To reauthorize the HOPE VI program for revitalization of severely distressed public housing and to provide financial assistance under such program for main street revitalization or redevelopment projects in smaller communities to support the development of affordable housing for low-income families in connection with such projects, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``HOPE VI Program Reauthorization and 
Small Community Mainstreet Rejuvenation and Housing Act of 2003''.

SEC. 2. HOPE VI PROGRAM REAUTHORIZATION.

    (a) Selection Criteria.--Section 24(e)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--
            (1) by striking the matter preceding subparagraph (A) and 
        inserting the following:
            ``(2) Selection criteria.--The Secretary shall establish 
        criteria for the award of grants under this section and shall 
        include among the factors--'';
            (2) in subparagraph (B), by striking ``large-scale'';
            (3) in subparagraph (D)--
                    (A) by inserting ``and ongoing implementation'' 
                after ``development''; and
                    (B) by inserting ``, except that the Secretary may 
                not award a grant under this section unless the 
                applicant has involved affected public housing 
                residents at the beginning and during the planning 
                process for the revitalization program, prior to 
                submission of an application'' before the semicolon at 
                the end;
            (4) in subparagraph (H), by striking ``and'' at the end;
            (5) by redesignating subparagraph (I) as subparagraph (M); 
        and
            (6) by inserting after subparagraph (H) the following new 
        subparagraphs:
                    ``(I) the extent to which the applicant can 
                commence and complete the revitalization plan 
                expeditiously;
                    ``(J) the extent to which the plan minimizes 
                temporary or permanent displacement of current 
                residents of the public housing site who wish to remain 
                in or return to the revitalized community and provides 
                for community and supportive services to residents 
                prior to any relocation;
                    ``(K) the extent to which the plan sustains or 
                creates more project-based housing units available to 
                persons eligible for public housing in markets where 
                there is demand for the maintenance or creation of such 
                units;
                    ``(L) the extent to which the plan gives to 
                existing residents priority for occupancy in dwelling 
                units in the revitalized community; and''.
    (b) Definition of Severely Distressed Public Housing.--Section 
24(j)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C. 
1437v(j)(2)(A)(iii)) is amended--
            (1) in subclause (I)--
                    (A) by inserting ``or very low-income elderly or 
                non-elderly disabled persons'' before the first comma; 
                and
                    (B) by striking ``or'' at the end;
            (2) in subclause (II), by inserting ``or'' after the 
        semicolon at the end; and
            (3) by inserting at the end the following new subclause:
                            ``(III) is lacking in sufficient 
                        appropriate transportation, supportive 
                        services, economic opportunity, schools, civic 
                        and religious institutions, and public 
                        services, resulting in severe social distress 
                        in the project;''.
    (c) Authorization of Appropriations.--Paragraph (1) of section 
24(m) of the United States Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) 
is amended by inserting before the period at the end the following: 
``and such sums as may be necessary for each of fiscal years 2004 and 
2005''.
    (d) Extension of Program.--Section 24(n) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(n)) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2005''.

SEC. 3. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING THROUGH MAIN 
              STREET PROJECTS.

    (a)  Purposes.--Section 24(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(a)) is amended by adding after and below 
paragraph (4) the following:
``It is also the purpose of this section to provide assistance to 
smaller communities for the purpose of facilitating the development of 
affordable housing for low-income families that is undertaken in 
connection with a main street revitalization or redevelopment project 
in such communities.''.
    (b) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--Section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) by redesignating subsection (n) as subsection (o); and
            (2) by inserting after subsection (m) the following new 
        subsection:
    ``(n) Grants for Assisting Affordable Housing Developed Through 
Main Street Projects in Smaller Communities.--
            ``(1) Authority and use of grant amounts.--The Secretary 
        may make grants under this subsection to smaller communities. 
        Such grant amounts shall be used by smaller communities only to 
        provide assistance to carry out eligible affordable housing 
        activities under paragraph (3) in connection with an eligible 
        project under paragraph (2).
            ``(2) Eligible project.--For purposes of this subsection, 
        the term `eligible project' means a project that--
                    ``(A) the Secretary determines, under the criteria 
                established pursuant to paragraph (3), is a main street 
                project;
                    ``(B) is carried out within the jurisdiction of 
                smaller community receiving the grant; and
                    ``(C) involves the development of affordable 
                housing that is located in the commercial area that is 
                the subject of the project.
            ``(3) Main street projects.--The Secretary shall establish 
        requirements for a project to be consider a main street project 
        for purposes of this section, which shall require that the 
        project--
                    ``(A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional commercial 
                area;
                    ``(B) involves investment, or other participation, 
                by the government for, and private entities in, the 
                community in which the project is carried out; and
                    ``(C) complies with such historic preservation 
                guidelines or principles as the Secretary shall 
                identify to preserve significant historic or 
                traditional architectural and design features in the 
                structures or area involved in the project.
            ``(4) Eligible affordable housing activities.--For purposes 
        of this subsection, the activities described in subsection 
        (d)(1) shall be considered eligible affordable housing 
        activities, except that--
                    ``(A) such activities shall be conducted with 
                respect to affordable housing rather than with respect 
                to severely distressed public housing projects; and
                    ``(B) eligible affordable housing activities under 
                this subsection shall not include the activities 
                described in subparagraphs (B) through (F) or (J) 
                through (L) of subsection (d)(1).
            ``(5) Maximum grant amount.--A grant under this subsection 
        for a fiscal year for a single smaller community may not exceed 
        $1,000,000.
            ``(6) Contribution requirement.--A smaller community 
        applying for a grant under this subsection shall be considered 
        an applicant for purposes of subsection (c) (relating to 
        contributions by applicants), except that--
                    ``(A) such supplemental amounts shall be used only 
                for carrying out eligible affordable housing 
                activities; and
                    ``(B) paragraphs (1)(B) and (3) shall not apply to 
                grants under this subsection.
            ``(7) Applications and selection.--
                    ``(A) Application.--Pursuant to subsection (e)(1), 
                the Secretary shall provide for smaller communities to 
                apply for grants under this subsection, except that the 
                Secretary may establish such separate or additional 
                criteria for applications for such grants as may be 
                appropriate to carry out this subsection.
                    ``(B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of grants 
                under this subsection, which shall be based on the 
                selection criteria established pursuant to subsection 
                (e)(2), with such changes as may be appropriate to 
                carry out the purposes of this subsection.
            ``(8) Cost limits.--The cost limits established pursuant to 
        subsection (f) shall apply to eligible affordable housing 
        activities assisted with grant amounts under this subsection.
            ``(9) Inapplicability of other provisions.--The provisions 
        of subsections (g) (relating to disposition and replacement of 
        severely distressed public housing), (h) (relating to 
        administration of grants by other entities), and (i) (relating 
        to withdrawal of funding) shall not apply to grants under this 
        subsection.
            ``(10) Reporting.--The Secretary shall require each smaller 
        community receiving a grant under this subsection to submit a 
        report regarding the use of all amounts provided under the 
        grant.
            ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Affordable housing.--The term `affordable 
                housing' means rental or homeownership dwelling units 
                that--
                            ``(i) are made available for initial 
                        occupancy subject to the same rules regarding 
                        level of income and income mix as dwelling 
                        units in public housing projects assisted with 
                        a grant under this section; and
                            ``(ii) are subject to the same rules 
                        regarding occupant contribution toward rent or 
                        purchase and terms of rental or purchase as 
                        dwelling units in public housing projects 
                        assisted with a grant under this section.
                    ``(B) Smaller community.--The term `smaller 
                community' means a unit of general local government (as 
                such term is defined in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302)) 
                that--
                            ``(i) has a population of 30,000 or fewer; 
                        and
                            ``(ii)(I) is not served by a public housing 
                        agency; or
                            ``(II) is served by a single public housing 
                        agency, which agency administers 100 or fewer 
                        public housing dwelling units.''.
    (c) Annual Report.--Section 24(l) of the United States Housing Act 
of 1937 (42 U.S.C. 1437v(l)) is amended--
            (1) in paragraph (3), by striking ``; and'' and inserting 
        ``, including a specification of the amount and type of 
        assistance provided under subsection (n);'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) the types of projects funded, and number of 
        affordable housing dwelling units developed with, grants under 
        subsection (n); and''.
    (d) Funding.--Section 24(m) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(m)) is amended by adding at the end the following 
new paragraph:
            ``(3) Set-aside for main street housing grants.--Of the 
        amount appropriated pursuant to paragraph (1) for any fiscal 
        year, the Secretary shall provide up to 5 percent for use only 
        for grants under subsection (n).''.

Summary: HOPE VI Program Reauthorization and Small Community Mainstreet Rejuvenation and Housing Act of 2003 - (Sec. 2) Amends the United States Housing Act of 1937 to revise criteria for HOPE VI (urban revitalization demonstration program) grants, including addition of criteria regarding tenant displacement, existing tenant occupancy priority, and timeliness of project completion.Revises the definition of "severely distressed public housing" to include: (1) buildings or projects that include very low-income elderly or nonelderly disabled persons; and (2) areas lacking sufficient affordable housing, transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services.Authorizes FY 2004 and 2005 appropriations. Extends program authority through September 30, 2005.(Sec. 3) Includes within the program's purposes assisting smaller communities to provide affordable low-income housing in connection with main street revitalization or redevelopment projects.Authorizes main street grants (maximum $1 million per year) to smaller communities for affordable low-income housing in a commercial area in connection with an eligible project.Requires that a project be focused on: (1) joint public-private revitalization or redevelopment of a historic or traditional commercial area; and (2) affordable housing rather than severely distressed public housing.Defines "smaller community" as a local government unit that: (1) has a population of under 30,000, and is without a public housing agency; or (2) has a public housing agency that administers 100 or fewer public housing dwelling units.Defines "affordable housing" as rental or homeownership units that are made available for initial occupancy subject to the same income and occupant contribution rules as dwelling units in public housing projects assisted with HOPE VI grants.Obligates up to five percent of HOPE VI appropriations for smaller community grants.