Housing Opportunity Program Extension Act of 1996
PL 104-120 (S.1494), enacted 03/28/1996

110 STAT. 834 
PUBLIC LAW 104-120—MAR. 28, 1996 
Public Law 104-120 
104th Congress 
Mar. 28, 1996 
[S. 1494] 
Housing 
Opportunity 
Program 
Extension 
Act of 1996. 
12 u s e 1701 
note. 
42 u s e 1437f 
note. 
12 u s e 4101 
note. 
An Act 
To provide an extension for fiscal year 1996 for certain programs administered 
by the Secretary of Housing and Urban Development and the Secretary of Agri-
culture, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Housing Opportunity Program 
Extension Act of 1996". 
SEC. 2. MULTIFAMILY HOUSING ASSISTANCE. 
(a) SECTION 8 CONTRACT RENEWAL.—Notwithstanding section 
405(b) of the Balanced Budget Downpayment Act, I (PubUc Law 
104-99; 110 Stat. 44), at the request of the owner of any project 
assisted under section 8(e)(2) of the United States Housing Act 
of 1937 (as such section existed immediately before October 1, 
1991), the Secretary of Housing and Urban Development may 
renew, for a period of 1 year, the contract for assistance under 
such section for such project that expires or terminates during 
fiscal year 1996 at current rent levels. 
(b) LOW-INCOME HOUSING PRESERVATION.— 
(1) USE OF AMOUNTS.—Notwithstanding any provision of 
the Balanced Budget Downpayment Act, I (Public Law 104-
99; 110 Stat. 26) or any other law, the Secretary shall use 
the amounts described in paragraph (2) of this subsection under 
the authority and conditions provided in the second undesig-
nated paragraph of the item relating to "HOUSING PROGRAMS— 
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING" in title II of 
the bill, H.R. 2099 (104th Congress), as passed the House 
of Representatives on December 7, 1995; except that for pur-
poses of this subsection, any reference in such undesignated 
paragraph to March 1, 1996, shall be construed to refer to 
April 15, 1996, any reference in such paragraph to July 1, 
1996, shall be construed to refer to August 15, 1996, and 
any reference in such paragraph to August 1, 1996, shall be 
construed to refer to September 15, 1996. 
(2) DESCRIPTION OF AMOUNTS.—Except as otherwise pro-
vided in any future appropriation Act, the amounts described 
under this paragraph are any amounts that— 
(A) are— 
(i) unreserved, unobligated amounts provided in 
an appropriation Act enacted before the date of the 
enactment of this Act; 
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 835 
(ii) provided under the Balanced Budget Downpay-
ment Act, I; or 
(iii) provided in any appropriation Act enacted 
after the date of the enactment of this Act; and 
(B) are provided for use in conjunction with properties 
that are ehgible for assistance under the Low-Income Hous-
ing Preservation and Resident Homeownership Act of 1990 
or the Emergency Low Income Housing Preservation Act 
of 1987. 
SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANTS. 
(a) DIRECT HOMEOWMERSHIP ACTIVITIES.—Notwithstanding the 
amendments made by section 907(b)(2) of the Cranston-Gonzalez 
National Affordable Housing Act, section 105(a)(25) of the Housing 
and Community Development Act of 1974, as in existence on 
September 30, 1995, shall apply to the use of assistance made 
available under title I of the Housing and Community Development 
Act of 1974 during fiscal year 1996. 
(b) INCREASE IN CUMULATIVE LIMIT.—Section 108(k)(l) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 
5308(k)(l)) is amended by striking "$3,500,000,000" and inserting 
"$4,500,000,000". 
SEC. 4. EXTENSION OF RURAL HOUSING PROGRAMS. 
(a) UNDERSERVED AREAS SET-ASIDE.—Section 509(f)(4)(A) of the 
Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended— 
(1) in the first sentence, by striking "fiscal years 1993 
and 1994" and inserting "fiscal year 1996"; and 
(2) in the second sentence, by striking "each". 
(b) RURAL MULTIFAMILY RENTAL HOUSING.—Section 515(b)(4) 
of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended 
by striking "September 30, 1994" and inserting "September 30, 
1996". 
(c) RURAL RENTAL HOUSING FUNDS FOR NONPROFIT ENTITIES.— 
The first sentence of section 515(w)(l) of the Housing Act of 1949 
(42 U.S.C. 1485(w)(l)) is amended by striking "fiscal years 1993 
and 1994" and inserting "fiscal year 1996". 
SEC. 5. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
RURAL AREAS. 
(a) IN GENERAL.—The provisions of section 5 of the bill, H.R. 
1691 (104th Congress), as passed the House of Representatives 
on October 30, 1995, are hereby enacted into law. 
(b) TECHNICAL AMENDMENT.—Section 538 of the Housing Act 
of 1949 (as added by the amendment made pursuant to subsection 
(a) of this section) is amended by striking "Homesteading and 
Neighborhood Restoration Act of 1995" each place it appears and 
inserting "Housing Opportunity Program Extension Act of 1996". 
SEC. 6. EXTENSION OF FHA MORTGAGE INSURANCE PROGRAM FOR 
HOME EQUITY CONVERSION MORTGAGES. 
(a) EXTENSION OF PROGRAM.—The first sentence of section 
255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
amended by striking "September 30, 1996" and inserting "Septem-
ber 30, 2000". 
(b) LIMITATION ON NUMBER OF MORTGAGES.—The second sen-
tence of section 255(g) of the National Housing Act (12 U.S.C. 
1715z-20(g)) is amended by striking "30,000" and inserting "50,000". 
42 use 5305 
note. 
Incorporation. 
42 use 1490P-2. 
42 use 1490p-2. 
110 STAT. 836 
PUBLIC LAW 104-120—MAR. 28, 1996 
(c) ELIGIBLE MORTGAGES.—Section 255(d)(3) of the National 
Housing Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as 
follows: 
"(3) be secured by a dwelling that is designed principally 
for a 1- to 4-family residence in which the mortgagor occupies 
1 of the units;". 
SEC. 7. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED 
SECURITIES. 
Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows: 
"(2) Notwithstanding any other provision of law and subject 
only to the absence of qualified requests for guarantees, to the 
authority provided in this subsection, and to the extent of or in 
such amounts as any funding limitation approved in appropriation 
Acts, the Association shall enter into commitments to issue guaran-
tees 
under 
this 
subsection 
in 
an 
aggregate 
amount 
of 
$110,000,000,000 during fiscal year 1996. There are authorized 
to be appropriated to cover the costs (as such term is defined 
in section 502 of the Congressional Budget Act of 1974) of guaran-
tees issued under this Act by the Association such sums as may 
be necessary for fiscal year 1996.". 
SEC. 8. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS. 
(a) RISK-SHARING PILOT PROGRAM.—^The first sentence of sec-
tion 542(b)(5) of the Housing and Community Development Act 
of 1992 (12 U.S.C. 1707 note) is amended by striking "on not 
more than 15,000 units over fiscal years 1993 and 1994" and insert-
ing "on not more than 7,500 units during fiscal year 1996". 
(b) HOUSING FINANCE AGENCY PILOT PROGRAM.—^The first sen-
tence of section 542(c)(4) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended by striking 
"on not to exceed 30,000 units over fiscal years 1993, 1994, and 
1995" and inserting "on not more than 12,000 units during fiscal 
year 1996". 
SEC. 9. SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING. 
(a) CONTRACT PROVISIONS AND REQUIREMENTS.—Section 6 of 
the United States Housing Act of 1937 (42 U.S.C. 1437d) is 
amended— 
(1) in subsection (k), in the matter following paragraph 
( 6 ) -
(A) by striking "on or near such premises" and inserting 
"on or off such premises"; and 
(B) by striking "criminal" the first place it appears; 
and 
(2) in subsection (1)(5), by striking "on or near such prem-
ises" and inserting "on or off such premises". 
(b) AVAILABILITY OF CRIMINAL RECORDS FOR SCREENING AND 
EVICTION.—Section 6 of the United States Housing Act of 1937 
(42 U.S.C. 1437d) is amended by adding at the end the following 
new subsection: 
"(q) AVAILABILITY OF RECORDS.— 
"(1) IN GENERAL.— 
"(A) PROVISION OF INFORMATION.—Notwithstanding 
any other provision of law, except as provided in subpara-
graph (B), the National Crime Information Center, police 
departments, and other law enforcement agencies shall. 
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 837 
upon request, provide information to public housing agen-
cies regarding the criminal conviction records of adult 
applicants for, or tenants of, public housing for purposes 
of applicant screening, lease enforcement, and eviction. 
"(B) EXCEPTION.—^A law enforcement agency described 
in subparagraph (A) shall provide information under this 
paragraph relating to any criminal conviction of a juvenile 
only to the extent that the release of such information 
is authorized under the law of the applicable State, tribe, 
or locality. 
"(2) OPPORTUNlTi' TO DISPUTE.—Before an adverse action 
is taken with regard to assistance under this title on the 
basis of a criminal record, the public housing agency shall 
provide the tenant or applicant with a copy of the criminal 
record and an opportunity to dispute the accuracy and relevance 
of that record. 
"(3) FEE.—^A public housing agency may be charged a 
reasonable fee for information provided under paragraph (1). 
"(4) RECORDS MANAGEMENT.—Each public housing agency 
shall establish and implement a system of records management 
that ensures that any criminal record received by the public 
housing agency is— 
"(A) maintained confidentially; 
"(B) not misused or improperly disseminated; and 
"(C) destroyed, once the purpose for which the record 
was requested has been accomplished. 
"(5) DEFINITION.—For purposes of this subsection, the term 
'adult' means a person who is 18 years of age or older, or 
who has been convicted of a crime as an adult under any 
Federal, State, or tribal law.". 
(c) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG-RELATED 
ACTIVITY.—Section 6 of the United States Housing Act of 1937 
is amended by adding after subsection (q) (as added by subsection 
(b) of this section) the following new subsection: 
"(r) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG-RELATED 
ACTIVITY.—^Any tenant evicted from housing assisted under this 
title by reason of drug-related criminal activity (as that term is 
defined in section 8(f)) shall not be eligible for housing assistance 
under this title during the 3-year period beginning on the date 
of such eviction, unless the evicted tenant successfully completes 
a rehabilitation program approved by the public housing agency 
(which shall include a waiver of this subsection if the circumstances 
leading to eviction no longer exist).". 
(d) 
INELIGIBILITY OF ILLEGAL DRUG USERS AND ALCOHOL 
ABUSERS FOR ASSISTED HOUSING.—Section 16 of the United States 
Housing Act of 1937 (42 U.S.C. 1437n) is amended— 
(1) in the section heading by striking "INCOME"; and 
(2) by adding at the end the following new subsection: 
"(e) 
INELIGIBILITY OF ILLEGAL DRUG USERS AND ALCOHOL 
ABUSERS.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, a public housing agency shall establish standards for occu-
pancy in public housing dwelling units and assistance under 
section 8— 
"(A) that prohibit occupancy in any public housing 
dwelling unit by, and assistance under section 8 for, any 
person— 
Privacy. 
42 use 1437d. 
110 STAT. 838 
PUBLIC LAW 104-120—MAR. 28, 1996 
"(i) who the public housing agency determines is 
illegally using a controlled substance; or 
"(ii) if the public housing agency determines that 
it has reasonable cause to believe that such person's 
illegal use (or pattern of illegal use) of a controlled 
substance, or abuse (or pattern of abuse) of alcohol, 
may interfere with the health, safety, or right to peace-
ful enjoyment of the premises by other residents of 
the project; and 
"(B) that allow the public housing agency to terminate 
the tenancy in any public housing unit of, and the assist-
ance under section 8 for, any person— 
"(i) who the public housing agency determines is 
illegally using a controlled substance; or 
"(ii) whose illegal use of a controlled substance, 
or whose abuse of alcohol, is determined by the public 
housing agency to interfere with the health, safety, 
or right to peaceful enjoyment of the premises by other 
residents of the project. 
"(2) CONSIDERATION OF REHABILITATION.—In determining 
whether, pursuant to paragraph (1), to deny occupancy or 
assistance to any person based on a pattern of use of a con-
trolled substance or a pattern of abuse of alcohol, a public 
• 
housing agency may consider whether such person— 
"(A) has successfully completed a supervised drug or 
alcohol rehabilitation program (as applicable) and is no 
longer engaging in the illegal use of a controlled substance 
or abuse of alcohol (as applicable); 
"(B) has otherwise been rehabilitated successfully and 
is no longer engaging in the illegal use of a controlled 
substance or abuse of alcohol (as applicable); or 
"(C) is participating in a supervised drug or alcohol 
rehabilitation program (as applicable) and is no longer 
engaging in the illegal use of a controlled substance or 
abuse of alcohol (as applicable). 
"(3) INAPPLICABILITY TO INDIAN HOUSING.—This subsection 
does not apply to any dwelling unit assisted by an Indian 
housing authority.". 
SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND DISABLED 
FAMILIES. 
(a) AUTHORITY FOR DESIGNATION.—Section 7 of the United 
States Housing Act of 1937 (42 U.S.C. 1437e) is amended to read 
as follows: 
"DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES 
"SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING.— 
"(1) IN GENERAL.—Subject only to provisions of this section 
and notwithstanding any other provision of law, a public hous-
ing agency for which a plan under subsection (d) is in effect 
may provide public housing projects (or portions of projects) 
designated for occupancy by (A) only elderly families, (B) only 
disabled families, or (C) elderly and disabled families. 
"(2) PRIORITY FOR OCCUPANCY.—In determining priority for 
admission to public housing projects (or portions of projects) 
that are designated for occupancy as provided in paragraph 
(1), the public housing agency may make units in such projects 
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 839 
(or portions) available only to the types of families for whom 
the project is designated. 
"(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.—If a public 
housing agency determines that there are insufficient numbers 
of elderly families to fill all the units in a project (or portion 
of a project) designated under paragraph (1) for occupancy 
by only elderly families, the agency may provide that near-
elderly families may occupy dwelling units in the project (or 
portion). 
"(b) STANDARDS REGARDING EVICTIONS.—Except as provided 
in section 16(e)(1)(B), any tenant who is lawfully residing in a 
dwelling unit in a public housing project may not be evicted or 
otherwise required to vacate such unit because of the designation 
of the project (or portion of a project) pursuant to this section 
or because of any action taken by the Secretary or any public 
housing agency pursuant to this section. 
"(c) RELOCATION ASSISTANCE.—^A public housing agency that 
designates any existing project or building, or portion thereof, for 
occupancy as provided under subsection (a)(1) shall provide, to 
each person and family who agrees to be relocated in connection 
with such designation— 
"(1) notice of the designation and an explanation of avail- Notice. 
able relocation benefits, as soon as is practicable for the agency 
and the person or family; 
"(2) access to comparable housing (including appropriate 
services and design features), which may include tenant-based 
rental assistance under section 8, at a rental rate paid by 
the tenant that is comparable to that applicable to the unit 
from which the person or family has vacated; and 
"(3) pa)rment of actual, reasonable moving expenses. 
"(d) REQUIRED PLAN.—^A plan under this subsection for des-
ignating a project (or portion of a project) for occupancy under 
subsection (a)(1) is a plan, prepared by the public housing agency 
for the project and submitted to the Secretary, that— 
"(1) establishes that the designation of the project is nec-
essary— 
"(A) to achieve the housing goals for the jurisdiction 
under the comprehensive housing affordability strategy 
under section 105 of the Cranston-Gonzalez National 
Affordable Housing Act; and 
"(B) to meet the housing needs of the low-income popu-
lation of the jurisdiction; and 
"(2) includes a description of— 
"(A) the project (or portion of a project) to be des-
ignated; 
"(B) the types of tenants for which the project is to 
be designated; 
"(C) any supportive services to be provided to tenants 
of the designated project (or portion); 
"(D) how the design and related facilities (as such 
term is defined in section 202(d)(8) of the Housing Act 
of 1959) of the project accommodate the special environ-
mental needs of the intended occupants; and 
"(E) any plans to secure additional resources or housing 
assistance to provide assistance to families that may have 
been housed if occupancy in the project were not restricted 
pursuant to this section. 
110 STAT. 840 
PUBLIC LAW 104-120—MAR. 28, 1996 
For purposes of this subsection, the term 'supportive services' means 
services designed to meet the special needs of residents. 
"(e) REVIEW OF PLANS.— 
"(1) REVIEW AND NOTIFICATION.—The Secretary shall con-
duct a limited review of each plan under subsection (d) that 
is submitted to the Secretary to ensure that the plan is complete 
and complies with the requirements of subsection (d). The 
Secretary shall notify each public housing agency submitting 
a plan whether the plan complies with such requirements not 
later than 60 days after receiving the plan. If the Secretary 
does not notify the public housing agency, as required under 
this paragraph or paragraph (2), the plan shall be considered, 
for purposes of this section, to comply with the requirements 
under subsection (d) and the Secretary shall be considered 
to have notified the agency of such compliance upon the expira-
tion of such 60-day period. 
"(2) NOTICE OF REASONS FOR DETERMINATION OF NON-
COMPLIANCE.—If the Secretary determines that a plan, as 
submitted, does not comply with the requirements under sub-
section (d), the Secretary shall specify in the notice under 
paragraph (1) the reasons for the noncompliance and any modi-
fications necessary for the plan to meet such requirements. 
"(3) STANDARDS FOR DETERMINATION OF NONCOMPLIANCE.— 
The Secretary may determine that a plan does not comply 
with the requirements under subsection (d) only if— 
"(A) the plan is incomplete in significant matters 
required under such subsection; or 
"(B) there is evidence available to the Secretary that 
challenges, in a substantial manner, any information pro-
vided in the plan. 
"(4) TREATMENT OF EXISTING PLANS.—^Notwithstanding any 
other provision of this section, a public housing agency shall 
be considered to have submitted a plan under this subsection 
if the agency has submitted to the Secretary an application 
and allocation plan under this section (as in effect before the 
date of the enactment of the Housing Opportunity Program 
Extension Act of 1996) that have not been approved or dis-
approved before such date of enactment. 
"(f) EFFECTIVENESS.— 
"(1) 5-YEAR EFFECTIVENESS OF ORIGINAL PLAN.—^A plan 
under subsection (d) shall be in effect for purposes of this 
section during the 5-year period that begins upon notification 
under subsection (e)(1) of the public housing agency that the 
plan complies with the requirements under subsection (d). 
"(2) RENEWAL OF PLAN.—^Upon the expiration of the 5-
year period under paragraph (1) or any 2-year period under 
this paragraph, an agency may extend the effectiveness of 
the designation and plan for an additional 2-year period (that 
begins upon such expiration) by submitting to the Secretary 
any information needed to update the plan. The Secretary 
may not limit the number of times a public housing agency 
extends the effectiveness of a designation and plan under this 
paragraph. 
"(3) TRANSITION PROVISION.—Any application and allocation 
plan approved under this section (as in effect before the date 
of the enactment of the Housing Opportunity Program Exten-
sion Act of 1996) before such date of enactment shall be consid-
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 841 
ered to be a plan under subsection (d) that is in effect for 
purposes of this section for the 5-year period beginning upon 
such approval. 
"(g) INAPPLICABILITY OF UNIFORM RELOCATION ASSISTANCE AND 
REAL PROPERTY ACQUISITIONS POLICY ACT OF 1970.—No tenant 
of a public housing project shall be considered to be displaced 
for purposes of the Uniform Relocation Assistance and Real Property 
Acquisitions Policy Act of 1970 because of the designation of any 
existing project or building, or portion thereof, for occupancy as 
provided under subsection (a) of this section. 
"(h) INAPPLICABILITY TO INDIAN HOUSING.—The provisions of 
this section shall not apply with respect to low-income housing 
developed or operated pursuant to a contract between the Secretary 
and an Indian housing authority.". 
(b) AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION 
OF ALLOCATION PLANS.—There are authorized to be appropriated 
for fiscal year 1996 such sums as may be necessary for rental 
subsidy contracts under the existing housing certificate and housing 
voucher programs under section 8 of the United States Housing 
Act of 1937 for public housing agencies to implement allocations 
plans for designated housing under section 7 of such Act that 
are approved by the Secretary of Housing and Urban Development. 
SEC. 11. ASSISTANCE FOR HABITAT FOR HUMANITY AND OTHER SELF- 
42 USC 12805 
HELP HOUSING PROVIDERS. 
note 
(a) GRANT AUTHORITY.—The Secretary of Housing and Urban 
Development may, to the extent amounts are available to carry 
out this section and the requirements of this section are met, 
make grants for use in accordance with this section to— 
(1) Habitat for Humanity International, whose organiza-
tional headquarters are located in Americus, Georgia; and 
(2) other national or regional organizations or consortia 
that have experience in providing or facilitating self-help hous-
ing homeownership opportunities. 
(b) GOALS AND ACCOUNTABILITY.—In making grants under this 
section, the Secretary shall take such actions as may be necessary 
to ensure that— 
(1) assistance provided under this section is used to facili-
tate and encourage innovative homeownership opportunities 
through the provision of self-help housing, under which the 
homeowner contributes a significant amount of sweat equity 
toward the construction of the new dwelling; 
(2) assistance provided under this section for land acquisi-
tion and infrastructure development results in the development 
of not less than 4,000 new dwellings; 
(3) the dwellings constructed in connection with assistance 
provided under this section are quality dwellings that comply 
with local building and safety codes and standards and are 
available at prices below the prevailing market prices; 
(4) the provision of assistance under this section establishes 
and fosters a partnership between the Federal Government 
and Habitat for Humanity International, its affiliates, and other 
organizations and consortia, resulting in efficient development 
of affordable housing with minimal governmental intervention, 
limited governmental regulation, and significant involvement 
by private entities; 
29-194 O - 96 - 28 : QL 3 Part 1 
110 STAT. 842 
PUBLIC LAW 104-120—MAR. 28, 1996 
(5) activities to develop housing assisted pursuant to this 
section 
involve 
community 
participation 
similar to the 
homeownership program carried out by Habitat for Humanity 
International, in which volunteers assist in the construction 
of dwellings; and 
(6) dwellings are developed in connection with assistance 
under this section on a geographically diverse basis, which 
includes areas having high housing costs, rural areas, and 
areas underserved by other homeownership opportunities that 
are populated by low-income families unable to otherwise afford 
housing. 
Notification. 
If, at any time, the Secretary determines that the goals under 
this subsection cannot be met by providing assistance in accordance 
with the terms of this section, the Secretary shall immediately 
notify the applicable Committees in writing of such determination 
and any proposed changes for such goals or this section. 
(c) ALLOCATION.—Of any amounts available for grants under 
this section— 
(1) 62.5 percent shall be used for a grant to the organization 
specified in subsection (a)(1); and 
(2) 37.5 percent shall be used for grants to organizations 
and consortia under subsection (a)(2). 
(d) USE.— 
(1) PURPOSE.—^Amounts from grants made under this sec-
tion, including any recaptured amounts, shall be used only 
for eligible expenses in connection with developing new decent, 
safe, and sanitary nonluxury dwellings in the United States 
for families and persons who otherwise would be unable to 
afford to purchase a dwelling. 
(2) ELIGIBLE EXPENSES.—For purposes of paragraph (1), 
the term "eligible expenses" means costs only for the following 
activities: 
(A) LAND ACQUISITION.—Acquiring land 
(including 
financing and closing costs). 
(B) 
INFRASTRUCTURE 
IMPROVEMENT.—Installing, 
extending, 
constructing, 
rehabilitating, 
or 
otherwise 
improving utilities and other infrastructure. 
Such term does not include any costs for the rehabilitation, 
improvement, or construction of dwellings. 
(e) ESTABLISHMENT OF GRANT FUND.— 
(1) IN GENERAL.—^Any amounts from any grant made under 
this section shall be deposited by the grantee organization 
or consortium in a fund that is established by such organization 
or consortium for such amounts, administered by such organiza-
tion or consortium, and available for use only for the purposes 
under subsection (d). Any interest, fees, or other earnings of 
the fund shall be deposited in the fund and shall be considered 
grant amounts for purposes of this section. 
(2) ASSISTANCE TO HABITAT FOR HUMANITY AFFILIATES.— 
Habitat for Humanity International may use amounts in the 
fund established for such organization pursuant to paragraph 
(1) for the purposes under subsection (d) by providing assistance 
from the fund to local affiliates of such organization. 
(f) REQUIREMENTS FOR ASSISTANCE TO OTHER ORGANIZATIONS.— 
The Secretary may make a grant to an organization or consortium 
under subsection (a)(2) only pursuant to— 
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 843 
(1) an expression of interest by such organization or consor-
tia to the Secretary for a grant for such purposes; 
(2) a determination by the Secretary that the organization 
or consortia has the capabiUty and has obtained financial 
commitments (or has the capacity to obtain financial commit-
ments) necessary to— 
(A) develop not less than 30 dwellings in connection 
with the grant amounts; and 
(B) otherwise comply with a grant agreement under 
subsection (i); and 
(3) a grant agreement entered into under subsection (i). 
(g) TREATMENT OF UNUSED AMOUNTS.—^Upon the expiration 
of the 6-month period beginning upon the Secretary first providing 
notice of the availability of amounts for grants under subsection 
(a)(2), the Secretary shall determine whether the amount remaining 
from the aggregate amount reserved under subsection (c)(2) exceeds 
the amount needed to provide funding in connection with any 
expressions of interest under subsection (f)(1) made by such date 
that are likely to result in grant agreements under subsection 
(i). If the Secretary determines that such excess amounts remain, 
the Secretary shall provide the excess amounts to Habitat for 
Humanity International by making a grant to such organization 
in accordance with this section. 
(h) GEOGRAPHICAL DIVERSITY.—In using grant amounts pro-
vided under subsection (a)(1), Habitat for Humanity International 
shall ensure that the amounts are used in a manner that results 
in national geographic diversity among housing developed using 
such amounts. In making grants under subsection (a)(2), the Sec-
retary shall ensure that grants are provided and grant amounts 
are used in a manner that results in national geographic diversity 
among housing developed using grant amounts under this section. 
(i) GRANT AGREEMENT.—^A grant under this section shall be 
made only pursuant to a grant agreement entered into by the 
Secretary and the organization or consortia receiving the grant, 
which shall— 
(1) require such organization or consortia to use grant 
amounts only as provided in this section; 
(2) provide for the organization or consortia to develop 
a specific and reasonable number of dwellings using the grant 
amounts, which number shall be established taking into consid-
eration costs and economic conditions in the areas in which 
the dwellings will be developed, but in no case shall be less 
than 30; 
(3) require the organization or consortia to use the grant 
amounts in a manner that leverages other sources of funding 
(other than grants under this section), including private or 
public funds, in developing the dwellings; 
(4) require the organization or consortia to comply with 
the other provisions of this section; 
(5) provide that if the organization or consortia has not 
used any grant amounts within 24 months after such amounts 
are first disbursed to the organization or consortia, the Sec-
retary shall recapture such unused amounts; and 
(6) contain such other terms as the Secretary may require 
to provide for compliance with subsection (b) and the require-
ments of this section. 
110 STAT. 844 
PUBLIC LAW 104-120—MAR. 28, 1996 
0) FULFILLMENT OF GRANT AGREEMENT.—If the Secretary deter-
mines that an organization or consortia awarded a grant under 
this section has not, within 24 months after grant amounts are 
first made available to the organization or consortia, substantially 
fulfilled the obligations under the grant agreement, including devel-
opment of the appropriate number of dwellings under the agree-
ment, the Secretary shall use any such undisbursed amounts 
remaining from such grant for other grants in accordance with 
this section. 
(k) RECORDS AND AUDITS.—During the period beginning upon 
the making of a grant under this section and ending upon close-
out of the grant under subsection (1)— 
(1) the organization awarded the grant under subsection 
(a)(1) or (a)(2) shall keep such records and adopt such adminis-
trative practices as the Secretary may require to ensure compli-
ance with the provisions of this section and the grant agree-
ment; and 
(2) the Secretary and the Comptroller General of the United 
States, and any of their duly authorized representatives, shall 
have access for the purpose of audit and examination to any 
books, documents, papers, and records of the grantee organiza-
tion or consortia and its affiliates that are pertinent to the 
grant made under this section. 
(1) CLOSE-OUT.—The Secretary shall close out a grant made 
under this section upon determining that the aggregate amount 
of any assistance provided from the fund established under sub-
section (e)(1) by the grantee organization or consortium exceeds 
the amount of the grant. For purposes of this paragraph, any 
interest, fees, and other earnings of the fund shall be excluded 
from the amount of the grant. 
(m) ENVIRONMENTAL REVIEW.—^A grant under this section shall 
be considered to be funds for a special project for purposes of 
section 305(c) of the Multifamily Housing Property Disposition 
Reform Act of 1994. 
(n) REPORT TO CONGRESS.—Not later than 90 days after close-
out of all grants under this section is completed, the Secretary 
shall submit a report to the applicable Committees describing the 
grants made under this section, the grantees, the housing developed 
in connection with the grant amounts, and the purposes for which 
the grant amounts were used. 
(o) DEFINITIONS.—For purposes of this section, the following 
definitions shall apply: 
(1) 
APPLICABLE 
COMMITTEES.—The 
term 
"applicable 
Committees" means the Committee on Banking and Financial 
Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate. 
(2) SECRETARY.—^The term "Secretary" means the Secretary 
of Housing and Urban Development. 
(3) UNITED STATES.—The term "United States" includes 
the States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, Guam, the Virgin Islands, American 
Samoa, and any other territory or possession of the United 
States. 
Federal Register, 
(p) REGULATIONS.—The Secretary shall issue any final regula-
publication. 
tions necessary to carry out this section not later than 30 days 
after the date of the enactment of this Act. The regulations shall 
PUBLIC LAW 104-120—MAR. 28, 1996 
110 STAT. 845 
take effect upon issuance and may not exceed, in length, 5 full 
pages in the Federal Register. 
SEC. 12. FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL 
CITIES IN SCHOOLS COMMUNITY DEVELOPMENT PROGRAM, 
AND CAPACITS' BUILDING THROUGH NATIONAL COMMU-
NITY DEVELOPMENT INITIATIVE. 
(a) AUTHORITY TO USE ASSISTED HOUSING AMOUNTS.—TO 
the 
extent and for the purposes specified in subsection (b), the Secretary 
of Housing and Urban Development may use amounts in the 
account of the Department of Housing and Urban Development 
known as the Annual Contributions for Assisted Housing account, 
but only such amounts which— 
(1) have been appropriated for a fiscal year that occurs 
before the fiscal year for which the Secretary uses the amounts; 
and 
(2) have been obligated before becoming available for use 
under this section. 
(b) FISCAL YEAR 1996.—Of the amounts described in subsection 
(a), $60,000,000 shall be available to the Secretary of Housing 
and Urban Development for fiscal year 1996 in the following 
amounts for the following purposes: 
(1) SELF-HELP HOUSING ASSISTANCE.—$40,000,000 for carry-
ing out section 11 of this Act. 
(2) NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOPMENT 
PROGRAM.—$10,000,000 for carrying out section 930 of the 
Housing and Community Development Act of 1992 (Public Law 
102-550; 106 Stat. 3887). 
(3) 
CAPACITY BUILDING THROUGH NATIONAL COMMUNITY 
DEVELOPMENT INITIATIVE.—$10,000,000 for carrying out section 
4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note). 
SEC. 13. APPLICABILITY AND IMPLEMENTATION. 
42 USC 1437d 
(a) APPLICABILITY.—This Act and the amendments made by "° ^ 
this Act shall be construed to have become effective on October 
1, 1995. 
110 STAT. 846 
PUBLIC LAW 104-120—MAR. 28, 1996 
(b) IMPLEMENTATION.—^The amendments made by sections 9 
and 10 shall apply as provided in subsection (a) of this section, 
notwithstanding the effective date of any regulations issued by 
the Secretary of Housing and Urban Development to implement 
such amendments or any failure by the Secretary to issue any 
such regulations. 
Approved March 28, 1996. 
LEGISLATIVE HISTORY—S. 1494: 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
Jan. 24, considered and passed Senate. 
Feb. 27, considered and passed House, amended. 
Mar. 12, Senate concurred in House amendment.