[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2049 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2049

  To reduce homelessness, reform public housing, expand and preserve 
  affordable housing and homeownership, ensure fair housing for all, 
              empower communities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 26 (legislative day, April 11), 1994

 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 reduce homelessness, reform public housing, expand and preserve 
  affordable housing and homeownership, ensure fair housing for all, 
              empower communities, 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 
Choice and Community Investment Act of 1994''.
    (b) Table of Contents.--

                  TITLE I--ASSISTANCE FOR THE HOMELESS

    Subtitle A--Reorganization of the Stewart B. McKinney Homeless 
                             Assistance Act

Sec. 101. Short title.
Sec. 102. Findings and purposes.
Sec. 103. Definitions.
Sec. 104. Authorizations.
Sec. 105. Application.
Sec. 106. Eligible activities.
Sec. 107. Allocation and distribution of funds.
Sec. 108. Administration of program.
Sec. 109. Citizen participation.
Sec. 110. Reports, reviews, and audits.
Sec. 111. Nondiscrimination in programs and activities.
Sec. 112. Consultation.
Sec. 113. Records, reports, and audits.
Sec. 114. Reports to Congress.
Sec. 115. Innovative Homeless Program.
                 Subtitle B--Emergency Food and Shelter

Sec. 121. Transfer of the Emergency Food and Shelter Program from FEMA 
                            to HUD.
   TITLE II--PUBLIC AND INDIAN HOUSING; CROSS-CUTTING AUTHORIZATIONS

      Subtitle A--Enhance Flexibility for Public Housing Agencies

Sec. 201. Direct loans for modernization and replacement housing.
Sec. 202. Use of modernization funds for replacement housing.
Sec. 203. Facilitate use of public-private partnerships in modernizing 
                            public housing.
Sec. 204. Modification of the Early Childhood Development Program.
Sec. 205. Entrepreneurial PHA's and RMC's.
Sec. 206. Disallowance of earned income for residents who obtain 
                            employment.
Sec. 207. Ceiling rents based on reasonable rental value.
Sec. 208. Authorization to sell public housing to nonprofit 
                            organizations.
         Subtitle B--Severely Distressed Public Housing Program

Sec. 211. Revitalization of severely distressed public housing.
Sec. 212. Modernization Program reserve funds.
Sec. 213. Eligibility of severely distressed public housing for public 
                            housing operating subsidies.
Sec. 214. Applicability of section 24 and URD statute and rules.
                   Subtitle C--Anti-Crime Initiatives

Sec. 221. Community partnerships against crime.
Sec. 222. Authority for assisted housing owners and public housing 
                            agencies to ban guns.
Sec. 223. Make criminal records available for screening and evictions.
               Subtitle D--Authorizations and Extensions

Sec. 231. Low-income housing.
Sec. 232. Public housing operating subsidies.
Sec. 233. Family Self-Sufficiency Program.
Sec. 234. Public housing family investment centers.
Sec. 235. Revised Congregate Services Program.
Sec. 236. Indian Housing Loan Guarantee Program.
                       Subtitle E--Applicability

Sec. 241. Applicability of public housing amendments to Indian housing.
    TITLE III--HOMEOWNERSHIP; FHA MORTGAGE INSURANCE AUTHORIZATIONS

      Subtitle A--Expand Single Family Homeownership Opportunities

Sec. 301. Single family mortgage insurance in revitalization area.
Sec. 302. Maximum dollar amount for FHA single family mortgages.
Sec. 303. Streamlined refinancing for HUD-held mortgages.
Sec. 304. Innovative affordable housing demonstrations.
Sec. 305. Single Family Risk-Sharing Mortgage Insurance Program.
Sec. 306. Homeownership counseling and outreach.
         Subtitle B--National Homeownership Fund Demonstration

Sec. 311. Amendments to NAHA.
                       Subtitle C--Authorizations

Sec. 321. Flexible Subsidy Program.
Sec. 322. Service coordinators in multifamily housing.
Sec. 323. Limitation on GNMA guarantees for mortgage-backed securities.
Sec. 324. Limitation on FHA insuring authority.
    TITLE IV--ECONOMIC OPPORTUNITY; EXPANSION OF AFFORDABLE HOUSING

                    Subtitle A--Economic Opportunity

Sec. 401. Economic opportunities for residents in HUD-assisted 
                            programs.
Sec. 402. Resident Management/Tenant Opportunity Program.
                   Subtitle B--Section 8 Initiatives

Sec. 411. Choice in residency.
Sec. 412. Merger of the Certificate and Voucher programs.
Sec. 413. Section 8 certificate and voucher fees.
                       Subtitle C--Miscellaneous

Sec. 421. Section 811 rental assistance for persons with disabilities.
Sec. 422. Funding for supportive housing for the elderly and for 
                            persons with disabilities.
Sec. 423. Youthbuild.
Sec. 424. HOPE authorization of appropriations.
Sec. 425. Authorization of appropriations for Housing Opportunities for 
                            Persons with AIDS Program.
                  TITLE V--PRESERVATION AND PRODUCTION

Sec. 501. Miscellaneous amendments to LIHPRHA.
Sec. 502. Low-income housing preservation authorization of 
                            appropriations.
Sec. 503. FHA fund support of section 8 assistance for property 
                            disposition.
Sec. 504. HOME program loan guarantees.
Sec. 505. HOME authorization of appropriations.
Sec. 506. Extension of the section 221(g)(4) auction provisions.
Sec. 507. Extension of the multifamily mortgage credit demonstrations.
                     TITLE VI--EXPAND FAIR HOUSING

Sec. 601. Metropolitan areawide strategy demonstration.
Sec. 602. Expand use of amounts in section 213(d)(4) headquarters 
                            reserve in connection with settlement of 
                            civil rights litigation.
Sec. 603. Making CDBG expenditures on fair housing activities eligible 
                            activities in their own right.
Sec. 604. Fair Housing Initiatives Program authorization of 
                            appropriations.
Sec. 605. Civil money penalties for violations of the HOME Mortgage 
                            Disclosure Act by nonsupervised mortgagees.
            TITLE VII--COMMUNITY DEVELOPMENT AND EMPOWERMENT

  Subtitle A--Neighborhood Leveraged Investments for Tomorrow (LIFT) 
                                Program

Sec. 701. Authorization.
Sec. 702. Eligible neighborhoods.
Sec. 703. Eligible activities.
Sec. 704. Grants for neighborhood revitalization projects.
Sec. 705. Competitive grants for neighborhood revitalization projects.
Sec. 706. Records, reports, and audits.
Sec. 707. Training and information activities.
Sec. 708. Definitions.
                  Subtitle B--Community Viability Fund

Sec. 711. Program authorization.
Sec. 712. Savings provision.
                Subtitle C--Colonias Assistance Program

Sec. 721. Authorization.
Sec. 722. Eligible activities.
Sec. 723. Model programs.
Sec. 724. Competitive grants.
Sec. 725. Records, reports, and audits.
Sec. 726. Definitions.
Sec. 727. Extension of Colonia Program under section 916 of the 
                            Cranston-Gonzalez National Affordable 
                            Housing Act.
            Subtitle D--Zone Economic Development Initiative

Sec. 731. Authorization.
Sec. 732. Purpose.
Sec. 733. Eligible activities.
Sec. 734. Allocation of funds.
Sec. 735. Use in conjunction with loan guarantees.
Sec. 736. Records, reports, and audits.
Sec. 737. Funding authorization.
              Subtitle E--Authorizations of Appropriations

Sec. 741. Capacity building for community development and affordable 
                            housing.
Sec. 742. Community development block grants.
Sec. 743. Economic development initiative.
                     TITLE VIII--MANAGEMENT REFORM

        Subtitle A--Improve the Allocation and Use of Assistance

Sec. 801. Limit section 8 contract rent adjustments for rents above 
                            section 8 existing housing FMR's.
Sec. 802. Provide incentives to refinance high interest mortgages for 
                            section 8 projects.
Sec. 803. LMSA reforms.
Sec. 804. Reduce AAF for units where family has not moved since 
                            previous year.
Sec. 805. Preference for working families.
Sec. 806. Use of technical assistance funds by or for HUD staff.
            Subtitle B--Office of Public and Indian Housing

Sec. 811. Oversight, technical assistance, emergency action resources, 
                            and resident survey for public housing 
                            programs.
Sec. 812. Recapture of development amounts.
                     Subtitle C--Office of Housing

Sec. 821. Section 235 refinancing.
Sec. 822. Elimination of new activity in low-use FHA multifamily 
                            development programs.
Sec. 823. Indemnification for project managers.
        Subtitle D--Office of Community Planning and Development

Sec. 831. Management information systems.
Sec. 832. Use of UDAG recaptures.
    Subtitle E--Nonjudicial Foreclosure of Defaulted Single Family 
                               Mortgages

Sec. 841. Short title.
Sec. 842. Findings and purpose.
Sec. 843. Definitions.
Sec. 844. Applicability.
Sec. 845. Designation of Foreclosure Commissioner.
Sec. 846. Prerequisites to foreclosure.
Sec. 847. Notice of foreclosure sale.
Sec. 848. Commencement of foreclosure.
Sec. 849. Service of notice of foreclosure sale.
Sec. 850. Presale reinstatement.
Sec. 851. Conduct of sale; adjournment.
Sec. 852. Foreclosure costs.
Sec. 853. Disposition of sale proceeds.
Sec. 854. Transfer of title and possession.
Sec. 855. Record of foreclosure and sale.
Sec. 856. Effect of sale.
Sec. 857. Computation of time.
Sec. 858. Separability.
Sec. 859. Deficiency judgment.
                   TITLE IX--MISCELLANEOUS AMENDMENTS

Sec. 901. OFHEO assessment collection dates.
Sec. 902. Lead-based paint technical assistance amendments.
Sec. 903. Lead-based paint target housing hazard reduction program.
Sec. 904. HUD research and development.

                  TITLE I--ASSISTANCE FOR THE HOMELESS

    Subtitle A--Reorganization of the Stewart B. McKinney Homeless 
                             Assistance Act

                              short title

    Sec. 101. This subtitle may be cited as the ``Stewart B. McKinney 
Homeless Housing Assistance Reorganization Act of 1994''.

                         findings and purposes

    Sec. 102. (a) Findings.--The Congress finds that--
            (1) more Americans are homeless than at any time since the 
        Great Depression;
            (2) homeless populations differ in different parts of the 
        country and require different types of systems of varying 
        sophistication to meet the needs of those populations;
            (3) the best approach for addressing this situation is to 
        focus Federal homeless housing assistance on a ``continuum of 
        care''--a seamless process which moves the homeless from the 
        street into a system which provides outreach and assessment, 
        emergency shelter, transitional housing, and permanent housing;
            (4) the Stewart B. McKinney Homeless Assistance Act created 
        emergency programs to solve specific homeless problems as they 
        were identified, and has evolved into an ad hoc approach of 
        separate programs with separate means of distributing 
        assistance, separate rules, and separate reporting 
        requirements, which tax the resources of the Department of 
        Housing and Urban Development, local governments, and not-for-
        profit homeless providers;
            (5) the competitive process for distributing assistance 
        under these programs--
                    (A) restricts the flexibility of communities to 
                fashion homeless systems that meet the needs of 
                homeless persons in their areas;
                    (B) does not ensure that Federal resources are 
                targeted where the need is;
                    (C) results in unpredictable funding streams which 
                hinder communities' ability to plan, develop, and 
                implement comprehensive ``continuum of care'' systems 
                to assist homeless individuals and families; and
                    (D) impedes the integration and coordination of the 
                resources--Federal, private, not-for-profit, and local 
                government--available within a community; and
            (6) the current array of programs does not ensure that a 
        community will have the tools to create a ``continuum of care'' 
        to address its homeless needs.
    (b) Purposes.--The purposes of this subtitle are to--
            (1) reorganize the McKinney Act homeless housing assistance 
        authorities, to assist States and localities to use them more 
        efficiently and effectively through a comprehensive system 
        involving a ``continuum of care'' approach designed to meet the 
        shelter, service, and permanent housing needs of the Nation's 
        homeless individuals and families;
            (2) simplify and make more flexible the provision of 
        Federal homeless assistance;
            (3) encourage the cooperation and participation of the 
        States and units of general local government, along with 
        private non-profit organizations, in planning and implementing 
        comprehensive homeless assistance programs that are designed to 
        meet the array of service and shelter needs of the homeless 
        population toward the ultimate goal of assisting individuals 
        and families to move to permanent housing and self-sufficiency 
        with supportive services, if necessary, as quickly as possible;
            (4) maximize a community's ability to implement a 
        ``continuum of care,'' by working with local groups and not-
        for-profit providers;
            (5) assure private non-profit organizations and community 
        groups that HUD will administer the grant if States or units of 
        general local government are reluctant to participate in the 
        program established by this subtitle;
            (6) make more efficient and equitable the manner in which 
        the Department of Housing and Urban Development distributes 
        Federal homeless assistance, and to reduce the burden on the 
        Department's staff in managing numerous competitions for grants 
        so that its limited staff can focus on providing technical 
        support, analysis, and evaluation to better enable States, 
        units of general local government, and non-profit providers to 
        use Federal homeless assistance;
            (7) reduce the costs to States, units of general local 
        government, and private non-profit organizations in applying 
        for and using the assistance; and
            (8) begin the process of moving toward the goal of meeting 
        the needs of most of the Nation's homeless population through 
        the mainstream programs as the Federal resources supporting 
        these programs become available, in accordance with the 
        Nation's Plan to End Homelessness.

                              definitions

    Sec. 103. As used in this subtitle:
            (1) The term ``Act'' means the Stewart B. McKinney Homeless 
        Assistance Act.
            (2) The term ``applicant'' means a grantee submitting an 
        application under section 105.
            (3) The term ``allocation unit of general local 
        government'' means a metropolitan city and an urban county.
            (4) The term ``grantee'' means--
                    (A) an allocation unit of general local government, 
                Indian tribe, or Insular Area that administers a grant 
                under section 108(a)(1);
                    (B) an allocation unit of general local government, 
                Indian tribe, or Insular Area that designates a public 
                agency or a private non-profit organization (or a 
                consortium of such organizations) to administer grant 
                amounts instead of the jurisdiction under section 
                108(a)(2);
                    (C) a public agency or a private non-profit 
                organization (or a consortium of such organizations) 
                designated by the Secretary under section 108(a)(3) to 
                administer grant amounts instead of an allocation unit 
                of general local government, Indian tribe, or Insular 
                Area;
                    (D) an entity receiving grant amounts from the 
                Secretary under section 108(a)(4);
                    (E) a State administering a grant under section 
                108(b)(1)(A);
                    (F) a unit of general local government receiving a 
                grant from the Secretary under section 108(b)(5); and
                    (G) a private non-profit organization receiving a 
                grant from the Secretary under section 108(b)(4).
            (5) The term ``homeless individual'' has the meaning given 
        such term in section 103 of the Act.
            (6) The term ``homeless family'' means a group of one or 
        more related individuals who are homeless individuals.
            (7) The term ``Indian tribe'' means any Indian tribe, band, 
        group, and nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        which is considered an eligible recipient under the Indian 
        Self-Determination and Education Assistance Act (Public Law 93-
        638) or was considered an eligible recipient under chapter 67 
        of title 31, United States Code, before the repeal of such 
        chapter.
            (8) The term ``Insular Area'' means the Virgin Islands, 
        Guam, American Samoa, and the Northern Mariana Islands.
            (9) The term ``metropolitan city'' has the meaning given 
        the term in section 102(a)(4) of the Housing and Community 
        Development Act of 1974.
            (10) The term ``private non-profit organization'' means an 
        organization--
                    (A) no part of the net earnings of which inures to 
                the benefit of any member, founder, contributor, or 
                individual;
                    (B) that has a voluntary board;
                    (C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    (D) that practices nondiscrimination in the 
                provision of assistance.
            (11) The term ``recipient'' means a grantee (other than a 
        State distributing grant amounts to State recipients) and a 
        State recipient.
            (12) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
            (13) The term ``State'' means each of the several States 
        and the Commonwealth of Puerto Rico.
            (14) The term ``State recipient'' means--
                    (A) a unit of general local government within the 
                State (other than an allocation unit of general local 
                government) that receives grant amounts from the State 
                under section 108(b)(3); and
                    (B) a private non-profit organization receiving 
                grant amounts from the State under section 108(b)(4).
            (15) The term ``unit of general local government'' means--
                    (A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    (B) the District of Columbia; and
                    (C) 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 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government if the Secretary determines 
        that the consortium--
                    (i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    (ii) will, according to a written certification by 
                the State (or States, if the consortium includes 
                jurisdictions in more than one State), direct its 
                activities to alleviation of problems of homeless 
                individuals or families within the State or States.
            (16) The term ``urban county'' has the meaning given the 
        term in section 102(a)(6) of the Housing and Community 
        Development Act of 1974

                             authorizations

    Sec. 104. (a) In General.--The Secretary is authorized to make 
grants, in accordance with the provisions of this subtitle, to grantees 
to carry out activities to assist homeless individuals and families in 
support of comprehensive homeless assistance systems.
    (b) Funding Amounts.--For purposes of this subtitle, there are 
authorized to be appropriated $1,020,000,000 for fiscal year 1995, and 
such sums as may be necessary for each of fiscal years 1996 and 1997. 
Any amounts appropriated shall remain available until expended.
    (c) Awarding of Grants.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall distribute amounts appropriated under 
        subsection (b) to grantees under this subtitle.
            (2) Insufficient appropriations.--
                    (A) If the amounts appropriated under subsection 
                (b) for any fiscal year are less than 50 percent of the 
                amount authorized to be appropriated under that 
                subsection for that year, the Secretary shall 
                distribute the amounts appropriated to States, units of 
                general local government, Indian tribes, Insular Areas, 
                and private non-profit organizations on the basis of a 
                competition.
                    (B) Grants under this paragraph shall be subject to 
                the provisions of this subtitle, except such provisions 
                as the Secretary determines are inconsistent with the 
                purposes of this paragraph. The Secretary shall 
                establish such additional or alternative requirements 
                for grants under this paragraph as the Secretary deems 
                appropriate, which shall include requirements for 
                applying for, and criteria for awarding, such grants.
                    (C) The criteria for awarding grants referred to in 
                subparagraph (B) shall include--
                            (i) the extent to which there is a need for 
                        assistance for homeless individuals and 
                        families in the jurisdiction;
                            (ii) the extent to which the proposed 
                        activities further the establishment and 
                        maintenance of the comprehensive homeless 
                        assistance system referred to in section 
                        105(b)(1)(C);
                            (iii) the extent to which private non-
                        profit organizations providing assistance to 
                        homeless individuals and families in the 
                        jurisdiction have been, and will be, included 
                        in planning for the receipt of assistance under 
                        this subtitle, the development of the 
                        application under section 105, and the 
                        execution of the proposed activities;
                            (iv) the extent to which homeless 
                        individuals and families will proceed with 
                        appropriate expedition through the 
                        comprehensive homeless assistance system and 
                        into permanent housing; and
                            (v) such other criteria as the Secretary 
                        deems appropriate to further the purposes of 
                        this paragraph and this subtitle.
                    (D) The Secretary is authorized to set aside such 
                amounts as the Secretary deems appropriate for grants 
                under this paragraph for Indian tribes and Insular 
                Areas.

                              application

    Sec. 105. (a) In General.--Each applicant shall submit an 
application in such form and in accordance with such procedures as the 
Secretary shall establish.
    (b) Minimum Requirements.--An application under this section shall 
at a minimum--
            (1) on the basis of information provided in the current 
        comprehensive affordable housing strategy for the appropriate 
        jurisdiction under section 105 of the Cranston-Gonzalez 
        National Affordable Housing Act, or such other plan as the 
        Secretary may prescribe, set forth for the jurisdiction--
                    (A) a detailed description of the current 
                population of homeless individuals and families;
                    (B) the current facilities and services designed to 
                assist that population; and
                    (C) the comprehensive homeless assistance system to 
                be established and maintained within the jurisdiction 
                (a ``continuum of care''), which shall include at a 
                minimum--
                            (i) a system of outreach and assessment 
                        for--
                                    (I) determining whether an 
                                individual or family is homeless, needs 
                                assistance to avoid becoming homeless, 
                                or needs other assistance; and
                                    (II) ensuring that individuals and 
                                families that are so identified receive 
                                appropriate housing and supportive 
                                services (which may include services 
                                with respect to health, mental health, 
                                substance abuse, family support, 
                                education, and child care, and services 
                                directed toward obtaining appropriate 
                                income support, including employment 
                                training);
                            (ii) the availability of emergency shelters 
                        with appropriate supportive services to ensure 
                        that homeless individuals and families for 
                        which such housing is appropriate receive 
                        adequate shelter, including during the period 
                        in which the assessment referred to in clause 
                        (i) is being performed;
                            (iii) the availability of transitional 
                        housing with appropriate supportive services to 
                        ensure that homeless individuals and families 
                        for which such housing is appropriate are 
                        prepared for increased responsibility and 
                        permanent housing, or permanent supportive 
                        housing, after the transition period;
                            (iv) the availability of permanent housing, 
                        or permanent supportive housing, adequate to 
                        meet the long-term housing needs of all 
                        homeless individuals and families; and
                            (v) linkages between assistance provided 
                        under this subtitle and assistance provided 
                        under other Federal, State, and local programs 
                        that may be used to assist homeless individuals 
                        and families, such as--
                                    (I) assistance under the Public and 
                                Indian Housing and section 8 Programs 
                                under the United States Housing Act of 
                                1937, the Home Investment Partnerships 
                                Act, and the Community Development 
                                Block Grant Program under title I of 
                                the Housing and Community Development 
                                Act of 1974;
                                    (II) programs administered by the 
                                Secretary of Labor;
                                    (III) health, social service, and 
                                income support services;
                                    (IV) programs designed to assist 
                                homeless veterans;
                                    (V) adult education, employment 
                                training, and education for homeless 
                                children and youth; and
                                    (VI) national service;
            (2) provide an assessment of what is required to establish 
        and maintain the comprehensive system referred to in paragraph 
        (1)(C);
            (3) set forth a multi-year strategy for establishing and 
        maintaining the system, including appropriate timetables, 
        milestones, and budget estimates for accomplishing each element 
        of the strategy;
            (4) set forth a 1-year action plan, identifying all 
        activities to be carried out with assistance under this 
        subtitle and demonstrating how these activities will further 
        the strategy referred to in paragraph (3);
            (5) describe the means the applicant (other than a State 
        distributing grant amounts to State recipients under section 
        108(b)(2)) will use to distribute grant amounts to subgrantees, 
        including whether such amounts will be awarded on a competitive 
        or non-competitive basis;
            (6) demonstrate that the local board referred to in section 
        109(b) has signed the application;
            (7) contain certifications or other such forms of proof of 
        commitments of financial and other resources from each public 
        agency or private non-profit organization that has a role in 
        establishing and maintaining the comprehensive homeless 
        assistance system;
            (8) contain assurances satisfactory to the Secretary that 
        activities carried out under section 106 will meet the 
        requirements of the Act, as provide in section 106(b);
            (9) in the case of States distributing grant amounts to 
        State recipients, describe the method of distribution;
            (10) except for grant amounts that States will distribute 
        to State recipients, contain a certification from the public 
        official responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act for the State or unit 
        of general local government within which the project is located 
        that the proposed project is consistent with the approved 
        housing strategy of such State or unit of general local 
        government;
            (11) contain a certification that the applicant will comply 
        with the requirements of 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, and will 
        affirmatively further fair housing; and
            (12) contain a certification that the applicant will comply 
        with the requirements of this subtitle and other applicable 
        laws.

                          eligible activities

    Sec. 106. (a) In General.--Recipients may only carry out the 
following activities with grant amounts under this subtitle:
            (1) Activities eligible for assistance under the following 
        provisions of the Act:
                    (A) Emergency shelters under subtitle B of title 
                IV.
                    (B) Transitional housing under subtitle C of title 
                IV.
                    (C) Safe havens under subtitle D of title IV.
                    (D) Single room occupancy dwellings under section 
                441.
                    (E) Shelter plus care under subtitle F of title IV.
                    (F) Rural homeless housing assistance under 
                subtitle G of title IV.
            (2) Permanent housing meeting such requirements as the 
        Secretary shall prescribe.
            (3)(A) For the first year in which a recipient receives 
        grant amounts under this subtitle, administrative expenses in 
        connection with planning the development of, and establishing, 
        its program under this subtitle.
            (B) In subsequent years, defraying the cost of 
        administering the program.
            (C) In all years, defraying the cost of constituting and 
        operating the local board referred to in section 109(b).
        Except that not more than 5 percent of any amounts provided to 
        a recipient under this subtitle for a fiscal year may be used 
        for activities under this paragraph.
            (4) Building the capacity of private non-profit 
        organizations to participate in the comprehensive homeless 
        assistance system of the recipient, except that not more than 2 
        percent of any amounts provided to a recipient under this 
        subtitle for a fiscal year may be used for activities under 
        this paragraph.
    (b) Program Requirements.--Activities assisted under this subtitle 
shall comply with all applicable requirements of the Act, except those 
that the Secretary determines are inconsistent with the provisions or 
purposes of this subtitle.
    (c) Matching Funding.--
            (1) In general.--Each recipient shall ensure that 
        contributions totaling not less than 25 percent of the grant 
        amounts made available to the recipient for any fiscal year 
        under this subtitle shall be provided from non-Federal sources, 
        as defined by the Secretary, to carry out the homeless 
        assistance program of the recipient. Each recipient shall 
        certify to the Secretary that it has complied with this 
        section, and shall include with the certification a description 
        of the sources and amounts of the matching funds.
            (2) Waivers.--A recipient may request that the Secretary 
        reduce or waive the matching requirement of paragraph (2). The 
        request shall be in a form and manner prescribed by the 
        Secretary, and shall demonstrate that the recipient lacks the 
        finances and other resources to meet the requirement. The 
        Secretary may grant the request, if the Secretary determines 
        that imposition of the match--
                    (A) would create a significant hardship for the 
                recipient; and
                    (B) would thwart the overall purpose of the 
                homeless assistance program of the recipient.
            (3) Calculation of amounts.--In calculating the amount of 
        matching funds required under paragraph (1), a recipient may 
        include--
                    (A) any funds derived from a non-Federal source;
                    (B) the value of any lease on a building;
                    (C) any salary paid to staff to carry out the 
                program of the recipient;
                    (D) the value of the time and services contributed 
                by volunteers, at a rate determined by the Secretary; 
                and
                    (E) the proceeds from bond financing validly issued 
                by a State or local government, agency, or 
                instrumentality thereof, or political subdivision 
                thereof, and repayable with revenues derived from a 
                project assisted under this subtitle, but not more than 
                25 percent of the contribution required under paragraph 
                (1) may be derived from this source.
    (d) Limitation on Use of Funds.--No assistance received under this 
subtitle (or any State or local government funds used to supplement 
such assistance) may be used to replace other funds previously used, or 
designated for use, by the State, unit of general local government, 
Indian tribe, or Insular Area to assist homeless individuals and 
families.
    (e) Non-Profit Homeless Providers.--Each recipient shall make 
available at least 51 percent of the grant amounts it receives for any 
fiscal year to private non-profit organizations that provide assistance 
to homeless individuals and families to carry out activities under this 
subtitle. Such organizations shall meet such minimum standards as the 
Secretary deems appropriate.
    (f) Administrative Expenses for Certain Entities.--An allocation 
unit of general local government, Indian tribe, or Insular Area, or a 
State recipient, that designates a public agency or a private non-
profit organization (as provided by sections 108 (a)(2) and 
(b)(3)(A)(i)(II), respectively), or a State recipient that enters into 
an agreement with a State (as provided by section 
108(b)(3)(A)(i)(III)), shall make available, to defray the 
administrative expenses of the designee or the State, such sums as the 
Secretary deems appropriate from amounts eligible for this purpose 
under subsection (a)(2).

                  allocation and distribution of funds

    Sec. 107. (a) Insular Areas.--For each fiscal year, the Secretary 
shall allocate assistance under this subtitle to Insular Areas in 
accordance with an allocation formula established by the Secretary.
    (b) States and Allocation Units of General Local Government.--
            (1) Formula allocation.--
                    (A) For each fiscal year, of the amounts that 
                remain after amounts are reserved for Insular Areas 
                under subsection (a), the Secretary shall allocate 
                assistance according to the formula described in 
                subparagraph (B) or such other formula as may hereafter 
                be enacted into law.
                    (B)(i) The Secretary shall allocate amounts for 
                allocation units of general local government and 
                States, and for Indian tribes, in a manner that ensures 
                that the percentage of the total amount available under 
                this subtitle for any fiscal year that is allocated for 
                any State or allocation unit of general local 
                government, or for Indian tribes, is equal to the 
                percentage of the total amount available for section 
                106 of the Housing and Community Development Act of 
                1974 for such prior fiscal year that is allocated for 
                such State or allocation unit of general local 
                government, or for Indian tribes.
                    (ii) If under the allocation provisions applicable 
                under this subtitle, any allocation unit of general 
                local government would receive a grant of less than 
                0.05 percent of the amounts appropriated to carry out 
                this subtitle for any fiscal year, such amount shall 
                instead be reallocated to the State for use under 
                section 108(b), except that any city that is located in 
                the State that does not have counties as local 
                governments; that has a population greater than 40,000, 
                but less than 50,000, as used in determining the fiscal 
                year 1987 Community Development Block Grant Program 
                allocation; and that was allocated in excess of 
                $1,000,000 in community development block grant funds 
                in fiscal year 1987 shall receive directly the amount 
                located to such city under subsection (a).
                    (iii)(I) All amounts allocated pursuant to the 
                preceding clauses for units of general local government 
                shall be increased on a pro rata basis until the 
                aggregate of such amounts equals 75 percent of the 
                amounts appropriated under this subtitle for each year.
                    (II) All amounts allocated pursuant to the 
                preceding clauses for States shall be decreased on a 
                pro rata basis until the aggregate of such amounts 
                equals 25 percent of the amounts appropriated under 
                this subtitle for each year.
            (2) Determination of grant amount for states and allocation 
        units of general local government.--The formula amount 
        determined for an allocation unit of general local government 
        or a State, under paragraph (1) shall be the maximum amount 
        that the jurisdiction is eligible to receive. The Secretary may 
        provide a grant for a State or for an allocation unit of 
        general local government for an amount less than the formula 
        amount, if the Secretary determines that such action is 
        appropriate based upon review of the application under section 
        105 or as a result of the annual performance review and audit 
        under section 110.
    (c) Reallocations.--Any amounts that a State or an allocation unit 
of general local government is eligible to receive under subsection (b) 
that are not received for use in the jurisdiction, as provided by 
section 108 (a) and (b), or that become available as a result of 
actions under section 110(b), shall be added to amounts available for 
allocation under section 107 for the succeeding fiscal year.

                       administration of program

    Sec. 108. (a) Allocation Units of General Local Government, Indian 
Tribes, and Insular Areas.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        and (4), an allocation unit of general local government, Indian 
        tribe, or Insular Area shall administer grant amounts received 
        under section 107 for any fiscal year.
            (2) Agencies and organizations designated by 
        jurisdiction.--
                    (A) An allocation unit of general local government, 
                Indian tribe, or Insular Area may elect for any fiscal 
                year to designate a public agency or a private non-
                profit organization (or a consortium of such 
                organizations) to administer grant amounts under 
                section 107 instead of the jurisdiction.
                    (B) The Secretary shall prescribe the manner and 
                time for making an election under subparagraph (A), and 
                shall establish criteria for the approval of agencies 
                and organizations, which shall include demonstrated 
                experience of the entity in providing assistance to 
                homeless individuals and families in the jurisdiction.
                    (C) The allocation unit of general local 
                government, Indian tribe, or Insular Area shall remain 
                both the grantee and the recipient for purposes of this 
                subtitle. The Secretary may, at the request of the 
                jurisdiction, provide grant amounts directly to the 
                agency or organization designated under this paragraph.
            (3) Agencies and organizations designated by hud.--If an 
        allocation unit of general local government, Indian tribe, or 
        Insular Area, or (if appropriate) a public agency or private 
        non-profit organization designated by the jurisdiction under 
        paragraph (2), does not receive a grant under section 107 for 
        any fiscal year because of failure to meet the application 
        requirements of section 105, the Secretary is authorized to 
        designate an agency or organization meeting the approval 
        criteria referred to in paragraph (2). Any agency or 
        organization so designated shall be both the grantee and 
        recipient for purposes of this subtitle.
            (4) Administration of grant by hud.--If for any fiscal year 
        the Secretary determines that amounts allocated for an 
        allocation unit of general local government, Indian tribe, or 
        Insular Area will not be used in the jurisdiction, as provided 
        by the preceding provisions of this subsection, the Secretary 
        is authorized to administer such amounts instead of the 
        jurisdiction. The Secretary shall prescribe such procedures and 
        requirements as the Secretary deems appropriate for 
        administering grant amounts under this paragraph.
    (b) States.--
            (1) In general.--States shall elect--
                    (A) to administer grant amounts received under 
                section 107, as provided by paragraphs (2) and (3); or
                    (B) to have the Secretary administer these amounts 
                instead of the State, as provided by paragraph (5).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be permanent and final.
            (2) State program.--Of amounts referred to in paragraph 
        (1)(A), the State--
                    (A) may use up to 15 percent of carry out its own 
                homeless assistance program under this subtitle, except 
                that these amounts may only be used for eligible 
                activities under section 106(a)(1) for which States are 
                eligible recipients under the Act; and
                    (B) shall distribute the remaining amounts to State 
                recipients for use under this subtitle. Grants to 
                States may only be used to carry out activities in 
                areas of the State outside allocation units of general 
                local government.
            (3) Distribution of amounts to state recipients.--
                    (A)(i) A State distributing amounts to State 
                recipients under paragraph (1)(A) shall, for each 
                fiscal year, afford each such recipient the options 
                of--
                            (I) administering the grant amounts on it 
                        own behalf;
                            (II) designating a public agency or a 
                        private non-profit organization (as provided by 
                        subsection (a)(2)) to administer the grant 
                        amounts instead of the jurisdiction; or
                            (III) entering into an agreement with the 
                        State, in consultation with private non-profit 
                        organizations providing assistance to homeless 
                        individuals and families in the jurisdiction, 
                        under which the State will administer the grant 
                        amounts instead of the jurisdiction.
                These options shall be exercised at such time and in 
                accordance with such criteria as the Secretary may 
                prescribe.
                    (ii) A State recipient designating an agency or 
                organization as provided by clause (i)(II), or entering 
                into an agreement with the State under clause (i)(III), 
                shall remain the recipient for purposes of this 
                subtitle. The State may, at the request of the State 
                recipient, provide grant amounts directly to the agency 
                or organization designated under clause (i))(II).
                    (B) The State shall distribute amounts to State 
                recipients (or to agencies or organizations designated 
                under subparagraph (A)(i))(II), as appropriate) on the 
                basis of an application containing such information as 
                the Secretary may prescribe. Each application shall 
                evidence an intent to establish a comprehensive 
                homeless assistance system, except that the State may 
                waive this requirement with respect to one or more 
                proposed activities, where the State determines that--
                            (i) the activities are necessary to meet 
                        the needs of homeless individuals and families 
                        within the jurisdiction; and
                            (ii) a comprehensive homeless assistance 
                        system is not necessary, due to the nature and 
                        extent of homelessness in the jurisdiction.
                    (C) In selecting State recipients and making awards 
                under subparagraph (B), the State shall give preference 
                to applications (in accordance with criteria prescribed 
                by the Secretary) that demonstrate higher relative 
                levels of homeless need and fiscal distress.
                    (D) Each State distributing grant amounts to State 
                recipients under paragraph (2)(B) may retain not to 
                exceed 5 percent of the amount to be used for this 
                purpose to defray the cost of carrying out its 
                responsibilities under this subtitle.
            (4) State or hud administration of grants for individual 
        state recipients.--If in any fiscal year a State distributes 
        grant amounts to a State recipient, but the recipient fails to 
        receive the amounts pursuant to paragraph (3)(A)(i), the 
        Secretary or the State, as the Secretary may provide, may 
        distribute the amounts to private nonprofit organizations in 
        the jurisdiction. If the Secretary distributes the amounts, the 
        Secretary shall deduct the amounts distributed from the grant 
        provided to the State for that fiscal year.
            (5) HUD administration of state program.--If a State elects 
        to have the Secretary administer its grant amounts under 
        section 107, as provided by paragraph (1), the Secretary is 
        authorized to distribute grant amounts to State recipients 
        instead of the State, in accordance with requirements and 
        procedures prescribed by the Secretary. The Secretary shall 
        establish criteria for selecting recipients and making awards 
        under this paragraph, which shall include giving preference to 
        applications that demonstrate higher relative levels of 
        homeless need and fiscal distress.

                         citizen participation

    Sec. 109. (a) In General.--Each recipient shall ensure that 
citizens, and appropriate private nonprofit organizations and other 
interested groups and entities, participate fully in the development 
and carrying out of the program authorized under this subtitle. The 
Secretary shall prescribe such requirements to carry out this section 
as the Secretary deems appropriate, which shall include requirements 
applicable to the local boards referred to in subsection (b) and the 
citizen participation provisions of subsection (c), and the timing of, 
and sequence for, carrying out the requirements of those subsections.
    (b) Local Boards.--
            (1) Establishment and function.--Each recipient shall 
        establish and support a local board, which shall assist the 
        recipient in--
                    (A) determining whether the grant should be 
                administered by the recipient, a public agency or 
                private non-profit organization, or the State or the 
                Secretary, as appropriate, under sections 108 (a) and 
                (b);
                    (B) developing the application under section 105;
                    (C) overseeing the activities carried out with 
                assistance under this subtitle; and
                    (D) evaluating the performance of the recipient in 
                carrying out these activities.
            (2) Composition of board.--The local board shall consist 
        of--
                    (A) at least one member representing each of the 
                following groups--
                            (i) homeless individuals and families;
                            (ii) homeless advocates;
                            (iii) individuals and entities providing 
                        assistance to homeless individuals and 
                        families;
                            (iv) the business community; and
                            (v) neighborhood advocates;
                    (B) in the case of a recipient that is a State, one 
                member representing the State agency or instrumentality 
                dealing with mental health;
                    (C) not more than one member representing the 
                recipient; and
                    (D) such other individuals and entities as the 
                Secretary shall prescribe.
            (3) Distribution of membership.--At least 51 percent of the 
        membership of the board shall have been nominated by 
        individuals and entities other than a governmental 
        jurisdiction.
            (4) Board sign-off.--
                    (A) No applicant may submit an application to the 
                Secretary under section 105, and no grantee may submit 
                to the Secretary a performance report under subsection 
                110(a), unless the board signs the document.
                    (B) No state recipient may submit an application 
                under section 108(b)(3) or a performance report to a 
                State, unless the board signs the document.
            (5) Review by secretary.--If the board or other members of 
        the community believe that the process for constituting or 
        operating the board is unfair, they may ask the Secretary to 
        review the matter. The Secretary shall attempt to resolve the 
        problem and where the Secretary finds that the process is 
        unfair, the Secretary may disapprove an application under 
        section 105 or refuse to accept a performance report under 
        section 110(a).
            (6) Conflicts of interest.--The Secretary shall prescribe 
        standards governing potential conflicts of interest under which 
        members of local boards may participate in activities carried 
        out under this subtitle.
    (c) Involvement of Citizens and Others.--
            (1) In general.--Each recipient shall--
                    (A) make available to its citizens, public 
                agencies, and other interested parties information 
                concerning the amount of assistance the jurisdiction 
                expects to receive and the range of activities that may 
                be undertaken with the assistance;
                    (B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity to examine 
                its content and to submit comments on it;
                    (C) hold one or more public hearings to obtain the 
                views of citizens, public agencies, and other 
                interested parties on the housing needs of the 
                jurisdiction; and
                    (D) provide citizens, public agencies, and other 
                interested parties with reasonable access to records 
                regarding any uses of any assistance the recipient may 
                have received during the preceding 5 years.
            (2) Notice and comment.--Before submitting any performance 
        report under section 110(a) or substantial amendment to an 
        application under section 105, a recipient shall provide 
        citizens with reasonable notice of, and opportunity to comment 
        on, such performance report or application before its 
        submission.
            (3) Consideration of comments.--A recipient shall consider 
        any comments or views of citizens in preparing a final 
        application, amendment to an application or performance report 
        for submission. A summary of such comments or views shall be 
        attached when an application, amendment to an application, or 
        performance report is submitted. The submitted application, 
        amendment, or report shall be made available to the public.
            (4) Authority of secretary.--The Secretary shall establish 
        procedures appropriate and practicable for providing a fair 
        hearing and timely resolution of citizen complaints related to 
        applications or performance reports under this subtitle.
    (d) Requirements for the Secretary and States Distributing Amounts 
to State Recipients.--
            (1) In general.--The Secretary may prescribe citizen 
        participation requirements comparable (to the extent 
        appropriate) to those contained in the preceding provisions of 
        this section where--
                    (A) a State is distributing grant amounts to State 
                recipients, as provided by sections 108(b)(2);
                    (B) the Secretary is administering the grant 
                amounts of an allocation unit of general local 
                government, as provided by section 108(a)(4); and
                    (C) the Secretary is distributing grant amounts to 
                recipients, as provided by section 108(b)(3), (4), or 
                (5).
            (2) Laws inapplicable.--The following provisions of law 
        shall not apply with respect to the actions of the Secretary 
        referred to in paragraph (1)--
                    (A) the Federal Advisory Committee Act; and
                    (B) section 103 of the Department of Housing and 
                Urban Development Reform Act of 1989.
        The Secretary shall establish appropriate standards under this 
        paragraph to ensure the integrity of the process for awarding 
        assistance.

                      reports, reviews, and audits

    Sec. 110. (a) Grantee Performance Report.--Each grantee shall 
submit to the Secretary a performance and evaluation report concerning 
the use of funds made available under this subtitle. The report shall 
be submitted at such time and contain such information as the Secretary 
shall prescribe, and shall be made available to the local boards 
referred to in section 109(b) and to citizens, public agencies, and 
other interested parties in the jurisdiction of the grantee in 
sufficient time to permit the board and the citizens, public agencies, 
and other interested parties to comment on the report before its 
submission. Each grantee performance report shall be signed by the 
local board.
    (b) Reviews and Audits.--The Secretary shall, at least on an annual 
basis, make such reviews and audits as may be necessary or appropriate 
to determine--
            (1) in the case of a grantee (other than a grantee referred 
        to in paragraph (2)), whether the grantee--
                    (A) has carried out its activities in a timely 
                manner;
                    (B) has made progress toward establishing and 
                maintaining the comprehensive homeless assistance 
                system (``continuum of care'') in conformity with its 
                application under this subtitle;
                    (C) has carried out its activities and 
                certifications in accordance with the requirements of 
                this subtitle and other applicable laws; and
                    (D) has a continuing capacity to carry out its 
                activities in a timely manner; and
            (2) in the case of States distributing grant amounts to 
        State recipients, whether the State--
                    (A) has distributed amounts to State recipients in 
                a timely manner and in conformance with the method of 
                distribution described in its application;
                    (B) has carried out its activities and 
                certifications in compliance with the requirements of 
                this subtitle and other applicable laws; and
                    (C) has made such reviews and audits of the State 
                recipients as may be necessary or appropriate to 
                determine whether they have satisfied the applicable 
                performance criteria contained in paragraph (1).
        The Secretary may make appropriate adjustments in the amount of 
        grants in accordance with the Secretary's findings under this 
        subsection. With respect to assistance made available for State 
        recipients, the Secretary may adjust, reduce, or withdraw such 
        assistance, or take other action as appropriate in accordance 
        with the Secretary's reviews and audits under this subsection, 
        except that funds already properly expended on eligible 
        activities under this subtitle shall not be recaptured or 
        deducted from future assistance to such recipients.

              nondiscrimination in programs and activities

    Sec. 111. (a) In General.--No person in the United States shall on 
the ground of race, color, national origin, religion, or sex be 
excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any program or activity funded in 
whole or in part with funds made available under this subtitle. Any 
prohibition against discrimination on the basis of age under the Age 
Discrimination Act of 1975 or with respect to an otherwise qualified 
handicapped individual, as provided in section 504 of the 
Rehabilitation Act of 1973, shall also apply to any such program or 
activity.
    (b) Limitations.--
            (1) Indian tribes.--No grant may be made to an Indian tribe 
        under this subtitle unless the applicant provides satisfactory 
        assurances that its program will be conducted and administered 
        in conformity with title II of Public Law 90-284. The Secretary 
        may waive, in connection with grants to Indian tribes, the 
        provisions of subsection (a).
            (2) Hawaiian home lands.--Nothing in this subtitle relating 
        to discrimination on the basis of race shall apply to the 
        provision of assistance to the Hawaiian Home Lands.

                              consultation

    Sec. 112. In carrying out the provisions of this subtitle, 
including the issuance of regulations, the Secretary shall consult with 
other Federal departments and agencies administering programs affecting 
homeless individuals and families.

                      records, reports, and audits

    Sec. 113. (a) Keeping of Records.--Any recipient (including a State 
distributing grant amounts to State recipients under section 
108(b)(2)(B)) shall keep such records as may be reasonably necessary--
            (1) to disclose the amounts and the disposition of the 
        grant amounts; and
            (2) to ensure compliance with the requirements of this 
        subtitle.
    (b) Access to Documents by the Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient specified in subsection 
(a) that are pertinent to grant amounts received in connection with, 
and the requirements of, this subtitle.
    (c) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient specified in subsection (a) that are pertinent 
to grant amounts received in connection with, and the requirements of, 
this subtitle.

                          reports to congress

    Sec. 114. The Secretary shall submit a report to the Congress 
annually, summarizing the activities carried out under this subtitle 
and setting forth the findings, conclusions, and recommendations of the 
Secretary as a result of the activities. The report shall be submitted 
not later than 4 months after the end of each fiscal year (except that, 
in the case of fiscal year 1995, the report shall be submitted not 
later than 6 months after the end of the fiscal year).

                      innovative homeless program

    Sec. 115. (a) Funding Authorization.--Section 2(f) of the HUD 
Demonstration Act of 1993 is amended to read as follows:
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $100,000,000 for fiscal year 1995 and 
        such sums as may be necessary for fiscal year 1996.
            ``(2) Use of amounts.--All amounts appropriated under 
        paragraph (1) shall be used only to carry out the comprehensive 
        homeless initiative under subsection (c).''.
    (b) Repeal.--Section 2(g) of such Act is amended by striking 
``1994'' and inserting ``1997''.

                 Subtitle B--Emergency Food and Shelter

  transfer of the emergency food and shelter program from fema to hud

    Sec. 121. (a) Section 301 of the Stewart B. McKinney Homeless 
Assistance Act is amended--
            (1) by striking the second sentence of subsection (a);
            (2) by striking the first and second sentences of 
        subsection (b) and inserting in lieu thereof the following: 
        ``The National Board shall consist of the Secretary and 6 
        members. The Secretary shall appoint members to vacancies on 
        the National Board existing on, or occurring after, the 
        effective date of this sentence.'';
            (3) in subsection (c), by striking ``Director'' and 
        inserting in lieu thereof ``Secretary''; and
            (4) by striking subsection (e).
    (b) Section 303 of such Act is amended--
            (1) by striking ``Federal Emergency Management Agency'' in 
        the section heading and subsection (b)(1) and inserting in lieu 
        thereof ``Department of Housing and Urban Development''; and
            (2) by striking ``Director'' each place it appears and 
        inserting in lieu thereof ``Secretary''.
    (c) Section 311 of such Act is amended by striking ``Director'' in 
the section heading and in the first sentence and inserting in lieu 
thereof ``Secretary''.
    (d) Section 321(1) of such Act is amended to read as follows:
            ``(1) The term `Secretary' means the Secretary of Housing 
        and Urban Development.''.
    (e) Section 322 of such Act is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$130,000,000 for fiscal year 1995 and $130,000,000 for fiscal year 
1996.''.
    (f) The amendments made by the preceding provisions of this section 
shall become effective on the later of October 1, 1994, or the date of 
enactment of this Act.

   TITLE II--PUBLIC AND INDIAN HOUSING; CROSS-CUTTING AUTHORIZATIONS

      Subtitle A--Enhance Flexibility for Public Housing Agencies

             direct loans for modernization and replacement

    Sec. 201. The United States Housing Act of 1937 is amended by 
adding the following new section at the end of title I:

``SEC. 27. DIRECT LOANS FOR MODERNIZATION AND REPLACEMENT.

    ``(a) General Authorization.--The Secretary is authorized, upon 
such terms and conditions as the Secretary may prescribe, to make loans 
to public housing agencies eligible for comprehensive modernization 
grants under section 14 for purposes of financing activities eligible 
for comprehensive modernization grants under that section, except for 
upgrading the management and operation of low-rent public housing 
projects.
    ``(b) Terms and Conditions.--
            ``(1) Criteria for approval.--In determining whether, or in 
        what amount, to approve an application for a loan under this 
        section, the Secretary may consider--
                    ``(A) the ability of the agency to use funds 
                effectively, directly or through contract management;
                    ``(B) the adequacy of remaining future allocations 
                in providing repairs, replacements, and improvements 
                which will be needed as a result of usage and 
                depreciation of existing projects over the loan period; 
                and
                    ``(C) such other criteria as the Secretary may 
                specify.
            ``(2) Special conditions.--Notwithstanding paragraph (1), 
        the Secretary may approve a loan under this section only if the 
        Secretary determines that the public housing agency has an 
        acceptable rate of obligation of funds under section 14, or the 
        public housing agency agrees to administer the loan proceeds 
        through contract management.
            ``(3) Limitations on denial.--The Secretary may not deny a 
        loan under this section on the basis of the proposed repayment 
        period for the loan, unless the period is more than 10 years or 
        the Secretary determines that the period otherwise causes the 
        loan to constitute an unacceptable financial risk.
            ``(4) Term of loan.--Loans under this section shall be for 
        a term not to exceed 10 years.
            ``(5) Interest rate.--Loans under this section shall bear 
        an interest rate determined by the Secretary of the Treasury, 
        taking into consideration the current market yields on 
        outstanding marketable obligations of the United States with 
        remaining terms to maturities comparable to the average 
        maturities of loans under this section, plus amounts sufficient 
        to cover servicing costs.
            ``(6) Prohibition against subordination.--Loans under this 
        section shall not be subordinated to other debt contracted by 
        the public housing agency or to any other claim against the 
        agency.
            ``(7) Subsidy amount.--Based on the strength of the 
        guarantees by the State or unit of general local government, 
        pledges of financial assets, tax revenues, and payments from 
        other sources (non-Federal or Federal), and the public housing 
        agency's pledged sources of repayments (including rents and 
        other anticipated income streams (Federal or non-Federal)), the 
        Secretary shall establish a subsidy cost, as defined by the 
        Federal Credit Reform Act of 1990, for each loan to an agency. 
        The subsidy shall be calculated by the Office of Management and 
        Budget in consultation with the Secretary, as directed by 
        section 503(a) of the Federal Credit Reform Act, consistent 
        with the technical assumptions contained in the President's 
        Budget to assure that it is fully offset by the premium amount 
        and that the resulting net subsidy cost to the Federal 
        Government is zero.
            ``(8) Premium amount.--A premium amount shall be assessed 
        to cover the subsidy amount associated with each loan. This 
        premium shall be paid from the amount the public housing agency 
        received under the comprehensive grant program under section 14 
        in the year the loan is originated.
    ``(c) Funding and Borrowing Authorization.--There are authorized to 
be appropriated such sums as may be necessary for each of fiscal years 
1995 and 1996 for the cost to the Government, as defined in section 502 
of the Congressional Budget Act, of loans under this section. To the 
extent provided in appropriations Acts, the Secretary may enter into 
commitments to make loans under this section with an aggregate 
principal amount of $2,000,000,000 for fiscal year 1995 and 
$2,000,000,000 for fiscal year 1996.
    ``(d) Loan Limit.--No loan may be made under this section if the 
total outstanding loans under this section made to a public housing 
agency (excluding any amount repaid) would thereby exceed an amount 
prescribed by the Secretary, but not to exceed 5 times the amount of 
the public housing agency's latest comprehensive modernization grant 
under section 14.
    ``(e) Use of Comprehensive Grants.--Notwithstanding any other 
provision of this title, comprehensive modernization grants or 
allocations under this title to the public housing agency (including 
program income derived therefrom) are authorized for use by the public 
housing agency or by the Secretary for the payment of principal and 
interest, and fees, due on the loans under this section.
    ``(f) Fees and Premiums.--The Secretary is authorized to charge 
such fees and premiums as the Secretary determines necessary to cover 
the cost, as defined by the Federal Credit Reform Act of 1990, to the 
Federal Government with respect to any loan made under this section.
    ``(g) Program Requirements.--To assure the full repayment of loans 
made under this section, as well as the payment of any fees and 
premiums charged in connection with the loans, and as a prior condition 
for receiving the loans, the Secretary shall require--
            ``(1) the public housing agency to--
                    ``(A) enter into a contract, in a form acceptable 
                to the Secretary, for repayment of the loans and the 
                other specified charges;
                    ``(B) pledge for repayment of the loan any amount 
                received under the comprehensive grant program under 
                section 14 or grant for which the public housing agency 
                may become eligible under this title and other 
                financial resources, including rental and other public 
                housing agency income; however, in no case may a loan 
                be granted if the only pledged source of repayment is 
                amounts received under the comprehensive grant program 
                under section 18; and
                    ``(C) furnish, at the discretion of the Secretary, 
                such other security as may be deemed appropriate by the 
                Secretary in making such loans, which may include 
                public housing projects, accounts, or other land or 
                housing owned by the agency or the proceeds of 
                disposition thereof; and
            ``(2) the State or unit of general local government in 
        which the public housing agency is located to enter into a 
        contract in a form acceptable to the Secretary under which the 
        jurisdiction shall pledge its financial assets, tax revenues, 
        and other Federal payments, including amounts from present and 
        future allocations under title I of the Housing and Community 
        Development Act of 1974, as collateral for repayment of some 
        portion of the loan. In the event of default, the State or unit 
        of general local government shall pay a share of the remaining 
        unpaid debt service proportional to its pledge.
    ``(h) Application of Pledged Amounts.--Notwithstanding any other 
provision of Federal, State, or local law, the Secretary is authorized 
to apply allocations, grants, and sums from other sources pledged under 
this section to any remaining debt service due the United States as a 
result of such loans.
    ``(i) Program Administration.--The Secretary shall monitor the use 
of loans under this section by public housing agencies. If the 
Secretary finds that 50 percent of the annual loan authority has been 
committed, or public housing agencies have applied for such 
commitments, the Secretary may--
            ``(1) impose limitations on the amount of loans any public 
        housing agency may receive in any fiscal year; or
            ``(2) request the enactment of legislation increasing the 
        aggregate limitation on loans under this section.
    ``(j) Training and Information.--The Secretary may carry out 
training and information collection and dissemination activities in 
support of this section using funds otherwise set aside for technical 
assistance under section 14.''.

           use of modernization funds for replacement housing

    Sec. 202. Section 14 of the United States Housing Act of 1937 is 
amended by adding the following new subsection at the end thereof:
    ``(q) A public housing agency may use assistance under this section 
for the development of additional housing under this Act, in accordance 
with requirements applicable to the development of public housing, and 
for 15-year project-based assistance and 5-year tenant-based 
assistance, in accordance with section 8, to provide replacement 
housing as required by section 18.''.

  facilitate use of public-private partnerships in modernizing public 
                                housing

    Sec. 203. Section 14(c)(1) of the United States Housing Act of 1937 
is amended by inserting before the semicolon the following: ``or, as 
determined by the Secretary, controlled by the agencies''.

        modification of the early childhood development program

    Sec. 204 (a) The caption for section 222 of the Housing and Urban-
Rural Recovery Act of 1983 is amended to read as follows:

``early childhood development programs for public housing residents and 
                          homeless families''.

    (b) Section 222(b)(1) of such Act is amended by inserting before 
the semicolon the following: ``, except that the Secretary may make a 
grant to provide additional assistance for an existing child care 
center assisted under this section or to expand an existing child care 
center regardless of whether or not such center was previously assisted 
under this section''.
    (c) Section 222 of such Act is amended--
            (1) in subsection (a)(1), by inserting before the period 
        the following: ``(including, for purposes of this section, 
        homeless families with children, as defined by the 
        Secretary)''; and
            (2) by redesignating paragraphs (2) and (3) of subsection 
        (c) as paragraphs (3) and (4), and inserting after paragraph 
        (1) the following new paragraph:
            ``(2) take into account the proximity of homeless 
        facilities to the proposed site at which the services are 
        proposed to be provided;''.
    (d) Section 222(g) of such Act is amended by striking the first two 
sentences and inserting in lieu thereof the following: ``There are 
authorized to be appropriated to carry out this section $35,000,000 for 
fiscal year 1995 and $35,000,000 for fiscal year 1996.''.

                     entrepreneurial phas and rmcs

    Sec. 205. (a) The Secretary may authorize public housing agencies 
and resident management corporations to conduct demonstrations that--
            (1) test the extent to which aspects of the public housing 
        program may be exempt from certain statutory requirements while 
        continuing to serve eligible families, and
            (2) permit agencies and RMCs to set policies for the 
        operation, maintenance, management, and development (including 
        modernization) of one or more projects, without regard to the 
        requirements applicable to public housing in the 1937 Act. In 
        establishing these policies, agencies and RMCs shall be bound 
        by any applicable State or local law. A demonstration may be 
        approved for a term of up to 5 years.
    (b) The Secretary may waive requirements of the 1937 Act that the 
Secretary determines are not consistent with the purposes of a 
demonstration, except requirements--
            (1) limiting occupancy to low-income families, as defined 
        in section 3 of the 1937 Act,
            (2) under section 18 of that Act requiring replacement of 
        units in the case of demolition or disposition (except that the 
        limitation on the use of tenant-based assistance to 
        applications proposing demolition or disposition of 200 or more 
        units may be waived); and
            (3) relating to labor standards.
The Secretary may also waive any other statutory 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 the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 or any statutory requirements 
pertaining to equal opportunity or nondiscrimination or the 
environment.
    (c) The Secretary may select a total of up to 25 public housing 
agencies or RMCs (or a combination of both) to carry out up to 25 
demonstrations under this section. The Secretary shall select agencies 
based on selection criteria including such factors as--
            (1) the need for a range of project sizes;
            (2) the need for a range of types of public housing 
        agencies and RMCs; and
            (3) the potential effects and benefits the variations 
        proposed by the agency or RMC could have on the public housing 
        program if the variations were adopted for the whole program.
    (d) Each 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 consistent with the overall purposes of the public 
        housing program;
            (4) be evaluated by an independent party; 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, the Age Discrimination Act of 1975, and the 
        National Environmental Policy Act of 1969.
    (e) In approving a demonstration under this section, the Secretary 
may impose such requirements as the Secretary considers to be 
appropriate to further its purposes.
    (f) For each demonstration site, the agency or RMC carrying out the 
demonstration shall submit an annual progress report to the Secretary. 
The Secretary shall submit a report to Congress within 1 year after 
completion of the demonstration, describing the results of the 
demonstration and making any recommendations for legislation.
    (g) There is authorized to be appropriated $1,000,000 for the 
evaluation of demonstrations under this section.
    (h) As used in this section:
            (1) ``Secretary'' means the Secretary of Housing and Urban 
        Development.
            (2) ``1937 Act'' means the United States Housing Act of 
        1937.
            (3) ``Public housing agency'' or ``agency'' means a public 
        housing agency, as defined in section 3(b)(6) of the 1937 Act. 
        The term includes Indian housing authorities.
            (4) ``Resident management corporation'' or ``RMC'' means a 
        resident management corporation established in accordance with 
        requirements of the Secretary under section 20 of the 1937 Act.

   disallowance of earned income for residents who obtain employment

    Sec. 206. (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 1 or more years (including a 
family whose income increases as a result of the participation of a 
family member in the Family Self-Sufficiency Program or other job-
training program) may not be increased for a period of 18 months, 
beginning with the commencement of employment as a result of the 
increased income due to such employment. After the expiration of the 
18-month period, rent increases due to the continued employment of such 
a family member shall be limited to 10 percent per year. In no case 
shall rent exceed the amount determined under subsection (a).''.
            (2) Applicability of amendment.--Notwithstanding the 
        amendment made by paragraph (1), any resident of public housing 
        participating in the program under the authority contained in 
        the undesignated paragraph at the end of section 3(c)(3) of the 
        United States Housing Act of 1937, as such paragraph existed 
        before the date of enactment of this Act, 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. 207. (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) Regulations.--
            (1) In general.--The Secretary shall, by regulation, after 
        notice and an opportunity for public comment, establish such 
        requirements as may be necessary to carry out the provisions of 
        section 3(a)(2)(A) of the United States Housing Act of 1937, as 
        amended by subsection (a).
            (2) Transition rule.--Prior to the issuance of final 
        regulations under paragraph (1), a public housing agency may 
        implement ceiling rents which shall be--
                    (A) determined in accordance with section 
                3(a)(2)(A) of the United States Housing Act of 1937, as 
                such section existed before the date of enactment of 
                this Act; or
                    (B) equal to the 95th percentile of the rent paid 
                for a unit of comparable size by tenants in the same 
                project or a group of comparable projects totaling 50 
                units or more.

    authorization to sell public housing to non-profit organizations

    Sec. 208. The first sentence of section 5(h) of the United States 
Housing Act of 1937 is amended by striking ``lower income tenants'' and 
inserting: ``low-income families or to nonprofit organizations for 
resale to low-income families''.

         Subtitle B--Severely Distressed Public Housing Program

          revitalization of severely distressed public housing

    Sec. 211. (a) Severely Distressed Public Housing.--Section 24 of 
the United States Housing Act of 1937 is amended as provided by this 
subsection.
            (1) Designation of eligible projects.--
                    (A) Subsection (b) is amended to read as follows:
    ``(b) [Reserved].''
                    (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--
                    (A) inserting the following new subparagraph after 
                subparagraph and (D) redesignating the following 
                subparagraphs accordingly:
                    ``(E) planning for community service and support 
                service activities to be carried out by the public 
                housing agency, residents, members of the community, 
                and other persons and organizations willing to 
                contribute to the social, economic, or physical 
                improvement of the community (community service is a 
                required element of the revitalization program);''; and
                    (B) in subparagraph (H), as redesignated, by 
                striking ``designing a suitable replacement housing 
                plan'' and inserting ``designing suitable relocation 
                and replacement housing plans,''.
            (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 community service and 
                support service planning activities to be carried out 
                by the public housing agency, residents, members of the 
                community, and other persons and organizations willing 
                to contribute to the social, economic, or physical 
                improvement of the community;''.
            (5) Planning grant selection criteria: national geographic 
        diversity.--Subsection (c)(5) is amended by--
                    (A) striking subparagraph (E) and redesignating the 
                following subparagraphs accordingly;
                    (B) in subparagraph (E), as redesignated, by 
                inserting before the semicolon ``, taking into account 
                the condition of the stock of the public housing agency 
                as a whole''; and
                    (C) adding at the end the following: ``In making 
                grants, under this subsection, the Secretary may select 
                a lower-rated, approvable application over a higher-
                rated application to increase the national geographic 
                diversity among applications approved under this 
                section.'';
            (6) 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 and support service 
                activities to be carried out by the public housing 
                agency, residents, 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);
                    ``(F) replacement of public housing units;''.
                    (B) Subsection (d)(2)(K), as redesignated by 
                subparagraph (A) of this paragraph, is amended by--
                            (i) striking ``15 percent'' and inserting 
                        ``20 percent''; and
                            (ii) inserting before the period the 
                        following: ``except 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 (which 
                        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)''.
            (7) 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 and 
                support activities to be carried out by the public 
                housing agency, residents, members of the community, 
                and other persons and organizations willing to 
                contribute to the social, economic, or physical 
                improvement of the community;''.
            (8) Implementation grant selection criteria: national 
        geographic diversity.--Subsection (d)(4) is amended by--
                    (A) in subparagraph (D), by inserting ``(with 
                assistance from the Department of Housing and Urban 
                Development if necessary)'' after ``applicant'';
                    (B) striking subparagraph (E) and redesignating the 
                following subparagraphs accordingly;
                    (C) in subparagraph (E), as redesignated, by 
                inserting before the semicolon ``, taking into account 
                the condition of the applicant's stock as a whole''; 
                and
                    (D) adding at the end the following: ``In making 
                grants, under this subsection, the Secretary may select 
                a lower-rated, approvable application over a higher-
                rated application to increase the national geographic 
                diversity among applications approved under this 
                section.''.
            (9) Exceptions to general program requirements.--Subsection 
        (e) is amended by adding at the end the following new 
        paragraph:
            ``(3) Demolition and replacement.--
                    ``(A) In general.--Notwithstanding any other 
                applicable law or regulation, a revitalization plan 
                under this section may include demolition and 
                replacement on site or in the same neighborhood if the 
                number of replacement units provided in the same 
                neighborhood is fewer than the number of units 
                demolished as a result of the revitalization effort.
                    ``(B) Tenant-based assistance.--Notwithstanding the 
                limitations contained in subparagraph (A)(v) or (C) of 
                section 18(b)(3), a public housing agency may replace 
                not more than one-third of the units demolished or 
                disposed of through a revitalization project under this 
                section with tenant-based assistance under section 
                8.''.
            (10) 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--
                    ``(A) that requires major redesign, reconstruction, 
                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) that either--
                            ``(i)(I) is occupied predominantly by 
                        families with children that 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) that has a vacancy rate, as 
                        determined by the Secretary, of 50 percent or 
                        more; and
                    ``(C) that 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) that 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 basis for the social, 
        economic, or physical improvement of the community to be 
        served.
            ``(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 residence of the project, such as literacy training, job 
        training, day care, and economic development. Such activities 
        may allow for the participation of 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 that has been troubled for not less than 
3 years and that, as determined by the Secretary, has failed to make 
substantial progress toward effective management.''.
    (c) Use of Tenant-Based Assistance for Replacement Housing.--
Section 18(b)(3)(C)(i) of the United States Housing Act of 1937 is 
amended by striking ``15-year''.
    (d) 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 on 
                        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);
                                    ``(II) complete the plan on 
                                schedule in accordance with 
                                subparagraph (E);
                                    ``(III) meet the requirements of 
                                subparagraph (F) of this paragraph and 
                                the maximum rent provisions of 
                                subparagraph (G); 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.''.

                  modernization program reserve funds

    Sec. 212. The first sentence of section 14(k)(1) of the United 
States Housing Act of 1937 is amended by inserting before the period 
the following: ``and for modernization needs in connection with the 
settlement of litigation and desegregation of public housing.''.

 eligibility of severely distressed public housing for public housing 
                          operating subsidies

    Sec. 213. Section 9(a)(2) of the United States Housing Act of 1937 
is amended--
            (1) by inserting immediately after ``one'' the following: 
        ``that is (A)''; and
            (2) by inserting immediately after ``section 8,'' the 
        following: ``or (B) assisted under section 24 or the program 
        authorized under (i) the third paragraph of the head, 
        homeownership and opportunity for people everywhere grants 
        (hope grants), of the Department of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1993, or (ii) the head, severely distressed 
        public housing projects, of the Department of Veterans Affairs 
        and Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1994,''.

         applicability of section 24 and urd statute and rules

    Sec. 214. Notwithstanding any provisions of the United States 
Housing Act of 1937, with respect to a public housing project that has 
been selected for funding under section 24 of such Act or through the 
Urban Revitalization Demonstration Program included in the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriation Act, 1993 (Public Law 102-389) or the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriation Act, 1994 (Public Law 103-124) and 
that has an approved comprehensive plan under section 14 of the United 
States Housing Act of 1937--
            (1) the Secretary may exempt such projects from any 
        requirements of the United States Housing Act of 1937 and may 
        establish such requirements as the Secretary deems appropriate 
        for any activities funded under section 24 or through the Urban 
        Revitalization Demonstration Program and for any activities 
        undertaken at the project pursuant to the approved 
        comprehensive plan and contributing to the revitalization, 
        including activities relating to demolition, modernization, 
        reconstruction, site improvements, and replacement of housing; 
        however, in no event may the Secretary waive, or specify 
        alternative requirements for, statutory requirements related to 
        nondiscrimination, fair housing, labor standards, the 
        environment, or the Uniform Relocation Assistance and Real 
        Property Acquisition Policies Act of 1970;
            (2) for the replacement of public housing units either on 
        the site of such a project or on other sites, the Secretary may 
        establish such standards as the Secretary deems appropriate 
        with respect to the assessment of racial and socio-economic 
        information relevant to the placement of public housing units 
        on the site; and
            (3) for such a revitalized project, the Secretary may 
        establish such requirements as the Secretary deems appropriate 
        with respect to income eligibility, the selection of tenants, 
        the establishment of rents, and for the operation and 
        management of the projects.

                   Subtitle C--Anti-Crime Initiatives

                  community partnerships against crime

    Sec. 221. (a) Conforming Provisions.--Section 5001 of the Anti-Drug 
Abuse Act of 1988 is amended in the table of contents--
            (1) by striking the item relating to the heading for 
        chapter 2 and inserting the following:

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

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

``Sec. 5122. Purposes.'';
        and
            (3) by adding the following after the item relating to 
        section 5130:

``Sec. 5131. Technical assistance.''.
    (b) Short Title, Purposes, and Authority To Make Grants.--The 
Public and Assisted Housing Drug Elimination Act of 1990 is amended by 
striking the chapter heading for chapter 2, and by striking sections 
5121, 5122, and 5123, and inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

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

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) improve the quality of life for law-abiding public 
        housing residents by reducing the levels of fear, violence, and 
        crime in their communities;
            ``(2) expand and enhance the Federal Government's 
        commitment to eliminating crime in public housing;
            ``(3) 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;
            ``(4) target opportunities for long-term commitments of 
        funding primarily to public housing agencies with serious crime 
        problems;
            ``(5) 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;
            ``(6) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(7) provide training, information services, and other 
        technical assistance to program participants; and
            ``(8) 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) 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.--
            (1) Section 5124(a) of the Public and Assisted Housing Drug 
        Elimination Act of 1990 is amended--
                    (A) in the introductory material preceding 
                paragraph (1), by inserting ``and around'' after ``used 
                in'';
                    (B) in paragraph (3), by inserting ``, such as 
                fencing, lighting, locking, and surveillance systems'' 
                before the semicolon;
                    (C) in paragraph (4), by striking subparagraph (A) 
                and inserting the following new subparagraph:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (E) in paragraph (7)--
                            (i) by striking ``where a public housing 
                        agency receives a grant,'';
                            (ii) by striking ``drug abuse'' and 
                        inserting ``crime''; and
                            (iii) by striking the period at the end and 
                        inserting a semicolon; and
                    (F) by adding at the end the following new 
                paragraphs:
            ``(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 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 services programs, such as job training, 
        education programs, drug and alcohol treatment, and other 
        appropriate social services that address the contributing 
        factors of crime.''.
            (2) Section 5124(b) of such Act is amended by striking 
        ``(7)'' and inserting in lieu thereof ``(10)''.
    (d) Applications.--Section 5125 of the Public and Assisted Housing 
Drug Elimination Act of 1990 is amended--
            (1) in subsection (a)--
                    (A) by striking ``To receive a grant'' and 
                inserting the following:
            ``(1) Applications.--To receive a grant'';
                    (B) in the second sentence, by striking ``drug-
                related crime on the premises of'' and inserting the 
                following: ``crime in and around''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(2) One-year renewable grants.--
                    ``(A) In general.--Eligible applicants may submit 
                an application for a 1-year grant under this chapter 
                that, subject to the availability of appropriated 
                amounts, shall be renewed annually for a period of not 
                more than 4 years, if 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.
                    ``(B) Preference.--The Secretary shall accord a 
                preference to applicants for grants under this 
                paragraph if the grant is to be used to continue or 
                expand activities eligible for assistance under this 
                chapter that have received previous assistance either 
                under this chapter, as it existed prior to the 
                enactment of the Housing Choice and Community 
                Investment Act of 1994, or under section 14 of the 
                United States Housing Act of 1937. Such preference 
                shall not preclude the selection by the Secretary of 
                other meritorious applications, particularly 
                applications which address urgent or severe crime 
                problems or which demonstrate especially promising 
                approaches to reducing crime. Such preference shall not 
                be construed to require continuation of activities 
                determined by the Secretary to be unworthy of 
                continuation.
            ``(3) Public housing agencies that have especially severe 
        crime problems.--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. The Secretary may 
        allocate a portion of the annual appropriation for this program 
        for public housing agencies in this class.''.
            (2) in subsection (b)--
                    (A) by striking the introductory material preceding 
                paragraph (1) and inserting the following: ``The 
                Secretary shall approve applications under subsection 
                (a)(2) that are not subject to a preference under 
                subsection (a)(2)(B) on the basis of--'';
                    (B) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting 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'' each 
        place it appears; and
            (4) by striking subsection (d).
    (e) Definitions.--Section 5126 of the Public and Assisted Housing 
Drug Elimination Act of 1990 is amended by striking paragraphs (1) and 
(2), and redesignating paragraphs (3) and (4) as paragraphs (1) and 
(2), respectively.
    (f) Implementation.--Section 5127 of the Public and Assisted 
Housing Drug Elimination Act of 1990 is amended by striking ``Cranston-
Gonzalez National Affordable Housing Act: and inserting ``Housing 
Choice and Community Investment Act of 1994''.
    (g) Reports.--Section 5128 of the Public and Assisted Housing Drug 
Elimination Act of 1990 is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) Grantee Reports.--The Secretary'';
            (2) by striking ``drug-related crime in'' and inserting 
        ``crime in and around''; and
            (3) by adding at the end the following new subsection:
    ``(b) HUD Reports.--The Secretary shall submit a report to the 
Congress describing the system used to distribute funds to grantees 
under this section. Such report shall include, at a minimum--
            ``(1) a description of the criteria used to establish the 
        class of public housing agencies with especially severe crime 
        problems and a list of such agencies;
            ``(2) the methodology used to distribute funds among the 
        public housing agencies on the list created under paragraph 
        (1); and
            ``(3) the Secretary's recommendations for any change to the 
        method of distribution of funds.''.
    (h) Authorization of Appropriations.--Section 5130 of the Public 
and Assisted Housing Drug Elimination Act of 1990 is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``$175,000,000 for fiscal year 1993'' and all that follows up 
        to the period and inserting ``$265,000,000 for fiscal year 
        1995, and $265,000,000 for fiscal year 1996'';
            (2) in subsection (b)--
                    (A) in the heading, by striking ``Set-Asides'' and 
                inserting ``Set-Aside''; and
                    (B) by striking the second sentence; and
            (3) by adding at the end the following new subsection (d):
    ``(d) Set-Aside for Public Private Partnerships.--Of any amount 
made available in any fiscal year to carry out this chapter, 2 percent 
of such amount shall be available for contracts, grants, cooperative 
agreements, or interagency agreements with public housing agencies 
(including Indian housing authorities) and other public or private 
organizations, to implement programs which involve joint investment by 
the public and private sectors to conduct activities designed to reduce 
crime and violence in public housing. Such activities may include the 
creation of pilot programs or the replication of successful existing 
programs.''.
    (i) Repeal.--Section 520(k) of the Cranston-Gonzalez National 
Affordable Housing Act is hereby repealed.
    (j) Technical Assistance.--The Public and Assisted Housing Drug 
Elimination Act of 1990 is further amended by adding at the end the 
following new section:

``SEC. 5131. TECHNICAL ASSISTANCE.

    ``Of the amounts appropriated annually for each of fiscal years 
1995 and 1996 to carry out this chapter, the Secretary shall use not 
more than $10,000,000, directly or indirectly, under grants, contracts, 
or cooperative agreements, 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.''.

 authority for assisted housing owners and public housing agencies to 
                                ban guns

    Sec. 222. (a) The United States Housing Act of 1937, as amended by 
section 201, is amended by adding at the end the following new section:

``SEC. 28. AUTHORITY FOR PUBLIC HOUSING AGENCIES AND OWNERS AND LESSORS 
              OF ASSISTED HOUSING TO BAN GUNS.

    ``Notwithstanding any State or local law to the contrary, a public 
housing agency or other owner or lessor of housing assisted under this 
Act may utilize leases which ban the possession, use, and discharge of 
firearms in and around the housing.''.
    (b) Notwithstanding any State or local law to the contrary, the 
owner or lessor of any housing project assisted, or financed with a 
mortgage insured, under a program of the Secretary of Housing and Urban 
Development may utilize leases which ban the possession, use, and 
discharge of firearms in and around the project.

      make criminal records available for screening and evictions

    Sec. 223. Section 6 of the United States Housing Act of 1937 is 
amended by inserting the following new subsection at the end:
    ``(p) Notwithstanding any other provisions of Federal, State, or 
local law, the National Crime Information Center, police departments, 
and any other law enforcement entities shall provide information to 
public housing agencies upon request regarding the criminal records of 
applicants for, or residents of, public housing for the purpose of 
applicant screening, lease enforcement, and eviction. An agency may pay 
a reasonable fee for such information.''.

               Subtitle D--Authorizations and Extensions

                           low-income housing

    Sec. 231. (a) Aggregate Budget Authority.--Section 5(c)(6) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by 
adding at the end the following new sentence: ``The aggregate amount of 
budget authority that may be obligated for assistance referred to in 
paragraph (7) is increased (to the extent approved in appropriation 
Acts) by at least $14,024,876,000 on October 1, 1994, and by at least 
$6,388,276,000 on October 1, 1995.''.
    (b) Utilization of Budget Authority.--Section 5(c)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by 
striking the paragraph designation and all that follows through the end 
of subparagraph (B) and inserting the following:
            ``(7)(A) Using the additional budget authority provided 
        under paragraph (6) and the balances of budget authority that 
        become available during fiscal year 1995, the Secretary shall, 
        to the extent approved in appropriation Acts, reserve authority 
        to enter into obligations aggregating--
                    ``(i) for public housing grants under subsection 
                (a)(2), not more than $413,000,000, of which amount not 
                more than $263,000,000 shall be available for Indian 
                housing;
                    ``(ii) for assistance under section 8, not more 
                than $2,743,000,000, of which $514,275,000 shall be 
                available for 15-year contracts for the Community 
                Investment Demonstration Program under section 6 of the 
                HUD Demonstration Act of 1993, $514,275,000 shall be 
                for homeless assistance and $171,425,000 shall be for 
                assistance for the disabled;
                    ``(iii) for modernization grants under section 
                14(k), not more than $2,786,000,000, including 
                $15,000,000 for training and technical assistance;
                    ``(iv) for assistance under section 8 for loan 
                management, not more than $150,000,000;
                    ``(v) for extensions of contracts expiring under 
                section 8, $5,092,000,000, which shall be for contracts 
                for assistance under section 8 and vouchers under 
                section 8(o) and for loan management assistance under 
                such section;
                    ``(vi) for amendments to contracts under section 8, 
                $2,202,100,000;
                    ``(vii) for adjustments to annual contributions 
                contracts for the costs of providing service 
                coordinators under section 9(a)(1)(b)(2), not more than 
                $30,000,000;
                    ``(viii) for public housing lease adjustments, 
                $21,900,000;
                    ``(ix) for assistance under section 18(e) for 
                replacement housing for units demolished or disposed of 
                under section 18, and for eligible tenants where 
                project owners opt out of the section 8 program, not 
                more than $82,916,000;
                    ``(x) for conversions for leased housing contracts 
                under section 23 of this Act (as in effect immediately 
                before the enactment of the Housing and Community 
                Development Act of 1974) to assistance under section 8, 
                not more than $3,960,000; and
                    ``(xi) for grants under section 24 for 
                revitalization of severely distressed public housing, 
                not more than $500,000,000.
            ``(B) Using the additional budget authority provided under 
        paragraph (6) and the balances of budget authority that become 
        available during fiscal year 1996, the Secretary shall, to the 
        extent approved in appropriation Acts, reserve authority to 
        enter into obligations aggregating--
                    ``(i) for public housing grants under subsection 
                (a)(2), not more than $413,000,000, of which amount not 
                more than $263,000,000 shall be available for Indian 
                housing;
                    ``(ii) for assistance under section 8, not more 
                than $2,811,500,000 of which $527,175,000 shall be 
                available for 15-year contracts for the Community 
                Investment Demonstration program under section 6 of the 
                HUD Demonstration Act of 1993, $527,175,000 shall be 
                for homeless assistance and $175,725,000 shall be for 
                assistance for the disabled;
                    ``(iii) for modernization grants under section 
                14(k), not more than $2,375,000,000, including 
                $15,000,000 for training and technical assistance;
                    ``(iv) for assistance under section 8 for loan 
                management, not more than $150,000,000;
                    ``(v) for extensions of contracts expiring under 
                section 8, such sums as may be necessary, which shall 
                be for contracts for assistance under section 8 and 
                vouchers under section 8(o) and for loan management 
                assistance under such section;
                    ``(vi) for amendments to contracts under section 8, 
                such sums as may be necessary;
                    ``(vii) for adjustments to annual contributions 
                contracts for the costs of providing service 
                coordinators under section 9(a)(1)(B)(ii), not more 
                than $30,000,000;
                    ``(viii) for public housing lease adjustments, 
                $21,900,000;
                    ``(ix) for assistance under section 18(e) for 
                replacement housing for units demolished or disposed of 
                under section 18, and for eligible tenants where 
                project owners opt out of the Section 8 program, not 
                more than $82,916,000;
                    ``(x) for conversions from leased housing contracts 
                under section 23 of this Act (as in effect immediately 
                before the enactment of the Housing and Community 
                Development Act of 1974) to assistance under section 8, 
                not more than $3,960,000; and
                    ``(xi) for grants under section 24 for 
                revitalization of severely distressed public housing, 
                not more than $500,000,000.''.

                   public housing operating subsidies

    Sec. 232. Section 9(c) of the United States Housing Act of 1937 (42 
U.S.C. 1437g(c)) is amended--
            (1) in paragraph (1), by striking ``There'' and all that 
        follows and inserting the following new sentence: ``There are 
        authorized to be appropriated for purposes of providing annual 
        contributions under this section $2,496,000,000 for fiscal year 
        1995 and $2,376,000,000 for fiscal year 1996.'';
            (2) in paragraph (2), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (3) in paragraph (3), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''.

                    family self-sufficiency program

    Sec. 233. The last sentence of section 23(h)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended to read 
as follows: ``Of amounts appropriated under section 9(c), $17,300,000 
for fiscal year 1995 and $17,732,000 for fiscal year 1996 are 
authorized to be used for costs under this paragraph.''.

                public housing family investment centers

    Sec. 234. Section 22(k) of the United States Housing Act of 1937 
(42 U.S.C. 1437t(k)) is amended to read as follows:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $26,342,000 for fiscal year 1995 
and $27,001,000 for fiscal year 1996.''.

                  revised congregate services program

    Sec. 235. Section 802(n)(1) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 8011(n)(1)) is amended by striking 
``$25,000,000'' through ``1992'' and inserting in lieu thereof, 
``$6,267,000 for fiscal year 1995''.

                 indian housing loan guarantee program

    Sec. 236. (a) Limitation on Outstanding Aggregate Principal 
Amount.--Section 184(i)(5)(C) of the Housing and Community Development 
Act of 1992 (12 U.S.C. 1515z-13a(i)(5)(C)) is amended by striking--
            (1) ``fiscal years 1993 and 1994'' and inserting in lieu 
        thereof ``fiscal years 1995 and 1996''; and
            (2) ``not exceeding'' and all that follows, and inserting 
        in lieu thereof, ``not exceeding $22,388,000 for fiscal year 
        1995 and $22,388,000 for fiscal year 1996, to the extent 
        provided in appropriation Acts.''.
    (b) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(7)) is amended to read as follows:
            ``(7) Authorization of Appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section $3,000,000 for fiscal year 1995 and $3,000,000 
        for fiscal year 1996.''.

                       Subtitle E--Applicability

      applicability of public housing amendments to indian housing

    Sec. 241. (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 section 955(b) of the Cranston-Gonzalez 
National Affordable Housing Act, sections 103(a)(1), 112, 114, 116, 
118, 903, and 927 of the Housing and Community Development Act of 1992, 
and sections 301, 302, 303, and 304 of the Multifamily Housing Property 
Disposition Reform Act of 1994 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.
    (d) The application of section 955(b) of the Cranston-Gonzalez 
National Affordable Housing to public housing developed or operated 
pursuant to a contract between the Secretary of Housing and Urban 
Development and an Indian Housing Authority shall apply to any 
volunteer services provided before, on, or after the date of enactment 
of this Act, except that such application may not be construed to 
require the repayment of any wages paid before the date of enactment of 
this Act for services provided before such date.

    TITLE III--HOMEOWNERSHIP; FHA MORTGAGE INSURANCE AUTHORIZATIONS

      Subtitle A--Expand Single Family Homeownership Opportunities

        single family mortgage insurance in revitalization areas

    Sec. 301. (a) Establishment of Program.--Title II of the National 
Housing Act is amended by adding at the end thereof the following new 
section:

       ``single family mortgage insurance in revitalization areas

    ``Sec. 256. (a) General Authority.--The Secretary is authorized to 
insure mortgages in accordance with the provisions of this section, and 
to make commitments to insure such mortgages before the date of their 
execution or disbursement thereon.
    ``(b) Eligible Mortgagors.--A mortgage may be insured under this 
section only with respect to a mortgagor who--
            ``(1) has an income not exceeding 115 percent of the median 
        income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families, except that the 
        Secretary may establish income ceilings higher or lower than 
        115 percent of the median for the area on the basis of the 
        Secretary's findings that such variations are necessary because 
        of prevailing levels of construction costs or unusually high or 
        low family incomes and except that no income ceiling may exceed 
        140 percent of the median for the area;
            ``(2) is a first-time homebuyer, as defined in section 
        104(14) of the Cranston-Gonzalez National Affordable Housing 
        Act;
            ``(3) will occupy the dwelling as his or her principal 
        residence;
            ``(4) has received such pre-purchase counseling as the 
        Secretary deems appropriate with respect to the 
        responsibilities and financial management involved in 
        homeownership;
            ``(5) has not previously been a mortgagor under this 
        section;
            ``(6) has assets not exceeding such amount as the Secretary 
        may prescribe; and
            ``(7) meets such other requirements as the Secretary may 
        prescribe.
    ``(c) Eligible Mortgages.--A mortgage may be insured under this 
section only if the mortgage--
            ``(1) has been made to, and is held by, a mortgagee 
        approved by the Secretary as responsible and able to service 
        the mortgage properly;
            ``(2) covers a one-family dwelling (including a one-family 
        unit in a condominium development and shares representing a 
        one-family unit in a cooperative development) that is located 
        in a revitalization area which is (A) an empowerment zone or 
        enterprise community approved under Subchapter U of Chapter 1 
        of the Internal Revenue Code of 1986, or in an equivalent 
        State-approved enterprise zone, or (B) an urban neighborhood 
        that, in the determination of the Secretary, is targeted by a 
        unit of general local government for revitalization using 
        coordinated affordable housing programs and enhanced supportive 
        services;
            ``(3) involves a principal obligation (exclusive of any 
        charges and costs in connection with the loan, including 
        initial service charges and appraisal and inspection fees) in 
        an amount not exceeding the lesser of--
                    ``(A) $67,500 or 75 percent of the maximum mortgage 
                amount determined under section 203(b)(2)(A), whichever 
                is greater; or
                    ``(B) 100 percent of the appraised value of the 
                property as of the date the mortgage is accepted for 
                insurance: Provided, That in any case where the 
                dwelling is not approved for mortgage insurance before 
                the beginning of construction, the mortgage may not 
                exceed 90 percent of the appraised value of the 
                property as of the date the mortgage is accepted for 
                insurance, unless--
                            ``(i) the dwelling was completed more than 
                        one year before the application for mortgage 
                        insurance;
                            ``(ii) the dwelling was approved for 
                        guaranty, insurance, or a direct loan under 
                        chapter 37 of title 38, United States Code, 
                        before the beginning of construction; or
                            ``(iii) the dwelling is covered by a 
                        consumer protection or warranty plan acceptable 
                        to the Secretary and satisfies all requirements 
                        that would have been applicable if the dwelling 
                        had been approved for mortgage insurance before 
                        the beginning of construction;
            ``(4) has a maturity satisfactory to the Secretary, but not 
        to exceed 30 years from the date of the beginning of 
        amortization of the mortgage;
            ``(5) contains complete amortization provisions 
        satisfactory to the Secretary requiring periodic payments by 
        the mortgagor not in excess of the mortgagor's reasonable 
        ability to pay, as determined by the Secretary;
            ``(6) bears interest at such rate as may be agreed upon by 
        the mortgagor and the mortgagee;
            ``(7) provides, in a manner satisfactory to the Secretary, 
        for the application of the mortgagor's periodic payments 
        (exclusive of the amount allocated to interest and to the 
        premium charge which is required for mortgage insurance as 
        hereinafter provided) to amortization of the principal of the 
        mortgage;
            ``(8) contains such terms and provisions with respect to 
        insurance, repairs, alterations, payment of taxes, default 
        reserves, delinquency charges, foreclosure proceedings, 
        anticipation of maturity, additional and secondary liens, and 
        other matters as the Secretary may prescribe; and
            ``(9) complies with such other terms and conditions as the 
        Secretary may prescribe.
    ``(d) Expenses of Mortgagor.--
            ``(1) In general.--The mortgagor shall pay all charges and 
        costs in connection with the mortgage, including any costs 
        necessary to close the mortgage: Provided, That some or all of 
        these charges and costs may be paid on behalf of the mortgagor 
        by any person or entity (including the seller, a governmental 
        jurisdiction, or a private non-profit entity), under such terms 
        and conditions as the Secretary may prescribe.
            ``(2) Loan to cover expenses.--Any charges or costs paid on 
        behalf of a mortgagor under paragraph (1) may be in the form of 
        a loan secured by the property under such terms and conditions 
        as the Secretary may prescribe. Any such indebtedness--
                    ``(A) shall be a lien subordinate to that of the 
                insured mortgage;
                    ``(B) shall not be part of the loan secured by the 
                mortgage insured under this section, and
                    ``(C) shall not be considered for purposes of 
                determining the maximum mortgage amount under 
                subsection (c)(3).
    ``(e) Mortgage Insurance Premium.--
            ``(1) In general.--In connection with the insurance of a 
        mortgage under this section, the Secretary shall establish and 
        collect a deferred up-front premium and an annual premium, as 
        provided in section 203(c)(2) of this Act and section 
        2103(b)(2) of the Omnibus Budget Reconciliation Act of 1990, 
        except as provided by paragraph (2) of this subsection.
            ``(2) Payment of deferred up-front premium.--
                    ``(A) In general.--The mortgagee shall pay the 
                amount of the deferred up-front premium due under 
                subparagraph (B) at the time of the sale of the 
                property or when the mortgage is paid in full, and 
                shall remit the amount to the Secretary according to 
                such procedures and at such time as the Secretary may 
                prescribe.
                    ``(B) Amount of payment.--The amount of the up-
                front premium payable to the Secretary under paragraph 
                (2) shall be the lesser of--
                            ``(i) the amount of the premium established 
                        under paragraph (1), minus any refund due; and
                            ``(ii) 50 percent of the net appreciation 
                        of the property, as determined by the 
                        Secretary, if the premium is due because of a 
                        sale of the property.
                    ``(C) Definition.--For purposes of the subparagraph 
                (B), `net appreciation of the property' means any 
                increase in the value of the property over the original 
                purchase price, less the reasonable costs of sale and 
                the reasonable costs of improvements made to the 
                property.
            ``(3) Streamline refinancing.--Notwithstanding paragraph 
        (2), no part of the up-front premium established in connection 
        with a mortgage that was insured under this section and that is 
        refinanced under section 223(a)(7) shall be payable under 
        paragraph (2).
    ``(f) Definition.--For purposes of this section, the term 
`appraised value' means the amount set forth in the written statement 
required under section 226, or a similar amount determined by the 
Secretary if section 226 does not apply.
    ``(g) Obligation of General Insurance Fund.--Any mortgagee under a 
mortgage insured under this section is entitled to receive the benefits 
of the insurance as provided in section 204(a) with respect to 
mortgages insured under section 203, and the provisions of subsections 
(b), (c), (d), (e), (f), (g), (h), (j), and (k) of section 204 shall 
apply to the mortgages insured under this section, except that--
            ``(1) all references in section 204 to the Mutual Mortgage 
        Insurance Fund or the Fund shall be construed to refer to the 
        General Insurance Fund;
            ``(2) all references therein to section 203 shall be 
        construed to refer to this section; and
            ``(3) the excess remaining, referred to in section 
        204(f)(1), shall be retained by the Secretary and credited to 
        the General Insurance Fund.
    ``(h) Limit on Insured Mortgages.--The aggregate dollar amount of 
commitments to insure mortgage under this section for any fiscal year 
may not exceed 5 percent of the amount of commitments to insure 
mortgages covering one- to four-family properties that were made by the 
Secretary under this title during the preceding fiscal year. However, 
the Secretary may make commitments to insure mortgages for up to an 
additional 5 percent in the case of properties in empowerment zones or 
enterprise communities approved under subchapter U of Chapter 1 of the 
Internal Revenue Code of 1986, or in equivalent State-approved 
enterprise zones. No more than 20 percent of the dwelling units located 
in a revitalization area may be subject to a mortgage insured under 
this section.''.
    (b) Implementation.--The Secretary shall, by interim rule published 
for effect in the Federal Register, establish such requirements as may 
be necessary to carry out the provisions of subsection (a). The 
Secretary shall issue final regulations based on the interim rule after 
notice and opportunity for public comment.
    (c) Evaluation.--No later than 48 months after the date of 
implementation, the Secretary shall evaluate the program and, if 
appropriate, recommend to Congress legislation to terminate or improve 
it.

         maximum dollar amount for fha single family mortgages

    Sec. 302. Subparagraph (A) of the first sentence of section 
203(b)(2) of the National Housing Act is amended by striking clause 
(ii) and all that follows through ``1992;'' and inserting in lieu 
thereof the following--
                            ``(ii) 85 percent of the dollar amount 
                        limitation determined under section 305(a)(2) 
                        of the Federal Home Loan Mortgage Corporation 
                        Act for a residence of the applicable size;
                except that the applicable dollar amount limitation in 
                effect for any area under this subparagraph (A) may not 
                be less than the greater of--
                                    ``(I) the dollar amount limitation 
                                in effect under this section for the 
                                area on the date of enactment of the 
                                Housing Choice and Community Investment 
                                Act of 1994; or
                                    ``(II) the applicable average area 
                                purchase price determined under section 
                                143(e)(2) of the Internal Revenue Code 
                                of 1986, adjusted by the Secretary to 
                                reflect a single amount using purchase 
                                prices for residences that have been 
                                previously occupied, and for residences 
                                that have not been so occupied, which 
                                amount shall be adjusted by the 
                                Secretary annually on the basis of the 
                                Constant Quality Housing Price 
                                Index;''.

                        streamlined refinancing

                         for hud-held mortgages

    Sec. 303. (a) Section 223(a) of the National Housing Act is 
amended--
            (1) in paragraph (7), by striking the colon immediately 
        preceding the second proviso and all that follows though ``and 
        the mortgagee'';
            (2) by redesignating paragraph (8) as paragraph (9) and 
        inserting the following new paragraph immediately after 
        paragraph (7):
            ``(8) given to refinance a mortgage held by the Secretary, 
        upon such terms and conditions as the Secretary may prescribe, 
        covering property on which there is located a one- to four-
        family residence, or a one-family unit in a condominium 
        project, which mortgage was formerly insured under this Act and 
        subsequently assigned to the Secretary: Provided, That the 
        mortgagor has not previously refinanced a mortgage pursuant to 
        this paragraph: Provided further, That the mortgagor has made 
        all payments due under the note secured by the existing 
        mortgage and all payments due under the note for at least the 
        previous six months, or the mortgagor is under a forbearance 
        agreement and has made all payments due under the notice 
        secured by the existing mortgage for at least the previous six 
        months: Provided further, That the principal amount of the 
        refinancing mortgage may not exceed the outstanding principal 
        balance of the existing mortgage by more than additional 
        amounts owed by the mortgagor due to the delinquency and to the 
        receipt of assignment assistance under section 230: Provided 
        further, That the monthly payment due under the refinancing 
        mortgage may not exceed the monthly payment due under the 
        existing mortgage: Provided further, That the refinancing 
        mortgage may have a term not more than 12 years in excess of 
        the unexpired term of the assigned mortgage: Provided further, 
        That the refinancing mortgage may be insured under section 
        203(b) or 221(d)(2) of this Act, at the option of the 
        mortgagee, or under section 234(c) of this Act in the case of a 
        condominium: Provided further, That a refinancing mortgage 
        insured under section 221(d)(2) shall involve a principal 
        obligation in an amount not to exceed 50 percent of the 
        applicable dollar limitation for a one- to four-family 
        residence under section 203(b)(2); or''; and
            (3) by adding the following new paragraph after paragraph 
        (9), as redesignated by paragraph (2) of this section--
            ``(10) A mortgage of the character described in paragraphs 
        (1) through (6) of this subsection shall have a maturity and a 
        principal obligation not in excess of the maximums prescribed 
        under the applicable section or title of this Act, except that 
        in no case may the principal obligation of a mortgage referred 
        to in paragraph (5) of this subsection exceed 90 percent of the 
        appraised value of the mortgage property, and shall bear 
        interest at such rate as may be agreed upon by the mortgagor 
        and the mortgagee.''.
    (b) The Secretary of Housing and Urban Development may implement 
the authority to refinance a mortgage held by the Secretary under 
section 223(a)(8) of the National Housing Act, as added by subsection 
(a) of this section, by notice published in the Federal Register 
setting forth such requirements as may be necessary.
    (c) The authority to refinance a mortgage held by the Secretary of 
Housing and Urban Development under such section 223(a)(8) shall 
terminate 30 months after the date of enactment of this Act. The total 
number of mortgages refinanced under such section 223(a)(8) may not 
exceed 20,000.

              innovative affordable housing demonstrations

    Sec. 304. (a) The Secretary of Housing and Urban Development (the 
``Secretary'') may carry out demonstrations which have the potential to 
increase homeownership opportunities through the insurance under the 
National Housing Act of alternative mortgage instruments, and through 
partnerships with the Federal Home Loan Mortgage Corporation and the 
Federal National Mortgage Association, with the Federal Home Loan Banks 
and their members, and with State and local housing finance agencies, 
in connection with meeting their responsibilities to achieve affordable 
housing goals. These demonstrations may include testing the pricing of 
different types of insured mortgage instruments, partnerships with the 
Corporation, the Association, or the Federal Home Loan Banks under 
which mortgage insurance provided by the Secretary shall be used as a 
credit enhancement in connection with their mortgage lending and 
secondary market activities, and partnership activities to achieve both 
homeownership and the stabilization or revitalization of neighborhoods 
or to address special needs.
    (b) Each demonstration may be approved for a term of up to three 
years. The term of an insured mortgage or activity may extend beyond 
the term of the demonstration. The total number of mortgages insured 
pursuant to demonstrations under this section in any fiscal year may 
not exceed 10 percent of the number of single family mortgages insured 
in the previous fiscal year. The total number of mortgages insured 
pursuant to any one demonstration in any fiscal year may not exceed 5 
percent of the number of single family mortgages insured in the 
previous fiscal year.
    (c) The Secretary may waive requirements of the National Housing 
Act and any other applicable statutory and regulatory requirements that 
the Secretary determines are not consistent with the purposes of this 
section.
    (d) The general insurance fund created by section 519 of the 
National Housing Act shall be available as a revolving fund for 
carrying out mortgage insurance demonstrations under this section 
involving alternative mortgage transactions. The Secretary shall 
determine the terms and conditions of insurance, notwithstanding any 
provision of the National Housing Act.
    (e) In approving a demonstration under this section, the Secretary 
may establish such requirements as the Secretary considers to be 
appropriate to further its purposes.
    (f) Each demonstration under this section shall--
            (1) be approved personally by the Secretary;
            (2) be consistent with the overall purposes of the program 
        or programs under which the waiver is granted;
            (3) be evaluated; and
            (4) 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.
    (g) For each demonstration, there shall be prepared an annual 
progress report. The Secretary shall submit a report to Congress within 
one year after completion of each demonstration, describing the results 
of the demonstration and making any recommendations for legislation.
    (h) There is authorized to be appropriated $1,000,000 for the 
evaluation of demonstrations under this section.
    (i) The term ``alternative mortgage instruments'' includes 
mortgages within the definition of ``alternative mortgage transaction'' 
in section 803(1) of the Alternative Mortgages Transaction Party Act of 
1982.

         single family risk-sharing mortgage insurance program

    Sec. 305. (a) The National Housing Act is amended by adding the 
following new section at the end of title II:

       ``single family risk-sharing with state and local agencies

    ``Sec. 257. (a) Authority.--Notwithstanding any other provision of 
this Act inconsistent with this section, the Secretary may insure and 
make commitments to insure under this section mortgages on single 
family properties under risk-sharing mortgage insurance programs 
established with one or more State or agencies. Only mortgages executed 
in connection with the acquisition of a single family property or for 
the refinancing of a mortgage insured under this section shall be 
eligible. Under these programs, the Secretary insures a portion of the 
mortgage and the State or local agency insures the remainder.
    ``(b) Purposes.--The purposes of the program under this section are 
(1) to increase the availability of single family mortgage financing in 
areas where there is need for mortgage insurance under this Act that 
cannot be met due to particularly high average median house prices in 
the area, and (2) to foster arrangements with State and local agencies 
to share the risk of mortgage insurance.
    ``(c) Applications.--(1) The Secretary may approve an application 
submitted by a State or local agency to establish a risk-sharing 
program under this section, based on a determination that the State or 
local agency demonstrates that (A) it has the legal authority under 
State law and, where applicable, local law to participate in the risk-
sharing mortgage insurance program; (B) it has carried out, or has the 
potential to carry out, a financially sound, efficient, and effective 
mortgage insurance program; and (C) it has the ongoing administrative 
and financial capacity necessary to carry out a program under this 
section.
    ``(2) For a violation of requirements and procedures under the 
risk-sharing agreement between the State or local agency and the 
Secretary or for other good cause, the Secretary may cancel approval of 
a State or local agency under this section by giving notice to the 
State or local agency. The cancellation shall be effective upon receipt 
of the notice by the agency or at a later date specified by the 
Secretary. A decision by the Secretary to cancel approval shall be 
final and conclusive and shall not be subject to judicial review.
    ``(d) Delegation of Authority To Insure to State and Local 
Agencies.--Pursuant to a risk-sharing agreement with a State or local 
agency, the Secretary shall delegate the authority to insure and make 
commitments to insure the portion of mortgages to be insured by the 
Secretary under this section to the State or local agency. The risk-
sharing agreement shall contain such other matters as the Secretary and 
the State or local agency agree.
    ``(e) Underwriting Standards and Loan Terms and Conditions.--The 
State or local agency shall adopt underwriting standards and loan terms 
and conditions for purposes of underwriting loans to be insured under 
this section without regard to requirements of this Act other than this 
section, section 203(g), and section 203(r)(2), subject to review and 
approval by the Secretary.
    ``(f) Mortgage Insurance Premiums.--(1) The State or local agency 
shall require the payment of mortgage insurance premiums by mortgagors.
    ``(2) The Secretary shall establish policies and procedures for the 
sharing of premiums between the Secretary and the State or local 
agency, based on the relative risk to, and administrative costs of, the 
Secretary and the State or local agency. The share paid to the 
Secretary shall not be less than an amount necessary to cover the risk 
to, and administrative costs of, the Secretary.
    ``(g) Limitations on Principal Mortgage Amount.--(1) The portion of 
the mortgage insured under this section by the Secretary may not exceed 
an amount equal to the lesser of (A) 80 percent of the appraised value 
of the property, or (B) the maximum amount the Secretary may insure 
under section 203(b) of this Act for the area (but not including any 
amount for a mortgage insurance premium).
    ``(2) The total principal amount of a mortgage insured under this 
section by the Secretary and the State or local agency (A) shall exceed 
the maximum amount the Secretary may insure under subparagraph (A) of 
the first sentence of section 203(b)(2) of this Act for the area, and 
(B) may not exceed the conforming loan limitation determined under 
section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for 
a residence of the applicable size, as adjusted annually.
    ``(3) The principal obligation of a mortgage may not exceed an 
amount determined in accordance with subparagraph (B) of the first 
sentence of section 203(b)(2) of this Act plus the mortgage insurance 
premium.
    ``(4) Notwithstanding paragraph (2)(A) or (3), in the case of 
refinancing of an existing mortgage insured under this section, the 
principal obligation of a refinancing mortgage may not exceed the 
outstanding principal balance of the existing mortgage plus any 
mortgage insurance premium.
    ``(h) Insurance Claims.--(1) In the case of a default and 
foreclosure of a mortgage insured under this section, the mortgagee may 
file a claim with the State or local agency for insurance benefits in 
accordance with requirements established by the State or local agency 
and approved by the Secretary. The agency shall pay the full amount of 
the claim owed to the mortgagee. If the loss on the insured mortgage 
exceeds the amount of insurance by the agency, the Secretary shall 
reimburse the agency for the difference.
    ``(2) The insurance of a mortgage under this section by the 
Secretary shall be an obligation of the General Insurance Fund created 
pursuant to section 519 of this Act.
    ``(i) Inapplicability of the Assignment Program.--Section 230 shall 
not apply to mortgages insured under the program authorized by this 
section.
    ``(j) Restriction on GNMA Securitization.--The Government National 
Mortgage Association shall not securitize any loans insured under this 
section.
    ``(k) Definitions.--As used in this section:
            ``(1) The term `local agency' shall mean an agency of a 
        unit of general local government, as defined by the Secretary, 
        which has the authority to insure mortgages and to participate 
        with the Secretary in the single family risk-sharing program 
        under this section, or an agency or instrumentality of a local 
        agency if the agency or instrumentality has such authority.
            ``(2) The term `State agency' shall mean an agency of a 
        State which has the authority to insure mortgages and to 
        participate with the Secretary in the single family risk-
        sharing program under this section, or an agency or 
        instrumentality of a State agency if the agency or 
        instrumentality has such authority.
            ``(3) The term single family property' means a property 
        upon which there is located a dwelling designed principally for 
        occupancy by one family, and includes a condominium and a 
        cooperative.
            ``(4) The term `State' shall mean the several States and 
        Puerto Rico, the District of Columbia, Guam, the Trust 
        Territory of the Pacific Islands, American Samoa, and the 
        Virgin Islands.''.
    (b) The Secretary of Housing and Urban Development may implement 
the program authorized by subsection (a) by entering into risk-sharing 
agreements negotiated with State agencies, notwithstanding any 
otherwise applicable requirement for regulations or notice published in 
the Federal Register and notwithstanding any otherwise applicable 
regulations of the Secretary.

                 homeownership counseling and outreach

    Sec. 306. (a) Section 106(a) of the Housing and Community 
Development Act of 1968 is amended--
            (1) in paragraph (1), by--
                    (A) inserting ``or consortia of organizations'' 
                after ``organizations'';
                    (B) striking the ``and'' at the end of clause 
                (iii);
                    (C) striking the period from the end of clause (iv) 
                and inserting in lieu thereof ``; and''; and
                    (D) inserting at the end the following new clause 
                (v):
                            ``(v) the provision of outreach activities 
                        designed to improve the access of low- and 
                        moderate-income households to homeownership and 
                        sources of mortgage credit.'';
            (2) in the second sentence of paragraph (2), by--
                    (A) striking ``clause (iii)'' and inserting in lieu 
                thereof ``clauses (iii) and (v)''; and
                    (B) by inserting after ``organizations'' the 
                following: ``or consortia of organizations''; and
            (3) by inserting at the end the following new paragraph:
            ``(4) the Secretary of Housing and Urban Development may 
        contract with national, State, or community-based entities, and 
        consortia of such entities, to carry out activities under 
        paragraph (1)(v). Contractors shall be selected on a 
        competitive basis, in accordance with selection criteria 
        determined by the Secretary. The contractors shall carry out 
        activities prescribed by the Secretary, including activities 
        such as--
                    ``(A) leveraging Federal funds with other sources 
                of funding to support activities under its counseling 
                program, including leveraging private, community-based 
                resources for the purpose of assisting prospective 
                mortgagors achieve homeownership;
                    ``(B) conducting outreach and marketing to 
                prospective homebuyers, particularly those in targeted 
                neighborhoods with a high proportion of low- and 
                moderate-income and minority renter households;
                    ``(C) coordinating a proactive pre-purchase 
                homeownership strategy that includes linking other HUD-
                approved counseling providers and community-based 
                organizations, assisting prospective homebuyers to 
                repair credit, educating potential homebuyers on the 
                requirements of homeownership, providing technical 
                assistance, assisting in the packaging of mortgage loan 
                applications, matching a family's resources with 
                appropriate Government and private sector homeownership 
                assistance programs, and offering post-purchase and 
                default-prevention counseling to help homeowners retain 
                their homes; and
                    ``(D) serving as an advocate for homebuyers by 
                working with the mortgage lending industry with regard 
                to overcoming mortgage credit barriers to 
                homeownership.''.
    (b) Section 106(c)(9) of such Act is amended by striking 
``September 30, 1994'' and inserting in lieu thereof ``September 30, 
1996''.
    (c) Section 106 of such Act is amended by adding at the end the 
following new subsection:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated for the purposes of this section, without fiscal year 
limitation, such sums as may be necessary, except that there are 
authorized to be appropriated $50,000,000 for each of fiscal years 1995 
and 1996. Any amounts so appropriated shall remain available until 
expended.''.
    (d) Section 106(a)(3) of such Act is hereby repealed.

         Subtitle C--National Homeownership Fund Demonstration

                           amendments to naha

    Sec. 311. Subtitle A of title III of the Cranston-Gonzalez National 
Affordable Housing Act is amended to read as follows:

        ``Subtitle A--National Homeownership Fund Demonstration

``SEC. 301. SHORT TITLE.

    ``This subtitle may be cited as the `National Homeownership Fund 
Demonstration Act'.

``SEC. 302. PROGRAM AUTHORITY.

    ``(a) In General.--The Secretary may provide assistance, in 
accordance with the provisions of this subtitle, for first-time 
homebuyers (including homebuyers buying shares in limited equity 
cooperatives) in the following manners:
            ``(1) Downpayment assistance.--Assistance payments through 
        grantees to provide amounts for downpayments (including closing 
        costs and other costs payable at the time of closing) on 
        mortgages for such homebuyers.
            ``(2) Second mortgage assistance.--Assistance payments 
        through grantees to provide loans with payment of interest and 
        principal, as determined by the grantee.
            ``(3) Capitalization of revolving loan funds.--Grants to 
        public organizations or agencies to establish revolving loan 
        funds to provide homeownership assistance to eligible first-
        time homebuyers consistent with the requirements of this 
        subtitle. Such grants shall be matched by an equal amount of 
        local investment in such revolving loan funds. Any proceeds or 
        repayments from loans made under this paragraph shall be 
        returned to the revolving loan fund established under this 
        paragraph to be used for purposes related to this section.
    ``(b) Eligibility Requirements.--Assistance payments under this 
subtitle may be made only to homebuyers and for mortgages meeting the 
following requirements:
            ``(1) First-time homebuyer.--The homebuyer is an individual 
        who--
                    ``(A)(i) (and whose spouse) has had no ownership in 
                a principal residence during the 3-year period ending 
                on the date of purchase of the property with respect to 
                which assistance payments are made under this subtitle;
                    ``(ii) is a displaced homemaker who, except for 
                owning a home with his or her spouse or residing in a 
                home owned by the spouse, meets the requirements of 
                clause (i); or
                    ``(iii) is a single parent who, except for owning a 
                home with his or her spouse or residing in a home owned 
                by the spouse while married, meets the requirements of 
                clause (i); and
                    ``(B) meets the requirements of subparagraph (A) 
                (i), (ii), or (iii), except for owning, as a principal 
                residence, a dwelling unit whose structure is not 
                permanently affixed to a permanent foundation in 
                accordance with local or other applicable regulations.
            ``(2) Maximum income of homebuyer.--The aggregate annual 
        income of the homebuyer and the members of the family of the 
        homebuyer residing with the homebuyer, for the 12-month period 
        preceding the date of the application of the homebuyer for 
        assistance under this subtitle, does not exceed 80 percent of 
        the median income for a family of 4 persons (adjusted by family 
        size) in the applicable metropolitan statistical area (or such 
        other area that the Secretary determines for areas outside of 
        metropolitan statistical areas). The Secretary shall provide 
        for certification of such income for purposes of initial 
        eligibility for assistance payments under this subtitle.
            ``(3) Principal residence.--The property securing the 
        mortgage is a single-family residence or unit in a cooperative 
        or condominium and is the principal residence of the homebuyer.
            ``(4) Maximum mortgage amount.--The principal obligation of 
        the first mortgage and any second mortgage assistance provided 
        under this subtitle does not exceed the principal amount that 
        could be insured with respect to the property under section 
        203(b) of the National Housing Act.
    ``(c) Terms of Assistance.--
            ``(1) Security.--Assistance payments under this subtitle 
        shall be secured by a lien on the property involved. The lien 
        shall be subordinate to all mortgages existing on the property 
        on the date on which the first assistance payment is made.
            ``(2) Repayment if property ceases to be principal 
        residence.--If the property for which assistance payments are 
        made ceases to be the principal residence of the first-time 
        homebuyer (or the family of the homebuyer), during a time 
        period specified by the Secretary or the grantee, whichever is 
        longer, the Secretary may provide for the repayment of all or a 
        portion of the assistance payments.
    ``(d) Allocation.--
            ``(1) In general.--Each applicant shall submit an 
        application in such form and in accordance with such procedures 
        as the Secretary shall establish.
            ``(2) Minimum requirements.--An application under this 
        section shall contain a plan that describes how the applicant 
        will achieve the objectives of this subtitle. The application 
        shall contain at a minimum--
                    ``(A) a description of the geographic area to be 
                covered;
                    ``(B) the characteristics of the households to be 
                served;
                    ``(C) a description and commitment of other public 
                and private resources available in connection with 
                assistance under this subtitle;
                    ``(D) a description of any secondary market 
                involvement and commitment;
                    ``(E) a description and commitment of any non-
                traditional capital resources;
                    ``(F) provision of housing counseling assistance 
                available to assist borrowers;
                    ``(G) a description of any restrictions on resale 
                and profits;
                    ``(H) a description of resources available to 
                undertake rehabilitation of properties when needed;
                    ``(I) the process for award and disbursement of 
                funds to borrowers; and
                    ``(J) the past history of the applicant in 
                undertaking similar projects.
            ``(3) Selection.--Amounts available in any fiscal year for 
        assistance under this subtitle shall be allocated to States 
        (including State agencies) or non-profit housing intermediaries 
        for homebuyers through a national competition in accordance 
        with criteria established by the Secretary. These criteria 
        shall include the extent to which the applicant has experience 
        in providing homeownership opportunities for low- and moderate-
        income households.

``SEC. 303. DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--
                    ``(A) is an adult;
                    ``(B) has not worked full-time full-year in the 
                labor force for a number of years, but has during such 
                years, worked primarily without remuneration to care 
                for the home and family; and
                    ``(C) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            ``(2) Single parent.--The term `single parent' means an 
        individual who--
                    ``(A) is unmarried or legally separated from a 
                spouse; and
                    ``(B)(i) has 1 or more minor children for whom the 
                individual has custody or joint custody; or
                    ``(ii) is pregnant.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(4) State.--The term `State' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, the Trust Territory 
        of the Pacific Islands, and any other territory or possession 
        of the United States.

``SEC. 304. REPORT.

    ``The Secretary shall submit to the Congress, not later than 6 
months following the last obligation of assistance by grantees under 
this subtitle, a report containing a description of the activities 
carried out under this subtitle and an analysis of the effectiveness of 
such assistance in assisting first-time homebuyers.

``SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for assistance payments 
under this subtitle $100,000,000 for fiscal year 1995 and such sums as 
may be necessary for fiscal year 1996. Any amount appropriated under 
this section shall remain available until expended.''.

                       Subtitle C--Authorizations

                        flexible subsidy program

    Sec. 321. (a) Authorization of Appropriations.--Section 201(j)(5) 
of the Housing and Community Development Amendments of 1978 (12 U.S.C. 
1715z-1a(j)(5)) is amended to read as follows:
            ``(5) There are authorized to be appropriated for 
        assistance under the flexible subsidy fund not to exceed 
        $50,000,000 for fiscal year 1995 and not to exceed $50,000,000 
        for fiscal year 1996.''.
    (b) Use of Section 236 Rental Assistance Fund Amounts.--Section 
236(f)(3) of the National Housing Act (12 U.S.C. 1715z-1(f)(3)) is 
amended by striking ``September 30, 1994'' and inserting ``September 
30, 1996''.

              service coordinators in multifamily housing

    Sec. 322. There are authorized to be appropriated for assistance 
for service coordinators under section 676 of the Housing and Community 
Development Act of 1992, section 8(d)(2)(F)(i) of the United States 
Housing Act of 1937, section 202 of the Housing Act of 1959, and 
section 811 of the Cranston-Gonzalez National Affordable Housing Act, 
$16,300,000 for fiscal year 1995 and $16,700,000 for fiscal year 1996.

      limitation on gnma guarantees for mortgage-backed securities

    Sec. 323. Section 306(g)(2) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as 
follows:
            ``(2) Notwithstanding any other provision of law and 
        subject only to the absence of qualified requests for 
        guarantees, to the authority provided in this subsection, and 
        to the extent of or in such amounts as any funding limitation 
        approved in appropriation Acts, the Association shall enter 
        into commitments to issue guarantees under this subsection in 
        an aggregate amount of $130,000,000,000 during fiscal year 1995 
        and $130,000,000,000 during fiscal year 1996. There is 
        authorized to be appropriated such sums as may be necessary to 
        cover the costs (as such term is defined in section 502 of the 
        Congressional Budget Act of 1974) of guarantees issued under 
        this Act by the Association.''.

                  limitation on fha insuring authority

    Sec. 324. Section 531(b) of the National Housing Act (12 U.S.C. 
1735f-9(b)) is amended to read as follows:
    ``(b) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for insurance, to the authority 
provided in this Act, and to the limitation in subsection (a), the 
Secretary shall enter into commitments to insure mortgages under this 
Act with an aggregate principal amount of $104,666,794,000 during 
fiscal year 1995 and $91,037,845,000 during fiscal year 1996.''.

    TITLE IV--ECONOMIC OPPORTUNITY; EXPANSION OF AFFORDABLE HOUSING

 Subtitle A--Economic Opportunity Economic Opportunities for Residents 
                        in HUD-assisted Programs

    Sec. 401. Section 3 of the Housing and Urban Development Act of 
1968 is amended--
            (1) in subsection (c)(1)(B)(i), by inserting ``, and to 
        noncustodial parents of children living in such developments 
        and subject to court-ordered or administratively-ordered 
        support agreements'' before the period;
            (2) by adding at the end of subsection (c) the following 
        new paragraph (3):
            ``(3) Establishment of economic opportunity centers.--
                    ``(A) In general.--The Secretary shall establish 
                Economic Opportunity Centers, to provide services which 
                will link low-income residents with jobs generated by 
                housing and community development assistance.
                    ``(B) Eligible grantees.--The Secretary may make 
                grants to State or local governments or their agencies, 
                public housing agencies, including Indian housing 
                authorities, public or private non-profit organizations 
                or institutions (including community action agencies), 
                or other public or private entities--
                            ``(i) which are carrying out training, 
                        employment development, education, or other 
                        economic development activities in communities 
                        which receive housing and community development 
                        assistance;
                            ``(ii) which provide housing, neighborhood 
                        revitalization, community organizing, income 
                        support or crime prevention programs to low- 
                        and very low-income persons in communities 
                        which receive housing and community development 
                        assistance; or
                            ``(iii) which are administering housing or 
                        community development programs which generate a 
                        significant number of employment opportunities.
                For fiscal year 1995, the Secretary may make grants 
                under this paragraph only to public housing agencies, 
                including Indian housing authorities.
                    ``(C) Selection criteria.--The Secretary shall 
                select grantees on a competitive basis, taking into 
                account the demonstrated ability of the applicants to--
                            ``(i) assess training and support service 
                        needs;
                            ``(ii) develop or provide employment 
                        development skills to low-income persons;
                            ``(iii) coordinate and utilize existing 
                        public and private training, employment, and 
                        business assistance funds or services;
                            ``(iv) establish or maintain working 
                        relationships with unions or other construction 
                        trade associations, and public and private 
                        employers; and
                            ``(v) perform such other functions as the 
                        Secretary may approve.
                    ``(D) Eligible activities.--Amounts received for 
                the operation of Economic Opportunity Centers may be 
                used for financial and other assistance to individual 
                residents to facilitate their participation in both 
                existing and newly created job training programs and 
                employment opportunities. The agency may engage in 
                activities such as developing facilities for training 
                and support services; assessing training and service 
                needs of public housing residents; funding essential 
                training and support services that are not otherwise 
                funded; establishing a job bank of positions in 
                connection with programs subject to this section; 
                assisting contractors, contractor associations, and 
                joint labor-management committees to develop and fund 
                training and apprenticeship initiatives and programs; 
                training and funding resident councils, resident 
                management corporations, neighborhood groups, and 
                community-based organizations to provide information 
                about the requirements of this section and economic 
                opportunities; funding the start-up costs of 
                businesses; providing links with related government and 
                private programs; and such other activities as the 
                Secretary may approve.
                    ``(E) Authorization of appropriations.--There are 
                authorized to be appropriated for grants to carry out 
                this paragraph, $17,500,000 for fiscal year 1995 and 
                such sums as may be necessary for fiscal year 1996.''; 
                and
            (3) by adding at the end the following new subsections:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated--
            ``(1) $4,000,000 in fiscal year 1995 and such sums as may 
        be necessary in fiscal year 1996 for the Secretary to establish 
        and sustain employment training and business initiatives under 
        this section with other Federal agencies, through interagency 
        agreements providing for the transfer of amounts appropriated 
        under this paragraph to other Federal agencies; and
            ``(2) $3,500,000 in fiscal year 1995 and such sums as may 
        be necessary in fiscal year 1996 for the Secretary to carry out 
        a management and technical assistance program for the 
        development of materials, systems, services, and information 
        designed to enhance (A) the capacity of the Secretary to manage 
        activities under this section; and (B) the capacity of public 
        housing agencies, contractors, and other entities to comply 
        with the requirements of this section.
    ``(i) Other Resources.--The Secretary may permit expenditure of 
funds appropriated for programs subject to this section for job-related 
activities necessary to implement this section, including but not 
limited to training, supervision of trainees, and job recruitment.''.

             resident management/tenant opportunity program

    Sec. 402. Section 20 of the United States Housing Act of 1937 is 
amended--
            (1) by striking the section heading and inserting in lieu 
        thereof: ``tenant opportunity program'';
            (2) in the first two sentences of subsection (b), by 
        striking ``resident management program'' the two places it 
        appears and inserting ``tenant opportunity program'';
            (3) in subsection (f)--
                    (A) by striking the subsection caption and 
                inserting in lieu thereof: ``Tenant Opportunity 
                Assistance'';
                    (B) in paragraph (1), by adding the following new 
                sentences at the end: ``In addition, the Secretary may 
                provide financial assistance to resident management 
                corporations or resident councils for activities 
                sponsored by resident organizations for economic 
                uplift, such as job training, economic development, 
                security, and other self-sufficiency activities beyond 
                those related to the management of public housing. 
                Resident councils or resident management corporations 
                may jointly apply for financial assistance with public 
                housing agencies.'';
                    (C) in paragraph (2), by striking ``$100,000'' and 
                inserting ``$250,000'';
                    (D) by inserting at the end the following new 
                paragraph:
            ``(5) 10 percent set-aside.--The Secretary may use up to 10 
        percent of the amounts appropriated under paragraph (3) to 
        enter into contracts with (A) various entities for monitoring, 
        evaluation, technical assistance, and information dissemination 
        in connection with activities under this subsection; and (B) 
        public housing agencies, resident organizations, and public or 
        private entities for innovative public/private initiatives that 
        support the economic development and increased self-sufficiency 
        of public housing residents. Eligible activities related to 
        economic development and self-sufficiency may include such 
        programs as counseling, treatment for substance abuse, child 
        care, remedial education, job training, and development of 
        resident businesses.''; and
                    (E) Paragraph (3) is amended to read as follows:
            ``(3) Funding.--Of any amounts made available for financial 
        assistance under section 14, the Secretary may use to carry out 
        this subsection $85,000,000 for fiscal year 1995 and such sums 
        as may be necessary for fiscal year 1996.''.

                   Subtitle B--Section 8 Initiatives

                          choice in residency

    Sec. 411. (a) Section 8(o) of the United States Housing Act of 
1937, as amended by section 412 of this Act, is further amended by 
adding the following new paragraph at the end:
            ``(16)(A) The Secretary may make grants to public housing 
        agencies and nonprofit organizations for the purpose of 
        providing counseling to applicants for and recipients of 
        tenant-based assistance. The counseling shall be designed to 
        enable families to select units in areas without high 
        concentrations of persons living in poverty, as determined by 
        the Secretary. Eligible activities may include activities such 
        as--
                    ``(i) advising families on strategies for obtaining 
                appropriate housing;
                    ``(ii) providing transportation assistance and 
                other services to give families access to areas without 
                high concentrations of persons living in poverty;
                    ``(iii) continuing advice and counseling to assist 
                families after moving to areas without high 
                concentrations of persons living in poverty; and
                    ``(iv) undertaking aggressive outreach to potential 
                owners to expand the availability of housing in areas 
                without high concentrations of persons living in 
                poverty.
            ``(B) The Secretary may invite public housing agencies to 
        apply for grants under this paragraph. In addition, the 
        Secretary may select, on a competitive basis, public housing 
        agencies and nonprofit organizations for grants under this 
        paragraph. In making funding decisions, the Secretary may take 
        into account evidence in the application of commitments of non-
        Federal assistance to be used in support of the proposed 
        counseling program.
            ``(C) The Secretary may take failure by a public housing 
        agency to apply for a grant under this paragraph and the 
        effectiveness of an agency's program into account in 
        determining amount of future funding under this subsection.
            ``(D) The budget authority available under section 5(c) of 
        this Act for tenant-based assistance under this section is 
        authorized to be increased by $149,100,000, on or after October 
        1, 1995, and by $152,900,000, on or after October 1, 1986, for 
        grants under this paragraph.''.
    (b) The amendment made by subsection (a) shall apply to assistance 
under contract on the date of enactment of this Act as well as to 
assistance placed under contract after the date of enactment.

             merger of the certificate and voucher programs

    Sec.  412. (a) Merger of Certificate and Voucher Programs.--Section 
8(o) of the United States Housing Act of 1937 is amended to read as 
follows:
    ``(o) Certificate Program.--(1) The Secretary may provide 
assistance for tenant-based assistance using a payment standard in 
accordance with this subsection. The payment standard shall be used to 
determine the monthly assistance which may be paid for any family, as 
provided in paragraph (2) of this subsection, and shall not exceed the 
fair market rental established under subsection (c). However, the 
payment standard for a designated part of the market area may exceed 
the fair market rental by not more than 20 percent, where the Secretary 
determines that higher market rents in that part of the market area 
justify a higher payment standard. The Secretary may require a public 
housing agency to submit proposed payment standards to the Secretary 
for approval.
    ``(2)(A) For a family receiving tenant-based assistance, where the 
rent (including the amount allowed for tenant-paid utilities) does not 
exceed the payment standard, the monthly assistance payment shall be 
the amount by which the rent exceeds the highest of the following 
amounts, rounded to the nearest dollar:
            ``(i) 30 percent of the family's monthly adjusted income.
            ``(ii) 10 percent of the family's monthly income.
            ``(iii) If the family is receiving payments for welfare 
        assistance from a public agency and a part of such payments, 
        adjusted in accordance with the family's actual housing costs, 
        is specifically designated by such agency to meet the family's 
        housing costs, the portion of such payments which is so 
        designated.
    ``(B) For a family receiving tenant-based assistance, where the 
rent (including the amount allowed for tenant-paid utilities) exceeds 
the payment standard, the monthly assistance payment shall be the 
amount by which the applicable payment standard exceeds the highest of 
the following amounts, rounded to the nearest dollar:
            ``(i) 30 percent of the family's monthly adjusted income.
            ``(ii) 10 percent of the family's monthly income.
            ``(iii) If the family is receiving payments for welfare 
        assistance from a public agency and a part of such payments, 
        adjusted in accordance with the family's actual housing costs, 
        is specifically designated by such agency to meet the family's 
        housing costs, the portion of such payments which is so 
        designated.
    ``(C) For a family receiving project-based assistance, the rent the 
family is required to pay shall be determined in accordance with 
section 3(a)(1) and the amount of the housing assistance payment shall 
be determined in accordance with subsection (c)(3).
    ``(3) At the time a family initially receives tenant-based 
assistance with respect to any unit, the total amount a family may pay 
towards rent may not exceed 40 percent of the family's monthly adjusted 
income.
    ``(4) At the time a family initially receives assistance under the 
certificate program, a family shall qualify as--
            ``(A) a very low-income family,
            ``(B) a family previously assisted under this Act, or
            ``(C) a low-income family that meets eligibility criteria 
        specified by the Secretary.
    ``(5) Reviews of family income shall be made at least annually.
    ``(6)(A) In selecting families to be assisted, preference shall be 
given to families which, at the time they are seeking assistance, (i) 
occupy substandard housing (including families that are homeless or 
living in a shelter for homeless families), (ii) are involuntarily 
displaced, or (iii) are paying more than 50 percent of family income 
for rent;
    ``(B) A public housing agency may provide for circumstances in 
which families who do not qualify for any preference established in 
subparagraph (A) are provided assistance under this subsection before 
families who do qualify for such preference. However, not more than 10 
percent in the case of tenant-based assistance and not more than 30 
percent in the case of project-based assistance (or such higher 
percentage, in either case, determined by the Secretary to be necessary 
or appropriate) of the families who initially receive assistance in any 
1-year period may be families who do not qualify for such preference. 
The public housing agency shall, in implementing the preceding 
sentence, establish a system of preferences in writing and after public 
hearing to respond to local housing needs and priorities which may 
include--
            ``(i) assisting very low-income families who either reside 
        in transitional housing assisted under title IV of the Stewart 
        B. McKinney Homeless Assistance Act, or participate in a 
        program designed to provide public assistance recipients with 
        greater access to employment and educational opportunities;
            ``(ii) assisting families identified by local public 
        agencies involved in providing for the welfare of children as 
        having a lack of adequate housing that is a primary factor in 
        the imminent placement of a child in foster care, or in 
        preventing the discharge of a child from foster care and 
        reunification with his or her family;
            ``(iii) assisting youth, upon discharge from foster care, 
        in cases in which return to the family or extended family or 
        adoption is not available;
            ``(iv) assisting veterans who will use the assistance for a 
        dwelling unit designed for the handicapped, and, upon discharge 
        or eligibility for discharge from a hospital or nursing home, 
        have a physical disability which, because of the configuration 
        of their homes, prevents them from access to or use of their 
        homes, and
            ``(v) achieving other objectives of national housing policy 
        as affirmed by Congress.
    ``(C) Any individual or family evicted from housing assisted under 
the Act by reason of drug-related criminal activity (as defined in 
subsection (f)(5)) shall not be eligible for a preference under any 
provision of this subparagraph for 3 years unless the evicted tenant 
successfully completes a rehabilitation program approved by the 
Secretary (which shall include waiver for any member of a family of an 
individual prohibited from tenancy under this clause who the agency 
determines clearly did not participate in and had no knowledge of such 
criminal activity or when circumstances leading to eviction no longer 
exist).
    ``(7) The Secretary shall require, for any unit, that--
            ``(A) the public housing agency inspect the unit before any 
        assistance payment may be made to determine that the unit meets 
        housing quality standards for decent, safe, and sanitary 
        housing established by the Secretary for the purpose of this 
        section; and
            ``(B) the public housing agency make annual or more 
        frequent inspections during the contract term.
No assistance payment may be made for a dwelling unit which fails to 
meet such quality standards, unless any such failure is promptly 
corrected by the owner and the correction is verified by the public 
housing agency.
    ``(8) If a family vacates a dwelling unit, no assistance payment 
may be made for the unit after the month during which the unit was 
vacated.
    ``(9) A public housing agency may adjust its payment standard under 
this subsection where necessary to assure continued affordability for 
families receiving tenant-based assistance.
    ``(10) The Secretary may set aside up to 5 percent of the budget 
authority available under this subsection as an adjustment pool. The 
Secretary shall use amounts in the adjustment pool for adjustments 
pursuant to paragraph (9) to ensure continued affordability where the 
Secretary determines additional assistance for this purpose is 
necessary, based on documentation submitted by a public housing agency.
    ``(11)(A) The rent for units assisted under this subsection shall 
be reasonable in comparison with rents charged for comparable units in 
the private, unassisted market.
    ``(B) A public housing agency shall, at the request of a family 
receiving tenant-based assistance under this subsection, assist such 
family in negotiating a reasonable rent with an owner. A public housing 
agency shall review the rent for a unit under consideration by the 
family (and all rent increases for units under lease by the family) to 
determine whether the rent (or rent increase) requested by an owner is 
reasonable. If a public housing agency determines that the rent (or 
rent increase) for a unit is not reasonable, the agency shall 
disapprove a lease for such unit.
    ``(C) If units assisted under this subsection are exempt from local 
rent control while they are so assisted, the rent for such units shall 
be reasonable in comparison with other units in the market area that 
are exempt from local rent control.
    ``(12)(A) A public housing agency may make assistance payments on 
behalf of a family which utilizes a manufactured home as its principal 
place of residence. Such payments may be made for the rental of the 
real property on which there is located a manufactured home which is 
owned by any such family.
    ``(B)(i) For assistance pursuant to this paragraph, the rent for 
the space on which a manufactured home is located and with respect to 
which assistance payments are to be made includes maintenance and 
management charges and tenant-paid utilities.
    ``(ii) The public housing agency shall establish a payment standard 
for the purpose of determining the monthly assistance which may be paid 
for any family under this paragraph. The payment standard may not 
exceed an amount approved or established by the Secretary.
    ``(iii) The monthly assistance payment for assistance under this 
paragraph shall be determined in accordance with paragraph (2).
    ``(13)(A) Where the Secretary enters into an annual contributions 
contract with a public housing agency pursuant to which the agency will 
enter into a contract for assistance payments with respect to an 
existing structure under this subsection, the contract for assistance 
payments may not be attached to the structure unless the owner agrees 
to rehabilitate or newly construct the structure other than with 
assistance under this Act and otherwise complies with the requirements 
of this section. The public housing agency may approve such attachment 
for up to 15 percent of the funding available for tenant-based 
assistance administered by the agency under this section.
    ``(B) Notwithstanding any other provision of this section, a public 
housing agency and an applicable State agency may, on a priority basis, 
attach to structures not more than an additional 15 percent of the 
assistance only with respect to projects assisted under a State program 
that permits the owner of the projects to prepay a State-assisted or 
State-subsidized mortgage on the structure. However, the attachment of 
assistance under this subparagraph shall be for the purpose of--
            ``(i) providing incentives to owners to preserve such 
        projects for occupancy by low- and moderate-income families 
        (for the period that assistance under this sentence is 
        available), and
            ``(ii) to assist low-income families to afford any 
        increases in rent that may be required to induce the owner to 
        maintain occupancy in the project by low- and moderate-income 
        families.
    ``(C) Any assistance provided to low-income families under 
subparagraph (B) shall not be considered for purposes of the limitation 
under paragraph (6) regarding the percentage of families that may 
receive assistance under this section who do not qualify for 
preferences under that paragraph.
    ``(D) In the case of a contract for assistance payments that is 
attached to a structure under this paragraph, a public housing agency 
shall enter into a contract with an owner, contingent upon the future 
availability of appropriations for the purpose of renewing expiring 
contracts for assistance payments as provided in appropriations Acts, 
to extend the term of the underlying contract for assistance payments 
for such period or periods as the Secretary determines to be 
appropriate to achieve long-term affordability of the housing. The 
contract shall obligate the owner to have such extensions of the 
underlying contract for assistance payments accepted by the owner and 
the owner's successors in interest. To the extent assistance is used as 
provided in the second sentence of subparagraph (B), the contract for 
assistance may, at the option of the public housing agency, have an 
initial term not exceeding 15 years.
    ``(E) The Secretary shall annually survey public housing agencies 
to determine which public housing agencies have, in providing 
assistance in such year, reached the 15 percent limitations contained 
in subparagraphs (A) and (B), and shall report to the Congress on the 
results of the survey.
    ``(F) For project-based assistance under this paragraph, assistance 
contracts shall establish rents, and provide for rent adjustments, in 
accordance with subsection (c).
    ``(14) A family may lease a unit, other than a public housing unit, 
from the public housing agency with assistance under this subsection. 
The Secretary may establish appropriate program requirements for units 
owned by the public housing agency, including requirements for HUD 
approval of initial rents, rent adjustments, and administrative fees, 
taking into account that the agency administering the assistance is 
also the owner of the assisted unit.
    ``(15) Subsection (c) shall not apply to tenant-based assistance 
under this subsection.''.
    (b) Portability.--Section 8(r) of such Act is amended--
            (1) in each paragraphs (1) and (3), by striking 
        ``subsection (b) or'';
            (2) in paragraph (3), by inserting at the end the following 
        new sentence: ``The Secretary may reserve amounts available for 
        assistance under subsection (o) to compensate public housing 
        agencies which issue certificates to families that move into 
        the jurisdiction of the agency under portability procedures.''; 
        and
            (3) by adding the following new paragraph at the end:
            ``(5) A family may not receive a certificate from an agency 
        and move to another jurisdiction under the tenant-based 
        assistance program, if the family has moved out of its assisted 
        unit in violation of its lease.''.
    (c) Repeal of Requirement that Owners of Multifamily Housing 
Projects Lease to Certificate and Voucher Holders.--Section 8(t) of 
such Act is hereby repealed.
    (d) Homeownership Option.--Section 8(y) of such Act is amended--
            (1) in paragraph (1)(A), by inserting before the semicolon 
        ``or owns or is acquiring shares in a cooperative'';
            (2) in paragraph (1)(B)(i), by inserting before the 
        semicolon ``and demonstrates to the public housing agency that 
        it has sufficient resources for homeownership''; and
            (3) by amending paragraph (2)(A) to read as follows:
                    ``(A) Determination of amount of assistance.--
                            ``(i) Where the monthly homeownership 
                        expenses, as determined in accordance with 
                        requirements established by the Secretary, do 
                        not exceed the payment standard, the monthly 
                        assistance payment shall be the amount by which 
                        the homeownership expenses exceed the highest 
                        of the following amounts, rounded to the 
                        nearest dollar:
                                    ``(I) 30 percent of the family's 
                                monthly adjusted income.
                                    ``(II) 10 percent of the family's 
                                monthly income.
                                    ``(III) If the family is receiving 
                                payments for welfare assistance from a 
                                public agency and a part of such 
                                payments, adjusted in accordance with 
                                the family's actual housing costs, is 
                                specifically designated by such agency 
                                to meet the family's housing costs, the 
                                portion of such payments which is so 
                                designated.
                            ``(ii) Where the monthly homeownership 
                        expenses, as determined in accordance with 
                        requirements established by the Secretary, 
                        exceed the payment standard, the monthly 
                        assistance payment shall be the amount by which 
                        the applicable payment standard exceeds the 
                        highest of the following amounts, rounded to 
                        the nearest dollar:
                                    ``(I) 30 percent of the family's 
                                monthly adjusted income.
                                    ``(II) 10 percent of the family's 
                                monthly income.
                                    ``(III) If the family is receiving 
                                payments for welfare assistance from a 
                                public agency and a part of such 
                                payments, adjusted in accordance with 
                                the family's actual housing costs, is 
                                specifically designated by such agency 
                                to meet the family's housing costs, the 
                                portion of such payments which is so 
                                designated.''.
    (e) Technical and Conforming Amendments to the 1937 Act; Deletion 
of Obsolete Provisions.--The United States Housing Act of 1937 is 
amended as provided by this subsection.
            (1) The second and third sentences of section 8(a) are 
        hereby repealed.
            (2) Section 8(b) is amended by--
                    (A) striking ``Rental Certificates and Other 
                Existing Housing Programs.--``and inserting 
                ``Certificates and Other Existing Housing Programs.--
                (1)''; and
                    (B) striking the second sentence.
            (3) Section 8(c)(3) is amended by striking the subparagraph 
        designation ``(A)'' and striking all of subparagraph (B).
            (4) The first sentence of section 8(c)(4) is amended by 
        striking ``or by a family that qualifies to receive'' and all 
        that follows through ``1990''.
            (5) Sections 8(c) (5) and (7) are hereby repealed.
            (6) Section 8(c)(8) is amended by inserting after 
        ``section'' the following: ``(other than a contract under 
        section 8(o))''.
            (7) Section 8(c)(9) is amended by striking ``(but not less 
        than 90 days in the case of housing certificates or vouchers 
        under subsection (b) or (o))'' and inserting ``, other than a 
        contract under subsection (o)''.
            (8) Section 8(d)(1)(A) is amended--
                    (A) by inserting after the subparagraph designation 
                ``(A)'' the following: ``except for assistance under 
                subsection (o),'';
                    (B) in clause (i) by striking ``(I)'';
                    (C) in clause (i), by striking ``and (II) 90 
                percent of such families in the case of assistance not 
                attached to a structure''; and
                    (D) in clause (i), by striking ``except'' and all 
                that follows through the semicolon at the end.
            (9) Section 8(d)(2) is amended by striking the third 
        sentence of subparagraph (A) and all that follows through the 
        end of paragraph (2).
            (10) Section 8(f) is amended by--
                    (A) in paragraph (6), striking ``(d)(2)'' and 
                inserting ``(o)(13)''; and
                    (B) in paragraph (7), striking ``(b) or'' and 
                inserting before the period the following: ``and that 
                provides for the eligible family to select suitable 
                housing and to move to other suitable housing''.
            (11) Section 8(j) is hereby repealed.
            (12) Section 8(n) is hereby repealed.
            (13) The first sentence of section 8(q)(1) and sections 
        8(q)(2)(A)(i) and 8(q)(2) are each amended by striking 
        ``subsections (b) and (o)'' and inserting ``this section''.
            (14) Section 18(b)(3) is amended--
                    (A) in subparagraph (A)(v), by striking 
                ``(excluding vouchers under section 8(o))'' each place 
                it appears;
                    (B) in subparagraph (B), by striking ``8(d)(2)(A)'' 
                and inserting ``8(o)(13)'';
                    (C) in subparagraph (B)(ii), by striking 
                ``excluding vouchers under section 8(o))''; and
                    (D) in subparagraph (C)(i), by striking ``and 
                vouchers''.
            (15) Section 21(b)(3) is amended--
                    (A) in the first sentence, by striking 
                ``certificate under section 8(b)(1) or a housing 
                voucher under section 8(o)'' and inserting ``tenant-
                based assistance under section 8''; and
                    (B) by striking the second sentence.
            (16) Section 23(b)(3)(A) is amended by striking 
        ``Certificate and voucher assistance under section 8(b) and 
        (o)'' and inserting ``Tenant-based assistance under section 
        8''.
    (f) Other Technical and Conforming Amendments.--
            (1) Section 931 of the Cranston-Gonzalez National 
        Affordable Housing Act is amended by striking ``assistance 
        under the certificate and voucher programs under sections 8(b) 
        and (o)'' and inserting ``tenant-based assistance under section 
        8''.
            (2) Section 861(b)(1)(D) of the Cranston-Gonzalez National 
        Affordable Housing Act is amended by striking ``certificates or 
        vouchers'' and inserting ``assistance''.
            (3) Section 183(c)(2) of the Housing and Community 
        Development Act of 1987 is amended by striking ``section 8(o)'' 
        and inserting ``section 8''.
            (4) Section 223(a) of the Housing and Community Development 
        Act of 1987 is amended by striking ``sections 8(b) and 8(o)'' 
        and inserting ``section 8''.
            (5) The second sentence of section 533(a) of the Housing 
        Act of 1949 is amended by striking ``assistance payments as 
        provided by section 8(o)'' and inserting ``tenant-based 
        assistance as provided under section 8''.
    (g) Implementation.--The Secretary shall implement the amendments 
made by this section by regulation issued after notice and opportunity 
for public comment. The amendments made by this section shall take 
effect upon a date specified by the Secretary in the Federal Register. 
The Secretary may provide for the conversion of assistance under the 
certificate and voucher programs, as they existed before the effective 
date of the amendments made by this section, to the certificate program 
established under this section. However, the Secretary may continue to 
apply the provisions of the United States Housing Act of 1937 and other 
statutes amended by this section, as they existed immediately before 
such effective date, to assistance obligated by the Secretary before 
such effective date for the certificate or voucher program, where 
necessary for simplification of program administration, avoidance of 
hardship, or other good cause.

                 section 8 certificate and voucher fees

    Sec. 413. (a) Section 8(q)(1) of the United States Housing Act of 
1937 is amended to read as follows:
            ``(1)(A) The Secretary shall establish fees for the costs 
        of administering the tenant-based assistance programs under 
        this Act.
            ``(B)(i) For the initial year the Secretary establishes 
        fees under this section, as amended by the Housing Choice and 
        Community Investment Act of 1994, the fee for each month for 
        which a dwelling unit is covered by an assistance contract 
        shall be 7.65 percent of the base amount in the case of an 
        agency that, on an annual basis, is administering a program of 
        more than 1,000 units, and 7 percent of the base amount for 
        each additional unit above 1,000. The base amount shall be the 
        higher of (I) the fair market rental for fiscal year 1993 for a 
        2-bedroom existing rental dwelling unit in the market area of 
        the agency, and (II) such fair market rental for fiscal year 
        1994, but not more than 103.5 percent of the amount determined 
        under clause (I); except that the Secretary may require that 
        the base amount be not less than a minimum amount and not more 
        than a maximum amount.
            ``(ii) For subsequent fiscal years, the Secretary shall 
        publish in the Federal Register, for each geographic area, the 
        amount of the fee that would apply for agencies administering 
        the program, based on changes in wage data or other objectively 
        measurable data that reflect the costs of administering the 
        program, as determined by the Secretary.
            ``(C) The Secretary may increase the fee if necessary to 
        reflect the higher costs of administering small programs, the 
        family self-sufficiency program under section 23, and programs 
        operating over large geographic areas.''.
    (b) Section (8)(q)(2)(A)(i) is amended to read as follows:
                    ``(i) the costs of preliminary expenses, in the 
                amount of $500, for a public housing agency, but only 
                in connection with its initial increment of assistance 
                received in the first year it administers a tenant-
                based assistance program under this Act;''
    (c) The amendments made by this section shall take effect on a date 
specified by the Secretary in regulations implementing the amendments. 
Until that date, the fees applicable in fiscal year 1994 shall continue 
in effect.

                       Subtitle C--Miscellaneous

      section 811 rental assistance for persons with disabilities

    Sec. 421. (a) Rental Assistance for Existing Buildings.--Section 
811 of the Cranston-Gonzalez National Affordable Housing Act is 
amended--
            (1) in subsection (d)(2), by inserting after the dash the 
        following new sentence: ``The Secretary may enter into 
        contracts with private, nonprofit organizations to provide 
        project rental assistance for supportive housing for persons 
        with disabilities, whether or not that housing is developed 
        with capital advances under this section.'';
            (2) in subsection (e)(1), by inserting immediately after 
        ``assisted'' the following: ``with capital advances'';
            (3) by amending the first two sentences of subsection 
        (e)(2) to read as follows: ``The initial term of a contract 
        entered into under subsection (d)(2) shall be 240 months for 
        housing developed with a capital advance, and shall be not more 
        than 60 months for housing not developed with a capital 
        advance. The Secretary shall, to the extent approved in 
        appropriations Acts, extend any expiring contracts for a term 
        of not less than 60 months.'';
            (4) in subsection (g)(1), by inserting after ``develop'' 
        the following ``(if applicable)'';
            (5) in each of subsections (g)(3) and (5), by inserting 
        immediately before ``proposed'' the following ``design or'';
            (6) in subsection (j)(3)--
                    (A) by striking ``An'' and inserting in lieu 
                thereof the following: ``(A) where the housing is to be 
                assisted with capital advances under this section, 
                an''; and
                    (B) by adding the following new subparagraph at the 
                end thereof:
                    ``(B) Where the housing is to be assisted only with 
                project rental assistance, the applicant shall have 
                ownership or control of a suitable site at the time of 
                application. The Secretary may approve a change in site 
                at any time from the date the application is submitted 
                to the expiration date of the rental assistance 
                contract.'';
            (7) in subsection (j)(4), by striking ``The'' and inserting 
        in lieu thereof the following ``Where the housing is assisted 
        with capital advances under this section, the'';
            (8) in the second sentence of subsection (k)(1), by 
        striking ``the development of'';
            (9) in subsection (k)(5), by inserting immediately after 
        ``disabilities'' the following: ``, or that receives rental 
        assistance under this section to operate or project for 
        supportive housing for persons with disabilities''; and
            (10) in subsection (m)(3), by striking out ``(1)'' and 
        inserting in lieu thereof ``(2)''.
    (b) Repeal of Tenant-based Assistance.--Section 811 of such Act is 
amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) General Authority.--The Secretary is authorized to provide 
assistance to private, nonprofit organizations to expand the supply of 
supportive housing for persons with disabilities. Such assistance shall 
be provided as--
            ``(1) capital advances in accordance with subsection 
        (d)(1), together with contracts for project rental assistance 
        in accordance with subsection (d)(2), or
            ``(2) contracts for project rental assistance in accordance 
        with subsection (d)(2).
Such assistance may be used to finance the acquisition, acquisition and 
moderate rehabilitation, construction, reconstructing, or moderate of 
substantial rehabilitation of housing, including the acquisition from 
the Resolution Trust Corporation, to be used as supportive housing for 
persons with disabilities and may include real property acquisition, 
site improvement, conversion, demolition, relocation, and other 
expenses that the Secretary determines are necessary to expand the 
supply of supportive housing for persons with disabilities.'';
            (2) in each of subsections (d)(1) and (3), (e) (1), and 
        (g), and in the first and second sentences of subsection (f), 
        by striking ``subsection (b)(2)''and inserting the following: 
        ``this section'' and
            (3) by striking subsection (d)(4).
    (c) Technical Changes.--(1) Section 811(k)(6)(A) of such Act is 
amended to read as follows:
                  ``(A) that has received tax-exempt status under 
                section 501(c) (3) or (4) of the Internal Revenue Code 
                of 1986;''.
    (2) Section 8(i) of the United States Housing Act of 1937 is hereby 
repealed.

  funding for supportive housing for the elderly and for persons with 
                              disabilities

    Sec. 422. Section 601 of the Housing and Community Development Act 
of 1992 (Public Law 102-550; 106 Stat. 3802) is amended by striking 
subsection (a) and inserting the following new subsection:
    ``(a) Aggregate Funding.--There are authorized to be appropriated 
for the purpose of providing assistance in accordance with section 202 
of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez 
National Affordable Housing Act $537,000,000 for fiscal year 1995 and 
$387,000,000 for fiscal year 1996. Of the foregoing amounts, for fiscal 
year 1995, $387,000,000 shall be to carry out such section 811, and 
$150,000,000 shall be to carry out such section 202. The total amount 
for fiscal year 1996 shall be to carry out such section 811.''.

                               youthbuild

    Sec. 423. (a) Section 454(b) of subtitle D of Title IV of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in paragraph (2), by striking ``Acquisition'' and all 
        that follows through ``facilities'' and inserting in lieu 
        thereof the following: ``Acquisition, rehabilitation, or 
        acquisition and rehabilitation of vacant housing and related 
        facilities, or construction of new housing and related 
        facilities,'';
            (2) by striking paragraph (6); and
            (3) by designating paragraphs (7) and (8) as paragraphs (6) 
        and (7), respectively.
    (b) Section 454(g) of such Act is hereby repealed.
    (c) Section 455(a) of such Act is amended--
            (1) in the first sentence, by inserting after ``receiving 
        assistance under this subtitle'' the following: ``for costs 
        such as construction, rehabilitation, and acquisition''; and
            (2) in paragraph (1)(A), by deleting ``less than 60'' and 
        inserting in lieu thereof ``that do not exceed 50''.
    (d) Section 458(d) of such Act is amended by striking ``(b) and 
(c)'' and inserting in lieu thereof ``(a), (b), and (c)''.

                  hope authorization of appropriations

    Sec. 424. Sections 402 (a) and (b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12870) are amended to read 
as follows:
    ``(a) Homeownership Programs.--There are authorized to be 
appropriated for activities authorized under title III of the United 
States Housing Act of 1937, and subtitles B and C of title IV of the 
Cranston-Gonzalez National Affordable Housing Act, including amounts 
for technical assistance, $100,000,000 for fiscal year 1995 and 
$100,000,000 for fiscal year 1996.
    ``(b) Youthbuild Program.--There are authorized to be appropriated 
for activities under subtitle D of title IV of the Cranston-Gonzalez 
National Affordable Housing Act $50,000,000 for fiscal year 1995 and 
$50,000,000 for fiscal year 1996. Any amounts appropriated pursuant to 
this subsection shall remain available until expended.''.

 authorization of appropriations for housing opportunities for persons 
                               with aids

    Sec. 425. Section 863 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12912), is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $156,000,000 for fiscal year 1995 and $156,000,000 for fiscal 
year 1996.''.

                  TITLE V--PRESERVATION AND PRODUCTION

SEC. 501. MISCELLANEOUS AMENDMENTS TO LIHPRHA.

    (a) Establish a Realistic Federal Cost Limit.--(1) Section 215(a) 
of the Low-Income Housing Preservation and Resident Homeownership Act 
of 1990 is amended--
            (A) in paragraph (1), by striking ``120'' and inserting 
        ``100'';
            (B) by striking paragraph (2); and
            (C) by redesignating paragraph (3) as paragraph (2) and 
        amending such paragraph by striking ``and the amount determined 
        under paragraph (2)''.
    (2) Section 215(b)(2)(C) is amended to read as follows:
            ``(C) file a second notice of intent under section 216(d) 
        to terminate the low-income affordability restrictions through 
        payment of the mortgage or voluntary termination of the 
        insurance contract, subject to compliance with the provisions 
        of section 223.''.
    (3)(A) Section 221 is hereby repealed.
    (B)(i) Section 213(b)(2), section 214(b)(2), the second sentence of 
section 217(a)(1), sections 224(a)(1) (B) and (C), and section 
224(a)(2) of such Act are each amended by striking ``or 221''.
    (ii) The third sentence of section 214(b) of such Act is amended by 
striking ``219, 220, or 221'' and inserting ``219 or 220''.
    (iii) The third sentence of section 216(d)(1) of such Act is 
amended by striking ``sections 221 and 223'' and inserting ``section 
223''.
    (iv) The second sentence of section 217(a)(1) of such Act is 
amended by striking ``or upon making of any bona fide offer under 
section 221''.
    (v) The last sentence of section 224(a) of such Act is amended by 
striking ``sections 220 and 221'' and inserting ``section 220''.
    (vi) Section 229(8)(B) of such Act is amended by striking ``and 
221''.
    (b) Cap Appraisals Under LIHPRHA at Fair Market Value for 
Residential Rental Use.--Section 213(b)(2) of such Act is amended by 
inserting before the period the following: ``as residential rental 
housing''.
    (c) Repeal of Homeownership Assistance.--(1) Section 220(d)(1) of 
such Act is amended to read as follows:
            ``(1) Approval.--The Secretary may not approve a plan for 
        any qualified purchaser unless the Secretary finds that the 
        criteria for approval under section 222 have been satisfied.''.
    (2) The matter preceding subparagraph (A) in section 220(d)(2) of 
such Act is amended by striking ``(including all priority purchasers 
other than resident councils acquiring under the homeownership program 
authorized by section 226)''.
    (3) Section 220(d)(2)(G) of such Act is amended to read as follows:
                    ``(G) in the case of a resident council organized 
                to acquire the housing as a limited equity cooperative, 
                cover the costs of training for the resident council 
                and of ownership counseling and training.''.
    (4) Section 222(a) of such Act is amended by striking out ``(other 
than a resident council)''.
    (5) Section 222(a)(2)(A) of such Act is amended by inserting 
``rental or limited equity cooperative'' immediately after ``the 
housing will be retained as''.
    (6) Section 226 of such Act is hereby repealed.
    (7) Section 231(a) of such Act is amended by--
            (A) striking out ``(A)'' and all that follows through 
        ``(B)''; and
            (B) inserting after ``any nonprofit organization'' the 
        following: ``(including a resident council)''.
    (d) National Housing Act Conforming Amendment.--Section 
241(f)(3)(A) of the National Housing Act is amended by striking out 
``or 221''.
    (e) Transition Provision.--The amendments made by this section 
shall only apply to eligible owners that file a plan of action under 
the Low-Income Housing Preservation and Resident Homeownership Act of 
1990 on or after the date of enactment of this Act.

    low-income housing preservation authorization of appropriations

    Sec. 502. Section 234(a) of the Housing and Community Development 
Act of 1987 (12 U.S.C. 4124) is amended to read as follows:
    ``(a) In General.--There are authorized to be appropriated for 
assistance and incentives authorized under this subtitle $226,000,000 
for fiscal year 1996.''.

   fha fund support of section 8 assistance for property disposition

    Sec. 503. (a) Section 203 of the Housing and Community Development 
Amendments of 1978 is amended by adding the following new subsection at 
the end thereof:
    ``(m) Spending Authority for Section 8 Assistance.--In addition to 
amounts otherwise made available for carrying out subsection (e) and 
(f) of this section, the Secretary shall use not to exceed a total of 
$3,945,000,000 for fiscal years 1995 through 1999 for assistance under 
section 8 of the United States Housing Act of 1937, as authorized by 
subsections (e) and (f). These funds are hereby made available from 
amounts in the General Insurance Fund or the Special Risk Insurance 
Fund, as appropriate.''.
    (b) Section 207(l) of the National Housing Act is amended by adding 
in the first sentence after ``or sell for cash or credit or lease in 
his discretion,'' the following: ``with or without provision for rental 
assistance that may be either project-based on tenant-based,''.

                      home program loan guarantees

    Sec. 504. Home Program Loan Guarantees.--Title II of the Cranston-
Gonzalez National Affordable Housing Act (the Home Investment 
Partnerships Act) is amended by adding the following new section at the 
end of subtitle A:
    ``Sec. 227. Loan Guarantees.--(a) The Secretary is authorized, upon 
such terms and conditions as the Secretary may prescribe, to guarantee 
and make commitments to guarantee, only to such extent or in such 
amounts as provided in appropriations Acts, the notes or other 
obligations issued by eligible participating jurisdictions or by public 
agencies designated by and acting on behalf of eligible participating 
jurisdictions for purposes of financing (including credit enhancements 
and debt service reserves) the acquisition, new construction, 
reconstruction, or moderate or substantial rehabilitation of affordable 
housing, including real property acquisition, site improvement, 
conversion, demolition, and other expenses, including financing costs, 
relocation expenses of any displaced persons, families, businesses, or 
organizations. All housing funded under this section shall meet the 
requirements of this title.
    ``(b) Notes or other obligations guaranteed under this section 
shall be in such form and denominations, have such maturities, and be 
subject to such conditions as may be prescribed by regulations issued 
by the Secretary. The Secretary may not deny a guarantee under this 
section on the basis of the proposed repayment period for the note or 
other obligation, unless the period is more than 20 years or the 
Secretary determines that the period otherwise causes the guarantee to 
constitute an unacceptable financial risk. To the extent provided in 
appropriation Acts, the Secretary may enter into commitments to 
guarantee notes or other obligations under this section with an 
aggregate principal amount of $1,000,000,000 for fiscal year 1995 and 
$1,000,000,000 for fiscal year 1996.
    ``(c) No guarantee or commitment to guarantee shall be made with 
respect to any note or other obligation if the total outstanding notes 
or obligations guaranteed under this section on behalf of a 
participating jurisdiction (excluding any amount defeased under a 
contract entered into under subsection (e)(1)) would thereby exceed an 
amount equal to 5 times the amount of the participating jurisdiction's 
latest HOME allocation.
    ``(d) Notwithstanding any other provision of this title, funds 
allocated to the participating jurisdiction under this title (including 
program income derived therefrom) are authorized for use by the 
participating jurisdiction or by the Secretary, in the payment of 
principal and interest due on the notes or other obligations guaranteed 
pursuant to this section and the payment of such servicing, 
underwriting, or other issuance or collection charges as may be 
specified in regulations issued by the Secretary.
    ``(e) To assure the full repayment of notes or other obligations 
guaranteed hereunder as well as the issuance or collection charges 
specified by the Secretary under paragraph (d), and as a prior 
condition for receiving such guarantees, the Secretary shall require 
the participating jurisdiction (and its designated public agency 
issuer, if any) to--
            ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of such notes or other obligations and 
        the other specified charges;
            ``(2) pledge as security for such repayment any allocation 
        for which the participating jurisdiction may become eligible 
        under this title; and
            ``(3) furnish, at the discretion of the Secretary, such 
        other security as may be deemed appropriate by the Secretary in 
        making such guarantees, which may include increments in local 
        tax receipts generated by the housing assisted under this 
        section or disposition proceeds from the sale of land or 
        housing.
    ``(f) The Secretary is authorized, notwithstanding any other 
provision of this title or any other Federal, State or local law, to 
apply allocations pledged pursuant to paragraph (e) of this section to 
any repayments due the United States as a result of such guarantees.
    ``(g) The full faith and credit of the United States is pledged to 
the payment of all guarantees made under this section. Any such 
guarantee made by the Secretary shall be conclusive evidence of the 
eligibility of the notes or other obligations for such guarantee with 
respect to principal and interest, and the validity of any such 
guarantee so made shall be incontestable in the hands of a holder of 
the guaranteed obligations.
    ``(h) Obligations guaranteed under this section shall be subject to 
Federal taxation as provided subsection (j).
    ``(i) With respect to any obligation guaranteed pursuant to this 
section, the interest paid on such obligation shall be included in 
gross income for the purpose of chapter 1 of the Internal Revenue Code 
of 1954.
    ``(j) The Secretary shall monitor the use of guarantees under this 
section by eligible participating jurisdictions. If the Secretary finds 
that 50 percent of the aggregate guarantee authority has been 
committed, the Secretary may--
            ``(1) impose limitations on the amount of guarantees any 
        one participating jurisdiction may receive in any fiscal year 
        of $35,000,000; or
            ``(2) request the enactment of legislation increasing the 
        aggregate limitation on guarantees under this section.
    ``(k) No fee or other charge may be imposed by the Secretary or any 
other Federal agency on or with respect to a guarantee made by the 
Secretary under this section.
    ``(l)(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 paragraph (g), 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, the Secretary 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.
    ``(m) There are authorized to be appropriated such sums as may be 
necessary for each of fiscal years 1995 and 1996 for the cost to the 
Government, as defined in section 502 of the Congressional Budget Act, 
of guaranteed loans under this section.''.

                  home authorization of appropriations

    Sec. 505. Section 205 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 1274) is amended to read as follows:
    ``Sec. 205. Authorization.--There are authorized to be appropriated 
to carry out this title $1,000,000,000 for fiscal year 1995, and 
$1,000,000,000 for fiscal year 1996.''.

         extension of the section 221(g)(4) auction provisions

    Sec. 506. The first sentence of section 221(g)(4)(C)(viii) of the 
National Housing Act is amended by striking ``September 30, 1995'' and 
inserting ``December 31, 2005''.

      extension of the multifamily mortgage credit demonstrations

    Sec. 507. Section 542 of the Housing and Community Development Act 
of 1992 is amended--
            (1) in subsection (b)(5), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (2) in subsection (c)(4), by striking ``1993, 1994, and 
        1995'' and inserting ``1995, 1996, and 1997''.

  TITLE VI--EXPANSION OF FAIR HOUSING METROPOLITAN AREAWIDE STRATEGY 
                             DEMONSTRATION

    Sec. 601. (a) The Secretary of Housing and Urban Development shall 
carry out, through consortia of units of general local government, a 
demonstration that makes assisted housing available in three 
metropolitan areas on a metropolitan, areawide basis. The demonstration 
shall be designed to determine how best to--
            (1) affirmatively further fair housing and address the 
        problem of racial segregation in metropolitan areas;
            (2) achieve the goal of overcoming racial spatial 
        separation and segregation, including testing the effect of 
        filling vacancies in assisted housing by use of a consolidated 
        waiting list;
            (3) enlist cooperation by units of general local 
        government, public housing agencies, and private owners of 
        assisted housing in achieving such goals;
            (4) make public housing a path to social and economic 
        mobility;
            (5) eliminate housing discrimination; and
            (6) accomplish related objectives, as determined by the 
        Secretary.
    (b) The Secretary shall select the consortia on a competitive basis 
and make a grant to each consortia selected to carry out the 
demonstration. An application shall demonstrate that a sufficient 
number of units of general local government, public housing agencies, 
and private owners of assisted housing are committed to participate in 
the demonstration to make the demonstration feasible, including 
commitments to comply with alternative program requirements specified 
by the Secretary. The demonstration shall have a three-year term with 
respect to each site.
    (c) The Secretary may waive, or specify alternative requirements 
for, any provision of any statute or regulation that the Secretary 
administers upon finding that the waiver or alternative requirement (1) 
is necessary to facilitate the demonstration, and (2) would not be 
inconsistent with the overall purpose of the statute or regulation 
affected. In no event may the Secretary waive, or specify alternative 
requirements for, statutory requirements related to nondiscrimination, 
fair housing, labor standards, or the environment, except that the 
Secretary may waive affirmative marketing requirements for participants 
in the demonstration.
    (d) There are authorized to be appropriated for the costs related 
to regional planning, housing counseling, development of a model 
consolidated waiting list, and administration under the demonstration 
established by this section, $15,000,000 for each of fiscal years 1995, 
1996, and 1997. Of the amounts appropriated for annual contributions 
for assisted housing under the United States Housing Act of 1937, the 
Secretary shall earmark $9,000,000 for each of fiscal years 1995, 1996, 
and 1997 for modernization of public housing under section 14 of that 
Act by public housing agencies participating in the demonstration that 
are located in the central city of the metropolitan area. Of the 
amounts appropriated for annual contributions for assisted housing 
under the United States Housing Act of 1937 and earmarked for tenant-
based assistance under section 8 of that Act, the Secretary may set 
aside up to $100,000,000 for use by public housing agencies in support 
of the demonstration.

  expand use of amounts in section 213(d)(4) headquarters reserve in 
         connection with settlement of civil rights litigation

    Sec. 602. (a) Section 213(d)(4)(A) of the Housing and Community 
Development Act of 1974 is amended by--
            (1) striking ``and'' at the end of clause (iii);
            (2) redesignating clause (iv) as clause (v); and
            (3) inserting the following new clause after clause (iii):
                            ``(iv) fair housing activities and cash 
                        payments, in connection with the settlement of 
                        civil rights litigation (excluding litigation 
                        brought by an employee or former employee of 
                        the Secretary); and''.
    (b) Section 5 of the United States Housing Act of 1937 is amended 
by adding at the end the following new subsection:
    ``(m) The Secretary may use up to five percent of the aggregate 
amount appropriated under this Act for public housing development and 
section 8 assistance for the activities eligible for funding from 
amounts retained by the Secretary in accordance with section 213(d) of 
the Housing and Community Development Act of 1974.''.

 make cdbg expenditures on fair housing activities eligible activities 
                           in their own right

    Sec. 603.  (a) Section 105(a) of the Housing and Community 
Development Act of 1974 is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(26) activities that affirmatively further fair 
        housing.''.
    (b) Section 105(c) of such Act is amended by adding the following 
new paragraph at the end:
            ``(5) Any activity carried out under subsection (a)(26) 
        shall be presumed to benefit persons of low and moderate 
        income.''.

    fair housing initiatives program authorization of appropriations

    Sec. 604. Section 561(g) of the Housing and Community Development 
Act of 1987 (42 U.S.C. 3616 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to remain available until expended, to carry out the 
provisions of this section $26,000,000 for fiscal year 1995 and 
$26,000,000 for fiscal year 1996, of which--
            ``(1) not less than $9,000,000 for fiscal year 1995 and not 
        less than $9,000,000 for fiscal year 1996 shall be for private 
        enforcement initiatives authorized under subsection (b), 
        divided equally between activities specified under subsection 
        (b)(1) and those specified under subsection (b)(2);
            ``(2) not less than $7,000,000 for fiscal year 1995 and not 
        less than $7,000,000 for fiscal year 1996 shall be for fair 
        housing enforcement organizations authorized under subsection 
        (c);
            ``(3) not less than $7,000,000 for fiscal year 1995 and not 
        less than $7,000,000 for fiscal year 1996 shall be for 
        education and outreach programs authorized under subsection 
        (d); and
            ``(4) not less than $3,000,000 for fiscal year 1995 and not 
        less than $3,000,000 for fiscal year 1996 shall be for 
        administrative enforcement.''.

 civil money penalties for violations of the home mortgage disclosure 
                     act by nonsupervised mortgages

    Sec. 605. Section 305 of the Home Mortgage Disclosure Act of 1975 
is amended as follows:
            (a) Subsection (b)(4) is repealed.
            (b) Subsection (c) is redesignated as section 305(d).
            (c) A new subsection (c) is added, to read:
    ``(c) Powers of the Secretary of Housing and Urban Development.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development (`the Secretary') shall enforce compliance with the 
        requirements imposed under this title with regard to lending 
        institutions not named in subsection (b).
            ``(2) Civil money penalties.--Pursuant to paragraph (1) of 
        this subsection, the Secretary may impose a civil money penalty 
        for failure to comply with the requirements of this title.
            ``(3) Amount of penalty.--The amount of the penalty, as 
        determined by the Secretary, may not exceed $5,000 for each 
        violation, except that the maximum penalty for all violations 
        by any particular lending institution during any 1-year period 
        shall not exceed $1,000,000.
            ``(4) Violations for which a penalty may be imposed.--A 
        civil money penalty may be imposed for the late submission of a 
        report, failure to submit a report, submission of an illegible 
        report, submission of an erroneous report, and failure to 
        submit a corrected report for a report that was illegible or 
        erroneous.
            ``(5) Agency procedures.--
                    ``(A) Establishment.--The Secretary shall establish 
                standards and procedures governing the imposition of 
                civil money penalties under this section. These 
                standards and procedures shall provide for the 
                Secretary to make the determination to impose the 
                penalty or to use an administrative entity (such as the 
                Mortgagee Review Board, established pursuant to section 
                202(c) of the National Housing Act) to make the 
                determination; shall provide for the imposition of a 
                penalty only after the lending institution has been 
                given an opportunity for a hearing on the record; and 
                may provide for review by the Secretary of a 
                determination or order, or interlocutory ruling, 
                arising from a hearing.
                    ``(B) Final orders.--If no hearing is requested 
                within 15 days of receipt of the notice of opportunity 
                for hearing, the imposition of the penalty shall 
                constitute a final and unappealable determination. If 
                the Secretary reviews the determination or order, the 
                Secretary may affirm, modify, or reverse that 
                determination or order. If the Secretary does not 
                review the determination or order within 90 days of the 
                issuance of the determination or order, the 
                determination or order shall be final.
                    ``(C) Factors in determining amount of penalty.--In 
                determining the amount of a penalty under this 
                subsection, consideration shall be given to such 
                factors as the gravity of the offense, any history of 
                prior offenses, ability to pay the penalty, deterrence 
                of future violations, and such other factors as the 
                Secretary may determine to be appropriate.
                    ``(D) Reviewability of imposition of penalty.--The 
                Secretary's determination or order imposing a penalty 
                under this subsection shall not be subject to review, 
                except as provided in this subsection.
            ``(6) Judicial review of agency determination.--
                    ``(A) In general.--After exhausting all 
                administrative remedies established by the Secretary 
                under this subsection, a lending institution against 
                whom the Secretary has imposed a civil money penalty 
                under this subsection may obtain a review of the 
                penalty as may be addressed in the notice of 
                determination to impose a penalty in the appropriate 
                court of appeals of the United States, by filing in 
                such court, within 20 days after the entry of such 
                order or determination, a written petition praying that 
                the Secretary's determination or order be modified or 
                set aside in whole or in part.
                    ``(B) Objections not raised in hearing.--The court 
                shall not consider any objection that was not raised in 
                the hearing conducted pursuant to this subsection 
                unless a demonstration is made of extraordinary 
                circumstances causing the failure to raise the 
                objection. If any party demonstrates to the 
                satisfaction of the court that additional evidence not 
                presented at the hearing is material and that there 
                were reasonable grounds for the failure to present such 
                evidence at the hearing, the court shall remand the 
                matter to the Secretary for consideration of the 
                additional evidence.
                    ``(C) Scope of review.--The decisions, findings, 
                and determinations of the Secretary shall be reviewed 
                pursuant to section 706 of title 5, United States Code.
                    ``(D) Order to pay penalty.--Notwithstanding any 
                other provision of law, in any such review, the court 
                shall have the power to order payment of the penalty 
                imposed by the Secretary.
            ``(7) Action to collect penalty.--If a lending institution 
        fails to comply with the Secretary's determination or order 
        imposing a civil money penalty under this subsection, after the 
        determination or order is no longer subject to review as 
        provided by this subsection, the Secretary may bring an action 
        in an appropriate United States district court to obtain a 
        monetary judgment against the lending institution. In such an 
        action, the validity and appropriateness of the Secretary's 
        determination or order imposing the penalty shall not be 
        subject to review. The monetary judgment may, in the court's 
        discretion, include the attorneys fees and other expenses 
        incurred by the United States in connection with the action.
            ``(8) Settlement by secretary.--The Secretary may 
        compromise, modify, or remit any civil money penalty which may 
        be imposed under this subsection.
            ``(9) Regulations.--The Secretary shall issue such 
        regulations as the Secretary deems appropriate to implement 
        this subsection.
            ``(10) Deposit of penalties in united states treasury.--All 
        civil money penalties collected under this subsection shall be 
        deposited in the Miscellaneous Receipts Account of the 
        Treasury.''.

            TITLE VII--COMMUNITY DEVELOPMENT AND EMPOWERMENT

                   Subtitle A--Neighborhood Leveraged

                investments for tomorrow (lift) program

                             authorization

    Sec. 701. (a) Program Authorization.--The Secretary is authorized 
to make grants in accordance with the provisions of this subtitle to 
States, units of general local government, Indian tribes, and 
community-based non-profit organizations for the purpose of stimulating 
public and private investment in the community-building enterprises 
that provide essential services to disadvantaged communities, spur new 
investment and development in nearby areas, and create jobs for 
neighborhood residents.
    (b) Funding Authorization.--
            (1) In general.--There are authorized to be appropriated 
        for purposes of this subtitle $200,000,000 for fiscal year 1995 
        and such sums as may be necessary for fiscal year 1996. Any 
        amount appropriated shall remain available until expended.
            (2) Allocation of funds.--(A) Of the amounts appropriated 
        under paragraph (1) for any fiscal year, the Secretary shall 
        set aside such amounts as the Secretary deems appropriate to 
        carry out the training, information, and technical assistance 
        activities referred to in section 707.
            (B) Of the amounts remaining each fiscal year after amounts 
        are set aside under subparagraph (A)--
                    (i) 75 percent shall be available for neighborhood 
                revitalization grants under section 704; and
                    (ii) 25 percent shall be available for project-
                based grants under section 705.

                         eligible neighborhoods

    Sec. 702. (a) Indicia of Need.--Grants under this subtitle may only 
be used in neighborhoods that meet such criteria of need as the 
Secretary shall prescribe. These criteria may include--
            (1) concentrations of persons of low and moderate income in 
        census tracts in the neighborhood;
            (2) poverty rates in the neighborhood;
            (3) rates of unemployment in the neighborhood; and
            (4) such other indicia of economic need as the Secretary 
        deems appropriate.
    (b) Limitation.--Eligible neighborhoods under this section shall be 
located outside central business districts, as determined by the 
Secretary, except that the Secretary may waive this requirement, if the 
Secretary determines that a successful neighborhood revitalization 
strategy is contingent upon the simultaneous revitalization of such a 
district.

                          eligible activities

    Sec. 703. Grants under this subtitle may be used to carry out 
activities to further the comprehensive physical and economic 
revitalization of eligible neighborhoods, including (but not limited 
to) activities such as the construction, rehabilitation, or financing 
of--
            (1) retail and service facilities;
            (2) mixed-use projects;
            (3) projects that link economic development and housing;
            (4) community centers; and
            (5) community-based business expansions.
Grantees may provide assistance under this subtitle through grants, 
loans, credit enhancements, or other appropriate mechanisms.

            grants for neighborhood revitalization projects

    Sec. 704. (a) In General.--Of amounts allocated under section 
701(b)(2)(B)(i), the Secretary shall make grants for the purpose of 
assisting the development and implementation of neighborhood 
revitalization projects in eligible neighborhoods, which may include 
projects in which grantees participate as developers or joint-venture 
partners with for-profit entities.
    (b) Selection Process.--
            (1) In general.--The Secretary shall select grantees under 
        this section on a non-competitive basis, through negotiation 
        with the grantee.
            (2) Selection criteria.--In selecting projects, the 
        Secretary shall consider the extent to which the assisted 
        activities will--
                    (A) provide essential goods and services to 
                residents of the neighborhood;
                    (B) generate jobs for residents of the 
                neighborhood, especially for residents who are 
                chronically unemployed or receive welfare;
                    (C) be an essential element of, and catalyst for, 
                the comprehensive physical and economic revitalization 
                of the neighborhood;
                    (D) build the economic base of the neighborhood 
                through such measures as business expansion, and job 
                opportunities and meaningful reinvestment of a share of 
                the profits of a successful project in the 
                neighborhood, including economically empowering 
                neighborhood residents to carry out additional 
                neighborhood development projects;
                    (E) leverage public and private investment (other 
                than assistance under this subtitle) in the physical 
                and economic revitalization of the neighborhood and in 
                the activities proposed to be assisted; and
                    (F) meet such other factors as the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
    (c) Authority of Secretary.--The Secretary shall prescribe such 
requirements for the making of grants under this section as the 
Secretary deems appropriate.

              competitive grants for project-based grants

    Sec. 705. (a) In General.--Of amounts allocated under section 
701(b)(2)(B)(ii), the Secretary shall make grants for the purpose of 
facilitating private and public sector investment in economic 
revitalization projects in eligible neighborhoods.
    (b) Applications.--
            (1) Form and procedure.--An application for a grant under 
        this section shall be submitted in such form and in accordance 
        with such procedures as the Secretary shall prescribe.
            (2) Minimum requirements.--An application shall at a 
        minimum--
                    (A) request a grant under this section, specifying 
                the amount of the grant requested and its proposed 
                uses;
                    (B) demonstrate that the neighborhood in which the 
                proposed activities are to be carried out is an 
                eligible neighborhood under section 702;
                    (C) describe the applicant's comprehensive strategy 
                for the physical and economic revitalization of the 
                neighborhood;
                    (D) demonstrate that the proposed activities are an 
                integral part of this strategy;
                    (E) demonstrate that the proposed project is 
                consistent with, and an integral part of, the relevant 
                housing and community development plans of the State or 
                unit of general local government; and
                    (F) contain a certification that the applicant will 
                comply with the requirements of 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, and will affirmatively 
                further fair housing.
    (c) Selection Criteria.--The Secretary shall establish selection 
criteria for awarding grants under this section. These criteria shall 
consider the extent to which the assisted activities--
            (1) generate jobs for residents of the neighborhood, 
        especially for residents who are chronically unemployed or 
        receive welfare;
            (2) build the economic base of the neighborhood through 
        such measures as business expansion, and job opportunities and 
        meaningful reinvestment of a share of the profits of a 
        successful project in the neighborhood, including economically 
        empowering neighborhood residents to carry out additional 
        neighborhood development projects;
            (3) are sponsored by for-profit or non-profit development 
        partnerships with a proven record of success;
            (4) build upon and expand the capacity of local 
        institutions to carry out neighborhood revitalization;
            (5) are an integral part of the housing and community 
        development plans of the appropriate governmental jurisdiction; 
        and
            (6) meet such other factors as the Secretary deems 
        appropriate to carry out the objectives of this section.
    (d) Grant Limitations.--
            (1) Need for grant.--A grant may be made under this section 
        only if the Secretary determines that the grantee has made 
        efforts to complete the project without a grant under this 
        section, but cannot do so consistent with the timely execution 
        of the project without the grant.
            (2) Number of applications.--The Secretary shall establish 
        limits on the number of applications submitted by individual 
        grantees within any unit of general local government, State, or 
        Indian tribe for each announcement of funding availability that 
        is published in the Federal Register.
            (3) Grant cap.--The Secretary shall establish aggregate 
        limits on the grant amounts that may be made available to 
        individual grantees within a unit of general local government, 
        State, or Indian tribe for each announcement of funding 
        availability that is published in the Federal Register.
    (e) Authority of Secretary.--The Secretary shall prescribe such 
requirements for the making of grants under this section as the 
Secretary deems appropriate.

                      records, reports, and audits

    Sec. 706. (a) Keeping of Records.--Each grantee shall keep such 
records as may be reasonably necessary to disclose the amounts and the 
disposition of grant amounts received under this subtitle and to ensure 
compliance with the requirements of this subtitle.
    (b) Grantee Reports.--Each grantee shall submit to the Secretary a 
report, or series of reports, in a form and at a time specified by the 
Secretary. Each report shall--
            (1) describe the use of funds made available under this 
        subtitle; and
            (2) describe and analyze the effect of assisted activities 
        in addressing the objectives of this subtitle.
    (c) Access to Documents by the Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of the grantee that are pertinent to 
assistance received in connection with, and the requirements of, this 
subtitle.
    (d) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of the grantee that are pertinent to assistance received under, 
and the requirements of, this subtitle.

                  training and information activities

    Sec. 707. From amounts set aside under section 701(b)(1), the 
Secretary shall carry out, directly or through contracts, training, 
information, and technical assistance activities with respect to the 
programs authorized by this subtitle.

                              definitions

    Sec. 708. As used in this subtitle:
            (1) The term ``Indian tribe'' has the meaning given such 
        term in section 102(a)(17) of the Housing and Community 
        Development Act of 1974.
            (2) The term ``neighborhood'' means an area consisting of 
        such geographic and other characteristics as the Secretary may 
        prescribe.
            (3) The term ``nonprofit organization'' means--
                    (A) an organization--
                            (i) that is described in section 501(c) of 
                        the Internal Revenue Act of 1986; and
                            (ii) is exempt from taxation under section 
                        501(a) of such Code; or
                    (B) an organization--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) that in the case of a private 
                        nonprofit organization, has a voluntary board;
                            (iii) that has an accounting system, or has 
                        designated a fiscal agent in accordance with 
                        requirements established by the Secretary; and
                            (iv) that practices nondiscrimination in 
                        the provision of assistance.
            (4) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
            (5) The term ``State'' has the meaning given the term in 
        section 102(a)(2) of the Housing and Community Development Act 
        of 1974.
            (6) The term ``unit of general local government'' means--
                    (A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    (B) the District of Columbia; and
                    (C) 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 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government, if the Secretary determines 
        that the consortium--
                    (i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    (ii) meets such other requirements as the Secretary 
                may prescribe.

                  Subtitle B--Community Viability Fund

                         program authorization

    Sec. 711. Section 123 of the Housing and Urban-Rural Recovery Act 
of 1983 is amended to read as follows:

                       ``community viability fund

    ``Sec. 123. (a) Authorization.--
            ``(1) Program authority.--The Secretary is authorized, in 
        accordance with the provisions of this section--
                    ``(A) to make grants for strategic planning and 
                urban design, as provided in subsection (b);
                    ``(B) to make grants for community institution 
                building and neighborhood development, as provided in 
                section (c); and
                    ``(C) to provide analysis, information 
                dissemination, travel, technical assistance, and 
                recognition awards, as provided in section (d).
            ``(2) Funding authority.--
                    ``(A) In general.--There are authorized to be 
                appropriated for purposes of this section $130,000,000 
                for fiscal year 1995 and such sums as may be necessary 
                for fiscal year 1996. Any amounts appropriated shall 
                remain available until expended.
                    ``(B) Overall allocation of funds.--Of the amounts 
                appropriated under paragraph (2) for each such year--
                            ``(i) not to exceed $30,000,000 shall be 
                        available for grants for strategic planning and 
                        urban design under subsection (b);
                            ``(ii) not to exceed $100,000,000 shall be 
                        available for grants for community institution 
                        building and neighborhood development under 
                        subsection (c); and
                            ``(iii) not to exceed $10,000,000 shall be 
                        available for analysis, information 
                        dissemination, travel, technical assistance, 
                        and recognition awards under subsection (d).
    ``(b) Grants for Strategic Planning and Urban Design.--
            ``(1) In general.--From amounts set aside under subsection 
        (a)(2)(B)(i), the Secretary is authorized to make grants in 
        furtherance of the objectives of this subsection to States; 
        units of general local government; and metropolitan, non-
        metropolitan, and regional planning agencies.
            ``(2) Categories of activities.--The Secretary is 
        authorized to allocate amounts available under this subsection 
        for the following categories of activities--
                    ``(A) urban design and the development of public 
                amenities in lower income neighborhoods that serve as a 
                catalyst for the renewal of the neighborhood;
                    ``(B) development and implementation of 
                comprehensive plans that focus on local and 
                metropolitan strategies which create sustainable 
                community development at the neighborhood, city, and 
                metropolitan level;
                    ``(C) expanding economic opportunities for persons 
                of low and moderate income through areawide planning 
                approaches that provide educational and employment 
                opportunities for such persons;
                    ``(D) coordinated efforts that stimulate fair 
                housing, further the deconcentration of the poor and 
                minorities, reduce the isolation of income groups 
                within communities, remove barriers to affordable 
                housing development, and expand housing opportunities 
                for persons of low and moderate income;
                    ``(E) the conservation of important historic, 
                visual, and cultural features;
                    ``(F) the development and implementation of 
                comprehensive approaches that integrate poorer, inner-
                city neighborhoods into the greater metropolitan 
                region; and
                    ``(G) such other categories as the Secretary 
                determines will further the purposes of this 
                subsection.
            ``(3) Allocation of funds.--From amounts available under 
        this subsection for any fiscal year, the Secretary shall use--
                    ``(A) 75 percent for competitive grants under 
                paragraph (4); and
                    ``(B) 25 percent for non-competitive grants under 
                paragraph (5).
            ``(4) Competitive grants.--An application for a competitive 
        grant under this subsection shall contain such information, and 
        be submitted by an applicant in such form and in accordance 
        with such procedures, as the Secretary shall prescribe.
            ``(5) Non-competitive grants.--The Secretary shall select 
        grantees for non-competitive grants under this subsection 
        through negotiation with the grantee.
            ``(6) Selection criteria.--The Secretary shall establish 
        selection criteria for grants under paragraphs (4) and (5). The 
        criteria shall include factors such as the extent to which the 
        activities proposed for assistance--
                    ``(A) involve interagency and intergovernmental 
                coordination of Federal, State, and local public, 
                private, and non-profit resources in an integrated 
                manner;
                    ``(B) represent an innovative approach to 
                furthering the objectives of this section; and
                    ``(C) are part of an overall strategic 
                revitalization plan.
            ``(7) Authority of secretary.--The Secretary shall 
        prescribe such additional requirements for the making of grants 
        under this subsection as the Secretary deems appropriate.
    ``(c) Grants for Community Institution Building and Neighborhood 
Development.--
            ``(1) In general.--From amounts set aside under subsection 
        (a)(2)(B)(ii), the Secretary is authorized to make grants to 
        eligible neighborhood development organizations, non-profit 
        organizations, and entities that assist such organizations in 
        carrying out activities under this section, to provide training 
        and other forms of capacity building assistance to improve and 
        expand the ability of community and neighborhood organizations 
        to carry out housing and development programs, and to carry out 
        neighborhood development activities, including those specified 
        in paragraphs (3) (B) through (F).
            ``(2) Allocation of funds.--From amounts available under 
        this subsection for any fiscal year, the Secretary shall use--
                    ``(A) 75 percent for competitive grants under 
                paragraph (4); and
                    ``(B) 25 percent for non-competitive grants under 
                paragraph (5).
            ``(3) Eligible activities.--Activities eligible for 
        assistance under this subsection include--
                    ``(A) training, technical assistance, and capacity 
                building for new and existing organizations and 
                institutions;
                    ``(B) building the capacity of neighborhood 
                organizations and institutions, such as Community 
                Development Corporations, community banks, and credit 
                unions;
                    ``(C) establishing new community-based 
                organizations and institutions;
                    ``(D) promoting joint ventures that expand housing, 
                educational, and employment choices for inner city 
                residents;
                    ``(E) creating permanent jobs available to persons 
                of low and moderate income and unemployed populations;
                    ``(F) establishing or expanding business 
                opportunities within low- and moderate-income 
                neighborhoods;
                    ``(G) developing, rehabilitating, or managing 
                neighborhood housing stock;
                    ``(H) developing delivery mechanisms for essential 
                services that have lasting benefit to the community and 
                neighborhood;
                    ``(I) planning, promoting, or financing voluntary 
                neighborhood improvement efforts; and
                    ``(J) such other activities that the Secretary 
                determines further the purposes of this subsection.
            ``(4) Competitive grants.--An application for a competitive 
        grant under this subsection shall contain such information, and 
        be submitted by an applicant in such form and in accordance 
        with such procedures, as the Secretary shall prescribe.
            ``(5) Non-competitive grants.--The Secretary shall select 
        grantees for non-competitive grants under this subsection 
        through negotiation with the grantee.
            ``(6) Selection criteria.--The Secretary shall establish 
        selection criteria for grants under paragraphs (4) and (5). The 
        criteria shall include the extent to which the proposed 
        activities will--
                    ``(A) develop new community and neighborhood groups 
                in previously unorganized areas for groups that do not 
                yet have the track record necessary to secure project-
                based funding;
                    ``(B) develop new organizations that link housing, 
                economic, and human development;
                    ``(C) coordinate with local law enforcement 
                agencies or local public housing agencies involving 
                anti-crime initiatives;
                    ``(D) leverage matching contributions to support a 
                wide variety of community development initiatives from 
                the private sector; foundations; colleges and 
                universities; civic groups; social, cultural, 
                religious, and other institutions; and the national 
                service program in a manner that achieves greater long-
                term private sector support;
                    ``(E) build the managerial, financial, and 
                administrative capacity of the applicant organization 
                or the community organizations to which it proposes to 
                provide services; and
                    ``(F) assist eligible neighborhood development 
                organizations.
            ``(7) Authority of secretary.--The Secretary shall 
        prescribe such additional requirements for the making of grants 
        under this subsection as the Secretary deems appropriate.
    ``(d) Recognition Awards.--
            ``(1) In general.--From amounts set aside under subsection 
        (a)(2)(B)(iii), the Secretary is authorized to provide awards 
        recognizing excellence and innovation in the preparation and 
        implementation of community-wide and regional strategies or 
        activities hat successfully further sustainable community 
        development by--
                    ``(A) expanding fair housing opportunities;
                    ``(B) furthering economic revitalization;
                    ``(C) reducing economic isolation of income groups 
                within communities and the region;
                    ``(D) expanding housing, educational, and 
                employment choices for persons of low and moderate 
                income throughout a metropolitan area;
                    ``(E) providing amenities in lower income 
                neighborhoods that serve as a catalyst for and result 
                in the neighborhood's revitalization; or
                    ``(F) such other means as the Secretary deems 
                appropriate.
            ``(2) Use of funds.--The Secretary may use amounts under 
        this subsection--
                    ``(A) to provide grants to, or to enter into 
                contracts with, public and private organizations 
                (including governmental, non-profit, and for-profit 
                organizations) to assist in the analysis and selection 
                of award recipients, the provision (directly or by 
                contract) of technical assistance, and the 
                dissemination of information used to carry out the 
                programs authorized under subsections (b) and (c);
                    ``(B) to defray the costs of the Secretary in 
                administering the program authorized by this 
                subsection, including (but not limited to) such costs 
                as--
                            ``(i) printing and disseminating 
                        information;
                            ``(ii) holding conferences;
                            ``(iii) establishing and using design 
                        juries selected by the Secretary;
                            ``(iv) providing nominal awards to winning 
                        nominees;
                            ``(v) holding competitions for awards, 
                        including travel and per diem costs; and
                            ``(vi) travel of award winners to attend 
                        follow-on conferences endorsed by the Secretary 
                        and to provide peer-to-peer assistance to other 
                        appropriate individuals and entities; and
                    ``(C) providing technical assistance, directly or 
                by contract, to further the purposes of this 
                subsection.
            ``(3) Authority of secretary.--The Secretary shall 
        prescribe such requirements for recognition awards under this 
        subsection as the Secretary deems appropriate.
    ``(e) Records, Reports, and Audits.--
            ``(1) Keeping of records.--Each grantee under this section 
        shall keep such records as may be reasonably necessary to 
        disclose the amounts and the disposition of grant amounts 
        received under this section and to ensure compliance with the 
        requirements of this section.
            ``(2) Grantee reports.--Each such grantee shall submit to 
        the Secretary a report, or series of reports, in a form and at 
        a time specified by the Secretary. Each report shall--
                    ``(A) describe the use of funds made available 
                under this section; and
                    ``(B) describe and analyze the effect of assisted 
                activities in addressing the purposes of this section.
            ``(3) Access to documents by the secretary.--The Secretary 
        shall have access for the purpose of audit and examination to 
        any books, documents, papers, and records of the grantee that 
        are pertinent to assistance received in connection with, and 
        the requirements of, this section.
            ``(4) Access to document by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records of the grantee that are 
        pertinent to assistance received under, and the requirements 
        of, this section.
    ``(f) Definitions.--As used in this section:
            ``(1) For purposes of subsection (c), the term `eligible 
        neighborhood development organization' means--
                    ``(A) an entity organized as a nonprofit 
                organization incorporated under the laws of the State 
                in which it operates;
                    ``(B) an organization that is responsible to 
                residents of its neighborhood through a governing body, 
                not less than 51 percent of the members of which reside 
                within the boundaries of the area served;
                    ``(C) an organization that has conducted business 
                for at least one year before the date of an application 
                for a grant; and
                    ``(D) an organization that conducts neighborhood 
                development activities that have as their primary 
                beneficiaries persons of low and moderate income.
            ``(2) The term `nonprofit organization' means--
                    ``(A) an organization--
                            ``(i) that is described in section 501(c) 
                        of the Internal Revenue Act of 1986; and
                            ``(ii) is exempt from taxation under 
                        section 501(a) of such Code; or
                    ``(B) an organization--
                            ``(i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            ``(ii) that in the case of a private 
                        nonprofit organization, has a voluntary board;
                            ``(iii) that has an accounting system, or 
                        has designated a fiscal agent in accordance 
                        with requirements established by the Secretary; 
                        and
                            ``(iv) that practices nondiscrimination in 
                        the provision of assistance.
            ``(3) The term `persons of low- and moderate-income' has 
        the meaning given the term in section 102(a)(20) of the Housing 
        and Community Development Act of 1974.
            ``(4) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(5) The term `State' has the meaning given the term in 
        section 102(a)(2) of the Housing and Community Development Act 
        of 1974.
            ``(6) The term `unit of general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) 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 section.
        The term includes a consortium of geographically contiguous 
        units of general local government, if the Secretary determines 
        that the consortium--
                    ``(i) has sufficient authority and administrative 
                capability to carry out the purposes of this section on 
                behalf of its member jurisdictions; and
                    ``(ii) meets such other requirements as the 
                Secretary may prescribe.''.
    Sec. 712. Savings Provision.--(a) Previous Grants.--Any grant 
approved under such section 123 before the effective date of this 
section shall continue to be governed by the provisions of section 123.
    (b) Effective Date.--This section shall become effective on the 
later of October 1, 1994 or the date of enactment of this Act.

         Subtitle C--Colonias Assistance Program Authorization

    Sec. 721. (a) Program Authorization.--The Secretary is authorized 
to make grants in accordance with the provisions of this subtitle to 
units of general local government, States, non-profit organizations, or 
entities or instrumentalities established under the authority of any of 
these entities, for use in addressing the community development and 
housing needs of colonias.
    (b) Funding Authorization.--
            (1) In general.--There are authorized to be appropriated 
        for purposes of this subtitle $100,000,000 for each of fiscal 
        years 1995 and 1996. Any amount appropriated shall remain 
        available until expended.
            (2) Allocation of funds.--Of the amounts appropriated under 
        paragraph (1) for any fiscal year--
                    (A) 80 percent shall be available for grants to 
                establish model programs under section 723; and
                    (B) 20 percent shall be available for competitive 
                grants under section 724.

                          eligible activities

    Sec. 722. Assistance under this subtitle may be used to carry out 
the following activities--
            (1) any activity eligible under section 105 of the Housing 
        and Community Development Act of 1974 or section 212(a) of the 
        HOME Investment Partnerships Act;
            (2) refinancing the existing debt of homeowners to convert 
        existing ownership regimes into mortgages;
            (3) the construction of new housing, including self-help, 
        energy-efficient, and innovative housing design initiatives;
            (4) the development of new subdivisions for affordable 
        housing;
            (5) the re-platting and redevelopment of existing 
        subdivisions;
            (6) the planning for, and construction of, infrastructure 
        necessary for the development of housing, economic development, 
        and community facilities and amenities; and
            (7) such other activities as the Secretary deems 
        appropriate to further the purposes of this subtitle.

                             model programs

    Sec. 723. (a) In General.--Of amounts allocated under section 
721(b)(2)(A), the Secretary shall make grants to the entities referred 
to in section 721(a) for the purpose of establishing model programs of 
assistance for addressing the community development, housing, and other 
needs of the residents of the colonias.
    (b) Selection of Grantees.--
            (1) Geographic distribution.--The Secretary shall 
        designate--
                    (A) at least one project in each State; and
                    (B) at least one project within a metropolitan area 
                in any State.
            (2) Selection processs.--
                    (A) In general.--The Secretary shall select 
                grantees under this section on a non-competitive basis, 
                through negotiation with the grantee.
                    (B) Selection criteria.--In selecting projects, the 
                Secretary shall consider--
                            (i) the extent of need in the colonia;
                            (ii) the likely effectiveness of the 
                        proposed approach in addressing identified 
                        needs;
                            (iii) the extent to which funding for the 
                        project is committed from sources other than 
                        under this subtitle;
                            (iv) the need to consider a variety of 
                        solutions to a variety of needs situations; and
                            (v) such other factors as the Secretary 
                        deems appropriate to carry out the objectives 
                        of this subtitle.

                           competitive grants

    Sec.  724. (a) Funding Set-aside.--
            (1) In general.--Of amounts allocated under section 
        721(b)(2)(B), the Secretary shall set aside a target amount for 
        grants under this section for use in colonias in each State. 
        The Secretary shall determine the amount to be set aside, based 
        on such objective factors of need as the Secretary deems 
        appropriate, which may include rates of poverty in, and the 
        population of, colonias. The Secretary shall reallocate any 
        amounts set-aside under this paragraph for which the Secretary 
        determines there will not be sufficient approvable applications 
        in a fiscal year.
            (2) Use of funds.--Any amount not set aside or reallocated 
        under paragraph (1) may be used in colonias in any State.
    (b) Authority To Make Grants.--Grants under this section shall be 
made, in accordance with subsection (a), to the entities referred to in 
section 721(a), for the purpose of assisting the community development 
and housing needs of the residents of one or more colonias in an area 
or region.
    (c) Applications.--Applications under this section shall contain 
such information, and shall be submitted at such time and in accordance 
with such procedures, as the Secretary shall prescribe.
    (d) Selection of Grantees.--
            (1) In general.--The Secretary shall select grantees under 
        this section on the basis of a competition, following 
        publication of a notice of funding availability in the Federal 
        Register.
            (2) Selection criteria.--In selecting projects, the 
        Secretary shall consider--
                    (A) the extent of need in the colonia;
                    (B) the likely effectiveness of the proposed 
                approach in addressing identified needs;
                    (C) the extent to which funding for the project is 
                committed from sources other than under this subtitle;
                    (D) the extent to which the application represents 
                an innovative approach to addressing the needs of 
                colonias; and
                    (E) such other factors as the Secretary deems 
                appropriate to carry out the objectives of this 
                subtitle.

                      records, reports, and audits

    Sec. 725. (a) Keeping of Records.--Each grantee shall keep such 
records as may be reasonably necessary to disclose the amounts and the 
disposition of grant amounts received under this subtitle and to ensure 
compliance with the requirements of this subtitle.
    (b) Grantee Reports.--Each grantee shall submit to the Secretary a 
report, or series of reports, in a form and at a time specified by the 
Secretary. Each report shall--
            (1) describe the use of funds made available under this 
        subtitle; and
            (2) describe the analyze the effect of assisted activities 
        in addressing the community development and housing needs of 
        the residents of colonias.
    (c) Access to Documents by the Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of the grantee that are pertinent to 
assistance received in connection with, and the requirements of, this 
subtitle.
    (d) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access to the 
purpose of audit and examination to any books, documents, papers, and 
records of the grantee that are pertinent to assistance received under, 
and the requirements of, this subtitle.

                              definitions

    Sec. 726. As used in this subtitle:
            (1) The terms ``colonia'' and ``United States-Mexico Border 
        Region'' have the meanings given those terms in sections 916(e) 
        (1) and (4), respectively, of the Cranston-Gonzalez National 
        Affordable Housing Act.
            (2) The term ``metropolitan area'' has the meaning given 
        the term in section 102(a)(3) of the Housing and Community 
        Development Act of 1974.
            (3) The term ``nonprofit organization'' means--
                    (A) an organization--
                            (i) that is described in section 501(c) of 
                        the Internal Revenue Act of 1986; and
                            (ii) that is exempt from taxation under 
                        section 501(a) of such Code; or
                    (B) an organization--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) that in the case of a private 
                        nonprofit organization, has a voluntary board;
                            (iii) that has an accounting system, or has 
                        designated a fiscal agent in accordance with 
                        requirements established by the Secretary; and
                            (iv) that practices nondiscrimination in 
                        the provision of assistance.
            (4) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
            (5) The term ``State''' means the States of California, 
        Arizona, New Mexico, and Texas.
            (6) The term ``unit of general local government'' means--
                    (A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    (B) the District of Columbia; and
                    (C) 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 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government, if the Secretary determines 
        that the consortium--
                    (i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    (ii) meets such other requirements as the Secretary 
                may prescribe.

extension of colonia program under section 916 of the cranston-gonzalez 
                    national affordable housing act

    Sec. 727. Section 916(f) of the Cranston-Gonzalez National 
Affordable Housing Act is amended by striking ``1991'' and all that 
follows up to the period and inserting in lieu thereof the following: 
``beginning before fiscal year 1998''.

     Subtitle D--Zone Economic Development Initiative Authorization

    Sec. 731. The Secretary of Housing and Urban Development may make 
grants to units of general local government in which Empowerment Zones 
and Enterprise Communities have been designated pursuant to section 
1391 of the Internal Revenue Code of 1986.

                                purpose

    Sec. 732. The purpose of grants under this subtitle is to assist 
units of general local government in implementing the strategic plan 
for community revitalization requirement for each designated Zone and 
Community by expanding business opportunities and job creation and by 
stimulating the use of project-based rental assistance certificates and 
other activities to construct or rehabilitate rental housing.

                          eligible activities

    Sec. 733. (a) Economic Development.--Economic development 
activities are those that are eligible under title I of the Housing and 
Community Development Act of 1974.
    (b) Assisted Housing.--Eligible assisted housing activities 
include, but are not limited to--
            (1) project-based assistance activities eligible under 
        section 8 of the United States Housing Act of 1937 or similar 
        State and local programs; and
            (2) activities eligible for assistance under the HOME 
        program or a similar local affordable housing program.
    (c) Technical Assistance.--From amounts set aside under section 
737(b), the Secretary shall carry out, directly or through contracts, 
training and information activities in connection with the program 
authorized by this subtitle.

                          allocation of funds

    Sec. 734. (a) Application.--A locality in which an empowerment zone 
or enterprise community has been designated, where the designation 
remains in effect, may submit an application to the Secretary for a 
grant under this subtitle. The application shall contain such 
information and certifications as the Secretary may require, including 
a certification that the grant will be used in accordance with the 
approved strategic plan. Where a zone or community is within the 
jurisdiction of more than one unit of general local government, each 
shall join in the application. The application shall specify whether, 
and if so how, the grant is to be divided among one or more 
governments.
    (b) Funding.--For applications approved by the Secretary--
            (1) each urban Empowerment Zone shall receive $50,000,000;
            (2) each rural Empowerment Zone shall receive $20,000,000; 
        and
            (3) each Enterprise Community shall receive $1,400,000.
    (c) Terms and Conditions.--Grants made under this subtitle shall be 
subject to such terms and conditions as the Secretary may establish.

                use in conjunction with loan guarantees

    Sec. 735. Grants made under this subtitle may be used in 
conjunction with loans guaranteed under section 108 of the Housing and 
Community Development Act of 1974 and section 227 of the Home 
Investment Partnerships Act.

                      records, reports, and audits

    Sec. 736. (a) Keeping of Records.--Each grantee shall keep such 
records as may be reasonably necessary to disclose the amounts and the 
disposition of grant amounts received under this subtitle and to ensure 
compliance with the requirements of this subtitle.
    (b) Grantee Reports.--Each grantee shall submit to the Secretary a 
report, or series of reports, in a form and at a time specified by the 
Secretary. Each report shall--
            (1) describe the use of funds made available under this 
        subtitle; and
            (2) describe and analyze the effect of assisted activities 
        in addressing the objectives of this subtitle.
    (c) Access to Documents by the Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of the grantee that are pertinent to 
assistance received in connection with, and the requirements of, this 
subtitle.
    (d) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of the grantee that are pertinent to assistance received under, 
and the requirements of, this subtitle.

                         funding authorization

    Sec. 737. (a) There authorized to be appropriated for purposes of 
this subtitle $500,000,000 for fiscal year 1995 and such sums as may be 
necessary for fiscal year 1996. Any amount appropriated shall remain 
available until expended.
    (b) Of the amounts appropriated under subsection (a) for any fiscal 
year and not allocated under section 734(b), the Secretary shall set 
aside any balance to carry out the training and information activities 
referred to in section 733(c).

              Subtitle E--Authorizations of Appropriations

   capacity building for community development and affordable housing

    Sec. 741. Section 4(e) of the HUD Demonstration Act of 1993 (42 
U.S.C. 9816 note) is amended to read as follows:
    ``(e) Authorization.--There are authorized to be appropriated 
$20,000,000 for fiscal year 1995 and such sums as may be necessary for 
fiscal year 1996, to carry out this section.''.

                   community development block grants

    Sec. 742. (a) Community Development Block Grants.--The second 
sentence of section 103 of the Housing and Community Development Act of 
1974 (42 U.S.C. 5303) is amended to read as follows: ``For purposes of 
assistance under section 106, there are authorized to be appropriated 
$4,400,000,000 for fiscal year 1995 and $4,400,000,000 for fiscal year 
1996.''.
    (b) Limitation on Loan Guarantees.--The fifth sentence of section 
108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308(a)) is amended to read as follows: ``Notwithstanding any other 
provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
section, to the extent approved in appropriation Acts, the Secretary 
shall enter into commitments to guarantee notes and obligations under 
this section with an aggregate principal amount of $2,054,000,000 for 
fiscal year 1995 and $2,054,000,000 for fiscal year 1996.''.
    (c) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)) is amended by 
striking out all that follows ``the following purposes:'' and inserting 
in lieu thereof the following:
                    ``(A) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(1);
                    ``(B) $6,500,000 shall be available in each such 
                year for grants under subsection (b)(3);
                    ``(C) $28,000,000 shall be available in each such 
                year for activities under subsection (b)(4);
                    ``(D) $6,000,000 shall be available in each such 
                year under subsection (b)(5);
                    ``(E) $2,000,000 shall be available in each such 
                year for grants under subsection (b)(6);
                    ``(F) $3,000,000 shall be available in each such 
                year for grants under subsection (c); and
                    ``(G) such sums as may be necessary shall be 
                available in each such year for grants under paragraph 
                (2) of subsection (b).''.

                    economic development initiative

    Sec. 743. Section 108(q)(1) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308) is amended by adding to the 
end thereof the following sentence: ``There are authorized to be 
appropriated to carry out this subsection $50,000,000 for fiscal year 
1995 and such sums as may be necessary for fiscal year 1996, to remain 
available until expended.''.

                     TITLE VIII--MANAGEMENT REFORM

        Subtitle a--Improve the Allocation and Use of Assistance

  limit section 8 contract rent adjustments for rents above section 8 
                         existing housing fmrs

    Sec. 801. (a) Section 8(c)(2)(A) of the United States Housing Act 
of 1937 is amended by inserting at the end the following: ``However, 
where the maximum monthly rent, for a unit in a new construction, 
substantial rehabilitation, or moderate rehabilitation project, to be 
adjusted using an annual adjustment factor exceeds the fair market 
rental for an existing dwelling unit in the market area, the Secretary 
shall adjust the rent only to the extent that the owner demonstrates 
that the adjusted rent would not exceed the rent for an unassisted unit 
of similar quality, type, and age in the same market area, as 
determined by the Secretary.''.
    (b) The amendment made by subsection (a) shall apply to all 
contracts for new construction, substantial rehabilitation, and 
moderate rehabilitation projects under which rents are adjusted under 
section 8(c)(2)(A) of such Act by applying an annual adjustment factor.

 provide incentives to refinance high interest mortgages for section 8 
                                projects

    Sec. 802. Section 8 of the United States Housing Act of 1937 is 
amended by inserting the following new subsection at the end:
    ``(z) Refinancing Incentive.--For a project that (1) was 
constructed, substantially rehabilitated, or moderately rehabilitated 
under this section, (2) is subject to an assistance contract under this 
section, and (3) was subject to a mortgage that has been refinanced 
under section 223(a)(7) or section 223(f) of the National Housing Act 
to lower the periodic debt service payments of the owner, the Secretary 
may pay the owner the amount of the upfront costs to the owner of 
refinancing. The Secretary may make such payments only from savings in 
the amount of assistance payments, as determined by the Secretary on a 
project-by-project basis and after application of amounts in accordance 
with section 1012 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988, that result from the refinancing during the 
first year after the refinancing.''.

                              lmsa reforms

    Sec. 803. (a) Section 8(v)(1) of the United States Housing Act of 
1937 is amended to read as follows:
    ``(v)(1) In the case of a contract entered into under this section 
for loan management assistance, the Secretary may reduce the number of 
units covered by the contract by one for each family that moves out of 
the project. This paragraph shall not apply in the case of a contract 
for loan management assistance entered into as an incentive under the 
Emergency Low Income Housing Preservation Act of 1987 or the Low-Income 
Housing Preservation and Resident Homeownership Act of 1990.''.
    (b) The amendment made by subsection (a) shall apply to all 
contracts for loan management assistance entered into under section 8 
of such Act.

  reduce aaf for units where family has not moved since previous year

    Sec. 804. (a) Section 8(c)(2)(A) of the United States Housing Act 
of 1937, as amended by section 801 of this Act, is further amended by 
inserting at the end the following: ``For any unit occupied by the same 
family at the time of the last annual rent adjustment, where the 
assistance contract provides for the adjustment of the maximum monthly 
rent by applying an annual adjustment factor and where the rent for a 
unit is otherwise eligible for an adjustment based on the full amount 
of the factor, 0.01 shall be subtracted from the amount of the factor, 
except that the factor shall not be reduced to less than 1.0.''.
    (b) The amendment made by subsection (a) shall apply to all 
contracts that are subject to section 8(c)(2)(A) of such Act and that 
provide for rent adjustments using an annual adjustment factor.

                    preference for working families

    Sec. 805. The United States Housing Act of 1937 is amended--
            (1) in each of sections 6(c)(4)(A)(ii) and 8(d)(1)(A)(ii), 
        by striking ``and (V)'' and inserting in lieu thereof the 
        following: ``(V) assisting families that include one or more 
        adult members who are employed; and (VI)''; and
            (2) in the penultimate sentence of section 16(c), by 
        striking ``under the system'' and all that follows up to the 
        period.

          use of technical assistance fund by or for hud staff

    Sec. 806. Section 7 of the Department of Housing and Urban 
Development Act is amended by adding at the end thereof a new 
subsection, as follows:
    ``(r) The Secretary may transfer to any of the accounts of the 
Department for salaries and expenses from any other account from which 
funds may be drawn for technical assistance such amounts as the 
Secretary determines are reasonable to reimburse such salaries and 
expenses account. Such reimbursement shall be for expenditures for the 
costs of personal services, travel, and transportation, and other 
object classifications that are incurred for the technical assistance, 
training, and related activities provided by or to officials and 
employees of the Department for a program that is funded from such 
other account and in which the costs of technical assistance are 
otherwise eligible for expenditure. Up to 10 percent of the amount that 
may be transferred may be used for technical assistance, training, 
travel, and related expenses provided to officials and employees of the 
Department. The authority to transfer provided in this subsection shall 
be in addition to any other authority to transfer funds among accounts 
that the Secretary may now or hereafter have.''.

            Subtitle B--Office of Public and Indian Housing

   oversight, technical assistance, emergency action resources, and 
              resident survey for public housing programs

    Sec. 811. (a) Section (3) of the United States Housing Act of 1937 
is amended by adding to the end thereof the following new subsection:
    ``(d) As used in sections 5 and 14, the term `technical assistance 
and services' shall include (but not be limited to) any or all 
undertakings by the Secretary, directly using officials and employees 
of the Secretary, or indirectly under contract or otherwise, related to 
the inspection or oversight of project or program development or 
implementation; training and technical assistance; public housing 
agency or Indian housing authority program, project, or general 
management; crisis management and operations; and survey research; and 
the preparation of reports of recommendations to the Secretary.''.
    (b) Section 5(c) of such Act is amended by adding at the end 
thereof the following new paragraph:
            ``(9) From amounts appropriated pursuant to this Act and 
        earmarked for public housing development (including Indian 
        housing development) up to one-half of one per centum shall be 
        made available to the Secretary for technical assistance and 
        services.''.
    (c) Section 14(k)(1) of such Act is redesignated as section 
14(k)(1)(A), and amended by adding the following new paragraph, after 
such redesignated subparagraph, as follows:
                    ``(B) From amounts approved in appropriation Acts 
                for grants under this section in any fiscal year, up to 
                one per centum shall be made available to the Secretary 
                for technical assistance and services.''.

                    recapture of development amounts

    Sec. 812. Section 5(k) of the United States Housing Act of 1937 is 
amended by adding before the period at the end of the first sentence a 
comma and the following: ``unless the Secretary finds that there is no 
feasible way for the agency to begin construction or rehabilitation, or 
to complete acquisition, within such period''.

                     Subtitle C--Office of Housing

                        section 235 refinancing

    Sec. 821. Section 235(r) of the National Housing Act is amended--
            (1) in paragraph (2)(C), by inserting after ``refinanced'' 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B) to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate as permitted by subparagraph (E) or paid by 
        the Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4):
                    (A) by inserting after ``otherwise)'' the 
                following: ``and the mortgagee with respect to the 
                amount described in paragraph (A)''; and
                    (B) in subparagraph (A), by inserting after 
                ``mortgagor'' the following: ``and the mortgagee''; and
            (3) by revising paragraph (5) to read as follows:
            ``(5) The Secretary shall use amounts of budget authority 
        recaptured from assistance payments contracts relating to 
        mortgages that are being refinanced for assistance payments 
        contracts with respect to mortgages insured under this 
        subsection. The Secretary may also make such recaptured amounts 
        available for incentives under paragraph (4)(A) and the costs 
        incurred in connection with the refinancing under paragraph 
        (4)(B). For purposes of subsection (c)(3)(A), the amount of 
        recaptured budget authority that the Secretary commits for 
        assistance payments contracts relating to mortgages insured 
        under this subsection and for amounts paid under paragraph (4) 
        shall not be construed as `unused.'''.

  elimination of new activity in low-use fha multifamily development 
                                programs

    Sec. 822. (a) Section 207 of the National Housing Act is amended by 
adding the following new subsection at the end thereof:
    ``(s) Beginning 30 days after the effective date of the Housing 
Choice and Community Investment Act of 1994, the Secretary may not 
accept new applications for mortgage insurance under this section with 
respect to mortgages involving (1) the new construction or substantial 
rehabilitation of properties or projects or (2) manufactured home 
parks.''.
    (b) Section 220 of such Act is amended by adding the following new 
subsection at the end thereof:
    ``(i) Beginning 30 days after the effective date of the Housing 
Choice and Community Investment Act of 1994, the Secretary may not 
accept new applications for mortgage insurance under this section with 
respect to mortgages involving the new construction or substantial 
rehabilitation of multifamily projects.''.
    (c) Section 231(b) of the such Act is amended by adding the 
following new sentence at the end thereof: ``Beginning 30 days after 
the effective date of the Housing Choice and Community Investment Act 
of 1994, the Secretary may not accept new applications for mortgage 
insurance under this section.''.
    (d) Section 234(d) of such Act is amended by adding the following 
new flush material at the end thereof:
``Beginning 30 days after the effective date of the Housing Choice and 
Community Investment Act of 1994, the Secretary may not accept new 
applications for mortgage insurance under this subsection.''.
    (e) Section 1101 of such Act is amended by adding the following new 
sentence at the end thereof: ``Beginning 30 days after the effective 
date of the Housing Choice and Community Investment Act of 1994, the 
Secretary may not accept new applications for mortgage insurance under 
this title.''.

                  indemnification for project managers

    Sec. 823. Section 207(l) of the National Housing Act is amended by 
inserting the following before the period: ``: Provided further, That, 
for properties acquired by the Secretary under this section and for 
properties secured by any mortgage assigned and transferred to or held 
by the Secretary, the Secretary may indemnify management contractors 
against claims by third persons for death, bodily injury, or loss of or 
damage to property on such terms as the Secretary determines 
appropriate''.

  Subtitle D--Office of Community Planning and Development Management 
                          Information Systems

    Sec. 831. Management Information Systems.--Section 103 of the 
Housing and Community Development Act of 1974 is amended--
            (1) by inserting the subsection designation ``(a)'' 
        immediately after ``103''; and
            (2) by adding the following new subsection at the end 
        thereof:
    ``(b) Of the amount approved in an appropriation Act for each of 
fiscal years 1995 and 1996 under this section, up to 0.5 percent may be 
set aside by the Secretary for improving management information systems 
used by the Secretary and recipients under this title.''.

                           cdbg reallocations

    Sec. 832. Section 106(c) of the Housing and Community Development 
Act of 1974 is amended by striking paragraph (4).

                         use of udag recaptures

    Sec. 833. Section 119(o) of the Housing and Community Development 
Act of 1974 is amended by striking ``October 1, 1993'' and inserting in 
lieu thereof ``April 11, 1994''.

    Subtitle E--Nonjudicial Foreclosure of Defaulted Single Family 
                               Mortgages

    Sec. 841. Short Title.--This subtitle may be cited as the ``Single 
Family Mortgage Foreclosure Act of 1994''.
    Sec. 842. Findings and Purpose.--(a) Findings.--The Congress finds 
that--
            (1) disparate State laws under which mortgages are 
        foreclosed on behalf of the Secretary of Housing and Urban 
        Development covering one- to four-family residential properties 
        burden certain programs administered by the Secretary, increase 
        the costs of collecting these obligations, and cause detriment 
        to the community generally;
            (2) long periods to complete the foreclosure of these 
        mortgages under certain State laws lead to deterioration in the 
        condition of the properties involved; necessitate substantial 
        Federal holding expenditures; increase the risk of vandalism, 
        fire loss, depreciation, damage, and waste with respect to the 
        properties; and adversely affect the neighborhoods in which the 
        properties are located;
            (3) these conditions seriously impair the Secretary's 
        ability to protect the Federal financial interest in the 
        affected properties and frustrate attainment of the objectives 
        of the underlying Federal program authority;
            (4) the availability of a uniform and more expeditious 
        procedures, with no right of redemption in the mortgagor or 
        others, for the foreclosure of these mortgages by the Secretary 
        will tend to ameliorate these conditions; and
            (5) providing the Secretary with a nonjudicial foreclosure 
        procedure will reduce unnecessary litigation by removing many 
        foreclosures from the courts where they contribute to 
        overcrowded calendars.
    (b) Purpose.--The purpose of this subtitle is to create a uniform 
Federal foreclosure remedy for single family mortgages that (1) are 
held by the Secretary of Housing and Urban Development pursuant to 
title I or title II of the National Housing Act or (2) secure loans 
obligated by the Secretary under section 312 of the Housing Act of 
1964.
    Sec. 843. Definitions.--As used in this subtitle--
            (1) ``bona fide purchaser'' means a purchaser for value in 
        good faith and without notice of any adverse claim, who will, 
        therefore, acquire the security property free of any adverse 
        claim;
            (2) ``mortgage'' means a deed of trust, mortgage, deed to 
        secure debt, security agreement, or any other form of 
        instrument under which any interest in property, real, personal 
        or mixed, or any interest in property including leaseholds, 
        life estates, reversionary interests, and any other estates 
        under applicable State law, is conveyed in trust, mortgaged, 
        encumbered, pledged, or otherwise rendered subject to a lien 
        for the purpose of securing the payment of money or the 
        performance of an obligation;
            (3) ``single family mortgage'' means a mortgage that covers 
        property on which there is located a one- to four-family 
        residence, which mortgage--
                    (A) is held by the Secretary pursuant to title I or 
                title II of the National Housing Act, or
                    (B) secures a loan obligated by the Secretary under 
                section 312 of the Housing Act of 1964, as it existed 
                before its repeal by section 289 of the Cranston-
                Gonzalez National Affordable Housing Act (except that a 
                mortgage securing such a loan that covers property 
                containing non-residential space and a one- to four-
                family dwelling shall not be subject to this Act);
            (4) ``mortgage agreement'' means the note or debt 
        instrument and the mortgage instrument, deed of trust 
        instrument, trust deed, or instrument or instruments creating 
        the mortgage, including any instrument incorporated by 
        reference therein and any instrument or agreement amending or 
        modifying any of the foregoing;
            (5) ``mortgagor'' means the obliger, grantor, or trust 
        named in the mortgage agreement and, unless the context 
        otherwise indicates, includes the current owner of record of 
        the security property whether or not personally liable on the 
        mortgage debt;
            (6) ``owner'' means any person who has an ownership 
        interest in property and includes heirs, devises, executors, 
        administrators, and other personal representatives, and 
        trustees of testamentary trusts if the owner of record is 
        deceased;
            (7) ``person'' includes any individual, group of 
        individuals, association, partnership, corporation, or 
        organization;
            (8) ``record'' and ``recorded'' include ``register'' and 
        ``registered'' in the instance of registered land;
            (9) ``security property'' means the property (real, 
        personal or mixed) or an interest in property (including 
        leaseholds, life estates, reversionary interests, and any other 
        estates under applicable State law), together with fixtures and 
        other interests subject to the lien of the mortgage under 
        applicable State law;
            (10) ``State'' means the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, the Northern Mariana 
        Islands, the Trust Territory of the Pacific Islands, and Indian 
        tribes as defined by the Secretary;
            (11) ``county'' means county as defined in title 2 of title 
        I, United States Code; and
            (12) ``Secretary'' means the Secretary of Housing and Urban 
        Development.
    Sec. 844. Applicability.--Single family mortgages encumbering real 
estate located in any State may be foreclosed by the Secretary in 
accordance with this subtitle, or pursuant to other foreclosure 
procedures available, at the option of the Secretary.
    Sec. 845. Designation of Foreclosure Commissioner.--A foreclosure 
commissioner or commissioners designated pursuant to this subtitle 
shall have a nonjudicial power of sale as provided in this subtitle. 
Where the Secretary wishes to foreclose upon a single family mortgage, 
the Secretary may designate a foreclosure commissioner and, with or 
without cause, may designate a substitute foreclosure commissioner to 
replace a previously designated foreclosure commissioner, by executing 
a duly acknowledged, written designation stating the name and business 
or residential address of the commissioner or substitute commissioner. 
The designation shall be effective upon execution. The foreclosure 
commissioner, if a natural person, shall be a resident of the State in 
which the security property is located and, if not a natural person, 
the foreclosure commissioner must be duly authorized to transact 
business under laws of the State in which the security property is 
located. The foreclosure commissioner shall be a person who is 
responsible, financially sound, and competent to conduct the 
foreclosure. More than one foreclosure commissioner may be designated. 
If a natural person is designated as foreclosure commissioner or 
substitute foreclosure commissioner, such person shall be designated by 
name, except that where such person is designated in his or her 
capacity as an official or employee of a government or corporate 
entity, such person may be designated by his or her unique title or 
position instead of by name.
    Sec. 846. Prerequisites to Foreclosure.--Foreclosure by the 
Secretary under this subtitle of a single family mortgage may be 
commenced, as provided in section 848, upon the breach of a covenant or 
condition in the mortgage agreement for which foreclosure is authorized 
under the mortgage, except that no such foreclosure may be commenced 
unless any previously pending proceeding, judicial or nonjudicial, 
separately instituted by the Secretary to foreclose the mortgage other 
than under this subtitle has been withdrawn, dismissed, or otherwise 
terminated. No such separately instituted foreclosure proceeding on the 
mortgage shall be instituted by the Secretary during the pendency of 
foreclosure pursuant to this subtitle. Nothing in this subtitle shall 
preclude the Secretary from enforcing any right, other than 
foreclosure, under applicable Federal or State law, including any right 
to obtain a monetary judgment. Nothing in this subtitle shall preclude 
the Secretary from foreclosing under this subtitle where the Secretary 
has obtained or is seeking any other remedy available pursuant to 
Federal or State law or under the mortgage agreement, including, but 
not limited to, the appointment of a receiver, mortgage-in-possession 
status, or relief under an assignment of rents.
    Sec. 847. Notice of Foreclosure Sale.--The notice of foreclosure 
sale to be served in accordance with this subtitle shall be subscribed 
with the name and address of the foreclosure commissioner and the date 
on which subscribed, and shall set forth the following information:
            (1) The names of the Secretary, the original mortgagee (if 
        other than the Secretary), and the original mortgagor.
            (2) The street address or a description of the location of 
        the security property, and a description of the security 
        property, sufficient to identify the property to be sold.
            (3) The date of the mortgage, the office is which the 
        mortgage is recorded, and the liber and folio or other 
        description of the location of recordation of the mortgage.
            (4) The failure to make payment, including the due date of 
        the earliest installment payment remaining wholly unpaid as of 
        the date the notice is subscribed, or the description of other 
        default or defaults upon which foreclosure is based, and the 
        acceleration of the secured indebtedness.
            (5) The date, time, and place of the foreclosure sale;
            (6) A statement that the foreclosure is being conducted 
        pursuant to this subtitle.
            (7) The types of costs, if any, to be paid by the purchaser 
        upon transfer of title.
            (8) The amount and method of deposit to be required at the 
        foreclosure sale (except that no deposit shall be required of 
        the Secretary), the time and method of payment of the balance 
        of the foreclosure purchase price, and other appropriate terms 
        of sale.
    Sec. 848. Commencement of Foreclosure.--(a) If the Secretary as 
holder of a single family mortgage determines that the prerequisites to 
foreclosure set forth in section 846 are satisfied, the Secretary may 
request the foreclosure commissioner to commence foreclosure of a 
single family mortgage. Upon such request, the foreclosure commissioner 
shall commence foreclosure of the mortgage, by commencing service of a 
notice of default and foreclosure sale in accordance with section 849.
    (b) After commencement of a foreclosure under this subtitle, the 
Secretary may designate a substitute foreclosure commissioner at any 
time before the time of foreclosure sale, and the foreclosure shall 
continue without prejudice, unless the substitute commissioner, in his 
or her sole discretion, finds that continuation of the foreclosure sale 
will unfairly affect the interests of the mortgagor. If the substitute 
commissioner makes such a finding, the substitute commissioner shall 
cancel the foreclosure sale, or adjourn such sale in the manner 
provided in section 851(c). Upon designation of a substitute 
foreclosure commissioner, a copy of the written notice of such 
designation referred to in section 845 shall be served (1) by mail, as 
provided in such section 849 (except that the minimum time periods 
between mailing and the date of foreclosure sale prescribed in such 
section shall not apply), or (2) in any other manner which, in the 
substitute commissioner's sole discretion, is conducive to achieving 
timely notice of such substitution.
    Sec. 849. Service of Notice of Foreclosure Sale.--The foreclosure 
commissioner shall serve the notice of foreclosure sale provided for in 
section 847 upon the following persons and in the following manner, and 
no additional notice shall be required to be served, notwithstanding 
any notice requirements of any State or local law:
            (1) Timing.--At least 21 days prior to the date of the 
        foreclosure sale, the notice of foreclosure sale required by 
        section 848 of this subtitle shall be filed in the manner 
        authorized for filing a notice of an action concerning real 
        property according to the law of the State where the security 
        property is located or, if none, in the manner authorized by 
        section 3201 of title 28, United States Code.
            (2) Notice by mail.--The notice of foreclosure sale shall 
        be sent by certified or registered mail, postage prepaid and 
        return receipt requested to the following:
                    (A) The current security property owner of record, 
                as the record exists 45 days before the date originally 
                set for foreclosure sale, whether or not the notice 
                describes a sale adjourned as provided in this 
                subtitle.
                    (B) All mortgagors of record or other persons who 
                appear of record or in the mortgage agreement to be 
                liable for part or all of the mortgage debt, as the 
                record exists 45 days before the date originally set 
                for foreclosure sale, whether or not the notice 
                describes a sale adjourned as provided in this 
                subtitle, except any such mortgagors or persons who 
                have been released.
                    (C) All dwelling units in the security property, 
                whether or not the notice describes a sale adjourned as 
                provided in this subtitle.
                    (D) All persons holding liens of record upon the 
                security property, as the record exists 45 days before 
                the date originally set for foreclosure sale, whether 
                or not the notice describes a sale adjourned as 
                provided in this subtitle.
        Notice under clauses (A) and (B) of this paragraph shall be 
        mailed at least 21 days before the date of foreclosure sale, 
        and shall be mailed to the owner or mortgagor at the last known 
        address of the owner or mortgagor, or, if none, to the address 
        of the security property, or, at the discretion of the 
        foreclosure commissioner, to any other address believed to be 
        that of such owner or mortgagor. Notice under clause (C) of 
        this paragraph shall be mailed at least 21 days before the date 
        of foreclosure sale. If the names of the occupants of the 
        security property are not known to the Secretary, or the 
        security property has more than one dwelling, the notice shall 
        be posted at the security property at least 21 days prior to 
        the foreclosure sale. Notice under clause (D) of this paragraph 
        shall be mailed at least 21 days before the date of foreclosure 
        sale, and shall be mailed to each such lienholder's address as 
        stated of record or, at the discretion of the foreclosure 
        commissioner, to any other address believed to be that of such 
        lienholder. Notice by mail pursuant to this subsection or 
        section 848(b) shall be deemed duly given upon mailing, whether 
        or not received by the addressee and whether or not a return 
        receipt is received or the letter is returned.
            (3) Publication.--A copy of the notice of default and 
        foreclosure sale shall be published, as provided herein, once a 
        week during three successive calendar weeks before the sale 
        date. Such publication shall be in a newspaper or newspapers 
        having general circulation in the county or counties in which 
        the security property being sold is located. To the extent 
        practicable, the newspaper or newspapers chosen shall be a 
        newspaper or newspapers, if any is available, having 
        circulation conducive to achieving notice of foreclosure by 
        publication. A legal newspaper that is accepted as a newspaper 
        of legal record in the county or counties in which the security 
        property being sold is located shall be considered a newspaper 
        having general circulation for the purposes of this paragraph. 
        Should there be no newspaper published at least weekly which 
        has a general circulation in one of the counties in which the 
        security property being sold is located, copies of the notice 
        of default and foreclosure sale shall be posted at the 
        courthouse of any county or counties in which the security 
        property is located and at the place where the sale is to be 
        held at least 21 days before the date of sale.
    Sec. 850. Presale Reinstatement.--(a) Except as provided in 
sections 848(b) and 851(c), the foreclosure commissioner shall withdraw 
the security property from foreclosure and cancel the foreclosure sale 
only if--
            (1) the Secretary so directs the commissioner prior to or 
        at the time of sale;
            (2) the commissioner finds, upon application of the 
        mortgagor at least 3 days before the date of sale, that the 
        default or defaults upon which the foreclosure is based did not 
        exist at the time of service of the notice of default and 
        foreclosure sale; or
            (3)(A) in the case of a foreclosure involving a monetary 
        default, there is tendered to the foreclosure commissioner 
        before public auction is completed the entire amount of 
        principal and interest which would be due if payments under the 
        mortgage had not been accelerated;
            (B) in the case of a foreclosure involving a nonmonetary 
        default, the foreclosure commissioner, upon application of the 
        mortgagor before the date of foreclosure sale, finds that such 
        default is cured; and
            (C) there is tendered to the foreclosure commissioner 
        before public auction is completed all amounts due under the 
        mortgage agreement (excluding additional amounts which would 
        have been due if mortgage payments had been accelerated), all 
        amounts of expenditures secured by the mortgage, and all costs 
        of foreclosure incurred for which payment from the proceeds of 
        foreclosure is provided in section 852, except that the 
        Secretary shall have discretion to refuse to cancel a 
        foreclosure pursuant to this paragraph if the current mortgagor 
        or owner of record has on one or more previous occasions caused 
        a foreclosure of the mortgage, commenced pursuant to this 
        subtitle or otherwise, to be canceled by curing a default.
    (b) Before withdrawing the security property from foreclosure in 
the circumstances described in subsection (a)(2) or (a)(3), the 
foreclosure commissioner shall afford the Secretary a reasonable 
opportunity to demonstrate why the security property should not be so 
withdrawn.
    (c) In any case in which a foreclosure commenced under this 
subtitle is canceled, the mortgage shall continue in effect as though 
acceleration had not occurred.
    (d) If the foreclosure commissioner cancels a foreclosure sale 
under this subtitle a new foreclosure may be subsequently commenced as 
provided in this subtitle.
    (e) The foreclosure commissioner shall file a notice of 
cancellation in the same place and manner provided for filing the 
notice of foreclosure sale in section 849.
    Sec. 851. Conduct of Sale; Adjournment.--(a) Foreclosure sale 
pursuant to this subtitle shall be at public auction, and shall be 
scheduled to begin between the hours of 9 o'clock ante meridiem and 4 
o'clock post meridiem local time. The foreclosure sale shall be held at 
a location specified in the notice of default and foreclosure sale, 
which shall be a location where foreclosure real estate auctions are 
customarily held in the county or one of the counties in which the 
property to be sold is located, or at a courthouse therein, or at or on 
the property to be sold. Sale of security property situated in two or 
more counties may be held in any one of the counties in which any part 
of the security property is situated. The foreclosure commissioner may 
designate the order in which multiple tracts of security are sold.
    (b) The foreclosure commissioner shall conduct the foreclosure sale 
in accordance with the provisions of this subtitle and in a manner fair 
to both the mortgagor and the Secretary. Written one-price sealed bids 
shall be accepted by the foreclosure commissioner from the Secretary 
and other persons for entry by announcement by the commissioner at the 
sale. The Secretary and any other person may bid at the foreclosure 
sale, including the Secretary or any other person who has submitted a 
written one-price bid. The foreclosure commissioner or any relative, 
related business entity, or employee of such commissioner or entity 
shall not be permitted to bid in any manner on the security property 
subject to foreclosure sale, except that the foreclosure commissioner 
or an auctioneer may be directed by the Secretary to enter a bid on the 
Secretary's behalf. The foreclosure commissioner may serve as 
auctioneer, or, in accordance with regulations of the Secretary, may 
employ an auctioneer to be paid from the commission provided for in 
section 852(5).
    (c) The foreclosure commissioner shall have discretion, prior to or 
at the time of sale to adjourn or cancel the foreclosure sale if the 
commissioner determines, in the commissioner's discretion, that 
circumstances are not conducive to a sale which is fair to the 
mortgagor and the Secretary or that additional time is necessary to 
determine whether the security property should be withdrawn from 
foreclosure as provided in section 850. The foreclosure commissioner 
may adjourn a sale to a later hour the same day by announcing or 
posting the new time and place of the foreclosure sale, or may adjourn 
the foreclosure sale for not less than 9 nor more than 31 days, in 
which case the commissioner shall serve a notice of default and 
foreclosure sale revised to recite that the foreclosure sale has been 
adjourned to a specified date and to include any corrections the 
foreclosure commissioner deems appropriate. Such notice shall be served 
by publication and mailing in accordance with section 849, except that 
publication may be made on any of 3 separate days before the revised 
date of foreclosure sale, and mailing may be made at any time at least 
7 days before the date to which the foreclosure sale has been 
adjourned.
    (d) The foreclosure commissioner may require a bidder to make a 
cash deposit in an amount or percentage set by him and stated in the 
notice of foreclosure sale before the bid is accepted. A successful 
bidder at the foreclosure sale who fails to comply with the terms of 
the sale may be required to forfeit the cash deposit or, at the 
election of the foreclosure commissioner after consultation with the 
Secretary, shall be liable to the agency incurred by the agency as a 
result of such failure.
    (e) Any foreclosure sale held in accordance with this subtitle 
shall be conclusively presumed to have been conducted in a legal, fair, 
and reasonable manner. The sale price shall be conclusively presumed to 
be reasonable and equal to the fair market value of the property.
    Sec. 852. Foreclosure Costs.--The following foreclosure costs shall 
be paid from the sale proceeds before satisfaction of any other claim 
to such sale proceeds:
            (1) Necessary advertising costs and postage incurred in 
        giving notice pursuant to sections 849 and 851.
            (2) Mileage for posting notices and for the foreclosure 
        commissioner's or auctioneer's attendance at the sale as 
        provided in section 1921 of title 28, United States Code, for 
        mileage by the most reasonable road distance.
            (3) Reasonable and necessary costs actually incurred in 
        connection with any necessary search of title and lien records.
            (4) Necessary out-of-pocket costs incurred by the 
        foreclosure commissioner to record documents.
            (5) A commission for the foreclosure commissioner other 
        than an employee of the United States for the conduct of the 
        foreclosure to the extent authorized by the Secretary.
    Sec. 853. Disposition of Sale Proceeds.--Money realized from a 
foreclosure sale shall be made available for obligation and 
expenditure--
            (1) first, to cover the costs of foreclosure provided for 
        in section 852;
            (2) then, to pay valid tax liens or assessments if required 
        by the notice of foreclosure sale;
            (3) then, to pay any liens recorded before the recording of 
        the mortgage which are required to be paid in conformity with 
        the terms of sale in the notice of foreclosure sale;
            (4) then, to service charges and advancements for taxes, 
        assessments, and property insurance premiums;
            (5) then, to the interest;
            (6) then, to the principal balance secured by the mortgage 
        (including expenditures for the necessary protection, 
        preservation, and repair of the security property as authorized 
        under the mortgage agreement and interest thereon if provided 
        for in the mortgage agreement); and
            (7) then, to late charges.
Any surplus after payment of the foregoing shall be paid to holders of 
liens recorded after the mortgage in the order of priority under 
Federal law or the law of the State where the security property is 
located and then to the appropriate mortgagor. If the person to whom 
such surplus is to be paid cannot be located, or if the surplus 
available is insufficient to pay all claimants and the claimant cannot 
agree on the allocation of the surplus, or if any person claiming an 
interest in the mortgage proceeds does not agree that some or all of 
the sale proceeds should be paid to a claimant as provided in this 
section, that part of the sale proceeds in question may be deposited by 
the foreclosure commissioner with an appropriate official or court 
authorized under law to receive disputed funds in such circumstances. 
If such a procedure for the deposit of disputed funds is not available, 
and the foreclosure commissioner files a bill of interpleader or is 
sued as a stakeholder to determine entitlement to such funds, the 
foreclosure commissioner's necessary costs in taking or defending such 
action shall be deductible from the disputed funds.
    Sec. 854. Transfer of Title and Possession.--(a) The foreclosure 
commissioner shall deliver a deed or deeds to the purchaser or 
purchasers without warranty or covenants to the purchaser or purchasers 
and obtain the balance of the purchase price in accordance with the 
terms of sale provided in the notice of default and foreclosure sale. 
Notwithstanding State law to the contrary, the commissioner's deed 
shall be a conveyance of property, and no judicial proceedings shall be 
required ancillary or supplementary to the procedures provided in this 
subtitle to assure the validity of the conveyance or confirmation of 
such conveyance.
    (b) A purchaser at a foreclosure sale held pursuant to this 
subtitle shall be entitled to possession upon passage of title to the 
mortgaged property, subject to an interest or interests not barred 
under section 856. Any person remaining in possession after the passage 
of title shall be deemed a tenant at sufferance subject to eviction 
under local law.
    (c) If a purchaser dies before execution and delivery of the deed 
conveying the property to the purchaser, the foreclosure commissioner 
shall execute and deliver the deed to the representative of the 
purchaser's estate upon payment of the purchase price in accordance 
with the terms of sale. Such delivery to the representative of the 
purchaser's estate shall have the same effect as if accomplished during 
the lifetime of the purchaser.
    (d) The purchaser of property under this subtitle shall be presumed 
to be a bona fide purchaser without notice of defects, if any, in the 
title conveyed to said purchaser if the purchaser would have been 
considered a bona fide purchaser without notice had the sale been made 
voluntarily and in person by the debtor.
    (e) There shall be no right of redemption, or right of possession 
based upon right of redemption, in the mortgagor or others subsequent 
to a foreclosure pursuant to this subtitle. Section 204(l) of the 
National Housing Act and section 701 of the Department of Housing and 
Urban Development Reform Act of 1989 shall not apply to mortgages 
foreclosed under this subtitle.
    (f) When conveyance is made to the Secretary, no tax shall be 
imposed or collected with respect to the foreclosure commissioner's 
deed, whether as a tax upon the instrument or upon the privilege of 
conveying or transferring title to the property. Failure to collect or 
pay a tax of the type and under the circumstances stated in the 
preceding sentence shall not be grounds for refusing to record such a 
deed, for failing to recognize such recordation as imparting notice, or 
for denying the enforcement of such a deed and its provisions in any 
State or Federal court.
    Sec. 855. Record of Foreclosure and Sale.--(a) To establish a 
sufficient record of foreclosure and sale, the foreclosure commissioner 
shall include in the recitals of the deed to the purchaser or prepare 
an affidavit or addendum to the deed stating--
            (1) the date, time and place of sale;
            (2) that the mortgage was held by the Secretary, the date 
        of the mortgage, the office in which the mortgage was recorded, 
        and the liber and folio or other description of the recordation 
        of the mortgage;
            (3) the particulars of the foreclosure commissioner's 
        service of notice of default and foreclosure sale in accordance 
        with sections 849 and 851;
            (4) the date and place of filing the notice of foreclosure 
        sale;
            (5) that the foreclosure was conducted in accordance with 
        the provisions of this subtitle and with the terms of the 
        notice of default and foreclosure sale; and
            (6) the sale amount.
    (b) The statements set forth in subsection (a) shall be prima facie 
evidence of the truth of such recitals and statement of facts in any 
Federal or State court; and shall be a conclusive presumption in favor 
of bona fide purchasers and encumbrancers for value without notice. 
Encumbrancers for value include liens placed by lenders who provide the 
purchaser with purchase money in exchange for a security interest in 
the newly-conveyed property.
    (c) The deed executed by the foreclosure commissioner, the 
foreclosure commissioner's affidavit and any other instruments 
submitted for recordation in relation to the foreclosure of the 
security property under this subtitle shall be accepted for recordation 
by the registrar of deeds or other appropriate official of the country 
or counties in which the security property is located upon tendering of 
payment of the usual recording fees for such instruments without regard 
to the compliance of those instruments with local filing requirements.
    Sec. 856. Effect of Sale.--A sale, made and conducted as prescribed 
in this subtitle to a bonda fide purchaser, shall be an entire bar of 
all claims upon, or with respect to, the property sold, of each of the 
following persons:
            (1) Any person to whom the notice of foreclosure sale was 
        mailed as provided in this subtitle, and the heir, devisee, 
        executor, administrator, successor of assignee claiming under 
        any such person.
            (2) Any person claiming any interest in the property 
        subordinate to that of the mortgage, if such person had actual 
        knowledge of the sale.
            (3) Each person, claiming any interest in the property, 
        whose assignment, mortgage, or other conveyance was not duly 
        recorded or filed in the proper place for recording or filing, 
        or whose judgment or decree was not duly docketed or filed in 
        the proper place for docketing or filing, prior to the date on 
        which the notice of sale was first served by publication, as 
        required by section 849(2); and the executor, administrator, or 
        assignee of such a person.
            (4) Every other person claiming under a statutory lien or 
        encumbrance created subsequent to the recording or filing of 
        the mortgage being foreclosed, attaching to the title or 
        interest of any person designated in any of the foregoing 
        subsections of this section.
    Sec. 857. Computation of Time.--Periods of time provided for in 
this subtitle shall be calculated in consecutive calendar days 
including the day or days on which the actions or events occur or are 
to occur for which the period of time is provided and including the day 
on which an event occurs or is to occur from which the period is to be 
calculated.
    Sec. 858. Separability.--If any clause, sentence, paragraph, or 
part of this subtitle shall, for any reason, be adjudged by a court of 
competent jurisdiction to be invalid or invalid as applied to a class 
of cases, such judgment shall not affect, impair, or invalidate the 
remainder thereof and of this subtitle, but shall be confined in its 
operation to the clause, sentence, paragraph, or part thereof directly 
involved in the controversy in which such judgment shall have been 
rendered.
    Sec. 859. Deficiency Judgment.--(a) In General.--If after deducting 
the disbursements provided for in section 853 of this subtitle, the 
price at which the security property is sold at a foreclosure sale is 
less than the unpaid balance of the debt secured by the security 
property, resulting in a deficiency, the Secretary may refer the matter 
to the Attorney General who may commence an action or actions against 
any or all debtors to recover the deficiency, unless specifically 
prohibited by the mortgage. The United States is also entitled to 
recover any amount authorized by section 3011 of title 28, United 
States Code, and costs of the action.
    (b) Limitation.--Any action commenced to recover the deficiency 
must be brought within 6 years of the last sale of the security 
property.

                   TITLE IX--MISCELLANEOUS AMENDMENTS

                   ofheo assessment collection dates

    Sec. 901. Section 1316(b) of the Housing and Community Development 
Act of 1992 is amended by striking out paragraph (2) and inserting in 
lieu thereof the following:
            ``(2) Timing of payment.--The annual assessment shall be 
        payable semiannually for each fiscal year, on October 1st and 
        April 1st.''.

            lead-based paint technical assistance amendments

    Sec. 902. (a) Section 1011(g) of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992 is amended--
            (1) in paragraph (1)--
                    (A) first sentence, by inserting immediately before 
                the period a comma and ``by providing technical 
                assistance, either directly, or indirectly under 
                contracts or otherwise''; and
                    (B) by striking out the second sentence; and
            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following:
            ``(2) Set-aside.--Of the total amount approved in 
        appropriation Acts under subsection (p), there shall be set 
        aside to carry out this subsection $5,000,000 for fiscal year 
        1995 and $5,000,000 for fiscal year 1996.''.
    (b) Section 1052 of such Act is amended by inserting immediately 
after ``other Federal agencies,'' the following: ``either directly, or 
indirectly under contract or otherwise,''.
    (c) Strike out section 1053 of such Act, and insert in lieu thereof 
the following:

``SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVITIES.

    ``The Secretary is authorized to use funding that may be available 
to carry out this part to undertake, either directly, or indirectly 
under contract or otherwise, pursuant to title V, Housing and Urban 
Development Act of 1970 (12 U.S.C. 1701z-1), such studies, tests 
(including but not limited to pilot tests of new or revised programs), 
evaluations, demonstrations, education of the public, and preparation 
of training materials, as are consistent with the purposes of this Act.

``SEC. 1054. AUTHORIZATION.

    ``Of the total amount approved in appropriation Acts under section 
1011(p), there shall be set aside to carry out this part $10,000,000 
for fiscal year 1995 and $10,000,000 for fiscal year 1996.''.

        lead-based paint target housing hazard reduction program

    Sec. 903. Section 1011(p) of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992 is amended to read as follows:
    ``(p) Authorization of Appropriations.--For the purposes of 
carrying out this Act, there are authorized to be appropriated 
$100,000,000 for fiscal year 1995 and $100,000,000 for fiscal year 
1996.''.

                      hud research and development

    Sec. 904. The second sentence of section 501 of the Housing and 
Urban Development Act of 1970 (12 U.S.C. 1701z-1) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
title $40,000,000 for fiscal year 1995 and $40,000,000 for fiscal year 
1996.''.

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