Stewart B. McKinney Homeless Assistance Amendments Act of 1988
PL 100-628 (H.R.4352), enacted 11/07/1988

102 STAT. 3224 
PUBLIC LAW 100-628—NOV. 7, 1988 
Public Law 100-628 
100th Congress 
An Act 
Nov. 7, 1988 
[H.R. 4352] 
Stewart B. 
McKinney 
Homeless 
Assistance 
Amendments 
Act of 1988. 
Disadvantaged 
persons. 
42 u s e 11301 
note. 
To axuani the Stewart B. lifcKinney HcmielesB Assistance Act to extend programs 
providing urgently needed assistance 
fin* 
the homeless, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled^ 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TTTLE.—^This Act may be cited as the "Stewart 
B. McKinney Homeless Assistance Amendments Act of 1988". 
(b) TABLE OF CONTENTS.— 
Sec 1. Short title and table of contents. 
TITLE I—GENERAL PROVISIONS 
Sec. 101. Budget compliance. 
Sec. 102. Annual program summary by Comptroller General. 
TITLE n—INTERAGENCY COUNCIL ON THE HOB4ELESS 
Sec 201. Preparation of bimonliily bulletin. 
Sec 202. Provision of professional and technical assistance. 
Sec 203. Establishment ai program timetables. 
Sec 204. Authorization of appropriations. 
Sec 205. Extension of Interagency CounciL 
Sec 206. Ekioouragement of «tate involvement. 
TITLE m—FEDERAL EMERGENCY BfANAGEMENT FOOD AND SHELTER 
PROGRAM 
Sec 901. Report on emergency food and shelter grant program. 
Sec 302. Authorization of appropriations. 
TITLE IV—HOUSING ASSISTANCE 
Subtitle A—Comprehensive Homeless Assistance Plan 
Sec 401. Submission of comprehensive plan. 
Sec. 402. Contents of comprehensive plan. 
Sec 403. Performance reviews. 
Sec 404. Coordination. 
Subtitle B—^Emergency Shelter Grants 
Sec 421. Distribution of assistance by States to private nonprofit organizations. 
Sec 422. Essential services. 
Sec 423. Homelessness prevention as an eligible activity. 
Sec 424. Required use e
r
f
" building as shelter. 
Sec 425. Authorization of appropriations. 
Subtitle C—SupptHtive Housing 
Sec 441. Availability of operating and technical assistance for new structures. 
Sec 442. Project sponsor. 
Sec 443. Maximum period of residence in transitional housing. 
Sec 444. Definition of permanent housing. 
Sec 445. Use of advances to repay debt. 
Sec. 446. Limit on grants. 
Sec 447. Eligible activities. 
Sec 448. Employment assistance. 
Sec 449. Limits (m advances and grants. 
Sec 450. Site control. 
Sec 451. Flood plain restrictions. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3225 
Sec. 452. Matching requirement. 
Sec. 453. Reports to Congreas. 
Sec. 454. Authorization cS appropnaiiaaa. 
Sec 455. Reallocatimis. 
Subtitle D—Supplemental Assistance for Facilities To Assist the Homeless 
Sec. 461. Use of assistance. 
Sec. 462. Reservation of funds. 
Sec 463. Site control. 
Sec 464. Authorization <rf'appit^iriations. 
Subtitle E—^Miscellaneous Provisions 
Sec 481. Section 8 assistance for single room occupancy dwellings. 
Sec 482. Administrative provisions. 
Sec 483. Report on effect of rent control on homeleasness. 
Sec. 484. Report on allocation formulas. 
Sec. 485. Regulations. 
TITLE V—roENTIFlCATION AND USE OF SURPLUS FEDERAL PROPERTY 
Sec 501. Identification and use of unutilized and underutilized public buildings and 
property. 
TITLE VI—REVISION AND EXTENSION OF PROGRAMS OF HEALTH CARE 
FOR THE HOMELESS 
Subtitie A—Categorical Grants for Primary Health Services and Substance Abuse 
Services 
Sec 601. Increase in required amount of matchinjg funds and modification in eligi-
bility for waiver with respect to matching funds. 
Sec 602. Establishment of autiiority for temporary continued provision of services 
to certain former homeless individuals. 
Sec. 603. Clarification with respect to certain provisions. 
Sec. 604. Authorization of appropriations. 
Subtitie B—Block Grant for Community Mental Health Services 
Sec. 611. Autliorization of a^tpropriations and contingent conversions to categorical 
program. 
Sec 612. EUgibility of territories. 
Sec 613. Technical and ccmforming amendments. 
Subtitie C—^Authorization of Appropriations for Community Demonstration Projects 
Sec 621. Mental health service for homeless individuals with chronic mental 
illness. 
Sec. 622. Alcohol and drug abuse treatment of homeless individuals. 
Subtitle D—General Provisions 
Sec 631. Effective dates. 
TITLE Vn—EDUCATION. TRAINING. AND COMMUNITY SERVICES 
PROGRAMS 
Subtitie A—^Homeless Assistance Programs 
Sec 701. Adult education for the homeless. 
Sec 702. Education for homeless children and youtli. 
Sec. 703. Job training for the homeless. 
Sec 704. Emergency community services homeless grant program. 
Sec 705. Technical amendments to Older Americans Act of 1965. 
Subtitie B—Job Training and Partnership Act 
Sec. 711. Short titie. 
Sec 712. Incraitive bonus entitiement for employable dependent individuals. 
Sec. 713. Provisions for improving assistance to hard-to-serve individuals and wel-
fare recipioits. 
Sec 714. Conforming and miscellaneous amendments. 
TITLE Vffl—VEH'ERANS PROGRAMS 
Sec. 801. Medical programs. 
102 STAT. 3226 
PUBLIC LAW 100-628—NOV. 7, 1988 
TITLE IX—AID TO FAMILIES WITH DEPENDENT CHILDREN; 
UNEMPLOYMENT COMPENSATION 
Sec. 901. Extension of prohibition against implementation of certain proposed 
regulations. 
Sec. 902. Review of policy governing use of AFDC funds to meet emergency needs of 
families eligible for AFDC through emergency assistance or special 
needs payments; report to Congress. 
Sec. 903. Demonstration projects to reduce number of homeless AFDC families in 
welfare hotels. 
Sec. 904. Preventing fraud and abuse in housing and urban development programs. 
TITLE X—HOUSING AND COMMUNITY DEVELOPMENT TECHNICAL 
AMENDMENTS 
Subtitle A—Housing Assistance 
Sec. 1001. Income eligibility for assisted housing. 
Sec. 1002. Public housing child care grants. 
Sec. 1003. Public housing resident management. 
Sec. 1004. Prohibition of reduction of section 8 contract rents. 
Sec. 1005. Project-based section 8 assistance. 
Sec. 1006. Section 8 assistance for residents of rental rehabilitation projects. 
Sec. 1007. Rental rehabilitation program. 
Sec. 1008. Tweemill House. 
Sec. 1009. Housing counseling. 
Sec. 1010. Multifamily housing management and preservation. 
Sec. 1011. Multifamily housing capital improvements assistance. 
Sec. 1012. Use of funds recaptured from refinancing State finance projects. 
Sec. 1013. Public housing lease and grievance procedures. 
Sec. 1014. Exceptions to tenant preference provisions. 
Subtitle B—Preservation of Low Income Housing 
Sec. 1021. Notice of intent. 
Sec. 1022. Plan of action. 
Sec. 1023. Incentives to extend low income use. 
Sec. 1024. Criteria for approval of plan of action. 
Sec. 1025. Modification of existing regulatory agreements. 
Sec. 1026. Report on notice to tenants and incentives. 
Sec. 1027. Definition of eligible low income housing. 
Sec. 1028. Rural rental housing displacement prevention. 
Sec. 1029. Section 8 loan management program. 
Subtitle C—Rural Housing 
Sec. 1041. Implementation of guaranteed lo£m demonstration. 
Sec. 1042. Section 515 rents. 
Sec. 1043. Availability of domestic farm labor housing for other families. 
Sec. 1044. Rural rental rehabilitation demonstration. 
Sec. 1045. Legal representation in litigation involving collection of claims and obli-
gations arising out of rural housing programs. 
Subtitle D—Mortgage Insurance and Secondary Mortgage Market Programs 
Sec. 1061. Change in definition of veteran. 
Sec. 1062. Limitation on use of single family mortgage insurance by investors. 
Sec. 1063. Procedures applicable to assumption of insured mortgages. 
Sec. 1064. Payment of claims on losses from preforeclosure sales. 
Sec. 1065. Mortgage insurance on Hawaiian home lands. 
Sec. 1066. Home equity conversion mortgage insurance demonstration. 
Sec. 1067. Reciprocity in approval of housing subdivisions among Federal agencies. 
Sec. 1068. Permanent authority to purchase second mortgages on multifamily 
properties. 
Subtitle E—Community Development and Miscellaneous Programs 
Sec. 1081. City and county classifications. 
Sec. 1082. Corrections to cross-references. 
Sec. 1083. Conserving neighborhoods and housing by prohibiting displacement. 
Sec. 1084. Urban development action grants. 
Sec. 1085. Neighborhood reinvestment corporation. 
Sec. 1086. National flood insurance program. 
Sec. 1087. Home mortgage disclosure. 
Sec. 1088. Lead-based paint poisoning prevention. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3227 
Sec. 1069. Interstate land sales full disclosure. 
Sec. 1090. Defflgnation of enterprise zones. 
Sec 1091. Report on recommended policy for dealing with radon in assisted 
housing. 
TITLE I—GENERAL PROVISIONS 
SEC 101. BUDGET COMPLIANCE. 
(a) IN GENERAL.—^This Act and the amendments made by this Act 
may not be construed to provide for new budget authority, bu<^et 
outlays, or new entitlement authority, for fiscal year 1989 or 1990 in 
excess of the appropriate a^r^ate levels established by the concur-
rent resolution on the budget for such fiscal year for the prc^rams 
authorized by this Act and the amendments made by this Act. 
0
1
>
) DEPTNITIONS.—^For purposes of this section, the terms 'Tsudget 
authority", "budget outlays", "concurrent resolution on the 
budget", and "entitlement authority" have the meanings given such 
terms in section 3 of the Congressional Budget Act of 1974 (2 
U.S.C. 622). 
SEC 102. ANNUAL PROGRAM SUMMARY BY COMPTROLLER GENERAL. 
(a) IN GENERAL.—Section 105 of the Stewart B. McKinney Home-
less Assistance Act (42 U.S.C. 11304) is amended— 
(1) by inserting "annually" after "shall"; and 
(2) by striking "a report" and all that follows and insertii^ 
the following: to the Congress an annual summary of the 
status of each program authorized under this Act.". 
(b) CONFORMING AICENDMENTS.— 
(1) SECTION HEADING.—The heading for section 105 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11304) 
is amended by striking "AUDITS" and inserting "ANNUAL 
PROGRAM SUMMARY". 
(2) TABLE OF C»NTENTS,—The item relating to section 105 in 
the table of contents in section 101(b) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11301 prec.) is amended 
to read as follows: 
"Sec. 105. Annual program summary by Comptroller General.". 
TITLE II—INTERAGENCY COUNCIL ON 
THE HOMELESS 
42 use 11303 
note. 
SEC 201. PREPARATION OF BIMONTHLY BULLETIN. 
Section 203(a) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11313(a)) is amended— 
(1) by striking "and" at the end of paragraph (5); 
(2) by striking the period at the end of paragraph (6) and 
inserting "; and ; and 
(3) by adding at the end the following new paragraph: 
"CD prepare and distribute to States (including State contact 
persons), local governments, and other public and private non-
f
rofit oiganizations, a bimonthly bulletin that describes the 
'ederal resources available to them to assist the homeless, 
including current information r^arding application deadlines 
and appropriate persons to contact in each Federal agency 
inpovidrng uie resources.". 
State and local 
governments. 
19-194 0—91—Part 4 
9 : QL 3 
102 STAT. 3228 
PUBLIC LAW 100-628—NOV. 7, 1988 
SEC. 202. PROVISION OF PROFESSIONAL AND TECHNICAL ASSISTANCE. 
Section 203(a)(4) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11313(a)(4)) is amended— 
(1) by striking ", through personnel employed by the Council 
in each of the 10 standard Federal regions, and inserting the 
following: "(by at least 2, but in no case more than 5, regional 
coordinators employed by the Council, each having responsibil-
ity for interaction and coordination of the activities of the 
Council within the 10 standard Federal regions)"; and 
(2) by striking subparagraphs (A) and (B) and inserting the 
following: 
"(A) interpret regulations and assist in the application 
process for Federal assistance, including grants; 
"(B) provide assistance on the ways in which Federal 
programs, other than those authorized under this Act, may 
best be coordinated to complement the objectives of this 
Act; 
"(C) develop recommendations and program ideas based 
on regional specific issues in serving the homeless popu-
lation; and 
"(D) establish a schedule for biennial regional workshops 
to be held by the Council in each of the 10 standard Federal 
regions to further carry out and provide the assistance 
described in subparagraphs (A), (B), and (C) and other 
appropriate assistance as necessary, of which— 
"(i) not less than 5 such workshops shall be held by 
September 30,1989; and 
"(ii) at least 1 such workshop shall be held in each of 
the 10 Federal regions every 2 years, beginning on 
September 30,1988;". 
SEC. 203. ESTABLISHMENT OF PROGRAM TIMETABLES. 
Section 203 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11313) is amended by adding at the end the following new 
subsection: 
"(e) PROGRAM TIMETABLES.—Not later than 90 days after the date 
of the enactment of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988, the head of each Federal agency that is a 
member of the Council and responsible for administering a program 
under this Act shall provide to the Council a timetable regarding 
State and local 
program funding availability and application deadlines. The Council 
governments. 
shall furnish such information to each State (including the State 
contact person).". 
SEC. 204. AUTHORIZATION OF APPROPRIATIONS. 
Section 208 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11318) is amended to read as follows: 
"SEC. 208. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this title 
$1,100,000 for fiscal year 1989 and $l,200,u00 for fiscal year 1990.". 
SEC. 205. EXTENSION OF INTERAGENCY COUNCIL. 
Section 209 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11319) is amended by striking "upon the expiration of the 
3-year period beginning on the date of the enactment of this Act" 
and inserting "on October 1,1990". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3229 
SEC. 206. ENCOURAGEMENT OF STATE INVOLVEMENT. 
(a) IN GENERAL.—Title n of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11311 et seq.) is amended by adding at the 
end the following new section: 
*^EC. 210. ENCOURAGEMENT OF STATE INVOLVEMENT. 
42 USC 11320. 
"(a) STATE CONTACT PERSONS.—Each State shall designate an 
individual to serve as a State contact person for the purpose of 
receiving and disKseminating information and communications re-
ceived from the Council, including the bimonthly bulletin described 
in section 203(aX7). 
"(b) STATE INTERAGENCY COUNCILS AND LEAD AGENCIES.—Elach 
State is encouraged to establish a State interagency council on the 
homeless or designate a lead agency for the State for the purpose of 
assuming primary responsibility for coordinating and interacting 
with the Council and State and local agencies as necessary.". 
(b) CONFORMING AMENDMENT.—The table of contents in section 
101(b) of the Stewart B. McIQnney Homeless Assistance Act (42 
U.S.C. 11301 prec.) is amended by inserting after the item relating to 
section 209 the following new item: 
"Sec. 210. Encouragement of State involvement.". 
TITLE III—FEDERAL EMERGENCY MAN-
AGEMENT FOOD AND SHELTER PRO-
GRAM 
SEC. 301. REPORT ON EMERGENCY FOOD AND SHELTER GRANT PRO-
GRAM. 
Not later than 6 months after the date of the enactment of this 
Act, the Director of the Federal Emergency Management Agency 
shall submit a report to the appropriate committees of the Congress 
on the emergency food and shelter grant pn^am administered 
under subtitle B of title III of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11341 et seq.). The report shall include— 
(1) proposed l^islation for a minimum of 2 alternative 
statutory formulas incorporating the criteria on which the 
distribution and disbursement of such grants is based, including 
utilization of data that reflect the number of long-term un-
employed workers in the States involved (including those whose 
unemployment benefits have run out and those who have been 
out of work so long they are no longer actively seeking employ-
ment); and 
(2) supporting evidence for each alternative formula and cri-
teria that explains how each formula would be effective in 
targeting such grants to the areas in the Nation that have the 
greatest need. 
SEC. 302. AUTHORIZATION OF APPROPRIATIONS. 
Section 322 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11352) is amended to read as follows: 
"SEC. 322. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this title 
$129,000,000 for fiscal year 1989 and $134,000,000 for fiscal year 
1990.". 
102 STAT. 3230 
PUBLIC LAW 100-628—NOV. 7, 1988 
TITLE IV—HOUSING ASSISTANCE 
Subtitle A—Comprehensive Homeless 
Assistance Plan 
SEC. 401. SUBMISSION OF COMPREHENSIVE PLAN. 
(a) ANNUAL SUBMISSION.—Section 401(a)(1) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11361(a)(1)) is 
amended by inserting "annually" after "submits". 
(b) SUBMISSION TO OTHER JURISDICTIONS.—Section 401(a) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361(a)) 
is amended— 
(1) by striking "and" at the end of paragraph (1); 
(2) by redesignating paragraph (2) as paragraph (3); and 
(3) by inserting after pargigraph (1) the following new 
paragraph: 
State and local 
"(2) at the time of submission of the comprehensive plan to 
governments. 
the Secretary-
Urban areas. 
»(^) ^^ ^^^ ^^^ ^^ ^ ^^^^^ 
j^. ^jg^ submits a copy of the 
comprehensive plan to 'each metropolitan city or urban 
county that is located in the State and is subject to the 
requirements of this subsection; and 
"(B) in the case of a metropolitan city or urban county, it 
also submits a copy of the comprehensive plan to the State 
in which it is located; and". 
SEC. 402. CONTENTS OF COMPREHENSIVE PLAN. 
Section 401(b) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11361(b)) is amended— 
(1) in paragraph (3)— 
(A) by inserting "facilities and" before "services"; and 
(B) by striking "and" at the end; 
(2) in paragraph (4)— 
(A) by inserting "facilities and" before "services"; and 
(B) by striking the period at the end and inserting a 
semicolon; and 
(3) by adding at the end the following new paragraphs: 
State and local 
"(5) an identification of the appropriate person or agency to 
governments. 
contact in the State, metropolitan city, or urban county regard-
Urban areas. 
jj^g information relating to the contents of the comprehensive 
plan; and 
"(6) an assurance that each recipient and project sponsor 
shall administer, in good faith, a policy designed to ensure that 
the homeless facility is free from the illegal use, possession, or 
distribution of drugs or alcohol by its beneficiaries.". 
SEC. 403. PERFORMANCE REVIEWS. 
Section 401(dX3) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11361(dX3)) is amended by inserting before the period 
the following: "or to respond to recommendations made in accord-
ance with paragraph (2) that are received at least 60 days prior to 
the beginning of the fiscal year". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3231 
SEC. 404. COORDINATION. 
Section 401 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11361) is amended by adding at the end the following new 
subsection: 
"(g) COORDINATION.—If the comprehensive plan submitted by a 
State contains a designation of a State agency or a State contact 
person to coordinate homeless assistance efforts in the State, each 
Federal agency that provides assistance under this Act shall provide 
to the designated State agency or contact person such information 
as may be appropriate to facilitate such coordination.". 
Subtitle B—Emergency Shelter Grants 
State and local 
governments. 
SEC. 421. DISTRIBUTION OF ASSISTANCE BY STATES TO PRIVATE NON-
PROFIT ORGANIZATIONS. 
(a) IN GENERAL.—Section 413(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11373(a)) is amended by 
inserting "and private nonprofit 
organizations" after 
"local 
governments". 
(b) DISTRIBUTIONS TO NONPROFITS.—Section 413(c) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11373(c)) is amended 
by adding at the end the following new sentence: "Any State 
receiving assistance under this subtitle may distribute all or a 
portion of such assistance to private nonprofit organizations provid-
ing assistance to homeless individuals, if the local government for 
the locality in which the project is located certifies that it approves 
of the project.". 
SEC. 422. ESSENTIAL SERVICES. 
(a) AMOUNT PERMITTED.—Section 414 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11374) is amended— 
(1) in subsection (aX2XB) and in subsection (b), by striking 
"15" and inserting "20"; and 
(2) in subsection (aX2XB), by striking "the amount of any 
assistance to a" and inserting "the aggregate amount of all 
eissistance to a State or". 
(b) SUPPLEMENTAL USE OF ASSISTANCE.—Section 414(aX2XA) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11374(aX2XA)) is amended by inserting before the semicolon the 
following: ", or the use of assistance under this subtitle would 
complement those services". 
SEC. 423. HOMELESSNESS PREVENTION AS AN ELIGIBLE ACTIVITY. 
(a) IN GENERAL.—Section 414(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11374(a)) is amended by adding 
at the end the following: 
"(4) Efforts to prevent homelessness such as financial assist- 
utilities. 
ance to families who have received eviction notices or notices of 
termination of utility services if— 
"(A) the inability of the family to make the required 
pavments is due to a sudden reduction in income; 
(B) the assistance is necessary to avoid the eviction or 
termination of services; 
"(C) there is a reasonable prospect that the family will be 
able to resume pajmtients within a reasonable period of 
time; and 
102 STAT. 3232 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(D) the assistance wiU not supplant funding for preexist-
ing homelessness prevention activities from other sources. 
Ac^vities under this paragraph shall be treated as 'essentia] 
services' for the purpose of paragraph (2XB).". 
42 use 11374 
(b) REPORTING REQUIREMENT.—^The Comptroller Greneral of the 
iiote- 
United States shall conduct a study and report to the Congress not 
later than 1 year after the date of the enactment of this Act on 
various programs to prevent homelessness implemented by 
grantees, with particular focus on the different methods employed 
by grantees to determine eligibility for homelessness prevention 
assistance and restrictions or limitations, if any, imposed under such 
programs. Such report shall include— 
(1) an examination of other homelessness prevention pro-
grams, including other Federal programs and State and local 
programs; and 
(2) recommendations for such l^islation as the Comptroller 
General determines appropriate, including recommendations on 
how to prevent homelessness as a result of mortgage 
foreclosures. 
SEC. 424. REQUIRED USE OF BUILDING AS SHELTER 
Section 415(cXl) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11375(cXl)) is amended to read as follows: 
"(1) it will— 
"(A) in the case of assistance involving major rehabilita-
tion or conversion, maintain any building for which assist-
ance is used under this subtitle as a shelter for homeless 
individuals and families for not less than a 10-year period; 
"(B) in the case of assistance involving rehabilitation 
(other than major rehabilitation or conversion), maintain 
any building for which assistance is used under this subtitle 
as a shelter for homeless individuals and families for not 
less thaji a 3-year period; or 
"(C) in the case of assistance involving solely activities 
described in paragraphs (2) and (3) of ^Section 414(a), provide 
services or shelter to homeless individuals and families for 
the period during which such assistance is provided, with-
out r^ard to a particular site or structure as long as the 
same general population is served.". 
SEC. 425. AUTHORIZATION OF APPROPRUTIONS. 
Section 417 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11377) is amended to read as follows: 
"SEC. 417. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this subtitle 
$120,000,000 for fiscal year 1989 and $125,000,000 for fiscal year 
1990.". 
Subtitle C—Supportive Housing 
SEC. 441. AVAILABILITY OF OPERATING AND TECHNICAL ASSISTANCE 
FOR NEW STRUCTURES. 
(a) DEFINITION OF PROJECT.—Section 422(7) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11382(7)) is amended 
by inserting before the period at the end the following: "or with 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3233 
respect to which the Secretary provides technical assistance or 
annual payments for operating costs under this subtitle". 
(b) OPERATING ASSISTANCE.—Section 423(aX3) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11383(aX3)) is 
amended by inserting after "transitional housing" the following: 
"(without regard to whether the housing is an existing structure)". 
(c) TECHNICAL ASSISTANCE.—Section 423(aX4) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11383(aX4)) is 
amended to read as follows: 
"(4) Technical assistance in— 
"(A) establishing supportive housing in an existing 
structure; 
"(B) operating supportive housing (without regard to 
whether the housing is an existing structure); and 
"(C) providing supportive services to the residents of 
supportive housing (without regard to whether the housing 
is an existing structure).". 
SEC. 442. PROJECT SPONSOR. 
(a) IN GENERAL.—Section 422(8) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11382(8)) is amended by insert-
ing before the period at the end the following: "or a public housing 
agency". 
(b) STATE APPROVALS OF PERMANENT HOUSING FOR HANDICAPPED 
HOMELESS PERSONS.— 
(1) PROJECT SPONSOR.—Section 422(8) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11382(8)) is amended by 
striking "the Governor or other chief executive official of a 
State" and inserting "a State". 
(2) LETTERS OF PARTICIPATION.—Section 424(aX2XFXi) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11384(aX2)(FXi)) is amended by striking "the Governor or other 
chief executive official of the State" and inserting "the State". 
SEC. 443. MAXIMUM PERIOD OF RESIDENCE IN TRANSITIONAL HOUSING. 
Section 422(12XA) of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11382(12XA)) is amended in the first sentence by 
striking "within a reasonable amount of time, as determined by the 
Secretary" and inserting "within 24 months (or such longer period 
as the Secretary determines is necessary to facilitate the transition 
of homeless individuals to independent living)". 
SEC. 444. DEFINITION OF PERMANENT HOUSING. 
Section 422(12XB) of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11382(12XB)) is amended by inserting after the 
first sentence the following: "The Secretary may waive the limita-
tion contained in the preceding sentence if the applicant dem-
onstrates that— 
"(i) local market conditions dictate the development of a 
larger project; and 
"(ii) such development will achieve the neighborhood integra-
tion objectives of the program within the context of the affected 
community.". 
SEC. 445. USE OF ADVANCES TO REPAY DEBT. 
(a) IN GENERAL.—Section 423(aXl) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C!. 11383(a)(1)) is amended by 
102 STAT. 3234 
PUBLIC LAW 100-628—NOV. 7, 1988 
42 use 11383 
note. 
Handicapped 
persons. 
adding at the end the following new sentence: "The repayment of 
any outstanding debt owed on a loan made to purchase an existing 
structure shall be considered to be a cost of acquisition eligible for 
an advance under this paragraph if the structure was not used £is 
supportive housing prior to the receipt of assistance.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
applies to notifications of awards for grants made under subtitle C of 
title IV of the Stewart B. McKinney Homeless Assistance Act on or 
after November 1,1987. 
SEC. 446. LIMIT ON GRANTS. 
Section 423(aX2) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11383(aX2)) is amended by inserting ", in an amount 
not to exceed $200,000," after "A grant". 
SEC. 447. ELIGIBLE ACTIVITIES. 
Section 423(a) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11383(a)) is amended— 
(1) in paragraph (3), by inserting before the period at the end 
the following: ", and for operating costs for permanent housing 
for handicapped homeless persons, not to exceed 50 percent of 
the annual operating costs of such housing for the first year of 
operation, and not to exceed 25 percent of such costs for the 
second year of operation"; and 
(2) by adding at the end the following: 
"A recipient may receive assistance under both paragraphs (1) and 
(2).". 
SEC. 448. EMPLOYMENT ASSISTANCE. 
(a) AUTHORITY TO F*ROVIDE GRANTS,—Section 423(a) of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11383(a)) is 
amended by inserting after paragraph (4) the following new para-
graph: 
"(5) A grant for establishing and operating an emplojonent 
assistance program for th^ residents of transitional housing, 
which shall include— 
"(A) employment of residents in the operation and 
maintenance of the housing; and 
"(B) the pa3rment of the transportation costs of residents 
to places of employment.". 
(b) PRIORITY.—Section 424(b) of the Stewart B. McKinney Home-
less Assistance Act (42 U.S.C. 11384(b)) is amended— 
(1) by striking "and" at the end of paragraph (6); 
(2) by redesignating paragraph (7) as paragraph (8); and 
(3) by inserting after paragraph (6) the following new 
paragraph: 
"(7) in the case of transitional housing, the extent to which 
the project contains an emplojonent assistance program which 
meets the program criteria described in section 423(aX5); and" 
SEC. 449. LIMITS ON ADVANCES AND GRANTS. 
(a) IN GENERAL.—Section 423(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11383(a)) is amended by adding 
at the end the following: 
"The Secretary may increase the limit contained in paragraphs (1) 
and (2) to $400,000 in areas which the Secretary finds have high 
acquisition and rehabilitation costs.". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3235 
(b) LIMITED NEW CONSTRUCTION AUTHORITY.—Section 423 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11383) is 
amended by adding at the end the following: 
"(d) LnoTED NEW CONSTRUCTION AUTHORITY.—^In addition to the 
purposes described in subsection (aXD, an advance under such 
subsection may be used for new construction only if the Secretary 
finds that the project— 
"(1) involves the cooperation of a city and a State university; 
"(2) has the land donated by a State university; 
"(3) proposes a supportive housing structure of at least 10,000 
square feet; and 
"(4) proposes a model supportive housing project with a com-
prehensive support system, including health services, job coun-
seling, mental health services, and housing assistance and 
advocacy.*'. 
SEC. 450. SITE CONTROL. 
(a) REQUIREMENT.— 
(1) IN GENERAL.—Section 424(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11384(a)) is amended by 
adding at the end the following: 
"(3) The Secretary shall require that an application furnish 
reasonable assurances that the applicant will own or' have 
control of a site for the proposed project not later than 6 months 
after notification of an award for grant assistance. An applicant 
may obtain ownership or control of a suitable site different from 
the site specified in the application. If an applicant fails to 
obtain ownership or control of the site within 1 year after 
notification of an award for grant assistance, the grant shall be 
recaptured and reallocated.". 
(2) E^FFEcnvE DATE.—^The amendment made by paragraph (1) 
applies to notifications of awards for grants made under subtitle 
C of title IV of the Stewart B. McKinney Homeless Assistance 
Act on or after November 1,1987. 
(b) PRIORITY.—Section 424(b) of the Stewart B. McKinney Home-
less Assistance Act (42 U.S.C. 11384(b)) (as amended by section 448 of 
this subtitle) is fiirtiier amended— 
(1) by striking "and" at the end of paragraph (7); 
(2) by redesignating paragraph (8) as paragraph (9); and 
(3) by inserting after paragraph (7) the following new 
paragraph: 
"(8) the extent to which the applicant or project sponsor has 
control of the site of the proposed project; and". 
SEC 451. FLOOD PLAIN RESTRICTIONS. 
Section 424 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11384) is amended by adding at the end the following: 
"(e) FLOOD PROTBCTION STANDARDS.—^Flood protection standards 
applicable to housing acquired, rehabilitated, or assisted under this 
subtitle shall be no more restrictive than the standards applicable 
under Executive Order No. 11988 (May 24, 1977) to the other pro-
grams under this title.". 
SEC. 452. MATCHING REQUIREBIENT. 
Section 425 of the Stewart B. McKinney Homeless Assistance Act 
(42 UJS.C. 1138$) is amended to read as follows: 
Grants. 
42 use 11384 
note. 
102 STAT. 3236 
PUBLIC LAW 100-628—NOV. 7, 1988 
"SEC. 425. MATCHING FUNDS REQUIREMENTS. 
"(a) IN GENERAL.—Each recipient shall be required to supplement 
the amount of assistance provided under paragraphs (1) and (2) of 
section 423(a) with an equal amount of funds from non-Federal 
State and local 
sources. Each State submitting an application for permanent hous-
governments. 
ing for handicapped homeless persons shall certify that it will 
supplement the amount of assistance provided under paragraphs (1) 
and (2) of section 423(a) with an equal amount of funds from non-
Federal sources. 
"(b) NON-FEDERAL FUNDS.—For the purpose of this section, the 
term 'funds from non-Federal sources' includes State or local agency 
funds, any salary paid to staff to carry out the program of the 
recipient, any salary paid to residents of transitional housing under 
an employment assistance program described in section 423(a)(5), 
the value of the time and services contributed by volunteers to carry 
out the program of the recipient at a rate determined by the 
Secretary, and the value of any donated material or building and 
the value of any lease on a building.". 
SEC. 453. REPORTS TO CONGRESS. 
Section 427 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11387) is amended to read as follows: 
"SEC. 427. REPORTS TO CONGRESS. 
"The Secretary shall submit annually to the Congress a report 
summarizing the activities carried out under this subtitle and set-
ting forth the findings, conclusions, and recommendations of the 
Secretary as a result of the activities. The report shall be submitted 
not later than 3 months after the end of each fiscal year (6 months 
in the case of fiscal year 1988).". 
SEC. 454. AUTHORIZATION OF APPROPRIATIONS. 
Section 428(a) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11388(a)) is amended to read as follows: 
"(a) IN GENERAL.—There are authorized to be appropriated to 
carry out this subtitle $100,000,000 for fiscal year 1989 and 
$105,000,000 for fiscal year 1990.". 
SEC. 455. REALLOCATIONS. 
Section 428 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11388) is amended by adding at the end the following new 
subsection: 
"(d) REALLOCATIONS.—If, following the receipt of applications for 
the final funding round under this subtitle for any fiscal year, any 
amount set aside for assistance pursuant to subsection (bXl), (bX2), 
or (c) will not be required to fund the approvable applications 
submitted for such assistance, the Secretary shall reallocate such 
amount for other assistance pursuant to this subtitle.". 
Subtitle D—Supplemental Assistance for 
Facilities To Assist the Homeless 
SEC. 461. USE OF ASSISTANCE. 
Section 432(a) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11392(a)) is amended— 
(1) in paragraph (1)-
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3237 
(A) by striking "or" at the end of subparagraph (A); and 
(B) by adding at the end the following new subparagraph: 
"(C) to provide supportive services for the homeless; or"; 
and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting "operation," after 
"renovation, ; and 
(B) in subparagraph (B), by striking "homeless individ-
uals" and inserting "the homeless". 
SEC. 462. RESERVATION OF FUNDS. 
The second sentence of section 432(d) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11392(d)) is amended— 
(1) by inserting "and services" after "facilities" each place it 
appears; and 
(2) by striking "individuals and" and inserting "individuals 
or . 
SEC. 463. SITE CONTROL. 
(a) REQUIREMENT.—Section 432 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11392) is amended— 
(1) by redesignating subsections (e) and (f) as subsections (f) 
and (g), respectively; and 
(2) by inserting after subsection (d) the following: 
"(e) SITE CONTROL.—The Secretary shall require that an applica-
tion furnish reasonable assurances that the applicant will own or 
have control of a site for the proposed project not later than 6 
months after notification of an award for grant assistance. An 
applicant may obtain ownership or control of a suitable site dif-
ferent from the site specified in the application. If an applicant fails 
to obtain ownership or control of the site within 1 year after 
notification of an award for grant assistance, the grant shall be 
recaptured and reallocated.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
applies to notifications of awards for grants made under subtitle D 
of title IV of the Stewart B. McKinney Homeless Assistance Act on 
or after November 1,1987. 
SEC. 464. AUTHORIZATION OF APPROPRIATIONS. 
The first sentence of section 434 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11394) is amended to read as 
follows: "There are authorized to be appropriated to carry out this 
subtitle $10,000,000 for fiscal year 1989 and $11,000,000 for fiscal 
year 1990.". 
Subtitle E—Miscellaneous Provisions 
Grants. 
42 u s e 11392 
note. 
SEC. 481. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY 
DWELLINGS. 
-Section 441(a) of the Stewart 
Act (42 U.S.C. 11401(a)) is 
(a) INCREASE IN BUDGET AUTHORITY. 
B. McKinney Homeless Assistance 
amended to read as follows: 
"(a) INCREASE IN BUDGET AUTHORITY.—The budget authority avail-
able under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(eX2) of such Act is authorized to be 
102 STAT. 3238 
PUBLIC LAW 100-628—NOV. 7, 1988 
42 use 11401 
note. 
42 u s e 11402. 
42 use 11301 
note. 
increased by $50,000,000 on or after October 1, 1988, and by 
$50,000,000 on or after October 1,1989.". 
(b) REHABIUTATION OF EFFICIENCY UNITS.—Section 441(b) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 114010))) 
is amended by inserting before the period at the end the following: 
", except that amounts made available under this section may be 
used in connection with the moderate rehabilitation of efficiency 
units if the building owner agrees to pay the additional cost of 
rehabilitating and operating such units. . 
(c) FIRE AND SAFETY IMPROVEMENTS.—Section 441(d) of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11401(d)) is 
amended by adding at the end the following new sentence: "For 
purposes of this subsection, the term 'major spaces' means hallways, 
large common areas, and other areas specified in local fire, building, 
or safety codes.". 
(d) ANNUAL ADJUSTMENT OF COST LIMITATION.— 
(1) ADJUSTMENT REQUIRED.—Section 441(e) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11401(e)) is 
amended by adding at the end the following new paragraph: 
"(3) The Secretary of Housing and Urban Development shall 
increase the limitation in paragraph (1) on October 1 of each 
year by an amount necessary to take into account increases in 
construction costs during the previous 12-month period.". 
(2) EFFECTIVE DATE.—TTie first increase under the amendment 
made by paragraph (1) shall be effective with respect to sissist-
ance provided on or after October 1,1988. 
SEC. 482. ADMINISTRATIVE PROVISIONS. 
(a) IN GENERAL.—Subtitle E of title IV of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11401 et seq.) is amended by 
adding at the end the following new section: 
"SEC. 443. ADMINISTRATIVE PROVISIONS. 
"The provisions of, and regulations and procedures applicable 
under, section 104(g) of the Housing and Community Development 
Act of 1974 shall apply to assistsmce and projects under this title.". 
(b) CONFORMING AMENDMENT.—The table of contents in section 
101(b) of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11301 prec.) is amended by inserting after the item relating to 
section 442 the following new item: 
"Sec. 443. Administrative provisions.". 
SEC. 483. REPORT ON EFFECT OF RENT CONTROL ON HOMELESSNESS. 
(a) IN GENERAL.—The Secretary of Housing and Urban Develop-
ment shall submit to the Congress a report evaluating the impact of 
local housing rent controls and regulations on the rate of 
homelessness, and on the development, supply, availability, and 
affordability of housing, in major cities in the United States. 
0)) SPECIFIC REQUIREMENTS.—The report required in this section 
shall include— 
(1) a listing of localities that have housing rent controls or 
regulations, the nature and extent of such controls or regula-
tions, and an assessment of the variance of such controls or 
regulations among localities; 
(2) an evaluation of the impact of such controls or regulations 
on the development, supply, and growth of affordable rental 
housing for lower income families, including an accounting of 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3239 
any increase or decrease in the supply of rental units that has 
occurred during the period of such controls or regulations; 
(3) an evaluation of the benefits and effectiveness of such 
controls or regulations in ensuring affordable rents for lower 
income families; 
(4) an evaluation of the relationship between the existence of 
such controls or regulations and Federal subsidized housing 
assistance in the locality, including whether such controls or 
regulations necessitate more or less Federal housing aid; 
(5) an evaluation of the impact on the resident population of 
removing such controls or regulations, including an assessment 
of potential rent increases on lower income residents, the op-
tions available to localities to mitigate any such increases, the 
potential increased demand for Federal subsidized housing 
assistance, and the impact on fair market rents in the locality; 
(6) an evaluation of the effect of such controls or regulations 
on commercial and nonrental housing development in the 
locality; 
(7) a demographic review of the income levels of the popu-
lation in controlled or regulated units; 
(8) an evaluation of the effect of such controls or regulations 
on the quality of controlled or regulated units; 
(9) an evaluation of compliance with such controls or regula-
tions by owners, maneigement, and residents of controlled or 
regulated units; 
(10) an evaluation of the administration and enforcement of 
such controls or regulations by local officials; 
(11) an evaluation of the impact of factors other than rent 
controls or regulations that affect the development of affordable 
housing in the locality; 
(12) a comparison to other localities that have not instituted 
such controls or regulations on the supply, development, avail-
ability, and affordability of rental housing; and 
(13) any other related issue the Secretary of Housing and 
Urban Development determines to be of interest or significance. 
(c) DEADUNE.—The Secretary of Housing and Urban Development 
shall submit the report required in this section within 12 months 
after the date of the enactment of this Act. 
SEC. 484. REPORT ON ALLOCATION FORMULAS. 
The Secretary of Housing and Urban Development shall— 
(1) examine whether an alternative system of distributing 
funds under title IV of the Stewart B. McKinney Homeless 
Assistance Act would be feasible to ensure that the funds are 
provided to the jurisdictions with the greatest need of assistance 
for the homeless; and 
(2) not later than March 1, 1989, transmit to the Congress a 
report on such examination. 
SEC. 485. REGULATIONS. 
42 USC 11301 
Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development or other Federal 
entity involved shall by notice establish such requirements as may 
be necessary to carry out the amendments made by titles I through 
IV and by section 501(2XB). The Secretary or other Federal entity 
involved shall issue regulations beised on the notice not later than 12 
months after the date of the enactment of this Act. 
102 STAT. 3240 
PUBLIC LAW 100-628—NOV. 7, 1988 
TITLE V—IDENTIFICATION AND USE OF 
SURPLUS FEDERAL PROPERTY 
SEC. 501. IDENTIFICATION AND USE OF UNUTILIZED AND UNDER 
UTILIZED PUBLIC BUILDINGS AND PROPERTY. 
Section 501 of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11411) is amended-
(1) 
by 
inserting 
"UNUTILIZED 
AND" 
before 
"UNDERUTILIZED" in the heading of such section; 
(2) in subsection (a)— 
(A) by inserting "unutilized or" before "underutilized"; 
(B) by inserting before "shall identify" a comma and 
"within 2 months after collecting such information,"; and 
(3) in subsection (b)— 
(A) in paragraph (1), by inserting after "agency's need" 
the following: "or to make the property available, on an 
interim basis, for use as facilities to assist the homeless"; 
and 
(B) in paragraph (2), by inserting after "be declared 
excess" the following, "or made available on an interim 
basis for use as facilities to assist the homeless"; and 
(4) in subsection (d)— 
(A) by striking out "BY LEASE" from the heading of such 
subsection; 
(B) by striking out paragraph (1) and inserting the 
following: 
"(1) The ownership of buildings and property made available 
under this section shall not be transferred from the Federal 
Government. Property identified pursuant to subsection (a)— 
"(A) which has been designated as surplus property, may 
be made available under this section only through the use 
of leases for at least 1 year; or 
"(B) which has not been so designated, may be made 
available for interim use by lease for at least 1 year or by 
permit."; and 
(C) in paragraph (2), by striking out "To permit leases of 
surplus Federal buildings and other real property under 
this section," and inserting in lieu thereof the following: 
"With respect to property identified under subsection (a) 
which has been designated as surplus property,". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3241 
TITLE VI—REVISION AND EXTENSION OF 
PROGRAMS OF HEALTH CARE FOR THE 
HOMELESS 
Subtitle A—Categorical Grants for Primary 
Health Services and Substance Abuse Services 
SEC. 601. INCREASE IN REQUIRED AMOUNT OF MATCHING FUNDS AND 
MODIFICATION IN ELIGIBILITY FOR WAIVER WITH RESPECT 
TO MATCHING FUNDS. 
(a) INCREASE IN REQUIRED AMOUNT.—Section 340(e)(1)(A) of the 
Public Health Service Act (42 U.S.C. 256(e)(1)(A)) is amended— 
(1) in clause (i), by striking "under the grant; and" and 
inserting the following: "for the first fiscal year of payments 
under the grant and 66% percent of the costs of providing such 
services for any subsequent fiscal year of payments under the 
grant; and"; and 
(2) in clause (ii), by striking "Federal funds" and all that 
follows and inserting the following: "Federal funds provided for 
the first fiscal year of pa5niients under the grant and not less 
than $1 (in cash or in kind under such subparagraph) for each 
$2 of Federal funds provided for any subsequent fiscal year of 
payments under the greint." 
(b) EFFECTIVE DATE FOR INCREASE.—The amendment made by 
42 use 256 note, 
subsection (a) shall take effect October 1,1989. 
(c) MODIFICATION IN EUGIBILITY FOR WAIVER.—Section 340(e)(2) of 
the Public Health Service Act (42 U.S.C. 256(e)(2)) is amended to 
read as follows: 
"(2) The Secretary may waive the requirement established in 
paragraph (1)(A) if the applicant involved is a nonprofit private 
entity and the Secretary determines that it is not feasible for the 
applicant to comply with such requirement.". 
SEC. 602. ESTABLISHMENT OF AUTHORITY FOR TEMPORARY CONTINUED 
PROVISION OF SERVICES TO CERTAIN FORMER HOMELESS 
INDIVIDUALS. 
(a) IN GENERAL.—Section 340 of the Public Health Service Act (42 
U.S.C. 256) is amended— 
(1) by redesignating subsections (h) through (q) as subsections 
(i) through (r), respectively; and 
(2) by adding after subsection (g) the following new subsection: 
"(h) TEMPORARY CONTINUED PROVISION OF SERVICES TO CERTAIN 
FORMER HOMELESS INDIVIDUALS.—If any grantee under subsection 
(a) has provided services described in subsection (f) or (g) to a 
homeless individual, any such grantee may, notwithstanding that 
the individual is no longer homeless as a result of becoming a 
resident in permanent housing, expend the grant to continue to 
provide such services to the individual for not more than 12 
months.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 340(dXl) of the Public Health Service Act (42 
U.S.C. 256(dXl)) is amended— 
(A) in subparagraph (C), by striking "(h)" and inserting 
"(i)"; 
102 STAT. 3242 
PUBLIC LAW 100-628—NOV. 7, 1988 
(B) in subparagraph (D), by striking "(i)" and inserting 
"0')"; 
(C) in subparagraph (E), by striking "(i)" and insertii^ 
"(k)";and 
(D) in subparagraph (F), by striking "(k)" and inserting 
(2) Section 332(aX3) of the Public Health Service Act (42 
U.S.C. 254e(aX3)) is amended by striking "340(qX2)" and insert-
ing "340(r)". 
(3) Section 536(1) of the Public Health Service Act (42 U.S.C. 
290cc-36(l)) is amended by striking "340(qX2)" and insertmg 
"340(r)". 
SEC. 603. CLARIFICATION WITH RESPECT TO CERTAIN PROVISIONS. 
(a) DEFINITION OF HOMELESS INDIVIDUAL.—Section 340(rX2) of the 
Public Health Service Act (as redesignated in section 602(aXl) of this 
title) is amended by striking "living accommodations." and inserting 
"living accommodations and an individual who is a resident in 
transitional housing.". 
(b) PROVISION OF TECHNICAL ASSISTANCE.—Section 340(oX2) of the 
Public Health Service Act (as redesignated in section 602(aXl) of this 
title) is amended by striking "(pXD, and inserting "(qXD for a fiscal 
year,". 
SEC. 604. AUTHORIZATION OF APPROPRIATIONS. 
Section 34(KqXl) of the Public Health Service Act (as redesignated 
in section 602(aXl) of this title) is amended by striking "There are 
authorized" and all that follows and inserting the following: "There 
are authorized to be appropriated to carry out this section 
$61,200,000 for fiscal year 1989, $63,600,000 for fiscal year 1990, and 
$66,200,000 for fiscal year 1991.". 
Subtitle B—Block Grant for Community 
Mental Health Services 
SEC. 611. AUTHORIZATION OF APPROPRIATIONS AND CONTINGENT 
CONVERSIONS TO CATEGORICAL PROGRAM. 
(a) IN GENERAL.—Section 535 of the Public Health Service Act (42 
U.S.C. 290CC-35) is amended to read as follows: 
"FUNDING 
"SEC. 535. (a) AUTHORIZATION OF APPROPRIATIONS.—For the pur-
pose of carrying out this part, there are authorized to be appro-
priated $35,000,000 for each of the fiscal years 1989 and 1990 and 
such sums as may be necessary for fiscal year 1991. 
"(b) 
EFFECT OF INSUFFICIENT APPROPRIATIONS FOR MINIMUM 
ALLOTMENTS.— 
state and local 
"(1) If the amounts made available pursuant to subsection (a) 
governments. 
are insufRcient for providing each State with an allotment 
under section 521(a) of not less than $150,000, the Secretary 
shall, from such amounts as are made available pursuant to 
such subsection, make grants to the States for providing to 
homeless individuals the mental health services described in 
section 524. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3243 
"(2) Paragraph (1) may not be construed to require the Sec-
retary to make a grant under such paragraph to each State.", 
(b) FAILURE OF STATE WITH RESPECT TO EXPENDING ALLOTMENT.— 
Section 529 of the Public Health Service Act (42 U.S.C. 290cc-29) is 
amended to read £is follows: 
CONVERSION TO STATE CATEGORICAL PROGRAM IN EVENT OF FAILURE 
OF STATE WITH RESPECT TO EXPENDING ALLOTMENT 
"SEC. 529. (a) IN GENERAL.—Subject to subsection (c), the Sec-
retary shall, from amounts described in subsection (b), make grants 
to public and nonprofit private entities for the purpose of providing 
to homeless individuals the mental health services described in 
section 524. 
"(b) DESCRIPTION OF FUNDS.—The amounts referred to in subsec-
tion (a) are any amounts made available in appropriations Acts for 
allotments under section 521(a) that are not allotted under such 
section to a State as a result of— 
"(1) the failure of the State to submit an application under 
section 522; 
"(2) the failure, in the determination of the Secretary, of any 
State to prepare within a reasonable period of time such ap-
plication in compligmce with such section; or 
"(3) the State informing the Secretary that the State does not 
intend to expend the full amount of the allotment made to the 
State. 
"(c) REQUIREMENT OF PROVISION OF SERVICES IN CERTAIN STATES.— 
With respect to grants under subsection (a), amounts made available 
pursuant to subsection (b) as a result of the State involved shall be 
available only for grants to provide services in such State.". 
SEC. 612. ELIGIBILITY OF TERRITORIES. 
(a) DEFINITION OF STATE.—Section 536(3) of the Public Health 
Service Act (42 U.S.C. 290cc-36(3)) is amended by striking "Colum-
bia," and all that follows and inserting the following: "Columbia, the 
Commonwealth of Puerto Rico, Guam, the Virgin Islands, American 
Samoa, and the Northern Mariana Islands.". 
(b) MINIMUM ALLOTMENT.—Section 528(aXl) of the Public Health 
Service Act (42 U.S.C. 290cc-28(aXl)) is amended to read as follows: 
"(1) $275,000 for each of the several States, the District of 
Columbia, and the Commonwealth of Puerto Rico and $50,000 
for each of Guam, the Virgin Islands, American Samoa, and the 
Northern Mariana Islands; and". 
SEC. 613. TECHNICAL AND CONFORMING AMENDMENTS. 
Title V of the Public Health Service Act (42 U.S.C. 290aa et seq.) is 
amended— 
(1) in section 521(a), by amending the first sentence to read as 
follows: "The Secretary shall for each of the fiscal years 1989 
through 1991 make an allotment for each State in an amount 
determined in accordance with section 528."; 
(2) in section 541(aX4), by striking "522" and inserting "543"; 
(3) in section 545(d), by striking "526" and inserting "547"; 
and 
(4) in section 546(aX4), by striking "521" and inserting "542". 
District of 
Columbia. 
42 use 
290CC-21. 
42 u s e 290dd. 
42 use 290ee. 
42 use 290ee-l. 
102 STAT. 3244 
PUBLIC LAW 100-628—NOV. 7, 1988 
Subtitle C—Authorization of Appropriations 
for Community Demonstration Projects 
SEC. 621. MENTAL HEALTH SERVICES FOR HOMELESS INDIVIDUALS 
WITH CHRONIC MENTAL ILLNESS. 
The first sentence of section 612(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 290aa-3 note) is amended to 
read as follows: "For pajmients pursuant to section 504(f) of the 
Public Health Service Act, there are authorized to be appropriated 
$11,000,000 for fiscal year 1989, $11,500,000 for fiscal year 1990, and 
such sums as may be necessary for fiscal year 1991, in addition to 
any other amounte authorized to be appropriated for such payments 
for each of such fiscal years.". 
SEC. 622. ALCOHOL AND DRUG ABUSE TREATMENT OF HOMELESS 
INDIVIDUALS. 
Section 513(b) of the Public Health Service Act (42 U.S.C. 
290bb-2(b)) is amended to read as follows: 
"(b) There are authorized to be appropriated to carry out section 
512(c) $14,000,000 for fiscal year 1989, $17,000,000 for fiscal year 
1990, and such sums as may be necessary for fiscal year 1991.". 
Subtitle D—General Provisions 
42 use 256 note. 
SEC. 631. EFFECTIVE DATES. 
The amendments made by subsection (a) of section 601 shall take 
effect in accordance with subsection (b) of such section. The amend-
ments otherwise made by this title shall take effect October 1,1988, 
or upon the date of the enactment of this Act, whichever occurs 
later. 
TITLE VII—EDUCATION, TRAINING, AND 
COMMUNITY SERVICES PROGRAMS 
Subtitle A—Homeless Assistance Programs 
SEC. 701. ADULT EDUCATION FOR THE HOMELESS. 
Contracts. 
(a) GENERAL AUTHORITY.— 
Grants. 
(1) IMPLEMENTATION.—Section 702(a) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11421(a)) is amended by 
striking "to develop a plan and implement a program" and 
inserting the following: "to implement, either directly or 
through contracts and grants, a program". 
(2) CONFORMING AMENDMENTS.— 
(A) SECTION HEADING.—The heading of section 702 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11421) is amended by striking "STATEWIDE" and inserting 
"STATE". 
(B) TABLE OP CONTENTS.—The item relating to section 702 
in the table of contents in section 101(b) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11301 prec.) 
is amended to read as follows: 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3245 
"Sec. 702. State literacy initiatives.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 702(cXl) of the 
Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 
11421(cXl)) is amended to read as follows: 
"(1) There is authorized to be appropriated $10,000,000 for 
each of the fiscal years 1989 and 1990 for the adult literacy and 
basic skills remediation programs authorized by this section.". 
(c) DEFINITION OF STATE.—Section 702(d) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11421(d)) is amended— 
(1) by striking "and"; and 
(2) by inserting before the period at the end the following: ", 
the Virgin Islands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands". 
SEC. 702. EDUCATION FOR HOMELESS CHILDREN AND YOUTH. 
(a) GRANTS FOR STATE ACTIVITIES.— 
(1) ALLOCATION.—Section 722(b) of the Stewart B. McKinney 
Territories, U.S. 
Homeless Assistance Act (42 U.S.C. 11432(b)) is amended by 
inserting before the period at the end the following: "and 0.1 
percent of the amount appropriated for each fiscal year shall be 
allocated by the Secretary among the Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern 
Mariana Islands". 
(2) TECHNICAL AMENDMENT.—Section 722(b) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11432(b)) is 
amended by striking "section 111" and all that follows through 
"of 1981)" and inserting "section 1005 of the Elementary and 
Secondary Education Act of 1965". 
(3) DATA GATHERING.—Section 722(dXl) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11432(dXl)) is 
amended by inserting "annually" before "gather". 
(4) REPORTS.—Section 722(dX3) of the Stewart B. McKinney 
,, Homeless Assistance Act (42 U.S.C. 11432(dX3)) is amended to 
read as follows: 
"(3) prepare and submit to the Secretary not later than 
December 31 of each year a report on the data gathered pursu-
ant to paragraph (1).". 
(5) AUTHORIZATION OF APPROPRIATIONS.—Section 722(gXl) of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11432(gXl)) is amended to read as follows: 
"(1) There is authorized to be appropriated to carry out this 
section $5,000,000 for each of the fiscal years 1989 and 1990.". 
0)) EXEMPLARY GRANTS AND DISSEMINATION OF INFORMATION.— 
Section 723(f) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11433(f)) is amended to read as follows: 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 
be appropriated to carry out this section $2,500,000 for each of the 
fiscal years 1989 and 1990.". 
(c) DEFINITION OF STATE.—Section 725(2) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11435(2)) is amended— 
(1) by striking "and"; and 
(2) by inserting before the period at the end the following: ", 
the Virgin Islands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands". 
102 STAT. 3246 
PUBLIC LAW 100-628—NOV. 7, 1988 
SEC 703. JOB TRAINING FOR THE HOMELESS. 
(a) DEFINITION OP STATE.—Section 737(5) of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11447(5)) is amended— 
(1) by striking ''and" and inserting a comma; and 
(2) by inserting before the period at the end the following: ", 
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern 
Mariana Islands". 
(b) AuTHOBiZATiON O
F APPROPRIATIONS.—Section 739(aXl) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11449(aXl)) is amended to read as follows: 
"(1) There is authorized to be appropriated to carry out this 
subtitle $13,000,000 for each of the fiscal years 1989 and 1990, of 
which amount $2,200,000 for each fiscal year shall be available 
only to carry out section 738.". 
(c) RATABLE REDUCTIONS.—Section 739(aX2) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11449(aX2)) is 
amended— 
(1) by striking "in fiscal year 1988" and inserting "for any 
fiscal year"; and 
(2) by striking "$12,000,000" and inserting "the amount 
authorized in paragraph (1)". 
SEC 704. EMERGENCE C
O
M
B
I
U
N
I
T
Y SERVICES HOMELESS G
R
A
N
T 
PROGRAM. 
State and local 
(a) A
L
L
O
C
A
T
I
O
N OF GRANTS.—^The second sentence of section 752(a) 
governments. 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11462(a)) is amended to read as follows: "Such grants shall be 
allocated to the States (as defined in section 673 of such Act) in 
accordance with the formulas set forth in subsections (a) and (b) of 
section 674 of such Act.". 
(b) PROGRAM REQUIREMENTS.— 
(1) ADDITIONAL ELIGIBLE USE OF FUNDS.—Section 753(c) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11463(c)) is amended by adding at the end the following new 
paragraph: 
Utilities. 
"(4) Provision of assistance to any individual who has received 
a notice of foreclosure, eviction, or termination of utility serv-
ices, if— 
"(A) the inability of the individual to make mortgage, 
rental, or utility payments is due to a sudden reduction in 
income; 
"(B) the assistance is necessary to avoid the foreclosure, 
eviction, or termination of utility services; and 
"(C) tJiere is a reasonable prospect that the individual 
will be able to resume the payments within a reasonable 
period of time.". 
(2) MAXIBfUM AMOUNT AVAILABLE FOR ADDITIONAL ELIGIBLE 
USE.—Section 753(b) of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11463(b)) is amended— 
(A) by striking "and" at the end of paragraph (2); 
(B) by striking the period at the end of paragraph (3) and 
inserting "; and ; and 
(C) by adding at the end the following new paragraph: 
"(4) not more than 25 percent of the amounts received will be 
used for the purpose described in subsection (cX4).". 
(c) TIMELY AWARDING OF FUNDS.— 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3247 
(1) 60-DAY REQUIREMENT FOR AWARDING FUNDS.—Section 
753(bXlXA) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11463(bXlXA)) is amended in the matter preced-
ing clause (i) by inserting £dfter "receives" the following: ", by 
not later than 60 days after such receipt,". 
(2) COMPLIANCE WTTH 60-DAY REQUIREMENT.—Section 753 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11463) is amended by adding at the end the following new 
subsection: 
"(d) COMPLIANCE WITH 60-DAY REQUIREMENT.—^It shall be left 
solely to the discretion of the Secretary to enforce the 60-day 
requirement specified in subsection (bXlXA).". 
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 754 of the Stew-
art B. McKinney Homeless Assistance Act (42 U.S.C. 11464) is 
amended to read as follows: 
"SEC. 754. AUTHORIZATION OF APPROPRIATIONS. 
"There is authorized to be appropriated to carry out this subtitle 
$42,000,000 for each of the fiscal years 1989 and 1990.". 
SEC. 705. TECHNICAL AMENDMENTS TO OLDER AMERICANS ACT OF 1965. 
The Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) is 
amended— 
(1) in section 102— 
42 use 3002. 
(A) by redesignating paragraphs (8) and (9), as added by 
section 146(a) of the Older Americans Act Amendments of 
1987 (Public Law 100-175; 101 Stat. 950), as paragraphs (10) 
and (11), respectively; and 
(B) by redesignating paragraph (8), as added by section 
182(bXl)(B) of the Older Americans Act Amendments of 
1987 (PubUc Law 100-175; 101 Stat. 964), as paragraph (12); 
(2) in section 204(aXl), by inserting a comma after "minori- 
42 use 3015. 
ties"; 
(3) in section 301(a), by striking "Hawaiian organizations,," 
42 use 3021. 
and inserting "Hawaiian organizations,"; 
(4) m section 305— 
42 use 3025. 
(A) in subsection (aXl)(E), by striking "such areas,," and 
inserting "such areas,"; and 
(B) in subsection (d), by redesignating subparagraphs (A), 
(B), (C), and (D) as paragraphs (1), (2), (3), and (4), respec-
tively; 
(5) in section 306(aXl), by striking "such area,," and inserting 
42 use 3026. 
"such area,"; 
(6) in section 307(aX3XA), by striking "; and" and inserting a 
42 use 3027. 
period; 
(7) in section 411(c), by striking "disease and and" and insert- 
42 use 3031. 
ing "disease and"; 
(8) in section 4220))— 
42 use 3035a. 
(A) in paragraph (1), by striking "Alzheimers' disease and 
other neurological and organic disorders of the Alzheimers' 
type" and inserting "Alzheimer's disease and related dis-
orders with neurological and organic brain dysfunction"; 
and 
(B) in paragraph (9XB), by striking "ACTION" and insert-
ing "the ACTION Agency"; and 
(9) in section 507(3), by adding "; and" at the end. 
42 use 3056e. 
102 STAT. 3248 
PUBLIC LAW 100-628—NOV. 7, 1988 
iohs for 
Subtitle B—^Job Training Partnership Act 
Employable 
Dependent 
Individuals 
SEC 
711. SHOBT TITLE. 
Act 
29 use 1501 
This subtitle may be cited as the "Jobs for Employable Dependent 
note. 
Individuals Act". 
SEC. 
712. INCENTIVE BONUS ENTITLEMENT FOR EMPLOYABLE DEPEND-
ENT INDIVIDUALS. 
(a) AMENDMENTS TO JTPA.—The Job Training Partnership Act (29 
U.S.C. 1501 et seq.) (hereinafter in this title referred to as the "Act") 
is amended— 
29 use 49. 
(1) by redesi^iating title V and all references thereto as title 
VI, 
29 use 49a, 
49b, 
(2) by redesignating sections 501, 502, 503, and 504 as sections 
49d-49j, 49/, 
601, 602,603, and 604, respectively, and 
tfjJ^isTm 
^^^ ^y inserting after title IV the foUowing new title: 
602; 
29 
USC 
^t^i a
n
d l
o
c
a
l "TI^LE 
V-JOBS 
FOR 
EMPLOYABLE 
governments 
DEPENDENT INDIVIDUALS INCENTIVE 
BONUS PROGRAM 
29 use 1791. 
*«EC. 501. STATEMENT OF PURPOSE. 
"It is the purpose of this title to entitle each State to the payment 
of a bonus for the successful job placement of certain employable 
dependent individuals. 
29 use 1791a. 
"^EC. 502. DEFINITIONS. 
"For the purpose of this title— 
"(1) tlie term 'welfare assistance' means— 
"(A) cash paynients made pursuant to part A of title IV of 
the Social Security Act (relating to the aid to families with 
dependent children program); 
(B) general welfare assistance to Indians, as provided 
pursuant to the Act of November 2, 1921 (25 U.S.C. (13)), 
commonly referred to as the Snyder Act; or 
"iO cash assistance and medical assistance for refiijgees 
made available pursuant to section 412(e) of the Immigra-
tion and Nationality Act; 
"(2) the term 'disability assistance' means benefits ofTered 
pursuant to title XVI of the Social Security Act (relating to the 
supplemental security income program); 
'(3) the term long-term recipient' means an individual who 
has received the benefits described in paragraphs (1) and (2) for 
24 months during the 28-month period immediately preceding 
application for programs offered under this title; 
'(4) the term 'continuous employment' means gainful employ-
ment under which wages or salaries are reportable for un-
employment insurance purposes, and such wages or salaries are 
earned during a total of 4 out of 5 consecutive calendar quar-
ters; 
"(5) the term 'supported employment' has the meaning given 
such term by section 7(18) of the RehabiUtation Act of 1973; 
and 
"(6) the term 'Federal contribution' means the amount of the 
Federal component of cash payments to individuals within the 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3249 
participating State under the prt^rams described in this sec-
tion, including part A of title IV of the Social Security Act. 
"SEC. 503. EUGIBILITY FOR INCENTIVE BONUSES. 
29 USC 1791b. 
"(a) IN GENERAL.—An individual shall be eligible to be counted for 
the purpose of this title if— 
"(1) the individual is— 
"(A) an eligible long-term recipient described in subsec-
tion (b); 
"(B) an eligible young recipient described in subsection 
(0; 
"(C) an eligible blind or disabled recipient described in 
subsection (d); or 
"(D) an eligible young blind or disabled recipient de-
scribed in subsection (e); and 
"(2) the individual has met the requirements of section 504. 
"fli>) LONG-TERM RECIPIENT,—An eligible long-term recipient is an 
individual who— 
"(1) is a long-term recipient of welfare assistance; 
"(2) is the head of a household; and 
"(3) had no marketable or significant work experience during 
the year preceding determination of el^bility for pn^ams 
under this Act. 
"(c) YOUNG RECIPIENT.—An eligible young recipient is an individ-
ual who— 
"(1) is receiving welfare assistance at the time determination 
of eligibility is made for pn^ams under this Act; 
"(2) is the head of a household; 
"(3) has not attained 22 years of age; 
"(4) has not completed secondary school or its equivalent; and 
"(5) had no marketable or significant work experience during 
the year preceding determination of eligibility for programs 
under this Act. 
"(d) BLIND OR DISABLED RECIPIENT.—^An eligible blind or disabled 
recipient is an individual who— 
"(1) is blind or disabled; 
"(2) is a long-term recipient of disability assistance; and 
"(3) had no marketable or significant work experience during 
the year preceding determination of eligibility for pn^ams 
offered under this Act. 
"(e) YOUNG BUND OR DISABLED RECIPIENT.—An eligible young 
blind or disabled recipient is an individual who— 
"(1) is blind or disabled; 
"(2) is receiving disability assistance at the time determina-
tion of eligibility is made for programs under this Act; 
"(3) has not attained 22 years of age; and 
"(4) had no marketable or significant work experience during 
the year preceding such determination of eligibility. 
"SEC. 504. ADDITIONAL ELIGIBILITY REQUIREMENTS. 
29 USC 1791c. 
"(a) IN GENERAL.—An individual described in section 503 may not 
be considered eligible to be counted for the purpose of payment of an 
incentive bonus under this title unless such individual— 
"(1) has successfully participated in education, training, or 
other activities offered under this Act; 
"(2) has been placed in (A) unsubsidized, continuous employ-
ment or (B) supported employment following such participation; 
102 STAT. 3250 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(3) receives from such employment a wage or income which 
is greater than or equal to such individual s placement bonus 
base; and 
"(4) no longer receives cash benefits provided under the assist-
ance programs described in paragraphs (1) and (2) of section 502, 
unless receipt of such benefits— 
"(A) is limited to 1 calendar quarter (or an equivalent 
period) during the 5 calendar quarters used to determine 
continuous employment; and 
"(B) is caused by a termination of emplojmient due to— 
"(i) a layoff or permanent closure of a plant or 
facility; 
"(ii) a relocation of Federal facilities; or 
"(iii) a natural disaster. 
"(b) QuAUFiED EARNINGS.—An individual shall be considered to 
be earning a wage or income which meets the requirements of 
subsection (aX3) if, during a period of continuous employment, the 
individual earns an income reportable for unemployment insurance 
purposes and does not receive cash benefits under the programs 
described in section 502. 
"(c) EDUCATIONAL REQUIREMENTS.—An individual described in sec-
tion 503 (c) or (e) shall be considered to have met the requirements of 
subsection (a)(1) if the individual no longer receives welfare assist-
ance and— 
"(1) reenroUs in secondary school or its equivalent and 
matriculates to the next grade level or its equivalent within 1 
year of enrollment; 
"(2) enrolls in an accredited vocational or technical school not 
less than full time and is making satisfactory progress in a 
course of study which can reasonably be expected to lead to 
emplo5nnent; or 
(3) obtains the equivalent of a secondary school diploma 
within 12 months following the individual's determination of 
eligibility for programs offered under this title. 
29 use 1791d. 
"SEC. 505. AMOUNT OF INCENTIVE BONUS. 
"(a) IN GENERAL.—The amount of the incentive bonus paid to each 
State shall be equal to the sum of— 
"(1) 75 percent of the placement bonus base for each success-
ful placement in emplo3mient of an individual described in 
section 503; 
"(2) 75 percent of the placement bonus base for the second 
continuous year of such employment; and 
"(3) 75 percent of the placement bonus base for the third 
continuous year of such employment, 
in excess of the number of such placements made in program year 
1987 or such other base period as provided by agreement between 
the Governor and the Secretary. 
"(b) PLACEMENT BONUS BASE FOR PURPOSES OF SECTION 503 db) AND 
(c).—For the purpose of this section, the placement bonus base— 
"(1) for an individual who qualifies under section 5030)) is 
equEd to the sum of the Federal contribution to amounts re-
ceived by the individual and the family of such individual under 
a State plan approved under part A of title IV of the Social 
Security Act, relating to aid to families with dependent chil-
dren, or under section 412(e) of the Imm^ation and National-
ity Act, relating to cash assistance and medical assistance to 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3251 
refugees, or both, for the 2 fiscal years prior to the determina-
tion made under section 503 divided by 2; and 
"(2) for an individual who qualifies under section 503(c) shall 
be the annual amount to which such individual would have 
been entitled for 1 year at the time of the determination of 
eligibility of the individual, if such individual has not received 
the benefits described in section 502(1XA) for the prior year, 
under part A of title IV of the Social Security Act, relating to 
the aid to families with dependent children program, or section 
412(e) of the Immigration and Nationality Act relating to cash 
assistance and medical assistance to refugees. 
"(c) PLACEMENT BONUS BASE FOR PURPOSES OF SECTION 503 (d) AND 
(e).—For the purpose of this section, the placement bonus base— 
"(1) for an individual who qualifies under section 503(d) is 
equal to the sum of the Federal contribution to amounts re-
ceived by the individual under title XVI of the Social Security 
Act relating to supplemental security income for the 2 fiscal 
years prior to the determination made under section 503 divided 
by 2; and 
"(2) for an individual who qualifies under section 503(e) shall 
be the annual amount to which such individual would have 
been entitled for 1 year at the time of the determination of 
eligibility of the individual, if such individual has not received 
the benefits described in section 502(2) for the prior year under 
title XVI of the Social Security Act, relating to supplemental 
security income. 
"SEC. 506. APPLICATIONS AND VERIFICATION REQUIRED. 
29 USC 1791e. 
"(a) NOTICE OF INTENT TO PARTICIPATE.—Any State seeking to 
participate in the incentive bonus program established under this 
title shall notify the Secretary of its intent to do so not later than 30 
days before the beginning of its first program, year of participation. 
'(b) APPUCATION.—(1) Any State seeking to receive an incentive 
bonus under this title shall submit an application to the Secretary. 
Such application shall contain or be accompanied by such informa-
tion and assurances as the Secretary may reasonably require in 
order to ensure compliance with this title. Each application shall 
contain, at a minimum— 
"(A) the placement bonus base for eligible individuals who 
serve to qualify the State for an incentive bonus; and 
"(BXi) a brief description of the unsubsidized employment or 
supported employment of such individuals; or 
"(ii) a description of participation in educational activities, as 
permitted under section 504, by such individuals. 
"(2) The application to participate in the incentive bonus program 
shall be submitted to the Secretary according to a schedule estab-
lished by the Secretary in order to facilitate and expedite the 
processing, verification, and prompt payment of incentive bonuses. 
"(c) NOTICE OF APPROVAL OR DENIAL.—The Secretary shall inform 
a State within 60 days after receipt of the application as to whether 
or not its application has been approved. "Die Secretary may not 
approve an application for payment of an incentive bonus without 
adequately verifying the accuracy of the information contained in 
the application. There shall be a rebuttable presumption that an 
individual is eligible to be counted for the purpose of pa3mient of an 
incentive bonus under this title. When appropriate, the Secretary 
102 STAT. 3252 
PUBLIC LAW 100-628—NOV. 7, 1988 
may use a sampling methodology for such verifications in a manner 
approved by the Comptroller General of the United States. 
"(d) SERVICE DEUVERY AREA PARTICIPATION.—Participation by a 
State in the incentive bonus program established under this title 
shall not prevent any service delivery area within the State from 
refusing to participate in such program. 
29 use 1791f. 
"SEC. 507. PAYMENTS. 
"(a) IN GENERAL.—For each program year for which funds are 
appropriated to carry out this title, the Secretary shall pay to each 
participating State the amount that State is eligible to receive under 
this section. 
"(b) RATABLE REDUCTIONS.—If the amount so appropriated is not 
sufficient to pay to each State the amount each State is eligible to 
receive, the Secretary shall ratably reduce the amount paid to each 
State. 
"(c) RATABLE INCREASES.—If any additional amount is made avail-
able for carrying out this title for any program year after the 
application of the preceding sentence, such additional amount shall 
be allocated among the States by increasing such payments in the 
same manner as they were reduced, except that no such State shall 
be paid an amount which exceeds the amount which it is eligible to 
receive under this section. 
29 use 1791g. 
"SEC. 508. USE OF INCENTIVE BONUS FUNDS. 
"(a) USE OF INCENTIVE BONUS FUNDS.—After submission and ap-
proval of an application for an incentive bonus payment and before 
receipt of such payment, the Governor of such State may reserve 
from State funds an amount equal to the amount of a bonus 
incentive requested in the application for the purpose of making 
expenditures in accordance with this title. Bonus pa5mtients received 
thereafter may be used for reimbursement of such expenditures. 
"(b) LIMITATIONS.—(1)(A) During any program year, the Governor 
may use an amount not to exceed 15 percent of the State's total 
bonus pajmients or amounts reserved under subsection (a) for 
administrative costs incurred under this title, including data and 
information collection and compilation, recordkeeping, or the 
preparation of applications for incentive bonuses. 
Contracts. 
"(B) The amount of incentive bonus payments or the amounts 
reserved under subsection (a) which remain after the deduction of 
administrative expenses under paragraph (1) shall be distributed to 
service delivery areas within the State in accordance with an agree-
ment between the Governor and representatives of such areas. Such 
agreement shall reflect an equitable method of distribution which is 
based on the degree to which the efforts of such area contributed to 
the State's qualification for an incentive bonus pajnnent under this 
title. 
"(2)(A) Subject to subparagraph (B), a maximum of 10 percent of 
the amounts received under this title in any program year by each 
service delivery area may be used for the administrative costs of 
establishing and maintaining systems necessary for operation of 
programs under this title, including incentive payments described in 
subsection (c), technical assistance, data and information collection 
and compilation, management information systems, post-program 
foUowup activities, and research and evaluation activities. The bal-
ance of funds not so expended shall be used for activities similar to 
activities described in section 204. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3253 
"(B) If a service delivery area determines that administrative 
costs under this title will exceed the 10 percent administrative 
allocation, such area may use an additional 5 percent allocation of 
bonus pajonents or amounts reserved under subsection (a) for such 
activities if such area demonstrates to the Governor that the admin-
istering agency in the area needs additional funds to continue 
administrative activities under this title. 
"(c) INCENTIVE PAYMENTS TO SERVICE PROVIDERS.—Each service 
delivery area may make incentive parents to service providers 
within its service delivery area, including participating State and 
local agencies, and communi^-based organizations, that dem-
onstrate effectiveness in delivering employment and training serv-
ices to individuals such as those described in section 503. 
"(d) APPUCATION OP SECTION RELATING TO ADMINISTRATIVE AD-
JUDICATIONS.—Section 166 of this Act, relating to administrative 
adjudication, shall apply to the distribution of incentive bonus pay-
ments under this section. 
"SEC. 509. INFORMATION AND DATA COLX£CTION. 
"(a) TECHNICAL ASSISTANCE.—In order to facilitate the collection, 
exchange, and compilation of data and information required by this 
title, the Secretary shall, within 90 days after the date of enactment 
of this title, b^in providing, on an ongoing basis, technical assist-
ance to the States. Such assistance shall include, at a minimum, 
cost-effective methods for using State and Federal records to which 
the Secretary has lawful access. 
"0)) REGULATIONS.—The Secretary, the Secretary of Health and 
Human Services, and the Secretary of the Interior jointly shall issue 
regulations r^arding the shaiing, among States participating in the 
programs under this title, of the data and information necessary to 
fulfill the requirements of this title. Such r^ulations shall provide 
for— 
"(1) the maintenance of confidentiality of the information so 
shared, in accordance with Federal and State privacy laws, and 
"(2) penalties for any violation of such r^ulations. 
"(c) ANNUAL SURVEY.—^The Secretary shall conduct an annual 
survey of States participating in programs under this title and shall 
report to the 0>ngress concerning— 
"(1) the success of such States in gathering the data and 
information required under this title; and 
"(2) methods for improving and refining the ability of such 
States to gather the data and information required under this 
title. 
"SEC. 510. START-UP COSTS. 
"(a) APPUCATION.—^Before notifying the Secretary of an intent to 
participate in the incentive bonus program established under this 
title, a State may apply to the Secretary for financial assistance in 
accordance with this section. Such application shall be submitted to 
the Secretary not later than 120 days before the b^inning of the 
prc^am year. 
"(b) CONTENTS.—Applications submitted under this section shall 
contain such information as the Secretary may reasonably require. 
"(c) DETERMINATIONS OF AWARDS.—(1) The Secretary shall deter-
mine the amounts to be awarded based on the need demonstrated in 
the application submitted by the State. 
29 use 1791h. 
Records. 
Classified 
information. 
Reports. 
29 use 1791i. 
102 STAT. 3254 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(2) The Secretary shall notify the State of the determination 
made under this section no later than 60 days after receiving such 
State's application. 
"(3XA) Funds received by a State under this section shall be 
available for expenditure for the first 2 program years of such 
State's participation under this title, beginning with the program 
year following the program year in which a determination under 
this section is made. Expenditure of such funds (or any portion 
thereof) shall be considered an agreement by the State to participate 
in accordance with this title for a period of not less than 2 consecu-
tive program years, beginning with the first program year in which 
such funds become available for expenditure. 
"(B) Funds awarded to the State which remain unexpended at the 
end of such 2 program years shall be reallocated by the Secretary to 
other participating States. 
"(C) Funds received under this section by the State shall be used 
for activities such as those described in section 508(b) and for higher 
costs incurred in overcoming the substantial barriers to employment 
experienced by individuals eligible under this title. 
'(d) ALLOCATION.—Funds received under this section may be allo-
cated to State agencies or service delivery areas within the State for 
expenditure in accordance with this title. 
(e) NOTICE OF PROPOSED RULEMAKING.—Not later than 3 months 
after the date of the enactment of this title, the Secretary shall issue 
a notice of proposed rulemaking with respect to this title and shall 
allow not less than 60 days for public comment. Final regulations 
shall be issued not later than 7 months following such date of 
enactment. 
29 use 1791J. 
"SEC. 511. EVALUATION AND PERFORMANCE STANDARDS. 
"(a) EVALUATION.—The Secretary shall conduct or provide for an 
evaluation of the incentive bonus program authorized under this 
title. The Secretary shall consider— 
"(1) whether the program results in increased service under 
this Act to long-term welfare recipients and other hard-to-serve 
individuals; 
"(2) whether the program results in sustained employment of 
such welfare recipients and individuals, with resultant welfare 
and other cost savings to the Federal Government; 
"(3) whether the program is administratively feasible and cost 
effective; 
"(4) whether the services provided to other eligible partici-
pants under part A of title II are affected by the implementa-
tion and operation of the incentive bonus program; and 
"(5) such other factors as the Secretary deems appropriate. 
"Ot)) REPORT TO CONGRESS.—Not later than January 1, 1996, the 
Secretary shall report to the Congress on the effectiveness of the 
incentive bonus program authorized under this title. Such report 
shall include an analysis of the costs of such program and the 
results of such activities. 
"(c) PERFORMANCE STANDARD.— The Secretary shall establish a 
performance standard which weights performance outcomes under 
this title to reflect the higher costs incurred in overcoming the 
substantial barriers to employment experienced by individuals eli-
Reports. 
gible under this title. Not later than 2 years after the first program 
year, the Secretary shall prepare and submit to the Congress a 
report on the effect of such standard.". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3255 
OJ) TABLE OF CONTENTS AMENDMENT.—^The table of contents of the 
Act is amended by inserting after the items relating to title IV the 
following new items: 
"TITLE V-JOBS FOR EMPLOYABLE DEPENDENT INDIVTOUALS INCENTIVE 
BONUS PROGRAM 
"Sec. 501. Statement of purpose. 
"Sec. 502. Definitions. 
"Sec. 503. Eligibility for incentive bonuses. 
"Sec. 504. Additional eligibility requirements. 
"Sec. 505. Amount of incentive bonus. 
"Sec. 506. Applications and verification required. 
"Sec. 507. Payments. 
"Sec. 508. Use of incentive bonus funds. 
"Sec. 509. Information and data collection. 
"Sec. 510. Start-up costs. 
"Sec. 511. Evaluation and performance standards.". 
SEC 713. PROVISIONS FOR IMPROVING ASSISTANCE TO HARD-TO-SERVE 
INDIVIDUAIS AND WELFARE RECIPIENTS. 
(a) GOVERNORS' INCENTIVE GRANTS.—^The first sentence of section 
202(bX3XB) of the Act (29 U.S.C. 1602(bX3XB)) is amended by striking 
out ", including incentives for serving hard-to-serve individuals' 
and inserting in lieu thereof "and incentives for serving increased 
numbers of hard-to-serve individuals, particularly long-term welfare 
recipients, including title IV of the Social Security Act, relating to 
aid to families with dependent children, and title XVI of such Act, 
relating to supplemental security income". 
(b) PERFORBCANCE STANDARDS.—Section 106(e) of the Act (29 U.S.C. 
1516) is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) The Secretary shall— 
"(A) provide improved information and technical assistance 
on performance standards adjustments; 
' (B) collect data that better specifies hard-to-serve individuals 
and long-term welfare dependency; and 
"(Q provide guidance on setting performance goals at the 
service provider level that encourages increased service to the 
hard-to-serve, particularly long-term welfare recipients, includ-
ing title IV of the Social Security Act, relating to aid to families 
with dependent children, and title XVI of such Act, relating to 
supplemental security income. 
The Secretary shall also reexamine performance standards to 
ensure that such standards provide maximum flexibility in serving 
the hard-to-serve, particularly long-term welfare recipients, includ-
ing title IV of the Social Security Act, relating to aid to families 
with dependent children, and title XVI of such Act, relating to 
supplemental security income.". 
SEC 714. CONFORMING AND MISCELLANEOUS AMENDBIENTS. 
(a) CONTENTS OF JOB TRAINING PLAN.—Section 104(b) of the 
Act (29 U.S.C. 1514(b)) (as amended by subsection (b)) is further 
amended— 
(1) by redesignating paragraphs (7), (8), (9), (10), and (11) as 
paragraphs (8), (9), (10), (11), and (12), respectively; and 
(2) by adding after paragraph (6) the following new para-
graph: 
102 STAT. 3256 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(7) a description of the procedures and methods of carrying 
out title V, relating to incentive bonus pajrments for the place-
ment of individuals eligible under such title;". 
(b) PERFORMANCE STANDARDS.—Section 106(b) of the Act (29 U.S.C. 
1516(b)) is amended by adding at the end thereof the following new 
paragraph: 
"(5) The Secretary shall prescribe performance standards under 
this section for programs authorized by title V, relating to the 
placement of individuals eligible under such title, in accordance 
with the criteria specified in section 511(c).". 
(c) PLAN COORDINATION.—Section 121(b) of the Act (29 U.S.C. 
1531(b)) is amended— 
(1) by redesignating paragraphs (3) and (4) as paragraphs (4) 
and (5), respectively; and 
(2) by adding after paragraph (2) the following new para-
graph: 
"(3) The State plan shall include a description of the manner in 
which the State will encourage the successful carr3dng out of— 
"(A) training activities for eligible individuals whose place-
ment is the basis for the payment to the State of the incentive 
bonus authorized by title V; and 
"(B) the training services, outreach activities, and pre-
employment supportive services furnished to such individuals.". 
(d) AUTHORIZATION OF APPROPRIATIONS.-Section 3 of the Act (29 
U.S.C. 1502) is amended— 
(1) by redesig^nating subsection (e) as subsection (f); and 
(2) by inserting after subsection (d) the following new sub-
section: 
"(eXD Subject to paragraph (2), there are authorized to be appro-
priated for each of fiscal years 1990 through 1994 such sums as may 
be necessary to carry out title V. 
"(2) No funds appropriated pursuant to this Act may be used to 
carry out such title for any fiscal year unless funds appropriated to 
carry out part A of title II exceed any change in the consumer price 
index from the amounts appropriated for the previous fiscal year to 
carry out such part. 
"(3) From amounts authorized to be appropriated for title V 
pursuant to paragraph (1), not more than $5,000,000 may be used for 
purposes of section 510 of such title.". 
(e) CONSTRUCTION.—(1) Part D of title I of the Act (29 U.S.C. 1571 
et seq.) is amended by adding at the end thereof the following new 
section: 
29 use 1583. 
"SEC. 172. CONSTRUCTION. 
"(a) EuGiBiUTY.—Nothing in this Act shall be construed to limit 
the right of persons to remain eligible for assistance under title XIX 
of the Social Security Act, relating to Medicaid pursuant to section 
1619(b) of such Act. 
"fl[)) USE OF FUNDS.—Nothing in this Act shall be construed to 
authorize the use of funds under this Act for the ongoing support 
services provided to handicapped individuals placed in supported 
employment, as such term is defined in section 7(18) of the Re-
habilitation Act of 1973.". 
(2) The table of contents of the Act is amended by inserting after 
the item relating to section 171 the following new item: 
"Sec. 172. Construction.". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3257 
TITLE VIII—VETERANS PROGRAMS 
SEC 801. MEDICAL PROGRAMS. 
(a) AUTHORIZATION OF APPROPRIATIONS.—^There is hereby au-
thorized to be appropriated to the Veterans' Administration for each 
of fiscal years 1989 and 1990, in addition to any funds appropriated 
pursuant to any other authorization (whether definite or indefinite) 
of appropriations for those fiscal years, the sum of $30,000,000 for 
the medical care of veterans by the Veterans' Administration. 
(b) DOMICILIARY CARE.—Of the amount appropriated pursuant to 
subsection (a), 50 percent shall be available for— 
(1) converting to use for domiciliary care beds the underused Urban areas. 
space located in facilities under the jurisdiction of the Adminis-
trator of Veterans' Affairs in urban areas in which there are 
significant numbers of homeless veterans; and 
(2) furnishing domiciliary care in such beds to eligible veter-
ans (primarily homeless veterans) who are in need of such care. 
(c) CmoNiCALLY MENTALLY I I I HOMELESS VETERANS.—Of the 
amount appropriated pursuant to subsection (a), 50 percent shall be 
available for furnishing care and treatment and rehabilitative serv-
ices under section 115 of the Veterans Benefits and Services Act of 
1988 (Public Law 100-322; 102 Stat. 501) to homeless veterans who 
have a chronic mental illness disability. Not more than $500,000 of 
the amount available under the preceding sentence shall be used for 
the purpose of monitoring the furnishing of such care and services 
and, in furtherance of such purpose, maintaining in the Veterans' 
Administration the equivalent of 10 ftill-time employees. 
(d) LIMITATION.—^Nothing in this section shall result in the 
diminution of the conversion of hospital-care beds to nursing-home-
care beds by the Veterans' Administration. 
TITLE 
IX—AID 
TO FAMILIES 
WITH 
DEPENDENT 
CHILDREN; UNEMPLOY-
MENT COMPENSATION 
SEC 901. EXTENSION OF PROHIBITION AGAINST IMPLEMENTATION OF 
CERTAIN PROPOSED REGULATIONS. 
Section 9118 of the Omnibus Budget Reconciliation Act of 1987 (42 
U.S.C. 1383c) is amended by striking "October 1,1988" and inserting 
"September 30,1989". 
SEC. 902. REVIEW OF POUCY GOVERNING USE OF AFDC FUNDS TO MEET 
EMERGENCY NEEDS OF FAMILIES EUGIBLE FOR AFDC 
THROUGH EMERGENCY ASSISTANCE OR SPECIAL NEEDS PAY-
MENTS; REPORT TO CONGRESS. 
(a) REVIEW OF POLICY.—^The Secretary of Health and Human 
Services shall review the policies in effect, as of the date of the 
enactment of this section, with respect to the use by States of 
amounts paid to such States under the program of aid to families 
with dependent children imder part A of title IV of the Social 
Security Act, in the form of payments of aid to meet special needs or 
emergency assistance under section 4()6(e) of such Act to meet 
emergency needs of families who are eligible for such aid. 
State and local 
governments. 
102 STAT. 3258 
PUBLIC LAW 100-628—NOV. 7, 1988 
Housing. 
42 u s e 11381 
note. 
Grants. 
(b) REPORT TO CONGRESS.—Not later than July 1, 1989, the Sec-
retary of Health and Human Services shall submit to the Congress a 
report containing recommendations for legislative and regulatory 
changes designed to— 
(1) improve the ability of the program of aid to families with 
dependent children under part A of title IV of the Social 
Security Act to respond to emergency needs of families who are 
eligible for such aid; and 
(2) eliminate the use of funds provided to States under such 
program to pay for the provision of shelter in commercial or 
similar transient facilities. 
SEC. 903. DEMONSTRATION PROJECTS TO REDUCE NUMBER OF HOME-
LESS AFDC FAMILIES IN WELFARE HOTELS. 
(a) IN GENERAL.—In order to enable States to provide housing for 
homeless families who are recipients of aid to families with depend-
ent children under a State plan approved under part A of title IV of 
the Social Security Act in transitional facilities instead of in 
commercial or similar transient facilities, at least 2 but not more 
than 3 States may undertake and carry out demonstration projects 
in accordance with this section. States may use public or private 
nonprofit agencies in canying out demonstration projects in accord-
ance with this section. Etemonstration projects under this section 
shall meet such conditions and requirements as the Secretary of 
Health and Human Services (in this section referred to as the 
"Secretary") shall prescribe. 
(b) DUTIES OF SECRETARY OF HEALTH AND HUMAN SERVICES.—The 
Secretary shall— 
(1) consider all applications received from States desiring to 
conduct demonstration projects under this section; 
(2) transmit to the Comptroller (Jeneral for review under 
subsection (e) a copy of each such application received; 
(3) approve at least 2 but not more thsui 3 applications 
involving projects which appear likely to contribute signifi-
cantly to the achievement of the purpose of this section; and 
(4) make grants from funds appropriated to carry out this 
section to each State whose application is so approved to carry 
out the prqiect that is the subject of the application. 
(c) PROJECT REQUIREMENTS.—The Secretary shall not approve an 
application received from a State for a demonstration project under 
this section unless the State agency that administers the program of 
£dd to families with dependent children in the State under a State 
plan approved under pieu^ A of title IV of the Social Security Act 
demonstrates that the project will— 
(1) provide housing in transitional facilities only to homeless 
famihes who are recipients of aid to families with dependent 
children under the State plan and who reside in commercial or 
similar transient facilities; 
(2) permanently reduce the number of rooms used to house 
homeless families who are recipients of such aid in commercial 
or similar transient facilities by the number of units made 
available in transitional facilities in accordance with paragraph 
(1); and 
(3) provide that the Federal share of the total amount of cash 
assistance provided under the project to families residing in 
transitional facilities plus the total amount of grants made to 
the State under thu3 section must be less than or equal to the 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3259 
Federal share of the cost of housing such families in commercial 
or similar transient facilities (including pajrments made to cover 
basic needs and services of such families). 
(d) USE OF FUNDS.—Each State that receives funds under this 
section shall use such funds to— 
(1) rehabilitate or construct transitional facilities which are 
easily convertible to permanent housing when such facilities 
are no longer needed as transitional facilities; and 
(2) provide on-site social services at such facilities. 
(e) GAO REVIEW OF APPUCATIONS.—Within 90 days after the 
Reports. 
Comptroller Greneral receives from the Secretary a copy of an 
application submitted under this section, the Comptroller General 
shall review such application and report to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the 
House of Representatives on whether the Federal share of the total 
amount of cash assistance to be provided under the project which is 
the subject of the application to families residing in transitional 
facilities plus the total amount of grants to be made to the State 
under this section is less than or equal to the Federal share of the 
cost of housing such families in commercial or similar transient 
facilities (including pa3mients made to cover basic needs and services 
of such families). 
(f) AUTHORIZATION OF APPROPRIATIONS.—For grants under this 
section, there is authorized to be appropriated to the Secretary for 
the fiscal year 1990 not to exceed $20,000,000, which shall remain 
available until expended. 
(g) DEFINITIONS.—As used in section 902 and this section: 
(1) HOMELESS FAMILY.—The term "homeless family" means a 
dependent child or children and the relatives with whom such 
child or children are living, who— 
(A) lack a fixed and regular nighttime address; 
(B) have a primary residence that is a shelter designed for 
temporary accommodation, a hotel, or a motel; or 
(C) are living in a place not designed for, or ordinarily 
used as, a regular sleeping accommodation. 
(2) COMMERCIAL OR SIMILAR TRANSIENT FACILITIES.—The term 
"commercial or similar transient facilities" means transient 
accommodations in— 
(A) a commercial hotel or motel operated by a privately 
owned for-profit entity; or 
(B) a similar esteblishment which is not a transitional 
facility (whether or not directly operated or contracted for 
by the Stete or a political subdivision or by a not-for-profit 
organization authorized by the State or political subdivision 
to provide such accommodations). 
(3) TRANSITIONAL PACiUTy.—The term "transitional facility" 
means any facility operated by a Stete or local government or a 
nonprofit organization which, at a minimum— 
(A) provides temporary and private sleeping accommoda-
tions, and temporary eating and cooking accommodations; 
and 
(B) provides services to help families locate and retain 
permanent housing. 
SEC. 904. PREVENTING FRAUD AND ABUSE IN HOUSING AND URBAN 
42 USC 3544. 
DEVELOPMENT PROGRAMS. 
(a) DEFINITIONS.—As used in this section: 
19-194 O—91—Part 4 
10 : QL 3 
102 STAT. 3260 
PUBLIC LAW 100-628—NOV. 7, 1988 
(1) SECRETARY.—The term "Secretary" means the Secretary of 
Housing and Urban Development. 
(2) APPUCANT; PARTICIPANT.—The terms "applicant" and 
"participant" shall have such meanings as the Secretary by 
regulation shall prescribe, except that such terms shall include 
members of an applicant's or participant's household, and such 
terms shall not include persons whose involvement is only in 
their official capacity, such as State or local government offi-
cials and officers of lending institutions. 
(3) PuBUC HOUSING AGENCY.—The term "public housing 
agency" means any agency described in section 3(b)(6) of the 
United States Housing Act of 1937. 
(b) APPLICANT AND PARTICIPANT CONSENT.—As a condition of ini-
tial or continuing eligibility for participation in any program of the 
Department of Housing and Urban Development involving initial 
and periodic review of an applicant's or participant's income, and to 
assure that the level of benefits provided under the program is 
correct, the Secretary may require that an applicant or partici-
pant— 
(1) sign a consent form approved by the Secretary authorizing 
the Secretary, the public housing £igency, or the owner respon-
sible for determining eligibility for or level of benefits to request 
current or previous employers to verify salary and wage 
information pertinent to the applicant's or participant's eligi-
bility or level of benefits; and 
(2) sign a consent form approved by the Secretary authorizing 
the Secretary or the public housing agency responsible for 
determining eligibility or level of benefits to request a State 
agency charged with the administration of the State unemploy-
ment law to release wage information with respect to such 
applicant or participant or information regarding whether such 
applicant or participant is receiving, has received, or has made 
application for, unemployment compensation, and the amount 
of any such compensation being received (or to be received) by 
such applicant or participant. 
This consent form shall not be used to request taxpayer return 
information protected by section 6103 of the Internal Revenue Code 
of 1986. 
(c) ACCESS TO STATE EMPLOYMENT RECORDS.— 
(1) AMENDMENTS TO SOCIAL SECURITY ACT.—(A) Section 303 of 
the Social Security Act (42 U.S.C. 503) is amended by adding at 
the end the following new subsection: 
"(iXD The State agency charged with the administration of the 
State law— 
"(A) shall disclose, upon request and on a reimbursable beisis, 
only to officers and employees of the Department of Housing 
and Urban Development and to representatives of a public 
housing agency, any of the following information contained in 
the records of such State agency with respect to individuals 
applying for or participating in any housing assistance program 
administered by the Department who have signed an appro-
priate consent form approved by the Secretary of Housing and 
Urban Development— 
"(i) wage information, and 
"(ii) whether an individual is receiving, has received, or 
has made application for, unemployment compensation. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3261 
and the amount of any such compensation being received 
(or to be received) by such individual, and 
"(B) shall establish such safeguards as are necessary (as 
determined by the Secretary of Labor in regulations) to ensure 
that information disclosed under subparagraph (A) is used only 
for purposes of determining an individual's eligibility for bene-
fits, or the amount of benefits, under a housing assistance 
program of the Department of Housing and Urban Develop-
ment. 
"(2) The Secretary of Labor shall prescribe regulations governing 
how often and in what form information may be disclosed under 
paragraph (IXA). 
"(3) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to 
comply substantially with the requirements of paragraph (1), the 
Secretary of Labor shall notify such State agency that further 
pa3maents will not be made to the State until he or she is satisfied 
that there is no longer any such failure. Until the Secretary of 
Labor is so satisfied, he or she shall make no future certification to 
the Secretary of the Treasury with respect to such State. 
"(4) For purposes of this subsection, the term 'public housing 
agency' means any agency described in section 3(bX6) of the United 
States Housing Act of 1937. 
"(5) The provisions of this subsection shall cease to be effective 
beginning on October 1,1994.". 
(B) Section 304(aX2) of the Social Security Act (42 U.S.C. 
504(aX2)) is amended by striking "(e), or (h)" and inserting "(e), 
(h),or(i)". 
(2) APPUCANT AND PARTICIPANT PROTECTIONS.—(A) In order to 
protect applicants for, and recipients of, benefits under the 
programs of the Department of Housing and Urban Develop-
ment from the improper use of information obtained pursuant 
to the requirements of section 303(i) of the Social Security Act 
from the State agency charged with the administration of the 
State unemplojonent compensation law, officers and employees 
of the Department of Housing and Urban Development and 
representatives of public housing agencies may only use such 
information— 
(i) to verify an applicant's or participant's eligibility for 
or level of benefits; or 
(ii) in the case of an owner responsible for determining 
eligibility for or level of benefits, to inform such owner that 
an applicant's or participant's eligibility for or level of 
benefits is uncertain and to request such owner to verify 
such applicant's or participant's income information. 
(B) No Federsd, State, or local agency, or public housing 
agency, or owner responsible for determining eligibility for or 
level of benefits receiving such information may terminate, 
deny, suspend, or reduce any benefits of an applicant or partici-
pant until such agency or owner has taken appropriate steps to 
independently verify information relating to— 
(i) the amount of the wsiges or unemplo3mient compensa-
tion involved, 
(ii) whether such applicant or participant actually has (or 
had) access to such wages or benefits for his or her own use, 
and 
Regulations. 
Termination 
date. 
102 STAT. 3262 
PUBLIC LAW 100-628—NOV. 7, 1988 
(iii) the period or periods when, or with respect to which, 
the applicant or participant actually received such wages or 
benefits. 
(C) Such applicant or participant shall be informed by the 
agency or owner of the findings made by the agency or owner on 
the basis of such verified information, and shall be given an 
opportunity to contest such findings, in the same manner as 
applies to other information and findings relating to eligibility 
factors under the program. 
(3) PENALTY.—(A) Any person who knowingly and willfully 
requests or obtains any information concerning an applicant or 
participant pursuant to the authority contained in section 303(i) 
of the Social Security Act under false pretenses, or any person 
who knowingly and willfully discloses any such information in 
any manner to any individual not entitled under any law to 
receive it, shall be guilty of a misdemeanor and fined not more 
than $5,000. The term "person" as used in this paragraph shall 
include an officer or employee of the Department of Housing 
and Urban Development, an officer or employee of any public 
housing agency, and any owner responsible for determining 
eligibility for or level of benefits (or employee thereof). 
(B) Any applicant or participant affected by (i) a negligent or 
knowing disclosure of information referred to in this section or 
in section 303(i) of the Social Security Act about such person by 
an officer or employee of any public housing agency or owner 
(or employee thereof), which disclosure is not authorized by this 
section, such section 303(i), or any regulation implementing this 
section or such section 303(i), or (ii) any other negligent or 
knowing action that is inconsistent with this section, such 
section 303(i), or any such implementing regulation may bring a 
civil action for damages and such other relief as may be appro-
priate against any officer or employee of any public housing 
agency or owner (or employee thereof) responsible for any such 
Ck)urts, U.S. 
unauthorized action. The district court of the United States in 
the district in which the affected applicant or participant re-
sides, in which such unauthorized action occurred, or in which 
the applicant or participant alleged to be responsible for any 
such unauthorized action resides, shall have jurisdiction in such 
matters. Appropriate relief that may be ordered by such district 
courts shall include reasonable attorney's fees and other litiga-
tion costs, 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), 
the provisions of this section shall take effect on September 30, 
1989. 
(2) OPTIONAL EARLY IMPLEMENTATION.—At the initiative of a 
State or an agency of the State, and with the approval of the 
Secretary of Labor, the amendments made by subsection (cKD 
may be made effective in such State on any date before Septem-
ber 30, 1989, which is more than 90 days after the date of the 
enactment of this section. 
(3) REQUIREMENTS FOR STATE AGENCIES.—In the case of any 
State the legislature of which has not been in session for at least 
30 calendar days (whether or not consecutive) between the date 
of the enactment of this Act and September 30, 1989, the 
amendments made by subsection (cXD shall take effect 30 cal-
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3263 
endar days after the first day on which such l^islature is in 
session on or after September 30,1989. 
TITLE X—HOUSING AND COMMUNITY 
DEVELOPMENT 
TECHNICAL AMEND-
MENTS 
Subtitle A—Housing Assistance 
SEC 1001. INCOME EUCmiLITY FOR ASSISTED HOUSING. 
(a) IN GENERAL.—Section 16(c) of the United States Housing Act of 
1937 (42 U.S.C. 1437n(c)) is amended in the first sentence— 
(1) by striking ", and" and inserting a comma; 
(2) by striking ", as appropriate" and all that follows through 
"programs" and inserting the following: "an appropriate spe-
cific percentage of lower income families other than very-low 
income families that may be assisted in each assisted housing 
program"; and 
(3) by inserting before the period at the end the followig: ", 
and shall prohibit project owners from selecting families for 
residence in an order different from the order on the waiting 
list for the purpose of selecting relatively higher income fami-
lies for residence". 
(b) CLARIFICATION.—Section 6(cX4XA) of the United States Housing 
Act of 1937 (42 U.S.C. 1437d(cX4XA)) is amended by inserting before 
the semicolon at the end the following: "and shall not permit public 
housing agencies to select families for residence in an order dif-
ferent from the order on the waiting list for the purpose of selecting 
relatively higher income families for residence". 
SEC 1002. PUBUC HOUSING CHILD CARE GRANTS. 
(a) AVAILABIUTT OF ClIILD C A R E SERVICES IN FACILITIES N E A R 
PUBLIC HOUSING.—Subsections (a), (b), (c), and (e) of section 222 of 
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
1701z-6 note) are amended by inserting "or near" after "child care 
services in" each place it appears. 
(b) CONFORMING AMENDMENTS.— 
(1) EuGmuTY F
O
R ASSISTANCE.—Section 222(b) of the Housing 
and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701z-^ note) 
is amended— 
(A) by striking "in the project" each place it appears and 
inserting "for the project ; and 
(B) in paragraph (2), by inserting "in or near the project" 
after "facilities". 
(2) ALLOCATION OF ASSISTANCE.—Section 222(cX3) of the Hous-
ing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701z-6 
note) is amended by striking "established in" and inserting 
"established for". 
SEC 1003. PUBUC HOUSING RESIDENT MANAGEMENT. 
Section 20 of the United States Housing Act of 1937 (42 U.S.C. 
1437r) is amended by adding at the end the following new sub-
sectioiu 
102 STAT. 3264 
PUBLIC LAW 100-628—NOV. 7, 1988 
Contracts. 
42 u s e 1437f 
note. 
Regulations. 
42 u s e 1437f 
note, 
eontracts. 
"(h) APPUCABILITY.—Any management contract between a public 
housing agency and a resident management corporation that is 
entered into after the date of the enactment of the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 shall be 
subject to this section and the r^ulations issued to carry out this 
section.". 
SEC. 1004. PROHIBITION OF REDUCTION OF SECTION 8 CONTRACT RENTS. 
(a) IN GENERAL.—Section 8(cX2XO of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(cX2XC)) is amended— 
(1) in the first sentence, by striking "as hereinbefore pro-
vided" and inserting the following: "under subparagraphs (A) 
and (B)"; and 
(2) by adding at the end the following new sentences: "Any 
maximum monthly rent that has been reduced by the Secretary 
after April 14,1987, and prior to the enactment of this sentence 
shall be restored to the maximum monthly rent in effect on 
April 15, 1987. For any project which has had its maximum 
monthly rents reduced after April 14, 1987, the Secretary shall 
make assistance payments (from amounts reserved for the origi-
nal contract) to the owner of such project in an amount equal to 
the difference between the maximum monthly rents in effect on 
April 15,1987, and the reduced maximum monthly rents, multi-
plied by the number of months that the reduced maximum 
monthly rents were in effect.". 
(b) BUDGET OOMPUANCE.—During fiscal year 1989, the amendment 
made by subsection (aX2) shall be effective only to such extent or in 
such amounts as are provided in appropriation Acts. For purposes of 
section 202 of the Balanced Budget and Emergency Deficit Control 
Reaffirmation Act of 
1987 (Public Law 100-119), to the extent that this 
section has the effect of transferring an outlay of the United States 
from one fiscal year to an adjacent fiscal year, the transfer is a 
necessary (but secondary) result of a significant policy change. 
SEC. 1005. PROJECT-BASED SECTION 8 ASSISTANCE. 
(a) IMPLEMENTATION OF PROGRAM.—To implement the amendment 
made by section 148 of the Housing and Community Development 
Act of 1987, the Secretary of Housing and Urban Development shall 
issue r^ulations that take effect not later than 30 dajrs after the 
date of the enactment of this Act. Until the effective date of the 
r^^ations, the Secretary of Housing and Urban Development shall 
consider each application from a public housing agency to attach a 
contract for assistance payments to a structure, in accordance with 
the amendment made by such section 148 to section 8(dX2) of the 
United States Housmg Act of 1937 (42 U.S.C. 1437f(dX2)), and shall 
promptly approve such application if it meets the requirements of 
such section 8(dX2). 
(b) AVAILABILITY IN NEW CONSTRUCTION PROJECTS.— 
(1) IN GENERAL.—Section 8(dX2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(dX2)) is amended— 
(A) by inserting "(A)" after the paragraph designation; 
(B) by striking (A)" and "(B)" each place it appears and 
inserting "(i)" and "(ii)", respectively; and 
(C) by adding at the end the following new subparagraph: 
"(B) The Secretary shall permit any public housing agency to 
approve the attachment of assistance under subsection (bXl) with 
respect to any newly constructed structure if— 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3265 
42 use 1437f 
note. 
Aged persons. 
"(i) the owner or prospective owner agrees to construct the 
structure other than with assistance under this Act and other-
wise complies with the requirements of this section; and 
"(ii) the aggr^ate assistance provided by the public housing 
agency pursuant to this subparagraph and the last sentence of 
subparagraph (A) does not exceed 15 percent of the assistance 
provided by the pubUc housing agency.'. 
(2) REGULATIONS.—^To implement the amendments made by 
this subsection, the Secretmy of Housii^ and Urban Develop-
ment shall issue r^ulations that take effect not later than 90 
days after the date of the enactment of this Act. 
(c) RENEWAL OF CONTRACTS.—Section 8(dX2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(dK2)) (as amended by subsection 
(b) of tibis section) is further amended by adding at the end the 
following new subparagraph: 
"(C) Any contract for assistance payments that is attached to a 
structure under this paragraph shall (at the option of the public 
housing agency but subject to available funds) be renewable for 2 
additional 5-year terms, except that the aggregate term of the initial 
contract and renewals shall not exceed 15 years.". 
(d) EXCEPTION TO 15 PERCENT LIMITATION.— 
(1) ALTOONA, PENNSYLVANIA.—^The Secretary of Housing and 
Urban Development, in accordance with paragraph (2) of sec-
tion 8(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)) but without r^ard to the 15 percent limitation set 
forth in such paragraph, shall permit the attachment of con-
tracts for assistance payments to the facility located in Altoona, 
Pennsylvania, that is the Penn Alto Hotel and will include not 
less than 140 units of housing for the elderly. 
(2) MINNEAPOLIS, MINNESOTA.—^Any tenant who is on the 
waiting list for dwellings in the Cedar Square West Project in 
Minneapolis, Minnesota, or is living in an overcrowded dwelling 
in the project, shall be given preference for the 250 project-
based certUicates under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f) that, before the date of the enad> 
ment of this Act, were offered in settlement for a lawsuit, 
notwithstanding section 8(dXlXA) of such Act. The Secretary of Contracts 
Housing and Urban Development, in accordance with para-
graph (2) of section 8(d) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(d)) but without regard to the 15 percent limita-
tion set forth in such paragraph, shall permit the attachment of 
contracts for assistance payments to structures to the extent 
necessary to provide the assistance for such 250 certificates. 
SEC 1006. SECTION 8 ASSISTANCE FOR RESIDENTS OF RENTAL 
REHABILITATION PROJECTS. 
Section 8(u) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(u)) is amended— 
(1) by striking "and" at the end of paragraph (1); 
(2) by striking the period at the end of paragraph (2) and 
inserting "; and , and 
(3) by adding at the end the following new i>aragraph: 
"(3) the Secretary shall allocate assistance for certificates or 
vouchers under this section to ensure that sufficient resources 
are available to address the physical or economic displacement, 
or potential economic displacement, of existing tenants pursu-
ant to paragraphs (1) and (2).". 
102 STAT. 3266 
PUBLIC LAW 100-628—NOV. 7, 1988 
State and local 
governments. 
Contracts. 
State and local 
governments. 
SEC. 1007. RENTAL REHABILITATION PROGRAM. 
(a) ADMINISTRATIVE EXPENSES.—Section 17(h) of the United States 
Housing Act of 1937 (42 U.S.C. 1437o(h)) is amended to read as 
follows: 
"(h) ADMINISTRATIVE EXPENSES.—(1) Except as provided in para-
graph (2), grantees receiving assistance under this section may not 
deduct therefrom any amounts to cover administrative expenses in 
carrying out their responsibilities under this section. 
"(2) A grantee may use not more than 10 percent of its initial 
rental rehabilitation grant under subsection (c) for each year to 
cover administrative expenses in canying out its responsibilities 
under this section. Any State shall share the amount provided 
pursuant to the preceding sentence with units of general local 
government administering the program with the State. . 
(h) CORRECTION OF CROSS-REFERENCE.—Section 17(iX2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437o(iX2)) is amended 
by striking "section 104(f)" and inserting "section 104(g)". 
SEC. 1008. TWEEMILL HOUSE. 
The Secretary of Housing and Urban Development shall process 
the application under section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q) for project 012-EH347 (Tweemill House) without 
regard to the cost limits that would otherwise be imposed pursuant 
to 24 C.F.R. 885.410(aXl), and the assistance to such project under 
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) 
may exceed the fair market rents established under section 8(cXl) of 
such Act. 
SEC. 1009. HOUSING COUNSELING. 
Section 106(aX2) of the Housing and Urban Development Act of 
1968 (12 U.S.C. 1701x(aX2)) is amended by inserting before the period 
at the end of the first sentence the following: or guaranteed or 
insured under chapter 37 of title 38, United States Code". 
SEC. 1010. MULTIFAMILY HOUSING MANAGEMENT AND PRESERVATION. 
(a) UNSUBSIDIZED PROJECTS.—Section 203(aXlXC) of the Housing 
and Community Development Amendments of 1978 (12 U.S.C. 
1701z-ll(aXlXC)) is amended by striking ", on the date of assign-
ment, occupied by low- and moderate-income persons" and inserting 
the following: "occupied by low- and moderate-income persons on 
the date of assignment or foreclosure (whichever is greater)". 
(b) SECTION 8 ASSISTANCE.—The third sentence of section 203(dXl) 
of the Housing and Community Development Amendments of 1978 
(12 U.S.C. 1701z-ll(dXl)) is amended to read as follows: "Such 
contracts shall be sufficient to assist (A) all units in multifamily 
housing projects that are subsidized projects or formerly subsidized 
projects; (B) in other multifamily housing projects owned by the 
Secretary, the units that, on the date title to the projects is acquired 
by the Secretary, are occupied by lower income families eligible for 
assistance under such section 8 or are vacant (which units shall be 
made available for such families as soon as possible); and (C) in all 
other multifamily housing projects, the units that are occupied by 
lower income families eligible for assistance under such section 8 on 
the date of assignment or foreclosure (whichever is greater).". 
(c) RIGHT OF FIRST REFUSAL.—Section 203(e) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1701z-
11(e)) is amended to read as follows: 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3267 
"(e)(1) Prior to the sale of a multifamily housing project that is 
owned by the Secretary, the Secretary shall develop a disposition 
plan for the project that specifies the minimum terms and condi-
tions of the Secretary for disposition of the project, including the 
initial sales price that is acceptable to the Secretary and the assist-
ance that the Secretary plans to make available to a prospective 
purchaser in accordance with subsections (a) and (d). The initial 
sales price shall reflect the value of the project as housing affordable 
to low- and moderate-income persons for the period required in 
subsection (d). 
"(2) Upon approval of a disposition plan for a project, the Sec-
retary shall notify the local government and the State housing 
finance agency (or other agency or agencies designated by the 
Governor) of the terms and conditions of the disposition plan. The 
local government and the designated State agency shall have 90 
davs to make an offer to purchase the project. 
(3) The Secretary shall accept an offer that complies with the 
terms and conditions of the disposition plan. The Secretary may 
accept an offer that does not comply with the terms and conditions 
of the disposition plan if the Secretary determines that the offer will 
further the preservation objectives of subsection (a) by actions that 
include extension of the duration of low- and moderate-income 
affordability restrictions or otherwise restructuring the transaction 
in a manner that enhances the long-term affordability for low- and 
moderate-income persons. The Secretary shall, in particular, have 
discretion to reduce the initial sales price in exchange for the 
extension of low- and moderate-income affordability restrictions 
beyond the 15-year period contemplated by the attachment of assist-
ance pursuant to subsection (dXl). If the Secretary and the local 
government or designated State agency cannot reach agreement 
within 90 days, the Secretary may offer the project for sale to the 
general public. 
"(4) The Secretary shall prohibit any local government or des-
ignated State agency from transferring projects acquired under a 
right of first refusal under this subsection to a private entity, unless 
the local government or designated State agency solicits proposals 
from such entities through a public process. The solicitation of 
proposals shall be based on prescribed criteria, which shall include 
the extension of low- and moderate-income affordability restrictions 
beyond the 15-year period contemplated by the, attachment of assist-
ance pursuant to subsection (d)(1). 
"(5) Notwithstanding any other provision of law to the contrary, a 
local government (including a public housing agency) or designated 
State ajgency may purchase a subsidized or formerly subsidized 
project in accordance with this subsection,". 
(d) DEFINITION OF SUBSIDIZED PROJECT.—Section 203(i)(2)(E) of the 
Housing and Community Development Amendments or 1978 (12 
U.S.C. 1701z-ll(iX2)(E)) is amended by striking "(other" and all that 
follows and inserting "(excluding payments made for certificates 
under subsection ObXD or vouchers under subsection (o)), if (except 
for purposes of paragraphs (1) and (2) of subsection (h) and section 
183(c) of the Housing and Community Development Act of 1987) 
such housing assistance payments are made to more than 50 percent 
of the units in the project.'. 
(e) DATE OF ASSIGNMENT.—Section 203(i) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1701z-
ll(i)) is amended by adding at the end the following new paragraph: 
102 STAT. 3268 
PUBLIC LAW 100-628—NOV. 7, 1988 
Regulations. 
12 use 1715z-la 
note. 
42 use 1437f 
note. 
"(4) For purposes of subsection (aXlXC) and subsection (d)— 
"(A) the term 'date of ass^ment' means the date of assign-
ment, without regard to whether such date occurs before, on, or 
after February 5,1988; and 
"(B) in the case of a multifamily housing project assigned 
before the date of the enactment of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 and for which 
there are no records identifying the number of low- and mod-
erate-income persons occup3ring units in the project on the date 
of assignment, the number of low- and moderate-income persons 
occupying units in the project within 120 days of such date of 
enactment shall be used instead.", 
(f) ANNUAL REPORT ON RIGHT OF FIRST REFUSAL.—Section 203 of 
the Housing and Community Development Amendments of 1978 (12 
U.S.C. 1701z-ll) is amended by adding at the end the following new 
subsection: 
"(k) The Secretary shall annually submit to the (Dongress a report 
describing the activities carried out under subsection (e) during the 
preceding year.". 
SEC. 1011. MULTIFAMILY HOUSING CAPITAL IMPROVEMENTS ASSIST-
ANCE. 
(a) AMOUNTS AVAILABLE.—Section 201(jX4) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1715z-
la(jX4)) is amended— 
(1) by striking "may use not more than $50,000,000" and 
inserting the following: "shall, to the extent of approvable 
applications and subject to paragraph (1), use not less than 
$30,000,000 or 40 percent (whichever is less) of the amounts 
available"; and 
(2) by adding at the end the following new sentence: "Any 
amount reserved under this paragraph for assistance for capitsd 
improvements that is not used before the last 60 days of a fiscal 
year shall become available for other assistance under this 
section.". 
(b) IMPLEMENTATION OF PROGRAM.—^To implement the amend-
ments made by section 185 of the Housing and Community Develop-
ment Act of 1987, the Secretary of Housing and Urban Development 
shall issue regulations that become effective not later than Feb-
ruary 5,1989. 
SEC. 1012. USE OF FUNDS RECAPTURED FROM REFINANCING STATE 
FINANCE PROJECTS. 
(a) IN GENERAL.—In the case of any State financed project that 
was provided a financial adjustment factor under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) and is being 
refinanced, 50 percent of the amounts that are recaptured from the 
project shall be made available to the State housing finance s^ency 
in the State where the project is located for use in providing decent, 
safe, and sanitary housing affordable to very low-income families or 
persons. 
(b) BUDGET (DOMPUANCE.—Subsection (a) shall be effective only to 
such extent or in such amounts as are provided in appropriation 
Acts. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3269 
SEC 1013. PUBUC HOUSING LEASE AND GRIEVANCE PROCEDURES. 
The Secretary of Housing and Urban Development shall publish a 
notice providing that the final rule of the Department of Housing 
and Urban Development entitled "Public Housing—Tenancy and 
Administrative Grievance Procedure" and published in the Federal 
R^lister of August 30, 1988 (53 Fed. R^. 33216 et seq.) shall be 
interim for effect. The Secretary shall afford interested persons an 
opportunity to conunent on the rule in accordance with section 
553(c) of title 5, United States Code, and such comment period shall 
continue for not less than 60 days, or until March 1,1989, whichever 
occurs later. 
SEC 1014. EXCEPTIONS TO TENANT PREFERENCE PROVISIONS. 
(a) PUBLIC HOUSING.— 
(1) IN GENERAL.—Section 6(cX4XA) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437d(cX4XA)) (as amended by section 
10N51(b) of this Act) is further amended— 
(A) by inserting "(i)" after ", but"; and 
(B) by inserting before the semicolon at the end the 
following: "; and (ii) the public housing agency may provide 
for circumstances in which families who do not quedify for 
any preference established in this subparagraph are pro-
vided assistance before families who do qualify for such 
preference, except that not more than 10 percent of the 
families who initially receive assistance in any 1-year 
period (or such shorter period selected by the public hous-
ing agency before the beginning of its first full year subject 
to this clause) may be families who do not qualify for such 
preference". 
(2) INDIAN HOUSING.—In accordance with section 201(bX2) of 
42 use I437d 
the United States Housing Act of 1937, the amendments made ^°^-
by paragraph (1) shall also apply to public housing developed or 
operated pursuant to a contract between the Secretary of Hous-
ing and Urban Development and an Indian housii^ authority. 
O
i
>
) SECTION 8 ASSISTANCE.—Section 8(dXlXA) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(dXlXA)) is amended— 
(1) by inserting "(i)" after "except that"; and 
(2) by inserting before the semicolon at the end the following: 
"; and (ii) the public housing agency may provide for cir-
cumstances in which families who do not qualify for any pref-
erence established in clause (i) are provided assistance before 
families who do qualify for such preference, except that not 
more than 10 percent (or such higher percentage determined by 
the Secretary to be necessary to ensure that public housing 
agencies can assist families in accordajice with subsection (uX2) 
or determined by the Secretary to be appropriate for other good 
cause) of the families who initially receive assistance in any 
1-year period (or such shorter period selected by the public 
housing agency before the beginning of its first full year subject 
to this clause) may be families who do not qualify for such 
preference". 
(c) HOUSING VOUCHERS.—Section 8(oX3) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(oX3)) is amended by adding at the 
end the following new sentence: "A public housing agency may 
provide for circumstances in which families who do not qualify for 
any preference established in the preceding sentence are provided 
assistance under this subsection before families who do quialify for 
102 STAT. 3270 
PUBLIC LAW 100-628—NOV. 7, 1988 
such preference, except that not more than 10 percent (or such 
higher percentage determined by the Secretary to be necessary to 
ensure that public housing agencies can assist families in accord-
ance with subsection (u)(2) or determined by the Secretary to be 
appropriate for other good cause) of the families who initially 
receive assistance in any 1-year period (or such shorter period 
selected by the public housing agency before the beginning of its 
first full year subject to this sentence) may be families who do not 
qualify for such preference.". 
Subtitle B—Preservation of Low Income 
Housing 
SEC. 1021. NOTICE OF INTENT. 
Section 222 of the Housing and Community Development Act of 
1987 (12 U.S.C. 17151 note) is amended in the last sentence by 
striking "notice or intent" and inserting "notice of intent". 
SEC. 1022. PLAN OF ACTION. 
(a) PROVISION OF INFORMATION.—Section 223(a) of the Housing and 
Community Development Act of 1987 (12 U.S.C. 17151 note) is 
amended by inserting before the period at the end of the first 
sentence the following: ", and any relevant market area and demo-
graphic information that the Secretary has custody of and that the 
owner may use in preparing the plan". 
(b) CONTENTS OF PLAN.—Section 223 of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 17151 note) is amended by 
adding at the end the following new subsection: 
"(d) AUTHORITY TO LIMIT CONTENTS OF PLAN.—The Secretary shall 
limit the amount of appraisal, market area, and demographic 
information required under this section in the case of a plan of 
action requesting incentives.". 
SEC. 1023. INCENTIVES TO EXTEND LOW INCOME USE. 
Section 224(b) of the Housing and Community Development Act of 
1987 (12 U.S.C. 17151 note) is amended in the matter preceding 
paragraph (1) by striking "Such agreements" and inserting the 
Contracts. 
following: "Agreements entered into under subsection (a) that by 
modifications to the existing regulatory agreement or mortgage 
extend the low income affordability restrictions through the term of 
the mortgage or, in the case of the prepayment of a mortgage, by a 
recorded instrument impose low income affordability restrictions 
(including the obligations specified in the regulatory agreement) 
through a period equivalent to the term of the original mortgage". 
SEC. 1024. CRITERIA FOR APPROVAL OF PLAN OF ACTION. 
Section 225(a)(1) of the Housing and Community Development Act 
of 1987 (12 U.S.C. 17151 note) is amended— 
(1) by inserting after "economic hardship for current tenants" 
the following: "(and will not in any event result in (A) a 
monthly rental payment by a current tenant that exceeds 30 
percent of the monthly adjusted income of the tenant or an 
increase in the monthly rental payment in any year that ex-
ceeds 10 percent (whichever is lower), or (B) in the case of a 
current tenant who already pays more than such percentage, an 
increase in the monthly rental payment in any year that ex-
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3271 
ceeds the increase in the Consumer Price Index or 10 percent 
(whichever is lower))"; £ind 
(2) by inserting before the semicolon at the end the following: 
", determined without r^ard to the availability of Federal 
housing assistance that would address any such hardship or 
involuntary displacement". 
SEC. 1025. MODIFICATION OF EXISTING REGULATORY AGREEMENTS. 
(a) CORRECTION OF CROSS-REFERENCE.—Section 228(aX5) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 17151 
note) is amended by striking "section 225(bX6)" and inserting "sec-
tion 225(bX3XF)". 
(b) O)RRECTi0N O
F T
Y
P
O
G
R
A
P
H
I
C
A
L ERROR.—Section 228(a) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 17151 
note) is amended by inserting a period at the end. 
SEC. 1026. REPORT ON NOTICE TO TENANTS AND INCENTIVES. 
Section 232 of the Housing and Ck)mmunity Development Act of 
1987 (12 U.S.C. 17151 note) is amended by adding at the end the 
following new sentence: "The report shall also include a detailed 
description of (1) the actions tsdien by the Secretary to ensure 
meaningful participation by affected tenants; and (2) the incentives 
developed by the Secretary under section 224 to ensure compliance 
with this subtitle.". 
SEC. 1027. DEFINITION OF ELIGIBLE LOW INCOME HOUSING. 
Section 233(lXAXiii) of the Housing and Ck)mmunity Development 
Act of 1987 (12 U.S.C. 17151 note) is amended by inserting "or a 
State or State agency" after "Secretary". 
SEC. 1028. RURAL RENTAL HOUSING DISPLACEMENT PREVENTION. 
(a) ASSISTANCE AVAILABLE TO BORROWER.—Section 502(cX4)(BXiv) 
of the Housing Act of 1949 (42 U.S.C. 1472(cX4XBXiv)) is amended by 
striking "paragraphs (7) and (8) of section 515(b)" and inserting 
"paragraphs (1) and (2) of section 515(c)". 
(b) SELECTION OF PURCHASERS.—Section 502(cX5)(B) of the Housing 
Act of 1949 (42 U.S.C. 1472(cX5XB)) is amended by adding at the end 
the following new clause: 
"(iii) SELECTION OF QUALIFIED PURCHASER.—^The Secretary 
Regulations. 
shall promulgate regulations that establish criteria for selecting 
a qualified nonprofit organization or public agency to purchase 
housing and related facilities when more than 1 such organiza-
tion or agency has made a bona fide offer. Such r^ulations 
shall give a priority to those organizations or agencies with the 
greatest experience in developing or managing low income 
housing or community development projects and with the long-
est record of service to the community.". 
(c) DEFINITIONS OF NONPROFIT ORGANIZATIONS.—Section 502(cX5XI) 
of the Housing Act of 1949 (42 U.S.C. 1472(cX5XI)) is amended to read 
as follows: 
"(I) DEFINITIONS.—For purposes of this paragraph: 
"(i) LOCAL NONPROFIT ORGANIZATION.—The term local non-
profit organization' means a nonprofit organization that— 
"(I) has a broad based board reflecting various interests 
in the community or trade area; and 
102 STAT. 3272 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(II) is a not-for-profit charitable organization whose prin-
cipal purposes include developing or managing low income 
housing or community development projects, 
"(ii) 
NONPROFIT 
ORGANIZATION.—The 
term 
'nonprofit 
organization' means any private organization— 
"(I) no part of the net earnings of which inures to the 
benefit of any member, founder, contributor, or individual; 
"(II) that is approved by the Secretary as to financial 
responsibility; and 
"(III) that does not have among its officers or directorate 
persons or parties with a material interest (or persons or 
parties related to any person or party with such an interest) 
in loans financed under section 515 that have been 
prepaid.". 
SEC. 1029. SECTION 8 LOAN MANAGEMENT PROGRAM. 
(a) REPEAL OF 15-YEAR TERM REQUIREMENT.—Section 8(v) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(v)) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraph (2) as paragraph (1). 
(b) EXECUTION OF NEW CONTRACTS.—Section 8(vXl) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f[vXl)) (as so redesignated 
by subsection (a) of this section) is amended by inserting "for project-
based loan management assistance" after "new contract". 
(c) AVAILABILITY OF ASSISTANCE FOR UNSUBSIDIZED PROJECTS.— 
Section 8(v) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(v)) (as amended by subsection (a) of this section) is further 
amended by adding at the end the following new paragraph: 
"(2XA) The eligiblity of a multifamily residential project for 
loan management assistance under this section shall be deter-
mined without regard to whether the project is subsidized or 
unsubsidized. 
"(B) In allocating loan management assistance under this 
section, the Secretary may give a priority to any project only on 
the basis that the project has serious financial problems that 
are likely to result in a claim on the insurance fund in the near 
future or the project is eligible to receive incentives under 
subtitle B of the Emergency Low Income Housing Preservation 
Act of 1987.". 
Subtitle C—Rural Housing 
SEC. 1041. IMPLEMENTATION OF GUARANTEED LOAN DEMONSTRATION. 
Regulations. 
(a) IN GENERAL.—Section 304(a) of the Housing and Community 
Development Act of 1987 (42 U.S.C. 1472 note) is amended by adding 
at the end the following: "To implement this section, the Secretary 
shall issue regulations that take effect not later than 120 days after 
the date of the enactment of the Stewart B. McKinney Homeless 
Assistance Amendments Act of 1988.". 
(b) CLARIFICATION.—Section 304 of the Housing and Community 
Development Act of 1987 (42 U.S.C. 1472 note) is amended by adding 
at the end the following new subsection: 
"(f) RELATION TO OTHER LAW.—Section 502(d), and the second 
sentence of section 517(e), of the Housing Act of 1949 shall not apply 
to this section.". 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3273 
(c) APPUCABILTTY.—The amendments made by this section shall 
42 use 1472 
apply to fiscal year 1989 and each succeeding fiscal year. 
note. 
SEC. 1042. SECTION 515 RENTS. 
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by striking subsection (h). 
SEC. 1043. AVAILABILITY OF DOMESTIC F
A
R
M LABOR HOUSING F
O
R 
OTHER FAMILIES. 
(a) INSURED LOAN PROGRAM.—Section 514 of the Housing Act of 
1949 (42 U.S.C. 1484) is amended by adding at the end the following 
new subsection: 
"(i) Housing and related facilities constructed with loans under 
this section may be used for tenants eligible for occupancy under 
section 515 if the Secretary determines that— 
"(1) there is no longer a need in the area for farm labor 
housing; or 
"(2) the need for such housing in the area has diminished to 
the extent that the purpose of the loan, providing housing for 
domestic farm labor, can no longer be met.". 
(b) GRANT PROGRAM.—Section 516 of the Housing Act of 1949 (42 
U.S.C. 1486) is amended by adding at the end the following new 
subsection: 
"(j) Housing and related facilities constructed with grants under 
this section may be used for tenants eligible for occupancy under 
section 515 if the Secretary determines that— 
"(1) there is no longer a need in the area for farm labor 
housing; or 
"(2) the need for such housing in the area has diminished to 
the extent that the purpose of the grant, providing housing for 
domestic farm labor, can no longer be met. . 
SEC. 1044. RURAL RENTAL REHABILITATION DEMONSTRATION. 
Section 311(b) of the Housing and Community Development Act of 
1987 (42 U.S.C. 1490m note) is amended— 
(1) by striking "provided to" and inserting "provided in"; and 
(2) by inserting before the period at the end the following: 
", including areas located in States where the Secretary 
administers the rental rehabilitation grant program". 
SEC. 1045. LEGAL REPRESENTATION IN LITIGATION INVOLVING COLLEC-
TION OF CLAIMS AND OBUGATIONS ARISING OUT OF RURAL 
HOUSING PROGRAMS. 
Section 510(d) of the Housing Act of 1949 (42 U.S.C. 1480(d)) is 
amended by inserting before the semicolon at the end the following: 
"; except that— 
(1) prosecution and defense of any litigation under section 
502 shall be conducted, at the discretion of the Secretary, by— 
"(A) the United States attorneys for the districts in which 
the litigation arises and any other attorney that the Attor-
ney General may designate under law, under the super-
vision of the Attorney General; 
"^) the General Counsel of the Department of Agri-
culture; or 
"(C) any other attorney with whom the Secretary enters 
Contracts. 
into a contract after a determination by the Secretary 
that— 
102 STAT. 3274 
PUBLIC LAW 100-628—NOV. 7, 1988 
"(i) the attorney will provide competent suid cost-
effective 
representation for the Farmers Home 
Administration; and 
"(ii) representation by the attorney will either (I) 
accelerate the process by which a family or person 
eligible for assistance under section 502 wUl be able to 
purchase and occupy the housing involved; or (II) pre-
serve the quality of the housing involved; and 
Reports. 
"(2) the Secretary shall annually submit to the Congress a 
report describing activities carried out under paragraph (IXC), 
including the cost of entering into contracts with such attorneys 
and the savings resulting from expedited foreclosure proceed-
ings". 
Subtitle D—Mortgage Insurance and Secondary 
Mortgage Market Programs 
SEC. 1061. CHANGE IN DEFINITION OF VETERAN. 
Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is 
amended to read as if the amendment made by section 405(1) of the 
Housing and Community Development Act of 1987 (101 Stat. 1899) 
to section 2030>X3X2) of the National Housing Act had been made 
instead to section 203(bX2) of the National Housing Act. 
SEC. 1062. LIMITATION ON USE OF SINGLE FAMILY MORTGAGE INSUR-
ANCE BY INVESTORS. 
(a) EXEMPTION FROM OCCUPANCY REQUIREMENT.—Section 203(gX3) 
of the National Housing Act (12 U.S.C. 1709(gX3)) is amended— 
(1) by striking "or" at the end of subparagraph (D); 
(2) by striking the period at the end of subparagraph (E) and 
inserting "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(F) a mortgagor that, pursuant to section 223(aX7), is re-
financing an existing mortgage insured under this Act for not 
more than the outstanding balance of the existing mortgage, if 
the amount of the monthly payment due under the refinancing 
mortgage is less than the amount due under the existing mort-
gage for the month in which the refinancing mortgage is 
executed.". 
(b) CORRECTION OF CONFORMING AMENDMENT.—Section 203(bX2) of 
the National Housing Act (12 U.S.C. 17090^X2)) is amended to read 
as if the amendment made by section 406(bXlXB) of the Housing and 
Community Development Act of 1987 (101 Stat. 1900) had deleted 
instead the following: "to be occupied as the principal residence of 
the owner". 
SEC. 1063. PROCEDURES APPLICABLE TO ASSUMPTION OF INSURED 
MORTGAGES. 
(a) CREDIT REVIEWS.—Section 203(rX2) of the National Housing 
Act (12 U.S.C. 1709(rX2)) is amended bv striking "date on which the 
mortgage is endorsed for insurance each place it appears and 
inserting "date on which the mortgage is executed". 
(b) EFFECTIVE DATE.—Section 407(aX2) of the Housing and Commu-
1
2 use 1
7
0
9 
nity Development Act of 1987 is amended to read as follows: 
note. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3275 
"(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 
shall apply to each mortgage originated pursuant to an applica-
tion for commitment for insurance signed by the applicant on or 
after December 1,1986.". 
SEC. 1064. PAYMENT OF CLAIMS ON LOSSES FROM PREFORECLOSURE 
SALES. 
(a) IN GENERAL.—The second sentence of section 204(a) of the 
National Housing Act (12 U.S.C. 1710(a)) is amended— 
(1) by inserting "(A)" after "(D"; and 
(2) by striking ", and (2)" and inserting the following: ", or (B) 
upon the sale of the insured property by the mortgagor after 
default, if (i) the sale has been approved by the Secretary,,(ii) 
the mortgagee receives an amount at least equal to the fair 
market value of the property (with appropriate adjustments), as 
determined by the Secretary, and (iii) the mortgagor has re-
ceived appropriate homeownership counseling, as determined 
by the Secretary; and (2)". 
(b) CONFORMING AMENDMENTS.— 
(1) APPUCABILTTY.—Section 204(a) of the National Housing 
Act (12 U.S.C. i710(a)) is amended in the third sentence by 
striking "the effective date of this sentence" and inserting the 
following: "November 30, 1983 (on or after the date of the 
enactment of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988, with respect to the payment of bene-
fits under clause (IXB) of the preceding sentence),'. 
(2) CROSS-REFERENCES —~~ 
(A) Section 204(a) of the National Housing Act (12 U.S.C. 
1710(a)) is amended immediately before the first proviso in 
the fifth sentence by striking "foreclosure". 
(B) Section 2040) of the National Housing Act (12 U.S.C. 
1710(j)) is amended by inserting "clause (IXA) o f before 
"the second sentence". 
(c) REGULATIONS.—In developing regulations to carry out the 12 use 1710 
amendments made by this section, the Secretary of Housing and ^
o
*
®
-
Urban Development may delegate to mortgagees the authority to 
make determinations on behalf of the Secretary, and the Secretary 
shall rely on certifications £md post audit reviews to the greatest 
extent possible. 
SEC. 1065. MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS. 
Section 247 of the National Housing Act (12 U.S.C. 1715z-12), as 
similarly amended first by the Department of Housing and Urban 
Development-Independent Agencies Act, 1988 (101 Stat. 1329-191) 
and later by subsections (a) and (b) of section 413 of the Housing and 
Community Development Act of 1987 (101 Stat. 1906), is amended to 
read as if the later amendment had not been enacted. 
SEC. 1066. HOME EQUITY CONVERSION MORTGAGE INSURANCE DEM-
ONSTRATION. 
(a) DEFINITIONS.—Section 255(bX3) of the National Housing Act (12 
U.S.C. 1715z-20(bX3)) is amended by inserting "Depository" before 
"Institutions". 
(b) ELIGIBILITY REQUIREMENTS.—Section 255(dX3) of the National 
Housing Act (12 U.S.C. 1715z-20(d)(3)) is amended by striking "and 
that" and all that follows through "residence". 
102 STAT. 3276 
PUBLIC LAW 100-628—NOV. 7, 1988 
Termination 
date. 
Reports. 
SEC. 1067. RECIPROCITY IN APPROVAL OF HOUSING SUBDIVISIONS 
AMONG FEDERAL AGENCIES. 
Section 535 of the Housing Act of 1949 (42 U.S.C. 1490o) is 
amended— 
(1) by inserting "(a)" after the section designation; and 
(2) by adding at the end the following new subsections: 
"(b) For purposes of complying with subsection (a), the Secretary 
of Housing and Urban Development shall consider the issuance by 
the Administrator of Veterans Affairs of a certificate of reasonable 
value for 1 or more properties in a subdivision to be an administra-
tive approval for the entire subdivision. This subsection shall not 
apply after the expiration of the 1-year period beginning on the date 
of the enactment of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988. 
"(c) Before the expiration of the period referred to in subsection 
(b), the Secretary of Housing and Urban Development shall report to 
the Congress on housing subdivision approval policies and practices, 
if any, of the Departments of Housing and Urban Development and 
Agriculture and the Veterans' Administration. The report shall 
focus on the administration of environmental laws in connection 
with any such policies and practices, and shall recommend any 
statutory, regulatory, and administrative changes needed to achieve 
total reciprocity for such housing subdivision approvals. The Sec-
retary of Housing and Urban Development shall consult with the 
foregoing agencies, and such other agencies as the Secretary selects, 
in preparing the report.". 
SEC. 1
0
6
8
. 
PERMANENT 
AUTHORITY 
TO 
PURCHASE 
SECOND 
MORTGAGES 
ON 
MULTIFAMILY 
PROPERTIES. 
(a) 
FEDERAL 
NATIONAL 
MORTGAGE 
ASSOCIATION.—Section 
3O20b)(5)(A)(ii) of the Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(bX5XAXii)) is amended by striking "until Octo-
ber 1,1985,". 
(b) 
FEDERAL HOME 
LOAN 
MORTGAGE CORPORATION.—Section 
305(aX4XAXii) of the Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1454(aX4XAXii)) is amended by striking "until October 1, 
1985,". 
Subtitle E—Community Development and 
Miscellaneous Programs 
SEC. 1081. CITY AND COUNTY CLASSIFICATIONS. 
(a) METROPOUTAN CITY.— 
(1) RETENTION OF CLASSIFICATION.—Section 102(aX4) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 
5302(aX4)) is amended in the second sentence— 
(A) by striking "the population data of the 1980 decennial 
census" and inserting a decrease in population"; and 
(B) by inserting * or any subsequent fiscal year" after 
"1983". 
(2) DEFERRAL OF CLASSIFICATION.—Section 102(aX4) of 
the 
Housing and (Community Development Act of 1974 (42 U.S.C. 
5302(aX4)), as similarly amended first by the Department of 
Housing and Urban Development-Independent Agencies Act, 
1988 (101 Stat. 1329-193) and later by section 503(aX2) of the 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3277 
Housing and Community Development Act of 1987 (101 Stat. 
1923), is amended to read as if the later amendment had not 
been enacted, 
(b) URBAN COUNTY.—Section 102(aX6XA) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302(aX6XA)) is 
amended by striking the last comma in clauses (i) and (iiXI) and 
inserting a semicolon. 
SEC. 1082. CORRECTIONS TO CROSS-REFERENCES. 
(a) DEFINITIONS.— 
(1) INCLUSION OF POPULATION IN URBAN COUNTY.—Section 
102(d) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5302(d)) is amended by striking "subsection (aX6XB)" 
and inserting "subparagraph (AXii) or (D) of subsection (aX6)". 
(2) EXCLUSION OF POPULATION FROM URBAN COUNTY.—The first 
sentence of section 102(e) of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302(e)) is amended by striking 
"subsection 
(aX6XBXi)" 
and 
inserting 
"subsection 
(aXeXAXiiXIXa)". 
(b) REALLOCATION OF AMOUNTS.—Section 106(cXl) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5306(cXl)) is 
amended— 
(1) in the first sentence, by striking "section 104 (a), 0)), or (c)" 
and inserting "subsection (a), O
t
>
)
, (c), or (d) of section 104"; 
(2) in the first sentence by striking "section 104(d)" and 
inserting "section 104(e)"; and 
(3) in subparagraph (B), by striking "section 104(d)" and 
inserting "section 104(e)". 
(c) ALLOCATIONS TO STATES.—Section 106(dX3) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5306(dX3)) is 
amended— 
(1) in subparagraph (C), by striking "subsection (a) or (b)" and 
inserting "subsection (a), (b), or (d)"; and 
(2) in subparagraphs (C) and (D), by striking "section 104(d)" 
each place it appears and inserting "section 104(e)". 
SEC. 1083. CONSERVING NEIGHBORHOODS AND HOUSING BY PROHIBIT-
ING DISPLACEMENT. 
(a) CERTIFICATIONS.—The third sentence of section 104(dXl) of the State and local 
Housing and Community Development Act of 1974 (42 U.S.C. governments. 
4304(dXl)) is amended to read as follows: "A unit of general local 
42 use 5304. 
government receiving amounts from a State under section 106(d) 
shall so certify to the State, and a unit of general local government 
receiving amounts from the Secretary under section 106(d) shall so 
certify to the Secretary.". 
(b) PLAN REQUIREMENTS.—Section 104(dX2XAXiiiXII) of the Hous-
ing and Community 
Development Act of 1974 (42 U.S.C. 
5304(dX2XAXiiiXII)) is amended by adding "and" at the end. 
SEC. 1084. URBAN DEVELOPMENT ACTION GRANTS. 
(a) USE OF REPAID GRANT FUNDS.—Section 119(f) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5318(f)) is 
amended in the penultimate sentence by striking "section 104" and 
inserting "section 105". 
(b) CONSIDERATION OF CERTAIN COUNTIES AS CITIES.—Section 
119(nXl) of the Housing and CJommunity Development Act of 1974 
(42 U.S.C. 5318(nXl)), as similarly amended first by the provisions 
102 STAT. 3278 
PUBLIC LAW 100-628—NOV. 7, 1988 
made effective by section 101(g) of Public Law 99-500 and Public 
Law 99-591 (100 Stat. 1783-242 and 3341-242) and later by section 
515(i) of the Housing and Community Development Act of 1987 (101 
Stat. 1934), is amended to read as if the later amendment had not 
been enacted. 
SEC. 1085. NEIGHBORHOOD REINVESTMENT CORPORATION. 
Section 604(aX6) of the Neighborhood Reinvestment Corporation 
Act (42 U.S.C. 8103(aX6)) is amended by striking the second of the 
two periods at the end. 
SEC. 1086. NATIONAL FLOOD INSURANCE PROGRAM. 
(a) CORRECTION OF TYPOGRAPHICAL ERROR.—Section 1306(cXlXA) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4013(cXlXA)) is 
amended by striking "Following" each place it appears in clauses (i) 
and (ii) and inserting "following^'. 
0)) (CORRECTION OF CROSS-REFERENCE.—Subsections (b) and (c) of 
section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4121) are each amended by striking "paragraph (1)" and inserting 
"subsection (aXD". 
(c) SACRAMENTO, CALIFORNIA.— 
(1) FINDINGS.—The 0)ngress finds that— 
(A) the Sacramento, California, area has had in place a 
flood control system that has been classified as protecting 
against floods with recurrence intervals of up to 125 years; 
(B) local governmental entities in the Sacramento metro-
politan area have been working diligently with the State of 
California, the Army CJorps of Engineers, and the Bureau of 
Reclamation since the occurrence of a heavy storm in 1986 
to formulate and implement a comprehensive plan to pro-
vide high level, efficient flood protection to the region; 
(C) the Federal Emergency Management Agency, in re-
sponse to studies by the Army (Ik)rps of Engineers indicat-
ing increased flood vulnerability attributable to increased 
estimates of the frequency of large storms in the region, has 
begun a process of re-analyzing the flood risks in the 
Sacramento area, and this analysis is likely to result in 
substantially increased flood elevation requirements under 
the National Flood Insurance Program; 
(D) changed flood elevation requirements attributable to 
a change in flood elevation determinations by the Director 
of the Federal Emergency Mans^ement Agency will cause 
severe disruption in the Sacramento r ^ o n and could 
precipitate the break-up of the political, institutional, and 
economic relationships sustaining the high level, com-
prehensive, flood protection effort; 
(E) failure to implement a comprehensive plan would 
leave substantial portions of the Sacramento area without 
necessary flood protection, and, further, could impose on 
the Federal Government various, substantial costs related 
to emergency responses and damage claims in the event of 
a major flood; 
(F) the Federal purposes embodied in the National Flood 
Insurance Program to minimize development in flood 
plains, to minimize damages caused by floods, and to reduce 
requirements for costly flood protection projects remain 
valid for the Sacramento metropolitan area, and impose 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3279 
upon its local governmental jurisdictions an obligation to 
exercise their authorities to avoid undue exposure to the 
dangers of floods and to voluntarily comply to the maxi-
mum extent practicable, consistent with other purposes of 
this subsection, with the National Flood Insurance Program 
standards that are anticipated to be applicable to the Sac-
ramento area following expiration of the period set by 
paragraph (2); 
(G) the City and County of Sacramento have each pro-
vided assurances to the Congress that they will not des-
ignate any increases in urbanization beyond lands already 
so designated in their general plans during the period set 
forth in paragraph (2), and, in addition, that in the exercise 
of their discretion to approve new development they will 
give careful consideration to— 
(i) an evacuation-emergency response plan; 
(ii) mechanisms by which to attempt to provide notice 
to all buyers of new structures; 
(iii) retention of natural floodways; and 
(iv) recommendations to all buyers of new structures 
to purchase flood insurance; 
(H) the City and County of Sacramento, in their discre-
tion, reserve the authority to impose elevation or other 
requirements for new construction based upon best avail-
able flood data if facts indicate the necessity of doing so; 
and 
(I) maintenance of the Federal flood elevation require-
ments now in effect for the Sacramento area for the limited 
period set forth in paragraph (2) will facilitate implementa-
tion of the high level, comprehensive plan for flood protec-
tion in the Sacramento area, and is therefore in the interest 
of Sacrcunento, the public safety, and the United States. 
(2) FLOOD ELEVATIONS.—Prior to the expiration of 2 years after 
the date on which the Secretary of the Army submits to the 
Congress the report on the feasibility study on Northern 
California Streams, American River Watershed, but not later 
than 4 years after the date of the enactment of this Act, the 
provisions of the National Flood Insurance Act of 1968 and the 
Flood Disgister Protection Act of 1973 shall apply on the basis of 
flood map elevation determinations made by the Director of the 
Federal Emergency Management Agency in effect as of the date 
of the enactment of this Act to the following areas: 
(A) the floodplain areas within Sutter and Sacramento 
Counties, California (collectively known as the "Natomas 
area"), which are bounded by the Sacramento River, the 
American River, the Natomeis Cross Canal, and the flood-
plain of the Natomas East Main Drainage Canal; 
(B) the floodplains within Sacramento County of Dry 
Creek, Arcade Creek, and Morrison Creek, to the extent 
these creeks are affected by the American and Sacramento 
Rivers, the American River, and the Sacramento River 
upstream of the City of Freeport, California; and 
(C) the City of West Sacramento in Yolo County, 
California. 
(3) BUDGET SUBMISSION.—The President, in submitting his 
budget for flscal year 1990, shall include a schedule for complet-
ing the study referred to in paragraph (2) £is expeditiously as 
Rivers and 
harbors. 
President of U.S. 
102 STAT. 3280 
PUBLIC LAW 100-628—NOV. 7, 1988 
practicable and an estimate of the resources required to meet 
such schedule, 
(d) PLANADA, CAUFORNIA.—The Director of the Federal Emer-
gency Management Agency shall prepare, or cause to be prepared, a 
hydrological study of Miles Creek, California, to use as the basis for 
the establishment of revised base flood elevations in and near the 
community of Planada, California. Until such time as the revised 
base flood elevations are established, the flood insurance rate map 
(Community Panel No. 0601880315A) in effect on September 1,1988, 
for the area in and near such community shall remain in effect. 
SEC. 1087. HOME MORTGAGE DISCLOSURE. 
(a) APPUCABIUTY OF 1987 AMENDMENTS.—Section 565(a)(4) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 2802 
note) is amended by striking "calendar years beginning after 
December 31,1986" and inserting "the portion of calendar year 1988 
that begins August 19, 1988, and to each calendar year beginning 
after December 31,1988". 
(b) CORRECTION OF TYPOGRAPHICAL ERROR.—Paragraphs (1) and (2) 
of section 306(b) of the Home Mortgage Disclosure Act (12 U.S.C. 
2805) are each amended by striking "Section" and inserting 
"section". 
(c) CORRECTION OF REFERENCES TO COMMITTEES.—Section 3070?) of 
the Home Mortgage Disclosure Act (12 U.S.C. 2806) is amended— 
(1) by striking "Committee on Banking, Currency and Hous-
ing" and inserting "Committee on Banking, Finance and Urban 
Affairs"; and 
(2) by inserting a comma after "Housing". 
Safety. 
SEC. 1088. LEAD-BASED PAINT POISONING PREVENTION. 
(a) INSPECTION.—Section 302(d)(1) of the Lead-Based Paint Poison-
ing Prevention Act (42 U.S.C. 4822(d)(1)) is amended— 
(1) by striking the paragraph caption and inserting the follow-
ing: "TRANSITIONAL TESTING AND ABATEMENT IN PUBUC HOUSING 
RECEIVING CIAP ASSISTANCE.—"; 
(2) by striking "section 9" in the first sentence and inserting 
"section 14"; 
(3) by striking subparagraphs (A), (B), and (C) in the first 
sentence and inserting the following: 
"(A) a random sample of dwellings and common areas in 
all public housing projects assisted under such section; and 
"(B) each dwelling in any public housing project in which 
there is a dwelling determined under subparagraph (A) to 
have lead-based paint h£izards, except that the Secretary 
shall not require the inspection of each dwelling if the 
Secretary requires the abatement of the lead-based paint 
hazards for the surfaces of each dwelling in the public 
housing project that correspond to the surfaces in the 
sample determined to have such hazards under subpara-
graph (A)."; 
(4) by striking the second and third sentences and inserting 
the following: "The Secretary shall require the inspection of all 
housing subject to this paragraph in accordance with the mod-
ernization schedule. A public housing agency may elect to test 
for lead-based paint using atomic absorption spectroscopy and 
may elect to abate lead-based paint and dust containing lead 
under standards more stringent than that in subsection (c), 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3281 
including the abatement of lead-based paint and dust which 
exceeds the standard of lead permitted in paints by the 
Consumer Product Safety Commission under this Act, and such 
abatement shall qualify for assistance under section 14 of the 
United States Housing Act of 1937."; and 
(5) by inserting before the period at the end of the last 
sentence the following: ", industrial hygienist, or local public 
health official". 
(b) ABATEMENT DEMONSTRATION.—Section 302(dX2) of the Lead-
Based Paint Poiiwning Prevention Act (42 U.S.C. 4822(dX2)) is 
amended— 
(1) by striking the paragraph caption and inserting the follow-
ing: "ABATE^/ENT DEMONSTRATION PROGRAM.—"; 
(2) in subparagraph (A)— 
(A) by inserting after "Urban Development" the follow-
ing: "and public housing"; and 
(B) by adding at the end the following new sentence: "For 
purposes of the demonstration, a pubUc housing agency 
may elect to test for lead-based paint using atomic a^orp-
tion spectroscopy and may elect to abate lead-based paint 
and dust containing lead under standards more stringent 
than that in subsection (c), including the abatement of lead-
based paint and dust which exceeds the standard of lead 
permitted in paints by the Consumer Product Safety 
Commission under this Act, and such abatement shall qual-
ify for assistance under section 14 of the United States 
Housing Act of 1937."; and 
(3) in subparagraph (B), by inserting after the first sentence 
the following new sentence: "Based on the demonstration, the 
Secretary shall prepare and include in the report a comprehen-
sive and workable plan for the cost-effective inspection and 
abatement of public housing in accordance with paragraph (3), 
including an estimate of the total cost of abatement in accord-
ance with paragraph (3XB).". 
(c) REPORTS.—Section 302(dX2XB) of the Lead-Based Paint Poison-
ing Prevention Act (42 U.S.C. 4822(dX2XB)) is amended— 
(1) in clause (i), by inserting ", including X-ray fluorescence 
and atomic absorption spectroscopy' before the semicolon; 
(2) in clause (ii), by inserting , including removal, contain-
ment, or encapsulation of the contaminated components, proce-
dures which minimize the generation of dust (including the high 
efficiency vacuum removal of leaded dust), and procedures that 
provide for offsite disposal of the removed components, in 
compliance with all applicable r^fulatory standards and proce-
dures" before the semicolon; 
(3) in clause (iii), by inserting ", abatement, and worker 
protection" before the semicolon; 
(4) by striking "and" at the end of clause (v); 
(5) by striking the period at the end of clause (vi) and insert-
ing "; and "; and 
(6) by adding at the end the following new clause: 
"(vii) the merits of an interim containment protocol 
for public housing dwellings that are determined to 
have lead-based paint hazards but for which com-
prehensive improvement assistance under section 14 
of the United States Housing Act of 1937 is not 
available.". 
102 STAT. 3282 
PUBLIC LAW 100-628—NOV. 7, 1988 
(d) PuBuc HOUSING INSPECTION.—Section 302(d) of the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4822(d)) is amended— 
(1) by redesignating paragraph (3) £is paragraph (4); and 
(2) by inserting after paragraph (2) the following: 
"(3) TESTING AND ABATEMENT OF OTHER PUBLIC HOUSING.— 
"(A) REQUIRED INSPECTION.—The Secretary shall require 
the inspection described in subsection (c) for— 
"(i) a random sample of dwellings and common areas 
in all public housing that is not subject to paragraph 
(1); and 
"(ii) each dwelling in any public housing project in 
which there is a dwelling determined under clause (i) to 
have lead-based paint hazards, except that the Sec-
retary shall not require the inspection of each dwelling 
if the Secretary requires the abatement of the lead-
based paint hazards for the surfaces of each dwelling in 
the public housing project that correspond to the sur-
faces in the sample determined to have such hazards 
under clause (i). 
"(B) SCHEDULE.—The Secretary shall require the inspec-
tion of all housing subject to this paragraph prior to the 
expiration of 5 years after the report is required to be 
transmitted under paragraph (2)(B). The Secretary may 
prioritize, within such 5-year period, inspections on the 
basis of vacancy, age of housing, or projected modernization 
or rehabilitation. The Secretary shall require abatement 
and final inspection and certification of such housing in 
accordance with the last two sentences of paragraph (1).". 
(e) FUNDING.—Section 302(f) of the Lead-Based Paint Poisoning 
Prevention Act (42 U.S.C. 4822(f)) is amended by adding at the end 
the following new sentence: "The Secretary shall submit annually to 
the Congress an estimate of the funds required to carry out the 
provisions of this section with the reports required by paragraphs 
(2)(B) and (4).". 
(f) DETECTION TECHNIQUE.—Section 302(c) of the Lead-Based Paint 
Poisoning Prevention Act (42 U.S.C. 4822(c)) is amended— 
(1) in the first sentence, by inserting after "fluorescence 
analyzer" the following: ", atomic absorption spectroscopy,"; 
and 
(2) in the second sentence, by inserting after "A qualified 
inspector" the following: "or laboratory". 
42 use 4822 
(g) CONSULTATION.—Section 566(b) of the Housing and Community 
note- 
Development Act of 1987 is amended— 
(1) in the caption, by inserting "AND CONSULTATION" after 
"REGULATIONS"; and 
(2) in paragraph (3)— 
(A) by striking "under this subsection" and inserting 
"and in preparing reports under this section"; and 
(B) in subparagraph (A), by inserting after "Building 
Sciences" the following: ", the Environmental Protection 
Agency, the National Institute of Environmental Health 
Sciences, the Centers for Disease Control, the Consumer 
Product Safety Commission, major public housing organiza-
tions, other major housing organizations,". 
(h) INTERPRETATION OF SECTION.—Section 302 of the Lead-Based 
Paint Poisoning Prevention Act (42 U.S.C. 4822) is amended by 
adding at the end the following new subsection: 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3283 
"(g) INTERPRETATION OF SECTION.—This section may not be con-
strued to affect the responsibilities of the Environmental Protection 
Agency with respect to the protection of the public health from 
hazards posed by lead-based paint.". 
SEC. 1089. INTERSTATE LAND SALES FULL DISCLOSURE. 
(a) CORRECTION OF TYPOGRAPHICAL ERROR.—Section 1402(10) the 
Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701(10)) is 
amended by inserting "and" after the semicolon, 
(b) CORRECTION OF NUMBERING.—Section 1420 the Interstate Land 
Sales Full Disclosure Act (15 U.S.C. 1719), is amended by striking 
"(a)" after the section designation. 
SEC. 1090. DESIGNATION OF ENTERPRISE ZONES. 
(a) CRITERIA FOR RANKING NOMINATED AREAS.—The first sentence 
of section 701(a)(3)(A) of the Housing and Community Development 
Act of 1987 (42 U.S.C. 11501(a)(3XA)) is amended to read as follows: 
"Except as provided in subparagraph (B), the Secretary shall des-
ignate (i) the nominated areas with the highest average ranking 
with respect to the criteria set forth in subparagraphs (C) and (D) of 
subsection (c)(3), and the 1 criterion set forth in subparagraph (EXi) 
or (EXii) of subsection (cX3) that gives an area a higher ranking; and 
(ii) for areas described in paragraph (2XB), the nominated areas with 
the highest ranking with respect to the 1 criterion set forth in 
subparagraph (C), (D), (EXi), or (EXii) of subsection (cX3) that gives an 
area a higher ranking.". 
(b) CORRECTION OF CROSS-REFERENCE.—Section 701(aX2XB) of the 
Housing and Community Development Act of 1987 (42 U.S.C. 
11501(aX2XB)) is amended by striking "under clause (i)" and insert-
ing "under subparagraph (A)". 
(c) REGULATIONS.—Not later than 30 days after the date of the 
42 use iisoi 
enactment of this Act, the Secretary of Housing and Urban Develop- 
"ote. 
ment shall revise the regulations issued by the Secretary to carry 
out title VII of the Housing and (Community Development Act of 
1987 (42 U.S.C. 11501 et seq.) by issuing a final regulation, effective 
upon the date of publication, that carries out the amendments made 
by this section. 
SEC. 1091. REPORT ON RECOMMENDED POLICY FOR DEALING WITH 
Safety. 
RADON IN ASSISTED HOUSING. 
15 USC 2661 
(a) PURPOSES.—The purposes of this section are— 
(1) to require the Department of Housing and Urban Develop-
ment to develop an effective departmental policy for dealing 
with radon contamination that utilizes any Environmental 
Protection Agency guidelines and standards to ensure that 
occupants of housing covered by this section are not exposed to 
hazardous levels of radon; and 
(2) to require the Department of Housing and Urban Develop-
ment to assist the Environmental Protection Agency in reduc-
ing radon contamination. 
O
t
)
) PROGRAM.— 
(1) APPUCABILTTY.—The housing covered by this section is— 
(A) multifamily housing owned by the Department of 
Housing and Urban Development; 
(B) public housing and Indian housing assisted under the 
United States Housing Act of 1937; 
note. 
102 STAT. 3284 
PUBLIC LAW 100-628—NOV. 7, 1988 
State and local 
governments. 
Business and 
industry. 
Health care 
facilities. 
Health care 
professionals. 
(C) housing receiving project-based assistance under sec-
tion 8 of the United States Housing Act of 1937; 
(D) housing assisted under section 236 of the National 
Housing Act; and 
(E) housing Eissisted under section 221(d)(3) of the 
National Housing Act. 
(2) IN GENERAL.—The Secretary of Housing and Urban Devel-
opment shall develop and recommend to the Congress a policy 
for dealing with radon contamination that specifies programs 
for education, research, testing, and mitigation of radon hazards 
in housing covered by this section. 
(3) STANDARDS.—In developing the policy, the Secretary shall 
utilize any guidelines, information, or standards established by 
the Environmental Protection Agency for— 
(A) testing residential and nonresidential structures for 
radon; 
(B) identifying elevated radon levels; 
(C) identifying when remedial actions should be taken; 
and 
(D) identifying geographical aresis that are likely to have 
elevated levels of radon. 
(4) COORDINATION.—In developing the policy, the Secretary 
shall coordinate the efforts of the Department of Housing and 
Urban 
Development 
with the Environmental 
Protection 
Agency, and other appropriate Federal agencies, and shall con-
sult with State and local governments, the housing industry, 
consumer groups, health organizations, appropriate professional 
organizations, and other appropriate experts. 
(5) REPORT.—The Secretary shall submit a report to the Con-
gress within 1 year after the date of the enactment of this Act 
that describes the Secretary's recommended policy for dealing 
with radon contamination and the Secretary's reasons for rec-
ommending such policy. The report shall include an estimate of 
the housing covered by this section that is likely to have 
hsizardous levels of radon. 
(c) COOPERATION WITH ENVIRONMENTAL PROTECTION AGENCY.— 
Within 6 months after the date of the enactment of this Act, the 
Secretary and the Administrator of the Environmental Protection 
Agency shall enter into a memorandum of understanding describing 
the Secretary's plan to assist the Administrator in carrying out the 
Environmental Protection Agency's authority to assess the extent of 
radon contamination in the United States and assist in the develop-
ment of meeisures to avoid and reduce radon contamination. 
(d) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATOR.—The term "Administrator" means the 
Administrator of the Environmental Protection Agency. 
PUBLIC LAW 100-628—NOV. 7, 1988 
102 STAT. 3285 
(2) SECRETARY.—The term "Secretary" means the Secretary of 
Housing and Urban Development. 
(e) AUTHORIZATION.—Funds available for housing covered by this 
section shall be available to carry out this section with respect to 
such housing. 
Approved November 7, 1988. 
LEGISLATIVE HISTORY—H.R. 4352 (S. 2554): 
HOUSE REPORTS: No. 100-718, Pt. 1 (Coram, on Energy and Commerce), Ft. 2 
(Comm. on Banking, Finance and Urban Affairs), and Pt. 3 
(Comm. on Ways and Means); and No. 100-1089 (Comm. of 
Conference). 
SENATE REPORTS: No. 100-393 accompaninng S. 2554 (Comm. on Banking, Hous-
ing, and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Aug. 3, considered and passed House. 
Sept. 28, considered and passed Senate, amended. 
Oct. 19, House agreed to conference report. 
Oct. 20, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Nov. 7, Presidential statement.