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(i) in paragraph (1)(A)(ii), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 8(d)’’ and inserting ‘‘section 8(i)’’;
(B) in subsection (e), by striking ‘‘section
8(b)(1)’’ and inserting ‘‘section 8’’.
(3) SUPPORTIVE HOUSING FOR ELDERLY FAMI-
LIES.—Section 801(d)(1)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (12 U.S.C.
1701q note) is amended by striking ‘‘section
8(c)(1)’’ and inserting ‘‘section 8(e)’’.
(4) ELDERLY INDEPENDENCE.—Section 803 of
the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8012) is amended—
(A) in subsection (a), by striking ‘‘housing
certificates and vouchers’’ and inserting ‘‘assist-
ance under section 8 of the United States
Housing Act of 1937’’; and
(B) in subsection (b)—
(i) in the 1st sentence, by striking
‘‘not more than 1,500 incremental vouch-
ers and certificates under sections 8(b) and
8(o) of the United States Housing Act of
1937’’ and inserting ‘‘incremental assist-
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ance under section 8 of the United States
Housing Act of 1937 on behalf of not more
than 1,500 frail elderly persons’’;
(ii) in the 3rd sentence, by striking
‘‘the housing certificate or voucher pro-
gram of the agency’’ and inserting ‘‘the
agency’s program for assistance under
such section 8’’; and
(iii) in the last sentence, by striking
‘‘sections 8(b) and 8(o)’’ and inserting
‘‘section 8’’.
(5) REVISED
CONGREGATE
HOUSING
SERV-
ICES.—Section 802(k)(6)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
8011(k)(6)(B)) is amended by striking ‘‘subsection
(d)(2)’’ and inserting ‘‘subsection (i)’’.
(6) HOUSING FOR PERSONS WITH AIDS.—Sub-
title D of title VIII of the Cranston-Gonzalez Na-
tional Affordable Housing Act is amended—
(A) in section 859(a)(2) (42 U.S.C.
12908(a)(2)) by striking ‘‘section 8(p)’’ each
place 
it 
appears 
and 
inserting 
‘‘section
8(m)(1)’’; and
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(B) 
in 
section 
860(a) 
(42 
U.S.C.
12909(a)), by striking ‘‘section 8(n)’’ and in-
serting ‘‘section 8(l)’’.
(7) MCKINNEY
ACT.—Section 441(b) of the
Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11401(b)) is amended—
(A) by striking ‘‘section 8(n)’’ and insert-
ing ‘‘section 8(l)’’; and
(B) by adding at the end the following new
sentence: ‘‘Moderate rehabilitation under this
section shall be carried out in the manner pro-
vided under the provisions of section 8(e) of the
United States Housing Act of 1937, as such
section was in effect (pursuant to section
289(b)(2) of the Cranston-Gonzalez National
Affordable Housing Act) immediately before the
enactment of the Housing and Community De-
velopment Act of 1994.’’.
(8) FLEXIBLE
SUBSIDY
PROGRAM.—Section
201 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z–1a) is
amended—
(A) in subsection (m)(2)(A), by striking
‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’;
and
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(B) in subsection (o), by striking ‘‘section
8(v)’’ and inserting ‘‘section 8(q)(2)’’.
(9) HUD-OWNED
PROJECTS.—Section 203 of
the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1701z–11) is amended—
(A) in subsection (e)(1)(D)—
(i) in clause (i)(IV), by inserting be-
fore the semicolon the following: ‘‘, as such
section was in effect (pursuant to section
289(b)(2) of the Cranston-Gonzalez Na-
tional Affordable Housing Act) imme-
diately before the enactment of the Hous-
ing and Community Development Act of
1994’’; and
(ii) in clause (ii), by striking ‘‘section
8(b)’’ and inserting ‘‘section 8’’;
(B) in subsection (g)(2), by striking ‘‘,
8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘
and 8(h)(2)(iii)’’; and
(C) in subsection (h)(2), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’.
(10) HOUSING
ACCESS.—Section 204 of the
Housing and Community Development Amendments
of 1978 (12 U.S.C. 1701z–12) is amended by strik-
ing ‘‘to a holder of a certificate of eligibility under
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that section solely because of such prospective ten-
ant’s status as a certificate holder’’ and inserting
‘‘to a family that is approved for assistance under
such section solely because of such the family’s sta-
tus as assisted under such section’’.
(11) ELIHPA OF 1987.—The references in sec-
tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the
Emergency Low Income Housing Preservation Act
of 1987 (as in effect immediately before the enact-
ment of the Cranston-Gonzalez National Affordable
Housing Act) to section 8(b) of the United States
Housing Act of 1937 shall be considered to refer to
section 8(e) of the United States Housing Act of
1937 (as amended by the Housing and Community
Development Act of 1994).
(12) LIHPRHA OF 1990.—Title II of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 4101 et seq.) is amended—
(A) in section 215(a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’;
and
(ii) in paragraph (2), by striking ‘‘sec-
tion 
8(c)(1)’’ 
and 
inserting 
‘‘section
8(e)(1)’’;
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(B) in section 220(d)(3)(B), by striking
‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;
(C) in section 222—
(i) in subsection (a)(2)(D), by striking
‘‘section 8(c)’’ and inserting ‘‘section
8(e)’’; and
(ii) in subsection (d)(2)(C)(i), by
striking ‘‘sections 8(b) and 8(o) of the
United States Housing Act of 1937 (other
than project-based assistance attached to
the housing)’’ and inserting ‘‘tenant-based
assistance under section 8 of the United
States Housing Act of 1937’’;
(D) in section 223(a), by striking ‘‘the cer-
tificate and voucher programs under sections
8(b) and 8(o)’’ and inserting ‘‘section 8’’; and
(E) in section 226(b)(6)(B), by striking
‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting
‘‘section 8(h)(2)’’.
(13) DISASTER RELIEF.—
(A) TENANT-BASED ASSISTANCE.—Section
931 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 1437c note) is
amended—
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(i) in the section heading, by striking
‘‘CERTIFICATES AND VOUCHERS’’ and
inserting 
‘‘TENANT-BASED
ASSIST-
ANCE’’; and
(ii) by striking ‘‘assistance under the
certificate and voucher programs under
sections 8 (b) and (o)’’ and inserting ‘‘ten-
ant-based assistance under section 8’’.
(B) MODERATE REHABILITATION ASSIST-
ANCE.—Section 932 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
1437c note) is amended by inserting after
‘‘such Act’’ the following: ‘‘, as such section was
in effect (pursuant to section 289(b)(2) of the
Cranston-Gonzalez National Affordable Hous-
ing Act) immediately before the enactment of
the Housing and Community Development Act
of 1994,’’.
(14) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522(f)(6)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
1437f note) is amended—
(A) by striking ‘‘assistance under section
8(b)’’ and inserting ‘‘tenant-based assistance
under section 8’’; and
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(B) by striking ‘‘section 8(d)(1)(A)(i)’’ and
inserting ‘‘section 8(h)(2)’’.
(15) PUBLIC HOUSING NEW CONSTRUCTION IN-
COME ELIGIBILITY.—Section 545(c)(2) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note) is amended by striking ‘‘section
8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.
(16) SECTION
EXCESSIVE
RENT
BURDEN
DATA.—Section 550(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f
note) is amended—
(A) in paragraph (1), by striking ‘‘under
the certificate and voucher programs estab-
lished’’ and inserting ‘‘with tenant-based assist-
ance’’;
(B) in the first sentence of paragraph (2),
by striking ‘‘, for each’’ and all that follows
through ‘‘participating in the program’’ and in-
serting ‘‘the percentage of families receiving
tenant-based assistance’’; and
(C) in paragraph (3), by striking ‘‘assist-
ance under the certicate or voucher program’’
and inserting ‘‘tenant-based assistance under
section 8 of the United States Housing Act of
1937’’.
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(17) 
RURAL
HOUSING
PRESERVATION
GRANTS.—Section 533(a) of the Housing Act of
1949 (42 U.S.C. 1490m) is amended by striking
‘‘assistance payments as provided by section 8(o)’’
and inserting ‘‘tenant-based assistance payments
under section 8 (including assistance in accordance
with section 8(f)(2)’’.
(18) FEDERALLY
ASSISTED
HOUSING
OCCU-
PANCY STANDARDS.—Section 643(b)(2) of the Hous-
ing and Community Development Act of 1992 (42
U.S.C. 13603(b)(2)) is amended by striking ‘‘section
8(d)(1)’’ and inserting ‘‘section 8(h)’’.
(19) RESERVATION OF SECTION 8 UNITS FOR
DISABLED FAMILIES.—Section 655 of the Housing
and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ‘‘section
8(d)(1)(A)(i) of the United States Housing Act of
1937 and the first sentence of section 8(o)(3)(B) of
such Act’’ and inserting ‘‘section 8(h)(2) of the
United States Housing Act of 1937’’.
(20) GAO REPORT ON LEAD EXPOSURE.—Sec-
tion 1056(a) of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 4855) is amended
by striking ‘‘subsections (b) and (o) of’’.
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(21) NATIONAL HOUSING ACT.—The National
Housing Act is amended—
(A) in section 203(v) (12 U.S.C. 1709(v)),
as added by section 185(c)(1)(B) of the Hous-
ing and Community Development Act of 1992,
by striking ‘‘section 8(y)’’ and inserting ‘‘sec-
tion 8(t)’’; and
(B) in section 236(f)(5)(A)(i) (12 U.S.C.
1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’
and inserting ‘‘section 8(e)’’.
(c) APPLICABILITY.—The amendments under this
section are made on the date of the enactment of this Act,
but shall apply on and after October 1, 1995, only to as-
sistance under section 8 of the United States Housing Act
of 1937 provided pursuant to an assistance contract en-
tered into or renewed on or after such date. Any such as-
sistance provided pursuant to an assistance contract en-
tered into before such date shall be subject to the provi-
sions of such section 8 as in effect immediately before the
enactment of this Act or otherwise applicable to such as-
sistance.
(d) TRANSITION.—
(1) CONVERSION.—The Secretary may provide
for the conversion of assistance under the certificate
and voucher programs, as such programs existed be-
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fore the date of the enactment of this Act, to the
certificate program established under the amend-
ments under this section.
(2) CONTINUATION OF ASSISTANCE.—The Sec-
retary of Housing and Urban Development shall
take any action necessary to ensure that the provi-
sion of assistance under section 8 of the United
States Housing Act of 1937 to families receiving as-
sistance under such section on the date of the enact-
ment of this Act is not interrupted because of the
amendments under this section.
(e) REGULATIONS.—The Secretary shall implement
the amendments under this section by regulation issued
after notice and opportunity for public comment.
SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST
MORTGAGES FOR SECTION 8 PROJECTS.
Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end
the following new subsection:
‘‘(v) REFINANCING INCENTIVE.—For a project that
(1) was constructed, substantially rehabilitated, or mod-
erately rehabilitated under this section, (2) is subject to
an assistance contract under this section, and (3) was sub-
ject to a mortgage that has been refinanced under section
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223(a)(7) or section 223(f) of the National Housing Act
to lower the periodic debt service payments of the owner,
the Secretary may pay the owner the amount of the up
front costs to the owner of refinancing. The Secretary may
make such payments only from savings in the amount of
assistance payments, as determined by the Secretary on
a project-by-project basis and after application of amounts
in accordance with section 1012 of the Stewart B. McKin-
ney Homeless Assistance Amendments Act of 1988, that
result from the refinancing during the first year after the
refinancing.’’.
SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS
RESIDUAL RECEIPTS.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram, in conjunction with State housing agencies, under
which the Secretary, at the request of owners of qualified
projects, makes amounts in the account for residual re-
ceipts or excess amounts for the qualified projects avail-
able for use under model programs to expand the supply
of affordable housing.
(b) LIMITATION.—The Secretary may not make any
amounts available for use under the demonstration pro-
gram under this section from the account of a qualified
project for residual receipts or excess amounts unless the
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amount remaining in the account, together with replace-
ment reserves for the project, is sufficient (in the deter-
mination of the Secretary) to maintain, manage, and pre-
serve the project as affordable housing.
(c) QUALIFIED PROJECTS.—For purposes of this sec-
tion, the term ‘‘qualified project’’ means a housing
project—
(1) assisted with project-based assistance under
section 8 of the United States Housing Act of 1937;
or
(2) constructed or substantially rehabilitated
pursuant to assistance provided under section
8(b)(2) of the United States Housing Act of 1937,
as such section existed before November 30, 1983.
SEC. 145. TREATMENT OF CERTAIN PROJECTS.
(a) CONVERSION OF SECTION 23 PROJECT.—From
amounts available for the conversion of the Tamaqua
Highrise project in the Borough of Tamaqua, Pennsylva-
nia, from a leased housing contract under section 23 of
the United States Housing Act of 1937 to tenant-based
assistance under section 8 of such Act, the Secretary of
Housing and Urban Development shall, to the extent such
amounts are made available in appropriation Acts, enter
into an obligation for the conversion of the project to a
project-based rental assistance contract under section 8 of
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such Act, notwithstanding the requirement for rehabilita-
tion or the percentage limitations under section 8(d)(2)
of such Act (as in effect before the date of the enactment
of this Act) and subparagraph (A) of section 8(i)(2) of
such Act (as amended by section 143 of this Act).
(b) COMPLIANCE WITH REHABILITATION REQUIRE-
MENT.—Rehabilitation activities undertaken by E.T.C.
Enterprises in connection with 16 scattered-site dwelling
units that were rehabilitated to provide housing for low-
income families and are located in Perth Amboy, New Jer-
sey, and rehabilitation activities undertaken by Pennrose
Properties in connection with 40 dwelling units for senior
citizens in the Providence Square development located in
New Brunswick, New Jersey, are hereby deemed to have
been conducted pursuant to the approval of and an agree-
ment with the Secretary of Housing and Urban Develop-
ment under clauses (i) and (ii) of the third sentence of
section 8(d)(2)(A) of the United States Housing Act of
1937 (as in effect before the date of the enactment of this
Act) and subparagraph (A) of section 8(i)(2) of such Act
(as amended by section 143 of this Act).
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SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF
OWNERS AND LANDLORDS IN SECTION 8
RENTAL ASSISTANCE PROGRAM.
The Secretary of Housing and Urban Development
shall conduct a study—
(1) to determine the extent to which the re-
quirements of section 8(p)(2) of the United States
Housing Act of 1937 (as amended by this Act) and
section 8(t) of such Act (as in effect before the en-
actment of this Act) cause owners of multifamily
rental housing to abstain from entering into con-
tracts for housing assistance payments under such
section; and
(2) to identify other factors causing owners of
such housing to abstain from entering into such con-
tracts.
In conducting the study, the Secretary shall consult a sig-
nificant number of owners in a wide range of areas. The
Secretary shall submit a report to the Congress describing
the results of the study not later than February 1, 1996.
SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STAND-
ARDS.
The Secretary of Housing and Urban Development
shall conduct a study of the existing standards for housing
quality for dwelling units assisted under the program for
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rental assistance under section 8 of the United States
Housing Act of 1937. The study shall determine—
(1) whether the standards are effective in en-
suring decent, safe, and sanitary housing;
(2) how, and the extent to which, the standards
are enforced; and
(3) how the standards or the enforcement of the
standards may be improved.
The Secretary shall submit a report to the Congress
not later than 2 years after the date of the enactment of
this Act describing the results of the study and containing
any recommendations of the Secretary to carry out para-
graph (3).
Subtitle D—Renewal of Expiring
Contracts for Section 8 New
Construction 
and 
Substantial
Rehabilitation Projects
SEC. 151. FINDINGS AND PURPOSE.
(a) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) housing built or substantially rehabilitated
pursuant to section 8 of the United States Housing
Act of 1937 is an important national resource that
has provided decent, safe, and affordable housing to
hundreds of thousands of low-income families who
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otherwise would not have obtained affordable hous-
ing;
(2) the Federal Government is the steward of
this assisted housing stock and has an affirmative
obligation to preserve it as housing for low-income
families, consistent with considerations of fairness to
all interested parties, including owners, residents,
property managers, the community in which the
housing is located, and taxpayers;
(3) because section 8(e)(1) of the United States
Housing Act of 1937 (as in effect prior to November
30, 1983) provided, for the most part, that contracts
to make assistance payments to owners of newly
constructed or substantially rehabilitated housing fi-
nanced with assistance of a loan made by, or in-
sured, guaranteed or intended for purchase by the
Federal Government, other than pursuant to section
244 of the National Housing Act, could not exceed
20 years and because such housing was constructed
or substantially rehabilitated during the period from
1975 to 1985, a substantial number of contracts
that provide for such assistance will soon expire
(with other housing constructed or substantially re-
habilitated pursuant to such section of law sup-
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ported through housing assistance contracts of
longer duration, which will expire at a later time);
(4) failure to enter into new housing assistance
contracts under equitable and financially sound
terms and conditions will reduce the supply of de-
cent, safe, and affordable housing for low-income
Americans, while the demonstrated need for such
housing remains great;
(5) in order for the urban and rural population
centers of the United States to regain their viability,
the housing stock in such population centers must
be preserved, which includes preserving housing built
or substantially rehabilitated under section 8 of the
United States Housing Act of 1937;
(6) assisted housing projects located in areas of
relative affluence can promote racial, social, and eco-
nomic integration, and such projects should be main-
tained as part of the affordable housing inventory to
the maximum extent practicable;
(7) the number of units of housing currently re-
ceiving project-based section 8 assistance should not
be reduced as a result of the expiration of any cur-
rent contracts; and
(8) the number of households currently assisted
by reason of residence in housing projects receiving
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project-based section 8 assistance should not be re-
duced as a result of the expiration of any current
contracts to provide project-based assistance, though
some of the specific families currently living in such
housing may either receive such assistance in an-
other location or become recipients of tenant-based
assistance under appropriate circumstances (with
the preference, as a matter of public policy, to the
continued assistance of such households through
project-based assistance).
(b) PURPOSE.—It is the purpose of this subtitle to
provide for the preservation of affordable housing con-
structed or substantially rehabilitated pursuant to section
8 of the United States Housing Act of 1937, and to pro-
vide affordable housing opportunities for at least the same
number of families as are provided such housing by reason
of their residence in housing projects receiving project-
based assistance under such section, in a manner that is
administratively efficient, cost-effective, and fair to all in-
terested parties, including owners, residents, property
managers and the communities in which the housing is
located.
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SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTEN-
TION TO RENEW.
(a) NOTICE TO OWNER.—Not later than 27 months
before the date of expiration of an expiring contract (or,
in the case of a qualified project subject to an expiring
contract for which the date of expiration occurs less than
27 months after the date of the enactment of this Act,
not later than 6 months after the date of enactment of
this Act), the Secretary shall notify the owner of the quali-
fied project, in writing, that the owner has an affirmative
obligation pursuant to subsection (b).
(b) NOTICE BY OWNER TO SECRETARY.—Not later
than 24 months before the date of expiration of an expir-
ing contract (or, in the case of a qualified project subject
to an expiring contract for which the date of expiration
occurs less than 27 months after the date of the enact-
ment of this Act, not later than 9 months after the date
of enactment of this Act), the owner of the qualified
project shall simultaneously—
(1) submit to the Secretary written notice stat-
ing whether or not the owner intends to enter into
a new contract pursuant to this subtitle for project-
based assistance for the qualified project; and
(2) submit a copy of the notice to the chief ex-
ecutive officer of the State or unit of general local
government for the jurisdiction within which the
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project is located, any mortgagee of the project, the
tenants of the project (including any resident council
for the project), and such other individuals or enti-
ties as the Secretary may require.
(c) SUBMISSION OF PROPOSAL TO ENTER INTO NEW
CONTRACT.—If in the notice required by subsection (b)
the owner indicates an intention to enter into a new con-
tract for assistance for the qualified project, not later than
3 months after submitting such notice to the Secretary,
the owner shall simultaneously—
(1) submit to the Secretary a proposal specify-
ing terms and conditions for the new contract, which
shall comply with the requirements for new contracts
under this subtitle; and
(2) submit a copy of the notice to the chief ex-
ecutive officer of the State or unit of general local
government for the jurisdiction within which the
project is located, any mortgagee of the project, the
tenants of the project (including any resident council
for the project), and such other individuals or enti-
ties as the Secretary may require.
(d) CAPITAL NEEDS ASSESSMENT.—
(1) REQUIREMENT.—Within a reasonable pe-
riod of time after receiving a proposal under sub-
section (c) to enter into a new contract for a quali-
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fied project, the Secretary shall conduct a com-
prehensive assessment of the needs of the project to
determine the rehabilitation needs and replacement
reserves necessary to preserve the project during the
ensuing 10-year period.
(2) CONTENT.—The assessment shall obtain
the same information regarding the qualified project
that is required to be contained in a comprehensive
needs assessment under section 403 of the Housing
and Community Development Act of 1992 for a cov-
ered multifamily housing property subject to title IV
of such Act, shall assess the management perform-
ance for the project, and shall obtain any other in-
formation as the Secretary considers appropriate for
purposes of this subtitle regarding the project, ten-
ants, and market area in which the project is lo-
cated.
(e) TENANT AND COMMUNITY PARTICIPATION.—
(1) ESTABLISHMENT
OF
PROCEDURES.—The
Secretary shall establish procedures that provide an
opportunity for tenants of a qualified project (in-
cluding any resident council) and other affected par-
ties to participate effectively in the process estab-
lished under this section and section 153 to deter-
mine whether and under what terms and conditions
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a new contract will be provided for the project or
other assistance will be made available.
(2) CONTENT
OF
PROCEDURES.—The proce-
dures established under this subsection shall include
providing timely and adequate written notice of the
proposed decisions of the owner and the Secretary
regarding the qualified project, timely access to all
relevant information (not including information de-
termined to be proprietary under standards estab-
lished by the Secretary), an adequate period to ana-
lyze such information and submit comments to the
Secretary (which the Secretary shall take into con-
sideration in carrying out this subtitle), and, if re-
quested, arranging meetings with representatives of
the Secretary and the owner.
(3) APPLICABILITY.—The procedures estab-
lished under this subsection shall provide for the
participation of tenants of a qualified project and
other affected parties in at least the following ac-
tions:
(A) Physical inspection of the qualified
property under section 155(b) and determina-
tion of capital needs of a property pursuant to
subsection (d).
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(B) Any determination under section 154
regarding the owner of the project.
(C) Review of notice and any proposal sub-
mitted by the owner under subsections (b) and
(c) of this section.
(D) Determination of the response of the
Secretary under section 153.
(E) Determination of the terms of any new
contract for the project.
(F) Establishing and carrying out any plan
for sale of the project under section 157(c)(1).
(G) Establishing and carrying out of any
plan to provide assistance under subsection (d)
or (e) of section 157.
(4) MINIMUM PERIOD FOR TENANT NOTIFICA-
TION.—The Secretary shall notify tenants of a quali-
fied project of any agreement to enter into a new
contract for the project or of the failure to enter into
a new contract for the project, as the case may be,
not less than 12 months before the expiration of ex-
piring contract. If, in the case of a failure to enter
into a new contract for a qualified project, the Sec-
retary fails to comply with the requirement under
the preceding sentence, the Secretary shall (subject
only to the availability of budget authority) provide
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such additional assistance as may be necessary to
extend the contract for such 12-month period.
SEC. 153. SECRETARY’S RESPONSE TO OWNER’S PROPOSAL.
(a) REQUIREMENT.—Except in the case of an owner
who submits a notice under section 152(b) stating an in-
tention not to enter into a new contract and in the case
of rejection of an owner’s proposal under subsection (c),
not later than 90 days after an owner submits a proposal
under section 152(c) for a qualified project (or not later
than 30 days after the expiration of the period under sec-
tion 152(b), in the case of an owner failing to provide no-
tice under such subsection), the Secretary shall take action
under subsection (b) to enter into a new contract.
(b) RESPONSE
TO OWNER’S PROPOSAL.—Subject
only to the availability of budget authority, the Secretary
shall take the following actions:
(1) STATUS QUO CONTRACTS.—In the case of a
qualified project for which the maximum monthly
rents for units in the project that are assisted under
the expiring contract do not (24 months before the
date of the expiration of the contract) exceed 110
percent of the fair market rentals for dwelling units
of the applicable sizes and types of dwelling units in
the relevant metropolitan market area and a quali-
fied project for which the owner agrees to reduce the
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maximum monthly rents so that the rents do not ex-
ceed 110 percent of such fair market rentals—
(A) if the owner’s proposal under section
152(c) provides for establishing maximum
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(a) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal and
shall enter into a new contract for the project;
and
(B) if the owner’s proposal under section
152(c) does not provide for establishing maxi-
mum monthly rents under the contract for
dwelling units in the project pursuant to the
procedure under section 156(a) or otherwise
fails to comply with the requirements of this
title, or the owner has failed to submit a pro-
posal, the Secretary shall make an offer to
enter into a new contract for the project (by
modifying the owner’s proposal under section
152(c), if the owner has submitted a proposal)
and, if the owner accepts, the Secretary shall
enter into such a new contract for the project.
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The Secretary may not offer or agree to enter into
a new contract for a qualified project, or enter into
such a contract, that establishes maximum monthly
rents under the contract for dwelling units in the
project pursuant to the procedure under section
156(a) unless the maximum monthly rents under the
expiring contract for the project meet the require-
ments of the matter in this paragraph preceding
subparagraph (A).
(2) BUDGET-BASED CONTRACTS.—In the case
of a qualified project for which the maximum month-
ly rents for units in the project that are assisted
under the expiring contract (24 months before the
date of the expiration of the contract) exceed 110
percent of the fair market rentals for dwelling units
of the applicable sizes and types of dwelling units in
the relevant metropolitan market area—
(A) if the owner’s proposal under section
152(c) provides for establishing maximum
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(b) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal under
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section 152(c) and shall enter into a new con-
tract for the project; and
(B) if the owner’s proposal under section
152(c) does not provide for establishing maxi-
mum monthly rents under the contract for
dwelling units in the project pursuant to the
procedure under section 156(b) or otherwise
fails to comply with the requirements of this
title, or the owner has failed to submit a pro-
posal, the Secretary shall make an offer to
enter into a new contract for the project (by
modifying the owner’s proposal under section
152(c), if the owner has submitted a proposal)
and, if the owner accepts, the Secretary shall
enter into such a new contract for the project.
(3) MARKET RENT CONTRACTS FOR HIGH-COST
AREAS.—Notwithstanding paragraphs (1) and (2),
in the case of a qualified project for which the Sec-
retary determines that the maximum monthly rents
for units in the project offered (or to be offered) by
the Secretary under paragraph (1) or (2), as appli-
cable, are less than the monthly rents for com-
parable units in comparable unassisted housing
projects in the relevant metropolitan market area,
the Secretary may offer to enter into a new contract
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for the qualified project that provides for the estab-
lishment of the maximum monthly rents at amounts
not exceeding the monthly rents for such comparable
units. Each new contract entered into under this
paragraph shall provide that the maximum monthly
rents for the qualified project shall be adjusted an-
nually by applying the annual adjustment factor es-
tablished by the Secretary under section 156(a)(2)
to the entire amount of the maximum monthly rents.
(4) CONTRACTS
FOR
PARTIALLY
ASSISTED
PROJECTS.—Notwithstanding paragraphs (1) and
(2), in the case of a qualified project for which as-
sistance is provided under an expiring contract for
some, but not all, of the dwelling units in the
project, the Secretary may offer to enter into a new
contract for the qualified project that provides for
the establishment of the maximum monthly rents for
units in the project assisted under the expiring con-
tract at amounts not exceeding the sum of (A) the
monthly rents for comparable unassisted units in the
project, and (B) an allowance for unique costs as de-
termined under section 156(b)(1)(G). Each new con-
tract entered into under this paragraph shall provide
that the maximum monthly rents for the qualified
project shall be adjusted annually by applying the
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annual adjustment factor established by the Sec-
retary under section 156(a)(2) to the entire amount
of the maximum monthly rents.
(5) AVOIDING OVERCONCENTRATION OF LOW-
INCOME HOUSING.—Notwithstanding paragraphs (1)
and (2), with respect to a qualified project for which
the Secretary is to provide a new contract under ei-
ther such paragraph, the Secretary may reduce the
number of dwelling units otherwise required to be
assisted under the new contract (pursuant to section
155(a)(3)) if—
(A) the Secretary determines that the
project is located in a market area in which
there is a high concentration of dwelling units
occupied by or affordable to very low-income
families;
(B) the Secretary consults with the owner
of the project, the tenants of the project (in-
cluding any resident council), and representa-
tives of the community in which the project is
located regarding such reduction and action
under subparagraph (D);
(C) the owner and affected tenants consent
to the reduction and action under subparagraph
(D);
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(D) the Secretary provides project-based
assistance for a number of dwelling units that
is not less than the difference between the num-
ber of units otherwise required to be assisted
under the new contract and the number actu-
ally assisted under the new contract; and
(E) the dwelling units assisted under sub-
paragraph (D) are located in market areas
other than the area in which the qualified
project is located and such areas do not have a
high concentration of dwelling units occupied by
or affordable to very low-income families.
The Secretary shall determine the maximum month-
ly rents for dwelling units assisted under subpara-
graph (D) using the procedures under paragraph (2)
of this subsection and section 156. In determining
the maximum monthly rents under the new contract
for any dwelling units in the qualified project, the al-
lowance under section 156(b)(1)(G) may be in-
creased to reflect higher costs per unit assisted at-
tributable to assisting less units.
(c) REJECTION OF OWNER’S PROPOSAL.—The Sec-
retary may reject a proposal submitted pursuant to section
152(c) only for a reason contained in the regulations is-
sued under section 154.
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(d) NOTICE
OF SECRETARY’S ACTION.—The Sec-
retary shall simultaneously—
(1) submit written notice of any action under
subsection (b) or (c) to the owner of the qualified
project for which such action is taken; and
(2) submit a copy of the notice to the chief ex-
ecutive officer of the appropriate State or unit of
general local government for the jurisdiction within
which the project is located, any mortgagee of the
project, the tenants of the project (including any
resident council for the project), and such other indi-
viduals or entities as the Secretary may require.
Notice under this subsection shall be submitted not later
than the expiration of the period for the qualified project
referred to in subsection (a). If the Secretary does not pro-
vide notice to the owner as required under this subsection,
the proposal of the owner shall be considered to have been
accepted without modification. Any notice rejecting a pro-
posal by the owner shall clearly state the reason for reject-
ing the proposal.
(e) MODIFICATIONS TO OWNER’S PROPOSAL.—The
Secretary may propose modifications to an owner’s pro-
posal submitted pursuant to section 152(c) only to the ex-
tent necessary to make the proposal comply with the re-
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quirements under this subtitle for acceptance by the Sec-
retary.
(f) LIMITATION ON SECRETARY’S AUTHORITY TO RE-
JECT OR MODIFY.—The Secretary may not reject or pro-
pose modifications to a proposal submitted pursuant to
section 152(c) because an enforcement action is pending
against the owner. Notwithstanding any other provision
of this subtitle, in such event, the Secretary shall, subject
only to the availability of budget authority, extend the ap-
plicable expiring contract for the period until the enforce-
ment action is concluded.
SEC. 154. LIMITATION ON NEW CONTRACTS.
(a) IN GENERAL.—The Secretary may refuse to enter
into a new contract with the owner of a qualified project
if the Secretary determines that the owner of the project
submitting the proposal has committed—
(1) violations of laws, regulations, regulatory
agreements, or other agreements for which the Sec-
retary may impose suspension, debarment, civil
money penalties, and such other major forms of en-
forcement action available to the Secretary under
law; or
(2) other substantial and repeated violations of
laws, regulations, regulatory agreements or other
agreements that have not been cured within a rea-
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sonable period of time after notice was provided to
the owner.
(b) REGULATIONS.—Not later than 45 days after the
date of enactment of this Act, the Secretary shall publish
for comment proposed regulations identifying the viola-
tions that, under subsection (a), prohibit the Secretary
from entering into a new contract.
SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.
(a) IN GENERAL.—The Secretary may accept the
proposal of an owner (made under section 152(c) or nego-
tiations pursuant to such a proposal), and may propose
modifications to such a proposal and make an offer to
enter into a new contract for qualified housing, only if the
agreement provides for a new contract for the qualified
housing that complies with the following requirements:
(1) RENEWAL FOR REMAINING USEFUL LIFE OF
PROPERTY.—A new contract shall contain binding
commitments necessary to ensure that—
(A) the contract shall be renewed as pro-
vided in paragraph (5) upon expiration for the
entire remaining useful life of the qualified
project subject to the contract, subject only to
the availability of budget authority, the provi-
sions of this subtitle, and the provisions of the
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contract or law regarding termination of the
contract for cause; and
(B) renewal of the contract under para-
graph (5) shall not alter or affect the terms of
the contract.
(2) PROJECT-BASED ASSISTANCE.—A new con-
tract shall provide that the Secretary shall provide
project-based assistance under this subtitle for dwell-
ing units in the qualified project subject to the con-
tract based upon maximum monthly rents (including
utilities and all maintenance and management
charges) that the owner may receive for the dwelling
units.
(3) LOW-INCOME OCCUPANCY.—A new contract
shall provide that, during the term of the contract,
the owner shall make available for occupancy only by
families that (at the time of their initial occupancy)
are low-income families or very low-income families
(as the contract shall provide) the number of dwell-
ing units in the qualified project subject to the con-
tract for which assistance is provided under the ex-
piring contract.
(4) MAINTENANCE OF HOUSING.—The new con-
tract shall—
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(A) require the owner of the qualified
project to maintain the housing in compliance
with housing quality standards established by
the Secretary for housing assisted under section
8 of the United States Housing Act of 1937;
(B) provide that the provisions of section
8(h)(10) of such Act shall apply to the qualified
project, except that in the case of a qualified
project—
(i) any reference in such section to a
public housing agency shall be construed to
refer also to the Secretary; and
(ii) any reference in such section to
assistance under section 8 shall be con-
strued to refer to assistance under a new
contract; and
(C) provide that upon a request by the
owner, the Secretary shall provide for a review
of any determination of a serious noncompli-
ance of the project with such housing quality
standards, which review shall—
(i) determine whether (I) a serious
noncompliance has occurred, (II) the
owner was permitted a reasonable period
of time to correct the noncompliance, and
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(III) the owner has the responsibility to
correct the noncompliance;
(ii) be conducted by an officer or em-
ployee of the Department of Housing and
Urban Development who is not the officer
or employee who made the initial deter-
mination of the noncompliance and is not
subject to the supervision of such officer or
employee; and
(iii) include a written decision of the
finding pursuant to the review.
(5) CONTRACT
TERM.—A new contract shall
have a term of 60 months and shall be renewable for
additional 60-month terms without limitation.
(6) SECTION 8 REQUIREMENTS.—A new con-
tract shall provide that the qualified project subject
to the contract shall be subject to the requirements
applicable to housing assisted under section 8(i) of
the United States Housing Act of 1937.
(7) CAPITAL
NEEDS.—A new contract shall
contain such terms as the Secretary and the owner
agree to regarding conducting rehabilitation and re-
placement activities for the project and may provide
amounts to the owner for meeting immediate reha-
bilitation and replacement needs of the qualified
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project if the Secretary determines that providing
such amounts would be more cost effective to the
Secretary than financing such activities through in-
creased project debt.
(8) MAXIMUM MONTHLY RENTS.—A new con-
tract shall provide that the maximum monthly rents
for the project under the contract shall be the
amount determined under section 156 (or, in the
case of a new contract entered into under paragraph
(3) or (4) of section 153(b), the amount determined
under such paragraph) upon entering into the con-
tract, and shall be adjusted annually as provided
under such section (or paragraph (3) or (4) of sec-
tion 153(b), if applicable), except that—
(A) the maximum monthly rents shall be
redetermined in the manner provided under sec-
tions 153(b) and 156 upon each renewal of the
contract;
(B) the owner of the project may, at any
time, submit a written request to the Secretary
for a redetermination of the maximum monthly
rents for the project using the procedure under
section 156(b) and, after such request, the
rents shall be determined using such method for
the remainder of the term of the contract; and
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(C) in the case of a project that is subject
to a mortgage insured by the Secretary and for
which the maximum monthly rents under the
new contract are determined and adjusted
under section 156(a), if at any time the Sec-
retary determines that such rents are not suffi-
cient to provide for the sound operation of the
project while maintaining payment of debt serv-
ice for the project, the Secretary may require
redetermination of the maximum monthly rents
for the project using the procedure under sec-
tion 156(b) and, after such request, the rents
shall be determined using such method for the
remainder of the term of the contract and the
provisions of section 159(b) shall apply to the
project.
(9) CONSIDERATION OF TENANT CONCERNS.—
A new contract shall provide that the owner of the
qualified housing shall—
(A) establish and, in good faith, carry out
a procedure, acceptable to the tenants (includ-
ing any resident council) of the project, for ten-
ants to submit to the owner comments, ques-
tions, and requests regarding any issues con-
cerning the project (including the condition,
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management, and ownership of the project);
and
(B) make a good faith effort to respond to
such comments, questions, and requests within
a reasonable period of time.
(b) PROPERTY INSPECTIONS AND MANAGEMENT RE-
VIEWS REQUIRED BY SECRETARY.—The Secretary shall
conduct an inspection of the physical condition of each
qualified project for which a new contract is entered into
under this subtitle and shall conduct a review of the man-
agement of each such qualified project, not less than once
every 3 years. The Secretary shall also conduct such an
inspection or review of a project when requested by the
unit of general local government for the jurisdiction in
which the project is located or by a petition signed by not
less than 10 percent of the tenants of occupied units in
the project.
SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CON-
TRACTS.
(a) STATUS QUO RENT DETERMINATION.—
(1) PROCEDURE.—If the maximum monthly
rents under a new contract for a qualified project
are to be established under this subsection, the rents
shall be established at the amount equal to the maxi-
mum monthly rents under the expiring contract ex-
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isting at the time 24 months before the date of the
expiration of the contract (or an amount mutually
agreed to by the Secretary and the owner that is less
than such amount).
(2) RENT ADJUSTMENTS.—
(A) IN GENERAL.—The maximum monthly
rents for any qualified project for which the
rents under a new contract are to be deter-
mined under this subsection shall be adjusted
annually by applying the annual adjustment
factor established by the Secretary under sub-
paragraph (B) to the entire amount of the max-
imum monthly rents.
(B) ANNUAL ADJUSTMENT FACTOR.—The
annual adjustment factor shall—
(i) measure the annual change for a
market area in the prevailing unsubsidized
market rents for various sizes and types of
dwelling units and shall be based solely on
such measure;
(ii) provide for decreases and in-
creases in the maximum monthly rents;
and
(iii) not provide for adjustment in the
maximum monthly rents based on any fac-
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tor other than the factor described in
clause (i).
The Secretary shall establish market areas for
purposes of establishing annual adjustment fac-
tors under this paragraph.
(3) SERVICE COORDINATORS.—Notwithstanding
paragraph (1), the maximum monthly rents estab-
lished (and adjusted) under this subsection for a
qualified project shall be increased to the extent nec-
essary to provide for the total costs of a service coor-
dinator under section 161 for the project.
(b) BUDGET-BASED RENT DETERMINATION.—
(1) PROCEDURE.—If the maximum monthly
rents under a new contract for a qualified project
are to be established under this subsection, the rents
shall be established at such a level or levels that
would provide income sufficient to cover the sum of
the following actual and projected costs of operating
the project:
(A) DEBT SERVICE.—The debt service on
any federally-insured or assisted loans for the
qualified project or any other loans for the
project approved by the Secretary at the time
the loans were entered into or subsequently, ex-
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cept that the Secretary may provide that such
debt service shall not include—
(i) any debt service attributable to
any equity loan insured under section
241(f) of the National Housing Act or any
similar loan made for the purposes of liq-
uidating the equity of the owner in the
qualified project; and
(ii) if the Secretary requires refinanc-
ing of debt under section 159 and the
owner does not refinance as provided in
such section, any debt service relating to
such debt in excess of the amount that the
Secretary determines is appropriate under
prevailing market conditions at the time
such refinancing was required to occur.
(B) OPERATING EXPENSES.—The operat-
ing expenses for the qualified project, including
costs of measures to reduce or control crime,
and the total costs of a service coordinator
under section 161 for the project.
(C) RESERVES.—An amount for adequate
reserves for the qualified project, as determined
pursuant to a comprehensive needs assessment
for the project prepared and approved in ac-
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cordance with title IV of the Housing and Com-
munity Development Act of 1992 or in such
other manner as the Secretary may require.
(D) ALLOWANCE FOR LOSSES.—An allow-
ance for potential operating losses of the quali-
fied project caused by vacancies and failure to
collect rents, which shall be an amount equal to
5 percent of any rental income from the project
(including any amounts paid in rent for utili-
ties).
(E) DISTRIBUTION TO OWNER.—An allow-
ance for a distribution to the owner of the
qualified project, which shall be an amount for
each dwelling unit in the project equal to the
higher of—
(i) $350 per year; or
(ii) 6 percent of the fair market rental
for dwelling units of the applicable size
and type in the relevant metropolitan mar-
ket area.
(F) TENANT ORGANIZATION.—An amount
for technical assistance to the resident council
(if any) of the qualified project or for technical
assistance in organizing or operating a resident
council, which shall be an amount equal to $20
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per dwelling unit in the project per year. The
Secretary shall provide that such amounts shall
not be made available to the owner but shall be
accessible only by resident councils or by ten-
ants for establishment or operation of resident
councils.
(G) ALLOWANCE FOR UNIQUE COSTS.—An
allowance for unique costs specific to and char-
acteristic of qualified housing or other housing
for low-income families receiving project-based
assistance from the Secretary, in the amount
agreed to by the Secretary and the owner.
(H) 
ALLOWANCE
FOR
HIGH-RENT
AREAS.—If the Secretary determines that the
prevailing rents in the market area in which a
qualified project is located exceed the fair mar-
ket rentals for dwelling units of the applicable
sizes and types of dwelling units in the relevant
metropolitan market area—
(i) an allowance may be provided (at
the discretion of the Secretary) in an
amount necessary to provide maximum
monthly rents under this subsection in an
amount equal to the prevailing market
rents in the area; and
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(ii) an allowance in the amount re-
ferred to in clause (i) shall be provided if
the Secretary determines that there is a
lack of sufficient housing in the market
area in which the project is located that is
affordable to low-income families.
(2) RENT ADJUSTMENTS.—
(A) IN GENERAL.—The maximum monthly
rents for any qualified project for which the
rents under a new contract are to be deter-
mined under this subsection shall be adjusted
annually by applying the operating cost adjust-
ment factor established by the Secretary under
subparagraph (B) to the entire amount of the
maximum monthly rents.
(B) OPERATING COST ADJUSTMENT FAC-
TOR.—The operating cost adjustment factor for
any 12-month period shall be equal to—
(i) the percent increase or decrease, if
any, in the Consumer Price Index pub-
lished for the 6th month preceding the be-
ginning of such period over such index
published for the 18th month preceding
such period, adjusted to the nearest 1⁄10 of
1 percent; or
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(ii) any other equivalent measure of
change in operating costs determined by
the Secretary.
For purposes of this subparagraph, the term
‘‘Consumer Price Index’’ means the Consumer
Price Index for All Urban Consumers, United
States City Average, Housing Component, pre-
pared by the Bureau of Labor Statistics of the
Department of Labor.
(C) EXCESSIVE ADJUSTMENTS.—The Sec-
retary may require the owner of a qualified
project for which a new contract has been pro-
vided to submit a proposal in the manner pro-
vided under paragraph (3) for redetermination
of maximum monthly rents for the project if—
(i) not less than 2 rent adjustments
have been made pursuant to subparagraph
(A) for the project;
(ii) an intervening redetermination of
maximum monthly rents for the project
pursuant to paragraph (1) has not oc-
curred; and
(iii) the Secretary determines that the
rents resulting from the rent adjustments
are materially in excess of the rents nec-
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essary to support the costs for the project
described in paragraph (1).
If pursuant to such a redetermination the Sec-
retary determines that the rents for the project
are greater than the amount described in clause
(iii), the Secretary may reduce the maximum
monthly rents for the project to the amount de-
scribed in clause (iii), effective on the first day
of the month following written notification by
the Secretary to the owner of such new rents.
(3) TIMING.—If the Secretary requests an
owner of a qualified project or a project for which
a new contract is to be provided to submit a pro-
posal for maximum monthly rents based on costs de-
scribed in paragraph (1) and the owner fails to sub-
mit such a proposal during the 90-day period begin-
ning upon receipt of such request, the Secretary may
establish the maximum monthly rents for the project
based on such information as is available to the Sec-
retary from the owner’s most recent audited finan-
cial statements, without the agreement of the owner.
(4) 
ADDITIONAL
INFORMATION
FROM
OWNER.—The owner of a qualified project (including
a project for which a new contract has been pro-
vided) may, at any time, submit to the Secretary in-
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formation regarding prevailing rent levels for com-
parable dwelling units in the relevant metropolitan
market area and the Secretary shall consider such
information in making any determinations or agree-
ments under this subsection regarding the project.
SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO
NEW CONTRACT.
(a) NOTICE.—If—
(1) the owner of a qualified project indicates, in
the notice required under section 152(b), an inten-
tion not to enter into a new contract,
(2) the Secretary and the owner fail to agree to
enter into a new contract after a reasonable period
of negotiation, or
(3) the Secretary refuses to enter into a new
contract with the owner pursuant to section 154,
the Secretary shall provide notice containing the informa-
tion under subsection (b) to the owner, the chief executive
officer of the State or unit of general local government
for the jurisdiction within which the project is located, any
mortgagee of the project, the tenants of the project (in-
cluding any resident council for the project), and such
other individuals or entities as the Secretary considers ap-
propriate.
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(b) CONTENTS OF NOTICE.—Notice under subsection
(a) shall identify the qualified project, state the intention
of the Secretary to enter into a new contract for the
project with an owner of the project acceptable to the Sec-
retary, state that the Secretary may take either of the ac-
tions authorized under subsection (c) with respect to the
project, and propose maximum monthly rents for the
project subject to the requirements of sections 153(b) and
156.
(c) ATTEMPTED SALE OF PROJECT.—After providing
notice under subsection (b) for a qualified project—
(1) the Secretary shall negotiate with the owner
and other interested parties to develop a plan for
sale of the project in a timely manner to a new
owner who agrees to enter into a new contract with
the Secretary and who may be a nonprofit or for-
profit entity, a State or local governmental entity, a
tenant (or group of tenants) or a resident council;
a new contract under this paragraph may be pro-
vided pursuant to the loan management program
under section 8(q)(2) of the United States Housing
Act of 1937 or a contract through a public housing
agency for project-based assistance under section
8(i) of such Act; and
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(2) notwithstanding paragraph (1), the Sec-
retary may acquire the qualified project by con-
demnation, under judicial process, pursuant to the
first section of the Act of August 1, 1888 (Chapter
728, 25 Stat. 357; 40 U.S.C. 257).
(d) FAILURE TO SELL PROJECT.—
(1) TRANSFER OF PROJECT-BASED ASSISTANCE
TO
OTHER
HOUSING.—If, after providing notice
under subsection (b) for a qualified project and
making reasonable efforts under subsection (c)(1)
the Secretary fails to enter into a new contract for
the project (and determines that action under sub-
section (c)(2) is not appropriate), the Secretary
shall, subject only to the availability of budget au-
thority and the absence of qualified requests for
such assistance, provide project-based rental assist-
ance for at least the same number of dwelling units
in housing located within the same market area as
the qualified project as were assisted under the ex-
piring contract for the project. Tenants of the quali-
fied project shall be offered initial occupancy in
dwelling units assisted pursuant to this paragraph.
(2) 
CONSULTATION.—In 
providing 
project-
based assistance under this subsection, the Secretary
shall consult with nonprofit and for-profit entities,
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State and local governmental entities, and tenants
and any resident council of the project, regarding
acquisition and operation of housing to be assisted
under this subsection.
(e) ASSISTANCE FOR PROJECT TENANTS.—
(1) RIGHT TO RECEIVE ASSISTANCE.—If, in the
notice required by section 152(b), the owner indi-
cates a preference not to enter into a new contract
or the Secretary fails to enter into a new contract
for the project, the Secretary shall provide assist-
ance under paragraphs (2) and (3), subject only to
the availability of budget authority, for each family
who on the date occurring 12 months before the ex-
piration of the expiring contract resides in a dwell-
ing unit in the project that is assisted under the ex-
piring contract.
(2) TYPE OF ASSISTANCE.—Assistance required
under this paragraph shall be provided, as deter-
mined by the Secretary, in one of the following
forms:
(A) TENANT-BASED ASSISTANCE.—Assist-
ance may be provided as tenant-based rental as-
sistance under the provisions of section 8(b) of
the United States Housing Act of 1937, as in
effect on June 1, 1994, except that in providing
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such assistance the Secretary shall increase the
maximum monthly rental amount to the extent
necessary to permit families remain in the
dwelling unit they occupy in the qualified
project or to obtain a comparable dwelling unit
in the same market area.
(B) OCCUPANCY
IN
A
UNIT
RECEIVING
PROJECT-BASED ASSISTANCE.—The family may
be offered occupancy of an available dwelling
unit that is assisted under a contract pursuant
to subsection (c)(1) or (d).
(3) RELOCATION ASSISTANCE.—Assistance re-
quired under this section is assistance to the tenant
of a qualified project in the amount of the total cost
of relocating to a unit assisted under paragraph (2).
SEC. 158. CONTRACT EXTENSION.
Subject to the availability of budget authority, the
Secretary may extend any expiring contract in force on
the date of enactment of this Act, under identical terms
and conditions, for not more than 24 months if the Sec-
retary determines that such extension is necessary to pro-
tect tenants of the qualified project subject to the contract
or the General Insurance Fund established under section
519 of the National Housing Act, except that—
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(1) the authority under this section may be ex-
ercised only once for any contract or qualified
project; and
(2) such authority may not be exercised for a
qualified project for which the owner has provided
timely notification under section 152(b) indicating
an intention not to enter into a new contract for the
project, unless the owner expressly agrees to the ex-
tension or the Secretary is taking action pursuant to
section 152(e)(5) or 153(f).
SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING
DEBT AND TREATMENT OF RESIDUAL RE-
CEIPTS.
(a) IN GENERAL.—Before entering into a new con-
tract with a present or future owner of a qualified project,
the Secretary shall encourage and, subject to the excep-
tions in subsection (d), may require—
(1) the restructuring of debt if the costs to the
Federal Government of such restructuring are less
than the costs incurred by the Federal Government
under a contract for assistance under section 8 of
the United States Housing Act of 1937 at the
project’s current debt level; and
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(2) the refinancing of all debt that is financed
at a rate 250 basis points in excess of prevailing
market rates for debt with a similar maturity.
Any project refinancing or debt restructuring shall be ac-
companied by a corresponding reduction in the maximum
monthly rents for the project. The authority of the Sec-
retary under this section to restructure or refinance mort-
gages shall be effective for any fiscal year only to such
extent or in such amounts as are or have been provided
for such costs in appropriation Acts for such fiscal year.
(b) FHA-INSURED PROJECTS.—Subject to the excep-
tions set forth in subsection (d), the Secretary shall re-
quire an owner of a project subject to a mortgage insured
by the Secretary which is to be assisted under a new con-
tract to certify that any debt that, in the determination
of the Secretary, meets the conditions of paragraph (1)
or (2) of subsection (a) will be restructured or refinanced,
as applicable.
(c) STATE-FINANCED
PROJECTS.—The Secretary
shall establish procedures to inform State agencies that
insure or finance mortgages of the provisions of this sub-
title, and shall encourage such agencies to refinance or
otherwise restructure debt which meets the conditions of
paragraph (1) or (2) of subsection (a).
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(d) EXCEPTIONS.—The Secretary shall not require
the refinancing or debt restructuring of any project, if—
(1) the project was financed through obligations
issued by a State or local housing agency or the
Government National Mortgage Association and
such refinancing or debt restructuring is inconsistent
with applicable law or agreements governing such fi-
nancing; and
(2) in the Secretary’s determination, the refi-
nancing will not result in significant savings to the
Department of Housing and Urban Development or
to the mortgagor.
(e) DISCRETIONARY ASSISTANCE.—To facilitate re-
newal consistent with this section and section 156(b), the
Secretary may, from amounts appropriated under this
subtitle—
(1) pay the owner’s nonmortgageable trans-
action costs;
(2) provide the State insuring agency or the
mortgagee with an equitable share of the savings re-
captured from the refinancing;
(3) apply a share of the savings recaptured
from the refinancing to the project’s reserves or cap-
ital expenses;
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(4) bifurcate the note to leave a first note serv-
iceable within rents reflective of the local market;
and
(5) assist in financing a project’s rehabilitation
needs through the provision of up-front grants
from—
(A) residual receipts distributed to the Sec-
retary;
(B) the budget authority provided for in-
creases in new contracts to pay for rehabilita-
tion, if the Secretary determines that the provi-
sion of such grants in addition to rental assist-
ance under section 8 of the United States
Housing Act of 1937 would be cost-effective;
and
(C) savings resulting from refinancing or
otherwise restructuring the debt.
(f) RESIDUAL RECEIPTS.—
(1) IN GENERAL.—Residual receipts distributed
to the Secretary shall be retained by the Secretary
for use under this subtitle.
(2) EXPEDITED ACQUISITION.—The Secretary
may expedite the acquisition of residual receipts for
a qualified project by entering into an agreement
with the owner of the project that provides—
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(A) for the owner to retain a portion of
any residual receipts accumulated for the
project, which shall not to exceed 15 percent of
such accumulated receipts;
(B) for the Secretary to acquire the por-
tion of the accumulated residual receipts for the
project not retained by the owner not less than
12 months before the expiration of the expiring
contract for the project, unless the Secretary
provides otherwise; and
(C) for any residual receipts accumulated
for the project after the date of the acquisition
under subparagraph (B) to be distributed to the
owner and the Secretary, and to be acquired pe-
riodically by the Secretary, in the same percent-
ages as the residual receipts for the project are
distributed pursuant to subparagraphs (A) and
(B).
SEC. 160. RETENTION OF PROGRAM SAVINGS BY SEC-
RETARY.
Any savings achieved through implementation of the
provisions of this Act, except for such savings made avail-
able to State or local housing agencies pursuant to section
159, shall be retained by the Secretary to increase afford-
able housing opportunities, in such manner as may be de-
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termined by statute, or as may be determined by the Sec-
retary.
SEC. 161. SUPPORTIVE SERVICES AND TECHNICAL ASSIST-
ANCE.
(a) PROVISION OF SERVICE COORDINATOR.—
(1) REQUIREMENT.—Each owner of a qualified
project or a project for which a new contract has
been provided shall provide, to the extent amounts
are available pursuant to paragraph (2) or another
provision of this subtitle, that the project is served
(on a full- or part-time basis in a manner approved
by the Secretary) by a service coordinator under sec-
tion 671 of the Housing and Community Develop-
ment Act of 1992. The preceding sentence shall
apply only after the expiration of the 270-day period
beginning on the date of the enactment of this Act.
(2) PAYMENT OF COSTS.—Notwithstanding any
other provision of law, the salary and other costs as-
sociated with employing a service coordinator shall
be considered an eligible project expense for a quali-
fied project which may be fully funded under the ex-
piring contract, as provided by the Secretary.
(b) TECHNICAL ASSISTANCE.—
(1) REQUIRED ASSISTANCE.—Using a portion
of any amounts in an account for residual receipts
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established for a qualified project and any amounts
made available for new contracts under this subtitle,
the Secretary shall (subject to the availability of
such amounts) provide for technical assistance for
tenants of the project (including any resident coun-
cils), nonprofit organizations, nonprofit developers of
affordable housing, and State and local govern-
mental agencies to the extent necessary to—
(A) develop the capacity and ability of such
entities to carry out activities pursuant to this
subtitle; and
(B) assist such entities in preparing sub-
missions, proposals, and such other documents
and entering into contracts, agreements, and
other arrangements involved in such activities.
(2) USE OF EXISTING PROGRAM FOR DELIV-
ERY.—The Secretary may provide technical assist-
ance under this subsection with respect to qualified
projects through the program and procedures estab-
lished under subtitle C of the Low-Income Housing
Preservation and Resident Homeownership Act of
1990 (as added by section 312 of the Housing and
Community Development Act of 1992) for technical
assistance with respect to eligible low-income hous-
ing.
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SEC. 162. DELEGATION OF AUTHORITY.
The Secretary may delegate the authority of the Sec-
retary under this subtitle, as the Secretary considers ap-
propriate, to officials of States and units of general local
government, who may also act as contract administrators
under applicable law.
SEC. 163. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘expiring contract’’ means any
contract for assistance under section 8 of the United
States Housing Act of 1937 pursuant to the author-
ity referred to in paragraph (7)(A) of this sub-
section;
(2) the term ‘‘fair market rental’’ means the
fair market rental established pursuant to the au-
thority under—
(A) section 8(c)(1) of the United States
Housing Act of 1937, as such section existed
before the date of the enactment of this Act; or
(B) section 8(e) of the United States
Housing Act of 1937, as in effect after the date
of the enactment of this Act;
(3) the terms ‘‘low-income family’’ and ‘‘very
low-income family’’ have the meanings given the
terms in section 3 of the United States Housing Act
of 1937;
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(4) the term ‘‘maximum monthly rents’’ means,
with respect to a new contract for a qualified
project, the maximum monthly rent that the owner
is entitled to receive for dwelling units in the project
assisted under the new contract;
(5) the term ‘‘new contract’’ means—
(A) a contract pursuant to this subtitle to
provide project-based assistance for a qualified
project; and
(B) a contract pursuant to the provisions
of subsection (d) or (e)(2)(B) of section 157 or
section 153(b)(5);
(6) the term ‘‘owner’’ includes the current or
subsequent owner or owners of a qualified project;
(7) the terms ‘‘qualified project’’ and ‘‘project’’
mean a multifamily housing project that—
(A) was constructed or substantially reha-
bilitated pursuant to assistance provided under
section 8(b)(2) of the United States Housing
Act of 1937, as such section existed before No-
vember 30, 1983; and
(B) is assisted under an expiring contract;
(8) the term ‘‘relevant metropolitan market
area’’ means, with respect to a qualified project, a
standard metropolitan area established by the Direc-
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tor of the Office of Management and Budget or a
portion of such an area determined appropriate by
the Secretary for purposes of this subtitle, in which
a project is located or, in the case of a project not
located in a standard metropolitan area, which is the
nearest such area to the project;
(9) the term ‘‘remaining useful life’’ means,
with respect to a qualified project, the period during
which the physical characteristics of the project re-
main in a condition suitable for occupancy, assuming
normal maintenance and repairs are made and
major systems and capital components are replaced
as becomes necessary, as determined on the record
after opportunity for a hearing, in accordance with
standards for determining when the useful life of an
eligible low-income housing project has expired that
are established by the Secretary by rule under sec-
tion 553 of title 5, United States Code;
(10) the term ‘‘resident council’’ means any
democratically operated organization of tenants of a
qualified project; and
(11) the term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
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SEC. 164. REGULATIONS.
The Secretary shall issue any final regulations nec-
essary to carry out this subtitle, which shall take effect
not later than 6 months after the date of the enactment
of this Act. The regulations shall be issued after notice
and opportunity for public comment in accordance with
the procedure under section 553 of title 5, United States
Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).
SEC. 165. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out the provisions of this
subtitle for which amounts are not provided under section
5(c) of the United States Housing Act of 1937.
Subtitle E—Homeownership
Programs
SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.
(a) AUTHORIZATION
OF
APPROPRIATIONS
AND
TECHNICAL ASSISTANCE.—
(1) IN GENERAL.—Section 402 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12870) is amended by striking subsections
(a) and (b) and inserting the following new sub-
section:
‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au-
thorized to be appropriated for grants under this title
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$100,000,000 for fiscal year 1995 and $100,000,000 for
fiscal year 1996, which shall be available for activities au-
thorized under subtitles B and C. Such amounts shall also
be available for implementation grants under title III of
the United States Housing Act of 1937, except that not
more than $25,000,000 may be used for the purpose
under this sentence and such amounts may only be used
for implementation grants to applicants who have success-
fully completed planning grants under such title. Any
amounts appropriated pursuant to this subsection shall re-
main available until expended.’’.
(b) HOPE II MATCHING REQUIREMENTS.—Section
423(c)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12873(c)) is amended by striking
‘‘33 percent’’ and inserting ‘‘25 percent’’.
(c) ELIGIBILITY UNDER HOPE III OF HOMES ON
LEASED LAND OWNED BY COMMUNITY LAND TRUSTS.—
Section 446(4) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12896(4)) is amended—
(1) by inserting ‘‘(A)’’ before ‘‘owned’’; and
(2) by inserting before the period at the end the
following: ‘‘, or (B) located on leased land owned by
a community land trust (as such term is defined in
section 233 of the HOME Investment Partnerships
Act)’’.
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SEC. 172. NATIONAL HOMEOWNERSHIP FUND.
Subtitle A of title III of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12701 note) is
amended to read as follows:
‘‘Subtitle A—National
Homeownership Fund
‘‘SEC. 301. SHORT TITLE.
‘‘This subtitle may be cited as the ‘National Home-
ownership Fund Act’.
‘‘SEC. 302. AUTHORITY.
‘‘The Secretary of Housing and Urban Development
may make grants under this subtitle to States (including
State housing finance agencies), local housing finance
agencies, and nonprofit housing intermediaries to provide
assistance, in accordance with the provisions of this sub-
title, for the acquisition of principal residences for first-
time homebuyers (including homebuyers buying shares in
limited equity cooperatives).
‘‘SEC. 303. ELIGIBLE ASSISTANCE.
‘‘A grantee may use amounts received under this sub-
title only to provide assistance to first-time homebuyers
in the following manners:
‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance
payments to provide amounts for the downpayment
(including closing costs and other costs payable at
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the time of closing) on a mortgage for the home-
buyer.
‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist-
ance payments to provide loans that have such terms
for payment of interest and principal as may be de-
termined by the grantee.
‘‘(3) CAPITALIZATION
OF
REVOLVING
LOAN
FUNDS.—To establish revolving loan funds (or to
make grants to public organizations or agencies to
establish such funds) to provide homeownership as-
sistance to eligible first-time homebuyers in accord-
ance with the provisions of this subtitle. Any grantee
under this subtitle (and any subgrantee of such a
grantee) shall provide an equal amount of local in-
vestment for such revolving loan fund and any pro-
ceeds or repayments from loans made under this
paragraph shall be returned to the revolving loan
fund established under this paragraph to be used for
purposes related to this section.
‘‘(4) INTEREST RATE BUYDOWNS.—Assistance
payments so that the rate of interest payable on a
mortgage by the homebuyer does not exceed 6 per-
cent.
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‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.
‘‘(a) HOMEBUYER.—Assistance may be provided only
to homebuyers meeting the following requirements:
‘‘(1) FIRST-TIME
HOMEBUYER.—The home-
buyer is an individual who—
‘‘(A)(i) (and whose spouse) has had no
ownership in a principal residence during the 3-
year period ending on the date of purchase of
the property with respect to which assistance
payments are made under this subtitle;
‘‘(ii) is a displaced homemaker who, except
for owning a home with his or her spouse or re-
siding in a home owned by the spouse, meets
the requirements of clause (i); or
‘‘(iii) is a single parent who, except for
owning a home with his or her spouse or resid-
ing in a home owned by the spouse while mar-
ried, meets the requirements of clause (i); and
‘‘(B) meets the requirements of subpara-
graph (A)(i), (ii), or (iii), except for owning, as
a principal residence, a dwelling unit whose
structure is not permanently affixed to a per-
manent foundation in accordance with local or
other applicable regulations.
‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The
aggregate annual income of the homebuyer and the
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members of the family of the homebuyer residing
with the homebuyer, for the 12-month period preced-
ing the date of the application of the homebuyer for
assistance under this subtitle, does not exceed 115
percent of the median income for a family of 4 per-
sons (adjusted by family size) in the applicable met-
ropolitan statistical area (or such other area that the
Secretary determines for areas outside of metropoli-
tan statistical areas). The Secretary shall provide for
certification of such income for purposes of initial
eligibility for assistance payments under this sub-
title.
‘‘(b) MORTGAGE.—Assistance may be provided only
for mortgages meeting the following requirements:
‘‘(1) PRINCIPAL
RESIDENCE.—The property
subject to the mortgage is a single-family residence
or unit in a cooperative (including any manufactured
home park owned by residents or owned by nonprofit
organizations for future ownership by residents) or
condominium, or a single family residence located on
leased land owned by a community land trust, and
is the principal residence of the homebuyer.
‘‘(2) 
MAXIMUM
MORTGAGE
AMOUNT.—The
principal obligation of the first mortgage and any
second mortgage assistance provided under this sub-
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title does not exceed the principal amount that could
be insured under section 203(b) of the National
Housing Act with respect to a property having the
same number of dwelling units.
‘‘(c) 
MINIMUM
DOWNPAYMENT.—For 
first-time
homebuyers to receive downpayment assistance under sec-
tion 303(a)(1), the homebuyer shall have paid not less
than 1 percent of the cost of acquisition of the property
(excluding any mortgage insurance premiums paid at the
time the mortgage is insured), as such cost is estimated
by the Secretary.
‘‘SEC. 305. COUNSELING REQUIREMENTS.
‘‘Each grantee under this subtitle shall ensure that
each homebuyer receiving assistance under this subtitle
from the grantee (or any subgrantee of such grantee) shall
be provided prepurchase and postpurchase homeownership
counseling from individuals certified by the Secretary
under section 106(e) of the Housing and Urban Develop-
ment Act of 1968.
‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may make a grant
under this subtitle only to a State (including a State hous-
ing finance agency), local housing finance agency, or non-
profit housing intermediary that submits to the Secretary
an application under this section that is approved by the
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Secretary. Applications shall be made in such form and
in accordance with such procedures as the Secretary shall
establish.
‘‘(b) MINIMUM
REQUIREMENTS.—An application
under this section shall contain a plan that describes how
the applicant will achieve the objectives of this subtitle.
The application shall include—
‘‘(1) a description of the geographic area, in-
cluding the revitalization area included, to be cov-
ered by the program to provide assistance under this
subtitle;
‘‘(2) the characteristics of the households to be
served by the program;
‘‘(3) a description and evidence of the commit-
ment of other public and private resources to be
made available in the revitalization area and other
areas in which homebuyers receive assistance under
this subtitle;
‘‘(4) a description of any secondary market and
private mortgage insurance involvement and commit-
ment in connection with assistance under this sub-
title;
‘‘(5) a description of how prepurchase and
postpurchase counseling will be provided to home-
buyers assisted under this subtitle;
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‘‘(6) a description of any restrictions on resale
and profits;
‘‘(7) a description of existing affordable housing
programs and resources available to undertake reha-
bilitation of properties when needed;
‘‘(8) a description of the process for award and
disbursement of assistance to homebuyers; and
‘‘(9) a description of the history of the appli-
cant in undertaking similar projects.
‘‘(c) SELECTION.—The Secretary shall allocate
amounts available in any fiscal year for assistance under
this subtitle to States (including State housing finance
agencies), local housing finance agencies, or nonprofit
housing intermediaries for homebuyers through a national
competition in accordance with criteria established by the
Secretary. The criteria shall include the extent to which
the applicant has experience in providing homeownership
opportunities for low- and moderate-income households.
‘‘(d) TARGETING
FOR REVITALIZATION AREAS.—
Each grantee under this subtitle shall use not more than
50 percent of any amounts received under this subtitle for
assistance under section 303(a) for homebuyers purchas-
ing residences in revitalization areas using mortgages in-
sured under section 203(b) of the National Housing Act.
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‘‘SEC. 307. REPORT.
‘‘Not later than 18 months after the date of the issu-
ance of final regulations pursuant to section 310, the Sec-
retary shall submit to the Congress a report stating the
amount of loans made in revitalization areas and in other
areas, the amount of loans insured under the National
Housing Act made in connection with assistance under
this section and the amount of privately insured loans
made in connection with such assistance, and an analysis
of the effectiveness of such assistance in assisting first-
time homebuyers.
‘‘SEC. 308. DEFINITIONS.
‘‘For purposes of this subtitle:
‘‘(1) 
ASSISTANCE.—The 
term 
‘assistance’
means—
‘‘(A) any downpayment assistance provided
under section 303(1);
‘‘(B) any second mortgage loan provided
under section 303(2);
‘‘(C) any loan provided from a revolving
fund established under section 303(3); and
‘‘(D) any payment for buydown of an in-
terest rate provided under section 303(4).
‘‘(2) COMMUNITY
LAND
TRUST.—The term
‘community land trust’ has the meaning given the
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term in section 233 of the Cranston-Gonzalez Na-
tional Affordable Housing Act.
‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis-
placed homemaker’ means an individual who—
‘‘(A) is an adult;
‘‘(B) has not worked full-time, full-year in
the labor force for a number of years, but has
during such years, worked primarily without re-
muneration to care for the home and family;
and
‘‘(C) is unemployed or underemployed and
is experiencing difficulty in obtaining or up-
grading employment.
‘‘(4) REVITALIZATION AREA.—The term ‘revi-
talization area’ means—
‘‘(A) an empowerment zone or enterprise
community approved under Subchapter U of
Chapter 1 of the Internal Revenue Code of
1986, or an equivalent State-approved enter-
prise zone; and
‘‘(B) a neighborhood that, in the deter-
mination of the Secretary, is targeted by a unit
of general local government for revitalization
using coordinated affordable housing programs
and enhanced supportive services.
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‘‘(5) NONPROFIT
HOUSING
INTERMEDIARY.—
The term ‘nonprofit housing intermediary’ means a
nonprofit organization that the Secretary determines
has among its principal purposes activities described
in clauses (1) and (2) of section 802(a) of the Hous-
ing and Community Development Act of 1974.
‘‘(6) SINGLE PARENT.—The term ‘single par-
ent’ means an individual who—
‘‘(A) is unmarried or legally separated
from a spouse; and
‘‘(B)(i) has 1 or more minor children for
whom the individual has custody or joint cus-
tody; or
‘‘(ii) is pregnant.
‘‘(7) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(8) STATE.—The term ‘State’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
‘‘(9) STATE HOUSING FINANCE AGENCY.—The
term ‘State housing finance agency’ has the meaning
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given the term in section 802(b) of the Housing and
Community Development Act of 1974.
‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The
term ‘local housing finance agency’ means a housing
finance agency of any city, county, town, township,
parish, village, or other general purpose subdivision
of a State, or of any combination of such political
subdivisions recognized by the Secretary, or any
other agency or instrumentality of such an entity
that carries out activities described in section 303.
‘‘SEC. 309. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for assist-
ance under this subtitle $115,000,000 for fiscal year 1995
and $215,000,000 for fiscal year 1996. Any amount ap-
propriated under this section shall remain available until
expended.
‘‘SEC. 310. REGULATIONS.
‘‘Not later than 10 days after the date of the enact-
ment of the Housing and Community Development Act
of 1994, the Secretary shall issue an interim rule to imple-
ment this subtitle. The Secretary shall issue final regula-
tions necessary to implement this subtitle not later than
90 days after issuance of such interim rule.’’.
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SEC. 173. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act (12
U.S.C. 1715z(r)) is amended—
(1) in paragraph (2)(C), by inserting after ‘‘re-
financed’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate
as permitted by subparagraph (E) or paid by the
Secretary as authorized by paragraph (4)(B)’’;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by inserting after ‘‘otherwise)’’ the follow-
ing: ‘‘and the mortgagee (with respect to the
amount described in subparagraph (A))’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortga-
gee’’; and
(3) by amending paragraph (5) to read as fol-
lows:
‘‘(5) The Secretary shall use amounts of budget au-
thority recaptured from assistance payments contracts re-
lating to mortgages that are being refinanced for assist-
ance payments contracts with respect to mortgages in-
sured under this subsection. The Secretary may also make
such recaptured amounts available for incentives under
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paragraph (4)(A) and the costs incurred in connection
with the refinancing under paragraph (4)(B). For pur-
poses of subsection (c)(3)(A), the amount of recaptured
budget authority that the Secretary commits for assist-
ance payments contracts relating to mortgages insured
under this subsection and for amounts paid under para-
graph (4) shall not be construed as unused.’’.
SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP
AND RENTAL HOUSING CHOICE.
(a) EXTENSIONS OF PROGRAMS.—
(1) EMERGENCY
HOMEOWNERSHIP
COUNSEL-
ING.—Section 106(c)(9) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is
amended by striking ‘‘September 30, 1994’’ and in-
serting ‘‘September 30, 1996’’.
(2) PREPURCHASE AND FORECLOSURE-PREVEN-
TION
COUNSELING
DEMONSTRATION.—Section
106(d)(13) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended
by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal
year 1996’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
106 of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701x) is amended—
(1) in subsection (a), by striking paragraph (3);
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(2) in subsection (c)—
(A) by striking paragraph (8); and
(B) by redesignating paragraph (9) (as
amended by subsection (a)) as paragraph (8);
(3) in subsection (d)—
(A) by striking paragraph (12); and
(B) by redesignating paragraph (13) (as
amended by subsection (a)) as paragraph (12);
(4) in subsection (f), by striking paragraph (7);
and
(5) by adding at the end the following new sub-
section:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$62,000,000 for fiscal year 1995 and $65,000,000 for fis-
cal year 1996, of which amounts $30,000,000 shall be
available in each such fiscal year to carry out subsection
(c). Any amounts appropriated pursuant to this subsection
shall remain available until expended.’’.
(c) OUTREACH.—Section 106(a) of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701x(a)) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘The’’ and inserting ‘‘AC-
TIVITIES.—The’’;
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(B) in the matter preceding clause (i), by
inserting ‘‘or consortia of organizations’’ after
‘‘organizations’’;
(C) in clause (iii), by striking ‘‘and’’ at the
end;
(D) in clause (iv), by striking the period at
the end and inserting a semicolon; and
(E) by inserting at the end the following
new clauses:
‘‘(v) the provision of outreach activities de-
signed to improve the access of low- and moderate-
income households to homeownership and sources of
mortgage credit;
‘‘(vi) the provision of counseling to applicants
for and recipients of tenant-based assistance to en-
able such families to move to areas of mixed in-
comes; and
‘‘(vii) counseling and advice to tenants and
homeowners regarding understanding financial prac-
tices, matters, and transactions commonly engaged
in by, or involving, tenants and homeowners, includ-
ing activities and services provided by banks and
other financial institutions, extension of credit,
standard lending practices, checking accounts and
check cashing, and savings accounts, which shall be
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made available in such manners and languages ap-
propriate for low-income and disadvantaged families
residing in the area in which the entity providing the
counseling and advice is located.’’;
(2) in paragraph (2)—
(A) by striking ‘‘The’’ and inserting ‘‘ELI-
GIBLE HOMEOWNERS.—The’’; and
(B) in the second sentence, by inserting
‘‘or consortia of organizations’’ after ‘‘organiza-
tions’’; and
(3) by inserting after paragraph (2) the follow-
ing new paragraphs:
‘‘(3) HOMEOWNERSHIP
COUNSELING.—The Sec-
retary of Housing and Urban Development may contract
with national, State, or community-based entities (includ-
ing local community action agencies receiving assistance
under the Community Services Block Grant Act), and con-
sortia of such entities, and local public or private organiza-
tions (including public housing agencies), to carry out ac-
tivities under paragraph (1)(v). Contractors shall be se-
lected on a competitive basis, in accordance with selection
criteria determined by the Secretary. The contractors shall
carry out activities prescribed by the Secretary, including
activities such as—
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‘‘(A) assisting homebuyers by working with
mortgage lending entities to make mortgage credit
available to low- and moderate-income homebuyers;
‘‘(B) leveraging Federal funds with other
sources of funding to support activities under its
counseling program, including leveraging private,
community-based resources for the purpose of assist-
ing prospective mortgagors achieve homeownership;
‘‘(C) conducting outreach and marketing to
prospective homebuyers, particularly homebuyers in
targeted neighborhoods with a high proportion of
low- and moderate-income and minority renter
households;
‘‘(D) coordinating a prepurchase homeowner-
ship strategy that includes linking other counseling
providers and community-based organizations ap-
proved by the Secretary, assisting prospective home-
buyers to repair credit, educating potential home-
buyers on the requirements of homeownership, pro-
viding technical assistance, assisting in the packag-
ing of mortgage loan applications, and matching a
family’s resources with appropriate government and
private sector homeownership assistance programs;
and
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‘‘(E) creating post-purchase counseling pro-
grams that include default-prevention counseling to
assist homebuyers to retain their homes.
‘‘(4) RENTAL COUNSELING.—The Secretary of Hous-
ing and Urban Development may contract with national,
State, or community-based entities (including local com-
munity action agencies receiving assistance under the
Community Services Block Grant Act), and consortia of
such entities, and local public or private organizations (in-
cluding public housing agencies), to carry out activities
under paragraph (1)(vi). Contractors shall be selected on
a competitive basis, in accordance with selection criteria
determined by the Secretary. The contractors shall carry
out activities prescribed by the Secretary, including activi-
ties such as—
‘‘(A) advising families on strategies for obtain-
ing appropriate housing;
‘‘(B) providing transportation assistance and
other services to give families access to areas with-
out high concentrations of persons living in poverty;
‘‘(C) continuing advice and counseling to assist
families after moving to areas without high con-
centrations of persons living in poverty; and
‘‘(D) undertaking aggressive outreach to poten-
tial owners to expand the availability of housing in
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areas without high concentrations of persons living
in poverty.
Each entity receiving assistance pursuant to this para-
graph shall make counseling and assistance under this
paragraph available to low-income families who are re-
ferred to the entity pursuant to section 8(s)(2) of the
United States Housing Act of 1937, including counseling
and assistance regarding housing opportunities in the area
of jurisdiction of the public housing agency involved and
assistance in obtaining new rental residences in areas
within such jurisdiction not having high concentrations of
persons living in poverty.’’.
(d) NOTIFICATION.—Subparagraph (C) of section
106(c)(5) of the Housing and Urban Development Act of
1968 is amended to read as follows:
‘‘(C) NOTIFICATION.—Notification under
subparagraph (A) shall not be required with re-
spect to any loan for which the eligible home-
owner pays the amount overdue before the expi-
ration of the 45-day period under subparagraph
(B)(ii).’’.
Subtitle F—Other Programs
SEC. 181. COMMUNITY PARTNERSHIPS AGAINST CRIME.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—Chapter 2 of subtitle C of title V of the
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Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)
is amended by striking the chapter heading and all that
follows through section 5123 and inserting the following:
‘‘CHAPTER 2—COMMUNITY
PARTNERSHIPS AGAINST CRIME
‘‘SEC. 5121. SHORT TITLE.
‘‘This chapter may be cited as the ‘Community Part-
nerships Against Crime Act of 1994’.
‘‘SEC. 5122. PURPOSES.
‘‘The purposes of this chapter are to—
‘‘(1) improve the quality of life for the vast ma-
jority of law-abiding public housing residents by re-
ducing the levels of fear, violence, and crime in their
communities;
‘‘(2) substantially expand and enhance the Fed-
eral Government’s commitment to eliminating crime
in and around public housing and other federally as-
sisted low-income housing;
‘‘(3) broaden the scope of the Public and As-
sisted Housing Drug Elimination Act of 1990 to
apply to all types of crime, and not simply crime
that is drug-related;
‘‘(4) encourage the involvement of a broad
range of community-based groups and residents of
neighboring housing that is owned or assisted by the
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Secretary in the development and implementation of
anti-crime plans;
‘‘(5) reduce crime and disorder in and around
public housing through the expansion of community-
oriented policing activities and problem solving;
‘‘(6) provide training, information services, and
other technical assistance to program participants;
and
‘‘(7) establish a standardized assessment sys-
tem to evaluate need among public housing agencies
and to measure progress in reaching crime reduction
goals.
‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.
‘‘The Secretary of Housing and Urban Development
may make grants in accordance with the provisions of this
chapter for use in eliminating crime in and around public
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-
income housing. In designing the program for grants
under this chapter, the Secretary shall consult with the
Attorney General.’’.
(b) ELIGIBLE ACTIVITIES.—
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(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, including fenc-
ing, lighting, locking, and surveillance systems’’;
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income
housing projects’’; and
(ii) by striking ‘‘and’’ after the semi-
colon; and
(E) by striking paragraph (7) and insert-
ing the following new paragraphs:
‘‘(7) providing funding to nonprofit public hous-
ing resident management corporations and resident
councils to develop security and crime prevention
programs involving site residents;
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‘‘(8) the employment or utilization of one or
more individuals, including law enforcement officers,
made available by contract or other cooperative ar-
rangement with State or local law enforcement agen-
cies, to engage in community- and problem-oriented
policing involving interaction with members of the
community in proactive crime control and prevention
activities;
‘‘(9) programs and activities for or involving
youth, including training, education, recreation and
sports, career planning, and entrepreneurship and
employment activities and after school and cultural
programs; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, drug and alco-
hol treatment, and other appropriate social serv-
ices.’’.
(2) OTHER
PHA-OWNED
HOUSING.—Section
5124(b) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11903(b)) is amended—
(A) in the matter preceding paragraph
(1)—
(i) by striking ‘‘drug-related crime in’’
and inserting ‘‘crime in and around’’; and
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(ii) 
by 
striking 
‘‘paragraphs 
(1)
through (7)’’ and inserting ‘‘paragraphs
(1) through (10)’’; and
(B) in paragraph (2), by striking ‘‘drug-re-
lated’’ and inserting ‘‘criminal’’.
(c) GRANT PROCEDURES.—Section 5125 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended
to read as follows:
‘‘SEC. 5125. GRANT PROCEDURES.
‘‘(a) PHA’S WITH 250 OR MORE UNITS.—
‘‘(1) GRANTS.—In each fiscal year, the Sec-
retary shall make a grant under this chapter from
any amounts available under section 5131(b)(1) for
the fiscal year to each of the following public hous-
ing agencies:
‘‘(A) 
NEW
APPLICANTS.—Each 
public
housing agency that owns or operates 250 or
more public housing dwelling units and has—
‘‘(i) submitted an application to the
Secretary for a grant for such fiscal year,
which includes a 5-year crime deterrence
and reduction plan under paragraph (2);
and
‘‘(ii) had such application and plan
approved by the Secretary.
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‘‘(B) RENEWALS.—Each public housing
agency that owns or operates 250 or more pub-
lic housing dwelling units and for which—
‘‘(i) a grant was made under this
chapter for the preceding Federal fiscal
year;
‘‘(ii) the term of the 5-year crime de-
terrence and reduction plan applicable to
such grant includes the fiscal year for
which the grant under this subsection is to
be made; and
‘‘(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the preceding
fiscal year the agency has substantially ful-
filled the requirements under subpara-
graphs (A) and (B) of paragraph (4).
‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC-
TION
PLAN.—Each application for a grant under
this subsection shall contain a 5-year crime deter-
rence and reduction plan. The plan shall describe,
for the public housing agency submitting the plan—
‘‘(A) the nature of the crime problem in
public housing owned or operated by the public
housing agency;
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‘‘(B) the building or buildings of the public
housing agency affected by the crime problem;
‘‘(C) the impact of the crime problem on
residents of such building or buildings; and
‘‘(D) the actions to be taken during the
term of the plan to reduce and deter such
crime, which shall include actions involving resi-
dents, law enforcement, and service providers.
The term of a plan shall be the period consisting of
5 consecutive fiscal years, which begins with the first
fiscal year for which funding under this chapter is
provided to carry out the plan.
‘‘(3) AMOUNT.—In any fiscal year, the amount
of the grant for a public housing agency receiving a
grant pursuant to paragraph (1) shall be the
amount that bears the same ratio to the total
amount made available under section 5131(b)(1) as
the total number of public dwelling units owned or
operated by such agency bears to the total number
of dwelling units owned or operated by all public
housing agencies that own or operate 250 or more
public housing dwelling units that are approved for
such fiscal year.
‘‘(4) PERFORMANCE REVIEW.—For each fiscal
year, the Secretary shall conduct a performance re-
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view of the activities carried out by each public
housing agency receiving a grant pursuant to this
subsection to determine whether the agency—
‘‘(A) has carried out such activities in a
timely manner and in accordance with its 5-
year crime deterrence and reduction plan; and
‘‘(B) has a continuing capacity to carry
out such plan in a timely manner.
‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec-
retary shall establish such deadlines and require-
ments for submission of applications under this sub-
section as the Secretary determines appropriate for
timely and orderly allocation and disbursement of
amounts made available for grants under this sub-
section.
‘‘(6) REVIEW AND DETERMINATION.—The Sec-
retary shall review each application submitted under
this subsection upon submission and shall approve
the application unless the application and the 5-year
crime deterrence and reduction plan are inconsistent
with the purposes of this chapter or any require-
ments established by the Secretary or the informa-
tion in the application or plan is not substantially
complete. Upon approving or determining not to ap-
prove an application and plan submitted under this
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subsection, the Secretary shall notify the public
housing agency submitting the application and plan
of such approval or disapproval.
‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the
Secretary notifies an agency that the application and
plan of the agency is not approved, not later than
the expiration of the 15-day period beginning upon
such notice of disapproval, the Secretary shall also
notify the agency, in writing, of the reasons for the
disapproval, the actions that the agency could take
to comply with the criteria for approval, and the
deadlines for such actions.
‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—
If the Secretary fails to notify an agency of approval
or disapproval of an application and plan submitted
under this subsection before the expiration of the
60-day period beginning upon the submission of the
plan or fails to provide notice under paragraph (7)
within the 15-day period under such paragraph to
an agency whose application has been disapproved,
the application and plan shall be considered to have
been approved for purposes of this section.
‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND
OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS-
ING.—
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‘‘(1) APPLICATIONS AND PLANS.—To be eligible
to receive a grant under this chapter, a public hous-
ing agency that owns or operates fewer than 250
public housing dwelling units or an owner of feder-
ally assisted low-income housing shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and accompanied by such additional information
as the Secretary may require. The application shall
include a plan for addressing the problem of crime
in and around the housing for which the application
is submitted, describing in detail activities to be con-
ducted during the fiscal year for which the grant is
requested.
‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN
250 UNITS.—In each fiscal year the Secretary may,
to the extent amounts are available under section
5131(b)(2), make grants under this chapter to pub-
lic housing agencies that own or operate fewer than
250 public housing dwelling units and have submit-
ted applications under paragraph (1) that the Sec-
retary has approved pursuant to the criteria under
paragraph (4).
‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-
INCOME HOUSING.—In each fiscal year the Secretary
may, to the extent amounts are available under sec-
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tion 5131(b)(3), make grants under this chapter to
owners of federally assisted low-income housing that
have submitted applications under paragraph (1)
that the Secretary has approved pursuant to the cri-
teria under paragraphs (4) and (5).
‘‘(4) CRITERIA
FOR
APPROVAL
OF
APPLICA-
TIONS.—The Secretary shall determine whether to
approve each application under this subsection on
the basis of—
‘‘(A) the extent of the crime problem in
and around the housing for which the applica-
tion is made;
‘‘(B) the quality of the plan to address the
crime problem in the housing for which the ap-
plication is made;
‘‘(C) the capability of the applicant to
carry out the plan; and
‘‘(D) the extent to which the tenants of the
housing, the local government, local community-
based nonprofit organizations, local tenant or-
ganizations representing residents of neighbor-
ing projects that are owned or assisted by the
Secretary, and the local community support and
participate in the design and implementation of
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the activities proposed to be funded under the
application.
In each fiscal year, the Secretary may give pref-
erence to applications under this subsection for
housing made by applicants who received a grant for
such housing for the preceding fiscal year under this
subsection or under the provisions of this chapter as
in effect immediately before the date of the enact-
ment of the Housing and Community Development
Act of 1994.
‘‘(5) ADDITIONAL
CRITERIA
FOR
FEDERALLY
ASSISTED
LOW-INCOME
HOUSING.—In addition to
the selection criteria under paragraph (4), the Sec-
retary may establish other criteria for evaluating ap-
plications submitted by owners of federally assisted
low-income housing, except that such additional cri-
teria shall be designed only to reflect—
‘‘(A) relevant differences between the fi-
nancial resources and other characteristics of
public housing authorities and owners of feder-
ally assisted low-income housing; or
‘‘(B) relevant differences between the prob-
lem of crime in public housing administered by
such public housing agencies and the problem
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of crime in federally assisted low-income hous-
ing.’’.
(d) DEFINITIONS.—Section 5126 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11905) is amended—
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4), by striking ‘‘section’’ be-
fore ‘‘221(d)(4)’’;
(3) by redesignating paragraphs (3) and (4) (as
so amended) as paragraphs (1) and (2), respectively;
and
(4) by adding at the end the following new
paragraph:
‘‘(3) PUBLIC
HOUSING
AGENCY.—The term
‘public housing agency’ has the meaning given the
term in section 3(b) of the United States Housing
Act of 1937.’’.
(e) IMPLEMENTATION.—Section 5127 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended
by striking ‘‘Cranston-Gonzalez National Affordable
Housing Act’’ and inserting ‘‘Housing and Community
Development Act of 1994’’.
(f) REPORTS.—Section 5128 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11907) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
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‘‘(a) REPORTS BY GRANTEES.—The Secretary’’;
(2) by striking ‘‘drug-related crime in’’ and in-
serting ‘‘crime in and around’’;
(3) by striking ‘‘described in section 5125(a)’’
and inserting ‘‘for the grantee submitted under sub-
section (a) or (b) of section 5125, as applicable’’;
and
(4) by adding at the end the following new sub-
section:
‘‘(b) REPORTS BY SECRETARY.—For each fiscal year
in which the Secretary makes grants under this chapter,
the Secretary shall submit a report to the Congress de-
scribing the progress achieved in crime deterrence and re-
duction in the public housing and federally assisted low-
income housing for which such grant assistance has been
provided. The report shall include any recommendations
of the Secretary for changes in the program of assistance
under this chapter.’’.
(g) TECHNICAL ASSISTANCE AND FUNDING.—Chap-
ter 2 of subtitle C of title V of the Anti-Drug Abuse Act
of 1988 is amended by striking section 5130 (42 U.S.C.
11909) and inserting the following new sections:
‘‘SEC. 5130. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—To the extent amounts are made
available under section 5131(c), the Secretary may provide
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training, information services, and other technical assist-
ance to public housing agencies and other entities with re-
spect to their participation in the program under this
chapter, which shall include activities under subsection (b)
of this section. Such technical assistance may be provided
directly by the Secretary or indirectly pursuant to grants,
contracts, or cooperative agreements.
‘‘(b) USE.—The Secretary may use amounts available
for use under this section—
‘‘(1) to establish and operate the clearinghouse
on drug abuse in public housing and the regional
training program on drug abuse in public housing
under sections 5143 and 5144 of this Act;
‘‘(2) to obtain assistance in establishing and
managing assessment and evaluation criteria and
specifications and to obtain the opinions of experts
in relevant fields; and
‘‘(3) upon the request of a public housing agen-
cy, to assist the agency in evaluating the extent of
the crime problem in any public housing adminis-
tered by the agency and preparing a 5-year crime
deterrence and reduction plan under section 5125(a)
or an application and plan under section 5125(b)(1),
which assistance may include providing personnel
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and funding to identify and secure local resources to
assist in deterring and reducing crime.
‘‘(c) PRIORITY.—In selecting entities to receive tech-
nical assistance under this section, the Secretary shall give
priority to public housing agencies that have submitted ap-
plications and plans under section 5125 that the Secretary
has determined do not meet the requirements for approval
for assistance under this chapter.
‘‘SEC. 5131. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this chapter
$300,000,000 for fiscal year 1995 and $325,000,000 for
fiscal year 1996. Any amount appropriated under this sub-
section shall remain available until expended.
‘‘(b) ALLOCATION.—Of any amounts available, or
that the Secretary is authorized to use, to carry out this
chapter in any fiscal year that remain after reserving
amounts for use under subsection (c)—
‘‘(1) 85 percent shall be available only for as-
sistance pursuant to section 5125(a) to public hous-
ing agencies that own or operate 250 or more public
housing dwelling units;
‘‘(2) 10 percent shall be available only for as-
sistance pursuant to section 5125(b)(2) to public
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housing agencies that own or operate fewer than 250
public housing dwelling units; and
‘‘(3) 5 percent shall be available only for assist-
ance to federally assisted low-income housing pursu-
ant to section 5125(b)(3).
Any other provision of law enacted before or after the date
of the enactment of the Housing and Community Develop-
ment Act of 1994 that limits the authority of the Sec-
retary to use amounts to carry out this chapter upon the
apportionment of such amounts in a manner not provided
for in this subsection shall not be effective.
‘‘(c) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of
any amount made available in fiscal years 1994 and 1995
to carry out this chapter, the Secretary shall use not more
than $10,000,000 in each such fiscal year to provide tech-
nical assistance under section 5130.’’.
(h) CONFORMING AMENDMENTS.—The table of con-
tents in section 5001 of the Anti-Drug Abuse Act of 1988
(Public Law 100–690; 102 Stat. 4295) is amended—
(1) by striking the item relating to the heading
for chapter 2 of subtitle C and inserting the follow-
ing:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
(2) by striking the item relating to section 5122
and inserting the following new item:
‘‘Sec. 5122. Purposes.’’;
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(3) by striking the item relating to section 5125
and inserting the following new item:
‘‘Sec. 5125. Grant procedures.’’;
and
(4) by striking the item relating to section 5130
and inserting the following new items:
‘‘Sec. 5130. Technical Assistance.
‘‘Sec. 5131. Funding.’’.
SEC. 182. LOW-INCOME HOUSING PRESERVATION.
(a) ASSISTANCE AND INCENTIVES.—Section 234 of
the Housing and Community Development Act of 1987
(12 U.S.C. 4124) is amended to read as follows:
‘‘SEC. 234. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated for assistance and incentives authorized under
this subtitle $358,000,000 for fiscal year 1995 and
$450,000,000 for fiscal year 1996.
‘‘(b) GRANTS.—Subject to approval in appropriation
Acts, not more than $40,000,000 of the amounts made
available under subsection (a) for fiscal year 1995, and
not more than $40,000,000 of the amounts made available
under subsection (a) for fiscal year 1996, shall be available
for grants under section 221(d)(2).’’.
(b) TECHNICAL ASSISTANCE AND CAPACITY BUILD-
ING.—The first sentence of section 257 of the Housing
and Community Development Act of 1987 (12 U.S.C.
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4147) is amended to read as follows: ‘‘The Secretary shall
use not more than $20,000,000 of the amounts made
available under section 234(a) for fiscal year 1995, and
not more than $20,000,000 of the amounts made available
under section 234(a) for fiscal year 1996, to carry out
this subtitle.’’.
(c) REPEAL OF RENT LIMITATIONS.—The National
Housing Act is amended—
(1) in section 221 (12 U.S.C. 1715l), by strik-
ing subsection (l).
(2) in section 236(f) (12 U.S.C. 1715z–1(f)),
by striking paragraph (6).
(d) EQUITY LOANS.—Section 241(f)(2)(B)(ii) of the
National Housing Act (12 U.S.C. 1715z–6(f)(2)(B)(ii)) is
amended by inserting ‘‘(excluding the amount of rehabili-
tation costs required by the plan of action and related
charges)’’ after ‘‘loan amount’’.
(e) TREATMENT AS ELIGIBLE HOUSING.—Notwith-
standing section 229(1)(B) of the Housing and Commu-
nity Development Act of 1987, the Northwest Towers
project, located at 1170 West Erie, in Chicago, Illinois,
shall be considered eligible low-income housing for pur-
poses of title II of such Act, except that—
(1) the Secretary of Housing and Urban Devel-
opment may approve a plan of action under such
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title for the project only if the plan of action (A)
provides for transfer of the ownership of the project
(i) in accordance with section 226 of such title to a
resident council of the project, or (ii) in accordance
with section 220 of such title to a community-based
nonprofit organization approved by the residents of
the project, and (B) otherwise complies with the re-
quirements of such title; and
(2) the Secretary of Housing and Urban Devel-
opment shall reduce the aggregate amount of any in-
centives otherwise to be provided under such title for
the project by the amount of any outstanding in-
debtedness on the loan for the project under section
201 of the Housing and Community Development
Amendments of 1978.
SEC. 183. FLEXIBLE SUBSIDY PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
201(j)(5) of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is
amended to read as follows:
‘‘(5) There are authorized to be appropriated for as-
sistance under the flexible subsidy fund not to exceed
$50,000,000 for fiscal year 1995 and $55,000,000 for fis-
cal year 1996.’’.
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(b) ALLOCATION.—Section 201(n)(2)(B)(ii) of the
Housing and Community Development Amendments of
1978 (12 U.S.C. 1715z–1a(n)(2)(B)(ii)) is amended by in-
serting ‘‘and federally assisted’’ before ‘‘mortgages’’.
(c) USE
OF SECTION 236 RENTAL ASSISTANCE
FUND AMOUNTS.—Section 236(f)(3) of the National
Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by
striking ‘‘September 30, 1994’’ and inserting ‘‘September
30, 1996’’.
SEC. 184. YOUTHBUILD PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
402 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12870), as amended by the preceding
provisions of this title, is amended by inserting after sub-
section (a) the following new subsection:
‘‘(b) YOUTHBUILD PROGRAM.—There are authorized
to be appropriated for activities under subtitle D
$50,000,000 for fiscal year 1995 and $50,000,000 for fis-
cal year 1996. Any amounts appropriated pursuant to this
subsection shall remain available until expended.’’.
(b) ELIGIBLE ACTIVITIES.—Section 454(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899c(b)) is amended—
(1) in paragraph (2), by striking ‘‘Acquisition’’
and all that follows through ‘‘facilities’’ and insert-
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ing ‘‘Acquisition, rehabilitation, or acquisition and
rehabilitation of housing and related facilities, or
construction of new housing and related facilities
(including community facilities designed to serve the
needs of low- and very low-income families),’’;
(2) by striking paragraph (6); and
(3) by redesignating paragraphs (7) and (8) as
paragraphs (6) and (7), respectively.
(c) PRIORITY
FOR APPLICANTS SUPPLEMENTING
GRANT AMOUNTS.—Section 454(e) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
12899c(e)) is amended to read as follows:
‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN PRO-
GRAM FUNDS FROM OTHER SOURCES.—The Secretary
shall give priority in the award of grants under this section
to applicants to the extent that they have obtained
amounts or in-kind contributions, or commitments to pro-
vide such amounts or contributions, from Federal, State,
local, or private sources other than assistance under this
subtitle in an amount constituting not less than 10 percent
of the total budget of the applicant for the Youthbuild pro-
gram, that will be used for carrying out any aspect of the
Youthbuild program of the applicant.’’.
(d) RESIDENTIAL
RENTAL
HOUSING
REQUIRE-
MENTS.—Section 455(a) of the Cranston-Gonzalez Na-
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tional Affordable Housing Act (42 U.S.C. 12899d(a)) is
amended—
(1) in the matter preceding paragraph (1), by
inserting after ‘‘subtitle’’ the following: ‘‘for costs
such as construction, rehabilitation, and acquisi-
tion’’; and
(2) in paragraph (1), by striking subparagraph
(A) and inserting the following new subparagraph:
‘‘(A) at least 80 percent of the units shall
be occupied, or available for occupancy, by indi-
viduals and families with incomes that do not
exceed 50 percent of the area median income,
adjusted for family size; and’’.
(e) RESERVATION OF FUNDS.—Section 458(d) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899g(d)) is amended by inserting before the pe-
riod at the end the following: ‘‘and not more than 1 per-
cent of such available amounts to implement, pursuant to
subsection (a) of this section, a management information
system to gather and analyze information necessary to as-
sess the quality and effects of the program under this sub-
title and to monitor Youthbuild programs funded under
this subtitle’’.
(f) PROGRAM NAME.—The heading for subtitle D of
title IV of the Cranston-Gonzalez National Affordable
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Housing Act (42 U.S.C. 12899 et seq.) is amended to read
as follows:
‘‘Subtitle D—Youthbuild’’.
SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY
HOUSING PROPERTIES.
Section 203(g) of the Housing and Community De-
velopment Amendments of 1978 (12 U.S.C. 1701z–11(g))
is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’;
(3) by redesignating paragraphs (2) and (3) (as
so amended) as paragraphs (3) and (4), respectively;
(4) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) upon the conclusion of the first year of
such 2-year period, the Secretary shall examine the
income and rent of the family and of other very low-
income families who are preexisting tenants of the
project and the rents charged for units in the project
and for similar units in the market area in which
the project is located, to determine whether upon the
expiration of such 2-year period the rent charged for
the unit occupied by the family and for similar units
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in the same market area will be significantly more
than the amount charged for the unit occupied by
the family during such 2-year period;’’; and
(5) by adding at the end the following new
paragraph:
‘‘(5) if the Secretary determines pursuant to
paragraph (2) that, upon the expiration of the 2-
year period, the family will not be able to rent a unit
in the project or a similar unit in the market area
in which the project is located without paying in rent
significantly more than the amount charged for the
unit occupied by the family during such 2-year pe-
riod, the Secretary shall, to the extent budget au-
thority is available, provide tenant-based assistance
on behalf of the family under a contract under sec-
tion 8 of the United States Housing Act of 1937
having a 5-year term.’’.
SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND
EVICTIONS IN PUBLIC AND ASSISTED HOUS-
ING.
Not later than December 31, 1994, the Secretary of
Housing and Urban Development shall issue guidelines for
owners and managers of public and assisted housing with
respect to screening applicants for occupancy in such
housing, admissions to such housing, and evictions of resi-
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dents of such housing who are users or former users of
illegal drugs or who violate lease provisions because of al-
cohol use. The Secretary shall issue such guidelines based
on the report to the Congress issued by the Public and
Assisted Housing Occupancy Task Force on April 7, 1994,
pursuant to section 643(a)(7) of the Housing and Commu-
nity Development Act of 1992.
SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEM-
ONSTRATION.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development (in this section referred to as the
‘‘Secretary’’) shall carry out, through consortia of units
of general local government, a demonstration program to
make assisted housing available in 3 metropolitan areas
on a metropolitan, area-wide basis.
(b) PURPOSE.—The demonstration program under
this section shall be designed to determine the most effec-
tive manner to—
(1) affirmatively further fair housing and ad-
dress the problem of racial segregation in metropoli-
tan areas;
(2) achieve the goal of overcoming spatial sepa-
ration and segregation of families by race, which
shall include testing the effect of filling vacancies in
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assisted housing by use of a consolidated waiting
list;
(3) enlist cooperation of units of general local
government, public housing agencies, and private
owners of assisted housing in achieving such goals;
(4) make public housing facilitate social and
economic mobility;
(5) eliminate housing discrimination; and
(6) accomplish related objectives determined by
the Secretary.
(c) ELIGIBILITY
OF CONSORTIA.—The Secretary
shall select the consortia of units of general local govern-
ment to participate in the demonstration program on a
competitive basis and make a grant to each consortia se-
lected. The Secretary may select only consortia that dem-
onstrate to the Secretary, as the Secretary shall require,
that a sufficient number of units of general local govern-
ment, public housing agencies, and private owners of as-
sisted housing are committed to participate in the dem-
onstration to make the demonstration feasible, which shall
include commitment to comply with alternative program
requirements specified by the Secretary.
(d) DURATION.—The demonstration program shall
be carried out for a period of 3 years with respect to each
site selected.
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(e) WAIVERS.—The Secretary may waive, or specify
alternative requirements for, any provision of any statute
or regulation that the Secretary administers if the Sec-
retary finds that the waiver or alternative requirement (1)
is necessary to facilitate the demonstration program, and
(2) would not be inconsistent with the overall purpose of
the statute or regulation affected. In no event may the
Secretary waive, or specify alternative requirements for,
any provision of the Internal Revenue Code of 1986, or
statutory requirements related to nondiscrimination, fair
housing, labor standards, or the environment, except that
the Secretary may waive affirmative marketing require-
ments for participants in the demonstration program.
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated for the costs related to
regional planning, housing counseling, development of a
model consolidated waiting list, and administration under
the demonstration established by this section, such sums
as may be necessary for each of fiscal years 1995 and
1996.
SEC. 188. CERTAIN REVITALIZATION AND RELOCATION AS-
SISTANCE.
There are authorized to be appropriated for revital-
ization and relocation activities for the Windsor Park Sub-
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division in Las Vegas, Nevada, such sums as may be nec-
essary for fiscal year 1995.
TITLE II—HOME INVESTMENT
PARTNERSHIPS
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 205 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12724)
is amended to read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘There are authorized to be appropriated to carry out
this title $1,700,000,000 for fiscal year 1995, and
$2,000,000,000 for fiscal year 1996, of which—
‘‘(1) not more than $25,000,000 for fiscal year
1995, and $25,000,000 for fiscal year 1996, shall be
for community housing partnership activities author-
ized under section 233; and
‘‘(2) not more than $22,000,000 for fiscal year
1995, and $22,000,000 for fiscal year 1996, shall be
for activities in support of State and local housing
strategies authorized under subtitle C.’’.
(b) NOTICE OF FUNDING AVAILABILITY.—For each
of fiscal years 1995 and 1996, the Secretary shall cause
to be published in the Federal Register notice of the avail-
ability of any amounts made available under section
205(1) of the Cranston-Gonzalez National Affordable
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Housing Act (as amended by subsection (a)) that are
available for community housing partnership activities au-
thorized under section 233. Each such notice shall be pub-
lished not later than the expiration of the 90-day period
beginning on the date that amounts are appropriated for
each of such fiscal years to carry out the program under
title II of the Cranston-Gonzalez National Affordable
Housing Act.
SEC. 202. ELIGIBLE USES OF INVESTMENT.
Section 212(a)(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)(1)) is
amended by striking ‘‘financing costs’’ and inserting
‘‘costs of financing (including credit enhancements, loan
guarantees, and debt service reserves)’’.
SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUS-
ING.
Section 215(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)) is amend-
ed—
(1) in paragraph (1)(A), by striking ‘‘bears
rents not greater than’’ and inserting ‘‘is occupied
by tenants who pay as rent’’;
(2) in paragraph (3), by inserting after the pe-
riod at the end of the first sentence the following
new sentence: ‘‘A tenant occupying a rental unit as-
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sisted with amounts provided under this title shall
be considered to be a very low-income family until
the household’s income increases to more than 140
percent of the applicable income limitation under
paragraph (1)(B).’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) 
RENTAL
SUBSIDIES.—Notwithstanding
paragraph (1), housing shall not be considered to
fail to qualify as affordable housing under this title
because it includes units for which—
‘‘(A) payments are made under section 8
of the United States Housing Act of 1937 or
any comparable rental assistance program; and
‘‘(B) because of increases in the income of
tenants of the housing, the rent paid by the
tenants under the assistance program with re-
spect to such unit exceeds 30 percent of the ad-
justed income of a family whose income equals
65 percent of the median income for the area.’’.
SEC. 204. REPAYMENT OF INVESTMENT.
Section 219 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12749) is amended by
adding at the end the following new subsection:
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‘‘(d) REPAYMENT
OF
MATCHING
AMOUNTS.—
Amounts provided by a participating jurisdiction pursuant
to section 220 for housing not assisted under this title
shall be recognized for purposes of section 220(a), not-
withstanding that such amounts are not repaid to the ju-
risdiction’s HOME Investment Trust Fund, if such
amounts are drawn from an affordable housing program
operated by the jurisdiction, repaid to the program, and
available for use only for the program or for providing
housing that qualifies as affordable housing.’’.
SEC. 205. MATCHING REQUIREMENTS.
Section 220 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12750) is amended—
(1) in the first sentence of subsection (a), by in-
serting ‘‘the participating jurisdiction certifies’’ be-
fore ‘‘qualifies’’; and
(2) in subsection (b)(1)—
(A) in subparagraph (A), by striking ‘‘or’’;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) is made with respect to housing that
is substantially equivalent to housing that quali-
fies as affordable housing under section 215.’’.
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SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING
STRATEGIES.
Subtitle C of title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12781 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.
‘‘The Secretary may use amounts available under this
subtitle to provide grants to States, units of general local
government, and metropolitan, non-metropolitan, and re-
gional planning agencies, for the following activities:
‘‘(1) Urban design and the development of pub-
lic amenities in low-income neighborhoods that serve
as a catalyst for the renewal of the neighborhood.
‘‘(2) Development and implementation of com-
prehensive plans that focus on local and metropoli-
tan strategies which create sustainable community
development at the neighborhood, city, and metro-
politan level.
‘‘(3) Expanding economic opportunities for low-
and moderate-income families through areawide
planning approaches that provide educational and
employment opportunities for such persons.
‘‘(4) Coordinated efforts that stimulate fair
housing, further the deconcentration of the poor and
minorities, reduce the isolation of income groups
within communities, remove barriers to affordable
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housing development, and expand housing opportuni-
ties for low- and moderate-income families.
‘‘(5) The conservation of important historic, vis-
ual, and cultural features.
‘‘(6) The development and implementation of
comprehensive approaches that integrate poorer,
inner-city neighborhoods into the greater metropoli-
tan region.
‘‘(7) Any other activities the Secretary deter-
mines will further the purposes of this section.’’.
SEC. 207. LABOR REQUIREMENTS.
Section 286(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12836(b)) is amended
by adding at the end the following new sentence: ‘‘Sub-
section (a) shall not apply in the case of housing for which
a site is acquired or for which the homebuyer is assisted,
but which is not constructed, using funds made available
under this subtitle.’’.
TITLE III—SUPPORTIVE
HOUSING PROGRAMS
SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE
ELDERLY AND FOR PERSONS WITH DISABIL-
ITIES.
Section 601 of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)
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is amended by striking subsection (a) and inserting the
following new subsection:
‘‘(a) AGGREGATE FUNDING.—There are authorized
to be appropriated for the purpose of providing assistance
in accordance with section 202 of the Housing Act of 1959
and section 811 of the Cranston-Gonzalez National Af-
fordable Housing Act, $1,948,000,000 for fiscal year 1995
and $1,954,000,000 for fiscal year 1996.’’.
SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.
(a) ELDER
COTTAGE
HOUSING
UNITS.—Section
202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))
is amended by inserting after the second sentence the fol-
lowing new sentence: ‘‘Such assistance may also be used
to finance the acquisition and installation of elder cottage
housing units that are small, freestanding, barrier-free,
energy efficient, removable and designed to be installed
adjacent to existing 1- to 4-family dwellings and are used
as supportive housing for the elderly in accordance with
this section.’’.
(b) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
202(k)(3) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(3)) is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
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independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
(c) REPEAL OF DEMONSTRATION.—Section 806 of
the Cranston-Gonzalez National Affordable Housing Act
(12 U.S.C. 1701q note) is hereby repealed.
SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DIS-
ABILITIES.
(a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 8013) is amended—
(1) in the first sentence of subsection (f), by in-
serting ‘‘and public housing agencies’’ after ‘‘private
nonprofit organizations’’; and
(2) in subsection (k)—
(A) in paragraph (5), by striking ‘‘private
nonprofit organization’’ and inserting ‘‘eligible
sponsor’’; and
(B) by adding at the end the following new
paragraph:
‘‘(10) The term ‘eligible sponsor’ means—
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‘‘(A) in the case of capital advances under
subsection (b)(2) and project rental assistance
under subsections (b) (2) and (3)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
in the case of a jurisdiction for which the
Secretary determines that, during the 3-
year period ending upon the date of the
application of the agency for assistance
under subsection (b) (2) or (3)—
‘‘(I) no private nonprofit organi-
zation has submitted an application
under subsection (f) for assistance for
a project located in such area; and
‘‘(II) no private nonprofit organi-
zation has had such an application ap-
proved for a project located in such
area; and
‘‘(B) in the case of tenant-based rental as-
sistance under subsection (b)(1)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
to the extent that such assistance is used
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for providing assistance in accordance with
an allocation plan for the agency under
section 7(f) of the United States Housing
Act of 1937.’’.
(b) RENTAL ASSISTANCE
FOR EXISTING BUILD-
INGS.—Section 811 of the Cranston-Gonzalez National
Affordable Housing Act is amended—
(1) in subsection (d)(2), by adding at the end
the following new sentence: ‘‘The Secretary may
enter into contracts with private, nonprofit organiza-
tions to provide project rental assistance for sup-
portive housing for persons with disabilities, regard-
less of whether the housing is developed with capital
advances under this section.’’;
(2) in subsection (e)(1), by inserting ‘‘with cap-
ital advances’’ after ‘‘assisted’’;
(3) by striking the first 2 sentences of sub-
section (e)(2) and inserting the following new sen-
tences: ‘‘The initial term of a contract entered into
under subsection (d)(2) shall be 240 months for
housing developed with a capital advance, and shall
be not more than 60 months for housing not devel-
oped with a capital advance. The Secretary shall, to
the extent approved in appropriation Acts, extend
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any expiring contracts for a term of not less than 60
months.’’;
(4) in subsection (g)(1), by inserting ‘‘(if appli-
cable)’’ after ‘‘develop’’;
(5) in subsections (g)(3) and (g)(5), by insert-
ing ‘‘design or’’ before ‘‘proposed’’ each place it ap-
pears;
(6) in subsection (j), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) SITE CONTROL.—
‘‘(A) CAPITAL ADVANCES.—In the case of
housing to be assisted with capital advances
under this section, an applicant may obtain
ownership or control of a suitable site different
from the site specified in the initial application.
If an applicant fails to obtain ownership or con-
trol of the site within 1 year after notification
of an award for assistance, the assistance shall
be recaptured and reallocated.
‘‘(B) PROJECT
RENTAL
ASSISTANCE.—In
the case of housing to be assisted only with
project rental assistance, the applicant shall
have ownership or control of a suitable site at
the time of application. The Secretary may ap-
prove a change in site at any time from the
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date the application is submitted to the expira-
tion date of the rental assistance contract.’’;
(7) in subsection (j)(4), by striking ‘‘The’’ and
inserting the following: ‘‘In the case of housing as-
sisted with capital advances under this section, the’’;
(8) in the second sentence of subsection (k)(1),
by striking ‘‘the development of’’;
(9) in subsection (k)(5), by inserting before the
period at the end the following: ‘‘, or that receives
rental assistance under this section to operate a
project for supportive housing for persons with dis-
abilities’’; and
(10) in subsection (m)(3), by striking ‘‘(1)’’ and
inserting ‘‘(2)’’.
(c) AUTHORITY TO PROVIDE ASSISTANCE.—Section
811 of the Cranston-Gonzalez National Affordable Hous-
ing Act is amended—
(1) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GENERAL AUTHORITY.—The Secretary may
provide assistance to eligible sponsors to expand the sup-
ply of supportive housing for persons with disabilities.
Such assistance shall be provided as—
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‘‘(1) tenant-based rental assistance on behalf of
eligible persons with disabilities, in accordance with
subsection (d)(4);
‘‘(2) capital advances in accordance with sub-
section (d)(1), together with contracts for project
rental assistance in accordance with subsection
(d)(2); or
‘‘(3) contracts for project rental assistance in
accordance with subsection (d)(2).’’;
(2) in subsection (d)(1), by adding at the end
the following new sentences: ‘‘Capital advances may
be used to finance the acquisition, acquisition and
moderate rehabilitation, construction, reconstruction,
or moderate or substantial rehabilitation of housing,
including the acquisition from the Resolution Trust
Corporation, to be used as supportive housing for
persons with disabilities and may include real prop-
erty acquisition, site improvement, conversion, demo-
lition, relocation, and other expenses that the Sec-
retary determines are necessary to expand the sup-
ply of supportive housing for persons with disabil-
ities. Such assistance may also be used to finance
the acquisition and installation of cottage housing
units that are small, freestanding, barrier-free, en-
ergy efficient, removable and designed to be installed
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adjacent to existing 1- to 4-family dwellings and are
used as supportive housing for the persons with dis-
abilities in accordance with this section.’’;
(3) in subsections (d)(3), (e)(1), and (f), by in-
serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place
it appears; and
(4) by striking paragraph (4) of subsection (d)
and inserting the following new paragraph:
‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—
‘‘(A) 
ADMINISTRATION.—Tenant-based
rental assistance that is provided under sub-
section (b)(1) shall be administered under the
same rules governing rental assistance made
available under section 8 of the United States
Housing Act of 1937.
‘‘(B) PUBLIC HOUSING AGENCIES.—A pub-
lic housing agency may provide tenant-based
rental assistance under subsection (b)(1) only if
the public housing agency has submitted, and
had approved, an allocation plan under section
7(f) of the United States Housing Act of 1937
and any such assistance made available to a
public housing agency shall be provided by the
agency in accordance with such allocation plan.
In determining the amount of assistance pro-
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vided under subsection (b)(1) for a public hous-
ing agency, the Secretary shall consider the
needs of the agency as described in the alloca-
tion plan.’’.
(d) TECHNICAL CHANGES.—Section 811(k)(6) of the
Cranston-Gonzalez National Affordable Housing Act is
amended by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) that has received tax-exempt status
under section 501(c) (3) or (4) of the Internal
Revenue Code of 1986;’’.
SEC. 304. REVISED CONGREGATE SERVICES.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
802(n)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8011(n)(1)) is amended by strik-
ing the matter preceding subparagraph (A) and inserting
the following:
‘‘(1) AUTHORIZATION AND USE.—There are au-
thorized to be appropriated to carry out this section
$25,000,000 for fiscal year 1995, and $26,000,000
for fiscal year 1996, of which not more than—’’.
(b) MEAL FEES AND MATCHING AMOUNTS.—Section
802 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 8011) is amended—
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(1) in subparagraph (A) of subsection (d)(7),
by striking ‘‘The fees for meals shall be in the fol-
lowing amounts:’’ and all that follows through the
end of the subparagraph; and
(2) in subsection (i)(1)—
(A) in subparagraph (A)(i), by striking
‘‘50 percent’’ and inserting ‘‘25 percent’’;
(B) in subparagraph (A)(ii), by striking
‘‘40 percent’’ and inserting ‘‘65 percent’’; and
(C) in subparagraph (C), by striking ‘‘10
percent’’ and inserting ‘‘25 percent’’.
(c) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
802(k)(8) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
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SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.
(a) SECTION 8 ASSISTANCE.—The first sentence of
section 803(j) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 8012(j)) is amended to read
as follows: ‘‘The budget authority available under section
5(c) of the United States Housing Act of 1937 for assist-
ance under section 8 of such Act is authorized to be in-
creased by $25,000,000 on or after October 1, 1994, and
by $25,000,000 on or after October 1, 1995.’’.
(b) SUPPORTIVE SERVICES AUTHORIZATION.—The
first sentence of section 803(k) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8012(k)) is
amended to read as follows: ‘‘There are authorized to be
appropriated for the Secretary to carry out the responsibil-
ities for supportive services under the demonstrations
under this section $7,000,000 to become available in fiscal
year 1995, and $7,000,000 to become available in fiscal
year 1996.’’.
(c) SUPPORTIVE SERVICES CONTRIBUTIONS.—Sec-
tion 803(c)(1) of the Cranston-Gonzalez National Afford-
able Housing Act is amended—
(1) in subparagraph (A), by striking ‘‘40 per-
cent’’ and inserting ‘‘65 percent’’; and
(2) in subparagraph (B), by striking ‘‘50 per-
cent’’ and inserting ‘‘25 percent’’.
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(d) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
803(g)(3) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly person’ means an elderly person whose level of func-
tional disability jeopardizes her or his ability to continue
to live independently. The Secretary shall, to the extent
possible, develop assessment measures of functional dis-
ability that are appropriate for purposes of this section
and will provide for effective use of the program under
this section with other programs providing supportive
services.’’.
(e) AMENDMENT TO HEADING.—Section 803 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8012) is amended by striking the section designa-
tion and heading and inserting the following:
‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.’’.
SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
863 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12912) is amended to read as follows:
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‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subtitle $212,000,000 for fiscal year 1995 and
$225,000,000 for fiscal year 1996.’’.
(b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12903(c)(3)) is amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and’’ at the
end;
(B) in clause (ii), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(iii) nonprofit organizations that pro-
vide technical assistance on a national, re-
gional, or State-wide basis to nonprofit or-
ganizations carrying out eligible activities
under section 855 for eligible persons, to
provide such technical assistance, except
that not more than 2 percent of the
amounts available in any fiscal year for al-
location under this paragraph shall be used
as provided in this clause.’’; and
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(2) in subparagraph (B), by striking ‘‘this para-
graph’’ and inserting ‘‘clauses (i) and (ii) of sub-
paragraph (A)’’.
(c) COOPERATION.—
(1) IN GENERAL.—Section 856(c) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12905(c)) is amended by striking ‘‘The recip-
ient’’ and all that follows and inserting the following:
‘‘The recipient shall establish and implement a proc-
ess for ensuring coordination and community input
in planning for and providing services assisted with
amounts provided under this subtitle. The planning
process shall include consultation and coordination
with the agencies of the relevant State and local gov-
ernments responsible for services for eligible persons
in the area served by the applicant and with other
public and private organizations and agencies pro-
viding services for such eligible persons (including
individuals with human immunodeficiency virus dis-
ease), including community-based and AIDS service
organizations, providers of social services, providers
of mental health care, providers of substance abuse
treatment services, nonprofit providers of housing
for eligible persons, and affected communities.’’.
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(2) APPLICATION.—Section 854(d) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12903(d)) is amended—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) by redesignating paragraph (6) as
paragraph (7); and
(C) by inserting after paragraph (5) the
following new paragraph:
‘‘(6) a description of the activities to be under-
taken in fulfilling the requirements under section
856(c); and’’.
(d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12905(g)(2)) is amended—
(1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;
and
(2) by striking ‘‘, including the costs of staff
necessary to carry out eligible activities’’.
SEC. 307. SERVICE COORDINATORS.
(a) PUBLIC HOUSING.—Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amend-
ed in subsection (a)(1)(B)(ii)—
(1) in the 1st sentence, by striking ‘‘Annual’’
and all that follows through ‘‘such project,’’ and in-
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serting ‘‘To the extent amounts are made available
pursuant to section 5(c) for carrying out this clause,
the Secretary may increase the annual contributions
provided under this section to any public housing
agency for any project to provide’’; and
(2) by striking the last 2 sentences.
(b) OTHER FEDERALLY ASSISTED MULTIFAMILY
HOUSING.—Section 676(c) of the Housing and Commu-
nity Development Act of 1992 (42 U.S.C. 13632(c)) is
amended to read as follows:
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for grants under this
section such sums as may be necessary for each of fiscal
years 1995 and 1996.’’.
TITLE 
IV—MORTGAGE 
INSUR-
ANCE 
AND 
SECONDARY
MORTGAGE MARKET
Subtitle A—Mortgage Insurance
and Loan Guarantee Programs
SEC. 401. LIMITATION ON INSURANCE AUTHORITY.
Section 531(b) of the National Housing Act (12
U.S.C. 1735f–9(b)) is amended to read as follows:
‘‘(b) Notwithstanding any other provision of law and
subject only to the absence of qualified requests for insur-
ance, to the authority provided in this Act, and to the limi-
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tation in subsection (a), the Secretary shall enter into
commitments to insure mortgages under this Act with an
aggregate principal amount of $105,000,000,000 during
fiscal year 1995 and $91,000,000,000 during fiscal year
1996.’’.
SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY
BOARD.
Section 202(b)(11) of the National Housing Act (12
U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,
1995.’’ and inserting ‘‘January 1, 1997.’’.
SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SIN-
GLE FAMILY MORTGAGES.
Subparagraph (A) of the first sentence of section
203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)(A)) is amended by striking clause (ii) and in-
serting the following new clause:
‘‘(ii) 85 percent of the dollar amount
limitation 
determined 
under 
section
305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (as adjusted an-
nually under such section) for a residence
of the applicable size;’’.
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SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SIN-
GLE FAMILY MORTGAGE INSURANCE.
Subparagraph (A) of the first sentence of section
203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)(A)) is amended by striking ‘‘the dollar amount
limitation in effect under this section for the area on May
12, 1992’’ and inserting the following: ‘‘50 percent of the
dollar amount limitation determined under section
305(a)(2) of the Federal Home Loan Mortgage Corpora-
tion Act (as adjusted annually under such section) for a
residence of the applicable size’’.
SEC. 405. CALCULATION OF DOWNPAYMENT.
Section 203(b)(2) of the National Housing Act (12
U.S.C. 1709(b)(2)) is amended—
(1) by striking subparagraph (B) and inserting
the following new subparagraph:
‘‘(B) except as otherwise provided in this
paragraph (2), not in excess of—
‘‘(i) in the case of a mortgage for a
property with an appraised value equal to
or less than $50,000, 98.75 percent of the
appraised value of the property,
‘‘(ii) in the case of a mortgage for a
property with an appraised value in excess
of $50,000 but not in excess of $125,000,
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97.65 percent of the appraised value of the
property,
‘‘(iii) in the case of a mortgage for a
property with an appraised value in excess
of $125,000, 97.15 percent of the ap-
praised value of the property, or
‘‘(iv) notwithstanding clauses (ii) and
(iii), in the case of a mortgage for a prop-
erty with an appraised value in excess of
$50,000 and which is located in a State for
which the average closing cost exceeds 3.25
percent of the average, for the State, of
the sale price of properties located in the
State for which mortgages have been exe-
cuted, 97.75 percent of the appraised value
of the property,
plus the amount of the mortgage insurance pre-
mium paid at the time the mortgage is in-
sured.’’;
(2) in the 1st sentence of the matter following
subparagraph (B), by inserting before the period at
the end the following: ‘‘, and the term ‘average clos-
ing cost’ means, with respect to a State, the average,
for mortgages executed for properties that are lo-
cated within the State, of the total amounts (as de-
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termined by the Secretary) of initial service charges,
appraisal, inspection, and other fees (as the Sec-
retary shall approve) that are paid in connection
with such mortgages’’;
(3) by striking the 2d sentence of the matter
following subparagraph (B); and
(4) in penultimate undesignated paragraph—
(A) in the 2d sentence, by striking ‘‘the
preceding sentence’’ and inserting ‘‘this sub-
section’’; and
(B) by striking the 1st sentence.
SEC. 406. ELIMINATION OF RESTRICTIONS REGARDING
NEW CONSTRUCTION.
(a) IN GENERAL.—Section 203(b)(2) of the National
Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the
matter following subparagraph (B)—
(1) in the 1st undesignated paragraph, by strik-
ing ‘‘Notwithstanding any other provision of this
section,’’ and all that follows through ‘‘beginning of
construction.’’; and
(2) by striking the 2d undesignated paragraph
(relating to mortgage insurance amounts for resi-
dences having solar energy systems).
(b) REPEAL OF AUTHORITY TO EXPEND AMOUNTS
FROM INSURANCE FUND TO CORRECT SUBSTANTIAL DE-
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FECTS.—Section 518 of the National Housing Act (12
U.S.C. 1735b) is hereby repealed.
SEC. 407. AUTHORITY TO USE AMOUNTS BORROWED FROM
FAMILY MEMBERS FOR DOWNPAYMENTS.
(a) IN GENERAL.—Section 203(b)(9) of the National
Housing Act (12 U.S.C. 1709(b)(9)) is amended by insert-
ing before the period at the end the following: ‘‘: Provided
further, That for purposes of this paragraph, the Secretary
shall consider as cash or its equivalent any amounts bor-
rowed from a family member (as such term is defined in
section 201), subject only to the requirements that, in any
case in which the repayment of such borrowed amounts
is secured by a lien against the property, such lien shall
be subordinate to the mortgage and the sum of the prin-
cipal obligation of the mortgage and the obligation secured
by such lien may not exceed 100 percent of the appraised
value of the property plus any initial service charges, ap-
praisal, inspection, and other fees in connection with the
mortgage’’.
(b) DEFINITION OF FAMILY MEMBER.—Section 201
of the National Housing Act (12 U.S.C. 1707) is amended
by adding at the end the following new subsections:
‘‘(e) The term ‘family member’ means, with respect
to a mortgagor under such section, a child, parent, or
grandparent of the mortgagor (or the mortgagor’s
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spouse). In determining whether any of the relationships
referred to in the preceding sentence exist, a legally adopt-
ed son or daughter of an individual (and a child who is
a member of an individual’s household, if placed with such
individual by an authorized placement agency for legal
adoption by such individual), and a foster child of an indi-
vidual, shall be treated as a child of such individual by
blood.
‘‘(f) The term ‘child’ means, with respect to a mort-
gagor under such section, a son, stepson, daughter, or
stepdaughter of such mortgagor.’’.
SEC. 408. INDEMNIFICATION FOR MULTIFAMILY HOUSING
PROJECT MANAGERS.
Section 207(l) of the National Housing Act (12
U.S.C. 1713(l)) is amended by inserting before the period
at the end the following: ‘‘: Provided further, That, for
properties acquired by the Secretary under this section
and for properties secured by any mortgage assigned and
transferred to or held by the Secretary, the Secretary may
indemnify management contractors against claims by
third persons for death, bodily injury, or loss of or damage
to property on such terms as the Secretary determines ap-
propriate’’.
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SEC. 409. EXTENSION OF MULTIFAMILY HOUSING MORT-
GAGE AUCTION PROVISIONS.
(a) EXTENSION.—The first sentence of section
221(g)(4)(C)(viii) of the National Housing Act (12 U.S.C.
1715l(g)(4)(C)(viii)) is amended by striking ‘‘September
30, 1995’’ and inserting ‘‘December 31, 2005’’.
(b) BUDGET COMPLIANCE.—Section 221(g)(4)(C) of
the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is
amended by adding at the end the following new clause:
‘‘(ix) This subparagraph shall be effective for
any fiscal year only to such extent or in such
amounts as are or have been provided in appropria-
tion Acts for such fiscal year.’’.
SEC. 410. STREAMLINED REFINANCING FOR HUD-HELD
MORTGAGES.
(a) IN GENERAL.—Section 223(a) of the National
Housing Act (12 U.S.C. 1715n) is amended—
(1) in paragraph (7), by striking the colon pre-
ceding ‘‘Provided further,’’ and all that follows
through ‘‘and the mortgagee’’;
(2) by redesignating paragraph (8) as para-
graph (9);
(3) by inserting after paragraph (7) the follow-
ing new paragraph:
‘‘(8) given to refinance a mortgage held by the
Secretary, upon such terms and conditions as the
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Secretary may prescribe, covering property on which
there is located a 1- to 4-family residence, or a 1-
family unit in a condominium project, which mort-
gage was formerly insured under this Act and subse-
quently assigned to the Secretary: Provided, That
the mortgagor has not previously refinanced a mort-
gage pursuant to this paragraph: Provided further,
That the mortgagor has made all payments due
under the note secured by the existing mortgage and
all payments due under the note for at least the pre-
vious 6 months, or the mortgagor is under a forbear-
ance agreement and has made all payments due
under the note secured by the existing mortgage for
at least the previous 6 months: Provided further,
That the principal amount of the refinancing mort-
gage may not exceed the outstanding principal bal-
ance of the existing mortgage by more than addi-
tional amounts owed by the mortgagor due to the
delinquency and to the receipt of assignment assist-
ance under section 230: Provided further, That the
monthly payment due under the refinancing mort-
gage may not exceed the monthly payment due
under the existing mortgage: Provided further, That
the refinancing mortgage may have a term not more
than 12 years in excess of the unexpired term of the
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assigned mortgage: Provided further, That the refi-
nancing mortgage may be insured under section
203(b) or 221(d)(2) of this Act, at the option of the
mortgagee, or under section 234(c) of this Act in the
case of a condominium: Provided further, That a re-
financing mortgage insured under section 221(d)(2)
shall involve a principal obligation in an amount not
to exceed 50 percent of the applicable dollar limita-
tion for a 1- to 4-family residence under section
203(b)(2): Provided further, That the authority
under this paragraph to refinance a mortgage shall
terminate 30 months after the date of enactment of
this Act: Provided further, That the total number of
mortgages refinanced under this paragraph may not
exceed 20,000; or’’; and
(4) by adding at the end the following new
flush material:
‘‘A mortgage of the character described in paragraphs (1)
through (6) of this subsection shall have a maturity and
a principal obligation not in excess of the maximums pre-
scribed under the applicable section or title of this Act,
except that in no case may the principal obligation of a
mortgage referred to in paragraph (5) of this subsection
exceed 90 percent of the appraised value of the mortgage
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property, and shall bear interest at such rate as may be
agreed upon by the mortgagor and the mortgagee.’’.
(b) IMPLEMENTATION.—The Secretary of Housing
and Urban Development may implement the authority to
refinance a mortgage held by the Secretary under section
223(a)(8) of the National Housing Act, as added by the
amendment made by subsection (a)(3) of this section, by
notice published in the Federal Register setting forth such
requirements as may be necessary.
SEC. 411. HOME EQUITY CONVERSION MORTGAGES FOR EL-
DERLY HOMEOWNERS.
(a) EXTENSION OF PROGRAM.—The first sentence of
section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended by striking ‘‘September 30,
1995’’ and inserting ‘‘September 30, 2000’’.
(b) ELIGIBLE RESIDENCES.—Section 255(d)(3) of
the National Housing Act (12 U.S.C. 1715z–20(d)(3)) is
amended to read as follows:
‘‘(3) be secured by a dwelling that is designed
principally for a 1- to 4-family residence in which
the mortgagor occupies 1 of the units;’’.
(c) EXPANSION OF PROGRAM.—The second sentence
of section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended by striking ‘‘25,000’’ and insert-
ing ‘‘50,000’’.
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(d) REPORTS.—Section 255(k) of the National Hous-
ing Act is amended by adding at the end the following
new sentences: ‘‘Each biennial report shall also include the
results of a survey conducted during the period since the
most recent report under this subsection to determine (A)
the financial and other needs of elderly homeowners that
cause such homeowners to consider obtaining home equity
conversion mortgages, and (B) the extent of consumer sat-
isfaction regarding the program under this section and
counseling provided pursuant to the requirements of this
section. In conducting the survey, the Secretary shall con-
sult a representative sample of mortgagors of mortgages
insured under this section and of elderly homeowners who
have expressed interest in obtaining, but did not obtain,
such mortgages.’’.
(e) AVOIDANCE OF PREEMPTION OF STATE LAW.—
Section 255(b)(3) of the National Housing Act is amend-
ed—
(1) in clause (B), by striking ‘‘, notwithstand-
ing any State constitution, law, or regulation’’; and
(2) by adding at the end the following new sen-
tence: ‘‘Notwithstanding any other provision of this
section, the Secretary may not provide insurance for
a home equity conversion mortgage in the State of
Texas if under the State constitution, or a law or
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regulation of such State, such mortgages are prohib-
ited or foreclosure or forced sale of the property sub-
ject to such a mortgage is prohibited.’’.
SEC. 412. SINGLE FAMILY RISK-SHARING MORTGAGE IN-
SURANCE PROGRAM.
(a) IN GENERAL.—Title II of the National Housing
Act (12 U.S.C. 1707 et seq.) is amended by adding at
the end the following new section:
‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL
AGENCIES
‘‘SEC. 256. (a) PURPOSES.—The purposes of the pro-
gram under this section are (1) to increase the availability
of single family mortgage financing in areas where there
is need for mortgage insurance under this Act that cannot
be met due to particularly high average median house
prices in the area, and (2) to foster arrangements with
State and local agencies to share the risk of mortgage in-
surance.
‘‘(b) AUTHORITY.—Notwithstanding any other provi-
sion of this Act inconsistent with this section, the Sec-
retary may insure and make commitments to insure under
this section mortgages on single family properties under
risk-sharing mortgage insurance programs established
with 1 or more States or agencies. Under such programs,
the Secretary shall insure a portion of the mortgage, and
the State or local agency shall insure the remainder or
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(at the discretion of the agency) a portion of the remain-
der and provide for private mortgage insurance companies
to insure any portion of the remainder not insured by the
agency. The portion of the mortgage insured under this
section by the Secretary and the State or local agency,
in the aggregate, may not exceed 35 percent of the out-
standing principal obligation of the mortgage (and such
fees, interest, and other expenses determined by the Sec-
retary to be appropriate).
‘‘(c) ELIGIBLE MORTGAGES.—The Secretary may in-
sure under this section, and make commitments to insure
under this section, only mortgages that—
‘‘(1) are executed—
‘‘(A) in connection with the acquisition of
a single family property; or
‘‘(B) for the refinancing of a mortgage
that was previously insured under this section;
and
‘‘(2) involve a property located in an area—
‘‘(A) for which the amount under clause
(ii) of section 203(b)(2)(A) is less than the
amount determined under clause (i) of such sec-
tion for a residence of the applicable size; and
‘‘(B) that has a State agency that—
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‘‘(i) is fully authorized under State
and local laws and is adequately capital-
ized, in the determination of the Secretary,
to carry out this section; and
‘‘(ii)(I) carries the designation of ‘top
tier’ or its equivalent, as evaluated by
Standard and Poors or any other nation-
ally recognized rating agency; or
‘‘(II) receives a rating of ‘A’ for its
general obligation bonds from a nationally
recognized rating agency.
‘‘(d) APPLICATIONS.—
‘‘(1) APPROVAL.—The Secretary may approve
an application submitted by a State or local agency
to establish a risk-sharing program under this sec-
tion, only if the Secretary determines that the State
or local agency has demonstrated that—
‘‘(A) it has the legal authority under State
law and, where applicable, local law, to partici-
pate in the program under this section;
‘‘(B) it has carried out, or has the poten-
tial to carry out, a financially sound, efficient,
and effective mortgage insurance program; and
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‘‘(C) it has the ongoing administrative and
financial capacity necessary to carry out a pro-
gram under this section.
‘‘(2) CANCELLATION OF APPROVAL.—The Sec-
retary may cancel approval of a State or local agen-
cy under this section for a violation of requirements
and procedures under the risk-sharing agreement be-
tween the State or local agency and the Secretary or
for other good cause, by giving notice to the State
or local agency. The cancellation shall be effective
upon receipt of the notice by the agency or at a later
date specified by the Secretary. A decision by the
Secretary to cancel approval shall be final and con-
clusive and shall not be subject to judicial review.
‘‘(e) DELEGATION OF AUTHORITY TO INSURE TO
STATE AND LOCAL AGENCIES.—Pursuant to a risk-shar-
ing agreement with a State or local agency, the Secretary
shall delegate the authority to insure and make commit-
ments to insure the portion of mortgages to be insured
by the Secretary under this section to the State or local
agency. The risk-sharing agreement shall contain such
other matters as the Secretary and the State or local agen-
cy agree.
‘‘(f) UNDERWRITING STANDARDS AND LOAN TERMS
AND CONDITIONS.—The State or local agency shall adopt
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underwriting standards and loan terms and conditions for
purposes of underwriting loans to be insured under this
section. Such standards shall be at least as stringent as
the standards pursuant to this Act for mortgages insured
under section 203 and shall be subject to review and ap-
proval by the Secretary.
‘‘(g) MORTGAGE INSURANCE PREMIUMS.—
‘‘(1) REQUIREMENT.—The State or local agen-
cy shall require the payment of mortgage insurance
premiums by mortgagors.
‘‘(2) SHARES.—The Secretary shall establish
policies and procedures for the sharing of premiums
between the Secretary and the State or local agency,
based on the relative risk to, and administrative
costs of, the Secretary and the State or local agency.
The share paid to the Secretary shall not be less
than an amount necessary to cover the risk to, and
administrative costs of, the Secretary.
‘‘(h) 
LIMITATIONS
ON
PRINCIPAL
MORTGAGE
AMOUNT.—
‘‘(1) INSURED PORTION.—The portion of the
mortgage insured under this section by the Sec-
retary may not exceed an amount equal to the lesser
of (A) 80 percent of the appraised value of the prop-
erty, or (B) the maximum amount the Secretary
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may insure under section 203(b) of this Act for the
area (but not including any amount for a mortgage
insurance premium).
‘‘(2) TOTAL
PRINCIPAL
AMOUNT.—The total
principal amount of a mortgage insured under this
section by the Secretary and the State or local agen-
cy (A) shall exceed the maximum amount the Sec-
retary may insure under subparagraph (A) of the
first sentence of section 203(b)(2) for the area, and
(B) may not exceed the conforming loan limitation
determined under section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act for a resi-
dence of the applicable size, as adjusted annually.
‘‘(3) LOAN-TO-VALUE
RATIO.—The principal
obligation of a mortgage may not exceed an amount
determined in accordance with subparagraph (B) of
the first sentence of section 203(b)(2) plus the mort-
gage insurance premium.
‘‘(4) 
REFINANCING
MORTGAGES.—Notwith-
standing paragraph (2)(A) or (3), in the case of refi-
nancing of an existing mortgage that was previously
insured under this section, the principal obligation of
a refinancing mortgage may not exceed the out-
standing principal balance of the existing mortgage
plus any mortgage insurance premium.
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‘‘(i) INSURANCE CLAIMS.—
‘‘(1) PROCEDURE.—In the case of a default and
foreclosure of a mortgage insured under this section,
the mortgagee may file a claim with the State or
local agency for insurance benefits in accordance
with requirements established by the State or local
agency and approved by the Secretary. The agency
shall pay the full amount of the claim owed to the
mortgagee. If the loss on the insured mortgage ex-
ceeds the amount of insurance by the agency, the
Secretary shall reimburse the agency for the dif-
ference.
‘‘(2) MUTUAL MORTGAGE INSURANCE FUND.—
The insurance of a mortgage under this section by
the Secretary shall be an obligation of the Mutual
Mortgage Insurance Fund created pursuant to sec-
tion 205.
‘‘(j) INAPPLICABILITY OF THE ASSIGNMENT PRO-
GRAM.—Section 230 shall not apply to mortgages insured
under the program authorized by this section.
‘‘(k) RESTRICTION ON GNMA SECURITIZATION.—
The Government National Mortgage Association shall not
securitize any loans insured under this section.
‘‘(l) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
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‘‘(1) The term ‘local agency’ means an agency
of a unit of general local government, as defined by
the Secretary, that has the authority to insure mort-
gages and to participate with the Secretary in the
single family risk-sharing program under this sec-
tion, or an agency or instrumentality of a local agen-
cy if the agency or instrumentality has such author-
ity.
‘‘(2) The term ‘State agency’ means an agency
of a State that has the authority to insure mort-
gages and to participate with the Secretary in the
single family risk-sharing program under this sec-
tion, or an agency or instrumentality of a State
agency if the agency or instrumentality has such au-
thority.
‘‘(3) The term ‘single family property’ means a
property upon which there is located a dwelling de-
signed principally for occupancy by 1 family, and in-
cludes a condominium and a cooperative.
‘‘(4) The term ‘State’ means the several States,
the Commonwealth of Puerto Rico, the District of
Columbia, Guam, the Commonwealth of the North-
ern Mariana Islands, American Samoa, and the Vir-
gin Islands.’’.
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(b) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue any regulations necessary
to implement the amendment made by subsection (a).
SEC. 413. DELEGATION OF SINGLE FAMILY MORTGAGE IN-
SURING AUTHORITY TO DIRECT ENDORSE-
MENT MORTGAGEES.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT
ENDORSEMENT MORTGAGEES
‘‘SEC. 257. (a) AUTHORITY.—The Secretary may del-
egate, to one or more mortgagees approved by the Sec-
retary under the direct endorsement program, the author-
ity of the Secretary under this Act to insure mortgages
involving property upon which there is located a dwelling
designed principally for occupancy by 1 to 4 families.
‘‘(b) CONSIDERATIONS.—In determining whether to
delegate authority to a mortgagee under this section, the
Secretary shall consider the experience and performance
of the mortgagee under the direct endorsement program,
the default rate of insured mortgages originated by the
mortgagee compared to the default rate of all insured
mortgages in comparable markets, and such other factors
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as the Secretary determines appropriate to minimize risk
of loss to the insurance funds under this Act.
‘‘(c) ENFORCEMENT
OF
INSURANCE
REQUIRE-
MENTS.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a mortgage insured by a mortgagee pursuant to
delegation of authority under this section was not
originated in accordance with the requirements es-
tablished by the Secretary, and the Secretary pays
an insurance claim with respect to the mortgage
within a reasonable period specified by the Sec-
retary, the Secretary may require the mortgagee ap-
proved under this section to indemnify the Secretary
for the loss.
‘‘(2) 
FRAUD
OR
MISREPRESENTATION.—If
fraud or misrepresentation was involved in connec-
tion with the origination, the Secretary may require
the mortgagee approved under this section to indem-
nify the Secretary for the loss regardless of when an
insurance claim is paid.
‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—
If a mortgagee to which the Secretary has made a delega-
tion under this section violates the requirements and pro-
cedures established by the Secretary or the Secretary de-
termines that other good cause exists, the Secretary may
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cancel a delegation of authority under this section to the
mortgagee by giving notice to the mortgagee. Such a can-
cellation shall be effective upon receipt of the notice by
the mortgagee or at a later date specified by the Secretary.
A decision by the Secretary to cancel a delegation shall
be final and conclusive and shall not be subject to judicial
review.
‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap-
proving a delegation under this section, the Secretary shall
issue regulations establishing appropriate requirements
and procedures, including requirements and procedures
governing the indemnification of the Secretary by the
mortgagee.’’.
SEC. 414. ELIGIBILITY OF MORTGAGES ON HOMES ON
LEASED LAND OWNED BY COMMUNITY LAND
TRUSTS.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
‘‘ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED
LAND OWNED BY COMMUNITY LAND TRUSTS
‘‘SEC. 258. (a) ELIGIBILITY FOR INSURANCE.—In
providing mortgage insurance under any provision of this
title for a mortgage covering a 1- to 4-family residence,
the Secretary may insure a mortgage covering such a resi-
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dence which is located on property owned by a community
land trust without regard to the extent to which the resale
price of the residence is restricted or the manner in which
such price is established.
‘‘(b) LIMITATION ON RESTRICTIONS.—The Secretary
may not, as a condition of such insurance, establish any
requirements regarding the resale price of residences on
land owned by a community land trust, except that the
Secretary may require that a ground lease or other docu-
ment establishing legally enforceable restrictions or limita-
tions on the resale price provide that the restrictions or
limitations be cancelable in the event of foreclosure or de-
livery of a deed in lieu of foreclosure (or assignment).
‘‘(c) DEFINITION OF ‘COMMUNITY LAND TRUST’.—
For purposes of this section, the term ‘community land
trust’ has the meaning given the term in section 233 of
the Cranston-Gonzalez National Affordable Housing
Act.’’.
SEC. 415. INSURANCE OF 2-STEP SINGLE FAMILY MORT-
GAGES.
Title II of the National Housing Act (12 U.S.C. 1701
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
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‘‘2-STEP SINGLE FAMILY MORTGAGES
‘‘SEC. 259. (a) AUTHORITY.—After making the find-
ing required under subsection (d), the Secretary may in-
sure under any provision of this title a mortgage involving
property upon which there is located a dwelling designed
principally for occupancy by 1 to 4 families, where the
mortgage provides that the effective rate of interest
charged is—
‘‘(1) fixed for the duration of a specified period
that consists of not less than the first 5 years of the
mortgage term;
‘‘(2) adjusted by the mortgagee upon the expi-
ration of the specified period referred to in para-
graph (1) for the mortgage; and
‘‘(3) for the term of the mortgage remaining
after such adjustment—
‘‘(A) fixed at the adjusted rate established
pursuant to paragraph (2); or
‘‘(B) periodically adjusted by the mortga-
gee.
‘‘(b) REDETERMINATION OF RATE.—For each mort-
gage insured pursuant to this section, the adjustment of
the effective rate of interest pursuant to subsection (a)(2)
may be accomplished through adjustments in the monthly
payment amount, the outstanding principal balance, or the
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mortgage term, or a combination of such factors, except
that in no case may any extension of a mortgage term
result in a total term in excess of 40 years. The adjust-
ment in the effective rate of interest shall correspond to
a specified national interest rate index that is approved
in regulations issued by the Secretary and information on
which is readily accessible to the mortgagors from gen-
erally available published sources.
‘‘(c) LIMITATIONS
ON
SECOND-STEP
PERIODIC
RATES.—For each mortgage insured pursuant to this sec-
tion for which the effective rate of interest charged pursu-
ant to subsection (a)(3) is periodically adjusted under sub-
paragraph (B) of such subsection, such adjustments in the
interest rate—
‘‘(1) may be accomplished through adjustments
in the monthly payment amount, the outstanding
principal balance, or the mortgage term, or a com-
bination of such factors, except that in no case may
any extension of a mortgage term result in a total
term in excess of 40 years;
‘‘(2) shall correspond to a specified national in-
terest rate index that is approved in regulations is-
sued the Secretary and information on which is
readily accessible to the mortgagors from generally
available published sources;
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‘‘(3) shall be made on an annual basis;
‘‘(4) shall be limited, with respect to any single
interest rate increase, to no more than 1 percent on
the outstanding loan balance; and
‘‘(5) be limited to a maximum increase of 5 per-
centage points above the initial contract interest rate
over the term of the mortgage.
‘‘(d) CONDITIONS ON INSURING AUTHORITY.—The
Secretary may insure mortgages pursuant to this section
only after determining that the risk posed by such insur-
ance to the financial safety and soundness of the insurance
fund of which the mortgage insurance is an obligation does
not exceed such risk posed by insurance of mortgages of
equivalent terms having fixed interest rates over such
terms.
‘‘(e) DESCRIPTION OF FEATURES.—The Secretary
shall issue regulations requiring that the mortgagee make
available to the mortgagor, at the time of loan application,
a written explanation of the features of the 2-step mort-
gage insured pursuant to this section.
‘‘(f) LIMITATION OF TOTAL NUMBER OF MORTGAGES
INSURED.—The aggregate number of mortgages and
loans insured pursuant to this section in any fiscal year
may not exceed 10 percent of the aggregate number of
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mortgages and loans insured by the Secretary under this
title during the preceding fiscal year.’’.
SEC. 416. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS
IN HIGH-COST AREAS.
(a) IN GENERAL.—Each of the provisions under sub-
section (b) is amended by striking ‘‘140 percent’’ and in-
serting ‘‘152 percent’’.
(b) PROVISIONS AMENDED.—The provisions under
this subsection are the following sections of title II of the
National Housing Act (12 U.S.C. 1707 et seq.):
(1) Section 207(c)(3).
(2) Section 213(b)(2).
(3) Section 220(d)(3)(B)(iii).
(4) Section 221(d)(3)(ii).
(5) Section 221(d)(4)(ii).
(6) Section 231(c)(2).
(7) Section 234(e)(3).
SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYS-
TEMS AND TESTING OF SYSTEMS.
(a) IN GENERAL.—Section 424 of the Housing and
Community Development Act of 1987 (12 U.S.C. 1701z–
15) is amended—
(1) in subsection (a), by inserting after the pe-
riod at the end the following new sentence: ‘‘The
Secretary of Housing and Urban Development shall
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provide for the approval under subsection (c) of both
point-of-use and point-of-entry water treatment
equipment and water purification systems that meet
the standards established under this section.’’;
(2) in the first sentence of subsection (b), by
striking ‘‘general standards recognized by the De-
partment as modified for local or regional condi-
tions’’ and inserting the following: ‘‘standards for
testing using (1) industry-accepted product testing
protocols, or (2) protocols that utilize technically
valid methodology using analytical testing methods
of the Environmental Protection Agency for drinking
water quality and maximum contaminant levels or
equivalent methods’’;
(3) by redesignating subsection (b) (as amended
by paragraph (2) of this section) as subsection (c);
and
(4) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) POINT-OF-USE EQUIPMENT.—For any property
in which the water treatment or purification system in op-
eration employs point-of-use equipment, the Secretary
may not require that a treatment or purification system
be employed on any water supply source serving the prop-
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erty that provides water that will not be used primarily
for human consumption.’’.
(b) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue any regulations necessary
to carry out section 424 of the Housing and Community
Development Act of 1987, as amended by subsection (a)
of this section, not later than the expiration of the 6-
month period beginning on the date of the enactment of
this Act.
SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PRO-
GRAM.
Section 106 of the Energy Policy Act of 1992 (42
U.S.C. 12712 note) is amended—
(1) in subsection (a)(2)—
(A) in subparagraph (A), by inserting
‘‘(which may be an adjustable rate mortgage in-
sured under section 251 of such Act and may
be a mortgage for a property that is not the
principal or secondary residence of the mortga-
gor to the extent provided in section 203(g) of
such Act)’’ after ‘‘Act’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(D) RATING
AND
INSTALLATION.—The
program shall provide that the person conduct-
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ing the home energy rating report under sub-
section (c)(2) for the property subject to the en-
ergy efficient mortgage may also, subject only
to the approval of the mortgagee and mortga-
gor, install the energy efficiency improve-
ments.’’; and
(2) in subsection (c)—
(A) in paragraph (1), by inserting ‘‘(in-
cluding an adjustable rate mortgage loan eligi-
ble for insurance under section 251 of such
Act)’’ after ‘‘Act’’; and
(B) in the first sentence of paragraph (2),
by striking ‘‘the total present value cost’’ and
all that follows through the end of the sentence
and inserting the following: ‘‘energy improve-
ments that generate energy savings in the first
year after improvement that are greater than
the increase in the amount of the loan payment
for such first-year due to the energy improve-
ments. In the case of a base loan insured under
section 251 of the National Housing Act, the
interest rate used to determine the amount of
such increase in the loan payment shall be the
maximum allowable interest rate under the
mortgage.’’.
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SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT
DEMONSTRATIONS.
Section 542 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended—
(1) in subsection (b)(5), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’; and
(2) in subsection (c)(4), by striking ‘‘1993,
1994, and 1995’’ and inserting ‘‘1995, 1996, and
1997’’.
SEC. 420. INDIAN HOUSING LOAN GUARANTEES.
(a) LIMITATION
ON
OUTSTANDING
AGGREGATE
PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1515z–13a(i)(5)(C)) is amended by striking ‘‘fiscal years
1993 and 1994’’ and inserting ‘‘fiscal years 1995 and
1996’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR-
ANTEE FUND.—Section 184(i)(7) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1515z–
13a(i)(7)) is amended to read as follows:
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the
Guarantee 
Fund 
to 
carry 
out 
this 
section
$50,000,000 for fiscal year 1995 and $50,000,000
for fiscal year 1996.’’.
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SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE
FEDERAL HOUSING ADMINISTRATION.
(a) PURPOSE.—The purpose of this section is to es-
tablish a national commission to develop recommendations
regarding the appropriate future role of the Federal Gov-
ernment in providing mortgage insurance, for modernizing
and improving the structure and operations of the Federal
Housing Administration, for protecting the safety and
soundness of the insurance funds of the FHA, and for
serving families currently underserved by the mortgage fi-
nance system.
(b) ESTABLISHMENT.—There is hereby established a
commission to be known as the National Commission on
the Future of the Federal Housing Administration.
(c) MEMBERSHIP.—
(1) IN GENERAL.—The Commission shall con-
sist of the Secretary of Housing and Urban Develop-
ment and 16 members appointed, not later than 60
days after amounts to carry out this section are
made available under subsection (h), as follows:
(A) 4 members shall be appointed by the
Chairman of the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and 4
members shall be appointed by the Ranking Mi-
nority Member of such Committee.
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HR 3838 PCS
(B) 4 members shall be appointed by the
Chairman of the Committee on Banking, Fi-
nance and Urban Affairs of the House of Rep-
resentatives and 4 members shall be appointed
by the Ranking Minority Member of such Com-
mittee.
(2) QUALIFICATIONS.—The 8 members of the
Commission appointed under each of subparagraphs
(A) and (B) of paragraph (1) shall include—
(A) 1 individual who represents the mort-
gage finance industry;
(B) 1 individual with knowledge and expe-
rience from a secondary mortgage market en-
tity;
(C) 1 individual with knowledge and expe-
rience concerning home sales or multifamily
housing management;
(D) 1 individual who represents the private
mortgage insurance industry;
(E) 1 individual with knowledge and expe-
rience concerning single family or multifamily
housing asset management;
(F) 1 individual who represents a State or
local housing agency active in single family or
multifamily housing activities;
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(G) 1 individual who represents the inter-
ests of consumers or communities, in single
family or multifamily housing; and
(H) 1 individual who represents or resides
in an urban or rural neighborhood whose resi-
dents consist predominantly of members of mi-
norities.
(3) CHAIRPERSON.—The Commission shall elect
a chairperson from among members of the Commis-
sion.
(4) QUORUM.—A majority of the members of
the Commission shall constitute a quorum for the
transaction of business.
(5) VOTING.—Each member of the Commission
shall be entitled to 1 vote, and all votes shall be
given equal weight.
(6) VACANCIES.—Any vacancy on the Commis-
sion shall not affect the powers of the Commission
and shall be filled in the manner in which the origi-
nal appointment was made.
(7) PROHIBITION ON ADDITIONAL PAY.—Mem-
bers of the Commission shall serve without com-
pensation, but shall be reimbursed for travel, sub-
sistence, and other necessary expenses incurred in
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the performance of their duties as members of the
Commission.
(d) SUBCOMMITTEES.—In carrying out its duties
under subsection (e), the Commission shall establish 2
subcommittees, 1 of which shall carry out such duties with
respect to issues relating to mortgage insurance for multi-
family housing and 1 of which shall carry out such duties
with respect to issues relating to mortgage insurance for
single family housing.
(e) DUTIES.—
(1) IN GENERAL.—The Commission shall con-
duct a study of the existing operations of the FHA
and shall make recommendations regarding the fu-
ture mission, organization, responsibilities, and func-
tion of the FHA. In conducting the study and for-
mulating recommendations, the Commission shall—
(A) determine the most appropriate role
for the Federal Government in extending the
availability of mortgage credit and review var-
ious alternative mortgage products and, with
regard to the mission and functions of the
FHA, the appropriateness of the use of such
products by the FHA;
(B) determine whom FHA programs are
intended to serve;
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(C) consider whether the FHA could func-
tion more effectively if organized as a govern-
ment corporation, a government-sponsored en-
terprise, or with any other organizational struc-
ture different from the existing structure;
(D) consider whether the personnel, pro-
curement, budgeting, and other requirements
generally applicable to the Federal agencies
should be modified in their applicability to the
FHA;
(E) review the laws establishing and relat-
ing to the FHA and determine whether amend-
ments to such law would be appropriate to re-
structure the FHA, or to provide new authority
or increased flexibility for the operations of the
FHA;
(F) determine ways in which the FHA can
more effectively contribute to the revitalization
of inner cities and increase housing opportuni-
ties for low-income families;
(G) determine ways to improve the man-
agement and sale of assets owned by the FHA;
(H) determine ways to reduce the risk of
future insurance losses from the existing inven-
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tory of outstanding mortgages insured by the
FHA; and
(I) determine ways to improve the private
management of multifamily properties insured
by the FHA.
(2) INTERIM REPORT.—Not later than the expi-
ration of the 10-month period beginning upon the
appointment of all of the members of the Commis-
sion under subsection (c), the Commission shall sub-
mit to the Secretary of Housing and Urban Develop-
ment and to the Congress an interim report contain-
ing the preliminary information and evaluations
specified in paragraph (1) and initial recommenda-
tions for legislative and administrative actions to
carry out the determinations made pursuant to para-
graph (1).
(3) REPORT.—Not later than the expiration of
the 18-month period beginning upon the appoint-
ment of all of the members of the Commission under
subsection (c), the Commission shall submit to the
Secretary of Housing and Urban Development and
to the Congress a report containing the information
and evaluations specified in paragraph (1) and spe-
cific recommendations for legislative and administra-
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tive actions to carry out the determinations made
pursuant to paragraph (1).
(f) POWERS.—
(1) HEARINGS.—The Commission may, for the
purpose of carrying out this section, hold such hear-
ings and sit and act at such times and places as the
Commission considers appropriate.
(2) RULES AND REGULATIONS.—The Commis-
sion may adopt such rules and regulations as may
be necessary to establish its procedures and to gov-
ern the manner of its operations, organization, and
personnel.
(3) ASSISTANCE FROM FEDERAL AGENCIES.—
(A) INFORMATION.—The Commission may
secure directly from any department or agency
of the United States such data and information
as the Commission may require for the purpose
of carrying out this section. Upon request of
the Commission, any such department or agen-
cy shall furnish such data or information. The
Commission may acquire data or information
directly from such departments or agencies to
the same extent that the Secretary may acquire
such data or information.
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(B) 
ADMINISTRATIVE
SUPPORT.—The
General Services Administration shall provide to
the Commission, on a reimbursable basis, ad-
ministrative support services requested by the
Commission.
(C) PERSONNEL DETAILS.—Upon the re-
quest of the chairperson of the Commission, the
Secretary shall, to the extent possible and sub-
ject to the discretion of the Secretary, detail
any of the personnel of the Department of
Housing 
and 
Urban 
Development, 
on 
a
nonreimbursable basis, to assist the Commis-
sion in carrying out its duties under this
section.
(4) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other Federal agencies.
(5) CONTRACTING.—The Commission may, to
such extent and in such amounts as are provided in
appropriations Acts, enter into contracts necessary
to carry out its duties under this section.
(6) ADVISORY
COMMITTEE.—The Commission
shall be considered an advisory committee within the
meaning of the Federal Advisory Committee Act.
(7) STAFF.—
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(A) EXECUTIVE DIRECTOR.—The Commis-
sion shall appoint an executive director of the
Commission who shall be compensated at a rate
fixed by the Commission, but which may not ex-
ceed the rate established for level V of the Ex-
ecutive Schedule under title 5, United States
Code.
(B) PERSONNEL.—In addition to the exec-
utive director, the Commission may appoint and
fix the compensation of such personnel as the
Commission considers appropriate, in accord-
ance with the provisions of title 5, United
States Code, governing appointments in the
competitive service, and the provisions of chap-
ter 51 and subchapter III of chapter 53 of such
title, relating to classification and General
Schedule pay rates.
(C) LIMITATION.—This paragraph shall be
effective only to the extent amounts are made
available in appropriation Acts.
(g) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) The term ‘‘Commission’’ means the Na-
tional Commission on the Future of the Federal
Housing Administration.
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(2) The term ‘‘FHA’’ means the Federal Hous-
ing Administration of the Department of Housing
and Urban Development.
(3) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
(h) FUNDING.—Of any amounts appropriated pursu-
ant to section 501 of the Housing and Urban Development
Act of 1970, the Secretary shall set aside to carry out
this section $1,000,000 for fiscal year 1995. Any amounts
made available pursuant to this subsection shall remain
available until expended.
(i) SUNSET.—The Commission shall terminate upon
the expiration of the 18-month period that begins upon
the appointment of all of the members of the Commission
under subsection (c).
SEC. 422. ACTION AND REPORT ON COOPERATIVE HOME-
OWNERSHIP FOR LOW- AND MODERATE-IN-
COME FAMILIES.
(a) REVIEW.—The Secretary of Housing and Urban
Development, acting through the Assistant Secretary who
is the Federal Housing Commissioner, shall review the re-
port of The Urban Institute, dated May 1994 and entitled
‘‘Performance of HUD Subsidized Loans: Does Coopera-
tive Housing Matter?’’.
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(b) ACTION.—Not later than 9 months after the date
of the enactment of this Act, the Secretary shall imple-
ment any recommendations made in the report referred
to in subsection (a) that (1) the Secretary considers appro-
priate and feasible, (2) are within the jurisdiction of the
Assistant Secretary referred to in subsection (a), and (3)
the Secretary has authority under law to implement.
(c) REPORT.—The Secretary shall submit a report to
the Congress not later than 9 months after the date of
the enactment of this Act, which shall—
(1) evaluate the report referred to in subsection
(a);
(2) describe any action taken under subsection
(b);
(3) identify and proposes the elimination of any
Federal housing policies or programs that, in the de-
termination of the Secretary, inhibit the development
of cooperative homeownership for low- and mod-
erate-income families; and
(4) recommend any legislative action necessary
to eliminate the policies or programs identified
under paragraph (3).
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SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE
BANKERS AND INSURERS.
(a) STUDY.—The Secretary of Housing and Urban
Development shall conduct a study to determine the pat-
terns of lending and insurance activity of private mortgage
lenders and private mortgage insurers, respectively. The
study shall be designed to determine—
(1) the geographical areas in which properties
are located for which loans are made by private
mortgage lenders and the characteristics of such
areas;
(2) the extent of lending activity by private
mortgage lenders, in terms of number of loans and
principal amount, in areas having a low median in-
come, a moderate median income, and other areas;
(3) the types of loans made by private mortgage
lenders, and the extent of lending activity, in each
of the areas described in paragraph (2), which shall
include the types and extent of any lending activity
made in connection with economic development of
low- and moderate-income areas;
(4) the geographical areas in which properties
are located for which mortgage insurance is provided
by private mortgage insurers and the characteristics
of such areas;
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(5) the extent of insurance activity by private
mortgage insurers, in terms of number of loans in-
sured and principal amount insured, in areas having
a low median income, a moderate median income,
and other areas; and
(6) the types of loans insured and extent of in-
surance activity by private mortgage insurers in each
of the areas described in paragraph (5), which shall
include the types and extent of any insurance activ-
ity made in connection with mortgages or loans for
economic development activity in low- and moderate-
income areas.
(b) REPORT.—The Secretary shall submit a report to
the Congress describing the results of the study under this
section not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘private mortgage insurer’’ means
a person who provides insurance against the
nonpayment of, or default on, a mortgage or loan
for residential or commercial property that is not in-
surance made available under the National Housing
Act, title 38 of the United States Code, or title V
of the Housing Act of 1949; and