[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2158 Enrolled Bill (ENR)]

        H.R.2158

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
   Making appropriations for the Departments of Veterans Affairs and 
  Housing and Urban Development, and for sundry independent agencies, 
   commissions, corporations, and offices for the fiscal year ending 
               September 30, 1998, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the Departments of Veterans Affairs and Housing and 
Urban Development, and for sundry independent agencies, commissions, 
corporations, and offices for the fiscal year ending September 30, 
1998, and for other purposes, namely:

                                TITLE I

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration


                        compensation and pensions

                      (including transfers of funds)

    For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as authorized 
by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); 
pension benefits to or on behalf of veterans as authorized by law (38 
U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial 
benefits, emergency and other officers' retirement pay, adjusted-
service credits and certificates, payment of premiums due on commercial 
life insurance policies guaranteed under the provisions of Article IV 
of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, and 
for other benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 
2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 
122, 123; 45 Stat. 735; 76 Stat. 1198); $19,932,997,000, to remain 
available until expended: Provided, That not to exceed $26,380,000 of 
the amount appropriated shall be reimbursed to ``General operating 
expenses'' and ``Medical care'' for necessary expenses in implementing 
those provisions authorized in the Omnibus Budget Reconciliation Act of 
1990, and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51, 
53, and 55), the funding source for which is specifically provided as 
the ``Compensation and pensions'' appropriation: Provided further, That 
such sums as may be earned on an actual qualifying patient basis, shall 
be reimbursed to ``Medical facilities revolving fund'' to augment the 
funding of individual medical facilities for nursing home care provided 
to pensioners as authorized by the Veterans' Benefits Act of 1992 (38 
U.S.C. chapter 55).


                          readjustment benefits

    For the payment of readjustment and rehabilitation benefits to or 
on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 
34, 35, 36, 39, 51, 53, 55, and 61, $1,366,000,000, to remain available 
until expended: Provided, That funds shall be available to pay any 
court order, court award or any compromise settlement arising from 
litigation involving the vocational training program authorized by 
section 18 of Public Law 98-77, as amended.


                    veterans insurance and indemnities

    For military and naval insurance, national service life insurance, 
servicemen's indemnities, service-disabled veterans insurance, and 
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19; 
70 Stat. 887; 72 Stat. 487, $51,360,000, to remain available until 
expended.


          veterans housing benefit program fund program account

                      (including transfer of funds)

    For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by 38 U.S.C. chapter 
37, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
during fiscal year 1998, within the resources available, not to exceed 
$300,000 in gross obligations for direct loans are authorized for 
specially adapted housing loans: Provided further, That during 1998 any 
moneys that would be otherwise deposited into or paid from the Loan 
Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the Direct 
Loan Revolving Fund shall be deposited into or paid from the Veterans 
Housing Benefit Program Fund: Provided further, That any balances in 
the Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or 
the Direct Loan Revolving Fund on the effective date of this Act may be 
transferred to and merged with the Veterans Housing Benefit Program 
Fund.
    In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, $160,437,000, which may be transferred to 
and merged with the appropriation for ``General operating expenses''.


                   education loan fund program account

                      (including transfer of funds)

    For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 
3698, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $3,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $200,000, which may be transferred to and merged 
with the appropriation for ``General operating expenses''.


             vocational rehabilitation loans program account

                      (including transfer of funds)

    For the cost of direct loans, $44,000, as authorized by 38 U.S.C. 
chapter 31, as amended: Provided, That such costs, including the cost 
of modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $2,278,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $388,000, which may be transferred to and merged 
with the appropriation for ``General operating expenses''.


           Native American Veteran Housing Loan Program Account

                      (including transfer of funds)

    For administrative expenses to carry out the direct loan program 
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $515,000, 
which may be transferred to and merged with the appropriation for 
``General operating expenses''.

                     Veterans Health Administration


                               medical care

                      (including transfer of funds)

    For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities; for furnishing, 
as authorized by law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs, including care and 
treatment in facilities not under the jurisdiction of the Department; 
and furnishing recreational facilities, supplies, and equipment; 
funeral, burial, and other expenses incidental thereto for 
beneficiaries receiving care in the Department; administrative expenses 
in support of planning, design, project management, real property 
acquisition and disposition, construction and renovation of any 
facility under the jurisdiction or for the use of the Department; 
oversight, engineering and architectural activities not charged to 
project cost; repairing, altering, improving or providing facilities in 
the several hospitals and homes under the jurisdiction of the 
Department, not otherwise provided for, either by contract or by the 
hire of temporary employees and purchase of materials; uniforms or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State 
homes as authorized by 38 U.S.C. 1741; administrative and legal 
expenses of the Department for collecting and recovering amounts owed 
the Department as authorized under 38 U.S.C. chapter 17, and the 
Federal Medical Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to 
exceed $8,000,000 to fund cost comparison studies as referred to in 38 
U.S.C. 8110(a)(5); $17,057,396,000, plus reimbursements: Provided, That 
of the funds made available under this heading, $570,000,000 is for the 
equipment and land and structures object classifications only, which 
amount shall not become available for obligation until August 1, 1998, 
and shall remain available until September 30, 1999: Provided further, 
That of the amount made available under this heading, not to exceed 
$5,000,000 shall be for a study on the cost-effectiveness of 
contracting with local hospitals in east central Florida for the 
provision of non-emergent inpatient health care needs of veterans.
    In addition, in conformance with Public Law 105-33 establishing the 
Department of Veterans Affairs Medical Care Collections Fund, such sums 
as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be 
transferred to this account, to remain available until expended for the 
purposes of this account.


                     medical and prosthetic research

    For necessary expenses in carrying out programs of medical and 
prosthetic research and development as authorized by 38 U.S.C. chapter 
73, to remain available until September 30, 1999, $272,000,000, plus 
reimbursements.


       medical administration and miscellaneous operating expenses

    For necessary expenses in the administration of the medical, 
hospital, nursing home, domiciliary, construction, supply, and research 
activities, as authorized by law; administrative expenses in support of 
planning, design, project management, architectural, engineering, real 
property acquisition and disposition, construction and renovation of 
any facility under the jurisdiction or for the use of the Department of 
Veterans Affairs, including site acquisition; engineering and 
architectural activities not charged to project cost; and research and 
development in building construction technology; $59,860,000, plus 
reimbursements.

                   general post fund, national homes


                      (including transfer of funds)

    For the cost of direct loans, $7,000, as authorized by Public Law 
102-54, section 8, which shall be transferred from the ``General post 
fund'': Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize gross obligations for the principal amount of 
direct loans not to exceed $70,000.
    In addition, for administrative expenses to carry out the direct 
loan programs, $54,000, which shall be transferred from the ``General 
post fund'', as authorized by Public Law 102-54, section 8.

                      Departmental Administration


                        general operating expenses

    For necessary operating expenses of the Department of Veterans 
Affairs, not otherwise provided for, including uniforms or allowances 
therefor; not to exceed $25,000 for official reception and 
representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security guard 
services, and the Department of Defense for the cost of overseas 
employee mail; $786,135,000: Provided, That funds under this heading 
shall be available to administer the Service Members Occupational 
Conversion and Training Act: Provided further, That none of the funds 
made available under this heading may be used for the relocation of the 
loan guaranty divisions of the Department of Veterans Affairs Regional 
Office in St. Petersburg, Florida to the Department of Veterans Affairs 
Regional Office in Atlanta, Georgia.


                         national cemetery system

    For necessary expenses for the maintenance and operation of the 
National Cemetery System, not otherwise provided for, including 
uniforms or allowances therefor; cemeterial expenses as authorized by 
law; purchase of three passenger motor vehicles for use in cemeterial 
operations; and hire of passenger motor vehicles, $84,183,000.


                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$31,013,000.


                       Construction, Major Projects

    For constructing, altering, extending and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, or for any of the purposes set forth in sections 316, 
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, 
United States Code, including planning, architectural and engineering 
services, maintenance or guarantee period services costs associated 
with equipment guarantees provided under the project, services of 
claims analysts, offsite utility and storm drainage system construction 
costs, and site acquisition, where the estimated cost of a project is 
$4,000,000 or more or where funds for a project were made available in 
a previous major project appropriation, $177,900,000, to remain 
available until expended: Provided, That the $32,100,000 provided under 
this heading in Public Law 104-204 for the replacement hospital at 
Travis Air Force Base, Fairfield, California, shall not be obligated 
for that purpose but shall be available for any project approved by the 
Congress in the budgetary process: Provided further, That except for 
advance planning of projects funded through the advance planning fund 
and the design of projects funded through the design fund, none of 
these funds shall be used for any project which has not been considered 
and approved by the Congress in the budgetary process: Provided 
further, That funds provided in this appropriation for fiscal year 
1998, for each approved project shall be obligated: (1) by the awarding 
of a construction documents contract by September 30, 1998; and (2) by 
the awarding of a construction contract by September 30, 1999: Provided 
further, That the Secretary shall promptly report in writing to the 
Committees on Appropriations any approved major construction project in 
which obligations are not incurred within the time limitations 
established above: Provided further, That no funds from any other 
account except the ``Parking revolving fund'', may be obligated for 
constructing, altering, extending, or improving a project which was 
approved in the budget process and funded in this account until one 
year after substantial completion and beneficial occupancy by the 
Department of Veterans Affairs of the project or any part thereof with 
respect to that part only.


                       construction, minor projects

    For constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, including planning, architectural and engineering 
services, maintenance or guarantee period services costs associated 
with equipment guarantees provided under the project, services of 
claims analysts, offsite utility and storm drainage system construction 
costs, and site acquisition, or for any of the purposes set forth in 
sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 
of title 38, United States Code, where the estimated cost of a project 
is less than $4,000,000; $175,000,000, to remain available until 
expended, along with unobligated balances of previous ``Construction, 
minor projects'' appropriations which are hereby made available for any 
project where the estimated cost is less than $4,000,000: Provided, 
That funds in this account shall be available for: (1) repairs to any 
of the nonmedical facilities under the jurisdiction or for the use of 
the Department which are necessary because of loss or damage caused by 
any natural disaster or catastrophe; and (2) temporary measures 
necessary to prevent or to minimize further loss by such causes.


                          parking revolving fund

    For the parking revolving fund as authorized by 38 U.S.C. 8109, 
income from fees collected, to remain available until expended, which 
shall be available for all authorized expenses except operations and 
maintenance costs, which will be funded from ``Medical care''.


        grants for construction of state extended care facilities

    For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter 
existing hospital, nursing home and domiciliary facilities in State 
homes, for furnishing care to veterans as authorized by 38 U.S.C. 8131-
8137, $80,000,000, to remain available until expended.


         grants for the construction of state veteran cemeteries

    For grants to aid States in establishing, expanding, or improving 
State veteran cemeteries as authorized by 38 U.S.C. 2408, $10,000,000, 
to remain available until expended.


                        administrative provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for fiscal year 1998 for ``Compensation 
and pensions'', ``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' may be transferred to any other of the mentioned 
appropriations.
    Sec. 102. Appropriations available to the Department of Veterans 
Affairs for fiscal year 1998 for salaries and expenses shall be 
available for services authorized by 5 U.S.C. 3109.
    Sec. 103. No appropriations in this Act for the Department of 
Veterans Affairs (except the appropriations for ``Construction, major 
projects'', ``Construction, minor projects'', and the ``Parking 
revolving fund'') shall be available for the purchase of any site for 
or toward the construction of any new hospital or home.
    Sec. 104. No appropriations in this Act for the Department of 
Veterans Affairs shall be available for hospitalization or examination 
of any persons (except beneficiaries entitled under the laws bestowing 
such benefits to veterans, and persons receiving such treatment under 5 
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost 
is made to the ``Medical care'' account at such rates as may be fixed 
by the Secretary of Veterans Affairs.
    Sec. 105. Appropriations available to the Department of Veterans 
Affairs for fiscal year 1998 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and indemnities'' 
shall be available for payment of prior year accrued obligations 
required to be recorded by law against the corresponding prior year 
accounts within the last quarter of fiscal year 1997.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year 1998 shall be available to pay prior 
year obligations of corresponding prior year appropriations accounts 
resulting from title X of the Competitive Equality Banking Act, Public 
Law 100-86, except that if such obligations are from trust fund 
accounts they shall be payable from ``Compensation and pensions''.
    Sec. 107. Notwithstanding any other provision of law, during fiscal 
year 1998, the Secretary of Veterans Affairs shall, from the National 
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special 
Life Insurance Fund (38 U.S.C. 1923), and the United States Government 
Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating 
expenses'' account for the cost of administration of the insurance 
programs financed through those accounts: Provided, That reimbursement 
shall be made only from the surplus earnings accumulated in an 
insurance program in fiscal year 1998, that are available for dividends 
in that program after claims have been paid and actuarially determined 
reserves have been set aside: Provided further, That if the cost of 
administration of an insurance program exceeds the amount of surplus 
earnings accumulated in that program, reimbursement shall be made only 
to the extent of such surplus earnings: Provided further, That the 
Secretary shall determine the cost of administration for fiscal year 
1998, which is properly allocable to the provision of each insurance 
program and to the provision of any total disability income insurance 
included in such insurance program.
    Sec. 108. Section 214(l)(1)(D) of the Immigration and Nationality 
Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the 
Immigration and Nationality Technical Corrections Act of 1994 and 
redesignated as subsection (l) by section 671(a)(3)(A) of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996) is amended 
by inserting before the period at the end the following: ``, except 
that, in the case of a request by the Department of Veterans Affairs, 
the alien shall not be required to practice medicine in a geographic 
area designated by the Secretary''.
    Sec. 109. In accordance with section 1557 of title 31, United 
States Code, the following obligated balance shall be exempt from 
subchapter IV of chapter 15 of such title and shall remain available 
for expenditure without fiscal year limitation: Funds obligated by the 
Department of Veterans Affairs for lease number 757-084B-001-91 from 
funds made available in the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1993 (Public Law 102-389) under the heading ``Medical care''.

                                TITLE II

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                         housing certificate fund

                      (including transfers of funds)

    For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the disabled 
because of the loss of affordable housing stock, expiration of subsidy 
contracts (other than contracts for which amounts are provided under 
another heading in this Act) or expiration of use restrictions, or 
other changes in housing assistance arrangements, and for other 
purposes, $9,373,000,000, to remain available until expended: Provided, 
That of the total amount provided under this heading, $8,180,000,000 
shall be for assistance under the United States Housing Act of 1937 (42 
U.S.C. 1437) for use in connection with expiring or terminating section 
8 subsidy contracts, for enhanced vouchers as provided under the 
``Preserving Existing Housing Investment'' account in the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997 (Public Law 104-204), and contracts 
entered into pursuant to section 441 of the Stewart B. McKinney 
Homeless Assistance Act: Provided further, That the Secretary may 
determine not to apply section 8(o)(6)(B) of the Act to housing 
vouchers during fiscal year 1998: Provided further, That of the total 
amount provided under this heading, $850,000,000 shall be for 
amendments to section 8 contracts other than contracts for projects 
developed under section 202 of the Housing Act of 1959, as amended: 
Provided further, That of the total amount provided under this heading, 
$343,000,000 shall be for section 8 rental assistance under the United 
States Housing Act of 1937 including assistance to relocate residents 
of properties: (1) that are owned by the Secretary and being disposed 
of; or (2) that are discontinuing section 8 project-based assistance; 
for the conversion of section 23 projects to assistance under section 
8; for funds to carry out the family unification program; and for the 
relocation of witnesses in connection with efforts to combat crime in 
public and assisted housing pursuant to a request from a law 
enforcement or prosecution agency: Provided further, That of the total 
amount made available in the preceding proviso, $40,000,000 shall be 
made available to nonelderly disabled families affected by the 
designation of a public housing development under section 7 of such 
Act, the establishment of preferences in accordance with section 651 of 
the Housing and Community Development Act of 1992 (42 U.S.C. 1361l), or 
the restriction of occupancy to elderly families in accordance with 
section 658 of such Act, and to the extent the Secretary determines 
that such amount is not needed to fund applications for such affected 
families, to other nonelderly disabled families: Provided further, That 
the amount made available under the fifth proviso under the heading 
``Prevention of Resident Displacement'' in title II of the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997, Public Law 104-204, shall also be 
made available to nonelderly disabled families affected by the 
restriction of occupancy to elderly families in accordance with section 
658 of the Housing and Community Development Act of 1992: Provided 
further, That to the extent the Secretary determines that the amount 
made available under the fifth proviso under the heading ``Prevention 
of Resident Displacement'' in title II of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997, Public Law 104-204, is not needed to fund 
applications for affected families described in the fifth proviso, or 
in the preceding proviso under this heading in this Act, the amount not 
needed shall be made available to other nonelderly disabled families: 
Provided further, That all balances, as of September 30, 1997, 
remaining in the ``Annual Contributions for Assisted Housing'' account 
and the ``Prevention of Resident Displacement'' account for use in 
connection with expiring or terminating section 8 subsidy contracts and 
for amendments to section 8 contracts other than contracts for projects 
developed under section 202 of the Housing Act of 1959, as amended, 
shall be transferred to and merged with the amounts provided for those 
purposes under this heading.


                  section 8 reserve preservation account

    The amounts recaptured during fiscal year 1998 that were heretofore 
made available to public housing agencies for tenant-based assistance 
under the section 8 existing housing certificate and housing voucher 
programs from the Annual Contributions for Assisted Housing account 
shall be collected in the account under this heading, for use as 
provided for under this heading, as set forth under the Annual 
Contributions for Assisted Housing heading in chapter 11 of Public Law 
105-18, approved June 12, 1997.


                annual contributions for assisted housing

               (including rescission and transfer of funds)

    Notwithstanding any other provision of law, of the amounts 
recaptured under this heading during fiscal year 1998 and prior years, 
$550,000,000, heretofore maintained as section 8 reserves made 
available to housing agencies for tenant-based assistance under the 
section 8 existing housing certificate and housing voucher programs, 
are rescinded.
    All balances outstanding as of September 30, 1997, in the 
Preserving Existing Housing Investment Account for the Preservation 
program shall be transferred to and merged with the amounts previously 
provided for those purposes under this heading.


                       public housing capital fund

                      (including transfers of funds)

    For the Public Housing Capital Fund Program for modernization of 
existing public housing projects as authorized under section 14 of the 
United States Housing Act of 1937, as amended (42 U.S.C. 1437), 
$2,500,000,000, to remain available until expended: Provided, That of 
the total amount, $30,000,000 shall be for carrying out activities 
under section 6(j) of such Act and technical assistance for the 
inspection of public housing units, contract expertise, and training 
and technical assistance directly or indirectly, under grants, 
contracts, or cooperative agreements, to assist in the oversight and 
management of public housing (whether or not the housing is being 
modernized with assistance under this proviso) or tenant-based 
assistance, including, but not limited to, an annual resident survey, 
data collection and analysis, training and technical assistance by or 
to officials and employees of the Department and of public housing 
agencies and to residents in connection with the public housing program 
and for lease adjustments to section 23 projects: Provided further, 
That of the amount available under this heading, up to $5,000,000 shall 
be for the Tenant Opportunity Program: Provided further, That all 
balances, as of September 30, 1997, of funds heretofore provided (other 
than for Indian families) for the development or acquisition costs of 
public housing, for modernization of existing public housing projects, 
for public housing amendments, for public housing modernization and 
development technical assistance, for lease adjustments under the 
section 23 program, and for the Family Investment Centers program, 
shall be transferred to and merged with amounts made available under 
this heading.


                      public housing operating fund

                      (including transfer of funds)

    For payments to public housing agencies for operating subsidies for 
low-income housing projects as authorized by section 9 of the United 
States Housing Act of 1937, as amended (42 U.S.C. 1437g), 
$2,900,000,000, to remain available until expended: Provided, That all 
balances outstanding, as of September 30, 1997, of funds heretofore 
provided (other than for Indian families) for payments to public 
housing agencies for operating subsidies for low-income housing 
projects, shall be transferred to and merged with amounts made 
available under this heading.


              drug elimination grants for low-income housing

                      (including transfer of funds)

    For grants to public housing agencies and tribally designated 
housing entities for use in eliminating crime in public housing 
projects authorized by 42 U.S.C. 11901-11908, for grants for federally 
assisted low-income housing authorized by 42 U.S.C. 11909, and for drug 
information clearinghouse services authorized by 42 U.S.C. 11921-11925, 
$310,000,000, to remain available until expended, of which $10,000,000 
shall be for grants, technical assistance, contracts and other 
assistance, training, and program assessment and execution for or on 
behalf of public housing agencies, resident organizations, and Indian 
tribes and their tribally designated housing entities (including the 
cost of necessary travel for participants in such training); 
$10,000,000 shall be used in connection with efforts to combat violent 
crime in public and assisted housing under the Operation Safe Home 
program administered by the Inspector General of the Department of 
Housing and Urban Development; $10,000,000 shall be provided to the 
Office of Inspector General for Operation Safe Home; and $20,000,000 
shall be available for a program named the New Approach Anti-Drug 
program which will provide competitive grants to entities managing or 
operating public housing developments, federally assisted multifamily 
housing developments, or other multifamily housing developments for 
low-income families supported by non-Federal governmental entities or 
similar housing developments supported by nonprofit private sources in 
order to provide or augment security (including personnel costs), to 
assist in the investigation and/or prosecution of drug-related criminal 
activity in and around such developments, and to provide assistance for 
the development of capital improvements at such developments directly 
relating to the security of such developments: Provided, That grants 
for the New Approach Anti-Drug program shall be made on a competitive 
basis as specified in section 102 of the Department of Housing and 
Urban Development Reform Act of 1989: Provided further, That the term 
``drug-related crime'', as defined in 42 U.S.C. 11905(2), shall also 
include other types of crime as determined by the Secretary: Provided 
further, That, notwithstanding section 5130(c) of the Anti-Drug Abuse 
Act of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to 
use any such funds to provide public housing youth sports grants.


      revitalization of severely distressed public housing (hope vi)

    For grants to public housing agencies for assisting in the 
demolition of obsolete public housing projects or portions thereof, the 
revitalization (where appropriate) of sites (including remaining public 
housing units) on which such projects are located, replacement housing 
which will avoid or lessen concentrations of very low-income families, 
and tenant-based assistance in accordance with section 8 of the United 
States Housing Act of 1937; and for providing replacement housing and 
assisting tenants displaced by the demolition, $550,000,000, to remain 
available until expended, of which the Secretary may use up to 
$10,000,000 for technical assistance and contract expertise, to be 
provided directly or indirectly by grants, contracts or cooperative 
agreements, including training and cost of necessary travel for 
participants in such training, by or to officials and employees of the 
Department and of public housing agencies and to residents: Provided, 
That of the amount made available under this heading, $26,000,000 shall 
be made available, including up to $10,000,000 for Heritage House in 
Kansas City, Missouri, for the demolition of obsolete elderly public 
housing projects and the replacement, where appropriate, and 
revitalization of the elderly public housing as new communities for the 
elderly designed to meet the special needs and physical requirements of 
the elderly: Provided further, That no funds appropriated under this 
heading shall be used for any purpose that is not provided for herein, 
in the United States Housing Act of 1937, in the Appropriations Acts 
for the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies, for the fiscal years 1993, 1994, 
1995, and 1997, and the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996: Provided further, That none of such funds 
shall be used directly or indirectly by granting competitive advantage 
in awards to settle litigation or pay judgments, unless expressly 
permitted herein.


                   native american housing block grants

                      (including transfers of funds)

    For the Native American Housing Block Grants program, as authorized 
under title I of the Native American Housing Assistance and Self-
Determination Act of 1996 (Public Law 104-330), $600,000,000, to remain 
available until expended, of which $5,000,000 shall be used to support 
the inspection of Indian housing units, contract expertise, training, 
and technical assistance in the oversight and management of Indian 
housing and tenant-based assistance, including up to $200,000 for 
related travel: Provided, That of the amount provided under this 
heading, $5,000,000 shall be made available for the cost of guaranteed 
notes and other obligations, as authorized by title VI of the Native 
American Housing Assistance and Self-Determination Act of 1996: 
Provided further, That such costs, including the costs of modifying 
such notes and other obligations, shall be as defined in section 502 of 
the Congressional Budget Act of 1974, as amended: Provided further, 
That these funds are available to subsidize the total principal amount 
of any notes and other obligations, any part of which is to be 
guaranteed, not to exceed $217,000,000: Provided further, That the 
funds made available in the first proviso are for a demonstration on 
ways to enhance economic growth, to increase access to private capital, 
and to encourage the investment and participation of traditional 
financial institutions in tribal and other Native American areas: 
Provided further, That all balances outstanding as of September 30, 
1997, previously appropriated under the headings ``Annual Contributions 
for Assisted Housing'', ``Development of Additional New Subsidized 
Housing'', ``Preserving Existing Housing Investment'', ``HOME 
Investment Partnerships Program'', ``Emergency Shelter Grants 
Program'', and ``Homeless Assistance Funds'', identified for Indian 
Housing Authorities and other agencies primarily serving Indians or 
Indian areas, shall be transferred to and merged with amounts made 
available under this heading.

           indian housing loan guarantee fund program account

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (106 Stat. 3739), 
$5,000,000, to remain available until expended: Provided, That such 
costs, including the costs of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as amended: 
Provided further, That these funds are available to subsidize total 
loan principal, any part of which is to be guaranteed, not to exceed 
$73,800,000.


            CAPITAL GRANTS/CAPITAL LOANS PRESERVATION ACCOUNT

    At the discretion of the Secretary, to reimburse owners, 
nonprofits, and tenant groups for which plans of action were submitted 
with regard to eligible properties under the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the 
Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) prior to 
the effective date of this Act, but were not executed for lack of 
available funds, with such reimbursement available only for documented 
costs directly applicable to the preparation of the plan of action or 
any purchase agreement as determined by the Secretary, on terms and 
conditions to be established by the Secretary, $10,000,000 shall be 
made available.

                   Community Planning and Development


               housing opportunities for persons with aIDS

    For carrying out the Housing Opportunities for Persons with AIDS 
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 
12901), $204,000,000, to remain available until expended: Provided, 
That of the amount made available under this heading for non-formula 
allocation, the Secretary may designate, on a noncompetitive basis, one 
or more nonprofit organizations that provide meals delivered to 
homebound persons with acquired immunodeficiency syndrome or a related 
disease to receive grants, not exceeding $250,000 for any grant, and 
the Secretary shall assess the efficacy of providing such assistance to 
such persons.


                    community development block grants

                      (including transfers of funds)

    For grants to States and units of general local government and for 
related expenses, not otherwise provided for, to carry out a community 
development grants program as authorized by title I of the Housing and 
Community Development Act of 1974, as amended (the ``Act'' herein) (42 
U.S.C. 5301), $4,675,000,000, to remain available until September 30, 
2000: Provided, That $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of such Act; $2,100,000 shall be 
available as a grant to the Housing Assistance Council; $1,500,000 
shall be available as a grant to the National American Indian Housing 
Council; $32,000,000 shall be for grants pursuant to section 107 of 
such Act; $7,500,000 shall be for the Community Outreach Partnership 
program; $16,700,000 shall be for grants pursuant to section 11 of the 
Housing Opportunity Program Extension Act of 1996 (Public Law 104-120): 
Provided further, That not to exceed 20 percent of any grant made with 
funds appropriated herein (other than a grant made available under the 
preceding proviso to the Housing Assistance Council or the National 
American Indian Housing Council, or a grant using funds under section 
107(b)(3) of the Housing and Community Development Act of 1974, as 
amended) shall be expended for ``Planning and Management Development'' 
and ``Administration'' as defined in regulations promulgated by the 
Department.
    Of the amount made available under this heading, $15,000,000 shall 
be made available for ``Capacity Building for Community Development and 
Affordable Housing'', as authorized by section 4 of the HUD 
Demonstration Act of 1993 (Public Law 103-120), as in effect 
immediately before June 12, 1997, with not less than $5,000,000 of the 
funding to be used in rural areas, including tribal areas.
    Of the amount provided under this heading, the Secretary of Housing 
and Urban Development may use up to $55,000,000 for a public and 
assisted housing self-sufficiency program, of which up to $5,000,000 
may be used for the Moving to Work Demonstration, and at least 
$7,000,000 shall be used for grants for service coordinators and 
congregate services for the elderly and disabled: Provided, That for 
self-sufficiency activities, the Secretary may make grants to public 
housing agencies (including Indian tribes and their tribally designated 
housing entities), nonprofit corporations, and other appropriate 
entities for a supportive services program to assist residents of 
public and assisted housing, former residents of such housing receiving 
tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f), 
and other low-income families and individuals: Provided further, That 
the program shall provide supportive services, principally for the 
benefit of public housing residents, to the elderly and the disabled, 
and to families with children where the head of household would benefit 
from the receipt of supportive services and is working, seeking work, 
or is preparing for work by participating in job training or 
educational programs: Provided further, That the supportive services 
may include congregate services for the elderly and disabled, service 
coordinators, and coordinated education, training, and other supportive 
services, including academic skills training, job search assistance, 
assistance related to retaining employment, vocational and 
entrepreneurship development and support programs, transportation, and 
child care: Provided further, That the Secretary shall require 
applications to demonstrate firm commitments of funding or services 
from other sources: Provided further, That the Secretary shall select 
public and Indian housing agencies to receive assistance under this 
heading on a competitive basis, taking into account the quality of the 
proposed program, including any innovative approaches, the extent of 
the proposed coordination of supportive services, the extent of 
commitments of funding or services from other sources, the extent to 
which the proposed program includes reasonably achievable, quantifiable 
goals for measuring performance under the program over a three-year 
period, the extent of success an agency has had in carrying out other 
comparable initiatives, and other appropriate criteria established by 
the Secretary (except that this proviso shall not apply to renewal of 
grants for service coordinators and congregate services for the elderly 
and disabled).
    Of the amount made available under this heading, notwithstanding 
any other provision of law, $35,000,000 shall be available for 
YouthBuild program activities authorized by subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing Act, as amended, and 
such activities shall be an eligible activity with respect to any funds 
made available under this heading. Local YouthBuild programs that 
demonstrate an ability to leverage private and nonprofit funding shall 
be given a priority for YouthBuild funding.
    Of the amount made available under this heading, $25,000,000 shall 
be available for the Secretary, in consultation with the Secretary of 
Agriculture, to make grants, not to exceed $4,000,000 each, for rural 
and tribal areas, including at least one Native American area in Alaska 
and one rural area in each of the States of Iowa and Missouri, to test 
comprehensive approaches to developing a job base through economic 
development, developing affordable low- and moderate-income rental and 
homeownership housing, and increasing the investment of both private 
and nonprofit capital.
    Of the amount made available under this heading, $138,000,000 shall 
be available for the Economic Development Initiative (EDI) to finance a 
variety of efforts, including $100,000,000 for making grants for 
targeted economic investments in accordance with the terms and 
conditions specified for such grants in the conference report and the 
joint explanatory statement of the committee of conference accompanying 
this Act.
    Of the amount made available under this heading, notwithstanding 
any other provision of law, $60,000,000 shall be available for the 
lead-based paint hazard reduction program as authorized under sections 
1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 
1992.
    Of the amount made available under this heading, $25,000,000, 
including $15,000,000 for the County of San Bernardino, California, 
shall be used for neighborhood initiatives that are utilized to improve 
the conditions of distressed and blighted areas and neighborhoods, and 
to determine whether housing benefits can be integrated more 
effectively with welfare reform initiatives.
    For the cost of guaranteed loans, $29,000,000, as authorized by 
section 108 of the Housing and Community Development Act of 1974: 
Provided, That such costs, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974, as amended: Provided further, That these funds are available to 
subsidize total loan principal, any part of which is to be guaranteed, 
not to exceed $1,261,000,000, notwithstanding any aggregate limitation 
on outstanding obligations guaranteed in section 108(k) of the Housing 
and Community Development Act of 1974. In addition, for administrative 
expenses to carry out the guaranteed loan program, $1,000,000, which 
shall be transferred to and merged with the appropriation for 
departmental salaries and expenses.
    Of the $500,000,000 made available under the heading ``Community 
Development Block Grants Fund'' in the 1997 Emergency Supplemental 
Appropriations Act for Recovery from Natural Disasters, and for 
Overseas Peacekeeping Efforts, Including Those in Bosnia (Public Law 
105-18), not more than $3,500,000 shall be made available for the non-
Federal cost-share for a levee project at Devils Lake, North Dakota: 
Provided, That the Secretary of Housing and Urban Development shall 
provide the State of North Dakota with a waiver to allow the use of its 
annual Community Development Block Grant allocation for use in funding 
the non-Federal cost-share for a levee project at Devils Lake, North 
Dakota: Provided further, That notwithstanding any other provision of 
law, the Secretary is prohibited from providing waivers, other than 
those provided herein, for funds in excess of $100,000 in emergency 
Community Development Block Grants funds for the non-Federal cost-share 
of projects funded by the Secretary of the Army through the Corps of 
Engineers.

                       brownfields redevelopment

    For Economic Development Grants, as authorized by section 108(q) of 
the Housing and Community Development Act of 1974, as amended, for 
Brownfields redevelopment projects, $25,000,000, to remain available 
until expended: Provided, That the Secretary of Housing and Urban 
Development shall make these grants available on a competitive basis as 
specified in section 102 of the Department of Housing and Urban 
Development Reform Act of 1989.


               empowerment zones and enterprise communities

    For planning grants, technical assistance, contracts and other 
assistance, and training in connection with Empowerment Zones and 
Enterprise Communities, designated by the Secretary of Housing and 
Urban Development, to continue efforts to stimulate economic 
opportunity in America's distressed communities, $5,000,000, to remain 
available until expended.


                   home investment partnerships program

    For the HOME investment partnerships program, as authorized under 
title II of the Cranston-Gonzalez National Affordable Housing Act 
(Public Law 101-625), as amended, $1,500,000,000, to remain available 
until expended: Provided, That up to $7,000,000 shall be available for 
the development and operation of integrated community development 
management information systems: Provided further, That $20,000,000 
shall be available for Housing Counseling under section 106 of the 
Housing and Urban Development Act of 1968: Provided further, That up to 
$10,000,000 shall be available to carry out a demonstration program in 
which the Secretary makes grants to up to three organizations exempt 
from Federal taxation under section 501(c)(3) of the Internal Revenue 
Code, selected on a competitive basis, to demonstrate methods of 
expanding homeownership opportunities for low-income borrowers through 
expanding the secondary market for non-conforming home mortgage loans 
to low-wealth borrowers: Provided further, That grantees for such 
demonstration program shall have experience in working with lenders who 
make non-conforming loans to low-income borrowers, have experience in 
expanding the secondary market for such loans, have demonstrated 
success in carrying out such activities including raising non-Federal 
grants and capital on concessionary terms for the purpose of expanding 
the secondary market for loans in the previous two years in amounts 
equal to or exceeding the amount awarded to such organization under 
this paragraph, and have demonstrated the ability to provide data on 
the performance of such loans sufficient to allow for future analysis 
of the investment risk of such loans.


                        supportive housing program

                               (rescission)

    Of the funds made available under this heading in Public Law 102-
389 and prior laws for the Supportive Housing Demonstration Program, as 
authorized by the Stewart B. McKinney Homeless Assistance Act, 
$6,000,000 of funds recaptured during fiscal year 1998 shall be 
rescinded.


                            shelter plus care

                               (RESCISSION)

    Of the funds made available under this heading in Public Law 102-
389 and prior laws for the Shelter Plus Care program, as authorized by 
the Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds 
recaptured during fiscal year 1998 shall be rescinded.


                        homeless assistance grants

    For the emergency shelter grants program (as authorized under 
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance 
Act, as amended); the supportive housing program (as authorized under 
subtitle C of title IV of such Act); the section 8 moderate 
rehabilitation single room occupancy program (as authorized under the 
United States Housing Act of 1937, as amended) to assist homeless 
individuals pursuant to section 441 of the Stewart B. McKinney Homeless 
Assistance Act; and the shelter plus care program (as authorized under 
subtitle F of title IV of such Act), $823,000,000, to remain available 
until expended.

                            Housing Programs


                     housing for special populations

                      (including transfers of funds)

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low-
income families under the United States Housing Act of 1937, as amended 
(42 U.S.C. 1437), not otherwise provided for, $839,000,000, to remain 
available until expended: Provided, That of the total amount provided 
under this heading, $645,000,000 shall be for capital advances, 
including amendments to capital advance contracts, for housing for the 
elderly, as authorized by section 202 of the Housing Act of 1959, as 
amended, and for project rental assistance, and amendments to contracts 
for project rental assistance, for the elderly under section 202(c)(2) 
of the Housing Act of 1959, and for supportive services associated with 
the housing; and $194,000,000 shall be for capital advances, including 
amendments to capital advance contracts, for supportive housing for 
persons with disabilities, as authorized by section 811 of the 
Cranston-Gonzalez National Affordable Housing Act, for project rental 
assistance, for amendments to contracts for project rental assistance, 
and supportive services associated with the housing for persons with 
disabilities as authorized by section 811 of such Act: Provided 
further, That the Secretary may designate up to 25 percent of the 
amounts earmarked under this paragraph for section 811 of such Act for 
tenant-based assistance, as authorized under that section, including 
such authority as may be waived under the next proviso, which 
assistance is five years in duration: Provided further, That the 
Secretary may waive any provision of section 202 of the Housing Act of 
1959 and section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (including the provisions governing the terms and 
conditions of project rental assistance and tenant-based assistance) 
that the Secretary determines is not necessary to achieve the 
objectives of these programs, or that otherwise impedes the ability to 
develop, operate or administer projects assisted under these programs, 
and may make provision for alternative conditions or terms where 
appropriate: Provided further, That all balances, as of September 30, 
1997, remaining in either the ``Annual Contributions for Assisted 
Housing'' account or the ``Development of Additional New Subsidized 
Housing'' account for capital advances, including amendments to capital 
advances, for housing for the elderly, as authorized by section 202 of 
the Housing Act of 1959, as amended, and for project rental assistance, 
and amendments to contracts for project rental assistance, for 
supportive housing for the elderly, under section 202(c)(2) of such 
Act, shall be transferred to and merged with the amounts for those 
purposes under this heading; and, all balances, as of September 30, 
1997, remaining in either the ``Annual Contributions for Assisted 
Housing'' account or the ``Development of Additional New Subsidized 
Housing'' account for capital advances, including amendments to capital 
advances, for supportive housing for persons with disabilities, as 
authorized by section 811 of the Cranston-Gonzalez National Affordable 
Housing Act, and for project rental assistance, and amendments to 
contracts for project rental assistance, for supportive housing for 
persons with disabilities, as authorized under section 811 of such Act, 
shall be transferred to and merged with the amounts for those purposes 
under this heading.


                     other assisted housing programs

                        rental housing assistance

                               (Rescission)

    The limitation otherwise applicable to the maximum payments that 
may be required in any fiscal year by all contracts entered into under 
section 236 of the National Housing Act (12 U.S.C. 1715z-1) is reduced 
in fiscal year 1998 by not more than $7,350,000 in uncommitted balances 
of authorizations provided for this purpose in appropriation Acts: 
Provided, That up to $125,000,000 of recaptured budget authority shall 
be canceled.


                          Flexible Subsidy Fund

                           (transfer of funds)

    From the Rental Housing Assistance Fund, all uncommitted balances 
of excess rental charges as of September 30, 1997, and any collections 
made during fiscal year 1998, shall be transferred to the Flexible 
Subsidy Fund, as authorized by section 236(g) of the National Housing 
Act, as amended.

                     Federal Housing Administration


              fha-mutual mortgage insurance program account

                      (including transfers of funds)

    During fiscal year 1998, commitments to guarantee loans to carry 
out the purposes of section 203(b) of the National Housing Act, as 
amended, shall not exceed a loan principal of $110,000,000,000.
    During fiscal year 1998, obligations to make direct loans to carry 
out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $200,000,000: Provided, That the foregoing 
amount shall be for loans to nonprofit and governmental entities in 
connection with sales of single family real properties owned by the 
Secretary and formerly insured under the Mutual Mortgage Insurance 
Fund.
    For administrative expenses necessary to carry out the guaranteed 
and direct loan program, $338,421,000, to be derived from the FHA-
mutual mortgage insurance guaranteed loans receipt account, of which 
not to exceed $326,309,000 shall be transferred to the appropriation 
for departmental salaries and expenses; and of which not to exceed 
$12,112,000 shall be transferred to the appropriation for the Office of 
Inspector General.


               fha-general and special risk program account

                      (including transfers of funds)

    For the cost of guaranteed loans, as authorized by sections 238 and 
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), 
including the cost of loan guarantee modifications (as that term is 
defined in section 502 of the Congressional Budget Act of 1974, as 
amended), $81,000,000, to remain available until expended: Provided, 
That these funds are available to subsidize total loan principal, any 
part of which is to be guaranteed, of up to $17,400,000,000: Provided 
further, That any amounts made available in any prior appropriations 
Act for the cost (as such term is defined in section 502 of the 
Congressional Budget Act of 1974) of guaranteed loans that are 
obligations of the funds established under section 238 or 519 of the 
National Housing Act that have not been obligated or that are 
deobligated shall be available to the Secretary of Housing and Urban 
Development in connection with the making of such guarantees and shall 
remain available until expended, notwithstanding the expiration of any 
period of availability otherwise applicable to such amounts.
    Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(l), 238(a), and 519(a) of the 
National Housing Act, shall not exceed $120,000,000; of which not to 
exceed $100,000,000 shall be for bridge financing in connection with 
the sale of multifamily real properties owned by the Secretary and 
formerly insured under such Act; and of which not to exceed $20,000,000 
shall be for loans to nonprofit and governmental entities in connection 
with the sale of single-family real properties owned by the Secretary 
and formerly insured under such Act.
    In addition, for administrative expenses necessary to carry out the 
guaranteed and direct loan programs, $222,305,000, of which 
$218,134,000, including $25,000,000 for the enforcement of housing 
standards on FHA-insured multifamily projects, shall be transferred to 
the appropriation for departmental salaries and expenses; and of which 
$4,171,000 shall be transferred to the appropriation for the Office of 
Inspector General.

                Government National Mortgage Association


     guarantees of mortgage-backed securities loan guarantee program 
                                account

                      (including transfer of funds)

    During fiscal year 1998, new commitments to issue guarantees to 
carry out the purposes of section 306 of the National Housing Act, as 
amended (12 U.S.C. 1721(g)), shall not exceed $130,000,000,000.
    For administrative expenses necessary to carry out the guaranteed 
mortgage-backed securities program, $9,383,000, to be derived from the 
GNMA-guarantees of mortgage-backed securities guaranteed loan receipt 
account, of which not to exceed $9,383,000 shall be transferred to the 
appropriation for departmental salaries and expenses.

                    Policy Development and Research


                         research and technology

    For contracts, grants, and necessary expenses of programs of 
research and studies relating to housing and urban problems, not 
otherwise provided for, as authorized by title V of the Housing and 
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.), 
including carrying out the functions of the Secretary under section 
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $36,500,000, to remain 
available until September 30, 1999.
    Of the amount made available under this heading, $500,000 shall be 
made available for a contract with the National Academy of Public 
Administration to evaluate the Secretary's efforts to implement needed 
management systems and processes.

                   Fair Housing and Equal Opportunity


                         fair housing activities

    For contracts, grants, and other assistance, not otherwise provided 
for, as authorized by title VIII of the Civil Rights Act of 1968, as 
amended by the Fair Housing Amendments Act of 1988, and section 561 of 
the Housing and Community Development Act of 1987, as amended, 
$30,000,000, to remain available until September 30, 1999, of which 
$15,000,000 shall be to carry out activities pursuant to such section 
561. No funds made available under this heading shall be used to lobby 
the executive or legislative branches of the Federal Government in 
connection with a specific contract, grant or loan.

                     Management and Administration


                          salaries and expenses

                      (including transfers of funds)

    For necessary administrative and nonadministrative expenses of the 
Department of Housing and Urban Development not otherwise provided for, 
including not to exceed $7,000 for official reception and 
representation expenses, $1,000,826,000, of which $544,443,000 shall be 
provided from the various funds of the Federal Housing Administration, 
$9,383,000 shall be provided from funds of the Government National 
Mortgage Association, and $1,000,000 shall be provided from the 
``Community Development Grants Program'' account.

                      office of inspector general


                      (including transfers of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$66,850,000, of which $16,283,000 shall be provided from the various 
funds of the Federal Housing Administration and $10,000,000 shall be 
transferred from the amount earmarked for Operation Safe Home in the 
``Drug Elimination Grants for Low-Income Housing'' account.

             Office of Federal Housing Enterprise Oversight


                          salaries and expenses

                      (including transfer of funds)

    For carrying out the Federal Housing Enterprise Financial Safety 
and Soundness Act of 1992, $16,000,000, to remain available until 
expended, to be derived from the Federal Housing Enterprise Oversight 
Fund: Provided, That not to exceed such amount shall be available from 
the General Fund of the Treasury to the extent necessary to incur 
obligations and make expenditures pending the receipt of collections to 
the Fund: Provided further, That the General Fund amount shall be 
reduced as collections are received during the fiscal year so as to 
result in a final appropriation from the General Fund estimated at not 
more than $0.


                        administrative provisions

    Sec. 201. Extenders. (a) One-For-One Replacement of Public 
Housing.--Section 1002(d) of Public Law 104-19 is amended by striking 
``1997'' and inserting ``1998''.
    (b) Streamlining Section 8 Tenant-Based Assistance.-- Section 
203(d) of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996, is 
amended by striking ``fiscal years 1996 and 1997'' and inserting 
``fiscal years 1996, 1997, and 1998''.
    (c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United 
States Housing Act of 1937 is amended--
        (1) in the third sentence, by striking ``fiscal year 1997'' and 
    inserting ``fiscal years 1997 and 1998''; and
        (2) in the last sentence, by striking ``fiscal year 1997'' and 
    inserting ``fiscal years 1997 and 1998''.
    (d) Public and Assisted Housing Rents, Income Adjustments and 
Preferences.--
        (1) Section 402(a) of The Balanced Budget Downpayment Act, I is 
    amended by striking ``fiscal year 1997'' and inserting ``fiscal 
    years 1997 and 1998''.
        (2) Section 402(f) of The Balanced Budget Downpayment Act, I is 
    amended by striking ``fiscal years 1996 and 1997'' and inserting 
    ``fiscal years 1996, 1997, and 1998''.
    Sec. 202. Delay Reissuance of Vouchers and Certificates.--Section 
403(c) of The Balanced Budget Downpayment Act, I is amended--
        (1) by striking ``fiscal years 1996 and 1997'' and inserting 
    ``fiscal years 1996, 1997, and 1998'';
        (2) by striking ``1996 and October'' and inserting ``1996, 
    October''; and
        (3) by inserting before the semicolon the following: ``and 
    October 1, 1998 for assistance made available during fiscal year 
    1998''.
    Sec. 203. Waiver.--The part of the HUD 1996 Community Development 
Block Grant to the State of Illinois which is administered by the State 
of Illinois Department of Commerce and Community Affairs (grant number 
B-96-DC-170001) and which, in turn, was granted by the Illinois 
Department of Commerce and Community Affairs to the city of Oglesby, 
Illinois, located in LaSalle County, Illinois (State of Illinois 
Department of Commerce and Community Affairs grant number 96-24104), 
for the purpose of providing infrastructure for a warehouse in Oglesby, 
Illinois, is exempt from the provisions of section 104(g)(2), (g)(3), 
and (g)(4) of title I of the Housing and Community Development Act of 
1974, as amended.
    Sec. 204. Financing Adjustment Factors.--Fifty percent of the 
amounts of budget authority, or in lieu thereof 50 percent of the cash 
amounts associated with such budget authority, that are recaptured from 
projects described in section 1012(a) of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 (Public Law 100-628; 102 
Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be 
remitted to the Treasury, and such amounts of budget authority or cash 
recaptured and not rescinded or remitted to the Treasury shall be used 
by State housing finance agencies or local governments or local housing 
agencies with projects approved by the Secretary of Housing and Urban 
Development for which settlement occurred after January 1, 1992, in 
accordance with such section. Notwithstanding the previous sentence, 
the Secretary may award up to 15 percent of the budget authority or 
cash recaptured and not rescinded or remitted to the Treasury to 
provide project owners with incentives to refinance their project at a 
lower interest rate.
    Sec. 205. Annual Adjustment Factors.--Section 8(c)(2)(A) of the 
United States Housing Act of 1937, as amended by section 201 of this 
title, is further amended by inserting the following new sentences at 
the end: ``In establishing annual adjustment factors for units in new 
construction and substantial rehabilitation projects, the Secretary 
shall take into account the fact that debt service is a fixed expense. 
The immediately foregoing sentence shall be effective only during 
fiscal year 1998.''.
    Sec. 206. Community Development Block Grant.--Notwithstanding any 
other provision of law, the $7,100,000 appropriated for an industrial 
park at 18th Street and Indiana Avenue shall be made available by the 
Secretary instead to 18th and Vine for rehabilitation and 
infrastructure development associated with the ``Negro Leagues Baseball 
Museum'' and the jazz museum.
    Sec. 207. Fair Housing and Free Speech.--None of the amounts made 
available under this Act may be used during fiscal year 1998 to 
investigate or prosecute under the Fair Housing Act any otherwise 
lawful activity engaged in by one or more persons, including the filing 
or maintaining of a nonfrivolous legal action, that is engaged in 
solely for the purpose of achieving or preventing action by a 
government official or entity, or a court of competent jurisdiction.
    Sec. 208. Requirement for HUD To Maintain Public Notice and Comment 
Rulemaking.--Notwithstanding any other provision of law, for fiscal 
year 1998 and for all fiscal years thereafter, the Secretary of Housing 
and Urban Development shall maintain all current requirements under 
part 10 of the Department of Housing and Urban Development regulations 
(24 CFR part 10) with respect to the Department's policies and 
procedures for the promulgation and issuance of rules, including the 
use of public participation in the rulemaking process.
    Sec. 209. Brownfields as Eligible CDBG Activity.--During fiscal 
year 1998, States and entitlement communities may use funds allocated 
under the community development block grants program under title I of 
the Housing and Community Development Act of 1974 for environmental 
cleanup and economic development activities related to Brownfields 
projects in conjunction with the appropriate environmental regulatory 
agencies, as if such activities were eligible under section 105(a) of 
such Act.
    Sec. 210. Partial Payment of Claims on Health Care Facilities.--
Section 541(a) of the National Housing Act is amended--
        (1) in the section heading, by adding ``and health care 
    facilities'' at the end; and
        (2) in subsection (a)--
            (A) by inserting ``or a health care facility (including a 
        nursing home, intermediate care facility, or board and care 
        home (as those terms are defined in section 232 of this Act), a 
        hospital (as that term is defined in section 242 of this Act), 
        or a group practice facility (as that term is defined in 
        section 1106 of this Act))'' after ``1978''; and
            (B) by inserting ``or for keeping the health care facility 
        operational to serve community needs,'' after ``character of 
        the project,''.
    Sec. 211. Calculation of Downpayment.--Section 203(b) of the 
National Housing Act is amended by striking ``fiscal year 1997'' in 
paragraph (10)(A) and inserting ``fiscal years 1997 and 1998''.
    Sec. 212. HOPE VI NOFA.--Notwithstanding any other provision of 
law, including the July 22, 1996 Notice of Funding Availability (61 
Fed. Reg. 38024), the demolition of units at developments funded under 
the Notice of Funding Availability shall be at the option of the New 
York City Housing Authority and the assistance awarded shall be 
allocated by the public housing agency among other eligible activities 
under the HOPE VI program and without the development costs limitations 
of the Notice, provided that the public housing agency shall not exceed 
the total cost limitations for the public housing agency, as provided 
by the Department of Housing and Urban Development.
    Sec. 213. Enhanced Disposition Authority.--Section 204 of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997, is amended by inserting 
after ``owned by the Secretary'' the following: ``, including, for 
fiscal years 1997 and 1998, the provision of grants and loans from the 
General Insurance Fund (12 U.S.C. 1735c) for the necessary costs of 
rehabilitation or demolition,''.
    Sec. 214. Home Program Formula.--The first sentence of section 
217(b)(3) of the Cranston-Gonzalez National Affordable Housing Act is 
amended by striking ``only those jurisdictions that are allocated an 
amount of $500,000 or greater shall receive an allocation'' and 
inserting the following: ``jurisdictions that are allocated an amount 
of $500,000 or more, and participating jurisdictions (other than 
consortia that fail to renew the membership of all of their member 
jurisdictions) that are allocated an amount less than $500,000, shall 
receive an allocation''.
    Sec. 215. HUD Rent Reform.--Notwithstanding any other provision of 
law, the Secretary of Housing and Urban Development may provide tenant-
based assistance to eligible tenants of a project insured under either 
section 221(d)(3) or 236 of the National Housing Act in the same manner 
as if the owner had prepaid the insured mortgage to the extent 
necessary to minimize any rent increases or to prevent displacement of 
low-income tenants in accordance with a transaction approved by the 
Secretary provided that the rents are no higher than the published 
section 8 fair market rents, as of the date of enactment, during the 
tenants' occupancy of the property.
    Sec. 216. Nursing Home Lease Terms.--Section 232(b)(4)(B) of the 
National Housing Act is amended by striking ``fifty years from the date 
the mortgage was executed'' and inserting ``ten years to run beyond the 
maturity date of the mortgage''.
    Sec. 217. Housing Opportunities for Persons With AIDS Grants. (a) 
Eligibility.--Notwithstanding section 854(c)(1)(A) of the AIDS Housing 
Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts made 
available under this title for fiscal year 1998 that are allocated 
under such section, the Secretary of Housing and Urban Development 
shall allocate and make a grant, in the amount determined under 
subsection (b), for any State that--
        (1) received an allocation for fiscal year 1997 under clause 
    (ii) of such section;
        (2) is not otherwise eligible for an allocation for fiscal year 
    1998 under such clause (ii) because the State does not have the 
    number of cases of acquired immunodeficiency syndrome required 
    under such clause; and
        (3) would meet such requirement if the cases in the 
    metropolitan statistical area for any city within the State, which 
    city was not eligible for an allocation for fiscal year 1997 under 
    clause (i) of such section but is eligible for an allocation for 
    fiscal year 1998 under such clause, were considered to be cases 
    outside of metropolitan statistical areas described in clause (i) 
    of such section.
    (b) Amount.--The amount of the allocation and grant for any State 
described in subsection (a) shall be the amount that is equal to the 
lesser of--
        (1) the difference between--
            (A) the total amount allocated for such State under section 
        854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal 
        year 1997; and
            (B) the total amount allocated for the city described in 
        subsection (a)(3) of this section under section 854(c)(1)(A)(i) 
        of such Act for fiscal year 1998 (from amounts made available 
        under this title); and
        (2) $300,000.
    Sec. 218. Debt Forgiveness.--The Secretary of Housing and Urban 
Development shall cancel the indebtedness of the Village of Robbins, 
Illinois, relating to loans under the Reconstruction Finance 
Corporation and refinanced under the Public Facility Loan program (loan 
numbers ILL-11-RFC-0029 and ILL-11-PFL0111). The Village is hereby 
relieved of all liability to the Federal Government for the outstanding 
principal balance on such loans, for the amount of accrued interest on 
such loans, and for any fees and charges payable in connection with 
such loans.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                          salaries and expenses

    For necessary expenses, not otherwise provided for, of the American 
Battle Monuments Commission, including the acquisition of land or 
interest in land in foreign countries; purchases and repair of uniforms 
for caretakers of national cemeteries and monuments outside of the 
United States and its territories and possessions; rent of office and 
garage space in foreign countries; purchase (one for replacement only) 
and hire of passenger motor vehicles; and insurance of official motor 
vehicles in foreign countries, when required by law of such countries; 
$26,897,000, to remain available until expended: Provided, That where 
station allowance has been authorized by the Department of the Army for 
officers of the Army serving the Army at certain foreign stations, the 
same allowance shall be authorized for officers of the Armed Forces 
assigned to the Commission while serving at the same foreign stations, 
and this appropriation is hereby made available for the payment of such 
allowance: Provided further, That when traveling on business of the 
Commission, officers of the Armed Forces serving as members or as 
Secretary of the Commission may be reimbursed for expenses as provided 
for civilian members of the Commission: Provided further, That the 
Commission shall reimburse other Government agencies, including the 
Armed Forces, for salary, pay, and allowances of personnel assigned to 
it.

             Chemical Safety and Hazard Investigation Board


                          Salaries and Expenses

    For necessary expenses in carrying out activities pursuant to 
section 112(r)(6) of the Clean Air Act, including hire of passenger 
vehicles, and for services authorized by 5 U.S.C. 3109, but at rates 
for individuals not to exceed the per diem equivalent to the maximum 
rate payable for senior level positions under 5 U.S.C. 5376, 
$4,000,000.

                       Department of the Treasury

              Community Development Financial Institutions


    community development financial institutions fund program account

    For grants, loans, and technical assistance to qualifying community 
development lenders, and administrative expenses of the Fund, including 
services authorized by 5 U.S.C. 3109, but at rates for individuals not 
to exceed the per diem rate equivalent to the rate for ES-3, 
$80,000,000, to remain available until September 30, 1999, of which 
$12,000,000 may be used for the cost of direct loans, and up to 
$1,000,000 may be used for administrative expenses to carry out the 
direct loan program: Provided, That the cost of direct loans, including 
the cost of modifying such loans, shall be as defined in section 502 of 
the Congressional Budget Act of 1974: Provided further, That these 
funds are available to subsidize gross obligations for the principal 
amount of direct loans not to exceed $32,000,000: Provided further, 
That not more than $25,000,000 of the funds made available under this 
heading may be used for programs and activities authorized in section 
114 of the Community Development Banking and Financial Institutions Act 
of 1994.

                   Consumer Product Safety Commission


                          salaries and expenses

    For necessary expenses of the Consumer Product Safety Commission, 
including hire of passenger motor vehicles, services as authorized by 5 
U.S.C. 3109, but at rates for individuals not to exceed the per diem 
rate equivalent to the maximum rate payable under 5 U.S.C. 5376, 
purchase of nominal awards to recognize non-Federal officials' 
contributions to Commission activities, and not to exceed $500 for 
official reception and representation expenses, $45,000,000.

             Corporation for National and Community Service


        national and community service programs operating expenses

                      (including transfer of funds)

    For necessary expenses for the Corporation for National and 
Community Service (referred to in the matter under this heading as the 
``Corporation'') in carrying out programs, activities, and initiatives 
under the National and Community Service Act of 1990 (referred to in 
the matter under this heading as the ``Act'') (42 U.S.C. 12501 et 
seq.), $425,500,000, to remain available until September 30, 1999: 
Provided, That not more than $27,000,000 shall be available for 
administrative expenses authorized under section 501(a)(4) of the Act 
(42 U.S.C. 12671(a)(4)): Provided further, That not more than $2,500 
shall be for official reception and representation expenses: Provided 
further, That not more than $70,000,000, to remain available without 
fiscal year limitation, shall be transferred to the National Service 
Trust account for educational awards authorized under subtitle D of 
title I of the Act (42 U.S.C. 12601 et seq.), of which not to exceed 
$5,000,000 shall be available for national service scholarships for 
high school students performing community service: Provided further, 
That not more than $227,000,000 of the amount provided under this 
heading shall be available for grants under the National Service Trust 
program authorized under subtitle C of title I of the Act (42 U.S.C. 
12571 et seq.) (relating to activities including the Americorps 
program), of which not more than $40,000,000 may be used to administer, 
reimburse, or support any national service program authorized under 
section 121(d)(2) of such Act (42 U.S.C. 12581(d)(2)): Provided 
further, That not more than $5,500,000 of the funds made available 
under this heading shall be made available for the Points of Light 
Foundation for activities authorized under title III of the Act (42 
U.S.C. 12661 et seq.): Provided further, That no funds shall be 
available for national service programs run by Federal agencies 
authorized under section 121(b) of such Act (42 U.S.C. 12571(b)): 
Provided further, That to the maximum extent feasible, funds 
appropriated under subtitle C of title I of the Act shall be provided 
in a manner that is consistent with the recommendations of peer review 
panels in order to ensure that priority is given to programs that 
demonstrate quality, innovation, replicability, and sustainability: 
Provided further, That not more than $18,000,000 of the funds made 
available under this heading shall be available for the Civilian 
Community Corps authorized under subtitle E of title I of the Act (42 
U.S.C. 12611 et seq.): Provided further, That not more than $43,000,000 
shall be available for school-based and community-based service-
learning programs authorized under subtitle B of title I of the Act (42 
U.S.C. 12521 et seq.): Provided further, That not more than $30,000,000 
shall be available for quality and innovation activities authorized 
under subtitle H of title I of the Act (42 U.S.C. 12853 et seq.): 
Provided further, That not more than $5,000,000 shall be available for 
audits and other evaluations authorized under section 179 of the Act 
(42 U.S.C. 12639): Provided further, That to the maximum extent 
practicable, the Corporation shall increase significantly the level of 
matching funds and in-kind contributions provided by the private 
sector, shall expand significantly the number of educational awards 
provided under subtitle D of title I, and shall reduce the total 
Federal costs per participant in all programs.


                       Office of Inspector General

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $3,000,000.

                       Court of Veterans Appeals


                          Salaries and Expenses

    For necessary expenses for the operation of the United States Court 
of Veterans Appeals as authorized by 38 U.S.C. 7251-7298, $9,319,000, 
of which $790,000, shall be available for the purpose of providing 
financial assistance as described, and in accordance with the process 
and reporting procedures set forth, under this heading in Public Law 
102-229.

                      Department of Defense--Civil

                       Cemeterial Expenses, Army


                          Salaries and Expenses

    For necessary expenses, as authorized by law, for maintenance, 
operation, and improvement of Arlington National Cemetery and Soldiers' 
and Airmen's Home National Cemetery, including the purchase of two 
passenger motor vehicles for replacement only, and not to exceed $1,000 
for official reception and representation expenses, $11,815,000, to 
remain available until expended.

                    Environmental Protection Agency


                          Science and Technology

                      (including transfer of funds)

    For science and technology, including research and development 
activities, which shall include research and development activities 
under the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA), as amended; necessary expenses for 
personnel and related costs and travel expenses, including uniforms, or 
allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as 
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed 
the per diem rate equivalent to the rate for GS-18; procurement of 
laboratory equipment and supplies; other operating expenses in support 
of research and development; construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 per 
project, $631,000,000, which shall remain available until September 30, 
1999: Provided, That $49,600,000 of the funds appropriated under this 
heading shall be to conduct and administer a comprehensive, peer-
reviewed, near- and long-term particulate matter research program in 
accordance with the terms and conditions set forth for such research 
program in the conference report and joint explanatory statement of the 
committee of conference accompanying this Act (H.R. 2158): Provided 
further, That no later than 30 days following enactment of this Act, 
the Environmental Protection Agency shall enter into a contract or 
cooperative agreement with the National Academy of Sciences to develop 
a comprehensive, prioritized, near- and long-term particulate matter 
research program and monitoring plan in accordance with the terms and 
conditions set forth in the conference report and joint explanatory 
statement of the committee of conference accompanying this Act (H.R. 
2158).


                  environmental programs and management

    For environmental programs and management, including necessary 
expenses, not otherwise provided for, for personnel and related costs 
and travel expenses, including uniforms, or allowances therefore, as 
authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 
3109, but at rates for individuals not to exceed the per diem rate 
equivalent to the rate for GS-18; hire of passenger motor vehicles; 
hire, maintenance, and operation of aircraft; purchase of reprints; 
library memberships in societies or associations which issue 
publications to members only or at a price to members lower than to 
subscribers who are not members; construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 per 
project; and not to exceed $6,000 for official reception and 
representation expenses, $1,801,000,000, which shall remain available 
until September 30, 1999.


                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, and for construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project, 
$28,501,000, to remain available until September 30, 1999.


                         buildings and facilities

    For construction, repair, improvement, extension, alteration, and 
purchase of fixed equipment or facilities of, or for use by, the 
Environmental Protection Agency, $109,420,000, to remain available 
until expended: Provided, That the Environmental Protection Agency is 
authorized to establish and construct a consolidated research facility 
at Research Triangle Park, North Carolina, at a maximum total 
construction cost of $272,700,000, and to obligate such monies as are 
made available by this Act for this purpose.


                      hazardous substance superfund

                      (including transfer of funds)

    For necessary expenses to carry out the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (CERCLA), as amended, 
including sections 111(c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C. 
9611), and for construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project; not to 
exceed $2,150,000,000 (of which $100,000,000 shall not become available 
until September 1, 1998), to remain available until expended, 
consisting of $1,900,000,000, as authorized by section 517(a) of the 
Superfund Amendments and Reauthorization Act of 1986 (SARA), as amended 
by Public Law 101-508, and $250,000,000 as a payment from general 
revenues to the Hazardous Substance Superfund as authorized by section 
517(b) of SARA, as amended by Public Law 101-508: Provided, That funds 
appropriated under this heading may be allocated to other Federal 
agencies in accordance with section 111(a) of CERCLA: Provided further, 
That of the funds appropriated under this heading, $650,000,000 shall 
not become available for obligation until October 1, 1998, and, 
further, shall be available for obligation only upon enactment by May 
15, 1998, of specific legislation which reauthorizes the Superfund 
program: Provided further, That $11,641,000 of the funds appropriated 
under this heading shall be transferred to the ``Office of Inspector 
General'' appropriation to remain available until September 30, 1999: 
Provided further, That notwithstanding section 111(m) of CERCLA or any 
other provision of law, $74,000,000 of the funds appropriated under 
this heading shall be available to the Agency for Toxic Substances and 
Disease Registry to carry out activities described in sections 104(i), 
111(c)(4), and 111(c)(14) of CERCLA and section 118(f) of SARA: 
Provided further, That $35,000,000 of the funds appropriated under this 
heading shall be transferred to the ``Science and Technology'' 
appropriation to remain available until September 30, 1999: Provided 
further, That none of the funds appropriated under this heading shall 
be used for Brownfields revolving loan funds unless specifically 
authorized by subsequent legislation: Provided further, That none of 
the funds appropriated under this heading shall be available for the 
Agency for Toxic Substances and Disease Registry to issue in excess of 
40 toxicological profiles pursuant to section 104(i) of CERCLA during 
fiscal year 1998.

                leaking underground storage tank program

                     (including transfer of funds)

    For necessary expenses to carry out leaking underground storage 
tank cleanup activities authorized by section 205 of the Superfund 
Amendments and Reauthorization Act of 1986, and for construction, 
alteration, repair, rehabilitation, and renovation of facilities, not 
to exceed $75,000 per project, $65,000,000, to remain available until 
expended: Provided, That no more than $7,500,000 shall be available for 
administrative expenses.


                            oil spill response

                      (including transfer of funds)

    For expenses necessary to carry out the Environmental Protection 
Agency's responsibilities under the Oil Pollution Act of 1990, 
$15,000,000, to be derived from the Oil Spill Liability trust fund, and 
to remain available until expended: Provided, That not more than 
$9,000,000 of these funds shall be available for administrative 
expenses.


                    state and tribal assistance grants

    For environmental programs and infrastructure assistance, including 
capitalization grants for State revolving funds and performance 
partnership grants, $3,213,125,000, to remain available until expended, 
of which $1,350,000,000 shall be for making capitalization grants for 
the Clean Water State Revolving Funds under title VI of the Federal 
Water Pollution Control Act, as amended, and $725,000,000 shall be for 
capitalization grants for the Drinking Water State Revolving Funds 
under section 1452 of the Safe Drinking Water Act, as amended; 
$75,000,000 for architectural, engineering, planning, design, 
construction and related activities in connection with the construction 
of high priority water and wastewater facilities in the area of the 
United States-Mexico border, after consultation with the appropriate 
border commission; $50,000,000 for grants to the State of Texas which 
shall be matched by State funds from State resources at 20 percent of 
the Federal appropriation for the purpose of improving water and 
wastewater treatment for colonias; $15,000,000 for grants to the State 
of Alaska to address drinking water and wastewater infrastructure needs 
of rural and Alaska Native Villages as provided by section 303 of 
Public Law 104-182; $253,125,000 for making grants for the construction 
of wastewater and water treatment facilities and groundwater protection 
infrastructure in accordance with the terms and conditions specified 
for such grants in the conference report and joint explanatory 
statement of the committee of conference accompanying this Act (H.R. 
2158); and $745,000,000 for grants to States, federally recognized 
tribes, and air pollution control agencies for multi-media or single 
media pollution prevention, control and abatement and related 
activities pursuant to the provisions set forth under this heading in 
Public Law 104-134, provided that eligible recipients of these funds 
and the funds made available for this purpose since fiscal year 1996 
and hereafter include States, federally recognized tribes, interstate 
agencies, tribal consortia, and air pollution control agencies, as 
provided in authorizing statutes, subject to such terms and conditions 
as the Administrator shall establish, and for making grants under 
section 103 of the Clean Air Act for particulate matter monitoring and 
data collection activities: Provided, That, consistent with section 
1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j-12(g)), section 
302 of the Safe Drinking Water Act Amendments of 1996 (Public Law 104-
182) and the accompanying joint explanatory statement of the committee 
on conference (H. Rept. No. 104-741 to accompany S. 1316, the Safe 
Drinking Water Act Amendments of 1996), and notwithstanding any other 
provision of law, States may combine the assets of State Revolving 
Funds (SRFs) established under section 1452 of the Safe Drinking Water 
Act, as amended, and title VI of the Federal Water Pollution Control 
Act, as amended, as security for bond issues to enhance the lending 
capacity of one or both SRFs, but not to acquire the State match for 
either program, provided that revenues from the bonds are allocated to 
the purposes of the Safe Drinking Water Act and the Federal Water 
Pollution Control Act in the same portion as the funds are used as 
security for the bonds: Provided further, That, hereafter from funds 
appropriated under this heading, the Administrator is authorized to 
make grants to federally recognized Indian governments for the 
development of multi-media environmental programs: Provided further, 
That, hereafter, the funds available under this heading for grants to 
States, federally recognized tribes, and air pollution control agencies 
for multi-media or single media pollution prevention, control and 
abatement and related activities may also be used for the direct 
implementation by the Federal Government of a program required by law 
in the absence of an acceptable State or tribal program: Provided 
further, That notwithstanding any other provision of law, in the case 
of a publicly owned treatment works in the District of Columbia, the 
Federal share of grants awarded under title II of the Federal Water 
Pollution Control Act, beginning October 1, 1997, and continuing 
through September 30, 1999, shall be 80 percent of the cost of 
construction, and all grants made to such publicly owned treatment 
works in the District of Columbia may include an advance of allowance 
under section 201(l)(2): Provided further, That, notwithstanding any 
other provision of law, the Administrator is authorized to make a grant 
of $4,326,000 under title II of the Federal Water Pollution Control 
Act, as amended, from funds appropriated in prior years under section 
205 of the Act for the State of Florida and available due to 
deobligation, to the appropriate instrumentality for wastewater 
treatment works in Monroe County, Florida.


                           working capital fund

    Under this heading in Public Law 104-204, delete the following: the 
phrases ``franchise fund pilot to be known as the''; ``as authorized by 
section 403 of Public Law 103-356,''; and ``as provided in such 
section''; and the final proviso. After the phrase ``to be available'', 
insert ``without fiscal year limitation''.

                   Executive Office of the President


                 office of science and technology policy

    For necessary expenses of the Office of Science and Technology 
Policy, in carrying out the purposes of the National Science and 
Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
6601 and 6671), hire of passenger motor vehicles, and services as 
authorized by 5 U.S.C. 3109, not to exceed $2,500 for official 
reception and representation expenses, and rental of conference rooms 
in the District of Columbia, $4,932,000.


   council on environmental quality and office of environmental quality

    For necessary expenses to continue functions assigned to the 
Council on Environmental Quality and Office of Environmental Quality 
pursuant to the National Environmental Policy Act of 1969, the 
Environmental Quality Improvement Act of 1970, and Reorganization Plan 
No. 1 of 1977, $2,500,000: Provided, That, notwithstanding any other 
provision of law, no funds other than those appropriated under this 
heading shall be used for or by the Council on Environmental Quality 
and Office of Environmental Quality: Provided further, That 
notwithstanding section 202 of the National Environmental Policy Act of 
1970, the Council shall consist of one member, appointed by the 
President, by and with the advice and consent of the Senate, serving as 
chairman and exercising all powers, functions, and duties of the 
Council.

                          unanticipated needs

    For expenses necessary to enable the President to meet 
unanticipated needs, in furtherance of the national interest, security, 
or defense which may arise at home or abroad during the current fiscal 
year, $1,000,000.

                 Federal Deposit Insurance Corporation


                       office of inspector general

                      (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $34,365,000, to be derived from the Bank Insurance Fund, the 
Savings Association Insurance Fund, and the FSLIC Resolution Fund.

                  Federal Emergency Management Agency


                             disaster relief

    For necessary expenses in carrying out the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
$320,000,000, and, notwithstanding 42 U.S.C. 5203, to remain available 
until expended.


             disaster assistance direct loan program account

    For the cost of direct loans, $1,495,000, as authorized by section 
319 of the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize gross obligations for the principal amount of 
direct loans not to exceed $25,000,000.
    In addition, for administrative expenses to carry out the direct 
loan program, $341,000.


                          salaries and expenses

    For necessary expenses, not otherwise provided for, including hire 
and purchase of motor vehicles as authorized by 31 U.S.C. 1343; 
uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901-5902; 
services as authorized by 5 U.S.C. 3109, but at rates for individuals 
not to exceed the per diem rate equivalent to the rate for GS-18; 
expenses of attendance of cooperating officials and individuals at 
meetings concerned with the work of emergency preparedness; 
transportation in connection with the continuity of Government programs 
to the same extent and in the same manner as permitted the Secretary of 
a Military Department under 10 U.S.C. 2632; and not to exceed $2,500 
for official reception and representation expenses, $171,773,000.


                       Office of Inspector General

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $4,803,000.


               emergency management planning and assistance

    For necessary expenses, not otherwise provided for, to carry out 
activities under the National Flood Insurance Act of 1968, as amended, 
and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 
4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards 
Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal 
Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et 
seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App. 
2061 et seq.), sections 107 and 303 of the National Security Act of 
1947, as amended (50 U.S.C. 404-405), and Reorganization Plan No. 3 of 
1978, $243,546,000: Provided, That for purposes of pre-disaster 
mitigation pursuant to 42 U.S.C. 5131(b) and (c) and 42 U.S.C. 5196(e) 
and (i), $30,000,000 of the funds made available under this heading 
shall be available until expended for project grants: Provided further, 
That the Director of the Federal Emergency Management Agency shall make 
a grant for $1,500,000 to resolve issues under the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, Public 
Law 91-646, involving the City of Jackson, Mississippi.


                    emergency food and shelter program

    To carry out an emergency food and shelter program pursuant to 
title III of Public Law 100-77, as amended, $100,000,000: Provided, 
That total administrative costs shall not exceed three and one-half 
percent of the total appropriation.


                      national flood insurance fund

                      (including transfer of funds)

    For activities under the National Flood Insurance Act of 1968, the 
Flood Disaster Protection Act of 1973, and the National Flood Insurance 
Reform Act of 1994, not to exceed $21,610,000 for salaries and expenses 
associated with flood mitigation and flood insurance operations, and 
not to exceed $78,464,000 for flood mitigation, including up to 
$20,000,000 for expenses under section 1366 of the National Flood 
Insurance Act, which amount shall be available for transfer to the 
National Flood Mitigation Fund until September 30, 1999. In fiscal year 
1998, no funds in excess of: (1) $47,000,000 for operating expenses; 
(2) $375,165,000 for agents' commissions and taxes; and (3) $50,000,000 
for interest on Treasury borrowings shall be available from the 
National Flood Insurance Fund without prior notice to the Committees on 
Appropriations. For fiscal year 1998, flood insurance rates shall not 
exceed the level authorized by the National Flood Insurance Reform Act 
of 1994.
    Section 1309(a)(2) of the National Flood Insurance Act (42 U.S.C. 
4016(a)(2)), as amended by Public Law 104-208, is further amended by 
striking ``1997'' and inserting ``1998''.
    Section 1319 of the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4026), is amended by striking ``October 23, 1997'' 
and inserting ``September 30, 1998''.
    Section 1336 of the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4056), is amended by striking ``October 23, 1997'' 
and inserting ``September 30, 1998''.
    The first sentence of section 1376(c) of the National Flood 
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is amended by 
striking all after ``to be appropriated'' and inserting ``such sums as 
may be necessary through September 30, 1998, for studies under this 
title.''.


                         administrative provision

    The Director of the Federal Emergency Management Agency shall 
promulgate through rulemaking a methodology for assessment and 
collection of fees to be assessed and collected beginning in fiscal 
year 1998 applicable to persons subject to the Federal Emergency 
Management Agency's radiological emergency preparedness regulations. 
The aggregate charges assessed pursuant to this section during fiscal 
year 1998 shall approximate, but not be less than, 100 percent of the 
amounts anticipated by the Federal Emergency Management Agency to be 
obligated for its radiological emergency preparedness program for such 
fiscal year. The methodology for assessment and collection of fees 
shall be fair and equitable, and shall reflect the full amount of costs 
of providing radiological emergency planning, preparedness, response 
and associated services. Such fees shall be assessed in a manner that 
reflects the use of agency resources for classes of regulated persons 
and the administrative costs of collecting such fees. Fees received 
pursuant to this section shall be deposited in the general fund of the 
Treasury as offsetting receipts. Assessment and collection of such fees 
are only authorized during fiscal year 1998.

                    General Services Administration


                     consumer information center fund

    For necessary expenses of the Consumer Information Center, 
including services authorized by 5 U.S.C. 3109, $2,419,000, to be 
deposited into the Consumer Information Center Fund: Provided, That the 
appropriations, revenues and collections deposited into the fund shall 
be available for necessary expenses of Consumer Information Center 
activities in the aggregate amount of $7,500,000. Appropriations, 
revenues, and collections accruing to this fund during fiscal year 1998 
in excess of $7,500,000 shall remain in the fund and shall not be 
available for expenditure except as authorized in appropriations Acts: 
Provided further, That notwithstanding any other provision of law, the 
Consumer Information Center may accept and deposit to this account, 
during fiscal year 1998 and hereafter, gifts for the purpose of 
defraying its costs of printing, publishing, and distributing consumer 
information and educational materials and undertaking other consumer 
information activities; may expend those gifts for those purposes, in 
addition to amounts appropriated or otherwise made available; and the 
balance shall remain available for expenditure for such purpose.

             National Aeronautics and Space Administration


                            human space flight

    For necessary expenses, not otherwise provided for, in the conduct 
and support of human space flight research and development activities, 
including research, development, operations, and services; maintenance; 
construction of facilities including repair, rehabilitation, and 
modification of real and personal property, and acquisition or 
condemnation of real property, as authorized by law; space flight, 
spacecraft control and communications activities including operations, 
production, and services; and purchase, lease, charter, maintenance and 
operation of mission and administrative aircraft, $5,506,500,000, to 
remain available until September 30, 1999: Provided, That of the 
$2,351,300,000 made available under this heading for Space Station 
activities, only $1,500,000,000 shall be available before March 31, 
1998.


                   science, aeronautics and technology

    For necessary expenses, not otherwise provided for, in the conduct 
and support of science, aeronautics and technology research and 
development activities, including research, development, operations, 
and services; maintenance; construction of facilities including repair, 
rehabilitation, and modification of real and personal property, and 
acquisition or condemnation of real property, as authorized by law; 
space flight, spacecraft control and communications activities 
including operations, production, and services; and purchase, lease, 
charter, maintenance and operation of mission and administrative 
aircraft, $5,690,000,000, to remain available until September 30, 1999.


                             mission support

    For necessary expenses, not otherwise provided for, in carrying out 
mission support for human space flight programs and science, 
aeronautical, and technology programs, including research operations 
and support; space communications activities including operations, 
production and services; maintenance; construction of facilities 
including repair, rehabilitation, and modification of facilities, minor 
construction of new facilities and additions to existing facilities, 
facility planning and design, environmental compliance and restoration, 
and acquisition or condemnation of real property, as authorized by law; 
program management; personnel and related costs, including uniforms or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; travel 
expenses; purchase, lease, charter, maintenance, and operation of 
mission and administrative aircraft; not to exceed $35,000 for official 
reception and representation expenses; and purchase (not to exceed 33 
for replacement only) and hire of passenger motor vehicles; 
$2,433,200,000, to remain available until September 30, 1999.


                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$18,300,000.


                        administrative provisions

    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics and 
technology'', or ``Mission support'' by this appropriations Act, when 
any activity has been initiated by the incurrence of obligations for 
construction of facilities as authorized by law, such amount available 
for such activity shall remain available until expended. This provision 
does not apply to the amounts appropriated in ``Mission support'' 
pursuant to the authorization for repair, rehabilitation and 
modification of facilities, minor construction of new facilities and 
additions to existing facilities, and facility planning and design.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics and 
technology'', or ``Mission support'' by this appropriations Act, the 
amounts appropriated for construction of facilities shall remain 
available until September 30, 2000.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Mission support'' and ``Office of Inspector 
General'', amounts made available by this Act for personnel and related 
costs and travel expenses of the National Aeronautics and Space 
Administration shall remain available until September 30, 1998 and may 
be used to enter into contracts for training, investigations, costs 
associated with personnel relocation, and for other services, to be 
provided during the next fiscal year.
    Of the funds provided to the National Aeronautics and Space 
Administration in this Act, the Administrator shall by November 1, 
1998, make available no less than $400,000 for a study by the National 
Research Council, with an interim report to be completed by June 1, 
1998, that evaluates, in terms of the potential impact on the Space 
Station's assembly schedule, budget, and capabilities, the engineering 
challenges posed by extravehicular activity (EVA) requirements, United 
States and non-United States space launch requirements, the potential 
need to upgrade or replace equipment and components after assembly 
complete, and the requirement to decommission and disassemble the 
facility.

                  National Credit Union Administration


                        central liquidity facility

    During fiscal year 1998, gross obligations of the Central Liquidity 
Facility for the principal amount of new direct loans to member credit 
unions, as authorized by the National Credit Union Central Liquidity 
Facility Act (12 U.S.C. 1795), shall not exceed $600,000,000: Provided, 
That administrative expenses of the Central Liquidity Facility in 
fiscal year 1998 shall not exceed $203,000: Provided further, That 
$1,000,000, together with amounts of principal and interest on loans 
repaid, to be available until expended, is available for loans to 
community development credit unions.

                      National Science Foundation


                     research and related activities

    For necessary expenses in carrying out the National Science 
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and the Act 
to establish a National Medal of Science (42 U.S.C. 1880-1881); 
services as authorized by 5 U.S.C. 3109; maintenance and operation of 
aircraft and purchase of flight services for research support; 
acquisition of aircraft; $2,545,700,000, of which not to exceed 
$228,530,000 shall remain available until expended for Polar research 
and operations support, and for reimbursement to other Federal agencies 
for operational and science support and logistical and other related 
activities for the United States Antarctic program; the balance to 
remain available until September 30, 1999: Provided, That receipts for 
scientific support services and materials furnished by the National 
Research Centers and other National Science Foundation supported 
research facilities may be credited to this appropriation: Provided 
further, That to the extent that the amount appropriated is less than 
the total amount authorized to be appropriated for included program 
activities, all amounts, including floors and ceilings, specified in 
the authorizing Act for those program activities or their subactivities 
shall be reduced proportionally: Provided further, That $40,000,000 of 
the funds available under this heading shall be made available for a 
comprehensive research initiative on plant genomes for economically 
significant crops.


                         major research equipment

    For necessary expenses of major construction projects pursuant to 
the National Science Foundation Act of 1950, as amended, $109,000,000, 
to remain available until expended, of which $35,000,000 shall become 
available on September 30, 1998.


                      education and human resources

    For necessary expenses in carrying out science and engineering 
education and human resources programs and activities pursuant to the 
National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-
1875), including services as authorized by 5 U.S.C. 3109 and rental of 
conference rooms in the District of Columbia, $632,500,000, to remain 
available until September 30, 1999: Provided, That to the extent that 
the amount of this appropriation is less than the total amount 
authorized to be appropriated for included program activities, all 
amounts, including floors and ceilings, specified in the authorizing 
Act for those program activities or their subactivities shall be 
reduced proportionally.


                          salaries and expenses

    For salaries and expenses necessary in carrying out the National 
Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875); 
services authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; 
not to exceed $9,000 for official reception and representation 
expenses; uniforms or allowances therefor, as authorized by 5 U.S.C. 
5901-5902; rental of conference rooms in the District of Columbia; 
reimbursement of the General Services Administration for security guard 
services and headquarters relocation; $136,950,000: Provided, That 
contracts may be entered into under ``Salaries and expenses'' in fiscal 
year 1998 for maintenance and operation of facilities, and for other 
services, to be provided during the next fiscal year.


                       Office of Inspector General

    For necessary expenses of the Office of Inspector General as 
authorized by the Inspector General Act of 1978, as amended, 
$4,850,000, to remain available until September 30, 1999.

                 Neighborhood Reinvestment Corporation


           Payment to the Neighborhood Reinvestment Corporation

    For payment to the Neighborhood Reinvestment Corporation for use in 
neighborhood reinvestment activities, as authorized by the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8101-8107), $60,000,000.

                        Selective Service System


                          Salaries and Expenses

    For necessary expenses of the Selective Service System, including 
expenses of attendance at meetings and of training for uniformed 
personnel assigned to the Selective Service System, as authorized by 5 
U.S.C. 4101-4118 for civilian employees; and not to exceed $1,000 for 
official reception and representation expenses; $23,413,000: Provided, 
That during the current fiscal year, the President may exempt this 
appropriation from the provisions of 31 U.S.C. 1341, whenever he deems 
such action to be necessary in the interest of national defense: 
Provided further, That none of the funds appropriated by this Act may 
be expended for or in connection with the induction of any person into 
the Armed Forces of the United States.

                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of this Act 
are expendable for travel expenses and no specific limitation has been 
placed thereon, the expenditures for such travel expenses may not 
exceed the amounts set forth therefore in the budget estimates 
submitted for the appropriations: Provided, That this provision does 
not apply to accounts that do not contain an object classification for 
travel: Provided further, That this section shall not apply to travel 
performed by uncompensated officials of local boards and appeal boards 
of the Selective Service System; to travel performed directly in 
connection with care and treatment of medical beneficiaries of the 
Department of Veterans Affairs; to travel performed in connection with 
major disasters or emergencies declared or determined by the President 
under the provisions of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act; to travel performed by the Offices of 
Inspector General in connection with audits and investigations; or to 
payments to interagency motor pools where separately set forth in the 
budget schedules: Provided further, That if appropriations in titles I, 
II, and III exceed the amounts set forth in budget estimates initially 
submitted for such appropriations, the expenditures for travel may 
correspondingly exceed the amounts therefore set forth in the estimates 
in the same proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban Development and the 
Selective Service System shall be available in the current fiscal year 
for purchase of uniforms, or allowances therefor, as authorized by 5 
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as 
authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a 
contract or fee basis, and for utilizing and making payment for 
services and facilities of Federal National Mortgage Association, 
Government National Mortgage Association, Federal Home Loan Mortgage 
Corporation, Federal Financing Bank, Federal Reserve banks or any 
member thereof, Federal Home Loan banks, and any insured bank within 
the meaning of the Federal Deposit Insurance Corporation Act, as 
amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
        (1) pursuant to a certification of an officer or employee of 
    the United States unless--
            (A) such certification is accompanied by, or is part of, a 
        voucher or abstract which describes the payee or payees and the 
        items or services for which such expenditure is being made; or
            (B) the expenditure of funds pursuant to such 
        certification, and without such a voucher or abstract, is 
        specifically authorized by law; and
        (2) unless such expenditure is subject to audit by the General 
    Accounting Office or is specifically exempt by law from such audit.
    Sec. 406. None of the funds provided in this Act to any department 
or agency may be expended for the transportation of any officer or 
employee of such department or agency between his domicile and his 
place of employment, with the exception of any officer or employee 
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
    Sec. 407. None of the funds provided in this Act may be used for 
payment, through grants or contracts, to recipients that do not share 
in the cost of conducting research resulting from proposals not 
specifically solicited by the Government: Provided, That the extent of 
cost sharing by the recipient shall reflect the mutuality of interest 
of the grantee or contractor and the Government in the research.
    Sec. 408. None of the funds in this Act may be used, directly or 
through grants, to pay or to provide reimbursement for payment of the 
salary of a consultant (whether retained by the Federal Government or a 
grantee) at more than the daily equivalent of the rate paid for level 
IV of the Executive Schedule, unless specifically authorized by law.
    Sec. 409. None of the funds provided in this Act shall be used to 
pay the expenses of, or otherwise compensate, non-Federal parties 
intervening in regulatory or adjudicatory proceedings. Nothing herein 
affects the authority of the Consumer Product Safety Commission 
pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C. 
2056 et seq.).
    Sec. 410. Except as otherwise provided under existing law or under 
an existing Executive order issued pursuant to an existing law, the 
obligation or expenditure of any appropriation under this Act for 
contracts for any consulting service shall be limited to contracts 
which are: (1) a matter of public record and available for public 
inspection; and (2) thereafter included in a publicly available list of 
all contracts entered into within 24 months prior to the date on which 
the list is made available to the public and of all contracts on which 
performance has not been completed by such date. The list required by 
the preceding sentence shall be updated quarterly and shall include a 
narrative description of the work to be performed under each such 
contract.
    Sec. 411. Except as otherwise provided by law, no part of any 
appropriation contained in this Act shall be obligated or expended by 
any executive agency, as referred to in the Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for 
services unless such executive agency: (1) has awarded and entered into 
such contract in full compliance with such Act and the regulations 
promulgated thereunder; and (2) requires any report prepared pursuant 
to such contract, including plans, evaluations, studies, analyses and 
manuals, and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared pursuant to 
such contract, to contain information concerning: (A) the contract 
pursuant to which the report was prepared; and (B) the contractor who 
prepared the report pursuant to such contract.
    Sec. 412. Except as otherwise provided in section 406, none of the 
funds provided in this Act to any department or agency shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of such department or 
agency.
    Sec. 413. None of the funds provided in this Act to any department 
or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles 
per gallon average of less than 22 miles per gallon.
    Sec. 414. None of the funds appropriated in title I of this Act 
shall be used to enter into any new lease of real property if the 
estimated annual rental is more than $300,000 unless the Secretary 
submits, in writing, a report to the Committees on Appropriations of 
the Congress and a period of 30 days has expired following the date on 
which the report is received by the Committees on Appropriations.
    Sec. 415. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds 
made available in this Act should be American-made.
    (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    Sec. 416. None of the funds appropriated in this Act may be used to 
implement any cap on reimbursements to grantees for indirect costs, 
except as published in Office of Management and Budget Circular A-21.
    Sec. 417. Such sums as may be necessary for fiscal year 1998 pay 
raises for programs funded by this Act shall be absorbed within the 
levels appropriated in this Act.
    Sec. 418. None of the funds made available in this Act may be used 
for any program, project, or activity, when it is made known to the 
Federal entity or official to which the funds are made available that 
the program, project, or activity is not in compliance with any Federal 
law relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Sec. 419. Corporations and agencies of the Department of Housing 
and Urban Development which are subject to the Government Corporation 
Control Act, as amended, are hereby authorized to make such 
expenditures, within the limits of funds and borrowing authority 
available to each such corporation or agency and in accord with law, 
and to make such contracts and commitments without regard to fiscal 
year limitations as provided by section 104 of the Act as may be 
necessary in carrying out the programs set forth in the budget for 1998 
for such corporation or agency except as hereinafter provided: 
Provided, That collections of these corporations and agencies may be 
used for new loan or mortgage purchase commitments only to the extent 
expressly provided for in this Act (unless such loans are in support of 
other forms of assistance provided for in this or prior appropriations 
Acts), except that this proviso shall not apply to the mortgage 
insurance or guaranty operations of these corporations, or where loans 
or mortgage purchases are necessary to protect the financial interest 
of the United States Government.
    Sec. 420. Notwithstanding section 320(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1330(g)), funds made available 
pursuant to authorization under such section for fiscal year 1998 and 
prior fiscal years may be used for implementing comprehensive 
conservation and management plans.
    Sec. 421. Such funds as may be necessary to carry out the orderly 
termination of the Office of Consumer Affairs shall be made available 
from funds appropriated to the Department of Health and Human Services 
for fiscal year 1998.
    Sec. 422. Notwithstanding any other provision of law, the term 
``qualified student loan'' with respect to national service education 
awards shall mean any loan made directly to a student by the Alaska 
Commission on Postsecondary Education, in addition to other meanings 
under section 148(b)(7) of the National and Community Service Act.

                TITLE V--HUD MULTIFAMILY HOUSING REFORM

SEC. 501. TABLE OF CONTENTS.

    The table of contents for this title is as follows:

                 TITLE V--HUD MULTIFAMILY HOUSING REFORM

Sec. 510. Short title.

    Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

Sec. 511. Findings and purposes.
Sec. 512. Definitions.
Sec. 513. Authority of participating administrative entities.
Sec. 514. Mortgage restructuring and rental assistance sufficiency plan.
Sec. 515. Section 8 renewals and long-term affordability commitment by 
          owner of project.
Sec. 516. Prohibition on restructuring.
Sec. 517. Restructuring tools.
Sec. 518. Management standards.
Sec. 519. Monitoring of compliance.
Sec. 520. Reports to Congress.
Sec. 521. GAO audit and review.
Sec. 522. Regulations.
Sec. 523. Technical and conforming amendments.
Sec. 524. Section 8 contract renewals.

                  Subtitle B--Miscellaneous Provisions

Sec. 531. Rehabilitation grants for certain insured projects.
Sec. 532. GAO report on section 8 rental assistance for multifamily 
          housing projects.

                   Subtitle C--Enforcement Provisions

Sec. 541. Implementation.
Sec. 542. Income verification.


             PART 1--FHA SINGLE FAMILY AND MULTIFAMILY HOUSING

Sec. 551. Authorization to immediately suspend mortgagees.
Sec. 552. Extension of equity skimming to other single family and 
          multifamily housing programs.
Sec. 553. Civil money penalties against mortgagees, lenders, and other 
          participants in FHA programs.


                    PART 2--FHA MULTIFAMILY PROVISIONS

Sec. 561. Civil money penalties against general partners, officers, 
          directors, and certain managing agents of multifamily 
          projects.
Sec. 562. Civil money penalties for noncompliance with section 8 HAP 
          contracts.
Sec. 563. Extension of double damages remedy.
Sec. 564. Obstruction of Federal audits.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

Sec. 571. Establishment of Office of Multifamily Housing Assistance 
          Restructuring.
Sec. 572. Director.
Sec. 573. Duty and authority of Director.
Sec. 574. Personnel.
Sec. 575. Budget and financial reports.
Sec. 576. Limitation on subsequent employment.
Sec. 577. Audits by GAO.
Sec. 578. Suspension of program because of failure to appoint Director.
Sec. 579. Termination.

SEC. 510. SHORT TITLE.

    This title may be cited as the ``Multifamily Assisted Housing 
Reform and Affordability Act of 1997''.

   Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

SEC. 511. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
        (1) there exists throughout the Nation a need for decent, safe, 
    and affordable housing;
        (2) as of the date of enactment of this Act, it is estimated 
    that--
            (A) the insured multifamily housing portfolio of the 
        Federal Housing Administration consists of 14,000 rental 
        properties, with an aggregate unpaid principal mortgage balance 
        of $38,000,000,000; and
            (B) approximately 10,000 of these properties contain 
        housing units that are assisted with project-based rental 
        assistance under section 8 of the United States Housing Act of 
        1937;
        (3) FHA-insured multifamily rental properties are a major 
    Federal investment, providing affordable rental housing to an 
    estimated 2,000,000 low- and very low-income families;
        (4) approximately 1,600,000 of these families live in dwelling 
    units that are assisted with project-based rental assistance under 
    section 8 of the United States Housing Act of 1937;
        (5) a substantial number of housing units receiving project-
    based assistance have rents that are higher than the rents of 
    comparable, unassisted rental units in the same housing rental 
    market;
        (6) many of the contracts for project-based assistance will 
    expire during the several years following the date of enactment of 
    this Act;
        (7) it is estimated that--
            (A) if no changes in the terms and conditions of the 
        contracts for project-based assistance are made before fiscal 
        year 2000, the cost of renewing all expiring rental assistance 
        contracts under section 8 of the United States Housing Act of 
        1937 for both project-based and tenant-based rental assistance 
        will increase from approximately $3,600,000,000 in fiscal year 
        1997 to over $14,300,000,000 by fiscal year 2000 and some 
        $22,400,000,000 in fiscal year 2006;
            (B) of those renewal amounts, the cost of renewing project-
        based assistance will increase from $1,200,000,000 in fiscal 
        year 1997 to almost $7,400,000,000 by fiscal year 2006; and
            (C) without changes in the manner in which project-based 
        rental assistance is provided, renewals of expiring contracts 
        for project-based rental assistance will require an 
        increasingly larger portion of the discretionary budget 
        authority of the Department of Housing and Urban Development in 
        each subsequent fiscal year for the foreseeable future;
        (8) absent new budget authority for the renewal of expiring 
    rental contracts for project-based assistance, many of the FHA-
    insured multifamily housing projects that are assisted with 
    project-based assistance are likely to default on their FHA-insured 
    mortgage payments, resulting in substantial claims to the FHA 
    General Insurance Fund and Special Risk Insurance Fund;
        (9) more than 15 percent of federally assisted multifamily 
    housing projects are physically or financially distressed, 
    including a number which suffer from mismanagement;
        (10) due to Federal budget constraints, the downsizing of the 
    Department of Housing and Urban Development, and diminished 
    administrative capacity, the Department lacks the ability to ensure 
    the continued economic and physical well-being of the stock of 
    federally insured and assisted multifamily housing projects;
        (11) the economic, physical, and management problems facing the 
    stock of federally insured and assisted multifamily housing 
    projects will be best served by reforms that--
            (A) reduce the cost of Federal rental assistance, including 
        project-based assistance, to these projects by reducing the 
        debt service and operating costs of these projects while 
        retaining the low-income affordability and availability of this 
        housing;
            (B) address physical and economic distress of this housing 
        and the failure of some project managers and owners of projects 
        to comply with management and ownership rules and requirements; 
        and
            (C) transfer and share many of the loan and contract 
        administration functions and responsibilities of the Secretary 
        to and with capable State, local, and other entities; and
        (12) the authority and duties of the Secretary, not including 
    the control by the Secretary of applicable accounts in the Treasury 
    of the United States, may be delegated to State, local or other 
    entities at the discretion of the Secretary, to the extent the 
    Secretary determines, and for the purpose of carrying out this Act, 
    so that the Secretary has the discretion to be relieved of 
    processing and approving any document or action required by these 
    reforms.
    (b) Purposes.--Consistent with the purposes and requirements of the 
Government Performance and Results Act of 1993, the purposes of this 
subtitle are--
        (1) to preserve low-income rental housing affordability and 
    availability while reducing the long-term costs of project-based 
    assistance;
        (2) to reform the design and operation of Federal rental 
    housing assistance programs, administered by the Secretary, to 
    promote greater multifamily housing project operating and cost 
    efficiencies;
        (3) to encourage owners of eligible multifamily housing 
    projects to restructure their FHA-insured mortgages and project-
    based assistance contracts in a manner that is consistent with this 
    subtitle before the year in which the contract expires;
        (4) to reduce the cost of insurance claims under the National 
    Housing Act related to mortgages insured by the Secretary and used 
    to finance eligible multifamily housing projects;
        (5) to streamline and improve federally insured and assisted 
    multifamily housing project oversight and administration;
        (6) to resolve the problems affecting financially and 
    physically troubled federally insured and assisted multifamily 
    housing projects through cooperation with residents, owners, State 
    and local governments, and other interested entities and 
    individuals;
        (7) to protect the interest of project owners and managers, 
    because they are partners of the Federal Government in meeting the 
    affordable housing needs of the Nation through the section 8 rental 
    housing assistance program;
        (8) to protect the interest of tenants residing in the 
    multifamily housing projects at the time of the restructuring for 
    the housing; and
        (9) to grant additional enforcement tools to use against those 
    who violate agreements and program requirements, in order to ensure 
    that the public interest is safeguarded and that Federal 
    multifamily housing programs serve their intended purposes.

SEC. 512. DEFINITIONS.

    In this subtitle:
        (1) Comparable properties.--The term ``comparable properties'' 
    means properties in the same market areas, where practicable, 
    that--
            (A) are similar to the eligible multifamily housing project 
        as to neighborhood (including risk of crime), type of location, 
        access, street appeal, age, property size, apartment mix, 
        physical configuration, property and unit amenities, utilities, 
        and other relevant characteristics; and
            (B) are not receiving project-based assistance.
        (2) Eligible multifamily housing project.--The term ``eligible 
    multifamily housing project'' means a property consisting of more 
    than 4 dwelling units--
            (A) with rents that, on an average per unit or per room 
        basis, exceed the rent of comparable properties in the same 
        market area, determined in accordance with guidelines 
        established by the Secretary;
            (B) that is covered in whole or in part by a contract for 
        project-based assistance under--
                (i) the new construction or substantial rehabilitation 
            program under section 8(b)(2) of the United States Housing 
            Act of 1937 (as in effect before October 1, 1983);
                (ii) the property disposition program under section 
            8(b) of the United States Housing Act of 1937;
                (iii) the moderate rehabilitation program under section 
            8(e)(2) of the United States Housing Act of 1937;
                (iv) the loan management assistance program under 
            section 8 of the United States Housing Act of 1937;
                (v) section 23 of the United States Housing Act of 1937 
            (as in effect before January 1, 1975);
                (vi) the rent supplement program under section 101 of 
            the Housing and Urban Development Act of 1965; or
                (vii) section 8 of the United States Housing Act of 
            1937, following conversion from assistance under section 
            101 of the Housing and Urban Development Act of 1965; and
            (C) financed by a mortgage insured or held by the Secretary 
        under the National Housing Act.
        (3) Expiring contract.--The term ``expiring contract'' means a 
    project-based assistance contract attached to an eligible 
    multifamily housing project which, under the terms of the contract, 
    will expire.
        (4) Expiration date.--The term ``expiration date'' means the 
    date on which an expiring contract expires.
        (5) Fair market rent.--The term ``fair market rent'' means the 
    fair market rental established under section 8(c) of the United 
    States Housing Act of 1937.
        (6) Low-income families.--The term ``low-income families'' has 
    the same meaning as provided under section 3(b)(2) of the United 
    States Housing Act of 1937.
        (7) Mortgage restructuring and rental assistance sufficiency 
    plan.--The term ``mortgage restructuring and rental assistance 
    sufficiency plan'' means the plan as provided under section 514.
        (8) Nonprofit organization.--The term ``nonprofit 
    organization'' means any private nonprofit organization that--
            (A) is organized under State or local laws;
            (B) has no part of its net earnings inuring to the benefit 
        of any member, founder, contributor, or individual; and
            (C) has a long-term record of service in providing or 
        financing quality affordable housing for low-income families 
        through relationships with public entities.
        (9) Portfolio restructuring agreement.--The term ``portfolio 
    restructuring agreement'' means the agreement entered into between 
    the Secretary and a participating administrative entity, as 
    provided under section 513.
        (10) Participating administrative entity.--The term 
    ``participating administrative entity'' means a public agency 
    (including a State housing finance agency or a local housing 
    agency), a nonprofit organization, or any other entity (including a 
    law firm or an accounting firm) or a combination of such entities, 
    that meets the requirements under section 513(b).
        (11) Project-based assistance.--The term ``project-based 
    assistance'' means rental assistance described in paragraph (2)(B) 
    of this section that is attached to a multifamily housing project.
        (12) Renewal.--The term ``renewal'' means the replacement of an 
    expiring Federal rental contract with a new contract under section 
    8 of the United States Housing Act of 1937, consistent with the 
    requirements of this subtitle.
        (13) Secretary.--The term ``Secretary'' means the Secretary of 
    Housing and Urban Development.
        (14) State.--The term ``State'' has the same meaning as in 
    section 104 of the Cranston-Gonzalez National Affordable Housing 
    Act.
        (15) Tenant-based assistance.--The term ``tenant-based 
    assistance'' has the same meaning as in section 8(f) of the United 
    States Housing Act of 1937.
        (16) Unit of general local government.--The term ``unit of 
    general local government'' has the same meaning as in section 104 
    of the Cranston-Gonzalez National Affordable Housing Act.
        (17) Very low-income family.--The term ``very low-income 
    family'' has the same meaning as in section 3(b) of the United 
    States Housing Act of 1937.
        (18) Qualified mortgagee.--The term ``qualified mortgagee'' 
    means an entity approved by the Secretary that is capable of 
    servicing, as well as originating, FHA-insured mortgages, and 
    that--
            (A) is not suspended or debarred by the Secretary;
            (B) is not suspended or on probation imposed by the 
        Mortgagee Review Board; and
            (C) is not in default under any Government National 
        Mortgage Association obligation.

SEC. 513. AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES.

    (a) Participating Administrative Entities.--
        (1) In general.--Subject to subsection (b)(3), the Secretary 
    shall enter into portfolio restructuring agreements with 
    participating administrative entities for the implementation of 
    mortgage restructuring and rental assistance sufficiency plans to 
    restructure multifamily housing mortgages insured or held by the 
    Secretary under the National Housing Act, in order to--
            (A) reduce the costs of expiring contracts for assistance 
        under section 8 of the United States Housing Act of 1937;
            (B) address financially and physically troubled projects; 
        and
            (C) correct management and ownership deficiencies.
        (2) Portfolio restructuring agreements.--Each portfolio 
    restructuring agreement entered into under this subsection shall--
            (A) be a cooperative agreement to establish the obligations 
        and requirements between the Secretary and the participating 
        administrative entity;
            (B) identify the eligible multifamily housing projects or 
        groups of projects for which the participating administrative 
        entity is responsible for assisting in developing and 
        implementing approved mortgage restructuring and rental 
        assistance sufficiency plans under section 514;
            (C) require the participating administrative entity to 
        review and certify to the accuracy and completeness of the 
        evaluation of rehabilitation needs required under section 
        514(e)(3) for each eligible multifamily housing project 
        included in the portfolio restructuring agreement, in 
        accordance with regulations promulgated by the Secretary;
            (D) identify the responsibilities of both the participating 
        administrative entity and the Secretary in implementing a 
        mortgage restructuring and rental assistance sufficiency plan, 
        including any actions proposed to be taken under section 516 or 
        517;
            (E) require each mortgage restructuring and rental 
        assistance sufficiency plan to be prepared in accordance with 
        the requirements of section 514 for each eligible multifamily 
        housing project;
            (F) include other requirements established by the 
        Secretary, including a right of the Secretary to terminate the 
        contract immediately for failure of the participating 
        administrative entity to comply with any applicable 
        requirement;
            (G) if the participating administrative entity is a State 
        housing finance agency or a local housing agency, indemnify the 
        participating administrative entity against lawsuits and 
        penalties for actions taken pursuant to the agreement, 
        excluding actions involving willful misconduct or negligence;
            (H) include compensation for all reasonable expenses 
        incurred by the participating administrative entity necessary 
        to perform its duties under this subtitle; and
            (I) include, where appropriate, incentive agreements with 
        the participating administrative entity to reward superior 
        performance in meeting the purposes of this Act.
    (b) Selection of Participating Administrative Entity.--
        (1) Selection criteria.--The Secretary shall select a 
    participating administrative entity based on whether, in the 
    determination of the Secretary, the participating administrative 
    entity--
            (A) has demonstrated experience in working directly with 
        residents of low-income housing projects and with tenants and 
        other community-based organizations;
            (B) has demonstrated experience with and capacity for 
        multifamily restructuring and multifamily financing (which may 
        include risk-sharing arrangements and restructuring eligible 
        multifamily housing properties under the fiscal year 1997 
        Federal Housing Administration multifamily housing 
        demonstration program);
            (C) has a history of stable, financially sound, and 
        responsible administrative performance (which may include the 
        management of affordable low-income rental housing);
            (D) has demonstrated financial strength in terms of asset 
        quality, capital adequacy, and liquidity;
            (E) has demonstrated that it will carry out the specific 
        transactions and other responsibilities under this subtitle in 
        a timely, efficient, and cost-effective manner; and
            (F) meets other criteria, as determined by the Secretary.
        (2) Selection.--If more than 1 interested entity meets the 
    qualifications and selection criteria for a participating 
    administrative entity, the Secretary may select the entity that 
    demonstrates, as determined by the Secretary, that it will--
            (A) provide the most timely, efficient, and cost-
        effective--
                (i) restructuring of the mortgages covered by the 
            portfolio restructuring agreement; and
                (ii) administration of the section 8 project-based 
            assistance contract, if applicable; and
            (B) protect the public interest (including the long-term 
        provision of decent low-income affordable rental housing and 
        protection of residents, communities, and the American 
        taxpayer).
        (3) Partnerships.--For the purposes of any participating 
    administrative entity applying under this subsection, participating 
    administrative entities are encouraged to develop partnerships with 
    each other and with nonprofit organizations, if such partnerships 
    will further the participating administrative entity's ability to 
    meet the purposes of this Act.
        (4) Alternative administrators.--With respect to any eligible 
    multifamily housing project for which a participating 
    administrative entity is unavailable, or should not be selected to 
    carry out the requirements of this subtitle with respect to that 
    multifamily housing project for reasons relating to the selection 
    criteria under paragraph (1), the Secretary shall--
            (A) carry out the requirements of this subtitle with 
        respect to that eligible multifamily housing project; or
            (B) contract with other qualified entities that meet the 
        requirements of paragraph (1) to provide the authority to carry 
        out all or a portion of the requirements of this subtitle with 
        respect to that eligible multifamily housing project.
        (5) Priority for public agencies as participating 
    administrative entities.--The Secretary shall provide a reasonable 
    period during which the Secretary will consider proposals only from 
    State housing finance agencies or local housing agencies, and the 
    Secretary shall select such an agency without considering other 
    applicants if the Secretary determines that the agency is 
    qualified. The period shall be of sufficient duration for the 
    Secretary to determine whether any State housing finance agencies 
    or local housing agencies are interested and qualified. Not later 
    than the end of the period, the Secretary shall notify the State 
    housing finance agency or the local housing agency regarding the 
    status of the proposal and, if the proposal is rejected, the 
    reasons for the rejection and an opportunity for the applicant to 
    respond.
        (6) State and local portfolio requirements.--
            (A) In general.--If the housing finance agency of a State 
        is selected as the participating administrative entity, that 
        agency shall be responsible for such eligible multifamily 
        housing projects in that State as may be agreed upon by the 
        participating administrative entity and the Secretary. If a 
        local housing agency is selected as the participating 
        administrative entity, that agency shall be responsible for 
        such eligible multifamily housing projects in the jurisdiction 
        of the agency as may be agreed upon by the participating 
        administrative entity and the Secretary.
            (B) Nondelegation.--Except with the prior approval of the 
        Secretary, a participating administrative entity may not 
        delegate or transfer responsibilities and functions under this 
        subtitle to 1 or more entities.
        (7) Private entity requirements.--
            (A) In general.--If a for-profit entity is selected as the 
        participating administrative entity, that entity shall be 
        required to enter into a partnership with a public purpose 
        entity (including the Department).
            (B) Prohibition.--No private entity shall share, 
        participate in, or otherwise benefit from any equity created, 
        received, or restructured as a result of the portfolio 
        restructuring agreement.

SEC. 514. MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE SUFFICIENCY 
              PLAN.

    (a) In General.--
        (1) Development of procedures and requirements.--The Secretary 
    shall develop procedures and requirements for the submission of a 
    mortgage restructuring and rental assistance sufficiency plan for 
    each eligible multifamily housing project with an expiring 
    contract.
        (2) Terms and conditions.--Each mortgage restructuring and 
    rental assistance sufficiency plan submitted under this subsection 
    shall be developed by the participating administrative entity, in 
    cooperation with an owner of an eligible multifamily housing 
    project and any servicer for the mortgage that is a qualified 
    mortgagee, under such terms and conditions as the Secretary shall 
    require.
        (3) Consolidation.--Mortgage restructuring and rental 
    assistance sufficiency plans submitted under this subsection may be 
    consolidated as part of an overall strategy for more than 1 
    property.
    (b) Notice Requirements.--The Secretary shall establish notice 
procedures and hearing requirements for tenants and owners concerning 
the dates for the expiration of project-based assistance contracts for 
any eligible multifamily housing project.
    (c) Extension of Contract Term.--Subject to agreement by a project 
owner, the Secretary may extend the term of any expiring contract or 
provide a section 8 contract with rent levels set in accordance with 
subsection (g) for a period sufficient to facilitate the implementation 
of a mortgage restructuring and rental assistance sufficiency plan, as 
determined by the Secretary.
    (d) Tenant Rent Protection.--If the owner of a project with an 
expiring Federal rental assistance contract does not agree to extend 
the contract, not less than 12 months prior to terminating the 
contract, the project owner shall provide written notice to the 
Secretary and the tenants and the Secretary shall make tenant-based 
assistance available to tenants residing in units assisted under the 
expiring contract at the time of expiration.
    (e) Mortgage Restructuring and Rental Assistance Sufficiency 
Plan.--Each mortgage restructuring and rental assistance sufficiency 
plan shall--
        (1) except as otherwise provided, restructure the project-based 
    assistance rents for the eligible multifamily housing project in a 
    manner consistent with subsection (g), or provide for tenant-based 
    assistance in accordance with section 515;
        (2) allow for rent adjustments by applying an operating cost 
    adjustment factor established under guidelines established by the 
    Secretary;
        (3) require the owner or purchaser of an eligible multifamily 
    housing project to evaluate the rehabilitation needs of the 
    project, in accordance with regulations of the Secretary, and 
    notify the participating administrative entity of the 
    rehabilitation needs;
        (4) require the owner or purchaser of the project to provide or 
    contract for competent management of the project;
        (5) require the owner or purchaser of the project to take such 
    actions as may be necessary to rehabilitate, maintain adequate 
    reserves, and to maintain the project in decent and safe condition, 
    based on housing quality standards established by--
            (A) the Secretary; or
            (B) local housing codes or codes adopted by public housing 
        agencies that--
                (i) meet or exceed housing quality standards 
            established by the Secretary; and
                (ii) do not severely restrict housing choice;
        (6) require the owner or purchaser of the project to maintain 
    affordability and use restrictions in accordance with regulations 
    promulgated by the Secretary, for a term of not less than 30 years 
    which restrictions shall be--
            (A) contained in a legally enforceable document recorded in 
        the appropriate records; and
            (B) consistent with the long-term physical and financial 
        viability and character of the project as affordable housing;
        (7) include a certification by the participating administrative 
    entity that the restructuring meets subsidy layering requirements 
    established by the Secretary by regulation for purposes of this 
    subtitle;
        (8) require the owner or purchaser of the project to meet such 
    other requirements as the Secretary determines to be appropriate; 
    and
        (9) prohibit the owner from refusing to lease a reasonable 
    number of units to holders of certificates and vouchers under 
    section 8 of the United States Housing Act of 1937 because of the 
    status of the prospective tenants as certificate and voucher 
    holders.
    (f) Tenant and Other Participation and Capacity Building.--
        (1) Procedures.--
            (A) In general.--The Secretary shall establish procedures 
        to provide an opportunity for tenants of the project, residents 
        of the neighborhood, the local government, and other affected 
        parties to participate effectively and on a timely basis in the 
        restructuring process established by this subtitle.
            (B) Coverage.--These procedures shall take into account the 
        need to provide tenants of the project, residents of the 
        neighborhood, the local government, and other affected parties 
        timely notice of proposed restructuring actions and appropriate 
        access to relevant information about restructuring activities. 
        To the extent practicable and consistent with the need to 
        accomplish project restructuring in an efficient manner, the 
        procedures shall give all such parties an opportunity to 
        provide comments to the participating administrative entity in 
        writing, in meetings, or in another appropriate manner (which 
        comments shall be taken into consideration by the participating 
        administrative entity).
        (2) Required consultation.--The procedures developed pursuant 
    to paragraph (1) shall require consultation with tenants of the 
    project, residents of the neighborhood, the local government, and 
    other affected parties, in connection with at least the following:
            (A) the mortgage restructuring and rental assistance 
        sufficiency plan;
            (B) any proposed transfer of the project; and
            (C) the rental assistance assessment plan pursuant to 
        section 515(c).
        (3) Funding.--
            (A) In general.--The Secretary may provide not more than 
        $10,000,000 annually in funding from which the Secretary may 
        make obligations to tenant groups, nonprofit organizations, and 
        public entities for building the capacity of tenant 
        organizations, for technical assistance in furthering any of 
        the purposes of this subtitle (including transfer of 
        developments to new owners) and for tenant services, from those 
        amounts made available under appropriations Acts for 
        implementing this subtitle or previously made available for 
        technical assistance in connection with the preservation of 
        affordable rental housing for low-income persons.
            (B) Manner of providing.--Notwithstanding any other 
        provision of law restricting the use of preservation technical 
        assistance funds, the Secretary may provide any funds made 
        available under subparagraph (A) through existing technical 
        assistance programs pursuant to any other Federal law, 
        including the Low-Income Housing Preservation and Resident 
        Homeownership Act of 1990 and the Multifamily Property 
        Disposition Reform Act of 1994, or through any other means that 
        the Secretary considers consistent with the purposes of this 
        subtitle, without regard to any set-aside requirement otherwise 
        applicable to those funds.
            (C) Prohibition.--None of the funds made available under 
        subparagraph (A) may be used directly or indirectly to pay for 
        any personal service, advertisement, telegram, telephone, 
        letter, printed or written matter, or other device, intended or 
        designed to influence in any manner a Member of Congress, to 
        favor or oppose, by vote or otherwise, any legislation or 
        appropriation by Congress, whether before or after the 
        introduction of any bill or resolution proposing such 
        legislation or appropriation.
    (g) Rent Levels.--
        (1) In general.--Except as provided in paragraph (2), each 
    mortgage restructuring and rental assistance sufficiency plan 
    pursuant to the terms, conditions, and requirements of this 
    subtitle shall establish for units assisted with project-based 
    assistance in eligible multifamily housing projects adjusted rent 
    levels that--
            (A) are equivalent to rents derived from comparable 
        properties, if--
                (i) the participating administrative entity makes the 
            rent determination within a reasonable period of time; and
                (ii) the market rent determination is based on not less 
            than 2 comparable properties; or
            (B) if those rents cannot be determined, are equal to 90 
        percent of the fair market rents for the relevant market area.
        (2) Exceptions.--
            (A) In general.--A contract under this section may include 
        rent levels that exceed the rent level described in paragraph 
        (1) at rent levels that do not exceed 120 percent of the fair 
        market rent for the market area (except that the Secretary may 
        waive this limit for not more than five percent of all units 
        subject to restructured mortgages in any fiscal year, based on 
        a finding of special need), if the participating administrative 
        entity--
                (i) determines that the housing needs of the tenants 
            and the community cannot be adequately addressed through 
            implementation of the rent limitation required to be 
            established through a mortgage restructuring and rental 
            assistance sufficiency plan under paragraph (1); and
                (ii) follows the procedures under paragraph (3).
            (B) Exception rents.--In any fiscal year, a participating 
        administrative entity may approve exception rents on not more 
        than 20 percent of all units covered by the portfolio 
        restructuring agreement with expiring contracts in that fiscal 
        year, except that the Secretary may waive this ceiling upon a 
        finding of special need.
        (3) Rent levels for exception projects.--For purposes of this 
    section, a project eligible for an exception rent shall receive a 
    rent calculated on the actual and projected costs of operating the 
    project, at a level that provides income sufficient to support a 
    budget-based rent that consists of--
            (A) the debt service of the project;
            (B) the operating expenses of the project, as determined by 
        the participating administrative entity, including--
                (i) contributions to adequate reserves;
                (ii) the costs of maintenance and necessary 
            rehabilitation; and
                (iii) other eligible costs permitted under section 8 of 
            the United States Housing Act of 1937;
            (C) an adequate allowance for potential operating losses 
        due to vacancies and failure to collect rents, as determined by 
        the participating administrative entity;
            (D) an allowance for a reasonable rate of return to the 
        owner or purchaser of the project, as determined by the 
        participating administrative entity, which may be established 
        to provide incentives for owners or purchasers to meet 
        benchmarks of quality for management and housing quality; and
            (E) other expenses determined by the participating 
        administrative entity to be necessary for the operation of the 
        project.
    (h) Exemptions From Restructuring.--The following categories of 
projects shall not be covered by a mortgage restructuring and rental 
assistance sufficiency plan if--
        (1) the primary financing or mortgage insurance for the 
    multifamily housing project that is covered by that expiring 
    contract was provided by a unit of State government or a unit of 
    general local government (or an agency or instrumentality of a unit 
    of a State government or unit of general local government);
        (2) the project is a project financed under section 202 of the 
    Housing Act of 1959 or section 515 of the Housing Act of 1949; or
        (3) the project has an expiring contract under section 8 of the 
    United States Housing Act of 1937 entered into pursuant to section 
    441 of the Stewart B. McKinney Homeless Assistance Act.

SEC. 515. SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY COMMITMENT BY 
              OWNER OF PROJECT.

    (a) Section 8 Renewals of Restructured Projects.--
        (1) Project-based assistance.--Subject to the availability of 
    amounts provided in advance in appropriations Acts, and to the 
    control of the Secretary of applicable accounts in the Treasury of 
    the United States, with respect to an expiring section 8 contract 
    on an eligible multifamily housing project to be renewed with 
    project-based assistance (based on a determination under subsection 
    (c)), the Secretary shall enter into contracts with participating 
    administrative entities pursuant to which the participating 
    administrative entity shall offer to renew or extend the contract, 
    or the Secretary shall offer to renew such contract, and the owner 
    of the project shall accept the offer, if the initial renewal is in 
    accordance with the terms and conditions specified in the mortgage 
    restructuring and rental assistance sufficiency plan and the rental 
    assistance assessment plan.
        (2) Tenant-based assistance.--Subject to the availability of 
    amounts provided in advance in appropriations Acts and to the 
    control of the Secretary of applicable accounts in the Treasury of 
    the United States, with respect to an expiring section 8 contract 
    on an eligible multifamily housing project to be renewed with 
    tenant-based assistance (based on a determination under subsection 
    (c)), the Secretary shall enter into contracts with participating 
    administrative entities pursuant to which the participating 
    administrative entity shall provide for the renewal of section 8 
    assistance on an eligible multifamily housing project with tenant-
    based assistance, or the Secretary shall provide for such renewal, 
    in accordance with the terms and conditions specified in the 
    mortgage restructuring and rental assistance sufficiency plan and 
    the rental assistance assessment plan.
    (b) Required Commitment.--After the initial renewal of a section 8 
contract pursuant to this section, the owner shall accept each offer 
made pursuant to subsection (a) to renew the contract, for the term of 
the affordability and use restrictions required by section 514(e)(6), 
if the offer to renew is on terms and conditions specified in the 
mortgage restructuring and rental assistance sufficiency plan.
    (c) Determination of Whether To Renew With Project-Based or Tenant-
Based Assistance.--
        (1) Mandatory renewal of project-based assistance.--Section 8 
    assistance shall be renewed with project-based assistance, if--
            (A) the project is located in an area in which the 
        participating administrative entity determines, based on 
        housing market indicators, such as low vacancy rates or high 
        absorption rates, that there is not adequate available and 
        affordable housing or that the tenants of the project would not 
        be able to locate suitable units or use the tenant-based 
        assistance successfully;
            (B) a predominant number of the units in the project are 
        occupied by elderly families, disabled families, or elderly and 
        disabled families;
            (C) the project is held by a nonprofit cooperative 
        ownership housing corporation or nonprofit cooperative housing 
        trust.
        (2) Rental assistance assessment plan.--
            (A) In general.--With respect to any project that is not 
        described in paragraph (1), the participating administrative 
        entity shall, after consultation with the owner of the project, 
        develop a rental assistance assessment plan to determine 
        whether to renew assistance for the project with tenant-based 
        assistance or project-based assistance.
            (B) Rental assistance assessment plan requirements.--Each 
        rental assistance assessment plan developed under this 
        paragraph shall include an assessment of the impact of 
        converting to tenant-based assistance and the impact of 
        extending project-based assistance on--
                (i) the ability of the tenants to find adequate, 
            available, decent, comparable, and affordable housing in 
            the local market;
                (ii) the types of tenants residing in the project (such 
            as elderly families, disabled families, large families, and 
            cooperative homeowners);
                (iii) the local housing needs identified in the 
            comprehensive housing affordability strategy, and local 
            market vacancy trends;
                (iv) the cost of providing assistance, comparing the 
            applicable payment standard to the project's adjusted rent 
            levels determined under section 514(g);
                (v) the long-term financial stability of the project;
                (vi) the ability of residents to make reasonable 
            choices about their individual living situations;
                (vii) the quality of the neighborhood in which the 
            tenants would reside; and
                (viii) the project's ability to compete in the 
            marketplace.
            (C) Reports to director.--Each participating administrative 
        entity shall report regularly to the Director as defined in 
        subtitle D, as the Director shall require, identifying--
                (i) each eligible multifamily housing project for which 
            the entity has developed a rental assistance assessment 
            plan under this paragraph that determined that the tenants 
            of the project generally supported renewal of assistance 
            with tenant-based assistance, but under which assistance 
            for the project was renewed with project-based assistance; 
            and
                (ii) each project for which the entity has developed 
            such a plan under which the assistance is renewed using 
            tenant-based assistance.
        (3) Eligibility for tenant-based assistance.--Subject to 
    paragraph (4), with respect to any project that is not described in 
    paragraph (1), if a participating administrative entity approves 
    the use of tenant-based assistance based on a rental assistance 
    assessment plan developed under paragraph (2), tenant-based 
    assistance shall be provided to each assisted family (other than a 
    family already receiving tenant-based assistance) residing in the 
    project at the time the assistance described in section 512(2)(B) 
    terminates.
        (4) Rents for families receiving tenant-based assistance.--
            (A) In general.--Notwithstanding subsection (c)(1) or 
        (o)(1) of section 8 of the United States Housing Act of 1937, 
        in the case of any family described in paragraph (3) that 
        resides in a project described in section 512(2)(B) in which 
        the reasonable rent (which rent shall include any amount 
        allowed for utilities and shall not exceed comparable market 
        rents for the relevant housing market area) exceeds the fair 
        market rent limitation or the payment standard, as applicable, 
        the amount of assistance for the family shall be determined in 
        accordance with subparagraph (B).
            (B) Maximum monthly rent; payment standard.--With respect 
        to the certificate program under section 8(b) of the United 
        States Housing Act of 1937, the maximum monthly rent under the 
        contract (plus any amount allowed for utilities) shall be such 
        reasonable rent for the unit. With respect to the voucher 
        program under section 8(o) of the United States Housing Act of 
        1937, the payment standard shall be deemed to be such 
        reasonable rent for the unit.
        (5) Inapplicability of certain provision.--If a participating 
    administrative entity approves renewal with project-based 
    assistance under this subsection, section 8(d)(2) of the United 
    States Housing Act of 1937 shall not apply.

SEC. 516. PROHIBITION ON RESTRUCTURING.

    (a) Prohibition on Restructuring.--The Secretary may elect not to 
consider any mortgage restructuring and rental assistance sufficiency 
plan or request for contract renewal if the Secretary or the 
participating administrative entity determines that--
        (1)(A) the owner or purchaser of the project has engaged in 
    material adverse financial or managerial actions or omissions with 
    regard to such project; or
        (B) the owner or purchaser of the project has engaged in 
    material adverse financial or managerial actions or omissions with 
    regard to other projects of such owner or purchaser that are 
    federally assisted or financed with a loan from, or mortgage 
    insured or guaranteed by, an agency of the Federal Government;
        (2) material adverse financial or managerial actions or 
    omissions include--
            (A) materially violating any Federal, State, or local law 
        or regulation with regard to this project or any other 
        federally assisted project, after receipt of notice and an 
        opportunity to cure;
            (B) materially breaching a contract for assistance under 
        section 8 of the United States Housing Act of 1937, after 
        receipt of notice and an opportunity to cure;
            (C) materially violating any applicable regulatory or other 
        agreement with the Secretary or a participating administrative 
        entity, after receipt of notice and an opportunity to cure;
            (D) repeatedly and materially violating any Federal, State, 
        or local law or regulation with regard to the project or any 
        other federally assisted project;
            (E) repeatedly and materially breaching a contract for 
        assistance under section 8 of the United States Housing Act of 
        1937;
            (F) repeatedly and materially violating any applicable 
        regulatory or other agreement with the Secretary or a 
        participating administrative entity;
            (G) repeatedly failing to make mortgage payments at times 
        when project income was sufficient to maintain and operate the 
        property;
            (H) materially failing to maintain the property according 
        to housing quality standards after receipt of notice and a 
        reasonable opportunity to cure; or
            (I) committing any actions or omissions that would warrant 
        suspension or debarment by the Secretary;
        (3) the owner or purchaser of the property materially failed to 
    follow the procedures and requirements of this subtitle, after 
    receipt of notice and an opportunity to cure; or
        (4) the poor condition of the project cannot be remedied in a 
    cost effective manner, as determined by the participating 
    administrative entity.
The term ``owner'' as used in this subsection, in addition to it having 
the same meaning as in section 8(f) of the United States Housing Act of 
1937, also means an affiliate of the owner. The term ``purchaser'' as 
used in this subsection means any private person or entity, including a 
cooperative, an agency of the Federal Government, or a public housing 
agency, that, upon purchase of the project, would have the legal right 
to lease or sublease dwelling units in the project, and also means an 
affiliate of the purchaser. The terms ``affiliate of the owner'' and 
``affiliate of the purchaser'' means any person or entity (including, 
but not limited to, a general partner or managing member, or an officer 
of either) that controls an owner or purchaser, is controlled by an 
owner or purchaser, or is under common control with the owner or 
purchaser. The term ``control'' means the direct or indirect power 
(under contract, equity ownership, the right to vote or determine a 
vote, or otherwise) to direct the financial, legal, beneficial or other 
interests of the owner or purchaser.
    (b) Opportunity To Dispute Findings.--
        (1) In general.--During the 30-day period beginning on the date 
    on which the owner or purchaser of an eligible multifamily housing 
    project receives notice of a rejection under subsection (a) or of a 
    mortgage restructuring and rental assistance sufficiency plan under 
    section 514, the Secretary or participating administrative entity 
    shall provide that owner or purchaser with an opportunity to 
    dispute the basis for the rejection and an opportunity to cure.
        (2) Affirmation, modification, or reversal.--
            (A) In general.--After providing an opportunity to dispute 
        under paragraph (1), the Secretary or the participating 
        administrative entity may affirm, modify, or reverse any 
        rejection under subsection (a) or rejection of a mortgage 
        restructuring and rental assistance sufficiency plan under 
        section 514.
            (B) Reasons for decision.--The Secretary or the 
        participating administrative entity, as applicable, shall 
        identify the reasons for any final decision under this 
        paragraph.
            (C) Review process.--The Secretary shall establish an 
        administrative review process to appeal any final decision 
        under this paragraph.
    (c) Final Determination.--Any final determination under this 
section shall not be subject to judicial review.
    (d) Displaced Tenants.--Subject to the availability of amounts 
provided in advance in appropriations Acts, for any low-income tenant 
that is residing in a project or receiving assistance under section 8 
of the United States Housing Act of 1937 at the time of rejection under 
this section, that tenant shall be provided with tenant-based 
assistance and reasonable moving expenses, as determined by the 
Secretary.
    (e) Transfer of Property.--For properties disqualified from the 
consideration of a mortgage restructuring and rental assistance 
sufficiency plan under this section in accordance with paragraph (1) or 
(2) of subsection (a) because of actions by an owner or purchaser, the 
Secretary shall establish procedures to facilitate the voluntary sale 
or transfer of a property as part of a mortgage restructuring and 
rental assistance sufficiency plan, with a preference for tenant 
organizations and tenant-endorsed community-based nonprofit and public 
agency purchasers meeting such reasonable qualifications as may be 
established by the Secretary.

SEC. 517. RESTRUCTURING TOOLS.

    (a) Mortgage Restructuring.--
        (1) In this subtitle, an approved mortgage restructuring and 
    rental assistance sufficiency plan shall include restructuring 
    mortgages in accordance with this subsection to provide--
            (A) a restructured or new first mortgage that is 
        sustainable at rents at levels that are established in section 
        514(g); and
            (B) a second mortgage that is in an amount equal to no more 
        than the difference between the restructured or new first 
        mortgage and the indebtedness under the existing insured 
        mortgage immediately before it is restructured or refinanced, 
        provided that the amount of the second mortgage shall be in an 
        amount that the Secretary or participating administrative 
        entity determines can reasonably be expected to be repaid.
        (2) The second mortgage shall bear interest at a rate not to 
    exceed the applicable Federal rate as defined in section 1274(d) of 
    the Internal Revenue Code of 1986. The term of the second mortgage 
    shall be equal to the term of the restructured or new first 
    mortgage.
        (3) Payments on the second mortgage shall be deferred when the 
    first mortgage remains outstanding, except to the extent there is 
    excess project income remaining after payment of all reasonable and 
    necessary operating expenses (including deposits in a reserve for 
    replacement), debt service on the first mortgage, and any other 
    expenditures approved by the Secretary. At least 75 percent of any 
    excess project income shall be applied to payments on the second 
    mortgage, and the Secretary or the participating administrative 
    entity may permit up to 25 percent to be paid to the project owner 
    if the Secretary or participating administrative entity determines 
    that the project owner meets benchmarks for management and housing 
    quality.
        (4) The full amount of the second mortgage shall be immediately 
    due and payable if--
            (A) the first mortgage is terminated or paid in full, 
        except as otherwise provided by the holder of the second 
        mortgage;
            (B) the project is purchased and the second mortgage is 
        assumed by any subsequent purchaser in violation of guidelines 
        established by the Secretary; or
            (C) the Secretary provides notice to the project owner that 
        such owner has failed to materially comply with any 
        requirements of this section or the United States Housing Act 
        of 1937 as those requirements apply to the project, with a 
        reasonable opportunity for such owner to cure such failure.
        (5) The Secretary may modify the terms or forgive all or part 
    of the second mortgage if the Secretary holds the second mortgage 
    and if the project is acquired by a tenant organization or tenant-
    endorsed community-based nonprofit or public agency, pursuant to 
    guidelines established by the Secretary.
    (b) Restructuring Tools.--In addition to the requirements of 
subsection (a) and to the extent these actions are consistent with this 
section and with the control of the Secretary of applicable accounts in 
the Treasury of the United States, an approved mortgage restructuring 
and rental assistance sufficiency plan under this subtitle may include 
one or more of the following actions:
        (1) Full or partial payment of claim.--making a full payment of 
    claim or partial payment of claim under section 541(b) of the 
    National Housing Act, as amended by section 523(b) of this Act. Any 
    payment under this paragraph shall not require the approval of a 
    mortgagee;
        (2) Refinancing of debt.--refinancing of all or part of the 
    debt on a project. If the refinancing involves a mortgage that will 
    continue to be insured under the National Housing Act, the 
    refinancing shall be documented through amendment of the existing 
    insurance contract and not through a new insurance contract;
        (3) Mortgage insurance.--providing FHA multifamily mortgage 
    insurance, reinsurance or other credit enhancement alternatives, 
    including multifamily risk-sharing mortgage programs, as provided 
    under section 542 of the Housing and Community Development Act of 
    1992. Any limitations on the number of units available for mortgage 
    insurance under section 542 shall not apply to eligible multifamily 
    housing projects. Any credit subsidy costs of providing mortgage 
    insurance shall be paid from the Liquidating Accounts of the 
    General Insurance Fund or the Special Risk Insurance Fund and shall 
    not be subject to any limitation on appropriations;
        (4) Credit enhancement.--providing any additional State or 
    local mortgage credit enhancements and risk-sharing arrangements 
    that may be established with State or local housing finance 
    agencies, the Federal Housing Finance Board, the Federal National 
    Mortgage Association, and the Federal Home Loan Mortgage 
    Corporation, to a modified or refinanced first mortgage;
        (5) Compensation of third parties.--consistent with the 
    portfolio restructuring agreement, entering into agreements, 
    incurring costs, or making payments, including incentive agreements 
    designed to reward superior performance in meeting the purposes of 
    this Act, as may be reasonably necessary, to compensate the 
    participation of participating administrative entities and other 
    parties in undertaking actions authorized by this subtitle. Upon 
    request to the Secretary, participating administrative entities 
    that are qualified under the United States Housing Act of 1937 to 
    serve as contract administrators shall be the contract 
    administrators under section 8 of the United States Housing Act of 
    1937 for purposes of any contracts entered into as part of an 
    approved mortgage restructuring and rental assistance sufficiency 
    plan. Subject to the availability of amounts provided in advance in 
    appropriations Acts for administrative fees under section 8 of the 
    United States Housing Act of 1937, such amounts may be used to 
    compensate participating administrative entities for compliance 
    monitoring costs incurred under section 519;
        (6) Use of project accounts.--applying any residual receipts, 
    replacement reserves, and any other project accounts not required 
    for project operations, to maintain the long-term affordability and 
    physical condition of the property or of other eligible multifamily 
    housing projects. The participating administrative entity may 
    expedite the acquisition of residual receipts, replacement 
    reserves, or other such accounts, by entering into agreements with 
    owners of housing covered by an expiring contract to provide an 
    owner with a share of the receipts, not to exceed 10 percent, in 
    accordance with guidelines established by the Secretary; and
        (7) Rehabilitation needs.--
            (A) In general.--Rehabilitation may be paid from the 
        residual receipts, replacement reserves, or any other project 
        accounts not required for project operations, or, as provided 
        in appropriations Acts and subject to the control of the 
        Secretary of applicable accounts in the Treasury of the United 
        States, from budget authority provided for increases in the 
        budget authority for assistance contracts under section 8 of 
        the United States Housing Act of 1937, the rehabilitation grant 
        program established under section 236 of the National Housing 
        Act, as amended by section 531 of subtitle B of this Act, or 
        through the debt restructuring transaction. Rehabilitation 
        under this paragraph shall only be for the purpose of restoring 
        the project to a non-luxury standard adequate for the rental 
        market intended at the original approval of the project-based 
        assistance.
            (B) Contribution.--Each owner or purchaser of a project to 
        be rehabilitated under an approved mortgage restructuring and 
        rental assistance sufficiency plan shall contribute, from non-
        project resources, not less than 25 percent of the amount of 
        rehabilitation assistance received, except that the 
        participating administrative entity may provide an exception 
        from the requirement of this subparagraph for housing 
        cooperatives.
    (c) Role of FNMA and FHLMC.--Section 1335 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565) 
is amended--
        (1) in paragraph (3), by striking ``and'' at the end;
        (2) paragraph (4), by striking the period at the end and 
    inserting ``; and'';
        (3) by striking ``To meet'' and inserting the following:
    ``(a) In General.--To meet''; and
        (4) by adding at the end the following:
        ``(5) assist in maintaining the affordability of assisted units 
    in eligible multifamily housing projects with expiring contracts, 
    as defined under the Multifamily Assisted Housing Reform and 
    Affordability Act of 1997.
    ``(b) Affordable Housing Goals.--Actions taken under subsection 
(a)(5) shall constitute part of the contribution of each entity in 
meeting its affordable housing goals under sections 1332, 1333, and 
1334 for any fiscal year, as determined by the Secretary.''.
    (d) Prohibition on Equity Sharing by the Secretary.--The Secretary 
is prohibited from participating in any equity agreement or profit-
sharing agreement in conjunction with any eligible multifamily housing 
project.
    (e) Conflict of Interest Guidelines.--The Secretary may establish 
guidelines to prevent conflicts of interest by a participating 
administrative entity that provides, directly or through risk-sharing 
arrangements, any form of credit enhancement or financing pursuant to 
subsections (b)(3) or (b)(4) or to prevent conflicts of interest by any 
other person or entity under this subtitle.

SEC. 518. MANAGEMENT STANDARDS.

    Each participating administrative entity shall establish management 
standards, including requirements governing conflicts of interest 
between owners, managers, contractors with an identity of interest, 
pursuant to guidelines established by the Secretary and consistent with 
industry standards.

SEC. 519. MONITORING OF COMPLIANCE.

    (a) Compliance Agreements.--(1) Pursuant to regulations issued by 
the Secretary under section 522(a), each participating administrative 
entity, through binding contractual agreements with owners and 
otherwise, shall ensure long-term compliance with the provisions of 
this subtitle. Each agreement shall, at a minimum, provide for--
        (A) enforcement of the provisions of this subtitle; and
        (B) remedies for the breach of those provisions.
    (2) If the participating administrative entity is not qualified 
under the United States Housing Act of 1937 to be a section 8 contract 
administrator or fails to perform its duties under the portfolio 
restructuring agreement, the Secretary shall have the right to enforce 
the agreement.
    (b) Periodic Monitoring.--
        (1) In general.--Not less than annually, each participating 
    administrative entity that is qualified to be the section 8 
    contract administrator shall review the status of all multifamily 
    housing projects for which a mortgage restructuring and rental 
    assistance sufficiency plan has been implemented.
        (2) Inspections.--Each review under this subsection shall 
    include onsite inspection to determine compliance with housing 
    codes and other requirements as provided in this subtitle and the 
    portfolio restructuring agreements.
        (3) Administration.--If the participating administrative entity 
    is not qualified under the United States Housing Act of 1937 to be 
    a section 8 contract administrator, either the Secretary or a 
    qualified State or local housing agency shall be responsible for 
    the review required by this subsection.
    (c) Audit by the Secretary.--The Comptroller General of the United 
States, the Secretary, and the Inspector General of the Department of 
Housing and Urban Development may conduct an audit at any time of any 
multifamily housing project for which a mortgage restructuring and 
rental assistance sufficiency plan has been implemented.

SEC. 520. REPORTS TO CONGRESS.

    (a) Annual Review.--In order to ensure compliance with this 
subtitle, the Secretary shall conduct an annual review and report to 
the Congress on actions taken under this subtitle and the status of 
eligible multifamily housing projects.
    (b) Semiannual Review.--Not less than semiannually during the 2-
year period beginning on the date of the enactment of this Act and not 
less than annually thereafter, the Secretary shall submit reports to 
the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate stating, for such periods, the total number of 
projects identified by participating administrative entities under each 
of clauses (i) and (ii) of section 515(c)(2)(C).

SEC. 521. GAO AUDIT AND REVIEW.

    (a) Initial Audit.--Not later than 18 months after the effective 
date of final regulations promulgated under this subtitle, the 
Comptroller General of the United States shall conduct an audit to 
evaluate eligible multifamily housing projects and the implementation 
of mortgage restructuring and rental assistance sufficiency plans.
    (b) Report.--
        (1) In general.--Not later than 18 months after the audit 
    conducted under subsection (a), the Comptroller General of the 
    United States shall submit to Congress a report on the status of 
    eligible multifamily housing projects and the implementation of 
    mortgage restructuring and rental assistance sufficiency plans.
        (2) Contents.--The report submitted under paragraph (1) shall 
    include--
            (A) a description of the initial audit conducted under 
        subsection (a); and
            (B) recommendations for any legislative action to increase 
        the financial savings to the Federal Government of the 
        restructuring of eligible multifamily housing projects balanced 
        with the continued availability of the maximum number of 
        affordable low-income housing units.

SEC. 522. REGULATIONS.

    (a) Rulemaking and Implementation.--
        (1) Interim regulations.--The Director shall issue such interim 
    regulations as may be necessary to implement this subtitle and the 
    amendments made by this subtitle with respect to eligible 
    multifamily housing projects covered by contracts described in 
    section 512(2)(B) that expire in fiscal year 1999 or thereafter. 
    If, before the expiration of such period, the Director has not been 
    appointed, the Secretary shall issue such interim regulations.
        (2) Final regulations.--The Director shall issue final 
    regulations necessary to implement this subtitle and the amendments 
    made by this subtitle with respect to eligible multifamily housing 
    projects covered by contracts described in section 512(2)(B) that 
    expire in fiscal year 1999 or thereafter before the later of: (A) 
    the expiration of the 12-month period beginning upon the date of 
    the enactment of this Act; and (B) the 3-month period beginning 
    upon the appointment of the Director under subtitle D.
        (3) Factors for consideration.--Before the publication of the 
    final regulations under paragraph (2), in addition to public 
    comments invited in connection with publication of the interim 
    rule, the Secretary shall--
            (A) seek recommendations on the implementation of sections 
        513(b) and 515(c)(1) from organizations repre- senting--
                (i) State housing finance agencies and local housing 
            agencies;
                (ii) other potential participating administering 
            entities;
                (iii) tenants;
                (iv) owners and managers of eligible multifamily 
            housing projects;
                (v) States and units of general local government; and
                (vi) qualified mortgagees; and
            (B) convene not less than 3 public forums at which the 
        organizations making recommendations under subparagraph (A) may 
        express views concerning the proposed disposition of the 
        recommendations.
    (b) Transition Provision for Contracts Expiring in Fiscal Year 
1998.--Notwithstanding any other provision of law, the Secretary shall 
apply all the terms of section 211 and section 212 of the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997 (except for section 212(h)(1)(G) and 
the limitation in section 212(k)) contracts for project-based 
assistance that expire during fiscal year 1998 (in the same manner that 
such provisions apply to expiring contracts defined in section 
212(a)(3) of such Act), except that section 517(a) of the Act shall 
apply to mortgages on projects subject to such contracts.

SEC. 523. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Calculation of Limit on Project-Based Assistance.--Section 8(d) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)) is 
amended by adding at the end the following:
        ``(5) Calculation of limit.--Any contract entered into under 
    section 514 of the Multifamily Assisted Housing Reform and 
    Affordability Act of 1997 shall be excluded in computing the limit 
    on project-based assistance under this subsection.''.
    (b) Partial Payment of Claims on Multifamily Housing Projects.--
Section 541 of the National Housing Act (12 U.S.C. 1735f-19) is 
amended--
        (1) in subsection (a), in the subsection heading, by striking 
    ``Authority'' and inserting ``Defaulted Mortgages'';
        (2) by redesignating subsection (b) as subsection (c); and
        (3) by inserting after subsection (a) the following:
    ``(b) Existing Mortgages.--Notwithstanding any other provision of 
law, the Secretary, in connection with a mortgage restructuring under 
section 514 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997, may make a one time, nondefault partial 
payment of the claim under the mortgage insurance contract, which shall 
include a determination by the Secretary or the participating 
administrative entity, in accordance with the Multifamily Assisted 
Housing Reform and Affordability Act of 1997, of the market value of 
the project and a restructuring of the mortgage, under such terms and 
conditions as are permitted by section 517(a) of such Act.''.
    (c) Reuse and Rescission of Certain Recaptured Budget Authority.--
Section 8(bb) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(bb)) is amended--
        (1) by inserting after ``(bb)'' the following:
    ``Transfer, Reuse, and Rescission of Budget Authority.--
        ``(1)''; and
        (2) by inserting the following new paragraph at the end:
        ``(2) Reuse and rescission of certain recaptured budget 
    authority.--Notwithstanding paragraph (1), if a project-based 
    assistance contract for an eligible multifamily housing project 
    subject to actions authorized under title I is terminated or 
    amended as part of restructuring under section 517 of the 
    Multifamily Assisted Housing Reform and Affordability Act of 1997, 
    the Secretary shall recapture the budget authority not required for 
    the terminated or amended contract and use such amounts as are 
    necessary to provide housing assistance for the same number of 
    families covered by such contract for the remaining term of such 
    contract, under a contract providing for project-based or tenant-
    based assistance. The amount of budget authority saved as a result 
    of the shift to project-based or tenant-based assistance shall be 
    rescinded.''.
    (d) Section 8 Contract Renewals.--Section 405(a) of the Balanced 
Budget Downpayment Act, I (42 U.S.C. 1437f note) is amended by striking 
``For'' and inserting ``Notwithstanding part 24 of title 24 of the Code 
of Federal Regulations, for''.
    (e) Renewal Upon Request of Owner.--Section 211(b)(3) of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997 (Public Law 104-204; 110 
Stat. 2896) is amended--
        (1) by striking the paragraph heading and inserting the 
    following:
        ``(3) Exemption of certain other projects.--''; and
        (2) by striking ``section 202 projects, section 811 projects 
    and section 515 projects'' and inserting ``section 202 projects, 
    section 515 projects, projects with contracts entered into pursuant 
    to section 441 of the Stewart B. McKinney Homeless Assistance Act, 
    and projects with rents that exceed 100 percent of fair market rent 
    for the market area, but that are less than rents for comparable 
    projects''.
    (f) Extension of Demonstration Contract Period.--Section 212(g) of 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 (Public Law 104-204) 
is amended--
        (1) by inserting ``(1)'' after ``(g)'';
        (2) by inserting before the period at the end the following: 
    ``or in paragraph (2)''; and
        (3) by adding at the end the following:
    ``(2) The Secretary may renew a demonstration contract for an 
additional period of not to exceed 120 days, if--
        ``(A) the contract was originally executed before February 1, 
    1997, and the Secretary determines, in the sole discretion of the 
    Secretary, that the renewal period for the contract needs to exceed 
    1 year, due to delay of publication of the Secretary's 
    demonstration program guidelines until January 23, 1997 (not to 
    exceed 21 projects); or
        ``(B) the contract was originally executed before October 1, 
    1997, in connection with a project that has been identified for 
    restructuring under the joint venture approach described in section 
    VII.B.2. of the Secretary's demonstration program guidelines, and 
    the Secretary determines, in the sole discretion of the Secretary, 
    that the renewal period for the contract needs to exceed 1 year, 
    due to delay in implementation of the joint venture agreement 
    required by the guidelines (not to exceed 25 projects).''.

SEC. 524. SECTION 8 CONTRACT RENEWALS.

    (a) Section 8 Contract Renewal Authority.--
        (1)  In general.--Notwithstanding part 24 of title 24 of the 
    Code of Federal Regulations and subject to section 516 of this 
    subtitle, for fiscal year 1999 and henceforth, the Secretary may 
    use amounts available for the renewal of assistance under section 8 
    of the United States Housing Act of 1937, upon termination or 
    expiration of a contract for assistance under section 8 (other than 
    a contract for tenant-based assistance and notwithstanding section 
    8(v) of such Act for loan management assistance), to provide 
    assistance under section 8 of such Act at rent levels that do not 
    exceed comparable market rents for the market area. The assistance 
    shall be provided in accordance with terms and conditions 
    prescribed by the Secretary.
        (2) Exception projects.--Notwithstanding paragraph (1), upon 
    the request of the owner, the Secretary shall renew an expiring 
    contract in accordance with terms and conditions prescribed by the 
    Secretary at the lesser of: (i) existing rents, adjusted by an 
    operating cost adjustment factor established by the Secretary; (ii) 
    a level that provides income sufficient to support a budget-based 
    rent (including a budget-based rent adjustment if justified by 
    reasonable and expected operating expenses); or (iii) in the case 
    of a contract under the moderate rehabilitation program, other than 
    a moderate rehabilitation contract under section 441 of the Stewart 
    B. McKinney Homeless Assistance Act, the base rent adjusted by an 
    operating cost adjustment factor established by the Secretary, for 
    the following categories of multifamily housing projects--
            (A) projects for which the primary financing or mortgage 
        insurance was provided by a unit of State government or a unit 
        of general local government (or an agency or instrumentality of 
        either) and is not insured under the National Housing Act;
            (B) projects for which the primary financing was provided 
        by a unit of State government or a unit or general local 
        government (or an agency or instrumentality of either) and the 
        financing involves mortgage insurance under the National 
        Housing Act, such that the implementation of a mortgage 
        restructuring and rental assistance sufficiency plan under this 
        Act is in conflict with applicable law or agreements governing 
        such financing;
            (C) projects financed under section 202 of the Housing Act 
        of 1959 or section 515 of the Housing Act of 1949;
            (D) projects that have an expiring contract under section 8 
        of the United States Housing Act of 1937 pursuant to section 
        441 of the Stewart B. McKinney Homeless Assistance Act; and
            (E) projects that do not qualify as eligible multifamily 
        housing projects pursuant to section 512(2) of this subtitle.

                  Subtitle B--Miscellaneous Provisions

SEC. 531. REHABILITATION GRANTS FOR CERTAIN INSURED PROJECTS.

    Section 236 of the National Housing Act (12 U.S.C. 1715z-1) is 
amended by adding at the end the following:
    ``(s) Grant Authority.--
        ``(1) In general.--The Secretary may make grants for the 
    capital costs of rehabilitation to owners of projects that meet the 
    eligibility and other criteria set forth in, and in accordance 
    with, this subsection.
        ``(2) Project eligibility.--A project may be eligible for 
    capital grant assistance under this subsection--
            ``(A) if--
                ``(i) the project is or was insured under any provision 
            of title II of the National Housing Act;
                ``(ii) the project was assisted under section 8 of the 
            United States Housing Act of 1937 on the date of enactment 
            of the Multifamily Assisted Housing Reform and 
            Affordability Act of 1997; and
                ``(iii) the project mortgage was not held by a State 
            agency as of the date of enactment of the Multifamily 
            Assisted Housing Reform and Affordability Act of 1997;
            ``(B) if the project owner agrees to maintain the housing 
        quality standards as required by the Secretary;
            ``(C)(i) if the Secretary determines that the owner or 
        purchaser of the project has not engaged in material adverse 
        financial or managerial actions or omissions with regard to 
        such project; or
            ``(ii) if the Secretary elects to make such determination, 
        that the owner or purchaser of the project has not engaged in 
        material adverse financial or managerial actions or omissions 
        with regard to other projects of such owner or purchaser that 
        are federally assisted or financed with a loan from, or 
        mortgage insured or guaranteed by, an agency of the Federal 
        Government;
            ``(iii) material adverse financial or managerial actions or 
        omissions, as the terms are used in this subparagraph, 
        include--
                ``(I) materially violating any Federal, State, or local 
            law or regulation with regard to this project or any other 
            federally assisted project, after receipt of notice and an 
            opportunity to cure;
                ``(II) materially breaching a contract for assistance 
            under section 8 of the United States Housing Act of 1937, 
            after receipt of notice and an opportunity to cure;
                ``(III) materially violating any applicable regulatory 
            or other agreement with the Secretary or a participating 
            administrative entity, after receipt of notice and an 
            opportunity to cure;
                ``(IV) repeatedly failing to make mortgage payments at 
            times when project income was sufficient to maintain and 
            operate the property;
                ``(V) materially failing to maintain the property 
            according to housing quality standards after receipt of 
            notice and a reasonable opportunity to cure; or
                ``(VI) committing any act or omission that would 
            warrant suspension or debarment by the Secretary; and
            ``(iv) the term `owner' as used in this subparagraph, in 
        addition to it having the same meaning as in section 8(f) of 
        the United States Housing Act of 1937, also means an affiliate 
        of the owner; the term `purchaser' as used in this subsection 
        means any private person or entity, including a cooperative, an 
        agency of the Federal Government, or a public housing agency, 
        that, upon purchase of the project, would have the legal right 
        to lease or sublease dwelling units in the project, and also 
        means an affiliate of the purchaser; the terms `affiliate of 
        the owner' and `affiliate of the purchaser' means any person or 
        entity (including, but not limited to, a general partner or 
        managing member, or an officer of either) that controls an 
        owner or purchaser, is controlled by an owner or purchaser, or 
        is under common control with the owner or purchaser; the term 
        `control' means the direct or indirect power (under contract, 
        equity ownership, the right to vote or determine a vote, or 
        otherwise) to direct the financial, legal, beneficial or other 
        interests of the owner or purchaser; and
            ``(D) if the project owner demonstrates to the satisfaction 
        of the Secretary--
                ``(i) using information in a comprehensive needs 
            assessment, that capital grant assistance is needed for 
            rehabilitation of the project; and
                ``(ii) that project income is not sufficient to support 
            such rehabilitation.
        ``(3) Eligible purposes.--The Secretary may make grants to the 
    owners of eligible projects for the purposes of--
            ``(A) payment into project replacement reserves;
            ``(B) debt service payments on non-Federal rehabilitation 
        loans; and
            ``(C) payment of nonrecurring maintenance and capital 
        improvements, under such terms and conditions as are determined 
        by the Secretary.
        ``(4) Grant agreement.--
            ``(A) In general.--The Secretary shall provide in any grant 
        agreement under this subsection that the grant shall be 
        terminated if the project fails to meet housing quality 
        standards, as applicable on the date of enactment of the 
        Multifamily Assisted Housing Reform and Affordability Act of 
        1997, or any successor standards for the physical conditions of 
        projects, as are determined by the Secretary.
            ``(B) Affordability and use clauses.--The Secretary shall 
        include in a grant agreement under this subsection a 
        requirement for the project owners to maintain such 
        affordability and use restrictions as the Secretary determines 
        to be appropriate.
            ``(C) Other terms.--The Secretary may include in a grant 
        agreement under this subsection such other terms and conditions 
        as the Secretary determines to be necessary.
        ``(5) Delegation.--
            ``(A) In general.--In addition to the authorities set forth 
        in subsection (p), the Secretary may delegate to State and 
        local governments the responsibility for the administration of 
        grants under this subsection. Any such government may carry out 
        such delegated responsibilities directly or under contracts.
            ``(B) Administration costs.--In addition to other eligible 
        purposes, amounts of grants under this subsection may be made 
        available for costs of administration under subparagraph (A).
        ``(6) Funding.--
            ``(A) In general.--For purposes of carrying out this 
        subsection, the Secretary may make available amounts that are 
        unobligated amounts for contracts for interest reduction 
        payments--
                ``(i) that were previously obligated for contracts for 
            interest reduction payments under this section until the 
            insured mortgage under this section was extinguished;
                ``(ii) that become available as a result of the 
            outstanding principal balance of a mortgage having been 
            written down;
                ``(iii) that are uncommitted balances within the 
            limitation on maximum payments that may have been, before 
            the date of enactment of the Multifamily Assisted Housing 
            Reform and Affordability Act of 1997, permitted in any 
            fiscal year; or
                ``(iv) that become available from any other source.
            ``(B) Liquidation authority.--The Secretary may liquidate 
        obligations entered into under this subsection under section 
        1305(10) of title 31, United States Code.
            ``(C) Capital grants.--In making capital grants under the 
        terms of this subsection, using the amounts that the Secretary 
        has recaptured from contracts for interest reduction payments, 
        the Secretary shall ensure that the rates and amounts of 
        outlays do not at any time exceed the rates and amounts of 
        outlays that would have been experienced if the insured 
        mortgage had not been extinguished or the principal amount had 
        not been written down, and the interest reduction payments that 
        the Secretary has recaptured had continued in accordance with 
        the terms in effect immediately prior to such extinguishment or 
        write-down.''.

SEC. 532. GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR MULTIFAMILY 
              HOUSING PROJECTS.

    Not later than the expiration of the 18-month period beginning on 
the date of the enactment of this Act, the Comptroller General of the 
United States shall submit a report to the Congress analyzing--
        (1) the housing projects for which project-based assistance is 
    provided under section 8 of the United States Housing Act of 1937, 
    but which are not subject to a mortgage insured or held by the 
    Secretary under the National Housing Act;
        (2) how State and local housing finance agencies have benefited 
    financially from the rental assistance program under section 8 of 
    the United States Housing Act of 1937, including any benefits from 
    fees, bond financings, and mortgage refinancings; and
        (3) the extent and effectiveness of State and local housing 
    finance agencies oversight of the physical and financial management 
    and condition of multifamily housing projects for which project-
    based assistance is provided under section 8 of the United States 
    Housing Act of 1937.

                   Subtitle C--Enforcement Provisions

SEC. 541. IMPLEMENTATION.

    (a) Issuance of Necessary Regulations.--Notwithstanding section 
7(o) of the Department of Housing and Urban Development Act or part 10 
of title 24, Code of Federal Regulations (as in existence on the date 
of enactment of this Act), the Secretary shall issue such regulations 
as the Secretary determines to be necessary to implement this subtitle 
and the amendments made by this subtitle in accordance with section 552 
or 553 of title 5, United States Code, as determined by the Secretary.
    (b) Use of Existing Regulations.--In implementing any provision of 
this subtitle, the Secretary may, in the discretion of the Secretary, 
provide for the use of existing regulations to the extent appropriate, 
without rulemaking.

SEC. 542. INCOME VERIFICATION.

    (a) Reinstitution of Requirements Regarding HUD Access to Certain 
Information of State Agencies.--
        (1) In general.--Section 303(i) of the Social Security Act is 
    amended by striking paragraph (5).
        (2) Effective date.--The amendment made by this subsection 
    shall apply to any request for information made after the date of 
    the enactment of this Act.
    (b) Repeal of Termination Regarding Housing Assistance Programs.--
Section 6103(l)(7)(D) of the Internal Revenue Code of 1986 is amended 
by striking the last sentence.

           Part 1--FHA Single Family and Multifamily Housing

SEC. 551. AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES.

    Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 
1708(c)(3)(C)) is amended by inserting after the first sentence the 
following: ``Notwithstanding paragraph (4)(A), a suspension shall be 
effective upon issuance by the Board if the Board determines that there 
exists adequate evidence that immediate action is required to protect 
the financial interests of the Department or the public.''.

SEC. 552. EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY AND 
              MULTIFAMILY HOUSING PROGRAMS.

    Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is 
amended to read as follows:

``SEC. 254. EQUITY SKIMMING PENALTY.

    ``(a) In General.--Whoever, as an owner, agent, or manager, or who 
is otherwise in custody, control, or possession of a multifamily 
project or a 1- to 4-family residence that is security for a mortgage 
note that is described in subsection (b), willfully uses or authorizes 
the use of any part of the rents, assets, proceeds, income, or other 
funds derived from property covered by that mortgage note for any 
purpose other than to meet reasonable and necessary expenses that 
include expenses approved by the Secretary if such approval is 
required, in a period during which the mortgage note is in default or 
the project is in a nonsurplus cash position, as defined by the 
regulatory agreement covering the property, or the mortgagor has failed 
to comply with the provisions of such other form of regulatory control 
imposed by the Secretary, shall be fined not more than $500,000, 
imprisoned not more than 5 years, or both.
    ``(b) Mortgage Notes Described.--For purposes of subsection (a), a 
mortgage note is described in this subsection if it--
        ``(1) is insured, acquired, or held by the Secretary pursuant 
    to this Act;
        ``(2) is made pursuant to section 202 of the Housing Act of 
    1959 (including property still subject to section 202 program 
    requirements that existed before the date of enactment of the 
    Cranston-Gonzalez National Affordable Housing Act); or
        ``(3) is insured or held pursuant to section 542 of the Housing 
    and Community Development Act of 1992, but is not reinsured under 
    section 542 of the Housing and Community Development Act of 
    1992.''.

SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER 
              PARTICIPANTS IN FHA PROGRAMS.

    (a) Change to Section Title.--Section 536 of the National Housing 
Act (12 U.S.C. 1735f-14) is amended by striking the section heading and 
the section designation and inserting the following:

``SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND 
              OTHER PARTICIPANTS IN FHA PROGRAMS.''.

    (b) Expansion of Persons Eligible for Penalty.--Section 536(a) of 
the National Housing Act (12 U.S.C. 1735f-14(a)) is amended--
        (1) in paragraph (1), by striking the first sentence and 
    inserting the following: ``If a mortgagee approved under the Act, a 
    lender holding a contract of insurance under title I, or a 
    principal, officer, or employee of such mortgagee or lender, or 
    other person or entity participating in either an insured mortgage 
    or title I loan transaction under this Act or providing assistance 
    to the borrower in connection with any such loan, including sellers 
    of the real estate involved, borrowers, closing agents, title 
    companies, real estate agents, mortgage brokers, appraisers, loan 
    correspondents and dealers, knowingly and materially violates any 
    applicable provision of subsection (b), the Secretary may impose a 
    civil money penalty on the mortgagee or lender, or such other 
    person or entity, in accordance with this section. The penalty 
    under this paragraph shall be in addition to any other available 
    civil remedy or any available criminal penalty, and may be imposed 
    whether or not the Secretary imposes other administrative 
    sanctions.''; and
        (2) in paragraph (2)--
            (A) in the first sentence, by inserting ``or such other 
        person or entity'' after ``lender''; and
            (B) in the second sentence, by striking ``provision'' and 
        inserting ``the provisions''.
    (c) Additional Violations for Mortgagees, Lenders, and Other 
Participants in FHA Programs.--Section 536(b) of the National Housing 
Act (12 U.S.C. 1735f-14(b)) is amended--
        (1) by redesignating paragraph (2) as paragraph (3);
        (2) by inserting after paragraph (1) the following:
        ``(2) The Secretary may impose a civil money penalty under 
    subsection (a) for any knowing and material violation by a 
    principal, officer, or employee of a mortgagee or lender, or other 
    participants in either an insured mortgage or title I loan 
    transaction under this Act or provision of assistance to the 
    borrower in connection with any such loan, including sellers of the 
    real estate involved, borrowers, closing agents, title companies, 
    real estate agents, mortgage brokers, appraisers, loan 
    correspondents, and dealers for--
            ``(A) submission to the Secretary of information that was 
        false, in connection with any mortgage insured under this Act, 
        or any loan that is covered by a contract of insurance under 
        title I of this Act;
            ``(B) falsely certifying to the Secretary or submitting to 
        the Secretary a false certification by another person or 
        entity; or
            ``(C) failure by a loan correspondent or dealer to submit 
        to the Secretary information which is required by regulations 
        or directives in connection with any loan that is covered by a 
        contract of insurance under title I.''; and
        (3) in paragraph (3), as redesignated, by striking ``or 
    paragraph (1)(F)'' and inserting ``or (F), or paragraph (2)(A), 
    (B), or (C)''.
    (d) Conforming and Technical Amendments.--Section 536 of the 
National Housing Act (12 U.S.C. 1735f-14) is amended--
        (1) in subsection (c)(1)(B), by inserting after ``lender'' the 
    following: ``or such other person or entity'';
        (2) in subsection (d)(1)--
            (A) by inserting ``or such other person or entity'' after 
        ``lender''; and
            (B) by striking ``part 25'' and inserting ``parts 24 and 
        25''; and
        (3) in subsection (e), by inserting ``or such other person or 
    entity'' after ``lender'' each place that term appears.

                   Part 2--FHA Multifamily Provisions

SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, 
              DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY 
              PROJECTS.

    (a) Civil Money Penalties Against Multifamily Mortgagors.--Section 
537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--
        (1) in subsection (b)(1), by striking ``on that mortgagor'' and 
    inserting ``on that mortgagor, on a general partner of a 
    partnership mortgagor, or on any officer or director of a corporate 
    mortgagor'';
        (2) in subsection (c)--
            (A) by striking the subsection heading and inserting the 
        following:
    ``(c) Other Violations.--''; and
            (B) in paragraph (1)--
                (i) by striking ``Violations.--The Secretary may'' and 
            all that follows through the colon and inserting the 
            following:
            ``(A) Liable parties.--The Secretary may also impose a 
        civil money penalty under this section on--
                ``(i) any mortgagor of a property that includes 5 or 
            more living units and that has a mortgage insured, 
            coinsured, or held pursuant to this Act;
                ``(ii) any general partner of a partnership mortgagor 
            of such property;
                ``(iii) any officer or director of a corporate 
            mortgagor;
                ``(iv) any agent employed to manage the property that 
            has an identity of interest with the mortgagor, with the 
            general partner of a partnership mortgagor, or with any 
            officer or director of a corporate mortgagor of such 
            property; or
                ``(v) any member of a limited liability company that is 
            the mortgagor of such property or is the general partner of 
            a limited partnership mortgagor or is a partner of a 
            general partnership mortgagor.
            ``(B) Violations.--A penalty may be imposed under this 
        section upon any liable party under subparagraph (A) that 
        knowingly and materially takes any of the following actions:'';
                (ii) in subparagraph (B), as designated by clause (i), 
            by redesignating the subparagraph designations (A) through 
            (L) as clauses (i) through (xii), respectively;
                (iii) by adding after clause (xii), as redesignated by 
            clause (ii), the following:
                ``(xiii) Failure to maintain the premises, 
            accommodations, any living unit in the project, and the 
            grounds and equipment appurtenant thereto in good repair 
            and condition in accordance with regulations and 
            requirements of the Secretary, except that nothing in this 
            clause shall have the effect of altering the provisions of 
            an existing regulatory agreement or federally insured 
            mortgage on the property.
                ``(xiv) Failure, by a mortgagor, a general partner of a 
            partnership mortgagor, or an officer or director of a 
            corporate mortgagor, to provide management for the project 
            that is acceptable to the Secretary pursuant to regulations 
            and requirements of the Secretary.
                ``(xv) Failure to provide access to the books, records, 
            and accounts related to the operations of the mortgaged 
            property and of the project.''; and
                (iv) in the last sentence, by deleting ``of such 
            agreement'' and inserting ``of this subsection'';
        (3) in subsection (d)--
            (A) in paragraph (1)(B), by inserting after ``mortgagor'' 
        the following: ``, general partner of a partnership mortgagor, 
        officer or director of a corporate mortgagor, or identity of 
        interest agent employed to manage the property''; and
            (B) by adding at the end the following:
        ``(5) Payment of penalty.--No payment of a civil money penalty 
    levied under this section shall be payable out of project 
    income.'';
        (4) in subsection (e)(1), by deleting ``a mortgagor'' and 
    inserting ``an entity or person'';
        (5) in subsection (f), by inserting after ``mortgagor'' each 
    place such term appears the following: ``, general partner of a 
    partnership mortgagor, officer or director of a corporate 
    mortgagor, or identity of interest agent employed to manage the 
    property'';
        (6) by striking the heading of subsection (f) and inserting the 
    following: ``Civil Money Penalties Against Multifamily Mortgagors, 
    General Partners of Partnership Mortgagors, Officers and Directors 
    of Corporate Mortgagors, and Certain Managing Agents''; and
        (7) by adding at the end the following:
    ``(k) Identity of Interest Managing Agent.--In this section, the 
terms `agent employed to manage the property that has an identity of 
interest' and `identity of interest agent' mean an entity--
        ``(1) that has management responsibility for a project;
        ``(2) in which the ownership entity, including its general 
    partner or partners (if applicable) and its officers or directors 
    (if applicable), has an ownership interest; and
        ``(3) over which the ownership entity exerts effective 
    control.''.
    (b) Implementation.--
        (1) Public comment.--The Secretary shall implement the 
    amendments made by this section by regulation issued after notice 
    and opportunity for public comment. The notice shall seek comments 
    primarily as to the definitions of the terms ``ownership interest 
    in'' and ``effective control'', as those terms are used in the 
    definition of the terms ``agent employed to manage the property 
    that has an identity of interest'' and ``identity of interest 
    agent''.
        (2) Timing.--A proposed rule implementing the amendments made 
    by this section shall be published not later than 1 year after the 
    date of enactment of this Act.
    (c) Applicability of Amendments.--The amendments made by subsection 
(a) shall apply only with respect to--
        (1) violations that occur on or after the effective date of the 
    final regulations implementing the amendments made by this section; 
    and
        (2) in the case of a continuing violation (as determined by the 
    Secretary of Housing and Urban Development), any portion of a 
    violation that occurs on or after that date.

SEC. 562. CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH SECTION 8 HAP 
              CONTRACTS.

    (a) Basic Authority.--Title I of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.) is amended--
        (1) by designating the second section designated as section 27 
    (as added by section 903(b) of Public Law 104-193 (110 Stat. 2348)) 
    as section 28; and
        (2) by adding at the end the following:

``SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.

    ``(a) In General.--
        ``(1) Effect on other remedies.--The penalties set forth in 
    this section shall be in addition to any other available civil 
    remedy or any available criminal penalty, and may be imposed 
    regardless of whether the Secretary imposes other administrative 
    sanctions.
        ``(2) Failure of secretary.--The Secretary may not impose 
    penalties under this section for a violation, if a material cause 
    of the violation is the failure of the Secretary, an agent of the 
    Secretary, or a public housing agency to comply with an existing 
    agreement.
    ``(b) Violations of Housing Assistance Payment Contracts for Which 
Penalty May Be Imposed.--
        ``(1) Liable parties.--The Secretary may impose a civil money 
    penalty under this section on--
            ``(A) any owner of a property receiving project-based 
        assistance under section 8;
            ``(B) any general partner of a partnership owner of that 
        property; and
            ``(C) any agent employed to manage the property that has an 
        identity of interest with the owner or the general partner of a 
        partnership owner of the property.
        ``(2) Violations.--A penalty may be imposed under this section 
    for a knowing and material breach of a housing assistance payments 
    contract, including the following--
            ``(A) failure to provide decent, safe, and sanitary housing 
        pursuant to section 8; or
            ``(B) knowing or willful submission of false, fictitious, 
        or fraudulent statements or requests for housing assistance 
        payments to the Secretary or to any department or agency of the 
        United States.
        ``(3) Amount of penalty.--The amount of a penalty imposed for a 
    violation under this subsection, as determined by the Secretary, 
    may not exceed $25,000 per violation.
    ``(c) Agency Procedures.--
        ``(1) Establishment.--The Secretary shall issue regulations 
    establishing standards and procedures governing the imposition of 
    civil money penalties under subsection (b). These standards and 
    procedures--
            ``(A) shall provide for the Secretary or other department 
        official to make the determination to impose the penalty;
            ``(B) shall provide for the imposition of a penalty only 
        after the liable party has received notice and the opportunity 
        for a hearing on the record; and
            ``(C) may provide for review by the Secretary of any 
        determination or order, or interlocutory ruling, arising from a 
        hearing and judicial review, as provided under subsection (d).
        ``(2) Final orders.--
            ``(A) In general.--If a hearing is not requested before the 
        expiration of the 15-day period beginning on the date on which 
        the notice of opportunity for hearing is received, the 
        imposition of a penalty under subsection (b) shall constitute a 
        final and unappealable determination.
            ``(B) Effect of review.--If the Secretary reviews the 
        determination or order, the Secretary may affirm, modify, or 
        reverse that determination or order.
            ``(C) Failure to review.--If the Secretary does not review 
        that determination or order before the expiration of the 90-day 
        period beginning on the date on which the determination or 
        order is issued, the determination or order shall be final.
        ``(3) Factors in determining amount of penalty.--In determining 
    the amount of a penalty under subsection (b), the Secretary shall 
    take into consideration--
            ``(A) the gravity of the offense;
            ``(B) any history of prior offenses by the violator 
        (including offenses occurring before the enactment of this 
        section);
            ``(C) the ability of the violator to pay the penalty;
            ``(D) any injury to tenants;
            ``(E) any injury to the public;
            ``(F) any benefits received by the violator as a result of 
        the violation;
            ``(G) deterrence of future violations; and
            ``(H) such other factors as the Secretary may establish by 
        regulation.
        ``(4) Payment of penalty.--No payment of a civil money penalty 
    levied under this section shall be payable out of project income.
    ``(d) Judicial Review of Agency Determination.--Judicial review of 
determinations made under this section shall be carried out in 
accordance with section 537(e) of the National Housing Act.
    ``(e) Remedies for Noncompliance.--
        ``(1) Judicial intervention.--
            ``(A) In general.--If a person or entity fails to comply 
        with the determination or order of the Secretary imposing a 
        civil money penalty under subsection (b), after the 
        determination or order is no longer subject to review as 
        provided by subsections (c) and (d), the Secretary may request 
        the Attorney General of the United States to bring an action in 
        an appropriate United States district court to obtain a 
        monetary judgment against that person or entity and such other 
        relief as may be available.
            ``(B) Fees and expenses.--Any monetary judgment awarded in 
        an action brought under this paragraph may, in the discretion 
        of the court, include the attorney's fees and other expenses 
        incurred by the United States in connection with the action.
        ``(2) Nonreviewability of determination or order.--In an action 
    under this subsection, the validity and appropriateness of the 
    determination or order of the Secretary imposing the penalty shall 
    not be subject to review.
    ``(f) Settlement by Secretary.--The Secretary may compromise, 
modify, or remit any civil money penalty which may be, or has been, 
imposed under this section.
    ``(g) Deposit of Penalties.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    if the mortgage covering the property receiving assistance under 
    section 8 is insured or was formerly insured by the Secretary, the 
    Secretary shall apply all civil money penalties collected under 
    this section to the appropriate insurance fund or funds established 
    under this Act, as determined by the Secretary.
        ``(2) Exception.--Notwithstanding any other provision of law, 
    if the mortgage covering the property receiving assistance under 
    section 8 is neither insured nor formerly insured by the Secretary, 
    the Secretary shall make all civil money penalties collected under 
    this section available for use by the appropriate office within the 
    Department for administrative costs related to enforcement of the 
    requirements of the various programs administered by the Secretary.
    ``(h) Definitions.--In this section--
        ``(1) the term `agent employed to manage the property that has 
    an identity of interest' means an entity--
            ``(A) that has management responsibility for a project;
            ``(B) in which the ownership entity, including its general 
        partner or partners (if applicable), has an ownership interest; 
        and
            ``(C) over which such ownership entity exerts effective 
        control; and
        ``(2) the term `knowing' means having actual knowledge of or 
    acting with deliberate ignorance of or reckless disregard for the 
    prohibitions under this section.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply only with respect to--
        (1) violations that occur on or after the effective date of 
    final regulations implementing the amendments made by this section; 
    and
        (2) in the case of a continuing violation (as determined by the 
    Secretary of Housing and Urban Development), any portion of a 
    violation that occurs on or after such date.
    (c) Implementation.--
        (1) Regulations.--
            (A) In general.--The Secretary shall implement the 
        amendments made by this section by regulation issued after 
        notice and opportunity for public comment.
            (B) Comments sought.--The notice under subparagraph (A) 
        shall seek comments as to the definitions of the terms 
        ``ownership interest in'' and ``effective control'', as such 
        terms are used in the definition of the term ``agent employed 
        to manage such property that has an identity of interest''.
        (2) Timing.--A proposed rule implementing the amendments made 
    by this section shall be published not later than 1 year after the 
    date of enactment of this Act.

SEC. 563. EXTENSION OF DOUBLE DAMAGES REMEDY.

    Section 421 of the Housing and Community Development Act of 1987 
(12 U.S.C. 1715z-4a) is amended--
        (1) in subsection (a)(1)--
            (A) in the first sentence, by striking ``Act; or (B)'' and 
        inserting the following: ``Act; (B) a regulatory agreement that 
        applies to a multifamily project whose mortgage is insured or 
        held by the Secretary under section 202 of the Housing Act of 
        1959 (including property subject to section 202 of such Act as 
        it existed before enactment of the Cranston-Gonzalez National 
        Affordable Housing Act of 1990); (C) a regulatory agreement or 
        such other form of regulatory control as may be imposed by the 
        Secretary that applies to mortgages insured or held by the 
        Secretary under section 542 of the Housing and Community 
        Development Act of 1992, but not reinsured under section 542 of 
        the Housing and Community Development Act of 1992; or (D)''; 
        and
            (B) in the second sentence, by inserting after 
        ``agreement'' the following: ``, or such other form of 
        regulatory control as may be imposed by the Secretary,'';
        (2) in subsection (a)(2), by inserting after ``Act,'' the 
    following: ``under section 202 of the Housing Act of 1959 
    (including section 202 of such Act as it existed before enactment 
    of the Cranston-Gonzalez National Affordable Housing Act of 1990) 
    and under section 542 of the Housing and Community Development Act 
    of 1992,'';
        (3) in subsection (b), by inserting after ``agreement'' the 
    following: ``, or such other form of regulatory control as may be 
    imposed by the Secretary,'';
        (4) in subsection (c)--
            (A) in the first sentence, by inserting after ``agreement'' 
        the following: ``, or such other form of regulatory control as 
        may be imposed by the Secretary,''; and
            (B) in the second sentence, by inserting before the period 
        the following: ``or, in the case of any project for which the 
        mortgage is held by the Secretary under section 202 of the 
        Housing Act of 1959 (including property subject to section 202 
        of such Act as it existed before enactment of the Cranston-
        Gonzalez National Affordable Housing Act of 1990), to the 
        project or to the Department for use by the appropriate office 
        within the Department for administrative costs related to 
        enforcement of the requirements of the various programs 
        administered by the Secretary, as appropriate''; and
        (5) in subsection (d), by inserting after ``agreement'' the 
    following: ``, or such other form of regulatory control as may be 
    imposed by the Secretary,''.

SEC. 564. OBSTRUCTION OF FEDERAL AUDITS.

    Section 1516(a) of title 18, United States Code, is amended by 
inserting after ``under a contract or subcontract,'' the following: 
``or relating to any property that is security for a mortgage note that 
is insured, guaranteed, acquired, or held by the Secretary of Housing 
and Urban Development pursuant to any Act administered by the 
Secretary,''.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

SEC. 571. ESTABLISHMENT OF OFFICE OF MULTIFAMILY HOUSING ASSISTANCE 
              RESTRUCTURING.

    There is hereby established an office within the Department of 
Housing and Urban Development, which shall be known as the Office of 
Multifamily Housing Assistance Restructuring.

SEC. 572. DIRECTOR.

    (a) Appointment.--The Office shall be under the management of a 
Director, who shall be appointed by the President by and with the 
advice and consent of the Senate, from among individuals who are 
citizens of the United States and have a demonstrated understanding of 
financing and mortgage restructuring for affordable multifamily 
housing. Not later than 60 days after the date of the enactment of this 
Act, the President shall submit to the Senate a nomination for initial 
appointment to the position of Director.
    (b) Vacancy.--A vacancy in the position of Director shall be filled 
in the manner in which the original appointment was made under 
subsection (a).
    (c) Deputy Director.--
        (1) In general.--The Office shall have a Deputy Director who 
    shall be appointed by the Director from among individuals who are 
    citizens of the United States and have a demonstrated understanding 
    of financing and mortgage restructuring for affordable multifamily 
    housing.
        (2) Functions.--The Deputy Director shall have such functions, 
    powers, and duties as the Director shall prescribe. In the event of 
    the death, resignation, sickness, or absence of the Director, the 
    Deputy Director shall serve as acting Director until the return of 
    the Director or the appointment of a successor pursuant to 
    subsection (b).

SEC. 573. DUTY AND AUTHORITY OF DIRECTOR.

    (a) Duty.--The Secretary shall, acting through the Director, 
administer the program of mortgage and rental assistance restructuring 
for eligible multifamily housing projects under subtitle A. During the 
period before the Director is appointed, the Secretary may carry out 
such program.
    (b) Authority.--The Director is authorized to make such 
determinations, take such actions, issue such regulations, and perform 
such functions assigned to the Director under law as the Director 
determines necessary to carry out such functions, subject to the review 
and approval of the Secretary. The Director shall semiannually submit a 
report to the Secretary regarding the activities, determinations, and 
actions of the Director.
    (c) Delegation of Authority.--The Director may delegate to officers 
and employees of the Office (but not to contractors, subcontractors, or 
consultants) any of the functions, powers, and duties of the Director, 
as the Director considers appropriate.
    (d) Independence in Providing Information to Congress.--
        (1) In general.--Notwithstanding subsection (a) or (b), the 
    Director shall not be required to obtain the prior approval, 
    comment, or review of any officer or agency of the United States 
    before submitting to the Congress, or any committee or subcommittee 
    thereof, any reports, recommendations, testimony, or comments if 
    such submissions include a statement indicating that the views 
    expressed therein are those of the Director and do not necessarily 
    represent the views of the Secretary or the President.
        (2) Requirement.--If the Director determines at any time that 
    the Secretary is taking or has taken any action that interferes 
    with the ability of the Director to carry out the duties of the 
    Director under this Act or that affects the administration of the 
    program under subtitle A of this Act in a manner that is 
    inconsistent with the purposes of this Act, including any proposed 
    action by the Director, in the discretion of the Director, that is 
    overruled by the Secretary, the Director shall immediately report 
    directly to the Committee on Banking and Financial Services of the 
    House of Representatives and the Committee on Banking, Housing, and 
    Urban Affairs of the Senate regarding such action. Notwithstanding 
    subsection (a) or (b), any determination or report under this 
    paragraph by the Director shall not be subject to prior review or 
    approval of the Secretary.

SEC. 574. PERSONNEL.

    (a) Office Personnel.--The Director may appoint and fix the 
compensation of such officers and employees of the Office as the 
Director considers necessary to carry out the functions of the Director 
and the Office. Officers and employees may be paid without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of title 
5, United States Code, relating to classification and General Schedule 
pay rates.
    (b) Comparability of Compensation With Federal Banking Agencies.--
In fixing and directing compensation under subsection (a), the Director 
shall consult with, and maintain comparability with compensation of 
officers and employees of the Federal Deposit Insurance Corporation.
    (c) Personnel of Other Federal Agencies.--In carrying out the 
duties of the Office, the Director may use information, services, 
staff, and facilities of any executive agency, independent agency, or 
department on a reimbursable basis, with the consent of such agency or 
department.
    (d) Outside Experts and Consultants.--The Director may procure 
temporary and intermittent services under section 3109(b) of title 5, 
United States Code.

SEC. 575. BUDGET AND FINANCIAL REPORTS.

    (a) Financial Operating Plans and Forecasts.--Before the beginning 
of each fiscal year, the Secretary shall submit a copy of the financial 
operating plans and forecasts for the Office to the Director of the 
Office of Management and Budget.
    (b) Reports of Operations.--As soon as practicable after the end of 
each fiscal year and each quarter thereof, the Secretary shall submit a 
copy of the report of the results of the operations of the Office 
during such period to the Director of the Office of Management and 
Budget.
    (c) Inclusion in President's Budget.--The annual plans, forecasts, 
and reports required under this section shall be included: (1) in the 
Budget of the United States in the appropriate form; and (2) in the 
congressional justifications of the Department of Housing and Urban 
Development for each fiscal year in a form determined by the Secretary.

SEC. 576. LIMITATION ON SUBSEQUENT EMPLOYMENT.

    Neither the Director nor any former officer or employee of the 
Office who, while employed by the Office, was compensated at a rate in 
excess of the lowest rate for a position classified higher than GS-15 
of the General Schedule under section 5107 of title 5, United States 
Code, may, during the 2-year period beginning on the date of separation 
from employment by the Office, accept compensation from any party 
(other than a Federal agency) having any financial interest in any 
mortgage restructuring and rental assistance sufficiency plan under 
subtitle A or comparable matter in which the Director or such officer 
or employee had direct participation or supervision.

SEC. 577. AUDITS BY GAO.

    The Comptroller General shall audit the operations of the Office in 
accordance with generally accepted Government auditing standards. All 
books, records, accounts, reports, files, and property belonging to, or 
used by, the Office shall be made available to the Comptroller General. 
Audits under this section shall be conducted annually for the first 2 
fiscal years following the date of the enactment of this Act and as 
appropriate thereafter.

SEC. 578. SUSPENSION OF PROGRAM BECAUSE OF FAILURE TO APPOINT DIRECTOR.

    (a) In General.--If, upon the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the initial 
appointment to the office of Director has not been made, the operation 
of the program under subtitle A shall immediately be suspended and such 
provisions shall not have any force or effect during the period that 
ends upon the making of such appointment.
    (b) Interim applicability of demonstration program.-- 
Notwithstanding any other provision of law, during the period referred 
to in subsection (a), the Secretary shall carry out sections 211 and 
212 of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997. For 
purposes of applying such sections pursuant to the authority under this 
section, the term ``expiring contract'' shall have the meaning given in 
such sections, except that such term shall also include any contract 
for project-based assistance under section 8 of the United States 
Housing Act of 1937 that expires during the period that the program is 
suspended under subsection (a).

SEC. 579. TERMINATION.

    (a) Repeal.--Subtitle A (except for section 524) and subtitle D 
(except for this section) are repealed effective October 1, 2001.
    (b) Exception.--Notwithstanding the repeal under subsection (a), 
the provisions of subtitle A (as in effect immediately before such 
repeal) shall apply with respect to projects and programs for which 
binding commitments have been entered into under this Act before 
October 1, 2001.
    (c) Termination of Director and Office.--The Office of Multifamily 
Housing Assistance Restructuring and the position of Director of such 
Office shall terminate upon September 30, 2001.
    (d) Transfer of Authority.--Effective upon the termination under 
subsection (c), any authority and responsibilities assigned to the 
Director that remain applicable after such date pursuant to subsection 
(b) are transferred to the Secretary.
    This Act may be cited as the ``Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.