Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998
PL 105-65 (H.R.2158), enacted 10/27/1997

I l l STAT. 1344 
PUBLIC LAW 105-65—OCT. 27, 1997 
Oct. 27, 1997 
[H.R. 2158] 
Departments of 
Veterans Affairs 
and Housing and 
Urban 
Development, 
and Independent 
Agencies 
Appropriations 
Act, 1998. 
*Public Law 105-65 
105th Congress 
An Act 
Making appropriations for the Departments of Veterans Affairs and Housing and 
Urban Development, and for sundry independent agencies, commissions, corpora-
tions, and offices for the fiscal year ending September 30, 1998, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America 
in Congress assembled. That the 
following sums are appropriated, out of any money in the Treasury 
not otherwise appropriated, 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, 1998, and for other purposes, namely: 
TITLE I 
DEPARTMENT 
OF 
VETERANS 
AFFAIRS 
VETERANS BENEFITS ADMINISTRATION 
COMPENSATION AND PENSIONS 
(INCLUDING TRANSFERS OF FUNDS) 
For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as author-
ized by law (38 US.C. 107, chapters 11, 13, 18, 51, 53, 55, and 
61); pension benefits to or on behalf of veterans as authorized 
by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); 
and burial benefits, emergency and other officers' retirement pay, 
adjusted-service credits and certificates, payment of premiums due 
on commercial life insurance policies guaranteed under the provi-
sions of Article FV of the Soldiers' and Sailors' Civil Relief Act 
of 1940, as amended, and for other benefits as authorized by law 
(38 U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, 
and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 735; 
76 Stat. 1198); $19,932,997,000, to remain available until expended: 
Provided, That not to exceed $26,380,000 of the amount appro-
priated shall be reimbursed to "General operating expenses" and 
"Medical care" for necessary expenses in implementing those provi-
sions authorized in the Omnibus Budget Reconciliation Act of 1990, 
and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 
51, 53, and 55), the funding source for which is specifically provided 
as the "Compensation and pensions" appropriation: Provided fur-
ther, That such sums as may be earned on an actual qualifying 
patient basis, shall be reimbursed to "Medical facilities revolving 
fund" to augment the funding of individual medical facilities for 
•Note: This law contains items that were cancelled by the President pursuant to the Line 
Item Veto Act. For more information, see the Federal Register entry under "LEGISLATIVE 
HISTORY" at the end of this law. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1345 
nursing home care provided to pensioners as authorized by the 
Veterans' Benefits Act of 1992 (38 U.S.C. chapter 55). 
READJUSTMENT BENEFITS 
For the payment of readjustment and rehabiUtation benefits 
to or on behalf of veterans as authorized by 38 U.S.C. chapters 
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,366,000,000, 
to remain available until expended: Provided, That funds shall 
be available to pay any court order, court award or any compromise 
settlement arising from litigation involving the vocational training 
program authorized by section 18 of Public Law 98-77, as amended. 
VETERANS INSURANCE AND INDEMNITIES 
For military and naval insurance, national service life insur-
ance, servicemen's indemnities, service-disabled veterans insurance, 
and veterans mortgage life insurance as authorized by 38 U.S.C. 
chapter 19; 70 Stat. 887; 72 Stat. 487, $51,360,000, to remain 
available until expended. 
VETERANS 
HOUSING 
BENEFIT 
PROGRAM 
FUND 
PROGRAM 
ACCOUNT 
(INCLUDING 
TRANSFER 
OF 
FUNDS) 
For the cost of direct and guaranteed loans, such sums as 
may be necessary to carry out the program, as authorized by 38 
U.S.C. chapter 37, as amended: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in section 
502 of the Congressional Budget Act of 1974, as amended: Provided 
further, That during fiscal year 1998, within the resources available, 
not to exceed $300,000 in gross obligations for direct loans are 
authorized for specially adapted housing loans: Provided 
further, 
That during 1998 any moneys that would be otherwise deposited 
into or paid from the Loan Guaranty Revolving Fund, the Guaranty 
and Indemnity Fund, or the Direct Loan Revolving Fund shall 
be deposited into or paid from the Veterans Housing Benefit 
Program Fund: Provided further. That any balances in the Loan 
Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or 
the Direct Loan Revolving Fund on the effective date of this Act 
may be transferred to and merged with the Veterans Housing 
Benefit Program Fund. 
In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, $160,437,000, which may be trans-
ferred to and merged with the appropriation for "General operating 
expenses". 
EDUCATION LOAN FUND PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 
3698, as amended: Provided, That such costs, including the cost 
of modifying such loans, shall be as defined in section 502 of 
the Congressional Budget Act of 1974, as amended: Provided fur-
ther. That these funds are available to subsidize gross obligations 
for the principal amount of direct loans not to exceed $3,000. 
In addition, for administrative expenses necessary to carry 
out the direct loan program, $200,000, which may be transferred 
I l l STAT. 1346 
PUBLIC LAW 105-65—OCT. 27, 1997 
to and merged with the appropriation for "General operating 
expenses". 
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $44,000, as authorized by 38 
U.S.C. chapter 31, as amended: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in section 
502 of the Congressional Budget Act of 1974, as amended: Provided 
further, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans not to exceed $2,278,000. 
In addition, for administrative expenses necessary to carry 
out the direct loan program, $388,000, which may be transferred 
to and merged with the appropriation for "General operating 
expenses". 
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For administrative expenses to carry out the direct loan 
program authorized by 38 U.S.C. chapter 37, subchapter V, as 
amended, $515,000, which may be transferred to and merged with 
the appropriation for "General operating expenses". 
VETERANS HEALTH ADMINISTRATION 
MEDICAL CARE 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities; for furnishing, 
as authorized by law, inpatient and outpatient care and treatment 
to beneficiaries of the Department of Veterans Affairs, including 
care and treatment in facilities not under the jurisdiction of the 
Department; and furnishing recreational facilities, supplies, and 
equipment; funeral, burial, and other expenses incidental thereto 
for beneficiaries receiving care in the Department; administrative 
expenses in support of planning, design, project management, real 
property acquisition and disposition, construction and renovation 
of any facility under the jurisdiction or for the use of the Depart-
ment; oversight, engineering and architectural activities not charged 
to project cost; repairing, altering, improving or providing facilities 
in the several hospitals and homes under the jurisdiction of the 
Department, not otherwise provided for, either by contract or by 
the hire of temporary employees and purchase of materials; 
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901-
5902; aid to State homes as authorized by 38 U.S.C. 1741; adminis-
trative and legal expenses of the Department for collecting and 
recovering amounts owed the Department as authorized under 38 
U.S.C. chapter 17, and the Federal Medical Care Recovery Act, 
42 U.S.C. 2651 et seq.; and not to exceed $8,000,000 to fund cost 
comparison studies as referred 
to in 38 U.S.C. 8110(a)(5); 
$17,057,396,000, plus reimbursements: Provided, That of the funds 
made available under this heading, $570,000,000 is for the equip-
ment and land and structures object classifications only, which 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1347 
amount shall not become available for obligation until August 1, 
1998, and shall remain available until September 30, 1999: Provided 
further, That of the amount made available under this heading, 
not to exceed $5,000,000 shall be for a study on the cost-effective-
ness of contracting with local hospitals in east central Florida 
for the provision of non-emergent inpatient health care needs of 
veterans. 
In addition, in conformance with Public Law 105-33 establish-
ing the Department of Veterans Affairs Medical Care Collections 
Fund, such sums as may be deposited to such Fund pursuant 
to 38 U.S.C. 1729A may be transferred to this account, to remain 
available until expended for the purposes of this account. 
MEDICAL 
AND 
PROSTHETIC 
RESEARCH 
For necessary expenses in canying out programs of medical 
and prosthetic research and development as authorized by 38 U.S.C. 
chapter 73, to remain available until September 30, 1999, 
$272,000,000, plus reimbursements. 
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING 
EXPENSES 
For necessary expenses in the administration of the medical, 
hospital, nursing home, domiciliary, construction, supply, and 
research activities, as authorized by law; administrative expenses 
in support of planning, design, project management, architectural, 
engineering, real property acquisition and disposition, construction 
and renovation of any facility under the jurisdiction or for the 
use of the Department of Veterans Affairs, including site acquisi-
tion; engineering and architectural activities not charged to project 
cost; and research and development in building construction tech-
nology; $59,860,000, plus reimbursements. 
GENERAL POST FUND, NATIONAL HOMES 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $7,000, as authorized by Public 
Law 102-54, section 8, which shall be transferred from the "General 
post fund": Provided, 
That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the' 
Congressional Budget Act of 1974, as amended: Provided 
further. 
That these funds are available to subsidize gross obligations for 
the principal amount of direct loans not to exceed $70,000. 
In addition, for administrative expenses to carry out the direct 
loan programs, $54,000, which shall be transferred from the "Gen-
eral post fund", as authorized by Public Law 102-54, section 8. 
DEPARTMENTAL ADMINISTRATION 
GENERAL OPERATING EXPENSES 
For necessary operating expenses of the Department of 
Veterans Affairs, not otherwise provided for, including uniforms 
or allowances therefor; not to exceed $25,000 for official reception 
£md representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security 
guard services, and the Department of Defense for the cost of 
I l l STAT. 1348 
PUBLIC LAW 105-65—OCT. 27, 1997 
Contracts. 
Reports. 
overseas employee mail; $786,135,000: Provided, That funds under 
this heading shall be available to administer the Service Members 
Occupational Conversion and Training Act: Provided further, That 
none of the funds made available under this heading may be used 
for the relocation of the loan guaranty divisions of the Department 
of Veterans Affairs Regional Office in St. Petersburg, Florida to 
the Department of Veterans Affairs Regional Office in Atlanta, 
Georgia. 
NATIONAL CEMETERY SYSTEM 
For necessary expenses for the maintenance and operation of 
the National Cemetery System, not otherwise provided 
for, 
including uniforms or allowances therefor; cemeterial expenses as 
authorized by law; purchase of three passenger motor vehicles 
for use in cemeterial operations; and hire of passenger motor 
vehicles, $84,183,000. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General in 
caniying out the Inspector General Act of 1978, as amended, 
$31,013,000. 
CONSTRUCTION, MAJOR PROJECTS 
For constructing, altering, extending and improving any of the 
facilities under the jurisdiction or for the use of the Department 
of Veterans Affairs, or for any of the purposes set forth in sections 
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 
of title 38, United States Code, including planning, architectural 
and engineering services, maintenance or guarantee period services 
costs associated with equipment guarantees provided under the 
project, services of claims analysts, offsite utility and storm drainage 
system construction costs, and site acquisition, where the estimated 
cost of a project is $4,000,000 or more or where funds for a project 
were made available in a previous major project appropriation, 
$177,900,000, to remain available until expended: Provided, That 
the $32,100,000 provided under this heading in Public Law 104-
204 for the replacement hospital at Travis Air Force Base, Fairfield, 
California, shall not be obligated for that purpose but shall be 
available for any project approved by the Congress in the budgetary 
process: Provided further. That except for advance planning of 
projects funded through the advance planning fund and the design 
of projects funded thorough the design fund, none of these funds 
shall be used for any project which has not been considered and 
approved by the Congress in the budgetary process: Provided fur-
ther. That mnds provided in this appropriation for fiscal year 1998, 
for each approved project shall be obligated: (1) by the awarding 
of a construction documents contract by September 30, 1998; and 
(2) by the awarding of a construction contract by September 30, 
1999: Provided further. That the Secretary shall promptly report 
in writing to the Committees on Appropriations any approved major 
construction project in which obligations are not incurred within 
the time limitations established above: Provided further. That no 
funds from any other account except the "Parking revolving fund", 
may be obligated for constructing, altering, extending, or improving 
a project which was approved in the budget process and funded 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1349 
in this account until one year after substantial completion and 
beneficial occupancy by the Department of Veterans Affairs of the 
project or any part thereof with respect to that part only. 
CONSTRUCTION, MINOR PROJECTS 
For constructing, altering, extending, and improving any of 
the facilities under the jurisdiction or for the use of the Department 
of Veterans Affairs, including planning, architectural and engineer-
ing services, maintenance or guarantee period services costs 
associated with equipment guarantees provided under the project, 
services of claims analysts, offsite utility and storm drainage system 
construction costs, and site acquisition, or for any of the purposes 
set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 
8110, and 8122 of title 38, United States Code, where the estimated 
cost of a project is less than $4,000,000; $175,000,000, to remain 
available until expended, along with unobligated balances of pre-
vious "Construction, minor projects" appropriations which are 
hereby made available for any project where the estimated cost 
is less than $4,000,000: Provided, That funds in this account shall 
be available for: (1) repairs to any of the nonmedical facilities 
under the jurisdiction or for the use of the Department which 
are necessary because of loss or damage caused by any natural 
disaster or catastrophe; and (2) temporary measures necessary to 
prevent or to minimize further loss by such causes. 
PARKING REVOLVING FUND 
For the parking revolving fund as authorized by 38 U.S.C. 
8109, income from fees collected, to remain available until expended, 
which shall be available for all authorized expenses except oper-
ations and maintenance costs, which will be funded from "Medical 
care". 
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES 
For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter 
existing hospital, nursing home and domiciliary facilities in State 
homes, for furnishing care to veterans as authorized by 38 U.S.C. 
8131-8137, $80,000,000, to remain available imtil expended. 
GRANTS FOR THE CONSTRUCTION OF STATE VETERAN CEMETERIES 
For grants to aid States in establishing, expanding, or improv-
ing State veteran cemeteries as authorized by 38 U.S.C. 2408, 
$10,000,000, to remain available until expended. 
ADMINISTRATIVE PROVISIONS 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 101. Any appropriation for fiscal year 1998 for "Compensa-
tion 
and pensions", "Readjustment 
benefits", 
and 
"Veterans 
insurance and indemnities" may be transferred to any other of 
the mentioned appropriations. 
SEC. 102. Appropriations available to the Department of Veter-
ans Affairs for fiscal year 1998 for salaries and expenses shall 
be available for services authorized by 5 U.S.C. 3109. 
I l l STAT. 1350 
PUBLIC LAW 105-65—OCT. 27, 1997 
SEC. 103. No appropriations in this Act for the Department 
of Veterans Affairs (except the appropriations for "Construction, 
major projects", "Construction, minor projects", and the "Parking 
revolving fund") shall be available for the purchase of any site 
for or toward the construction of any new hospital or home. 
SEC. 104. No appropriations in this Act for the Department 
of Vetersms Affairs shall be available for hospitalization or examina-
tion of any persons (except beneficiaries entitled under the laws 
bestowing such benefits to veterans, and persons receiving such 
treatment under 5 U.S.C. 7901-7904 or 42 U.S.C, 5141-5204), 
unless reimbursement of cost is made to the "Medical care" account 
at such rates as may be fixed by the Secretary of Veterans Affairs. 
SEC. 105. Appropriations available to the Department of Veter-
ans Affairs for fiscal year 1998 for "Compensation and pensions", 
"Readjustment benefits", and "Veterans insurance and indemnities" 
shall be available for payment of prior year accrued obligations 
required to be recorded by law against the corresponding prior 
year accounts within the last quarter of fiscal year 1997. 
SEC. 106. Appropriations accounts available to the Department 
of Veterans Affairs for fiscal year 1998 shall be available to pay 
prior year obligations of corresponding prior year appropriations 
accounts resulting from title X of the Competitive Equality Banking 
Act, Public Law 100-86, except that if such obligations are from 
trust fund accoimts they shall be payable from "Compensation 
and pensions". 
SEC. 107. Notwithstanding any other provision of law, during 
fiscal year 1998, the Secretary of Veterans Affairs shall, from the 
National Service Life Insurance Fimd (38 U.S.C. 1920), the Veter-
ans' Special Life Insurance Fund (38 U.S.C. 1923), and the United 
States Government Life Insurance Fimd (38 U.S.C. 1955), reimburse 
the "General operating expenses" account for the cost of administra-
tion of the insurance programs financed through those accounts: 
Provided, That reimbursement shall be made only from the surplus 
earnings accumulated in an insurance program in fiscal year 1998, 
that are available for dividends in that program after claims have 
been paid and actuarially determined reserves have been set aside: 
Provided further, That if the cost of administration of an insurance 
program exceeds the amount of surplus earnings accumulated in 
that program, reimbursement shall be made only to the extent 
of such surplus earnings: Provided further. That the Secretary 
shall determine the cost of administration for fiscal year 1998, 
which is properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income insurance 
included in such insurance program. 
SEC. 108. Section 214(1)(1)(D) of the Immigration and National-
ity Act (8 U.S.C. 1184(1)(1)(D)) (as added by section 220 of the 
Immigration and Nationality Technical Corrections Act of 1994 
and redesignated as subsection (1) by section 671(a)(3)(A) of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 
1996) is amended by inserting before the period at the end the 
following: ", except that, in the case of a request by the Department 
of Veterems Affairs, the alien shall not be required to practice 
medicine in a geographic area designated by the Secretary^'. 
SEC. 109. In accordance with section 1557 of title 31, United 
States Code, the following obligated balance shall be exempt from 
subchapter IV of chapter 15 of such title £ind shgill remain available 
for expenditure without fiscal year limitation: Funds obligated by 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1351 
the Department of Veterans Affairs for lease number 757-084B-
001-91 from funds made available in the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1993 (Public Law 102-389) under 
the heading "Medical care". 
TITLE II 
DEPARTMENT 
OF 
HOUSING 
AND 
URBAN 
DEVELOPMENT 
PUBLIC AND INDIAN HOUSING 
HOUSING CERTIFICATE FUND 
(INCLUDING TRANSFERS OF FUNDS) 
For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the disabled 
because of the loss of affordable housing stock, expiration of subsidy 
contracts (other than contracts for which amounts are provided 
under another heading in this Act) or expiration of use restrictions, 
or other changes in housing assistance arrangements, and for other 
purposes, $9,373,000,000, to remain available until expended: Pro-
vided, That of the total amount provided under this heading, 
$8,180,000,000 shall be for assistance under the United States 
Housing Act of 1937 (42 U.S.C. 1437) for use in connection with 
expiring or terminating section 8 subsidy contracts, for enhanced 
vouchers as provided under the "Preserving Existing Housing 
Investment" account in the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appro-
priations Act, 1997 (Public Law 104-204), and contracts entered 
into pursuant to section 441 of the Stewart B. McKinney Homeless 
Assistance Act: Provided further, That the Secretary may determine 
not to apply section 8(o)(6)(B) of the Act to housing vouchers during 
fiscal year 1998: Provided further, That of the total amount provided 
under this heading, $850,000,000 shall be for amendments to section 
8 contracts other than contracts for projects developed under section 
202 of the Housing Act of 1959, as amended: Provided 
further. 
That of the total amount provided under this heading, $343,000,000 
shall be for section 8 rental assistance under the United States 
Housing Act of 1937 including assistance to relocate residents of 
properties: (1) that are owned by the Secretary and being disposed 
of; or (2) that are discontinuing section 8 project-based assistance; 
for the conversion of section 23 projects to assistance under section 
8; for funds to carry out the family unification program; and for 
the relocation of witnesses in connection with efforts to combat 
crime in public and assisted housing pursuant to a request from 
a law enforcement or prosecution agency: Provided further. That 
of the total amount made available in the preceding proviso, 
$40,000,000 shall be made available to nonelderly disabled families 
affected by the designation of a public housing development under 
section 7 of such Act, the establishment of preferences in accordance 
with section 651 of the Housing and Community Development Act 
of 1992 (42 U.S.C. 13611), or the restriction of occupancy to elderly 
families in accordance with section 658 of such Act, and to the 
extent the Secretary determines that such amount is not needed 
to fund applications for such affected families, to other nonelderly 
disabled families: Provided further, That the amount made available 
I l l STAT. 1352 
PUBLIC LAW 105-65—OCT. 27, 1997 
under the fifth proviso under the heading "Prevention of Resident 
Displacement" in title II of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997, Public Law 104-204, shall also be made 
available to nonelderly disabled families affected by the restriction 
of occupancy to elderly families in accordance with section 658 
of the Housing and Community Development Act of 1992: Provided 
further, That to the extent the Secretary determines that the 
amount made available under the fifth proviso under the heading 
"Prevention of Resident Displacement" in title II of the Departments 
of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997, Public Law 104-
204, is not needed to fund applications for affected 
families 
described in the fifth proviso, or in the preceding proviso under 
this heading in this Act, the amount not needed shall be made 
available to other nonelderly disabled families: Provided 
further. 
That all balances, as of September 30, 1997, remaining in the 
"Annual Contributions for Assisted Housing" account and the 
"Prevention of Resident Displacement" account for use in connection 
with expiring or terminating section 8 subsidy contracts and for 
amendments to section 8 contracts other than contracts for projects 
developed under section 202 of the Housing Act of 1959, as amend-
ed, shall be transferred to and merged with the amounts provided 
for those purposes under this heading. 
SECTION 8 RESERVE PRESERVATION ACCOUNT 
The amounts recaptured during fiscal year 1998 that were 
heretofore made available to public housing agencies for tenant-
based assistance under the section 8 existing housing certificate 
and housing voucher programs from the Annual Contributions for 
Assisted Housing account shall be collected in the account under 
this heading, for use as provided for under this heading, as set 
forth under the Annual Contributions for Assisted Housing heading 
in chapter 11 of Public Law 105-18, approved June 12, 1997. 
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING 
(INCLUDING RESCISSION AND TRANSFER OF FUNDS) 
Notwithstanding any other provision of law, of the amounts 
recaptured under this heading during fiscal year 1998 and prior 
years, $550,000,000, heretofore maintained as section 8 reserves 
made available to housing agencies for tenant-based assistance 
under the section 8 existing housing certificate and housing voucher 
programs, are rescinded. 
Ail balances outstanding as of September 30, 1997, in the 
Preserving Existing Housing Investment Account for the Preserva-
tion program shall be transferred to and merged with the amounts 
previously provided for those purposes under this heading. 
PUBLIC HOUSING CAPITAL FUND 
(INCLUDING TRANSFERS OF FUNDS) 
For the Public Housing Capital Fund Program for moderniza-
tion of existing public housing projects as authorized under section 
14 of the United States Housing Act of 1937, as amended (42 
U.S.C. 1437), $2,500,000,000, to remain available until expended: 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1353 
Provided, That of the total amount, $30,000,000 shall be for carrying 
out activities under section 6(j) of such Act and technical assistance 
for the inspection of public housing units, contract expertise, and 
training and technical assistance directly or indirectly, under 
grants, contracts, or cooperative agreements, to assist in the 
oversight and management of public housing (whether or not the 
housing is being modernized with assistance under this proviso) 
or tenant-based assistance, including, but not limited to, an annual 
resident survey, data collection and analysis, training and technical 
assistance by or to officials and employees of the Department and 
of public housing agencies and to residents in connection with 
the public housing program and for lease adjustments to section 
23 projects: Provided further, That of the amount available under 
this heading, up to $5,000,000 shall be for the Tenant Opportunity 
Program: Provided further. That all balances, as of September 30, 
1997, of funds heretofore provided (other than for Indian families) 
for the development or acquisition costs of public housing, for mod-
ernization of existing public housing projects, for public housing 
amendments, for public housing modernization and development 
technical assistance, for lease adjustments under the section 23 
E
rogram, and for the Family Investment Centers program, shall 
e transferred to and merged with amounts made available under 
this heading. 
PUBLIC HOUSING OPERATING FUND 
(INCLUDING TRANSFER OF FUNDS) 
For payments to public housing agencies for operating subsidies 
for low-income housing projects as authorized by section 9 of the 
United States Housing Act of 1937, as amended (42 U.S.C. 1437g), 
$2,900,000,000, to remain available until expended: Provided, That 
all balances outstanding, as of September 30, 1997, of funds here-
tofore provided (other than for Indian families) for payments to 
public housing agencies for operating subsidies for low-income hous-
ing projects, shall be transferred to and merged with amounts 
made available under this heading. 
DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING 
(INCLUDING TRANSFER OF FUNDS) 
For grants to public housing agencies and tribally designated 
housing entities for use in eliminating crime in public housing 
projects authorized by 42 U.S.C. 11901-11908, for grants for 
federally assisted low-income housing authorized by 42 U.S.C. 
11909, and for drug information clearinghouse services authorized 
by 42 U.S.C. 11921-11925, $310,000,000, to remain available until 
expended, of which $10,000,000 shall be for grants, technical assist-
ance, contracts and other assistance, training, and program assess-
ment and execution for or on behalf of public housing agencies, 
resident organizations, and Indian tribes and their tribally des-
ignated housing entities (including the cost of necessary travel 
for participants in such training); $10,000,000 shall be used in 
connection with efforts to combat violent crime in public and 
assisted housing under the Operation Safe Home program adminis-
tered by the Inspector General of the Department of Housing and 
Urban Development; $10,000,000 shall be provided to the Office 
of Inspector General for Operation Safe Home; and $20,000,000 
I l l STAT. 1354 
PUBLIC LAW 105-65—OCT. 27, 1997 
shall be available for a program named the New Approach Anti-
Drug program which will provide competitive grants to entities 
managing or operating public housing developments, federally 
assisted multifamily housing developments, or other multifamily 
housing developments for low-income families 
supported 
by 
non-Federal governmental entities or similar housing developments 
supported by nonprofit private sources in order to provide or aug-
ment security (including personnel costs), to assist in the investiga-
tion and/or prosecution of drug-related criminal activity in and 
around such developments, and to provide assistance for the devel-
opment of capital improvements at such developments directly relat-
Grants. 
ing to the security of such developments: Provided, That grants 
for the New Approach Anti-Drug program shall be made on a 
competitive basis as specified in section 102 of the Department 
of Housing and Urban Development Reform Act of 1989: Provided 
further, That the term "drug-related crime", as defined in 42 U.S.C. 
11905(2), shall also include other t3^es of crime as determined 
by the Secretary: Provided further, That, notwithstanding section 
5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), 
the Secretary may determine not to use any such funds to provide 
public housing youth sports grants. 
REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING (HOPE VI) 
For grants to public housing agencies for assisting in the demo-
lition of obsolete public housing projects or portions thereof, the 
revitalization (where appropriate) of sites (including remaining pub-
lic housing units) on which such projects are located, replacement 
housing which will avoid or lessen concentrations of very low-
income families, and tenant-based assistance in accordance with 
section 8 of the United States Housing Act of 1937; and for providing 
replacement housing and assisting tenants displaced by the demoli-
tion, $550,000,000, to remain available until expended, of which 
the Secretary may use up to $10,000,000 for technical assistance 
and contract expertise, to be provided directly or indirectly by 
grants, contracts or cooperative agreements, including training and 
cost of necessary travel for participants in such training, by or 
to officials and employees of the Department and of public housing 
agencies and to residents: Provided, That of the amount made 
available under this heading, $26,000,000 shall be made available, 
including up to $10,000,000 for Heritage House in Kansas City, 
Missouri, for the demolition of obsolete elderly public housing 
projects and the replacement, where appropriate, and revitalization 
of the elderly public housing as new communities for the elderly 
designed to meet the special needs and physical requirements of 
the elderly: Provided further. That no funds appropriated under 
this heading shall be used for any purpose that is not provided 
for herein, in the United States Housing Act of 1937, in the Appro-
priations Acts for the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies, for the fiscal 
years 1993, 1994, 1995, and 1997, and the Omnibus Consohdated 
Rescissions and Appropriations Act of 1996: Provided further. That 
none of such funds shall be used directly or indirectly by granting 
competitive advantage in awards to settle litigation or pay judg-
ments, unless expressly permitted herein. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1355 
NATIVE AMERICAN HOUSING BLOCK GRANTS 
(INCLUDING TRANSFERS OF FUNDS) 
For the Native American Housing Block Grants program, as 
authorized under title I of the Native American Housing Assistemce 
and Self-Determination Act of 1996 (Public Law 
104-330), 
$600,000,000, to remain available until expended, of which 
$5,000,000 shall be used to support the inspection of Indian housing 
units, contract expertise, training, and technical assistance in the 
oversight and management of Indian housing and tenant-based 
assistance, including up to $200,000 for related travel: Provided, 
That of the amount provided under this heading, $5,000,000 shall 
be made available for the cost of guaranteed notes and other obliga-
tions, as authorized by title VI of the Native American Housing 
Assistance and Self-Determination Act of 1996: Provided 
further, 
That such costs, including the costs of modifying such notes and 
other obligations, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974, as amended: Provided further. That 
these funds are available to subsidize the total principal amount 
of any notes and other obligations, any part of which is to be 
guar£inteed, not to exceed $217,000,000: Provided further. 
That 
the funds made available in the first proviso are for a demonstration 
on ways to enhance economic growth, to increase access to private 
capital, and to encourage the investment and participation of tradi-
tional financial institutions in tribal and other Native American 
areas: Provided further. That all balances outstanding as of Septem-
ber 30, 1997, previously appropriated under the headings "Annual 
Contributions for Assisted Housing", "Development of Additional 
New Subsidized Housing", "Preserving Existing Housing Invest-
ment", "HOME Investment PartnersMps Program", "Emergency 
Shelter Grants Program", and "Homeless Assistsince Funds", identi-
fied for Indian Housing Authorities and other agencies primarily 
serving Indians or Indian areas, shall be transferred to and merged 
with amounts made available under this heading. 
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT 
For the cost of guarsmteed loans, as authorized by section 
184 of the Housing and Community Development Act of 1992 (106 
Stat. 3739), $5,000,000, to remain available imtil expended: Pro-
vided, That such costs, including the costs of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended; Provided further. That these funds are 
available to subsidize total loan principal, any part of which is 
to be guaranteed, not to exceed $73,800,000. 
CAPITAL GRANTS/CAPITAL LOANS PRESERVATION ACCOUNT 
At the discretion of the Secretary, to reimburse owners, non-
profits, and tenant groups for which plans of action were submitted 
with reg£ird to eligible properties imder the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (LIHPRHA) 
or the Emergency Low Income Housing Preservation Act of 1987 
(ELIHPA) prior to the effective date of this Act, but were not 
executed for lack of available funds, with such reimbursement avail-
able only for documented costs directly applicable to the preparation 
of the plan of action or any purchase agreement as determined 
I l l STAT. 1356 
PUBLIC LAW 105-65—OCT. 27, 1997 
by the Secretary, on terms and conditions to be established by 
the Secretary, $10,000,000 shall be made available. 
COMMUNITY PLANNING AND DEVELOPMENT 
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 
For carrying out the Housing Opportunities for Persons with 
AIDS program, as authorized by the AIDS Housing Opportunity 
Act (42 U.S.C. 12901), $204,000,000, to remain available until 
expended: Provided, That of the amount made available under 
this heading for non-formula allocation, the Secretary may des-
ignate, on a noncompetitive basis, one or more nonprofit organiza-
tions that provide meals delivered to homebound persons with 
acquired immunodeficiency syndrome or a related disease to receive 
grants, not exceeding $250,000 for any grant, and the Secretary 
shall assess the efficacy of providing such assistance to such per-
sons. 
COMMUNITY DEVELOPMENT BLOCK GRANTS 
(INCLUDING TRANSFERS OF FUNDS) 
For grants to States and units of general local government 
and for related expenses, not otherwise provided for, to carry out 
a community development grants program as authorized by title 
I of the Housing and Community Development Act of 1974, as 
amended (the "Act" herein) (42 U.S.C. 5301), $4,675,000,000, to 
remain available until September 30, 2000: Provided, 
That 
$67,000,000 shall be for grants to Indian tribes notwithstanding 
section 106(a)(1) of such Act; $2,100,000 shall be available as a 
grant to the Housing Assistance Council; $1,500,000 shall be avail-
able as a grant to the National American Indian Housing Council; 
$32,000,000 shall be for grants pursuant to section 107 of such 
Act; $7,500,000 shall be for the Community Outreach Partnership 
program; $16,700,000 shall be for grants pursuant to section 11 
of the Housing Opportunity Program Extension Act of 1996 (Public 
Law 104-120): Provided further. That not to exceed 20 percent 
of any grant made with funds appropriated herein (other than 
a grant made available under the preceding proviso to the Housing 
Assistance Coimcil or the National American Indian Housing Coim-
cil, or a grant using funds under section 107(b)(3) of the Housing 
and Community Development Act of 1974, as amended) shall be 
expended for "Planning and Management Development" and 
"Administration" as defined in regulations promulgated by the 
Department. 
Of the amount made available under this heading, $15,000,000 
shall be made available for "Capacity Building for Community 
Development and Affordable Housing", as authorized by section 
4 of the HUD Demonstration Act of 1993 (Public Law 103-120), 
as in effect immediately before June 12, 1997, with not less than 
$5,000,000 of the funding to be used in rural areas, including 
tribal areas. 
Of the amount provided under this heading, the Secretary 
of Housing and Urban Development may use up to $55,000,000 
for a public and assisted housing self-sufficiency program, of which 
up to $5,000,000 may be used for the Moving to Work Demonstra-
tion, and at least $7,000,000 shall be used for grants for service 
• ••#>53»''"-'' 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1357 
coordinators and congregate services for the elderly and disabled: 
Provided, That for self-sufficiency activities, the Secretary may 
make grants to public housing agencies (including Indian tribes 
and their tribally designated housing entities), nonprofit corpora-
tions, and other appropriate entities for a supportive services 
program to assist residents of public and assisted housing, former 
residents of such housing receiving tenant-based assistance under 
section 8 of such Act (42 U.S.C. 1437f), and other low-income 
families and individuals: Provided further, That the program shall 
provide supportive services, principally for the benefit of public 
housing residents, to the elderly and the disabled, and to families 
with children where the head of household would benefit from 
the receipt of supportive services and is working, seeking work, 
or is preparing for work by participating in job training or edu-
cational programs: Provided further. That the supportive services 
may include congregate services for the elderly and disabled, service 
coordinators, and coordinated education, training, and 
other 
supportive services, including academic skills training, job search 
assistance, assistance related to retaining employment, vocational 
£ind entrepreneurship development and support programs, transpor-
tation, and child care: Provided further, That the Secretary shall 
require applications to demonstrate firm commitments of fiinding 
or services fi'om other sources: Provided further, That the Secretary 
shall select public and Indian housing agencies to receive assistance 
under this heading on a competitive basis, taking into account 
the quality of the proposed program, including any innovative 
approaches, the extent of the proposed coordination of supportive 
services, the extent of commitments of funding or services from 
other sources, the extent to which the proposed program includes 
reasonably achievable, quantifiable goals for measuring perform-
ance under the program over a three-year period, the extent of 
success £in agency has had in canying out other comparable initia-
tives, and other appropriate criteria established by the Secretary 
(except that this proviso shall not apply to renewal of grants for 
service coordinators and congregate services for the elderly and 
disabled). 
Of the amount made available under this heading, notwith-
standing any other provision of law, $35,000,000 shall be available 
for YouthBuild program activities authorized by subtitle D of title 
IV of the Cranston-Gonzalez National Affordable Housing Act, as 
amended, and such activities shall be an eligible activity with 
respect to any funds made available under this heading. Local 
YouthBuild programs that demonstrate £in ability to leverage pri-
vate £ind nonprofit funding shall be given a priority for YouthBuild 
funding. 
Of the amount made available under this heading, $25,000,000 
shall be available for the Secretary, in consultation with the Sec-
retary of Agriculture, to make grants, not to exceed $4,000,000 
each, for rural and tribal areas, including at least one Native 
American area in Alaska and one rural area in each of the States 
of Iowa and Missouri, to test comprehensive approaches to develop-
ing a job base through economic development, developing affordable 
low- and moderate-income rental and homeownership housing, and 
increasing the investment of both private and nonprofit capital. 
Of the amount made available under this heading, $138,000,000 
shall be available for the Economic Development Initiative (EDI) 
to finance a variety of efforts, including $100,000,000 for making 
I l l STAT. 1358 
PUBLIC LAW 105-65—OCT. 27, 1997 
grants for targeted economic investments in accordance with the 
terms and conditions specified for such grants in the conference 
report and the joint explanatory statement of the committee of 
conference accompanying this Act. 
Of the amount made available under this heading, notwith-
standing any other provision of law, $60,000,000 shall be available 
for the lead-based paint hazard reduction program as authorized 
under sections 1011 and 1053 of the Residential Lead-Based Hazard 
Reduction Act of 1992. 
Of the amount made available under this heading, $25,000,000, 
including $15,000,000 for the County of San Bernardino, California, 
shall be used for neighborhood initiatives that are utilized to 
improve the conditions of distressed and blighted areas and 
neighborhoods, and to determine whether housing benefits can be 
integrated more effectively with welfare reform initiatives. 
For the cost of guaranteed loans, $29,000,000, as authorized 
by section 108 of the Housing and Community Development Act 
of 1974: Provided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Congressional 
Budget Act of 1974, as amended: Provided further, That these 
funds are available to subsidize total loan principal, any part of 
which is to be guaranteed, not to exceed $1,261,000,000, notwith-
standing any aggregate limitation on outstanding obligations 
guaranteed in section 108(k) of the Housing and Community Devel-
opment Act of 1974. In addition, for administrative expenses to 
carry out the guaranteed loan program, $1,000,000, which shall 
be transferred to and merged with the appropriation for depart-
mental salaries and expenses. 
Of the $500,000,000 made available under the 
heading 
"Community Development Block Grgints Fund" in the 1997 Emer-
gency Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including Those 
in Bosnia (Public Law 105-18), not more than $3,500,000 shall 
be made available for the non-Federal cost-share for a levee project 
at Devils Lake, North Dakota: Provided, That the Secretary of 
Housing and Urban Development shall provide the State of North 
Dakota with a waiver to allow the use of its annual Community 
Development Block Grant sillocation for use in funding the non-
Federal cost-share for a levee project at Devils Lake, North Dakota: 
Provided further. That notwithstanding any other provision of law, 
the Secretary is prohibited fi*om providing waivers, other than 
those provided herein, for funds in excess of $100,000 in emergency 
Community Development Block Grants funds for the non-Federal 
cost-share of projects funded by the Secretary of the Army through 
the Corps of Engineers. 
BROWNFIELDS REDEVELOPMENT 
For Economic Development Grants, as authorized by section 
108(q) of the Housing and Community Development Act of 1974, 
as amended, for Brownfields redevelopment projects, $25,000,000, 
to remain available until expended: Provided, That the Secretary 
of Housing and Urban Development shall make these grants 
available on a competitive basis as specified in section 102 of 
the Department of Housing and Urban Development Reform Act 
of 1989. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1359 
EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES 
For planning grants, technical assistance, contracts and other 
assistance, and training in connection with Empowerment Zones 
and Enterprise Communities, designated by the Secretary of 
Housing and Urban Development, to continue efforts to stimulate 
economic 
opportunity 
in 
America's 
distressed 
communities, 
$5,000,000, to remain available until expended. 
HOME INVESTMENT PARTNERSHIPS PROGRAM 
For the HOME investment partnerships program, as authorized 
under title II of the Cranston-Gonzalez National Affordable Housing 
Act (Public Law 101-625), as amended, $1,500,000,000, to remain 
available until expended: Provided, That up to $7,000,000 shall 
be available for the development and operation of integrated 
community 
development 
management 
information 
systems: 
Provided further, That $20,000,000 shall be available for Housing 
Counseling under section 106 of the Housing and Urban Develop-
ment Act of 1968: Provided further. That up to $10,000,000 shall 
be available to carry out a demonstration program in which the 
Secretary makes grants to up to three organizations exempt from 
Federal taxation under section 501(c)(3) of the Internal Revenue 
Code, selected on a competitive basis, to demonstrate methods 
of expanding homeownership opportunities for low-income borrow-
ers through expanding the secondary market for non-conforming 
home mortgage loans to low-wealth borrowers: Provided 
further. 
That grantees for such demonstration program shall have experi-
ence in working with lenders who make non-conforming loans to 
low-income borrowers, have experience in expanding the secondary 
market for such loans, have demonstrated success in carrying out 
such activities including raising non-Federal grants and capital 
on concessionary terms for the purpose of expanding the secondary 
market for loans in the previous two years in amounts equal to 
or exceeding the amount awarded to such organization under this 
paragraph, and have demonstrated the ability to provide data on 
the performance of such loans sufficient to allow for future analysis 
of the investment risk of such loans. 
SUPPORTIVE HOUSING PROGRAM 
(RESCISSION) 
Of the funds made available under this heading in Public 
Law 102-389 and prior laws for the Supportive Housing Demonstra-
tion Program, as authorized by the Stewart B. McKinney Homeless 
Assistance Act, $6,000,000 of funds recaptured during fiscal year 
1998 shall be rescinded. 
SHELTER PLUS CARE 
(RESCISSION) 
Of the funds made available under this heading in Public 
Law 102-389 and prior laws for the Shelter Plus Care program, 
as authorized by the Stewart B. McKinney Homeless Assistance 
Act, $4,000,000 of funds recaptured during fiscal year 1998 shall 
be rescinded. 
I l l STAT. 1360 
PUBLIC LAW 105-65—OCT. 27, 1997 
HOMELESS ASSISTANCE GRANTS 
For the emergency shelter grants program (as authorized under 
subtitle B of title IV of the Stewart B. McKinney Homeless 
Assistance Act, as amended); the supportive housing program (as 
authorized under subtitle C of title IV of such Act); the section 
8 moderate rehabilitation single room occupancy program (as 
authorized under the United States Housing Act of 1937, as amend-
ed) to assist homeless individuals pursuant to section 441 of the 
Stewart B. McKinney Homeless Assistance Act; and the shelter 
plus care program (as authorized under subtitle F of title IV of 
such Act), $823,000,000, to remain available until expended. 
HOUSING PROGRAMS 
HOUSING FOR SPECIAL POPULATIONS 
(INCLUDING TRANSFERS OF FUNDS) 
For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for 
low-income families under the United States Housing Act of 1937, 
as amended (42 U.S.C. 1437), not otherwise provided 
for, 
$839,000,000, to remain available until expended: Provided, That 
of the total amount provided under this heading, $645,000,000 
shall be for capital advances, including amendments to capital 
advance contracts, for housing for the elderly, as authorized by 
section 202 of the Housing Act of 1959, as amended, and for project 
rental assistance, and amendments to contracts for project rental 
assistance, for the elderly under section 202(c)(2) of the Housing 
Act of 1959, and for supportive services associated with the housing; 
and 
$194,000,000 
shall be for 
capital 
advances, 
including 
amendments to capital advance contracts, for supportive housing 
for persons with disabilities, as authorized by section 811 of the 
Cranston-Gonzalez National Affordable Housing Act, for project 
rental assistance, for amendments to contracts for project rental 
assistance, and supportive services associated with the housing 
for persons with disabilities as authorized by section 811 of such 
Act: Provided further, That the Secretary may designate up to 
25 percent of the amounts earmarked under this paragraph for 
section 811 of such Act for tenant-based assistance, as authorized 
under that section, including such authority as may be waived 
under the next proviso, which assistance is five years in duration: 
Provided further. That the Secretary may waive any provision of 
section 202 of the Housing Act of 1959 and section 811 of the 
Cranston-Gonzalez National Affordable Housing Act (including the 
provisions governing the terms and conditions of project rental 
assistance and tenant-based assistance) that the Secretary deter-
mines is not necessary to achieve the objectives of these programs, 
or that otherwise impedes the ability to develop, operate or admin-
ister projects assisted under these programs, and may make provi-
sion for alternative conditions or terms where appropriate: Provided 
further, That all balances, as of September 30, 1997, remaining 
in either the "Annual Contributions for Assisted Housing" account 
or the "Development of Additional New Subsidized Housing" account 
for capital advances, including amendments to capital advances, 
for housing for the elderly, as authorized by section 202 of the 
Housing Act of 1959, as amended, and for project rental assistance. 
•:'«##i*l>' 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1361 
and amendments to contracts for project rental assistance, for 
supportive housing for the elderly, under section 202(c)(2) of such 
Act, shall be transferred to and merged with the amounts for 
those purposes under this heading; and, all balances, as of Septem-
ber 30, 1997, remaining in either the "Annual Contributions for 
Assisted Housing" account or the "Development of Additional New 
Subsidized Housing" account for capital advances, including amend-
ments to capital advances, for supportive housing for persons with 
disabilities, as authorized by section 811 of the Cranston-Gonzalez 
National Affordable Housing Act, and for project rental assistance, 
and amendments to contracts for project rental assistance, for 
supportive housing for persons with disabilities, as authorized under 
section 811 of such Act, shall be transferred to and merged with 
the amounts for those purposes under this heading. 
OTHER ASSISTED HOUSING PROGRAMS 
RENTAL. HOUSING ASSISTANCE 
(RESCISSION) 
The limitation otherwise applicable to the maximum pajonents 
that may be required in any fiscal year by all contracts entered 
into under section 236 of the National Housing Act (12 U.S.C. 
1715Z-1) is reduced in fiscal year 1998 by not more than $7,350,000 
in uncommitted balances of authorizations provided for this purpose 
in appropriation Acts: Provided, That up to $125,000,000 of recap-
tured budget authority shall be canceled. 
FLEXIBLE 
SUBSIDY 
FUND 
(TRANSFER 
OF 
FUNDS) 
From the Rental Housing Assistance Fund, all uncommitted 
balances of excess rental charges as of September 30, 1997, and 
any collections made during fiscal year 1998, shall be transferred 
to the Flexible Subsidy Fund, as authorized by section 236(g) of 
the National Housing Act, as amended. 
FEDERAL HOUSING ADMINISTRATION 
FHA-MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT 
(INCLUDING TRANSFERS OF FUNDS) 
During fiscal year 1998, commitments to guarantee loans to 
carry out the purposes of section 203(b) of the National Housing 
Act, 
as 
amended, 
shall 
not 
exceed 
a 
loan 
principal 
of 
$110,000,000,000. 
During fiscal year 1998, obligations to make direct loans to 
carry out the purposes of section 204(g) of the National Housing 
Act, as amended, shall not exceed $200,000,000: Provided, That 
the foregoing amount shall be for loans to nonprofit and govern-
mental entities in connection with sales of single family real 
properties owned by the Secretary and formerly insured under 
the Mutual Mortgage Insurance Fund. 
For administrative expenses necessary to carry out the guaran-
teed and direct loan program, $338,421,000, to be derived from 
the FHA-mutual mortgage insurance guaranteed loans receipt 
I l l STAT. 1362 
PUBLIC LAW 105-65—OCT. 27, 1997 
account, of which not to exceed $326,309,000 shall be transferred 
to the appropriation for departmental salaries and expenses; and 
of which not to exceed $12,112,000 shall be transferred to the 
appropriation for the Office of Inspector General. 
FHA-GENERAL AND SPECIAL RISK PROGRAM ACCOUNT 
(INCLUDING TRANSFERS OF FUNDS) 
For the cost of guaranteed loans, as authorized by sections 
238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 and 
1735c), including the cost of loan guarantee modifications (as that 
term is defined in section 502 of the Congressional Budget Act 
of 1974, as amended), $81,000,000, to remain available until 
expended: Provided, That these funds are available to subsidize 
total loan principal, any part of which is to be guaranteed, of 
up to $17,400,000,000: Provided further, That any amounts made 
available in any prior appropriations Act for the cost (as such 
term is defined in section 502 of the Congressional Budget Act 
of 1974) of guaranteed loans that are obligations of the funds 
established under section 238 or 519 of the National Housing Act 
that have not been obligated or that are deobligated shall be 
available to the Secretary of Housing and Urban Development 
in connection with the making of such guarantees and shall remain 
available until expended, notwithstanding the expiration of any 
period of availability otherwise applicable to such amounts. 
Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(1), 238(a), and 519(a) of the 
National Housing Act, shall not exceed $120,000,000; of which 
not to exceed $100,000,000 shall be for bridge financing in connec-
tion with the sale of multifamily real properties owned by the 
Secretary and formerly insured under such Act; and of which not 
to exceed $20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family real 
properties owned by the Secretary and formerly insured under 
such Act. 
In addition, for administrative expenses necessary to carry 
out the guaranteed and direct loan programs, $222,305,000, of 
which $218,134,000, including $25,000,000 for the enforcement of 
housing standards on FHA-insured multifamily projects, shall be 
transferred to the appropriation for departmental salaries and 
expenses; and of which $4,171,000 shall be transferred to the appro-
priation for the Office of Inspector General. 
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE 
- 
PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
During fiscal year 1998, new commitments to issue guarantees 
to carry out the purposes of section 306 of the National Housing 
Act, 
as 
amended 
(12 
U.S.C. 
1721(g)), 
shall 
not 
exceed 
$130,000,000,000. 
For administrative expenses necessary to carry out the guaran-
teed mortgage-backed securities program, $9,383,000, to be derived 
from the GNMA-guarantees of mortgage-backed securities guargm-
teed loan receipt account, of which not to exceed $9,383,000 shall 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1363 
be transferred to the appropriation for departmental salaries and 
expenses. 
POLICY DEVELOPMENT AND RESEARCH 
RESEARCH AND TECHNOLOGY 
For contracts, grants, £ind necessary expenses of programs of 
research and studies relating to housing and urban problems, not 
otherwise provided for, as authorized by title V of the Housing 
and Urban Development Act of 1970, as amended (12 U.S.C. 1701z-
1 et seq.), including carrying out the functions of the Secretary 
under section l(a)(l)(i) of Reorganization Plan No. 2 of 1968, 
$36,500,000, to remain available until September 30, 1999. 
Of the amount made available under this heading, $500,000 
shall be made available for a contract with the National Academy 
of Public Administration to evaluate the Secretary's efforts to imple-
ment needed management systems and processes. 
FAIR HOUSING AND EQUAL OPPORTUNITY 
FAIR HOUSING ACTIVITIES 
For contracts, grants, Eind other assistance, not otherwise pro-
vided for, as authorized by title VIII of the Civil Rights Act of 
1968, as amended by the Fair Housing Amendments Act of 1988, 
and section 561 of the Housing and Community Development Act 
of 1987, as amended, $30,000,000, to remain available until Septem-
ber 30, 1999, of which $15,000,000 shall be to carry out activities 
pursuant to such section 561. No funds made available under this 
heading shall be used to lobby the executive or legislative branches 
of the Federal Government in connection with a specific contract, 
grant or loan. 
MANAGEMENT AND ADMINISTRATION 
SALARIES AND EXPENSES 
(INCLUDING TRANSFERS OF FUNDS) 
For necessary administrative and nonadministrative expenses 
of the Department of Housing and Urban Development not other-
wise provided for, including not to exceed $7,000 for official recep-
tion 
and 
representation 
expenses, 
$1,000,826,000, 
of which 
$544,443,000 shall be provided from the various funds of the Federal 
Housing Administration, $9,383,000 shall be provided from funds 
of the Government National Mortgage Association, and $1,000,000 
shall be provided from the "Community Development Grants Pro-
gram" account. 
OFFICE OF INSPECTOR GENERAL 
(INCLUDING TRANSFERS OF FUNDS) 
For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$66,850,000, of which $16,283,000 shall be provided from the var-
ious funds of the Federal Housing Administration and $10,000,000 
shall be transferred from the amount earmarked for Operation 
I l l STAT. 1364 
PUBLIC LAW 105-65—OCT. 27, 1997 
42 u s e 1437c 
note. 
42 u s e 1437f 
note. 
42 u s e 1437f. 
110 Stat. 40. 
42 u s e 1437a 
note. 
110 Stat. 44. 
Illinois. 
Safe Home in the "Drug Elimination Grants for Low-Income Hous-
ing" account. 
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For canying out the Federal Housing Enterprise Financial 
Safety and Soundness Act of 1992, $16,000,000, to remain available 
until expended, to be derived from the Federal Housing Enterprise 
Oversight Fund: Provided, That not to exceed such amount shall 
be available from the General Fund of the Treasury to the extent 
necessary to incur obligations and make expenditures pending the 
receipt of collections to the Fund: Provided further, That the General 
Fund amoimt shall be reduced as collections are received during 
the fiscal year so as to result in a final appropriation from the 
General Fund estimated at not more than $0. 
ADMINISTRATIVE PROVISIONS 
SEC. 
201. 
EXTENDERS, (a) 
ONE-FOR-ONE REPLACEMENT OF 
PUBLIC HOUSING.—Section 1002(d) of Pubhc Law 104-19 is amend-
ed by striking "1997" and inserting "1998". 
(b) 
STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.— 
Section 203(d) of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 1996, is amended by striking "fiscal years 1996 and 1997" 
and inserting "fiscal years 1996, 1997, and 1998". 
(c) SECTION 8 RENT ADJUSTMENTS.—Section 8(c)(2)(A) of the 
United States Housing Act of 1937 is amended— 
(1) in the third sentence, by striking "fiscal year 1997" 
and inserting "fiscal years 1997 and 1998"; and 
(2) in the last sentence, by striking "fiscal year 1997" 
and inserting "fiscal years 1997 and 1998". 
(d) PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUST-
MENTS AND PREFERENCES.— 
(1) Section 402(a) of The Balanced Budget Downpayment 
Act, I is amended by striking "fiscal year 1997" and inserting 
"fiscal years 1997 and 1998". 
(2) Section 402(f) of The Balanced Budget Downpayment 
Act, I is amended by striking "fiscal years 1996 and 1997" 
and inserting "fiscal years 1996, 1997, and 1998". 
SEC. 
202. 
DELAY REISSUANCE OF VOUCHERS AND CERTIFI-
CATES.—Section 403(c) of The Balanced Budget Downpayment Act, 
I is amended— 
(1) by striking "fiscal years 1996 and 1997" and inserting 
"fiscal years 1996,1997, and 1998"; 
(2) by striking "1996 and October" and inserting "1996, 
October"; and 
(3) by inserting before the semicolon the following: "and 
October 1, 1998 for assistance made available during fiscal 
year 1998". 
SEC. 203. WAIVER.—The part of the HUD 1996 Community 
Development Block Grant to the State of Illinois which is adminis-
tered by the State of Illinois Department of Commerce and Commu-
nity Affairs (grant number B-96-DC-170001) and which, in turn, 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1365 
was granted by the Illinois Department of Commerce and Commu-
nity Affairs to the city of Oglesby, Illinois, located in LaSalle 
County, Illinois (State of Illinois Department of Commerce and 
Community Affairs grant number 96-24104), for the purpose of 
providing infrastructure for a warehouse in Oglesby, Illinois, is 
exempt from the provisions of section 104(g)(2), (g)(3), and (g)(4) 
of title I of the Housing and Community Development Act of 1974, 
as amended. 
SEC. 204. FINANCING ADJUSTMENT FACTORS.—Fifty percent of 
the amounts of budget authority, or in lieu thereof 50 percent 
of the cash amounts associated with such budget authority, that 
are recaptured from projects described in section 1012(a) of the 
Stewart B. McKinney Homeless Assistance Amendments Act of 
1988 (Public Law 100-628; 102 Stat. 3224, 3268) shall be rescinded, 
or in the case of cash, shall be remitted to the Treasury, and 
such amounts of budget authority or cash recaptured and not 
rescinded or remitted to the Treasury shall be used by State housing 
finance agencies or local governments or local housing agencies 
with projects approved by the Secretary of Housing and Urban 
Development for which settlement occurred after January 1, 1992, 
in accordance with such section. Notwithstanding the previous sen-
tence, the Secretary may award up to 15 percent of the budget 
authority or cash recaptured and not rescinded or remitted to 
the Treasury to provide project owners with incentives to refinance 
their project at a lower interest rate. 
SEC. 205. ANNUAL ADJUSTMENT FACTORS.—Section 8(c)(2)(A) 
of the United States Housing Act of 1937, as amended by section 
201 of this title, is further amended by inserting the following 
new sentences at the end: "In establishing annual adjustment fac-
tors for units in new construction and substantial rehabilitation 
projects, the Secretary shall take into account the fact that debt 
service is a fixed expense. The immediately foregoing sentence 
Effective date. 
shall be effective only during fiscal year 1998.". 
SEC. 206. COMMUNITY DEVELOPMENT BLOCK GRANT.—Notwith-
standing any other provision of law, the $7,100,000 appropriated 
for an industrial park at 18th Street and Indiana Avenue shall 
be made available by the Secretary instead to 18th and Vine for 
rehabilitation and infrastructure development associated with the 
"Negro Leagues Baseball Museum" and the jazz museum. 
SEC. 207. 
FAIR HOUSING AND FREE SPEECH.—None of 
the 
amounts made available under this Act may be used during fiscal 
year 1998 to investigate or prosecute under the Fair Housing Act 
any otherwise lawful activity engaged in by one or mote persons, 
including the filing or maintaining of a nonfrivolous legal action, 
that is engaged in solely for the purpose of achieving or preventing 
action by a government official or entity, or a court of competent 
jurisdiction. 
SEC. 208. REQUIREMENT FOR HUD To MAINTAIN PUBLIC NOTICE 
AND COMMENT RULEMAKING.—Notwithstanding any other provision 
of law, for fiscal year 1998 and for all fiscal years thereafter, 
the Secretary of Housing and Urban Development shall maintain 
all current requirements under part 10 of the Department of Hous-
ing and Urban Development regulations (24 CFR part 10) with 
respect to the Department's policies and procedures for the 
promulgation and issuance of rules, including the use of public 
participation in the rulemeiking process. 
Ill STAT. 1366 
PUBLIC LAW 105-65—OCT. 27, 1997 
SEC. 209. BROWNFIELDS AS ELIGIBLE C D B G ACTIVITY.—During 
fiscal year 1998, States and entitlement communities may use 
funds allocated under the community development block grants 
program under title I of the Housing and Community Development 
Act of 1974 for environmental cleanup and economic development 
activities related to Brownfields projects in conjunction with the 
appropriate environmental regulatory agencies, as if such activities 
were eligible under section 105(a) of such Act. 
SEC. 210. PARTIAL PAYMENT OF CLAIMS ON HEALTH CARE 
12 use 
FACILITIES.—Section 541(a) of the National Housing Act is 
I735f-19. 
amended— 
(1) in the section heading, by adding "AND HEALTH CARE 
FACILITIES" at the end; and 
(2) in subsection (a)— 
(A) by inserting "or a health care facility (including 
a nursing home, intermediate care facility, or board and 
care home (as those terms are defined in section 232 of 
this Act), a hospital (as that term is defined in section 
242 of this Act), or a group practice facility (as that term 
is defined in section 1106 of this Act))" aft;er "1978"; and 
(B) by inserting "or for keeping the health care facility 
operational to serve community needs," after "character 
of the project,". 
SEC. 211. CALCULATION OF DOWNPAYMENT.—Section 203(b) of 
12 use 1709. 
the National Housing Act is amended by striking "fiscal year 1997" 
in paragraph (lOXA) and inserting "fiscal years 1997 and 1998". 
SEC. 212. HOPE VI NOFA—Notwithstanding any other provi-
sion of law, including the July 22, 1996 Notice of Funding Availabil-
ity (61 Fed. Reg. 38024), the demolition of units at developments 
funded under the Notice of Funding Availability shall be at the 
option of the New York City Housing Authority and the assistance 
awarded shall be allocated by the public housing agency among 
other eligible activities under the HOPE VI program and without 
the development costs limitations of the Notice, provided that the 
public housing agency shall not exceed the total cost limitations 
for the public housing agency, as provided by the Department 
of Housing and Urban Development. 
SEC. 213. ENHANCED DISPOSITION AUTHORITY.—Section 204 of 
the Departments of Veterans Affairs and Housing and Urban Devel-
12 use 
opment, and Independent Agencies Appropriations Act, 1997, is 
1715z-lla. 
amended by inserting after "owned by the Secretary" the following: 
", including, for fiscal years 1997 and 1998, the provision of grants 
and loans from the (Jeneral Insurance Fund (12 U.S.C. 1735c) 
for the necessary costs of rehabilitation or demoUtion,". 
SEC. 214. HOME PROGRAM FORMULA.—^The first sentence of 
section 217(bX3) of the Cranston-Gonzalez National Affordable 
42 use 12747. 
Housing Act is amended by striking "only those jurisdictions that 
are allocated an amount of $500,000 or greater shall receive an 
allocation" and inserting the following: "jurisdictions that are allo-
cated an amount of $500,000 or more, and participating jurisdictions 
(other than consortia that fail to renew the membership of all 
of their member jurisdictions) that are allocated an amount less 
than $500,000, shall receive an allocation". 
SEC. 215. HUD RENT REFORM.—Notwithstanding any other 
provision of law, the Secretary of Housing and Urban Development 
may provide tenant-based assistance to eligible tenants of a project 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1367 
insured under either section 221(d)(3) or 236 of the National Hous-
ing Act in the same manner as if the owner had prepaid the 
insured mortgage to the extent necessary to minimize any rent 
increases or to prevent displacement of low-income tenants in 
accordance with a transaction approved by the Secretary provided 
that the rents are no higher than the published section 8 fair 
market rents, as of the date of enactment, during the tenemts' 
occupancy of the property. 
SEC. 216. NURSING HOME LEASE TERMS.—Section 232(b)(4)(B) 
of the National Housing Act is amended by striking "fifty years 
12 USC I7i5w. 
from the date the mortgage was executed" and inserting "ten years 
to run beyond the maturity date of the mortgage". 
SEC. 217. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 
GRANTS, (a) ELIGIBILITY.—Notwithstanding section 854(c)(1)(A) of 
the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from 
any amounts made available under this title for fiscal year 1998 
that are allocated under such section, the Secretary of Housing 
and Urban Development shall allocate and make a grant, in the 
amount determined under subsection (b), for any State that— 
(1) received an allocation for fiscal year 1997 under clause 
(ii) of such section; 
(2) is not otherwise eligible for an allocation for fiscal 
year 1998 under such clause (ii) because the State does not 
have the number of cases of acquired immunodeficiency syn-
drome required under such clause; and 
(3) would meet such requirement if the cases in the metro-
politan statistical area for any city within the State, which 
city was not eligible for an allocation for fiscal year 1997 
under clause (i) of such section but is eligible for an allocation 
for fiscal year 1998 under such clause, were considered to 
be cases outside of metropolitan statistical areas described in 
clause (i) of such section. 
(b) AMOUNT.—The amount of the allocation and grant for any 
State described in subsection (a) shall be the amount that is equal 
to the lesser o
f
— 
(1) the difference between— 
(A) the total amount allocated for such State under 
section 854(c)(l)(A)(ii) of the AIDS Housing Opportunity 
Act for fiscal year 1997; and 
(B) the total amount allocated for the city described 
in 
subsection 
(a)(3) of this 
section 
under 
section 
854(c)(l)(A)(i) of such Act for fiscal year 1998 (from 
amounts made available under this title); and 
(2) $300,000. 
SEC. 218. DEBT FORGIVENESS.—The Secretary of Housing and 
Urban Development shall cancel the indebtedness of the Village 
of Bobbins, Ilhnois, relating to loans under the Reconstruction 
Finance Corporation and refinanced under the Public Facility Loan 
program (loan numbers ILL-ll-RFC-0029 and ILL-11-PFLOlll). 
The Village is hereby relieved of all liability to the Federal Govern-
ment for the outstanding principal balance on such loans, for the 
amount of accrued interest on such loans, and for any fees and 
charges payable in connection with such loans. 
I l l STAT. 1368 
PUBLIC LAW 105-65—OCT. 27, 1997 
TITLE III—INDEPENDENT AGENCIES 
AMERICAN BATTLE MONUMENTS COMMISSION 
SALARIES AND EXPENSES 
For necessary expenses, not otherwise provided for, of the 
American Battle Monuments Commission, including the acquisition 
of land or interest in land in foreign countries; purchases and 
repair of uniforms for caretakers of national cemeteries and 
monuments outside of the United States and its territories and 
possessions; rent of office and garage space in foreign countries; 
purchase (one for replacement only) and hire of passenger motor 
vehicles; and insurance of official motor vehicles in foreign countries, 
when required by law of such countries; $26,897,000, to remain 
36 use 121b. 
available until expended: Provided, That where station allowance 
has been authorized by the Department of the Army for officers 
of the Army serving the Army at certain foreign stations, the 
same allowance shall be authorized for officers of the Armed Forces 
assigned to the Commission while serving at the same foreign 
stations, and this appropriation is hereby made available for the 
36 use 122. 
payment of such allowance: Provided further, That when traveling 
on business of the Commission, officers of the Armed Forces serving 
as members or as Secretary of the Commission may be reimbursed 
for expenses as provided for civilian members of the Commission: 
36 use 122a. 
Provided further, 
That the Commission shall reimburse other 
Government agencies, including the Armed Forces, for salary, pay, 
and allowances of personnel assigned to it. 
CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD 
SALARIES AND EXPENSES 
For necessary expenses in carrying out activities pursuant to 
section 112(r)(6) of the Clean Air Act, including hire of passenger 
vehicles, and for services authorized by 5 U.S.C. 3109, but at 
rates for individuals not to exceed the per diem equivalent to 
the maximum rate payable for senior level positions under 5 U.S.C. 
5376, $4,000,000. 
DEPARTMENT OF THE TREASURY 
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM 
ACCOUNT 
For grants, loans, and technical assistance to qualifjdng commu-
nity development lenders, and administrative expenses of the Fund, 
including services authorized by 5 U.S.C. 3109, but at rates for 
individuals not to exceed the per diem rate equivalent to the rate 
for ES-3, $80,000,000, to remain available until September 30, 
1999, of which $12,000,000 may be used for the cost of direct 
loans, and up to $1,000,000 may be used for administrative expenses 
to carry out the direct loan program: Provided, That the cost of 
direct loans, including the cost of modif3dng such loans, shall be 
as defined in section 502 of the Congressional Budget Act of 1974: 
Provided further, That these funds are available to subsidize gross 
obligations for the principal amount of direct loans not to exceed 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1369 
$32,000,000: Provided further, That not more than $25,000,000 
of the funds made available under this heading may be used for 
programs and activities authorized in section 114 of the Community 
Development Bsinking and Financial Institutions Act of 1994. 
CONSUMER PRODUCT SAFETY COMMISSION 
SALARIES AND EXPENSES 
For necessary expenses of the Consumer Product Safety 
Commission, including hire of passenger motor vehicles, services 
as authorized by 5 U.S.C. 3109, but at rates for individuals not 
to exceed the per diem rate equivalent to the maximum rate payable 
under 5 U.S.C. 5376, purchase of nominal awards to recognize 
non-Federal officials' contributions to Commission activities, and 
not to exceed $500 for official reception and representation expenses, 
$45,000,000. 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
NATIONAL AND COMMUNITY SERVICE PROGRAMS OPERATING EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the Corporation for National and 
Community Service (referred to in the matter under this heading 
as the "Corporation") in canying out programs, activities, and initia-
tives under the National and Community Service Act of 1990 
(referred to in the matter under this heading as the "Act") (42 
U.S.C. 12501 et seq.), $425,500,000, to remain available until 
September 30, 1999: Provided, That not more than $27,000,000 
shall be available for administrative expenses authorized under 
section 501(a)(4) of the Act (42 U.S.C. 12671(a)(4)): Provided further. 
That not more than $2,500 shall be for official reception and rep-
resentation expenses: Provided 
further, 
That not more than 
$70,000,000, to remain available without fiscal year limitation, shall 
be transferred to the National Service Trust account for educational 
awards authorized under subtitle D of title I of the Act (42 U.S.C. 
12601 et seq.), of which not to exceed $5,000,000 shall be available 
for national service scholarships for high school students performing 
community 
service: Provided 
further. 
That 
not 
more 
than 
$227,000,000 of the amount provided under this heading shall be 
available for grants under the National Service Trust program 
authorized under subtitle C of title I of the Act (42 U.S.C. 12571 
et seq.) (relating to activities including the Americorps program), 
of which not more than $40,000,000 may be used to administer, 
reimburse, or support any national service program authorized 
under section 121(d)(2) of such Act (42 U.S.C. 12581(d)(2)): Provided 
further, That not more than $5,500,000 of the funds made available 
under this heading shall be made available for the Points of Light 
Foundation for activities authorized under title III of the Act (42 
U.S.C. 12661 et seq.): Provided further. That no funds shall be 
available for national service programs run by Federal agencies 
authorized under section 121(b) of such Act (42 U.S.C. 12571(b)): 
Provided further, That to the maximum extent feasible, funds appro-
priated under subtitle C of title I of the jAct shall be provided 
in a manner that is consistent with the recommendations of peer 
review panels in order to ensure that priority is given to programs 
39-194 O - 97 - 10 : QL 3 Part 2 
Ill STAT. 1370 
PUBLIC LAW 105-65—OCT. 27, 1997 
that demonstrate quality, innovation, replicability, and sustain-
ability: Provided further, That not more than $18,000,000 of the 
funds made available under this heading shall be available for 
the Civilian Community Corps authorized under subtitle E of title 
I of the Act (42 U.S.C. 12611 et seq.): Provided further, 
That 
not more than $43,000,000 shall be available for school-based £ind 
community-based service-learning programs authorized under sub-
title B of title I of the Act (42 U.S.C. 12521 et seq.): Provided 
further. That not more than $30,000,000 shall be available for 
quality and innovation activities authorized under subtitle H of 
title I of the Act (42 U.S.C. 12853 et seq.): Provided further, That 
not more than $5,000,000 shall be available for audits and other 
evaluations authorized under section 179 of the Act (42 U.S.C. 
12639): Provided further. That to the maximum extent practicable, 
the Corporation shall increase significantly the level of matching 
funds and in-kind contributions provided by the private sector, 
shall expand significantly the number of educational awards pro-
vided under subtitle D of title I, and shall reduce the total Federal 
costs per participant in all programs. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$3,000,000. 
COURT OF VETERANS APPEALS 
SALARIES AND EXPENSES 
For necessary expenses for the operation of the United States 
Court of Veterans Appeals as authorized by 38 U.S.C. 7251-7298, 
$9,319,000, of which $790,000, shall be available for the purpose 
of providing financial assistance as described, and in accordance 
with the process and reporting procedures set forth, under this 
heading in Public Law 102-229. 
DEPARTMENT OF DEFENSE—CIVIL 
CEMETERIAL EXPENSES, ARMY 
SALARIES AND EXPENSES 
For necessary expenses, as authorized by law, for maintenance, 
operation, and improvement of Arlington National Cemetery and 
Soldiers' and Airmen's Home National Cemetery, including the 
purchase of two passenger motor vehicles for replacement only, 
and not to exceed $1,000 for official reception and representation 
expenses, $11,815,000, to remain available until expended. 
ENVIRONMENTAL PROTECTION AGENCY 
SCIENCE AND TECHNOLOGY 
(INCLUDING TRANSFER OF FUNDS) 
For science and technology, including research and development 
activities, which shall include research and development activities 
under the Comprehensive Environmental Response, Compensation, 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1371 
and Liability Act of 1980 (CERCLA), as amended; necessary 
expenses for personnel and related costs and travel expenses, includ-
ing uniforms, or allowances therefore, as authorized by 5 U.S.C. 
5901-5902; services as authorized by 5 U.S.C. 3109, but at rates 
for individuals not to exceed the per diem rate equivalent to the 
rate for GS-18; procurement of laboratory equipment and supplies; 
other operating expenses in support of research and development; 
construction, alteration, repair, rehabilitation, and renovation of 
facilities, not to exceed $75,000 per project, $631,000,000, which 
shall remain available imtil September 30, 1999: Provided, That 
$49,600,000 of the funds appropriated under this heading shall 
be to conduct and administer a comprehensive, peer-reviewedf, near-
and long-term particulate matter research program in accordance 
with the terms and conditions set forth for such research program 
in the conference report and joint explanatory statement of the 
committee of conference accompanying this Act (H.R. 2158): Pro-
vided further, That no later than 30 days following enactment Contracts. 
of this Act, the Environmental Protection Agency sh^l enter into 
a contract or cooperative agreement with the National Academy 
of Sciences to develop a comprehensive, prioritized, near- and long-
term pgirticulate matter research program and monitoring plan 
in accordance with the terms and conditions set forth in the con-
ference report and joint explanatory statement of the committee 
of conference accompanjdng this Act (H.R. 2158). 
ENVIRONMENTAL PROGRAMS AND MANAGEMENT 
For environmental programs and management, including nec-
essary expenses, not otherwise provided for, for personnel and 
related costs and travel expenses, including uniforms, or allowances 
therefore, as authorized by 5 U.S.C. 5901-5902; services as author-
ized by 5 U.S.C. 3109, but at rates for individuals not to exceed 
the per diem rate equivalent to the rate for GS-18; hire of passenger 
motor vehicles; hire, maintenance, and operation of aircraft; pur-
chase of reprints; library memberships in societies or associations 
which issue publications to members only or at a price to members 
lower than to subscribers who are not members; construction, alter-
ation, repair, rehabilitation, and renovation of facilities, not to 
exceed $75,000 per project; and not to exceed $6,000 for official 
reception and representation expenses, $1,801,000,000, which shall 
remain available until September 30,1999. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General in 
canying out the provisions of the Inspector General Act of 1978, 
as amended, and for construction, alteration, repair, rehabilitation, 
and renovation of facilities, not to exceed $75,000 per project, 
$28,501,000, to remain available imtil September 30,1999. 
BUILDINGS AND FACILITIES 
For construction, repair, improvement, extension, alteration, 
and purchase of fixed equipment or facilities of, or for use by, 
the Environmental Protection Agency, $109,420,000, to remain 
available until expended: Provided, That the Environmental Protec-
tion Agency is authorized to establish and construct a consolidated 
research facility at Research Triangle Park, North Carolina, at 
I l l STAT. 1372 
PUBLIC LAW 105-65—OCT. 27, 1997 
a maximum total construction cost of $272,700,000, and to obligate 
such monies as are made available by this Act for this purpose. 
HAZARDOUS 
SUBSTANCE 
SUPERFUND 
(INCLUDING 
TRANSFER 
OF 
FUNDS) 
For necessary expenses to carry out the 
Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(CERCLA), as amended, including sections 111(c)(3), (c)(5), (c)(6), 
and (e)(4) (42 U.S.C. 9611), and for construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 
per project; not to exceed $2,150,000,000 (of which $100,000,000 
shall not become available until September 1, 1998), to remain 
available until expended, consisting of $1,900,000,000, as authorized 
by section 517(a) of the Superfiind Amendments and Reauthoriza-
tion Act of 1986 (SARA), as amended by Pubhc Law 101-508, 
and $250,000,000 as a payment from general revenues to the 
Hazardous Substance Superfund as authorized by section 517(b) 
of SARA, as amended by Public Law 101-508: Provided, 
That 
funds appropriated under this heading may be allocated to other 
Federal agencies in accordance with section 111(a) of CERCLA: 
Provided further, That of the funds appropriated under this heading, 
$650,000,000 shall not become available for obligation until October 
1, 1998, and, further, shall be available for obligation only upon 
enactment by May 15, 1998, of specific legislation which reauthor-
izes the Superfund program: Provided further, That $11,641,000 
of the funds appropriated under this heading shall be transferred 
to the "Office of Inspector General" appropriation to remain 
available until September 30, 1999: Provided further. That notwith-
standing section lll(m) of CERCLA or any other provision of law, 
$74,000,000 of the funds appropriated under this heading shall 
be available to the Agency for Toxic Substances and Disease Reg-
istry to carry out activities described in sections 104(i), 111(c)(4), 
and lll(c)(14) of CERCLA and section 118(f) of SARA: Provided 
further, That $35,000,000 of the funds appropriated under this 
heading shall be transferred to the "Science and Technology" appro-
priation to remain available until September 30, 1999: Provided 
further. That none of the funds appropriated under this heading 
shall be used for Brownfields revolving loan funds unless specifically 
authorized by subsequent legislation: Provided further. That none 
of the funds appropriated under this heading shall be available 
for the Agency for Toxic Substances and Disease Registry to issue 
in excess of 40 toxicological profiles pursuant to section 104(i) 
of CERCLA during fiscal year 1998. 
LEAKING UNDERGROUND STORAGE TANK PROGRAM 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses to carry out leaking underground stor-
age tank cleanup activities authorized by section 205 of the 
Superfund Amendments and Reauthorization Act of 1986, and for 
construction, alteration, repair, rehabilitation, and renovation of 
facilities, not to exceed $75,000 per project, $65,000,000, to remain 
available until expended: Provided, That no more than $7,500,000 
shall be available for administrative expenses. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1373 
OIL SPILL RESPONSE 
(INCLUDING TRANSFER OF FUNDS) 
For expenses necessary to carry out the Environmental Protec-
tion Agency's responsibilities under the Oil Pollution Act of 1990, 
$15,000,000, to be derived from the Oil Spill Liability trust fund, 
and to remain available until expended: Provided, That not more 
than $9,000,000 of these funds shall be available for administrative 
expenses. 
STATE AND TRIBAL ASSISTANCE GRANTS 
For environmental programs and infrastructure assistance, 
including capitalization grants for State revolving funds and 
performance partnership grants, $3,213,125,000, to remain avail-
able until expended, of which $1,350,000,000 shall be for making 
capitalization grants for the Clean Water State Revolving Funds 
under title VI of the Federal Water Pollution Control Act, as 
amended, and $725,000,000 shall be for capitalization grants for 
the Drinking Water State Revolving Funds under section 1452 
of the Safe Drinking Water Act, as amended; $75,000,000 for 
architectural, engineering, planning, design, construction 
and 
related activities in connection with the construction of high priority 
water and wastewater facilities in the area of the United States-
Mexico border, after consultation with the appropriate border 
commission; $50,000,000 for grants to the State of Texas which 
shall be matched by State fimds from State resources at 20 percent 
of the Federal appropriation for the purpose of improving water 
and wastewater treatment for colonias; $15,000,000 for grants to 
the State of Alaska to address drinking water and wastewater 
infrastructure needs of rural and Alaska Native Villages as provided 
by section 303 of Pubhc Law 104-182; $253,125,000 for making 
grants for the construction of wastewater and water treatment 
facilities and groundwater protection infrastructure in accordance 
with the terms and conditions specified for such grants in the 
conference report and joint explanatory statement of the committee 
of conference accompanying this Act (H.R. 2158); and $745,000,000 33 USC 1281 
for grants to States, federally recognized tribes, and air pollution note. 
control agencies for multi-media or single media pollution preven-
tion, control and abatement and related activities pursuant to the 
provisions set forth under this heading in Public Law 104-134, 
provided that eligible recipients of these funds and the funds made 
available for this purpose since fiscal year 1996 and hereafter 
include States, federally recognized tribes, interstate agencies, tribal 
consortia, and air pollution control agencies, as provided in authoriz-
ing statutes, subject to such terms and conditions as the Adminis-
trator shall establish, and for making grants under section 103 
of the Clean Air Act for particulate matter monitoring and data 
collection activities: Provided, That, consistent with section 1452(g) 
of the Safe Drinking Water Act (42 U.S.C. 300j-12(g)), section 
302 of the Safe Drinking Water Act Amendments of 1996 (Pubhc 
Law 104-182) and the accompanying joint explanatory statement 
of the committee on conference (H. Rept. No. 104-741 to accompany 
S. 1316, the Safe Drinking Water Act Amendments of 1996), and 
notwithstanding any other provision of law. States may combine 
the assets of State Revolving Funds (SRFs) established under sec-
tion 1452 of the Safe Drinking Water Act, as amended, and title 
I l l STAT. 1374 
PUBLIC LAW 105-65—OCT. 27, 1997 
VI of the Federal Water Pollution Control Act, as amended, as 
security for bond issues to enhance the lending capacity of one 
or both SRFs, but not to acquire the State match for either program, 
provided that revenues from the bonds are allocated to the purposes 
of the Safe Drinking Water Act and the Federal Water Pollution 
Control Act in the same portion as the funds are used as security 
33 use 1281 
for the bonds: Provided further, That, hereafter from funds appro-
J^ote. 
priated under this heading, the Administrator is authorized to 
make grants to federally recognized Indian governments for the 
development of multi-media environmental programs: Provided fur-
ther, That, hereafter, the funds available under this heading for 
grants to States, federally recognized tribes, and air pollution con-
trol agencies for multi-media or single media pollution prevention, 
control and abatement and related activities may also be used 
for the direct implementation by the Federal Government of a 
program required by law in the absence of an acceptable State 
or tribal program: Provided further, That notwithstanding any other 
provision of law, in the case of a publicly owned treatment works 
in the District of Columbia, the Federal share of grants awarded 
under title II of the Federal Water Pollution Control Act, beginning 
October 1, 1997, and continuing through September 30, 1999, shall 
be 80 percent of the cost of construction, and all grants made 
to such publicly owned treatment works in the District of Columbia 
may include an advance of allowance under section 201(1)(2): Pro-
vided further. That, notwithstanding any other provision of law, 
the Administrator is authorized to make a grant of $4,326,000 
under title II of the Federal Water Pollution Control Act, as 
amended, from funds appropriated in prior years under section 
205 of the Act for the State of Florida and available due to 
deobligation, to the appropriate instrumentality for wastewater 
treatment works in Monroe County, Florida. 
WORKING CAPITAL FUND 
31 use 501 note. 
Under this heading in Public Law 104-204, delete the following: 
the phrases "franchise fund pilot to be known as the"; "as authorized 
by section 403 of Public Law 103-356,"; and "as provided in such 
section"; and the final proviso. After the phrase "to be available", 
insert "without fiscal year limitation". 
EXECUTIVE OFFICE OF THE PRESIDENT 
OFFICE OF SCIENCE AND TECHNOLOGY POLICY 
For necessary expenses of the Office of Science and Technology 
Policy, in carrying out the purposes of the National Science and 
Technology Policy, Organization, £ind Priorities Act of 1976 (42 
U.S.C. 6601 and 6671), hire of passenger motor vehicles, and 
services as authorized by 5 U.S.C. 3109, not to exceed $2,500 
for official reception and representation expenses, and rental of 
conference rooms in the District of Columbia, $4,932,000. 
COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF 
ENVIRONMENTAL QUALITY 
For necessary expenses to continue functions assigned to the 
Coiincil on Environmental Quality and Office of Environmental 
Quality pursuant to the National Environmental Policy Act of 1969, 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1375 
the Environmental Quality Improvement Act of 1970, and Reorga-
nization Plan No. 1 of 1977, $2,500,000: Provided, That, notwith-
standing any other provision of law, no funds other than those 
appropriated under this heading shall be used for or by the Council 
on Environmental Quality and Office of Environmental Quality: 
Provided further, That notwithstanding section 202 of the National 42 USC 4342 
Environmental Policy Act of 1970, the Council shall consist of note. 
one member, appointed by the President, by and with the advice 
and consent of the Senate, serving as chairman and exercising 
all powers, functions, £ind duties of the Council. 
UNANTICIPATED NEEDS 
For expenses necessary to enable the President to meet 
unanticipated needs, in furtherance of the national interest, secu-
rity, or defense which may arise at home or abroad during the 
current fiscal year, $1,000,000. 
FEDERAL DEPOSIT INSURANCE CORPORATION 
OFFICE OF INSPECTOR GENERAL 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Office of Inspector General in 
canying out the provisions of the Inspector General Act of 1978, 
as amended, $34,365,000, to be derived fi"om the Bank Insurance 
Fund, the Savings Association Insurance Fund, and the FSLIC 
Resolution Fund. 
FEDERAL EMERGENCY MANAGEMENT AGENCY 
DISASTER RELIEF 
For necessary expenses in carrying out the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
et seq.), $320,000,000, and, notwithstanding 42 U.S.C. 5203, to 
remain available until expended. 
DISASTER A S S I S T A N C E DIRECT LOAN PROGRAM ACCOUNT 
For the cost of direct loans, $1,495,000, as authorized by section 
319 of the Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act: Provided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Congressional 
Budget Act of 1974, as amended: Provided further, That these 
funds are available to subsidize gross obligations for the principal 
amount of direct loans not to exceed $25,000,000. 
In addition, for administrative expenses to carry out the direct 
loan program, $341,000. 
SALiVRIES AND EXPENSES 
For necessary expenses, not otherwise provided for, including 
hire and purchase of motor vehicles as authorized by 31 U.S.C. 
1343; uniforms, or allowances therefor, as authorized by 5 U.S.C. 
5901-5902; services as authorized by 5 U.S.C. 3109, but at rates 
for individuals not to exceed the per diem rate equivalent to the 
rate for GS-18; expenses of attendance of cooperating officials £ind 
I l l STAT. 1376 
PUBLIC LAW 105-65—OCT. 27, 1997 
Grants. 
Mississippi. 
individuals at meetings concerned with the work of emergency 
preparedness; transportation in connection with the continuity of 
Government programs to the same extent and in the same manner 
as permitted the Secretary of a MiHtary Department under 10 
U.S.C. 2632; and not to exceed $2,500 for official reception and 
representation expenses, $171,773,000. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General in 
carr3ring out the Inspector General Act of 1978, as amended, 
$4,803,000. 
EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE 
For necessary expenses, not otherwise provided for, to carry 
out activities under the National Flood Insurance Act of 1968, 
as amended, and the Flood Disaster Protection Act of 1973, as 
amended (42 U.S.C. 4001 et seq.), the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
the Earthquake Hazards Reduction Act of 1977, as amended (42 
U.S.C. 7701 et seq.), the Federal Fire Prevention and Control Act 
of 1974, as amended (15 U.S.C. 2201 et seq.), the Defense Production 
Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), sections 
107 and 303 of the National Security Act of 1947, as amended 
(50 U.S.C. 404-405), and Reorganization Plan No. 3 of 1978, 
$243,546,000: Provided, That for purposes of pre-disaster mitigation 
pursuant to 42 U.S.C. 5131(b) and (c) and 42 U.S.C. 5196(e) and 
(i), $30,000,000 of the funds made available under this heading 
shall be available until expended for project grants: Provided fur-
ther, That the Director of the Federal Emergency Management 
Agency shall make a grant for $1,500,000 to resolve issues under 
the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970, Public Law 91-646, involving the City of 
Jackson, Mississippi. 
EMERGENCY FOOD AND SHELTER PROGRAM 
To carry out an emergency food and shelter program pursuant 
to title III of Public Law 100-77, as amended, $100,000,000: Pro-
vided, That total administrative costs shall not exceed three and 
one-half percent of the total appropriation. 
NATIONAL FLOOD INSURANCE FUND 
(INCLUDING TRANSFER OF FUNDS) 
For activities under the National Flood Insurance Act of 1968, 
the Flood Disaster Protection Act of 1973, and the National Flood 
Insurance Reform Act of 1994, not to exceed $21,610,000 for salaries 
and expenses associated with flood mitigation and flood insurance 
operations, and not to exceed $78,464,000 for flood mitigation, 
including up to $20,000,000 for expenses under section 1366 of 
the National Flood Insurance Act, which amount shall be available 
for transfer to the National Flood Mitigation Fund until September 
30, 1999. In fiscal year 1998, no funds in excess of: (1) $47,000,000 
for operating expenses; (2) $375,165,000 for agents' commissions 
and taxes; and (3) $50,000,000 for interest on Treasury borrowings 
shall be available from the National Flood Insurance Fund without 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1377 
prior notice to the Committees on Appropriations. For fiscal year 
1998, flood insurance rates shall not exceed the level authorized 
by the NationaJ Flood Insurance Reform Act of 1994. 
Section 1309(a)(2) of the National Flood Insurance Act (42 
U.S.C. 4016(a)(2)), as amended by Public Law 104-208, is further 
amended by striking "1997" and inserting "1998". 
Section 1319 of the National Flood Insurance Act of 1968, 
as amended (42 U.S.C. 4026), is amended by striking "October 
23,1997" and inserting "September 30, 1998". 
Section 1336 of the National Flood Insurance Act of 1968, 
as Eimended (42 U.S.C. 4056), is amended by striking "October 
23,1997" and inserting "September 30, 1998". 
The first sentence of section 1376(c) of the National Flood 
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is amended 
by striking all after "to be appropriated" and inserting "such sums 
as may be necessary through September 30, 1998, for studies under 
this title.". 
ADMINISTRATIVE PROVISION 
The Director of the Federal Emergency Management Agency Regulations, 
shall promulgate through rulemaking a methodology for assessment 
and collection of fees to be assessed and collected beginning in 
fiscal year 1998 applicable to persons subject to the Federal Emer-
gency Management Agenc^s radiological emergency preparedness 
regulations. The aggregate charges assessed pursu£int to this section 
during fiscal year 1998 shall approximate, but not be less than, 
100 percent of the amounts anticipated by the Federal Emergency 
Management Agency to be obligated for its radiological emergency 
preparedness program for such fiscal year. The methodology for 
assessment and collection of fees shall be fair and equitable, and 
shall reflect the full amount of costs of providing radiological emer-
§ency planning, preparedness, response and associated services, 
uch fees shall be assessed in a manner that reflects the use 
of agency resources for classes of regulated persons and the adminis-
trative costs of collecting such fees. Fees received pursuant to 
this section shall be deposited in the general fund of the Treasury 
as offsetting receipts. Assessment and collection of such fees are 
only authorized during fiscal year 1998. 
GENERAL SERVICES ADMINISTRATION 
CONSUMER INFORMATION CENTER FUND 
For necessary expenses of the Consumer Information Center, 
including services authorized by 5 U.S.C. 3109, $2,419,000, to be 
deposited into the Consumer Information Center Fund: Provided, 
That the appropriations, revenues and collections deposited into 
the fund shall be available for necessary expenses of Consumer 
Information Center activities in the aggregate amount of $7,500,000. 
Appropriations, revenues, and collections accruing to this fund dur-
ing fiscal year 1998 in excess of $7,500,000 shall remain in the 
fiind and shall not be available for expenditure except as authorized 
in appropriations Acts: Provided further, That notwithstanding any 40 USC 76la. 
other provision of law, the Consumer Information Center may accept 
and deposit to this account, during fiscal year 1998 and hereafter, 
gift;s for the purpose of defraying its costs of printing, publishing, 
and distributing consumer information and educational materials 
I l l STAT. 1378 
PUBLIC LAW 105-65—OCT. 27, 1997 
and undertaking other consumer information activities; may expend 
those gifts for those purposes, in addition to amounts appropriated 
or otherwise made available; and the balance shall remain available 
for expenditure for such purpose. 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 
HUMAN SPACE FLIGHT 
For necessary expenses, not otherwise provided for, in the 
conduct and support of human space flight research and develop-
ment activities, including research, development, operations, and 
services; maintenance; construction of facilities including repair, 
rehabilitation, and modification of real and personal property, and 
acquisition or condemnation of real property, as authorized by law; 
space flight, spacecraft control and communications activities 
including operations, production, and services; and purchase, lease, 
charter, maintenance and operation of mission and administrative 
aircraft, $5,506,500,000, to remain available until September 30, 
1999: Provided, That of the $2,351,300,000 made available under 
this heading for Space Station activities, only $1,500,000,000 shall 
be available before March 31, 1998. 
SCIENCE, AERONAUTICS AND TECHNOLOGY 
For necessary expenses, not otherwise provided for, in the 
conduct and support of science, aeronautics £ind technology research 
and development 
activities, including research, 
development, 
operations, and services; maintenance; construction of facilities 
including repair, rehabilitation, and modification of real and per-
sonal property, and acquisition or condemnation of real property, 
as authorized by law; space flight, spacecraft control and commu-
nications activities including operations, production, and services; 
and purchase, lease, charter, maintenance and operation of mission 
and administrative aircraft, $5,690,000,000, to remain available 
until September 30, 1999. 
MISSION SUPPORT 
For necessary expenses, not otherwise provided for, in carrying 
out mission support for human space flight programs 
and 
science, aeronautical, and technology programs, including research 
operations and support; space communications activities including 
operations, production and services; maintenance; construction of 
facilities including repair, rehabilitation, and modification of facili-
ties, minor construction of new facilities and additions to existing 
facilities, facility planning and design, environmental compliance 
and restoration, and acquisition or condemnation of real property, 
as authorized by law; program management; personnel and related 
costs, including uniforms or allowances therefor, as authorized by 
5 U.S.C. 5901-5902; travel expenses; purchase, lease, charter, 
maintenance, and operation of mission and administrative aircraft; 
not to exceed $35,000 for official reception and representation 
expenses; and purchase (not to exceed 33 for replacement only) 
and hire of passenger motor vehicles; $2,433,200,000, to remain 
available until September 30, 1999. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1379 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$18,300,000. 
ADMINISTRATIVE PROVISIONS 
Notwithstanding the limitation on the availability of funds 
appropriated for "Human space flight", "Science, aeronautics and 
technology", or "Mission support" by this appropriations Act, when 
any activity has been initiated by the incurrence of obligations 
for construction of facilities as authorized by law, such amount 
available for such activity shall remain available until expended. 
This provision does not apply to the amounts appropriated in "Mis-
sion support" pursuant to the authorization for repair, rehabilitation 
and modification of facilities, minor construction of new facilities 
and additions to existing facilities, and facility planning and design. 
Notwithst£inding the limitation on the availability of funds 
appropriated for "Human space flight", "Science, aeronautics and 
technology", or "Mission support" by this appropriations Act, the 
amounts appropriated for construction of facilities shall remain 
available until September 30, 2000. 
Notwithstanding the limitation on the availability of funds 
appropriated for "Mission support" and "Office of Inspector Gen-
eral", amounts made available by this Act for personnel and related 
costs and travel expenses of the National Aeronautics and Space 
Administration shall remain available until September 30, 1998 
and may be used to enter into contracts for training, investigations, 
costs associated with personnel relocation, and for other services, 
to be provided during the next fiscal year. 
Of the funds provided to the National Aeronautics and Space Reports. 
Administration in this Act, the Administrator shall by November 
1, 1998, make available no less than $400,000 for a study by 
the National Research Coimcil, with an interim report to be com-
pleted by Jime 1, 1998, that evaluates, in terms of the potential 
impact on the Space Station's assembly schedule, budget, and 
capabilities, the engineering challenges posed by extravehicular 
activity (EVA) requirements. United States and non-United States 
space laiuich requirements, the potential need to upgrade or replace 
equipment and components after assembly complete, and the 
requirement to decommission and disassemble the facility. 
NATIONAL CREDIT UNION ADMINISTRATION 
CENTRAL LIQUIDITY FACILITY 
During fiscal year 1998, gross obligations of the Central Liquid-
ity Facility for the principal amount of new direct loans to member 
credit unions, as authorized by the National Credit Union Central 
Liquidity 
Facility Act (12 U.S.C. 
1795), shall not exceed 
$600,000,000: Provided, 
That administrative expenses of the 
Central Liquidity Facility in fiscal year 1998 shall not exceed 
$203,000: Provided further, That $1,000,000, together with amoxmts 
of principal and interest on loans repaid, to be available until 
expended, is available for loans to community development credit 
unions. 
I l l STAT. 1380 
PUBLIC LAW 105-65—OCT. 27, 1997 
NATIONAL SCIENCE FOUNDATION 
RESEARCH AND RELATED ACTIVITIES 
For necessary expenses in carrying out the National Science 
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and 
the Act to estabhsh a National Medal of Science (42 U.S.C. 1880-
1881); services as authorized by 5 U.S.C. 3109; maintenance and 
operation of aircraft and purchase of flight services for research 
support- acquisition of aircraft; $2,545,700,000, of which not to 
exceed $228,530,000 shall remain available until expended for Polar 
research and operations support, and for reimbursement to other 
Federal agencies for operational and science support and logistical 
and other related activities for the United States Antarctic program; 
the balance to remain available until September 30, 1999: Provided, 
That receipts for scientific support services £ind materials furnished 
by the National Research Centers and other National Science 
Foundation supported research facilities may be credited to this 
appropriation: Provided further, That to the extent that the amount 
appropriated is less than the total amount authorized to be appro-
priated for included program activities, all amounts, including floors 
and ceilings, specified in the authorizing Act for those program 
activities or their subactivities shall be reduced proportionally: Pro-
vided further. That $40,000,000 of the funds available under this 
heading shall be made available for a comprehensive research initia-
tive on plant genomes for economically significant crops. 
MAJOR RESEARCH EQUIPMENT 
For necessary expenses of major construction projects pursuant 
to the National Science Foundation Act of 1950, as amended, 
$109,000,000, to remain available until expended, of which 
$35,000,000 shall become available on September 30, 1998. 
EDUCATION AND HUMAN RESOURCES 
For necessary expenses in carr)dng out science and engineering 
education and human resources programs and activities pursuant 
to the National Science Foundation Act of 1950, as amended (42 
U.S.C. 1861-1875), including services as authorized by 5 U.S.C. 
3109 and rental of conference rooms in the District of Columbia, 
$632,500,000, to remain available until September 30, 1999: Pro-
vided, That to the extent that the amount of this appropriation 
is less than the total amount authorized to be appropriated for 
included program activities, all amounts, including floors and ceil-
ings, specified in the authorizing Act for those program activities 
or their subactivities shall be reduced proportionally. 
SALARIES AND EXPENSES 
For salaries and expenses necessary in carrjdng out the 
National Science Foundation Act of 1950, as amended (42 U.S.C. 
1861-1875); services authorized by 5 U.S.C. 3109; hire of passenger 
motor vehicles; not to exceed $9,000 for official reception and rep-
resentation expenses; uniforms or allowances therefor, as authorized 
by 5 U.S.C. 5901-5902; rental of conference rooms in the District 
of Columbia; reimbursement of the General Services Administration 
for 
security 
guard 
services 
and 
headquarters 
relocation; 
$136,950,000: Provided, That contracts may be entered into under 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1381 
"Salaries and expenses" in fiscal year 1998 for maintenance and 
operation of facilities, and for other services, to be provided during 
the next fiscal year. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General as 
authorized by the Inspector General Act of 1978, as amended, 
$4,850,000, to remain available until September 30, 1999. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
PAYMENT TO THE NEIGHBORHOOD REINVESTMENT CORPORATION 
For payment to the Neighborhood Reinvestment Corporation 
for use in neighborhood reinvestment activities, as authorized by 
the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101-
8107), $60,000,000. 
SELECTIVE SERVICE SYSTEM 
SALARIES AND EXPENSES 
For necessary expenses of the Selective Service System, includ-
ing expenses of attendance at meetings and of training for uni-
formed personnel assigned to the Selective Service System, as 
authorized by 5 U.S.C. 4101-4118 for civilian employees; and not 
to exceed $1,000 for official reception and representation expenses; 
$23,413,000: Provided, That during the current fiscal year, the 
President may exempt this appropriation from the provisions of 
31 U.S.C. 1341, whenever he deems such action to be necessary 
in the interest of national defense: Provided further, That none 
of the funds appropriated by this Act may be expended for or 
in connection with the induction of any person into the Armed 
Forces of the United States. 
TITLE IV—GENERAL PROVISIONS 
SEC. 401. Where appropriations in titles I, II, and III of this 
Act are expendable for travel expenses and no specific limitation 
has been placed thereon, the expenditures for such travel expenses 
may not exceed the amounts set forth therefore in the budget 
estimates submitted for the appropriations: Provided, That this 
provision does not apply to accounts that do not contain an object 
classification for travel: Provided further. That this section shall 
not apply to travel performed by uncompensated officials of local 
boards and appeal boards of the Selective Service System; to travel 
performed directly in connection with care and treatment of medical 
beneficiaries of the Department of Veterans Affairs; to travel per-
formed in connection with major disasters or emergencies declared 
or determined by the President under the provisions of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act; to travel 
performed by the Offices of Inspector General in connection with 
audits and investigations; or to pa5nnents to interagency motor 
pools where separately set forth in the budget schedules: Provided 
further. That if appropriations in titles I, II, and III exceed the 
amounts set forth in budget estimates initially submitted for such 
appropriations, the expenditures for travel may correspondingly 
I l l STAT. 1382 
PUBLIC LAW 105-65—OCT. 27, 1997 
exceed the amounts therefore set forth in the estimates in the 
same proportion. 
SEC. 402. Appropriations and funds available for the adminis-
trative expenses of the Department of Housing and 
Urban 
Development £ind the Selective Service System shall be available 
in the current fiscal year for purchase of uniforms, or allowances 
therefor, as authorized by 5 U.S.C. 5901-5902; hire of passenger 
motor vehicles; and services as authorized by 5 U.S.C. 3109. 
SEC. 403. Funds of the Department of Housing and Urban 
Development subject to the Government Corporation Control Act 
or section 402 of the Housing Act of 1950 shall be available, without 
regard to the limitations on administrative expenses, for legal serv-
ices on a contract or fee basis, and for utilizing and making payment 
for services and facilities of Federal National Mortgage Association, 
Government National Mortgage Association, Federal Home Loan 
Mortgage Corporation, Federal Financing Bank, Federal Reserve 
banks or any member thereof. Federal Home Loan banks, and 
any insured bank within the meaning of the Federal Deposit Insur-
ance Corporation Act, as amended (12 U.S.C. 1811-1831). 
SEC. 404. No part of any appropriation contained in this Act 
shall remain available for obligation beyond the current fiscal year 
unless expressly so provided herein. 
SEC. 405. No funds appropriated by this Act may be expended— 
(1) pursuant to a certification of an officer or employee 
of the United States unless— 
(A) such certification is accompanied by, or is part 
of, a voucher or abstract which describes the payee or 
payees and the items or services for which such expenditure 
is being made; or 
(B) the expenditure of funds 
pursuant to such 
certification, and without such a voucher or abstract, is 
specifically authorized by law; and 
(2) unless such expenditure is subject to audit by the Gen-
eral Accounting Office or is specifically exempt by law from 
such audit. 
SEC. 406. None of the funds provided in this Act to any depart-
ment or agency may be expended for the transportation of any 
officer or employee of such department or agency between his 
domicile and his place of employment, with the exception of any 
officer or employee authorized such transportation under 31 U.S.C. 
1344 or 5 U.S.C. 7905. 
SEC. 407. None of the funds provided in this Act may be 
used for pajnnent, through grants or contracts, to recipients that 
do not share in the cost of conducting research resulting from 
proposals not specifically solicited by the Government: Provided, 
That the extent of cost sharing by the recipient shall reflect the 
mutuality of interest of the grantee or contractor and the Govern-
ment in the research. 
SEC. 408. None of the funds in this Act may be used, directly 
or through grants, to pay or to provide reimbursement for pa5mient 
of the salary of a consultsmt (whether retained by the Federal 
Government or a grantee) at more than the daily equivalent of 
the rate paid for level IV of the Executive Schedule, unless specifi-
cally authorized by law. 
SEC. 409. None of the funds provided in this Act shall be 
used to pay the expenses of, or otherwise compensate, non-Federal 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1383 
Contracts. 
Public 
information. 
Records. 
parties intervening in regulatory or adjudicatory proceedings. Noth-
ing herein affects the authority of the Consumer Product Safety 
Commission pursuant to section 7 of the Consumer Product Safety 
Act (15 U.S.C. 2056 et seq.). 
SEC. 410. Except as otherwise provided under existing law 
or under am existing Executive order issued pursuant to an existing 
law, the obligation or expenditure of any appropriation under this 
Act for contracts for any consulting service shall be limited to 
contracts which are: (1) a matter of public record and available 
for public inspection; and (2) thereafter included in a publicly avail-
able list of all contracts entered into within 24 months prior to 
the date on which the list is made available to the public and 
of all contracts on which performance has not been completed 
by such date. The list required by the preceding sentence shall 
be updated quarterly and shall include a narrative description 
of the work to be performed under each such contract. 
SEC. 411. Except as otherwise provided by law, no part of 
any appropriation contained in this Act shall be obligated or 
expended by any executive agency, as referred to in the Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), for 
a contract for services unless such executive agency: (1) has awarded 
and entered into such contract in full compliance with such Act 
£ind the regulations promulgated thereunder; and (2) requires any 
report prepared pursuant to such contract, including plans, evalua-
tions, studies, analyses and manuals, and any report prepared 
by the agency which is substantially derived from or substantially 
includes any report prepared pursuant to such contract, to contain 
information concerning: (A) the contract pursuant to which the 
report was prepared; and (B) the contractor who prepared the 
report pursuant to such contract. 
SEC. 412. Except as otherwise provided in section 406, none 
of the funds provided in this Act to any department or agency 
shall be obligated or expended to provide a personal cook, chauffeur, 
or other personal servants to any officer or employee of such depart-
ment or agency. 
SEC. 413. None of the funds provided in this Act to any depart-
ment or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated 
miles per gallon average of less thsin 22 miles per gallon. 
SEC. 414. None of the funds appropriated in title I of this Reports. 
Act shall be used to enter into any new lease of real property 
if the estimated annual rental is more than $300,000 unless the 
Secretary submits, in writing, a report to the Committees on Appro-
priations of the Congress and a period of 30 days has expired 
following the date on which the report is received by the Committees 
on Appropriations. 
SEC. 415. (a) It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products purchased 
with funds made available in this Act should be American-made. 
(b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, 
the head of each Federal agency, to the greatest extent practicable, 
shall provide to such entity a notice describing the statement made 
in subsection (a) by the Congress. 
SEC. 416. None of the funds appropriated in this Act may 
be used to implement any cap on reimbursements to grantees 
Notice. 
I l l STAT. 1384 
PUBLIC LAW 105-65—OCT. 27, 1997 
Termination. 
Multifamily 
Assisted Housing 
Reform and 
Affordability Act 
of 1997. 
for indirect costs, except as published in Office of Management 
and Budget Circular A-21. 
SEC. 417. Such sums as may be necessary for fiscal year 1998 
pay raises for programs funded by this Act shall be absorbed within 
the levels appropriated in this Act. 
SEC. 418. None of the funds made available in this Act may 
be used for £iny program, project, or activity, when it is made 
known to the Federal entity or official to which the funds are 
made available that the program, project, or activity is not in 
compliance with any Federal law relating to risk assessment, the 
protection of private property rights, or unfunded mandates. 
SEC. 419. Corporations and agencies of the Department of Hous-
ing and Urban Development which are subject to the Government 
Corporation Control Act, as amended, are hereby authorized to 
make such expenditures, within the limits of funds and borrowing 
authority available to each such corporation or agency and in accord 
with law, and to make such contracts and commitments without 
regard to fiscal year limitations as provided by section 104 of 
the Act as may be necessary in carrying out the programs set 
forth in the budget for 1998 for such corporation or agency except 
as hereinafter provided: Provided, That collections of these corpora-
tions and agencies may be used for new loan or mortgage purchase 
commitments only to the extent expressly provided for in this 
Act (unless such loans are in support of other forms of assistance 
provided for in this or prior appropriations Acts), except that this 
proviso shall not apply to the mortgage insurance or guaranty 
operations of these corporations, or where loans or mortgage pur-
chases are necessary to protect the financial interest of the United 
States Government. 
SEC. 420. Notwithstanding section 320(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1330(g)), fiinds made available 
pursuant to authorization under such section for fiscal year 1998 
and prior fiscal years may be used for implementing comprehensive 
conservation and management plans. 
SEC. 421. Such fiinds as may be necessary to carry out the 
orderly termination of the Office of Consumer Affairs shall be 
made available from funds appropriated to the Department of 
Health and Human Services for fiscal year 1998. 
SEC. 422. Notwithstanding any other provision of law, the 
term "qualified student loan" with respect to national service edu-
cation awards shall mean any loan made directly to a student 
by the Alaska Commission on Postsecondary Education, in addition 
to other meanings under section 148(b)(7) of the National and 
Community Service Act. 
TITLE V—HUD MULTIFAMILY HOUSING REFORM 
SEC. 501. TABLE OF CONTENTS. 
The table of contents for this title is as follows: 
TITLE V—HUD MULTIFAMILY HOUSING REFORM 
Sec. 510. Short title. 
SUBTITLE A—FHA-INSURED MULTIFAMILY HOUSING MORTGAGE AND HOUSING 
ASSISTANCE RESTRUCTURING 
Sec. 511. Findings and purposes. 
Sec. 512. Definitions. 
Sec. 513. Authority of participating administrative entities. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1385 
Sec. 514. Mortgage restructuring and rental assistance sufficiency plan. 
Sec. 515. Section 8 renewals and long-term affordability commitment by owner of 
project. 
Sec. 516. Prohibition on restructuring. 
Sec. 517. Restructuring tools. 
Sec. 518. Management standards. 
Sec. 519. Monitoring of compliance. 
Sec. 520. Reports to Congress. 
Sec. 521. GAO audit and review. 
Sec. 522. Regulations. 
Sec. 523. Technical and conforming amendments. 
Sec. 524. Section 8 contract renewals. 
SUBTITLE B—MISCELLANEOUS PROVISIONS 
Sec. 531. Rehabilitation grants for certain insured projects. 
Sec. 532. GAO report on section 8 rental assistance for multifamily housing 
projects. 
SUBTITLE C—ENFORCEMENT PROVISIONS 
Sec. 541. Implementation. 
Sec. 542. Income verification. 
PART 1—FHA SINGLE FAMILY AND MULTIFAMILY HOUSING 
Sec. 551. Authorization to immediately suspend mortgagees. 
Sec. 552. Extension of equity skimming to other smgle family and multifamily 
housing programs. 
Sec. 553. Civil money penalties against mortgagees, lenders, and other participants 
in FHA programs. 
PART 2—FHA MULTIFAMILY PROVISIONS 
Sec. 561. Civil money penalties against general partners, officers, directors, and 
certain managing agents of multifamily projects. 
Sec. 562. Civil money penalties for noncompliance with section 8 HAP contracts. 
Sec. 563. Extension of double damages remedy. 
Sec. 564. Obstruction of Federal audits. 
SUBTITLE D—OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING 
Sec. 571. Establishment of Office of Multifamily Housing Assistance Restructuring. 
Sec. 572. Director. 
Sec. 573. Duty and authority of Director. 
Sec. 574. Personnel. 
Sec. 575. Budget and financial reports. 
Sec. 576. Limitation on subsequent employment. 
Sec. 577. Audits bjr GAO. 
Sec. 578. Suspension of program because of failure to appoint Director. 
Sec. 579. Termination. 
SEC. 510. SHORT TITLE. 
12 USC 1701 
This title may be cited as the "Multifamily Assisted Housing 
Reform and Affordability Act of 1997". 
Subtitle A—FHA-Insured Multifamily Housing 
Mortgage and Housing Assistance Restructuring 
SEC. 511. FINDINGS AND PURPOSES. 
42 USC 1437f 
(a) FINDINGS.—Congress finds that— 
'^°*®' 
(1) there exists throughout the Nation a need for decent, 
safe, and affordable housing; 
(2) as of the date of enactment of this Act, it is estimated 
that— 
(A) the insured multifamily housing portfolio of the 
Federal Housing Administration consists of 14,000 rental 
properties, with an aggregate unpaid principal mortgage 
balance of $38,000,000,000; and 
(B) approximately 10,000 of these properties contain 
housing units that are assisted with project-based rental 
I l l STAT. 1386 
PUBLIC LAW 105-65—OCT. 27, 1997 
3 
assistance under section 8 of the United States Housing 
Act of 1937; 
(3) FHA-insured multifamily rental properties are a major 
Federal investment, providing affordable rental housing to an 
estimated 2,000,000 low- and very low-income families; 
(4) approximately 1,600,000 of these families live in dwell-
ing imits that are assisted with project-based rental assistance 
under section 8 of the United States Housing Act of 1937; 
(5) a substantial number of housing units receiving project-
based assistance have rents that are higher than the rents 
of comparable, unassisted rental units in the same housing 
rental market; 
(6) many of the contracts for project-based assistance will 
expire during the several years following the date of enactment 
of this Act; 
(7) it is estimated that— 
(A) if no changes in the terms and conditions of the 
contracts for project-based assistance are made before fiscal 
year 2000, the cost of renewing all expiring rental assist-
ance contracts under section 8 of the United States Housing 
Act of 1937 for both project-based and tenant-based rental 
assistsince will increase from approximately $3,600,000,000 
in fiscal year 1997 to over $14,300,000,000 by fiscal year 
2000 and some $22,400,000,000 in fiscal year 2006; 
(B) of those renewal amounts, the cost of renewing 
project-based assistance will increase from $1,200,000,000 
in fiscal year 1997 to almost $7,400,000,000 by fiscal year 
2006; and 
(C) without changes in the manner in which project-
based rental assistance is provided, renewals of expiring 
contracts for project-based rental assistance will require 
an increasingly larger portion of the discretionary budget 
authority of the Department of Housing and Urban Devel-
opment in each subsequent fiscal year for the foreseeable 
future; 
(8) absent new budget authority for the renewal of expiring 
rental contracts for project-based assistance, many of the FHA-
insured multifamily housing projects that are assisted with 
project-based assistance are likely to default on their FHA-
insured mortgage pa3anents, resulting in substantial claims 
to the FHA General Insurance Fund and Special Risk Insurance 
Fund; 
(9) more than 15 percent of federally assisted multifamily 
housing projects are physically or financially distressed, includ-
ing a number which suffer from mismanagement; 
(10) due to Federal budget constraints, the downsizing 
of the Department of Housing and Urban Development, and 
diminished administrative capacity, the Department lacks the 
ability to ensure the continued economic and physical well-
being of the stock of federally insured and assisted multifamily 
housing projects; 
(11) the economic, physical, and management problems 
facing the stock of federally insured and assisted multifamily 
housing projects will be best served by reforms that— 
(A) reduce the cost of Federal rental assistance, includ-
ing project-based assistance, to these projects by reducing 
the debt service and operating costs of these projects while 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1387 
retaining the low-income affordability and availability of 
this housing; 
(B) address physical and economic distress of this hous-
ing and the failure of some project managers and owners 
of projects to comply with management and ownership 
rules and requirements; and 
(C) transfer and share many of the loan and contract 
administration functions and responsibilities of the Sec-
retary to and with capable State, local, and other entities; 
and 
(12) the authority and duties of the Secretary, not including 
the control by the Secretary of applicable accounts in the Treas-
ury of the United States, may be delegated to State, local 
or other entities at the discretion of the Secretary, to the 
extent the Secretary determines, and for the purpose of carrying 
out this Act, so that the Secretary has the discretion to be 
relieved of processing and approving any document or action 
required by these reforms. 
(b) PURPOSES.—Consistent with the purposes and requirements 
of the Government Performance and Results Act of 1993, the pur-
poses of this subtitle are— 
(1) to preserve low-income rental housing affordability and 
availability while reducing the long-term costs of project-based 
assistance; 
(2) to reform the design and operation of Federal rental 
housing assistance programs, administered by the Secretary, 
to promote greater multifamily housing project operating and 
cost efficiencies; 
(3) to encourage owners of eligible multifamily housing 
projects to restructure their FHA-insured mortgages and 
project-based assistance contracts in a manner that is consist-
ent with this subtitle before the year in which the contract 
expires; 
(4) to reduce the cost of insurance claims under the 
National Housing Act related to mortgages insured by the 
Secretary and used to finance eligible multifamily housing 
projects; 
(5) to streamline and improve federally insured and 
assisted multifamily housing project oversight and administra-
tion; 
(6) to resolve the problems affecting 
financially 
and 
physically troubled federally insured and assisted multifamily 
housing projects through cooperation with residents, owners. 
State and local governments, and other interested entities and 
individuals; 
(7) to protect the interest of project owners and msmagers, 
because they are partners of the Federal Government in meet-
ing the affordable housing needs of the Nation through the 
section 8 rental housing assistance program; 
(8) to protect the interest of tenants residing in the multi-
family housing projects at the time of the restructuring for 
the housing; and 
(9) to grant additional enforcement tools to use against 
those who violate agreements and program requirements, in 
order to ensure that the public interest is safeguarded and 
that Federal multifamily housing programs serve their intended 
purposes. 
I l l STAT. 1388 
PUBLIC LAW 105-65—OCT. 27, 1997 
42 use 1437f 
SEC. 512. DEFINITIONS. 
note. 
In this subtitle: 
(1) COMPARABLE PROPERTIES.—The term "comparable prop-
erties" means properties in the same market areas, where 
practicable, that— 
(A) are similar to the eligible multifamily housing 
project as to neighborhood (including risk of crime), type 
of location, access, street appeal, age, property size, apart-
ment mix, physical configuration, property and unit amen-
ities, utilities, and other relevant characteristics; and 
(B) are not receiving project-based assistance. 
(2) ELIGIBLE MULTIFAMILY HOUSING PROJECT.—The term 
"eligible multifamily housing project" means a property consist-
ing of more than 4 dwelling units— 
(A) with rents that, on an average per unit or per 
room basis, exceed the rent of comparable properties in 
the same market area, determined in accordance with 
guidelines established by the Secretary; 
(B) that is covered in whole or in part by a contract 
for project-based assistsince under— 
(i) the new construction or substantial rehabilita-
tion program under section 8(b)(2) of the United States 
Housing Act of 1937 (as in effect before October 1, 
1983); 
(ii) the property disposition program under section 
8(b) of the United States Housing Act of 1937; 
(iii) the moderate rehabilitation program under 
section 8(e)(2) of the United States Housing Act of 
1937; 
(iv) the loan management assistance program 
under section 8 of the United States Housing Act of 
1937; 
(v) section 23 of the United States Housing Act 
of 1937 (as in effect before January 1,1975); 
(vi) the rent supplement program under section 
101 of the Housing and Urban Development Act of 
1965; or 
(vii) section 8 of the United States Housing Act 
of 1937, following conversion from assistance under 
section 101 of the Housing and Urban Development 
Act of 1965; and 
(C) financed by a mortgage insured or held by the 
Secretary under the National Housing Act. 
(3) EXPIRING CONTRACT.—The term "expiring contract" 
means a project-based assistance contract attached to an 
eligible multifamily housing project which, under the terms 
of the contract, will expire. 
(4) EXPIRATION DATE.—The term "expiration date" means 
the date on which an expiring contract expires. 
(5) FAIR MARKET RENT.—The term "fair market rent" means 
the fair market rental established imder section 8(c) of the 
United States Housing Act of 1937. 
(6) LOW-INCOME FAMILIES.—The term "low-income families" 
has the same meaning as provided imder section 3(b)(2) of 
the United States Housing Act of 1937. 
(7) 
MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE 
SUFFICIENCY PLAN.—The term "mortgage restructuring and 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1389 
rental assistance sufficiency plan" means the plan as provided 
under section 514. 
(8) 
NONPROFIT 
ORGANIZATION.—The 
term 
"nonprofit 
organization" means any private 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; 
and 
(C) has a long-term record of service in providing or 
financing quality affordable housing for low-income families 
through relationships with public entities. 
(9) PORTFOLIO RESTRUCTURING AGREEMENT.—The term 
"portfolio restructuring agreement" means the 
agreement 
entered into between the Secretary and a participating adminis-
trative entity, as provided under section 513. 
(10) PARTICIPATING ADMINISTRATIVE ENTITY.—The term 
"participating administrative entity" means a public agency 
(including a State housing finance agency or a local housing 
agency), a nonprofit organization, or any other entity (including 
a law firm or an accounting firm) or a combination of such 
entities, that meets the requirements under section 513(b). 
(11) PROJECT-BASED ASSISTANCE.—The term "project-based 
assistance" means rental assistance described in paragraph 
(2)(B) of this section that is attached to a multifamily housing 
project. 
(12) RENEWAL.—The term "renewal" means the replace-
ment of an expiring Federal rental contract with a new contract 
under section 8 of the United States Housing Act of 1937, 
consistent with the requirements of this subtitle. 
(13) SECRETARY.—The term "Secretary" means the Sec-
retary of Housing and Urban Development. 
(14) STATE.—The term "State" has the same meaning as 
in section 104 of the Cranston-Gonzalez National Affordable 
Housing Act. 
(15) TENANT-BASED ASSISTANCE.—The term "tenant-based 
assistance" has the same meaning as in section 8(f) of the 
United States Housing Act of 1937. 
(16) UNIT OF GENERAL LOCAL GOVERNMENT.—The term 
"unit of general local government" has the same meaning as 
in section 104 of the Cranston-Gonzalez National Affordable 
Housing Act. 
(17) VERY LOW-INCOME FAMILY.—The term "very low-
income family has the same meaning as in section 3(b) of 
the United States Housing Act of 1937. 
(18) QUALIFIED MORTGAGEE.—The term "qualified mortga-
gee" mesms an entity approved by the Secretary that is capable 
of servicing, as well as originating, FHA-insured mortgages, 
and that— 
(A) is not suspended or debarred by the Secretary; 
(B) is not suspended or on probation imposed by the 
Mortgagee Review Board; and 
(C) is not in default under any Government National 
Mortgage Association obligation. 
SEC. 513. AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES. 
42 USC 1437f 
(a) PARTICIPATING ADMINISTRATIVE ENTITIES.— 
^°^' 
Ill STAT. 1390 
PUBLIC LAW 105-65—OCT. 27, 1997 
Contracts. 
(1) IN GENERAL.—Subject to subsection (b)(3), the Secretary 
shall enter into portfolio restructuring 
agreements 
with 
participating administrative entities for the implementation of 
mortgage restructuring and rental assistance sufficiency plans 
to restructure multifamily housing mortgages insured or held 
by the Secretary under the National Housing Act, in order 
to— 
(A) reduce the costs of expiring contracts for assistance 
under section 8 of the United States Housing Act of 1937; 
(B) address financially and physically troubled projects; 
and 
(C) correct management and ownership deficiencies. 
(2) PORTFOLIO RESTRUCTURING AGREEMENTS.—Each port-
folio restructuring agreement entered into under this subsection 
shall— 
(A) be a cooperative agreement to establish the obliga-
tions and requirements between the Secretary and the 
participating administrative entity; 
(B) identify the eligible multifamily housing projects 
or groups of projects for which the participating administra-
tive entity is responsible for assisting in developing and 
implementing approved mortgage restructuring and rental 
assistance sufficiency plans under section 514; 
(C) require the participating administrative entity to 
review and certify to the accuracy and completeness of 
the evgJuation of rehabilitation needs required under sec-
tion 514(e)(3) for each eligible multifamily housing project 
included in the portfolio restructuring agreement, in accord-
ance with regulations promulgated by the Secretary; 
(D) identify the responsibilities of both the participat-
ing administrative entity and the Secretary in implement-
ing a mortgage restructuring 
and rental 
assistance 
sufficiency plan, including any actions proposed to be taken 
under section 516 or 517; 
(E) require each mortgage restructuring and rental 
assistance sufficiency plan to be prepared in accordance 
with the requirements of section 514 for each eligible multi-
family housing project; 
(F) include other requirements established by the Sec-
retary, including a right of the Secretary to terminate 
the contract immediately for failure of the participating 
administrative entity to comply with any 
applicable 
requirement; 
(G) if the participating administrative entity is a State 
housing finance 
agency or a local housing 
agency, 
indemnify the participating administrative entity against 
lawsuits and penalties for actions taken pursuant to the 
agreement, excluding actions involving willful misconduct 
or negligence; 
(H) include compensation for all reasonable expenses 
incurred by the participating administrative entity nec-
essary to perform its duties under this subtitle; and 
(I) include, where appropriate, incentive agreements 
with the participating administrative entity to reward supe-
rior performance in meeting the purposes of this Act. 
(b) SELECTION OF PARTICIPATING ADMINISTRATIVE ENTITY.— 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1391 
(1) SELECTION CRITERIA.—The Secretary shall select a 
participating administrative entity based on whether, in the 
determination of the Secretary, the participating administrative 
entity— 
(A) has demonstrated experience in working directly 
with residents of low-income housing projects and with 
tenants and other community-based organizations; 
(B) has demonstrated experience with and capacity 
for multifamily restructuring and multifamily financing 
(which 
may 
include 
risk-sharing 
arrangements 
£ind 
restructuring eligible multifamily housing properties under 
the fiscal year 1997 Federal Housing Administration multi-
family housing demonstration program); 
(C) has a history of stable, financially sound, and 
responsible administrative performance (which may include 
the management of affordable low-income rental housing); 
(D) has demonstrated financial strength in terms of 
asset quality, capital adequacy, and liquidity; 
(E) has demonstrated that it will carry out the specific 
trsmsactions and other responsibilities under this subtitle 
in a timely, efficient, and cost-effective manner; and 
(F) meets other criteria, as determined by the Sec-
retary. 
(2) SELECTION.—If more than 1 interested entity meets 
the qualifications and selection criteria for a participating 
administrative entity, the Secretary may select the entity that 
demonstrates, as determined by the Secretary, that it will— 
(A) provide the most timely, efficient, and cost-effec-
tive— 
(i) restructuring of the mortgages covered by the 
portfolio restructuring agreement; and 
(ii) administration of the section 8 project-based 
assistance contract, if applicable; and 
(B) protect the public interest (including the long-term 
provision of decent low-income affordable rental housing 
and protection of residents, communities, and the American 
taxpayer). 
(3) PARTNERSHIPS.—For the purposes of any participating 
administrative entity applying imder this subsection, participat-
ing administrative entities are encouraged to develop partner-
ships with each other and with nonprofit organizations, if such 
partnerships will further 
the participating 
administrative 
entity's ability to meet the purposes of this Act. 
(4) ALTERNATIVE ADMINISTRATORS.—With respect to 
any 
eligible multifamily housing project for which a participating 
administrative entity is unavailable, or should not be selected 
to carry out the requirements of this subtitle with respect 
to that multifamily housing project for reasons relating to the 
selection criteria under paragraph (1), the Secretary shall— 
(A) carry out the requirements of this subtitle with 
respect to that eligible multifamily housing project; or 
(B) contract with other qualified entities that meet 
the requirements of paragraph (1) to provide the authority 
to carry out all or a portion of the requirements of this 
subtitle with respect to that eligible multifamily housing 
project. 
I l l STAT. 1392 
PUBLIC LAW 105-65—OCT. 27, 1997 
(5) 
PRIORITY FOR PUBLIC 
AGENCIES AS PARTICIPATING 
ADMINISTRATIVE ENTITIES.—The Secretary shall provide a 
reasonable period during which the Secretary will consider 
proposals only from State housing finance agencies or local 
housing agencies, and the Secretary shall select such an agency 
without considering other applicants if the Secretary deter-
mines that the agency is qualified. The period shall be of 
sufficient duration for the Secretary to determine whether any 
State housing finance agencies or local housing agencies are 
Notification. 
interested and qualified. Not later than the end of the period, 
the Secretary shall notify the State housing finance agency 
or the local housing agency regarding the status of the proposal 
and, if the proposal is rejected, the reasons for the rejection 
and an opportunity for the applicant to respond. 
(6) STATE AND LOCAL PORTFOLIO REQUIREMENTS.— 
(A) IN GENERAL.^If the housing finance agency of a 
State is selected as the participating administrative entity, 
that agency shall be responsible for such eligible multifam-
ily housing projects in that State as may be agreed upon 
by the participating administrative entity and the Sec-
retary. If a local housing agency is selected as the 
participating administrative entity, that agency shall be 
responsible for such eligible multifamily housing projects 
in the jurisdiction of the agency as may be agreed upon 
by the participating administrative entity and the Sec-
retary. 
(B) NONDELEGATION.—Except with the prior approval 
of the Secretary, a participating administrative entity may 
not delegate or trsinsfer responsibilities and functions under 
this subtitle to 1 or more entities. 
(7) PRIVATE ENTITY REQUIREMENTS.— 
(A) IN GENERAL.—If a for-profit entity is selected as 
the participating administrative entity, that entity shall 
be required to enter into a partnership with a public pur-
pose entity (including the Department). 
(B) PROHIBITION.—No private entity shall 
share, 
participate in, or otherwise benefit from any equity created, 
received, or restructured as a result of the portfolio 
restructuring agreement. 
42USC1437f 
SEC. 514. MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE 
note. 
SUFFICIENCY PLAN. 
(a) IN GENERAL.— 
(1) DEVELOPMENT OF PROCEDURES AND REQUIREMENTS.— 
The Secretary shall develop procedures and requirements for 
the submission of a mortgage restructuring and rental assist-
ance sufficiency plan for each eligible multifamily housing 
project with an expiring contract. 
(2) TERMS AND CONDITIONS.—Each mortgage restructuring 
and rental assistance sufficiency plan submitted under this 
subsection shall be developed by the participating administra-
tive entity, in cooperation with an owner of an eligible multi-
family housing project and any servicer for the mortgage that 
is a qualified mortgagee, under such terms and conditions 
as the Secretary shall require. 
(3) CONSOLIDATION.—Mortgage restructuring and rental 
assistance sufficiency plans submitted under this subsection 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1393 
may be consolidated as part of an overall strategy for more 
than 1 property. 
(b) NOTICE REQUIREMENTS.—The Secretary shall establish 
notice procedures and hearing requirements for tenants and owners 
concerning the dates for the expiration of project-based assistance 
contracts for any eligible multifamily housing project. 
(c) EXTENSION OF CONTRACT TERM.—Subject to agreement by 
a project owner, the Secretary may extend the term of any expiring 
contract or provide a section 8 contract with rent levels set in 
accordance with subsection (g) for a period sufficient to facilitate 
the implementation of a mortgage restructuring and rental assist-
ance sufficiency plan, as determined by the Secretary. 
(d) TENANT RENT PROTECTION.—If the owner of a project with 
Notification. 
an expiring Federal rental assistance contract does not agree to 
extend the contract, not less than 12 months prior to terminating 
the contract, the project owner shall provide written notice to the 
Secretary and the tenants and the Secretary shall make tenant-
based assistance available to tenants residing in units assisted 
under the expiring contract at the time of expiration. 
(e) 
MORTGAGE 
RESTRUCTURING 
AND RENTAL 
ASSISTANCE 
SUFFICIENCY PLAN.—Each mortgage restructuring and rental assist-
ance sufficiency plan shall— 
(1) except as otherwise provided, restructure the project-
based assistance rents for the eligible multifamily housing 
project in a manner consistent with subsection (g), or provide 
for tenant-based assistance in accordance with section 515; 
(2) allow for rent adjustments by applying an operating 
cost adjustment factor established under guidelines established 
by the Secretary; 
(3) require the owner or purchaser of an eligible multifamily 
housing project to evaluate the rehabilitation needs of the 
project, in accordance with regulations of the Secretary, and 
notify the participating administrative entity of the rehabilita-
tion needs; 
(4) require the owner or purchaser of the project to provide 
or contract for competent management of the project; 
(5) require the owner or purchaser of the project to take 
such actions as may be necessary to rehabilitate, maintain 
adequate reserves, and to maintain the project in decent and 
safe condition, based on housing quality standards established 
by— 
(A) the Secretary; or 
(B) local housing codes or codes adopted by public 
housing agencies that— 
(i) meet or exceed housing quality standards estab-
lished by the Secretary; and 
(ii) do not severely restrict housing choice; 
(6) require the owner or purchaser of the project to 
maintain affbrdability and use restrictions in accordance with 
regulations promulgated by the Secretary, for a term of not 
less than 30 years which restrictions shall be— 
(A) contained in a legally enforceable 
document 
recorded in the appropriate records; and 
(B) consistent with the long-term physical and financial 
viability and character of the project as affordable housing; 
(7) include a certification by the participating administra-
tive entity that the restructuring meets subsidy layering 
I l l STAT. 1394 
PUBLIC LAW 105-65—OCT. 27, 1997 
requirements established by the Secretary by regulation for 
purposes of this subtitle; 
(8) require the owner or purchaser of the project to meet 
such other requirements as the Secretary determines to be 
appropriate; and 
(9) prohibit the owner from refusing to lease a reasonable 
number of units to holders of certificates and vouchers under 
section 8 of the United States Housing Act of 1937 because 
of the status of the prospective tenants as certificate and 
voucher holders. 
(f) 
TENANT 
AND 
OTHER 
PARTICIPATION 
AND 
CAPACITY 
BUILDING.— 
(1) PROCEDURES .— 
(A) IN GENERAL.—The Secretary shall establish proce-
dures to provide an opportunity for teneints of the project, 
residents of the neighborhood, the local government, and 
other affected parties to participate effectively and on a 
timely basis in the restructuring process established by 
this subtitle. 
(B) COVERAGE.—These procedures shall take into 
' 
account the need to provide tenants of the project, residents 
of the neighborhood, the local government, and other 
affected parties timely notice of proposed restructuring 
actions and appropriate access to relevant information 
about restructuring activities. To the extent practicable 
and consistent with the need to accomplish 
project 
restructuring in an efficient manner, the procedures shall 
give all such parties an opportunity to provide comments 
to the participating administrative entity in writing, in 
meetings, or in another appropriate manner (which com-
ments shall be taken into consideration by the participating 
administrative entity). 
(2) REQUIRED CONSULTATION.—The procedures developed 
pursuant to paragraph (1) shall require consultation with ten-
ants of the project, residents of the neighborhood, the local 
government, and other affected parties, in connection with at 
least the following: 
(A) the mortgage restructuring and rental assistance 
sufficiency plan; 
(B) any proposed transfer of the project; and 
(C) the rental assistance assessment plan pursuant 
to section 515(c). 
(3) FUNDING.— 
(A) IN GENERAL.—The Secretary may provide not more 
than $10,000,000 annually in funding from which the Sec-
retary may make obligations to tenant groups, nonprofit 
organizations, and public entities for building the capacity 
of tenant organizations, for technical assistance in further-
ing £iny of the purposes of this subtitle (including transfer 
of developments to new owners) and for tenant services, 
from those amounts made available under appropriations 
Acts for implementing this subtitle or previously made 
available for technical assistance in connection with the 
preservation of affordable rental housing for low-income 
persons. 
(B) 
MANNER OF PROVIDING.—Notwithstanding 
any 
other provision of law restricting the use of preservation 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1395 
technical assistance funds, the Secretary may provide any 
funds made available under subparagraph (A) through 
existing technical assistance programs pursuant to any 
other Federal law, including the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 
and the Multifamily Property Disposition Reform Act of 
1994, 
or through any other means that the Secretary 
considers consistent with the purposes of this subtitle, with-
out 
regard 
to 
any 
set-aside 
requirement 
otherwise 
applicable to those funds. 
(C) PROHIBITION.—None of the funds made available 
under subparagraph (A) may be used directly or indirectly 
to pay for any personal service, advertisement, telegram, 
telephone, letter, printed or written matter, or other device, 
intended or designed to influence in any manner a Member 
of Congress, to favor or oppose, by vote or otherwise, any 
legislation or appropriation by Congress, whether before 
or after the introduction of any bill or resolution proposing 
such legislation or appropriation. 
(g) RENT LEVELS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), each 
mortgage restructuring and rental assistance sufficiency plan 
pursuant to the terms, conditions, and requirements of this 
subtitle shall establish for units assisted with project-based 
assistance in eligible multifamily housing projects adjusted rent 
levels that— 
(A) are equivalent to rents derived from comparable 
properties, if— 
(i) the participating administrative entity makes 
the rent determination within a reasonable period of 
time; and 
(ii) the market rent determination is based on 
not less than 2 comparable properties; or 
(B) if those rents cannot be determined, are equal 
to 90 percent of the fair market rents for the relevant 
market area. 
(2) EXCEPTIONS.— 
(A) IN GENERAL.—^A contract under this section may 
include rent levels that exceed the rent level described 
in paragraph (1) at rent levels that do not exceed 120 
percent of the fair market rent for the market area (except 
that the Secretarj-^ may waive this limit for not more than 
five percent of all units subject to restructured mortgages 
in any fiscal year, based on a finding of special need), 
if the participating administrative entity— 
(i) determines that the housing needs of the ten-
ants 
and 
the 
community 
cannot 
be 
adequately 
addressed through implementation of the rent limita-
tion required to be established through a mortgage 
restructuring and rental assistance sufficiency plan 
under paragraph (1); and 
(ii) follows the procedures under paragraph (3). 
(B) EXCEPTION RENTS.—In any fiscal year, a participat-
ing administrative entity may approve exception rents on 
not more than 20 percent of all units covered by the port-
folio restructuring agreement with expiring contracts in 
I l l STAT. 1396 
PUBLIC LAW 105-65—OCT. 27, 1997 
that fiscal year, except that the Secretary may waive this 
ceiUng upon a finding of special need. 
(3) RENT LEVELS FOR EXCEPTION PROJECTS.—For purposes 
of this section, a project eligible for an exception rent shall 
receive a rent calculated on the actual and projected costs 
of operating the project, at a level that provides income suffi-
cient to support a budget-based rent that consists of— 
(A) the debt service of the project; 
(B) the operating expenses of the project, as determined 
by the participating administrative entity, including— 
(i) contributions to adequate reserves; 
(ii) the costs of maintenance 
and 
necessary 
rehabilitation; and 
(iii) other eligible costs permitted under section 
8 of the United States Housing Act of 1937; 
(C) an adequate allowance for potential operating 
losses due to vacancies and failure to collect rents, as 
determined by the participating administrative entity; 
(D) an allowgmce for a reasonable rate of return to 
the owner or purchaser of the project, as determined by 
the participating administrative entity, which may be 
established to provide incentives for owners or purchasers 
to meet benchmarks of quality for management and hous-
ing quality; and 
(E) other expenses determined by the participating 
administrative entity to be necessary for the operation 
of the project. 
(h) 
EXEMPTIONS 
FROM 
RESTRUCTURING.—The 
following 
categories of projects shall not be covered by a mortgage restructur-
ing and rental assistance sufficiency plan if— 
(1) the primary financing or mortgage insurance for the 
multifamily housing project that is covered by that expiring 
contract was provided by a unit of State government or a 
unit of general local government (or an agency or instrumental-
ity of a unit of a State government or unit of general local 
government); 
(2) the project is a project financed under section 202 
of the Housing Act of 1959 or section 515 of the Housing 
Act of 1949; or 
(3) the project has an expiring contract under section 8 
of the United States Housing Act of 1937 entered into pursuant 
to section 441 of the Stewart B. McKinney Homeless Assistance 
Act. 
Contracts. 
SEC. 515. SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY 
42 use 1437f 
COMMITMENT BY OWNER OF PROJECT. 
(a) SECTION 8 RENEWALS OF RESTRUCTURED PROJECTS.— 
(1) PROJECT-BASED ASSISTANCE.—Subject to the availability 
of amounts provided in advance in appropriations Acts, and 
to the control of the Secretary of applicable accounts in the 
Treasury of the United States, with respect to an expiring 
section 8 contract on an eligible multifamily housing project 
to be renewed with project-based assistance (based on a deter-
mination under subsection (c)), the Secretary shall enter into 
contracts with participating administrative entities pursuant 
to which the participating administrative entity shall offer to 
renew or extend the contract, or the Secretary shall offer to 
note. 
''^*i^ti-
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1397 
renew such contract, and the owner of the project shall accept 
the offer, if the initial renewal is in accordance with the terms 
and conditions specified in the mortgage restructuring and 
rental assistance sufficiency plan and the rental assistance 
assessment plan. 
(2) TENANT-BASED ASSISTANCE.—Subject to the availability 
of amounts provided in advance in appropriations Acts and 
to the control of the Secretary of applicable accounts in the 
Treasury of the United States, with respect to an expiring 
section 8 contract on an eligible multifamily housing project 
to be renewed with tenant-based assistance (based on a deter-
mination under subsection (c)), the Secretary shall enter into 
contracts with participating administrative entities pursuant 
to which the participating administrative entity shall provide 
for the renewal of section 8 assistance on an eligible multifamily 
housing project with tenant-based assistance, or the Secretary 
shall provide for such renewal, in accordance with the terms 
and conditions specified in the mortgage restructuring and 
rental assistance sufficiency plan and the rental assistance 
assessment plan. 
(b) REQUIRED COMMITMENT.—^After the initial renewal of a 
section 8 contract pursuant to this section, the owner shall accept 
each offer made pursuant to subsection (a) to renew the contract, 
for the term of the affordability and use restrictions required by 
section 514(e)(6), if the offer to renew is on terms and conditions 
specified in the mortgage restructuring and rental assistance suffi-
ciency plan. 
(c) DETERMINATION OF WHETHER TO RENEW WITH PROJECT-
BASED O
R TENANT-BASED ASSISTANCE.— 
(1) MANDATORY RENEWAL OF PROJECT-BASED ASSISTANCE.— 
Section 8 assistance shall be renewed with project-based 
assistance, if— 
(A) the project is located in an area in which the 
participating administrative entity determines, based on 
housing market indicators, such as low vacancy rates or 
high absorption rates, that there is not adequate available 
and affordable housing or that the tenants of the project 
would not be able to locate suitable imits or use the tenant-
based assistance successfully; 
(B) a predominant number of the units in the project 
are occupied by elderly families, disabled families, or 
elderly and disabled families; 
(C) the project is held by a nonprofit cooperative owner-
ship housing corporation or nonprofit cooperative housing 
trust. 
(2) RENTAL ASSISTANCE ASSESSMENT PLAN.— 
(A) IN GENERAL.—^With respect to any project that is 
not described in paragraph (1), the participating adminis-
trative entity shall, after consultation with the owner of 
the project, develop a rental assistance assessment plan 
to determine whether to renew assistance for the project 
with tenant-based assistance or project-based assistance. 
(B) RENTAL ASSISTANCE ASSESSMENT PLAN REQUIRE-
MENTS.—Each rental assistance assessment plan developed 
under this paragraph shall include an assessment of the 
impact of converting to tenant-based assistance and the 
impact of extending project-based assistance on— 
I l l STAT. 1398 
PUBLIC LAW 105-65—OCT. 27, 1997 
(i) the ability of the tenants to find adequate, 
available, decent, comparable, and affordable housing 
in the local market; 
(ii) the types of tenants residing in the project 
(such as elderly families, disabled families, large fami-
lies, and cooperative homeowners); 
(iii) the local housing needs identified in the com-
prehensive housing affordability strategy, and local 
market vacancy trends; 
(iv) the cost of providing assistance, comparing 
the applicable payment standard to the project's 
adjusted rent levels determined under section 514(g); 
(v) the long'-term financial stability of the project; 
(vi) the ability of residents to make reasonable 
choices about their individual living situations; 
(vii) the quality of the neighborhood in which the 
tenants would reside; and 
(viii) the project's ability to compete in the market-
place. 
(C) 
REPORTS 
TO 
DIRECTOR.—Each 
participating 
administrative entity shall report regularly to the Director 
as defined in subtitle D, as the Director shall require, 
identifying— 
(i) each eligible multifamily housing project for 
which the entity has developed a rental assistance 
assessment plan under this paragraph that determined 
that the tenants of the project generally supported 
renewal of assistance with ten£int-based assistance, but 
under which assistance for the project was renewed 
with project-based assistance; and 
(ii) each project for which the entity has developed 
such a plan under which the assistance is renewed 
using tenant-based assistance. 
(3) ELIGIBILITY FOR TENANT-BASED ASSISTANCE.—Subject to 
paragraph (4), with respect to any project that is not described 
in paragraph (1), if a participating administrative entity 
approves the use of tenant-based assistance based on a rental 
assistance assessment plan developed under paragraph (2), ten-
ant-based assistance shall be provided to each assisted family 
(other than a family already receiving tenant-based assistance) 
residing in the project at the time the assistance described 
in section 512(2)(B) terminates. 
(4) RENTS FOR FAMILIES RECEIVING TENANT-BASED ASSIST-
ANCE.— 
(A) IN GENERAL.—Notwithstanding subsection (c)(1) or 
(oXl) of section 8 of the United States Housing Act of 
1937, in the case of any family described in paragraph 
(3) that resides in a project described in section 512(2)(B) 
in which the reasonable rent (which rent shall include 
any amount allowed for utilities and shall hot exceed com-
psirable market rents for the relevant housing market area) 
exceeds the fair market rent limitation or the payment 
standard, as applicable, the amount of assistemce for the 
family shall be determined in accordance with subpara-
graph (B). 
(B) MAXIMUM MONTHLY RENT; PAYMENT STANDARD.— 
With respect to the certificate program under section 8(b) 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1399 
of the United States Housing Act of 1937, the maximum 
monthly rent under the contract (plus any amount allowed 
for utilities) shall be such reasonable rent for the unit. 
With respect to the voucher program under section 8(o) 
of the United States Housing Act of 1937, the payment 
standard shall be deemed to be such reasonable rent for 
the unit. 
(5) INAPPLICABILITY OF CERTAIN PROVISION.—If a participat-
ing administrative entity approves renewal with project-based 
assistance under this subsection, section 8(d)(2) of the United 
States Housing Act of 1937 shall not apply. 
SEC. 516. PROHIBITION ON RESTRUCTURING. 
42 USC 1437f 
(a) PROHIBITION ON RESTRUCTURING.—The Secretary may elect 
not to consider any mortgage restructuring and rental assistance 
sufficiency plan or request for contract renewal if the Secretary 
or the participating administrative entity determines that— 
(1)(A) the owner or purchaser of the project has engaged 
in material adverse financial or managerial actions or omissions 
with regard to such project; or 
(B) the owner or purchaser of the project has engaged 
in material adverse financial or managerial actions or omissions 
with regard to other projects of such owner or purchaser that 
are federally assisted or financed with a loan from, or mortgage 
insured or guaranteed by, an agency of the Federal Govern-
ment; 
(2) material adverse financial or managerial actions or 
omissions include— 
(A) materially violating any Federal, State, or local 
law or regulation with regard to this project or any other 
federally assisted project, after receipt of notice and an 
opportunity to cure; 
(B) materially breaching a contract for assistance 
under section 8 of the United States Housing Act of 1937, 
after receipt of notice and an opportunity to cure; 
(C) materially violating any applicable regulatory or 
other agreement with the Secretary or a participating 
administrative entity, after receipt of notice and an oppor-
tunity to cure; 
(D) repeatedly and materially violating £iny Federal, 
State, or local law or regulation with regard to the project 
or any other federally assisted project; 
(E) repeatedly and materially breaching a contract for 
assistance under section 8 of the United States Housing 
Act of 1937; 
(F) repeatedly and materially violating any applicable 
regulatory or other agreement with the Secretary or a 
participating administrative entity; 
(G) repeatedly failing to make mortgage payments at 
times when project income was sufficient to maintain and 
operate the property; 
(H) materially failing to maintain the property accord-
ing to housing quality standards after receipt of notice 
and a reasonable opportunity to cure; or 
(I) committing any actions or omissions that would 
warrant suspension or debarment by the Secretary; 
I l l STAT. 1400 
PUBLIC LAW 105-65—OCT. 27, 1997 
(3) the owner or purchaser of the property materially failed 
to follow the procedures and requirements of this subtitle, 
after receipt of notice and an opportunity to cure; or 
(4) the poor condition of the project cannot be remedied 
in a cost effective manner, as determined by the participating 
administrative entity. 
The term "owner" as used in this subsection, in addition to it 
having the same meaning as in section 8(f) of the United States 
Housing Act of 1937, also means an affiliate of the owner. The 
term "purchaser" as used in this subsection means any private 
person or entity, including a cooperative, an agency of the Federal 
Government, or a public housing agency, that, upon purchase of 
the project, would have the legal right to lease or sublease dwelling 
units in the project, and also means an affiliate of the purchaser. 
The terms "affiliate of the owner" and "affiliate of the purchaser" 
means any person or entity (including, but not limited to, a general 
partner or managing member, or an officer of either) that controls 
an owner or purchaser, is controlled by an owner or purchaser, 
or is under common control with the owner or purchaser. The 
term "control" means the direct or indirect power (under contract, 
equity ownership, the right to vote or determine a vote, or other-
wise) to direct the financial, legal, beneficial or other interests 
of the owner or purchaser. 
(b) OPPORTUNITY TO DISPUTE FINDINGS.— 
(1) IN GENERAL.—During the 30-day period beginning on 
the date on which the owner or purchaser of an eligible 
multifamily housing project receives notice of a rejection under 
subsection (a) or of a mortgage restructuring and rental assist-
ance sufficiency plan under section 514, the Secretary or partici-
pating administrative entity shall provide that owner or pur-
chaser with an opportunity to dispute the basis for the rejection 
and an opportunity to cure. 
(2) AFFIRMATION, MODIFICATION, OR REVERSAL.— 
(A) IN GENERAL.—After providing an opportunity to 
dispute under paragraph (1), the Secretary or the partici-
pating administrative entity may affirm, modify, or reverse 
any rejection under subsection (a) or rejection of a mortgage 
restructuring and rental assistance sufficiency plan under 
section 514. 
(B) 
REASONS FOR DECISION.—The Secretary or 
the 
participating administrative entity, as applicable, shall 
identify the reasons for any final decision under this para-
graph. 
(C) REVIEW PROCESS.—The Secretary shall establish 
an administrative review process to appeal any final deci-
sion under this paragraph. 
(c) FINAL DETERMINATION.—^Any final determination under this 
section shall not be subject to judicial review. 
(d) DISPLACED TENANTS.—Subject to the availability of amounts 
provided in advance in appropriations Acts, for any low-income 
tenant that is residing in a project or receiving assistance under 
section 8 of the United States Housing Act of 1937 at the time 
of rejection under this section, that tenant shall be provided with 
tenant-based assistance and reasonable moving expenses, as deter-
mined by the Secretary. 
(e) TRANSFER OF PROPERTY.—For properties disqualified fi*om 
the consideration of a mortgage restructuring and rental assistance 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1401 
sufficiency plan under this section in accordance with paragraph 
(1) or (2) of subsection (a) because of actions by an owner or 
purchaser, the Secretary shall establish procedures to facilitate 
the voluntary sale or transfer of a property as part of a mortgage 
restructuring and rental assistance sufficiency 
plan, with a 
preference for tenant organizations and tenant-endorsed commu-
nity-based nonprofit and public agency purchasers meeting such 
reasonable qualifications as may be established by the Secretary. 
SEC. 517. RESTRUCTURING TOOLS. 
42 USC 1437f 
(a) MORTGAGE RESTRUCTURING.— 
(1) In this subtitle, an approved mortgage restructuring 
and rental assistance sufficiency plan shall include restructur-
ing mortgages in accordance with this subsection to provide— 
(A) a restructured or new first mortgage that is 
sustainable at rents at levels that are established in section 
514(g); and 
(B) a second mortgage that is in an amount equal 
to no more than the difference between the restructured 
or new first mortgage and the indebtedness under the 
existing insured mortgage immediately before it is restruc-
tured or refinanced, provided that the amount of the second 
mortgage shall be in an amoiuit that the Secretary or 
participating administrative entity determines can reason-
ably be expected to be repaid. 
(2) The second mortgage shall bear interest at a rate not 
to exceed the applicable Federal rate as defined in section 
1274(d) of the Internal Revenue Code of 1986. The term of 
the second mortgage shall be equal to the term of the restruc-
tured or new first mortgage. 
(3) Pajonents on the second mortgage shall be deferred 
when the first mortgage remains outstanding, except to the 
extent there is excess project income remaining after payment 
of all reasonable and necessary operating expenses (including 
deposits in a reserve for replacement), debt service on the 
first mortgage, and any other expenditures approved by the 
Secretary. At least 75 percent of any excess project income 
shall be applied to payments on the second mortgage, and 
the Secretary or the participating administrative entity may 
permit up to 25 percent to be paid to the project owner if 
the Secretary or participating administrative entity determines 
that the project owner meets benchmarks for management and 
housing quality. 
(4) The full amount of the second mortgage shall be imme-
diately due and payable if— 
(A) the first mortgage is terminated or paid in fiiU, 
except as otherwise provided by the holder of the second 
mortgage; 
(B) the project is purchased and the second mortgage 
is assumed by any subsequent purchaser in violation of 
guidelines established by the Secretary; or 
(C) the Secretary provides notice to the project owner 
that such owner has failed to materially comply with any 
requirements of this section or the United States Housing 
Act of 1937 as those requirements apply to the project, 
with a reasonable opportunity for such owner to cure such 
failure. 
39-194 O - 97 - 11 : QL 3 Part 2 
I l l STAT. 1402 
PUBLIC LAW 105-65—OCT. 27, 1997 
(5) The Secretary may modify the terms or forgive all 
or part of the second mortgage if the Secretary holds the 
second mortgage and if the project is acquired by a tenant 
organization or tenant-endorsed community-based nonprofit or 
public agency, pursuant to guidelines established by the 
Secretary. 
(b) RESTRUCTURING TOOLS.—In addition to the requirements 
of subsection (a) and to the extent these actions are consistent 
with this section and with the control of the Secretary of applicable 
accounts in the Treasury of the United States, an approved mort-
gage restructuring and rental assistance sufficiency plan under 
this subtitle may include one or more of the following actions: 
(1) FULL OR PARTIAL PAYMENT OF CLAIM.—making a full 
payment of claim or partial payment of claim under section 
541(b) of the National Housing Act, as amended by section 
523(b) of this Act. Any pa3anent under this paragraph shall 
not require the approval of a mortgagee; 
(2) REFINANCING OF DEBT.—refinancing of all or part of 
the debt on a project. If the refinancing involves a mortgage 
that will continue to be insured under the National Housing 
Act, the refinancing shall be documented through amendment 
of the existing insurance contract and not through a new insur-
ance contract; 
(3) MORTGAGE INSURANCE.—providing FHA multifamily 
mortgage insurance, reinsurance or other credit enhancement 
alternatives, including multifamily risk-sharing mortgage pro-
grams, as provided under section 542 of the Housing and 
Community Development Act of 1992. Any limitations on the 
number of units available for mortgage insurance under section 
542 shall not apply to eligible multifamily housing projects. 
Any credit subsidy costs of providing mortgage insurance shall 
be paid fi-om the Liquidating Accounts of the General Insurance 
Fund or the Special Risk Insurance Fund and shall not be 
subject to any limitation on appropriations; 
(4) CREDIT ENHANCEMENT.—providing any additional State 
or local mortgage credit enhancements and 
risk-sharing 
arrangements that may be established with State or local hous-
ing finance agencies, the Federal Housing Finance Board, the 
Federal National Mortgage Association, and the Federal Home 
Loan Mortgage Corporation, to a modified or refinanced first 
mortgage; 
(5) COMPENSATION OF THIRD PARTIES.—consistent with the 
portfolio restructuring agreement, entering into agreements, 
incurring costs, or making payments, including incentive agree-
ments designed to reward superior performance in meeting 
the purposes of this Act, as may be reasonably necessary, 
to compensate the participation of participating administrative 
entities and other parties in undertaking actions authorized 
by this subtitle. Upon request to the Secretary, participating 
administrative entities that are qualified under the United 
States Housing Act of 1937 to serve as contract administrators 
shall be the contract administrators under section 8 of the 
United States Housing Act of 1937 for purposes of any contracts 
entered into as part of an approved mortgage restructuring 
and rental assistance sufficiency plan. Subject to the availabil-
ity of amounts provided in advance in appropriations Acts 
for administrative fees under section 8 of the United States 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1403 
Housing Act of 1937, such amounts may be used to compensate 
participating administrative entities for compliance monitoring 
costs incurred under section 519; 
(6) USE OF PROJECT ACCOUNTS.—appl5dng any residual 
receipts, replacement reserves, and any other project accoimts 
not required for project operations, to maintain the long-term 
affordability and physical condition of the property or of other 
eligible 
multifamily 
housing 
projects. 
The 
participating 
administrative entity may expedite the acquisition of residual 
receipts, replacement reserves, or other such accounts, by enter-
ing into agreements with owners of housing covered by an 
expiring contract to provide an owner with a share of the 
receipts, not to exceed 10 percent, in accordance with guidelines 
established by the Secretary; and 
(7) REHABILITATION NEEDS.— 
(A) IN GENERAL.—Rehabilitation may be paid from the 
residual receipts, replacement reserves, or any other project 
accounts not required for project operations, or, as provided 
in appropriations Acts and subject to the control of the 
Secretary of applicable accounts in the Treasury of the 
United States, from budget authority provided for increases 
in the budget authority for assistance contracts under sec-
tion 8 of the United States Housing Act of 1937, the 
rehabilitation grant program established under section 236 
of the National Housing Act, as amended by section 531 
of subtitle B of this Act, or through the debt restructuring 
transaction. Rehabilitation under this paragraph shall only 
be for the purpose of restoring the project to a non-luxury 
standard adequate for the rental market intended at the 
original approval of the project-based assistance. 
(B) CONTRIBUTION.—Each owner or purchaser of a 
project to be rehabilitated under an approved mortgage 
restructuring and rental assistance sufficiency plan shall 
contribute, from non-project resources, not less than 25 
percent of the amoimt of rehabilitation assistance received, 
except that the participating administrative entity may 
provide an exception from the requirement of this subpara-
graph for housing cooperatives. 
(c) ROLE OF F N M A AND FHLMC—Section 1335 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4565) is amended— 
(1) in paragraph (3), by striking "and" at the end; 
(2) paragraph (4), by striking the period at the end and 
inserting "; and"; 
(3) by striking "To meet" and inserting the following: 
"(a) IN GENERAL.—To meet"; and 
(4) by adding at the end the following: 
"(5) assist in maintaining the affordability of assisted units 
in eligible multifamily housing projects with expiring contracts, 
as defined under the Multifamily Assisted Housing Reform 
and Affordability Act of 1997. 
"(b) AFFORDABLE HOUSING GOALS.—Actions taken under sub-
section (a)(5) shall constitute part of the contribution of each entity 
in meeting its affordable housing goals under sections 1332, 1333, 
and 1334 for any fiscal year, as determined by the Secretary.". 
I l l STAT. 1404 
PUBLIC LAW 105-65—OCT. 27, 1997 
(d) PROHIBITION ON EQUITY SHARING BY THE SECRETARY.— 
The Secretary is prohibited from participating in any equity agree-
ment or profit-sharing agreement in conjunction with any eligible 
multifamily housing project. 
(e) CONFLICT OF INTEREST GUIDELINES.—The Secretary may 
establish guidelines to prevent conflicts of interest by a participating 
administrative entity that provides, directly or through risk-sharing 
arrangements, any form of credit enhancement or financing pursu-
ant to subsections (b)(3) or (b)(4) or to prevent conflicts of interest 
by any other person or entity under this subtitle. 
42 use 1437f 
SEC. 518. MANAGEMENT STANDARDS. 
Each 
participating 
administrative 
entity 
shall 
establish 
management standards, including requirements governing conflicts 
of interest between owners, managers, contractors with an identity 
of interest, pursuant to guidelines established by the Secretary 
and consistent with industry standards. 
42 use 1437f 
SEC. 519. MONITORING OF COMPLIANCE. 
^°^' 
(a) COMPLIANCE AGREEMENTS.—(1) Pursuant to regulations 
issued by the Secretary under section 522(a), each participating 
administrative entity, through binding contractual agreements with 
owners and otherwise, shall ensure long-term compliance with the 
provisions of this subtitle. Each agreement shall, at a minimum, 
provide for— 
(A) enforcement of the provisions of this subtitle; and 
(B) remedies for the breach of those provisions. 
(2) If the participating administrative entity is not qualified 
under the United States Housing Act of 1937 to be a section 
8 contract administrator or fails to perform its duties under the 
portfolio restructuring agreement, the Secretary shall have the 
right to enforce the agreement. 
(b) PERIODIC MONITORING.— 
(1) IN GENERAL.—Not less than annually, each participating 
administrative entity that is qualified to be the section 8 con-
tract administrator shall review the status of all multifamily 
housing projects for which a mortgage restructuring and rental 
assistance sufficiency plan has been implemented. 
(2) INSPECTIONS.—Each review under this subsection shall 
include onsite inspection to determine compliance with housing 
codes and other requirements as provided in this subtitle and 
the portfolio restructuring agreements. 
(3) ADMINISTRATION.—If the participating administrative 
entity is not qualified under the United States Housing Act 
of 1937 to be a section 8 contract administrator, either the 
Secretary or a qualified State or local housing agency shall 
be responsible for the review required by this subsection. 
(c) AUDIT BY THE SECRETARY.—The Comptroller General of 
the United States, the Secretary, and the Inspector General of 
the Department of Housing and Urban Development may conduct 
an audit at any time of any multifamily housing project for which 
a mortgage restructuring and rental assistance sufficiency plan 
has been implemented. 
42 use 1437f 
SEC. 520. REPORTS TO CONGRESS. 
(a) ANNUAL REVIEW.—In order to ensure compliance with this 
subtitle, the Secretary shall conduct an annual review and report 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1405 
to the Congress on actions taken under this subtitle and the status 
of ehgible multifamily housing projects. 
(b) SEMIANNUAL REVIEW.—Not less than semiannually during 
the 2-year period beginning on the date of the enactment of this 
Act and not less than annually thereafter, the Secretary shall 
submit reports to the Committee on Banking and Financial Services 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate stating, for such periods, 
the total number of projects identified by participating administra-
tive entities under each of clauses (i) and (ii) of section 515(c)(2)(C). 
SEC. 521. GAO AUDIT AND REVIEW. 
42 USC 1437f 
(a) INITIAL AUDIT.—Not later than 18 months after the effective 
date of final regulations promulgated under this subtitle, the 
Comptroller General of the United States shall conduct an audit 
to 
evaluate 
eligible 
multifamily 
housing 
projects 
and the 
iniplementation of mortgage restructuring and rental assistance 
sufficiency plans. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 18 months after the audit 
conducted \mder subsection (a), the Comptroller General of 
the United States shall submit to Congress a report on the 
status of eligible multifamily 
housing projects and the 
implementation of mortgage restructuring and rental assistance 
sufficiency plans. 
(2) CONTENTS.—The report submitted under paragraph (1) 
shall include— 
(A) a description of the initial audit conducted under 
subsection (a); and 
(B) recommendations for any legislative action to 
increase the financial savings to the Federal Government 
of the restructuring of eligible multifamily housing projects 
balanced with the continued availability of the maximum 
number of affordable low-income housing units. 
SEC. 522. REGULATIONS. 
42 USC 1437f 
(a) RULEMAKING AND IMPLEMENTATION.— 
^°^' 
(1) INTERIM REGULATIONS.—The Director shall issue such 
interim regulations as may be necessary to implement this 
subtitle and the amendments made by this subtitle with respect 
to eligible multifamily housing projects covered by contracts 
described in section 512(2)(B) that expire in fiscal year 1999 
or thereafter. If, before the expiration of such period, the Direc-
tor has not been appointed, the Secretary shall issue such 
interim regulations. 
(2) FINAL REGULATIONS.—The Director shall issue final 
regulations necessary to implement this subtitle and the 
amendments made by this subtitle with respect to eligible 
multifamily housing projects covered by contracts described 
in section 512(2)(B) that expire in fiscal year 1999 or thereafter 
before the later of: (A) the expiration of the 12-month period 
beginning upon the date of the enactment of this Act; and 
(B) the 3-month period beginning upon the appointment of 
the Director under subtitle D. 
(3) FACTORS FOR CONSIDERATION.—Before the publication 
of the final regulations under paragraph (2), in addition to 
public comments invited in connection with publication of the 
interim rule, the Secretary shall— 
I l l STAT. 1406 
PUBLIC LAW 105-65—OCT. 27, 1997 
Applicability. 
42 use 1437f 
note. 
(A) seek recommendations on the implementation of 
sections 513(b) and 515(c)(1) from organizations repre-
senting— 
(i) State housing 
finance 
agencies and local 
housing agencies; 
(ii) other potential participating 
administering 
entities; 
(iii) tenants; 
(iv) owners and managers of eligible multifamily 
housing projects; 
(v) States and units of general local government; 
£ind 
(vi) qualified mortgagees; and 
(B) convene not less than 3 public forums at which 
the organizations making recommendations under subpara-
graph (A) may express views concerning the proposed 
disposition of the recommendations. 
(b) TRANSITION PROVISION FOR CONTRACTS EXPIRING IN FISCAL 
YEAR 1998.—Notwithstanding any other provision of law, the Sec-
retary shall apply all the terms of section 211 and section 212 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 
(except for section 212(h)(1)(G) and the limitation in section 212(k)) 
contracts for project-based assistance that expire during fiscal year 
1998 (in the same manner that such provisions apply to expiring 
contracts defined in section 212(a)(3) of such Act), except that 
section 517(a) of the Act shall apply to mortgages on projects 
subject to such contracts. 
SEC. 523. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) CALCULATION OF LIMIT ON PROJECT-BASED ASSISTANCE.— 
Section 8(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437f[d)) is amended by adding at the end the following: 
"(5) CALCULATION OF LIMIT.—Any contract entered into 
under section 514 of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 shall be excluded in computing 
the limit on project-based assistance under this subsection.". 
(b) PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY HOUSING 
PROJECTS.—Section 541 of the National Housing Act (12 U.S.C. 
1735f-19) is amended— 
(1) in subsection (a), in the subsection heading, by striking 
"AUTHORITY" and inserting "DEFAULTED MORTGAGES"; 
(2) by redesignating subsection (b) as subsection (c); and 
(3) by inserting after subsection (a) the following: 
"(b) 
EXISTING 
MORTGAGES.—Notwithstanding 
any 
other 
provision of law, the Secretary, in connection with a mortgage 
restructuring under section 514 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997, may make a one time, non-
default partial payment of the claim under the mortgage insurance 
contract, which shall include a determination by the Secretary 
or the participating administrative entity, in accordance with the 
Multifamily Assisted Housing Reform and Affordability Act of 1997, 
of the market value of the project and a restructuring of the mort-
gage, under such terms and conditions as are permitted by section 
517(a) of such Act.". 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1407 
(c) REUSE AND RESCISSION OF CERTAIN RECAPTURED BUDGET 
AUTHORITY.—Section 8(bb) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(bb)) is amended— 
(1) by inserting after "(bb)" the following: 
"TRANSFER, REUSE, AND RESCISSION OF BUDGET AUTHORITY.— 
"(1)"; and 
(2) by inserting the following new paragraph at the end: 
"(2) 
REUSE 
AND RESCISSION OF CERTAIN 
RECAPTURED 
BUDGET AUTHORITY.—Notwithstanding paragraph (1), if a 
project-based assistance contract for an eligible multifamily 
housing project subject to actions authorized under title I is 
terminated or amended as part of restructuring under section 
517 of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997, the Secretary shall recapture the budget 
authority not required for the terminated or amended contract 
and use such amounts as are necessary to provide housing 
assistance for the same number of families covered by such 
contract for the remaining term of such contract, under a 
contract providing for project-based or tenant-based assistance. 
The amount of budget authority saved as a result of the shift 
to project-based or tenant-based assistance shall be rescinded.". 
(d) SECTION 8 CONTRACT RENEWALS.—Section 405(a) of the 
Balanced Budget Downpa5mient Act, I (42 U.S.C. 1437f note) is 
amended by striking "For" and inserting "Notwithstanding part 
24 of title 24 of the Code of Federal Regulations, for". 
(e) RENEWAL UPON REQUEST OF OWNER.—Section 211(b)(3) of 
the Departments of Veterans Affairs and Housing and Urban Devel-
opment, and Independent Agencies Appropriations Act, 1997 (Public 
Law 104-204; 110 Stat. 2896) is amended— 
42 USC I437f 
(1) by striking the paragraph heading and inserting the note. 
following: 
"(3) EXEMPTION OF CERTAIN OTHER PROJECTS.—"; and 
(2) by striking "section 202 projects, section 811 projects 
and section 515 projects" and inserting "section 202 projects, 
section 515 projects, projects with contracts entered into 
pursuant to section 441 of the Stewart B. McKinney Homeless 
Assistance Act, and projects with rents that exceed 100 percent 
of fair market rent for the market area, but that are less 
than rents for comparable projects". 
(f) EXTENSION OF DEMONSTRATION CONTRACT PERIOD.—Section 
212(g) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 
1997 (Public Law 104-204) is amended— 
42 use I437f 
(1) by inserting "(1)" after "(g)"; 
note. 
(2) by inserting before the period at the end the following: 
"or in paragraph (2)"; and 
(3) by adding at the end the following: 
"(2) The Secretary may renew a demonstration contract for 
an additional period of not to exceed 120 days, if— 
"(A) the contract was originally executed before February 
1, 1997, and the Secretary determines, in the sole discretion 
of the Secretary, that the renewal period for the contract needs 
to exceed 1 year, due to delay of publication of the Secretary's 
demonstration program guidelines until January 23, 1997 (not 
to exceed 21 projects); or 
"(B) the contract was originally executed before October 
1, 1997, in connection with a project that has been identified 
I l l STAT. 1408 
PUBLIC LAW 105-65—OCT. 27, 1997 
for restructuring under the joint venture approach described 
in section VILB.2, of the Secretary's demonstration program 
guidehnes, and the Secretary determines, in the sole discretion 
of the Secretary, that the renewal period for the contract needs 
to exceed 1 year, due to delay in implementation of the joint 
venture agreement required by the guidelines (not to exceed 
25 projects).". 
42 use 1437f 
SEC. 524. SECTION 8 CONTRACT RENEWALS. 
(a) SECTION 8 CONTRACT RENEWAL AUTHORITY.— 
(1) IN GENERAL.—Notwithstanding part 24 of title 24 of 
the Code of Federal Regulations and subject to section 516 
of this subtitle, for fiscal year 1999 and henceforth, the Sec-
retary may use amounts available for the renewal of assistance 
under section 8 of the United States Housing Act of 1937, 
upon termination or expiration of a contract for assistance 
under section 8 (other than a contract for tenant-based assist-
ance and notwithstanding section 8(v) of such Act for loan 
management assistance), to provide assistance under section 
8 of such Act at rent levels that do not exceed comparable 
market rents for the market area. The assistance shall be 
provided in accordance with terms and conditions prescribed 
by the Secretary. 
(2) EXCEPTION PROJECTS.—Notwithstanding paragraph (1), 
upon the request of the owner, the Secretary shall renew an 
expiring contract in accordance with terms and conditions pre-
scribed by the Secretary at the lesser of: (i) existing rents, 
adjusted by an operating cost adjustment factor established 
by the Secretary; (ii) a level that provides income sufficient 
to support a budget-based rent (including a budget-based rent 
adjustment if justified by reasonable and expected operating 
expenses); or (iii) in the case of a contract under the moderate 
rehabilitation program, other than a moderate rehabilitation 
contract imder section 441 of the Stewart B. McKinney Home-
less Assistance Act, the base rent adjusted by an operating 
cost adjustment factor established by the Secretary, for the 
following categories of multifamily housing projects— 
(A) projects for which the primary financing or mort-
gage insurance was provided by a unit of State government 
or a unit of general local government (or an agency or 
instrumentality of either) and is not insured under the 
National Housing Act; 
(B) projects for which the primary financing was pro-
vided by a unit of State government or a unit or general 
local government (or an agency or instrumentality of either) 
and the financing involves mortgage insurance under the 
National Housing Act, such that the implementation of 
a mortgage restructuring and rental assistance sufficiency 
plan under this Act is in conflict with applicable law or 
agreements governing such financing; 
(C) projects financed under section 202 of the Housing 
Act of 1959 or section 515 of the Housing Act of 1949; 
(D) projects that have an expiring contract under sec-
tion 8 of the United States Housing Act of 1937 pursuant 
to section 441 of the Stewart B. McKinney Homeless Assist-
ance Act; and 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1409 
(E) projects that do not qualify as eligible multifamily 
housing projects pursuant to section 512(2) of this subtitle. 
Subtitle B—Miscellaneous Provisions 
SEC. 
531. REHABILITATION 
GRANTS 
FOR CERTAIN 
INSURED 
PROJECTS. 
Section 236 of the National Housing Act (12 U.S.C. 1715z-
1) is amended by adding at the end the following: 
"(s) GRANT AUTHORITY.— 
"(1) IN GENERAL.—The Secretary may make grants for the 
capital costs of rehabilitation to owners of projects that meet 
the eligibility and other criteria set forth in, and in accordance 
with, this subsection. 
"(2) PROJECT ELIGIBILITY.—A project may be eligible for 
capital grant assistance under this subsection— 
"(A) if— 
"(i) the project is or was insured under any provi-
sion of title II of the National Housing Act; 
"(ii) the project was assisted under section 8 of 
the United States Housing Act of 1937 on the date 
of enactment of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997; and 
"(iii) the project mortgage was not held by a State 
agency as of the date of enactment of the Multifamily 
/^sisted Housing Reform and Affordability Act of 1997; 
"(B) if the project owner agrees to maintain the housing 
quality standards as required by the Secretary; 
"(C)(i) if the Secretary determines that the owner or 
purchaser of the project has not engaged in material 
adverse financial or managerial actions or omissions with 
regard to such project; or 
"(ii) if the Secretary elects to make such determination, 
that the owner or purchaser of the project has not engaged 
in material adverse fingincial or managerial actions or 
omissions with regard to other projects of such owner or 
purchaser that are federally assisted or financed with a 
loan fi'om, or mortgage insured or guaranteed by, an agency 
of the Federal Government; 
"(iii) material adverse financial or managerial actions 
or omissions, as the terms are used in this subparagraph, 
include— 
"(I) materially violating any Federal, State, or local 
law or regulation with regard to this project or any 
other federally assisted project, after receipt of notice 
and an opportunity to cure; 
"(II) materially breaching a contract for assistance 
under section 8 of the United States Housing Act of 
1937, after receipt of notice and an opportunity to 
cure; 
"(III) materially violating any applicable regulatory 
or other agreement with the Secretary or a participat-
ing administrative entity, after receipt of notice and 
an opportunity to cure; 
"(IV) repeatedly failing to make mortgage pay-
ments at times when project income was sufficient 
to maintain and operate the property; 
I l l STAT. 1410 
PUBLIC LAW 105-65—OCT. 27, 1997 
"(V) materially failing to maintain the property 
according to housing quality standards after receipt 
of notice and a reasonable opportunity to cure; or 
"(VI) committing any act or omission that would 
warrsuit suspension or debarment by the Secretary; 
and 
"(iv) the term 'owner' as used in this subparagraph, 
in addition to it having the same meaning as in section 
8(f) of the United States Housing Act of 1937, also means 
an affiliate of the owner; the term 'purchaser' as used 
in this subsection means any private person or entity, 
including a cooperative, an agency of the Federal Govern-
ment, or a public housing agency, that, upon purchase 
of the project, would have the legal right to lease or sub-
lease dwelling units in the project, and also means an 
affiliate of the purchaser; the terms 'affiliate of the owner' 
and 'affiliate of the purchaser' megms any person or entity 
(including, but not limited to, a general partner or manag-
ing member, or an officer of either) that controls an owner 
or purchaser, is controlled by an owner or purchaser, or 
is under common control with the owner or purchaser; 
the term 'control' means the direct or indirect power (under 
contract, equity ownership, the right to vote or determine 
a vote, or otherwise) to direct the financial, legal, beneficial 
or other interests of the owner or purchaser; and 
"(D) if the project owner demonstrates to the satisfac-
tion of the Secretary— 
"(i) using information in a comprehensive needs 
assessment, that capital grant assistance is needed 
for rehabilitation of the project; and 
"(ii) that project income is not sufficient to support 
such rehabilitation. 
"(3) ELIGIBLE PURPOSES.—The Secretary may make grants 
to the owners of eligible projects for the purposes of— 
"(A) pajnnent into project replacement reserves; 
"(B) debt service payments on non-Federal rehabilita-
tion loans; and 
"(C) payment of nonrecurring maintenance and capital 
improvements, under such terms and conditions as are 
determined by the Secretary. 
"(4) GRANT AGREEMENT.— 
"(A) IN GENERAL.—The Secretary shall provide in any 
grant agreement under this subsection that the grant shall 
be terminated if the project fails to meet housing quality 
standards, as applicable on the date of enactment of the 
Multifamily Assisted Housing Reform and Affordability Act 
of 1997, or any successor standards for the physical condi-
tions of projects, as are determined by the Secretary. 
"(B) AFFORDABILITY AND USE CLAUSES.—The Secretary 
shall include in a grant agreement under this subsection 
a requirement for the project owners to maintain such 
affordability and use restrictions as the Secretary deter-
mines to be appropriate. 
"(C) OTHER TERMS.—The Secretary may include in a 
grant agreement under this subsection such other terms 
and conditions as the Secretary determines to be necessary. 
"(5) DELEGATION.— 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1411 
"(A) IN GENERAL.—In addition to the authorities set 
forth in subsection (p), the Secretary may delegate to State 
and local governments the responsibility for the administra-
tion of grants under this subsection. Any such government 
may carry out such delegated responsibilities directly or 
under contracts. 
"(B) ADMINISTRATION COSTS.—In addition to other 
eligible purposes, amounts of grants under this subsection 
may be made available for costs of administration under 
subparagraph (A). 
"(6) FUNDING.— 
"(A) IN GENERAL.—For purposes of carrying out this 
subsection, the Secretary may make available amounts that 
are unobligated amounts for contracts for interest reduction 
pajnnents— 
"(i) that were previously obligated for contracts 
for interest reduction pajonents under this section until 
the insured mortgage under this section was extin-
guished; 
"(ii) that become available as a result of the 
outstanding principal balance of a mortgage having 
been written down; 
"(iii) that are uncommitted balances within the 
limitation on maximum payments that may have been, 
before the date of enactment of the Multifamily 
Assisted Housing Reform £uid Aifordability Act of 1997, 
permitted in any fiscal year; or 
"(iv) that become available from any other source. 
"(B) LIQUIDATION AUTHORITY.—The Secretary may liq-
uidate obligations entered into imder this subsection under 
section 1305(10) of title 31, United States Code. 
"(C) CAPITAL GRANTS.—In making capital grants under 
the terms of this subsection, using the amounts that the 
Secretary has recaptured fi*om contracts for interest reduc-
tion payments, the Secretary shall ensure that the rates 
and amounts of outlays do not at any time exceed the 
rates and amounts of outlays that would have been experi-
enced if the insured mortgage had not been extinguished 
or the principal amount had not been written down, and 
the interest reduction payments that the Secretary has 
recaptured had continued in accordance with the terms 
in effect immediately prior to such extinguishment or write-
down.". 
SEC. 532. GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR MULTI- 42 USC 1437f 
FAMILY HOUSING PROJECTS. 
note. 
Not later thsin the expiration of the 18-month period beginning 
on the date of the enactment of this Act, the Comptroller General 
of the United States shall submit a report to the Congress 
analyzing— 
(1) the housing projects for which project-based assistance 
is provided under section 8 of the United States Housing Act 
of 1937, but which are not subject to a mortgage insured 
or held by the Secretary under the National Housing Act; 
(2) how State and local housing finance agencies have 
benefited financially from the rental assistance program under 
section 8 of the United States Housing Act of 1937, including 
I l l STAT. 1412 
PUBLIC LAW 105-65—OCT. 27, 1997 
any benefits from fees, bond 
financings, 
and 
mortgage 
refinancings; and 
(3) the extent and effectiveness of State and local housing 
finance agencies oversight of the physical and financial manage-
ment and condition of multifamily housing projects for which 
project-based assistance is provided under section 8 of the 
United States Housing Act of 1937. 
Subtitle C—Enforcement Provisions 
12 use 1735f-14 
SEC. 541. IMPLEMENTATION. 
^°^^' 
(a) ISSUANCE OF NECESSARY REGULATIONS.—Notwithstanding 
section 7(o) of the Department of Housing £ind Urban Development 
Act or part 10 of title 24, Code of Federal Regulations (as in 
existence on the date of enactment of this Act), the Secretary 
shall issue such regulations as the Secretary determines to be 
necessary to implement this subtitle and the amendments made 
by this subtitle in accordance with section 552 or 553 of title 
5, United States Code, as determined by the Secretary. 
(b) USE OF EXISTING REGULATIONS.—In implementing any 
provision of this subtitle, the Secretary may, in the discretion 
of the Secretary, provide for the use of existing regulations to 
the extent appropriate, without rulemaking. 
SEC. 542. INCOME VERIFICATION. 
(a) REINSTITUTION OF REQUIREMENTS REGARDING HUD ACCESS 
TO CERTAIN INFORMATION OF STATE AGENCIES.— 
42 use 503. 
(1) IN GENERAL.—Section 303(i) of the Social Security Act 
is amended by striking paragraph (5). 
42 use 503 note. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to any request for information made after 
the date of the enactment of this Act. 
(b) REPEAL OF TERMINATION REGARDING HOUSING ASSISTANCE 
PROGRAMS.—Section 6103(1)(7)(D) of the Internal Revenue Code 
26 use 6103. 
of 1986 is amended by striking the last sentence. 
Part 1—FHA Single Family and Multifamily 
Housing 
SEC 551. AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES. 
Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 
1708(c)(3)(C)) is amended by inserting after the first sentence the 
following: "Notvdthstanding paragraph (4)(A), a suspension shall 
be effective upon issuance by the Board if the Board determines 
that there exists adequate evidence that immediate action is 
required to protect the financial interests of the Department or 
the public". 
SEC. 552. EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY 
AND MULTIFAMILY HOUSING PROGRAMS. 
Section 254 of the National Housing Act (12 U.S.C. 1715z-
19) is amended to read as follows: 
"SEC. 254. EQUITY SKIMMING PENALTY. 
"(a) IN GENERAL.—^Whoever, as an owner, agent, or manager, 
or who is otherwise in custody, control, or possession of a multifam-
ily project or a 1- to 4-family residence that is security for a 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1413 
mortgage note that is described in subsection (b), willfully uses 
or authorizes the use of any part of the rents, assets, proceeds, 
income, or other funds derived from property covered by that mort-
gage note for any purpose other than to meet reasonable and 
necessary expenses that include expenses approved by the Secretary 
if such approval is required, in a period during which the mortgage 
note is in default or the project is in a nonsurplus cash position, 
as defined by the regulatory agreement covering the property, or 
the mortgagor has failed to comply with the provisions of such 
other form of regulatory control imposed by the Secretary, shall 
be fined not more than $500,000, imprisoned not more than 5 
years, or both. 
"(b) MORTGAGE NOTES DESCRIBED.—For purposes of subsection 
(a), a mortgage note is described in this subsection if it— 
"(1) is insured, acquired, or held by the Secretary pursuant 
to this Act; 
"(2) is made pursuant to section 202 of the Housing Act 
of 1959 (including property still subject to section 202 program 
requirements that existed before the date of enactment of the 
Cranston-Gonzalez National Affordable Housing Act); or 
"(3) is insured or held pursuant to section 542 of the 
Housing and Community Development Act of 1992, but is not 
reinsured under section 542 of the Housing and Community 
Development Act of 1992.". 
SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, 
AND OTHER PARTICIPANTS IN FHA PROGRAMS. 
(a) CHANGE TO SECTION TITLE.—Section 536 of the National 
Housing Act (12 U.S.C. 1735f-14) is amended by striking the section 
heading and the section designation and inserting the following: 
"SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, 
AND OTHER PARTICIPANTS IN FHA PROGRAMS.". 
(b) EXPANSION OF PERSONS ELIGIBLE FOR PENALTY.—Section 
536(a) of the National Housing Act (12 U.S.C. 1735f-14(a)) is 
amended— 
(1) in paragraph (1), by striking the first sentence and 
inserting the following: "If a mortgagee approved under the 
Act, a lender holding a contract of insurance under title I, 
or a principal, officer, or employee of such mortgagee or lender, 
or other person or entity participating in either an insured 
mortgage or title I loan transaction under this Act or providing 
assistance to the borrower in connection with any such loan, 
including sellers of the real estate involved, borrowers, closing 
agents, title companies, real estate agents, mortgage brokers, 
appraisers, loan correspondents and dealers, knowingly and 
materially violates any applicable provision of subsection (b), 
the Secretary may impose a civil money penalty on the mortga-
gee or lender, or such other person or entity, in accordance 
with this section. The penalty under this paragraph shall be 
in addition to any other available civil remedy or any available 
criminal penalty, and may be imposed whether or not the 
Secretary imposes other administrative sanctions."; and 
(2) in paragraph (2)— 
(A) in the first sentence, by inserting "or such other 
person or entity" after "lender"; and 
(B) in the second sentence, by striking "provision" and 
inserting "the provisions". 
I l l STAT. 1414 
PUBLIC LAW 105-65—OCT. 27, 1997 
(c) ADDITIONAL VIOLATIONS FOR MORTGAGEES, LENDERS, AND 
OTHER PARTICIPANTS IN FHA PROGRAMS.—Section 536(b) of the 
National Housing Act (12 U.S.C. 1735f-14(b)) is amended— 
(1) by redesignating paragraph (2) as paragraph (3); 
(2) by inserting after paragraph (1) the following: 
"(2) The Secretary may impose a civil money penalty under 
subsection (a) for any knowing and material violation by a 
principal, officer, or employee of a mortgagee or lender, or 
other participants in either an insured mortgage or title I 
loan transaction under this Act or provision of assistance to 
the borrower in connection with any such loan, including sellers 
of the real estate involved, borrowers, closing agents, title 
companies, real estate agents, mortgage brokers, appraisers, 
loan correspondents, and dealers for— 
"(A) submission to the Secretary of information that 
was false, in connection with any mortgage insured under 
this Act, or any loan that is covered by a contract of 
insur£ince under title I of this Act; 
"(B) falsely certifying to the Secretary or submitting 
to the Secretary a false certification by another person 
or entity; or 
"(C) failure by a loan correspondent or dealer to submit 
to the Secretary information which is required by regula-
tions or directives in connection with any loan that is 
covered by a contract of insurance under title L"; and 
(3) in paragraph (3), as redesignated, by striking "or para-
graph (1)(F)" and inserting "or (F), or paragraph (2)(A), (B), 
or (C)". 
(d) CONFORMING AND TECHNICAL AMENDMENTS.—Section 536 
of the National Housing Act (12 U.S.C. 1735f-14) is amended— 
(1) in subsection (c)(1)(B), by inserting after "lender" the 
following: "or such other person or entitjr"; 
(2) in subsection (d)(1)— 
(A) by inserting "or such other person or entity" after 
"lender"; and 
(B) by striking "part 25" and inserting "parts 24 and 
25"; and 
(3) in subsection (e), by inserting "or such other person 
or entity after "lender" each place that term appears. 
Part 2—FHA Multifamily Provisions 
SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, 
OFFICERS, 
DIRECTORS, AND 
CERTAIN MANAGING 
AGENTS OF MULTIFAMILY PROJECTS. 
(a) CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGA-
GORS.—Section 537 of the National Housing Act (12 U.S.C. 1735f-
15) is amended— 
(1) in subsection (b)(1), by striking "on that mortgagor" 
and inserting "on that mortgagor, on a general partner of 
a partnership mortgagor, or on any officer or director of a 
corporate mortgagor"; 
(2) in subsection (c)— 
(A) by striking the subsection heading and inserting 
the following: 
"(c) OTHER VIOLATIONS.—"; and 
(B) in paragraph (1)— 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1415 
(i) by striking "VIOLATIONS.—The Secretary may" 
and all that follows through the colon and inserting 
the following: 
"(A) LIABLE PARTIES.—The Secretary may also impose 
a civil money penalty under this section on— 
"(i) any mortgagor of a property that includes 5 
or more living units and that has a mortgage insured, 
coinsured, or held pursuEint to this Act; 
"(ii) any general partner of a partnership mortga-
gor of such property; 
"(iii) any officer or director of a corporate mortga-
gor; 
"(iv) any agent employed to manage the property 
that has an identity of interest with the mortgagor, 
with the general partner of a partnership mortgagor, 
or with any officer or director of a corporate mortgagor 
of such property; or 
"(v) any member of a limited liability company 
that is the mortgagor of such property or is the general 
partner of a limited partnership mortgagor or is a 
partner of a general partnership mortgagor. 
"(B) VIOLATIONS.—^A penalty may be imposed under 
this section upon any liable party under subparagraph 
(A) that knowingly and materially takes any of the follow-
ing actions:"; 
(ii) in subparagraph (B), as designated by clause 
(i), by redesignating the subparagraph designations 
(A) through (L) as clauses (i) through (xii), respectively; 
(iii) by adding after clause (xii), as redesignated 
by clause (ii), the following: 
"(xiii) Failure to maintain the premises, accom-
modations, any living unit in the project, and the 
grounds and equipment appurteneint thereto in good 
repair and condition in accordance with regulations 
and requirements of the Secretary, except that nothing 
in this clause shall have the effect of altering the 
provisions of £in existing regulatory agreement or feder-
ally insured mortgage on the property. 
"(xiv) Failure, by a mortgagor, a general partner 
of a partnership mortgagor, or an officer or director 
of a corporate mortgagor, to provide management for 
the project that is acceptable to the Secretary pursuant 
to regulations and requirements of the Secretary. 
"(xv) Failure to provide access to the books, 
records, and accounts related to the operations of the 
mortgaged property and of the project."; and 
(iv) in the last sentence, by deleting "of such agree-
ment" and inserting "of this subsection"; 
(3) in subsection (d)— 
(A) in paragraph (1)(B), by inserting after "mortgagor" 
the following: ", general partner of a partnership mortgagor, 
officer or director of a corporate mortgagor, or identity 
of interest agent employed to manage the property"; and 
(B) by adding at the end the following: 
"(5) PAYMENT OF PENALTY.—No pajonent of a civil money 
penalty levied imder this section shall be payable out of project 
income."; 
I l l STAT. 1416 
PUBLIC LAW 105-65—OCT. 27, 1997 
Regulations. 
12 use 1735f-15 
note. 
Publication. 
12 use 1735f-15 
note. 
42 use 1437z. 
(4) in subsection (e)(1), by deleting "a mortgagor" and 
inserting "an entity or person"; 
(5) in subsection (f), by inserting after "mortgagor" each 
place such term appears the following: ", general partner of 
a partnership mortgagor, officer or director of a corporate mort-
gagor, or identity of interest agent employed to manage the 
property"; 
(6) by striking the heading of subsection (f) and inserting 
the following: "CIVIL MONEY PENALTIES AGAINST MULTIFAMILY 
MORTGAGORS, GENERAL PARTNERS OF PARTNERSHIP MORTGA-
GORS, OFFICERS AND DIRECTORS OF CORPORATE MORTGAGORS, 
AND CERTAIN MANAGING AGENTS"; and 
(7) by adding at the end the following: 
"(k) IDENTITY OF INTEREST MANAGING AGENT.—In this section, 
the terms 'agent employed to manage the property that has an 
identity of interest' and 'identity of interest agent' mean an entity— 
"(1) that has management responsibility for a project; 
"(2) in which the ownership entity, including its general 
partner or partners (if applicable) and its officers or directors 
(if applicable), has an ownership interest; and 
"(3) over which the ownership entity exerts effective con-
trol.". 
(b) IMPLEMENTATION.— 
(1) PUBLIC COMMENT.—The Secretary shall implement the 
amendments made by this section by regulation issued after 
notice and opportunity for public comment. The notice shall 
seek comments primarily as to the definitions of the terms 
"ownership interest in" and "effective control", as those terms 
are used in the definition of the terms "agent employed to 
manage the property that has an identity of interest" and 
"identity of interest agent". 
(2) TIMING.—A proposed rule implementing the amend-
ments made by this section shall be published not later than 
1 year after the date of enactment of this Act. 
(c) APPLICABILITY OF AMENDMENTS.—The amendments made 
by subsection (a) shall apply only with respect to— 
(1) violations that occur on or after the effective date of 
the final regulations implementing the amendments made by 
this section; and 
(2) in the case of a continuing violation (as determined 
by the Secretary of Housing and Urban Development), any 
portion of a violation that occurs on or after that date. 
SEC. 562. CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH 
SECTION 8 HAP CONTRACTS. 
(a) BASIC AUTHORITY.—Title I of the United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended— 
(1) by designating the second section designated as section 
27 (as added by section 903(b) of Pubhc Law 104-193 (110 
Stat. 2348)) as section 28; and 
(2) by adding at the end the following: 
42 use 1437Z-1. 
"SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS. 
"(a) IN GENERAL.— 
"(1) EFFECT ON OTHER REMEDIES.—The penalties set forth 
in this section shall be in addition to any other available 
civil remedy or any available criminal penalty, and may be 
•^0^sfi»r-' 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1417 
imposed regardless of whether the Secretary imposes other 
administrative sanctions. 
"(2) FAILURE OF SECRETARY.—The Secretary may not 
impose penalties under this section for a violation, if a material 
cause of the violation is the failure of the Secretary, an agent 
of the Secretary, or a public housing agency to comply with 
an existing agreement. 
"(b) VIOLATIONS OF HOUSING ASSISTANCE PAYMENT CONTRACTS 
FOR WHICH PENALTY MAY BE IMPOSED.— 
"(1) LIABLE PARTIES.—The Secretary may impose a civil 
money penalty under this section on— 
"(A) any owner of a property receiving project-based 
assistance under section 8; 
"(B) any general partner of a partnership owner of 
that property; and 
"(C) any agent employed to manage the property that 
has an identity of interest with the owner or the general 
partner of a partnership owner of the property. 
"(2) VIOLATIONS.—A penalty may be imposed under this 
section for a knowing and material breach of a housing assist-
ance payments contract, including the following— 
"(A) failure to provide decent, safe, and sanitary hous-
ing pursuant to section 8; or 
"(B) knowing or willful submission of false, fictitious, 
or fraudulent statements or requests for housing assistance 
payments to the Secretary or to any department or agency 
of the United States. 
"(3) AMOUNT OF PENALTY.—The amoimt of a penalty 
imposed for a violation under this subsection, as determined 
by the Secretary, may not exceed $25,000 per violation. 
"(c) AGENCY PROCEDURES.— 
Regulations. 
"(1) ESTABLISHMENT.—The Secretary shall issue regula-
tions establishing standards and procedures governing the 
imposition of civil money penalties under subsection (b). These 
standards and procedures— 
"(A) shall provide for the Secretary or other department 
official to make the determination to impose the penalty; 
"(B) shall provide for the imposition of a penalty only 
after the liable party has received notice and the oppor-
tunity for a hearing on the record; and 
"(C) may provide for review by the Secretary of any 
determination or order, or interlocutory ruling, arising from 
a hearing and judicial review, as provided under subsection 
(d). 
"(2) FINAL ORDERS.— 
"(A) IN GENERAL.—If a hearing is not requested before 
the expiration of the 15-day period beginning on the date 
on which the notice of opportunity for hearing is received, 
the imposition of a penalty under subsection (b) shall con-
stitute a final and unappealable determination. 
"(B) EFFECT OF REVIEW.—If the Secretary reviews the 
determination or order, the Secretary may affirm, modify, 
or reverse that determination or order. 
"(C) FAILURE TO REVIEW.—If the Secretary does not 
review that determination or order before the expiration 
of the 90-day period beginning on the date on which the 
I l l STAT. 1418 
PUBLIC LAW 105-65—OCT. 27, 1997 
determination or order is issued, the determination or order 
shall be final. 
"(3) FACTORS IN DETERMINING AMOUNT OF PENALTY.—In 
determining the amount of a penalty imder subsection (b), 
the Secretary shall take into consideration— 
"(A) the gravity of the offense; 
"(B) any history of prior offenses by the violator (includ-
ing offenses occurring before the enactment of this section); 
"(C) the ability of the violator to pay the penalty; 
"(D) any injury to tenants; 
"(E) any injury to the public; 
"(F) any benefits received by the violator as a result 
of the violation; 
"(G) deterrence of future violations; and 
"(H) such other factors as the Secretary may establish 
by regulation. 
"(4) PAYMENT OF PENALTY.—No payment of a civil money 
penalty levied under this section shall be payable out of project 
income. 
"(d) JUDICIAL REVIEW OF AGENCY DETERMINATION.—Judicial 
review of determinations made under this section shall be carried 
out in accord£ince with section 537(e) of the National Housing 
Act. 
"(e) REMEDIES FOR NONCOMPLIANCE.— 
"(1) JUDICIAL INTERVENTION.— 
"(A) IN GENERAL.—If a person or entity fails to comply 
with the determination or order of the Secretary imposing 
a civil money penalty under subsection (b), after the deter-
mination or order is no longer subject to review as provided 
by subsections (c) and (d), the Secretary may request the 
Attorney General of the United States to bring an action 
in an appropriate United States district court to obtain 
a monetary judgment against that person or entity and 
such other relief as may be available. 
"(B) FEES AND EXPENSES.—Any monetary judgment 
awarded in an action brought under this paragraph may, 
in the discretion of the court, include the attorney's fees 
and other expenses incurred by the United States in 
connection with the action. 
"(2) NONREVIEWABILITY OF DETERMINATION OR ORDER.— 
In an action under this subsection, the validity and appropriate-
ness of the determination or order of the Secretary imposing 
the penalty shall not be subject to review. 
"(f) SETTLEMENT BY SECRETARY.—The Secretary may com-
promise, modify, or remit any civil money penalty which may be, 
or has been, imposed under this section. 
"(g) DEPOSIT OF PENALTIES.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, if the mortgage covering the property receiving assistance 
under section 8 is insured or was formerly insured by the 
Secretary, the Secretary shall apply all civil money penalties 
collected under this section to the appropriate insurance fund 
or funds established under this Act, as determined by the 
Secretary. 
"(2) EXCEPTION.—Notwithstanding any other provision of 
law, if the mortgage covering the property receiving assistance 
under section 8 is neither insured nor formerly insured by 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1419 
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note. 
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note. 
the Secretary, the Secretary shall make all civil money penalties 
collected under this section available for use by the appropriate 
office within the Department for administrative costs related 
to enforcement of the requirements of the various programs 
administered by the Secretary. 
"(h) DEFINITIONS.—In this section— 
"(1) the term 'agent employed to manage the property 
that has an identity of interest' means an entity— 
"(A) that has msmagement responsibility for a project; 
"(B) in which the ownership entity, including its gen-
eral partner or partners (if applicable), has an ownership 
interest; and 
"(C) over which such ownership entity exerts effective 
control; and 
"(2) the term 'knowing* means having actual knowledge 
of or acting with deliberate ignorance of or reckless disregard 
for the prohibitions under this section.". 
(b) APPLICABILITY.—The amendments made by subsection (a) 
shall apply only with respect to— 
(1) violations that occur on or after the effective date of 
final regulations implementing the amendments made by this 
section; and 
(2) in the case of a continuing violation (as determined 
by the Secretary of Housing and Urban Development), any 
portion of a violation that occurs on or after such date. 
(c) IMPLEMENTATION.— 
(1) REGULATIONS .— 
(A) IN GENERAL.—The Secretary shall implement the 
amendments made by this section by regulation issued 
after notice and opportunity for public comment. 
(B) COMMENTS SOUGHT.—The notice under subpara-
graph (A) shall seek comments as to the definitions of 
the terms "ownership interest in" and "effective control", 
as such terms are used in the definition of the term "agent 
employed to manage such property that has an identity 
of interest". 
(2) TIMING.—A proposed rule implementing the amend- Publication. 
ments made by this section shall be published not later than 
1 year after the date of enactment of this Act. 
SEC. 
563. 
EXTENSION 
OF 
DOUBLE 
DAMAGES 
REMEDY. 
Section 421 of the Housing and Community Development Act 
of 1987 (12 U.S.C. 1715z-4a) is amended— 
(1) in subsection (a)(1)— 
(A) in the first sentence, by striking "Act; or (B)" and 
inserting the following: "Act; (B) a regulatory agreement 
that applies to a multifamily project whose mortgage is 
insured or held by the Secretary under section 202 of 
the Housing Act of 1959 (including property subject to 
section 202 of such Act as it existed before enactment 
of the Cranston-Gonzalez National Affordable Housing Act 
of 1990); (C) a regulatory agreement or such other form 
of regulatory control as may be imposed by the Secretary 
that applies to mortgages insured or held by the Secretary 
under section 542 of the Housing and Community Develop-
ment Act of 1992, but not reinsured under section 542 
I l l STAT. 1420 
PUBLIC LAW 105-65—OCT. 27, 1997 
42 use 1437f 
note. 
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note. 
President. 
of the Housing and Community Development Act of 1992; 
or (D)"; and 
(B) in the second sentence, by inserting after "agree-
ment" the following: ", or such other form of regulatory 
control as may be imposed by the Secretary,"; 
(2) in subsection (a)(2), by inserting after "Act," the follow-
ing: "under section 202 of the Housing Act of 1959 (including 
section 202 of such Act as it existed before enactment of the 
Cranston-Gonzalez National Affordable Housing Act of 1990) 
and under section 542 of the Housing and Community Develop-
ment Act of 1992,"; 
(3) in subsection (b), by inserting after "agreement" the 
following: ", or such other form of regulatory control as may 
be imposed by the Secretary,"; 
(4) in subsection (c)— 
(A) in the first sentence, by inserting after "agreement" 
the following: ", or such other form of regulatory control 
as may be imposed by the Secretary,"; and 
(B) in the second sentence, by inserting before the 
period the following: "or, in the case of any project for 
which the mortgage is held by the Secretary under section 
202 of the Housing Act of 1959 (including property subject 
to section 202 of such Act as it existed before enactment 
of the Cranston-Gonzalez National Affordable Housing Act 
of 1990), to the project or to the Department for use by 
the appropriate office within the Department for adminis-
trative costs related to enforcement of the requirements 
of the various programs administered by the Secretary, 
as appropriate"; and 
(5) in subsection (d), by inserting after "agreement" the 
following: ", or such other form of regulatory control as may 
be imposed by the Secretary,". 
SEC. 
564. 
OBSTRUCTION 
OF 
FEDERAL 
AUDITS. 
Section 1516(a) of title 18, United States Code, is amended 
by inserting after "under a contract or subcontract," the following: 
"or relating to any property that is security for a mortgage note 
that is insured, guaranteed, acquired, or held by the Secretary 
of Housing and Urban Development pursuant to any Act adminis-
tered by the Secretary,". 
Subtitle D—Office of Multifamily Housing 
Assistance Restructuring 
SEC. 571. ESTABLISHMENT OF OFFICE OF MULTIFAMILY HOUSING 
ASSISTANCE RESTRUCTURING. 
There is hereby established an office within the Department 
of Housing and Urban Development, which shall be Imown as 
the Office of Multifamily Housing Assistance Restructuring. 
SEC. 572. DIRECTOR. 
(a) APPOINTMENT.—The Office shall be under the management 
of a Director, who shall be appointed by the President by and 
with the advice and consent of the Senate, from among individuals 
who are citizens of the United States and have a demonstrated 
understanding of financing and mortgage restructuring for afford-
able multifamily housing. Not later than 60 days after the date 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1421 
of the enactment of this Act, the President shall submit to the 
Senate a nomination for initial appointment to the position of 
Director. 
(b) VACANCY.—A vacancy in the position of Director shall be 
filled in the manner in which the original appointment was made 
under subsection (a). 
/ 
(c) 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 and have a demonstrated 
understanding of financing and mortgage restructuring for 
affordable multifamily housing. 
(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 (b). 
SEC. 573. DUTY AND AUTHORITY OF DIRECTOR. 
(a) DUTY.—The Secretary shall, acting through the Director, 
administer the program of mortgage and rental 
assistance 
restructuring for eligible multifamily housing projects under subtitle 
A. During the period before the Director is appointed, the Secretary 
may carry out such program. 
(b) AUTHORITY.—The Director is authorized to make such deter-
minations, take such actions, issue such regulations, and perform 
such functions assigned to the Director under law as the Director 
determines necessary to carry out such functions, subject to the 
review and approval of the Secretary. The Director shall semiannu-
ally submit a report to the Secretary regarding the activities, deter-
minations, and actions of the Director. 
(c) DELEGATION OF AUTHORITY.—The Director may delegate 
to officers and employees of the Office (but not to contractors, 
subcontractors, or consultants) any of the functions, powers, and 
duties of the Director, as the Director considers appropriate. 
(d) INDEPENDENCE IN PROVIDING INFORMATION TO CONGRESS.— 
(1) IN GENERAL.—Notwithstanding subsection (a) or (b), 
the Director shall not be required to obtain the prior approval, 
comment, or review of any officer or agency of the United 
States before submitting to the Congress, or any committee 
or subcommittee thereof, any reports, recommendations, testi-
mony, 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. 
(2) REQUIREMENT.—If the Director determines at any time 
that the Secretary is taking or has taken any action that 
interferes with the ability of the Director to carry out the 
duties of the Director under this Act or that affects the adminis-
tration of the program under subtitle A of this Act in a manner 
that is inconsistent with the purposes of this Act, including 
any proposed action by the Director, in the discretion of the 
Director, that is overruled by the Secretary, the Director shall 
immediately report directly to the Committee on Banking and 
Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the 
42 use 1437f 
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Reports. 
Reports. 
I l l STAT. 1422 
PUBLIC LAW 105-65—OCT. 27, 1997 
Senate regarding such action. Notwithstanding subsection (a) 
or (b), any determination or report under this paragraph by 
the Director shall not be subject to prior review or approval 
of the Secretary. 
42 use 1437f 
SEC. 574. PERSONNEL. 
(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 Federal Deposit 
Insurance Corporation. 
(c) PERSONNEL OF OTHER FEDERAL AGENCIES.—In carrying out 
the duties of the Office, the Director may use information, services, 
staff, and facilities of any executive agency, independent agency, 
or department on a reimbursable basis, with the consent of such 
agency or department. 
(d) OUTSIDE EXPERTS AND CONSULTANTS.—The Director may 
procure temporary and intermittent services under section 3109(b) 
of title 5, United States Code. 
42 use 1437f 
SEC. 575. BUDGET AND FINANCIAL REPORTS. 
^°^^' 
(a) FINANCIAL OPERATING PLANS AND FORECASTS.—Before the 
beginning of each fiscal year, the Secretary shall submit a copy 
of the financial operating plans and forecasts for the Office to 
the Director of the Office of Management and Budget. 
(b) REPORTS OF OPERATIONS.—^As soon as practicable after the 
end of each fiscal year and each quarter thereof, the Secretary 
shall submit a copy of the report of the results of the operations 
of the Office during such period to the Director of the Office of 
Management and Budget. 
(c) INCLUSION IN PRESIDENT'S BUDGET.—The annual plans, fore-
casts, and reports required under this section shall be included: 
(1) in the Budget of the United States in the appropriate form; 
and (2) in the congressional justifications of the Department of 
Housing and Urban Development for each fiscal year in a form 
determined by the Secretary. 
42 use 1437f 
SEC. 576. LIMITATION ON SUBSEQUENT EMPLOYMENT. 
Neither the Director nor any former officer or employee of 
the Office who, while employed by the 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 
of title 5, United States Code, may, during the 2-year period begin-
ning on the date of separation from emplojonent by the Office, 
accept compensation from any party (other than a Federal agency) 
having any financial interest in any mortgage restructuring and 
rental assistance sufficiency plan under subtitle A or comparable 
matter in which the Director or such officer or employee had direct 
participation or supervision. 
PUBLIC LAW 105-65—OCT. 27, 1997 
111 STAT. 1423 
SEC. 577. 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. 
SEC. 578. SUSPENSION OF PROGRAM BECAUSE OF FAILURE TO 
APPOINT DIRECTOR. 
(a) IN GENERAL.—If, upon the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the initial 
appointment to the office of Director has not been made, the 
operation of the program under subtitle A shall immediately be 
suspended and such provisions shall not have any force or effect 
during the period that ends upon the making of such appointment. 
(b) 
INTERIM APPLICABILITY OF DEMONSTRATION PROGRAM.— 
Notwithstanding any other provision of law, during the period 
referred to in subsection (a), the Secretary shall carry out sections 
211 and 212 of the Departments of Veterans Affairs and Housing 
Eind Urban Development, and Independent Agencies Appropriations 
Act, 1997. For purposes of applying such sections pursuant to 
the authority under this section, the term "expiring contract" shall 
have the meaning given in such sections, except that such term 
shall also include any contract for project-based assistance under 
section 8 of the United States Housing Act of 1937 that expires 
during the period that the program is suspended under subsection 
(a). 
SEC. 579. TERMINATION. 
(a) REPEAL.—Subtitle A (except for section 524) and subtitle 
D (except for this section) are repealed effective October 1, 2001. 
(b) EXCEPTION.—Notwithstanding the repeal under subsection 
(a), the provisions of subtitle A (as in effect immediately before 
such repeal) shall apply with respect to projects and programs 
for which binding commitments have been entered into under this 
Act before October 1, 2001. 
(c) TERMINATION OF DIRECTOR AND OFFICE.—The Office of 
Multifamily Housing Assistance Restructuring and the position of 
Director of such Office shall terminate upon September 30, 2001. 
(d) TRANSFER OF AUTHORITY.—Effective upon the termination 
under subsection (c), any authority and responsibilities assigned 
to the Director that remain applicable after such date pursuant 
to subsection (b) are transferred to the Secretary. 
42 use 1437f 
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42 use 1437f 
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42 use 1437f 
note. 
Effective date. 
I l l STAT. 1424 
PUBLIC LAW 105-65—OCT. 27, 1997 
This Act may be cited as the "Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1998". 
Approved October 27, 1997. 
LEGISLATIVE HISTORY—H.R. 2158 (S. 1034): 
HOUSE REPORTS: Nos. 105-175 (Comm. on Appropriations) and 105-297 (Comm. 
of Conference). 
SENATE REPORTS: No. 105-53 accompanying S. 1034 (Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 143 (1997): 
July 15, 16, considered and passed House. 
July 22, considered and passed Senate, amended. 
Oct. 8, House agreed to conference report. 
Oct. 9, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997): 
Oct. 27, Presidential statement. 
Nov. 1, President's special message on line item veto. 
FEDERAL REGISTER, Vol. 62 (1997): 
Nov. 4, Cancellation of items piirsuant to the Line Item Veto Act.