American Dream Downpayment Act
PL 108-186 (S.811), enacted 12/16/2003

117 STAT. 2685
PUBLIC LAW 108–186—DEC. 16, 2003
Public Law 108–186
108th Congress
An Act
To support certain housing proposals in the fiscal year 2003 budget for the Federal
Government, including the downpayment assistance initiative under the HOME
Investment Partnership Act, 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. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I—DOWNPAYMENT ASSISTANCE
Sec. 101. Short title.
Sec. 102. Downpayment assistance initiative.
TITLE II—INTERGENERATIONAL HOUSING ASSISTANCE
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Demonstration program for elderly housing for intergenerational families.
Sec. 204. Training for HUD personnel regarding grandparent-headed and relative-
headed families issues.
Sec. 205. Study of housing needs of grandparent-headed and relative-headed fami-
lies.
TITLE III—ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN
LIMIT ADJUSTMENTS
Sec. 301. Hybrid arms.
Sec. 302. FHA multifamily loan limit adjustments.
TITLE IV—HOPE VI PROGRAM REAUTHORIZATION
Sec. 401. Short title.
Sec. 402. Hope VI program reauthorization.
Sec. 403. Hope VI grants for assisting affordable housing through main street
projects.
TITLE V—COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 501. Funding for insular areas.
TITLE I—DOWNPAYMENT ASSISTANCE
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘American Dream Downpayment
Act’’.
SEC. 102. DOWNPAYMENT ASSISTANCE INITIATIVE.
Subtitle E of title II of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12821) is amended to read as follows:
42 USC 12701
note.
American Dream
Downpayment
Act.
Dec. 16, 2003
[S. 811]
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117 STAT. 2686
PUBLIC LAW 108–186—DEC. 16, 2003
‘‘Subtitle E—Other Assistance
‘‘SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) DOWNPAYMENT ASSISTANCE.—The term ‘‘downpayment
assistance’’ means assistance to help a family acquire a prin-
cipal residence.
‘‘(2) HOME REPAIRS.—The term ‘‘home repairs’’ means cap-
ital improvements or repairs that—
‘‘(A) are identified in an appraisal or home inspection
completed in conjunction with a home purchase; or
‘‘(B) are completed within 1 year of the purchase of
a home, and are necessary to bring the housing into compli-
ance with health and safety housing codes of the unit
of general local government in which the housing is located,
including the remediation of lead paint or other home
health hazards.
‘‘(3) PARTICIPATING JURISDICTION.—The term ‘‘participating
jurisdiction’’ means a State or unit of general local government
designated under section 216.
‘‘(4) STATE.—The term ‘‘State’’ means any State of the
United States and the District of Columbia.
‘‘(b) GRANT AUTHORITY.—The Secretary may award grants to
participating jurisdictions to assist low-income families to achieve
homeownership, in accordance with this section.
‘‘(c) ELIGIBLE ACTIVITIES.—
‘‘(1) IN GENERAL.—
‘‘(A) DOWNPAYMENT ASSISTANCE.—Subject to subpara-
graph (B), grants awarded under this section may be used
only for downpayment assistance toward the purchase of
single family housing (including 1 to 4 unit family dwelling
units, condominium units, cooperative units, and manufac-
tured housing units which are located on land which is
owned by the manufactured housing unit owner, owned
as a cooperative, or is subject to a leasehold interest with
a term equal to at least the term of the mortgage financing
on the unit, and manufactured housing lots) by low-income
families who are first-time home-buyers.
‘‘(B) HOME REPAIRS.—Not more than 20 percent of the
grant funds provided under subsection (d) to a participating
jurisdiction may be used to provide assistance to low-
income, first-time home-buyers for home repairs.
‘‘(2) LIMITATIONS.—
‘‘(A) AMOUNT OF ASSISTANCE.—The amount of assist-
ance provided to any low-income families under paragraph
(1) shall not exceed the greater of—
‘‘(i) 6 percent of the purchase price of a single
family housing unit; or
‘‘(ii) $10,000.
‘‘(B) PARTICIPATION.—A participating jurisdiction may
not use any amount of a grant awarded under this section
to provide funding to an entity or organization that provides
downpayment assistance if the activities of that entity or
organization are financed in whole or in part, directly or
indirectly, by contributions, service fees, or other payments
from the sellers of housing.
42 USC 12821.
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117 STAT. 2687
PUBLIC LAW 108–186—DEC. 16, 2003
‘‘(d) FORMULA ALLOCATION.—
‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall
allocate any amounts made available for assistance under this
section to each State that is a participating jurisdiction in
an amount equal to a percentage of the total allocation that
is equal to the percentage of the national total of low-income
households residing in rental housing in the State, as deter-
mined on the basis of the most recent census data compiled
by the Bureau of the Census.
‘‘(2) PARTICIPATING JURISDICTIONS OTHER THAN STATES.—
‘‘(A) IN
GENERAL.—Subject to subparagraph (B), for
each fiscal year, of the amount allocated to each State
under paragraph (1), the Secretary shall further allocate
from such amount to each participating jurisdiction located
within such State an amount equal to the percentage of
the allocation made to the State under paragraph (1) that
is equal to the percentage of the State-wide total of low-
income households residing in rental housing in such
participating jurisdiction, as determined on the basis of
the most recent census data compiled by the Bureau of
the Census.
‘‘(B) LIMITATION.—
‘‘(i) IN GENERAL.—Direct allocations made under
subparagraph (A) shall be made to a local participating
jurisdiction only if—
‘‘(I) the participating jurisdiction has a total
population of 150,000 individuals or more, as
determined on the basis of the most recent census
data compiled by the Bureau of the Census; or
‘‘(II) 
the 
participating 
jurisdiction 
would
receive an allocation of $50,000 or more.
‘‘(ii) REVERSION.—Any allocation that would have
otherwise been made to a participating jurisdiction
that does not meet the requirements of clause (i) shall
revert back to the State in which the participating
jurisdiction is located.
‘‘(e) REALLOCATION.—If any amounts allocated to a participating
jurisdiction under this section become available for reallocation,
the amounts shall be reallocated to other participating jurisdictions
in accordance with subsection (d).
‘‘(f) APPLICABILITY OF OTHER PROVISIONS.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
section, grants made under this section shall not be subject
to the provisions of this title.
‘‘(2) APPLICABLE PROVISIONS.—In addition to the require-
ments of this section, grants made under this section shall
be subject to the provisions of title I, sections 215(b), 218,
219, 221, 223, 224, and 226(a) of subtitle A of this title, and
subtitle F of this title.
‘‘(3) REFERENCES.—In applying the requirements of subtitle
A referred to in paragraph (2)—
‘‘(A) any references to funds under subtitle A shall
be considered to refer to amounts made available for assist-
ance under this section; and
‘‘(B) any references to funds allocated or reallocated
under section 217 or 217(d) shall be considered to refer
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117 STAT. 2688
PUBLIC LAW 108–186—DEC. 16, 2003
to amounts allocated or reallocated under subsection (d)
or (e) of this section, respectively.
‘‘(g) HOUSING STRATEGY.—To be eligible to receive a grant under
this section in any fiscal year, a participating jurisdiction shall
include in its comprehensive housing affordability strategy devel-
oped under section 105 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12705) for such fiscal year—
‘‘(1) a description of the anticipated use of any grant
received under this section;
‘‘(2) a plan for conducting targeted outreach to residents
and tenants of public housing, trailer parks, and manufactured
housing, and to other families assisted by public housing agen-
cies, for the purpose of ensuring that grant amounts provided
under this section to a participating jurisdiction are used for
downpayment assistance for such residents, tenants, and fami-
lies; and
‘‘(3) a description of the actions to be taken to ensure
the suitability of families receiving downpayment assistance
under this section to undertake and maintain homeownership.
‘‘(h) REPORT.—Not later than June 30, 2006, the Comptroller
General of the United States shall submit a report containing
a State-by-State analysis of the impact of grants awarded under
this section to—
‘‘(1) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
‘‘(2) the Committee on Financial Services of the House
of Representatives.
‘‘(i) SUNSET.—The Secretary shall have no authority to make
grants under this Act after December 31, 2007.
‘‘(j) RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.—
The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (84 Stat. 1894) shall not apply to downpayment
assistance under this section.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $200,000,000 for each
of fiscal years 2004 through 2007.’’.
TITLE II—INTERGENERATIONAL
HOUSING ASSISTANCE
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Living Equitably: Grandparents
Aiding Children and Youth Act of 2003’’ or the ‘‘LEGACY Act
of 2003’’.
SEC. 202. DEFINITIONS.
In this title:
(1) CHILD.—The term ‘‘child’’ means an individual who—
(A) is not attending school and is not more than 18
years of age; or
(B) is attending school and is not more than 19 years
of age.
(2) COVERED FAMILY.—The term ‘‘covered family’’ means
a family that—
(A) includes a child; and
(B) has a head of household who is—
12 USC 1701q
note.
12 USC 1701q
note.
Living Equitably:
Grandparents
Aiding Children
and Youth Act of
2003.
Deadline.
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117 STAT. 2689
PUBLIC LAW 108–186—DEC. 16, 2003
(i) a grandparent of the child who is raising the
child; or
(ii) a relative of the child who is raising the child.
(3) ELDERLY PERSON.—The term ‘‘elderly person’’ has the
same meaning as in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)).
(4) GRANDPARENT.—
(A) IN GENERAL.—The term ‘‘grandparent’’ means, with
respect to a child, an individual who is a grandparent
or stepgrandparent of the child by blood or marriage,
regardless of the age of such individual.
(B) CASE OF ADOPTION.—In the case of a child who
was adopted, the term includes an individual who, by blood
or marriage, is a grandparent or stepgrandparent of the
child as adopted.
(5) INTERGENERATIONAL DWELLING UNIT.—The term ‘‘inter-
generational dwelling unit’’ means a qualified dwelling unit
that is reserved for occupancy only by an intergenerational
family.
(6) INTERGENERATIONAL FAMILY.—The term ‘‘intergenera-
tional family’’ means a covered family that has a head of
household who is an elderly person.
(7) PRIVATE NONPROFIT ORGANIZATION.—The term ‘‘private
nonprofit organization’’ has the same meaning as in section
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
(8) QUALIFIED
DWELLING
UNIT.—The term ‘‘qualified
dwelling unit’’ means a dwelling unit that—
(A) has not fewer than 2 separate bedrooms;
(B) is equipped with design features appropriate to
meet the special physical needs of elderly persons, as
needed; and
(C) is equipped with design features appropriate to
meet the special physical needs of young children, as
needed.
(9) RAISING A CHILD.—The term ‘‘raising a child’’ means,
with respect to an individual, that the individual—
(A) resides with the child; and
(B) is the primary caregiver for the child—
(i) because the biological or adoptive parents of
the child do not reside with the child or are unable
or unwilling to serve as the primary caregiver for the
child; and
(ii) regardless of whether the individual has a legal
relationship to the child (such as guardianship or legal
custody) or is caring for the child informally and has
no such legal relationship with the child.
(10) RELATIVE.—
(A) IN
GENERAL.—The term ‘‘relative’’ means, with
respect to a child, an individual who—
(i) is not a parent of the child by blood or marriage;
and
(ii) is a relative of the child by blood or marriage,
regardless of the age of the individual.
(B) CASE OF ADOPTION.—In the case of a child who
was adopted, the term ‘‘relative’’ includes an individual
who, by blood or marriage, is a relative of the family
who adopted the child.
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117 STAT. 2690
PUBLIC LAW 108–186—DEC. 16, 2003
(11) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Housing and Urban Development.
SEC. 203. DEMONSTRATION PROGRAM FOR ELDERLY HOUSING FOR
INTERGENERATIONAL FAMILIES.
(a) DEMONSTRATION PROGRAM.—The Secretary shall carry out
a demonstration program (referred to in this section as the ‘‘dem-
onstration program’’) to provide assistance for intergenerational
dwelling units for intergenerational families in connection with
the supportive housing program under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q).
(b) INTERGENERATIONAL DWELLING UNITS.—The Secretary shall
provide assistance under this section only to private nonprofit
organizations selected under subsection (d) for use only for
expanding the supply of intergenerational dwelling units, which
units shall be provided—
(1) by designating and retrofitting, for use as intergenera-
tional dwelling units, existing dwelling units that are located
within a project assisted under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q);
(2) through development of buildings or projects comprised
solely of intergenerational dwelling units; or
(3) through the development of an annex or addition to
an existing project assisted under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q), that contains intergenerational
dwelling units, including through the development of elder
cottage housing opportunity units that are small, freestanding,
barrier free, energy efficient, removable dwelling units located
adjacent to a larger project or dwelling.
(c) PROGRAM TERMS.—Assistance provided pursuant to this sec-
tion shall be subject to the provisions of section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q), except that—
(1) notwithstanding subsection (d)(1) of that section 202
or any provision of that section restricting occupancy to elderly
persons, any intergenerational dwelling unit assisted under
the demonstration program may be occupied by an intergenera-
tional family;
(2) subsections (e) and (f) of that section 202 shall not
apply;
(3) in addition to the requirements under subsection (g)
of that section 202, the Secretary shall—
(A) ensure that occupants of intergenerational dwelling
units assisted under the demonstration program are pro-
vided a range of services that are tailored to meet the
needs of elderly persons, children, and intergenerational
families; and
(B) coordinate with the heads of other Federal agencies
as may be appropriate to ensure the provision of such
services; and
(4) the Secretary may waive or alter any other provision
of that section 202 necessary to provide for assistance under
the demonstration program.
(d) SELECTION.—The Secretary shall—
(1) establish application procedures for private nonprofit
organizations to apply for assistance under this section; and
(2) to the extent that amounts are made available pursuant
to subsection (f), select not less than 2 and not more than
Procedures.
12 USC 1701q
note.
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117 STAT. 2691
PUBLIC LAW 108–186—DEC. 16, 2003
4 projects that are assisted under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q) for assistance under this section,
based on the ability of the applicant to develop and operate
intergenerational dwelling units and national geographical
diversity among those projects funded.
(e) REPORT.—Not later than 36 months after the date of enact-
ment of this Act, the Secretary shall submit a report to Congress
that—
(1) describes the demonstration program; and
(2) analyzes the effectiveness of the demonstration pro-
gram.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated $10,000,000 to carry out this section.
(g) SUNSET.—The demonstration program carried out under
this section shall terminate 5 years after the date of enactment
of this Act.
SEC. 204. TRAINING FOR HUD PERSONNEL REGARDING GRAND-
PARENT-HEADED 
AND 
RELATIVE-HEADED 
FAMILIES
ISSUES.
Section 7 of the Department of Housing and Urban Develop-
ment Act (42 U.S.C. 3535) is amended by adding at the end the
following:
‘‘(t) TRAINING REGARDING ISSUES RELATING TO GRANDPARENT-
HEADED
AND RELATIVE-HEADED FAMILIES.—The Secretary shall
ensure that all personnel employed in field offices of the Department
who have responsibilities for administering the housing assistance
program under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) or the supportive housing program under section
202 of the Housing Act of 1959 (12 U.S.C. 1701q), and an appro-
priate number of personnel in the headquarters office of the Depart-
ment who have responsibilities for those programs, have received
adequate training regarding how covered families (as that term
is defined in section 202 of the LEGACY Act of 2003) can be
served by existing affordable housing programs.’’.
SEC. 205. STUDY OF HOUSING NEEDS OF GRANDPARENT-HEADED AND
RELATIVE-HEADED FAMILIES.
(a) IN GENERAL.—The Secretary and the Director of the Bureau
of the Census jointly shall—
(1) conduct a study to determine an estimate of the number
of covered families in the United States and their affordable
housing needs; and
(2) submit a report to Congress regarding the results of
the study conducted under paragraph (1).
(b) REPORT
AND
RECOMMENDATIONS.—The report required
under subsection (a) shall—
(1) be submitted to Congress not later than 12 months
after the date of enactment of this Act; and
(2) include recommendations by the Secretary and the
Director of the Bureau of the Census regarding how the major
assisted housing programs of the Department of Housing and
Urban Development, including the supportive housing for the
elderly program under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q) can be used and, if appropriate, amended
or altered, to meet the affordable housing needs of covered
families.
Deadline.
12 USC 1701q
note.
12 USC 1701q
note.
Deadline.
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117 STAT. 2692
PUBLIC LAW 108–186—DEC. 16, 2003
TITLE III—ADJUSTABLE RATE SINGLE
FAMILY 
MORTGAGES 
AND 
LOAN
LIMIT ADJUSTMENTS
SEC. 301. HYBRID ARMS.
(a) IN GENERAL.—Section 251(d)(1)(C) of the National Housing
Act (12 U.S.C. 1715z–16(d)(1)(C)) is amended by striking ‘‘five’’
and inserting ‘‘3’’.
(b) APPLICABILITY.—The amendment made by subsection (a)
shall apply to mortgages executed on or after the date of the
enactment of this title.
SEC. 302. FHA MULTIFAMILY LOAN LIMIT ADJUSTMENTS.
(a) SHORT TITLE.—This section may be cited as the ‘‘FHA Multi-
family Loan Limit Adjustment Act of 2003’’.
(b) MAXIMUM MORTGAGE AMOUNT LIMIT
FOR MULTIFAMILY
HOUSING IN HIGH-COST AREAS.—Sections 207(c)(3), 213(b)(2)(B)(i),
220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B),
and 234(e)(3)(B) of the National Housing Act (12 U.S.C. 1713(c)(3),
1715e(b)(2)(B)(i), 
1715k(d)(3)(B)(iii)(II), 
1715l(d)(3)(ii)(III),
1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and 1715y(e)(3)(B)) are each
amended—
(1) by striking ‘‘110 percent’’ and inserting ‘‘140 percent’’;
and
(2) by inserting ‘‘, or 170 percent in high cost areas,’’
after ‘‘140 percent’’.
(c) CATCH-UP ADJUSTMENTS TO CERTAIN MAXIMUM MORTGAGE
AMOUNT LIMITS.—
(1) SECTION
207
LIMITS.—Section 207(c)(3)(A) of the
National Housing Act (12 U.S.C. 1713(c)(3)(A)) is amended
by striking ‘‘$11,250’’ and inserting ‘‘$17,460’’.
(2) SECTION
213
LIMITS.—Section 213(b)(2)(A) of the
National Housing Act (12 U.S.C. 1715e(b)(2)(A)) is amended—
(A) by striking ‘‘$38,025’’ and inserting ‘‘$41,207’’;
(B) by striking ‘‘$42,120’’ and inserting ‘‘$47,511’’;
(C) by striking ‘‘$50,310’’ and inserting ‘‘$57,300’’;
(D) by striking ‘‘$62,010’’ and inserting ‘‘$73,343’’;
(E) by striking ‘‘$70,200’’ and inserting ‘‘$81,708’’;
(F) by striking ‘‘$49,140’’ and inserting ‘‘$49,710’’;
(G) by striking ‘‘$60,255’’ and inserting ‘‘$60,446’’;
(H) by striking ‘‘$75,465’’ and inserting ‘‘$78,197’’; and
(I) by striking ‘‘$85,328’’ and inserting ‘‘$85,836’’.
(d) 
REHABILITATION
AND
NEIGHBORHOOD
CONSERVATION
HOUSING MORTGAGE INSURANCE.—Section 220(d)(3)(B)(iii) of the
National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended—
(1) by striking ‘‘with respect to dollar amount limitations
applicable to rehabilitation projects described in subclause (II),’’
and inserting ‘‘; (III)’’; and
(2) by redesignating subclauses (III) and (IV) as subclauses
(IV) and (V), respectively.
FHA Multifamily
Loan Limit
Adjustment Act
of 2003.
12 USC 1701
note.
12 USC 1715z–16
note.
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117 STAT. 2693
PUBLIC LAW 108–186—DEC. 16, 2003
TITLE IV—HOPE VI PROGRAM
REAUTHORIZATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘HOPE VI Program Reauthoriza-
tion and Small Community Mainstreet Rejuvenation and Housing
Act of 2003’’.
SEC. 402. HOPE VI PROGRAM REAUTHORIZATION.
(a) SELECTION CRITERIA.—Section 24(e)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended—
(1) by striking the matter preceding subparagraph (A) and
inserting the following:
‘‘(2) SELECTION
CRITERIA.—The Secretary shall establish
criteria for the award of grants under this section and shall
include among the factors—’’;
(2) in subparagraph (B), by striking ‘‘large-scale’’;
(3) in subparagraph (D)—
(A) by inserting ‘‘and ongoing implementation’’ after
‘‘development’’; and
(B) by inserting ‘‘, except that the Secretary may not
award a grant under this section unless the applicant
has involved affected public housing residents at the begin-
ning and during the planning process for the revitalization
program, prior to submission of an application’’ before the
semicolon at the end;
(4) in subparagraph (H), by striking ‘‘and’’ at the end;
(5) by redesignating subparagraph (I) as subparagraph (L);
and
(6) by inserting after subparagraph (H) the following:
‘‘(I) the extent to which the plan minimizes permanent
displacement of current residents of the public housing
site who wish to remain in or return to the revitalized
community and provides for community and supportive
services to residents prior to any relocation;
‘‘(J) the extent to which the plan sustains or creates
more project-based housing units available to persons
eligible for public housing in markets where the plan shows
there is demand for the maintenance or creation of such
units;
‘‘(K) the extent to which the plan gives to existing
residents priority for occupancy in dwelling units which
are public housing dwelling units, or for residents who
can afford to live in other units, priority for those units
in the revitalized community; and’’.
(b) DEFINITION OF SEVERELY DISTRESSED PUBLIC HOUSING.—
Section 24(j)(2)(A)(iii) of the United States Housing Act of 1937
(42 U.S.C. 1437v(j)(2)(A)(iii)) is amended—
(1) in subclause (I), by striking ‘‘or’’ at the end;
(2) in subclause (II), by inserting ‘‘or’’ after the semicolon
at the end; and
(3) by inserting at the end the following:
‘‘(III) is lacking in sufficient appropriate transpor-
tation, supportive services, economic opportunity,
schools, civic and religious institutions, and public serv-
ices, resulting in severe social distress in the project;’’.
42 USC 1437
note.
Hope VI Program
Reauthorization
and Small
Community
Mainstreet
Rejuvenation and
Housing Act of
2003.
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117 STAT. 2694
PUBLIC LAW 108–186—DEC. 16, 2003
(c) STUDY
OF
ELDERLY
AND
DISABLED
PUBLIC
HOUSING
NEEDS.—Not later than 18 months after the date of enactment
of this Act, the Comptroller General of the United States shall
submit a report to Congress regarding the extent of severely dis-
tressed elderly and non-elderly disabled public housing, and rec-
ommendations for improving that housing through the HOPE VI
program or other means, taking into account the special needs
of the residents.
(d) AUTHORIZATION OF APPROPRIATIONS.—Paragraph (1) of sec-
tion 24(m) of the United States Housing Act of 1937 (42 U.S.C.
1437v(m)(1)) is amended by striking ‘‘, 2001, and 2002’’ and
inserting ‘‘through 2006’’.
(e) EXTENSION OF PROGRAM.—Section 24(n) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(n)) is amended by striking
‘‘September 30, 2004’’ and inserting ‘‘September 30, 2006’’.
SEC. 403. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING
THROUGH MAIN STREET PROJECTS.
(a) PURPOSES.—Section 24(a) of the United States Housing
Act of 1937 (42 U.S.C. 1437v(a)) is amended by adding after and
below paragraph (4) the following:
‘‘It is also the purpose of this section to provide assistance to
smaller communities for the purpose of facilitating the development
of affordable housing for low-income families that is undertaken
in connection with a main street revitalization or redevelopment
project in such communities.’’.
(b) GRANTS FOR ASSISTING AFFORDABLE HOUSING DEVELOPED
THROUGH MAIN STREET PROJECTS IN SMALLER COMMUNITIES.—Sec-
tion 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v)
is amended—
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following new
subsection:
‘‘(n) GRANTS FOR ASSISTING AFFORDABLE HOUSING DEVELOPED
THROUGH MAIN STREET PROJECTS IN SMALLER COMMUNITIES.—
‘‘(1) AUTHORITY AND USE OF GRANT AMOUNTS.—The Sec-
retary may make grants under this subsection to smaller
communities. Such grant amounts shall be used by smaller
communities only to provide assistance to carry out eligible
affordable housing activities under paragraph (4) in connection
with an eligible project under paragraph (2).
‘‘(2) ELIGIBLE PROJECT.—For purposes of this subsection,
the term ‘eligible project’ means a project that—
‘‘(A) the Secretary determines, under the criteria estab-
lished pursuant to paragraph (3), is a main street project;
‘‘(B) is carried out within the jurisdiction of a smaller
community receiving the grant; and
‘‘(C) involves the development of affordable housing
that is located in the commercial area that is the subject
of the project.
‘‘(3) MAIN STREET PROJECTS.—The Secretary shall establish
requirements for a project to be considered a main street project
for purposes of this section, which shall require that the
project—
‘‘(A) has as its purpose the revitalization or redevelop-
ment of a historic or traditional commercial area;
Deadline.
Reports.
42 USC 1437v
note.
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‘‘(B) involves investment, or other participation, by the
government for, and private entities in, the community
in which the project is carried out; and
‘‘(C) complies with such historic preservation guidelines
or principles as the Secretary shall identify to preserve
significant historic or traditional architectural and design
features in the structures or area involved in the project.
‘‘(4) ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.—For pur-
poses of this subsection, the activities described in subsection
(d)(1) shall be considered eligible affordable housing activities,
except that—
‘‘(A) such activities shall be conducted with respect
to affordable housing rather than with respect to severely
distressed public housing projects; and
‘‘(B) eligible affordable housing activities under this
subsection shall not include the activities described in sub-
paragraphs (B) through (E), (J), or (K) of subsection (d)(1).
‘‘(5) MAXIMUM GRANT AMOUNT.—A grant under this sub-
section for a fiscal year for a single smaller community may
not exceed $1,000,000.
‘‘(6) CONTRIBUTION REQUIREMENT.—A smaller community
applying for a grant under this subsection shall be considered
an applicant for purposes of subsection (c) (relating to contribu-
tions by applicants), except that—
‘‘(A) such supplemental amounts shall be used only
for carrying out eligible affordable housing activities; and
‘‘(B) paragraphs (1)(B) and (3) shall not apply to grants
under this subsection.
‘‘(7) APPLICATIONS AND SELECTION.—
‘‘(A) APPLICATION.—Pursuant to subsection (e)(1), the
Secretary shall provide for smaller communities to apply
for grants under this subsection, except that the Secretary
may establish such separate or additional criteria for
applications for such grants as may be appropriate to carry
out this subsection.
‘‘(B) SELECTION CRITERIA.—The Secretary shall estab-
lish selection criteria for the award of grants under this
subsection, which shall be based on the selection criteria
established pursuant to subsection (e)(2), with such changes
as may be appropriate to carry out the purposes of this
subsection.
‘‘(8) COST
LIMITS.—The cost limits established pursuant
to subsection (f) shall apply to eligible affordable housing activi-
ties assisted with grant amounts under this subsection.
‘‘(9) INAPPLICABILITY OF OTHER PROVISIONS.—The provisions
of subsections (g) (relating to disposition and replacement of
severely distressed public housing), and (h) (relating to adminis-
tration of grants by other entities), shall not apply to grants
under this subsection.
‘‘(10) REPORTING.—The Secretary shall require each smaller
community receiving a grant under this subsection to submit
a report regarding the use of all amounts provided under the
grant.
‘‘(11) DEFINITIONS.—For purposes of this subsection, the
following definitions shall apply:
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‘‘(A) AFFORDABLE
HOUSING.—The term ‘affordable
housing’ means rental or homeownership dwelling units
that—
‘‘(i) are made available for initial occupancy to
low-income families, with a subset of units made avail-
able to very- and extremely-low income families; and
‘‘(ii) are subject to the same rules regarding occu-
pant contribution toward rent or purchase and terms
of rental or purchase as dwelling units in public
housing projects assisted with a grant under this sec-
tion.
‘‘(B) SMALLER COMMUNITY.—The term ‘smaller commu-
nity’ means a unit of general local government (as such
term is defined in section 102 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5302)) that—
‘‘(i) has a population of 50,000 or fewer; and
‘‘(ii)(I) is not served by a public housing agency;
or
‘‘(II) is served by a single public housing agency,
which agency administers 100 or fewer public housing
dwelling units.’’.
(c) ANNUAL REPORT.—Section 24(l) of the United States Housing
Act of 1937 (42 U.S.C. 1437v(l)) is amended—
(1) in paragraph (3), by striking ‘‘; and’’ and inserting
‘‘, including a specification of the amount and type of assistance
provided under subsection (n);’’;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
‘‘(4) the types of projects funded, and number of affordable
housing dwelling units developed with, grants under subsection
(n); and’’.
(d) FUNDING.—Section 24(m) of the United States Housing Act
of 1937 (42 U.S.C. 1437v(m)) is amended by adding at the end
the following:
‘‘(3) SET-ASIDE FOR MAIN STREET HOUSING GRANTS.—Of the
amount appropriated pursuant to paragraph (1) for any fiscal
year, the Secretary shall provide up to 5 percent for use only
for grants under subsection (n).’’.
TITLE V—COMMUNITY DEVELOPMENT
BLOCK GRANTS
SEC. 501. FUNDING FOR INSULAR AREAS.
(a) DEFINITION
OF INSULAR AREAS.—Section 102(a) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)) is amended by adding at the end the following:
‘‘(24) The term ‘insular area’ means each of Guam, the
Northern Mariana Islands, the Virgin Islands, and American
Samoa.’’.
(b) DEFINITION OF UNIT OF GENERAL GOVERNMENT.—The first
sentence of section 102(a)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(1)) is amended—
(1) by inserting ‘‘and’’ after ‘‘Secretary;’’; and
(2) by striking ‘‘; and the Trust Territory of the Pacific
Islands’’.
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117 STAT. 2697
PUBLIC LAW 108–186—DEC. 16, 2003
(c) STATEMENT
OF ACTIVITIES
AND REVIEW.—Section 104 of
the Housing and Community Development Act of 1974 (42 U.S.C.
5304) is amended—
(1) in subsection (a)(1)—
(A) in the first sentence—
(i) by striking ‘‘or’’ after ‘‘State,’’; and
(ii) by inserting ‘‘or under section 106(a)(3) by any
insular area,’’ after ‘‘government,’’; and
(B) in the second sentence—
(i) by striking ‘‘and in the case of’’ and inserting
a comma; and
(ii) by inserting ‘‘and insular areas receiving grants
pursuant to section 106(a)(3),’’ after ‘‘106(d)(2)(B),’’;
(2) in subsection (e)(1), by striking ‘‘section 106(b) or section
106(d)(2)(B)’’ and inserting ‘‘subsection (a)(3), (b), or (d)(2)(B)
of section 106’’; and
(3) in subsection (m)—
(A) in paragraph (1), by inserting ‘‘(a)(2),’’ after ‘‘under
subsection’’; and
(B) in paragraph (2), by striking ‘‘government—’’ and
inserting ‘‘government other than an insular area—’’.
(d) ALLOCATION AND DISTRIBUTION OF FUNDS.—Section 106(a)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5306(a)) is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘an appropriation Act’’ and inserting
‘‘appropriation Acts’’; and
(B) by striking ‘‘in any year’’ and inserting ‘‘for such
fiscal year’’;
(2) in paragraph (2), by inserting ‘‘under paragraph (1)
and after reserving such amounts for insular areas under para-
graph (2)’’ after ‘‘tribes’’;
(3) in paragraph (3), by striking ‘‘paragraphs (1) and (2)’’
and inserting ‘‘paragraphs (1), (2), and (3)’’;
(4) by redesignating paragraphs (2) and (3) (as so amended)
as paragraphs (3) and (4); and
(5) by inserting after paragraph (1) the following:
‘‘(2) For each fiscal year, of the amount approved in appropria-
tion Acts under section 103 for grants for such fiscal year (excluding
the amounts provided for use in accordance with section 107),
the Secretary shall reserve for grants to insular areas $7,000,000.
The Secretary shall provide for distribution of amounts under this
paragraph to insular areas on the basis of the ratio of the population
of each insular area to the population of all insular areas. In
determining the distribution of amounts to insular areas, the Sec-
retary may also include other statistical criteria as data become
available from the Bureau of the Census, but only if such criteria
are contained in a regulation promulgated by the Secretary after
notice and public comment.’’.
(e) CONFORMING AMENDMENT.—The first sentence of section
106(d)(1) of the Housing and Community Development Act of 1974
(42 U.S.C. 5306(d)(1)) is amended by striking ‘‘paragraphs (1) and
(2)’’ and inserting ‘‘paragraphs (1), (2), and (3)’’.
(f) SPECIAL PURPOSE GRANTS.—Section 107 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5307) is amended—
(1) in subsection (a)(1)—
(A) by striking subparagraph (A); and
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PUBLIC LAW 108–186—DEC. 16, 2003
LEGISLATIVE HISTORY—S. 811 (H.R. 1276) (H.R. 1614):
HOUSE REPORTS: Nos. 108–164 accompanying H.R. 1276 and 108–165 accom-
panying H.R. 1614 (both from Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 149 (2003):
Nov. 24, considered and passed Senate.
Dec. 8, considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Dec. 16, Presidential remarks.
(B) by redesignating subparagraphs (B) through (H)
as subparagraphs (A) through (G), respectively; and
(2) in subsection (b)—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (7) as
paragraphs (1) through (6), respectively.
(g) REGULATIONS.—The Secretary of Housing and Urban
Development shall issue regulations to carry out the amendments
made by this section, which shall take effect not later than the
expiration of the 90-day period beginning on the date of the enact-
ment of this Act.
Approved December 16, 2003.
Effective date.
42 USC 5302
note.
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