Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: Section 1. This Act may be cited as the ''Section 515 Rural Housing
Reform''.
Sec. 101. Title V of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.) is amended:
(a) Section 502(c)(1) is amended by adding a new paragraph
(C) to read as follows:
''(C) Effective May 26, 1994, the Secretary may not
accept an offer to prepay, or request refinancing in
accordance with subsection (b)(3) of, any loan made or
insured under section 515 pursuant to a contract
entered into before the enactment of the Department of
Housing and Urban Development Reform Act of 1989 for a
period of not less than two years from the date of
enactment of the Housing and Community Development Act
of 1994.
''(D) The Secretary shall conduct either directly
or through a contract an independent assessment of
rural housing preservation provisions. Such assessment,
along with recommendations of changes in law and
regulation shall be submitted to relevant committees of
the Congress by May 31, 1996.''.
(b) Section 502(c)(4)(C) is amended by revising it to read
as follows:
''(C) Approval of assistance.--The Secretary may
approve assistance under subparagraph (B) only if the
restrictive period has expired for any loan made or
insured under section 514 or 515 of this title pursuant
to a contract entered into after December 21, 1979, but
before the date of enactment of the Department of
Housing and Urban Development Reform Act of 1989 and
the Secretary determines that the combination of
assistance provided.''.
Sec. 201. Title V of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.) is amended:
(a) Section 515(a)(2) is amended to change ''fifty'' to
read ''thirty''.
(b) Section 515(b)(2) is amended to read ''provide for
amortization as if the term of the loan was for a period of not
to exceed fifty years and may allow for a balloon payment at
the end of the term of the loan. Such loan may be, in the
discretion of the Secretary, rescheduled for a period not to
exceed fifty years from the date of the original loan. The
amount of the unpaid principal and interest of the prior loan
rescheduled shall not create a new charge against any loan
levels authorized by law.''
Sec. 301. Title V of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.) is amended: Section 515(t) is amended by deleting paragraphs (4)
and (5) and renumbering paragraphs (6), (7), and (8) as paragraphs (4),
(5), and (6) respectively.
Sec. 401. Title V of the Housing Act of 1949 (U.S.C. 1471 et seq.)
is amended: Section 510(d)(1) is amended to read ''prosecution and
defense of any litigation under sections 515 shall be conducted, at the
discretion of the Secretary, by''.
Sec. 501. Section 6103(1)(7) of the Internal Revenue Code of 1986
is amended by adding a new subparagraph (x) to read ''(x) any housing
assistance program administered by the Department of Agriculture that
involves initial and periodic review of an applicant's or participant's
income and only for use by officers and employees of the Department of
Agriculture with respect to the applicants and participants in such
programs.''.
Sec. 601. Section 536 of the Housing Act (42 U.S.C. 1471 et seq.)
is amended by redesignating paragraphs (d), (e), (f), (g), (h), and (i)
as paragraphs (e), (f), (g), (h), (i), and (j) respectively, adding a
new paragraph (d), and amending the last sentence of redesignated
paragraph (g) to read as follows:
''(d) Subsidy Layering.--The Secretary is authorized to establish a
process for evaluating assistance provided under this title to ensure
that excess assistance is not provided. In conducting such an
evaluation, the Secretary shall utilize information received under
paragraphs (b) and (c) of this section. To the extent practicable, the
Secretary is authorized to make use of procedures, policies and
regulations currently in use by the Department of Housing and Urban
Development and may, to the extent practicable, develop memoranda of
understanding with State housing agencies to implement the provisions
of this section.
''(g) Limitation of Assistance.--* * *Notwithstanding the
provisions of section 515(r), the Secretary may decrease the amount of
assistance provided under this title if he/she determines that other
assistance reported under paragraphs (b) and (c) will provide excess
assistance and/or profits to the recipient.''.
Sec. 701. Section 509(f) of the Housing Act of 1949 (U.S.C. 1471 et
seq.), is amended to read as follows:
''(f) Underserved Housing.--
''(1) Designation of underserved area.--The Secretary shall
designate as targeted underserved areas 100 counties and
communities in each fiscal year that have severe, unmet housing
needs as determined by the Secretary. A county or community
shall be eligible for designation if, during the 5-year period
preceding the year in which the designation is made, it has
received an average amount of assistance that is substantially
lower than the average annual amount of assistance received
during that 5-year period by other counties and communities in
the State that are eligible for such assistance calculated on a
per capita basis, and has--
''(A) 15 percent or more of its population at or
below the poverty level; and
''(B) 5 percent of its population residing in
substandard housing.
As used in this paragraph, the term 'poverty level' has the
meaning given the term in section 102(a)(9) of the Housing and
Community Development Act of 1974.
''(2) Preferences.--In selecting projects to receive
assistance with amounts set aside under paragraph (6), the
Secretary shall give preference to any project located in a
county or community that has, at the time of designation and as
determined by the Secretary--
''(A) 20 percent or more of its population at or
below poverty level; and
''(B) 7 percent or more of its population residing
in substandard housing.
In designating underserved areas under paragraph (1), in each
fiscal year the Secretary shall designate not less than 5
counties or communities that contain tribal allotted or Indian
trust land. In designating underserved areas under paragraph
(1), the Secretary shall not designate more than 10 counties or
communities in one State or Puerto Rico during each designation
cycle. If in selecting the 100 underserved areas there are more
than 10 counties or communities in one State or Puerto Rico
which meet the requirements of this paragraph, the Secretary
will select the 10 most underserved counties or communities
utilizing the highest combined percentages of populations below
the poverty level and households residing in substandard
housing. The remaining counties will be eligible for unused
funds as described in paragraph (6)(A).
''(3) Other underserved areas.--In addition to the 100
targeted counties and communities, the Secretary may also
designate other underserved areas that have a severe, unmet
housing need based upon objective requirements. Such objective
requirements may include counties and communities experiencing
trauma due to natural disasters or structural change;
communities that have remained consistently poor; colonias as
defined in paragraph (10) and communities that have experienced
long-term populations decline and job deterioration.
''(4) Underserved applicants.--The Secretary may also set-
aside funds under paragraph (6) for applicants who have been
underserved. A class of applicants shall be eligible for
designation if, during the 5-year period preceding the year in
which the designation is made, the class received an average
annual amount of assistance under this title that is
substantially lower than the class proportionate percentage of
the rural population. Such underserved applicants may include
socially disadvantaged persons such as women, blacks,
Hispanics, Asian and Pacific Islanders, and Native Americans.
''(5) Outreach program and review.--
''(A) Outreach.--The Secretary shall publicize the
availability to targeted underserved areas and
applicants of grants and loans under this title and
promote, to the maximum extent feasible, efforts to
apply for those grants and loans.
''(B) Review.--Upon receipt of data from the 1990
decennial census, the Secretary shall conduct a review
of any designations made under paragraph (1) and
preferences given under paragraph (2) and the
eligibility of communities and counties for such
designation and preference, examining the effects of
such data on such eligibility. The Secretary shall
submit to Congress, not later than 9 months after the
availability of the data, a report regarding the
review, which shall include any recommendations of the
Secretary for modifications in the standards for
designation and preference. The Secretary shall also
submit a report to Congress at any time between
decennial census when recommendations for modification
will promote targeting of assistance for underserved
housing.
''(6) Set-aside for targeted underserved housing and
colonias.--
''(A) In general.--The Secretary shall set aside
and reserve for assistance an amount not less than 5
percent but not greater than 10 percent in each fiscal
year of the aggregate amount of lending authority under
sections 502, 504, and 515. During each fiscal year,
the Secretary shall set aside an amount of section 521
rental assistance that is appropriate to provide
assistance with respect to the appropriate lending
authority set aside each year. The Secretary shall also
set aside a reasonable amount of assistance in other
programs under this title if he/she deems necessary to
provide for underserved housing. The Secretary shall
establish a procedure to reallocate any assistance set
aside in any fiscal year for targeted underserved areas
that has not been expended during a reasonable period
in such year for use in (i) colonias that have applied
for and are eligible for assistance under subparagraph
(B) or paragraph (9) and did not receive assistance,
and (ii) counties and communities eligible for
designation as targeted underserved areas but which
were not designated. The procedure shall also provide
that any assistance reallocated under the preceding
sentence that has not been expended by a reasonable
date established by the Secretary (which shall be after
the expiration of the period referred to in the
preceding sentence) shall be made available and
allocated under the laws and regulations relating to
such assistance, notwithstanding this subsection.
''(B) Length of designation.--In designating
underserved areas under paragraph (1), each such area
shall remain designated for a period of two years;
except for counties which contain tribal allotted or
Indian trust land which shall remain designated for
three years.
''(C) Priority for colonias.--
''(i) Notwithstanding the designation of
counties and communities as targeted
underserved areas under paragraph (1) and the
provisions of section 520, colonias shall be
eligible for assistance with amounts reserved
under subparagraph (A), as provided in this
subparagraph.
''(ii) In providing assistance from amounts
reserved under this paragraph in each fiscal
year, the Secretary shall give priority to any
application for assistance to be used in, or in
close proximity to, and serving the residents
of, a colonia located in a State described
under clause (iii). After the Secretary has
provided assistance under the priority for
colonias located in a State in amount equal to
10 percent of the total amount of assistance
allocated under this title to such State in the
fiscal year or an average size loan, whichever
is greater, the priority shall not apply to any
applications for colonias in such State.
''(iii) This paragraph shall apply to any
State for the total amount of assistance
allocated to it under this title during each of
such 2 fiscal years.
''(7) List of underserved areas.--The Secretary shall
publish annually the current list of targeted underserved areas
in the Federal Register.
''(8) Project preparation assistance.--
''(A) In general.--The Secretary shall make grants
to eligible applicants under subparagraph (D) to
promote the development of affordable housing in
targeted underserved areas and colonias.
''(B) Use.--A grant under this subparagraph shall
not exceed an amount that the Secretary determines
equal to the customary and reasonable costs incurred in
preparing an application for a loan or a grant under
section 502, 504, 514, 515, or 524 or a grant under
section 516 or 533 (including preapplication planning,
site analysis, market analysis and other necessary
technical assistance). The Secretary shall adjust the
loan or grant amount under such sections to take
account of project preparation costs that have been
paid from grant proceeds under this paragraph and that
normally would be reimbursed with proceeds of the loan
or grant.
''(C) Approval.--The Secretary shall approve a
properly submitted application or issue a written
statement indicating the reasons for disapproval not
later than 60 days after receipt of the application.
''(D) Eligibility.--For purpose of this paragraph,
an eligible applicant may be a nonprofit organization
or corporation, a community housing development
organization, State, unit if general local government,
or agency of a State or unit of general local
government.
''(E) Availability of funding.--Any amounts
appropriate to carry out this paragraph shall remain
available until expended.
''(9) Priority for colonias.--
''(A) In general.--In providing assistance under
this title in any fiscal year described under paragraph
(B), each State in which colonias are located shall
give priority to any applications for assistance to be
used in a colonia. The priority under this subparagraph
shall not apply in such State after 5 percent of the
assistance available in such fiscal year has been
allocated for colonias qualifying for the priority.
''(B) Covered years.--This paragraph shall apply to
any fiscal year following 2 fiscal years in which the
State did not obligate the total amount of assistance
allocated it under this title during each of such 2
fiscal years.
''(10) Definition of colonia.--For purposes of this
subsection, the term 'colonia' means any identifiable community
that--
''(A) is in the State of Arizona, California, New
Mexico or Texas;
''(B) is in the area of the United States within
150 miles of the border between United States and
Mexico, except that the term does not include any
standard metropolitan statistical areas that has a
population exceeding 1,000,000;
''(C) is determined to be a colonia on the basis of
objective criteria, including lack of potable water
supply, lack of adequate sewage systems, and lack of
decent, safe, and sanitary housing; and
''(D) was in existence as a colonia before the date
of enactment of the Cranston-Gonzalez National
Affordable Housing Act.''.
Sec. 801. Section 515(s) of the Housing Act of 1949 (U.S.C. 1471 et
seq.), is amended to read as follows:
''(s) No fee other than a late fee or reasonable application fee
not to exceed one-half of one percent of the proposed mortgage amount,
may be imposed by or for the Secretary or any other Federal agency on
or with respect to a loan made or insured under this section. Such
application fee will be used, in part, to defray the cost of
professional market studies obtained by the Secretary to determine
market feasibility. Such application fee may be waived for non-profit
applicants which are not receiving any tax credit benefits under
section 42 of the Internal Revenue Code.''.
Output:
Section 515 Rural Housing Reform - Amends the Housing Act of 1949 to revise the elderly, handicapped, or low-income rural housing loan program.