Community Investment Demonstration Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Investment Demonstration 
Act of 1993''.

SEC. 2. SECTION 8 COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

    (a) Authority.--Using amounts available pursuant to section 
5(c)(7)(B)(ii) of the United States Housing Act of 1937, the Secretary 
of Housing and Urban Development (in this section referred to as the 
``Secretary'') shall carry out a demonstration program to provide 
project-based rental assistance under section 8 of such Act on behalf 
of low-income families residing in housing that is constructed, 
rehabilitated, or acquired pursuant to a loan or other financing from 
an eligible pension fund. Notwithstanding section 514(d) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1144(d)), 
nothing in this section shall be construed to authorize any action or 
failure to act that would otherwise constitute a violation of such Act 
with respect to an eligible pension fund.
    (b) Contract Terms.--Assistance provided under the demonstration 
under this section with respect to eligible housing--
            (1) shall be project-based assistance that is attached to 
        the eligible housing; and
            (2) shall be provided pursuant to a contract entered into 
        by the Secretary and the owner of the eligible housing that--
                    (A) provides such assistance for a term of not less 
                than 60 months and not more than 180 months; and
                    (B) provides that the contract rents for dwelling 
                units in the eligible housing shall be determined by 
                the Secretary taking into consideration any costs for 
                construction, rehabilitation, or acquisition of the 
                housing, except that such contract rent may not exceed 
                the contract rent permitted pursuant to section 8 of 
                the United States Housing Act of 1937.
    (c) Eligible Housing.--The Secretary may enter into a commitment to 
provide assistance pursuant to this section with respect to a housing 
project only if--
            (1) the housing is--
                    (A) a multifamily housing project owned by the 
                Secretary or subject to a mortgage held by the 
                Secretary that is delinquent, under a workout 
                agreement, or being foreclosed upon by the Secretary;
                    (B) designated by the Secretary under section 24(b) 
                of the United States Housing Act of 1937 as a severely 
                distressed public housing project;
                    (C) a multifamily housing project eligible for 
                assistance for troubled projects under section 201 of 
                the Housing and Community Development Amendments of 
                1978;
                    (D) a multifamily housing project located in a 
                empowerment zone or enterprise community designated 
                pursuant to Federal law; or
                    (E) any other multifamily housing project, 
                including a project to be occupied by homeless persons 
                (as such term is defined in section 103 of the Stewart 
                B. McKinney Homeless Assistance Act) or homeless 
                families;
            (2) the Secretary determines that the owner of the housing 
        has obtained commitments, satisfactory in the determination of 
        the Secretary, for financing for the construction, acquisition, 
        or rehabilitation of the housing from an eligible pension fund;
            (3) the mortgage for the housing meets standards regarding 
        securitization and such additional standards regarding 
        financing as the Secretary may establish;
            (4) in the case of any housing that is to be constructed, 
        the Secretary determines that the owner of the housing has 
        provided reasonable assurances to the Secretary that the owner 
        will own or have control of a site for the housing (which may 
        be a suitable site different from the site specified in the 
        application under subsection (d)) not later than 12 months 
        after notification of the award of assistance under this 
        section;
            (5) the housing and any work done with respect to the 
        housing will comply with any applicable environmental laws or 
        regulations;
            (6) the construction, rehabilitation, or acquisition of the 
        housing is not inconsistent with the approved comprehensive 
        housing affordability strategy under title I of the Cranston-
        Gonzalez National Affordable Housing Act for the jurisdiction 
        in which the housing is located; and
            (7) the housing complies with any other requirements 
        established by the Secretary to carry out the demonstration 
        under this section.
    (d) Applications.--The Secretary shall provide for the owners of 
eligible housing, together with the eligible pension funds providing 
financing for the housing, to jointly submit applications for 
assistance under this section. An application shall include a 
description of the housing to be constructed, rehabilitated, or 
acquired, the location of the housing (or the site for the construction 
of the housing), the terms of the financing by the eligible pension 
fund, a request for a specific amount of assistance under this section 
for a specific term, and such other information as the Secretary may 
require.
    (e) Selection and Determination of Assistance.--
            (1) In general.--The Secretary shall select eligible 
        housing for assistance under this section from among 
        applications submitted pursuant to subsection (d) and, subject 
        to the provisions of this section, shall determine the amount 
        of assistance to be provided for selected housing that is 
        appropriate to maintain the affordability and feasibility of 
        the housing.
            (2) Limitation.--Of any amounts made available for the 
        demonstration under this section pursuant to the amendment made 
        by subsection (l) of this section, during the 6-month period 
        beginning on the date that such amounts first are made 
        available by the Secretary for assistance under this section, 
        the Secretary may not provide (or make any commitment to 
        provide) more than 50 percent of such amounts for assistance 
        for eligible housing financed by any single eligible pension 
        fund.
    (f) Relation to PHA Project-Based Limit.--Project-based assistance 
provided under this section shall not be considered for purposes of any 
percentage limitation under section 8(d)(2)(A) or (B) of the United 
States Housing Act of 1937 regarding the amount of assistance under 
such section that may be attached to the structure.
    (g) Use in Property Disposition Program.--
            (1) Authority.--Notwithstanding any provision of section 
        203 of the Housing and Community Development Amendments of 
        1978, assistance provided in connection with the disposition of 
        a multifamily housing project under such section 203 may have a 
        contract term of less than 15 years if such assistance is 
        provided (A) under a contract under the demonstration under 
        this section, and (B) pursuant to a disposition plan under such 
        section 203 for the project that is approved under such section 
        by the Secretary as otherwise in compliance with the 
        requirements of such section.
            (2) Allocation.--Of the amounts made available in each 
        fiscal year for assistance under the demonstration under this 
        section, a significant amount may be used in connection with 
        the disposition under section 203 of the Housing and Community 
        Development Amendments of 1978 of eligible housing.
    (h) Reports.--
            (1) GAO.--The Comptroller General of the United States 
        shall submit to the Congress reports under this paragraph 
        evaluating the effectiveness of the demonstration under this 
        section. Such reports shall be submitted not later than the 
        expiration of the 2-year period beginning on the date of the 
        enactment of this section and not later than the expiration of 
        the 6-month period beginning upon the termination date under 
        subsection (k).
            (2) Secretary.--The Secretary shall submit an annual report 
        to the Congress for each fiscal year in which the Secretary 
        provides assistance pursuant to contracts entered into under 
        this section. The reports shall summarize the activities 
        carried out under this section, describe the housing assisted 
        and the amounts of assistance provided, and include any 
        findings and recommendations of the Secretary as a result of 
        the demonstration under this section. Each such report shall be 
        submitted not later than the expiration of the 3-month period 
        beginning upon the conclusion of the fiscal year for which the 
        report is made.
    (i) Definitions.--For purposes of this section:
            (1) The term ``eligible housing'' means housing for which 
        the requirements under subsection (c) have been met.
            (2) The term ``eligible pension fund'' means any--
                    (A) trust, fund, plan, or other program established 
                or maintained by any employer or other person for the 
                purpose of providing income or benefits to employees 
                after the termination of employment or deferring income 
                by employees until after the termination of employment, 
                or
                    (B) other entity that invests principally the 
                amounts of any trust, fund, plan, or other program 
                referred to in subparagraph (A),
        that the Secretary considers appropriate for purposes of this 
        section.
    (j) Regulations.--The Secretary shall issue any final regulations 
necessary to carry out this section not later than the expiration of 
the 45-day period beginning on the date of the enactment of this 
section.
    (k) Termination Date.--The Secretary may not enter into any new 
commitment to provide assistance under this section after September 30, 
1998.
    (l) Funding.--Section 5(c)(7)(B)(ii) of the United States Housing 
Act of 1937 (42 U.S.C. 1437c(c)(7)(B)(ii)) is amended by inserting 
after ``8(i)(2);'' the following: ``and of which not more than 
$100,000,000 shall be available for the community investment 
demonstration program under section 5 of the Homeless and Community 
Development Amendments Act of 1993;''.

            Passed the House of Representatives August 2, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.

Summary: Community Investment Demonstration Act of 1993 - Directs the Secretary of Housing and Urban Development to carry out a community investment demonstration program through FY 1998 to provide project-based rental assistance (under section 8 of the United States Housing Act of 1937) on behalf of low-income families in specified housing that is constructed, rehabilitated, or acquired pursuant to a loan or other financing from an eligible pension fund. Prohibits for the first six months any single pension fund from receiving more than half the authorized assistance. Requires the General Accounting Office to evaluate the program's effectiveness. Obligates specified funds for the program from section 8 amounts under the United States Housing Act of 1937.