[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1299 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 1299

  To reform requirements for the disposition of multifamily property 
   owned by the Secretary of Housing and Urban Development, enhance 
program flexibility, authorize a program to combat crime, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 28 (legislative day, June 30), 1993

 Mr. Riegle (for himself and Mr. Sarbanes) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To reform requirements for the disposition of multifamily property 
   owned by the Secretary of Housing and Urban Development, enhance 
program flexibility, authorize a program to combat crime, and for other 
                               purposes.

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

                   short title and table of contents

    Section 1. (a) Short Title.--This Act may be cited as the ``Housing 
and Community Development Act of 1993''.
    (b) Table of Contents.--

                    TITLE I--FHA MULTIFAMILY REFORMS

Sec. 101. Multifamily property disposition.
Sec. 102. Amend the requirement for State and local government right of 
                            first refusal.
Sec. 103. Repeal State agency multifamily property disposition 
                            demonstration.
Sec. 104. Demonstration: RTC marketing and disposition of multifamily 
                            properties owned by HUD.
Sec. 105. Authorize civil money penalties against general partners and 
                            certain managing agents of multifamily 
                            projects.
Sec. 106. Extend HUD review period for approval of management 
                            improvement and operating plans.
Sec. 107. Use of flexible subsidy in preservation projects.
Sec. 108. Delete requirement to reduce interest rates to avoid 
                            foreclosure on assigned mortgages.
                 TITLE II--ENHANCE PROGRAM FLEXIBILITY

            Subtitle A--Office of Public and Indian Housing

Sec. 201. Freeze fees for administration of the certificate and voucher 
                            programs.
Sec. 202. Revitalization of severely distressed public housing.
Sec. 203. Disallowance of earned income for residents who obtain 
                            employment.
Sec. 204. Ceiling rents based on reasonable rental value.
        Subtitle B--Office of Community Planning and Development

Sec. 210. Economic revitalization initiative.
Sec. 211. HOME investment partnerships.
Sec. 212. Reduce HOPE 3 match requirement to 25 percent.
            Subtitle C--Community Partnerships Against Crime

Sec. 220. COMPAC program.
               TITLE III--TECHNICAL AND OTHER AMENDMENTS

                Subtitle A--Public and Assisted Housing

Sec. 301. Correct the definition of family in the 1937 Act to clarify 
                            that families are not required to include 
                            children.
Sec. 302. Eliminate requirement for identification of CIAP replacement 
                            needs.
Sec. 303. Applicability of public housing amendments to Indian housing.
Sec. 304. Increase the unit threshold above which PHAs are required to 
                            adopt project-based accounting.
                    Subtitle B--Multifamily Housing

Sec. 310. Correct errors in multifamily mortgage limits.
Sec. 311. FHA multifamily risk-sharing HFA pilot program amendments.
Sec. 312. Subsidy layering review.

                    TITLE I--FHA MULTIFAMILY REFORMS

                    multifamily property disposition

    Sec. 101. (a) Subsidized and Unsubsidized Projects.--Section 203 of 
the Housing and Community Development Amendments of 1978 is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2) through (6) as 
                paragraphs (3) through (7), respectively; and
                    (B) by striking paragraph (1) and inserting in lieu 
                thereof the following:
            ``(1) preserving so that they are available to and 
        affordable by low-income persons--
                    ``(A) in the case of a subsidized or formerly 
                subsidized multifamily housing project referred to in 
                subsections (i)(2) (A) through (C), all units in the 
                project;
                    ``(B) in the case of a subsidized or formerly 
                subsidized project referred to in subsection (i)(2)(D), 
                all units in the project that are covered, or were 
                covered immediately before foreclosure or acquisition 
                of the project by the Secretary, by an assistance 
                contract under any of the authorities referred to in 
                such subsection;
                    ``(C) in all other multifamily housing projects, at 
                least the units that are covered, or were covered 
                immediately before foreclosure or acquisition of the 
                project by the Secretary, by a project-based assistance 
                contract under--
                            ``(i) section 8(b)(2) of the United States 
                        Housing Act of 1937 (as such section existed 
                        before October 1, 1983) (new construction and 
                        substantial rehabilitation); section 8(b) of 
                        such Act (property disposition); section 
                        8(d)(2) of such Act (project-based 
                        certificates); section 8(e)(2) of such Act 
                        (moderate rehabilitation); section 23 of such 
                        Act (as in effect before January 1, 1975); or 
                        section 101 of the Housing and Urban 
                        Development Act of 1965 (rent supplements); or
                            ``(ii) section 8 of the United States 
                        Housing Act of 1937, following conversion from 
                        such section 101;
            ``(2) in the case of multifamily housing projects other 
        than subsidized projects, providing project-based rental 
        assistance to units that were covered by an assistance contract 
        under the Loan Management Set-Aside program under section 8(b) 
        of such Act immediately before foreclosure or acquisition of 
        the project by the Secretary: Provided, That the assistance 
        shall be limited to--
                    ``(A) tenants residing in the units immediately 
                before the foreclosure or acquisition; and
                    ``(B) tenants initially admitted to units under 
                such contract that were vacant at the time of the 
                foreclosure or sale by HUD of the project;
        and such assistance shall not be provided to subsequent 
        tenants;'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``, including'' and all 
                        that follows through ``persons,''; and
                            (ii) by inserting ``competent and'' 
                        immediately before ``capable'';
                    (B) by adding at the end thereof the following new 
                paragraph:
            ``(3) to develop such procedures as the Secretary 
        determines necessary to obtain appropriate community or 
        resident input into disposition plans; and'';
            (3) by striking paragraph (1) of subsection (d) and the 
        introductory material preceding such paragraph (1), and 
        inserting in lieu thereof the following: ``In carrying out the 
        goals specified in subsections (a)(1) and (2), the Secretary 
        shall take not less than one of the following actions:
            ``(1) Enter into contracts under section 8 of the United 
        States Housing Act of 1937, to the extent budget authority is 
        available, with owners of multifamily housing projects that are 
        acquired by a purchaser other than the Secretary at foreclosure 
        or after sale by the Secretary.
                    ``(A)(i) In the case of a subsidized or formerly 
                subsidized project referred to in subsections (i)(2) 
                (A) through (C), the contract shall be for a term of at 
                least 15 years and shall be sufficient to assist at 
                least all units covered by an assistance contract under 
                any of the authorities referred to in subsection 
                (i)(2)(D). In order to make available to families any 
                of such units that are occupied by persons not eligible 
                for assistance under section 8, but that subsequently 
                become vacant, a contract under this clause shall also 
                provide that when any such vacancy occurs, the owner 
                shall lease the available unit to a family eligible for 
                assistance under section 8. The Secretary shall use the 
                authority contained in paragraph (3) in connection with 
                any unit in such projects that does not receive 
                project-based assistance under this paragraph.
                    ``(ii) In the case of a subsidized or formerly 
                subsidized project referred to in subsection (i)(2)(D), 
                the contract shall be for a term of at least 15 years 
                and shall be sufficient to assist at least all units in 
                the project that are covered, or were covered 
                immediately before foreclosure or acquisition of the 
                project by the Secretary, by an assistance contract 
                under any of the authorities referred to in such 
                subsection. In order to make available to families any 
                of such units that are occupied by persons not eligible 
                for assistance under section 8, but that subsequently 
                become vacant, a contract under this clause shall also 
                provide that when any such vacancy occurs, the owner 
                shall lease the available unit to a family eligible for 
                assistance under section 8.
                    ``(iii) Contracts under clauses (i) and (ii) shall 
                be at contract rents that, consistent with subsection 
                (a), provide for the necessary rehabilitation of such 
                project and do not exceed such percentage of the 
                existing housing fair market rents for the area (as 
                determined by the Secretary under section 8(c) of the 
                United States Housing Act of 1937) as the Secretary may 
                prescribe.
                    ``(B) In all other multifamily housing projects the 
                contract shall be for an initial term of at least five 
                years and shall at least be sufficient to provide 
                project-based rental assistance for all units--
                            ``(i) that are covered, or were covered 
                        immediately before foreclosure or acquisition 
                        of the project by the Secretary, by an 
                        assistance contract under--
                                    ``(I) section 8(b)(2) of the United 
                                States Housing Act of 1937 (as such 
                                section existed before October 1, 1983) 
                                (new construction and substantial 
                                rehabilitation); section 8(b) property 
                                disposition); section 8(d)(2) of such 
                                Act (project-based certificates); 
                                section 8(e)(2) of such Act (moderate 
                                rehabilitation); section 23 of such Act 
                                (as in effect before January 1, 1975); 
                                or section 101 of the Housing and Urban 
                                Development Act of 1965 (rent 
                                supplements); or
                                    ``(II) section 8 of the United 
                                States Housing Act of 1937, following 
                                conversion from such section 101; and
                            ``(ii) that were covered by an assistance 
                        contract under the Loan Management Set-Aside 
                        program under section 8(b) of such Act 
                        immediately before foreclosure or acquisition 
                        of the project by the Secretary: Provided, That 
                        the assistance shall be limited to--
                                    ``(I) tenants residing in the units 
                                immediately before the foreclosure or 
                                acquisition; and
                                    ``(II) tenants initially admitted 
                                to units under such contract that were 
                                vacant at the time of the foreclosure 
                                or sale by HUD of the project;
                        and such assistance shall not be provided to 
                        subsequent tenants.'';
            (4) by adding the following new paragraph at the end of 
        subsection (d):
            ``(4) In connection with projects referred to in paragraph 
        (1), the Secretary is authorized to make available tenant-based 
        rental assistance under section 8 (b) or (o) of such Act to 
        very low-income families (as defined in section 3(b)(2) of the 
        United States Housing Act of 1937) that do not qualify for 
        project-based assistance under such paragraph.''; and
            (5) in subsections (e) (3) and (4), by striking ``15-year 
        period'' and inserting in lieu thereof the following: ``the 
        period of assistance''.
    (b) Tenant-Based Assistance.--Section 203(d)(2) of such Act is 
amended--
            (1) in the first sentence, by striking the parenthetical; 
        and
            (2) by adding at the end thereof the following new 
        sentence: ``Actions pursuant to this paragraph may be taken in 
        connection with not more than 10 percent of the units in 
        subsidized or formerly subsidized projects owned by the 
        Secretary.''.
    (c) Alternate Assistance.--Section 203(d)(3) of such Act is amended 
by striking ``will ensure that,'' and all that follows through the end, 
and inserting in lieu thereof the following: ``will ensure that--
                    ``(A) the project is available to, and affordable 
                by, low-income persons; and
                    ``(B) for a period of not less than 15 years, there 
                shall be in force such use restrictions and rent 
                regulation as the Secretary may prescribe.''.
    (d) Nonrental, Nonresidential Use.--Section 203(d) of such Act, as 
amended by the previous provisions of this section, is amended--
            (1) by adding the following new paragraph at the end 
        thereof:
            ``(5)(A) Notwithstanding any other provision of law, of the 
        total number of units in multifamily housing projects that are 
        owned by the Secretary, the Secretary may make up to--
                    ``(i) 10 percent available for uses, other than 
                rental or cooperative use, such as low-income 
                homeownership opportunities, shelters for the homeless, 
                and office space for resident or housing-related social 
                service providers; and
                    ``(ii) five percent available for any use, if the 
                Secretary, in consultation with the local or areawide 
                governing body, determines that such action will assist 
                efforts to deconcentrate low-income housing 
                opportunities.
            ``(B) In connection with projects referred to in 
        subparagraph (A), the Secretary is authorized to make available 
        tenant-based rental assistance under section 8 (b) or (o) of 
        such Act to very low-income families (as defined in section 
        3(b)(2) of the United States Housing Act of 1937) to assist 
        them in locating other decent, safe, and sanitary housing.''; 
        and
            (2) in the last sentence of subsection (e)(1), by striking 
        ``value'' and all that follows through ``(d)'' and inserting in 
        lieu thereof the following: ``intended use of the property 
        after sale''.
    (e) Displacement.--Sections 203(f)(2) (B) and (C) are each amended 
by striking ``above-moderate income'' and inserting in lieu thereof 
``above low-income''.
    (f) Sale of Mortgages on Unsubsidized Projects.--Section 203(h) of 
such Act is amended by adding at the end thereof the following new 
paragraph:
            ``(4) Notwithstanding any other provision of law, the 
        Secretary is authorized to sell mortgages held on multifamily 
        housing projects other than subsidized projects on such terms 
        and conditions as the Secretary may prescribe.''.
    (g) Definition of ``Subsidized Project.''--Section 203(i) of such 
Act is amended--
            (1) in paragraph (1), by striking ``or section 312 of the 
        Housing Act of 1964'';
            (2) by striking subparagraph (C) of paragraph (2) and 
        renumbering the remaining subparagraphs accordingly;
            (3) in paragraph (2)(C), as redesignated by paragraph (2) 
        of this subsection, by striking ``or to'' and all that follows 
        through ``1964'';
            (4) by striking subparagraph (D) of paragraph (2), as 
        redesignated by paragraph (2) of this subsection, and inserting 
        in lieu thereof the following new subparagraph:
                    ``(D)(i) rent supplement payments under section 101 
                of the Housing and Urban Development 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 
                certificates under subsection (b)(1) or vouchers under 
                subsection (o)), if (except for purposes of paragraphs 
                (1) and (2) of subsection (h) and section 183(c) of the 
                Housing and Community Development Act of 1987) such 
                assistance payments are made to more than 50 percent of 
                the units in the project.''; and
            (5) by striking paragraph (i)(4).
    (h) Other Provisions.--Section 203 of such Act is amended by adding 
at the end thereof the following new subsection:
    ``(k) In providing tenant-based assistance in connection with 
activities pursuant to subsection (d)(4) or (d)(5)(B), the Secretary 
shall take into consideration the condition of the local market in 
which the assistance will be used and shall take such steps as the 
Secretary deems necessary for the successful use of the assistance.''.
    (i) Use of Savings in Mandatory Expenditures.--(1) From amounts of 
savings in mandatory expenditures that result from the amendments made 
by this section, the Secretary shall--
            (A) make grants to States and units of general local 
        government in a total amount of $400,000,000 for the 
        rehabilitation of multifamily projects formerly owned by the 
        Secretary that have been transferred to such governmental 
        entities;
            (B) transfer a sufficient number of multifamily housing 
        projects owned by the Secretary to States and units of general 
        local government to assure full use of the amount required for 
        grants under subparagraph (A); and
            (C) require that the grantees comply with requirements 
        established by the Secretary governing use of the project and 
        the grant, including requirements governing use of the units 
        for rental by low-income families and affordability of rents, 
        as determined by the Secretary.
The Secretary's authority to make expenditures for grants under this 
subparagraph shall terminate on September 30, 1994. The Secretary 
shall, by notice published in the Federal Register, establish such 
requirements as may be necessary to carry out the provisions of this 
subparagraph, including a requirement that States and units of general 
local government do not earn arbitrage profits from these grants.
    (2) For purposes of this subsection--
            (A) the term ``low-income families'' has the meaning given 
        such term in section 3(b)(2) of the United States Housing Act 
        of 1937;
            (B) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development;
            (C) the term ``State'' has the meaning given such term in 
        section 104(2) of the Cranston-Gonzalez National Affordable 
        Housing Act, including 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 paragraph (1)(A); and
            (D) the term ``unit of general local government'' has the 
        meaning given such term in section 104(1) of the Cranston-
        Gonzalez National Affordable Housing Act, including any agency 
        or instrumentality thereof that is established pursuant to 
        legislation and designated by the chief executive to act on 
        behalf of the jurisdiction with regard to paragraph (1)(A).

  amend the requirement for state and local government right of first 
                                refusal

    Sec. 102. (a) Section 203(e)(2) of the Housing and Community 
Development Amendments of 1978 is amended to read as follows:
            ``(2) The Secretary, within 60 days of acquiring title to a 
        project, shall notify the unit of general local government and 
        the State housing finance agency (or other agency or agencies 
        designated by the Governor) of the acquisition of such title. 
        Within 60 days of this notice, the local government or 
        designated State agency may submit to the Secretary a 
        preliminary expression of interest in the project. The 
        Secretary may take such actions as may be necessary to require 
        the local government or designated State agency to substantiate 
        such interest. If the local government or designated State 
        agency has expressed interest within the 60-day period, and has 
        substantiated such interest if requested, upon approval of a 
        disposition plan for a project, the Secretary shall notify the 
        local government and designated State agency of the terms and 
        conditions of the disposition plan and give the local 
        government or designated State agency 90 days from the date of 
        the notification to make an offer to purchase the project. If 
        the local govenment or designated State agency does not express 
        interest within the 60-day period, or does not substantiate an 
        expressed interest if requested, the Secretary, upon approval 
        of a disposition plan, may offer the project for sale to any 
        interested person or entity.''.
    (b) Section 203(e)(3) of such Act is amended by striking ``The'' in 
the first sentence and inserting ``Where the Secretary has given the 
local government or designated State agency 90 days to make an offer to 
purchase the project, the''.
    (c) Section 203(e) of such Act, as amended by subsections (a) and 
(b), shall apply to projects that are acquired on or after the 
effective date of this section. With respect to projects acquired 
before the effective date of this section, the Secretary may apply--
            (1) the requirements of sections 203 (e)(2) and (e)(3) of 
        such Act as they existed immediately before the effective date 
        of this section; or
            (2) the requirements of section 203 (e)(2) and (e)(3) of 
        such Act, as amended by subsections (a) and (b), respectively, 
        if the Secretary gives the local government and designated 
        State agency 60 days to express interest in the project, and 
        for those that express interest within the 60-day period, and 
        substantiate such interest if requested, 90 days from the date 
        of notification of the terms and conditions of the disposition 
        plan to make an offer to purchase the project.

   repeal state agency multifamily property disposition demonstration

    Sec. 103. Section 184 of the Housing and Community Development Act 
of 1987 is hereby repealed.

demonstration: rtc marketing and disposition of multifamily properties 
                              owned by hud

    Sec. 104. (a) The Secretary of Housing and Urban Development may 
carry out a demonstration with up to 50 multifamily properties owned by 
the Secretary, using the Resolution Trust Corporation (RTC) for the 
marketing and disposition of the properties. Any such demonstration 
shall be carried out by agreement of the RTC and the Secretary on such 
terms and conditions as are acceptable to the RTC and the Secretary. 
The RTC shall establish policies and procedures for marketing and 
disposition, subject to review and approval by the Secretary.
    (b) The Secretary may waive the requirements of section 203 of the 
Housing and Community Development Amendments of 1978 and any related 
requirements, including restrictions on the incomes of families 
occupying the units and requirements for continued assistance. The 
Secretary may also waive any other statutory and regulatory 
requirements that apply to the project and that the Secretary 
determines are not consistent with the purposes of a demonstration, 
except that the Secretary may not waive any equal opportunity or 
nondiscrimination statutory or regulatory requirements or procedures.
    (c) In determining which properties to include in the 
demonstration, the Secretary shall take into consideration the size of 
the inventory of properties owned by the Secretary in the locality and 
such other factors as the Secretary determines are appropriate.
    (d) The Secretary shall reimburse the RTC for the direct costs 
associated with the demonstration, including the costs of 
administration and marketing, property management, and any repair and 
rehabilitation. The Secretary may use proceeds from the sale of the 
properties to reimburse the RTC for its costs.
    (e) The demonstration under this section shall--
            (1) be approved personally by the Secretary;
            (2) taken as a whole over the life of the demonstration, 
        not result in higher costs to the Federal Government;
            (3) be generally consistent with the overall purposes of 
        the program or programs under which the waiver is granted;
            (4) be the subject of an evaluation plan for which funding 
        is obligated or set aside at the same time the demonstration is 
        approved and which will be carried out by an independent party; 
        the evaluation shall include an assessment of the impact and 
        effectiveness of (A) any requirements waived pursuant to 
        subsection (b), and (B) any differences between the property 
        disposition procedures of the RTC and the Secretary; and
            (5) be consistent with the Fair Housing Act, title VI of 
        the Civil Rights Act of 1964, section 504 of the Rehabilitation 
        Act of 1973, and the Age Discrimination Act of 1975.
    (f) In approving the demonstration under this section, the 
Secretary may impose such requirements as the Secretary considers to be 
appropriate to further its purposes.
    (g) The RTC shall submit an annual progress report to the 
Secretary. The Secretary shall submit a report to Congress within one 
year after completion of the demonstration, describing the results of 
the demonstration and making any recommendations for legislation.
    (h) The demonstration under this section shall not extend beyond 
the termination date of the Resolution Trust Corporation.
    (i) There is authorized to be appropriated $1,000,000 for the 
evaluation of the demonstration under this section.

 authorize civil money penalties against general partners and certain 
                managing agents of multifamily projects

    Sec. 105. (a) Section 537 of the National Housing Act is amended--
            (1) in subsection (b)(1), by inserting after ``mortgagor'' 
        the second place it appears the following: ``or general partner 
        of a partnership mortgagor'';
            (2) in the heading to subsection (c), by deleting 
        ``Violations of Regulatory Agreement'' and inserting in lieu 
        thereof the following: ``Other Violations'';
            (3) in subsection (c)(1)--
                    (A) by deleting ``any mortgagor of property'' and 
                all that follows through ``as follows:'' and inserting 
                in lieu thereof the following:
                    ``(A) any mortgagor of property that includes five 
                or more living units and that has a mortgage insured, 
                coinsured, or held pursuant to this Act;
                    ``(B) the general partner of a partnership 
                mortgagor;
                    ``(C) any agent employed to manage the property 
                that has an identity of interest with the general 
                partner; or
                    ``(D) any independent fee management entity, under 
                contract with the mortgagor or general partner of a 
                partnership mortgagor, that fails to notify the 
                Secretary, as required by the Secretary, that it has 
                been instructed by the mortgagor or general partner of 
                a partnership mortgagor to engage in activities that 
                are contrary to regulations and requirements of the 
                Secretary. A penalty may be imposed under this section 
                for knowingly and materially taking any of the 
                following actions:'';
                    (B) by adding after subparagraph (L) the following 
                new subparagraphs:
                    ``(M) Failure, when there is adequate project 
                income available, to maintain the premises, 
                accommodations, and the grounds and equipment 
                appurtenant thereto in good repair and condition in 
                accordance with regulations and requirements of the 
                Secretary.
                    ``(N) Failure, by a general partner of a 
                partnership mortgagor, to provide management for the 
                project that is acceptable to the Secretary pursuant to 
                regulations and requirements of the Secretary.'';
                    (C) in the last sentence, by deleting ``of such 
                agreement'' and inserting in lieu thereof the 
                following: ``of this subsection''; and
                    (D) by redesignating subparagraphs (A) through (N) 
                as clauses (i) through (xiv), respectively;
            (4) in subsection (d)(1)(B), by inserting after 
        ``mortgagor'' the following: ``, general partner of a 
        partnership mortgagor, or agent employed to manage the property 
        or independent fee management entity as described in 
        subsections (c)(1) (C) and (D), respectively,'';
            (5) in subsection (e)(1), by deleting ``a mortgagor'' and 
        inserting in lieu thereof the following: ``an entity or 
        person'';
            (6) in subsection (f), by inserting after ``mortgagor'' 
        both times that it appears the following: ``, general partner 
        of a partnership mortgagor, or agent employed to manage the 
        property or independent fee management agent as described in 
        subsections (c)(1) (C) and (D), respectively,''; and
            (7) by amending the heading to read as follows: ``Civil 
        Money Penalties Against Multifamily Mortgagors, General 
        Partners of Partnership Mortgagors, and Managing Agents''.
    (b) The amendments made by subsection (a) shall apply only with 
respect to--
            (1) violations that occur on or after the effective date of 
        this section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary of Housing and Urban Development), any portion of 
        a violation that occurs on or after such date.

  extend hud review period for approval of management improvement and 
                            operating plans

    Sec. 106. Section 201(d)(6) of the Housing and Community 
Development Amendments of 1978 is amended by striking ``30'' and 
inserting ``120''.

            use of flexible subsidy in preservation projects

    Sec. 107. (a) Use of Assistance.--Section 201(k) of the Housing and 
Community Development Amendments of 1978 is amended by adding at the 
end thereof the following new paragraph:
            ``(4) In providing, and contracting to provide, assistance 
        for capital improvements under this section, the Secretary 
        shall give priority to projects that are eligible for 
        incentives under section 224(b) of the Emergency Low Income 
        Housing Preservation Act of 1987. The Secretary may make such 
        assistance available on a noncompetitive basis.''.
    (b) Certain Uninsured Projects.--Section 201(n)(2) of such Act is 
amended by inserting a comma immediately after ``insured mortgages in 
force'' and the following: ``projects for which the Secretary holds the 
mortgage, and projects with respect to which the Secretary makes 
interest reduction payments under section 236(o) of the National 
Housing Act''.

  delete requirement to reduce interest rates to avoid foreclosure on 
                           assigned mortgages

    Sec. 108. Section 7(i)(5) of the Department of Housing and Urban 
Development Act is amended by striking out the first semicolon, and all 
that follows through ``as determined by the Secretary''.

                 TITLE II--ENHANCE PROGRAM FLEXIBILITY

    Subtitle A--Office of Public and Indian Housing Freeze Fees for 
         Administration of the Certificate and Voucher Programs

    Sec. 201. Notwithstanding the second sentence of section 8(q)(1) of 
the United States Housing Act of 1937, other applicable law, and any 
implementing regulations and related requirements, the fee for the 
ongoing costs of administering the certificate and housing voucher 
programs under sections 8(b) and 8(o) of such Act for Federal fiscal 
year 1994 shall be based on the fair market rents for Federal fiscal 
year 1993. However, the Secretary may increase the fee in accordance 
with the third sentence of section 8(q)(1) and sections 8(q)(2) (ii) 
and (iii) of such Act.

          revitalization of severely distressed public housing

    Sec. 202. (a) Severely Distressed Public Housing.--Section 24 of 
the United States Housing Act of 1937 is amended as provided by this 
subsection.
            (1) Delete requirement for designation of eligible 
        projects.--
                    (A) Subsection (b) is hereby repealed.
                    (B) Subsection (i)(2) is hereby repealed and the 
                following paragraphs redesignated accordingly.
            (2) Increase planning grant dollar cap.--Subsection (c)(2) 
        is amended by striking ``$200,000'' and inserting ``$500,000''.
            (3) Planning grant eligible activities: community 
        service.--Subsection (c)(3) is amended by inserting the 
        following new subparagraph after subparagraph (D) and 
        redesignating the following subparagraphs accordingly:
                    ``(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 (community service is a required element of 
                the revitalization program);''.
            (4) Planning grant application: community service.--
        Subsection (c)(4) is amended by inserting the following new 
        subparagraph after subparagraph (C) and redesignating the 
        following subparagraphs accordingly:
                    ``(D) 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;''.
            (5) Implementation grant eligible activities.--
                    (A) Subsection (d)(2) is amended by inserting the 
                following new subparagraphs after subparagraph (D) and 
                redesignating the following subparagraphs accordingly:
                    ``(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 
                (community service is a required element of the 
                revitalization program); and
                    ``(F) replacement of public housing units, when 
                required under section 18, through the use of 
                implementation grant funds for the development of 
                replacement units provided through the methods 
                permitted under section 18(b)(3);''.
                    (B) Subsection (d)(2)(K), as redesignated by 
                subparagraph (A) of this paragraph, is amended by--
                            (i) striking ``than 15 percent'' and 
                        inserting ``than 20 percent''; and
                            (ii) inserting before the period the 
                        following: ``and provided that an amount equal 
                        to 15 percent of the amount of any grant under 
                        this subsection used for support services shall 
                        be contributed from non-Federal sources (this 
                        contribution shall 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)''.
            (6) Implementation grant applications: community service.--
        Subsection (d)(3) is amended by inserting the following new 
        subparagraph after subparagraph (C) and redesignating the 
        following subparagraphs accordingly:
                    ``(D) 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;''.
            (7) Planning grant and implementation grant selection 
        criteria: national geographic diversity.--Subsections (c)(5) 
        and (d)(4) are each amended by--
                    (A) striking subparagraph (E) and redesignating the 
                following subparagraphs accordingly; and
                    (B) inserting at the end the following new flush 
                matter:
        ``The Secretary may select a lower-rated, approvable 
        application over a higher-rated application to increase the 
        level of national geographic diversity of applications approved 
        under this section.''.
            (8) Implementation grant selection criteria.--Subsection 
        (d)(4)(D) is amended by striking ``the potential of the 
        applicant for developing a successful and affordable'' and 
        inserting ``the quality of the proposed''.
            (9) Definitions.--(A) Subsection (h)(5) is amended to read 
        as follows:
            ``(5) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public housing 
        project or a 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 of major systems, and other deficiencies 
                in the physical plant of the project; and
                    ``(B)(i)(I) is 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; and
                    ``(C) cannot 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 funds; and
                    ``(D) in the case of individual buildings, the 
                building is, in the Secretary's determination, 
                sufficiently separable from the remainder of the 
                project to make use of the building feasible for 
                purposes of this section.''.
            (B) Subsection (h) is amended by adding the following new 
        paragraphs at the end thereof:
            ``(6) 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.
            ``(7) Support services.--The term `support services' 
        includes all activities designed to lead toward upward 
        mobility, self-sufficiency, and improved quality of life for 
        the residents of the project, such as literacy training, job 
        training, day care, and economic development, and may include 
        such activities for residents of the neighborhood.''.
    (b) Conforming Amendment.--The first sentence of section 25(m)(1) 
of the United States Housing Act of 1937 is amended to read as follows: 
``The term `eligible housing' means a public housing project, or one or 
more buildings within a project, that is owned or operated by a 
troubled public housing agency.''.
    (c) Comprehensive Grant and Development Grants for Replacement 
Housing.--(1) Section 5(a)(2) of the United States Housing Act of 1937 
is amended by adding the following new sentence at the end thereof: 
``In providing assistance under this paragraph, the Secretary may give 
priority to public housing agencies that use comprehensive grants under 
section 14(k) for replacement housing under section 18(b)(3)(A).''
    (2) Section 14 of such Act is amended by adding the following new 
subsection at the end thereof:
    ``(q) The Secretary may authorize a public housing agency to use 
assistance allocated to it for use under subsection (e) for the 
development of additional housing under this Act, in accordance with 
requirements applicable to the development of public housing, to 
provide replacement housing as required by section 18.''.
    (d) Use of Tenant-Based Assistance for Replacement Housing.--(1) 
Section 18(b)(3)(A) of such Act is amended--
            (A) by striking ``or'' at the end of clause (v);
            (B) by redesignating clause (vi) as clause (vii); and
            (C) by inserting the following new clause immediately after 
        clause (v):
                    ``(vi) the use of five-year tenant-based assistance 
                under section 8(b) or (o) if--
                            ``(I) the project has been vacant for a 
                        period of at least five years;
                            ``(II) the proposed demolition is necessary 
                        for revitalization of the remaining units in 
                        the project; or
                            ``(III) demolition of the entire project is 
                        proposed and some or all of the units will be 
                        replaced on the site; or''.
    (2) Section 18(b)(3) of such Act is amended--
            (A) in subparagraph (A)(v), by striking ``to the extent 
        available'' and all that follows through ``5 years''; and
            (B) in subparagraph (C), by adding the following new flush 
        matter at the end thereof:
``Provided, That notwithstanding the other provisions of this 
subparagraph, if the plan involves (I) a demolition described in 
subparagraph (A)(vi) or (II) the demolition of 200 or more units, 
tenant-based assistance under section 8(b) or (o) may be approved if 
the public housing agency determines, in accordance with such 
requirements as the Secretary may prescribe, that such use is feasible 
and appropriate to meeting the low-income housing needs in the 
community;''.
    (3) Section 18(c)(2) of such Act is amended by inserting before the 
period at the end of the first sentence a comma and the following: 
``except for amounts to be provided from the allocation of 
comprehensive grant assistance to the public housing agency under 
section 14''.
    (e) Need for Replacement Housing.--The flush matter at the end of 
section 18(b)(3) of such Act is amended--
            (1) by striking ``except that,'' and inserting in lieu 
        thereof the following: ``except that (1)''; and
            (2) by inserting immediately before the period at the end 
        thereof the following: ``, and (2) a public housing agency may 
        demolish public housing dwelling units without providing an 
        additional unit for each unit to be demolished if there is no 
        need for additional assisted housing in the community, as 
        determined in accordance with criteria determined by the 
        Secretary''.
    (f) Replacement Housing Outside the Jurisdiction of the PHA.--
Section 18(b)(3) of such Act is amended by inserting the following new 
subparagraph after subparagraph (C), and redesignating the following 
subparagraphs accordingly:
            ``(D) may provide that all or part of such additional 
        dwelling units may be located outside the jurisdiction of the 
        public housing agency (the `original agency') if--
                    ``(i) the location is in the same housing market 
                area as the original agency, as determined by the 
                Secretary;
                    ``(ii) the plan contains an agreement between the 
                original agency and the public housing agency in the 
                alternate location or other public or private entity 
                that will be responsible for providing the additional 
                units in the alternate location (`alternate agency or 
                entity') that the alternate agency or entity will, with 
                respect to the dwelling units involved--
                            ``(I) provide the dwelling units in 
                        accordance with subparagraph (A) of this 
                        paragraph;
                            ``(II) complete the plan on schedule in 
                        accordance with subparagraph (F) of this 
                        paragraph;
                            ``(III) meet the requirements of 
                        subparagraph (G) of this paragraph and the 
                        maximum rent provisions of subparagraph (H) of 
                        this paragraph; and
                            ``(IV) not impose a local residency 
                        preference on any resident of the jurisdiction 
                        of the original agency for purposes of 
                        admission to any such units; and
                    ``(iii) the arrangement is approved by the unit of 
                general local government for the jurisdiction in which 
                the additional units will be located.''.

   disallowance of earned income for residents who obtain employment

    Sec. 203. (a) Disallowance of Earned Income From Public Housing 
Rent Determinations.--
            (1) In general.--Section 3 of the United States Housing Act 
        of 1937 is amended by striking the undesignated paragraph at 
        the end thereof and inserting in lieu thereof the following new 
        subsection:
    ``(d) Disallowance of Earned Income From Public Housing Rent 
Determinations.--Notwithstanding any other provision of law, 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 not be 
increased as a result of the increased income due to such employment 
for a period of 18 months, beginning with the commencement of 
employment.''.
            (2) Applicability of amendment.--Notwithstanding the 
        amendment made by paragraph (1), any resident of public housing 
        participating in the authority contained in such undesignated 
        paragraph immediately before its amendment by this section 
        shall continue to be governed by such authority.
    (b) Repealer.--Section 957 of the Cranston-Gonzalez National 
Affordable Housing Act is hereby repealed.

             ceiling rents based on reasonable rental value

    Sec. 204. (a) Section 3(a)(2)(A)(iii) of the United States Housing 
Act of 1937 is amended to read as follows:
            ``(iii) is not less than the reasonable rental value of the 
        unit, as determined by the Secretary.''.
    (b) The Secretary shall, by notice published in the Federal 
Register, 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). The notice shall also invite 
public comments, and the Secretary shall issue final regulations based 
on the initial notice, taking into account any public comments 
received.

   Subtitle B--Office of Community Planning and Development Economic 
                       Revitalization Initiative

    Sec. 210. (a) Economic Revitalization Grants.--(1) Section 108(a) 
of the Housing and Community Development Act of 1974 is amended by 
striking the second sentence and inserting in lieu thereof the 
following: ``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).''.
    (2) Section 108 of such Act is further amended by adding at the end 
thereof the following new subsection:
    ``(q)(1) The Secretary is authorized to use amounts deobligated 
under section 119 to provide grants in accordance with this subsection 
for economic revitalization projects to eligible public entities (units 
of general local government) in connection with notes or other 
obligations guaranteed for such entities under this section.
    ``(2) By regulation, the Secretary shall prescribe the terms and 
conditions of these grants (in accordance with this title, except as 
otherwise permitted by this subsection), including guidelines related 
to economic revitalization projects eligible for grants, the amount of 
grant funds to be provided for specific economic revitalization 
projects applied for, and requirements applicable to the use of the 
grant and the guaranteed loan proceeds by the recipient. The 
regulations shall at a minimum implement the provisions specified in 
this subsection.
    ``(3) The proceeds of the guaranteed loan, and the grant under this 
subsection, shall be used to finance economic development activities 
and projects eligible under subsection (a) and specified in the 
approved application. In this subsection, the term ``economic 
revitalization projects'' refers to such eligible economic development 
projects and activities.
    ``(4) If the eligible public entity proposes a grant under this 
subsection, it shall submit its request to HUD, in the form prescribed 
by HUD, with or as part of its application for loan guarantee 
assistance under this section.
    ``(5) To the extent funds are available, grants under this 
subsection shall be approved on a first-come, first-served basis.''.
    (3) Section 119(o) of such Act is amended by striking ``shall be'' 
and all that follows up to the period and inserting in lieu thereof the 
following: ``shall, as determined by the Secretary, be added to amounts 
appropriated under section 103 or be used to provide grants under 
section 108(q)''.
    (4) Title I of such Act is amended--
            (A) in the second sentence of section 101(c), by striking 
        ``and, if applicable, the funds received as a result of a 
        guarantee under section 108,'' and by inserting in lieu therof 
        ``(including any such funds used to make payments on a loan 
        guaranteed by the Secretary under section 108) and, if 
        applicable, any grant received under section 108(q),'' and
            (B) in section 104(b)(3), by striking ``and, if applicable, 
        as a result of a guarantee under section 108,'' and by 
        inserting in lieu thereof ``(including any such funds used to 
        make payments on a loan guaranteed by the Secretary under 
        section 108) and, if applicable, any grant received under 
        section 108(q),''.
    (b) Section 108 Loan Guarantees for Colonias.--The first sentence 
of section 108(a) of the Housing and Community Development Act of 1974 
is amended--
            (1) by striking ``or'' immediately after ``section 
        105(a);''; and
            (2) by inserting immediately before the period at the end 
        thereof the following: ''; or (5) activities under section 
        105(a)(2) with respect to colonias under section 916 of the 
        Cranston-Gonzalez National Affordable Housing Act''.
    (c) Guarantee of Obligations Backed by Section 108 Loans.--Section 
108 of the Housing and Community Development Act of 1974 is amended by 
adding at the end thereof the following new subsection:
    ``(r)(1) The Secretary is authorized, upon such terms and 
conditions as the Secretary deems appropriate, to guarantee the timely 
payment of the principal of and interest on such trust certificates or 
other obligations as shall--
            ``(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) 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 which may be required to be paid under any guarantee by the 
Secretary under this subsection.
    ``(3) In the event the Secretary pays a claim under a guarantee 
issued under this section, it shall be subrogated fully to the rights 
satisfied by such payment.
    ``(4) 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 by any means deemed appropriate 
        by the Secretary any such contract, and
            ``(C) the Secretary's ownership rights, 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.''.

                      home investment partnerships

    Sec. 211. (a) Participation by State Agencies or 
Instrumentalities.--Section 104(2) of the Cranston-Gonzalez National 
Affordable Housing Act is amended--
            (1) by striking ``and''; and
            (2) by inserting before the period at the end thereof 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 jurisdiction with 
        regard to provisions of this Act''.
    (b) Simplify Program-wide Income Targeting for Home Rental 
Housing.--Sections 214(1) (A) and (B) of such Act are amended by 
striking ``such funds are invested with respect to dwelling units that 
are occupied by'' each place it appears and inserting in lieu thereof 
the following: ``(i) the families receiving such rental assistance are, 
or (ii) the dwelling units assisted with such funds are occupied by,''.
    (c) Remove First-time Homebuyer Limitation for Home Units.--Section 
215(b) of such Act is amended by striking paragraph (3) and 
redesignating paragraphs (4) and (5) as paragraphs (3) and (4), 
respectively.
    (d) Simplify Resale Provisions.--Section 215(b)(4)(B) of such Act 
is amended by striking ``subsection'' and inserting in lieu thereof 
``title''.
    (e) Stabilization of Home Funding Thresholds.--
            (1) Sections 216(10) and 217(b)(4) of such Act are hereby 
        repealed.
            (2) Section 217(b)(3) of such Act is amended--
                    (A) in the first sentence, by striking ``only those 
                jurisdictions'' and all that follows up to the period 
                and inserting in lieu thereof the following: 
                ``jurisdictions that are not participating 
                jurisdictions that are allocated an amount of $500,000 
                or greater and jurisdictions that are participating 
                jurisdictions shall receive an allocation''; and
                    (B) in the last sentence, by striking ``, except as 
                provided in paragraph (4)''.
            (3) Section 216 of such Act is amended--
                    (A) in paragraph (3), by striking ``Except as 
                provided in paragraph (10), a jurisdiction'' in the 
                first sentence and inserting in lieu thereof ``A 
                jurisdiction''; and
                    (B) in paragraph (9)(B), by striking ``, except as 
                provided in paragraph (10)''.
    (f) Comprehensive Affordable Housing Strategy.--
            (1) Home program.--The first sentence of section 218(d) of 
        such Act is amended by inserting immediately after ``providing 
        certification'' the following: ``that it is following a current 
        housing affordability strategy which has been approved by the 
        Secretary in accordance with section 105, and''.
            (2) Homeless assistance programs.--
                    (A) In general.--Section 401 of the Stewart B. 
                McKinney Homeless Assistance Act is amended to read as 
                follows:

                    housing affordability strategy.

    ``Sec. 401. (a) Requirement To Follow a CHAS.--Assistance may be 
made available Under subtitle B to metropolitan cities, urban counties, 
and States receiving a formula amount under section 413, only if the 
jurisdiction certifies that it is following a current housing 
affordability strategy which has been approved by the Secretary in 
accordance with section 105 of the Cranston-Gonzalez National 
Affordable Housing Act.
    ``(b) Requirement for Consistency With CHAS.--Assistance may be 
made available under this title only if the application contains a 
certification that the proposed project or activities are consistent 
with the housing strategy of the State or unit of general local 
government in which the project is located. The certification shall be 
from the public official responsible for submitting the strategy for 
the jurisdiction.''.
                    (B) Conforming changes.--Title IV of such Act is 
                amended by striking sections 426(a)(2)(F), 434(a)(10), 
                and 454(b)(9).
    (g) Simplify Home Matching Requirements.--Section 220 of the 
Cranston-Gonzalez National Affordable Housing Act 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 jurisdictions's HOME Investment 
Trust Fund in that fiscal year. This contribution shall be in addition 
to any amounts made available under section 216(3)(A)(ii).''.
    (h) Delete Separate Audit Requirement for the Home Program.--
Section 283 of such Act is amended--
            (1) by striking the section heading and inserting in lieu 
        thereof the following: ``audits by the comptroller general.'';
            (2) by striking subsection (a);
            (3) by striking ``(b) Audits by the Comptroller General.--
        '' and redesignating paragraphs (1) and (2) as subsections (a) 
        and (b), respectively; and
            (4) in subsection (a), as redesignated by paragraph (3), by 
        striking the second sentence.
    (i) Home Environmental Review Amendments.--Section 288 of such Act 
is amended--
            (1)(A) in the first sentence of subsection (a), by striking 
        out ``participating jurisdictions'' and inserting in lieu 
        thereof the following: ``jurisdictions, Indian tribes, or 
        insular areas''; and
            (B) in the first sentence of subsection (b) and in 
        subsection (c)(4), by striking ``participating jurisdiction'' 
        each place it appears and inserting in lieu thereof the 
        following: ``jurisdiction, Indian tribe, or insular area''; and
            (2) by inserting at the end of subsection (a) the following 
        new sentences: ``The regulations shall, among other matters, 
        provide for the monitoring of the performance of environmental 
        reviews under this section and, in the discretion of the 
        Secretary, for the provision of facilitation of training for 
        such performance and suspension or termination of the 
        assumption under this section. The Secretary's duty under the 
        foregoing sentence shall not be construed as being in 
        derogation of any responsibility assumed by a State or unit of 
        general local government with respect to any particular release 
        of funds.'';
            (3) in subsection (d), by striking out ``Assistance to a 
        State.--In the case of assistance to States'' and inserting in 
        lieu thereof 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''.
    (j) Use of CDBG Funds for Home Administrative Expenses.--Section 
105(a)(13) of the Housing and Community Development Act of 1974 is 
amended by inserting immediately after ``charges related to'' the 
following:
            ``(A) administering the HOME program under title II of the 
        Cranston-Gonzalez National Affordable Housing Act and (B)''.
    (k) Project Delivery Costs.--Section 105(a)(21) of such Act is 
amended by--
            (1) inserting immediately after ``housing counseling'' the 
        following: ``in connection with tenant-based rental assistance 
        and affordable housing projects assisted under title II of the 
        Cranston-Gonzalez National Affordable Housing Act''; and
            (2) striking ``authorized'' and all that follows through 
        ``law'' and inserting in lieu thereof the following: ``assisted 
        under title II of the Cranston-Gonzalez National Affordable 
        Housing Act''.

             reduce hope 3 match requirement to 25 percent

    Sec. 212. Section 443(c)(1) of the Cranston-Gonzalez National 
Affordable Housing Act is amended by striking ``33'' and inserting 
``25''.

    Subtitle C--Community Partnerships Against Crime Compac Program

    Sec. 220. (a) Conforming Provisions.--(1) Section 5001 of the Anti-
Drug Abuse Act of 1988 is amended--
            (A) by striking

      ``Chapter 2--Public and Assisted Housing Drug Elimination''

        and inserting in lieu thereof the following:

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

            (B) by striking ``Congressional findings.'' and inserting 
        in lieu thereof the following: ``Purposes.''; and
            (C) by adding after

``Sec. 5130. Authorization of appropriations.''
        the following:

``Sec. 5131. Technical assistance.''.
            (2) The heading for chapter 2 of subtitle C of title V of 
        the Anti-Drug Abuse Act of 1988 is amended to read as follows:

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

    (b) Short Title, Purposes, and Authority To Make Grants.--Sections 
5121, 5122, and 5123 of the Public and Assisted Housing Drug 
Elimination Act of 1990 are amended to read as follows:

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1993'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) substantially expand and enhance the Federal 
        Government's commitment to eliminating crime in public housing;
            ``(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.

    ``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 (1) to public housing agencies (including 
Indian housing authorities) and (2) using amounts appropriated for 
fiscal year 1994 only, to private, for-profit and nonprofit owners of 
federally assisted low-income housing. In designing the program, the 
Secretary shall consult with the Attorney General.''.
    (c) Eligible Activities.--Section 5124 of such Act is amended--
            (1) by striking ``(a) Public and Assisted Housing.--'';
            (2) by inserting in the introductory material, immediately 
        after ``used in'', the following: ``and around'';
            (3) in paragraph (3), by inserting immediately before the 
        semicolon the following: ``, such as fencing, lighting, 
        locking, and surveillance systems'';
            (4) by striking paragraph (4)(A) and inserting in lieu 
        thereof the following new subparagraph:
                    ``(A) to investigate crime; and'';
            (5) in paragraph (6)--
                    (A) by striking ``in and around public or other 
                federally assisted low-income housing projects''; and
                    (B) by striking ``and'' after the semicolon;
            (6) in paragraph (7)--
                    (A) by striking ``where a public housing agency 
                receives a grant,'';
                    (B) by striking ``drug abuse'' and inserting in 
                lieu thereof ``crime''; and
                    (C) by striking the period at the end and inserting 
                in lieu thereof a colon;
            (7) by adding the following new paragraphs after paragraph 
        (7):
            ``(8) the employment or utilization of one 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) youth initiatives, such as activities involving 
        training, education, after school programs, cultural programs, 
        recreation and sports, career planning, and entrepreneurship 
        and employment; and
            ``(10) resident service programs, such as job training, 
        education programs, and other appropriate social services which 
        address the contributing factors of crime.''; and
            (8) by striking subsection (b).
    (d) Applications.--Section 5125 of such Act is amended--
            (1) in subsection (a)--
                    (A) by adding the paragraph designation ``(1)'' 
                immediately after ``In General.--'';
                    (B) in the first sentence, by striking ``, a public 
                housing resident management corporation,'';
                    (C) in the second sentence, by striking ``drug-
                related crime on the premises of'' and inserting in 
                lieu thereof the following: ``crime in and around''; 
                and
                    (D) by adding the following new paragraphs at the 
                end:
            ``(2) The Secretary shall, by regulation issued after 
        notice and opportunity for public comment, set forth criteria 
        for establishing a class of public housing agencies that have 
        especially severe crime problems. Any public housing agency 
        within this class may submit an application for a one-year 
        grant under this chapter that, subject to the availability of 
        appropriated amounts, shall be renewed for a period not 
        exceeding the four subsequent years: Provided, That the 
        Secretary finds, 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 
        and meets such other requirements as the Secretary may 
        prescribe.
            ``(3) Any eligible applicant may submit an application for 
        a grant for a period of up to two years. The Secretary may 
        accord a preference to applications seeking a subsequent grant 
        under this paragraph if the grant is to be used to continue or 
        expand activities assisted under a previous grant under this 
        paragraph and the Secretary finds that the applicant's program 
        under the prior grant is being managed soundly and demonstrates 
        success. Any preferences under the preceding sentence shall not 
        unreasonably prejudice the opportunities of other public 
        housing agencies to be awarded grants under this paragraph.'';
            (2) in subsection (b)--
                    (A) in the introductory material, by striking 
                ``subsections (c) and (d)'' and inserting in lieu 
                thereof ``subsections (a) and (c)'';
                    (B) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting in lieu thereof the 
                following: ``crime problem in and around'';
                    (C) in paragraph (2), by inserting immediately 
                after ``crime problem in'' the following: ``and 
                around''; and
                    (D) 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'' the 
        two places it appears; and
            (4) by striking subsection (d).
    (e) Definitions.--Section 5126 of such Act is amended by striking 
paragraphs (1) and (2), and renumbering paragraphs (3) and (4) as 
paragraphs (1) and (2), respectively.
    (f) Implementation.--Section 5127 of such Act is amended by 
striking ``Cranston-Gonzalez National Affordable Housing Act'' and 
inserting in lieu thereof ``Housing and Community Development Act of 
1993''.
    (g) Reports.--Section 5128 of such Act is amended by striking 
``drug-related crime in'' and inserting in lieu thereof the following: 
``crime in and around''.
    (h) Authorization of Appropriations.--Section 5130 of such Act is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``$175,000,000 for fiscal year 1993'' and all that follows and 
        inserting in lieu thereof: $265,000,000 for fiscal year 1994 
        and $325,000,000 for fiscal year 1995.'';
            (2) in subsection (b)--
                    (A) by striking ``set-asides'' and inserting in 
                lieu thereof ``set-aside'';
                    (B) by striking the first sentence;
                    (C) by striking ``drug elimination'';
                    (D) by striking ``fiscal years 1993 and 1994'' and 
                inserting in lieu thereof ``fiscal year 1994''; and
                    (E) by striking ``and 5.0 percent'' and all that 
                follows through the end of the sentence and inserting 
                in lieu thereof a period; and
            (3) by striking subsection (c) and section 520(k) of the 
        Cranston-Gonzalez National Affordable Housing Act.
    (i) Technical Assistance.--Such Act is further amended by adding at 
the end thereof the following new section:

``SEC. 5131. TECHNICAL ASSISTANCE.

    ``Of the amounts appropriated annually for each of fiscal years 
1994 and 1995 to carry out this chapter, the Secretary is authorized to 
use up to $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. Such technical assistance may include 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. The Secretary 
is also authorized to use the foregoing amounts for obtaining 
assistance in establishing and managing assessment and evaluation 
criteria and specifications, and obtaining the opinions of experts in 
relevant fields.''.

               TITLE III--TECHNICAL AND OTHER AMENDMENTS

                Subtitle A--Public and Assisted Housing

   correct the definition of family in the 1937 act to clarify that 
             families are not required to include children

    Sec. 301. The first sentence of section 3(b)(3)(B) of the United 
States Housing Act of 1937 is amended by--
            (1) striking out ``means'' and inserting ``includes''; and
            (2) inserting ``and'' immediately after ``children,''.

   eliminate requirement for identification of ciap replacement needs

    Sec. 302. (a) Section 14(d) of the United States Housing Act of 
1937 is amended--
            (1) by striking paragraph (2); and
            (2) in paragraph (4)--
                    (A) by deleting ``and replacements,''; and
                    (B) by striking ``, (2),''.
    (b) Section 14(f)(1) of such Act is amended--
            (1) by striking subparagraph (B); and
            (2) in subparagraph (D), by striking ``, (2),''.

      applicability of public housing amendments to indian housing

    Sec. 303. (a) Section 201(b) of the United States Housing Act of 
1937 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) 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 of Housing and Urban Development and an 
Indian housing authority in accordance with section 201(b)(2) of such 
Act, as it existed before the effective date of this section.
    (c) The provisions of sections 103(a)(1), 112, 114, 116, 118, 903, 
and 927 of the Housing and Community Development Act of 1992 shall also 
apply to public housing developed or operated pursuant to a contract 
between the Secretary of Housing and Urban Development and an Indian 
housing authority.

  increase the unit threshold above which phas are required to adopt 
                        project-based accounting

    Sec. 304. Section 6(c)(4)(E) of the United States Housing Act of 
1937 is amended by striking ``250'' and inserting in lieu thereof 
`500''.

                    Subtitle B--Multifamily Housing

             correct errors in multifamily mortgage limits

    Sec. 310. Sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), and 
234(e)(3) of the National Housing Act are each amended by striking 
``$59,160'' and inserting ``$56,160''.

       fha multifamily risk-sharing; hfa pilot program amendments

    Sec. 311. (a) Section 542(c) of the Housing and Community 
Development Act of 1992 is amended--
            (1) in paragraph (2)(C), by striking the last sentence and 
        inserting in lieu thereof the following new sentence: ``Such 
        agreements shall specify that the qualified housing finance 
        agency and the Secretary shall share any loss in accordance 
        with the risk-sharing agreement.'';
            (2) in paragraph (2)(E)--
                    (A) by inserting the clause designation ``(i)'' 
                before the first sentence;
                    (B) in the first sentence, by inserting after 
                ``subsection'' the following:'', except as provided in 
                this section,''; and
                    (C) by adding the following new paragraph 
                (2)(E)(ii):
                    ``(ii) The mortgage shall--
                            ``(I) provide for complete amortization by 
                        periodic payments within such terms as the 
                        Secretary shall prescribe;
                            ``(II) not exceed 40 years from the 
                        beginning of amortization; and
                            ``(III) not exceed a loan-to-value or loan-
                        to-replacement cost of 90 percent for profit-
                        motivated owners and 100 percent for nonprofit 
                        owners.'';
            (3) by adding the following new subparagraphs at the end of 
        paragraph (2):
                    ``(F) The Secretary, upon request of a qualified 
                housing finance agency, may insure and make commitments 
                to insure under this section any mortgage, advance, or 
                loan otherwise eligible under this section, pursuant to 
                a risk-sharing agreement providing that the housing 
                finance agency 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, cost certification, servicing, property 
                disposition, or other functions as the Secretary, 
                pursuant to regulations, 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) Qualified housing finance agencies 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 program 
                review and monitoring purposes.
                    ``(H) Notwithstanding any other provision of this 
                section, no new, existing, or rehabilitated multifamily 
                housing with respect to which a mortgage is insured 
                under this section 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, but 
                rental for any period less than 30 days shall in any 
                event constitute rental for such purposes.
                    ``(I) No mortgage with respect to multifamily 
                housing may be insured under this section unless--
                            ``(i) the mortgagor certifies under oath 
                        that while such insurance remains outstanding, 
                        he or she will not rent, or permit the rental 
                        of, such housing or any part thereof for 
                        transient or hotel purposes; and
                            ``(ii) the housing finance agency has 
                        entered into such contract with the mortgagor 
                        as the Secretary deems necessary to enable the 
                        housing finance agency to prevent or terminate 
                        any use of such property or project for 
                        transient or hotel purposes while the mortgage 
                        insurance remains outstanding.''; and
            (4) by adding at the end thereof the following new 
        paragraphs:
            ``(9) Environmental and other reviews.--
                    ``(A) NEPA.--
                            ``(i) In general.--(I) In order to assure 
                        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 commitments to insure mortgages 
                        under subsection (c)(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 regulations provide for 
                        commitments to insure mortgages under 
                        subsection (c)(2) upon the request of qualified 
                        housing finance agencies under this subsection 
                        if the States or units of general local 
                        governments, as designated by the Secretary in 
                        accordance with regulations, assume 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 commitment or endorsement of 
                        mortgage insurance 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 for monitoring of 
                        the performance of environmental reviews under 
                        this subparagraph and, in the discretion of the 
                        Secretary, for the provision or facilitation of 
                        training for such performance and suspension or 
                        termination of the assumption under clause (I). 
                        The Secretary's duty under the foregoing 
                        sentence shall not be construed as being in 
                        derogation of any responsibility assumed by a 
                        State or unit of general local government with 
                        respect to any particular property under clause 
                        (I).
                            ``(ii) Procedure.--The Secretary shall 
                        approve the commitment to insure subject to the 
                        procedures authorized by this paragraph only 
                        if, at least 15 days prior to such approval and 
                        prior to any commitment or endorsement of 
                        mortgage insurance on the property the 
                        qualified housing finance agency has submitted 
                        to the Secretary a request for such commitment 
                        to insure accompanied by a certification of the 
                        State or unit of general local government which 
                        meets the requirements of clause (iii). The 
                        Secretary's approval 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 those 
                        responsibilities relate to the commitment or 
                        endorsement of mortgage insurance on the 
                        property which 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.
                    ``(B) Lead-based paint poisoning prevention.--In 
                carrying out the requirements of section 302 of the 
                Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 
                4822), 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.--The requirements of section 102(d) of the 
                Department of Housing and Urban Development Reform Act 
                of 1989 shall be satisfied in connection with a 
                commitment to insure a mortgage under this subsection 
                by a certification by a qualified housing finance 
                agency to the Secretary that the combination of Federal 
                assistance provided in connection with a property for 
                which a mortgage is to be insured shall not be any more 
                than is necessary to provide affordable housing.
            ``(10) As used in this section--
                    ``(A) the term `mortgage' means a first mortgage on 
                real estate that is--
                            ``(i) owned in fee simple; or
                            ``(ii) on a leasehold--
                                    ``(I) under a lease for not less 
                                than 99 years which is renewable; or
                                    ``(II) under a lease having a 
                                period of not less than ten years to 
                                run beyond the maturity of the 
                                mortgage; and
                    ``(B) the term `first mortgage' means a single 
                first lien 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. 
                Any other financing permitted on property insured under 
                this section must be expressly subordinate to the 
                insured mortgage; and
                    ``(C) the terms `unit of general local government' 
                and `State' mean the same as defined in section 
                102(a)(1) and (2), respectively, of the Housing and 
                Community Development Act of 1974.''.
    (b) Section 544(1) is amended to read as follows:
            ``(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 
        five rental units on one site. These units may be detached, 
        semi-detached, row houses, or multifamily structures.''.

                        subsidy layering review

    Sec. 312. Section 911 of the Housing and Community Development Act 
of 1992 is amended by--
            (1) striking subsection (a) and inserting in lieu thereof 
        the following:
    ``(a) Certification of Subsidy Layering Compliance.--The 
requirements of section 102(d) of the Department of Housing and Urban 
Development Reform Act of 1989 shall be satisfied in connection with 
projects receiving assistance 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 Federal 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 more than is necessary to provide affordable 
housing.''; and
            (2) striking subsection (c) and inserting in lieu thereof 
        the following:
    ``(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 may inform the housing 
credit agency that it may no longer submit certification of subsidy 
layering compliance under this section. In such circumstances, the 
responsibilities of section 102(d) of the Housing and Urban Development 
Reform Act for affected projects allocated a low income housing tax 
credit pursuant to section 42 of the Internal Revenue Code of 1986 
shall be carried out by the Secretary.''.

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