[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 263 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 263

     To provide for the disposition of unoccupied and substandard 
  multifamily housing projects owned by the Secretary of Housing and 
                           Urban Development.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 Mrs. Roukema introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
     To provide for the disposition of unoccupied and substandard 
  multifamily housing projects owned by the Secretary of Housing and 
                           Urban Development.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Urban Homestead Act of 1996''.

SEC. 2. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Community development corporation.--The term 
        ``community development corporation'' means a nonprofit 
        organization whose primary purpose is to promote community 
        development by providing housing opportunities to low-income 
        families.
            (2) Cost recovery basis.--The term ``cost recovery basis'' 
        means, with respect to any sale of a project or residence by a 
        unit of general local government to a community development 
        corporation under section 3(c)(2), that the purchase price paid 
        by the community development corporation is less than or equal 
        to the costs incurred by the unit of general local government 
        in connection with such project or residence during the period 
        beginning on the date on which the unit of general local 
        government acquires title to the multifamily housing project or 
        residential property under subsection (a) and ending on the 
        date on which the sale is consummated.
            (3) Low-income families.--The term ``low-income families'' 
        has the same meaning as in section 3(b) of the United States 
        Housing Act of 1937.
            (4) Multifamily housing project.--The term ``multifamily 
        housing project'' has the same meaning as in section 203 of the 
        Housing and Community Development Amendments of 1978.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (6) Severe physical problems.--A dwelling unit shall be 
        considered to have ``severe physical problems'' if such unit--
                    (A) lacks hot or cold piped water, a flush toilet, 
                or both a bathtub and a shower in the unit, for the 
                exclusive use of that unit;
                    (B) on not less than 3 separate occasions, during 
                the preceding winter months was uncomfortably cold for 
                a period of more than 6 consecutive hours due to a 
                malfunction of the heating system for the unit;
                    (C) has no functioning electrical service, exposed 
                wiring, any room in which there is not a functioning 
                electrical outlet, or has experienced not less than 3 
                blown fuses or tripped circuit breakers during the 
                preceding 90-day period;
                    (D) is accessible through a public hallway in which 
                there are no working light fixtures, loose or missing 
                steps or railings, and no elevator; or
                    (E) has severe maintenance problems, including 
                water leaks involving the roof, windows, doors, 
                basement, or pipes or plumbing fixtures, holes or open 
                cracks in walls or ceilings, severe paint peeling or 
                broken plaster, and signs of rodent infestation.
            (7) Single family residence.--The term ``single family 
        residence'' means a 1- to 4-family dwelling that is held by the 
        Secretary.
            (8) Substandard multifamily housing project.--A multifamily 
        housing project is ``substandard'' if not less than 25 percent 
        of the dwelling units of the project have severe physical 
        problems.
            (9) Unit of general local government.--The term ``unit of 
        general local government'' has the same meaning as in section 
        102(a) of the Housing and Community Development Act of 1974.
            (10) Unoccupied multifamily housing project.--The term 
        ``unoccupied multifamily housing project'' means a multifamily 
        housing project that the unit of general local government 
        certifies in writing is not inhabited.

SEC. 3. DISPOSITION OF UNOCCUPIED AND SUBSTANDARD PUBLIC HOUSING.

    (a) Transfer of Ownership to Units of General Local Government.--
Notwithstanding section 203 of the Housing and Community Development 
Amendments of 1978 or any other provision of Federal law pertaining to 
the disposition of property, the Secretary shall transfer ownership of 
any unoccupied multifamily housing project, substandard multifamily 
housing project, or other residential property that is owned by the 
Secretary to the appropriate unit of general local government for the 
area in which the project or residence is located in accordance with 
subsection (b), if the unit of general local government enters into an 
agreement with the Secretary described in subsection (c).
    (b) Timing.--
            (1) In general.--Any transfer of ownership under subsection 
        (a) shall be completed--
                    (A) with respect to any multifamily housing project 
                owned by the Secretary that is determined to be 
                unoccupied or substandard before the date of enactment 
                of this Act, not later than 1 year after that date of 
                enactment; and
                    (B) with respect to any multifamily housing project 
                or other residential property acquired by the Secretary 
                on or after the date of enactment of this Act, not 
                later than 1 year after the date on which the project 
                is determined to be unoccupied or substandard or the 
                residence is acquired, as appropriate.
            (2) Satisfaction of indebtedness.--Prior to any transfer of 
        ownership under paragraph (1), the Secretary shall satisfy any 
        indebtedness incurred in connection with the project or 
        residence at issue, either by--
                    (A) cancellation of the indebtedness; or
                    (B) reimbursing the unit of general local 
                government to which the project or residence is 
                transferred for the amount of the indebtedness.
    (c) Sale to Community Development Corporations.--An agreement is 
described in this subsection if it is an agreement that requires a unit 
of general local government to dispose of the multifamily housing 
project or other residential property in accordance with the following 
requirements:
            (1) Notification to community development corporations.--
        Not later than 30 days after the date on which the unit of 
        general local government acquires title to the multifamily 
        housing project or other residential property under subsection 
        (a), the unit of general local government shall notify 
        community development corporations located in the State in 
        which the project or residence is located--
                    (A) of such acquisition of title; and
                    (B) that, during the 6-month period beginning on 
                the date on which such notification is made, such 
                community development corporations shall have the 
                exclusive right under this subsection to make bona fide 
                offers to purchase the project or residence on a cost 
                recovery basis.
            (2) Right of first refusal.--During the 6-month period 
        described in paragraph (1)(B)--
                    (A) the unit of general local government may not 
                sell or offer to sell the multifamily housing project 
                or other residential property other than to a party 
                notified under paragraph (1), unless each community 
                development corporation notifies the unit of general 
                local government that the corporation will not make an 
                offer to purchase the project or residence; and
                    (B) the unit of general local government shall 
                accept a bona fide offer to purchase the project or 
                residence made during such period if the offer is 
                acceptable to the unit of general local government, 
                except that a unit of general local government may not 
                sell a project or residence to a community development 
                corporation during that 6-month period other than on a 
                cost recovery basis.
            (3) Other disposition.--During the 6-month period beginning 
        on the expiration of the 6-month period described in paragraph 
        (1)(B), the unit of general local government shall dispose of 
        the multifamily housing project or other residential property 
        on a negotiated, competitive bid, or other basis, on such terms 
        as the unit of general local government deems appropriate.

SEC. 4. EXEMPTION FROM PROPERTY DISPOSITION REQUIREMENTS.

    No provision of the Multifamily Housing Property Disposition Reform 
Act of 1994, or any amendment made by that Act, shall apply to the 
disposition of property in accordance with this Act.

SEC. 5. TENANT LEASES.

    This Act shall not affect the terms or the enforceability of any 
contract or lease entered into before the date of enactment of this 
Act.

SEC. 6. PROCEDURES.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary shall establish, by rule, regulation, or order, such 
procedures as may be necessary to carry out this Act.
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