[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2517 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2517

 To establish certain programs and demonstrations to assist States and 
communities in efforts to relieve homelessness, assist local community 
 development organizations, and provide affordable rental housing for 
              low-income families, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 1993

 Mr. Gonzalez (for himself and Mrs. Roukema) introduced the following 
bill; which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To establish certain programs and demonstrations to assist States and 
communities in efforts to relieve homelessness, assist local community 
 development organizations, and provide affordable rental housing for 
              low-income families, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeless and Community Development 
Amendments Act of 1993''.

SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM.

    (a) In General.--Subtitle E of title IV of the Stewart B. McKinney 
Homeless Assistance Act is amended by adding after section 443 (42 
U.S.C. 11402) the following new section:

``SEC. 444. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM.

    ``(a) Establishment of Demonstration.--The Secretary shall carry 
out a demonstration under this section under which the Secretary may 
provide financial and technical assistance--
            ``(1) to metropolitan cities, urban counties, units of 
        general local government, Indian tribes, and private nonprofit 
        organizations to demonstrate the desirability and feasibility 
        of carrying out projects and activities that implement a work 
        plan that provides for a continuum of care for homeless persons 
        under subsection (c); and
            ``(2) to States, units of general local government, Indian 
        tribes, and private nonprofit organizations to demonstrate the 
        feasibility and desirability of carrying out innovative 
        programs to assist homeless individuals under subsection (d).
    ``(b) General Provisions.--
            ``(1) Definitions.--For purposes of this section:
                    ``(A) The terms `State', `metropolitan city', 
                `urban county', `unit of general local government', 
                `Secretary', and `Indian tribe' have the meanings given 
                such terms in section 102(a) of the Housing and 
                Community Development Act of 1974.
                    ``(B) The term `private nonprofit organization' has 
                the meaning given such term in section 422 of the 
                Stewart B. McKinney Homeless Assistance Act.
                    ``(C) The term `homeless individual' has the 
                meaning given such term in section 103 of the Stewart 
                B. McKinney Homeless Assistance Act.
            ``(2) Funding.--To such extent or in such amounts as have 
        been provided in appropriation Acts for fiscal year 1994, 
        $150,000,000 shall be available to the Secretary to carry out 
        the demonstration under this section in such fiscal year, of 
        which--
                    ``(A) $50,000,000 shall be from any amounts made 
                available to carry out the shelter plus care program 
                under subtitle F of this title in such fiscal year;
                    ``(B) $40,000,000 shall be from any amounts made 
                available to carry out the supportive housing program 
                under subtitle C of this title in such fiscal year;
                    ``(C) $25,000,000 shall be from any amounts made 
                available to carry out the HOME Investment Partnerships 
                Act in such fiscal year;
                    ``(D) $25,000,000 shall be from any amounts made 
                available to carry out the community development block 
                grants program under title I of the Housing and 
                Community Development Act of 1974 in such fiscal year; 
                and
                    ``(E) $10,000,000 shall be from any amounts made 
                available under section 402 of the Cranston-Gonzalez 
                National Affordable Housing Act to carry out the HOPE 
                homeownership programs in such fiscal year.
        Of any amounts made available to carry out the demonstration 
        under this section, 50 percent shall be available for 
        assistance under subsection (c) and 50 percent shall be 
        available for assistance under subsection (d).
    ``(c) Homeless Crisis Funding.--
            ``(1) Designation.--The Secretary shall designate such 
        metropolitan cities, urban counties, units of general local 
        government (including units in rural areas), and Indian tribes 
        as areas eligible for assistance under this subsection, as the 
        Secretary may determine. The Secretary shall establish criteria 
        for making such designations, which shall at a minimum 
        include--
                    ``(A) the extent of unmet need of homeless 
                individuals in the jurisdiction, including those who 
                are wholly without adequate shelter of any kind;
                    ``(B) the gap between the jurisdiction's existing 
                system of assisting homeless persons and the continuum 
                of care model described in paragraph (2);
                    ``(C) the degree of cooperation between the 
                jurisdiction and nonprofit homeless service providers;
                    ``(D) the degree to which private nonprofit and 
                for-profit entities express willingness to make 
                financial and other commitments to the jurisdiction's 
                homeless assistance efforts; and
                    ``(E) national geographic diversity in the 
                designation of jurisdictions.
        After selecting areas for designation under this paragraph but 
        before designating such areas, the Secretary shall consult with 
        the Committee on Banking, Finance and Urban Affairs of the 
        House of Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate regarding such designations.
            ``(2) Work plan.--To receive assistance under this 
        subsection within a designated jurisdiction, the jurisdiction 
        or a private nonprofit organization shall submit to the 
        Secretary a work plan that shall, at a minimum--
                    ``(A) describe existing conditions for homeless 
                persons and families throughout the jurisdiction;
                    ``(B) set forth a realistic and feasible strategy 
                that contains specific projects and activities 
                resulting in a continuum of care for the jurisdiction's 
                homeless persons and targets, goals, and strategies for 
                implementation and completion of such projects and 
                activities;
                    ``(C) be prepared with appropriate cooperation from 
                affected governments and government agencies, private 
                nonprofit organizations, and contributing for-profit 
                entities;
                    ``(D) specify those projects and activities for 
                which the jurisdiction requests funding from the 
                Secretary under this subsection and the amounts thereby 
                requested; and
                    ``(E) specify courses, amounts, and timetables for 
                the financing of other projects and activities.
            ``(3) Designation.--The designation referred to in 
        paragraph (1) and assistance provided under this subsection 
        shall be made on a noncompetitive basis.
    ``(d) Innovative Project Funding.--
            ``(1) Authority.--The Secretary is authorized to provide 
        assistance under this subsection to States, units of general 
        local government (including units in rural areas), Indian 
        tribes, and private nonprofit organizations for assistance for 
        innovative programs to assist homeless individuals.
            ``(2) Applications.--Applications for assistance under this 
        subsection shall be in such form, and shall include such 
        information, as the Secretary shall determine. Each application 
        shall contain, at a minimum--
                    ``(A) a description of the existing conditions for 
                homeless individuals in the jurisdiction;
                    ``(B) an explanation of how the proposed project 
                will further the efforts of the jurisdiction to meet 
                the housing and supportive services needs of homeless 
                individuals through an integrated and coordinated 
                system;
                    ``(C) evidence that the application has been 
                prepared in coordination with appropriate governmental 
                entities, private nonprofit organizations, and for-
                profit entities; and
                    ``(D) a description of the projects and activities 
                for which the applicant is requesting funding under 
                this subsection and the amounts requested.
            ``(3) Criteria.--The Secretary shall establish selection 
        criteria for awarding assistance under this subsection, which 
        shall include, at a minimum--
                    ``(A) the extent of the commitment of the applicant 
                to alleviating poverty and homelessness;
                    ``(B) the extent of the applicant's continuing 
                capacity to effectively provide assistance to homeless 
                individuals;
                    ``(C) the extent to which the project or activity 
                is innovative and may be replicable or serve as a model 
                for implementation in other jurisdictions; and
                    ``(D) diversity by geography and community type.
            ``(4) Approach.--Assistance under this subsection may be 
        used to provide innovative approaches for, or alternative means 
        of, meeting the immediate long-term needs of homeless 
        individuals by assisting--
                    ``(A) the purchase, lease, renovation, operation, 
                or conversion of facilities to assist the homeless, 
                which facilities shall be safe and sanitary and, when 
                appropriate, meet all applicable State and local 
                housing and building codes and licensing requirements;
                    ``(B) the provision of supportive services for the 
                homeless; and
                    ``(C) such other activities as the Secretary may 
                prescribe.
            ``(5) Requirements.--The Secretary shall establish 
        requirements for assistance under this subsection, which may 
        include limitations on administrative expenses, terms of 
        renewal funding for short-term lease projects, and requirements 
        for repayment of assistance under this subsection when the 
        project ceases to be used to assist the homeless in accordance 
        with the provision of this subsection.
    ``(e) Reports.--The Secretary shall submit an annual report to the 
Congress for each fiscal year in which the Secretary provides 
assistance under the demonstration under this section. The reports 
shall describe the activities carried out with assistance under the 
demonstration and set forth any findings and recommendations of the 
Secretary as a result of the demonstration. Each such report shall be 
submitted not later than the expiration of the 3-month period beginning 
upon the conclusion of the fiscal year for which the report is made.''.
    (b) Clerical Amendment.--The table of contents in section 101(b) of 
the Stewart B. McKinney Homeless Assistance Act is amended by inserting 
after the item relating to section 443 the following new item:

        ``Sec. 444. Innovative Homeless Initiatives Demonstration 
                            Program.''.

SEC. 3. MOVING TO OPPORTUNITY FOR FAIR HOUSING.

    Section 152(e) of the Housing and Community Development Act of 1992 
(42 U.S.C. 1437f note) is amended--
            (1) in the first sentence, by striking ``$52,100,000'' and 
        inserting ``$165,000,000''; and
            (2) by adding at the end the following new sentence: ``No 
        amounts appropriated for fiscal year 1994 to carry out the 
        demonstration under this section may be obligated to any public 
        housing agency or expended before the Secretary submits to the 
        Congress a report describing how amounts made available for the 
        demonstration in fiscal year 1993 were allocated and expended 
        and containing the information required in interim reports 
        under subsection (d)(1), to the extent such information is 
        available to the Secretary.

SEC. 4. ASSISTANCE FOR LOCAL COMMUNITY DEVELOPMENT ORGANIZATIONS.

    (a) Authority.--The Secretary of Housing and Urban Development may 
provide assistance under this section to the National Community 
Development Initiative for making grants under this section to 
community development support organizations for such organizations to 
assist local community development organizations in increasing their 
technical and administrative capacities and carrying out community 
development projects and activities and developing affordable housing, 
and to provide technical and predevelopment assistance relating to such 
community development and housing projects.
    (b) Assistance to Local Community Development Organizations.--A 
community development support organization that receives a grant under 
this section shall use any such amounts to carry out the following 
activities and provide the following assistance:
            (1) Capacity building.--Providing training, education, 
        support, and advice to local community development 
        organizations to enhance the technical and administrative 
        capabilities of such organizations to conduct activities under 
        paragraphs (2) and (3) and providing amounts for such 
        organizations to obtain such capacity building assistance, 
        which may include assistance to the staff, management, 
        directors, and members of such organizations regarding legal, 
        financial, construction, engineering, property management, and 
        other matters.
            (2) Community development and housing activities.--
        Providing amounts (through loans and grants) and other 
        assistance for local community development organizations to 
        carry out community development activities that benefit low-
        income families and activities to develop and support 
        affordable housing, which may include providing financing for 
        rehabilitating, constructing, acquiring, and maintaining 
        affordable housing.
            (3) Project-related predevelopment assistance.--Providing 
        technical assistance and amounts to local community development 
        organizations for predevelopment activities relating to 
        specific projects under paragraph (2), which may include 
        conducting project feasibility analyses, obtaining project 
        consultants, preparing preliminary financing applications, 
        obtaining legal, architectural, and engineering assistance, 
        site acquisition, and title clearance.
            (4) Other activities.--Other activities, as determined by 
        the National Community Development Initiative in consultation 
        with the Secretary.
    (c) Prohibition of Use of Grant Amounts for Support Organization 
Administrative Costs.--No amounts from a grant under this section may 
be used for administrative costs of a community development support 
organization.
    (d) Requirements.--The National Community Development Initiative 
may make grants under this section only to community development 
support organizations that--
            (1) submit to the Secretary an application that contains--
                    (A) a request for a grant under this section that 
                specifies the amount of the assistance requested;
                    (B) a description of the method by which the 
                community development support organization will select 
                local community development organizations to assist;
                    (C) specification of the intended beneficiaries of 
                assistance provided by the community development 
                support organization;
                    (D) measurable goals by which to determine the 
                effectiveness of the use of the grant amounts; and
                    (E) such other information as the Secretary may 
                require;
            (2) are selected by the Secretary under subsection (f); and
            (3) agree to comply with the provisions of this section and 
        provide assistance in the manner described in the application 
        of the organization approved by the Secretary.
    (e) Matching Requirement.--
            (1) In general.--The Secretary may not provide any 
        assistance to the National Community Development Initiative 
        from amounts made available for this section unless the 
        Secretary determines that an amount equal to 3 times the amount 
        to be provided by the Secretary has been made available to the 
        National Community Development Initiative from private 
        foundations and corporations for use with grant amounts for the 
        purposes under subsection (b).
            (2) Unused amounts.--Any amounts appropriated to carry out 
        this section for a fiscal year which may not be used because 
        matching amounts pursuant to paragraph (1) have not been made 
        available in the year, shall be available or committed on 
        October 1 of the next fiscal year for the purposes under 
        paragraph (1) or (2) of section 205 of the Cranston-Gonzalez 
        National Affordable Housing Act, in the discretion of the 
        Secretary.
    (f) Selection.--
            (1) In general.--The Secretary shall select community 
        development support organizations for grants under this section 
        from among organizations submitting applications under 
        subsection (d)(1).
            (2) Criteria.--The Secretary shall make selections under 
        paragraph (1) based on the information contained in the 
        applications, the capacity and experience of such organizations 
        to provide training, support, advice, and assistance to local 
        community development organizations, and such other criteria as 
        the Secretary shall establish.
            (3) Consultation.--In establishing the content of the 
        criteria under paragraph (2), the relative weight to be given 
        to the various criteria, and the process under this subsection 
        for selection of applications for grants under this section, 
        the Secretary shall consult with the National Community 
        Development Initiative and the members of such Initiative.
    (g) Reports.--
            (1) GAO.--Not later than 3 years after the date of the 
        enactment of this section, the Comptroller General of the 
        United States shall submit a report to the Congress describing 
        the effectiveness of the use, by community development support 
        organizations and local community development organizations, of 
        amounts from grants under this section.
            (2) Secretary.--Not later than 15 months after the date 
        that amounts made available pursuant to subsection (i)(1) are 
        first disbursed to the National Community Development 
        Initiative, and annually thereafter for 3 years, the Secretary 
        shall submit a report to the Congress describing the activities 
        carried out by community development support organizations and 
        local community development organizations with amounts provided 
        under this section and matching amounts, the effectiveness of 
        such activities, and any other findings of the Secretary as a 
        result of assistance provided under this section.
    (h) Definitions.--For purposes of this section:
            (1) Distressed area.--The term ``distressed area'' means an 
        area in which the percentage of the families residing in the 
        area that are low-income families is substantially higher than 
        such percentage for the region in which the area is located, or 
        that possesses other characteristics indicating a need for 
        housing or community development assistance, as determined by 
        the community development support organizations.
            (2) Grant.--The term ``grant under this section'' means a 
        grant with assistance provided under subsection (a) by the 
        Secretary from amounts appropriated pursuant to subsection 
        (i)(1). Such term does not include assistance provided with any 
        amounts made available by private foundations and corporations 
        pursuant to the requirement under subsection (e).
            (3) Local community development organizations.--The term 
        ``local community development organization'' means a nonprofit 
        organization--
                    (A) that has among its principal purposes the 
                provision of affordable housing in a distressed area or 
                conducting community development activities that 
                primarily benefit low-income families in a distressed 
                area; and
                    (B) whose governing board is comprised of business, 
                civic, and community leaders and residents of the 
                distressed area in which the organization carries out 
                its activities.
        The term includes community development corporations and 
        community housing development organizations (as such term is 
        defined in section 104 of the Cranston-Gonzalez National 
        Affordable Housing Act).
            (4) Community development support organization.--The term 
        ``community development support organization'' means a 
        nonprofit organization funded by the National Community 
        Development Initiative that--
                    (A) has among its principal purposes providing 
                assistance throughout the United States to local 
                community development organizations to facilitate such 
                local organizations' activities to develop or maintain 
                affordable housing or revitalize distressed 
                communities;
                    (B) has demonstrated experience and ability in 
                providing a range of assistance to local community 
                development organizations, which may include financing, 
                technical assistance, construction activities, property 
                management, and training; and
                    (C) meets standards of fiscal responsibility 
                established by the Secretary.
    (i) Funding.--
            (1) In general.--Amounts made available for carrying out 
        the HOME Investment Partnerships Act for fiscal year 1994 shall 
        be made available for use under this section to such extent or 
        in such amounts as are provided in appropriation Acts, except 
        that the amount so made available for use under this section 
        may not exceed $25,000,000.
            (2) Community housing partnership activities.--Section 
        205(1) of the Cranston-Gonzalez National Affordable Housing Act 
        (42 U.S.C. 12724(1)) is amended by striking ``$14,000,000'' the 
        second place it appears and inserting ``$25,000,000''.

SEC. 5. SECTION 8 COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

    (a) Authority.--Using amounts available pursuant to section 
5(c)(7)(B)(ii) of the United States Housing Act of 1937, the Secretary 
of Housing and Urban Development (in this section referred to as the 
``Secretary'') shall carry out a demonstration program to provide 
project-based rental assistance under section 8 of such Act on behalf 
of low-income families residing in housing that is constructed, 
rehabilitated, or acquired pursuant to a loan or other financing from 
an eligible pension fund.
    (b) Contract Terms.--Assistance provided under the demonstration 
under this section with respect to eligible housing--
            (1) shall be project-based assistance that is attached to 
        the eligible housing; and
            (2) shall be provided pursuant to a contract entered into 
        by the Secretary and the owner of the eligible housing that--
                    (A) provides such assistance for a term of not less 
                than 60 months and not more than 180 months; and
                    (B) provides that the contract rents for dwelling 
                units in the eligible housing shall be determined by 
                the Secretary taking into consideration any costs for 
                construction, rehabilitation, or acquisition of the 
                housing, except that such contract rent may not exceed 
                the contract rent permitted pursuant to section 8 of 
                the United States Housing Act of 1937.
    (c) Eligible Housing.--The Secretary may enter into a commitment to 
provide assistance pursuant to this section with respect to a housing 
project only if--
            (1) the housing is--
                    (A) a multifamily housing project owned by the 
                Secretary or subject to a mortgage held by the 
                Secretary that is delinquent, under a workout 
                agreement, or being foreclosed upon by the Secretary;
                    (B) designated by the Secretary under section 24(b) 
                of the United States Housing Act of 1937 as a severely 
                distressed public housing project;
                    (C) a multifamily housing project eligible for 
                assistance for troubled projects under section 201 of 
                the Housing and Community Development Amendments of 
                1978;
                    (D) a multifamily housing project located in a 
                empowerment zone or enterprise community designated 
                pursuant to Federal law; or
                    (E) any other multifamily housing project, 
                including a project to be occupied by homeless persons 
                (as such term is defined in section 103 of the Stewart 
                B. McKinney Homeless Assistance Act) or homeless 
                families;
            (2) the Secretary determines that the owner of the housing 
        has obtained commitments, satisfactory in the determination of 
        the Secretary, for financing for the construction, acquisition, 
        or rehabilitation of the housing from an eligible pension fund;
            (3) the mortgage for the housing meets such standards 
        regarding financing and securitization as the Secretary may 
        establish;
            (4) in the case of any housing that is to be constructed, 
        the Secretary determines that the owner of the housing has 
        provided reasonable assurances to the Secretary that the owner 
        will own or have control of a site for the housing (which may 
        be a suitable site different from the site specified in the 
        application under subsection (d)) not later than 12 months 
        after notification of the award of assistance under this 
        section;
            (5) the housing and any work done with respect to the 
        housing will comply with any applicable environmental laws or 
        regulations;
            (6) the construction, rehabilitation, or acquisition of the 
        housing is not inconsistent with the approved comprehensive 
        housing affordability strategy under title I of the Cranston-
        Gonzalez National Affordable Housing Act for the jurisdiction 
        in which the housing is located; and
            (7) the housing complies with any other requirements 
        established by the Secretary to carry out the demonstration 
        under this section.
    (d) Applications.--The Secretary shall provide for the owners of 
eligible housing, together with the eligible pension funds providing 
financing for the housing, to jointly submit applications for 
assistance under this section. An application shall include a 
description of the housing to be constructed, rehabilitated, or 
acquired, the location of the housing (or the site for the construction 
of the housing), the terms of the financing by the eligible pension 
fund, a request for a specific amount of assistance under this section 
for a specific term, and such other information as the Secretary may 
require.
    (e) Selection and Determination of Assistance.--The Secretary shall 
select eligible housing for assistance under this section from among 
applications submitted pursuant to subsection (d) and, subject to the 
provisions of this section, shall determine the amount of assistance to 
be provided for selected housing that is appropriate to maintain the 
affordability and feasibility of the housing.
    (f) Relation to PHA Project-Based Limit.--Project-based assistance 
provided under this section shall not be considered for purposes of any 
limitation under section 8(d)(2) of the United States Housing Act of 
1937 regarding the amount of assistance under such section that may be 
attached to the structure.
    (g) Use in Property Disposition Program.--
            (1) Authority.--Notwithstanding any provision of section 
        203 of the Housing and Community Development Amendments of 
        1978, assistance provided in connection with the disposition of 
        a multifamily housing project under such section 203 may have a 
        contract term of less than 15 years if such assistance is 
        provided (A) under a contract under the demonstration under 
        this section, and (B) pursuant to a disposition plan under such 
        section 203 for the project that is approved under such section 
        by the Secretary as otherwise in compliance with the 
        requirements of such section.
            (2) Allocation.--Of the amounts made available in each 
        fiscal year for assistance under the demonstration under this 
        section, a significant amount may be used in connection with 
        the disposition under section 203 of the Housing and Community 
        Development Amendments of 1978 of eligible housing.
    (h) Reports.--
            (1) GAO.--The Comptroller General of the United States 
        shall submit to the Congress reports under this paragraph 
        evaluating the effectiveness of the demonstration under this 
        section. Such reports shall be submitted not later than the 
        expiration of the 2-year period beginning on the date of the 
        enactment of this section and not later than the expiration of 
        the 6-month period beginning upon the termination date under 
        subsection (k).
            (2) Secretary.--The Secretary shall submit an annual report 
        to the Congress for each fiscal year in which the Secretary 
        provides assistance pursuant to contracts entered into under 
        this section. The reports shall summarize the activities 
        carried out under this section, describe the housing assisted 
        and the amounts of assistance provided, and include any 
        findings and recommendations of the Secretary as a result of 
        the demonstration under this section. Each such report shall be 
        submitted not later than the expiration of the 3-month period 
        beginning upon the conclusion of the fiscal year for which the 
        report is made.
    (i) Definitions.--For purposes of this section:
            (1) The term ``eligible housing'' means housing for which 
        the requirements under subsection (c) have been met.
            (2) The term ``eligible pension fund'' means any--
                    (A) trust, fund, plan, or other program established 
                or maintained by any employer or other person for the 
                purpose of providing income or benefits to employees 
                after the termination of employment or deferring income 
                by employees until after the termination of employment, 
                or
                    (B) other entity that invests principally the 
                amounts of any trust, fund, plan, or other program 
                referred to in subparagraph (A),
        that the Secretary considers appropriate for purposes of this 
        section.
    (j) Regulations.--The Secretary shall issue any final regulations 
necessary to carry out this section not later than the expiration of 
the 45-day period beginning on the date of the enactment of this 
section.
    (k) Termination Date.--The Secretary may not enter into any new 
commitment to provide assistance under this section after September 30, 
1998.
    (l) Funding.--Section 5(c)(7)(B)(ii) of the United States Housing 
Act of 1937 (42 U.S.C. 1437c(c)(7)(B)(ii)) is amended by inserting 
after ``8(i)(2);'' the following: ``and of which not more than 
$100,000,000 shall be available for the community investment 
demonstration program under section 5 of the Homeless and Community 
Development Amendments Act of 1993;''.

                                 <all>

HR 2517 IH----2