[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3888 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3888

To amend the United States Housing Act of 1937 to improve the programs 
         for public and Indian housing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 1994

 Mrs. Roukema introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the United States Housing Act of 1937 to improve the programs 
         for public and Indian housing, 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.

    This Act may be cited as the ``Public and Indian Housing Amendments 
of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
                 TITLE I--ENHANCED PROGRAM FLEXIBILITY

Sec. 101. Revitalization of severely distressed public housing.
Sec. 102. Public housing design and cost flexibility.
Sec. 103. HOPE homeownership programs.
Sec. 104. Disallowances of earned income for residents who obtain 
                            employment.
Sec. 105. Ceiling rents based on reasonable rental value.
Sec. 106. Resident management program.
                TITLE II--TECHNICAL AND OTHER AMENDMENTS

Sec. 201. Correction to definition of ``family''.
Sec. 202. Repeal of limitation on income adjustments.
Sec. 203. Identification of CIAP replacement needs.
Sec. 204. Applicability of public housing amendments to Indian housing.
Sec. 205. Project-based accounting.
Sec. 206. Operating subsidy adjustments for anticipated fraud 
                            recoveries.
Sec. 207. Labor standards for construction contracts under United 
                            States Housing Act of 1937.
Sec. 208. Technical assistance for lead hazard reduction grantees.
Sec. 209. Environmental review in connection with grants for lead-based 
                            paint hazard reduction.
Sec. 210. Fire safety in federally assisted housing.
Sec. 211. Changes to payment in lieu of taxes.

                 TITLE I--ENHANCED PROGRAM FLEXIBILITY

SEC. 101. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) Repeal of Designation of Eligible Projects.--Subsection (b) of 
section 24 of the United States Housing Act of 1937 (42 U.S.C. 
1437v(b)) is hereby repealed.
    (b) Planning Grants.--Subsection (c) of section 24 of the United 
States Housing Act of 1937 is amended--
            (1) in paragraph (2) by striking ``$200,000'' and inserting 
        ``$300,000'';
            (2) by striking paragraph (3) and inserting the following 
        new paragraph:
            ``(3) Eligible activities.--A planning grant under this 
        subsection may be used for activities to develop revitalization 
        programs for severely distressed public housing, including--
                    ``(A) obtaining studies, training, and technical 
                assistance relating to different options for 
                revitalization, including redesign, reconstruction, 
                conversion, demolition, disposition, and replacement 
                and including the feasibility, costs, and impact on the 
                neighborhood of such options;
                    ``(B) grants to qualified resident organizations to 
                ensure resident involvement in all phases of the 
                planning and implementation processes;
                    ``(C) improvements to stabilize the development, 
                including security;
                    ``(D) conducting workshops and surveys to ascertain 
                the attitudes and concerns of the neighboring community 
                and the need for physical improvements in the 
                neighborhood;
                    ``(E) planning for community service and support 
                service activities to be carried out by the public 
                housing agency, the residents, other members of the 
                community, and other persons and organizations willing 
                to contribute to the social, economic, or physical 
                improvement of the community;
                    ``(F) preliminary architectural and engineering 
                work;
                    ``(G) planning for economic development, youth 
                corps, job training, and self-sufficiency activities 
                that promote the economic self-sufficiency of residents 
                under the revitalization program;
                    ``(H) designing suitable relocation and replacement 
                housing plans, in situations where partial or total 
                demolition is considered;
                    ``(I) planning for necessary management 
                improvements; and
                    ``(J) preparation of an application for an 
                implementation grant under this section.'';
            (3) in paragraph (4)--
                    (A) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (B) by striking subparagraphs (C) and (D) and 
                inserting the following new subparagraphs:
                    ``(C) identification and description of the public 
                housing project involved, including its major physical, 
                management, and social needs, and a general description 
                of the resident population of the project, including 
                family sizes and incomes;
                    ``(D) a description of the planning activities for 
                community service and support services to be carried 
                out by the public housing agency, the residents, other 
                members of the community, and other persons and 
                organizations willing to contribute to the social, 
                economic, or physical improvement of the community;
                    ``(E) a certification by the public housing agency 
                that the application has been submitted to the public 
                official responsible under section 105 of the Cranston-
                Gonzalez National Affordable Housing Act for submitting 
                the comprehensive housing affordability strategy for 
                the participating jurisdiction in which the project is 
                located; and''; and
            (4) in paragraph (5)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``, by regulation, establish'' and inserting 
                ``establish, by notice published in the Federal 
                Register,'';
                    (B) by striking subparagraph (A) and inserting the 
                following new subparagraph:
                    ``(A) the capabilities of the applicant and of any 
                entities associated with the applicant in carrying out 
                the revitalization program;'';
                    (C) in subparagraph (B), by inserting ``proposed 
                resident'' after ``interest and'';
                    (D) in subparagraph (C), by inserting ``proposed'' 
                after ``extent of'';
                    (E) by striking subparagraph (E); and
                    (F) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively.
    (c) Implementation Grants.--Subsection (d) of section 24 of the 
United States Housing Act of 1937 is amended--
            (1) in paragraph (1), by adding at the end the following 
        new sentence: ``Each applicant that receives an implementation 
        grant under this section for revitalization of a severely 
        distressed public housing project shall carry out community 
        service and support service activities relating to the project 
        as part of the revitalization program.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``or 
                redevelopment'' and inserting ``conversion, demolition, 
                or disposition'';
                    (B) in subparagraph (F), by inserting ``, job 
                training, youth corps, and other'' after ``economic 
                development'';
                    (C) in subparagraph (H), by striking ``transitional 
                security activities'' and inserting ``security'';
                    (D) by striking subparagraph (I) and inserting the 
                following new subparagraph:
                    ``(K) support services, 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.'';
                    (E) by redesignating subparagraphs (E) through (H) 
                (as so amended) as subparagraphs (G) through (J), 
                respectively; and
                    (F) by inserting after subparagraph (D) the 
                following new subparagraphs:
                    ``(E) community service and support service 
                activities to be carried out by the public housing 
                agency, the residents, other members of the community, 
                and other persons and organizations willing to 
                contribute to the social, economic, or physical 
                improvement of the community;
                    ``(F) replacement of public housing units through 
                development of replacement units by the methods 
                permitted under subsection (d)(3), other than paragraph 
                (3)(B)(i) of such subsection;'';
            (3) in paragraph (3)--
                    (A) in subparagraph (B), by inserting after 
                ``applicant'' the following: ``and any other entities 
                to be involved in implementing activities funded with 
                amounts from the grant'';
                    (B) in subparagraph (C), by striking 
                ``composition'' and all that follows through ``income'' 
                and inserting the following: ``resident population, 
                including family sizes, incomes, and needs, together 
                with an analysis of the relationship of the 
                implementation plan to such needs'';
                    (C) in subparagraph (D), by striking ``consistent'' 
                and inserting ``not inconsistent'';
                    (D) by redesignating subparagraphs (D) (as so 
                amended) and (E) as subparagraphs (E) and (F), 
                respectively; and
                    (E) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) a description of the community service and 
                support service activities to be carried out by the 
                public housing agency, the residents, other members of 
                the community, and other persons and organizations 
                willing to contribute to the social, economic, or 
                physical improvement of the community;''; and
            (4) in paragraph (4)--
                    (A) in subparagraph (A), by inserting before the 
                semicolon at the end the following: ``and any other 
                entities to be involved in implementing activities 
                funded with amounts from the grant'';
                    (B) by striking subparagraphs (D) and (E) and 
                inserting the following new subparagraph:
                    ``(D) the quality of the proposed revitalization 
                program and the suitability of the project for such a 
                program;''; and
                    (C) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively.
    (d) Exceptions to General Program Requirements.--Subsection (e) of 
section 24 of the United States Housing Act of 1937 is amended--
            (1) in paragraph (1)--
                    (A) by striking ``this title'' and inserting ``this 
                Act''; and
                    (B) by striking ``permit'' and inserting 
                ``enable'';
            (2) by striking the first sentence of paragraph (2) and 
        inserting the following new sentence: ``For projects 
        revitalized under this section, a public housing agency may--
                    ``(A) in lieu of selecting tenants pursuant to the 
                preferences specified under section 6(c)(4)(A)(i), 
                select tenants pursuant to a local system of 
                preferences;
                    ``(B) in making dwelling units in such projects 
                available for occupancy, disregard the order in which 
                applications were made for residency in public housing 
                dwelling units or any waiting lists established for 
                such residency to provide for substantial variation in 
                the incomes of families residing in the project, 
                subject to the provisions of this Act relating to 
                income eligibility in public housing projects (as 
                modified under subparagraph (C));
                    ``(C) notwithstanding section 16 of this Act, 
                provide for low-income families to occupy not more than 
                50 percent of the dwelling units in a project, and
                    ``(D) establish ceiling rents under section 
                3(a)(2)(A).''; and
            (3) by adding at the end the following new paragraphs:
            ``(3) Replacement units.--
                    ``(A) Exception to section 18.--Notwithstanding the 
                provisions of section 18(b)(3), at the option of the 
                public housing agency involved, the dwelling units 
                demolished, disposed of, or otherwise eliminated in 
                connection with activities conducted pursuant to 
                subsection (c) of this section or the urban 
                revitalization demonstration program established under 
                the Departments of Veterans Affairs and Housing and 
                Urban Development, and Independent Agencies 
                Appropriations Act, 1993 (Public Law 102-389; 106 Stat. 
                1579), may be replaced as provided under this 
                paragraph.
                    ``(B) Certificate and new unit mix.--Each such 
                dwelling unit demolished, disposed of, or otherwise 
                eliminated shall be replaced with an additional 
                dwelling unit through--
                            ``(i) the use of tenant-based assistance 
                        under section 8(b) having a term of not less 
                        than 5 years, except that not more than one-
                        third of such dwelling units to be replaced by 
                        the public housing agency may be replaced as 
                        provided under this clause; or
                            ``(ii) any combination of additional public 
                        housing dwelling units, units acquired or 
                        otherwise provided for homeownership (including 
                        cooperative and condominium interests) under 
                        section 5(h), subtitles B or C of title IV of 
                        the Cranston-Gonzalez National Affordable 
                        Housing Act, or other programs for 
                        homeownership that have program requirements 
                        substantially equivalent to the requirements 
                        established under section 605 of the Housing 
                        and Community Development Act of 1987.
                    ``(C) Exemption from certain rules.--
                            ``(i) Site and neighborhood standards.--Any 
                        units provided, acquired, assisted, or 
                        developed by a public housing agency to replace 
                        a public housing dwelling unit pursuant to the 
                        requirements of this paragraph shall not be 
                        subject to any regulations of the Department of 
                        Housing and Urban Development relating to site 
                        and neighborhood standards, including the 
                        regulations contained in subsections (b), (c), 
                        or (d) of section 941.202 of title 24, Code of 
                        Federal Regulations.
                            ``(ii) Tenant consultation.--The demolition 
                        or disposition of any public housing dwelling 
                        units resulting from activities pursuant to 
                        subsection (c) shall not be subject to section 
                        18(b)(1).''.
    (e) Administration.--Subsection (g) of section 24 of the United 
States Housing Act of 1937 is amended to read as follows:
    ``(g) Administration.--
            ``(1) Office of severely distressed public housing 
        revitalization.--For the purpose of carrying out the 
        revitalization of severely distressed public housing in 
        accordance with this section, the Secretary shall establish 
        within the Department of Housing and Urban Development an 
        Office of Severely Distressed Public Housing Revitalization.
            ``(2) Block grant funding.--The Secretary shall administer 
        the activities for the revitalization of severely distressed 
        public housing under this section as a single integrated 
        program under which a single block grant of funds is made to a 
        public housing agency to cover--
                    ``(A) community service and support service 
                activities; and
                    ``(B) demolition, modernization, reconstruction, 
                site improvements, and replacement housing.
            ``(3) Procurement of services.--Notwithstanding any Federal 
        law relating to procurement or requiring competitive bidding in 
        procurement, any activities related to community service and 
        support service activities conducted pursuant to this section 
        may be procured on a sole source basis.
            ``(4) Independent administration of housing activities.--
        Activities relating to demolition, modernization, 
        reconstruction, site improvements, and replacement of housing 
        under the program under this section shall be administered 
        independent of any individual program regulations, handbooks, 
        and notices of the Department of Housing and Urban Development 
        for modernization, major reconstruction, demolition, or 
        development.
            ``(5) Independent funding guidelines.--The Secretary shall 
        establish separate guidelines for carrying out the program 
        under this section, which shall provide for--
                    ``(A) the unique integrated nature of the program;
                    ``(B) the higher direct costs of the program 
                compared to public housing development; and
                    ``(C) expediting, simplifying, and unifying 
                processing of applications and requests relating to the 
                program, and shall not provide for processing of such 
                applications and requests under the procedures and 
                guidelines applicable to various other programs of the 
                Department.''.
    (f) 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 occupied predominantly by families with 
                children who have extremely low incomes, high rates of 
                unemployment, and extensive dependency on various forms 
                of public assistance;
                    ``(C) has high rates of vandalism and criminal 
                activity (including drug-related criminal activity);
                    ``(D) has a vacancy rate, as determined by the 
                Secretary, of 50 percent or more;
                    ``(E) 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; and
                    ``(F) is not assisted with amounts reserved under 
                section 5(j)(2).
            ``(7) Support services.--The term `support services' 
        includes all activities designed to assist in increasing 
        economic opportunities, self-sufficiency, and improved quality 
        of life for the residents of the public housing project 
        involved, including literacy training, job training, day care, 
        economic development activities, and the training and services 
        described in subsections (e) and (f) of section 775 of the 
        Stewart B. McKinney Homeless Assistance Act. Support services 
        may be provided to and involve the participation of 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 stipend basis for the 
        social, economic, or physical improvement of the community to 
        be served, including opportunities for bettering the economic 
        situation of the participants providing the community service, 
        through completion of education requirements, job training, or 
        alternative methods of developing skills and job readiness. The 
        term includes the programs for national service of the types 
        eligible for assistance under subtitle C of title I of the 
        National and Community Service Act of 1990 and programs for 
        youth corps and urban youth corps under section 106 the 
        National and Community Service Trust Act of 1993, that focus on 
        residents of public housing agencies and other low-income youth 
        between the ages of 16 and 25 and that provide structured, 
        crew-based, adult-supervised work and learning experiences, 
        promoting citizenship and life and employment skills, including 
        such programs that are affiliated with union training and 
        apprenticeship programs.''.
    (g) Annual Report.--Subsection (i) of section 24 of the United 
States Housing Act of 1937 is amended--
            (1) by striking paragraph (2);
            (2) in paragraph (3) by striking ``and'' at the end; and
            (3) by redesignating paragraph (3) as paragraph (2) and 
        inserting after such paragraph the following new paragraph:
            ``(3) the status of planning and implementation activities 
        funded under this section; and''.
    (h) Conforming Amendments.--Section 24 of the United States Housing 
Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``subsection 
                (c)'' and inserting ``subsection (b)''; and
                    (B) in paragraph (2), by striking ``subsection 
                (d)'' and inserting ``subsection (c)'';
            (2) in subsection (f)(2), by striking ``subsections (c) and 
        (d)'' each place it appears and inserting ``subsections (b) and 
        (c)''; and
            (3) by redesignating subsections (c) through (i) (as 
        amended by this section) as subsections (b) through (h), 
        respectively.

SEC. 102. PUBLIC HOUSING DESIGN AND COST FLEXIBILITY.

    (a) In General.--Section 5(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437c(b)) is amended to read as follows:
    ``(b) Grants for Development of Public Housing.--
            ``(1) General authority.--Under a contract for 
        contributions to a public housing agency for development of 
        public housing projects, the Secretary may provide assistance 
        under this subsection to public housing agencies that do not 
        receive assistance under section 24(d) to expand the supply of 
        public housing for eligible low-income families. Such 
        assistance may be used to finance the construction, 
        reconstruction, or moderate or substantial rehabilitation of a 
        structure or a portion of a structure, or the acquisition of a 
        structure from the Resolution Trust Corporation or the 
        Secretary, to be used as public housing in accordance with this 
        section. Assistance may also cover the cost of real property 
        acquisition, site improvement, conversion, demolition, 
        relocation, and other expenses that the Secretary determines 
        are necessary to expand the supply of public housing.
            ``(2) Amount of assistance.--Assistance under this 
        subsection shall be provided in the form of a grant and shall 
        be in an amount calculated in accordance with the development 
        cost guidelines established in paragraph (6).
            ``(3) Applications.--Funds made available for entering into 
        contributions contracts for providing assistance under this 
        subsection shall be allocated by the Secretary among 
        applications that have been submitted by public housing 
        agencies and approved by the Secretary. The Secretary shall 
        establish the form and procedures for such applications, which 
        shall contain--
                    ``(A) a description of the proposed public housing, 
                including the unit mix, building configuration, and 
                amenities;
                    ``(B) a description of the assistance the applicant 
                seeks under this section;
                    ``(C) a description of the resources that are 
                expected to be made available in compliance with 
                paragraph (6);
                    ``(D) a description of (i) the category or 
                categories of persons the housing is intended to serve; 
                (ii) the supportive services, if any, to be provided to 
                the persons occupying such housing; (iii) the manner in 
                which such services will be provided to such persons, 
                including evidence of any residential supervision the 
                Secretary determines is necessary to facilitate the 
                adequate provision of the services; and (iv) the public 
                or private sources of assistance that can reasonably be 
                expected to fund or provide such services;
                    ``(E) a certification from the public official 
                responsible for submitting a housing strategy for the 
                jurisdiction to be served in accordance with section 
                105 of the Cranston-Gonzalez National Affordable 
                Housing Act that the proposed project is consistent 
                with the approved housing strategy; and
                    ``(F) such other information or certifications that 
                the Secretary determines to be necessary or appropriate 
                to achieve the purposes of this section.
        The Secretary shall not reject an application on technical 
        grounds without giving notice of the rejection and the basis 
        for the rejection to the applicant and affording the applicant 
        an opportunity to respond.
            ``(4) Selection criteria.--The Secretary shall establish 
        criteria for selecting applications for funding under this 
        section, from among applications submitted under this section. 
        The criteria shall include--
                    ``(A) the ability of the applicant public housing 
                agency to develop and operate the proposed housing;
                    ``(B) the need for housing for low-income families 
                in the area to be served, taking into consideration the 
                availability of other public housing and vacancy rates 
                in such facilities;
                    ``(C) the extent to which the proposed size, unit 
                mix, and design of the housing comply with local 
                building codes and regulations and local neighborhood 
                and site standards and cost guidelines;
                    ``(D) the extent to which the proposed size and 
                unit mix of the housing will enable the applicant to 
                manage and operate the housing efficiently and ensure 
                that the provision of supportive services will be 
                accomplished in an economical fashion;
                    ``(E) the extent to which the proposed design of 
                the housing will meet the special physical needs of the 
                type of population proposed to be served by the 
                housing;
                    ``(F) the extent to which the applicant has 
                demonstrated that the supportive services identified in 
                paragraph (3)(D) will be provided on a consistent, 
                long-term basis;
                    ``(G) the extent to which the proposed design of 
                the housing will accommodate the provision of 
                supportive services that are expected to be needed, 
                either initially or over the useful life of the 
                housing, by the category or categories of persons the 
                housing is intended to serve; and
                    ``(H) such other factors as the Secretary 
                determines to be appropriate to ensure that funds made 
                available under this section are used effectively.
            ``(5) Provision of services.--
                    ``(A) In general.--In carrying out the provisions 
                of this subsection, the Secretary shall ensure that 
                housing assisted under this subsection provides a range 
                of services tailored to the needs of the category or 
                categories of persons occupying such housing.
                    ``(B) Local coordination of services.--The 
                Secretary shall ensure that public housing agencies 
                administering housing assisted under this subsection 
                have the managerial capacity to--
                            ``(i) assess on an ongoing basis the 
                        service needs of residents;
                            ``(ii) coordinate the provision of 
                        supportive services and tailor such services to 
                        the individual needs of residents; and
                            ``(iii) seek on a continuous basis new 
                        sources of assistance to ensure the long-term 
                        provision of supportive services.
            ``(6) Nonbinding development cost guidelines.--
                    ``(A) In general.--The Secretary, in consultation 
                with public housing agencies and State area offices of 
                the Department of Housing and Urban Development, shall 
                establish development cost guidelines for housing 
                assisted under this section. The guidelines shall be 
                recommendatory and advisory in nature and the Secretary 
                may not require any public housing assisted under this 
                section to conform to such guidelines.
                    ``(B) Content.--The guidelines shall be established 
                by market area for various types and sizes of housing 
                and shall reflect--
                            ``(i) the cost of construction, 
                        reconstruction, or rehabilitation of housing 
                        that meets applicable State and local housing 
                        and building codes;
                            ``(ii) the cost of movables necessary to 
                        the basic operation of the housing, as 
                        determined by the Secretary;
                            ``(iii) the cost of special design features 
                        necessary to make the housing accessible to 
                        elderly persons or persons with disabilities;
                            ``(iv) the cost of special design features 
                        necessary to make individual dwelling units 
                        meet the physical needs of elderly persons or 
                        persons with disabilities;
                            ``(v) the cost of congregate space 
                        necessary to accommodate the provision of 
                        supportive services to project residents;
                            ``(vi) if the housing is newly constructed, 
                        the cost of meeting the energy efficiency 
                        standards promulgated by the Secretary in 
                        accordance with section 109 of the Cranston-
                        Gonzalez National Affordable Housing Act; and
                            ``(vii) the cost of land, including 
                        necessary site improvement.
                In establishing development cost guidelines for a given 
                market area under this paragraph, the Secretary shall 
                use data that reflect currently prevailing costs of 
                construction, reconstruction, or rehabilitation, and 
                land acquisition in the area.
                    ``(C) Rtc, fdic, and fha properties.--In the case 
                of existing housing and related facilities to be 
                acquired from the Resolution Trust Corporation under 
                section 21A(c) of the Federal Home Loan Bank Act, from 
                the Federal Deposit Insurance Corporation under section 
                40 of the Federal Deposit Insurance Act, or from the 
                Secretary under section 203 of the Housing and 
                Community Development Amendments of 1978, the cost 
                guidelines shall include--
                            ``(i) the cost of acquiring such housing;
                            ``(ii) the cost of rehabilitation, 
                        alteration, conversion, or improvement, 
                        including the moderate rehabilitation thereof; 
                        and
                            ``(iii) the cost of the land on which the 
                        housing and related facilities are located.
                    ``(D) Annual adjustments.--The Secretary, in 
                consultation with public housing agencies, shall adjust 
                the cost guidelines not less than once annually to 
                reflect changes in the general level of construction, 
                reconstruction, or rehabilitation costs.
                    ``(E) Design flexibility.--The Secretary shall, to 
                the extent practicable, allow public housing agencies 
                maximum flexibility in designing housing assisted under 
                this section so that the housing is appropriate for the 
                neighborhood or location of the housing and the 
                proposed resident population. Such flexibility shall 
                relate to the number of bedrooms in units in the 
                housing, the types of living spaces in the housing, the 
                sizes of the living spaces, and other factors in the 
                design of the housing.
                    ``(F) Changes in design.--A public housing agency 
                that has been selected to receive assistance under this 
                subsection for providing public housing may, after such 
                selection, change elements in the design of the housing 
                to be provided (including the unit mix, site, size of 
                living spaces, amenities, and building configuration) 
                without the prior approval of the Secretary if--
                            ``(i) the overall objective of the housing 
                        proposed in the application for such assistance 
                        is not altered;
                            ``(ii) the total number of units to be 
                        provided in the housing is not significantly 
                        altered; and
                            ``(iii) the public housing agency notifies 
                        the applicable State area office of the 
                        Department of Housing and Urban Development of 
                        such changes on a timely basis.
                    ``(G) Use of amounts from non-federal sources.--A 
                public housing agency may, without the prior approval 
                of the Secretary, use amounts from non-Federal sources 
                for amenities and other features of appropriate design 
                and construction suitable for public housing if the 
                cost of such amenities (i) is not financed with the 
                grant received under this subsection, and (ii) is not 
                taken into consideration in determining the amount of 
                any Federal assistance provided for the housing.
                    ``(H) Neighborhood impact.--The Secretary may not 
                reject an application for assistance under this 
                subsection based solely on any requirements established 
                by the Secretary relating to the impact of the proposed 
                project on the neighborhood if--
                            ``(i) the application was made to provide 
                        housing to replace (through demolition and new 
                        construction or acquisition) existing public 
                        housing on a site owned by the public housing 
                        agency making the application; or
                            ``(ii) the public housing agency making the 
                        application demonstrates that the site selected 
                        for the housing proposed in the application 
                        takes into consideration any local neighborhood 
                        revitalization and economic development plans.
            ``(7) Incentives for savings.--
                    ``(A) Special housing account.--The Secretary shall 
                use the development cost guidelines established under 
                paragraph (6) to calculate the amount of financing to 
                be made available to public housing agencies to provide 
                housing proposed in applications funded under this 
                subsection. Except as provided in subparagraph (C), a 
                public housing agency that incurs actual development 
                costs that are less than the amount of financing 
                provided under this subsection with respect to an 
                application shall be entitled to retain 50 percent of 
                the savings in a special housing account. Such 
                percentage shall be increased to 75 percent for public 
                housing incorporating energy efficiency features that--
                            ``(i) exceed the energy efficiency 
                        standards promulgated by the Secretary in 
                        accordance with section 109 of the Cranston-
                        Gonzalez National Affordable Housing Act;
                            ``(ii) substantially reduce the life-cycle 
                        cost of the housing; and
                            ``(iii) enhance tenant comfort and 
                        convenience.
                    ``(B) Uses.--The special housing account 
                established under subparagraph (A) for a public housing 
                project may be used (i) to supplement services provided 
                to residents of the housing or funds set aside for 
                replacement reserves, or (ii) for such other purposes 
                as determined by the Secretary.
                    ``(C) Exception.--Any savings incurred by a public 
                housing agency for a public housing project that are 
                due to a substantial redesign of the project from the 
                design proposed in the approved application for the 
                project, including reducing the number and mix of 
                dwelling units or eliminating amenities, shall not be 
                considered for purposes of a special housing account 
                for the housing under subparagraph (A) unless approved 
                by the Secretary.''.
    (b) Related Amendments.--Title I of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 5(b)(2), by inserting ``under subsection 
        (b)'' after ``(in the form of grants'';
            (2) in section 5(j)(1), by striking subparagraph (B);
            (3) in section 5(j)(2), by striking subparagraph (D);
            (4) in section 5(j)(3)(B), by striking the last sentence;
            (5) in section 5(k), by striking the second sentence;
            (6) in section 6(a), by striking the second and third 
        sentences;
            (7) in section 6, by striking subsections (b) and (h); and
            (8) by striking section 13.

SEC. 103. HOPE HOMEOWNERSHIP PROGRAMS.

    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 subsections:
    ``(a) Fiscal Year 1995.--There is authorized to be appropriated for 
fiscal year 1995 an aggregate amount of $100,000,000 for grants and 
activities under--
            ``(1) title III of the United States Housing Act of 1937;
            ``(2) subtitle B of this title;
            ``(3) subtitle C of this title; and
            ``(4) technical assistance to potential applicants, 
        applicants, and recipients of assistance under the provisions 
        referred to in paragraphs (1), (2) and (3) of this subsection.
Any amounts appropriated pursuant to this subsection shall remain 
available until expended.
    ``(b) Fiscal Year 1996.--There is authorized to be appropriated for 
fiscal year 1996 an aggregate amount of $100,000,000 for grants and 
activities under--
            ``(1) title III of the United States Housing Act of 1937;
            ``(2) subtitle B of this title;
            ``(3) subtitle C of this title; and
            ``(4) technical assistance to potential applicants, 
        applicants, and recipients of assistance under the provisions 
        referred to in paragraphs (1), (2) and (3) of this subsection.
Any amounts appropriated pursuant to this subsection shall remain 
available until expended.''.

SEC. 104. DISALLOWANCES OF EARNED INCOME FOR RESIDENTS WHO OBTAIN 
              EMPLOYMENT.

    (a) Exclusions From Adjusted Income.--Section 3(b)(5) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``and'' before ``(ii)''; and
                    (B) by inserting before the semicolon at the end 
                the following; ``; and (iii) to the extent documented 
                by the family, the amount paid by the family for health 
                insurance coverage for any members of the family 
                residing in the household who, at the time, are not 
                receiving or approved to receive any assistance for 
                health care from the Federal Government or any State 
                government'';
            (2) by striking subparagraph (E) and inserting the 
        following new subparagraph:
            ``(E) in the case of an elderly family, 10 percent of the 
        earned income of the family, and, in the case of a nonelderly 
        family, 20 percent of the earned income of the family;'';
            (3) in subparagraph (F), by striking ``and'' at the end;
            (4) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (5) by adding at the end the following new subparagraph:
            ``(H) in the case of a family residing in public housing, 
        of any earned income of any formerly dependent child who is a 
        member of the family--
                    ``(i) 100 percent of such earned income during the 
                period beginning on the date of the first 
                redetermination of the rent for and family composition 
                of the family that occurs after the child reaches 18 
                years of age and ending upon the commencement of the 
                period under clause (ii);
                    ``(ii) 85 percent of such earned income during the 
                period beginning on the date of the first 
                redetermination of the rent for and family composition 
                of the family that occurs after the child reaches 19 
                years of age and ending upon the commencement of the 
                period under clause (iii);
                    ``(iii) 65 percent of such earned income during the 
                period beginning on the date of the first 
                redetermination of the rent for and family composition 
                of the family that occurs after the child reaches 20 
                years of age and ending upon the commencement of the 
                period under clause (iv); or
                    ``(iv) 40 percent of such earned income during the 
                1-year period beginning on the date of the first 
                redetermination of the rent for and family composition 
                of the family that occurs after the child reaches 21 
                years of age.''.
    (b) Option for PHA to Exclude Earned Income In Rent 
Determinations.--
            (1) In general.--Section 3 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437a) is amended--
                    (A) 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
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Optional Disallowance of Earned Income From Public Housing 
Rent Determinations.--Notwithstanding any other provision of law, a 
public housing agency may provide (at the option of a public housing 
agency) that, for all units in public housing administered by the 
agency, the rent payable under subsection (a) for any such unit 
occupied by a family whose income increases as a result of employment 
of a member of the family who was previously unemployed for 1 or more 
years (including a family whose income increases as a result of the 
participation of a family member in a Family Self-Sufficiency program 
under section 22 or other job training program) may not--
            ``(1) be increased for a period of 18 months, beginning 
        with the commencement of employment as a result of the 
        increased income due to such employment; and
            ``(2) after the expiration of such 18-month period, be 
        increased due to the continued employment of such family member 
        by more than 10 percent per year from the next 24 months; and
            ``(3) in any case, exceed the amount determined under 
        subsection (a).''.
            (2) Applicability.--Notwithstanding the amendments made by 
        paragraph (1), 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 added by section 515(b) of the 
        Cranston-Gonzalez National Affordable Housing Act (Public Law 
        101-625; 104 Stat. 4199), as such paragraph existed before the 
        date of enactment of this subsection, shall continue to be 
        governed by such authority.

SEC. 105. CEILING RENTS BASED ON REASONABLE RENTAL VALUE.

    (a) Amendment.--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) Regulations.--
            (1) In general.--The Secretary shall, by regulation, after 
        notice and an opportunity for public comment, establish such 
        requirements as may be necessary to carry out the provisions of 
        section 3(a)(2)(A) of the United States Housing Act of 1937, as 
        amended by subsection (a).
            (2) Applicability.--Except in the case of an Indian housing 
        authority, the regulations issued pursuant to paragraph (1) 
        shall not apply to scattered site public housing units.
            (3) Transition rule.--Prior to the issuance of final 
        regulations under paragraph (1), a public housing agency may 
        implement ceiling rents which shall be--
                    (A) determined in accordance with section 
                3(a)(2)(A) of the United States Housing Act of 1937, as 
                such section existed before the date of enactment of 
                this Act; or
                    (B) equal to the 95th percentile of the rent paid 
                for a unit of comparable size by tenants in the same 
                project or a group of comparable projects totaling 50 
                units or more.

SEC. 106. RESIDENT MANAGEMENT PROGRAM.

    Section 20(f) of the United States Housing Act of 1937 (42 U.S.C. 
1437r(f)) is amended--
            (1) in paragraph (2), by striking ``$100,000'' and 
        inserting ``$250,000''; and
            (2) in paragraph (3), by adding at the end the following 
        new sentence: ``The Secretary may use not more than 10 percent 
        of the amounts made available under this subsection in each 
        fiscal year for program monitoring and evaluation, technical 
        assistance, and information dissemination.''.

                TITLE II--TECHNICAL AND OTHER AMENDMENTS

SEC. 201. CORRECTION TO DEFINITION OF ``FAMILY''.

    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--
            (1) by striking ``means'' and inserting ``includes''; and
            (2) by inserting ``and'' after ``children,''.

SEC. 202. REPEAL OF LIMITATION ON INCOME ADJUSTMENTS.

    Paragraph (3) of section 103(a) of the Housing and Community 
Development Act of 1992 (42 U.S.C. 1437a note) is hereby repealed.

SEC. 203. IDENTIFICATION OF 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); and
                    (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 (3)''; and
            (2) in subsection (f)(1)--
                    (A) by striking subparagraph (B); and
                    (B) in subparagraph (D), by striking ``(1), (2), 
                and (3)'' and inserting ``(1) and (3)''.

SEC. 204. 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. 205. PROJECT-BASED ACCOUNTING.

    Section 6(c)(4)(E) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(c)(4)(E)) is amended by striking ``250'' and inserting 
``500''.

SEC. 206. OPERATING SUBSIDY ADJUSTMENTS FOR ANTICIPATED FRAUD 
              RECOVERIES.

    Section 9(a) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(a)) is amended by adding at the end the following new paragraph:
    ``(4) Adjustments to a public housing agency's operating subsidy 
made by the Secretary under this section shall reflect actual changes 
in rental income collections resulting from the application of section 
904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 
1988.''.

SEC. 207. LABOR STANDARDS FOR CONSTRUCTION CONTRACTS UNDER UNITED 
              STATES HOUSING ACT OF 1937.

    (a) In General.--Section 12(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437j(a)) is amended--
            (1) by inserting before ``shall also contain a provision'' 
        the following: ``any such contract which is in excess of (1) 
        $100,000 for new construction (including painting and 
        decorating), or (2) $15,000 for alteration, repair, renovation, 
        demolition, or reconstruction (including painting or 
        decorating),''; and
            (2) by striking ``(including a project with nine or more 
        units assisted under section 8 of this Act, where the public 
        housing agency or the Secretary and the builder or sponsor 
        enter into an agreement for such use before construction or 
        rehabilitation is commenced)''.
    (b) Applicability.--Notwithstanding the amendments made by 
subsection (a), the provisions of section 12 of the United States 
Housing Act of 1937, as in effect immediately before the date of the 
enactment of this Act, shall apply with respect to contracts for loans, 
contributions, sale, or lease pursuant to such Act if--
            (1) in the case of a public housing project, the public 
        housing agency has advertised before such effective date for 
        (i) competitive bids to build, rehabilitate, or modernize the 
        project on a site owned by the public housing agency, or (ii) a 
        developer to submit a proposal for a site or property owned or 
        to be purchased by the developer for sale to the public housing 
        agency upon completion of the project;
            (2) in the case of a project assisted under section 8 of 
        the United States Housing Act of 1937, the public housing 
        agency or the Secretary and the builder or sponsor entered into 
        an agreement for such use before such effective date; or
            (3) in the case of a project under title III, an applicant 
        has submitted an application for an implementation grant to the 
        Secretary before such effective date.

SEC. 208. TECHNICAL ASSISTANCE FOR LEAD HAZARD REDUCTION GRANTEES.

    Section 1011(g) of the Housing and Community Development Act of 
1992 (42 U.S.C. 5318 note) is hereby repealed.

SEC. 209. ENVIRONMENTAL REVIEW IN CONNECTION WITH GRANTS FOR LEAD-BASED 
              PAINT HAZARD REDUCTION.

    Section 1011 of the Housing and Community Development Act of 1992 
(42 U.S.C. 5318 note) is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by adding after subsection (n) the following new 
        subsection:
    ``(o) Environmental Review.--
            ``(1) In general.--For purposes of environmental review, 
        decisionmaking, and action pursuant to the National 
        Environmental Policy Act of 1960 and other provisions of law 
        that further the purposes of such Act, a grant under this 
        section shall be treated as assistance under the HOME 
        Investment Partnership Act, established under title II of the 
        Cranston-Gonzalez National Affordable Housing Act, and shall be 
        subject to the regulations promulgated by the Secretary to 
        implement section 288 of such Act.
            ``(2) Applicability.--This subsection shall apply to--
                    ``(A) grants awarded under this section; and
                    ``(B) grants awarded to States and units of general 
                local government for the abatement of significant lead-
                based paint and lead dust hazards in low- and moderate-
                income owner-occupied units and low-income privately 
                owned rental units pursuant to title II of the 
                Departments of Veterans Affairs and Housing and Urban 
                Development, and Independent Agencies Appropriations 
                Act, 1992 (Public Law 102-139, 105 Stat. 736).''.

SEC. 210. FIRE SAFETY IN FEDERALLY ASSISTED HOUSING.

    Section 31(c)(2)(A)(i) of the Federal Fire Prevention and Control 
Act of 1974 (15 U.S.C. 2227(c)(2)(A)(i)) is amended by adding ``(or 
equivalent level of safety)'' after ``system''.

SEC. 211. PAYMENT IN LIEU OF TAXES.

    Section 6(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(d)) is amended--
            (1) by striking ``(d) Every'' and inserting the following:
    ``(d) Payments in Lieu of Taxes.--
            ``(1) Exemption from state and local taxes and payment 
        requirement.--Every'';
            (2) in the first sentence, by striking ``10 per centum'' 
        and all that follows through the period and inserting the 
        following: ``the amount determined under paragraph (2),''; and
            (3) by adding at the end the following new paragraphs:
            ``(2) Amount.--For any project, the amount referred to in 
        paragraph (1) shall be the greater of--
                    ``(A)(i) 10 percent of the sum of the shelter rents 
                charged in such project, or (ii) such lesser amount 
                that (I) is prescribed by State law, (II) is agreed to 
                by the local governing body in its agreement for local 
                cooperation with the public housing agency required 
                under section 5(e)(2), or (III) is due to failure of a 
                local public body or bodies other than the public 
                housing agency to perform any obligation under such 
                agreement.
                    ``(B) the difference of--
                            ``(i) the sum of (I) $150 multiplied by the 
                        number of units in the project designated for 
                        occupancy by elderly families pursuant to 
                        section 7, and (II) $250 multiplied by the 
                        number of units in the project that are not 
                        units designated for occupancy by elderly 
                        families pursuant to section 7; less
                            ``(ii) any amount that the local government 
                        body, in its agreement for local cooperation 
                        with the public housing agency required under 
                        section 5(e)(2), agrees to subtract from the 
                        sum under clause (i).
            ``(3) Effective Date and Applicability.--The amendments 
        under section 211 shall be made and shall take effect on 
        October 1, 1994 and shall apply with respect to fiscal year 
        1995 and fiscal years thereafter.''.

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