[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3838 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3838

  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 1994

 Mr. Gonzalez (for himself, Mrs. Roukema, Mr. Neal of North Carolina, 
Mr. LaFalce, Mr. Vento, Mr. Frank of Massachusetts, Mr. Kanjorski, Mr. 
Kennedy, Mr. Flake, Mr. Mfume, Ms. Waters, Mr. Bacchus of Florida, Mr. 
 Klein, Mr. Deutsch, Mr. Gutierrez, Mr. Rush, Ms. Velazquez, Mr. Wynn, 
    Mr. Fields of Louisiana, Mr. Watt, Mr. Hinchey, and Ms. Furse) 
 introduced the following bill; which was referred to the Committee on 
                   Banking, Finance and Urban Affairs

                             April 25, 1994

Additional sponsors: Mr. Neal of Massachusetts, Mr. Foglietta, and Mr. 
                                Sanders

_______________________________________________________________________

                                 A BILL


 
  To amend and extend certain laws relating to housing and community 
                  development, 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 Title.--This Act may be cited as the ``Housing and 
Community Development Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
                      TITLE I--HOUSING ASSISTANCE

                     Subtitle A--General Provisions

Sec. 101. Low-income housing authorization.
Sec. 102. Definition of ``families''.
Sec. 103. Family self-sufficiency program.
                 Subtitle B--Public and Indian Housing

Sec. 111. Disallowance of earned income for residents who obtain 
                            employment.
Sec. 112. Ceiling rents.
Sec. 113. Major reconstruction of obsolete projects.
Sec. 114. New construction of projects for disabled families.
Sec. 115. Public housing operating subsidies.
Sec. 116. Elimination of requirement to identify CIAP replacement 
                            needs.
Sec. 117. Public housing vacancy reduction.
Sec. 118. Replacement housing for demolished or disposed public 
                            housing.
Sec. 119. Public housing resident management.
Sec. 120. Public housing family investment centers.
Sec. 121. Revitalization of severely distressed public housing.
Sec. 122. Applicability of public housing amendments to Indian housing.
Sec. 123. Public housing early childhood development services.
Sec. 124. Indian housing childhood development services.
Sec. 125. Public housing one-stop perinatal services demonstration.
                    Subtitle C--Section 8 Assistance

Sec. 141. Moving to opportunity for fair housing.
Sec. 142. Community investment demonstration program.
Sec. 143. Restatement and revision of section 8 rental assistance 
                            program.
                   Subtitle D--Homeownership Programs

Sec. 151. HOPE homeownership programs.
Sec. 152. National Homeownership Trust.
Sec. 153. Section 235 mortgage refinancing.
                       Subtitle E--Other Programs

Sec. 161. Community partnerships against crime.
Sec. 162. Public housing youth sports programs.
Sec. 163. Low-income housing preservation.
Sec. 164. Flexible subsidy program.
Sec. 165. Housing counseling.
Sec. 166. Preventing mortgage defaults on multifamily housing projects.
Sec. 167. Youthbuild program.
                 TITLE II--HOME INVESTMENT PARTNERSHIPS

Sec. 201. Authorization of appropriations.
Sec. 202. Participation by State agencies or instrumentalities.
Sec. 203. Simplification of program-wide income targeting for rental 
                            housing.
Sec. 204. Homeownership units.
Sec. 205. Comprehensive affordable housing strategy.
Sec. 206. Simplification of matching requirements.
Sec. 207. Repeal of separate audit requirement.
Sec. 208. Environmental review requirements.
Sec. 209. Use of CDBG funds for HOME program expenses.
Sec. 210. GAO study of use of HOME program funds.
Sec. 211. Capacity building for community development and affordable 
                            housing.
Sec. 212. Applicability and regulations.
                 TITLE III--SUPPORTIVE HOUSING PROGRAMS

Sec. 301. Funding for supportive housing for the elderly and for 
                            persons with disabilities.
Sec. 302. Elder cottage housing demonstration program.
Sec. 303. Revised congregate services.
Sec. 304. Elderly independence demonstration.
Sec. 305. Housing opportunities for persons with AIDS.
Sec. 306. Service coordinators.
       TITLE IV--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET

       Subtitle A--Mortgage Insurance and Loan Guarantee Programs

Sec. 401. Limitation on insurance authority.
Sec. 402. Federal Housing Administration Advisory Board.
Sec. 403. Home equity conversion mortgages for elderly homeowners.
Sec. 404. Multifamily housing financing programs.
Sec. 405. Indian housing loan guarantees.
          Subtitle B--Multifamily Housing Property Disposition

Sec. 431. Short title.
Sec. 432. Disposition of multifamily housing projects owned by HUD.
Sec. 433. Clarification of public housing preferences.
Sec. 434. Amendment to National Housing Act.
Sec. 435. Effective date.
             Subtitle C--Secondary Mortgage Market Programs

Sec. 451. Limitation on GNMA guarantees of mortgage-backed securities.
                 Subtitle D--Emergency Mortgage Relief

Sec. 471. Amendments to Emergency Homeowners' Relief Act.
                         TITLE V--RURAL HOUSING

Sec. 501. Program authorizations.
Sec. 502. Section 502 homeownership loans.
Sec. 503. Prepayment of rural rental housing loans.
Sec. 504. Designation of underserved areas and reservation of 
                            assistance.
Sec. 505. Administrative appeals.
Sec. 506. Section 515 rural rental housing.
Sec. 507. Rental assistance payments.
Sec. 508. Rural housing assistance targeting report.
Sec. 509. Priority for rural housing voucher assistance.
Sec. 510. Native American rural housing capacity demonstration program.
Sec. 511. Rural community development initiative.
Sec. 512. Rural housing loan delegated processing demonstration.
                    TITLE VI--COMMUNITY DEVELOPMENT

         Subtitle A--Community Development Block Grant Program

Sec. 601. Authorization of appropriations and guarantee authority.
Sec. 602. Economic development grants.
Sec. 603. Guarantee of obligations backed by section 108 loans.
Sec. 604. Section 108 loan guarantees for colonias.
Sec. 605. Assistance for colonias.
            Subtitle B--Other Community Development Programs

Sec. 631. Neighborhood Reinvestment Corporation.
Sec. 632. John Heinz neighborhood development program.
            TITLE VII--REGULATORY AND MISCELLANEOUS PROGRAMS

Sec. 701. Fair housing initiatives program.
Sec. 702. HUD program monitoring and research.
Sec. 703. HUD salaries and expenses.
Sec. 704. Subsidy layering review.
Sec. 705. HUD research and development.
Sec. 706. National Institute of Building Sciences.
Sec. 707. Residential lead-based paint hazard reduction.
Sec. 708. New towns demonstration program for emergency relief of Los 
                            Angeles.
Sec. 709. Solar assistance financing entity.
Sec. 710. National American Indian Housing Council.
Sec. 711. Housing Assistance Council.
    TITLE VIII--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS 
                             ASSISTANCE ACT

Sec. 801. Short title.
                     Subtitle A--Housing Assistance

Sec. 811. Emergency shelter grants program.
Sec. 812. Supportive housing program.
Sec. 813. Safe havens for homeless individuals demonstration program.
Sec. 814. Section 8 assistance for single room occupancy dwellings.
Sec. 815. Shelter plus care program.
Sec. 816. Rural homelessness grant program.
Sec. 817. Strategy to eliminate unfit transient facilities.
Sec. 818. Innovative homeless initiatives demonstration program.
            Subtitle B--Interagency Council on the Homeless

Sec. 831. Authorization of appropriations.
Sec. 832. Extension.
   Subtitle C--Federal Emergency Management Food and Shelter Program

Sec. 851. Authorization of appropriations.

SEC. 2. EFFECTIVE DATE.

    The provisions of this Act and the amendments made by this Act 
shall take effect and shall apply upon the date of the enactment of 
this Act, unless such provisions or amendments specifically provide for 
effectiveness or applicability upon another date certain.

                      TITLE I--HOUSING ASSISTANCE

                     Subtitle A--General Provisions

SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

    (a) Aggregate Budget Authority.--Section 5(c)(6) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by adding 
at the end the following new sentence: ``The aggregate amount of budget 
authority that may be obligated for assistance referred to in paragraph 
(7) is increased (to the extent approved in appropriation Acts) by 
$8,603,634,603 on October 1, 1994, and by $8,860,274,842 on October 1, 
1995.''.
    (b) Utilization of Budget Authority.--Section 5(c)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by 
striking the paragraph designation and all that follows through the end 
of subparagraph (B) and inserting the following:
    ``(7)(A) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1995, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $891,772,592, of which amount not more than 
        $276,171,263 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,122,546,291, of which $20,000,000 shall be available for 15-
        year contracts for project-based assistance to be used for a 
        multicultural tenant empowerment and homeownership project 
        located in the District of Columbia;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $122,776,000;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,327,106,000;
            ``(v) for assistance under section 8 for family unification 
        under subsection (q)(3) of such section, not more than 
        $107,326,000;
            ``(vi) for assistance under section 8(o)(4) for families 
        utilizing the portability of assistance under section 8, 
        $100,000,000;
            ``(vii) for assistance under section 8 for property 
        disposition, not more than $571,650,000;
            ``(viii) for assistance under section 8 for loan 
        management, not more than $216,798,520;
            ``(ix) for extensions of contracts expiring under section 
        8, such sums as may be necessary, which shall be for 5-year 
        contracts for assistance under section 8 and vouchers under 
        section 8(o) (as in effect before the date of the enactment of 
        this Act) and for loan management assistance under such 
        section;
            ``(x) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(xi) for adjustments to annual contributions contracts 
        for public housing and section 8 assistance for the costs of 
        providing service coordinators under sections 9(a)(1)(B)(ii), 
        8(i)(4), and 8(n)(3), not more than $93,112,000;
            ``(xii) for public housing lease adjustments and 
        amendments, such sums as may be necessary;
            ``(xiii) for assistance under section 18(e) for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $200,000,000, of which not more than 75 percent 
        shall be available for providing public housing units and not 
        more than 25 percent shall be available for providing 
        assistance under section 8;
            ``(xiv) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, not more than $3,960,000; and
            ``(xv) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than $801,587,200.
    ``(B) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1996, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $918,525,770, of which amount not more than 
        $284,456,401 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,186,222,680, of which $20,000,000 shall be available for 15-
        year contracts for project-based assistance to be used for a 
        multicultural tenant empowerment and homeownership project 
        located in the District of Columbia;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $126,459,280;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,426,919,180;
            ``(v) for assistance under section 8 for family unification 
        under subsection (q)(3) of such section, not more than 
        $110,545,780;
            ``(vi) for assistance under section 8(o)(4) for families 
        utilizing the portability of assistance under section 8, 
        $103,000,000;
            ``(vii) for assistance under section 8 for property 
        disposition, not more than $588,799,500;
            ``(viii) for assistance under section 8 for loan 
        management, not more than $223,302,476;
            ``(ix) for extensions of contracts expiring under section 
        8, such sums as may be necessary, which shall be for 5-year 
        contracts for assistance under section 8 and vouchers under 
        section 8(o) (as in effect before the date of the enactment of 
        this Act) and for loan management assistance under such 
        section;
            ``(x) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(xi) for adjustments to annual contributions contracts 
        for public housing and section 8 assistance for the costs of 
        providing service coordinators under sections 9(a)(1)(B)(ii), 
        8(i)(4), and 8(n)(3), not more than $95,905,360;
            ``(xii) for public housing lease adjustments and 
        amendments, such sums as may be necessary;
            ``(xiii) for assistance under section 18(e) for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $206,000,000, of which not more than 75 percent 
        shall be available for providing public housing units and not 
        more than 25 percent shall be available for providing 
        assistance under section 8;
            ``(xiv) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, not more than $3,960,000; and
            ``(xv) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than 
        $825,634,816.''.

SEC. 102. DEFINITION OF ``FAMILIES''.

    The first sentence of section 3(b)(3)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(B)) is amended by striking 
``means families with children'' and inserting ``includes families with 
children and''.

SEC. 103. FAMILY SELF-SUFFICIENCY PROGRAM.

    (a) Funding.--The last sentence of section 23(h)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended to read 
as follows: ``There are authorized to be appropriated for costs under 
this paragraph $26,677,000 for fiscal year 1995 and $27,477,310 for 
fiscal year 1996.''.
    (b) Voluntary Escrow Savings Account.--Section 23(d) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended--
            (1) in paragraph (2)--
                    (A) in the 1st sentence, by striking ``shall'' and 
                inserting ``may'';
                    (B) in the 2nd sentence, by inserting after ``area 
                median income'' the following: ``that choose to escrow 
                amounts under this paragraph'';
                    (C) by striking the 3rd and 4th sentences and 
                inserting the following new sentence: ``Amounts in the 
                escrow account may be withdrawn by the participating 
                family upon the successful performance of the 
                obligations of the family under the contract of 
                participation entered into by the family under 
                subsection (c), as determined according to the specific 
                goals and terms included in the contract, and under 
                other circumstances, as determined by the public 
                housing agency with the approval of the Secretary.''; 
                and
            (2) by striking the 2d sentence of paragraph (3) and 
        inserting the following new sentence: ``The plan may require 
        the establishment of escrow savings accounts under paragraph 
        (2), a description of the procedures for release of escrowed 
        amounts, and any other incentives designed by the public 
        housing agency.''.
    (c) Repeal of Incentive Award Allocation.--Section 23 of the United 
States Housing Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsections (j) through (o) as 
        subsections (i) through (n), respectively.

                 Subtitle B--Public and Indian Housing

SEC. 111. DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO OBTAIN 
              EMPLOYMENT.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a) is amended by striking the undesignated paragraph at 
the end of subsection (c)(3) (as added by section 515(b) of the 
Cranston-Gonzalez National Affordable Housing Act) and inserting the 
following new subsection:
    ``(d) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            ``(1) In general.--Subject only to paragraph (2), the rent 
        payable under subsection (a) for any public housing unit by a 
        family whose income increases as a result of employment of a 
        member of the family who was previously unemployed for one or 
        more years may not be increased for a period of 18 months 
        (beginning upon the commencement of employment) as a result of 
        the increased income due to such employment.
            ``(2) Budget compliance.--To the extent that paragraph (1) 
        results in additional costs under this Act, the provisions of 
        such paragraph shall be effective only to the extent that 
        amounts to cover such additional costs are provided in advance 
        in appropriation Acts.''.
    (b) Applicability of Amendment.--Notwithstanding the amendment made 
by subsection (a), any resident of public housing participating in the 
program under the authority contained in the undesignated paragraph at 
the end of section 3(c)(3) of the United States Housing Act of 1937 (as 
such paragraph existed before the date of enactment of this subsection) 
shall continue to be governed by such authority.
    (c) Conforming Amendment.--Section 957(a) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12714(a)) is amended by 
striking ``Notwithstanding any other law and subject'' and inserting 
``Subject only to the provisions of section 3(d) of the United States 
Housing Act of 1937 and''.

SEC. 112. CEILING RENTS.

    (a) Determination Based Upon Reasonable Rental Value.--Section 
3(a)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(a)(2)(A)(iii)) is amended to read as follows:
            ``(iii) is not less than the reasonable rental value of the 
        unit, as determined by the Secretary.''.
    (b) Limitation of Benefit Derived.--Section 3(a)(2) of the United 
States Housing Act of 1937 is amended--
            (1) in subparagraph (A), by striking ``Any'' and inserting 
        ``Except as provided in subparagraph (B), any'';
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
    ``(B) A public housing agency may not determine the monthly rent 
under subparagraph (A) for any family residing in a public housing 
project of the agency who, for the entire duration of a period of 36 
consecutive months (such period beginning after the date of the 
enactment of the Housing and Community Development Act of 1994), has 
(i) had an income exceeding the income of a low-income family, and (ii) 
has paid as monthly rent for a dwelling unit in any project 
administered by the agency an amount determined pursuant to 
subparagraph (A). The monthly rent for a dwelling unit in public 
housing for such a family shall be the amount determined under 
paragraph (1).''.
    (c) Regulations.--The Secretary shall, by notice published in the 
Federal Register, establish such requirements as may be necessary to 
carry out the provisions of subparagraphs (A) and (B) of section 
3(a)(2) of the United States Housing Act of 1937, as amended by this 
section. The Secretary shall issue final regulations to carry out the 
provisions of such section, based on such notice, after providing 
opportunity for public comment on the notice.

SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS.

    (a) Assistance for Reconstruction.--Section 5(j)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)) is amended--
            (1) in subparagraph (A), by striking ``Notwithstanding'' 
        and all that follows through ``fiscal year'' and inserting the 
        following: ``The Secretary may provide assistance under this 
        paragraph'';
            (2) in subparagraph (C), by striking ``reserved'' and 
        inserting ``made available for assistance'';
            (3) in subparagraph (F)(i), by striking ``reserved or''; 
        and
            (4) in subparagraph (G)(i), by striking ``reserved under 
        subparagraph (A)'' and inserting ``made available for use under 
        this paragraph''.
    (b) Set-Aside for Disabled Families.--Section 5(j)(2)(G)(i) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)(G)(i)) is 
amended by striking ``fiscal years 1993 and 1994'' and inserting 
``fiscal years 1995 and 1996''.

SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DISABLED FAMILIES.

    Section 5(j)(3)(A) of the United States Housing Act of 1937 (42 
U.S.C. 1437c(j)(3)(A)) is amended by striking ``fiscal years 1993 and 
1994'' and inserting ``fiscal years 1995 and 1996''.

SEC. 115. PUBLIC HOUSING OPERATING SUBSIDIES.

    Section 9(c) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(c)) is amended--
            (1) in paragraph (1), by striking ``There'' and all that 
        follows and inserting the following new sentence: ``There are 
        authorized to be appropriated for purposes of providing annual 
        contributions under this section $2,750,000,000 for fiscal year 
        1995 and $2,832,500,000 for fiscal year 1996.''.
            (2) in paragraph (2), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (3) in paragraph (3), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''.

SEC. 116. ELIMINATION OF REQUIREMENT TO IDENTIFY CIAP REPLACEMENT 
              NEEDS.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 
1437l) is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (4), in the matter preceding 
                subparagraph (A)--
                            (i) by striking ``and replacements,''; and
                            (ii) by striking ``(1), (2), and (3)'' and 
                        inserting ``(1) and (2)''; and
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
            (2) in subsection (f)(1)--
                    (A) in subparagraph (A), by striking ``(d)(4)(A)'' 
                and inserting ``(d)(3)(A)'';
                    (B) by striking subparagraph (B);
                    (C) in subparagraph (C), by striking ``(d)(4)'' and 
                inserting ``(d)(3)''; and
                    (D) in subparagraph (D)--
                            (i) by striking ``(1), (2), and (3)'' and 
                        inserting ``(1) and (2)''; and
                            (ii) by striking ``(d)(4)'' and inserting 
                        ``(d)(3)'';
            (3) in subsection (g), by striking ``(d)(4)'' and inserting 
        ``(d)(3)''; and
            (4) in subsection (h)(2), by striking ``(d)(4)'' and 
        inserting ``(d)(3)''.

SEC. 117. PUBLIC HOUSING VACANCY REDUCTION.

    Section 14(p)(6)(A) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(p)(6)(A)) is amended by striking ``fiscal years 1993 and 
1994'' and inserting ``fiscal years 1995 and 1996''.

SEC. 118. REPLACEMENT HOUSING FOR DEMOLISHED OR DISPOSED PUBLIC 
              HOUSING.

    Section 18(e) of the United States Housing Act of 1937 (42 U.S.C. 
1437p) is amended to read as follows:
    ``(e) Assistance for Replacement Housing.--The Secretary may 
provide assistance under this subsection for--
            ``(1) providing replacement public housing units pursuant 
        to subsection (b)(3)(A) for units demolished or disposed of 
        pursuant to this section; and
            ``(2) providing assistance under section 8 for replacement 
        housing pursuant to subsection (b)(3)(A) for units demolished 
        or disposed of pursuant to this section.''.

SEC. 119. PUBLIC HOUSING RESIDENT MANAGEMENT.

    Section 20(f)(3) of the United States Housing Act of 1937 (42 
U.S.C. 1437r(f)(3)) is amended to read as follows:
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $5,000,000 for fiscal year 1995 and $5,000,000 for fiscal year 
        1996.''.

SEC. 120. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

    Section 22(k) of the United States Housing Act of 1937 (42 U.S.C. 
1437t(k)) is amended to read as follows:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $26,831,500 for fiscal year 1995 
and $27,636,445 for fiscal year 1996.''.

SEC. 121. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) Planning Grants.--Subsection (c) of section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v(c)) is amended--
            (1) in paragraph (2) by striking ``$200,000'' and inserting 
        ``$500,000'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (E) through (I) 
                as subparagraphs (F) through (J), respectively; and
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) planning for community service activities to 
                be carried out by residents, other members of the 
                community, and other persons willing to contribute to 
                the social, economic, or physical improvement of the 
                community;''; and
            (3) in paragraph (4)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service activities, a description 
                of the planning activities for community service to be 
                carried out by residents, other members of the 
                community, and other persons willing to contribute to 
                the social, economic, or physical improvement of the 
                community;''.
    (b) Implementation Grants.--Subsection (d) of section 24 of the 
United States Housing Act of 1937 is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (I), by striking ``except 
                that'' and all that follows and inserting the 
                following: ``except that--
                            ``(i) not more than 20 percent of any grant 
                        under this subsection may be used for such 
                        purpose; and
                            ``(ii) an amount equal to 15 percent of the 
                        amount of any grant under this subsection used 
                        for such purposes shall be contributed from 
                        non-Federal sources, and may be in the form of 
                        cash, administrative costs, and the reasonable 
                        value of in-kind contributions, and may include 
                        funding under title I of the Housing and 
                        Community Development Act of 1974.'';
                    (B) by redesignating subparagraphs (E) through (I) 
                (as so amended) as subparagraphs (F) through (J), 
                respectively; and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) community service activities to be carried 
                out by residents, other members of the community, and 
                other persons willing to contribute to the social, 
                economic, or physical improvement of the community;'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service activities, a description 
                of the community service activities to be carried out 
                by residents, other members of the community, and other 
                persons willing to contribute to the social, economic, 
                or physical improvement of the community;''; and
            (3) in paragraph (4)(D), by striking ``the potential of the 
        applicant for developing a successful and affordable'' and 
        inserting ``the quality of the proposed''.
    (c) Definitions.--Subsection (h) of section 24 of the United States 
Housing Act of 1937 is amended--
            (1) by striking paragraph (5) and inserting the following 
        new paragraphs:
            ``(6) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public housing 
        project or building in a project that--
                    ``(A) requires major redesign, reconstruction, or 
                redevelopment, or partial or total demolition, to 
                correct serious deficiencies in the original design 
                (including inappropriately high population density), 
                deferred maintenance, physical deterioration or 
                obsolescence or major systems, and other deficiencies 
                in the physical plant of the project;
                    ``(B) is--
                            ``(i)(I) occupied predominantly by families 
                        with children which have extremely low incomes, 
                        high rates of unemployment, and extensive 
                        dependency on various forms of public 
                        assistance; and
                            ``(II) has high rates of vandalism and 
                        criminal activity (including drug-related 
                        criminal activity); or
                            ``(ii) has a vacancy rate, as determined by 
                        the Secretary, of 50 percent or more;
                    ``(C) can not be revitalized through assistance 
                under other programs, such as the programs under 
                sections 9 and 14, or through other administrative 
                means because of the inadequacy of available amounts; 
                and
                    ``(D) in the case of an individual building, the 
                building is (in the determination of the Secretary) 
                sufficiently separable from the remainder of the 
                project of which the building is part to make use of 
                the building feasible for purposes of this section.
            ``(7) Support services.--The term `support services' 
        includes all activities which will promote upward mobility, 
        self-sufficiency, and improved quality of life for the 
        residents of the public housing project involved, and shall 
        include literacy training, job training, day care, and economic 
        development activities. Support services may be provided to 
        residents of the neighborhood in which the public housing 
        project involved is located.'';
            (2) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Community service.--The term `community service' 
        means services provided on a volunteer or limited stipend basis 
        for the social, economic, or physical improvement of the 
        community to be served, including opportunity for the upward 
        mobility of participants providing the community service, 
        through completion of education requirements, job training, or 
        alternative methods of developing skills and job readiness.''.

SEC. 122. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) Amendment.--Section 201(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:
    ``(b) Applicability of Title I.--Except as otherwise provided by 
law, the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall not affect provisions of the United States Housing Act of 
1937 that were made applicable to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority in accordance with section 201(b)(2) of such Act, as such 
section existed before the effective date of this section.
    (c) Applicability of Housing and Community Development Act of 
1992.--Sections 103(a)(1), 112, 114, 116, 118, 903, and 927 of the 
Housing and Community Development Act of 1992 shall apply to public 
housing developed or operated pursuant to a contract between the 
Secretary and an Indian housing authority.

SEC. 123. PUBLIC HOUSING EARLY CHILDHOOD DEVELOPMENT SERVICES.

    Section 222(g) of the Housing and Urban-Rural Recovery Act of 1983 
(12 U.S.C. 1701z-6 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $15,000,000 for fiscal year 1995 
and $15,450,000 for fiscal year 1996. Any amounts appropriated to carry 
out this section shall remain available until expended.''.

SEC. 124. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES.

    (a) Funding.--Section 518(a) of the Cranston-Gonzalez National 
Affordable Housing Act (12 U.S.C. 1701z-6 note) is amended by striking 
the first and second sentences and inserting the following new 
sentence: ``There are authorized to be appropriated to carry out the 
demonstration program under this section $5,580,540 for fiscal year 
1995 and $5,747,956 for fiscal year 1996.''.

SEC. 125. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION.

    Section 521(g) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 1437t note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out the demonstration program under this 
section $214,652 for fiscal year 1995 and $221,092 for fiscal year 
1996.''.

                    Subtitle C--Section 8 Assistance

SEC. 141. MOVING TO OPPORTUNITY FOR FAIR HOUSING.

    (a) Authorization of Appropriations.--Section 152(e) of the Housing 
and Community Development Act of 1992 (42 U.S.C. 1437f note) is amended 
by striking the first sentence and inserting the following new 
sentence: ``The budget authority available under section 5(c) of the 
United States Housing Act of 1937 for tenant-based assistance under 
section 8 of such Act is authorized to be increased by $176,387,500, on 
or after October 1, 1994, and by $181,679,125, on or after October 1, 
1995, to carry out the demonstration under this section.''.
    (b) Counseling.--The second sentence of section 106(a)(3) of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(a)(3)) is 
amended to read as follows: ``Of the amounts appropriated for purposes 
of this subsection for each of fiscal years 1995 and 1996, up to 
$500,000 shall be available for use for counseling and other activities 
in connection with the demonstration program under section 152 of the 
Housing and Community Development Act of 1992.''.

SEC. 142. COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

    Section 6(j) of the HUD Demonstration Act of 1993 (42 U.S.C. 1437f 
note) is amended to read as follows:
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $103,000,000 for fiscal year 
1995 and $106,090,000 for fiscal year 1996.''.

SEC. 143. RESTATEMENT AND REVISION OF SECTION 8 RENTAL ASSISTANCE 
              PROGRAM.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended to read as follows:

          ``rental housing assistance for low-income families

    ``Sec. 8. (a) Authority and Purpose.--
            ``(1) In general.--For the purposes of aiding low-income 
        families in obtaining a decent place to live and promoting 
        economically mixed housing, the Secretary may provide 
        assistance payments with respect to existing housing in 
        accordance with the provisions of this section.
            ``(2) Elderly housing.--Notwithstanding any other provision 
        of this Act, assistance payments under this section may be 
        provided, in accordance with regulations prescribed by the 
        Secretary, with respect to some or all of the units in any 
        project approved pursuant to section 202 of the Housing Act of 
        1959 (as in effect before October 1, 1991).
    ``(b) Annual Contributions Contracts for Rental Assistance.--
            ``(1) In general.--The Secretary may enter into annual 
        contributions contracts under this subsection with public 
        housing agencies to provide rental housing assistance under 
        this section for low-income families. The Secretary shall enter 
        into a separate annual contributions contract with each public 
        housing agency to obligate the authority approved each year. 
        Each such annual contributions contract shall bind the 
        Secretary to make such authority, and any amendments increasing 
        such authority, available to the public housing agency for a 
        specified period.
            ``(2) Secretary acting as pha.--In areas where no public 
        housing agency has been organized or where the Secretary 
        determines that a public housing agency is unable to implement 
        the provisions of this section, the Secretary may enter into 
        such contracts and perform the other functions assigned to a 
        public housing agency by this section.
            ``(3) Treatment of assistance for supportive housing for 
        the disabled.--The Secretary may not consider the receipt by a 
        public housing agency of assistance under section 811(b)(1) of 
        the Cranston-Gonzalez National Affordable Housing Act, or the 
        amount received, in approving assistance under this section for 
        the agency or in determining the amount of such assistance to 
        be provided to the agency.
    ``(c) Assistance Contracts.--
            ``(1) In general.--Each public housing agency that receives 
        amounts under an annual contributions contract may enter into 
        assistance contracts to make rental assistance payments to 
        owners of existing dwelling units in accordance with the 
        provisions of this section.
            ``(2) PHA acting as owner.--A public housing agency may 
        contract to make rental assistance payments under this section 
        to itself (or any agency or instrumentality thereof) as the 
        owner of dwelling units, and the agency shall be subject to the 
        same program requirements as are applied to other owners. In 
        such cases, the Secretary may establish initial rents within 
        applicable limits.
            ``(3) Inapplicable provisions.--Sections 5(e) and 6 and any 
        other provisions of this Act that are inconsistent with the 
        provisions of this section shall not apply to assistance 
        contracts entered into pursuant to this section.
    ``(d) Maximum Monthly Rent.--
            ``(1) In general.--Each assistance contract entered into 
        pursuant to this section shall establish the maximum monthly 
        rent (including utilities and all maintenance and management 
        charges) that the owner is entitled to receive for each 
        dwelling unit for which rental assistance payments are to be 
        made under the contract. Except as provided in paragraph (2), 
        the maximum monthly rent shall not exceed by more than 10 
        percent the fair market rental under subsection (e) for the 
        market area in which the dwelling unit is located. If units 
        assisted under this section are exempt from local rent control 
        while they are so assisted or otherwise, the maximum monthly 
        rent for such units shall be reasonable in comparison with 
        other units in the market area that are exempt from local rent 
        control.
            ``(2) Exception.--The maximum monthly rent may exceed the 
        fair market rental by more than 10 but not more than 20 
        percent, but only if the Secretary determines that special 
        circumstances warrant such higher maximum rent or that such 
        higher rent is necessary to the implementation of a 
        comprehensive housing affordability strategy under section 105 
        of the Cranston-Gonzalez National Affordable Housing Act.
            ``(3) Annual adjustments.--Each assistance contract shall 
        provide for adjustment in the maximum monthly rents for units 
        covered by the contract not less than annually to reflect 
        changes in the fair market rentals established under subsection 
        (e) for the housing area for similar types and sizes of 
        dwelling units or, if the Secretary determines, on the basis of 
        a reasonable formula.
            ``(4) Adjustments due to expenses.--Each assistance 
        contract shall further provide for the Secretary to make 
        additional adjustments in the maximum monthly rent for units 
        assisted under the contract to the extent the Secretary 
        determines such adjustments are necessary to reflect increases 
        in the actual and necessary expenses of owning and maintaining 
        the units that have resulted from substantial general increases 
        in real property taxes, utility rates, or similar costs that 
        are not adequately compensated for by the adjustment in the 
        maximum monthly rent authorized by paragraph (3). The Secretary 
        shall make additional adjustments in the maximum monthly rent 
        for units under contract (subject to the availability of 
        appropriations for contract amendments) to the extent the 
        Secretary determines such adjustments are necessary to reflect 
        increases in the actual and necessary expenses of owning and 
        maintaining the units that have resulted from the expiration of 
        a real property tax exemption.
            ``(5) Adjustments due to criminal activity.--If the 
        Secretary determines that a project assisted under this section 
        is located in a community where criminal activity is generally 
        prevalent and the operating, maintenance, and capital repair 
        expenses for the project have been substantially increased 
        primarily as a result of the prevalence of such activity, the 
        Secretary may (at the discretion of the Secretary and subject 
        to the availability of appropriations for contract amendments 
        for this purpose), on a project-by-project basis, provide 
        adjustments to the maximum monthly rents, to a level not 
        exceeding 120 percent of the project rents, to cover the costs 
        of maintenance, security, capital repairs, and reserves 
        required for the owner to carry out a strategy acceptable to 
        the Secretary for addressing the problem of criminal activity. 
        The Secretary may waive the applicability of any rent 
        comparability standard required under this subsection to 
        implement this paragraph.
            ``(6) Adjustments due to lead-based paint reduction for 
        housing receiving project-based assistance.--The Secretary may 
        (at the discretion of the Secretary and subject to the 
        availability of appropriations for contract amendments), on a 
        project-by-project basis for projects receiving project-based 
        assistance, provide adjustments to the maximum monthly rents to 
        cover the costs of evaluating and reducing lead-based paint 
        hazards, as defined in section 1004 of the Residential Lead-
        Based Paint Hazard Reduction Act of 1992.
            ``(7) Limitations on adjustments.--
                    ``(A) General comparability rule.--Adjustments in 
                the maximum rents under paragraphs (3) through (6) 
                shall not result in material differences between the 
                rents charged for assisted units and unassisted units 
                of similar quality, type, and age in the same market 
                area, as determined by the Secretary.
                    ``(B) Comparability studies.--
                            ``(i) To carry out subparagraph (A), the 
                        Secretary shall issue regulations to provide 
                        for conducting comparability studies for 
                        projects where the Secretary has reason to 
                        believe that the application of the formula 
                        adjustments under paragraph (3) would result in 
                        such material differences. The Secretary shall 
                        conduct such studies upon the request of any 
                        owner of any project, or as the Secretary 
                        determines to be appropriate by establishing, 
                        to the extent practicable, a modified annual 
                        adjustment factor for such market area, as the 
                        Secretary shall designate, that is 
                        geographically smaller than the applicable 
                        housing area used for the establishment of the 
                        annual adjustment factor under paragraph (3). 
                        The Secretary shall establish such modified 
                        annual adjustment factor on the basis of the 
                        results of a study conducted by the Secretary 
                        of the rents charged, and any change in such 
                        rents over the previous year, for assisted 
                        units and unassisted units of similar quality, 
                        type, and age in the smaller market area. Where 
                        the Secretary determines that such modified 
                        annual adjustment factor cannot be established 
                        or that such factor when applied to a 
                        particular project would result in material 
                        differences between the rents charged for 
                        assisted units and unassisted units of similar 
                        quality, type, and age in the same market area, 
                        the Secretary may apply an alternative 
                        methodology for conducting comparability 
                        studies in order to establish rents that are 
                        not materially different from rents charged for 
                        comparable unassisted units.
                            ``(ii) If the Secretary or appropriate 
                        State agency does not complete and submit to 
                        the project owner a comparability study not 
                        later than 60 days before the anniversary date 
                        of the assistance contract under this section, 
                        the automatic annual adjustment factor shall be 
                        applied. The Secretary may not reduce the 
                        contract rents in effect on or after April 15, 
                        1987, for newly constructed, substantially 
                        rehabilitated, or moderately rehabilitated 
                        projects assisted under this section (including 
                        projects assisted under this section as in 
                        effect prior to November 30, 1983), unless the 
                        project has been refinanced in a manner that 
                        reduces the periodic payments of the owner. Any 
                        maximum monthly rent that has been reduced by 
                        the Secretary after April 14, 1987, and prior 
                        to November 7, 1988, shall be restored to the 
                        maximum monthly rent in effect on April 15, 
                        1987.
                            ``(iii) 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 
                        original 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, multiplied by the number of months that 
                        the reduced maximum monthly rents were in 
                        effect.
    ``(e) Fair Market Rentals.--
            ``(1) In general.--The Secretary shall establish fair 
        market rentals under this subsection periodically, but not less 
        than annually, for existing rental dwelling units suitable for 
        occupancy by low-income families assisted under this section. 
        The Secretary shall establish the fair market rental by market 
        area for various sizes and types of dwelling units.
            ``(2) Effectiveness and adjustment.--The Secretary shall 
        publish proposed fair market rentals for each area in the 
        Federal Register with reasonable time for public comment, and 
        such fair market rentals shall become effective upon the date 
        of publication in final form in the Federal Register. Each fair 
        market rental in effect under this subsection shall be adjusted 
        to be effective on October 1 of each year to reflect changes, 
        based on the most recent available data trended so the rentals 
        will be current for the year to which they apply, of rents for 
        existing rental dwelling units, as the case may be, of various 
        sizes and types in the market area suitable for occupancy by 
        families assisted under this section.
            ``(3) Certain areas.--The Secretary shall establish 
        separate fair market rentals under this subsection for 
        Westchester County in the State of New York. The Secretary 
        shall also establish separate fair market rentals under this 
        paragraph for Monroe County in the Commonwealth of 
        Pennsylvania. In establishing fair market rentals for the 
        remaining portion of the market areas in which Monroe County is 
        located, the Secretary shall establish the fair market rentals 
        as if such portion included Monroe County.
    ``(f) Amount of Monthly Assistance Payment.--
            ``(1) In general.--The amount of the monthly assistance 
        payment under this section with respect to any dwelling unit 
        shall be the difference between the maximum monthly rent that 
        the contract provides that the owner is to receive for the unit 
        and the rent the family is required to pay under section 3(a).
            ``(2) Increases in assistance payments.--The Secretary 
        shall take any action necessary, including making contracts for 
        assistance payments in amounts exceeding the amounts required 
        upon the initial renting of dwelling units, reserving annual 
        contributions authority for the purpose of amending assistance 
        contracts, or allocating a portion of new authorizations for 
        the purpose of amending assistance contracts, to ensure that 
        assistance payments are increased on a timely basis to cover 
        increases in maximum monthly rents or decreases in family 
        incomes.
            ``(3) Reviews of family incomes.--
                    ``(A) In general.--Reviews of family incomes for 
                purposes of this section shall be made annually and 
                shall be subject to the provisions of section 904(e) of 
                the Stewart B. McKinney Homeless Assistance Amendments 
                Act of 1988. Any other reviews of family incomes under 
                this paragraph may be used only for the purpose of 
                ensuring that a family does not pay as rent for a 
                dwelling unit assisted under this section more than the 
                amount required under section 3(a).
                    ``(B) Procedures.--The Secretary shall establish 
                procedures that are appropriate and necessary to ensure 
                that income data provided to public housing agencies 
                and owners by families applying for or receiving 
                assistance under this section is complete and accurate. 
                In establishing such procedures, the Secretary shall 
                annually select a random sample of families to 
                authorize the Secretary to obtain information on the 
                families for the purpose of income verification, or to 
                allow the families to provide such information 
                themselves. Such information may include data 
                concerning unemployment compensation and Federal income 
                taxation and data relating to benefits made available 
                under the Social Security Act, the Food Stamp Act of 
                1977, or title 38, United States Code.
                    ``(C) Confidentiality.--Any income information 
                received pursuant to this paragraph shall remain 
                confidential and shall be used only for the purpose of 
                verifying incomes in order to determine eligibility of 
                families for benefits (and the amount of such benefits, 
                if any) under this section.
    ``(g) Eligibility of Units for Assistance.--Each assistance 
contract shall provide that assistance payments may be made only with 
respect to the following dwelling units:
            ``(1) Occupied units.--A dwelling unit under lease for 
        occupancy by a family determined to be a low-income family at 
        the time it initially occupies the dwelling unit or by a family 
        that qualifies to receive assistance under this section 
        pursuant to section 223 or 226 of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990.
            ``(2) Unoccupied units.--An unoccupied dwelling unit, but 
        only if--
                    ``(A)(i) a family vacates the dwelling unit before 
                the expiration date of the lease for occupancy, or (ii) 
                a good faith effort is being made to fill the 
                unoccupied unit; and
                    ``(B) the costs of such vacancy are not charged to 
                or paid by the family vacating the dwelling unit.
        Payments for units referred to in this paragraph may be made 
        only for a period not exceeding 60 days, except that such 
        payments may be made, in the case of a newly constructed or 
        substantially rehabilitated project, after the expiration of 
        such 60-day period in an amount equal to the debt service 
        attributable to such an unoccupied dwelling unit for a period 
        not to exceed one year, if a good faith effort is being made to 
        fill the unit and the unit provides decent, safe, and sanitary 
        housing. No such payment may be made after the expiration of 
        such 60-day period if the Secretary determines that the 
        dwelling unit is in a project which provides the owner with 
        revenues exceeding the costs incurred by such owner with 
        respect to such project.
    ``(h) Other Provisions of Assistance Contracts.--Contracts to make 
assistance payments entered into by any public housing agency (or by 
the Secretary) with an owner of existing housing units shall meet the 
following requirements:
            ``(1) Contract term.--Each assistance contract shall have a 
        term of not less than one month nor more than 180 months. The 
        Secretary shall permit public housing agencies to enter into 
        assistance contracts having terms of less than 12 months to the 
        extent necessary to avoid disruption in assistance to eligible 
        families if the annual contributions contract for the agency 
        under subsection (b) will expire within 1 year.
            ``(2) Preferences.--Each assistance contract shall provide 
        that, in making assistance available pursuant to the contract--
                    ``(A) for not less than 70 percent of the families 
                who initially receive project-based assistance, and
                    ``(B) for not less than 90 percent of the families 
                who initially receive tenant-based assistance in any 1-
                year period,
        preference shall be given to families that (i) occupy 
        substandard housing (including families that are homeless or 
        living in a shelter for homeless families), (ii) are paying 
        more than 50 percent of family income for rent, (iii) are 
        involuntarily displaced (including displacement because of 
        disposition of a multifamily housing project under section 203 
        of the Housing and Community Development Amendments of 1978) at 
        the time they are seeking assistance under this section, or 
        (iv) are residing in public housing.
            ``(3) Secondary preferences.--Each assistance contract 
        shall provide that, for any assistance remaining in any 1-year 
        period after assistance is made available pursuant to paragraph 
        (2), preference for such assistance shall be given to families 
        who qualify under a system of local preferences established by 
        the public housing agency in writing and after public hearing 
        to respond to local housing needs and priorities, which may 
        include--
                    ``(A) assisting very low-income families who either 
                reside in transitional housing assisted under title IV 
                of the Stewart B. McKinney Homeless Assistance Act or 
                participate in a program designed to provide public 
                assistance recipients with greater access to employment 
                and educational opportunities;
                    ``(B) assisting families in accordance with 
                subsection (q)(1)(B);
                    ``(C) assisting families identified by local public 
                agencies involved in providing for the welfare of 
                children as having a lack of adequate housing that is a 
                primary factor in the imminent placement of a child in 
                foster care, or in preventing the discharge of a child 
                from foster care and reunification with his or her 
                family;
                    ``(D) assisting youth, upon discharge from foster 
                care, in cases in which return to the family or 
                extended family or adoption is not available;
                    ``(E) assisting veterans who are eligible and have 
                applied for assistance, will use the assistance for a 
                dwelling unit designed for the handicapped, and, upon 
                discharge or eligibility for discharge from a hospital 
                or nursing home, have physical disability which, 
                because of the configuration of their homes, prevents 
                them from access to or use of their homes; and
                    ``(F) achieving other objectives of national 
                housing policy as established by law.
            ``(4) Tenant selection.--Each assistance contract shall 
        provide that the selection of tenants for such dwelling units 
        shall be the function of the owner, subject to any provisions 
        of the annual contributions contract between the Secretary and 
        the agency. The owner shall use tenant selection criteria, 
        which shall provide as follows:
                    ``(A) Prohibition of persons engaged in drug 
                activity.--The criteria shall prohibit any individual 
                or family evicted from housing assisted under this Act 
                by reason of drug-related criminal activity from having 
                a preference under any provision of this paragraph for 
                3 years unless the evicted tenant successfully 
                completes a rehabilitation program approved by the 
                agency or owner. The agency or the owner may waive the 
                application of the preceding sentence under standards 
                established by the Secretary, which shall provide for 
                such waiver for any member of a family of an individual 
                prohibited from tenancy under this subparagraph who the 
                agency or owner determines clearly did not participate 
                in and had no knowledge of such criminal activity or 
                when circumstances leading to eviction no longer exist.
                    ``(B) Other requirements for project-based 
                assistance.--With respect only to project-based 
                assistance, the criteria shall--
                            ``(i) be consistent with the purpose of 
                        improving housing opportunities for very low-
                        income families;
                            ``(ii) be reasonably related to program 
                        eligibility and an applicant's ability to 
                        perform the obligations of the assisted lease;
                            ``(iii) be established in writing; and
                            ``(iv) provide for the owner to promptly 
                        provide to any rejected applicant (I) written 
                        notice of the grounds for the rejection, and 
                        (II) an opportunity to meet with the decision 
                        maker to evaluate the validity of the reasons 
                        for rejection and rectify any erroneous 
                        decisions.
            ``(5) Lease provisions.--Each assistance contract shall 
        provide that the lease between the tenant of any unit and the 
        owner shall be for at least one year or the term of such 
        assistance contract, whichever is shorter, and that the lease 
        shall contain other terms and conditions specified by the 
        Secretary, including provisions meeting the requirements of 
        paragraphs (6), (7), and (8).
            ``(6) General grounds for termination of tenancy.--Each 
        assistance contract shall provide that the owner shall not 
        terminate the tenancy of the tenant of any unit except for 
        serious or repeated violation of the terms and conditions of 
        the lease, for violation of applicable Federal, State, or local 
        law, or for other good cause.
            ``(7) Termination for criminal activity.--Each assistance 
        contract shall provide that any criminal activity that 
        threatens the health, safety, or right to peaceful enjoyment of 
        the premises by other tenants, any criminal activity that 
        threatens the health, safety, or right to peaceful enjoyment of 
        their residences by persons residing in the immediate vicinity 
        of the premises, or any drug-related criminal activity on or 
        near such premises, engaged in by a tenant of any unit, any 
        member of the tenant's household, or any guest or other person 
        under the tenant's control, shall be cause for termination of 
        tenancy.
            ``(8) Notice of termination of tenancy.--Each assistance 
        contract shall provide that before terminating the tenancy of 
        any tenant, the owner shall provide written notice to the 
        tenant specifying the legal and factual grounds for such 
        action. Such notice shall be provided to the tenant not less 
        than 30 days before termination, except that in cases of 
        termination for nonpayment of rent such notice shall be 
        provided not less than 14 days before termination.
            ``(9) Maintenance and replacement.--Each assistance 
        contract shall provide that maintenance and replacement 
        (including redecoration) shall be performed in accordance with 
        the standard practice for the building concerned as established 
        by the owner and agreed to by the agency (or the Secretary). 
        With the approval of the Secretary, the public housing agency 
        administering a contract under this section with respect to 
        existing housing units may exercise all management and 
        maintenance responsibilities with respect to the units pursuant 
        to a contract between such agency and the owner of such units. 
        Each assistance contract shall also provide that, if the agency 
        (or the Secretary) determines that a unit assisted under this 
        section fails to comply in any material respect with standards 
        for housing quality for units so assisted, the agency (or the 
        Secretary) may withhold some or all of the assistance amounts 
        under this section with respect to such unit and promptly--
                    ``(A) use such amounts to make necessary repairs or 
                contract to have such repairs made;
                    ``(B) release any withheld amounts to the owner 
                after repairs are made by the owner, in an amount not 
                exceeding the cost of the repairs;
                    ``(C) release any withheld amounts to the 
                applicable State or local housing agency after repairs 
                are made by such agency, in an amount not exceeding the 
                cost of the repairs; or
                    ``(D) upon the request of the tenant, release any 
                withheld amounts to--
                            ``(i) the tenant to reimburse the tenant 
                        for the reasonable cost of any necessary 
                        repairs performed or paid for by the tenant; or
                            ``(ii) such person secured by the tenant 
                        and approved by the agency (or the Secretary) 
                        to make such necessary repairs.
        If an agency (or the Secretary) withholds any assistance 
        amounts pursuant to the preceding sentence, the agency (or the 
        Secretary) may not terminate the assistance contract unless and 
        until the tenant has relocated to decent, safe, and sanitary 
        housing.
            ``(10) Standards and obligations of residency in housing 
        receiving project-based assistance.--Each assistance contract 
        for project-based assistance under subsection (i) shall provide 
        that the owner shall ensure and maintain compliance with 
        subtitle C of title VI of the Housing and Community Development 
        Act of 1992 and any regulations issued under such subtitle.
            ``(11) Other.--Each assistance contract shall provide that 
        the agency and the owner shall carry out such other appropriate 
        terms and conditions as may be mutually agreed to by the agency 
        and owner.
    ``(i) Project-Based Assistance.--
            ``(1) Authority.--Pursuant to an annual contributions 
        contract entered into under subsection (b), a public housing 
        agency may enter into a assistance contract providing for 
        assistance payments under this section that are attached to a 
        structure.
            ``(2) Requirements.--Any public housing agency may approve 
        project-based assistance under this subsection with respect to 
        any or all of the assistance provided by the public housing 
        agency if--
                    ``(A) the owner agrees to rehabilitate the 
                structure other than with assistance under this Act and 
                the owner otherwise complies with the requirements of 
                this section; and
                    ``(B) in the case of any newly constructed 
                structure, the owner or prospective owner agrees to 
                construct the structure other than with assistance 
                under this Act and otherwise complies with the 
                requirements of this section.
            ``(3) Long-term affordability.--
                    ``(A) In general.--In the case of an assistance 
                contract for project-based assistance under this 
                subsection, a public housing agency shall enter into a 
                contract with an owner, contingent upon the future 
                availability of appropriations for the purpose of 
                renewing expiring contracts for assistance payments as 
                provided in appropriations Acts, to extend the term of 
                the underlying assistance contract for such period or 
                periods as the Secretary determines to be appropriate 
                to achieve long-term affordability of the housing. The 
                contract shall obligate the owner to have the 
                extensions of the assistance contract accepted by the 
                owner and the owner's successors in interest.
                    ``(B) Term of assistance for low-income housing 
                preservation.--The contract for assistance may, at the 
                option of the public housing agency, have an initial 
                term not exceeding 15 years for any assistance that is 
                attached--
                            ``(i) to projects assisted under a State 
                        program that permits the owner of the projects 
                        to prepay a State assisted or subsidized 
                        mortgage on the structure; and
                            ``(ii) for the purpose of providing 
                        incentives to owners to preserve such projects 
                        for occupancy by low- and moderate-income 
                        families (for the period that assistance under 
                        this subparagraph is available) and assisting 
                        low-income tenants to afford any increases in 
                        rent that may be required to induce the owner 
                        to maintain occupancy in the project by low- 
                        and moderate-income tenants.
                Any assistance provided to low-income tenants in the 
                manner described in this subparagraph shall not be 
                considered for purposes of the limitation under 
                subsection (h)(2) regarding the percentage of families 
                that may receive assistance under this section who do 
                not qualify for preferences under such subsection.
            ``(4) Service coordinators.--In determining the amount of 
        assistance provided under an assistance contract for project-
        based assistance under this paragraph or a contract for 
        assistance for housing constructed or substantially 
        rehabilitated pursuant to assistance provided under section 
        8(b)(2) of this Act (as such section existed before October 1, 
        1983), the Secretary may, to the extent amounts are provided 
        under section 5(c), increase the amount annually provided with 
        respect to such project to provide for the costs of employing 
        or otherwise retaining the services of one or more service 
        coordinators under section 671 of the Housing and Community 
        Development Act of 1992 to coordinate the provision of any 
        services within the project for residents of the project who 
        are elderly or disabled families.
    ``(j) Termination of Assistance Contracts.--
            ``(1) Notice by owner.--Any owner terminating any 
        assistance contract shall provide written notice to the 
        Secretary and the tenants involved of the proposed termination 
        not less than one year before the termination of the contract 
        (but not less than 90 days in the case of tenant-based 
        assistance). The notice shall specify the date of the 
        termination and the reasons for the termination, with detail 
        sufficient to enable the Secretary to evaluate whether the 
        termination is lawful and whether additional actions can be 
        taken by the Secretary to avoid the termination. The notice 
        shall include a statement that the owner and the Secretary may 
        agree to a renewal of the contract, thus avoiding the 
        termination.
            ``(2) Review of notice by secretary.--The Secretary shall 
        review the notice, shall consider whether additional actions 
        can be taken by the Secretary to avoid the termination, and 
        shall ensure a proper adjustment of the contract rents for the 
        project in compliance with the requirements of subsection (d) 
        and paragraph (3) of this subsection. The Secretary shall issue 
        a written finding of the legality of the termination and the 
        reasons for the termination, including the actions considered 
        or taken to avoid the termination. Within 30 days after 
        issuance of the findings, the owner shall provide written 
        notice to each tenant of the decision, together with the 
        written findings of the Secretary regarding the termination. In 
        the case of project-based assistance, the Secretary and the 
        owner shall complete the actions under this paragraph not later 
        than the expiration of the 9-month period beginning upon the 
        date that the owner provides written notice of termination 
        under paragraph (1).
            ``(3) Adjustment of contract rent.--If an owner provides 
        notice of proposed termination under paragraph (1) and the 
        contract rent is less than the maximum monthly rent for units 
        assisted under this section, the Secretary shall adjust the 
        contract rent based on the maximum monthly rent for units 
        assisted under this section and the value of the low-income 
        housing.
            ``(4) Notice of rent increases.--Each assistance contract 
        for project-based assistance under this section shall require 
        the owner to notify tenants at least 90 days before the 
        expiration of the contract of any rent increase which may occur 
        as a result of the expiration of such contract.
            ``(5) Definition of termination.--For purposes of this 
        subsection, the term `termination' means the expiration of the 
        assistance contract or the refusal of the owner to renew an 
        assistance contract, which shall include the termination of 
        tenancy by an owner for business reasons.
    ``(k) Rental Assistance for Manufactured Housing.--
            ``(1) In general.--The Secretary may enter into contracts 
        to make assistance payments under this subsection to assist 
        low-income families by making rental assistance payments on 
        behalf of any such family that utilizes a manufactured home as 
        its principal place of residence. In carrying out this 
        subsection, the Secretary may--
                    ``(A) enter into annual contributions contracts 
                with public housing agencies pursuant to which such 
                agencies may enter into assistance contracts to make 
                such assistance payments to the owners of such real 
                property; or
                    ``(B) enter into such contracts directly with the 
                owners of such real property.
            ``(2) Use of assistance.--Rental assistance payments under 
        this subsection may be made with respect to the rental of the 
        real property on which is located a manufactured home that is 
        owned by a low-income family or with respect to the rental by 
        such a family of a manufactured home and the real property on 
        which it is located.
            ``(3) Assistance for rental of manufactured home site.--
                    ``(A) Maximum monthly rent.--A contract entered 
                into pursuant to this paragraph shall establish the 
                maximum monthly rent (including maintenance and 
                management charges) that the owner is entitled to 
                receive for the space on which a manufactured home is 
                located and with respect to which assistance payments 
                are to be made. The maximum monthly rent shall not 
                exceed by more than 10 percent the fair market rental 
                established by the Secretary periodically (but not less 
                than annually) with respect to the market area for the 
                rental of real property suitable for occupancy by 
                families assisted under this paragraph.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents real property that is assisted 
                under this paragraph, and on which is located a 
                manufactured home that is owned by such family shall be 
                the difference between the rent the family is required 
                to pay under section 3(a) and the sum of--
                            ``(i) the monthly payment made by such 
                        family to amortize the cost of purchasing the 
                        manufactured home;
                            ``(ii) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(iii) the maximum monthly rent permitted 
                        with respect to the real property which is 
                        rented by such family for the purpose of 
                        locating its manufactured home;
                except that in no case may such assistance exceed the 
                total amount of such maximum monthly rent.
            ``(4) Assistance for rental of manufactured home and 
        site.--
                    ``(A) Maximum monthly rent.--Contracts entered into 
                pursuant to this paragraph shall establish the maximum 
                monthly rent permitted with respect to the manufactured 
                home and the real property on which it is located and 
                with respect to which assistance payments are to be 
                made. The maximum monthly rent shall not exceed by more 
                than 10 percent the fair market rental established by 
                the Secretary periodically (but not less than annually) 
                with respect to the market area for the rental of a 
                manufactured home and the real property on which it is 
                located suitable for occupancy by families assisted 
                under this paragraph; except that the maximum monthly 
                rent may exceed the fair market rental by more than 10 
                but not more than 20 percent if the Secretary 
                determines that special circumstances warrant such 
                higher maximum rent.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents a manufactured home and the 
                real property on which it is located and that is 
                assisted under this paragraph shall be the difference 
                between the rent the family is required to pay under 
                section 3(a) and the sum of--
                            ``(i) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(ii) the maximum monthly rent permitted 
                        with respect to the manufactured home and real 
                        property on which it is located.
            ``(5) Adjustment of maximum monthly rents.--The provisions 
        of paragraphs (3) through (7) of subsection (d) shall apply to 
        the adjustments of maximum monthly rents under this subsection.
            ``(6) Contract term.--Each contract entered into under the 
        subsection shall be for a term of not less than one month and 
        not more than 180 months; except that in any case in which the 
        manufactured home park is substantially rehabilitated or newly 
        constructed, such term may not be less than 240 months, nor 
        more than the maximum term for a manufactured home loan 
        permitted under section 2(b) of the National Housing Act.
            ``(7) Applicability.--The Secretary may carry out this 
        subsection without regard to whether the manufactured home park 
        is existing, substantially rehabilitated, or newly constructed.
            ``(8) Limitation on substantially rehabilitated and newly 
        constructed manufactured home parks.--In the case of any 
        substantially rehabilitated or newly constructed manufactured 
        home park containing spaces with respect to which assistance is 
        made under this subsection, the principal amount of the 
        mortgage attributable to the rental spaces within the park may 
        not exceed an amount established by the Secretary which is 
        equal to or less than the limitation for manufactured home 
        parks described in section 207(c)(3) of the National Housing 
        Act, and the Secretary may increase such limitation in high 
        cost areas in the manner described in such section.
            ``(9) Other requirements.--The Secretary may prescribe 
        other terms and conditions necessary for the purpose of 
        carrying out this subsection and that are consistent with the 
        purposes of this subsection.
    ``(l) Single Room Occupancy Facilities.--
            ``(1) Authority.--In making assistance available under this 
        section and assistance under section 441 and part V of subtitle 
        F of title IV of the Stewart B. McKinney Homeless Assistance 
        Act, the Secretary may provide assistance with respect to 
        residential properties in which some or all of the dwelling 
        units do not contain bathroom or kitchen facilities, if--
                    ``(A) the property is located in an area in which 
                there is a significant demand for such units, as 
                determined by the Secretary;
                    ``(B) the unit of general local government in which 
                the property is located and the local public housing 
                agency approve of such units being utilized for such 
                purpose; and
                    ``(C) the unit of general local government in which 
                the property is located and the local public housing 
                agency certify to the Secretary that the property 
                complies with local health and safety standards.
            ``(2) Waiver of limitations on assistance for single 
        persons.--The Secretary may waive, in appropriate cases, the 
        limitation and preference in section 3(b)(3)(A) with respect to 
        the assistance made available under this subsection.
    ``(m) Housing for Elderly and Disabled Families.--
            ``(1) Shared housing.--To assist elderly families and 
        disabled families (as defined in section 3(b)) who elect to 
        live in a shared housing arrangement in which they benefit as a 
        result of sharing the facilities of a dwelling with others in a 
        manner that effectively and efficiently meets their housing 
        needs and thereby reduces their costs of housing, the Secretary 
        shall permit assistance provided under this section to be used 
        by such families in such arrangements. In carrying out this 
        subsection, the Secretary shall issue minimum habitability 
        standards for the purpose of ensuring decent, safe, and 
        sanitary housing for such families while taking into account 
        the special circumstances of shared housing.
            ``(2) Priority for nonelderly disabled families.--In 
        allocating assistance under this section, a public housing 
        agency that serves more than one unit of general local 
        government may, at the discretion of the agency, give priority 
        to disabled families that are not elderly families.
            ``(3) Authority to provide preferences for the elderly and 
        reserve units for the disabled.--Notwithstanding subsection 
        (h)(2) or (3), an owner of a covered section 8 housing project 
        (as such term is defined in section 659 of the Housing and 
        Community Development Act of 1992) may give preference for 
        occupancy of dwelling units in the project, and reserve units 
        for occupancy, in accordance with subtitle D of title VI of the 
        Housing and Community Development Act of 1992.
    ``(n) Administrative Fees.--
            ``(1) Basic fee for tenant-based rental program.--The 
        Secretary shall establish a fee for the costs incurred by a 
        public housing agency in administering the program for rental 
        assistance under this section, which shall be, together with 
        other fees authorized under this subsection, included in any 
        amounts provided to the public housing agency under the annual 
        contributions contract for the agency. The amount of the fee 
        for each month for which a dwelling unit is covered by an 
        assistance contract shall be 8.2 percent of the fair market 
        rental established under subsection (e) for a 2-bedroom 
        existing rental dwelling unit in the market area of the public 
        housing agency. The Secretary may increase the fee if necessary 
        to reflect the higher costs of administering small programs and 
        programs operating over large geographic areas.
            ``(2) Other fees.--The Secretary shall also establish 
        reasonable fees (as determined by the Secretary) for--
                    ``(A) the costs of preliminary expenses that a 
                public housing agency documents it has incurred in 
                connection with new allocations of assistance under the 
                program for rental assistance under this section, which 
                shall not exceed $275 per unit assisted;
                    ``(B) the costs incurred in assisting families who 
                experience difficulty (as determined by the Secretary) 
                in obtaining appropriate housing under the program;
                    ``(C) the costs incurred in administering the 
                provision of rental assistance under this section 
                through the self-sufficiency program under section 23; 
                and
                    ``(D) extraordinary costs approved by the 
                Secretary.
            ``(3) Authority to include costs of service coordinators in 
        fees.--
                    ``(A) In general.--Fees under this subsection may 
                be used for the costs of employing or otherwise 
                retaining the services of one or more service 
                coordinators under section 671 of the Housing and 
                Community Development Act of 1992 to coordinate the 
                provision of supportive services for elderly families 
                and disabled families on whose behalf tenant-based 
                assistance is provided under this section or section 
                811(b)(1). Such service coordinators shall have the 
                same responsibilities with respect to such families as 
                service coordinators of covered federally assisted 
                housing projects have under section 671 of such Act 
                with respect to residents of such projects.
                    ``(B) Requirement.--To the extent amounts are 
                provided in appropriation Acts under section 5(c) for 
                use under this paragraph, the Secretary shall increase 
                fees under this subsection to provide for the costs of 
                such service coordinators for public housing agencies.
            ``(4) Budget compliance.--The Secretary may establish or 
        increase a fee in accordance with this subsection only to such 
        extent or in such amounts as are provided in appropriation 
        Acts.
            ``(5) Fees for 1995 and 1996.--Notwithstanding any other 
        provision of this subsection, the fee for the costs incurred by 
        a public housing agency in administering the program for rental 
        assistance under this section during fiscal years 1995 and 1996 
        shall be equal to the fee determined for fiscal year 1994 under 
        section 11(a) of the HUD Demonstration Act of 1993.
    ``(o) Portability of Assistance.--
            ``(1) Authority.--Except as provided in paragraph (3), any 
        family on behalf of whom is provided tenant-based rental 
        assistance under this section and who moves to an eligible 
        dwelling unit located within the same State, or the same or a 
        contiguous metropolitan statistical area, as the metropolitan 
        statistical area within which is located the area of 
        jurisdiction of the public housing agency approving the 
        assistance for the family, may use such assistance to rent such 
        eligible dwelling unit.
            ``(2) Administration.--The public housing agency having 
        authority with respect to the dwelling unit to which a family 
        moves under this subsection shall have the responsibility of 
        carrying out the provisions of this section with respect to the 
        family. If no public housing agency has authority with respect 
        to the dwelling unit to which a family moves under this 
        subsection, the public housing agency approving the assistance 
        shall have such responsibility.
            ``(3) Local option to ensure minimum area residency.--
                    ``(A) Authority.--At the discretion of a public 
                housing agency and to the extent provided in 
                subparagraph (B), the agency may provide that a family 
                may use tenant-based rental assistance under this 
                section to rent an eligible dwelling unit that is not 
                located within the area of jurisdiction of the agency 
                approving the assistance only if, before such use, the 
                family has rented and occupied an eligible dwelling 
                unit within such jurisdiction for not less than 12 
                consecutive months using assistance provided by such 
                agency.
                    ``(B) Limitation.--If a public housing agency 
                elects to restrict the use of tenant-based rental 
                assistance pursuant to subparagraph (A) and provides 
                such assistance on behalf of more than 300 families, 
                the agency may not restrict the use of such assistance 
                with respect to assistance provided on behalf of 10 
                percent of the number of families receiving such 
                assistance that exceeds 300.
            ``(4) Provision of rental assistance for portability 
        purposes.--
                    ``(A) Amount.--To the extent budget authority for 
                use under this paragraph is made available in 
                appropriation Acts, the Secretary shall provide rental 
                assistance under this section in accordance with this 
                paragraph.
                    ``(B) Use.--Amounts provided for use under this 
                paragraph shall be used only to provide a public 
                housing agency with additional amounts (as determined 
                under subparagraph (D)) to provide assistance for 
                families on behalf of whom assistance is provided under 
                this section by another public housing agency and who 
                move into an eligible dwelling unit located within the 
                area of jurisdiction of the agency to receive 
                assistance under this paragraph.
                    ``(C) Requirement.--Amounts provided for use under 
                this paragraph may be made available to a public 
                housing agency only if the agency has provided 
                assistance pursuant to the first sentence of paragraph 
                (2) on behalf of families who have moved into eligible 
                dwelling units located within the area of jurisdiction 
                of the agency in an amount not less than the lesser of 
                (i) 5 percent of the total amount received by the 
                agency for assistance under this section for the fiscal 
                year, or (ii) the amount necessary to assist 25 percent 
                of average annual number of families previously 
                assisted by the agency who relinquish such assistance 
                in a year (based on the preceding 3 calendar years).
    ``(p) Prohibition of Discrimination.--
            ``(1) Based on residency in public housing.--In selecting 
        families for the provision of assistance under this section, a 
        public housing agency may not exclude or penalize a family 
        solely because the family resides in a public housing project.
            ``(2) Based on receipt of assistance.--An owner who has 
        entered into an assistance contract under this section on 
        behalf of any tenant in a multifamily housing project shall not 
        refuse to lease any available dwelling unit in any multifamily 
        housing project of such owner that rents for an amount not 
        greater than the fair market rental for a comparable unit (as 
        determined by the Secretary under subsection (e)) to a family 
        who has been approved by a public housing agency for rental 
        assistance under this section and is in possession of evidence 
        of such approval, a proximate cause of which is the status of 
        such prospective tenant as such an assisted family, and to 
        enter into an assistance contract respecting such unit.
            ``(3) Definition.--For purposes of this subsection, the 
        term `multifamily housing project' means a residential building 
        containing more than 4 dwelling units.
    ``(q) Special Uses of Rental Assistance.--
            ``(1) Assistance for residents of rehabilitated projects.--
        In the case of low-income families living in rental projects 
        rehabilitated under section 17 of this Act or section 533 of 
        the Housing Act of 1949 before rehabilitation--
                    ``(A) tenant-based rental assistance under this 
                section shall be provided for families who are required 
                to move out of their dwelling units because of the 
                physical rehabilitation activities or because of 
                overcrowding;
                    ``(B) at the discretion of each public housing 
                agency, tenant-based rental assistance under this 
                section may be provided for families who would have to 
                pay more than 30 percent of their adjusted income for 
                rent after rehabilitation whether they choose to remain 
                in, or to move from, the project; and
                    ``(C) the Secretary shall allocate tenant-based 
                rental assistance provided under this section to ensure 
                that sufficient resources are available to address the 
                physical or economic displacement, or potential 
                economic displacement, of existing tenants pursuant to 
                subparagraphs (A) and (B).
            ``(2) Loan management assistance.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section through a loan management 
                program to assist financially troubled multifamily 
                residential housing projects (i) subject to mortgages 
                that are insured under the National Housing Act or 
                mortgages that have been assigned to the Secretary, 
                (ii) that were held by the Secretary and have been 
                sold, and (iii) that were assisted under section 202 of 
                the Housing Act of 1959.
                    ``(B) Eligibility.--The eligibility of a 
                multifamily residential project for loan management 
                assistance under this paragraph shall be determined 
                without regard to whether the project is subsidized or 
                unsubsidized.
                    ``(C) Extension of contract.--The Secretary shall 
                extend any expiring contract entered into under this 
                section for loan management assistance or execute a new 
                contract for project-based loan management assistance, 
                if the owner agrees to continue providing housing for 
                low-income families during the term of the contract.
            ``(3) Assistance for family unification.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section to be used only in 
                connection with tenant-based assistance under this 
                section on behalf of any family (i) who is otherwise 
                eligible for such assistance, and (ii) who the public 
                child welfare agency for the jurisdiction has certified 
                is a family for whom the lack of adequate housing is a 
                primary factor in the imminent placement of the 
                family's child or children in out-of-home care or the 
                delayed discharge of a child or children to the family 
                from out-of-home care.
                    ``(B) Allocation.--Any amounts made available under 
                this paragraph shall be allocated by the Secretary 
                through a national competition among applicants based 
                on demonstrated need for assistance under this 
                paragraph. To be considered for assistance, an 
                applicant shall submit to the Secretary a written 
                proposal containing a report from the public child 
                welfare agency serving the jurisdiction of the 
                applicant that describes how a lack of adequate housing 
                in the jurisdiction is resulting in the initial or 
                prolonged separation of children from their families, 
                and how the applicant will coordinate with the public 
                child welfare agency to identify eligible families and 
                provide the families with assistance under this 
                paragraph.
                    ``(D) Definitions.--For purposes of this paragraph:
                            ``(i) Applicant.--The term `applicant' 
                        means a public housing agency.
                            ``(ii) Public child welfare agency.--The 
                        term `public child welfare agency' means the 
                        public agency responsible under applicable 
                        State law for determining that a child is at 
                        imminent risk of placement in out-of-home care 
                        or that a child in out-of-home care under the 
                        supervision of the public agency may be 
                        returned to his or her family.
    ``(r) Renewal of Expiring Contracts.--Not later than 30 days after 
the beginning of each fiscal year, the Secretary shall publish in the 
Federal Register a plan for reducing, to the extent feasible, year-to-
year fluctuations in the levels of budget authority that will be 
required over the succeeding 5-year period to renew expiring assistance 
contracts entered into under this section after the enactment of the 
Housing and Community Development Act of 1974. To the extent necessary 
to carry out such plan and to the extent approved in appropriations 
Acts, the Secretary is authorized to enter into annual contributions 
contracts with terms of less than 60 months.
    ``(s) General Provisions.--
            ``(1) Prohibition of high-rise projects for families with 
        children.--Notwithstanding any other provision of this section, 
        after the date of enactment of the Housing and Community 
        Development Act of 1977, the Secretary shall prohibit high-rise 
        elevator projects for families with children unless the 
        Secretary determines that there is no practical alternative.
            ``(2) Pledging assistance contracts as security.--An owner 
        may pledge, or offer as security for any loan or obligation, an 
        assistance contract entered into pursuant to this section, but 
        only if such security is in connection with a project 
        constructed or rehabilitated pursuant to authority under this 
        section and the terms of the financing or any refinancing have 
        been approved by the Secretary.
            ``(3) Assistance in finding units.--Each public housing 
        agency that provides rental housing assistance under this 
        section on behalf of low-income families shall make available, 
        to such families, counseling and assistance regarding housing 
        opportunities in the area of jurisdiction of the agency, 
        including assistance in obtaining new rental residences.
    ``(t) Homeownership Option.--
            ``(1) Use of assistance for homeownership.--A family 
        receiving tenant-based assistance under this section may 
        receive assistance for occupancy of a dwelling owned by one or 
        more members of the family if the family--
                    ``(A) is a first-time homeowner;
                    ``(B)(i) participates in the family self-
                sufficiency program under section 23 of the public 
                housing agency providing the assistance; or
                    ``(ii) demonstrates that the family has income from 
                employment or other sources (other than public 
                assistance), as determined in accordance with 
                requirements of the Secretary, that is not less than 
                twice the payment standard established by the public 
                housing agency (or such other amount as may be 
                established by the Secretary);
                    ``(C) except as provided by the Secretary, 
                demonstrates at the time the family initially receives 
                tenant-based assistance under this subsection that one 
                or more adult members of the family have achieved 
                employment for the period as the Secretary shall 
                require;
                    ``(D) participates in a homeownership and housing 
                counseling program provided by the agency; and
                    ``(E) meets any other initial or continuing 
                requirements established by the public housing agency 
                in accordance with requirements established by the 
                Secretary.
            ``(2) Monthly assistance payment.--
                    ``(A) In general.--Notwithstanding any other 
                provisions of this section governing determination of 
                the amount of assistance payments under this section on 
                behalf of a family, the monthly assistance payment for 
                any family assisted under this subsection shall be the 
                amount by which the fair market rental for the area 
                established under subsection (e)(1) exceeds 30 percent 
                of the family's monthly adjusted income; except that 
                the monthly assistance payment shall not exceed the 
                amount by which the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, exceeds 10 percent of the family's 
                monthly income.
                    ``(B) Exclusion of equity from income.--For 
                purposes of determining the monthly assistance payment 
                for a family, the Secretary shall not include in family 
                income an amount imputed from the equity of the family 
                in a dwelling occupied by the family with assistance 
                under this subsection.
            ``(3) Recapture of certain amounts.--Upon sale of the 
        dwelling by the family, the Secretary shall recapture from any 
        net proceeds the amount of additional assistance (as determined 
        in accordance with requirements established by the Secretary) 
        paid to or on behalf of the eligible family as a result of 
        paragraph (2)(B).
            ``(4) Downpayment requirement.--Each public housing agency 
        providing assistance under this subsection shall ensure that 
        each family assisted shall provide from its own resources not 
        less than 80 percent of any downpayment in connection with a 
        loan made for the purchase of a dwelling. Such resources may 
        include amounts from any escrow account for the family 
        established under section 23(d). Not more than 20 percent of 
        the downpayment may be provided from other sources, such as 
        from nonprofit entities and programs of States and units of 
        general local government.
            ``(5) Ineligibility under other programs.--A family may not 
        receive assistance under this subsection during any period when 
        assistance is being provided for the family under other Federal 
        homeownership assistance programs, as determined by the 
        Secretary, which shall include assistance under the HOME 
        Investment Partnerships Act, the Homeownership and Opportunity 
        Through HOPE Act, title II of the Housing and Community 
        Development Act of 1987, and section 502 of the Housing Act of 
        1949.
            ``(6) Inapplicability of certain provisions.--Assistance 
        under this subsection shall not be subject to the requirements 
        of the following provisions:
                    ``(A) Subsection (h)(3) of this section.
                    ``(B) Any other provisions of this section 
                governing maximum amounts payable to owners and amounts 
                payable by assisted families.
                    ``(C) Any other provisions of this section 
                concerning contracts between public housing agencies 
                and owners.
                    ``(E) Any other provisions of this Act that are 
                inconsistent with the provisions of this subsection.
            ``(7) Reversion to rental status.--
                    ``(A) FHA-insured mortgages.--If a family receiving 
                assistance under this subsection for occupancy of a 
                dwelling defaults under a mortgage for the dwelling 
                insured by the Secretary under the National Housing 
                Act, the family may not continue to receive rental 
                assistance under this section unless the family (i) 
                transfers to the Secretary marketable title to the 
                dwelling, (ii) moves from the dwelling within the 
                period established or approved by the Secretary, and 
                (iii) agrees that any amounts the family is required to 
                pay to reimburse the escrow account under section 
                23(d)(3) may be deducted by the public housing agency 
                from the assistance payment otherwise payable on behalf 
                of the family.
                    ``(B) Other mortgages.--If a family receiving 
                assistance under this subsection defaults under a 
                mortgage not insured under the National Housing Act, 
                the family may not continue to receive rental 
                assistance under this section unless it complies with 
                requirements established by the Secretary.
                    ``(C) All mortgages.--A family receiving assistance 
                under this subsection that defaults under a mortgage 
                may not receive assistance under this subsection for 
                occupancy of another dwelling owned by one or more 
                members of the family.
            ``(8) Definition of first-time homeowner.--For purposes of 
        this subsection, the term `first-time homeowner' means--
                    ``(A) a family, no member of which has had a 
                present ownership interest in a principal residence 
                during the 3 years preceding the date on which the 
                family initially receives assistance for homeownership 
                under this subsection; and
                    ``(B) any other family, as the Secretary may 
                prescribe.
    ``(u) Definitions.--For purposes of this section:
            ``(1) Annual contributions contract.--The term `annual 
        contributions contract' means a contract under subsection (b) 
        between the Secretary and a public housing agency to provide 
        amounts for rental assistance payments under this section to 
        the public housing agency.
            ``(2) Assistance contract.--The term `assistance contract' 
        means a contract under subsection (c) between a public housing 
        agency (or the Secretary) and an owner to make rental 
        assistance payments under this section to the owner.
            ``(3) Debt service.--The term `debt service' means the 
        required payments for principal and interest made with respect 
        to a mortgage secured by housing assisted under this Act.
            ``(4) Drug-related criminal activity.--The term `drug-
        related criminal activity' means the illegal manufacture, sale, 
        distribution, use, or possession with intent to manufacture, 
        sell, distribute, or use, of a controlled substance (as such 
        term is defined in section 102 of the Controlled Substances 
        Act).
            ``(5) Owner.--The term `owner' means any private person or 
        entity, including a cooperative, an agency of the Federal 
        Government, or a public housing agency, having the legal right 
        to lease or sublease dwelling units, and such term shall 
        include any principals, general partners, primary shareholders, 
        and other similar participants in any entity owning a 
        multifamily housing project (as such term is defined in 
        subsection (p)(3)), as well as the entity itself.
            ``(6) Participating jurisdiction.--The term `participating 
        jurisdiction' means a State or unit of general local government 
        designated by the Secretary to be a participating jurisdiction 
        under title II of the Cranston-Gonzalez National Affordable 
        Housing Act.
            ``(7) Project-based assistance.--The term `project-based 
        assistance' means rental assistance under this section that is 
        attached to a structure pursuant to subsection (i).
            ``(8) Rent.--The terms `rent' and `rental' include, with 
        respect to members of a cooperative, the charges under the 
        occupancy agreements between such members and the cooperative.
            ``(9) Rental assistance.--The term `rental assistance' 
        means assistance provided under this section on behalf of low-
        income families for the rental of a dwelling unit.
            ``(10) Tenant-based assistance.--The term `tenant-based 
        assistance' means rental assistance under this section that is 
        not project-based assistance.''.
    (b) Transition.--
            (1) Applicability.--The amendment made by subsection (a) 
        shall apply only to assistance under section 8 of the United 
        States Housing Act of 1937 provided pursuant to an assistance 
        contract entered into or renewed during fiscal year 1995 or 
        thereafter. Any such assistance provided pursuant to an 
        assistance contract entered into before the commencement of 
        fiscal year 1995 shall be subject to the provisions of such 
        section 8 as in effect immediately before the enactment of this 
        Act or otherwise applicable to such assistance.
            (2) Continuation of assistance.--The Secretary of Housing 
        and Urban Development shall take any action necessary to ensure 
        that the provision of assistance under section 8 of the United 
        States Housing Act of 1937 to families receiving assistance 
        under such section on the date of the enactment of this Act is 
        not interrupted because of the amendment made by subsection 
        (a).
    (c) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 is amended--
                    (A) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by 
                striking ``(other than a family assisted under section 
                8(o) or (y) or paying rent under section 8(c)(3)(B))'' 
                and inserting ``(other than a family assisted under 
                section 8(t))'';
                    (B) in section 5 (42 U.S.C. 1737c)--
                            (i) in subsection (c)(7)(C), by striking 
                        ``section 8(b)(1)'' each place it appears and 
                        inserting ``section 8'';
                            (ii) in subsection (j)(1)(B)(i), by 
                        striking ``section 8(o)(6)'' and inserting 
                        ``section 8''; and
                            (iii) in subsection (j)(1)(D), by striking 
                        ``subsection (b) or (o) of'';
                    (C) in section 6(p)(1)(B) (42 U.S.C. 
                1437d(p)(1)(B)), by striking ``holding certificates and 
                vouchers'' and inserting ``eligible and approved for 
                assistance'';
                    (D) in section 18(b)(3) (42 U.S.C. 1437p(b)(3))--
                            (i) in subparagraph (A)(iv), by striking 
                        ``section 8(b)(1)'' and inserting ``section 
                        8'';
                            (ii) in subparagraph (A)(v), by striking 
                        ``(excluding vouchers under section 8(o))'' 
                        each place it appears;
                            (iii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``(notwithstanding the 
                                limitation under section 8(d)(2)(A) on 
                                the amount of project-based assistance 
                                provided by an agency)''; and
                                    (II) in clause (ii), by striking 
                                ``(excluding vouchers under section 
                                8(o))''; and
                            (iv) in subparagraph (C), by striking 
                        ``certificates and vouchers available'' and 
                        inserting ``families receiving tenant-based 
                        assistance'';
                    (E) in section 21(b)(3)--
                            (i) by striking ``a certificate under 
                        section 8(b)(1) or a housing voucher under 
                        section 8(o)'' and inserting ``tenant-based 
                        assistance under section 8''; and
                            (ii) by striking ``such certificate'' and 
                        inserting ``such assistance'';
                    (F) in section 23--
                            (i) in subsection (a), by striking 
                        ``assistance under the certificate and voucher 
                        programs'' and inserting ``tenant-based 
                        assistance'';
                            (ii) in subsection (b)--
                                    (I) in paragraph (1), by striking 
                                ``assistance under subsection (b) or 
                                (o) of'' and inserting ``tenant-based 
                                assistance under'';
                                    (II) in paragraph (3)(A), by 
                                striking ``Certificate and voucher 
                                assistance under section 8(b) and (o)'' 
                                and inserting ``Tenant-based assistance 
                                under section 8''; and
                                    (III) in paragraph (4), by striking 
                                ``Assistance under the certificate or 
                                voucher programs'' and inserting 
                                ``Tenant-based assistance'';
                            (iii) in subsection (c)(1), by striking 
                        ``assistance under the certificate and voucher 
                        programs of'' and inserting ``tenant-based 
                        assistance from'';
                            (iv) in subsection (d)(3) (as added by 
                        section 185(b) of the Housing and Community 
                        Development Act of 1992 (Public Law 102-550; 
                        106 Stat. 3747)), by striking ``section 8(y)'' 
                        and inserting ``section 8(t)''; and
                            (v) in subsection (h)(1)--
                                    (I) by striking ``section 8(q) for 
                                the costs incurred in administering the 
                                provision of certificate and voucher'' 
                                and inserting ``section 8(n) for the 
                                costs incurred in administering the 
                                provision of tenant-based''; and
                                    (II) by striking ``section 
                                8(q)(2)(A)(i)'' and inserting ``section 
                                8(n)(2)(A)''; and
                    (G) in section 304(g)(3) (42 U.S.C. 1437aaa-
                3(g)(3)), by striking ``section 8(b)(2) and section 
                8(o)(9)'' and inserting ``section 8''.
            (2) Elderly independence.--Section 803 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is 
        amended--
                    (A) in subsection (a), by striking ``housing 
                certificates and vouchers'' and inserting ``assistance 
                under section 8 of the United States Housing Act of 
                1937''; and
                    (B) in subsection (b)--
                            (i) in the 1st sentence, by striking ``not 
                        more than 1500 incremental vouchers and 
                        certificates under sections 8(b) and 8(o) of 
                        the United States Housing Act of 1937'' and 
                        inserting ``incremental assistance under 
                        section 8 of the United States Housing Act of 
                        1937 on behalf of not more than 1,500 frail 
                        elderly persons'';
                            (ii) in the 3rd sentence, by striking ``the 
                        housing certificate or voucher program of the 
                        agency'' and inserting ``the agency's program 
                        for assistance under such section 8''; and
                            (iii) in the last sentence, by striking 
                        ``sections 8(b) and 8(o)'' and inserting 
                        ``section 8''.
            (3) McKinney act.--Section 441(b) of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11401(b)) is 
        amended--
                    (A) by striking ``section 8(n)'' and inserting 
                ``section 8(l)''; and
                    (B) by adding at the end the following new 
                sentence: ``Moderate rehabilitation under this section 
                shall be carried out in the manner provided under the 
                provisions of section 8(e) of the United States Housing 
                Act of 1937, as such section was in effect immediately 
                before the enactment of the Housing and Community 
                Development Act of 1994.''.
            (4) National housing act.--Section 203(v) of the National 
        Housing Act (12 U.S.C. 1709(v)), as added by section 
        185(c)(1)(B) of the Housing and Community Development Act of 
        1992, is amended by striking ``section 8(y)'' and inserting 
        ``section 8(t)''.

                   Subtitle D--Homeownership Programs

SEC. 151. HOPE HOMEOWNERSHIP PROGRAMS.

    (a) Authorization of Appropriations and Technical Assistance.--
            (1) In general.--Section 402 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12870) is amended by 
        striking subsections (a) and (b) and inserting the following 
        new subsection:
    ``(a) Homeownership Programs.--There are authorized to be 
appropriated for grants under this title $100,000,000 for fiscal year 
1995 and $100,000,000 for fiscal year 1996, which shall be available 
for activities authorized under subtitles B and C. Any amounts 
appropriated pursuant to this subsection shall remain available until 
expended.''.
    (b) Matching Requirements.--
            (1) Hope ii.--Section 423(c) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12873(c)) is amended 
        by striking ``33 percent'' and inserting ``25 percent''.
            (2) Hope iii.--Section 443(c)(1) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12893(c)(1)) is 
        amended by striking ``33 percent'' and inserting ``25 
        percent''.

SEC. 152. NATIONAL HOMEOWNERSHIP TRUST.

    (a) Extension of Trust.--Section 310 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12859) is amended by 
striking ``The'' and all that follows and inserting the following: 
``The Trust shall terminate at the end of September 30, 1996.''.
    (b) Authorization of Appropriations.--Section 308 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12857) is amended 
to read as follows:

``SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for assistance payments 
under this subtitle $558,809,562 for fiscal year 1995 and $575,573,849 
for fiscal year 1996, of which such sums as may be necessary shall be 
available in each such fiscal year for use under section 303(e). Any 
amount appropriated under this section shall be deposited in the Fund 
and shall remain available until expended, subject to the provisions of 
section 309.''.

SEC. 153. SECTION 235 MORTGAGE REFINANCING.

    Section 235(r) of the National Housing Act (12 U.S.C. 1715z(r)) is 
amended--
            (1) in paragraph (2)(C), by inserting after ``refinanced'' 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B) to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate as permitted by subparagraph (E) or paid by 
        the Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting after ``otherwise)'' the following: ``and the 
                mortgagee (with respect to the amount described in 
                subparagraph (A))''; and
                    (B) in subparagraph (A), by inserting after 
                ``mortgagor'' the following: ``and the mortgagee''; and
            (3) by amending paragraph (5) to read as follows:
    ``(5) The Secretary shall use amounts of budget authority 
recaptured from assistance payments contracts relating to mortgages 
that are being refinanced for assistance payments contracts with 
respect to mortgages insured under this subsection. The Secretary may 
also make such recaptured amounts available for incentives under 
paragraph (4)(A) and the costs incurred in connection with the 
refinancing under paragraph (4)(B). For purposes of subsection 
(c)(3)(A), the amount of recaptured budget authority that the Secretary 
commits for assistance payments contracts relating to mortgages insured 
under this subsection and for amounts paid under paragraph (4) shall 
not be construed as unused.''.

                       Subtitle E--Other Programs

SEC. 161. COMMUNITY PARTNERSHIPS AGAINST CRIME.

    (a) Short Title, Purposes, and Authority To Make Grants.--Sections 
5121, 5122, and 5123 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11901 note, 11901, 11902) are amended to read as follows:

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1994'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) substantially expand and enhance the Federal 
        Government's commitment to eliminating crime in and around 
        public housing and other federally assisted housing projects;
            ``(2) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime and 
        not simply crime that is drug-related;
            ``(3) target opportunities for long-term commitments of 
        funding primarily to public housing agencies with serious crime 
        problems;
            ``(4) encourage the involvement of a broad range of 
        community-based groups, and residents of neighboring housing 
        that is owned or assisted by the Secretary, in the development 
        and implementation of anti-crime plans;
            ``(5) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(6) provide training, information services, and other 
        technical assistance to program participants; and
            ``(7) establish a standardized assessment system to 
        evaluate need among public housing agencies, and to measure 
        progress in reaching crime reduction goals.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``(a) In General.--The Secretary of Housing and Urban Development, 
in accordance with the provisions of this chapter, may make grants, for 
use in eliminating crime in and around public and other federally 
assisted low-income housing projects to public housing agencies 
(including Indian housing authorities) and private, for-profit and 
nonprofit owners of federally assisted low-income housing, pursuant to 
applications submitted and approved under section 5125. In designing 
the program under this chapter, the Secretary shall consult with the 
Attorney General.
    ``(b) Grant Period.--Except as provided in subsection (c), a grant 
under this chapter shall be made to cover a period of up to 2 years, as 
determined by the Secretary, taking into consideration the period for 
which the grant is requested as stated in the application under section 
5125.
    ``(c) Grant Period for PHA's Having Severe Crime Problems.--In 
carrying out this chapter, the Secretary may make grants to public 
housing agencies having especially severe crime problems that cover a 
period of 1 year and that shall be renewed annually for each of the 
succeeding 4 years, subject to--
            ``(1) the availability of amounts provided in appropriation 
        Acts, and
            ``(2) a finding by the Secretary, after an annual or more 
        frequent performance review, that the public housing agency is 
        performing under the terms of the grant and applicable laws in 
        a satisfactory manner, a need for such assistance continues to 
        exist, and the agency meets such other requirements as the 
        Secretary may prescribe.
The Secretary shall, by regulations issued after notice and opportunity 
for public comment, set forth criteria for determining public housing 
agencies that have especially severe crime problems.''.
    (b) Eligible Activities.--Section 5124 of the Anti-Drug Abuse Act 
of 1988 (42 U.S.C. 11903) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and around'' after ``used in'';
                    (B) in paragraph (3), by inserting before the 
                semicolon the following: ``, such as fencing, lighting, 
                locking, and surveillance systems'';
                    (C) by striking paragraph (4)(A) and inserting the 
                following new subparagraph:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (E) by striking paragraph (7) and inserting the 
                following new paragraphs:
            ``(7) providing funding to nonprofit public housing 
        resident management corporations and resident councils to 
        develop security and crime prevention programs involving site 
        residents;
            ``(8) the employment or utilization of 1 or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community- and 
        problem-oriented policing involving interaction with members of 
        the community on proactive crime control and prevention;
            ``(9) programs and activities for or involving youth, 
        including activities involving training, education, after 
        school programs, cultural programs, recreation and sports, 
        career planning, and entrepreneurship and employment; and
            ``(10) service programs for residents that address the 
        contributing factors of crime, including programs for job 
        training, education, and other appropriate social services.''.
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``drug-related crime in'' 
                        and inserting ``crime in and around''; and
                            (ii) by striking ``paragraphs (1) through 
                        (7)'' and inserting ``paragraphs (1) through 
                        (10)'';
                    (B) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) the housing is located in--
                    ``(A) an area that has a severe crime problem, as 
                determined by the Secretary; or
                    ``(B) a high intensity drug trafficking area 
                designated pursuant to section 1005 of this Act; and''; 
                and
                    (C) in paragraph (2), by striking ``drug-related'' 
                and inserting ``criminal''.
    (c) Applications.--Section 5125 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11904) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``, a public 
                housing resident management corporation,'';
                    (B) in the second sentence (i) by striking ``drug-
                related crime on the premises of'' and inserting the 
                following: ``crime in and around''; and
                    (C) by inserting before the period at the end the 
                following: ``and the period during which any grant 
                amounts received pursuant to the application are to be 
                used'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting in lieu thereof the 
                following: ``crime problem in and around'';
                    (B) in paragraph (2), by inserting ``and around'' 
                after ``crime problem in''; and
                    (C) in paragraph (4), by inserting after ``local 
                government'' the following: ``, local community-based 
                non-profit organizations, local resident organizations 
                that represent the residents of neighboring projects 
                that are owned or assisted by the Secretary,'';
            (3) in subsection (c)(2), by striking ``drug-related'' each 
        place it appears;
            (4) in subsection (d)--
                    (A) by striking ``drug-related''; and
                    (B) by redesignating such subsection as subsection 
                (e); and
            (5) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Preferences.--In selecting applicants to receive grants under 
this chapter (not including grants pursuant to section 5123(c)), the 
Secretary may give preference to an applicant for a grant that is to be 
used to continue or expand activities assisted under a grant previously 
made under this chapter, but only if the Secretary finds that the 
program carried out by the applicant under the previous grant is being 
managed soundly and demonstrates success, and a need for such 
assistance continues to exist.''.
    (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11905) is amended--
            (1) by striking paragraphs (1) and (2); and
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (1) and (2), respectively.
    (e) Implementation.--Section 5127 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11906) is amended by striking ``Cranston-Gonzalez 
National Affordable Housing Act'' and inserting ``Housing and Community 
Development Act of 1994''.
    (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11907) is amended by striking ``drug-related crime in'' and 
inserting ``crime in and around''.
    (g) Authorization of Appropriations.--Section 5130 of the Anti-Drug 
Abuse Act of 1988 (42 U.S.C. 11909) is amended--
            (1) in subsection (a), by striking the first sentence and 
        inserting the following new sentence: ``There are authorized to 
        be appropriated to carry out this chapter $272,950,000 for 
        fiscal year 1995 and $281,138,500 for fiscal year 1996.'';
            (2) by striking the second sentence of subsection (b); and
            (3) by striking subsection (c).
    (h) Technical Assistance.--Chapter 2 of subtitle C of title V of 
the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.) is amended--
            (1) by redesignating section 5130 as section 5131; and
            (2) by inserting after section 5129 the following new 
        section:

``SEC. 5130. TECHNICAL ASSISTANCE.

    ``(a) Authority.--Of the amounts appropriated annually for each of 
fiscal years 1995 and 1996 to carry out this chapter, the Secretary may 
use an amount not exceeding $10,000,000, directly or indirectly, under 
grants, contracts, cooperative agreements, or otherwise, to provide 
training, information services, and other technical assistance to 
public housing agencies and other entities with respect to their 
participation in the program authorized by this chapter.
    ``(b) Use.--Such technical assistance may include--
            ``(1) the establishment and operation of the clearinghouse 
        on drug abuse in public housing and the regional training 
        program on drug abuse in public housing under sections 5143 and 
        5144 of this Act; and
            ``(2) obtaining assistance in establishing and managing 
        assessment and evaluation criteria and specifications under 
        this chapter, and obtaining the opinions of experts in relevant 
        fields.''.
    (i) Conforming Amendments.--The Anti-Drug Abuse Act of 1988 is 
amended--
            (1) by striking the heading for chapter 2 of subtitle C of 
        title V and inserting the following new heading:

          ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME'';

        and
            (2) in the table of contents in section 5001 (Public Law 
        100-690; 102 Stat. 4295)--
                    (A) by striking the item relating to the heading 
                for chapter 2 of subtitle C and inserting the following 
                new item:

          ``Chapter 2--Community Partnerships Against Crime'';

                    (B) by striking the item relating to section 5122 
                and inserting the following new item:

``Sec. 5122. Purposes.'';..................................
                and
                    (C) by striking the item relating to section 5130 
                and inserting the following new items:

``Sec. 5130. Authorization of appropriations.
``Sec. 5131. Technical assistance.''.

SEC. 162. PUBLIC HOUSING YOUTH SPORTS PROGRAMS.

    Section 520 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 11903a) is amended--
            (1) in subsection (a), by striking ``provided for public 
        and assisted housing drug elimination grants under section 
        5130(a) of the Anti-Drug Abuse Act of 1988'' and inserting 
        ``made available under subsection (k)''; and
            (2) by striking subsection (k) and inserting the following 
        new subsection:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this section $13,647,000 for fiscal year 
1995 and $14,056,925 for fiscal year 1996.''.

SEC. 163. LOW-INCOME HOUSING PRESERVATION.

    (a) Assistance and Incentives.--Section 234 of the Housing and 
Community Development Act of 1987 (12 U.S.C. 4124) is amended to read 
as follows:

``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
assistance and incentives authorized under this subtitle $685,011,183 
for fiscal year 1995 and $705,561,518 for fiscal year 1996.
    ``(b) Grants.--Subject to approval in appropriation Acts, not more 
than $50,000,000 of the amounts made available under subsection (a) for 
fiscal year 1995, and not more than $50,000,000 of the amounts made 
available under subsection (a) for fiscal year 1996, shall be available 
for grants under section 221(d)(2).''.
    (b) Technical Assistance and Capacity Building.--The first sentence 
of section 257 of the Housing and Community Development Act of 1987 (12 
U.S.C. 4147) is amended to read as follows: ``The Secretary shall use 
not more than $25,000,000 of the amounts made available under section 
234(a) for fiscal year 1995, and not more than $25,000,000 of the 
amounts made available under section 234(a) for fiscal year 1996, to 
carry out this subtitle.''.

SEC. 164. FLEXIBLE SUBSIDY PROGRAM.

    (a) Authorization of Appropriations.--Section 201(j)(5) of the 
Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-
1a(j)(5)) is amended to read as follows:
    ``(5) There are authorized to be appropriated for assistance under 
the flexible subsidy fund not to exceed $56,024,172 for fiscal year 
1995 and $57,704,897 for fiscal year 1996.''.
    (b) Use of Section 236 Rental Assistance Fund Amounts.--Section 
236(f)(3) of the National Housing Act (12 U.S.C. 1715z-1(f)(3)) is 
amended by striking ``September 30, 1994'' and inserting ``September 
30, 1996''.

SEC. 165. HOUSING COUNSELING.

    (a) Counseling Services.--The first sentence of section 106(a)(3) 
of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(a)(3)) is amended by striking ``except that'' and all that 
follows through the period at the end and inserting the following: 
``except that for such purposes there are authorized to be appropriated 
$50,000,000 for fiscal year 1995 and $51,500,000 for fiscal year 
1996.''.
    (b) Emergency Homeownership Counseling.--
            (1) Authorization of appropriations.--The first sentence of 
        section 106(c)(8) of the Housing and Urban Development Act of 
        1968 (12 U.S.C. 1701x(c)(8)) is amended to read as follows: 
        ``There are authorized to be appropriated to carry out this 
        section $7,512,820 for fiscal year 1995 and $7,738,205 for 
        fiscal year 1995, of which amounts $1,000,000 shall be 
        available in each such fiscal year to carry out paragraph 
        (5)(D).''.
            (2) Extension of program.--Section 106(c)(9) of the Housing 
        and Urban Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is 
        amended by striking ``September 30, 1994'' and inserting 
        ``September 30, 1996''.
    (c) Prepurchase and Foreclosure-Prevention Counseling 
Demonstration.--
            (1) Authorization of appropriations.--Section 106(d)(12) of 
        the Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701x(d)(12)) is amended to read as follows:
            ``(12) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $391,740 for fiscal year 1995 and $403,492 for fiscal year 
        1996.''.
            (2) Extension of program.--Section 106(d)(13) of the 
        Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701x(d)(13)) is amended by striking ``fiscal year 1994'' and 
        inserting ``fiscal year 1996''.
    (d) Counselor Training and Certification Program.--Section 
106(f)(7) of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(f)(7)) is amended to read as follows:
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $2,146,520 for fiscal year 1995 and $2,210,916 for fiscal year 
        1996.''.

SEC. 166. PREVENTING MORTGAGE DEFAULTS ON MULTIFAMILY HOUSING PROJECTS.

    (a) Multifamily Housing Planning and Investment Strategies.--
            (1) Preparation of assessments for independent entities.--
        Section 402(a) of the Housing and Community Development Act of 
        1992 (12 U.S.C. 1715-1a note) is amended by adding at the end 
        the following new sentence: ``The assessment shall be prepared 
        by an entity that does not have an identity of interest with 
        the owner.''.
            (2) Timing of submission of needs assessments.--Section 
        402(b) of the Housing and Community Development Act of 1992 (12 
        U.S.C. 17152-1a note) is amended to read as follows:
    ``(b) Timing.--To ensure that assessments for all covered 
multifamily housing properties will be submitted on or before the 
conclusion of fiscal year 1997, the Secretary shall require the owners 
of such properties, including covered multifamily housing properties 
for the elderly, to submit the assessments for the properties in 
accordance with the following schedule:
            ``(1) For fiscal year 1994, 10 percent of the aggregate 
        number of such properties.
            ``(2) For each of fiscal years 1995, 1996, and 1997, an 
        additional 30 percent of the aggregate number of such 
        properties.''.
            (3) Review of comprehensive needs assessments.--Section 
        404(d) of the Housing and Community Development Act of 1992 (12 
        U.S.C. 1715-1a note) is amended to read as follows:
    ``(d) Review.--
            ``(1) In general.--The Secretary shall review each 
        comprehensive needs assessment for completeness and adequacy 
        before the expiration of the 90-day period beginning on the 
        receipt of the assessment and shall notify the owner of the 
        property for which the assessment was submitted of the findings 
        of such review.
            ``(2) Incomplete or inadequate assessments.--If the 
        Secretary determines that the assessment is substantially 
        incomplete or inadequate, the Secretary shall--
                    ``(A) notify the owner of the portion or portions 
                of the assessment requiring completion or other 
                revision; and
                    ``(B) require the owner to submit an amended 
                assessment to the Secretary not later than 30 days 
                after such notification.''.
            (4) Repeal of notice provision.--Section 404 of the Housing 
        and Community Development Act of 1992 (12 U.S.C. 1715-1a note) 
        is amended--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f).
            (5) Funding.--Title IV of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-1a note) is amended by 
        adding at the end the following new section:

``SEC. 409. FUNDING.

    ``(a) Allocation of Assistance.--Based upon needs identified in 
comprehensive needs assessments, and subject to otherwise applicable 
program requirements, including selection criteria, the Secretary may 
allocate the following assistance to owners of covered multifamily 
housing projects and may provide such assistance on a noncompetitive 
basis:
            ``(1) Operating assistance and capital improvement 
        assistance for troubled multifamily housing projects pursuant 
        to section 201 of the Housing and Community Development 
        Amendments of 1978, except for assistance set aside under 
        section 201(n)(1).
            ``(2) Loan management assistance available pursuant to 
        section 8 of the United States Housing Act of 1937.
    ``(b) Operating Assistance and Capital Improvement Assistance.--In 
providing assistance under subsection (a) the Secretary shall use the 
selection criteria set forth in section 201(n) of the Housing and 
Community Development Amendments of 1978.
    ``(c) Amount of Assistance.--The Secretary may fund all or only a 
portion of the needs identified in the capital needs assessment of an 
owner selected to receive assistance under this section.''.
    (b) Flexible Subsidy Program.--
            (1) Deletion of utility cost requirements.--Section 201(i) 
        of the Housing and Community Development Amendments of 1978 (12 
        U.S.C. 1715z-1a(i)) is hereby repealed.
            (2) Repeal of mandatory contribution from owner.--Section 
        201(k)(2) of the Housing and Community Development Amendments 
        of 1978 (12 U.S.C. 1715z-1a(k)(2)) is amended by striking ``, 
        except that'' and all that follows and inserting a period.
            (3) Funding.--Section 201(n) of the Housing and Community 
        Development Amendments of 1978 (42 U.S.C. 1715z-1a(n)) is 
        amended to read as follows:
    ``(n) Allocation of Assistance.--
            ``(1) Set-aside.--In providing, and contracting to provide, 
        assistance for capital improvements under this section, in each 
        fiscal year the Secretary shall set aside an amount, as 
        determined by the Secretary, for projects that are eligible for 
        incentives under section 224(b) of the Emergency Low Income 
        Housing Preservation Act of 1987, as such section existed 
        before the date of enactment of the Cranston-Gonzalez National 
        Affordable Housing Act. The Secretary may make such assistance 
        available on a noncompetitive basis.
            ``(2) General rules for allocation.--Except as provided in 
        paragraph (3), with respect to assistance under this section 
        not set aside for projects under paragraph (1), the Secretary--
                    ``(A) may award assistance on a noncompetitive 
                basis; and
                    ``(B) shall award assistance to eligible projects 
                on the basis of--
                            ``(i) the extent to which the project is 
                        physically or financially troubled, as 
                        evidenced by the comprehensive needs assessment 
                        submitted in accordance with title IV of the 
                        Housing and Community Development Act of 1992; 
                        and
                            ``(ii) the extent to which such assistance 
                        is necessary and reasonable to prevent the 
                        default of federally insured mortgages.
            ``(3) Exceptions.--The Secretary may make exceptions to 
        selection criteria set forth in paragraph (2) to permit the 
        provision of assistance to eligible projects based upon--
                    ``(A) the extent to which such assistance is 
                necessary to prevent the imminent foreclosure or 
                default of a project whose owner has not submitted a 
                comprehensive needs assessment pursuant to title IV of 
                the Housing and Community Development Act of 1992;
                    ``(B) the extent to which the project presents an 
                imminent threat to the life, health, and safety of 
                project residents; or
                    ``(C) such other criteria as the Secretary may 
                specify by regulation or by notice printed in the 
                Federal Register.
            ``(4) Considerations.--In providing assistance under this 
        section, the Secretary shall take into consideration--
                    ``(A) the extent to which there is evidence that 
                there will be significant opportunities for residents 
                (including a resident council or resident management 
                corporation, as appropriate) to be involved in the 
                management of the project (except that this paragraph 
                shall have no application to projects that are owned as 
                cooperatives); and
                    ``(B) the extent to which there is evidence that 
                the project owner has provided competent management and 
                complied with all regulatory and administrative 
                handbooks (including such handbooks with respect to the 
                comprehensive servicing of multifamily projects as the 
                Secretary may issue).''.
            (4) Repeal.--Section 201 of the Housing and Community 
        Development Amendments of 1978 (12 U.S.C. 1715z-1a) is 
        amended--
                    (A) by striking subsection (o); and
                    (B) by redesignating subsection (p) as subsection 
                (o).
    (c) Implementation and Effective Date for Subsections (a) and 
(b).--The Secretary shall, by notice published in the Federal Register, 
which shall take effect upon publication, establish such requirements 
as may be necessary to implement the amendments made by subsections (a) 
and (b). The notice shall invite public comments and, not later than 12 
months after the date on which the notice is published, the Secretary 
shall issue final regulations based on the initial notice, taking into 
account any public comments received.
    (d) Streamlined Refinancing.--As soon as practicable, the Secretary 
shall implement a streamlined refinancing program under the authority 
provided in section 223 of the National Housing Act to prevent the 
default of mortgages insured by the FHA which cover multifamily housing 
projects, as defined in section 203(b) of the Housing and Community 
Development Amendments of 1978.
    (e) GAO Study on Prevention of Default.--
            (1) In general.--Not later than September 1, 1995, the 
        Comptroller General of the United States shall submit to 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 a report that evaluates the 
        adequacy of loan loss reserves in the General Insurance and 
        Special Risk Insurance Funds and presents recommendations for 
        the Secretary to prevent losses from occurring.
            (2) Contents.--The report submitted under paragraph (1) 
        shall--
                    (A) evaluate the factors considered in arriving at 
                loss estimates and determine whether other factors 
                should be considered;
                    (B) determine the relative benefit of creating a 
                new, actuarially sound insurance fund for all new 
                multifamily housing insurance commitments; and
                    (C) recommend alternatives to the Secretary's 
                current procedures for preventing the future default of 
                multifamily housing project mortgages insured under 
                title II of the National Housing Act.

SEC. 167. YOUTHBUILD PROGRAM.

    (a) Authorization of Appropriations.--Section 402 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12870), as amended 
by the preceding provisions of this title, is amended by inserting 
after subsection (a) the following new subsection:
    ``(b) Youthbuild Program.--There are authorized to be appropriated 
for activities under subtitle D $50,000,000 for fiscal year 1995 and 
$51,500,000 for fiscal year 1996. Any amounts appropriated pursuant to 
this subsection shall remain available until expended.''.
    (b) Program Name.--The heading for subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
seq.) is amended to read as follows:

                      ``Subtitle D--Youthbuild''.

                 TITLE II--HOME INVESTMENT PARTNERSHIPS

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Section 205 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title 
$2,238,820,360 for fiscal year 1995, and $2,305,984,971 for fiscal year 
1996, of which--
            ``(1) not more than $25,000,000 for fiscal year 1995, and 
        $25,000,000 for fiscal year 1996, shall be for community 
        housing partnership activities authorized under section 233; 
        and
            ``(2) not more than $22,000,000 for fiscal year 1995, and 
        $22,000,000 for fiscal year 1996, shall be for activities in 
        support of State and local housing strategies authorized under 
        subtitle C.''.

SEC. 202. PARTICIPATION BY STATE AGENCIES OR INSTRUMENTALITIES.

    Section 104(2) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704(2)) is amended by inserting before the period at 
the end the following: ``, and any agency or instrumentality thereof 
that is established pursuant to legislation and designated by the chief 
executive to act on behalf of the State with regard to the provisions 
of this Act''.

SEC. 203. SIMPLIFICATION OF PROGRAM-WIDE INCOME TARGETING FOR RENTAL 
              HOUSING.

    Section 214(1) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12744(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``such funds are invested with 
                respect to dwelling units that are occupied by'' and 
                inserting ``(i) the families receiving such rental 
                assistance are''; and
                    (B) by striking ``, and'' and inserting ``or (ii) 
                the dwelling units assisted with such funds are 
                occupied by families having such incomes; and''; and
            (2) in subparagraph (B)--
                    (A) by striking ``such funds are invested with 
                respect to dwelling units that are occupied by'' and 
                inserting ``(i) the families receiving such rental 
                assistance are''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``, or (ii) the dwelling units assisted 
                with such funds are occupied by such households''.

SEC. 204. HOMEOWNERSHIP UNITS.

    (a) Removal of First-Time Homebuyer Requirement.--Section 215(b) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (b) Simplification of Resale Provisions.--Section 215(b)(4)(B) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(4)(B)), as redesignated by subsection (a) of this section, is 
amended by striking ``subsection'' and inserting ``title''.

SEC. 205. COMPREHENSIVE AFFORDABLE HOUSING STRATEGY.

    Section 218(d) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12748(d)) is amended in the first sentence, by inserting 
``that it is complying with a current housing affordability strategy 
that has been approved by the Secretary in accordance with section 105, 
and'' after ``certification''.

SEC. 206. SIMPLIFICATION OF MATCHING REQUIREMENTS.

    Section 220(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12750(a)) is amended to read as follows:
    ``(a) Contribution.--Each participating jurisdiction shall make 
contributions to housing that qualifies as affordable housing under 
this title that total, throughout a fiscal year, not less than 25 
percent of the funds drawn from the jurisdiction's HOME Investment 
Trust Fund in such fiscal year. Such contributions shall be in addition 
to any amounts made available under section 216(3)(A)(ii).''.

SEC. 207. REPEAL OF SEPARATE AUDIT REQUIREMENT.

    Section 283 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12833) is amended--
            (1) by striking the section designation and heading and 
        inserting the following:

``SEC. 283. AUDITS BY COMPTROLLER GENERAL.'';

            (2) by striking subsection (a);
            (3) in subsection (b)--
                    (A) by striking ``(b) Audits by the Comptroller 
                General.--'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subsections (a) and (b), respectively; and
                    (C) by moving subsections (a) and (b), as 
                redesignated by subparagraph (B), 2 ems to the left so 
                that such subsections are flush with the left margin; 
                and
            (4) in subsection (a), as redesignated by paragraph (3)(B), 
        by striking the second sentence.

SEC. 208. ENVIRONMENTAL REVIEW REQUIREMENTS.

    Section 288 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12838) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking 
                ``participating jurisdictions'' and inserting 
                ``jurisdictions, Indian tribes, or insular areas''; and
                    (B) by adding at the end the following new 
                sentences: ``The regulations shall provide--
            ``(1) for the monitoring of the performance of 
        environmental reviews under this section;
            ``(2) in the discretion of the Secretary, for the provision 
        or facilitation of training for the performance of such 
        reviews; and
            ``(3) for the suspension or termination of the assumption 
        under this section.
The Secretary's duty under the preceding sentence shall not be 
construed to limit or reduce any responsibility assumed by a State or 
unit of general local government with respect to any particular release 
of funds.'';
            (2) in the first sentence of subsection (b), by striking 
        ``participating jurisdiction'' and inserting ``jurisdiction, 
        Indian tribe, or insular area'';
            (3) in subsection (c)(4)(B), by striking ``participating 
        jurisdiction'' and inserting ``jurisdiction, Indian tribe, or 
        insular area''; and
            (4) in subsection (d), by striking ``Assistance to a 
        State.--In the case of assistance to States'' and inserting the 
        following: ``Assistance to Units of General Local Government 
        From a State.--In the case of assistance to units of general 
        local government from a State''.

SEC. 209. USE OF CDBG FUNDS FOR HOME PROGRAM EXPENSES.

    (a) Administrative Expenses.--Section 105(a)(13) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by 
inserting after ``charges related to'' the following: ``(A) 
administering the HOME program under title II of the Cranston-Gonzalez 
National Affordable Housing Act; and (B)''.
    (b) Project Delivery Costs.--Section 105(a)(21) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(21)) is amended--
            (1) by inserting ``in connection with tenant-based rental 
        assistance and affordable housing projects assisted under title 
        II of the Cranston-Gonzalez National Affordable Housing Act'' 
        after ``housing counseling''; and
            (2) by striking ``authorized'' and all that follows through 
        ``any law'' and inserting ``assisted under title II of the 
        Cranston-Gonzalez National Affordable Housing Act''.

SEC. 210. GAO STUDY OF USE OF HOME PROGRAM FUNDS.

    The Comptroller General of the United States shall conduct a study 
of the use of amounts provided under title II of the Cranston-Gonzalez 
National Affordable Housing Act to participating jurisdictions for each 
of fiscal years 1992, 1993, and 1994, and the activities undertaken 
with such amounts. The study shall determine, for the amounts provided 
for each such fiscal year--
            (1) the amount expended for single family housing and the 
        types and number of units provided;
            (2) the amount expended for multifamily rental housing and 
        the types and number of units provided;
            (3) the amount expended for new construction of housing and 
        the types and number of units provided;
            (4) the amount expended for rehabilitation of housing and 
        the types and number of units provided; and
            (5) the amount expended pursuant to sections 231 and 232 of 
        the Cranston-Gonzalez National Affordable Housing Act for 
        activities of community housing development organizations, 
        including--
                    (A) the amount expended for providing housing, the 
                types of assistance provided, and types and number of 
                units provided; and
                    (B) the amount expended for technical and other 
                assistance and the types of assistance provided.
Not later than March 31, 1995, the Comptroller General shall submit to 
the Congress a report containing the results of the study conducted 
under this section.

SEC. 211. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE 
              HOUSING.

    Section 4(e) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended to read as follows:
    ``(e) Funding.--From any amounts appropriated to carry out title II 
of the Cranston-Gonzalez National Affordable Housing Act for fiscal 
years 1995 and 1996, $25,000,000 shall be available in each such fiscal 
year to carry out this section.''.

SEC. 212. APPLICABILITY AND REGULATIONS.

    The amendments made by this title shall apply with respect to any 
amounts made available to carry out title II of the Cranston-Gonzalez 
National Affordable Housing Act after the date of the enactment of this 
Act and any amounts made available to carry out such title before such 
date of enactment that remain unobligated on such date. The Secretary 
shall issue any regulations necessary to carry out the amendments made 
by this title not later than the expiration of the 45-day period 
beginning on the date of the enactment of this Act.

                 TITLE III--SUPPORTIVE HOUSING PROGRAMS

SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND FOR 
              PERSONS WITH DISABILITIES.

    Section 601 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 3802) is amended by striking subsection 
(a) and inserting the following new subsection:
    ``(a) Aggregate Funding.--There are authorized to be appropriated 
for the purpose of providing assistance in accordance with section 202 
of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez 
National Affordable Housing Act, $1,591,350,000 for fiscal year 1995 
and $1,639,090,500 for fiscal year 1996.''.

SEC. 302. ELDER COTTAGE HOUSING DEMONSTRATION PROGRAM.

    (a) Funding.--The first sentence of section 806(b)(2) of the 
Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 1701q 
note) is amended to read as follows: ``Notwithstanding any other law, 
the Secretary shall reserve from any amounts available for capital 
advances and project rental assistance under section 202 of the Housing 
Act of 1959, amounts sufficient in each of fiscal years 1995 and 1996 
to provide not less than 100 units under the demonstration under this 
subsection in connection with each such section.''.
    (b) Report.--Section 806(b)(3) of the Cranston-Gonzalez National 
Affordable Housing Act (12 U.S.C. 1701q note) is amended by striking 
``January 1, 1994, the Secretary shall submit a'' and inserting 
``January 1, 1995, the Secretary shall submit an interim''.

SEC. 303. REVISED CONGREGATE SERVICES.

    Section 802(n)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8011(n)(1)) is amended by striking the matter 
preceding subparagraph (A) and inserting the following:
            ``(1) Authorization and use.--There are authorized to be 
        appropriated to carry out this section $25,750,000 for fiscal 
        year 1995, and $26,522,500 for fiscal year 1996, of which not 
        more than--''.

SEC. 304. ELDERLY INDEPENDENCE DEMONSTRATION.

    (a) Section 8 Assistance.--The first sentence of section 803(j) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8012(j)) is amended to read as follows: ``The budget authority 
available under section 5(c) of the United States Housing Act of 1937 
for assistance under section 8 of such Act is authorized to be 
increased by $41,092,979 on or after October 1, 1994, and by 
$42,325,768 on or after October 1, 1995.''.
    (b) Supportive Services Authorization.--The first sentence of 
section 803(k) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8012(k)) is amended to read as follows: ``There are 
authorized to be appropriated for the Secretary to carry out the 
responsibilities for supportive services under the demonstrations under 
this section $10,732,600 to become available in fiscal year 1995, and 
$11,054,578 to become available in fiscal year 1996.''.
    (c) Amendment to Heading.--Section 803(k) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C.8012) is amended by striking 
the section designation and heading and inserting the following:

``SEC. 803. ELDERLY INDEPENDENCE DEMONSTRATION.''.

SEC. 305. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    (a) Authorization of Appropriations.--Section 863 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12912) is amended 
to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $250,000,000 for fiscal year 1995 and $257,500,000 for fiscal 
year 1996.''.
    (b) Technical Assistance.--Section 854(c)(3) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12903(c)(3)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) nonprofit organizations that 
                        provide technical assistance on a national, 
                        regional, or State-wide basis to nonprofit 
                        organizations carrying out eligible activities 
                        under section 855 for eligible persons, to 
                        provide such technical assistance, except that 
                        not more than 2 percent of the amounts 
                        available in any fiscal year for allocation 
                        under this paragraph shall be used as provided 
                        in this clause.''; and
            (2) in subparagraph (B), by striking ``this paragraph'' and 
        inserting ``clauses (i) and (ii) of subparagraph (A)''.
    (c) Cooperation.--
            (1) In general.--Section 856(c) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12905(c)) is amended 
        by striking ``The recipient'' and all that follows and 
        inserting the following: ``The recipient shall establish and 
        implement a process for ensuring coordination and community 
        input in planning for and providing services assisted with 
        amounts provided under this subtitle. The planning process 
        shall include consultation and coordination with the agencies 
        of the relevant State and local governments responsible for 
        services for eligible persons in the area served by the 
        applicant and with other public and private organizations and 
        agencies providing services for such eligible persons 
        (including individuals with human immunodeficiency virus 
        disease), including community-based and AIDS service 
        organizations, providers of social services, providers of 
        mental health care, providers of substance abuse treatment 
        services, nonprofit providers of housing for eligible persons, 
        and affected communities.''.
            (2) Application.--Section 854(d) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12903(d)) is 
        amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) by redesignating paragraph (6) as paragraph (7); and
            (3) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) a description of the activities to be undertaken in 
        fulfilling the requirements under section 856(c); and''.
    (d) Administrative Expenses.--Section 856(g)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12905(g)(2)) is 
amended--
            (1) by striking ``title'' and inserting ``subtitle''; and
            (2) by striking ``, including the costs of staff necessary 
        to carry out eligible activities''.

SEC. 306. SERVICE COORDINATORS.

    (a) Public Housing.--Section 9 of the United States Housing Act of 
1937 (42 U.S.C. 1437g) is amended--
            (1) in subsection (a)(1)(B)(ii)--
                    (A) in the 1st sentence, by striking ``Annual'' and 
                all that follows through ``such project,'' and 
                inserting ``To the extent amounts are made available 
                pursuant to section 5(c) for carrying out this clause, 
                the Secretary may increase the annual contributions 
                provided under this section to any public housing 
                agency for any project to provide''; and
                    (B) by striking the last 2 sentences.
    (b) Other Federally Assisted Multifamily Housing.--Section 676(c) 
of the Housing and Community Development Act of 1992 (42 U.S.C. 
13632(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 1995 and 1996.''.

       TITLE IV--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET

       Subtitle A--Mortgage Insurance and Loan Guarantee Programs

SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

    Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) 
is amended to read as follows:
    ``(b) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for insurance, to the authority 
provided in this Act, and to the limitation in subsection (a), the 
Secretary shall enter into commitments to insure mortgages under this 
Act with an aggregate principal amount of $105,000,000,000 during 
fiscal year 1995 and $105,000,000,000 during fiscal year 1996.''.

SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD.

    Section 202(b)(11) of the National Housing Act (12 U.S.C. 
1708(b)(11)) is amended by striking ``January 1, 1995.'' and inserting 
``January 1, 1997.''.

SEC. 403. HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY HOMEOWNERS.

    The 1st sentence of section 255(g) of the National Housing Act (12 
U.S.C. 1715z-20(g)) is amended by striking ``September 30, 1995'' and 
inserting ``September 30, 1996''.

SEC. 404. MULTIFAMILY HOUSING FINANCING PROGRAMS.

    (a) Funding.--
            (1) Risk-sharing pilot program.--Section 542(b)(5) of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 1707 
        note) is amended by striking ``fiscal years 1993 and 1994'' and 
        inserting ``fiscal years 1995 and 1996''.
            (2) Housing finance agency pilot program.--Section 
        542(c)(4) of the Housing and Community Development Act of 1992 
        (12 U.S.C. 1707 note) is amended by striking ``30,000 units 
        over fiscal years 1993, 1994, and 1995'' and inserting ``10,000 
        units in fiscal year 1996''.
    (b) Amendments to Risk-Sharing Pilot Program.--Section 542(b) of 
the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) 
is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following new paragraphs:
            ``(1) In general.--The Secretary shall carry out a pilot 
        program in conjunction with qualified participating entities to 
        determine the effectiveness of Federal credit enhancement for 
        loans for affordable multifamily housing through a system of 
        risk-sharing agreements with such entitled.
            ``(2) Program requirements.--
                    ``(A) In general.--In carrying out the pilot 
                program under this subsection, the Secretary shall 
                enter into risk-sharing agreements with qualified 
                participating entities.
                    ``(B) Mortgage insurance and reinsurance.--
                Agreements under subparagraph (A) may provide for (i) 
                insurance through the Federal Housing Administration of 
                loans for affordable multifamily housing originated by 
                or through, or purchased by, qualified participating 
                entities, and (ii) reinsurance, including reinsurance 
                of pools of loans, on affordable multifamily housing. 
                In entering into risk-sharing agreements under this 
                subsection covering mortgages, the Secretary may give 
                preference to mortgages that are not already in the 
                portfolios of qualified participating entities.
                    ``(C) Risk apportionment.--Agreements entered into 
                under this subsection between the Secretary and a 
                qualified participating entity shall specify the 
                percentage of loss that each of the parties to the 
                agreement will assume in the event of default of the 
                insured or reinsured multifamily mortgage. Such 
                agreements shall specify that the qualified 
                participating entity and the Secretary shall share any 
                loss in accordance with the risk-sharing agreement.
                    ``(D) Reimbursement capacity.--Agreements entered 
                into under this subsection between the Secretary and a 
                qualified participating entity shall provide evidence 
                acceptable to the Secretary of the capacity of such 
                entity to fulfill any reimbursement obligations made 
                pursuant to this subsection. Evidence of such capacity 
                which may be considered by the Secretary may include--
                            ``(i) a pledge of the full faith and credit 
                        of a qualified participating entity to fulfill 
                        any obligations entered into by the entity;
                            ``(ii) reserves pledged or otherwise 
                        restricted by the qualified participating 
                        entity in an amount equal to an agreed upon 
                        percentage of the loss assumed by the entity 
                        under subparagraph (C);
                            ``(iii) funds pledged through a State or 
                        local guarantee fund; or
                            ``(iv) any other form of evidence mutually 
                        agreed upon by the Secretary and the qualified 
                        participating entity.
                    ``(E) Underwriting standards.--The Secretary shall 
                allow any qualified participating entity to use its own 
                underwriting standards and loan terms and conditions 
                for purposes of underwriting loans to be insured under 
                this subsection, except as provided in this section, 
                without further review by the Secretary, except that 
                the Secretary may impose additional underwriting 
                criteria and loan terms and conditions for contractual 
                agreements where the Secretary retains more than 50 
                percent of the risk of loss. Any financing permitted on 
                property insured under this subsection other than the 
                first mortgage shall be expressly subordinate to the 
                insured mortgage.
                    ``(F) Authority of secretary.--The Secretary, upon 
                request of a qualified participating entity, may insure 
                or reinsure and make commitments to insure or reinsure 
                under this section any mortgage, advance, loan, or pool 
                of mortgages otherwise eligible under this section, 
                pursuant to a risk-sharing agreement providing that the 
                qualified participating entity will carry out (under a 
                delegation or otherwise, and with or without 
                compensation, but subject to audit, exception, or 
                review requirements) such credit approval, appraisal, 
                inspection, issuance of commitments, approval of 
                insurance of advances, cost certification, servicing, 
                property disposition, or other functions as the 
                Secretary shall approve as consistent with the purpose 
                of this section. All appraisals of property for 
                mortgage insurance under this section shall be 
                completed by a Certified General Appraiser in 
                accordance with the Uniform Standards of Professional 
                Appraisal Practice.
                    ``(G) Disclosure of records.--Qualified 
                participating entities shall make available to the 
                Secretary or the Secretary's designee, at the 
                Secretary's request, such financial and other records 
                as the Secretary deems necessary for purposes of review 
                and monitoring for the program under this section.
                    ``(H) Ineligibility of housing for transient or 
                hotel purposes.--Notwithstanding any other provision of 
                this section, no new, existing, or rehabilitated 
                multifamily housing with respect to which a mortgage is 
                insured or reinsured under this subsection shall be 
                operated for transient or hotel purposes. For purposes 
                of this paragraph, the term `rental for transient or 
                hotel purposes' shall have such meaning as prescribed 
                by the Secretary, except that rental for any period 
                less than 30 days shall constitute rental for such 
                purposes.'';
            (2) in paragraph (4), by striking ``financial institutions 
        and entities to be eligible to enter into reinsurance 
        agreements'' and inserting ``eligibility under this subsection 
        of qualified participating entities'';
            (3) in the first sentence of paragraph (5), by striking 
        ``1993 and 1994'' and inserting ``1995 and 1996'';
            (4) by striking paragraph (8) and inserting the following 
        new paragraph:
            ``(11) Implementation.--The Secretary shall take any 
        administrative actions necessary to initiate the pilot program 
        under this subsection.''; and
            (5) by inserting after paragraph (7) the following new 
        paragraphs:
            ``(8) Prohibition on ginnie mae securitization.--The 
        Government National Mortgage Association shall not securitize 
        any multifamily loans insured or reinsured under this 
        subsection.
            ``(9) Qualification as affordable housing.--Multifamily 
        housing securing loans insured or reinsured under this 
        subsection shall qualify as affordable only if the housing is 
        occupied by families and bears rents not greater than the gross 
        rent for rent-restricted residential units as determined under 
        section 42(g) of the Internal Revenue Code of 1986.
            ``(10) Certification of subsidy layering compliance.--In 
        the case of projects allocated a low-income housing tax credit 
        pursuant to section 42 of the Internal Revenue Code of 1986, 
        the requirements of section 102(d) of the Department of Housing 
        and Urban Development Reform Act of 1989 may be satisfied in 
        connection with a commitment to insure a mortgage under this 
        subsection by a certification by a housing credit agency 
        (including an entity established by a State that provides 
        mortgage insurance) to the Secretary that the combination of 
        assistance within the jurisdiction of the Secretary and other 
        government assistance provided in connection with a property 
        for which a mortgage is to be insured shall not be any greater 
        than is necessary to provide affordable housing.''.
    (c) Amendments to Housing Finance Agency Pilot Program.--Section 
542(c) of the Housing and Community Development Act of 1992 (12 U.S.C. 
1707 note) is amended--
            (1) in paragraph (1), by inserting after ``qualified 
        housing finance agencies'' the following: ``(including entities 
        established by States that provide mortgage insurance)'';
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking the last 
                sentence and inserting the following: ``Such agreements 
                shall specify that the qualified housing finance agency 
                and the Secretary shall share any loss in accordance 
                with the risk-sharing agreement.'';
                    (B) in subparagraph (E), by adding at the end the 
                following new sentence: ``Any financing permitted on 
                property insured under this subsection other than the 
                first mortgage shall be expressly subordinate to the 
                insured mortgage.''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) Disclosure of records.--Qualified housing 
                finance agencies shall make available to the Secretary 
                such financial and other records as the Secretary deems 
                necessary for program review and monitoring 
                purposes.'';
            (3) in paragraph (7)--
                    (A) by striking ``very low-income''; and
                    (B) by striking ``42(g)(2)'' and inserting 
                ``42(g)'';
            (4) by redesignating paragraph (8) as paragraph (9); and
            (5) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Environmental and other reviews.--
                    ``(A) Environmental reviews.--
                            ``(i) In general.--(I) In order to ensure 
                        that the policies of the National Environmental 
                        Policy Act of 1969 and other provisions of law 
                        which further the purposes of such Act (as 
                        specified in regulations issued by the 
                        Secretary) are most effectively implemented in 
                        connection with the insurance of mortgages 
                        under paragraph (2) and to assure to the public 
                        undiminished protection of the environment, the 
                        Secretary, in lieu of the environmental 
                        protection procedures otherwise applicable, may 
                        under such regulations provide for agreements 
                        to endorse for insurance mortgages under 
                        paragraph (2) upon the request of a qualified 
                        housing finance agency under this subsection if 
                        the State or unit of general local government, 
                        as designated by the Secretary in accordance 
                        with regulations, assumes all of the 
                        responsibilities for environmental review, 
                        decisionmaking, and action pursuant to such 
                        Act, and such other provisions of law as the 
                        regulations of the Secretary specify, that 
                        would otherwise apply to the Secretary with 
                        respect to the insurance of mortgages on 
                        particular properties.
                            ``(II) The Secretary shall issue 
                        regulations to carry out this subparagraph only 
                        after consultation with the Council on 
                        Environmental Quality. Such regulations shall, 
                        among other matters, provide (aa) for the 
                        monitoring of the performance of environmental 
                        reviews under this subparagraph, (bb) in the 
                        discretion of the Secretary, for the provision 
                        or facilitation of training for the performance 
                        of such reviews, and (cc) in the discretion of 
                        the Secretary, for the suspension or 
                        termination of the assumption under subclause 
                        (I). The Secretary's duty under the preceding 
                        sentence shall not be construed to limit or 
                        reduce any responsibility assumed by a State or 
                        unit of general local government with respect 
                        to any particular property under subclause (I).
                            ``(ii) Procedure.--Where the provisions 
                        authorized by this paragraph apply, the 
                        Secretary shall approve a mortgage for the 
                        provision of mortgage insurance only if the 
                        qualified housing finance agency submits to the 
                        Secretary a request for such approval--
                                    ``(I) not less than 15 days prior 
                                to such approval;
                                    ``(II) prior to any approval, 
                                commitment, or endorsement of mortgage 
                                insurance on the property on behalf of 
                                the Secretary; and
                                    ``(III) prior to any commitment by 
                                the qualified housing finance agency to 
                                provide financing under the risk-
                                sharing agreement with respect to the 
                                property.
                        The request for approval shall be accompanied 
                        by a certification of the State or unit of 
                        general local government that meets the 
                        requirements of clause (iii). Approval by the 
                        Secretary of any such certification shall be 
                        deemed to satisfy the Secretary's 
                        responsibilities under the National 
                        Environmental Policy Act of 1969 and such other 
                        provisions of law as the regulations of the 
                        Secretary specify insofar as such 
                        responsibilities relate to the provision of 
                        mortgage insurance on the property that is 
                        covered by such certification.
                            ``(iii) Certification.--A certification 
                        under the procedures authorized by this 
                        paragraph shall--
                                    ``(I) be in a form acceptable to 
                                the Secretary;
                                    ``(II) be executed by the chief 
                                executive officer or other officer of 
                                the State or unit of general local 
                                government who qualifies under 
                                regulations of the Secretary;
                                    ``(III) specify that the State or 
                                unit of general local government under 
                                this section has fully carried out its 
                                responsibilities as described under 
                                clause (i); and
                                    ``(IV) specify that the certifying 
                                officer consents to assume the status 
                                of a responsible Federal official under 
                                the National Environmental Policy Act 
                                of 1969 and each provision of law 
                                specified in regulations issued by the 
                                Secretary insofar as the provisions of 
                                such Act or other such provision of law 
                                apply pursuant to clause (i), and is 
                                authorized and consents on behalf of 
                                the State or unit of general local 
                                government and himself or herself to 
                                accept the jurisdiction of the Federal 
                                courts for the purpose of enforcement 
                                of the responsibilities as such an 
                                official.
                            ``(iv) Approval by states.--In cases where 
                        a unit of general local government carries out 
                        the responsibilities described under clause 
                        (i), the Secretary may permit the State to 
                        perform those actions of the Secretary 
                        described in clause (ii) and the performance of 
                        such actions by the State, where permitted by 
                        the Secretary, shall be deemed to satisfy the 
                        Secretary's responsibilities referred to in the 
                        third sentence of clause (ii).
                    ``(B) Lead-based paint poisoning prevention.--In 
                carrying out the requirements of section 302 of the 
                Lead-Based Paint Poisoning Prevention Act, the 
                Secretary may provide by regulation for the assumption 
                of all or part of the Secretary's duties under such Act 
                by qualified housing finance agencies, for purposes of 
                this section.
                    ``(C) Certification of subsidy layering 
                compliance.--In the case of projects allocated a low-
                income housing tax credit pursuant to section 42 of the 
                Internal Revenue Code of 1986, the requirements of 
                section 102(d) of the Department of Housing and Urban 
                Development Reform Act of 1989 may be satisfied in 
                connection with a commitment to insure a mortgage under 
                this subsection by a certification by a housing credit 
                agency (including an entity established by a State that 
                provides mortgage insurance) to the Secretary that the 
                combination of assistance within the jurisdiction of 
                the Secretary and other government assistance provided 
                in connection with a property for which a mortgage is 
                to be insured shall not be any greater than is 
                necessary to provide affordable housing.''.
    (d) Definitions.--Section 544 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1707 note) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) The term `multifamily housing' means housing 
        accommodations on the mortgaged property that are designed 
        principally for residential use, conform to standards 
        satisfactory to the Secretary, and consist of not less than 5 
        rental units on 1 site. Such units may be detached, 
        semidetached, row house, or multifamily structures.'';
            (2) by redesignating paragraphs (1) (as so amended), (2), 
        (3), and (4) as paragraphs (3), (4), (6), and (7), 
        respectively;
            (3) by inserting before paragraph (3) (as so redesignated) 
        the following new paragraphs:
            ``(1) The term `first mortgage' means a single first lien 
        that is given to secure advances on, or the unpaid purchase 
        price of, real estate, under the laws of the State in which the 
        real estate is located, together with the credit instrument, if 
        any, secured thereby.
            ``(2) The term `mortgage' means a first mortgage on real 
        estate that is--
                    ``(A) owned in fee simple; or
                    ``(B) on a leasehold--
                            ``(i) under a lease for not less than 99 
                        years that is renewable; or
                            ``(ii) under a lease having a period of not 
                        less than 10 years to run beyond the maturity 
                        of the mortgage.'';
            (4) by inserting after paragraph (4) (as so redesignated) 
        the following new paragraph:
            ``(5) The term `qualified participating entity' means an 
        entity approved by the Secretary for participation in the pilot 
        program under this subsection, which may include--
                    ``(A) the Federal National Mortgage Association;
                    ``(B) the Federal Home Loan Mortgage Corporation;
                    ``(C) housing finance agencies; and
                    ``(D) the Federal Housing Finance Board.''; and
            (5) by adding at the end the following new paragraph:
            ``(8) The terms `unit of general local government' and 
        `State' have the meanings given such terms in section 102(a) of 
        the Housing and Community Development Act of 1974.''.
    (e) National Interagency Task Force on Multifamily Housing.--The 
first sentence of section 543(h) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1707 note) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
section $6,439,560 for fiscal year 1995 and $6,632,747 for fiscal year 
1996.''.

SEC. 405. INDIAN HOUSING LOAN GUARANTEES.

    (a) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(C)(5)) is amended by striking ``fiscal years 1993 
and 1994'' and inserting ``fiscal years 1995 and 1996''.
    (b) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(7)) is amended to read as follows:
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section $50,000,000 for fiscal year 1995 and 
        $50,000,000 for fiscal year 1996.''.

          Subtitle B--Multifamily Housing Property Disposition

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Multifamily Housing Property 
Disposition Reform Act''.

SEC. 432. DISPOSITION OF MULTIFAMILY HOUSING PROJECTS OWNED BY HUD.

    (a) Congressional Findings.--The Congress finds that--
            (1) the portfolio of multifamily housing project mortgages 
        insured by the FHA is severely troubled and at risk of default, 
        requiring the Secretary to increase loss reserves from 
        $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to cover 
        estimated future losses;
            (2) the inventory of multifamily housing projects owned by 
        the Secretary has more than tripled since 1989;
            (3) the cost to the Federal Government of owning and 
        maintaining multifamily housing projects escalated to 
        approximately $250,000,000 in fiscal year 1992;
            (4) the inventory of multifamily housing projects subject 
        to mortgages held by the Secretary has increased dramatically, 
        to more than 2,400 mortgages, and approximately half of these 
        mortgages, with over 230,000 units, are delinquent;
            (5) the inventory of insured and formerly insured 
        multifamily housing projects is rapidly deteriorating, 
        endangering tenants and neighborhoods;
            (6) many of the more than 5 million families having a 
        critical need for housing that is affordable and habitable 
        could benefit from the disposition of projects in the inventory 
        owned by the Secretary; and
            (7) the current statutory framework governing the 
        disposition of multifamily housing projects effectively impedes 
        the Government's ability to dispose of projects, protect 
        tenants, and ensure that projects are maintained over time.
    (b) Management and Disposition of Multifamily Housing Projects.--
Section 203 of the Housing and Community Development Amendments of 1978 
(12 U.S.C. 1701z-11) is amended to read as follows:

``SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS.

    ``(a) Goals.--The Secretary of Housing and Urban Development shall 
manage or dispose of multifamily housing projects that are owned by the 
Secretary or that are subject to a mortgage held by the Secretary in a 
manner consistent with this section that--
            ``(1) is consistent with the National Housing Act;
            ``(2) will, in the least costly fashion among reasonable 
        available alternatives, preserve the housing as available to 
        and affordable by low-income families;
            ``(3) will protect the financial interests of the Federal 
        Government; and
            ``(4) will, in the least costly fashion among reasonable 
        available alternatives, further the goals of--
                    ``(A) preserving and revitalizing residential 
                neighborhoods;
                    ``(B) maintaining existing housing stock in a 
                decent, safe, and sanitary condition;
                    ``(C) minimizing the involuntary displacement of 
                tenants;
                    ``(D) maintaining housing for the purpose of 
                providing rental housing, cooperative housing, and 
                homeownership opportunities for low-income persons; and
                    ``(E) minimizing the need to demolish multifamily 
                housing projects.
The Secretary, in determining the manner in which a project is to be 
managed or disposed of, may balance competing goals relating to 
individual projects in a manner that will further the purposes of this 
section.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Multifamily housing project.--The term `multifamily 
        housing project' means any multifamily rental housing project 
        which is, or prior to acquisition by the Secretary was, 
        assisted or insured under the National Housing Act, or was 
        subject to a loan under section 202 of the Housing Act of 1959.
            ``(2) Assisted project.--The term `assisted project' means 
        a multifamily housing project that, immediately prior to the 
        assignment of the mortgage on such project to, or the 
        acquisition of such mortgage by, the Secretary, was receiving 
        any of the following types of assistance:
                    ``(A) Rent supplement payments under section 101 of 
                the Housing and Urban Development Act of 1965.
                    ``(B) Additional assistance payments under section 
                236(f)(2) of the National Housing Act.
                    ``(C) Housing assistance payments made under 
                section 23 of the United States Housing Act of 1937 (as 
                in effect before January 1, 1975).
                    ``(D) Housing assistance payments made under 
                section 8 of the United States Housing Act of 1937 
                (excluding payments made for tenant-based assistance 
                under section 8).
            ``(3) Affordable.--A unit shall be considered affordable 
        if--
                    ``(A) for units occupied--
                            ``(i) by very low-income families, the rent 
                        does not exceed 30 percent of 50 percent of the 
                        area median income, as determined by the 
                        Secretary, with adjustments for smaller and 
                        larger families, except that the Secretary may 
                        establish the rent based on an amount higher or 
                        lower than 50 percent of the median for the 
                        area on the basis of the Secretary's findings 
                        that such variation is necessary because of 
                        prevailing levels of construction costs or fair 
                        market rents, or unusually high or low family 
                        incomes; and
                            ``(ii) by low-income families other than 
                        very low-income families, the rent does not 
                        exceed 30 percent of 80 percent of the area 
                        median income, as determined by the Secretary, 
                        except that the Secretary may establish the 
                        rent based on an amount higher or lower than 80 
                        percent of the median for the area on the basis 
                        of the Secretary's findings that such variation 
                        is necessary because of prevailing levels of 
                        construction costs or fair market rents, or 
                        unusually high or low family incomes; or
                    ``(B) assistance is provided under section 8 of the 
                United States Housing Act of 1937 for the unit or on 
                behalf of the family residing in the unit.
            ``(4) Date of disposition.--The term `date of disposition' 
        means, with respect to a multifamily housing project acquired 
        pursuant to this section by a purchaser other than the 
        Secretary at foreclosure or after sale by the Secretary, the 
        date on which the project is acquired by the purchaser.
            ``(5) Low-income families and very low-income families.--
        The terms `low-income families' and `very low-income families' 
        shall have the meanings given the terms in section 3(b) of the 
        United States Housing Act of 1937.
            ``(6) Preexisting tenant.--The term `preexisting tenant' 
        means, with respect to a multifamily housing project acquired 
        pursuant to this section by a purchaser other than the 
        Secretary at foreclosure or after sale by the Secretary, a 
        family that resides in a unit in the project immediately before 
        the date of disposition of the project.
            ``(7) Market area.--The term `market area' means a market 
        area determined by the Secretary for purposes of establishing 
        fair market rentals under section 8(e) of the United States 
        Housing Act of 1937.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
    ``(c) Management or Disposition of Projects.--
            ``(1) Disposition to purchasers.--The Secretary may, in 
        carrying out this section, dispose of a multifamily housing 
        project owned by the Secretary on a negotiated, competitive 
        bid, or other basis, on such terms as the Secretary deems 
        appropriate considering the low-income character of the project 
        and the market area in which the project is located and the 
        requirements of this section, to a purchaser determined by the 
        Secretary to be capable of--
                    ``(A) satisfying the conditions of the disposition;
                    ``(B) implementing a sound financial and physical 
                management program that is designed to enable the 
                project to meet anticipated operating and repair 
                expenses to ensure that the project will remain in 
                decent, safe, and sanitary condition;
                    ``(C) responding to the needs of the tenants and 
                working cooperatively with tenant organizations;
                    ``(D) providing adequate organizational, staff, and 
                financial resources to the project; and
                    ``(E) meeting such other requirements as the 
                Secretary may determine.
            ``(2) Contracting for management services.--The Secretary 
        may, in carrying out this section--
                    ``(A) contract for management services for a 
                multifamily housing project that is owned by the 
                Secretary (or for which the Secretary is mortgagee in 
                possession), on a negotiated, competitive bid, or other 
                basis at a price determined by the Secretary to be 
                reasonable, with a manager the Secretary has determined 
                is capable of--
                            ``(i) implementing a sound financial and 
                        physical management program that is designed to 
                        enable the project to meet anticipated 
                        operating and maintenance expenses to ensure 
                        that the project will remain in decent, safe, 
                        and sanitary condition;
                            ``(ii) responding to the needs of the 
                        tenants and working cooperatively with tenant 
                        organizations;
                            ``(iii) providing adequate organizational, 
                        staff, and other resources to implement a 
                        management program determined by the Secretary; 
                        and
                            ``(iv) meeting such other requirements as 
                        the Secretary may determine;
                    ``(B) require the owner of a multifamily housing 
                project that is subject to a mortgage held by the 
                Secretary to contract for management services for the 
                project in the manner described in subparagraph (A); 
                and
                    ``(C) contract for management of such projects with 
                nonprofit organizations and public agencies, including 
                public housing authorities.
    ``(d) Maintenance of Housing Projects.--
            ``(1) Housing projects owned by the secretary.--In the case 
        of multifamily housing projects that are owned by the Secretary 
        (or for which the Secretary is mortgagee in possession), the 
        Secretary shall--
                    ``(A) to the greatest extent possible, maintain all 
                such occupied projects in a decent, safe, and sanitary 
                condition;
                    ``(B) to the greatest extent possible, maintain 
                full occupancy in all such projects; and
                    ``(C) maintain all such projects for purposes of 
                providing rental or cooperative housing.
            ``(2) Housing projects subject to a mortgage held by 
        secretary.--In the case of any multifamily housing project that 
        is subject to a mortgage held by the Secretary, the Secretary 
        shall require the owner of the project to carry out the 
        requirements of paragraph (1).
            ``(3) Housing standards.--In disposing of any multifamily 
        housing project under this section, the Secretary shall enter 
        into an agreement with the purchaser under which the purchaser 
        agrees that the project will be rehabilitated so that it is in 
        compliance with, and will be maintained in compliance with, any 
        standards under applicable State or local laws, rules, 
        ordinances, or regulations relating to the physical condition 
        of the housing and any such standards established by the 
        Secretary.
    ``(e) Required Disposition Assistance for Assisted Projects.--
Except as provided in subsection (f), in disposing of any assisted 
project to a purchaser other than the Secretary at foreclosure or after 
sale by the Secretary, the Secretary shall enter into a contract under 
section 8 of the United States Housing Act of 1937 (to the extent 
budget authority is available) with the owner of the assisted project 
to provide project-based assistance under such section for the project, 
subject to the following requirements:
            ``(1) Number of units assisted.--The contract shall be 
        sufficient to assist at least all units in the assisted project 
        covered by an assistance contract under any of the authorities 
        referred to in subsection (b)(2) immediately before the date of 
        disposition of the project.
            ``(2) Vacancies.--The contract shall provide that, when a 
        vacancy occurs in any unit in the assisted project requiring 
        project-based rental assistance pursuant to this subsection 
        that is occupied by a family who is not eligible for assistance 
        under such section 8, the owner shall lease the available unit 
        to a family eligible for assistance under such section 8.
    ``(f) Option to Substitute Tenant-Based Disposition Assistance for 
Assisted Projects in Soft Markets.--
            ``(1) Authority.--In disposing of any assisted project that 
        is located in a market area in which, in the determination of 
        the Secretary, an adequate supply of habitable, affordable 
        housing for very low-income families and other low-income 
        families is available, the Secretary may, for any unit in the 
        assisted project otherwise required to receive assistance 
        pursuant to subsection (e), provide tenant-based assistance 
        under section 8 of the United States Housing Act of 1937 on 
        behalf of one low-income family instead of providing project-
        based assistance for the unit.
            ``(2) Family assisted.--Notwithstanding any other provision 
        of law, the tenant-based assistance provided under this 
        subsection to replace project-based assistance otherwise 
        required for a unit in an assisted project shall be used on 
        behalf of the family that is the preexisting tenant of such 
        unit, during the period beginning upon the availability of such 
        assistance and ending upon the earlier of (A) the expiration of 
        the term of the assistance contract for the tenant-based 
        assistance, or (B) the time at which such family first fails to 
        qualify for such assistance. If, pursuant to the preceding 
        sentence, such assistance ceases to be used on behalf of the 
        preexisting tenant family of the unit, the public housing 
        agency administering such assistance may make the assistance 
        available to another family qualified to receive such 
        assistance from the agency.
            ``(3) Assistance contract.--Tenant-based assistance under 
        this subsection shall be provided pursuant to an annual 
        contribution contract entered into by the Secretary and the 
        appropriate public housing agency.
            ``(4) Applicability of availability and affordability 
        restrictions.--The requirements of subsection (g) shall apply 
        to any unit in an assisted project for which project-based 
        assistance otherwise required under subsection (e) has been 
        replaced pursuant to this subsection by providing tenant-based 
        assistance.
    ``(g) Required Availability and Affordability Restrictions for 
Unassisted Units.--
            ``(1) In general.--In disposing of any multifamily housing 
        project to a purchaser other than the Secretary at foreclosure 
        or after sale by the Secretary, the Secretary shall require the 
        purchaser of the project to establish use or rent restrictions 
        for the project to ensure compliance, during the remaining 
        useful life of the project (as defined by the Secretary), with 
        the following requirements:
                    ``(A) Low-income use.--Subject to subparagraph (B), 
                any unit in the project that does not receive project-
                based assistance under subsection (e) shall be made 
                available to only low-income families and shall be 
                affordable to such families.
                    ``(B) Very low-income units.--In the project, not 
                less than 40 percent of the units referred to in 
                subparagraph (A) shall be made available to only very 
                low-income families and shall be affordable to such 
                families.
                    ``(C) Rent restrictions for unassisted very low-
                income families.--Any unassisted very low-income family 
                who is a preexisting tenant of the project may not pay 
                as rent for a unit in the project an amount in excess 
                of 30 percent of the adjusted income of the family at 
                any time during the period beginning upon the date of 
                disposition of the project and ending upon the time at 
                which the family first fails to qualify as a very low-
                income family.
                    ``(D) Phase-in of rent increases.--If the 
                disposition under this section of any multifamily 
                housing project results in any rent increase for any 
                unassisted very low-income family who is a preexisting 
                tenant of the project and is paying less than 30 
                percent of the adjusted income of the family for rent, 
                such rent increases shall be phased in equally over a 
                period of not less than 3 years.
            ``(2) Assistance for very low-income tenants.--If, as a 
        result of actions taken pursuant to this subsection, the rent 
        charged to any very low-income family residing in a unit in the 
        project for which project-based assistance under subsection (e) 
        is not provided exceeds the amount payable as rent under 
        paragraph (1)(C), the Secretary shall provide assistance under 
        section 8 of such Act on behalf of such family.
            ``(3) Definition of `unassisted very low-income family'.--
        For purposes of this subsection, the term `unassisted very low-
        income family' means a very low-income family who resides in a 
        unit that is not assisted with project-based assistance under 
        section 8 of the United States Housing Act of 1937 and on whose 
        behalf tenant-based assistance under such section is not 
        provided.
    ``(h) Discretionary Actions and Assistance.--In disposing of any 
multifamily housing project under this section, the Secretary may take, 
in combination with the actions required under subsections (e), (f), 
and (g), one or more of the following actions:
            ``(1) Discounted sales price.--In accordance with the 
        authority provided under the National Housing Act, the 
        Secretary may reduce the selling price of the project. Such 
        reduced sales price shall be reasonably related to the intended 
        use of the property after sale, any rehabilitation requirements 
        for the project, the rents for units in the project that can be 
        supported by the market, the amount of rental assistance 
        available for the project under section 8 of the United States 
        Housing Act of 1937, and the occupancy profile of the project.
            ``(2) Short-term loans.--The Secretary may provide a short-
        term loan to facilitate the sale of a multifamily housing 
        project if--
                    ``(A) the loan has a term of not more than 5 years;
                    ``(B) the Secretary determines, based upon 
                documentation provided to the Secretary, that the 
                borrower has obtained a commitment of permanent 
                financing to replace the short-term loan from a lender 
                who meets standards established by the Secretary; and
                    ``(C) the terms of the loan are consistent with 
                prevailing practices in the marketplace or the 
                provision of the loan results in no cost to the 
                Government, as defined in section 502 of the 
                Congressional Budget Act of 1974.
        To the extent or in such amounts as are provided in 
        appropriation Acts, during each of fiscal years 1995 and 1996 
        the Secretary may enter into loan commitments under this 
        paragraph and make loans under this paragraph with an aggregate 
        principal amount of $50,000,000. There are authorized to be 
        appropriated such sums as may be necessary to cover any costs 
        (as such term is defined in section 502 of the Congressional 
        Budget Act of 1974) of loan obligations entered into pursuant 
        to this paragraph.
            ``(3) Up-front grants and loans.--
                    ``(A) In general.--The Secretary may utilize the 
                budget authority provided for contracts issued under 
                this section for project-based assistance under section 
                8 of the United States Housing Act of 1937 to (in 
                addition to providing project-based section 8 rental 
                assistance)--
                            ``(i) provide up-front grants and loans to 
                        nonprofit organizations or public agencies 
                        (including public housing agencies) for the 
                        necessary cost of rehabilitation and other 
                        related development costs; or
                            ``(ii) pay any cost to the Government, as 
                        defined in section 502 of the Congressional 
                        Budget Act of 1974, for loans made pursuant to 
                        paragraph (3) of this subsection.
                    ``(B) Applicability of use restrictions.--The 
                requirements under subsection (g) regarding units not 
                receiving project-based assistance under subsection (e) 
                shall apply with respect to any units in a project 
                assisted under this paragraph that otherwise would have 
                received project-based assistance under section 8 of 
                the United States Housing Act of 1937.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated for grants and loans 
                under this paragraph $250,000,000 for each of fiscal 
                years 1995 and 1996, of which such sums as may be 
                necessary shall be available in each such fiscal year 
                for the costs (as such term is defined in section 502 
                of the Congressional Budget Act of 1974) of such loans.
            ``(4) Alternative uses.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, after providing notice to and an 
                opportunity to comment by preexisting tenants, the 
                Secretary may allow not more than 5 percent of the 
                total number of units in multifamily housing projects 
                that are disposed of by the Secretary during any single 
                fiscal year to be made available for--
                            ``(i) uses (other than rental or 
                        cooperative uses) that benefit the tenants of 
                        the project, including low-income homeownership 
                        opportunities, or in any particular project, 
                        community space, office space for tenant or 
                        housing-related service providers or security 
                        programs, or small business uses; or
                            ``(ii) any other uses, if the Secretary and 
                        the unit of general local government or area-
                        wide governing body determine that such use 
                        will further fair housing, community 
                        development, or neighborhood revitalization 
                        goals.
                    ``(B) Displacement protection.--The Secretary may 
                take actions under subparagraph (A) only if--
                            ``(i) tenant-based rental assistance under 
                        section 8 of the United States Housing Act of 
                        1937 is made available to each eligible family 
                        residing in the project that is displaced as a 
                        result of such actions; and
                            ``(ii) the Secretary determines that 
                        sufficient habitable, affordable rental housing 
                        is available in the market area in which the 
                        project is located to allow use of such 
                        assistance.
            ``(5) Transfer for use under other programs of secretary.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, the Secretary may transfer a 
                multifamily housing project--
                            ``(i) to a public housing agency for use of 
                        the project as public housing; or
                            ``(ii) to an entity eligible to own or 
                        operate housing assisted under section 202 of 
                        the Housing Act of 1959 or under section 811 of 
                        the Cranston-Gonzalez National Affordable 
                        Housing Act for use as supportive housing under 
                        either of such sections.
                    ``(B) Requirements for agreement.--An agreement 
                providing for the transfer of a project described in 
                subparagraph (A) shall--
                            ``(i) contain such terms, conditions, and 
                        limitations as the Secretary determines 
                        appropriate, including requirements to ensure 
                        use of the project as public housing, 
                        supportive housing under section 202 of the 
                        Housing Act of 1959, or supportive housing 
                        under section 811 of the Cranston-Gonzalez 
                        National Affordable Housing Act, as applicable; 
                        and
                            ``(ii) ensure that no tenant of the project 
                        will be displaced as a result of actions taken 
                        under this paragraph.
    ``(i) Contract Requirements.--Contracts for project-based rental 
assistance under section 8 of the United States Housing Act of 1937 
provided pursuant to this section shall be subject to the following 
requirements:
            ``(1) Contract term.--The contract shall have a term of 15 
        years, except that--
                    ``(A) the term may be less than 15 years to the 
                extent that the Secretary finds that, based on the 
                rental charges and financing for the multifamily 
                housing project to which the contract relates, the 
                financial viability of the project can be maintained 
                under a contract having such a term;
                    ``(B) to the extent that units receive project-
                based assistance for a contract term of less than 15 
                years, the Secretary shall require that the amount of 
                rent payable by tenants of the project for such units 
                shall not exceed the amount payable for rent under 
                section 3(a) of the United States Housing Act of 1937 
                for a period of at least 15 years; and
                    ``(C) the term may be less than 15 years if such 
                assistance is provided--
                            ``(i) under a contract authorized under 
                        section 6 of the HUD Demonstration Act of 1993; 
                        and
                            ``(ii) pursuant to a disposition plan under 
                        this section for a project that is determined 
                        by the Secretary to be otherwise in compliance 
                        with this section.
            ``(2) Contract rent.--The Secretary shall establish 
        contract rents for section 8 project-based rental contracts 
        issued under this section at levels that provide sufficient 
        amounts for the necessary costs of acquiring (if any), 
        rehabilitating, and operating the multifamily housing project 
        and do not exceed 144 percent of the existing housing fair 
        market rentals for the market area in which the project 
        assisted under the contract is located.
    ``(j) Disposition Plan.--
            ``(1) In general.--Prior to the sale of a multifamily 
        housing project that is owned by the Secretary, the Secretary 
        shall develop an initial disposition plan for the project that 
        specifies the minimum terms and conditions of the Secretary for 
        disposition of the project, the initial sales price that is 
        acceptable to the Secretary, and the assistance that the 
        Secretary plans to make available to a prospective purchaser in 
        accordance with this section.
            ``(2) Market-wide plans.--In developing initial disposition 
        plans under this subsection, the Secretary shall coordinate the 
        disposition of multifamily housing projects located within the 
        same market area to the extent and in such manner as the 
        Secretary determines appropriate to carry out the goals under 
        subsection (a).
            ``(3) Sales price.--The initial sales price shall be 
        reasonably related to the intended use of the property after 
        sale, any rehabilitation requirements for the project, the 
        rents for units in the project that can be supported by the 
        market, the amount of rental assistance available for the 
        project under section 8 of the United States Housing Act of 
        1937, and the occupancy profile of the project.
            ``(4) Community and tenant input.--In carrying out this 
        section, the Secretary shall develop procedures--
                    ``(A) to obtain appropriate and timely input into 
                disposition plans from officials of the unit of general 
                local government and any State government affected, the 
                community in which the project is situated, and the 
                tenants of the project; and
                    ``(B) to facilitate, where feasible and 
                appropriate, the sale of multifamily housing projects 
                to existing tenant organizations with demonstrated 
                capacity, to public or nonprofit entities that 
                represent or are affiliated with existing tenant 
                organizations, or to other public or nonprofit 
                entities.
            ``(5) Technical assistance.--To carry out the procedures 
        developed under paragraph (4), the Secretary may provide 
        technical assistance, directly or indirectly, and may use 
        amounts available for technical assistance under the Emergency 
        Low Income Housing Preservation Act of 1987, subtitle C of the 
        Low-Income Housing Preservation and Resident Homeownership Act 
        of 1990, subtitle B of title IV of the Cranston-Gonzalez 
        National Affordable Housing Act, or this section, for the 
        provision of technical assistance under this paragraph. 
        Recipients of technical assistance funding under the provisions 
        referred to in this paragraph shall be permitted to provide 
        technical assistance to the extent of such funding under any of 
        such provisions or under this paragraph, notwithstanding the 
        source of the funding.
    ``(k) Right of First Refusal for Local and State Government 
Agencies.--
            ``(1) Notification of acquisition of title.--Not later than 
        30 days after acquiring title to a multifamily housing project, 
        the Secretary shall notify the unit of general local government 
        (which, for purposes of this subsection, shall include any 
        public housing agency) for the area in which the project is 
        located and the State agency or agencies designated by the 
        Governor of the State in which the project is located of such 
        acquisition.
            ``(2) Right of first refusal.--During the period beginning 
        upon acquisition of title to a multifamily housing project and 
        ending 45 days after completion of notification under paragraph 
        (1), the Secretary may offer to sell and may sell the project 
        only to the unit of general local government or the designated 
        State agency.
            ``(3) Expression of interest.--The unit of general local 
        government or designated State agency may submit to the 
        Secretary a preliminary expression of interest in a project not 
        later than 45 days after receiving notification from the 
        Secretary under paragraph (1) regarding the project. The 
        Secretary may take such actions as may be necessary to require 
        the unit of general local government or designated State agency 
        to substantiate such interest.
            ``(4) Timely expression of interest.--If the unit of 
        general local government or designated State agency has 
        submitted an expression of interest in a project before the 
        expiration of the 45-day period referred to in paragraph (3) 
        and has substantiated such interest if requested, the 
        Secretary, upon approval of a disposition plan for the project, 
        shall--
                    ``(A) notify the unit of general local government 
                and designated State agency of the terms and conditions 
                of the disposition plan; and
                    ``(B) provide that, for 90 days after the date of 
                such notification, only the unit of general local 
                government or designated State agency may make an offer 
                to purchase the project.
            ``(5) Failure to timely express interest.--If the unit of 
        general local government or designated State agency does not 
        timely express and, if requested, substantiate interest in a 
        project as provided in paragraph (4), the Secretary may offer 
        the project for sale to any interested person or entity upon 
        approval of the disposition plan for the project.
            ``(6) Acceptance of offers.--If the unit of general local 
        government or designated State agency timely expresses and, if 
        requested, substantiates interest in a project as provided in 
        paragraph (4), the Secretary shall accept an offer made by the 
        unit of general local government or designated State agency 
        during the 90-day period for the project under paragraph (4)(B) 
        that complies with the terms and conditions of the disposition 
        plan for the project. 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 goals specified in subsection (a) by actions 
        that include extension of the duration of low-income 
        affordability restrictions or otherwise restructuring the 
        transaction in a manner that enhances the long-term 
        affordability for low-income persons. The Secretary may reduce 
        the initial sales price in exchange for the extension of low-
        income affordability restrictions beyond the period of 
        assistance contemplated by the attachment of assistance 
        pursuant to subsection (i)(1) and in order to facilitate 
        affordable rents.
            ``(7) Failure to sell to local or state government 
        agency.--If the Secretary and the unit of general local 
        government or designated State agency cannot reach agreement on 
        an offer for purchase of a project within the 90-day period for 
        the project under paragraph (4)(B), the Secretary may offer the 
        project for sale to the general public.
            ``(8) Purchase by unit of general local government or 
        designated state agency.--Notwithstanding any other provision 
        of law, a unit of general local government (including a public 
        housing agency) or designated State agency may purchase a 
        project in accordance with this subsection.
            ``(9) Applicability.--This subsection shall apply to 
        projects that are acquired on or after the effective date of 
        this subsection. With respect to projects acquired before such 
        effective date, the Secretary may apply--
                    ``(A) the requirements of paragraphs (2) and (3) of 
                section 203(e) (as in effect immediately before the 
                effective date of this subsection); or
                    ``(B) the requirements of paragraphs (1) through 
                (7) of this subsection, if--
                            ``(i) the Secretary gives the unit of 
                        general local government or designated State 
                        agency 45 days to express interest in the 
                        project; and
                            ``(ii) the unit of general local government 
                        or designated State agency expresses interest 
                        in the project before the expiration of the 45-
                        day period, and substantiates such interest if 
                        requested, within 90 days from the date of 
                        notification of the terms and conditions of the 
                        disposition plan to make an offer to purchase 
                        the project.
            ``(10) Transfer by local or state government agency 
        purchasers.--The Secretary shall permit units of general local 
        government and designated State agencies to transfer 
        multifamily housing projects acquired under the right of first 
        refusal under this subsection to a private entity, but only if 
        the local government or State agency identifies--
                    ``(A) in the offer to purchase the project accepted 
                by the Secretary under this subsection, whether it may 
                transfer the project after acquisition; and
                    ``(B) before the project is transferred, the date 
                of the transfer and the transferee.
    ``(l) Displacement of Tenants and Relocation Assistance.--
            ``(1) In general.--Whenever tenants will be displaced as a 
        result of the disposition of, or repairs to, a multifamily 
        housing project that is owned by the Secretary (or for which 
        the Secretary is mortgagee in possession), the Secretary shall 
        identify tenants who will be displaced and shall notify all 
        such tenants of their pending displacement and of any 
        relocation assistance that may be available. In the case of the 
        displacement of tenants of a multifamily housing project that 
        is not owned by the Secretary (and for which the Secretary is 
        not mortgagee in possession), the Secretary shall require the 
        owner of the project to carry out the requirements of this 
        paragraph.
            ``(2) Rights of displaced tenants.--The Secretary shall 
        ensure for any such tenant (who continues to meet applicable 
        qualification standards) the right--
                    ``(A) to return, whenever possible, to a repaired 
                unit;
                    ``(B) to occupy a unit in another multifamily 
                housing project owned by the Secretary;
                    ``(C) to obtain housing assistance under the United 
                States Housing Act of 1937; or
                    ``(D) to receive any other available relocation 
                assistance as the Secretary determines to be 
                appropriate.
    ``(m) Mortgage and Project Sales.--
            ``(1) In general.--The Secretary may not approve the sale 
        of any loan or mortgage held by the Secretary (including any 
        loan or mortgage owned by the Government National Mortgage 
        Association) on any subsidized project or formerly subsidized 
        project, unless such sale is made as part of a transaction that 
        will ensure that such project will continue to operate at least 
        until the maturity date of such loan or mortgage, in a manner 
        that will provide rental housing on terms at least as 
        advantageous to existing and future tenants as the terms 
        required by the program under which the loan or mortgage was 
        made or insured prior to the assignment of the loan or mortgage 
        on such project to the Secretary.
            ``(2) Sale of certain projects.--The Secretary may not 
        approve the sale of any subsidized project--
                    ``(A) that is subject to a mortgage held by the 
                Secretary; or
                    ``(B) if the sale transaction involves the 
                provision of any additional subsidy funds by the 
                Secretary or a recasting of the mortgage, unless such 
                sale is made as part of a transaction that will ensure 
                that such project will continue to operate at least 
                until the maturity date of the loan or mortgage, in a 
                manner that will provide rental housing on terms at 
                least as advantageous to existing and future tenants as 
                the terms required by the program under which the loan 
                or mortgage was made or insured prior to the proposed 
                sale of the project.
            ``(3) Mortgage sales to state and local governments.--
        Notwithstanding any provision of law that may require 
        competitive sales or bidding, the Secretary may carry out 
        negotiated sales of subsidized or formerly subsidized mortgages 
        held by the Secretary, without the competitive selection of 
        purchasers or intermediaries, to units of general local 
        government or State agencies, or groups of investors that 
        include at least one such unit of general local government or 
        State agency, if the negotiations are conducted with such 
        agencies, except that--
                    ``(A) the terms of any such sale shall include the 
                agreement of the purchasing agency or unit of local 
                government or State agency to act as mortgagee or owner 
                of a beneficial interest in such mortgages, in a manner 
                consistent with maintaining the projects that are 
                subject to such mortgages for occupancy by the general 
                tenant group intended to be served by the applicable 
                mortgage insurance program, including, to the extent 
                the Secretary determines appropriate, authorizing such 
                unit of local government or State agency to enforce the 
                provisions of any regulatory agreement or other program 
                requirements applicable to the related projects; and
                    ``(B) the sales prices for such mortgages shall be, 
                in the determination of the Secretary, the best prices 
                that may be obtained for such mortgages from a unit of 
                general local government or State agency, consistent 
                with the expectation and intention that the projects 
                financed will be retained for use under the applicable 
                mortgage insurance program for the life of the initial 
                mortgage insurance contract.
            ``(4) Sale of mortgages covering unsubsidized projects.--
        Notwithstanding any other provision of law, the Secretary may 
        sell mortgages held on unsubsidized projects on such terms and 
        conditions as the Secretary may prescribe.
            ``(5) Definitions.--For purposes of this subsection:
                    ``(A) Subsidized project.--The term `subsidized 
                project' means a multifamily housing project that, 
                immediately prior to the assignment of the mortgage on 
                such project to, or the acquisition of such mortgage 
                by, the Secretary, was receiving any of the following 
                types of assistance:
                            ``(i) Below market interest rate mortgage 
                        insurance under the proviso of section 
                        221(d)(5) of the National Housing Act.
                            ``(ii) Interest reduction payments made in 
                        connection with mortgages insured under section 
                        236 of the National Housing Act.
                            ``(iii) Direct loans made under section 202 
                        of the Housing Act of 1959.
                            ``(iv) Assistance in the form of--
                                    ``(I) rent supplement payments 
                                under section 101 of the Housing and 
                                Urban Development Act of 1965;
                                    ``(II) housing assistance payments 
                                made under section 23 of the United 
                                States Housing Act of 1937 (as in 
                                effect before January 1, 1975); or
                                    ``(III) housing assistance payments 
                                made under section 8 of the United 
                                States Housing Act of 1937 (excluding 
                                payments made for tenant-based 
                                assistance under section 8),
                        if (except for purposes of section 183(c) of 
                        the Housing and Community Development Act of 
                        1987) such assistance payments are made to more 
                        than 50 percent of the units in the project.
                    ``(B) Formerly subsidized project.--The term 
                `formerly subsidized project' means a multifamily 
                housing project owned by the Secretary that was a 
                subsidized project immediately prior to its acquisition 
                by the Secretary.
                    ``(C) Unsubsidized project.--The term `unsubsidized 
                project' means a multifamily housing project owned by 
                the Secretary that is not a subsidized project or a 
                formerly subsidized project.
    ``(n) HUD Disposition Team.--
            ``(1) In general.--The Secretary shall establish and 
        maintain within the Department of Housing and Urban Development 
        a multifamily housing disposition team under this subsection 
        consisting of employees of the Department. The Secretary may 
        disband the multifamily housing disposition team only after 
        determining that the inventory of multifamily housing projects 
        that are owned by the Secretary or subject to a mortgage held 
        by the Secretary existing upon the date of the enactment of 
        this subsection has been eliminated or substantially reduced.
            ``(2) Duties.--The sole responsibilities of the multifamily 
        housing disposition team shall be to facilitate the disposition 
        under this section of multifamily housing projects that are 
        owned by the Secretary or are subject to a mortgage held by the 
        Secretary for the purpose of eliminating the inventory of such 
        projects of the Department of Housing and Urban Development.
            ``(3) Activities.--In carrying out its responsibilities 
        under paragraph (2), the multifamily housing disposition team 
        shall--
                    ``(A) review the inventory of multifamily housing 
                projects of the Department of Housing and Urban 
                Development;
                    ``(B) determine the locations having the most such 
                projects;
                    ``(C) make on-site visits to area, field, and other 
                local offices of the Department to conduct its 
                responsibilities with respect to multifamily housing 
                projects located within the jurisdiction of such 
                offices, giving priority to offices in locations having 
                the most such projects; and
                    ``(D) assist the employees and staff of such 
                offices to establish schedules and disposition plans 
                for the disposition of multifamily housing projects 
                located within the jurisdiction of such offices and to 
                implement such schedules, plans, and disposition.
            ``(4) Use of existing employees.--This subsection may not 
        be construed to require or authorize the Secretary to establish 
        any employment position in addition to the number of employment 
        positions of the Department of Housing and Urban Development 
        otherwise authorized in law.
    ``(o) Report to Congress.--Not later than June 1 of each year, the 
Secretary shall submit to the Congress a report describing the status 
of multifamily housing projects owned by or subject to mortgages held 
by the Secretary. The report shall include--
            ``(1) the name, address, and size of each project;
            ``(2) the nature and date of assignment of each project;
            ``(3) the status of the mortgage for each project;
            ``(4) the physical condition of each project;
            ``(5) for each project, an occupancy profile of the 
        project, stating the income, family size, race, and ethnic 
        origin of current residents and the rents paid by such 
        residents, to the extent such information is available;
            ``(6) the proportion of units in each project that are 
        vacant;
            ``(7) the date on which the Secretary became mortgagee in 
        possession of each project, if applicable;
            ``(8) the date and conditions of any foreclosure sale for a 
        project;
            ``(9) the date of acquisition of each project by the 
        Secretary, if applicable;
            ``(10) the date and conditions of any property disposition 
        sale for a project;
            ``(11) a description of actions undertaken pursuant to this 
        section, including a description of the effectiveness of such 
        actions and any impediments to the disposition or management of 
        multifamily housing projects;
            ``(12) a description of any of the functions performed in 
        connection with this section that are contracted out to public 
        or private entities or to States; and
            ``(13) a description of the activities carried out under 
        subsection (k) during the preceding year.''.

SEC. 433. CLARIFICATION OF PUBLIC HOUSING PREFERENCES.

    Section 6(c)(4)(A)(i) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(c)(4)(A)(i)) is amended by inserting after ``displaced'' 
the following: ``(including displacement because of disposition of a 
multifamily housing project under section 203 of the Housing and 
Community Development Amendments of 1978)''.

SEC. 434. AMENDMENT TO NATIONAL HOUSING ACT.

    Title V of the National Housing Act (12 U.S.C. 1731a et seq.) is 
amended by adding at the end the following new section:

      ``partial payment of claims on multifamily housing projects

    ``Sec. 541. (a) Authority.--Notwithstanding any other provision of 
law, if the Secretary is requested to accept assignment of a mortgage 
insured by the Secretary that covers a multifamily housing project (as 
such term is defined in section 203(b) of the Housing and Community 
Development Amendments of 1978) and the Secretary determines that 
partial payment would be less costly to the Federal Government than 
other reasonable alternatives for maintaining the low-income character 
of the project, the Secretary may request the mortgagee, in lieu of 
assignment, to--
            ``(1) accept partial payment of the claim under the 
        mortgage insurance contract; and
            ``(2) recast the mortgage, under such terms and conditions 
        as the Secretary may determine.
    ``(b) Repayment.--As a condition to a partial claim payment under 
this section, the mortgagor shall agree to repay to the Secretary the 
amount of such payment and such obligation shall be secured by a second 
mortgage on the property on such terms and conditions as the Secretary 
may determine.''.

SEC. 435. EFFECTIVE DATE.

    The Secretary shall issue interim regulations necessary to 
implement the amendments made by sections 432 and 433 not later than 90 
days after the date of the enactment of this Act. Such interim 
regulations shall take effect upon issuance and invite public comment 
on the interim regulations. The Secretary shall issue final regulations 
to implement such amendments after opportunity for such public comment, 
but not later than 12 months after the date of issuance of such interim 
regulations.

             Subtitle C--Secondary Mortgage Market Programs

SEC. 451. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED SECURITIES.

    Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows:
    ``(2) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for guarantees, to the authority 
provided in this subsection, and to the extent of or in such amounts as 
any funding limitation approved in appropriation Acts, the Association 
shall enter into commitments to issue guarantees under this subsection 
in an aggregate amount of $130,000,000,000 during fiscal year 1995 and 
$130,000,000,000 during fiscal year 1996. There are authorized to be 
appropriated to cover the costs (as such term is defined in section 502 
of the Congressional Budget Act of 1974) of guarantees issued under 
this Act by the Association such sums as may be necessary for each of 
fiscal years 1995 and 1996.''.

                 Subtitle D--Emergency Mortgage Relief

SEC. 471. AMENDMENTS TO EMERGENCY HOMEOWNERS' RELIEF ACT.

    (a) Findings.--Section 102(a) of the Emergency Homeowners' Relief 
Act (12 U.S.C. 2701(a)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) certain homeowners in the United States are 
        encountering severe economic hardships as a result of 
        unemployment or a reduction in income;'';
            (2) in paragraph (2), by striking ``adverse economic 
        conditions'' and inserting ``economic hardships''; and
            (3) in paragraph (3), by striking ``economic conditions'' 
        and inserting ``their economic conditions''.
    (b) Mortgages Eligible for Assistance.--Section 103 of the 
Emergency Homeowners' Relief Act (12 U.S.C. 2702) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6)--
                    (A) by inserting ``a 1- to 4-family residence that 
                is'' after ``is''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the delinquency for which the holder of the mortgage 
        intends to foreclose commenced after the date of the enactment 
        of the Housing and Community Development Act of 1994.''.
    (c) Authorization of Appropriations.--Section 109(a) of the 
Emergency Homeowners' Relief Act (12 U.S.C. 2708(a)) is amended by 
striking ``, except that'' and all that follows through 
``$500,000,000'' and inserting ``for fiscal years 1995 and 1996''.
    (d) Expiration Date.--Section 109(b) of the Emergency Homeowners' 
Relief Act (12 U.S.C. 2708(b)) is amended by striking ``September 30, 
1977'' and inserting ``September 30, 1996''.
    (e) Notification.--Section 110 of the Emergency Homeowners' Relief 
Act (12 U.S.C. 2709) is amended--
            (1) in clause (1) of the 1st sentence--
                    (A) by striking ``October 1, 1977'' and inserting 
                ``September 30, 1996''; and
                    (B) by inserting ``single family'' before 
                ``residential'';
            (2) in clause (2) of the 1st sentence, by striking ``until 
        one year from the date of the enactment of this title'' and 
        inserting ``during fiscal years 1995 and 1996''; and
            (3) in the 2d sentence, by striking ``Federal Home Loan 
        Bank Board, the Federal Savings and Loan Insurance 
        Corporation'' and inserting ``Office of Thrift Supervision''.
    (f) Reports.--Section 111 of the Emergency Homeowners' Relief Act 
(12 U.S.C. 2710) is amended--
            (1) by striking ``Within'' and all that follows through 
        ``Congress on'' and inserting the following: ``For fiscal year 
        1995 and each fiscal year thereafter that begins before the 
        date in section 109(b), the Secretary shall submit a report 
        under this section to the Congress. The report for a fiscal 
        year shall be submitted not later than 60 days after the end of 
        the fiscal year and shall describe'';
            (2) by striking ``purposes'' and inserting ``purpose'';
            (3) by inserting ``and'' before ``(4)''; and
            (4) by striking ``; and (5)'' and all that follows and 
        inserting a period.

                         TITLE V--RURAL HOUSING

SEC. 501. PROGRAM AUTHORIZATIONS.

    (a) Insurance and Guarantee Authority.--Section 513(a) of the 
Housing Act of 1949 (42 U.S.C. 1483(a)) is amended to read as follows:
    ``(a) Insurance and Guarantee Authority.--
            ``(1) In general.--The Secretary may, to the extent 
        approved in appropriation Acts, insure and guarantee loans 
        under this title during fiscal years 1995 and 1996, in 
        aggregate amounts not to exceed $3,424,779,720 and 
        $3,527,523,112, respectively, as follows:
                    ``(A) For insured or guaranteed loans under section 
                502 on behalf of low-income borrowers receiving 
                assistance under section 521(a)(1), $1,802,500,000 for 
                fiscal year 1995 and $1,856,575,000 for fiscal year 
                1996.
                    ``(B) For guaranteed loans under section 502(h) on 
                behalf of low- and moderate-income borrowers, 
                $772,500,000 for fiscal year 1995 and $795,675,000 for 
                fiscal year 1996.
                    ``(C) For loans under section 504, $36,050,000 for 
                fiscal year 1995 and $37,131,500 for fiscal year 1996.
                    ``(D) For insured loans under section 514, 
                $18,053,950 for fiscal year 1995 and $18,595,569 for 
                fiscal year 1996.
                    ``(E) For insured loans under section 515, 
                $793,675,770 for fiscal year 1995 and $817,486,043 for 
                fiscal year 1996.
                    ``(F) For loans under section 523(b)(1)(B), 
                $1,000,000 for fiscal year 1995 and $1,030,000 for 
                fiscal year 1996.
                    ``(G) For site loans under section 524, $1,000,000 
                for fiscal year 1995 and $1,030,000 for fiscal year 
                1996.
            ``(2) Limitation on use.--Notwithstanding any other 
        provision of law, insured or guaranteed loan authority in this 
        title for any fiscal year shall not be transferred or used for 
        any purpose not specified in this title.''.
    (b) Authorization of Appropriations.--Section 513(b) of the Housing 
Act of 1949 (42 U.S.C. 1483(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996, and to remain available 
until expended, the following amounts:
            ``(1) For grants under section 502(c)(5)(C)(i), $10,000,000 
        for fiscal year 1995, and $10,000,000 for fiscal year 1996.
            ``(2) For grants under section 504, $31,000,000 for fiscal 
        year 1995 and $31,930,000 for fiscal year 1996.
            ``(3) For purposes of section 509(c), $1,000,000 for fiscal 
        year 1995 and $1,030,000 for fiscal year 1996.
            ``(4) For project preparation grants under section 
        509(f)(6), $5,688,278 for fiscal year 1995 and $5,858,926 for 
        fiscal year 1996.
            ``(5) In fiscal years 1995 and 1996, such sums as may be 
        necessary to meet payments on notes or other obligations issued 
        by the Secretary under section 511 equal to--
                    ``(A) the aggregate of the contributions made by 
                the Secretary in the form of credits on principal due 
                on loans made pursuant to section 503; and
                    ``(B) the interest due on a similar sum represented 
                by notes or other obligations issued by the Secretary.
            ``(6) For grants for service coordinators under section 
        515(y), $1,073,260 for fiscal year 1995 and $1,105,458 for 
        fiscal year 1996.
            ``(7) For financial assistance under section 516--
                    ``(A) for low-rent housing and related facilities 
                for domestic farm labor under subsections (a) through 
                (j) of such section, $23,289,742 for fiscal year 1995 
                and $23,988,434 for fiscal year 1996; and
                    ``(B) for housing for rural homeless and migrant 
                farmworkers under subsection (k) of such section, 
                $11,269,230 for fiscal year 1995 and $11,607,307 for 
                fiscal year 1996.
            ``(8) For grants under section 523(f), $14,918,314 for 
        fiscal year 1995 and $15,365,863 for fiscal year 1996.
            ``(9) For grants under section 533, $33,056,408 for fiscal 
        year 1993 and $34,048,100 for fiscal year 1994.
            ``(10) For grants under section 538, $10,000,000 for fiscal 
        year 1995, which shall remain available until the end of fiscal 
        year 1997.
            ``(11) For assistance under section 539, $20,000,000 for 
        fiscal year 1995 and $20,600,000 for fiscal year 1996.''.
    (c) Rental Assistance Payment Contracts.--Section 513(c) of the 
Housing Act of 1949 (42 U.S.C. 1483(c)(1)) is amended by striking 
``(c)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(c) Rental and Operating Assistance.--(1) The Secretary, to the 
extent approved in appropriations Acts for fiscal years 1995 and 1996, 
may enter into rental assistance payment contracts under section 
521(a)(2)(A) and contracts for operating assistance under section 
521(a)(5), aggregating $454,079,620 for fiscal year 1995 and 
$467,702,009 for fiscal year 1996.''.
    (d) Supplemental Rental Assistance Payment Contracts.--Section 
513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) is amended to 
read as follows:
    ``(d) Supplemental Rental Assistance Contracts.--The Secretary, to 
the extent approved in appropriations Acts for fiscal years 1995 and 
1996, may enter into 5-year supplemental rental assistance contracts 
under section 502(c)(5)(D) aggregating $13,070,160 for fiscal year 1995 
and $13,462,265 for fiscal year 1996.''.
    (e) Rural Housing Voucher Authority.--Section 513(e) of the Housing 
Act of 1949 (42 U.S.C. 1483(e)) is amended to read as follows:
    ``(e) Rural Housing Vouchers.--There are authorized to be 
appropriated for rural housing vouchers under section 542, $144,200,000 
for fiscal year 1995 and $148,526,000 for fiscal year 1996.''.
    (f) Rental Housing Loan Authority.--Section 515(b) of the Housing 
Act of 1949 (42 U.S.C. 1485(b)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 502. SECTION 502 HOMEOWNERSHIP LOANS.

    (a) Remote Rural Areas.--Section 502(f) of the Housing Act of 1949 
(42 U.S.C. 1472(f)) is amended--
            (1) by striking paragraph (1):
            (2) by redesignating paragraph (2) as paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Security.--In making a loan under this section for 
        housing located in a rural area that is a remote rural area 
        (which shall include tribal allotted or Indian trust land) 
        where the borrower resides or is employed, the Secretary shall 
        consider the actual cost of the property and structure for 
        which the loan is made as adequate security for the loan 
        required under subsection (b).''.
    (b) Permanent Deferred Mortgage Program.--Section 502(g) of the 
Housing Act of 1949 (42 U.S.C. 1472(g)) is amended--
            (1) in the subsection heading, by striking 
        ``Demonstration'' and inserting ``Program''; and
            (2) by striking paragraph (3).
    (c) Reamortization and Refinancing.--Section 505 of the Housing Act 
of 1949 (42 U.S.C. 1475) is amended--
            (1) in the section heading, by inserting ``, 
        reamortization, and'' after ``moratorium'';
            (2) in subsection (a), by inserting before the last 
        sentence the following: ``The Secretary may not foreclose such 
        a mortgage securing such a loan upon which a moratorium has 
        been granted solely because the borrower does not have the 
        ability to repay the loan. Upon the expiration of a moratorium, 
        the Secretary shall enter into an agreement with the borrower 
        providing to the borrower such assistance as the Secretary is 
        authorized to provide under this section and may foreclose with 
        respect to the loan only if the borrower fails to make 3 
        monthly payments required under such agreement.'';
            (3) by redesignating subsection (b) as subsection (c); and
            (4) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Reamortization and Refinancing.--
            ``(1) Authority.--With respect to a loan made under section 
        502, after a moratorium under subsection (a) of this section 
        for the loan or at any other time the Secretary considers 
        appropriate and necessary to enable the borrower under the loan 
        to retain possession of the home securing the loan, the 
        Secretary may--
                    ``(A) reamortize the outstanding indebtedness, 
                including principal and interest, under the loan for a 
                period not to exceed 38 years from the date of the 
                making of the loan, subject to the provisions of 
                paragraph (2); or
                    ``(B) make a new loan under section 502 to the 
                borrower, the proceeds of which shall be used to 
                liquidate such indebtedness.
            ``(2) Graduated repayment agreement.--In reamortizing a 
        loan pursuant to paragraph (1)(A), the Secretary may establish 
        a schedule of payments under the loan that provides for 
        payments in an amount less than the amount of the payments 
        originally provided for under the loan agreement for a period 
        not exceeding 3 years.''.

SEC. 503. PREPAYMENT OF RURAL RENTAL HOUSING LOANS.

    (a) Technical Assistance Grants for Nonprofit and Public Agency 
Purchasers of Prepayment Properties.--Section 502(c)(5)(C)(i) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is amended to read as 
follows:
                            ``(i) to the extent provided in 
                        appropriation Acts, make a grant in an amount 
                        not exceeding $50,000 to the nonprofit 
                        organization or public agency whose offer to 
                        purchase is accepted under this paragraph to 
                        cover reasonable costs, as determined by the 
                        Secretary and not including the purchase price, 
                        incurred by the organization or agency in 
                        purchasing and assuming responsibilities for 
                        the housing and related facilities involved, 
                        which may include costs for pursuing 
                        acquisition, appraisals, financing fees, 
                        accounting, administration, consultants, legal 
                        assistance, architectural assistance, 
                        engineering assistance, application fees, 
                        overhead, and other expenses;''.
    (b) Equity Takeout Loans.--
            (1) Authority for section 514 housing.--Section 
        502(c)(4)(B)(iv) of the Housing Act of 1949 (42 U.S.C. 
        1472(c)(4)(B)(iv)) is amended by inserting before the semicolon 
        at the end the following: ``or under paragraphs (1) and (2) of 
        section 514(i)''.
            (2) Loan terms.--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) Equity Takeout Loans for Preservation of Low-Income 
Housing.--With respect to a loan insured under subsection (a), the 
Secretary may--
            ``(1) make or insure an equity loan in the form of a 
        supplemental loan for the purpose of equity takeout to the 
        owner of housing financed with a loan insured under this 
        section pursuant to a contract entered into before December 15, 
        1989, for the purpose of extending the affordability of the 
        housing for low-income families or persons and very low-income 
        families or persons for not less than 20 years, except that 
        such loan may not exceed 90 percent of the value of the equity 
        in the project as determined by the Secretary;
            ``(2) transfer and reamortize an existing loan in 
        connection with assistance provided under paragraph (1); and
            ``(3) make or insure a loan to enable a nonprofit 
        organization or public agency to make a purchase described in 
        section 502(c)(5).''.
            (3) Technical correction relating to section 515 housing.--
        Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 
        1485(c)(1)) is amended by striking ``December 21, 1979'' and 
        inserting ``December 15, 1989''.
    (c) Phase-In of Rent Increases.--Section 502(c)(4)(B)(vi) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(vi)) is amended by 
inserting before the period at the end the following: ``, except that 
any such increase in rents for current tenants (except for increases 
made necessary by increases in operating costs) shall (I) be phased in 
equally over a period of not less than 3 years, if such increase is 30 
percent or more, and (II) be limited to not more than 10 percent per 
year if such increase is more than 10 percent but less than 30 
percent''.
    (d) Treatment of Acceleration Upon Default.--Section 502 of the 
Housing Act of 1949 (42 U.S.C. 1472) is amended--
            (1) in subsection (b)(2), by inserting ``or any payment in 
        the case of acceleration of the amount due under such a loan 
        pursuant to any default,'' after ``515''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (B) in paragraph (1)(B), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (C) in paragraph (2)--
                            (i) by inserting after ``prepaid'' the 
                        following: ``, paid in full pursuant to 
                        acceleration of the amount due resulting from 
                        default,''; and
                            (ii) by inserting ``, payment,'' after 
                        ``prepayment'';
                    (D) in paragraph (4)(A), by inserting after 
                ``prepay,'' the following: ``accepting any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on,''; and
                    (E) in paragraph (5)--
                            (i) in subparagraph (A)(ii), by inserting 
                        after ``prepay,'' the following: ``accept the 
                        payment tendered in the case of acceleration of 
                        the amount due pursuant to default on,'';
                            (ii) in the 1st sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``accept payment tendered in the 
                        case of acceleration of the amount due pursuant 
                        to default on,'';
                            (iii) in the 2d sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``payment tendered in the case of 
                        acceleration of the amount due pursuant to 
                        default,'';
                            (iv) in the last sentence of subparagraph 
                        (F), by striking ``offers to prepay,'' and 
                        inserting the following: ``such offers to 
                        prepay, payments in the case of acceleration of 
                        the amount due pursuant to default,''; and
                            (v) in the matter in subparagraph (G) that 
                        precedes clause (i), by inserting after 
                        ``prepay,'' the following: ``any payment 
                        tendered in the case of acceleration of the 
                        amount due pursuant to default on,''.
    (e) Test for Allowable Prepayment.--Section 502(c)(5)(G)(ii) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(5)(G)(ii)) is amended to read as 
follows:
                            ``(ii) the Secretary makes a written 
                        finding that--
                                    ``(I) prepayment, payment in the 
                                case of acceleration, or refinancing 
                                will not materially increase economic 
                                hardship for current tenants;
                                    ``(II) involuntarily displace 
                                current tenants (except for good 
                                cause), where comparable and affordable 
                                housing is not readily available, 
                                determined without regard to the 
                                availability of Federal housing 
                                assistance that would address any such 
                                hardship or involuntary displacement; 
                                and
                                    ``(III) the supply of vacant, 
                                comparable housing is sufficient to 
                                ensure that such prepayment will not 
                                materially affect (a) the availability 
                                of decent, safe, and sanitary housing 
                                affordable to low-income and very low-
                                income families or persons in the area 
                                that the housing could reasonably be 
                                expected to serve, (b) the ability of 
                                low-income and very low-income families 
                                or persons to find affordable, decent, 
                                safe, and sanitary housing near 
                                employment opportunities, or (c) the 
                                housing opportunities of minorities in 
                                the community within which the housing 
                                is located.''.

SEC. 504. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF 
              ASSISTANCE.

    (a) Reauthorization.--Section 509(f)(4) of the Housing Act of 1949 
(42 U.S.C. 1479(f)(4)) is amended by striking ``fiscal years 1993 and 
1994'' and inserting ``each of fiscal years 1995 and 1996''.
    (b) 2-Year and 3-Year Designations.--Section 509(f) of the Housing 
Act of 1949 (42 U.S.C. 1479(f)) is amended--
            (1) in paragraph (1)--
                    (A) in the 1st sentence, by striking ``in each 
                fiscal year''; and
                    (B) in the 2d sentence, by striking ``year in'' and 
                inserting ``first year for'';
            (2) in paragraph (2)--
                    (A) in the first sentence, by striking ``paragraph 
                (4)'' and inserting ``paragraph (5)''; and
                    (B) by striking the last sentence;
            (3) in paragraph (3)(B), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (4) in paragraph (4)(A), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)'';
            (5) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively; and
            (6) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Timing and duration of designations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall redesignate the 
                targeted underserved areas under this subsection once 
                every 2 fiscal years and such designations shall remain 
                in effect for a period of 2 fiscal years. The first 
                such 2-year designation shall be made for fiscal years 
                1995 and 1996.
                    ``(B) Designations for indian areas.--The Secretary 
                shall ensure that, at all times, not less than 5 
                counties or communities that contain tribal allotted or 
                Indian trust land are included among the 100 counties 
                and communities designated as targeted underserved 
                areas. The Secretary shall redesignate the counties or 
                communities designated as a targeted underserved area 
                in compliance with this subparagraph once every 3 
                fiscal years and such designations shall remain in 
                effect for 3 fiscal years. The first such 3-year 
                designation shall be made for fiscal years 1995 through 
                1997. Upon designation, the Secretary shall specify any 
                targeted underserved area designated in compliance with 
                this subparagraph.''.

SEC. 505. ADMINISTRATIVE APPEALS.

    Section 510(g) of the Housing Act of 1949 (42 U.S.C. 1480(g)) is 
amended by inserting after ``adverse decision'' the following: 
``(including an eviction), on the record after opportunity for an 
agency hearing,''.

SEC. 506. SECTION 515 RURAL RENTAL HOUSING.

    (a) Set-Aside for Nonprofit Entities.--The first sentence of 
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is 
amended by striking ``fiscal years 1994 and 1995'' and inserting 
``fiscal years 1995 and 1996.''.
    (b) Authority for Sequential Transfers.--Section 515 of the Housing 
Act of 1949 (42 U.S.C. 1485) is amended by inserting after subsection 
(g) the following new subsection:
    ``(h) Authority for Sequential Transfers.--Notwithstanding any 
other provision of this title, in making or insuring a loan under 
subsection (a) or (b), the Secretary may approve the sequential 
transfer of the loan involving more than one new transferee entity, but 
only if the Secretary determines that such transfer would be in the 
best interests of the tenants of the housing for which the loan was 
made and of the Federal Government.''.
    (c) Authority for Streamlined Refinancing.--Section 515 of the 
Housing Act of 1949 (42 U.S.C. 1485) is amended by adding at the end 
the following new subsection:
    ``(z) Refinancing.--
            ``(1) Purpose and authority.--In order to reduce the amount 
        of debt service payments and operating costs of borrowers under 
        loans made or insured under this section, reduce rents paid by 
        residents of housing financed with such loans, and reduce the 
        amount of rental assistance necessary for such housing, the 
        Secretary may refinance the outstanding principal obligation of 
        a loan made under this subsection in accordance with the 
        provisions applicable (at the time of such refinancing) to 
        loans made under this section that the Secretary determines are 
        appropriate for purposes of this subsection and the terms and 
        conditions of the original loan.
            ``(2) Use of housing.--Any terms of the original loan 
        relating to use of the housing and related facilities for the 
        purposes specified in this section shall continue to apply to 
        the housing in the same manner as if the loan were not 
        refinanced under this subsection.
            ``(3) Treatment of refinancing under prepayment 
        restrictions.--Any loan refinanced under this subsection shall 
        be considered a loan originally made under this section, for 
        purposes of the limitations under subsection (c) on prepayment 
        and refinancing under subsection (b)(3). For purposes of 
        determining the financial status of the loan or the housing 
        securing the loan, the Secretary may consider the terms of the 
        refinancing.
            ``(4) Terms.--The Secretary shall, by regulation, establish 
        any requirements and conditions the Secretary considers 
        appropriate to provide for refinancing under this subsection, 
        including any limitations on term of the refinancing loan.
            ``(5) Expedited procedure.--The Secretary shall establish 
        an expedited procedure for providing refinancing under this 
        subsection, which--
                    ``(A) shall not require application under the same 
                procedures applicable to loans made under subsection 
                (a); and
                    ``(B) shall take into consideration any information 
                obtained by the Secretary in making and servicing the 
                loan under subsection (a) for which refinancing under 
                this subsection is requested.''.

SEC. 507. RENTAL ASSISTANCE PAYMENTS.

    (a) Optional Conversion to Operating Subsidy for Migrant Farmworker 
Projects.--
            ``(1) In general.--Section 521(a) of the Housing Act of 
        1949 (42 U.S.C. 1490a(a)) is amended by adding at the end the 
        following new paragraph:
    ``(5) Operating Assistance for Migrant Farmworker Projects.--
            ``(1) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or assisted with a 
        loan under section 514 or a grant under section 516, the 
        Secretary may, at the request of the owner of the project, use 
        amounts provided for rental assistance payments under paragraph 
        (2) to provide assistance for the costs of operating the 
        project. Any project assisted under this paragraph may not 
        receive rental assistance under paragraph (2).
            ``(2) Amount.--In any fiscal year, the assistance provided 
        under this paragraph for any project shall not exceed an amount 
        equal to 90 percent of the operating costs for the project for 
        the year, as determined by the Secretary. The amount of 
        assistance to be provided for a project under this paragraph 
        shall be an amount that makes units in the project available to 
        migrant farmworkers in the area of the project at rates 
        generally not exceeding 30 percent of the monthly adjusted 
        incomes of such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
            ``(3) Submission of information.--The owner of a project 
        assisted under this paragraph shall be required to provide to 
        the Secretary, at least annually, a budget of operating 
        expenses and estimated rental income, which the Secretary shall 
        use to determine the amount of assistance for the project.
            ``(4) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                    ``(A) The term `migrant farmworker' shall have the 
                same meaning given the term in section 516(k)(7).
                    ``(B) The term `operating cost' means expenses 
                incurred in operating a project, including expenses 
                for--
                            ``(i) administration, maintenance, repair, 
                        and security of the project;
                            ``(ii) utilities, fuel, furnishings, and 
                        equipment for the project; and
                            ``(iii) maintaining adequate reserve funds 
                        for the project.''.
            ``(2) Conforming amendments.--Title V of the Housing Act of 
        1949 (42 U.S.C. 1471 et seq.) is amended--
                    (A) in section 502--
                            (i) in subsection (c)(1)(A)(i), by striking 
                        ``or (a)(2)'' and inserting ``, (a)(2), or 
                        (5)'';
                            (ii) in subsection (c)(4)(B)(ii), by 
                        inserting before the period at the end the 
                        following: ``, or additional assistance or an 
                        increase in assistance provided under section 
                        521(a)(5)'';
                            (iii) in subsection (c)(4)(B)(iii), by 
                        inserting before the period at the end the 
                        following: ``, or current tenants of projects 
                        not assisted under section 521(a)(5)'';
                            (iv) in subsection (c)(5)(C)(iii)--
                                    (I) by striking the 2d comma; and
                                    (II) by inserting ``, or any 
                                assistance payments received under 
                                section 521(a)(5),'' before ``with 
                                respect'';
                            (v) in subsection (c)(5)(D), by inserting 
                        before the period at the end the following: 
                        ``or, in the case of housing assisted under 
                        section 521(a)(5), does not exceed the rents 
                        established for the project under such 
                        section'';
                    (B) in the second sentence of section 509(f)(5) (as 
                redesignated by the preceding provisions of this 
                title), by striking ``an amount of section 521 rental 
                assistance'' and inserting ``, from amounts available 
                for assistance under paragraphs (2) and (5) of section 
                521(a), an amount'';
                    (C) in section 513(c)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or contracts for operating 
                        assistance under section 521(a)(5)'' after 
                        ``521(a)(2)(A)'';
                            (ii) in subparagraph (A), by inserting ``or 
                        operating assistance contracts'' after 
                        ``contracts'';
                            (iii) in subparagraph (B), by striking 
                        ``rental'' each place it appears; and
                            (iv) in subparagraph (C), by inserting ``or 
                        operating assistance contracts'' after 
                        ``contracts'';
                    (D) in section 521(a)(2)(B)--
                            (i) by inserting ``or paragraph (5)'' after 
                        ``this paragraph''; and
                            (ii) by striking ``which shall'' and all 
                        that follows through the period at the end and 
                        inserting the following: ``. The budget (and 
                        the income, in the case of a project assisted 
                        under this paragraph) shall be used to 
                        determine the amount of the assistance for each 
                        project.'';
                    (E) in section 521(c), by striking ``subsection 
                (a)(2)'' and inserting ``subsections (a)(2) and 
                (a)(5)'';
                    (F) in section 521(e), by inserting after 
                ``recipient'' the following: ``or any tenant in a 
                project assisted under subsection (a)(5)''; and
                    (G) in section 530, by striking ``rental assistance 
                payments with respect to such project under section 
                521(a)(2)(A)'' an inserting ``assistance payments with 
                respect to such project under section 521(a)(2)(A) or 
                521(a)(5)''.
    (b) Set-Aside for New Construction.--Section 521 of the Housing Act 
of 1949 (42 U.S.C. 1490a) is amended by adding at the end the following 
new subsection:
    ``(f) Set-Aside of Rental Assistance Amounts for New 
Construction.--
            ``(1) Requirement.--In each fiscal year, of any amounts 
        appropriated for rental assistance payments under subsection 
        (a)(2)(A), the Secretary shall reserve for use only for rental 
        housing projects to be newly constructed or rehabilitated with 
        a loan under section 515 and a percentage of such amounts 
        appropriated that is not less than the average determined under 
        paragraph (2).
            ``(2) Determination of amount.--The average determined 
        under this paragraph shall be the annual average, for the most 
        recent 3 completed fiscal years, of the percentage of such 
        amounts appropriated for rental assistance payments assistance 
        that was made available for use for newly constructed or 
        rehabilitated rental housing projects provided with a loan 
        under section 515.''.

SEC. 508. RURAL HOUSING ASSISTANCE TARGETING REPORT.

    Section 532(a) of the Housing Act of 1949 (42 U.S.C. 1490l) is 
amended by adding at the end the following new flush material:
``The Secretary shall submit a report to the Congress for each fiscal 
year describing the geographical distribution of housing for which 
eligible loan applications for assistance under this title are 
submitted in such year and for which amounts are obligated in such 
year. The report shall describe the areas in which the housing to be 
assisted under the applications is located, the number of eligible 
applications received for housing in such areas, the number of eligible 
applications for housing in such areas that were approved and funded 
and the amounts of such funding, the extent of the rural character of 
such areas, and any actions taken by the Secretary to comply with the 
requirement under paragraph (3). The report for a fiscal year shall be 
submitted not later than 180 days after the conclusion of such fiscal 
year.''.

SEC. 509. PRIORITY FOR RURAL HOUSING VOUCHER ASSISTANCE.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following new subsection:
    ``(c) Priority.--
            ``(1) Requirement.--In providing assistance under this 
        section, the Secretary shall give preference to providing 
        assistance for rental housing that--
                    ``(A) is financed or assisted with a loan, 
                guarantee, insurance, or other assistance provided 
                under this title; and
                    ``(B)(i) has a significant number of units, as 
                determined by the Secretary, that have been vacant for 
                extended periods; or
                    ``(ii) is occupied by a significant number of 
                families, as determined by the Secretary, who pay as 
                rent for a unit in the housing an amount exceeding 30 
                percent of the family's monthly adjusted income.
            ``(2) Project-based assistance.--To provide assistance 
        according to the preference under paragraph (1), the Secretary 
        may enter into contracts with owners of housing described in 
        paragraph (1) to provide voucher assistance payments that are 
        attached to such housing on behalf of very low-income families 
        who reside in such housing.''.

SEC. 510. NATIVE AMERICAN RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM.

    Title V of the Housing Act of 1949 is amended by inserting after 
section 537 (42 U.S.C. 1490p-1) the following new section:

``SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM FOR NATIVE 
              AMERICANS AND ALASKAN NATIVES.

    ``(a) Authority.--The Secretary shall carry out a program under 
this section to demonstrate the effectiveness of assisting Native 
Americans and Alaskan Natives in underserved areas to apply for, 
obtain, and use housing assistance under this title.
    ``(b) Grants.--Under the demonstration under this section, the 
Secretary shall make grants to technical assistance providers selected 
under subsection (f) to carry out activities under subsection (c) with 
respect to tribes selected under subsection (e) (and members of the 
tribes) in the selected areas. Of the amounts provided to a technical 
assistance provider under a grant under this section, 40 percent shall 
be disbursed to the technical assistance provider in fiscal year 1995, 
30 percent shall be so disbursed in fiscal year 1996, and 30 percent 
shall be so disbursed in fiscal year 1997.
    ``(c) Use of Assistance.--
            ``(1) Eligible activities.--Any amounts provided to a 
        technical assistance provider under a grant under this section 
        shall be used by the technical assistance provider only--
                    ``(A) to train individuals for employment as local 
                project coordinators under paragraph (2), which shall 
                include training regarding the availability, 
                application for, and use of housing assistance under 
                this title with respect to tribes and members of 
                tribes;
                    ``(B) to provide ongoing technical assistance and 
                training to local project coordinators;
                    ``(C) to provide assistance to the tribes selected 
                under subsection (e) in the selected areas, or to 
                Native American or Alaskan Native housing organizations 
                serving such tribes, to employ local project 
                coordinators trained pursuant to subparagraph (A); and
                    ``(D) to establish a revolving fund to provide 
                loans to tribes and members of tribes for customary and 
                reasonable costs incurred in preparing and submitting 
                applications for housing assistance under this title to 
                be used in the selected areas (including costs of 
                credit reports), except that not more than $1,500 may 
                be provided for the purpose under this subparagraph to 
                any single tribe or Native American or Alaskan Native 
                housing organization.
            ``(2) Local project coordinator.--For purposes of this 
        section, a local project coordinator shall be an individual 
        who--
                    ``(A) is employed by a tribe selected under 
                subsection (e) in, or Native American or Alaskan Native 
                housing organization serving, the selected area;
                    ``(B) provides advice and assistance to the tribe 
                or the tribes served by the organization (and members 
                of such tribes), regarding the availability, 
                application for, and use of housing assistance under 
                this title;
                    ``(C) otherwise facilitates the use of such 
                assistance by the tribes and their members; and
                    ``(D) assists the tribes and their members in 
                obtaining loans from the revolving fund established 
                under paragraph (1)(D).
    ``(d) Tribal Contributions To Demonstration Program.--Each tribe 
selected under subsection (e) for participation in the demonstration 
program under this section shall enter into an agreement with the 
technical assistance provider to provide in-kind or financial 
assistance, in addition to amounts provided under this section, for 
activities under the demonstration program, in an amount determined by 
the tribe and the technical assistance provider. The assistance 
provided pursuant to such agreement may include assistance in the form 
of office space, equipment, transportation, salary enhancement, and 
fringe benefits, and other forms of assistance.
    ``(e) Selection of Tribes and Areas.--
            ``(1) Eligibility.--The Secretary shall provide for the 
        technical assistance providers receiving grants under this 
        section to select for participation in the demonstration under 
        this section not more than a total of 15 tribes--
                    ``(A) that are located in counties or communities--
                            ``(i) that are eligible for designation as 
                        targeted underserved areas under section 
                        509(f); or
                            ``(ii) that include tribal allotted or 
                        Indian trust land; and
                    ``(B) that--
                            ``(i) have agreed to participate in the 
                        demonstration under this section by designating 
                        individuals for training as local project 
                        coordinators under subsection (c); or
                            ``(ii) are located in a county or community 
                        within which is located a Native American or 
                        Alaskan Native housing organization that has so 
                        agreed to participate in the demonstration 
                        under this section.
            ``(2) Criteria for selection.--Each technical assistance 
        provider selecting tribes pursuant to paragraph (1) shall make 
        such selections according to criteria that include--
                    ``(A) the extent of substandard housing on the 
                reservation of the tribe;
                    ``(B) the extent of the waiting list for housing 
                assistance under Federal housing programs in the 
                community or community under paragraph (1)(A);
                    ``(C) the extent of interest in and willingness to 
                participate in the demonstration program under this 
                section for a 3-year period; and
                    ``(D) the extent of willingness to provide in-kind 
                or financial assistance in addition to amounts provided 
                under this section for activities under the 
                demonstration program.
            ``(3) Treatment as targeted underserved areas.--
        Notwithstanding the designation of counties and communities as 
        targeted underserved areas under section 509(f)(1) and the 
        provisions of section 520, any selected area under this section 
        shall be considered a targeted underserved area for fiscal 
        years 1995, 1996, and 1997, for purposes of eligibility for 
        assistance with amounts reserved under section 509(f)(4)(A).
    ``(f) Selection of Technical Assistance Providers.--
            ``(1) Eligibility.--The Secretary may make a grant under 
        this section only to a nonprofit organization having experience 
        in providing training and technical assistance regarding the 
        use of housing assistance under this title and in administering 
        revolving loan funds for costs relating to housing assistance 
        programs under this title.
            ``(2) Application.--The Secretary shall provide for 
        nonprofit organizations meeting the requirements under 
        paragraph (1) to submit applications for a grant under this 
        section during a period of not more than 45 days that begins 
        upon publication of the notice of funding availability under 
        subsection (i).
            ``(3) Selection.--Not more than 30 days after expiration of 
        such period, the Secretary shall select, to receive grants 
        under this section, 1 or more nonprofit organizations 
        submitting applications that are--
                    ``(A) capable of carrying out the duties of 
                technical assistance providers under this section; and
                    ``(B) knowledgeable and experienced regarding 
                housing needs and issues of Native Americans and 
                Alaskan Natives and housing assistance programs under 
                this title; and
                    ``(C) agree to comply with the provisions of this 
                section.
    ``(g) Reports.--
            ``(1) Local project coordinators.--Each local project 
        coordinator trained or assisted by a technical assistance 
        provider with amounts from a grant under this section shall 
        submit a report to the technical assistance provider for each 
        of fiscal years 1995 through 1997, regarding the activities of 
        the coordinator. The report shall be submitted not later than 
        30 days after the conclusion of the fiscal year for which the 
        report is made.
            ``(2) Technical assistance providers.--Each technical 
        assistance provider receiving a grant under this section shall 
        submit a report to the Secretary for each of fiscal years 1995 
        through 1997, summarizing the information submitted under 
        paragraph (1) for the fiscal year and describing the activities 
        of the technical assistance provider under the demonstration 
        under this section during the fiscal year. The report shall be 
        submitted not later than 60 days after the conclusion of the 
        fiscal year for which the report is made.
            ``(3) Secretary.--The Secretary shall submit a report to 
        the Congress for each of fiscal years 1995 through 1997 
        describing the demonstration under this section and the 
        findings of the Secretary as a result of the demonstration. The 
        report shall be submitted not later than 90 days after the 
        conclusion of the fiscal year for which the report is made.
    ``(h) Definitions.--For purposes of this section:
            ``(1) Alaskan native village.--The term `Alaskan Native 
        Village' has the same meaning given the term `Native village' 
        in section 3 of the Alaska Native Claims Settlement Act.
            ``(2) Native american or alaskan native housing 
        organization.--The term `Native American or Alaskan Native 
        housing organization' means a nonprofit organization that 
        primarily serves a tribe or tribes, and includes Indian housing 
        authorities and other housing entities of a tribe.
            ``(3) Nonprofit organization.--The term `nonprofit 
        organization' means any private, nonprofit organization that--
                    ``(A) is organized or chartered under State, 
                tribal, or local laws;
                    ``(B) has no part of its net earning inuring to the 
                benefit of any member, founder, contributor, or 
                individual;
                    ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    ``(D) through its articles of incorporation or 
                through resolution of the governing body of a tribe, 
                has among its purposes significant activities related 
                to the provision of decent housing that is affordable 
                to low- and moderate-income families.
            ``(4) Selected area.--The term `selected area' means, with 
        respect to any tribe selected under subsection (e), the county 
        or community meeting the requirements of subsection (e)(1) in 
        which the tribe selected is located.
            ``(5) Technical assistance provider.--The term `technical 
        assistance provider' means a nonprofit organization that is 
        selected under subsection (f) to receive a grant under this 
        section.
            ``(6) Tribe.--The term `tribe' means any Indian tribe, 
        band, group, or nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        that is considered an eligible recipient under the Indian Self-
        Determination and Education Assistance Act or was considered an 
        eligible recipient under chapter 67 of title 31, prior to the 
        repeal of such chapter.
    ``(i) Notice of Funding Availability.--
            ``(1) Publication.--The Secretary shall cause to be 
        published in the Federal Register notice of the availability of 
        any amounts made available for grants under this section. Such 
        notice shall be published not later than the expiration of the 
        90-day period beginning on the date that amounts are 
        appropriated to carry out this section.
            ``(2) Contents.--The notice referred to in paragraph (1) 
        shall--
                    ``(A) describe the requirements for eligibility to 
                receive a grant, the purposes of the grant, and the 
                permissible uses of grant amounts;
                    ``(B) contain an address to which requests for 
                additional information regarding the demonstration 
                under this section may be made; and
                    ``(C) state the deadline established by the 
                Secretary pursuant to section (f)(2) for the submission 
                of applications for a grant.''.

SEC. 511. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by inserting after section 538 (as added by the preceding 
provisions of this title) the following new section:

``SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    ``(a) In General.--The Secretary is authorized to provide 
assistance to develop the capacity and ability of community development 
corporations, community housing development organizations, and other 
nonprofit organizations to undertake community development and 
affordable housing projects and programs in rural areas.
    ``(b) Form of Assistance.--Assistance under this section may be 
used for--
            ``(1) training, education, support, and advice to enhance 
        the technical and administrative capabilities of community 
        development corporations, community housing development 
        organizations, and nonprofit organizations in rural areas;
            ``(2) loans, grants, or predevelopment assistance to 
        community development corporations, community housing 
        development organizations, and nonprofit organizations to carry 
        out community development and affordable housing activities 
        that benefit low-income families in rural areas; and
            ``(3) such other activities for rural areas as may be 
        determined by the Secretary.
    ``(c) Matching Requirement.--Assistance provided under this section 
shall be matched from private sources in an amount equal to 3 times the 
amount made available under this section.
    ``(d) Implementation.--The Secretary shall by notice establish such 
requirements as may be necessary to carry out the provisions of this 
section. The notice shall take effect upon issuance.''.

SEC. 512. RURAL HOUSING LOAN DELEGATED PROCESSING DEMONSTRATION.

    (a) Authority.--Not later than the expiration of the 180-day period 
beginning on the date of enactment of this Act, the Secretary of 
Agriculture shall implement a system for making, processing, and 
servicing loans under section 502 of the Housing Act of 1949 that 
delegates such functions to nonprofit organizations approved by the 
Secretary of Agriculture. Under the system, the Secretary shall retain 
the authority to approve loan amounts and interest credit agreements 
and to execute binding loan commitments and credit agreements.
    (b) Use in Targeted Underserved Areas.--The Secretary of 
Agriculture shall carry out the delegated processing system under 
subsection (a) only with respect to loans for housing located in, and 
amounts reserved for use in, areas for which a designation under 
section 509(f) is in effect.
    (c) Report.--The Secretary of Agriculture shall submit an interim 
report to the Congress not later than 12 months after the date of the 
initial implementation of the delegated processing system under this 
section describing the activities taken under the system and evaluating 
the effectiveness of the system.
    (d) Termination of Authority.--The Secretary of Agriculture may not 
carry out the delegated processing system under this section after 
September 30, 1996.

                    TITLE VI--COMMUNITY DEVELOPMENT

         Subtitle A--Community Development Block Grant Program

SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND GUARANTEE AUTHORITY.

    (a) Community Development Block Grants.--The second sentence of 
section 103 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5303) is amended to read as follows: ``For purposes of 
assistance under section 106, there are authorized to be appropriated 
$4,532,000,000 for fiscal year 1995 and $4,667,960,000 for fiscal year 
1996.''.
    (b) Limitation on Loan Guarantees.--The fifth sentence of section 
108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308(a)) is amended to read as follows: ``Notwithstanding any other 
provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
section, to the extent approved or provided in appropriation Acts, the 
Secretary shall enter into commitments to guarantee notes and 
obligations under this section with an aggregate principal amount of 
$2,115,620,000 for fiscal year 1995 and $2,179,088,600 for fiscal year 
1996.''.
    (c) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)) is amended--
            (1) by striking ``Sec. 107'' and all that follows through 
        the end of paragraph (1) and inserting the following:
    ``Sec. 107. (a) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        for each of fiscal years 1995 and 1996, $60,000,000, for grants 
        under subsection (b). Of such amounts--
                    ``(A) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(1);
                    ``(B) $6,500,000 shall be available in each such 
                year for grants under subsection (b)(3);
                    ``(C) $6,000,000 shall be available in each such 
                year for grants in each such year under subsection 
                (b)(5);
                    ``(D) $6,000,000 shall be available in each such 
                year for grants under subsection (b)(7);
                    ``(E) $3,000,000 shall be available in each such 
                year for grants under subsection (c);
                    ``(F) such sums as may be necessary shall be 
                available in each such year for grants under paragraphs 
                (2), (4), and (6) of subsection (b); and
                    ``(G) $2,000,000 shall be available in fiscal year 
                1995 for a grant to the City of Bridgeport, 
                Connecticut, subject to binding commitments made by the 
                City of Bridgeport and the State of Connecticut that 
                the city and State, respectively, will supplement such 
                amount with $2,000,000 of additional funds.''.
    (d) Eligible Activities.--Section 105(a)(8) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by 
striking ``fiscal year 1994'' and inserting ``each of fiscal years 1994 
and 1995''.

SEC. 602. ECONOMIC DEVELOPMENT GRANTS.

    (a) Grant Program.--Section 108 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the 
end the following new subsection:
    ``(q) Economic Development Grants Using Recovered UDAG Amounts.--
            ``(1) Authority.--The Secretary may, to the extent provided 
        in appropriation Acts, use any amounts made available for 
        assistance under section 119 and subsequently deobligated to 
        make grants under this subsection to eligible public entities, 
        in connection with notes or other obligations guaranteed under 
        this section for such entities, for carrying out economic 
        development activities.
            ``(2) Use for economic development activities.--The 
        proceeds of the guaranteed loan under this section and the 
        grant under this subsection in connection with such loan shall 
        be used only to finance activities and projects eligible under 
        subsection (a)(3) and specified in an application submitted and 
        approved under paragraph (3) by the Secretary.
            ``(3) Application.--The Secretary may make grants under 
        this subsection to an eligible public entity only pursuant to 
        the receipt of an application by the Secretary from the entity 
        and approval of the application by the Secretary. The Secretary 
        shall prescribe the form and manner of such applications and 
        shall require such applications to be submitted with or as part 
        of an application for loan guarantee assistance under this 
        section.
            ``(4) First-come-first-served.--The Secretary shall use 
        amounts available for grants under this section to make such 
        grants for approved applications in the order in which such 
        approved applications were submitted to the Secretary.
            ``(5) Regulations.--The Secretary shall issue any 
        regulations necessary to carry out this subsection.''.
    (b) Use of UDAG Amounts.--Section 119(o) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5318(o) is amended by 
striking ``shall be'' and all that follows through ``section 103'' and 
inserting the following: ``shall, as determined by the Secretary, be 
added to amounts appropriated under section 103 or be used for grants 
under section 108(q)''.
    (c) CDBG Objectives and Plan.--Title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended--
            (A) in the second sentence of section 101(c), by inserting 
        after ``section 108,'' the following: ``(and any grant received 
        under section 108(q))''; and
            (B) in section 104(b)(3)(A), by inserting after ``section 
        108,'' the following: ``(and any grant received under section 
        108(q))''.
    (d) Requirements for Guarantees.--The second sentence of section 
108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308(a)) is amended to read as follows: ``A guarantee under this 
section (including a guarantee combined with a grant under subsection 
(q)) may be used to assist a grantee in obtaining financing only if the 
grantee has made efforts to obtain the financing without the use of the 
guarantee (and, if applicable, the grant) and cannot complete the 
financing consistent with the timely execution of the proposed 
activities and projects without the guarantee (or, if applicable, the 
grant).''.

SEC. 603. GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS.

    Section 108 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308) is amended by adding after subsection (q) (as added by 
the preceding provisions of this title) the following new subsection:
    ``(r) Guarantee of Obligations Backed by Loans.--
            ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary considers appropriate, guarantee 
        the timely payment of the principal of and interest on such 
        trust certificates or other obligations as may--
                    ``(A) be offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) be based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
            ``(2) Full faith and credit.--To the same extent as 
        provided in subsection (f), the full faith and credit of the 
        United States is pledged to the payment of all amounts that may 
        be required to be paid under any guarantee made by the 
        Secretary under this subsection.
            ``(3) Subrogation.--If the Secretary pays a claim under a 
        guarantee made under this section, it shall be subrogated fully 
        to the rights satisfied by such payment.
            ``(4) Effect of laws.--No State or local law, and no 
        Federal law, shall preclude or limit the exercise by the 
        Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce any such contract by any 
                means deemed appropriate by the Secretary; and
                    ``(C) any ownership rights of the Secretary, as 
                applicable, in notes, certificates, or other 
                obligations guaranteed under this section, or 
                constituting the trust or pool against which trust 
                certificates, or other obligations guaranteed under 
                this section, are offered.''.

SEC. 604. SECTION 108 LOAN GUARANTEES FOR COLONIAS.

    The first sentence of section 108(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308(a)) is amended--
            (1) in clause (3), by striking ``or'' after ``section 
        105(a);''; and
            (2) by inserting before the period at the end the 
        following: ''; or (5) activities under section 105(a)(2) with 
        respect to colonias, as such term is defined in section 916 of 
        the Cranston-Gonzalez National Affordable Housing Act''.

SEC. 605. ASSISTANCE FOR COLONIAS.

    Section 916(f) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 5306 note) is amended to read as follows:
    ``(f) Applicability.--This Act shall apply only with respect to 
fiscal years 1991 through 1996.''.

            Subtitle B--Other Community Development Programs

SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

    The first sentence of section 608(a)(1) of the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8107(a)) is amended to read as 
follows: ``There are authorized to be appropriated to the corporation 
to carry out this title $32,960,000 for fiscal year 1995 and 
$33,948,800 for fiscal year 1996.''.

SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM.

    (a) Authorization.--Section 123(g) of the Housing and Urban-Rural 
Recovery Act of 1983 (42 U.S.C. 5318 note) is amended to read as 
follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for fiscal year 1995 
and $5,150,000 for fiscal year 1996.''.

            TITLE VII--REGULATORY AND MISCELLANEOUS PROGRAMS

SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

    Section 561(g) of the Housing and Community Development Act of 1987 
(42 U.S.C. 3616 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the provisions of this section $26,780,000 
for fiscal year 1995 and $27,583,400 for fiscal year 1996, of which--
            ``(1) not less than $3,820,000 for fiscal year 1995 and 
        $8,500,000 for fiscal year 1996 shall be for private 
        enforcement initiatives authorized under subsection (b), 
        divided equally between activities specified under subsection 
        (b)(1) and those specified under subsection (b)(2);
            ``(2) not less than $2,230,000 for fiscal year 1995 and 
        $8,500,000 for fiscal year 1996 shall be for qualified fair 
        housing enforcement organizations authorized under subsection 
        (c)(1);
            ``(3) not less than $2,010,000 for fiscal year 1995 and 
        $4,000,000 for fiscal year 1996 shall be for the creation of 
        new fair housing enforcement organizations authorized under 
        subsection (c)(2); and
            ``(4) not less than $2,540,000 for fiscal year 1995 and 
        $5,000,000 for fiscal year 1996 shall be for education and 
        outreach programs authorized under subsection (d), to be 
        divided equally between activities specified under subsection 
        (d)(1) and those specified under subsections (d)(2) and (d)(3).
Any amount appropriated under this section shall remain available until 
expended.''.

SEC. 702. HUD PROGRAM MONITORING AND RESEARCH.

    The first sentence of section 7(r)(6) of the Department of Housing 
and Urban Development Act (42 U.S.C. 3535(r)(6)) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
subsection such sums as may be necessary for fiscal years 1995 and 
1996.''.

SEC. 703. HUD SALARIES AND EXPENSES.

    Section 7(s) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(s)) is amended to read as follows:
    ``(s)(1) Notwithstanding any other provision of law, there is 
authorized to be appropriated for salaries and expenses to carry out 
the purposes of this section $1,150,000,000 for fiscal year 1995 and 
$1,184,500,000 for fiscal year 1996.
    ``(2) Of the amounts authorized to be appropriated by this section, 
$96,000,000 shall be available for each of the fiscal years 1995 and 
1996, which amounts shall be used to provide staff in regional, field, 
or zone offices of the Department of Housing and Urban Development to 
review, process, approve, and service applications for mortgage 
insurance under title II of the National Housing Act for housing 
consisting of 5 or more dwelling units.
    ``(3) Of the amounts authorized to be appropriated to carry out 
this section, not less than $5,000,000 of such amount shall be 
available for each of fiscal years 1995 and 1996 exclusively for the 
purposes of providing ongoing training and capacity building for 
Department personnel.''.

SEC. 704. SUBSIDY LAYERING REVIEW.

    Section 911 of the Housing and Community Development Act of 1992 
(42 U.S.C. 3545 note) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Certification of Subsidy Layering Compliance.--The 
requirements of section 102(d) of the Department of Housing and Urban 
Development Reform Act of 1989 may be satisfied in connection with a 
project receiving assistance under a program that is within the 
jurisdiction of the Department of Housing and Urban Development and 
under section 42 of the Internal Revenue Code of 1986 by a 
certification by a housing credit agency to the Secretary, submitted in 
accordance with guidelines established by the Secretary, that the 
combination of assistance within the jurisdiction of the Secretary and 
other government assistance provided in connection with a property for 
which assistance is to be provided within the jurisdiction of the 
Department of Housing and Urban Development and under section 42 of the 
Internal Revenue Code of 1986 shall not be any greater than is 
necessary to provide affordable housing.''; and
            (2) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Revocation by Secretary.--If the Secretary determines that a 
housing credit agency has failed to comply with the guidelines 
established under subsection (a), the Secretary--
            ``(1) may inform the housing credit agency that the agency 
        may no longer submit certification of subsidy layering 
        compliance under this section; and
            ``(2) shall carry out section 102(d) of the Housing and 
        Urban Development Reform Act relating to affected projects 
        allocated a low-income housing tax credit pursuant to section 
        42 of the Internal Revenue Code of 1986.''.

SEC. 705. HUD RESEARCH AND DEVELOPMENT.

    The second sentence of section 501 of the Housing and Urban 
Development Act of 1970 (12 U.S.C. 1701z-1) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
title $36,050,000 for fiscal year 1995 and $37,131,500 for fiscal year 
1996.''.

SEC. 706. NATIONAL INSTITUTE OF BUILDING SCIENCES.

    The second sentence of section 809(i) of the Housing and Community 
Development Act of 1974 (12 U.S.C. 1701j-2(i)) is amended to read as 
follows: ``In addition to the amounts authorized to be appropriated 
under the first sentence of this subsection, there are authorized to be 
appropriated to the Institute to carry out the provisions of this 
section $2,000,000 for fiscal year 1995 and $2,000,000 for fiscal year 
1996.''.

SEC. 707. RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION.

    (a) Target Housing Hazard Reduction.--
            (1) Authorization of appropriations.--Section 1011(o) of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        4852(o)) is amended to read as follows:
    ``(o) Authorization of Appropriations.--For the purposes of 
carrying out this Act, there are authorized to be appropriated 
$257,500,000 for fiscal year 1995 and $265,225,000 for fiscal year 
1996.''.
            (2) Technical assistance and capacity building.--Section 
        1011(g) of the Housing and Community Development Act of 1992 
        (42 U.S.C. 4852(g)) is amended--
                    (A) in the second sentence of paragraph (1), by 
                striking ``In fiscal years 1993 and 1994'' and 
                inserting the following: ``In fiscal years 1995 and 
                1996''; and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Set-aside.--Of the total amount approved in 
        appropriation Acts under subsection (o), there shall be set 
        aside to carry out this subsection $3,000,000 for fiscal year 
        1995 and $3,000,000 for fiscal year 1996.''.
    (b) HUD Research.--Section 1053 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 4854b) is amended to read as 
follows:

``SEC. 1053. FUNDING.

    ``Of the total amount approved in appropriation Acts under section 
1011(o), there shall be set aside to carry out this part $5,000,000 for 
fiscal year 1995 and $5,000,000 for fiscal year 1996.''.

SEC. 708. NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS 
              ANGELES.

    (a) Insurance Authority.--The first sentence of section 1104(d) of 
the Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) 
is amended to read as follows: ``To the extent provided in 
appropriation Acts, the Secretary shall use any authority provided 
pursuant to section 531(b) of the National Housing Act to enter into 
commitments to insure loans and mortgages under this section in fiscal 
years 1995 and 1996 with an aggregate principal amount not exceeding 
such sums as may be necessary to carry out the demonstration under this 
title.''.
    (b) Second Mortgage Assistance.--Section 1105(e) of the Housing and 
Community Development Act of 1992 (42 U.S.C. 5318 note) is amended to 
read as follows:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for providing assistance under this section.''.
    (c) Community Development Assistance.--Section 1106(h) of the 
Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) is 
amended to read as follows:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for assistance under this section.''.

SEC. 709. SOLAR ASSISTANCE FINANCING ENTITY.

    The first sentence of section 912(h) of the Housing and Community 
Development Act of 1992 (42 U.S.C. 5511a(h)) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
section $10,732,600 for fiscal year 1995 and $11,054,578 for fiscal 
year 1996.''.

SEC. 710. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

    There is authorized to be appropriated for assistance for the 
National American Indian Housing Council $1,000,000 for fiscal year 
1995 and $1,030,000 for fiscal year 1996, for providing training and 
technical assistance to Indian Housing Authorities.

SEC. 711. HOUSING ASSISTANCE COUNCIL.

    There is authorized to be appropriated for assistance for the 
Housing Assistance Council $5,000,000 for fiscal year 1995 and 
$5,150,000 for fiscal year 1996, for providing training, technical 
assistance, and financial assistance to develop affordable housing in 
rural areas.

    TITLE VIII--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS 
                             ASSISTANCE ACT

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Housing Assistance Amendments Act of 1994''.

                     Subtitle A--Housing Assistance

SEC. 811. EMERGENCY SHELTER GRANTS PROGRAM.

    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 $150,000,000 for fiscal year 1995 and $154,500,000 for fiscal 
year 1996.''.

SEC. 812. SUPPORTIVE HOUSING PROGRAM.

    Section 429(a) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11389(a)) is amended to read as follows:
    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle $344,020,000 for fiscal year 
1995 and $354,340,600 for fiscal year 1996.''.

SEC. 813. SAFE HAVENS FOR HOMELESS INDIVIDUALS DEMONSTRATION PROGRAM.

    Section 439 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11399) is amended to read as follows:

``SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $66,542,120 for fiscal year 1995 and $68,538,384 for fiscal 
year 1996.''.

SEC. 814. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

    Section 441(a) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11401(a)) is amended to read as follows:
    ``(a) Increase in Budget Authority.--The budget authority available 
under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(e)(2) of such Act (as in effect immediately 
before October 1, 1991) is authorized to be increased by $200,000,000 
on or after October 1, 1994, and by $206,000,000 on or after October 1, 
1995.''.

SEC. 815. SHELTER PLUS CARE PROGRAM.

    The first sentence of section 463(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11403h(a)) is amended to read as 
follows: ``For purposes of the housing programs under this subtitle, 
there are authorized to be appropriated $150,000,000 for fiscal year 
1995 and $154,500,000 for fiscal year 1996.''.

SEC. 816. RURAL HOMELESSNESS GRANT PROGRAM.

    Section 491(l)(1) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11408(l)(1)) is amended to read as follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $32,197,800 for fiscal year 1995 and 
        $33,163,734 for fiscal year 1996.''.

SEC. 817. STRATEGY TO ELIMINATE UNFIT TRANSIENT FACILITIES.

    The first sentence of section 825(a) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 11301 note) is amended by 
striking ``July 1, 1994'' and inserting ``July 1, 1996''.

SEC. 818. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM.

    (a) Program Extension.--Section 2(g) of the HUD Demonstration Act 
of 1993 (42 U.S.C. 11301 note) is amended by striking ``October 1, 
1994'' and inserting ``October 1, 1996''.
    (b) Authorization of Appropriations.--The first sentence of section 
2(f) of the HUD Demonstration Act of 1993 (42 U.S.C. 11301 note) is 
amended to read as follows: ``There are authorized to be appropriated 
to carry out this section $206,000,000 for fiscal year 1995 and 
$212,180,000 for fiscal year 1996.''.

            Subtitle B--Interagency Council on the Homeless

SEC. 831. 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 
$1,609,890 for fiscal year 1995 and $1,658,187 for fiscal year 1996.''.

SEC. 832. EXTENSION.

    Section 209 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11319) is amended by striking ``October 1, 1994'' and inserting 
``October 1, 1996''.

   Subtitle C--Federal Emergency Management Food and Shelter Program

SEC. 851. 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 
$193,186,800 for fiscal year 1995 and $198,982,404 for fiscal year 
1996.''.

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