Housing and Community Development Act of 1992
PL 102-550 (H.R.5334), enacted 10/28/1992

106 STAT. 3672 
PUBLIC LAW 102-550—OCT. 28, 1992 
Public Law 102-550 
102d Congress 
An Act 
Oct. 28, 1992 
[H.R. 5334] 
Housing and 
Community 
Development 
Act of 1992. 
42 use 5301 
note. 
To amend and extend certain laws relating to housing and community development, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—^This Act may be cited as the "Housing and 
Community Development Act of 1992". 
(b) TABLE OF CONTENTS.— 
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Short title and table of contents. 
Effective date. 
TITLE I—HOUSING ASSISTANCE 
Subtitle A—General Provisions 
101. Low-income housing authorization. 
102. Extension of ceiling rents. 
103. Definitions of income and a4justed income and applicability to Indian 
housing programs. 
104. Public ana section 8 housing tenant preference rules. 
105. Income eligibility for assist^ housing. 
106. Family self-sufficiency program. 
Subtitle B—^Public and Indian Housing 
111. Major reconstruction of obsolete projects. 
112. Public housing tenant preferences. 
113. Reform of public housing management. 
114. Public housing operating subsidies. 
115. Public housing vacancy reduction. 
116. Public housing demolition and disposition. 
117. Public housing resident management. 
118. Public housing homeownership. 
119. Public housing family investment centers. 
120. Revitalization of severely distressed public housing. 
121. Choice in public housing management. 
122. Assisted housing for Indians and Alaska Natives. 
123. Public housing early childhood development services. 
124. Indian housing childhood development services. 
125. Public housing one-stop perinatal services demonstration. 
126. Public housing youth sports programs. 
127. National Commission on Distressed Public Housing. 
128. National Commission on American Indian, Alaska Native, and Native Ha-
waiian Housing. 
129. Rental assistance fraud recoveries. 
130. Project-based accounting. 
131. Sede of certain scattered-site housing. 
132. Homeownership demonstration program in Omaha, Nebraska. 
Subtitle C—Section 8 Assistance 
141. Eligibility of low-income families to receive rental assistance. 
142. Contract adjustments for expiration of property tax exemption. 
143. Termination of contracts. 
144. Preferences for veterans with disabilities that prevent use of home. 
145. Termination of tenancy for criminal activity. 
146. Definitions of "project-based assistance" and "tenant-based assistance". 
147. Portability. 
148. Family unification assistance. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3673 
Sec. 149. Implementation of amendments to project-based certificate program. 
Sec. 150. Effectiveness of section 8 assistance for FHA-owned units. 
Sec. 151. Implementation of income eligibility provisions for section 8 new construc-
tion units. 
Sec. 152. Moving to opportimity for fair housing. 
Sec. 153. Directive to further fair housing objectives under certificate and voucher 
programs. 
Sec. 154. Housing assistance in Jefferson County, Texas. 
Sec. 155. Compliance of certain activities with limitations on project-based assist-
ance. 
Subtitle D—Other Programs 
Sec. 161. Public and assisted housing drug elimination. 
Sec. 162. Housing counseling. 
Sec. 163. Use of funds recaptured 
fix>m 
refinancing State and local finance projects. 
Sec. 164. HOPE for youth. 
Sec. 165. Extension for commencement of certain construction. 
Subtitle E—Homeownership Programs 
Sec. 181. HOPE programs. 
Sec. 182. National Homeownership Trust demonstration. 
Sec. 183. Nehemiah housing opportunity grants. 
Sec. 184. Loan guarantees for Indian housing. 
Sec. 185. Assistance under section 8 for homeownership. 
Sec. 186. Enterprise zone homeownership opportunity grants. 
Subtitle F—Implementation 
Sec. 191. Implementation. 
TITLE II—HOME INVESTMENT PARTNERSHIPS 
Sec. 201. Authorization of appropriations. 
Sec. 202. Home program thresholds. 
Sec. 203. Elimination of restrictions on new construction. 
Sec. 204. Policies and preference rules; use of tenant-based rental assistance 
amounts for security deposits. 
Sec. 205. Use of home funds for homeless assistance. 
Sec. 206. Per unit cost limits. 
Sec. 207. Administrative costs as eligible use of investment. 
Sec. 208. Affordable housing. 
Sec. 209. Homeownership resale restrictions. 
Sec. 210. Matching requirements. 
Sec. 211. Assistance for insular areas. 
Sec. 212. Community housing production set-aside. 
Sec. 213. Housing education and organizational support for community land trusts. 
Sec. 214. Land bank redevelopment. 
Sec. 215. Research in providing affordable housing through innovative building 
techniques and technology. 
Sec. 216. Use of innovative building technologies to provide cost-saving housing op-
portunities. 
Sec. 217. Definition of community housing development organization. 
Sec. 218. Inclusion of echo housing in definition of housing. 
Sec. 219. Eligibility of manufactured homeowners as first-time homebuyers. 
Sec. 220. Eligibility for assistance and contents of strategies. 
Sec. 221. Location of activities. 
Sec. 222. Regulations. 
Sec. 223. Retroactive application of home amendments. 
TITLE III—PRESERVATION OF LOW-INCOME HOUSING 
Subtitle A—^Prepajrment of Mortgages Insured Under National Housing Act 
Sec. 301. Authorization of appropriations. 
Sec. 302. Guidelines for appraisals of preservation value. 
Sec. 303. Second notice of intent. 
Sec. 304. Plan of action. 
Sec. 305. Approval of plan of action. 
Sec. 306. Receipt of incentives to extend low-income use. 
Sec. 307. Transfer to qualified purchasers. 
Sec. 308. Criteria for plan of action involving incentives. 
Sec. 309. Resident homeownership program. 
Sec. 310. Definition of eligible low-income housing. 
Sec. 311. Preemption of State and local laws. 
106 STAT. 3674 
PUBLIC LAW 102-550—OCT. 28, 1992 
Sec. 312. Technical assistance and capcuaty btiilding. 
Sec. 313. Transition provisions. 
Sec. 314. Conditions of assistance. 
Sec. 315. Delegated responsibility to State agencies. 
Sec. 316. Insurance for second mortgage financing. 
Sec. 317. Technical amendments. 
Sec. 318. Study of proj^rts assisted imder flexible subsidy program. 
Subtitle B—Other Preservation Provisions 
Sec. 331. Eligibility of public mortgagors for section 236 mortgage insurance. 
Sec. 332. Regulations. 
TITLE IV—MULTIFAMILY HOUSING PLANNING AND INVESTMENT 
STRATEGIES 
Sec. 401. Definitions. 
Sec. 402. Required submission. 
Sec. 403. Contents. 
Sec. 404. Submission and review. 
Sec. 405. Troubled multifamily housing. 
Sec. 406. Flexible subsidy program. 
Sec. 407. Capacity study. 
Sec. 408. Flexible subsidy program. 
TITLE V—MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET 
Subtitle A—^FHA Mortgage Insurance Programs 
Sec. 501. Limitation on insurance authority. 
Sec. 502. Federal Housing Administration Advisory Board. 
Sec. 503. Maximum mortgage amount. 
Sec. 504. FHA annual report. 
Sec. 505. Maximiun principal obligation of mortgages for veterans. 
Sec. 506. Prepurchase counseling requirement. 
Sec. 507. Authority to decrease insurance premium charges. 
Sec. 508. Statute of limitations on payment of distributive shares. 
Sec. 509. Mortgage limits for multifamily projects. 
Sec. 510. Insurance of loans for operating losses of multifamily projects. 
Sec. 511. Eligibility of assisted living facilities for mortgage insurance under sec-
tion 232. 
Sec. 512. Expediting insurance for acquisition of Resolution Trust Corporation 
property. 
Sec. 513. Energy enicient mortgages pilot program. 
Sec. 514. Study regarding home warranty plans. 
Sec. 515. Expenditures to correct defects. 
Sec. 516. Payment of mortgage insurance claims. 
Sec. 517. Coverage of the Miutifamily Mortgage Foreclosure Act. 
Sec. 518. Mortgagee Review Board. 
Sec. 519. Definition of mortgagee. 
Sec. 520. Exemption from section 137(b) of the Truth in Lending Act. 
Subtitle B—Secondary Mortgage Market Programs 
Sec. 531. Limitation on GNMA guarantees of mortgage-backed securities. 
Sec. 532. Authority for GNMA to make hardship interest pajrments. 
Subtitle C—Improvement of Financing for Multifamily Housing 
Sec. 541. Short title. 
Sec. 542. Multifamily mortgage credit demonstrations. 
Sec. 543. National interagency task force on multifamily housing. 
Sec. 544. Definitions. 
TITLE VI—HOUSING FOR ELDERLY PERSONS AND PERSONS WITH 
DISABILITIES 
Subtitle A—Supportive Housing Programs 
Sec. 601. Funding for supportive housing for the elderly and for {>ersons with dis-
abilities. 
Sec. 602. Supportive housing for the elderl]^. 
Sec. 603. Supportive housing for persons with disabilities. 
Sec. 604. Revised congregate housing services program. 
Sec. 605. HOPE for elderly independence. 
Sec. 606. Housing opportunities for persons with AIDS. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3675 
Subtitle B—Authority for Public Housing Agencies to Provide Designated Public 
Housing and Assistance for Disabled Families 
Sec. 621. Definitions. 
Sec. 622. Authority. 
Sec. 623. Tenant-based assistance for persons with disabilities. 
Sec. 624. Development and reconstruction of housing for disabled families. 
Sec. 625. Conforming amendments. 
Sec. 626. Inapplicability to Indian public housing. 
Subtitle C—Standards and Obligations of Residency in Federally Assisted Housing 
Sec. 641. Compliance by owners as condition of Federal assistance. 
Sec. 642. Compliance with criteria for occupancy as requirement for tenancy. 
Sec. 643. Establishment of criteria for occupancy. 
Sec. 644. Assisted applications. 
Subtitle D—^Authority to Provide Preferences for Elderly Residents and Units for 
Disabled Residents in Certain Section 8 Assisted Housing 
Sec. 651. Authority. 
Sec. 652. Reservation of units for disabled families. 
Sec. 653. Secondary preferences. 
Sec. 654. General availability of units. 
Sec. 655. Preference within groups. 
Sec. 656. Prohibition of evictions. 
Sec. 657. Treatment of covered section 8 housing not subject to elderly preference. 
Sec. 658. Treatment of other federally assisted housing. 
Sec. 659. Covered section 8 housing. 
Sec. 660. Section 8 preference. 
Sec. 661. Study. 
Subtitle E—Service Coordinators for Elderly and Disabled Residents of Federally 
Assisted Housing 
Sec. 671. Requirement to provide service coordinators. 
Sec. 672- Required training of service coordinators. 
Sec. 673. Costs of providing service coordinators in public housing. 
Sec. 674. Costs of providing service coordinators in project-based section 8 housing. 
Sec. 675. Costs of providing service coordinators for families receiving Federal ten-
ant-based assistance. 
Sec. 676. Grants for costs of providing service coordinators in multifamily housing 
assisted under National Housing Act. 
Sec. 677. Expanded responsibilities of service coordinators in section 202 housing. 
Subtitle F—General Provisions 
Sec. 681. Comprehensive housing affordability strategies. 
Sec. 682. Conforming amendments. 
Sec. 683. Definitions. 
Sec. 684. Applicability. 
Sec. 685. Regulations. 
TITLE VII—RURAL HOUSING 
Sec. 701. Program authorizations. 
Sec. 702. Eligibility of homes on leased land owned by community land trusts for 
section 502 loans. 
Sec. 703. Maximum income of borrowers under guaranteed loans. 
Sec. 704. Remote rural areas. 
Sec. 705. Designation of underserved areas and reservation of assistance. 
Sec. 706. Rural Housing Voucher program. 
Sec. 707. Rental housing loans. 
Sec. 708. Nonprofit set-aside. 
Sec. 709. Consideration of certain areas as rural areas. 
Sec. 710. Permanent authority for section 523. 
Sec. 711. Housing preservation grants for replacement of housing. 
Sec. 712. Preservation. 
Sec. 713. Disaster assistance. 
Sec. 714. Prohibition on transfer of rural housing programs. 
Sec. 715. Site acquisition and development. 
Sec. 716. Reciprocity in approval of housing subdivisions among Federal agencies. 
106 STAT. 3676 
PUBLIC LAW 102-550—OCT. 28, 1992 
TITLE VIII—COMMUNITY DEVELOPMENT 
Subtitle A—Community Development Block Grants 
Sec. 801. Community development authorizations. 
Sec. 802. Units of general local government. 
Sec. 803. Urban counties. 
Sec. 804. Retention of program income. 
Sec. 805. Economic development. 
Sec. 806. Evaluation, selection, and review of economic development projects. 
Sec. 807. Eligible activities. 
Sec. 808. Reference to Fair Housing Act. 
Sec. 809. Eligibility of enterprise zones. 
Sec. 810. Assistance for colonias. 
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Sec. 811. State set-aside for technical assistance. 
Sec. 812. Community development plans and reports. 
Sec. 813. Delay use of 1990 census housing data to examine effect on targeting for 
CDBG formula. 
Subtitle B—Other Community Development Programs 
Sec. 831. Neighborhood Reinvestment Corporation. 
Sec; 832. Neighborhood development program. 
Sec. 833. Study regarding housing technology research. 
Sec. 834. Designation of enterprise zones. 
Subtitle C—Miscellaneous Programs 
Sec. 851. Community Outreach Act. 
Sec. 852. Computerized database of commtinity development needs. 
Sec. 853. Community Investment Corporation demonstration. 
Sec. 854. Emergency assistance for Los Angeles. 
TITLE DC—REGULATORY AND MISCELLANEOUS PROGRAMS 
Subtitle A—Miscellaneous 
Sec. 901. HUD research and development. 
Sec. 902. Administration of Department of Housing and Urban Development. 
Sec. 903. Participant's consent to release of information. 
Sec. 904. National Institute of Building Sciences. 
Sec. 905. Fair housing initiatives program. 
Sec. 906. National Commission on Manufactured Housing. 
Sec. 907. Manufactured housing. 
Sec. 908. Real Estate Settlement Procedures Act of 1974. 
Sec. 909. Community Reinvestment Act of 1977. 
Sec. 910. Report on community development lending. 
Sec. 911. Subsidy layering review. 
Sec. 912. Solar assistance financing entity. 
Sec. 913. Technical and Conforming Amendments relating to labor wage rates 
under housing programs. 
Sec. 914. Energy efficient mortgages. 
Sec. 915. Economic opportunities for low- and very low-income persons. 
Sec. 916. Study of the effectiveness of section 3 of the Housing and Urban Develop-
ment Act of 1968. 
Sec. 917. Indian housing authorities. 
Sec. 918. Study regarding foreclosure alternatives. 
Sec. 919. Regulations clarifying the term "housing for older persons". 
Sec. 920. Use of domestic products. 
Sec. 921. Improved coordination of urban policy. 
Sec. 922. Prohibition of lump-sum payments. 
'" 
Sec. 923. Economic independence. 
Sec. 924. Administrative provision. 
Sec. 925. Performance goals. 
Sec. 926. Regulation of consultants. 
Sec. 927. Clarification on utility allowances. 
Sec. 928. Flood control restoration zone. 
Sec. 929. Salaries and expenses. 
Sec. 930. The National Cities in Schools Community Development program. 
Sec. 931. Bank Enterprise Act of 1991 and related provisions. 
Sec. 932. Disclosures under the Home Mortgage Disclosure Act of 1975. 
Sec. 933. Prohibition on use of "rule of 78's" in connection with mortgage 
refinancings and other consumer loans. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3677 
Subtitle B—Bank Regulatory Clarification Provisions 
Sec. 951. Amendment relating to estimates of real estate settlement costs. 
Sec. 952. A4justable rate mortgage caps. 
Sec. 953. Modifying separate capitalization rule for savings associations' subsidi-
aries engaged in activities not permissible for national banks. 
Sec. 954. Real estate appraisal amendment. 
Sec. 955. Insider lending. 
Sec. 956. Clarification of compensation standards. 
Sec. 957. Truth in Savings Act amendments. 
TITLE X—RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT OF 
1992 
Sec. 1001. Short title. 
Sec. 1002. Findings. 
Sec. 1003. Purposes. 
Sec. 1004. Definitions. 
Subtitle A—Lead-Based Paint Hazard Reduction 
Sec. 1011. Grants for lead-based paint hazard reduction in target housing. 
Sec. 1012. Evaluation and reduction of lead-based paint hazards in federally as-
sisted housing. 
Sec. 1013. Disposition of federally owned housing. 
Sec. 1014. Comprehensive housing afifordability strategy. 
Sec. 1015. Task force on lead-based paint hazard reduction and financing. 
Sec. 1016. National consultation on lead-based paint hazard reduction. 
Sec. 1017. Guidelines for lead-based paint hazard evaluation and reduction activi-
ties. 
Sec. 1018. Disclosure of information concerning lead upon transfer of residential 
property. 
Subtitle B—Lead Exposure Reduction 
Sec. 1021. Contractor training and certification. 
Subtitle C—^Worker Protection 
Sec. 1031. Worker protection. 
Sec. 1032. Coordination between Environmental Protection Agency and Depart-
ment of Labor. 
Sec. 1033. NIOSH responsibilities. 
Subtitle D—Research and Development 
PART 1—HUD RESEARCH 
Sec. 1051. Research on lead exposure 
fit)m 
other sources. 
Sec. 1052. Testing technologies. 
Sec. 1063. Authorization. 
PART 2—GAO REPORT 
Sec. 1056. Federal implementation and insurance study. 
Subtitle E—Reports 
Sec. 1061. Reports of the Secretary of Hoiising and Urban Development. 
TITLE XI—NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY 
REUEF OF LOS ANGELES 
Sec. 1101. Authority. 
Sec. 1102. New town plan. 
Sec. 1103. New town development demonstration program requirements. 
Sec. 1104. Federal mortgage insurance. 
Sec. 1105. Secondary soft mortgage 
financing 
for housing. 
Sec. 1106. Community development assistance. 
Sec. 1107. Governing boards. 
Sec. 1108. Reports. 
Sec. 1109. Definitions. 
TITLE XII—REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE 
HOUSING 
Sec. 1201. Short title. 
Sec. 1202. Purposes. 
106 STAT. 3678 
PUBLIC LAW 102-550—OCT. 28, 1992 
Sec. 1203. Definition of regulatory barriers to affordable housing. 
Sec. 1204. Grants for regulatory barrier removal strategies and implementation. 
Sec. 1205. Regulatory barriers clearinghouse. 
Sec. 1206. Substantially equivalent Federal and State barrier assessment removal 
requirements. 
Sec. 1207. Reports by Secretary. 
TITLE XIII—GOVERNMENT SPONSORED ENTERPRISES 
Sec. 1301. Short title. 
Sec. 1302. Congressional findings. 
Sec. 1303. Definitions. 
Sec. 1304. Protection of taxpayers against liability. 
Subtitle A—Supervision and Regulation of Enterprises 
PART 1—FINANCIAL SAFETY AND SOUNDNESS REGULATOR 
Sec. 1311. Establishment of Office of Federal Housing Enterprise Oversight. 
Sec. 1312. Director. 
Sec. 1313. Duty and authority of director. 
Sec. 1314. Authority to require reports by enterprises. 
Sec. 1315. Personnel. 
Sec. 1316. Funding. 
Sec. 1317. Examinations. 
Sec. 1318. Prohibition of excessive compensation. 
Sec. 1319. Authority to provide for review of enterprises by rating organization. 
Sec. 1319A. Equal opportunity in solicitation of contracts. 
Sec. 1319B. Annual reports by director. 
Sec. 1319C. Public disclosure of final orders and agreements. 
Sec. 1319D. Limitation on subsequent employment. 
Sec. 1319E. Audits by GAO. 
Sec. 1319F. Information, records, and meetings. 
Sec. 1319G. Regulations and orders. 
PART 2—AUTHORITY OF SECRETARY 
SUBPART A—GENERAL AUTHORITY 
Sec. 1321. Regulatory authority. 
Sec. 1322. Prior approval authority for new programs. 
Sec. 1323. Public access to mortgage information. 
Sec. 1324. Annual housing report. 
Sec. 1325. Fair housing. 
Sec. 1326. Prohibition of public disclosure of proprietary information. 
Sec. 1327. Authority to require reports by enterprises. 
Sec. 1328. Reports by Secretary. 
SUBPART B—HOUSING GOALS 
Sec. 1331. Establishment. 
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Sec. 1332. Low- and moderate-income housing goal. 
Sec. 1333. Special affordable housing goal. 
Sec. 1334. Central cities, rural areas, and other underserved areas housing goal. 
Sec. 1335. Other requirements. 
Sec. 1336. Monitoring and enforcing compliance with housing goals. 
Sec. 1337. Reports during transition. 
Sec. 1338. Effective date of transition goals. 
SUBPART C—ENFORCEMENT OF HOUSING GOALS 
Sec. 1341. Cease-and-desist proceedings. 
Sec. 1342. Hearings. 
Sec. 1343. Judicial review. 
Sec. 1344. Enforcement and jurisdiction. 
.. ,. 
Sec. 1345. Civil money penalties. 
Sec. 1346. Public disclosure of final orders and agreements. 
Sec. 1347. Notice of service. 
Sec. 1348. Subpoena authority. 
Sec. 1349. Regulations. 
PART 3—MISCELLANEOUS PROVISIONS 
Sec. 1351. Amendments to title 5, United States Code. 
Sec. 1352. Prohibition of merger of office. 
Sec. 1353. Protection of confidential information. 
Sec. 1354. Review of underwriting guidelines. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3679 
Sec. 1355. Studies ofeffectsofprivatization of FNMA and FHLMC. 
Sec. 1356. Transition. 
Subtitle B—Required Capital Levels for Enterprises and Special Enforcement 
Powers 
Sec. 1361. Risk-based capital levels. 
Sec. 1362. Minimum capital levels. 
Sec. 1363. Critical capital levels. 
Sec. 1364. Capital classifications. 
Sec. 1365. Supervisory actions applicable to undercapitalized enterprises. 
Sec. 1366. Supervisory actions applicable to significantly undercapitalized enter-
prises. 
Sec. 1367. Appointment of conservators for critically undercapitalized enterprises. 
Sec. 1368. Notice of classification and enforcement action. 
Sec. 1369. Appointment of conservators. 
Sec. 1369A. Powers of conservators. 
Sec. 1369B. Liability protection for conservators. 
Sec. 1369C. Capital restoration plans. 
Sec. 1369D. Judicial review of director action. 
Subtitle C—Enforcement Provisions 
Sec. 1371. Cease-suid-desist proceedings. 
Sec. 1372. Temporary cease-and-desist orders. 
Sec. 1373. Hearings. 
Sec. 1374. Judicial review. 
Sec. 1375. Enforcement and jurisdiction. 
Sec. 1376. Civil money penalties. 
Sec. 1377. Notice after separation from service. 
Sec. 1378. Private rights of action. 
Sec. 1379. Public disclosure of final orders and agreements. 
Sec. 1379A. Notice of service. 
Sec. 1379B. Subpoena authority. 
Subtitle D—^Amendments to Charter Acts of Enterprises 
Sec. 1381. Amendments to Federal National Mortgage Association Charter Act. 
Sec. 1382. Amendments to Federal Home Loan Mortage Corporation Act. 
Sec. 1383. Implementation. 
Subtitle E—Regulation of Federal Home Loan Bank System 
Sec. 1391. Primacy of financial safety and soundness for Federal Housing Finance 
Board. 
Sec. 1392. Advances under Federal Home Loan Bank Act. 
Sec. 1393. Studies regarding Federal Home Loan Bank system. 
Sec. 1394. Report of Federal Home Loan Bank members. 
Sec. 1395. Reports regarding consolidation of Federal Home Loan Bank system. 
TITLE XIV—HOUSING PROGRAMS UNDER STEWART B. MCKINNEY 
HOMELESS ASSISTANCE ACT 
Subtitle A—^Housing Assistance 
Sec. 1401. Short title. 
Sec. 1402. Emergency Shelter Grants program. 
Sec. 1403. Supportive Housing program. 
Sec. 1404. Safe Havens for Homeless Individuals Demonstration program. 
Sec. 1405. Section 8 assistance for single room occupancy dwellings. 
Sec. 1406. Shelter Plus Care program. 
Sec. 1407. FHA single family property disposition. 
Sec. 1408. Rural Homelessness Grant program. 
Sec. 1409. Evaluation of prc^prams. 
Sec. 1410. Extension of original McKinney Act Housing programs. 
Sec. 1411. Consultation and report regarding use of National Guard facilities as 
overnight shelters for homeless individuals. 
Sec. 1412. Strategy to eliminate unfit transient facilities. 
Sec. 1413. Amendments to table of contents. 
Sec. 1414. Use of FMHA inventory for transitional housing for homeless persons 
and for turnkey housing. 
Subtitle B—^Interagency Council on the Homeless 
Sec. 1421. Authorization of appropriations. 
Sec. 1422. Extension. 
!()(> STAT. 3680 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle C—^Federal Emergency Management Food and Shelter Program 
Sec. 1431. Authorization of appropriations. 
Sec. 1432. Employment and participation of homeless individuals in local programs. 
TITLE XV—ANNUNZIO-WYLIE ANTI-MONEY LAUNDERING ACT 
Sec. 1500. Short title. 
Subtitle A—^Termination of Charters, Insurance, and Offices 
Sec. 1501. Authority to appoint conservator for depository institutions convicted of 
money laundering. 
Sec. 1502. Revoking charter of Federal depository institutions convicted of money 
laundering or cash transaction reporting offenses. 
Sec. 1503. Terminating insurance of State depository institutions convicted of 
money laundering or cash transaction reporting offenses. 
Sec. 1504. Removing parties involved in currency reporting violations. 
Sec. 1505. Unauthorized participation. 
Sec. 1506. Access by State financial institution supervisors to currency transactions 
reports. 
Sec. 1507. Restricting State branches and agencies of foreign banks convicted of 
money laundering offenses. 
Subtitle B—Nonbank Financial Institutions and General Provisions 
Sec. 1511. Identification of financial institutions. 
Sec. 1512. Prohibition of illegal money transmitting businesses. 
Sec. 1513. Compliance procedures. 
Sec. 1514. Nondisclosure of orders. 
Sec. 1515. Provisions relating to recordkeeping with respect to certain funds trans-
fers. 
Sec. 1516. Use of certain records. 
Sec. 1517. Suspicious transactions and financial institution anti-money laundering 
programs. 
Sec. 1518. Anti-money laundering training team. 
Sec. 1519. International money laundering reports. 
Subtitle C—^Money Laundering Enforcement Improvements 
Sec. 1521. Jurisdiction in civil forfeiture cases. 
Sec. 1522. Civil forfeiture of fungible property. 
t 
Sec. 1523. Procedure for subpoenaing bank records. 
Sec. 1524. Deletion of redundant and inadvertently limiting provision in 18 
U.S.C. 1956. 
Sec. 1525. Structuring transactions to evade CMIR requirement. 
Sec. 1526. Clarification of definition of financial institution. 
Sec. 1527. Definition of financial transaction. 
Sec. 1528. Obstructing a money laundering investigation. 
Sec. 1529. Awards in money laundering cases. 
Sec. 1530. Penalty for money laundering conspiracies. 
Sec. 1531. Technical and conforming amendments to money laundering provision. 
Sec. 1532. Preclusion of notice to possible suspects of existence of a grand jury sub-
poena for bank records in money laundering and controlled substance 
investigations. 
Sec. 1533. Elimination of restriction on disposal of forfeited property by the Depart-
ment of the Treasury and the Postal Service. 
Sec. 1534. New money laundering predicate offenses. 
Sec. 1535. Amendments to the Banx Secrecy Act. 
Sec. 1536. Expansion of money laundering law to cover proceeds of certain foreign 
crimes. 
Subtitle D—Reports and Miscellaneous 
Sec. 1541. Study and report on reimbursing financial institutions and others for 
providing financial records. 
Sec. 1542. Reports of information regarding safety and soundness of depository 
institutions. 
Sec. 1543. Immunity. 
Sec. 1544. Interagency information sharing. 
Subtitle E—Counterfeit Deterrence 
Sec. 1551. Short title. 
Sec. 1552. Increase in penalties. 
Sec. 1553. Deterrents to counterfeiting. 
Sec. 1554. Reproductions of currency. 
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PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3681 
Subtitle F—^Miscellaneous Provisions 
Sec. 1561. Civil monev penalties. 
Sec. 1562. Authority to order depository institutions to obtain copies of CTRS from 
customers which are unregulated businesses. 
Sec. 1563. Whistleblower protection for employees of financial institutions other 
than depository institutions. 
Sec. 1564. Advisory eroup on reporting requirements. 
Sec. 1565. GAO feasibility study of the financial crimes enforcement network. 
TITLE XVI—TECHNICAL CORRECTIONS OF BANKING LAWS 
Subtitle A—^Federal Deposit Insurance Corporation Improvement Act 
Sec. 1601. Table of contents. 
Sec. 1602. Transfer and redesignation of sections with duplicate section nimibers. 
Sec. 1603. Technical corrections relating to title I of the Federal Deposit Insurance 
Corporation Improvement Act of 1991. 
Sec. 1604. Technical corrections relating to title II of the Federal Deposit Insurance 
Corporation Improvement Act of 1991. 
Sec. 1605. Technical corrections relating to tiUe III of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991. 
Sec. 1606. Technical corrections relating to title IV of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991. 
Sec. 1607. Technical corrections relating to title V of the Federal Deposit Insurance 
Corporation Improvement Act of 1991. 
Sec. 1608. Federal Housing Finance Board practice required to conform to congres-
sional intent and existing law. 
Sec. 1609. Effective date. 
Subtitle B—^Resolution Trust Corporation 
Sec. 1611. Technical corrections relating to title I of the Resolution Trust Corpora-
tion Refinancing, Restructuring, and Improvement Act of 1991. 
Sec. 1612. Technical corrections relating to title II or the Resolution Trust Corpora-
tion Refinancing, Restructuring, and Improvement Act of 1991. 
Sec. 1613. Technical corrections relating to title III of the Resolution Trust 
Corporation Refinancing, Restructuring, and Imwovement Act of 1991. 
Sec. 1614. Techiucal corrections relating to title IV of the Resolution Trust Cor-
poration Refinancing, Restructuring, and Improvement Act of 1991. 
Sec. 1615. Technical corrections relating to title V of the Resolution iSiist Corpora-
tion Refinancing, Restructuring, and Improvement Act of 1991. 
Sec. 1616. Technical corrections relating to title VT of the Resolution Trust Cor-
poration Refinancii^, Restmcturing, and Improvement Act of 1991. 
Sec. 1617. R^eal of title consisting of amendments aupUcated in the Federal 
Deposit Insurance Corporation Improvement Act of 1991. 
Sec. 1618. Effective date. 
SEC. 2. EFFECTIVE DATE. 
42 USC 5301 
The provisions of this Act and the amendments made by this 
Act shall take effect and shall apply upon the date of the enactment 
of this Act, unless such provisions or amendments specifically pro-
vide for effectiveness or applicabiUty upon another date certain. 
TITLE I—HOUSING ASSISTANCE 
Subtitle A—General Provisions 
SEC. 101. LOW-INCOME HOUSING AUTHORIZATION. 
(a) AGGREGATE BUDGET AUTHORITY.—Section 5(cX6) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(cX6)) is 
amended by adding at the end the following new sentence: 'The 
ag^egate amount of budget authority that may be obligated for 
assistance referred to in paragraph (7) is increased (to tiie extent 
approved in appropriation Acts) by $14,710,990,520 on October 
1,1992, and by $15,328,852,122 on October 1993.". 
(b) UTILIZATION OF BUDGET AuTHORiry.—Section 5(cX7) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(cX7)) is 
106 STAT. 3682 
PUBLIC LAW 102-550—OCT. 28, 1992 
amended by striking the paragraph designation and all that follows 
through the end of subparagraph (B) and inserting the following: 
"(TXA) Using the additioncQ budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1993, the Secretarv shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating— 
"(i) for public housing grants under subsection (aX2), not 
more than $830,900,800, of which amount not more than 
$257,320,000 shall be available for Indian housing; 
"(ii) for assistance under section 8, not more than 
$1,977,662,720, of which $20,000,000 shall be available for 15-
year contracts for project-based assistance to be used for a 
multicultural tenant empowerment and homeownership project 
located in the District of Columbia, except that assistance pro-
vided for such project shall not be considered for purposes 
of the percentage limitations under section 8(iX2); except that 
not more than 49 percent of any amounts appropriated under 
this clause may be used for vouchers under section 8(o); 
"(iii) for comprehensive improvement assistance grants 
imder section 14(k), not more than $3,100,000,000; 
"(iv) for assistance imder section 8 for property disposition, 
not more than $93,032,000; 
"(v) for assistance imder section 8 for loan management, 
not more than $202,000,000; 
''(vi) for extensions of contracts expiring under section 8, 
not more than $6,746,135,000, which shall be for 5-year con-
tracts for assistance under section 8 and for loan management 
assistance under such section; 
"(vii) for amendments to contracts under section 8, not 
more than $1,350,000,000; 
"(viii) for public housing lease adjustments and amend-
ments, not more than $83,055,000; 
"(ix) for conversions firom leased hoiising contracts under 
section 23 of this Act (as in effect immecQately before the 
enactment of the Housing and Community Development Act 
of 1974) to assistance under section 8, not more than 
$12,767,000; and 
"(x) for grants under section 24 for revitalization of severely 
distressed public housing, not more than $300,000,000. 
"(B) Using the additional budget authority provided under para-
graph (6) and the balances of budget authority that become avail-
able during fiscal year 1994, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating— 
"(i) for public housing grants under subsection (aX2), not 
more than $865,798,634, of which amount not more than 
$268,127,440 shall be available for Indian housing; 
"(ii) for assistance imder section 8, not more than 
$2,060,724,554, of which $20,000,000 shall be available for 15-
year contracts for project-based assistance to be used for a 
multicultural tenant empowerment and homeownership project 
located in the District or Columbia, except that assistance pro-
vided for such project shall not be considered for purposes 
of the percentage limitations under section 8(iX2); except that 
not more than 49 percent of any amounts appropriated under 
tliis clause may be used for vouchers under section 8(6); 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3683 
"(iii) for comprehensive improvement assistance grants 
imder section 14(k), not more than $3,230,200,000; 
''(iv) for assistance under section 8 for property disposition, 
not more than $96,939,344; 
"(v) for assistance imder section 8 for loan management, 
not more than $210,484,000; 
"(vi) for extensions of contracts expiring imder section 8, 
not more than $7,029,472,670, which snail he for 5-year con-
tracts for assistance wider section 8 and for loan management 
assistance under such Election; 
"(vii) for amendments to contracts imder section 8, not 
more than $1,406,700,000; 
"(viii) for public housing lease a4justments and amend-
ments, not more than $86,543,310; 
"(ix) for conversions from leased housing contracts under 
section 23 of this Act (as in effect immediately before the 
enactment of the Housing and Community Development Act 
of 1974) to assistance under section 8, not more than 
$13,303,214; and 
"(x) for grants under section 24 for revitalization of severely 
distressed public housing, not more than $312,600,000.". 
SEC. 102. EXTENSION OF CEILING RENTS. 
(a) REMOVAL OF 5-YEAR LIMIT.—Section 3(aX2XA) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(aX2XA)) is amended 
by striking "for not more than a 5-year period". 
(b) EXTENSION OF PREVIOUS CEILING RENTS.—Section 3(aX2XB) 
of the United States Housing Act of 1937 (42 U.S.C. 1437a(aX2XB)) 
is amended— 
(1) by striking the first sentence; and 
(2) in the last sentence, by striking "for the 5-year period 
beginning on such date of enactment" and inserting "without 
time limitation". 
SEC. 103. DEFINITIONS OF INCOME AND ADJUSTED INCOME AND 
APPUCABIUTYIX) INDIAN HOUSING PROGRAMS. 
(a) IN GENERAL.— 
(1) INCOME.—Section 3(bX4) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(bX4)) is amended bv inserting 
after "familv" the following: "and any amounts which would 
be eligible for exclusion under section 1613(aX7) of the Social 
Security Act (42 U.S.C. 1382b(aX7))". 
(2) ADJUSTED INCOME.—Section 3(bX5) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(bX5)) is amended— 
(A) by striking subparagraph (D) and inserting the 
following new subparagraph: 
"(D) child care expenses to the extent necessary to 
enable another member of the family to be employed or 
to further his or he r education;"; 
(B) by striking "and" at the end of subparagraph (E); 
(C) by striking the period at the end of^ subparagraph 
(F) and inserting "; and"; and 
(D) by inserting after subparagraph (F) the following 
new subparagraph: 
"(G) excessive travel expenses, not to exceed $25 per 
family per week, for empro3rment- or education-related 
travel, except that this subparagraph shall apply only to 
families assisted by Indian housing authorities. . 
106 STAT. 3684 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 1437a 
note. 
42 use 1437aa 
note. 
Regulations. 
42 use 1437d 
note. 
(3) BUDGET COMPLIANCE.—TO the extent that the amend-
ments made by paragraphs (1) and (2) result in additional 
costs under this title, sucn amendments shall be effective only 
to the extent that amoimts to cover such additional costs are 
provided in advance in appropriation Acts, 
(b) APPUCABILITY OF DEFINITIONS TO INDIAN HOUSING.— 
(1) IN GENERAL.—In accordance with section 201(bX2) of 
the United States Housing Act of 1937 (42 U.S.C. 1437aa(bX2)), 
the provisions of sections 572, 573, and 574 of the Cranston-
Gonzalez National Affordable Housing Act shall apply to public 
housing developed or oi)erated pursuant to a contract between 
the S^etary of Housing and Urban Development and an 
Indi£Ui Housing Authority. 
(2) EFFECTIVE DATE.—^Paragraph (1) shall take effect as 
if such provision were enacted upon the date of the enactment 
of the Cranston-Gonzalez National Affordable Housing Act. 
SEC. 104. PUBUC AND SECTION 8 HOUSING TENANT PREFERENCE 
RULES. 
Not later than the expiration of the 180-day period beginning 
on the date of the enactment of this Act, the Secretary of Housing 
and Urban Development shall issue regulations implementing the 
amendments made by sections 501 and 545 of the Cranston-Gon-
zalez National Affordable Housing Act. The regulations shall be 
issued after notice and opportunity for public comment pursuant 
to the provisions of section 553 of title 5, United States Code 
(notwithstanding subsections (aX2), (bXB), and (dX3) of such sec-
tion) and shall t£^e effect upon issuance. 
SEC. 105. INCOME EUGIBILITY FOR ASSISTED HOUSING. 
(a) EXEMPTION FROM WAITING LIST REQUIREMENTS.—Section 
16(c) of the United States Housing Act of 1937 (42 U.S.C. 1437n(c)) 
is amended— 
(1) in the first sentence, by striking the second comma 
and inserting "and"; 
(2) in the first sentence, by striking ", and shall" and 
inserting ". In developing such admission procedures, the Sec-
retary shall"; and 
(3) by inserting before the period at the end of the penul-
timate sentence the following: ; except that such prohibition 
shall not apply with respect to families selected for occupancy 
in public housing imder the system of preferences established 
by the agency pursuant to section 6(cX4XAXii)"-
(b) 
EXEMPTION 
FROM 
EUGIBIUTY 
RESTRICTIONS.—Section 
16(dX2) of the United States Housing Act of 1937 (42 U.S.C. 
1437n(dX2)) is amended by inserting before the period ", to scattered 
site public housing dwelling units sold or intended to be sold to 
public housing tenants under section 5(h) of this title.". 
SEC. 106. FAMILY SELF-SUFFICIENCY PROGRAM. 
(a) RESERVATION OF OPERATING SUBSIDIES.—The last sentence 
of section 23(hX2) of the United States Housing Act of 1937 (42 
U.S.C. 1437u(hX2)) is amended to read as follows: ''Of any amounts 
appropriated luider section 9(c) for fiscal year 1993, $25,000,000 
is authorized to be used for costs under this paragraph, and of 
any amounts appropriated under such section for fiscal year 1994, 
$25,900,000 is authorized to be used for costs under this para-
graph.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3685 
(b) EXCEPTION TO REQUIRED ESTABLISHMENT OF PROGRAM.— 
Section 23(bX2) of the United States Housing Act of 1937 (42 
U.S.C. 1437u(bX2)) is amended by striking subparagraphs (A) 
through (D) and inserting the following: 
"(A) lack of supportive services accessible to eligible 
families, which shall include insufficient availability of 
resources for programs imder the Job Training Partner-
ships Act or the Job Opportunities and Basic Slalls Train-
ing Program under part F of title IV of the Social Security 
Act; 
"(B) lack of funding for reasonable administrative costs; 
"(C) lack of cooperation by other units of State or 
local government; or 
"(D) any other circumstances that the Secretary may 
consider appropriate. 
In allocating assistance available for reservation under this 
Act, the Secretary may not refuse to provide assistance or 
decrease the amount of assistance that would otherwise be 
provided to any public housing agency because the agency 
has provided a certification under this paragraph or because, 
pursuant to a certification, the agency has railed to carry out 
a self-sufficiency progi-am.". 
(c) NONPARTICIPATION.—Section 23(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437u(b)) is amended by adding 
at the end the following new paragraph: 
"(4) NONPARTICIPATION.—^Assistance under the certificate 
or voucher programs under section 8 for a family that elects 
not to participate in a local program shall not be delayed 
by reason of such election.". 
(d) CONTRACT OF PARTICIPATION.—Section 23(cXl) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(cXl)) is amended— 
(1) in the second sentence, by inserting after "program" 
the following: ", shall establish specific interim and final goals 
by which compliance with and performance of the contract 
may be measured,"; and 
(2) by striking the last sentence and inserting the following 
new sentences: ^ h e contract shall provide that the public 
housing agency may terminate or withhold assistance under 
section 8 and services under paragraph (2) of this subsection 
if the public housing agency determines, through an administra-
tive grievance procedure in accordance with the requirements 
of section 6(k), that the family has failed to comply with the 
requirements of the contract without good cause (which may 
include a loss or reduction in access to supportive services, 
or a change in circumstances that makes the family or individ-
ual unsuitable for participation).". 
(e) SUPPORTIVE SERVICES.—^The first sentence of section 23(cX2) 
of the United States Housing Act of 1937 (42 U.S.C. 1437u(cX2)) 
is amended by striking "to each participating family" the second 
place it appears. 
(f) ESCROW SAVINGS ACCOUNTS.—Section 23(dX2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(dX2)) is amended 
in the last sentence by striking "only after" and all that follows 
through the end of the sentence and inserting the following: "after 
the family ceases to receive income assistance under Federal or 
State welfare programs, upon successful performance of the obliga-
tions of the family imder the contract of participation entered 
106 STAT. 3686 
PUBLIC LAW 102-550—OCT. 28, 1992 
into by the family under subsection (c), as determined according 
to the specific goals and terms included in the contract, and under 
other circumstances in which the Secretary determines an exception 
for good cause is warranted. A public housing agency establishing 
such escrow accounts may make certain amounts in the accounts 
available to the participating families before full performance of 
the contract obligations based on compliance with, and completion 
of, specific interim goals included in the contract; except that any 
such amounts shall be used by the participating famihes for pur-
poses consistent with the contracts of participation, as determined 
by the public housing agency.". 
(g) INCENTIVES FOR PARTICIPATION.—Section 23(d) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended— 
(1) by striking the subsection designation and heading and 
inserting the following: 
"(d) INCENTIVES FOR PARTICIPATION.—"; and 
(2) by adding at the end the following new paragraph: 
"(3) PLAN.—Each public housing agency carrying out a 
local program under this section shall establish a plan to offer 
incentives to families to encourage families to participate in 
the program. The plan shall require the establishment of escrow 
savings accounts under paragraph (2) and may include any 
other incentives designed by the public housing agency.", 
(h) ACTION PLAN.—Section 23(gX3) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437u(gX3)) is amended— 
(1) in subparagraph (F), by striking "and" at the end; 
(2) in subparagraph (G), by striking the period at the 
end and inserting "; and"; 
(3) by redesignating subparagraphs (D) through (G) (as 
so amended) as subparagraphs (E) through (H), respectively; 
(4) by inserting after subparagraph (C) the following new 
subparagraph: 
"(D) a description of the incentives pursuant to sub-
section (d) offered by the public housing agency to families 
to encourage participation in the program;"; and 
(5) by adding at the end the following new paragraph: 
"(I) assurances satisfactory to the Secretary that 
nonparticipating families will retain their rights to public 
housing or section 8 assistance notwithstanding the provi-
sions of this section.", 
(i) DEFINITIONS.—Section 23(n) of the United States Housing 
Act of 1937 (42 U.S.C. 1437u(n)) is amended— 
(1) by redesignating paragraphs (3) and (4) as paragraphs 
(4) and (5), respectively; 
(2) by inserting after paragraph (2) the following new para-
graph: 
"(3) The term 'eligible family* means a family whose head 
of household is not elderly, disabled, pregnant, a primary 
caregiver for children under the age of 3, or for whom the 
family self-sufRciency program would otherwise be unsuitable. 
Notwithstanding the preceding sentence, a public housing 
agency may enroll such families if they choose to participate 
in the program."; and 
(3) by adding at the end the following new paragraph: 
"(6) The term Vacant unit' means a dwelling unit that 
has been vacant for not less than 9 consecutive months.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3687 
(j) I^fDIAN HOUSING.—Section 23(oX2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437u(oX2)) is amended to read 
as follows: 
"(2) APPLICABILITY TO INDIAN PUBLIC HOUSING AUTHORI-
TIES.—Notwithstanding any other provision of law, the provi-
sions of this section shall be optional for Indian housing 
authorities.". 
Subtitle B—Public and Indian Housing 
SEC. 
1
1
1
. 
MAJOR 
RECONSTRUCTION 
OF 
OBSOLETE 
PROJECTS. 
(a) IN GENERAL.—Section 5(jX2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437c(jX2)) is amended to read as follows: 
"(2)(A) Notwithstanding any other provision of law, the Sec-
retary may reserve not more than 20 percent of any amounts 
appropriated for development of public housing in each fiscal year 
for the substantial redesign, reconstruction, or redevelopment of 
existing obsolete public housing projects or buildings and for the 
costs of improving the management and operation of projects under-
going redesign, reconstruction, or redevelopment under this para-
graph (to the extent that such improvement is necessary to maintain 
the physical improvements resulting from such redesign, reconstruc-
tion, or redevelopment). 
"(B) For purposes of this paragraph, the term 'obsolete public 
housing project or building' means a public housing project or 
building (i) having design or marketability problems resulting in 
vacancy in more than 25 percent of the units, or (iiXD for which 
the costs for redesign, reconstruction, or redevelopment (including 
any costs for lead-based paint abatement activities) exceed 70 per-
cent of the total development cost limits for new construction of 
similar units in the area, and (II) which has an occupancy density 
or a building height that is significantly in excess of that which 
prevails in the neighborhood in which the project is located, a 
bedroom configuration that could be altered to better serve the 
needs of families seeking occupancy to dwellings of the public hous-
ing agency, significant security problems in and around the project, 
or significant physical deterioration or inefficient energy and utility 
systems. 
"(C) The Secretary shall allocate amounts reserved under this 
section to public housing agencies on the basis of a competition 
among public housing agencies applying for such amounts. The 
competition shall be based on— 
"(i) the management capability of the public housing agency 
to carry out the redesign, reconstruction, or redevelopment; 
"(ii) the expected term of the useful life of the project 
or building after redesign, reconstruction or redevelopment; 
and 
"(iii) the likelihood of achieving full occupancy within the 
projects or buildings of the agency that are to be assisted 
under this paragraph. 
"(D) The Secretary shall establish limitations on the total costs 
of any project or building receiving amounts under this paragraph 
for redesign, reconstruction, and redevelopment. The cost limita-
tions shall not be related to the total development cost system 
for new development or to the cost limits for modernization and 
shall recognize the higher direct costs of such work. 
106 STAT. 3688 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(E) Assistance may not be provided under this paragraph 
for any project or building assisted under section 14. 
"(FXi) For each fiscal year for which amounts are reserved 
or appropriated for the purposes of this paragraph, the Secretary 
shall establish performance goals to evaluate the effectiveness of 
the use of such amounts. The goals shall— 
''(I) be designed to maximize the effectiveness of the 
expenditures in a quantifiable manner; and 
"(II) describe the number of imits to be redesigned, redevel-
oped, and reconstructed with such amounts and improvements 
in the management of projects so assisted to be accomplished 
with such amounts. 
Reports. 
"(ii) Not later than 60 days after the end of each such fiscal 
year, the Secretary shall submit a report to the Congress, which 
shall describe the performance goals established for the fiscal year, 
the activities carried out with such amounts, and a statement 
of whether the performance goals were met. If the performance 
goals were not met, the report shall contain— 
"(I) an explanation of why the goals were not met and 
a description of any managerial deficiencies or legal problems 
that contributed to not meeting such goals; 
"(II) plans and a schedule for achieving the level of perform-
ance under such performance goals; 
"(III) recommendations for legislative or regulatory changes 
necessary to achieve the performsmce goals or improve perform-
ance; and 
"(IV) a statement of whether the performance goals estab-
lished for the fiscal year were impractical or infeasible, and, 
if so, the factors that contributed and resulted in establishing 
such impractical or infeasible goals and recommendations of 
actions to meet such goals, which may include changing the 
goals or altering or eliminating the program under this para-
graph for major reconstruction of projects.", 
(b) MODERNIZATION AND DISPOSITION REQUIREMENTS.— 
(1) MODERNIZATION.—Section 14(c) of the United States 
42 use 1437/. 
Housmg Act of 1937 (42 U.S.C. 14371(c)) is amended— 
(A) in the matter preceding paragraph (1)— 
(i) by inserting "buildings of after "for"; and 
(ii) by striking "which"; 
(B) in each of paragraphs (1), (2), (3), and (4), by 
inserting "which projects" after the paragraph designation; 
(C) in paragraph (3), by striking "and" at the end; 
(D) by redesignating paragraph (4) as paragraph (5); 
and 
(E) by inserting after paragraph (3) the following new 
paragraph: 
"(4) which buildings are not assisted under section 5(jX2); 
and". 
(2) DEMOLITION AND DISPOSITION.—Section 18(a) 
of 
the 
United States Housing Act of 1937 (42 U.S.C. 1437q(a)) is 
42 use I437p. 
amended— 
(A) in paragraph (1), by striking "or" at the end; 
(B) in paragraph (2), by striking the period at the 
end and inserting "; or"; and 
(C) by adding at the end the following new paragraph: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3689 
"(3) in the case of an application proposing demolition 
or disposition of any portion of a public housing project, assisted 
at any time under section 5(jX2)— 
"(A) such assistance has not been provided for the 
portion of the proiect to be demolished or disposed within 
the 10-year perioa ending upon submission of the applica-
tion; or 
''(B) the property's retention is not in the best interest 
of the tenant£i or the public housing agency because of 
extraordinary changes in the area surrounding the project 
or other extraordinanr circiunstances of the project.". 
(c) REGULATIONS.—^The Secretary shall issue regulations nec-
essary to carry out the amendments made by this section as pro-
vided under section 191 of this Act. 
SEC. 112. PUBUC HOUSING TENANT PREFERENCES. 
Section 6(cX4XAXi) of the United States Housing Act of 1937 
(42 U.S.C. 1437d(cX4XAXi)) is amended by striking "70 percent" 
and inserting "50 percent". 
SEC. 113. REFORM OF PUBUC HOUSING MANAGEMENT. 
(a) INDEPENDENT :MANAGEMENT ASSESSMENT.—Section 6(iX2) 
of the United States Housing Act of 1937 (42 U.S.C. 1437d(jX2)) 
is amended— 
(1) by redesignating subparagraph (B) as subparagraph 
(C); 
(2) by inserting after subparagraph (A) the following new 
subparagraph: 
"(BXi) Upon designating a public housing agency as troubled 
pursuant to subparagraph (A) and determining that an assessment 
under this subparagraph will not duplicate any review conducted 
under section 14(p), tne Secretary shall provide for an on-site, 
independent assessment of the management of the agency. 
"(ii) To the extent the Secretary deems appropriate (taking 
into accoimt an agenc^s performance under the mdicators specified 
under paragraph (1)), the assessment team shall also consider issues 
relating to the agenc3r's resident population and physical inventory, 
including the extent to which (I) the agency's comprehensive plan 
prepared pursuant to section 14 adequately and appropriately 
addresses the rehabilitation needs of the agencjr's inventory, (II) 
residents of the agency are involved in and informed of significant 
management decisions, and (III) any projects in the agency s inven-
tory are severely distressed and eligible for assistance pursuant 
to section 24. 
"(iii) An independent assessment under this subparagraph shall 
be carried out by a team of knowledgeable individuals selected 
by the Secretary (referred to in this section as the 'assessment 
team') with expertise in public housing and real estate management. 
In conducting an assessment, the assessment team shall consult 
with the residents and with public and private entities in the 
jurisdiction in which the public housing is located. The assessment 
Repots. 
team shall provide to the Secretary and the public housing agency 
a written report, which shall contain, at a minimum, recommenda-
tions for such management improvements as are necessary to elimi-
nate or substantially remedy existing deficiencies."; and 
(3) in subparagraph (C), as so redesignated by paragraph 
( 1 ) -
106 STAT. 3690 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) by striking "agency setting forth" and inserting 
the following: "agency, after reviewing the report submitted 
pursuant to subparagraph (B) and consulting with the 
agency's assessment team. Such agreement shall set forth"; 
and 
(B) bv inserting before the second sentence the follow-
ing new flush sentence: 
"To the extent the Secretary deems appropriate (taking into account 
an agency's performance under the indicators specified under para-
graph (1)), such agreement shall also set forth a plan for enhancing 
resident involvement in the management of the public housing 
agency.". 
(b) ADDITIONAL STATUTORY REMEDIES.—Section 6(jX3XA) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(jX3XA)) is 
amended— 
(1) in clause (i), by inserting after "agents" the first place 
it appears the following: "(which may be selected by existing 
tenants through administrative procedures established by the 
Secretary)"; 
(2) at the end of clause (ii), by striking "and"; 
(3) by redesignating clause (iii) as clause (iv); 
(4) by inserting after clause (ii) the following new clause: 
"(iii) solicit competitive proposals from other public housing 
agencies and private entities with experience in construction 
management in the eventuality that such agencies or firms 
may be needed to oversee implementation of assistance made 
available under section 14 for the housing; and"; and 
(5) by adding at the end the following new flush sentence: 
"Residents of a public housing agency designated as troubled pursu-
ant to paragraph (2XA) may petition the Secretary in writing to 
take 1 or more of the actions referred to in this subparagraph. 
The Secretary shall respond to such petitions in a timely manner 
with a written description of the actions, if any, the Secretary 
plans to take and, where applicable, the reasons why such actions 
differ from the course proposed by the residents.". 
(c) RESOURCES.—Section 6(jX3) of the United States Housing 
Act of 1937 (42 U.S.C. 1437d(jX3)) is amended— 
(1) by redesignating subparagraphs (B) and (C) as subpara-
graphs (C) and (D), respectively; and 
(2) by inserting auer subparagraph (A) the following new 
subparagraph: 
"(B) The Secretary may make available to receivers and other 
entities selected or appointed pursuant to this paragraph such 
assistance as is necessary to remedy the substantial deterioration 
of living conditions in individual public housing developments or 
other related emergencies that endanger the health, safety and 
welfare of the residents.". 
(d) ANNUAL REPORTS.—Section 6(jX5XE) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(jX4XE)), as so redesignated 
by subsection (dXD, is amended by inserting before the semicolon 
the following: ", including an accounting of the authorized funds 
that have been expended to support such actions". 
(e) APPLICABILITY.— 
(1) 
ASSESSMENT OF RESIDENT MANAGEMENT CORPORA-
TIONS.—Section 6(jXl) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(jXl)) is amended— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3691 
(A) in the first sentence, by inserting "and resident 
man^ement corporations" before the period; 
(B) in the third sentence, by inserting "and resident 
management corporations" after "agencies"; and 
(C) in the fourth sentence, by striking "indicators." 
and inserting "indicators for pubhc housing agencies, to 
the extent practicable:". 
(2) PROCEDURES.—Section 6(jX2) of the United States Hous-
ing Act of 1937, as amended by subsection (a) of this section, 
is further amended by adding at the end the following new 
subparagraph: 
"(D) The Secretary shall apply the provisions of this 
paragraph to resident management corporations as well 
as public housing agencies.". 
SEC. 114. PUBUC HOUSING OPERATING SUBSIDIES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 9(c) of 
the 
United States Housing Act of 1937 (42 U.S.C. 1437g(c)) is amended 
to read as follows: 
"(cXD There are authorized to be appropriated for purposes 
of providing annual contributions under this section $2,282,436,000 
for fiscal year 1993 and $2,378,298,312 for fiscal year 1994. 
"(2) There are also authorized to be appropriated to provide 
annual contributions under this section, in addition to amounts 
under paragraph (1), such stuns as may be necessary for each 
of fiscal years 1993 and 1994, to provide each public housing agency 
with the difference between (A) the amount provided to the agency 
from amounts appropriated pursuant to paragraph (1), and (B) 
all funds for which the agency is eligible under the performance 
funding system without ac^ustments for estimated or unrealized 
savings. 
"(3) In addition to amounts under paragraphs (1) and (2), 
there are authorized to be appropriated for annual contributions 
under this section to provide for the costs of the adjustments to 
income and adjusted income under the amendments made by sec-
tions 573(b) and (c) of the Cranston-Gonzalez National Affordable 
Housing Act such sums as may be necessary for fiscal years 1993 
and 1994.". 
(b) ADJUSTMENT OF PERFORMANCE FUNDING SYSTEM.—Section 
9(aX3XA) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(aX3XA)) is amended by inserting after the period at the 
end the following new sentence: "Notwithstanding sections 583(a) 
and 585(a) of title 5, United States Code (as added by section 
3(a) of the Negotiated Rulemaking Act of 1990), any proposed 
regulation providing for amendment, alteration, ac^ustment, or 
other change to the performance funding system relating to vacant 
public housing units shall be issued pursuant to a negotiated rule-
making procedure under subchapter IV of chapter 5 of such title 
(as added by section 3(a) of the Negotiated Rulemaking Act of 
1990), and tne Secretary shall establish a negotiated rulemaking 
committee for development of any such proposed regulations.". 
(c) ENERGY SAVINGS.—Section 9(aX3XBXi) of the United States 
Housing Act of 1937 is amended by inserting before the semicolon 
at the end the following: ", and in subsequent years, if the energy 
savings are cost-effective, the Secretary may continue the sharing 
arrangement with the public housing agency for a period not to 
exceed 6 years". 
106 STAT. 3692 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 116. PUBUC HOUSING VACANCY SEDUCTION. 
(a) FUNDING.—Section 14(pX5) of the United States Housing 
42 use 1437/. 
Act of 1937 (42 U.S.C. 14371(pX5)) is amended to read as foUows: 
"(SXA) Of any amounts available under this section in each 
of fiscal years 1993 and 1994 (after amounts are reserved pursuant 
to subsection (kXl)), an amount equal to 4 percent of such remaining 
fiinds shall be available in each such fiscal year for the purposes 
under subparagraph (B). 
"(B) Of such amounts available under subparagraph (A) in 
each such 
fiscal 
year— 
"(i) 20 percent shall be available only for canying out 
activities under section 6Q); and 
"(ii) 80 percent shall be available for carrying out this 
subsection.". 
(b) SCOPE OF PROGRAM.—Section 14(pXl) of the United States 
Housing Act of 1937 (42 U.S.C. 14371(pXl)) is amended— 
(1) by striking "or that" and inserting ", that"; and 
(2) by inserting afi«r "6(j)," the following: "or for which 
a receiver has been appointed pursuant to section 6(jX3),". 
(c) V
A
C
A
N
C
Y REDUCTION ASSISTANCE.—Section 14(pX4) of the 
United States Housing Act of 1937 (42 U.S.C. 14371(pX4)) is 
amended— 
(1) in subparagraph (B), by inserting before the semicolon 
the following: ", except that the Secretary may provide assist-
ance to a public housing agency designated as a troubled agency 
for the purposes under this subparagraph only if the Secretary 
determines that the agency is making substantial progress 
in remedying management deficiencies, if any, or that the 
agency has provided reasonable assurances that such progress 
will be made"; and 
(2) in subparagraph (C), by inserting before the semicolon 
the following: ", except that the Secretary may provide assist-
ance to a public housing agency designated as a troubled agency 
for the purposes under this subparagraph only if the Secretary 
determines that the agency is mcJdng substantial progress 
in remedying management deficiencies, if any, or that the 
agency has provided reasonable assiurances that such progress 
will be made". 
(d) AVAILABILITY OF ASSISTANCE.—Section 14(pX4) of the United 
States Housing Act of 1937 (42 U.S.C. 14371(pX4)) is amended 
by striking the first comma and all that follows through the second 
comma and inserting ", subject to the availability of amoimts imder 
paragraph (6),". 
(e) USE O
F AMOUNTS FOR ASSESSMENT TEAMS.—Section 14(pX3) 
of the United States Housing Act of 1937 (42 U.S.C. 14371(pX3)) 
is amended by adding at the end the following new subparagraph: 
"(D) The Secretary may use amoimts made available under 
paragraph (6) for any travel and administrative expenses of assess-
ment teams under this paragraph.". 
(f) 
ASSESSMENT TEAM.—^The second sentence of section 
14(pX3XA) of the United States Housing Act of 1937 (42 U.S.C. 
14371(pX3XA)) is amended— 
(1) by striking "and" afi;er "Development" and inserting 
a comma; and 
(2) by striking "who" and inserting "and officials of the 
public housing agency, all of whom". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3693 
(g) RESERVATION OF ANNUAL CONTRTOUTIONS FOR AcTivmES 
UNDER PLAN.—Section 14(p) of the United States Housing Act 
of 1937 (42 U.S.C. 14371(p)) is amended— 
(1) by redesignating paragraphs (3), (4), and (5) (as 
amended by the preceding provisions of this section) as para-
graphs (4), (5), and (6), respectively; and 
(2) l3y inserting after paragraph (2) the following new para-
graph: 
"(3XA) Upon the expiration of the 24-month period beginning 
upon the receipt of assistance under paragraph (5) by a public 
housing agency, the Secretaiv shall, after reviewing the progress 
made in complying with the plan, reserve from the annual contribu-
tion attributable to each unit vacant for the 24-month period an 
amount determined by the Secretary but not exceeding 80 percent 
of such contribution. The Secretary may not reserve any amounts 
under this subparagraph for any vacant dwelling unit that is vacant 
because of modernization, reconstruction, or leaa-based paint reduc-
tion activities. 
"(B) The Secretary shall deposit any amounts reserved under 
subparagraph (A) in a separate account established on behalf of 
the public Housing agency, and such amounts shall be available 
to the agency only for the purpose of carrying out activities in 
compliance with the vacancy reduction plan of the agency. 
"(C) If, after the expiration of the 24-month period beginning 
upon the reservation under subparagraph (A) oi amounts for a 
public housing agency, the Secretary determines that the agency 
nas not made significant progress to comply with the provisions 
of the vacancy reduction plan of the agency, the amount remaining 
in the account for the agency established under subparagraph (B) 
shall be recaptured by the Secretary.". 
(h) TECHNICAL CORRECTIONS.—Section 14(pX2) of the United 
States Housing Act of 1937 (42 U.S.C. 14371(pX2)) is amended— 
(1) in clause (D), by striking "modernization, reconstruc-
tion" and inserting "comprehensive modernization, msgor 
reconstruction"; and 
(2) in clause (E), by striking "the modernization" and insert-
ing "the comprehensive modernization". 
SEC. 116. PUBUC HOUSING DEMOLITION AND DISPOSITION. 
(a) COORDINATION WITH TENANTS.—Section 18(bXl) of the 
United States Housing Act of 1937 (42 U.S.C. 1437p(bXl)) is amend-
ed by inserting "of uie project or portion of the project covered 
by the application" after "tenant cooperative". 
(b) REPLACEMENT PLAN.—Section 18(bX3) of the United States 
Housing Act of 1937 (42 U.S.C. 1437p(bX3)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (ii), by inserting before the semicolon 
at the end the following: "to the extent available; or if 
such assistence is not available, in the case of an applica-
tion proposing demolition or (tisposition of 200 or more 
units, the use of available project-based assistance under 
section 8 having a term of not less than 5 years"; 
(B) in clause (iii), by inserting before the semicolon 
at the end the following: "to the extent available; or if 
such assistence is not available, in the case of an applica-
tion proposing demolition or (Usposition of 200 or more 
imite, the use of available project-based assistance under 
106 STAT. 3694 
PUBLIC LAW 102-550—OCT. 28, 1992 
other Federal programs having a term of not less than 
5 years"; and 
(C) in clause (v), by inserting before the semicolon 
the following: "to the extent available; or if such assistance 
is not avEiilable, in the case of an application proposing 
demolition or disposition of 200 or more units, the use 
of tenant-based assistance under section 8 (excluding 
vouchers under section 8(o)) having a term of not less 
than 5 years"; 
(2) in subparagraph (G), by striking the period at the 
end and inserting a semicolon; 
(3) by redesignating subparagraphs (B) through (G) as sub-
paragraphs (C) through (H), respectively; 
(4) by inserting after subparagraph (A) the following new 
subparagraph: 
"(B) in the case of an application proposing demolition 
or disposition of 200 or more units, shall provide that 
(notwithstanding the limitation imder section 8(dX2XA) on 
the amount of project-based assistance provided by an 
agency)— 
"(i) not less than 50 percent of such additional 
dwelling units shall be provided through the acquisi-
tion or development of additional public housing dwell-
ing units or through project-based assistance; and 
"(ii) not more than 50 percent of such additional 
dwelling units shall be provided through tenant-based 
assistance under section 8 (excluding vouchers under 
section 8(o)) having a term of not less than 5 years;"; 
and 
(5) by adding at the end the following new flush matter: 
"except that, in any 5-year period, a public housing agency 
may demolish not more than the lesser of 5 dwelling units 
or 5 percent of the total dwelling units owned and operated 
by the public housing agency, without providing an additional 
dwelling unit for each such public housing dwelling luiit to 
be demolished, but only if the space occupied by the demolished 
unit is used for meeting the service or other needs of public 
housing residents.". 
(c) SET-ASIDES FOR REPLACEMENT HOUSING.—Section 18 of the 
United States Housing Act of 1937 (42 U.S.C. 1437p) is amended— 
(1) by redesignating subsection (e) as subsection (f); and 
(2) by inserting after subsection (d) the following new sub-
section: 
"(eXD In each of fiscal years 1993 and 1994, the Secretary 
may reserve from any budget authority appropriated for such year 
for assistance under section 8 that is available for families not 
currently receiving such assistance not more than 10 percent of 
such budget authority for providing replacement housing under 
subsection (bX3XA) for units demolished or disposed of pursuant 
to this section. 
"(2) In each of fiscal years 1993 and 1994, the Secretary may 
reserve from any budget authority appropriated for such year for 
development of public housing under section 5(aX2) not more than 
the lesser of 30 percent of such budget authorization or 
$150,000,000, for providing replacement housing under subsection 
(bX3)(A) for units demolished or disposed of pursuant to this 
section.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3695 
(d) YOLO COUNTY HOUSING AUTHORITY.—The Secretary of 
Housing and Urban Development shall approve the application 
for disposition by the Yolo County Housing Authority (CA30-PO-
003 and CA30-PO44-099), provided that the application states 
that the tenant councils, resident management corporation, and 
tenant cooperative, if any, shall be given appropriate opportunities 
to purchase the new replacement imits, which shall be available 
and ready for occupancy before the disposition of the existing subject 
units. The new units shall be considered public housing for the 
purposes of the United States Housing Act of 1937 for which the 
Secretary shall provide annual contributions for operation using 
any amounts made available under section 9(c). 
SEC. 117. PUBLIC HOUSING RESIDENT MANAGEMENT. 
Section 20(f)(3) of the United States Housing Act of 1937 (42 
U.S.C. 1437r(fK3)) is amended to read as follows: 
"(3) 
AUTHORIZATION 
OF APPROPRIATIONS.—There 
are 
authorized to be appropriated to carry out this subsection 
$4,750,000 for fiscal year 1993 and $4,949,500 for fiscal year 
1994.". 
SEC. 118. PUBUC HOUSING HOMEOWNERSHIP. 
(a) HOMEOWNERSHIP ASSISTANCE,—Section 21(a)(2)(C) of the 
United States Housing Act of 1937 (42 U.S.C. 1437s(a)(2XC)) is 
amended— 
(1) in the first sentence, by striking "the effective date 
of the regulations implementing title III of this Act" and insert-
ing "February 4, 1991"; and 
(2) in the second sentence— 
(A) by striking "effective"; and 
(B) by striking "such Act" and inserting "the Cranston-
Gonzalez National Affordable Housing Act". 
(b) CONDITIONS OF PURCHASE.—Section 21(aX3XC) of the 
United States Housing Act of 1937 (42 U.S.C. 1437s(aX3XC)) is 
amended— 
(1) in the first sentence, by striking "the effective date 
of the regulations implementing title III of this Act" and insert-
ing "February 4,1991"; and 
(2) in the second sentence— 
(A) by striking "effective"; and 
(B) by striking "such title" and inserting "the Cranston-
Gonzalez National Affordable Housing Act". 
SEC. 119. PUBLIC HOUSING FAMILY INVESTMENT CENTERS. 
Section 22(k) of the United States Housing Act of 1937 (42 
U.S.C. 1437t(k)) is amended to read as follows: 
"(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $25,000,000 for fiscal 
year 1993 and $26,050,000 for fiscal year 1994.". 
SEC. 120. REVITALIZATION OF SEVERELY DISTRESSED PUBUC HOUS-
ING. 
Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.) is amended by adding at the end the following new 
section: 
106 STAT. 3696 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 1437v. 
«<SEC. 24. REVTTALIZATION OF SEVERELY DISTRESSED PUBLIC HOUS-
ING. 
"(a) PROGRAM AUTHORITY.—The Secretary may make— 
"(1) planning grants under subsection (c) to enable 
applicants to develop revitalization programs for severely dis-
tressed public housmg in accordance with this section; and 
"(2) implementation grants under subsection (d) to carry 
out revitalization programs for severely distressed public hous-
ing in accordance with this section. 
"(b) DESIGNATION OF ELIGIBLE PROJECTS.— 
"(1) IDENTIFICATION.—Not later than 90 days after the 
date of enactment of the Housing and Community Development 
Act of 1992, public housing agencies shall identify, in such 
form and manner as the S^retary may prescribe, any public 
housing projects that they consider to be severely distressed 
public housing for purposes of receiving assistance imder this 
section. 
"(2) REVIEW BY SECRETARY.—The Secretary shall review 
the projects identified pursuant to paragraph (1) to ascertain 
whether the projects are severely distressed housing (as such 
item is defined in subsection (n)). Not later than 180 days 
after the date of enactment of this section, the Secretary shall 
publish a list of those projects that the Secretary determines 
are severely distressed public housing. 
"(3) APPEAL OF SECRETARY'S DETERMINATION.—^The Sec-
retary shall establish procedures for public housing agencies 
to appeal the Secretar}r's determination that a project identified 
by a public housing agency is not severely distressed. 
"(c) PLANNING GRANTS.— 
"(1) IN GENERAL.—The Secretary may make plginning 
grants under this subsection to applicants for the purpose of 
developing revitalization programs for severely distressed pub-
lic housing under this section. 
"(2) AMOUNT.—The amount of a planning grant under this 
subsection may not exceed $200,000 per project, except that 
the Secretary may for good cause approve a grant in a higher 
amount. 
"(3) EuGiBLE ACTIVITIES.—A planning grant may be used 
for activities to develop revitalization progrEims for severely 
distressed public housing, including— 
"(A) studies of the different options for revitalization, 
including the feasibility, costs and neighborhood impact 
of such options; 
"(B) providing technical or organizational support to 
ensure resident involvement in all phases of the planning 
and implementation processes; 
"(C) improvements to stabilize the development, includ-
ing security investments; 
"(D) conducting workshops to ascertain the attitudes 
and concerns of the neighboring community; 
"(E) preliminary architectural and engineering work; 
"(F) planning for economic development, job training 
and self-sufficiency activities that promote the economic 
self-sufficiency 
of residents 
under 
the 
revitalization 
program; 
"(G) designing a suitable replacement housing plan, 
in situations where partial or total demolition is considered; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3697 
"(H) planning for necessary management improve-
ments; and 
"(I) preparation of an application for an implementation 
grant imder this section. 
''(4) APPLICATIONS.—^An application for a planning grant 
shall be submitted in such form and in accordance with such 
procedures as the Secretary shall establish. The Secretary shall 
require that an application contain at a minimum— 
''(A) a request for a planning grant, specifying the 
activities proposed, the schedule for completing the activi-
ties, the personnel necessary to complete the activities 
and the amount of the grant requested; 
''(B) a description of the applicant and a statement 
of its qualifications; 
"(C) identification and description of the project 
involved, and a description of the composition of the ten-
ants, including family size and income; 
"(D) a certification by the public official responsible 
for submitting the comprehensive housing affordability 
strategy under section 105 of the Cranston-Gronzalez 
National Affordable Housing Act that the proposed activi-
ties are consistent with the approved housing strategy of 
the State or unit of general local government within which 
the project is located; and 
"(E) a certification that the applicant will comply with 
the requirements of the Fair Housing Act, title \^ of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the Age Discrimination Act of 1975, and 
will affirmatively further fair housing. 
"(5) SELECTION CRITERIA.—The Secretary shall, by regula- Regulations. 
tion, establish selection criteria for a national competition for 
assistance under this subsection, which shall include— 
"(A) the qualities or potential capabilities of the 
applicant; 
"(B) the extent of resident interest and involvement 
in the development of a revitalization program for the 
project; 
"(C) the extent of involvement of local public and pri-
vate entities in the development of a revitalization program 
for the project and in the provision of supportive services 
to project residents; 
"(D) the potential of the applicant for developing a 
successful and affordable revitalization program and the 
suitability of the project for such a program; 
"(E) national geographic diversity among housing for 
which applicants are selected to receive assistance; 
"(F) the extent of the need for and potential impact 
of the revitalization program; and 
"(G) such other factors that the Secretary determines 
are appropriate for purposes of carrying out the program 
established by this section in an effective and efficient 
manner. 
"(6) 
NOTIFICATION.—The Secretary shall 
notify 
each 
applicant, not later than 6 months after the date of the submis-
sion of the application, whether the application is approved 
or disapproved. 
"(d) IMPLEMENTATION GRANTS.— 
106 STAT. 3698 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(1) IN GENERAL.—^The Secretary may make implementa-
tion grants iinder this subsection to applicants for the piirpose 
of canying out revitalization programs for severely distressed 
public housing imder this section. 
"(2) ELIGIBLE ACTIVITIES.—Implementation grants may be 
used for activities to carry out revitalization programs for 
severely distressed public housing, including— 
"(A) architectural and engineering work; 
"(B) the redesign, reconstruction, or redevelopment of 
the severely distressed public housing development, includ-
ing the site on which the development is located; 
"(C) covering the administrative costs of the applicant, 
which may not exceed such portion of the assistance pro-
vided under this subsection as the Secretary may prescribe; 
"(D) any necessary temporary relocation of tenants dur-
ing the activity specified under subparagraph (B); 
"(E) pajrment of legal fees; 
"(F) economic development activities that promote the 
economic self-sufficiency of residents under the revitaliza-
tion program; 
"(G) necessary management improvements; 
"(H) transitional security activities; and 
"(I) any necessary support services, except that not 
more than 15 percent of any grant under this subsection 
may be used for such purpose. 
"(3) APPLICATION.—^/oi application for a implementation 
grant shall be submitted by an applicant in such form and 
in accordance with such procedures as the Secretary shall estab-
lish. The Secretary shall require that an application contain 
at a minimum— 
"(A) a request for an implementation grant, specifying 
the amount of the grant requested and its proposed uses; 
"(B) a description of the applicant and a statement 
of its qualifications; 
"(C) identification and description of the project 
involved, and a description of the composition of the ten-
ants, including family size and income; 
"(D) a certification by the public official responsible 
for submitting the comprehensive housing affordability 
strategy under section 105 of the Cranston-Conzalez 
National Affordable Housing Act that the proposed activi-
ties are consistent with the approved housing strategy of 
the State or unit of general local government within which 
the project is located; and 
"(E) a certification that the applicant will comply vdth 
the requirements of the Fair Housing Act, title VI of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the Age Discrimination Act of 1975, and 
will affirmatively further fair housing. 
Regulations. 
"(4) SELECTION CRITERIA.—^The Secretary shall, by regula-
tion, establish selection criteria for a national competition for 
assistance under this subsection, which shall include— 
"(A) the qualities or potential capabilities of the 
applicant; 
"(B) the extent of resident involvement in the develop-
ment of a revitalization program for the project; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3699 
"(C) the extent of involvement of local public and pri-
vate entities in the development of a revitalization program 
for the project and in the provision of supportive services 
to project residents; 
"(D) the potential of the applicant for developing a 
successful ana affordable revitalization program and the 
suitability of the project for such a program; 
"(E) national geographic diversity among housing for 
which applicants are selected to receive assistance; 
"(F) the extent of the need for and potential impact 
of the revitalization program; and 
"(G) such other factors that the Secretary determines 
are appropriate for purposes of carrying out the program 
established by this subtitle in an effective and efficient 
manner. 
"(5) 
NOTIFICATION.—The Secretary 
shall 
notify 
each 
applicant, not later than 6 months after the date of the submis-
sion of the application, whether the application is approved 
or disapproved. 
"(e) EXCEPTIONS TO GENERAL PROGRAM REQUIREMENTS.— 
"(1) LONG-TERM VIABILITY.—The Secretary may waive or 
revise rules established under this title governing rents, income 
eligibility, and other areas of public housing management, to 
permit a public housing agency to undertake measures that 
enhance the long-term viability of a severely distressed public 
housing project revitalized under this section. 
"(2) SELECTION OF TENANTS.—For projects revitalized under 
this section, a public housing agency may select tenants pursu-
ant to a local system of preferences, in lieu of selecting tenants 
pursuant to the preferences specified imder section 6(cX4XAXi). 
Such local system shall be established in writing and shall 
respond to local housing needs and priorities as determined 
by the public housing agency. The public housing agency shall 
hold 1 or more public hearings to obtain the views of low-
income tenants and other interested parties on the housing 
needs and priorities of the agency's jurisdiction. 
"(f) OTHER PROGRAM REQUIREMENTS.— 
"(1) COST LIMITATIONS.—Subject to the provisions of this 
section, the Secretary— 
"(A) shall establish cost limitations on eligible activities 
under this section sufficient to provide for effective revital-
ization programs; and 
"(B) may establish other cost limitations on eligible 
activities under this section. 
"(2) ECONOMIC DEVELOPMENT.—Not more than an aggre-
gate of $250,000 from amounts made available under sub-
sections (c) and (d) may be used for economic development 
activities under subsections (c) smd (d) for any project, except 
that the Secretary may for good cause waive the applicability 
of this paragraph for a project. 
"(g) ADMINISTRATION.—For the purpose of canying out the 
revitalization of severely distressed public housing in accordance 
with this section, the Secretary shall establish within the Depart-
ment of Housing and Urban Development an Office of Severely 
Distressed Public Housing Revitalization. 
"(h) DEFINITIONS.—For the purposes of this section: 
"(1) APPLICANT,—^The term 'applicant' means— 
106 STAT. 3700 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(A) any public housing agency that is not designated 
as troubled pursuant to section 6(jX2); 
"(B) any public housing agency or private housing 
management agent selected, or receiver appointed pursu-
ant, to section 6(j)(3); 
"(C) any public housing agency that is designated as 
troubled pursuant to section 6(j)(2), if such agency acts 
in concert with a private nonprofit organization, another 
public housing agency that is not designated as a troubled 
agency, resident management corporation or other entity 
approved by the Secretary; and 
"(D) any public housing agency that is designated as 
troubled pursuant to section 6(jX2) that— 
"(i) is so designated principally for reasons that 
will not affect the capacity of the agency to carry 
out a revitalization program; 
"(ii) is 
making 
substantial 
progress 
toward 
eliminating the deficiencies of the agency; or 
"(iii) is otherwise determined by the Secretary to 
be capable of carrying out a revitalization program. 
"(2) PRIVATE NONPROFIT coRPORATiON.^The term 'private 
nonprofit organization' means any private nonprofit organiza-
tion (including a State or locally chartered nonprofit organiza-
tion) that— 
"(A) is incorporated under State or local law; 
"(B) has no part of its net earnings inuring to the 
benefit of any member, founder, contributor, or individual; 
"(C) complies with standards of financial accountability 
acceptable to the Secretary; and 
"(D) has among its purposes significant activities 
related to the provision of decent housing that is affordable 
to very low-income families. 
"(3) PUBLIC HOUSING AGENCY.—The term 'public housing 
agenc/has the meaning given the term in section 3(b), except 
that it does not include any Indian housing authority. 
"(4) RESIDENT MANAGEMENT CORPORATION.—The term 'resi-
dent management corporation' means a resident management 
corporation established in accordance with the requirements 
of the Secretary under section 20. 
"(5) SEVERELY DISTRESSED PUBLIC HOUSING.—The term 
'severely distressed public housing* means a public housing 
project— 
"(A)thalr-
"(i) requires major redesign, reconstruction or 
redevelopment, or partial or total demolition, to correct 
serious deficiencies in the original design (including 
appropriately 
high 
population 
density), 
deferred 
maintenance, physical deterioration or obsolescence of 
major systems and other deficiencies in the physical 
plant of the project; 
"(ii) is occupied predominantly by families with 
children who are in a severe state of distress, 
characterized 
by such factors 
as high rates of 
unemployment, 
teenage 
pregnancy, 
single-parent 
households, long-term dependency on public assistance 
and minimal educational achievement; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3701 
"(iii) is in a location for recurrent vandalism and 
criminal activity (including drug-related criminal activ-
ity); and 
"(iv) cannot remedy the elements of distress speci-
fied in clauses (i) through (iii) through assistance under 
other programs, such as the programs under section 
9 or 14, or through other amninistrative means; or 
"(B) that— 
"(i) is owned by a public housing agency designated 
as troubled pursuant to section 6(jX2); 
**(ii) has a vacancy rate, as determined by the 
Secretary, of 50 percent or more, unless the project 
or building is vacant because it is awaiting rehabilita-
tion under a modernization program under section 14 
that^ 
"(1) has been approved and funded; and 
"(II) as determined by the Secretary, is on 
schedule and is expected to result in full occupancy 
of the project or building upon completion of the 
program; and 
(iii) in the case of individual buildings, the build-
ing is, in the Secretary's determination, sufficiently 
separable from the remainder of the project to make 
use of the building feasible for purposes of this subtitle, 
"(i) ANNUAL REPORT.—The Secretary shall submit to the Con-
gress an annual report setting forth— 
"(1) the number, type, and cost of public housing units 
revitalized pursuant to this section; 
"(2) the stetus of projects identified as severely distressed 
public housing pursuant to subsection (b); 
"(3) the amount and type of financial assistance provided 
under and in conjunction with this section; and 
"(4) the recommendations of the Secretory for statutory 
and regulatory improvemento to the program estoblished by 
this section.". 
SEC. 121. CHOICE IN PUBUC HOUSING MANAGEMENT. 
(a) PURPOSE.—^The purpose of this section is to encourage choice 
in management of distressed public housing projects by residents 
and increased resident management of public housing projecto, as 
a means of improving living conditions in public housing projects, 
by providing for resident councils and resident management cor-
porations to transfer the management of distressed projects to 
alternative managers. 
(b) AMENDMENT TO 1937 ACT.—Title I of the United Stetes 
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding 
after section 24 (as added by section 120 of this Act) the following 
new section: 
•«EC. 25. CHOICE IN PUBUC HOUSING MANAGEMENT. 
"(a) SHORT TITLE.—^This section may be cited as the 'Choice 
in Public Housing Management Act of 1992'. 
"(b) FUNDING.— 
"(1) REHABILITATION AND REDEVELOPMENT GRANTS.—From 
amounts reserved under section 14(kX2) for each of fiscal years 
1993 and 1994, Uie Secretary may reserve not more than 
$50,000,000 in each such fiscal year for activities under this 
section (which may include funding operating reserves for 
42 use 1437w 
note. 
Choice in Public 
Housing 
Management 
Act of 1992. 
42 u s e 1437w. 
106 STAT. 3702 
PUBLIC LAW 102-550—OCT. 28, 1992 
eligible housing transferred under this section). The Secretary 
may make grants to managers and ownership entities to 
rehabilitate eligible housing in accordance with this section, 
as appropriate. 
"(2) TECHNICAL ASSISTANCE.—The Secretary may use up 
to 5 percent of the total amount reserved under paragraph 
(1) for any fiscal year to provide, by contract, technical assist-
ance to residents of public housing and resident councils to 
help such residents and councils make informed choices about 
options for alternative management under this section. 
"(c) PROGRAM AUTHORITY.— 
"(1) TRANSFER OF MANAGEMENT.— 
"(A) IN GENERAL.—The Secretary may approve not 
more than 25 applications submitted for fiscal years 1993 
and 1994 by resident councils for the transfer of the 
management of distressed public housing projects, or one 
or more buildings within projects, that are owned or oper-
ated by troubled public housing agencies, from public hous-
ing agencies to alternative managers. 
"(B) REQUIRED VOTES.—^An application for such trans-
fer may be submitted and approved only if a majority 
of the members of the board of the resident council has 
voted in favor of the proposed transfer of management 
responsibilities, and a majority of the residents has also 
voted in favor of the transfer in an election supervised 
by a disinterested third party. 
"(C) ASSISTANCE OF MANAGEMENT 
SPECIALIST.—-Any 
resident council seeking to transfer management of dis-
tressed public housing under this section shall, in coopera-
tion with the public housing agency for such housing, select 
a qualified public housing management specialist to assist 
in identifying and acquiring a capable manager for the 
housing. 
"(2) 
REHABILITATION AND CAPITAL IMPROVEMENTS.—The 
Secretary may make rehabilitation grants and provide capital 
improvement funding under subsection (e) in connection with 
the transfer of eligible housing to a manager under this section. 
"(d) OPERATING SUBSIDIES.— 
"(1) AUTHORITY TO PROVIDE.—^The Secretary may make 
operating subsidies under section 9 available to managers under 
this section. 
"(2) AMOUNT OF SUBSIDY.—The Secretary shall establish 
the amount of the operating subsidies made available to a 
manager based on the share for the housing under section 
9 as determined by the Secretary. 
"(3) EFFECT ON PHA GRANT.—Operating subsidies for any 
public housing agency transferring management under this 
section shall be reduced in accordance with the requirements 
of section 9. 
"(e) REHABILITATION GRANTS AND CAPITAL IMPROVEMENT FUND-
ING.— 
"(1) REHABILITATION GRANTS.—An application under sub-
section (D may request approval of amounts set aside under 
subsection (b) for the rehabilitation of eligible housing. The 
manager and the Secretary shall enter into a contract governing 
the use of any such assistance provided. 
"(2) ANNUAL CAPITAL IMPROVEMENT FUNDING.— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3703 
"(A) AuTHORnrY TO PROVIDE.—The Secretary may make 
funding for capital improvements available annually from 
amoimts under section 14 to managers of eligible housing. 
In accordance with the contract entered into pursuant to 
subsection (h), each manager receiving such funding shall 
establish a capital improvements reserve account and 
deposit in the account each year an amount not less than 
the annual amount of comprehensive grant funds it 
receives. Amounts in the reserve account may be used 
only for capital improvements and replacements. 
"(B) AMOUNT OF SUBSIDY.—The Secretary shall estab-
lish the amount made available to a manager under para-
graph (1) for capital improvements based on the share 
for the housing under the comprehensive grant formula 
and, to the extent practicable, the public housing agencjr's 
comprehensive grant plan, in accordance with section 14, 
as determined by the Secretary. 
"(C) LIMITATION IN THE CASE OF RECENT REHABILITA-
TION.—^Where eligible housing has received rehabilitation 
funding under paragraph (1) or has otherwise been com-
prehensively modernized within 3 years before the effective 
date of the contract between the Secretary and the manager 
for management of the eligible housing, only the accrual 
portion of the comprehensive grant formula amount shall 
be available for payment to the manager. 
"(D) EFFECT ON PHA GRANT.—The formula amoimt of 
a comprehensive grant for a public housing agency transfer-
ring the housing imder this section shall be reduced in 
accordance with the requirements of section 14. 
"(3) RELATIONSHIP TO SECTION 14.—The provisions of section 
14 shall apply with respect to rehabilitetion grants under para-
graph (1) or capitel improvement funding under paragraph 
(2); except that the Secretory may waive the applicability of 
any of the provisions of such section where such provisions 
are not appropriate tx) the assistonce under this subsection. 
"(f) APPLICATION.— 
"(1) FORM AND PROCEDURES.— 
"(A) IN GENERAL.—^To be eligible for approval for trans-
fer of management from a public housing agency to a 
manager and for a grant under subsection (e), a resident 
council shall submit an application to the Secretory in 
such form and in accordance with such procedures as the 
Secretory shall estoblish. 
"(B) PHA COMMENT ON APPLICATION.—A resident coun-
cil submitting an application shall provide the public hous-
ing agency that owns or operates the housing involved 
a reasonable opportunity to comment on the application, 
as the Secretory shall prescribe. 
"(C) PHA PROPOSAL.—^The public housing agency may 
present to the resident coimcil a proposal for the continued 
management of the housing by the agency, and the resident 
coimcil shall give reasonable consideration to any such 
proposal. 
"(2) MINIMUM REQUIREMENTS.—The Secretory shall require 
that an application contoin— 
"(A) a description of the resident council and docu-
mentation of its authority; 
59-194 O—93 
3:QL3(Pt. 5) 
106 STAT. 3704 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(B) documentation of the votes required under sub-
section (cXl)(B); 
"(C) a description of the proposed manager selected 
by the appUcant (in accordance with procedures estabhshed 
or approved by the Secretary) and documentation of its 
capacity to manage the eUgible housing; 
"(D) a plan for carrying out the manager's responsibil-
ities for managing the eligible housing; 
"(E) documentation that the project (or building or 
buildings) for which management transfer is proposed is 
eligible housing; 
"(F) documentation that each of the requirements 
under paragraph (IXB) have been fulfilled; 
"((jrXi) if the application includes a request for a 
rehabilitation grant under subsection (e) (which shall be 
included in any application involving eligible housing that 
is 50 percent or more vacant), the basis for the estimate 
of the amount requested, including— 
"(I) the estimate of the eligible housing's need 
imder the public housing agenc/s comprehensive plan 
(under section 14(e)(1)); and 
"(II) an explanation, where appropriate, if an 
amount higher than the amount planned by the agency 
is being requested; or 
"(ii) if the application does not include a request for 
a rehabilitation grant under subsection (e), a demonstration 
that needs for capital improvements and replacement for 
the housing can reasonably be expected to be funded from 
funding for capital improvements under subsection (e); 
"(H) if the manager proposes to administer a program 
to enable residents to achieve economic independence and 
self-sufficiency, a description of the program and evidence 
of commitment of resources to the program; 
"(I) an analysis showing that the planned rehabilitation 
will result in the long-term viability of the housing at 
a reasonable cost; 
"(J) a certification that the manager will comply with 
the requirements of the Fair Housing Act, title VI of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the Age Discrimination Act of 1975, and 
will affirmatively further fair housing; and 
"(K) such other information that the Secretary consid-
ers appropriate. 
"(g) REVIEW AND APPROVAL BY THE SECRETARY.— 
"(1) APPLICATIONS NOT REQUESTING REHABILITATION ASSIST-
ANCE.—In the case of applications for the transfer of manage-
ment of public housing that do not include a request for 
rehabilitation assistance under subsection (e), the Secretary 
may approve an application that meets the requirements of 
subsection (fK2) and this section. 
"(2) APPLICATIONS REQUESTING REHABILITATION GRANTS.— 
In the case of applications that include a request for rehabilita-
tion assistance under subsection (e), the Secretary shall select 
R^ulations. 
applicants for approval based on a national competition. The 
Secretary shall, by regulation, establish selection criteria for 
the competition which provide for separate rating of applicants 
under this paragraph and of applicants under this section. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3705 
and for selections from a single list of all applicants. The 
criteria shall include— 
"(A) the quality of the plan for rehabilitating the 
eligible housing; 
"(B) the exUmt of the capacity or potential capacity 
of the proposed manager to manage the housing and to 
carry out the rehabilitation program; 
"(C) the extent to which a program is proposed to 
enable residents to achieve economic independence and 
self-sufficiency; 
"(D) the extent to which the planned rehabilitation 
will result in the long-term viabihty of the housing at 
a reasonable cost; and 
"(E) such other criteria as the Secretary may require. 
**(h) CONTRACT BETWEEN SECRETARY AND MANAGER.— 
"(1) TERMS.—^After the Secretary approves an application, 
the Secretary shall enter into a contract with the manager 
for transfer of management of the eligible housing. In addition 
to other contract provisions required under this section, the 
contract shall— 
"(A) give the manager the right to receive operating 
subsidies under subsection (d) and capital improvement 
funding under subsection (e); 
"(B) require the manager to carry out all management 
responsibilities for the eligible housing, as provided in or 
required by the contract; 
"(C) require the manager to carry out, for the eligible 
housing, all management responsibilities applicable to pub-
lic housing agencies owning or operating public housing 
projects, including (i) msdntaining the imits in decent, safe, 
and sanitary condition in accordance with any standards 
for public housing established or adopted by the Secretary, 
(ii) determining eligibility of applicants for occupancy of 
units subject to the requirements of this Act, (iii) terminat-
ing tenancy in accordance with the procedures applicable 
to the section 8 new construction program, and (iv) deter-
mining the amoxmt of rent paid for units in accordance 
with this Act; and 
"(D) permit, but not require, the manager to select 
applicants from the public housing waiting list maintained 
by the public housing agency. 
"(2) EXTENSION, IJXPIRATION, AND TERMINATION.— 
"(A) IN GENERAL.—^The Secretary shall provide for a 
resident council that has entered into a contract under 
this subsection to— 
"(i) approve the renewal of the contract between 
the Secretar]^ and the manager; or 
"(ii) disapprove renewal and submit an application 
to the Secretary, in accordance with subsection (f), 
proposing another manager, which may be the public 
housing agency. 
"(B) DEFAULT.—If the Secretary determines that a 
manager is in default of its responsibilities under the con-
tract, the Secretory may require the resident council to 
submit another application proposing a different laanager, 
which may be thcs public housing agency, 
"(i) OTHER PROGRAM REQUIREMENTS.— 
106 STAT. 3706 
PUBLIC LAW 102-550—OCT. 28, 1992 
Regulations. 
"(1) COST UMITATIONS.—The Secretary may establish cost 
limitations on activities under this section. The amount of 
rehabilitation funds under subsection (eXl) that may be 
approved may not exceed the per unit cost limit applicable 
to the comprehensive grant program under section 14. 
"(2) DEMOLITION AND DISPOSITION NOT PERMITTED.—A man-
ager may not demolish or dispose of eligible housing under 
tms section. 
"(3) 
CAPABIUTY OF RESIDENT MANAGEMENT CORPORA-
TIONS.—^To be eligible to become a manager under this section, 
a resident management corporation— 
"(A) shall demonstrate to the Secretary its ability to 
manage public housing effectively and efEiciently, as deter-
mined by the Secretary, which shall include evidence of 
its most recent financial audit; or 
"(B) shall arrange for operation of the housing by a 
qualified management entity. 
"(4) LIMITATIONS ON PHA LIABILITY.—A public housing 
agency shall not be liable for any act or failure to act by 
the manager or resident council. 
"(5) BONDING AND INSURANCE.—Before assuming any 
management responsibility for eligible housing, a manager shall 
obtain fidelity bonding and insurance, or eqmvalent protection, 
in accordance with regulations and requirements established 
bv the Secretary. Such bonding and insurance, or its equivalent, 
shall be adequate to protect the Secretary and the public hovis-
ing agency against loss, theft, embezzlement, or fraudulent 
acts on the part of the manager or its employees. 
"(6) RESTRICTION ON DISPLACEMENT BEFORE TRANSFER.— 
A public housing agency may not involuntarily displace, as 
determined by the Secretary, any resident of eligible housing 
during the period beginning on the date that an application 
under subsection (0 is submitted by a resident council, and 
ending upon transfer of management of the housing or, if 
the application is disapproved, the date of the disapproval, 
"(j) PERFORMANCE REVIEW AND COMPLIANCE.— 
"(1) 
MONITORING.—The 
Secretary 
shall 
monitor the 
performance of managers under this section and shall assess 
their management performance using the performance indica-
tors established under section 6(jXl). 
"(2) RECORDS, REPORTS, AND AUDITS OF MANAGERS.— 
"(A) KEEPING OF RECORDS.—Each manager and resi-
dent council under this subtitle shall keep such records 
as may be reasonably necessary to disclose the amoiuit 
and the disposition by the manager of the proceeds of 
assistance received under this section and to ensure compli-
ance with the requirements of this section. 
"(B) ACCESS TO DOCUMENTS.— 
"(i) SECRETARY.—^The Secretary shall have access 
for the purpose of audit and examination to any books, 
documents, papers, and records of a manager, resident 
council, and public housing agency that are pertinent 
to assistance received under, and to the requirements 
of, this section. 
"(ii) GAO.—The Comptroller General of the United 
States, and any duly authorized representatives of the 
Comptroller General, shall have access for the purpose 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3707 
of audit and examination to any books, documents, 
papers, and records of a manager and resident council 
that are pertinent to assistance received imder, and 
to the requirements of, this section. 
"(C) REPORTING REQUIREMENTS.—^Each manager shall 
submit to the Secretary such reports as the Secretary deter-
mines appropriattj to carry out the Secretary's responsibil-
ities under this section, including an annual financial audit. 
"(D) ANNUAL REPORT.—^The Secretary shall submit an 
annual report to the Congress evaluating management 
transfers under this section compared to other methods 
of dealing with severely distressed public housing, 
"(k) NONDISCRIMINATION.—No person in the United States 
shall, on the grounds of race, color, national origin, religion, or 
sex, be excluded from participation in, be denied the benefits of, 
or be subjected to discrimination under, any program or activity 
funded in whole or in part with funds made available under this 
section. Any prohibition against discrimination on the basis of age 
under the Age Discrimination Act of 1975 or with respect to an 
otherwise qualified handicapped individual as provided in section 
504 of the Rehabilitation Act of 1973 shall also apply to any such 
program or activity. 
"(1) RELATIONSHIP TO OTHER PROGRAMS.— 
"(1) HOMEOWNERSHIP.—^After a transfer of management in 
accordance with this section, the eligible housing shall remain 
eligible for assistance under title III and for sale under section 
5(h). 
Participation in a homeownership program shall be 
consistent with a contract between the Secretary and a 
manager. 
"(2) SELF-SUFFICIENCY.—^Where an application under sub-
section (f) proposes a program to enable residents to achieve 
economic independence and self-sufficiency, consistent with the 
objectives of the program under section 23, and demonstrates 
that the manager has the capacity to carry out a self-sufficiency 
program, the Secretary may approve such a program. Where 
such a program is approved, the Secretary shall authorize 
the manager to adopt policies consistent with section 23(d) 
(relating to maximum rents and escrow savings accounts) and 
section 23(e) (relating to effect of increases in family income), 
"(m) DEFINITIONS.—For purposes of this section: 
"(1) The term 'eligible housing* means a public housing 
project, or one or more buildings within a project, that— 
"(A) is owned or operated by a troubled public housing 
agency; and 
"(B) has been identified as severely distressed under 
section 24 of this Act. 
In the case of an individual building, the building shall, in 
the determination of the Secretary, be sufficiently separable 
from the remainder of the project to make use of the building 
feasible for purposes of this section. 
"(2) The term 'manager' means one of the following entities 
that has entered into a contract with the Secretary for the 
management of eligible housing under this section: 
"(A) A public or private nonprofit organization (includ-
ing, as determined by the Secretary, such an organization 
sponsored by the public housing agency). 
106 STAT. 3708 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(B) A for-profit entity, if it has (i) demonstrated experi-
ence in providing low-income housing, and (ii) is partici-
pating in joint venture with an organization descrioed in 
paragraph (3). 
"(C) A State or local government, including an agency 
or instrumentality thereof 
"(D) A public housing agency (other than the public 
housing agency that owns the project). 
The term does not include a resident council. 
"(3) The term 'private nonprofit organization' means any 
private nonprofit organization (including a State or locally char-
tered nonprofit organization) that— 
"(A) is incorporated under State or local law; 
"(B) has no part of its net earnings inuring to the 
benefit of any member, founder, contributor, or individual; 
"(C) complies with standards of financial accountability 
acceptable to the Secretary; and 
"(D) has among its purposes significant activities 
related to the provision of decent housing that is affordable 
to low-income families. 
The term includes resident management corporations. 
"(4) The term 'public housing agenc/ has the meaning 
given such term in section 3(b), except that it does not include 
Indian housing authorities. 
"(5) The term 'public nonprofit organization' means any 
public nonprofit entity, except the public housing agency that 
owns the eligible housing. 
"(6) The term 'resident council* means any nonprofit 
organization or association that— 
"(A) is representative of the residents of the eligible 
housing; 
"(B) adopts written procedures providing for the elec-
tion of officers on a regular basis; and 
"(C) has a democratically elected governing board, 
elected by the residents of the eligible housing. 
"(7) The term 'resident management corporation* means 
a resident management corporation established in accordance 
with the requirements of the Secretary under section 20. 
"(8) The term 'troubled public housing agency* means a 
public housing agency with 250 or more units that— 
"(A) has been designated as a troubled public housing 
agency for the current Federal fiscal year, and for the 
2 preceding Federal fiscal years— 
"(i) under section 6(j)(2XAXi); or 
"(ii) before the implementation of such authority, 
under any other procedure for designating troubled 
public housing agencies that was used by the Secretary 
and is determined by the Secretary to be appropriate 
for purposes of this section; and 
"(B) has not met targets for improved performance 
under section 6(jX2XC).*'. 
SEC. 122. ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES. 
(a) EXEMPTION FROM NEW CONSTRUCTION LIMITATION.—Section 
201(c) of the United States Housing Act of 1937 (42 U.S.C. 
1437aa(c)) is amended by inserting before the period at the end 
the following: "or section 6(h) of the United States Housing Act 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3709 
of 1937 (relating to a limitation on contracts involving new 
construction)". 
(b) MODERNIZATION.—-Section 202(bX2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437bb(bX2)) is amended by striking 
"single" in the second sentence. 
(c) PAYMENTS TO MUNICIPALITIES.—Section 203(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437cc(b)) is amended by 
adding at the end the following new sentence: 'Notwithstanding 
any other provision of this Act, the Secretary shall make annusQ 
payments from funds appropriated under section 9(c) to municipali-
ties providing such roads, facilities, and systems in a amount equal 
to— 
"(1) 10 percent of the applicable shelter rent, minus the 
utility allowance; or 
"(2) $150, 
whichever is greater, for each rental housing unit covered by this 
subsection.". 
SEC. 123. PUBUC HOUSING EARLY CHILDHOOD DEVELOPMENT SERV-
ICES. 
Section 222(g) of the Housing and Urban-Rural Recovery Act 
of 1983 (12 U.S.C. 1701z-€ note) is amended to read as follows: 
"(g) AUTHORIZATION OF APPROPRIATIONS.—TO the extent pro-
vided in appropriation Acts, of any amounts appropriated for fiscal 
year 1993 under section 103 of the Housing and Community Devel-
opment Act of 1974, $5,000,000 shall be available to carry out 
tfds section. To the extent approved in appropriation Acts, of any 
amounts appropriated for fiscal year 1994 imder section 5(c) of 
the United States Housing Act of 1937 for grants for the develop-
ment of public housing, $5,210,000 shall be available to carry out 
this section. Any such amoimts shall remain available until 
expended.". 
SEC. 124. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES. 
(a) 
FUNDING.—Section 
518(a) of the 
Cranston-Gonzalez 
National Affordable Housing Act (12 U.S.C. 1701z-6 note) is 
amended by striking the subsection designation and all that follows 
through the end of the first sentence and inserting the following: 
"(a) FUNDING.—^To the extent provided in appropriation Acts, 
of any amoimts appropriated under section 5(c) of the United States 
Housing Act of 1937 for fiscal year 1993 for public housing grants 
for Indian housing, $5,200,000 may be used to carry out the dem-
onstration program under this section. To the extent provided in 
appropriation Acts, of any amoimts appropriated under section 5(c) 
of the United States Housing Act of 1937 for fiscal year 1994 
for public housing grants for Indian housing, $5,418,400 may be 
used to carry out the demonstration progrcun under this section.". 
(b) ELIGIBLE RECIPIENTS.—The second sentence of section 518(a) 
of the Cranston-Gonzalez National Affordable Hoiising Act (12 
U.S.C. 1701Z-6 note) is amended— 
(1) by inserting ", Indian housing authorities, and Indian 
tribes" after "nonprofit organizations"; and 
(2) by inserting ", housing authorities, and tribes" after 
"such organizations". 
106 STAT. 3710 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 125. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEM-
ONSTRATION. 
Section 521(g) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 1437t note) is amended to read as follows: 
"(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for carrying out the demonstration program 
under this section $200,000 for fiscal year 1993 and $208,400 for 
fiscal year 1994.". 
SEC. 126. PUBLIC HOUSING YOUTH SPORTS PROGRAMS. 
(a) FUNDING FROM PUBLIC AND ASSISTED HOUSING DRUG ELIMI-
NATION FUNDS.—Section 5130 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11909) is amended by adding at the end the following 
new subsection: 
"(c) SET-ASIDE FOR YOUTH SPORTS PROGRAMS.—Of any amount 
made available in any fiscal year to carry out this chapter, 5 
percent of such amount shall be available for public housing youth 
sports program grants under section 520 of the Cranston-Gonzalez 
National Affordable Housing Act for such fiscal year.". 
(b) ELIGIBILITY OF INSTITUTIONS OF HIGHER LEARNING.— 
(1) IN GENERAL.—Section 520(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 11903a(b)) is 
amended— 
(A) in paragraph (6), by striking "and" at the end; 
(B) in paragraph (7), by striking the period at the 
end and inserting "; and"; and 
(C) by adding at the end the following new paragraph: 
"(8) institutions of higher learning that have never partici-
pated in a youth sports program assisted under this section.". 
(2) TRANSPORTATION COSTS AS ELIGIBLE EXPENSE.—Section 
520(d) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 11903a(d)) is amended by adding at the end 
the following new paragraph: 
"(4) In the case only of an eligible entity described in 
subsection (b)(8), any transportation costs in connection with 
the program.". 
Florida. 
(c) DEMONSTRATION PROGRAM.—Of any amounts made available 
in fiscal year 1993 for carrying out section 520 of the Cranston-
Gronzalez National Affordable Housing Act, the Secretary of Housing 
and Urban Development shall provide not more than $500,000 
for the program known as the "Success Through Academic and 
Recreational Support" program, administered by the City of Fort 
Myers, Florida, to demonstrate the effectiveness of programs that 
use trained counselors to run sports and academic activities for 
at-risk children, including children of low-income families residing 
in public housing. The grantee shall comply with all applicable 
program requirements under subsections (c), (d), (e), and (h) of 
such section. The Secretary shall evaluate the advantages of the 
program assisted under this subsection and determine how the 
program may provide a model for other cities conducting, or 
interested in conducting, similar activities. 
SEC. 127. NATIONAL COMMISSION ON DISTRESSED PUBLIC HOUSING. 
(a) TERMINATION.—Section 507 of the Department of Housing 
and Urban Development Reform Act of 1989 (12 U.S.C. 1715z-
la note) is amended by striking "upon the expiration of 18 months 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3711 
42 use 1437aa 
note. 
following the appointment of all the members imder section 503(a)'' 
and inserting "at the end of September 30,1992". 
(b) AUDIT.—Not later than December 30, 1992, the Comptroller Reports. 
General of the United States shall conduct an audit of the financial 
transactions of the National Commission on Distressed Public Hous-
ing to determine the use of any amounts received by the Commission 
from the Federal Government before October 1, 1992, and shall 
submit a report to the Congress regarding the results of the audit. 
TTie Comptroller General and anv duly authorized representatives 
of the Comptroller General shall have access to, and the right 
to examine and copy, all records and other recorded information 
in any form, and to examine any property, within the possession 
and control of the Commission that the Comptroller Greneral consid-
ers relevant to the audit. 
SEC. 128. NATIONAL COMMISSION ON AMERICAN INDIAN, ALASKA 
NATIVE, AND NATIVE HAWAIIAN HOUSING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—The first sentence of 
section 605 of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 1437aa note) is amended to read 
as follows: There is authorized to be appropriated to carry out 
this title $500,000 for fiscal year 1993.". 
(b) EXTENSION OF TERMINATION DATE.—Section 602(g) of the 
Department of Housing and Urban Development Reform Act of 
1989 (12 U.S.C. 1437aa note) is amended by striking "ui)on the 
expiration of 18 months ififter all members of the Commission are 
appointed under paragraph (1)" and inserting "on October 1, 1993". 
SEC. 129. RENTAL ASSISTANCE FRAUD RECOVERIES. 
(a) IN GENERAL.—Section 326(d) of the Housing and Community 
Development Amendments of 1981 (42 U.S.C. 1437f note) is 
amended to read as follows: 
"(d) RENTAL ASSISTANCE FRAUD RECOVERIES.— 
"(1) AUTHORITY TO RETAIN RECOVERED AMOUNTS.—The Sec-
retary of Housing and Urban Development shall permit public 
housing agencies administering the housing assistence pay-
mente program under section 8 of the United States Housing 
Act of 1937 to retein, out of amounte obtained by the agencies 
from tenants that are due as a result of fraud and abuse, 
an amount (determined in accordance with regulations issued 
by the Secretary) equal to the greater o
f
— 
"(A) 50 percent of the amount actually collected, or 
"(B) the actual, reasonable, and necessary expenses 
related to the collection, including costs of investigation, 
legal fees, and collection agency fees. 
"(2) USE.—^Amomits reteined by an agency shall be made 
available for use in support of the affected program or project, 
in accordance with regulations issued by the Secretary. Where 
the Secretary is the principal party initiating or sustaining 
an action to recover amounts from families or owners, the 
provisions of this section shall not apply. 
"(3) RECOVERY.—Amounts may be recovered under this 
paragraph— 
"(A) bv an agency throiu^h a lawsuit (including settle-
ment of the lawsuit) broiight by the agency or through 
court-ordered restitution pursuant to a criminal proceeding 
resulting from an agency 
s investigation where the agency 
note. 
106 STAT. 3712 
PUBLIC LAW 102-550—OCT. 28, 1992 
seeks prosecution of a family or where an agency seeks 
prosecution of an owner; or 
"(B) through administrative repayment agreements 
with a family or owner entered into as a result of an 
administrative grievance procedure conducted by an impar-
tial decisionmaker in accordance with section 6(k) of the 
United States Housing Act of 1937.". 
42 use I437f 
(b) EFFECJTIVE DATE.—SuDsection (a) shall apply with respect 
to actions by pubUc housing agencies initiated on or after the 
date of the enactment of this Act. 
SEC. 130. PROJECT-BASED ACCOUNTING. 
Section 502(cX2) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 1437d note) is amended by inserting before 
the period the following: "for public housing agencies with 500 
or more units and not later than January 1, 1994 for public housing 
agencies with less than 500 units. 
SEC. 131. SALE OF CERTAIN SCATTERED-SITE HOUSING. 
The Secretary of Housing and Urban Development shall author-
ize the Delaware State Housing Authority in the State of Delaware 
to sell scattered-site public housing of the Authority under the 
provisions of section 5(h) of the United States Housing Act of 
1937. Any proceeds from the disposition of such housing shall 
be used to purchase replacement scattered-site dwellings, which 
shall be considered public housing for the purposes of such Act 
and for which the Secretary shall provide annual contributions 
for operation, using amounts made available under section 9(c) 
of such Act. 
SEC. 132. HOMEOWNERSmP DEMONSTRATION PROGRAM IN OMAHA. 
NEBRASKA. 
(a) ESTABLISHMENT.—^The Secretary shall carry out a program 
to facilitate self-sufKciency and homeownership of single-family 
homes administered by the Housing Authority of the city of Omaha, 
in the State of Nebraska (in this section referred to as the "Housing 
Authority^), 
to 
demonstrate 
the 
effectiveness 
of 
promoting 
homeownership and providing support services. 
(b) PARTICIPATING PUBLIC HOUSING UNITS.—For purposes of 
the demonstration program, the Secretary shall authorize tne Hous-
ing Authority to designate single-family housing units for eventual 
homeownership. Over the term of the demonstration, the dem-
onstration program may be applied to not more than 20 percent 
of the total number of public housing units administered by the 
Housing Authority. In conducting the demonstration, the Housing 
Authority shall affirmatively further fair housing objectives. 
(c) NONDISPLACEMENT.—No person who is a tenant of public 
housing may be involuntarily relocated or displaced as a result 
of the demonstration program. 
(d) ECONOMIC SELF-SUFFICIENCY.— 
(1) ESTABUSHMENT OF PARTICIPATION CRITERIA.—The Hous-
ing Authority shall establish criteria for the participation of 
families in the demonstration program. Such criteria shall be 
based on factors that may reasonably be expected to predict 
a family's ability to succeed in the homeownership program 
estabUshed by tms section. 
(2) CONTENTS OF PARTICIPATION CRITERIA.—The criteria 
referred to in paragraph (1) shall include evidence of interest 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3713 
by the family in homeownership, the employment status and 
history of employment of family members, and maintenance 
by the family of the family's previous dwelling. 
(e) PROVISION OF SUPPORTIVE SERVICES.—The Housing Author-
ity shall ensure the availability of supportive services to each family 
participating in the demonstration program through its own 
resources and through coordination with Federal, State, and local 
agencies and private entities. Supportive services available under 
the demonstration program may include counseling, remedial edu-
cation, education for completion of high school, job training and 
preparation, 
financial 
counseling 
emphasizing 
planning 
for 
homeownership, and any other appropriate services. 
(f) REPORTS TO CONGRESS.— 
(1) BIENNIAL REPORT.—^Upon the expiration of the 2-year 
period beginning on the date of enactment of this Act, and 
each 2-year period thereafter, the Secretary of Housing and 
Urban Development shall submit to the Congress a report 
evaluating the efTectiveness of the demonstration program 
established under this section. 
(2) FINAL REPORT.—^Not later than 60 days after termi-
nation of the demonstration program piu'suant to subsection 
(h), the Secretary shall submit to the Congress a final report 
evaluating the effectiveness of the demonstration program. 
(g) REGULATIONS.—Not later than the expiration of the 90-
day period beginning on the date of the enactment of this Act, 
the Secretary shall issue interim regulations to carry out this sec-
tion, which shall take effect upon issuance. The Secretary shall 
issue final regulations to carry out this subtitle after notice and 
opportunity for public comment regarding the interim regulations, 
pursuant to the provisions of section 553 of title 5, United States 
Code (notwithstanding subsections (aX2), (bXB), and (dX3) of such 
section). The duration of the period for public comment shall not 
be less than 60 days, and the final regulations shall be issued 
not later than the expiration of the 60-day period beginning upon 
the conclusion of the comment period and shall take effect upon 
issuance. 
(h) TERMINATION.—^The demonstration program established 
under this section shall terminate 10 years after the date of the 
enactment of this Act. 
Subtitle C—Section 8 Assistance 
SEC. 141. E U G M N J T Y 
OI^ 
LOW-INCOME 
FAMILIES TO 
RECEIVE 
RENTAL ASSISTANCE. 
(a) CERTIFICATES.—^The first sentence of section 8(cX4) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(cX4)) is 
amended by inserting before the first comma the following: "or 
by a family that qualifies to receive assistance under subsection 
(b) pursuant to section 223 or 226 of the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990". 
(b) VOUCHERS.—Section 8(o)(3XA) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(oX3XA)) is amended— 
(1) by striking "or" at the end of clause (iii); and 
(2) by inserting before the period the following: ", or (v) 
a family that qualifies to receive a voucher under section 223 
106 STAT. 3714 
PUBLIC LAW 102-550—OCT. 28, 1992 
or 226 of the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990". 
SEC. 142. CONTRACT ADJUSTMENTS FOR EXPIRATION OF PROPERTY 
TAX EXEMPTION. 
Section 8(cX2XB) of the United States Housmg Act of 1937 
(42 U.S.C. 1437£(cX2XB)) is amended by inserting after the first 
sentence the following new sentence: 'The Secretary shall make 
additional adjustments in the maximum monthly rent for units 
under contract (subject to the availability of appropriations for 
contract amendments) to the extent the Secretary determines such 
adjustments are necessary to reflect increases in the actual and 
necessary expenses of owning and maintaining the units that have 
resulted from the expiration of a real property tax exemption.". 
SEC. 143. TERMINATION OF CONTRACTS. 
The last sentence of section 8(cX9) of the United States Housing 
Act of 1937 (42 U.S.C. 1437£(cX9)) is amended by inserting before 
the period at the end the following: ", and such term shall include 
termination of the contract for business reasons". 
SEC. 144. PREFERENCES FOR VETERANS WITH DISABIUTIES THAT 
PREVENT USE OF HOME. 
(a) CERTIFICATES.—Section 8(dXlXAXii) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(dXlXAXii)) is amended— 
(1) by striking "(V)" and inserting "(VI)"; and 
(2) by inserting after "adoption is not available;" the follow-
ing: "(V) assisting veterans who are eligible and have applied 
for assistance, will use the assistance for a dwelling unit 
designed for the handicapped, and, upon discharge or eligibility 
for discharge from a hospital or nursing home, have physical 
disability which, because of the configuration of their homes, 
prevents them from access to or use of their homes;". 
(b) VOUCHERS.—The third sentence of section 8(oX3XB) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(oX3XB)) is 
amended— 
(1) by striking "(v)" and inserting "(vi)"; and 
(2) by inserting after "adoption is not available;" the follow-
ing: "(v) assisting veterans who are eligible and have applied 
for assistance, will use the assistance for a dwelling unit 
designed for the handicapped, and, upon discharge or eligibility 
for chscharge from a hospital or nursing home, have physical 
disability which, because of the configuration of their homes, 
prevents them from access to or use of their homes;". 
SEC. 145. TERMINATION OF TENANCY FOR CRIMINAL ACTIVITY. 
Section 8(dXlXBXiii) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(dXlXBXiii)) is amended— 
(1) by inserting ", any criminal activity that threatens 
the health, safety, or right to peaceful ei\joyment of their resi-
dences by persons residing in the inunediate vicinity of the 
premises," before "or any drug-related"; and 
(2) by striking "public housing tenant" and inserting "ten-
ant of any unit". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3715 
SEC. 146. DEFINITIONS OF "PROJECT-BASED ASSISTANCE" AND TEN-
ANT-BASED ASSISTANCE". 
Section 8(f) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(f)) is amended— 
(1) in paragraph (4), by striking "and" at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
"(6) the term 'project-based assistance' means rental assist-
ance under subsection (b) that is attached to the structure 
pursuant to subsection (d)(2); and 
"(7) the term 'tenant-based assistance' means rental assist-
ance under subsection (b) or (o) that is not project-based 
assistance.". 
SEC. 147. PORTABIUTY. 
Section 8(r)(l) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(r)) is amended by inserting before the period at the 
end the following: "; except that any family not living within the 
jurisdiction of a public housing agency at the time that such family 
applies for assistance from such agency shall, during the 12-month 
period beginning upon the receipt of any tenant-based rental assist-
ance made available on behalf of the family, use such assistance 
to rent an eligible dwelling unit located within the jurisdiction 
served by such public housing agency". 
SEC. 148. FAMILY UNIFICATION ASSISTANCE. 
Section 8(x)(l) of the United States Housing Act of 1937 (12 42USCi437f. 
U.S.C. 1437fi:x)(l)) is amended to read as follows: 
"(1) INCREASE IN BUDGET AUTHORITY.—The budget author-
ity available under section 5(c) for assistance under section 
8(b) is authorized to be increased by $100,000,000 on or after 
October 1, 1992, and by $104,200,000 on or after October 1, 
1993.". 
SEC. 149. IMPLEMENTATION OF AMENDMENTS TO PROJECT-BASED 
CERTIFICATE PROGRAM. 
The Secretary of Housing and Urban Development shall issue 
any final regulations necessary to carry out the amendments made 
by section 547 of the Cranston-Gonzalez National Affordable Hous-
ing Act not later than the expiration of the 180-day period beginning 
on the date of the enactment of this Act. The regulations shall 
be issued after notice and opportunity for public comment pursuant 
to the provisions of section 553 of title 5, United States Code 
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such sec-
tion) and shall take effect upon the expiration of the 30-day period 
beginning upon issuance. 
SEC. 150. EFFECTIVENESS OF SECTION 8 ASSISTANCE FOR PHA-
OWNED UNITS. 
The amendments made by section 548 of the Cranston-Gonzalez 
National Affordable Housing Act shall be effective notwithstanding 
the absence of any regulations issued by the Secretary of Housing 
and Urban Development. 
Regulations. 
42 use 1437f 
note. 
42 use 1437f 
note. 
106 STAT. 3716 
PUBLIC LAW 102-550—OCT. 28, 1992 
Regulations. 
42 use 1437f 
note. 
42 use 1437f 
note. 
eontracts. 
eontracts. 
SEC. 151. IMPLEMENTATION OF INCOME EUGIBILITY PROVISIONS 
FOR SECTION 8 NEW CONSTRUCTION UNITS. 
The Secretary of Housing and Urban Development shall issue 
any final regulations necessary to carry out the provisions of section 
555 of the Cranston-Gonzalez National AiTordable Housing Act (42 
U.S.C. 1437f note) not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act. The 
regulations shall be issued after notice and opportunity for public 
comment pursuant to the provisions of section 553 of title 5, United 
States Code (notwithstanding subsections (aX2), (b)(B), and (dX3) 
of such section) and shall take effect upon the expiration of the 
30-day period beginning upon issuance. 
SEC. 152. MOVING TO OPPORTUNITY FOR FAIR HOUSING. 
(a) AUTHORITY.—^Using any amounts available under subsection 
(e), the Secretary of Housing and Urban Development shall carry 
out a demonstration program to provide tenant-based assistance 
under section 8 of the United States Housing Act of 1937 to assist 
very low-income families with children who reside in public housing 
or housing receiving project-based assistance under section 8 of 
the United States Housing Act of 1937 to move out of areas with 
high concentrations of persons living in poverty to areas with low 
concentrations of such persons. The demonstration program carried 
out under this section shall compare and contrast the costs associ-
ated with implementing such a program (including the costs of 
counseling, supportive services, housing assistance payments and 
other relevant program elements) with the costs associated with 
the routine implementation of the section 8 tenant-based rental 
assistance programs. The Secretary shall enter into annual con-
tributions contracts with public housing agencies to administer 
housing assistance pa3anents contracts under the demonstration. 
(b) ELIGIBLE CITIES.— 
(1) IN GENERAL.—^The Secretary shall carry out the dem-
onstration only in cities with populations exceeding 350,000 
that are located in consolidated metropolitan statistical areas 
(as designated by the Director of the Office of Management 
and Budget) having populations exceeding 1,500,000. 
(2) 1993.—Notwithstanding paragraph (1), in fiscal year 
1993, only the 5 cities selected for the demonstration under 
the item relating to "HOUSING PROGRAMS—ANNUAL CONTRIBU-
TIONS FOR ASSISTED HOUSING (INCLUDING RESCISSION OF FUNDS)" 
of title II of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropria-
tions Act, 1992 (105 Stat. 745), and the City of Los Angeles, 
California, shall be eligible for the demonstration under this 
section. 
(c) SERVICES.—The Secretary shall enter into contracts with 
nonprofit organizations to provide counseling and services in connec-
tion with the demonstration. 
(d) REPORTS.— 
(1) BIENNIAL.—Not later than the expiration of the 2-year 
period beginning on the date of the enactment of this Act 
(and biennially thereafter), the Secretary shall submit interim 
reports to the Congress evaluating the effectiveness of the 
demonstration program under this section. The interim reports 
shall include a statement of the number of persons served, 
the level of counseling and the types of services provided. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3717 
Federal 
Register, 
publication. 
the cost of providing such counseling and services, updates 
on the employment record of families assisted under the pro-
gram, £ind any other information the Secretary considers appro-
priate in evaluating the demonstration. 
(2) FINAL.—Not later than September 30, 2004, the Sec-
retary shall submit a final report to the Congress describing 
the long-term housing, employment, and educational achieve-
ments of the families assisted under the demonstration pro-
gram. Such report shall also contain an assessment of such 
achievements for a comparable population of section 8 recipients 
who have not received assistance under the demonstration 
program. 
(e) FUNDING.—^The budget authority available under section 
5(c) of the United States Housing Act of 1937 for tenant-based 
assistance under section 8 of such Act is authorized to be increased 
by $50,000,000, on or after October 1, 1992, and by $52,100,000, 
on or aft«r October 1, 1993, to carry out the demonstration under 
this section. Any amounts made available under this paragraph 
shall be used in connection with the demonstration under this 
section. 
(f) IMPLEMENTATION.—^The Secretary may, by notice published 
in the Federal Register, establish any requirements necessary to 
carry out the demonstration under this section and the amendment 
made by this section. The Secretary shall publish such notice not 
later than the expiration of the 90-day period beginning on the 
date of the enactment of this Act and shall submit a copy of 
such notice to the Congress not less than 15 days before publication. 
SEC. 153. DIRECTIVE TO FURTHER FAIR HOUSING OBJECTIVES 42 USC 1437f 
UNDER CERTIFICATE AND VOUCHER PROGRAMS. 
note. 
Not later than 2 years after the date of the enactment of 
this Act, the Secretary of Housing and Urban Development, in 
consultation with individuals representing fair housing organiza-
tions, low-income tenants, public housing agencies, and other 
interested parties, shall— 
(1) review and comment upon the study prepared by the 
Comptroller General of the United States pursuant to section 
558(3) of the Cranston-Gonzalez National Affordable Housing 
Act; 
(2) evaluate the implementation and effects of existing 
demonstration and judicially mandated programs that help 
minority families receiving section 8 certificates and vouchers 
move out of areas with high concentrations of minority persons 
living in poverty to areas with low concentrations, including 
how such programs differ from the routine implementation 
of the section 8 certificate and voucher programs; 
(3) independently assess factors (including the adequacy 
of section 8 fair market rentals, the level of counseling provided 
by public housing agencies, the existence of racial and ethnic 
discrimination by landlords) that may impede the geographic 
dispersion of families receiving section 8 certificates and 
vouchers; 
(4) identify and implement any administrative revisions 
that would enhance geographic dispersion and tenant choice 
and incorporate the positive elements of various demonstration 
and judicially mandated mobility programs; and 
106 STAT. 3718 
PUBLIC LAW 102-550—OCT. 28, 1992 
Sports- 
(5) submit to the Congress a report describing its findings 
under paragraphs (1), (2), and (3), the actions taken under 
paragraph (4), and any recommendations for additional dem-
onstration, research, or legislative action. 
SEC. 154. HOUSING ASSISTANCE IN JEFFERSON COUNTY, TEXAS. 
Section 213(e) of the Housing and Community Development 
Act of 1974 (42 U.S.C. 1439(e)) is amended by striking "the Park 
Central New Community Project or in adjacent areas that are 
recognized by the unit of general local government in which such 
Project is located as being included within the Park Central New 
Town in Town Project." and inserting "Jefferson County, Texas.". 
SEC. 155. COMPLIANCE OF CERTAIN ACTIVITIES WITH LIMITATIONS 
ON PROJECT-BASED ASSISTANCE. 
Rehabilitation activities undertaken by the Committee for Dig-
nity and Fairness for the Homeless Housing Development, Inc. 
in connection with 46 dwelling units that were renovated for perma-
nent housing for the homeless and that are located in Philadelphia, 
Pennsylvania, are hereby deemed to have been conducted pursuant 
to an agreement with the Secretary of Housing and Urban Develop-
ment under clause (ii) of the third sentence of section 8(d)(2)(A) 
of the United States Housing Act of 1937 (42 U.S.C. 1437fld)(2XA)). 
Subtitle D—Other Programs 
SEC. 161. PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—The first sentence of 
section 5130(a) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11909(a)) is amended to read as follows: 'There are authorized 
to be appropriated to carry out this chapter $175,000,000 for fiscal 
year 1993 and $182,350,000 for fiscal year 1994.". 
(b) FISCAL YEAR 1993 SET-ASIDES.—Section 5130(b) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11909(b)) is amended— 
(1) by striking "SET-ASIDE FOR ASSISTED HOUSING" and 
inserting "SET-ASIDES"; and 
(2) by inserting after the period at the end the following 
new sentence: "Notwithstanding any other provision of law, 
of any amounts appropriated for drug elimination grants under 
this chapter for fiscal years 1993 and 1994, not more than 
6.25 percent shall be available for grants for federally assisted 
low-income housing and 5.0 percent shall be available for public 
housing youth sports program grants under section 520 of 
the Cranston-Gonzalez National Affordable Housing Act.". 
(c) DRUG-RELATED ACTIYITY IN OTHER PHA-OWNED HOUSING.— 
Section 5124 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11903) 
is amended— 
(1) by inserting "(a) PUBLIC AND ASSISTED HOUSING.—" 
before "Grants"; and 
(2) by adding at the end the following new subsection: 
"(b) OTHER PHA-OWNED HOUSING.—Notwithstanding any other 
provision of this chapter, grants under this chapter may be used 
to eliminate drug-related crime in housing owned by public housing 
agencies that is not public housing assisted under the United States 
Housing Act of 1937 and is not otherwise federally assisted, for 
the activities described in paragraphs (1) through (7) of subsection 
(a), but only if— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3719 
"(1) the housing is located in a high intensity drug traffick-
ing area designated pursuant to section 1005 of this Act; and 
"(2) the pubUc housing agency owning the housing dem-
onstrates, to the satisfaction of the Secretary, that drug-related 
activity at the housing has a detrimental effect on or about 
the real property comprising any public or other federally 
assisted low-income housing.". 
(d) ELIGIBILITY OF PUBLIC HOUSING RESIDENT MANAGEMENT 
CORPORATIONS.—Chapter 2 of subtitle C of title 5 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.) is amended— 
(1) in section 5123, by inserting after "(including Indian 
Housing Authorities)" the following: ", public housing resident 
management corporations that are principally managing, as 
determined by the Secretary, public housing projects owned 
by public housing agencies,"; 
(2) in paragraph (7) of section 5124(a) (as so designated 
by subsection (c) of this section), by inserting after "(7)" the 
following: "where a public housing agency receives a grant,"; 
and 
(3) in the first sentence of section 5125(a), by inserting 
after "public housing agency" the following: ", a public housing 
resident management corporation,". 
(e) PUBLICATION OF REGULATIONS.—^Not later than 30 days 
after the date of the enactment of this Act, the Secretary shall 
publish such final regulations as may be necessary to implement 
section 5130(b) of the Public and Assisted Housing Drug Elimination 
Act of 1990 (42 U.S.C. 11909(a)). 
SEC. 162. HOUSING COUNSELING. 
(a) 
COUNSELING SERVICES.—The first sentence of section 
106(aX3) of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(a)(3)) is amended by striking "except that" and all 
that follows through the period and inserting "except that for such 
purposes there are authorized to be appropriated $6,025,000 for 
fiscal year 1993 and $6,278,050 for fiscal year 1994. Of the amounts 
appropriated for each of fiscal years 1993 and 1994, up to $500,000 
shall be available for use for counseling and other activities in 
connection with the demonstration program under section 152 of 
the Housing and Community Development Act of 1992.". 
(b) EMERGENCY HOMEOWNERSHIP COUNSELING.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—^The first sentence 
of section 106(c)(8) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(cX8)) is amended to read as 
follows: 'There are authorized to be appropriated to carry out 
this section $7,000,000 for fiscal year 1993 and $7,294,000 
for fiscal year 1994, of which amounts $1,000,000 shall be 
available in each such fiscal year to carry out paragraph 
(5XD).". 
(2) EXTENSION OF PROGRAM.—Section 106(cX9) of the Hous-
ing and Urban Development Act of 1968 (12 U.S.C. 1701x(cX9)) 
is amended by striking "September 30, 1992" and inserting 
"September 30,1994". 
(3) AVAILABILITT.—Section 106(cX3XA) of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701x(cX3XA)) is 
amended— 
(A) in clause (i), by striking "and" at the end; and 
(B) by adding at the end the following new clause: 
42 u s e 11902. 
42 u s e 11903. 
42 u s e 11904. 
42 u s e 11909 
note. 
106 STAT. 3720 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(iii) have a high incidence of mortgages involving 
principal obligations (including such initial service 
charges, appraisal, inspection, and other fees as the 
Secretary shall approve) in excess of 97 percent of 
the appraised value of the properties that are insured 
pursuant to section 203 of the National Housing Act; 
and". 
(4) ELIGIBILITY.—Section 106(cX4) of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701x(cX4)) is 
amended by adding at the end the following new flush sentence: 
"An applicant for a mortgage shall be eligible for homeowner-
ship counseling under this subsection if the applicant is a 
first-time homebuyer who meets the requirements of section 
303(b)(1) of the Cranston-Gonzalez National Affordable Housing 
Act and the mortgage involves a principal obligation (including 
such initial service charges, appraisal, inspection, and other 
fees as the Secretary shall approve) in excess of 97 percent 
of the appraised value of the property and is to be insured 
pursuant to section 203 of the National Housing Act.". 
(5) NOTIFICATION OF AVAILABILITY.—Section 106(cX5XA) of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(c)(5)(A)) is amended by striking subparagraph (A) and 
inserting the following new subparagraph: 
"(A) NOTIFICATION OF AVAILABILITY OF HOMEOWNERSHIP 
COUNSELING.— 
"(i) 
REQUIREMENT.—Except 
as 
provided 
in 
subparagraph (C), the creditor of a loan (or proposed 
creditor) shall provide notice under clause (ii) to (I) 
any eligible homeowner who fails to pay any amoiuit 
by the date the amount is due under a home loan, 
and (II) any applicant for a mortgage described in 
paragraph (4). 
"(ii) CONTENT.—^Notification under this subpara-
graph shall— 
"(I) 
notify 
the 
homeowner 
or 
mortgage 
applicant of the availability of any homeownership 
counseling offered by the creditor (or proposed 
creditor); 
"(II) if provided to an eligible mortgage 
applicant, state that completion of a counseling 
program is required for insurance pursuant to sec-
tion 203 of the National Housing Act; and 
"(III) notify the homeowner or mortgage 
applicant of the availability of homeownership 
counseling provided by nonprofit organizations 
approved by the Secretary and experienced in the 
provision of homeownership coimseling, or provide 
the 
toll-free 
telephone 
number 
described 
in 
subparagraph (D)(i).". 
(6) ANNUAL UPDATE OF LIST OF COUNSELING ORGANIZATIONS 
FOR TOLL-FREE NUMBER.—The matter preceding subclause (I) 
in section 106(c)(5)(D)(i) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(cX5XD)(i)) is amended by inserting 
", which shall be updated annually," after "organizations". 
(c) PREPURCHASE AND FORECLOSURE-PREVENTION COUNSELING 
DEMONSTRATION.—Section 106(dX12) of the Housing and Urban 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3721 
Development Act of 1968 (12 U.S.C. 1701x(dX12)) is amended to 
read as follows: 
"(12) AuTHORiz.\TiON OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this subsection 
$365,000 for fiscal year 1993 and $380,330 for fiscal year 1994.". 
(d) ELIGIBILITY FOR COUNSELING ASSISTANCE UNDER HOUSING 
AND URBAN DEVELOPMENT ACT OF 1968 AND CERTIFICATION AND 
TRAINING PROGRAM.—Section 106 of the Housing and Urban Devel-
opment Act of 1968 (12 U.S.C. ITOlx) is amended by adding at 
the end the following new subsections: 
"(e) CERTIFICATION.— 
"(1) REQUIREMENT FOR ASSISTANCE.—An organization may 
not receive assistance for counseling activities under subsection 
(a)(l)(iii), (a)(2), (c), or (d), unless the organization provides 
such counseling, to the extent practicable, by individuals who 
have been certified by the Secretary under this subsection 
as competent to provide such counseling. 
"(2) STANDARDS AND EXAMINATION.—The Secretary shall, Regulations. 
by regulation, establish standards and procedures for testing 
and certifying counselors. Such standards and procedures shall 
require for certification that the individual shall demonstrate, 
by written examination (as provided under subsection (fX4)), 
competence to provide counseling in each of the following areas: 
"(A) Financial management. 
"(B) Property maintenance. 
"(C) Responsibilities of homeownership and tenancy. 
"(D) Fair housing laws and requirements. 
"(E) Housing affordability. 
"(F) Avoidance of, and responses to, rental and mort-
gage delinquency and avoidance of eviction and mortgage 
default. 
"(3) ENCOURAGEMENT.—The Secretary shall encourage 
organizations engaged in providing homeownership and rental 
counseling that do not receive assistance under this section 
to employ individuals to provide such counseling who are cer-
tified under this subsection or meet the certification standards 
established under this subsection. 
"(0 HOMEOWNERSHIP AND RENTAL COUNSELOR TRAINING AND 
CERTIFICATION PROGRAMS.— 
"(1) ESTABLISHMENT.—^To the extent amounts are provided 
in appropriations Acts under paragraph (7), the Secretary shall 
contract with an appropriate entity (which may be a nonprofit 
organization) to carry out a program under this subsection 
to train individuals to provide homeownership and rental coun-
seling and to administer the examination under subsection 
(e)(2) and certify individuals under such subsection. 
"(2) ELIGIBILITY .AND SELECTION.— 
"(A) ELIGIBILITY.—To be eligible to provide the training 
and certification program under this subsection, an entity 
shall have demonstrated experience in training homeowner-
ship and rental counselors. 
"(B) SELECTION.—The Secretary shall provide for enti-
ties meeting the requirements of subparagraph (A) to 
submit applications to provide the training and certification 
program under this subsection. The Secretary shall select 
an application based on the ability of the entity to— 
106 STAT. 3722 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(i) establish the program as soon as possible on 
a national basis, but not later than the date under 
paragraph (6); 
^ii) minimize the costs involved in establishing 
the pro-am; and 
"(iii) effectively and efficiently carry out the pro-
gram. 
"(3) TRAINING.—^The Secretary shall require that training 
of coimselors imder the program imder this subsection be 
designed and coordinated to prepare individuals for successfid 
completion of the examination for certification under subsection 
(eX2). The Secretary, in consultation with the entity selected 
imder paragraph (2)(B), shall establish the curriculum and 
standards for training counselors iinder the program. 
"(4) CERTIFICATION.—^The entity selected imder paragraph 
(2XB) shall administer the examination under subsection (eX2) 
and, on behalf of the Secretanr, certify individuals successfiillv 
completing the examination. Tne Secretory, in consultotion with 
such entity, shall estoblish the content and format of the 
examination. 
"(5) FEES.—Subiect to the approval of the Secretory, the 
entity selected under paragrapn (2XB) may estoblish and 
impose reasonable fees for participation in the training provided 
under the program and for examination and certification under 
subsection (eX2), in an amount sufficient to cover any costo 
of such activities not covered with amounte provided under 
paragraph (7). 
^(6) TIMING.—The entity selectod under paragraph (2XB) 
to carry out the training and certification program shall estob-
lish the program as soon as possible after such selection, and 
shall make training and certification available under the pro-
gram on a national basis not later than the expiration of 
the 1-year period beginning upon such selection. 
"(7) 
AUTHORIZATION 
OF 
APPROPRIATIONS.—^There 
are 
authorized to be appropriatod to carry out this subsection 
$2,000,000 for fiscalyear 1993 and $2,084,000 for 1994.". 
42 use I70ix 
(e) REGULATIONS.—The Secretory of Housing and Urban Devel-
"°*®- 
opment shall issue any regulations necessary to carry out the 
amendmente made by subsection (d), not lator than the expiration 
of the 6-month period beginning on the dato of the enactment 
of this Act. 
SEC. 163. USE OF FUNDS RECAPTURED FROM REFINANCING STATE 
AND LOCAL FINANCE PROJECTS. 
IN GENERAL.—Section 1012 of the Stowart B. McKinney Home-
less Assistance Amendmente Act of 1988 (42 U.S.C. 1437f noto) 
is amended to read as follows: 
"SEC. 1012. USE OF FUNDS RECAPTURED FROM REFINANCING STATE 
AND LOCAL FINANCE PROJECTS. 
"(a) DEFINITION OF QUAUFIED PROJECT.—For purposes of this 
section, the torm'qualified project'means any Stoto financed project 
or local government or local housing agency financed project, that— 
"(1) was— 
"(A) provided a financial adjustment factor under sec-
tion 8 of the United Stotes Housing Act of 1937; or 
"(B) constructed or substontially rehabilitoted pursu-
ant to assistonce provided under a contract under section 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3723 
8(bX2) of the United States Housing Act of 1937 (as in 
effect on September 30, 1983) entered into during any 
of calendar years 1979 through 1984; and 
"(2) is being refinanced. 
"(b) AVAILABILITY OF FUNDS.—The Secretary shall make avail-
able to the State housing finance agency in me State in which 
a qualified project is located, or the local government or local 
housing agency initiating the refinancing of uie qualified project, 
as applicable, an amount equal to 50 percent of the amounts recap-
tured 
firom 
the project (aii determined oy the Secretary on a project-
by-project basis). Notwithstanding any other provision of law, such 
amounts shall be used only for provimng decent, safe, and sanitary 
housing affordable for very low-income families and persons. 
"(c) APPUCABILTTY AND BUDGET COMPLIANCE.— 
"(1) 
RETROACTIVITY.—^This 
section 
shall 
apply 
to 
refinancings of projects for which settlement occurred or occurs 
before, on, or alter the date of the enactment of the Housing 
and Community Development Act of 1992, subject to the provi-
sions of paragraph (2). 
"(2) BUDGET COMPLIANCE.—This section shall apply only 
to the extent or in such amounts as are provided in appropria-
tion Acts.". 
SEC. 164. HOPE FOR YOUTH. 
Title IV of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 1437aaa note et seq.) is amended by adding at 
the end the following new subtitle: 
"Subtitle D—HOPE for Youth: Youthbuild D
i
s
a
d
v
a
n
t
a
g
e
d 
'^EC. 451. STATEMENT OF PURPOSE. 
42 USC 12899. 
I t is the purpose of this subtitle— 
"(1) to expand the supply of permanent affordable housing 
for homeless individuals and members of low- and very low-
income families by utilizing the energies and talents of economi-
cally disadvantaged young adults; 
"(2) to provide economically disadvantaged young adults 
with opportunities for meaningful work and service to their 
communities in helping to meet t^e housing needs of homeless 
individuals and members of low- and very low-income families; 
"(3) to enable economically disadvantaged young adults 
to obtain the education and employment skills necessary to 
achieve economic self-sufficiency; and 
"(4) to foster the development of leadership skills and 
commitment to community development among young adults 
in low-income communities. 
'9EC. 452. PROGRAM AUTHORITY. 
42 USC 12899a. 
*The Secretary may make— 
''(I) planning grants to enable applicants to develop 
Youthbuild programs; and 
'%2) implementation grants to enable applicants to carry 
out Youthbuild programs. 
"SEC. 453. PLANNING GRANTS. 
42 USC 12899b. 
''(a) GRANTS.—^The Secretary is authorized to make planning 
grants to applicants for the purpose of developing Youthbuild pro-
106 STAT. 3724 
PUBLIC LAW 102-550—OCT. 28, 1992 
grams under this subtitle. The amount of a planning grant under 
this section may not exceed $150,000, except that the Secret£uy 
may for good cause approve a grant in a higher amoimt. 
"(b) ELIGIBLE ACTIVITIES.—Planning grants may be used for 
activities to develop Youthbuild programs including— 
"(1) studies of the feasibility of a Youthbuild program; 
"(2) establishment of consortia between youth training and 
education programs and housing owners or developers, includ-
ing any organizations specified in section 457(2), which will 
participate in the Youthbuild program; 
"(3) identification and selection of a site for the Youthbuild 
program; 
"(4) preliminary architectural and engineering work for 
the Youthbuild program; 
"(5) identification and training of staff for the Youthbuild 
program; 
"(6) planning for education, job training, and other services 
that will be provided as part of the Youthbuild program; 
"(7) other planning, training, or technical assistance nec-
essary in advance of commencing the Youthbuild program; and 
"(8) preparation of an application for an implementation 
grant under this subtitle. 
"(c) APPLICATION.— 
"(1) FORM AND PROCEDURES.—^An application for a planning 
grant shall be submitted by an applicant in such form and 
in accordance with such procedures as the Secretary shall 
establish. 
"(2) MINIMUM REQUIREMENTS.—The Secretary shall require 
that an application contain at a minimimi— 
"(A) a request for a planning grant, specifying the 
activities proposed to be carried out, the schedule for 
completing the activities, the personnel necessary to com-
plete the activities, and the amount of the grant requested; 
"(B) a description of the applicant £md a statement 
of its qualifications, 
including a description of the 
applicant's past experience with housing rehabilitation or 
construction and with youth and youth education and 
employment training programs, and its relationship with 
local imions and apprenticeship programs, and other 
community groups; 
"(C) identification and description of potential sites 
for the program and the construction or rehabilitation 
activities that would be undertaken at such sites; potential 
methods for identifying and recruiting youth participants; 
potential educational and job training activities, work 
opportunities and other services for participants; and poten-
ti£U coordination with other Federal, State, and local hous-
ing and youth education and employment training activities 
including activities conducted by Indian tribes; 
"(D) a certification by the public official responsible 
for submitting the comprehensive housing affordability 
strategy under section 105 of the Cranston-Gonzalez 
National Affordable Housing Act that the proposed activi-
ties are consistent with the approved housing strategy of 
the State or unit of general local government within which 
the project is located; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3725 
"(E) a certification that the applicant will comply with 
the requirements of the Fair Housing Act, title VI of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the Age Discrimination Act of 1975, and 
will affirmatively further fair housing. 
"(d) SELECTION CRITERIA.—^The Secretan^ shall, by regulation, 
establish selection criteria for a national competition for assistance 
under this section, which shall include— 
"(1) the qualifications or potential capabilities of the 
applicant; 
"(2) the potential of the appUcant for developing a success-
ful and affordable Youthbuild program; 
"(3) the need for the prospective program, as determined 
by the degree of economic distress— 
"(A) of the community from which participants would 
be recruited (such as poverty, youth unemplojrment, and 
number of individuals who have dropped out of high school); 
and 
"(B) of the community in which the housing proposed 
to be constructed or rehabilitated would be located (such 
as incidence of homelessness, shortage of affordable hous-
ing, and poverty); and 
"(4) such other factors that the Secretary shall require 
that (in the determination of the Secretary) are appropriate 
for purposes of carr^dng out the program established by this 
subtitle in an effective and efilcient manner. 
'^EC. 4S4. mPLEMENTATION GRANTS. 
"(a) GRANTS.—^The Secretary is authorized to make implementa-
tion grants to applicants for the purpose of carrying out Youthbuild 
programs approved under this subtitle. 
"(b) ELIGIBLE ACTIVITIES.—Implementation grants may be used 
to carry out Youthbuild programs, including the following activities: 
"(1) Architectural and engineering work. 
"(2) Acquisition, rehabilitation, acquisition and rehabilita-
tion, or construction of housing and related facilities to be 
used for the piuposes of providing homeownership iinder sub-
title B and subtitle C of this title, residential housing for 
homeless individuals, and low- and very low-income families, 
or transitional housing for persons who are homeless, have 
disabilities, are ill, are deinstitutionaUzed, or have other special 
needs. 
"(3) Administrative costs of the applicant, which may not 
exceed 15 percent of the amount of assistance provided under 
this section, or such higher percentage as the l^cretary deter-
mines is necessary to support capacity development by a private 
nonprofit organization. 
"(4) Education and job training services and activities 
including— 
"(A) work experience and skills training, coordinated, 
to the maximum extent feasible, with preapprenticeship 
and apprenticeship programs, in the construction and 
rehabilitation activities described in subsection (bX2); 
"(B) services and activities designed to meet the edu-
cational needs of participants, including— 
"(i) basic skills instruction andf remedial education; 
Regulations. 
42 use 12899c. 
106 STAT. 3726 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(ii) bilingual education for individuals with lim-
ited-English proficiency; 
''(iii) secondary education services and activities 
designed to lead to the attainment of a high school 
diploma or its equivalent; and 
"(iv) coimseling and assistance in attaining post-
secondary education and required financial aid; 
"(C) counseling services and related activities; 
"(D) activities designed to develop employment and 
leadership skills, including support for youth councils; and 
"(E) support services and need-based stipends nec-
essary to enable individuals to participate in the program 
and, for a period not to exceed 12 months after completion 
of training, to assist participants through support services 
in retaining emplo3anent. 
"(5) Wage stipends and benefits provided to participants. 
"(6) Funding of operating expenses and 
replacement 
reserves of the property covered by the Youthbuild program. 
"(7) Legal fees. 
"(8) Defrajdng costs for the ongoing training and technical 
assistance needs of the recipient that are related to developing 
and carrying out the Youthbuild program. 
"(c) APPLICATION.— 
"(1) 
FORM 
AND 
PROCEDURE.—An 
appKcation 
for 
an 
implementation grant shall be submitted by an applicant in 
such form and in accordance with such procediu*es as the Sec-
retary shall establish. 
"(2) MINIMUM REQUIREMENTS.—The Secretary shall require 
that an application contain at a minimum— 
(A) a request for an implementation grant, specifying 
the amount of the ^ a n t requested and its proposed uses; 
"(B) a description of the applicant and a statement 
of its qualifications, 
including a description of the 
applicant s past experience with housing rehabilitation or 
construction and with youth and youth education and 
employment training programs, and its relationship with 
local unions and apprenticeship programs, and other 
community groups; 
"(C) a description of the proposed site for the program; 
"(D) a description of the educational and job training 
activities, work opportunities, and other services that will 
be provided to participants; 
"(E) a description of the proposed construction or 
rehabilitation activities to be imdertaken and the antici-
pated schedule for carrying out such activities; 
"(F) a description of the manner in which eligible 
youths will be recruited and selected, including a descrip-
tion of arrangements which will be made with commimity-
based organizations, State and local educational agencies, 
including agencies of Indian tribes, public assistance agen-
cies, the courts of jurisdiction for status £uid youth offend-
ers, shelters for homeless individuals and other agencies 
that serve homeless youth, foster care agencies, and other 
appropriate public and private agencies; 
"(G) a description of the special outreach efforts that 
will be undertaken to recruit eligible young women (includ-
ing young women with dependent children); 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3727 
"(H) a description of how the proposed program will 
be coordinated ^vith other Federal, State, and local activi-
ties and activities conducted by Indian tribes, including 
vocational, adult and bilingual education programs, job 
training provided with funds available under the Job Train-
ing Partnership Act and the Family Support Act of 1988, 
and housing and community development programs, includ-
ing programs that receive assistance luider section 106 
of the Housing and Community Development Act of 1974; 
"(I) assurances that there will be a sufficient number 
of adequately trained supervisory personnel in the program 
who have attained the level of 
journeyman or its equivalent; 
"(J) a description of the applicant's relationship with 
local building trade unions regarding their involvement 
in training, and the relationship of the Youthbuild program 
with established apprenticeship programs; 
"(K) a description of activities that will be undertaken 
to develop the leadership skills of participants; 
"(L) a detailed budget and a description of the system 
of fiscal controls and auditing and accoimtability proce-
dures that will be used to ensure fiscal soundness; 
"(M) a description of the commitments for any addi-
tional resources to be made available to the program from 
the applicant, from recipients of other Federal, State or 
local housing and community development assistance who 
will sponsor any part of the construction, rehabilitation, 
operation and maintenance, or other housing and commu-
nity development activities undertaken as part of the pro-
gram, or from other Federal, State or local activities and 
activities conducted by Indian tribes, including, but not 
limited to, vocational, adult and bilingual education pro-
grams, and job training provided with funds available 
under the Job Training Partnership Act and the Family 
Support Act of 1988; 
"(N) identification and description of the financing pro-
posed for any— 
"(i) rehabilitation; 
"(ii) acquisition of the property; or 
"(iii) construction; 
"(O) identification and description of the entity that 
will operate and manage the property; 
"(P) a certification by the public official responsible 
for submitting the comprehensive housing affordability 
strategy under section 105 of the Cranston-Gronzalez 
National Affordable Housing Act that the proposed activi-
ties are consistent with the approved housing strategy of 
the State or unit of general local government within which 
the project is located; and 
"(Q) a certification that the applicant will comply with 
the requirements of the Fair Housing Act, title Vl of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the Age Discrimination Act of 1975, and 
will affirmatively further fair housing. 
"(d) SELECTION CRITERIA.—The Secretary shall establish selec-
tion criteria for assistance under this section, which shall include— 
"(1) the qualifications or potential capabilities of the 
applicant; 
106 STAT. 3728 
PUBLIC LAW 102-550—OCT. 28, 1992 
''(2) the feasibility of the Youthbuild program; 
''(3) the potential for developing a successful Youthbuild 
program; 
''(4) the need for the prospective project, as determined 
by the degree of economic distress of the community from 
which participants would be recruited (such as poverty, youth 
imemployment, number of individuals who have dropped out 
of high school) and of the community in which the housing 
proposed to be constructed or rehabilitated would be located 
(such as incidence of homelessness, shortage of affordable hous-
ing, poverty); 
"(5) the apparent commitment of the applicant to leadership 
development, education, and training of participants; 
"(6) the inclusion of previously homeless tenants in the 
housing provided; 
"(7) the commitment of other resources to the program 
by the applicant and by recipients of other Federal, State 
or local housing and community development assistance who 
will sponsor any part of the construction, rehabilitation, oper-
ation and maintenance, or other housing and commimity devel-
opment activities imdertaken as part of the program, or by 
other Federal, State or local activities and activities conducted 
by Indian tribes, including, but not limited to, vocational, adult 
and bilingual education programs, and job training provided 
with funds available under the Job Training Partnership Act 
and the Family Support Act of 1988; and 
"(8) such other factors as the Secretary determines to be 
appropriate for purposes of canying out the program estab-
lished by this subtitle in an effective and efficient manner. 
"(e) PRIORITY FOR APPLICANTS WHO OBTAIN HOUSING MONEY 
FROM OTHER SOURCES.—^The Secretary shall give priority in the 
award of grants under this section to applicants to the extent 
that they propose to finance activities described in paragraphs 
(1), (2), and (6) of subsection (b) from funds provided from Federal, 
State, local, or private sources other than assistance imder this 
subtitle. 
"(f) APPROVAL.—^The Secretary shall notify each applicant, not 
later than 4 months after the date of the submission of the applica-
tion, whether the application is approved or not approved. 
"(g) 
COMBINED 
PLANNING 
AND 
IMPLEMENTATION 
GRANT 
APPLICATION PROCEDURE.—^The Secretary shall develop a procedure 
under which an applicant may apply at the same time and in 
a single application for a planning grant and an implementation 
grant, with receipt of the implementation grant conditioned on 
successful completion of the activities funded by the planning grant. 
42 use 12899d. 
«SEC. 455. YOUTHBUILD PROGRAM REQUIREMENTS. 
"(a) RESIDENTIAL RENTAL HOUSING.—Each residential rental 
housing project receiving assistance imder this subtitle shall meet 
the following requirements: 
"(1) OCCUPANCY BY LOW- AND VERY LOW-INCOME FAMIUES.— 
In the project— 
"(A) at least 90 percent of the units shall be occupied, 
or available for occupancy, by individuals and families with 
incomes less than 60 percent of the area median income, 
adjusted for family size; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3729 
"(B) the remaining units shall be occupied, or available 
for occupancy, by low-income families. 
"(2) TENANT PROTECTIONS.— 
"(A) LEASE.—The lease between a tenant and an owner 
of residential rental housing assisted imder this subtitle 
shall be for not less than 1 year, unless otherwise mutually 
agreed to by the tenant and the owner, and shall contain 
such terms and amditions as the Secretary shall determine 
to be appropriate. 
"(B) TERMINATION OF TENANCY.—An owner shall not 
terminate the tenancy or refuse to renew the lease of 
a tenant of residential rental housing assisted under this 
title except for serious or repeated violation of the terms 
and conditions of the lease, for violation of applicable Fed-
eral, State, or local law, or for other good cause. Any 
termination or refusal to renew must be preceded by not 
less than 30 days by the owner's service upon the tenant 
of a written notice specifying the grounds for the action. 
"(C) MAINTENANCE AND REPLACEMENT.—^The owner of 
residential rental housing assisted under this subtitle shall 
maintain the premises in compliance with all applicable 
housing quality standards and local code requirements. 
"(D) TENANT SELECTION.—^The owner of residential 
rental housing assisted under this subtitle shall adopt writ-
ten tenant selection policies and criteria that— 
"(i) are consistent with the purpose of providing 
housing for very low-income and low-income families 
and individuals; 
"(ii) are reasonably related to program eligibility 
and the applicant's ability to perform the obligations 
of the lease; 
"(iii) give reasonable consideration to the housing 
needs of families that would qualify for a preference 
under section 6(cX4XA) of the United States Housing 
Act of 1937; and 
"(iv) provide for (I) the selection of tenants from 
a written waiting list in the chronological order of 
their application, to the extent practicable, and (II) 
for the prompt notification in writing of any rejected 
applicant of the grounds for any rejection. 
"(3) LIMITATION ON RENTAL PAYMENTS.—Tenants in each 
project shall not be required to pay rent in excess of the 
amount provided under section 3(a) of the United States Hous-
ing Act of 1937. 
"(4) TENANT PARTICIPATION PLAN.—For each project owned 
by a nonprofit organization, the organization shall provide a 
plan for and follow a program of tenant participation in 
management decisions. 
"(5) PROHIBITION AGAINST DISCRIMINATION.—A unit in a 
{)roject assisted under this subtitle may not be refused for 
easing to a family holding tenant-based assistance imder sec-
tion 8 of the United States Housing Act of 1937 because 
of the status of the prospective tenant as a holder of such 
assistance. 
"(b) TRANSITIONAL HOUSING.—Each transitional housing project 
receiving assistance under this subtitle shall adhere to the require-
ments regarding service delivery, housing standards, and rent 
106 STAT. 3730 
PUBLIC LAW 102-550—OCT. 28, 1992 
limitations applicable to comparable housing receiving assistance 
under title IV of the Stewart B. McKinney Homeless Assistance 
Act. 
"(c) LIMITATIONS ON PROFITS FOR RENTAL AND TRANSITIONAL 
HOUSING.— 
"(1) MONTHLY RENTAL LIMITATION.—The aggregate monthly 
rental for each eligible project may not exceed the operating 
costs of the project (including debt service, management, ade-
quate reserves, and other operating costs) plus a 6 percent 
return on any equity investment of the project owner. 
"(2) 
PROFIT 
LIMITATIONS ON PARTNERS.^A 
nonprofit 
organization that receives assistance under this subtitle for 
a project shall agree to use any profit received from the oper-
ation, sale, or other disposition of the project for the purpose 
of providing housing for low- and moderate-income families. 
Profit-motivated partners in a nonprofit partnership may 
receive— 
"(A) not more than a 6 percent return on their equity 
investment from project operations; and 
"(B) upon disposition of the project, not more than 
an amount equal to their initial equity investment plus 
a return on that investment equal to the increase in the 
Consumer Price Index for the geographic location of the 
project since the time of the initial investment of such 
partner in the project. 
"(d) 
HOMEOWNERSHIP.—Each homeownership 
project 
that 
receives assistance under this subtitle shall comply with the require-
ments of subtitle B or subtitle C of this title. 
"(e) RESTRICTIONS ON CONVEYANCE.—^The ownership interest 
in a project that receives assistance imder this subtitle may not 
be conveyed imless the instrument of conveyance requires a subse-
quent owner to comply with the same restrictions imposed upon 
the original owner. 
"(f) CONVERSION OF TRANSITIONAL HOUSING.—The Secretary 
may waive the requirements of subsection (b) to permit the conver-
sion of a transitional housing project to a permanent housing project 
only if such housing would meet the requirements for residential 
rental housing specified in this section. 
"(g) PERIOD OF RESTRICTIONS.—^A project that receives assist-
ance under this subtitle shall comply with the requirements of 
this section for the remaining useful life of the property. 
42USC12899e. 
"SEC. 456. ADDITIONAL PROGRAM REQUIREMENTS. 
"(a) ELIGIBLE PARTICIPANTS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
an individual may participate in a Youthbuild program receiv-
ing assistance under this subtitle only if such individual is— 
"(A) 16 to 24 years of age, inclusive; 
"(B) a very low-income individual or a member of a 
very low-income family; and 
"(C) an individual who has dropped out of high school. 
"(2) EXCEPTION FOR INDIVIDUALS NOT MEETING INCOME OR 
EDUCATIONAL NEED REQUIREMENTS.—^Not more than 25 percent 
of the participants in such program may be individuals who 
do not meet the requirements of either paragraphs (IXB) or 
((J), but who have educational needs despite attainment of 
a high school diploma or its equivalent. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3731 
"(3) PARTICIPATION LIMITATION.—Any eligible individual 
selected for full-time participation in a Youtiibuild program 
may be offered full-time participation for a period of not less 
than 6 months and not more than 24 months. 
**(b) MINIMUM TIME DEVOTED TO EDUCATIONAL SERVICES AND 
AcnvrriES.—A Youthbuild program receiving assistance under this 
subtitle shall be structured so that 50 percent of the time spent 
by participants in the program is devoted to educational services 
and activities, such as those specified in subparagraphs (B) through 
(F) of section 454(bX4). 
"(c) AUTHORITY RESTRICTION.—"So provision of this subtitle may 
be construed to authorize any agency, ofi&cer, or employee of the 
United States to exercise any direction, supervision, or control 
over the curriculum, program of instruction, administration, or 
personnel of any educational institution, school, or school system, 
or over the selection of library resources, textbooks, or other printed 
or published instructional materials by any educational institution 
or school system. 
"(d) STATE AND LOCAL STANDARDS.—All educational programs 
and activities supported with funds provided under this subtitle 
shall be consistent with applicable State and local educational 
standards. Standards and procedures with respect to the awarding 
of academic credit and certifying educational attainment in such 
programs shall be consistent with applicable State and local edu-
cational standards. 
"(e) WAGES, LABOR STANDARDS, AND NONDISCRIMINATION.^TO 
the extent consistent with the provisions of this subtitle, sections 
142, 143 and 167 of the Job Training Partnership Act, relating 
to wages and benefits, labor standards, and nondiscrimination, shall 
apply to the programs conducted under this subtitle as if such 
programs were conducted under the Job Training Partnership Act. 
This section may not be construed to prevent a recipient of a 
grant under this subtitle from using funds from non-Federal sources 
to increase wages and benefits under such programs, if appropriate. 
"SEC. 457. DEFINrnONS. 
42 USC 12899f. 
"For purposes of this subtitle: 
"(1) ADJUSTED INCOME.—^The term 'acyusted income' has 
the meaning given the term in section 3(b) of the United 
States Housing Act of 1937. 
"(2) APPLICANT.—^The term 'applicant' means a public or 
private nonprofit agency, including— 
"(A) a community-based organization; 
"(B) an administrative entity designated under section 
103(bXlXB) of the Job Training Partnership Act; 
"(C) a community action agency; 
"(D) a State and local housing development agency; 
"(E) a community development corporation; 
"(F) a State and local youth service and conservation 
corps; and 
"(G) any other entity eligible to provide education and 
employment training under other Federal employment 
training programs. 
"(3) COMMUNITY-BASED ORGANIZATION.—The term 'commu-
nity-based organization' means a private nonprofit organization 
thatr-
106 STAT. 3732 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(A) maintains, through significant representation on 
the organization's governing board or otherwise, account-
ability to low-income community residents and, to the 
extent practicable, low-income beneficiaries of programs 
receiving assistance imder this subtitle; and 
"(B) has a history of serving the local community or 
communities where a program receiving assistance under 
this subtitle is located. 
"(4) HOMELESS INDIVIDUAL.—The term ^homeless individual* 
has the meaning given the term in section 103 of the Stewart 
B. McKinney Homeless Assistance Act. 
"(5) HOUSING DEVELOPMENT AGENCY.—The term *housing 
development agency* means any agency of a State or local 
government, or any private nonprofit organization that is 
engaged in providing housing for homeless or low-income 
families. 
"(6) INCOME.—^The term 'income* has the meaning given 
the term in section 3(b) of the United States Housing Act 
of 1937. 
"(7) INDIAN TRIBE.—The term 'Indian tribe* has the same 
meaning given such term in section 102(aX17) of the Housing 
and 
Community 
Development 
Act 
of 
1974 (42 
U.S.C. 
5302(aX17)). 
"(8) INDIVIDUAL WHO HAS DROPPED OUT OF HIGH SCHOOL.— 
The term 'individual who has dropped out of high school* means 
an individual who is neither attending any school nor subject 
to a compulsory attendance law and who has not received 
a secondary school diploma or a certificate of equivalency for 
such diploma. 
"(9) INSTITUTION OF HIGHER EDUCATION.—The term 'institu-
tion of higher education' has the meaning given the term in 
section 1201(a) of the Higher Education Act of 1965. 
"(10) LIMITED-ENGLISH PROFICIENCY.—The term 'limited-
English proficiency has the meaning given the term in section 
7003 of the Bihngual Education Act. 
"(11) LOW-INCOME FAMILY.—The term low-income famil/ 
has the meaning given the term in section 3(b) of the United 
States Housing Act of 1937. 
"(12) OFFENDER.—^The term 'offender* means any adult or 
juvenile with a record of arrest or conviction for a criminal 
offense. 
"(13) QUALIFIED NONPROFIT AGENCY.—The term 'qualified 
public or private nonprofit agency* means any nonprofit agency 
that has significant prior experience in the operation of projects 
similar to the Youthbuild program authorized under this sub-
title and that has the capacity to provide effective technical 
assistance. 
"(14) RELATED FACILITIES.—^The term 'related facilities' 
includes cafeterias or dining halls, community rooms or build-
ings, appropriate recreation facilities, and other essential serv-
ice facilities. 
"(15) SECRETARY.—^The term 'Secretary* means the Sec-
retary of Housing and Urban Development. 
"(16) STATE.—^The term 'State' means any of the several 
States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, 
the Virgin Islsuids, Guam, American Samoa, the Trust Terri-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3733 
tories of the Pacific Islands, or any other territory or possession 
of the United States. 
"(17) TRANSITIONAL HOUSING.—The term 'transitional hous-
ing* means a project that has as its purpose facilitating the 
movement of homeless individuals and families to independent 
living within a reasonable amount of time. Transitional housing 
includes housing primarily designed to serve deinstitutionalized 
homeless individuals and other nomeless individuals with men-
tal or physical disabilities and homeless families with children. 
"(18) VERY LOW-INCOME FAMILY.—^The term Very low-
income family* has the meaning given the term in section 
3(b) of the United States Housing Act of 1937. 
"(19) YOUTHBUILI) PROGRAM.—The term Touthbuild pro-
gram' means any program that receives assistance under this 
subtitle and provides disadvantaged youth with opportunities 
for employment, education, leadership development, and train-
ing in the construction or rehabilitation of housing for homeless 
individuals and members of low- and very low-income families. 
'^EC. 4S8. MANAGEMENT AND TECHNICAL ASSISTANCE. 
42 USC 12899g. 
"(a) SECRETARY ASSISTANCE.—The Secretary may enter into 
contracts with a qualified public or private nonprofit agency to 
provide assistance to the Secretary in the management, supervision, 
and coordination of Youthbuild programs receiving assistance under 
this subtitle. 
"(b) SPONSOR ASSISTANCE.—The Secretary shall enter into con- Contracts. 
tracts with a qualified public or private nonprofit agency to provide 
appropriate training, information, and technical assistance to spon-
sors of programs assisted under this subtitle. 
"(c) APPLICATION PREPARATION.—Technical assistance may also 
be provided in the development of program proposals and the 
preparation of applications for assistance under this subtitle to 
eligible entities which intend or desire to submit such applications. 
Community-based organizations shall be given first priority in the 
provision of such assistance. 
"(d) RESERVATION OF 1<\JNDS.—In each fiscal year, the Secretary 
shall reserve 5 percent of the amounts available for activities luider 
this subtitle pursuant to section 402 to carry out subsections (b) 
and (c) of this section. 
•«EC. 459. CONTRACTS. 
42 USC 12899h. 
"Each Youthbuild program shall carry out the services and 
activities under this subtitle directly or through arrangements or 
imder contracts with administrative entities designated under sec-
tion 103(bXlXB) of the Job Training Partnership Act, with State 
and local educational agencies, institutions of higher education. 
State and local housing development agencies, or with other public 
agencies, 
including 
agencies of Indian 
tribes, and private 
organizations. 
"SEC 460. REGULATIONS. 
42 USC 128991. 
"The Secretary shall issue any regulations necessary to carry 
out this subtitle.". 
SEC 165. EXTENSION FOR COMMENCEMENT OF CERTAIN CONSTRUC-
TION. 
Notwithstending section 17(dX4XG) of the United States Hous-
ing Act of 1937, the Secretary of Housing and Urban Development 
106 STAT. 3734 
PUBLIC LAW 102-550—OCT. 28, 1992 
shall extend the deadline for commencement of construction until 
September 30, 1993, for the application for assistance under such 
section 17 for HDG project number IL004HG702, and upon 
commencement of construction shall execute the grant agreement 
for such project as currently approved or amended. 
Subtitle E—^Homeownership Programs 
SEC. 181. HOPE PROGRAMS. 
(a) 
AUTHORIZATION OF 
APPROPRIATIONS AND TECHNICAL 
ASSISTANCE.— 
(1) IN GENERAL.—Title IV of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12871 et seq.) 
is amended by inserting after section 401 the following new 
section: 
42 use 12870. 
"SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 
"(a) FISCAL YEAR 1993.—There are authorized to be appro-
priated for grants under this title $855,000,000 for fiscal year 
1993, of which— 
"(1) $285,000,000 shall be available for activities authorized 
under title III of the United States Housing Act of 1937, of 
which up to $4,500,000 of any amounts appropriated may be 
made available for technical assistance to potential applicants, 
applicants and recipients of assistance under this title; 
"(2) $285,000,000 shall be available for activities authorized 
under subtitle B, of which up to $3,250,000 of any amounts 
appropriated may be made available for technical assistance 
to potential applicants, applicants and recipients of assistance 
under this subtitle; and 
"(3) $285,000,000 shall be available for activities under 
subtitle C, of which up to $2,250,000 of any amounts appro-
priated may be made available for technical assistance to poten-
tial appUcants, applicants and recipients of assistance under 
this subtitle. 
Of the amounts appropriated pursuant to this subsection, up to 
$40,000,000, but not less than 5 percent, shall be available for 
activities authorized under subtitle D. Any amount appropriated 
pursucuit to this subsection shall remain available until expended. 
"(b) FISCAL YEAR 1994.—There are authorized to be appro-
priated for grants under this title $883,641,000 for fiscal year 
1994, of which— 
"(1) $294,547,000 shall be available for activities authorized 
under title III of the United States Housing Act of 1937, up 
to $4,500,000 of which may be made available for technic^d 
assistance to potential applicants, applicants and recipients 
of assistance under this title; 
"(2) $294,547,000 shall be available for activities authorized 
under subtitle B, up to $3,250,000 of which may be made 
available for technical assistance to potential applicants, 
applicants and recipients of assistance under this subtitle; and 
"(3) $294,547,000 shall be available for activities imder 
subtitle C, up to $2,250,000 of which may be made available 
for technical assistance to potential applicants, applicants and 
recipients of assistance under this subtitle. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3735 
Of the amounts appropriated pursuant to this subsection, up to 
$41,680,000, but not less than 5 percent, shall be available for 
activities authorized uiider subtitle D. Any amount appropriated 
pursuant to this subsection shall remain available until expended. 
"(c) TECHNICAL ASSISTANCE.—^Technical assistance made avail-
able under title III of the United States Housing Act of 1937 
or subtitle B or subtitle C of this title may include, but shall 
not be limited to, training, clearinghouse services, the collection, 
processing and dissemimation of program information useful for 
local and national program management, and provision of seed 
money. Such technical assistance may be made available directly, 
or indirectly under contracts and grants, as appropriate. In any 
fiscal year, no single applicant, potential applicant, or recipient 
under title III of the United States Housing Act of 1937, or subtitle 
B or subtitle C of this title may receive technical assistance in 
an amount exceeding 20 percent of the total amount made available 
for technicsd assistimce! under such title or subtitle for the fiscal 
year.**. 
(2) CONFORMING AMENDMENTS.— 
(A) HOPE I,.—Section 301 of the United States Housing 
Act of 1937 (42 U.S.C. 1437aaa(c)) is amended by striking 
subsection (c). 
(B) HOPE n AND HOPE IIL—Title IV of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12871 
et seq.) is amended— 
(i) by striking subsection (c) of section 421; and 
(ii) in section 441— 
(I) by striking "(a) IN GENERAL.—**; and 
(II) by striking subsection (b). 
(3) GAO AUDrr OF TECHNICAL ASSISTANCE CONTRACTS.— 
The Comptroller General of the United States shall conduct 
an audit of all of the technical assistance contracts awarded 
for fiscal years 1993 and 1994 pursiiant to section 402 of 
the Cranston-Cjonzalez National Affordable Housing Act. The Reports. 
Comptroller (general shall submit a report to the Congress 
describing the results of such audit not later than September 
30,1994. 
(b) HOPE I MATCHING FUNDING.—Section 303(c) of the United 
States Housing Act of 1937 (42 U.S.C. 1437aaa-2(c)(l)) is 
amended— 
(1) in paragraph (1), by inserting £ift«r "expenses** the fol-
lowing: "and replacement housing"; and 
(2) by inserting at the end the following new paragraph: 
"(3) REDUCTION OF REQUIREMENT.—The Secretary shall 
reduce the matching requirement for homeownership programs 
carried out imder this section in accordance with the formida 
established under section 22(Xd) of the Cranston-Gonzalez 
National Affordable Housing Act.**. 
(c) GRANT SELECTION CRITERIA FOR HOPE I.—Section 303(eX8) 
of the United States Housing Act of 1937 (42 U.S.C. 1437aaa-
2(e)(8)) is amended— 
(1) by striking "of the tjT)e assisted under this title**; and 
(2) by striking "appreciabijr**. 
(d) EUGIBILITY OF MUTUAL HOUSING ASSOCIATIONS FOR HOPE 
II GRANTS.—Section 426(1) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12876(1)) is amended by adding 
at the end the following new subparagraph: 
42 u s e 12871. 
42 use 12891. 
42 use 12870 
note. 
59-194 0-93 
4 : QL 3 (Pt. 5) 
106 STAT. 3736 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(G) A mutual housing association.". 
(e) EuGiBLE PROPERTY UNDER HOPE IL—Section 426(3XD) 
of the Cranston-Gonzalez National Affordable Housing ^^t (42 
U.S.C. 12876(3XD)) is amended by inserting before the period at 
the end the following "or an agency or instrumentality thereof^. 
(f) PREFERENCE FOR ACQUISITION OF VACANT UNITS UNDER 
HOPE III.—Section 444 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12894) is amended by adding at the 
end the following new subsection: 
"(f) PREFERENCE FOR ACQUISITION OF VACANT UNITS.—Each 
homeownership program under this subtitle shall provide that, 
in making vacant units in eUgible properties available for acquisi-
tion by ehgible families, preference shall be given to eligible families 
who reside in public or Indian housing.". 
(g) TRANSFER OF SCATTERED SITE PUBUC AND INDIAN HOUSING 
To HOPE PROGRAMS.— 
(1) HOPE L— 
(A) IN GENERAL.—Sections 303(bX2) and 304(d) of the 
United States Housing Act of 1937 (42 U.S.C. 1437aaa-
2(bX2) and 42 U.S.C. 1437aaa-3(d)) are each amended 
by striking "(not including scattered site single family hous-
ing of a public housing agency)". 
42 use 
(B) OPERATING SUBSIDIES.—Section 303(bX9) of the 
l437aaa-2. 
Cranston-Cjronzalez National Affordable Housinjg Act (42 
U.S.C. 1437aaa-2(bX9)) is amended Inr inserting before 
the period at the end the following: , and except that 
implementation grants may not be used under this para-
graph to fund operating expenses for scattered site public 
Housing acquirea under a homeownership program". 
(2) HOPE HI.—Section 446(4) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12896(4)) is 
amended by striking "(including scattered site single family 
properties, and" and inserting "(excluding public or Indian 
nousing under the United States Housing Act of 1937 and 
including". 
(h) EUGIBILITY OF OTHER FEDERAL PROPERTY F
O
R HOPE PRO-
GRAMS.—-Sections 426(3XD) and 446(4) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12876(3XD) and 42 
U.S.C. 12896(4)) are each amended by inserting after "Corporation," 
the following: '%he Federal Deposit Insurance Corporation, the Sec-
retary of Defense, the Secretary of Transportation, the General 
Services Administration, any other Federal agency,". 
SEC. 182. NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION. 
(a) EXTENSION OF TRUST.—Section 310 of the Cranston-Gron-
zalez National Affordable Housing Act (42 U.S.C. 12859) is amended 
by striking "on September 30, 1993" and inserting "September 
30,1994". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 308 
of 
the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12857) is amended to read as follows: 
••SEC. 308. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated for assistance pay-
ments under this subtitle $520,665,600 for fiscal year 1993 and 
$542,533,555 for fiscal year 1994, of which such sums as may 
be necessary shall be available in each such fiscal year for use 
under section 303(e). Any amount appropriated under this section 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3737 
shall be deposited in the Fund and shall remain available until 
expended, subject to the provisions of section 311.". 
(c) USE OF TRUST AMOUNTS IN CONNECTION WITH MORTGAGE 
REVENUE BONDS.— 
(1) IN GENERAL.—Section 303 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12852) is amended 
by adding at the end the following new subsection: 
"(e) ASSISTANCE IN CONNECTION WITH HOUSING FINANCED WITH 
MORTGAGE REVENUE BONDS.— 
"(1) AUTHORTTf.—^The Trust shall provide assistance for 
first-time homebuyers in the form of interest rate buydowns 
and downpayment assistance under this subsection. Such 
assistance shall be: available only with respect to mortgages 
for the purchase of residences (A) financed with the proceeds 
of a qualified mortg;age bond (as such term is defined in section 
143 of the Internal Revenue Code of 1986), or (B) for which 
a credit is allowable under section 25 of such Code. 
"(2) ELIGIBILITY.—^To be eligible for assistance imder this 
subsection, homebuyers and mortgages shall also meet the 
requirements under subsection (b) of this section, except that— 
"(A) the certification under subsection (bX3) shall not 
be required for assistance under this subsection; 
"(B) the provisions of subsection (bX2) shall not apply 
to assistance under this section; and 
"(C) the aggregate income of the homebuyer and the 
members of the family of the homebuyer residing with 
the homebuyer, for the 12-month period preceding the date 
of the application of the homebuyer for assistance under 
this subsection, shall not exceed 80 percent of the median 
income for a family of 4 persons (as adjusted for family 
size) in the applicable metropolitan statistical area. 
"(3) LIMITATION OF ASSISTANCE.—Notwithstanding sub-
section (a), assistance payments for first-time homebuyers 
under this subsection shall be provided in the following 
manners: 
"(A) INTEREST RATE BUYDOWNS.—^Assistance payments 
to decrease the rate of interest payable on the mortgages 
by the homebuyers, in an amount not exceeding— 
"(i) in the first year of the mortgage, 2.0 percent 
of the total principal obligation of the mortgage; 
"(ii) in the second year of the mortgage, 1.5 percent 
of the total principal obligation of the mortgage; 
"(iii) in the third year of the mortgage, 1.0 percent 
of the total principal obligation of the mortgage; and 
"(iv) in the fourth year of the mortgage, 0.5 percent 
of the total principal obligation of the mortgage. 
"(B) DOWNPAYMENT ASSISTANCE.—Assistance payments 
to provide amounts for downpayments on mortgages by 
the homebuyers, in an amount not exceeding 2.5 percent 
of the principal obligation of the mortgage. 
"(3) AVAILABILITY.—^The Trust may make assistance pay-
ments under subparagraphs (A) and (B) of paragraph (3) with 
respect to a single mortgage of a homebuyer. . 
(2) CONFORMING AMENDMENT.—Section 303(a) of the Cran-
ston-(jk)nzalez National Affordable Housing Act (42 U.S.C. 
12852(a)) is amended by adding at the end the following new 
paragraph: 
106 STAT. 3738 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(3) ASSISTANCE IN CONNECTION WITH MORTGAGE REVENUE 
BONDS FINANCING.—Interest rate buydowns and downpayment 
assistance in the manner provided in subsection (e).". 
(d) EuGiBiUTY O
F MANUFACTURED HOME OWNERS.—Section 
303(bXl) of the Cranston-Gronzalez National Affordable Housing 
Act (42 U.S.C. 12852(bXl)) is amended— 
(1) in subparagraph (B), by striking "or" at the end; 
(2) in subparagraph (C), by striking the period at the 
end and inserting "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(D) meets the requirements of subparagraph (A), (B), 
or (C), except for owning, as a principal residence, a dwell-
ing unit whose structure is— 
"(i) not permanently siffixed to a permanent 
foundation in accordance with local or other applicable 
regulations; or 
"(ii) not in compliance with State, local, or model 
building codes, or other applicable codes, and cannot 
be brought into compliance with such codes for less 
than the cost of constructing a permanent structure.". 
(e) SECOND MORTGAGE ASSISTANCE.—Section 303(a) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12852(a)) is amended by adding after paragraph (3) (as added 
by subsection (cX3) of tins section) the following new paragraphs: 
"(4) SECOND MORTGAGE ASSISTANCE.—^Assistance payments 
to provide loans (secured by second mortgages) with deferred 
payment of interest and principal; and 
"(5) CAPITALIZATION OF REVOLVING LOAN FUNDS.—Grants 
to public organizations or agencies to establish revolving loan 
funds to provide homeownership assistance to eligible first-
time homebuyers consistent with the requirements of this sub-
title. Such grants shall be matched by an equal amount of 
local investment in such revolving loan fimds. Any proceeds 
or repajnnents 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.". 
SEC. 183. NEHEMIAH HOUSING OPPORTUNITY GRANTS. 
(a) HOMEOWNER INCENTIVE.—Section 604 of the Housing and 
12 use 1715/ 
Community Development Act of 1987 (12 U.S.C. 17151 note) is 
"ote. 
amended— 
(1) in subsection (b)(4), by inserting before the period the 
following: ", subject to the provisions of subsection (c)"; and 
(2) by adding at the end the following new subsection: 
"(c) HOMEOWNER INCENTIVE.—^The nonprofit organization may 
provide that, upon the sale or transfer of a property purchased 
with a loan made under this section, an^ proceeds remaining after 
repaying the first mortgage shall be distributed in the following 
order: 
"(1) DOWNPAYMENT.—The amount of the downpayment 
made by the seller or transferor upon the purchase of the 
property shall be paid to the seller or transferor. 
"(2) LOAN AND PROFIT.—Any amounts remaining after dis-
tribution under paragraph (1) shall be shared equally between 
the Secretary and the seller or transferor, but only to the 
extent that the Secretary recovers an amount equal to the 
amount of the loan made under this section. If such remaining 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3739 
amounts are insufficient for the Secretary to recover the full 
amount of the loan made under this section, the second mort-
gage held by the Secretary under subsection (bXD shaU be 
cancelled. 
"(3) PROFIT.—Any amounts remaining after distribution 
under paragraphs (1) and (2) shall be paid to the seller or 
transferor.". 
(b) CONFORMING AMENDMENTS.—Section 606(eX5) of the Hous-
ing and Community Development Act of 1987 (12 U.S.C. 17151 
note) is amended— 
12 USC 1715/ 
(1) by inserting "subject to the provisions of section 604(c),** ^°^-
after the comma; and 
(2) by striking "(in which case** and all that follows through 
"repaid)**. 
(c) APPLICABILITY.—The amendments made by this section shall 
12 use 1715/ 
apply to any loan made imder section 604 of the Housing and "
°
*
®
-
Community Development Act of 1987 after July 1,1990. 
SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING. 
12 USC 
(a) AUTHORITY.—^To provide access to sources of private financ-
ing to Indian families and Indian housing authorities who otherwise 
could not acquire housing financing because of the luiique legal 
status of Indian trust land, the Secretary may guarantee not to 
exceed 100 percent of the unpaid principal and interest due on 
any loan eligible under subsection (b) made to an Indian family 
or Indian housing authoirity. 
(b) ELIGIBLE LOANS.—Loans guaranteed pursuant to this sec-
tion shall meet the following requirements: 
(1) ELIGIBLE BORROWERS.—^The loans shall be made only 
to borrowers who are Indian families or Indian housing 
authorities. 
(2) ELIGIBLE HOUSING.—The loan shall be used to construct, 
acquire, or rehabilitate 1- to 4-family dwellings that are stand-
ard housing and are located on trust land or land located 
in an Indian or Alaska Native area. 
(3) SECURITY.—The loan may be secured by any collateral 
authorized imder existing Federal law or applicable State or 
tribal law. 
(4) LENDERS.—^^The loan shall be made only by a lender 
approved by and meeting qualifications established by the Sec-
retary, except that loans otherwise insured or guaranteed by 
an agency of the Federal Government or made by an organiza-
tion of Indians from amounts borrowed from the United States 
shall not be eligible for guarantee under this section. The 
following lenders are deemed to be approved under this 
paragraph: 
(A) Any mortgagee approved by the Secretary of Hous-
ing and Urban Development for participation in the single 
family mortgage insurance program imder title II of the 
National Housing Act. 
(B) Any lender whose housing loans imder chapter 
37 of title 38, United States Code are automatically guaran-
teed pursuant to section 1802(d) of such title. 
(C) Any lender approved by the Secretary of Agri-
culture to make guaranteed loans for single family housing 
imder the Housing Act of 1949. 
106 STAT. 3740 
PUBLIC LAW 102-550—OCT. 28, 1992 
(D) Any other lender that is supervised, approved, 
regulated, or insured by any agency of the Federal 
Government. 
(5) TERMS.—The loan shall— 
(A) be made for a term not exceeding 30 years; 
(B) bear interest (exclusive of the guarantee fee under 
section 404 and service charges, if any) at a rate agreed 
upon by the borrower and the lender and determined by 
the Secretarv to be reasonable, which may not exceed the 
rate generally charged in the area (as determined by the 
Secretary) for home mortgage loans not guaranteed or 
insured by any agency or instrumentality of the Federal 
(jovemment; 
(C) involve a principal obligation not exceeding— 
(i) an amoimt equal to the sum of (I) 97 percent 
of $25,000 of the appraised value of the property, as 
of the date the loan is accepted for guarantee, and 
(II) 95 percent of such value in excess of $25,000; 
and 
(ii) the amount approved by the Secretory imder 
this section; and 
(D) involve a payment on accoimt of the property (i) 
in cash or ite equivalent, or (ii) through the value of any 
improvements to the property made through the skilled 
or imskilled labor of the borrower, as the Secretory shall 
provide. 
(c) CERTIFICATE OF GUARANTEE.— 
(1) APPROVAL PROCESS.—Before the Secretory approves any 
loan for guarantee under this section, the lender shall submit 
the application for the loan to the Secretory for examination. 
If the Secretory approves the loan for guarantee, the Secretory 
shall issue a certiiicato imder this paragraph as evidence of 
the guarantee. 
(2) STANDARD FOR APPROVAL.—The Secretory may approve 
a loan for guarantee under this section and issue a certificate 
under this paragraph only if the Secretory determines there 
is a reasonable prospect of repajmient of the loan. 
(3) EFFECT.—^A certificate of guarantee issued under this 
paragraph by the Secretory shall be conclusive evidence of 
the eligibility of the loan for guarantee under the provisions 
of this section and the amount of such guarantee. Such evidence 
shall be incontestable in the hands of the bearer and the 
full faith and credit of the United Stotes is pledged to the 
payment of all amounto agreed to be paid by the Secretary 
as security for such obligations. 
(4) FRAUD AND MISREPRESENTATION.—This subsection may 
not be construed to preclude the Secretary from estoblishing 
defenses against the original lender based on fraud or material 
misrepresentotion or to bar the Secretory from estoblishing 
by regulations in effect on the date of issuance or disbursement, 
whichever is earlier, partial defenses to the amount payable 
on the guarantee. 
(d) GUARANTEE FEE.—^The Secretory shall fix and collect a 
guarantee fee for the guarantee of loans under this section, which 
may not exceed the amount equal to 1 percent of the principal 
obligation of the loan. The fee shall be paid by the lender at 
time of issuance of the guarantee and shall be adequate, in the 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3741 
determination of the Secretary, to cover expenses and probable 
losses. The Secretary shall deposit any fees collected under this 
subsection in the Indian Housing Loan Guarantee Fund established 
under subsection (i). 
(e) 
LIABILITY UNDER 
GUARANTEE.—The liability under a 
guarantee provided under this section shall decrease or increase 
on a pro rata basis according to any decrease or increase in the 
amount of the impaid obligation under the provisions of the loan 
agreement. 
(0 TRANSFER AND ASSUMPTION.—Notwithstanding any other 
provision of law, any loan guaranteed under this section, including 
the security given for the loan, may be sold or assigned by the 
lender to any financial institution subject to examination and super-
vision by an agency of the Federal Government or of any State 
or the District of Columbia. 
(g) 
DISQUALIFICATION 
OF 
LENDERS 
AND 
CIVIL 
MONEY 
PENALTIES.— 
(1) IN GENERAL.—^If the Secretary determines that any 
lender or holder of a guarantee certificate under subsection 
(c) has failed to maintain adequate accounting records, to ade-
quately service loans guaranteed under this section, to exercise 
proper credit or underwriting judgment, or has engaged in 
practices otherwise detrimental to the interest of a borrower 
or the United States, the Secretary may— 
(A) refuse, either temporarily or permanently, to 
guarantee any further loans made by such lender or holder; 
(B) bar such lender or holder from acquiring additional 
loans guaranteed under this section; and 
(C) reqmre that such lender or holder assume not 
less than 10 percent of any loss on further loans made 
or held by the lender or holder that are guaranteed under 
this section. 
(2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLATIONS.— 
If the Secretary determines that any lender or holder of a 
guarantee certificate iinder subsection (c) has intentionally 
failed to maintain adequate accounting records, to adequately 
service loans guaranteed under this section, or to exercise 
proper credit or underwriting judgment, the Secretary may 
impose a civil money penalty on such lender or holder in 
the manner and amount provided under section 536 of the 
National Housing Act with respect to mortgagees and lenders 
under such Act. 
(3) PAYMENT ON LOANS MADE IN GOOD FAITH.—Notwith-
standing paragraphs (1) and (2), the Secretary may not refuse 
to pay pursuant to a valid guarantee on loans of a lender 
or holder barred under this subsection if the loans were pre-
viously made in good faith. 
(h) PAYMENT UNDER GUARANTEE.— 
(1) LENDER OPTIONS.— 
(A) IN GENERAL.—^In the event of default by the bor-
rower on a loan guaranteed under this section, the holder 
of the guarantee certificate shall provide written notice 
of the default to the Secretary. Upon providing such notice, 
the holder of the guarantee certificate shall be entitled 
to payment under the guarantee (subject to the provisions 
of this section) and may proceed to obtain pajnment in 
one of the following manners: 
106 STAT. 3742 
PUBLIC LAW 102-550—OCT. 28, 1992 
(i) FORECLOSURE.—The holder of the certificate 
may initiate foreclosure proceedings in a court of com-
petent jurisdiction (after providing written notice of 
such action to the Secretary) and upon a final order 
by the court authorizing foreclosure and submission 
to the Secretary of a claim for payment under the 
guarantee, the Secretary shall pay to the holder of 
the certificate the pro rata portion of the amount 
guaranteed (as determined pursuant to subsection (e)) 
plus reasonable fees and expenses as approved by the 
Secretary. The Secretary shall be subrogated to the 
rights of the holder of the guarantee and the lender 
holder shall assign the obligation and security to the 
Secretary. 
(ii) No FORECLOSURE.—^Without seeking a judicial 
foreclosure (or in any case in which a foreclosure 
proceeding initiated under clause (i) continues for a 
period in excess of 1 year), the holder of the guarantee 
may submit to the Secretary a claim for pa3anent under 
the guarantee and the Secretary shall only pay to 
such holder for a loss on any single loan an amount 
equal to 90 percent of the pro rata portion of the 
amount guaranteed (as determined under subsection 
(e)). The Secretary shall be subrogated to the rights 
of the holder of the guarantee and the holder shall 
assign the obligation and security to the Secretary. 
(B) REQUIREMENTS.—Before any payment under a 
guarantee is made under subparagraph (A), the holder 
of the guarantee shall exhaust all reasonable possibilities 
of collection. Upon pa3nnent, in whole or in part, to the 
holder, the note or judgment evidencing the debt shall 
be assigned to the United States and the holder shall 
have no further claim against the borrower or the United 
States. The Secretary shall then take such action to collect 
as the Secretary determines appropriate. 
(2) ASSIGNMENT BY SECRETARY.—Notwithstanding para-
graph (1), upon receiving notice of default on a loan guaranteed 
luider this section from the holder of the guarantee, the Sec-
retary may accept assignment of the loan if the Secretary 
determines that the assignment is in the best interests of 
the United States. Upon assignment the Secretary shall pay 
to the holder of the guarantee the pro rata portion of the 
amount guaranteed (as determined under subsection (e)). The 
Secretary shall be subrogated to the rights of the holder of 
the guarantee and the holder shall assign the obligation and 
security to the Secretary. 
(3) LIMITATIONS ON LIQUIDATION.—In the event of a default 
by the borrower on a loan guaranteed under this section involv-
ing a security interest in tribal allotted or trust land, the 
Secretary shall only pursue liquidation after offering to transfer 
the account to an eligible tribal member, the tribe, or the 
Indian housing authority serving the tribe or tribes. If the 
Secretary subsequently proceeds to liquidate the account, the 
Secretary shall not sell, transfer, or otherwise dispose of or 
alienate the property except to one of the entities described 
in the preceding sentence. 
(i) INDIAN HOUSING LOAN GUARANTEE FUND.— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3743 
(1) ESTABLISHMENT.—There is established in the Treasury 
of the United States the Indian Housing Loan Guarantee Fund 
for the purpose of providing loan guarantees luider this section. 
(2) CREDITS.—^The Guarantee Fund shall be credited with— 
(A) any amounts, claims, notes, mortgages, contracts, 
and property acquired by the Secretary under this section, 
and any collections and proceeds therefrom; 
(B) any amounts appropriated under paragraph (7); 
(C) any guarantee fees collected under subsection (d); 
and 
(D) any intcirest or earnings on amoimts invested under 
paragraph (4). 
(3) USE.—^Amounts in the Guarantee Fund shall be avail-
able, to the extent provided in appropriation Acts, for— 
(A) fulfilling any obligations of the Secretary with 
respect to loans guaranteed under this section, including 
the costs (as such term is defined in section 502 of the 
Congressional Eludget Act of 1974) of such loans; 
(B) paying taxes, insurance, prior liens, expenses nec-
essary to make fiscal adjustment in connection with the 
application and transmittal of collections, and 
other 
expenses and advances to protect the Secretary for loans 
which are guaranteed under this section or held by the 
Secretary; 
(C) acquiring such security property at foreclosure sales 
or otherwise; 
(D) pa3dng administrative expenses in connection with 
this section; and 
(E) reasonable and necessary costs of rehabilitation 
and repair to properties that the Secretary holds or owns 
pursuant to this section. 
(4) iNVESTMENir.—^Any amoiints in the Guarantee Fund 
determined by the Secretary to be in excess of amounts cur-
rently required to carry out this section may be invested in 
obligations of the United States. 
(5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS AND 
MORTGAGES.— 
(A) REQUIREMENT OF APPROPRIATIONS.—The authority 
of the Secretary to enter into commitments to guarantee 
loans under this section shall be efTective for any fiscal 
year only to the extent or in such amounts as are or 
have been provided in appropriations Acts for such fiscal 
year. 
(B) 
LIMITATIONS 
ON COSTS OF GUARANTEES.—The 
authority of the Secretary to enter into commitments to 
guarantee loans under this section shall be efTective for 
any fiscal year only to the extent that amounts in the 
Guarantee Fund are or have been made available in appro-
priation Acts to cover the costs (as such term is defined 
in section 502 of the Congressional Budget Act of 1974) 
of such loan guarantees for such fiscal year. 
(C) LIMITATION ON OUTSTANDING AGGREGATE PRINCIPAL 
AMOUNT.—Subject to the limitetions in subparagraphs (A) 
and (B), the Secretory may enter into commitments to 
guarantee loans imder this section in each of fiscal years 
1993 and 1994 with an aggregate outstending principal 
106 STAT. 3744 
PUBLIC LAW 102-550—OCT. 28, 1992 
amount not exceeding such amount as may be provided 
in appropriation Acts for each such year. 
(6) LIABILITIES.—All liabilities and obligations of the assets 
credited to the Guarantee Fund under para^aph (2XA) shall 
be liabilities and obligations of the Guarantee Fund. 
(7) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Guarantee Fund to carry out 
this section such sums as may be necessary for fiscal year 
1993 and $50,000,000 for fiscal year 1994. 
Regulations. 
(j) REQUIREMENTS F
O
R STANDARD HOUSING.—The Secretary 
shall, by regulation, establish housing safety and quality standards 
for use under this section. Such standards shall provide sufficient 
flexibility to permit the use of various designs and materials in 
housing acquired with loans guaranteed imder this section. The 
standards shall require each dwelling unit in any housing so 
acquired t o ^ 
(1) be decent, safe, sanitary, and modest in size and design; 
(2) conform with applicable general construction standards 
for the region; 
(3) contain a heating system that— 
(A) has the capacity to maintain a minimum tempera-
ture in the dwelling of 65 degrees Fahrenheit during the 
coldest weather in the area; 
(B) is safe to operate and maintain; 
(C) delivers a imiform distribution of heat; and 
(D) conforms to any applicable tribal heating code or, 
if there is no applicable tribal code, an appropriate county. 
State, or National code; 
(4) contain a plumbing system that— 
(A) uses a properly installed system of piping; 
(B) includes a kitchen sink and a partitional bathroom 
with lavatory, toilet, and bath or shower; and 
(C) uses water supply, plumbing, and sewage disposal 
systems that conform to any applicable tribal code or, if 
there is no applicable tribal code, the minimum standards 
established by the applicable county or State; 
(5) contain an electrical system using wiring and equipment 
properly installed to safely supply electrical energy for adequate 
lighting and for operation of appliances that conforms to any 
applic£U>le tribal code or, if there is no applicable tribal code, 
an appropriate county. State, or National code; 
(6) be not less than— 
(AXi) 570 square feet in size, if designed for a family 
of not more than 4 persons; 
(ii) 850 square feet in size, if designed for a family 
of not less than 5 and not more than 7 persons; and 
(iii) 1020 square feet in size, if designed for a family 
of not less than 8 persons, or 
(B) the size provided under the applicable locally 
adopted standards for size of dwelling units; 
except that the Secretary, upon the request of a tribe or Indian 
housing authority, may waive the size requirements under this 
paragraph; and 
(7) conform with the ener^ performance requirements for 
new construction established oy the Secretary under section 
526(a) of the National Housing ^ t . 
(k) DEFINITIONS.—For purposes of this section: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3745 
(1) The term "family^ means 1 or more persons maintaining 
a household, £
1
8 the Secretary shall hy regulation provide. 
(2) The term "Guarantee Fund" means the Indian Housing 
Loan Guarantee Fimd established imder subsection (i). 
(3) The term "Indian" means person recognized as being 
Indian or Alaska Native by an Indian tribe, the Federal Govern-
ment, or any State. 
(4) The term "Indian area" means the area within which 
an Indian housing authority is authorized to provide housing. 
(5) The term Indian housing authority^ means any entity 
that— 
(A) is authorized to engage in or assist in the develop-
ment or operation of low-income housing for Indians; and 
(B) is established— 
(i) by exercise of the power of self-government 
of an Indian tribe independent of State law; or 
(ii) by operation of State law providing specifically 
for housing authorities for Indians, including regional 
housing authorities in the State of Alaska. 
(6) The term "Secretary" means the Secretary of Housing 
and Urban Development. 
(7) The term "standard housing" means a dwelling unit 
or housing that complies with the requirements established 
imder subsection (j). 
(8) The term "tribe" means any tribe, band, pueblo, group, 
community, or nation of Indians or Alaska Natives. 
(9) The term "trust land" means land title to which is 
held by the United States for the benefit of an Indian or 
Indian tribe or title to which is held by an Indian tribe subject 
to a restriction agsdnst alienation imposed by the United States. 
SEC. 185. ASSISTANCE UNDER SECTION 8 FOR HOMEOWNERSHIP. 
(a) AUTHORITY.—Section 8 of the United States Housing Act 
of 1937 (42 U.S.C. 1437f), is amended by adding at the end the 
following new subsection: 
"(y) HOMEOWNERSHIP OPTION.— 
"(1) USE OF ASSISTANCE FOR HOMEOWNERSHIP.—A family 
receiving tenant-based assistance imder this section may 
receive assistance for occupancy of a dwelling owned by one 
or more members of the family if the family— 
"(A) is a first-time homeowner; 
"(BXi) participates in the family self-sufficiency pro-
gram under section 23 of the public housing agency provid-
ing the assist^mce; or 
"(ii) demonstrates that the family has income from 
employment or other sources (other than public assistance), 
as determined in accordance with requirements of the Sec-
retary, that is not less than twice the payment standard 
established by the public housing agency (or such other 
amount as may be established by the Secretary); 
"(C) except as provided by the Secretary, demonstrates 
at the time the family initially receives tenant-based assist-
ance imder this subsection that one or more adult members 
of the family have achieved employment for the period 
as the Secretary shall require; 
"(D) participates in a homeownership and housing 
counseling program provided by the agency; and 
106 STAT. 3746 
PUBLIC LAW 102-550—OCT. 28, 1992 
**(£) meets any other initial or continuing requirements 
established by the public housing agency in accordance 
with requirements established by tne l^cretary. 
"(2) MONTHLY ASSISTANCE PAYMENT.— 
"(A) IN GENERAL.—^Notwithstcmding any other provi-
sions of this section governing determination of the amount 
of assistance payments under this section on behalf of 
a family, the monthly assistance payment for any family 
assisted under this subsection shall be the amount by 
which the fair market rental for the area established under 
subsection (cXD exceeds 30 percent of the family's monthly 
adjusted income; except that the monthly assistance pay-
ment shall not exceed the amoimt by which the monthlv 
homeownership expenses, as determined in accordance witn 
requirements estabUshed by the Secretary, exceeds 10 per-
cent of the famil/s monthly income. 
"(B) EXCLUSION OF EQUITY FROM INCOME.—For pur-
poses of determining the monthly assistance payment for 
a family, the Secretaiy shall not include in family income 
an amount imputed from the equity of the family in a 
dwelling occupied by the family with assistance under this 
subsection. 
"(3) RECAPTURE OF CERTAIN AMOUNTS.—Upon sale of the 
dwelling by the family, the Secretary shall recapture from 
any net proceeds the amount of additional assistance (as deter-
mined in accordance with requirements established by the Sec-
retary) paid to or on behalf of the eligible family as a result 
of paragraph (2XB). 
"(4) DOWNPAYMENT REQUIREMENT.—Each public housing 
agency providing assistance under this subsection shall ensure 
that each family assisted shall provide from its own resources 
not less than 80 percent of any downpayment in connection 
with a loan made for the purchase of a dwelling. Such resoiurces 
may include amounts from any escrow account for the family 
estabUshed under section 23(d). Not more than 20 percent 
of the downpajonent may be provided from other sources, such 
as from nonprofit entities and programs of States and units 
of general local government. 
"(5) INELIGIBIUTY UNDER OTHER PROGRAMS.—A family may 
not receive assistance under this subsection during any period 
when assistance is being provided for the family under other 
Federal homeownership assistance programs, as determined 
by the Secretary, inclumng assistance under the HOME Invest-
ment Partnerships Act, the Homeownership and Opportunity 
Through HOPE Act, title II of the Housii^ and Community 
Development Act of 1987, and section 502 of the Housing Act 
of 1949. 
"(6) INAPPUCABIUTY OF CERTAIN PROVISIONS.—Assistance 
under this subsection shall not be subject to the requirements 
of the following provisions: 
"(A) Subsection (cX3XB) of this section. 
"(B) Subsection (dXlXBXi) of this section. 
"(C) Any other provisions of this section governing 
maximum amounts payable to owners and amounts payable 
by assisted families. 
"(D) Any other provisions of this section concerning 
contracts between public housing agencies and owners. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3747 
"(E) Any other provisions of this Act that are incon-
sistent with the provisions of this subsection. 
"(7) REVERSION TO RENTAL STATUS.— 
"(A) FHA-INSURED MORTGAGES.—If a family receiving 
assistance under this subsection for occupancy of a dwelling 
defaults under a mortgage for the dwelling insured by 
the Secretary under the National Housing Act, the family 
may not continue to receive rental assistance under this 
section unless the family (i) transfers to the Secretary 
marketable title to the dwelling, (ii) moves from the dwell-
ing within the period established or approved by the Sec-
retary, and (iii) agrees that any amoimts the family is 
required to pay to reimburse the escrow account under 
section 23(d)(3) may be deducted by the public housing 
agency from the assistance payment otherwise payable on 
behalf of the family. 
"(B) OTHER MORTGAGES.—If a family receiving assist-
ance under this subsection defaults under a mortgage not 
insured imder the National Housing Act, the family may 
not continue to receive rental assistance under this section 
unless it complies with requirements established by the 
Secretary. 
"(C) ALL MORTGAGES.—^A family receiving assistance 
under this subsection that defaults under a mortgage may 
not receive assistance under this subsection for occupancy 
~^ 
of another dwelling owned by one or more members of 
the family. 
"(8) DEFINITION OF FIRST-TIME HOMEOWNER.—For purposes 
of this subsection, the term 'first-time homeowner* means— 
"(A) a family, no member of which has had a present 
ownership interest in a principal residence during the 3 
years preceding the date on which the family initially 
receives assistance for homeownership under this sub-
section; and 
"(B) any other family, as the Secretary may prescribe.". 
(b) FAMILY SELF-SUFFICIENCY PROGRAM.—Section 23(d) of the 
United States Housing Act of 1937 (42 U.S.C. 1437u) is amended 
by adding at the end the following new paragraph: 
(3) USE OF ESCROW SAVINGS ACCOUNTS FOR SECTION S 
HOMEOWNERSHIP.—Notwithstanding paragraph (3), a family 
that uses assistance under section 8(y) to purchase a dwelling 
may use up to 50 percent of the amount in its escrow account 
established under paragraph (3) for a downpajrment on the 
dwelling. In addition, after the family purchases the dwelling, 
the family may use any amounts remaining in the escrow 
account to cover the costs of major repair and replacement 
needs of the dwelling. If a family defaults in connection with 
the loan to purchase a dwelling and the mortgage is foreclosed, 
the remaining amounts in the escrow accoiuit shall be recap-
tured by the Secretary.". 
(c) USE OF F H A INSURANCE WITH SECTION 8 HOMEOWNER-
SHIP.— 
(1) IN GENERAI..—Section 203 of the National Housing Act 
(12 U.S.C. 1709) is amended— 
(A) in the matter preceding subparagraph (A) in sub-
section (c)(2), by inserting "or of the General Insurance 
Fund pursuant to subsection (v)" after "Fund"; and 
106 STAT. 3748 
PUBLIC LAW 102-550—OCT. 28, 1992 
^ 
(B) by adding at the end the following new subsection: 
**(v) Notwithstanding section 202 of this title, the insurance 
of a mortgage under this section in connection with the assistance 
provided under section 8(y) of the United States Housing Act of 
1937 shall be the obligation of the General Insurance Fund created 
pursuant to section 519 of this title. The provisions of subsections 
(a) through (h), (j), and (k) of section 204 shall apply to such 
mortgages, except that (1) all references in section 204 to the 
Mutual Mortgage Insurance Fund or the Fund shall be construed 
to refer to the General Insurance Fund, and (2) any excess amounts 
described in section 204(f)(1) shall be retained by the Secretary 
and credited to the General Insurance Fund.". 
(2) GENERAL INSURANCE FUND.—Section 519(e) of the 
National Housing Act (12 U.S.C. 1735c(e)) is amended by insert-
ing after "203(b)" the following: "(except as provided in section 
203(v))". 
(3) 
MORTGAGE INSURANCE TRANSITION PREMIUMS.—The 
matter preceding paragraph (1) in section 2103(b) of the Omni-
bus Budget Reconcihation Act of 1990 (12 U.S.C. 1709 note) 
is amended by inserting "or of the General Insurance Fund 
pursuant to section 203(v) of the National Housing Act" aftier 
"Fund". 
(4) CONFORMING AMENDMENT.—The third sentence of sec-
tion 3(a)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(a)(l)) is amended by inserting "or (y) or paying 
rent under section 8(c)(3)(B)" after "section 8(o)". 
Disadvantaged. 
SEC. 186. ENTERPRISE 
ZONE 
HOMEOWNERSHIP 
OPPORTUNITY 
42 use 12898a. 
GRANTS. 
(a) STATEMENT OF PURPOSE.—It is the purpose of this section— 
(1) to encourage homeownership by families in the United 
States who are not otherwise able to aftbrd homeownership; 
(2) to encourage the redevelopment of economically 
depressed areas; and 
(3) to provide better housing opportunities in federally 
approved and equivalent State-approved enterprise zones. 
(b) DEFINITIONS.—For purposes of this section the following 
definitions shall apply: 
(1) HOME.—^The term "home" means any 1- to 4-family 
dwelling. Such term includes any dwelling unit in a condomin-
ium project or cooperative project consisting of not more than 
4 dwelling units, any town house, and any manufactured home. 
(2) METROPOLITAN STATISTICAL AREA.—^The term "metro-
politan statistical area" means a metropolitan statistical area 
as established by the Oftlce of Management and Budget. 
(3) 
NONPROFIT 
ORGANIZATION.—The 
term 
"nonprofit 
organization" means a private nonprofit corporation, or other 
private nonprofit legal entity, that is approved by the Secretary 
as to financial responsibility. 
(4) SECRETARY.—^The term "Secretary" means the Secretary 
of Housing and Urban Development. 
(5) STATE.—^The term "State" means each of the several 
States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, the Northern 
Mariana Islands, the Trust Territory of the Pacific Islands, 
. and any other territory or possession of the United Stetes. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3749 
(6) UNIT OF GENERAL LOCAL GOVERNMENT.—The term "unit 
of general local government" means any borough, city, county, 
parish, town, township, village, or other general purpose politi-
cal subdivision of a State. 
(c) ASSISTANCE TO NONPROFIT ORGANIZATIONS.— 
(1) IN GENERAL.—^The Secretary may provide assistance 
to nonprofit 
organizations to carry out enterprise 
zone 
homeownership opportunity programs to promote homeowner-
ship in federally approved and equivalent State-approved enter-
prise zones in accordance with the provisions of this section. 
Such assistance shall be made in the form of grants. 
(2) APPLICATIONS.—^Applications for assistance under this 
section shall be made in such form, and in accordance with 
such procedures, as the Secretary may prescribe. 
(d) ELIGIBLE USES OF ASSISTANCE.— 
(1) IN GENERAL.—^Any nonprofit organization receiving 
assistance under this section shall use such assistance to pro-
vide loans to families purchasing homes constructed or rehabili-
tated in accordance with an enterprise zone homeownership 
opportunity program approved under this section. 
(2) SPECIFIC RE;QUIREMENTS.—Each loan made to a family 
under this subsection shall— 
(A) be secured by a second mortgage held by the Sec-
retary on the property involved; 
(B) be in an amount not exceeding $15,000; 
(C) bear no interest; and 
(D) be repayable to the Secretary upon the sales, lease, 
or other transfer of such property. 
(e) PROGRAM REQUIIEIEMENTS.-
(1) IN GENERAL.—^Assistance provided under this section 
may be used onl}^ in connection with an enterprise zone 
homeownership 
opportunity 
program 
of 
construction 
or 
rehabilitation of homes. 
(2) FAMILY NEED.—Each family purchasing a home under 
this section shall— 
(A) have a family income on the date of such purchase 
that is not more than the median income for a family 
of 4 persons (adjusted for family size) in the metropolitan 
statistical area in which a federally approved or equivalent 
State-approved enterprise zone is located; and 
(B) not have owned a home during the 3-year period 
preceding such purchase. 
(3) DOWNPAYMENT.—Each family purchasing a home imder 
this section shall make a downpajrment of not less than 5 
percent of the sale price of such home. 
(4) LEASING PROHIBITION.—No family purchasing a home 
under this section may lease such home. 
(f) TERMS AND CONDITIONS OF ASSISTANCE.— 
(1) LOCAL CONSULTATION.—No proposed enterprise zone 
homeownership opportunity program may be approved by the 
Secretary imder this section vmless the applicant involved dem-
onstrates to the satisfaction of the Secretary that— 
(A) it has consulted with and received the support 
of residents of the neighborhood in which such program 
is to be located; and 
(B) it has the approval of each unit of general local 
government in which such program is to be located. 
106 STAT. 3750 
PUBLIC LAW 102-550—OCT. 28, 1992 
Appropriation 
authorization. 
(2) PROGRAM SCHEDULE,—Each applicant for assistance 
under this section shall submit to the Secretary an estimated 
schedule for completion of its proposed enterprise 
zone 
homeownership opportunity program, which schedule shall 
have been agreed to by each unit of general local government 
in which such program is to be located. 
(3) LOCATION.—^All homes constructed or rehabilitated 
under such program will be located in federally approved or 
equivalent State-approved enterprise zones. 
(4) SALES CONTRACTS.—Sales contracts entered into xmder 
such program will contain provisions requiring repayment of 
any loan made under this section upon the sale or otner transfer 
of the home involved, unless the Secretary approves a transfer 
of such home without repayment (in which case the second 
mortgage held by the Secretary on such home shall remain 
in force until such loan is fully repaid). 
(g) PROGRAM SELECTION CRITERIA.— 
(1) IN GENERAL.—In selecting enterprise zone homeowner-
ship opportunity programs for assistance under this section 
from among eligible programs, the Secretary shall make such 
selection on the basis of the extent to which— 
(A) non-Federal public or private entities will contrib-
ute land necessary to make each program feasible; 
(B) non-Federal public and private financial or other 
contributions (including tax abatements, waivers of fees 
related to development, waivers of construction, devel-
opment, or zoning requirements, and direct financial con-
tributions) will reduce the cost of home constructed or 
rehabilitated under each program; 
(C) each program will produce the greatest number 
of units for the least amount of assistance provided under 
this section, taking into consideration the cost differences 
among different market areas; and 
(D) each program provides for the involvement of local 
residents in the planning, and construction or rehabilita-
tion, of homes. 
(2) EXCEPTION.—To the extent that non-Federal public enti-
ties are prohibited by the law of any State from making any 
form of contribution described in subparagraph (A) or (B) of 
paragraph (1), the Secretary shall not consider such form of 
contribution in evaluating such program. 
(h) REGULATIONS.—Not later than 180 days aft;er the date of 
enactment of this section, the Secretary shall issue final regulations 
to carry out the provisions of this title. Any such regulations shall 
be issued in accordance with section 553 of title 5, United States 
Code, notwithstanding the provisions of subsection (a)(2) of such 
section. 
(i) FUNDING.—^There are authorized to be appropriated to carry 
out this section $30,000,000 in each of fiscal years 1993 and 1994. 
Subtitle F—Implementation 
Regulations. 
42 u s e 1437a 
note. 
SEC. 191. IMPLEMENTATION. 
The Secretary of Housing and Urban Development shall issue 
any final regulations necessary to implement the provisions of this 
title and the amendments made by this title not later than the 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3751 
expiration of the 180-day period beginning on the date of the enact-
ment of this Act, except as expressly provided otherwise in this 
title and the amendments made by this title. Such regulations 
shall be issued after notice and opportunity for public comment 
pursuant to the provisions of section 553 of title 5, United States 
Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
section). 
TITLE II—HOME INVESTMENT 
PARTNERSHIPS 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Section 205 of the Cranston-Gonzalez National Affordable Hous-
ing 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 $2,086,000,000 for fiscal year 1993, and $2,173,612,000 for 
fiscal year 1994, of which— 
"(1) not more than $14,000,000 for fiscal year 1993, and 
$14,000,000 for fiscal year 1994, shall be for community housing 
partnership activities authorized under section 233; and 
"(2) not more than $11,000,000 for fiscal year 1993, and 
$11,000,000 for fiscal year 1994, shall be for activities in sup-
port of State and local housing strategies authorized imder 
subtitle C". 
SEC. 202. HOME PROGRAM THRESHOLDS. 
(a) PARTICIPATING JURISDICTIONS.—Section 216 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12746) is 
amended— 
(1) in paragraph (3), by striking "A jurisdiction" and insert-
ing "Except as provided in paragraph (10), a jurisdiction"; 
(2) in paragraph (9)(B), by inserting ", except as provided 
in paragraph (10)" after "in any 1 year"; and 
(3) by adding at the end the following: 
"(10) THRESHOLD REDUCTION.—If the amount appropriated 
pursuant to section 205 for any fiscal year is less than 
$1,500,000,000, then this section shall be applied during that 
year— 
"(A) by substituting '$500,000' for '$750,000' both places 
it appears in paragraph (3); and 
"(B) 
by 
substituting 
'$500,000', 
'$410,000', 
and 
'$335,000' for '$750,000', '$625,000', and '$500,000', respec-
tively, where they appear in paragraph (9).". 
(b) SUPPLEMENTAL ALLOCATION.—Section 217(b) of the Cran-
ston-Gonzalez National Afi^ordable Housing Act (42 U.S.C. 12747(b)) 
is amended— 
(1) in paragraph (3), by inserting ", except as provided 
in paragraph (4)" before the period at the end of the second 
sentence; and 
(2) by adding at the end the following: 
"(4) THRESHOLD REDUCTION.—If the amount appropriated 
pursuant to section 205 for any fiscal year is less than 
$1,500,000,000, then this section shall be applied during that 
106 STAT. 3752 
PUBLIC LAW 102-550—OCT. 28, 1992 
year by substituting '$335,000' for '$500,000' where it appears 
in paragraph (3).". 
42 use 12746 
(c) APPLICABILITY.—^Notwithstanding any other provision of law, 
"°** 
the grant thresholds provided for in section 216, as amended by 
this section, and the grant thresholds provided for in section 217(b) 
of the Cranston-Gonzalez National Affordable Housing Act, as 
amended by this section, shall apply. 
SEC. 203. ELIMINATION OF RESTRICTIONS ON NEW CONSTRUCTION. 
(a) ELIGIBLE USES OF INVESTMENT.—Section 212(a) of the Cran-
ston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) 
is amended— 
(1) in the last sentence of paragraph (2), by striking "under 
paragraph (3) of this subsection or"; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as paragraph (3). 
(b) FORMULA ALLOCATION.—Section 217(D)(1) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12747(b)(1)) 
is amended— 
(1) by striking subparagraph (A); 
(2) in subparagraph (D), by striking "Except as provided 
in subparagraph (A), the basic formula established under 
subparagraph (B)" and inserting 'The basic formula established 
under subparagraph (A)"; 
(3) in subparagraph (E), by striking "formulas in subpara-
graph (B)" and inserting "formiila in subparagraph (A)"; 
(4) in subparagraph (F)— 
(A) in the first sentence, by striking "subparagraph 
(B)" and inserting "subparagraph (A)"; and 
(B) by striking the second sentence; 
(5) in subparagraph (G), by striking "formulas in subpara-
graphs (A) and (B)" and inserting "formula in subparagraph 
(A)'*; and 
(6) by redesignating subparagraphs (B) through (G) (as 
amended by this paragraph) as subparagraphs (A) through 
(F), respectively. 
(c) CONFORMING AMENDMENT.—Section 218(g) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g)) 
is 
amended 
by striking 
"Except 
as provided 
in 
section 
217(bXl)(A)(ii), if' and inserting "If. 
SEC. 204. POUCIES AND PREFERENCE RULES; USE OF TENANT-BASED 
RENTAL ASSISTANCE AMOUNTS FOR SECURITY DEPOSITS. 
(a) POLICIES AND PREFERENCE RULES.—Section 212(a)(3) of the 
Cranston-Gronzalez National Affordable Housing Act (42 U.S.C. 
12742(aX3)), as so redesignated by section 203(aX3) of this Act, 
is amended by adding at the end the following: 
^(E) SECURITY DEPOSIT ASSISTANCE.—A jurisdiction 
using funds provided under this subtitle for tenant-based 
rental assistance may use such funds to provide loans 
or grants to very low- and low-income families for security 
deposits for rental of dwelling units. Assistance under this 
subparagraph does not preclude assistance under any other 
provision of this paragraph.". 
(b) SECURITY DEPOSITS.—Section 212(aX3)(A) of the Cranston-
Gronzalez 
National 
Affordable 
Housing 
Act 
(42 
U.S.C. 
12742(aX4XA)), as so redesignated by section 203(aX3) of this Act, 
is amended by striking clause (ii) and inserting the following: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3753 
''(ii) the tenant-based rental assistance is provided 
in accordance with written tenant selection policies 
and criteria that are consistent with the purposes of 
providing housing to very low- and low-income families 
and are reasonably related to preference rules estab-
lished under section 6(cX4XA) of the Housing Act of 
1937.". 
SEC. 206. USE OF HOME FUNDS FOR HOMELESS ASSISTANCE. 
Section 212(a)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12742(aXl)) is amended by adding at the 
end the following: "For the purpose of this subtitle, the term 'afford-
able housing* includes permanent housing for disabled homeless 
persons, transitional housing, and single room occupancy housing.". 
SEC. 206. PER UNIT COST LIMITS. 
Section 212(dXl) of the Cranston-Gonzalez National Affordable 
Regulations. 
Housing Act (42 U.S.C. 12742(dXl)) is amended by inserting after 
the first sentence the following: "For multifamily housing, such 
limits shall not be less than the per unit dollar amount limitations 
set forth in section 221(dX3)(ii) of the National Housing Act, as 
such limitations may be adjusted in accordance therewith, except 
that for purposes of this subsection the Secretary shall, by regula-
tion, increase the per unit dollar amount limitations in any geo-
graphical area by an amount, not to exceed 140 percent, that 
equals the amount by which the costs of multifamily housing 
construction in the area exceed the national average of such costs. . 
SEC. 207. ADMINISTRATIVE COSTS AS ELIGIBLE USE OF INVESTMENT. 
(a) HOUSING USES.—Section 212(aXl) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(aXl)) is amended 
by inserting after "organizations," the following: "to provide for 
the pa3nnent of reasonable administrative and planning costs, to 
provide for the payment of operating expenses of community hous-
ing development organizations,". 
(b) ELIGIBLE USE.—Section 212 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742) is amended— 
(1) in subsection (c)(1), by inserting "that exceed the 
amount specified under subsection (c)" before the comma at 
the end; 
(2) by redesignating subsections (c), (d) (as amended by 
the preceding provisions of this Act), and (e) as subsections 
(d), (e), and (^, respectively; and 
(3) by inserting after subsection (b) the following: 
"(c) ADMINISTRATIVE COSTS.—In each fiscal year, each partici-
pating jurisdiction may use not more than 10 percent of the funds 
made available under this subtitle to the jurisdiction for such year 
for any administrative and planning costs of the jurisdiction in 
carrying out this subtitle, including the costs of the salaries of 
persons engaged in administering and managing activities assisted 
with fluids made available under this subtitle.". 
(c) RECOGNITION OF MATCH.—Section 220 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12750) is 
amended— 
(1) in subsection (b)(2), by striking "shall" and all that 
follows and inserting "may not be recognized for purposes of 
subsection (a)."; and 
(2) in subsection (c)— 
106 STAT. 3754 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3), (4), and (5) as 
paragraphs (2), (3), and (4), respectively. 
(d) LIMITATION ON ADMINISTRATIVE COSTS.—Section 212 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12742) is amended by adding at the end the following: 
"(g) LIMITATION ON OPERATING ASSISTANCE.—A participating 
jurisdiction may not use more than 5 percent of its allocation 
imder this subtitle for the pajnnent of operating expenses for 
community housing development organizations.". 
SEC. 208. AFFORDABLE HOUSING. 
(a) RENT CALCULATIONS.—Section 215(a) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) 
is amended— 
(1) in paragraph (IXA) by striking "smaller and larger 
families" and inserting "number of bedrooms in the unit"; 
(2) in paragraph (3), by adding at the end the following: 
"The preceding sentence shall not apply with respect to funds 
made available under this Act for units that have been allocated 
a low-income housing tax credit by a housing credit agency 
pursuant to section 42 of the Internal Revenue Code 1986."; 
and 
(3) in the second sentence of paragraph (3), by striking 
"not less than" and inserting "the lesser of the amount payable 
by the tenant under State or local law or". 
(b) EXCEPTION TO TERMINATION RULE.—Section 215(aXl)(E) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(a)(1)(E)) is amended by inserting after "Act" the following: 
", except upon a foreclosure by a lender (or upon other transfer 
in lieu of foreclosure) if such action (i) recognizes any contractual 
or legal rights of public agencies, nonprofit sponsors, or others 
to take actions that would avoid termination of low-income afford-
ability in the case of foreclosure or transfer in lieu of foreclosure, 
and (ii) is not for the purpose of avoiding low income affordability 
restrictions, as determined by the Secretary". 
SEC. 209. HOMEOWNERSHIP RESALE RESTRICTIONS. 
Section 215(b) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12745(b)) is amended by striking paragraph 
(4) and inserting the following: 
"(4) is subject to resale restrictions that are established 
by the participating jurisdiction and determined by the Sec-
retary to be appropriate to— 
"(A) allow for subsequent purchase of the property 
only by persons who meet the qualifications specified under 
paragraph (2), at a price which will— 
"(i) provide the owner with a fair return on invest-
ment, including any improvements, and 
"(ii) ensure that the housing will remain affordable 
to a reasonable range of low-income homebuyers; or 
"(B) recapture the investment provided under this title 
in order to assist other persons in accordance with the 
requirements of this subsection, except where there are 
no net proceeds or where the net proceeds are insufficient 
to repay the full amount of the assistance; and". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3755 
SEC. 210. MATCHING REQUIREMENTS. 
(a) TIERED CONTRIBUTION.—Section 220(a) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12750(a)) 
is amended— 
(1) in paragraph (1)— 
(A) by striking "and" and inserting a comma; 
(B) by inserting "and substantial rehabilitation" after 
"rehabilitation"; and 
(C) by inserting "and" after the semicolon; 
(2) in paragraph (2)— 
(A) by striking "33" and inserting "30"; and 
(B) by striking "substantial rehabilitation; and" and 
inserting new construction."; 
(3) by striking paragraph (3); and 
(4) in the matter preceding para^aph (1), by striking 
"affordable housing assisted under this title" and inserting 
"housing that qualifies as affordable housing imder this title . 
(b) FORM.—Section 220(c) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12750(c)) is amended— 
(1) by striking "and" at the end of paragraph (4); 
(2) by striking the period at tne end of paragraph (5) 
and inserting a semicolon; and 
(3) by adding at the end the following: 
"(6) up to— 
"(A) 50 percent of proceeds from bond financing validly 
issued by a State or local government, agency or instrumen-
tality thereof, or political subdivision thereof, and repavable 
with revenues derived from a multifamily affordable hous-
ing project financed, and 
"(B) 25 percent of proceeds from bond financing validly 
issued by a State or local government, agency or instrumen-
tality thereof, or political subdivision thereof, and repayable 
with revenues derived from a single-family project financed, 
but not more than 25 percent of the contribution required 
under subsection (a) may oe derived from these sources; 
"(7) the reasonable value of any site-preparation and 
construction materials and any donated or voluntary labor in 
connection with the site-preparation for, or construction or 
rehabilitation of, affordable housing; and 
"(8) such other contributions to affordable housing as the 
Secretary considers appropriate.". 
(c) REDUCTION OF REQUIREMENT.—Section 220 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12750) is 
amended by striking subsection (d) and inserting: 
"(d) REDUCTION OF REQUIREMENT.— 
"(1) IN GENERAL.—^The Secretary shall reduce the matching 
requirement under subsection (a) with respect to any fimds 
drawn from a jurisdiction's HOME Investment Trust Fund 
Account during a fiscal year by— 
"(A) 50 percent for a jurisdiction that certifies that 
it is in fiscal distress; and 
"(B) 100 percent for a jurisdiction that certifies that 
it is in severe fiscal distress. 
"(2) DEFINITIONS.—For purposes of this section— 
"(A) 'fiscal distress' means a jurisdiction other than 
a State that satisfies 1 of the distress criteria set forth 
in paragraph (3); and 
106 STAT. 3756 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(B) 'severe fiscal distress' means a jurisdiction other 
than a State that satisfies both of the distress criteria 
set forth in paragraph (3). 
**(3) DISTRESS CRITERIA.—^For purposes of a jurisdiction 
other than a State certifying that it is distressed, the following 
criteria shall apply: 
"(A) POVERTY RATE.—^The average poverty rate in the 
jurisdiction for the calendar year immediately preceding 
the year in which its fiscal year begins was equal to or 
greater than 125 percent of the average national poverty 
rate during such calendar year (as determined according 
to information of the Bureau of the Census). 
"(B) PER CAPITA INCOME.—The average per capita 
income in the jurisdiction for the calendar year immediately 
{)receding the year in which its fiscal year begins was 
ess than 75 percent of the average national per capita 
income during such calendar year (as determined according 
to information of the Bureau of the Census). 
"(4) STATES.—In determining the degree to which a jurisdic-
tion that is a State is distressed, the Secretary shall take 
into consideration the State's fiscal capacity and expenditure 
needs as determined by a national organization which compiles 
the relevant data. 
"(5) WAIVER IN DISASTER AREAS.—If a participating jurisdic-
tion is located in an area in which a declaration of a disaster 
pursuant to the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act is in effect for any part of a fiscal year, 
the Secretary may reduce the matching requirement for that 
fiscal year imder subsection (a) with respect to any funds 
drawn from a jurisdiction's HOME Investment Trust Fund 
Account during that fiscal year by up to 100 percent.". 
42 use 12750 
(d) APPLICABILITY.—The amendments made by this section shall 
""**• 
apply with respect to fiscal year 1993 and each fiscal year 
thereafter. 
SEC. 211. ASSISTANCE FOR INSULAR AREAS. 
(a) REPEAL OF AMENDMENTS MADE BY PUBLIC LAW 102-230.— 
(1) DEFINITIONS.—Section 104 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12704) is amended 
to read as if the amendments made by section 2 of Public 
Law 102-230 (105 Stat. 1720) had not been enacted. 
(2) ALLOCATION OF RESOURCES.—Section 217(a) of the Cran-
ston-(jionzalez National Affordable Hoiising Act (42 U.S.C. 
12747(a)) is amended— 
(A) by striking the first sentence of paragraph (1) and 
inserting the following: "After reserving amounts under 
paragraph (2) for Indian tribes and after reserving amounts 
under paragraph (3) for the insular areas, the Secretary 
shall allocate funds approved in an appropriation Act to 
carry out this title by formula as provided in subsection 
(b)."; 
(B) by striking paragraph (3) (as added by Public Law 
102-229; 105 Stat. 1709); 
(C) by striking paragraph (3) (as added by Public Law 
102-230; 105 Stat. 1720); and 
(D) by adding after paragraph (2) the following: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3757 
"(3) INSULAR AREAS.—^For each fiscal year, of any amounts 
approved in appropriation Acts to carry out this title, the Sec-
retary shall reserve for grants to the insular areas the greater 
of (A) $750,000, or (B) 0.2 percent of the amounts appropriated 
under such Acts. The Secretary shall provide for the distribu-
tion of amounts reserved under this paragraph among the 
insular areas pursu£uit to specific criteria for such distribu-
tion, which shall be contained in a regulation issued by the 
Secretary.". 
(3) EXPEDITED ISSUANCE OF REGULATION.—The regulation 
referred to in the amendment made by paragraph (2XD) shall 
take effect not later than the expiration of the 90-day period 
beginning on the date of the enactment of this Act. The regula-
tion shall not be subject to the requirements of subsections 
(b) and (c) of section 553 of title 5, United States Code, or 
section 7(o) of the Department of Housing and Urban Develop-
ment Act. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply with respect to fiscal year 1993 and thereafter. 
SEC. 212. COMMUNITY HOUSING PRODUCTION SET-ASIDE. 
(a) EXTENSION OF PBJRIOD.—Section 231 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12771) is 
amended by striking "18 months" each place it appears in sub-
sections (a) and (b) and inserting "24 months". 
(b) ALLOCATION FOR USE BY NONPROFIT ORGANIZATION.—Sec-
tion 231(a) of the Cranston-Cjronzalez National Affordable Housing 
Act (42 U.S.C. 12771(a)) is amended by inserting after the second 
sentence the following: "If during the first 24 months of its participa-
tion under this title, a participating jurisdiction is unable to identify 
a sufficient number of capable commimity housing development 
organizations, then up to 20 percent of the funds allocated to 
that jurisdiction imder this section, but not to exceed $150,000, 
may be made available to carry out activities that develop the 
capacity of community housing development organizations in that 
jurisdiction.". 
(c) OTHER REQUIREMENTS.—Section 234(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12774(b)) 
is amended— 
(1) by striking ", together with other Federal assistance,"; 
and 
(2) by inserting before the period the following: "or $50,000 
annually, whichever is greater". 
SEC. 213. HOUSING EDUCATION AND ORGANIZATIONAL SUPPORT FOR 
COMMUNITY LAND TRUSTS. 
(a) COMMUNITY LAND TRUSTS.—Section 233 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12773) is 
amended— 
(1) in subsection (aX2), by inserting ", including community 
land trusts," after "organizations"; 
(2) in subsection (b), by adding at the end the following: 
"(6) COMMUNITY LAND TRUSTS.—Organizational support, 
technical assistance, education, training, and continuing sup-
I
>ort under this subsection may be made available to community 
and trusts (as such term is defined in subsection (f)) and 
to community groups for the establishment of community land 
trusts."; and 
Regulations. 
Effective date. 
42 use 12747 
note. 
42 u s e 12704 
note. 
106 STAT. 3758 
PUBLIC LAW 102-550—OCT. 28, 1992 
(3) by adding at the end the following: 
"(f) DEFINITION OF COMMUNITY LAND TRUST.—For purposes 
of this section, the term 'community land trust' means a community 
housing development organization (except that the requirements 
under subparagraphs (C) and (D) of section 104(6) shall not apply 
for purposes of this subsection>— 
"(1) that is not sponsored by a for-profit organization; 
"(2) that is established to carry out the activities luider 
paragraph (3); 
"(3) that>-
"(A) acquires parcels of land, held in perpetuity, pri-
marily for conveyance under long-term ground leases; 
"(B) transfers ownership of any structural improve-
ments located on such leased parcels to the lessees; and 
"(C) retains a preemptive option to purchase any such 
structural improvement at a price determined by formula 
that is designed to ensure that the improvement remains 
affordable 
to low- and 
moderate-income 
families 
in 
perpetuity; 
"(4) whose corporate membership that is open to any adult 
resident of a particular geographic area specified in the bylaws 
of the organization; and 
"(5) whose board of directors— 
"(A) includes a majority of members who are elected 
by the corporate membership; and 
"(B) is composed of equal numbers of (i) lessees pursu-
ant to paragraph (3)(B), (ii) corporate members who are 
not lessees, and (iii) any other category of persons described 
in the bylaws of the organization.", 
(b) WOMEN IN HOMEBUILDING.—Section 233 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12773), as 
amended by subsection (a) of this section, is further amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking "and" at the end; 
(B) in paragraph (2), by striking the period at the 
end and inserting "; and"; and 
(C) by adding at the end the following: 
"(3) to achieve the purposes under paragraphs (1) and 
(2) by helping women who reside in low- and moderate-income 
neighborhoods rehabilitate and construct housing in the 
neighborhoods.". 
(2) in subsection (b), by adding after paragraph (6) (as 
added by subsection (a)(2) of this section) the following: 
"(7) FACILITATING WOMEN IN HOMEBUILDING PROFESSIONS.— 
Technical assistance may be made available to businesses, 
unions, 
and 
organizations 
involved 
in 
construction 
and 
rehabilitation of housing in low- and moderate-income areas 
to assist women residing in the area to obtain jobs involving 
such activities, which may include facilitating access by such 
women to, and providing, apprenticeship and other training 
programs regarding nontraditional skills, recruiting women to 
participate in such programs, providing continuing support for 
women at job sites, counseling and educating businesses regard-
ing suitable work environments for women, providing informa-
tion to such women regarding opportunities for establishing 
small housing construction and rehabilitation businesses, and 
providing materials and tools for training such women (in an 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3759 
amount not exceeding 10 percent of any assistance provided 
under this paragraph). The Secretary shall give priority under 
this paragraph to providing technical assistance for organiza-
tions rehabilitating single family or multifamily housing owned 
or controlled by the Secretary pursuant to title II of the 
National Housing Act and which have women members in 
occupations in which women constitute 25 percent or less of 
the total number of workers in the occupation (in this section 
referred to as 'nontraditional occupations')."; 
(3) in subsection (c)(1)— 
(A) in subparagraph (C), by striking "and" at the end; 
(B) in subparagraph (D), by striking "or" at the end 
and inserting "and"; and 
(C) by adding at the end the following: 
"(E) in the case of activities under subsection (bX7), 
is a community-based organization (as such term is defined 
in section 4 of the Job Training Partnership Act) or public 
housing agency, which has demonstrated experience in 
preparing women for apprenticeship training in construc-
tion or administering programs for training women for 
construction or other nontraditional occupations (and such 
organizations may use assistance for activities under such 
subsection to employ women in housing construction and 
rehabilitation activities to the extent that the organization 
has the capacity to conduct such activities); or"; and 
(4) by adding at the end of subsection (e) the following: 
"The Secretary shall provide assistance under this section, to 
the extent applications are submitted and approved, to contrac-
tors in each of the geographic regions having a regional ofEice 
of the Department of Housing and Urban Development.". 
SEC. 214. LAND BANK REDEVELOPMENT. 
(a) PRIORITIES FOR CAPACITY DEVELOPMENT.—Section 242 of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12782) is amended— 
(1) in paragraph (4), by striking "and" at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(6) facilitate the establishment and efficient operation of 
land bank programs, under which title to vacant and abandoned 
parcels of real estate located in or causing blighted neighbor-
hoods is cleared for use consistent with the purposes of this 
title.". 
SEC. 215. RESEARCH 
IN 
PROVIDING 
AFFORDABLE 
HOUSING 
THROUGH INNOVATIVE 
BUILDING 
TECHNIQUES 
AND 
TECHNOLOGY. 
The second sentence of section 244 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12784) is amended 
by inserting before the period at the end the following: ", through 
the use of cost-saving innovative building technology and construc-
tion techniques". 
106 STAT. 3760 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 216. USE OF INNOVATIVE BUILDING TECHNOLOGIES TO PRO-
VIDE COST-SAVING HOUSING OPPORTUNITIES. 
Subtitle D of title II of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12801 et seq.) is amended by adding 
at the end the following: 
42 use 12810. 
"SEC. 260. COST-SAVING BUILDING TECHNOLOGIES AND CONSTRUC-
TION TECHNIQUES. 
"(a) IN GENERAL.—The Secretary shall make available a model 
program to utilize cost-saving building technologies and construction 
techniques for purposes of providing homeownership and rental 
opportunities imder this title. 
"(b) SELECTION CRITERIA.—The Secretary shall establish cri-
teria for participating jurisdictions to select projects for assistance 
luider the model program which may include— 
"(1) the extent to which innovative, cost-saving building 
and construction technologies are utilized; 
"(2) the extent to which innovative, cost-saving construction 
techniques are utilized; 
"(3) the extent to which units will be made available to 
low-income families and individuals; 
"(4) the extent to which non-Federal public or private 
assistance is utilized; and 
"(5) any other factor, determined by the Secretary to be 
appropriate. 
"(c) (JUIDELINES.—^The Secretary shall publish guidelines for 
the model program under this section not later than 180 days 
after the date of the enactment of the Housing and Community 
Development Act of 1992. 
"(d) REPORT.—^The Secretary shall submit a biennial report 
to the Congress on the utilization of the model program under 
this section. . 
SEC. 217. DEFINITION 
OF COMMUNITY 
HOUSING 
DEVELOPMENT 
ORGANIZATION. 
(a) IN GENERAL.—Section 104(6) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12704(6)) is amended 
by adding at the end the following new flush material: 
"In the case of an organization serving more than one county, 
the Secretary may not require that such organization, to be 
considered a community housing development organization for 
purposes of this Act, include as members on the organization's 
governing board low-income persons residing in each county 
served.". 
42 use 12704 
(b) TRANSITION RuLE.—For the purposes of determining compli-
"'***• 
ance with the requirements of section 104(6) of the Cranston-Gon-
zalez National Affordable Housing Act, the Secretary of Housing 
and Urban Development may provide an exception for organizations 
that meet the definition of community housing development 
organization, except for significant representation of low-income 
community residents on the board, if such organization fulfills 
such requirement within 6 months of receiving funds under title 
II of such Act or September 30,1993, whichever is sooner. 
SEC. 218. INCLUSION OF ECHO HOUSING IN DEFINITION OF HOUSING. 
Section 104(8) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12704(8)) is amended by inserting before 
the period at the end the following: "and elder cottage housing 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3761 
opportunity units that are small, free-standing, barrier-free, energy-
emcient, removable, and designed to be installed adjacent to exist-
ing 1- to 4-family dwellings". 
SEC. 219. EUGIBIUTY OF MANUFACTURED HOME OWNERS AS FIRST-
TIME HOMEBUYERS. 
Section 104(14) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12704(14)) is amended— 
(1) in subparagraph (A), by striking "and" at the end; 
(2) in subparagraph (B), by striking the period at the 
end and inserting "; and"; and 
(3) by adding at the end the following new subparagraph: 
"(C) an individual shall not be excluded from consider-
ation as a first-time homebuyer under this paragraph on 
the basis that the individual owns or owned, as a principal 
residence during such 3-year period, a dwelling unit whose 
structure is— 
"(i) not permanently affixed to a permanent 
foundation in accordance with local or other applicable 
regulations, or 
"(ii) not in compliance with State, local, or model 
building codes, or other applicable codes, and cannot 
be brought into compliance with such codes for less 
than the cost of constructing a permanent structure.". 
SEC. 220. ELIGIBILITY 
FOR 
ASSISTANCE 
AND 
CONTENTS 
OF 
STRATEGIES. 
(a) HOMELESSNESS INFORMATION.—Section 105(b)(2) of the 
Cranston-Cjronzalez National Affordable Housing Act (42 U.S.C. 
12705(b)(2)) is amended— 
(1) by inserting ", including rural homelessness," after 
"homelessness" the first place it appears; and 
(2) by inserting "including tabular representation of such 
information," after with homelessness,". 
(b) ANTIDISPLACEMENT PLAN AND ANTIPOVERTY STRATEGY.— 
Section 105(b) of the Cranston-Cjronzalez National Affordable Hous-
ing Act (42 U.S.C. 12705(b)) is amended— 
(1) by striking paragraph (14) and inserting the following: 
"(14) include a certification that the jurisdiction has in 
effect and is following a residential antidisplacement and reloca-
tion assistance plan that, in any case of any such displacement 
in connection with any activity assisted with amounts provided 
under title II, requires the same actions and provides the 
same rights as required and provided under a residential 
antidisplacement and relocation assistance plan under section 
104(d) of the Housing and Community Development Act of 
1974 in the event of displacement in connection with a develop-
ment project assisted under section 106 or 119 of such Act;". 
(2) in paragraph (15), by striking the period at the end 
and inserting "; and" and 
(3) by adding at the end the following: 
"(16) for any housing strategy submitted for fiscal year 
1994 or any fiscal year thereafter and taking into consideration 
factors over which the jurisdiction has control, describe the 
jurisdiction's goals, programs, and policies for reducing the 
number of households with incomes below the poverty line 
(as defined by the Office of Management and Budget and 
revised annually), and, in consultation with other appropriate 
106 STAT. 3762 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 12748. 
42 u s e 12704 
note. 
42 u s e 12704 
note. 
public and private agencies, state how the jurisdiction's goals, 
programs, and policies for producing and preserving affordable 
housing set forth in the housing strategy will be coordinated 
with other programs and services for which the jurisdiction 
is responsible and the extent to which thev will reduce (or 
assist in reducing) the number of households with incomes 
below the poverty line; and". 
(c) LINKAGE BETWEEN HOUSING NEED AND ALLOCATION OF 
HOUSING RESOURCES.—Section 105(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12705(b)) is amended— 
(1) by redesignating paragraphs (8) through (16) as para-
graphs (9) through (17), respectively; and 
(2) by inserting after paragraph (7) the following: 
"(8) describe how the jurisdiction's plan will address the 
housing needs identified pursuant to subparagraphs (1) and 
(2), describe the reasons for allocation priorities, and identify 
any obstacles to addressing underserved needs;". 
SEC. 221. LOCATION OF ACTIVITIES. 
Section 218(a) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12748a) is amended by inserting after 
**boundaries" the following: "or within the boimdaries of contiguous 
jurisdictions in joint projects which serve residents from both 
jurisdictions". 
SEC. 222. REGULATIONS. 
The Secretary of Housing and Urban Development shall issue 
anv final regulations necessary to implement the provisions of this 
title and the amendments made by this title not later than the 
expiration of the 180-day period beginning on the date of the enact-
ment of this Act, except as expressly provided otherwise in this 
title and the amendments made by this title. Such regulations 
shall be issued after notice and opportunity for public comment 
pursuant to the provisions of section 553 of title 5, United States 
Code (notwithstanding subsections (aX2), (bXB), and (d)(3) of such 
section). 
SEC. 223. RETROACTIVE A P P U C A T I O N OF HOME AMENDMENTS. 
The amendments made by this title shall apply to imexpended 
funds allocated under title II of the Cranston-Gonzalez National 
Affordable Housing Act in fiscal year 1992, except as otherwise 
specifically provided. 
TITLE III—PRESERVATION OF LOW-
INCOME HOUSING 
Subtitle A—Prepayment of Mortgages 
Insured Under National Housing Act 
12 u s e 4124. 
SEC. 301. AUTHORIZATION OF APPROPRIATIONS. 
Section 234 of the Housing and Community Development Act 
of 1987 (12 U.S.C. 4124) is amended to read as follows: 
•^EC. 234. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—^There are authorized to be appropriated 
for assistance and incentives authorized under this subtitle 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3763 
$638,252,784 for fiscal year 1993 and $665,059,401 for fiscal year 
1994. 
"(b) GRANTS.—Subject to approval in appropriation Acts, not 
more than $50,000,000 of the amounts made available under sub-
section (a) for fiscal year 1993, and not more than $50,000,000 
of the amounts made available under subsection (a) for fiscal year 
1994, shall be available for grants under section 221(dX2).''. 
SEC. 302. GUIDELINES FOR APPRAISALS OF PRESERVATION VALUE. 
The first sentence of section 213(c) of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 4103(c)) is amended by 
inserting before "and costs" the following: "simultaneous termi-
nation of any Federal rental assistance,". 
SEC. 303. SECOND NOTICE OF INTENT. 
Section 216(d) of the Housing and Commimity Development 
Act of 1987 (12 U.S.C. 4106(d)) is amended by adding at the end 
the following new paragraph: 
"(3) FILING WITH THE STATE OR LOCAL GOVERNMENT, TEN-
ANTS, A
N
D MORTGAGEE.—^Upon filing a second notice of intent 
under this subsection, the owner shall simultaneously file such 
notice of the intent with the chief executive officer of the 
appropriate State or local government for the jurisdiction within 
which the housing is located and with the mortgagee, and 
shall inform the tenants of the housing of the filing.". 
SEC. 304. PLAN OF ACTION. 
(a) 
SUPPORTING 
DOCUMENTATION 
REGARDING 
PLAN 
OF 
ACTION.—Section 217(aX2) of the Housing and Community Develop-
ment Act of 1987 (12 U.S.C. 4107(aX2)) is amended by inserting 
after the second sentence the following new sentence: "Each owner 
and the Secretary shall also, upon request, make available to the 
tenants of the housing and to the office of the chief executive 
officer of the appropriate State or local government for the jurisdic-
tion within which the housing is located all docimientation support-
ing the plan of action, but not including any information that 
the Secretary determines is proprietary information.". 
(b) SUPPORTING DOCUMENTATION REGARDING REVISIONS.—Sec-
tion 217(c) of the Housing and Community Development Act of 
1987 (12 U.S.C. 4107(c)) is amended in the second sentence by 
inserting before the period the following: "and make available to 
the Secretary and tenants all documentation supporting any revi-
sion, but not including any information that the Secretary deter-
mines is proprietary information". 
SEC. 305. APPROVAL OF PLAN OF ACTION. 
Section 218 of the Housing and Community Development Act 
of 1987 (12 U.S.C. 4108) is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section: 
"(b) STANDARDS AND PROCEDURE FOR WRITTEN FINDINGS.— 
"(1) STANDARDS.—A written finding under subsection (a) 
shall be based on an analysis of the evidence considered by 
the Secretanr in reaching such finding and shall contain docu-
mentation of such evidence. 
"(2) PROCEDURE AND CRITERIA.—The Secretary shall, by RegiUations. 
regulation, develop (A) a procedure for determining whether 
106 STAT. 3764 
PUBLIC LAW 102-550—OCT. 28, 1992 
the conditions under paragraphs (1) and (2) of subsection (a) 
exist, (B) requirements for evidence on which such determina-
tions are based, and (C) criteria on which such determinations 
are based.". 
SEC. 306. RECEIPT OF INCENTIVES TO EXTEND LOW-INCOME USE. 
Section 219(a) of the Housing and Community Development 
Act of 1987 (12 U.S.C. 4109(a)) is amended— 
(1) in the first sentence, by inserting after "receive" the 
following: "(for each year after the approval of the plan of 
action)"; and 
(2) by adding at the end the following new sentence: "The 
Secretary shall take such actions as are necessary to ensure 
that owners receive the annual authorized return for the hous-
ing determined under section 214(a) during the period in which 
rent increases are phased in as provided in section 222(aX2XE), 
including (in order of preference) (1) allowing the owner access 
to residual receipt accounts (pursuant to subsection (bXD of 
this section), (2) deferring remittance of excess rent payments, 
and (3) providing an increase in rents permitted under an 
existing contract under section 8 of the United States Housing 
Act of 1937 (pursuant to subsection (b)(2) of this section). . 
SEC. 307. TRANSFER TO QUALIFIED PURCHASERS. 
(a) EUGIBILITY FOR ASSISTANCE.—The matter 
preceding 
subparagraph (A) in section 220(d)(2) of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 4110(dX2)) is amended 
by inserting after "purchasers" the following: "(including all priority 
piirchasers other than resident councils acquiring under the 
homeownership program authorized by section 226)". 
(b) PROJECT OVERSIGHT.—Section 220(dX2XD) of the Housing 
and Commimity Development Act of 1987 (12 U.S.C. 4110(dX2)(D)) 
is amended by inserting before the semicolon the following: ", and 
in the case of a priority purchaser, meet project oversight costs". 
(c) RETURN.—Section 220(dX2XE) of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 4110(dX2XE)) is amended 
to read as follows: 
"(E) receive a distribution equal to an 8 percent annual 
return on any actual cash investment (from sources other 
than assistance provided under this title) made to acquire 
or rehabilitate the project;". 
(d) REIMBURSEMENT.—Section 220(dX2XF) of the Housing and 
Community Development Act of 1987 (12 U.S.C. 4110(dX2XF)) is 
amended to read as follows: 
"(F) in the case of a priority purchaser, receive a 
/ 
reimbursement of all reasonable transaction expenses asso-
ciated with the acquisition, loan closing, and implementa-
tion of an approved plan of action; and". 
(e) INCENTIVES.—Section 220(dX3XA) of the Housing and 
Community Development Act of 1987 (12 U.S.C. 4110(dX3XA)) is 
amended by striking "any residual receipts" and all that follows 
through "(b) or (c) and". 
SEC. 308. CRITERIA FOR PLAN OF ACTION INVOLVING INCENTIVES. 
(a) ELIMINATION OF WINDFALL PROFITS TEST.—Section 222 of 
the Housing and Commimity Development Act of 1987 (12 U.S.C. 
4112) is amended by striking subsection (e). 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3765 
(b) RENT ADJUSTMENTS.—Section 222(aX2XGXi) of the Housing 
and 
Community 
Development 
Act of 
1987 (12 
U.S.C. 
4112(aX2XGXi)) is amended by striking '1[>y making changes in 
the annual authorized return under section 214" and inserting 
the following: ", where the owner is a priority purchaser, to the 
portion of rent attributable to project oversight costs". 
SEC. 309. RESIDENT HOMEOWNERSHIP PROGRAM. 
Section 226(b) of the Housing and Community Development 
Act of 1987 (12 U.S.C. 4116(b)) is amended— 
(1) in paragraph (2)— 
(A) by inserting "AND LIMITATION ON CONDITIONS OF 
APPROVAL before the period at the end of the paragraph 
heading; and 
(B) by inserting after the period at the end the follow-
ing new sentence: "The Secretary may not require the 
prepayment of the mortgage on eligible low-income housing 
for the approval of a plan of action involving a homeowner-
ship program for the housing."; 
(2) in paragraph (3)— 
(A) in subparagraph (C), by striking "and" at the end; 
(B) in subparagraph (D), by striMng the period at 
the end and inserting "; and"; and 
(C) by adding at the end the following new subpara-
graph: 
"(E) the low-income affordability restrictions shall con-
tinue to apply to any rental units in the housing for any 
period during which such units remain rental units."; 
(3) in paragraph (8), by striking "Resident" and inserting 
"Except in the case of limited equity cooperatives, resident , 
and 
(4) in paragraph (10)— 
(A) by striking ", as determined by the Secretary,"; 
(B) by striking "section 222(d)" and inserting "section 
222(c)"; and 
(C) by striking the last sentence. 
SEC. 310. DEFINITION OF EUGIBLE LOW-INCOME HOUSING. 
Section 229(lXA)(i) of the Housing and Community Develop-
ment Act of 1987 (12 U.S.C. 4119(lXAXi)) is amended by striking 
"assisted under section 101 of the Housing and Urban Development 
Act of 1965 or section 8 of the United States Housing Act of 
1937" and inserting "receiving loan management assistance under 
section 8 of the United States Housing Act of 1937 due to a conver-
sion from section 101 of the Housing and Urban Development 
Act of 1965". 
SEC. 311. PREEMPTION OF STATE AND LOCAL LAWS. 
The first sentence of section 232(b) of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 4122(b)) is amended by 
stnking "and" the first place it appears and inserting ", such as 
any law or regulation". 
SEC. 312. TECHNICAL ASSISTANCE AND CAPACITY BUILDING. 
Title n of the Housing and Community Development Act of 
1987 (42 U.S.C. 4101 et seq.) is amended by adding at the end 
the following new subtitle: 
106 STAT. 3766 
PUBLIC LAW 102-550—OCT. 28, 1992 
"Subtitle C—^Technical Assistance and 
Capacity Building 
12 use 4141. 
"SEC. 251. AUTHORITY. 
**The Secretary of Housing and Urban Development may provide 
technical assistance and capacity building to further the preserva-
tion program established under this title. 
12 use 4142. 
"SEC. 262. PURPOSES. 
"The purposes of this subtitle are— 
"(1) to promote the ability of residents of eligible low-
income housing to meaningfully participate in the preservation 
process established by this title and affect decisions about the 
future of their housing; 
"(2) to promote the ability of community-based nonprofit 
housing developers and resident councils to acquire, rehabili-
tate, and competently own and manage eligible housing as 
rental or cooperative housing for low- and moderate-income 
people; and 
"(3) to assist the Secretary in discharging the obligation 
under section 220 to notify potential qualified purchasers of 
the availability of properties for sale and to otherwise facilitate 
the coordination and oversight of the preservation program 
established under this title. 
12 use 4143. 
"SEC. 253. GRANTS FOR BUILDING RESIDENT CAPACITY AND FUND-
ING PREDEVELOPMENT COSTS. 
"(a) IN GENERAL.—^Assistance made available under this section 
shall be used for direct assistance grants to resident organizations 
and community-based nonprofit housing developers and resident 
councils to assist the acquisition of specific projects (including the 
pajmaent of reasonable administrative expenses to participating 
intermediaries). 
"(b) ALLOeATiON.—30 percent of the assistance made available 
under this section shall be used for resident capacity grants in 
accordance with subsection (d). The remainder shall be used for 
predevelopment grants in connection with specific projects in accord-
ance with subsection (e). 
"(c) LIMITATION ON GRANT AMOUNTS.—A resident capacity grant 
under subsection (d) may not exceed $30,000 per project and a 
f
rant imder subsection (e) for predevelopment costs may not exceed 
200,000 per project, exclusive of any fees paid to a participating 
intermediary by the Secretary for administering the program. 
"(d) RESIDENT CAPACITY GRANTS.— 
"(1) USE.—^Resident capacity grants under this subsection 
shall be available to eligible applicants to cover expenses for 
resident outreach, incorporation of a resident organization or 
council, conducting democratic elections, training, leadership 
development, legal and other technical assistance to the board 
of directors, staff and members of the resident organization 
or council. 
"(2) ELIGIBLE HOUSING.—Grants under this subsection may 
be provided with respect to eligible low-income housing for 
which the owner has filed a notice of intent under subtitle 
B of this title or title II of the Emergency Low Income Housing 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3767 
Preservation Act of 1987 (pursuant to section 604 of the Cran-
ston-Gronzalez National Afjfordable Housing Act). 
"(e) PREDEVELOPMENT GRANTS.— 
"(1) USE.—Predevelopment grants under this subsection 
shall be made available to community-based nonprofit housing 
developers and resident councils to cover the cost of organizing 
a purchasing entity and pursuing an acquisition, including 
third party costs for training, development consulting, legal, 
appraisal, 
accounting, 
environmental, 
architectural 
and 
engineering, application fees, and sponsor's staff and overhead 
costs. 
"(2) ELIGIBLE HOUSING.—Such grants may onljr be made 
available with respect to any eligible low-income housing project 
for which the owner has filea an initial notice of intent to 
transfer the housing to a qualified purchaser in accordance 
with section 220 of this title, or has filed a notice of intent 
and entered into a binding agreement to sell the housing to 
a resident organization or nonprofit organization. 
"(3) PHASE-IN OF GRANT PAYMENTS.—Grant payments imder 
this subsection shall, be made in phases, based on performance 
benchmarks established by the Secretary in consultation with 
intermediaries selected under section 255(b). 
"(f) GRANT APPLICATIONS.—Grant applications for assistance 
under subsections (d) and (e) shall be received monthly on a rolling 
basis and approved or rejected on at least a quarterly basis by 
intermediaries selected under section 255(b). 
"(g) APPEAL.—If an application for assistance under subsections 
(d) or (e) is denied, the applicant shall have the right to appeal 
the denial to the Secretary and receive a binding determination 
within 30 days of the appeal. 
•«EC. 254. GRANTS FOR OTHER PURPOSES. 
12 USC 4144. 
'The Secretary may provide grants under this subtitle— 
"(1) to resident-controlled or community-based nonprofit 
organizations with experience in resident education and 
organizing for the purpose of conducting community, city or 
county wide outreach and training programs to identify and 
organize residents of eligible low-income housing; and 
"(2) to State and local government agencies and nonprofit 
intermediaries for the purpose of carrying out such activities 
as the Secretary deems appropriate to further the preservation 
program established under this title. 
"SEC. 255. DELIVERY OF ASSISTANCE THROUGH INTERMEDIARIES. 
12 USC 4145. 
"(a) IN GENERAL.—The Secretary shall approve and disburse 
assistance under section 253 through eligible 
intermediaries 
selected by the Secretary under subsection (D). If the Secretary 
does not receive an acceptable proposal from an intermediary offer-
ing to administer assistance under this section in a given State, 
the Secretary shall administer the program in such State directly. 
"(b) SELECTION OF ELIGIBLE INTERMEDIARIES.— 
"(1) IN GENERAL.—^The Secretary shall develop criteria to 
select eligible intermediaries, through a competitive process, 
to administer assistance under this subtitle. The process shall 
include provision for a reasonable administrative fee. 
"(2) PRIORITY.—^With respect to all forms of grants available 
under section 253, such criteria shall give priority to applica-
tions from eligible intermediaries with demonstrated expertise 
59-194 O—93 
5 : QL 3 (Pt. 5) 
106 STAT. 3768 
PUBLIC LAW 102-550—OCT. 28, 1992 
or experience with the program established under this title 
or under the Emergency Low Income Housing Preservation 
Act of 1987. 
"(3) CRITERIA.—^The criteria developed under this sub-
section shall— 
"(A) not assign any preference or priority to applica-
tions from eligible intermediaries based on their previous 
participation in administering or receiving Federal grants 
or loans (but may exclude applicants who have failed to 
perform under prior contracts of a similar nature); 
"(B) require an applicant to prepare a proposal that 
demonstrates adequate staffing, qualifications, prior experi-
ence, and a plan for participation; and 
"(C) permit an applicant to serve as the administrator 
of assistance made available under section 253(d) or (e), 
based on the applicant's suitability and interest. 
"(4) GEOGRAPHIC COVERAGE.—The Secretary may select 
more than 1 State or regional intermediary for a single State 
or region. The number of intermediaries chosen for each State 
or region may be based on the number of eligible low-income 
housing projects in the State or region, provided there is no 
duplication of geographic coverage by intermediaries in the 
administration of the direct assistance grant program. 
"(5) NATIONAL NONPROFIT INTERMEDIARIES.—National non-
profit intermediaries shall be selected to administer the assist-
ance made available under section 253 only with respect to 
States or regions for which no other eligible intermediary, 
acceptable to the Secretary, has submitted a proposal to 
participate. 
"(6) PREFERENCE.—^With respect to assistance made avail-
able under section 254, preference shall be given to eligible 
regional. State, and local intermediaries, over national nonprofit 
organizations. 
"(c) CONFLICTS OF INTEREST.—Eligible intermediaries selected 
xmder subsection (b) to disburse assistance under section 253 shall 
certify that they will serve only as delegated program administra-
tors, charged with the responsibility for reviewing and approving 
grant 
applications 
on 
behalf 
of the 
Secretary. 
Selected 
intermediaries shall— 
"(1) establish appropriate procedures for grant administra-
tion and fiscal management, pursuant to standards established 
by the Secretary; and 
"(2) receive a reasonable administrative fee, except that 
they may not provide other services to grant recipients with 
respect to projects that are the subject of the grant application 
and may not receive pajrment, directly or indirectly, from the 
proceeds of grants they have approved. 
"(d) DEFINITION OF ELIGIBLE INTERMEDIARIES.—For purposes 
of this section, the term 'eligible intermediary' means a State, 
regional, or national organization (including a quasi-public organiza-
tion) or a State or local housing agency that— 
"(1) has as a central purpose the preservation of existing 
affordable housing and the prevention of displacement; 
"(2) does not receive direct Federal appropriations for 
operating support; 
"(3) in the case of a national nonprofit organization, has 
been in existence for at least 5 years prior to the date of 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3769 
application and has been classified by the Internal Revenue 
Service as an exempt organization under section 501(cX3) of 
the Internal Revenue Code of 1986; 
"(4) in the case of a regional or State nonprofit organization, 
has been in existence for at least 3 years prior to the date 
of ai}plication and has been classified by the Internal Revenue 
Service as an exempt organization under section 501(cX3) of 
the Internal Revenue Code of 1986 or is otherwise a tax-
exempt entity; 
"(5) has a record of service to low-income individuals or 
community-based nonprofit housing developers in multiple 
communities and, with respect to intermediaries administering 
assistance under section 253, has experience with the allocation 
or administration of grant or loan funds; and 
"(6) meets standards of fiscal responsibility established by 
the Secretary. 
"SEC. 256. DEFINITIONS. 
12 USC 4146. 
"For purposes of this subtitle— 
**(1) the term 'community-based nonprofit housing devel-
oper* means a nonprofit community development corporation 
that— 
"(A) has been classified by the Internal Revenue Serv-
ice as an exempt organization imder section 501(c)(3) of 
the Internal Revenue Code of 1986; 
"(B) has been in existence for at least 2 years prior 
to the date of the grant application; 
"(C) has a record of service to low- and moderate-
income people in the community in which the project is 
located; 
"(D) is organized at the neighborhood, city, county 
or multi-coimty level; and 
"(E) in the case of a corporation acquiring eligible 
housing under subtitle B of tnis title, agrees to form a 
purchaser entity that conforms to the definition of a 
community-based nonprofit organization under such sub-
title and agrees to use its best efforts to secure majoritv 
tenant consent to the acquisition of the project for whicn 
grant assistance is requested; and 
"(2) the terms 'eligible low-income housing*, 'nonprofit 
organization', 'owner*, and 'resident council* have uie meanings 
given such terms in section 229. 
"SEC. 257. FUNDING. 
12 USC 4147. 
"The Secretary shall use not more than $25,000,000 of the 
amoimts made available under section 234(a) for fiscal year 1993, 
and not more than $25,000,000 of the amounts made available 
under section 234(a) for fiscal year 1994, to carry out this subtitle. 
Of any amounts made available to carry out this subtitle in any 
appropriation Act, 90 percent shall be set aside for use in accordance 
with section 253 and 10 percent shall be set aside for use in 
accordance with subsection 254.**. 
SEC. 313. TRANSITION PROVISIONS. 
(a) EFFECT OF ELEcnoN.—Section 604(a) of the Cranston-Gon-
zalez National Affordable Housing Act (12 U.S.C. 4101 note) is 
amended by adding at the end the following sentence: "An owner 
that electe to be subject to the provisions of the Emergency Low 
106 STAT. 3770 
PUBLIC LAW 102-550—OCT. 28, 1992 
Income Housing Preservation Act of 1987 shall comply with section 
212(b), section 217(a)(2), and section 217(c) of the Low-Income Hous-
ing Preservation and Resident Homeownership Act of 1990.**. 
(b) CHANGES TO PROVISIONS OF 1987 ACT.—Section 604(c) of 
the Cranston-Cjonzalez National Affordable Housing Act (12 U.S.C. 
4101 note) is amended by adding at the end the following new 
sentence: ' ^ i t h respect to housing for which such an election is 
made— 
''(1) in making incentives under section 224 of such Act 
available to such housing, the Secretary— 
"(A) shall, for approvable plans of action, provide assist-
ance sufficient to enable a nonprofit organization that has 
purchased or will purchase an eligible low income housing 
project to meet project oversight costs; and 
"(B) may not refuse to offer incentives referred to in 
such section to any owner who filed a notice of intent 
under section 222 of such Act before October 15, 1991, 
based solely on the date of filing of the plan of action 
for the housing; and 
"(2) the provisions of section 233(lXAXi) of such Act shall 
not apply, and the term 'eligible low income housing* shall, 
for purposes of such Act, shall include housing financed by 
a loan or mortgage that is insured or held by the Secretary 
or a State or State agency under section 221(dX3) of the 
National Housing Act and receiving loan management assist-
ance under section 8 of the United States Housing Act of 
1937 due to a conversion from section 101 of the Housing 
and Urban Development Act of 1965.**. 
12USC4101 
SEC. 314. CONDITIONS OF ASSISTANCE. 
j 
^°^' 
(a) EUHPA OF 1987.—The Secretary may not require, as a 
condition of eligibility for or receipt of technical assistance made 
available under the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 1992 (Public Law 102-139) (including any phase of a grant), 
that an applicant participate in a training program sponsored or 
conducted by the Department of Housing and Urban Development 
for acquisition of eligible low income housing under the provisions 
of the Emergency Low Income Housing Preservation Act of 1987, 
and may not provide any preference or priority for such assistance 
for any applicant based on participation in such a program. 
(b) LiHPRHA OF 1990.—^The Secretarv may require, as a condi-
tion of eligibility for or receipt of technical assistance made available 
under the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1992 
(Public Law 102-139) (including any phase o
f
^ a grant), that an 
applicant participate in a training program sponsored or conducted 
by the Department of Housing and Urban Development for acquisi-
tion of eligible low-income housing under this title, and may provide 
preference or priority for such assistence for applicante based on 
participation in such a program, but only if the program is made 
available on a nationwide basis not later than March 1, 1993. 
Regulations. 
SEC. 315. DELEGATED RESPONSIBIUTY TO STATE AGENCIES. 
12 use 4117 
note. 
The Secretary of Housing and Urban Development shall issue 
interim regulations implementing section 227 of the Housing and 
Community Development Act of 1987 (as amended by section 601(a) 
of the Cranston-Gonzalez National Affordable Housing Act) not 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3771 
later than the expiration of the 30-day period beginning on the 
date of the enactment of this Act, wMch shcJl iusa effect upon 
issuance. The Secretary shall issue final regulations implementing 
such section 227 after notice and opportunity for public comment 
regarding the interim regulations, pursuant to the provisions of 
section 553 of title 5, United States Code (notwithstanding sub-
sections (aX2), (bXB), and (dX3) of such section). The duration 
of the period for public comment shall not be less than 60 days, 
and the final regulations shall be issued not later than the expira-
tion of the 60-aay period beginning upon the conclusion of the 
conunent period and shall take effect upon issuance. 
SEC. 316. INSURANCE FOR SECOND MORTGAGE FINANCING. 
(a) TERMS.—Section 241(f) of the National Housing Act (12 
U.S.C. 1715z-6(f)) is amended— 
(1) in paragraph (2XBXi), by inserting after "equal to" 
the following: 'rhe amount of rehabilitation costs required by 
the plan of action eind related charges and"; 
(2) in paragraph (3XB), by inserting after "1990" the follow-
ing: "and the amount of rehabilitation costs required by the 
plan of action and related charges and"; 
(3) in paragraph (5)— 
(A) by redesignating subparagraph (B) as subpara-
graph (C); and 
(B) by striking subparagraph (A) and inserting the 
following new subparagraphs: 
"(AXi) in the case of equity loans, have a term not to exceed 
40 years and amortization provisions which will, to the extent 
practicable, support the loan amount authorized under paragraph 
(2XB); and 
"(ii) in the case of acquisition loans, have a term of not less 
than 40 years; and 
"(B) bear interest at such rate as may be agreed upon by 
the mortgagor and mortgagee and be secured in such manner 
as the Secretary may reciuire; and"; 
(4) by striking paragraph (6); and 
(5) by redesignating paragraphs (7) through (9) as para-
graphs (6) through (8), respectively. 
(b) RENEGOTIATION.—Section 241(f) of the National Housing 
Act (12 U.S.C. 17z-6(f)) is amended by adding at the end the 
following new paragraph: 
"(10) The Secretar}^ shall renegotiate and modify the terms 
of an equity loan insuired under this subsection, at the request 
of the owner of the project for which the loan is made, if— 
"(1) the loan was made during the period beginning 30 
days before the date of the enactment of the Housing and 
Community Development Act of 1992 and ending 90 days after 
such date of enactment under this subsection; ana 
"(2) the lo£in wsis made pursuant to a plan of action under 
the provisions of the Emergency Low Income Housing Preserva-
tion Act of 1987 and accepted by the Secretary for processing 
in December 1991.". 
(c) REGULATIONS.—^Not later than the expiration of the 45-
day period beginning on the date of the enactment of this Act, 
the Secretary shall issue regulations implementing section 241(fXl) 
of the National Housing Act. The regulations shall not be subject 
12 use 1715Z-6. 
12 u s e 1715Z-6 
note. 
106 STAT. 3772 
PUBLIC LAW 102-550—OCT. 28, 1992 
to the requirements of subsections (b) and (c) of section 553 of 
title 5, United States Code. 
SEC. 317. TECHNICAL AMENDMENTS. 
(a) 
LOW-INCOME 
HOUSING 
PRESERVATION AND 
RESIDENT 
HOMEOWNERSHIP ACT OF 1990.—The Housing and Community 
Development Act of 1987 (12 U.S.C. 4101 et seq.) is amended— 
12 use 4105. 
(1) in section 215(aX2), by inserting "Housing" after **United 
States"; 
12 use 4106. 
(2) in section 216(bX4), by striking "exceeds" and inserting 
"exceed"; 
1
2 use 4111. 
(3) in the second sentence of section 221(c), by striking 
"that" and inserting "than"; 
12 use 4112. 
(4) in section 222— 
(A) in subsection (aX2XA), by striking "low income" 
and inserting "low-income"; 
^ 
(B) in subsection (cX2), by striking "an hearing" and 
inserting "a hearing"; 
(C) in subsection (dX2XB), by inserting "the" after 
"that"; and 
(D) in subsection (dX2XCXii), by inserting "in" before 
"default"; 
12 use 4119. 
(5) in section 229(11XA), by striking "resident" and insert-
ing "residents"; and 
12 use 4121. 
(6) in section 231(b), by striking "section 222(d)" and insert-
ing "section 222(c)". 
(b) 
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING 
ACT.^-Section 613(bX2) of the Cranston-Gonzalez National Afford-
able Housing Act (12 U.S.C. 4125(bX2)) is amended by striking 
"section 224(e)" and inserting "section 222(d)". 
(c) NATIONAL HOUSING ACT.—Section 241(f) of the National 
Housing Act (12 U.S.C. 1715z-6(f)) is amended— 
(1) in paragraph (2XBXii), by striking "and" at the end; 
and 
(2) in paragraph (7), by striking "acquisiton loan" and 
inserting "acquisition loan". 
12 use 4109 
SEC. 318. STUDY OF PROJECTS ASSISTED UNDER FLEXIBLE SUBSIDY 
*»ote. 
PROGRAM. 
(a) STUDY.—^The Secretary shall conduct a study of housing 
projects that (1) are assisted under section 236 of the National 
Housing Act or the proviso of section 221(dX5) of such Act, and 
(2) have received or are receiving assistance under section 201 
of the Housing and Commimity Development Amendments of 1978, 
to determine the cost of providing such projects with incentives 
under the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990. The study shall examine any projects 
portions of which assisted under such section 236 that are assisted 
primarily by State agencies. 
(b) REPORT.—^The Secretary shall submit a report to the Con-
gress regarding any findings and conclusions of the study under 
subsection (a) not later than the expiration of the 1-year period 
beginning on the date of the enactment of this Act. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3773 
Subtitle B—Other Preservation Provisions 
SEC. 331. EUGIBILnY OF PUBUC MORTGAGORS FOR SECTION 236 
MORTGAGE INSURANCE. 
Section 236qX4XA) of the National Housing Act (12 U.S.C. 
1715z-l(jX4XA)) is amended by striking "private". 
SEC. 332. REGULATIONS. 
12 USC 4101 
Except as otherwise provided in this title, the Secretary of "° ' 
Housing and Urban Development shall issue interim regulations 
implementing this title ana the amendments made by this title 
not later than the expiration of the 90-day period beginning on 
the date of the enactment of this Act, which shall take effect 
upon issuance. The Secretary shall issue final regulations 
implementing this title and the amendments made by this title 
after notice and opportunity for public comment regarding the 
interim regulations, pursuant to the provisions of section 553 of 
title 5, United States Code (notwithstanding subsections (aX2), 
(bXB), and (dX3) of such section). The duration of the period for 
public comment shall not be less than 60 days, and the final 
regulations shall be issued not later than the expiration of the 
60-day period beginning upon the conclusion of the comment period 
and snail take effect upon issuance. 
TITLE 
IV—MULTIFAMILY 
HOUSING 
PLANNING AND INVESTMENT STRATE-
GIES 
SEC. 401. DEFINITIONS. 
12 USC 1715z-la 
For purposes of this title: 
(1) COVERED MULTIFAMILY HOUSING PROPERTY.—The term 
"covered multifamily housing property" means any housing— 
(A) that is— 
(i) reserved for occupancy by very low-income 
elderly persons pursuant to section 202(dXl) of the 
Housing Act of 1959; 
(ii) assisted under the provisions of section 202 
of the Housing Act of 1959 (as such section existed 
before the effectiveness of the amendment made by 
section 801(a) of the Cranston-Cjonzalez National 
Affordable Housing Act); 
(iii) fincmced by a loan or mortgage insured, 
assisted, or held by the Secretary or a State or State 
agency under section 236 of the National Housing Act; 
or 
(iv) financed by a loan or mortgage insured or 
held by the Secretary pursuant to section 221(dX3) 
of the National Housing Act; and 
(B) that is not eligible for assistance under— 
(i) the Low-Income Housing {^reservation and Resi-
dent Homeownership Act of 1990; 
(ii) the provisions of the Emergency Low Income 
Housing Preservation Act of 1987 (as in effect imme-
106 STAT. 3774 
PUBLIC LAW 102-550—OCT. 28, 1992 
diately before the date of the enactment of the Cran-
ston-Gonzalez National Affordable Housing Act); or 
(iii) the HOME Investment Partnerships Act. 
(2) COVERED MULTIFAMILY HOUSING PROPERTY FOR THE 
ELDERLY.—^Hie term "covered multifamily housing property for 
the elderly^ means any multifamily housing project that was 
designed or designated to serve, or is serving, elderly persons 
or families and is assisted imder a program administered by 
the Secretary. 
(3) SECRETARY.^The term "Secretary" means the Secretary 
of Housing and Urban Development. 
12 use 1715z-la 
SEC. 402. REQUIRED SUBMISSION. 
"° • 
(a) IN GENERAL.—^The owner of each covered multifamily hous-
ing property, and the owner of each covered multifamily housing 
propertv for the elderly, shall submit to the Secretary of Housing 
and Urban Development a comprehensive needs assessment of the 
property under this title. 
(b) TIMING.—^The Secretary shall reauire the owners of approxi-
mately one-third of the aggregate number of covered multifamily 
housing properties, and the owners of approximately one-third of 
the aggregate number of covered multiiamily housing properties 
for the elderly, to submit the comprehensive needs assessments 
under this section for the properties in each of fiscal years 1993, 
1994, and 1995, in a manner designed to ensure that upon the 
conclusion of fiscal year 1995 the assessments for all such properties 
have been submitted. 
12 use 1715z-la 
SEC. 403. CONTENTS. 
(a) IN GENERAL.—^Each comprehensive needs 
assessment 
submitted under this title for a covered multifamily housing prop-
erty or a covered multifamily housing property for the elderly 
shall contain the following information witn respect to the property: 
(1) A description of any financial or other assistance cur-
rently needed for the property to ensure that the property 
is maintained in a livable condition and to ensure the financial 
viability of the project. 
(2) A description of any financial or other assistance for 
the property that, at the time of the assessment, is reasonably 
foreseeable as necessary to ensure that the property is main-
tained in a livable condition and to ensure the financial viability 
of the project, during the remaining useful life of the property. 
(3) A description of anv resources available for meeting 
the current and future needs of the property described under 
paragraphs (1) and (2) and the likelihood of obtaining such 
resources. 
(4) A description of any assistance needed for the property 
under programs administered by the Secretary. 
(b) PROJECTS FOR THE ELDERLY.—^Each comprehensive needs 
assessment for a covered multifamily housing property for the 
elderly shall include, in addition to the information required under 
subsection (a), the following information with respect to the 
property: 
(1) A description of the supportive service needs of such 
residents and any supportive services provided to elderly resi-
dents of the property. 
(2) A description of any modernization needs and activities 
for the property. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3775 
(3) A description of any personnel needs for the property. 
SEC. 404. SUBMISSION AND REVIEW. 
12 USC 1715z-la 
(a) FORM.—^The Secretaiv shall establish the form and manner 
of submission of the comprehensive needs assessments under tiiis 
title. 
(b) RESIDENT REVIEW.—^The Secretary shall require each owner 
of a covered multifamily housing property and each owner of a 
covered multifamily housing property for the elderly to make avail-
able to the residents of the property the comprehensive needs 
assessment that is to be submittea to the Secretai^. The Secretaipr 
shall require each owner to provide for such residents to submit 
comments and opinions regarding the assessment to the owner 
before the submission of the assessment. 
(c) STATE HOUSING FINANCE AGENCY REVIEW.—TO the extent 
that a covered multifamily housing proi>erty or a covered multifam-
ily housing property for the elderly is nnanced or assisted by 
a State housing finance agency (as such term is defined in section 
802 of the Housing and Community Development Act of 1974), 
the Secretary shall require the owner of the property to submit 
the comprehensive neeofs assessment for the property to tiie State 
housing finance agency upon submitting the assessment to the 
Secretary. 
(d) R
E
V
I
E
W
.
—
^
T
h
e Secretary shall review each comprehensive 
needs assessment and shall approve the assessment before the 
expiration of the 90-day period beginning upon the receipt of the 
assessment, unless the Secretary determmes that the assessment 
has not been provided in a substantially complete manner. 
(e) COST OF PREPARATION OF STRATEGY.—The Secretary shall 
consider any costs relating to preparing a comprehensive needs 
assessment under this title for a covered multifamily housing prop-
erty that do not exceed $5,000 for the property as an ehgible 
project expense for the property. The Secretary shall provide that 
an owner may not increase the rental charge for any unit in 
a covered multlfainily housing property to provide for the cost 
of preparing a comprehensive neeos assessment. 
(f) NOTICE.—^llie Secretary shall immediately notify each owner 
submitting a comprehensive needs assessment (and any State hous-
ing finance agency to which the owner has submitted an assessment 
imder subsection (d)) of the approval or disapproval of the assess-
ment upon making such determination. Within 30 days after dis-
approving any assessment, the Secretary shall inform the owner 
in writing of tne reasons for disapproval. The Secretary shall require 
any owner whose assessment is disapproved to resubmit an 
amended assessment not later than 30 days after the owner receives 
the notice of disapproval. 
(g) ANNUAL REVIEW AND REPORT OF FUNDING AND TARGETING 
F
O
R COVERED MULTIFAMILY PROPERTIES FOR THE ELDERLY.— 
(1) REVIEW.—^The Secretary shall annually conduct a com-
prehensive review o
f
— 
(A) the funding levels required to fully address the 
needs of covered multifamily housing properties for the 
elderly identified in the comprehensive needs assessments 
under section 403(b), specifically identifying any expenses 
necessary to make substantial repairs and add features 
(such as congregate dining facilities and commercial kitch-
ens) resulting fimm development of a property in compliance 
106 STAT. 3776 
PUBLIC LAW 102-550—OCT. 28, 1992 
with cost-containment requirements established by the 
Secretary; 
(B) the adequacy of the geographic targeting of 
resources provided unaer programs of the Department with 
respect to covered multifamuy housing properties for the 
elderly, based on information acquired pursuant to section 
403(b); and 
(C) local housing markets throughout the United 
States, with respect to the need, availability, and cost 
of housing for elderly persons and families, which shall 
include review of any information and plans relating to 
housing for elderly persons and families included in com-
prehensive housing affordability strategies submitted by 
jurisdictions pursuant to section 105 of the Cranston-Gon-
zalez National Affordable Housing Act. 
(2) REPORT.—^The Secretary of Housing and Urban Develop-
ment shall submit a report to the Congress annually describing 
the results of the annual comprehensive needs assessments 
under section 402 for covered multifamily housing properties 
for the elderly and the annual review conducted under para-
graph (1) of this subsection, which shall contain a description 
of the methods used by project owners and by the Secretary 
to acquire the information described in section 402(b) and any 
findings and recommendations of the Secretary pursuant to 
the review. 
SEC. 405. TROUBLED MULTIFAMILY HOUSING. 
(a) MANDATORY ELEMENTS.—Section 201(d) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1715z-
la(d)) is amended— 
(1) in paragraph (5), by striking "and"; 
(2) in paragraph (6), by striking the period and inserting 
a semicolon; and 
(3) by adding at the end the following new paragraphs: 
"(7) all reasonable attempts have been made to take all 
appropriate actions and provide suitable housing for project 
residents; 
"(8) the project has a feasible plan to involve the residents 
in project decisions; 
"(9) the affirmative fair housing marketing plan meets 
applicable requirements; and 
"(10) the owner certifies that it will comply with various 
equal opportunity statutes.". 
(b) SELECTION CRITERIA.— 
(1) REPEAL OF SECTION 20i(kX4).—Section 201(k)(4) of the 
Housing and Community Development Amendments of 1978 
(12 U.S.C. 1715z-la(kX4)) is repealed. 
(2) NEW CRITERIA.—Section 201 of the Housing and 
Community Development Amendments of 1978 is amended by 
adding at the end the following new subsection: 
"(n)(l) The Secretary shall award assistance under this section 
to eligible projects on the basis of the following selection criteria: 
"(A) The extent to which the project presents an imminent 
threat to the life, health, and safety of project residents. 
"(B) The extent to which the project is financially troubled. 
"(C) The extent of physical improvements needed by the 
project as evidenced by the comprehensive needs assessment 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3777 
submitted in accordance with title IV of the Housing and 
Community Development Act of 1992. 
"(D) The extent to which there is evidence that there will 
be significant opportimities for residents (including a resident 
council or resident management corporation, as appropriate) 
to be involved in management of the project (except that this 
paragraph shall have no appUcation to projects that are owned 
as cooperatives). 
"(£) The extent to which there is evidence that the project 
owner has provided competent management and complied with 
all regulatory and administrative instructions (including such 
instructions with respect to the comprehensive servicmg of 
multifamily projects as the Secretary may issue). 
"(F) Such other criteria as the Secretary may specify by 
regulation or in a Federal Register notice of fund availability. 
"(2) Eligible projects that have federally insured mortgages 
in force are to be selected for award of assistance under this 
section before any other eligible project.". 
(c) 
LOW-INCOME 
AFFORDABIUTY 
RESTRICTIONS.—Section 
201(1X2XD) of the Housing and Commimity Development Amend-
ments of 1978 (12 U.S.C. 1715z-la(lX2XD)) is amended by adding 
at the end the following: "The Secretary mav require owners receiv-
ing assistance for capital improvements under this section to retain 
the housing as housing affordable for very low-income families 
or persons, low-income families or persons and moderate-income 
families or persons for the remaining useful life of the housing. 
For purposes of this section, the term 'remaining useful life' means, 
with respect to housing assisted imder this section, the period 
diuring which the physical characteristics of the housing remain 
in a condition suitable for occupancy, assuming normal maintenance 
and repairs are made and major systems and capital components 
are replaced as becomes necessary.". 
(d) EXCLUSIVITY OF ASSISTANCE.—Section 201 of the Housing 
and Community Development Amendments of 1978, as amended 
by this section, is furtner amended by adding at the end the 
following new subsection: 
"(o) Projects receiving assistance imder this section are not 
eligible for prepayment incentives under the Emergency Low-
Income Housing Preservation Act of 1987 or the Low-Income Hous-
ing Preservation and Resident Homeownership Act of 1990. Projects 
receiving financial assistance under such Acts are not eligible for 
assistance under this section.". 
(e) OWNER CONTRIBUTIONS.—Section 201(kX2) of the Housing 
and Commimity Development Amendments of 1978 is amended— 
(1) in subparagraph (B), bv striking "and"; 
(2) in subparagraph (C), by striking the period and insert-
ing "; and"; ana 
(3) by adding at the end the foUovdng new subparagraph: 
"(D) the Secretary shall give owners credit for advances 
made to the project during a 3-year period prior to the 
application for assistance.". 
(f) COORDINATION OF ASSISTANCE.—Section 201 of the Housing 
and Commimity Development Amendments of 1978, as amended 
by this section, is further amended by adding at the end the 
following new subsection: 
"(p) The Secretary shall coordinate the allocation of assistance 
imder this section with assistance made available imder section 
106 STAT. 3778 
PUBLIC LAW 102-550—OCT. 28, 1992 
8(v) of the United States Housing Act of 1937 and section 203 
of this Act to enhance the cost effectiveness of the Federal response 
to troubled multifamily housing.". 
SEC. 406. FLEXIBLE SUBSIDY PROGRABl 
Section 201(dX6) of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z-la(dX6)) is amended by 
inserting before the period at the end the following: "; and except 
that the Secretary snail review and approve or disapprove each 
plan not later than the expiration of tne 30-day perioa beginning 
upon the date of submission of the plan to the Secretary by the 
owner, but if the Secretary fails to inform the owner of approval 
or disapproval of the plan within such period the plan shall be 
considered to have been approved". 
SEC. 407. CAPACITY STUDY. 
Section 110(a) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12710(a)) is amended— 
(1) by striking ", and"; and 
(2) by striking the period at the end and inserting the 
following: ", and the ability to respond to areas identified as 
'material weaknesses' by the Office of the Inspector General 
in financial audits or other reports.". 
SEC. 408. FLEXIBLE SUBSIDY PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 201(jX5) of 
the Housing and Community Development Amendments of 1978 
(12 U.S.C. 1715z-la(iX5)) is amended to read as follows: 
"(5) There is authorized to be appropriated for assistance imder 
the flexible subsidy fund not to exceed $52,200,000 for fiscal year 
1993 and $54,392,400 for fiscal year 1994.". 
(b) USE OF SECTION 236 RENTAL ASSISTANCE FUND AMOUNTS 
F
O
R FLEXIBLE SUBSIDY PAYMENTS.—Section 236(0(3) of the National 
12USC1715Z-1. Housing Act (12 U.S.C. 1715z-la(0(3)) is amended by striking 
"September 30,1992" and inserting "September 30,1994". 
TITLE V—MORTGAGE INSURANCE AND 
SECONDARY MORTGAGE MARKET 
Subtitle A—^FHA Mortgage Insurance 
Programs 
SEC. 50L 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 insurance, to the 
authority provided in this Act, and to the limitation in subsection 
(a), the Secretary shall enter into commitments to insure mortgages 
imder this Act with an 
aggregate principal 
amount of 
$65,905,824,960 during fiscal year 1993 and $68,673,868,600 during 
fiscal year 1994.". 
SEC. 502. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD. 
Section 202(b) of the National Housing Act (12 U.S.C. 1708(b)) 
is amended by adding at the end the following new paragraph: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3779 
"(11) The Board shall terminate on January 1, 1995.". 
SEC. SOS. MAXIMUM MORTGAGE AMOUNT. 
(a) IN GENERAL.—The first sentence of section 203(bX2) of 
the National Housing Act (12 U.S.C. 1709(bX2)) is amended to 
read as follows: "Involve a principal obligation (including such initial 
service charges, appraisal, inspection, and other fees as the Sec-
retary shall approve) in an amount— 
"(A) not to exceed the lesser of— 
"(i) in the case of a 1-family residence, 95 percent 
of the median 1-family house price in the area, as deter-
mined by the Secretary; in the case of a 2-family residence, 
107 percent of such median price; in the case of a 3-
family residence, 130 percent of such median price; or 
in the case of a 4-family residence, 150 percent of such 
median price; or 
"(ii) 75 percent of the dollar amoimt limitation deter-
mined under section 305(aX2) of the Federal Home Loan 
Mortgage Corporation Act (as in efTect on September 30, 
1992) for a residence of the applicable size; 
except that the applicable dollar amount limitation in effect 
for any area imder this subparagraph (A) may not be less 
than tne dollar amount limitation in effect imder this section 
for the area on May 12,1992; and 
"(B) except as otherwise provided in this paragraph (2), 
not to exceed an amount equal to the sum of— 
"(i) 97 percent of $25,000 of the appraised value of 
the property, as of the date the mortgage is accepted for 
insurance; 
"(ii) 95 percent of such value in excess of $25,000 
but not in excess of $125,000; and 
"(iii) 90 percent of such value in excess of $125,000.". 
(b) ApPLiCABiLiry.—The amendment made by subsection (a) 12 use 1709 
shall apply only to mortgages executed on or £ifter January 1, 
1993. 
(c) CONFORMING AMENDMENTS.— 
(1) TITLE I—LOANS.—Notwithstending any other provision 
of law, section 2(bXl) of the National Housing Act (12 U.S.C. 
1703(bXl)) is amended by striking subparagraphs (C), (D), and 
(E) and inserting the following new subparagraphs: 
"(C) $48,600 if made for the purpose of financing the 
purchase of a manufactured home; 
"(D) $64,800 if made for the purpose of financing the 
{)urcha8e of a manufactured home and a suitebly developed 
ot on which to place the home; and 
"(E) $16,200 if made for the purpose of financing the 
purchase, by an owner of a manufactured home which 
is the principal residence of that owner, of a suitebly devel-
oped lot on which to place that manufactured home, and 
if the owner certifies that he or she will place the manufac-
tured home on the lot acquired with such loan within 
6 months afi^er the date of such loan.". 
(2) HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY 
HOMEOWNERS.—Section 255(g) of the National Housing Act (12 
U.S.C. 1715z-2(Kg)) is amended by striking "for a 1-family 
residence" and inserting "for l-feunily residences in the area 
note. 
106 STAT. 3780 
PUBLIC LAW 102-550—OCT. 28, 1992 
in which the dwelling subject to the mortgage under this section 
is located". 
(3) RTC AFFORDABLE HOUSING PROGRAM.—Subparagraphs 
(DXii) and (GXH) of section 21A(cX9) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(cX9)) are each amended by 
striking "the applicable dollar amoimt" and all that follows 
through "areas)" and inserting the following: "$67,500 in the 
case of a 1-family residence, $76,000 in the case of a 2-family 
residence, $92,000 in the case of a 3-family residence, and 
$107,000 in the case of a 4-family residence". 
(4) FDIC AFFORDABLE HOUSING PROGRAM.—Paragraphs 
(4XB) and (7XB) of section 40(p) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831q(p)) are each amended to read as 
follows: 
"(B) that has an appraised value that does not exceed 
the amount provided in section 203(bX2XA) of the National 
Housing Act except that such amount shall not exceed 
$101,250 in the case of a 1-family residence, $114,000 
in the case of a 2-family residence, $138,000 in the case 
of a 3-family residence, and $160,000 in the case of a 
4-family residence." 
(d) GAO STUDY ON F H A LOAN LIMITS AND G S E CONFORMING 
LOAN LIMITS.— 
Reports. 
(1) IN GENERAL.—^The Comptroller General of the United 
States shall submit to the Congress, on or before September 
1, 1993, a report which evaluates the methodology used to 
establish the annual conforming loan limits for the secondary 
market, pursuant to section 305(aX2) of the Federal Home 
Loan Mortgage Corporation Act, as well as the loan limits 
adjustments utilized under the single family mortgage insur-
ance program under section 203 of the National Housing Act. 
(2) CONTENTS.—^The report shall— 
(A) evaluate the methodology used to determine the 
annual adjustment to the conforming loan limit, including 
the accuracy of using the Mortgage Interest Rate Survey 
(MIRS) in determining the median home sales price each 
year; 
(B) recommend any legislative or administrative 
changes to ensure that the conforming loan limits 
accurately reflect market dynamics; 
(C) assess the long-term consequences of indexing the 
mortgage limits utilized under the FHA section 203(b) sin-
gle lamily mortgage insurance program to the annual 
a(^ustments to the conforming loan limits for the secondary 
market; 
(D) assess the impact of such annual adjustments on 
the ability of the FHA single family insurance program 
to serve low and moderate income borrowers; and 
(E) recommend alternative measures that could be 
employed to ensure that FHA can meet the needs of low 
and moderate income families in low and high cost areas 
of the country. 
SEC. 504. FHA ANNUAL REPORT. 
Section 203 of the National Housing Act (12 U.S.C. 1709) 
is amended by adding at the end the following: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3781 
**(v) ANNUAL REPORT.—The Secretary of Housing and Urban 
Development shall submit to the Congress an annuied report on 
the single family mortgage insurance program under this section. 
Each report shall set forth— 
''(1) an analysis of the income groups served by the single 
family insurance program, including— 
"(A) the percentage of borrowers whose incomes do 
not exceed 100 percent of the median income for the area; 
"(B) the percentage of borrowers whose incomes do 
not exceed 80 percent of the median income for the area; 
and 
"(C) the percentage of borrowers whose incomes do 
not exceed 60 percent of the median income for the area; 
"(2) an analysis of the percentage of minority borrowers 
annually assisted by the program; the percentage of central 
city borrowers assisted and the percentage of rural borrowers 
assisted by the program; 
"(3) the extent to which the Secretary in canying out 
the program has employed methods to ensure that needs of 
low and moderate income families, imderserved areas, and 
historically disadvantaged groups are served by the program; 
and 
"(4) the current impediments to having the program serve 
low and moderate income borrowers; borrowers from central 
city areas; borrowers from rural areas; and minority borrowers. 
SEC. 505. MAXIMUM PRINCIPAL OBUGATION OF MORTGAGES FOR 
VETERANS. 
(a) IN GENERAL.—^The first sentence of the last imdesignated 
paragraph of section 203(bX2) of the National Housing Act (12 
U.S.C. 1709(bX2)) is amended by striking "Notwithstanding anv 
other provision of this paragraph," and inserting "Except with 
respect to mortgages executed by mortgagors who are veterans,". 
(b) TECHNICAL AMENDMENT.—Section 203(bX9) of the National 
Housing Act (12 U.S.C. 1709(bX9)) is amended by striking "(except 
in a case to which the next to the last sentence of paragraph 
(2) applies)" and inserting "(except with respect to a mortgage 
executed by a mortgagor who is a veteran)". 
SEC. 506. PREPURCHASE COUNSELING REQUIREMENT. 
(a) IN GENERAL.—Section 203(bX2) of the National Housing 
Act (12 U.S.C. 1709(bX2)) is amended by inserting at the end 
the following new undesignated paragraph: 
"Notwithstending any other provision of this paragraph, 
the Secretary may not insure, or enter into a commitment 
to insure, a mortgage under this section that is executed by 
a first-time homebuyer and that involves a principal obligation 
(including such initial service charges, appraisal, inspection, 
and other fees as the Secretary shall approve) in excess of 
97 percent of the appraised value of the property unless the 
mortgagor has completed a program of counseling with respect 
to the responsibilities and financial management involved in 
homeownership that is approved by the Secretory; except that 
the Secretory may, in the discretion of the Secretary, waive 
the applicability of this requirement.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 1
2 use 1709 
shall apply to mortgages for which commitmento for insurance "^^-
106 STAT. 3782 
PUBLIC LAW 102-550—OCT. 28, 1992 
are issued after the expiration of the 12-month period beginning 
on the date of the enactment of this Act. 
SEC. 507. AUTHORITY TO DECREASE INSURANCE PREMIUM CHARGES. 
(a) PERMANENT PROVISIONS.—Section 203(cX2) of the National 
Housing Act (12 U.S.C. 1709(cX2)) is amended— 
(1) in subparagraph (A), by striking "equal to" and inserting 
"not exceeding"; and 
(2) in subparagraph (B)— 
(A) in the matter preceding clause (i), by striking "equal 
to" and inserting "not exceeding"; and 
(B) in clause (ii), by strij^ng "equal to 0.55 percent" 
and inserting "not exceeding 0.55 percent". 
(b) TRANSITION PROVISIONS.—Section 2103(b) of the Omnibus 
Budget Reconciliation Act of 1990 (12 U.S.C. 1709 note) is 
amended— 
(1) in paragraph (1)— 
(A) in subpara^aph (A), by striking "equal to" and 
inserting "not exceeding"; and 
(B) in subparagraph (B), in the matter preceding clause 
(i), by striking "equal to" and inserting "not exceeding"; 
and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking "equal to" and 
inserting "not exceeding"; and 
(B) in subparagraph (B), in the matter preceding clause 
(i), by striking "equal to" and inserting "not exceeding". 
SEC. 508. STATUTE OF LIMITATIONS ON PAYMENT OF DISTRIBUTIVE 
SHARES. 
(a) DISTRIBUTION OF SHARES.—Section 205(c) of the National 
Housing Act (12 U.S.C. 1711(c)) is amended by adding at the 
end the following two new sentences: "The Secretary shall not 
distribute any share to an eligible mortgagor imder this subsection 
beginning on the date which is 6 years after the date the Secretary 
first transmitted written notification of eligibility to the last known 
address of the mortgagor, unless the mortgagor has applied in 
accordance with procedures prescribed by the Secretary for payment 
of the share within the 6-year period. The Secretary shall transfer 
any amounts no longer eligible for distribution under the previous 
sentence from the Participating Reserve Accoimt to the (jreneral 
Surplus Account.". 
1
2 use 1711 
(b) EXCEPTION.—Notwithstanding the 6-year limitation on dis-
"°*®- 
tribution of shares of the Participating Reserve Accoimt under 
section 205(c) of the National Housing Act, the Secretary shall 
distribute a share to an otherwise eligible mortgagor in accordance 
with section 205(c), if the mortgagor applies for pa}anent of the 
share within 1 year after the date of enactment of this Act in 
accordance with procedures in effect on such date. 
SEC. 509. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS. 
(a) SECTION 207 LIMITS.—Section 207(cX3) of the National 
Housing Act (12 U.S.C. 1713(cX3)) is amended— 
(1) by striking "$25,350", "$28,080", "$33,540", "$41,340", 
and "$46,800" and inserting "$30,420", "$33,696", "$40,248", 
"$49,608", and "$59,160", respectively; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3783 
(2) by striking "$29,250", "$32,760", "$40,170", "$50,310", 
and "$56,885" and inserting "$35,100", "$39,312", "$48,204", 
"$60,372", and "$68,262", respectively. 
(b) SECTION 213 LIMITS.—Section 213(bX2) of the National 
Housing Act (12 U.S.C. 1715e(bX2)) is amended— 
(1) by striking "$25,350", "$28,080", "$33,540", "$41,340", 
and "$46,800" and inserting "$30,420", "$33,696", "$40,248", 
"$49,608", and "$59,160", respectively; and 
(2) by striking "$29,250*, "$32,760", "$40,170", "$50,310", 
and "$56,885" and inserting "$35,100", "$39,312", "$48,204", 
"$60,372", and "$68,262", respectively. 
(c) 
SECTION 220 
LIMITS.—Section 220(dX3XBXiii) of 
the 
National Housing Act (12 U.S.C. 1715k(dX3XBXiii)) is amended— 
(1) by striking "$25,350", "$28,080", "$33,540", "$41,340", 
and "$46,800" and inserting "$30,420", "$33,696", "$40,248", 
"$49,608", and "$59,160", respectively; and 
(2) by striking "$29,250*, "$32,760", "$40,170", "$50,310", 
and "$56,885" and inserting "$35,100", "$39,312", "$48,204", 
"$60,372", and "$68,262", respectively. 
(d) SECTION 221(dX3) LIMITS.—Section 221(dX3Xii) of the 
National Housing Act (12 U.S.C. 17151(dX3Xii)) is amended by 12USC1715/. 
striking "$28,032", "$32,321", "$38,979", "$49,893", "$55,583^ 
"$29,500", "$33,816", "$41,120", "$53,195", and "$58,392" and insert-
ing "$33,638", "$38,785", "$46,775", "$59,872", "$66,700", "$35,400", 
"$40,579", "$49,344", "$63,834", and "$70,070", respectively. 
(e) SECTION 221(dX4) LIMITS.—Section 221(dX4Xii) of the 
National Housing Act (12 U.S.C. 17151(dX4Xii)) is amended by 
striking "$25,228", "$28,636", "$34,613", "$43,446", "$49,231* 
"$27,251", "$31,239", "$37,986", "$49,140", and "$53,942" and insert-
ing "$30,274", "$34,363", "$41,536", "$52,135", "$59,077", "$32,701", 
"$37,487", "$45,583", "$58,968", and "$64,730", respectively. 
(f) SECTION 231 LIMITS.—Section 231(cX2) of the National Hous-
ing Act (12 U.S.C. 1715v(cX2)) is amended— 
(1) by striking "$23,985", "$26,813", "$32,019", "$38,532", 
and "$45,300" and inserting "$28,782", "$32,176", "$38,423", 
"$46,238", and "$54,360", respectively; and 
(2) by striking "$27,251*, "$31,239", "$37,986", "$49,140", 
and "$53,942" and inserting "$32,701", "$37,487", "$45,583", 
"$58,968", and "$64,730", respectively. 
(g) SECTION 234 LIMITS.—Section 234(eX3) of the National 
Housing Act (12 U.S.C. 1715y(eX3)) is amended— 
(1) by striking "$25,350", "$28,080", "$33,540", "$41,340", 
and "$46,800" and inserting "$30,420", "$33,696", "$40,248", 
"$49,608", and "$59,160", respectively; and 
(2) by striking "$29,250*, "$32,760", "$40,170", "$50,310", 
and "$56,885" and inserting "$35,100", "$39,312", "$48,204", 
"$60,372", and "$68,262", respectively. 
(h) REGULATIONS.—The Secretary of Housing and Urban Devel- 12 use 1713 
opment shall issue regulations necessary to carry out the amend- ^°^-
ments made by subsections (a) through (g), which shall take effect 
not later than the expiration of the 1-year period beginning on 
the date of the enactment of this Act. 
(i) CONFORMING AMENDMENTS.—Clauses (iXH) and (iiXH) of 
section 21A(cX9XE) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(cX9XE)) are each amended by striking "the applicable dollar 
amount" and all that follows through "areas)" and inserting the 
following: ", for such part of the property as may be attributable 
106 STAT. 3784 
PUBLIC LAW 102-550—OCT. 28, 1992 
to dwelling use (excluding exterior land improvements), $29,500 
per family unit without a bedroom, $33,816 per family unit with 
1 bedroom, $41,120 per family unit with 2 bedrooms, $53,195 per 
family unit with 3 bedrooms, and $58,392 per family vmit with 
4 or more bedrooms". 
SEC. 510. INSURANCE OF LOANS FOR OPERATING LOSSES OF MULTI-
FAMILY PROJECTS. 
Section 223(d) of the National Housing Act (12 U.S.C. 1715n(d)) 
is amended by adding at the end the following new paragraph: 
"(6) In determining the amount of an operating loss loan to 
be insured pursuant to this subsection, the Secretary shall not 
reduce such amount solely to reflect any amoimts placed in escrow 
(at the time the existing project mortgage was insured) for initial 
operating deficits. If an operating loss loan was insured by the 
Secretary pursuant to this subsection before the date of the enact-
ment of the Housing and Community Development Act of 1992 
and was reduced solely to reflect the amount placed in escrow 
for initial operating deficits, the Secretary shall insure, to the 
extent of the availability of insurance authority provided in appro-
priation Acts, an increase in the existing loan or a separate loan, 
in an amoimt equal to the lesser of (A) the maximum amount 
permitted imder this subsection and the applicable underwriting 
requirements esteblished by the Secretory and in effect at the 
time the loan is to be made, or (B) the amount of the escrow 
for initial operating deficits.". 
SEC. 611. EUCraiUTY OF ASSISTED LIVING FACIUTIES FOR MORT-
GAGE INSURANCE UNDER SECTION 232. 
(a) PURPOSE.—Section 232(a) of the National Housing Act (12 
U.S.C. 1715w(a)) is amended— 
(1) in the matter preceding paragraph (1), by striking 
"either" and inserting "anjr"; and 
(2) by adding at the end the following new paragraph: 
"(3) The development of assisted living facilities for the 
care of frail elderly persons.". 
(b) DEFINITIONS.—Section 232(b) of the National Housing Act 
(12 U.S.C. 1715w(b)) is amended— 
(1) in paragraph (4), by striking "and" at the end; 
(2) in paragraph (5), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
"(6) the term'assisted living facility means a public facility, 
proprietory facility, or facility of a private nonprofit corporation 
that^ 
"(A) is licensed and regulated by the Stote (or if there 
is no State law providing for such licensing and regulation 
by the Stote, by the municipality or other political subdivi-
sion in which the facility is located); 
"(B) makes available to residente supportive services 
to assist the residente in carrying out activities of daily 
living, such as bathing, dressing, eating, getting in and 
out of bed or chairs, walking, going outdoors, using the 
toilet, laimdry, home management, preparing meals, shop-
ping for personal items, obtoining and taking medication, 
managing money, using the telephone, or performing light 
or heavy housework, and which may make available to 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3785 
residents home health care services, such as nursing and 
therapy; and 
"(C) provides separate dwelling units for residents, 
each of which may contain a full kitchen and bathroom, 
and which includes common rooms and other facilities 
appropriate for the provision of supportive services to the 
residents of the facility; and 
"(7) the term 'frail elderly person' has the meaning given 
the term in section 802(k) of the Cranston-Gonzalez National 
Affordable Housing Act.". 
(c) MORTGAGE REQUIRISMENTS.—Section 232(d) of the National 
Housing Act (12 U.S.C. 1715w(d)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by inserting ", assisted living facility," before *
*
o
r 
intermediate care facility"; 
(B) by striking "combined niu>sing home and intermedi-
ate care facilitjr" and inserting "any combination of nursing 
home, assisted living facility, and intermediate care facil-
ity"; and 
(C) by inserting after "intermediate care facility^ the 
first place it appears the following: ", including a new 
addition to an existing nursing home, assisted living facil-
ity, or intermediate care facility and regardless of whether 
the existing home or facility is being rehabilitated,"; 
(2) in paragraph (2), in the matter preceding subparagraph 
(A), by inserting "or 95 percent of the estimated value of the 
property or project in the case of a mortgagor that is a private 
nonprofit corporation or association (imder the meaning given 
such term for purposes of section 221(dX3) of this Act)," before 
"including"; 
(3) in paragraph (3), by adding at the end the following: 
"The Secretary shall not promulgate regtdations or establish 
terms or conditions that interfere with the ability of the mortga-
gor and mortgagee to determine the interest rate; and 
(4) in paragraph (4), by adding at the end the following 
new subparagraph: 
"(C) With respect to assisted living facilities or any such 
facility combined with any other home or facility, the Secretary 
shall not insure any mortgage under this section unless— 
"(i) the Secretary determines that the level of financing 
acquired by the mortgagor and any other resources avail-
able for the facility will be sufficient to ensure that the 
facility contains dwelling units and facilities for the provi-
sion of supportive services in accordance with subsection 
(bX6); 
"(ii) the mortgagor provides assurances satisfactory to 
the Secretary that each dwelling unit in the facility will 
not be occupied by more than 1 person without the consent 
of all such occupante; and 
"(iii) the appropriate State licensing agency for the 
State, municipality, or other political subdivision in which 
the facility is or is to be located provides such assurances 
as the Secretary considers necessary that the faciUty will 
comply with any applicable stcmdards and requirements 
for such facilities.". 
106 STAT. 3786 
PUBLIC LAW 102-550—OCT. 28, 1992 
Reports. 
Regulations. 
12 use 
1735f-12. 
42 use 12712 
note. 
(d) FIRE SAFETY EQUIPMENT.—Section 232(iXl) of the National 
Housing Act (12 U.S.C. 1715w(iXl)) is amended by inserting 
", assisted living facilities," after "nursing homes". 
(e) ADMINISTRATION.—Section 232 of the National Housing Act 
(12 U.S.C. 1715w) is amended by adding at the end the following 
new subsection: 
"(j) The Secretary shall estabUsh schedules and deadlines for 
the processing and approval (or provision of notice of disapproval) 
of applications for mortgage insurance imder this section. The Sec-
retary shall submit a report to the Congress annually describing 
such schedules and deadlines and the extent of compliance by 
the Department with the schedules and deadlines during the year.". 
(f) AUTHORITY TO INSURE REFINANCING.—Section 223(f) of the 
National Housing Act (12 U.S.C. 1715n(f)) is amended by inserting 
"existing assisted Uving facility," after "existing nursing home," 
each place it appears. 
SEC. S12. EXPEDITING INSURANCE FOR ACQUISITION OF RESOLU-
TION TRUST CORPORATION PROPERTY. 
(a) IN GENERAL.—Section 534 of the National Housing Act 
(12 U.S.C. 1735f-12) is amended— 
(1) by inserting "(a) STATE OFFICES.—" after "534."; and 
(2) by adding at the end the following new subsection: 
"(b) EXPEDITED PROCEDURE FOR R T C PROPERTIES.—TO assist 
the Resolution Trust Corporation in disposing of the property to 
which it acquires title and to ensure the timely processing of 
applications for insurance of loans and mortgages under this Act 
that will be used to purchase multifamily residential property from 
the Resolution Trust Corporation, the Secretary shall establish 
an expedited procedure for considering such applications.". 
(b) IMPLEMENTATION.—^The procedure referred to in the amend-
ment made by subsection (a) shall be established through interim 
and final regulations issued by the Secretary. The Secretary shall 
issue interim regulations implementing the procedure not later 
than the expiration of the 90-day period beginning on the date 
of the enactment of this Act, which shall be effective upon issuance. 
The Secretary shall issue final regulations after notice and oppor-
tunity for public comment pursuant to the provisions of section 
553 of title 5, United States Code (notwithstanding subsections 
(aX2), (bXB), and (dX3) of such section). 
SEC. 513. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM. 
(a) ESTABUSHMENT OF PILOT PROGRAM.— 
(1) IN GENERAL.—Not later than 6 months after the date 
of enactment of this Act, the Secretary of Housing and Urban 
Development (hereeifter referred to as the "Secretary^) shall 
establish an energy efficient mortgage pilot program in 5 States, 
to promote the purchase of existing energy efficient residential 
buildings and the installation of cost-effective improvements 
in existing residential buildings. 
(2) PILOT PROGRAM.—^The pilot program established under 
this subsection shall include the following criteria, where 
' 
applicable: 
(A) ORIGINATION.—^The lender shall originate a housing 
loan that is insured under title II of the National Housing 
Act in accordance with the applicable requirements. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3787 
(B) APPROVAL.—^The mortgagor's base loan application 
shall be approved if the mortgagor's income and credit 
record is found to he satisfactory. 
(C) COST OF DVIPROVEMENTS.—The cost of cost-effective 
energy efficiency improvements shall not exceed the greater 
of— 
(i) 5 percent of the property value (not to exceed 
$8,000); or 
(ii) $4,000. 
(3) AUTHORITY FOR MORTGAGEES.—In granting mortgages 
under the pilot program established pursuant to this subsection, 
the Secretary shall grant mortgagees the authority— 
(A) to permit the final loan amount to exceed the 
loan limits established under title II of the National Hous-
ing Act by an amount not to exceed 100 percent of the 
cost of the cost-effective energy efficiency improvements, 
if the mortgagor's request to add the cost of such improve-
ments is received by the mortgagee prior to funding of 
the base loan; 
(B) to hold in escrow all funds provided to the mortga-
gor to undertake the energy efficiencv improvements until 
the efficiency improvements are actually installed; and 
(C) to transfer or sell the energy efficient mortgage 
to the appropriate secondary market agency, £iff;er the mort-
gage is issued, but before the energy efficiency improve-
ments are actually installed. 
(4) PROMOTION OF PILOT PROGRAM.—The Secretary shall 
encourage participation in the energy efficient mortgage pilot 
program by— 
(A) making available information to lending agencies 
and other appropriate authorities regarding the availability 
and benefits of energy efficient mortgages; 
(B) requiring mortgagees and designated lending 
authorities to provide written notice of the availability 
and benefits of the pilot program to mortgagors appljdng 
for financing in those States designated by the Secretary 
as participating under the pilot program; and 
(C) requiring each applicant for a mortgage insured 
under title II of the National Housing Act in those States 
participating under the pilot program to sign a statement 
that such applicant has been informed of the program 
requirements and understands the benefits of energy effi-
cient mortgages. 
(5) TRAINING PROGRAM.—Not later than 9 months after Establishment. 
the date of enactment of this Act, the Secretary, in consultation 
with the Secretary of Energy, shall establish and implement 
a program for training personnel at relevant lending agencies, 
real estate companies, and other appropriate organizations 
regarding the benefits of energy efficient mortgages and the 
operation of the pilot program under this subsection. 
(6) REPORT.—^Not later than 18 months £ift«r the date of 
enactment of this Act, the Secretary shall prepare and submit 
a report to the Congress describing the effectiveness and 
implementation of the energy efficient mortgage pilot program 
as described under this subsection, and assessing the potential 
for expanding the pilot program nationwide. 
106 STAT. 3788 
PUBLIC LAW 102-550—OCT. 28, 1992 
Reports. 
(b) EXPANSION OF PROGRAM.—Not later than the expiration 
of the 2-year period beginning on the date of the implementation 
of the energy efficient mortgage pilot program under this section, 
the Secretary of Housing and Urban Development shall expand 
the pilot program on a nationwide basis and shall expand the 
program to include new residential housing, unless the Secretary 
determines that either such expansion would not be practicable 
in which case the Secretary shaU submit to the Congress, before 
the expiration of such period, a report explaining why either expan-
sion would not be practicable. 
(c) DEFINITIONS.—^For purposes of this section: 
(1) The term 'Ibase loan" means any mortgage loan for 
a residential building eligible for insurance under title II of 
the National Housing Act or title 38, United States Code, 
that does not include the cost of cost-effective energy 
improvements. 
(2) The term "cost-effective" means, with respect to energy 
efSicienQT improvements to a residential building, improvements 
that result in the total present value cost of the improvements 
(including any maintenance and repair expenses) being less 
than the total present value of the energy saved over the 
useful life of the improvement, when 100 percent of the cost 
of improvements is added to the base loan. For purposes of 
this paragraph, savings and cost-effectiveness shall be deter-
mined pursuant to a home energy rating report sufficient for 
purposes of the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation, or by other 
technically accurate methods. 
(3) The term "energy efficient mortgage" means a mortgage 
on a residential building that recognizes the energy savings 
of a home that has cost-effective energy saving construction 
or improvements (including solar water heaters, solar-assisted 
air conditioners and ventilators, super-insulation, and insulat-
ing glass and film) and that has the effect of not disqualifying 
a borrower who, but for the expenditures on energy saving 
construction or improvements, would otherwise have qualified 
for a base loan. 
(4) The term "residential building" means any attached 
or unattached single family residence. 
(d) RULE OF CONSTRUCTION.—^This section may not be construed 
to affect any other programs of the Secretary of Housing and 
Urban Development for energy-efficient mortgages. The pilot pro-
gram carried out imder this section shall not replace or result 
in the termination of such other programs. 
(e) REGULATIONS.—^The Secretary shall issue any regulations 
necessary to carry out this section not later than the expiration 
of the 180-day period beginning on the date of the enactment 
of this Act. The regulations shall be issued after notice and oppor-
tunity for public comment pursuant to the provisions of section 
553 of title 5, United States Code (notwithstanding subsections 
(aX2), (bXB), and (dX3) of such section). 
(f) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3789 
SEC. 514. STUDY REGARDING HOME WARRANTY PLANS. 
12 USC 1701J-1 
(a) IN GENERAL.—^The Secretary of Housing and Urban Develop-
ment (hereafter in this section referred to as the "Secretary") shall 
conduct a study of home and builder's warranties and protection 
plans regarding the construction of, and materials used in, 1- to 
4-family dwellings subject to mortgages insured under title II of 
the National Housing Act. 
(b) SCOPE OF STUDY.—The study shall analyze— 
(1) the extent to which home sellers and builders use 
such warranties and plans, 
(2) how such warranties and plans aftect the single family 
mortgage insurance program imder the National Housing Act 
and the solvency of the Mutual Mortgage Insurance Fund, 
(3) any effects on homeowners of reliance upon such 
warranties and plans, 
(4) the cost of inspections of mortgaged homes not covered 
by such warranties or plans, 
(5) how quickly the issuers of such warranties and plans 
pay claims to homeowners under the warranties and plans, 
(6) how well such warranties and plans provide for the 
prevention of structural damage before damage occurs, 
(7) how responsive the issuers are to homeowner 
complaints, 
(8) the extent to which homeowners are adequately 
informed of the extent of insurance coverage, the complaint 
procedures, and the arbitration procedures available to them 
under such warranties and plans, 
(9) the extent to which the arbitration process used to 
settle claims under such warranties and plans provides fair 
and reasonable relief for homeowners, 
(10) how well homeowners are informed of their right to 
appeal the decision of such arbitrators to the Secretary, 
(11) whether the reporting and inspection requirements 
to which such warranties and plans are subject provide the 
Secretary with sufficient information to verify that such 
warranties and plans are acceptable, 
(12) whether dwellings covered by such warranties and 
plans satisfy all requirements which would have been applicable 
if such dwellings had been approved for mortgage insurance 
by the Secretary before the beginning of construction, and 
(13) any other issues relating to such warranties and plans 
that the Secretary considers appropriate. 
(c) REPORT.—^The Secretary shall submit a report to the Con-
gress regarding the findings of the study and any recommendations 
of the Secretary resulting from the study, not later than the expira-
tion of the 12-month period beginning on the date of the enactment 
of this Act. 
SEC. 515. EXPENDITURES TO CORRECT DEFECTS. 
Section 518(a) of the National Housing Act (12 U.S.C. 1735b(a)) 
is amended— 
(1) by redesignating paragraphs (1) through (3) as subpara-
graphs (A) through (C), respectively; and 
(2) by striking out 'The Secretary" and all that follows 
through "make expenditures for" and inserting in lieu thereof 
the following: 
106 STAT. 3790 
PUBLIC LAW 102-550—OCT. 28, 1992 
''(1) The Secretary is authorized to make expenditures 
imder this subsection with respect to any property that— 
"(A) is a condominium imit (including common areas) 
or is improved by a one-to-four family dwelling; 
"(B) was approved, before the beginning of construction, 
for mortgage insurance imder this Act or for guaranty, 
insurance, or direct loan under chapter 37 of title 38, 
United States Code, or was less than a year old at the 
time of insurance of the mortgage and was covered by 
a consumer protection or warranty plan acceptable to the 
Secretary; and 
"(C) the Secretary finds to have structural defects. 
"(2) Expenditures under this subsection may be made for^. 
SEC. 516. PAYMENT OF MORTGAGE INSURANCE CLAIMS. 
(a) PAYMENT OP INSURANCE.—Section 204 of the National Hous-
ing Act (12 U.S.C. 1710) is amended— 
(1) in the fifth sentence of subsection (a), by striking 
", subject to the cash adjustment hereinafi^r provided, issue 
to the mortgagee debentures having a total face value" and 
insert in lieu thereof the following: "issue to the mortgagee 
debentures having a par value"; 
(2) by striking subsection (c) and inserting the following: 
"(c) Debentures issued under this section— 
"(1) shall be in such form and amoimts; 
"(2) shall be subject to such terms and conditions; 
"(3) shall include such provisions for redemption, if any, 
as may be prescribed by the Secretary of Housing and Urban 
Development, with the approval of the Secretary of the Treas-
ury; and 
"(4) may be in book entrv or certificated registered form, 
or such other form as the ^cretary of Housing and Urban 
Development may prescribe in regulations."; 
(3) in the first sentence of subsection (d)— 
(A) by striking "executed" and inserting "issued"; and 
(B) by striking ", shall be simed by the Secretary 
by either his written or engraved signature, and shall 
be negotiable" and inserting the following: "and shall be 
negotiable, and, if in book entry form, transferable, in 
the manner described by the Secretary in regulations"; 
and 
(4) by striking in the fifth sentence of subsection (d) "and 
such guarantjr" and inserting the following: "and, in the case 
of debentures issued in certificated registered form, such 
guaranty". 
(b) RENTAL HOUSING INSURANCE.—Section 207 of the National 
Housing Act (12 U.S.C. 1713) is amended— 
(1) by striking in the second sentence of subsection (g) 
", subject to the cash adjustment provided for in subsection 
(j)> issue to the mortgagee a certificate of claim as provided 
in subsection (h), and debentures having a total face value" 
and inserting the following: "issue to the mortgagee a certificate 
of claim as provided in subsection (h), and debentures having 
a par value"; 
(2) by striking in the first sentence of subsection (i) "shall 
be signed by the Secretary, by either his written or engraved 
signature, shall be negotiable" and inserting the following: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3791 
''shall be negotiable, and, if in book entry form, transferable, 
in the manner described by the Secretary in regulations"; 
(3) by striking in the fourth sentence of subsection (i) 
"and such guaranty^ £Uid inserting the following: "and, in the 
case of debentures issued in certificated registered form, such 
guaranty"; and 
(4) by striking subsection (j) and inserting the following: 
"(j) Debentures issued under this section— 
"(1) shall be in such form and amounts; 
"(2) shall be subject to such terms and conditions; 
"(3) shall include such provisions for redemption, if any, 
as may be prescribed by the Secretary of Housing and Urban 
Development, with the approval oi the Secretary of the 
Treasury; and 
"(4) may be in book entry or certificated registered form, 
or such other form as the Secretary of Housing and Urban 
Development may prescribe in regulations.". 
(c) REHABILITATION AND NEIGHBORHOOD CONSERVATION HOUS-
ING INSURANCE.—Section 220(h) of the National Housing Act (12 
U.S.C. 1715k) is amended— 
(1) by striking in the first sentence of paragraph (7), "shall 
be signed by the Secretary, by either his written or engraved 
signature, shall be negotiable" and inserting the following: 
"shall be negotiable, and, if in book entry form, transferable, 
in the manner described by the Secretary in regulations"; 
(2) by striking in the fourth sentence of paragraph (hX7) 
"and the guaranty" and inserting the following: "and, in the 
case of debentures issued in certificated registered form, the 
guaranty'; 
(3) by striking the sixth sentence of paragraph (7), and 
inserting the following: "Debentures issued imder this sub-
section shall be in such form and amounts; shall be subject 
to such terms and conditions; and shall include such provisions 
for redemption, if any, as may be prescribed by the Secretary 
of Housing and Urban Development, with the approval of the 
Secretary of the Treasury; and may be in book entry or certifi-
cated registered form, or such other form as the Secretary 
of Housing and Urban Development may prescribe in regula-
tions."; and 
(4) by striking the last sentence of paragraph (7). 
(d) HOUSING FOR MODERATE INCOME AND DISPLACED FAMI-
LIES.—^The second sentence of section 221(gX4XA) of the National 
Housing Act (12 U.S.C. 17151(gX4XA)) is amended by striking 12USC1715/. 
", subject to the cash a4justment provided herein, issue to the 
mortgagee debentures having total face value" and inserting the 
following: "issue to the mortgagee debentures having a par value". 
SEC. 517. COVERAGE OF 
THE 
MULTIFAMILY MORTGAGE FORE-
CLOSUREACT. 
(a) PURPOSES.—Section 362 of the Multifamily Mortgage Fore-
closure Act of 1981 (12 U.S.C. 3701) is amended— 
(1) in subsection (aXD, by striking "real estate" and all 
that follows through "properties" and inserting: "multifamily 
mortgages"; and 
(2) in subsection (b), by striking "multiimit" and all that 
follows through "1964" and inserting "miiltifamily mortgages". 
106 STAT. 3792 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) DEFINITION.—Section 363(2) of the Multifamily Mortgage 
Foreclosure Act of 1981 (12 U.S.C. 3702(2)) is amended to read 
as follows: 
"(2) 'multifamily mortgage' means a mortgage held by the 
Secretary pursuant to— 
"(A) section 608 or 801, or title II or X, of the National 
Housing Act; 
"(B) section 312 of the Housing Act of 1964, as it 
existed immediately before its repeal bv section 289 of 
the Cranston-Cjronzalez National Affordable Housing Act; 
"(C) section 202 of the Housing Act of 1959, as it 
existed immediately before its amendment by section 801 
of the Cranston-Gonzalez National Affordable Housing Act; 
V 
"(D) section 202 of the Housing Act of 1959, as amended 
by section 801 of the Cranston-Cxonzalez National Afford-
able Housing Act; and 
"(E) section 811 of the Cranston-Cronzalez National 
Affordable Housing Act.". 
(c) PREREQUISITES TO FORECLOSURE.—-The last sentence of sec-
tion 366 of the Multifamily Mortgage Foreclosure Act of 1981 (12 
U.S.C. 3705) is amended by striking "status" and all that follows 
through "rents" and inserting the following: "status, relief under 
an assignment of rents, or transfer to a nonprofit entity pursuant 
to section 202 of the Housing Act of 1959 (as amended by section 
801 of the Cranston-Gonzalez National Affordable Housing Act) 
or section 811 of the Cranston-Gronzalez National Affordable Hous-
ing Act". 
(d) NOTICE.—Section 367(b)(1) of the Multifamily Mortgage 
Foreclosure Act of 1981 (12 U.S.C. 3706(b)(1)) is amended to read 
as follows: 
"(b)(1) Except as provided in paragraph (2XA), the Secretary 
may require, as a condition and term of sale, that the purchaser 
at a foreclosure sale under this part agree to continue to operate 
the security property in accordance with the terms of the program 
under which the mortgage insurance or assistance was provided, 
or any applicable regulatory or other agreement in effect with 
respect to such property immediately prior to the time of foreclosure 
sale.". 
SEC. 518. MORTGAGEE REVIEW BOARD. 
Section 202(c)(3XC) of the National Housing Act (12 U.S.C. 
1708(c)(3)(C)) is amended— 
(1) by inserting "temporariljr" £ifter "order"; 
(2) by inserting "(i)" after "Administration if"; 
(3) by inserting "(ii)" after "violations and"; and 
(4) by striking the period after "6 months" and inserting 
the following: ", and for not longer than 1 year. The Board 
may extend the suspension for an additional 6 months if it 
determines the extension is in the public interest. If the Board 
and the mortgagee agree, these time limits may be extended.". 
SEC. 519. DEFINITION OF MORTGAGEE. 
Section 202(c) of the National Housing Act (12 U.S.C. 1708(c)) 
is amended— 
(1) by striking paragraph (6)(D); and 
(2) by redesignating paragraph (7) as paragraph (8), and 
inserting the following after paragraph (6): 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3793 
"(7) DEFINITION OF'MORTGAGEE'.—For purposes of this sub-
section, the term 'mortgagee' means— 
"(A) a mortgag(}e approved under this Act; 
"(B) a lender or a loan correspondent approved under 
title I of this Act; 
"(C) a branch office or subsidiary of the mortgagee, 
lender, or loan correspondent; or 
"(D) a director, officer, employee, agent, or other person 
participating in the conduct of the affairs of the mortgagee, 
lender, or loan correspondent.". 
SEC. 520. EXEMPTION FROM SECTION 137(b) OF THE TRUTH IN LEND-
INGACT. 
Section 255(j) of the National Housing Act (12 U.S.C. 1715z-
20(j)) is amended by adding at the end the following: "Section 
137(b) of the Truth in Lending Act (15 U.S.C. 1647(b)) and any 
implementing regulations issued by the Board of Governors of the 
Federal Reserve System shall not apply to a mortgage insured 
under this section.". 
Subtitle B—Secondary Mortgage Market 
Programs 
SEC. 531. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-
BACKED SECURITIES. 
Section 306(gX2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(gX2)) is amended to read as follows: 
"(2) Notwithstanding any other provision of law and subject 
only to the absence of qualified requests for guarantees, to the 
authority provided in this subsection, and to the extent of or in 
such amounts as any funding limitation approved in appropriation 
Acts, the Association shall enter into commitments to issue guaran-
tees 
under 
this 
subsection 
in 
an 
aggregate 
amount 
of 
$88,000,000,000 during fiscal year 1993 and $91,696,000,000 during 
fiscal year 1994. There is authorized to be appropriated such sums Appropriation 
as may be necessary to cover the costs (as such term is defined authorization. 
in section 502 of the Congressional Budget Act of 1974) of guaran-
tees issued under this Act by the Association.". 
SEC. 532. AUTHORITY FOR GNMA TO MAKE HARDSHIP INTEREST PAY-
MENTS. 
Section 306(gXl) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(gXl)) is amended by inserting after 
the period at the end of the third sentence the following new 
sentence: "In any case in which (I) Federal law requires the reduc-
tion of the interest rate on any mortgage backing a security guaran-
teed under this subsection, (II) the mortgagor under the mortgage 
is a person in the military service, and (III) the issuer of such 
security fails to receive from the mortgagor the full amount of 
interest pajnnent due, the Association may make pa3rments of 
interest on the security in amounts not exceeding the difference 
between the amount payable under the interest rate on the mort-
gage and the amount of interest actually paid by the mortgagor.". 
106 STAT. 3794 
PUBLIC LAW 102-550—OCT. 28, 1992 
Multifamily 
Housing Finance 
Improvement 
Act 
12 use 1707. 
Subtitle C—^Improvement of Financing for 
Multifamily Housing 
SEC. 541. SHORT TITLE. 
This subtitle may be cited as the 'Multifamily Housing Finance 
Improvement Act". 
SEC. 542. MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS. 
(a) IN GENERAL.—^The Secretary of Housing and Urban Develop-
ment (hereinafter referred to as the "Secretaiy) shall carry out 
programs through the Federal Housing Administration to dem-
onstrate the efTectiveness of providing new forms of Federal credit 
enhctncement for multifamilv loans, m carrying out demonstration 
programs, the Secretary shall include an evaluation of the effective-
ness of entering into partnerships or other contractual arrange-
ments including reinsurance and risk-sharing agreements with 
State or local housing finance agencies, the Federal Housing 
Finance Board, the Federal National Mortgage Association, the 
Federal Home Loan Mortgage Corporation, qualified financial 
institutions, and other State or local mortgage insurance companies 
or bank lending consortia. 
(b) RISK-SHARING PILOT PROGRAM.— 
(1) IN GENERAL.—^The Secretaiy shall carry out a pilot 
program through the Federal Housing Administration to pro-
vide for risk sharing related to mortgages on multifamily 
housing. 
(2) AUTHORITY FOR REINSURANCE AGREEMENTS.—The Sec-
retary may enter into reinsurance agreements (as such term 
is defined in section 544) with the Federal National Mortgage 
Association, the Federal Home Loan Mortgage Corporation, 
qualified financial institutions, qualified housing finance agen-
cies, and the Federal Housing Finance Board. The agreements 
may provide for risk-sharing and other forms of credit enhance-
ment with respect to mortgage lending on multifamily housing, 
i 
including reinsurance with respect to pools of loans on multi-
family housing properties, that the Secretary determines to 
be appropriate to carry out the purposes of this subsection. 
The agreements shall be in a form and have such terms and 
conditions as the Secretary determines to be appropriate to 
carry out the piuposes of this subsection. 
(3) DEVELOPMENT OF ALTERNATIVES.—The Secretary shall 
develop and assess a variety of risk-sharing alternatives, includ-
ing arrangements under which the Secretary assumes an appro-
priate share of the risk related to long-term mortgage loans 
on newly constructed or acquired multifamily rent^ housing, 
mortgage refinancings, bridge financing for construction, and 
other forms of multifamily housing mortgage lending that the 
Secretary deems appropriate to carry out the purposes of this 
subsection. Such alternatives shall be designed— 
(A) to ensure that other parties bear a share of the 
risk, in percentage amoimt and in position of exposure, 
that is sufficient to create strong, market-oriented incen-
tives for other participating parties to maintain sound 
underwriting and loan management practices; 
(B) to develop credit mechanisms, including sound 
underwriting criteria, processing methods, and credit 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3795 
enhancements, through which resources of the Federal 
Housing Administration can assist in increasing multifam-
ily housing lending as needed to meet the expected need 
in the United States; 
(C) to provide a more adequate supply of mortgage 
credit for sound multifamily rental housing projects m 
underserved urban and rural markets; 
(D) to encourage m£gor financial institutions to expand 
their participation in mortgage lending for sound multifam-
ily housing, through means such as mitigating uncertain-
ties regarding actions of the Federal Government (including 
the possible failure to renew short-term subsidy contracts); 
(E) to increase the efficiency, and lower the costs to 
the Federal Government, of processing and servicing multi-
family housing mortgage loans insured by the Federal 
Housing Administration; and 
(F) to improve the qualify and expertise of Federal 
Housing Administration staff and other resources, as 
required for sound management of reinsureuice and other 
market-oriented forms of credit enhancement. 
(4) ELIGIBILITY STANDARDS.—The Secretary shall establish 
and enforce st€indards for financial institutions and entities 
to be eligible to enter into reinsurance agreements under this 
subsection, as the Secretary determines to he appropriate. 
(5) FUNDING.—^Using any authority provided in appropria-
tion Acts to insure loans imder the National Housing Act, 
the Secretary may enter into commitments under this sub-
section for risk sharing with respect to mortgages on not more 
than 15,000 units over fiscal years 1993 and 1994. The dem-
onstration authorized under this subsection shall not be 
expanded until the reports required under subsection (d) are 
submitted to Congress. 
(6) FEES.—^The Secretary shall establish and collect pre-
mimns and fees under this subsection as the Secretary deter-
mines appropriate to (A) achieve the purpose of this subsection, 
and (B) compensate the Federal Housing Administration for 
the risks assumed and related administrative costs. 
(7) 
NON-FEDERAL PARTICIPATION.—The Secretary shall 
carry out this subsection, to the maximum extent practicable, 
with the participation of well-established residential mortgage 
originators, financial institutions that invest in multifamily 
housing mortgages, multifamily housing sponsors, and such 
other private sector experts in multifamily housing finance 
as the Secretary determines to be appropriate. 
(8) TIMING.—^The Slecretary shall take any administrative 
actions necessary to initiate the pilot program under this sub-
section not later than the expiration of the 8-month period 
beginning on the date of the enactment of this Act. 
(c) HOUSING FINANCE AGENCY PILOT PROGRAM.— 
(1) IN GENERAL.—^l^'he Secretary shall carry out a specific 
pilot program in conjimction with qualified housing finance 
agencies to test the effectiveness of Federcd credit enhancement 
for loans for affordable multifamily housing through a system 
of risk-sharing agreements with such agencies. 
(2) PILOT P
R
O
G
R
A
M REQUIREMENTS.— 
(A) IN GENERAL.—In carrying out the pilot program 
authorized under this subsection, the Secretary shall enter 
106 STAT. 3796 
PUBLIC LAW 102-550—OCT. 28, 1992 
into risk-sharing agreements with qualified housing finance 
agencies. 
(B) 
MORTGAGE 
INSURANCE.—^Agreements 
under 
subparagraph (A) shall provide for full mortgage insurance 
through the Federal Housing Administration of the loans 
for affordable multifamily housing originated by or through 
qualified housing finance agencies and for reimbursement 
to the Secretary oy such agencies for either all or a portion 
of the losses incurred on the loans insured. 
(C) RISK APPORTIONMENT.—Agreements entered into 
under this subsection between the Secretary and a qualified 
housing finance agency shall specify the percentage of loss 
that each of the parties to the agreement will assume 
in the event of default of the insured multifamily mortgage. 
Such agreements shall specify that the qualified housing 
finance agenqr and the Secretary shall share equally the 
full amount of any loss on the insured mortgage. 
(D) REIMBURSEMENT CAPACITY.—Agreements entered 
into under this subsection between the Secretly and a 
qualified housing finance agency shall provide evidence 
of the capacity of such agency to fulfill any reimbursement 
obligations made pursuant to this subsection. Evidence of 
such capacity may include— 
(i) a pledge of the full faith and credit of a qualified 
State or local agency to fulfill any obligations entered 
into by the qualified housing finance agency; 
(ii) reserves pledged or otherwise restricted by the 
qualified housing finance agency in an amoimt equal 
to an agreed upon percentage of the loss assumed 
by the housing finance agency under subparagraph 
(C); 
(iii) fimds pledged through a Stete or local guaran-
tee fond; or 
(iv) any other form of evidence mutually agreed 
upon by the Secretory and the quaUfied housing 
finance agency. 
(E) UNDERWRITING STANDARDS.—The Secretai^r shall 
allow any qualified housing finance agency to use ite own 
imderwnting stondards and loan terms and conditions for 
purposes of underwriting loans to be insiu'ed imder this 
subsection without further review by the Secretory, except 
that the Secretory may impose additional underwriting 
critoria and loan torms and conditions for contractu£U 
agreemento where the Secretory retoins more than 50 per-
cent of the risk of loss. 
(3) MORTGAGE INSURANCE PREMIUMS.—The Secretory shall 
estoblish a schedule of insurance premium paymento for mort-
gages insured under this subsection based on the percentoge 
of loss the Secretary may assume. Such schedule shall reflect 
lower or nominal premiums for qualified housing finance agen-
cies that assimie a greater share of the risk apportioned accord-
ing to paragraph (2XC). 
(4) LIMITATION ON INSURANCE AUTHORITY.—Using any 
authority provided Inr appropriations Acto to insure mortgages 
under the National Housing Act, the Secretory may enter into 
commitmente under this subsection with respect to mortgages 
on not to exceed 30,000 units over fiscal years 1993, 1994, 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3797 
and 1995. The demonstration authorized under this subsection 
shall not be expanded until the reports required under sub-
section (d) are submitted to the Congress. 
(5) IDENTITY OF INTEREST.—Notwithstanding any other 
provision of law, the Secretary shall not apply identity of. 
interest provisions to agreements entered into with qualified 
State housing finance agencies under this subsection. 
(6) PROHIBITION ON GINNIE MAE SECURITIZATION.—^The 
Government National Mortgage Association shall not securitize 
any multifamily loans insured under this subsection. 
(7) QUALIFICATION AS AFFORDABLE HOUSING.—Multifamily 
housing securing loans insured under this subsection shall qual-
ify as affordable only if the housing is occupied by very low-
income families and bears rents not greater than the gross 
rent for rent-restricted residential units as determined under 
section 42(g)(2) of the Internal Revenue Code of 1986. 
(8) REGULATIONS.—Not later than 90 days afler the date 
of enactment of this Act, the Secretary shall issue such regula-
tions as may be necessary to carry out this subsection. 
(d) INDEPENDENT STUDIES AND REPORTS.— 
(1) FEDERAL NATIONAL MORTGAGE ASSOCL^TION.—The Fed-
eral National Mortgage Association, in consultation with rep-
resentatives of its seller-servicers and State housing finance 
agencies, shall carry out an independent assessment of alter-
native methods for achieving the purposes of this section and 
shall submit a report containing any findings and recommenda-
tions, including any recommendations for legislative or adminis-
trative action, simultaneously to the Secretary and the Congress 
not later than 12 months after the date of the enactment 
of this Act. 
(2) FEDERAL HOME LOAN MORTGAGE CORPORATION.—The 
Federal Home Loan Mortgage Corporation, in consultation with 
representatives of its seller-servicers and State housing finance 
agencies, shall carry out an independent assessment of alter-
native methods for achieving the purposes of this section and 
shall submit a report containing any findings and recommenda-
tions, including any recommendations for legislative or adminis-
trative action, simultaneously to the Secretary and the Congress 
not later than 12 months after the date of the enactment 
of this Act. 
(3) SECRETARY.—The Secretary shall submit to the Con-
gress, and publish, reports under this paragraph assessing 
the activities carried out under each of the pilot programs. 
The Secretary shall submit and publish a preliminary report 
under this paragraph not later than 9 months after the date 
of the implementation of each of the pilot programs, and a 
final report not later than 24 months after the date of 
implementation on which the pilot program is initiated, which 
shall include any recommendations by the Secretary for legisla-
tive changes to achieve the purposes of this section. 
(4) COMPTROLLER GENERAL.—The Comptroller General of 
the United States shall carry out an evaluation of each of 
the pilot programs under this section and shall submit to the 
Congress, not later 
than 30 months afler the date of 
implementation for each of the pilot programs, a report regard-
ing the evaluation, together with any recommendations for 
legislative changes to achieve the purposes of this section. 
106 STAT. 3798 
PUBLIC LAW 102-550—OCT. 28, 1992 
The Comptroller Greneral shall also submit to the Congress 
a report containing a preliminary assessment of the pilot pro-
gram not later than 18 months after the date of enactment 
of this Act. 
(5) FEDERAL HOUSING FINANCE BOARD.—The Federal Hous-
ing Finance Board shall monitor and assess the activities car-
ried out under the pilot programs under this section. The 
Federal Housing Finance Board shall submit a preliminary 
report containing any findings regarding such activities not 
later than 9 months after the date of the enactment of this 
Act, and a final report containing such findings not later than 
24 months after the date on which the pilot program is initiated, 
which shall include any recommendations by the Board for 
legislative changes to achieve the purposes of this section. 
SEC. 543. NATIONAL INTERAGENCY TASK FORCE ON MULTIFAMILY 
HOUSING. 
(a) PURPOSE.—^The purpose of this section is to establish a 
National Interagency Task Force on Multifamily Housing to develop 
recommendations for establishing a national database on multifam-
ily housing loans. 
(b) ESTABLISHMENT OF TASK FORCE.—There is established a 
Task Force known as the National Interagency Task Force on 
Multifamily Housing (hereafter in this section referred to as the 
"Task Force"). 
(c) MEMBERSHIP OF TASK FORCE.— 
(1) FEDERAL OFFICLVLS.—The Task Force shall be composed 
o
f
— 
(A) the Secretary of Housing and Urban Development; 
(B) the Chairperson of the Federal Housing Finance 
Board; 
(C) the Comptroller of the Currency; 
(D) the Chairman of the Board of Governors of the 
Federal Reserve System; 
(E) the Director of the Office of Thrift Supervision; 
(F) the Chairperson of the Federal Deposit Insurance 
Corporation; 
(G) the Chairperson of the Federal National Mortgage 
Association; and 
(H) the Chairperson of the Federal Home Loan Mort-
gage Corporation, 
or their designees, and the persons appointed under paragraphs 
(2) and (3). 
(2) APPOINTMENTS BY THE SECRETARY.—The Secretary shall 
appoint as members of the Task Force— 
(A) 1 individual who is a representative of a State 
housing finance agency; 
(B) 1 individual who is a representative of a local 
housing finance agency; 
(C) 1 individual who is a representative of the building 
industry with experience in multifamily housing; and 
(D) 1 individual who is a representative of the life 
insurance industry with experience in multifamily loan 
performance data. 
(3) APPOINTMENTS BY THE CHAIRPERSON OF THE FHFB.— 
The Chairman of the Federal Housing Finance Board shall 
appoint as members of the Task Force— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3799 
(A) 1 individual who is a representative from the finan-
cial services industry with experience in miiltifamily hous-
ing underwriting; 
(B) 1 individual who is a representative from the non-
profit housing development sector with experience in sub-
sidized multifamily housing development; and 
(C) 1 individual who is a representative from a nation-
ally recognized rating agency. 
(d) ADMINISTRATION.— 
(1) CHAIRPERSONS.—The Task Force shall be chaired jointly 
by the Secretary and the Chairman of the Federal Housing 
Finance Board. 
(2) MEETINGS.—^The Task Force shall meet no less than 
4 times, at the call of the Chairpersons of the Task Force. 
(3) QUORUM.—^A majority of the members of the Task Force 
shall constitute a quorum for the transaction of business. 
(4) VOTING.—Each member of the Task Force shall be 
entitled to 1 vote, which shall be equal to the vote of every 
other member of the Task Force. 
(5) VACANCIES.—^Anv vacancy on the Task Force shall not 
affect its powers, but shall be nlled in the manner in which 
the original appointment was made. 
(6) PROHIBITION ON ADDITIONAL PAY.—Members of the Task 
Force 
shall 
serve without 
compensation, 
but 
shall 
be 
reimbursed 
for travel, subsistence, and other 
necessary 
expenses incurred in the performance of their duties as mem-
bers of the Task Force. 
(e) FUNCTIONS OF THE TASK FORCE.— 
(1) IN GENERAL.—The Task Force shall conduct a multifam-
ily housing financial data project in order to improve the avail-
ability and efficiency of financing for multifamily 
rental 
housing. The project shall— 
(A) analyze available data regarding the performance 
of multifamily housing mortgage loans in all regions of 
the coimtry; 
(B) prepare a comprehensive national database on the 
operation and financing of multifamily housing that will 
provide reliable information appropriate to meet the pro-
jected needs of lenders, investors, sponsors, property man-
agers, and public officials; 
(C) identify important factors that affect the long-term 
financial and operational soundness of multifamily housing 
properties, including factors relating to project credit risk, 
project underwriting, interest rate risk, real estate market 
conditions, 
public 
subsidies, 
tax 
policies, 
borrower 
characteristics, 
program 
management 
standards, 
and 
government policies; 
(D) develop common definitions, standards, and proce-
dures that will improve multifamilv housing underwriting 
and accelerate the development of a strong, competitive, 
and efficient secondary market for multifamily housing 
loans; and 
(E) make available appropriate information to various 
organizations in forms that will assist in improving multi-
family housing loan underwriting and servicing. 
(2) FINAL REPORT.—Not later than 1 year following the 
enactment of this Act, the Task Force shall submit to the 
59-194 O—93 
6 : QL 3 (Pt. 5) 
106 STAT. 3800 
PUBLIC LAW 102-550—OCT. 28, 1992 
Congress a final report which shall contain the information, 
evaluations, and recommendations specified in paragraph (1). 
(f) AUTHORITY OF TASK FORCE.— 
(1) RULES AND REGULATIONS.—The Task Force may adopt 
such rules and regulations as may be necessary to establish 
its procedures and to govern the manner of its operations, 
organization and personnel. 
(2) ACCESS TO DATA.—The members of the Task Force 
representing the Comptroller of the Currency, the Office of 
Thrift Supervision, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corporation, 
the Secretary of Housing and Urban Development, the Federal 
Housing Finance Board, the Federal National 
Mortgage 
Association, and the Federal Home Loan Mortgage Corporation 
shall make available to the Task Force a representative sample 
of multifamily housing mortgage loans in order for the Task 
Force to make its findings and recommendations, except that— 
(A) all information obtained shall be used only for 
the purposes authorized in this section; 
(B) the Task Force shall maintain the confidentiality 
of all such information obtained in the manner established 
for the material by the submitting entity, and such data 
shall not be subject to release under section 552 of title 
5, United States Code; 
(C) only aggregate data shall be publicly released by 
the Task Force imless it receives the explicit permission 
of the mortgage originator or government-sponsored enter-
prise from which the information is obtained; and 
(D) any officer or employee of the Secretary, the Office 
of Thrift Supervision, the Board of Grovemors of the Federal 
Reserve, the Office of the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, or the Federal 
Housing Finance Board shall be subject to the penalties 
imder section 1906 of title 18, United States Code, if— 
(i) by virtue of employment or official position, 
the officer or employee has possession of or access 
to any book, record, or information made available 
under this subsection and established as confidential 
under subparagraph (C); and 
(ii) the officer or employee discloses the material 
in any manner other than to an officer or employee 
of the same Federal agency emplo3dng the officer or 
employee, or other than pursuant to the exemptions 
under section 1906. 
(3) SAMPLE DATA.—In order to ensure a representative 
sample of multifamily housing data, the Department of Housing 
and Urban Development, the Office of Thrift Supervision, the 
Board of Governors of the Federal Reserve System, the Office 
of the Comptroller of the Currency, and the Federal Deposit 
Insurance Corporation are authorized to request loan data from 
a representative sample of mortgage originators or the govern-
ment-sponsored enterprises regulated by these agencies, and 
mortgages originated by housing finance agencies and life insur-
ance companies, except that— 
(A) all information obtained shall be used only for 
the purposes authorized in this section; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3801 
(B) the Task Force shall maintain the confidentiality 
of all such information obtained in the manner established 
for the material by the submitting entity, and such data 
shall not be subject to release under section 552 of title 
5, United States Code; 
(C) only aggregate data shall be publicly released by 
the Task Force unless it receives the explicit permission 
of the mortgage originator or government-sponsored enter-
prise from which the information is obtained; and 
(D) any officer or employee of the Secretary, the Office 
of Thrift Supervision, the Board of Governors of the Federal 
Reserve, the Office of the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, or the Federal 
Housing Finance Board shall be subject to the penalties 
imder section 1906 of title 18, United States Code, i
f
— 
(i) by virtue of employment or official position, 
the officer or employee has possession of or access 
to any book, record, or information made available 
under this subsection and established as confidential 
under subparagraph (C); and 
(ii) the officer or employee discloses the material 
in any manner other than to an officer or employee 
of the same Federal agency employing the officer or 
employee, or other than pursuant to the exemptions 
imaer section 1906. 
(4) AGENCY RESOURCES.—The Task Force may, with the 
consent of any Federal agency or department represented on 
the Task Force, utilize the information, services, staff and 
facilities of such agency or department on a reimbursable basis, 
to assist the Task Force in carrying out its duties under this 
section. 
(5) MAILS.—The Task Force may use the United States 
mails in the same manner and under the same conditions 
as other Federal agencies. 
(6) CONfTRACTiNG.-The Task Force may, to such extent 
and in such amounts as are provided in appropriations Acts, 
enter into contracts with private firms, institutions, and individ-
uals for the purpose of discharging its duties under this section. 
(7) STAFF.—The Task Force may appoint and fix the com-
pensation of such personnel as it deems advisable, in accordance 
with the provisions of title 5, United States Code, governing 
appointments to the competitive service, and the provisions 
of chapter 51 and subchapter III of chapter 53 of such title, 
relating to classification of General Schediile pay rates. 
(g) INDEPENDENT EVALUATION.—The Comptroller General of 
the United States shall be authorized to conduct an independent 
analysis of the findings and recommendations submitted by the 
Task Force to the Congress imder this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section not to exceed $6,000,000 
for fiscal year 1993 and $6,252,000 for fiscal year 1994. Funds 
appropriated under this subsection shall remain available until 
expended. 
SEC. 544. DEFINITIONS. 
For purposes of this subtitle: 
106 STAT. 3802 
PUBLIC LAW 102-550—OCT. 28, 1992 
(1) The term "multifamily housing" means a property 
consisting of more than 4 dwelling units. 
(2) liie term ''qualified housing finance agency^ means 
any State or local housing finance agency that— 
(A) carries the designation of top tier" or its equiva-
lent, as evaluated by Standard and Poors or any other 
nationally recognized rating agency; 
(B) receives a rating of A" for its general obligation 
bonds from a nationally recognized rating agency; or 
(C) otherwise demonstrates its capacity as a sound 
and experienced agency based on, but not limited to, its 
experience in financing multifamily housing, fimd balances, 
administrative capabilities, investment policy, internal con-
trols and financial management, portfolio quality, and State 
or local support. 
(3) The term "reinsurance agreement" means a contractual 
obligation under which the Secretary, in exchange for appro-
priate compensation, agrees to assimie a specified portion of 
the risk of loss that a lender or other party has previously 
assumed with respect to a mortgage on a multifamily housing 
property. 
(4) The term "Secretary*' means the Secretary of Housing 
and Urban Development. 
TITLE VI—HOUSING FOR ELDERLY PER-
SONS AND PERSONS WITH DISABIL-
ITIES 
Subtitle A—Supportive Housing Programs 
SEC. 601. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY 
AND FOR PERSONS WITH DISABIUTIES. 
Appropriation 
(a) AGGREGATE FUNDING.—There are authorized to be appro-
authonzation. 
priated for the purpose of providing assistance in accordance with 
section 202 of the Housing Act of 1959 and section 811 of the 
Cranston-Gronzalez National Affordable Housing Act, $1,309,853,000 
for fiscal year 1993 and $1,364,866,826 for fiscalyear 1994. 
(b) ALLOCATION.—Of any amounts made available for assistance 
under the sections referred to in subsection (a), 70 percent of 
such amount shall be used for assistance in accordance with section 
202 of the Housing Act of 1959 and 30 percent of such amount 
shall be used for assistance in accordance with section 811 of 
the Cranston-Gonzalez National Affordable Housing Act. 
(c) SUPPORTIVE HOUSING FOR THE ELDERLY.—Section 202(1) of 
the Housing Act of 1959 (12 U.S.C. 1701q(l)) is amended— 
(1) by striking "AUTHORIZATIONS.—" and inserting "ALLOCA-
TION OF FUNDS.—"; 
(2) in paragraph (1)— 
(A) by striking the first sentence and inserting the 
following new sentence: "Of any amounts made available 
for assistance under this section, such sums as may be 
necessaiy shall be available for funding capital advances 
in accordance with subsection (cXD-"; and 
(B) in the second sentence, by striking "Amounts so 
appropriated" and inserting "Such amounts"; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3803 
(3) by striking paragraph (2) and inserting the following 
new paragraph: 
"(2) PROJECT RENTAL ASSISTANCE.—Of any amounts made 
available for assistance under this section, such sums as may 
be necessary shall be available for funding project rental assist-
ance in accordance with subsection (c)(2).''; and 
(4) in paragraph (3), by striking "under this subtitle" and 
inserting "for assistance under this section". 
(d) SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.— 
Section 811(1) of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 8013(1)) is amended— 
(1) by striking "AUTHORIZATIONS.—" and inserting "ALLOCA-
TION OF FUNDS.—"; 
(2) in paragraph (1)— 
(A) by striking the first sentence and inserting the 
following new sentence: "Of any amounts made available 
for assistance under subsection (b), such sums as may 
be necessary shall be available for funding capital advances 
in accordance with subsection (cXl)."; and 
(B) in the second sentence, by striking "Amounts so 
appropriated" and inserting "Such amounts"; 
(3) by striking paragraph (2) and inserting the following 
new paragraph: 
"(2) PROJECT RENTAL ASSISTANCE.—Of any amounts made 
available for assistance under subsection (b), such sums as 
may be necessary shall be available for funding project rental 
assistance in accordance with subsection (c)(2)."; 
(4) by redesignating paragraphs (1) and (2) (as so amended) 
as paragraphs (2) and (3), respectively; and 
. 
(5) by inserting before paragraph (2) (as so redesignated) 
the following new paragraph: 
"(1) ALLOCATION.—Of any amount made available for 
assistance under this section in any fiscal year, an amount 
shall be used for assistance under subsection (b) that is not 
less than the amount made available in appropriation Acts 
for such assistance in the preceding year, and the remainder 
shall be available for tenant-based assistance under subsec-
tion (n).". 
SEC. 602. SUPPORTIVE HOUSING FOR THE ELDERLY. 
(a) TECHNICAL CORRECTIONS.—Section 202 of the Housing Act 
of 1959 (12 U.S.C. 1701q), as amended by section 801(a) of the 
Cranston-(jronzalez National Affordable Housing Act, is amended— 
(1) in subsection (g)(1), by striking "and persons with 
disabilities"; and 
(2) in subsection (i)(l)(A), by striking "persons with disabil-
ities" and inserting "elderly persons". 
(b) REPEAL OF REQUIREMENT FOR STATE AND LOCAL CERTIFI-
CATION OF SERVICES.—Section 202(e) of the Housing Act of 1959 
(12 U.S.C. 1701q(e)), as amended by section 801(a) of the Cranston-
Gronzalez National Affordable Housing Act, is amended— 
(1) by striking paragraph (5); and 
(2) by redesignating paragraphs (6) and (7) as paragraphs 
(5) and (6), respectively. 
(c) SELECTION CRITERL^.—Section 202(f)(2) of the Housing Act 
of 1959 (12 U.S.C. 1701q(0(2)) is amended by adding at the end 
106 STAT. 3804 
PUBLIC LAW 102-550—OCT. 28, 1992 
", taking into consideration the availability of public housing for 
the elderly and vacancy rates in such facilities". 
(d) ELDER COTTAGE HOUSING.— 
(1) IMPLEMENTATION.—Section 806(b) of the Cranston-Gon-
zalez National Affordable Housing Act (12 U.S.C. 170 Iq note) 
is amended to read as follows: 
*'(b) DEMONSTRATION PROGRAM.— 
"(1) IN GENERAL.—^The Secretary of Housing and Urban 
Development shall carry out a program to determine the fea-
sibility of including, as an eligible development cost under 
section 202 of the Housing Act of 1959, the cost of purchasing 
and installing elder cottage housing opportunity units that 
are small, freestanding, barrier-free, energy efficient, remov-
able, and designed to be installed adjacent to existing 1- to 
4-family dwellings. In conducting the demonstration, the Sec-
retary shall determine whether the durability of such units 
is appropriate for making such units generally eligible for 
assistance under the programs under such sections. 
"(2) ALLOCATION.—Notwithstanding any other law, the Sec-
retary shall reserve from any amounts available for capital 
advances and project rental assistance under section 202 of 
the Housing Act of 1959, amounts sufficient in each of ffscal 
years 1993 and 1994 to provide not less than 100 units under 
the demonstration under this subsection in connection with 
each such section. Any amounts reserved under this paragraph 
shall be available only for carrying out the demonstration under 
this subsection and, for purposes of the demonstration, the 
cost of purchasing and installing an elder cottage housing 
opportunity unit shall be considered an eligible development 
cost imder sections 202 of the Housing Act of 1959. 
"(3) REPORT.—Not later than January 1, 1994, the Sec-
retary shall submit a report to the Congress on the results 
of the demonstration under this subsection, which shall be 
based on actual experience in implementing this subsection. 
Regulations. 
«(4) IMPLEMENTATION.—The Secretary shall issue regula-
tions to carry out the demonstration under this subsection 
not later than the expiration of the 6-month period beginning 
on the date of the enactment of the Housing and Community 
Development Act of 1992.". 
(e) ACCESS TO RESIDUAL RECEIPTS.—Section 202(j) of the Hous-
ing Act of 1959 (12 U.S.C. 1701qO*)) is amended by adding at 
the end the following new paragraph: 
"(6) ACCESS TO RESIDUAL RECEIPTS.—^The Secretary shall 
authorize the owner of a project assisted imder this section 
to use any residual receipts held for the project in excess 
of $500 per unit (or in excess of such other amount prescribed 
by the Secretary based on the needs of the project) for activities 
to retrofit and renovate the project described under section 
802(d)(3) of the Cranston-Gonzalez National Affordable Housing 
Act, to provide a service coordinator for the project as described 
in section 802(d)(4) of such Act, or to provide supportive services 
(as such term is defined in section 802(k) of such Act) to 
residents of the project. Any owner that uses residual receipts 
under this paragraph shall submit to the Secretary a report, 
not less than annually, describing the uses of the residual 
receipts. In determining the amount of project rental assistance 
to be provided to a project under subsection (c)(2) of this section. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3805 
the Secretary may take into consideration the residual receipts 
held for the project only if, and to the extent that, excess 
residual receipts are not used under this paragraph.". 
(f) WAIVER OF OWNIER DEPOSIT.—Section 202(jX3)(B) of the 
Housing Act of 1959 (12 U.S.C. 1701q(jX3)(B)) is amended bv adding 
at the end the following new sentence: "The Secretary shall reduce 
or waive the requirement of the owner deposit under paragraph 
(1) in the case of a nonprofit applicant that is not affiliated with 
a national sponsor, as determined by the Secretary.". 
(g) NONMETROPOLITAN ALLOCATION.—Section 202(1)(4) of the 
Housing Act of 1959 (12 U.S.C. 1701a(l)(3)) is amended by striking 
"20 percent" and inserting "15 percent . 
SEC. 603. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. 
Section 811(kX6) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013(kX6)) is amended— 
(1) by striking "incorporated private"; 
(2) by redesignating subparagraphs (A), (B), and (C), as 
subparagraphs (B), (C), and (D), respectively; and 
(3) by inserting after "foundation— 
the following new 
subparagraph: 
"(A) that has received, or has temporary clearance 
to receive, tax-exempt status under section 501(cX3) of 
the Internal Revenue Code of 1986;". 
SEC. 604. REVISED CONGREGATE HOUSING SERVICES PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 802(nXl) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8011(n)(l)) is amended by striking the matter preceding subpara-
graph (A) and inserting the following: 
"(1) AUTHORIZATION AND USE.—^There are authorized to Appropriation 
be appropriated to carry out this section $21,000,000 for fiscal 
authorization. 
year 1993, and $21,882,000 for fiscal year 1994, of which not 
more than—". 
(b) SUPPLEMENTAL CONTRIBUTIONS.—Section 802(iXlXBXi) of 
the Cranston-Gronzalez National Affordable Housing Act (42 U.S.C. 
8011(iXlXBXi)) is amended by striking "3-year 
each place it 
appears and inserting "6-vear". 
(c) REGULATIONS.— 
42 use son 
(1) INTERIM REGULATIONS.—Not later than the expiration 
"°^^ 
of the 30-day period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Development 
and the Secretary of Agriculture shall submit to the Congress 
a copy of proposed interim regulations implementing section 
802 of the Cranston-Gronzalez National Affordable Housing Act 
with respect to eligible federally assisted housing (as such 
term is defined in section 802(k) of such Act) administered 
by each such Secretary. Not later than the expiration of the 
45-day period beginning on the date of the enactment of this 
Act, but not before the expiration of the 15-day period beginning 
upon the submission of the proposed interim regulations to 
the Congress, each such Secretary shall publish interim regula-
tions implementing such section 802, which shall take effect 
upon publication. 
(2) FINAL REGULATIONS.—Not later than the expiration of 
the 90-day period beginning upon the publication of interim 
regulations under paragraph (1), each such Secretary shall 
issue final regulations implementing section 802 of the Cran-
106 STAT. 3806 
PUBLIC LAW 102-550—OCT. 28, 1992 
ston-Gonzalez National Affordable Housing Act after notice and 
opportunity for public comment regarding the interim regula-
tions, pursuant to the provisions of section 553 of title 5, 
United States Code (notwithstanding subsections (a)(2), (bXB), 
and (d)(3) of such section). The duration of the period for 
public comment under such section 553 shall be not less than 
60 days, and the final regulations shall take effect upon 
issuance. 
(3) FAILURE UNDER 1990 ACT.—This subsection may not 
be construed to authorize any failure to comply with the 
requirements of section 802(m) of the Cranston-Gonzalez 
National Affordable Housing Act. 
SEC. 
6
0
6
. 
HOPE 
FOR 
ELDERLY 
INDEPENDENCE. 
(a) SECTION 8 ASSISTANCE.—Section 803(j) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8012(j)) is 
amended to read as follows: 
"(j) SECTION 8 FUNDING.—The budget authority available imder 
section 5(c) of the United States Housing Act of 1937 for assistance 
under sections 8(b) and 8(o) of such Act is authorized to be increased 
by $38,288,000 on or after October 1, 1992, and by $39,896,096 
on or after October 1, 1993. The amounts made available under 
this subsection shall be used only in connection with the demonstra-
tion under this section. 
(b) SUPPORTIVE SERVICES AUTHORIZATION.—Section 803(k) of 
the Cranston-CJonzalez National Affordable Housing Act (42 U.S.C. 
8012(k)) is amended to read as follows: 
Appropriation 
"(k) FUNDING FOR SERVICES.—There are authorized to be appro-
authonzation. 
pnated for the Secretary to carry out the responsibilities for 
supportive services under the demonstrations under this section 
$10,000,000 to become available in fiscal year 1993, and $10,420,000 
to become available in fiscal year 1994. Any such amounts appro-
priated 
under 
this 
subsection 
shall remain 
available 
until 
expended.". 
(c) DEMONSTRATION PERIOD.—Section 803 of the Cranston-Gon-
zalez National Affordable 
Housing Act (42 U.S.C. 8012) is 
amended— 
(1) in subsection (a), by striking "beginning on the date 
of the enactment of this Act" and inserting "determined by 
the Secretary"; and 
(2) by striking paragraph (1) of subsection (g) and inserting 
the following new paragraph: 
"(1) The term 'demonstration period' means the 5-year 
period referred to in subsection (a).". 
SEC. 606. HOUSING OPPORTUNITIES FOR PERSONS WITH ATOS. 
(a) AMENDMENT OF CRANSTON-GONZALEZ NATIONAL HOUSING 
ACT.—^Whenever in this section an amendment is expressed in 
terms of an amendment to a section or other provision, the reference 
shall be considered to be made to a section or other provision 
of the Cranston-Gronzalez National Affordable Housing Act. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 863 (42 U.S.C. 
12912) is amended to read as follows: 
"SEC 863. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this 
subtitle $150,000,000 for fiscal year 1993 and $156,300,000 for 
fiscal year 1994.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3807 
(c) DEFINITIONS.—Section 853 (42 U.S.C. 12902) is amended— 
(1) in paragraph (2), by striking "sponsor receiving assist-
ance from a grantee" and inserting "organization eligible to 
receive assistance imder this subtitle"; 
(2) in paragraph (5), by striking "metropolitan area" and 
inserting "metropolitan statistical area"; and 
(3) by adding at the end the following new paragraphs: 
"(11) The term 'city* has the meaning given the term in 
section 102(a) of the Housing and Community Development 
Act of 1974. 
"(12) The term 'eligible person' means a person with 
acquired immunodeficiency syndrome or a related disease and 
the family of such person. 
"(13) The term 'nonprofit organization' means any nonprofit 
organization (including a State or locally chartered, nonprofit 
organization) that— 
"(A) is organized under State or local laws; 
"(B) has no part of its net earnings inuring to the 
benefit of any member, founder, contributor, or individual; 
"(C) complies with standards of financial accountability 
acceptable to the Secretary; and 
"(D) has among its purposes significant activities 
related to providing services or housing to persons with 
acquired immunodeficiency syndrome or related diseases. 
"(14) The term 'project sponsor* means a nonprofit organiza-
tion or a housing agency of a State or unit of general local 
government that contracts with a grantee to receive assistance 
under this subtitle.". 
(d) GRANT ELIGIBILITY AND ALLOCATION.—Section 854 (42 
U.S.C. 12903) is amended— 
(1) in subsection (a), by striking "and imits of general 
local government" and inserting ", units of general local govern-
ment, and nonprofit organizations"; 
(2) by striking subsection (b) and inserting the following 
new subsection: 
"(b) IMPLEMENTATION OF ELIGIBLE ACTIVITIES.—A grantee shall 
carry out eligible activities under section 855 through project spon-
sors. Any grantee that is a State that enters into a contract with 
a nonprofit organization to carry out eligible activities in a locality 
shall obtain the approval of the unit of general local government 
for the locality before entering into the contract."; 
(3) by striking paragraph (1) of subsection (c) and inserting 
the following new paragraph: 
"(1) FORMULA ALLOCATION.—The Secretary shall allocate 
90 percent of the amoimts approved in appropriation Acts luider 
section 863 among States and cities whose most recent com-
prehensive housing affordability strategy (or abbreviated strat-
egy) has been approved by the Secretary under section 105 
of this Act. Such amounts shall be allocated as follows: 
"(A) 75 percent among— 
"(i) cities that are the most populous unit of gen-
eral local government in a metropolitan statistical area 
having a population greater than 500,000 and more 
than 1,500 cases of acquired immunodeficiency syn-
drome; and 
106 STAT. 3808 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(ii) States with more than 1,500 cases of acquired 
immunodeficiency syndrome outside of metropolitan 
statistical areas described in clause (i); and 
"(B) 25 percent among cities that (i) are the most 
populous unit of general local government in a metropolitan 
statistical area having a population greater than 500,000 
and more than 1,500 cases of acquired immunodeficiency 
syndrome, and (ii) have a higher than average per capita 
incidence of acquired immunodeficiency syndrome. 
A single city may receive assistance allocated under subpara-
graph (A) and subparagraph (B), For purposes of allocating 
amounts under this paragraph for any fiscal year, the number 
of cases of acquired immunodeficiency syndrome shall be the 
number of such cases reported to and confirmed by the Director 
of the Centers for Disease Control of the Public Health Service 
as of March 31 of the fiscal year immediately preceding the 
fiscal year for which the amounts are appropriated and to 
be allocated,"; 
(4) in subsection (c)(3)— 
(A) by striking the paragraph heading and inserting 
"NONFORMULA ALLOCATION.—"; and 
(B) by striking subparagraph (A) and inserting the 
following new subparagraph: 
"(A) IN GENERAL.—The Secretary shall allocate 10 per-
cent of the amounts appropriated under section 863 
among— 
"(i) States and units of general local government 
that do not qualify for allocation of amounts under 
paragraph (1); and 
"(ii) States, units of general local government, and 
nonprofit organizations, to fund special projects of 
national significance."; 
(5) in the first sentence of subsection (d), by striking 
"approvable applications submitted by eligible applicants" and 
inserting "applications submitted by applicants and approved 
by the Secretary"; 
(6) in subsection (e), by striking "requirements of subsection 
(b)" and inserting "other requirements of this section"; and 
(7) by adding at the end the following new subsection: 
"(f) ADDITIONAL REQUIREMENT FOR CITY FORMULA GRANTEES.— 
In addition to the other requirements of this section, to be eligible 
for a grant pursuant to subsection (c)(1), a city shall provide such 
assurances as the Secretary may require that any grant amounts 
received will be allocated among eligible activities in a manner 
that addresses the needs within the metropolitan statistical area 
in which the city is located, including areas not within the jurisdic-
tion of the city. Any such city shall coordinate with other units 
of general local government located within the metropolitan statis-
tical area to provide such assurances and comply with the 
assurances.". 
(e) LIMITATION ON SPENDING FOR OTHER ACTIVITIES.—Section 
855(6) (42 U.S.C. 12904(6)) is amended by inserting before the 
period at the end the following: ", except that activities developed 
under this paragraph may be assisted only with amounts provided 
under section 854(c)(3)". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3809 
(0 
FEES AND LIMITATION ON USE OF GRANT AMOUNTS FOR 
ADMINISTRATIVE EXPENSES.—Section 856 (42 U.S.C. 12905) is 
amended— 
(1) by striking subsection (d) and inserting the following 
new subsection: 
"(d) PROHIBITION OF FEES.—The recipient shall agree that no 
fee will be charged to any eligible person for any housing or services 
provided with amounts from a grant under this subtitle."; and 
(2) by adding at the end the following new subsection: 
"(g) ADMINISTRATIVE EXPENSES.— 
"(1) GRANTEES.—^Notwithstanding any other provision of 
this subtitle, each grantee may use not more than 3 percent 
of the grant amount for administrative costs relating to admin-
istering grant amounts and allocating such amounts to project 
sponsors. 
"(2) PROJECT SPONSORS.—^Notwithstanding any other provi-
sion of this subtitle, each project sponsor receiving amounts 
from grants made under this title may use not more than 
7 percent of the amounts received for administrative costs 
relating to carrying out eligible activities under section 855, 
including the costs of staff necessary to carry out eligible 
activities.". 
(g) SHORT-TERM SUPPORTED HOUSING AND SERVICES.—Section 
858 (42 U.S.C. 12907) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3), by inserting before the period 
at the end the following: "(except that health services under 
this paragraph may only be provided to individuals with 
acquired immunodeficiency syndrome or related diseases), 
and providing technical assistance to eligible persons to 
provide assistance in gaining access to benefits and services 
for homeless individuals provided by the Federal Govern-
ment and State and local governments"; 
(B) by striking paragraphs (4) and (5); and 
(C) by adding at the end the following new paragraphs: 
"(4) OPERATION.—Providing for the operation of short-term 
supported housing provided imder this section, including the 
costs of security, operation insurance, utilities, furnishings, 
equipment, supplies, and other incidental costs. 
"(5) ADMINISTRATION.—Providing staff to carry out the pro-
gram under this section (subject to the provisions of section 
856(g))."; and 
(2) in subsection (b)— 
(A) in paragraph (2)— 
(i) by striking subparagraph (B); 
(ii) in subparagraph (C), by striking "limitations 
under subparagraphs (A) and (B)" and inserting 
"limitation under subparagraph (A)"; and 
(iii) by redesignating subparagraph (C) (as so 
amended) as subparagraph (B); and 
(B) in paragraph (3), by adding at the end the following 
new subparagraph: 
"(C) WAIVER.—Notwithstanding subparagraphs (A) and 
(B), the Secretary may waive the applicability of the 
requirements imder such subparagraphs with respect to 
any individual for which the project sponsor has made 
106 STAT. 3810 
PUBLIC LAW 102-550—OCT. 28, 1992 
a good faith effort to acquire permanent housing (in accord-
ance with paragraph (4)) and has been unable to do so.", 
(h) RENTAL ASSISTANCE.— 
(1) IN GENERAL.—Section 859 (42 U.S.C. 12908) is 
amended— 
(A) by striking the section heading and inserting the 
following new section heading: 
"SEC. 869. RENTAL ASSISTANCE."; 
(B) in the first sentence of subsection (aXD, by striking 
"short-term"; and 
(C) by adding at the end the following new subsection: 
"(c) ADMINISTRATIVE COSTS.—^A project sponsor providing rental 
assistance under this section may use amounts from any grant 
received under this section for administrative expenses involved 
in providing such assistance, subject to the provisions of 856(g)(2).". 
(2) CONFORMING AMENDMENT.—Section 855(3) (42 U.S.C. 
12904(3)) is amended by striking "short-term". 
(i) COMMUNITY RESIDENCES AND SERVICES.—Section 861(c) (42 
U.S.C. 12910(c)) is amended— 
(1) in paragraph (IXC), by inserting before the period at 
the end the following: ", and expenses relating to community 
outreach 
and educational 
activities 
regarding 
acquired 
immunodeficiency s3rndrome and related diseases provided for 
individuals residing in proximity of eligible persons assisted 
under this subtitle"; and 
(2) by striking paragraph (3) and inserting the following 
new paragraph: 
"(3) 
ADMINISTRATIVE 
EXPENSES,—For 
administrative 
expenses related to the planning and carrying out activities 
under this section (subject to the provisions of section 856(g)).". 
(j) ELIGIBILITY OF FAMILIES.— 
(1) Section 852 (42 U.S.C. 12901) is amended by inserting 
"and families of such persons" before the period at the end. 
(2) Section 854(cX3) (42 U.S.C. 12903(cX3)) is amended 
by striking "persons with acquired immunodeficiency syndrome" 
and inserting "eligible persons" each place it appears. 
(3) Section 855 (42 U.S.C. 12904) is amended— 
(A) in the matter preceding paragraph (1), by striking 
"such persons with acquired immunodeficiency syndrome" 
and inserting "eligible persons"; and 
(B) in paragraph (5), by striking "with acquired 
immunodeficiency syndrome". 
(4) Section 856(c) (42 U.S.C. 12905(c)) is amended by strik-
ing "such individuals" and inserting "such eligible persons". 
(5) Section 858(aX3) (42 U.S.C. 12907(aX3)) is amended 
by striking "individuals" and inserting "eligible persons". 
(6) Section 859(bXl) (42 U.S.C. 12908(bXl)) is amended 
by striking "individuals" and inserting "eligible persons". 
(7) Sections 859(bX2) and 860(bX2) (42 U.S.C. 12908(b), 
12909(bX2)) are amended 
by inserting 
"with 
acquired 
immunodeficiency syndrome or related diseases" after "any 
individual" each place it appears. 
(8) Section 861(a) (42 U.S.C. 12910(a)) is amended by strik-
ing "persons with acquired immunodeficiency syndrome or 
related diseases" and inserting "eligible persons . 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3811 
(9) Section 861(bXlXAXiv) (42 U.S.C. 12910(bXlXAXiv)) 
is amended by striking "such individiials" and inserting "such 
eligible persons". 
(10) Section 861(dXl) (42 U.S.C. 12910(dXl)) is amended— 
(A) in subparagraph (A), by striking "individuals" and 
inserting "eligible persons"; and 
(B) in subparagraph (D), by inserting "with acquired 
immunodeficiency syndrome or related diseases" after "any 
individual". 
(11) Subtitle D of title VIII of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12901 et seq.) 
is 
amended 
by 
striking 
"individuals 
with 
acquired 
immunodeficiency sjmdrome or related diseases" each place 
it appears in the following provisions and inserting "eligible 
persons": 
(A) Section 856(c). 
(B) Section 857. 
(C) Section 858— 
(i) in subsection (a), in the matter preceding para-
graph (1); and 
(ii) in subsection (bXl)(A); 
(D) Section 859(aXl). 
(E) Section 861— 
(i) in subsection (b); and 
(ii) in subsection (d). 
(k) REGULATIONS.— 
(1) INTERIM REGULATIONS.—Not later than the expiration 
of the 30-day period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Development 
shall submit to the Congress a copy of proposed interim regula-
tions implementing subtitle D of title ^11 of the Cranston-
(jionzalez National Affordable Housing Act (as amended by 
this section). Not later than the expiration of the 45-day period 
beginning on the date of the enactment of this Act, but not 
before the expiration of the 15-day period beginning upon the 
submission of the proposed interim regulations to the Congress, 
the Secretary shall publish interim regulations implementing 
such subtitle (as amended), which shall take effect upon 
publication. 
(2) FINAL REGULATIONS.—Not later than the expiration of 
the 90-day period beginning upon the publication of interim 
regulations under paragraph (1), the Secretary shall issue final 
regulations implementing subtitle D of title VIII of the Cran-
ston-Gonzalez National Affordable Housing Act (as amended 
by this section) after notice and opportunity for public comment 
regarding the interim regulations, pursuant to the provisions 
of section 553 of title 5, United States Code (notvdthstanding 
subsections (aX2), (bXB), and (dX3) of such section). The dura-
tion of the period for public comment under such section 553 
shall be not less than 60 days, and the final regulations shall 
take effect upon issuance. 
42 use 12905. 
42 u s e 12906. 
42 u s e 12907. 
42 use 12908. 
42 u s e 12910. 
42 use 12901 
note. 
106 STAT. 3812 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle B—Authority for Public Housing 
Agencies To Provide Designated Public 
Housing and Assistance for Disabled 
Families 
SEC. 621. DEFINITIONS. 
Paragraph 3 of section 3(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(bX3)) is amended to read as follows: 
"(3) PERSONS AND FAMILIES.— 
"(A) SINGLE PERSONS.—The term 'families' includes families 
consisting of a single person in the case of (i) an elderly person, 
(ii) a disabled person, (iii) a displaced person, (iv) the remaining 
member of a tenant family, and (v) any other single persons. 
In no event may any single person imder clause (v) of the 
first sentence be provided a housing unit assisted under this 
Act of 2 or more bedrooms. In determining priority for admis-
sion to housing under this Act, the Secretary shall give pref-
erence to single persons who are elderly, disabled, or displaced 
persons before single persons who are eligible under clause 
(v) of the first sentence. 
"(B) FAMILIES.—^The term 'families' means families with 
children, in the cases of elderly families, near-elderly families, 
and disabled families, means families whose heads (or their 
spouses), or whose sole members, are elderly, near-elderly, or 
persons with disabilities, respectively. The term includes, in 
the cases of elderly families, near-elderly families, and disabled 
families, 2 or more elderly persons, near-elderly persons, or 
persons with disabilities living together, and 1 or more such 
persons living with 1 or more persons determined under the 
regulations of the Secretary to be essential to their care or 
well-being. 
"(C) ABSENCE OF CHILDREN.—The temporary absence of 
a child from the home due to placement in foster care shall 
not be considered in determining family composition and family 
size. 
"(D) ELDERLY PERSON.—The term 'elderly person* means 
a person who is at least 62 years of age. 
"(E) PERSON WITH DISABILITIES.—^The term 'person with 
disabilities' means a person who— 
"(i) has a disability as defined in section 223 of the 
Social Security Act, 
"(ii) is determined, pursuant to regulations issued by 
the Secretary, to have a physical, mental, or emotional 
impairment which (I) is expected to be of long-continued 
and indefinite duration, (II) substantially impedes his or 
her ability to live independently, and (III) is of such a 
nature that such ability could be improved by more suitable 
housing conditions, or 
"(iii) has a developmental disability as defined in sec-
tion 102 of the Developmental Disabilities Assistance and 
Bill of Rights Act. 
Such term shall not exclude persons who have the disease 
of acquired immunodeficiency syndrome or any conditions aris-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3813 
ing from the etiologic agent for acquired immunodeficiency 
sjnidrome. 
"(F) 
DISPLACED PERSON.—The term 'displaced person' 
means a person displaced by governmental action, or a person 
whose dwelling has been extensively damaged or destroyed 
as a result of a disaster declared or otherwise formally recog-
nized pursuant to Federal disaster relief laws. 
"(G) NEAR-ELDERLY PERSON.—The term *near-elderly per-
son' means a person who is at least 50 years of age but below 
the age of 62.". 
SEC. 622. AUTHORITY. 
(a) IN GENERAL.—Section 7 of the United States Housing Act 
of 1937 (42 U.S.C. 1437e) is amended to read as follows: 
"DESIGNATED HOUSING 
"SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, a public housing agency whose allocation plan under sub-
section (f) (and any biannual update) has been approved by 
the Secretary may, to the extent provided in the allocation 
plan, provide public housing projects (or portions of projects) 
designated for occupancy by (A) only elderly families, (B) only 
disabled families (subject to the provisions of subsection (e)), 
or (C) elderly and disabled families. 
"(2) PRIORITY FOR OCCUPANCY.—In determining priority for 
admission to public housing projects (or portions of projects) 
that are designated for occupancy as provided in paragraph 
(1), the public housing agency may make units in such projects 
(or portions) available only to the types of families for whom 
the project is designated. Among such types of families, pref-
erence for occupancy in such projects (or portions) shall be 
given according to the preferences for occupancy under section 
6(c)(4)(A). 
"(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.—If a public 
housing agency determines (in accordance with regulations 
established by the Secretary) that there are insufficient num-
bers of elderly families to fill all the units in a project (or 
portion of a project) designated under paragraph (1) for occu-
pancy by only elderly families, the agency may (pursuant to 
the approved allocation plan under subsection (f) for the agency) 
provide that near-elderly families who qualify for preferences 
for occupancy under section 6(c)(4)(A) may occupy dwelling 
units in the project (or portion). 
"(4) VACANCY.—Notwithstanding the authority under para-
graphs (1) and (2) to designate public housing projects (or 
portions of projects) for occupancy by only certain types of 
families, a public housing agency shall make any dwelling 
unit that is ready for occupancy in such a project (or portion 
of a project) that has been vacant for more than 60 consecutive 
days generally available for occupancy (subject to the require-
ments of this title) without regard to such designation. 
"(b) AVAILABILITY OF HOUSING.— 
"(1) TENANT CHOICE.—^The decision of any disabled family 
not to occupy or accept occupancy in an appropriate type of 
project or assistance made available to the family under this 
title shall not adversely affect the family with respect to a 
106 STAT. 3814 
PUBLIC LAW 102-550—OCT. 28, 1992 
public housing agency making available occupancy in other 
appropriate projects in public housing or assistance under this 
title. 
"(2) DISCRIMINATORY SELECTION.—Paragraph (1) shall not 
apply to any family who decides not to occupy or accept an 
appropriate dwelling unit in public housing or to accept assist-
ance iinder this Act on the basis of the race, color, religion, 
sex, disability, familial status, or national origin of occupants 
of housing or the surrounding area. 
"(3) APPROPRIATENESS OF DWELLING UNITS.—This section 
may not be construed to require a public housing agency to 
offer occupancy in any dwelling unit assisted under this Act 
to any family who is not of appropriate family size for the 
dwelling unit. 
"(c) PROHIBITION OF EviCTiONS.^Any tenant who is lawfully 
residing in a dwelling unit in the project may not be evicted or 
otherwise required to vacate such imit because of the designation 
of the project (or portion of a project) or because of any action 
taken by the Secretary of Housing and Urban Development or 
any public housing agency pursuant to this section. 
^'(d) ACCOMMODATION OF HOUSING AND SERVICE NEEDS.—In 
designing, developing, otherwise acquiring and operating, designat-
ing, and providing housing and assistance under this title, each 
public housing agency shall meet, to the extent practicable, the 
housing and service needs of eligible families applying for assistance 
under this title, as provided in any allocation plan of the agency 
approved under subsection (f). To meet such needs, public housing 
agencies may, wherever practicable and in accordance with any 
allocation plan of the agency— 
"(1) provide housing in which supportive services are pro-
vided, facilitated, or coordinated, mixed housing, shared hous-
ing, family housing, group homes, congregate housing, and 
other 
housing as the public housing agency 
considers 
appropriate; 
"(2) carry out major reconstruction of obsolete public hous-
ing projects and reconfiguration of public housing dwelling 
units; and 
"(3) 
provide 
tenant-based 
assistance 
under 
section 
811(b)(1). 
"(e) APPLICATION FOR DESIGNATED HOUSING FOR DISABLED 
FAMILIES.— 
"(1) REQUIREMENT.—^A project (or portion of a project) may 
be designated under subsection (a)(1) for occupancy by only 
disabled families only if the public housing agency administer-
ing the project complies with the other requirements of this 
section and the Secretary approves an application under this 
subsection for such designation. The Secretary shall establish 
the form and procedures for submission and approval of applica-
tions under this subsection. 
"(2) CONTENTS.—^An application under this subsection shall 
contain— 
"(i) a description of the projects (or portions of 
projects) to be designated (which may include group 
homes, independent living facilities, units in multifam-
ily housing 
developments, 
condominium 
housing, 
cooperative housing, and scattered site housing); 
"(ii) a supportive service plan— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3815 
"(I) describing the needs of persons with 
disabilities that the housing is expected to serve; 
"(11) providing for delivery of supportive serv-
ices appropriate to meet the individual needs of 
persons with disabilities occupying the housing; 
"(III) describing the experience of the applicant 
(or service providers) in providing such services; 
"(IV) describing the manner in which such 
services will be provided to such persons; and 
"(V) identifying any State, local, other Federal, 
or other funds 
available for providing 
such 
services; and 
"(iii) any other information or certification that 
the Secretary considers appropriate. 
"(3) APPROVAL.—^The Secretary may approve an application 
under this subsection only if the Secretary determines that— 
"(i) the persons with disabilities occupying the. 
housing will receive supportive services based on their 
individual needs; 
"(ii) the applicant (or service providers) have suffi-
cient experience in providing supportive services; 
"(iii) residential supervision will be provided in 
the housing sufficient to facilitate the provision of 
supportive services; and 
"(iv) the 
supportive 
services 
are 
adequately 
designed to meet the special needs of the tenants. 
"(4) SUPPORTIVE SERVICES.—For purposes of this sub-
section, the term 'supportive services' means services designed 
to meet the special needs of tenants, and may include meal 
services, healtn-related services, mental health services, serv-
ices for nonmedical counseling, meals, transportation, personal 
care, bathing, toileting, housekeeping, chore assistance, safety, 
group and socialization activities, assistance with medications 
(in accordance with any applicable State laws), case manage-
ment, personal emergency response, and other appropriate 
services. 
"(f) ALLOCATION PLANS.— 
"(1) REQUIREMENT.—^A public housing agency may not des-
ignate a project (or portion of a project) for occupancy under 
subsection (a)(1) unless the agency submits an allocation plan 
under this subsection and the plan is approved under paragraph 
(4) of this subsection. 
"(2) CONTENTS.—^An allocation plan submitted under this 
subsection by a public housing agency shall include— 
"(A) a description of the projects (or portions of projects) 
to be designated and the types of tenants occupying such 
projects (or portions); 
"(B) a aescription of the estimated pool of applicants 
for such housing, based on the waiting lists for such hous-
ing, and any information collected in the comprehensive 
housing affordability strategy under section 105 of the 
Cranston-Gonzalez National Affordable Housing Act for the 
jurisdiction within which the area served by the public 
housing agency is located; 
"((j) a statement identifying the projects or portions 
of projects (including the buildings or floors) to be des- 
^ 
ignated for occupancy under subsection (a)(1) for only cer-
106 STAT. 3816 
PUBLIC LAW 102-550—OCT. 28, 1992 
tain types of families, the types of families who will be 
eligible for occupancy in such projects (or portions), and 
the reasons for the designation; 
"(D) documentation of the number of units in the 
projects (or portions) identified under subparagraph (C) 
which became vacant and available for occupancy during 
the preceding year; 
"(E) an estimate of the number of units in the projects 
(or portions) identified under subparagraph (C) that will 
become vacant and available for occupancy during the ensu-
ing 2-year period; 
"(F) a description of the occupancy policies and proce-
dures, including procedures for maintaining waiting lists 
for eligible applicants who are elderly families or disabled 
families for occupancy in units in projects administered 
by the agency sufficient to document the number and dura-
tion of instances in which housing assistance for eligible 
applicants will be denied or delayed by the agency because 
of a lack of appropriately designated units; 
"(G) a plan for securing sufficient additional resources 
that the agency owns, controls, or has received preliminary 
notification that it will obtain, or for which the agency 
plans to apply, that will be sufficient to provide assistance 
to not less than the number of nonelderly disabled families 
that would have been housed if occupancy in such units 
were not restricted pursuant to this section; and 
"(H) any comments of agencies, organizations, or per-
sons with whom the public housing agency consults under 
paragraph (3). 
"(3) DEVELOPMENT.—In preparing the initial allocation 
plan, or updates of a plan under paragraph (5), for submission 
under this subsection, a public housing agency shall consult 
with the State or unit of general local government in whose 
jurisdiction the area served by the public housing agency is 
located, public and private service providers, advocates for the 
interest of eligible elderly families, disabled families, and fami-
lies with children, and other interested parties. 
"(4) APPROVAL.— 
"(A) CRITERIA.—^The Secretary shall approve an alloca-
tion plan, or an updated plan, submitted under this sub-
section if the Secretary determines that, based on the plan 
and comments submitted pursuant to paragraph (2)(H)— 
"(i) the information contained in the plan is com-
plete and accurate and the projections are reasonable; 
"(ii) implementation of the plan will not result 
in excessive vacancy rates in projects (or portions of 
projects) identified in paragraph (2)(C); and 
"(iii) the plan under paragraph (2)(G) can reason-
ably be achieved. 
"(B) NOTIFICATION.— 
"(i) IN GENERAL.—^The Secretary shall notify each 
public housing agency submitting an allocation plan 
under this subsection in writing of approval or dis-
approval of the plan. 
"(ii) TIMING.—^A plan shall be considered to be 
approved if the Secretary does not notify the public 
housing agency of approval or disapproval of the initial 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3817 
or revised plan within (I) 90 days after the submission 
of any plan that contains comments pursuant to para-
graph (2)(H), or (II) 45 days for any otner plan. 
"(iii) RESUBMISSION.—If the Secretary disapproves 
the plan, the Secretary shall, for a period of not less 
than 45 days following the date of disapproval, permit 
amendments to, or resubmission of, the plan. 
"(C) RULE OF CONSTRUCTION.—The approval of an 
allocation plan or updated plan under this subsection may 
not be construed to constitute approval of any request 
for assistance for major reconstruction of obsolete projects, 
assistance for development or acquisition of public housing, 
or assistance under section 811(bXl) of the Cranston-Gon-
zalez National Affordable Housing Act, that are contained 
in the plan pursuant to subparagraph (H). 
"(5) BIANNUAL UPDATE.— 
"(A) IN GENERAL.—Each public housing agency that 
owns or operates a project (or portion of a project) that 
is designated for occupancy under subsection (a)(1) shall 
update the plan of the agency under this subsection not 
less than once every 2 years, as the Secretary shall provide. 
The Secretary shall notify each public housing agency 
submitting an updated plan under this paragraph of 
approval or disapproval of the updated plan as required 
under paragraph (4XB), and the provisions of such para-
graph shall apply to updated plans under this paragraph. 
"(B) CONTENTS.—The updated plan shall include— 
"(i) a review of the data and projections contained 
in the allocation plan and the most recent update 
submitted under this subsection; 
"(ii) an assessment of the accuracy of the projec-
tions contained in such plan and update; 
"(iii) a statement of the number of times a vacancy 
was filled pursuant to subsection (aX4); 
"(iv) a statement of the number of times an applica-
tion for housing assistance by an eligible applicant 
was denied or delayed because of a lack of appro-
priately designated units; and 
"(v) a plan for adjusting the allocation, if necessary, 
in accordance with the needs identified pursuant to 
this subparagraph. 
"(C) STANDARDS FOR APPROVAL.—The Secretary shall 
establish standards for preparation, submission, and 
approval of updated plans. 
"(g) PROHIBITION OF COERCION.—^No elderly or disabled family 
residing in any public housing project may be required to accept 
services.". 
(b) OCCUPANCY PREFERENCES.—The matter preceding clause 
(i) in section 6(c)(4XA) of the United States Housing Act of 1937 
(42 U.S.C. 1437d(cX4)(A)) is amended by striking "specifically des-
ignated for elderly families" and inserting "designated for occupancy 
pursuant to section 7(a)". 
(c) DEFINITIONS.—Section 3(c) of the United Stetes Housing 
Act of 1937 (42 U.S.C. 1437a(c)) is amended by inserting after 
"project." the following new paragraphs: 
"(4) The term 'congregate housing* means low-rent housing 
with which there is connected a central dining facility where whole-
106 STAT. 3818 
PUBLIC LAW 102-550—OCT. 28, 1992 
some and economical meals can be served to occupants. Expendi-
tures incurred by a public housing agency in the operation of 
a central dining facility in connection with congregate housing 
(other than the cost of providing food and service) shall be consid-
ered a cost of operation of the project. 
"(5) The terms 'group home' and 'independent living facility* 
have the meanings given such terms in section 811(k) of the Cran-
ston-Gronzalez National Affordable Housing Act. 
SEC. 623. TENANT-BASED 
ASSISTANCE 
FOR 
PERSONS 
WITH 
DISABILITIES. 
(a) IN GENERAL.—Section 811 of the 
Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8013) is amended— 
(1) by amending the section heading to read as follows: 
'^SEC. 811. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILmES."; 
• . 
(2) in subsection (b)— 
(A) in the matter following paragraph (2)— 
(i) by moving such matter 2 ems to the right; 
and 
(ii) by striking "Such assistance" and inserting 
"assistance under this paragraph"; 
(B) by striking the subsection heading and all that 
follows through the end of paragraph (2) and inserting 
the following: 
"(b) AUTHORITY To PROVIDE ASSISTANCE.—The Secretary is 
authorized— 
"(1) to provide tenant-based rental assistance to eligible 
persons vdth disabilities, in accordance with subsection (dX4); 
and 
"(2) to provide assistance to private, nonprofit organizations 
to expand the supply of supportive housing for persons with 
disabilities, which shall be provided as— 
"(A) capital advances in accordance with subsection 
(dXD.and 
"(B) contracts for project rental assistance in accord-
ance with subsection (dX2);''; 
(3) in subsection (d)— 
(A) in paragraphs (1) and (3), by striking "this section" 
and inserting "subsection (bX2)"; and 
(B) by adding at the end the following new paragraph— 
"(4) 
TENANT-BASED 
RENTAL ASSISTANCE.—Tenant-based 
rental assistance provided under subsection (bXD may be pro-
vided only through a public housing agency that has submitted, 
and had approved, an allocation plan under section 7(f) of 
the United States Housing Act of 1937, and a public housing 
agency shall be eli^ble to apply under this section only for 
the purposes of providing such assistance. Such assistance shall 
be made available to eligible persons with disabilities and 
administered under the same rules that govern rental assist-
ance made available under section 8 of the United Stetes Hous-
ing Act of 1937. In determining the amount of assistance 
provided under subsection (bXD ibr a public housing agency, 
the Secretary shall consider the needs of the agency as 
described in the allocation plan."; 
(4) in subsection (eXD, by striking "this section" and insert-
ing "subsection (bX2)"; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3819 
(5) in subsection (f), in the first and second sentences, 
by striking "this section" and inserting "subsection (b)(2)"; and 
(6) in subsection (g), by striking "this section" and inserting 
"subsection (b)(2)". 
(b) SECTION 8 ASSISTANCE.—Section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 14370, is amended by inserting 
after subsection (h) the following new subsection: 
"(i) The Secretary may not consider the receipt by a public 
housing agency of assistance under section 811(bXl) of the Cran-
ston-(jronzalez National Affordable Housing Act, or the amount 
received, in approving assistance for the agency under this section 
or determining the amount of such assistance to be provided.". 
SEC. 624. DEVELOPMENT AND RECONSTRUCTION OF HOUSING FOR 
DISABLED FAMIUES. 
(a) 
SET-ASIDE 
OF MAJOR 
RECONSTRUCTION 
FUNDS FOR 
RECONFIGURATION OF PROJECTS.—Section 5(jX2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(jX2)), as amended 
by the preceding provisions of this Act, is further amended by 
adding at the end the following new subparagraph: 
"(G)(i) In fiscal years 1993 and 1994, the Secretanr shall commit 
for use under clause (ii) not less than 5 percent of any amounts 
reserved under subparagraph (A) for each such fiscal year. 
"(ii) The amounts referred to in clause (i) shall be available 
to public housing agencies only for use for projects (or portions 
of projects) designated for occupancy under section 7(aXl) and (e) 
by disabled families. 
"(iii) In allocating amounts reserved under this subparagraph 
among public housing agencies, the Secretary shall consider the 
need for any such amounts as identified in the allocation plans 
submitted by agencies under section 7(f).". 
(b) SET-ASIDE OF NEW CONSTRUCTION FUNDS FOR HOUSING 
DESIGNED FOR DISABLED FAMILIES AND SINGLE PERSONS.—Section 
5(j) of the United States Housing Act of 1937 (42 U.S.C. 1437c(j)) 
is amended by adding at the end the following new paragraph: 
"(3)(A) In fiscal years 1993 and 1994, the Secretary shall reserve 
for use under subparagraph (B) not less than 5 percent of any 
amounts approved in appropriation Acts for each such fiscal year 
for public housing grants under subsection (aX2) that are not des-
ignated under such Acts for use under paragraph (2) of this 
subsection for the substantial redesign, reconstruction, or redevelop-
ment of existing public housing projects, buildings, or units. 
"(B) Any amount reserved under subparagraph (A) shall be 
available only to public housing agencies that have designated 
projects (or portions of projects) for occupancy under section 7(aXl) 
tor use only for the costs of development or acquisition of public 
housing projects or buildings designated for occupancy under section 
7(aXl) and (e) by disabled families. A building so assisted may 
not contain more than 25 dwelling units, except that the Secretary 
may (in the discretion of the Secretary) waive such limitation for 
a building. 
"(C) The Secretary shall carry out a competition for budget 
authority reserved under subparagraph (A) among eligible public 
housing agencies and shall allocate such budget authority to public 
housing agencies pursuant to the competition, based on (i) the 
need of the agency for such assistance (taking into consideration 
the allocation plans submitted under section 7(f) by agencies), and 
106 STAT. 3820 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 1437a. 
42 use 1437d. 
42 use 1437/. 
42 use 1437o. 
42 use 1437a 
note. 
(ii) the extent to which the public housing projects and buildings 
to be developed or assisted meet the requirements of section 7(e).". 
(c) REQUIREMENT FOR USE OF NEW CONSTRUCTION FUNDS FOR 
PROJECTS DESIGNATED FOR ELDERLY FAMILIES.—Section 5(jXl) of 
the United States Housing Act of 1937 (42 U.S.C. 1437c(jXl)) is 
amended— 
(1) in subparagraph (D), by striking "and" at the end; 
(2) by redesignating subparagraph (E) as subparagraph 
(F); and 
(3) by adding at the end the following new subparagraph: 
"(E) in the case of an application for development of projects 
(or portions of projects) designated under section 7(aXl) for 
occupancy for elderly families, only if the agency certifies to 
the Secretary that the use of such assistance will assist in 
expanding the housing available for eligible persons with 
disabilities identified in the allocation plan for the agency 
submitted under section 7(f); and". 
SEC. 625. CONFORMING AMENDMENTS. 
(a) UNITED STATES HOUSING ACT OF 1937.—^The United States 
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended— 
(1) in section 3(bX5XB), by inserting "or disabled" after 
"elderly"; 
(2) in the last sentence of section 6(a), by striking "the 
elderly" and inserting "elderly or disabled families"; 
(3) in section 14(iXlXDXii), by striking "elderly families 
and handicapped families" and inserting "elderly and disabled 
families"; and 
(4) in section 17(cX2XGXi), by striking "the elderly" and 
inserting "elderly families". 
(b) HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974.— 
The first sentence of section 209 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 1438) is amended by striking 
"the elderly or the handicapped" and inserting "elderly or disabled 
families". 
SEC. 626. I N A P P U C A B I U T Y TO INDIAN PUBUC HOUSING. 
The amendments made by this subtitle shall not apply with 
respect to lower income housing developed or operated pursuant 
to a contract between the Secretary of Housing and Urban Develop-
ment and an Indian housing authority. 
Subtitle C—Standards and Obligations of 
Residency in Federally Assisted Housing 
42 USE 13601. 
SEC 641. COMPLIANCE BY OWNERS AS CONDITION OF FEDERAL 
ASSISTANCE. 
The Secretary of Housing and Urban Development shall require 
owners of federally assisted housing (as such term is defined in 
section 683(2)), as a condition of receiving housing assistance for 
such housing, to comply with the procedures and requirements 
established under this subtitle. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3821 
SEC. 642. COMPLIANCE 
WITH 
CRITERIA 
FOR 
OCCUPANCY AS 42 USC13602. 
REQUIREMENT FOR TENANCY. 
In selecting tenants for occupancy of units in federally assisted 
housing, an owner of such housing shall utilize the criteria for 
occupancy in federally assisted housing established by the Sec-
retary, by regulation, under section 643. If an owner determines 
that an appucant for occupancy in the housing does not meet 
such criteria, the owner may deny such applicant occupancy. 
SEC. 643. ESTABUSHMENT OF CRITERIA FOR OCCUPANCY. 
42 USC 13603. 
(a) TASK FORCE.— 
(1) ESTABLISHMENT.—To assist the Secretary in establish-
ing reasonable criteria for occupancy in federally assisted hous-
ing, the Secretary shall establish a task force to review all 
rmes, policy statements, handbooks, technical assistance memo-
randa, and other relevant documents issued by the Department 
of Housing and Urban Development on the standards and 
obligations governing residency in federally assisted housing 
and make recommendations to the Secretary for the establish-
ment of such criteria for occupeincy. 
(2) MEMBERS.—The Secretary shall appoint members to 
the task force, which shall include individuals representing 
the interests of owners, managers, and tenants of federally 
assisted housing, public housing agencies, owner and tenant 
advocacy organizations, persons with disabilities and disabled 
families, organizations assisting homeless individuals, and 
social service, mental health, and other nonprofit servicer 
providers who serve federally assisted housing. 
(3) COMPENSATION.—Members of the task force shall not 
receive compensation for serving on the task force. 
(4) DUTIES.—The task force shall— 
(A) review all existing standards, regulations, and 
guidelines governing occupancy and tenant selection poli-
cies in federally assisted housing; 
(B) review all existing standards, regulations, and 
guidelines governing lease provisions and other rules of 
occupancy for federally assisted housing; 
(C) determine whether the standards, regulations, and 
guidelines reviewed under subparagraphs (A) and (B) pro-
vide sufficient guidance to owners and managers of feder-
ally assisted housing to— 
(i) develop procedures for preselection inquiries 
sufficient to determine the capacity of applicants to 
comply with reasonable lease terms and conditions of 
occupancy; 
(ii) utilize leases that prohibit behavior which 
endangers the health or saiety of other tenants or 
violates the rights of other tenants to peaceful enjoy-
ment of the premises; 
(iii) assess the need to provide, and appropriate 
measures for providing, reasonable accommodations 
required under the Fair Housing Act and section 504 
of the Rehabilitation Act of 1973 for persons with var-
ious types of disabilities; and 
(iv) comply with civil rights laws and regulations; 
106 STAT. 3822 
PUBLIC LAW 102-550—OCT. 28, 1992 
Regulations. 
Regulations. 
(D) propose criteria for occupaiu^ in federally assisted 
housing, standards for the reasonable performance and 
behavior of tenants of federally assisted housing, compli-
ance standards consistent with the reasonable accommoda-
tion of the requirements of the Fair Housing Act and 
section 504 of the Rehabilitation Act of 1973, standards 
for compliance with other civil rights laws, and procedures 
for the eviction of tenants not complying with such stand-
ards consistent with sections 6 and 8 of the United States 
Housing Act of 1937; and 
(E) report to the Congress and the Secretary of Housing 
and Urban Development pursuant to paragraph (7). 
(5) PROCEDURE.—In carrying out its duties, the task force 
shall hold public hearings and receive written comments for 
a period of not less than 60 days. 
(6) SUPPORT.—^The Secretary of Housing and Urban Devel-
opment shsdl cooperate fiilly with the task force and shall 
provide support stafT and office space to assist the task force 
m carrying out its duties. 
(7) REPORTS.—^Not later than 3 months after the date of 
enactment of this Act, the task force shall submit to the Sec-
retary and the Congress a preliminary report describing its 
initial actions. Not later than 6 months after the date of enact-
ment of this Act, the task force shall submit a report to the 
Secretary and the Congress, which shall include— 
(A) a description of its findings; and 
(B) recommendations to revise such standards, regula-
tions, and guidelines to provide accurate and complete guid-
ance to owners and managers of federally assisted housing 
as determined necessary tmder paragraph (4). 
(b) RULEMAKING.— 
(1) AUTHORITY.—^The Secretary shall, by regulation, estab-
lish criteria for selection of tenants for occupancy in federally 
assisted housing and lease provisions for such housing. 
(2) STANDARDS.—^The criteria shall provide sufficient guid-
ance to owners and managers of federally assisted housing 
to enable them to (A) select tenants capable of complying with 
reasonable lease terms, (B) utilize leases prohibiting behavior 
which endangers the health or safety of others or violates 
the right of other tenants to peaceful enjoyment of the premises, 
(C) comply with legal requirements to make reasonable accom-
modations for persons with disabilities, and (D) comply with 
civil rights laws. The criteria shall be consistent vdth the 
requirements under subsections (k) and (1) of section 6 and 
section 8(dXl) of the United States Housing Act of 1937 and 
any similar contract and lease requirements for federally 
assisted housing. In establishing the criteria, the Secretary 
shall take into consideration the report of the task force under 
subsection (aX7). 
(3) PROCEDURE.—^Not later than 90 days after the submis-
sion of the final report under subsection (aX7), the Secretary 
shall issue a notice of proposed rulemaking of the regulations 
under this subsection providing for notice and opportunity for 
public comment regarding the regulations, pursuant to the 
provisions of section 553 of 
title 5, United States Code (notwith-
stancUng subsections (aX2), (bXB), and (dX3) of such section). 
The duration of the period for public comment under such 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3823 
section 553 shall not be less than 60 days. The Secretary 
shall issue final regulations under this subsection not later 
than the expiration of the 60-day period beginning upon the 
conclusion of the comment period, which shall take effect upon 
issuance. 
SEC. 644. ASSISTED APPLICATIONS. 
(a) AUTHORITY.—^The Secretary shall provide that any individ-
ual or family applying for occupancy in federally assisted housing 
may include in the application for the housing the name, address, 
phone number, and other relevant information of a family member, 
fiiend, or social, health, advocacy, or other organization, and that 
the owner shall treat such information as confidential. 
(b) MAINTENANCE OF INFORMATION.—The Secretary shall 
require the owner of any federally assisted housing receiving an 
application including such information to maintain such information 
for any appliccmts who become tenants of the housing, for the 
purposes of facilitating contact by the owner with such person 
or organization to assist in providing any services or special care 
for the tenant and assist in resolving any relevant tenancy issues 
arising during the tenancy of such tenant. 
(c) LIMITATIONS.—^An owner of federally assisted housing may 
not require any individual or family appljdng for occupancy in 
the housing to provide the information described in subsection 
(a). 
Subtitle D—Authority To Provide Pref-
erences for Elderly Residents and Units 
for Disabled Residents in Certain Sec-
tion 8 Assisted Housing 
Regulations. 
42 use 13604. 
SEC. 651. AUTHORITY. 
Notwithstanding any other provision of law, an owner of a 
covered section 8 housing project (as such term is defined in section 
659) designed primarily for occupancy by elderly families may, 
in selecting tenants for units in the project that become available 
for occupancy, give preference to elderly families who have applied 
for occupancy in the housing, subject to the requirements of this 
subtitle. 
SEC. 652. RESERVATION OF UNITS FOR DISABLED FAMILIES. 
(a) REQUIREMENT.—^Notwithstanding any other provision of law, 
for any project for which an owner gives preference in occupancy 
to elderly families pursuant to section 651, such owner shall (subject 
to sections 653, 654, and 655) reserve imits in the project for 
occupancy only by disabled families who are not elderly or near-
elderly families (and who have applied for occupancy in the housing) 
in the number determined under subsection (b). 
(b) NUMBER OF UNITS.—Each owner required to reserve imits 
in a project for occupancy under subsection (a) shall reserve a 
number of units in the project that is not less than the lesser 
o
f
— 
(1) the number of units equivalent to the higher o
f
— 
42 use 13611. 
42 u s e 13612. 
106 STAT. 3824 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) the percentage of units in the project that were 
occupied by such disabled families upon the date of the 
enactment of this Act; or 
(B) the percentage of units in the project that were 
occupied by such families upon January 1,1992; or 
(2) 10 percent of the number of units in the project. 
42 use 13613. 
SEC. 663. SECONDARY PREFERENCES. 
(a) INSUFFICIENT ELDERLY FAMILIES.—If an owner of a covered 
section 8 housing project in which elderly families are given a 
preference for occupancy pursuant to section 651 determines (in 
accordance with regulations established by the Secretary) that there 
are insufficient numbers of elderly families who have applied for 
occupancy in the housing to fill all the units in the project not 
reserved under section 652, the owner may give preference for 
occupancy of such units to disabled families who are near-elderly 
families and have applied for occupancy in the housing. 
(b) INSUFFICIENT NON-ELDERLY DISABLED FAMILIES.—If 
an 
owner of a covered section 8 housing project in which elderly fami-
lies are given a preference for occupancy pursuant to section 651 
determines (in accordance with regulations established by the Sec-
retary) that there are insufiicient numbers of disabled families 
who are not elderly or near-elderly families and have applied for 
occupancy in the housing to fill all the units in the project reserved 
under section 652, the owner may ^ve preference for occupancy 
of units so reserved to disabled families wno are near-elderly fami-
lies and have applied for occupancy in the housing. 
42USC13614. 
SEC. 654. GENERAL AVAILABIUTY OF UNITS. 
If an owner of a covered section 8 housing project in which 
disabled families who are near-elderly families are given a pref-
erence for occupancy pursuant to subsection (a) or (b) of section 
653 determines (in accordance with regulations established by the 
Secretary) that there are an insufficient number of such families 
to fill aJl the units in the project for which the preference is 
applicable, the owner shall make such units generally available 
for occupancy by families who have applied, and are eligible, for 
occupancy in the housing, without regard to the preferences estab-
lished pursuant to this subtitle. 
42 use 13615. 
SEC. 665. PREFERENCE WITHIN GROUPS. 
Among disabled families qualifying for occupancy in units 
reserved imder section 652, and among elderly families and near-
elderly families qualifying for preference for occupancy pursuant 
to section 651 or 653, preference for occupancy in units that are 
assisted imder section 8 of the United States Housing Act of 1937 
shall be given to disabled families according to the preferences 
for occupancy referred to in section 8(dXlXAXi) of the United States 
Housing Act of 1937 and the first sentence of section 8(oX3XB) 
of such Act, to elderly families according to such preferences, and 
to near-elderly families according to such preferences, respectively. 
42 use 13616. 
SEC. 666. PROmBITION OF EVICTIONS. 
Any tenant who, except for reservation of a percentage of the 
units of a project pursuant to section 652 or anv preference for 
occupancy established pursuant to this subtitle, is lawfully residing 
in a dwelling unit in a covered section 8 housing project, may 
not be evicted or otherwise required to vacate such unit because 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3825 
of the reservation or preferences or because of any action taken 
by the Secretary of Housing and Urban Development or the owner 
of the project pursuant to this subtitle. 
SEC. 6S7. TREATMENT OF COVERED SECTION 8 HOUSING NOT SUB- 42 USC 13617. 
JECT TO ELDERLY PREFERENCE. 
If an owner of any covered section 8 housing project designed 
primarily for occupancy by elderly families does not give preference 
in occupancy to elderly families as authorized in this subtitle, 
then elderly families (as such term was defined in section 3 of 
the United States Housing Act of 1937 before the date of the 
enactment of this Act) shall be eligible for occupancy in such housing 
to the same extent that such families were eligible before the 
date of the enactment of this Act. 
SEC. 658. TREATMENT OF OTHER FEDERALLY ASSISTED HOUSING. 
(a) RESTRICTED OCCUPANCY.—An owner of any federally 
assisted project (or portion of a project) as described in subpara-
graphs (D), (E), and (F) of section 683(2) that was designed for 
occupancy by elderly families may continue to restrict occupancy 
in such project (or portion) to elderly families in accordance with 
the rules, standards, and agreements governing occupancy in such 
housing in effect at the time of the development of the housing. 
(b) PROHIBITION OF EVICTIONS.—Any tenant who is lawfully 
residing in a dwelling tinit in a housing project described in sub-
section (a) may not be evicted or otherwise required to vacate 
such imit because of £uiy reservation or preferences under this 
subtitle or because of any action taken by the Secretary of Housing 
£uid Urban Development or the owner of the project pursuant to 
this subtitle. 
SEC. 659. COVERED SECTION 8 HOUSING. 
For purposes of this subtitle, the term "covered section 8 hous-
ing" means housing described in section 683(2XG) that was origi-
nally designed for occupancy by elderly families. 
SEC. 660. SECTION 8 PREFERENCE. 
Section 8(d) of the United States Housing Act of 1937 (42 
U.S.C. 1437fld)) is amended by adding at the end the following 
new paragraph: 
"(4) A public housing agency that serves more than one imit 
of general local government may, at the discretion of the agency, 
in allocating assistance under this section, give priority to disabled 
families that are not elderly families.". 
SEC. 661. STUDY. 
The Secretary of Housing £md Urban Development shall conduct 
a study to determine the extent to which Federal housing programs 
serve elderly families, disabled families, and families with children, 
in relation to the need of such families who are eligible for assist-
ance under such programs. The Secretary shall submit a report 
to the Congress describing the study and the findings of the study 
not later than the expiration of the 1-year period beginning on 
the date of the enactment of this Act. 
42 USC 13618. 
42 USC 13619. 
Reports. 
42 USC 13620. 
106 STAT. 3826 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle E—Service Coordinators for El-
derly and Disabled Residents of Feder-
ally Assisted Housing 
42 use 13631. 
SEC. 671. REQUIREMENT TO PROVIDE SERVICE COORDINATORS. 
(a) IN GENERAL.—^To the extent that amounts are made avail-
able to carry out this subtitle pursuEint to the amendments made 
by this subtitle, the Secretary shall require owners of covered 
federally assisted housing projects (as such term is defined in 
subsection (d)) receiving such amounts to provide for employing 
or otherwise retaining the services of one or more individuals to 
coordinate the provision of supportive services for elderly and dis-
abled families residing in the projects (in this section referred 
to as a "service coordinator"). No such elderly or disabled family 
may be required to accept services. 
(b) RESPONSIBILITIES.—Each service coordinator of a covered 
federally assisted housing project provided pursuant to this subtitle 
or the amendments made by this subtitle— 
(1) shall consult with the owner of the housing, tenants, 
any tenant organizations, any resident management organiza-
tions, service providers, and any other appropriate persons, 
to identify the particular needs and characteristics oi elderly 
and disabled families who reside in the project and any support-
ive services related to such needs and characteristics; 
(2) shall manage and coordinate the provision of such serv-
ices for residents of 
the project; 
(3) may provide training to tenants of the project in the 
obligations of tenancy or coordinate such training; 
(4) shall meet the minimum qualifications and standards 
required under section 802(dX4) of the Cranston-Gronzalez 
National Affordable Housing Act; and 
(5) may carry out other appropriate activities for residents 
of the project. 
(c) INCLUDED SERVICES.—Supportive services referred to under 
subsection (bXD may include health-related services, mentel health 
services, services for nonmedical counseling, meals, transportetion, 
personal care, bathing, toileting, housekeeping, chore assistence, 
safety, group and socialization activities, assistance with medica-
tions (in accordance with any applicable Stete laws), case manage-
ment, personal emergency response, and other appropriate services. 
The services may be provided through any agency of the Federal 
Grovemment or any other public or private department, agency, 
or organization. 
(d) COVERED FEDERALLY ASSISTED HOUSING.—For purposes of 
this subtitle, the term "covered federally assisted housing^^ means 
housing that is federally assisted housing (as such term is defined 
in section 683(2), except that such term does not include housing 
described in subparagraphs (C) and (D) of such section. 
SEC. 672. REQUIRED TRAINING OF SERVICE COORDINATORS. 
Section 802(dX4) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8011(dX4)) is amended by inserting after 
the period at the end of the first sentence beginning after siibpara-
graph (E) the following new sentence: "Such qualifications and 
stendards shall include requiring each service coordinator to be 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3827 
trained in the aging process, elder services, disability services, 
eligibility for and proceaures of Federal and applicable State entitle-
ment propp*am8, legal liability issues relating to providing service 
coordination, drug and alcohol use and abuse by the elderly, and 
mental healtii issues.". 
SEC. 673. COSTS OF PROVIDING SERVICE COORDINATORS IN PUBUC 
HOUSING. 
Section 9(aXlXB) of the United States Housing Act of 1937 
(42 U.S.C. 1437g(aXlXB)) is amended— 
(1) in the first sentence, by redesignating clauses (i) and 
(ii) as subclauses (I) and (II), respectively; 
(2) in the second sentence— 
(A) by striking "subpara^aph" and inserting "clause"; 
(B) by inserting "or section 802 of the Cranston-Gon-
zalez National Affordable Housing Act" after "Congregate 
Housing Services Act of 1978"; and 
(C) by inserting a period after "section 811 of the 
Cranston-Gonzalez National Affordable Housing Act"; 
(3) by inserting "(i)" after the subparagraph designation; 
and 
(4) by adding at the end the following new clause: 
"(ii) Annual contributions under this section to any public hous-
ing agency for any project may be used, with respect to such 
project, for (I) the cost of employing or otherwise retaining the 
services of one or more service coordinators under section 661 
of the Housing and Community Development Act of 1992 to coordi-
nate the provision of any supportive services within the project 
for residents of the project who are elderly families and disabled 
families, and (II) expenses for the provision of such services for 
such residents of the project. Not more than 15 percent of the 
cost of the provision o
f
^ such services may be provided under this 
section. Services may not be provided under this clause for any 
person receiving assistance under the Congregate Housing Services 
Act of 1978 or section 802 of the Cranston-Gonzalez National Afford-
able Housing Act. The budget authority available imder section 
5(c) for assistance under this section is authorized to be increased 
by $30,000,000 on or after October 1, 1992, and by $30,000,000 
on or after October 1, 1993. Amounts made available under this 
clause shall be used to provide additional annual contributions 
to public housing agencies only for the purpose of providing service 
coordinators and services under this clause for public housing 
projects.". 
SEC. 674. COSTS 
OF 
PROVIDING 
SERVICE 
COORDINATORS 
IN 
PROJECT-RASED SECTIONS HOUSING. 
Section 8(dX2) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(dX2)) is amended by adding at the end the following 
new subparagraph: 
"(FXi) In determining the amount of assistance provided under 
an assistance contract for project-based assistance under this para-
graph or a contract for assistance for housing constructed or 
substantially rehabilitated pursuant to assistance provided under 
section 8(bX2) of this Act (as such section existed immediately 
before October 1, 1983), the Secretary may consider and annually 
adjust, with respect to such project, for the cost of employing or 
otherwise retaining the services of one or more service coordinators 
under section 661 of the Housing and Community Development 
106 STAT. 3828 
PUBLIC LAW 102-550—OCT. 28, 1992 
Act of 1992 to coordinate the provision of any services within 
the project for residents of the project who are elderly or disabled 
families. 
"(ii) The budget authority available under section 5(c) for assist-
ance under this section is authorized to be increased by $15,000,000 
on or after October 1, 1992, and by $15,000,000 on or after October 
1, 1993. Amounts made avsdlable under this subparagraph shall 
be used to provide additional sunounts under annual contributions 
contracts for assistance under this section which shall be made 
available through assistance contracts ovly for the purpose of 
providing service coordinators under clause (i) for projects receiving 
project-based assistance under this paragraph ana to provide addi-
tional amounts imder contracts for assistance for projects con-
structed or substantiallv rehabilitated pursuant to assistance pro-
vided under section 8(bX2) of this Act (as such section existed 
immediately before October 1,1983) only for such purpose.". 
SEC. 67S. COSTS OF PROVIDING SERVICE COORDINATORS FOR FAMI-
LIES RECEIVING FEDERAL TENANT-BASED ASSISTANCE. 
Section 8(q) of the United States Housing Act of 1937 (42 
U.S.C. 1437fi:q)) is amended— 
(1) by redesi^ating paragraph (3) as paragraph (4); and 
(2) bv insertmg after paragraph (2) the following new 
paragrapn: 
(3XA) Fees under this subsection may be used for the costs 
of employing or otherwise retaining the services of one or more 
service coormnators under section 661 of the Housing and Commu-
nity Development Act of 1992 to coordinate the provision of support-
ive services for elderly families and disabled families on wnose 
behalf tenant-based assistance is provided under this section or 
section 811(bXl)- Such service coordinators shall have the same 
responsibilities with respect to such families as service coordinators 
of covered federally assisted housing projects have under section 
661 of such Act with respect to residents of such projects. 
"(B) To the extent amounts are provided in appropriation Acts 
under subparagraph (C), the Secretary shall increase fees under 
this subsection to provide for the costs of such service coordinators 
for public housing agencies. 
"(C) The budget authority available under section 5(c) for assist-
ance under this section is authorized to be increased by $5,000,000 
on or after October 1, 1992, and bv $5,000,000 on or after 
October 1, 1993. Amounts made available under this subparagraph 
shall be used to provide additional amounts imder annual contribu-
tions contracts for increased fees under this subsection, which shall 
be used only for the purpose of providing service coordinators for 
public housing agencies described m subparagraph (A).". 
42 use 13632. 
SEC. 676. GRANTS FOR COSTS OF PROVIDING SERVICE COORDINA-
TORS IN MULTIFAMILY HOUSING ASSISTED UNDER 
NATIONAL HOUSING ACT. 
(a) AUTHORITY.—^The Secretary may make grants under this 
section to owners of federally assisted housing projects described 
in subparagraphs (E) and (F) of section 683(2). Any grant amounts 
shall be used for the costs of employing or otherwise retaining 
the services of one or more service coordinators under section 661 
to coordinate the provision of any services within the project for 
residents of the project who are elderly families and disabled fami-
lies (as such terms are defined in section 683 of this Act). 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3829 
(b) APPUCATION AND SELECTION.—The Secretary shall provide 
for the form and manner of applications for grants under this 
section and for selection of applicants to receive such grants. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for fiscal years 1993 and 1994 such sums as 
may be necessary for grants imder this section. 
(d) EUGIBLE PROJECT EXPENSE.—For any federally assisted 
housing project described in subparagraph (E) or (F) of section 
683(2) that does not receive a grant under this section, the cost 
of emplojdng or otherwise retaming the services of one or more 
service coordinators under section 661 and not more than 15 percent 
of the cost of providing services to the residents of the project 
shall be considered an eligible project expense, but only to the 
extent that amounts are available fi*om project rent and other 
income for such costs. 
SEC. 677. EXPANDED RESPONSIBILrnES OF SERVICE COORDINATORS 
IN SECTION 202 HOUSING. 
(a) SUPPORTIVE HOUSING FOR THE ELDERLY.—Section 202(g) 
of the Housing Act of 1959 (12 U.S.C. 1701q(g)), as amended by 
section 801 of the Cranston-Gonzalez National AiTordable Housing 
Act, is amended— 
(A) in paragraph (2), by striking the last sentence; and 
(B) by adding at the end the following new paragraph: 
"(3) SERVICE COORDINATORS.—Any cost associated with 
emplojring or otherwise retaining a service coordinator in hous-
ing assisted under this section shall be considered an eligible 
cost under subsection (cX2). If a project is receiving congregate 
housing services assistance under section 802 of the Cranston-
Gonzalez National Affordable Housing Act, the amount of costs 
provided under subsection (cX2) for the project service coordina-
tor may not exceed the additional amount necessary to cover 
the costs of providing for the coordination of services for resi-
dents of the project who are not eligible residents under such 
section 802. To the extent that amoimts are available pursuant 
to subsection (cX2) for the costs of carrying out this paragraph 
within a project, an owner of housing assisted under this section 
shall provide a service coordinator for the housing to coordinate 
the provision of services under this subsection within the hous-
ing.". 
(b) OLD SECTION 202 PROJECTS.— 
1
2 use noiq 
(1) AVAILABILITY OF SECTION S ASSISTANCE.—Subject to the "
°
*
® 
availabilitv of appropriations for contract amendments for the 
purpose of this paragraph, in determining the amoimt of assist-
ance under section 8 of the United States Housing Act of 
1937 to be provided for a project assisted under section 202 
of the Housing Act of 1959, as in efiPect before the effectiveness 
of the amendments made by section 801 of the Cranston-Gon-
zalez National Affordable Housing Act, the Secretary shall con-
sider (and annually adjust for) the costs o
f
— 
(A) employing or otherwise retaining the services of 
one or more service coordinators under section 661 of this 
Act to coordinate the provision of any services within the 
project for residents or the project who are elderly families 
ana disabled families; and 
(B) expenses for the provision of such services. 
106 STAT. 3830 
PUBLIC LAW 102-550—OCT. 28, 1992 
Not more than 15 percent of the cost of the provision of services 
A 
under subparagraph (B) may be considered under this para-
graph for purposes of determining the amount of assistance 
provided. 
(2) INAPPUCABILITY OP HUD R
E
F
O
R
M ACT PROVISIONS.—Not-
withstanding section 102 of the Department of Housing and 
Urban Development Reform Act of 1989, the provisions of para-
graphs (1), (2), and (3) of subsection (a) of such section shall 
not apply to amendments to contracts imder section 8 of the 
United States Housing Act of 1937 made to carry out the 
purposes of paragraph (1) of this subsection. 
(3) LIMITATION.—If a project is receiving congregate hous-
ing services assistance under the Congregate Housing Services 
Act of 1978 or section 802 of the Cranston-Gronzalez National 
Affordable Housing Act, the amount of costs provided pursuant 
to paragraph (1) for the project may not exceed the additional 
amoimt necessary to cover the costs of providing for the 
coordination of services for residents of the project who are 
not eligible residents under such section 802 or eligible project 
residents imder the Congregate Housing Services Act of 1978, 
as applicable. 
Subtitle F—General Provisions 
SEC. 681. COMPREHENSIVE HOUSING AFFORDABHfTY STRATEGIES. 
Section 105(b) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705(b)) is amended— 
(1) in paragraph (1) by inserting ''persons with disabilities," 
after "the elderly, ; and 
(2) by adding aft«r paragraph (16), as added by the preced-
ing provisions of this Act, the following new paragraph: 
"(17) describe the jurisdictions activities to enhance 
coordination between public and assisted housing providers 
and private and governmental health, mental health, and serv-
ice agencies.". 
SEC. 682. CONFORMING AMENDMENTS. 
(a) PUBLIC HOUSING.—Section 6(cX4) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437d(cX4)) is amended— 
(1) by striking "and" at the end of subparagraph (D); 
(2) by striking the period at the end of subparagraph (E) 
and inserting "; and"; and 
(3) by adding at the end the following new subparagraph: 
"(F) reqmring the public housing agencv to ensure 
and maintam compliance with subtitle C of title VI of 
the Housing and Community Development Act of 1992 
and any regulations issued under such subtitle.". 
(b) PROJECT-BASED SECTION 8 HOUSING.—Section 8(dX2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(dX2)), as 
amended by section 664 of this Act, is further amended by adding 
at the end the following new subparagraphs: 
"(G) An assistance contract for project-based assistance 
under this paragraph shall provide that the OMnier shall ensure 
and maintain compliance with subtitle C of title VI of the 
Housing and Community Development Act of 1992 and any 
regulations issued under such subtitle. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3831 
"(H) Notwithstanding subsection (dXlXAXi)> an owner of 
a covered section 8 housing project (as such term is defined 
in section 659 of the Housing and Communily Development 
Act of 1992) may give preference for occupancy of dwelling 
units in the project, and reserve units for occupancy, in accord-
ance with subtitle D of title VI of the Housing and Community 
Development Act of 1992.". 
(c) SUPPORTIVE HOUSING FOR THE ELDERLY.—Section 202 
of 
the Housing Act of 1959 (12 U.S.C. 1701q), as amended by section 
801 of the Cranston-Gonzalez National Affordable Housing Act, 
is amended— 
(1) in subsection (iXD, by inserting after the first sentence 
the following new sentence: "Such tenant selection procedures 
shall comply with subtitle C of title VI of the Housing and 
Community Development Act of 1992 and any regulations 
issued under such subtitle."; and 
(2) in subsection (j), by adding after paragraph (6) (as 
addeid by section 601(d) of this Act) the following new para-
graph: 
"(7) COMPLIANCE WITH HOUSING AND COMMUNITY DEVELOP-
M
E
N
T A
C
T O
F 1992.—^Each Owner shall operate housing assisted 
under this section in compliance with subtitle C of title VI 
of tiie Housing and Community Development Act of 1992 and 
any regulations issued under such subtitle.". 
SEC. 683. DEFINITIONa 
42 USC13641. 
For purposes of this title: 
(1) ELDERLY, DISABLED, AND NEAR-ELDERLY FAMILIES.—The 
terms "elderly family", "disabled family", and "near-elderly fam-
ily" have the meamngs given the terms under section 3(bX3) 
of the United States Housing Act of 1937. 
(2) FEDERALLY ASSISTED HOUSING.—The terms "federally 
assisted housing" and "project" mean— 
(A) a public housing project (as such term is defined 
in section 3(b) of the United States Housing Act of 1937); 
(B) housing for which project-based assistance is pro-
vided under section 8 of the United States Housing Act 
of 1937; 
(C) housing that is assisted under section 202 of the 
Housing Act of 1959 (as amended by section 801 of the 
Cranston-Gonzalez National Affordable Housing Act); 
(D) housing that is assisted under section 202 of the 
Housing Act of 1959, as such section existed before the 
enactment of the Cranston-Gonzalez National Affordable 
Housing Act; 
(E) housing financed by a loan or mortgage insured 
under section 221(dX3) of tne National Housing Act that 
bears interest at a rate determined imder the proviso of 
section 22 
l(dX5) of such Act; 
(F) housing insured, assisted, or held by the Secretary 
or a State or State agency under section 236 of the National 
Housing Act; and 
(G) housing constructed or substantially rehabilitated 
pursuant to assistance provided under section 8(bX2) of 
thte United States Housing Act of 1937, as in effect before 
October 1,1983, that is assisted under a contract for assist-
ance under such section. 
59-194 O—93 
7:QL3(Pt5) 
106 STAT. 3832 
PUBLIC LAW 102-550—OCT. 28, 1992 
(3) HOUSING ASSISTANCE.—The term 'liousing assistance" 
means, with respect to federally assisted housing, the grant, 
contribution, capital advance, loan, mortgage insurance, or 
other assistance provided for tiie housing under the provisions 
of law referred to in parafipraph (2). The term also includes 
any related assistance provided for the housing by the Sec-
retary, including any rental assistance for low-income occu-
pants. 
(4) OWNER.—The term "owner** means, with respect to fed-
erally assisted housing, the entity or private person, including 
a cooperative or pubuc housing agenpy, that has the legcQ 
right to lease or sublease dwelling umts in such housing. 
(5) SECRETARY.—^The term "Secretarjr** means the Secretary 
of Housing and Urban Development. 
42 use 13642. 
SEC. 684. A P P U C A B H I T Y . 
Except as otherwise provided in subtitles B through F of this 
title and the amendments made by such subtitles, such subtitles 
and the amendments made by such subtitles shall apply upon 
the expiration of the 6-month period beginning on the date of 
the enactment of this Act. 
42 use 13643. 
SEC. 685. REGULATIONa 
The Secretary shall issue relations necessary to carry out 
subtitles B through F of tiiis title and the amendments made 
by such subtitles not later than the expiration of the 6-month 
period beginning on the date of the enactment of this Act. The 
regulations shall be issued after notice and opportunity for public 
comment pursuant to the provisions of section 553 of title 5, United 
States Code (notwithstanding subsections (aX2), (bXB), and (dX3) 
of such section). 
TITLE Vn—RURAL HOUSING 
SEC. 701. PROGRAM AUTHORIZATIONS. 
(a) INSURANCE AND GUARANTEE AUTHORITY.—Section 513(aXl) 
of the Housing Act of 1949 (42 U.S.C. 1483(aXl)) is amended 
to read as follows: 
"(a) IN GENERAL.—(1) The Secretarv may, to the extent 
approved in appropriation Acts, insure and guarantee loans under 
this title during fiscal years 1993 and 1994, in aggregate amounts 
not to exceed $2,446,855,600 and $2,549,623,535, respectively, as 
follows: 
"(A) For insured or guaranteed loans under section 502 
on behalf of low-income borrowers receiving assistance under 
section 521(aXl), $1,676,484,000 for fiscal year 1993 and 
$1,746,896,328 for 
fiscal 
year 1994. 
"(B) For guaranteed loans under section 502(h) on behalf 
of low- and moderate-income borrowers, such sums as may 
be appropriated for 
fiscal 
years 1993 and 1994. 
"(C) For loans under section 504, $12,400,000 for fiscal 
year 1993 and $12,920,800 for 
fiscal 
year 1994. 
"(D) For insured loans under section 514, $16,821,600 for 
fiscal year 1993 and $17,528,107 for 
fiscal 
year 1994. 
"(E) For insured loans under section 515, $739,500,000 
for fiscal year 1993 and $770,559,000 for fiscal year 1994. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3833 
"(F) For loans under section 523(bXlXB), $800,000 for fiscal 
year 1993 and $833,600 for 
fiscal 
year 1994. 
"(G) For site loans under section 524, $850,000 for fiscal 
year 1993 and $885,700 for 
fiscal 
year 1994.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 513(b) of the 
Housing Act of 1949 (42 U.S.C. 1483(b)) is amended to read as 
follows: 
"(b) AUTHORIZATION OP APPROPRIATIONS.—There are authorized 
to be appropriated for fiscal years 1993 and 1994, and to remain 
available until expended, the following amounts: 
"(1) For grants under section 502(fKl), $1,100,000 for fiscal 
year 1993 and $1,146,200 for 
fiscal 
year 1994. 
"(2) For grants under section 504, $21,100,000 for fiscal 
year 1993 and$21,986,200 for 
fiscal 
year 1994. 
"(3) For purposes of section 509(c), $600,000 for fiscal year 
1993 and $625,200 for 
fiscal 
year 1994. 
"(4) For project preparation grants under section 509(fX6), 
$5,300,000 in fiscal year 1993 and $5,522,600 in fiscal year 
1994. 
"(5) In fiscal years 1993 and 1994, such sums as may 
be necessary to meet payments on notes or other obligations 
issued by the Secretary under section 511 equal to— 
"(A) tlie aggregate of the contributions made by the 
Secretary in the form of credits on principal due on locuis 
made pursuant to section 503; and 
"(B) the interest due on a similar sum represented 
bv notes or other obUgations issued by the Secretary. 
"(6) For grants for service coordinators under section 515(y), 
$1,000,000 in fiscal year 1993 and $1,042,000 in fiscal year 
1994. 
"(7) For financial assistance under section 516— 
"(A) for low-rent housing and related facilities for 
domestic farm labor under subsections (a) through (j) of 
such section, $21,700,000 for fiscal year 1993 and 
$22,611,400 for 
fiscal 
vear 1994; and 
"(B) for housing for rural homeless and migrant farm-
workers under subsection (k) of such section, $10,500,000 
for fiscal year 1993 and $10,941,000 for fiscal year 1994. 
"(8) For grants under section 523(f), $13,900,000 for fiscal 
year 1993 and $14,483,800 for 
fiscal 
year 1994. 
"(9) For grants imder section 533, $30,800,000 for fiscal 
year 1993 and $32,093,600 for 
fiscal 
year 1994.". 
(c) 
RENTAL 
ASSISTANCE 
PAYMENT 
CONTRACTS.—Section 
513(cXl) of the Housing Act of 1949 (42 U.S.C. 1483(cXl)) is 
amended to read as follows: 
"(c) RENTAL ASSISTANCE.—<1) The Secretary, to the extent 
approved in appropriations Acts for fiscal years 1993 and 1994, 
may enter into rental assistance pa3rment contracts imder section 
521(aX2XA) aggregating $414,100,000 for fiscal year 1993 and 
$431,492,200 for 
fiscal 
year 1994.". 
(d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT CONTRACTS.— 
Section 513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) 
is amended to read as follows: 
"(d) SUPPLEMENTAL RENTAL ASSISTANCE CONTRACTS.—The Sec-
retary, to the extent approved in appropriations Acts for fiscal 
years 1993 and 1994, may enter into 5-year supplemental rental 
assistance 
contracts under section 502(cX5XJD) aggregating 
106 STAT. 3834 
PUBLIC LAW 102-550—OCT. 28, 1992 
$12,178,000 for fiscal year 1993 and $12,689,476 for fiscal year 
1994.". 
(e) RENTAL HOUSING LOAN AUTHORITY.—Section 515(bX4) of 
the Housing Act of 1949 (42 U.S.C. 1485(bX4)) is amended by 
striking "September 30, 1992" and inserting "September 30, 1994 . 
(f) RURAL HOUSING VOUCHER PROGRAM.—Section 513(e) of the 
Housing Act of 1949 (42 U.S.C. 1483(e)) is amended to read as 
follows: 
"(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for rural housing vouchers under section 542, 
$130,000,000 for fiscal year 1993 and $140,000,000 for fiscal year 
1994.". 
(g) DEFERRED MORTGAGE DEMONSTRATION.—Section 502(gX3) 
of the Housing Act of 1949 (42 U.S.C. 1472(gX3)) is amended 
by striking "1991 and 1992" and inserting "1993 and 1994". 
SEC. 702. ELIOmiLnY OF HOMES ON LEASED LAND OWNED BY 
COMMUNITY LAND TRUSTS FOR SECTION 602 LOANS. 
(a) EUGIBILITY.—Section 502(a) of the Housing Act of 1949 
(42 U.S.C. 1472(a)) is amended by adding at the end the following 
new paragraph: 
"(3XA) Notwithstanding any other provision of this title, a 
loan may be made under this section for the purchase of a dwelling 
located on land owned by a community land trust, if the borrower 
and the loan otherwise meet the requirements applicable to loans 
under this section. 
"(B) For purposes of this paragraph, the term 'community land 
trust' means a community housing development organization as 
such term is defined in section 104 of the Cranston-Gronzalez 
National Affordable Housing Act (except that the requirements 
under section 104(6XC) and section 104(6XD) shall not apply for 
purposes of this paragraph)— 
"(i) that is not sponsored by a for-profit organization; 
"(ii) that is established to carry out the activities under 
clause (iii); 
"(iii)that— 
"(I) acquires parcels of land, held in perpetuity, pri-
marily for conveyance under long-term ground leases; 
"(II) transfers ownership of any structural improve-
ments located on such leased parcels to the lessees; and 
"(III) retains a preemptive option to purchase any such 
structural improvement at a price determined by formula 
that is designed to ensure that the improvement remains 
affordable to low- and moderate-income families in perpetu-
ity; and 
"(iv) that has ite corporate membership open to any adult 
resident of a particular geographic area specified in the bylaws 
of tlie Organization.". 
(b) RECAPTURE.—Section 521(aXlXD) of the Housing Act of 
1949 (42 U.S.C. 1490a(aXlXD)) is amended— 
(1) by inserting "(i)" afl^r "(D)"; and 
(2) by adding at the end the following new clause: 
"(ii) In determimng the amount recaptured under this subpara-
graph with respect to any loan made pursuant to section 502(aX3) 
for the purchase of a dwelling located on land owned by a commu-
nity land trust, the Secretory shall determine any appreciation 
of the dwelling based on any agreement between the borrower 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3835 
and the community land trust that limits the sale price or apprecia-
tion of the dwelling.". 
SEC. 703. MAXIMUM INCOME OF BORROWERS UNDER GUARANTEED 
LOANS. 
Section 502(hX2) of the Housing Act of 1949 (42 U.S.C. 
1472(hX2)) is amended by inserting **115 percent oP after "exceed". 
SEC. 704. REMOTE RURAL AREAS. 
Section 502(0 of the Housing Act of 1949 (42 U.S.C. 1472(f)) 
is amended— 
(1) in paragraph (1), by inserting "or on tribal allotted 
or Indian trust land" after "area"; and 
(2) in paragraph (2), by inserting "or on tribal allotted 
or Indian trust land" before the period. 
SEC. 706. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION 
OF ASSISTANCE. 
(a) REAUTHORIZATION OF DESIGNATION.—Section 509(0 of the 
Housing Act of 1949 (42 U.S.C. 1479(0) is amended— 
(1) in paragraph (1), by striking "in each of fiscal years 
1991 and 1992" ana inserting "in each fiscal year"; 
(2) in paragraph (2), by inserting at the end the following 
new flush sentence: 
"In designating underserved areas under paragraph (1), in each 
fiscal year the Secretary shall designate not less than 5 counties 
or communities that contain tribal allotted or Indian trust 
land."; and 
(3) in paragraph (4), by striking "an amount equal to 3.5 
percent in fiscal year 1991 and 5.0 percent in fiscal year 1992" 
and inserting "an amoiuit equal to 5.0 percent in fiscal years 
1993 and 1994". 
(b) DEFINITION OF COLONIAS.—Section 509(0(8) of the Housing 
Act of 1949 (42 U.S.C. 1479(0(8)) is amended— 
(1) by strikin|r subparagraph (C); 
(2) by redesignating subparagraph (D) as subparagraph 
(C); and 
(3) by striking subparagraph (E) and inserting the following 
new subparagraph: 
"(D) was in existence as a colonia before the date 
of the enactment of the Cranston-Cjonzalez National Afford-
able Housing Act.". 
(c) COLONIAS REFINEMENTS.—Section 509(fX4XBXii) of the 
Housing Act of 1949 (42 U.S.C. 1479(0(4XBXii)) is amended by 
inserting before "a colonia", the following ", or in close proximity 
to, and serving the residents of,". 
SEC. 
706. 
RURAL 
HOUSING 
VOUCHER 
PROGRAM. 
Title V of the Housing Act of 1949 (42 U.S.C. 501 et seq.) 
is amended— 
(1) in the last sentence of section 533(a) (42 U.S.C. 
1490m(a)), by inserting after "1937" the following: "or section 
542 ofthis title"; and 
(2) by adding at the end the following new section: 
•^EC. 542. RURAL HOUSING VOUCHER PROGRAM. 
42 USC 1490r. 
"(a) IN GENERAL.—^To such extent or in such amoimts as are 
approved in appropriation Acts, the Secretary shall carry out a 
106 STAT. 3836 
PUBLIC LAW 102-550—OCT. 28, 1992 
rural housing voucher program to assist very low-income families 
and persons to reside m rental housing in rural areas. For such 
purposes, the Secretary may provide assistance using a payment 
standard based on the fair market rental rate established by the 
Secretary for the area. The monthly assistance pajrment for any 
family snail be the amount by which the payment standard for 
the area exceeds 30 per centum of the familys monthly adjusted 
income, except that such monthly assistance payment shall not 
exceed the amount which the rent for the dwelling imit (including 
the amount allowed for utilities in the case of a unit with separate 
utility metering) exceeds 10 per centum of the familjr's monthly 
gross income. 
"(b) COORDINATION AND LIMITATION.—In carrying out the rural 
housing voucher program imder this section, the Secretary shall— 
"(1) coordinate activities under this section with activities 
assisted under sections 515 and 533 of this title; and 
"(2) enter into contracts for assistance for not more than 
5000 units in any fiscal year.". 
SEC. 707. RENTAL HOUSING LOANS. 
(a) DEVELOPMENT COSTS.—Section 515(eX4) of the Housing Act 
of 1949 (42 U.S.C. 1485(eX4)) is amended— 
(1) by striking "and" before "initial"; 
(2) by inserting before the first period the following: ", 
impact fees, local charges for installation, provision, or use 
of infrastructure, and local assessments for public improve-
ments and services imposed by State and local governments"; 
and 
(3) by inserting after the period at the end the following 
new sentence: "Notwithstanding the first sentence of this para-
graph, the term 'development cost' shall not include any initial 
operating expenses in the case of any nonprofit corporation 
or consumer cooperative that is financing housing under this 
section and has been allocated a low-income housing tax credit 
by a housing credit agency pursuant to section 42 of the 
Internal Revenue Code of 1986.". 
(b) COORDINATION OF LOANS AND RENTAL ASSISTANCE PAY-
MENTS.—Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) 
is amended— 
(1) in subsection (1), by striking paragraph (1) and inserting 
the following new paragraph: 
"(1) in the case of any applicant who applies for rental 
assistance payments under section 521 in connection with such 
project, the Secretary shall consider the availability of such 
rental assistance payments with respect to the project and 
shall require such applicant to demonstrate that a market 
exists for persons and families eligible for such rental assistance 
payments; and"; and 
(2) in subsection (p)— 
(1) in paragraph (4), by striking ", except" in the first 
sentence and all that follows through the end of the para-
graph and inserting a period; and 
(2) by inserting at the end the following new 
paragraph: 
"(5) The Secretary shall coordinate the processing of any 
application for a loan under this section for a project and the 
processing of any application for assistance under section 521(aX2) 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3837 
with respect to housing units in the same project in an economical 
and efficient manner. At the time the Secretary enters into a 
commitment to make or insure a loan under tiiis section the Sec-
retary shall obligate amoimts for assistance pajrments under section 
521(aX2) for the project, to the extent that such amounts are 
available and the Secretary determines such assistance is necessary 
for the market feasibility of the prmect.". 
(c) EQUITY CONTRIBUTION.—Section 515(rX2) of the Housing 
Act of 1949 (42 U.S.C. 1485(rX2)) is amended bv inserting before 
the period at the end the following: ", except that the Secretary 
shall reauire a 5 percent contribution in the case of a project 
that is allocated a low-income housing tax credit pursuant to section 
42 of the Internal Revenue Code of 1986". 
(d) UNIFORM PROJECT COSTS AND COORDINATION OF HOUSING 
RESOURCES AND TAX BENEFITS.—Section 515 of the Housing Act 
of 1949 (42 U.S.C. 1485) is amended by adding at the end the 
following new subsection: 
"(x) UNIFORM PROJECT COSTS; COORDINATION OF HOUSING 
RESOURCES AND TAX BENEFITS.—^The Secretary shall— 
"(1) establish standard guidelines for State offices that 
describe allowable development costs which are required for 
development of all projectis imder this section, without regard 
to whether the project was allocated a low-income housing 
tax credit; 
"(2) require each State to establish a process for coordinat-
ing the selection of projects under this section with the housing 
needs and priorities as established in a State comprehensive 
housing affordability strategy under section 105 of the Cran-
ston-Gonzalez National Affordable Housing Act and a low-
income housing tax credit allocation plan under section 42 
of the Internal Revenue Code of 1986; and 
"(3) develop, in consultation with housing credit agencies 
(as that term is defined under section 42 of the Internal Reve-
nue Code of 1986), uniform procedures for identifying and shar-
ing information on project costs, builder profit, identity of 
interests relationships, and other factors, as appropriate, with 
the relevant housing credit agency for projects that are allocated 
a low-income housing tax credit pursuant to section 42(h) of 
the Internal Revenue Code of 1986 for the purpose of achieving 
compliance with section 102(d) of the Department of Housing 
and Urban Development Reform Act of 1989 (42 U.S.C. 
3546(d)).''. 
(e) GRANTS FOR COSTS OF PROVIDING SERVICE COORDINATORS.— 
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485), as amended 
by this section, is further amended by adding at the end the 
following new subsection: 
"(y) SERVICE COORDINATORS.— 
"(1) GRANTS.—^The Secretary may make grants imder this 
subsection, with respect to any project that the Secretary deter-
mines has a suffiaent number of frail elderly residents, for 
the cost of employing or otherwise retaining the services of 
one or more individuals to coordinate services provided to frail 
elderly residents of the project (in this subsection referred 
to as a 'service coordinator'), who shall be responsible for— 
"(A) assessing the supportive service needs of frail 
elderly residents of the project, based on objective criteria 
and interviews with such residents; 
106 STAT. 3838 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(B) working with service providers to design the provi-
sion of services to meet the needs of frail elderly residents 
of the project, taking into consideration the needs and 
desires of such residents and their ability and willingness 
to pay for such services, as expressed Dy the residents; 
"(C) mobilizing public and private resources to obtain 
funding for such services for such residents; 
"(D) monitoring and evaluating the impact and 
effectiveness of any supportive services provided for such 
residents; 
"(E) consulting and coordinating with any appropriate 
public and private agencies regarding the provision of 
supportive services; and 
"(F) performing such other duties that the Secretary 
deems appropriate to enable frail elderly persons residing 
in federally assisted housing to live with dignity and 
independence. 
"(2) QUALIFICATIONS.—Individuals employed as service 
coordinators pursuant to this subsection shall meet the mini-
.. 
mum qualifications and standards established under section 
802(dX4) of the Cranston-Gonzalez National Affordable Housing 
Act for service coordinators under a congregate housing services 
program. 
"(3) APPLICATION AND SELECTION.—The Secretary shall pro-
vide for the form and manner of applications for grants under 
this subsection and for the selection of applicants to receive 
the grants. 
"(4) DEFINITION OF FRAIL ELDERLY.—For purposes of this 
subsection, the term 'frail elderl/ has the meaning given the 
term in section 802(k) of the Cranston-Gonzalez National 
Affordable Housing Act.". 
(f) 
PROHIBITIONS REGARDING CONSIDERATIONS IN MAKING 
^ 
LOANS.— 
(1) IN GENERAL.—Section 515 of the Housing Act of 
1949 
(42 U.S.C. 1485), as amended by this section, is further 
amended by adding at the end the following new subsection: 
"(z) PROHIBITIONS.— 
"(1) REMOTE RURAL AREAS.—The Secretary may not refuse 
to make a loan that otherwise complies with the requirements 
under this section solely because the housing and related facili-
ties involved are located in an area that is excessively rural 
in character or excessively remote. 
"(2) ESSENTIAL SERVICES.—In making loans imder this sec-
tion, the Secretary may not provide any preference for any 
project based on the availability of any particular essential 
service. For purposes of this paragraph, an essential service 
shall include post offices (and postal services), grocery stores, 
pharmacies, schools, and health service facilities (and health 
services). 
"(3) GEOGRAPHIC LOCATION.—In making loans imder this 
section, the Secretary may not grant or deny approval based 
^ 
on the geographic location of the proposed project if the project 
is located in a rural area, as such term is defined in section 
520, except that the Secretary shall give preference to any 
application for a project that will serve the needs of a rural 
community located 20 or more miles from an urban area.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3839 
(2) REGULATIONS.—The Secretary of Agriculture shall issue 42 use 1485 
any regulations necessary to carry out the amendment made 
by paragraph (1) not later than me expiration of the 45-day 
period l^ginning on the date of the enactment of this Act. 
Not later than the expiration of the 30-day period beginning 
on the date of the enactment of this Act, the Secreta^ shall 
submit a copy of any regulations to be issued under this sub-
section to tne Congress. Tlie reauirements of section 534(d) 
of the Housing Act of 1949 and subsections (b) and (c) of 
section 553 of title 5, United States Code, shall apply to any 
such regulations. 
(g) INDEPENDENT COST CERTIFICATIONS.—Section 517(jX3) of 
the Housine Act of 1949 (42 U.S.C. 1487(jX3)) is amended by 
inserting after 'industry," the following: 'independent audits of 
project expenses,". 
SEC. 708. NONPROFIT SET-ASIDE. 
(a) IN GENERAL.—Section 515(w) of the Housing Act of 1949 
(42 U.S.C. 1485(w)) is amended— 
(1) in paragraph (1), by striking "not less than 7 percent 
of the amounts available in fiscal year 1991 and not less than 
9 percent of the amoimts available in fiscal year 1992" and 
inserting "not less than 9 percent of the amounts available 
in fiscal years 1993 and 1994*; 
(2) in p£u:agraph (1), in the second sentence b^ striking 
"or imder whole or partial control with a for-profit entity^ 
(3) in paragraph (1), by adding at the end the following 
new sentence: '
^
A
. partnership, that has as its general partner 
a nonprofit entity or the nonprofit entitjr's for-profit subsidiary, 
is eligible to receive fiinds set aside under this subsection 
to sponsor a project which is receiving low-income housing 
tax credits authorized imder section 42 of the Internal Revenue 
Code of 1986. For the purposes of this subsection, a nonprofit 
entity is an organization that— 
"(A) will own an interest in a project to be financed 
under this section and will materially participate in the 
development and the operation of the project; 
"(B) is a private organization that has nonprofit, tax 
exempt status imder section 501(cX3) or section 501(cX4) 
of the Internal Revenue Code of 1986; 
"(C) has among its purposes the planning, develop-
ment, or management of low-mcome housing or conmiunity 
devel(MQment projects; and 
"(D) is not affiliated with or controlled by a for-profit 
organization."; 
(4) in paragraph (2), by adding at the end the following: 
"The Secretary may provide amounts available for re^dlocation 
under this subsection in excess of $750,000 in a given State, 
if such amounts are necessary to finance a project under this 
section."; and 
(5) by striking paragraph (3) and inserting the following: 
"(3) UNUSED AMOUNTS.— 
"(A) EQUITABLE DISTRIBUTION.—Any amounts set aside 
under this subsection firom the allocation for any State 
that are not obligated by 9 months after the allocation, 
shall first be pooled and made available to any other 
eligible nonprofit entity in any State as defined in this 
note. 
106 STAT. 3840 
PUBLIC LAW 102-550—OCT. 28, 1992 
subsection. The Secretary shall make reasonable efforts 
to ensure that pooled funds are distributed under this 
subparagraph in an equitable manner. 
"(B) RETURN TO THE STATES.—After funds have been 
pooled and obligated for 30 days, the Secretary shall return 
any remaining funds to the States on a proportional basis 
for use by any other eligible entity as defined in this 
section.", 
(b) EFFECTIVE DATE.—^The amendment made by subsection 
(aX5) shall take effect on October 1, 1993, and shall apply to 
fiscal year 1994 and each fiscal year thereafter. 
SEC. 
7
0
9
. 
CONSIDERATION 
OF 
CERTAIN 
AREAS 
AS 
RURAL 
AREAS. 
Section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is 
amended by adding at the end the following new sentence: 'Notwith-
standing any other provision of this section, the city of Plainview, 
Texas, shall be considered a rural area for purposes of this title.". 
SEC. 710. PERMANENT AUTHORITY FOR SECTION 523. 
Section 523 of the Housing Act of 1949 (42 U.S.C. 1490c) 
is amended— 
42 use 1485 
note. 
(2) by striking subsection (f). 
SEC. 711. HOUSING PRESERVATION GRANTS FOR REPLACEMENT OF 
HOUSING. 
Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) 
is amended— 
(1) in subsection (a)— 
(A) by inserting "or replace" after "rehabilitate" each 
place it appears; and 
(B) in the second sentence, by inserting "or replaced" 
after "rehabilitated"; 
(2) in subsection (b)— 
(A) by striking "Rehabilitation programs" and inserting 
"Preservation programs"; 
(B) in para^aph (3), by inserting "or replacement" 
after "rehabilitation each place it appears; 
(C) in paragraph (4), by striking "repair and reha-
bilitation" and inserting 
repair, rehabilitation, and 
replacement"; 
(D) by redesignating paragraphs (2) through (6) (as 
amended by this paragraph) as paragraphs (3) through 
(7), respectively; and 
(E) by inserting after paragraph (1) the following new 
paragraph: 
(2) be used to provide loans or grants, not to exceed 
$15,000 per unit, to owners of single family housing to replace 
existing nousing if repair or rehabilitation of the housing is 
determined bv the Secretaiy not to be practicable and the 
owner of the nousing is imable to afford a loan under section 
502 for replacement housing;"; 
(3) in the first sentence of subsection (cXl)> by striking 
"rehabilitation grant funds" and inserting "grant funds under 
this section"; and 
(4) in subsection (d)— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3841 
(A) in paragraph (1), by striking 'Rehabilitation pro-
gram" and inserting "preservation program"; 
(B) in paragraphs (3XA), (3XB), and (3XD), by striking 
"repair and rehabiutation" eadi place it appears and insert-
ing "repair, rehabilitation, and replacement"; 
(C) in paragraph (4), b^ inserting ", or replacement," 
after "repair and renabilitation"; and 
(D) by adding at the end the following new paragraph: 
"(5) A grantee may use housing preservation grant funds under 
this section for replacement housing only aft«r providing docu-
mentation to the Secretary that— 
"(A) the existing housing is in such poor condition that 
rehabilitation is not economically feasible; 
"(B) the owner of the housing lacks the income or repay-
ment ability necessary to qualify for a loan under section 502; 
and 
"(C) the grantee will extend assistance to the owner of 
the housing under terms that the owner can afford.". 
SEC. 712. PRESERVATION. 
(a) APPUCABILITY.—Section 502(c) of the Housing Act of 1949 
(42 U.S.C. 1472(c)) is amended— 
(1) in subparagraph (2), by striking "before December 21, 
1979," and inserting "prior to the date of enactment of the 
Depa^ment of Housing and Urban Development Reform Act 
of 1989"; 
(2) in subparagraph (4XA), by striking "before December 
21, 1979" ana inserting "prior to the date of enactment of 
the Department of Housing and Urban Development Reform 
Act of 1989"; 
(3) in sulmaragraph (5XF), by striking "before December 
21, 1979" and inserting "prior to the date of enactment of 
the Department of Housing and Urban Development Reform 
Act of 1989"; and 
(4) in subparagraph (SXC), by striking "before December 
21, 1979" and inserting "prior to the date of enactment of 
the Department of Housing and Urban Development Reform 
Act of 1989". 
(b) INCENTIVES.—Section 502(cX4XB) of the Housing Act of 
1949 (42 U.S.C. 1472(cX4XB)) is amended by adding the following 
new clause: 
"(vi) In the case of a project that has received 
rental assistance imder section 8 of the United States 
Housing Act of 1937, permitting the owner to receive 
rent in excess of the amount determined necessaiy 
by the Secretary to defray the cost of long-term repair 
or maintenance of such a project.". 
(c) OFFICE OF RURAL HOUSING PRESERVATION.—Title V of the 
Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended by inserting 
after section 536 the following: 
'*8EC, 837. OFFICE OF R
U
R
A
L HOUSING PRESERVATION. 
42 U
S
C 1490p-l. 
"(a) ESTABUSHMENT.—^There is established within the Farmers 
Home Administration an Office of Rental Housing Preservation 
(hereafter in this section referred to as the 'Office'). The Office 
shall be headed by a Director designated by the Secretary of 
Agriculture. 
"(b) PURPOSES.—The purposes of the Office are: 
106 STAT. 3842 
PUBLIC LAW 102-550—OCT. 28, 1992 
Termination 
date. 
42 u s e 1490o. 
42 u s e 1490o 
note. 
"(1) to review and process applications under section 502(c) 
and section 515(t) related to the preservation of rural rental 
housing; 
"(2) to provide technical or financial assistance to any other 
projects needing such assistance; 
"(3) to coordinate and direct all other activities related 
to the preservation of rural housing; and 
"(4) to monitor compliance of projects prepcdd or receiving 
incentives \mder the Housing Act of 1949.". 
SEC. 713. DISASTER ASSISTANCE. 
Section 541(aXl) of the Housing Act of 1949 (42 U.S.C. 
1490q(aXl)) is amended in the first sentence by striking "amounts 
available under this title" and inserting "amounts made available 
to the Secretary by an appropriations Act for such purpose". 
SEC. 714. PROHIBITION ON TRANSFER OF RURAL HOUSING PRO-
GRAMS. 
Section 501 of the Housing Act of 1949 (42 U.S.C. 1471) is 
amended by adding at the end the following new subsection: 
"(j) PROGRAM TRANSFERS.—^Notwithstanding any other provi-
sion of law, the Secretary shall not transfer any program authorized 
by this title to the Rural Development Administration.". 
SEC. 715. SITE ACQUISITION AND DEVELOPMENT. 
Section 524(a) of the Housing Act of 1949 (42 U.S.C. 1490d(a)) 
is amended— 
(1) by inserting "(1) IN GENERAL.—" before The Secretary" 
in the first sentence; and 
(2) by adding at the end the following: 
"(2) REVOLVING FUNDS.—^The Secretary may make grants 
to nonprofit housing agencies to establish revolving loan fiinds 
for the acquisition and preparation of building sites for low-
income housing. Any proceeds and repayments m)m such loans 
shall be returned to the revolving loan fiind to be used for 
purposes related to this section. Loan fiinds and interest pay-
ments shall be used solely for the acquisition of land; the 
preparation of land for building sites; the payment of reimburs-
able legal and technical costs; and technical assistance and 
administrative costs, not to exceed 10 percent of the fimd.". 
SEC. 716. RECIPROCnY IN APPROVAL OF HOUSING SUBDIVISIONS 
AMONG FEDERAL AGENCIES. 
(a) EXTENSION OF AUTHORITY.—Section 535(b) of the Housing 
Act of 1949 (42 U.S.C. 1490o(b)) is amended by striking the last 
sentence and inserting the following new sentence: This subsection 
shall not apply after June 15,1993. . 
(b) RETROACTIVITY.—Any administrative approval of any hous-
ing subdivision made afi«r the expiration of the 18-month period 
beginning on the date of the enactment of the Department of 
Housing and Urban Development Reform Act of 1989 and before 
the date of the enactment of this Act is approved and shall be 
considered to have been lawfiilly made, but only if otherwise made 
in accordance with the provisions of section 535(b) of 
"
^
t
h
e Housing 
Act of 1949. 
(c) APPROVAL BY LOCAL, COUNTY, OR STATE AGENCIES.—Section 
535 of the Housing Act of 1949 (42 U.S.C. 1490o) is amended 
by adding at the end the following new subsection: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3843 
"(d) For loans made under this title, the Secretary may accept 
subdivisions that have been approved by local, county, or State 
agencies.". 
TITLE Vni—COMMUNITY 
DEVELOPMENT 
Subtitle A—Community Development 
Block Grants 
SEC. 801. COMMUNITY DEVELOPMENT AUTHORIZATIONS. 
(a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—Section 103 Appropriation 
of the Housing and Community Development Act of 1974 (42 U.S.C. authorization. 
5303) is amended by striking the second and third sentences and 
inserting the following: "For purposes of assistance under section 
106, there are authorized to be appropriated $4,000,000,000 for 
fiscal year 1993 and $4,168,000,000 for fiscal year 1994. 
(b) LIMITATION ON LOAN GUARANTEES.—The fifth sentence of 
section 108(a) of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5308(a)) is amended to read as follows: "Notwith-
standing any other provision of law and subject only to the absence 
of qualified applicants or proposed activities and to the authority 
provided in this section, to the extent approved or provided in 
appropriation Acts, the Secretary shall enter into commitments 
to guarantee notes and obligations under this section with an aggre-
f
ate principal amount of $2,000,000,000 for fiscal year 1993 and 
2,000,000,000 for fiscal year 1994.". 
(c) SPECIAL PURPOSE GRANTS.— 
(1) SET-ASIDE.—Section 107 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5307) is amended by strik-
ing "SEC. 107. (a)" and all that follows through the end of 
subsection (a) and inserting the following: 
"SEC. 107. (a) SET-ASIDE.— 
"(1) IN GENERAL.—For each fiscal year (except as otherwise 
provided in this paragraph), of the total amount provided in 
appropriation Acts imder section 103 for the fiscal year, 
$60,000,000 shall be set aside for grants under subsection (b) 
for such year for the following purposes: 
"(A) $7,000,000 shall be available for grants under 
subsection (b)(1); 
"(B) $6,500,000 shall be available for grants under 
subsection (bX3); 
"(C) $6,000,000 shall be available for grants under 
subsection (bX5); 
"(D) $6,000,000 shall be available in fiscal year 1993 
for grants under subsection (bX7); 
"(E) $3,000,000 shall be available for grants under 
subsection (c); 
"(F) such sums as may be necessary shall be available 
for grants under paragraphs (2), (4), and (6) of sub-
section (b); 
"(G) $2,000,000 shall be available in fiscal year 1993 
for a grant to the City of Bridgeport, Connecticut, subject 
to the approval of sufficient amounts in an appropriation 
Act and to binding commitments made by the City of 
106 STAT. 3844 
PUBLIC LAW 102-550—OCT. 28, 1992 
Bridgeport and the State of Connecticut that the city and 
State, respectively, will supplement such amount with 
$2,000,000 of additional funds; 
"(H) $15,000,000 shall be available for grants under 
the Removal of Regulatory Barriers to A£fordable Housing 
Act of 1992; and 
"(I) $7,500,000 shall be available to carry out the 
Community Outreach Partnership Act of 1992. 
"(2) TREATMENT OF GRANTS.—Any grants made imder this 
section shall be in addition to any other ^ants that may 
be made under this title to the same entities for the same 
purposes.". 
(2) OTHER PURPOSES.—Section 107(b) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(b)) is 
amended— 
(A) in paragraph (3), by striking "and" at the end; 
(B) in paragraph (4), by striking the period at the 
end and inserting a semicolon; and 
(C) by adding at the end the following: 
"(5) to States and units of general local government and 
* institutions of higher education having a demonstrated capacity 
to carry out eligible activities under this title, except that 
the Secretary ma^ make a grant under tiiis paragraph only 
to a State or unit of general local government that jointly, 
with an institution of higher education, has prepared and 
submitted to the Secretanr an application for such grant, as 
the Secretary shall by regulation require; 
"(6) to units of general local government in nonentitlement 
areas for planning commimity a4justment8 and economic diver-
sification activities, which may include any eligible activities 
under section 105, required— 
"(A) by the proposed or actual establishment, realign-
ment, or closure of a military installation, 
"(B) by the cancellation or termination of a Department 
of Defense contract or the failure to proceed with an 
approved msoor weapon system program, or 
"(C) by a publicly announced planned major reduction 
in Department of Defense spending that would directly 
and adversely affect a unit of general local government 
and will result in the loss of 1,000 or more full-time Depart-
ment of Defense and contractor employee positions over 
a 5-year period in the imit of general local government 
and the surrounding area, or 
if the Secretary (in consultation with the Secretary of Defense) 
determines that an action described in subparagraph (A), (B), 
or (C), is likely to have a direct and significant adverse con-
sequence on the unit of general local government; and 
''(7) for the purposes of rebuilding and revitalizing dis-
tressed areas of the Los Angeles metropolitan area.". 
42 use 5
3
0
7 
(3) REGULATIONS.—Not later than the expiration of the 
60-day period beginning on the date of the enactment of this 
Act, the Secretary of Housing and Urban Development shall 
issue proposed regulations to carry out section 107(bX6) of 
the Housing and Community Development Act of 1974, as 
added by subsection (cX2) of this section. The Secretary shall 
issue final relations to carry out section 107(bX6) not later 
than the expiration of the 120-day period beginning on the 
note. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3845 
date of the enactment of this Act and after notice and oppor-
tunity for public comment pursuant to the provisions of section 
553 of title 5, United States Code (notwithstanding subsections 
(aX2), (bXB), and (dX3) of such section). Such 
finsQ 
regulations 
shall take effect 30 days after issuance. 
(4) CONFORMING AMENDMENT.—Section 107(c) of the Hous-
ing and Conununity Development Act of 1974 (42 U.S.C. 
5307(c)) is amended by striking '
M
» the extent" and all tiiat 
follows up to "grants to institutions" and inserting '^ake". 
(d) GRANT ACTIVITIES.—^The special purpose grant of the City 
of Dubuque, Iowa, under Public Law 102-139 may be used for 
land acquisition, new construction, relocation assistance payments, 
and rehabilitation for housing of low- and moderate-income mmilies. 
SEC. 802. UNITS OF GENERAL LOCAL GOVERNMENT. 
(a) DEFINITION.—Section 102(aXl) of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5302(aXl)) is amended 
by striking recognized by the Secretary and inserting the follow-
ing: "that, except as provided in section 106(dX4), is recognized 
by the Secretary*. 
(b) GRANTS TO NONENTTTLEMENT AREAS.—Section 106(d) of the 
Housing £ind Community Development Act of 1974 (42 U.S.C. 
5306(d)) is amended by inserting after paragraph (3) the following 
new paragraph: 
(4) Any combination of units of general local governments 
may not be required to obtain recognition by the Secretary pursuant 
to section 102(aXl) to be treated as a single unit of general local 
government for purposes of this subsection.". 
SEC. 803. URBAN COUNTIES. 
Section 102(aX6XD) of the Housing and Commimity Develop-
ment Act of 1974 (42 U.S.C. 5302(aX6XD)) is amended— 
(1) in clause (iii), by striking "or" at the end; 
(2) in clause (iv), by striking the period at the end and 
inserting "; or"; and 
(3) by adding at the end the following new clause: 
(vXD has a population of 175,000 or more (including 
the population of metropolitan cities therein), (II) before 
January 1, 1975, was designated by the Secretary of 
Defense pursuant to section 608 of the Military Construc-
tion Authorization Act, 1975 (Public Law 93-552; 88 Stat. 
1763), as a Trident Defense Impact Area, and (III) has 
located therein not less than 1 unit of general local govern-
ment that was classified as a metropolitan city and (a) 
for which coimty each such unit of general local government 
therein has relinquished its classification as a metropolitan 
city imder the 6th sentence of paragraph (4), or (b) that 
has entered into cooperative agreements with each metro-
politan city therein to undertake or to assist in the imder-
taking of essential community development and housing 
assistance activities.". 
SEC. 804. RETENTION OF PROGRAM INCOME. 
The first sentence of section 104(j) of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5304(j)) is amended— 
(1) oy striking "while the unit of general local government 
is participating in a community development program under 
this title"; and 
106 STAT. 3846 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) by inserting before the period at the end the following: 
"; except that the Secretary may, by regulation, exclude from 
consideration as program income any amounts determined to 
be so small that compliance with this subsection creates an 
unreasonable administrative burden on the imit of general 
local government". 
SEC. 805. ECONOMIC DEVELOPMENT. 
(b) Section 105 of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5305) is amended by adding at the end 
the following new subsection: 
"(d) TRAINING PROGRAM.—^The Secretary shall implement, using 
funds recaptured pursuant to section 119(o), an on-going education 
• 
and training program for officers and employees of the Department, 
especially of^cers and employees of area and other field offices 
of the Department, who are responsible for monitoring and admin-
istering activities pursuant to paragraphs (14), (15), and (17) of 
subsection (a) for the purpose of ensuring that (A) such personnel 
possess a thorough understanding of such activities; and (B) regula-
tions and guidelines are implemented in a consistent fashion.". 
SEC. 806. EVALUATION, SELECTION, AND REVIEW OF ECONOMIC 
DEVELOPMENT PROJECTS. 
(a) GUIDELINES.—Section 105 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305), as amended by section 
805, is amended by adding at the end the following new subsection: 
"(e) GUIDELINES FOR EVALUATING AND SELECTING ECONOMIC 
DEVELOPMENT PROJECTS.— 
Regulations. 
"(1) ESTABLISHMENT.—The Secretary shall establish, by 
regulation, guidelines to assist grant recipients under this title 
to evaluate and select activities described in section 105(a) 
(14), (15), and (17) for assistance with grant amounts. The 
Secretary shall not base a determination of eligibility of the 
use of funds under this title for such assistance solely on 
the basis that the recipient fails to achieve one or more of 
the guidelines' objectives as stated in paragraph (2). 
"(2) PROJECT COSTS AND FINANCIAL REQUIREMENTS.—The 
guidelines established under this subsection shall include the 
following objectives: 
"(A) The project costs of such activities are reasonable. 
"(B) To the extent practicable, reasonable financial sup-
port has been committed for such activities from non-Fed-
eral sources prior to disbursement of Federal funds. 
"(C) To the extent practicable, any grant amoimts to 
be provided for such activities do not substantially reduce 
the amount of non-Federal financial support for the 
activity. 
"(D) Such activities are financially feasible. 
"(E) To the extent practicable, such activities provide 
not more than a reasonable return on investment to the 
owner. 
\ 
«^p^ rp^ ^YiQ extent practicable, grant amounts used 
for the costs of such activities are disbursed on a pro 
rata basis with amounts from other sources. 
"(3) PUBLIC BENEFIT.—The guidelines established under 
this subsection shall provide that the public benefit provided 
by the activity is appropriate relative to the amount of assist-
ance provided with grant amounts imder this title.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3847 
42 use 5305 
note. 
(b) ASSISTANCE TO FOR-PROFIT ENTITIES.—Section 105 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5305), 
as amended by subsection (a), is amended by inserting at the 
end the following new subsection: 
"(f) ASSISTANCE TO FOR-PROFIT ENTITIES.—In any case in which 
an activity described in paragraph (17) of subsection (a) is provided 
assistance such assistance shall not be Umited to activities for 
which no other forms of assistance are available or could not be 
accomplished but for that assistance.". 
(c) GAO STUDY.—The Comptroller General of the United States 
shall conduct a study of the use of grant amounts under title 
I of the Housing and Community Development Act of 1974 for 
activities described in paragraphs (14), (15), and (17) of section 
105(a) of such Act. The study snail evaluate whether the activities 
for which such amoimts are being used under such paragraphs 
further the goals and objectives of such program, as established 
in section 101 of such Act. The Comptroller General shall submit Reports 
a report to the Congress regarding the findings of the study not 
later than the expiration of the 18-month period beginning on 
the date of the enactment of this Act. The report shall include 
recommendations o
f
— 
(1) any administrative or legislative actions that may be 
taken to ensure that such grant amounts are properly and 
efficiently used for economic development activities; and 
(2) criteria by which to evaluate the effectiveness of activi-
ties assisted under paragraphs (14), (15), and (17) of such 
section 105(a). 
(d) ENHANCING JOB QUALITY.—Not later than 1 year after 
the date of enactment of this Act, the Comptroller Greneral shall 
submit to the Congress a report on the types and quality of jobs 
created or retained through assistance provided pursuant to title 
I of the Housing and Community Development Act of 1974 and 
the extent to which projects and activities assisted under that 
title enhance the upward mobility and future earning capacitv 
of low- and moderate-income persons who are benefited by sucn 
projects and activities. 
(e) REBUILDING DISTRESSED NEIGHBORHOODS.—Section 105(c) 
of the Housing and Community Development Act of 1974 (42 U.S.C. 
5305(c)) is amended by adding at the end the following new 
paragraph: 
(4) For the purposes of subsection (cXlXC)— 
"(A) if an employee resides in, or the assisted activity 
through which he or she is employed, is located in a census 
tract that meets the Federal enterprise zone eligibility criteria, 
the employee shall be presumed to be a person of low- or 
moderate-income; or 
"(B) if an employee resides in a census tract where not 
less than 70 percent of the residents have incomes at or below 
80 percent of the area median, the employee shall be presimied 
to be a person of low or moderate income. . 
SEC. 807. EUGIBLE ACTIYITIES. 
(a) ADDITIONAL ELIGIBLE ACTIVITIES.—Section 105(a) of the 
Housing and Commimity Development Act of 1974 (42 U.S.C. 
5305(a)) is amended— 
(1) in paragraph (8), by inserting before the semicolon 
at the end the following: ", and except that of any amoimt 
Reports. 
42 use 5305 
note. 
106 STAT. 3848 
PUBLIC LAW 102-550—OCT. 28, 1992 
of assistance under this title (including program income) in 
each of fiscal years 1993 through 1997 to the City of Los 
Angeles and County of Los Angeles, each such imit of general 
government may use not more than 25 percent in each such 
fiscal year for activities under this paragraph"; 
(2) in paragraph (19), by striking "and" at the end; 
(3) by redesignating paragraph (20) as paragraph (25); 
and 
(4) by inserting after paragraph (19) the following new 
paragraphs: 
"(20) provision of technical assistance to public or nonprofit 
entities to increase the capacity of such entities to carry out 
eligible neighborhood revitalization or economic development 
activities, which assistance shall not be considered a planning 
cost as defined in paragraph (12) or administrative cost as 
defined in paragraph (13); 
"(21) housing services, such as housing counseling, energy 
auditing, preparation of work specifications, loan processing, 
inspections, tenant selection, management of tenant-based 
rental assistance, and other services related to assisting owners, 
tenants, contractors, and other entities, participating or seeking 
to participate in housing activities authorized under this sec-
tion, or under title II of the Cranston-Gonzalez National Afford-
able Housing Act, except that activities under this paragraph 
shall be subject to any limitation on administrative expenses 
imposed by any law; 
"(22) provision of assistance by recipients under this title 
to institutions of higher education having a demonstrated 
capacity to carry out eligible activities under this subsection 
for carrying out such activities; 
"(23) provision of assistance to public and private organiza-
tions, agencies, and other entities (including nonprofit and for-
profit entities) to enable such entities to facilitate economic 
~
~
^ 
development by— 
"(A) providing credit (including providing direct loans 
and loan guarantees, establishing revolving loan funds, 
and facilitating peer lending programs) for the establish-
ment, stabilization, and expansion of microenterprises; 
"(B) providing technical assistance, advice, and busi-
ness support services (including assistance, advice, and 
support relating to developing business plans, securing 
funding, conducting marketing, and otherwise engaging in 
microenterprise activities) to owners of microenterprises 
and persons developing microenterprises; and 
"(C) providing general support (such as peer support 
programs and counseling) to owners of microenterprises 
and persons developing microenterprises; 
"(24) activities necessary to make essential repairs and 
to pay operating expenses necessary to maintain the habit-
ability of housing units acquired through tax foreclosure 
proceedings in order to prevent abandonment and deterioration 
of such housing in primarily low- and moderate-income 
neighborhoods; and". 
(b) DIRECT HOMEOWNERSHIP ASSISTANCE.—Section 907(bX2) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
5305 note) is amended— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3849 
(1) by striking "October 1, 1992" and inserting "October 
1,1994"; 
(2) by striking "October 1, 1993" and inserting "October 
1,1995"; and 
(3) by striking "(ISr, "(19)", and '•(20r and inserting "(23)", 
"(24)", and "(25)", respectively. 
(C) MICROENTERPRISE AND SMALL BUSINESS DEVELOPMENT 
INITIATIVE.— 
(1) IN GENERAL.—Section 105 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5305), as amended 
by section 806, is further amended by adding at the end the 
following new subsection: 
"(g) 
MiCROENTERPRISE 
AND SMALL 
BUSINESS 
PROGRAM 
REQUIREMENTS.—In developing program requirements and provid-
ing assistance pursuant to paragraph (17) of subsection (a) to a 
microenterprise or small business, the Secretary shall— 
"(1) take into account the special needs and Umitations 
arising from the size of the entity; and 
"(2) not consider training, technical assistance, or other 
support services costs provided to small businesses or 
microenterprises or to grantees and subgrantees to develop 
the capacity to pro\ide such assistance, as a planning cost 
pursuant to section 105(aX12) or £ui administrative cost pursu-
ant to section 105(aX13).". 
(2) DEFINITIONS.—Section 102(a) of the Housing and 
Commimity Development Act of 1974 (42 U.S.C. 5302(a)) is 
amended bv adding at the end the following new paragraphs: 
"(22) Ine term 'microenterprise' means a commercial enter-
prise that has 5 or fewer employees, 1 or more of whom owns 
the enterprise. 
"(23) The term 'small business' means a business that 
meets the criteria set forth in section 3(a) of the Small Business 
Act.". 
(3) SENSE OF THE CONGRESS.—It is the sense of the Con-
gress that each grantee under title I of the Housing and 
Community Development Act of 1974 should reserve 1 percent 
of any grant amounU the grantee receives in each fiscal year 
for the purpose of providing assistance under section 105(aX23) 
of such Act to facilitate economic development through commer-
ci&l ixiiciroGii^GirDrisGS 
(4) REPORT.—Not later than 18 months after the date of 42 use 5305 
enactment of this Act, the Secretary shall submit to the Con- "
'
'
^
^
-
gress a report on the effectiveness of assistance provided 
through title I of the Housing and Community Development 
Act of 1974 in promoting development of microenterprises, 
including a review of any statutory or regulatory provision 
that impedes the development of microenterprises. 
(d) LOANS OF CDBG FUNDS.—Section 105(aX14) of the Housing 
and Commimity Development Act of 1974 (42 U.S.C. 5305(aX14)) 
is amended by inserting before "activities" the following: "provision 
of assistance including loans (both interim and long-term) and 
grants for". 
(e) CDBG CODE ENFORCEMENT.—Section 105(aX3) of the Hous-
ing and Community Development Act of 1974 is amended by strik-
ing "improvements and" and inserting "or private improvements 
106 STAT. 3850 
PUBLIC LAW 102-550—OCT. 28, 1992 
(f) NEIGHBORHOOD-BASED NONPROFIT ORGANIZATIONS.—Section 
105(aX15) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(aX15)) is amended by inserting after "corpora-
tions," the following: "nonprofit organizations serving the develop-
ment needs of the commimities in nonentitlement areas,". 
SEC. 808. REFERENCE TO FAIR HOUSING ACT. 
Sections 104(bX2), 106(dX5XB), and 107(eXl) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5304(bX2), 
5306(dX5XB), and 5307(eXl)) are each amended by striking "Public 
Law 88-352 and Public Law 90-284" and inserting "the Civil Rights 
Act of 1964 and the Fair Housing Act". 
SEC. 809. ELIGIBILITY OF ENTERPRISE ZONES. 
Section 105(aX13) of the Housing and Community Development 
Act of 1974 is amended by inserting immediately after "(13)" the 
following: "payment of reasonable administrative costs related to 
establishing and administering federally approved enterprise zones 
and". 
SEC. 810. ASSISTANCE FOR COLONIAS. 
(a) ELIGIBLE ACTIVITIES.—Section 916 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 5306 note) is amended— 
(1) by adding at uie end of subsection (b) the following 
new paragraph: 
"(3) OTHER IMPROVEMENTS.—Other activities eligible under 
section 105 of the Housing and Community Development Act 
of 1974 designed to meet the needs of residents of colonias."; 
and 
(2) in subsection (f), by striking "and 1993" and inserting 
"1993, and 1994". 
(b) DEFINITION OF COLONIA.—Section 916(eXl) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 5306 note) 
is amended— 
(1) by striking subparagraph (C); 
(2) by redesignating subparagraph (D) as subparagraph 
(C); and 
(3) by striking subparagraph (E) and inserting the following 
new subparagraph: 
"(D) was in existence as a colonia before the date 
of the enactment of the Cranston-Gonzalez National 
Affordable Housing Act.". 
SEC. 81L STATE SET-ASIDE FOR TECHNICAL ASSISTANCE. 
Section 106(d) of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5306(d)) is amended by inserting after 
paragraph (4), as added by section 802, the following: 
"(5) From the amounts received under paragraph (1) for dis-
tribution in nonentitlement areas, the State may deduct an amount, 
not to exceed 1 percent of the amount so received, to provide 
' 
technical assistance to local governments and nonprofit program 
recipients.". 
SEC. 812. COMMUNITY DEVELOPMENT PLANS AND REPORTS. 
(a) IN GENERAL,—Subsection (1) of section 104 of the Housing 
and Community Development Act of 1974, as added by section 
922 of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 5304(1)), is amended to read as follows: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3851 
"(m) COMMUNITY DEVBLOPMENT PLANS.— 
"(1) IN GENERAL.—^Prior to the receipt in any fiscal year Regulations. 
of a grant 
fi:t>m 
the Secretary under subsection (b), (aXl)> 
or (d)(2XB) of section 106, eacn recii>ient shall have prepared 
and submitted in accordance with tms subsection ana in such 
standardized form as the Secretary shall, by regulation, pre-
scribe a description of its priority nonhousing community devel-
opment needs eligible for assistance under this title. 
"(2) LOCAL GOVERNMENTS.—^In the case of a recipient that 
is a unit of general local government— 
"(A) prior to the submission required by paragraph 
(1), the recipient shall, to the extent practicable, notify 
ac^acent units of general local government and soUcit the 
views of citizens on priority nomiousing community devel-
opment needs; and 
"(B) the description required under paragraph (1) shall Regulations. 
be submitted to the Secretary, the State, and any other 
unit of general local government within wluch the recipient 
is located, in such standardized form as the Secretary 
shall, by regulation, prescribe. 
"(3) STATES.—^In the case of a recipient that is a State, 
the description required by paragraph (1)— 
"(A) shall include only &e needs within the Stete that 
affect more than one unit of general local government 
and involve activiities typically funded by such Stetes under 
this title; and 
"(B) shall be submitted to the Secretary in such stand- Regulations. 
ard form as the Secretary, by regulation, shall prescribe. 
"(4) EFFECT OF SUBMISSION.—A siibmission under this sub-
section shall not be binding with respect to the use or distribu-
tion of amounts received under section 106.". 
(b) CONFORMING AMENDMENTS.—Section 104(bX4) of the Hous-
ing and Community Development Act of 1974 (42 U.S.C. 5304(bX4)) 
is amended— 
(1) by inserting "pursuant to subsection (m)" before the 
first comma; and 
(2) by striking "and housing". 
SEC. 
813. 
DELAY 
USE 
OF 1
9
9
0 
CENSUS 
HOUSING 
DATA 
TO EXAMINE 
EFFECT 
ON 
TARGETING 
FOR 
CDBG 
FORMULA. 
Notwithstanding any other provision of law, for fiscal year 
1993, no date derived from the 1990 Decennial Census, except 
those relating to population and poverty, shall be taken into account 
for purposes of the allocation of amounte under section 106 of 
the Housing and Community Development Act of 1974. 
Subtitle B—Other Community 
Development Programs 
SEC. 831. NEIGHBORHOOD REINVESTMENT CORPORATION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—The first sentence of 
section 608(aXl) of Uie Neighborhood Reinvestment Corporation 
Act (42 U.S.C. 8107(a)) is amended to read as follows: There 
are authorized to be appropriated to the corporation to carry out 
this title $29,476,000 for 
fiscal 
year 1993 and $30,713,992 for fiscal 
year 1994.". 
106 STAT. 3852 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 u s e 5318a. 
Appropriation 
authorization. 
42 u s e 5318a. 
Reports. 
John Heinz 
Neighborhood 
Development 
Act. 
42 u s e 5318a. 
(b) EXPANDED PROGRAMS.—^The matter preceding subp£u*agraph 
(A) of section 608(aX2) of the Neighborhood Reinvestment Corpora-
tion Act (42 U.S.C. 8107(aX2)) is amended by striking "each of 
the fiscal years 1991 and 1992" and inserting "any fiscal year". 
SEC. 
832. 
NEIGHBORHOOD 
DEVELOPMENT 
PROGRAM. 
(a) AUTHORIZATION.—Section 123(g) of the Housing and Urban-
Rural Recovery Act of 1983 (42 U.S.C. 5318 note) is amended 
to read as follows: 
"(g) AUTHORIZATION.—Of the amounts made available for assist-
ance imder section 103 of the Housing and Community Development 
Act of 1974, $1,000,000 for fiscal year 1993 (in addition to other 
amounts provided for such fiscal year) and $3,000,000 for fiscal 
year 1994 shall be available to cany out this section.". 
(b) PERMANENT PROGRAM.—^tion 123 of the Housing and 
Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318 note) is 
amended— 
(1) by striking the section heading and inserting the follow-
ing new heading: 
"JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM"; 
(2) by striking "demonstration program" each place it 
appears and inserting "program"; 
(3) in subsection (bXD, by striking "determine the feasibil-
ity of supporting" and inserting "suppjort"; 
(4) in subsection (eX3), by inserting afl^r "year" the follow-
ing: ", except that, if appropriations for this section exceed 
$3,000,000, the Secretary may pay not more than $75,000 to 
any participating neighborhood development organization"; 
(5) in subsection TeX6)— 
(A) in subparagraph (C), by inserting "and" after the 
semicolon at the end; 
(B) by striking subparagraph (D); 
(C) by redesignating subparagraph (E) as subpara-
* 
graph (D); and 
(D) in subparagraph (D), as so redesignated, by striking 
"demonstration" and inserting "program"; 
(6) by striking subsection (i; and inserting the following 
new subsection: 
"(f) The Secretary shall submit a report to the Congress, not 
later than 3 months after the end of each fiscal year in which 
payments are made under this section, regarding the program under 
this section. The report shall contain a summary of the activities 
carried out under this section during such fiscal year and any 
findings, conclusions, and recommendations for legislation regarding 
the program."; and 
(7) by adding at the end the following new subsection: 
"(h) SHORT TITLE.—^This section may be cited as the 'John 
Heinz Neighborhood Development Act'.". 
(c) COMPLIANCE WITH CHAS AND COMMUNITY DEVELOPMENT 
PLANS.—Section 123(eX5XA) of the Housing and Urban-Rural 
Recovery Act of 1983 (42 U.S.C. 5318 note) is amended by striking 
"housing and community development plans of such unit" and 
inserting "comprehensive housing affordability strategy of such unit 
approved under section 105 of the Cranston-Gronzalez National 
Affordable Housing Act or the statement of community development 
activities and community development plans of the unit submitted 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3853 
under section 104(m) of the Housing and Community Development 
Act of 1974". 
(d) EuGiBLE NEIGHBORHOOD DEVELOPMENT ORGANIZATION.— 
Section 123(aX2) of the Housing and Urban-Rural Recovery Act 
of 1983 (42 U.S.C. 5318 note) is amended— 
42 use 53i8a. 
(1) in subparagraph (A), by inserting "(i)" after "(A)"; 
(2) in siibparagraph (E), by stri^ng the period at the 
end and inserting "; or"; 
(3) by redesignating subparagraphs (B) through (E) as 
clauses (ii) through (v), respectively; and 
(4) l^ adding at the end the following new subparagraph: 
(B) any facilitv that provides small entrepreneurial 
business with afibroable shared support services and busi-
ness development services and meets the requirements of 
subparcigraph (A).". 
(e) DEFlNmoNS.—Section 123(a) of the Housing and Urban-
Rural Recovery Act of 1983 (42 U.S.C. 5318 note) is amended— 42 use 53i8a. 
(1) by striking subparagraph (2XAXiv) (as so redesignated 
by subsection (d) of this section) and inserting the following 
new clause: 
"(iv) an organization that operates within an area 
that^ 
"(I) meets the requirements for Federal assistance 
under section 119 of the Housing and Community 
Development Act of 1974; 
"(II) is designated as an enterprise zone under 
Federal law; 
"(III) is designated as an enterprise zone under 
State law and recognized by the Secretary for purposes 
of this section as a State enterprise zone; or 
"(IV) is a qualified distressed community within 
the meaning of section 233(bXl) of the Bank Enterprise 
Act of 1991; and"; 
(2) by redesignating paragraph (3) as paragraph (4); and 
(3) by inserting before paragraph (4) (as so redesignated) 
the following new paragraph: 
"(3) The term 'neighborhood development funding organiza-
tion' means— 
"(A) a depository institution the accounts of which are 
insured pursuant to the Federal Deposit Insurance Act 
or the Federal Credit Union Act, ana any subsid^a!^:ia8 
^
^
^ 
such term is defined in section 3(w) of the Federal D^po^t 
Insurance Act) thereof; 
"(B) a depository institution holding company and any 
subsidiarv thereof (as such term is defined in section 3(w) 
of the Federal Deposit Insurance Act); or 
"(C) a company at least 75 percent of the common 
stock of which is owned by one or more insured depositonr 
institutions or depository institution holding companies. . 
(f) COORDINATION WITH COMMUNITY DEVELOPMENT FUNDING 
ORGANIZATIONS.—Section 123 of the Housing and Urban-Rural 
Recovery Act of 1983 (42 U.S.C. 5318 note) is amended— 
42 use 53i8a. 
(1) in subsection (bXD, by inserting ", and from neighbor-
hood development fiinding organizations," after "neighbor-
hoods"; 
(2) in subsection (bX3)— 
(A) in subparagraph (B), by striking "and" at the end; 
106 STAT. 3854 
PUBLIC LAW 102-550—OCT. 28, 1992 
(B) in subpara^aph (C), by striking the period and 
inserting the loUowing: ", especially in cooperation with 
a neighborhood development ninding organization, except 
that an eligible neighborhood devdopment organization 
shall be deemed to have the full benefit of the cooperation 
of a neighborhood development funding organization if the 
eligible neighborhood development organization— 
"(i) is located in an area described in subsection 
(aX2XAXiv) that does not contain a neighborhood develop-
ment funding organization; or 
"(ii) demonstrates to the satisfaction of the Secretary 
that it has been unable to obtain the cooperation of any 
neighborhood development funding organization in sum 
area despite having made a good faith effort to o b t ^ 
such cooperation; and"; and 
(C) by adding at the end the following new subpara-
graph: 
"(D) specify a strategy for increasing the capacity of the 
orgtmization."; 
(3) in subsection (cX3), by inserting before the semicolon 
the foUowing: "and by the extent of participation in the proposed 
activities by a neighborhood development funding organization 
that has a branch or office in the neighborhood, except tibat 
an eligible neighborhood development organization shall be 
deemed to have the full benent of the participation of a 
neighborhood development funding organization if^the eligible 
neighborhood development organization— 
"(A) is located in an neighborhood that does not contain 
a branch or ofiKce of a nei^borhood development fimding 
organization; or 
"(B) demonstrates to the satisfaction of the Secretary 
that it has been imable to obtain the participation of any 
neighborhood development funding organization that has 
a branch or office in the neighborhood despite having made 
a good faith effort to obtain such participation"; and 
(4) in subsection (eXD, by inserting ", and from neighbor-
hood development funding organizations," after 'Neighborhood", 
(g) ADMINISTRATIVE CHANGES.—Section 123 of the Housing and 
42 use 5318a. 
Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318 note) is 
amended— 
(1) in subsection (aX2XAXiii), as so redesignated by sub-
section (d) of this section, by striking'ihree years" and inserting 
"one year"; and 
(2) in subsection (bX2), by striking "Not more than 30 
per centum" and inserting 'Tor fiscal year 1993 and thereafter, 
not more than 50 percent. 
SEC. 833. STUDY REGARDING HOUSING TECHNOLOGY RESEABiCH. 
(a) STUDY.—The Secretary of Housingand Urban Development, 
through the Assistant Secretary for Policy Development and 
Research, shall conduct a study o
f
— 
(1) the extent of Federal, other public, and private basic 
research in the United States in housing technologv, including 
design and construction techniques and methoddiogy, smart 
building technology, area and neighborhood planning, and other 
areas relating to the preservation and production of affordable 
housing and 
fivable 
communities; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3855 
(2) the extent of competitiveness of the United States in 
the field of basic housing technology research in comparison 
with other countries that are substantially involved in trade 
with the United States, taking into consideration the balance 
of trade, the degree of government support of private research 
activities, and the degree of fragmentation of research; and 
(3) the types of research projects regarding basic housing 
technology conducted by such other countries, the results of 
such research, and the extent of success in applying and 
marketing such results. 
(b) REPORT.—^The Secretary of Housing and Urban Development 
shall submit a report to the Congress describing the results of 
the study conducted under this section not later than September 
30,1993. 
SEC. 834. DESIGNATION OF ENTERPRISE ZONES. 
(a) IN GENERAL.—Section 701 of the Housing and Commimity 
Development Act of 1987 (42 U.S.C. 11501) is amended— 
(1) in subsection (aX4XB), by striking "the effective date 
of the regulations described in subparagraph (A) occurs" and 
inserting "the date of the enactment of the Housing and 
Commimity Development Act of 1992 occurs"; and 
(2) in subsection (cX3XB), by striking "this Act" and insert-
ing "the Housing and Community Development Act of 1992". 
(b) REPORT.—Section 702 of the Housing and Community Devel-
opment Act of 1987 (42 U.S.C. 11502) is amended bv inserting 
"pursuant to the amendments made by section 834 of the Housing 
and Community Development Act of 1992" before the first comma. 
Subtitle C—^Miscellaneous Programs 
SEC. 851. COMMUNITY OUTREACH ACT. 
Community 
(a) SHORT TITLE.—^This section may be cited as the "Community 
Partnership Act 
Outreach Partnership Act of 1992". 
o
f 1992. 
(b) PURPOSE.—^The Secretary shall carry out, in accordance ^^^ ^^^'^ 
with this section, a 5-year demonstration program to determine 
the feasibility of facilitating partnerships between institutions of 
higher education and communities to solve urban problems through 
research, outreach, and the exchange of information. 
(c) GRANT PROGRAM.—-
(1) IN GENERAL.—^The Secretary is authorized to make 
grants to public and private nonprofit institutions of higher 
education to assist in establishing or canying out research 
and outreach activities addressing uie problems of urban areas. 
(2) USE OF GRAN:rs.—Grants imder this Act shall be used 
to establish and operate Community Outreach Partnership Cen-
ters (hereafter in this section referred to as "Centers") which 
shall— 
(A) conduct competent and qualified research and 
investigations on theoretical or practical problems in large 
and small cities; and 
(B) facilitate! partnerships and outreach activities 
between institutions of higher education, local commu-
nities, and local governments to address urban problems. 
(3) SPECIFIC PROBLEMS.—^Research and outreach activities 
assisted under this Act shall focus on problems associated with 
note. 
106 STAT. 3856 
PUBLIC LAW 102-550—OCT. 28, 1992 
housing, economic development, neighborhood revitalization, 
infrastructure, health care, job training, education, crime 
prevention, planning, commimity organizing, and other areas 
deemed appropriate by the Secretary. 
(d) APPLICATION.—^Any public or private nonprofit institution 
of higher education may submit an application for a grant imder 
this section in such form and containing such information as the 
Secretary may require by regulation. 
(e) SELECTION CRITERIA.— 
(1) IN GENERAL.—The Secretary shall select recipients of 
grants under this section on the basis of the following criteria: 
(A) The demonstrated research and outreach resources 
available to the applicant for carrying out the purposes 
of this section. 
(B) The capability of the applicant to provide leadership 
in solving commimity problems and in making national 
contributions to solving long-term and immediate urban 
problems. 
(C) The demonstrated commitment of the applicant 
to supporting urban research and outreach programs by 
providing matching contributions for any Federal assist-
ance received. 
(D) The demonstrated ability of the applicant to 
disseminate results of research and successful strategies 
developed through outreach activities to other Centers and 
communities served through the demonstration program. 
(E) The projects and activities that the applicant pro-
poses to carry out under the grant. 
(F) The effectiveness of the applicant's strategy to pro-
vide outreach activities to communities. 
(G) The extent of need in the communities to be served 
by the Centers. 
(H) Other criteria deemed appropriate by the Sec-
retary. 
(2) RIEFERENCE.—^The Secretary shall give preference to 
institutions of higher education that imdertake research and 
outreach activities by bringing together knowledge and exper-
tise in the various social science and technical disciplines that 
relate to urban problems. 
(f) FEDERAL SHARES.—The Federal share of a grant under this 
section shall not be more than— 
(1) 50 percent of the cost of establishing and operating 
a Center's research activities; and 
(2) 75 percent of the cost of establishing and operating 
a Center's outreach activities. 
(g) NON-FEDERAL SHARES.—The non-Federal share of a grant 
may include cash, or the value of non-cash contributions, equipment, 
or other in-kind contributions deemed appropriate by the Secretary. 
(h) RESPONSIBILITIES.—^A Center established under this section 
shall— 
(1) employ the research and outreach resources of its 
sponsoring institution of higher education to solve specific 
urban problems identified by communities served by the Cfenter; 
(2) establish outreach activities in areas identified in the 
grant application as the communities to be served; 
(3) establish a community advisory committee comprised 
of representatives of local institutions and residents of the 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3857 
communities to be served to assist in identifying local needs 
and advise on the development and implementation of strate-
gies to address those issues; 
(4) coordinate outreadi activities in communities to be 
served by the Center; 
(5) facilitate public service projects in the communities 
served by the Center; 
(6) act as a clearinghouse for the dissemination of 
information; 
(7) develop instructional programs, convene conferences, 
and provide training for local community leaders, when appro-
priate; and 
(8) exchange information with other Centers, 
(i) NATIONAL ADVISORY COUNCIL.— 
(1) ESTABLISHMENT.-The Secretary shall establish a 
national advisory council (hereafter in this section referred 
to as the "coimcil ) to— 
(A) disseminate the results of research and outreach 
activities carried out under this section; 
(B) act as a clearinghouse between grant recipients 
and other institutions of higher education; and 
(C) review and evaluate programs carried out by grant 
recipients. 
(2) MEMBERS.—^The council shall be composed of 12 mem-
bers to be appointed by the Secretary as follows— 
(A) 3 representatives of State and local governments; 
(B) 3 representatives of institutions of higher education 
that receive granto under this section; 
(C) 3 individuals or representatives of organizations 
that possess significant expertise in urban issues; and 
(D) 3 representatives from community advisory 
committees creaU^d piirsuant to this section. 
(3) VACANCIES.—^A vacancy in the membership of the coun-
cil shall be filled in the manner in which the original appoint-
ment was made. 
(4) COMPENSATION.—^Members of the coimcil shall serve 
without pay. 
(5) CHAIRMAN.—^The coimcil shall elect a member to serve 
as chairperson of the (X)uncil. 
(6) MEETINGS.—^llie council shall meet at least biannually 
and at such other times as the chairman may designate. 
(j) NATIONAL CLEARINGHOUSE.—The Secretary shall estabhsh Establishment. 
a national clearinghouse to disseminate information resulting from 
the research and successful outreach activities developed through 
the Centers to grant recipients and other interested institutions 
of higher education. 
(k) AUTHORIZATIONS.—^The sums set aside by section 107 of 
the Housing and Community Development Act of 1974 for the 
purpose of this section shall be available— 
(1) to enable Centers to carry out research and outreach 
activities; 
(2) to establish and operate the national clearinghouse 
to be established under subsection (j). 
(1) REPORTING.— 
(1) IN GENERAL.—^The Secretary of Housing and Urban 
Development shall submit an annual report to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and 
106 STAT. 3858 
PUBLIC LAW 102-550—OCT. 28, 1992 
the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives. 
(2) CONTENTS.—^The report under paragraph (1) shall con-
tain a siunmary of the activities carried out under this section 
during the preceding fiscal year, and findings and conclusions 
drawn from such activities. 
42 use 5304 
SEC. 852. COMPUTERIZED DATABASE OF COMMUNTIY DEVELOPMENT 
note. 
NEEDS. 
(a) ESTABUSHMENT OF DEMONSTRATION PROGRAM.—Not later 
than the expiration of the 1-year period beginning on the date 
appropriations for the purposes of this section are made available, 
the Secretary of Housing and Urban Development (hereafter in 
this section referred to as the ''Secretarjr^) shall establish and 
implement a demonstration program to determine the feasibility 
of assisting States and imits of general local government to develop 
methods, utilizing contemporary computer technology, to— 
(1) monitor, inventory, and maintain current listings of 
the commimity development needs of the States and units 
of general local government; and 
(2) coordinate strategies within States (especially among 
various units of general local government) for meeting such 
needs. 
(b) INTEGRATED DATABASE SYSTEM AND COMPUTER MAPPING 
TOOL.— 
(1) DEVELOPMENT AND PURPOSES.—In carrying out the pro-
gram under this section, the Secretary shall provide for the 
development of an integrated database system and computer 
mapping tool designed to efficiently (A) collect, store, process, 
and retrieve information relating to priority nonhousing 
community development needs within States, and (B) coordi-
nate strategies for meeting such needs. Tlie integrated database 
system and computer mapping tool shall be designed in a 
manner to coordinate and facilitate the preparation of commu-
nity development plans imder section 104(mXl) of the Housing 
and Community Development Act of 1974 and to process any 
information necessary for such plans. 
(2) AVAILABILITY TO STATES.—The Secretary shall make 
the integrated database system and computer mapping tool 
developed pursuant to this subsection available to States with-
out chaise. 
(3) COORDINATION WITH EXISTING TECHNOLOGY.—The Sec-
retary shall, to the extent practicable, utilize existing tech-
nologies and coordinate such activities with existing data sys-
tems to prevent duplication. 
(c) TECHNICAL ASSISTANCE.—Under the program imder this 
section, the Secretary shall provide consultation and advice to States 
£uid units of general local government regarding the capabilities 
and advantages of the integrated database system and computer 
mapping tool developed pursuant to subsection (b) and assistance 
in installing and using the database system and mapping tool. 
(d) GRANTS.— 
(1) AUTHORITY AND PURPOSE.—The Secretary shall, to the 
extent amoimts are made available under appropriation Acts 
pursuant to subsection (g), make grants to States for capital 
costs relating to installation and use of the integrated database 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3859 
system and computer mapping tool developed pursuant to sub-
section (b). 
(2) LIMITATIONS.—^The Secretary may not make more than 
one grant under this subsection to any single State. The Sec-
retary may not make a grant under this subsection to any 
single State in an amoimt exceeding $1,000,000. 
(3) APPUCATION A]^D SELECTION.—The Secretary shall pro-
vide for the form and manner of applications for grants under 
this subsection. The Secretary shall establish criteria for the 
selection of States which have submitted applications to receive 
grants under this section and shall select recipients according 
to such criteria, which shall give priority to States havine, 
on a long-term basis (as determined by the Secretary), levels 
of unemployment above the national average level. 
(e) STATE COORDINATION OF LOCAL NEEDS.—Each State that 
receives a grant under subsection (d) shall annually submit to 
the Secretary a report containing a summary of the priority 
nonhousing community development needs within the State. 
(D REPORTS BY SECRETARY.—The Secretary shall annually sub-
mit to the Committees on Banking, Finance and Urban Affairs 
of the House of Representatives and Banking, Housing, and Urban 
Affairs of the Senate, a report containing a summary of the informa-
tion submitted for the year by States pursuant to subsection (e), 
which shall describe the priority nonhousing community develop-
ment needs within such States. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for each of the fiscal years 1993 and 1994, 
$10,000,000 to carry out the program estabUshed under this section. 
SEC. 858. COMMUNTIY INVESTMENT CORPORATION DEMONSTRATION. 
(a) SHORT TITLE.—^This section may be cited as the "Community 
Investment Corporation Demonstration Act". 
(b) COMMUNITY INVESTMENT CORPORATION DEMONSTRATION.— 
(1) FINDINGS.—The Congress finds that^ 
(A) the Nation's urban and rural communities face 
critical social and economic problems arising from lack 
of growth; growing numbers of low-income persons and 
persons living in poverty; lack of employment and other 
opportunities to improve the quality of life of these resi-
dents; and lack of capital for business located in, or seeking 
to locate in these communities; 
(B) the future well-being of the United States and 
its residents depends on the restoration and maintenance 
of viable local economies, and will require increased public 
and private investment in low-income housing, business 
development, and economic and community development 
activities, and technical assistance to local organizations 
carrying out revitalization strategies; 
(C) lack of expertise and technical capacitv can signifi-
cantly limit the ability of residents and local institutions 
to effectively carry out revitalization strategies; 
(D) the Federal Government needs to develop new 
models for facilitating local revitalization activities; 
(E) indigenous community-based financial institutions 
play a significant role in identifying and responding to 
community needs; and 
Community 
Investment 
Corporation 
Demonstration 
Act. 
42 use 5305 
note. 
106 STAT. 3860 
PUBLIC LAW 102-550—OCT. 28, 1992 
(F) institutions, such as South Shore Bank (Chicago, 
Illinois), 
Southern 
Development 
Bancorporation 
(Arkadelphia, Arkansas), Center for Community iSelf Help 
(Durham, North Carolina), and Community Capital Bank 
(Brooklyn, New York), with a primary mission of 
promoting 
community development have proven their ability to 
promote revitalization and are appropriate models for 
restoring economic stability and growth in distressed 
commimities and neighborhoods. 
(2) PURPOSES.—^The demonstration program carried out 
under this section shall— 
(A) improve access to capital for initiatives which bene-
fit residents and businesses in targeted geographic areas; 
and 
(B) test new models for bringing credit and investment 
capital to targeted geographic areas and low-income per-
sons in such areas through the provision of assistance 
for capital, development services, and technical assistance 
(3) DEFINITIONS.—As used in this section— 
(A) the term "Federal financial supervisory agency' 
means— 
(i) the Comptroller of the Currency with respef t 
to national banks; 
(ii) the Board of (lovemors of the Federal Reser e 
System with respect to State-chartered banks whi;h 
are members of the Federal Reserve System and ba: ik 
holding companies; 
(iii) the Federal Deposit Insurance Corporat'on 
with respect to State-chartered banks and savings 
banks which are not members of the Federal Rese eve 
System and the deposits of which are insured by th3 
Federal Deposit Insurance Corporation; 
(iv) the National Credit Union Administra don 
Board with respect to insured credit union associations; 
and 
(v) the Office of Thrift Supervision with re pect 
to insured savings associations and savings and loan 
holding companies that are not bank hciding 
companies; 
(B) the term "commimity investment corpontion" 
me£uis an eligible organization selected by the Secetary 
to receive assistance pursuant to this section; 
(C) the term "development services" means activities 
that are consistent with the purposes of this sectir n and 
which support and strengthen the lending and inveitment 
activities undertaken by eligible organizations including— 
(i) the development of real estate; 
(ii) administrative activities associated with the 
extension of credit or necessary to make an investment; 
(iii) marketing and management assistance; 
(iv) business planning and counseling services; and 
(v) other capacity building activities whici enable 
borrowers, prospective borrowers, or entities in which 
eli^ble organizations have invested, or expect M invest, 
to improve the likelihood of success of their activities; 
(D) the term "eligible organization" means ail entity— 
(i) that is organized as— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3861 
/ 
(I) a depository institution holding company 
as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813); or 
(II) a nonprofit organization— 
(aa) that is organized under State law; 
(bb) has no part of its net earnings inuring 
to tiie benefit of any member, founder, 
contributor, or other person; 
(cc) complies with standards of financial 
accountability acceptable to the Secretary; and 
(dd) is affiliated with a nondepository 
lending institution; or is affiliated with a regu-
lated fmancial institution but is not a subsidi-
ary tiiereof; 
(ii) that has as its primary mission the revitaliza-
tion of a targeted geographic area; 
(iii) that maintams, through significant represen-
tation on its governing board and otherwise, account-
abUity to community residents; 
(iv) that has principals active in the implementa-
tion of its programs who possess significant experience 
j 
in lending and the development of affordable hous-
ing, small business development, or community revital-
ization; 
(v) that directiy or through a subsidiary or affiUate 
carries out development services; and 
(vi) that will match any assistance received dollar-
for-dollar with non-Federal sources of funds; 
(E) the term "equity investment" means a capital con-
tribution throi^h the purchase of nonvoting common stock 
or through equity grants or contributions to capital reserves 
or surplus, subject to terms and conditions satisfactory 
to the Secretary; 
(F) the term low-income person" means a person in 
a family whose income does not exceed 80 percent of the 
median income for the area, as determined by the Secretary 
with adjustments for smaller and lar^r families; 
(G) the term "regulated financial institution" means 
an insured depository institution (as defined in section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), 
or an insured credit union as defined in section 101 of 
the Federal Credit Union Act (12 U.S.C. 1752)); 
(H) the term "Secretary" means the Secretary of Hous-
ing and Urban Development; 
(I) the term "targeted geographic area" means a geo-
graphically contiguous area of chronic economic distress, 
as measured by unemployment, growth lag, poverty, lag 
in growth of per capita income, extent of blight and dis-
investment, fiscal distress, or other indicators deemed 
appropriate by the Secretary, that has been identified by 
an eligible organization as the area to be served by it; 
and 
(J) an entity is an "afiiliate" of another entity if the 
first entity controls, is controlled by, or is under common 
control with tiie other entiW. 
(4) SELECTION CRITERIA.—The Secretary shall select eligible 
organizations from among applications submitted to participate 
106 STAT. 3862 
PUBLIC LAW 102-550—OCT. 28, 1992 
in the demonstration program, using selection criteria based 
on— 
(A) the capacity of the eligible organizations to carry 
out the purposes of this section; 
(B) the range and comprehensiveness of lending, 
investment strategies, and development services to he 
offered by the organizations directly or through subsidiaries 
and affiliates thereof; 
(C) the types of activities to be pursued, including 
lending and development of small business, agriculture, 
industrial, commercial, or residential projects; 
(D) the extent of need in the targeted geographic area 
to be served; 
(E) the experience and background of the principals 
at each eligible organization responsible for carrying out 
the purposes of this section; 
(F) the extent to which the eligible organizations 
directly or through subsidiaries and afaliates luus success-
fully implemented other 
rovitalization 
activities; 
(G) an appropriate distribution of eligible organizations 
among 
regions 
of the United States; and 
(H) other criteria determined to be appropriate by the 
Secretary and consistent with tiie purposes or this section. 
(5) PROGRAM ASSISTANCE.—The Secretary shall— 
(A) carry out, in accordance with this section, a pro-
gram to improve access to capital and demonstrate the 
feasibility of facilitating the revitalization of targeted 
geographic areas by providing assistance to eligible 
organizations; 
(B) accept applications 
firom 
eligible organizations; and 
(C) select eligible organizations to receive assistance 
pursuant to this section. 
(6) AcnvmES REQUIRED.—All eligible organizations receiv-
ing assistance pursuant to this section are required to engage 
in activities that provide access to capital for mitiatives which 
benefit residents and businesses in targeted geographic areas. 
(7) CAPITAL ASSISTANCE.— 
(A) IN GENERAL.— 
(i) IN GENERAL.—^The Secretary shall make grants 
and loans to eligible organizations. 
(ii) LOANS.—Assistance provided to a depository 
institution holding company that is an eligible 
organization as denned in paragraph (SXDXiXD shall 
be in the form of a loan to be repaid to the Secretary. 
The terms and conditions of each loan shall be deter-
mined by the Secretary based on the ability of such 
entity to repay> except that interest shall accrue at 
the current Treasury rate for obhgations of comparable 
maturity. 
(iii) GRANTS OR LOANS.—^Assistance provided to an 
eligible organization that is a nonprofit organization, 
as defined in paragraph (SXDXiXID, may be in the 
form of a grant or a loan. If an eligible organization 
that is a nonprofit organization uses assistance tiiat 
it received under this section to provide assistance 
to a for-profit entity, the assistance provided by the 
nonprofit organization must be in the form of a loan 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3863 
with interest to be repaid to the nonprofit organization 
and the nonprofit organization must use the proceeds 
of the loan tor activities consistent with this section. 
(B) ELIGIBLE ACnvmES.—Capital assistance may only 
be used to support the following activities that faolitate 
revitalization oi tiurgeted geographic areas or that provide 
economic opportunities for low-income persons— 
(i) increasing the capital available for the purpose 
of making loans; 
(ii) providing fiinds for equity investments in 
projects; 
(iii) providing a portion of loan loss reserves of 
regulated 
financial 
institutions; and 
(iv) providing credit enhancement. 
(C) CAPITAL REQUIREMENTS.—^Any investment derived 
firom assistance provided by the Seoretary and made by 
an eligible organization to a regulated financial institution 
shall not be included as an asset in calculating compliance 
with applicable capital standards. Such standards shall 
be satisfied from sources other than assistance provided 
under this section. 
(D) AUTHORIZATION.—^There are authorized to be appro-
priated to carry out this paragraph $25,000,000 for fiscal 
year 1993 and $26,000,000 for fiscal year 1994 to be used 
to provide capital assistance to eligible organizations. 
Funds appropriated pursuant to this subparagraph shall 
remain available untu expended. 
(8) DEVELOPMENT SERVICES AND TECHNICAL ASSISTANCE 
GRANTS.— 
(A) IN GENERAL.—The Secretary shall— 
(i) provide grants or loans to eligible organizations 
for the provision of development services that support 
and contribute to the success of the mission of such 
organizations; and 
(ii) provide, or contract to provide, technical assist-
ance to eligible organizations to assist in establishing 
program activities that are consistent with the pur-
poses of this section. 
(B) AUTHORIZATION.—^There are authorized to be appro-
priated to carry out this paragraph, $15,000,000 for fiscal 
year 1993 and $15,600,000 for fiscal year 1994. Funds 
appropriated pursuant to this subparagraph shall remain 
availaole until expended. 
(9) TRAINING PROGRAM.— 
(A) IN GENERAL.—The Secretai^ shall establish, or con-
tract to establish, an ongoing training program to assist 
eligible organizations and their staffs m developing the 
capacity to carry out the purposes of this section. 
(B) AUTHORIZATION.—^There are authorized to be appro-
priated to cany out this paragraph $2,000,000 for fiscal 
year 1993 and $2,100,000 for fiscal year 1994. Funds appro-
priated pursuant to tiiis subparagraph shall remain avail-
able until expended. 
(10) REPORTS.—^The Secretarv shall determine the appro-
priate reporting requirements witn which eligible organizations 
receiving assistance under this section must comply. 
(11) ADVISORY BOARD.— 
Appropriation 
authorization. 
Appropriation 
authorization. 
Establishment. 
Appropriation 
authorization. 
59-194 O—93 
8 : QL 3 (Pt. 5) 
106 STAT. 3864 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) IN GENERAL.—^In establishing requirements to carry 
out the provisions of this section, and in considering 
_ 
applications under this section, the Secretary shall consult 
with an advisory board comprised of the following members: 
(i) the Administrator of the Small Business 
,. 
Administration; 
(ii) two representatives from among the Federal 
financial supervisory agencies who possess expertise 
in matters related to extending credit to persons in 
low-income communities; 
(iii) two representatives of organizations that pos-
sess expertise m development of low-income housmg; 
(iv) two representatives of organizations that pos-
sess expertise in economic development; 
(v) two representatives of organizations that pos-
sess expertise in small business development; 
(vi) two representatives from organizations that 
possess expertise in the needs of low-income commu-
nities; and 
(vii) two representatives from community invest-
ment corporations receiving assistance under tiiis 
section. 
(B) CHAIRPERSON.—The Board shall elect from among 
its members a chairperson who shall serve for a term 
of 2ye£irs. 
(C) TERMS.—^The members shall serve for terms of 
3 years which shall expire on a staggered basis. 
(D) REIMBURSEMENT.—^The members shall serve with-
out additional compensation but shall be reimbursed for 
travel, per diem, and other necessary expenses incurred 
in the performance of their duties as members of the 
advisory board, in accordance with sections 5702 and 5703 
of title 5, United States Code. 
(E) DESIGNATED REPRESENTATIVES.—A member who is 
necessarily absent from a meeting of the board, or of a 
committee of the board, may participate in such meeting 
through a duly designated representative who is serving 
in the same agency or organization as the absent member. 
(F) QUORUM.—^The presence of a msgority of members, 
or their representatives, shall constitute a quorum. 
(12) EVALUATION AND REPORT.—^The Secretary shall submit 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Banking, Finance and 
Urban Affairs of the House of Representatives an annual report 
containing a summary of the activities carried out under this 
section during the fiscal year and any preliminary findings 
or conclusions drawn from the demonstration program. 
(13) No BENEFIT RULE.—^To the extent that assistance is 
provided to an eligible organization that is a depositonr institu-
tion holding company, the Secretary shall ensure, to the extent 
practicable, that such assistance does not inure to the benefit 
of directors, ofiicers, employees and stockholders. 
(14) REGULATIONS.—(A) The Secretary shall issue such 
regulations as may be necessary to carry out the provisions 
of this subsection. 
(B) The appropriate Federal financial supervisory agency, 
by regulation or order— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3865 
(i) may restrict any regulated financial institution's 
receipt of an extension of credit firom, or investment by, 
an eligible organization; 
(ii) may restrict the making, by a regulated financial 
institution or holding company, of an extension of credit 
to, or investment in, an eligible organization; and 
(iii) shall prohibit any transaction that poses an undue 
risk to the affected deposit insurance fimd. 
(C) To the extent practicable, the Secretary and the Federal 
financial supervisory agencies shall coordinate the development 
of regulations and other program guidelines. 
(15) SAFETY AND SOUNDNESS OF INSURED DEPOSITORIES.— 
Nothing in this section shall limit the applicability of other 
law relating to the safe and sound operation and management 
of a regulated financial institution (or a holding company) affili-
ated with an eligible organization or receiving assistance pro-
vided under this section. 
(16) EFFECTIVE DATE.—^This section shall become effective 
6 months 
firom 
the date of enactment of this Act. 
SEC. 8S4. EMERGENCY ASSISTANCE FOR LOS ANGELES. 
(a) IN GENERAL.—Of the fimds made available under 107(b) 
of the Housing and Community Development Act of 1974 for pur-
poses of this section, $3,000,000 shall be made available to each 
of the following: 
(1) A nonprofit community-based public benefit corporation 
which was created in response to the civil disturbcmces of 
April 29,1992, through May 6,1992, in Los Angeles, California, 
with the support of the Speaker of the California State Assem-
bly and commimity elected officials representing the affected 
areas. 
(2) A nonprofit public benefit corporation established by 
the Mayor of Los Angeles and the Governor of California. 
(b) USE OF FUNDS.—Such fimds shall be used to carry out 
a community revitalization strategy in areas for which the Presi-
dent, pursuant to title IV or V of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, declared that a mtgor disaster 
or emergency existed for the purposes of such Act, as a result 
of the civil disturbances involving acts of violence occurring on 
or after April 29,1992, and before May 6,1992. 
(c) STRATEGY.—Such strategy shedl— 
(1) include efforts to create jobs in distressed neighbor-
hoods, spur community-based economic development, improve 
housing accessibility and affordability, and address other 
community development needs; and 
(2) be developed in consiiltation with low-income residents 
and commiinity leaders in the distressed areas. 
(d) ELIGIBLE ACTIVITIES.—Funds made available imder this 
subsection may be used for eligible activities pursuant to section 
105 of the Housing and Community Development Act of 1974 or 
to provide seed capital to nonprofit community development corpora-
tions to carry out the strategy developed in subsection (cX2). 
(e) MATCH REQUIRED.—^Funds provided under this section shall 
be matched with private or public non-Federal funds in an amount 
not less than 50 percent of the fimds provided under this section. 
106 STAT. 3866 
PUBLIC LAW 102-550—OCT. 28, 1992 
TITLE IX—REGULATORY AND 
MISCELLANEOUS PROGRAMS 
Subtitle A—Miscellaneous 
SEC. 
901. 
HUD 
RESEARCH 
AND 
DEVELOPMENT. 
Appropriation 
Section 501 of the Housing and Urban Development Act of 
authorization. 
jg^g (12 u.S.C. 1701z-l) is amended by striking the second sen-
tence and all that follows and inserting tne following new sentence: 
There is authorized to be appropriated to carry out this title 
$35,000,000 for fiscal year 1993 and $36,470,000 for fiscal year 
1994.". 
SEC. 902. 
ADMINISTRATION OF DEPARTMENT OF HOUSING AND 
URBAN 
DEVELOPMENT. 
(a) SPECIAL ASSISTANT FOR INDIAN AND ALASKA NATIVE PRO-
GRAMS.— 
(1) RESPONSIBILITIES.—Section 4(eXl) of the Department 
of Housing and Urban Development Act (42 U.S.C. 3533(eXl)) 
is amended— 
(A) by inserting "(A)" after "(1)"; 
(B) in the first sentence, by striking "responsible" and 
all that follows through "development" and inserting 
"located in the Office of the Assistant Secretary for Public 
and Indian Housing"; and 
(C) by adding at the end the following new subpara-
graphs: 
"(B) The Special Assistant for Indian and Alaska Native Pro-
grams shall be appointed based solely on merit and shall be covered 
under the provisions of title 5, United States Code, governing 
appointments in the competitive service. 
"(C) The Special Assistant for Indian and Alaska Native Pro-
grams shall be responsible for— 
"(i) administering, in coordination with the relevant office 
in the Department, the provision of housing assistance to Indian 
tribes or Indian housing authorities under each program of 
the Department that provides for such assistance; 
"(ii) administering the community development block grant 
program for Indian tribes under title I of the Housing and 
Community Development Act of 1974 and the provision of 
assistance to Indian tribes under such Act; 
"(iii) directing, coordinating, and assisting in managing 
any regional offices of the Department that administer Indian 
programs to the extent of such programs; and 
"(iv) coordinating all i)rograms of the Department relating 
to Indian and Alaska Native housing and commiinity develop-
ment. 
"(D) The Secretary shall include in the annual report under 
section 8 a description of the extent of the housing needs for 
Indian families and commimity development needs of Indian tribes 
in the United States and the activities of the Department, and 
extent of such activities, in meeting such needs.". 
42 use 3533 
(2) TRANSFER OF FUNCTIONS.—^Not later than the expiration 
"°*®- 
of the 180-day period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Development 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3867 
shall transfer to the Special Assistant for Indian and Alaska 
Native Programs any functions and duties described in section 
4(eXlXB) of the Department of Housing and Urban Develop-
ment Act (as added by paragraph (1) of this subsection). 
(3) STAFF.—Not later than the expiration of the 1-year 42 use 3533 
period beginning on the date of the enactment of this Act, ^°^-
the Secretary of Housing and Urban Development shall transfer 
from offices within the Department of Housing and Urban 
Development to the office of the Special Assistant for Indian 
and Alaska Native Programs such staff, having experience and 
capacity to administer Indian housing and community develop-
ment programs, as may be necessary and appropriate to assist 
the Special Assistant in carrying out the responsibilities under 
section 4(eXlXB) of the Department of Housing and Urban 
Development Act (as added by paragraph (1) of this subsection). 
(b) AVOIDANCE OF FORECLOSURE ON MORTGAGES HELD BY SEC-
RETARY.—Section 7(i) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(i)) is amended— 
(1) in paragraph (5), by inserting before the semicolon 
the following: "; except that with respect to any mortgage 
held by the Secretary, the Secretary shall, subject to the avail-
ability of amounts provided in appropriation Acts, implement 
the authority under this paragraph to reduce the interest rate 
on the mortgage to a rate not less than the rate for recently 
issued marketable obligations of the Treasury having a com-
parable maturity if (and to the extent that) such a reduction, 
when taken together with other actions authorized under the 
National Housing Act, is necessary to avoid foreclosure on 
the mortgage; and except that for any mortgage for which 
the interest rate is reduced pursuant to an appropriation under 
the preceding clause, if the Secretary determines that the 
income or ability of the mortgagor to make interest payments 
has increased, the Secretary may (not more than once for 
each such mortgage) increase such interest rate to a rate not 
exceeding the prevailing market rate, as determined by the 
Secretary^; and 
(2) in paragraph (6), by inserting before the period the 
foUoMdng: ", including any provisions relating to the authority 
or reqiiirements under paragraph (5)". 
(c) PROGRAM MONITORING AND EVALUATION.—The first sentence Appropriation 
of section 7(rX6) of the Department of Housing and Urban Develop- authorization. 
ment Act (42 U.S.C. 3535(rX6)) is amended to read as follows: 
There are authorized to be appropriated to carry out this subsection 
such sums as may be necessary for fiscal year 1993 and fiscal 
year 1994.". 
SEC. 903. PARTICIPANT'S CONSENT TO RELEASE OF INFORMATION. 
(a) IN GENERAL.—Section 904 of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) 
is amended by adding at the end the following new subsection: 
"(e) CONDITIONS OF RELEASE OF INFORMATION BY THIRD PAR-
TIES.—An applicant or participant imder any program of the Depart-
ment of Housing and Urban Development may not be required 
or requested to consent to the release of information by third 
parties as a condition of initial or continuing eligibility for psurticipa-
tion in the program unless— 
106 STAT. 3868 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(1) the request for consent is made, and the information 
secured is maintained, in accordance with this section, section 
552a of title 5, United States Code; and 
"(2) the consent that is requested is appropriately limited, 
with respect to time and information relevant and necessary 
to meet the requirements of this section.". 
42 use 3544 
(b) FORMS.— 
°°*® 
(1) N E W FORM.—Not later than the expiration of the 180-
day period beginning on the date of the enactment (^ this 
Act, the Secretary of Housing and Urban Development shall 
develop a release form that meets the requirements of section 
904 of the Stewart B. McKinnev Homeless Assistance ^nend-
ments Act of 1988, as amended by this section. In developing 
the form, the Secretary shall consult with interested parties, 
which shall include not less than 2 representatives oi public 
housing agencies, 
1 representative 
of a national 
tenant 
organization, 1 representative of a State tenant organization, 
and 1 representative of a legal group representing tenants. 
(2) EFFECT OF OLD FORM.—^During the period oeginning 
upon the date of the enactment of this Act and ending upon 
implementation of the use of the form developed under para-
graph (1), the benefits provided to an applicant or participant 
under any program of the Department or Housing and Urban 
Development, or eligibilitv for such benefits, may not be termi-
nated, denied, suspendea, or reduced because of any failure 
to sign any form authorizing the release of information firom 
any third party (including Form HUD-9886), if the applicant 
or participant otherwise discloses all 
financial 
information 
relating to the application or recertification. 
SEC. 904. NATIONAL INSTITUTE OF BUILDING SCIENCEg. 
(a) 
TECHNICAL 
CORRECTION TO HOUSING AND 
COMMUNITY 
DEVELOPMENT ACT OF 1974.—Section 809 of the Housing and 
Community Development Act of 1974 (12 U.S.C. 1701J-2) is 
amended— 
(1) by redesignating subsections (h) and (i) as subsections 
(i) and (j), respectively; and 
(2) by inserting after subsection (g) the material inserted 
bv the amendment made bv section 952(bX2) of the Cranston-
Gonzalez National Afibrdaole Housing Act (Public Law 101-
625; 104 Stat. 4418). 
12 use i748h-i. 
(b) TECHNICAL CORRECTION TO NATIONAL HOUSING ACT.—Sec-
tion 809 of the National Housing Act is amended by striking sub-
section (h) (as added by section 952(b) of the Cranston-Gonzalez 
National Affordable Housing Act). 
Discrimination. 
SEC. 905. FAIR HOUSING INITIATIVES PROGRAM. 
42 use 3616a 
(a) FINDINGS.—The Congress finds that— 
"°^- 
(1) in the past half decade, there have been mi^'or legisla-
tive and administrative changes in Federal fair housing and 
fair lending laws and substantial improvements in the Nation's 
understanding of discrimination in the housing markets; 
(2) in response to evidence of continuing housing discrimi-
nation, the Congress passed the Fair Housing Act Amendments 
of 1988, to provide for more effective enforcement of fair housii^ 
rights through iudicial and administrative avenues and to 
expand the number of protected classes covered under Federal 
fair housing laws; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3869 
(3) in the Financial Institutions Reform, Recovery and 
Enforcement Act of 1989, the Congress expanded the disclosure 
provisions under the Home Mortgage Disclosure Act to provide 
increased information on the mortg£ige lending patterns of 
financial institutions; 
(4) in the Americans with Disabilities Act of 1990, the 
Congress provided a clear and comprehensive national mandate 
for me ehmination of discrimination against individuals with 
disabilities; 
(5) in 1991, data collected under the Home Mortgage Disclo-
sure Act disclosed evidence of pervasive discrimination in the 
Nation's mortgage lending markets; 
(6) the Housing Discrimination Siirvey, released by the 
Department of Housmg and Urban Development in 1991, found 
that Hispanic and African-American homeefeekers experience 
some form of discrimination in at least half of their encounters 
with sales and rental agents; 
(7) tiie Fair Housing Initiatives Program should be revised 
and expanded to reflect the significant changes in the fair 
housing and fair lending area that have taken place since 
the Program's initial authorization in the Housing and Commu-
nity Development Act of 1987; 
(8) continuing educational efforts by the real estate indus-
try are a useful way to increase understanding by the public 
of their fair housing rights and responsibilities; and 
(9) the proven emcacy of private nonprofit fair housing 
enforcement organizations and community-based efforts makes 
support for these organizations a necessary component of the 
fair housing enforcement system. 
(b) IN GENERAL.^-Section 561 of the Housing and Community 
Development Act of 1987 (42 U.S.C. 3616 note) is amended— 
42 use 36i6a. 
(1) by redesignating subsections (b) through (e) as sub-
sections (e) through (h), respectively; 
(2) by inserting after subsection (a) the following new sub-
sections: 
"(b) PRIVATE ENFORCEMENT INITIATIVES.— 
"(1) IN GENERAL.—^The Secretary shall use funds made 
available under this subsection to conduct, through contracts 
with private nonprofit fair housing enforcement organizations, 
investigations of violations of the rights granted under title 
VIII of the Civil Rights Act of 1968, and such enforcement 
activities as appropriate to remedy such violations. The Sec-
retary ma3^ enter into multiyear contracts and take such other 
action as is appropriate to enhance the effectiveness of such 
investigations and enforcement activities. 
"(2) AcnvmES.—^The Secretary shall use funds made avail-
able under this subsection to conduct, through contracts with 
private nonprofit fair housing enforcement organizations, a 
range of investigative and enforcement activities designed to— 
"(A) carry out testing and other investigative activities 
in accordance with subsection (bXD, including building the 
capacity for housing investigative activities in unserved 
or underserved areas; 
"(B) discover and remedy discrimination in the public 
and private real estate markets and real estate-related 
transactions, including, but not limited to, the making or 
purchasing of loans or the provision of other financial 
106 STAT. 3870 
PUBLIC LAW 102-550—OCT. 28, 1992 
Contracts. 
Contracts. 
assistance sales and rentals of housing and housing 
advertising; 
"(C) carry out special projects, including the develop-
ment of prototypes to respond to new or sophisticated forms 
of discrimination against persons protected under title VIII 
of the Civil Rights Act of 1968; 
"(D) provide technical assistance to local fair housing 
organizations, and assist in the formation and development 
of new fair housing organizations; and 
"(E) provide mnds for the costs and expenses of litiga-
tion, including expert witness fees. 
*
*
(
c
) FUNDING OF FAIR HOUSING ORGANIZATIONS.— 
**(1) IN GENERAL.—^The Secretary shall use funds made 
available under this section to enter mto contracts or coopera-
tive agreements with qualified fair housing enforcement 
organizations, other private nonprofit fair housing enforcement 
organizations, and nonprofit groups organizing to build their 
capacity to provide fair housing enforcement, for the purpose 
of supporting the continued development or implementation 
of initiatives which enforce the rights granted under title VIII 
of the Civil Rights Act of 1968, as amended. Contracts or 
cooperative a^eements may not provide more than 50 percent 
of the operatmg budget of the recipient organization for any 
one year. 
"(2) CAPACITY ENHANCEMENT.—The Secretary shall use 
funds made available under this section to help establish, orga-
nize, and build the capacity of fair housing enforcement 
organizations, particularly in those areas of the country which 
are currently underserved by fair housing enforcement 
organizations as well as those areas where large concentrations 
of protected classes exist. For purposes of meeting the objectives 
of this paragraph, the Secretary may enter into contracts or 
cooperative agreements with qualified fair housing enforcement 
organizations. The Secretary shall establish annual goals which 
reflect the national need for private fair housing enforcement 
organizations. 
"(d) EDUCATION AND OUTREACH.— 
"(1) IN GENERAL.—^The Secretary, through contracts with 
one or more qualified fair housing enforcement organizations, 
other fair housing enforcement organizations, and other non-
profit organizations representing groups of persons protected 
imder title VIII of the Civil Rights Act of 1968, shall esteblish 
a national education and outreach program. The national pro-
gram shall be designed to provide a centralized, coordinated 
efibrt for the development and dissemination of fair housing 
media products, including— 
"(A) public service announcements, both audio and 
video; 
"(B) television, radio and print advertisemente; 
"(C) posters; and 
"(D) pamphlets and brochures. 
The Secretory shall designate a portion of the amoimte provided 
in subsection (gX4) for a national program specifically for activi-
ties related to the annual national fair housing month. The 
Secretory shall encourage cooperation with real estoto industry 
organizations in the national education and outreach program. 
The Secretory shall also encourage the dissemination of edu-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3871 
cational information and tedinical assistance to support compli-
ance with the housing adaptability and accessibility guidelines 
contained in the Fair Housing Act Amendments of 1988. 
"(2) REGIONAL AND LOCAL PROGRAMS.—The Secretary, Contracts. 
through contracts with fair housing enforcement organizations, 
other nonprofit organizations representii^ groups of persons 
protected under title VIII of the Civil Rights Act of 1968, 
State and local agencies certified by the Secretary under section 
810(f) of the Fair Housing Act, or other pubUc or private entities 
that are formulating or carrying out programs to prevent or 
eliminate discriminatory housing practices, shall establish or 
support education and outreach programs at the regional and 
local levels. 
••(3) COMMUNITY-BASED PROGRAMS.—The Secretary shall 
provide fiinding to fair housing organizations and other non-
profit organizations representing groups of persons protected 
under title VIII of the Civil lUghts Act of 1968, or other public 
or private entities that are formulating or carrying out pro-
grams to prevent or eliminate discriminatory housing practices, 
to support community-based education and outreach activities, 
including school, church, and community presentations, con-
ferences, and other educational activities."; 
(3) in subsection (g), as redesignated by paragraph (1) 
by striking all in the first sentence after "section, and inserting 
the following: "$21,000,000 for fiscal year 1993 and $26,000,000 
for 
fiscal 
year 1994, of which— 
"(1) not less than $3,820,000 for fiscal year 1993 and 
$8,500,000 for fiscal year 1994 shall be for private enforcement 
initiatives authorized under subsection (b), divided equally 
between activities specified under subsection O
b
X
D and those 
specified under subsection (bX2); 
"(2) not less than $2,230,000 for fiscal year 1993 and 
$8,500,000 for 
fiscal 
year 1994 shall be for qualified fair housing 
enforcement organizations authorized under subsection (cXD; 
"(3) not less than $2,010,000 for fiscal year 1993 and 
$4,000,000 for fiscal year 1994 shall be for the creation of 
new fair housing enforcement organizations authorized under 
subsection (cX2); and 
"(4) not less than $2,540,000 for fiscal year 1993 and 
$5,000,000 for fiscal year 1994 shall be for education and out-
reach programs authorized under subsection (d), to be divided 
equally between activities specified under subsection (dXD and 
those specified under subsections (dX2) and (dX3).''; and 
(4) by striking subsection (h), as redesignated by paragraph 
(1), and inserting the following: 
"(h) QUALIFIED FAIR HOUSING ENFORCEMENT ORGANIZATION.— 
(1) The term 'qualified fair housing enforcement organization' means 
any organization that— 
"(A) is organized as a private, tax-exempt, nonprofit, chari-
teble organization; 
"(B) has at least 2 years exjperience in complaint intake, 
complahit investigation, testing for fair housing violations and 
enforcement of meritorious claims; and 
"(C) is engaged in all the activities hsted in paragraph 
(IXB) at the time of appUcation for assistance under this 
section. 
106 STAT. 3872 
PUBLIC LAW 102-550—OCT. 28, 1992 
An organization which is not solely engaged in fair housing enforce-
ment activities ma^ qualify as a qualified fair housing enforcement 
organization, provided that the organization is actively engaged 
' 
in each of the activities listed in subparagraph (B). 
"(2) The term fair housing enforcement organization' means 
any organization that— 
"(A) meets the requirements specified in para^aph (IXA); 
"(B) is currently engaged in the activities specifiea in para-
graph (IXB); 
"(C) upon the receipt of funds under this section will become 
engaged in all of the activities specified in paragraph (IXB); 
and 
"(D) for purposes of fimding imder subsection (b), has at 
least 1 year of experience in the activities specified in paragraph 
(IXB). 
'*(i) PROHffirnoN ON USE OF FUNDS.—None of the fimds author-
ized under this section may be used by the Secretary for purposes 
of settling claims, satisfying judgments or fiilfilling court orders 
in any litigation action involving either the Department or housing 
providers mnded by the Department. None of the fimds authorized 
under this section may be used by tJie Department for administra-
tive costs. 
"(j) REPORTING REQUIREMENTS.—Not later than 180 days afl^er 
the close of each fiscal year in which assistance under this section 
is fiimished, the Secretary shall prepare and submit to the Congress 
a comprehensive report which shall contain— 
"(1) a description of the progress made in accomplishing 
the objectives of this section; 
"(2) a summary of all the private enforcement activities 
carried out under tnis section and the use of such fimds during 
the preceding 
fiscal 
year; 
"(3) a list of all fair housing enforcement organizations 
fimdeid under this section during the preceding fiscal year, 
identified on a State-by-State basis; 
"(4) a summary of all education and outreach activities 
fimded under this section and the use of such fimds during 
the preceding 
fiscal 
year; and 
"(5) any findings, conclusions, or recommendations of the 
Secretary as a result of the 
fiinded 
activities.". 
SEC. 908. NATIONAL COMMISSION ON MANUFACTURED HOUSING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 943(f) of the 
104 Stat. 4413. 
Cranston-Croiizalez National Affordable Housing Act is amended 
to read as follows: 
"(f) AUTHORIZATION.—Of the amount appropriated pursuant to 
section 501 of the Housing and Urban Development Act of 1970 
(12 U.S.C. ITOlz-l), there shall be set aside to carry out this 
section $1,000,000 for fiscal year 1993. Any amounts provided 
pursuant to this section shall remain available until expended.". 
/ 
(b) FUNCTIONS OF THE COMMISSION.—Section 943(dXl) of the 
V 
Cranston-C^nzalez National Affordable Housing Act is amended— 
(1) in subparagraph (G), by striking "and" at the end; 
(2) by adding after subparagraph ((T) the following new 
subparagraphs: 
(H) evaluate the extent to which manufacturers in 
compliance with Federal standards do and should comply 
wiUi State implied or expressed warranty requirements; 
/ 
( ' ^ ^ 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3873 
"(I) examine the feasibility of expanding and establish-
ing standeurds governing manufactured home sales includ-
ing transportation and on-site set up; and"; and 
(3) by redesignating subparagraph (H) as subparagraph 
(J). 
(c) EXTENSION OF TERMINATION DATE.—Section 943(g) of the 
Cranston-Gonzalez National Affordable Housing Act is amended 104 Stat. 4413. 
by striking 'Sipon the expiration of the 9 months following the 
appointment of all the members under subsection (c)" and inserting 
"on October 1,1993". 
(d) STAFF.—Section 943(e) of the Cranston-Cionzalez National 
Affordable Housing Act (Public Law 101-625; 104 Stat. 44134) 104 Stat. 4413. 
is amended by adding at tiie end the following new paragraph: 
"(7) STAFF.— 
"(A) EXECUTIVE DIRECTOR.—The Commission shall 
appoint an executive director of the Conunission who shall 
be compensated at a rate fixed by the Commission, but 
which may not exceed the rate established for level V 
of the Executive Schedule under title 5, United States 
Code. 
"(B) PERSONNEL.—^In addition to the executive director, 
the (Commission may appoint and fix the compensation 
of such personnel as the Commission deems advisable, 
in accordance with the provisions of title 5, United States 
Code, governing appointments to the competitive service, 
and the provisions of chapter 51 and subchapter III of 
chapter 53 of such title, relating to classification and Gren-
eral Schedule pay rates. 
"(C) LIMITATION.—This paragraph shall be effective 
only to the extent amounts are made available in appropria-
tion Acts.". 
SEC. 907. MANUFACTURED HOUSING. 
Section 604 of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5403) is amended by adding at the end the 
foUowingnew subsection: 
*
*
(
]
) The Secretary shall develop a new standard for hardboard 
panel siding on manufactured housing taking into account durabil-
ity, longevity, consumer's costs for maintenance and any other 
relevant information pursuant to subsection (0- The Secreta^ shall 
consult with the National Manufactured Home Advisory Council 
and the National Commission on Manufactured Housing in 
establishing the new standard. The new performance standard 
developed shall ensure the durability of hardboard sidings for at 
least a normal life of a mortgage with minimum maintenance 
required. Not later than 180 days from the date of enactment 
of this subsection, the Secretary shall update the standards for 
hardboard siding.". 
SEC. 908. SEAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974. 
(a) APPUCABIUTY TO MORTGAGE ORIGINATION.—Section 3(3) 
of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2602(3)) is amended by inserting after'ni>roker," the following:'Hhe 
origination of a federally related mortgage loan (including, but 
not limited to, the taking of loan applications, loan processing, 
and the underwriting and funding of loans),". 
106 STAT. 3874 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) APPUCABIUTY TO SECOND MORTGAGES AND REFINANCINGS.— 
Section 3(1XA) of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2602(1XA)) is amended— 
(1) by inserting "or subordinate" after ''first'*; and 
(2) by inserting before the semicolon the following: ", includ-
ing any such secured loan, the proceeds of which are used 
to prepay or pay off an existing loan secured by the same 
propertjr. 
12 use 2602 
(c) REGULATIONS.—The Secretary of Housing and Urban Devel-
^°^- 
opment shall issue regulations to implement the amendments made 
by this section not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act. The regulations 
shall be issued after notice and opportunity for public comment 
pursuant to the provisions of section 553 of title 5, United States 
Code (notwithstanding subsections (aX2), (bXB), and (dX3) of such 
S6ci«ioii.) 
12 use 2602 
(d) EFFECTIVE DATE.—This section shall take effect on the 
"°^- 
date of enactment of this Act and shall not apply retroactively. 
SEC. 909. COMMUNITY REINVESTMENT ACT OF 1977. 
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 
et seq.) is amended— 
12 use 2903. 
(1) in section 804— 
(A) by inserting before the first sentence the following: 
"(a) IN GENERAL.—*; and 
(B) by adding at the end the following new subsection: 
"(b) MAJORITY-OWNED INSTITUTIONS.—In assessing and taking 
into account, under subsection (a), the record of a nonminority-
owned and nonwomen-owned financial institution, the appropriate 
Federal financial supervisory agency may consider as a factor cap-
ital investment, loan participation, and other ventures undertaken 
by the institution in cooperation with minority- and women-owned 
financial institutions and low-income credit unions provided that 
these activities help meet the credit needs of local communities 
in which such institutions and credit unions are chartered."; and 
12 use 2907. 
(2) in section 808(a), by striking "shall be treated as" and 
inserting "may be a factor in determining whether the deposi-
tory institution is". 
12 use 2901 
SEC. 910. REPORT ON COMMUNITY DEVELOPMENT LENDING. 
(a) IN GENERAL.—^Not later than 12 months after the date 
of enactment of this section, the Board of Governors of the Federal 
Reserve System, in consultation with the Comptroller of the Cur-
rency, the Chairman of the Federal Deposit Insurance Corporation, 
the Director of the Office of Thrift Supervision, and the Chairman 
of the National Credit Union Administration, shall submit a report 
to the Congress comparing residential, small business, and com-
mercial lending by insured depository institutions in low-income, 
minority, and distressed neighborhoods to such lending in other 
neighborhoods. 
(b) CONTENTS OF REPORT.—^The report required by subsection 
(a) shall— 
(1) compare the risks and returns of lending in low-income, 
minority, and distressed neighborhoods with the risks and 
returns of lending in other neighborhoods; 
(2) analyze the reasons for any differences in risk and 
return between low-income, minority, and distressed neighbor-
hocMds and otiier neighborhoods; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3875 
(3) if the risks of lending in low-income, minority, and 
distressed neighborhoods exceed the risks of lending in other 
neighborhoods, recommend ways of mitigating those risks. 
SEC. 911. SUBSroV LAYERING REVIEW. 
42 USC 3545 
(a) IN GENERAL.—^The Secretary shall establish guidelines for 
housing credit agencies, as defined imder section 42 of the Internal 
Revenue Code of 1986, to implement the requirements of section 
102(d) of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545(d)) for projects receiving assist-
since within the jurisdiction of the Department of Housing and 
Urban Development and imder section 42 of the Internal Revenue 
Code of 1986. 
(b) IN PARTICULAR.—^The guidelines established pursuant to 
subsection (a) shall— 
(1) require that the amount of equity capital contributed 
by investors to a project partnership is not less than the amount 
generally contributed by investors in current market conditions, 
as determined by the housing credit agency; and 
(2) require that project costs, including developer fees, are 
within a reasonable range, taking into account project size, 
project characteristics, project location and project risk factors, 
as determined by the housing credit agency. 
(c) EFFECTIVE DATE.—^As of January 1, 1993, a housing credit 
agency shall carry out the responsibilities of section 102(d) of the 
Housing and Urban Development Reform Act for projects allocated 
a low-income housing tax credit pursuant to section 42 of the 
Internal Revenue Code of 1986 if such agency certifies to the 
Secretary that it is properly implementing the guidelines estab-
lished under subsection (a). The Secretary may revoke the respon-
sibility delegated in the preceding sentence if the Secretary deter-
mines that a housing credit agency has failed to properly implement 
such guidelines. 
(d) APPLICABILITY.—Section 102(d) of the Department of Hous-
ing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) 
shall apply only to projects for which an application for assistance 
or insurance was filed after the date of enactment of the Housing 
and Urban Development Reform Act. 
SEC. 912. SOLAR ASSISTANCE FINANCING ENTITY. 
42 USC 5511a. 
(a) ESTABLISHMENT.—The Secretary of Housing and Urban 
Development shall establish within the Department of Housing 
and Urban Development the Solar Assistance Financing Entity 
(in this section referred to as the "Entity"). 
(b) PURPOSE.—^The purpose of the Entity shall be to assist 
in financing solar and renewable energy capital investments and 
projects for eligible buildings under subsection (c). 
(c) ELIGIBLE BUILDINGS.—The Entity may provide assistance 
under this section only for the following buildings: 
(1) SINGLE FAMILY HOUSING.—Any building consisting of 
1 to 4 dwelling imits that has a system for heating or cooling, 
or both. 
(2) MULTIFAMILY HOUSING.—Any building consisting of 
more than 4 dwelling units that has a system for heating 
or cooling, or both. 
(3) COMMERCIAL BUILDINGS.—^Any building used primarily 
to carry on a business (including any nonprofit business) that 
106 STAT. 3876 
PUBLIC LAW 102-550—OCT. 28, 1992 
is not used primarily for the manufacture or production of 
raw materials, products, or agricultural commodities. 
(4) SCHOOLS, HOSPITALS, AND AGRICULTURAL BUILDINGS.— 
Any school, any hospital, and any building used exclusively 
in connection with the harvesting, storage, or diying of agricul-
tural commodities. 
(5) OTHER BUILDINGS.—Any other building of a type that 
the Entity considers appropriate. 
(d) FINANCING OPTIONS.—Assistance provided under this sec-
tion by the Entity may be provided only for programs for financing 
solar and renewable energy capital investments and projects, which 
may include programs for making loans, making grants, reducing 
the principal obligations of loans, prepajonent of interest on loans, 
purchase and sale of loans and advances of credit, providing loan 
guarantees, providing loan downpayment assistance, and providing 
rebates and other incentives for the purchase and installation of 
solar and renewable energy measures. 
(e) AUTHORITY TO LEVERAGE OTHER FUNDS.—The Entity may 
encourage or require programs receiving assistance under this sec-
tion to supplement the assistance received under this section with 
amounts from other public and private sources, and, in making 
assistance under this section available, may give preference to 
programs that leverage amoimts from such other sources. 
(f) PROVISION OF ASSISTANCE.—^The Entity shall provide assist-
ance under this section through State agencies responsible for devel-
oping State energy conservation plans pursuant to section 362 
of the Energy Poficy and Conservation Act, or any other entity 
or agency authorized to specifically carry out the purposes of this 
section. 
(g) REGULATIONS.—Not later than the expiration of the 12-
month period beginning on the date of the enactment of this Act, 
the Secretary of Housing and Urban Development, in consultation 
with the Secretary of Energy, shall issue any regulations necessary 
to carry out this section, which shall ensure maximum flexibility 
in utilizing amounts made available under this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $10,000,000 for fiscal 
year 1993 and $10,420,000 for fiscal year 1994. Such sums are 
to be available until expended. 
(i) REPEALS.— 
(1) SOLAR ENERGY AND ENERGY CONSERVATION BANK ACT.— 
Subtitle A of title V of the Energy Security Act (12 U.S.C. 
3601 et seq.) is repealed. 
(2) FEDERAL NATIONAL MORTGAGE ASSOCLVTION CHARTER 
ACT.—Sections 315 and 316 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1723g, 1723h) are repealed. 
SEC. 913. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO 
LABOR 
WAGE 
RATES 
UNDER 
HOUSING 
PROGRAMS. 
(a) SUPPORTIVE HOUSING FOR THE ELDERLY.—Section 2020X6) 
of the Housing Act of 1959 (12 U.S.C. 1701q(j)(5)), as amended 
by section 801 of the Cranston-Gonzalez National Affordable Hous-
ing Act, is amended to read as follows: 
"(5) LABOR.— 
"(A) IN GENERAL.—^The Secretary shall take such action 
as may be necessary to ensure that all laborers and mechanics 
employed by contractors and subcontractors in the construction 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3877 
of housing with 12 or more units assisted under this section 
shall he paid wages at rates not less than the rates prevailing 
in the locality involved for the corresponding classes of laborers 
and mechanics employed on construction of a similar character, 
as determined by the Secretary of Labor in accordance with 
the Act of March 3, 1931 (commonly known as the Davis-
Bacon Act). 
"(B) EXEMPTION.—Subparagraph (A) shall not apply to any 
individual who— 
**(i) performs services for which the individual volim-
teered; 
"(iiXD does not receive compensation for such services; 
or 
"(11) is paid expenses, reasonable benefits, or a nominal 
fee for such services; and 
"(iii) is not otherwise employed at any time in the 
construction work.", 
(b) SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.— 
Section 811()X6) of the Cranston-Cjonzalez National Affordable 
Housing Act (42 U.S.C. 8013(jX6)) is amended— 
(1) by striking "(6) L
A
B
O
R STANDARDS.—The Secretary" and 
inserting the following: 
"(6) LABOR STANDARDS.— 
"(A) IN GENERAL.—The Secretary"; 
(2) by striking "assisted under this section and designed 
for dwelling uae by 12 or more persons with disabilities" and 
inserting "with 12 or more units assisted under this section"; 
(3) by inserting "commonly known as" before "the Davis-
Bacon Act"; 
(4) by striking "; but the Secretary" and all that follows 
through "undertaking the construction"; and 
(5) by adding at the end the following new subparagraph: 
"(B) EXEMPTION.—Subparagraph (A) shall not apply 
to any individual who— 
"(i) performs services for which the individual vol-
unteered; 
"(iiXI) does not receive compensation for such serv-
ices; or 
"(II) is paid expenses, reasonable benefits, or a 
nominal fee for such services; and 
"(iii) is not otherwise employed at any time in 
the construction work.". 
SEC. 914. ENERGY EFFICIENT MORTGAGES. 
(a) DEFINITION OF ENERGY EFFICIENT MORTGAGE.—Section 104 
of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12704), as amended bv section 210(aXl) of this Act, is 
further amended by adding at the end the following new paragraph: 
"(25) The term 'energy efficient mortgage' means a mort-
gage that provides financing incentives for the purchase of 
energy efficient homes, or that provides financing incentives 
to make energy efficiency improvements in existing homes by 
incorporating the cost of such improvements in the mortgage. . 
(b) UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFI-
CIENCY.—Section 946 of the Cranston-Gronzalez National Affordable 
Housing Act (42 U.S.C. 12712 note) is amended— 
106 STAT. 3878 
PUBLIC LAW 102-550—OCT. 28, 1992 
(1) in subsection (a), by striking "mortgage financing incen-
tives for energy efficiency" and inserting "energy efficient mort-
gages (as sudn term is defined in section 104 of this Act)"; 
and 
(2) in subsection (b)— 
(A) in the second sentence, by inserting ", but not 
be limited to," afler "include"; and 
(B) by inserting after the period at the end of the 
following new sentence: "The Task Force shall determine 
whether notifying potential home purchasers of the avail-
ability of energy efficient mortgages would promote energy 
efficiency in residential buildings, and if so, the Task Force 
shall recommend ai)propriate notification guidelines, and 
agencies and organizations referred to in the preceding 
sentence are authorized to implement such guidelines. . 
SEC. »16. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-
INCOME PERSONS. 
Section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701u) is amended to read as follows: 
•^EC. 3. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-
INCOME PERSONS. 
"(a) FINDINGS.—The Congress finds that^-
"(1) Federal housing and community development programs 
provide State and local governments and other recipients of 
Federal financial assistance with substantial funds for projects 
and activities that produce significant employment and other 
economic opportunities; 
"(2) low- and very low-income persons, especially recipients 
of government assistance for housing, often have restricted 
access to employment and other economic opportunities; 
"(3) the employment and other economic opportunities gen-
erated by projects and activities that receive Federal housing 
and community development assistance offer an effective means 
of empowering low- and very low-income persons, particularly 
persons who are recipients of government assistance for hous-
ing; and 
"(4) prior Federal efforts to direct employment and other 
economic opportunities generated bv Federal housing and 
community development programs to low- and very low-income 
persons have not Seen full^ effective and should be intensified. 
(b) POLICY.—It is the policy of the Congress and the purpose 
of this section to ensure that the employment and other economic 
opportimities generated by Federal financial assistance for housing 
and community development programs shall, to the greatest extent 
feasible, be directed toward low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing. 
"(c) EMPLOYMENT.— 
"(1) PUBUC AND INDIAN HOUSING PROGRAM.— 
"(A) IN GENERAL.—The Secretary shall require that 
public and Indian housing agencies, and their contractors 
and subcontractors, make their best efforts, consistent with 
existing Federal, State, and local laws and regulations, 
to give to low- and very low-income persons the training 
and employment opportunities generated by development 
assistance provided pursuant to section 5 of the United 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3879 
States Housing Act of 1937, operating assistance provided 
pursuant to section 9 of that Act, and modernization grants 
provided pursuant to section 14 of that Act. 
"(B) PRIORITY.—^The efforts required under subpara-
graph (A) shall be directed in the following order of priority: 
"(i) To residents of the housing developments for 
which the assistance is expended. 
"(ii) To residents of other developments managed 
by the public or Indian housing agency that is expend-
ing the assistance. 
"(iii) To participants in Youthbuild programs 
receiving assistance imder subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing 
Act. 
**(iv) To other low- and very low-income persons 
residing 
within 
the 
metropolitan 
area 
(or 
nonmetropolitan county) in which the assistance is 
expended. 
*
*
(
2
) OTHER PROGRAMS.— 
"(A) IN GENERAL.—^In other programs that provide 
housing and community development assistance, the Sec-
retary shall ensure that, to the greatest extent feasible, 
and consistent with existing Federal, State, and local laws 
and regulations, opportunities for training and emplojrment 
arising in connection with a housing rehabilitation (includ-
ing reduction and abatement of lead-based paint hazards), 
housing construction, or other public construction project 
are given to low- and very low-income persons residing 
within the metropolitan area (or nonmetropoUtan county) 
in which the project is located. 
**(B) PRIORITY.—^Where feasible, priority should be 
given to low- suid very low-income persons residing within 
the service area of the project or the neighboniood in 
which the project is located and to pajrticipants in 
Youthbuild programs receiving assistance under subtitle 
D of title IV of the Cranston-Gonzalez National Affordable 
Housing Act. 
"(d) CONTRACTING.— 
"(1) PUBLIC AND INDIAN HOUSING PROGRAM.— 
"(A) IN GENERAL.—The Secretary shall require that 
public and Indian housing agencies, and their contractors 
and subcontractors, make their best efforts, consistent with 
existing Federal, State, and local laws and regulations, 
to award contracts for work to be performed in connection 
with development assistance provided pursuant to section 
5 of the United States Housing Act of 1937, operating 
assistance provided pursuant to section 9 of that Act, and 
modernization grantis provided pursuant to section 14 of 
that Act, to business concerns that provide economic 
opportimities for low- and very low-income persons. 
**(B) PRIORITY.—^The efforts required under subpara-
graph (A) shall be directed in the following order of priority: 
"(i) To business concerns that provide economic 
opportunities for residents of the housing development 
for which the assistance is provided. 
"(ii) To business concerns that provide economic 
opportunities for residents of other nousing develop-
106 STAT. 3880 
PUBLIC LAW 102-550—OCT. 28, 1992 
u 
ments operated by the public and Indian housing 
agency that is providing the assistance. 
"(iii) To Youthbuild programs receiving assistance 
under subtitle D of title IV of the Cranston-Gonzalez 
National Affordable Housing Act. 
''(iv) To business concerns that provide economic 
opportimities for low- and very low-income persons 
residing 
within 
the 
metropolitan 
area 
(or 
nonmetropolitan county) in which the assistance is 
provided. 
"(2) OTHER PROGRAMS.— 
"(A) IN GENERAL.—In providing housing and commu-
nity development assistance pursuant to other programs, 
the Secretary shall ensure that, to the greatest extent 
feasible, and consistent with existing Federal, State, and 
local laws and regulations, contracts awarded for work 
to be performed in connection with a housing rehabilitation 
(including reduction and abatement of lead-based paint 
hazards), housing construction, or other public construction 
project are given to business concerns that provide eco-
nomic opportunities for low- and very low-income persons 
residing within the metropolitan area (or nonmetropolitan 
county) in which the assistance is expended. 
"(B) PRIORITY.—^Where feasible, priority should be 
given to business concerns which provide economic 
opportunities for low- and very low-income persons residing 
within the service area of the project or the neighborhood 
in which the project is located and to Youthbuild programs 
receiving assistance under subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act. 
"(e) DEFINITIONS.—For the purposes of this section the following 
definitions shall apply: 
"(1) LOW- AND VERY LOW-INCOME PERSONS.—The terms 'low-
income persons' and Very low-income persons' have the same 
meanings given the terms 'low-income families' and 'very low-
income families', respectively, in section 3(bX2) of the United 
States Housing Act of 1937. 
"(2) 
BUSINESS 
CONCERN 
THAT 
PROVIDES ECONOMIC 
OPPORTUNITIES.—The term *
a business concern that provides 
economic op(>ortunities' means a business concern that— 
"(A) provides economic opportunities for a class of per-
sons that has a mtgority controlling interest in tiie 
business; 
"(B) employs a substantial number of such persons; 
or 
"(C) meets such other criteria as the Secretary may 
establish, 
"(f) COORDINATION WITH OTHER FEDERAL AGENCIES.—The Sec-
retary shall consult with the Secretary of Labor, the Secretary 
of Health and Human Services, the Secretary of Commerce, the 
Administrator of the Small Business Administration, and such other 
Federal agencies as the Secretary determines are necessary to 
carry out this section. 
"(g) REGULATIONS.—Not later than 180 days after the date 
of enactment of Uie National Affordable Housing Act Amendments 
of 1992, the Secretary shall promulgate regulations to implement 
this section.". 
PUBLIC LAW 102-550—OCT. 28,1992 
106 STAT. 3881 
SBC. 9M. STUDY OF THE EFFECTIVBNESS OF SECTION S OF THE HOUS- 12 U
S
C 1701u 
ING AND UBBAN D
E
V
E
L
O
P
B
I
E
N
T A
C
T (»'1968. 
note. 
(a) IN GENERAL.—The Secretary of Housing and Urban Develop- Reports. 
ment shall submit to the Congress, not later than 1 year after 
tiie date of the enactment of this Act, a report describing— 
(1) the Secretary's efforts to enforce section 3 of 
the Housing 
and Urban Development Act of 1968; 
(2) tiie barriers to full implementation of section 3 of the 
Housing and Urban Development Act of 1968; 
(3) the anticipated costs and benefits of fiill implementation 
of section 3 of tiie Housing and Urban Development Act of 
1968; and 
(4) recommendations for legislative changes to enhance 
the effectiveness of section 3 of the Housing and Urban Develop-
ment Act of 1968. 
(b) CONTENTS.— 
(1) ENFORCEMENT.—^The description under subsection (aXD 
of the Secretary's enforcement efforts shall include, at a 
TfiiniinuTW— 
(A) a discussion of how responsibility for implementing 
section 3 of the Housing and Urban Development Act of 
1968 is allocated within the Department of Housing and 
Urban Development; 
(B) a discussion of the status of existing regulations 
implementing such section 3; 
(C) a discussion of ongoing efforts to enforce current 
regulations; 
(D) a list of the programs under the responsibility 
of the Secretary with respect to which the Secretary is 
enforcing section 3; and 
(E) a separate description of the activities carried out 
under section 3 with respect to each of these programs. 
(2) IMPEDIMENTS.—^The discussion under subsection (aX2) 
of the external impediments to effective enforcement of section 
3 of the Housing and Urban Development Act of 1968 shall 
include, at a minimum, a discussion of— 
(A) any lack of necessary training for targeted employ-
ees and tedinical assistance to target^ businesses; 
(B) any barriers created by Federal, State, or local 
procurement regulations or other laws; 
(C) any difficulties in coordination with labor unions; 
(D) any difficulties in coordination with other 
implicated Federal agencies; and 
(E) any lack of resources on the part of recipients 
of assistance who are responsible for carrying out section 
3 of the Housing and Urban Development Act of 1968. 
(c) CONSULTATION.—^In preparing the report under this sub-
section, the Secretary shall consult with the Secretary of Labor, 
the Secretary of Conmierce, the Secretary of Health and Human 
Services, the Administrator of the Small Business Administration, 
ot^er appropriate Federal officials, and recipients of Federal housing 
and community development assistance who are responsible for 
executing section 3 of the Housing and Urban Development Act 
of 1968. 
106 STAT. 3882 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 917. INDIAN HOUSING AUTHORITIEa 
Appropriation 
There is authorized to be appropriated $500,000 for fiscal year 
authorization. 
1993 ^^d $521,000 for fiscal year 1994 to a nonprofit organization 
under section 501(cX3) of the Internal Revenue Code of 1986 tiiat 
has been in existence since 1975 and that provides training, tech-
nical assistance, and information to Indiim housing authorities, 
Indian tribal governments, and other groups. These sums shall 
be used by such nonprofit organization to— 
(1) provide technical assistance and training to Indian hous-
ing authorities; 
(2) improve the administrative capacities of Indian housing 
authorities; and 
(3) provide for other activities designed to improve Indian 
housing conditions. 
SEC. 
918. 
STUDY 
REGARDING 
FORECLOSURE 
ALTERNATIVES. 
(a) IN GENERAL.—^The Secretary of Housing and Urban Develop-
ment shall conduct a study to review and analyze alternatives 
to foreclosure for homeowners whose principal residences are subject 
to federally-related mortgages (in connection with federally related 
mortgage loans, as such term is defined in section 3 of the Real 
Estate Settlement Procedures Act of 1974) under which the home-
owner is in default. In conducting the study, the Secretary— 
(1) may consult with any appropriate Federal agencies 
that make, insure, or guarantee morteage loans relating to 
1- to 4-family dwellings and with the Federal National Nfort-
gage Association, the Federal Home Loan Mortgage Corpora-
tion, the Government National Mortgage Association, and the 
Federal Agricultural Mortgage Corporation; and 
(2) shall review and assess the adequacy, with respect 
to providing alternatives to foreclosure, of— 
(A) the temporary mortgage assistance payments pro-
gram authorized under section 230 of the National Housing 
Act; 
(B) the authority of the Secretary to modify interest 
rates and other terms of mortgages transferred to the Sec-
retary under section 7(i) of the Department of Housing 
and Urban Development Act; and 
(C) any authority pursuant to Debt Collection Act of 
.. 
> 1982 to reduce interest rates on outstanding debt to the 
borrowing rate for the Treasury of the United States. 
The Secretary shall evaluate alternatives to foreclosure based on 
fairness of the procedures to the homeowner and reducing adverse 
effects on the mortgage lending system. 
(b) REPORT.—Not later than March 1, 1993, the Secretary shall 
submit a report to the Congress regarding the results of the study 
conducted under subsection (a). The report shall contain a detailed 
description and assessment of each alternative to foreclosure ana-
lyzed imder the study and a statement by the Secretary regarding 
the intent of the Secretary to use any authority available under 
the provisions referred to in subsection (aX2) to avoid foreclosure 
imder mortgages (and any reasons for not using such authority). 
The report may also contain any recommendations of the Secretiuy 
for administrative or legislative action to assist homeowners to 
avoid foreclosure and any loss of equity in their mortgaged homes 
that may result 
firom 
foreclosure. 
PUBLIC LAW 102-550—OCT. 28, 1992 
^66 STAT. 3883 
SEC. 919. BEGUIATIONS CLARIFYING THE TERM <VOt^4G FOR 
42 USC 3607 
OLDER PERSONS". 
^r=;=^S^ 
note. 
The Secretary of Housing and Urban Development shall, not 
later than 180 days after the date of the enactment of this Act, 
make rules defining what are "significant facilities and services 
especisdly designed to meet the physical or social needs of older 
persons" required under section 807(bX2) of the Fair Housing Act 
to meet the definition of the term "housing for older persons" 
in such section. 
SEC. 920. USE OF DOMESTnC PRODUCTS. 
42 USC 3546. 
(a) PROHIBITION AGAINST FRAUDULENT USE OF "MADE IN AMER-
ICA" LABELS.—^A person shsdl not intentionally affix a label bearing 
the inscription of "Made in America", or any inscription with that 
meaning, to any product sold in or shipped to the United States, 
if that product is not a domestic product. 
(b) REPORT.—^The Secretary of Housing and Urban Development 
and the Secretary of Agriculture shall each submit, before Janu-
ary 1, 1994, a report to the Congress on ps'ocurements of products 
that are not domestic products. 
(c) DEFINITIONS.—For the purposes of this section, the term 
"domestic product" means a product— 
(1) that is manufactured or produced in the United States; 
and 
(2) at least 50 percent of the cost of the articles, materials, 
or supplies of which are mined, produced, or manufactured 
in the United States. 
SEC. 921. IMPROVED COORDINATION OF UREAN POUCY. 
Title VII of the Housing and Urban Development Act of 1970 
(42 U.S.C. 4501 et seq.) is amended— 
(1) in section 702(d), by striking paragraph (8) and inserting ^2 use 4502. 
the following: 
"(8) increase coordination among Federal programs that 
seek to promote job opportimities and skills, decent and afford-
able housing, public safety, access to healUi care, educational 
opportunities, and fiscal soimdness for urban communities and 
their residents."; 
(2) in section 703(a)— 
42 USC 4503. 
(A) by striking "during February 1978, and during 
February of every even-numbered year thereafter," and 
inserting ", not later than June 1, 1993, and not later 
than the first day of June of every odd-numbered year 
thereafter,"; and 
(B) in paragraph (8), by striking "such" and all that 
follows through the end of the sentence and inserting "legis-
lative or administrative proposals— 
"(A) to promote coordination among Federal programs 
^
^ 
to assist urban areas; 
"(B) to enhance the fiscal capacity of fiscally distressed 
urban areas; 
"(C) to promote job opportunities in economically dis-
tressed urban areas and to enhance the job skills oi resi-
dents of such areas; 
"(D) to generate decent and affordable housing; 
"(E) to reduce racial^ tensions and to combat racial 
and ethnic violence in urbipi areas; 
ff' 
106 STAT. 3884 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(F) to combat urban drug abuse and drug-related 
crime and violence; 
"(G) to promote the delivery of health care to low-
income conmiunities in urban areas; 
"(H) to expand educational opportunities in urban 
areas; and 
"(I) to achieve the goals of the national urban policy."; 
and 
42 use 4503. 
(3) by adding at the end of section 703 the following new 
subsection: 
"(d) REFERRAL.—The National Urban Policy Report shall, when 
transmitted to Congress, be referred in the Senate to the Committee 
on Banking, Housing, and Urban Affairs, and in the House of 
Representatives to the Committee on Banking, Finance and Urban 
Affairs.". 
SEC. 922. PROHmrnON OF LUMP-SUM PAYMENTS. 
The Department of Housing and Urban Development Act (42 
U.S.C. 3531 et seq.) is amended by adding at the end the following 
new section: 
"PROHIBITION OF LUMP-SUM PAYMENTS 
42 use 3537c. 
"SEC. 14. In providing relocation assistance in connection with 
any program administered by the Department of Housing and 
Urban Development, the Secretanr may not make lump-siun pay-
ments to any displaced residential tenant, except where necessary 
to cover— 
"(1) moving expenses; 
"(2) a downpayment on the purchase of a replacement 
residence, incluoing a condominium unit or membership in 
a cooperative housing association; or 
"(3) any incidental expenses related to paragraph (1) or 
42 use 12714 
SEC. 923. ECONOMIC INDEPENDENCE. 
The Secretarv of Housing and Urban Development should 
immediately implement section 957 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12714). Other Federal 
agencies authorized to assist low-income families should take simi-
lar steps to encourage economic independence and the acciunulation 
ofassets. 
SEC. 924. ADMINISTRATIVE PROVISION. 
Subject to the availability of appropriations for this purpose, 
the Secretary of Housing and Urban Development shall cancel 
the indebtedness of the town of McLain, Mississippi, relating to 
the public facilities loan (Project No. MS 94-PFL39456). The town 
of McLain, Mississippi, is relieved of all liabilitv to the Government 
for the outstanding principal balance on such loan, for the amount 
of accrued interest on such loan, and for any other fees and charges 
payable in connection with such loan. 
42 use 3536. 
SEC. 925. PERFORMANCE GOALS. 
(a) PERFORMANCE GOALS FOR THE DEPARTMENT OF HOUSING 
A
N
D URBAN DEVELOPMENT.— 
(1) IN G
E
N
E
R
A
L
.
—
^
T
h
e Secretary of the Department of Hous-
ing and Urban Development (hereafter in this Act referred 
to as the "Secretarjr") may establish performance goals for 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3885 
the msgor programs of the Department of Housmg and Urban 
Development in order to measure progress towards meetmg 
the objectives of national housing policy. 
(2) FORM OF GOALS.—^The performance goals referred to 
in paragraph (1) shall be expressed in terms sufficient to meas-
ure progress. 
(3) REPORT.—^The Secretary shall include in the Secretary's 
annual report to the Congress a description of the progress 
made in attsdning the performance goeds for each program, 
citing the results achieved in each program for the previous 
year. 
(4) FAILURE TO MEET GOALS.—^If a performance standard 
or goal has not been met, the description under paragraph 
(3) shall include an explanation of why the goal was not met, 
propose plans for achieving the performance goal, and rec-
ommend any legislative or regulatory changes necessary for 
achievement of the goal. 
(b) PERFORMANCE GOALS FOR THE FARMERS HOME ADMINISTRA- 42 use i47i 
TION.— 
"°^-
(1) IN GENERAL.—^The Secretary of Agriculture may estab-
lish performance goals for the mtgor housing programs of the 
Farmers Home Administration in order to measure progress 
towards meeting the objectives of national housing policy. 
(2) FORM OF GOALS.—^The performance g0£ds referred to 
in paragraph (1) shall be expressed in terms sufficient to meas-
ure progress. 
(3) REPORT.—^The Secretarv of Agriculture shall prepare 
a report to the Congress on tne progress made in attaining 
the performance goals for each program, citing the actual 
results achieved in such program for the previous year. 
(4) FAILURE TO MEET GOALS.—^If a performance standcurd 
or goal has not been met, the report under paragraph (3) 
shall include an explanation of why the goal was not met, 
propose plans for achieving the performance goal, and rec-
ommend any legislative or regulatory changes necessary for 
achievement of the goal. 
SEC. 928. R
E
G
U
L
A
T
I
O
N OF CONSULTANTS. 
Section 13(fXl) of the Department of Housing and Urban Devel-
opment Act (42 U.S.C. 3537b(f)(l)) is amended by striking "author-
ity", "State", and "local government", and by a:ddlng immediately 
before the period at the end the following: ", but does not include 
a State or local government, or the officer or employee of a State 
or local government or housing finance agency thereof who is 
engaged in the official business of the State or local government". 
SEC. 927. CLARIFICATION O
N UnUTY A
L
L
O
W
A
N
C
E
a 
42 U
S
C 8624 
(a) EUGIBIUTY.—Tenants who— 
^°^' 
(1) are responsible for making out-of-pocket payments for 
utility bills; and 
(2) receive energy assist£Uice through utility allowances 
that include energy costs under programs identified in sub-
section (c); 
shall not have their eligibility or benefits under other programs 
designed to assist low-income people wil^ increases in energy costs 
since 1978 (including but not limited to the Low-Income Home 
Energy Assistance Program) reduced or eliminated. 
106 STAT. 3886 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) 
EQUAL TREATMENT IN BENEFIT PROGRAMS.—Tenants 
described in subsection (a) shall be treated identically with otiier 
households eligible for such assistance, includinyg^ in the determina-
tion of the home energy costs for which they are individuidly respon-
sible and in the determination of their incomes. 
(c) APPLICABILITY.—^This section applies to programs under the 
United States Housing Act of 1937, the National Housing Act, 
section 101 of the Housing and Urban Development Act of 1965, 
section 202 of the Housing Act of 1959, and title V of the Housing 
Act of 1949. 
SEC. »28. FLOOD CONTROL RESTORATION ZONE. 
42 use 4014. 
Section 1307 of the National Flood Insurance Act of 1968 is 
amended by adding at the end the following new subsection: 
"(f) Notwithstanding any other provision of law, this subsection 
shall only applv in a commimity which has been determined by 
the Director of the Federal Emergency Management Agency^ to 
be in the process of restoring flood protection afforded by a flood 
protection system that had been previously accredited on a Flood 
Insurance Rate Map as providing 100-year frequency flood protec-
tion but no longer does so. Except as provided in mis subsection, 
in such a commimity, flood insurance shall be made available 
to those properties impacted by the disaccreditation of the flood 
protection system at premium rates that do not exceed those which 
would be applicable to any property located in an area of special 
flood hazard, the construction of which was started prior to the 
effective date of the initial Flood Insurance Rate Map published 
by the Director for the community in which such property is located. 
A revised Flood Insurance Rate Map shall be prepared for the 
commimity to delineate SLB Zone AR the areas of special flood 
hazard that result from the disaccreditetion of the flood protection 
system. A community will be considered to be in the process of 
restoration if— 
"(1) the flood protection system has been deemed restorable 
by a Federal agency in consultetion with Uie local project 
sponsor; 
"(2) a minimum level of flood protection is still provided 
to the community by the disaccredited system; and 
''(3) restoration of the flood protection system is scheduled 
to occur within a designated time period and in accordance 
with a progress plan negotiated between the community and 
the Federal Emergency Management Agency. 
Communities that the Director of the Federal Emergency Manage-
ment Agency determines to meet the criteria set forth in paragraphs 
(1) and (2) as of January 1, 1992, shall not be subject to revised 
Flood Insurance Rate Maps that contravene the intent of this 
subsection. Such communities shall remain eligible for C zone rates 
for properties located in zone AR for any policy written prior to 
promulgation of final regulations for this section. Floodplain 
management criteria for such communities shall not require the 
elevation of improvements to existing structures and shall not 
exceed 3 feet above existing grade for new construction, provided 
the base flood elevation based on the disaccredited flooa control 
system does not exceed five feet above existing ^ade, or the remain-
ing new construction in such communities is limited to infill sites, 
rehabilitetion of existing structures, or redevelopment of previously 
developed areas. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3887 
Appropriation 
authorization. 
The Director of the Federal Emergency Management Agency shall Regulations. 
develop and promulgate regulations to implement this subsection, 
including minimum floodplain management criteria, within 24 
months after the date of enactment of this subsection.". 
SEC. 929. SALARIES AND EXPENSES. 
Section 7 of the Department of Housing and Urban Develop-
ment Act (42 U.S.C. 3535) is amended by inserting at the end 
the following new subsection: 
"(sXD Notwithstanding any other provision of law, there is 
authorized to be appropriated for salaries and expenses to carry 
out the purposes of this section $988,000,000 for fiscal year 1993 
and $1,029,496,000 for fiscal year 1994. 
''(2) Of the amoimts authorized to be appropriated by this 
section, $96,000,000 shall be avedlable for each of the fiscal years 
1993 and 1994, which amounts shall be used to provide staff in 
regional, field, or zone offices of the Department of Housing and 
Urban Development to review, process, approve, and service applica-
tions for mortgage insurance under title II of the National Housing 
Act for housing consisting of 5 or more dwelUng units. 
''(3) Of the amounts authorized to be appropriated to carry 
out this section, not less than $5,000,000 of such amount shall 
be available for each fiscal year exclusively for the purposes of 
provicting ongoing training and capacity building for Department 
personnel.**. 
SEC. 930. THE NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOP-
MENT PROGRAM. 
(a) PURPOSE.—^The purposes of this section are— 
(1) to empower the local community by investing in its 
human capital through a private-public partnership to rebuild 
urban emd rural communities through schools and other 
community organizations, including public housing commu-
nities; and 
(2) to ensure that by December 1997, the Cities in Schools 
Program, through the National Center for Partnership Develop-
ment, will have developed the capacity to reach 500,000 at-
risk youth and their families through community-wide 
programs that channel existing commimity resources to provide 
personal, coordinated and accountable support. 
(b) GRANTS TO STRENGTHEN THE NATIONAL CITIES IN SCHOOLS 
PROGRAM.—^The Secretary of Housing and Urban Development shall 
make grants to expand the National Cities in Schools Program 
and operations of the National Center for Partnership Development 
to— 
(1) develop, estabUsh, and support projects to strengthen 
local community dropout prevention programs in elementary 
and secondary schools; 
(2) 
train 
community 
leaders 
responsible 
for 
the 
implementation of local community Cities in Schools dropout 
prevention programs; and 
(3) disseminate to, and support replication by, States and 
communities of effective dropout prevention strategies. 
(c) AUTHORIZATION.—^There are authorized to be appropriated Appropriation 
to carry out this section $10,000,000 for fiscal year 1993 and authorization. 
$10,420,000 for fiscal year 1994. 
106 STAT. 3888 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 1817. 
12 u s e 1834a. 
12 use 1834a. 
SEC. 931. BANK ENTERPRISE ACT OF 1991 AND RELATED PROVISIONS. 
(a) ASSESSMENT RATE FOR LIFELINE ACCOUNT DEPOSITS.—Sec-
tion 7(bX10) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(bX10)) (as added by section 232(b)(2) of the Bank Enterprise 
Act of 1991) is amended by striking "at the assessment rate of 
V2 the m£iximum rate." and inserting "at an assessment rate to 
be determined by the Corporation by regulation. Such assessment 
rate may not be less than V2 the maximum assessment rate.". 
(b) ASSESSMENT PROCEDURE.—Section 7(bX2XAXiiiXI) of the 
Federal Deposit Insurance Act (12 U.S.C. 1917(bX2XAXiiiXI)) (as 
added by section 232(b)(3XC) of the Bank Enterprise Act of 1991) 
is amended to read as follows: 
"(I) the assessment rate determined by the 
Corporation pursuant to paragraph (10) with 
respect to such semiannual period; and". 
(c) QUALIFYING ACTIVITIES FOR ASSESSMENT CREDITS.—Section 
233(aX2) of the Bank Enterprise Act of 1991 (12 U.S.C. 1934a(aX2)) 
is amended to read as follows: 
"(2) QUALIFYING ACTIVITIES.—An insured depository institu-
tion shall be eligible for any community enterprise assessment 
credit for any semiannual period for— 
"(A) the amount, during such period, of new origina-
tions of qualified loans and other financial assistance pro-
vided for low- and moderate-income persons in distressed 
communities, or enterprises integrally involved with such 
neighborhoods, which the Board determines are qualified 
to be taken into account for purposes of this subsection; 
and 
"(B) the amount, during such period, of deposits 
accepted from persons domiciled in the distressed commu-
nity, at any office of the institution (including any branch) 
located in any qualified distressed community, and new 
originations of any loans and other financial assistance 
made within that community, except that in no case shall 
the credit for deposits at any institution or branch exceed 
the credit for loans and other financial assistance by the 
bank or branch in the distressed commimity.". 
(d) AMOUNT OF ASSESSMENT CREDIT.—Section 233(aX3) of the 
Bank Enterprise Act of 1991 (12 U.S.C. 1934a(aX3)) is amended 
to read as follows: 
"(3) AMOUNT OF ASSESSMENT CREDIT.—The amount of any 
community enterprise assessment credit available under section 
7(dX4) of the Federal Deposit Insurance Act for any insured 
depository institution, or a qualified portion thereof, shall be 
the amount which is equal to 5 percent, in the case of an 
institution which does not meet the community development 
organization requirements under section 234, and 15 percent, 
in the case of an institution, or a qualified portion thereof, 
which meets such requirements (or any percentage designated 
under paragraph (5)) of— 
"(A) for the first full semiannual period in which 
commimity enterprise assessment credits are available, the 
sum of— 
"(i) the amounts of assets described in paragraph 
(2)(A); and 
"(ii) the amounts of deposits, loans, and other 
financial assistance described in paragraph (2XB); and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3889 
"(B) for any subsequent semiannual period, the sum 
of— 
"(i) anv increase during such period in the amount 
of assets described in paragraph (2XA) that has been 
deemed eligible for crecut by the Board; and 
"(ii) any increase during such period in the 
amounts of deoosits, loans, and other miancial assist-
ance described in paragraph (2XB) that has been 
deemed eligible for credit by the Board.", 
(e) EuGmiLiTY REQUIREMENTS FOR QUALIFIED DISTRESSED 
COMMUNITIES.—Section 233(bX4) of the Bank Enterprise Act of 
1991 (12 U.S.C. 1934a(bX4)) is amended to read as foUows: 
12 use I834a. 
"(4) EUGIBILITY REQUIREMENTS.—For purposes of this sub-
section, an area meets the requirements ot this paragraph 
if the following criteria are met: 
"(A) At least 30 percent of the residents residing in 
the area have incomes which are less than the national 
poverty level. 
''(B) The unemployment rate for the area is IVb times 
greater than the national average (as determined by the 
Bureau of Labor Statistics' most recent figures). 
"(C) Such additional eUgibiUty requirements as the 
Board may, in its discretion, deem necessary to carry out 
the provisions of this subtitle.". 
SEC. 9S2. DISCLOSURES UNDER THE HOME MORTGAGE DISCLOSURE 
ACT OF 1975. 
(a) IN GENERAL.—Section 304 of the Home Mortgage Disclosure 
Act of 1975 (12 U.S.C. 2803) is amended by adding at the end 
the following new subsections: 
*
*
(
j
) LOAN APPUCATION REGISTER INFORMATION.— 
"(1) IN GENERAL.—^In addition to the information required Regulations. 
to be disclosed under subsections (a) and (b), any depository 
institution which is required to make disclosures under this 
section shall make available to the public, upon request, loan 
application register information (as defined oy the Board by 
regulation) in the form required under regulations prescribed 
by the Board. 
"(2) FORMAT OF DISCLOSURE.— 
"(A) UNEDITED FORMAT.—Subject to subparagraph (B), 
the loan application register information described in para-
graph (1) may be disclosed by a depository institution with-
out editing or compilation and m the format in which 
such information is maintained by the institution. 
"(B) PROTECTION OF APPUCANT'S PRIVACY INTEREST.— 
The Board shall require, by regulation, such deletions as Regulations. 
the Board may determine to be appropriate to protect— 
"(i) any privacy interest of any applicant, mcluding 
the deletion of the applicant's name and identification 
number, the date or the application, and the date of 
any determination by the institution with respect to 
such application; and 
"(ii) a depository institution from liability under 
any Federal or State privacy law. 
"(C) CENSUS TRACT FORMAT ENCOURAGED.—It is the 
sense of the Congress that a depository institution should 
provide loan register information under this section in a 
106 STAT. 3890 
PUBLIC LAW 102-550—OCT. 28, 1992 
r . 
format based on the census tract in which the property 
is located. 
"(3) CHANGE OF FORM NOT REQUIRED.—A depository institu-
tion meets the disclosure requirement of paragraph (1) if the 
institution provides the information re<)uired under such para-
graph in the form in which the institution maintains such 
information. 
"(4) REASONABLE CHARGE FOR INFORMATION.—Any deposi-
tory institution which provides information under this sub-
^ 
section may impose a reasonable fee for any cost incurred 
in reproducing such information. 
^(5) TIME OF DISCLOSURE.—The disclosure of the loan 
application register information described in paragraph (1) for 
any year pursuant to a request imder paragraph (1) shall 
be made— 
"(A) in the case of a request made on or before March 
1 of the succeeding year, before April 1 of the succeeding 
year; and 
"(B) in the case of a request made after March 1 
of the succeeding year, before the end of the 30-day period 
beginning on the date the request is made. 
"(6) RETENTION OF INFORMATION.—Notwithstanding sub-
section (c), the loan application register information described 
in paragraph (1) for any year shall be maintained and made 
available, upon request, for 3 years after the close of the 1st 
year during which such information is required to be main-
tained and made available. 
"(7) MINIMIZING COMPLIANCE COSTS.—In prescribing regula-
tions under this subsection, the Board shall make every effort 
to minimize the costs incurred by a depository institution in 
complying with this subsection and such regulations. 
? 
"(k) DISCLOSURE OF STATEMENTS BY DEPOSITORY INSTITU-
TIONS.— 
"(1) IN GENERAL.—In accordance with procedures estab-
lished by the Board pursuant to this section, any depository 
institution required to make disclosures under this section— 
"(A) snail make a disclosure statement available, upon 
request, to the public no later than 3 business days after 
the institution receives the statement from the Federal 
Financial Institutions Examination Council; and 
"(B) may make such statement available on a floppy 
disc which may be used with a personal computer or in 
. ^ any other media which is not prohibited imder regulations 
prescribed by the Board. 
"(2) NOTICE THAT DATA IS SUBJECT TO CORRECTION AFTER 
FINAL REVIEW.—Any disclosure statement provided pursuant 
to paragraph (1) shall be accompanied by a clear and conspicu-
ous notice that the statement is subject to final review and 
revision, if necessary. 
"(3) REASONABLE CHARGE FOR INFORMATION.—^Any deposi-
tory institution which provides a disclosure statement pursuant 
to paragraph (1) may impose a reasonable fee for any cost 
. incurred in providing or reproducing such statement. 
"(1) PROMPT DISCLOSURES.— 
"(1) IN GENERAL.—^Any disclosure of information pursuant 
to this section or section 310 shall be made as promptly as 
possible. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3891 
"(2) MAXIMUM DISCLOSURE PERIOD.— 
"(A) 6- A
N
D 9
-
M
O
N
T
H M
A
X
I
M
U
M PERIODS.—Except as 
provided in subsections (jX5) and (kXD and regulations 
prescribed by the Board and subject to subparagraph (B), 
any information required to be disclosed for any year begin-
ning after December 31,1992, under— 
"(i) this section shall be made available to the 
public before September 1 of the succeeding year; and 
'^(ii) section 310 shall be made available to the 
public before December 1 of the succeeding year. 
"(B) SHORTER PERIODS ENCOURAGED AFTER 1994.—With 
respect to disclosures of information under this section 
or section 310 for any year beginning after December 31, 
1993, every effort shall be made— 
"(i) to make information disclosed under this sec-
tion available to the public before July 1 of the succeed-
ing year; and 
"(u) to make information required to be disclosed 
imder section 310 available to the public before 
September 1 of the succeeding year. 
"(3) IMPROVED PROCEDURE.—The Federal Financial Institu-
tions Examination Council shall make such changes in the 
system established pursuant to subsection (0 as may be nec-
essary to carry out the requirements of this subsection.". 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 304(c) 
of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(c)) 
is amended by inserting ", other than loan application register 
information under subsection (j)," after "under this section". 
(c) EFFECTIVE DATE.—^The amendments made by subsections 12 use 2803 
(a) and (b) shall apply with respect to information disclosed under "°^' 
section 304 of the Home Mortgage Disclosure Act of 1975 for any 
year which ends after the date of 
tiie 
enactment of this Act. 
SEC. 933. PROHIBITION ON USE OF '*RULE OF IffiT IN CONNECTION 15 USC 1615. 
WITH MORTGAGE REFINANCINGS AND OTHER CONSUMER 
LOANS. 
(a) PROMPT REFUND OF UNEARNED INTEREST REQUIRED.— 
(1) IN GENERAL.—^If a consumer prepays in 
ftdl 
the financed 
amount under any consumer credit transaction, the creditor 
shall promptly refund any unearned portion of the interest 
charge to the consumer. 
(2) EXCEPTION FOR REFUND OF DE MINIMUS AMOUNT.—NO 
refund shall be required under paragraph (1) with respect 
to the prepayment of any consumer credit transaction if the 
total amount of the refund would be less than $1. 
(3) APPUCABILITY TO REFINANCED TRANSACTIONS AND 
ACCELERATION BY THE CREDITOR.—This subsection shall apply 
with respect to any prepa3rment of a consumer credit trans-
action described in paragraph (1) without regard to the manner 
or the reason for the prepayment, including— 
(A) any prepayment made in connection with the 
refinancing, consoUdation, or restructuring of the trans-
action; and 
(B) any prepayment made as a result of the accelera-
tion of the obligation to repay the amount due with respect 
to the transaction. 
106 STAT. 3892 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) USE OF *TIULE OF 78'S" PROHIBITED.—For the purpose of 
calculating any refund of interest required under subsection (a) 
for any precomputed consumer credit transaction of a term exceed-
ing 61 months which is consummated after September 30, 1993, 
the creditor shall compute the refund based on a method which 
is at least as favorable to the consumer as the actuarial method. 
(c) STATEMENT OF PREPAYMENT AMOUNT.— 
(1) IN GENERAL.—^Before the end of the 5-day period begin-
ning on the date an oral or written request is received by 
a creditor from a consumer for the disclosure of the amount 
due on any precomputed consumer credit account, the creditor 
or assignee shall provide the consumer with a statement of— 
(A) the £unount necessary to prepay the account in 
full; and 
(B) if the amount disclosed pursuant to subparagraph 
(A) includes an amount which is required to be refmided 
under this section with respect to such prepayment, the 
amount of such refund. 
(2) WRITTEN STATEMENT REQUIRED IF REQUEST IS IN WRIT-
ING.—^If the customer's request is in writing, the statement 
under paragraph (1) shall be in writing. 
(3) 1 F
R
E
E A
N
N
U
A
L S
T
A
T
E
M
E
N
T
.
—
A consumer shall be enti-
tled to obtain 1 statement under paragraph (1) each year with-
out charge. 
(4) 
ADDITIONAL STATEMENTS SUBJECT TO REASONABLE 
FEES.—^Any creditor may impose a reasonable fee to cover the 
cost of providing any statement under paragraph (1) to any 
consumer in addition to the 1 free annual statement required 
under paragraph (3) if the amount of the charge for such 
additional statement is disclosed to the consumer before fur-
nishing such statement. 
(d) DEFiNrnONS.—^For the purpose of this section— 
(1) ACTUARIAL METHOD.—The term "actuarial method" 
means the method of allocating payments made on a debt 
between the amount financed and uie finance charge pursuant 
to which a pa3anent is applied first to the accumulated finance 
charge and any remainder is subtracted 
firom, 
or any deficient^ 
is added to, the unpaid balance of the amount financed. 
(2) CONSUMER, CREDIT.—^The terms "consumer" and "credi-
tor" have the meanings given to such terms in section 103 
of the Consumer Credit Protection Act. 
(3) CREDITOR.—The term "creditor"— 
(A) has the meaning given to such term in section 
103 of the Consumer Cremt Protection Act; and 
(B) includes any assignee of any creditor with respect 
to credit extended in connection witii any consumer ci^dit 
transaction and any subsequent assignee with respect to 
such credit. 
Subtitle B—^Bank Regulatory Clarification 
Provisions 
SEC. 951. AMENDMENT RELATING TO ESTIMATES OF REAL ESTATE 
SETTLEMENT COSTS. 
Section 5(d) of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2604(d)) is amended by striking the last sentence 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3893 
and inserting "Such booklet shall be provided by delivering it or 
1
>lacing it in the mail not later than 3 business days after the 
ender receives the appUcation, but no booklet need be provided 
if the lender denies the application for credit before the end of 
the 3-day period.". 
SEC. 962. ADJUSTABLE RATE MORTGAGE CAPa 
Section 1204(dX2) of the Competitive Ek)uality Banking Act 
of 1987 (12 U.S.C. 3806(dX2)) is amended by striking "any loan" 
and inserting "any consumer loan". 
SEC. 968. MODIFYING SEPARATE CAPITALIZATION RULE FOR SAVINGS 
ASSOCIATIONS' SUBSIDIARIES ENGAGED IN ACnVITIES 
NOT PERMISSIBLE FOR NATIONAL BANKS. 
(a) IN GENERAL.—Section 5(tX5XD) of the Home Owners' Loan 
Act (12 U.S.C. 1464(tX5XD)) is amended by redesignating clause 
(iii) as clause (ix) and by inserting after clause (ii) the following 
new clauses: 
"(iii) AGENCY DISCRETION TO PRESCRIBE GREATER 
PERCENTAGE.—Subject to clauses (iv), (v), and (vi), the 
Director may prescribe by order, with respect to a 
particular qualified savings association, an applicable 
percentage greater than that provided in clause (ii) 
if the Director determines, in the Director's sole discre-
tion, that the use of the greater percentage, imder 
the circiunstances— 
"(I) would not constitute an unsafe or unsound 
practice; 
"(II) would not incre£ise the risk to the affected 
deposit insurance fund; and 
"(III) would not be likely to result in the 
association's being in an unsafe or unsound condi-
tion, 
"(iv) SUBSTANTIAL COMPLIANCE W
I
T
H APPROVED 
CAPITAL PLAN.—In the case of a savings association 
which is subject to a plan submitted under paragraph 
(7XD) of this subsection or an order issued under this 
subsection, a directive issued or plan approved under 
subsection (s), or a capital restoration plan approved 
or order issued under section 38 or 39 of the Federal 
Deposit Insurance Act, an order issued under clause 
(iii) with respect to the association shall be effective 
only so long as the association is in substantial compU-
ance with such plan, directive, or order. 
"(v) LIMITATION ON INVESTMENTS TAKEN INTO 
ACCOUNT.—^In prescribing the amount by which an 
applicable percentage under clause (iii) mav exceed 
the applicable percentage under clause (ii) with respect 
to a particular qualified savings association, the Direc-
tor may take into account only the sum of— 
"(I) the association's investments in, and 
extensions of credit to, the subsidiary that were 
made on or before April 12,1989; and 
"(II) the association's investments in, and 
extensions of credit to, the subsidiary that were 
made after April 12, 1989, and were necessary 
to complete projects initiated before April 12,1989. 
106 STAT. 3894 
PUBLIC LAW 102-550—OCT. 28, 1992 
'X\i) LIMIT.—^The applicable percentage limit 
allowed by the Director in an order under clause (iii) 
shall not exceed the following limits: 
Tor the followinf period: 
The limit is: 
Prior to July 1, 1994 
75 percent 
July 1,1994 through June 30,1995 
60 percent 
July 1, 1995 through June 30,1996 
40 percent 
After June 30,1996 
0 percent 
"(vii) 
CRITICALLY 
UNDERCAPITALIZED msTiru-
T
I
O
N
.
—
^
I
n the case of a savings associat oii that 
becomes critically undercapitalized (as define! in sec-
tion 38 of the Federal Deposit Insurance Act) VM deter-
mined imder this subparagraph without tipplying 
clause (iii), clauses (iii) through (v) shall be applied 
by substituting 'Corporation' for IDirector* eac'i place 
such term appears. 
"(viii) QUAUFIED SAVINGS ASSOCIATION DEFINED.— 
For purposes of clause (iii), the term 'qualified savings 
association' means an eligible savings associatian (as 
defined in paragraph (3)tB)) which is subject to this 
paragraph solely because of the real estate investments 
or other real estate activities of the association's 
subsidiary, and— 
"(I) is adequately capitalized (as defined in 
/ 
section 38 of the Federal Deposit Insurance Act); 
/ 
°' 
"(11) is in compliance with an approved capital 
restoration plan meeting the requirements of sec-
tion 38 of the Federid Deposit Insurance Act, and 
is not critically undercapitalized (as defined in 
such section).", 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Clause (ix) of 
section 5(tX5XD) of the Home Owners' Loan Act (12 U.S.C. 
1464(tX5XD)) (as so redesignated by subsection (a) of this section) 
is amended by inserting "or prescribed under clause (iii)" after 
"clause (ii)". 
SEC. 964. REAL ESTATE APPRAISAL AMENDMENT. 
Section 1112 of the Financial Institution Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 3341) is amended— 
(1) by striking "Each Federid financial institutions" and 
inserting "(a) IN GENERAL.—^Each Federal financial institu-
tions"; and 
(2) by adding at the end the following new subsections: 
"(b) TilRESHOLD LEVEL.—^Each Federal financial institutions 
regulatory agency and the Resolution Trust Corporation may estab-
lish a threshold level at or below which a certified or ucensed 
appraiser is not required to perform appraisals in connection with 
f^erally related transactions, if such agency determines in writing 
that such threshold level does not represent a threat to the safety 
and soundness of 
financial 
institutions. 
"(c) GAO STUDY OF APPRAISALS IN CONNECTION WITH REAL 
ESTATE RELATED FINANCIAL TRANSACTIONS BELOW THE THRESHOLD 
LEVEL.— 
"(1) STUDY REQUIRED.—At the end of the 18-month period, 
and the end of the 36-month period, beginning on the date 
of the enactment of this subsection, the Comptroller General 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3895 
of the United States shall conduct a study on the adequacy 
and quality of appraisals or evaliiations conducted in connection 
with real estate related financial transactions below the thresh-
old level estabUshed under subsection (b), taking into account— 
"(A) the cost to any financial institution involved in 
any such transaction; 
"(B) the possibility of losses to the Bank Insurance 
Fund, the Savings Association Insurance Fund, or the 
National Credit Union Share Insurance Fund; 
"(C) the cost to any customer involved in any such 
transaction; and 
"(D) the effect on low-income housing. 
"(2) REPORTS TO CONGRESS AND THE APPROPRIATE FEDERAL 
FINANCIAL 
INSTITUTIONS 
REGULATORY 
AGENCIES.—UPON 
completing each of the studies required under paragraph (1), 
the Comptroller General shall submit a report on the Comptrol-
ler General's findings and conclusions with respect to such 
study to the Federal financial institutions regulatory agencies, 
the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives, and the Committee on Bcuiking, 
Housing, and Urban Affairs of the Senate, together with such 
reconmiendations for legislative or administrative action as the 
Comptroller General determines to be appropriate.". 
SEC. 955. INSIDER LENDING. 
(a) AUTHORITY TO MAKE EXCEPTIONS TO DEFINITION OF EXTEN-
SION O
F CREDIT.—Section 22(hX9XD) of the Federal Reserve Act 
(12 U.S.C. 375b(hX9XD)) is amended— 
(1) bv striking "(D) EXTENSION OF CREDIT.—A member 
bank" and inserting the following: 
"(D) EXTENSION OF CREDIT.— 
"(i) IN GENERAL.—A member bank"; and 
(2) by adding at the end the following new clause: 
"(ii) EXCEPTIONS.—The Board may, by regulation, 
make exceptions to clause (i) for transactions that the 
Board determines pose minimal risk.". 
(b) PRINCIPAL SHAREHOLDER DEFINED.—Section 22(hX9XF) of 
the Federal Reserve Act (12 U.S.C. 375b(hX9XF)) is amended— 
(1) by striking "shareholder* means any person" and insert-
ing "shareholder*— 
"(i) means any person"; 
(2) by striking the period at the end of clause (i) (as 
so redesignated by paragraph (1) of this subsection) and insert-
ing "; ancT; and 
(3) by adding at the end the following new clause: 
"(ii) does not include a company of which a member 
bank is a subsidiary.". 
SEC. »5e. CLARIFICATION OF COMPENSATION STANDARDS. 
Section 39 of the Federal Deposit Insurance Act (as added 
by section 132(a) of Federal Deposit Insurance Corporation Improve-
ment Act of 1991) (12 U.S.C. 1831s) is amended— 
(1) by striking subsection (d) and inserting the following 
new subsection: 
"(d) STANDARDS TO BE PRESCRIBED BY REGULATION.— 
"(1) IN GENERAL.—Standards under subsections (a), (b), 
and (c) shall be prescribed by regulation. Such regulations 
may not prescribe standards that set a specific level or range 
59-194 O—93 
9 : QL 3 (Pt. 5) 
106 STAT. 3896 
PUBLIC LAW 102-550—OCT. 28, 1992 
of compensation for directors, officers, or employees of insured 
depository institutions. 
"(2) APPLICABILITY OF OTHER LAWS.—Paragraph (1) shall 
not affect the authority of any appropriate Federal banking 
agency to restrict the level of compensation, including golden 
parachute pajnnents (as defined in section 18(kX4)), paid to 
any director, officer, or employee of an insured depository 
institution under any other provision of law. 
"(3) SENIOR EXECUTIVE OFFICERS AT UNDERCAPITALIZED 
INSTITUTIONS.—Paragraph (1) shall not affect the authority of 
any appropriate Federal banking agency to restrict compensa-
tion paid to any senior executive officer of an undercapitalized 
insured depository institution pursuant to section 38. 
"(4) SAFETY AND SOUNDNESS OR ENFORCEMENT ACTIONS.— 
Paragraph (1) shall not be construed as affecting the authority 
of any appropriate Federal banking agency tinder any provision 
of this Act other than this section, or imder any other provision 
of law, to prescribe a specific level or range of compensation 
for any director, officer, or employee of an insured oepository 
institution— 
"(A) to preserve the safety and soundness of the institu-
tion; or 
"(B) in connection with any action under section 8 
or any order issued by the agency, any agreement between 
the agency and the institution, or any condition imposed 
by the agency in connection with the agency's approval 
of an application or other request by the institution, which 
is enforceable under section 8."; and 
(2) in subsection (eXlXA), by striking "(a), (b), or (c)" and 
inserting "(a) or (b)". 
SEC. 
ft57. 
TRUTH IN SAVINGS ACT AMENDMENTS. 
(a) ON-PREMISES DISPLAYS.—Section 263 of the Truth in Sav-
ings Act (12 U.S.C. 4302) is amended— 
(1) in subsection (a), by striking "subsection (b)" and insert-
ing "subsections (b) and (c)"; 
(2) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and 
(3) by inserting after subsection (b) the following new sub-
section: 
"(c) DISCLOSURE REQUIRED FOR ON-PREMISES DISPLAYS.— 
"(1) IN GENERAL.—^The disclosure requirements contained 
in this section shall not apply to any sign (including a rate 
board) disclosing a rate or rates of interest which is displayed 
on the premises of the depository institution if such sign 
contains— 
"(A) the accompanying annual percentage yield; and 
"(B) a statement that the consumer should request 
further information from an employee of the depository 
institution concerning the fees and terms applicable to 
the advertised accoimt 
"(2) DEFINITION.—For purposes of paragraph (1), a sign 
shall only be considered to be displayed on the premises of 
a depository institution if the sign is designed to be viewed 
only from the interior of the premises of the depository institu-
tion.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3897 
(b) EFFECTIVE DATE OF REGULATIONS.—Section 269(aX2) of the 
Truth in Savings Act (12 U.S.C. 4308(aX2)) is amended by striking 
"6 months" and inserting "9 months'*. 
TITLE 
X—RESroENTIAL 
LEAD-BASED 
PAINT HAZARD REDUCTION ACT OF 
1992 
Residential 
Lead-Based 
Paint Hazard 
Reduction Act of 
1992. 
SEC. 1001. SHORT TITLE. 
This title may be cited as the "Residential Lead-Based Paint 
Hazard Reduction Act of 1992". 
SEC. 1002. FINDINGS. 
The Congress finds that— 
(1) low-level lead poisoning is widespread among American 
children, afflicting as many as 3,000,000 children under age 
6, with minority and low-income communities disproportion-
ately affected; 
(2) at low levels, lead poisoning in children causes intel-
ligence quotient deficiencies, reading and learning disabilities, 
impaired hearing, reduced attention span, hyperactivity, and 
benavior problems; 
(3) pre-1980 American housing stock contains more than 
3,000,000 tons of lead in the form of lead-based paint, with 
the vast majority of homes built before 1950 containing substan-
tial amounts of lead-based paint; 
(4) the ingestion of household dust containing lead from 
deteriorating or abraded lead-based paint is the most common 
cause of lead poisoning in children; 
(5) the health and development of children living in as 
many as 3,800,000 American homes is endangered by chipping 
or peeling lead paint, or excessive amounts of lead-contami-
nated dust in their homes; 
(6) the danger posed by lead-based psdnt hazards can be 
reduced by abating lead-based paint or by taking interim meas-
ures to prevent paint deterioration and limit children's exposure 
to lead dust and chips; 
(7) despite the enactment of laws in the early 1970's requir-
ing the Federal Government to eliminate as far as practicable 
lead-based paint hazards in federally owned, assisted, and 
insured housing, the Federcd response to this national crisis 
remains severelv limited; and 
(8) the Federal Government must take a leadership role 
in building the infrastructure—^including an informed public. 
State and local delivery systems, certifi^ inspectors, contrac-
tors, and laboratories, trained workers, and available financing 
and insurance—necessary to ensure that the national goal of 
eliminating lead-based paint hazards in housing can be 
achieved as expeditiously as possible. 
SEC. 1003. PURPOSES. 
The purposes of this Act are— 
(1) to develop a national strategy to build the infrastructure 
necessary to eliminate lead-based paint hazards in all housing 
as expeditiously as possible; 
42 use 4851 
note. 
42 use 4851. 
42 use 4851a. 
106 STAT. 3898 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) to reorient the national approach to the presence of 
lead-based paint in housing to implement, on a priority basis, 
a broad program to evaluate and reduce lead-based pamt haz-
ards in the Nation's housing stock; 
(3) to encourage effective action to prevent childhood lead 
poisoning by establishing a workable framework for lead-based 
paint hazard evaluation and reduction and by ending the cur-
rent confusion over reasonable standards of care; 
(4) to ensure that the existence of lead-based paint hazards 
is taken into account in the development of Government hous-
ing policies and in the sale, rental, and renovation of homes 
and apartments; 
(5) to mobilize national resources expeditiously, through 
a partnership among all levels of government and me private 
sector, to develop the most promising, cost-effective methods 
for evaluating and reducing lead-based paint hazards; 
(6) to reduce the threat of chilonood lead poisoning in 
housing owned, assisted, or transferred by the Federal Govern-
ment; and 
(7) to educate the public concerning the hazards and 
sources of lead-based paint poisoning and steps to reduce and 
eliminate such hazards. 
42 use 4851b. 
SEC. 1004. DEFINITIONS. 
For the purposes of this Act, the following definitions shall 
apply: 
(1) ABATEMENT.—^The term "abatement" means any set of 
measures designed to permanently eliminate lead-based paint 
hazards in accordance with standards established by appro-
priate Federal agencies. Such term includes— 
(A) the removal of lead-bsised paint and lead-contami-
nated dust, the permanent containment or encapsulation 
of lead-based paint, the replacement of lead-painted sur-
faces or fixtures, and the removal or covering of lead 
contaminated soil; and 
(B) 
all 
preparation, 
cleanup, 
disposal, 
and 
postabatement clearance testing activities associated with 
such measures. 
(2) ACCESSIBLE SURFACE.—The term "accessible surface" 
means an interior or exterior surface painted with lead-based 
paint that is accessible for a yoimg cnild to mouth or chew. 
(3) CERTIFIED CONTRACTOR.—^The term "certified contrac-
tor" means— 
(A) a contractor, inspector, or supervisor who has com-
pleted a training program certified by the appropriate Fed-
eral agency and has met any other requirements for certifi-
cation or licensure established by such agency or who has 
been certified by any State through a program which has 
been foimd by such Federal agency to be at least as rigorous 
as the Federal certification program; and 
(B) workers or designers who have fully met training 
requirements established by the appropriate Federsu 
agency. 
(4) CONTRACT FOR THE PURCHASE AND SALE OF RESIDENTIAL 
R
E
A
L P
R
O
P
E
R
T
Y
.
—
^
T
h
e term "contract for the purchase and sale 
of residential real property" means any contract or agreement 
in. which one party agrees to purchase an interest in real 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3899 
property on which there is situated 1 or more residential dwell-
ings used or occupied, or intended to be used or occupied, 
in whole or in part, as the home or residence of 1 or more 
persons. 
(5) DETERIORATED PAINT.—The term "deteriorated paint" 
means any interior or exterior paint that is peeling, chipping, 
chalking or cracking or any paint located on an interior or 
exterior surface or fixture that is damaged or deteriorated. 
(6) EVALUATION.—^The term "evaluation" means risk assess-
ment, inspection, or risk assessment and inspection. 
(7) FEDERALLY ASSISTED HOUSING.—Tjie term "federally 
assisted housing" means residential dwellings receiving project-
based assistance under programs including— 
(A) section 221(dX3) or 236 of the National Housing 
Act; 
(B) section 1 of the Housing and Urban Development 
Act of 1965; 
(C) section 8 of the United States Housing Act of 
1937; or 
(D) sections 502(a), 504, 514, 515, 516 and 533 of 
the Housing Act of 1949. 
(8) FEDERALLY OWNED HOUSING.—The term "federally 
owned housing" means residential dwellings owned or managed 
by a Federal agency, or for which a Federal agency is a trustee 
or conservator. For the purpose of this paragraph, the term 
"Federal agencjr" includes the Department of Housing and 
Urban Development, the Farmers Home Administration, the 
Resolution Trust Corporation, the Federal Deposit Insurance 
Corporation, the General Services Administration, the Depart-
ment of Defense, the Department of Veterans Affairs, the 
Department of the Interior, the Department of Transportation, 
and any other Federal agency. 
(9) FEDERALLY SUPPORTED WORK.—The term "federally sup-
ported work" means any lead hazard evaluation or reduction 
activities conducted in federally owned or assisted housing or 
funded in whole or in part through any financial assistance 
program of the Department of Housing and Urban Develop-
ment, the Farmers Home Administration, or the Department 
of Veterans Affairs. 
(10) FRICTION SURFACE.—The term "friction surface" means 
an interior or exterior surface that is subject to abrasion or 
friction, including certain window, floor, and stair surfaces. 
(11) IMPACT SURFACE.—^The term "impact surface" means 
an interior or exterior surface that is subject to damage by 
repeated impacts, for example, certain parts of door frames. 
(12) INSPECTION.—^The term "inspection" means a surface-
by-surface investigation to determine the presence of lead-based 
paint as provided in section 302(c) of tne Lead-Based Paint 
Poisoning Prevention Act and the provision of a report explain-
ing the results of the investigation. 
(13) INTERIM CONTROLS.—The term "interim controls" 
means a set of measures designed to reduce temporarily human 
exposure or likely exposure to lead-based paint hazards, includ-
ing specialized cleaning, repairs, maintenance, painting, tem-
porary containment, ongoing monitoring of lead-based paint 
hazards or potential hazards, and the establishment and oper-
ation of management and resident education programs. 
106 STAT. 3900 
PUBLIC LAW 102-550—OCT. 28, 1992 
(14) LEAD-BASED PAINT.—The term lead-based 
paint" 
means paint or other surface coatings that contain lead in 
excess of limits established under section 302(c) of the Lead-
Based Paint Poisoning Prevention Act. 
(15) LEAD-BASED PAINT HAZARD.—The term "lead-based 
{>aint hazard" means any condition that causes exposure to 
ead from lead-contaminated dust, lead-contaminated soil, lead-
contaminated paint that is deteriorated or present in accessible 
surfaces, friction surfaces, or impact surfaces that would result 
in adverse human health effects as established by the appro-
priate Federal agency. 
(16) LEAD-CONTAMINATED DUST.—The term "lead-contami-
nated dust" means surface dust in residential dwellings that 
contains an area or mass concentration of lead in excess of 
levels determined by the appropriate Federal agency to pose 
a threat of adverse health effects in pregnant women or young 
children. 
(17) LEAD-CONTAMINATED SOIL.—^The term "lead-contami-
nated soil" means bare soil on residential real property that 
contains lead at or in excess of the levels determined to be 
hazardous to himian health by the appropriate Federal agency. 
(18) MORTGAGE LOAN.—^The term "mortgage loan" includes 
any loan (other than temporary financing such as a construction 
loan) that— 
(A) is secured by a first lien on any interest in residen-
tial real property; and 
(B) either— 
(i) is insured, guaranteed, made, or assisted by 
the Department of Housing and Urban Development, 
the Department of Veterans Affairs, or the Farmers 
Home Administration, or by any other agency of the 
Federal (lovemment; or 
(ii) is intended to be sold by each originating mort-
/ 
gage institution to any federally chartered secondary 
mortgage market institution. 
(19) 
ORIGINATING 
MORTGAGE 
INSTITUTION.—The 
term 
"originating mortgage institution" means a lender that provides 
mortgage loans. 
(20) 
PRIORITY HOUSING.—The term "priority housing" 
means target housing that qualifies as afTordable housing under 
section 215 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12745), including housing that receives 
assistance under subsection (b) or (o) of section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437fi:b) or (o)). 
(21) PUBLIC HOUSING.—The term "public housing" has the 
/ 
same meaning given the term in section 3(b) of the United 
/ 
States Housing Act of 1937 (42 U.S.C. 1437a(bXl)). 
/ 
(22) REDUCTION.—^The term "reduction" means measures 
designed to reduce or eliminate human exposure to lead-based 
paint hazards through methods including interim controls and 
abatement. 
(23) RESIDENTL\L DWELLING.—^The term "residential dwell-
ing" means— 
(A) a single-family dwelling, including attached struc-
tures such as porches and stoops; or 
(B) a single-family dwelling imit in a structure that 
contains more than 1 separate residential dwelling imit, 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3901 
and in which each such unit is used or occupied, or intended 
to be used or occupied, in whole or in pcurt, as the home 
or residence of 1 or more persons. 
(24) REsroENTiAL REAL PROPERTY.—The term "residential 
real property^ means real property on which there is situated 
1 or more residential dwellings used or occupied, or intended 
to be used or occupied, in whole or in part, as the home 
or residence of 1 or more persons. 
(25) RISK ASSESSMENT.—^The term "risk assessment" means 
an on-site investigation to determine and report the existence, 
nature, severity and location of lead-based paint hazards in 
residential dwellings, including— 
(A) information gathering regarding the age and his-
tory of the housing and occupancy by children under age 
6; 
(B) visual inspection; 
(C) limited wipe sampling or other environmental sam-
pling techniques; 
(D) other activity as may be appropriate; and 
(E) provision of a report explaining the results of the 
investigation. 
(26) SECRETARY.—The term "Secretary" means the Sec-
retary of Housing and Urban Development. 
(27) TARGET HOUSING.—The term "target housing" means 
any housing constructed prior to 1978, except housing for the 
eloerly or persons with disabilities (unless any child who is 
less than 6 years of age resides or is expected to reside in 
such housing for the elderly or persons with disabilities) or 
any 0-bedroom dwelling. In the case of jurisdictions which 
banned the sale or use of lead-based paint prior to 1978, the 
Secretary, at the Secretary's discretion, may designate an ear-
lier date. 
Subtitle A—Lead-Based Paint Hazard 
Reduction 
SEC. 1011. GRANTS FOR LEAD-BASED FADFT HAZARD REDUCTION IN 42 USC 4852. 
TARGET HOUSING. 
(a) GENERAL AUTHORITY.—^The Secretary is authorized to pro-
vide grants to eligible applicants to evaluate and reduce lead-
based paint hazards in priority housing that is not federally assisted 
housing, federally owned housing, or public housing, in accordance 
with theprovisions of this section. 
(b) ETLIGIBLE APPLICANTS.—^A State or unit of local government 
that has an approved comprehensive housing affordability strategy 
under section 105 of the Cranston-Cjonzalez National AfTordalMe 
Housing Act (42 U.S.C. 12705) is eligible to apply for a grant 
under this section. 
(c) FORM OF APPLICATIONS.—^To receive a grant under this 
section, a State or unit of local government shall submit an applica-
tion in such form and in such manner as the Secretary shall 
prescribe. An application shall contain— 
(1) a copy of that portion of an applicant's comprehensive 
housing affordability strategy required by section 105(bX16) 
of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701 et seq.); 
106 STAT. 3902 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) a description of the amount of assistance the applicant 
seeks under this section; 
(3) a description of the planned activities to be undertaken 
with grants under this section, including an estimate of the 
amount to be allocated to each activity; 
(4) a description of the forms of financial assistance to 
owners and occupants of priority housing tiiat will be provided 
through grants under this section; and 
(5) such assurances as the Secretary may require regarding 
the applicant's capacity to carry out the activities. 
(d) SELECTION CRITERIA.—The Secretary shall award grants 
under this section on the basis of the merit of the activities proposed 
to be carried out and on the basis of selection criteria, which 
shall include— 
(1) the extent to which the proposed activities will reduce 
the risk of lead-based paint poisoning to children under the 
age of 6 who reside in priority housing; 
(2) the degree of severity and extent of lead-based paint 
hazards in the jurisdiction to be served; 
(3) the ability of the applicant to leverage State, local, 
and private fimds to supplement the grant under this section; 
(4) the ability of the applicant to carry out the proposed 
activities; and 
(5) such other factors as the Secretary determines appro-
priate to ensure that grants made available under this section 
are used effectively and to promote the purposes of this Act. 
(e) ELIGIBLE ACTIVITIES.—^A grant under this section may be 
used to— 
(1) perform risk assessments and inspections in priority 
housing; 
(2) provide for the interim control of lead-based paint haz-
ards in priority housing; 
(3) provide for the abatement of lead-based paint hazards 
in priority housing; 
(4) provide for the additional cost of reducing lead-based 
paint hazards in units undergoing renovation funded by other 
sources; 
(5) ensure that risk assessments, inspections, and abate-
ments are carried out by certified contractors in accordance 
with section 402 of the Toxic Substances Control Act, as added 
by section 1021 of this Act; 
(6) monitor the blood-lead levels of workers involved in 
lead hazard reduction activities fiinded imder this section; 
(7) assist in the temporary relocation of families forced 
to vacate priority housing while lead hazard reduction measures 
are being conducted; 
(8) educate the public on the nature and causes of lead 
poisoning and measures to reduce exposure to lead, including 
exposure due to residential lead-based paint hazards; 
(9) test soil, interior surface dust, and the blood-lead levels 
of children imder the age of 6 residing in priority housing 
after lead-based paint hazard reduction activity has been con-
ducted, to assure that such activity does not cause excessive 
exposures to lead; and 
(10) carry out such other activities that the Secretary deter-
mines appropriate to promote the purposes of this Act. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3903 
(f) FORMS OF ASSISTANCE.—^The applicant may provide the serv-
ices described in this section through a variety of programs, includ-
ing grants, loans, equity investments, revolving loan funds, loan 
funds, loan guarantees, interest write-downs, and other forms of 
assistance approved by the Secretary. 
(g) TECHNICAL ASSISTANCE AND CAPAcrry BUILDING.— 
(1) IN GENERAL.—The Secretary shall develop the capacity 
of eligible applicants to carry out the requirements of section 
105(bX16) of the Cranston-Gonzalez National Affordable Hous-
ing Act and to carry out activities under this section. In fiscal 
years 1993 and 1994, the Secretary may make grants of up 
to $200,000 for the purpose of establishing State training, cer-
tification or accreditation programs that meet the requirements 
of section 402 of the Toxic Substances Control Act, as added 
by section 1021 of this Act. 
(2) SET-ASIDE.—Of the total amount approved in appropria-
tion Acts under subsection (o), there shall be set aside to 
carry out Uiis subsection $3,000,000 for fiscal year 1993 and 
$3,000,000 for fiscal year 1994. 
(h) MATCHING REQUIREMENT.—^Each recipient of a grant under 
this section shall make amtributions toward the cost of activities 
that receive assistance wider this section in an amount not less 
than 10 percent of the total grant amount under this section. 
(i) PROHIBITION OF SUBSTITUTION OF FUNDS.—Grants under 
this subtitle may not be used to replace other amounts made 
available or designated by State or local governments for use for 
the purposes under this subtitle. 
(j) LIMITATION ON USE.—An applicant shall en8iu*e that not 
more than 10 percent of the grant will be used for administrative 
expenses associated with the activities funded. 
(k) FINANCIAL RECORDS.—^An applicant shall maintain and 
provide the Secretary with financial records sufficient, in the 
determination of the Secretary, to ensure proper accounting and 
disbursing of amoimts received firom a grant under this section. 
(1) REPORT.—An appliccmt under this section shall submit to 
the Secretary, for any fiscal year in which the applicant expends 
grant funds under this section, a report that— 
(1) describes the use of the amounts received; 
(2) states the number of risk assessments and the number 
of inspections conducted in residential dwellings; 
(3) states the number of residential dwellings in which 
lead-based psdnt hazards have been reduced through interim 
controls; 
(4) states the number of residential dwellings in which 
lead-based paint hazards have been abated; and 
(5) provides any other information that the Secretary deter-
mines to be appropriate. 
(m) NOTICE OF FUNDING AVAILABILITY.—^The Secretary shall 
publish a Notice of Funding Availability pursuant to this section 
not later than 120 days after funds are appropriated for this section. 
(n) RELATIONSHIP TO OTHER LAW.—Effective 2 years after the 
date of promulgation of regulations under section 402 of the Toxic 
Substances Control Act, no grants for lead-based paint hazard 
evaluation or reduction may be awarded to a State under this 
section unless such State has an authorized program under section 
404 of the Toxic Substences Control Act. 
106 STAT. 3904 
PUBLIC LAW 102-550—OCT. 28, 1992 
(o) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of 
carrying out this Act, there are authorized to be appropriated 
$125,000,000 for fiscal year 1993 and $250,000,000 for fiscal year 
1994. 
SEC. 1012. EVALUATION AND REDUCTION OF LEAD-BASED PAINT HAZ-
ARDS IN FEDERALLY ASSISTED HOUSING. 
(a) GENERAL REQUIREMENTS.—Section 302 of the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4822) is amended— 
(1) by striking the title of the section and inserting: 
"REQUIREMENTS FOR HOUSING RECEIVING FEDERAL ASSISTANCE"; 
(2) in the first sentence of subsection (a)— 
(A) by striking "The Secretar}^** and inserting the fol-
lowing: 
"(1) ELIMINATION OF HAZARDS.—The Secretary"; and 
(B) by inserting before the period "or otherwise receives 
more than $5,000 m project-based assistance under a Fed-
eral housing program ; 
(3) by striking the second sentence of subsection (a) and 
inserting: "Beginning on January 1, 1995, such procedures shall 
apply to all such housing that constitutes target housing, as 
denned in section 1004 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992, and shall provide for appropriate 
measures to conduct risk assessments, inspections, interim con-
trols, and abatement of lead-based paint hazards. At a mini-
mum, such procedures shall require— 
"(A) the provision of lead hazard information pam-
ghlets, developed pursuant to section 406 of the Toxic 
ubstances Control Act, to purchasers and tenants; 
"(B) periodic risk assessments and interim controls 
in accordance with a schedule determined by the Secretary, 
the initial risk assessment of each unit constructed prior 
to 1960 to be conducted not later than January 1, 1996, 
and, for units constructed between 1960 and 1978— 
"(i) not less than 25 percent shall be performed 
by January 1,1998; 
"(ii) not less than 50 percent shall be performed 
by January 1, 2000; and 
"(iii) the remainder shall be performed by January 
1, 2002; 
"(C) inspection for the presence of lead-based paint 
prior to federally-fimded renovation or rehabilitation that 
is likely to disturb painted surfaces; 
"(D) reduction of lead-based paint hazards in the course 
of rehabilitation projects receiving less than $25,000 per 
unit in Federal funds; 
"(E) abatement of lead-based paint hazards in the 
course of substantial rehabilitation projects receiving more 
than $25,000 per unit in Federal fimds; 
"(F) where risk assessment, inspection, or reduction 
activities have been undertaken, the provision of notice 
to occupants describing the nature and scope of such activi-
ties and the actual risk assessment or inspection reports 
(including available information on the location of any 
remaining lead-based paint on a surface-by-surface basis); 
and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3905 
"(G) such other measures £is the Secretary deems 
appropriate."; and 
(4) in the third sentence, by striking T h e Secretary may" 
and inserting the following: 
"(2) ADDITIONAL iviEASURES.^The Secretary may". 
(b) MEASUREMENT CRITERIA.—Section 302(b) of the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4822(b)) is amended 
by striking "for the detection" and all that follows through the 
end of paragraph (2) and inserting "for the risk assessment, interim 
control, inspection, and abatement of lead-based paint hazards in 
housing covered by this section shall be based upon guidelines 
developed pursuant to section 1017 of the Residential Lead-Based 
Paint Hazard Reduction Act of 1992.". 
(c) INSPECTION.—Section 302(c) of the Lead-Based Paint Poison-
ing Prevention Act (42 U.S.C. 4822(c)) is amended— 
(1) in the second sentence, by striking "qualified" and 
inserting "certified"; and 
(2) in the third and fourth sentences, by inserting "or 
0.5 percent by weight" after "squared". 
(d) PUBLIC HOUSING.—Section 302(dXl) of the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4822(dXl)) is amended— 
(1) in the heading, by striking "CIAP" and inserting "MOD-
ERNIZATION"; and 
(2) in the fourth sentence, by striking "to eliminate the 
lead-based paint poisoning hazards" and inserting "of lead-
based paint and lead-based paint hazards". 
(e) HOME INVESTMENT PARTNERSHIPS.—Section 212(a) of the 
Cranston-(jronzalez National Affordable Housing Act (42 U.S.C. 
12742(a)) is amended by adding at the end the following new 
paragraph: 
"(5) LEAD-BASED PAINT HAZARDS.—^A participating jurisdic-
tion may use funds provided under this subtitle for the evalua-
tion and reduction of lead-based paint hazards, as defined 
in section 1004 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992.". 
(0 COMMUNITY DEVELOPMENT BLOCK GRANTS.—Section 105(a) 
of the Housing and Community Development Act of 1974 (42 U.S.C. 
5305(a)) is amended— 
(1) in paragraph (19), by striking "and" at the end; 
(2) in paragraph (20), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following new paragraph: 
"(21) lead-based paint hazard evaluation and reduction, 
as defined in section 1004 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992.". 
(g) SECTION 8 RENTAL ASSISTANCE.—Section 8(cX2XB) of the 
United States Housing Act of 1937 (42 U.S.C. 1437flcX2XB)) is 
amended by adding at the end the following: "The Secretary may 
(at the discretion of the Secretary and subject to the availability 
of appropriations for contract amendments), on a project by project 
basis for projects receiving project-based assistance, provide adjust-
ments to the maximum monthly rents to cover the costs of evaluat-
ing and reducing lead-based paint hazards, as defined in section 
1004 of the Residential Lead-Based Paint Hazard Reduction Act 
of 1992.". 
106 STAT. 3906 
PUBLIC LAW 102-550—OCT. 28, 1992 
(h) HOPE FOR PUBUC AND INDIAN HOUSING HOMEOWNER-
SHIP.—The United States Housing Act of 1937 (42 U.S.C. 1437 
et seq.) is amended— 
42 use 
(1) in section 302(b)— 
i437aaa-i. 
(^j H
j
y redesignating paragraphs (4) through (8) as 
paragraphs (5) through (9), respectively; and 
(B) by inserting after paragrai>h (3) the following: 
"(4) inspection for lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act;"; and 
42 use 
(2) in section 303(b)— 
I4d7aaa 2. 
(^j jjy redesignating paragraphs (4) through (13) as 
paran'aphs (5) through (14), respectively; and 
(B) by adding after paragraph (3) the following: 
"(4) Abatement of lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act.". 
(i) HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS.—The 
Cranston-Gronzalez National Affordable Housing Act (42 U.S.C. 
12701 et seq.) is amended— 
42 use 12872. 
(1) In section 422(b)— 
(A) by redesignating paragraphs (4) through (8) as 
paragraphs (5) through (9), respectively; and 
(B) by inserting aft«r paragraph (3) the following: 
"(4) inspection for lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act;"; and 
42 use 12873. 
(2) in section 423(b)— 
(A) by redesignating paragraphs (4) through (13) as 
paragraphs (5) through (14), respectively; and 
(B) by inserting aft«r paragraph (3) the foUovdng: 
"(4) Abatement of lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act.". 
(j) HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES.— 
The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12701 et seq.) is amended— 
42 use 12892. 
(1) in section 442(b)— 
(A) by redesignating paragraphs (4) through (8) as 
paran'aphs (5) through (9), respectively; and 
(B) by inserting after paragraph (3) the following: 
"(4) inspection for lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act;"; and 
42 use 12893. 
(2) in section 443(b)— 
(A) by redesignating paragraphs (4) through (10) as 
paragraphs (5) through (11), respectively; and 
(B) Dy inserting after paragraph (3) the following: 
"(4) Abatement of lead-based paint hazards, as required 
by section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act.", 
(k) FHA INSURANCE FOR SINGLE FAMILY HOMES.— 
(1) 
HOME IMPROVEMENT LOANS.—Section 2(a) 
of 
the 
National Housing Act (12 U.S.C. 1703(a)) is amended in the 
fifth paragraph— 
(A) by inserting after the first sentence the following: 
"Alterations, repairs, and improvements upon or in connec-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3907 
tion with existing structures may also include the evalua-
tion and reduction of lead-based paint hazards."; and 
(B) by adding at the end the following: 
"(4) the terms 'evaluation', 'reduction*, and lead-based paint 
hazard' have the same meanings given those terms in section 
1004 of the Residential Lead-Based Paint Hazard Reduction 
Act of 1992.". 
(2) REHABILITATION LOANS.—Section 203(kX2XB) of the 
National Housing Act (12 U.S.C. 1709(kX2XB)) is amended 
by adding at the end the following: 'The term 'rehabilitation' 
may also include measures to evaluate and reduce lead-based 
paint hazards, as such terms are defined in section 1004 of 
the Residential Lead-Based Paint Hazard Reduction Act of 
1992.". 
(1) FHA 
INSURANCE FOR MULTIFAMILY 
HOUSING.—Section 
221(dX4Xiv) of the National Housing Act (12 U.S.C. 17151(dX4Xiv)) 
is amended by inserting after "rehabilitation" the first time it 
appears the following: "(including the cost of evaluating and reduc-
ing lead-based paint hazards, as such terms are defined in section 
1004 of the Residential Lead-Based Paint Hazard Reduction Act 
of 1992)". 
(m) RURAL HOUSING.—Section 501(a) of the Housing Act of 
1949 (42 U.S.C. 1471) is amended by adding at the end the follow-
ing: 
"(5) DEFINITIONS.—For purposes of this title, the terms 
'repair', 'repairs', 'rehabilitate', and 'rehabilitation' include 
measures to evaluate and reduce lead-based paint hazards, 
as such terms are defined in section 1004 of tne Residential 
Lead-Based Paint Hazard Reduction Act of 1992.". 
SEC. 1013. DISPOSITION OF FEDERALLY OWNED HOUSING. 
Section 302(a) of the Lead-Based Paint Poisoning Prevention 
Act (42 U.S.C. 4822(a)) (as amended by section 1012(a)) is amended 
by striking the fourth sentence and adding at the end the following: 
"(3) DISPOSITION OF FEDERALLY OWNED HOUSING.— 
"(A) PRE-1960 TARGET HOUSING.—Beginning on January 
1, 1995, procedures established under paragraphs (1) and 
(2) shall reauire the inspection and abatement of lead-
based paint hazards in all federally owned target housing 
constructed prior to 1960. 
"(B) TARGET HOUSING CONSTRUCTED BETWEEN i960 AND 
1978.—Beginning on January 1, 1995, procedures estab-
lished under paragraphs (1) and (2) shall require an inspec-
tion for lead-based paint and lead-based paint hazards 
in all federally owned target housing constructed between 
1960 and 1978. The results of such inspections shall be 
made available to prospective purchasers, identifying the 
presence of lead-based paint and lead-based paint hazards 
on a surface-by-surface basis. The Secretary shall have 
the discretion tt) waive the requirement of this subpara-
graph for housing in which a federally funded risk assess-
ment, performed by a certified contractor, has determined 
no lead-based paint hazards are present. 
"(C) BUDGET AUTHORITY.—TO the extent that subpara-
graphs (A) and (B) increase the cost to the Cirovernment 
of outstanding direct loan obligations or loan guarantee 
commitments, such activities shall be treated as modifica-
106 STAT. 3908 
PUBLIC LAW 102-550—OCT. 28, 1992 
tions under section 504(e) of the Federal Credit Reform 
Act of 1990 and shall be subject to the availability of 
appropriations. To the extent that paragraphs (A) and (B) 
impose additional costs to the Resolution Trust Corporation 
and the Federal Deposit Insurance Corporation, its require-
ments shall be carried out only if appropriations are pro-
vided in advance in an appropriations Act. In the absence 
of appropriations sufficient to cover the costs of subpara-
graphs (A) and (B), these requirements shall not apply 
to the affected agency or agencies. 
"(D) DEFINITIONS.—For the purposes of this subsection, 
the terms 'inspection', 'abatement', lead-based paint haz-
ard','federally owned housing*,'terget housing*,'nsk assess-
ment', and 'certified contractor* have the same meaning 
g'ven such terms in section 1004 of the Residential Lead-
ased Paint Hazard Reduction Act of 1992. 
"(4) DEFINITIONS.—For purposes of this subsection, the 
terms 'risk assessment', 'inspection', 'interim control', 'abate-
ment', 'reduction', and 'lead-based paint hazard' have the same 
meaning given such terms in section 1004 of the Residential 
Lead-Based Paint Hazard Reduction Act of 1992. 
SEC. 1014. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY. 
Section 105 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12705) is amended— 
(1) in subsection (bX14), by striking "and" at the end; 
(2) in subsection (bX15), by striking the period at the 
end and inserting "; and"; 
(3) by inserting after paragraph (15) of subsection (b) the 
following new paragraph: 
"(16) estimate the number of housing unite within the 
iurisdiction that are occupied by low-income families or very 
low-income families and that contein lead-based paint hazards, 
as defined in section 1004 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992, outline the actions proposed 
or being taken to evaluate and reduce lead-based paint nazards, 
and describe how lead-based paint hazard reduction will be 
integrated into housing policies and programs."; and 
(4) in subsection (e>— 
(A) by striking "When preparing" and inserting the 
following: 
"(1) IN GENERAL.—When preparing"; and 
(B) by adding at the end the following new paragraph: 
"(2) LEAD-BASED PAINT HAZARDS.—When preparing that 
portion of a housing strategy required by subsection (DX16), 
a jurisdiction shall consult with State or local health and child 
welfare agencies and examine existing date related to lead-
based paint hazards and poisonings, including health depart-
ment date on the addresses of housing unite in which children 
have been identified as lead poisoned.". 
42 use 4852a. 
SEC. 1015. TASK FORCE ON LEAD-BASED PAINT HAZARD REDUCTION 
AND FINANCING. 
(a) IN GENERAL.—^The Secretery, in consultetion with the 
Administrator of the Environmentel Protection Agency, shall esteb-
lish a tesk force to make recommendations on expanding resources 
and efforte to evaluate and reduce lead-based paint nazards in 
private housing. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3909 
(b) MEMBERSHIP.—^The task force shall include individuals rep-
resenting the Department of Housing and Urban Development, 
the Farmers Home Administration, the Department of Veterans 
Affairs, the Federal Home Loan Mortgage Corporation, the Federal 
National Mortgage Association, the Environmental 
Protection 
Agency, employee organizations in the building and construction 
trades industry, landlords, tenants, primary lending institutions, 
private mortgage insurers, single-family and multifamil^ real estate 
mterests, nonprofit housing developers, property liability insurers, 
public housing agencies, low-income housing advocacy organiza-
tions, national. State and local lead-poisoning prevention advocates 
and experts, and community-based organizations located in areas 
with substantial rental housing. 
(c) RESPONSIBILITIES.—^The task force shall make recommenda-
tions to the Secretary and the Administrator of the Environmental 
Protection Agency concerning— 
(1) incorporating the need to finance lead-based paint haz-
ard reduction into underwriting standards; 
(2) developing new loan products and procedures for financ-
ing lead-basea paint hazard evaluation and reduction activities; 
(3) adjusting appraisal guidelines to address lead safety; 
(4) incorporating risk assessments or inspections for lead-
based paint as a routine procedure in the origination of new 
residential mortgages; 
(5) revising guidelines, regulations, and educational pam-
phlets issued by the Department of Housing and Urban Devel-
opment and other Federal agencies relating to lead-based paint 
poisoning prevention; 
(6) reducing the current uncertainties of liability related 
to lead-based paint in rental housing bv clarifying standards 
of care for landlords and lenders, and by exploring the "s£ife 
harbor" concept; 
(7) increasing the availability of liability insurance for own-
ers of rental housing and certified contractors and establishing 
alternative systems to compensate victims of lead-based paint 
poisoning; and 
(8) evaluating the utility and appropriateness of requiring 
risk assessments or inspections and notification to prospective 
lessees of rental housing. 
(d) COMPENSATION.—The members of the task force shall not 
receive Federal compensation for their participation. 
SEC. 1016. NATIONAL CONSULTATION ON LEAD-BASED PAINT HAZARD 42 USC 4852b. 
REDUCTION. 
In carrying out this Act, the Secretary shall consult on an 
ongoing basis with the Administrator of the Environmental Protec-
tion Agency, the Director of the Centers for Disease Control, other 
Federal agencies concerned with lead poisoning prevention, and 
the task force established pursuant to section 1015. 
SEC. 1017. GUIDELINES FOR LEAD-BASED PAINT HAZARD EVALUA- 42 USC 4852c. 
TION AND REDUCTION ACTIYITIES. 
Not later than 12 months after the date of enactment of this 
Act, the Secretary, in consultation with the Administrator of the 
Environmental Protection Agency, the Secretary of Labor, and the 
Secretary of Health and Human Services (acting through the Direc-
tor of the Centers for Disease Control), shall issue g^delines for 
the conduct of federally supported work involving risk assessments. 
106 STAT. 3910 
PUBLIC LAW 102-550—OCT. 28, 1992 
inspections, interim controls, and abatement of lead-based paint 
hazards. Such guidelines shall be based upon criteria that measure 
the condition of the housing (and the presence of children imder 
age 6 for the purposes of risk assessments) and shall not be based 
upon criteria that measure the health of the residents of the 
housing. 
42 use 4g52d. 
SEC. 1018. DISCLOSURE OF INFORBfATION CONCERNING LEAD UPON 
TRANSFER OF RESIDENTIAL PROPERTY. 
(a) LEAD DISCLOSURE IN PURCHASE AND SALE OR LEASE OF 
TARGET HOUSING.— 
Regulations. 
(1) LEAD-BASED PAINT HAZARDS.—Not later than 2 years 
after the date of enactment of this Act, the Secretary and 
the Administrator of the Environmental Protection Agency shall 
promulgate regiilations imder this section for the disclosure 
of lead-based paint hazards in target housing which is offered 
for sale or lease. The relations shall require that, before 
the purchaser or lessee is obligated imder any contract to 
purchase or lease the housing, the seller or lessor shall— 
(A) provide the purchaser or lessee with a lead hazard 
information pamphlet, as prescribed by the Administrator 
of the Environmental Protection Agency under section 406 
of the Toxic Substances Control Act; 
(B) disclose to the purchaser or lessee the presence 
of any known lead-based paint, or anjr known lead-based 
paint hazards, in such housing and provide to the purchaser 
or lessee any lead hazard evaluation report available to 
the seller or lessor; and 
(C) permit the purchaser a 10-day period (imless the 
parties mutiially agree upon a different period of time) 
to conduct a risk assessment or inspection for the presence 
of lead-based paint hazards. 
(2) CONTRACT FOR PURCHASE AND SALE.—Regulations 
promulgated under this section shall provide that every contract 
for the purchase and sale of any interest in target housing 
shall contain a Lead Warning Statement and a statement 
signed by the purchaser that the purchaser has— 
(A) read the Lead Warning Statement and understands 
its contents; 
(B) received a lead hazard information pamphlet; and 
(C) had a 10-day opportunity (unless the parties mutu-
ally agreed upon a different period of time) before becoming 
obligated under the contract to purchase the housing to 
conduct a risk assessment or inspection for the presence 
of lead-based paint hazcurds. 
(3) CONTENTS OF LEAD WARNING STATEMENT.—The Lead 
Warning Statement shall contain the following text printed 
in large t}rpe on a separate sheet of paper attached to the 
contract: 
"Every purchaser of any interest in residential real property 
on which a residential dwelling was built prior to 1978 is notified 
that such property may present exposure to lead from lead-based 
paint that may place young children at risk of developing lead 
poisoning. Lead poisoning in young children may produce perma-
nent neurological damage, including learning disabilities, reduced 
intelligence quotient, behavioral problems, and impaired memory. 
Lead poisoning also poses a particular risk to pregnant women. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3911 
The seller of any interest in residential real property is required 
to provide the buyer with any information on lead-based paint 
hazards from risk assessments or inspections in the seller's posses-
sion and notify the buyer of any known lead-based paint hazards. 
A risk assessment or inspection for possible lead-based paint haz-
ards is recommended prior to purchase.". 
(4) COMPLIANCE ASSURANCE.—Whenever a seller or lessor 
has entered into a contract with an agent for the piirpose 
of selling or leeuiing a unit of target housing, the regulations 
promulgated under this section shall require the agent, on 
behalf of the seller or lessor, to ensure compliance with the 
requirements of this section. 
(5) PROMULGATION.—A suit may be brought against the 
Secretary of Housing and Urbcui Development and the Adminis-
trator of the Environmental Protection Agency imder section 
20 of the Toxic Substances Control Act to compel promulgation 
of the regulations required under this section and the Federal 
district court shall have jurisdiction to order such promulgation. 
(b) PENALTIES FOR VIOLATIONS.— 
(1) MONETARY PENALTY.—^Any person who knowingly vio-
lates any provision of this section shall be subject to civil 
money penalties in accordance with the provisions of section 
102 of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545). 
(2) ACTION BY SECRETARY.—The Secretary is authorized 
to take such lawful action as may be necessary to ei\join any 
violation of this section. 
(3) CIVIL LIABILITY.—^Any person who knovdngly violates 
the provisions of this section shall be jointly and severally 
liable to the purchaser or lessee in an amount equal to 3 
times the amount of damages incurred by such individual. 
(4) COSTS.—In any civil action brought tor damages pursu-
ant to paragraph (3), the appropriate court may award court 
costs to the party commencing such action, together with 
reasonable attorney fees and any expert witness fees, if that 
party prevails. 
(5) PROHIBITED ACT.—^It shall be a prohibited act under 
section 409 of the Toxic Substances Control Act for any person 
to fail or refuse to comply with a provision of this section 
or with any rule or order issued under this section. For purposes 
of enforcing this section under the Toxic Substances Control 
Act, the penalty for each violation applicable under section 
16 of that Act shall not be more than $10,000. 
(c) VALIDITY OF CONTRACTS AND LIENS.—Nothing in this section 
shall affect the validity or enforceability of any sale or contract 
for the purchase and sale or lease of any interest in residential 
real property or any loan, loan agreement, mortgage, or lien made 
or arising in connection with a mortgage loan, nor shall anything 
in this section create a defect in title. 
(d) EFFECTIVE DATE.—^The regulations under this section shall 
take effect 3 years after the date of the enactment of this title. 
106 STAT. 3912 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle B—^Lead Exposure Reduction 
Lead-B£ised 
Paint Exposure 
Reduction Act. 
SEC. 1021. CONTRACTOR TRAINING AND CERTIFICATION. 
(a) AMENDMENT TO THE TOXIC SUBSTANCES CONTROL ACT.— 
The Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is 
amended by adding after title III the following new title: 
mXLE IV—LEAD EXPOSURE 
REDUCTION 
15 use 2681. 
"SEC. 401. DEFINITIONS. 
*Tor the purposes of this title: 
"(1) ABATEMENT.—^The term 'abatement' means any set of 
measures designed to permanently eliminate lead-based paint 
h£izards in accordsince with standards established by the 
Administrator under this title. Such term includes— 
"(A) the removal of lead-based paint and lead-contami-
nated dust, the permanent containment or encapsulation 
of lead-based paint, the replacement of lead-painted sur-
faces or fixtures, and the removal or covering of lead-
contaminated soil; and 
"(B) 
all 
preparation, 
cleanup, 
disposal, 
and 
postabatement clearance testing activities associated with 
such measures. 
"(2) ACCESSIBLE SURFACE.—The term 'accessible surface' 
means an interior or exterior surface painted with lead-based 
paint that is accessible for a young child to mouth or chew. 
"(3) DETERIORATED PAINT.—The term 'deteriorated paint' 
means any interior or exterior paint that is peeling, chipping, 
chalking or cracking or any paint located on an interior or 
exterior surface or fixture that is damaged or deteriorated. 
"(4) EVALUATION.—^The term 'evaluation' means risk assess-
ment, inspection, or risk assessment and inspection. 
"(5) FRICTION SURFACE.—^The term 'friction surface' means 
an interior or exterior surface that is subject to abrasion or 
friction, including certain window, floor, and stair surfaces. 
"(6) IMPACT SURFACE.—^The term 'impact surface' means 
an interior or exterior surface that is subject to damage by 
repeated impacts, for example, certain parts of door frames. 
"(7) INSPECTION.—^The term 'inspection' means (A) a sur-
face-by-surface investigation to determine the presence of lead-
based paint, as provided in section 302(c) of the Lead-Based 
Paint Poisoning Prevention Act, and (B) the provision of a 
report explaining the results of the investigation. 
"(8) INTERIM CONTROLS.—^The term Interim controls' means 
a set of measures designed to reduce temporarily human expo-
sure or likelv exposure to lead-based paint hazards, including 
specialized cleamng, repairs, maintenance, painting, temporary 
conteinment, ongoing monitoring of lead-based paint hazards 
or potential hazards, and the esteblishment and operation of 
management and resident education programs. 
"(9) LEAD-BASED PAINT.—^The term lead-based paint' means 
paint or other surface coatings that contain lead in excess 
of 1.0 milligrams per centimeter squared or 0.5 percent by 
weight or (A) in the case of paint or other surface coatings 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3913 
on target housing, such lower level as may be established 
by the Secretary of Housing and Urban Development, as defined 
i 
in section 302(c) of the Lead-Based Paint Poisoning Prevention 
Act, or (B) in the case of any other paint or surface coatings, 
such other level as may be established bv the Administrator. 
**(10) LEAD-BASED PAINT HAZARD.—The term lead-based 
1
>aint hazard' means any condition that causes exposure to 
ead 
from 
lead-contaminated dust, lead-cont£uninated soil, lead-
contaminated paint that is deteriorated or present in accessible 
surfaces, friction surfaces, or impact surfaces that would result 
in adverse human health effects as established by the Adminis-
trator imder this title. 
"(11) LEAD-CONTAMINATED DUST.—^The term lead-contami-
nated dust' means surface dust in residential dwellings that 
contains an area or mass concentration of lead in excess of 
levels determined by the Administrator imder this title to pose 
a threat of adverse health effects in pregnant women or young 
children. 
"(12) LEAD-CONTAMINATED SOIL.—The term lead-contami-
nated soil' means bare soil on residential real property that 
contains lead at or in excess of the levels determined to be 
hazeurdous to human health by the Administrator under this 
title. 
"(13) REDUCTION.—^The term 'reduction' means measures 
designed to reduce or eliminate human exposure to lead-based 
paint hazards through methods including mterim controls and 
abatement. 
"(14) RESIDENTIAL DWELLING.—The term 'residential dwell-
ing* means— 
"(A) a single-family dwelling, including attached struc-
tures such as porches and stoops; or 
"(B) a single-family dwelling unit in a structure that 
contains more than 1 separate residential dwelling imit, 
and in which each such unit is used or occupied, or intended 
to be used or occupied, in whole or in part, as the home 
or residence of 1 or more persons. 
"(15) RESIDENTIAL REAL PROPERTY.—The term 'residential 
real property* means real property on which there is situated 
1 or more residential dwellings used or occupied, or intended 
to be used or occupied, in whole or in part, as the home 
or residence of 1 or more persons. 
"(16) RISK ASSESSMENT.—^The term 'risk assessment' means 
an on-site investigation to determine and report the existence, 
nature, severitv and location of lead-based paint hazards in 
residential dwellings, including— 
"(A) information gathering regarding the age and his-
tory of the housing and occupancy by children under age 
6; 
"(B) visual inspection; 
"(C) Umited wipe sampling or other environmental 
sampling techniques; 
"(D) other activity as may be appropriate; and 
"(E) provision of a report explaining the results of 
the investigation. 
"(17) TARGET HOUSING.—The term 'target housing* means 
any housing constructed prior to 1978, except housing for the 
elderly or persons with olisabilities (unless any child who is 
106 STAT. 3914 
PUBLIC LAW 102-550—OCT. 28, 1992 
less than 6 years of age resides or is expected to reside in 
such housing for the elderly or persons with disabilities) or 
any 0-bedroom dwelling. In the case of jurisdictions which 
banned the sale or use of lead-based paint prior to 1978, the 
Secretary of Housing and Urban Development, at the Sec-
retary's discretion, may designate an earlier date. 
15 use 2682. 
«<SEC. 402. LEAD-BASED PAINT ACTIVITIES TRAINING AND CERTIFI. 
CATION. 
"(a) REGULATIONS.— 
"(1) IN GENERAL.—Not later than 18 months after the date 
of the enactment of this section, the Administrator shall, in 
consultation with the Secretary of Labor, the Secretary of Hous-
ing and Urban Development, and the Secretary of Health and 
Human Services (acting through the Director of the National 
Institute for Occupational Safety and Health), promulgate final 
regulations governing lead-based paint activities to ensure that 
individuals engaged in such activities are properly trained; 
that training programs are accredited; and that contractors 
engaged in such activities are certified. Such regulations shall 
contain standards for performing lead-based paint activities, 
taking into account reliability, effectiveness, and safety. Such 
regulations shall require that all risk assessment, inspection, 
and abatement activities performed in target housing shall 
be performed by certified contractors, as such term is defined 
in section 1004 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992. The provisions of this section shall 
supersede the provisions set forth under the heading 'Lead 
Abatement Training and Certification' and under the heading 
Training Grants' in title III of the Act entitled 'An Act making 
appropriations for the Departments of Veterans Affairs and 
Housing and Urban Development, and for sundry independent 
agencies, commissions, corporations, and offices for the fiscal 
year ending September 30, 1992, and for other piirposes'. Public 
Law 102-139, and upon the enactment of this section the 
provisions set forth in such public law under such headings 
shall cease to have any force and effect. 
"(2) ACCREDITATION OF TRAINING PROGRAMS.—Final regula-
tions promulgated under paragraph (1) shall contain specific 
requirements for the accreditation of lead-based paint activities 
training programs for workers, supervisors, inspectors and plan-
ners, and other individuals involved in lead-based paint activi-
ties, including, but not limited to, each of the following: 
"(A) Minimum requirements for the accreditation of 
training providers. 
"(B) Minimum training curriculum requirements. 
"(C) Minimum training hour requirements. 
"(D) Minimum hands-on training requirements. 
"(E) Minimum trainee competency and proficiency 
requirements. 
"(F) Minimum requirements for training program qual-
ity control. 
"(3) 
ACCREDITATION 
AND 
CERTIFICATION 
FEES.—The 
Administrator (or the State in the case of an authorized State 
program) shall impose a fee on— 
"(A) persons operating training programs accredited 
under this title; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3915 
"(B) lead-based paint activities contractors certified in 
accordance with paragraph (1). 
The fees shall be established at such level as is necessary 
to cover the costs of administering and enforcing the standards 
and regulations under this section which are applicable to 
such programs and contractors. The fee shall not be imposed 
on any State, local government, or nonprofit training program. 
The Administrator (or the State in the case of an authorized 
State program) may waive the fee for lead-based paint activities 
contractors imder subparagraph (A) for the purpose of training 
their own employees. 
"(b) LEAD-BASED PAINT AcnvmES.—For purposes of this title, 
the term lead-based paint activities' means— 
"(1) in the case of target housing, risk assessment, inspec-
tion, and abatement; and 
"(2) in the case of any public building constructed before 
1978, commercial building, bridge, or other structure or super-
structure, identification of lead-based paint and materials 
containing lead-based paint, deleading, removal of lead firom 
bridges, and demolition. 
For purposes of paragraph (2), the term 'deleading* means activities 
conducted bv a person who offers to eliminate lead-based paint 
or lead-based paint hazards or to plan such activities, 
"(c) RENOVATION AND REMODEUNG.— 
"(1) GUIDELINES.—^In order to reduce the risk of exposure 
to lead in connection with renovation and remodeling of target 
housing, public buildings constructed before 1978, and commer-
cial bmldings, the Administrator shall, within 18 months afi;er 
the enactment of this section, promidgate guidelines for the 
conduct of such renovation and remodeling activities which 
may create a risk of exposure to dangerous levels of lead. 
The Administrator shall disseminate such guidelines to persons 
engaged in such renovation and remodeling through hardware 
and paint stores, employee organizations, trade groups. State 
and local agencies, and through other appropriate means. 
"(2) STUDY OF CERTIFICATION.—The Administrator shall 
conduct a study of the extent to which persons engaged in 
various types of renovation and remodeling activities in target 
housing, public buildings constructed before 1978, and commer-
cial buildings are exposed to lead in the conduct of such activi-
ties or disturb lead and create a lead-based paint hazard on 
a regular or occasional basis. The Administrator shall complete 
such study and publish the results thereof vdthin 30 months 
after the enactment of this section. 
"(3) CERTIFICATION DETERMINATION.—Within 4 years after Regulations. 
the enactment of this section, the Administrator snail revise 
the regulations under subsection (a) to apply the regulations 
to renovation or remodeling activities in target housing, public 
buildings constructed before 1978, and commercial buildings 
that create lead-based paint hazards. In determining which 
contractors are engaged in such activities, the Administrator 
shall utilize the results of the study under paragraph (2) and 
consult with the representatives of labor organizations, lead-
based paint activities contraciors, persons engaged in remodel-
ing and renovation, experts in lead health eitects, and others. 
If the Administrator determines that any category of contractors 
engaged in renovation or remodeling does not require certifi-
106 STAT. 3916 
PUBLIC LAW 102-550—OCT. 28, 1992 
15 u s e 2683. 
Regulations. 
15 use 2684. 
cation, the Administrator shall publish an explanation of the 
basis for that determination. 
'^EC. 403. IDENTIFICATION OF DANGEROUS LEVELS OF LEAD. 
"Within 18 months after the enactment of this title, the 
Administrator shall promulgate regulations which shall identify, 
for purposes of this title and the Residential Lead-Based Paint 
Hazard Reduction Act of 1992, lead-based paint hazards, lead-
contaminated dust, and lead-contiaminated soil. 
<«£€. 404. AUTHORIZED STATE PROGRAMS. 
"(a) APPROVAL.—^Any State which seeks to administer and 
enforce the standards, regulations, or other requirements estab-
lished under section 402 or 406, or both, may, £ifter notice and 
opportunity for public hearing, develop and submit to the Adminis-
trator an application, in such form as the Administrator shall 
require, for authorization of such a State program. Any such State 
may also certify to the Administrator at the time of submitting 
sucn program that the State program meets the requirements of 
paragrapns (1) and (2) of subsection (b). Upon submission of such 
certification, the State program shall be deemed to be authorized 
iinder this section, and shall apply in such State in lieu of the 
corresponding Federal program imder section 402 or 406, or both, 
as the case may be, until such time as the Administrator dis-
approves the program or withdraws the authorization. 
"(b) APPROVAL OR DISAPPROVAL.—Within 180 days following 
submission of an application under subsection (a), the Administrator 
shall approve or disapprove the application. The Administrator 
may approve the application only if, after notice and after oppor-
tunity for public hearing, the Administrator finds that— 
"(1) the State program is at least as protective of human 
health and the environment as the Federal program under 
section 402 or 406, or both, as the case may be, and 
"(2) such State program provides adequate enforcement. 
Upon authorization of a State program under this section, it shall 
be unlawful for any person to violate or fail or refuse to comply 
with any requirement of such program. 
"(c) WITHDRAWAL OF AUTHORIZATION.—If a State is not admin-
istering and enforcing a program authorized imder this section 
in compliance with standards, regulations, and other requirements 
of this title, the Administrator shall so notify the State and, if 
corrective action is not completed within a reasonable time, not 
to exceed 180 days, the Administrator shall withdraw authorization 
of such program and establish a Federal program pursuant to 
this title. 
"(d) MODEL STATE PROGRAM.—Within 18 months after the 
enactment of this title, the Administrator shall promulgate a model 
State program which may be adopted by any State which seeks 
to administer and enforce a State program under this title. Such 
model program shall, to the extent practicable, encourage States 
to utilize existing State and local certification and accreditation 
programs and procedures. Such program shall encourage reciprocity 
among the States vnth respect to the certification under section 
402. 
"(e) OTHER STATE REQUIREMENTS.—^Nothing in this title shall 
be construed to prohibit any State or political subdivision thereof 
from imposing any requirements which are more stringent theui 
those imposed by tnis title. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3917 
"(f) STATE AND LOCAL CERTIFICATION.—The regulations under 
this title shall, to the extent appropriate, encourage States to seek 
program authorization and to use existing State and local certifi-
cation and accreditation procedures, except that a State or local 
government shall not require more than 1 certification under this 
section for any lead-based paint activities contractor to carry out 
lead-based paint activities in the State or political subdivision 
thereof. 
"(g) GRANTS TO STATES.—^The Administrator is authorized to 
make grants to States to develop and carry out authorized State 
programs under this section. The grants shall be subject to such 
terms and conditions as the Administrator may establish to further 
the purposes of this title. 
"(h) ENFORCEMENT BY ADMINISTRATOR.—If a State does not 
have a State program authorized under this section and in efiTect 
by the date which is 2 years after promulgation of the regulations 
under section 402 or 406, the Administrator shall, by such date, 
establish a Federal program for section 402 or 406 (as the case 
may be) for such State and administer and enforce such program 
in such State. 
'^EC. 406. LEAD ABATEMENT AND MEASUREMENT. 
15 USC 2685. 
"(a) PROGRAM To PROMOTE LEAD EXPOSURE ABATEMENT.—The 
Administrator, in cooperation with other appropriate Federal 
departments and agencies, shall conduct a comprehensive program 
to promote safe, effective, and affordable monitoring, detection, 
and abatement of lead-based paint and other lead exposure hazards. 
"(b) 
STANDARDS FOR ENVIRONMENTAL SAMPUNG LABORA-
TORIES.—(1) The Administrator shall establish protocols, criteria, 
and minimum performance standards for laboratory analysis of 
lead in paint films, soil, and dust. Within 2 years after the enact-
ment of this title, the Administrator, in consultation with the Sec-
retary of Health and Human Services, shall establish a program 
to certify laboratories as qualified to test substances for lead content 
imless the Administrator determines, by the date specified in this 
paragraph, that effective voluntary accreditation programs are in 
place and operating on a nationwide basis at the time of such 
determination. To be certified under such program, a laboratory 
shall, at a minimum, demonstrate an ability to test substances 
accurately for lead content. 
"(2) Not later than 24 months after the date of the enactment Public 
of this section, and annually thereafter, the Administrator shall ^formation 
publish and make available to the public a list of certified or 
accredited environmental sampling laboratories. 
"(3) If the Administrator determines under paragraph (1) that 
effective voluntary accreditation programs are in place for environ-
mental sampling laboratories, the Administrator shall review the 
performance and effectiveness of such programs within 3 years 
after such determination. If, upon such review, the Administrator 
determines that the voluntary accreditation programs are not effec-
tive in assuring the quality and consistency of laboratory analyses, 
the Administrator shall, not more than 12 months thereafter, estab-
lish a certification program that meets the requirements of para-
graph (1). 
"(c) EXPOSURE STUDIES.—(1) The Secretary of Health and 
Human Services (hereafter in this subsection referred to as the 
'Secretary*), acting through the Director of the Centers for Disease 
106 STAT. 3918 
PUBLIC LAW 102-550—OCT. 28, 1992 
Control, (CDC), and the Director of the National Institute of 
Environmental Health Sciences, shall jointly conduct a study of 
the soiu'ces of lead exposure in children who have elevated blood 
lead levels (or other indicators of elevated lead body burden), as 
defined by the Director of the Centers for Disease Control. 
"(2) The Secretaiy, in consultation with the Director of the 
National Institute for Occupational Safety and Health, shall conduct 
a comprehensive study of means to reduce hazardous occupational 
lead abatement exposures. This study shall include, at a minimum, 
each of the following— 
"(A) Surveillance and intervention capability in the States 
to identify and prevent hazardous exposures to lead abatement 
workers. 
"(B) Demonstration of lead abatement control methods and 
devices and work practices to identify and prevent hazardous 
lead exposures in the workplace. 
"(C) Evaluation, in consultation with the National Institute 
of Environmental Health Sciences, of health effects of low and 
high levels of occupational lead exposures on reproductive, 
neurological, renal, and cardiovascular health. 
"(D) Identification of high risk occupational settings to 
which prevention activities and resources should be targeted. 
"(E) A study assessing the potential exposures and risks 
from lead to janitorial and custodial workers. 
"(3) The studies described in paragraphs (1) and (2) shall, 
as appropriate, examine the relative contributions to elevated lead 
body burden from each of the following: 
"(A) Drinking water. 
''(B)Food. 
"(C) Lead-based paint and dust from lead-based paint. 
"(D) Exterior sources such as ambient air and lead in 
soil. 
"(E) Occupational exposures, and other exposures that the 
Secretary determines to be appropriate. 
"Reports. 
"(4) ifoi later than 30 months after the date of the enactment 
of this section, the Secretary shall submit a report to the Congress 
concerning the studies described in paragraphs (1) and (2). 
"(d) PUBLIC EDUCATION.—<1) The Administrator, in com'unction 
with the Secretary of Health and Human Services, acting through 
the Director of the Agency for Toxic Substances and Disease Reg-
istry, and in conjunction with the Secretary of Housing and Urban 
Development, shall sponsor public education and outreach activities 
to increase public awareness of— 
"(A) the scope and severity of lead poisoning from household 
sources; 
"(B) potential exposure to sources of lead in schools and 
childhood day care centers; 
"(C) the implications of exposures for men and women, 
particularly those of childbearing age; 
"(D) the need for careful, quality, abatement and manage-
ment actions; 
"(E) the need for universal screening of children; 
"(F) other components of a lead poisoning prevention pro-
gram; 
"(G) the health consequences of lead exposure resulting 
from lead-based paint hazards; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3919 
"(H) risk assessment and inspection methods for lead-based 
p£dnt hazards; and 
**(I) measures to reduce the risk of lead exposure from 
lead-based paint. 
"(2) The activities described in paragraph (1) shall be designed 
to provide educational services and information to— 
"(A) health professionals; 
"(B) the general public, with emphasis on parents of young 
children; 
"(C) homeowners, landlords, and tenants; 
"(D) consumers of home improvement products; 
"(E) the residential real estate industry; and 
"(F) the home renovation industry. 
"(3) In implementing the activities described in paragraph (1), 
the Administrator shall assure coordination with the President's 
Commission on Environmental Quality's education and awareness 
campaign on lead poisoning. 
"(4) The Administrator, in consultation with the Chairman 
of the Consumer Product Safety Commission, shall develop informa-
tion to be distributed by retailers of home improvement products 
to provide consumers with practical information related to the haz-
aros of renovation and remodeling where lead-based paint may 
be present. 
"(e) TECHNICAL ASSISTANCE.— 
"(1) CLEAMNGHOUSE.—Not later than 6 months after the Establishment. 
enactment of this subsection, the Administrator shall establish, 
in consultation with the Secretary of Housing and Urban Devel-
opment and the Director of the Centers for Disease Control, 
a National Clearinghouse on Childhood Lead Poisoning (herein-
after in this section referred to as 'Clearinghouse'). The 
Clearinghouse shall— 
"(A) collect, evaluate, and disseminate current informa-
tion on the assessment and reduction of lead-based paint 
hazards, adverse health effects, sources of exposure, detec-
tion and risk assessment methods, environmental hazards 
abatement, and clean-up standards; 
"(B) maintain a rapid-alert system to inform certified 
lead-based paint activities contractors of significant devel-
opments in research related to lead-based psdnt hazards; 
and 
"(C) perform any other duty that the Administrator 
determines necessary to achieve the purposes of this Act. 
"(2) HOTLINE.—Not later than 6 months after the enact-
ment of this subsection, the Administrator, in cooperation with 
other Federal agencies and with State and local governments, 
shall establish a single lead-based paint hazard hotline to pro-
vide the public with answers to questions about lead poisoning 
prevention and referrals to the Clearinghouse for technical 
information. 
"
(
D PRODUCTS FOR LEAD-BASED PAINT ACTIVITIES.—Not later President. 
than 30 months after the date of enactment of this section, the Regulations. 
President shall, after notice and opportunity for comment, establish 
by rule appropriate criteria, testing protocols, and performance 
characteristics as are necessary to ensure, to the greatest extent 
possible and consistent with the purposes and policy of this title, 
that lead-based paint hazard evaluation and reduction products 
introduced into commerce after a period specified in the rule are 
106 STAT. 3920 
PUBLIC LAW 102-550—OCT. 28, 1992 
effective for the intended use described by the manufacturer. The 
rule shall identify the types or classes of products that are subject 
to such rule. The President, in implementation of the rule, shall, 
to the maximum extent possible, utilize independent testing labinra-
tories, as appropriate, and consult with such entities and others 
in developing the rules. The President may delegate the authorities 
under this subsection to the Environmental Protection Agency or 
the Secretary of Commerce or such other appropriate agency. 
15 use 2686. 
«SEC. 406. LEAD H
A
Z
A
R
D I
N
F
O
R
M
A
T
I
O
N PAMPHLET. 
"(a) LEAD HAZARD INFORMATION PAMPHLET.—Not later than 
2 years after the enactment of this section, after notice and oppor-
tunity for comment, the Administrator of the Environmental Protec-
tion Agenpy, in consultation with the Secretary of Housing and 
Urban Development and with the Secretary of Health and Human 
Services, shall publish, and 
firom 
time to time revise, a lead hazard 
information pamphlet to be used in connection with this title and 
section 1018 of the Residential Lead-Based Paint Hazard Reduction 
Act of 1992. The pamphlet shall— 
"(1) contain information regarding the health risks associ-
ated with exposure to lead; 
"(2) provide information on the presence of lead-based paint 
hazards in federally assisted, federally owned, and target hous-
ing; 
"(3) describe the risks of lead exposure for children under 
6 years of age, pregnant women, women of childbearing age, 
persons involved in home renovation, and others residing in 
a dwelling with lead-based paint hazards; 
"(4) describe Uie risks of renovation in a dwelling with 
lead-based paint hazards; 
"(5) provide information on approved methods for evaluat-
ing and reducing lead-based pamt hazards and their,effec-
tiveness in identifying, reducing, eliminating, or preventing 
exposure to lead-based paint hazards; 
"(6) advise persons how to obtain a list of contractors 
certified pursuant to this title in lead-based paint hazard 
evaluation and reduction in the area in which the pamphlet 
is to be used; 
"(7) state that a risk assessment or inspection for lead-
based paint is recommended prior to the purchase, lease, or 
renovation of target housing; 
"(8) state that certain State and local laws impose addi-
tional requirements related to lead-based paint in housing and 
grovide a listing of Federal, State, and local agencies in each 
tate, including address and telephone number, that can pro-
vide information about applicable laws and available govern-
mental and private assistance and financing; and 
"(9) provide such other information about environmental 
hazards associated with residential real property as the 
Administrator deems appropriate. 
Regulations. 
«(b) R
E
N
O
V
A
T
I
O
N O
F T
A
R
G
E
T HOUSING.—Within 2 years a&et 
the enactment of this section, the Administrator shall promulgate 
regulations under this subsection to require each person who per-
forms for compensation a renovation of target housing to provide 
a lead hazard information pamphlet to the owner and occupant 
of such housing prior to commencing the renovation. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3921 
*8EC. 407. BEGUIATIONS. 
15 USC 2687. 
The regulations of the Administrator under this title shall 
include such recordkeeping and reporting requirements as may 
be necessary to insure the effective implementation of this title. 
The regulations may be amended from time to time as necessary. 
•nSEC. 408. CONTROL OF LEAD-BASED PAINT HAZABD8 AT FEDERAL 15 USC 2688. 
FACnJTIES. 
"Each department, agency, and instrumentality of executive, 
legislative, and judicial branches of the Federal Government (1) 
having jurisdiction over any property or facility, or (2) engaged 
in any activity resulting, or which may result, in a lead-based 
paint hazard, and each officer, agent, or employee thereof, shall 
be subject to, and comply with, all Federal, State, interstate, and 
local requirements, both substantive and procedural (including any 
requirement for certification, licensing, recordkeeping, or reporting 
or any provisions for injunctive relief and such sanctions as may 
be imposed by a court to enforce such relief) respecting lead-based 
paint, lead-based paint activities, and lead-based paint hazards 
in the same manner, and to the same extent as any nongovern-
mental entity is subject to such requirements, including the pay-
ment of reasonable service charges. The Federal, State, interstate, 
and local substantive and procedural requirements referred to in 
this subsection include, but are not limited to, all administrative 
orders and all civil and administrative penalties and fines regard-
less of whether such penalties or fines are punitive or coercive 
in nature, or whether imposed for isolated, intermittent or continu-
ing violations. The United States hereby expressly waives any 
immunity otherwise applicable to the United States with respect 
to any such substantive or procedural requirement (including, but 
not limited to, any ii\junctive relief, administrative order, or civil 
or administrative penalty or fine referred to in the preceding sen-
tence, or reasonable service charge). The reasonable service charges 
referred to in this section include, but are not limited to, fees 
or charges assessed for certification and licensing, as well as any 
other nondiscriminatory charges that are assessed in connection 
with a Federal, State, interstate, or local lead-based paint, lead-
based paint activities, or lead-based paint hazard activities program. 
No agent, employee, or officer of the United States shall be person-
ally liable for any civil penalty under any Federal, State, interstate, 
or local law relating to lead-based paint, lead-based paint activities, 
or lead-based paint hazards with respect to any act or omission 
within the scope of his official duties. 
<^EC. 409. PROHIBITED ACTS. 
15 USC 2689. 
"It shall be imlawful for any person to fail or refuse to comply 
with a provision of this title or with any rule or order issued 
under this title. 
'^EC. 410. RELATIONSHIP TO OTHER FEDERAL LAW. 
15 USC 2690. 
"Nothing in this title shall affect the authority of other appro-
priate Federal agencies to establish or enforce any requirements 
which are at least as stringent as those established pursuant to 
this title. 
106 STAT. 3922 
PUBLIC LAW 102-550—OCT. 28, 1992 
15 use 2691. 
<«EC. 411. GENERAL PROVISIONS RELATING TO ADMINISTRATIVE 
PROCEEDINGS. 
"(a) ApPLlCABiLiTy.—^This section applies to the promulgation 
or revision of any regulation issued under this title. 
"(b) RULEMAKING DOCKET.—Not later than the date of proposal 
of any action to which this section applies, the Administrator shall 
establish a rulemaking docket for such action (hereinafter in this 
subsection referred to as a 'rule'). Whenever a rule applies only 
within a particular State, a second (identical) docket shall be estab-
lished in the appropriate regional office of the Environmental 
Protection Agency. 
"(c) INSPECTION AND COPYING.—(1) The rulemaking docket 
required under subsection (b) shall be open for inspection by the 
public at reasonable times specified in the notice of proposed rule-
making. An^ person mav copy documents contained in the docket. 
The Administrator shall provide copying facilities which may be 
used at the expense of the person seeking copies, but the Adminis-
trator may waive or reduce such expenses in such instances as 
the public interest requires. Any person may request copies by 
mail if the person pays the expenses, including personnel costs 
to do the copying. 
"(2XA) Promptly upon receipt by the agency, all written com-
ments and documentary information on the proposed rule received 
from any person for inclusion in the docket during the comment 
period shall be placed in the docket. The transcript of public hear-
uigs, if any, on the proposed rule shall also be included in the 
docket promptly upon receipt from the person who transcribed 
such hearings. All documents which become available after the 
proposed hue has been published and which the Administrator 
aetermines are of central relevance to the rulemaking shall be 
placed in the docket as soon as possible after their availability. 
"(B) The drafts of proposed rules submitted by the Adminis-
trator to the Office of Management and Budget for any interagency 
review process prior to proposal of any such rule, all docimients 
accompanying such drafts, and all written comments thereon by 
other agencies and all written responses to such written comments 
by the Administrator shall be placed in the docket no later than 
the date of proposal of the rule. The drafts of the final rule submit-
ted for such review process prior to promulgation and all such 
written comments thereon, all documents accompanjdng such drafts, 
and written responses thereto shall be placed in the docket no 
later than the date of promulgation. 
"(d) EXPLANATION.—(1) The promulgated rule shall be accom-
panied by an explanation of the reasons for any major changes 
in the promulgated rule from the proposed rule. 
"(2) The promulgated rule shall also be accompanied by a 
response to each of the significant comments, criticisms, and new 
data submitted in written or oral presentations during the comment 
period. 
"(3) The promulgated rule may not be based (in part or whole) 
on any information or data which has not been placed in the 
docket as of the date of such promulgation. 
"(e) JUDICIAL REVIEW.—The material referred to in subsection 
(cX2XB) shall not be included in the record for judicial review. 
"(f) EFFECTIVE DATE.—^The requirements of this section shall 
take effect with respect to any rule the proposal of which occurs 
after 90 days after the date of the enactment of this section. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3923 
«SEC. 4U. AUTHOBIZATION OF APPROPRIATIONS. 
15 USC 2692. 
There are authorized to be appropriated to carry out the 
purposes of this title such sums as may be necessary.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—The Toxic 
Substances Control Act (16 U.S.C. 2610) is amended as follows: 
(1) In paragraph (1) of section 7(a), strike "or 6" and insert 15 use 2606. 
«6, or title l\r and after -5" insert "or title IV". 
(2) In the first sentence of subsection (a) of section 11: is use 26io. 
(A) Strike "or mixtures" before "are manufactured" and 
insert", nuxtures, or products subject to title IV". 
(B) Insert "such products," before "or such articles". 
(3) In paragraph (1) of subsection (b) of section 11, strike 
"or mixtures" and insert ", mixtures, or products subject to 
title IV". 
(4) in paragraph (1) of section 13(a), strike "or 6" in each 15 use 2612. 
place it appears and insert ", 6, or title IV" and strike "or 
7" and insert", 7 or title IV". 
(5) In section 16, insert "or 409" after "section 15" each 15 use 2615. 
place it appears. 
(6) In section 17, amend subsection (a) to read as follows: 15 use 2616. 
"(a) SPECIFIC ENFORCEMENT.—(1) The district courts of the 
United States shall have jurisdiction over civil actions to— 
"(A) restrain any violation of section 15 or 409, 
"(B) restrain any person 
firom 
taking any action prohibited 
by section 5, 6, or title IV, or by a rule or order under section 
5,6, or title IV, 
"(C) compel the taking of any action required by or under 
this Act, or 
"(D) direct any manufacturer or processor of a chemical 
substance, mixture, or product subject to title IV manufactured 
or processed in violation of section 5, 6, or title IV, or a rule 
or order under section 5, 6, or title TV, and distributed in 
commerce, (i) to give notice of such fact to distributors in 
commerce of such substance, mixture, or product and, to the 
extent reasonably ascertainable, to other persons in possession 
of such substance, mixture, or product or exposed to such 
substance, mixture, or product, (ii) to give public notice of fu^iic 
such risk of iiyury, and (iii) to either replace or repurchase "^"nation-
such substance, nuxture, or product, whicnever the person to 
which the requirement is directed elects.". 
(7) In the first sentence of subsection (b) of section 17— 
(A) strike "or mixture" afl»r "Any chemical substance" 
and inserting ", mixture, or product subject to title IV"; 
and 
(B) insert "product," before "or article" in each place 
that it appears. 
(8) In section 19— 
1
5 use 2618. 
(A) In the first sentence of subsection (a), after "title 
i r insert "or IV". 
(B) Before the semicolon at the end of subsection 
(aX3XB) insert "and in the case of a rule under title IV, 
the 
finding 
required for the issuance of such a rule". 
(9) In section 20(aXl) after "title II" msert "or IV" in 1
5 U
S
C 2619. 
each place it appears. 
(10) Add at the end of the table of contents in section 
1 the following: 
106 STAT. 3924 
PUBLIC LAW 102-550—OCT. 28, 1992 
15 use 2601 
note. 
"TITLE IV—LEAD EXPOSURE REDUCTION 
"Sec. 401. Definitions. 
"Sec. 402. Lead-based paint activities training and certification. 
"Sec. 403. Identification of dangeroiis levels of lead. 
"Sec. 404. Authorized State programs. 
"Sec. 405. Lead abatement and measiirement. 
"Sec. 406. Lead hazard information pamphlet. 
"Sec. 407. Regulations. 
"Sec. 408. Control of lead-based paint hazards at Federal fiadlities. 
"Sec. 409. Prohibited acts. 
"Sec. 410. Relationship to other Federal law. 
"Sec. 411. General provisions relating to administrative proceedings. 
"Sec. 412. Authorization of appropriations.". 
(c) SHORT TITLE.—This subtitle may be cited as the "Lead-
Based Paint Exposure Reduction Act". 
Subtitle C—^Worker Protection 
42 use 4853. 
SEC. 1031. WORKER PROTECTION. 
Regulations. 
Not later than 180 days after the enactment of this Act, the 
Secretary of Labor shall issue an interim final regulation regulating 
occupational exposure to lead in the construction industiy. Such 
interim final regulation shall provide employment and places of 
emplo3mient to employees which are as safe and healthful as those 
which would prevail under the Department of Housing and Urban 
Development guidelines publishea at Federal Register 55, page 
38973 (September 28, 1990) (Revised Chapter 8). Such interim 
final regulations shall take effect upon issuance (except that such 
regulations may include a reasonable delay in the effective date), 
shall have the legal effect of an Occupational Safety and Health 
Standard, and shall apply until a final standard becomes effective 
under section 6 of the Occupational Safety and Health Act of 
1970. 
42 use 4853a. 
SEC. 1032. COORDINATION BETWEEN ENVIRONMENTAL PROTECTION 
AGENCY AND DEPARTMENT OF LABOR. 
The Secretary of Labor, in promulgating regulations imder 
section 1031, shall consult and coordinate with the Administrator 
of the Environmental Protection Agency for the purpose of achieving 
the maximum enforcement of title IV of the Toxic Substances Con-
trol Act and the Occupational Safety and Health Act of 1970 while 
imposing the least burdens of duplicative reqmrements on those 
subject to such title and Act and for other purposes. 
SEC. 1033. NIOSH RESPONSIBILITIES. 
29 use 671. 
Section 22 of the Occupational Safety and Health Act of 1970 
is amended by adding the following new subsection at the end 
thereof: 
"(g) LEAD-BASED PAINT ACTIVITIES.— 
"(1) 
TRAINING GRANT PROGRAM.—(A) The 
Institute, 
in 
conjunction with the Administrator of the Environmental 
Protection Agency, may make grants for the training and edu-
cation of workers and supervisors who are or may be directly 
engaged in lead-based paint activities. 
"(B) Grants referred to in subparap-aph (A) shall be 
awarded to nonprofit organizations (including colleges and 
universities, joint labor-management trust funds. States, and 
nonprofit government employee organizations)— 
"(i) which are engaged in the training and education 
of workers and supervisors who are or who may be directly 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3925 
Appropriation 
authorization. 
Appropriation 
authorization. 
engaged in lead-based paint activities (as defined in title 
IV of the Toxic Substances Control Act), 
"(ii) 
which 
have 
demonstrated 
experience 
in 
implementing and operating health and scuety training 
ana education programs, and 
"(iii) with a demonstrated ability to reach, and involve 
in lead-based paint training programs, target populations 
of individuals who are or will be engagedf in lead-based 
paint activities. 
Grants under this subsection shall be awarded onlv to those 
organizations that fund at least 30 percent of their lead-based 
paint activities training programs from non-Federal sources, 
excluding in-kind contributions. Grants may^ also be made to 
local governments to carry out such training and education 
for their employees. 
"(C) There are authorized to be appropriated, at a mini-
mum, $10,000,000 to the Institute for each of the fiscal years 
1994 through 1997 to make grants under this paragraph. 
"(2) EVALUATION OF PROGRAMS.—The Institute shall con-
duct periodic and comprehensive assessments of the efficacy 
of the worker and supervisor training pro-ams developed and 
offered by those receiving grants under this section. The Direc-
tor shall prepare reports on the results of these assessments 
addressed to the Administrator of the Environmental Protection 
Agency to include recommendations as may be appropriate 
for the revision of these programs. The sum of $500,000 is 
authorized to be appropriated to the Institute for each of the 
fiscal years 1994 through 1997 to carry out this paragraph.". 
Subtitle D—^Research and Development 
PART 1—HUD RESEARCH 
SEC. 1061. RESEARCH ON LEAD EXPOSURE FROM OTHER SOURCES. 42 USC 4854. 
The Secretary, in cooperation with other Federal agencies, shall 
conduct research on strategies to reduce the risk of lead exposure 
from other sources, including exterior soil and interior lead dust 
in carpets, furniture, and forced air ducts. 
SEC. 1052. TESTING TECHNOLOGIES. 
42 USC 4854a. 
The Secretary, in cooperation with other Federal agencies, shall 
conduct research to— 
(1) develop improved methods for evaluating lead-based 
paint hazards m housing; 
(2) develop improved methods for reducing lead-based paint 
hazards in housing; 
(3) develop improved methods for measuring lead in paint 
films, dust, and soil samples; 
(4) establish performance standards for various detection 
methods, including spot test kits; 
(5) establish performance standards for lead-based paint 
hazard reduction methods, including the use of encapsulants; 
(6) establish appropriate cleanup standards; 
(7) evaluate the efficacy of interim controls in various haz-
ard situations; 
(8) evaluate the relative performance of various abatement 
techniques; 
106 STAT. 3926 
PUBLIC LAW 102-550—OCT. 28, 1992 
(9) evaluate the long-term cost-effectiveness of interim con-
trol and abatement strategies; and 
(10) assess the efife^iveness of hazard evaluation and 
reduction activities funded by this Act. 
42 use 4854b. 
SEC. 10S3. AUTHORIZATION. 
Of the total amoimt approved in appropriation Acts under 
section 101 l(o), there shall oe set aside to cany out this ps^ 
$5,000,000 for fiscal year 1993, and $5,000,000 for fiscal year 1994. 
PART 2--GAO REPORT 
42 use 4855. 
SEC. 10S6. FEDERAL IMPLEMENTATION AND INSURANCE STUDY. 
(a) FEDERAL IMPLEMENTATION STUDY.—The Comptroller Gen-
eral of the United Stetes shall assess the effectiveness of Federal 
enforcement and compliance with lead safety laws and regulations, 
including anv changes needed in annual inspection procedures to 
identify lead-based paint hazards in units receiving assistance 
under subsections (b) and (o) of section 8 of the United States 
Housing Act of 1937. 
(b) INSURANCE STUDY.—The Comptroller General of the United 
Stetes shall assess the availability of liability insurance for owners 
of residential housing that contains lead-based paint and persons 
engaged in lead-based paint hazard evaluation and reduction activi-
ties. In carrying out the assessment, the Comptroller General 
shall— 
(1) analyze any precedente in the insurance industry for 
the conteinment and abatement of environmentel hazards, such 
as asbestos, in federally assisted housing; 
(2) provide an assessment of the recent insurance experi-
ence in the public housing lead hazard identification and reduc-
tion program; and 
(3) recommend measures for increasing the availability of 
liability insurance to owners and contractors engaged in feder-
ally supported work. 
Subtitle E—Reports 
42 use 4856. 
SEC. 1061. REPORTS OF THE SECRETARY OF HOUSING AND URBAN 
DEVELOPMENT. 
(a) ANNUAL REPORT.—^The Secretary shall transmit to the Con-
gress an annual report that— 
(1) sete forth the Secretary's assessment of the progress 
made in implementing the various programs authorized by 
this title; 
(2) summarizes the most current health and environmental 
studies on childhood lead poisoning, including studies that ana-
lyze the relationship between interim control and abatement 
activities and the incidence of lead poisoning in resident chil-
dren; 
(3) recommends legislative and administrative initiatives 
that may improve the performance by the Department of Hous-
ing and Urban Development in combating lead hazards through 
the expansion of lead hazard evaluation and reduction activi-
ties; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3927 
(4) describes the results of research carried out in accord-
ance with subtitle D; and 
(5) estimates the amount of Federal assistance annually 
expended on lead hazard evaluation and reduction activities. 
(b) BIENNIAL REPORT.— 
(1) IN GENERAL.—24 months after the date of enactment 
of this Act, and at the end of every 24-month period thereafter, 
the Secretary shall report to the Congress on the progress 
of the Department of Housing and Lh*ban Development in 
implementing expanded lead-based paint hazard evaluation and 
reduction activities. 
(2) CONTENTS.—The report shall— 
(A) assess the effectiveness of section 1018 in making 
the public aware of lead-based paint hazards; 
(B) estimate the extent to which lead-based paint haz-
ard evaluation and reduction activities are being conducted 
in the various categories of housing; 
(C) monitor and report expenditures for lead-based 
paint hazard evaluation and reduction for programs within 
the jurisdiction of the Department of Housing and Urban 
Development; 
(D) identify the infrastructure needed to eliminate 
lead-based paint hazards in all housing as expeditiously 
as possible, including cost-effective technology, standards 
and regulations, trained and certified contractors, certified 
laboratories, liability insurance, private financing tech-
niques, and appropriate Government subsidies; 
(E) assess the extent to which the infrastructure 
described in subparagraph (D) exists, make recommenda-
tions to correct shortcomings, and provide estimates of 
the costs of measures needed to build an adequate infra-
structure; and 
(F) include any additional information that the Sec-
retary deems appropriate. 
TITLE XI—NEW TOWNS DEMONSTRA-
TION PROGRAM FOR EMERGENCY RE-
LIEF OF LOS ANGELES 
SEC. 1101. AUTHORITY. 
To provide for the revitalization and renewal of inner city 
neighborhoods in the areas of Los Angeles, California, that were 
damaged by the civil disturbances during April and May of 1992, 
and to demonstrate the effectiveness otnew town developments 
in revitalizing and restoring depressed and underprivileged inner 
city neighborhoods, the Secretary of Housing and Urban Develop-
ment shall, to the extent or in such amounts as are provided 
in appropriation Acts, make any assistance authorized under this 
title available under this title to units of general local government, 
governing boards, and eligible mortgagors in accordance with the 
provisions of this title. 
SEC. 1102. NEW TOWN PLAN. 
(a) REQUIREMENT.—^The Secretary may make assistance avail-
able under this title only in connection with, and according to 
California. 
42 use 5318 
note. 
59-194 
O—93 
10 : QL 3 (Pt. 5) 
106 STAT. 3928 
PUBLIC LAW 102-550—OCT. 28, 1992 
the provisions of a new town plan developed and established by 
a governing board under section 1107 and approved iinder sub-
section (d) of this section. In developing such plans, the governing 
board shall consult with representatives of tne units of general 
local government within whose boundaries are located any portion 
of the new town demonstration area for the demonstration program 
to be carried out under such plan. 
(b) ELIGIBLE NEW TOWN DEMONSTRATION AREAS.—A new town 
plan under this section shall provide for carrying out a new town 
development demonstration providing assistance available under 
this title within a new town demonstration area, which shall be 
a geographic area defined in the new town plan— 
(1) that is one of pervasive poverty, unemployment, and 
general distress; 
(2) that has an imemployment rate of not less than 1.5 
times the national unemployment rate for tlie 2 years preceding 
approval of the new town plan; 
(3) that has a poverty rate of not less than 20 percent 
during such 2-year period; 
(4) for wluch not less than 70 percent of the households 
living in the area have incomes below 80 percent of the median 
income of households of the unit of general local government 
in which they are located; 
(5) that has a shortage of adequate jobs for residents; 
and 
(6) that is located— 
(A) in or near the City or County of Los Angeles, 
in the State of California; and 
(B) within an area for which the President, pursuant 
to title IV or V of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act, declared that a miyor disas-
ter or emergency existed for purposes of such Act, as a 
result of the civil disturbances involving acts of violence 
occurring on or after April 29, 1992, and before May 6, 
1992. 
(c) CONTENTS.—^Each new town plan shall include the following 
information: 
(1) GOVERNING BOARD.—^A description of the members and 
purposes of the governing board that developed the plan, the 
manner in which members of the governing boiard were selected, 
and the businesses, agencies, interests, and commimity ties 
of each member of the governing board. 
(2) NEW TOWN DEMONSTRATION AREA.—A definition and 
description of the new town demonstration area for the new 
town development demonstration to be assisted under this title. 
(3) TARGET COMMUNITY.—A description of the economic, 
social, racial, and ethnic characteristics of the population of 
the neighborhood or area in which the new town demonstration 
area is located. 
(4) AGREEMENTS.—Agreements that the governing board 
will cany out the new town demonstration program in accord-
ance with tiie requirements of this title. 
(5) HOUSING UNITS.—A description of the number, size, 
location, cost, style, and characteristics of rental and 
homeownership housing units to be developed under the new 
town demonstration program, any 
financing 
for developing such 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3929 
housing, and the amount of assistance necessary under section 
1105 for developing the housing under the program. 
(6) JOBS.—^A description of the number, types, and duration 
of any new jobs that will be created in the new town dem-
onstration area and surroimding areas as a result of the 
demonstration program, and of any job training activities and 
apprenticeship programs to be made available in connection 
with the program. 
(7) SOCIAL SERVICES.—^A description of the social and 
supportive services to be made available under the demonstra-
tion program to residents of housing assisted under the dem-
onstration program pursuant to section 1103(d) and to residents 
of the new town demonstration area. 
(8) SUPPLEMENT.\L RESOURCES.—A description of any funds, 
assistance, in-kind contributions, and other resources to be 
made available in connection with the demonstration program, 
including the sources and amounts of any private capital 
resources and non-Federal fluids required imder section 
1103(h). 
(9) CONTRACTORS AND DEVELOPERS.—A listing of the con-
tractors and developers who potentially will carry out any 
construction and rehabilitation work for development of housing 
under the demonstration program and the expected costs 
involved in hiring such contractors and developers. 
(10) FINANCING FOR HOMEBUYERS.—A description of any 
mortgage lenders who have indicated that they will make 
financing available to families purchasing housing developed 
imder the demonstration program through mortgages eligible 
for insurance under section 1104 and proposed terms of such 
mortgages. 
(11) COMMITMENTS.—Evidence of any commitments entered 
into for meiking any of the resources described in paragraphs 
(6) through (8) available in connection with the demonstration 
program. 
(12) PRESALE REQUIREMENTS.—A description of commit-
ments made to purchase not less than 50 percent of the housing 
to be developed imder the demonstration program for purchase 
by the occupant and to rent not less than 50 percent of the 
rental dwelling units to be developed under the demonstration 
program. 
(13) COMMUNITY DEVELOPMENT ACTIVITIES.-A description 
of the community development activities to be carried out with 
assistance under section 1106, the amount of assistance nec-
essary under such section for such activities, and of the pro-
jectea uses of such assistance. 
(d) REVIEW AND APPROVAL.— 
(1) SUBMISSION.—Not later than the expiration of the 6-
month period beginning on the date of the enactment of this 
Act, a governing board shall submit a new town plan under 
this section to the chief executive officers of each unit of genersd 
local government within whose boundaries is located any por-
tion of the new to^n demonstration area described under the 
plan of the board. 
(2) APPROVAL.—^For a plan to be eligible for assistance 
available imder this title, the chief executive officer of all units 
of general local government to whom the new town plan is 
submitted shall approve the plan at a public meeting after 
106 STAT. 3930 
PUBLIC LAW 102-550—OCT. 28, 1992 
the plan has been made publicly available for a period of 
not less than 30 days. A governing board may resubmit for 
approval any plan returned by any such chief executive officer 
to the govemmg board, and such chief executive officer may, 
upon returning the plan indicate any modifications necessary 
for approval. A new town plan may not be approved unless 
such cnief executive officers determine that the membership 
of the governing board submitting the plan is constituted in 
accordance with section 1107 and the governing board is 
capable of carrying out the plan. 
(3) AMENDMENT.—An approved new town plan for the dem-
onstration program developed by the governing board may be 
amended by the board by obtaining approval of the amendment 
in the manner provided under tnis subsection for approval 
of plans. If the chief executive officer of the unit of general 
local government does not approve or return the amend^ plan 
within 30 days of submission, the amended plan shall be consid-
ered to be approved for purposes of this subsection. 
SEC. 1108. NEW TOWN DEVELOPMENT DEMONSTRATION PROGRAM 
REQUIREMENTS. 
(a) IN GENERAL.—^Each of the 2 new tovm development dem-
onstration programs selected for assistance under this title under 
section 1102 shall be carried out, by the governing board submitting 
the new town plan for the demonstration program, in accordance 
with such plan (and any approved amendments of such plans) 
and shall be subject to the requirements under this section. 
(b) LOCAL PARTICIPATION.—^With respect to any activities car-
ried out under the demonstration program, the program shall give 
preference in awarding contracts, purchasing materials, acquiring 
services, and obtaining assistance or training, to contractors, 
businesses, developers, professionals, and other establishments 
located or having offices within the new town demonstration area. 
(c) HOUSING.— 
(1) NUMBER OF UNITS.—^The demonstration program shall 
construct or renovate not less than 1,500 dwelling imits in 
the new town demonstration area, of which not less than 60 
percent shall be units available for purchase by the occupant. 
(2) AFFORDABiLnY.—^Units of varying sizes and costs shall 
be designed and developed under the demonstration program 
so that the program provides housing affordable to families 
of varying incomes not exceeding 115 percent of the median 
income for the area in which the new town demonstration 
area is located, including very low- and low-income families 
(as such terms are defined in section 3(b) of the United States 
Housing Act of 1937). 
(3) H
O
M
E
O
W
N
E
R
S
m
P UNITS.—^Dwelling units developed 
under the demonstration program for purchase by the occupant 
shall initially be sold at prices affordable to families eligible 
to purchase such units. Such units shall be available for pur-
chfuse only^ by families having incomes not exceeding the amount 
spedfied in paragraph (2). The demonstration snail develop 
2-, 3-, and 4-bedroom units for purchase. 
(4) RENTAL UNITS.—^Dwelling units developed under the 
demonstration program that are to be available for rental shall 
include family-type units and single bedroom and efficiencr^ 
units designed for elderly occupants. Such units shall be avail-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3931 
able for occupancy only by families who (upon initial occupancy) 
have incomes of (A) less than 60 percent of the median income 
for the area, or (B) less than $20,000. Occupant families shall 
pay not more than 30 percent of the family income for rent. 
(d) SOCIAL SERVICES.—^The demonstration program shall pro-
vide for appropriate social and supportive services to be made 
available to residents of housing assisted under the demonstration 
program and to other residents of the new town demonstration 
area, which may include rental and homeownership counseling, 
child care, job placement, educational programs, recreational and 
health care facilities and programs, and other appropriate services. 
(e) JOB CREATION AND TRAINING.—^The demonstration program 
shall provide, to the extent practicable, that activities in connection 
with the demonstration program, including development of housing 
under subsection (c) and community development activities assisted 
under section 1106, shall employ and provide job training opportimi-
ties for residents of the housing assisted under the demonstration 
program and other residents of the new town demonstration area. 
(f) FINANCING.—^The demonstration program shall provide for 
coordination with banks, credit unions, and other mortgage lenders 
to make financing available to purchasers of units developed under 
the demonstration program through mortgages eligible for insurance 
under section 1104, and shall give preference to such mortgage 
lenders who have offices located within or near the new town 
demonstration area. 
(g) SUPPORT FACILITIES.—The demonstration program shall 
encourage, facilitate, and provide for development of appropriate 
support facilities to serve residents in the housing developed under 
the program, including infrastructure and commercial facilities. 
(n) NON-FEDERAL FtJNDS.—^The governing board carrying out 
the demonstration program shall ensure that not less than 25 
percent of the total amounts used to carry out the demonstration 
f
)rogram is provided from non-Federal sources, including State or 
ocal government funds, any salary paid to staff to carry out the 
demonstration program, the value of any time, services, and mate-
rials donated to carry out the program, the value of any donated 
building, and the value of any lease on a building. 
SEC. 1104. FEDERAL MORTGAGE INSURANCE. 
(a) IN GENERAL.—^Pursuant to title II and section 251 of the 
National Housing Act, the Secretary shall (to the extent authority 
is available pursuant to subsection (d)) insure mortgages under 
this section involving properties upon which are located dwelling 
units described in section 1103(cX3) of this Act that are developed 
under the new town demonstration programs carried out pursuant 
to this title. 
(b) MORTGAGE TERMS.—^Mortgages insured under this section 
shall— 
(1) provide for periodic adjustments in the effective rate 
ofinterest charged, which— 
(A) for the first 5 years of the mortgage, shall be 
an annual rate of not more than 7 percent; and 
(B) after the expiration of such 5-year period, may 
increase on an annual basis, but— 
(i) shall be limiteid, with respect to any single 
interest rate increase, to not more than a 10-percent 
increase in the annual percentage rate; and 
106 STAT. 3932 
PUBLIC LAW 102-550—OCT. 28, 1992 
(ii) may not be increased at any time to a rate 
greater than the rate necessary at such time to fully 
amortize the outstanding loan balance over the term 
of the mortgage; and 
(2) have a maturity of 35 years firom the date of the 
beginning of the amortization of the mortgage. 
(c) BOARD APPROVAL.—^The Secretary may provide insurance 
under this section for a mortgage only if the governing board 
for the demonstration program for the new town demonstration 
area in which the property subject to the mortgage is located 
has indicated to the Secretary approval of the mortage in connec-
tion with the demonstration program. 
(d) INSURANCE AUTHORITY.—To the extent provided in appro-
priation Acts, the Secretary shall use any authority provided pursu-
ant to section 531(b) of the National Housing Act to enter into 
commitments to insiire loans and mortgages under this section 
in fiscal years 1993 and 1994 with an aggregate principcQ amount 
not exceeding such sums as may be necessary to carry out the 
demonstration imder this title. Mortgages insiu'ed under this section 
shall not be considered for purposes of the aggregate limitation 
on the number of mortgages insured imder section 251 of the 
National Housing Act specified in subsection (c) of such section. 
SEC. IIOS. SECONDARY SOFT MORTGAGE FINANCING FOR HOUSING. 
(a) IN GENERAL.—^The Secretary shall, to the extent amounts 
are provided in appropriation Acts imder subsection (e), provide 
assistance imder this section through the governing boards carrying 
out the new town demonstration programs under this section to 
assist in the development of housing under the program. 
(b) USE.—^Any assistance provided imder this section shall be 
used only for costs in planning, developing, constructing, and 
rehabilitating housing imder the demonstration program available 
for rental or purchase by the occupant. The governing board shall 
determine, according to the new town plan for the demonstration 
program, the allocation of amounts of assistance provided under 
this section. 
(c) AMOUNT.—^The Secretary may not provide assistance under 
this section for the development of housing under a demonstration 
program in an amount exceeding $50,000 per dwelling unit assisted. 
(d) SECOND MORTGAGE.— 
(1) IN GENERAL.—^Assistance under this section shall be 
repaid in accordance with this subsection. Repayment of the 
amount of any assistance provided with respect t o ^ 
(A) any building containing rental units, or 
(B) any dwelling unit available for purchase by the 
occupant that is developed under a demonstration program, 
shall be secured by a second mortgage held by the Secretary 
on the property involved. 
(2) TERMS.—During the period ending upon repayment of 
the assistance as provided in this subsection, any building 
containing rental units that is provided assistance under this 
section shall be used as rental nousing subject to the require-
ments of section 1103(cX4). During the period ending upon 
repa3anent of the assistance as provided in this subsection, 
any dwelling unit made available for purchase by the occupant 
that is provided assistance under tnis section may be sold 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3933 
only to a fcLinily having an income not exceeding the amount 
specified in section 1103(cX2). 
(3) INTEREST.—Any assistance provided under this section 
for a building or dwelling unit shall bear interest at a rate 
equivalent to the rate for the most recently marketable obliga-
tions issued by the United States Treasury have terms of 
10 years. The interest on such assistance shall be required 
to be repaid only upon s£de of the building. 
(4) DISCOUNTED REPAYMENT.—The assistance provided 
under this section for any building containing rental units 
or any dwelling unit available for purchase by the occupant 
shall be considered to have been repaid for purposes of this 
subsection if the original purchaser of the building or the dwell-
ing unit pays to the Secretary an amount equal to 50 percent 
of the amount of the assistance provided under this section. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for fiscal years 1993 and 1994 such sums as 
may be necessary for providing assistance under this section. 
SEC. 1106. COMMUNITY DEVELOPMENT ASSISTANCE. 
(a) IN GENERAL.—^Tlie Secretary shall provide assistance under 
this section, to the extent amounts are provided in appropriation 
Acts under subsection (h), to units of general local government 
to address vital unmet needs and to promote the creation of jobs 
and economic development in connection with the new town dem-
onstration programs canied out under this title. 
(b) EuGiBLE UNITS OF GENERAL LOCAL GOVERNMENT.—Assist-
ance may be provided imder this section only to units of general 
local government— 
(1) within whose boundaries are located any portion of 
the new town demonstration areas described under the new 
town demonstration plans for the demonstration programs car-
ried out under this title; 
(2) that make the certifications to the Secretary required 
under subsection (c); and 
(3) that will comply with a residential antidisplacement 
and relocation assist;ance plan described in subsection (d). 
(c) REQUIRED CERTIFICATIONS.—The certifications referred to 
in subsection (bX2) shall be certifications that— 
(1) the assistance will be conducted and administered in 
conformity with the Civil Rights Act of 1964 and the Civil 
Rights Act of 1968, and the unit of general local government 
will affirmatively further fair housing; 
(2) the project(id use of funds has been developed in a 
manner that gives maximum feasible priority to activities which 
are designed to meet commimity development needs that have 
been delayed because of the lack of fiscal resources of the 
unit of general local government or which are designed to 
address conditions that pose a serious and immediate threat 
to the health or welfare 01 the community; 
(3) any projected use of funds for public services will benefit 
primarily low- and moderate-income families; 
(4) the unit of general local government will not attempt 
to recover any capital costs of public improvements assisted 
in whole or part under this section by assessing any amount 
against properties owned and occupied by persons of low- and 
moderate-income, including any fee charged or assessment 
106 STAT. 3934 
PUBLIC LAW 102-550—OCT. 28, 1992 
made as a condition of obtaining access to such public improve-
ments, unless— 
(A) funds received under this section are used to pay 
the proportion of such fee or assessment that relates to 
the capital costs of such public improvements that are 
financed from revenue sources other than under this sec-
tion; or 
(B) for purposes of assessing any amount against prop-
erties owned and occupied by persons of moderate income, 
the grantee certifies to the Secretary that it lacks sufficient 
fimds received under this section to comply with the 
requirements of subparagraph (A); and 
(5) the unit of general local government will comply with 
the other provisions of this title and with other applicable 
laws, 
(d) A^^^DISPLACEME^^^ AND RELOCATION PLAN.— 
(1) 
CONTENTS.—^The residential antidisplacement 
and 
relocation assistence plan referred to in subsection (b)(3) shall, 
in connection with activities assisted under this section— 
(A) provide that, in the event of such displacement— 
(i) govemmentel agencies or private developers 
shall provide, within the same commimity, comparable 
replacement dwellings for the same number of occu-
pants as could have been housed in the occupied and 
vacant occupiable low- and moderate-income dwelling 
imits demolished or converted to a use other than 
for housing for low- and moderate-income persons, and 
provide that such replacement housing may include 
existing housing assisted with project based assistance 
provided under section 8 of the United Stetes Housing 
Act of 1937; 
(ii) such comparable replacement dwellings shall 
be designed to remain affordable to persons of low-
and moderate-income for 10 years from the time of 
initial occupancy; 
(iii) relocation benefits shall be provided for all 
low- or moderate-income persons who occupied housing 
demolished or converted to a use other than for low-
or moderate-income housing, including reimbursement 
for actual and reasonable moving expenses, security 
deposits, credit checks, and other moving-related 
expenses, including any interim living costs; and in 
the case of displaced persons of low- and moderate-
income, provide either— 
(I) compensation sufficient to ensure that, for 
a 5-year period, the displaced families shall not 
bear, after relocation, a ratio of shelter coste to 
income that exceeds 30 percent; or 
(II) if elected by a family, a lump-sum payment 
equal to the capitelized value of the benefits avail-
able under subclause (I) to permit the household 
to secure participation in a housing cooperative 
or mutual housing association; and 
(iv) persons displaced shall be relocated into com-
parable replacement housing that is— 
(I) decent, safe, and sanitery; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3935 
(II) adequate in size to accommodate the occu-
pants; 
(III) functionally equivalent; and 
(IV) in an area not subject to unreasonably 
adverse environmental conditions; and 
(B) provide tliat persons displaced shall have the right 
to elect, as an alternative to the benefits under this sub-
section, to receive benefits imder the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 
1970 if such persons determine mat it is in their best 
interest to do so; and 
(C) provide that where a claim for assistance under 
subparagraph (AXiv) is denied by the unit of general local 
government, the claimant may appeal to the Secretary, 
and that the decision of the Secretary shall be final unless 
a court determines the decision was arbitrary and capri-
cious. 
(2) EXCEPTION.—Paragraphs (IXAXi) and (IXAXii) shall 
not apply in any case in which the Secretary finds, on the 
basis of objective data, that there is available in the area 
an adequate supply of habitable affordable housing for low-
and moderate-income persons. A determination under this para-
graph shall be final and nonreviewable. 
(e) ELIGIBLE ACTIVITIES.—^Activities assisted with amounts pro-
vided under this section may include only the following activities: 
(1) ACQUISITION OF REAL PROPERTY.—The acquisition of 
real property (including air rights, water rights, and other 
interests therein) that is located within the new town dem-
onstration area and is— 
(A) blighted, deteriorated, imdeveloped, or inappropri-
ately developed from the standpoint of sound community 
development and growth; 
(B) appropriate for rehabilitation activities; 
(C) appropriate for the preservation or restoration of 
historic sites, the beautification of urban land, the con-
servation of open spaces, natural resources, and scenic 
areas, the provision of recreational opportunities, or the 
guidance of urban development; 
(D) to be used for the provision of public works, facili-
ties, and improvements eligible for assistance imder this 
section; 
(E) to be used as a facility for coordinating and provid-
ing activities and services for high risk youth (as such 
term is defined in section 509A of the Public Health Service 
Act); or 
(F) to be used for other public purposes. 
(2) CONSTRUCTION OF PUBLIC WORKS AND FACILITIES.—The 
acquisition, construction, rehabilitation, or installation of public 
works or public facilities within the new town demonstration 
area, including buildings for the general conduct of government 
and facilities for coordinating ana providing activities and serv-
ices for high risk youth (as such term is defined in section 
509A of the Public Health Service Act). 
(3) CLEARANCE AND REHABILITATION OF BUILDINGS.—The 
clearance, removal, and rehabilitation of buildings and improve-
ments located within the new town demonstration area, includ-
ing interim assistance, assistance for facilities for coordinating 
106 STAT. 3936 
PUBLIC LAW 102-550—OCT. 28, 1992 
and providing activities and services for high risk youth (as 
such term is defined in section 509A of tine Public Health 
Service Act), and assistance to privately owned buildings and 
improvements. 
(4) PROVISION OF PUBUC SERVICES AND HOUSING.— 
(A) PUBLIC SERVICES.—^The provision of public services 
within the new town demonstration area that are concerned 
with job training and retraining, health care and education, 
crime prevention, drug abuse treatment and rehabilitation, 
child care, education, and recreation, which may include 
the provision of public health andpublic safety vehicles. 
(B) 
HOUSING 
AcnvmES.—The 
acquisition and 
rehabilitation of housing for low- and moderate-income 
families within the new town demonstration area, except 
that any grantee that uses amounts received under this 
section for housing activities under this subparagraph shall 
make not less than 15 percent of the amount used for 
such housing activities available only for community hous-
ing development organizations and nonprofit organizations 
(as such terms are defined in section 104 of the Cranston-
Gonzalez National Affordable Housing Act) for such activi-
ties; 
(C) LIMITATION.—^Not more than 25 percent of the 
amount of any assistance provided under this section 
(including program income) to any unit of general local 
government may be used for activities under this para-
graph. 
(5) RELOCATION ASSISTANCE.—Relocation payments and 
assistance for individuals, families, business, and organizations 
that are displaced as a result of activities assisted under this 
title. 
(6) PAYMENT OF ADMINISTRATIVE EXPENSES.—Payment of 
reasonable administrative costs associated with activities 
assisted under this section and any expenses of developing 
the new town plan under section 1102. 
(0 ALLOCATION OF ASSISTANCE.—The Secretary mav not provide 
more than 50 percent of any amounts appropriated imder this 
section in connection with any one of the 2 new town demonstration 
programs carried out under this title. 
(g) OTHER REQUIREMENTS.—The provisions of subsections (f), 
(g), and (h) of section 104, subsections (c) and (d) of section 105, 
section 107, 108, 109, and 110 of the bill, H.R. 4073, 102d Congress 
(as reported on March 14, 1992, l^ the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives), shsul 
apply 
to 
grantees receiving assistance imder this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for fiscal years 1993 and 1994 such sums as 
may be necessaiy for assistance under this section. 
SEC. 1107. GOVERNING BOARDS. 
(a) PURPOSE.—^For purposes of this title, a governing board 
shall be a board organized for the purpose of developing a new 
town plan under this title and carrying out a new town development 
demonstration under this title. 
(b) MEMBERSHIP.—^Each governing board shall consist of not 
less tlian 10 members, who sh^l include— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3937 
(1) residents of the area in which the new town demonstra-
tion area under the plan developed by the board is located; 
(2) owners of business in such area; 
(3) leaders or participants in community groups in such 
area; and 
(4) representatives of financial institutions located or hav-
ing offices in such area. 
(c) ORGANIZATION.—^A governing board may organize itself and 
conduct business in the manner that the board determines is appro-
priate to carry out the new town development demonstration under 
this title. 
SEC. 1108. REPORTS. 
Each governing board carrying out a new town development 
demonstration imder this title shall submit to the Congress the 
following information: 
(1) NEW TOWN PLAN.—^Upon approval of the new town 
plan of the governing board under section 1102(d), a copy 
of the approved plan. 
(2) ANNUAL REPORTS.—For the 5-year period beginning 
upon the approval of the new town plan, annual reports for 
each 12-month period during such 5-year period, which shall 
be submitted within 3 months after the expiration of the 12-
month period. Each report shall include a description of any 
activities during such period to carry out the demonstration 
program of the governing board, the use during such period 
of any assistance provided under this title, and any amend-
ments under section 1102(dX4) to the new town plan approved 
during such period. 
SEC. 1109. DEFINrnONS. 
For purposes of this title: 
(1) DEMONSTRATION PROGRAM.—The terms "demonstration 
program" and "program" mean a new town development dem-
onstration program receiving assistance under this title, which 
is carried out within a new town demonstration area by a 
governing board. 
(2) (^VERNING BOARD.—^The term "governing board" means 
a board established under section 1107. 
(3) NEW TOWN DEMONSTRATION AREA.—The term "new town 
demonstration area" means the area defined in a new town 
plan in which the new town development demonstration imder 
the plan is to be carried out. 
(4) NEW TOWN PLAN.—The terms "new town plan" and 
"plan" mean a plan under section 1102 developed by a governing 
board. 
(5) UNIT OF GENERAL LOCAL GOVERNMENT.^The term "unit 
of general local government" means any city, county, town, 
township, parish, village, or other general piupose political 
subdivision of the State of California. 
106 STAT. 3938 
PUBLIC LAW 102-550—OCT. 28, 1992 
Removal of 
Regulatory 
Barriers to 
Affordable 
Housing Act of 
1992. 
Inter-
governmental 
relations. 
42 use 12705a 
note. 
42 use 12705a. 
42 use 12705b. 
42 use 12705c. 
TITLE XII—REMOVAL OF REGULATORY 
BARRIERS TO AFFORDABLE HOUSING 
SEC. 1201. SHORT TITLE. 
This title may be cited as the liemoval of Regulatory Barriers 
to Affordable Housing Act of 1992". 
SEC. 1202. PURPOSES. 
The purposes of this title are— 
(1) to encourage State and local governments to further 
identify and remove regulatory barriers to affordable hoiising 
(including barriers that are excessive, unnecessary, duplicative, 
or exclusionary) that significantly increase housing costs and 
limit the supply of affordable housing; and 
(2) to strengthen the connection between Federal housing 
assistance and state and local efforts to identify and eliminate 
regulatory barriers. 
SEC. 1203. DEFINITION OF REGULATORY BARRIERS TO AFFORDABLE 
HOUSING. 
For purposes of this title, the terms "regulatory barriers to 
affordable housing" and "regulatory barriers" mean any public poli-
cies (including policies embodied in statutes, ordinances, regula-
tions, or administrative procedures or processes) required to be 
identified by a jurisdiction in connection with its comprehensive 
housing affordability strategy under section 105(bX4) of the Cran-
ston-Gronzalez National Affordable Housing Act. Such terms do not 
include policies relating to rents imposed on a structure by a juris-
diction or policies that have servea to create or preserve, or can 
be shown to create or preserve, housing for low- and very low-
income families, including displacement protections, demolition 
controls, replacement housing requirements, relocation benefits, 
housing trust funds, dedicated funding sources, waiver of local 
property taxes and builder fees, inclusionary zoning, rental zoning 
overlays, long-term use restrictions, and rights of first refusal. 
SEC. 1204. GRANTS FOR REGULATORY BARRIER REMOVAL STRATE-
GIES AND IMPLEMENTATION. 
(a) IN GENERAL.—^The amounts set aside under section 107 
of the Housing and Community Development Act of 1974 for the 
purpose of this subsection shall be available for grants under sub-
section (b) and (c). 
(b) STATE GRANTS.—^The Secretary ra&y make grants to States 
for the costs of developing and implementmg strategies to remove 
regulatory barriers to affordable housing, including the costs of— 
(1) identifying, assessing, and monitoring State and local 
regulatonr barriers; 
(2) identifying State and local policies (including laws and 
regulations) that permit or encourage regulatory barriers; 
(3) developing legislation to provide a State program to 
reduce State and local regulatory barriers and developing a 
strategy for adoption of such legislation; 
(4) developmg model State standards and ordinances to 
reduce regulatory barriers and assisting in the adoption and 
use of the standards and ordinances; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3939 
(5) carrying out the simplification and consolidation of State 
administrative procedures and processes constituting regulatory 
barriers to affordable housing, including the issuance of per-
mits; and 
(6) providing technical assistance and information to units 
of general local government for implementation of legislative 
and administrative reform programs to remove regulatory bar-
riers to affordable housing. 
(c) LOCAL GRANTS.—The Secretary may make grants to units 
of general local government for the costs of enveloping and 
implementing strategies to remove regulatory barriers to affordable 
housing, including the costs of— 
(1) identifying, assessing, and monitoring local regulatory 
barriers; 
(2) identifying local policies (including laws and regula-
tions) that permit or encourage regulatory barriers; 
(3) developing legislation to provide a local program to 
reduce local regulatory barriers and developing a strategy for 
adoption of such legislation; 
(4) developing model local standards and ordinances to 
reduce regulatory barriers and assisting in the adoption and 
use of the standards and ordinances; and 
(5) carrying out the simplification and consolidation of local 
administrative procedures and processes constituting regulatory 
barriers to affordable housing, including the issuance of 
permits. 
(d) DEFINITION.—For purposes of this section, the terms "regu-
latory barriers to affordable housing" and "regulatory barriers" 
have the meaning given such terms in section 1203. 
(e) APPLICATION AND SELECTION.—The Secretary shall provide 
for the form and manner of applications for grants imder this 
section, which shall describe how grant amounts will assist the 
State or unit of general local government in developing and 
implementing strategies to remove regulatory barriers to affordable 
housing. The Secretary shall establish criteria for approval of 
applications imder this subsection and for the selection of imits 
of general local government to receive grants under subsection 
(fX2). 
(0 ALLOCATION OF AMOUNTS.— 
(1) STATE GRANTS.— 
(A) IN GENERAL.—Of the total amount appropriated 
for each fiscal year to carry out this subsection, the Sec-
retary shall use two-thirdja of such amount to provide 
grants vmder subsection (b) to each State submitting an 
application that is approved by the Secretary. Such 
amounts shall be allocated among the States based upon 
the measure of need (for the whole State) of each State, 
as determined imder section 217(bXlXA) (excluding adjust-
ments under section 217(bXlXD)) of the Cranston-Gonzalez 
National Affordable Housing Act, except that the minimimi 
grant amount for each fiscal year grant shall be $100,000 
(to the extent sufficient amounts are made available). 
(B) PRO RATA DISTRIBUTION.—If insufficient amounts 
are made available for grants in the amoimt under subpara-
graph (A) to each State submitting an approved application, 
each such State shall receive a pro rata portion of such 
106 STAT. 3940 
PUBLIC LAW 102-550—OCT. 28, 1992 
• 
I 
amount based on the ratio of the population of such State 
to the population of all States. 
(2) LOCAL GRANTS.—Of the total amount appropriated for 
each fiscal year to carry out tMs section, the Secretary shall 
use one-third of such amount to provide grants on a competitive 
basis to units of general local government based on the proposed 
uses of such amounts, as provided in the application. Each 
grant made with such amounts shall be in an amount not 
less than $10,000. 
(g) COORDINATION WITH CLEARINGHOUSE.—Each State and unit 
of general local government receiving a grant under this section, 
shall consult, coordinate, and exchange information with tiie 
clearinghouse estabUshed under section 1205. 
(h) REPORTS TO SECRETARY.—Each State and unit of general 
local government receiving a grant under this section shall submit 
a report to the Secretary, not less than 12 months after receiving 
the grant, describing any activities carried out with the grant 
amounts. The report shall contain an assessment of the impact 
of any regulatory barriers identified by the grantee on the housing 
patterns of minorities. 
(i) CONFORMING AMENDMENTS.—The first sentence of section 
106(dXl) of the Housing and Commimity Development Act of 1974 
(42 U.S.C. 5306(dXl)) is amended by striking "for grants" and 
all that follows through "(2))" and inserting 'rhat remains after 
allocations pursuant to paragraphs (1) and (2) of subsection (a)". 
42 use 12705d. 
SEC. 1206. REGULATORY BARRIERS CLEARINGHOUSE. 
(a) ESTABUSHMENT.-The Secretary of Housing and Urban 
Development shall establish a clearinghouse to receive, collect, proc-
ess, and assemble information regarding— 
(1) State and local laws, regulations, and policies affecting 
the development, maintenance, improvement, availability, or 
cost of affordable housing, including tax policies affecting land 
and other property, land use controls, zomng ordinances, Duild-
ing codes, fees and charges, growth limits, and policies that 
affect the return on investment in residential property; 
(2) State and local activities, strategies, ana plans to 
remove or ameliorate the negative effects, if any, of such laws, 
regulations, and policies; and 
(3) State and local strategies, activities and plans that 
promote affordable housing and housing dese^gation. 
(b) FUNCTIONS.—^The clearinghouse estabhshed imder sub-
section (a) shall— 
(1) respond to inquiries from State and local governments, 
other organizations, and individuals requesting information 
regarding State and local laws, regulations, policies, activities, 
strategies, and plans described in subsection (a); and 
(2) provide assistance in identifying, examining, and under-
standing such laws, regulations, policies, activities, strategies, 
and plans. 
SEC. 1206. SUBSTANTIALLY EQUIVALENT FEDERAL AND STATE BAR. 
RIER ASSESSMENT REMOVAL REQUIREMENTS. 
Section 105(bX4) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705(bX4)) is amended by inserting before 
the semicolon at the end the following: ", except that, if a State 
requires a imit of general local government to submit a regulatory 
barrier assessment that is substantially equivalent to the informa-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3941 
tion required under this paragraph, as determined by the Secretary, 
the unit of general local government may submit its assessment 
submitted to the State to the Secretary and shall be considered 
to have complied with this paragraph". 
SEC. 1207. REPORTS BY SECRETARY. 
Not later than 2 years after the date of enactment of this 
Act, the Secretary of Housing and Urban Development shall submit 
a report to the Congress. The report shall— 
(1) describe any successful State and local strategies for 
the removal of barriers to affordable housing; 
(2) assess the impact of identified regulatory barriers on 
the housing patterns of minorities; and 
(3) describe anv strategies developed or implemented by 
the Department of Mousing and Urban Development for reduc-
ing barriers to affordable housing imposed by the Federal 
Grovemment. 
42 u s e 12705a 
note. 
TITLE XIII—GOVERNMENT SPONSORED 
ENTERPRISES 
SEC. 1301. SHORT TITLE. 
This title may be cited as the ''Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992". 
SEC. 1302. CONGRESSIONiikL FINDINGS. 
The Congress finds that— 
(1) the Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation (referred to in this 
section collectively as the "enterprises"), and the Federal Home 
Loan Banks (referred to in this section as the "Banks"), have 
important public missions that are reflected in the statutes 
and charter Acts establishing the Banks and the enterprises; 
(2) because the continued ability of the Federal National 
Mortgage Association and the Federal Home Loan Mortgage 
Corporation to accomj^lish their public missions is important 
to proViding housing in the United States and the health of 
the Nation^ economy, more effective Federal regulation is 
needed to reduce the risk of failure of the enterprises; 
(3) considering the current operating procedures of the 
Federal National Mortgage Association, the Federal Home Loan 
Mortgage Corporation, and the Federcd Home Loan Banks, 
the enterprises and the Banks currently pose low financial 
risk of insolvency; 
(4) neither tne enterprises nor the Banks, nor any securities 
or obligations issued by the enterprises or the Banks, are 
backed by the full faith and credit of tne United Stetes; 
(5) an entity regulating the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation 
should have sufficient autonomy from the enterprises and spe-
cial interest groups; 
(6) an entity regulating such enterprises should have the 
authority to esteblish capital standards, require financial disclo-
sure, prescribe adequate standards for books and records and 
other mtemal controls, conduct examinations when necessary, 
Federal 
Housing 
Enterprises 
Financial 
Safety and 
Soundness Act 
of 1992. 
12 u s e 4501 
note. 
12 u s e 4501. 
106 STAT. 3942 
PUBLIC LAW 102-550—OCT. 28, 1992 
and enforce compliance with the standards and rules that it 
establishes; 
(7) the Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation have an affirmative 
obligation to facilitate the financing of affordable housing for 
low- and moderate-income families in a manner consistent with 
their overall public purposes, while maintaining a strong finan-
cial condition and a reasonable economic return; and 
(8) the Federal Home Loan Bank Act should be amended 
to emphasize that providing for financial safety and soundness 
of the Federal Home Loan Banks is the primary mission of 
the Federal Housing Finance Board. 
12 use 4502. 
SEC. 1303. DEFINITIONS. 
For purposes of this title: 
(1) AFFILIATE.—Except as provided by the Director, the 
term "affiliate" means any entity that controls, is controlled 
by, or is under common control with, an enterprise. 
(2) CAPITAL DISTRIBUTION.— 
(A) IN GENERAL.—The term "capital distribution" 
means— 
(i) any dividend or other distribution in cash or 
in kind made with respect to any shares of, or other 
ownership interest in, an enterprise, except a dividend 
consisting only of shares of the enterprise; 
(ii) any payment made by an enterprise to 
repurchase, redeem, retire, or otherwise acquire any 
of its shares, including any extension of credit made 
to finance an acquisition by the enterprise of such 
shares; and 
(iii) any transaction that the Director determines 
by regulation to be, in substance, the distribution of 
capital. 
(B) EXCEPTION.—Any payment made by an enterprise 
to repurchase its shares for the purpose of fulfilling an 
obligation of the enterprise under an employee stock owner-
ship plan that is qualified under section 401 of the Internal 
Revenue Code of 1986 or any substantially equivalent plan, 
as determined by the Director, shall not be considered 
a capital distribution. 
(3) COMPENSATION.—^The term "compensation" means any 
pa)rment of money or the provision of any other thing of current 
or potential value in connection with employment. 
(4) CORE CAPITAL.—^The term "core capital" means, with 
respect to an enterprise, the sum of the following (as determined 
in accordance with generally accepted accounting principles): 
(A) The par or stated value of outstanding common 
stock. 
(B) The par or stated value of outstanding perpetual, 
noncumulative preferred stock. 
(C) Paid-in capital. 
(D) Retained earnings. 
The core capital of an enterprise shall not include any amounts 
that the enterprise could be required to pay, at the option 
of investors, to retire capital instruments. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3943 
(5) DIRECTOR.—^The term "Director" means the Director 
of the Office of Federal Housing Enterprise Oversight of the 
Department of Housingand Urban Development. 
(6) ENTERPRISE.—^Tlie term "enterprise" means— 
(A) the Federal National Mortage Association and 
any affiliate thereof; and 
(B) the Federal Home Loan Mortgage Corporation and 
any affiliate thereof. 
(7) EXECUTIVE OFFICER.—The term "executive officer" 
means, with respect to an enterprise, the chairman of the 
board of directors, chief executive officer, chief financial officer, 
president, vice chairman, any executive vice president, and 
any senior vice president in charge of a principal business 
unit, division, or function. 
(8) LOW-INCOME.—The term "low-income" means— 
(A) in the case of owner-occupied units, income not 
in excess of 80 percent of area median income; and 
(B) in the case of rental units, income not in excess 
of 80 percent of area median income, with acyustments 
for smaller and larger families, as determined by the 
Secretary. 
(9) MEDIAN INCOME.—The term "median income" means, 
with respect to an area, the unadjusted median family income 
for the area, as determined and published annually by the 
Secretary. 
(10) MODERATE-INCOME.—The term "moderate-income" 
means— 
(A) in the case of owner-occupied units, income not 
in excess of area median income; and 
(B) in the case of rental units, income not in excess 
of £irea median income, with adjustments for smaller and 
larger families, as determined by the Secretary. 
(11) MORTGAGE PiJRCHASES.^The term "mortgage pur-
chases" includes mortgages purchased 
for portfolio 
or 
securitization. 
(12) MULTIFAMILY HOUSING.—The term "multifamily hous-
ing" means a residence consisting of more than 4 dwelling 
units. 
(13) NEW PROGRAM.—^The term "new program" means any 
program for the purchasing, servicing, selling, lending on the 
security of, or otherwise dealing in, conventional mortgages 
that— 
(A) is significantly different from programs that have 
been approved under this Act or that were approved or 
engaged in by an enterprise before the date of the enact-
ment of this Act; or 
(B) represents an expansion, in terms of the dollar 
voliune or number of mortgages or securities involved, of 
programs above limits expressly contained in any prior 
approval. 
(14) OFFICE.—The term "Office" means the Office of Federal 
Housing Enterprise Oversight of the Department of Housing 
and Urban Development. 
(15) SECRETARY.—The term "Secretary" means the Sec-
retary of Housing and Urban Development. 
(16) SINGLE FAMILY HOUSING.—The term "single family 
housing" means a residence consisting of 1 to 4 dwelling units. 
106 STAT. 3944 
PUBLIC LAW 102-550—OCT. 28, 1992 
(17) STATE.—The term "State" means the States of the 
United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, the Virgin Islands, American Samoa, the Trust 
Territory of the Pacific Islands, and any other territory or 
possession of the United States. 
(18) TOTAL CAPITAL.—The term "total capital" means, with 
respect to an enterprise, the sum of the following: 
(A) The core capital of the enterprise; 
(B) A general allowance for foreclosure losses, which— 
(i) shall include an allowance for portfolio mortgage 
losses, an allowance for nonreimbursable foreclosure 
costs on government claims, and an allowance for liabil-
ities reflected on the balance sheet for the enterprise 
for estimated foreclosure losses on mortgage-backed 
securities; and 
(ii) shall not include any reserves of the enterprise 
made or held against specific assets. 
(C) Any other amoimts from sources of funds available 
to absorb losses incurred by the enterprise, that the Direc-
tor by regulation determines are appropriate to include 
in determining total capital. 
(19) VERY LOW-INCOME.—^The term "very low-income" 
means— 
(A) in the case of owner-occupied units, income not 
in excess of 60 percent of area median income; and 
(B) in the case of rental imits, income not in excess 
of 60 percent of area median income, with adjustments 
for smaller and larger families, as determined by the 
Secretary. 
12 use 4503. 
SEC. 1304. PROTECTION OF TAXPAYERS AGAINST LIABILITY. 
This title and the amendments made by this title may not 
be construed as obligating the Federal Government, either directly 
or indirectly, to provide any funds to the Federal Home Loan 
Mortgage Corporation, the Federal National Mortgage Association, 
or the Federal Home Loan Banks, or to honor, reimburse, or other-
wise guarantee anv obligation or liability of the Federal Home 
Loan Mortgage Corporation, the Federal National Mortgage 
Association, or the Federal Home Loan Banks. This title and the 
amendments made by this title may not be construed as implying 
that any such enterprise or Bank, or any obligations or securities 
of such an enterprise or Bank, are backed by the full faith and 
credit of the United States. 
Subtitle A—Supervision and Regulation of 
Enterprises 
PART 1—FINANCIAL SAFETY AND SOUNDNESS 
REGULATOR 
12 use 4511. 
SEC. 1311. ESTABUSHMENT OF OFFICE OF FEDERAL HOUSING 
ENTERPRISE OVERSIGHT. 
There is hereby established an office within the Department 
of Housing and Urban Development, which shall be known as 
the Office of Federal Housing Enterprise Oversight. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3945 
SEC. 1312. DIRECTOR. 
12 USC 4512. 
(a) APPOINTMENT.—^The Office shall be under the management President. 
of a Director, who shall be appointed by the President, by and 
with the advice and consent of tne Senate, from among individuals 
who are citizens of the United States, have a demonstrated under-
standing of financial management or oversight, and have a dem-
onstrated underst£uiding of mortgage seciirity markets and housing 
finance. An individual may not be appointed as Director if the 
individual has served as an executive officer or director of an 
enterprise at any time during the 3-year period ending upon the 
nomination of such individual for appointment as Director. 
(b) TERM.—^The Director shall be appointed for a term of 5 
years. 
(c) VACANCY.—A vacancy in the pK)sition of Director shall be 
filled in the manner in which the original appointment was made 
under subsection (a). 
(d) SERVICE AFTER END OF TERM.—^A Director may serve after 
the expiration of the term for which the Director was appointed 
imtil a successor Director has been appointed. 
(e) DEPUTY DIRECTOR.— 
\ 
(1) IN GENERAL.—The Office shall have a Deputy Director 
who shall be appointed by the! Director from among individuals 
who are citizens of the United States, have a demonstrated 
understanding of financial management or oversight, and have 
a demonstrated understanding of mortgage security markets 
and housing finance. An individual may not be appointed as 
Deputy Director if the individual has served as an executive 
officer or director of an enterprise at any time during the 
3-year period ending upon the appointment of such individual 
as Deputy Director. 
(2) FUNCTIONS.—^The Deputy Director shall have such func-
tions, powers, and duties as the Director shall prescribe. In 
the event of the death, resignation, sickness, or absence of 
the Director, the Deputy Director shall serve as acting Director 
until the return of the Director or the appointment of a succes-
sor pursuant to subsection (c). 
SEC 1313. DUTY AND AUTHORITY OF DIRECTOR. 
12 USC 4513. 
(a) DUTY.—^The duty of the Director shall be to ensure that 
the enterprises are adequately capitalized and operating safely, 
in accordance with this title. 
(b) AUTHORITY EXCLUSIVE OF SECRETARY.—The Director is 
authorized, without the review or approval of the Secretary, to 
make such determinations, take such actions, and perform such 
functions as the Director determines necessary regarding— 
(1) the issuance of regulations to carry out this part, sub-
title B, and subtitle C (including the establishment of capital 
standards pursuant to subtitle B); 
(2) examinations of the enterprises under section 1317; 
(3) determining the capital levels of the enterprises and 
classification of the enterprises within capital classifications 
established under subtitle B; 
(4) decisions to appoint conservators for the enterprises; 
(5) administrative and enforcement actions under subtitle 
B, actions taken under subtitle C with respect to enforcement 
of subtitle B, and other matters relating to safety and 
soundness; 
106 STAT. 3946 
PUBLIC LAW 102-550—OCT. 28, 1992 
(6) approval of payments of capital distributions by the 
enterprises under section 303(cX2) of the Federal National 
Mortgage Association Charter Act and section 303(bX2) of the 
Federal Home Loan Mortgage Corporation Act; 
(7) requiring the enterprises to submit reports under sec-
tion 1314 of this title, section 309(k) of the Federal National 
Mortgage Association Charter Act, and section 307(c) of the 
Federal Home Loan Mortgage Corporation Act; 
(8) prohibiting the payment of excessive compensation by 
the enterprises to any executive officer of the enterprises under 
section 1318; 
(9) the management of the Office, including the establish-
ment and implementation of annual budgets, the hiring of, 
and compensation levels for, personnel of the Office, and annual 
assessments for the costs of the Office; 
(10) conducting research and 
financial 
analysis; and 
(11) the submission of reports required by the Director 
under this title. 
(c) AUTHORITY SUBJECT TO APPROVAL OF SECRETARY.—Any 
determinations, actions, and fimctions of the Director not referred 
to in subsection (b) shall be subject to the review and approval 
of the Secretary. 
(d) DELEGATION OF AUTHORITY.—The Director may delegate 
to officers and employees of the Office any of the fimctions, powers, 
and duties of the Director, as the Director considers appropriate. 
(e) INDEPENDENCE IN PROVIDING INFORMATION TO CONGRESS.— 
The Director shall not be required to obtain the prior approval, 
comment, or review of any ofiicer or agency of the Unitea States 
before submitting to the Congress, or any committee or subcommit-
tee thereof, any reports, recommendations, testimony, or comments 
if such submissions include a statement indicating that the views 
expressed therein are those of the Director and do not necessarily 
represent the views of the Secretary or the President. 
12 use 4514. 
SEC. 1314. AUTHORnY TO REQUIRE REPORTS BY ENTERPRISES. 
(a) SPECIAL REPORTS AND REPORTS OF FINANCIAL CONDITION.— 
(1) FINANCIAL CONDITION.—The Director may require an 
enterprise to submit reports of financial condition and oper-
ations (in addition to the annual and quarterly reports required 
under section 309(k) of the Federal National Mortgage Associa-
tion Charter Act and section 307(c) of the Federal Home Loan 
Mortgage Corporation Act). 
(2) SPECIAL REPORTS.—^The Director may also require an 
enterprise to submit special reports whenever, in the judgment 
of the Director, such reports are necessary to carry out the 
purposes of this title. 
(3) LIMITATION.—^The Director may not require the inclu-
sion, in any report pursuant to paragraph (1) or (2), of any 
information that is not reasonably obtainable by the enterprise. 
(4) NOTICE AND DECLARATION.—The Director shall notify 
the enterprise, a reasonable period in advance of the date 
for submission of any report under this subsection, of any 
specific information to be contained in the report and the date 
for the submission of the report. Each report under this sub-
section shall contain a declaration by the president, vice presi-
dent, treasurer, or any other officer designated by the board 
of directors of the enterprise to make such declaration, that 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3947 
the report is true and correct to the best of such officer's 
knowledge and belief. 
(b) CAPITAL DISTRIBUTIONS.—The Director may require an 
enterprise to submit a report to the Director after the declaration 
of any capital distribution by the enterprise and before making 
the capital distribution. The report shall be made in such form 
and under such circumstances and shall contain such information 
as the Director shall require. 
SEC. 1316. PERSONNEL. 
12 USC 4515. 
(a) OFFICE PERSONNEL.—^The Director may appoint and fix 
the compensation of such officers and employees of the Office as 
the Director considers necessary to carry out the functions of the 
Director and the Office. Officers and employees may be paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 
53 of title 5, United States Code, relating to classification and 
General Schedule pay rates. 
(b) COMPARABILITY OF COMPENSATION WITH FEDERAL BANKING 
AGENCIES.—In fixing and directing compensation under subsection 
(a), the Director shall consult with, and maintain comparability 
with compensation of officers and employees of the Office of the 
Comptroller of the Currenc}', the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corporation, and 
the Office of Thrift Supervision. 
(c) PERSONNEL OF OTHER FEDERAL AGENCIES.—In carrying out 
the duties of the Office, the Director may use information, services, 
staff, and facilities of anv executive agency, independent agency, 
or department on a reimbursable basis, with the consent of such 
agency or department. 
(d) REIMBURSEMENT OF HUD.—The Director shall reimburse 
the Department of Housing and Urban Development for reasonable 
costs incurred by the Department that are directly related to the 
operations of the Office. 
(e) OUTSIDE EXPERTS AND CONSULTANTS.—Notwithstanding any 
provision of law limiting pay or compensation, the Director may 
appoint and compensate such outside experts and consultants as 
the Director determines necessary to assist the work of the Office. 
(f) EQUAL OPPORTUNITY REPORT.—^Not later than the expiration 
of the 180-day period beginning upon the appointment of the Direc-
tor under section 1312, the Director shall submit to the Committee 
on Banking, Finance and Urban Affairs of the House of Representa-
tives and me Committee on Banking, Housing, and Urban Affairs 
of the Senate a report containing— 
(1) a complete description of the equal opportunity, affirma-
tive action, and minority business enterprise utilization pro-
grams of the Office; and 
(2) such recommendations for administrative and legislative 
action as the Director determines appropriate to carry out 
such programs. 
SEC. 1316. FUNDING. 
12 USC 4516. 
(a) ANNUAL ASSESSMENTS.—The Director may, to the extent 
provided in appropriation Acts, establish and collect from the enter-
prises annual assessments in an amount not exceeding the amount 
sufficient to provide for reasonable costs and expenses of the Office, 
including Uie expenses of any examinations under section 1317. 
The initial annual assessment shall include any startup costs of 
106 STAT. 3948 
PUBLIC LAW 102-550—OCT. 28, 1992 
the Office and any anticipated costs and expenses of the Office 
for the following fiscal year. 
(b) ALLOCATION OF ANNUAL ASSESSMENT TO ENTERPRISES.— 
(1) AMOUNT OF PAYMENT.—Each enterprise shall pay to 
the Director a proportion of the annual assessment made pursu-
ant to subsection (a) that bears the same ratio to the total 
annual assessment that the total assets of each enterprise 
bears to the total assets of both enterprises. 
(2) TIMING OF PAYMENT.—The annual assessment shall be 
payable semiannually on September 1 and March 1 of the 
year for which the assessment is made. 
(3) DEFINITION.—For the purpose of this section, the term 
"total assets" means, with respect to an enterprise, the sum 
of— 
(A) on-balance-sheet assets of the enterprise, as deter-
mined in accordance with generally accepted accounting 
principles; 
(B) the unpaid principal balance of outstanding mort-
gage-backed securities issued or guaranteed by the enter-
prise that £ire not included in subparagraph (A); and 
(C) other off-balance-sheet obligations as determined 
by the Director. 
(c) DEFICIENCIES DUE TO INCREASED COSTS OF REGULATION.— 
The semiannual pajonents made pursuant to subsection (b) by 
any enterprise that is not classified (for purposes of subtitle B) 
as adequately capitalized may be increased, as necessary, in the 
discretion of the Director to pay additional estimated costs of regula-
tion of the enterprise. 
(d) SURPLUS.—If any amoimt from any annual assessment col-
lected fi*om an enterprise remains unobligated at the end of the 
vear for which the assessment was collected, such amount shall 
be credited to the assessment to be collected firom the enterprise 
for the following year. 
(e) INITIAL SPECIAL ASSESSMENT.—Not later than the expiration 
of the 30-day period beginning on the date of the enactment of 
this Act, the enterprises shall each pay into the Federal Housing 
Enterprises Oversight Fimd established under subsection (f) an 
initial assessment of $1,500,000 to cover the startup costs of the 
Office, including space and modifications thereof, capital equipment, 
suppUes, recruitment, and activities of the Office during the period 
preceding the first annual assessment under subsection (a). Any 
amounts collected firom an enterprise under this subsection shall 
be credited against the first annual assessment collected pursuant 
to subsection (a), and are hereby appropriated, and shall oe avail-
able and used, without fiscal year limitation, as provided in this 
section. 
(f) FUND.—^There is established in the Treasury of the United 
States a fund to be known as the Federal Housing Enterprises 
Oversight Fund. Any assessments collected pursuant to this section 
shall he deposited in the Fund. Amounts in the Fund shall be 
available, to the extent provided in appropriation Acts and sub-
section (e), for— 
(1) carrying out the responsibiUties of the Director relating 
to the enterprises; and 
(2) 
necessary 
administrative 
and 
nonadministrative 
expenses of the Office to carry out the purposes of this title. 
(g) BUDGET A
N
D FINANCIAL REPORTS.— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3949 
(1) FINANCIAL OPERATING PLANS AND FORECASTS.—Before 
the beginning of each fiscal year, the Director shall submit 
a copy of the financial operating plans and forecasts for the 
Office to the Secretary and the Director of the Office of Manage-
ment and Budget. 
(2) REPORTS OF OPERATIONS.—As soon as practicable after 
the end of each fiscal year and each quarter thereof, the Direc-
tor shall submit a copy of the report of the results of the 
operations of the Office during such period to the Secretary 
and the Director of the Office of Management and Budget. 
(3) INCLUSION IN PRESIDENT'S BUDOET.^The annual plans, 
forecasts, and reports required imder this subsection shall be 
included (A) in the Budget of the United States in the appro-
priate form, and (B) in the congressional justifications of the 
Department of Hoiising and Urban Development for each fiscal 
year in a form determined by the Secretary. 
SEC. 1317. E3CAMINATIONS. 
12 USC 4517. 
(a) ANNUAL EXAMINATION.—The Director shall anniially conduct 
an on-site examination under this section of each enterprise to 
determine the condition of the enterprise for the purpose of ensuring 
its 
financial 
safety and soimdness. 
(b) OTHER EXAMINATIONS.—In addition to annual examinations 
under subsection (a), the Director may conduct an examination 
under this section whenever the Director determines that an exam-
ination is necessary to determine the condition of an enterprise 
for the purpose of ensuring its financial safety and soundness. 
(c) EXAMINERS.—^The Director shall appoint examiners to con-
duct examinations under this section. The Director may contract Contracts. 
with the Comptroller of the Currency, the Board of Grovemors 
of the Federal Reserve System, the Federal Deposit Insurance Cor-
poration, or the Director of the Office of Thrift Supervision for 
the services of examiners. The Director shall reimburse such agen-
cies for any costs of provi<iing examiners from amounts available 
in the Federal Hoiising Enterprises Oversight Fund. 
(d) LAW APPUCABLE TO EXAMINERS.—The Director and each 
examiner shall have the same authority and each examiner shall 
be subject to the same disclosures, prohibitions, obligations, and 
penalties as are applicable to examiners employed by the Federal 
Reserve banks. 
(e) TECHNICAL EXPERT;;.—^The Director may obtain the services 
of any technical experts the Director considers appropriate to pro-
vide temporary technical assistance relating to examinations to 
the Director, officers, and employees of the Office. The Director 
shall describe, in the record oi each examination, the nature and 
extent of any such temporary technical assistance. 
(f) OATHS, EVIDENCE, AND SUBPOENA POWERS.—In connection 
with examinations under this section, the Director shall have the 
authority provided under sciction 1379B. 
SEC. 1318. PROHIBITION OF EXCESSIVE COMPENSATION. 
12 USC 4518. 
(a) IN GENERAL.—The Director shall i>rohibit the enterprises 
fi:t)m providing compensation to any executive officer of the enter-
prise tJiat is not reasonable and comparable with compensation 
for employment in other similar businesses (including other publicly 
held fmancial institutions or mcgor financial services companies) 
involving similar duties and responsibiUties. 
106 STAT. 3950 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) PROHmmoN OF SETTING COMPENSATION.—In carrying out 
subsection (a), the Director may not prescribe or set a specific 
level or range of compensation. 
12 use 4519. 
SEC. 1319. AUTHORTIY TO PROVIDE FOR REVIEW OF ENTERPRISES 
B
Y RATING ORGANIZATION. 
The Director may, on such terms and conditions as the Director 
deems appropriate, contract with any entity effectively recognized 
byr the Division of Market Regulation of the Securities and Exdiange 
Commission as a nationally recognized statistical rating organiza-
tion for tJie purposes of the capital rules for broker-dealers, to 
conduct a review of the enterprises. 
Minorities. 
SEC. 1319A. EQUAL OPPORTUNITY IN SOUCITATION OF CONTRACTS. 
I2°usc 4520 
(*^ ^^ GENERAL.—Each enterprise shall establish a minority 
outreach program to ensure the inclusion (to the maximum extent 
possible) m contracts entered into by the enterprises of minorities 
and women and businesses owned by minorities and women, includ-
ing financial institutions, investment banking firms, underwriters, 
accountants, brokers, and providers of le^al services. 
(b) REPORT.—^Not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act, each enterprise 
shall submit to the Committee on Banking, Finance and lJrb£ui 
Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a report describ-
ing the actions taken by the enterprise pursuant to subsection 
(a). 
12 use 4521. 
SEC. 1319B. ANNUAL REPORTS BY DIRECTOR. 
(a) GENERAL REPORT.—The Director shall submit to the 
Committee on Banking, Finance and Urban Affairs of the House 
of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, not later than June 15 of each year, 
a written report, which shall include— 
(1) a description of the actions taken, and being under-
taken, by the Director to carry out this title; 
(2) a description of the financial safety and soundness 
of each enterprise, including the results and conclusions of 
the annual examinations of the enterprises conducted under 
section 1317(a); and 
(3) any recommendations for legislation to enhance the 
financial safety and soundness of the enterprises. 
(b) REPORT ON ENFORCEMENT ACTIONS.—Not later than March 
15 of each year, the Director shall submit to the Committee on 
Banking, Finance and Urbcui Affairs of the House of Representa-
tives and the Committee on Banking, Housing, and Urban Affairs 
of the Senate a written report describing, for the preceding calendar 
year, the requests by the Director to the Attorney General for 
enforcement actions under subtitle C and describing the disposition 
of each request, which shall include statements o
f
— 
(1) the total niunber of requests made by the Director; 
(2) the number of requests that resulted in the commence-
ment of Utigation by the Department of Justice; 
(3) the number of requests that did not result in the 
commencement of litigation by the Department of Justice; 
(4) with respect to requests that resulted in the commence-
ment of Utigation— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3951 
(A) the number of days between the date of the request 
and the commencement of the Utigation; and 
(B) the number of days between the date of the 
commencement and termination of the Utigation; and 
(5) the nimiber of litigation requests pencdng at the begin-
ning of the calendar year, the number of requeste made during 
the calendar year, the number of requests for which action 
was completed during the calendar year, and the number of 
requests pending at the end of the c£dendar year. 
SEC. 1319C. PUBUC DISCLOSURE OF FINAL ORDERS AND AGREE- 12 USC 4522. 
MENTS. 
(a) IN GENERAL.—^The Director shall make available to the 
public— 
(1) any written agi'eement or other written statement for 
which a violation may be redressed by the Director or any 
modification to or termination thereof unless the Director, 
in the Director's discretion, determines that public disclosure 
would be contrary to the public interest or determines imder 
subsection (c) that public disclosure would seriously threaten 
the financial health or seciuity of the enterprise; 
(2) any order that is issued with respect to any administra-
tive enforcement proceeding initiated by the Director under 
subtitle C and that has become final; and 
(3) any modification to or termination of any final order 
made public pursuant to this subsection. 
(b) HEARINGS.—^All hearings on the record with respect to any 
action of the Director or notice of charges issued by the Director 
shall be open to the public, imless the Director, in the Director's 
discretion, determines that holding an open hearing would be con-
trary to the public interest. 
(c) DELAY OF PUBLIC DISCLOSURE UNDER EXCEPTIONAL CIR-
CUMSTANCES.—If the Director makes a determination in writing 
that the public disclosure of any final order pursuant to subsection 
(a) woula seriously threaten the financial health or security of 
the enterprise, the Director may delay the public disclosure of 
such order for a reasonable time. 
(d) DOCUMENTS FILED UNDER SEAL IN PUBLIC ENFORCEMENT 
HEARINGS.—^The Director may file any document or part thereof 
under seal in any hearing imder subtitle C if the Director deter-
mines in writing that disclosure thereof would be contrary to the 
public interest. 
(e) RETENTION OF DOCUMENTS.—The Director shall keep and Records. 
maintain a record, for not less than 6 years, of all documents 
described in subsection (a) and all enforcement agreements and 
other supervisory actions and supporting documents issued with 
respect to or in connection with any enforcement proceeding initi-
ated by the Director under subtitle C. 
(0 DISCLOSURES TO CONGRESS.—This section may not be con-
strued to authorize the withholding of any information from, or 
to prohibit the disclosure of any information to, the Congress or 
any committee or subcommittee thereof. 
SEC. 1319D. LIMITATION ON SUBSEQUENT EMPLOYMENT. 
12 USC 4523. 
Neither the Director nor any former officer or employee of 
the Office who, while employed by thie Office, was compensated 
at a rate in excess of the lowest rate for a position classified 
higher than GS-15 of the General Schedule under section 5107 
106 STAT. 3952 
PUBLIC LAW 102-550—OCT. 28, 1992 
of title 5, United States Code, may accept compensation from an 
enterprise during the 2-year period beginning on the date of separa-
tion from emplojnnent by the Office. 
12 use 4524. 
SEC. 1319E. AUDITS BY GAO. 
The Comptroller General shall audit the operations of the Office 
in accordance with generally accepted Government auditing stand-
ards. All books, records, accounts, reports, files, and property 
belonging to, or used by, the Office shall be made available to 
the Comptroller General. Audits under this section shall be con-
ducted annually for the first 2 fiscal years following the date of 
the enactment of this Act and as appropriate thereafter. 
12 use 4525. 
SEC. 1S19F. INFORMATION, RECORDS, AND MEETINGS. 
For purposes of subchapter II of chapter 5 of title 5, United 
Stetes Code— 
(1) the Office, and 
(2) the Department of Housing and Urban Development, 
with respect to activities under this title, 
shall be considered agencies responsible for the regulation or super-
vision of financial institutions. 
12 use 4526. 
SEC. 1319G. REGULATIONS AND ORDERS. 
(a) AUTHORITY.—^The Director shall issue any regulations and 
orders necessary to carry out the duties of the Director and to 
carry out this title before the expiration of the 18-month period 
beginning on the appointment of the Director under section 1312. 
Such regulations and orders shall be subject to the approved of 
the Secretary only to the extent provided in subsections (b) and 
(c) of section 1313. 
(b) NOTICE AND COMMENT.—^Any regulations issued by the 
Director under this section shall be issued after notice and oppor-
tunity for public comment pursuant to the provisions of section 
553 of title 5, United Stetes Code. 
(c) CONGRESSIONAL REVIEW.—The Director may not publish 
any regulation for comment under subsection (b) unless, not less 
than 15 days before it is published for comment, the Director 
has submitted a copy of the regulation, in the form it is intended 
to be proposed, to the Committee on Banking, Finance and Urban 
Affairs of the House of Representetives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate. 
PART 2—AUTHORITY OF SECRETARY 
Subpart A—General Authority 
12 use 4541. 
SEC. 1321. REGULATORY AUTHORITY. 
Except for the authority of the Director of the Office of Federal 
Housing Enterprise Oversight described in section 1313(b) and all 
other matters relating to the safety and soundness of the enter-
prises, the Secretory of Housing and Urban Development shall 
nave general regulatory power over each enterprise ana shall make 
such rules and regulations as shall be necessary and proper to 
ensure that this part and the purposes of the Federal National 
Mortgage Association Charter Act and the Federal Home Loan 
Mortgage Corporation Act are accomplished. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3953 
SEC. 1322. PRIOR APPROVAL AUTHORITY FOR NEW PROGRAMS. 
12 USC 4542. 
(a) AUTHORITY.—^The Secretary shall require each enterprise 
to obtain the approval of the Secretary for any new program of 
the enterprise berore implementing the program. 
(b) STANDARD FOR APPROVAL.— 
(1) PERMANENT STANDARD.—Except as provided in para-
graph (2), the Secretartr shall approve any new program of 
an enterprise for purposciS of subsection (a) unless— 
(A) for a new program of the Federal National Mort-
gage Association, tne Secretary determines that the pro-
gram is not authorized under paragraph (2), (3), (4), or 
(5) of section 302(b) of the Federal National Mortgage 
Association Charter Act, or under section 304 of such Act; 
(B) for a new program of the Federal Home Loan 
Mortgage Corporation, the Secretary determines that the 
program is not authorized imder section 305(a) (1), (4), 
or (5) of the Federal Home Loan Mortgage Corporation 
Act; or 
(C) the Secretary determines that the new program 
is not in the public interest. 
(2) TRANSITION STANDARD.—Before the date occurring 12 
months after the date of the effectiveness of the relations 
under section 1361(e) establishing the risk-based capital test, 
the Secretary shall approve any new program of an enterprise 
for purposes of subsection (a) unless— 
(A) The Secretary makes a determination as described 
in paragraph (1) (A), (B), or (C); or 
(B) the Director determines that the new program 
would risk significant deterioration of the financial condi-
tion of the enterprise. 
(c) PROCEDURE FOR APPROVAL.— 
(1) SUBMISSION OF REQUEST.—TO obtain the approval of 
the Secretary for purposes of subsection (a), an enterprise shall 
submit to the Secretary a written request for approval of the 
new program that describes the program. 
(2) RESPONSE.—The Secretary shall, not later than the 
expiration of the 45-day period beginning upon the submission 
of a request for approval, approve the request or submit to 
the Committee on Bankiing, Finance and Urban Affairs of the 
House of Representatives and the Committee on B£uiking, Hous-
ing, and Urban AfTairs of the Senate a report explaining tiie 
reasons for not approving the request. The Secretary may 
extend such period for a single additional 15-day period only 
if the Secretary requests additional information fi:om the 
enterprise. 
(3) FAILURE TO RESPOND,—If the Secretary fails to approve 
the request or fails to submit a report under paragraph (2) 
during the period under such paragraph, the request shall 
be considered to have been approved. 
(4) REVIEW OF DISAPPROVAL.— 
(A) UNAUTHORIZED NEW PROGRAMS.—If the Secretary 
submits a report under paragraph (2) of this subsection 
disapproving a request for approval on the grounds under 
subparagraph (A) or (B) of subsection (bXD, the Secretarv 
shall proviae the enterprise submitting the request with 
a timely opportimity to review and supplement the 
administrative record. 
106 STAT. 3954 
PUBLIC LAW 102-550—OCT. 28, 1992 
(B) NEW PROGRAMS NOT IN PUBUC INTEREST.—If the 
Secretary submits a report under paragraph (2) of this 
subsection disapproving a request for approval on the 
grounds under subsection (bXlXC) or (bX2XB), the Sec-
retary shall provide the enterprise submitting the request 
notice of, and opportimitv for, a hearing on the record 
regarding such disapproval. 
12 use 4543. 
SEC. 1323. PUBUC ACCESS TO MORTGAGE INFORMATION. 
(a) IN GENERAL.—^The Secretaiy shall make available to the 
E
ublic, in forms useful to the public (including forms accessible 
y computers), the data submitted bv the enterprises in the reports 
required under section 309(m) of the Federal National Mortgage 
Association Charter Act or section 307(e) of the Federal Home 
Loan Mortgage Corporation Act. 
(b) ACCESS.— 
(1) PROPRIETARY DATA.—Except as provided in paragraph 
(2), the Secretary may not make availaole to the public data 
that the Secretary determines pursuant to section 1326 are 
proprietary information. 
(2) EXCEPTION.—^The Secretary shall not restrict access 
to the data provided in accordance with section 309(mXlXA) 
of the Federal National Mortgage Association Charter Act or 
section 307(eXlXA) of the Federal Home Loan Mortgage Cor-
poration Act. 
(c) FEES.—^The Secretary may charge reasonable fees to cover 
the cost of making data available under this section to the public. 
12 use 4544. 
SEC. 1324. ANNUAL HOUSING REPORT. 
(a) IN GENERAL.—^After reviewing and analyzing the reports 
submitted under section 309(n) of the Federal National Mortgage 
Association Charter Act and section 307(f) of the Federal Home 
Loan Morteage Corporation Act, the Secretary shall submit a report, 
as part of the annual report under section 1328(a) of this title, 
on the extent to which each enterprise is achieving the annual 
housing goals established under subpart B of this part and the 
purposes of the enterprise established by law. 
(b) CONTENTS.—The report shall— 
(1) aggregate and analyze census tract data to assess the 
compliance of each enterprise with the central cities, rural 
areas, and other underserved areas housing goal and to deter-
mine levels of business in central cities, rural areas, under-
served areas, low- and moderate-income census tracts, minority 
census tracts, and other geographical areas deemed appropriate 
by the Secretary; 
(2) aggregate and analyze data on income to assess the 
compliance of each enterprise with the low- and moderate-
income and special affordable housing goals; 
(3) aggregate and analyze data on income, race, and gender 
by census tract and compare such data with larger demo-
graphic, housing, and economic trends; 
(4) examine actions that each enterprise has undertaken 
or could imdertake to promote and expand^ |Ji(g,4Stnnual goals 
established under sections 1332, 1333, and 1334, and the pur-
poses of the enterprise established by law; 
(5) examine the primary and secondary multifamily housing 
mortgage markets and describe^ 
(A) the availability and liquidity of mortgage credit; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3955 
(B) the status of efiforts to provide standard credit 
terms and underwriting guidelines for multifamily hoiising 
and to securitize such mortgage products; and 
(C) any factors inhibiting such standardization and 
securitization; 
(6) examine actions each enterprise has undertaken and 
could undertake to promote and expand opportunities for first-
time homebuyers; and 
(7) describe any actions taken under section 1325(5) with 
respect to originators found to violate fair lending procedures. 
SEC. 1325. FAIR HOUSING. 
12 USC 4545. 
_, 
_ 
, 
, 1 , 
Regulations. 
The Secretary shall— 
(1) by regulation, piohibit each enterprise from discriminat-
ing in any manner in the purchase of any mortg£Lge because 
of race, color, religion, sex, handicap, familial status, age, or 
national origin, including any consideration of the age or loca-
tion of the dwelling or the age of the neighborhood or census 
tract where the dwelling is located in a manner that has 
a discriminatory effect; 
(2) by regulation, require each enterprise to submit data 
to the Secretary to assist the Secretary in investigating whether 
a mortgage lender with which the enterprise does business 
has failed to comply with the Fair Housing Act; 
(3) by regulation, require each enterprise to submit data 
to the Secretary to assist in investigating whether a mortgage 
lender with which the enterprise does business has failed to 
comply with the Equal Oedit Opportunity Act, and shall submit 
any such information rcK^ived to the appropriate Federal agen-
cies, as provided in section 704 of the Equal Credit Opportimity 
Act, for appropriate action; 
(4) obtain information from other regulatory and enforce-
ment agencies of the Federal Government and State and local 
governments regarding violations by lenders of the Fair Hous-
mg Act and the Equsu Credit Opportunity Act and make such 
information available to the enterprises; 
(5) direct the enterprises to undertake various remedial 
actions, including suspension, probation, reprimand, or settle-
ment, against lenders that have been found to have engaged 
in discriminatory lending practices in violation of the Fair 
Housing Act or the Equal Credit Opportunity Act, pursuant 
to a final adjudication on the record, and after opportunity 
for an administrative hearing, in accordance with subchapter 
n of chapter 5 of title 5, United States Code; and 
(6) periodicallv review and comment on the underwriting 
and appraisal guidelines of each enterprise to ensure that such 
guidelines are consistent with the Fair Housing Act and this 
section. 
SEC. 1328. PROHmrnON OF PUBUC DISCLOSURE OF PROPRIETARY 
12 USC 4546. 
INFORMATION. 
(a) IN GENERAL.—^The Secretarv may, by regulation or order, 
provide that certain information shall be treated as proprietary 
information and not subject to disclosure imder section 1323 of 
tills title, section 309(nX3) of the Federal National Mortgage 
Association Charter Act, or section 307(fX3) of the Federal Home 
Loan Mortgage Corporation Act. 
106 STAT. 3956 
PUBLIC LAW 102-550—OCT. 28, 1992 
(b) PROTECTION OF INFORMATION ON HOUSING AcnvmES.— 
The Secretary shall not provide public access to, or disclose to 
the public, any information required to be submitted by an enter-
prise under section 309(n) of the Federal National Mortgage 
Association Charter Act or section 307(0 of the Federal Home 
Loan Mortgage Corporation Act that the Secretary determines is 
proprietary. 
(c) NONDISCLOSURE PENDING CONSIDERATION.—This section 
may not be construed to authorize the disclosure of information 
to, or examination of data by, the public or a representative of 
any person or agency pending the issuance of a final decision 
under this section. 
12 use 4548. 
SEC. 1327. AUTHORITY TO REQUIRE REPORTS BY ENTERPRISES. 
The Secretary shall require each enterprise to submit reports 
on its activities to the Secretary as the Secretary considers 
appropriate. 
12 use 4548. 
SEC. 1328. REPORTS BY SECRETARY. 
(a) ANNUAL REPORT.—^The Secretarv shall, not later than June 
30 of each vear, submit a report to tne Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate on the activities of each enterprise. 
(b) VIEWS ON BUDGET AND FINANCIAL PLANS OF ENTERPRISES.— 
On an annual basis, the Secretary shall provide the Committees 
referred to in subsection (a) with comments on the plans, forecasts, 
and reports required imder section 1316(g). 
Subpart B—^Housing Goals 
12 use 4561. 
SEC. 1331. ESTABUSHMENT. 
Regulations. 
(a) IN GENERAL.—The Secretary shall establish, by regulation, 
housing goals under this subpart for each enterprise. The housing 
goals sh£ul include a low- and moderate-income housing goal pursu-
ant to section 1332, a special affordable housing goal pursuant 
to section 1333, and a central cities, rural areas, and other under-
served areas housing goal pursuant to section 1334. The Secretary 
shall implement this subpart in a manner consistent with section 
301(3) of the Federal National Mortgage Association Charter Act 
and section 301(bX3) of the Federal Home Loan Mortgage Corpora-
tion Act. 
(b) CONSIDERATION OF UNITS IN MULTIFAMILY HOUSING.—In 
establishing an^ goal under this subpart, the Secretary may take 
into consicferation the number of housing units financed by any 
mortgage on multifamily housing purchased by an enteiprise. 
(c) ADJUSTMENT OF HOUSING GOALS.—Except as otherwise pro-
vided in this title, from year to year the Secretary may, by regula-
tion, adjust any housing goal established under this subpart. 
12 use 4562. 
SEC. 1332. LOW- AND MODERATE-INCOME HOUSING GOAL. 
(a) IN GENERAL.—^The Secretary shall establish an annual goal 
for the purchase by each enteiprise of mortgages on housing for 
low- ana moderate-income families. The Secretary may establish 
separate specific subgoals within the goal imder this section and 
such subgoals shall not be enforceable under the provisions of 
section 1336, any other provision of this title, or any provision 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3957 
of the Federal National Mortgage Association Charter Act or the 
Federal Home Loan Mortgage Corporation Act. 
(b) FACTORS TO BE APPLIED.—In establishing the goal under 
this section, the Secretary shall consider— 
(1) national housing: needs; 
(2) economic, housing, and demographic conditions; 
(3) the performance and effort of the enterprises toward 
achieving the low- and moderate-income housing goal in pre-
vious years; 
(4) the size of the conventional mortgage market serving 
low- and moderate-income families relative to the size of the 
overall conventional mortgage market; 
(5) the ability of the enterprises to lead the industry in 
making mortgage credit available for low- and moderate-income 
families; and 
(6) the need to maintain the sound financial condition 
of the enterprises. 
(c) USE OF BORROWER AJW TENANT INCOME.— 
(1) IN GENERAL.—^The Secretary shall monitor the perform-
ance of each enterprise; in carrying out this section and shall 
evaluate such performance (for purposes of section 1336) based 
on— 
(A) in the case of an owner-occupied dwelling, the 
mortgagor's income at the time of origination of the mort-
gage; or 
(B) in the case of a rental dwelling— 
(i) the income of the prospective or actual tenants 
of the property, where such data are available; or 
(ii) the rent levels affordable to low- and moderate-
income families, where the data referred to in clause 
(i) are not available. 
(2) AFFORDABlLlTf.—^For the purpose of paragraph 
(IXBXii), a rent level shall be considered affordable if it does 
not exceed 30 percent of the maximiun income level of the 
income categories referred to in tiiis section, with appropriate 
a4justments for unit size as measured by the number of 
bedrooms. 
(d) TRANSITION.— 
(1) INTERIM TARGEI\—^Notwithstanding any other provision 
of thds section, during the 2-year period l^ginning on January 
1, 1993, the annual target imder this section for low- and 
moderate-income mortgage purchases for each enterprise shall 
be 30 percent of the total number of dwelling units financed 
by mortgage purchases of the enterprise. 
(2) INTERIM GOAL.—During such 2-vear period, the Sec-
retary shall establish a separate anniuu goal for each enter-
prise, the achievement of which shall require— 
(A) an enterprise that is not meeting the target under 
paragraph (1) uiK)n January 1, 1993, to improve its 
performance relative to such target annually and, to the 
maximum extent feasible, to meet such target at the conclu-
sion of such 2-year period; and 
• •', (B) an enterprise that is meeting the target under 
paragraph (1) upon January 1, 1993, to improve its 
performance relative to the target. 
(3) IMPLEMENTATION.—The Secretary shall estabUsh any 
requirements necessary to implement Uie transition provisions 
106 STAT. 3958 
PUBLIC LAW 102-550—OCT. 28, 1992 
under this subsection by notice, after providing the enterprises 
with an opportunity to review and comment not less than 
30 days before the issuance of such notice. Such notice shall 
be issued not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act and 
shall be effective upon issuance. 
12 use 4563. 
SEC. 1333. SPECIAL AFFORDABLE HOUSING GOAL. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—^The Secretary shall establish a special 
annual goal designed to adjust the purchase by each enterprise 
of mortgages on rental and owner-occupied nousing to meet 
the then-existing luiaddressed needs of, and affordable to, low-
income families in low-income areas and very low-income fami-
lies. The special affordable housing goal established under this 
section for an enterprise shall not be less than 1 percent of 
the dollar amoimt of^the mortgage piu'chases by the enterprise 
for the previous year. 
(2) STANDARDS.—In establishing the special affordable 
housing goal for an enterprise, the Secretai^ shall consider— 
CA) data submitted to the Secretary m connection with 
the special affordable housing goal for previous years; 
(B) the performance and efforts of the enterprise 
toward achieving the special affordable housing goal in 
previous years; 
(C) national housing needs within the categories set 
forth in this section; 
(D) the ability of the enterprise to lead the industry 
in making mortgage credit available for low-income and 
very low-income families; and 
(E) the need to maintain the sound financial condition 
of the enterprise. 
(b) FULL CREDIT AcnvrriES.— 
(1) IN GENERAL.—^The Secretary shall give full credit toward 
achievement of the special affordable housing goal under this 
section (for purposes of section 1336) to the following activities: 
(A) FEDERALLY RELATED MORTGAGES.—The purchase 
or securitization of federally insured or guaranteed mort-
gages, if— 
(i) such mortgages cannot be readily securitized 
through the Government National Mortgage Associa-
tion or any other Federal agency; 
(ii) participation of the enterprise substantially 
enhances the affordability of the housing subject to 
such mortgages; and 
(iii) the mortgages involved are on housing that 
otherwise qualifies imder such goal to be considered 
for purposes of such goal. 
(B) PORTFOLIOS.—^The piurchase or refinancing of exist-
ing, seasoned portfolios of loans, if— 
(i) the seller is engaged in a specific program to 
use the proceeds of such sales to originate additional 
loans that meet such goal; and 
(ii) such purchases or refinancings support addi-
tional lending for housing that otherwise qualifies 
under such goal to be considered for purposes of such 
goal. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3959 
(C) RTC A
N
D FDic LOANS.—The purchase of direct loans 
made hy the Resolution Trust Corporation or the Federal 
Deposit Insurance Corporation, if such loans— 
(i) are not guaranteed by such agencies themselves 
or other Federal agencies; 
(ii) are made with recourse provisions similar to 
those offered through private mortgage insurance or 
other conventional sellers; and 
(iii) are made for the purchase of housing that 
otherwise qualifies under such goal to be considered 
for purposes of such goal. 
(2) EXCLUSION.—^No credit toward the achievement of the 
special affordable housing goal may be given to the purchase 
or securitization of mortgages associated with the refinancing 
of the existing enterprise portfolios. 
(c) 
USE OF 
BORROWER 
AND 
TENANT 
INCOME.— 
(1) IN GENERAL.—^The Secretary shall monitor the perform-
ance of each enterprise in carrying out this section and shall 
evaluate such performance (for purposes of section 1336) based 
on— 
(A) in the case of an owner-occupied dwelling, the 
mortgagor's income at the time of origination of the mort-
gage; or 
(B) in the c€ise of a rental dwelling— 
(i) the income of the prospective or actual tenants 
of the property, where such data are available; or 
(ii) the rent levels affordable to low-income and 
very low-income families, where the data referred to 
in clause (i) are not available. 
(2) 
AFFORDABILTTY.—^For the purpose of paragraph 
(IXBXii), a rent level shall be considered affordable if it does 
not exceed 30 percent of the maximum income level of the 
income categories referred to in this section, with appropriate 
adjustments for unit size as measured by the number of 
bedrooms. 
(d) TRANSITION.— 
(1) FNMA M
O
R
T
G
A
G
E PURCHASES.—Notwithstanding any 
other provision of this section, during the 2-year period begin-
ning on January 1, 1993, the special affordable housing goal 
for the Federal National Mortgage Association shall include 
mortgage purchases of not less than $2,000,000,000 (for such 
2-year period), with one-half of such purchases consisting of 
mortgages on single family housing and one-half consisting 
of mortgages on multifamily housing. 
(2) FHLMC M
O
R
T
G
A
G
E PURCHASES.—Notwithstanding any 
other provision of this section, during the 2-year period begin-
ning on January 1, 1993, the special affordable nousing goal 
for the Federal Home !Loan Mortgage Corporation shall include 
mortgage purchases of not less than $1,500,000,000 (for such 
2-year period), with one-half of such purchases consisting of 
mortgages on single family housing and one-half consisting 
of mortgages on multifamily housing. 
(3) INCOME CHARACTERISTICS FOR MORTGAGE PURCHASES.— 
(A) MULTIFAMILY MORTGAGES.—The special affordable 
housing goals established under paragraphs (1) and (2) 
shall provide that, of mortgages on multifamily housing 
59-194 O—93 
11 : QL 3 (Pt. 5) 
106 STAT. 3960 
PUBLIC LAW 102-550—OCT. 28, 1992 
that are purchased and contribute to the achievement of 
such goals— 
(i) 45 percent shall be mortgages on multifamily 
housing affordable to low-income families; and 
(ii) 55 percent shall be mortgages on multifamily 
housing in which— 
(I) at least 20 percent of the units are afford-
able to families whose incomes do not exceed 50 
percent of the median income for the area; or 
(II) at least 40 percent of the units are afford-
able to very low-income families. 
(B) SINGLE FAMILY MORTGAGES.—The special affordable 
housing goals established imder paragraphs (1) and (2) 
shall provide that, of mortgages on single fandly housing 
that are purchased and contribute to the achievement of 
such goals— 
(i) 45 percent shall be mortgages of low-income 
famiUes who live in census tracts in which the median 
income does not exceed 80 percent of the area median 
income; and 
(ii) 55 percent shall be mortgages of very low-
income families. 
(C) COMPLIANCE WITH SPECIAL AFFORDABLE HOUSING 
GOALS.—Only the portion of mortgages on multifamily 
housing purchased by an enterprise that are attributable 
to units affordable to low-income families shall contribute 
to the achievement of the special affordable housing goals 
under subparagraph (AXii). 
(4) IMPLEMENTATION.—The Secretary shall establish any 
requirements necessary to implement the transition provisions 
under this subsection by notice, after providing the enterprises 
with an opportunity to review and comment not less than 
30 days before the issuance of such notice. Such notice shall 
be issued not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act and 
shall be effective upon issuance. 
12 use 4564. 
SEC. 1334. CENTRAL CITIES, RURAL AREAS, AND OTHER UNDER* 
SERVED AREAS HOUSING GOAL. 
(a) IN GENERAL.—^The Secretary shall establish an annual goal 
for the purchase by each enterprise of mortgages on housing located 
in central cities, rural areas, and other underserved areas. The 
Secretary may establish separate subgoals within the goal under 
this section and such subgoals shall not be enforceable under the 
provisions of section 1336, any other provision of this title, or 
any provision of the Federal National Mortgage Association Charter 
Act or the Federal Home Loan.Mortgage Corporation Act. 
(b) FACTORS TO BE APPLIED.—In establishing the housing goal 
under tiiis section, the Secretary shall consider— 
(1) urban and rural housing needs and the housing needs 
of underserved areas; 
(2) economic, housing, and demographic conditions; 
(3) the performance and efforts of the enterprises toward 
achieving the central cities, rural areas, and other underserved 
areas housing goal in previous years; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3961 
(4) the size of the conventional mortgage market for central 
cities, rurcd areas, and other underserved areas relative to 
the size of the overall conventional mortgage market; 
(5) the abihty of the enterprises to lead the industry in 
making mortgage credit available throughout the United States, 
includmg central cities, rural areas, and other underserved 
areas; and 
(6) the need to maintain the sound financial condition 
of the enterprises. 
(c) LOCATION OF PROPERTIES.—The Secretary shall monitor the 
performance of each enterprise in carrying out this section and 
shall evaluate such performance (for purposes of section 1336) bcuied 
on tiie location of the properties subject to mortgages purchased 
by each enterprise. 
(d) TRANSITION.— 
(1) INTERIM TARGET.—^Notwithstanding any other provision 
of tMs section, during the 2-year period beginning on January 
1, 1993, the annual target under this section for purchases 
by each enterprise of mortgages on housing located m central 
cities shall be 30 percent of the total number of dwelling units 
financed by mortgage purchases of the enterprise. 
(2) INTERIM GOAL.—^During such 2-vear period, the Sec-
retary shall esteblish a separate annual goal for each enter-
prise, the achievement of which shall require— 
(A) an enterprise that is not meeting the target under 
paragraph (1) upon January 1, 1993, to improve its 
performance relative to such torget annually and, to the 
maximum extent feasible, to meet such target at the conclu-
sion of such 2-year period; and 
(B) an enterprise that is meeting the target under 
paragraph (1) upon January 1, 1993, to improve its 
performance relative to the target. 
(3) DEFINITION OF CENTRAL CITY.—For pui^rases of this 
subsection, the term "central city" means any political subdivi-
sion designated as a central city by the Office of Management 
and Budget. 
(4) IMPLEMENTATION.—The Secretary shall esteblish any 
requiremente necessaiy to implement the transition provisions 
under this subsection by notice, afi«r providing the enterprises 
with an opportunity to review and comment not less than 
30 days before the issuance of such notice. Such notice shall 
be issued not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act and 
shall be effective upon issuance. 
SEC. 1335. OTHER REQUIREMENTS. 
12 USC 4565. 
To meet the low- and moderate-income housing goal under 
section 1332, the special affordable housing goal under section 
1333, and the central cities, rural areas, and other underserved 
areas housing goal under section 1334, each enterprise shall— 
(1) design programs and producte that fadlitete the use 
of assist£uice provided by the Federal Government and Stete 
and local govemmente; 
(2) develop relationships with nonprofit and for-profit 
organizations that develop and finance housing and with stete 
and local govemmente, including housing finance agencies; 
(3) take affirmative steps to^ 
106 STAT. 3962 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) assist primary lenders to make housing credit avail-
able in areas with concentrations of low-income and minor-
ity families, and 
(B) assist insured depository institutions to meet their 
obligations under the Community Reinvestment Act of 
1977, 
which shall include developing appropriate and prudent under-
writing standards, business practices, repurchase requirements, 
pricing, fees, and procedures; and 
(4) develop the institutional capacity to help finance low-
and moderate-income housing, including housing for first-time 
homebuyers. 
12 use 4566. 
SEC. 1336. MONITORING AND ENFORCING COMPLIANCE WITH HOUS-
ING GOALS. 
(a) IN GENERAL.— 
(1) AUTHORITY.—^The Secretary shall monitor and enforce 
compliance with the housing goals established under sections 
1332,1333, and 1334, as provided in this section. 
(2) GUIDELINES.—^The Secretary shall establish guidelines 
to measure the extent of compliance with the housing goals, 
which may assign full credit, partial credit, or no credit toward 
achievement of the housing goals to different categories of 
mortgage purchase activities of the enterprises, based on such 
criteria as the Secretary deems appropriate. 
(3) EXTENT OF COMPLIANCE.—In determining compliance 
with the housing goals established under this subpart, the 
Secretary— 
(A) shall consider any single mortgage purchased by 
an enterprise as contributing to the achievement of each 
housing goal for which such mortgage purchase qualifies; 
and 
(B) may take into consideration the number of housing 
units financed by any mortgage on housing purchased by 
an enterprise. 
(b) NOTICE AND DETERMINATION OF FAILURE TO MEET GOALS.— 
(1) NOTICE.—If the Secretary determines that an enterprise 
has failed, or that there is a substantial probability that an 
enterprise will fsdl, to meet any housing goal establisned under 
section 1332, 1333, or 1334, the Secretary shall provide written 
notice to the enterprise of such a determination, the reasons 
for such determination, the requirement to submit a housing 
plan imder subsection (c) of this section, and the information 
on which the Secretary based the determination or imposed 
such requirement. 
(2) RESPONSE PERIOD.— 
(A) IN GENERAL.—^During the 30-day period beginning 
on the date that an enterprise is provided notice under 
paragraph (1), the enterprise may submit to the Secretary 
any written information that the enterprise considers 
appropriate for consideration by the Secretary in determin-
ing whether such failure has occurred or whether the 
achievement of such goal was or is feasible. 
(B) EXTENDED PERIOD.—^The Secretary may extend the 
period under subparagraph (A) for good cause for not more 
than 30 additional days. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3963 
(C) SHORTENED PERIOD.—^The Secretary may shorten 
the period under subparagraph (A) for good cause. 
(D) FAILURE TO RESPOND.—^The failure of an enterprise 
to provide information during the 30-day period under this 
paragraph (as extended or shortened) shall waive an^ ri^ht 
of the enterprise to comment on the proposed determination 
or action of the Secretary. 
(3) CONSIDERATION OF INFORMATION AND DETERMINATION.— 
(A) IN GENERAI^.—^After the expiration of the response 
period imder paragraph (2) or upon receipt of information 
provided during such period by the enterprise, whichever 
occurs earlier, the Secretary shall determine (i) whether 
the enterprise has failed, or there is a substantial prob-
ability that the enterprise will fail, to meet the housing 
goal, and (ii) whether (taking into consideration market 
and economic conditions and the financial condition of the 
enterprise) the achievement of the housing goal was or 
is feasible. 
(B) CONSIDERATIONS.—In making such determinations, 
the Secretary shall take into consideration any relevant 
information 
submitted by the enterprise during 
the 
response period. 
(C) NOTICE.—The Secretary shall provide written 
notice to the enterprise, the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives, 
and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, of— 
(i) each determination that an enterprise has 
failed, or that there is a substantial probability that 
the enterprise will fail, to meet a housing goal; 
(ii) each determination that the achievement of 
a housing goal was or is feasible; and 
(iii) the reasons for each such determination. 
Such notice shall respond to any information submitted 
during the respons<} period, 
(c) HOUSING PLANS.— 
(1) REQUIREMENT.—If the Secretary finds pursuant to sub-
section (b), that an enterprise has failed, or that there is a 
substantial probability that an enterprise will fail, to meet 
any housing goal established under section 1332, 1333, or 1334, 
and that the achievement of the housing goal was or is feasible, 
the Secretary shall require the enterprise to submit a housing 
plan under this subsection for approval by the Secretary. 
(2) CONTENTS.—Each housing plan shall be a feasible plan 
describing the specific actions the enterprise will take— 
(A) to achieve the goal for the next calendar year; 
or 
(B) if the Secretary determines that there is a substan-
tial probability that the enterprise will fail to meet a goal 
in the current year, to make such improvements as are 
reasonable in the remainder of such year. 
The plan shall be sufficiently specific to enable the Secretary 
to monitor compliance i)eriodicalIy. 
(3) DEADLINE FOR SUBMISSION.—The Secretary shall, by Regulations. 
regulation, establish a deadline for an enterprise to submit 
a housing plan to the Secretary, which may not be more than 
45 days after the enterprise is provided notice under subsection 
106 STAT. 3964 
PUBLIC LAW 102-550—OCT. 28, 1992 
(bX3) that a housing plan is required. The regulations shall 
provide that the Secretary may extend the deadline to the 
extent that the Secretary determines necessary. Any extension 
of the deadline shall be in writing and for a time certain. 
(4) APPROVAL.—^The Secretary shall review each housing 
plan submitted under this subsection and, not later than 30 
days after submission of the plan, approve or disapprove the 
plan. The Secretary may extend the period for approval or 
disapproval for a single additional 30-day period if the Secretary 
determines it necessary. The Secretary shall approve any plan 
that the Secretanr determines is likely to succeed, and conforms 
with the Federal National Mortgage Association Charter Act 
or the Federal Home Loan Mortage Corporation Act (as 
applicable), this title, and any other applicable laws and regula-
tions. 
(5) NOTICE OF APPROVAL AND DISAPPROVAL.—The Secretary 
shall provide written notice to any enterprise submitting a 
housing plan of the approval or disapproval of the plan (which 
shall include the reasons for any disapproval of the plan) and 
of any extension of the period for approval or disapproval. 
(6) RESUBMISSION.—If the initial housing plan suomitted 
by an enterprise is disapproved, the enterprise shall submit 
an amended plan acceptable to the Secretary within 30 days 
or such longer period that the Secretary determines is in tne 
public interest. 
12 use 4567. 
SEC. 1337. REPORTS DURING TRANSITION. 
Each enterprise shall submit to the Secretary, the Committee 
on Banking, Finance and Urban Affairs of the House of Representa-
tives, and the Committee on Banking, Housing, and Urban Affairs 
of the Senate, a report for each transitional housing goal for the 
enterprise imder section 1332(d), 1333(d), or 1334(d), describing 
the actions the enterprise plans to take to meet such goal. Each 
such report shall be submitted within 45 days after the establish-
ment of the goal for which the report is submitted. 
12 use 4562 
SEC. 1338. EFFECTIVE DATE OF TRANSITION GOALS. 
"°^ 
The housing goals established under sections 1332(d), 1333(d), 
and 1334(d) shall not become effective until January 1,1993. 
Subpart C—^Enforcement of Housing Goals 
12 use 4581. 
SEC. 1341. CEASE-AND-DESIST PROCEEDINGS. 
(a) GROUNDS FOR ISSUANCE.—The Secretary may issue and 
serve a notice of charges under this section upon an enterprise 
if, in the determination of the Secretary— 
(1) the enterprise has failed to submit a housing plan 
that substantially complies with section 1336(c) within the 
applicable period; 
(2) the enterprise is engaging or has engaged, or the Sec-
retary has reasonable cause to believe that the enteiprise is 
about to engage, in an^ failure to make a good faith effort 
to comply with a housing plan for the enterprise submitted 
and approved tuider section 1336(c); or 
(3) the enterprise has failed to submit the information 
required under subsection (m) or (n) of section 309 of the 
Federal National Mortgage Association Charter Act, subsection 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3965 
• \ 
(e) or (f) of section 307 of the Federal Home Loan Mortgage 
Corporation Act, or section 1337 of this title. 
(b) PROCEDURE.— 
(1) NOTICE OF CHARGES.—^Each notice of charges shall con-
tain a statement of the facts constituting the alleged conduct 
and shall fix a time and place at which a hearing will be 
held to determine on the record whether an order to cease 
and desist from such conduct should issue. 
(2) ISSUANCE OF ORDER.—If the Secretary finds on the 
record made at such hearing that any conduct specified in 
the notice of charges has been established (or the enterprise 
consents pursuant to section 1342(aX4)), the Secretary may 
issue and serve upon the enterprise an order requiring the 
enterprise to (A) submit a housing plan in compliance with 
section 1336(c), (B) comply with the housing plan, or (C) provide 
the information required imder subsection (m) or (n) of section 
309 of the Federal National Mortgage Association Charter Act, 
subsection (e) or (f) of section 307 of the Federal Home Loan 
Mortgage Corporation Act, or section 1337 of this title. 
(c) EFFECTIVE DATE.—^An order imder this section shall become 
effective upon the expiration of the 30-day period beginning on 
the service of the order upon the enterprise (except in the case 
of an order issued upon consent, which shall become effective at 
the time specified therein), and shall remain effective and enforce-
able as provided in the order, except to the extent that the order 
is stayed, modified, terminated, or set aside by action of the Sec-
retary or otherwise, as provided in this subpart. 
(d) TRANSITION PERIOD LIMITATION.—The Secretary may not 
impose any cease-and-desist order imder this section for any failure 
by an enterprise, during the 2-year period beginning on the January 
1, 1993, to comply with an approved housing plan, imless the 
Secretary determines that the enterprise has mtentionally failed 
to make a good faith effort to comply with the approved plan. 
SEC. 1342. HEARINGS. 
12 USC 4582. 
(a) REQUIREMENTS.— 
(1) VENUE AND RECORD.—Any hearing under section 1341 
or 1345 shall be held on the record and in the District of 
Columbia. 
(2) TIMING.—^Any such hearing shall be fixed for a date 
not earlier than 30 days nor later than 60 days after service 
of the notice of charges imder section 1341(bXl) or determina-
tion to impose a penalty under section 1345(cXl), unless an 
earlier or a later date is set by the hearing officer at the 
request of the enterprise served. 
(3) PROCEDURE.—Any such hearing shall be conducted in 
accordance with chapter 5 of title 5, United States Code. 
(4) FAILURE TO APPEAR.—If the enterprise served fails to 
appear at the hearing through a duly authorized representative, 
such enterprise shall be deemed to have consented to the issu-
ance of the cease-and-desist order or the imposition of the 
penalty for which the hearing is held. 
(b) ISSUANCE OF ORDER.— 
(1) IN GENERAL.—^After any such hearing, and within 90 
days after the enterprise has been notified that the case has 
been submitted to the Secretary for final decision, the Secretary 
shall render the decision (which shall include findings of fact 
106 STAT. 3966 
PUBLIC LAW 102-550—OCT. 28, 1992 
upon which the decision is predicated) and shall issue and 
serve upon the enterprise an order or orders consistent with 
the provisions of this subpart. 
(2) MODIFICATION.—Judicial review of any such order shall 
be exclusively as provided in section 1343. Unless such a peti-
tion for review is timely filed as provided in section 1343, 
and thereafter until the record in the proceeding has been 
filed as so provided, the Secretary may at any time, modify, 
terminate, or set aside any such order, upon such notice and 
in such manner as the Secretary considers proper. Upon such 
filing of the record, the Secretary may modify, terminate, or 
set aside any such order with permission of the court. 
12 use 4583. 
SEC. 1343. JUDICIAL REVIEW. 
(a) COMMENCEMENT.—^An enterprise that is a party to a 
proceeding imder section 1341 or 1345 may obtain review of any 
final order issued under such section by filing in the United States 
Court of Appeals for the District of Coliunbia Circuit, within 30 
days after the date of service of such order, a written petition 
praying that the order of the Secretary be modified, terminated, 
or set aside. The clerk of the court shall transmit a copy of Uie 
petition to the Secretary. 
(b) FILING OF RECORD.—^Upon receiving a copy of a petition, 
the Secretary shall file in the coiut the record in the proceeding, 
as provided in section 2112 of title 28, United States Code. 
(c) JURISDICTION.—Upon the filing of a petition, such court 
shall have jurisdiction, which upon the filing of the record by 
the Secretary shall (except as provided in the last sentence of 
section 1342(bX2)) be exclusive, to affirm, modify, terminate, or 
set aside, in whole or in part, the order of the Secretarv. 
(d) REVIEW.—Review of such proceedings shall be governed 
by chapter 7 of title 5, United States Code. 
(e) ORDER To PAY PENALTY.—Such court shall have the author-
ity in any such review to order payment of any penalty imposed 
by the Secretary under this subpart. 
(f) No AUTOMATIC STAY.—^The commencement of proceedings 
for judicial review under this section shall not, unless specifically 
ordered by the court, operate as a stay of any order issued by 
the Secretary. 
12 use 4584. 
SEC. 1344. ENFORCEMENT AND JURISDICTION. 
(a) ENFORCEMENT.—^The Secretary may request the Attorney 
General of the United States to bring an action in the United 
States District Court for the District of Columbia for the enforce-
ment of any effective notice or order issued under section 1341 
or 1345. Such court shall have jurisdiction and power to order 
and require compliance herewith. 
(b) LIMITATION ON JURISDICTION.—Except as otherwise provided 
in this subpart, no court shall have jurisdiction to affect, by irgunc-
tion or otherwise, the issuance or enforcement of any notice or 
order under section 1341 or 1345, or to review, modi^, suspend, 
terminate, or set aside any such notice or order. 
12 u s e 4585. 
SEC. 134S. CIVIL MONEY PENALTIER 
(a) AUTHORITY.—^The Secretary may impose a civil money pen-
alty, in accordance with the provisions of this section, on any 
enterprise that has failed— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3967 
(1) to submit a housing plan that substantially complies 
with section 1336(c) wiithin the applicable period; 
(2) to make a good faith effort to comply with a housing 
plan for the enterprise submitted and approved under section 
1336(c); or 
(3) to submit the information required under subsection 
(m) or (n) of section 309 of the Federal National Mortgage 
Association Charter Act, subsection (e) or (f) of section 307 
of the Federal Home Ix>an Mortgage Corporation Act, or section 
1337 of this title. 
(b) AMOUNT OF PENALTY.—^The amount of the penalty, as deter-
mined by the Secretary, may not exceed— 
(1) for any failiire described in subsection (aXD, $25,000 
for each day that the failure occurs; and 
(2) for any failure described in subsection (a) (2) or (3), 
$10,0()0 for each day that the failure occurs. 
(c) PROCEDURES.— 
(1) ESTABLISHMENT.—^The Secretary shall establish stand-
ards and procedures governing the imposition of civil money 
penalties under this section. Such standards and procedures— 
(A) shall pro^ade for the Secretary to notify the enter-
prise in writing of the Secretary's determination to impose 
the penalty, which shall be made on the record; 
(B) shall provide for the imposition of a penalty only 
after the enterprise has been given an opportunity for 
a hearing on the record pursuant to section 1342; and 
(C) may provide for review by the Director for any 
determination or order, or interlocutory ruling, arising from 
a hearing. 
(2) FACTORS IN DETERMINING AMOUNT OF PENALTY.—In 
determining the amount of a penalty under this section, the 
Secretary shall give consideration to such factors as the gravity 
of the offense, any Mstory of prior offenses, ability to pay 
the penalty, ii\jury to the public, benefits received, deterrence 
of future violations, and such other factors as the Secretary 
may determine, by regulation, to be appropriate. 
(d) ACTION TO COLLECT PENALTY.—If an enterprise fails to 
comply with an order by the Secretary imposing a civil money 
penalty under this section, after the order is no longer subject 
to review as provided by sections 1342 and 1343, the Secretiary 
may request the Attorney (jeneral of the United States to bring 
an action in the United States District Court for the District of 
Columbia to obtain a monetary judgment against the enterprise 
and such other relief as may be available. The monetary judgment 
may, in the court's discretion, include the attorneys fees and other 
expenses incurred by the United States in connection with the 
action. In an action under this subsection, the validity and appro-
priateness of the order imposing the penalty shall not be subject 
to review. 
(e) SETTLEMENT BY SECRETARY.—The Secretarv may com-
promise, modify, or remit any civil money penalty which may be, 
or has been, imposed under this section. 
(D TRANSITION PERIOD LIMITATION.—The Secretary may not 
impose any civil money penalty under this section for any failure 
by an enterprise, during the 2-year period beginning on January 
1, 1993, to comply wim an approved housing plan, unless tiie 
106 STAT. 3968 
PUBLIC LAW 102-550—OCT. 28, 1992 
Secretary determines that the enterprise has intentionally failed 
to make a good faith effort to comply with an approved plan, 
(g) DEPOSIT OF PENALTIES.—The Secretai;^ shall deposit any 
civil money penalties collected imder this section into the general 
fund of the Treasury. 
12 use 4586. 
SEC. 1346. PUBUC DISCLOSURE OF FINAL ORDERS AND AGREEMENTS. 
(a) IN GENERAL.—^The Secretary shall make available to the 
public— 
(1) any written agreement or other written statement for 
which a violation may be redressed by the Secretary or any 
modification to or termination thereof unless the (Secretary, 
in the Secretary's discretion, determines that public disclosure 
would be contrary to the public interest or determines under 
subsection (c) that public disclosure would seriously threaten 
the financial health or security of the enterprise; 
(2) any order that is issued with respect to any administra-
tive enforcement proceeding initiated by the Secretary under 
this subpart and that has become final in accordance with 
sections 1342 and 1343; and 
(3) an^ modification to or termination of any final order 
made public pursuant to this subsection. 
(b) HEARINGS.—^All hearings with respect to any notice of 
charges issued by the Secretary shall be open to the public, unless 
the Secretary, in the Secretary's discretion, determines that holding 
an open hearing would be contrary to the public interest. 
(c) DELAY OF PUBUC DISCLOSURE UNDER EXCEPTIONAL CIR-
CUMSTANCES.—If the Secretary makes a determination in writing 
that the public disclosure of any final order pursuant to subsection 
(a) would seriously threaten the financial soundness of the enter-
prise, the Secretary may delay the public disclosure of such order 
for a reasonable time. 
(d) DOCUMENTS FILED UNDER SEAL IN PUBUC ENFORCEMENT 
HEARINGS.—^The Secretary may file any document or part thereof 
under seal in an^ hearing under this subpart if the Secretary 
determines in writing that disclosure thereof would be contrary 
to the public interest. 
Records. 
(e) RETENTION OF DOCUMENTS.—The Secretary shall keep and 
maintain a record, for not less than 6 years, of all documents 
described in subsection (a) and all enforcement agreements and 
other supervisory actions and supporting documents issued with 
respect to or in connection with any enforcement proceeding initi-
ated by the Secretary under this subpart. 
(f) DISCLOSURES TO CONGRESS.—^This section mav not be con-
strued to authorize the withholding, or to prohibit the disclosure, 
of any information to the Congress or any committee or subcommit-
tee thereof. 
12 use 4587. 
SEC. 1347. NOTICE OF SERVICE. 
Any service required or authorized to be made by the Secretaiy 
under this subpart may be made by registered mail or in such 
other manner reasonably calculated to give actual notice, as the 
Secretary may by regulation or otherwise provide. 
12 u s e 4588. 
SEC. 1348. SUBPOENA AUTHORITY. 
(a) IN GENERAL.—^In the course of or in connection with anv 
administrative proceeding under this subpart, the Secretary shaU 
have the authority— 
,. 
^ 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3969 
(1) to administer oaths and affirmations; 
(2) to take and preserve testimony under oath; 
(3) to issue siibpoenas and subpoenas duces tecum; and 
(4) to revoke, quash, or modify subpoenas and subpoenas 
duces tecum issued by the Secretary. 
(b) WITNESSES AND DOCUMENTS.—The attendance of witnesses 
and the production of documents provided for in this section may 
be required from any place in any State at any designated place 
where such proceeding is being conducted. 
(c) ENFORCEMENT.—^The Secretary may request the Attorney 
General of the United States to brin^ an action in the United 
States district court for the judicial district in which such proceeding 
is being conducted, or where the witness resides or conducts busi-
ness, or the United States District Court for the District of Colum-
bia, for enforcement of any subpoena or subpoena duces teciun 
issued pursuant to this section. Such courts shall have jurisdiction 
and power to order and require compliance therewith. 
(d) FEES AND EXPENSES.—^Witnesses subpoenaed under this 
section shall be paid the same fees and mileage that are paid 
witnesses in the district courts of the United States. Any court 
having jurisdiction of any proceeding instituted under this section 
by an enterprise may allow to any such party such reasonable 
expenses ana attorneys fees as the court deems just and proper. 
Such expenses and fees shall be paid by the enterprise or from 
its assets. 
SEC. 1348. REGULATIONS. 
12 USC 4589. 
The Secretary shall issue any final regulations necessary to 
implement the provisions of this part (not including the provisions 
of sections 1332(d), 1333(d), and 1334(d), relating to transition 
housing goals) not later than the expiration of the 18-month period 
beginning on the date of the enactment of this Act. Such regulations 
shall be issued after notice and opportunity for public comment 
pursuant to the provisions of section 553 of title 5, United States 
Code. 
PART 3—MISCELLANEOUS PROVISIONS 
SEC. 1361. AMENDMENTS TO TITLE S, UNITED STATES CODE. 
(a) DIRECTOR AT LEVEL II OF EXECUTIVE SCHEDULE.—Section 
5313 of title 5, United States Code, is amended by inserting at 
the end the foUovdng new item: 
"Director of the Office of Federal Housing Enterprise Over-
sight, Department of Housing and Urban Development.". 
(b) EXCLUSION FROM SENIOR EXECUTIVE SERVICE.—Section 
3132(aXlXD) of title 5, United States Code, is amended bv inserting 
*^he OfHce of Federal Housing Enterprise Oversight of me Depart-
ment of Housing and Urban Development," after "Farm Credit 
Administration,". 
SEC. 1362. PROHIBITION OF MERGER OF OFFICE. 
Section 5 of the Department of Housing and Urban Develop-
ment Act (42 U.S.C. 3534) is amended by adding at the end the 
following new subsection: 
*
*
(
d
) Notwithstanding any other provision of this Act, the Sec-
retary may not merge or consolidate the Office of Federal Housing 
Enterprise Oversight of the Department, or any of the functions 
106 STAT. 3970 
PUBLIC LAW 102-550—OCT. 28, 1992 
or responsibilities of such Office, with any function or program 
administered by the Secretary.". 
SEC. ISn. PROTECTION OF CONFIDENTIAL INFORBIATION. 
Section 1905 of title 18, United States Code, is amended by 
inserting "any i>erson acting on behalf of the Office of Federal 
Housing Enterprise Oversight," after "or agency thereof,". 
12 u s e 4601. 
SEC. 1364. REVIEW OF UNDERWRITING GUIDELINEa 
(a) STUDY.—^Each of the enterprises shall conduct a study to 
review the underwriting guidelines of the enterprise. The studies 
shall examine— 
(1) the extent to which the underwriting guidelines prevent 
or inhibit the purchase or securitization of mortgages for hous-
ing located in mixed-use, urban center, and predominantly 
mmority neighborhoods and for housing for low- and moderate-
income famihes; 
(2) the standards employed by private mortgage insurers 
and the extent to which such standiards inhibit the purchase 
and securitization by the enterprises of mortgages aescribed 
in paragraph (1); and 
(3) the implications of implementing underwriting stand-
ards that— 
(A) establish a downpayment requirement for mortga-
gors of 5 percent or less; 
(B) allow the use of cash on hand as a source for 
downpayments; and 
(U) approve borrowers who have a credit history of 
delinquencies if the borrower can demonstrate a satisfac-
tory credit history for at least the 12-month period ending 
on the date of the application for the mortgage. 
(b) REPORT.—^Not later than the expiration of the 1-year period 
beginning on the date of the enactment of this Act, each enterprise 
shall submit to the Secretary, the Committee on Banking, Finance 
and Urban Affairs of the House of Representatives, and the Commit-
tee on Banking, Housing, and Urban Affairs of the Senate a report 
regarding the study conducted by the enterprise under subsection 
(a). Each report shall include any recommendations of the enterprise 
for better meeting the housing needs of low- and moderate-income 
families. 
12 u s e 4602. 
SEC. ISW. STUDIES OF EFFECTS OF PRIVATIZATION OF FNMA AND 
FHLMC. 
(a) IN GENERAL.—The Comptroller General of the United 
States, the Secretary of Housing and Urban Development, the Sec-
retary of the Treasury, and the Director of the Congressional Budget 
Office shall each conduct and submit to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate, not later than the expiration of the 2-year period beginning 
on the date of the enactment of this Act, a study regardmg the 
desirability and feasibility of repealing the Federal charters of 
the Federal National Mortage Association and the Federal Home 
Loan Mortgage Corporation, eliminating any Federal sponsorship 
of the enterprises, and allowing the enterprises to continue to 
operate as fully private entities. 
(b) REQUIREMENTS.—^Each study shall particularly examine the 
effects of such privatization on— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3971 
(1) the requirements applicable to the Federal National 
Mortgage Association and the Federal Home Loan Mortgage 
Corporation under Federal law and the costs to the enterprises; 
(2) the cost of capital to the enterprises; 
(3) housing afTordability and availability and the cost of 
homeownership; 
(4) the level of secondary mortgage market competition 
subsequently available in the private sector; 
(5) whether increased amounts of capital would be nec-
essary for the enterprises to continue operation; 
(6) the secondary market for residential loans and the 
liquidity of such loans; and 
(7) any other factors that the Comptroller General, the 
Secretary of Housing and Urban Development, the Secretary 
of the Treasury, or the Director of the Congressional Budget 
OfiEice deems appropriate to enable the Congress to evaluate 
the desirability and feasibility of privatization of the 
enterprises. 
(c) INFORMATION.—^The Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation shall provide 
full and prompt access to the Comptroller General, the Secretary 
of Housing and Urban Development, the Secretary of the Treasury, 
and the Director of the Congressional Budget Office to any books, 
records, and other information requested for the purposes of 
conducting the studies under this section. 
(d) VIEWS OF THE FNMA AND FHLMC.--
(1) CONSIDERATION IN STUDIES.—In conducting the studies 
imder this section, the Comptroller General, the Secretary of 
Housing and Urban Development, the Secretary of the Treas-
ury, and the Director of the Congressional Budget OfRce shall 
each consider the views of the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation. 
(2) DIRECT REPORT.—The Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation 
may each report directly to the Committee on Banking, Finance 
and Urban Affairs of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate on its own analysis of the desirability and feasibility 
of repealing the Federal charters of the enterprises, eliminating 
any Federal sponsorship, and allowing the enterprises to con-
tinue to operate as fully private entities. 
SEC. 1366. TRANSITION. 
12 USC 4603. 
Before the expiration of the period ending 18 months after 
the appointment of the Director imder section 1312, any rules 
and regulations promulgated before the date of the enactment of 
this Act by the Secretary pursuant to the Federal National Mortgage 
Association Charter Act or the Federal Home Loan Mortgage Cor-
poration Act shall remain in effect unless modified, terminated, 
superseded, or revoked by operation of law or in accordance with 
law. Such rules and regulations shall terminate, effective upon Termination 
the expiration of such period. 
*
*
^
*
®
' 
106 STAT. 3972 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle B—Required Capital Levels for 
Enterprises and Special 
Enforcement 
Powers 
12 use 4611. 
SEC. 1361. RISK-BASED CAPITAL LEVELS. 
Regulations. 
(a) RISK-BASED C
A
P
I
T
A
L TEST.—The Director shall, by regula-
tion, establish a risk-based capital test under this section for the 
enterprises. When applied to an enterprise, the risk-based capital 
test shall determine the amount of total capital for the enterprise 
that is sufficient for the enterprise to maintain positive capital 
during a 10-year period in which the following circumstances occur 
(in this section referred to as the ''stress period ): 
(1) CREDIT RISK.—^With respect to mortgages owned or 
guaranteed by the enterprise and other obligations of the enter-
prise, -losses occur throughout the United States at a rate 
of default and severity (based on any measurements of default 
reasonably related to prevailing practice for that industry in 
determining capital adequacy) reasonably related to the rate 
and severity that occurred in contiguous areas of the United 
States containing an aggregate of not less than 5 percent of 
the total poptdation of the United States that, for a period 
of not less than 2 years, experienced the highest rates of default 
and severity of mortgage losses, in compsirison with such rates 
of default and severity of mortgage losses in other such areas 
for any period of such duration. 
(2) INTEREST RATE RISK.— 
(A) IN GENERAL.—^Interest rates decrease as described 
in subparagraph (B) or increase as described in subpara-
graph (C), whichever would require more capital for the 
enterprise. 
(B) DECREASES.—^The 10-year constant maturity Treas-
ury jrield decreases during the first year of the stress 
period and will remain at uie new level for the remainder 
of the stress period. The yield decreases to the lesser of— 
(i) 600 basis points below the average yield during 
the preceding 9 months, or 
(ii) 60 percent of the average yield during the 
preceding 3 years, 
but in no case to a yield less than 50 percent of the 
average jrield during the preceding 9 months. 
(C) INCREASES.—^The 10-year constant maturity Treas-
ury yield increases during the first year of the stress period 
and will remain at the new level for the remainder of 
the stress period. The jdeld increases to the greater of— 
(i) 600 basis points above the average 3deld during 
the preceding 9 months, or 
(ii) 160 percent of the average yield during the 
preceding 3 years, 
but in no case to a yield greater than 175 percent of 
the average yield during the preceding 9 months. 
(D) DIFFERENT TERMS T
O MATURITY.—^Yields of Treas-
ury instruments with other terms to maturity will change 
relative to the 10-year constant maturity Treasury yield 
in patterns and for durations that are reasonably related 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3973 
to historical experience and are judged reasonable by the 
Director. 
(E) LARGE INCREASES IN YIELDS.—If the 10-year con-
stant maturity Treasury yield is assumed to increase by 
more than 50 percent over the average yield during the 
preceding 9 months, the Director shall adjust the losses 
in paragraphs (1) and (3) to reflect a correspondingly higher 
rate of general price inflation. 
(3) NEW BUSINESS.— 
(A) IN GENERAL.—^Any contractual commitments of the 
enterprise to purchase mortgages or issue securities will 
be fulfilled. The characteristics of resulting mortgage pur-
chases, securities issued, and other financing will be 
consistent with the contractual terms of such commitments, 
recent experience, and the economic characteristics of the 
stress period. No other purchases of mortgages shall be 
assumed, except as provided in subparagraph (B). 
(B) ADDITIONAL NEW BUSINESS.—The Director may, 
after consideration of each of the studies required by 
subparagraph (C), assume that the enterprise conducts 
additional new biisiness during the stress period consistent 
with the following— 
(i) A
M
O
U
N
f
T A
N
D P
R
O
D
U
C
T TYPES.—The amount and 
types of mortgages purchased and their financing will 
be reasonably related to recent experience and the 
economic characteristics of the stress period. 
(ii) LOSSES.—Default and loss severity characteris-
tics of mortgages purchased will be reasonably related 
to historical experience. 
(iii) PRICING.—^Prices charged by the enterprise in 
purchasing new mortgages will be reasonably related 
to recent experience and the economic characteristics 
of the stress period. The Director may assume that 
a reasonable period of time would lapse before the 
enterprise would recognize and react to the characteris-
tics of the stress period. 
(iv) INTEREST RATE RISK.—Interest rate risk on 
new mortgages purchased will occur to an extent 
reasonably related to historical experience. 
(v) RESERVES.—^The enterprise must maintain 
reserves during and at the end of the stress period 
on new business conducted during the first 5 years 
of the stress period reasonably related to the expected 
future losses on such business, consistent with gen-
erally accepted accounting principles and industry 
accounting practice. 
(C) STUDIES.—^Within 1 year after regulations are first 
issued imder subsection (e), the Director of the Congres-
sional Budget Office, and the Comptroller General of the 
United States shall each submit to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the 
Committee on Banking, Finance and Urban Affairs of the 
House of Representatives a study of the advisability and 
appropriate form of any new business assumptions luider 
subparagraph (B). 
106 STAT. 3974 
PUBLIC LAW 102-550—OCT. 28, 1992 
(D) EFFECTIVE DATE.—^The provisions of subparagraph 
(B) shall become effective 4 years after regulations are 
first issued under subsection (e). 
(4) OTHER ACTIVITIES.—Losses or gains on other activities, 
including interest rate and foreign exchange hed^ng activities, 
shall be determined by the Director, on the basis of available 
information, to be consistent with the stress period. 
(b) CONSIDERATIONS.— 
(1) IN GENERAL.—^In establishing the risk-based capital test 
imder subsection (a), the Director shall take into account appro-
priate distinctions among types of mortgage products, dif-
ferences in seasoning of mortgages, and any other factors the 
Director considers appropriate. 
(2) CONSISTENCY.—^Characteristics of the stress period 
other than those specifically set forth in subsection (a), such 
as prepayment experience and dividend policies, will be those 
determined by the Director, on the basis of available informa-
tion, to be most consistent with the stress period. 
(c) RISK-BASED CAPITAL LEVEL.—For purposes of this subtitle, 
the risk-based capital level for an enterprise shall be equal to 
the sum of the following amounts: 
(1) CREDIT AND INTEREST RATE RISK.—The amount of total 
capital determined by applying the risk-based capital test under 
subsection (a) to the enterprise. 
(2) MANAGEMENT AND OPERATIONS RISK.—To provide for 
management and operations risk, 30 percent of tne amount 
of total capital determined by applying the risk-based capital 
test under subsection (a) to the enterprise. 
(d) DEFINITIONS.—For piuposes of this section: 
(1) SEASONING.—^The term "seasoning" means the change 
over time in the ratio of the unpaid principal balance of a 
mortgage to the value of the property by whioi such mortgage 
loan is secured, determined on an annual basis by region, 
in accordance with the Constant Quality Home Price Index 
published by the Secretary of Commerce (or any index of similar 
quality, authority, and public availability that is regularly used 
by the Federal Giovemment). 
(2) TYPE OF M
O
R
T
G
A
G
E PRODUCT.—The term "type of mort-
gage product" means a classification of one or more mortgage 
proiducts, as established by the Director, which have similar 
characteristics from each set of characteristics under the follow-
ing subparagraphs: 
(A) The prii;t>erty securing the mortgage is— 
(i) a residential property consisting of 1 to 4 dwell-
ing units; or 
(ii) a residential property consisting of more than 
4 dwelling units. 
(B) The interest rate on the mortgage is— 
(i) fixed; or 
(ii) adjustable. 
(C) The priority of the lien securing the mortgage 
18— 
(i) first; or 
. (ii) second or other. 
(D) The term of the mortgage is— 
(i) 1 to 15 years; 
(ii) 16 to 30 years; or 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3975 
(iii) more than 30 years. 
(E) The owner of the property is— 
(i) an owner-occupant; or 
(ii) an investor. 
(F) The unpaid principal balance of the mortgage— 
(i) will amortize completely over the term of the 
mortgage and will not increase significantly at any 
time during the term of the mortgage; 
(ii) will not amortize completely over the term 
of the mortgage and will not increase significantly 
at any time during the term of the mortgage; or 
(lii) may increase significantly at some time during 
the term of the mortgage. 
(G) Any other characteristics of the mortgage, as the 
Director may determine. 
(e) REGULATIONS.— 
(1) ISSUANCE.—The Director shall issue final regulations 
establishing the risk-based capital test imder this section not 
later than the expiration of the 18-month period beginning 
on the date of the appointment of the Director. Such regulations 
shall be issued after notice and opportunity for public comment 
gursuant to the provisions of section 553 of title 5, United 
tates Code, and shall take effect upon issuance. 
(2) CONTENTS.—^The regulations under this subsection shall 
contain specific requirements, definitions, methods, variables, 
and parameters used under the risk-based capital test and 
in implementing the test (such as loan loss severity, fioat 
income, loan-to-value ratios, taxes, jrield curve slopes, default 
experience, and prepayment rates). The regulations shall be 
sufficiently specific to permit an individual other than the 
Director to apply the test in the same manner as the Director. 
(3) CONFIDENTIALITY OF INFORMATION.—Any person that 
receives any book, record, or information from the Director 
or an enterprise to enable the risk-based capit£d test to be 
applied shall— 
(A) maintain the confidentiality of the book, record, 
or information in a manner that is generally consistent 
with the level of confidentiality established for the material 
by the Director or the enterprise; and 
(B) be exempt from section 552 of title 5, United States 
Code, with respect to the book, record, or information. 
(f) AVAILABILITY OF MODEL.—The Director shall provide copies 
of the statistical model or models used to implement the risk-
based capital test under this section to the Secretary, the Board 
of Governors of the Federal Reserve System, the Director of the 
Office of Management and Budget, the Comptroller General of 
the United States, and the Director of the Congressional Budget 
OfiEice. The Director shall make copies of such model or models 
available for public acquisition and may charge a reasonable fee 
for such copies. 
• 
SEC. 1382. MINIMUM CAPITAL LEVELS. 
12 USC 4612. 
(a) IN GENERAL.—^For purposes of this subtitle, the minimum 
capital level for each entetrprise shall be the sum o
f
— 
(1) 2.50 percent of the aggregate on-balance sheet assets 
of the enterprise, aei determined in accordance with generally 
accepted accounting principles; 
106 STAT. 3976 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) 0.45 percent of the unpaid principal balance of outstand-
ing mortgage-backed securities and substantiall}^ equivalent 
instruments issued or guaranteed by the enterprise that are 
not included in paragraph (1); and 
(3) 0.45 percent of other off-balance sheet obligations of 
the enterprise not included in paragraph (2) (excluding commit-
ments in excess of 50 percent of the average dollar amoimt 
of the commitments outstanding each quarter over the preced-
ing 4 quarters), except that uie Director shall a4just such 
percentage to reflect differences in the credit risk of such obliga-
tions in relation to the instruments included in paragraph 
(2). 
(b) TRANSITION.—^Notwithstanding subsection (a), during the 
18-month period beginning upon the date of the enactment oi this 
Act, the minimum capital level for each enterprise shall be the 
sum o
f
— 
(1) 2.25 percent of the aggregate on-balance sheet assets 
of the enterprise, as determined in accordance with generally 
accepted accounting principles; 
(2) 0.40 percent of the unpaid principal balance of outstand-
ing mortgage-backed securities and substantially equivalent 
instruments issued or guaranteed by the enterprise that are 
not included in paragraph (1); and 
(3) 0.40 percent of other off-balance sheet obligations of 
the enterprise not included in paragraph (2) (excluding commit-
ments in excess of 50 percent of the average dollar amount 
of the commitments outstanding each quarter over the preced-
ing 4 quarters), except that the Director shall adjust such 
percentage to reflect differences in the credit risk of such obliga-
tions in relation to the instruments included in paragraph 
(2). 
12 use 4613. 
SEC. 1363. CRITICAL CAPITAL LEVELS. 
For purposes of this subtitle, the critical capital level for each 
enterprise shall be the simi o
f
— 
(1) 1.25 percent of the aggregate on-balance sheet assets 
of the enterprise, as determined m accordance with generally 
accepted accoimting principles; 
(2) 0.25 percent of the unpaid principal balance of outstand-
ing mortgage-backed securities and substantially equivalent 
instruments issued or guaranteed by the enterprise that are 
not included in paragraph (1); and 
(3) 0.25 percent of other off-balance sheet obligations of 
the enterprise not included in paragraph (2) (excluding commit-
ments in excess of 50 percent of the average dollar amount 
of the commitments outstanding each quarter over the preced-
ing 4 quarters), except that the Director shall adjust such 
percentage to reflect differences in the credit risk of such obliga-
tions in relation to the instruments included in paragraph 
(2). 
12 use 4614. 
SEC. 1364. CAPITAL CLASSIFICATIONS. 
(a) IN GENERAL.—For purposes of this subtitle, the Director 
shall classify the enterprises according to the following capital 
classifications: 
(1) ADEQUATELY CAPITALIZED.—An enterprise shall be 
classified as adequately capitalized if the enterprise— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3977 
(A) maintains an amount of total capital that is equal 
to or exceeds the risk-based capital level established for 
the enterprise under section 1361; and 
(B) maintains an amount of core capital that is equal 
to or exceeds the minimum capital level established for 
the enterprise undcsr section 1362. 
(2) UNDERCAPITAL]:ZED.—^An enterprise shall be classified 
as undercapitalized i
f
—
-
(A) the enterprise— 
(i) does not maintain an amoimt of total capital 
that is equal to or exceeds the risk-based capital level 
established for the enterprise; and 
(ii) maintains an amount of core capital that is 
equal to or exceeds the minimum capital level estab-
lished for the enterprise; or 
(B) the 
enterprise 
is 
otherwise 
classified 
as 
undercapitalized unaer subsection (bXD of this section. 
(3) SIGNIFICANTLY UNDERCAPITALIZED.—An enterprise shall 
be classified as significantly imdercapitalized i
f
— 
(A) the enterprise— 
(i) does not maintain an amount of total capital 
that is equal to or exceeds the risk-based capital level 
established for the enterprise; 
(ii) does not maintain an amount of core capital 
that is equal to or exceeds the minimiun capital level 
established for the enterprise; and 
(iii) maintains an amount of core capital that is 
equal to or exceeds the critical capital level established 
for the enterprise under section 1363; or 
(B) the enterprise is otherwise classified as signifi-
cantly undercapitalized under subsection (bX2) of this sec-
tion or section 1365(b). 
(4) CRITICALLY UNDERCAPITALIZED.—An enterprise shall be 
classified as critically undercapitalized i
f
— 
(A) the enterprise— 
(i) does not maintain an amount of total capital 
that is equal to or exceeds the risk-based capital level 
established for the enterprise; and 
(ii) does not maintain an amount of core capital 
that is equal to or exceeds the critical capital level 
for the enterprise; or 
(B) is otherwise classified as critically undercapitalized 
under subsection (bX3) of this section or section 1366(bX5). 
(b) DISCRETIONARY CLASSIFICATION.—If at any time the Director 
determines in writing that an enterprise is engaging in conduct 
not approved by the Director that could result in a rapid depletion 
of core capital or that the value of the property subject to mortgages 
held or securitized by the enterprise has decreased significantly, 
the Director may classify the enterprise— 
(1) as undercapitalized, if the enterprise is otherwise classi-
fied as adequately capitalized; 
(2) as significantly imdercapitalized, if the enterprise is 
otherwise classified as undercapitialized; and 
(3) as critically undercapitalized, if the enterprise is other-
wise classified as significantly undercapitalized. 
(c) QUARTERLY DETERMINATION.—^The Director shall determine 
the capital classification of the enterprises for purposes of this 
106 STAT. 3978 
PUBLIC LAW 102-550—OCT. 28, 1992 
subtitle on not less than a quarterly basis (and as appropriate 
under subsection (b)). The first such determination shall be made 
during the 3-month period beginning on the appointment of the 
Director. 
(d) IMPLEMENTATION.—^Notwithstanding any other provision of 
this section, during the period beginning on the date of the enact-
ment of this Act and ending upon the effective date of section 
1365 (as provided in section 1365(c)), an enterprise shall be classi-
fied as adequately capitalized if the enterprise maintains an amount 
of core capital that is equal to or exceeds the minimum capital 
level for the enterprise under section 1362. 
12 use 4615. 
SEC. 1366. SUPERVISORY ACTIONS APPUCABLE TO UNDERCAPITAL-
IZED ENTERPRISES. 
(a) MANDATORY ACTIONS.— 
(1) CAPITAL RESTORATION PLAN.—An enterprise that is 
classified as undercapitalized shall, within the time period pro-
vided in section 1369C (b) and (d), submit to the Director 
a capital restoration plan that complies with section 1369C 
and carry out the plan after approval. 
(2) RESTRICTION ON CAPITAL DISTRIBUTIONS.—An enterprise 
that is classified as undercapitalized may not make any capital 
distribution that would result in the enterprise being re-
classified 
as 
significantly 
undercapitalizea 
or 
critically 
undercapitalized. 
(b) DISCRETIONARY RECLASSIFICATION FROM UNDERCAPITALIZED 
TO SIGNIFICANTLY UNDERCAPITALIZED.—The Director may reclassify 
as significantly imdercapitalized an enterprise that is classified 
as undercapitalized (and the enterprise snail be subject to the 
provisions of section 1366) i
f
— 
(1) the enterprise does not submit a capital restoration 
plan that is substantially in compliance with section 1369C 
within the applicable period or the Director does not approve 
the capital restoration plan submitted by the enterprise; or 
(2) the Director determines that the enterprise has failed 
to make, in good faith, reasonable efforts necessary to comply 
with the capital restoration plan and fulfill the schedule for 
the plan approved by the Director. 
(c) EFFECTIVE DATE.—This section shall take effect upon the 
expiration of the 1-year period beginning on the date of the effective-
ness of the regulations issued under section 1361(e) establishing 
the risk-based capital test. 
12 use 4616. 
SEC. 1366. SUPERVISORY ACTIONS APPUCABLE TO SIGNIFICANTLY 
UNDERCAPITALIZED ENTERPRISES. 
(a) MANDATORY SUPERVISORY ACTIONS.— 
(1) CAPITAL RESTORATION PLAN.—An enterprise that is 
classified as significantly undercapitalized shall, within the 
time period under section 1369C (b) and (d), submit to the 
Director a capital restoration plan that complies with section 
1369C and carry out the plan after approval. 
(2) RESTRICTIONS ON CAPITAL DISTRIBUTIONS.— 
(A) PRIOR APPROVAL.—^An enterprise that is classified 
as si^ificantly undercapitalized may not make any capital 
distribution that would result in the enterprise being 
reclassified as critically imdercapitalized. An enterprise 
that is classified as significantly imdercapitalized enter-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3979 
prise may not make any other capital distribution unless 
the Director approves the distribution. 
(B) STANDARD FOR APPROVAL.—The Director may 
approve a capital distribution by an enterprise classified 
as significantly imdeircapitalized only if the Director deter-
mines that the distribution (i) wiU enhance the ability 
of the enterprise to meet the risk-based capital level and 
the minimum capital level for the enterprise promptly, 
(ii) will contribute to the long-term financial safety and 
soundness of the enterprise, or (iii) is otherwise in the 
public interest. 
(b) DISCRETIONARY SUPERVISORY ACTIONS.—In addition to any 
other actions taken by the Director (including actions \mder sub-
section (a)), the Director may, at any time, take any of the following 
actions with respect to an enterprise that is classified as signifi-
cantly imdercapitalized: 
(1) LIMITATION ON INCREASE IN OBUGATIONS.—Limit any 
increase in, or order the reduction of, any obligations of the 
enterprise, including off-balance sheet obligations. 
(2) LIMITATION ON GROWTH.—Limit or prohibit the growth 
of the assets of the enterprise or require contraction of the 
assets of the enterprise. 
(3) ACQUISITION OF NEW CAPITAL.—Require the enterprise 
to acquire new capital in a form and amount determined by 
the Director. 
(4) RESTRICTION OF ACTIVITIES.—^Require the enterprise to 
terminate, reduce, or modify any activity that the Director 
determines creates excessive risk to the enterprise. 
(5) RECLASSIFICATION FROM SIGNIFICANTLY TO CRITICALLY 
UNDERCAPITALIZED.—^The Director may reclassify as critically 
undercapitalized an enterprise that is classified as significantly 
undercapitalized (and the enterprise shall be subject to the 
provisions of section 1367) if— 
(A) the enterprise does not submit a capital restoration 
plan that is substantially in compliance with section 1369C 
within the applicable period or the Director does not 
approve the capital restoration plan submitted by the enter-
prise; or 
(B) the Director determines that the enterprise has 
failed to make, in good faith, reasonable efforts necessary 
to comply with the capital restoration plan and fulfill the 
schedule for the plan approved by the Director. 
(6) CONSERVATORSHIP.—^Appoint a conservator for the 
enterprise in accordance with the provisions of section 1369 
(excluding subsection (a) (1) and (2)), but only if the Director 
determines— 
(A) that the amovmt of core capital of the enterprise 
is less than the minimum capital level established for 
the enterprise under section 1362; and 
(B) that alternative remedies available to the Director 
under this title are not satisfactory. 
(c) EFFECTIVE DATE.—-This section shall take effect upon the 
first classification of the enterprises within capital classifications 
that occurs under section 1364. 
106 STAT. 3980 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 4617. 
SEC. 1367. APPOINTMENT OF CONSERVATORS FOR CRITICALLY 
UNDERCAPITAUZEO ENTERPRISEa 
(a) APPOINTMENT.— 
(1) IN GENERAL.—^Upon a determinatioii and notice under 
section 1368(d) that an enterprise is critically undercapitalized 
and not later than 30 days after providing notice under section 
1369(aX3), the Director shall appoint a conservator for the 
enterprise in accordance with the provisions of section 1369 
(excluding subsections (a) (1) and (2)). 
(2) EXCEPTION.—Notwithstanding paragraph (1), the Direc-
tor may determine not to appoint a conservator for an enter-
prise classified as critically undercapitalized, but only pursuant 
to a written finding by the Director, with the written concur-
rence of the Secretajry of the Treasury, that— 
(A) the appointment of a conservator would have seri-
ous adverse enects on economic conditions of nationcd finan-
cial markets or on the financial stability of the housing 
finance market; and 
(B) the public interest would be better served by taking 
some other enforcement action authorized under this title. 
(b) AUTHORITY.—^The Director shall have the authority to take 
any actions under sections 1365 and 1366 with respect to an enter-
prise under conservatorship. 
(c) APPROVAL OP ACHVITIES.— 
(1) CONSERVATOR.—^The conservator of any enterprise 
classified as critically undercapitalized may undertake an activ-
itv subject to the approval of the Secretary under section 1322 
of this title only with the additional approval of the Director. 
(2) No C
O
N
S
E
R
V
A
T
O
R
.
—
^
I
f the Director determines under 
subsection (aX2) not to appoint a conservator for an enterprise 
classified as critically unaercapitalized, the provisions of section 
1366 shall apply with respect to the enterprise. 
(d) EFFECTIVE DATE.—^This section shall take effect imon the 
first classification of the enterprises within capital classifications 
that occurs under section 1364. 
12 use 4618. 
SEC. 1368. NOTICE OF CLASSIFICATION AND ENFORCEMENT ACTION. 
(a) NOTICE.—^Before taking any action referred to in subsection 
(b), the Director shall provide to the enterprise written notice of 
tibe proposed action, which states ttie reasons for the proposed 
action and the information on which the proposed action is based. 
(b) APPLICABILITY.—^The requirements of subsection (a) shall 
apply to the following actions: 
(1) Classification or reclassification of an enterprise within 
a particular capital classification under section 1364. 
(2) Any discretionary supervisory action pursuant to section 
1365. 
(3) Any discretionary supervisory action pursuant to section 
1366 except a decision to appoint a conservator under section 
1366(bX6). 
Notice of classification under paragraph (1) and notice of super-
visory actions under paragraph (2) or (3) may be provided together 
in a single notice under subsection (a). 
(c) RESPONSE PERIOD.— 
(1) IN GENERAL.—^During the 30-day period beginning on 
the date that an enterprise is provided notice under subsection 
(a) of a proposed action, the enterprise may submit to the 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3981 
Director any information relevant to the action that the enter-
prise considers appropriate for consideration by the Director 
in determining whether to take such action. The Director may, 
at the discretion of the Director, hold an informal administra-
tive hearing to receive and discuss such information and the 
proposed determination. 
(2) EXTENDED PERIOD.—^The Director may extend the period 
under paragraph (1) for good cause for not more than 30 addi-
tional days. 
(3) SHORTENED PERIOD.—The Director may shorten the 
period under paragraph (1) if the Director determines that 
the condition of the enterprise so requires or the enterprise 
consents. 
(4) FAILURE TO RESPOND.—The failure of an enterprise 
to provide information during the response period under this 
subsection (as extended or shortened) shall waive any right 
of the enterprise to comment on the proposed action of the 
Director. 
(d) CONSIDERATION OP INFORMATION AND DETERMINATION.— 
After the expiration of the response period under subsection (c) 
or upon receipt of information provided during such period by 
the enterprise, whichever occurs earlier, the Director shall deter-
mine whether to take the action proposed, taking into consideration 
any relevant information submitted by the enterprise during the 
response period. The Dire<;tor shall provide written notice of a 
determination to take action and the reasons for such determination 
to the enterprise, the Committee on Banking, Finance and Urban 
AfTairs of the House of Representatives, and the Committee on 
Bcmking, Housing, and Urban Affairs of the Senate. Such notice 
shall respond to any information submitted during the response 
period. 
(e) EFFECJTIVE DATE OF ACTIONS.—An action referred to in 
subsection (b) shall take effect upon receipt by the enterprise of 
notice of the determination of the Director under subsection (d), 
unless otherwise provided in such notice. 
SEC. 1368. APPOINTMENT OF CONSERVATORS. 
12 USC 4619. 
(a) APPOINTMENT.— 
(1) DISCRETIONARY AUTHORITY.—The Director may, after 
providing notice under paragraph (3), a
p
p
K
D
i
n
t a conservator 
for an enterprise upon a determination in writing— 
(A) that alternative remedies available to the Director 
under this title are not satisfactory; and 
(B) that— 
(i) the enterprise is not likely to pay its obligations 
in the normal course of business; 
(ii) the enterprise has incurred or is reasonably 
likely to incui* losses that would deplete substantially 
all of its core capital and it is unlikely that the enter-
prise will replenish its core capital within a reasonable 
period; 
(iii) the enterprise has concealed or is concealing 
books, papers, records, or assets of the enterprise that 
are material to the discharge of the Directors respon-
sibilities under this subtitle, or has refused or is 
refusing to submit such books, papers, records, or 
106 STAT. 3982 
PUBLIC LAW 102-550—OCT. 28, 1992 
information regarding the affairs of the enterprise for 
inspection to the Director upon request; or 
(iv) the enterprise has willAilly violated, or is will-
fully violating, a final cease-ana-desist order under 
section 1371. 
(2) CONSENT OF ENTERPRISE.—^Notwithstanding paragraph 
(1), the Director may appoint a conservator for an enterprise 
if the enterprise, by an afiirmative vote of a m^'ority of the 
members of its board of directors or by an afi&nnative vote 
of a majority of its shareholders, consents to such appointment. 
(3) NOTICE.—^Upon making a determination imder para-
graph (1) of this subsection or under section 1366 or 1367 
to appoint a conservator for an enterprise, or upon consent 
of the enterprise under paragraph (2) to such an appointment, 
the Director shall provide written notice to the enterprise, 
the Committee on Banking, Finance and Urban Affairs of the 
House of Representetives, and the Committee on Banking, 
Housing, and Urban Affairs of the Senate— 
(A) that a conservator will be appointed for the 
enterprise; 
(B) stating the reasons for the appointment of the 
conservator; and 
(C) identifying the person or governmental agency that 
the Director intends to appoint as conservator. 
(4) QUAUFICATIONS.—The conservator shall be— 
(A) the Director or any other governmental agency; 
or 
(B) any person that— 
(i) has no claim against, or financial interest in, 
the enterprise or other basis for a conflict of interest; 
and 
(ii) has the financial and management expertise 
necessaiy to direct the operations and affairs of the 
enterprise, 
(b) JUDICIAL REVIEW.— 
(1) TIMING AND JURISDICTION.—Except as provided in para-
graph (2), an enterprise for which a conservator is appointed 
(pursuant to this section or section 1366 or 1367) may bring 
an action in the United Stotes District Court for the District 
of Columbia for an order requiring the Director to terminate 
the appointment of the conservator. The court, upon the merits, 
shall dismiss such action or shall direct the Director to termi-
nate the appointment of the conservator. Such an action may 
be commenced only during the 20-day period beginning upon 
the appointment of the conservator. 
(2) CONSENSUAL APPOINTMENTS.—Appointment of a con-
servator pursuant to consent of the enterprise under subsection 
(aX2) shall not be subject to judicial review under this sub-
section. 
(3) STANDARD OF REVIEW.—A decision of the Director to 
appoint a conservator may be set aside under this subsection 
only if the court finds that the decision was arbitrary, capri-
cious, an abuse of discretion, or otherwise not in accordance 
witii applicable laws. 
(4) LIMITATION ON JURISDICTION.—Except as otherwise pro-
vided in this subsection, no court may take any action regarding 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3983 
the removal of a conservator or otherwise restrain or affect 
the exercise of powers or 
ftuictions 
of a conservator. 
(c) REPLACEMENT.—^The Director may, without notice or hear-
ing, replace a conservator with another conservator. Such replace-
ment shall not affect the right of the enterprise under subsection 
(b) to obtain judicial review of the decision of the Director to 
appoint a conservator. 
(d) EXAMINATIONS.—^The Director may examine and supervise 
any enterprise in conservatorship during the period in which the 
enterprise continues to operate as a going concern. 
(e) TERMINATION.— 
(1) DISCRETIONARY.—^At any time the Director determines 
that termination of a conservatorship pursuant to an appoint-
ment under subsection (a) is in the pubUc interest and may 
safely be accomplished, the Director may terminate the 
conservatorship and permit the enterprise to resume the trans-
action of its business subject to such terms, conditions, and 
limitations as the Director may prescribe. 
(2) 
MANDATORY.—The 
Director 
shall 
terminate 
a 
conservatorship initiated pursuant to section 1366 or 1367 upon 
a determination by the Director that the enterprise has main-
tained an amount of core capital that is equal to or exceeds 
the minimum capital level for the enterprise established imder 
section 1362, and may by written order prescribe such terms, 
conditions, and limitations on the enterprise as the Director 
considers appropriate. 
(3) TERMS.—Any terms, conditions, and Umitations imposed 
by the Director upon termination of a conservatorship shall 
be enforceable and reviewable under the provisions of sections 
1374 and 1375, to the same extent as any cease-and-desist 
order issued pursuant to subtitle C. 
SEC. 1388A. POWERS OF CONSERVATORa 
12 USC 4620. 
(a) GENERAL POWERS.—^A conservator shall have all the powers 
of the shareholders, directors, and officers of the enterprise under 
conservatorship and may operate the enterprise in the name of 
the enterprise, imless the Director provides otherwise. 
(b) AbDmONAL POWER.—^A conservator may avoid any security 
interest taken by a creditor with the intent to hinder, delay, or 
defraud the enterprise or the creditors of the enterprise. 
(c) LIMITATIONS BY DIRECTOR.—^A conservator shall be subject 
to any rules, regulations, and orders issued from time to time 
by the Director and, except as otherwise specifically provided in 
such rules, regulations, or orders or in section 1369B, shall have 
the same rights and privileges and be subject to the same duties, 
restrictions, penalties, conditions, and Imiitations applicable to 
directors, officers, or employees of the enterprise. 
(d) ENFORCEMENT O
F CONTRACTS.— 
(1) IN GENERAL.—^A conservator may enforce any contract 
described in paragpraph (2), notwithstanding any provision of 
the contract providing for the termination, default, acceleration, 
or other exercise of rights upon, or solely by reason of, the 
insolvency of the enterprise or the appointment of a conservator. 
(2) ENFORCEABLE CONTRACTS.—Any contract that is within 
a class of contracts shall be enforceable under paragraph (1) 
if the Director— 
106 STAT. 3984 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) determines that the continued enforceability of such 
class of contracts is necessary to achieve the purpose of 
the conservatorship; and 
(B) specifically provides for the enforceability of such 
class of contracts in a regulation or order, issued for the 
purpose of this subsection, which describes such class. 
(3) APPLICABILITY.—^This subsection and any regulation or 
order issued under this subsection shall apply only to contracts 
entered into, modified, extended, or renewed after the effective 
date of the regulation or order. 
(e) STAYS.— 
(1) IN GENERAL.—^Not later than 45 days after appointment 
pursuant to section 1366, 1367, or 1369, or 45 days afi«r 
receipt of actual notice of an action or proceeding that is pend-
ing at the time of appointment, a conservator may request 
that any judicial action or proceeding to which the conservator 
or the enterprise is or may become a party be stayed for 
a period not exceeding 45 days after the request. Upon petition, 
the court shall grant such stay as to all parties. 
(2) FEDERAL AGENCY AS CONSERVATOR.—In any case in 
which the conservator appointed for an enterprise is a Federal 
agency or an officer or employee of the Federal Government, 
the conservator may make a request for a stay under paragraph 
(1) only with the prior consent of the Attorney General and 
subject to the direction and control of the Attorney General. 
(f) PAYMENT OF CREDITORS.—^The Director may require a con-
servator to set aside and make available for payment to creditors 
any amounts that the Director determines may safely be used 
for such purpose. All creditors who are similarly situated shall 
be treated in a similar manner. 
(g) COMPENSATION OF CONSERVATOR AND EMPLOYEES.—A con-
servator and professional employees (other than Federal employees) 
appointed to represent or assist the conservator may be com-
pensated for activities conducted as conservator. Compensation may 
not be provided in amounts greater than the compensation paid 
to employees of the Federal Government for similar services, except 
that the Director may provide for compensation at higher rates 
(but not in excess of rates prevailing in the private sector), if 
the Director determines that compensation at higher rates is nec-
essary in order to recruit and retain competent personnel. 
(h) EXPENSES.—^All expenses of a conservatorship pursuant to 
this section (including compensation pursuant to subsection (f)) 
shall be paid by the enterprise under conservatorship and shall 
be secured by a lien on the enterprise, which shall have priority 
over any other lien. 
(i) CONFLICTS OF INTEREST AND FINANCIAL DISCLOSURE.—A 
conservator shall be subject to any laws and regulations relating 
to conflicts of interest and financial disclosure that apply to employ-
;ees of the Office. 
12 use 4621. 
SEC. 1369B. LIABILITY PROTECTION FOR CONSERVATORS. 
(a) FEDERAL AGENCIES AND EMPLOYEES.—In any case in which 
a conservator appointed under this subtitle is a Federal agency 
or an officer or employee of the Federal Government, the provisions 
of chapters 161 and 171 of title 28, United States Code, shall 
apply with respect to the liability of the conservator for acts or 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3985 
omissions performed pursuant to and in the course of the duties 
and responsibilities of the conservatorship. 
(b) OTHER CONSERVATORS.—^In anv case where the conservator 
is not a conservator described in subsection (a), the conservator 
shall not be personally liable for damages in tort or otherwise 
for acts or omissions performed pursuant to and in the course 
of the duties and responsibilities of the conservatorship, unless 
such acts or omissions constitute g^ross negligence or any form 
of intentional tortious conduct or criminal conduct. 
(c) INDEMNIFICATION.—The Director, with the approval of the 
Attorney Greneral, may indemnify the conservator on such terms 
as the Director considers appropriate. 
SEC. 1368C. CAPITAL RESTORATION PLANS. 
12 USC 4622. 
(a) CONTENTS.—^Each capital restoration plan submitted under 
this subtitle shall set forth a feasible plan tor restoring the core 
capital of the enterprise subject to the plan to an amount not 
less than the minimum capital level for the enterprise and for 
restoring the total capital oi the enterprise to an amount not less 
than the risk-based capital level for the enterprise. Each capital 
restoration plan shall— 
(1) specify the level of capital the enterprise will achieve 
and maintain; 
(2) describe the actions that the enterprise will take to 
become classified as adequately capitalized; 
(3) establish a schedule for completing the actions set forth 
in the plan; 
(4) specify the types and levels of activities (including exist-
ing and new programs) in which the enterprise will engage 
during the term of the plan; and 
(5) describe the actions that the enterprise will take to 
comply with any mandatory and discretionary requirements 
imposed under this subtitle. 
(b) DEADLINES FOR SUBMISSION.—The Director shall, by regula- Regulations. 
tion, establish a deadline for submission of a capital restoration 
plan, which may not be more than 45 days after the enterprise 
IS notified in writing that a plan is required. The regulations 
shall provide that the Director may extend the deadline to the 
extent that the Director determines it necessary. Any extension 
of the deadline shall be in writing and for a time certain. 
(c) APPROVAL.—^The Director shall review each capital restora-
tion plan submitted under this section and, not later than 30 
days after submission of the plan, approve or disapprove the plan. 
The Director may extend the period for approval or disapproval 
for any plan for a single additional 30-day period if the Director 
determines it necessary. The Director shall provide written notice 
to any enterprise submitting a plan of the approval or disapproval 
of the plan (which shall include the reasons for any disapproval 
of the plan) and of any extension of the period for approval or 
disapproval. 
(d) RESUBMISSION.—^If the Director disapproves the initial cap-
ital restoration plan submitted by the enterprise, the enterprise 
shall submit an amended plan acceptable to the Director within 
30 days or such longer period that the Director determines is 
in the public interest. 
SEC. 1369D. JUDICIAL REVIEW OF DIRECTOR ACTION. 
12 USC 4623. 
(a) JURISDICTION.— 
< ^- 
A - - * ^ . ^ 
106 STAT. 3986 
PUBLIC LAW 102-550—OCT. 28, 1992 
(1) FILING OF PETITION.—^An enteiprise that is not classified 
as critically undercapitalized and is the subject of a classifica-
tion under section 1364 or a discretionary supervisory action 
taken under this subtitle by the Director (other than action 
to appoint a conservator under section 1366 or 1367 or action 
under section 1369) may obtain review of the classification 
or action by filing, within 10 days after receiving written notice 
of the Director's action, a written petition requesting that the 
classification or action of the Director be modified, terminated, 
or set aside. 
(2) PLACE FOR FILING.—^A petition filed pursuant to this 
subsection shall be filed in the United States Court of Appeals 
for the District of Columbia Circuit. 
(b) SCOPE OF REVIEW.—The Court may modify, terminate, or 
set aside £ui action taken by the Director and reviewed by the 
Court pursuant to this section only if the court finds, on the record 
on which the Director acted, that the action of the Director was 
arbitrary, capricious, an abuse of discretion, or otherwise not in 
accordance with applicable laws. 
(c) UNAVAILABILITY OF STAY.—The commencement of proceed-
ings for judicial review pursuant to this section shall not operate 
as a stay of any action taken by the Director. Pending judicial 
review of the action, the court shall not have jurisdiction to stay, 
enjoin, or otherwise delay any supervisory action taken by the 
Director with respect to an enterprise that is classified as signifi-
cantly or critically imdercapitalized or any action of the Director 
that results in the classification of an enterprise as significantly 
or critically undercapitalized. 
(d) LIMITATION ON JURISDICTION.—Except as provided in this 
section, no court shall have jurisdiction to affect, by ii\junction 
or otherwise, the issuance or effectiveness of any classification 
or action of the Director under this subtitle (other than appointment 
of a conservator under section 1366 or 1367 or action under section 
1369) or to review, modify, suspend, terminate, or set aside such 
classification or action. 
Subtitle C—^Enforcement Provisions 
12 use 4631. 
SEC. 1371. CEASE-AND-DESIST PROCEEDINGS. 
(a) GROUNDS FOR ISSUANCE AGAINST ADEQUATELY CAPITAUZED 
ENTERPRISES.—The Director may issue and serve a notice of charges 
imder this section upon an enterprise that is classified (for purposes 
of subtitle B) as adequately capitalized or upon any executive officer 
or director of such an enterprise, if in the determination of the 
Director, the enterprise, executive officer, or director is engaging 
or has engaged, or the Director has reasonable cause to believe 
that the enterprise, executive officer, or director is about to engage, 
in— 
(1) any conduct that threatens to cause a significant deple-
tion of the core capital of the enterprise; 
(2) any conduct or violation that may result in the issuance 
of an order described in subsection (dXD; or 
(3) anv conduct that violates— 
(A) any provision of this title, the Federal National 
Mortgage Association Charter Act, the Federal Home Loan 
Mortgage Corporation Act, or any order, rule, or regulation 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3987 
under any such title or Act, except that the Director may 
not enforce compliance with any housing eoal established 
under subpart B of part 2 of subtitle A of this title, with 
section 1336 or 1337 of this title, or with subsection (m) 
or (n) of section 309 of the Federal National Mortgage 
Association Charter Act or subsection (e) or (f) of section 
307 of the Federal Home Loan Mortgage Corporation Act; 
or 
(B) any written agreement entered into by the enter-
prise with the Director. 
(b) 
GROUNDS FOR ISSUANCE AGAINST UNDERCAPITALIZED, 
SIGNIFICANTLY 
UNDERCAPITAUZED, 
AND 
CRITICALLY 
UNDERCAPITALIZED ENTERPRISES.—The Director may issue and 
serve a notice of charges under this section upon an enterprise 
classified (for purposes of subtitle B) as undercapitalized, signifi-
cantly undercapitalized, or critically undercapitalized, or any execu-
tive officer or director of any such enterprise, if in the determination 
of the Director the enterprise, executive officer, or director is engag-
ing or has engaged, or the Director has reasonable cause to believe 
that the enterprise, executive officer, or director is about to engage, 
in— 
(1) any conduct likely to result in a material depletion 
of the core capital of the enterprise, or 
(2) any conduct or violation described in paragraph (2) 
or (3) of subsection (a), 
except that the Director may not enforce compliance with any 
housing goal established under subpart B of part 2 of subtitle 
A of this title, with section 1336 or 1337 of this title, or with 
subsection (m) or (n) of section 309 of the Federal National Mortgage 
Association Charter Act or subsection (e) or (D of section 307 of 
the Federal Home Loan Mortgage Corporation Act. 
(c) PROCEDURE.— 
(1) NOTICE OF CHARGES.—^Each notice of charges under 
this section shall contain a statement of the facts constituting 
the alleged conduct or violation and shall fix a time and place 
at which a hearing will be held to determine on the record 
whether an order to cease and desist from such conduct or 
violation should issue. 
(2) ISSUANCE OF ORDER.—If the Director finds on the record 
made at such hearing that any conduct or violation specified 
in the notice of charges has been established (or the enterprise 
consents pursuant to section 1373(aX4)), the Director may issue 
and serve upon the enterprise, executive officer, or curector 
an order requiring such party to cease and desist from any 
such conduct or violation and to take affirmative action to 
correct or remedy the (X>ndition8 resulting from any such con-
duct or violation. 
(d) AFFIRMATIVE ACTION TO CORRECT CONDITIONS RESULTING 
FROM VIOLATIONS OR ACTIVITIES.—The authority under this section 
and section 1372 to issue any order requiring an enterprise, execu-
tive officer, or director to take affirmative action to correct or 
remedy any condition resulting from anv conduct or violation with 
respect to which such order is issued includes the authority— 
(1) to require an executive officer or a director to make 
restitution to, or provide reimbursement, indemnification, or 
guarantee against loss to the enterprise to the extent that 
such person— 
106 STAT. 3988 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) was unjustly enriched in connection with such con-
duct or violation; or 
(B) engaged in conduct or a violation that would subject 
such person to a civil penalty piu'suant to section 
1376(bX3); 
(2) to require an enterprise to seek restitution, or to obtain 
reimbursement, indemnification, or guarantee against loss; 
(3) to restrict the growth of the enterprise; 
(4) to require the enterprise to dispose of any asset 
involved; 
(5) to require the enterprise to rescind agreements or 
contracts; 
(6) to require the enterprise to employ qualified officers 
or employees (who may be subject to approval by the Director 
at the direction of the Director); and 
(7) to require the enterprise to take such other action 
as the Director determines appropriate. 
(e) AUTHORITY TO LIMIT ACTIVITIES.—The authority to issue 
an order under this section or section 1372 includes the authority 
to place limitations on the activities or functions of the enterprise 
or any executive officer or director of the enterprise. 
(f) EFFECTIVE DATE.—An order imder this section shall become 
effective upon the expiration of the 30-day period beginning on 
the service of the order upon the enterprise, executive officer, or 
director concerned (except in the case of an order issued upon 
consent, which shall become effective at the time specified therein), 
and shall remain effective and enforceable as provided in the order, 
except to the extent that the order is stayed, modified, terminated, 
or set aside by action of the Director or otherwise, as provided 
in this subtitle. 
12 use 4632. 
SEC. 1372. TEMPORARY CEASE-AND-DESIST ORDERS. 
(a) GROUNDS FOR ISSUANCE AND SCOPE.—Whenever the Director 
determines that any conduct or violation, or threatened conduct 
or violation, specified in the notice of charges served upon the 
enterprise, executive officer, or director pursuant to section 1371 
(a) or (b), or the continuation thereof, is likely— 
(1) to cause insolvency, 
(2) to cause a signincant depletion of the core capital of 
the enterprise, or 
(3) otherwise to cause irreparable harm to the enterprise, 
prior to the completion of the proceedings conducted pursuant to 
section 1371(c), the Director may issue a temporary order requiring 
the enterprise, executive officer, or director to cease and desist 
from any such conduct or violation and to teke affirmative action 
to prevent or remedy such insolvency, depletion, or harm pending 
completion of such proceedings. Such order may include any require-
ment authorized under section 1371(d). 
(b) EFFECTIVE DATE.—An order issued pursu£int to subsection 
(a) shall become effective upon service upon the enterprise, execu-
tive officer, or director and, unless set aside, limited, or suspended 
by a court in proceedings pursuant to subsection (d), shall remain 
in effect and enforceable pending the completion of the proceedings 
pursuant to such notice and shall remain effective imtil the Director 
dismisses the charges specified in the notice or imtil superseded 
by a cease-and-desist order issued pursuant to section 1371. 
(c) INCOMPLETE OR INACCURATE RECORDS.— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3989 
(1) TEMPORARY ORDER.—If a notice of charges served under 
section 1371 (a) or (b) specifies on the basis of particular facts 
and circumstances that the books and records of the enterprise 
served are so incomplete or inaccurate that the Director is 
unable, through the normal supervisory process, to determine 
the financial condition of the enterprise or the details or the 
purpose of any transaction or transactions that may have a 
material effect on the financial condition of that enterprise, 
the Director may issue a temporary order requiring— 
(A) the cessation of any activity or practice which gave 
rise, whether in whole or in part, to the incomplete or 
inaccurate state of the books or records; or 
(B) affirmative action to restore the books or records 
to a complete and accurate state. 
(2) EFFECTIVE PERIOD.—^Any temporary order issued under 
paragraph (1)— 
(A) shall become effective upon service; and 
(B) unless set aside, limited, or suspended by a court 
in proceedings pursuant to subsection (d), shall remain 
in effect and enforceable until the earlier of— 
(i) the completion of the proceeding initiated under 
section 1371 in connection with the notice of charges; 
or 
(ii) the dat€! the Director determines, by examina-
tion or otherwise, that the books and records of the 
enterprise are accurate and reflect the financial condi-
tion of the enterprise. 
(d) JUDICIAL REVIEW.—^^ enterprise, executive officer, or direc-
tor that has been served with a temporary order pursuant to this 
section may apply to the United States District Court for the 
District of Columbia within 10 days after such service for an injunc-
tion setting aside, limiting, or suspending the enforcement, oper-
ation, or effectiveness of the order pending the completion of the 
administrative proceedings pursuant to the notice of cnarges served 
upon the enterprise, executive officer, or director under section 
1371 (a) or (b). Such court shall have jurisdiction to issue such 
injunction. 
(e) ENFORCEMENT BY ATTORNEY GENERAL.—In the case of viola-
tion or threatened violation of, or failure to obey, a temporary 
order issued pursuant to this section, the Director may request 
the Attorney General of the United States to bring an action in 
the United States District Court for the District of Columbia for 
an injunction to enforce such order or may, under the direction 
and control of the Attorney General, bring such an action. If the 
court finds any such violation, threatened violation, or failure to 
obey, the court shall issue such injunction. 
SEC. 1373. HEARINGS. 
12 USC 4633. 
(a) REQUIREMENTS.— 
(1) VENUE AND RECORD.—^Any hearing imder section 1371 
or 1376(c) shall be held on the record and in the District 
of Columbia. 
(2) TIMING.—^Any such hearing shall be fixed for a date 
not earlier than 30 days nor later than 60 days after service 
of the notice of charges under section 1371 or determination 
to impose a penalty imder section 1376, unless an earlier or 
106 STAT. 3990 
PUBLIC LAW 102-550—OCT. 28, 1992 
a later date is set by the hearing officer at the request of 
the partyserved. 
(3) F
R
O
C
E
D
U
R
E
.
—
^
A
n
y such hearing shall be conducted in 
accordance with chapter 5 of title 5, United States Code. 
(4) FAILURE TO APPEAR.—If the piuiy served fails to appear 
at the hearing through a duly authorized representative, such 
party shall be deemed to have consented to the issuance of 
the cease-and-desist order or the imposition of the penalty 
for which the hearing is held. 
(b) ISSUANCE OF ORDER.— 
(1) IN GENERAL.—After any such hearing, and within 90 
days after the parties have been notified that the case has 
been submitted to the Director for final decision, the Director 
shall render the decision (which shall include findings of fact 
upon which the decision is predicated) and shall issue and 
serve upon each party to the proceeding an order or orders 
consistent with the provisions of 
this subtiue. 
(2) MODIFICATION.—Judicial review of any such order shall 
be exclusively as provided in section 1374. Imless such a peti-
tion for review is timely filed as provided in section 1374, 
and thereafter until the record in the proceeding has been 
filed as so provided, the Director may at any time, modify, 
terminate, or set aside an^ such order, upon such notice and 
in such manner as the Director considers proper. Upon such 
filing of the record, the Director may modify, termmate, or 
set aside any such order with permission of the court. 
12 use 4634. 
SEC. 1874. JUDICIAL REVIEW. 
(a) COMMENCEMENT.—Any party to a proceeding under section 
1371 or 1376 ma^ obtain review of any final order issued under 
such section hv filing in the United Stetes Court of Appeals for 
the District of Columbia Circuit, within 30 dajrs after the date 
of service of such order, a written petition praying that the order 
of the Director be mo<fified, terminated, or set aside. The clerk 
of the court shall transmit a copy of the petition to the Director. 
(b) FILING OF RECORD.—^Upon receiving a copy of a petition, 
the Director shall file in the court the record in the proceeding, 
as provided in section 2112 of 
title 28, United Stetes Code. 
(c) JURISDICTION.—^Upon the filing of a petition, such court 
shall have jurisdiction, which upon the filing of the record by 
the Director shall (except as provided in the last sentence of section 
1373(bX2)) be exclusive, to affirm, modify, terminate, or set aside, 
in whole or in part, the order of the Director. 
(d) REVIEW.—^Review of such proceedings shall be governed 
by chapter 7 of 
title 5, United Stetes Code. 
(e) ORDER TO PAY PENALTY.—Such court shall have the author-
ity in any such review to order payment of any penalty imposed 
by the Director under this subtitle. 
(f) No AUTOMATIC STAY.—^The commencement of proceedings 
for judicial review under this section shall not, unless specifically 
ordered by the court, operate as a stoy of any order issued by 
the Director. 
12 use 4635. 
SEC. 1375. ENFORCEMENT AND JURISDICTION. 
(a) ENFORCEMENT.—^The Director may request the Attorney 
General of the United Stetes to bring an action in the United 
States District Court for the District of Columbia for the enforce-
ment of any efiective notice or order issued under this subtitle 
PUBLIC LAW 102-550—OCT. 28,1992 
106 STAT. 3991 
or subtitle B or may, under the direction and control of the Attorney 
General, bring suoi an aiction. Such court Bhall have jurisdiction 
and power to order and require compliance herewith. 
(b) LIMITATION ON JURISDICTION.—Except as otherwise provided 
in this subtitle and sections 1369 and 1369D, no court shall have 
jurisdiction to affect, by injunction or otherwise, the issuance or 
enforcement of aiw notice or order under section 1371, 1372, or 
1376, or subtitle B, or to review, modify, suspend, terminate, or 
set aside any such notice or order. 
SEC. 187«. CIVIL MONEY PENALTIE& 
12 USC 4636. 
(a) IN GENERAL.—^The Director may impose a civil money pen-
alty in accordance with this section on anv enterprise, or any 
executive officer or director of any enterprise, that— 
(1) violates any provision of this title, the Federal National 
Mortgage Association Chuler Act, the Federal Home Loan 
Mortgage Corporation Act, or any order, rule, or regulation 
under any such title or Act, except that the Director may 
not enforce compliance with any housing goal established under 
subpart B of part 2 of subtiue A of this title, with section 
1336 or 1337 of tins title, or with subsection (m) or (n) of 
section 309 of the Federal National Mortgage Association Char-
ter Act or subsection (e) or (f) of section 307 of the Federal 
Home Loan Mortgage Corporation Act; 
(2) violates any final or temporary order issued pursuant 
to section 1365,1366, 1371, or 1372; 
(3) violates any written agreement between the enterprise 
and the Director; or 
(4) engages in any conduct that causes or is likely to 
cause a loss to the enterprise. 
(b) AMOUNT OF PENALTY.— 
(1) FIRST TIER.—^The Director ma^ impose a penalty on 
an enterprise for any violation described in paragraphs (1) 
through (3) of subsection (a). The amount of a penalty imder 
this paragrai^h shall not exceed $5,000 for each day that a 
violation continues. 
(2) SECOND TIER.—^The Director may impose a penalty on 
an executive officer or director in an amount not to exceed 
$10,000, or on an enterprise in an amount not to exceed 
$25,000, for each da^ that a violation or conduct described 
in subsection (a) contmues, if the Director finds that the viola-
tion or conduct— 
(A) is part of a pattern of misconduct; or 
(B) involved recklessness and caused or would be likely 
to cause a material loss to the enterprise. 
(3) THIRD TIER.—^The Director may impose a penalty on 
an executive officer or director in an amount not to exceed 
$100,000, or on a
m enterprise in an amount not to exceed 
$1,000,000, for each day that a violation or conduct described 
in subsection (a) continues, if the Director finds that the viola-
tion or conduct was knowing and caused or would be likely 
to cause a substantial loss to the enterprise. 
(c) 
PROCEDURES.— 
(1) ESTABLISHMENT.—The Director shall establish stand-
ards and procedures governing the imposition of dvil money 
penalties under subsections (a) and (b). Such standards and 
procedures— 
59-194 O—93 
12 : QL 3 (Pt. 5) 
106 STAT. 3992 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) shfdl provide for the Director to notify the enter-
prise in writing of the Director's determination to impose 
the penalty, which shall be made on the record; 
(B) shall provide for the imposition of a penalty only 
after the enterprise, executive officer, or director has been 
given an opportunity for a hearing on the record pursuant 
to section 1373; and 
(C) may provide for review by the Director of any 
determination or order, or interlocutory ruling, arising from 
a hearing. 
(2) FAcrroRS IN DETERMINING AMOUNT OF PENALTY.—In 
determining the amount of a penalty under this section, the 
Director shall give consideration to such factors as the gravity 
of the violation, any history of prior violations, the effect of 
the penalty on the safety and soundness of the enterprise, 
any ii^jury to the public, any benefits received, and deterrence 
of future violations, and any other factors the Director may 
determine by regulation to be appropriate. 
(3) REVIEW OF IMPOSITION OF PENALTY.—The order of the 
Director imposing a penalty under this section shall not be 
subject to review, except as provided in section 1374. 
(d) ACTION To COLLECT PENALTY.—If an enterprise, executive 
officer, or director fails to comply with an order of the Director 
imposing a civil money penalty under this section, after the order 
is no longer subject to review as provided under subsection (cXl) 
and section 1374, the Director may request the Attorney General 
of the United States to bring an action in the United States District 
Court for the District of Columbia to obtain a monetary judgment 
against the enterprise, executive officer, or director and such other 
relief as may be available, or may, under the direction and control 
of the Attorney General, bring such an action. The monetary judg-
ment may, in the discretion of the court, include any attorneys 
fees and other expenses incurred by the United States in connection 
with the action. In an action under this subsection, the validity 
and appropriateness of the order of the Director imposing the pen-
alty shall not be subject to review. 
(e) SETTLEMENT BY DIRECTOR.—^The Director may compromise, 
modify, or remit any civil money penalty which may be, or hcus 
been, imposed under this section. 
(0 AVAILABILITY OF OTHER REMEDIES.—Any civil money penalty 
under this section shall be in addition to any other available civil 
remedy and may be imposed whether or not the Director imposes 
other administrative sanctions. 
(g) PROHIBITION OF REIMBURSEMENT OR INDEMNIFICATION.— 
An enterprise may not reimburse or indemnify any individual for 
any penalty imposed under subsection (bX3). 
(h) DEPOSIT OF PENALTIES.—The Director shall deposit any 
civil money penalties collected under this section into the general 
fund of the Treasury. 
(i) APPLICABILITY.—^A ^nalty under this section may be 
imposed only for conduct or violations under subsection (a) occurring 
after the date of tiie enactment of this Act. 
12 use 4637. 
SEC. 1377. NOTICE AFTER SEPARATION FROM SERVICE. 
The resignation, termination of employment or participation, 
or separation of a director or executive officer of an enterprise 
shall not affect the jurisdiction and authority of the Director to 
PUBLIC LAW 102-550—OCT. 28,1992 
106 STAT. 3993 
issue any notice and proceed under this subtitle against any such 
director or executive officer, if such notice is served before the 
end of the 2-year periocl beginning on the date such director or 
executive officer ceases to be associated with the enterprise. 
SEC. 1378. PBIVATE RIGHTS OF ACTION. 
12 USC 4638. 
This title and the amendments made by this title shall not 
create any private right of action on behalf of any person against 
an enterprise, or any director or executive officer of an enterprise, 
or impfidr any existing private right of action under other apphcable 
law. 
SEC. 1379. PUBUC DISCIX>SURE OF FINAL ORDERS AND AGREE- 
12 USC 4639. 
MENTS. 
(a) IN GENERAL.—^The Director shall make available to the 
public— 
(1) any written agreement or other written statement for 
which a violation may be redressed bv the Director or any 
modification to or termination thereof, unless the Director, 
in the Director's discretion, determines that public disclosure 
would be contrary to the public interest; 
(2) any order that is issued with respect to any administra-
tive enforcement proceeding initiated by the Director under 
this subtitle and that has become final in accordance with 
sections 1373 and 1374; and 
(3) any modification to or termination of any final order 
made public pursuant to this subsection. 
(b) HEARINGS.—^All hearings on the record with respect to any 
notice of charges issued bv the Director shall be open to Uie public, 
unless the Director, in the Director's discretion, determines that 
holding an open hearing would be contrary to the public interest. 
(c) DELAY OF PUBUC DISCLOSURE UNDER EXCEPTIONAL CIR-
CUMSTANCES.—If the Director makes a determination in writing 
that the public disclosure of any final order pursuant to subsection 
(a) would seriously threaten the financial health or security of 
the enterprise, the Director may delay the public disclosure of 
such order for a reasonable time. 
(d) DOCUMENTS FILED UNDER SEAL IN PUBUC ENFORCEMENT 
HEARINGS.—^The Director may file any document or part thereof 
under seal in any hearing commenced by the Director if the Director 
determines in writing mat disclosure thereof would be contrary 
to the public interest. 
(e) RETENTION OF DOCUMENTS.—The Director shall keep and Records. 
maintain a record, for not less than 6 years, of all documents 
described in subsection (a) and all enforcement agreements and 
other supervisory actions and supporting documents issued with 
respect to or in connection with any enforcement proceeding initi-
ated by the Director under this subtitle or any other law. 
(0 DISCLOSURES TO CONGRESS.—This section mav not be con-
strued to authorize the withholding, or to prohibit the disclosure, 
of any information to the Congress or any committee or subcommit-
tee thereof. 
SEC. 1379A. NOTICE OF SERVICE. 
12 USC 4640. 
Any service required or authorized to be made by the Director 
under this subtitle may be made by registered mail, or in such 
other manner reasonably calculated to give actual notice as the 
Director may by regulation or otherwise provide. 
106 STAT. 3994 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 4641. 
SEC. 1S79B. SUBPOENA AUTHORITY. 
(a) IN GENERAL.—In the course of or in connection with anv 
administrative proceeding under this subtitle, the Director shall 
have the authority— 
(1) to administer oaths and affirmations; 
(2) to take and preserve testimony under oath; 
(3) to issue subpoenas and subpoenas duces tecum; and 
(4) to revoke, quash, or modify subpoenas and subpoenas 
duces tecum issued by the Director. 
(b) WITNESSES AND DOCUMENTS.—^The attendance of witnesses 
and the production of documents provided for in this section may 
be required from any place in any State at any designated place 
where such proceeding is being conducted. 
(c) ENFORCEMENT.—^The Director may request the Attorney 
General of the United States to bring an action in the United 
States district court for the judicial district in which such proceeding 
is being conducted, or where the witness resides or conducts busi-
ness, or the United States District Court for the District of Colum-
bia, for enforcement of any subpoena or subpoena duces tecum 
issued pursuant to this section or may, under the direction and 
control of the Attorney General, bring such an action. Such courts 
shall have jurisdiction and power to order and require compUance 
therewith. 
(d) FEES AND EXPENSES.—^Witnesses subpoenaed under this 
section shall be paid the same fees and mileage that are paid 
witnesses in the district courts of the United States. Any court 
having jurisdiction of any proceeding instituted under this section 
by an enterprise may allow to any such party such reasonable 
expenses and attorneys fees as the court deems just and proper. 
Such expenses and fees shall be paid by the enterprise or from 
its assets. 
Subtitle D—^Amendments to Charter Acts 
of Enterprises 
SEC. 1381. AMENDMENTS 
TO 
FEDERAL 
NATIONAL MORTGAGE 
ASSOCLiTION CHARTER ACT. 
(a) PURPOSES.—Section 301 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1716) is amended— 
(1) by striking 'iiome" each place it appears and inserting 
'^sidential"; 
(2) in paragraph (3)— 
(A) by striking the parentheses and all the matter 
contained therein and inserting the following: ''(including 
activities relating to mor^ages on housing for low- ana 
moderate-income families involving a reasonable economic 
return that may be less than the return earned on other 
activities)"; and 
(B) by striking "and" at the end; 
(3) by redesignating paragraph (4) as paragraph (5); 
(4) by insertmg after paragraph (3) the foflowing new para-
graph: 
"(4) promote access to mortgage credit throughout the 
Nation (including central cities, rural areas, and underserved 
areas) by increasmg the Uquidity of mortgage investments and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3995 
improving the distribution of investment capital available for 
residential mortgage financing; and". 
(b) HIGH COST AMJAS.—The last sentence of section 302(bX2) 
of the Federal National Mortgage Association Charter Act (12 U.S.C. 
1717(bX2)) is amended by striking "and Hawaii" and inserting 
"Hawaii, and the Virgin Islands". 
(c) SECRETARY'S APPROVAL AUTHORITY.—Section 302(b) of the 
Federal National Mortgage Association Charter Act (12 U.S.C. 
1717(bX2)) is amended— 
(1) in the first sentence of paragraph (2), by striking "and 
with the approval of the Secretary of Housing and Urban Devel-
opment,"; 
(2) in the first sentence of paragraph (3), Inr striking ", 
with the approval of the Secretary of Housing and Urban Devel-
opment,"; 
(3) in the first sentence of paragraph (4), bv striking ", 
with the approval of the Secretary of Housing and Urban Devel-
opment,"; and 
(4) by adding at the end the following new paragraph: 
"(6) The corporation may not implement any new program 
(as such term is defined in section 1303 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992) before 
obtaining the approval of the Secretary under section 1322 of such 
Act.". 
(d) CAPITALIZATION.—Section 303 of the Federal National Mort-
gage Association Charter Act (12 U.S.C. 1718) is amended— 
(1) in subsection (a), by inserting after the period at the 
end the following new sentence: The corporation may issue 
shares of common stock in return for appropriate payments 
into capital or capital and surplus."; 
(2) by striking subsections (b) and (c) and inserting the 
following new subsections: 
"(bXl) The corporation may impose charges or fees, which may 
be regarded as elements of pricing, with the objective that all 
costs and expenses of the operations of the corporation should 
be within its income derived from such operations and that such 
operations should be fully self-supporting. 
"(2) All earnings from the operations of the corporation shall 
annually be transferred to the general surplus account of the cor-
poration. At any time, funds of the general surplus account may, 
in the discretion of the board of directors, be transferred to reserves. 
"(cXD Except as provided in paragraph (2), the corporation 
may make such capital distributions (as such term is defined in 
section 1303 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992) as may be declared by the board 
of directors. All capital distributions shall be charged against the 
general surplus account of the corporation. 
"(2) The corporation may not make any capital distribution 
that would decrease the total capital of the corporation (as such 
term is defined in section 1303 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992) to an amount less 
than the risk-based capital level for the corporation established 
imder section 1361 of such Act or that would decrease the core 
capital of the corporation (as such term is defined in section 1303 
of such Act) to an amoiuit less than the minimum capital level 
for the corporation established under section 1362 of such Act, 
without prior written approval of the distribution by the Director 
106 STAT. 3996 
PUBLIC LAW 102-550—OCT. 28, 1992 
of the Office of Federal Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development."; 
(3) in subsection (0— 
(A) 1^ striking 'i» make payments" and all that follows 
through such capital contributions,"; and 
(B) by striking "additional shares of such stodc," and 
inserting "shares of common stock of the corporation"; and 
(4) bv redesignating subsection (f) (as so amended) as sub-
section (d). 
(e) RATIO O
F OBUGATIONS.—Section 304 of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1719) is amended— 
(1) in subsection (b), by striking the semicolon in the first 
sentence and all that follows through the end of the second 
sentence and inserting a period; and 
(2) in subsection (e), by striking the fourth sentence. 
(f) STATEMENT IN SECURITIES.—Section 304(d) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1719(d)) 
is amended by inserting after the period at the end the following 
new sentence: The corporation shall insert appropriate language 
in all of the securities issued under this subsection clearly indicating 
that such securities, together with the interest thereon, are not 
guaranteed by the United States and do not constitute a debt 
or obligation of the United States or any agency or instrumentality 
thereof other than the corporation.". 
(g) ASSESSMENTS FOR OFFICE OF FEDERAL HOUSING ENTERPRISE 
OVERSIGHT.—The first sentence of section 304(f) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1719(f)) is 
amended by inserting before the first comma the following: "of 
this Act and assessments pursuant to section 1316 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992". 
(h) BOARD O
F DIRECTORS.— 
(1) IN GENERAL.—The second sentence of section 308(b) 
of the Federal National Mortgage Association Charter Act (12 
U.S.C. 1723(b)) is amended— 
(A) by striking "and" after the second comma; and 
(B) by inserting before the period at the end the follow-
ing: ", and at least one person from an organization that 
hi^ represented consumer or community interests for not 
less than 2 years or one person who nas demonstrated 
a career commitment to the provision of housing for low-
income households". 
12USC1723 
(2) IMPLEMENTATION.—The amendments made by para-
"°^- 
nraph (1) shall apply to the first annual appointment by the 
President of members to the board of directors of the Federal 
National Mortgage Association that occurs aRer the date of 
the enactment of this Act. 
(i) REMOVAL AUTHORITY OF PRESIDENT.—The third sentence 
of section 308(b) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1723(b)) is amended by inserting "appointed" 
after "any such". 
(j) COMPENSATION.—Section 309(d) of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is 
amend^— 
(1) in the first sentence of paragraph (2) by striking "as 
it may determine" and inserting the foUowing: "as the board 
of directors determines reasonable and comparable with com-
pensation for employment in other similar businesses (including 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3997 
other publicly held financial institutions or mcgor financial 
services companies) involving similar duties and responsibil-
ities, except that a signiificant portion of potential compensation 
of all executive officers (as such term is defined in paragraph 
(3XC)) of the corporation shall be based on the performance 
of the corporation ; and 
(2) by adding at the end the following new paragraph: 
"(3XA) Not later than Jime 30, 1993, and annually thereafter. Reports. 
the corporation shall submit a report to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate on (i) the comparability of the compensation policies of 
the corporation with the compensation policies of other similar 
businesses, (ii) in the aggregate, the percentage of total cash com-
pensation and payments under employee benefit plans (which shall 
be defined in a manner consistent with the corporation's proxy 
statement for the annual meeting of shareholders for the preceding 
year) earned by executive officers of the corporation during the 
preceding year that was based on the corporation's performance, 
and (iii) the comparability of the corporation s financial performance 
with the performance of other similar businesses. The report shall 
include a copy of the corporation's proxy statement for the annual 
meeting of shareholders for the preceding year. 
''(B) Notwithstanding the first sentence of paragraph (2), after 
the date of the enactment of the Federal Housing Enterprises 
Financial Safety and Soimdness Act of 1992, the corporation may 
not enter into any agreement or contract to provide any payment 
of money or other thing of current or potential value in connection 
with the termination of employment of any executive officer of 
the corporation, unless such agreement or contract is approved 
in advance by the Director of the Office of Federal Housing Enter-
prise Oversight of the Department of Housing and Urban Develop-
ment. The Director may not approve any such agreement or contract 
imless the Director determines that the benefits provided imder 
the agreement or contract are comparable to benefits under such 
agreements for officers of other public and private entities involved 
in financial services and housing interests who have comparable 
duties and responsibilities,. For purposes of this subparagraph, any 
renegotiation, amendment, or change after such date of enactment 
to any such agreement or contract entered into on or before such 
date of enactment shall be considered entering into an agreement 
or contract. 
"(C) For purposes of this paragraph, the term 'executive officer' 
has the meaning given the term in section 1303 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992.". 
(k) GENERAL REGULATORY AUTHORITY.—Section 309 of the Fed-
eral National Mortgage Association Charter Act (12 U.S.C. 1723a) 
is amended by striking subsections (h) and (i). 
(1) GAO AUDITS.—Section 309<j) of the Federal National Mort-
gage Association Charter Act (12 U.S.C. 1723a(j)) is amended— 
(1) by inserting "(1)" after "(j)"; 
(2) by striking the first sentence and inserting the following 
new sentence: The programs, activities, receipts, expenditures, 
and financial transactions of the corporation shall be subject 
to audit by the Comptroller General or the United Stetes under 
such rules and regulations as may be prescribed by the 
Comptroller Greneral."; and 
106 STAT. 3998 
PUBLIC LAW 102-550—OCT. 28, 1992 
(3) by adding at the end the following new paragraph: 
"(2) To cany out this subsection, the representatives of the 
General Accounting Office shall have access, upon request to the 
corporation or any auditor for an audit of the corporation under 
subsection (1), to any books, accounts, financial records, reports, 
files, or other papers, things, or property belonging to or in use 
by the coiporation and used in any such audit and to any papers, 
records, files, and reports of the auditor used in such an audit.", 
(m) FINANCIAL REPORTS TO DIRECTOR.—Section 309 of the Fed-
eral National Mortgage Association Charter Act (12 U.S.C. 1723a) 
is amended by adding at the end ihe following new subsection: 
"(kXD The corporation shall submit to the Director of the 
Office of Federal Housing Enterprise Oversight of the Department 
of Housing and Urban Development annual and quarterly reports 
of the financial condition and operations of the corporation which 
shall be in such form, contain such information, and be submitted 
on such dates as the Director shall require. 
"(2) Each such annual report shall include— 
"(A) financial statements prepared in accordance with gen-
erally accepted accounting principles; 
"(B) any supplemental information or alternative presen-
tation that Uie Director may require; and 
"(C) an assessment (as of the end of the corporation's 
most recent fiscal year), signed by the chief executive officer 
and chief accounting or financial officer of the corporation, 
of— 
"(i) the effectiveness of the internal control structure 
and procedures of the corporation; and 
"(ii) the compliance of the corporation with designated 
safety and soundness laws. 
"(3) The corporation shall also submit to the Director any 
other reports required by the Director pursuant to section 1314 
of the Federal Housing Enterprises Financial Safety and Soundness 
, Act of 1992. 
"(4) Each report of financial condition shall contain a declara-
tion by the president, vice president, treasurer, or any other officer 
designated by the board of directors of the corporation to make 
such declaration, that the report is true and correct to the best 
of such officer's knowledge and belief.". 
(n) AUDITS OF FINANCIAL STATEMENTS.—Section 309 of 
the 
Federal National Mortgage Association Charter Act (12 U.S.C. 
1723a) is amended by adding after subsection (k) (as added by 
subsection (m) of this section) the following new subsection: 
"(1X1) The corporation shall have an annual independent audit 
made of its financial statements by an independent public account-
ant in accordance with generally accepted auditing standards. 
"(2) In conducting an audit under this subsection, the independ-
ent public accountant shall determine and report on whether the 
financial statements of the corporation (A) are presented fairly 
\ 
in accordance with generally accepted accounting principles, and 
(B) to the extent determined necessapr by the Director, comply 
with any disclosure requirements imposed under subsection 
(kX2XB).* 
(o) MORTGAGE DATA COLLECTION AND REPORTING REQUIRE-
MENTS.—Section 309 of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1723a) is amended by adding after sub-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 3999 
section (1) (as added by subsection (n) of this section) the following 
new subsection: 
''(mXl) The corporation shall collect, maintain, and provide 
to the Secretary, in a form determined by the Secretaiy, data 
relating to its mortgages on housing consisting of 1 to 4 dwelling 
imits. Such data shall mclude— 
"(A) the income, census tract location, race, and gender 
of mortgagors under such mortgages; 
"(B) the loan-to-value ratios of pvirchased mortgages at 
the time of origination; 
"(C) whemer a particular mortgage purchased is newly 
originated or seasoned; 
"(D) the number of units in the housing subject to the 
mortgage and whether the units are owner-occupied; and 
"(E) any other characteristics that the Secretary considers 
appropriate, to the extent practicable. 
"(2) The corporation shall collect, maintain, and provide to 
the Secretary, in a form determined by the Secretary, data relating 
to its mortgages on housing consisting of more than 4 dwelling 
units. Such data shall include— 
"(A) census tract location of the housing; 
"(B) income levels and characteristics of tenants of the 
housing (to the extent practicable); 
"(C) rent levels for units in the housing; 
"(D) mortgage characteristics (such as the niunber of units 
financed per mortgage and the amount of loans); 
**(£) mortgagor characteristics (such as nonprofit, for-profit, 
limited equity cooperatives); 
"(F) vise of funds (such as new construction, rehabilitation, 
refinancing); 
"(G) type of originating institution; and 
"(H) any other information that the Secretary considers 
appropriate, to the extent practicable. 
"(SKA) Except as pro>ddea in subparagraph (B), this subsection 
shall apply only to mortgages purchased by the corporation after 
December 31,1992. 
"(B) This subsection shall apply to any mortgage purchased 
bv the corporation after the date determined under subparagraph 
(A) if the mortgage was originated before such date, but only to 
the extent that the data referred in paragraph (1) or (2), as 
applicable, is available to the corporation. . 
(p) REPORT ON HOUSING ACTIVITIES.—Section 309 of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1723a) is 
amended by addmg after subsection (m) (as added by subsection 
(o) of this section) the following new subsection: 
"(nXD The corporation shall submit to the Committee on Bank-
ing, Finance and Urban Affairs of the House of Representatives, 
the Committee on Banliing, Housing, and Urban Affairs of the 
Senate, and the Secretaiy a report on its activities under subpart 
B of part 2 of subtitle A of the Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992. 
"(2) The report under this subsection shall— 
"(A) include, in aggregate form and by appropriate category, 
statements of the dollar volume and number of mortgages 
on owner-occupied and rental properties purchased which relate 
to each of the annual housing goals established under such 
subpart; 
106 STAT. 4000 
PUBLIC LAW 102-550—OCT. 28, 1992 
''(B) include, in aggregate form and by appropriate category, 
statements of the nuniber of families served by the corporation, 
the income class, race, and gender of homebuyers served, the 
income class of tenants of rental housing (to the extent such 
information is available), the characteristics of the census 
tracts, and the geographic distribution of the housing financed; 
"(C) include a statement of the extent to which the mort-
gages purchased by the corporation have been used in conjunc-
tion with public subsidy programs under Federal law; 
"(D) include statements of the proportion of mortgages 
on housing consisting of 1 to 4 dwelling units purchased by 
the corporation that have been made to first-time homebuyers, 
as soon as providing such data is practicable, and identifying 
any special programs (or revisions to conventional practices) 
facilitating homeownership opportimities for first-time home-
buyers; 
"(E) include, in aggregate form and by appropriate category, 
the data provided to the Secretary under subsection (m)(l)(B); 
"(F) compare the level of securitization versus portfolio 
activity; 
"(G) assess underwriting standards, business practices, 
repurchase requirements, pricing, fees, and procedures, that 
affect the purchase of mortgages for low- and moderate-income 
families, or that may yield disparate results based on the 
race of the borrower, including revisions thereto to promote 
affordable housing or fair lending; 
"(H) describe trends in both the primary and secondary 
multifamily housing mortgage markets, including a description 
of the progress made, and any factors impeding progress toward 
standardization and securitization of mortgage products for 
multifamily housing; 
"(I) describe trends in the delinquency and default rates 
of mortgages secured by housing for low- and moderate-income 
families that have been purchased by the corporation, including 
a comparison of such trends with delinquency and default 
information for mortgage products serving households with 
incomes above the median level that have been purchased 
by the corporation, and evaluate the impact of such trends 
on the standards and levels of risk of mortgage products serving 
low- and moderate-income families; 
"(J) describe in the aggregate the seller and servicer net-
work of the corporation, including the volume of mortgages 
purchased from minority-owned, women-owned, and commu-
nity-oriented lenders, and any efforts to facilitate relationships 
with such lenders; 
"(K) describe the activities undertaken by the corporation 
with nonprofit and for-profit organizations and with State and 
local governments and housing finance agencies, including how 
the corporation's activities support the objectives of comprehen-
sive housing affordability strategies under section 105 of the 
Cranston-Gonzalez National Affordable Housing Act; and 
"(L) include any other information that the Secretary 
considers appropriate. 
Public 
"(3)(A) The corporation shall make each report under this sub-
information. 
section available to the public at the principal and regional offices 
of the corporation. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4001 
"(B) Before making a report under this subsection available 
to the public, the corporation may exclude from the report informa-
tion that the Secretary has determined is proprietaiy information 
under section 1326 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992.". 
(q) HOUSING ADVISORY COUNCIL.—Section 309 of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1723a) is 
amended by adcQng after subsection (n) (as added by subsection 
(p) of this section) the following new subsection: 
"(oXl) Not later than 4 months after the date of enactment 
of the Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992, the corporation shall appoint an Affordable Housing 
Advisory Council to advise the corporation regarding possible meth-
ods for promoting affordable hoiising for low- and moderate-income 
families. 
"(2) The Affordable Housing Advisory Council shall consist of 
15 individuals, who shall include representatives of community-
based and other nonprofit and for-profit organizations and State 
and local government agencies actively engaged in the promotion, 
development, or financing of housing for low- and moderate-income 
families.". 
(r) STOCK ISSUANCES.—^The second sentence of section 311 of 
the Federal National Mortgage Association Charter Act (12 U.S.C. 
1723c) is amended by striking all that follows "Commission" and 
inserting a period. 
(s) TECHNICAL AMENDMENTS.— 
(1) Section 302(c) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1717(c)) is amended— 
(A) in paragraph (2)— 
(i) in the first sentence following subparagraph 
(F), by striking "him" and inserting "the trustor"; and 
(ii) in the last sentence, by striking "his" each 
place it appears and inserting "the trustor's"; and 
(B) in paragraph (3), by striking lie" each place it 
appears and inserting "the trustor". 
(2) Section 304(c) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1719(c)) is amended— 
(A) by striking "his" each place it appears and inserting 
"the Secretary's"; and 
(B) in the fourth sentence— 
(i) by striking "he" and inserting "the Secretary"; 
and 
(ii) by striking "him" and inserting "the Secretarjr". 
(3) Section 309 of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1723a) is amended— 
(A) in subsection (dX2)— 
(i) in the third sentence, by striking "his employ-
ment" each place it appears and inserting "the employ-
ment of such officer or employee"; and 
(ii) in the last sentence, by striking "his basic 
pay" and inserting "the basic pay of such person"; 
and 
(B) in subsection (e), by striking "he or it" and inserting 
"the individual, association, partnership, or corporation". 
106 STAT. 4002 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 1382. AMENDMENTS TO FEDERAL HOME LOAN MORTGAGE COR-
PORATION ACT. 
(a) PURPOSES.—Section 301(b) of the Federal Home Loan Mort-
gage Corporation Act (12 U.S.C. 1451 note) is amended— 
(1) by striking ''home" each place it appears in paragraphs 
(1) and (3) and inserting "residential"; 
(2) by striking "anar at the end of paragraph (2); 
(3) in paragraph (3)— 
(A) by striking the parentheses and all the matter 
contained therein and inserting the following: "(including 
activities relating to mortgages on housing for low- and 
moderate-income families involving a reasonable economic 
return that may be less than the return earned on other 
activities)**; and 
(B) by striking the period at the end and inserting 
"; and**; and 
(4) by adding at the end the following new paragraph: 
"(4) to promote access to mortgage credit throughout the 
Nation (including central cities, rural areas, and underserved 
areas) by increasing the liquidity of mortgage investments and 
improving the distribution of investment capitol available for 
residential mortgage financing.*'. 
(b) DEFINITIONS.—The third sentence of section 302(h) of the 
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451(h)) 
is amended b^ striking "made** and all that follows through 
"305(a)(1)'* and inserting "purchased from any public utility canying 
out activities in accordance with the requirements of title II of 
the National Energy Conservation Policy Act if the residential mort-
gage to be purchased is a loan or advance of credit the original 
proceeds of which are applied for in order to finance the purchase 
and installation of residential energy conservation measures (as 
defined in section 210(11) of the National Energy Conservation 
Policy Act) in residential real estate**. 
(c) BOARD OF DIRECTORS.— 
(1) 
IN GENERAL.—^The 
second 
sentence 
of 
section 
303(a)(2)(A) of the Federal Home Loan Mortgage Corporation 
Act (12 U.S.C. 1452(a)(2XA)) is amended— 
(A) by striking "and** after the second comma; and 
(B) by inserting before the period at the end the follow-
ing: ", and at least 1 person from an organization that 
has represented consumer or commimity interests for not 
less than 2 years or 1 person who has demonstrated a 
career commitment to the provision of housing for low-
income households**. 
12 use 1452 
(2) IMPLEMENTATION.—^The amendments made by para-
note, 
graph (1) shall apply to the first annual appointment by the 
President of members to the Board of Directors of the Federal 
Home Lo£in Mortgage Corporation that occurs £ifter the date 
of the enactment of this Act. 
(d) REMOVAL AUTHORITY OF PRESIDENT.—Section 303(aX2XB) 
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1452(aX2)(B)) is amended by inserting before the period at the 
end the following: ", except that any appointed member may be 
removed from office by the President for good cause". 
(e) GENERAL REGULATORY AUTHORITY.—Section 303(b) of the 
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(b)) 
is amended to read as follows: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4003 
"(b)(1) Except as provided in paragraph (2), the Corporation 
may make such capital distributions (as such term is defined in 
section 1303 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992) as may be declared by the Board 
of Directors. 
"(2) The Corporation may not make any capital distribution 
that would decrease the total capital of the Corporation (as such 
term is defined in section 1303 oi the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992) to an amount less 
than the risk-based capital level for the Corporation established 
imder section 1361 of such Act or that would decrease the core 
capital of the Corporation (as such term is defined in section 1303 
of such Act) to an amount less than the minimum capital level 
for the Corporation established under section 1362 of such Act, 
without prior written approval of the distribution by the Director 
of the Office of Federal Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development.". 
(f) COMPENSATION.—Section 303 of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1452) is amended— 
(1) in clause (9) of the first sentence of subsection (c), 
by inserting after "agents" the following: "as the Board of 
Directors determines reasonable and comparable with com-
pensation for employment in other similar businesses (including 
publicly held financial institutions or other major financial 
services companies) involving similar duties and responsibil-
ities, except that a significant portion of potential compensation 
of all executive officers (as such term is defined in subsection 
(h)(3)) of the Corporation shall be based on the performance 
of the Corporation ; and 
(2) by adding at the end the following new subsection: 
"(h)(1) Not later than June 30, 1993, and annually thereafter. 
Reports. 
the Corporation shall submit a report to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate on (A) the comparability of the compensation policies of 
the Corporation with the compensation policies of other similar 
businesses, (B) in the aggregate, the percentage of total cash com-
pensation and payments under employee benefit plans (which shall 
be defined in a manner consistent with the Corporation's proxy 
statement for the annual meeting of shareholders for the preceding 
year) earned by executive officers of the Corporation during the 
preceding year that was based on the Corporation's performance, 
and (C) the comparability of the Corporation's financial performance 
with the performance of other similar businesses. The report shall 
include a copy of the Corporation's proxy statement for the annual 
meeting of shareholders for the preceding year. 
"(2) Notwithstanding the first sentence of subsection (c), after 
the date of the enactment of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992, the Corporation may 
not enter into any agreement or contract to provide any payment 
of money or other thing of current or potential value in connection 
with the termination of employment of any executive officer of 
the Corporation, imless such agreement or contract is approved 
in advance by the Director of the OfiRce of Federal Housing Enter-
prise Oversight of the Department of Housing and Urban Develop-
ment. The Director may not approve any such agreement or contract 
unless the Director determines that the benefits provided under 
106 STAT. 4004 
PUBLIC LAW 102-550—OCT. 28, 1992 
the agreement or contract are comparable to benefits under such 
agreements for officers of other public and private entities involved 
in financial services and housing interests who have comparable 
duties and responsibilities. For purposes of this paragraph, any 
renegotiation, amendment, or chaJnge after sudi date of enactment 
to any such agreement or contract entered into on or before such 
date of enactment shall be considered entering into an agreement 
or contract. 
"(3) For purposes of this subsection, the term 'executive officer* 
has the meaning given the term in section 1303 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992.". 
(g) POWERS OF CORPORATION.—Section 303(c) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1452(c)) is 
amended by striking the second sentence. 
(h) REPEAL OF PROHIBITION ON PREJUDGMENT ATTACHMENT.— 
Section 303(f) of the Federal Home Loan Mortgage Corporation 
Act (12 U.S.C!. 1452(f)) is amended by striking the last sentence. 
(i) CAPITAL STOCK.—Section 304 of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1453) is amended— 
(1) by striking subsections (b), (c), and (d); 
(2) in subsection (aXD, by striking "(1) The common stock" 
and all that follows and inserting the following: The common 
stock of the Corporation shall consist of voting common stock, 
which shall be issued to such holders in the manner and 
amount, and subject to any limitations on concentration of 
ownership, as may be established by the Corporation."; and 
(3) in subsection (aX2)— 
(A) in the first sentence, by striking "nonvoting com-
mon stock and the"; 
(B) by striking the last sentence; and 
(C) by striking the paragraph designation and inserting 
"(b)". 
(j) MORTGAGE SELLERS.—Section 305(aXl) of the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1454(aXl)) is amended— 
(1) in the first sentence, by striking "from any Federal 
home loan bank" and all that follows through the end of the 
sentence and inserting a period; and 
(2) in the second sentence, by striking ", and the servicing" 
and all that follows through the end of the sentence and insert-
ing a period. 
(k) HIGH COST AREAS.—The last sentence of section 305(aX2) 
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(aX2)) is amended by striking "and Hawaii" and inserting 
"Hawaii, and the Virgin Islands". 
(1) REPEAL OF PROHIBITION ON MORTGAGE LIMITATIONS.—Sec-
tion 305 of the Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1454) is amended by striking subsection (c). 
(m) PRIOR APPROVAL OF SECRETARY FOR NEW PROGRAMS.— 
Section 305 of the Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1454) is amended by inserting after subsection (b) the 
following new subsection: 
"(c) The Corporation may not implement any new program 
(as such term is defined in section 1303 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992) before 
obtaining the approval of the Secretary imder section 1322 of such 
Act.". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4005 
(n) 
OBLIGATIONS 
AND 
SECURITIES 
AND 
ASSESSMENTS 
FOR 
OFFICE.—Section 306 of the Federal Home Loan Mortgage Corpora-
tion (12 U.S.C.1455) is amended— 
(1) in subsection (h)— 
(A) by inserting "(ir after "(h)"; and 
(B) by adding at the end the following new paragraph: 
"(2) The Corporation shall insert appropriate language in all 
of the obligations and securities of the Corporation issued under 
this section and section 305 clearly indicating that such obligations 
and securities, together with the interest thereon, are not guaran-
teed by the United States and do not constitute a debt or obligation 
of the United States or any agency or instrumentality thereof other 
than the Corporation."; and 
(2) in the first sentence of subsection (i), by striking "section 
303(c) or 306(c)" and inserting the following: "sections 303(c) 
and 1316(c) of this Act and assessments pursuant to section 
106 of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992". 
(o) GAO AUDITS.—Section 307(b) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1456(b)) is amended— 
(1) by inserting "(1)" after "(b)"; 
(2) by striking the first sentence and inserting the following 
new sentence: "The programs, activities, receipts, expenditures, 
and financial transactions of the Corporation shall be subject 
to audit by the Comptroller General of the United States under 
such rules and regulations as may be prescribed by the 
Comptroller General."; and 
(3) by adding at the end the following new paragraph: 
"(2) To carry out this subsection, the representatives of the 
General Accounting Office shall have access, upon request to the 
Corporation or any auditor for an audit of the Corporation under 
subsection (d), to any books, accounts, financial records, reports, 
files, or other papers, things, or property belonging to or in use 
by the Corporation and used in any such audit and to any papers, 
records, files, and reports of the auditor used in such an audit.", 
(p) FINANCIAL REPORTS TO DIRECTOR.—Section 307 of the Fed-
eral Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is 
amended by adding at the end the following new subsection: 
"(c)(1) The Corporation shall submit to the Director of the 
Office of Federal Housing Enterprise Oversight of the Department 
of Housing and Urban Development annual and quarterly reports 
of the financial condition and operations of the Corporation which 
shall be in such form, contain such information, and be submitted 
on such dates as the Director shall require. 
"(2) Each such annual report shall include— 
"(A) financial statements prepared in accordance with gen-
erally accepted accounting principles; 
"(B) any supplemental information or alternative presen-
tation that the Director may require; and 
"(C) an assessment (as of the end of the Corporation's 
most recent fiscal year), signed by the chief executive officer 
and chief accounting or financial officer of the Corporation, 
of— 
"(i) the effectiveness of the internal control structure 
and procedures of the Corporation; and 
"(ii) the compliance of the Corporation with designated 
safety and soundness laws. 
106 STAT. 4006 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(3) The Corporation shall also submit to the Director any 
other reports required by the Director pursuant to section 1314 
of the Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992. 
"(4) Each report of financial condition shall contain a declara-
tion by the president, vice president, treasurer, or any other officer 
designated by the Board of Directors of the Corporation to make 
such declaration, that the report is true and correct to the best 
of such officer's knowledge and belief.". 
(q) AUDITS OF FINANCIAL STATEMENTS.—Section 307 of the Fed-
eral Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is 
amended by adding after subsection (c) (as added by subsection 
(p) of this section) the following new subsection: 
"(dXD The Corporation shall have an annual independent audit 
made of its financial statements by an independent public accoimt-
ant in accordance with generally accepted auditing standards. 
"(2) In conducting an audit under this subsection, the independ-
ent public accoiuitant shall determine and report on whether the 
financial statements of the Corporation (A) are presented fairly 
in accordance with generally accepted accounting principles, and 
(B) to the extent determined necessary by the Director, comply 
with any disclosure requirements imposed under 
subsection 
(c)(2XB).< 
(r) MORTGAGE DATA COLLECTION AND REPORTING REQUIRE-
MENTS.—Section 307 of the Federal Home Loan Mortgage Corpora-
tion Act (12 U.S.C. 1456) is amended by adding after subsection 
(d) (as added by subsection (q) of this section) the following new 
subsection: 
"(eXl) The Corporation shall collect, maintain, and provide 
to the Secretary, in a form determined by the Secretary, data 
relating to its mortgages on housing consisting of 1 to 4 dwelling 
units. Such data shall include-— 
"(A) the income, census tract location, race, and gender 
of mortgagors under such mortgages; 
"(B) the loan-to-value ratios of purchased mortgages at 
the time of origination; 
"(C) whether a particular mortgage purchased is newly 
originated or seasoned; 
"(D) the number of imits in the housing subject to the 
mortgage and whether the units are owner-occupied; and 
"(E) any other characteristics that the Secretary considers 
appropriate, to the extent practicable. 
"(2) The Corporation shall collect, maintain, and provide to 
the Secretary, in a form determined by the Secretary, data relating 
to its mortgages on housing consisting of more than 4 dwelling 
units. Such data shall include— 
"(A) census tract location of the housing; 
"(B) income levels and characteristics of tenants of the 
housing (to the extent practicable); 
"((J) rent levels for units in the housing; 
"(D) mortgage characteristics (such as the number of luiits 
financed per mortgage and the amount of loans); 
"(E) mortgagor characteristics (such as nonprofit, for-profit, 
limited equity cooperatives); 
"(F) use of funds (such as new construction, rehabilitation, 
refinancing); 
"(G) type of originating institution; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4007 
"(H) any other information that the Secretary considers 
appropriate, to the extent practicable. 
"(3)(A) Except as provided in subparagraph (B), this subsection 
shall apply only to mortgages purchased by the Corporation after 
December 31,1992. 
"(B) This subsection shall apply to any mortgage purchased 
by the Corporation after the date determined under subparagraph 
(A) if the mortgage was originated before such date, but only to 
the extent that the data referred in paragraph (1) or (2), as 
applicable, is available to the Corporation. . 
(s) REPORT ON HOUSING ACTIVITIES.—Section 307 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is amended 
by adding after subsection (e) (as added by subsection (r) of this 
section) the following new subsection: 
"(f)(1) The Corporation shall submit to the Committee on Bank-
ing, Finance and Urban Affairs of the House of Representatives, 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate, and the Secretary a report on its activities under subpart 
B of part 2 of subtitle A of the Federal Housing Enterprises Finan-
cial Safe^ and Soundness Act of 1992. 
"(2) The report under this subsection shall— 
"(A) include, in aggregate form and by appropriate category, 
statements of the dollar volume and nimiber of mortgages 
on owner-occupied and rental properties purchased which relate 
to each of the annual housing goals established under such 
subpart; 
"(B) include, in aggregate form and by appropriate category, 
statements of the number of families served by the Corporation, 
the income class, race, and gender of homebuyers served, the 
income class of tenants of rental housing (to the extent such 
information is available), the characteristics of the census 
tracts, and the geographic distribution of the housing financed; 
"(C) include a statement of the extent to which the mort-
gages purchased by the Corporation have been used in conjunc-
tion with public suDsidy programs under Federal law; 
"(D) include statements of the proportion of mortgages 
on housing consisting of 1 to 4 dwelling units purchased by 
the Corporation that have been made to first-time homebuyers, 
as soon as providing such data is practicable, and identifying 
any special programs (or revisions to conventional practices) 
facilitating homeownership opportunities for first-time home-
buyers; 
"(E) include, in aggregate form and by appropriate category, 
the data provided to the Secretary under subsection (eXlXB); 
"(F) compare the level of securitization versus portfolio 
activity; 
"(G) assess underwriting standards, business practices, 
repurchase requirements, pricing, fees, and procedures, that 
affect the purchase of mortgages for low- and moderate-income 
families, or that may jrield disparate results based on the 
race of the borrower, including revisions thereto to promote 
affordable housing or fair lending; 
"(H) describe trends in both the primary and secondary 
multifamily housing mortgage markets, including a description 
of the progress made, and any factors impeding progress, 
toward standardization and securitization of mortgage products 
for multifamily housing; 
106 STAT. 4008 
PUBLIC LAW 102-550—OCT. 28, 1992 
Public 
information. 
Regulations. 
12 use 1451 
note. 
^ 
"(I) describe trends in the delinquency and default rates 
of mortgages secured by housing for low- and moderate-income 
families that have been purchased by the Corporation, including 
a comparison of such trends with delinquency and default 
information for mortgage products serving households with 
incomes above the median level that have been purchased 
by the Corporation, and evaluate the impact of such trends 
on the standards and levels of risk of mortgage products serving 
low- and moderate-income families; 
"(J) describe in the aggregate the seller and servicer net-
work of the Corporation, including the volume of mortgages 
purchased from minority-owned, women-owned, and commu-
nity-oriented lenders, and any efforts to facilitate relationships 
with such lenders; 
**(K) describe the activities undertaken by the Corporation 
with nonprofit and for-profit organizations and with State and 
local governments and housing finance agencies, including how 
the Corporation's activities support the objectives of comprehen-
sive housing affordability strategies imder section 105 of the 
Cranston-Gonzalez National Affordable Housing Act; and 
"(L) include any other information that the Secretary 
considers appropriate. 
"(3)(A) The Corporation shall make each report imder this 
subsection available to the public at the principal and regional 
offices of the Corporation. 
"(B) Before making a report under this subsection available 
to the public, the Corporation may exclude from the report informa-
tion that the Secretary has determined is proprietary information 
under section 1326 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992.". 
(t) HOUSING ADVISORY COUNCIL.—Section 307 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is amended 
by adding'after subsection (f) (as added by subsection (s) of this 
section) the following new subsection: 
"(gXD Not later than 4 months after the date of enactment 
of the Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992, the Corporation shall appoint an Affordable Housing 
Advisory Council to advise the Coiporation regarding possible meth-
ods for promoting affordable housing for low- and moderate-income 
families. 
"(2) The Affordable Housing Advisory Council shall consist of 
15 individuals, who shall include representatives of commimity-
based and other nonprofit and for-profit organizations and State 
and local government agencies actively engaged in the promotion, 
development, or financing of housing for low- and moderate-income 
families.". 
SEC. 1383. IMPLEMENTATION. 
(a) IN GENERAL.—^The Secretary of Housing and Urban Develop-
ment and the Director, as appropriate, shall issue any final regula-
tions necessary to implement the amendments made by this subtitle 
not later than the expiration of the 18-month period beginning 
on the date of the enactment of this Act. 
(b) NOTICE AND COMMENT.—^The regulations imder this section 
shall be issued after notice and opportunity for public comment 
pursuant to the provisions of section 553 of title 5, United States 
Code. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4009 
Subtitle E—^Regulation of Federal Home 
Loan Bank System 
SEC. 1391. PRIMACY OF FINANCIAL SAFETY AND SOUNDNESS FOR 
FEDERAL HOUSING FINANCE BOARD. 
Section 2A(aX3) of the Federal Home Loan Bank Act (12 U.S.C. 
1422a(aX3)) is amended to read as follows: 
"(3) DUTIES.— 
"(A) SAFETY AND SOUNDNESS.—The primary duty of the 
Bosurd shall be to ensure that the Federal Home Loan Banks 
operate in a 
financially^ 
safe and soimd manner. 
"(B) OTHER DUTIES.—^To the extent consistent with subpara-
graph (A), the duties of the Board shall also be— 
"(i) to supervise the Federal Home Loan Banks; 
"(ii) to ensure that the Federal Home Loan Banks 
carry out their housing finance mission; and 
"(iii) to ensure that the Federal Home Loan Banks 
remain adequately capitalized and able to raise funds in 
the capital markets.". 
SEC. 1392. ADVANCES UNDER FEDERAL HOME LOAN BANK ACT. 
(a) ADVANCES TO NONQUALIFIED THRIFT LENDER MEMBERS.— 
Section 10(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(eX2)) is amended by striking the second sentence and inserting 
the following new sentence: "The aggregate amount of the advances 
by the Federal Home Loan Bank System to members that are 
not qualified thrift lenders shall not exceed 30 percent of the total 
advances of the Federal Home Loan Bank System.". 
(b) EXCEPTION TO REQUIREMENTS FOR ADVANCES.—Section 10b 
of the Federal Home Loan Bank Act (12 U.S.C. 1430b) is amended— 
(1) in the first sentence, by inserting before "Each" the 
following new subsection designation and heading: "(a) IN GEN-
ERAL.—"; and 
(2) by adding at the end the following new subsection: 
"(b) EXCEPTION.—^An advance made to a State housing finance 
agency for the purpose of facilitating mortgage lending that benefits 
individuals and families that meet the income requirements set 
forth in section 142(d) or 143(f) of the Internal Revenue Code 
of 1986, need not be collateralized by a mortgage insured under 
title II of the National Housing Act or otherwise, i
f
— 
"(1) such advance otherwise meets the requirements of 
this subsection; and 
"(2) such advance meets the requirements of section ICXa) 
of this Act, and any real estate collateral for such loan com-
prises, single family or multifamily residential mortgages.". 
SEC. 1393. STUDIES REGARDING FEDERAL HOME LOAN BANK SYSTEM. 
(a) IN GENERAL.—The Federal Housing Finance Board, the 
Comptroller General of the United States, the Director of the 
Congressional Budget Ofilce, and the Secretary of Housing and 
Urban Development shall each conduct a study analyzing and mak-
ing appropriate recommendations with respect to the following 
topics: 
(1) The appropriate capital standards for the Federal Home 
Loan Bank System. 
106 STAT. 4010 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) The relationship between the capital standards for the 
Federal Home Loan Bank System and the capital standards 
imder this title for the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation. 
(3) The relationship between the capital standards for fed-
erally insured depository institutions and the capital standards 
imder this title for the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation. 
(4) The advantages and disadvantages of expanding credit 
products and services for member institutions of the Federal 
Home Loan Bank System, including a determination of the 
feasibility of Federal Home Loan Banks (A) purchasing housing-
related assets from member institutions, (B) providing credit 
enhancements and other products to members in addition to 
making advances, and (C) making direct loans for housing 
, construction. 
' 
(5) The advantages and disadvantages of expanding eligible 
collateral for advances to member institutions of the Federal 
Home Loan Bank System by removing the limits on the amount 
of housing-related assets that member institutions can use 
to collateralize advances. 
(6) The advantages and disadvantages of further measures 
to expand the role of the Federal Home Loan Bank System 
as a support mechanism for community-based lenders and to 
reinforce the overall role of the System in housing finance. 
(7) The advantages and disadvantages of measures to 
increase membership in, and increase the profitability of, the 
System by modif3dng— 
(A) restrictions on membership and stock purchases 
of nonqualified thrift lenders; 
(B) the overall advance limit imposed on the Federal 
Home Loan Bank System to nonqualified thrift lenders; 
and 
(C) the membership requirement for qualified thrift 
lenders. 
(8) The competitive effect of the mortgage activities of 
the Federal National Mortgage Association and the Federal 
Home Loan Mortgage Corporation on the home mortgage activi-
ties of federally insured depository institutions and the cost 
of such activities to such institutions, the Savings Association 
Insurance Fund, and the Resolution Trust Corporation. 
(9) The likelihood that the Federal Home Loan Banks 
will be able to continue to pay the amounts required luider 
the Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989. 
(10) The extent to which a reduction in the number of 
Federal Home Loan Banks would reduce noninterest costs of 
the System. 
(11) The impact that a reduction in the number of Federal 
Home Loan Banks would have on the effectiveness of affordable 
housing programs and community support programs under the 
Federal Home Loan Bank System. 
(12) The impact that a reduction in the number of Federal 
Home Loan Banks would have on the availability of affordable 
housing in rural areas and the ability of small rural financial 
institutions to provide housing financing. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4011 
(13) The current and prospective impact of the Federal 
Home Loan Bank System on— 
(A) the availability and affordability of housing for 
low- and moderate-income hoiiseholds; ana 
(B) the relative availability of housing credit across 
geographic areas, with particular regard to differences 
depending on whether properties are mside or outside of 
central cities. 
(14) The appropriateness of extending to the Federal Home 
Loan Bank System the public purposes and housing goals estab-
lished for the Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation imder this title, 
the Federal National Mortgage Association Charter Act, and 
the Federal Home Loan Mortgage Corporation Act. 
(b) REPORTS.—^Not later than 6 months after the date of the 
enactment of this Act, the Federal Housing Finance Board, the 
Comptroller General, the Director of the Congressional Budget 
Oftice, and the Secretary of Housing and Urban Development shall 
each submit to the Committee on Banking, Finance and Urban 
Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a report on 
the studies required under subsection (a) containing any rec-
ommendations for legislative action based on the results of the 
studies. 
(c) COMMENTS.—^The Secretary of the Treasury, the Director 
of the Office of Federal Housing Enterprise Oversight, the Federal 
Home Loan Mortgage Corporation, and the Federal National Mort-
gage Association shall each submit to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate any recommendations and opinions regarding the studies 
imder subsection (a), to the extent that the recommendations and 
views of such officers and entities differ from the recommendations 
and opinions of the Federal Housing Finance Board, the Comptroller 
General, the Director of Congressional Budget Office, and the 
Secretary of Housing and Urban Development. 
(d) DEFINITION.—For purposes of tnis section, the term "hous-
ing-related assets'* means residential mortgages, residential mort-
gage-related securities, loans or loan participations secured by 
residential real estate, housing production loans, and warehouse 
lines of credit for residential mortgage banking activities. 
SEC. 1394. REPORT OF FEDERAL HOME LOAN BANK MEMBERS. 
(a) IN GENERAL.—The Federal Home Loan Banks shall establish Establishment. 
a committee to be known as the Study Committee. The Studv 
Committee shall be comprised of 24 members, of whom 2 shall 
be elected by the Board of Directors of each Federal Home Loan 
Bank from among officers or directors of stockholder institutions 
of the Federal Home Loan Bank. Each Federal Home Loan Bank 
shall elect members to the Study Committee not later than 45 
days after the date of the enactment of this Act. 
(b) STUDY AND REPORT.—The Study Committee referred to in 
subsection (a) shall conduct a study on the topics referred to in 
section 1391(a) and on the costs and benefits of consolidation of 
the Federal Home Loan Bank System. Not later than 6 months 
after the date of the enactment of this Act, the Study Committee 
shall submit a report to the Committee on Banking, Finance and 
106 STAT. 4012 
PUBLIC LAW 102-550—OCT. 28, 1992 
Stewart B. 
McKinney 
Homeless 
Housing 
Assistance 
Amendments 
Act of 1992. 
Urban Affairs of the House of Representatives, the Committee 
on Banking, Housing, and Urban Affairs of the Senate, the Federal 
Housing Fmance Board, and the presidents of tiie Federal Home 
Loan Banks on its findings, including any recommendations for 
legislative or administrative action, together with any minority 
views or recommendations. 
SEC. 139S. REPORTS 
REGARDING 
CONSOLIDATION 
OF 
FEDERAL 
, HOME LOAN BANK SYSTEM. 
Not later than 6 months after the date of the enactment of 
this Act, the Board of Directors of each Federal Home Loan Bank 
shall submit to the Committee on Banking, Finance and Urban 
Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a report of 
the directors' evaluation of the costs and benefits of consolidating 
the Federal Home Loan Bank System. 
TITLE 
XIV—HOUSING 
PROGRAMS 
UNDER 
STEWART 
B. 
MCKINNEY 
HOMELESS ASSISTANCE ACT 
Subtitle A—Housing Assistance 
42 u s e 11301 
note. 
SEC. 1401. SHORT TITLE. 
This title may be cited as the ''Stewart B. McKinney Homeless 
Housing Assistance Amendments Act of 1992". 
SEC. 1402. EMERGENCY SHELTER GRANTS PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 417 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11377) 
is amended to read as follows: 
"SEC. 417. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this 
subtitle $138,000,000 for fiscal year 1993 and $143,796,000 for 
fiscal year 1994.". 
(b) EMPLOYMENT OF HOMELESS INDIVIDUALS.—Section 415(c) 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11375(c)) is amended— 
(1) at the end of paragraph (1), by striking the period 
and inserting a semicolon; 
(2) at the end of paragraph (3), by striking "tmd"; 
(3) in paragraph (4)— 
(A) by inserting "it will" afl»r "State,"; and 
(B) by striking "and" at the end; 
(4) in paragraph (5)— 
(A) by inserting "it will" before "develop"; and 
(B) by striking the period at the end and inserting 
a semicolon; 
(5) in the paragraph that follows paragraph (5) (as added 
by section 832(hX3) of the Cranston-Gonzalez National Afford-
able Housing Act (Public Law 101-625; 104 Stat. 4362))— 
(A) by redesignating the paragraph as paragraph (6); 
and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4013 
(B) by striking the period at the end and inserting 
"; and"; and 
(6) by adding at the end the following new paragraph: 
"(7) to the maximum extent practicable, it will involve, 
through employment, volunteer services, or otherwise, homeless 
individuals and families in constructing, renovating, maintain-
ing, and operating facilities assisted under this subtitle, in 
providing services assisted under this subtitle, and in providing 
services for occupants of facilities assisted under this subtitle.". 
(c) PARTICIPATION OF HOMELESS INDIVIDUALS.—Section 415 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11375) is amended by adding at the end the following new sub-
section: 
"(d) PARTICIPATION OF HOMELESS INDIVIDUALS.—The Secretary 
shall, by regulation, require each recipient that is not a State 
to provide for the participation of not less than 1 homeless individ-
ual or former homeless individual on the board of directors or 
other equivalent policymaking entity of such recipient, to the extent 
that such entity considers and makes policies and decisions regard-
ing any facilitv, services, or other assistence of the recipient assisted 
luider this subtitle. The Secretary may grant waivers to recipients 
unable to meet the requirement under the preceding sentence if 
the recipient agrees to otherwise consult with homeless or formerly 
homeless individuals in considering and making such policies and 
decisions.". 
(d) TERMINATION OF ASSISTANCE.—Section 415 of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11375) is amended 
by adding after subsection (d) (as added by subsection (c) of this 
section) the following new subsection: 
"(e) TERMINATION OF ASSISTANCE.—If an individual or family 
who receives assistance under this subtitle from a recipient violates 
program requirements, the recipient may terminate assistance in 
accordance with a formal process esteblished by the recipient that 
recognizes the rights of individuals afiTected, which may include 
a hearing.". 
(e) ELIGIBILITY OF STAFF COSTS.—Section 414(aX3) of the Stew-
art B. McKinney Homeless Assistance Act (42 U.S.C. 11374(aX3)) 
is amended— 
(1) by striking "(other than stafO"; and 
(2) by inserting before the period at the end the following: 
", except that not more than 10 percent of the amount of 
any grant received under this subtitle may be used for costs 
ofstefif". 
SEC. 1403. SUPPORTIVE HOUSING PROGRAM. 
(a) IN GENERAL.—Title IV of the Stewart B. McKinney Home-
less Assistence Act (42 U.S.C. 11361 et seq.) is amended by striking 
subtitles C and D and inserting the following new subtitle: 
"Subtitle C—Supportive Housing Program 
Regulations. 
42 use 11381-
11394. 
•«EC. 421. PURPOSE. 
'The purpose of the program under this subtitle is to promote 
the development of supportive housing and supportive services, 
including innovative approaches to assist homeless persons in the 
transition from homelessness, and to promote the provision of 
42 use 11381. 
106 STAT. 4014 
PUBLIC LAW 102-550—OCT. 28, 1992 
supportive housing to homeless persons to enable them to live 
as independently as possible. 
42 use 11382. 
*SEC. 422. DEFINITIONS. 
"For purposes of this subtitle: 
(1) The term 'applicant' means a State, Indian tribe, metro-
politan city, urban county, governmental entity, private non-
profit organization, or commimity mentcd health association 
that is a public nonprofit organization, that is eligible to receive 
assistance under this subtitle and submits an application under 
section 426(a). 
"(2) The term 'disability means— 
"(A) a disability as defined in section 223 of the Social 
Security Act, 
"(B) to be determined to have, pursuant to regulations 
issued by the Secretary, a physical, mental, or emotional 
impairment which (i) is expected to be of long-continued 
and indefinite duration, (ii) substantially impedes an 
individual's ability to live independently, and (iii) of such 
a nature that such ability could be improved by more 
suitable housing conditions, 
"(C) a developmental disability as defined in section 
102 of the Developmental Disabilities Assistance £uid Bill 
ofRights Act, or 
"(D) the disease of acquired immunodeficiency syn-
drome or any conditions arising from the etiologic agency 
for acquired immunodeficiency sjmdrome. 
Subparagraph (D) shall not be construed to limit eligibility 
under subparagraphs (A) through (C) or the provisions referred 
to in subparagraphs (A) through (C). 
"(3) The term 'Indian tribe' has the meaning given the 
term in section 102(a) of the Housing and Community Develop-
ment Act of 1974. 
"(4) The term 'metropolitan city has the meaning given 
the term in section 102 of me Housing and Community Develop-
ment Act of 1974. 
"(5) The term 'operating costs' means expenses incurred 
by a recipient operating supportive housing imder this subtitle 
with respect to— 
"(A) the administration, maintenance, repair, and secu-
rity of such housing; 
"(B) utilities, fael, furnishings, and equipment for such 
housing; and 
"(C) the conducting of the assessment under section 
426(cX2). 
"(6) The term 'outpatient health services' means outpatient 
health care, outpatient mental health services, outpatient sub-
st£ince abuse services, and case management. 
"(7) The term 'private nonprofit organization' means an 
organization— 
"(A) no part of the net earnings of which inures 
to the benefit of any member, founder, contributor, or 
individual; 
"(B) that has a volimtary board; 
"(C) that has an accounting system, or has designated 
a fiscal agent in accordance with requirements established 
by the Secretary; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4015 
"(D) that practices nondiscrimination in the provision 
of assistance. 
"(8) The term 'project* means a structure or structures 
(or a portion of such structure or structures) that is acquired, 
rehabilitated, constructed, or leased with assistance provided 
under this subtitle or with respect to which the Secretary 
provides technical assistance or annusd payments for operating 
costs imder this subtitle, or supportive services. 
"(9) The term 'recipient* means anv governmental or non-
profit entity that receives assistance under this subtitle. 
"(10) The term 'Secretary* means the Secretary of Housing 
and Urban Development. 
"(11) The term 'State* means each of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
the Virgin Islands, Guam, American Samoa, the Northern Mari-
ana Islands, and Palau. 
"(12) The term 'supportive housing* means a project that 
meets the requirements of section 424. 
"(13) The term 'supportive services* means services under 
section 425. 
"(14) The term 'urban county* has the meaning given the 
term in section 102 of the Housing and Community Develop-
ment Act of 1974. 
«SEC. 423. EUGIBLE ACnVITIES. 
42 USC 11383. 
"(a) IN GENERAL.—^The Secretary may provide any project with 
one or more of the following tjrpes of assistance under this subtitle: 
"(1) ACQUISITION AND REHABILITATION.—A grant, in an 
amount not to exceed $200,000, for the acquisition, rehabilita-
tion, or acquisition and rehabilitation, of an existing structure 
(including a small commercial property or ofilce space) to pro-
vide supportive housing other than emergency shelter or to 
provide supportive services; except that the Secretary may 
increase the dollar limitation under this sentence to not more 
than $400,000 for areas that the Secretary finds have high 
acquisition and rehabilitation costs. The repajonent of any 
outstanding debt owed on a loan made to purchase an existing 
structure shall be considered to be a cost of acquisition eligible 
for a grant under this paragraph if the structure was not 
used as supportive housing, or to provide supportive services, 
before the receipt of assistance. 
"(2) NEW CONSTRUCTION.—A grant, in an amount not to 
exceed $400,000, for new construction of a structure to provide 
supportive housing. 
"(3) LEASING.—^A grant for leasing of an existing structure 
or structures, or portions thereof, to provide supportive housing 
or supportive services during the period covered by the applica-
tion. Grreint recipients may reapply for such assistance as 
needed to continue the use of such structure for purposes of 
this subtitle. 
"(4) OPERATING COSTS.—^Annual payments for operating 
costs of housing assisted under this subtitle, not to exceed 
75 percent of the annual operating costs of such housing. Grant 
recipients may reapply for such assistance as needed to con-
tinue the use of the housing for purposes of this subtitle. 
"(5) SUPPORTIVE SERVICES.—^A grant for costs of supportive 
services provided to homeless individuals. Any recipient, includ-
106 STAT. 4016 
PUBLIC LAW 102-550—OCT. 28, 1992 
ing program recipients under title IV of this Act before the 
date of the enactment of the Housing and Community Develop-
ment Act of 1992, may reapply for such assistance or for the 
renewal of such assistance to continue services funded under 
prior grants or to provide other services. 
"(6) TECHNICAL ASSISTANCE.—^Technical assistance in carry-
ing out the purposes of this subtitle. 
"(b) USE RESTRICTIONS.— 
"(1) ACQUISITION, REHABILITATION, AND NEW CONSTRUC-
TION.—Projects assisted under subsection (a) (1) or (2) shall 
be operated for not less than 20 years for the purpose specified 
in the application. 
"(2) OTHER ASSISTANCE.—Projects assisted under subsection 
(a) (3), (4), (5), or (6) (but not under subsection (a) (1) or 
(2)) shall be operated for the purposes specified in the applica-
tion for the duration of the period covered by the grant. 
"(3) CONVERSION.—If the Secretary determines that a 
project is no longer needed for use as supportive housing and 
approves the use of the project for the direct benefit of low-
income persons pursuant to a request for such use by the 
recipient operating the project, the Secretary may authorize 
the recipient to convert the project to such use. 
"(c) REPAYMENT OF ASSISTANCE AND PREVENTION OF UNDUE 
BENEFITS.— 
^
^
^
^
^
^
^
^ 
- M' 
"(1) REPAYMENT.—The Secretary shall require recipients 
to repay 100 percent of any assistance received under subsection 
(a) (1) or (2) if the project ceases to be used as supportive 
housing within 10 years after the project is placed in service. 
If such project is used as supportive housing for more than 
10 years, the Secretary shall reduce the percentage of the 
amount required to be repaid by 10 percentage points for each 
year in excess of 10 that the project is used as supportive 
housing. 
"(2) PREVENTION OF UNDUE BENEFITS.—Except as provided 
in paragraph (3), upon any sale or other disposition of a project 
assisted under subsection (a) (1) or (2) occurring before the 
expiration of the 20-year period beginning on the date that 
the project is placed in service, the recipient shall comply 
with such terms and conditions as the Secretary may prescribe 
to prevent the recipient from unduly benefiting from such sale 
or disposition. 
"(3) EXCEPTION.—^A recipient shall not be required to com-
ply with the terms and conditions prescribed under paragraphs 
(1) and (2) if the sale or disposition of the project results 
in the use of the project for the direct benefit of very low-
income persons or if all of the proceeds are used to provide 
supportive housing meeting the requirements of this subtitle. 
42 use 11384. 
"SEC. 424. SUPPORTIVE HOUSING. 
"(a) IN GENERAL.—Housing providing supportive services for 
homeless individuals shall be considered supportive housing for 
purposesof this subtitle if— 
"(1) the housing is safe and sanitary and meets any 
applicable State and local housing codes and licensing require-
ments in the jurisdiction in which the housing is located; and 
"(2) the housing— 
"(A) is transitional housing; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4017 
"(B) is permanent housing for homeless persons with 
disabilities; or 
"(C) is, or is part of, a particularly innovative project 
for, or alternative methods of, meeting the immediate and 
long-term needs of homeless individuals and families. 
"(b) TRANSITIONAL HOUSING.—For purposes of this section, the 
term 'transitional housing' means housing, the purpose of which 
is to facilitate the movement of homeless individuals and families 
to permanent hoiising within 24 months or such longer period 
as the Secretary determines necessary. The Secretary may deny 
assistance for housing based on a violation of this subsection only 
if the Secretary determines that a substantial number of homeless 
individuals or families have remained in the housing longer than 
such period. 
"(c) 
PERMANENT HOUSING FOR HOMELESS PERSONS 
WITH 
DISABILITIES.—For purposes of this section, the term 'permanent 
housing for homeless persons with disabilities' means community-
based housing for homeless persons with disabilities that provides 
long-term housing and supportive services for not more than— 
"(1) 8 such persons in a single structure or contiguous 
structures; 
"(2) 16 such persons, but only if not more than 20 percent 
of the units in a structure are designated for such persons; 
or 
"(3) more than 16 persons if the applicant demonstrates 
that local market conditions dictate the aevelopment of a large 
project and such development will achieve the neighborhood 
integration objectives oi the program within the context of 
the affected community. 
"(d) SINGLE ROOM OCCUPANCY DWELLINGS.—A project may pro-
vide supportive housing or supportive services in dwelling units 
that do not contain bathrooms or kitchen facilities and are appro-
priate for use as supportive housing or in projects containing some 
or all such dwelling units. 
"SEC. 426. SUPPORTIVE SERVICES. 
42 USC 11385. 
"(a) IN GENERAL.—^To the extent practicable, each project shall 
provide supportive services for residents of the project and homeless 
persons using the project, which may be designed by the recipient 
or participants. 
"(b) KEQUIREMENTS.—Supportive services provided in connec-
tion with a project shall address the special needs of individuals 
(such as homeless persons with disabilities and homeless families 
with children) intended to be served by a project. 
"(c) SERVICES.—Supportive services may include such activities 
as (A) establishing and operating a child care services program 
for homeless families, (B) establishing and operating an employment 
assistance program, (C) providing outpatient health services, food, 
and case management, (D) providing assistance in obtaining perma-
nent housing, emplojnnent counseling, and nutritional counseling, 
(E) providing security arrangements necessary for the protection 
of residents of supportive housing and for homeless persons using 
the housing or project, (F) providing assistance in obtaining other 
Federal, State, and local assistance available for such residents 
(including mental health benefits, employment coimseling, and 
medical assistance, but not including major medical equipment), 
and (G) providing other appropriate services. 
106 STAT. 4018 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(d) PROVISION OF SERVICES.—Services provided pursuant to 
this section may be provided directly by the recipient or by contract 
with other public or private service providers. Such services may 
be provided to homeless individuals wno do not reside in supportive 
housing. 
"(e) COORDINATION WITH SECRETARY OF HEALTH AND HUMAN 
SERVICES.— 
"(1) APPROVAL.—Promptly upon receipt of any application 
for assistance under this subtitle that includes the provision 
of outpatient health services, the Secretary of Housing and 
Urban Development shall consult with the Secretary of Health 
and Human Services with respect to the proposed outpatient 
health services. If, within 45 days of such consultation, the 
Secretary of Health and Human Services determines that the 
proposal for delivery of the outpatient health services does 
not meet guidelines for determining the appropriateness of 
such proposed services, the Secretary of Housing and Urban 
Development may require resubmission of the application, and 
the Secretary of Housing and Urban Development may not 
approve such portion of the application unless and until such 
portion has been resubmitted in a form that the Secretary 
of Health and Human Services determines meets such guide-
lines. 
"(2) GUIDELINES.—The Secretary of Housing and Urban 
Development and the Secretary of Health and Human Services 
shall jointly establish guidelines for determining the appro-
priateness of proposed outpatient health services under this 
section. Such guidelines shall include any provisions necessary 
to enable the Secretary of Housing and Urban Development 
to meet the time limits under this subtitle for the final selection 
of applications for assistance. 
42USC11386. 
"SEC. 426. PROGRAM REQUIREMENTS. 
"(a) APPLICATIONS.— 
- 
"(1) FORM AND PROCEDURE,—^Applications for assistance 
* under this subtitle shall be submitted by applicants in the 
form and in accordance with the procedures established by 
the Secretary. The Secretary may not give preference or priority 
to any application on the basis that the application was submit-
ted by any particular type of applicant entity. 
"(2) CONTENTS.—^The Secretary shall require that applica-
tions contain at a minimum— 
"(A) a description of the proposed project, including 
the activities to be undertaken; 
"(B) a description of the size and characteristics of 
the population that would occupy the supportive housing 
assisted under this subtitle; 
"(C) a description of the public and private resources 
that are expected to be made available for the project; 
"(D) in the case of projects assisted under section 423(a) 
(1) or (2), assiu-ances satisfactory to the Secretary that 
the project will be operated for not less than 20 years 
for the purpose specified in the application; 
"(E) in the case of projects assisted under this title 
that do not receive assistance under such sections, annual 
assurances during the period specified in the application 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4019 
that the project will be operated for the purpose specified 
in the appUcation for such period; 
"(F) a certification fi:t)m the public official responsible 
for submitting the comprehensive housing afibrdability 
strategy under section 105 of the Cranston-Gonzalez 
National Affordable Housing Act for the State or unit of 
general local government within which the project is located 
that the proposed project is consistent with the approved 
housing strategy of such State or unit of general local 
government; and 
"(G) a certification that the applicant will comply with 
the reqmrements of the Fair Housing Act, title \^ of the 
Civil ^ghts Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and the; Age Discrimination Act of 1975, and 
will affirmatively further fair housing. 
"(3) SITE CONTROL.—^The Secretary shall require that each 
application include reasonable assurances that the applicant 
will own or have control of a site for the proposed project 
not later than the expiration of the 12-month period beginning 
upon notification of an award for grant assistance, unless the 
application proposes providing supportive housing assisted 
under section 423(aX3) or housing that will eventually be owned 
or controlled by the families and individuals served. An 
applicant may obtain ownership or control of a suitable site 
cUfferent from the site specified in the application. If any recipi-
ent fails to obtain ownership or control of the site within 
12 months afi^r notification of an award for grant assistance, 
the grant shall be recaptured and reallocated under this 
subtitle. 
"(b) SELECTION CRITERIA.—The Secretary shall select applicants 
approved by the Secretary as to financial responsibility to receive 
assistance under this subtitle by a national competition based on 
criteria established by the Secretary, which shall include— 
"(1) the ability of the applicant to develop and operate 
a project; 
''(2) the innovative quality of the proposal in providing 
a project; 
"(3) the need for the type of project proposed by the 
applicant in the area to be served; 
"(4) the extent to which the amount of assistance to be 
provided under this subtitle will be supplemented with 
resources from other public and private sources; 
"(5) the cost-effectiveness of the proposed project; 
"(6) the extent to which the applicant has demonstrated 
coordination with other Federal, State, local, private and other 
entities serving homeless persons in the planning and operation 
of the project, to the extent practicable; and 
"(7) such other factors as the Secretary determines to be 
appropriate to carry out this subtitle in an effective and efficient 
manner. 
"(c) REQUIRED AGREEMENTS.—^The Secretary may not provide 
assistance for any project imder this subtitle unless the applicant 
agrees— 
"(1) to operate the proposed project in accordance with 
the provisions of this subtitle; 
106 STAT. 4020 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(2) to conduct an ongoing assessment of the supportive 
services required by homeless individuals served by the project 
and the availability of such services to such individuals; 
''O) to provide such residential supervision as the Secretary 
determines is necessary to facilitate the adequate provision 
of supportive services to the residents and users of the project; 
''(4) to monitor and report to the Secretary on the progress 
of the project; 
"(5) to develop and implement procedures to ensure (A) 
the confidentiality of records pertaining to any individual pro-
vided family violence prevention or treatment services through 
any project assisted imder this subtitle, and (B) that the address 
or location of any family violence shelter project assisted imder 
this subtitle will not be made public, except with written 
authorization of the person or persons responsible for the oper-
ation of such project; 
"(6) to the maximum extent practicable, to involve homeless 
individuals and families, through emplo3rment, volunteer serv-
ices, or otherwise, in constructing, rehabilitating, maintaining, 
and operating the project assisted under this subtitle and in 
providing supportive services for the project; and 
"(7) to comply with such other terms and conditions as 
the Secretary may establish to carry out this subtitle in an 
effective and efficient manner. 
"(d) OCCUPANCY CHARGE.—Each homeless individual or family 
residing in a project providing supportive housing may be required 
to pay an occupancy charge in an amount determined by the recipi-
ent providing the project, which may not exceed the amount deter-
mined imder section 3(a) of the United States Housing Act of 
1937. Occupancy charges paid may be reserved, in whole or in 
part, to assist residents in moving to permanent housing. 
"(e) MATCHING FUNDING.—Each recipient shall be required to 
supplement the amount of assistance provided under paragraphs 
(1) and (2) of section 423(a) with an equal amount of funds from 
sources other than this subtitle. 
"(f) FLOOD PROTECTION STANDARDS.—Flood protection stand-
ards applicable to housing acquired, rehabilitated, constructed, or 
assisted imder this subtitle shall be no more restrictive than the 
standards applicable under Executive Order No. 11988 (May 24, 
1977) to the other programs under this title. 
Regulations. 
"(g) PARTICIPATION OF HOMELESS INDIVIDUALS.—^The Secretary 
shall, by regulation, require each recipient to provide for the partici-
pation of not less than 1 homeless individual or former homeless 
individual on the board of directors or other equivalent policymaking 
entity of the recipient, to the extent that such entity considers 
and makes policies and decisions regarding any project, supportive 
services, or assistance provided under this subtitle. The Secretary 
may grant waivers to applicants unable to meet the requirement 
under the preceding sentence if the applicant agrees to otherwise 
consult with homeless or formerly homeless individuals in consider-
ing and making such policies and decisions. 
"(h) LIMITATION ON USE OF FUNDS.—^No assistance received 
imder this subtitle (or any State or local government funds used 
to supplement such assistance) may be used to replace other State 
or local funds previously used, or designated for use, to assist 
homeless persons. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4021 
"(i) LIMITATION ON ADMINISTRATIVE EXPENSES.—No recipient 
may use more than 5 percent of a grant received under this subtitle 
for administrative purposes. 
"(j) TERMINATION OF ASSISTANCE.—If an individual or family 
who receives assistance under this subtitle (not including residents 
of an emergency shelter) from a recipient violates program require-
ments, the recipient may terminate assistance in accordance with 
a formal process established by the recipient that recognizes the 
rights of individuals receiving such assistance to due process of 
law, which may include a hearing. 
"SEC. 427. REGULATIONS. 
"Not later than the expiration of the 90-day period beginning 
on the date of the enactment of the Housing and Community 
Development Act of 1992, the Secretary shall issue interim regula-
tions to carry out this subtitle, which shall take effect upon issuance. 
The Secretary shall issue final regulations to carry out this subtitle 
after notice and opportimity for public comment regarding the 
interim regulations, pursuant to the provisions of section 553 of 
title 5, United States Code (notwithstanding subsections (aX2), 
(bXB), and (dX3) of such section). The duration of the period for 
public comment shall not be less than 60 days, and the final 
regulations shall be issued not later than the expiration of the 
60-day period beginning upon the conclusion of the comment period 
and shall take effect upon issuance. 
'^EC. 428. REPORTS TO CONGRESS. 
*The Secretary shall submit a report to the Congress annually, 
simimarizing the activities carried out under this subtitle and set-
ting forth the findings, conclusions, and recommendations of the 
Secretary as a result of the activities. The report shall be submitted 
not later than 4 months after the end of each fiscal year (except 
that, in the case of fiscal year 1993, the report shall be submitted 
not later than 6 months after the end of the fiscal year). 
"SEC. 429. AUTHORIZATION OF APPROPRIATIONS. 
"(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subtitle $204,000,000 for fiscal 
year 1993 and $212,568,000 for fiscal year 1994. 
"(b) SET-ASIDES.—Of any amounts appropriated to carry out 
this subtitle— 
"(1) not less than 25 percent shall be allocated to projects 
designed primarily to serve homeless families Math children; 
"(2) not less than 25 percent shall be allocated to projects 
designed primarily to serve homeless persons with disabilities; 
and 
"(3) not less than 10 percent shall be allocated for use 
only for providing supportive services under sections 423(a)(5) 
ana 425, not provided in conjunction with supportive housing. 
"(c) REALLOCATIONS.—If, following the receipt of applications 
for the fined fimding round under this subtitle for any fiscal year, 
any amoimt set aside for assistance pursuant to subsection (b) 
will not be required to fimd the approvable applications submitted 
for such assistance, the Secretary shall reallocate such amount 
for other assistance pursuant to this subtitle.". 
(b) TRANSITION.—^Notwithstanding the amendment made by 
subsection (a), before the date of the effectiveness of the regulations 
issued imder section 427 of the Stewart B. McKinney Homeless 
42 use 11387. 
42 use 11388. 
42 use 11389. 
42 use 11381 
note. 
106 STAT. 4022 
PUBLIC LAW 102-550—OCT. 28, 1992 
Assistance Act (as amended by subsection (a) of this section) the 
Secretary may make grants under the provisions of subtitles C 
and D of the Stewart B. McKinney Homeless Assistance Act, as 
in effect immediately before the enactment of this Act. Any grants 
made before such effective date shall be subject to the provisions 
of such subtitles. 
SEC. 1404. SAFE HAVENS FOR HOMELESS INDIVmUALS DEMONSTRA-
TION PROGRAM. 
Title IV of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11361 et seq.) is amended by inserting after subtitle 
C (as added by section 1003(a) of this Act) the following new 
subtitle: 
^Subtitle D—Safe Havens for Homeless 
Individuals Demonstration Program 
42 use 11391. 
'^EC. 431. ESTABUSHMENT OF DEMONSTRATION. 
"(a) IN GENERAL.—^The Secretary may make grants to 
applicants to demonstrate the desirability and feasibility of provid-
ing very low-cost housing, to be known as safe havens, to homeless 
persons who, at the time, are imwilling or unable to participate 
in mental health treatment programs or to receive other supportive 
services. 
"(b) PURPOSES.—^The demonstration program carried out under 
this subtitle shall demonstrate— 
"(1) whether and on what basis eligible persons choose 
to reside in safe havens; 
"(2) the extent to which, after a period of residence in 
a safe haven, residents are willing to participate in mental 
health treatment programs, substance abuse treatment, or 
other treatment programs and to move toward a more tradi-
tional form of permanent housing and the availability in the 
community of such permanent housing and treatment pro-
grams; 
"(3) whether safe havens are cost-effective in comparison 
with other alternatives for eligible persons; and 
"(4) the various ways in which safe havens may be used 
to provide accommodations and low-demand services and refer-
rals for eligible persons. 
42 use 11392. 
"SEC. 432. DEFINITIONS. 
"For piuposes of this subtitle: 
"(1) APPLieANT.—^The term 'applicant' means a nonprofit 
corporation, public nonprofit organization, State, or imit of 
general local government. 
"(2) ELIGIBLE PERSON.—^The term 'eligible person' means 
an individual who— 
"(A) is seriously mentally ill and resides primarily in 
a public or private place not designed for, or ordinarily 
used as, a regular sleeping accommodation for human 
beings, which may include occasional residence in an emer-
gency shelter; and 
(B) is currently unwilling or unable to participate 
in mental health or substance abuse treatment programs 
or to receive other supportive services. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4023 
Such term does not include a person whose sole impairment 
is substance abuse. 
"(3) FACILITY.—^The term 'facility* means a structure or 
a clearly identifiable portion of a structure that is assisted 
under this subtitle. 
"(4) LOW-DEMAND SERVICES AND REFERRALS.—The term 
low-demand services and referrals' means the provision of 
health care, mental health, substance abuse, and other support-
ive services and referrals for services in a noncoercive manner, 
which may include medication management, education, counsel-
ing, job training, and assistance in obtaining entitlement bene-
fits and in obtaining other supportive services including mental 
health treatment and substance abuse treatment. 
"(5) 
NONPROFIT 
ORGANIZATION.—The term 'nonprofit 
organization' means an organization— 
"(A) no part of the net earnings of which inures 
to the benefit of any member, founder, contributor, or 
individual; 
"(B) that has a volimtary board; 
"(C) that has an accounting system, or has designated 
a fiscal agent in accordance witii requirements established 
by tiie Secretary; aitid 
"(D) that practices nondiscrimination in the provision 
of assistance. 
"(6) OPERATING COSTS.—^The term 'operating costs' means 
expenses incurred by a recipient operating a safe haven under 
this subtitle with respect to— 
"(A) the operation of the facility, including the cost 
of 24-hour management, and maintenance, repair, and 
security; 
"(B) utilities, fiiel, fiimishings, and equipment for such 
housing; and 
"(C) other reasonable costs necessary to the operation 
of the facility, which may include appropriate outreach 
and drop-in servicers. 
"(7) RECIPIENT.—^The term 'recipient' means an applicant 
that receives assistance under this subtitle. 
"(8) SAFE HAVEN.—The term 'safe haven' means a facility— 
"(A) that provides 24-hour residence for eUgible persons 
who may reside for an unspecified duration; 
"(B) that provides private or semiprivate accommoda-
tions; 
"(C) that may provide for the common use of kitchen 
facilities, dining rooms, and bathrooms; 
"(D) that may provide supportive services to eUgible 
persons who are not residents on a drop-in basis; and 
"(E) in which overnight occupancy is limited to no 
more than 25 persons. 
"(9) SECRETARY.—^The term 'Secretary* means the Secretary 
of Housing and Urban Development. 
"(10) SERIOUSLY MENTALLY ILL.—The term 'seriously men-
tally ill' means having: a severe and persistent mental or emo-
tional impairment that seriously limits a person's abiUty to 
live independently. 
"(11) STATE.—^The term 'State' means each of the several 
States, the District of Columbia, the Commonwealth of Puerto 
59-194 O—93 
13:QL3(Pt5) 
106 STAT. 4024 
PUBLIC LAW 102-550—OCT. 28, 1992 
Rico, the Virgin Islands, Guam, American Samoa, the Northern 
Mariana Islands, and Palau. 
"(12) UNIT OF GENERAL LOCAL GOVERNMENT.—The term 
I 
'unit of general local government' has the meaning given tiie 
term in section 102(a) of the Housing and Community Develop-
ment Act of 1974. 
42 use 11393. 
•^EC. 433. PROGRAM ASSISTANCE. 
"(a) IN GENERAL.— 
"(1) ELIGIBLE AcnvmES.—The Secretary may provide 
assistance with respect to a program under this subtitle for 
the following activities: 
"(A) The construction of a structure for use in providing 
a safe haven or the acquisition, rehabilitation, or acquisi-
tion and rehabilitation of an existing structure for use 
in providing a safe haven. 
"(B) The leasing of an existing structure for use in 
providing a safe haven. 
"(C) To cover the operating costs of a safe haven. 
"(D) To cover the costs of aouninistering a safe haven 
program, not to exceed 10 percent of the amounts made 
available for activities under subparagraphs (A) through 
(C). 
"(E) Outreach activities designed to inform eligible per-
sons about and attract them to a safe haven program. 
"(F) The provision of low-demand services and referrals 
-'-•i- for residents of a safe haven, except that grants under 
this subtitle may not be used to cover more than 50 percent 
of the cost of such services and referrals. 
"(G) Other activities that further the purposes of this 
subtitle, including the modification of an existing faciliW 
to use a portion of the facility to provide with a sa^ 
haven. 
"(2) PERIOD OF ASSISTANCE.—^Assistance may be provided 
to any safe haven program for activities under subparagraphs 
(B) through (F) of paragraph (1) for a period of not more 
>
; than 5 years, except that the Secretary may, upon application 
by the recipient, provide assistance for an additional period 
„,. of time, not to exceed 5 years, subject to— 
"(A) the determination of the Secretary that the 
performance of the recipient under this subtitle is satisfac-
tory; and 
"(B) the availability of appropriations for such purpose. 
"(3) LIMIT ON AMOUNT.^The total amoimt of assistance 
provided to any recipient under this subsection may not exceed 
$400,000 in any 5-year period. 
"(b) MATCHING FUNDING.— 
"(1) IN GENERAL.—^Each recipient shall supplement a grant 
provided under this subtitle with an equal amoimt of funds 
nrom sources other than this subtitle. Each recipient shall cer-
tify to the Secretary that it has complied with this paragraph, 
and shall include with the certification a description of the 
sources and amounts of such supplemental fimds. 
"(2) CALCULATION OF AMOUNTS.—In calculating the amount 
of supplemental funds required under paragraph (1), a recipient 
may include any funds derived from another source, the value 
of any lease on a building, any salary paid to stajff to carry 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4025 
out the program of the recipient, and the value of the time 
and services contributed by volunteers, at a rate determined 
by the Seoretary, to carry out the program of the recipient. 
"SEC. 434. PROGRAM REQUIREMENTS. 
42 USC 11394. 
"(a) APPLICATIONS.—^Applications for assistcuice under this sub-
title shall be submitted by ;an applicant in such form and in accord-
ance with such procedures as the Secretary shall establish, and 
such applications shall contain at a minimum— 
"(1) a description of the proposed faciHty; 
"(2) a description of the nimiber and characteristics of 
the eligible persons expected to occupy the safe haven; 
"(3) a plan for identifying and selecting eligible persons 
to participate; 
"(4) a program plan, containing a description of the 
method— 
"(A) of operation of the facility, including staffing plans 
and facility rules; 
"(B) by which the applicant will secure supportive serv-
ices for residents of the safe haven; 
"(C) by which the applicant will monitor the willingness 
of residents to engage in treatment programs and other 
supportive services; 
"(D) by which access to supportive services will be 
secured for residents willing to use them; 
"(E) by which access to permanent housing with appro-
priate services, such as the Shelter Plus Care program 
under subtitle F, will be sought after residents are sta-
bilized; and 
"(F) by which the applicant will conduct outreach 
activities to facilitate the entrance of eligible persons into 
the safe haven; 
"(5) a plan to ensure that adequate security precautions 
are taken to make the facility safe for the residents; 
"(6) an estimate of program costs; 
"(7) a description of the resources that are expected to 
be made available in accordance with section 433(b); 
"(8) assurances satisfactory to the Secretary that the facility 
will have 24-hour, on-site management, if practicable; 
"(9) assurances satisfactory to the Secretary that the facility 
will be operated for the purpose specified in the application 
for each year in which assistance is provided imder this subtitle; 
"(10) a certification by the public official responsible for 
submitting the comprehensive housing affordabihty strategy 
under section 105 of the Cranston-Gonzalez National Affordable 
Housing Act for the State or unit of general local government 
within which the facility is located that the proposed activities 
are consistent with the approved housing strategy for such 
jurisdiction; 
"(11) a certification that the applicant will comply with 
the requirements of the Fair Housing Act, title VI of the Civil 
Rights Act of 1964, section 504 of the Rehabilitation Act of 
1973, and the Age Discrimination Act of 1975, and will affirma-
tively further fair housing; 
(12) a plan for program evaluation based on information 
that is collected on a periodic basis regarding the characteristics 
of the residents, including their movement in and out of the 
106 STAT. 4026 
PUBLIC LAW 102-550—OCT. 28, 1992 
safe haven, their willingness to use low-demand services and 
referrals, the availability and quality of services used, and 
the movement of residents toward a more traditional form 
of permanent housing after a period of residency in ttie safe 
haven; and 
''(13) such other information as the Secretary may require. 
*
*
(
b
) SITE CONTROL.—^The Secretary shall require that an 
applicant furnish reasonable assurances that the applicant will 
have control of a site for the proposed facility not later than 1 
year after notification of an award of assistance under this subtitle. 
If an applicant fails to obtain control of the site within this period, 
the grant shall be recaptured by the Secretary and reallocated 
for use under this subtitle. 
"(c) SELECTION CRITERIA.—The Secretary shall establish selec-
tion criteria for selecting applicants to receive assistance under 
this subtitle pursuant to a national competition, which shall 
include— 
"(1) the extent to which the applicant demonstrates the 
ability to develop and operate a safe naven; 
"(2) the extent to which there is a need for a safe haven 
in the jurisdiction in which the facility will be located; 
"(3) the extent to which the program would link eligible 
persons to permanent housing and supportive services after 
stabilization in a safe haven; 
"(4) the cost-effectiveness of the proposed program; 
"(5) providing for geographical diversity among applicants 
selected to receive assistance; 
"(6) the extent to which the safe haven would meet the 
need of the eligible persons proposed to be served by the safe 
haven; and 
"(7) such other factors as the Secretary determines to be 
appropriate for purposes of carrying out tne program estab-
lished under this subtitle in an effective and emcient manner. 
*
*
(
d
) REQUIRED AGREEMENTS.—^The Secretary may not provide 
assistance under this subtitle for any safe haven program unless 
the applicant agrees— 
"(1) to develop and operate the proposed facility as a safe 
haven in accordance with the provisions of this subtitle; 
"(2) to ensure that the facility meets any standards of 
habitability established bv the Secretary; 
"(3) to provide low-demand services and referrals for the 
residents of the safe haven; 
"(4) to prohibit the use of illegal drugs and alcohol in 
the facility; 
"(5) to ensure that adequate security precautions are taken 
to make the facility safe for the residents; 
"(6) not to establish limitations on the duration of resi-
dency; 
"(7) not to require participation in low-demand services 
and referrals as a condition of occupancy; 
"(8) to monitor and report to the Secretary on progress 
in carrying out the safe haven program; 
"(9) to the maximum extent practicable, to involve eligible 
persons, through employment, volunteer services, or otherwise, 
m renovating, maintaining, and operating facilities assisted 
under this subtitle and in providing services assisted under 
tills subtitle; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4027 
**(10) to provide for the participation of not less than 1 
homeless individual or former homeless individual on the board 
of directors or other equivalent policymaking entity of such 
recipient (in accordance with regulations that the Secretary 
shall issue), to the extent that such entity considers and makes 
policies and decisions regarding any facility or services assisted 
under this subtitle, or to otherwise provide for the consultation 
and participation of such an individual in considering and 
making such policies and decisions; and 
"(11) to comply with such other terms and conditions as 
the Secretary may establish for purposes of carrying out the 
program established under this subtitle in an effective and 
efficient manner. 
The Secretary may waive the applicability of the requirement under 
paragraph (10) for an applicant that is unable to meet such require-
ment, if the applicant agrees to otherwise consult with homeless 
or formerly homeless individuals in considering and making such 
policies and decisions. 
"SEC. 435. OCCUPANCY CHARGE. 
"Each eligible person who resides in a facility assisted under 
this subtitle shall pay an occupancy charge in an amount deter-
mined by the recipient, but not to exceed the amount determined 
under section 3(a) of the United States Housing Act of 1937. The 
occupancy charge may be phased in or reduced based on the type 
of living accommodations provided. The recipient may waive occu-
pancy charges for limited periods of time for residents unwilling 
or unable to pay them. Occupancy charges paid may be reserved 
to assist residents in moving to a more traditional form of perma-
nent housing. 
"SEC. 436. TERMINATION OF ASSISTANCE. 
"If an eligible person who resides in a safe haven or who 
receives low-demand services or referrals endangers the safety, 
welfare, or health of other residents, or repeatedly violates a condi-
tion of occupancy contained in the rules for the safe haven (as 
set forth in the application submitted under this subtitle), the 
recipient may terminate such residency or assistance in accordance 
with a formal process established by the rules for the safe haven, 
which may include a hearing. 
"SEC. 437. EVALUATION AND REPORT. 
'The Secretary shall conduct an evaluation of the safe haven 
demonstration program under this subtitle and shall submit a 
report to the Congress, not later than December 31, 1994, which 
shall set forth the findings of the Secretary as a result of the 
evaluation. 
"SEC. 438. REGULATIONS. 
"(a) IN GENERAL.—^The Secretary shall, by notice published 
in the Federal Register, establish such requirements as may be 
necessary to carry out the amendments made by this subtitle, 
"(b) CONSULTATION.—In establishing requirements to carry out 
the provisions of this subtitle, and in considering applications under 
this subtitle, the Secretary shall consult with officials of the appro-
priate agencies of the Department of Health and Human Services 
and with representative provider and public interest groups. 
"(c) ELIGIBILITY FOR SSI AND MEDICAID.— 
42 use 11395. 
42 use 11396. 
42 use 11397. 
Federal 
Register, 
publication. 
42 use 11398. 
106 STAT. 4028 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(1) SUPPLEMENTAL SECURITY INCOME.—All provisions of 
the Supplemental Security Income program under title XVI 
of the Social Securihr Act and of State programs in 
supplementation thereof shall apply to participants in the safe 
havens demonstration program under this subtitle, except that 
no individual Uving in a safe haven shall— 
"(A) be considered an inmate of a public institution 
(as provided in section 1611(eXlXA) of sucn Act); or 
"(B) have benefits under such title XVI reduced or 
terminated because of the receipt of support and mainte-
nance (as provided in section 1612(aX2)(A) of such Act), 
to the extent such support and maintenance is received 
as a result of participation in the safe havens demonstra-
tion program. 
"(2) MEDICAID.—A safe haven shall not be considered a 
hospital, nursing facility, institution for mental disease as 
defined under section 1905(i) of the Social Security Act, or 
anv other inpatient facility, for purposes of the program under 
title XIX 01 such Act, and individuals shall not be denied 
eligibility for medicaid because of residency in such residence. 
42 use 11399. 
'^EC. 439. AUTHORIZATION OF APPROPRIATIONS. 
'There are authorized to be appropriated to carry out this 
subtitle $62,000,000 for fiscal year 1993 and $64,604,000 for fiscal 
year 1994.". 
SEC. 1405. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY 
DWELLINGS. 
(a) BUDGET AUTHORITY.—Section 441(a) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11401(a)) is amended 
to read as follows: 
"(a) INCREASE IN BUDGET AUTHORITY.—The budget authority 
available under section 5(c) of the United States Housing Act of 
1937 for assistance under section 8(eX2) of such Act is authorized 
to be increased by $105,000,000 on or after October 1, 1992, and 
by $109,410,000 on or after October 1,1993.". 
(b) ELIGIBILITY OF NONPROFIT ORGANIZATIONS.—Section 441 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11401) is amended— 
(1) in subsection (b), by inserting before the period at 
the end the following: ", and except that the Secretary may 
provide amounts available imder this section to private non-
profit organizations that submit applications for such assistance 
that are approved by the Secretaiy^; 
(2) in subsection (f), b^ striking "public housing agency" 
each place it appears and inserting "approved applicant ; and 
(3) by adding at the end the following new subsection: 
"(j) DEFINITIONS.—For purposes of this section— 
"(1) the term 'appUcant' means a public housing agency, 
Indian housing authority, or private nonprofit organization that 
applies for assistance under this section; and 
"(2) the term 'private nonprofit organization' means an 
organization— 
"(A) no part of the net earnings of which inures to 
the benefit of any member, founder, contributor, or individ-
ual; 
"(B) that has a voluntary board; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4029 
"(C) that has an accounting system, or has designated 
a fiscal agent in accordance with requirements established 
by the Seoretjury; and 
"(D) that practices nondiscrimination in the provision 
of assistance.". 
(c) EMPLOYMENT OF HOMELESS INDIVIDUALS.—Section 441(c) 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11401(c)) is amended— 
(1) in paragraph (3), by striking "and" at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting "; and"; 
(3) by inserting after paragraph (4) the following new para-
graph: 
"(5) assurances satisfactory to the Secretary that the 
applicant, to the maximum extent practicable, will involve 
homeless individuals and families, through employment, volun-
teer services, or otherwise, in rehabilitating and operating facili-
ties assisted under this section and in providing services for 
occupcuits of such facilities.". 
(d) PARTICIPATION O
F HOMELESS INDIVIDUALS A
N
D TERMINATION 
O
F AissiSTANCE.—Section 441 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11401) is amended by adding aft;er sub-
section (g) the following new subsections: 
"(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—The Secretary Regulations. 
shall, by regulation, require each approved applicant receiving 
assistance imder this section that is not a public housing agency 
or Indian housing authority to provide for the participation of 
not less than one homeless individual or former homeless individual 
on the board of directors or other equivident policymaking entity 
of such applicant, to the extent that such entity considers and 
makes poUcies and decisions regarding the rehabilitation of any 
housing with assistance under this section. The Secretary may 
grant waivers to approved applicants unable to meet the require-
ments under the preceding sentence if the applicant agrees to 
, 
otherwise consult with homeless or formerly homeless individuals 
in considering and making such policies and decisions. 
**(i) TERMINATION OF ASSISTANCE.—If an individual or family 
who receives assistance under this section violates program require-
ments, the recipient of amounts made available under this section 
may terminate assistance in accordance with a formal process estab-
lished by the recipient that recognizes the rights of individuals 
receiving such assistance to due process of law.". 
(e) REPORT.—^The Secretary of Housing and Urban Development 
shall submit a report to the Congress, not later than the expiration 
of the 180-day period beginning on the date of the enactment 
of this Act, describing the extent to which amoimts appropriated 
to provide assistance under section 441 of the Stewart B. McKinney 
Homeless Assistance Act since the enactment of such section have 
been obligated and expended. 
SEC. 1406. SHELTER PLUS CARE PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 459 of 
the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11403h) 
is amended— 
(1) by striking subsection (a) and inserting the following 
new subsection: 
106 STAT. 4030 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(a) IN GENERAL.—For purposes of the housing programs under 
this subtitle, there are authorized to be appropriated $266,550,000 
for fiscal year 1993 and $277,745,100 for fiscal year 1994. Of any 
amount appropriated in any fiscal year to carry out this subtitle— 
"(1) not less than 10 percent shall be available only for 
carrying out part II of this subtitle; 
''(2) not less than 10 percent shall be available only for 
carrying out part III of this subtitle; 
"(3) not less than 10 percent shall be available only for 
carrying out part IV of this subtitle; and 
"(4) not less than 10 percent shall be available only for 
carrying out part V of this subtitle.**; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as subsection (b). 
(b) PARTICIPATION OF HOMELESS INDIVIDUALS.—Section 455 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11403d) is amended by adding at the end the following new sub-
section: 
Regulations. 
"(c) PARTICIPATION OF HOMELESS INDIVIDUALS.—The Secretary 
shall, by regulation, require each recipient to provide for the con-
sultation and participation of not less than one homeless individual 
or former homeless individual on the board of directors or other 
equivalent polic3anaking entity of the recipient, to the extent that 
such entity considers and m^es policies £md decisions regarding 
any housing assisted imder this subtitle or services for such hous-
ing. The Secretary may grant waivers to recipients unable to meet 
the requirement under the preceding sentence if the recipient agrees 
to otherwise consult with homeless or formerly homeless individuals 
in considering and making such policies and decisions. 
(c) EMPLOYMENT OF HOMELESS INDIVIDUALS.—Section 456 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11403e) is amended— 
(1) in paragraph (3), by striking ''and*' at the end; 
* 
(2) in paragraph (4), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following new paragraph: 
"(5) to the maximum extent practicable, to involve homeless 
individuals and families, through employment volunteer serv-
ices, or otherwise, in constructing or rehabilitating housing 
assisted under this subtitle and in providing services required 
under this subtitle.". 
(d) REDESIGNATION A
N
D AMENDMENT OF PART II PROVISIONS.— 
Subtitle F of title IV of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11403 et seq.) is amended as follows: 
(1) PART II HEADING.—^By amending the heading for part 
II to read as follows: 
42 use 11405-
11406c. 
42 use 11404. 
"PART II—TENANT-BASED RENTAL 
ASSISTANCE" 
(2) PARTS II AND IV.—By striking parts III and IV. 
(3) PURPOSE.—By striking section 461 and inserting the 
following new section: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4031 
•^EC. 471. AUTHORITY. 
The Secretary may use amounts made available under section 
463 to provide tenant-based rental housing assistance for eligible 
persons in accordance with this part.". 
(4) HOUSING ASSISTANCE.—By redesignating section 462 
as section 472 and amending such section by sti^ng "Where" 
and inserting the foUowmg: "An eligible person on behalf of 
whom assistance is provided under this part shall select the 
unit in which such person will live using rental assistance 
under this part; except that where". 
(5) AMOUNT OF ASSISTANCE.—By redesignating section 463 
as section 473 and amending such section by striking the last 
sentence. 
(e) TRANSFER, REDESIGNATION, AND AMENDMENT OF GENERAL 
PROVISIONS.—Subtitle F of title IV of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11403 et seq.) is amended 
as follows: 
(1) TERMINATION OF ASSISTANCE.—By redesignating section 
457 as section 461. 
(2) DEFINITIONS.—^By redesignating section 458 as section 
462 and amending such section— 
(A) by striking paragraph (2) and inserting the follow-
ing new paragraph: 
"(2) The term 'appUcant' means a State, unit of general 
local government, Indian tribe, or pubUc housing agency."; and 
(B) in paragraph (5), by inserting before the period 
at the end ", and includes community mental health centers 
established as public nonprofit organizations". 
(3) AUTHORIZATION OF APPROPRIATIONS.—By redesignating 
section 459 (as amended by subsection (a) of this section) as 
section 463. 
(4) HOUSING STANDARDS AND RENT REASONABLENESS.—By 
redesignating section 464 as section 457, transferring and 
inserting such section after section 456, and amending sub-
section (aXD of such section by striking "(or if no such agency 
exists in the applicable area, an entity selected by the Sec-
retary)". 
(5) TENANT RENT AND ADMINISTRATIVE PEES.—By transfer-
ring and inserting sections 465 and 466 after section 457 (as 
so redesignated by paragraph (4) of this subsection) and 
redesignating such sections as sections 458 and 459, respec-
tively. 
(6) OCCUPANCY.—By inserting after section 459 (as so 
redesignated by paragraph (5) of this subsection) the following 
new section: 
*«£€. 460. OCCUPANCY. 
"(a) 
OCCUPANCY AGREEMENT.—^The occupancy agreement 
between a tenant and an owner of a dwelling unit assisted under 
this subtitle shall be for at least one month. 
"(b) VACANCY PAYMENTS.—^If an eUgible person vacates a dwell-
ing unit assisted under this subtitle before the expiration of the 
occupancy agreement, no assistance payment may be made with 
respect to the unit after the month that follows the month during 
which the unit was vacated, unless it is occupied by another eligible 
person.". 
42 use 11404. 
42 u s e 11404a. 
42 u s e 11404b. 
42 u s e 11403f. 
42 u s e 11403g. 
42 u s e 11403h. 
42 u s e 11404c, 
11403e-l. 
42 u s e 11404d, 
11404e, 
11403e-2, 
11403e-3. 
42 use 
11403e-4. 
106 STAT. 4032 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 11405. 
Contracts. 
42 u s e 11405a. 
(f) PROJECT- AND SPONSOR-BASED RENTAL ASSISTANCE AND SIN-
GLE ROOM OCCUPANCY DWELLINGS.—Subtitle F of title IV of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11403 
et seq.), as amended by the preceding provisions of this section, 
is further amended by inserting at the end the following new 
parts: 
"PART m—PROJECT-BASED RENTAL 
ASSISTANCE 
'«EC. 476. AUTHORITY. 
The Secretary may use amounts made available under section 
463 to provide project-based rental housing assistance for eligible 
persons in accordance with this part. 
*«£€. 477. HOUSING ASSISTANCE. 
"Assistance under this part shall be provided pursuant to a 
contract between the recipient and an owner of an existing struc-
ture. The contract shall provide that rental assistance pajrments 
shall be made to the owner and that the units in the structure 
shall be occupied by eligible persons for not less than the term 
of the contract. 
42 use 11405b. 
^^EC. 478. TERM OF CONTRACT AND AMOUNT OF ASSISTANCE. 
**(a) TERM OF CONTRACT.—^Each contract with a recipient for 
assistance under this part shall be for a term of 5 years, and 
the owner shall have an option to renew the assistance for an 
additional 5-year term, subject to the availability of amounts pro-
vided in appropriation Acts; except that if an expenditure of at 
least $3,000 for each unit (including its prorated share of work 
on common areas or systems) is required to make the structure 
decent, safe, and sanitary, and the owner agrees to carry out the 
rehabilitation with resources other than assistance under this sub-
title within 12 months of notification of grant approval, the contract 
shall be for a term of 10 years. 
"(b) AMOUNT OF ASSISTANCE.—Each contract shall provide that 
the recipient shall receive ag^egate amounts not to exceed the 
appropriate existing housing fair market rental under section 8(cXl) 
of the United States Housing Act of 1937 in effect at the time 
the application is approved. Any amounts not needed for a year 
may be used to increase the cunount available in subsequent years. 
**PART IV--SPONSOR-BASED RENTAL 
ASSISTANCE 
42 u s e 11406. 
Contracts. 
42 u s e 11406a. 
•^EC. 481. AUTHORITY. 
The Secretary may use amounts made available under section 
463 to provide sponsor-based rental assistance for eligible persons 
in accordance with this part. 
•^EC. 482. HOUSING ASSISTANCE. 
"Assistance imder this part shall be provided pursuant to a 
contract between the recipient and a private nonprofit sponsor 
that owns or leases dwelling units. The contract shall provide 
that rental assistance payments shall be made-to the sponsor and 
that such assisted units shall be occupied by eUgible persons. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4033 
'^EC. 483. TERM OF CONTRACT AND AMOUNT OF ASSISTANCE. 
**(a) TERM OF CONTRACT.—^The contract with a recipient of 
assistance under this part shall be for a term of 5 years. 
"(b) AMOUNT OF ASSISTANCE.—Each contract shall provide that 
the recipient shall receive aggregate amounts not to exceed the 
appropriate existing housing fair market rental under section 8(cXl) 
of the United States Housing Act of 1937 in effect at the time 
the application is approved. Any amoimts not needed for a year 
may be used to increase the amoimt available in subsequent years. 
"PART V—SECTION 8 MODERATE REHABILITA-
TION ASSISTANCE FOR SINGLE-ROOM OCCU-
PANCY DWELLINGS 
42 u s e 11406b. 
*nSEC. 486. AUTHORITY. 
The Secretary may use amoimts made available under section 
463 in connection with the moderate rehabilitation of single room 
occupancy housing described in section 8(n) of the United States 
Housing Act of 1937 for occupancy by eUgible persons in accordance 
with this part. Amounts available under section 463 may be used 
in connection with the moderate rehabilitation of efiEiciency units 
if the building owner agrees to pay the additional cost of rehabilitat-
ing and operating the efficiency imits. 
'9EC. 
487. 
FIRE 
AND 
SAFETY 
IMPROVEMENTS. 
"Each contract for housing assistance payments entered into 
under this part shall require the installation of a sprinkler system 
that protects all major spaces, hard-wired smoke detectors, and 
any other fire safety improvements as may be required by State 
or local law. For purposes of this section, the term 'msyor spaces' 
means hallways, large common areas, and other areas specified 
in local fire, building, or safety codes. 
'nSEC. 488. CONTRACT REQUIREMENTS. 
"Each contract for annual contributions entered into by the 
Secretary with a public housing agency to obligate the authority 
made available iinder section 463 for use under this part shall— 
"(1) commit the Secretary to make the authority available 
to the public housing agency for an aggregate period of 10 
years, and require that any amendments increasing the author-
ity shall be available for the remainder of such 10-year period; 
"(2) provide the Secretary with the option to renew the 
contract for an additional period of 10 years, subject to the 
availability of authority; and 
"(3) provide that, notwithstanding any other provision of 
law, first priority for occupancy of housing rehabilitated under 
this part shall be given to homeless persons.". 
(g) TECHNICAL AND CONFORMING AMENDMENTS.—Subtitle F of 
title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11403 et seq.), as amended by the preceding provisions 
of this section, is further amended— 
(1) by striking the heading for part I and inserting the 
following new heading: 
42 use 11407. 
42 u s e 11407a. 
42 use 11407b. 
42 u s e prec. 
11403. 
106 STAT. 4034 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 11403a. 
42 use 11403c. 
Inter-
governmental 
relations. 
"PART I—GENERAL REQUIREMENTS"; 
(2) in section 452(a), by striking "and IV^ and inserting 
**IV,and\r;and 
(3) in section 454(b)— 
(A) in paragraph (1), by striking "or TV" and inserting 
''IV,or\r; 
(B) in paragraph (8), by striking "or TV and inserting 
"IV,orV^; 
(C) in paragraph (lOXA), by inserting *
*
, or III" after 
"part IF; and 
(D) in paragraph (11)— 
(i) by striking "part III" and inserting "part V"; 
and 
(ii) by striking "rehabilitation and". 
,, 
SEC. 1407. FHA SINGLE FAMILY PROPERTY DISPOSITION. 
(a) 30-DAY MARKETING PERIOD.—Except as provided in sub-
section (b), in canying out the program for disposition of single 
familv properties acquired by the Department of Housing and Urban 
Development for use by the homeless under subpart E of part 
291 of title 24, Code of Federal Regulations, the Secretary of Hous-
ing and Urban Development may not make any eligible property 
available for lease under such program that has not been listed 
and made generally available for sale by the Secretary for a period 
of at least 30 days. 
(b) EXCEPTION.—^With respect to any area for which the Sec-
retary determines that there will not be a sufficient quantity of 
decent, safe, and sanitaiy affordable housing available for use under 
the program referred to in subsection (a) if eligible properties located 
in the area are made generally available for the 30-day period 
under subsection (a), the Secretary shall reserve for disposition 
under such program not more than 10 percent of the total mmiber 
of eligible properties located in the area and shall not market 
such properties as provided imder subsection (a). The Secretary 
shall consult with the unit of g^eneral local government for an 
area in determining which properties should be reserved for disposi-
tion imder this subsection. 
(c) STATE A
N
D LOCAL TAXES.— 
(1) 
REQUIREMENT 
TO 
PROVIDE 
INFORMATION 
UPON 
REQUEST.—In carrying out the program referred to in subsection 
(a), the Secretary of Housing and Urban Development shall 
provide the information described in paragraph (2) to any lessee 
or applicant imder the program who requests such information. 
(2) CONTENT.—^The information referred in paragraph (1) 
shall identify and describe any exemptions or reductions relat-
ing to payment of property taxes under State and local laws 
(for the jurisdictions for which the lessee or applicant requests 
such information) that may be appUcable to lessees or 
applicants, or to properties leased, imder such program. 
(3) EXEMPTION FROM ESCROW REQUIREMENT.—TO the extent 
any lessee of a property under the program referred to in 
subsection (a) is provided an exemption from any requirement 
to pay State or local taxes, or a reduction in the amount 
of any such taxes, the Secretary may not require the lessee 
to pay or deposit in any escrow account amounts for the pay-
ment of such taxes. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4035 
SEC. 1408. RURAL HOMELESSNESS GRANT PROGRAM. 
Title IV of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11361 et seq.) is amended by adding at the end the 
following new subtitle: 
^Subtitle G—^Rural Homeless Housing 
Assistance 
"SEC. 491. RURAL HOMELESSNESS GRANT PROGRAM. 
42 USC 11408. 
"(a) ESTABLISHMENT.—The Secretary of Housing and Urban 
Development shall establish and carry out a rural homelessness 
grant program. In carrying out the program, the Secretary may 
award grants to eligible organizations in order to pay for the Federal 
share of the cost of— 
"(1) assisting programs providing direct emergency assist-
ance to homeless individuals and families; 
"(2) providing homelessness prevention assistance 
to 
individuals and families at risk of becoming homeless; and 
"(3) assisting individuals and families in obtaining access 
to permanent housing and supportive services. 
"(b) USE OF FUNDS.— 
"(1) IN GENERAL.—^An eligible organization may use a grant 
awarded under subsection (a) to provide, in rural areas— 
"(A) rent, mortgage, or utility assistance after 2 months 
of nonpayment in order to prevent eviction, foreclosure, 
or loss of utility service; 
"(B) security deposits, rent for the first month of resi-
dence at a new location, and relocation assistance; 
"(C) short-term emergency lodging in motels or shel-
ters, either directly or through vouchers; 
"(D) transitional housing; 
"(E) rehabilitation and repairs such as insulation, win-
dow repair, door repair, roof repair, and repairs that are 
necessary to make premises habitable; 
"(F) development of comprehensive and coordinated 
support services that use and supplement, as needed, 
commiinity networks of services, including— 
"(i) outreach services to reach eligible recipients; 
"(ii) case management; 
"(iii) housing counseling; 
"(iv) budgeting; 
"(v) job training and placement; 
"(vi) primary health care; 
"(vii) mental health services; 
"(viii) substance abuse treatment; 
"(ix) child care; 
"(x) transportation; 
"(xi) emergency food and clothing; 
"(xii) family violence services; 
"(xiii) education services; 
"(xiv) moving services; 
"(xv) entitlement assistance; and 
"(xvi) referrals to veterans services and legal serv-
ices; and 
106 STAT. 4036 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(G) costs associated with making use of Federal inven-
tory property programs to house homeless families, includ-
ing tne program established under title V of the Stewart 
B. McKinney Homeless Assistance Act and the Single Fam-
ily Property Disposition Program established pursuant to 
section 204(g) of the National Housing Act. 
"(2) CAPACITY BUILDING ACTivrnES.—5»Iot more than 20 per-
cent of the funds appropriated under subsection (IXD for a 
\ 
fiscal year may be used by eligible organizations for capacity 
building activities, including payment of operating costs and 
staff retention. 
**(c) AWARD OF GRANTS.— 
"(1) 
COMMUNITIES WITH 
POPULATIONS OF 
LESS 
THAN 
10,000.— 
"(A) SET ASIDE.—In awarding grants under subsection 
(a) for a fiscal year, the Secretary shall make available 
not less than 50 percent of the funds appropriated under 
subsection (IXD lor the fiscal year for grants to eli^ble 
organizations serving communities that nave populations 
of less than 10,000. 
"(B) PRIORITY WITHIN SET ASIDE.—^In awarding grants 
in accordance with subparagraph (A), the Secretary shall 
give priority to eligible organizations serving communities 
with populations of less than 5,000. 
"(2) COMMUNITIES WITHOUT SIGNIFICANT FEDERAL ASSIST-
ANCE.—In awarding grants under subsection (a), including 
grants awarded in accordance with paragraph (1), the Secretary 
shall give priority to eligible organizations serving communities 
not currently receiving significant Federal assistance under 
this Act. 
"(3) STATE LIMIT.—In awarding grants under subsection 
(a) for a fiscal year, the Secretary shall not award to eligible 
organizations within a State an aggregate sum of more than 
10 percent of the funds appropriated under subsection (IXD, 
for the fiscal year. 
"(d) APPLICATION.—In order to be eligible to receive a grant 
under subsection (a), an organization shall submit an application 
to the Secretary at such time, in such manner, and containing 
such information as the Secretary may require. The application 
shall include, at a minimum— 
"(1) a description of the target population and geographic 
area to be served; 
"(2) a description of the types of assistance to be provided; 
"(3) an assurance that the assistance to be provided is 
closely related to the identified needs of the target population; 
"(4) a description of the existing assistance available to 
the target population, including Federal, State, and local pro-
grams, and a description of the manner in which the organiza-
tion will coordinate with and expand existing assistance or 
provide assistance not available in the immediate area; 
"(5) an agreement by the organization that the organization 
will collect data on the projects conducted by the organization, 
including {assistance provided, number and characteristics of 
persons served, and causes of homelessness for persons served; 
and 
"(6) an agreement by the organization that, to the maxi-
mimi extent practicable, the organization will involve homeless 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4037 
individuals and families through emplo3rment, volunteer serv-
ices, and otherwise, in providing, operating, and rehabilitating 
housing assisted under this section and in providing services 
assisted under this section and services for occupants of housing 
assisted under this section. 
"(e) ELIGIBLE ORGANIZATIONS.—Organizations eligible to receive 
a grant under subsection (a) shall include private nonprofit entities, 
Indian tribes (as such term is defined in section 102(a) of the 
Housing and Clommimity Development Act of 1974), and county 
and local governments. 
"(f) FEDERAL SHARE.— 
"(1) IN GENERAL.—The Federal share of the costs of provid-
ing assistance under this section shall be 75 percent. 
"(2) NON-FEDERAL SHARE.—The non-Federal share of the 
cost of providing the assistance shall be in cash or in kind, 
fairly evaluated, including plant, equipment, stafiT services, or 
services delivered by volunteers. 
"(g) PARTICIPATION OF HOMELESS INDIVIDUALS.—The Secretary Regulations. 
shall, by regulation, require each eligible organization receiving 
a grant imder this section to provide for the participation of not 
less than 1 homeless individual or former homeless individual on 
the board of directors or other equivalent policy making entity 
of the recipient, to the extent that such entity considers and makes 
policies and decisions regarding any housing, services, or other 
assistance of the eligible organization receiving the grant under 
this section. The Secretary may grant wsdvers to recipients unable 
to meet the requirement vmder the preceding sentence if the recipi-
ent agrees to otherwise consult with homeless or formerly homeless 
individuals in considering and making such policies and decisions. 
"(h) EVALUATION.— 
"(1) IN GENERAL.—^The Secretary shall conduct an evalua-
tion of the program to— 
< "(A) determine the effectiveness of the program in 
providing housing and other assistance to homeless persons 
in the area served; and 
"(B) determine the types of assistance needed to 
address homelessness in rural areas. 
"(2) REPORT.—^The Secretary shall submit to Congress, not 
later than 18 months after the date on which the Secretary 
first makes grants under the program, the evaluation of the 
program conducted under paragraph (1), including rec-
ommendations for any Federal administrative or legislative 
changes that may be necessary to improve the ability of rural 
communities to prevent and respond to homelessness. 
"(i) TECHNICAL ASSISTANCE.—The Secretary shall provide tech-
nical assistance to eligible organizations in developing programs 
in accordance with this section, and in gaining access to other 
Federal resources that may be used to assist homeless persons 
in niral areas. Such assistance may be provided through regional 
workshops, and may be provided directly or through grants to, 
or contracts with, nongovernmental entities. 
"(j) TERMINATION OF ASSISTANCE.—If an individual or family 
who receives assistance under this section violates requirements 
of the assistance program provided by the organization receiving 
a grant under this section, the organization may terminate assist-
ance in accordance with a formal process established by the 
106 STAT. 4038 
PUBLIC LAW 102-550—OCT. 28, 1992 
42 use 11361 
note. 
42 use 11361 
note. 
42 use 11361 
et seq. 
organization that recognizes the rights of individuals receiving such 
assistance to due process of law, which may include a heciring. 
"(k) DEFINITIONS.— 
"For purposes of this section: 
"(1) PROGRAM.—^The term 'program* means the rural 
homelessness grant program established under this section. 
"(2) RURAL AREA; RURAL COMMUNITY.—The terms 'rural 
area* and 'rural communit3r' mean— 
"(A) any area or commmiity, respectively, no part of 
which is witnin an area designated as a standard metropoli-
tan statistical area by the Office of Management and 
Budget; or 
"(B) any area or community, respectively, that is— 
"(i) within an area designated as a metropolitan 
statistical area or considered as part of a metropolitan 
statistical area; and 
"(ii) located in a rural census tract. 
"(3) SECRETARY.—^The term 'Secretary* means the Secretary 
of Housing and Urban Development. 
"(1) AUTHORIZATION O
F APPROPRIATIONS.— 
"(1) IN GENERAL.—^There are authorized to be appropriated 
to carry out this section $30,000,000 for fiscal year 1993 and 
$31,260,000 for 
fiscal 
year 1994. 
"(2) AVAILABILITY.—Any amount paid to a grant recipient 
for a fiscal year that remains unobligated at Uie end of the 
year shcQl remain available to the recipient for the purposes 
for which the payment was made for the next fiscal year. 
The Secretary shall take such action as may be necessary 
to recover any amount not obligated by the recipient at the 
end of the second fiscal year, andshall redistribute the amount 
to another eligible organization.**. 
SEC. 1409. EVALUATION OF PROGRAMS. 
(a) IN GENERAL.—^The Secretai^ of Housing and Urban Develop-
ment shall conduct a comprehensive review and evaluation of the 
effectiveness of each program under title IV of the Stewart B. 
McKinney Homeless Assistance Act. In conducting the review, the 
Secretary shall examine procedures of the Department in carrying 
out such programs, the procedures of recipients of assistance under 
such programs in canying out such programs, and the efiects 
and benefits of such programs; shall survey homeless individuals 
and families assisted imder each program in various jurisdictions 
receiving assistance under each program; shall determine whether 
such programs are fiilfiHing the purposes for which they were 
estabUshed; and shall evaluate the usefiilness and effectiveness 
of such programs. 
(b) REPORT.—^Not later than the expiration of the 2-year period 
beginning on the date of the enactment of this Act, the Seo^tary 
shall submit a report to the Congress describing the results of 
the review and evaluation conducted under subsection (a). 
SEC. 1410. EXTENSION OF ORIGINAL MCKINNEY ACT HOUSING PRO-
GRAMS. 
The Cranston-Gonzalez National Affordable Housing Act is 
amended by striking sections 821 and 823 (42 U.S.C. 11361 note). 
The amendment made by such section 821 of such Act shall not 
take effect. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4039 
SEC. 1411. CONSULTATION 
AND 
REPORT 
REGARDING 
USE 
OF 
42 USC11411 
NATIONAL GUARD FACILITIES AS OVERNIGHT SHELTERS 
note. 
FOR HOMELESS INDIVIDUALS. 
(a) USE OF AVAILABLE SPACE AT NATIONAL GUARD FACILITIES.— 
The Secretary of Housing and Urban Development shall consult 
with the chief executive officers of the States and the Secretary 
of Defense to determine the availability of space at National Guard 
facilities for use by homeless organizations in providing overnight 
shelter for homeless persons and families. The Secretary of Housing 
and Urban Development shall determine the availability of only 
such space that can be used for shelter purposes during periods 
it is not actively being used for National Guard purposes. The 
Secretary of Housing and Urban Development shall also determine 
the availability of incidental services at such facilities, including 
utilities, bedding, security, transportation, renovation of facilities, 
minor repairs undertaken specifically to make available space in 
a facility suitable for use as an overnight shelter for homeless 
individuals, and property liability insurance. 
(b) LIMITATIONS.—In consultations imder this section, the Sec-
retary of Housing and Urban Development shall determine— 
(1) the number and capacity of such facilities that may 
be made available for shelters for homeless persons and families 
without adversely affecting the military or emergency service 
preparedness of the State or the United States; and 
(2) whether any available space is suitable for use as an 
overnight shelter for homeless individuals or can, with minor 
repairs, be made suitable for that use. 
(c) REPORT.—^The Secretary of Housing and Urban Development 
shall submit to the Congress, not later than the expiration of 
the 1-year period beginning on the date of the enactment of this 
Act, a report regarding the consultations and determinations made 
by the Secretary under this section. The report shall include any 
recommendations of the Secretary regarding the need for, and fea-
sibility of, using National Guard facilities for homeless shelters 
and any recommendations of the Secretary for administrative or 
legislative action to provide for such use. 
SEC. 1412. STRATEGY TO ELIMINATE UNFIT TRANSIENT FACILITIES. 
Section 825(a) of the Cranston-Gronzalez National Affordable 
Housing Act (42 U.S.C. 11301 note) is amended in the first 
sentence— 
(1) by striking "Cranston-Gronzalez National Affordable 
Housing Act" and inserting "Housing and Community Develop-
ment Act of 1992"; and 
(2) by striking "July 1. 1992" and inserting "July 1, 1994". 
SEC. 1413. AMENDMENTS TO TABLE OF CONTENTS. 
The table of contents in section 101(b) of the Stewart B. McKin-
ney Homeless Assistance Act is amended— 
(1) by striking the item relating to section 401 and inserting 
the following new item: 
"Sec. 401. Hoiising affordability strategy."; 
(2) by striking the item relating to the heading for subtitle 
C of title IV and all that follows through the item relating 
to section 484 and inserting the following new items: 
106 STAT. 4040 
PUBLIC LAW 102-550—OCT. 28, 1992 
"Subtitle C—Supportive Housing Program 
"Sec. 421. Purpose. 
"Sec. 422. Definitions. 
"Sec. 423. Eligible activities. 
"Sec. 424. Supportive housing. 
"Sec. 425. Supportive services. 
"Sec. 426. Program requirements. 
"Sec. 427. Regulations. 
"Sec. 428. Reports to Congress. 
"Sec. 429. Authorization of appropriations. 
"Subtitle D—Safe Havens for Homeless Individuals Demonstration Program 
"Sec. 431. Establishment of demonstration. 
"Sec. 432. Definitions. 
"Sec. 433. Program assistance. 
"Sec. 434. Program requirements. 
"Sec. 435. Occupan<^ charge. 
"Sec. 436. Termination of assistance. 
"Sec. 437. Evaluation and report. 
"Sec. 438. Regulations. 
"Sec. 439. Authorization of appropriations. 
"Subtitle E—^Miscellaneous Programs 
"Sec. 441. Section 8 assistance for single room occupancy dwellings. 
"Sec. 442. Community development block grant amendment. 
"Sec. 443. Administrative provisions. 
"Subtitle F—Shelter Plus Care Program 
"PART I—GENERAL REQUIREMENTS 
"Sec. 451. Purpose. 
"Sec. 452. Rental housing assistance. 
"Sec. 453. Supportive services requirements. 
"Sec. 454. Applications. 
"Sec. 455. Selection criteria. 
"Sec. 456. Required agreements. 
"Sec. 457. Housing standards and rent reasonableness. 
"Sec. 458. Tenant rent. 
"Sec. 459. Administrative fees. 
"Sec. 460. Occupancy. 
"Sec. 461. Termination of assistance. 
"Sec. 462. Definitions. 
"Sec. 463. Authorization of appropriations. 
"PART H—TENANT-BASED RENTAL ASSISTANCE 
"Sec. 471. Authority. 
"Sec. 472. Housing assistance. 
"Sec. 473. Amount of assistance. 
"PART III—PROJECT-BASED RENTAL ASSISTANCE 
"Sec. 476. Authority. 
"Sec. 477. Housing assistance. 
"Sec. 478. Term of contract and amount of assistance. 
"PART IV—SPONSOR-BASED RENTAL ASSISTANCE 
"Sec. 481. Authority. 
"Sec. 482. Housing assistance. 
"Sec. 483. Term of contract and amount of assistance. 
"PART V—SECTION 8 MODERATE REHABILITATION ASSISTANCE FOR SINGLE-ROOM 
OCCUPANCY DWELLINGS 
"Sec. 486. Authority. 
"Sec. 487. Fire and safety improvements. 
= 5 
, 
^ 
"Sec. 488. Contract reqmrements. 
"Subtitle G—^Rural Homeless Housing Assistance 
"Sec. 491. Rural homelessness grant program. 
"Sec. 492. Use of FMHA inventoiy for transitional housing for homeless persons 
and for turnkey housing."; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4041 
(3) by striking the item relating to section 501 and inserting 
the following new item: 
"Sec. 501. Use of imutilized and underutilized public buildings and real prop-
erty to assist the homeless." 
(4) by striking the items relating to sections 722 through 
725 and inserting the following new items: 
"Sec. 722. Grants for State and local activities for the education of homeless 
children and youtJi. 
"Sec. 723. Local educational agency grants for the education of homeless chil-
dren and youth. 
"Sec. 724. National responsibilities. 
"Sec. 725. Reports. 
"Sec. 726. Definitions."; 
(5) by inserting after the item relating to section 754 the 
following new items: 
"Sec. 755. Evaluation. 
"Sec. 756. Report by the Secretary."; 
and 
(6) by inserting after the item relating to section 762 the 
following new items: 
"Subtitle F—Family Support Centers 
"Sec. 771. Definitions. 
"Sec. 772. General grants for the provision of services. 
"Sec. 773. Training and retention. 
"Sec. 774. Family case managers. 
"Sec. 775. Gateway programs. 
"Sec. 776. Evaluation. 
"Sec. 777. Report. 
"Sec. 778. Construction. 
"Sec. 779. Authorization of appropriations.". 
SEC. 1414. USE OF FMHA INVENTORY FOR TRANSITIONAL HOUSING 
42 USC 11408a. 
FOR HOMELESS PERSONS AND FOR TURNKEY HOUSING. 
Subtitle G of the Title IV of the Stewart B. McKinney Homeless 
Assistance Act (as added by section 1408 of this Act) is amended 
by adding at the end the following new section: 
"SEC. 592. USE OF FMHA INVENTORY FOR TRANSITIONAL HOUSING 
FOR HOMELESS PERSONS AND FOR TURNKEY HOUSING. 
"(a) IN GENERAL.—^The Secretary of Agriculture (in this section 
referred to as the 'Secretarjr') shall, on a priority basis, lease or 
sell program and nonprogram inventory properties held by the 
Secretary under title V of the Housing Act of 1949— 
"(1) to provide transitional housing; and 
"(2) to provide turnkey housing for tenants of such transi-
tional housing and for eligible families. 
"(b) PRIORITY.—^The priority uses of inventory property under 
this section shall not have a higher priority than— 
"(1) the disposition of such property by sale to eligible 
families; or 
"(2) the disposition of such property by transfer for use 
as rental housing by eligible families. 
"(c) TRANSITIONAL HOUSING.— 
"(1) LEASES AUTHORIZED.—The Secretary shall lease inven-
tory properties to public agencies and nonprofit organizations 
to provide transitional housing for homeless families and 
individuals and to provide such agencies the option to provide 
turnkey housing opportunities for homeless persons and other 
inadequately housed families. 
106 STAT. 4042 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(2) RENTAL TO ELIGIBLE FAMIUES.—A public agency or 
nonprofit organization may rent housing leased to it under 
paragraph (1) to a family for up to 10 years and may, during 
that period, assist the tenant in obtaining a loan and credit 
assistance under title V of the Housing Act of 1949 to purchase 
the housing from the Secretary. 
"(d) LEASE PROCEDURES.— 
"(1) IDENTIFICATION OF PROPERTY.—Upon receipt by the 
Secretary of written notification from a public agency or non-
profit organization that it proposes to lease a property for 
the purpose of providing transitional housing or for the purpose 
of providing 
transitional 
housing and turnkey 
housing 
opportimities, the Secretary shall— 
"(A) withdraw the property from the market for not 
more than 30 days for the piupose of negotiations imder 
subparagraph (B); 
"(B) negotiate a lease agreement with the organization 
or agency; and 
"(C) if a lease is agreed to, commence the repairs 
necessary to make the property meet standards for decent, 
safe, ana sanitary housing. 
"(2) LEASE TERMS.—^A lease of inventory property under 
this section shall— 
"(A) be for a period of not more than 10 years; 
"(B) provide for the payment of $1 for the 10-year 
^ 
lease; and 
"(C) provide the nonprofit organization or public 
agency— 
"(i) the right to use the property for transitional 
r ^ 
housing; and 
"(ii) the option to arrange for the sale of the prop-
erty to an eligible purchaser. 
"(e) PURCHASE PROCEDURES.— 
"(1) IDENTIFICATION OF PROPERTY.—Upon receipt by the 
Secretary of written notification from a puolic agency or non-
profit organization that it proposes to purchase a property 
for the purpose of providing transitional housing or for the 
purpose of providing transitional housing and turnkey housing 
opportunities, the Secretary shall— 
"(A) withdraw the property from the market for not 
more than 30 days for the purpose of negotiations under 
subparagraph (B); 
"(B) negotiate a purchase agreement with the organiza-
tion or agency; and 
V 
"(C) if a purchase agreement is agreed to, commence 
the repairs necessary to make the property meet standards 
for decent, safe, and sanitary housing. 
"(2) PURCHASE TERMS.—^A purchase of inventory property 
under this section shall provide for a purchase price equal 
to not more than the fair market value of the property minus 
10 percent. 
"(f) EMPLOYMENT OF HOMELESS INDIVIDUALS.—A public agency 
or nonprofit organization may lease or purchase property imder 
this section only if the agencv or organization, to the maximum 
extent practicable, involves homeless individuals and families, 
through emplojnnent, volunteer services, or otherwise, in maintain-
ing, operating, and renovating any properties leased or acquired 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4043 
under this section and in providing any services for occupants 
of properties assisted under this section. 
"(g) PARTICIPATION OF HOMELESS INDIVIDUALS.— 
"(1) IN GENERAL.—The Secretary shall, by regulation, Regulations. 
require each public agency and nonprofit organization leasing 
or purchasing property under this section to provide for the 
participation of not less than 1 homeless individual or former 
nomeless individual on the board of directors or other equiva-
lent poUcy making entity of such agency or organization, to 
the extent that such organization or applicant considers and 
makes policies and decisions regarding any property acquired 
under this section. 
"(2) WAIVER.—^The Secretary may grant a waiver to a public 
agency or nonprofit organization that is unable to meet the 
requirement oi paragraph (1), if the agency or organization 
agrees to otherwise consult with homeless or formerly homeless 
individuals in considering and making such policies and deci-
sions. 
"(h) BUDGET COMPLIANCE.—The authority provided to the Sec-
retary under this section shall be effective only to the extent 
approved in advance in appropriations Acts.". 
Subtitle B—^Interagency Council on the 
Homeless 
SEC. 1421. AUTHORIZATION OF APPROPRIATIONS. 
Section 208 of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11318) is amended to read as follows: 
'9EC. 208. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out this 
title $1,500,000 for fiscal year 1993 and $1,563,000 for fiscal year 
1994.". 
SEC. 1422. EXTENSION. 
Section 209 of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11319) is amended by striking "October 1, 1992" 
and inserting "October 1,1994". 
Subtitle C—^Federal Emergency 
Management Food and Shelter Program 
SEC. 1431. AUTHORIZATION OF APPROPRIATIONS. 
Section 322 of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11352) is amended to read as follows: 
"SEC. 322. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out this 
title $180,000,000 for fiscal year 1993 and $187,560,000 for fiscal 
year 1994.". 
SEC. 1432. EMPLOYMENT 
AND 
PARTICIPATION 
OF 
HOMELESS 
INDIVIDUALS IN LOCAL PROGRAMS. 
Section 316(a) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11346(a)) is amended— 
106 STAT. 4044 
PUBLIC LAW 102-550—OCT. 28, 1992 
Annunzio-
Wylie 
Anti-Money 
Laundering 
Act. 
12 use 1811 
note. 
(1) in paragraph (3), by striking "and" at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
"(5) guidelines requiring each private nonprofit organiza-
tion and local government canying out a local emer|^ency food 
and shelter program with amounts provided under this subtitle, 
to the maximum extent practicable, to involve homeless individ-
uals and families, through employment, volunteer services, or 
otherwise, in providing emergency food and shelter and in 
otherwise carrying out the local program; and 
"(6) guidelines requiring each private nonprofit organiza-
tion and local government canying out a local emergency food 
and shelter program with amounts provided under tms subtitle 
to provide for the participation of not less than 1 homeless 
individual or former homeless individual on the board of direc-
tors or other equivalent policy making entity of the organization 
or governmental agency to the extent that such entity considers 
and makes policies and decisions regarding the local program 
of the organization or locality; except that such guidelines may 
grant waivers to applicants imable to meet such requirement 
if the organization or government agrees to otherwise consult 
with homeless or formerly homeless individuals in considering 
and making such policies and decisions.". 
TITLE XV—ANNUNZIO-WYLIE ANTI-
MONEY LAUNDERING ACT 
SEC. 1500. SHORT TITLE. 
This title may be cited as the "Annimzio-Wylie Anti-Money 
Laundering Act". 
Subtitle A—^Termination of Charters, 
Insurance, and Offices 
SEC. 1501. AUTHORITY TO APPOINT CONSERVATOR FOR DEPOSITORY 
INSTITUTIONS CONVICTED OF MONEY LAUNDERING. 
(a) INSURED DEPOSITORY INSTITUTIONS.—Section ll(cX5) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(cX5)) is amended 
by adding at the end the following new subparagraph: 
"(M) MONEY LAUNDERING OFFENSE.—^The Attorney 
General notifies the appropriate Federal banking agency 
or the Corporation in writing that the insured depository 
institution has been foimd guilty of a criminal offense 
under section 1956 or 1957 of title 18, United States Code, 
or section 5322 of title 31, United States Code.". 
(b) INSURED CREDIT UNIONS.—Section 206(h)(1) of the Federal 
Credit Union Act (12 U.S.C. 1786(hXl)) is amended— 
(1) by redesignating subparagraphs (C) and (D) as subpara-
graphs (D) and (E), resjpectively; and 
(2) by inserting after subparagraph (B) the following new 
subparagraph: 
"(C) the Attorney General notifies the Board in writing 
that an insured credit union has been found guilty m 
note. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4045 
a criminal offense under section 1956 or 1957 of title 18, 
United States Code, or section 5322 of title 31, United 
States Code;". 
(c) EFFECTIVE DATE.—^The amendments made by this section 1
2 use 1
7
8
6 
shall take effect on December 20,1992. 
SEC. 1602. BEVOKING CHARTER OF FEDERAL DEPOSITORY INSTITU-
TIONS CONVICTED OF MONEY LAUNDERING OR CASH 
TRANSACTION REPORTING OFFENSES. 
(a) NATIONAL BANKS.—Section 5239 of the Revised Statutes 
(12 U.S.C. 93) is amended by adding at the end the following: 
"(c) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR 
CASH TRANSACTION REPORTING OFFENSES.— 
"(1) IN GENERAL.— 
"(A) CONVICTION OF TITLE 18 OFFENSES.— 
"(i) DUTY TO NOTIFY.—If a national bank, a Federal 
branch, or Federal agency has been convicted of any 
criminal ofiTense under section 1956 or 1957 of title 
18, United States Code, the Attorney General shall 
provide to the Comptroller of the Currency a written 
notification of the conviction and shall include a cer-
tified copy of the order of conviction from the court 
rendering the decision. 
"(ii) NOTICE OF TERMINATION; PRETERMINATION 
HEARING.—^After receiving written notification from the 
Attorney General of such a conviction, the Comptroller 
of the Currency shall issue to the national bank. Fed-
eral branch, or Federal agency a notice of the Comptrol-
ler's intention to terminate all rights, privileges, and 
franchises of the bank. Federal branch, or Federal 
agency and schedule a pretermination hearing. 
"(B) CONVICTION OF TITLE 31 OFFENSES.—If a national 
bank, a Federal branch, or a Federal agency is convicted 
of any criminal offense under section 5322 of title 31, 
United States Code, after receiving written notification 
from the Attorney General, the Comptroller of the Currency 
may issue to the national bank. Federal branch, or Federal 
agency a notice of the Comptroller's intention to terminate 
sdl rights, privileges, and nranchises of the bank. Federal 
branch, or Federed agency and schedule a pretermination 
hearing. 
"(C) JUDICIAL REVIEW.—Section 8(h) of the Federal 
Deposit Insurance Act shall apply to any proceeding under 
this subsection. 
"(2) FACTORS TO BE CONSIDERED.—^In determining whether 
a franchise shall be forfeited under paragraph (1), the Comptrol-
ler of the Currency shall take into accoiuit the following factors: 
"(A) The extent to which directors or senior executive 
officers of the national bank, Federal branch, or Federal 
agency knew of, or were involved in, the commission of 
the money laundering offense of which the bank. Federal 
branch, or Federal agency was found guilty. 
"(B) The extent to which the offense occurred despite 
the existence of policies and procedures within the national 
bank. Federal branch, or Federal agency which were 
designed to prevent the occurrence of any such offense. 
106 STAT. 4046 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(C) The extent to which the national bank, Federal 
branch, or Federal agency has fully cooperated with law 
enforcement authorities with resjpect to the investigation 
of the money laundering offense of which the bank. Federal 
branch, or Federal agency was found guilty. 
"(D) The extent to which the national bank. Federal 
branch, or Federal agency has implemented additional 
interned controls (since the commission of the offense of 
which the bank. Federal branch, or Federal agency was 
found guilty) to prevent the occurrence of any other money 
laundering offense. 
"(E) The extent to which the interest of the local 
community in having adequate deposit and credit services 
available would be threatened by tiie forfeiture of the fran-
chise. 
"(3) SUCCESSOR LIABILITY.—This subsection shall not apply 
to a successor to the interests of, or a person who acquires, 
a bank, a Federal branch, or a Federal agency that violated 
a provision of law described in paragraph (1), if the successor 
succeeds to the interests of the violator, or the acquisition 
is made, in good faith and not for purposes of evading this 
subsection or regulations prescribed under this subsection. 
**(4) DEFINITION.—^The term 'senior executive officer* has 
the same meaning as in regulations prescribed under section 
32(f) of the Federal Deposit Insurance Act.**. 
(b) FEDERAL SAVINGS ASSOCIATIONS.—Section 5 of the Home 
Owners' Loan Act (12 U.S.C. 1464) is amended by adding at the 
end the following: 
"(w) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR 
CASH TRANSACTION REPORTING OFFENSES.— 
"(1) IN GENERAL.— 
"(A) CONVICTION OF TITLE IS OFFENSE.— 
"(I) DUTY TO NOTIFY.—^If a Federal savings associa-
tion has been convicted of any criminal offense under 
section 1956 or 1957 of title 18, United States Code, 
the Attorney General shall provide to the Director 
a written notification of the conviction and shall 
include a certified copy of the order of conviction from 
the court rendering the decision. 
"(II) NOTICE OF TERMINATION; PRETERMINATION 
HEARING.—After receiving written notification from the 
Attorney (General of such a conviction, the Director 
shall issue to the savings association a notice of the 
Director's intention to terminate all rights, privileges, 
and franchises of the savings association and schedule 
a pretermination hearing. 
"(B) CONVICTION OF TITLE 31 OFFENSES.—If a Federal 
savings association is convicted of any criminal offense 
under section 5322 of title 31, United States Code, after 
receiving written notification from the Attorney General, 
the Director may issue to the savings association a notice 
of 
the Director's intention to terminate all rights, privileges, 
and franchises of the savings association and schedule a 
pretermination hearing. 
"(C) JUDICIAL REVIEW.—Subsection (dXlXBXvii) shall 
apply to any proceeding under this subsection. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4047 
"(2) FACTORS TO BE CONSIDERED.—^In determining whether 
a franchise shcQl be forfeited under paragraph (1), the Director 
shall take into account the following factors: 
"(A) The extent to which directors or senior executive 
ofi&cers of the savings association knew of, were involved 
in, the commission of the money laiindering ofiTense of 
which the association was found guilty. 
"(B) The extent to which the offense occurred despite 
the existence of policies and procedures within the savings 
association which were designed to prevent the occurrence 
of any such offense. 
''(C) The extent to which the savings association has 
fully cooperated with law enforcement authorities with 
respect to the investigation of the money laxmdering offense 
of which the association was found guilty. 
"(D) The extent to which the savings association has 
implemented additional internal controls (since the 
commission of the offense of which the savings association 
was found guilty) to prevent the occurrence of any other 
money laundering offense. 
"(E) The extent to which the interest of the local 
community in having adequate deposit and credit services 
available would be threatened by the forfeiture of the fran-
chise. 
"(3) SUCCESSOR LIABILITY.—This subsection shall not apply 
to a successor to the interests of, or a person who acquires, 
a savings association that violated a provision of law described 
in paragraph (1), if the successor succeeds tq the interests 
of the violator, or the acquisition is made, in good faith and 
not for purposes of evading this subsection or regulations pre-
scribed imder this subsection. 
**(4) DEFINITION.—The term 'senior executive officer* has 
the same meaning as in reg^ations prescribed under section 
32(f) of the Federal Deposit Insurance Act.". 
(c) FEDERAL CREDIT UNIONS.—Title I of the Federal Credit 
Union Act (12 U.S.C. 1752 et seq.) is amended by adding at the 
end the following new section: 
•^EC. 131. FORFEITURE OF ORGANIZATION CERTIFICATE FOR MONEY 
12 USC 1772D. 
LAUNDERING 
OR 
CASH 
TRANSACTION REPORTING 
OFFENSES. 
"(a) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR 
CASH TRANSACTION REPORTING OFFENSES.— 
"(1) CONVICTION OF TITLE IS OFFENSES.— 
"(A) DUTY TO NOTIFY.—^If a credit union has been con-
victed of any criminal offense under section 1956 or 1957 
of title 18, United States Code, the Attorney General shall 
provide to the Board a written notification of the conviction 
and shall include a certified copy of the order of conviction 
from the court rendering the decision. 
"(B) NOTICE OF TERMINATION; PRETERMINATION HEAR-
ING.—After receiving written notification from the Attorney 
General of such a conviction, the Board shall issue to 
such credit union a notice of its intention to terminate 
all rights, privileges, and franchises of Uie crecht union 
and schedule a pretermination hearing. 
106 STAT. 4048 
PUBLIC LAW 102-550—OCT. 28, 1992 
**(2) CONVICTION OF TITLE 3I OFFENSES.—If a credit union 
is convicted of any crimincd offense under section 5322 of title 
31, United States Code, after receiving written notification 
from the Attorney General, the Board may issue to such credit 
union a notice of its intention to terminate all rights, privileges, 
and 
franchises of the credit union and scnedule a 
pretermination hearing. 
"(3) JUDICIAL REVIEW.—Section 206(j) shall apply to any 
proceeding imder this section. 
*'(b) FACTORS TO BE CONSIDERED.—In determining whether 
a franchise shall be forfeited under subsection (a), the Board shall 
take into account the following factors: 
"(1) The extent to which directors, committee members, 
or senior executive officers (as defined by the Board in regula-
tions which the Board shall prescribe) of the credit union knew 
of, or were involved in, the commission of the money laimdering 
offense of which the credit union was found guilty. 
"(2) The extent to which the offense occurred despite the 
existence of policies and procedures within the credit union 
which were designed to prevent the occurrence of any such 
offense. 
"(3) The extent to which the credit union has fully 
cooperated with law enforcement authorities with respect to 
the investigation of the money laimdering offense of which 
the credit union was foimd guilty. 
"(4) The extent to which the credit union has implemented 
additional internal controls (since the commission of the offense 
of which the credit union was found guilty) to prevent the 
occurrence of any other money laundering offense. 
"(5) The extent to which the interest of the local community 
in having adequate deposit and credit services available would 
be threatened by the forfeiture of the franchise. 
"(c) SUCCESSOR LIABILITY.—This section shall not apply to a 
successor to the interests of, or a person who acquires, a credit 
imion that violated a provision of law described in subsection (a), 
if the successor succeeds to the interests of the violator, or the 
acquisition is made, in good faith and not for purposes of evading 
this section or regulations prescribed imder this section.". 
SEC. 1503. TERMINATING 
INSURANCE 
OF STATE 
DEPOSITORY 
INSTITUTIONS CONVICTED OF MONEY LAUNDERING OR 
CASH TRANSACTION REPORTING OFFENSES. 
(a) STATE BANKS AND SAVINGS AssocuTiONS.— 
(1) IN GENERAL.—Section 8 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818) is amended by adding at the end 
the following new subsection: 
"(W) TERMINATION OF INSURANCE FOR MONEY LAUNDERING OR 
" 
CASH TRANSACTION REPORTING OFFENSES.— 
"(1) I N GENERAL.— 
"(A) CONVICTION OF TITLE IS OFFENSES.— 
"(i) DUTY TO NOTIFY.—^If an insured State deposi-
tory institution has been convicted of any criminal 
offense imder section 1956 or 1957 of title 18, United 
Stetes Code, the Attorney General shall provide to 
the Corporation a written notification of the conviction 
and shall include a certified copy of the order of convic-
tion from the court rendering the decision. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4049 
"(ii) NOTICE OF TERMINATION; PRETERMINATION 
HEARING.—^After receipt of written notification from 
the Attorney General by the Corporation of such a 
conviction, the Board of Directors shall issue to the 
insured depository institution a notice of its intention 
to terminate the msured status of the insured deposi-
tory institution and schedule a hearing on the matter, 
whidi shall be conducted in all respects as a termi-
nation hearing pursuant to paragraphs (3) through 
(5) of subsection (a). 
"(B) CONVICTION OF TITLE 3I OFFENSES.—If an insured 
State depository institution is convicted of any criminal 
offense under section 5322 of title 31, United States Code, 
after receipt of written notification from the Attorney Gen-
ersd by the Corporation, the Board of Directors may initiate 
S
roceedings to terminate the insured status of the insured 
epository institution in the manner described in subpara-
graph (A). 
"(C) NOTICE TO STATE SUPERVISOR.—The Corporation 
shall simultaneously transmit a copy of any notice issued 
under this paragraph to the appropriate State financial 
institutions supervisor. 
"(2) FACTORS TO BE CONSIDERED.—In determining whether 
to terminate insurance under paragraph (1), the Board of Direc-
tors shall take into accoimt the following factors: 
"(A) The extent to which directors or senior executive 
officers of the depository institution knew of, or were 
involved in, the commission of the money laundering 
offense of which the institution was found guilty. 
"(B) The extent to which the offense occurred despite 
the existence of policies and procedures within the deposi-
tory institution which were designed to prevent the occur-
rence of any such offense. 
*
*
(
C
) Tiie extent to which the depository institution 
has fiilly cooperated with law enforcement authorities with 
respect to the investigation of the money laundering offense 
of which the institution was found guilty. 
"(D) The extent to which the depositor/ institution 
has implemented additional internal controls (since the 
commission of the offense of which the depository institu-
tion was found guilty) to prevent the occurrence of any 
other money laundering offense. 
"(E) The extent to which the interest of the local 
commimity in having adequate deposit and credit services 
available would be threatened by the termination of insur-
ance. 
"(3) NOTICE TO STATE BANKING SUPERVISOR AND PUBLIC.— 
When the order to terminate insured status initiated pursuant 
to this subsection is final, the Board of Directors shall— 
"(A) notify the State banking supervisor of any State 
depository institution described in paragraph (1) and the 
Omce of Thrift Supervision, where appropriate, at least 
10 days prior to the effective date of tne order of termi-
nation of the insured status of such depository institution, 
including a State branch of a foreign bank; and 
*
*
(
B
) publish notice of the termination of the insured Federal 
status of the depository institution in the Federal Register. ^
®
b
i
^
*
*
t
" 
106 STAT. 4050 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(4) 
TEMPORARY INSURANCE OF PREVIOUSLY INSURED 
DEPOSITS.—^Upon termination of the insured status of any state 
depository institution pursuant to paragraph (1), the deposits 
of such depository institution shcdl be treated in accordance 
with subsection (aX7). 
"(6) SUCCESSOR LIABILITY.—This subsection shall not apply 
to a successor to the interests of, or a person who acquires, 
an insured depository institution that violated a provision of 
law described in paraip'aph (1), if the successor succeeds to 
the interests of the violator, or the acquisition is made, in 
good faith and not for purposes of evading this subsection 
or regulations prescribed under this subsection. 
(6) DEPlNrnoN.—^The term 'senior executive officer* has 
the same meaning as in regulations prescribed imder section 
32(f) of this Act.". 
(2) TECHNICAL AMENDMENT.—Section 8(aX3) of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(aX3)) is amended by 
inserting 
"of this subsection or subsection (w)" after 
"subparagraph (B)". 
(b) STATE CREDIT UNIONS.—Section 206 of the Federal Credit 
Union Act (12 U.S.C. 1786) is amended by adding at the end 
the following new subsection: 
"(v) TERMINATION OF INSURANCE FOR MONEY LAUNDERING OR 
CASH TRANSACTION REPORTING OFFENSES.— 
"(1) IN GENERAL.— 
"(A) CONVICTION OF TITLE IS OFFENSES.— 
"(i) DUTY TO NOTIFY.—If an insured State credit 
union has been convicted of any criminal offense under 
section 1956 or 1957 of title 18, United States Code, 
the Attorney General shall provide to the Board a 
written notification of the conviction and shall include 
a certified copy of the order of conviction from the 
court rendering the decision. 
"(ii) NOTICE OF TERMINATION.—After written 
notification from the Attorney General to the Board 
of such a conviction, the Board shall issue to such 
insured credit union a notice of its intention to termi-
nate the insured status of the insured credit union 
and schedule a hearing on the matter, which shall 
be conducted as a termination hearing pursuant to 
subsection (b) of this section, except that no period 
{ .. 
for correction shall apply to a notice issued under 
this subparagraph. 
"(B) CONVICTION OF TITLE 3I OFFENSES.—If a credit 
union is convicted of any criminal offense under section 
5322 of title 31, United States Code, after prior written 
notification from the Attorney General, the Board may 
initiate proceedings to terminate the insured status of such 
credit union in the manner described in subparagraph (A). 
"(C) NOTICE TO STATE SUPERVISOR.—The Board shall 
simultaneously transmit a copy of any notice imder this 
paragraph to the appropriate State financial institutions 
supervisor. 
"(2) FACTORS TO BE CONSIDERED.—In determining whether 
to terminate insurance under paragraph (1), the Board shall 
take into account the following factors: 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4051 
*'(A) The extent to which directors, committee members, 
or senior executive officers (as defined by the Board in 
regulations which the Board shall prescribe) of the credit 
union knew of, or were involved in, the commission of 
the money laundering offense of which the credit union 
was foun^jruilty. 
"(B) The extent to which the offense occurred despite 
the existence of policies and procedures within the credit 
union which were designed to prevent the occurrence of 
any such offense. 
"(C) The extent to which the credit union has fully 
cooperated witii law enforcement authorities with respect 
to the investigation of the money laundering offense of 
which the credit union was found guilty. 
"(D) The extent to which the credit union has imple-
mented additional internal controls (since the commission 
of the offense of which the credit union was found guilty) 
to prevent the occurrence of any other money laundering 
offense. 
"(E) The extent to which the interest of the local 
community in having adequate deposit and credit services 
available would be tiireatened by me termination of insur-
ance. 
"(3) NOTICE TO STATE CREDIT UNION SUPERVISOR AND PUB-
LIC.—When the order to terminate insured status initiated 
pursuant to this subsection is final, the Board shall— 
"(A) notify Uie commission, board, or authority (if any) 
having supervision of the credit union described in para-
graph (1) at least 10 da^s prior to the effective date of 
the order of the termination of the insured status of such 
credit union; and 
"(B) publish notice of the termination of the insured 
status of the credit union. 
"(4) TEMPORARY INSURANCE OF PREVIOUSLY INSURED 
DEPOSITS.—Upon termination of the insured status of any State 
credit union pursuant to paragraph (1), the deposits of such 
/ 
credit union shall be treated in accordance with section 
206(dX2). 
"(5) SUCCESSOR UABILITY.—This subsection shall not apply 
to a successor to the interests of, or a person who acquires, 
an insured credit union that violated a provision of law 
described in paragraph (1), if the successor succeeds to the 
interests of the violator, or the acquisition is made, in good 
faitli and not for purposes of evadmg this subsection or regula-
tions prescribed under this subsection.". 
SEC. 1S04. BEMOVING PARTIES INVOLVED IN CURRENCY REPORTING 
VIOLATIONS. 
(a) FDIC-lNSURED INSTITUTIONS.— 
(1) 
VIOLATION OF REPORTING REQUIREMENTS.—Section 
8(eX2) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(eX2)) is amended to read as follows: 
"(2) SPECIFIC VIOLATIONS.— 
*
*
(
A
) IN GENERAL.—^Whenever the appropriate Federal 
banking agency determines that— 
"(i) an uistitution-afKUated party has committed 
a violation of any provision of subchapter II of chapter 
106 STAT. 4052 
PUBLIC LAW 102-550—OCT. 28, 1992 
63 of title 31, United States Code, and such violation 
was not inadvertent or unintentional; 
"(ii) an officer or director of an insured depository 
institution has knowledge that an institution-affiliated 
party of the insured depositoiy institution has violated 
any such provision or any provision of law referred 
to in subsection (gXlXAXii); or 
"(iii) an officer or director of an insured depository 
institution has committed any violation of the Deposi-
tory Institution Management Interlocks Act, 
the agency may serve upon such party, officer, or director 
a written notice of the agenc/s intention to remove such 
party 
from 
office. 
^(B) FACTORS TO BE CONSIDERED.—In determining 
whether an officer or director should be removed as a 
result of the application of subparagraph (AXii), the agen(:y 
shall consider whether the officer or director took appro-
priate action to stop, or to prevent the recurrence of, a 
violation described in such subparagraph.". 
(2) CERTAIN FELONY CHARGES.—Section 8(gXl) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(gXl)) is amended 
to read as follows: 
"(1) SUSPENSION OR PROHIBITION.— 
*
*
(
A
) IN GENERAL.—Whenever any institution-af&liated 
party is charged in any information, indictment, or com-
plaint, with the commission of or participation in— 
"(i) a crime involving dishonesty or breach of trust 
which is punishable by imprisonment for a term 
exceeding one year under State or Federal law, or 
"(ii) a criminal violation of section 1956, 1957, 
or 1960 of title 18, United States Code, or section 
5322 of title 31, United States Code, 
the appropriate Federal banking agency may, if continued 
service or participation by such party may pose a threat 
to the interests of the depository institution's depositors 
or may threaten to impair public confidence in the deposi-
tory institution, by written notice served upon such party, 
suspend such party from office or prohibit such party frt>m 
further participation in any manner in the conauct of tiie 
affairs of the depository institution. 
"(B) PROVISIONS APPUCABLE TO NOTICE.— 
**(i) COPY.—A copy of any notice under subpara-
^aph (A) shall also be served upon the depository 
institution. 
"(ii) EFFECTIVE PERIOD.—A suspension or prohibi-
tion under subparagraph (A) shall remain in effect 
until the information, indictment, or complaint referred 
to in such subparagraph is finally disposed of or until 
terminated by the agency. 
"(C) REMOVAL OR PROHIBITION.— 
"(i) IN GENERAL.—If a judgment of conviction or 
an agreement to enter a pretrial diversion or other 
similar program is entered against an institution-affili-
ated party in connection with a crime described in 
subparagraph (AXi), at such time as such judgment 
is not subject to fiirther appellate review, tne appro-
priate Federal banking agency may, if continued serv-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4053 
ice or participation by such party ma^ pose a threat 
to the interests of the depository institution's deposi-
tors or may threaten to impair public confidence in 
the depositoiv institution, issue and serve upon such 
party an oraer removii^ such party fi*om office or 
prohibiting such party from further participation in 
any manner in the conduct of the affairs of the deposi-
tory institution without the prior written consent of 
the appropriate agency. 
"(ii) REQUIRED FOR CERTAIN OFFENSES.—In the 
case of a judgment of conviction or agreement against 
an institution-affiliated party in connection with a vio-
lation described in subparagraph (AXii), the appro-
priate Federal banking agen(^ shall issue and serve 
upon such party an order removing such party from 
omce or prohibiting such party from further participa-
tion in any manner in the conduct of the affairs of 
the depository institution without the prior written 
consent of the appropriate agency. 
"(D) PROVISIONS APPUCABLE TO ORDER.— 
"(i) COPY.—A copy of any order under subpara-
graph (C) shall also be served upon the depository 
institution, whereupon the institution-affiliated party 
who is subject to the order (if a director or an omcer) 
shall cease to be a director or ofiEicer of such depository 
institution. 
**(ii) EFFECT OF ACQUITTAL.—A finding of not guilty 
or other disposition of the charge shall not preclude 
the agency from instituting proceedings after such find-
ing or disposition to remove such party from office 
or to pronibit further participation in depository 
institution affairs, pursuant to paragraph (1), (2), or 
(3) of subsection (e) of this section. 
"(iii) EFFECTIVE PERIOD.—Any notice of suspension 
or order of removal issued under this paragraph shall 
remain effective and outstandini^ until the completion 
of any hearing or appeal authorized imder paragraph 
(3) unless terminated by the agency.", 
(b) CREDIT UNIONS.— 
(1) 
VIOLATION OF REPORTING REQUIREMENTS.—Section 
206(gX2) of the Federal Credit Union Act (12 U.S.C. 1786(gX2)) 
is amended to read as follows: 
"(2) SPECIFIC VIOLATIONS.— 
"(A) IN GENERAL.—^Whenever the Board determines 
that— 
"(i) an institution-affiliated party has committed 
a violation of any provision of subchapter II of chapter 
53 of title 31, United States Code, unless such violation 
was inadvertent or unintentional; 
"(ii) an officer or director of an insured credit union 
has knowledge that an institution-affiliated party of 
the insured credit imion has violated any such provi-
sion or any provision of law referred to in subsection 
(iXlXAXii);or 
**(iii) an officer or director of an insured credit 
union has committed anv violation of the Depository 
Institution Management Interlocks Act, 
106 STAT. 4054 
PUBLIC LAW 102-550—CXTT. 28, 1992 
the Board may serve upon such party, officer, or director 
a written notice of the Board's intention to remove sudi 
officer or director from office. 
"(B) FACTORS TO BE CONSIDERED.—In determining 
whether an officer or director should be removed as a 
result of the application of subparagraph (AXii), the Board 
shall consider whether the ofificer or director took appro-
priate action to stop, or to prevent the recurrence of, a 
violation described in such subparagraph.". 
(2) CERTAIN FELONY CHARGES.—Section 206(iXl) of the Fed-
eral Credit Union Act (12 U.S.C. 1786(iXl)) is amended to 
read as follows: 
*
*
(
1
) SUSPENSION OR PROHIBITION AUTHORIZED.— 
"(A) IN GENERAL.—^Whenever any institution-affiliated 
party is charged in any information, indictment, or com-
plaint, with the commission of or participation in— 
"(i) a crime involving dishonesty or breach of trust 
which is punishable bv imprisonment for a term 
exceeding one year under State or Federal law, or 
"(ii) a criminal violation of section 1956, 1957, 
or 1960 of title 18, United States Code, or section 
5322 of title 31, United States Code, 
the Board may, if continued service or participation by 
such party may pose a threat to the interests of the credit 
unions members or may threaten to imjiair pubhc con-
fidence in the credit union, by written notice served upon 
such party, suspend such party hx>m office or prohibit 
such party from further participation in any manner in 
the conduct of 
the affidrs of the credit union. 
"(B) PROVISIONS APPUCABLE TO NOTICE.— 
"(i) COPY.—A copy of any notice under subpara-
graph (A) shall also be served upon the credit union. 
* 
"(ii) EFFECTIVE PERIOD.—^A suspension or prohibi-
tion under subparagraph (A) shall remain in effect 
until the information, indictment, or complaint referred 
to in such subparagraph is finally disposed of or until 
terminated by the Board. 
"(C) REMOVAL OR PROHIBITION.— 
"(i) IN GENERAL.—^If a judgment of conviction or 
an agreement to enter a pretrial diversion or other 
similar program is entered against an institution-affili-
ated party in connection with a crime described in 
subparagraph (AXi)> at such time as such iudcnnent 
is not subject to fiirther appellate review, the Board 
may, if continued service or participation by such party 
may pose a threat to the interests of the credit union^ 
members or ma}^ threaten to impair public confidence 
in the credit union, issue and serve upon such party 
an order removing such party from office or prohibiting 
such party from further participation in any manner 
in the conduct of the affairs of the credit union without 
the prior written consent of 
the Board. 
"(ii) REQUIRED FOR CERTAIN OFFENSES—In the case 
of a judgment of conviction or agreement against an 
institution-affiliated party in connection with a viola-
tion described in subparagraph (AXii), the Board shall 
issue and serve upon such party an order removing 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4055 
such party from office or prohibiting such party from 
further participation in any manner in the conduct 
of the affairs of the credit imion without the prior 
written consent of the Board. 
"(D) PROVISIONS APPUCABLE TO ORDER.— 
"(i) COPY.—A copy of any order under subpara-
graph (C) shall also be served upon such credit union, 
whereupon such party (if a director or an officer) shall 
cease to be a director or officer of such credit union. 
**(ii) EFFECT OF ACQUITTAL.—A finding of not guilty 
or other disposition of the charge shall not preclude 
the Board 
from 
instituting proceedings after such find-
ing or cUsposition to remove such party from office 
or to prohibit further participation in credit union 
affairs, pursuant to paragraph (1), (2), or (3) of sub-
section (g) of this section. 
"(iii) EFFECTIVE PERIOD.—Any notice of suspension 
or order of removal issued imder this paragraph shall 
remain effective and outstanding until the completion 
of any hearing or appeal authorized under paragraph 
(3) unless terminated by the Board.". 
(c) ATTORNEY GENERAL NOTICE REQUIREMENT.—Section 1956 
of title 18, United States Code, is amended by adding at the end 
the following new subsection: 
"(g) NOTICE OF CONVICTION OF FINANCIAL INSTITUTIONS.—If 
any fhiancial institution or any officer, director, or employee of 
any financial institution has been foimd fi^ty of an offense imder 
this section, section 1957 or 1960 of this title, or section 5322 
of titie 31, the Attorney General shall provide written notice of 
such fact to the appropriate regulatory agency for the financial 
institution.". 
(d) TECHNICAL CORRECTIONS TO PROVISIONS RELATING TO 
MONEY LAUNDERING ENFORCEMENT ACTIVITIES.— 
(1) Section 5318(aXl) of title 31, United States Code, is 
amended— 
(A) by striking "or the Postal Inspection Service"; and 
(B) by inserting "United States" before "Postal Service". 
(2) Section 5322(a) of title 31, United States Code, is 
amended by striking 'imprisonment" and inserting "imprisoned 
for". 
SEC. 1505. UNAUTHORIZED PARTICIPATION. 
Section 19(aXl) of the Federal Deposit Insurance Act (12 U.S.C. 
1829(aXl)) is amended by inserting "or money laundering" after 
"breach of trust". 
SEC. 1506. ACCESS BY STATE FINANCIAL INSTITUTION SUPERVISORS 
TO 
CURRENCY 
TRANSACTIONS 
REPORTS. 
' 
Section 5319 of title 31, United States Code, is amended— 
(1) in the first sentence, by striking "to an agency" and 
/ 
inserting "to an agency* including any State financial institu-
tions supervisory agency,"; and 
(2) by inserting after the second sentence the following 
new sentence: "The Secretary may only require reports on 
tiie use of such information by any State financial institutions 
supervisory agency for other than supervisory purposes.". 
69-194 O—93 
14:QL3(Pt6) 
106 STAT. 4056 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 1507. RESTRICTING STATE RRANCHES AND AGENCIES OF FOR-
EIGN BANKS CONVICTED OF MONEY LAUNDERING 
OFFENSES. 
Section 7 of the International Banking Act of 1978 (12 U.S.C. 
3105) is amended by inserting after subsection (h) the following 
new subsection: 
"(i) PROCEEDINGS RELATED TO CONVICTION FOR MONEY 
LAUNDERING OFFENSES.— 
"(1) NOTICE OF INTENTION TO ISSUE ORDER.—If the Board 
finds or receives written notice from the Attorney General 
that^ 
"(A) any foreigpi bank which operates a State agency, 
a State branch wmch is not an insured branch, or a State 
conmiercial lending company subsidiary; 
"(B) any State agency; 
"(C) any State branch which is not an insured branch; 
or 
^ 
"(D) anv State commercial lending subsidiary, 
has been found guilty of any money laimdering offense, the 
Board shall issue a notice to the agency, branch, or subsidiary 
of the Board's intention to commence a termination proceeding 
iinder subsection (e). 
"(2) DEFINITIONS.—^For purposes of this subsection— 
"(A) INSURED BRANCH.—The term 'insured branch' has 
the meaning given such term in section 3(8) of the Federal 
Deposit Insurance Act. 
"(B) MONEY LAUNDERING OFFENSE DEFINED.—The term 
'money laundering ofTense' means any criminal offense 
under section 1956 or 1957 of title 18, United States Code, 
or under section 5322 of title 31, United States Code.". 
Subtitle B—^Nonbank Financial 
Institutions and General Provisions 
SEC. isii. IDENTIFICATION OF FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Subchapter II of chapter 53 of title 31, United 
States Code, is amended by inserting after section 5326 the follow-
ing new section: 
''§5327. Identification of financial institutions 
"(a) REGULATIONS REQUIRED.—The Secretary of the Treasury 
shall prescribe regulations requiring each depository institution 
to identify' any customer (of tne depository institution) which— 
"(1) is a financial institution described in— 
"(A) any subparagraph of section 5312(aX2) other than 
^ 
subparagraphs (A) through (G); or 
"(B) any regulation under any such subparagraph; and 
"(2) has any account with the depository institution, 
"(b) REPORTS REQUIRED.—^Each depository institution shall 
report the names of and other information about financial institu-
tion customers required to be identified under subsection (a) to 
the Secretary at such times and in such manner as the Secretary 
shall prescribe by regulation. 
"(c) REPORTING OFFENSES.—^No person shall cause or attempt 
to cause any depository institution to fail to file a report requirod 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4057 
by this section or to file a report containing a material omission 
or misstatement of fact. 
"(d) AVAILABILITY OF REPORTS.—The Secretary shall provide 
reports filed under subsection (b) to appropriate State financial 
institution supervisory agencies for supervisory purposes. 
"(e) DEPOSITORY INSTITUTION DEFINED.—For purposes of this 
section, the term 'depository institution' means any financial institu-
tion described in subparagraph (A), (B), (C), (D), (E), or (F) of 
section 5312(aX2).''. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 5321(a) 
of title 31, United States Code, is amended by adding at the end 
the following new paragraph: 
"(7) FiNANCLUi INSTITUTION IDENTIFICATION VIOLATIONS.— 
"(A) PENALTY AUTHORIZED.—The Secretary may impose 
a civil money penalty on any person who willfully violates 
any provision of section 5327 or any regulation prescribed 
imder such section. 
"(B) MAXIMLM AMOUNT LIMITATION.—The amoimt of 
any civil money penalty imposed under subparagraph (A) 
shall not exceed $10,000 per day for each day during which 
a report remains unfiled or a report containing a material 
omission or misstatement of fact remains uncorrected.". 
"(c) CLERICAL AMENDMENT.—The table of sections for chapter 
53 of title 31, United States Code, is amended by inserting after 
the item relating to section 5326 the following new item: 
"5327. Identification of 
financial 
institutions.". 
(d) EFFECTIVE DATE OF REGULATIONS.—The initial final regula- 3i use 5327 
tions prescribed pursuant to section 5327 of title 31, United States °
°
*
®
-
Code (as added by subsection (a) of this section) shall take effect 
before January 1,1994. 
SEC. 1512. PROHMRNON 
OF 
ILLEGAL 
MONEY 
TRANSMTITING 
BUSINESSES. 
(a) IN GENERAL.—Chapter 95 of title 18, United States Code, 
is amended by adding at the end the following section: 
*
*
§ 1960. Prohibition of illegal money transmitting businesses 
"(a) Whoever conducts, controls, manages, supervises, directs, 
or owns all or part of a business, knowing the biisiness is an 
illegal money transmitting business, shall be fined in accordance 
with this title or imprisoned not more than 5 years, or both. 
"(b) As used in this section— 
"(1) the term 'illegal money transmitting business' means 
a money transmitting business that affects interstate or foreign 
commerce in any manner or degree and which is knowingly 
operated in a State— 
"(A) without the appropriate money transmitting State 
license; and 
"(B) where such operation is pimishable as a mis-
demeanor or a felony under State law; 
"(2) the term 'money transmitting* includes but is not lim-
ited to transferring funds on behalf of the public by any and 
all means including but not limited to transfers within this 
coimtry or to locations abroad by wire, check, draft, facsimile, 
or courier; and 
106 STAT. 4058 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(3) the term 'State' means any State of the United States, 
the District of Colimibia, the Northern Mariana Islands, and 
any commonwealth, territory, or possession of the United 
States.". 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 
95 of title 18, United States Code, is amended by adding at the 
end the following item: 
"1960. Prohibition of illegal money transmitting businesses.". 
(c) CRIMINAL FORFEITURE.—Section 982(aXl) of title 18, United 
States Code, is amended by striking "or 1957" and inserting ", 
1957, or 1960". 
SEC. 1513. COMPLIANCE PROCEDURES. 
Section 5318(aX2) of title 31, United States Code, is amended 
by inserting "or to guard against money laimdering" before the 
semicolon. 
SEC. 1514. NONDISCLOSURE OF ORDERS. 
Section 5326 of title 31, United States Code, is amended by 
adding at the end the following: 
"(c) NONDISCLOSURE OF ORDERS.—^No financial institution or 
ofiGcer, director, employee or agent of a financial institution subject 
to an order under this section may disclose the existence of, or 
terms of, the order to any person except as prescribed by the 
Secretary.". 
SEC. 1515. PROVISIONS 
RELATING 
TO RECORDKEEPING 
WITH 
RESPECT TO CERTAIN FUNDS TRANSFERS. 
(a) RECORDKEEPING REGULATIONS REQUIRED.—Section 21(b) of 
?!C^>^ 
the Federal Deposit Insurance Act (12 U.S.C. 1829b(b)) is 
amended— 
(1) by striking "(b) Where" and inserting "(b) RECORD-
KEEPING REGULATIONS.— 
"(1) IN GENERAL.—Where"; and 
(2) by adding at the end the following new paragraphs: 
"(2) DOMESTIC FUNDS TRANSFERS.—Whenever the Secretary 
and the Board of Governors of the Federal Reserve System 
(hereafter in this section referred to as the 'Board') determine 
that the maintenance of records, by insured depository institu-
tions, of payment orders which direct transfers of fimds over 
wholesale fonds transfer systems has a hi^h degree of useful-
ness in criminal, tax, or regulatory investigations or proceed-
ings, the Secretary and the Board shall jointly prescribe 
regulations to carry out the purposes of this section with respect 
to the maintenance of such records. 
"(3) INTERNATIONAL FUNDS TRANSFERS.— 
"(A) IN GENERAL.—The Secretary and the Board shall 
jointly prescribe, after consultation wiih State banking 
supervisors, final regulations requiring that insured deposi-
tory institutions, businesses that provide check cashing 
services, money transmitting businesses, and businesses 
that issue or redeem money orders, travelers' checks or 
otiier similar instruments maintain such records of pay-
ment orders which— 
"(i) involve international transactions; and 
"(ii) direct transfers of funds over wholesale funcLs 
transfer systems or on the books of any insured deposi-
tory institution, or on the books of any business that 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4059 
pKTOvides check cashing services, any money transmit-
ting business, and any business that issues or redeems 
money orders, travelers' checks or similar instruments, 
that will have a high degr^ of usefiilness in criminal, 
tax, or regulatory investigations or proceedings. 
"(B) FACTORS FOR CONSIDERATION.—In prescribing the 
regulations required under subparagraph (A), the Secretary 
and the Board shall consider— 
"(i) the usefulness in criminal, tax, or regulatory 
investigations or proceedings of any record required 
to be maintained pursuant to the proposed regulations; 
and 
"(ii) the effect the recordkeeping required pursuant 
to such proposed regulations will have on the cost 
and efficiency of the payment system. 
"(C) Availability of records.—^Any records required to 
be maintained pursiiant to the regulations prescribed under 
subparagraph (A) shall be submitted or made available 
to tne Secretary or the Board upon request.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—Sectior 21 of 
the Federal Deposit InsuriEince Act (12 U.S.C. 1829b) is amended— 
(1) in subsection (c), by striking '^ach insured" and insert-
ing "Subject to the requirements of any regulations prescribed 
jointly by the Secretary and the Board imder paragraph (2) 
or (3) of subsection (b), each insured"; 
^ 
(2) in subsection (e), by striking "Whenever any" and insert-
ing "Subject to the requirements of any regulations prescribed 
jointly by the Secretiiry and the Board under paragraph (2) 
or (3) of subsection (b), whenever £uiy"; and 
(3) in subsection (D, by striking "In addition to" and insert-
ing "Subject to the requirements of any regulations prescribed 
jointly by the Secretary and the Board under paragraph (2) 
or (3) of subsection (b) and in addition to". 
(c) EFFECTIVE DATE OF REGULATIONS.—The initial final regula- 1
2 use 182% 
tions prescribed pursuant to section 21(bX3) of the Federal Deposit ^°^-
Insurance Act (as added by subsection (aX2) of this section) shall 
take effect before January 1,1994. 
SEC. 1S16. USE OF CERTAIN RECORDS. 
Section 1112(f) of the Right to Financial Privacy Act of 1978 
(12 U.S.C. 3412(f)) is amended— 
(1) in paragraph (1), by inserting "or the Secretary of 
the Treasury" after the Attorney (jeneral"; and 
(2) in paragraph (2), by inserting "and only for criminal 
investigative purposes relatmg to money laiindering and other 
financial crimes by the Department of the Treasurjr after "the 
Department of Justice". 
SEC. ISl*^. SUSPICIOUS TRANSACTIONS AND FINANCIAL INSTITUTION 
ANTI-MONEY LAUNDERING PROGRAMS. 
(a) REPORTING REQUiREMENT.^Section 5324 of title 31, United 
States Code, is amended by inserting "or section 5325 or regulations 
prescribed under such section 5325" after "section 5313(a)" each 
place such term appears. 
(b) SUSPICIOUS TRANSACTIONS AND ENFORCEMENT PROGRAMS.— 
Section 5314 of title 31, United States Code, is amended by adding 
at the end the following new subsections: 
"(g) REPORTING OF SUSPICIOUS TRANSACTIONS.— 
106 STAT. 4060 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(1) IN GENERAL.—^The Secretaiy may require any financial 
institution, and any director, officer, employee, or agent of 
any financial institution, to report any suspicious transaction 
relevant to a possible violation of law or regulation. 
"(2) NOTIFICATION PROHIBITED.—A 
financial 
institution, and 
a director, officer, employee, or agent of any financial institu-
tion, who voluntcurily reports a suspicious transaction, or tiiat 
reports a suspicious transaction pursuant to this section or 
any other auUiority, may not notify any person involved in 
the transaction that the transaction has been reported. 
"(3) LIABILITY FOR DISCLOSURES.—Any financial institution 
that makes a disclosure of any possible violation of law or 
regulation or a disclosure pursuant to this subsection or any 
other authority, and anv oirector, officer, employee, or agent 
of such institution, shall not be liable to any person imder 
any law or regulation of the United States or any constitution, 
law, or regulation of any State or political subdivision thereof, 
for such disclosure or for any failure to notify the person 
involved in the transaction or any other person or such 
disclosure. 
"(h) ANTI-MONEY LAUNDERING PROGRAMS.— 
"(1) IN GENERAL.—In order to guard against money launder-
ing through financial institutions, the Secretary may require 
financial institutions to carry out anti-money laundering pro-
grams, including at a minimum 
"(A) the development of internal policies, procedures, 
and controls, 
"(B) the desip;nation of a compliance officer, 
*
*
(
C
) an ongomg employee training program, and 
"(D) an independent audit function to test programs. 
"(2) REGULATIONS.—^The Secretory may prescribe minimum 
standards for programs estoblished imder paragraph (1).". 
31 use 5311 
SEC. 1518. ANTI-MONEY LAUNDERING TRAINING TEAM. 
"° • 
The Secretory of the Treasury and the Attorney General shall 
jointly estoblish a team of experts to assist and provide training 
to foreign govemmente and agencies thereof in developing and 
expanding their capabilities for investigating and prosecuting viola-
tions of money laundering and related laws. 
SEC. 1S19. INTERNATIONAL MONEY LAUNDERING REPORTS. 
(a) UNITED STATES OBJECTIVES.—Section 481(aXl) of the For-
eign Assistence Act of 1961 (22 U.S.C. 2291(aXl)) is amended— 
(1) by striking out "and" at the end of subparagraph (D); 
(2) by redesignating subparagraph (E) as subparagraph 
(F); and 
(3) by inserting after subparagraph (D) the following new 
subparagraph: 
"(E) the objective of the United Stotes in dealing with 
the problem of international monev laimdering should be to 
ensure that countries adopt comprehensive domestic measures 
against money laundering and cooperative with each other 
in narcotics money laundering investigations, prosecutions, and 
related forfeiture actions; and 
(b) ANNUAL REPORTS.—Section 481(e) of that Act (22 U.S.C. 
2291(e)) is amended— 
(1) by redesignating paragraphs (7) and (8) as paragraphs 
(8) and (9), respectively; and 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4061 
(2) by inserting aifter paragraph (6) the following new para-
graph (7): 
(7)(A) Each report pursuant to this subsection shall include 
a report on major money laundering countries. This report shall 
specify— 
"(i) which countries are major money laundering coimtries; 
"(ii) which countiies identified pursuant to clause (i) have 
financial institutions engaging in currenpy transactions involv-
ing intemationcd narcotics trafficking proceeds that include 
significant amounts of United States currency or currency 
derived from illegal drug sales in the United States or that 
otherwise significantly affect the United States; 
"(iii) which countries identified pursuant to clause (ii) have 
not reached agreement with the United States authorities on 
a mechanism for exchanging adequate records in connection 
with narcotics investigations and proceedings; 
''(iv) which countries identified pursuant to clause (iii)— 
''(I) are negotiating in good faith with the United States 
to establish such a record-exchange mechanism, or 
'*(II) have adopted laws or regulations that ensure the 
availability to appropriate United States Government 
personnel and those of other governments of adequate 
records in connection with narcotics investigations and 
proceedings; and 
"(v) which countries identified pursuant to clause (i>— 
"(1) have ratified the United Nations Convention 
Against Illicit Traffic in Narcotic Drugs and Psychotropic 
Substances and are taking steps to implement that Conven-
tion and other applicable agreements and conventions such 
as the recommendations of the Financial Action Task Force, 
the policy directive of the European Community, the legis- 
\ 
lative guidelines of the Organization of American States, 
and other similar declarations, and 
''(II) have entered into bilateral agreements for the 
exchange of information on money-laundering with coun-
tries other than the United States, 
"(B) In addition, for each msgor money laimdering country, 
the report shall include findings on the coimtr/s adoption of law 
and regulations considered essential to prevent narcotics-related 
money laundering. Such findings shall include whether a country 
has— 
"(i) criminalized narcotics money laundering; 
"(ii) required banks and other financial institutions to know 
and record the identity of customers engaging in significant 
transactions, including the recording of large currency trans-
actions at thresholds appropriate to that coimtr/s economic 
situation; 
"(iii) required banks and other financial institutions to 
maintain, for an adequate time, records necessary to reconstruct 
significant transactions through financial institutions in order 
to be able to respond quickly to information requests firom 
appropriate government authorities in narcotics-related money 
laundering cases; 
"(iv) required or allowed financial institutions to report 
suspicious transactions; 
"(v) established systems for identifying, tracing, freezing, 
seizing, and forfeiting narcotics-related assets; 
106 STAT. 4062 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(vi) enacted laws for the sharing of seized narcotics assets 
with other governments; 
"(vii) cooperated, when requested, with appropriate law 
enforcement agencies of other governments investigating finan-
cial crimes related to narcotics; and 
''(viii) addressed the problem on international transpor-
tation of illegal-source currency and monetary instruments. 
The report shall also detail instances of refusals to cooperate with 
foreign governments, and any actions taken by the United States 
Government and any international organization to address such 
obstacles, including the imposition of sanctions or penalties. 
V 
"(C) The report shall also include information on multilateral 
and bilateral strategies pursued by the Department of State, the 
Department of Justice, the Department of the Treasury, and other 
relevant United States Government agencies, either collectively or 
individually, to ensure the cooperation of foreign governments with 
respect to narcotics-related money laimdering. 
"(D) The report shall include s{>ecific detail to demonstrate 
that all United States Grovemment agencies are pursuing a common 
strategy with respect to achieving international cooperation against 
money laundering and are pursuing a common strategy with respect 
to major money laundering countries, including a summary of 
United States objectives on a country-by-country basis. 
"(E) As used in this paragraph, the term 'major money launder-
ing coimtry* means a country whose financial institutions engage 
in currency transactions involving significant amounts of proceeds 
from international narcotics trafncking.". 
(c) DEFINITION OF MAJOR DRUG-TRANSIT COUNTRY.—Section 
481(iX5) of that Act (22 U.S.C. 2291(iX5)) is amended— 
(1) by inserting "or" at the end of subparagraph (A); 
(2) by striking out "or" at the end of subparagraph (B) 
and inserting in lieu thereof a period; and 
(3) by striking out subparagraph (C). 
Subtitle C—^Money Laundering 
Enforcement Improvements 
SEC. 1S21. JURISDICTION IN CIVIL FORFEITURE CASES. 
Section 1355 of title 28, United States Code, is amended— 
(1) by inserting "(a)" before "The district"; and 
(2) by adding at the end the following new subsections: 
"(b)(1) A forfeiture action or proceeding may be brought in— 
"(A) the district court for the district in which any of 
the acts or omissions giving rise to the forfeiture occurred, 
or 
"(B) any other district where venue for the forfeiture action 
or proceeding is specifically provided for in section 1395 of 
this title or any other statute. 
"(2) Whenever property subject to forfeiture imder the laws 
of the United States is located in a foreign coimtry, or has been 
detained or seized pursuant to legal process or competent authority 
of a foreign government, an action or proceeding for forfeiture 
may be brought as provided in paragraph (1), or in the United 
States District court for the District of Columbia. 
"(c) In any case in which a final order disposing of property 
in a civil forfeiture action or proceeding is appealed, removal of 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4063 
the property by the prevailing party shall not deprive the court 
of jurisdiction. Upon motion of the appealing paiiy, the district 
covixt or the court of appeals shall issue any order necessa^ to 
preserve the right of the appealing party to the full value of the 
property at issue, including a stay of the judgment of the district 
court pending appeal or requiring the prevailing party to post 
an appeal bond. 
"(d) Any court with jurisdiction over a forfeiture action pursucuit 
to subsection G)) may issue and cause to be served in any other 
district such process as may be required to bring before the court 
the property that is the subject of the forfeiture action.". 
SEC. 1522. CIVIL FORFEITURE OF FUNGIBLE PROPERTY. 
(a) IN GENERAL.—Chapter 46 of title 18, United States Code, 
is amended by adding at the end the following new section: 
*
*
§ 984. Civil forfeiture of fungible property 
"(a) This section shall apply to any action for forfeiture brought 
by the Government in connection with any offense under section 
1956, 1957, or 1960 of this title or section 5322 of title 31, United 
States Code. 
"(bXD In any forfeiture action in rem in which the subject 
property is cash, monetaiy instruments in bearer form, funds depos-
ited in an account in a financial institution (as defined in section 
20 of this title), or other fungible property— 
"(A) it shall not be necessary for the Government to identify 
the specific property involved in the ofiTense that is the basis 
for the forfeiture; and 
"(B) it shall not be a defense that the property involved 
in such an offense has been removed and replaced by identical 
property. 
"(2) Except as provided in subsection (c), any identical property 
found in the same place or account as the property involved in 
the offense that is the basis for the forfeiture shall be subject 
to forfeiture under this section. 
''(c) No action pursuant to this section to forfeit property not 
traceable directly to the offense that is the basis for the forfeiture 
may be commenced more than 1 year from the date of the offense. 
"(dXD No action pursuant to this section to forfeit property 
not traceable directly to the offense that is the basis for the forfeit-
ure may be taken against fimds held by a financial institution 
in an interbank account., imless the financial institution holding 
the account knowingly engaged in the offense. 
"(2) As used in this si^ction, the term 'interbank account' means 
an accoiint held by one financial institution at another financial 
institution primarily for the purpose of faciliteting customer trans-
actions.". I 
(b) CONFORMING AMENDMENT.—^The chapter analysis for chap-
ter 46 of title 18, United Stetes Code, is amended by adding at 
the end the following: 
'^84. Civil forfeiture of fungible property.". 
SEC. 1
5
2
3
. 
PROCEDURE 
FOR 
SUBPOENAING 
BANK 
RECORDS. 
(a) IN GENERAL.—Chapter 46 of title 18, United Stetes Code, 
is amended by adding at the end the following new section: 
106 STAT. 4064 
PUBLIC LAW 102-550—OCT. 28, 1992 
*
*
§ 986. Subpoenas for bank records 
"(a) At any time after the commencement of any action for 
forfeiture in rem brought by the United States under section 1956, 
1957, or 1960 of this title, section 5322 of title 31, United States 
Code, or the Controlled Substances Act, any party may request 
the Clerk of the Court in the district in which the proceeding 
is pending to issue a subpoena duces tecum to any financial institu-
tion, as defined in section 5312(a) of title 31, United States Code, 
to produce books, records and any other documents at any place 
designated by the requesting party. All parties to the proceeding 
shall be notified of the issuance of any such subpoena. The proce-
dures and limitations set forth in section 985 of this title shall 
apply to subpoenas issued under this section. 
Mail. 
"(b) Service of a subpoena issued pursuant to this section shall 
be by certified mail. Records produced in response to such a sub-
poena may be produced in person or by mail, common carrier, 
or such other method as may be agreed upon by the party requesting 
the subpoena and the custodian of records. The party requesting 
the subpoena may require the custodian of records to submit an 
affidavit certifying the authenticity and completeness of the records 
and explaining the omission of any record called for in the subpoena. 
"(c) Nothing in this section shall preclude any party from pursu-
ing any form of discovery pursuant to the Federal Rules of Civil 
Procedure.". 
(b) CONFORMING AMENDMENT.—The chapter analysis for chap-
ter 46 of title 18, United Stetes Code, is amended by adding at 
the end the following: 
"^SS. Subpoenas for bank records.". 
SEC. 1524. DELETION OF REDUNDANT AND INADVERTENTLY LIMIT. 
ING PROVISION IN 18 U.S.C. 1956. 
Section 1956(cX7XD) of title 18, United Stetes Code, is 
amended— 
(1) by striking "section 1341 (relating to mail firaud) or 
section 1343 (relating to wire fraud) affecting a financial institu-
tion, section 1344 (relating to bank fraud),"; and 
(2) by striking "section 1822 of the Mail Order Drug Para-
phernalia Control Act (100 Stet. 3207-51; 21 U.S.C. 857)" and 
inserting "section 422 of the Controlled Substances Act". 
SEC. 1525. STRUCTURING TRANSACTIONS TO EVADE CMIR REQUIRE-
MENT. 
(a) IN GENERAL.—Section 5324 of title 31, United Stetes Code, 
is amended— 
(1) by inserting "(a) DOMESTIC COIN AND CURRENCY TRANS-
ACTIONS.—" before "No person"; and 
(2) by adding at the end the following: 
"(b) INTERNATIONAL MONETARY INSTRUMENT TRANSACTIONS.-
No person shall, for the purpose of evading the reporting require-
ments of section 5316— 
"(1) fail to file a report required by section 5316, or cause 
or attempt to cause a person to fail to file such a report; 
"(2) file or cause or attempt to cause a person to file 
a report required under section 5316 that contems a material 
omission or misstetement of fact; or 
PUBLIC LAW 102-550—OCT. 28,1992 
106 STAT. 4065 
"(3) structure or assist in structuring, or attempt to struc-
ture or assist in structuring, any importation or exportation 
of 
monetary instruments.", 
(b) CONFORMING AMENDMENT.—Section 5321(aX4XC) of title 
31, United States Code, is amended by striking 'Smder section 
5317(dr. 
(c\ FoityKI'I'UHE ^
—
" 
(1) TITLE IS.—Section 981(aXlXA) of title 18, United States 
Code, is amended by striking "5324" and inserting ''5324(a)". 
(2) TITLE SI.—S<M:tion 5317(c) of title 31, United States 
Code, is amended by inserting after the first sentence "Any 
property, real or personal, involved in a transaction or 
attempted transaction in violation of section 5324(b), or any 
property traceable to such property, may be seized and forfeited 
to the United States (jovemment.". 
SEC. 1826. CLARIFICATiON OF DEFINITION OF FINANCIAL INSTITU-
TION. 
(a) SECTION 1956.—Section 1956(cX6) of title 18, United States 
Code, is amended by striking "and the regulations" and inserting 
"or the regulations". 
(b) SECTION 1957.—Section 1957(fXl) of title 18, United States 
C!ode, is amended by striking "financial institution (as defined in 
section 5312 of title 31)" and inserting "financial institution (as 
defined in section 1956 of this titleV. 
SEC. 1887. DEFINITION OF FINANCIAL TRANSACTION. 
(a) SECTION 1956.—Section 1956(c) of title 18, United States 
Code, is amended— 
(1) in paragraph (4XA)— 
(A) by inserting "or (iii) involving the transfer of title 
to any real property, vehicle, vessel, or aircraft," after 
"monetary instruments,"; 
(B) by striking "which in any way or degree afiTects 
interstate or foreign commerce,"; and 
(C) by insertmg "which in any way or degree affects 
interstate or foreign commerce" after "(A) a transaction"; 
and 
(2) in paragraph (3), by inserting "use of a safe deposit 
box," before "or any other payment". 
(b) SECTION 1957.—Section 1957(fXl) of title 18, United States 
Code, is amended by inserting ", including any transaction that 
would be a financial transaction under section 1956(cX4XB) of this 
title," before "but such term does not include". 
SEC. 1S28. OBSTRUCTING A MONEY LAUNDERING INVESTIGATION. 
Section 1510(bX3XBXi) of title 18, United States Code, is 
amended by striking "or 1344" and insertmg "1344, 1956, 1957, 
or chapter 53 of title 31". 
SEC. 1889. AWARDS IN MONEY LAUNDERING CASEa 
Section 524(cXlXB) of title 28, United States Code, is amended 
by inserting "or of sections 1956 and 1957 of title 18, sections 
5313 and 5324 of title 31, and section 60501 of the Internal Revenue 
Code of 1986" after "criminal drug laws of the United States". 
106 STAT. 4066 
PUBLIC LAW 102-550—OCT. 28, 1992 
SEC. 1S80. PENALTY FOR MONEY LAUNDEIUNGCONSPIRACIE& 
Section 1956 of title 18, United States Code, is amended by 
inserting at the end the following new subsection: 
"(g) Any person who conspires to commit any offense defined 
in this section or section 1957 shall be subject to the same penalties 
as those prescribed for the offense the commission of wnich was 
the object of the conspiraqr.". 
SEC. 1581. TECHNICAL AND CONFORMING AMENDBfENTS TO MONEY 
LAUNDERING PROVISION. 
(a) TRANSPORTATION.—Subsections (aX2) and (b) of section 1956 
of title 18, United States Code, are amended by striking 'ixanspor-
tation" each time such term appears and inserting "transportation, 
transmission, or transfer." 
(b) T
E
C
H
N
I
C
A
L CORRECTION.—Section 1956(aX3) of title 18, 
United States Code, is amended by striking "represented by a 
law enforcement officer" and inserting "represented". 
SEC. 15S2. PRECLUSION OF NOTICE TO POSSIHLE SUSPECTS OF EXIST-
ENCE OF A GRAND JURY SUBPOENA FOR BANK RECORDS 
IN MONEY LAUNDERING AND CONTROLLED SUBSTANCE 
INVESTIGATIONS. 
Section 1120(bXlXA) of the Right to Financial Privacnr Act 
of 1978 (12 U.S.C. 3420(bXlXA)) is amended by mserting before 
the semicolon "or crime involving a violation of the Controlled 
Substcuice Act, the Controlled Subistances Import and Export Act, 
section 1956 or 1957 of title 18, sections 5313, 5316 and 5324 
of title 31, or section 60501 of the Internal Revenue Code of 1986". 
SEC. 1883. ELIMINATION OF RESTRICTION ON DISPOSAL OF FOR^ 
FEITED PROPERTY BY THE DEPARTMENT OF THE TREAS-
URY AND THE POSTAL SERVICE. 
Section 981(e) of title 18, United States Code, is amended 
by strikii^ "The authority granted to the Secretary of the Treasury 
and the Postal Service pursuant to this subsection shall apply 
only to property that has been administratively forfeited.". 
SEC. 1584. NEW MONEY LAUNDERING PREDICATE OFFENSE& 
Section 1956(cX7XD) of title 18, United States Code, is 
amended— 
(1) by striking "or" before "section 16"; 
(2) by inserting "section 1708 (theft from the mail)," before 
"section 2113"; and 
(3) by inserting before the semicolon; ", any felony violation 
of section 9(c) of the Food Stamp Act of 1977 (relating to 
food stamp fraud) involving a quantity of coupons having a 
value of not less than $5,000, or any felony violation of the 
Foreign Corrupt Practices Act". 
SEC. 1585. AMENDMENTS TO THE BANK SECRECY ACT. 
(a) TITLE 31.—Titie 31, United States Code, is amended— 
(1) in section 5324, by inserting ", section 5325, or the 
regulations issued tiiereunder" after "section 5313(a)" each 
place such term appears; and 
(2) in section 5321(aX5XA), by inserting "or any person 
willfully causing" after "willfully violates". 
(b) FEDERAL DEPOSIT INSURANCE ACT.—Section 21()X1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1829b(jXl)) is amended 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4067 
by inserting ", or any person who willfully causes such a violation," 
after "gross negligence violates". 
(c) RECORDKEEPING.—Public Law 91>608 (12 U.S.C. 1951 et 
seq.) is amended— 
(1) in section 125(a), by inserting "or any person willfully 12 use 1955. 
causing a violation of the regulation," after "applies,"; and 
(2) in section 127, by inserting ", or willfully causes a 12 use 1957. 
violation or after "Whoever willfully violates". 
SEC. 1636. EXPANSION OF MONEY LAUNDEBING L
A
W TO COVER PRO-
CEEDS OF CERTAIN FOREIGN CBIMES. 
Section 1956(cX7XB) of title 18, United States Code, is 
amended— 
(1) by striking "involving the manufacture" and inserting 
the following: "involving— 
"(i) the manufacture"; and 
(2) by adding at the end the following: 
(ii) kidnaping, robbery, or extortion; or 
"(iii) fraud, or anv scheme or attempt to defraud, by 
or against a foreign Sank (as defined in paragraph 7 of 
section 1(b) of tiie International Banking Act of 1978;". 
Subtitle D—^Reports and Miscellaneous 
SEC. 1541. STUDY AND REPORT ON REIMBURSING FINANCIAL 
INSTITUTIONS AND OTHERS FOR PROVIDING FINANCIAL 
RECORDS. 
(a) STUDY REQUIRED.—^The Attorney General, in consultation 
with the Secretary of the Treasury and the Board of Giovemors 
of the Federal Reserve System and other appropriate banking re^-
latory agencies, shall conduct a study of the effect of amendmg 
the Right to Financial Privacy Act of 1978 by allowing reimburse-
ment to financial institutions for assembling or providmg financial 
records on corporations and other entities not currently covered 
^ 
under section 1115(a) of such Act. The study shall also include 
ansdysis of the effect of allowing nondepositor ucensed transmitters 
of funds to be reimbursed to u e same extent as financial institu-
tions under that section. 
(b) REPORT.—Before the end of the 180-day period beginning 
on the date of enactment of this Act, the Attorn^ Genersu shall 
submit a report to the Congress on the results of the study con-
ducted pursuant to subsection (a). 
SEC. 1542. REPORTS OF INFORMATION REGARDING SAFETY AND 12 USe 
SOUNDNESS OF DEPOSITORY INSTTTUTIONa 
1831m-l. 
(a) REPORTS TO APPROPRIATE FEDERAL BANKING AGENCIES.— 
(1) IN GENERAL.~The Attorney General, the Secretary of 
the Treasury, and the head of any other agency or instrumental-
ity of the United Stetes shall, unless otherwise prohibited by 
law, disclose to the appropriate Federal banking agency any 
information that the Attorney General, the Secretcury of the 
Treasury, or such agency head believes raises significant con-
cerns regarding the safety or soundness of any depository 
institution doing business in the United Stetes. 
(2) EXCEPTIONS.— 
(A) INTELUGENCE INFORMATION.— 
106 STAT. 4068 
PUBLIC LAW 102-550—OCT. 28, 1992 
(i) IN GENERAL.—The Director of Central Intel-
ligence shall disclose to the Attorney General or the 
Secretary of the Treasury any intelligence information 
that would otherwise be reported to an appropriate 
Federal banking agenpy pursuant to paragraph (1). 
After consultation with the Director of Central Intel-
ligence, the Attorney General or the Secretary of the 
Treasury, shall disclose the intelligence information 
to the appropriate Federal banking agency. 
(ii) PROCEDURES FOR RECEIPT OF INTELUGENCE 
I
N
F
O
R
M
A
T
I
O
N
.
—
^
E
a
c
h appropriate Federal banking 
agency, in consultetion with the Director of Centr£u 
Intelligence, shall esteblish procedures for receipt of 
intelligence information that are adequate to protect 
the intelligence information. 
(B) CRIMINAL INVESTIGATIONS, SAFETY OF GOVERNMENT 
I
N
V
E
S
T
I
G
A
T
O
R
S
, I
N
F
O
R
M
A
N
T
S
, A
N
D WITNESSES.—If the Attor-
ney General, the Secretary of the Treasury or their respec-
tive designees determines that the disclosure of information 
pursuant to paragraph (1) may jeopardize a pending civil 
investigation or litigation, or a pending criminal investiga-
tion or prosecution, may result in serious bodily ii\}ury 
or death to Government employees, informante, witnesses 
or their respective families, or may disclose sensitive inves-
tigative techniques and methods, the Attorney General or 
the Secretary of the Treasury shall— 
(i) provide the appropriate Federal banking agency 
a description of the information that is as specific 
as possible without jeopardizing the investigation, 
litigation, or prosecution, threatening serious bodily 
iiyiuy or death to Government employees, informants, 
or witnesses or their respective families, or disclosing 
sensitive investigation techniques and methods; and 
(ii) permit a full review of the information by the 
Federal banking agency at a location and under proce-
dures that the Attorney Greneral determines will ensure 
the effective protection of the information while permit-
ting the Federal banking agency to ensure the safety 
and soundness of any depository institution. 
(C) GRAND JURY INVESTIGATIONS; CRIMINAL PROCE-
DURE.—^Paragraph (1) shall not— 
(i) apply to the receipt of information by an agency 
or instrumentelity in connection with a pending grand 
jury investigation; or 
(ii) be construed to require disclosure of informa-
tion prohibited by rule 6 of the Federal Rules of Crimi-
nal Procedure, 
(b) PROCEDURES FOR RECEIPT OF DISCLOSURE REPORTS.— 
(1) IN GENERAL.—Within 90 days after the date of enact-
ment of this Act, each appropriate Federal banking agency 
shall esteblish procedures for receipt of a disclosure report 
by an agency or instrumentelity made in accordance with sub-
section (a)(1). The procedures esteblished in accordance with 
this subsection shall ensure adequate protection of information 
disclosed, 
including 
access 
control 
and 
information 
accountebility. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4069 
(2) PROCEDURES IEIELATED TO EACH DISCLOSURE REPORT.— 
Upon receipt of a report in accordance with subsection (aXD, 
the appropriate Federal banking agency shall— 
(A) consiilt with the agency or instrumentality that 
made the disclosure regarding the adequacy of the proce-
dures established pursuant to paragraph (1), and 
(B) adjust the procedures to ensure adequate protection 
of the information, disclosed. 
(c) EFFECT ON AGENCIES.—^This section does not impose an 
affirmative duty on the Attorney General, the Secretary of the 
Treasury, or the head of any agency or instrumentality of the 
United States to collect new or to review existing information. 
(d) DEFINITIONS.—For purposes of this section, the terms 
"appropriate Federal banldng agency" and "depository institution" 
have the same meanings as in section 8 of the Federal Deposit 
Insurance Act. 
(e) REPORT.—^The Attorney General and the Secretary of the 
Treasury shall report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Banking, Finance 
and Urban Affairs of the House of Representatives, not later than 
90 days after the end of each calendar year on their utilization 
of the exceptions provided in subsection (aXlXB). 
SEC. 1643. IMMUNITY. 
Section 6001(1) of title 18, United States Code, is amended 
by inserting "the Board of Governors of the Federal Reserve Sys-
tem," after ^he Atomic Energy Commission,". 
SEC. 1544. INTERAGENCY INFORMATION SHARING. 
Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 
1821) is amended by adding at the end the following new subsection: 
"(t) AGENCIES MAY SHARE INFORMATION WITHOUT WAIVING 
PRIVILEGE.— 
"(1) IN GENERAL.—^A covered agency shall not be deemed 
to have waived any privilege applicable to any information 
by transferring that information to or permitting that informa-
tion to be used by— 
"(A) any other covered agency, in any capacity; or 
"(B) any other agency of the Federal Grovemment (as 
defined in section 6 of title 18, United States Code). 
"(2) DEFINITIONS.—For purposes of this subsection: 
"(A) COVERED AGENCY.—The term 'covered agency* 
means any of the following: 
"(i) Any appropriate Federal banking agency, 
"(ii) The Resolution Trust Corporation, 
"(iii) The Farm Credit Administration, 
"(iv) 
The 
Farm 
Credit 
System 
Insurance 
Corporation. 
"(v) The National Credit Union Administration. 
"(B) PRIVILEGE.—^The term 'privilege* includes any 
work-product, attorney-client, or other privilege recognized 
imder Federal or State law. 
"(3) RULE OF CONSTRUCTION.—Paragraph (1) shall not be 
construed as implying that any person waives any privilege 
applicable to any information becaiise paragraph (1) does not 
apply to the transfer or use of that information.". 
106 STAT. 4070 
PUBLIC LAW 102-550—OCT. 28, 1992 
Subtitle E—Counterfeit Deterrence 
Counterfeit 
Deterrence 
Act of 1992. 
18 use 471 
note. 
SEC. 15S1. SHORT TITLE. 
This subtitle may be cited as the "Counterfeit Deterrence Act 
of 1992". 
SEC. 15S2. INCREASE IN PENALTIEa 
Section 474 of title 18, United States Code, is amended— 
(1) by inserting "(a)" before "Whoever" the first time it 
appears; 
(2) by striking "United States; or" at the end of the sixth 
undesignated paragraph and inserting "United States—**; 
(3) by striking the seventh undesignated paragraph; 
(4) by amendfing the last undesignated paragraph to read 
as follows: 
"Is guilty of a class C felony."; and 
(5) by adding at the end tiiereof the following: 
"(b) For purposes of this section, the terms 'plate, 'stone', 'thing^, 
or 'other thing* includes any electronic method used for the acquisi-
tion, recording, retrieval, transmission, or reproduction of any 
obligation or other security, unless such use is authorized by the 
Secretary of the Treasury. The Secretary shall establish a system 
(pursuant to section 504) to ensure that the legitimate use of 
such electronic methods and retention of such reproductions by 
businesses, hobb3dsts, press and others shall not be imduly 
restricted.". 
SEC. 1563. DETERRENTS TO COUNTERFEITING. 
(a) IN GENERAL.—Chapter 25 of title 18, United States Code, 
is amended by inserting after section 474 the following new section: 
''§474A. Deterrents to counterfeiting of obligations and 
securities 
"(a) Whoever has in his control or possession, after a distinctive 
paper has been adopted by the Secretaiy of the Treasury for the 
obligations and other securities of the IJnited States, anv similar 
paper adapted to the making of any such obligation or other secu-
rity, except imder the authority of the Secretary of the Treasury, 
is guilty of a class C felony. 
"(b) Whoever has in his control or possession, after a distinctive 
coimterfeit deterrent has been adopted by the Secretary of the 
Treasury for the obligations and other securities of the United 
States by publication in the Federal Register, any essentially iden-
tical feature or device adapted to the m ^ n g of any such obligation 
or security, except under the authority of the Secretary of the 
Treasury, is guilty of a class C felony. 
"(c) As used in this section— 
"(1) the term 'distinctive paper* includes any distinctive 
medium of which currency is made, whether or wood pulp, 
rag, plastic substrate, or other natural or artificial fibers or 
materials; and 
"(2) the term 'distinctive coiuiterfeit deterrent' includes any 
ink, watermark, aeal, security thread, optically variable device, 
or other feature or device; 
"(A) in which the United States has an exclusive prop-
erty interest; or 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4071 
"(B) which is not otherwise in commercial use or in 
the public domain and which the Seo^tary designates as 
being necessary in preventing the counterfeiting of obliga-
tions or other securities of the United States.", 
(b) CHAPTER ANALYSIS.—^The chapter analysis for chapter 25 
of title 18, United States Code, is amended by adding after the 
item for section 474 the following: 
''474A. Deterrents to counterfeiting of obligations and securities.''. 
SEC. 1664. REPRODUCTIONS OF CURRENCY. 
Section 504 of title 18, United States Code, is amended— 
(1) in paragraph (IXD), by striking the comma at the 
end thereof and inserting a period; 
(2) in paragraph (I)— 
(A) by striking "for philatelic" from the text following 
subparagraph (D) and aU that follows through "albums). , 
and 
(B) by adding at the end the following new sentence: 
The Secretary of the Treasury shall prescribe regulations to Regulations. 
permit color illustrations of such currency of the United States 
as the Secretary determines may be appropriate for such 
purposes.". 
(3) by redesignating paragraph (2) as paragraph (3) and 
inserting after paragraph (1) the following new paragraph: 
"(2) The provisions of this section sh^l not permit the 
reproduction of illustrations of obligations or other securities, 
by or through electronic methods used for the acquisition, 
recording, retrieval, transmission, or reproduction of anv obliga-
tion or other security, unless such use is authorized by the 
Secretary of the Treasury. The Secretary shall establish a sys-
tem to ensure that the legitimate use of such electronic methods 
and retention of such reproductions by businesses, hobbyists, 
press or others shall not be unduly restricted."; and 
(4) in paragraph (3), as redesignated by paragraph (3) 
of this subsection, by striking "but not for advertising purposes 
except philatelic advertising, . 
Subtitle F—^Miscellaneous Provisions 
SEC. 1661. CIVIL MONEY PENALTIES. 
(a) IN GENERAL.—Section 5321(aX6) of title 31, United States 
Code, is amended to read as follows: 
"(6) NEGUGENCE.— 
"(A) IN GENERAL.—The Secretary of the Treasury may 
impose a civil money penalty of not more than $500 on 
any financial institution wluch negligently violates any 
provision of this subchapter or any regulation prescribed 
under this subchapter. 
"(B) PATTERN O
F N
E
G
L
I
G
E
N
T AonviTY.—If any financial 
institution engages in a pattern of negligent violations 
of any provision of this subchapter or any regulation 
prescribed under this subchapter, the Secretary of the 
Treasury may, in addition to any penalty imposed under 
subparagraph (A) with respect to any such violation, impose 
a civil money penalty of not more than $50,000 on the 
financial institution.". 
106 STAT. 4072 
PUBLIC LAW 102-550—OCT. 28, 1992 
31 use 5321 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
^°^- 
shall apply with respect to violations conmiitted after the date 
of the enactment of this Act. 
SEC. 1S62. AUTHORITY TO ORDER DEPOSITORY INSTITUTIONS TO 
OBTAIN COPIES OF CTRS FROM CUSTOMERS WHICH ARE 
UNREGULATED BUSINESSES. 
Section 5326 of title 31, United States Code, is amended— 
(1) by redesignating subsection (b) as subsection (d); and 
(2) by inserting after subsection (a) the following new sub-
section: 
"(b) AUTHORITY TO ORDER DEPOSITORY INSTITUTIONS To OBTAIN 
REPORTS FROM CUSTOMERS.— 
"(1) IN GENERAL.—^The Secretary of the Treasury may, by 
regulation or order, require any depository institution (as 
denned in section 3(c) of the Federal Deposit Insurance Act)— 
"(A) to request any financial institution (other than 
a depository institution) which engages in any reportable 
transaction with the depository institution to provide the 
depository institution with a copy of any report filed by 
the financial institution under this subtitle with respect 
to any prior transaction (between such financial institution 
and any other person) which involved any portion of the 
coins or currency (or monetary instruments) which are 
involved in the reportable transaction with the depository 
institution; and 
"(B) if no copy of any repK)rt described in subparagraph 
(A) is received by the oepository institution in connection 
with any reportable transaction to which such subpara-
graph applies, to submit (in addition to any report required 
under this subtitle with respect to the reportable trans-
action) a written notice to the Secretary that the financial 
institution failed to provide any copy of such report. 
"(2) REPORTABLE TRANSACTION DEFINED.—For purposes of 
this subsection, the term ^reportable transaction' means any 
transaction involving coins or currency (or such other monetary 
instruments as the Secretary may describe in the re^ilation 
or order) the total amounts or denominations of wmch are 
equal to or greater than an amount which the Secretary may 
prescribe.". 
SEC. 1568. WmSTLEBLOWER PROTECTION FOR EMPLOYEES OF 
FINANCIAL INSTITUTIONS OTHER THAN DEPOSITORY 
INSTITUTIONa 
(a) IN GENERAL.—Subchapter II of chapter 53 of title 31, United 
States Code, is amended by mserting after section 5327 (as added 
by section 1511(a) of this title) the following new section: 
*
*
§ 5328. Whistleblower protections 
"(a) PRomBiTiON 
AGAINST 
DISCRIMINATION.—NO 
financial 
institution may discharge or otherwise discriminate against any 
employee with respect to compensation, terms, conditions, or privi-
leges of emplovment because the employee (or any person acting 
pursuant to the request of the employee) proviaed information 
to tlie Secretary of the Treasury, the Attorney General, or any 
Federal supervisory agency regarding a possible violation of any 
provision of this subchapter or section 1956, 1957, or 1960 of title 
18, or any regulation under any such provision, by the financial 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4073 
institution or any director, officer, or employee of the financial 
institution. 
*
X
b
) ENFORCEMENT.—^Any employee or former emplopree who 
believes that such employee has been discharged or discnminated 
against in violation of subsection (a) may me a civil action in 
the appropriate United States district court before the end of the 
2-year period beginning on the date of such discharge or 
discrimination. 
*Xc) REMEDIES.—^If the district court determines that a violation 
has occurred, the court may order the financial institution which 
committed the violation to— 
"(1) reinstate the employee to the employee's former 
position; 
"(2) pay compensatory damages; or 
"(3) take otner appropriate actions to remedy any past 
discrimination. 
"(d) LIMITATION.—^The protections of this section shall not apply 
to any employee who— 
"(1) deliberately causes or participates in the alleged viola-
tion of law or regulation; or 
"(2) knowingly or recklessly provides substantially false 
information to tiie S<K;retaiy, Uie Attorney General, or any 
Federal supervisory ^ency. 
"(e) COORDINATION WITH OTHER PROVISIONS OF LAW.—This 
section shall not apply with respect to any financial institution 
which is subject to section 33 of Uie Federal Deposit Insurance 
Act, section 213 of the Federal Credit Union Act, or section 21A(q) 
of the Home Owners' Loan Act (as added by section 251(c) of 
the Federal Deposit Insurance Corporation Improvement Act of 
1991).". 
(b) CLERICAL AMENDMENT.—^The table of sections for chapter 
53 of title 31, United States Code, is amended by inserting luter 
the item relating to section 5327 (as added by section 1511(c) 
of this Act) the following new item: 
"6328. Whistleblower protections.*. 
SEC. 1564. ADVISORY GROUP ON REPORTING REQUIREMENTa 
31 USC 5311 
(a) ESTABUSHMENT.—Not later than 90 davs afi^r the date 
of the enactment of this Act, the Secretary of the Treasury shall 
establish a Bank Secrecy Act Advisory Group consisting of rep-
resentatives of the Department of the Treasiur^, the Department 
of Justice, and the Office; of National Drug Control Policy and 
of other interested persons and financial institutions subject to 
the repK>rting requirements of subchapter II of chapter 53 of title 
31, United States Code, or section 6()50I of the Internal Revenue 
Code of 1986. 
(b) PURPOSES.—^The Advisory Group shall provide a means 
by which the Secretary— 
(1) informs private sector representatives, on a regular 
basis, of the ways in which the reports submitted pursuant 
to the requirements referred to in subsection (a) have been 
used; 
(2) informs private sector representatives, on a regular 
basis, of how information regarding suspicious financial trans-
actions provided voluntarily by financial institutions has been 
used; and 
106 STAT. 4074 
PUBLIC LAW 102-550—OCT. 28, 1992 
(3) receives advice on the manner in which the reporting 
requirements referred to in subsection (a) should be modified 
to enhance the ability of law enforcement agencies to use the 
information provided for law enforcement purposes. 
(c) INAPPUCABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— 
The Federal Advisory Committee Act shall not apply to the Bank 
Secrecy Act Advisory Group established pursuant to subsection 
(a). 
31 use 5311 
SEC. 1565. GAG FEASIBILnY STUDY OF THE FINANCIAL CRIMES 
"0^ 
ENFORCEMENT NETWORK. 
(a) STUDY REQUIRED.—The Comptroller General of the United 
States shall conduct a feasibility study of the Financial Crimes 
Enforcement Network (popularly referred to as "Fincen") estab-
Ushed by the Secretary of the IVeasury in cooperation with other 
agencies and departments of the United States and appropriate 
Federal banking agencies. 
(b) SPECIFIC I^QUIREMENTS.—^In conducting the study required 
under subsection (a), the Comptroller General shall examine and 
evaluate— 
(1) the extent to which Federal, State, and local govern-
mental and nongovernmental organizations are volimtarily 
providing information which is necessary for the system to 
be useful for law enforcement purposes; 
(2) the extent to which the operational guidelines estab-
lished for the system provide for the coordinated and efficient 
entry of information into, and withdrawal of information from, 
the system; 
(3) the extent to which the operating procedures established 
for the system provide appropriate standards or guidelines 
for determining— 
(A) who is to be given access to the information in 
the system; 
(B) what limits are to be imposed on the use of such 
information; and 
(C) how information about activities or relationships 
which involve or are closely associated with the exercise 
of constitutional rights is to be screened out of the system; 
and 
(4) the extent to which the operating procedures established 
for the system provide for the prompt verification of the 
accuracy and completeness of information entered into the sys-
tem and the prompt deletion or correction of inaccurate or 
incomplete information. 
(c) REPORT TO CONGRESS.—Before the end of the 1-year period, 
beginning on the date of the enactment of this Act, tlie Comptroller 
General of the United States shall submit a report to the Congress 
containing the findings and conclusions of the Comptroller Greneral 
in connection with the study conducted pursuant to subsection 
(a), together with such recommendations for legislative or adminis-
trative action as the Comptroller General may determine to be 
appropriate. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4075 
TITLE XVI—TECHNICAL CORRECTIONS 
OF BANKING LAWS 
Subtitle A—^Federal Deposit Insurance 
Corporation Improvement Act 
SEC. 1601. TABLE OF CONTENTS. 
Section 1 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 is amended to read as follows: 
'SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
"(a) SHORT TITLE.—This Act may be cited as the Tederal I2usci8ii 
Deposit Insiirance Corporation Improvement Act of 1991'. 
" 
"(b) TABLE OF CONTENTS.— 
"Sec. 1. Short title; table of contents. 
•TITLE I-SAFETY AND SOUNDNESS 
"Subtitle A—Deposit Insurance Funds 
"Sec. 101. Funding for the Federal deposit insurance funds. 
"Sec. 102. Limitation on outstanding borrowing. 
"Sec. 103. Repayment schedule. 
"Sec. 104. Recapitalizing the Bank Insurance Fund. 
"Sec. 105. Borrowing for BIF from BIF members. 
"Subtitle B—Supervisory Reforms 
"Sec. 111. Improved examinations. 
"Sec. 112. Independent annual audits of insured depository institutions. 
"Sec. 113. Assessments required to cover costs of examinations. 
"Sec. 114. Examination and supervision fees for national banks and savings 
associations. 
"Sec. 115. Application to FDIC required for insurance. 
"Subtitle C—^Accounting Reforms 
"Sec. 121. Accounting objectives, standards, and requirements. 
"Sec. 122. Small busmess and small farm loan information. 
"Sec. 123. FDIC property disposition standards. 
"Subtitle I)—^Prompt Corrective Action 
"Sec. 131. Prompt corrective action. 
"Sec. 132. Standards for safety and soundness. 
"Sec. 133. Conservatorship and receivership amendments to facilitate prompt cor-
rective action. 
"Subtitle E—Least-Cost Resolution 
"Sec. 141. Least-cost resolution. 
"Sec. 142. Federal Reserve discount window advtmoes. 
"Sec. 143. Early resolution. 
"Subtitle F—^Depository Institutions I 
lacking Federal Deposit Insurance 
"Sec. 151. Depository institutions lacking Federal deposit insurance. 
"Subtitle G—^Technical Corrections 
"Sec. 161. Technical corrections and clarifications. 
TITLE n—REGULATORY IMPROVEMENT 
"Subtitle A—Regulation of Foreign Banks 
"Sec. 201. Short title. 
"Sec. 202. Regulation of forei^ ]l>ank operations. 
"Sec. 203. Conduct and coordination of examinations. 
"Sec. 204. Supervisionof the representative offices of foreign banks. 
"Sec. 205. Reporting of stock loans. 
106 STAT. 4076 
PUBLIC LAW 102-550—OCT. 28, 1992 
"Sec. 206. Cooperation with 
foreign 
supervimra. 
"Sec. 207. .^mroval remiired for acquisition 1^ foreign banks of shares of United 
states banks. 
"Sec. 208. Penalties. 
"Sec. 209. Pbwers of agencies respecting applications, examinations, and other pro-
"Sec. 210. Clarification of managerial standards in Bank Hdding Company Act of 
1956. 
"Sec. 211. Standards and factors in the Home Owners' Loan Act 
"Sec. 212. AuthoriW of Federal banking agencies to enforce consumer statutes. 
"Sec. 213. Criminal penalty for violating the International Banking Act of 1978. 
"Sec. 214. Miscellaneous amendments to the International Banking: Act oi 1978. 
"Sec. 215. Study and report on subsidiaiy requirements for foreign nanks. 
"Subtitle B—Customer and Consumer Provisions 
"Sec. 221. Study on regulatory burden. 
"Sec. 222. Discussion of lending data. 
"Sec. 223. Enforcement of Equal Credit Opportunity Act 
"Sec. 224. Home Mortimge Disclosure Act 
•"'•'' 
"Sec. 225. Notice of safeguard exception. 
"Sec. 226. Delegated processing. 
"Sec. 227. Deposits at nonproprietary automated teller machines. 
"Sec. 228. Nonce of branch closure. 
"Subtitle C—Bank Enterprise Act 
"Sec. 231. Short title. 
"Sec. 232. Reduced assessment rate for deposits attrilmtable to lifeline accounts. 
"Sec. 233. Assessment credits for qualifying activities relating to distressed commu-
nities. 
"Sec. 234. Community development organizations. 
"Subtitle D—FDIC Property Disposition 
"Sec. 241. FDIC affordable housing program. 
"Subtitle E—Whistleblower Protections 
"Sec. 251. Additional whistleblower protections. 
"Subtitle F—Truth in Savings 
"Sec. 261. Short title. 
"Sec. 262. Findings and purpose. 
"Sec. 263. Disdoeureofmterest rates and terms of accounts. 
"Sec. 264. Account schedule. 
"Sec. 266. Disclosure requirements for certain accounts. 
"Sec. 266. Distribution of schedules. 
"Sec. 267. Payment of interest 
"Sec. 268. Periodic statements. 
"Sec. 269. Regulations. 
"Sec. 270. Administrative enforcement 
"Sec. 271. CivU liability. 
"Sec. 272. Credit unions. 
"Sec. 273. Effect on State law. 
"Sec. 274. Definitions. 
"TITLE m-PEDERALDEPOSrriNSURANCE REFORM 
"Subtitle A—Activities 
"Sec. 301. Limitations on brokered deposits and deposit solicitations. 
"Sec. 302. Risk-based assessments. 
"Sec. 303. Restrictions on insured State bank activities. 
"Sec. 304. Restrictions on real estate lending. 
"Sec. 305. Improving capital standards. 
\ 
"Sec. 306. SaWuards against insider abuse. 
., , > 
.;; 
"Sec. 307. FDIC back-up enforcement authority. 
"Sec. 308. Interbank liabilities. 
"Subtitle B—Coverage 
"Sec. 311. Deposit and pass-throu|^ insurance. 
"Sec. 312. Foreign deposits. 
"Sec. 313. Penalty for fSedse assessment reports. 
"Subtitle C—Demonstration Project and Studies 
"Sec. 321. Feasibility study on authorizing insured and uninsured deposit accounts. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4077 
"Sec. 322. Private reingurance study. 
TITLE IV—MISCELLANEOUS PROVISIONS 
"Subtitle A—Payment System Risk Reduction 
"Sec. 401. Findings and purpose. 
"Sec. 402. Definitions. 
"Sec. 403. Bilateral netting. 
"Sec. 404. Clearing organization netting. 
"Sec. 405. Preemption. 
"Sec. 406. Relationship to other payments systems. 
"Sec. 407. National emergencies. 
"Subtitle B—Right to Financial Privacy Act of 1978 
"Sec. 411. Amendments to the Right to Financial Privacy Act of 1978. 
"Subtitle C—^Final Settlement Payment Procedure 
"Sec. 416. Final settlement payment procedure. 
"Subtitle D—^Miscelhmeous Committees, Studies, and Reports 
"Sec. 421. Amendments relating to Federal Reserve Board reserve requirements. 
"Sec. 422. Permanent authorization of Credit Standards Advisory Committee. 
"Subtitle E:—^Utilization of Private Sector 
"Sec. 426. Utilization of private sector. 
"Sec. 427. Reporting. 
"Subtitle F—^Emergency Assistance for Rhode Island 
, 
"Sec. 431. Emergency loan guarantee. 
"Subtitle G—Qualified Thrift; Lender Test Improvements 
"Sec. 436. Short title. 
"Sec. 437. A4justment of compliance periods for purposes of qualified thrift lender 
test 
"Sec. 438. Increase in amount of liquid assets excludable 
firom 
portfolio assets. 
"Sec. 439. Additional investments included in definition of qualified thrift assets. 
"Sec. 440. Prudent diversification of assets. 
"Sec. 441. Consumer lending b}^ Federal savings associations. 
"Subtitle H—^Prohibition on Entering Secrecy Agreements and Protective Orders 
"Sec. 446. Prohibition on entering into secrecy agreements and protective orders. 
"Subtitle I—^Bank and Thrift Employee Provisions 
"Sec. 461. Continuation of health plan coverage in cases of failed financial institu-
tions. 
"Subtitle J—Sense of the Congress Regarding the Credit Crisis 
"Sec. 456. Credit crunch. 
"Subtitle K—Acquisition of Insolvent Savings Associations 
"Sec. 461. Acquisition of insolvent savings associations. 
"Subtitle L—Creditabilily of Service 
"Sec. 466. Creditability of service. 
"Subtitle M—Other Miscellaneous Provisions 
"Sec. 471. Providing services to insured depository institutions. 
"Sec. 472. Real estate appraisals. 
"Sec. 473. Emergency liquidify. 
"Sec. 474. Discrunination agamst reorganized debtors. 
"Sec. 475. Purchased mortgage servicing rights. 
"Sec. 476. Limitation on securities private ri^ts of action. 
"Sec. 477. Modified small business lending disclosure. 
"Sec. 478. Special insured deposits. 
"Subtitle N—Severability 
"Sec. 481. Severability. 
106 STAT. 4078 
PUBLIC LAW 102-550—OCT. 28, 1992 
TITLE V—DEPOSITORY INSTITUTION CONVERSIONS 
"Sec. 501. Mergers and acquisitions of insured depository institutions during con* 
version moratorium. 
"Sec. 502. Mergers, consolidations, and other acquisitions authorized.". 
SEC. 1602. TRANSFER AND REDESIGNATION OF SECTIONS WITH 
DUPUCATE SECTION NUBIBERS. 
(a) DuPUCATE SECTION 39.—The section of the Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) which was added by section 
228 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (relating to notice of branch closures and aesignated 
12 use i83ip, 
as section 39) is hereby— 
I83ir-i. 
Q^ transferred and inserted after section 41 of the Federal 
Deposit Insurance Act (as added by section 312 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991); and 
(2) redesignated as section 42. 
(b) DuPUCATE SECTION 40.—The section of the Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) which was added by section 
151 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (relating to depository institutions lacking Federal 
12 use I83it. 
deposit insurance and designated as section 40) is hereby— 
(1) transferred and inserted after section 42 of the Federal 
Deposit Insurance Act (as transferred and redesignated by sub-
section (a) of this section); and 
(2) redesignated as section 43. 
SEC. 1608. TECHNICAL CORRECTIONS RELATING TO TITLE I OF THE 
FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVE-
MENT ACT OF 1991. 
(a) AMENDMENTS RELATING TO SUBTITLE A — 
(1) The 1st sentence of section 7(bXlXAXiii) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(bXlXAXiii)) (as amended 
by section 104(b) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by inserting "rate*' before 
the period. 
(2) Section 14(dX2XD) of the Federal Deposit Insurance 
Act (12 U.S.C. 1824(dX2XD)) (as amended by section 105 of 
the Federal Deposit Insurance Corporation Improvement Act 
of 1991) is amended by striking '^ember^ and inserting 
"member*. 
(3) Effective on the effective date of the amendment made 
by section 302(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, section 7(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(c)) (as amended by such section 
302(a)) is amended— 
(A) by adding at the end, the pari^aph added to 
such section 7(b) (as in efiTect on the day before the effective 
date of such amendment) by section 103(bX2) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991; 
and 
(B) by redesignating such paragraph as paragraph (6). 
(b) AMENDMENTS RELATING TO SUBTITLE B.— 
(1) Section l(Kd) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(d)) (as added by section 111 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended— 
(A) in paragraph (5), by inserting "or the Resolution 
Trust Corporation" after "the Corporation" each place such 
term appears; 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4079 
(B) in p£u:agraph (5XB), by inserting a comma after 
'l>ank''; and 
(C) by striking paragraph (6). 
(2) Section 112 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1992 is amended— 
(A) by redesignating subsection (b) as subsection (c); 
and 
(B) by inserting after subsection (a) the following new 
subsection: 
"(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 3(r) 
of the Federal Deposit Insurance Act (12 U.S.C. 1813(r)) is amended 
to read as follows: 
'(r) STATE BANK SUPERVISOR.— 
*(1) IN GENERAL.—^The term "State bank supervisor" means 
any officer, agency, or other entity of any State which has 
primary regulatory authority over State banks or State savings 
associations in such State. 
*(2) INTERSTATE APPUCATION.—The State bank supervisors 
of more than 1 State may be the appropriate State bank super-
visor for any insured depository institution.'". 
(3) Section 36 of the Federal Deposit Insurance Act (as 
added by section 112 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991) is amended— 
(A) in subsection (bX2XAXiii), by striking "Corporation 
or" and inserting "Corporation and"; 
(B) in subsection (gX3XAXi), by striking "an appro-
priate" and inserting "any appropriate"; and 
(C) in subsection (gX5), by inserting "and each appro-
priate Federal banking agencjr" after "Corporation" each 
place such term appears. 
(4) Section 113(aX2) of the Federal Deposit Insurctnce Cor-
poration Improvement Act of 1991 is amended by striking 
"llKaXD" and inserting "111(a)". 
(5) The 1st sentence of the 4th imdesignated paragraph 
of section 5240 of the Revised Statutes (12 U.S.C. 482) (as 
amended by section 114 of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991) is amended by striking 
"duties" and inserting "office". 
(6) Section 115(b) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended by inserting 
"Section" before "4(b)". 
(c) AMENDMENT RELATING TO SUBTITLE C—Section 122 of the 
Federal Deposit Insurance Corporation Improvement Act of 1991 
is amended by redesignating subsection (d) as subsection (c). 
(d) AMENDMENTS RELATING TO SUBTITLE D.— 
(1) Section 38 of the Federal Deposit Insiu*ance Act (as 
added by section 131(a) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991) is amended— 
(A) in subsection (eX2XDXi), by striking "and" where 
such term appears after the semicolon; 
(B) in subsection (fK6), by striking "functional regulator 
(as defined in section 2(s) of the Bank Holding Company 
Act of 1956)" and insert "appropriate regulator^; 
(C) in subsection (g)(lXB), by striking "capitalized," 
and inserting "capitalized (but not well capitalized),"; and 
(D) in ttie heading of subsection (fK6), by striking 
"FUNCTIONAL" and inserting "OTHER". 
12 use 1831m 
note. 
12 u s e 1831m. 
12 use 1820. 
12 use 1814. 
12 use 1817 
note. 
12 use 1831o. 
106 STAT. 4080 
PUBLIC LAW 102-550—OCT. 28, 1992 
(2) Section 131(cX2XA) of the Federal Deposit Insurance 
12 use 1818. 
Corporation Improvement Act of 1991 is amenaed by inserting 
'%he 1st and 2d place such term appears" before the semicolon. 
(3) Section 8(iXl) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(iXl)) (as amended by section 131(cX2XA) of 
the Federal Deposit Insurance Corporation Improvement Act 
of 1991) is amended— 
(A) by inserting "or 39" after "38" each place such 
term appears; and 
(B5Dy striking "order imder this section,.or to review" 
and inserting "order under any such section, or to review". 
(4) Section 8(iX2XAXii) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(iX2XAXii)) (as amended by section 
131(cX2XB) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by striking "subsection 
(b)," and all that follows through the semicolon and inserting 
"subsection (b), (c), (e), (g), or (s) or any final order under 
section 38 or 39;". 
(5) Section 131(cX3) of the Federal Deposit Insurance Cor-
12 use 1813. 
poration Improvement Act of 1991 is amenaed by striking "add-
mg at the end" and inserting "inserting after subsection (x)". 
(6) Section 133(b) of the Federal Deposit Insurance Cor-
12 use 191. 
poration Improvement Act of 1991 is amended by striking "Sec-
tion 1 of the Act of June 30, 1876" and inserting "llie 1st 
section of the Act entitled 'An Act authorizing the appointment 
of receivers of national banking associations, ana for other 
purposes.' and approved June 30,1876". 
(7) The Act entitled "An Act authorizing the appointment 
of receivers of national banking associations, ana for other 
purposes." and approved June 30, 1876 (as amended by section 
133(b) of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991) is amended— 
12 use 191. 
(A) by redesignating section 1 as section 2 and by 
inserting after the enacting clause the following new 
section: 
National Bank 
"SECTION 1. SHORT TITLE. 
^^^eivers ip 
'This Act may be cited as the 'National Bank Receivership 
12 use 191 
Act*."; and 
^°*? 
(B) in section 2 (as amended by section 133(b) of the 
12 use 191. 
Federal Deposit Insurance Corporation Improvement Act 
of 1991 and redesignated by subparagraph (A) of this para-
graph), b^ striking "appoint the Federal Deposit Insurance 
Corporation as receiver for any national banking associa-
tion and inserting "appoint a receiver for any national 
bank (and such receiver shall be the Federal Deposit Insur-
ance Corporation if the national bank is an insured bank 
(as defined in section 3(h) of the Federal Deposit Insurance 
Act))". 
(8) Effective on the effective date of the amendment made 
by section 133(dXl) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991, section 5(dX2XA) of the Home 
Owners^ Loan Act (12 U.S.C. 1464(dX2XA)) (as amended by 
such section 133(dXl)) is amended by inserting a period at 
the end. 
(9) The paragraph designated as "(p)" of section 11 of 
the Federal Reserve Act (12 U.S.C. 248) (as added by section 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4081 
133(f) of the Federal Deposit Insurance Corporation Improve-
ment Act of 1992) is hereby redesignated as paragraph (o). 
(10) The heading of subtitle D of title I of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 is 1
0
5 Stat. 2253. 
amended to read as follows: 
^Subtitle D—^Prompt Corrective Action''. 
(11) The heading of section 131 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended 
to read as follows: 
<«£€. 181. P
R
O
M
P
T C
O
R
R
E
C
T
I
V
E ACnON.". 
(12) The heading of section 133 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended 1
^
0
5 Stat. 2270. 
by striking "
R
E
G
U
L
A
T
O
R
Y
" and inserting "coRRECnvE". 
(e) AMENDMENTS RELATING T
O SUBTITLE E.— 
(1) Section ll(dX5XDXiiiXI) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(dX5XDXiiiXI)) (as amended by section 
141(b) of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991) is amended b^ striking "institution described 
in paragraph (3XA)'' and mserting "insured depository 
institution". 
(2) The amendment made by section 142(c) of the Federal 1
2 U
S
C 2
4
8 
Deposit Insurance Corporation Improvement Act of 1991 (add- "
°
*
®
-
ing a paragraph at the end of section 11 of the Federal Reserve 
Act) shall be considered to have been executed before the 
amendment made by section 133(f) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991. 
(f) AMENDMENTS RELATING T
O SUBTITLE F.— 
(1) Section 151(b) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended— 
1
2 use I83it 
(A) in paragraph (1), by striking "section 40(aXl)*' and "
°
*
® 
inserting "section 43(8X1)"; and 
(B) m paragraph (3)— 
(i) by striking "'deposit',"; 
(ii) by striking "and"; 
(iii) by inserting ", and 'private deposit insurer*" 
before 'iiave the same meaning"; and 
(iv) by striking "section 40(f)" and inserting "sec-
tion 43(f)". 
(2) The heading of subtitle F of title I of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 is 1
0
5 Stat. 2282. 
amended to read as follows: 
^Subtitle F—^Depository Institutions 
Lacking Federal Deposit Insurance". 
SEC. 
1
6
0
4
. TECHNICAL 
CORRECTIONS 
RELATING 
TO 
TITLE U 
OF 
THE 
FEDERAL 
DEPOSITINSURANCE 
CORPORATION 
IMPROVE-
MENT 
ACT 
OF 
1
9
9
L 
(a) AMENDMENTS RELATING T
O SUBTITLE A.— 
(1) Section 7(eX6) of the International Banking Act of 1978 
(as added by section 202(a) of the Federal Deposit Insurance 
Corporation Improvement A
J
c
t of 1991) is amended— 
12 use 3105. 
106 STAT. 4082 
PUBLIC LAW 102-550—OCT. 28, 1992 
(A) in subparagraph (A), by striking "against which 
the Board or, in the case of an order issued under section 
4(i), the Comptroller of the Currency has issued an order 
under paragraph (1) or a refusal by such office or subsidi-
ary and inserting "against which— 
"(i) the Board has issued an order under paragraph 
-; . 
(l);or 
"(ii) the Comptroller of the Currency has issued 
an order under section 4(i), 
or a refusal by such office or subsidiary"; and 
(B) in subparagraph (B), by striking "order issued 
under paragraph (1)" and inserting "order referred to in 
subparagraph (A)". 
(2) Section 7(eX7) of the International Banking Act of 1978 
(as added by section 202(a) of the Federal Deposit Insurance 
12 use 3105. 
Corporation Improvement Act of 1991) is amended by striking 
"pubic" and inserting "pubHc". 
(3) Section l(XbX6XA) of the Federal Deposit Insurance 
Act (12 U.S.C. 1820(bX6XA)) (as amended by section 203(cX2) 
of the Federal Deposit Insurance Corporation Improvement 
Act of 1991) is amended by striking "paragraph (2)" and all 
that follows through the semicolon and inserting "paragraph 
(2), (3), (4), or (5);". 
(4) Section 10(b) of the International Banking Act of 1978 
(12 U.S.C. 3107(b)) (as amended by section 204 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended by striking "paragraphs (1), (2), and (3) of section 
7(d)" and inserting "section 7(e) . 
(5) Section 108(aXlXC) of the Truth in Lending Act (15 
U.S.C. 1607(aXlXC)) (as amended by section 212(b) of the Fed-
' 
eral Deposit Insurance Corporation Improvement Act of 1991) 
is amended by striking the period at the end and inserting 
a semicolon. 
(6) Section 621(bXlXC) of the Fair Credit Reporting Act 
(15 U.S.C. 1681s(bXlXC)) (as amended by section 212(c) of 
the Federal Deposit Insurance Corporation Improvement Act 
of 1991) is amended by striking the period at the end and 
inserting a semicolon. 
(7) Section 704(aXlXC) of the Equal Credit Opportunity 
Act (15 U.S.C. 1691c(bXlXC)) (as amended by section 212(d) 
of the Federal Deposit Insurtmce Corporation Improvement 
Act of 1991) is amended by striking the period at the end 
and inserting a semicolon. 
(8) Section 814(bXlXC) of the Fair Debt Collection Practices 
Act (15 U.S.C. 1691c(bXlXC)) (as amended by section 212(e) 
of the Federal Deposit Insurance Corporation Improvement 
15USC1692Z. 
Act of 1991) is amended by striking the period at the end 
and inserting a semicolon. 
(9) Section 18(fX2XA) of the Federal Trade Commission 
Act (15 U.S.C. 57a(0(2XA)) (as amended by section 212(gX2) 
of the Federal Deposit Insiirance Corporation Improvement 
Act of 1991) is amended by striking "divisions" and inserting 
"division". 
(10) Section 6 of the International Banking Act of 1978 
(12 U.S.C. 3104), as in effect on the day before the effective 
date of the amendment made by section 214(aX3) of the Federal 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4083 
Deposit Insurance Con)oration Improvement Act of 1991, is 
amended by striking subsection (c). 
(11) Section 6(c) of the International Banking Act of 1978 
(as added by section 214(aX3) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended— 
(A) in paragraph (1)— 
(i) by inserting "domestic retail" before "deposit 
accounts ; and 
(ii) by striking "$100,000," and inserting "$100,000 
and requiring deposit insurance protection,"; and 
(B) in paragraph (2)— 
(i) by striking "Deposit" and inserting "Domestic 
retail deposit"; and 
(ii) oy inserting "that require deposit insurance 
protection" after "$100,000". 
(12) Section 214(b) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended by inserting 
closing quotation marks and a 2d period at the end. 
(13) Section 7(j) of the International Banking Act of 1978 
(as added by section 214(b) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991) is amended by 
strikinjg Supervisory committee" and inserting "Supervisory 
Committee". 
(14) Section 215(aX9) of the Federal Deposit Insurance 
Cor^ration Improvement Act of 1991 is amended by striking 
"Umted States Banks" and inserting "banks chartered in the 
United States". 
(15) Section 224 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended by inserting "of 
1975" after "Disclosure Act". 
(b) AMENDMENTS RELATING TO SUBTITLE C — 
(1) Section 232(bXl) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended— 
(A) by striking "(9), and (10)" and inserting "and (8)"; 
and 
(B) by striking "(10), and (11)" and inserting "and 
(9)". 
(2) Section 233(a) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended by striking "sec-
tion 235" where such term appears in paragraphs (3) and 
(5) and inserting "section 234". 
(3) Section 7(dX5) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(dX4)) (as added by section 233(cXl) of the 
Federal Deposit Insurance Corporation Improvement Act of 
1991) is amended by striking "section 235" and inserting "sec-
tion 234". 
(c) AMENDMENTS RELATING TO SUBTITLE D.— 
(1) Section 241(b) of the Federal Deposit Insurance Cor-
pNoration Improvement Act of 1991 is amended by striking "sec-
tion 42" and inserting "section 40". 
(2) Subparagraj^} (B) and (E) of section ll(dX2) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(dX2)) (as 
amended by section 241(cXl) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) are each amended by 
strixing "section 42" and inserting "section 40". 
(3) Section 202(hX2) of the Housing Act of 1959 (12 U.S.C. 
1701q(hX2)) (as amended by section 241(cX2) of the Federal 
12 u s e 3104. 
12 use 3105. 
12 use 3105. 
12 use 3102 
note. 
12 u s e 2808. 
12 use 1817, 
1834. 
12 use 1834a. 
12 use 1831q 
note. 
106 STAT. 4084 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 4305. 
12 use 4304. 
12 u s e 4306. 
12 use 4308. 
12 u s e 4309. 
12 use 4310. 
12 u s e 4311. 
12 use 4312. 
12 use 4313. 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended by striking "section 42" and inserting "section 40". 
(d) AMENDMENTS RELATING TO SUBTITLE E.—Section 213(aX2) 
of the Federal Credit Union Act (12 U.S.C. 1790b(a)) (as amended 
by section 251(b) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended— 
(1) in subparagraph (A), by inserting "or" after "credit 
union"; and 
(2) in subparagraph (B), by striking "or employee" and 
all that follows through the semicolon and inserting "committee 
member, or employee of any credit union;". 
(e) AMENDMENTS RELATING TO SUBTITLE F.— 
(1) Section 266(e) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended by striking "on 
or with any regularly scheduled mailing posted or delivered 
within 180 days after pubUcation" and mserting "on or with 
the first regularly scheduled mailing sent after the end of 
the 6-month period beginning on the date of publication". 
(2) Subtitle F of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 is amended by striking "Act" and 
inserting "subtitle"— 
(A) each place such term appears in section 265; 
(B) in section 267(a); 
(C) the 1st place such term appears in section 267(c): 
(D) each place such term appears in section 269(aXl); 
(E) each place such term appears in section 269(aX3) 
(F) the 1st place such term appears in section 269(aX4): 
(G) m section 269(bXl); 
(H) each place such term appears in section 269(bX2); 
(I) the 1st place such term appears in section 270(a); 
(J) in section 270(bX2); 
(K) each place such term appears in section 27(Xc); 
(L) each place such term appears in section 271(a); 
(M) in paragraphs (1) and (2) of section 271(c); 
(N) in subsections (d), (g), (h) of section 271; 
(O) in paragraphs (1) and (2) of section 271(i): 
(P) the 1st place such term appears in section 272(a); 
(Q) in section 272(b); 
(R) in section 273; and 
(S) in the provision of section 274 which precedes para-
graph (1) of such section. 
(3) Section 270(bXl) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended by striking "this 
Act" and inserting "this subtitie". 
(4) The heading of paran'aph (1) of section 270(b) of the 
Federal Deposit Insurance Corporation Improvement Act of 
1991 is amended by striking "ACT" and inserting "
S
U
B
T
I
T
L
E
"
. 
SEC. leOS. TECHNICAL CORRECTIONS RELATING TO TITLE m OF THE 
FEDERAL DEPOSIT INSURANCE CORPORATION DIPROVE-
MENTACTOF1991. 
(a) AMENDMENTS RELATING TO SUBTITLE A ^ 
(1) Section 29 of the Federal Deposit Insurance Act (12 
U.S.C. 1831f) (as amended by section 301(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended— 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4085 
(A) in subsection (a), by striking "A insured" and insert-
ing "An insured"; and 
(B) in subsection (c), by striking "capitalized," and 
inserting "capitalized (but not well capitalized),". 
(2) Section 70i>X2) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(bX2)) (as amended by section 302(a) of the 
Federal Deposit Insurance Corporation Improvement Act of 
1991) is amended— 
(A) in subparagraph (D), by striking the comma after 
"members"; and 
(B) by adding at the end the following new subpara-
graph: 
"(H) BANK ENTERPRISE ACT REQUIREMENT.—The Cor-
poration shall design the risk-bascMl assessment system 
so that, insofar as uie system bases assessments, directly 
or indirectly, on deposits, the portion of the deposits of 
any insured depository institution which are attributable 
to lifeline accounts established in accordance with the Bank 
Enterprise Act of 1991 shall be subject to assessment at 
a rate determined in accordance with such Act.". 
(3) Effective on the efifective date of the amendment made 
by section 302(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, section 232(aXl) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 1834(aXl)) by striking "7(bX10)" and inserting 
"7(bX2XH)". 
(4) The subsection which was added to section 10 of the ^
2 use 1820. 
Federal Deposit Insuriuice Act by section 302(d) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 and 
designated as subsection (f) is hereby redesignated as sub-
section (g). 
(5) Section 302(e) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended— 
(A) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (3), (4), and (5), respectively; and 
12 use 1817, 
(B) by striking paragraph (1) and inserting the follow- ^
2 use 1815 
ing new paragraphs: 
"(1) in section 5(dX3XBXi)— 
"(A) by striking 'average assessment base' and insert-
ing 'deposits'; and 
"(B) by striking 'shall—* and all that follows through 
the period and inserting 'shall be treated as deposits which 
are insured by the Savings Association Insurance Fund.'; 
"(2) in section 5(dX3XBXii)— 
"(A) by striking 'average assessment base' and insert-
ing 'deposits'; and 
"(B) by striking 'shall—' and all that follows throi;^h 
the period and inserting 'shall be treated as deposits which 
are insured by the Bank Insurance Fund.'". 
(6) Effective on the effective date of the amendment made 
by section 302(eX4) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 (as so r«Mlesignated by paragraph 
((5XA) of this subsection), section 7(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)) (as amended by section 302(a) 
of the Federal Deposit Insurance Corporation Improvement 
Act of 1991) is amended by adding after paragraph (6) (as 
106 STAT. 4086 
PUBLIC LAW 102-550—OCT. 28, 1992 
transferred and so redesignated by section 1603(aX3) of this 
title) the following new paragraph: 
"(7) COMMUNITY ENTERPRISE CREDITS.—The Corporation 
shall allow a credit against any semiannual assessment to 
any insured depository institution which satisfies the require-
ments of the Community Enterprise Assessment Credit Board 
under section 233(aXl) of the Bank Enterprise Act of 1991 
in the amount determined by such Board by regulation.". 
(7) EfTective on the effective date of tiie amendment made 
by section 302(e)(4) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 (as so redesignated by paragraph 
(5XA) of this subsection), section 233 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 
1834a) is amended— 
(A) in subsection (aXlXA), by striking •'7(dX4)'' and 
inserting "7(bX7)''; 
(B) in subsection (a)(3), by striking "7(dX4)'' and insert-
ing "7(bX7)''; and 
(C) in subsection (eX2), by striking "made for purposes 
of the notification required imder section 7(dXlXB)'' and 
inserting "of the semiannual assessment to which such 
credit is applicable". 
(8) Section 24(eXlXB) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831a) (as added by section 303(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended to read as follows: 
"(B) meets applicable consumer disclosure require-
ments with respect to such insurance.". 
(9) The subsection of section 18 of the Federal Deposit 
Insurance Act which was added by section 305(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 and 
designated as subsection (o) (relating to periodic review of cap-
12 use 1828. 
ital standards) is hereby redesignated as subsection (p). 
(10) Section 22(hX6XBXi) of the Federal Reserve Act (12 
U.S.C. 375b) (as amended by section 306(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended by striking "and" after the semicolon and inserting 
"or". 
(11) Section 8(t) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(t)) (as added by section 307 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended— 
(A) in paragraph (2XB), by inserting "or institution-
affiliated party 
after "institution" each place such term 
appears; 
(B) in paragraph (2XC), by striking "institution's" the 
1st place such term appears; and 
(C) in paragraph (5), by inserting "or institution-affili-
ated party" after "depository institution". 
(b) AMENDMENTS RELATING TO SUBTITLE B.— 
(1) Section 7(bX6) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(bX6)) is amended— 
(A) by striking subparagraph (D), as added by section 
311(aX2XC) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991; and 
(B) by inserting after subparagraph (C) the following 
hew subparagraph: 
-
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4087 
"(D) any liability of the insured depository institution 
which is not treated as an insured deposit pursuant to 
section IKaXS).". 
(2) Effective on the effective date of the amendment made 
by section 302(b) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, section 7(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(c)) (as amended by such section 
302(b)) is amended— 
(A) by adding at the end, the paragraph added to 
such section 7(c) (as in effect on the day before the effective 
date of such amendment) b^ section 313(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991; 
(B) by redesignating such paragraph as paragraph (4); 
and 
(C) in paragraph (4) (as so redesignated by subpara-
graph (B) of tlus paragraph), by striking "paragrapn (1) 
or (2)" each place such term appears ana inserting para-
graph (1)". 
(3) Section 202(dX2) of the Federal Credit Union Act (12 
U.S.C. 1782(dX2)) (as amended by section 313(b) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is 
amended— 
(A) in subparagraph (C)— 
(i) by striking ''insured depository institution" and 
inserting "insured credit union ; 
(ii) by striking "or^ after "subsection (bXl)"; 
(iii) by stnking "Corporation" and inserting 
"Board"; and 
(iv) 1^ striking "assets of the institution" and 
inserting'^sets of the credit union"; 
(B) in subparagraph (D), by striking "Corporation" and 
inserting "Board"; and 
(C) in subparagraph (E)— 
(i) by striking "insured depository institution" and 
inserting "insured credit union ; and 
(ii) by striking "if the institution" and inserting 
"if the credit union . 
(c) AMENDMENT TO THE HEADING OF TITLE III.—The heading 
of title III of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991 is amended to read as follows: 
1
0
5 Stat. 2343. 
^^TITLE in—FEDERAL DEPOSIT 
INSURANCE REFORMS 
SEC. 1606. TECHNICAL CORRECTIONS RELATING TO TITLE IV OF THE 
FEDERAL DEPOSniNSURANCE CORPORATION IMPROVE-
MENT ACT OF 1991. 
(a) AMENDMENT RELATING TO SUBTITLE A--Section 402(14XB) 
of the Federal Deposit Insurance Corporation Improvement Act 
of 1991 is amended by striking "Federal commodities law" and 12USC4402. 
inserting "Federal law". 
(b) AMENDMENT RELATING TO SUBTITLE B.—Section 1112(fK2) 
of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3412(fX2)) 
(as amended by section 411(1) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended— 
59-194 O—93 
15:QL3(Pt. 5) 
106 STAT. 4088 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 1818 
and note. 
105 Stat. 2379. 
12 use 1467a. 
12 use 1467a. 
12 use 1467a. 
12 use 1821 
note. 
(1) by inserting a comma before 'Yor civil actions under 
section 951"; and 
(2) by inserting a comma after TJnited States Code". 
(c) AMENDMENT RELATING TO SUBTITLE C.--Section ll(dX4XA) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(dX4XA)) (as 
amended by section 416 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991) is amended by strildng "determina-
tions" and inserting ''determination''. 
(d) AMENDMENT RELATING TO SUBTITLE D.—The heading for 
section 422 of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991 is amended by striking ''BOARD'' and inserting 
"ADVISORY COMMnTEE". 
(e) AMENDMENT RELATING TO SUBTITLE F.—Section 431(aX2) 
of the Federal Deposit Insurance Corporation Improvement Act 
of 1991 is amended by inserting "(hereafter in uiis subsection 
referred to as the 'SecretaryT after "Secretary of the Treasury". 
_ (0 AMENDMENTS RELATING TO SUBTITLE G.— 
(1) Section 5(cX2XBXiii) of the Home Owners' Loan Act 
(12 U.S.C. 1464(cX2XB)) is amended to read as follows: 
"(iii) MONITORING.—If the Director permits any 
increased authority pursuant to clause (ii), the Director 
shall closely monitor the Federal savings association's 
condition and lending activities to ensure that the sav-
ings association carries out all authority under this 
paragraph in a safe and sound manner and complies 
with this subparagraph and all relevant laws and 
regulations.". 
(2) Section 5(cX2XC) of the Home Owners' Loan Act (12 
U.S.C. 1464(cX2XC)) is amended by striking the comma after 
"includiM". 
(3) The last sentence of section 5(cX2XD) of the Home 
Owners' Loan Act (12 U.S.C. 1464(cX2XB)) (as amended by 
section 441(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by inserting before the 
period the following: ", except that amounts in excess of 30 
percent of the assets ma;^ be invested only in loans which 
are made by the association directly to the original obligor 
and with respect to which the association does not pay any 
finder, referral, or other fee, directly or indirectly, to any third 
party". 
(4) Section 437 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended— 
(A) by striking "Section 10(mXlXB)" and inserting "(a) 
IN GENERAL.—Section 10(mXlXB)"; and 
(B) by adding at the end the following new subsection: 
"Oi)) TECHNICAL AND (JONFORMING AMENDMENTS.— 
"(1) Section 10(mXlXA) of the Home Owners' Loan Act 
(12 U.S.C. 1467(mXlXA)) is amended by striking '70 percent' 
and inserting '65 percent'. 
"(2) The first sentence of section 10(mX3XD) of the Home 
Owners' Loan Act (12 U.S.C. 1467(mX3XD)) is amended by 
striking Yor the preceding 2-year period' and inserting 'on a 
monthty average basis in 9 out of the preceding 12 months'.", 
(g) AMENDMENTS RELATING TO SUBTITLE I.— 
(1) Section 451(bX3) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 is amended by striking 
*ll(i)" and inserting "3(iX2)". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4089 
(2) Section 3(iX2) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(iX2)) is amended by striking "IKi)" and insert-
ing "IKn)". 
(h) AMENDMENTS RELATING T
O SUBTITLE K— 
(1) Section 461 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended by inserting "of 12 use 1843. 
1956" after '^ank Holding Company Act". 
(2) The heading of subtitle K of title IV of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 is 105 Stat. 2384. 
amended to read as follows: 
^Subtitle K—Acquisition of Insolvent 
Savings Associations'^. 
(i) AMENDMENTS RELATING T
O SUBTITLE M.— 
(1) Section 7(a) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)) is amended by redesignating the paragraph 
(9) which was added to such section oy section 474 of tne 
Federal Deposit Insurance Corporation Improvement Act of 
1991 as paragraph (10). , 
(2) Section 475(c) of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended to read as follows: 12 U
S
C 1
8
2
8 
"(c) EFFECTIVE DATE.—^This section shall apply after the end ^°^-
of the 60-day period beginning on the date of the enactment of 
this Act.". 
(3) Section 477 of the Federal Deposit Insurance Corpora-
tion Improvement Act of 1991 is amended by striking "Federal 12 U
S
C 251. 
Reserve Board" each place sudi term appears and inserting 
"Board of Governors of the Federal Reserve System". 
SEC. 1607. TECHNICAL CORRECTIONS RELATING TO TITLE V OF THE 
FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVE-
MENT ACT OF 1991. 
(a) AMENDMENT REIJVTING TO SECTION 501.—Section 5(dX3) 
of the Federal Deposit Insurance Act (12 U.S.C. 1815(dX3)) (as 
amended by section 501(a) of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991) is amended by adding at the 
end the following new subparagraph: 
"(K) BOARD DEFINED.—^For purposes of this paragraph, 
the term 'Board' (other than when such term appears in 
connection with a reference to the Board of Directors) 
means the Board of Governors of the Federal Reserve 
System.". 
(b) AMENDMENT RELATING TO SECTION 502.—Section 10 of the 
Home Owners' Loan Act (12 U.S.C. 1467a) is amended by 
redesignating subsection (t) (as added by section 502(a) of the 
Federal Deposit Insiu'ance Corporation Improvement Act of 1991) 
as subsection (s). 
SEC. leos. FEDERAL HOUSING FINANCE BOARD PRACTICE REQUIRED 
' TO CONFORM TO CONGRESSIONAL INTENT AND EXISTING 
L
A
W
. 
Section 2A(bX2) of the Federal Home Loan Bank Act (12 U.S.C. 
1422a(bX2)) is amended by adding at the end the following new 
subparagraph: 
"(D) CLARIFICATION OF STATUS.— 
106 STAT. 4090 
PUBLIC LAW 102-550—OCT. 28, 1992 
"(i) IN GENERAL.—^The directors appointed pursu-
ant to paragraph (IXB) shall serve on a full-time basis 
after December 31,1993. 
**(ii) RULE OF CONSTRUCTION.—Clause (i) shall not 
be construed as implying that any other position may 
be 
filled 
or held on a less than full-time basis.". 
12USC191 
SEC. 1608. EFFECTIVE DATE. 
(a) IN'GENERAL.—^Except as provided in subsection (b) or any 
other provision of this subtitle, the amendments made by this 
subtitle to the Federal Deposit Insurance Corporation Improvement 
Act of 1991, the Federal Deposit Insurance Act, and any other 
law shall take efiTect as if such amendments had been included 
in the Federal Deposit Insurance Corporation Improvement Act 
of 1991 as of the date of the enactment of such Act. 
(b) EFFECTIVE DATE OF CERTAIN AMENDMENTS.—In the case 
of any amendment made by this subtitle to any provision of law 
added or amended by the Federal Deposit Insurance Corporation 
Improvement Act of 1991 effective after December 19, 1992, the 
amendment made by this subtitle shall take effect on the effective 
date of the amendment made by the Federal Deposit Insurance 
Corporation Improvement Act of 1991. 
Subtitle B—^Resolution Trust Corporation 
SEC. 1611. TECHNICAL CORRECTIONS RELATING TO TITLE I OF THE 
RESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 1991. 
(a) AMENDMENT RELATING TO SECTION 101.—Section 21A(iX3) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(iX3)) is 
amended by inserting a comma after "necessary" and after '1t>illion''. 
(b) AMENDMENTS RELATING TO SECTION 102.— 
(1) Section ll(cX6XB) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(cX6XB)) (as amended by section 102 of 
the Resolution Trust Corporation Refinancing, Restructuring, 
and Improvement Act of 1991) is amended by striking "section 
5(dX2XC)'' and inserting "subparagraph (C) or (F) of section 
5(dX2r. 
(2) Effective 1 year after the date of the enactment of 
the Federal Deposit Insurance Corporation Improvement Act 
of 1991, section ll(cX6XB) of the Federal Deposit Insurance 
Act (as amended by paragraph (1) of this subsection) is amended 
by striking "subparagraph (C) or (F) of section 5(dX2)'' and 
inserting "subparagraph (A) or (C) of section 5(dX2)'*. 
(c) AMENDMENT RELATING TO SECTION 104.—Section 21(eX2) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441(eX2)) is 
amended by striking "Thrift Depositor Protection Refinance" and 
inserting "Refinancing, Restructuring, and Improvement". 
(d) AMENDMENTS RELATING TO SECTION 106.— 
(1) Section 21A(kX7) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(kX7)) (as amended b^ section 106(a) of the 
Resolution Trust Corporation Refinancmg, Restructuring, and 
Improvement Act of 1991) is amended by striking "quarter 
enmng on the last day of the month ending before the month 
in which such report is required to be submitted" and inserting 
"preceding calenoar quarter". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4091 
12 use 1441a 
note. 
(2) Section 21A(kX10) of the Federal Home Loan Bank 
Board (12 U.S.C. 1441a(kX10)) (as added by section 106(c) 
of the Resolution Trust Corporation Refinancing, Restructuring, 
and Improvement Act of 1991) is amended by mserting Thrift 
Depositor Protection" before "Oversight Board" each place such 
term appears. 
(3) Section 21A(kXll) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(kXll)) (as amended by section 106(d) 
of the Resolution Trust Corporation Refinancing, Restructuring, 
and Improvement Act of 1991) is amended— 
(A) in subparagraph (A), by inserting "Thrift Depositor 
Protection" before "Oversight Board"; and 
(B) in subparagraph (B)— 
(i) by striking "an employee" and inserting 
"employees"; and 
(ii) by striking "(jrovemment" and inserting 
"General". 
(4) Section 106(eX2) of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 
amended by striking "annual reports" and inserting "supple-
mental unaudited financial statements". 
SEC. 1612. TECHNICAL CORRECTIONS RELATING TO TITLE U OF THE 
RESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 1991. 
Section 21A(bX8XBXi) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(bX8)(BXi)) is amended by striking "Thrift Deposi-
tor Protection Refinance" each place such term appears and insert-
ing "Refinancing, Restructuring, and Improvement . 
SEC. 1613. TECHNICAL CORRECTIONS RELATING TO TITLE HI OF THE 
RESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 1991. 
(a) AMENDME^^^ RELATING TO SECTION 302.— 
(1) Section 302 of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 1
2 use I44ia. 
amended by striking subsection (c). 
(2) Section 21A(kX6)(AXvii) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(kX6XAXvii)) is amended by inserting 
"Thrift Depositor Protection" before "Oversight Bocurd's". 
(3) Section 21A(q) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(q)) (as added by section 251(c) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 and 
transferred by section 1614(aX5XE) of this subtitle) is amended 
by inserting "Thrift Depositor Protection" before "Oversight 
Board" each place such term appears. 
(4) The heading for section 21A(aX6) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(aX6)) is amended by striking 
"OVERSIGHT" and inserting "THRIFT DEPOSITOR PROTECTION 
OVERSIGHT". 
(5) The heading for paragraph (8) of subsection (n) of sec-
tion 21A of the Federal Home Loan Bank Act (12 U.S.C. 1441a) 
(as such subsection has been redesignated by section 314(3) 
of the Resolution Trust Corporation Refinancing, Restructuring, 
and Improvement Act of 1991) is amended by inserting "THRIFT 
DEPOSITOR PROTECTION" before "OVERSIGHT". 
106 STAT. 4092 
PUBLIC LAW 102-550—OCT. 28, 1992 
(6) The heading for section 21A of the Federal HomeLoan 
Bank Act (12 U.S.C. 1441a) is amended by inserting "THRIFT 
DEPOSITOR PROTECTION" before "OVERSIGHT BOARD". 
(7) The headings for sections 21B(cX8) and 21B(jX2) of 
the Federal Home Loan Act (12 U.S.C. 1441b(cX8) and 
1441B(jX2)) are each amended by inserting "
T
H
R
I
F
T D
E
P
O
S
I
T
O
R 
P
R
O
T
E
C
T
I
O
N
" before "OVERSIGHT". 
(8) The heading for section 21A(q) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(q)) (as added by section 251(c) 
of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 and transferred by section 1614(aX5XE) of this 
subtitle) is amended by inserting "THRIFT DEPOSITOR PROTEC-
TION" before "OVERSIGHT". 
(9) The heading for section 21B(kX7) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441b(kX7)) is amended by striking 
"OVERSIGHT" and inserting "THRIFT DEPOSITOR PROTECTION 
OVERSIGHT". 
(b) AMENDMENTS RELATING T
O SECTION 303.— 
(1) Section 303(2) of the Resolution Trust Corporation 
1
2 use 1441a. 
Refinancing, Restructuring and Improvement Act of 1991 is 
amended by striking the comma after "Corporation')". 
(2) Section 21A(aX2) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(aX2)) (as amended by section 303(2) of the 
Resolution Trust Corporation Refinancmg, Restructuring (uid 
Improvement Act of 1991 and the amendment made by para-
graph (1) of this subsection) is amended by striking the 2d 
period after "Act". 
(c) AMENDMENTS RELATING T
O SECTION 305.— 
(1) Section 21A(aX6XC) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(aX6XC)) is amended bv striking "para-
graph (8) of this subsection" and all that follows through the 
period at the end and inserting "paragraph (8)". 
(2) Section 21A(a) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(a)) is amended by redesignating paragraph 
(15) as paragraph (16) and inserting after paragraph (14) tiie 
following new paragraph: 
"(15) REPORTS ON ANY MODIFICATION TO ANY STRATEGY, 
POUCY, O
R GOAL.—If, pursuant to paragraph (6XA), the Thrift 
Depositor Protection Oversight Board reqmres the Corporation 
to modi^ any overall strategy, policy, or goal, such board shall 
submit, before the end of the 30-day period beginning on the 
date on which the board first notifies the Corporation of such 
requirement, to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives 
an explanation of the grounds which the board determined 
justified the review and the reasons why the modification is 
necessary to satisfy any such ground.". 
(d) AMENDMENTS RELATING T
O SECTION 307.— 
(1) Section 21A(aX10) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(aX10)) is amended— 
(A) by striking "4" and inserting "6"; 
(B) by adding at the end the following new sentence: 
"The Thrift Depositor Protection Oversight Board shall 
maintain a transcript of the board's open meetings."; and 
(C) in the heading, by striking "QUARTERLY" and insert-
ing "OPEN". 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4093 
(2) Section 21A(cX10) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(cX10)) is amended by striking the last 
sentence (as added by section 307(2) of the Resolution Trust 
Corporation Refinancing, Restructuring, and Improvement Act 
of 1991). 
(e) 
AMENDMENT 
RELATING 
TO 
SECTION 
311.—Section 
21A(bX8XA) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(b)(8XA)) (as amended by section 311 of the Resolution Trust 
Corporation Refinancing, Restructuring, and Improvement Act of 
1991) is amended by striking "IN G
E
N
E
R
A
L
.
—
*
* and all that follows 
through the 1st comma and inserting ''IN GENERAL.—Except for 
the cmef executive officer of the Corporation,". 
(f) AMENDMENTS RELATING TO SECTION 314.— 
(1) Section 21A(aX8) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(aX8)) (as amended by section 314(1XB) of 
the Resolution Trust (Corporation Refinancing, Restructuring, 
and Improvement Act of 1991) is amended by striking "AUTHOR-
ITY.—IN GENERAL.—The Corporation", and inserting "
A
U
T
H
O
R
-
ITY.—The Corporation". 
(2) Section 21A(oX2) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(oX2)) (as amended hy section 314(5) of the 
Resolution Trust Corporation Refinancmg, Restructuring, and 
Improvement Act of 1991) is amended by striking "includes" 
and all that follows through "any officer or employee of the 
Federal Deposit" and inserting "includes any officer or employee 
of the Federal Deposit". 
(g) 
AMENDMENT 
RELATING 
TO 
SECTION 
316.—Section 
21A(1X3XB) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(l)(3XB)) (as amended by section 316 of the Resolution Trust 
Corporation Refinancing, Restructuring, and Improvement Act of 
1991) is amended by striking "for that psuty of the filing" and 
inserting "for that party or the filing". 
(h) ADDITIONAL TECHNICAL CORRECTIONS.— 
(1) Paragraph (9) of section 21A(b) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(b)(9)) (as so redesignated 
by section 310 of the Resolution Trust Corporation Refinancing, 
Restructiiring, and Improvement Act of 1991) is amended— 
(A) in subparagraph (G) (as so redesignated by section 
314(2XBXi) of the Resolution Trust Corporation Refinanc-
ing, Restructuring, and Improvement Act of 1991), by strik-
ing "(llXAXiv)" and inserting "(lOXAXiv)"; and 
(B) in subparagraph (I) (as so redesignated by section 
314(2XBXi) of the Resolution Trust Corporation Refinanc-
ing, Restructuring, and Improvement Act of 1991), by strik-
ing "through its Board of Directors". 
(2) Paragraph (10) of section 21A(b) of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a(bX10)) (as so redesignated 
by section 310 of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) is amended— 
(A) in subparagraph (A), by striking "(10)" and insert-
ing "(9)"; and 
(B) in subparagraph (AXi), by striking "(12)" and insert-
ing "(11)". 
(3) Paragraph (llXEXi) of section 21A(b) of the Federal 
Home Loan Bank Act (12 U.S.C. 1441a(bXllXEXi)) (as so 
redesignated by section 310 of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991) is 
106 STAT. 4094 
PUBLIC LAW 102-550—OCT. 28, 1992 
12 use 1441a. 
12 use 1441a. 
12 use 1441a. 
12 use 1441a. 
12 use 1441a 
note. 
amended by striking 'its" and inserting ''the chief executive 
officer's". 
(4) Section 21A(cX7) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a(cX7)) is amended by striking "(bXllXA)" and 
inserting "(bXlOXA)". 
(5) Section 21A(dXlXBXii) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(dXlXBXu)) is amended by striking "para-
graph (2)" and inserting "paragraph (3)". 
(6) Section 21A(kX3XB) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441a(kX3XB)) is amended by striking "sub-
section (bXllXB)" and inserting "subsection (bXlOXB)". 
SEC. 1614. TECHNICAL CORRECTIONS RELATING TO TITLE IV OF THE 
RESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 1991. 
(a) AMENDMENTS RELATING TO INCORRECT DESIGNATIONS OF 
NEW SUBSECTIONS AND PARAGRAPHS.— 
(1) Section 401 of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 
amended by striking "after subsection (s) (as added by section 
227 of this Act)" and inserting "after subsection (p) (as so 
redesignated by section 314(3) of this Act)". 
(2) Section 402(a) of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 
amended by striking "301" and insertm^ "401". 
(3) Section 403 of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 
amended by striking "section 302" and inserting "section 402". 
(4) Section 404 of the Resolution Trust Corporation 
Refinancing, Restructuring, and Improvement Act of 1991 is 
amended by striking "section 303" and inserting "section 403". 
(5) Section 21A of the Federal Home Loan Bank Act (12 
U.S.C. 1441a) is amended— 
(A) by redesignating subsection (t) (as added by sec-
tion 401 of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) as sub-
section (r); 
(B) bv redesignating subsection (u) (as added by section 
402(a) of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) as sub-
section (s); 
(C) by redesignating subsection (v) (as added by section 
403 of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) as subsection 
(t); 
(D) by redesignatii^ subsection (w) (as added by sec-
tion 404 of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) as subsection 
(u); and 
(E) effective as of the date of the enactment of the 
Federal Deposit Insurance Corporation Improvement Act 
of 1991, by transferring and inserting subsection (q) (as 
added by section 251(c) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) alter subsection (p). 
(6) ror purposes of applying paragraph (13) of section 
21A(b) of the Federal Home Loan Bank Act, the amendment 
made by section 405 of the Resolution TWist Corporation 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4095 
Refinancing, Restructuring, and Improvement Act of 1991, shall 
be considered to have been executed before the redesignation 
of such paragraph by section 310 of such Act. 
(7) Effective as of the date of the enactment of the Federal 
Deposit Insurance Corporation Improvement Act of 1991— 
(A) section 47l of such Act is amended by striking 12 use I44ia. 
'Home Owners' Loan Act" and inserting Tederal Home 
Loan Bank Act"; and 
(B) subsection (q) of section 21A of the Federal Home 
Loan Bank Act (as added by section 471 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991, 
as amended by subparagraph (A) of this paragraph) is 12 use I44la. 
hereby redesignated as subsection (v). 
(b) OTHER TECHNICAL CORRECTIONS RELATING TO AMENDMENTS 
MADE BY TITLE IV.— 
(1) Subsection (tXD of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a) (as added by section 403 of the Resolution 
Trust Corporation Refinancing, Restructuring, and Improve-
ment Act of 1991 and redesignated b^ subsection (aXS) of 
this section) is amended by striking "minority interim capital 
assistance program estabUsned by the Oversight Board by regu-
lation pursuant to the strategic plan under subsection (a)" 
and inserting "the minority capital assistance program estab-
lished under subsection (uXl)". 
(2) Subsection (uXl) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441a) (as added by section 404 of the Resolution 
Trust Corporation Refinancing, Restructuring, and Improve-
ment Act of 1991 and redesi^pniated by subsection (aX5) of 
this section) is amended by striking "established by the Over-
sight Board by regulation pursuant to the strategic plan under 
suDsection (a) and inserting "administered by the Corporation 
pursuant to the policy statement entitled the 'Interim State-
ment of PoUcy Regarding Resolutions of Minority-Owned 
Depository Institutions' adopted by the Corporation on January 
30 1990". 
' (3) Subsections (tX3XB) and (uX5XB) of section 21A of 
the Federal Home Loan Bank Act (12 U.S.C. 1441a) (as added 
b
y
^ sections 403 and 404, respectively, of the Resolution Trust 
Corporation Refinancing, Restructunng, and Improvement Act 
of 1991 and redesignated by subsection (aX5) of this section) 
are each amended by striking "section 13(cX8r and inserting 
"section 13(fX8XB)". 
(4) Subsection (q) of section 21A of the Federal Home 
Loan Bank Act (12 U.S.C. 1441a) (as added by section 251(c) 
of the Federal Deposit Insurance Corporation Imi>rovement 
Act of 1991 and transferred by subsection (aX6) of tms section) 
is amended by inserting "Tluifl; Depositor I^tection" before 
"Oversight Board" each place such term appears. 
SEC. 161S. TECHNICAL CORBECTIONS RELATING TO TITLE V OF THE 
BESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 199L 
(a) AMENDMENTS RELATING TO SECTION 501.— 
(1) For purposes of applying paragraph (9) of section 21A(b) 
of the Federal Home Loan Bank Act, the amendment made 
by section 501(aXl) of the Resolution Trust Corporation 
lusfinancing. Restructuring, and Improvement Act of 1991 shall 
12 use 1441a 
note. 
106 STAT. 4096 
PUBLIC LAW 102-550—OCT. 28, 1992 
be considered to have been executed before the redesignation 
of subparagraph (K) of such paragraph by section 314(2XB) 
of such Act and the redesignation of such paragraph by section 
310 of such Act. 
(2) Section 21A(cX8XBXii) of the Federal Home Loan Bank 
Act (12 U.S.C. 
1441a(cX8XBXii)) (as added by section 
501(aX2XB) of the Resolution Trust Corporation Refinancing, 
Restructuring, and Improvement Act of 1991) is amended by 
striking "subchapter A and inserting "subchapter B". 
(b) AMENDMENT TO SECTION HEADING.—The heading for section 
501 of the Resolution Trust Corporation Refinancing, Restructuring, 
105 Stat. 1777. 
and Improvement Act of 1991 is amended to read as follows: 
*«£€. 501. CREDIT ENHANCEMENT.". 
SEC. 1616. TECHNICAL CORRECTIONS RELATING TO TITLE VI OF THE 
RESOLUTION 
TRUST 
CORPORATION 
REFINANCING, 
RESTRUCTURING, AND IMPROVEMENT ACT OF 1991. 
(a) 
AMENDMENTS 
RELATING 
TO 
SECTION 
607.—Section 
21A(cX3XE) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(cX3XE)) (as amended by section 607 of the Resolution Trust 
Corporation Refinancing, Restructuring, and Improvement Act of 
1991) is amended— 
(1) in clause (iXD, by striking "building property structure 
in which the units are located: Provided, That and inserting 
"property in which the units are located; and"; 
(2) in clause (iXII)— 
(A) by striking "shall be made available for occupancy" 
the 1st time such term appears; 
(B) by inserting "(including ver^ low-income families 
taken into account for purposes of subclause (I))" after 
^ery low-income families ; and 
(C) by striking "building or structure" and inserting 
. "property"; and 
(3) in clause (iiXII)— 
(A) by striking "building property structure" each place 
such term appears and inserting "propertjr"; and 
(B) by mserting "(including very low-income families 
taken into account for purposes of subdivision (a) of this 
subclause)" after "very low-income families" where such 
term appears in subdivision (b) of such clause. 
(b) REPEAL OF DUPLICATE PROVISION.—Title VI of the Resolu-
tion Trust Corporation Refinancing, Restructuring, and Improve-
12 use 1441a. 
ment Act of 1991 is amended by striking section 611. 
SEC. 1617. REPEAL OF TITLE CONSISTING OF AMENDMENTS DUPU-
CATED IN THE FEDERAL DEPOSIT INSURANCE CORPORA-
TION IMPROVEMENT ACT OF 1991. 
(a) IN GENERAL.—^Title VII of the Resolution Trust Corporation 
12 use 3345, 
Refinancing, Restructuring, and Improvement Act of 1991 is hereby 
3348 
repealed. 
12 use 3345 
(b) EFFECT OF REPEAL.—No amendments made by title VII 
»ote. 
Qf ^ e Resolution Trust Corporation Refinancing, Restructuring, 
- 
and Improvement Act of 1991 shall be deemed to have taken efiTect 
before the date of the enactment of this Act and the provisions 
of law amended by title VII shall continue in effect as if no such 
amendments had ijeen made by such title. 
PUBLIC LAW 102-550—OCT. 28, 1992 
106 STAT. 4097 
SEC. 1618. EFFECTIVE DATE. 
12 USC 1441 
Except as otherwise provided by a specific provision of this 
subtitle, the amendments made by tnis subtitle to the Resolution 
Trust Corporation Refinancing, Restructuring, and Improvement 
Act of 1991 and the Federal Home Loan Bank Act shall take 
efiiect as if such amendments had been included in the Resolution 
Trust Corporation Refinancing, Restructuring, and Improvement 
Act of 1991 as of the date of the enactment of su^ Act. 
Approved October 28, 1992. 
LEGISLATIVE HISTORY—H.R. 5334 (S. 3031): 
HOUSE REPORTS: Nos. 102-760 (Cbmm. on Banking, Finance and Urban Affairs) 
and 102-1017 (Coram, of Ck)nference). 
SENATE REPORTS: No. 102-332 accompanying S. 3031 (Comm. on Banking, Housing, 
and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 138 (1992): 
Aug. 5, considered and passed House. 
Sept. 10, S. 3031 considered and passed Senate; H.R. 5334, amended, passed 
in lieu. 
Oct. 5, House agreed to conference report. 
Oct. 8, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 28 (1992): 
Oct. 28, Presidential statement.