[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4194 Enrolled Bill (ENR)]

        H.R.4194

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

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


                                 An Act


 
   Making appropriations for the Departments of Veterans Affairs and 
  Housing and Urban Development, and for sundry independent agencies, 
   boards, commissions, corporations, and offices for the fiscal year 
           ending September 30, 1999, 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, boards, 
commissions, corporations, and offices for the fiscal year ending 
September 30, 1999, 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), $21,857,058,000, to remain 
available until expended: Provided, That not to exceed $24,534,000 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.


                          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, $1,175,000,000, 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, $46,450,000, 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 1999, 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 1999 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, $159,121,000, 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, $206,000, 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, $55,000, 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 $2,401,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $400,000, 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), $17,306,000,000, plus reimbursements: Provided, That 
of the funds made available under this heading, $778,000,000 is for the 
equipment and land and structures object classifications only, which 
amount shall not become available for obligation until August 1, 1999, 
and shall remain available until September 30, 2000: Provided further, 
That of the funds made available under this heading, not to exceed 
$27,420,000 may be transferred to and merged with the appropriation for 
``General operating expenses'': Provided further, That of the funds 
made available under this heading, up to $10,000,000 shall be for 
implementation of the Primary Care Providers Incentive Act, contingent 
upon enactment of authorizing legislation.
    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, 2000, $316,000,000, plus 
reimbursements: Provided, That of the funds made available under this 
heading, $6,000,000 is for the Musculoskeletal Disease Center, which 
amount shall remain available for obligation until expended.


       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, $63,000,000, 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, $855,661,000: Provided, That funds under this heading 
shall be available to administer the Service Members Occupational 
Conversion and Training Act.


                         national cemetery system

                      (including transfer of funds)

    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 six passenger motor vehicles for use in cemeterial 
operations; and hire of passenger motor vehicles, $92,006,000: 
Provided, That of the amount made available under this heading, not to 
exceed $90,000 may be transferred to and merged with the appropriation 
for ``General operating expenses''.


                       office of inspector general

                      (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$36,000,000: Provided, That of the amount made available under this 
heading, not to exceed $30,000 may be transferred to and merged with 
the appropriation for ``General operating expenses''.


                       Construction, Major Projects

                      (including transfer of funds)

    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, $142,300,000, to remain 
available until expended: Provided, 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 1999, for each approved 
project shall be obligated: (1) by the awarding of a construction 
documents contract by September 30, 1999; and (2) by the awarding of a 
construction contract by September 30, 2000: 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: Provided further, That not to exceed $125,000 may be 
transferred to the Pershing Hall Revolving Fund, codified at section 
493(d) of title 36, United States Code: Provided further, That during 
fiscal year 1999, or in subsequent fiscal years, the ``Construction, 
major projects'' account shall be reimbursed, in the amount 
transferred, from other funds as they become part of the Pershing Hall 
Revolving Fund.


                       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, $90,000,000, to remain available until expended.


         grants for the construction of state veterans 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 1999 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 1999 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 1999 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 1998.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year 1999 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 1999, 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 1999, 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 
1999, 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. In accordance with section 1557 of title 31, United 
States Code, the following obligated balances shall be exempt from 
subchapter IV of chapter 15 of such title and shall remain available 
for expenditure without fiscal year limitation: (1) funds obligated by 
the Department of Veterans Affairs for lease numbers 084B-05-94, 084B-
07-94, and 084B-027-94 from funds made available in the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1994 (Public Law 103-124) under the 
heading ``Medical care''; and (2) funds obligated by the Department of 
Veterans Affairs for lease number 084B-002-96 from funds made available 
in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1995 (Public 
Law 103-327) under the heading ``Medical care''.
    Sec. 109. (a) The Department of Veterans Affairs medical center in 
Salisbury, North Carolina, is hereby designated as the ``W.G. (Bill) 
Hefner Salisbury Department of Veterans Affairs Medical Center''. Any 
reference to such center in any law, regulation, map, document, record 
or other paper of the United States shall be considered to be a 
reference to the ``W.G. (Bill) Hefner Salisbury Department of Veterans 
Affairs Medical Center''.
    (b) The provisions of subsection (a) are effective on the latter of 
the first day of the 106th Congress or January 3, 1999.
    Sec. 110. Land Conveyance, Ridgecrest Children's Center, Alabama. 
(a) Conveyance.--The Secretary of Veterans Affairs may convey, without 
consideration, to the Board of Trustees of the University of Alabama, 
all right, title, and interest of the United States in and to the 
parcel of real property, including any improvements thereon, described 
in subsection (b).
    (b) Covered Parcel.--The parcel of real property to be conveyed 
under subsection (a) is the following: A parcel of property lying in 
the northeast quarter of the southwest quarter, section 28, township 21 
south, range 9 west, Tuscaloosa County, Alabama, lying along and 
adjacent to Ridgecrest (Brewer's Porch) Children's Center being more 
particularly described as follows: As a point of commencement start at 
the southeast corner of the north half of the southwest quarter run in 
an easterly direction along an easterly projection of the north 
boundary of the southeast quarter of the southwest quarter for a 
distance of 888.52 feet to a point; thence with a deflection angle to 
the left of 134 degrees 41 minutes run in a northwesterly direction for 
a distance of 1164.38 feet to an iron pipe; thence with a deflection 
angle to the left of 75 degrees 03 minutes run in a southwesterly 
direction for a distance of 37.13 feet to the point of beginning of 
this parcel of property; thence continue in this same southwesterly 
direction along the projection of the chainlink fence for a distance of 
169.68 feet to a point; thence with an interior angle to the left of 63 
degrees 16 minutes run in a northerly direction for a distance of 
233.70 feet to a point; thence with an interior angle to the left of 43 
degrees 55 minutes run in a southeasterly direction for a distance of 
218.48 feet to the point of beginning, said parcel having an interior 
angle of closure of 72 degrees 49 minutes, said parcel containing 0.40 
acres more or less, said parcel of property is also subject to all 
rights-of-way, easements, and conveyances heretofore given for this 
parcel of property.
    (c) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
    Sec. 111. (a) The Department of Veterans Affairs medical center in 
Cleveland, Ohio, is hereby designated as the ``Louis Stokes Cleveland 
Department of Veterans Affairs Medical Center''. Any reference to such 
center in any law, regulation, map, document, record or other paper of 
the United States shall be considered to be a reference to the ``Louis 
Stokes Cleveland Department of Veterans Affairs Medical Center''.
    (b) The provisions of subsection (a) are effective on the latter of 
the first day of the 106th Congress or January 3, 1999.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                         housing certificate fund

              (including transfers and rescission 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, $10,326,542,030, to remain available until expended: 
Provided, That of the total amount provided under this heading, 
$9,600,000,000 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 
(including renewals) 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 in the case of enhanced vouchers provided under 
this heading, if the income of a family receiving assistance declines 
to a significant extent, the percentage of income paid by the family 
for rent shall not exceed the greater of 30 percent or the percentage 
of income paid at the time of mortgage prepayment: Provided further, 
That the Secretary may determine not to apply section 8(o)(6)(B) of the 
Act to housing vouchers during fiscal year 1999: Provided further, That 
of the total amount provided under this heading, $433,542,030 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 relocation and 
replacement housing for units that are demolished or disposed of from 
the public housing inventory (in addition to amounts that may be 
available for such purposes under this and other headings); 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 of the total amount provided under this heading, 
$10,000,000 shall be for Regional Opportunity Counseling: Provided 
further, That all balances, as of September 30, 1998, remaining in the 
``Prevention of Resident Displacement'' account shall be transferred to 
and merged with the amounts provided for those purposes under this 
heading.
    For tenant-based assistance under the United States Housing Act of 
1937 to help eligible families make the transition from welfare to 
work, $283,000,000 from the total amount provided under this heading, 
to be administered by public housing agencies (including Indian tribes 
and their tribally designated housing entities, as defined by the 
Secretary of Housing and Urban Development), and to remain available 
until expended: Provided, That families initially selected to receive 
assistance under this paragraph: (1) shall be eligible to receive, 
shall be currently receiving, or shall have received within the 
preceding two years, assistance or services funded under the Temporary 
Assistance for Needy Families (TANF) program under part A of title IV 
of the Social Security Act or as part of a State's qualified State 
expenditure under section 409(a)(7)(B)(i) of such Act; (2) shall be 
determined by the agency to be families for which tenant-based housing 
assistance is critical to successfully obtaining or retaining 
employment; and (3) shall not already be receiving tenant-based 
assistance under the United States Housing Act of 1937: Provided 
further, That each application shall: (1) describe the proposed 
program, which shall be developed by the public housing agency in 
consultation with the State, local or Tribal entity administering the 
TANF program and the entity, if any, administering the Welfare-to-Work 
grants allocated by the United States Department of Labor pursuant to 
section 403(a)(5)(A) of the Social Security Act, and which shall take 
into account the particular circumstances of the community; (2) 
demonstrate that tenant-based housing assistance is critical to the 
success of assisting eligible families to obtain or retain employment; 
(3) specify the criteria for selecting among eligible families to 
receive housing assistance under this paragraph; (4) describe the 
proposed strategy for tenant counseling and housing search assistance 
and landlord outreach; (5) include any requests for waivers of any 
administrative requirements or any provisions of the United States 
Housing Act of 1937, with a demonstration of how approval of the 
waivers would substantially further the objective of this paragraph; 
(6) include certifications from the State, local, or Tribal entity 
administering assistance under the TANF program and from the entity, if 
any, administering the Welfare-to-Work grants allocated by the United 
States Department of Labor, that the entity supports the proposed 
program and will cooperate with the public housing agency that 
administers the housing assistance to assure that such assistance is 
coordinated with other welfare reform and welfare to work initiatives; 
however, if either does not respond to the public housing agency within 
a reasonable time period, its concurrence shall be assumed, and if 
either objects to the application, its concerns shall accompany the 
application to the Secretary, who shall take them into account in this 
funding decision; and (7) include such other information as the 
Secretary may require and meet such other requirements as the Secretary 
may establish: Provided further, That the Secretary, after consultation 
with the Secretary of Health and Human Services and the Secretary of 
Labor, shall select public housing agencies to receive assistance under 
this paragraph on a competitive basis, taking into account the need for 
and quality of the proposed program (including innovative approaches), 
the extent to which the assistance will be coordinated with welfare 
reform and welfare to work initiatives, the extent to which the 
application demonstrates that tenant-based assistance is critical to 
the success of assisting eligible families to obtain or retain 
employment; and other appropriate criteria established by the 
Secretary: Provided further, That the Secretary may use up to one 
percent of the amount available under this paragraph, directly or 
indirectly, to conduct detailed evaluations of the effect of providing 
assistance under this paragraph: Provided further, That of the amount 
made available under this paragraph, at least $4,000,000 each shall be 
made available for local self-sufficiency/welfare-to-work initiatives 
in San Bernardino County, California; Cleveland, Ohio; Kansas City, 
Missouri; Charlotte, North Carolina; Miami/Dade County, Florida; Prince 
Georges County, Maryland; New York City, New York; and Anchorage, 
Alaska.
    From the sources and in the order hereinafter specified, 
$1,650,000,000 is rescinded: Provided, That the first source shall be 
amounts that are available or may be recaptured from project-based 
contracts for section 8 assistance that expired or were terminated 
during fiscal year 1999 or any prior year: Provided further, That after 
all amounts that are available or may be recaptured from the first 
source have been exhausted, the second source shall be unobligated 
amounts from amendments to contracts for project-based section 8 
assistance, other than contracts for projects developed under section 
202 of the Housing Act of 1959, other than amounts described as the 
fourth source, in the fourth proviso in this paragraph, that are 
carried over into 1999: Provided further, That after all amounts that 
are available from the second source are exhausted, the third source 
shall be amounts recaptured from section 8 reserves in the section 8 
moderate rehabilitation program: Provided further, That after all 
amounts that are available or may be recaptured from the third source 
have been exhausted, the fourth source shall be all unobligated amounts 
for project-based assistance that are earmarked under the third proviso 
under this heading in Public Law 105-65, 111 Stat. 1351 (approved 
October 27, 1997): Provided further, That any amounts that are 
available or recaptured in connection with the first or third provisos 
of this paragraph that are in the Annual Contributions for Assisted 
Housing account, and are required to be rescinded by this paragraph, 
shall be rescinded from the Annual Contributions for Assisted Housing 
account.


                       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), 
$3,000,000,000, to remain available until expended: Provided, That of 
the total amount, up to $100,000,000 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 
programs 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, 1998, of funds 
heretofore provided for section 673 public housing service coordinators 
shall be transferred to and merged with amounts made available under 
this heading.


                      public housing operating fund

    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), 
$2,818,000,000, to remain available until expended.


              drug elimination grants for low-income housing

                      (including transfer of funds)

    For grants to public housing agencies and Indian tribes and their 
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 (including appropriate 
homeownership down payment assistance for displaced tenants), 
$625,000,000, to remain available until expended, of which the 
Secretary may use up to $15,000,000 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 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, 1997, and 
1998, and the Omnibus Consolidated Rescissions and Appropriations Act 
of 1996: Provided further, That for purposes of environmental review 
pursuant to the National Environmental Policy Act of 1969, a grant 
under this heading or under prior appropriations Acts for use for the 
purposes under this heading shall be treated as assistance under title 
I of the United States Housing Act of 1937 and shall be subject to the 
regulations issued by the Secretary to implement section 26 of such 
Act: 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), $620,000,000, to remain 
available until expended, of which $6,000,000 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, $6,000,000 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 $54,600,000.
    In addition, for administrative expenses to carry out the 
guaranteed loan program, up to $200,000, which shall be transferred to 
and merged with the appropriation for departmental salaries and 
expenses, to be used only for the administrative costs of these 
guarantees: Provided, That the funds made available in the first 
proviso in the preceding paragraph 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.


            indian housing loan guarantee fund program account

                      (including transfer of funds)

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (106 Stat. 3739), 
$6,000,000, 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 
$68,881,000.
    In addition, for administrative expenses to carry out the 
guaranteed loan program, up to $400,000, which shall be transferred to 
and merged with the appropriation for departmental salaries and 
expenses, to be used only for the administrative costs of these 
guarantees.


                  rural housing and economic development

                      (including transfer of funds)

    For an Office of Rural Housing and Economic Development to be 
established in the Department of Housing and Urban Development, 
$25,000,000, to remain available until expended: Provided, That of the 
amount under this heading, $4,000,000 shall be used to develop capacity 
at the State and local level for developing rural housing and for 
economic development, of which $1,000,000 shall be used to develop a 
clearinghouse of ideas for innovative strategies for rural housing and 
economic development and revitalization and of which $3,000,000 shall 
be awarded by June 1, 1999 directly to local rural nonprofits, 
community development corporations and Indian tribes to support 
capacity building and technical assistance: Provided further, That of 
the amount under this heading, $21,000,000 shall be awarded by June 1, 
1999 to Indian tribes, State housing finance agencies, State community 
and/or economic development agencies, local rural nonprofits and 
community development corporations to support innovative housing and 
economic development activities in rural areas, of which $5,000,000 
shall be awarded as seed support for Indian tribes, nonprofits and 
community development corporations that are located in areas that have 
limited capacity for the development of rural housing and for economic 
development: Provided further, That all grants shall be awarded on a 
competitive basis as specified in section 102 of the HUD Reform Act: 
Provided further, That all funds unobligated as of October 1, 1998 
under the fifth paragraph of the Community Development Block Grants 
account in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriation Act, 1998 (Public 
Law 105-65; October 27, 1997) shall be transferred to this account to 
be awarded to Indian tribes, State housing finance agencies, State 
community and/or economic development agencies, local rural nonprofits 
and community development corporations for activities under this 
heading with any outstanding earmarks for a State to be awarded to that 
State's housing finance agency.

                   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), $215,000,000, to remain available until expended: Provided, 
That the Secretary may use up to 1 percent of the funds under this 
heading for technical assistance: Provided further, That within 30 days 
of the close of fiscal year 1999, the Secretary shall submit a report 
to the Congress summarizing all technical assistance provided during 
the fiscal year.


                    community development block grants

                      (including transfer 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), $4,750,000,000, to remain available until September 30, 
2001: Provided, That $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of such Act, $3,000,000 shall be 
available as a grant to the Housing Assistance Council, $3,000,000 
shall be available for the Organizing Committee for the 1999 Special 
Olympics Summer Games to be used in support of related activities in 
the Triangle Area of North Carolina, $1,800,000 shall be available as a 
grant to the National American Indian Housing Council, $50,000,000 
shall be for grants pursuant to section 107 of the Act: Provided 
further, That all funding decisions under section 107 except as 
specified herein shall be subject to a reprogramming request unless 
otherwise specified in accordance with the terms and conditions 
specified in the joint explanatory statement of the committee of 
conference accompanying this Act (H.R. 4194): Provided further, That 
$27,500,000 shall be for grants pursuant to the Self Help Housing 
Opportunity program, subject to authorization, of which $7,500,000 
shall be for capacity building efforts: Provided further, That not to 
exceed 20 percent of any grant made with funds appropriated herein 
(other than a grant made available in this paragraph 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,'' for LISC and the Enterprise Foundation for 
activities 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 made available under this heading, $12,000,000 is for 
the City of Oklahoma City, Oklahoma, for a revolving loan pool that 
shall be subject to the following requirements and conditions: (1) 
amounts in the pool shall be available only for the purposes of making 
loans to carry out economic development activities that primarily 
benefit the area in Oklahoma City bounded on the south by Robert S. 
Kerr Avenue, on the north by North 13th Street, on the east by Oklahoma 
Avenue, and on the west by Shartel Avenue, and covering costs involved 
in administering the loan pool; (2) amounts provided under this 
paragraph shall be available for use from the loan pool only to the 
extent that the amounts contributed to the loan pool (or committed to 
be contributed) from non-Federal sources equal or exceed two times the 
amounts provided under this paragraph; (3) any repayments of principal 
and interest from loans made by the pool shall be deposited in the pool 
and available for use for loans in accordance with this paragraph; (4) 
amounts in the pool may not be used to provide loans to any agency or 
entity of the Federal Government or any State government or unit of 
general local government; (5) amounts provided under this paragraph 
shall be available for use from the loan pool only if the City of 
Oklahoma City, Oklahoma agrees (to the satisfaction of the Secretary of 
Housing and Urban Development) to deposit in the pool (for use for 
loans in accordance with this paragraph) the net proceeds from any 
amounts that are repaid to the City under loans made by the City using 
amounts provided under this same heading under chapter III of title III 
of Public Law 104-19 (109 Stat. 253).
    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 
$20,000,000 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 case management skills training, job search 
assistance, assistance related to retaining employment, vocational and 
entrepreneurship development and support programs, such as 
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, $42,500,000 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: Provided, That local YouthBuild 
programs that demonstrate an ability to leverage private and nonprofit 
funding shall be given a priority for YouthBuild funding: Provided 
further, That up to $2,500,000 may be used for capacity buildings 
efforts.
    Of the amount made available under this heading, $225,000,000 shall 
be available for the Economic Development Initiative (EDI) to finance a 
variety of efforts, including $190,000,000 for making grants for 
targeted economic investments in accordance with the terms and 
conditions specified for such grants in the joint explanatory statement 
of the committee of conference accompanying this Act.
    Of the amount made available under this heading, $25,000,000 shall 
be available 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: Provided further, That 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.
    For any fiscal year, of the amounts made available as emergency 
funds under the heading ``Community Development Block Grants Fund'' and 
notwithstanding any other provision of law, not more than $250,000 may 
be used for the non-Federal cost-share of any project 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.


                   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, $1,600,000,000, to remain available 
until expended: Provided, That up to $7,000,000 of these funds shall be 
available for the development and operation of integrated community 
development management information systems: Provided further, That up 
to $17,500,000 of these funds shall be available for Housing Counseling 
under section 106 of the Housing and Urban Development Act of 1968.


                        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), $975,000,000, to remain available 
until expended: Provided, That not less than 30 percent of these funds 
shall be used for permanent housing, and all funding for services must 
be matched by 25 percent in funding by each grantee: Provided further, 
That the Secretary of Housing and Urban Development shall conduct a 
review of any balances of amounts provided under this heading in this 
or any previous appropriations Act that have been obligated but remain 
unexpended and shall deobligate any such amounts that the Secretary 
determines were obligated for contracts that are unlikely to be 
performed and award such amounts during this fiscal year: Provided 
further, That up to 1 percent of the funds appropriated under this 
heading may be used for technical assistance and tracking systems 
needed to carry out the directives provided in House Report 105-610.

                            Housing Programs


                     housing for special populations

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low 
income families not otherwise provided for, $854,000,000, to remain 
available until expended: Provided, That of the total amount provided 
under this heading, $660,000,000 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.


                          flexible subsidy fund

                           (transfer of funds)

    From the Rental Housing Assistance Fund, all uncommitted balances 
of excess rental charges as of September 30, 1998, and any collections 
made during fiscal year 1999, 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 1999, 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 1999, obligations to make direct loans to carry 
out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $100,000,000: 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, $328,888,000, to be derived from the FHA-
mutual mortgage insurance guaranteed loans receipt account, of which 
not to exceed $324,866,000 shall be transferred to the appropriation 
for departmental salaries and expenses; and of which not to exceed 
$4,022,000 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 $18,100,000,000: 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, and 519(a) of the National 
Housing Act, shall not exceed $50,000,000; of which not to exceed 
$30,000,000 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, $211,455,000, of which 
$193,134,000, shall be transferred to the appropriation for 
departmental salaries and expenses; and of which $18,321,000 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 1999, 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 $150,000,000,000.
    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, $47,500,000, to remain 
available until September 30, 2000.

                   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, 
$40,000,000, to remain available until September 30, 2000, of which 
$23,500,000 shall be to carry out activities pursuant to such section 
561: Provided, That 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.

                     Office of Lead Hazard Control


                          lead hazard reduction

    For the Lead Hazard Reduction Program, as authorized by sections 
1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 
1992, $80,000,000 to remain available until expended, of which 
$2,500,000 shall be for CLEARCorps and $10,000,000 shall be for a 
Healthy Homes Initiative, which shall be a program pursuant to sections 
501 and 502 of the Housing and Urban Development Act of 1970 that shall 
include research, studies, testing, and demonstration efforts, 
including education and outreach concerning lead-based paint poisoning 
and other housing-related environmental diseases and hazards.

                     Management and Administration


                          salaries and expenses

                      (including transfer of funds)

    For necessary administrative and non-administrative 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, $985,826,000, of which $518,000,000 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, $1,000,000 shall be provided from the ``Community 
Development Grants Program'' account, $200,000 shall be provided by 
transfer from the ``Title VI Indian Federal Guarantees Program'' 
account, and $400,000 shall be provided by transfer from the ``Indian 
Housing Loan Guarantee Fund Program'' account: Provided, That the 
Department is prohibited from employing more than 77 schedule C and 20 
noncareer Senior Executive Service employees.


                       office of inspector general

                      (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$81,910,000, of which $22,343,000 shall be provided from the various 
funds of the Federal Housing Administration and $10,000,000 shall be 
provided from the amount earmarked for Operation Safe Home in the 
``Drug Elimination Grants for Low-Income Housing'' account: Provided, 
That the Inspector General shall have independent authority over all 
personnel issues within the Office of Inspector General.

             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

     public and assisted housing rents, preferences, and flexibility

    Sec. 201. Section 201(a)(2) of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (42 U.S.C. 1437l note), is amended to read as 
follows:
        ``(2) Applicability.--Section 14(q) of the United States 
    Housing Act of 1937 shall be effective only with respect to 
    assistance provided from funds made available for fiscal year 1999 
    or any preceding fiscal year, except that the authority in the 
    first sentence of section 14(q)(1) to use up to 10 percent of the 
    allocation of certain funds for any operating subsidy purpose shall 
    not apply to amounts made available for fiscal years 1998 and 
    1999.''.


                       gse default loss protection

    Sec. 202. (a) Section 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act is amended in the first sentence by--
        (1) striking ``or'' at the end of clause (B);
        (2) striking the period at the end of the first sentence and 
    inserting: ``; or (D) the mortgage is subject to default loss 
    protection that the Corporation determines is financially equal or 
    superior, on an individual or pooled basis, to the protection 
    provided by clause (C) of this sentence: Provided, That if the 
    Director of the Office of Federal Housing Enterprise Oversight 
    subsequently finds that such default loss protection determined by 
    the Corporation does not provide such equal or superior protection, 
    the Corporation shall provide such additional default loss 
    protection for such mortgage, as approved by the Director of the 
    Office of Federal Housing Enterprise Oversight, necessary to 
    provide such equal or superior protection.''.
    (b) Section 1313(b) of the Federal Housing Enterprises Financial 
Housing Safety and Soundness Act of 1992 is amended by redesignating 
paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12), 
respectively, and inserting the following new paragraph (9):
        ``(9) default loss protection levels under section 305(a)(2)(D) 
    of the Federal Home Loan Mortgage Corporation Act;''.


                       Financing Adjustment Factors

    Sec. 203. 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.


                       Fair Housing and Free Speech

    Sec. 204. None of the amounts made available under this Act may be 
used during fiscal year 1999 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.


                  Brownfields as Eligible CDBG Activity

    Sec. 205. For fiscal years 1998, 1999, and all fiscal years 
thereafter, 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.


                      Enhanced Disposition Authority

    Sec. 206. Section 204 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997, is amended by striking ``fiscal years 1997 and 1998'' and 
inserting ``fiscal years 1997, 1998, and 1999''.


            Housing Opportunities for Persons With AIDS Grants

    Sec. 207. (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 1999 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 in a prior fiscal year under clause 
    (ii) of such section; and
        (2) is not otherwise eligible for an allocation for fiscal year 
    1999 under such clause (ii) because the areas in the State outside 
    of the metropolitan statistical areas that qualify under clause (i) 
    in fiscal year 1999 do not have the number of cases of acquired 
    immunodeficiency syndrome required under such clause.
    (b) Amount.--The amount of the allocation and grant for any State 
described in subsection (a) shall be an amount based on the cumulative 
number of AIDS cases in the areas of that State that are outside of 
metropolitan statistical areas that qualify under clause (i) of such 
section 854(c)(1)(A) in fiscal year 1999 in proportion to AIDS cases 
among cities and States that qualify under clauses (i) and (ii) of such 
section and States deemed eligible under subsection (a).
    (c) Environmental Review.--For purposes of environmental review, 
pursuant to the National Environmental Policy Act of 1969 and other 
provisions of law that further the purposes of such Act, a grant under 
the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) from amounts 
provided under this or prior Acts shall be treated as assistance for a 
special project that is subject to section 305(c) of the Multifamily 
Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547), and 
shall be subject to the regulations issued by the Secretary to 
implement such section. Where the grantee under the AIDS Housing 
Opportunity Act is a nonprofit organization and the activity is 
proposed to be carried out within the jurisdiction of an Indian tribe 
or the community of an Alaska native village, the role of the State or 
unit of general local government under sections 305(c)(1)-(3) of such 
Act may be carried out by the Indian tribe or Alaska native village 
instead.


                            Drawdown of Funds

    Sec. 208. Section 14(q)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437l(q)(1)) is amended by inserting after the first 
sentence the following sentence: ``Such assistance may involve the 
drawdown of funds on a schedule commensurate with construction draws 
for deposit into an interest earning escrow account to serve as 
collateral or credit enhancement for bonds issued by a public agency 
for the construction or rehabilitation of the development.''.


  Elimination of Shopping Incentive for Voucher Families Who Remain in 
              Same Unit Upon Initial Receipt of Assistance

    Sec. 209. (a) Section 8(o)(2) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(2)) is amended by inserting the following new 
sentence at the end: ``Notwithstanding the preceding sentence, for 
families being admitted to the voucher program who remain in the same 
unit or complex, where the rent (including the amount allowed for 
utilities) does not exceed the payment standard, the monthly assistance 
payment for any family shall be the amount by which such rent exceeds 
the greater of 30 percent of the family's monthly adjusted income or 10 
percent of the family's monthly income.''.
    (b) This section shall take effect 60 days after the later of 
October 1, 1998 or the date of the enactment of this Act.


               renegotiation of performance funding system

    Sec. 210. Section 9(a)(3)(A) of the United States Housing Act of 
1937 (42 U.S.C. 1437g(a)(3)(A)) is amended--
        (1) by inserting after the third sentence the following new 
    sentence to read as follows:
``Notwithstanding the preceding sentences, the Secretary may revise the 
performance funding system in a manner that takes into account equity 
among public housing agencies and that includes appropriate incentives 
for sound management.''; and
        (2) in the last sentence, by inserting after ``vacant public 
    housing units'' the following: ``, or any substantial change under 
    the preceding sentence,''.


              FHA Multifamily Mortgage Credit Demonstrations

    Sec. 211. Section 542 of the Housing and Community Development Act 
of 1992 is amended--
        (1) in subsection (b)(5) by adding before the period at the end 
    of the first sentence ``, and not more than an additional 25,000 
    units during fiscal year 1999'', and
        (2) in the first sentence of subsection (c)(4) by striking 
    ``1996 and'' and inserting ``1996,'' and by inserting after 
    ``fiscal year 1997'' the following: ``and not more than an 
    additional 25,000 units during fiscal year 1999''.


                        Calculation of Downpayment

    Sec. 212. Section 203(b)(10) of the National Housing Act is amended 
by--
        (1) striking out ``Alaska and Hawaii'' and inserting in lieu 
    thereof ``Calculation of Downpayment''; and
        (2) striking out in subparagraph (A) ``originated in the State 
    of Alaska or the State of Hawaii and endorsed for insurance in 
    fiscal years 1997 and 1998,'' and inserting in lieu thereof 
    ``executed for insurance in fiscal years 1998, 1999, and 2000''.


                         State CDBG IDIS Funding

    Sec. 213. During fiscal year 1999, from amounts received by a State 
under section 106(d)(1) of the Housing and Community Development Act of 
1974 for distribution in nonentitlement areas, the State may deduct an 
amount, not to exceed the greater of 0.25 percent of the amount so 
received or $50,000, for implementation of the integrated disbursement 
and information system established by the Secretary, in addition to any 
amounts used for this purpose from amounts retained by the State for 
administrative expenses under section 106(d)(3)(A).


                         Nursing Home Lease Terms

    Sec. 214. (a) Technical Correction.--Section 216 of the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998, is amended by striking out ``fifty 
years from the date'' and inserting in lieu thereof ``fifty years to 
run from the date''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
construed to have taken effect on October 27, 1997.


                   Technical for Emergency CDBG Program

    Sec. 215. For purposes of eligibility for funding under the heading 
``Community Development Block Grants'' in the 1998 Supplemental 
Appropriations and Rescissions Act (Public Law 105-174; May 1, 1998) 
the term ``States'' shall be deemed to include ``Indian tribes'' as 
defined under section 102(a)(17) of the Housing and Community 
Development Act of 1974 and Guam, the Northern Mariana Islands, the 
Virgin Islands, and American Samoa: Provided, That amounts made 
available by this section are designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.


            Use of Home Funds for Public Housing Modernization

    Sec. 216. Notwithstanding section 212(d)(5) of the Cranston-
Gonzalez National Affordable Housing Act, amounts made available to the 
City of Bismarck, North Dakota, under subtitle A of title II of the 
Cranston-Gonzalez National Affordable Housing Act for fiscal years 
1998, 1999, 2000, 2001 or 2002, may be used to carry out activities 
authorized under section 14 of the United States Housing Act of 1937 
(42 U.S.C. 14371) for the purpose of modernizing the Crescent Manor 
public housing project located at 107 East Bowen Avenue, in Bismarck, 
North Dakota, if--
        (1) the Burleigh County Housing Authority (or any successor 
    public housing agency that owns or operates the Crescent Manor 
    public housing project) has obligated all other Federal assistance 
    made available to that public housing agency for that fiscal year; 
    or
        (2) the Secretary of Housing and Urban Development authorizes 
    the use of those amounts for the purpose of modernizing that public 
    housing project, which authorization may be made with respect to 
    one or more of those fiscal years.


                         cdbg and home exemption

    Sec. 217. The City of Oxnard, California may use amounts available 
to the City under title I of the Housing and Community Development Act 
of 1974 and under subtitle A of title II of the Cranston-Gonzalez 
National Affordable Housing Act to reimburse the city for its cost in 
purchasing 19.89 acres of land, more or less, located at the northwest 
corner of Lombard Street and Camino del Sol in the city, on the north 
side of the 2100 block of Camino del Sol, for the purpose of providing 
affordable housing. The procedures set forth in sections 104(g)(2) and 
(3) of the Housing and Community Development Act of 1974 and sections 
288(b) and (c) of the Cranston-Gonzalez National Affordable Housing Act 
shall not apply to any release of funds for such reimbursement.


                         CDBG PUBLIC SERVICES CAP

    Sec. 218. Section 105(a)(8) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking 
``1998'' and inserting ``1999''.


                 Clarification of Owner's Right to Prepay

    Sec. 219. (a) Prepayment Right.--Notwithstanding section 211 of the 
Housing and Community Development Act of 1987 or section 221 of the 
Housing and Community Development Act of 1987 (as in effect pursuant to 
section 604(c) of the Cranston-Gonzalez National Affordable Housing 
Act), subject to subsection (b), with respect to any project that is 
eligible low-income housing (as that term is defined in section 229 of 
the Housing and Community Development Act of 1987)--
        (1) the owner of the project may prepay, and the mortgagee may 
    accept prepayment of, the mortgage on the project, and
        (2) the owner may request voluntary termination of a mortgage 
    insurance contract with respect to such project and the contract 
    may be terminated notwithstanding any requirements under sections 
    229 and 250 of the National Housing Act.
    (b) Conditions.--Any prepayment of a mortgage or termination of an 
insurance contract authorized under subsection (a) may be made--
        (1) only to the extent that such prepayment or termination is 
    consistent with the terms and conditions of the mortgage on or 
    mortgage insurance contract for the project;
        (2) only if the owner of the project involved agrees not to 
    increase the rent charges for any dwelling unit in the project 
    during the 60-day period beginning upon such prepayment or 
    termination; and
        (3) only if the owner of the project provides notice of intent 
    to prepay or terminate, in such form as the Secretary of Housing 
    and Urban Development may prescribe, to each tenant of the housing, 
    the Secretary, and the chief executive officer of the appropriate 
    State or local government for the jurisdiction within which the 
    housing is located, not less than 150 days, but not more than 270 
    days, before such prepayment or termination, except that such 
    requirement shall not apply to a prepayment or termination that--
            (A) occurs during the 150-day period immediately following 
        the date of the enactment of this Act;
            (B) is necessary to effect conversion to ownership by a 
        priority purchaser (as defined in section 231(a) of the Low-
        Income Housing Preservation and Resident Ownership Act of 1990 
        (12 U.S.C. 4120(a)), or
            (C) will otherwise ensure that the project will continue to 
        operate, at least until the maturity date of the loan or 
        mortgage, in a manner that will provide rental housing on terms 
        at least as advantageous to existing and future tenants as the 
        terms required by the program under which the loan or mortgage 
        was made or insured prior to the proposed prepayment or 
        termination.


             Public and Assisted Housing Drug Elimination Act

    Sec. 220. The Public and Assisted Housing Drug Elimination Act of 
1990 is amended--
        (1) in section 5123, by inserting ``Indian tribes'' before 
    ``and private'';
        (2) in section 5124(a)(7), by inserting ``, an Indian tribe,'' 
    before ``or tribally designated'';
        (3) in section 5125, by inserting ``an Indian tribe'' before 
    ``a tribally designated''; and
        (4) in section 5126, by adding at the end the following new 
    paragraph:
        ``(6) Indian tribe.--The term ``Indian tribe'' has the meaning 
    given the term in section 4(12) of the Native American Housing 
    Assistance and Self Determination Act of 1996, 25 U.S.C. 
    4103(12).''.


                      Multifamily Housing Institute

    Sec. 221. Notwithstanding any other provision of law, the Secretary 
may, from time to time, as determined necessary to assist the 
Department in managing its multifamily assets including analyzing, 
tracking and evaluating its portfolio of FHA-insured and other 
mortgages and properties and assisting the Department in understanding 
and reducing the risk involved in its mortgage restructuring, insuring 
and guaranteeing activities, provide data to, and purchase data from, 
any nonprofit, industry supported, on-line provider of nationwide, 
multifamily housing loan and property data services.


                      Multifamily Mortgage Auctions

    Sec. 222. Section 221(g)(4)(C) of the National Housing Act is 
amended--
        (1) in the first sentence of clause (viii), by striking 
    ``September 30, 1996'' and inserting ``December 31, 2002''; and
        (2) by adding at the end the following:
                ``(ix) The authority of the Secretary to conduct 
            multifamily auctions under this paragraph shall be 
            effective for any fiscal year only to the extent and in 
            such amounts as are approved in appropriations Acts for the 
            costs of loan guarantees (as defined in section 502 of the 
            Congressional Budget Act of 1974), including the cost of 
            modifying loans.''.


                            Funding Correction

    Sec. 223. Notwithstanding any other provision of law, of the 
$1,250,000 made available pursuant to Public Law 102-389 for economic 
revitalization and infrastructure repair in Montpelier, Vermont, 
$250,000 is available for the Central Vermont Revolving Loan Fund 
administered by the Central Vermont Community Action Council.


                 Annual Report on Management Deficiencies

    Sec. 224.(a) In General.--Section 203 of the National Housing Act 
(12 U.S.C. 1709) is amended by adding at the end the following:
    ``(x) Management Deficiencies Report.--
        ``(1) In general.--Not later than 60 days after the date of the 
    enactment of this subsection, and annually thereafter, the 
    Secretary shall submit to Congress a report on the plan of the 
    Secretary to address each material weakness, reportable condition, 
    and noncompliance with an applicable law or regulation (as defined 
    by the Director of the Office of Management and Budget) identified 
    in the most recent audited financial statement of the Federal 
    Housing Administration submitted under section 3515 of title 31, 
    United States Code.
        ``(2) Contents of annual report.--Each report submitted under 
    paragraph (1) shall include--
            ``(A) an estimate of the resources, including staff, 
        information systems, and contract assistance, required to 
        address each material weakness, reportable condition, and 
        noncompliance with an applicable law or regulation described in 
        paragraph (1), and the costs associated with those resources;
            ``(B) an estimated timetable for addressing each material 
        weakness, reportable condition, and noncompliance with an 
        applicable law or regulation described in paragraph (1); and
            ``(C) the progress of the Secretary in implementing the 
        plan of the Secretary included in the report submitted under 
        paragraph (1) for the preceding year, except that this 
        subparagraph does not apply to the initial report submitted 
        under paragraph (1).''.
    Sec. 225. (a) Informed Consumer Choice.--Section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)) is amended by adding at the 
end the following:
        ``In conjunction with any loan insured under this section, an 
    original lender shall provide to each prospective borrower a 
    disclosure notice that provides a one page analysis of mortgage 
    products offered by that lender and for which the borrower would 
    qualify. This notice shall include: (i) a generic analysis 
    comparing the note rate (and associated interest payments), 
    insurance premiums, and other costs and fees that would be due over 
    the life of the loan for a loan insured by the Secretary under this 
    subsection with the note rates, insurance premiums (if applicable), 
    and other costs and fees that would be expected to be due if the 
    mortgagor obtained instead other mortgage products offered by the 
    lender and for which the borrower would qualify with a similar 
    loan-to-value ratio in connection with a conventional mortgage (as 
    that term is used in section 305(a)(2) of the Federal Home Loan 
    Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) or section 
    302(b)(2) of the Federal National Mortgage Association Charter Act 
    (12 U.S.C. 1717(b)(2)), as applicable), assuming prevailing 
    interest rates; and (ii) a statement regarding when the mortgagor's 
    requirement to pay the mortgage insurance premiums for a mortgage 
    insured under this section would terminate or a statement that the 
    requirement will terminate only if the mortgage is refinanced, paid 
    off, or otherwise terminated.''.
    (b) Regulation.--The Secretary of Housing and Urban Development 
shall develop the disclosure notice under subsection (a) within 150 
days of the enactment through notice and comment rulemaking.
    Sec. 226. Funding of Certain Public Housing.--Notwithstanding any 
other provision of law, no funds in this Act or any other Act may 
hereafter be used by the Secretary of Housing and Urban Development to 
determine allocations or provide assistance for operating subsidies or 
modernization for certain State and city funded and locally developed 
public housing units, as defined for purposes of a statutory paragraph, 
notwithstanding the deeming by statute of such units to be public 
housing units developed under the United States Housing Act of 1937, 
unless such unit was so assisted before October 1, 1998.


                        Section 236 Program Reform

    Sec. 227. Section 236(g) of the National Housing Act, as amended by 
section 221(c) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997, 
is amended to read as follows:
    ``(g) The project owner shall, as required by the Secretary, 
accumulate, safeguard, and periodically pay the Secretary or such other 
entity as determined by the Secretary and upon such terms and 
conditions as the Secretary deems appropriate, all rental charges 
collected on a unit-by-unit basis in excess of the basic rental 
charges. Unless otherwise directed by the Secretary, such excess 
charges shall be credited to a reserve used by the Secretary to make 
additional assistance payments as provided in paragraph (3) of 
subsection (f). Notwithstanding any other requirements of this 
subsection, an owner of a project with a mortgage insured under this 
section, or a project previously assisted under subsection (b) but 
without a mortgage insured under this section if the project mortgage 
was insured under section 207 of this Act before July 30, 1998 pursuant 
to section 223(f) of this Act and assisted under subsection (b), may 
retain some or all of such excess charges for project use if authorized 
by the Secretary and upon such terms and conditions as established by 
the Secretary.''.


                     fha mortgage insurance increase

    Sec. 228. (a) Subparagraph (A) of section 203(b)(2) of the National 
Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking clause 
(ii) and all that follows through the end of the subparagraph and 
inserting the following:
                ``(ii) 87 percent of the dollar amount limitation 
            determined under section 305(a)(2) of the Federal Home Loan 
            Mortgage Corporation Act for a residence of the applicable 
            size; except that the dollar amount limitation in effect 
            for any area under this subparagraph may not be less than 
            48 percent of the dollar limitation determined under 
            section 305(a)(2) of the Federal Home Loan Mortgage 
            Corporation Act for a residence of the applicable size; 
            and''.
    (b) The first sentence in the matter following section 
203(b)(2)(B)(iii) of the National Housing Act (12 U.S.C. 
1709(b)(2)(B)(iii) is amended to read as follows: ``For purposes of the 
preceding sentence, the term `area' means a metropolitan statistical 
area as established by the Office of Management and Budget; and the 
median 1-family house price for an area shall be equal to the median 1-
family house price of the county within the area that has the highest 
such median price.''.


                    HOPE VI Grant for Hollander Ridge

    Sec. 229. If the Secretary rescinds the grant award of $20,000,000 
made to the Housing Authority of Baltimore City for development efforts 
at Hollander Ridge in Baltimore, Maryland, involving funds appropriated 
for fiscal year 1996 under the heading ``Public Housing Demolition, 
Site Revitalization, and Replacement Housing Grants'', all of the 
rescinded grant amount shall be recaptured by the Secretary and added 
to the amounts otherwise available under this heading. If, after the 
date of any such recapture, the Housing Authority of Baltimore City 
applies in response to a Notice of Funding Availability issued by the 
Secretary for a grant from funds available under this heading (not to 
exceed the amount recaptured) for development efforts at Hollander 
Ridge, then the Secretary shall grant priority status to such 
application and approve the grant award if the application meets the 
terms and criteria stated in the Notice of Funding Availability.


                             Debt Forgiveness

    Sec. 230. The Secretary of Housing and Urban Development shall 
cancel the indebtedness of the Town of Hobson City, Alabama, relating 
to a public facilities loan under title II of the Housing Amendments of 
1955, issued July 1, 1969 (Project No. ALA-01-PFL0139). The Town of 
Hobson City hereby is relieved of all liability to the Federal 
Government for the outstanding principal balance on such loan, for the 
amount of accrued interest on such loan, and for any other fees and 
charges payable in connection with such loan.


               Consideration of Homeless Grant Application

    Sec. 231. The Secretary shall consider without prejudice the 
application submitted August 5, 1998 by the City of Wichita and 
Sedgwick County, Kansas for assistance under the Continuum of Care 
Homeless Assistance program pursuant to the Notice at 63 Federal 
Register 23988, 23999 (April 30, 1998) notwithstanding the August 4, 
1998 due date for such application, notwithstanding any provision that 
may be to the contrary in section 102 of the Department of Housing and 
Urban Development Reform Act of 1989.


                        CDBG Service Cap for Miami

    Sec. 232. Section 105(a)(8) of the Housing and Community 
Development Act of 1974 is amended by striking ``fiscal year 1994'' and 
all that follows through the end of the paragraph and inserting the 
following: ``each of fiscal years 1999, 2000, and 2001, to the City of 
Miami, such city may use not more than 25 percent in each fiscal year 
for activities under this paragraph;''.

                    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, 
$26,431,000, to remain available until expended.

             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, 
$6,500,000: Provided, That the Chemical Safety and Hazard Investigation 
Board shall have not more than three career Senior Executive Service 
positions.

                       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, 2000, 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, $47,000,000.

             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, 2000: 
Provided, That not more than $28,500,000 shall be available for 
administrative expenses authorized under section 501(a)(4) of the Act 
(42 U.S.C. 12671(a)(4)) with not less than $3,000,000 targeted to 
administrative needs identified as urgent by the Corporation without 
regard to the provisions of section 501(a)(4)(B) of the Act: 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 $28,500,000 
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, $10,195,000, 
of which $865,000, 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 one 
passenger motor vehicle for replacement only, and not to exceed $1,000 
for official reception and representation expenses, $11,666,000, 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 maximum rate payable for senior 
level positions under 5 U.S.C. 5376; 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, 
$650,000,000, which shall remain available until September 30, 2000: 
Provided, That the obligated balance of such sums shall remain 
available through September 30, 2007 for liquidating obligations made 
in fiscal years 1999 and 2000.


                  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 maximum rate payable for senior level positions under 
5 U.S.C. 5376; 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, $1,848,000,000, 
which shall remain available until September 30, 2000: Provided, That 
the obligated balance of such sums shall remain available through 
September 30, 2007 for liquidating obligations made in fiscal years 
1999 and 2000: Provided further, That none of the funds appropriated by 
this Act shall be used to propose or issue rules, regulations, decrees, 
or orders for the purpose of implementation, or in preparation for 
implementation, of the Kyoto Protocol which was adopted on December 11, 
1997, in Kyoto, Japan at the Third Conference of the Parties to the 
United Nations Framework Convention on Climate Change, which has not 
been submitted to the Senate for advice and consent to ratification 
pursuant to article II, section 2, clause 2, of the United States 
Constitution, and which has not entered into force pursuant to article 
25 of the Protocol: Provided further, That none of the funds made 
available in this Act may be used to implement or administer the 
interim guidance issued on February 5, 1998 by the Environmental 
Protection Agency relating to title VI of the Civil Rights Act of 1964 
and designated as the ``Interim Guidance for Investigating Title VI 
Administrative Complaints Challenging Permits'' with respect to 
complaints filed under such title after the date of the enactment of 
this Act and until guidance is finalized. Nothing in this proviso may 
be construed to restrict the Environmental Protection Agency from 
developing or issuing final guidance relating to title VI of the Civil 
Rights Act of 1964.


                       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, 
$31,154,000, to remain available until September 30, 2000: Provided, 
That the obligated balance of such sums shall remain available through 
September 30, 2007 for liquidating obligations made in fiscal years 
1999 and 2000.


                         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, $56,948,000, to remain available until 
expended.


                      Hazardous Substance Superfund

                      (including transfers 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 $1,500,000,000, consisting of $650,000,000 as appropriated under 
this heading in Public Law 105-65, notwithstanding the second proviso 
under this heading of said Act, and not to exceed $850,000,000 (of 
which $100,000,000 shall not become available until September 1, 1999), 
all of which is to remain available until expended, consisting of 
$1,175,000,000, as authorized by section 517(a) of the Superfund 
Amendments and Reauthorization Act of 1986 (SARA), as amended by Public 
Law 101-508, and $325,000,000 as a payment from general revenues to the 
Hazardous Substance Superfund for purposes 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 $12,237,000 of the funds appropriated under this heading shall be 
transferred to the ``Office of Inspector General'' appropriation to 
remain available until September 30, 2000: Provided further, That 
notwithstanding section 111(m) of CERCLA or any other provision of law, 
$76,000,000 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 
$40,000,000 of the funds appropriated under this heading shall be 
transferred to the ``Science and Technology'' appropriation to remain 
available until September 30, 2000: 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 1999: Provided further, That an additional amount, 
$650,000,000, shall become available for obligation on October 1, 1999, 
only upon enactment by August 1, 1999, of specific legislation which 
reauthorizes the Superfund program: Provided further, That if such 
reauthorization does not occur on or before August 1, 1999, such 
additional amount to be made available on October 1, 1999, is rescinded 
and the Congressional Budget Office is directed to make the appropriate 
scorekeeping adjustment no later than August 5, 1999.
    Section 119(e)(2)(C) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, as amended, (42 U.S.C. 
9619(e)(2)(C)) is amended by deleting ``, and before January 1, 1996''.
    Section 119(g)(5) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, as amended, (42 U.S.C. 
9619(g)(5)) is amended by deleting ``, or after December 31, 1995''.


                 Leaking Underground Storage Tank program

    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 the uses authorized 
under section 9004(f) of the Solid Waste Disposal Act, and for 
construction, alteration, repair, rehabilitation, and renovation of 
facilities, not to exceed $75,000 per project, $72,500,000, to remain 
available until expended: Provided, That hereafter, the Administrator 
is authorized to enter into assistance agreements with Federally 
recognized Indian tribes on such terms and conditions as the 
Administrator deems appropriate for the same purposes as are set forth 
in section 9003(h)(7) of the Resource Conservation and Recovery Act.


                            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.


                    state and tribal assistance grants

    For environmental programs and infrastructure assistance, including 
capitalization grants for State revolving funds and performance 
partnership grants, $3,386,750,000, 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 $775,000,000 shall be for 
capitalization grants for the Drinking Water State Revolving Funds 
under section 1452 of the Safe Drinking Water Act, as amended, except 
that, notwithstanding section 1452(n) of the Safe Drinking Water Act, 
as amended, none of the funds made available under this heading in this 
Act, or in previous appropriations acts, shall be reserved by the 
Administrator for health effects studies on drinking water 
contaminants, $50,000,000 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, $30,000,000 for grants to the State of 
Alaska to address drinking water and wastewater infrastructure needs of 
rural and Alaska Native Villages, $301,750,000 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 joint explanatory statement 
of the committee of conference accompanying this Act (H.R. 4194); and 
$880,000,000 for grants, including associated program support costs, to 
States, federally recognized tribes, interstate agencies, tribal 
consortia, and air pollution control agencies for multi-media or single 
media pollution prevention, control and abatement and related 
activities, including activities pursuant to the provisions set forth 
under this heading in Public Law 104-134, 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 
of 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, beginning in fiscal year 1999 and thereafter, 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, notwithstanding the matching requirement in Public Law 
104-204 for funds appropriated under this heading for grants to the 
State of Texas for improving wastewater treatment for the Colonias, 
such funds that remain unobligated may also be used for improving water 
treatment for the Colonias, and shall be matched by State funds from 
State resources equal to 20 percent of such unobligated funds: Provided 
further, That, hereafter the Administrator is authorized to enter into 
assistance agreements with Federally recognized Indian tribes on such 
terms and conditions as the Administrator deems appropriate for the 
development and implementation of programs to manage hazardous waste, 
and underground storage tanks: Provided further, That beginning in 
fiscal year 1999 and thereafter, pesticide program implementation 
grants under section 23(a)(1) of the Federal Insecticide, Fungicide and 
Rodenticide Act, as amended, shall be available for pesticide program 
development and implementation, including enforcement and compliance 
activities: Provided further, That, notwithstanding section 603(d)(7) 
of the Federal Water Pollution Control Act, as amended, the limitation 
on the amounts in a State water pollution control revolving fund that 
may be used by a State to administer the fund shall not apply to 
amounts included as principal in loans made by such fund in fiscal year 
1999 and prior years where such amounts represent costs of 
administering the fund, to the extent that such amounts are or were 
deemed reasonable by the Administrator, accounted for separately from 
other assets in the fund, and used for eligible purposes of the fund, 
including administration.


                           working capital fund

    Under this heading in Public Law 104-204, after the phrase, ``that 
such fund shall be paid in advance'', insert ``or reimbursed''.


                         ADMINISTRATIVE PROVISION

    Not later than March 31, 1999, the Administrator of the 
Environmental Protection Agency shall issue regulations amending 40 
C.F.R. 112 to comply with the requirements of the Edible Oil Regulatory 
Reform Act (Public Law 104-55). Such regulations shall differentiate 
between and establish separate classes for animal fats and oils and 
greases, and fish and marine mammal oils (as described in that Act), 
and other oils and greases, and shall apply standards to such different 
classes of fats and oils based on differences in the physical, 
chemical, biological, and other properties, and in the environmental 
effects, of the classes. None of the funds made available by this Act 
or in subsequent Acts may be used by the Environmental Protection 
Agency to issue or to establish an interpretation or guidance relating 
to fats, oils, and greases (as described in Public Law 104-55) that 
does not comply with the requirements of the Edible Oil Regulatory 
Reform Act.

                   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, $5,026,000.


   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, $2,675,000: 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.

                 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, $34,666,000, 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.), 
$307,745,000, and, notwithstanding 42 U.S.C. 5203, to remain available 
until expended: Provided, That of the funds made available under this 
heading in this and prior Appropriations Acts which are eligible for 
grants to the State of California under section 404 of the Stafford 
Disaster Relief and Emergency Assistance Act, $5,000,000 shall be for a 
pilot project of seismic retrofit technology at California State 
University, San Bernardino, $5,000,000 shall be for seismic retrofit at 
the San Bernardino County Courthouse, and $30,000,000 shall be for a 
project at the Loma Linda University Medical Center hospital using 
laser technology demonstrating non-disruptive retrofitting.


             disaster assistance direct loan program account

    For the cost of direct loans, $1,355,000, 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, $440,000.


                          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 maximum rate payable 
for senior level positions under 5 U.S.C. 5376; 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, $171,138,000.


                       Office of Inspector General

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $5,400,000.


               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, $240,824,000: 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), $25,000,000 of the funds made available under this heading 
shall be available until expended for project grants: Provided further, 
That the United States Fire Administration shall conduct a 12-month 
pilot project to promote the installation and maintenance of smoke 
detectors in the localities of highest risk for residential fires: 
Provided further, That the United States Fire Administration shall 
transmit the results of its pilot project to the Consumer Product 
Safety Commission and the Congress.


                 Radiological Emergency Preparedness Fund

    There is hereby established in the Treasury a Radiological 
Emergency Preparedness Fund, which shall be available under the Atomic 
Energy Act of 1954, as amended, and Executive Order 12657, for offsite 
radiological emergency planning, preparedness, and response. Beginning 
in fiscal year 1999 and thereafter, the Director of the Federal 
Emergency Management Agency (FEMA) shall promulgate through rulemaking 
fees to be assessed and collected, applicable to persons subject to 
FEMA's radiological emergency preparedness regulations. The aggregate 
charges assessed pursuant to this section during fiscal year 1999 shall 
not be less than 100 percent of the amounts anticipated by FEMA 
necessary 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 costs of providing such 
services, including administrative costs of collecting such fees. Fees 
received pursuant to this section shall be deposited in the Fund as 
offsetting collections and will become available for authorized 
purposes on October 1, 1999, and remain available until expended.
    For necessary expenses of the Fund for fiscal year 1999, 
$12,849,000, to remain available until expended.


                    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, as amended, not to exceed 
$22,685,000 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, 
2000. In fiscal year 1999, no funds in excess of: (1) $47,000,000 for 
operating expenses; (2) $343,989,000 for agents' commissions and taxes; 
and (3) $60,000,000 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 1999, 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 ``1998'' and inserting ``1999''.
    Section 1319 of the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4026), is amended by striking ``September 30, 1998'' 
and inserting ``September 30, 1999''.
    Section 1336 of the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4056), is amended by striking ``September 30, 1998'' 
and inserting ``September 30, 1999''.
    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 ``September 30, 1998'' and inserting ``September 30, 1999''.

                    General Services Administration


                     consumer information center fund

    For necessary expenses of the Consumer Information Center, 
including services authorized by 5 U.S.C. 3109, $2,619,000, 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 1999 
in excess of $7,500,000 shall remain in the fund and shall not be 
available for expenditure except as authorized in appropriations Acts.

             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, $5,480,000,000, to 
remain available until September 30, 2000.


                   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, $5,653,900,000, to remain available until September 30, 2000: 
Provided, That none of the funds provided under this heading may be 
utilized to support the development or operations of the International 
Space Station: Provided further, That this limitation shall not 
preclude the use of funds provided under this heading for the conduct 
of science, aeronautics, space transportation and technology activities 
utilizing or enabled by the International Space Station.


                             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, 
$2,511,100,000, to remain available until September 30, 2000.


                       OFFICE OF INSPECTOR GENERAL

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$20,000,000.


                        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, 2001.
    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, 1999 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.
    NASA shall develop a revised appropriation structure for submission 
in the fiscal year 2000 budget request consisting of five 
appropriations accounts (International Space Station; Launch Vehicles 
and Payload Operations; Science, Aeronautics and Technology; Mission 
Support; and Office of Inspector General).

                  National Credit Union Administration


                        central liquidity facility

    During fiscal year 1999, 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 1999 shall not exceed $176,000: Provided further, That 
$2,000,000, 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, $2,770,000,000, of which not to exceed 
$257,460,000, 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, 2000: 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 none of the 
funds appropriated or otherwise made available to the National Science 
Foundation in this or any prior Act may be obligated or expended by the 
National Science Foundation to enter into or extend a grant, contract, 
or cooperative agreement for the support of administering the domain 
name and numbering system of the Internet after September 30, 1998.


                         Major Research Equipment

    For necessary expenses of major construction projects pursuant to 
the National Science Foundation Act of 1950, as amended, $90,000,000, 
to remain available until expended.


                      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, $662,000,000, to remain 
available until September 30, 2000: 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: Provided further, That the Alliances for 
Minority Participation Program is renamed the Louis Stokes Alliances 
for Minority Participation Program.


                          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; $144,000,000: Provided, That contracts may be entered into 
under ``Salaries and expenses'' in fiscal year 1999 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, 
$5,200,000, to remain available until September 30, 2000.

                 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), $90,000,000: 
Provided, That $25,000,000 shall be for a pilot homeownership 
initiative, including an evaluation by an independent third party to 
determine its effectiveness.

                        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, $24,176,000: 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 their domicile and their 
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 twenty-four 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 1999 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 1999 
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 1999 and 
prior fiscal years may be used for implementing comprehensive 
conservation and management plans.
    Sec. 421. 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.
    Sec. 422. Notwithstanding any other law, funds made available by 
this or any other Act or previous Acts for the United States/Mexico 
Foundation for Science may be used for the endowment of such 
Foundation.
    Sec. 423. (a) Within 90 days of the enactment of this Act, the 
Consumer Product Safety Commission shall make all necessary 
arrangements for the Committee on Toxicology of the National Academy of 
Sciences (NAS) to conduct an independent 12-month study of the 
potential toxicologic risks of all flame-retardant chemicals identified 
by the NAS and the Commission as likely candidates for use in 
residential upholstered furniture for the purpose of meeting 
regulations proposed by the Commission for flame resistance of 
residential upholstered furniture.
    (b) Upon completion of its report, the Academy shall send the 
report to the Commission, which shall provide it to the Congress.
    (c) The Commission, before promulgating any notice of proposed 
rulemaking or final rulemaking setting flammability standards for 
residential upholstered furniture, shall consider fully the findings 
and conclusions of the Academy.
    Sec. 424. None of the funds made available in this Act may be used 
for researching methods to reduce methane emissions from cows, sheep, 
or any other ruminant livestock.
    Sec. 425. None of the funds made available in this Act may be used 
to carry out Executive Order No. 13083.
    Sec. 426. Unless otherwise provided for in this Act, no part of any 
appropriation for the Department of Housing and Urban Development shall 
be available for any activity in excess of amounts set forth in the 
budget estimates submitted for the appropriations.
    Sec. 427. National Fallen Firefighters Foundation. (a) 
Establishment and Purposes.--Section 202 of the National Fallen 
Firefighters Foundation Act (36 U.S.C. 5201) is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) primarily--
            ``(A) to encourage, accept, and administer private gifts of 
        property for the benefit of the National Fallen Firefighters' 
        Memorial and the annual memorial service associated with the 
        memorial; and
            ``(B) to, in coordination with the Federal Government and 
        fire services (as that term is defined in section 4 of the 
        Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
        2203)), plan, direct, and manage the memorial service referred 
        to in subparagraph (A) and related activities;'';
        (2) in paragraph (2), by inserting ``and Federal'' after ``non-
    Federal'';
        (3) in paragraph (3)--
            (A) by striking ``State and local'' and inserting 
        ``Federal, State, and local''; and
            (B) by striking ``and'' at the end;
        (4) in paragraph (4), by striking the period at the end and 
    inserting a semicolon; and
        (5) by adding at the end the following:
        ``(5) to provide for a national program to assist families of 
    fallen firefighters and fire departments in dealing with line-of-
    duty deaths of those firefighters; and
        ``(6) to promote national, State, and local initiatives to 
    increase public awareness of fire and life safety.''.
    (b) Board of Directors of Foundation.--Section 203(g)(1) of the 
National Fallen Firefighters Foundation Act (36 U.S.C. 5202(g)(1)) is 
amended by striking subparagraph (A) and inserting the following:
            ``(A) appointing officers or employees;''.
    (c) Administrative Services and Support.--Section 205 of the 
National Fallen Firefighters Foundation Act (36 U.S.C. 5204) is amended 
to read as follows:

``SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.

    ``(a) In General.--During the 10-year period beginning on the date 
of the enactment of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1999, 
the Administrator may--
        ``(1) provide personnel, facilities, and other required 
    services for the operation of the Foundation; and
        ``(2) accept reimbursement for the assistance provided under 
    paragraph (1).
    ``(b) Reimbursement.--Any amounts received under subsection (a)(2) 
as reimbursement for assistance shall be deposited in the Treasury to 
the credit of the appropriations then current and chargeable for the 
cost of providing that assistance.
    ``(c) Prohibition.--Notwithstanding any other provision of law, no 
Federal personnel or stationery may be used to solicit funding for the 
Foundation.''.
    Sec. 428. Ineligibility of Individuals Convicted of Manufacturing 
or Producing Methamphetamine for Certain Housing Assistance. Section 16 
of the United States Housing Act of 1937 (42 U.S.C. 1437n) is amended 
by adding at the end the following:
    ``(f) Ineligibility of Individuals Convicted of Manufacturing or 
Producing Methamphetamine On the Premises.--Notwithstanding any other 
provision of law, a public housing agency shall establish standards for 
occupancy in public housing dwelling units and assistance under section 
8 that--
        ``(1) permanently prohibit occupancy in any public housing 
    dwelling unit by, and assistance under section 8 for, any person 
    who has been convicted of manufacturing or otherwise producing 
    methamphetamine on the premises in violation of any Federal or 
    State law; and
        ``(2) immediately and permanently terminate the tenancy in any 
    public housing unit of, and the assistance under section 8 for, any 
    person who is convicted of manufacturing or otherwise producing 
    methamphetamine on the premises in violation of any Federal or 
    State law.''.
    Sec. 429. (a) Not later than 90 days after the date of the 
enactment of this Act, the Consumer Product Safety Commission shall 
propose for comment a revocation of the amendments to the standards for 
the flammability of children's sleepwear sizes 0 through 6X (contained 
in regulations published at 16 CFR part 1615) and 7 through 14 
(contained in regulations published at 16 CFR part 1616) issued by the 
Commission on September 9, 1996 (61 FR 47634), and any subsequent 
amendments thereto.
    (b) The General Accounting Office shall undertake a review of 
children's burn incident data relating to burns from the ignition of 
children's sleepwear from small open flame sources for the period July 
1, 1997 through January 1, 1999. Such review shall be completed by 
April 1, 1999 and shall be submitted to the Congress and to the 
Consumer Product Safety Commission.
    (c) Not later than July 1, 1999, the Consumer Product Safety 
Commission shall promulgate a final rule revoking, maintaining or 
modifying the amendments issued by the Commission on September 9, 1996 
(61 FR 47634) and any subsequent amendments thereto amending the 
Flammable Fabrics Act standards for the flammability of children's 
sleepwear, considering and substantively addressing the findings of the 
General Accounting Office and other information available to the 
Commission.
    (d) None of the following shall apply with respect to the 
promulgation of the amendment prescribed by subsection (a):
        (1) The Consumer Product Safety Act (15 U.S.C. 2051 et seq.).
        (2) The Flammable Fabrics Act (15 U.S.C. 1191 et seq.).
        (3) Chapter 6 of title 5, United States Code.
        (4) The National Environmental Policy Act of 1969 (42 U.S.C. 
    4321 et seq.).
        (5) The Small Business Regulatory Enforcement Fairness Act of 
    1996 (Public Law 104-121).
        (6) Any other statute or Executive order.
    Sec. 430. Comprehensive Accountability Study for Federally-Funded 
Research. (a) Study.--The Director of the Office of Science and 
Technology Policy, in consultation with the Director of the Office of 
Management and Budget, may enter into an agreement with the National 
Academy of Sciences for the Academy to conduct a comprehensive study to 
develop methods for evaluating federally-funded research and 
development programs. This study shall--
        (1) recommend processes to determine an acceptable level of 
    success for federally-funded research and development programs by--
            (A) describing the research process in the various 
        scientific and engineering disciplines;
            (B) describing in the different sciences what measures and 
        what criteria each community uses to evaluate the success or 
        failure of a program, and on what time scales these measures 
        are considered reliable--both for exploratory long-range work 
        and for short-range goals; and
            (C) recommending how these measures may be adapted for use 
        by the Federal Government to evaluate federally-funded research 
        and development programs;
        (2) assess the extent to which agencies incorporate independent 
    merit-based evaluation into the formulation of the strategic plans 
    of funding agencies and if the quantity or quality of this type of 
    input is unsatisfactory;
        (3) recommend mechanisms for identifying federally-funded 
    research and development programs which are unsuccessful or 
    unproductive;
        (4) evaluate the extent to which independent, merit-based 
    evaluation of federally-funded research and development programs 
    and projects achieves the goal of eliminating unsuccessful or 
    unproductive programs and projects; and
        (5) investigate and report on the validity of using 
    quantitative performance goals for aspects of programs which relate 
    to administrative management of the program and for which such 
    goals would be appropriate, including aspects related to--
            (A) administrative burden on contractors and recipients of 
        financial assistance awards;
            (B) administrative burdens on external participants in 
        independent, merit-based evaluations;
            (C) cost and schedule control for construction projects 
        funded by the program;
            (D) the ratio of overhead costs of the program relative to 
        the amounts expended through the program for equipment and 
        direct funding of research; and
            (E) the timeliness of program responses to requests for 
        funding, participation, or equipment use.
    (b) Independent Merit-Based Evaluation Defined.--The term 
``independent merit-based evaluation'' means review of the scientific 
or technical quality of research or development, conducted by experts 
who are chosen for their knowledge of scientific and technical fields 
relevant to the evaluation and who--
        (1) in the case of the review of a program activity, do not 
    derive long-term support from the program activity; or
        (2) in the case of the review of a project proposal, are not 
    seeking funds in competition with the proposal.
    Sec. 431. Insurance; Indemnification; Liability. (a) In General.--
The Administrator may provide liability insurance for, or 
indemnification to, the developer of an experimental aerospace vehicle 
developed or used in execution of an agreement between the 
Administration and the developer.
    (b) Terms and Conditions.--
        (1) In general.--Except as otherwise provided in this section, 
    the insurance and indemnification provided by the Administration 
    under subsection (a) to a developer shall be provided on the same 
    terms and conditions as insurance and indemnification is provided 
    by the Administration under section 308 of the National Aeronautics 
    and Space Act of 1958 (42 U.S.C. 2458b) to the user of a space 
    vehicle.
        (2) Insurance.--
            (A) In general.--A developer shall obtain liability 
        insurance or demonstrate financial responsibility in amounts to 
        compensate for the maximum probable loss from claims by--
                (i) a third party for death, bodily injury, or property 
            damage, or loss resulting from an activity carried out in 
            connection with the development or use of an experimental 
            aerospace vehicle; and
                (ii) the United States Government for damage or loss to 
            Government property resulting from such an activity.
            (B) Maximum required.--The Administrator shall determine 
        the amount of insurance required, but, except as provided in 
        subparagraph (C), that amount shall not be greater than the 
        amount required under section 70112(a)(3) of title 49, United 
        States Code, for a launch. The Administrator shall publish 
        notice of the Administrator's determination and the applicable 
        amount or amounts in the Federal Register within 10 days after 
        making the determination.
            (C) Increase in dollar amounts.--The Administrator may 
        increase the dollar amounts set forth in section 70112(a)(3)(A) 
        of title 49, United States Code, for the purpose of applying 
        that section under this section to a developer after 
        consultation with the Comptroller General and such experts and 
        consultants as may be appropriate, and after publishing notice 
        of the increase in the Federal Register not less than 180 days 
        before the increase goes into effect. The Administrator shall 
        make available for public inspection, not later than the date 
        of publication of such notice, a complete record of any 
        correspondence received by the Administration, and a transcript 
        of any meetings in which the Administration participated, 
        regarding the proposed increase.
            (D) Safety review required before administrator provides 
        insurance.--The Administrator may not provide liability 
        insurance or indemnification under subsection (a) unless the 
        developer establishes to the satisfaction of the Administrator 
        that appropriate safety procedures and practices are being 
        followed in the development of the experimental aerospace 
        vehicle.
        (3) No indemnification without cross-waiver.--Notwithstanding 
    subsection (a), the Administrator may not indemnify a developer of 
    an experimental aerospace vehicle under this section unless there 
    is an agreement between the Administration and the developer 
    described in subsection (c).
        (4) Application of certain procedures.--If the Administrator 
    requests additional appropriations to make payments under this 
    section, like the payments that may be made under section 308(b) of 
    the National Aeronautics and Space Act of 1958 (42 U.S.C. 
    2458b(b)), then the request for those appropriations shall be made 
    in accordance with the procedures established by subsections (d) 
    and (e) of section 70113 of title 49, United States Code.
    (c) Cross-Waivers.--
        (1) Administrator authorized to waive.--The Administrator, on 
    behalf of the United States, and its departments, agencies, and 
    related entities, may reciprocally waive claims with a developer 
    and with the related entities of that developer under which each 
    party to the waiver agrees to be responsible, and agrees to ensure 
    that its own related entities are responsible, for damage or loss 
    to its property for which it is responsible, or for losses 
    resulting from any injury or death sustained by its own employees 
    or agents, as a result of activities connected to the agreement or 
    use of the experimental aerospace vehicle.
        (2) Limitations.--
            (A) Claims.--A reciprocal waiver under paragraph (1) may 
        not preclude a claim by any natural person (including, but not 
        limited to, a natural person who is an employee of the United 
        States, the developer, or the developer's subcontractors) or 
        that natural person's estate, survivors, or subrogees for 
        injury or death, except with respect to a subrogee that is a 
        party to the waiver or has otherwise agreed to be bound by the 
        terms of the waiver.
            (B) Liability for negligence.--A reciprocal waiver under 
        paragraph (1) may not absolve any party of liability to any 
        natural person (including, but not limited to, a natural person 
        who is an employee of the United States, the developer, or the 
        developer's subcontractors) or such a natural person's estate, 
        survivors, or subrogees for negligence, except with respect to 
        a subrogee that is a party to the waiver or has otherwise 
        agreed to be bound by the terms of the waiver.
            (C) Indemnification for damages.--A reciprocal waiver under 
        paragraph (1) may not be used as the basis of a claim by the 
        Administration or the developer for indemnification against the 
        other for damages paid to a natural person, or that natural 
        person's estate, survivors, or subrogees, for injury or death 
        sustained by that natural person as a result of activities 
        connected to the agreement or use of the experimental aerospace 
        vehicle.
        (3) Effect on previous waivers.--Subsection (c) applies to any 
    waiver of claims entered into by the Administration without regard 
    to whether it was entered into before, on, or after the date of the 
    enactment of this Act.
    (d) Definitions.--In this section:
        (1) Administration.--The term ``Administration'' means the 
    National Aeronautics and Space Administration.
        (2) Administrator.--The term ``Administrator'' means the 
    Administrator of the National Aeronautics and Space Administration.
        (3) Common terms.--Any term used in this section that is 
    defined in the National Aeronautics and Space Act of 1958 (42 
    U.S.C. 2451 et seq.) has the same meaning in this section as when 
    it is used in that Act.
        (4) Developer.--The term ``developer'' means a United States 
    person (other than a natural person) who--
            (A) is a party to an agreement that was in effect before 
        the date of the enactment of this Act with the Administration 
        for the purpose of developing new technology for an 
        experimental aerospace vehicle;
            (B) owns or provides property to be flown or situated on 
        that vehicle; or
            (C) employs a natural person to be flown on that vehicle.
        (5) Experimental aerospace vehicle.--The term ``experimental 
    aerospace vehicle'' means an object intended to be flown in, or 
    launched into, suborbital flight for the purpose of demonstrating 
    technologies necessary for a reusable launch vehicle, developed 
    under an agreement between the Administration and a developer that 
    was in effect before the date of the enactment of this Act.
        (6) Related entity.--The term ``related entity'' includes a 
    contractor or subcontractor at any tier, a supplier, a grantee, and 
    an investigator or detailee.
    (e) Relationship to Other Laws.--
        (1) Section 308 of national aeronautics and space act of 
    1958.--This section does not apply to any object, transaction, or 
    operation to which section 308 of the National Aeronautics and 
    Space Act of 1958 (42 U.S.C. 2458b) applies.
        (2) Chapter 701 of title 49, united states code.--The 
    Administrator may not provide indemnification to a developer under 
    this section for launches subject to license under section 
    70117(g)(1) of title 49, United States Code.
    (f) Termination.--
        (1) In general.--The provisions of this section shall terminate 
    on December 31, 2002, except that the Administrator may extend the 
    termination date to a date not later than September 30, 2005, if 
    the Administrator determines that such an extension is necessary to 
    cover the operation of an experimental aerospace vehicle.
        (2) Effect of termination on agreements.--The termination of 
    this section does not terminate or otherwise affect a cross-waiver 
    agreement, insurance agreement, indemnification agreement, or any 
    other agreement entered into under this section except as may be 
    provided in that agreement.
    Sec. 432. Vietnam Veterans Allotment. The Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.) is amended by adding at the 
end:


     ``OPEN SEASON FOR CERTAIN ALASKA NATIVE VETERANS FOR ALLOTMENTS

    ``Sec. 41. (a) In General.--(1) During the eighteen month period 
following promulgation of implementing rules pursuant to subsection 
(e), a person described in subsection (b) shall be eligible for an 
allotment of not more than two parcels of federal land totaling 160 
acres or less under the Act of May 17, 1906 (chapter 2469; 34 Stat. 
197), as such Act was in effect before December 18, 1971.
    ``(2) Allotments may be selected only from lands that were vacant, 
unappropriated, and unreserved on the date when the person eligible for 
the allotment first used and occupied those lands.
    ``(3) The Secretary may not convey allotments containing any of the 
following--
        ``(A) lands upon which a native or non-native campsite is 
    located, except for a campsite used primarily by the person 
    selecting the allotment;
        ``(B) lands selected by, but not conveyed to, the State of 
    Alaska pursuant to the Alaska Statehood Act or any other provision 
    of law;
        ``(C) lands selected by, but not conveyed to, a Village or 
    Regional Corporation;
        ``(D) lands designated as wilderness by statute;
        ``(E) acquired lands;
        ``(F) lands containing a building, permanent structure, or 
    other development owned or controlled by the United States, another 
    unit of government, or a person other than the person selecting the 
    allotment;
        ``(G) lands withdrawn or reserved for national defense purposes 
    other than National Petroleum Reserve-Alaska;
        ``(H) National Forest Lands; and
        ``(I) lands selected or claimed, but not conveyed, under a 
    public land law, including but not limited to the following:
            ``(1) Lands within a recorded mining claim.
            ``(2) Home sites.
            ``(3) Trade and Manufacturing sites.
            ``(4) Reindeer sites and Reindeer headquarters sites.
            ``(5) Cemetery sites.
    ``(4) A person who qualifies for an allotment on lands prohibited 
from conveyance by a provision of subsection (a)(3) may select an 
alternative allotment from the following lands located within the 
geographic boundaries of the same Regional Corporation as the excluded 
allotment--
        ``(A) lands withdrawn pursuant to section 11(a)(1) of this Act 
    which were not selected, or were relinquished after selection;
        ``(B) lands contiguous to the outer boundary of lands withdrawn 
    pursuant to section 11(a)(1)(C) of this Act, except lands excluded 
    from selection by a provision of subsection (a)(3) and lands within 
    a National Park; and
        ``(C) vacant, unappropriated and unreserved lands.
    ``(5) After consultation with a person entitled to an allotment 
within a Conservation System Unit, the Secretary may convey alternative 
lands of equal acreage, including lands within a Conservation System 
Unit, to that person if the Secretary determines that the allotment 
would be incompatible with a purpose for which the Conservation System 
Unit was established.
    ``(6) All conveyances under this section shall--
        ``(A) be subject to valid existing rights, including any right 
    of the United States to income derived, directly or indirectly, 
    from a lease, license, permit, right-of-way or easement; and
        ``(B) reserve to the United States deposits of oil, gas and 
    coal, together with the right to explore, mine, and remove these 
    minerals, on lands which the Secretary determines to be 
    prospectively valuable for development.
    ``(b) Eligible Person.--(1) A person is eligible to select an 
allotment under this section if that person--
        ``(A) would have been eligible for an allotment under the Act 
    of May 17, 1906 (chapter 2469; 34 Stat. 197), as that Act was in 
    effect before December 18, 1971; and
        ``(B) is a veteran who served during the period between January 
    1, 1969 and December 31, 1971 and--
            ``(i) served at least 6 months between January 1, 1969 and 
        June 2, 1971; or
            ``(ii) enlisted or was drafted into military service after 
        June 2, 1971 but before December 3, 1971.
    ``(2) The personal representative of the estate of a decedent who 
was eligible under subsection (b)(1) may, for the benefit of the heirs, 
select an allotment if, during the period specified in subsection 
(b)(1)(B), the decedent--
        ``(A) was killed in action;
        ``(B) was wounded in action and subsequently died as a direct 
    consequence of that wound, as determined by the Department of 
    Veterans Affairs; or
        ``(C) died while a prisoner of war.
    ``(3) No person who received an allotment or has a pending 
allotment under the Act of May 17, 1906 may receive an allotment under 
this section.
    ``(c) Study and Report.--(1) The Secretary of the Interior shall 
conduct a study to identify and assess the circumstances of veterans of 
the Vietnam era who--
        ``(A) served during a period other than that specified in 
    subsection (b)(1)(B);
        ``(B) were eligible for an allotment under the Act of May 17, 
    1906; and
        ``(C) did not apply for an allotment under that Act.
    ``(2) The Secretary shall, within one year of the enactment of this 
section, issue a written report on the study, including findings and 
recommendations, to the Committee on Appropriations and the Committee 
on Energy and Natural Resources in the Senate and the Committee on 
Appropriations and the Committee on Resources in the House of 
Representatives.
    ``(d) Definitions.--For the purposes of this section, the terms 
`veteran' and `Vietnam era' have the meanings given those terms by 
paragraphs (2) and (29), respectively, of section 101 of title 38, 
United States Code.
    ``(e) Regulations.--No later than 18 months after enactment of this 
section, the Secretary of the Interior shall promulgate, after 
consultation with Alaska Natives groups, rules to carry out this 
section.''.
    Sec. 433. The Administrator of the National Aeronautics and Space 
Administration shall develop and deliver to the House and Senate 
Committees on Appropriations, no later than 60 days after the date of 
the enactment of this Act, a study of alternative approaches whereby 
NASA could contract with a Russian entity or entities for goods and 
services related to the International Space Station. The study shall 
evaluate, at a minimum, government-to-government, government-to-
industry, and industry-to-industry arrangements. The study shall 
evaluate the pros and cons of each possible approach, addressing the 
following requirements: (1) ensure that NASA receives value for each 
dollar spent; (2) ensure that the funds provided can be audited; (3) 
define appropriate milestones; and, (4) adhere to all relevant 
technology transfer and export control laws.
    Sec. 434. The National Aeronautics and Space Administration Lewis 
Research Center in Cleveland, Ohio, shall be redesignated as the 
``National Aeronautics and Space Administration John H. Glenn Research 
Center at Lewis Field''. Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the National 
Aeronautics and Space Administration Lewis Research Center in Ohio 
shall be deemed to be a reference to the ``National Aeronautics and 
Space Administration John H. Glenn Research Center at Lewis Field''.
    Sec. 435. The proposed Amendments to Accounting for Property, 
Plant, and Equipment (February 1998) (Amending Statements of Federal 
Financial Accounting Standards Nos. 6 and 8, ``Accounting for Property, 
Plant, and Equipment'' and ``Supplementary Stewardship Reporting'') may 
be adopted without the prior notification and waiting period required 
by section 307 of the Chief Financial Officers Act of 1990 (Public Law 
101-576).

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Quality Housing 
and Work Responsibility Act of 1998''.
    (b) Table of Contents.--The table of contents for this title is as 
follows:

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

Sec. 501. Short title and table of contents.
Sec. 502. Findings and purposes.
Sec. 503. Effective date and regulations.

                     Subtitle A--General Provisions

Sec. 505. Declaration of policy and public housing agency organization.
Sec. 506. Definitions.
Sec. 507. Minimum rent.
Sec. 508. Determination of adjusted income and median income.
Sec. 509. Family self-sufficiency program.
Sec. 510. Prohibition on use of funds.
Sec. 511. Public housing agency plan.
Sec. 512. Community service and family self-sufficiency requirements.
Sec. 513. Income targeting.
Sec. 514. Repeal of Federal preferences.
Sec. 515. Joint ventures and consortia of public housing agencies; 
          repeal of energy conservation provisions.
Sec. 516. Public housing agency mortgages and security interests.
Sec. 517. Mental health action plan.

                       Subtitle B--Public Housing

                Part 1--Capital and Operating Assistance

Sec. 518. Contributions for lower income housing projects.
Sec. 519. Public housing capital and operating funds.
Sec. 520. Total development costs.
Sec. 521. Sanctions for improper use of amounts.
Sec. 522. Repeal of modernization fund.

              Part 2--Admissions and Occupancy Requirements

Sec. 523. Family choice of rental payment.
Sec. 524. Occupancy by police officers and over-income families.
Sec. 525. Site-based waiting lists.
Sec. 526. Pet ownership.

    Part 3--Management, Homeownership, and Demolition and Disposition

Sec. 529. Contract provisions.
Sec. 530. Housing quality requirements.
Sec. 531. Demolition and disposition of public housing.
Sec. 532. Resident councils and resident management corporations.
Sec. 533. Conversion of public housing to vouchers; repeal of family 
          investment centers.
Sec. 534. Transfer of management of certain housing to independent 
          manager at request of residents.
Sec. 535. Demolition, site revitalization, replacement housing, and 
          tenant-based assistance grants for projects.
Sec. 536. Homeownership.
Sec. 537. Required conversion of distressed public housing to tenant-
          based assistance.
Sec. 538. Linking services to public housing residents.
Sec. 539. Mixed-finance public housing.

        Subtitle C--Section 8 Rental and Homeownership Assistance

Sec. 545. Merger of certificate and voucher programs.
Sec. 546. Public housing agencies.
Sec. 547. Administrative fees.
Sec. 548. Law enforcement and security personnel in assisted housing.
Sec. 549. Advance notice to tenants of expiration, termination, or owner 
          nonrenewal of assistance contract.
Sec. 550. Technical and conforming amendments.
Sec. 551. Funding and allocation.
Sec. 552. Treatment of common areas.
Sec. 553. Portability.
Sec. 554. Leasing to voucher holders.
Sec. 555. Homeownership option.
Sec. 556. Renewals.
Sec. 557. Manufactured housing demonstration program.
Sec. 558. Authorizations of appropriations.
Sec. 559. Rulemaking and implementation.

           Subtitle D--Home Rule Flexible Grant Demonstration

Sec. 561. Home rule flexible grant demonstration program.

   Subtitle E--Accountability and Oversight of Public Housing Agencies

Sec. 563. Study of alternative methods for evaluating public housing 
          agencies.
Sec. 564. Public housing management assessment program.
Sec. 565. Expansion of powers for dealing with public housing agencies 
          in substantial default.
Sec. 566. Audits.
Sec. 567. Advisory council for housing authority of New Orleans.
Sec. 568. Treatment of troubled PHA's.

     Subtitle F--Safety and Security in Public and Assisted Housing

Sec. 575. Provisions applicable only to public housing and section 8 
          assistance.
Sec. 576. Screening of applicants for federally assisted housing.
Sec. 577. Termination of tenancy and assistance for illegal drug users 
          and alcohol abusers in federally assisted housing.
Sec. 578. Ineligibility of dangerous sex offenders for admission to 
          public housing.
Sec. 579. Definitions.

               Subtitle G--Repeals and Related Provisions

Sec. 581. Annual report.
Sec. 582. Repeals relating to public housing and section 8 programs.
Sec. 583. Public housing flexibility in CHAS.
Sec. 584. Use of American products.
Sec. 585. GAO study on housing assistance program costs.
Sec. 586. Amendments to Public and Assisted Housing Drug Elimination Act 
          of 1990.
Sec. 587. Review of drug elimination program contracts.
Sec. 588. Prohibition on use of assistance for employment relocation 
          activities.
Sec. 589. Treatment of occupancy standards.
Sec. 590. Income eligibility for HOME and CDBG programs.
Sec. 591. Report on single family and multifamily homes.
Sec. 592. Use of assisted housing by aliens.
Sec. 593. Protection of senior homeowners under reverse mortgage 
          program.
Sec. 594. Housing counseling.
Sec. 595. Native American housing assistance.
Sec. 596. CDBG public services cap.
Sec. 597. Moderate rehabilitation program.
Sec. 598. National cities in schools program.
Sec. 599. Tenant participation in multifamily housing projects.
Sec. 599A. Clarification regarding recreational vehicles.
Sec. 599B. Determination of low-income eligibility for homeownership 
          assistance.
Sec. 599C. Amendments to rural housing programs.
Sec. 599D. Reauthorization of national flood insurance program.
Sec. 599E. Assistance for self-help housing providers
Sec. 599F. Special mortgage insurance assistance.
Sec. 599G. Rehabilitation demonstration grant program.
Sec. 599H. Assistance for certain localities.

SEC. 502. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
        (1) there exists throughout the Nation a need for decent, safe, 
    and affordable housing;
        (2) the inventory of public housing units owned, assisted, or 
    operated by public housing agencies, an asset in which the Federal 
    Government has invested over $90,000,000,000, has traditionally 
    provided rental housing that is affordable to low-income persons;
        (3) despite serving this critical function, the public housing 
    system is plagued by a series of problems, including the 
    concentration of very poor people in very poor neighborhoods and 
    disincentives for economic self-sufficiency;
        (4) the Federal method of overseeing every aspect of public 
    housing by detailed and complex statutes and regulations has 
    aggravated the problem and has placed excessive administrative 
    burdens on public housing agencies; and
        (5) the interests of low-income persons, and the public 
    interest, will best be served by a reformed public housing program 
    that--
            (A) consolidates many public housing programs into programs 
        for the operation and capital needs of public housing;
            (B) streamlines program requirements;
            (C) vests in public housing agencies that perform well the 
        maximum feasible authority, discretion, and control with 
        appropriate accountability to public housing residents, 
        localities, and the general public; and
            (D) rewards employment and economic self-sufficiency of 
        public housing residents.
    (b) Purposes.--The purpose of this title is to promote homes that 
are affordable to low-income families in safe and healthy environments, 
and thereby contribute to the supply of affordable housing, by--
        (1) deregulating and decontrolling public housing agencies, 
    thereby enabling them to perform as property and asset managers;
        (2) providing for more flexible use of Federal assistance to 
    public housing agencies, allowing the authorities to leverage and 
    combine assistance amounts with amounts obtained from other 
    sources;
        (3) facilitating mixed income communities and decreasing 
    concentrations of poverty in public housing;
        (4) increasing accountability and rewarding effective 
    management of public housing agencies;
        (5) creating incentives and economic opportunities for 
    residents of dwelling units assisted by public housing agencies to 
    work, become self-sufficient, and transition out of public housing 
    and federally assisted dwelling units;
        (6) consolidating the voucher and certificate programs for 
    rental assistance under section 8 of the United States Housing Act 
    of 1937 into a single market-driven program that will assist in 
    making tenant-based rental assistance under such section more 
    successful at helping low-income families obtain affordable housing 
    and will increase housing choice for low-income families; and
        (7) remedying the problems of troubled public housing agencies 
    and replacing or revitalizing severely distressed public housing 
    projects.

SEC. 503. EFFECTIVE DATE AND REGULATIONS.

    (a) In General.--The amendments under this title are made on the 
date of the enactment of this Act, but this title shall take effect, 
and the amendments made by this title shall apply beginning upon, 
October 1, 1999, except--
        (1) as otherwise specifically provided in this title; or
        (2) as otherwise specifically provided in any amendment made by 
    this title.
The Secretary may, by notice, implement any provision of this title or 
any amendment made by this title before such date, except to the extent 
that such provision or amendment specifically provides otherwise.
    (b) Savings Provision.--Notwithstanding any amendment under this 
title that is made (in accordance with subsection (a)) on the date of 
the enactment of this Act but applies beginning on October 1, 1999, the 
provisions of law amended by such amendment, as such provisions were in 
effect immediately before the making of such amendment, shall continue 
to apply during the period beginning on the date of the enactment of 
this Act and ending upon October 1, 1999, unless otherwise specifically 
provided by this title.
    (c) Technical Recommendations.--Not later than 9 months after the 
date of the enactment of this Act, the Secretary shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Banking and Financial Services of the House of 
Representatives, recommended technical and conforming legislative 
changes necessary to carry out this title and the amendments made by 
this title.
    (d) List of Obsolete Documents.--Not later than October 1, 1999, 
the Secretary of Housing and Urban Development shall cause to be 
published in the Federal Register a list of all rules, regulations, and 
orders (including all handbooks, notices, and related requirements) 
pertaining to public housing or section 8 tenant-based programs issued 
or promulgated under the United States Housing Act of 1937 before the 
date of the enactment of this Act that are or will be obsolete because 
of the enactment of this Act or are otherwise obsolete.
    (e) Protection of Certain Regulations.--No provision of this title 
may be construed to repeal the regulations of the Secretary regarding 
tenant participation and tenant opportunities in public housing (24 
C.F.R. 964).
    (g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

                     Subtitle A--General Provisions

SEC. 505. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.

    Section 2 of the United States Housing Act of 1937 (42 U.S.C. 1437) 
is amended to read as follows:

``SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.

    ``(a) Declaration of Policy.--It is the policy of the United 
States--
        ``(1) to promote the general welfare of the Nation by employing 
    the funds and credit of the Nation, as provided in this Act--
            ``(A) to assist States and political subdivisions of States 
        to remedy the unsafe housing conditions and the acute shortage 
        of decent and safe dwellings for low-income families;
            ``(B) to assist States and political subdivisions of States 
        to address the shortage of housing affordable to low-income 
        families; and
            ``(C) consistent with the objectives of this title, to vest 
        in public housing agencies that perform well, the maximum 
        amount of responsibility and flexibility in program 
        administration, with appropriate accountability to public 
        housing residents, localities, and the general public;
        ``(2) that the Federal Government cannot through its direct 
    action alone provide for the housing of every American citizen, or 
    even a majority of its citizens, but it is the responsibility of 
    the Government to promote and protect the independent and 
    collective actions of private citizens to develop housing and 
    strengthen their own neighborhoods;
        ``(3) that the Federal Government should act where there is a 
    serious need that private citizens or groups cannot or are not 
    addressing responsibly; and
        ``(4) that our Nation should promote the goal of providing 
    decent and affordable housing for all citizens through the efforts 
    and encouragement of Federal, State, and local governments, and by 
    the independent and collective actions of private citizens, 
    organizations, and the private sector.
    ``(b) Public Housing Agency Organization.--
        ``(1) Required membership.--Except as provided in paragraph 
    (2), the membership of the board of directors or similar governing 
    body of each public housing agency shall contain not less than 1 
    member--
            ``(A) who is directly assisted by the public housing 
        agency; and
            ``(B) who may, if provided for in the public housing agency 
        plan, be elected by the residents directly assisted by the 
        public housing agency.
        ``(2) Exception.--Paragraph (1) shall not apply to any public 
    housing agency--
            ``(A) that is located in a State that requires the members 
        of the board of directors or similar governing body of a public 
        housing agency to be salaried and to serve on a full-time 
        basis; or
            ``(B) with less than 300 public housing units, if--
                ``(i) the agency has provided reasonable notice to the 
            resident advisory board of the opportunity of not less than 
            1 resident described in paragraph (1) to serve on the board 
            of directors or similar governing body of the public 
            housing agency pursuant to such paragraph; and
                ``(ii) within a reasonable time after receipt by the 
            resident advisory board established by the agency pursuant 
            to section 5A(e) of notice under clause (i), the public 
            housing agency has not been notified of the intention of 
            any resident to participate on the board of directors.
        ``(3) Nondiscrimination.--No person shall be prohibited from 
    serving on the board of directors or similar governing body of a 
    public housing agency because of the residence of that person in a 
    public housing project or status as assisted under section 8.''.

SEC. 506. DEFINITIONS.

    Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(b)) is amended as follows:
        (1) Public housing.--In paragraph (1), by inserting after the 
    second sentence the following new sentence: ``The term `public 
    housing' includes dwelling units in a mixed finance project that 
    are assisted by a public housing agency with capital or operating 
    assistance.''.
        (2) Single persons.--In paragraph (3)--
            (A) in subparagraph (A), by striking the third sentence; 
        and
            (B) in subparagraph (B), in the second sentence, by 
        striking ``regulations of the Secretary'' and inserting 
        ``public housing agency plan''.
        (3) Person with disabilities.--In paragraph (3)(E), by adding 
    after the period at the end the following new sentences: 
    ``Notwithstanding any other provision of law, no individual shall 
    be considered a person with disabilities, for purposes of 
    eligibility for low-income housing under this title, solely on the 
    basis of any drug or alcohol dependence. The Secretary shall 
    consult with other appropriate Federal agencies to implement the 
    preceding sentence.''.
        (4) New terms.--Section 3(b) of the United States Housing Act 
    of 1937 (42 U.S.C. 1437a(b)) is amended by adding at the end the 
    following new paragraphs:
    ``(9) Drug-related criminal activity.--The term `drug-related 
criminal activity' means the illegal manufacture, sale, distribution, 
use, or possession with intent to manufacture, sell, distribute, or 
use, of a controlled substance (as such term is defined in section 102 
of the Controlled Substances Act).
    ``(10) Mixed-finance project.--The term `mixed-finance project' 
means a public housing project that meets the requirements of section 
35.
    ``(11) Public housing agency plan.--The term `public housing agency 
plan' means the plan of a public housing agency prepared in accordance 
with section 5A.
    ``(12) Capital fund.--The term `Capital Fund' means the fund 
established under section 9(d).
    ``(13) Operating fund.--The term `Operating Fund' means the fund 
established under section 9(e).''.

SEC. 507. MINIMUM RENT.

    (a) In General.--Section 3(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(a)) is amended by adding at the end the following 
new paragraph:
    ``(3) Minimum rental amount.--
        ``(A) Requirement.--Notwithstanding paragraph (1) of this 
    subsection, the method for rent determination elected pursuant to 
    paragraph (2)(A) of this subsection by a family residing in public 
    housing, section 8(o)(2) of this Act, or section 206(d) of the 
    Housing and Urban-Rural Recovery Act of 1983 (including paragraph 
    (5) of such section), the following entities shall require the 
    following families to pay a minimum monthly rental amount (which 
    amount shall include any amount allowed for utilities) of not more 
    than $50 per month, as follows:
            ``(i) Each public housing agency shall require the payment 
        of such minimum monthly rental amount, which amount shall be 
        determined by the agency, by--
                ``(I) each family residing in a dwelling unit in public 
            housing by the agency;
                ``(II) each family who is assisted under the 
            certificate or moderate rehabilitation program under 
            section 8; and
                ``(III) each family who is assisted under the voucher 
            program under section 8, and the agency shall reduce the 
            monthly assistance payment on behalf of such family as may 
            be necessary to ensure payment of such minimum monthly 
            rental amount.
            ``(ii) The Secretary shall require each family who is 
        assisted under any other program for rental assistance under 
        section 8 to pay such minimum monthly rental amount, which 
        amount shall be determined by the Secretary.
        ``(B) Exception for hardship circumstances.--
            ``(i) In general.--Notwithstanding subparagraph (A), a 
        public housing agency (or the Secretary, in the case of a 
        family described in subparagraph (A)(ii)) shall immediately 
        grant an exemption from application of the minimum monthly 
        rental under such subparagraph to any family unable to pay such 
        amount because of financial hardship, which shall include 
        situations in which (I) the family has lost eligibility for or 
        is awaiting an eligibility determination for a Federal, State, 
        or local assistance program, including a family that includes a 
        member who is an alien lawfully admitted for permanent 
        residence under the Immigration and Nationality Act who would 
        be entitled to public benefits but for title IV of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996; 
        (II) the family would be evicted as a result of the imposition 
        of the minimum rent requirement under subparagraph (A); (III) 
        the income of the family has decreased because of changed 
        circumstance, including loss of employment; (IV) a death in the 
        family has occurred; and (V) other situations as may be 
        determined by the agency (or the Secretary, in the case of a 
        family described in subparagraph (A)(ii)).
            ``(ii) Waiting period.--If a resident requests a hardship 
        exemption under this subparagraph and the public housing agency 
        (or the Secretary, in the case of a family described in 
        subparagraph (A)(ii)) reasonably determines the hardship to be 
        of a temporary nature, an exemption shall not be granted during 
        the 90-day period beginning upon the making of a request for 
        the exemption. A resident may not be evicted during such 90-day 
        period for nonpayment of rent. In such a case, if the resident 
        thereafter demonstrates that the financial hardship is of a 
        long-term basis, the agency (or the Secretary) shall 
        retroactively exempt the resident from the applicability of the 
        minimum rent requirement for such 90-day period.''.
    (b) Repeal of Duplicative Provisions.--Section 402 of the Balanced 
Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 40) is amended 
by striking subsection (a).
    (c) Conforming Amendment.--The third sentence of section 3(a)(1) of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(1)) is 
amended by inserting ``and subject to the requirement under paragraph 
(3)'' before the first comma.
    (d) Effective Date.--The amendments under this section are made on, 
and shall apply beginning upon, the date of the enactment of this Act.

SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

    (a) Adjusted Income.--Paragraph (5) of section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is amended to read as 
follows:
    ``(5) Adjusted income.--The term `adjusted income' means, with 
respect to a family, the amount (as determined by the public housing 
agency) of the income of the members of the family residing in a 
dwelling unit or the persons on a lease, after any income exclusions as 
follows:
        ``(A) Mandatory exclusions.--In determining adjusted income, a 
    public housing agency shall exclude from the annual income of a 
    family the following amounts:
            ``(i) Elderly and disabled families.--$400 for any elderly 
        or disabled family.
            ``(ii) Medical expenses.--The amount by which 3 percent of 
        the annual family income is exceeded by the sum of--
                ``(I) unreimbursed medical expenses of any elderly 
            family or disabled family;
                ``(II) unreimbursed medical expenses of any family that 
            is not covered under subclause (I), except that this 
            subclause shall apply only to the extent approved in 
            appropriation Acts; and
                ``(III) unreimbursed reasonable attendant care and 
            auxiliary apparatus expenses for each handicapped member of 
            the family, to the extent necessary to enable any member of 
            such family (including such handicapped member) to be 
            employed.
            ``(iii) Child care expenses.--Any reasonable child care 
        expenses necessary to enable a member of the family to be 
        employed or to further his or her education.
            ``(iv) Minors, students, and persons with disabilities.--
        $480 for each member of the family residing in the household 
        (other than the head of the household or his or her spouse) who 
        is less than 18 years of age or is attending school or 
        vocational training on a full-time basis, or who is 18 years of 
        age or older and is a person with disabilities.
            ``(v) Child support payments.--Any payment made by a member 
        of the family for the support and maintenance of any child who 
        does not reside in the household, except that the amount 
        excluded under this clause may not exceed $480 for each child 
        for whom such payment is made; except that this clause shall 
        apply only to the extent approved in appropriations Acts.
            ``(vi) Spousal support expenses.--Any payment made by a 
        member of the family for the support and maintenance of any 
        spouse or former spouse who does not reside in the household, 
        except that the amount excluded under this clause shall not 
        exceed the lesser of (I) the amount that such family member has 
        a legal obligation to pay, or (II) $550 for each individual for 
        whom such payment is made; except that this clause shall apply 
        only to the extent approved in appropriations Acts.
            ``(vii) Earned income of minors.--The amount of any earned 
        income of a member of the family who is not--
                ``(I) 18 years of age or older; and
                ``(II) the head of the household (or the spouse of the 
            head of the household).
        ``(B) Permissive exclusions for public housing.--In determining 
    adjusted income, a public housing agency may, in the discretion of 
    the agency, establish exclusions from the annual income of a family 
    residing in a public housing dwelling unit. Such exclusions may 
    include the following amounts:
            ``(i) Excessive travel expenses.--Excessive travel expenses 
        in an amount not to exceed $25 per family per week, for 
        employment- or education-related travel.
            ``(ii) Earned income.--An amount of any earned income of 
        the family, established at the discretion of the public housing 
        agency, which may be based on--
                ``(I) all earned income of the family,
                ``(II) the amount earned by particular members of the 
            family;
                ``(III) the amount earned by families having certain 
            characteristics; or
                ``(IV) the amount earned by families or members during 
            certain periods or from certain sources.
            ``(iii) Others.--Such other amounts for other purposes, as 
        the public housing agency may establish.''.
    (b) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
        (1) In general.--Section 3 of the United States Housing Act of 
    1937 (42 U.S.C. 1437a) is amended--
            (A) by striking the undesignated paragraph that follows 
        subsection (c)(3) (as added by section 515(b) of the Cranston-
        Gonzalez National Affordable Housing Act (Public Law 101-625; 
        104 Stat. 4199)); and
            (B) by adding at the end the following new subsections:
    ``(d) Disallowance of Earned Income From Rent Determinations.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    the rent payable under subsection (a) by a family described in 
    paragraph (3) of this subsection may not be increased as a result 
    of the increased income due to such employment during the 12-month 
    period beginning on the date on which the employment is commenced.
        ``(2) Phase-in of rent increases.--Upon the expiration of the 
    12-month period referred to in paragraph (1), the rent payable by a 
    family described in paragraph (3) may be increased due to the 
    continued employment of the family member described in paragraph 
    (3)(B), except that during the 12-month period beginning upon such 
    expiration the amount of the increase may not be greater than 50 
    percent of the amount of the total rent increase that would be 
    applicable but for this paragraph.
        ``(3) Eligible families.--A family described in this paragraph 
    is a family--
            ``(A) that--
                ``(i) occupies a dwelling unit in a public housing 
            project; or
                ``(ii) receives assistance under section 8; and
            ``(B)(i) whose income increases as a result of employment 
        of a member of the family who was previously unemployed for 1 
        or more years;
            ``(ii) whose earned income increases during the 
        participation of a family member in any family self-sufficiency 
        or other job training program; or
            ``(iii) who is or was, within 6 months, assisted under any 
        State program for temporary assistance for needy families 
        funded under part A of title IV of the Social Security Act and 
        whose earned income increases.
        ``(4) Applicability.--This subsection and subsection (e) shall 
    apply beginning upon October 1, 1999, except that this subsection 
    and subsection (e) shall apply with respect to any family described 
    in paragraph 3(A)(ii) only to the extent provided in advance in 
    appropriations Acts.
    ``(e) Individual Savings Accounts.--
        ``(1) In general.--In lieu of a disallowance of earned income 
    under subsection (d), upon the request of a family that qualifies 
    under subsection (d), a public housing agency may establish an 
    individual savings account in accordance with this subsection for 
    that family.
        ``(2) Deposits to account.--The public housing agency shall 
    deposit in any savings account established under this subsection an 
    amount equal to the total amount that otherwise would be applied to 
    the family's rent payment under subsection (a) as a result of 
    employment.
        ``(3) Withdrawal from account.--Amounts deposited in a savings 
    account established under this subsection may only be withdrawn by 
    the family for the purpose of--
            ``(A) purchasing a home;
            ``(B) paying education costs of family members;
            ``(C) moving out of public or assisted housing; or
            ``(D) paying any other expense authorized by the public 
        housing agency for the purpose of promoting the economic self-
        sufficiency of residents of public and assisted housing.''.
        (2) Savings provision.--Notwithstanding the amendment made by 
    paragraph (1), the provisions of the undesignated paragraph at the 
    end of section 3(c)(3) of the United States Housing Act of 1937, as 
    such section was in effect immediately before the enactment of this 
    Act, shall continue to apply until the effective date under section 
    503 of this Act. Notwithstanding the amendment made by subsection 
    (a) of this section, nor the applicability under section 402(f) of 
    The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) of 
    the amendments made by such section 402, nor any repeal of such 
    section 402(f), the provisions of section 3(b)(5)(G) of the United 
    States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such 
    section was in effect immediately before the date of the enactment 
    of this Act, shall continue to apply until the effective date under 
    section 503 of this Act.
    (c) Median Income.--
        (1) In general.--Section 3(b)(2) of the United States Housing 
    Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
            (A) in the 4th sentence--
                (i) by striking ``County'' and inserting ``and Rockland 
            Counties''; and
                (ii) by inserting ``each'' before ``such county'';
            (B) in the last sentence--
                (i) by striking ``County'' the 1st place it appears and 
            inserting ``or Rockland Counties''; and
                (ii) by striking ``County'' the 2d place it appears and 
            inserting ``and Rockland Counties''; and
            (C) by adding at the end the following new sentences: ``In 
        determining areas that are designated as difficult development 
        areas for purposes of the low-income housing tax credit, the 
        Secretary shall include Westchester and Rockland Counties, New 
        York, in the New York City metropolitan area.''.
        (2) Applicability.--The amendments made by this paragraph are 
    made on, and shall apply beginning upon, the date of the enactment 
    of this Act.
    (d) Availability of Income Matching Information.--
        (1) Availability.--Section 3 of the United States Housing Act 
    of 1937 (42 U.S.C. 1437a), as amended by the preceding provisions 
    of this Act, is further amended by adding at the end the following 
    new subsection:
    ``(f) Availability of Income Matching Information.--
        ``(1) Disclosure to pha.--A public housing agency shall require 
    any family described in paragraph (2) who receives information 
    regarding income, earnings, wages, or unemployment compensation 
    from the Department of Housing and Urban Development pursuant to 
    income verification procedures of the Department to disclose such 
    information, upon receipt of the information, to the public housing 
    agency that owns or operates the public housing dwelling unit in 
    which such family resides or that provides the housing assistance 
    under this Act on behalf of such family, as applicable.
        ``(2) Families covered.--A family described in this paragraph 
    is a family that resides in a dwelling unit--
            ``(A) that is a public housing dwelling unit; or
            ``(B) for which tenant-based assistance is provided under 
        section 8.''.
        (2) Protection of applicants and participants.--Section 904 of 
    the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 
    (42 U.S.C. 3544) is amended--
            (A) in subsection (b)--
                (i) in paragraph (2), by striking ``and'' at the end;
                (iii) in paragraph (3), by striking the period at the 
            end and inserting ``; and''; and
                (ii) by adding at the end the following new paragraph:
        ``(4) only in the case of an applicant or participant that is a 
    member of a family described in section 3(f)(2) of the United 
    States Housing Act of 1937 (42 U.S.C. 1437a(f)(2)), sign an 
    agreement under which the applicant or participant agrees to 
    provide to the appropriate public housing agency the information 
    required under section 3(f)(1) of such Act for the sole purpose of 
    the public housing agency verifying income information pertinent to 
    the applicant's or participant's eligibility or level of benefits, 
    and comply with such agreement.''; and
            (B) in subsection (c)--
                (i) in paragraph (2)(A), in the matter preceding clause 
            (i)--

                    (I) by inserting before ``or'' the first place it 
                appears the following: ``, pursuant to section 3(d)(1) 
                of the United States Housing Act of 1937 from the 
                applicant or participant,''; and
                    (II) by inserting ``or 3(d)(1)'' after ``such 
                section 303(i)''; and

                (ii) in paragraph (3)--

                    (I) in subparagraph (A), by inserting ``, section 
                3(d)(1) of the United States Housing Act of 1937,'' 
                after ``Social Security Act'';
                    (II) in subparagraph (A), by inserting ``or 
                agreement, as applicable,'' after ``consent'';
                    (III) in subparagraph (B), by inserting ``section 
                3(d)(1) of the United States Housing Act of 1937,'' 
                after ``Social Security Act,''; and
                    (IV) in subparagraph (B), by inserting `` such 
                section 3(d)(1),'' after ``such section 303(i),'' each 
                place it appears.

SEC. 509. FAMILY SELF-SUFFICIENCY PROGRAM.

    (a) In General.--Section 23 of the United States Housing Act of 
1937 (42 U.S.C. 1437u(b)) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by striking ``and'' at the 
            end;
                (ii) in subparagraph (B), by striking the period at the 
            end and inserting ``, subject to the limitations in 
            paragraph (4); and''; and
                (iii) by adding at the end the following new 
            subparagraph:
            ``(C) effective on the date of the enactment of the Quality 
        Housing and Work Responsibility Act of 1998, to the extent an 
        agency is not required to carry out a program pursuant to 
        subparagraph (B) of this paragraph and paragraph (4), may carry 
        out a local Family Self-Sufficiency program under this 
        section.'';
            (B) in paragraph (3), by striking ``Each'' and inserting 
        ``Subject to paragraph (4), each'';
            (C) by redesignating paragraph (4) as paragraph (5); and
            (D) by inserting after paragraph (3) the following new 
        paragraph:
        ``(4) Termination of requirement to expand program.--
            ``(A) In general.--Notwithstanding any other provision of 
        law, a public housing agency that receives incremental 
        assistance under subsection (b) or (o) of section 8 or that 
        makes available new public housing dwelling units shall not be 
        required, after the enactment of the Quality Housing and Work 
        Responsibility Act of 1998, to provide assistance under a local 
        Family Self-Sufficiency program under this section to any 
        families not required to be assisted under subparagraph (B) of 
        this paragraph.
            ``(B) Continuation of existing obligations.--
                ``(i) In general.--Each public housing agency that, 
            before the enactment of the Quality Housing and Work 
            Responsibility Act of 1998, was required under this section 
            to carry out a local Family Self-Sufficiency program shall 
            continue to operate such local program for the number of 
            families determined under paragraph (3), subject only to 
            the availability under appropriations Acts of sufficient 
            amounts for housing assistance.
                ``(ii) Reduction.--The number of families for which an 
            agency is required under clause (i) to operate such local 
            program shall be decreased by one for each family that, 
            after enactment of the Quality Housing and Work 
            Responsibility Act of 1998, fulfills its obligations under 
            the contract of participation.'';
        (2) in subsection (d), by striking the second paragraph that is 
    designated as paragraph (3) (relating to use of escrow savings 
    accounts for section 8 homeownership; as added by section 185(b) of 
    the Housing and Community Development Act of 1992 (Public Law 102-
    550; 106 Stat. 3747)); and
        (3) in subsection (f)(1), by inserting ``carrying out a local 
    program under this section'' after ``Each public housing agency''.
    (b) Applicability.--The amendments made by this subsection are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 510. PROHIBITION ON USE OF FUNDS.

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c)) is amended by adding at the end the following new subsection:
    ``(l) Prohibition on Use of Funds.--None of the funds made 
available to the Department of Housing and Urban Development to carry 
out this Act, which are obligated to State or local governments, public 
housing agencies, housing finance agencies, or other public or quasi-
public housing agencies, shall be used to indemnify contractors or 
subcontractors of the government or agency against costs associated 
with judgments of infringement of intellectual property rights.''.

SEC. 511. PUBLIC HOUSING AGENCY PLAN.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended by inserting after section 5 the 
following new section:

``SEC. 5A. PUBLIC HOUSING AGENCY PLANS.

    ``(a) 5-Year Plan.--
        ``(1) In general.--Subject to paragraph (2), not less than once 
    every 5 fiscal years, each public housing agency shall submit to 
    the Secretary a plan that includes, with respect to the 5 fiscal 
    years immediately following the date on which the plan is 
    submitted--
            ``(A) a statement of the mission of the public housing 
        agency for serving the needs of low-income and very low-income 
        families in the jurisdiction of the public housing agency 
        during such fiscal years; and
            ``(B) a statement of the goals and objectives of the public 
        housing agency that will enable the public housing agency to 
        serve the needs identified pursuant to subparagraph (A) during 
        those fiscal years.
        ``(2) Initial plan.--The initial 5-year plan submitted by a 
    public housing agency under this subsection shall be submitted for 
    the 5-year period beginning on October 1, 1999, or the first fiscal 
    year thereafter for which the public housing agency initially 
    receives assistance under this Act.
    ``(b) Annual Plan.--
        ``(1) In general.--Effective beginning upon October 1, 1999, 
    each public housing agency shall submit to the Secretary an annual 
    public housing agency plan under this subsection for each fiscal 
    year for which the public housing agency receives assistance under 
    section 8(o) or 9.
        ``(2) Updates.--For each fiscal year after the initial 
    submission of an annual plan under this subsection by a public 
    housing agency, the public housing agency may comply with 
    requirements for submission of a plan under this subsection by 
    submitting an update of the plan for the fiscal year.
    ``(c) Procedures.--
        ``(1) In general.--The Secretary shall establish requirements 
    and procedures for submission and review of plans, including 
    requirements for timing and form of submission, and for the 
    contents of such plans.
        ``(2) Contents.--The procedures established under paragraph (1) 
    shall provide that a public housing agency shall--
            ``(A) in developing the plan consult with the resident 
        advisory board established under subsection (e); and
            ``(B) ensure that the plan under this section is consistent 
        with the applicable comprehensive housing affordability 
        strategy (or any consolidated plan incorporating such strategy) 
        for the jurisdiction in which the public housing agency is 
        located, in accordance with title I of the Cranston-Gonzalez 
        National Affordable Housing Act, and contains a certification 
        by the appropriate State or local official that the plan meets 
        the requirements of this paragraph and a description of the 
        manner in which the applicable contents of the public housing 
        agency plan are consistent with the comprehensive housing 
        affordability strategy.
    ``(d) Contents.--An annual public housing agency plan under 
subsection (b) for a public housing agency shall contain the following 
information relating to the upcoming fiscal year for which the 
assistance under this Act is to be made available:
        ``(1) Needs.--A statement of the housing needs of low-income 
    and very low-income families residing in the jurisdiction served by 
    the public housing agency, and of other low-income and very low-
    income families on the waiting list of the agency (including 
    housing needs of elderly families and disabled families), and the 
    means by which the public housing agency intends, to the maximum 
    extent practicable, to address those needs.
        ``(2) Financial resources.--A statement of financial resources 
    available to the agency and the planned uses of those resources.
        ``(3) Eligibility, selection, and admissions policies.--A 
    statement of the policies governing eligibility, selection, 
    admissions (including any preferences), assignment, and occupancy 
    of families with respect to public housing dwelling units and 
    housing assistance under section 8(o), including--
            ``(A) the procedures for maintaining waiting lists for 
        admissions to public housing projects of the agency, which may 
        include a system of site-based waiting lists under section 
        6(r); and
            ``(B) the admissions policy under section 16(a)(3)(B) for 
        deconcentration of lower-income families.
        ``(4) Rent determination.--A statement of the policies of the 
    public housing agency governing rents charged for public housing 
    dwelling units and rental contributions of families assisted under 
    section 8(o).
        ``(5) Operation and management.--A statement of the rules, 
    standards, and policies of the public housing agency governing 
    maintenance and management of housing owned, assisted, or operated 
    by the public housing agency (which shall include measures 
    necessary for the prevention or eradication of pest infestation, 
    including by cockroaches), and management of the public housing 
    agency and programs of the public housing agency.
        ``(6) Grievance procedure.--A statement of the grievance 
    procedures of the public housing agency.
        ``(7) Capital improvements.--With respect to public housing 
    projects owned, assisted, or operated by the public housing agency, 
    a plan describing the capital improvements necessary to ensure 
    long-term physical and social viability of the projects.
        ``(8) Demolition and disposition.--With respect to public 
    housing projects owned by the public housing agency--
            ``(A) a description of any housing for which the PHA will 
        apply for demolition or disposition under section 18; and
            ``(B) a timetable for the demolition or disposition.
        ``(9) Designation of housing for elderly and disabled 
    families.--With respect to public housing projects owned, assisted, 
    or operated by the public housing agency, a description of any 
    projects (or portions thereof) that the public housing agency has 
    designated or will apply for designation for occupancy by elderly 
    and disabled families in accordance with section 7.
        ``(10) Conversion of public housing.--With respect to public 
    housing owned by a public housing agency--
            ``(A) a description of any building or buildings that the 
        public housing agency is required to convert to tenant-based 
        assistance under section 33 or that the public housing agency 
        plans to voluntarily convert under section 22;
            ``(B) an analysis of the projects or buildings required to 
        be converted under section 33; and
            ``(C) a statement of the amount of assistance received 
        under this Act to be used for rental assistance or other 
        housing assistance in connection with such conversion.
        ``(11) Homeownership.--A description of any homeownership 
    programs of the agency under section 8(y) or for which the public 
    housing agency has applied or will apply for approval under section 
    32.
        ``(12) Community service and self-sufficiency.--A description 
    of--
            ``(A) any programs relating to services and amenities 
        provided or offered to assisted families;
            ``(B) any policies or programs of the public housing agency 
        for the enhancement of the economic and social self-sufficiency 
        of assisted families;
            ``(C) how the public housing agency will comply with the 
        requirements of subsections (c) and (d) of section 12 (relating 
        to community service and treatment of income changes resulting 
        from welfare program requirements).
        ``(13) Safety and crime prevention.--A plan established by the 
    public housing agency, which shall be subject to the following 
    requirements:
            ``(A) Safety measures.--The plan shall provide, on a 
        project-by-project or jurisdiction-wide basis, for measures to 
        ensure the safety of public housing residents.
            ``(B) Establishment.--The plan shall be established in 
        consultation with the police officer or officers in command for 
        the appropriate precinct or police department.
            ``(C) Content.--The plan shall describe the need for 
        measures to ensure the safety of public housing residents and 
        for crime prevention measures, describe any such activities 
        conducted or to be conducted by the agency, and provide for 
        coordination between the agency and the appropriate police 
        precincts for carrying out such measures and activities.
            ``(D) Secretarial action.--If the Secretary determines, at 
        any time, that the security needs of a project are not being 
        adequately addressed by the plan, or that the local police 
        precinct is not complying with the plan, the Secretary may 
        mediate between the public housing agency and the local 
        precinct to resolve any issues of conflict.
        ``(14) Pets.--The requirements of the agency, pursuant to 
    section 31, relating to pet ownership in public housing.
        ``(15) Civil rights certification.--A certification by the 
    public housing agency that the public housing agency will carry out 
    the public housing agency plan in conformity with title VI of the 
    Civil Rights Act of 1964, the Fair Housing Act, section 504 of the 
    Rehabilitation Act of 1973, and title II of the Americans with 
    Disabilities Act of 1990, and will affirmatively further fair 
    housing.
        ``(16) Annual audit.--The results of the most recent fiscal 
    year audit of the public housing agency under section 5(h)(2).
        ``(17) Asset management.--A statement of how the agency will 
    carry out its asset management functions with respect to the public 
    housing inventory of the agency, including how the agency will plan 
    for the long-term operating, capital investment, rehabilitation, 
    modernization, disposition, and other needs for such inventory.
        ``(18) Other.--Any other information required by law to be 
    included in a public housing agency plan.
    ``(e) Resident Advisory Board.--
        ``(1) In general.--Except as provided in paragraph (3), each 
    public housing agency shall establish 1 or more resident advisory 
    boards in accordance with this subsection, the membership of which 
    shall adequately reflect and represent the residents assisted by 
    the public housing agency.
        ``(2) Functions.--Each resident advisory board established 
    under this subsection by a public housing agency shall assist and 
    make recommendations regarding the development of the public 
    housing agency plan for the agency. The agency shall consider the 
    recommendations of the resident advisory boards in preparing the 
    final public housing agency plan, and shall include, in the public 
    housing agency plan submitted to the Secretary under this section, 
    a copy of the recommendations and a description of the manner in 
    which the recommendations were addressed.
        ``(3) Waiver.--The Secretary may waive the requirements of this 
    subsection with respect to the establishment of resident advisory 
    boards for a public housing agency if the agency demonstrates to 
    the satisfaction of the Secretary that there exist resident 
    councils or other resident organizations of the public housing 
    agency that--
            ``(A) adequately represent the interests of the residents 
        of the public housing agency; and
            ``(B) have the ability to perform the functions described 
        in paragraph (2).
        ``(1) In general.--In developing a public housing agency plan 
    under this section, the board of directors or similar governing 
    body of a public housing agency shall conduct a public hearing to 
    discuss the public housing agency plan and to invite public comment 
    regarding that plan. The hearing shall be conducted at a location 
    that is convenient to residents.
        ``(2) Availability of information and notice.--Not later than 
    45 days before the date of a hearing conducted under paragraph (1), 
    the public housing agency shall--
            ``(A) make the proposed public housing agency plan and all 
        information relevant to the hearing and proposed plan available 
        for inspection by the public at the principal office of the 
        public housing agency during normal business hours; and
            ``(B) publish a notice informing the public that--
                ``(i) that the information is available as required 
            under subparagraph (A); and
                ``(ii) that a public hearing under paragraph (1) will 
            be conducted.
        ``(3) Adoption of plan.--A public housing agency may adopt a 
    public housing agency plan and submit the plan to the Secretary in 
    accordance with this section only after--
            ``(A) conducting a public hearing under paragraph (1);
            ``(B) considering all public comments received; and
            ``(C) making any appropriate changes in the public housing 
        agency plan, in consultation with the resident advisory board.
        ``(4) Advisory board consultation enforcement.--Pursuant to a 
    written request made by the resident advisory board for a public 
    housing agency that documents a failure on the part of the agency 
    to provide adequate notice and opportunity for comment under this 
    subsection and a finding by the Secretary of good cause within the 
    time period provided for in subsection (i)(4), the Secretary may 
    require the public housing agency to adequately remedy such failure 
    before final approval of the public housing agency plan under this 
    section.
    ``(g) Amendments and Modifications to Plans.--
        ``(1) In general.--Except as provided in paragraph (2), nothing 
    in this section shall preclude a public housing agency, after 
    submitting a plan to the Secretary in accordance with this section, 
    from amending or modifying any policy, rule, regulation, or plan of 
    the public housing agency, except that a significant amendment or 
    modification may not--
            ``(A) be adopted, other than at a duly called meeting of 
        board of directors (or similar governing body) of the public 
        housing agency that is open to the public; and
            ``(B) be implemented, until notification of the amendment 
        or modification is provided to the Secretary and approved in 
        accordance with subsection (i).
        ``(2) Consistency and notice.--Each significant amendment or 
    modification to a public housing agency plan submitted to the 
    Secretary under this section shall--
            ``(A) meet the requirements under subsection (c)(2) 
        (relating to consultation with resident advisory board and 
        consistency with comprehensive housing affordability 
        strategies); and
            ``(B) be subject to the notice and public hearing 
        requirements of subsection (f).
    ``(h) Submission of Plans.--
        ``(1) Initial submission.--Each public housing agency shall 
    submit the initial plan required by this section, and any amendment 
    or modification to the initial plan, to the Secretary at such time 
    and in such form as the Secretary shall require.
        ``(2) Annual submission.--Not later than 75 days before the 
    start of the fiscal year of the public housing agency, after 
    submission of the initial plan required by this section in 
    accordance with subparagraph (A), each public housing agency shall 
    annually submit to the Secretary a plan update, including any 
    amendments or modifications to the public housing agency plan.
    ``(i) Review and Determination of Compliance.--
        ``(1) Review.--Subject to paragraph (2), after submission of 
    the public housing agency plan or any amendment or modification to 
    the plan to the Secretary, to the extent that the Secretary 
    considers such action to be necessary to make determinations under 
    this paragraph, the Secretary shall review the public housing 
    agency plan (including any amendments or modifications thereto) and 
    determine whether the contents of the plan--
            ``(A) set forth the information required by this section 
        and this Act to be contained in a public housing agency plan;
            ``(B) are consistent with information and data available to 
        the Secretary, including the approved comprehensive housing 
        affordability strategy under title I of the Cranston-Gonzalez 
        National Affordable Housing Act for the jurisdiction in which 
        the public housing agency is located; and
            ``(C) are not prohibited by or inconsistent with any 
        provision of this title or other applicable law.
        ``(2) Elements exempted from review.--The Secretary may, by 
    regulation, provide that one or more elements of a public housing 
    agency plan shall be reviewed only if the element is challenged, 
    except that the Secretary shall review the information submitted in 
    each plan pursuant to paragraphs (3)(B), (8), and (15) of 
    subsection (d).
        ``(3) Disapproval.--The Secretary may disapprove a public 
    housing agency plan (or any amendment or modification thereto) only 
    if Secretary determines that the contents of the plan (or amendment 
    or modification) do not comply with the requirements under 
    subparagraph (A) through (C) of paragraph (1).
        ``(4) Determination of compliance.--
            ``(A) In general.--Except as provided in subsection (j)(2), 
        not later than 75 days after the date on which a public housing 
        agency plan is submitted in accordance with this section, the 
        Secretary shall make the determination under paragraph (1) and 
        provide written notice to the public housing agency if the plan 
        has been disapproved. If the Secretary disapproves the plan, 
        the notice shall state with specificity the reasons for the 
        disapproval.
            ``(B) Failure to provide notice of disapproval.--In the 
        case of a plan disapproved, if the Secretary does not provide 
        notice of disapproval under subparagraph (A) before the 
        expiration of the period described in subparagraph (A), the 
        Secretary shall be considered, for purposes of this Act, to 
        have made a determination that the plan complies with the 
        requirements under this section and the agency shall be 
        considered to have been notified of compliance upon the 
        expiration of such period. The preceding sentence shall not 
        preclude judicial review regarding such compliance pursuant to 
        chapter 7 of title 5, United States Code, or an action 
        regarding such compliance under section 1979 of the Revised 
        Statutes of the United States (42 U.S.C. 1983).
        ``(5) Public availability.--A public housing agency shall make 
    the approved plan of the agency available to the general public.
    ``(j) Troubled and At-Risk PHAs.--
        ``(1) In general.--The Secretary may require, for each public 
    housing agency that is at risk of being designated as troubled 
    under section 6(j)(2) or is designated as troubled under section 
    6(j)(2), that the public housing agency plan for such agency 
    include such additional information as the Secretary determines to 
    be appropriate, in accordance with such standards as the Secretary 
    may establish or in accordance with such determinations as the 
    Secretary may make on an agency-by-agency basis.
        ``(2) Troubled agencies.--The Secretary shall provide explicit 
    written approval or disapproval, in a timely manner, for a public 
    housing agency plan submitted by any public housing agency 
    designated by the Secretary as a troubled public housing agency 
    under section 6(j)(2).
    ``(k) Streamlined plan.--In carrying out this section, the 
Secretary may establish a streamlined public housing agency plan for--
            ``(A) public housing agencies that are determined by the 
        Secretary to be high performing public housing agencies;
            ``(B) public housing agencies with less than 250 public 
        housing units that have not been designated as troubled under 
        section 6(j)(2); and
            ``(C) public housing agencies that only administer tenant-
        based assistance and that do not own or operate public housing.
    ``(l) Compliance With Plan.--
        ``(1) In general.--In providing assistance under this title, a 
    public housing agency shall comply with the rules, standards, and 
    policies established in the public housing agency plan of the 
    public housing agency approved under this section.
        ``(2) Investigation and enforcement.--In carrying out this 
    title, the Secretary shall--
            ``(A) provide an appropriate response to any complaint 
        concerning noncompliance by a public housing agency with the 
        applicable public housing agency plan; and
            ``(B) if the Secretary determines, based on a finding of 
        the Secretary or other information available to the Secretary, 
        that a public housing agency is not complying with the 
        applicable public housing agency plan, take such actions as the 
        Secretary determines to be appropriate to ensure such 
        compliance.''.
    (b) Implementation.--
        (1) Interim rule.--Not later than 120 days after the date of 
    the enactment of this Act, the Secretary shall issue an interim 
    rule to require the submission of an interim public housing agency 
    plan by each public housing agency, as required by section 5A of 
    the United States Housing Act of 1937 (as added by subsection (a) 
    of this section). The interim rule shall provide for a public 
    comment period of not less than 60 days.
        (2) Final regulations.--Not later than 1 year after the date of 
    the enactment of this Act, the Secretary shall issue final 
    regulations implementing section 5A of the United States Housing 
    Act of 1937 (as added by subsection (a) of this section).
        (3) Factors for consideration.--Before the publication of the 
    final regulations under paragraph (2), in addition to public 
    comments invited in connection with the publication of the interim 
    rule, the Secretary shall--
            (A) seek recommendations on the implementation of section 
        5A of the United States Housing Act of 1937 (as added by this 
        subsection (a) of this section) from organizations 
        representing--
                (i) State or local public housing agencies;
                (ii) residents, including resident management 
            corporations; and
                (iii) other appropriate parties; and
            (B) convene not less than 2 public forums at which the 
        persons or organizations making recommendations under 
        subparagraph (A) may express views concerning the proposed 
        disposition of the recommendations.
    The Secretary shall publish in the final rule a summary of the 
    recommendations made and public comments received and the 
    Department of Housing and Urban Development's response to such 
    recommendations and comments.
    (c) Audit and Review; Report.--
        (1) Audit and review.--Not later than 1 year after the 
    effective date of final regulations issued under subsection (b)(2), 
    in order to determine the degree of compliance, by public housing 
    agencies, with public housing agency plans approved under section 
    5A of the United States Housing Act of 1937 (as added by subsection 
    (a) of this section), the Comptroller General of the United States 
    shall conduct--
            (A) a review of a representative sample of the public 
        housing agency plans approved under such section 5A before such 
        date; and
            (B) an audit and review of the public housing agencies 
        submitting such plans.
        (2) Report.--Not later than 2 years after the date on which 
    public housing agency plans are initially required to be submitted 
    under section 5A of the United States Housing Act of 1937 (as added 
    by subsection (a) of this section) the Comptroller General of the 
    United States shall submit to the Congress a report, which shall 
    include--
            (A) a description of the results of each audit and review 
        under paragraph (1); and
            (B) any recommendations for increasing compliance by public 
        housing agencies with their public housing agency plans 
        approved under section 5A of the United States Housing Act of 
        1937 (as added by subsection (a) of this section).
    (d) Contract Provisions.--Section 6(a) of the United States Housing 
Act of 1937 (42 U.S.C. 1437d(a)) is amended--
        (1) in the first sentence, by inserting ``, in a manner 
    consistent with the public housing agency plan'' before the period; 
    and
        (2) by striking the second sentence.
    (e) Applicability.--This section shall take effect, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 512. COMMUNITY SERVICE AND FAMILY SELF-SUFFICIENCY REQUIREMENTS.

    (a) In General.--Section 12 of the United States Housing Act of 
1937 (42 U.S.C. 1437j) is amended--
        (1) in the section heading, by inserting ``and community 
    service requirement'' after ``labor standards''; and
        (2) by adding at the end the following new subsections:
    ``(c) Community Service Requirement.--
        ``(1) In General.--Except as provided in paragraph (2) and 
    notwithstanding any other provision of law, each adult resident of 
    a public housing project shall--
            ``(A) contribute 8 hours per month of community service 
        (not including political activities) within the community in 
        which that adult resides; or
            ``(B) participate in an economic self-sufficiency program 
        (as that term is defined in subsection (g)) for 8 hours per 
        month.
        ``(2) Exemptions.--The Secretary shall provide an exemption 
    from the applicability of paragraph (1) for any individual who--
            ``(A) is 62 years of age or older;
            ``(B) is a blind or disabled individual, as defined under 
        section 216(i)(1) or 1614 of the Social Security Act (42 U.S.C. 
        416(i)(1); 1382c), and who is unable to comply with this 
        section, or is a primary caretaker of such individual;
            ``(C) is engaged in a work activity (as such term is 
        defined in section 407(d) of the Social Security Act (42 U.S.C. 
        607(d)), as in effect on and after July 1, 1997));
            ``(D) meets the requirements for being exempted from having 
        to engage in a work activity under the State program funded 
        under part A of title IV of the Social Security Act (42 U.S.C. 
        601 et seq.) or under any other welfare program of the State in 
        which the public housing agency is located, including a State-
        administered welfare-to-work program; or
            ``(E) is in a family receiving assistance under a State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) or under any other welfare program 
        of the State in which the public housing agency is located, 
        including a State-administered welfare-to-work program, and has 
        not been found by the State or other administering entity to be 
        in noncompliance with such program.
        ``(3) Annual determinations.--
            ``(A) Requirement.--For each public housing resident 
        subject to the requirement under paragraph (1), the public 
        housing agency shall, 30 days before the expiration of each 
        lease term of the resident under section 6(l)(1), review and 
        determine the compliance of the resident with the requirement 
        under paragraph (1) of this subsection.
            ``(B) Due process.--Such determinations shall be made in 
        accordance with the principles of due process and on a 
        nondiscriminatory basis.
            ``(C) Noncompliance.-- If an agency determines that a 
        resident subject to the requirement under paragraph (1) has not 
        complied with the requirement, the agency--
                ``(i) shall notify the resident--

                    ``(I) of such noncompliance;
                    ``(II) that the determination of noncompliance is 
                subject to the administrative grievance procedure under 
                subsection (k); and
                    ``(III) that, unless the resident enters into an 
                agreement under clause (ii) of this subparagraph, the 
                resident's lease will not be renewed; and

                ``(ii) may not renew or extend the resident's lease 
            upon expiration of the lease term and shall take such 
            action as is necessary to terminate the tenancy of the 
            household, unless the agency enters into an agreement, 
            before the expiration of the lease term, with the resident 
            providing for the resident to cure any noncompliance with 
            the requirement under paragraph (1), by participating in an 
            economic self-sufficiency program for or contributing to 
            community service as many additional hours as the resident 
            needs to comply in the aggregate with such requirement over 
            the 12-month term of the lease.
        ``(4) Ineligibility for occupancy for noncompliance.--A public 
    housing agency may not renew or extend any lease, or provide any 
    new lease, for a dwelling unit in public housing for any household 
    that includes an adult member who was subject to the requirement 
    under paragraph (1) and failed to comply with the requirement.
        ``(5) Inclusion in plan.--Each public housing agency shall 
    include in its public housing agency plan a detailed description of 
    the manner in which the agency intends to implement and administer 
    this subsection.
        ``(6) Geographic location.--The requirement under paragraph (1) 
    may include community service or participation in an economic self-
    sufficiency program performed at a location not owned by the public 
    housing agency.
        ``(7) Prohibition against replacement of employees.--In 
    carrying out this subsection, a public housing agency may not--
            ``(A) substitute community service or participation in an 
        economic self-sufficiency program, as described in paragraph 
        (1), for work performed by a public housing employee; or
            ``(B) supplant a job at any location at which community 
        work requirements are fulfilled.
        ``(8) Third-party coordinating.--A public housing agency may 
    administer the community service requirement under this subsection 
    directly, through a resident organization, or through a contractor 
    having experience in administering volunteer-based community 
    service programs within the service area of the public housing 
    agency. The Secretary may establish qualifications for such 
    organizations and contractors.
    ``(d) Treatment of Income Changes Resulting From Welfare Program 
Requirements.--
        ``(1) Covered family.--For purposes of this subsection, the 
    term `covered family' means a family that (A) receives benefits for 
    welfare or public assistance from a State or other public agency 
    under a program for which the Federal, State, or local law relating 
    to the program requires, as a condition of eligibility for 
    assistance under the program, participation of a member of the 
    family in an economic self-sufficiency program, and (B) resides in 
    a public housing dwelling unit or is provided tenant-based 
    assistance under section 8.
        ``(2) Decreases in income for failure to comply.--
            ``(A) In general.--Notwithstanding the provisions of 
        section 3(a) (relating to family rental contributions) or 
        paragraph (4) or (5) of section 3(b) (relating to definition of 
        income and adjusted income), if the welfare or public 
        assistance benefits of a covered family are reduced under a 
        Federal, State, or local law regarding such an assistance 
        program because of any failure of any member of the family to 
        comply with the conditions under the assistance program 
        requiring participation in an economic self-sufficiency program 
        or imposing a work activities requirement, the amount required 
        to be paid by the family as a monthly contribution toward rent 
        may not be decreased, during the period of the reduction, as a 
        result of any decrease in the income of the family (to the 
        extent that the decrease in income is a result of the benefits 
        reduction).
            ``(B) No reduction based on time limit for assistance.--For 
        purposes of this paragraph, a reduction in benefits as a result 
        of the expiration of a lifetime time limit for a family 
        receiving welfare or public assistance benefits shall not be 
        considered to be a failure to comply with the conditions under 
        the assistance program requiring participation in an economic 
        self-sufficiency program or imposing a work activities 
        requirement. This paragraph shall apply beginning upon the date 
        of the enactment of the Quality Housing and Work Responsibility 
        Act of 1998.
        ``(3) Effect of fraud.--Notwithstanding the provisions of 
    section 3(a) (relating to family rental contributions) or paragraph 
    (4) or (5) of section 3(b) (relating to definition of income and 
    adjusted income), if the welfare or public assistance benefits of a 
    covered family are reduced because of an act of fraud by a member 
    of the family under the law or program, the amount required to be 
    paid by the covered family as a monthly contribution toward rent 
    may not be decreased, during the period of the reduction, as a 
    result of any decrease in the income of the family (to the extent 
    that the decrease in income is a result of the benefits reduction). 
    This paragraph shall apply beginning upon the date of the enactment 
    of the Quality Housing and Work Responsibility Act of 1998.
        ``(4) Notice.--Paragraphs (2) and (3) shall not apply to any 
    covered family before the public housing agency providing 
    assistance under this Act on behalf of the family obtains written 
    notification from the relevant welfare or public assistance agency 
    specifying that the family's benefits have been reduced because of 
    noncompliance with economic self-sufficiency program or work 
    activities requirements or fraud, and the level of such reduction.
        ``(5) Occupancy rights.--This subsection may not be construed 
    to authorize any public housing agency to establish any time limit 
    on tenancy in a public housing dwelling unit or on receipt of 
    tenant-based assistance under section 8.
        ``(6) Review.--Any covered family residing in public housing 
    that is affected by the operation of this subsection shall have the 
    right to review the determination under this subsection through the 
    administrative grievance procedure established pursuant to section 
    6(k) for the public housing agency.
        ``(7) Cooperation agreements for economic self-sufficiency 
    activities.--
            ``(A) Requirement.--A public housing agency providing 
        public housing dwelling units or tenant-based assistance under 
        section 8 for covered families shall make its best efforts to 
        enter into such cooperation agreements, with State, local, and 
        other agencies providing assistance to covered families under 
        welfare or public assistance programs, as may be necessary, to 
        provide for such agencies to transfer information to facilitate 
        administration of subsection (c) and paragraphs (2), (3), and 
        (4) of this subsection and other information regarding rents, 
        income, and assistance that may assist a public housing agency 
        or welfare or public assistance agency in carrying out its 
        functions.
            ``(B) Contents.--A public housing agency shall seek to 
        include in a cooperation agreement under this paragraph 
        requirements and provisions designed to target assistance under 
        welfare and public assistance programs to families residing in 
        public housing projects and families receiving tenant-based 
        assistance under section 8, which may include providing for 
        economic self-sufficiency services within such housing, 
        providing for services designed to meet the unique employment-
        related needs of residents of such housing and recipients of 
        such assistance, providing for placement of workfare positions 
        on-site in such housing, and such other elements as may be 
        appropriate.
            ``(C) Confidentiality.--This paragraph may not be construed 
        to authorize any release of information prohibited by, or in 
        contravention of, any other provision of Federal, State, or 
        local law.
    ``(e) Lease Provisions.--A public housing agency shall incorporate 
into leases under section 6(l) and into agreements for the provision of 
tenant-based assistance under section 8, provisions incorporating the 
conditions under subsection (d).
    ``(f) Treatment of Income.--Notwithstanding any other provision of 
this section, in determining the income of a family who resides in 
public housing or receives tenant-based assistance under section 8, a 
public housing agency shall consider any decrease in the income of a 
family that results from the reduction of any welfare or public 
assistance benefits received by the family under any Federal, State, or 
local law regarding a program for such assistance if the family (or a 
member thereof, as applicable) has complied with the conditions for 
receiving such assistance and is unable to obtain employment 
notwithstanding such compliance.
    ``(g) Definition.--For purposes of this section, the term `economic 
self-sufficiency program' means any program designed to encourage, 
assist, train, or facilitate the economic independence of participants 
and their families or to provide work for participants, including 
programs for job training, employment counseling, work placement, basic 
skills training, education, workfare, financial or household 
management, apprenticeship, or other activities as the Secretary may 
provide.''.
    (b) 1-Year Leases.--Section 6(l) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(l)) is amended--
        (1) by redesignating paragraphs (1) through (6) as paragraphs 
    (2) through (7), respectively;
        (2) by redesignating paragraph (7) as paragraph (9); and
        (3) by inserting before paragraph (2) the following new 
    paragraph:
        ``(1) have a term of 12 months and shall be automatically 
    renewed for all purposes except for noncompliance with the 
    requirements under section 12(c) (relating to community service 
    requirements); except that nothing in this title shall prevent a 
    resident from seeking timely redress in court for failure to renew 
    based on such noncompliance;''.

SEC. 513. INCOME TARGETING.

    (a) In General.--Section 16 of the United States Housing Act of 
1937 (42 U.S.C. 1437n) is amended by striking the section designation 
and all that follows through the end of subsection (d) and inserting 
the following:
    ``Sec. 16. (a) Income Eligibility for Public Housing.--
        ``(1) Income mix within projects.--A public housing agency may 
    establish and utilize income-mix criteria for the selection of 
    residents for dwelling units in public housing projects, subject to 
    the requirements of this section.
        ``(2) PHA income mix.--
            ``(A) Targeting.--Except as provided in paragraph (4), of 
        the public housing dwelling units of a public housing agency 
        made available for occupancy in any fiscal year by eligible 
        families, not less than 40 percent shall be occupied by 
        families whose incomes at the time of commencement of occupancy 
        do not exceed 30 percent of the area median income, as 
        determined by the Secretary with adjustments for smaller and 
        larger families.
        ``(3) Prohibition of concentration of low-income families.--
            ``(A) Prohibition.--A public housing agency may not, in 
        complying with the requirements under paragraph (2), 
        concentrate very low-income families (or other families with 
        relatively low incomes) in public housing dwelling units in 
        certain public housing projects or certain buildings within 
        projects. The Secretary shall review the income and occupancy 
        characteristics of the public housing projects and the 
        buildings of such projects of such agencies to ensure 
        compliance with the provisions of this paragraph and paragraph 
        (2).
            ``(B) Deconcentration.--
                ``(i) In general.--A public housing agency shall submit 
            with its annual public housing agency plan under section 5A 
            an admissions policy designed to provide for 
            deconcentration of poverty and income-mixing by bringing 
            higher income tenants into lower income projects and lower 
            income tenants into higher income projects. This clause may 
            not be construed to impose or require any specific income 
            or racial quotas for any project or projects.
                ``(ii) Incentives.--In implementing the policy under 
            clause (i), a public housing agency may offer incentives 
            for eligible families having higher incomes to occupy 
            dwelling unit in projects predominantly occupied by 
            eligible families having lower incomes, and provide for 
            occupancy of eligible families having lower incomes in 
            projects predominantly occupied by eligible families having 
            higher incomes.
                ``(iii) Family choice.--Incentives referred to in 
            clause (ii) may be made available by a public housing 
            agency only in a manner that allows for the eligible family 
            to have the sole discretion in determining whether to 
            accept the incentive and an agency may not take any adverse 
            action toward any eligible family for choosing not to 
            accept an incentive and occupancy of a project described in 
            clause (i)(II), Provided, That the skipping of a family on 
            a waiting list to reach another family to implement the 
            policy under clause (i) shall not be considered an adverse 
            action. An agency implementing an admissions policy under 
            this subparagraph shall implement the policy in a manner 
            that does not prevent or interfere with the use of site-
            based waiting lists authorized under section 6(s).
        ``(4) Fungibility with tenant-based assistance.--
            ``(A) Authority.--Except as provided under subparagraph 
        (D), the number of public housing dwelling units that a public 
        housing agency shall otherwise make available in accordance 
        with paragraph (2)(A) to comply with the percentage requirement 
        under such paragraph for a fiscal year shall be reduced by the 
        credit number for the agency under subparagraph (B).
            ``(B) Credit for exceeding tenant-based assistance 
        targeting requirement.--Subject to subparagraph (C), the credit 
        number under this subparagraph for a public housing agency for 
        a fiscal year shall be the number by which--
                ``(i) the aggregate number of qualified families who, 
            in such fiscal year, are initially provided tenant-based 
            assistance under section 8 by the agency; exceeds
                ``(ii) the number of qualified families that is 
            required for the agency to comply with the percentage 
            requirement under subsection (b)(1) for such fiscal year.
            ``(C) Limitations on credit number.--The credit number 
        under subparagraph (B) for a public housing agency for a fiscal 
        year may not in any case exceed the lesser of--
                ``(i) the number of dwelling units that is equivalent 
            to 10 percent of the aggregate number of families initially 
            provided tenant-based assistance under section 8 by the 
            agency in such fiscal year; or
                ``(ii) the number of public housing dwelling units of 
            the agency that--

                    ``(I) are in projects that are located in census 
                tracts having a poverty rate of 30 percent or more; and
                    ``(II) are made available for occupancy during such 
                fiscal year and are actually filled only by families 
                whose incomes at the time of commencement of such 
                occupancy exceed 30 percent of the area median income, 
                as determined by the Secretary with adjustments for 
                smaller and larger families.

            ``(D) Fungibility floor.--Notwithstanding any authority 
        under subparagraph (A), of the public housing dwelling units of 
        a public housing agency made available for occupancy in any 
        fiscal year by eligible families, not less than 30 percent 
        shall be occupied by families whose incomes at the time of 
        commencement of occupancy do not exceed 30 percent of the area 
        median income, as determined by the Secretary with adjustments 
        for smaller and larger families.
            ``(E) Qualified family.--For purposes of this paragraph, 
        the term `qualified family' means a family having an income 
        described in subsection (b)(1).
    ``(b) Income Eligibility for Tenant-Based Section 8 Assistance.--
        ``(1) In general.--Of the families initially provided tenant-
    based assistance under section 8 by a public housing agency in any 
    fiscal year, not less than 75 percent shall be families whose 
    incomes do not exceed 30 percent of the area median income, as 
    determined by the Secretary with adjustments for smaller and larger 
    families; except that the Secretary may establish income ceilings 
    higher or lower than 30 percent of the area median income on the 
    basis of the Secretary's findings that such variations are 
    necessary because of unusually high or low family incomes.
        ``(2) Jurisdictions served by multiple pha's.--In the case of 
    any 2 or more public housing agencies that administer tenant-based 
    assistance under section 8 with respect solely to identical 
    geographical areas, such agencies shall be treated as a single 
    public housing agency for purposes of paragraph (1).
    ``(c) Income Eligibility for Project-Based Section 8 Assistance.--
        ``(1) Pre-1981 act projects.--Not more than 25 percent of the 
    dwelling units that were available for occupancy under section 8 
    housing assistance payments contracts under this Act before the 
    effective date of the Housing and Community Development Amendments 
    of 1981, and which will be leased on or after such effective date 
    shall be available for leasing by low-income families other than 
    very low-income families.
        ``(2) Post-1981 act projects.--Not more than 15 percent of the 
    dwelling units which become available for occupancy under section 8 
    housing assistance payments contracts under this Act on or after 
    the effective date of the Housing and Community Development 
    Amendments of 1981 shall be available for leasing by low-income 
    families other than very low-income families.
        ``(3) Targeting.--For each project assisted under a contract 
    for project-based assistance, of the dwelling units that become 
    available for occupancy in any fiscal year that are assisted under 
    the contract, not less than 40 percent
        ``(4) Prohibition of skipping.--In developing admission 
    procedures implementing paragraphs (1), (2), and (3), the Secretary 
    shall prohibit project owners from selecting families for residence 
    in an order different from the order on the waiting list for the 
    purpose of selecting relatively higher income families for 
    residence. Nothing in this paragraph or this subsection may be 
    construed to prevent an owner of housing assisted under a contract 
    for project-based assistance from establishing a preference for 
    occupancy in such housing for families containing a member who is 
    employed.
        ``(5) Exception.--The limitations established in paragraphs 
    (1), (2), and (3) shall not apply to dwelling units made available 
    under project-based contracts under section 8 for the purpose of 
    preventing displacement, or ameliorating the effects of 
    displacement.
        ``(6) Definition.--For purposes of this subsection, the term 
    `project-based assistance' means assistance under any of the 
    following programs:
            ``(A) The new construction or substantial rehabilitation 
        program under section 8(b)(2) (as in effect before October 1, 
        1983).
            ``(B) The property disposition program under section 8(b) 
        (as in effect before the effective date under section 503(a) of 
        the Quality Housing and Work Responsibility Act of 1998).
            ``(C) The loan management set-aside program under 
        subsections (b) and (v) of section 8.
            ``(D) The project-based certificate program under section 
        8(d)(2).
            ``(E) The moderate rehabilitation program under section 
        8(e)(2) (as in effect before October 1, 1991).
            ``(F) The low-income housing preservation program under 
        Low-Income Housing Preservation and Resident Homeownership Act 
        of 1990 or the provisions of the Emergency Low Income Housing 
        Preservation Act of 1987 (as in effect before November 28, 
        1990).
            ``(G) Section 8 (as in effect before the effective date 
        under section 503(a) of the Quality Housing and Work 
        Responsibility Act of 1998), following conversion from 
        assistance under section 101 of the Housing and Urban 
        Development Act of 1965 or section 236(f)(2) of the National 
        Housing Act.
    ``(d) Establishment of Different Standards.--Notwithstanding 
subsection (a)(2) or (b)(1), if approved by the Secretary, a public 
housing agency may for good cause establish and implement, in 
accordance with the public housing agency plan, an admission standard 
other than the standard under such subsection.''.
    (b) Effective Date.--This section shall take effect on, and the 
amendments under this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 514. REPEAL OF FEDERAL PREFERENCES.

    (a) Public Housing.--
        (1) In general.--Subparagraph (A) of section 6(c)(4) of the 
    United States Housing Act of 1937 (42 U.S.C. 1437d)(c)(4)) is 
    amended to read as follows:
            ``(A) making dwelling units in public housing available for 
        occupancy, which shall provide that the public housing agency 
        may establish a system for making dwelling units available that 
        provides preference for such occupancy to families having 
        certain characteristics; each system of preferences established 
        pursuant to this subparagraph shall be based upon local housing 
        needs and priorities, as determined by the public housing 
        agency using generally accepted data sources, including any 
        information obtained pursuant to an opportunity for public 
        comment as provided under section 5A(f) and under the 
        requirements applicable to the comprehensive housing 
        affordability strategy for the relevant jurisdiction;''.
        (2) Conforming amendments.--
            (A) Public housing assistance for foster care children.--
        Section 6(o) of the United States Housing Act of 1937 (42 
        U.S.C. 1437d(o)) is amended by striking ``Subject'' and all 
        that follows through ``, in'' and inserting ``In''.
            (B) Youthbuild program.--Section 455(a)(2)(D)(iii) of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12899d(a)(2)(D)(iii) is amended striking ``section 6(c)(4)(A)'' 
        and inserting ``any system of preferences established under 
        section 6(c)(1)''.
    (b) Section 8 Existing and Moderate Rehabilitation.--
        (1) In general.--Subparagraph (A) of section 8(d)(1) of the 
    United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) is 
    amended to read as follows:
        ``(A) the selection of tenants shall be the function of the 
    owner, subject to the annual contributions contract between the 
    Secretary and the agency, except that with respect to the 
    certificate and moderate rehabilitation programs only, for the 
    purpose of selecting families to be assisted, the public housing 
    agency may establish local preferences, consistent with the public 
    housing agency plan submitted under section 5A by the public 
    housing agency;''.
        (2) Conforming amendments.--
            (A) Low-income housing preservation and resident 
        homeownership act of 1990.--The second sentence of section 
        226(b)(6)(B) of the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) is 
        amended by striking ``The requirement for giving preferences to 
        certain categories of eligible families under sections 
        8(d)(1)(A) and 8(o)(3)'' and inserting ``Any system for 
        preferences established under section 8(d)(1)(A) or 
        8(o)(6)(A)''.
            (B) Housing and community development act of 1992.--Section 
        655 of the Housing and Community Development Act of 1992 (42 
        U.S.C. 13615) is amended by striking ``shall be given'' and all 
        that follows through the period at the end and inserting the 
        following: ``shall be given to disabled families according to 
        any preferences established under any system established under 
        section 8(d)(1)(A) by the public housing agency.''.
            (C) Management and disposition of multifamily housing 
        projects.--Section 203(g)(2) of the Housing and Community 
        Development Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)) is 
        amended by striking ``the preferences for assistance under 
        sections 6(c)(4)(A)(i), 8(d)(1)(A)(i), and 8(o)(3)(B)'' and 
        inserting ``any system of preferences established pursuant to 
        section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A)''.
            (D) Other references.--Subparagraph (D) of section 
        402(d)(6) of The Balanced Budget Downpayment Act, I (42 U.S.C. 
        1437d note) is hereby repealed.
    (c) Section 8 New Construction and Substantial Rehabilitation.--
        (1) Permanent repeal.--Subsection (c) of section 545 of the 
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f 
    note) is hereby repealed.
        (2) Prohibition.--Notwithstanding any other provision of law 
    (including subsection (f) of this section), section 402(d)(4)(B) of 
    The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) shall 
    apply to fiscal year 1999 and thereafter.
    (d) Rent Supplements.--Subsection (k) of section 1010 of the 
Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is 
hereby repealed.
    (e) Sense of Congress Regarding Preference for Assistance for 
Victims of Domestic Violence.--It is the sense of Congress that, each 
public housing agency involved in the selection of eligible families 
for assistance under the United States Housing Act of 1937 (including 
residency in public housing and tenant-based assistance under section 8 
of such Act) should, consistent with the public housing agency plan of 
the agency, consider preferences for individuals who are victims of 
domestic violence.
    (f) Termination of Temporary Provisions.--Section 402 of The 
Balanced Budget Downpayment Act, I, and the amendments made by such 
section shall cease to be effective on the date of the enactment of 
this Act. Notwithstanding the inclusion in this Act of any provision 
extending the effectiveness of such section or such amendments, such 
provision included in this Act shall not take effect.
    (g) Applicability.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING AGENCIES; 
              REPEAL OF ENERGY CONSERVATION PROVISIONS.

    Section 13 of the United States Housing Act of 1937 (42 U.S.C. 
1437k) is amended to read as follows:

``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF 
              PUBLIC HOUSING AGENCIES.

    ``(a) Consortia.--
        ``(1) In general.--Any 2 or more public housing agencies may 
    participate in a consortium for the purpose of administering any or 
    all of the housing programs of those public housing agencies in 
    accordance with this section.
        ``(2) Effect.--With respect to any consortium described in 
    paragraph (1)--
            ``(A) any assistance made available under this title to 
        each of the public housing agencies participating in the 
        consortium shall be paid to the consortium; and
            ``(B) all planning and reporting requirements imposed upon 
        each public housing agency participating in the consortium with 
        respect to the programs operated by the consortium shall be 
        consolidated.
        ``(3) Restrictions.--
            ``(A) Agreement.--Each consortium described in paragraph 
        (1) shall be formed and operated in accordance with a 
        consortium agreement, and shall be subject to the requirements 
        of a joint public housing agency plan, which shall be submitted 
        by the consortium in accordance with section 5A.
            ``(B) Minimum requirements.--The Secretary shall specify 
        minimum requirements relating to the formation and operation of 
        consortia and the minimum contents of consortium agreements 
        under this paragraph.
    ``(b) Joint Ventures.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    a public housing agency, in accordance with the public housing 
    agency plan, may--
            ``(A) form and operate wholly owned or controlled 
        subsidiaries (which may be nonprofit corporations) and other 
        affiliates, any of which may be directed, managed, or 
        controlled by the same persons who constitute the board of 
        directors or similar governing body of the public housing 
        agency, or who serve as employees or staff of the public 
        housing agency; or
            ``(B) enter into joint ventures, partnerships, or other 
        business arrangements with, or contract with, any person, 
        organization, entity, or governmental unit--
                ``(i) with respect to the administration of the 
            programs of the public housing agency, including any 
            program that is subject to this title; or
                ``(ii) for the purpose of providing or arranging for 
            the provision of supportive or social services.
        ``(2) Use of and treatment income.--Any income generated under 
    paragraph (1)--
            ``(A) shall be used for low-income housing or to benefit 
        the residents assisted by the public housing agency; and
            ``(B) shall not result in any decrease in any amount 
        provided to the public housing agency under this title, except 
        as otherwise provided under the formulas established under 
        section 9(d)(2) and 9(e)(2).
        ``(3) Audits.--The Comptroller General of the United States, 
    the Secretary, or the Inspector General of the Department of 
    Housing and Urban Development may conduct an audit of any activity 
    undertaken under paragraph (1) at any time.''.

SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY INTERESTS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following:

``SEC. 30. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

    ``(a) General Authorization.--The Secretary may, upon such terms 
and conditions as the Secretary may prescribe, authorize a public 
housing agency to mortgage or otherwise grant a security interest in 
any public housing project or other property of the public housing 
agency.
    ``(b) Terms and Conditions.--In making any authorization under 
subsection (a), the Secretary may consider--
        ``(1) the ability of the public housing agency to use the 
    proceeds of the mortgage or security interest for low-income 
    housing uses;
        ``(2) the ability of the public housing agency to make payments 
    on the mortgage or security interest; and
        ``(3) such other criteria as the Secretary may specify.
    ``(c) No Federal Liability.--No action taken under this section 
shall result in any liability to the Federal Government.''.

SEC. 517. MENTAL HEALTH ACTION PLAN.

    The Secretary of Housing and Urban Development, in consultation 
with the Secretary of Health and Human Services, the Secretary of 
Labor, and appropriate State and local officials and representatives, 
shall--
        (1) develop an action plan and list of recommendations for the 
    improvement of means of providing severe mental illness treatment 
    to families and individuals receiving housing assistance under the 
    United States Housing Act of 1937, including public housing 
    residents, residents of multifamily housing assisted with project-
    based assistance under section 8 of such Act, and recipients of 
    tenant-based assistance under such section; and
        (2) develop and disseminate a list of current practices among 
    public housing agencies and owners of assisted housing that serve 
    to benefit persons in need of mental health care.''.

                       Subtitle B--Public Housing

                PART 1--CAPITAL AND OPERATING ASSISTANCE

SEC. 518. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

    (a) Repeals.--
        (1) In general.--Section 5 of the United States Housing Act of 
    1937 (42 U.S.C. 1437c) is amended--
            (A) by striking subsections (h) through (k); and
            (B) by redesignating subsection (l), as added by the 
        preceding provisions of this Act, as subsection (i).
        (2) Conforming amendments.--The United States Housing Act of 
    1937 is amended--
            (A) in section 21(d) (42 U.S.C. 1437s(d)), by striking 
        ``section 5(h) or''; and
            (C) in section 307 (42 U.S.C. 1437aaa-6), by striking 
        ``section 5(h) and''.
    (b) Local Notification.--Section 5(e)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437c(e)(2)) is amended by inserting 
before the period at the end the following: ``; the Secretary shall 
require that each such agreement shall provide that, notwithstanding 
any order, judgment, or decree of any court (including any settlement 
order), before making any amounts that are provided pursuant to any 
contract for contributions under this title available for use for the 
development of any housing or other property not previously used as 
public housing, the public housing agency shall (A) notify the chief 
executive officer (or other appropriate official) of the unit of 
general local government in which the public housing for which such 
amounts are to be so used is located (or to be located) of such use, 
and (B) pursuant to the request of such unit of general local 
government, provide such information as may reasonably be requested by 
such unit of general local government regarding the public housing to 
be so assisted (except to the extent otherwise prohibited by law)''.

SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

    (a) In General.--Section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g) is amended to read as follows:

``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

    ``(a) Merger Into Capital Fund.--Except as otherwise provided in 
the Quality Housing and Work Responsibility Act of 1998, any assistance 
made available for public housing under section 14 of this Act before 
October 1, 1999, shall be merged into the Capital Fund established 
under subsection (d).
    ``(b) Merger Into Operating Fund.--Except as otherwise provided in 
the Quality Housing and Work Responsibility Act of 1998, any assistance 
made available for public housing under section 9 of this Act before 
October 1, 1999, shall be merged into the Operating Fund established 
under subsection (e).
    ``(c) Allocation Amount.--
        ``(1) In General.--For fiscal year 2000 and each fiscal year 
    thereafter, the Secretary shall allocate amounts in the Capital 
    Fund and Operating Funds for assistance for public housing agencies 
    eligible for such assistance. The Secretary shall determine the 
    amount of the allocation for each eligible agency, which shall be, 
    for any fiscal year beginning after the effective date of the 
    formulas described in subsections (d)(2) and (e)(2)--
            ``(A) for assistance from the Capital Fund, the amount 
        determined for the agency under the formula under subsection 
        (d)(2); and
            ``(B) for assistance from the Operating Fund, the amount 
        determined for the agency under the formula under subsection 
        (e)(2).
        ``(2) Funding.--There are authorized to be appropriated for 
    assistance for public housing agencies under this section the 
    following amounts:
            ``(A) Capital fund.--For allocations of assistance from the 
        Capital Fund, $3,000,000,000 for fiscal year 1999, and such 
        sums as may be necessary for fiscal years 2000, 2001, 2002, and 
        2003.
            ``(B) Operating fund.--For allocations of assistance from 
        the Operating Fund, $2,900,000,000 for fiscal year 1999, and 
        such sums as may be necessary for each of fiscal years 2000, 
        2001, 2002, and 2003.
    ``(d) Capital Fund.--
        ``(1) In general.--The Secretary shall establish a Capital Fund 
    for the purpose of making assistance available to public housing 
    agencies to carry out capital and management activities, 
    including--
            ``(A) the development, financing, and modernization of 
        public housing projects, including the redesign, 
        reconstruction, and reconfiguration of public housing sites and 
        buildings (including accessibility improvements) and the 
        development of mixed-finance projects;
            ``(B) vacancy reduction;
            ``(C) addressing deferred maintenance needs and the 
        replacement of obsolete utility systems and dwelling equipment;
            ``(D) planned code compliance;
            ``(E) management improvements;
            ``(F) demolition and replacement;
            ``(G) resident relocation;
            ``(H) capital expenditures to facilitate programs to 
        improve the empowerment and economic self-sufficiency of public 
        housing residents and to improve resident participation;
            ``(I) capital expenditures to improve the security and 
        safety of residents; and
            ``(J) homeownership activities, including programs under 
        section 32.
        ``(2) Formula.--The Secretary shall develop a formula for 
    determining the amount of assistance provided to public housing 
    agencies from the Capital Fund for a fiscal year, which shall 
    include a mechanism to reward performance. The formula may take 
    into account such factors as--
            ``(A) the number of public housing dwelling units owned, 
        assisted, or operated by the public housing agency, the 
        characteristics and locations of the projects, and the 
        characteristics of the families served and to be served 
        (including the incomes of the families);
            ``(B) the need of the public housing agency to carry out 
        rehabilitation and modernization activities, replacement 
        housing, and reconstruction, construction, and demolition 
        activities related to public housing dwelling units owned, 
        assisted, or operated by the public housing agency, including 
        backlog and projected future needs of the agency;
            ``(C) the cost of constructing and rehabilitating property 
        in the area;
            ``(D) the need of the public housing agency to carry out 
        activities that provide a safe and secure environment in public 
        housing units owned, assisted, or operated by the public 
        housing agency;
            ``(E) any record by the public housing agency of exemplary 
        performance in the operation of public housing, as indicated by 
        the system of performance indicators established pursuant to 
        section 6(j); and
            ``(F) any other factors that the Secretary determines to be 
        appropriate.
        ``(3) Conditions on use for development and modernization.--
            ``(A) Development.--Except as otherwise provided in this 
        Act, any public housing developed using amounts provided under 
        this subsection, or under section 14 as in effect before the 
        effective date under section 503(a) of the Quality Housing and 
        Work Responsibility Act of 1998, shall be operated under the 
        terms and conditions applicable to public housing during the 
        40-year period that begins on the date on which the project (or 
        stage of the project) becomes available for occupancy.
            ``(B) Modernization.--Except as otherwise provided in this 
        Act, any public housing or portion thereof that is modernized 
        using amounts provided under this subsection or under section 
        14 (as in effect before the effective date under section 503(a) 
        of the Quality Housing and Work Responsibility Act of 1998) 
        shall be maintained and operated under the terms and conditions 
        applicable to public housing during the 20-year period that 
        begins on the latest date on which modernization is completed.
            ``(C) Applicability of latest expiration date.--Public 
        housing subject to this paragraph or to any other provision of 
        law mandating the operation of the housing as public housing or 
        under the terms and conditions applicable to public housing for 
        a specified length of time, shall be maintained and operated as 
        required until the latest such expiration date.
    ``(e) Operating Fund.--
        ``(1) In general.--The Secretary shall establish an Operating 
    Fund for the purpose of making assistance available to public 
    housing agencies for the operation and management of public 
    housing, including--
            ``(A) procedures and systems to maintain and ensure the 
        efficient management and operation of public housing units 
        (including amounts sufficient to pay for the reasonable costs 
        of review by an independent auditor of the documentation or 
        other information maintained pursuant to section 6(j)(6) by a 
        public housing agency or resident management corporation to 
        substantiate the performance of that agency or corporation);
            ``(B) activities to ensure a program of routine 
        preventative maintenance;
            ``(C) anticrime and antidrug activities, including the 
        costs of providing adequate security for public housing 
        residents, including above-baseline police service agreements;
            ``(D) activities related to the provision of services, 
        including service coordinators for elderly persons or persons 
        with disabilities;
            ``(E) activities to provide for management and 
        participation in the management and policy making of public 
        housing by public housing residents;
            ``(F) the costs of insurance;
            ``(G) the energy costs associated with public housing 
        units, with an emphasis on energy conservation;
            ``(H) the costs of administering a public housing work 
        program under section 12, including the costs of any related 
        insurance needs;
            ``(I) the costs of repaying, together with rent 
        contributions, debt incurred to finance the rehabilitation and 
        development of public housing units, which shall be subject to 
        such reasonable requirements as the Secretary may establish; 
        and
            ``(J) the costs associated with the operation and 
        management of mixed finance projects, to the extent 
        appropriate.
        ``(2) Formula.--
            ``(A) In general.--The Secretary shall establish a formula 
        for determining the amount of assistance provided to public 
        housing agencies from the Operating Fund for a fiscal year. The 
        formula may take into account--
                ``(i) standards for the costs of operating and 
            reasonable projections of income, taking into account the 
            characteristics and locations of the public housing 
            projects and characteristics of the families served and to 
            be served (including the incomes of the families), or the 
            costs of providing comparable services as determined in 
            accordance with criteria or a formula representing the 
            operations of a prototype well-managed public housing 
            project;
                ``(ii) the number of public housing dwelling units 
            owned, assisted, or operated by the public housing agency;
                ``(iii) the number of public housing dwelling units 
            owned, assisted, or operated by the public housing agency 
            that are chronically vacant and the amount of assistance 
            appropriate for those units;
                ``(iv) to the extent quantifiable, the extent to which 
            the public housing agency provides programs and activities 
            designed to promote the economic self-sufficiency and 
            management skills of public housing residents;
                ``(v) the need of the public housing agency to carry 
            out anti-crime and anti-drug activities, including 
            providing adequate security for public housing residents;
                ``(vi) the amount of public housing rental income 
            foregone by the public housing agency as a result of escrow 
            savings accounts under section 23(d)(2) for families 
            participating in a family self-sufficiency program of the 
            agency under such section 23; and
            ``(vii) any other factors that the Secretary determines to 
        be appropriate.
            ``(B) Incentive to increase certain rental income.--The 
        formula shall provide an incentive to encourage public housing 
        agencies to facilitate increases in earned income by families 
        in occupancy. Any such incentive shall provide that the agency 
        shall benefit from increases in such rental income and that 
        such amounts accruing to the agency pursuant to such benefit 
        may be used only for low-income housing or to benefit the 
        residents of the public housing agency.
            ``(C) Treatment of savings.--The treatment of utility and 
        waste management costs under the formula shall provide that a 
        public housing agency shall receive the full financial benefit 
        from any reduction in the cost of utilities or waste management 
        resulting from any contract with a third party to undertake 
        energy conservation improvements in one or more of its public 
        housing projects.
        ``(3) Condition on use.--No portion of any public housing 
    project operated using amounts provided under this subsection, or 
    under this section as in effect before the effective date under 
    section 503(a) of the Quality Housing and Work Responsibility Act 
    of 1998, may be disposed of before the expiration of the 10-year 
    period beginning upon the conclusion of the fiscal year for which 
    such amounts were provided, except as otherwise provided in this 
    Act.
    ``(f) Negotiated Rulemaking Procedure.--The formulas under 
subsections (d)(2) and (e)(2) shall be developed according to 
procedures for issuance of regulations under the negotiated rulemaking 
procedure under subchapter III of chapter 5 of title 5, United States 
Code.
    ``(g) Limitations on Use of Funds.--
        ``(1) Flexibility for capital fund amounts.--Of any amounts 
    appropriated for fiscal year 2000 or any fiscal year thereafter 
    that are allocated for fiscal year 2000 or any fiscal year 
    thereafter from the Capital Fund for any public housing agency, the 
    agency may use not more than 20 percent for activities that are 
    eligible under subsection (e) for assistance with amounts from the 
    Operating Fund, but only if the public housing agency plan for the 
    agency provides for such use.
        ``(2) Full flexibility for small pha's.--Of any amounts 
    allocated for any fiscal year for any public housing agency that 
    owns or operates less than 250 public housing dwelling units, is 
    not designated pursuant to section 6(j)(2) as a troubled public 
    housing agency, and (in the determination of the Secretary) is 
    operating and maintaining its public housing in a safe, clean, and 
    healthy condition, the agency may use any such amounts for any 
    eligible activities under subsections (d)(1) and (e)(1), regardless 
    of the fund from which the amounts were allocated and provided. 
    This subsection shall take effect on the date of the enactment of 
    the Quality Housing and Work Responsibility Act of 1998.
        ``(3) Limitation on new construction.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), a public housing agency may not use any of the amounts 
        allocated for the agency from the Capital Fund or Operating 
        Fund for the purpose of constructing any public housing unit, 
        if such construction would result in a net increase from the 
        number of public housing units owned, assisted, or operated by 
        the public housing agency on October 1, 1999, including any 
        public housing units demolished as part of any revitalization 
        effort.
            ``(B) Exception regarding use of assistance.--A public 
        housing agency may use amounts allocated for the agency from 
        the Capital Fund or Operating Fund for the construction and 
        operation of housing units that are available and affordable to 
        low-income families in excess of the limitations on new 
        construction set forth in subparagraph (A), but the formulas 
        established under subsections (d)(2) and (e)(2) shall not 
        provide additional funding for the specific purpose of allowing 
        construction and operation of housing in excess of those 
        limitations (except to the extent provided in subparagraph 
        (C)).
            ``(C) Exception regarding formulas.--Subject to reasonable 
        limitations set by the Secretary, the formulas established 
        under subsections (d)(2) and (e)(2) may provide additional 
        funding for the operation and modernization costs (but not the 
        initial development costs) of housing in excess of amounts 
        otherwise permitted under this paragraph, and such amounts may 
        be so used, if--
                ``(i) such units are part of a mixed-finance project or 
            otherwise leverage significant additional private or public 
            investment; and
                ``(ii) the estimated cost of the useful life of the 
            project is less than the estimated cost of providing 
            tenant-based assistance under section 8(o) for the same 
            period of time.
    ``(h) Technical Assistance.--To the extent amounts are provided in 
advance in appropriations Acts, the Secretary may make grants or enter 
into contracts or cooperative agreements in accordance with this 
subsection for purposes of providing, either directly or indirectly--
        ``(1) technical assistance to public housing agencies, resident 
    councils, resident organizations, and resident management 
    corporations, including assistance relating to monitoring and 
    inspections;
        ``(2) training for public housing agency employees and 
    residents;
        ``(3) data collection and analysis;
        ``(4) training, technical assistance, and education to public 
    housing agencies that are--
            ``(A) at risk of being designated as troubled under section 
        6(j), to assist such agencies from being so designated; and
            ``(B) designated as troubled under section 6(j), to assist 
        such agencies in achieving the removal of that designation;
        ``(5) contract expertise;
        ``(6) training and technical assistance to assist in the 
    oversight and management of public housing or tenant-based 
    assistance; and
        ``(7) clearinghouse services in furtherance of the goals and 
    activities of this subsection.
As used in this subsection, the terms `training' and `technical 
assistance' shall include training or technical assistance and the cost 
of necessary travel for participants in such training or technical 
assistance, by or to officials and employees of the Department and of 
public housing agencies, and to residents and to other eligible 
grantees.
    ``(i) Eligibility of Units Acquired From Proceeds of Sales Under 
Demolition or Disposition Plan.--If a public housing agency uses 
proceeds from the sale of units under a homeownership program in 
accordance with section 32 to acquire additional units to be sold to 
low-income families, the additional units shall be counted as public 
housing for purposes of determining the amount of the allocation to the 
agency under this section until sale by the agency, but in no case 
longer than 5 years.
    ``(j) Penalty for Slow Expenditure of Capital Funds.--
        ``(1) Obligation of amounts.--Except as provided in paragraph 
    (4) and subject to paragraph (2), a public housing agency shall 
    obligate any assistance received under this section not later than 
    24 months after, as applicable--
            ``(A) the date on which the funds become available to the 
        agency for obligation in the case of modernization; or
            ``(B) the date on which the agency accumulates adequate 
        funds to undertake modernization, substantial rehabilitation, 
        or new construction of units.
        ``(2) Extension of time period for obligation.--The Secretary--
            ``(A) may, extend the time period under paragraph (1) for a 
        public housing agency, for such period as the Secretary 
        determines to be necessary, if the Secretary determines that 
        the failure of the agency to obligate assistance in a timely 
        manner is attributable to--
                ``(i) litigation;
                ``(ii) obtaining approvals of the Federal Government or 
            a State or local government;
                ``(iii) complying with environmental assessment and 
            abatement requirements;
                ``(iv) relocating residents;
                ``(v) an event beyond the control of the public housing 
            agency; or
                ``(vi) any other reason established by the Secretary by 
            notice published in the Federal Register;
            ``(B) shall disregard the requirements of paragraph (1) 
        with respect to any unobligated amounts made available to a 
        public housing agency, to the extent that the total of such 
        amounts does not exceed 10 percent of the original amount made 
        available to the public housing agency; and
            ``(C) may, with the prior approval of the Secretary, extend 
        the time period under paragraph (1), for an additional period 
        not to exceed 12 months, based on--
                ``(i) the size of the public housing agency;
                ``(ii) the complexity of capital program of the public 
            housing agency;
                ``(iii) any limitation on the ability of the public 
            housing agency to obligate the amounts allocated for the 
            agency from the Capital Fund in a timely manner as a result 
            of State or local law; or
                ``(iv) such other factors as the Secretary determines 
            to be relevant.
        ``(3) Effect of failure to comply.--
            ``(A) Prohibition of new assistance.--A public housing 
        agency shall not be awarded assistance under this section for 
        any month during any fiscal year in which the public housing 
        agency has funds unobligated in violation of paragraph (1) or 
        (2).
            ``(B) Withholding of assistance.--During any fiscal year 
        described in subparagraph (A), the Secretary shall withhold all 
        assistance that would otherwise be provided to the public 
        housing agency. If the public housing agency cures its failure 
        to comply during the year, it shall be provided with the share 
        attributable to the months remaining in the year.
            ``(C) Redistribution.--The total amount of any funds not 
        provided public housing agencies by operation of this paragraph 
        shall be allocated for agencies determined under section 6(j) 
        to be high-performing.
        ``(4) Exception to obligation requirements.--
            ``(A) In general.--Subject to subparagraph (B), if the 
        Secretary has consented, before the effective date under 
        section 503(a) of the Quality Housing and Work Responsibility 
        Act of 1998, to an obligation period for any agency longer than 
        provided under paragraph (1), a public housing agency that 
        obligates its funds before the expiration of that period shall 
        not be considered to be in violation of paragraph (1).
            ``(B) Prior fiscal years.--Notwithstanding subparagraph 
        (A), any funds appropriated to a public housing agency for 
        fiscal year 1997 or prior fiscal years shall be fully obligated 
        by the public housing agency not later than September 30, 1999.
        ``(5) Expenditure of amounts.--
            ``(A) In general.--A public housing agency shall spend any 
        assistance received under this section not later than 4 years 
        (plus the period of any extension approved by the Secretary 
        under paragraph (2)) after the date on which funds become 
        available to the agency for obligation.
            ``(B) Enforcement.--The Secretary shall enforce the 
        requirement of subparagraph (A) through default remedies up to 
        and including withdrawal of the funding.
        ``(6) Right of recapture.--Any obligation entered into by a 
    public housing agency shall be subject to the right of the 
    Secretary to recapture the obligated amounts for violation by the 
    public housing agency of the requirements of this subsection.
    ``(k) Emergency Reserve and Use of Amounts.--
        ``(1) Set-asides.--In each fiscal year after fiscal year 1999, 
    the Secretary shall set aside, for use in accordance with this 
    subsection, not more than 2 percent of the total amount made 
    available to carry out this section for such fiscal year. In 
    addition to amounts set aside under the preceding sentence, in each 
    fiscal year the Secretary may set from the total amount made 
    available to carry out this section for such fiscal year not more 
    than $20,000,000 for the Operation Safe Home program administered 
    by the Office of the Inspector General of the Department of Housing 
    and Urban Development, for law enforcement efforts to combat 
    violent crime on or near the premises of public and federally 
    assisted housing.
        ``(2) Use of funds.--Amounts set aside under paragraph (1) 
    shall be available to the Secretary for use for assistance, as 
    provided in paragraph (3), in connection with--
            ``(A) emergencies and other disasters; and
            ``(C) housing needs resulting from any settlement of 
        litigation; and
        ``(3) Eligible uses.--In carrying out this subsection, the 
    Secretary may use amounts set aside under this subsection to 
    provide--
            ``(A) assistance for any eligible use under the Operating 
        Fund or the Capital Fund established by this section; or
            ``(B) tenant-based assistance in accordance with section 8.
        ``(4) Limitation.--With respect to any fiscal year, the 
    Secretary may carry over not more than a total of $25,000,000 in 
    unobligated amounts set aside under this subsection for use in 
    connection with the activities described in paragraph (2) during 
    the succeeding fiscal year.
        ``(5) Publication.--The Secretary shall publish the use of any 
    amounts allocated under this subsection relating to emergencies 
    (other than disasters and housing needs resulting from any 
    settlement of litigation) in the Federal Register.
    ``(l) Treatment of Nonrental Income.--A public housing agency that 
receives income from nonrental sources (as determined by the Secretary) 
may retain and use such amounts without any decrease in the amounts 
received under this section from the Capital or Operating Fund. Any 
such nonrental amounts retained shall be used only for low-income 
housing or to benefit the residents assisted by the public housing 
agency.
    ``(m) Provision of Only Capital or Operating Assistance.--
        ``(1) Authority.--In appropriate circumstances, as determined 
    by the Secretary, a public housing agency may commit capital 
    assistance only, or operating assistance only, for public housing 
    units, which assistance shall be subject to all of the requirements 
    applicable to public housing except as otherwise provided in this 
    subsection.
        ``(2) Exemptions.--In the case of any public housing unit 
    assisted pursuant to the authority under paragraph (1), the 
    Secretary may, by regulation, reduce the period under subsection 
    (d)(3) or (e)(3), as applicable, during which such units must be 
    operated under requirements applicable to public housing. In cases 
    in which there is commitment of operating assistance but no 
    commitment of capital assistance, the Secretary may make section 8 
    requirements applicable, as appropriate, by regulation.
    ``(n) Treatment of Public Housing.--
        ``(1) Certain state and city funded housing.--
            ``(A) In general.--Notwithstanding any other provision of 
        this section--
                ``(i) for purposes of determining the allocations from 
            the Operating and Capital Funds pursuant to the formulas 
            under subsections (d)(2) and (e)(2) and determining 
            assistance pursuant to section 519(e) of the Quality 
            Housing and Work Responsibility Act of 1998 and under 
            section 9 or 14 of the United States Housing Act of 1937 
            (as in effect before the date of the enactment of this 
            Act), for any period before the implementation of such 
            formulas, the Secretary shall deem any covered locally 
            developed public housing units as public housing units 
            developed under this title and such units shall be eligible 
            for such assistance; and
                ``(ii) assistance provided under this section, under 
            such section 518(d)(3), or under such section 9 or 14 to 
            any public housing agency may be used with respect to any 
            covered locally developed public housing units.
            ``(B) Covered units.--For purposes of this paragraph, the 
        term `covered locally developed public housing units' means--
                ``(i) not more than 7,000 public housing units 
            developed pursuant to laws of the State of New York and 
            that received debt service and operating subsidies pursuant 
            to such laws; and
                ``(ii) not more than 5,000 dwelling units developed 
            pursuant to section 34 of chapter 121B of the General Laws 
            of the State of Massachusetts.
        ``(2) Reduction of asthma incidence.--Notwithstanding any other 
    provision of this section, the New York City Housing Authority may, 
    in its sole discretion, from amounts provided from the Operating 
    and Capital Funds, or from amounts provided for public housing 
    before amounts are made available from such Funds, use not more 
    than exceeding $500,000 per year for the purpose of initiating, 
    expanding or continuing a program for the reduction of the 
    incidence of asthma among residents. The Secretary shall consult 
    with the Administrator of the Environmental Protection Agency and 
    the Secretary of Health and Human Services to identify and consider 
    sources of funding for the reduction of the incidence of asthma 
    among recipients of assistance under this title.
        ``(3) Services for elderly residents.--Notwithstanding any 
    other provision of this section, the New York City Housing 
    Authority may, in its sole discretion, from amounts provided from 
    the Operating and Capital Funds, or from amounts provided for 
    public housing before the amounts are made available from such 
    Funds, use not more than $600,000 per year for the purpose of 
    developing a comprehensive plan to address the need for services 
    for elderly residents. Such plan may be developed by a partnership 
    created by such Housing Authority and may include the creation of a 
    model project for assisted living at one or more developments. The 
    model project may provide for contracting with private parties for 
    the delivery of services.
        ``(4) Effective date.--This subsection shall apply to fiscal 
    year 1999 and each fiscal year thereafter.''.
    (b) Allocation of Assistance.--Section 6 of the United States 
Housing Act of 1937 (42 U.S.C. 1437d) is amended by striking subsection 
(p).
    (c) Conforming Amendments.--The United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended--
        (1) in section 303(b)(10) (42 U.S.C. 1437aaa-2(b)(10)), by 
    striking ``under section 9'' the first place it appears and 
    inserting ``from the Operating Fund''; and
        (2) in section 305(e) (42 U.S.C. 1437aaa-4(e)), by striking 
    ``Operating subsidies'' and inserting ``Amounts from an allocation 
    from the Operating Fund''.
    (d) Transitional Ceiling Rents.--Notwithstanding section 3(a)(1) of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(1)), during the 
period ending upon the later of the implementation of the formulas 
established pursuant to subsections (d)(2) and (e)(2) of such Act (as 
amended by this section) and October 1, 1999, a public housing agency 
may take any of the following actions with respect to public housing:
        (1) New provisions.--An agency may--
            (A) adopt and apply ceiling rents that reflect the 
        reasonable market value of the housing, but that are not less 
        than--
                (i) for housing other than housing predominantly for 
            elderly or disabled families (or both), 75 percent of the 
            monthly cost to operate the housing of the agency;
                (ii) for housing predominantly for elderly or disabled 
            families (or both), 100 percent of the monthly cost to 
            operate the housing of the agency; and
                (iii) the monthly cost to make a deposit to a 
            replacement reserve (in the sole discretion of the public 
            housing agency); and
            (B) allow families to pay ceiling rents referred to in 
        subparagraph (A), unless, with respect to any family, the 
        ceiling rent established under this paragraph would exceed the 
        amount payable as rent by that family under paragraph (1).
        (2) Ceiling rents from balanced budget act, I.--An agency may 
    utilize the authority under section 3(a)(2) of the United States 
    Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect 
    immediately before the enactment of this Act, notwithstanding any 
    amendment to such section made by this Act.
        (3) Transitional ceiling rents for balanced budget act, I.--An 
    agency may utilize the authority with respect to ceiling rents 
    under section 402(b)(2) of The Balanced Budget Downpayment Act, I 
    (42 U.S.C. 1437a note), notwithstanding any other provision of law 
    (including the expiration of the applicability of such section or 
    the repeal of such section).
    (e) Transitional Provision of Assistance.--
        (1) In general.--Subject to paragraph (2), before the 
    implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) 
    of the United States Housing Act of 1937 (as amended by subsection 
    (a) of this section), the Secretary shall provide that each public 
    housing agency shall receive funding under sections 9 and 14 of the 
    United States Housing Act of 1937, as those sections existed 
    immediately before the enactment of this Act (except that such 
    sections shall be subject to any amendments to such sections that 
    may be contained in title II of this Act).
        (2) Qualifications.--Before the implementation of formulas 
    pursuant to sections 9(d)(2) and 9(e)(2) of the United States 
    Housing Act of 1937 (as amended by subsection (a) of this 
    section)--
            (A) if a public housing agency establishes a rental amount 
        that is based on a ceiling rent established pursuant to 
        subsection (d)(1) of this section, the Secretary shall take 
        into account any reduction of the per unit dwelling rental 
        income of the public housing agency resulting from the use of 
        that rental amount in calculating the contributions for the 
        public housing agency for the operation of the public housing 
        under section 9 of the United States Housing Act of 1937;
            (B) if a public housing agency establishes a rental amount 
        that is based on an adjustment to income under section 
        3(b)(5)(G) of the United States Housing Act of 1937 (as in 
        effect immediately before the enactment of this Act), the 
        Secretary shall not take into account any reduction of or any 
        increase in the per unit dwelling rental income of the public 
        housing agency resulting from the use of that rental amount in 
        calculating the contributions for the public housing agency for 
        the operation of the public housing under section 9 of the 
        United States Housing Act of 1937; and
            (C) if a public housing agency establishes a rental amount 
        other than as provided under subparagraph (A) or (B) that is 
        less than the greatest of the amounts determined under 
        subparagraphs (A), (B), and (C) of section 3(a)(1) of the 
        United States Housing Act of 1937, the Secretary shall not take 
        into account any reduction of the per unit dwelling rental 
        income of the public housing agency resulting from the use of 
        that rental amount in calculating the contributions for the 
        public housing agency for the operation of the public housing 
        under section 9 of the United States Housing Act of 1937.
    (f) Effective Date of Operating Formula.--Notwithstanding the 
effective date under section 503(a), the Secretary may extend the 
effective date of the formula under section 9(e)(2) of the United 
States Housing Act of 1937 (as amended by subsection (a) of this 
section) for up to 6 months if such additional time is necessary to 
implement such formula.
    (g) Effective Date.--Subsections (d), (e), and (f) shall take 
effect upon the date of the enactment of this Act.

SEC. 520. TOTAL DEVELOPMENT COSTS.

    (a) Definition.--Section 3(c)(1) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(c)(1)) is amended by inserting before the 
period at the end of the second sentence the following: `, but does not 
include the costs associated with the demolition of or remediation of 
environmental hazards associated with public housing units that will 
not be replaced on the project site, or other extraordinary site costs 
as determined by the Secretary''.
    (b) Determination.--Section 6(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(b)) is amended by adding at the end the 
following new paragraphs:
    ``(3) In calculating the total development cost of a project under 
paragraph (2), the Secretary shall consider only capital assistance 
provided by the Secretary to a public housing agency that are 
authorized for use in connection with the development of public 
housing, and shall exclude all other amounts, including amounts 
provided under--
        ``(A) the HOME investment partnerships program authorized under 
    title II of the Cranston-Gonzalez National Affordable Housing Act; 
    or
        ``(B) the community development block grants program under 
    title I of the Housing and Community Development Act of 1974.
    ``(4) The Secretary may restrict the amount of capital funds that a 
public housing agency may use to pay for housing construction costs. 
For purposes of this paragraph, housing construction costs include the 
actual hard costs for the construction of units, builders' overhead and 
profit, utilities from the street, and finish landscaping.''.

SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

    Section 6(j) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(j)) is amended--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph:
    ``(4) Sanctions for improper use of amounts.--
        ``(A) In general.--In addition to any other actions authorized 
    under this Act, if the Secretary finds that a public housing agency 
    receiving assistance amounts under section 9 for public housing has 
    failed to comply substantially with any provision of this Act 
    relating to the public housing program, the Secretary may--
            ``(i) terminate assistance payments under this section 9 to 
        the agency;
            ``(ii) withhold from the agency amounts from the total 
        allocations for the agency pursuant to section 9;
            ``(iii) reduce the amount of future assistance payments 
        under section 9 to the agency by an amount equal to the amount 
        of such payments that were not expended in accordance with this 
        Act;
            ``(iv) limit the availability of assistance amounts 
        provided to the agency under section 9 to programs, projects, 
        or activities not affected by such failure to comply;
            ``(v) withhold from the agency amounts allocated for the 
        agency under section 8; or
            ``(vi) order other corrective action with respect to the 
        agency.
        ``(B) Termination of compliance action.--If the Secretary takes 
    action under subparagraph (A) with respect to a public housing 
    agency, the Secretary shall--
            ``(i) in the case of action under subparagraph (A)(i), 
        resume payments of assistance amounts under section 9 to the 
        agency in the full amount of the total allocations under 
        section 9 for the agency at the time that the Secretary first 
        determines that the agency will comply with the provisions of 
        this Act relating to the public housing program;
            ``(ii) in the case of action under clause (ii) or (v) of 
        subparagraph (A), make withheld amounts available as the 
        Secretary considers appropriate to ensure that the agency 
        complies with the provisions of this Act relating to such 
        program;
            ``(iii) in the case of action under subparagraph (A)(iv), 
        release such restrictions at the time that the Secretary first 
        determines that the agency will comply with the provisions of 
        this Act relating to such program; or
            ``(iv) in the case of action under subparagraph (vi), cease 
        such action at the time that the Secretary first determines 
        that the agency will comply with the provisions of this Act 
        relating to such program.''.

SEC. 522. REPEAL OF MODERNIZATION FUND.

    (a) In General.--Section 14 of the United States Housing Act of 
1937 (42 U.S.C. 1437l) is hereby repealed.
    (b) Conforming Amendments.--
        (1) Funds for public housing development.--Section 5(c)(5) of 
    the United States Housing Act of 1937 (42 U.S.C. 1437c(c)(5)) is 
    amended by striking ``for use under section 14 or'' and inserting 
    ``for use under section 9 or''.
        (2) Allocation of assistance.--Section 213(d)(1)(B)(ii) of the 
    Housing and Community Development Act of 1974 (42 U.S.C. 
    1439(d)(1)(B)(i)) is amended by striking ``or 14''.
        (3) Moving to work demonstration.--Section 204 of the 
    Departments of Veterans Affairs and Housing and Urban Development, 
    and Independent Agencies Appropriations Act, 1996 (as contained in 
    section 101(e) of the Omnibus Consolidated Rescissions and 
    Appropriations Act of 1996; 42 U.S.C. 1437f) is amended by adding 
    at the end the following new subsection:
    ``(j) Capital and Operating Fund Assistance.--With respect to any 
public housing agency participating in the demonstration under this 
section that receives assistance from the Capital or Operating Fund 
under section 9 of the United States Housing Act of 1937 (as amended by 
the Quality Housing and Work Responsibility Act of 1998), for purposes 
of this section--
        ``(1) any reference to assistance under section 9 of the United 
    States Housing Act of 1937 shall be considered to refer also to 
    assistance provided from the Operating Fund under section 9(e) of 
    such Act (as so amended); and
        ``(2) any reference to assistance under section 14 of the 
    United States Housing Act of 1937 shall be considered to refer also 
    to assistance provided from the Capital Fund under section 9(d) of 
    such Act (as so amended).''.
        (4) Lead-based paint poisoning prevention act.--Section 302 of 
    the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822) is 
    amended--
            (A) in subsection (d)(1)--
                (i) by striking ``assisted under section 14'' and 
            inserting ``assisted with capital assistance provided under 
            section 9''; and
                (ii) by striking ``assistance under section 14'' and 
            inserting ``capital assistance provided under section 9''; 
            and
            (B) in subsection (f), by striking ``for comprehensive 
        improvement assistance under section 14'' and inserting ``under 
        the Capital Fund under section 9''.
        (5) HOME program assistance.--Section 212(d)(5) of the 
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
    12742(d)(5)) is amended by striking ``section 14'' and inserting 
    ``section 9(d)(1)''.
    (c) Savings Provisions.--
        (1) In general.--Section 14 of the United States Housing Act of 
    1937 shall apply as provided in section 519(e) of this Act.
        (2) Expansion of use of modernization funding.--Before the 
    implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) 
    of the United States Housing Act of 1937 (as amended by section 
    519(a) of this Act) an agency may utilize any authority provided 
    under or pursuant to section 14(q) of such Act (including the 
    authority under section 201(a) of the Departments of Veterans 
    Affairs and Housing and Urban Development, and Independent Agencies 
    Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-277)), 
    as such provisions (including such section 201(a)) may be amended 
    thereafter, including any amendment made by title II of this Act), 
    notwithstanding any other provision of law (including the repeal 
    made under this section, the expiration of the applicability of 
    such section 201, or any repeal of such section 201).
        (3) Effective date.--This subsection shall take effect on the 
    date of the enactment of this Act.

             PART 2--ADMISSIONS AND OCCUPANCY REQUIREMENTS

SEC. 523. FAMILY CHOICE OF RENTAL PAYMENT.

    Paragraph (2) of section 3(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(a)(2)) is amended to read as follows:
    ``(2) Rental payments for public housing families.--
        ``(A) Authority for family to select.--
            ``(i) In general.--A family residing in a public housing 
        dwelling shall pay as monthly rent for the unit the amount 
        determined under clause (i) or (ii) of subparagraph (B), 
        subject to the requirement under paragraph (3) (relating to 
        minimum rents). Each public housing agency shall provide for 
        each family residing in a public housing dwelling unit owned, 
        assisted, or operated by the agency to elect annually whether 
        the rent paid by such family shall be determined under clause 
        (i) or (ii) of subparagraph (B). A public housing agency may 
        not at any time fail to provide both such rent options for any 
        public housing dwelling unit owned, assisted, or operated by 
        the agency.
            ``(ii) Authority to retain flat and ceiling rents.--
        Notwithstanding clause (i) or any other provision of law, any 
        public housing agency that is administering flat rents or 
        ceiling rents pursuant to any authority referred to in section 
        519(d) of the Quality Housing and Work Responsibility Act of 
        1998 before the effective day of such Act may continue to 
        charge rent in accordance with such rent provisions after such 
        effective date, except that the agency shall provide for 
        families residing in public housing dwelling units owned or 
        operated by the agency to elect annually whether to pay rent 
        under such provisions or in accordance with one of the rent 
        options referred to in subparagraph (A).
        ``(B) Allowable rent structures.--
            ``(i) Flat rents.--Except as otherwise provided under this 
        clause, each public housing agency shall establish, for each 
        dwelling unit in public housing owned or operated by the 
        agency, a flat rental amount for the dwelling unit, which 
        shall--
                ``(I) be based on the rental value of the unit, as 
            determined by the public housing agency; and
                ``(II) be designed in accordance with subparagraph (D) 
            so that the rent structures do not create a disincentive 
            for continued residency in public housing by families who 
            are attempting to become economically self-sufficient 
            through employment or who have attained a level of self-
            sufficiency through their own efforts.
        The rental amount for a dwelling unit shall be considered to 
        comply with the requirements of this clause if such amount does 
        not exceed the actual monthly costs to the public housing 
        agency attributable to providing and operating the dwelling 
        unit. The preceding sentence may not be construed to require 
        establishment of rental amounts equal to or based on operating 
        costs or to prevent public housing agencies from developing 
        flat rents required under this clause in any other manner that 
        may comply with this clause.
            ``(ii) Income-based rents.--
                ``(I) In general.--The monthly rental amount determined 
            under this clause for a family shall be an amount, 
            determined by the public housing agency, that does not 
            exceed the greatest of the amounts (rounded to the nearest 
            dollar) determined under subparagraphs (A), (B), and (C) of 
            paragraph (1). This clause may not be construed to require 
            a public housing agency to charge a monthly rent in the 
            maximum amount permitted under this clause.
                ``(II) Discretion.--Subject to the limitation on 
            monthly rental amount under subclause (I), a public housing 
            agency may, in its discretion, implement a rent structure 
            under this clause requiring that a portion of the rent be 
            deposited to an escrow or savings account, imposing ceiling 
            rents, or adopting income exclusions (such as those set 
            forth in section 3(b)(5)(B)), or may establish another 
            reasonable rent structure or amount.
        ``(C) Switching rent determination methods because of hardship 
    circumstances.--Notwithstanding subparagraph (A), in the case of a 
    family that has elected to pay rent in the amount determined under 
    subparagraph (B)(i), a public housing agency shall immediately 
    provide for the family to pay rent in the amount determined under 
    subparagraph (B)(ii) during the period for which such election was 
    made upon a determination that the family is unable to pay the 
    amount determined under subparagraph (B)(i) because of financial 
    hardship, including--
            ``(i) situations in which the income of the family has 
        decreased because of changed circumstances, loss of reduction 
        of employment, death in the family, and reduction in or loss of 
        income or other assistance;
            ``(ii) an increase, because of changed circumstances, in 
        the family's expenses for medical costs, child care, 
        transportation, education, or similar items; and
            ``(iii) such other situations as may be determined by the 
        agency.
        ``(D) Encouragement of self-sufficiency.--The rental policy 
    developed by each public housing agency shall encourage and reward 
    employment and economic self-sufficiency.
        ``(E) Income reviews.--Notwithstanding the second sentence of 
    paragraph (1), in the case of families that are paying rent in the 
    amount determined under subparagraph (B)(i), the agency shall 
    review the income of such family not less than once every 3 
    years.''.

SEC. 524. OCCUPANCY BY POLICE OFFICERS AND OVER-INCOME FAMILIES.

    (a) In General.--Section 3(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(a), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
paragraphs:
        ``(4) Occupancy by police officers.--
            ``(A) In general.--Subject to subparagraph (B) and 
        notwithstanding any other provision of law, a public housing 
        agency may, in accordance with the public housing agency plan 
        for the agency, allow a police officer who is not otherwise 
        eligible for residence in public housing to reside in a public 
        housing dwelling unit. The number and location of units 
        occupied by police officers under this paragraph and the terms 
        and conditions of their tenancies shall be determined by the 
        public housing agency.
            ``(B) Increased security.--A public housing agency may take 
        the actions authorized in subparagraph (A) only for the purpose 
        of increasing security for the residents of a public housing 
        project.
            ``(C) Definition.--In this paragraph, the term `police 
        officer' means any person determined by a public housing agency 
        to be, during the period of residence of that person in public 
        housing, employed on a full-time basis as a duly licensed 
        professional police officer by a Federal, State, or local 
        government or by any agency thereof (including a public housing 
        agency having an accredited police force).
        ``(5) Occupancy by over-income families in certain public 
    housing.--
            ``(A) Authority.--Notwithstanding any other provision of 
        law, a public housing agency that owns or operates less than 
        250 units may, on a month-to-month basis, lease a dwelling unit 
        in a public housing project to an over-income family in 
        accordance with this paragraph, but only if there are no 
        eligible families applying for housing assistance from the 
        public housing agency for that month and the agency provides 
        not less than 30-day public notice of the availability of such 
        assistance.
            ``(B) Terms and conditions.--The number and location of 
        dwelling units of a public housing agency occupied under this 
        paragraph by over-income families, and the terms and conditions 
        of those tenancies, shall be determined by the public housing 
        agency, except that--
                ``(i) notwithstanding paragraph (2), rent for a unit 
            shall be in an amount that is not less than the costs to 
            operate the unit;
                ``(ii) if an eligible family applies for residence 
            after an over-income family moves in to the last available 
            unit, the over-income family shall vacate the unit in 
            accordance with notice of termination of tenancy provided 
            by the agency, which shall be provided not less than 30 
            days before such termination; and
                ``(iii) if a unit is vacant and there is no one on the 
            waiting list, the public housing agency may allow an over-
            income family to gain immediate occupancy in the unit, 
            while simultaneously providing reasonable public notice and 
            outreach with regard to availability of the unit.
            ``(C) Definition.--For purposes of this paragraph, the term 
        `over-income family' means an individual or family that is not 
        a low-income family at the time of initial occupancy.''.
    (b) Applicability.--The amendment made by this paragraph is made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 525. SITE-BASED WAITING LISTS.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by adding at the end the following new subsection:
    ``(s) Site-Based Waiting Lists.--
        ``(1) Authority.--A public housing agency may establish 
    procedures for maintaining waiting lists for admissions to public 
    housing projects of the agency, which may include (notwithstanding 
    any other law, regulation, handbook, or notice to the contrary) a 
    system of site-based waiting lists under which applicants may apply 
    directly at or otherwise designate the project or projects in which 
    they seek to reside. All such procedures shall comply with all 
    provisions of title VI of the Civil Rights Act of 1964, the Fair 
    Housing Act, and other applicable civil rights laws.
        ``(2) Notice.--Any system described in paragraph (1) shall 
    provide for the full disclosure by the public housing agency to 
    each applicant of any option available to the applicant in the 
    selection of the project in which to reside.''.

SEC. 526. PET OWNERSHIP.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section:

``SEC. 31. PET OWNERSHIP IN PUBLIC HOUSING.

    ``(a) Ownership Conditions.--A resident of a dwelling unit in 
public housing (as such term is defined in subsection (c)) may own 1 or 
more common household pets or have 1 or more common household pets 
present in the dwelling unit of such resident, subject to the 
reasonable requirements of the public housing agency, if the resident 
maintains each pet responsibly and in accordance with applicable State 
and local public health, animal control, and animal anti-cruelty laws 
and regulations and with the policies established in the public housing 
agency plan for the agency.
    ``(b) Reasonable Requirements.--The reasonable requirements 
referred to in subsection (a) may include--
        ``(1) requiring payment of a nominal fee, a pet deposit, or 
    both, by residents owning or having pets present, to cover the 
    reasonable operating costs to the project relating to the presence 
    of pets and to establish an escrow account for additional costs not 
    otherwise covered, respectively;
        ``(2) limitations on the number of animals in a unit, based on 
    unit size;
        ``(3) prohibitions on--
            ``(A) types of animals that are classified as dangerous; 
        and
            ``(B) individual animals, based on certain factors, 
        including the size and weight of the animal; and
        ``(4) restrictions or prohibitions based on size and type of 
    building or project, or other relevant conditions.
    ``(c) Pet Ownership In Public Housing Designated For Occupancy By 
Elderly or Handicapped Families.--For purposes of this section, the 
term `public housing' has the meaning given the term in section 3(b), 
except that such term does not include any public housing that is 
federally assisted rental housing for the elderly or handicapped, as 
such term is defined in section 227(d) of the Housing and Urban-Rural 
Recovery Act of 1983 (12 U.S.C. 1701r-1(d)).
    ``(d) Regulations.--This section shall take effect upon the date of 
the effectiveness of regulations issued by the Secretary to carry out 
this section. Such regulations shall be issued after notice and 
opportunity for public comment in accordance with the procedure under 
section 553 of title 5, United States Code, applicable to substantive 
rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
section).''.

   PART 3--MANAGEMENT, HOMEOWNERSHIP, AND DEMOLITION AND DISPOSITION

SEC. 529. CONTRACT PROVISIONS.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended--
        (1) in subsection (c)(4)(E), by striking ``except in the case 
    of agencies not receiving operating assistance under section 9'' 
    and inserting ``for each agency that receives assistance under this 
    title''; and
        (2) by striking subsection (e).

SEC. 530. HOUSING QUALITY REQUIREMENTS.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by inserting after subsection (e) the following new 
subsection:
    ``(f) Housing Quality Requirements.--
        ``(1) In general.--Each contract for contributions for a public 
    housing agency shall require that the agency maintain its public 
    housing in a condition that complies with standards which meet or 
    exceed the housing quality standards established under paragraph 
    (2).
        ``(2) Federal standards.--The Secretary shall establish housing 
    quality standards under this paragraph that ensure that public 
    housing dwelling units are safe and habitable. Such standards shall 
    include requirements relating to habitability, including 
    maintenance, health and sanitation factors, condition, and 
    construction of dwellings, and shall, to the greatest extent 
    practicable, be consistent with the standards established under 
    section 8(o)(8)(B)(i). The Secretary may determine whether the 
    laws, regulations, standards, or codes of any State or local 
    jurisdiction meet or exceed these standards, for purposes of this 
    subsection.
        ``(3) Annual inspections.--Each public housing agency that owns 
    or operates public housing shall make an annual inspection of each 
    public housing project to determine whether units in the project 
    are maintained in accordance with the requirements under paragraph 
    (1). The agency shall retain the results of such inspections and, 
    upon the request of the Secretary, the Inspector General for the 
    Department of Housing and Urban Development, or any auditor 
    conducting an audit under section 5(h), shall make such results 
    available.''.

SEC. 531. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    (a) In General.--Section 18 of the United States Housing Act of 
1937 (42 U.S.C. 1437p) is amended to read as follows:

``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    ``(a) Applications for Demolition and Disposition.--Except as 
provided in subsection (b), upon receiving an application by a public 
housing agency for authorization, with or without financial assistance 
under this title, to demolish or dispose of a public housing project or 
a portion of a public housing project (including any transfer to a 
resident-supported nonprofit entity), the Secretary shall approve the 
application, if the public housing agency certifies--
        ``(1) in the case of--
            ``(A) an application proposing demolition of a public 
        housing project or a portion of a public housing project, 
        that--
                ``(i) the project or portion of the public housing 
            project is obsolete as to physical condition, location, or 
            other factors, making it unsuitable for housing purposes; 
            and
                ``(ii) no reasonable program of modifications is cost-
            effective to return the public housing project or portion 
            of the project to useful life; and
            ``(B) an application proposing the demolition of only a 
        portion of a public housing project, that the demolition will 
        help to ensure the viability of the remaining portion of the 
        project;
        ``(2) in the case of an application proposing disposition by 
    sale or other transfer of a public housing project or other real 
    property subject to this title--
            ``(A) the retention of the property is not in the best 
        interests of the residents or the public housing agency 
        because--
                ``(i) conditions in the area surrounding the public 
            housing project adversely affect the health or safety of 
            the residents or the feasible operation of the project by 
            the public housing agency; or
                ``(ii) disposition allows the acquisition, development, 
            or rehabilitation of other properties that will be more 
            efficiently or effectively operated as low-income housing;
            ``(B) the public housing agency has otherwise determined 
        the disposition to be appropriate for reasons that are--
                ``(i) in the best interests of the residents and the 
            public housing agency;
                ``(ii) consistent with the goals of the public housing 
            agency and the public housing agency plan; and
                ``(iii) otherwise consistent with this title; or
            ``(C) for property other than dwelling units, the property 
        is excess to the needs of a public housing project or the 
        disposition is incidental to, or does not interfere with, 
        continued operation of a public housing project;
        ``(3) that the public housing agency has specifically 
    authorized the demolition or disposition in the public housing 
    agency plan, and has certified that the actions contemplated in the 
    public housing agency plan comply with this section;
        ``(4) that the public housing agency--
            ``(A) will notify each family residing in a project subject 
        to demolition or disposition 90 days prior to the displacement 
        date, except in cases of imminent threat to health or safety, 
        consistent with any guidelines issued by the Secretary 
        governing such notifications, that--
                ``(i) the public housing project will be demolished or 
            disposed of;
                ``(ii) the demolition of the building in which the 
            family resides will not commence until each resident of the 
            building is relocated; and
                ``(iii) each family displaced by such action will be 
            offered comparable housing--

                    ``(I) that meets housing quality standards;
                    ``(II) that is located in an area that is generally 
                not less desirable than the location of the displaced 
                person's housing; and
                    ``(III) which may include--

                        ``(aa) tenant-based assistance, except that the 
                    requirement under this clause regarding offering of 
                    comparable housing shall be fulfilled by use of 
                    tenant-based assistance only upon the relocation of 
                    such family into such housing;
                        ``(bb) project-based assistance; or
                        ``(cc) occupancy in a unit operated or assisted 
                    by the public housing agency at a rental rate paid 
                    by the family that is comparable to the rental rate 
                    applicable to the unit from which the family is 
                    vacated;
            ``(B) will provide for the payment of the actual and 
        reasonable relocation expenses of each resident to be 
        displaced;
            ``(C) will ensure that each displaced resident is offered 
        comparable housing in accordance with the notice under 
        subparagraph (A); and
            ``(D) will provide any necessary counseling for residents 
        who are displaced; and
            ``(E) will not commence demolition or complete disposition 
        until all residents residing in the building are relocated;
        ``(5) that the net proceeds of any disposition will be used--
            ``(A) unless waived by the Secretary, for the retirement of 
        outstanding obligations issued to finance the original public 
        housing project or modernization of the project; and
            ``(B) to the extent that any proceeds remain after the 
        application of proceeds in accordance with subparagraph (A), 
        for--
                ``(i) the provision of low-income housing or to benefit 
            the residents of the public housing agency; or
                ``(ii) leveraging amounts for securing commercial 
            enterprises, on-site in public housing projects of the 
            public housing agency, appropriate to serve the needs of 
            the residents; and
        ``(6) that the public housing agency has complied with 
    subsection (c).
    ``(b) Disapproval of Applications.--The Secretary shall disapprove 
an application submitted under subsection (a) if the Secretary 
determines that--
        ``(1) any certification made by the public housing agency under 
    that subsection is clearly inconsistent with information and data 
    available to the Secretary or information or data requested by the 
    Secretary; or
        ``(2) the application was not developed in consultation with--
            ``(A) residents who will be affected by the proposed 
        demolition or disposition;
            ``(B) each resident advisory board and resident council, if 
        any, of the project (or portion thereof) that will be affected 
        by the proposed demolition or disposition; and
            ``(C) appropriate government officials.
    ``(c) Resident Opportunity To Purchase in Case of Proposed 
Disposition.--
        ``(1) In general.--In the case of a proposed disposition of a 
    public housing project or portion of a project, the public housing 
    agency shall, in appropriate circumstances, as determined by the 
    Secretary, initially offer the property to any eligible resident 
    organization, eligible resident management corporation, or 
    nonprofit organization acting on behalf of the residents, if that 
    entity has expressed an interest, in writing, to the public housing 
    agency in a timely manner, in purchasing the property for continued 
    use as low-income housing.
        ``(2) Timing.--
            ``(A) Expression of interest.--A resident organization, 
        resident management corporation, or other resident-supported 
        nonprofit entity referred to in paragraph (1) may express 
        interest in purchasing property that is the subject of a 
        disposition, as described in paragraph (1), during the 30-day 
        period beginning on the date of notification of a proposed sale 
        of the property.
            ``(B) Opportunity to arrange purchase.--If an entity 
        expresses written interest in purchasing a property, as 
        provided in subparagraph (A), no disposition of the property 
        shall occur during the 60-day period beginning on the date of 
        receipt of that written notice (other than to the entity 
        providing the notice), during which time that entity shall be 
        given the opportunity to obtain a firm commitment for financing 
        the purchase of the property.
    ``(d) Replacement Units.--Notwithstanding any other provision of 
law, replacement public housing units for public housing units 
demolished in accordance with this section may be built on the original 
public housing location or in the same neighborhood as the original 
public housing location if the number of the replacement public housing 
units is significantly fewer than the number of units demolished.
    ``(e) Consolidation of Occupancy Within or Among Buildings.--
Nothing in this section may be construed to prevent a public housing 
agency from consolidating occupancy within or among buildings of a 
public housing project, or among projects, or with other housing for 
the purpose of improving living conditions of, or providing more 
efficient services to, residents.
    ``(f) De Minimis Exception to Demolition Requirements.--
Notwithstanding any other provision of this section, in any 5-year 
period a public housing agency may demolish not more than the lesser of 
5 dwelling units or 5 percent of the total dwelling units owned by the 
public housing agency, but only if the space occupied by the demolished 
unit is used for meeting the service or other needs of public housing 
residents or the demolished unit was beyond repair.
    ``(g) Uniform Relocation and Real Property Acquisition Act.--The 
Uniform Relocation and Real Property Acquisition Policies Act of 1970 
shall not apply to activities under this section.
    ``(h) Relocation and Replacement.--Of the amounts appropriated for 
tenant-based assistance under section 8 in any fiscal year, the 
Secretary may use such sums as are necessary for relocation and 
replacement housing for dwelling units that are demolished and disposed 
of from the public housing inventory (in addition to other amounts that 
may be available for such purposes).''.
    (b) Homeownership Replacement Plan.--
        (1) In general.--Notwithstanding subsections (b) and (c) of 
    section 1002 of the Emergency Supplemental Appropriations for 
    Additional Disaster Assistance, for Anti-terrorism Initiatives, for 
    Assistance in the Recovery from the Tragedy that Occurred At 
    Oklahoma City, and Rescissions Act, 1995 (Public Law 104-19; 109 
    Stat. 236), subsection (g) of section 304 of the United States 
    Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)) is repealed.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    be effective with respect to any plan for the demolition, 
    disposition, or conversion to homeownership of public housing that 
    is approved by the Secretary after September 30, 1995.
    (c) Treatment of Frost-Leland Provisions.--Notwithstanding any 
other provision of law, on and after the date of the enactment of this 
Act, the public housing projects described in section 415 of the 
Department of Housing and Urban Development--Independent Agencies 
Appropriations Act, 1988 (Public Law 100-202; 101 Stat. 1329-213), as 
in effect on April 25, 1996, shall be eligible for demolition under--
        (1) section 9 of the United States Housing Act of 1937, as 
    amended by this Act; and
        (2) section 14 of the United States Housing Act of 1937, as 
    that section existed on the day before the date of the enactment of 
    this Act.
    (c) Applicability.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.

    (a) Resident Management.--Section 20 of the United States Housing 
Act of 1937 (42 U.S.C. 1437r) is amended--
        (1) in subsection (b)(4), by inserting after ``materials'' the 
    following: ``, rent determination, community service 
    requirements,'';
        (2) by striking subsection (c) and inserting the following new 
    subsection:
    ``(c) Assistance Amounts.--A contract under this section for 
management of a public housing project by a resident management 
corporation shall provide for--
        ``(1) the public housing agency to provide a portion of the 
    assistance to agency from the Capital and Operating Funds to the 
    resident management corporation in accordance with subsection (e) 
    for purposes of operating the public housing project covered by the 
    contract and performing such other eligible activities with respect 
    to the project as may be provided under the contract;
        ``(2) the amount of income expected to be derived from the 
    project itself (from sources such as rents and charges);
        ``(3) the amount of income to be provided to the project from 
    the other sources of income of the public housing agency (such as 
    interest income, administrative fees, and rents); and
        ``(4) any income generated by a resident management corporation 
    of a public housing project that exceeds the income estimated under 
    the contract shall be used for eligible activities under 
    subsections (d)(1) and (e)(1) of section 9.'';
        (3) in subsection (d), by striking paragraph (3) and 
    redesignating paragraph (4) as paragraph (3);
        (4) in subsection (e)--
            (A) by redesignating paragraph (4) as paragraph (6);
            (B) by striking the subsection designation and heading and 
        all that follows through the end of paragraph (3) and inserting 
        the following:
    ``(e) Direct Provision of Operating and Capital Assistance.--
        ``(1) In general.--The Secretary shall directly provide 
    assistance from the Operating and Capital Funds to a resident 
    management corporation managing a public housing development 
    pursuant to a contract under this section, but only if--
            ``(A) the resident management corporation petitions the 
        Secretary for the release of the funds;
            ``(B) the contract provides for the resident management 
        corporation to assume the primary management responsibilities 
        of the public housing agency; and
            ``(C) the Secretary determines that the corporation has the 
        capability to effectively discharge such responsibilities.
        ``(2) Use of assistance.--Any assistance from the Operating and 
    Capital Funds provided to a resident management corporation 
    pursuant to this subsection shall be used for purposes of operating 
    the public housing developments of the agency and performing such 
    other eligible activities with respect to public housing as may be 
    provided under the contract.
        ``(3) Responsibility of public housing agency.--If the 
    Secretary provides direct funding to a resident management 
    corporation under this subsection, the public housing agency shall 
    not be responsible for the actions of the resident management 
    corporation.
        ``(4) Calculation of operating fund allocation.--
    Notwithstanding any provision of section 9 or any regulation under 
    such section, and subject to the exception provided in paragraph 
    (3), the portion of the amount received by a public housing agency 
    under section 9 that is due to an allocation from the Operating 
    Fund and that is allocated to a public housing project managed by a 
    resident management corporation shall not be less than the public 
    housing agency per unit monthly amount provided in the previous 
    year as determined on an individual project basis.
        ``(5) Calculation of total income.--
            ``(A) Subject to subparagraph (B), the amount of funds 
        provided by a public housing agency to a public housing project 
        managed by a resident management corporation may not be reduced 
        during the 3-year period beginning on the date of the enactment 
        of the Housing and Community Development Act of 1987 or on any 
        later date on which a resident management corporation is first 
        established for the project.
            ``(B) If the total income of a public housing agency 
        (including any amounts from the Capital or Operating Funds 
        provided to the public housing agency under section 9) is 
        reduced or increased, the income provided by the public housing 
        agency to a public housing project managed by a resident 
        management corporation shall be reduced or increased in 
        proportion to the reduction or increase in the total income of 
        the public housing agency, except that any reduction in amounts 
        from the Operating Fund that occurs as a result of fraud, 
        waste, or mismanagement by the public housing agency shall not 
        affect the funds provided to the resident management 
        corporation.''; and
            (C) in paragraph (6)(A) (as so redesignated by subparagraph 
        (A) of this paragraph), by striking ``the operating subsidies 
        provided to'' and inserting ``the allocations from the 
        Operating Fund for''; and
        (5) by striking subsections (f) and (g).
    (b) Purchase By Resident Management Corporations.--Section 21 of 
the United States Housing Act of 1937 (42 U.S.C. 1437s) is amended--
        (1) in subsection (a)--
            (A) in paragraph (2)(A), by striking ``comprehensive 
        improvement assistance under section 14'' and inserting 
        ``assistance from the Capital Fund'';
            (B) in paragraph (3)(A)(v), by striking ``minimum safety 
        and livability standards applicable under section 14'' and 
        inserting ``housing quality standards applicable under section 
        6(f)'';
            (C) in paragraph (7)--
                (i) by striking ``Annual contributions'' and inserting 
            ``Capital and operating assistance'';
                (ii) in the first sentence, by striking ``pay annual 
            contributions'' and inserting ``provide assistance under 
            section 9''; and
                (iii) by striking the last sentence and inserting the 
            following: ``Such assistance may not exceed the allocation 
            for the project under section 9.''; and
            (D) in paragraph (8), by striking ``Operating subsidies.--
        Operating subsidies'' and inserting ``Operating fund 
        allocation.--Amounts from the Operating Fund'';
        (2) in subsection (b)(3)--
            (A) by striking ``a certificate under section 8(b)(1) or a 
        housing voucher'' and inserting ``tenant-based assistance''; 
        and
            (B) by striking ``fair market rent for such certificate'' 
        and inserting ``payment standard for such assistance''; and
        (3) in subsection (d), by inserting ``, as in effect before the 
    effective date under section 503(a) of the Quality Housing and Work 
    Responsibility Act of 1998,'' after ``section 6(c)(4)(D)''.

SEC. 533. CONVERSION OF PUBLIC HOUSING TO VOUCHERS; REPEAL OF FAMILY 
              INVESTMENT CENTERS.

    (a) In General.--Section 22 of the United States Housing Act of 
1937 (42 U.S.C. 1437t) is amended to read as follows:

``SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.

    ``(a) Authority.--A public housing agency may convert any public 
housing project (or portion thereof) owned by the public housing agency 
to tenant-based assistance, but only in accordance with the 
requirements of this section.
    ``(b) Conversion Assessment.--
        ``(1) In general.--To convert public housing under this 
    section, a public housing agency shall conduct an assessment of the 
    public housing that includes--
            ``(A) a cost analysis that demonstrates whether or not the 
        cost (both on a net present value basis and in terms of new 
        budget authority requirements) of providing tenant-based 
        assistance under section 8 for the same families in 
        substantially similar dwellings over the same period of time is 
        less expensive than continuing public housing assistance in the 
        public housing project for the remaining useful life of the 
        project;
            ``(B) an analysis of the market value of the public housing 
        project both before and after rehabilitation, and before and 
        after conversion;
            ``(C) an analysis of the rental market conditions with 
        respect to the likely success of the use of tenant-based 
        assistance under section 8 in that market for the specific 
        residents of the public housing project, including an 
        assessment of the availability of decent and safe dwellings 
        renting at or below the payment standard established for 
        tenant-based assistance under section 8 by the agency;
            ``(D) the impact of the conversion to tenant-based 
        assistance under this section on the neighborhood in which the 
        public housing project is located; and
            ``(E) a plan that identifies actions, if any, that the 
        public housing agency would take with regard to converting any 
        public housing project or projects (or portions thereof) of the 
        public housing agency to tenant-based assistance.
        ``(2) Timing.--Not later than 2 years after the effective date 
    under section 503(a) of the Quality Housing and Work Responsibility 
    Act of 1998, each public housing agency shall conduct an assessment 
    under paragraph (1) or (3) of the status of each public housing 
    project owned by such agency and shall submit to the Secretary such 
    assessment. A public housing agency may otherwise undertake an 
    assessment under this subsection at any time and for any public 
    housing project (or portion thereof) owned by the agency. A public 
    housing agency may update a previously conducted assessment for a 
    project (or portion thereof) for purposes of compliance with the 
    one-year limitation under subsection (c).
        ``(3) Streamlined Assessment.--At the discretion of the 
    Secretary or at the request of a public housing agency, the 
    Secretary may waive any or all of the requirements of paragraph (1) 
    or (3) or otherwise require a streamlined assessment with respect 
    to any public housing project or class of public housing projects.
    ``(c) Criteria for Implementation of Conversion Plan.--A public 
housing agency may convert a public housing project (or portion 
thereof) owned by the agency to tenant-based assistance only pursuant 
to a conversion assessment under subsection (b) that one year and that 
demonstrates that the conversion--
        ``(1) will not be more expensive than continuing to operate the 
    public housing project (or portion thereof) as public housing;
        ``(2) will principally benefit the residents of the public 
    housing project (or portion thereof) to be converted, the public 
    housing agency, and the community; and
        ``(3) will not adversely affect the availability of affordable 
    housing in such community.
    ``(d) Conversion Plan Requirement.--A public housing project may be 
converted under this section to tenant-based assistance only as 
provided in a conversion plan under this subsection, which has not been 
disapproved by the Secretary pursuant to subsection (e). Each 
conversion plan shall--
        ``(1) be developed by the public housing agency, in 
    consultation with the appropriate public officials, with 
    significant participation by the residents of the project (or 
    portion thereof) to be converted;
        ``(2) be consistent with and part of the public housing agency 
    plan;
        ``(3) describe the conversion and future use or disposition of 
    the project (or portion thereof) and include an impact analysis on 
    the affected community;
        ``(4) provide that the public housing agency shall--
            ``(A) notify each family residing in a public housing 
        project (or portion) to be converted under the plan 90 days 
        prior to the displacement date except in cases of imminent 
        threat to health or safety, consistent with any guidelines 
        issued by the Secretary governing such notifications, that--
                ``(i) the public housing project (or portion) will be 
            removed from the inventory of the public housing agency; 
            and
                ``(ii) each family displaced by such action will be 
            offered comparable housing--

                    ``(I) that meets housing quality standards;
                    ``(II) that is located in an area that is generally 
                not less desirable than the location of the displaced 
                person's housing; and
                    ``(III) which may include--

                        ``(aa) tenant-based assistance, except that the 
                    requirement under this clause regarding offering of 
                    comparable housing shall be fulfilled by use of 
                    tenant-based assistance only upon the relocation of 
                    such family into such housing;
                        ``(bb) project-based assistance; or
                        ``(cc) occupancy in a unit operated or assisted 
                    by the public housing agency at a rental rate paid 
                    by the family that is comparable to the rental rate 
                    applicable to the unit from which the family is 
                    vacated;
            ``(B) provide any necessary counseling for families 
        displaced by such action;
            ``(C) ensure that, if the project (or portion) converted is 
        used as housing after such conversion, each resident may choose 
        to remain in their dwelling unit in the project and use the 
        tenant-based assistance toward rent for that unit; and
            ``(D) provide any actual and reasonable relocation expenses 
        for families displaced by the conversion; and
        ``(5) provide that any proceeds to the agency from the 
    conversion will be used subject to the limitations that are 
    applicable under section 18(a)(5) to proceeds resulting from the 
    disposition or demolition of public housing.
    ``(e) Review and Approval of Conversion Plans.--The Secretary shall 
disapprove a conversion plan only if--
        ``(1) the plan is plainly inconsistent with the conversion 
    assessment for the agency developed under subsection (b);
        ``(2) there is reliable information and data available to the 
    Secretary that contradicts that conversion assessment; or
        ``(3) the plan otherwise fails to meet the requirements of this 
    section.
    ``(f) Tenant-Based Assistance.--To the extent approved by the 
Secretary, the funds used by the public housing agency to provide 
tenant-based assistance under section 8 shall be added to the annual 
contribution contract administered by the public housing agency.''.
    (b) Savings Provision.--The amendment made by subsection (a) shall 
not affect any contract or other agreement entered into under section 
22 of the United States Housing Act of 1937, as such section existed 
immediately before the effective date under section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998.

SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT 
              MANAGER AT REQUEST OF RESIDENTS.

    The United States Housing Act of 1937 is amended by striking 
section 25 (42 U.S.C. 1437w) and inserting the following new section:

``SEC. 25. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT 
              MANAGER AT REQUEST OF RESIDENTS.

    ``(a) Authority.--The Secretary may transfer the responsibility and 
authority for management of specified housing (as such term is defined 
in subsection (h)) from a public housing agency to an eligible 
management entity, in accordance with the requirements of this section, 
if--
        ``(1) a request for transfer of management of such housing is 
    made and approved in accordance with subsection (b); and
        ``(2) the Secretary or the public housing agency, as 
    appropriate pursuant to subsection (b), determines that--
            ``(A) due to the mismanagement of the agency, such housing 
        has deferred maintenance, physical deterioration, or 
        obsolescence of major systems and other deficiencies in the 
        physical plant of the project;
            ``(B) such housing is located in an area such that the 
        housing is subject to recurrent vandalism and criminal activity 
        (including drug-related criminal activity); and
            ``(C) the residents can demonstrate that the elements of 
        distress for such housing specified in subparagraphs (A) and 
        (B) can be remedied by an entity or entities, identified by the 
        residents, that has or have a demonstrated capacity to manage, 
        with reasonable expenses for modernization.
    ``(b) Request for Transfer.--The responsibility and authority for 
managing specified housing may be transferred only pursuant to a 
request made by a majority vote of the residents for the specified 
housing that--
        ``(1) in the case of specified housing that is owned by a 
    public housing agency that is designated as a troubled agency under 
    section 6(j)(2)--
            ``(A) is made to the public housing agency or the 
        Secretary; and
            ``(B) is approved by the agency or the Secretary; or
        ``(2) in the case of specified housing that is owned by a 
    public housing agency that is not designated as a troubled agency 
    under section 6(j)(2)--
            ``(A) is made to and approved by the public housing agency; 
        or
            ``(B) if a request is made to the agency pursuant to 
        subparagraph (A) and is not approved, is subsequently made to 
        and approved by the Secretary.
    ``(c) Capital and Operating Assistance.--Pursuant to a contract 
under subsection (d), the Secretary shall require the public housing 
agency for specified housing to provide to the manager for the housing, 
from any assistance from the Capital and Operating Funds under section 
9 for the agency, fair and reasonable amounts for the housing for 
eligible capital and operating activities under subsection (d)(1) and 
(e)(1) of section 9. The amount made available under this subsection to 
a manager shall be determined by the Secretary based on the share for 
the specified housing of the aggregate amount of assistance from such 
Funds for the public housing agency transferring the housing, taking 
into consideration the operating and capital improvement needs of the 
specified housing, the operating and capital improvement needs of the 
remaining public housing units managed by the public housing agency, 
and the public housing agency plan of such agency.
    ``(d) Contract Between Secretary and Manager.--
        ``(1) Requirements.--Pursuant to the approval of a request 
    under this section for transfer of the management of specified 
    housing, the Secretary shall enter into a contract with the 
    eligible management entity.
        ``(2) Terms.--A contract under this subsection shall contain 
    provisions establishing the rights and responsibilities of the 
    manager with respect to the specified housing and the Secretary and 
    shall be consistent with the requirements of this Act applicable to 
    public housing projects.
    ``(e) Compliance With Public Housing Agency Plan.--A manager of 
specified housing under this section shall comply with the approved 
public housing agency plan applicable to the housing and shall submit 
such information to the public housing agency from which management was 
transferred as may be necessary for such agency to prepare and update 
its public housing agency plan.
    ``(f) Demolition and Disposition by Manager.--A manager under this 
section may demolish or dispose of specified housing only if, and in 
the manner, provided for in the public housing agency plan for the 
agency transferring management of the housing.
    ``(g) Limitation on PHA Liability.--A public housing agency that is 
not a manager for specified housing shall not be liable for any act or 
failure to act by a manager or resident council for the specified 
housing.
    ``(h) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Eligible management entity.--The term `eligible 
    management entity' means, with respect to any public housing 
    project, any of the following entities:
            ``(A) Nonprofit organization.--A public or private 
        nonprofit organization, which may--
                ``(i) include a resident management corporation; and
                ``(ii) not include the public housing agency that owns 
            or operates the project.
            ``(B) For-profit entity.--A for-profit entity that has 
        demonstrated experience in providing low-income housing.
            ``(C) State or local government.--A State or local 
        government, including an agency or instrumentality thereof.
            ``(D) Public housing agency.--A public housing agency 
        (other than the public housing agency that owns or operates the 
        project).
    The term does not include a resident council.
        ``(2) Manager.--The term `manager' means any eligible 
    management entity that has entered into a contract under this 
    section with the Secretary for the management of specified housing.
        ``(3) Nonprofit.--The term `nonprofit' means, with respect to 
    an organization, association, corporation, or other entity, that no 
    part of the net earnings of the entity inures to the benefit of any 
    member, founder, contributor, or individual.
        ``(4) Private nonprofit organization.--The term `private 
    nonprofit organization' means any private organization (including a 
    State or locally chartered organization) that--
            ``(A) is incorporated under State or local law;
            ``(B) is nonprofit in character;
            ``(C) complies with standards of financial accountability 
        acceptable to the Secretary; and
            ``(D) has among its purposes significant activities related 
        to the provision of decent housing that is affordable to low-
        income families.
        ``(5) Public nonprofit organization.--The term `public 
    nonprofit organization' means any public entity that is nonprofit 
    in character.
        ``(6) Specified housing.--The term `specified housing' means a 
    public housing project or projects, or a portion of a project or 
    projects, for which the transfer of management is requested under 
    this section. The term includes one or more contiguous buildings 
    and an area of contiguous row houses, but in the case of a single 
    building, the building shall be sufficiently separable from the 
    remainder of the project of which it is part to make transfer of 
    the management of the building feasible for purposes of this 
    section.''.

SEC. 535. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
              TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

    (a) In General.--Section 24 of the United States Housing Act of 
1937 (42 U.S.C. 1437v) is amended to read as follows:

``SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
              TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

    ``(a) Purposes.--The purpose of this section is to provide 
assistance to public housing agencies for the purposes of--
        ``(1) improving the living environment for public housing 
    residents of severely distressed public housing projects through 
    the demolition, rehabilitation, reconfiguration, or replacement of 
    obsolete public housing projects (or portions thereof);
        ``(2) revitalizing sites (including remaining public housing 
    dwelling units) on which such public housing projects are located 
    and contributing to the improvement of the surrounding 
    neighborhood;
        ``(3) providing housing that will avoid or decrease the 
    concentration of very low-income families; and
        ``(4) building sustainable communities.
    ``(b) Grant Authority.--The Secretary may make grants as provided 
in this section to applicants whose applications for such grants are 
approved by the Secretary under this section.
    ``(c) Contribution Requirement.--
        ``(1) In general.--The Secretary may not make any grant under 
    this section to any applicant unless the applicant certifies to the 
    Secretary that the applicant will--
            ``(A) supplement the aggregate amount of assistance 
        provided under this section with an amount of funds from 
        sources other than this section equal to not less than 5 
        percent of the amount provided under this section; and
            ``(B) in addition to supplemental amounts provided in 
        accordance with subparagraph (A), if the applicant uses more 
        than 5 percent of the amount of assistance provided under this 
        section for services under subsection (d)(1)(L), provide 
        supplemental funds from sources other than this section in an 
        amount equal to the amount so used in excess of 5 percent.
        ``(2) Supplemental funds.--In calculating the amount of 
    supplemental funds provided by a grantee for purposes of paragraph 
    (1), the grantee may include amounts from other Federal sources, 
    any State or local government sources, any private contributions, 
    the value of any donated material or building, the value of any 
    lease on a building, the value of the time and services contributed 
    by volunteers, and the value of any other in-kind services or 
    administrative costs provided.
        ``(3) Exemption.--If assistance provided under this title will 
    be used only for providing tenant-based assistance under section 8 
    or demolition of public housing (without replacement), the 
    Secretary may exempt the applicant from the requirements under 
    paragraph (1)(A).
    ``(d) Eligible Activities.--
        ``(1) In general.--Grants under this section may be used for 
    activities to carry out revitalization programs for severely 
    distressed public housing, including--
            ``(A) architectural and engineering work;
            ``(B) redesign, rehabilitation, or reconfiguration of a 
        severely distressed public housing project, including the site 
        on which the project is located;
            ``(C) the demolition, sale, or lease of the site, in whole 
        or in part;
            ``(D) covering the administrative costs of the applicant, 
        which may not exceed such portion of the assistance provided 
        under this section as the Secretary may prescribe;
            ``(E) payment of reasonable legal fees;
            ``(F) providing reasonable moving expenses for residents 
        displaced as a result of the revitalization of the project;
            ``(G) economic development activities that promote the 
        economic self-sufficiency of residents under the revitalization 
        program;
            ``(H) necessary management improvements;
            ``(I) leveraging other resources, including additional 
        housing resources, retail supportive services, jobs, and other 
        economic development uses on or near the project that will 
        benefit future residents of the site;
            ``(J) replacement housing (including appropriate 
        homeownership downpayment assistance for displaced residents or 
        other appropriate replacement homeownership activities) and 
        rental assistance under section 8;
            ``(K) transitional security activities; and
            ``(L) necessary supportive services, except that not more 
        than 15 percent of the amount of any grant may be used for 
        activities under this paragraph.
        ``(2) Endowment trust for supportive services.--In using grant 
    amounts under this section made available in fiscal year 2000 or 
    thereafter for supportive services under paragraph (1)(L), a public 
    housing agency may deposit such amounts in an endowment trust to 
    provide supportive services over such period of time as the agency 
    determines. Such amounts shall be provided to the agency by the 
    Secretary in a lump sum when requested by the agency, shall be 
    invested in a wise and prudent manner, and shall be used (together 
    with any interest thereon earned) only for eligible uses pursuant 
    to paragraph (1)(L). A public housing agency may use amounts in an 
    endowment trust under this paragraph in conjunction with other 
    amounts donated or otherwise made available to the trust for 
    similar purposes.
    ``(e) Application and Selection.--
        ``(1) Application.--An application for a grant under this 
    section shall demonstrate the appropriateness of the proposal in 
    the context of the local housing market relative to other 
    alternatives, and shall include such other information and be 
    submitted at such time and in accordance with such procedures, as 
    the Secretary shall prescribe.
        ``(2) Selection criteria.--The Secretary shall establish 
    selection criteria for the award of grants under this section and 
    shall include such factors as--
            ``(A) the relationship of the grant to the public housing 
        agency plan for the applicant and how the grant will result in 
        a revitalized site that will enhance the neighborhood in which 
        the project is located and enhance economic opportunities for 
        residents;
            ``(B) the capability and record of the applicant public 
        housing agency, or any alternative management entity for the 
        agency, for managing large-scale redevelopment or modernization 
        projects, meeting construction timetables, and obligating 
        amounts in a timely manner;
            ``(C) the extent to which the applicant could undertake 
        such activities without a grant under this section;
            ``(D) the extent of involvement of residents, State and 
        local governments, private service providers, financing 
        entities, and developers, in the development of a 
        revitalization program for the project;
            ``(E) the need for affordable housing in the community;
            ``(F) the supply of other housing available and affordable 
        to families receiving tenant-based assistance under section 8;
            ``(G) the amount of funds and other resources to be 
        leveraged by the grant;
            ``(H) the extent of the need for, and the potential impact 
        of, the revitalization program; and
            ``(I) such other factors as the Secretary considers 
        appropriate.
        ``(3) Applicability of selection criteria.--The Secretary may 
    determine not to apply certain of the selection criteria 
    established pursuant to paragraph (2) when awarding grants for 
    demolition only, tenant-based assistance only, or other specific 
    categories of revitalization activities. This section may not be 
    construed to require any application for a grant under this section 
    to include demolition of public housing or to preclude use of grant 
    amounts for rehabilitation or rebuilding of any housing on an 
    existing site.
    ``(f) Cost Limits.--Subject to the provisions of this section, the 
Secretary--
        ``(1) shall establish cost limits on eligible activities under 
    this section sufficient to provide for effective revitalization 
    programs; and
        ``(2) may establish other cost limits on eligible activities 
    under this section.
    ``(g) Disposition and Replacement.--Any severely distressed public 
housing disposed of pursuant to a revitalization plan and any public 
housing developed in lieu of such severely distressed housing, shall be 
subject to the provisions of section 18. Severely distressed public 
housing demolished pursuant to a revitalization plan shall not be 
subject to the provisions of section 18.
    ``(h) Administration by Other Entities.--The Secretary may require 
a grantee under this section to make arrangements satisfactory to the 
Secretary for use of an entity other than the public housing agency to 
carry out activities assisted under the revitalization plan, if the 
Secretary determines that such action will help to effectuate the 
purposes of this section.
    ``(i) Withdrawal of Funding.--If a grantee under this section does 
not proceed within a reasonable timeframe, in the determination of the 
Secretary, the Secretary shall withdraw any grant amounts under this 
section that have not been obligated by the public housing agency. The 
Secretary shall redistribute any withdrawn amounts to one or more other 
applicants eligible for assistance under this section or to one or more 
other entities capable of proceeding expeditiously in the same locality 
in carrying out the revitalization plan of the original grantee.
    ``(j) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Applicant.--The term `applicant' means--
            ``(A) any public housing agency that is not designated as 
        troubled pursuant to section 6(j)(2);
            ``(B) any public housing agency for which a private housing 
        management agent has been selected, or a receiver has been 
        appointed, pursuant to section 6(j)(3); and
            (C) any public housing agency that is designated as 
        troubled pursuant to section 6(j)(2) and that--
                ``(i) is so designated principally for reasons that 
            will not affect the capacity of the agency to carry out a 
            revitalization program;
                ``(ii) is making substantial progress toward 
            eliminating the deficiencies of the agency; or
                ``(iii) is otherwise determined by the Secretary to be 
            capable of carrying out a revitalization program.
        ``(2) Severely distressed public housing.--The term `severely 
    distressed public housing' means a public housing project (or 
    building in a project)--
            ``(A) that--
                ``(i) requires major redesign, reconstruction or 
            redevelopment, or partial or total demolition, to correct 
            serious deficiencies in the original design (including 
            inappropriately high population density), deferred 
            maintenance, physical deterioration or obsolescence of 
            major systems and other deficiencies in the physical plant 
            of the project;
                ``(ii) is a significant contributing factor to the 
            physical decline of and disinvestment by public and private 
            entities in the surrounding neighborhood;
                ``(iii)(I) is occupied predominantly by families who 
            are very low-income families with children, are unemployed, 
            and dependent on various forms of public assistance; or
                ``(II) has high rates of vandalism and criminal 
            activity (including drug-related criminal activity) in 
            comparison to other housing in the area;
                ``(iv) cannot be revitalized through assistance under 
            other programs, such as the program for capital and 
            operating assistance for public housing under this Act, or 
            the programs under sections 9 and 14 of the United States 
            Housing Act of 1937 (as in effect before the effective date 
            under under section 503(a) the Quality Housing and Work 
            Responsibility Act of 1998), because of cost constraints 
            and inadequacy of available amounts; and
                ``(v) in the case of individual buildings, is, in the 
            Secretary's determination, sufficiently separable from the 
            remainder of the project of which the building is part to 
            make use of the building feasible for purposes of this 
            section; or
            ``(B) that was a project described in subparagraph (A) that 
        has been legally vacated or demolished, but for which the 
        Secretary has not yet provided replacement housing assistance 
        (other than tenant-based assistance).
        ``(3) Supportive services.--The term `supportive services' 
    includes all activities that will promote upward mobility, self-
    sufficiency, and improved quality of life for the residents of the 
    public housing project involved, including literacy training, job 
    training, day care, transportation, and economic development 
    activities.
    ``(k) Grantee Reporting.--The Secretary shall require grantees of 
assistance under this section to report the sources and uses of all 
amounts expended for revitalization plans.
    ``(l) Annual Report.--The Secretary shall submit to the Congress an 
annual report setting forth--
        ``(1) the number, type, and cost of public housing units 
    revitalized pursuant to this section;
        ``(2) the status of projects identified as severely distressed 
    public housing;
        ``(3) the amount and type of financial assistance provided 
    under and in conjunction with this section; and
        ``(4) the recommendations of the Secretary for statutory and 
    regulatory improvements to the program established by this section.
    ``(m) Funding.--
        ``(1) Authorization of appropriations.--There are authorized to 
    be appropriated for grants under this section $600,000,000 for 
    fiscal year 1999 and such sums as may be necessary for each of 
    fiscal years 2000, 2001, and 2002.
        ``(2) Technical assistance and program oversight.--Of the 
    amount appropriated pursuant to paragraph (1) for any fiscal year, 
    the Secretary may use up to 2 percent for technical assistance or 
    contract expertise. Such assistance or contract expertise may be 
    provided directly or indirectly by grants, contracts, or 
    cooperative agreements, and shall include training, and the cost of 
    necessary travel for participants in such training, by or to 
    officials of the Department of Housing and Urban Development, of 
    public housing agencies, and of residents.
    ``(n) Sunset.--No assistance may be provided under this section 
after September 30, 2002.''.
    (b) Applicability.--The amendment made by this section is made on, 
and shall apply beginning upon, the date of the enactment of this Act.

SEC. 536. HOMEOWNERSHIP.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section:

``SEC. 32. RESIDENT HOMEOWNERSHIP PROGRAMS.

    ``(a) In General.--A public housing agency may carry out a 
homeownership program in accordance with this section and the public 
housing agency plan of the agency to make public housing dwelling 
units, public housing projects, and other housing projects available 
for purchase by low-income families for use only as principal 
residences for such families. An agency may transfer a unit pursuant to 
a homeownership program only if the program is authorized under this 
section and approved by the Secretary.
    ``(b) Participating Units.--A program under this section may cover 
any existing public housing dwelling units or projects, and may include 
other dwelling units and housing owned, assisted, or operated, or 
otherwise acquired for use under such program, by the public housing 
agency.
    ``(c) Eligible Purchasers.--
        ``(1) Low-income requirement.--Only low-income families 
    assisted by a public housing agency, other low-income families, and 
    entities formed to facilitate such sales by purchasing units for 
    resale to low-income families shall be eligible to purchase housing 
    under a homeownership program under this section.
        ``(2) Other requirements.--A public housing agency may 
    establish other requirements or limitations for families to 
    purchase housing under a homeownership program under this section, 
    including requirements or limitations regarding employment or 
    participation in employment counseling or training activities, 
    criminal activity, participation in homeownership counseling 
    programs, evidence of regular income, and other requirements. In 
    the case of purchase by an entity for resale to low-income 
    families, the entity shall sell the units to low-income families 
    within 5 years from the date of its acquisition of the units. The 
    entity shall use any net proceeds from the resale and from managing 
    the units, as determined in accordance with guidelines of the 
    Secretary, for housing purposes, such as funding resident 
    organizations and reserves for capital replacements.
    ``(d) Right of First Refusal.--In making any sale under this 
section, the public housing agency shall initially offer the public 
housing unit at issue to the resident or residents occupying that unit, 
if any, or to an organization serving as a conduit for sales to any 
such resident.
    ``(e) Protection of Nonpurchasing Residents.--If a public housing 
resident does not exercise the right of first refusal under subsection 
(d) with respect to the public housing unit in which the resident 
resides, the public housing agency--
        ``(1) shall notify the resident residing in the unit 90 days 
    prior to the displacement date except in cases of imminent threat 
    to health or safety, consistent with any guidelines issued by the 
    Secretary governing such notifications, that--
            ``(A) the public housing unit will be sold;
            ``(B) the transfer of possession of the unit will occur 
        until the resident is relocated; and
            ``(C) each resident displaced by such action will be 
        offered comparable housing--
                ``(i) that meets housing quality standards;
                ``(ii) that is located in an area that is generally not 
            less desirable than the location of the displaced 
            resident's housing; and
                ``(iii) which may include--

                    ``(I) tenant-based assistance, except that the 
                requirement under this subclause regarding offering of 
                comparable housing shall be fulfilled by use of tenant-
                based assistance only upon the relocation of such 
                resident into such housing;
                    ``(II) project-based assistance; or
                    ``(III) occupancy in a unit owned, operated, or 
                assisted by the public housing agency at a rental rate 
                paid by the resident that is comparable to the rental 
                rate applicable to the unit from which the resident is 
                vacated;

        ``(2) shall provide for the payment of the actual and 
    reasonable relocation expenses of the resident to be displaced;
        ``(3) shall ensure that the displaced resident is offered 
    comparable housing in accordance with the notice under paragraph 
    (1);
        ``(4) shall provide any necessary counseling for the displaced 
    resident; and
        ``(5) shall not transfer possession of the unit until the 
    resident is relocated.
    ``(f) Financing and Assistance.--A homeownership program under this 
section may provide financing for acquisition of housing by families 
purchasing under the program, or for acquisition of housing by the 
public housing agency for sale under the program, in any manner 
considered appropriate by the agency (including sale to a resident 
management corporation).
    ``(g) Downpayment Requirement.--
        ``(1) In general.--Each family purchasing housing under a 
    homeownership program under this section shall be required to 
    provide from its own resources a downpayment in connection with any 
    loan for acquisition of the housing, in an amount determined by the 
    public housing agency. Except as provided in paragraph (2), the 
    agency shall permit the family to use grant amounts, gifts from 
    relatives, contributions from private sources, and similar amounts 
    as downpayment amounts in such purchase.
        ``(2) Direct family contribution.--In purchasing housing 
    pursuant to this section, each family shall contribute an amount of 
    the downpayment, from resources of the family other than grants, 
    gifts, contributions, or other similar amounts referred to in 
    paragraph (1), that is not less than 1 percent of the purchase 
    price.
    ``(h) Ownership Interests.--A homeownership program under this 
section may provide for sale to the purchasing family of any ownership 
interest that the public housing agency considers appropriate under the 
program, including ownership in fee simple, a condominium interest, an 
interest in a limited dividend cooperative, a shared appreciation 
interest with a public housing agency providing financing.
    ``(i) Resale.--
        ``(1) Authority and limitation.--A homeownership program under 
    this section shall permit the resale of a dwelling unit purchased 
    under the program by an eligible family, but shall provide such 
    limitations on resale as the agency considers appropriate (whether 
    the family purchases directly from the agency or from another 
    entity) for the agency to recapture--
            ``(A) some or all of the economic gain derived from any 
        such resale occurring during the 5-year period beginning upon 
        purchase of the dwelling unit by the eligible family; and
            ``(B) after the expiration of such 5-year period, only such 
        amounts as are equivalent to the assistance provided under this 
        section by the agency to the purchaser.
        ``(2) Considerations.--The limitations referred to in paragraph 
    (1)(A) may provide for consideration of the aggregate amount of 
    assistance provided under the program to the family, the 
    contribution to equity provided by the purchasing eligible family, 
    the period of time elapsed between purchase under the homeownership 
    program and resale, the reason for resale, any improvements to the 
    property made by the eligible family, any appreciation in the value 
    of the property, and any other factors that the agency considers 
    appropriate.
    ``(j) Net Proceeds.--The net proceeds of any sales under a 
homeownership program under this section remaining after payment of all 
costs of the sale shall be used for purposes relating to low-income 
housing and in accordance with the public housing agency plan of the 
agency carrying out the program.
    ``(k) Homeownership Assistance.--From amounts distributed to a 
public housing agency under the Capital Fund under section 9(d), or 
from other income earned by the public housing agency, the public 
housing agency may provide assistance to public housing residents to 
facilitate the ability of those residents to purchase a principal 
residence, including a residence other than a residence located in a 
public housing project.
    ``(l) Inapplicability of Disposition Requirements.--The provisions 
of section 18 shall not apply to disposition of public housing dwelling 
units under a homeownership program under this section.''.

SEC. 537. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
              BASED ASSISTANCE.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 33. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
              BASED ASSISTANCE.

    ``(a) Identification of Units.--Each public housing agency shall 
identify all public housing projects of the public housing agency that 
meet all of the following requirements:
        ``(1) The project is on the same or contiguous sites.
        ``(2) The project is determined by the public housing agency to 
    be distressed, which determination shall be made in accordance with 
    guidelines established by the Secretary, which guidelines shall 
    take into account the criteria established in the Final Report of 
    the National Commission on Severely Distressed Public Housing 
    (August 1992).
        ``(3) The project--
            ``(A) is identified as distressed housing under paragraph 
        (2) for which the public housing agency cannot assure the long-
        term viability as public housing through reasonable 
        modernization expenses, density reduction, achievement of a 
        broader range of family income, or other measures; or
            ``(B) has an estimated cost, during the remaining useful 
        life of the project, of continued operation and modernization 
        as public housing that exceeds the estimated cost, during the 
        remaining useful life of the project, of providing tenant-based 
        assistance under section 8 for all families in occupancy, based 
        on appropriate indicators of cost (such as the percentage of 
        total development costs required for modernization).
    ``(b) Consultation.--Each public housing agency shall consult with 
the appropriate public housing residents and the appropriate unit of 
general local government in identifying any public housing projects 
under subsection (a).
    ``(c) Plan for Removal of Units From Inventories of PHA's.--
        ``(1) Development.--Each public housing agency shall develop 
    and carry out a 5-year plan in conjunction with the Secretary for 
    the removal of public housing units identified under subsection (a) 
    from the inventory of the public housing agency and the annual 
    contributions contract.
        ``(2) Approval.--Each plan required under paragraph (1) shall--
            ``(A) be included as part of the public housing agency 
        plan;
            ``(B) be certified by the relevant local official to be in 
        accordance with the comprehensive housing affordability 
        strategy under title I of the Housing and Community Development 
        Act of 1992; and
            ``(C) include a description of any disposition and 
        demolition plan for the public housing units.
        ``(3) Extensions.--The Secretary may extend the 5-year deadline 
    described in paragraph (1) by not more than an additional 5 years 
    if the Secretary makes a determination that the deadline is 
    impracticable.
        ``(4) Review by secretary.--
            ``(A) Failure to identify projects.--If the Secretary 
        determines, based on a plan submitted under this subsection, 
        that a public housing agency has failed to identify 1 or more 
        public housing projects that the Secretary determines should 
        have been identified under subsection (a), the Secretary may 
        designate the public housing projects to be removed from the 
        inventory of the public housing agency pursuant to this 
        section.
            ``(B) Erroneous identification of projects.--If the 
        Secretary determines, based on a plan submitted under this 
        subsection, that a public housing agency has identified 1 or 
        more public housing projects that should not have been 
        identified pursuant to subsection (a), the Secretary shall--
                ``(i) require the public housing agency to revise the 
            plan of the public housing agency under this subsection; 
            and
                ``(ii) prohibit the removal of any such public housing 
            project from the inventory of the public housing agency 
            under this section.
    ``(d) Conversion to Tenant-Based Assistance.--
        ``(1) In general.--To the extent approved in advance in 
    appropriations Acts, the Secretary shall make budget authority 
    available to a public housing agency to provide assistance under 
    this Act to families residing in any public housing project that, 
    pursuant to this section, is removed from the inventory of the 
    agency and the annual contributions contract of the agency.
        ``(2) Conversion requirements.--Each agency carrying out a plan 
    under subsection (c) for removal of public housing dwelling units 
    from the inventory of the agency shall--
            ``(A) notify each family residing in a public housing 
        project to be converted under the plan 90 days prior to the 
        displacement date, except in cases of imminent threat to health 
        or safety, consistent with any guidelines issued by the 
        Secretary governing such notifications, that--
                ``(i) the public housing project will be removed from 
            the inventory of the public housing agency; and
                ``(ii) each family displaced by such action will be 
            offered comparable housing--

                    ``(I) that meets housing quality standards; and
                    ``(II) which may include--

                        ``(aa) tenant-based assistance, except that the 
                    requirement under this clause regarding offering of 
                    comparable housing shall be fulfilled by use of 
                    tenant-based assistance only upon the relocation of 
                    such family into such housing;
                        ``(bb) project-based assistance; or
                        ``(cc) occupancy in a unit operated or assisted 
                    by the public housing agency at a rental rate paid 
                    by the family that is comparable to the rental rate 
                    applicable to the unit from which the family is 
                    vacated.
            ``(B) provide any necessary counseling for families 
        displaced by such action;
            ``(C) ensure that, if the project (or portion) converted is 
        used as housing after such conversion, each resident may choose 
        to remain in their dwelling unit in the project and use the 
        tenant-based assistance toward rent for that unit;
            ``(D) ensure that each displaced resident is offered 
        comparable housing in accordance with the notice under 
        subparagraph (A); and
            ``(E) provide any actual and reasonable relocation expenses 
        for families displaced by such action.
    ``(e) Cessation of Unnecessary Spending.--Notwithstanding any other 
provision of law, if, in the determination of the Secretary, a project 
or projects of a public housing agency meet or are likely to meet the 
criteria set forth in subsection (a), the Secretary may direct the 
agency to cease additional spending in connection with such project or 
projects until the Secretary determines or approves an appropriate 
course of action with respect to such project or projects under this 
section, except to the extent that failure to expend such amounts would 
endanger the health or safety of residents in the project or projects.
    ``(f) Use of Budget Authority.--Notwithstanding any other provision 
of law, if a project or projects are identified pursuant to subsection 
(a), the Secretary may authorize or direct the transfer, to the tenant-
based assistance program of such agency or to appropriate site 
revitalization or other capital improvements approved by the Secretary, 
of--
        ``(1) in the case of an agency receiving assistance under the 
    comprehensive improvement assistance program, any amounts obligated 
    by the Secretary for the modernization of such project or projects 
    pursuant to section 14 of the United States Housing Act of 1937 (as 
    in effect immediately before the effective date under section 
    503(a) of the Quality Housing and Work Responsibility Act of 1998);
        ``(2) in the case of an agency receiving public housing 
    modernization assistance by formula pursuant to such section 14, 
    any amounts provided to the agency which are attributable pursuant 
    to the formula for allocating such assistance to such project or 
    projects;
        ``(3) in the case of an agency receiving assistance for the 
    major reconstruction of obsolete projects, any amounts obligated by 
    the Secretary for the major reconstruction of such project or 
    projects pursuant to section 5(j)(2) of the United States Housing 
    Act of 1937, as in effect immediately before the effective date 
    under section 503(a) of the Quality Housing and Work Responsibility 
    Act of 1998; and
        ``(4) in the case of an agency receiving assistance pursuant to 
    the formulas under section 9, any amounts provided to the agency 
    which are attributable pursuant to the formulas for allocating such 
    assistance to such project or projects.
    ``(g) Removal by Secretary.--The Secretary shall take appropriate 
actions to ensure removal of any public housing project identified 
under subsection (a) from the inventory of a public housing agency, if 
the public housing agency fails to adequately develop a plan under 
subsection (c) with respect to that project, or fails to adequately 
implement such plan in accordance with the terms of the plan.
    ``(h) Administration.--
        ``(1) In general.--The Secretary may require a public housing 
    agency to provide to the Secretary or to public housing residents 
    such information as the Secretary considers to be necessary for the 
    administration of this section.
        ``(2) Applicability of section 18.--Section 18 shall not apply 
    to the demolition of public housing projects removed from the 
    inventory of the public housing agency under this section.''.
    (b) Conforming Amendment.--Section 202 of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note) is repealed.
    (c) Transition.--
        (1) Use of amounts.--Any amounts made available to a public 
    housing agency to carry out section 202 of the Departments of 
    Veterans Affairs and Housing and Urban Development, and Independent 
    Agencies Appropriations Act, 1996 (enacted as section 101(e) of the 
    Omnibus Consolidated Rescissions and Appropriations Act of 1996 
    (Public Law 104-134; 110 Stat. 1321-279)) may be used, to the 
    extent or in such amounts as are or have been provided in advance 
    in appropriation Acts, to carry out section 33 of the United States 
    Housing Act of 1937 (as added by subsection (a) of this section).
        (2) Savings provision.--Notwithstanding the amendments made by 
    this section, section 202 of the Departments of Veterans Affairs 
    and Housing and Urban Development, and Independent Agencies 
    Appropriations Act, 1996 (42 U.S.C. 14371 note) and any regulations 
    implementing such section, as in effect immediately before the 
    enactment of this Act, shall continue to apply to public housing 
    developments identified by the Secretary or a public housing agency 
    for conversion pursuant to that section or for assessment of 
    whether such conversion is required prior to enactment of this Act.

SEC. 538. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 34. SERVICES FOR PUBLIC HOUSING RESIDENTS.

    ``(a) In General.--To the extent that amounts are provided in 
advance in appropriations Acts, the Secretary may make grants to public 
housing agencies on behalf of public housing residents, or directly to 
resident management corporations, resident councils, or resident 
organizations (including nonprofit entities supported by residents), 
for the purposes of providing a program of supportive services and 
resident empowerment activities to provide supportive services to 
public housing residents or assist such residents in becoming 
economically self-sufficient.
    ``(b) Eligible Activities.--Grantees under this section may use 
such amounts only for activities on or near the property of the public 
housing agency or public housing project that are designed to promote 
the self-sufficiency of public housing residents or provide supportive 
services for such residents, including activities relating to--
        ``(1) physical improvements to a public housing project in 
    order to provide space for supportive services for residents;
        ``(2) the provision of service coordinators or a congregate 
    housing services program for elderly individuals, elderly disabled 
    individuals, nonelderly disabled individuals, or temporarily 
    disabled individuals;
        ``(3) the provision of services related to work readiness, 
    including education, job training and counseling, job search 
    skills, business development training and planning, tutoring, 
    mentoring, adult literacy, computer access, personal and family 
    counseling, health screening, work readiness health services, 
    transportation, and child care;
        ``(4) economic and job development, including employer linkages 
    and job placement, and the start-up of resident microenterprises, 
    community credit unions, and revolving loan funds, including the 
    licensing, bonding, and insurance needed to operate such 
    enterprises;
        ``(5) resident management activities and resident participation 
    activities; and
        ``(6) other activities designed to improve the economic self-
    sufficiency of residents.
    ``(c) Funding Distribution.--
        ``(1) In general.--Except for amounts provided under subsection 
    (d), the Secretary may distribute amounts made available under this 
    section on the basis of a competition or a formula, as appropriate.
        ``(2) Factors for distribution.--Factors for distribution under 
    paragraph (1) shall include--
            ``(A) the demonstrated capacity of the applicant to carry 
        out a program of supportive services or resident empowerment 
        activities;
            ``(B) the ability of the applicant to leverage additional 
        resources for the provision of services; and
            ``(C) the extent to which the grant will result in a high 
        quality program of supportive services or resident empowerment 
        activities.
    ``(d) Matching Requirement.--The Secretary may not make any grant 
under this section to any applicant unless the applicant supplements 
amounts made available under this section with funds from sources other 
than this section in an amount equal to not less than 25 percent of the 
grant amount. Such supplemental amounts may include--
        ``(1) funds from other Federal sources;
        ``(2) funds from any State or local government sources;
        ``(3) funds from private contributions; and
        ``(4) the value of any in-kind services or administrative costs 
    provided to the applicant.
    ``(e) Funding for Resident Organizations.--To the extent that there 
are a sufficient number of qualified applications for assistance under 
this section, not less than 25 percent of any amounts appropriated to 
carry out this section shall be provided directly to resident councils, 
resident organizations, and resident management corporations. In any 
case in which a resident council, resident organization, or resident 
management corporation lacks adequate expertise, the Secretary may 
require the council, organization, or corporation to utilize other 
qualified organizations as contract administrators with respect to 
financial assistance provided under this section.''.
    (b) Assessment and Report by Secretary.--Not later than 3 years 
after the date of the enactment of the Quality Housing and Work 
Responsibility Act of 1998, the Secretary of Housing and Urban 
Development shall--
        (1) conduct an evaluation and assessment of grants carried out 
    by resident organizations, and particularly of the effect of the 
    grants on living conditions in public housing; and
        (2) submit to the Congress a report setting forth the findings 
    of the Secretary as a result of the evaluation and assessment and 
    including any recommendations the Secretary determines to be 
    appropriate.
    This subsection shall take effect on the date of the enactment of 
this Act.

SEC. 539. MIXED-FINANCE PUBLIC HOUSING.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section:

``SEC. 35. MIXED FINANCE PUBLIC HOUSING.

    ``(a) Authority.--A public housing agency may own, operate, assist, 
or otherwise participate in 1 or more mixed-finance projects in 
accordance with this section.
    ``(b) Assistance.--
        ``(1) Forms.--A public housing agency may provide to a mixed-
    finance project assistance from the Operating Fund under section 9, 
    assistance from the Capital Fund under such section, or both forms 
    of assistance. A public housing agency may, in accordance with 
    regulations established by the Secretary, provide capital 
    assistance to a mixed-finance project in the form of a grant, loan, 
    guarantee, or other form of investment in the project, which may 
    involve drawdown of funds on a schedule commensurate with 
    construction draws for deposit into an interest-bearing escrow 
    account to serve as collateral or credit enhancement for bonds 
    issued by a public agency, or for other forms of public or private 
    borrowings, for the construction or rehabilitation of the 
    development.
        ``(2) Use.--To the extent deemed appropriate by the Secretary, 
    assistance used in connection with the costs associated with the 
    operation and management of mixed-finance projects may be used for 
    funding of an operating reserve to ensure affordability for low-
    income and very low-income families in lieu of the availability of 
    operating funds for public housing units in a mixed-finance 
    project.
    ``(c) Compliance With Public Housing Requirements.--The units 
assisted with capital or operating assistance in a mixed-finance 
project shall be developed, operated, and maintained in accordance with 
the requirements of this Act relating to public housing during the 
period required by under this Act, unless otherwise specified in this 
section. For purposes of this Act, any reference to public housing 
owned or operated by a public housing agency shall include dwelling 
units in a mixed finance project that are assisted by the agency with 
capital or operating assistance.
    ``(d) Mixed-Finance Projects.--
        ``(1) In general.--For purposes of this section, the term 
    `mixed-finance project' means a project that meets the requirements 
    of paragraph (2) and is financially assisted by private resources, 
    which may include low-income housing tax credits, in addition to 
    amounts provided under this Act.
        ``(2) Types of projects.--The term includes a project that is 
    developed--
            ``(A) by a public housing agency or by an entity affiliated 
        with a public housing agency;
            ``(B) by a partnership, a limited liability company, or 
        other entity in which the public housing agency (or an entity 
        affiliated with a public housing agency) is a general partner, 
        managing member, or otherwise participates in the activities of 
        that entity;
            ``(C) by any entity that grants to the public housing 
        agency the right of first refusal and first option to purchase, 
        after the close of the compliance period, of the qualified low-
        income building in which the public housing units exist in 
        accordance with section 42(i)(7) of the Internal Revenue Code 
        of 1986; or
            ``(D) in accordance with such other terms and conditions as 
        the Secretary may prescribe by regulation.
    ``(e) Structure of Projects.--Each mixed-finance project shall be 
developed--
        ``(1) in a manner that ensures that public housing units are 
    made available in the project, by regulatory and operating 
    agreement, master contract, individual lease, condominium or 
    cooperative agreement, or equity interest;
        ``(2) in a manner that ensures that the number of public 
    housing units bears approximately the same proportion to the total 
    number of units in the mixed-finance project as the value of the 
    total financial commitment provided by the public housing agency 
    bears to the value of the total financial commitment in the 
    project, or shall not be less than the number of units that could 
    have been developed under the conventional public housing program 
    with the assistance, or as may otherwise be approved by the 
    Secretary; and
        ``(3) in accordance with such other requirements as the 
    Secretary may prescribe by regulation.
    ``(f) Taxation.--
        ``(1) In general.--A public housing agency may elect to exempt 
    all public housing units in a mixed-finance project--
            ``(A) from the provisions of section 6(d), and instead 
        subject such units to local real estate taxes; and
            ``(B) from the finding of need and cooperative agreement 
        provisions under section 5(e)(1)(ii) and 5(e)(2), but only if 
        the development of the units is not inconsistent with the 
        jurisdiction's comprehensive housing affordability strategy.
        ``(2) Low-income housing tax credit.--With respect to any unit 
    in a mixed-finance project that is assisted pursuant to the low-
    income housing tax credit under section 42 of the Internal Revenue 
    Code of 1986, the rents charged to the residents may be set at 
    levels not to exceed the amounts allowable under that section, 
    provided that such levels for public housing residents do not 
    exceed the amounts allowable under section 3.
    ``(g) Use of Savings.--Notwithstanding any other provision of this 
Act, to the extent deemed appropriate by the Secretary, to facilitate 
the establishment of socioeconomically mixed communities, a public 
housing agency that uses assistance from the Capital Fund for a mixed-
finance project, to the extent that income from such a project reduces 
the amount of assistance used for operating or other costs relating to 
public housing, may use such resulting savings to rent privately 
developed dwelling units in the neighborhood of the mixed-finance 
project. Such units shall be made available for occupancy only by low-
income families eligible for residency in public housing.
    ``(h) Effect of Certain Contract Terms.--If an entity that owns or 
operates a mixed-finance project, that includes a significant number of 
units other than public housing units enters into a contract with a 
public housing agency, the terms of which obligate the entity to 
operate and maintain a specified number of units in the project as 
public housing units in accordance with the requirements of this Act 
for the period required by law, such contractual terms may provide 
that, if, as a result of a reduction in appropriations under section 9 
or any other change in applicable law, the public housing agency is 
unable to fulfill its contractual obligations with respect to those 
public housing units, that entity may deviate, under procedures and 
requirements developed through regulations by the Secretary, from 
otherwise applicable restrictions under this Act regarding rents, 
income eligibility, and other areas of public housing management with 
respect to a portion or all of those public housing units, to the 
extent necessary to preserve the viability of those units while 
maintaining the low-income character of the units to the maximum extent 
practicable.''.
    (b) Regulations.--The Secretary shall issue such regulations as may 
be necessary to promote the development of mixed-finance projects, as 
that term is defined in section 3(b) of the United States Housing Act 
of 1937 (as amended by this Act).

       Subtitle C--Section 8 Rental and Homeownership Assistance

SEC. 545. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.

    (a) In General.--Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended to read as follows:
    ``(o) Voucher Program.--
        ``(1) Authority.--
            ``(A) In general.--The Secretary may provide assistance to 
        public housing agencies for tenant-based assistance using a 
        payment standard established in accordance with subparagraph 
        (B). The payment standard shall be used to determine the 
        monthly assistance that may be paid for any family, as provided 
        in paragraph (2).
            ``(B) Establishment of payment standard.--Except as 
        provided under subparagraph (D), the payment standard for each 
        size of dwelling unit in a market area shall not exceed 110 
        percent of the fair market rental established under subsection 
        (c) for the same size of dwelling unit in the same market area 
        and shall be not less than 90 percent of that fair market 
        rental.
            ``(C) Set-aside.--The Secretary may set aside not more than 
        5 percent of the budget authority made available for assistance 
        under this subsection as an adjustment pool. The Secretary 
        shall use amounts in the adjustment pool to make adjusted 
        payments to public housing agencies under subparagraph (A), to 
        ensure continued affordability, if the Secretary determines 
        that additional assistance for such purpose is necessary, based 
        on documentation submitted by a public housing agency.
            ``(D) Approval.--The Secretary may require a public housing 
        agency to submit the payment standard of the public housing 
        agency to the Secretary for approval, if the payment standard 
        is less than 90 percent of the fair market rental or exceeds 
        110 percent of the fair market rental.
            ``(E) Review.--The Secretary--
                ``(i) shall monitor rent burdens and review any payment 
            standard that results in a significant percentage of the 
            families occupying units of any size paying more than 30 
            percent of adjusted income for rent; and
                ``(ii) may require a public housing agency to modify 
            the payment standard of the public housing agency based on 
            the results of that review.
        ``(2) Amount of monthly assistance payment.--Subject to the 
    requirement under section 3(a)(3) (relating to minimum rental 
    amount), the monthly assistance payment for a family receiving 
    assistance under this subsection shall be determined as follows:
            ``(A) Tenant-based assistance; rent not exceeding payment 
        standard.--For a family receiving tenant-based assistance, if 
        the rent for the family (including the amount allowed for 
        tenant-paid utilities) does not exceed the applicable payment 
        standard established under paragraph (1), the monthly 
        assistance payment for the family shall be equal to the amount 
        by which the rent (including the amount allowed for tenant-paid 
        utilities) exceeds the greatest of the following amounts, 
        rounded to the nearest dollar:
                ``(i) 30 percent of the monthly adjusted income of the 
            family.
                ``(ii) 10 percent of the monthly income of the family.
                ``(iii) If the family is receiving payments for welfare 
            assistance from a public agency and a part of those 
            payments, adjusted in accordance with the actual housing 
            costs of the family, is specifically designated by that 
            agency to meet the housing costs of the family, the portion 
            of those payments that is so designated.
            ``(B) Tenant-based assistance; rent exceeding payment 
        standard.--For a family receiving tenant-based assistance, if 
        the rent for the family (including the amount allowed for 
        tenant-paid utilities) exceeds the applicable payment standard 
        established under paragraph (1), the monthly assistance payment 
        for the family shall be equal to the amount by which the 
        applicable payment standard exceeds the greatest of amounts 
        under clauses (i), (ii), and (iii) of subparagraph (A).
            ``(C) Families receiving project-based assistance.--For a 
        family receiving project-based assistance, the rent that the 
        family is required to pay shall be determined in accordance 
        with section 3(a)(1), and the amount of the housing assistance 
        payment shall be determined in accordance with subsection 
        (c)(3) of this section.
        ``(3) 40 percent limit.--At the time a family initially 
    receives tenant-based assistance under this section with respect to 
    any dwelling unit, the total amount that a family may be required 
    to pay for rent may not exceed 40 percent of the monthly adjusted 
    income of the family.
        ``(4) Eligible families.--To be eligible to receive assistance 
    under this subsection, a family shall, at the time a family 
    initially receives assistance under this subsection, be a low-
    income family that is--
            ``(A) a very low-income family;
            ``(B) a family previously assisted under this title;
            ``(C) a low-income family that meets eligibility criteria 
        specified by the public housing agency;
            ``(D) a family that qualifies to receive a voucher in 
        connection with a homeownership program approved under title IV 
        of the Cranston-Gonzalez National Affordable Housing Act; or
            ``(E) a family that qualifies to receive a voucher under 
        section 223 or 226 of the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990.
        ``(5) Annual review of family income.--
            ``(A) In general.--Reviews of family incomes for purposes 
        of this section shall be subject to the provisions of section 
        904 of the Stewart B. McKinney Homeless Assistance Amendments 
        Act of 1988 and shall be conducted upon the initial provision 
        of housing assistance for the family and thereafter not less 
        than annually.
            ``(B) Procedures.--Each public housing agency administering 
        assistance under this subsection shall establish procedures 
        that are appropriate and necessary to ensure that income data 
        provided to the agency and owners by families applying for or 
        receiving assistance from the agency is complete and accurate. 
        Each public housing agency shall, not less frequently than 
        annually, conduct a review of the family income of each family 
        receiving assistance under this subsection.
        ``(6) Selection of families and disapproval of owners.--
            ``(A) Preferences.--
                ``(i) Authority to establish.--Each public housing 
            agency may establish a system for making tenant-based 
            assistance under this subsection available on behalf of 
            eligible families that provides preference for such 
            assistance to eligible families having certain 
            characteristics, which may include a preference for 
            families residing in public housing who are victims of a 
            crime of violence (as such term is defined in section 16 of 
            title 18, United States Code) that has been reported to an 
            appropriate law enforcement agency.
                ``(ii) Content.--Each system of preferences established 
            pursuant to this subparagraph shall be based upon local 
            housing needs and priorities, as determined by the public 
            housing agency using generally accepted data sources, 
            including any information obtained pursuant to an 
            opportunity for public comment as provided under section 
            5A(f) and under the requirements applicable to the 
            comprehensive housing affordability strategy for the 
            relevant jurisdiction.
            ``(B) Selection of tenants.--Each housing assistance 
        payment contract entered into by the public housing agency and 
        the owner of a dwelling unit) shall provide that the screening 
        and selection of families for those units shall be the function 
        of the owner. In addition, the public housing agency may elect 
        to screen applicants for the program in accordance with such 
        requirements as the Secretary may establish.
            ``(C) PHA disapproval of owners.--In addition to other 
        grounds authorized by the Secretary, a public housing agency 
        may elect not to enter into a housing assistance payments 
        contract under this subsection with an owner who refuses, or 
        has a history of refusing, to take action to terminate tenancy 
        for activity engaged in by the tenant, any member of the 
        tenant's household, any guest, or any other person under the 
        control of any member of the household that--
                ``(i) threatens the health or safety of, or right to 
            peaceful enjoyment of the premises by, other tenants or 
            employees of the public housing agency, owner, or other 
            manager of the housing;
                ``(ii) threatens the health or safety of, or right to 
            peaceful enjoyment of the residences by, persons residing 
            in the immediate vicinity of the premises; or
                ``(iii) is drug-related or violent criminal activity.
        ``(7) Leases and tenancy.--Each housing assistance payment 
    contract entered into by the public housing agency and the owner of 
    a dwelling unit--
            ``(A) shall provide that the lease between the tenant and 
        the owner shall be for a term of not less than 1 year, except 
        that the public housing agency may approve a shorter term for 
        an initial lease between the tenant and the dwelling unit owner 
        if the public housing agency determines that such shorter term 
        would improve housing opportunities for the tenant and if such 
        shorter term is considered to be a prevailing local market 
        practice;
            ``(B) shall provide that the dwelling unit owner shall 
        offer leases to tenants assisted under this subsection that--
                ``(i) are in a standard form used in the locality by 
            the dwelling unit owner; and
                ``(ii) contain terms and conditions that--

                    ``(I) are consistent with State and local law; and
                    ``(II) apply generally to tenants in the property 
                who are not assisted under this section;

            ``(C) shall provide that during the term of the lease, the 
        owner shall not terminate the tenancy except for serious or 
        repeated violation of the terms and conditions of the lease, 
        for violation of applicable Federal, State, or local law, or 
        for other good cause;
            ``(D) shall provide that during the term of the lease, any 
        criminal activity that threatens the health, safety, or right 
        to peaceful enjoyment of the premises by other tenants, any 
        criminal activity that threatens the health, safety, or right 
        to peaceful enjoyment of their residences by persons residing 
        in the immediate vicinity of the premises, or any violent or 
        drug-related criminal activity on or near such premises, 
        engaged in by a tenant of any unit, any member of the tenant's 
        household, or any guest or other person under the tenant's 
        control, shall be cause for termination of tenancy;
            ``(E) shall provide that any termination of tenancy under 
        this subsection shall be preceded by the provision of written 
        notice by the owner to the tenant specifying the grounds for 
        that action, and any relief shall be consistent with applicable 
        State and local law; and
            ``(F) may include any addenda required by the Secretary to 
        set forth the provisions of this subsection.
        ``(8) Inspection of units by pha's.--
            ``(A) In general.--Except as provided in paragraph (11), 
        for each dwelling unit for which a housing assistance payment 
        contract is established under this subsection, the public 
        housing agency shall inspect the unit before any assistance 
        payment is made to determine whether the dwelling unit meets 
        the housing quality standards under subparagraph (B).
            ``(B) Housing quality standards.--The housing quality 
        standards under this subparagraph are standards for safe and 
        habitable housing established--
                ``(i) by the Secretary for purposes of this subsection; 
            or
                ``(ii) by local housing codes or by codes adopted by 
            public housing agencies that--

                    ``(I) meet or exceed housing quality standards, 
                except that the Secretary may waive the requirement 
                under this subclause to significantly increase access 
                to affordable housing and to expand housing 
                opportunities for families assisted under this 
                subsection, except where such waiver could adversely 
                affect the health or safety of families assisted under 
                this subsection; and
                    ``(II) do not severely restrict housing choice

            ``(C) Inspection.--The determination required under 
        subparagraph (A) shall be made by the public housing agency (or 
        other entity, as provided in paragraph (11)) pursuant to an 
        inspection of the dwelling unit conducted before any assistance 
        payment is made for the unit. Inspections of dwelling units 
        under this subparagraph shall be made before the expiration of 
        the 15-day period beginning upon a request by the resident or 
        landlord to the public housing agency or, in the case of any 
        public housing agency that provides assistance under this 
        subsection on behalf of more than 1250 families, before the 
        expiration of a reasonable period beginning upon such request. 
        The performance of the agency in meeting the 15-day inspection 
        deadline shall be taken into consideration in assessing the 
        performance of the agency.
            ``(D) Annual inspections.--Each public housing agency 
        providing assistance under this subsection (or other entity, as 
        provided in paragraph (11)) shall make an annual inspection of 
        each assisted dwelling unit during the term of the housing 
        assistance payments contract for the unit to determine whether 
        the unit is maintained in accordance with the requirements 
        under subparagraph (A). The agency (or other entity) shall 
        retain the records of the inspection for a reasonable time and 
        shall make the records available upon request to the Secretary, 
        the Inspector General for the Department of Housing and Urban 
        Development, and any auditor conducting an audit under section 
        5(h).
            ``(E) Inspection guidelines.--The Secretary shall establish 
        procedural guidelines and performance standards to facilitate 
        inspections of dwelling units and conform such inspections with 
        practices utilized in the private housing market. Such 
        guidelines and standards shall take into consideration 
        variations in local laws and practices of public housing 
        agencies and shall provide flexibility to authorities 
        appropriate to facilitate efficient provision of assistance 
        under this subsection.
        ``(9) Vacated units.--If an assisted family vacates a dwelling 
    unit for which rental assistance is provided under a housing 
    assistance payment contract before the expiration of the term of 
    the lease for the unit, rental assistance pursuant to such contract 
    may not be provided for the unit after the month during which the 
    unit was vacated.
        ``(10) Rent.--
            ``(A) Reasonableness.--The rent for dwelling units for 
        which a housing assistance payment contract is established 
        under this subsection shall be reasonable in comparison with 
        rents charged for comparable dwelling units in the private, 
        unassisted local market.
            ``(B) Negotiations.--A public housing agency (or other 
        entity, as provided in paragraph (11)) shall, at the request of 
        a family receiving tenant-based assistance under this 
        subsection, assist that family in negotiating a reasonable rent 
        with a dwelling unit owner. A public housing agency (or such 
        other entity) shall review the rent for a unit under 
        consideration by the family (and all rent increases for units 
        under lease by the family) to determine whether the rent (or 
        rent increase) requested by the owner is reasonable. If a 
        public housing agency (or other such entity) determines that 
        the rent (or rent increase) for a dwelling unit is not 
        reasonable, the public housing agency (or other such entity) 
        shall not make housing assistance payments to the owner under 
        this subsection with respect to that unit.
            ``(C) Units exempt from local rent control.--If a dwelling 
        unit for which a housing assistance payment contract is 
        established under this subsection is exempt from local rent 
        control provisions during the term of that contract, the rent 
        for that unit shall be reasonable in comparison with other 
        units in the market area that are exempt from local rent 
        control provisions.
            ``(D) Timely payments.--Each public housing agency shall 
        make timely payment of any amounts due to a dwelling unit owner 
        under this subsection. The housing assistance payment contract 
        between the owner and the public housing agency may provide for 
        penalties for the late payment of amounts due under the 
        contract, which shall be imposed on the public housing agency 
        in accordance with generally accepted practices in the local 
        housing market.
            ``(E) Penalties.--Unless otherwise authorized by the 
        Secretary, each public housing agency shall pay any penalties 
        from administrative fees collected by the public housing 
        agency, except that no penalty shall be imposed if the late 
        payment is due to factors that the Secretary determines are 
        beyond the control of the public housing agency.
        ``(11) Leasing of units owned by pha.--If an eligible family 
    assisted under this subsection leases a dwelling unit (other than a 
    public housing dwelling unit) that is owned by a public housing 
    agency administering assistance under this subsection, the 
    Secretary shall require the unit of general local government or 
    another entity approved by the Secretary, to make inspections 
    required under paragraph (8) and rent determinations required under 
    paragraph (10). The agency shall be responsible for any expenses of 
    such inspections and determinations.
        ``(12) Assistance for rental of manufactured housing.--
            ``(A) In general.--A public housing agency may make 
        assistance payments in accordance with this subsection on 
        behalf of a family that utilizes a manufactured home as a 
        principal place of residence. Such payments may be made only 
        for the rental of the real property on which the manufactured 
        home owned by any such family is located.
            ``(B) Rent calculation.--
                ``(i) Charges included.--For assistance pursuant to 
            this paragraph, the rent for the space on which a 
            manufactured home is located and with respect to which 
            assistance payments are to be made shall include 
            maintenance and management charges and tenant-paid 
            utilities.
                ``(ii) Payment standard.--The public housing agency 
            shall establish a payment standard for the purpose of 
            determining the monthly assistance that may be paid for any 
            family under this paragraph. The payment standard may not 
            exceed an amount approved or established by the Secretary.
                ``(iii) Monthly assistance payment.--The monthly 
            assistance payment for a family assisted under this 
            paragraph shall be determined in accordance with paragraph 
            (2).
        ``(13) PHA project-based assistance.--
            ``(A) In general.--If the Secretary enters into an annual 
        contributions contract under this subsection with a public 
        housing agency pursuant to which the public housing agency will 
        enter into a housing assistance payment contract with respect 
        to an existing structure under this subsection--
                ``(i) the housing assistance payment contract may not 
            be attached to the structure unless the owner agrees to 
            rehabilitate or newly construct the structure other than 
            with assistance under this Act, and otherwise complies with 
            this section; and
                ``(ii) the public housing agency may approve a housing 
            assistance payment contract for such existing structures 
            for not more than 15 percent of the funding available for 
            tenant-based assistance administered by the public housing 
            agency under this section.
            ``(B) Extension of contract term.--In the case of a housing 
        assistance payment contract that applies to a structure under 
        this paragraph, a public housing agency may enter into a 
        contract with the owner, contingent upon the future 
        availability of appropriated funds for the purpose of renewing 
        expiring contracts for assistance payments, as provided in 
        appropriations Acts, to extend the term of the underlying 
        housing assistance payment contract for such period as the 
        Secretary determines to be appropriate to achieve long-term 
        affordability of the housing. The contract shall obligate the 
        owner to have such extensions of the underlying housing 
        assistance payment contract accepted by the owner and the 
        successors in interest of the owner.
            ``(C) Rent calculation.--For project-based assistance under 
        this paragraph, housing assistance payment contracts shall 
        establish rents and provide for rent adjustments in accordance 
        with subsection (c).
            ``(D) Adjusted rents.--With respect to rents adjusted under 
        this paragraph--
                ``(i) the adjusted rent for any unit shall be 
            reasonable in comparison with rents charged for comparable 
            dwelling units in the private, unassisted, local market; 
            and
                ``(ii) the provisions of subsection (c)(2)(C) shall not 
            apply.
        ``(14) Inapplicability to tenant-based assistance.--Subsection 
    (c) shall not apply to tenant-based assistance under this 
    subsection.
        ``(15) Homeownership option.--
            ``(A) In general.--A public housing agency providing 
        assistance under this subsection may, at the option of the 
        agency, provide assistance for homeownership under subsection 
        (y).
            ``(B) Alternative administration.--A public housing agency 
        may contract with a nonprofit organization to administer a 
        homeownership program under subsection (y).
        ``(16) Rental vouchers for relocation of witnesses and victims 
    of crime.--
            ``(A) Witnesses.--Of amounts made available for assistance 
        under this subsection in each fiscal year, the Secretary, in 
        consultation with the Inspector General, shall make available 
        such sums as may be necessary for the relocation of witnesses 
        in connection with efforts to combat crime in public and 
        assisted housing pursuant to requests from law enforcement or 
        prosecution agencies.
            ``(B) Victims of crime.--
                ``(i) In general.--Of amounts made available for 
            assistance under this section in each fiscal year, the 
            Secretary shall make available such sums as may be 
            necessary for the relocation of families residing in public 
            housing who are victims of a crime of violence (as that 
            term is defined in section 16 of title 18, United States 
            Code) that has been reported to an appropriate law 
            enforcement agency.
                ``(ii) Notice.--A public housing agency that receives 
            amounts under this subparagraph shall establish procedures 
            for providing notice of the availability of that assistance 
            to families that may be eligible for that assistance.
        ``(17) Deed restrictions.--Assistance under this subsection may 
    not be used in any manner that abrogates any local deed restriction 
    that applies to any housing consisting of 1 to 4 dwelling units. 
    This paragraph may not be construed to affect the provisions or 
    applicability of the Fair Housing Act.''.
    (b) Conforming Amendment.--Section 8(f)(6) of the United States 
Housing Act (42 U.S.C. 1437f(f)(6)) is amended by inserting ``or 
(o)(13)'' after ``(d)(2)''.
    (c) Applicability.--Notwithstanding the amendment made by 
subsection (a) of this section, any amendments to section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) that are 
contained in title II of this Act shall apply with respect to the 
provision of assistance under such section during the period before 
implementation (pursuant to section 559 of this title) of such section 
8(o) as amended by subsection (a) of this section.

SEC. 546. PUBLIC HOUSING AGENCIES.

    Section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(b)(6)) is amended to read as follows:
    ``(6) Public housing agency.--
        ``(A) In general.--Except as provided in subparagraph (B), the 
    term `public housing agency' means any State, county, municipality, 
    or other governmental entity or public body (or agency or 
    instrumentality thereof) which is authorized to engage in or assist 
    in the development or operation of public housing.
        ``(B) Section 8 program.--For purposes of the program for 
    tenant-based assistance under section 8, such term includes--
            ``(i) a consortia of public housing agencies that the 
        Secretary determines has the capacity and capability to 
        administer a program for assistance under such section in an 
        efficient manner;
            ``(ii) any other public or private nonprofit entity that, 
        upon the effective date under section 503(a) of the Quality 
        Housing and Work Responsibility Act of 1998, was administering 
        any program for tenant-based assistance under section 8 of this 
        Act (as in effect before the effective date of such Act), 
        pursuant to a contract with the Secretary or a public housing 
        agency; and
            ``(iii) with respect to any area in which no public housing 
        agency has been organized or where the Secretary determines 
        that a public housing agency is unwilling or unable to 
        implement a program for tenant-based assistance section 8, or 
        is not performing effectively--
                ``(I) the Secretary or another public or private 
            nonprofit entity that by contract agrees to receive 
            assistance amounts under section 8 and enter into housing 
            assistance payments contracts with owners and perform the 
            other functions of public housing agency under section 8; 
            or
                ``(II) notwithstanding any provision of State or local 
            law, a public housing agency for another area that 
            contracts with the Secretary to administer a program for 
            housing assistance under section 8, without regard to any 
            otherwise applicable limitations on its area of 
            operation.''.

SEC. 547. ADMINISTRATIVE FEES.

    Subsection (q) of section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f(q)) is amended to read as follows:
    ``(q) Administrative Fees.--
        ``(1) Fee for ongoing costs of administration.--
            ``(A) In general.--The Secretary shall establish fees for 
        the costs of administering the tenant-based assistance, 
        certificate, voucher, and moderate rehabilitation programs 
        under this section.
            ``(B) Fiscal year 1999.--
                ``(i) Calculation.--For fiscal year 1999, the fee for 
            each month for which a dwelling unit is covered by an 
            assistance contract shall be--

                    ``(I) in the case of a public housing agency that, 
                on an annual basis, is administering a program for not 
                more than 600 dwelling units, 7.65 percent of the base 
                amount; and
                    ``(II) in the case of an agency that, on an annual 
                basis, is administering a program for more than 600 
                dwelling units (aa) for the first 600 units, 7.65 
                percent of the base amount, and (bb) for any additional 
                dwelling units under the program, 7.0 percent of the 
                base amount.

                ``(ii) Base amount.--For purposes of this subparagraph, 
            the base amount shall be the higher of--

                    ``(I) the fair market rental established under 
                section 8(c) of this Act (as in effect immediately 
                before the effective date under section 503(a) of the 
                Quality Housing and Work Responsibility Act of 1998) 
                for fiscal year 1993 for a 2-bedroom existing rental 
                dwelling unit in the market area of the agency, and
                    ``(II) the amount that is the lesser of (aa) such 
                fair market rental for fiscal year 1994, or (bb) 103.5 
                percent of the amount determined under clause (i),

            adjusted based on changes in wage data or other objectively 
            measurable data that reflect the costs of administering the 
            program, as determined by the Secretary. The Secretary may 
            require that the base amount be not less than a minimum 
            amount and not more than a maximum amount.
            ``(C) Subsequent fiscal years.--For subsequent fiscal 
        years, the Secretary shall publish a notice in the Federal 
        Register, for each geographic area, establishing the amount of 
        the fee that would apply for public housing agencies 
        administering the program, based on changes in wage data or 
        other objectively measurable data that reflect the costs of 
        administering the program, as determined by the Secretary.
            ``(D) Increase.--The Secretary may increase the fee if 
        necessary to reflect the higher costs of administering small 
        programs and programs operating over large geographic areas.
            ``(E) Decrease.--The Secretary may decrease the fee for 
        units owned by a public housing agency to reflect reasonable 
        costs of administration.
        ``(2) Fee for preliminary expenses.--The Secretary shall also 
    establish reasonable fees (as determined by the Secretary) for--
            ``(A) the costs of preliminary expenses, in the amount of 
        $500, for a public housing agency, except that such fee shall 
        apply to an agency only in the first year that the agency 
        administers a tenant-based assistance program under this 
        section, and only if, immediately before the effective date 
        under section 503(a) of the Quality Housing and Work 
        Responsibility Act of 1998, the agency was not administering a 
        tenant-based assistance program under the United States Housing 
        Act of 1937 (as in effect immediately before such effective 
        date), in connection with its initial increment of assistance 
        received;
            ``(B) the costs incurred in assisting families who 
        experience difficulty (as determined by the Secretary) in 
        obtaining appropriate housing under the programs; and
            ``(C) extraordinary costs approved by the Secretary.
        ``(3) Transfer of fees in cases of concurrent geographical 
    jurisdiction.--In each fiscal year, if any public housing agency 
    provides tenant-based assistance under this section on behalf of a 
    family who uses such assistance for a dwelling unit that is located 
    within the jurisdiction of such agency but is also within the 
    jurisdiction of another public housing agency, the Secretary shall 
    take such steps as may be necessary to ensure that the public 
    housing agency that provides the services for a family receives all 
    or part of the administrative fee under this section (as 
    appropriate).
        ``(4) Applicability.--This subsection shall apply to fiscal 
    year 1999 and fiscal years thereafter.''.

SEC. 548. LAW ENFORCEMENT AND SECURITY PERSONNEL IN ASSISTED HOUSING.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended--
        (1) by transferring and inserting subsection (z) after 
    subsection (y) (and before subsection (aa)); and
        (2) by adding at the end the following new subsection:
    ``(cc) Law Enforcement and Security Personnel.--
        ``(1) In general.--Notwithstanding any other provision of this 
    Act, in the case of assistance attached to a structure, for the 
    purpose of increasing security for the residents of a project, an 
    owner may admit, and assistance under this section may be provided 
    to, police officers and other security personnel who are not 
    otherwise eligible for assistance under the Act.
        ``(2) Rent requirements.--With respect to any assistance 
    provided by an owner under this subsection, the Secretary may--
            ``(A) permit the owner to establish such rent requirements 
        and other terms and conditions of occupancy that the Secretary 
        considers to be appropriate; and
            ``(B) require the owner to submit an application for those 
        rent requirements, which application shall include such 
        information as the Secretary, in the discretion of the 
        Secretary, determines to be necessary.
        ``(3) Applicability.--This subsection shall apply to fiscal 
    year 1999 and fiscal years thereafter.''.

SEC. 549. ADVANCE NOTICE TO TENANTS OF EXPIRATION, TERMINATION, OR 
              OWNER NONRENEWAL OF ASSISTANCE CONTRACT.

    (a) Permanent Applicability of Notice and Endless Lease 
Provisions.--
        (1) Notice.--Section 8(c) of the United States Housing Act of 
    1937 (42 U.S.C. 1437f(c)) is amended--
            (A) by striking paragraphs (8) and (10); and
            (B) in paragraph (9), by striking the first sentence and 
        inserting the following new sentence: `` Not less than one year 
        before terminating any contract under which assistance payments 
        are received under this section, other than a contract for 
        tenant-based assistance under this section, an owner shall 
        provide written notice to the Secretary and the tenants 
        involved of the proposed termination, specifying the reasons 
        for the termination with sufficient detail to enable the 
        Secretary to evaluate whether the termination is lawful and 
        whether there are additional actions that can be taken by the 
        Secretary to avoid the termination.''.
        (2) Endless Lease.--Section 8(d)(1)(B) of the United States 
    Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(B)) is amended--
            (A) in clause (ii) by striking ``(ii)'' and all that 
        follows through ''the owner'' and inserting ``(ii) during the 
        term of the lease, the owner''; and
            (B) in clause (iii), by striking ``(iii)'' and all that 
        follows through ``any criminal activity'' the first place it 
        appears and inserting ``(iii) during the term of the lease, any 
        criminal activity''.
        (3) Permanent effectiveness of amendments.--The amendments 
    under this subsection are made on, and shall apply beginning upon, 
    the date of the enactment of this Act, and shall apply thereafter, 
    notwithstanding section 203 of the Departments of Veterans Affairs 
    and Housing and Urban Development, and Independent Agencies 
    Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other 
    provision of law (including the expiration of the applicability of 
    such section 203 or any repeal of such section 203).
    (b) Exemption of Tenant-Based Assistance From Contract 
Provisions.--Paragraph (9) of section 8(c) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(c)(9)), as amended by subsection (a)(1) of 
this section, is further amended--
        (1) by striking ``(9)'' and inserting ``(8)(A)''; and
        (2) by striking the third sentence and all that follows and 
    inserting the following:
    ``(B) In the case of owner who has requested that the Secretary 
renew the contract, the owner's notice under subparagraph (A) to the 
tenants shall include statements that--
        ``(i) the owner currently has a contract with the Department of 
    Housing and Urban Development that pays the Government's share of 
    the tenant's rent and the date on which the contract will expire;
        ``(ii) the owner intends to renew the contract for another 
    year;
        ``(iii) renewal of the contract may depend upon the Congress 
    making funds available for such renewal;
        ``(iv) the owner is required by law to notify tenants of the 
    possibility that the contract may not be renewed if Congress does 
    not provide funding for such renewals;
        ``(v) in the event of nonrenewal, the Department of Housing and 
    Urban Development will provide tenant-based rental assistance to 
    all eligible residents, enabling them to choose the place they wish 
    to rent; and
        ``(vi) the notice itself does not indicate an intent to 
    terminate the contract by either the owner or the Department of 
    Housing and Urban Development, provided there is Congressional 
    approval of funding availability.
    ``(C) Notwithstanding the preceding provisions of this paragraph, 
if the owner agrees to a 5-year contract renewal offered by the 
Secretary, payments under which shall be subject to the availability of 
appropriations for any year, the owner shall provide a written notice 
to the Secretary and the tenants not less than 180 days before the 
termination of such contract. In the event the owner does not provide 
the 180-day notice required in the immediately preceding sentence, the 
owner may not evict the tenants or increase the tenants' rent payment 
until such time as the owner has provided the 180-day notice and such 
period has elapsed. The Secretary may allow the owner to renew the 
terminating contract for a period of time sufficient to give tenants 
180 days of advance notice under such terms and conditions as the 
Secretary may require.
    ``(D) Any notice under this paragraph shall also comply with any 
additional requirements established by the Secretary.
    ``(E) For purposes of this paragraph, the term `termination' means 
the expiration of the assistance contract or an owner's refusal to 
renew the assistance contract, and such term shall include termination 
of the contract for business reasons.''.
    (c) Multifamily Assisted Housing Reform and Affordability Act of 
1997.--Section 514(d) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by 
inserting at the end the following new sentences: `In addition, if 
after giving the notice required in the first sentence, an owner 
determines to terminate a contract, an owner shall provide an 
additional written notice with respect to the termination, in a form 
prescribed by the Secretary, not less than 120 days prior to the 
termination. In the event the owner does not provide the 120-day notice 
required in the preceding sentence, the owner may not evict the tenants 
or increase the tenants' rent payment until such time as the owner has 
provided the 120-day notice and such period has elapsed. The Secretary 
may allow the owner to renew the terminating contract for a period of 
time sufficient to give tenants 120 days of advance notice in 
accordance with section 524 of this Act.''.

SEC. 550. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Lower Income Housing Assistance.--Section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) is amended--
        (1) in subsection (a), by striking the second and third 
    sentences;
        (2) in subsection (b)--
            (A) in the subsection heading, by striking ``Rental 
        Certificates and''; and
            (B) in the first undesignated paragraph--
                (i) by striking ``The Secretary'' and inserting the 
            following:
        ``(1) In general.--The Secretary''; and
                (ii) by striking the second sentence;
        (3) in subsection (c)--
            (A) in paragraph (3)--
                (i) by striking ``(A)''; and
                (ii) by striking subparagraph (B);
            (B) in the first sentence of paragraph (4), by striking 
        ``or by a family that qualifies to receive'' and all that 
        follows through ``1990'';
            (C) by striking paragraphs (5) and (7); and
            (D) redesignating paragraph (6) as paragraph (5);
        (4) in subsection (d)(2)--
            (A) in subparagraph (A), by striking the third sentence and 
        all that follows through the end of the subparagraph;
            (B) in subparagraph (H), by striking ``(H)'' and all that 
        follows through ``owner'' and inserting ``(H) An owner''; and
            (C) by striking subparagraphs (B) through (E) and 
        redesignating subparagraphs (F) through (H) (as amended by 
        subparagraph (B) of this paragraph) as subparagraphs (B) 
        through (D), respectively;
        (5) in subsection (f)(7)--
            (A) by striking ``(b) or''; and
            (B) by inserting before the period the following: ``and 
        that provides for the eligible family to select suitable 
        housing and to move to other suitable housing''; and
        (6) by striking subsection (j);
        (7) by striking subsection (n);
        (8) in subsection (u)--
            (A) in paragraph (2), by striking ``, certificates''; and
            (B) by striking ``certificates or'' each place that term 
        appears; and
        (9) in subsection (x)(2), by striking ``housing certificate 
    assistance'' and inserting ``tenant-based assistance''.
    (b) HOPWA Grants for Community Residences and Services.--Section 
861(b)(1)(D) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12910(b)(1)(D)) is amended by striking ``certificates or 
vouchers'' and inserting ``assistance''.
    (c) Section 8 Certificates and Vouchers.--Section 931 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437c 
note) is amended by striking ``assistance under the certificate and 
voucher programs under sections 8(b) and (o) of such Act'' and 
inserting ``tenant-based assistance under section 8 of the United 
States Housing Act of 1937''.
    (d) Assistance for Displaced Residents.--Section 223(a) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 4113(a)) is 
amended by striking ``assistance under the certificate and voucher 
programs under sections 8(b) and 8(o)'' and inserting ``tenant-based 
assistance under section 8''.
    (e) Rural Housing Preservation Grants.--Section 533(a) of the 
Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the second 
sentence by striking ``assistance payments as provided by section 
8(o)'' and inserting ``tenant-based assistance as provided under 
section 8''.
    (f) Repeal of Moving to Opportunities for Fair Housing 
Demonstration.--Section 152 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 1437f note) is repealed.
    (g) Assistance for Troubled Multifamily Housing Projects.--Section 
201(m)(2)(A) of the Housing and Community Development Amendments of 
1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended by striking ``section 
8(b)(1)'' and inserting ``section 8''.

SEC. 551. FUNDING AND ALLOCATION.

    Section 213 of the Housing and Community Development Act of 1974 
(42 U.S.C. 1439) is amended--
        (1) by striking subsection (c); and
        (2) in subsection (d)--
            (A) in paragraph (1)(A)--
                (i) in clause (i), by adding at the end the following 
            new sentence: ``Amounts for tenant-based assistance under 
            section 8(o) of the United States Housing Act of 1937 may 
            not be provided to any public housing agency that has been 
            disqualified from providing such assistance.''; and
                (ii) in clause (ii), by striking ``8(b)(1)'' each place 
            it appears and inserting ``8(o)'';
            (B) by striking paragraph (2); and
            (C) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively.

SEC. 552. TREATMENT OF COMMON AREAS.

    Section 8(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new paragraph:
    ``(6) Treatment of common areas.--The Secretary may not provide any 
assistance amounts pursuant to an existing contract for project-based 
assistance under this section for a housing project and may not enter 
into a new or renewal contract for such assistance for a project unless 
the owner of the project provides consent, to such local law 
enforcement agencies as the Secretary determines appropriate, for law 
enforcement officers of such agencies to enter common areas of the 
project at any time and without advance notice upon a determination of 
probable cause by such officers that criminal activity is taking place 
in such areas.''.

SEC. 553. PORTABILITY.

    Section 8(r) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(r)) is amended--
        (1) in paragraph (2), by striking the last sentence;
        (2) in paragraph (3))--
            (A) by striking ``(b) or''; and
            (B) by adding at the end the following: ``The Secretary 
        shall establish procedures for the compensation of public 
        housing agencies that issue vouchers to families that move into 
        or out of the jurisdiction of the public housing agency under 
        portability procedures. The Secretary may reserve amounts 
        available for assistance under subsection (o) to compensate 
        those public housing agencies.'';
        (3) by striking ``(r)'' and all that follows through the end of 
    paragraph (1) and inserting the following:
    ``(r) Portability.--(1) In general.--(A) Any family receiving 
tenant-based assistance under subsection (o) may receive such 
assistance to rent an eligible dwelling unit if the dwelling unit to 
which the family moves is within any area in which a program is being 
administered under this section.
    ``(B)(i) Notwithstanding subparagraph (A) and subject to any 
exceptions established under clause (ii) of this subparagraph, a public 
housing agency may require that any family not living within the 
jurisdiction of the public housing agency at the time the family 
applies for assistance from the agency shall, during the 12-month 
period beginning on the date of initial receipt of housing assistance 
made available on behalf of the family from such agency, lease and 
occupy an eligible dwelling unit located within the jurisdiction served 
by the agency.
    ``(ii) The Secretary may establish such exceptions to the authority 
of public housing agencies established under clause (i).''; and
        (5) by adding at the end the following new paragraph:
    ``(5) Lease violations.--A family may not receive a voucher from a 
public housing agency and move to another jurisdiction under the 
tenant-based assistance program if the family has moved out of the 
assisted dwelling unit of the family in violation of a lease.''.

SEC. 554. LEASING TO VOUCHER HOLDERS.

    Notwithstanding section 203(d) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 
104-134; 42 U.S.C. 1437f note)), section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f) is amended by striking subsection (t). 
This section shall apply beginning upon, and the amendment made by this 
section is made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 555. HOMEOWNERSHIP OPTION.

    (a) In general.--Section 8(y) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)) is amended--
        (1) in paragraph (1)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``A family receiving'' and all that follows through ``if the 
        family'' and inserting the following: ``A public housing agency 
        providing tenant-based assistance on behalf of an eligible 
        family under this section may provide assistance for an 
        eligible family that purchases a dwelling unit (including a 
        unit under a lease-purchase agreement) that will be owned by 1 
        or more members of the family, and will be occupied by the 
        family, if the family'';
            (B) in subparagraph (A), by inserting before the semicolon 
        ``, or owns or is acquiring shares in a cooperative''; and
            (C) in subparagraph (B)--
                (i) by striking ``(i) participates'' and all that 
            follows through ``(ii) demonstrates'' and inserting 
            ``demonstrates''; and
                (ii) by inserting ``, except that the Secretary may 
            provide for the consideration of public assistance in the 
            case of an elderly family or a disabled family'' after 
            ``other than public assistance'';
        (2) by striking paragraph (2) and inserting the following new 
    paragraph:
        ``(2) Determination of amount of assistance.--
            ``(A) Monthly expenses not exceeding payment standard.--If 
        the monthly homeownership expenses, as determined in accordance 
        with requirements established by the Secretary, do not exceed 
        the payment standard, the monthly assistance payment shall be 
        the amount by which the homeownership expenses exceed the 
        highest of the following amounts, rounded to the nearest 
        dollar:
                ``(i) 30 percent of the monthly adjusted income of the 
            family.
                ``(ii) 10 percent of the monthly income of the family.
                ``(iii) If the family is receiving payments for welfare 
            assistance from a public agency, and a portion of those 
            payments, adjusted in accordance with the actual housing 
            costs of the family, is specifically designated by that 
            agency to meet the housing costs of the family, the portion 
            of those payments that is so designated.
            ``(B) Monthly expenses exceed payment standard.--If the 
        monthly homeownership expenses, as determined in accordance 
        with requirements established by the Secretary, exceed the 
        payment standard, the monthly assistance payment shall be the 
        amount by which the applicable payment standard exceeds the 
        highest of the amounts under clauses (i), (ii), and (iii) of 
        subparagraph (A).'';
        (3) by striking paragraphs (3), (4), and (5) and inserting the 
    following new paragraphs:
        ``(3) Inspections and contract conditions.--
            ``(A) In general.--Each contract for the purchase of a unit 
        to be assisted under this section shall--
                ``(i) provide for pre-purchase inspection of the unit 
            by an independent professional; and
                ``(ii) require that any cost of necessary repairs be 
            paid by the seller.
            ``(B) Annual inspections not required.--The requirement 
        under subsection (o)(8)(A)(ii) for annual inspections shall not 
        apply to units assisted under this section.
        ``(4) Other authority of the secretary.--The Secretary may--
            ``(A) limit the term of assistance for a family assisted 
        under this subsection; and
            ``(B) modify the requirements of this subsection as the 
        Secretary determines to be necessary to make appropriate 
        adaptations for lease-purchase agreements.''; and
        (4) by redesignating paragraphs (6), (7) (as previously amended 
    by this Act), and (8) as paragraphs (5), (6), and (7), 
    respectively.
    (b) Demonstration Program.--
        (1) In general.--With the consent of the affected public 
    housing agencies, the Secretary may carry out (or contract with 1 
    or more entities to carry out) a demonstration program under 
    section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
    1437f(y)) to expand homeownership opportunities for low-income 
    families.
        (2) Report.--The Secretary shall report annually to Congress on 
    activities conducted under this subsection.
    (c) Applicability.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 556. RENEWALS.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new subsection:
    ``(dd) Tenant-Based Contract Renewals.--Subject to amounts provided 
in appropriation Acts, starting in fiscal year 1999, the Secretary 
shall renew all expiring tenant-based annual contribution contracts 
under this section by applying an inflation factor based on local or 
regional factors to an allocation baseline. The allocation baseline 
shall be calculated by including, at a minimum, amounts sufficient to 
ensure continued assistance for the actual number of families assisted 
as of October 1, 1997, with appropriate upward adjustments for 
incremental assistance and additional families authorized subsequent to 
that date.''.
    (b) Implementation.--The Secretary of Housing and Urban Development 
shall implement the provision added by the amendment made by subsection 
(a) through notice, not later than December 31, 1998, and shall issue 
final regulations which shall be developed pursuant to the procedures 
for issuance of regulations under the negotiated rulemaking procedure 
under subchapter III of chapter 5 of title 5, United States Code, not 
later than one year after the date of the enactment of this Act.

SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a program during fiscal years 1999, 2000, and 2001 to 
demonstrate the effectiveness of providing, directly to eligible 
families that own manufactured homes and rent real property on which 
their homes are located, tenant-based assistance for the rental of such 
property that would otherwise be provided directly to the owners of 
such real property under section 8(o)(12) of the United States Housing 
Act of 1937.
    (b) Requirements.--The demonstration program under this section 
shall be subject to the following requirements:
        (1) Scope.--The Secretary of Housing and Urban Development 
    shall carry out the demonstration program with respect to the 
    Housing Authority of the County of San Diego, in California, and 
    the Housing Authority of the City of San Diego, in California.
        (2) Eligible families.--Under the demonstration program, each 
    public housing agency shall provide tenant-based assistance under 
    section 8(o) of the United States Housing Act of 1937 on behalf of 
    eligible families who rent real property on which their 
    manufactured homes are located and which is owned by an owner who 
    has refused to participate in the section 8 program.
        (3) Participation arrangements.--Each public housing agency 
    participating in the demonstration program shall enter into 
    arrangements with families assisted under the program providing for 
    their participation in the program and may, to the extent 
    authorized by the Secretary, continue to provide assistance in the 
    same manner as under the demonstration program after its conclusion 
    to such participating families.
        (4) Waiver of other requirements.--Under the demonstration 
    program, the Secretary may waive, or specify alternative 
    requirements for, requirements established by or under section 8 of 
    the United States Housing Act of 1937 relating to the provision of 
    assistance under subsection (j) or (o)(12) of such section.
    (c) Report.--Not later than March 31, 2002, the Secretary shall 
submit a report to the Congress describing and evaluating the 
demonstration program under this section.
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 558. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated for 
providing public housing agencies with tenant-based housing assistance 
under section 8 of the United States Housing Act of 1937--
        (1) to provide amounts for incremental assistance under such 
    section 8--
            (A) for each of fiscal years 2000 and 2001, the amount 
        necessary to assist 100,000 incremental dwelling units in each 
        such fiscal year; and
            (B) for each of fiscal years 1999, 2002, and 2003, such 
        sums as may be necessary; and
        (2) such sums as may be necessary for each of fiscal years 
    1999, 2000, 2001, 2002, and 2003, for--
            (A) relocation and replacement housing for units that are 
        demolished and disposed of from the public housing inventory 
        (in addition to other amounts that may be available for such 
        purposes);
            (B) relocation of residents of properties that are owned by 
        the Secretary and being disposed of or that are discontinuing 
        section 8 project-based assistance;
            (C) the conversion of section 23 projects to assistance 
        under section 8;
            (D) carrying out the family unification program;
            (E) 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;
            (F) nonelderly disabled families affected by the 
        designation of a public housing development under section 7 of 
        the United States Housing Act of 1937, the establishment of 
        preferences in accordance with section 651 of the Housing and 
        Community Development Act of 1992, 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;
            (G) housing vouchers for homeless individuals; and
            (H) housing vouchers to compensate public housing agencies 
        which issue vouchers to families that move into or out of the 
        jurisdiction of the agency under portability procedures.
    (b) Assistance for Disabled Families.--
        (1) Authorization of appropriations.--There is authorized to be 
    appropriated, for tenant-based assistance under section 8 of the 
    United States Housing Act of 1937, to be used in accordance with 
    paragraph (2), $50,000,000 for fiscal year 2000, and such sums as 
    may be necessary for each subsequent fiscal year.
        (2) Use.--The Secretary shall provide amounts made available 
    under paragraph (1) to public housing agencies only for use to 
    provide tenant-based assistance under section 8 of the United 
    States Housing Act of 1937 for nonelderly disabled families 
    (including such families relocating pursuant to designation of a 
    public housing development under 7 of such Act or to the 
    establishment of occupancy restrictions in accordance with section 
    658 of the Housing and Community Development Act of 1992, and other 
    nonelderly disabled families who have applied to the agency for 
    assistance under such section 8).
        (3) Allocation of amounts.--The Secretary shall allocate and 
    provide amounts made available under paragraph (1) to public 
    housing agencies as the Secretary determines appropriate based on 
    the relative levels of need among the authorities for assistance 
    for families described in paragraph (1).
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 559. RULEMAKING AND IMPLEMENTATION.

    (a) Interim Regulations.--The Secretary of Housing and Urban 
Development shall issue such interim regulations as may be necessary to 
implement the amendments made by this subtitle and other provisions in 
this title which relate to section 8(o) of the United States Housing 
Act of 1937.
    (b) Final Regulations.--The Secretary shall issue final regulations 
necessary to implement the amendments made by this subtitle and other 
provisions in this title which relate to section 8(o) of the United 
States Housing Act of 1937 not later then 1 year after the date of the 
enactment of this Act.
    (c) Factors For Consideration.--Before the publication of the final 
regulations under subsection (b), in addition to public comments 
invited in connection with the publication of the interim rule, the 
Secretary shall--
        (1) seek recommendations on the implementation of sections 
    8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the United States 
    Housing Act of 1937 and of renewals of expiring tenant-based 
    assistance from organizations representing--
            (A) State or local public housing agencies;
            (B) owners and managers of tenant-based housing assisted 
        under section 8 of the United States Housing Act of 1937;
            (C) families receiving tenant-based assistance under 
        section 8 of the United States Housing Act of 1937; and
            (D) legal service organizations; and
        (2) convene not less than 2 public forums at which the persons 
    or organizations making recommendations under paragraph (1) may 
    express views concerning the proposed disposition of the 
    recommendations.
    (d) Conversion Assistance.--
        (1) In general.--The Secretary may provide for the conversion 
    of assistance under the certificate and voucher programs under 
    subsections (b) and (o) of section 8 of the United States Housing 
    Act of 1937, as in effect before the applicability of the 
    amendments made by this subtitle, to the voucher program 
    established by the amendments made by this subtitle.
        (2) Continued applicability.--The Secretary may apply the 
    provisions of the United States Housing Act of 1937, or any other 
    provision of law amended by this subtitle, as those provisions were 
    in effect immediately before the date of the enactment of this Act 
    (except that such provisions shall be subject to any amendments to 
    such provisions that may be contained in title II of this Act), to 
    assistance obligated by the Secretary before October 1, 1999, for 
    the certificate or voucher program under section 8 of the United 
    States Housing Act of 1937, if the Secretary determines that such 
    action is necessary for simplification of program administration, 
    avoidance of hardship, or other good cause.
    (e) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

           Subtitle D--Home Rule Flexible Grant Demonstration

SEC. 561. HOME RULE FLEXIBLE GRANT DEMONSTRATION PROGRAM.

    The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is 
amended by adding at the end the following new title:

           ``TITLE IV--HOME RULE FLEXIBLE GRANT DEMONSTRATION

``SEC. 401. PURPOSE.

    The purpose of this title is to demonstrate the effectiveness of 
authorizing local governments and municipalities, in coordination with 
the public housing agencies for such jurisdictions--
        ``(1) to receive and combine program allocations of covered 
    housing assistance; and
        ``(2) to design creative approaches for providing and 
    administering Federal housing assistance based on the particular 
    needs of the jurisdictions that--
            ``(A) provide incentives to low-income families with 
        children whose head of the household is employed, seeking 
        employment, or preparing for employment by participating in a 
        job training or educational program, or any program that 
        otherwise assists individuals in obtaining employment and 
        attaining economic self-sufficiency;
            ``(B) reduce costs of Federal housing assistance and 
        achieve greater cost-effectiveness in Federal housing 
        assistance expenditures;
            ``(C) increase the stock of affordable housing and housing 
        choices for low-income families;
            ``(D) increase homeownership among low-income families;
            ``(E) reduce geographic concentration of assisted families;
            ``(F) reduce homelessness through providing permanent 
        housing solutions;
            ``(G) improve program management; and
            ``(H) achieve such other purposes with respect to low-
        income families, as determined by the participating local 
        governments and municipalities in coordination with the public 
        housing agencies;

``SEC. 402. FLEXIBLE GRANT PROGRAM.

    ``(a) Authority and Use.--The Secretary shall carry out a 
demonstration program in accordance with the purposes under section 401 
and the provisions of this title. A jurisdiction approved by the 
Secretary for participation in the program may receive and combine and 
enter into performance-based contracts for the use of amounts of 
covered housing assistance, in the manner determined appropriate by the 
participating jurisdiction, during the period of the jurisdiction's 
participation--
        ``(1) to provide housing assistance and services for low-income 
    families in a manner that facilitates the transition of such 
    families to work;
        ``(2) to reduce homelessness through providing permanent 
    housing solutions;
        ``(3) to increase homeownership among low-income families; or
        ``(4) for other housing purposes for low-income families 
    determined by the participating jurisdiction.
    ``(b) Period of Participation.--A jurisdiction may participate in 
the demonstration program under this title for a period consisting of 
not less than 1 nor more than 5 fiscal years.
    ``(c) Participating Jurisdictions.--
            ``(1) In general.--Subject to paragraph (2), during the 4-
        year period consisting of fiscal years 1999 through 2002, the 
        Secretary may approve for participation in the program under 
        this title not more than an aggregate of 100 jurisdictions over 
        the entire term of the demonstration program. A jurisdiction 
        that was approved for participation in the demonstration 
        program under this title in a fiscal year and that is 
        continuing such participation in any subsequent fiscal year 
        shall count as a single jurisdiction for purposes of the 
        numerical limitation under this paragraph.
        ``(2) Exclusion of high performing agencies.--Notwithstanding 
    any other provision of this title other than paragraph (4) of this 
    subsection, the Secretary may approve for participation in the 
    demonstration program under this title only jurisdictions served by 
    public housing agencies that--
            ``(A) are not designated as high-performing agencies, 
        pursuant to their most recent scores under the public housing 
        management assessment program under section 6(j)(2) (or any 
        successor assessment program for public housing agencies), as 
        of the time of approval; and
            ``(B) have a most recent score under the public housing 
        management assessment program under section 6(j)(2) (or any 
        successor assessment program for public housing agencies), as 
        of the time of approval, that is among the lowest 40 percent of 
        the scores of all agencies.
        ``(3) Limitation on troubled and non-troubled phas.--Of the 
    jurisdictions approved by the Secretary for participation in the 
    demonstration program under this title--
            ``(A) not more than 55 may be jurisdictions served by a 
        public housing agency that, at the time of approval, is 
        designated as a troubled agency under the public housing 
        management assessment program under section 6(j)(2) (or any 
        successor assessment program for public housing agencies); and
            ``(B) not more than 45 may be jurisdictions served by a 
        public housing agency that, at the time of approval, is not 
        designated as a troubled agency under the public housing 
        management assessment program under section 6(j)(2) (or any 
        successor assessment program for public housing agencies).
        ``(4) Exception.--If the City of Indianapolis, Indiana submits 
    an application for participation in the program under this title 
    and, upon review of the application under section 406(b), the 
    Secretary determines that such application is approvable under this 
    title, the Secretary shall approve such application, 
    notwithstanding the second sentence of section 406(b)(2). Such City 
    shall count for purposes of the numerical limitations on 
    jurisdictions under paragraphs (1) and (3) of section 402(c), but 
    the provisions of section 402(c)(2) (relating to exclusion of high-
    performing agencies) shall not apply to such City.

``SEC. 403. PROGRAM ALLOCATION AND COVERED HOUSING ASSISTANCE.

    ``(a) Program Allocation.--In each fiscal year, the amount made 
available to each participating jurisdiction under the demonstration 
program under this title shall be equal to the sum of the amounts of 
covered housing assistance that would otherwise be made available under 
the provisions of this Act to the public housing agency for the 
jurisdiction.
    ``(b) Covered Housing Assistance.--For purposes of this title, the 
term `covered housing assistance' means--
        ``(1) operating assistance under section 9 (as in effect before 
    the effective date under section 503(a) of the Quality Housing and 
    Work Responsibility Act of 1998);
        ``(2) modernization assistance under section 14 (as in effect 
    before the effective date under section 503(a) of the Quality 
    Housing and Work Responsibility Act of 1998);
        ``(3) assistance for the certificate and voucher programs under 
    section 8 (as in effect before the effective date under section 
    503(a) of the Quality Housing and Work Responsibility Act of 1998);
        ``(4) assistance from the Operating Fund under section 9(e);
        ``(5) assistance from the Capital Fund under section 9(d); and
        ``(6) tenant-based assistance under section 8 (as amended by 
    the Quality Housing and Work Responsibility Act of 1998).

``SEC. 404. APPLICABILITY OF REQUIREMENTS UNDER PROGRAMS FOR COVERED 
              HOUSING ASSISTANCE.

    ``(a) In General.--In each fiscal year of the demonstration program 
under this title, amounts made available to a participating 
jurisdiction under the demonstration program shall be subject to the 
same terms and conditions as such amounts would be subject to if made 
available under the provisions of this Act pursuant to which covered 
housing assistance is otherwise made available under this Act to the 
public housing agency for the jurisdiction, except that--
        ``(1) the Secretary may waive any such term or condition 
    identified by the jurisdiction to the extent that the Secretary 
    determines such action to be appropriate to carry out the purposes 
    of the demonstration program under this title; and
        ``(2) the participating jurisdiction may combine the amounts 
    made available and use the amounts for any activity eligible under 
    the programs under sections 8 and 9.
    ``(b) Number of Families Assisted.--In carrying out the 
demonstration program under this title, each participating jurisdiction 
shall assist substantially the same total number of eligible low-income 
families as would have otherwise been served by the public housing 
agency for the jurisdiction had the jurisdiction not participated in 
the demonstration program under this title.
    ``(c) Protection of Recipients.--This title may not be construed to 
authorize the termination of assistance to any recipient receiving 
assistance under this Act before the date of the enactment of this 
title as a result of the implementation of the demonstration program 
under this title.
    ``(d) Effect on Ability To Compete for Other Programs.--This title 
may not be construed to affect the ability of any applying or 
participating jurisdiction (or a public housing agency for any such 
jurisdiction) to compete or otherwise apply for or receive assistance 
under any other housing assistance program administered by the 
Secretary.

``SEC. 405. PROGRAM REQUIREMENTS.

    ``(a) Applicability of Certain Provisions.--Notwithstanding section 
404(a)(1), the Secretary may not waive, with respect to any 
participating jurisdiction, any of the following provisions:
        ``(1) The first sentence of paragraph (1) of section 3(a) 
    (relating to eligibility of low-income families).
        ``(2) Section 16 (relating to income eligibility and targeting 
    of assistance).
        ``(3) Paragraph (2) of section 3(a) (relating to rental 
    payments for public housing families).
        ``(4) Paragraphs (2) and (3) of section 8(o) (to the extent 
    such paragraphs limit the amount of rent paid by families assisted 
    with tenant-based assistance).
        ``(5) Section 18 (relating to demolition or disposition of 
    public housing).
    ``(b) Compliance With Assistance Plan.--A participating 
jurisdiction shall provide assistance using amounts received pursuant 
to this title in the manner set forth in the plan of the jurisdiction 
approved by the Secretary under section 406(a)(2).

``SEC. 406. APPLICATION.

    ``(a) In General.--The Secretary shall provide for jurisdictions to 
submit applications for approval to participate in the demonstration 
program under this title. An application--
        ``(1) shall be submitted only after the jurisdiction provides 
    for citizen participation through a public hearing and, if 
    appropriate, other means;
        ``(2) shall include a plan for the provision of housing 
    assistance with amounts received pursuant to this title that--
            ``(A) is developed by the jurisdiction;
            ``(B) takes into consideration comments from the public 
        hearing, any other public comments on the proposed program, and 
        comments from current and prospective residents who would be 
        affected; and
            ``(C) identifies each term or condition for which the 
        jurisdiction is requesting waiver under section 404 (a)(1);
        ``(3) shall describe how the plan for use of amounts will 
    assist in meeting the purposes of, and be used in accordance with, 
    sections 401 and 402(a), respectively;
        ``(4) shall propose standards for measuring performance in 
    using assistance provided pursuant to this title based on the 
    performance standards under subsection (b)(4);
        ``(5) shall propose the length of the period for participation 
    of the jurisdiction is in the demonstration program under this 
    title;
        ``(6) shall--
            ``(A) in the case of the application of any jurisdiction 
        within whose boundaries are areas subject to any other unit of 
        general local government, include the signed consent of the 
        appropriate executive official of such unit to the application; 
        and
            ``(B) in the case of the application of a consortia of 
        units of general local government (as provided under section 
        409(1)(B)), include the signed consent of the appropriate 
        executive officials of each unit included in the consortia;
        ``(7) shall include information sufficient, in the 
    determination of the Secretary--
            ``(A) to demonstrate that the jurisdiction has or will have 
        management and administrative capacity sufficient to carry out 
        the plan under paragraph (2), including a demonstration that 
        the applicant has a history of effectively administering 
        amounts provided under other programs of the Department of 
        Housing and Urban Development, such as the community 
        development block grant program, the HOME investment 
        partnerships program, and the programs for assistance for the 
        homeless under the Stewart B. McKinney Homeless Assistance Act;
            ``(B) to demonstrate that carrying out the plan will not 
        result in excessive duplication of administrative efforts and 
        costs, particularly with respect to activities performed by 
        public housing agencies operating within the boundaries of the 
        jurisdiction;
            ``(C) to describe the function and activities to be carried 
        out by such public housing agencies affected by the plan; and
            ``(D) to demonstrate that the amounts received by the 
        jurisdiction will be maintained separate from other funds 
        available to the jurisdiction and will be used only to carry 
        out the plan;
        ``(8) shall include information describing how the jurisdiction 
    will make decisions regarding asset management of housing for low-
    income families under programs for covered housing assistance or 
    assisted with grant amounts under this title;
        ``(9) shall--
            ``(A) clearly identify any State or local laws that will 
        affect implementation of the plan under paragraph (2) and any 
        contractual rights and property interests that may be affected 
        by the plan;
            ``(B) describe how the plan will be carried out with 
        respect to such laws, rights, and interests; and
            ``(C) contain a legal memorandum sufficient to describe how 
        the plan will comply with such laws and how the plan will be 
        carried out without violating or impairing such rights and 
        interests; and
        ``(10) shall identify procedures for how the jurisdiction shall 
    return to providing covered assistance for the jurisdiction under 
    the provisions of title I, in the case of determination under 
    subsection (b)(4)(B).
A plan required under paragraph (2) to be included in the application 
may be contained in a memorandum of agreement or other document 
executed by a jurisdiction and public housing agency, if such document 
is submitted together with the application.
    ``(b) Review, Approval, and Performance Standards.--
        ``(1) Review.--The Secretary shall review each application for 
    participation in the demonstration program under this title and 
    shall determine and notify the jurisdiction submitting the 
    application, not later than 90 days after its submission, of 
    whether the application is approvable under this title. If the 
    Secretary determines that the application of a jurisdiction is 
    approvable under this title, the Secretary shall provide affected 
    public housing agencies an opportunity to review and to provide 
    written comments on the application for a period of not less than 
    30 days after notification under the preceding sentence. If the 
    Secretary determines that an application is not approvable under 
    this title, the Secretary shall notify the jurisdiction submitting 
    the application of the reasons for such determination. Upon making 
    a determination of whether an application is approvable or 
    nonapprovable under this title, the Secretary shall make such 
    determination publicly available in writing together with a written 
    statement of the reasons for such determination.
        ``(2) Approval.--The Secretary may approve jurisdictions for 
    participation in the demonstration program under this title, but 
    only from among applications that the Secretary has determined 
    under paragraph are approvable under this title and only in 
    accordance with section 402(c). The Secretary shall base the 
    selection of jurisdictions to approve on the potential success, as 
    evidenced by the application, in--
            ``(A) achieving the goals set forth in the performance 
        standards under paragraph (4)(A); and
            ``(B) increasing housing choices for low-income families.
        ``(3) Agreement.--The Secretary shall offer to enter into an 
    agreement with each jurisdiction approved for participation in the 
    program under this title providing for assistance pursuant to this 
    title for a period in accordance with section 402(b) and 
    incorporating a requirement that the jurisdiction achieve a 
    particular level of performance in each of the areas for which 
    performance standards are established under paragraph (4)(A) of 
    this subsection. If the Secretary and the jurisdiction enter into 
    an agreement, the Secretary shall provide any covered housing 
    assistance for the jurisdiction in the manner authorized under this 
    title. The Secretary may not provide covered housing assistance for 
    a jurisdiction in the manner authorized under this title unless the 
    Secretary and jurisdiction enter into an agreement under this 
    paragraph.
        ``(4) Performance standards.--
            ``(A) Establishment.--The Secretary and each participating 
        jurisdiction may collectively establish standards for 
        evaluating the performance of the participating jurisdiction in 
        meeting the purposes under section 401 of this title, which may 
        include standards for--
                ``(i) moving dependent low-income families to economic 
            self-sufficiency;
                ``(ii) reducing the per-family cost of providing 
            housing assistance;
                ``(iii) expanding the stock of affordable housing and 
            housing choices for low-income families;
                ``(iv) improving program management;
                ``(v) increasing the number of homeownership 
            opportunities for low-income families;
                ``(vi) reducing homelessness through providing 
            permanent housing resources;
                ``(vii) reducing geographic concentration of assisted 
            families; and
                ``(viii) any other performance goals that the Secretary 
            and the participating jurisdiction may establish.
            ``(B) Failure to comply.--If, at any time during the 
        participation of a jurisdiction in the program under this 
        title, the Secretary determines that the jurisdiction is not 
        sufficiently meeting, or making progress toward meeting, the 
        levels of performance incorporated into the agreement of the 
        jurisdiction pursuant to subparagraph (A), the Secretary shall 
        terminate the participation of the jurisdiction in the program 
        under this title and require the implementation of the 
        procedures included in the application of the jurisdiction 
        pursuant to subsection (a)(10).
        ``(5) Troubled agencies.--The Secretary may establish 
    requirements for the approval of applications under this section 
    submitted by public housing agencies designated under section 
    6(j)(2) as troubled, which may include additional or different 
    criteria determined by the Secretary to be more appropriate for 
    such agencies.
    ``(c) Status of PHAs.--This title may not be construed to require 
any change in the legal status of any public housing agency or in any 
legal relationship between a jurisdiction and a public housing agency 
as a condition of participation in the program under this title.
    ``(d) PHA Plans.--In carrying out this title, the Secretary may 
provide for a streamlined public housing agency plan and planning 
process under section 5A for participating jurisdictions.

``SEC. 407. TRAINING.

    ``The Secretary, in consultation with representatives of public and 
assisted housing interests, may provide training and technical 
assistance relating to providing assistance under this title and may 
conduct detailed evaluations of up to 30 jurisdictions for the purpose 
of identifying replicable program models that are successful at 
carrying out the purposes of this title.

``SEC. 408. ACCOUNTABILITY.

    ``(a) Maintenance of Records.--Each participating jurisdiction 
shall maintain such records as the Secretary may require to--
        ``(1) document the amounts received by the jurisdiction under 
    this Act and the disposition of such amounts under the 
    demonstration program under this title;
        ``(2) ensure compliance by the jurisdiction with this title; 
    and
        ``(3) evaluate the performance of the jurisdiction under the 
    demonstration program under this title.
    ``(b) Reports.--Each participating jurisdiction shall annually 
submit to the Secretary a report in a form and at a time specified by 
the Secretary, which shall include--
        ``(1) documentation of the use of amounts made available to the 
    jurisdiction under this title;
        ``(2) any information as the Secretary may request to assist 
    the Secretary in evaluating the demonstration program under this 
    title; and
        ``(3) a description and analysis of the effect of assisted 
    activities in addressing the objectives of the demonstration 
    program under this title.
    ``(c) Access To Documents By Secretary and Comptroller General.--
The Secretary and the Comptroller General of the United States, or any 
duly authorized representative of the Secretary or the Comptroller 
General, shall have access for the purpose of audit and examination to 
any books, documents, papers, and records maintained by a participating 
jurisdiction that relate to the demonstration program under this title.
    ``(d) Performance Review and Evaluation.--
        ``(1) Performance review.--Based on the performance standards 
    established under section 406(b)(4), the Secretary shall monitor 
    the performance of participating jurisdictions in providing 
    assistance under this title.
        ``(2) Status report.--Not later than 60 days after the 
    conclusion of the second year of the demonstration program under 
    this title, the Secretary shall submit to Congress an interim 
    report on the status of the demonstration program and the progress 
    each participating jurisdiction in achieving the purposes of the 
    demonstration program under section 401.

``SEC. 409. DEFINITIONS.

    ``For purposes of this title, the following definitions shall 
apply:
        ``(1) Jurisdiction.--The term `jurisdiction' means--
            ``(A) a unit of general local government (as such term is 
        defined in section 104 of the Cranston-Gonzalez National 
        Affordable Housing Act) that has boundaries, for purposes of 
        carrying out this title, that--
                ``(i) wholly contain the area within which a public 
            housing agency is authorized to operate; and
                ``(ii) do not contain any areas contained within the 
            boundaries of any other participating jurisdiction; and
            ``(B) a consortia of such units of general local 
        government, organized for purposes of this title.
        ``(2) Participating jurisdiction.--The term `participating 
    jurisdiction' means, with respect to a period for which such an 
    agreement is made, a jurisdiction that has entered into an 
    agreement under section 406(b)(3) to receive assistance pursuant to 
    this title for such fiscal year.

``SEC. 410. TERMINATION AND EVALUATION.

    ``(a) Termination.--The demonstration program under this title 
shall terminate not less than 2 and not more than 5 years after the 
date on which the demonstration program is commenced.
    ``(b) Evaluation.--Not later than 6 months after the termination of 
the demonstration program under this title, the Secretary shall submit 
to the Congress a final report, which shall include--
        ``(1) an evaluation the effectiveness of the activities carried 
    out under the demonstration program; and
        ``(2) any findings and recommendations of the Secretary for any 
    appropriate legislative action.

``SEC. 411. APPLICABILITY.

    ``This title shall take effect on the date of the enactment of the 
Quality Housing and Work Responsibility Act of 1998.''.

  Subtitle E--Accountability and Oversight of Public Housing Agencies

SEC. 563. STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUBLIC HOUSING 
              AGENCIES.

    (a) In General.--The Secretary of Housing and Urban Development 
shall provide under subsection (e) for a study to be conducted to 
determine the effectiveness of various alternative methods of 
evaluating the performance of public housing agencies and other 
providers of federally assisted housing.
    (b) Purposes.--The purposes of the study under this section shall 
be--
        (1) to identify and examine various methods of evaluating and 
    improving the performance of public housing agencies in 
    administering public housing and tenant-based rental assistance 
    programs and of other providers of federally assisted housing, 
    which are alternatives to oversight by the Department of Housing 
    and Urban Development; and
        (2) to identify specific monitoring and oversight activities 
    currently conducted by the Department of Housing and Urban 
    Development and to evaluate whether such activities should be 
    eliminated, expanded, modified, or transferred to other entities 
    (including governmental and private entities) to increase accuracy 
    and effectiveness and improve monitoring.
    (c) Evaluation of Various Performance Evaluation Systems.--To carry 
out the purposes under subsection (b), the study under this section 
shall identify, and analyze the advantages and disadvantages of various 
methods of regulating and evaluating the performance of public housing 
agencies and other providers of federally assisted housing, including 
the following methods:
        (1) Current system.--The system pursuant to the United States 
    Housing Act of 1937, including the methods and requirements under 
    such system for reporting, auditing, reviewing, sanctioning, and 
    monitoring of such agencies and housing providers and the public 
    housing management assessment program pursuant to section 6(j) of 
    the United States Housing Act of 1937.
        (2) Accreditation models.--Various models that are based upon 
    accreditation of such agencies and housing providers, subject to 
    the following requirements:
            (A) The study shall identify and analyze various models 
        used in other industries and professions for accreditation and 
        determine the extent of their applicability to the programs for 
        public housing and federally assisted housing.
            (B) If any accreditation models are determined to be 
        applicable to the public and federally assisted housing 
        programs, the study shall identify appropriate goals, 
        objectives, and procedures for an accreditation program for 
        such agencies and housing providers.
            (C) The study shall evaluate the feasibility and merit of 
        establishing an independent accreditation and evaluation entity 
        to assist, supplement, or replace the role of the Department of 
        Housing and Urban Development in assessing and monitoring the 
        performance of such agencies and housing providers.
            (D) The study shall identify the necessary and appropriate 
        roles and responsibilities of various entities that would be 
        involved in an accreditation program, including the Department 
        of Housing and Urban Development, the Inspector General of the 
        Department, an accreditation entity, independent auditors and 
        examiners, local entities, and public housing agencies.
            (E) The study shall estimate the costs involved in 
        developing and maintaining such an independent accreditation 
        program.
        (3) Performance based models.--Various performance-based 
    models, including systems that establish performance goals or 
    targets, assess the compliance with such goals or targets, and 
    provide for incentives or sanctions based on performance relative 
    to such goals or targets.
        (4) Local review and monitoring models.--Various models 
    providing for local, resident, and community review and monitoring 
    of such agencies and housing providers, including systems for 
    review and monitoring by local and State governmental bodies and 
    agencies.
        (5) Private models.--Various models using private contractors 
    for review and monitoring of such agencies and housing providers.
        (6) Other models.--Various models of any other systems that may 
    be more effective and efficient in regulating and evaluating such 
    agencies and housing providers.
    (d) Consultation.--The entity that, pursuant to subsection (e), 
carries out the study under this section shall, in carrying out the 
study, consult with individuals and organizations experienced in 
managing public housing, private real estate managers, representatives 
from State and local governments, residents of public housing, families 
and individuals receiving tenant-based assistance, the Secretary of 
Housing and Urban Development, the Inspector General of the Department 
of Housing and Urban Development, and the Comptroller General of the 
United States.
    (e) Contract to Conduct Study.--
        (1) In general.--Subject to paragraph (2), the Secretary shall 
    enter into a contract, within 90 days of the enactment of this Act, 
    with a public or nonprofit private entity to conduct the study 
    under this section, using amounts made available pursuant to 
    subsection (g).
        (2) National academy of public administration.--The Secretary 
    shall request the National Academy of Public Administration to 
    enter into the contract under paragraph (1) to conduct the study 
    under this section. If such Academy declines to conduct the study, 
    the Secretary shall carry out such paragraph through other public 
    or nonprofit private entities, selected through a competitive 
    process.
    (f) Report.--
        (1) Interim report.--The Secretary shall ensure that, not later 
    than the expiration of the 6-month period beginning on the date of 
    the execution of the contract under subsection (e)(1), the entity 
    conducting the study under this section submits to the Congress an 
    interim report describing the actions taken to carry out the study, 
    the actions to be taken to complete the study, and any findings and 
    recommendations available at the time.
        (2) Final report.--The Secretary shall ensure that--
            (A) not later than the expiration of the 12-month period 
        beginning on the date of the execution of the contract under 
        subsection (e)(1), the study required under this section is 
        completed and a report describing the findings and 
        recommendations as a result of the study is submitted to the 
        Congress; and
            (B) before submitting the report under this paragraph to 
        the Congress, the report is submitted to the Secretary, 
        national organizations for public housing agencies, and other 
        appropriate national organizations at such time to provide the 
        Secretary and such agencies an opportunity to review the report 
        and provide written comments on the report, which shall be 
        included together with the report upon submission to the 
        Congress under subparagraph (A).
    (g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 564. PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM.

    Section 6(j) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(j)), as amended by the preceding provisions of this Act, is 
further amended--
        (1) in paragraph (1)--
            (A) by striking subparagraph (B) and inserting the 
        following new subparagraph:
        ``(B) The amount and percentage of funds provided to the public 
    housing agency from the Capital Fund under section 9(d) which 
    remain unobligated by the public housing agency after 3 years.'';
            (B) in subparagraph (D), by striking ``energy'' and 
        inserting ``utility'';
            (C) by transferring and inserting subparagraph (E) after 
        subparagraph (D);
            (D) by redesignating subparagraph (H) as subparagraph (K); 
        and
            (E) by inserting after subparagraph (G) the following new 
        subparagraphs:
        ``(H) The extent to which the public housing agency--
            ``(i) coordinates, promotes, or provides effective programs 
        and activities to promote the economic self-sufficiency of 
        public housing residents; and
            ``(ii) provides public housing residents with opportunities 
        for involvement in the administration of the public housing.
        ``(I) The extent to which the public housing agency--
            ``(i) implements effective screening and eviction policies 
        and other anticrime strategies; and
            ``(ii) coordinates with local government officials and 
        residents in the project and implementation of such strategies.
        ``(J) The extent to which the public housing agency is 
    providing acceptable basic housing conditions.'';
        (2) in paragraph (2)--
            (A) in subparagraph (A)(i)--
                (i) by inserting after the first sentence the 
            following: ``Such procedures shall provide that an agency 
            that fails on a widespread basis to provide acceptable 
            basic housing conditions for its residents shall be 
            designated as a troubled public housing agency. The 
            Secretary may use a simplified set of indicators for public 
            housing agencies with less than 250 public housing 
            units.''; and
                (ii) by striking ``under section 14'' and inserting 
            ``for assistance from the Capital Fund under section 9(d);
            (B) in subparagraph (A)(iii), by striking ``under section 
        14'' and inserting``for assistance from the Capital Fund under 
        section 9(d)'';
            (C) in subparagraph (B)(i)--
                (i) by inserting ``with more than 250 units'' after 
            ``public housing agency''; and
                (ii) by striking ``review conducted under section 
            14(p)'' and inserting ``comparable and recent review''; and
            (D) in the first sentence of subparagraph (C), by inserting 
        ``(if applicable)'' after ``subparagraph (B)'';
        (3) in paragraph (5)(F), as so redesignated by the preceding 
    provisions of this Act, by striking ``program under section 14'' 
    and all that follows and inserting ``program for assistance from 
    the Capital Fund under section 9(d) and specifies the amount of 
    assistance the agency received under such program.''; and
        (4) by adding at the end the following new paragraphs:
    ``(6)(A) To the extent that the Secretary determines such action to 
be necessary in order to ensure the accuracy of any certification made 
under this section, the Secretary shall require an independent auditor 
to review documentation or other information maintained by a public 
housing agency pursuant to this section to substantiate each 
certification submitted by the agency or corporation relating to the 
performance of that agency or corporation.
    ``(B) The Secretary may withhold, from assistance otherwise payable 
to the agency or corporation under section 9, amounts sufficient to pay 
for the reasonable costs of any review under this paragraph.
    ``(7) The Secretary shall apply the provisions of this subsection 
to resident management corporations in the same manner as applied to 
public housing agencies.''.

SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING AGENCIES 
              IN SUBSTANTIAL DEFAULT.

    (a) In General.--Section 6(j)(3) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(j)(3)) is amended--
        (1) in subparagraph (A)--
            (A) by striking clause (i) and inserting the following new 
        clause:
        ``(i) solicit competitive proposals from other public housing 
    agencies and private housing management agents which (I) in the 
    discretion of the Secretary, may be selected by existing public 
    housing residents through administrative procedures established by 
    the Secretary, and (II) if appropriate, shall provide for such 
    agents to manage all, or part, of the housing administered by the 
    public housing agency or all or part of the other programs of the 
    agency;'';
            (B) in clause (iii), by striking ``under section 14'' and 
        inserting ``from the Capital Fund under section 9(d)''; and
            (C) by striking clause (iv) and inserting the following new 
        clauses:
        ``(iv) take possession of all or part of the public housing 
    agency, including all or part of any project or program of the 
    agency, including any project or program under any other provision 
    of this title; and
        ``(v) require the agency to make other arrangements acceptable 
    to the Secretary and in the best interests of the public housing 
    residents and families assisted under section 8 for managing all, 
    or part, of the public housing administered by the agency or of the 
    programs of the agency.''; and
        (2) by striking subparagraphs (B) through (D) and inserting the 
    following new subparagraphs:
    ``(B)(i) If a public housing agency is identified as troubled under 
this subsection, the Secretary shall notify the agency of the troubled 
status of the agency.
    ``(ii)(I) Upon the expiration of the 1-year period beginning on the 
later of the date on which the agency receives initial notice from the 
Secretary of the troubled status of the agency under clause (i) and the 
date of the enactment of the Quality Housing and Work Responsibility 
Act of 1998, the agency shall improve its performance, as measured by 
the performance indicators established pursuant to paragraph (1), by at 
least 50 percent of the difference between the most recent performance 
measurement and the measurement necessary to remove that agency's 
designation as troubled.
    ``(II) Upon the expiration of the 2-year period beginning on the 
later of the date on which the agency receives initial notice from the 
Secretary of the troubled status of the agency under clause (i) and the 
date of the enactment of the Quality Housing and Work Responsibility 
Act of 1998, the agency shall improve its performance, as measured by 
the performance indicators established pursuant to paragraph (1), such 
that the agency is no longer designated as troubled.
    ``(III) In the event that a public housing agency designated as 
troubled under this subsection fails to comply with the requirements 
set forth in subclause (I) or (II), the Secretary shall--
        ``(aa) in the case of a troubled public housing agency with 
    1,250 or more units, petition for the appointment of a receiver 
    pursuant to subparagraph (A)(ii); or
        ``(bb) in the case of a troubled public housing agency with 
    fewer than 1,250 units, either petition for the appointment of a 
    receiver pursuant to subparagraph (A)(ii), or take possession of 
    the public housing agency (including all or part of any project or 
    program of the agency) pursuant to subparagraph (A)(iv) and 
    appoint, on a competitive or noncompetitive basis, an individual or 
    entity as an administrative receiver to assume the responsibilities 
    of the Secretary for the administration of all or part of the 
    public housing agency (including all or part of any project or 
    program of the agency).
This subparagraph shall not be construed to limit the courses of action 
available to the Secretary under subparagraph (A).
    ``(IV) During the period between the date on which a petition is 
filed under subclause (III)(aa) and the date on which a receiver 
assumes responsibility for the management of the public housing agency 
under such subclause, the Secretary may take possession of the public 
housing agency (including all or part of any project or program of the 
agency) pursuant to subparagraph (A)(iv) and may appoint, on a 
competitive or noncompetitive basis, an individual or entity as an 
administrative receiver to assume the responsibilities of the Secretary 
for the administration of all or part of the public housing agency 
(including all or part of any project or program of the agency).
    ``(C) If a receiver is appointed pursuant to subparagraph (A)(ii), 
in addition to the powers accorded by the court appointing the 
receiver, the receiver--
        ``(i) may abrogate any contract to which the United States or 
    an agency of the United States is not a party that, in the 
    receiver's written determination (which shall include the basis for 
    such determination), substantially impedes correction of the 
    substantial default, but only after the receiver determines that 
    reasonable efforts to renegotiate such contract have failed;
        ``(ii) may demolish and dispose of all or part of the assets of 
    the public housing agency (including all or part of any project of 
    the agency) in accordance with section 18, including disposition by 
    transfer of properties to resident-supported nonprofit entities;
        ``(iii) if determined to be appropriate by the Secretary, may 
    seek the establishment, as permitted by applicable State and local 
    law, of 1 or more new public housing agencies;
        ``(iv) if determined to be appropriate by the Secretary, may 
    seek consolidation of all or part of the agency (including all or 
    part of any project or program of the agency), as permitted by 
    applicable State and local laws, into other well-managed public 
    housing agencies with the consent of such well-managed agencies; 
    and
        ``(v) shall not be required to comply with any State or local 
    law relating to civil service requirements, employee rights (except 
    civil rights), procurement, or financial or administrative controls 
    that, in the receiver's written determination (which shall include 
    the basis for such determination), substantially impedes correction 
    of the substantial default.
    ``(D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes 
possession of all or part of the public housing agency, including all 
or part of any project or program of the agency, the Secretary--
        ``(I) may abrogate any contract to which the United States or 
    an agency of the United States is not a party that, in the written 
    determination of the Secretary (which shall include the basis for 
    such determination), substantially impedes correction of the 
    substantial default, but only after the Secretary determines that 
    reasonable efforts to renegotiate such contract have failed;
        ``(II) may demolish and dispose of all or part of the assets of 
    the public housing agency (including all or part of any project of 
    the agency) in accordance with section 18, including disposition by 
    transfer of properties to resident-supported nonprofit entities;
        ``(III) may seek the establishment, as permitted by applicable 
    State and local law, of 1 or more new public housing agencies;
        ``(IV) may seek consolidation of all or part of the agency 
    (including all or part of any project or program of the agency), as 
    permitted by applicable State and local laws, into other well-
    managed public housing agencies with the consent of such well-
    managed agencies;
        ``(V) shall not be required to comply with any State or local 
    law relating to civil service requirements, employee rights (except 
    civil rights), procurement, or financial or administrative controls 
    that, in the Secretary's written determination (which shall include 
    the basis for such determination), substantially impedes correction 
    of the substantial default; and
        ``(VI) shall, without any action by a district court of the 
    United States, have such additional authority as a district court 
    of the United States would have the authority to confer upon a 
    receiver to achieve the purposes of the receivership.
    ``(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary 
appoints an administrative receiver to assume the responsibilities of 
the Secretary for the administration of all or part of the public 
housing agency (including all or part of any project or program of the 
agency), the Secretary may delegate to the administrative receiver any 
or all of the powers given the Secretary by this subparagraph, as the 
Secretary determines to be appropriate and subject to clause (iii).
    ``(iii) An administrative receiver may not take an action described 
in subclause (III) or (IV) of clause (i) unless the Secretary first 
approves an application by the administrative receiver to authorize 
such action.
    ``(E) The Secretary may make available to receivers and other 
entities selected or appointed pursuant to this paragraph such 
assistance as the Secretary determines in the discretion of the 
Secretary is necessary and available to remedy the substantial 
deterioration of living conditions in individual public housing 
projects or other related emergencies that endanger the health, safety, 
and welfare of public housing residents or families assisted under 
section 8. A decision made by the Secretary under this paragraph shall 
not be subject to review in any court of the United States, or in any 
court of any State, territory, or possession of the United States.
    ``(F) In any proceeding under subparagraph (A)(ii), upon a 
determination that a substantial default has occurred and without 
regard to the availability of alternative remedies, the court shall 
appoint a receiver to conduct the affairs of all or part of the public 
housing agency in a manner consistent with this Act and in accordance 
with such further terms and conditions as the court may provide. The 
receiver appointed may be another public housing agency, a private 
management corporation, or any other person or appropriate entity. The 
court shall have power to grant appropriate temporary or preliminary 
relief pending final disposition of the petition by the Secretary.
    ``(G) The appointment of a receiver pursuant to this paragraph may 
be terminated, upon the petition of any party, when the court 
determines that all defaults have been cured or the public housing 
agency is capable again of discharging its duties.
    ``(H) If the Secretary (or an administrative receiver appointed by 
the Secretary) takes possession of a public housing agency (including 
all or part of any project or program of the agency), or if a receiver 
is appointed by a court, the Secretary or receiver shall be deemed to 
be acting not in the official capacity of that person or entity, but 
rather in the capacity of the public housing agency, and any liability 
incurred, regardless of whether the incident giving rise to that 
liability occurred while the Secretary or receiver was in possession of 
all or part of the public housing agency (including all or part of any 
project or program of the agency), shall be the liability of the public 
housing agency.''.
    (b) Applicability.--The provisions of, and duties and authorities 
conferred or confirmed by, the amendments made by subsection (a) shall 
apply with respect to any action taken before, on, or after the 
effective date of this Act and shall apply to any receiver appointed 
for a public housing agency before the date of the enactment of this 
Act.
    (c) Technical Correction Regarding Applicability to Section 8.--
Section 8(h) of the United States Housing Act of 1937 is amended by 
inserting ``(except as provided in section 6(j)(3))'' after ``section 
6''.
    (d) Implementation.--The Secretary may administer the amendments 
made by subsection (a) as necessary to ensure the efficient and 
effective initial implementation of this section.
    (e) Applicability.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 566. AUDITS.

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437d), as amended by the preceding provisions of this Act, is further 
amended by inserting after subsection (g) the following new subsection:
    ``(h) Audits.--
        ``(1) By secretary and comptroller general.--Each contract for 
    contributions for any assistance under this Act to a public housing 
    agency shall provide that the Secretary, the Inspector General of 
    the Department of Housing and Urban Development, and the 
    Comptroller General of the United States, or any of their duly 
    authorized representatives, shall, for the purpose of audit and 
    examination, have access to any books, documents, papers, and 
    records of the public housing agency that are pertinent to this Act 
    and to its operations with respect to financial assistance under 
    the this Act.
        ``(2) Withholding of amounts for audits under single audit 
    act.--The Secretary may, in the sole discretion of the Secretary, 
    arrange for and pay the costs of an audit required under chapter 75 
    of title 31, United States Code. In such circumstances, the 
    Secretary may withhold, from assistance otherwise payable to the 
    agency under this Act, amounts sufficient to pay for the reasonable 
    costs of conducting an acceptable audit, including, when 
    appropriate, the reasonable costs of accounting services necessary 
    to place the agency's books and records in auditable condition. As 
    agreed to by the Secretary and the Inspector General, the Inspector 
    General may arrange for an audit under this paragraph.''.

SEC. 567. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW ORLEANS.

    (a) Establishment.--The Secretary and the Housing Authority of New 
Orleans (in this section referred to as the ``Housing Authority'') 
shall, pursuant to the cooperative endeavor agreement in effect between 
the Secretary and the Housing Authority, establish an advisory council 
for the Housing Authority of New Orleans (in this section referred to 
as the ``advisory council'') that complies with the requirements of 
this section.
    (b) Membership.--
        (1) In general.--The advisory council shall be appointed by the 
    Secretary, not later than 90 days after the date of the enactment 
    of this Act, and shall be composed of the following members:
            (A) The Inspector General of the Department of Housing and 
        Urban Development (or the Inspector General's designee).
            (B) Not more than 7 other members, who shall be selected 
        for appointment based on their experience in successfully 
        reforming troubled public housing agencies or in providing 
        affordable housing in coordination with State and local 
        governments, the private sector, affordable housing residents, 
        or local nonprofit organizations.
        (2) Prohibition on additional pay.--Members of the advisory 
    council shall serve without compensation, but shall be reimbursed 
    for travel, subsistence, and other necessary expenses incurred in 
    the performance of their duties as members of the Board using 
    amounts made available for technical assistance under section 9(h) 
    of the United States Housing Act of 1937 (as amended by this Act).
    (c) Functions.--The advisory council shall--
        (1) establish standards and guidelines for assessing the 
    performance of the Housing Authority in carrying out operational, 
    asset management, and financial functions for purposes of the 
    reports and finding under subsections (d) and (e), respectively;
        (2) provide advice, expertise, and recommendations to the 
    Housing Authority regarding the management, operation, repair, 
    redevelopment, revitalization, demolition, and disposition of 
    public housing projects of the Housing Authority;
        (3) report to the Congress under subsection (d) regarding any 
    progress of the Housing Authority in improving the performance of 
    its functions; and
        (4) make a final finding to the Congress under subsection (e) 
    regarding the future of the Housing Authority.
    (d) Quarterly Reports.--The advisory council shall report to the 
Congress and the Secretary not less than every 3 months regarding the 
performance of the Housing Authority and any progress of the authority 
in improving its performance and carrying out its functions.
    (e) Final Finding.--Upon the expiration of the 18-month period that 
begins upon the appointment under subsection (b)(1) of all members of 
the advisory council, the advisory council shall make and submit to the 
Congress and the Secretary a finding of whether the Housing Authority 
has substantially improved its performance, the performance of its 
functions, and the overall condition of the Authority such that the 
Authority should be allowed to continue to operate as the manager of 
the public housing of the Authority. In making the finding under this 
subsection, the advisory council shall consider whether the Housing 
Authority has made sufficient progress in the demolition and 
revitalization of the Desire Homes project, the revitalization of the 
St. Thomas Homes project, the appropriate allocation of operating 
subsidy amounts, and the appropriate expending of modernization 
amounts.
    (f) Receivership.--If the advisory council finds under subsection 
(e) that the Housing Authority has not substantially improved its 
performance in a manner sufficient that the Authority should be allowed 
to continue to operate as the manager of the public housing of the 
Authority, the Secretary shall (notwithstanding the conditions required 
under section 6(j)(3)(A) of the United States Housing Act of 1937 for 
action under such section) petition under clause (ii) of section 
6(j)(3)(A) for the appointment of a receiver for the Housing Authority, 
which receivership shall be subject to the provisions of such section.
    (g) Regular Remedies.--Nothing in this section, or in the 
cooperative endeavor agreement in effect between the Secretary and the 
Housing Authority, may be construed to prevent the Secretary from 
taking any action with respect to the Housing Authority, in accordance 
with such section 6(j)(3) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(j)(3)), as amended by this Act, that is authorized under 
section.
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 568. TREATMENT OF TROUBLED PHA'S.

    Section 105 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705) is amended by adding at the end the following new 
subsection:
    ``(g) Treatment of Troubled Public Housing Agencies.--
        ``(1) Effect of troubled status on chas.--The comprehensive 
    housing affordability strategy (or any consolidated plan 
    incorporating such strategy) for the State or unit of general local 
    government in which any troubled public housing agency is located 
    shall not be considered to comply with the requirements under this 
    section unless such plan includes a description of the manner in 
    which the State or unit will provide financial or other assistance 
    to such troubled agency in improving its operations to remove such 
    designation.
        ``(2) Definition.--For purposes of this subsection, the term 
    `troubled public housing agency' means a public housing agency 
    that, upon the effective date of the Quality Housing and Work 
    Responsibility Act of 1998, is designated under section 6(j)(2) of 
    the United States Housing Act of 1937 as a troubled public housing 
    agency.''.

     Subtitle F--Safety and Security in Public and Assisted Housing

SEC. 575. PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND SECTION 8 
              ASSISTANCE.

    (a) Drug-Related and Criminal Activity Under Public Housing 
Grievance Procedure.--Section 6(k) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(k)) is amended, in the matter following paragraph 
(6)--
        (1) by inserting ``violent or'' before ``drug-related''; and
        (2) by inserting ``or any activity resulting in a felony 
    conviction,'' after ``on or off such premises,''.
    (b) Termination of Tenancy in Public Housing.--Section 6(l) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
        (1) in paragraph (4) (as so redesignated by the preceding 
    provisions of this Act)--
            (A) by striking subparagraph (A) and inserting the 
        following new subparagraph:
            ``(A) a reasonable period of time, but not to exceed 30 
        days--
                ``(i) if the health or safety of other tenants, public 
            housing agency employees, or persons residing in the 
            immediate vicinity of the premises is threatened; or
                ``(ii) in the event of any drug-related or violent 
            criminal activity or any felony conviction;''; and
            (B) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``, except that if a State or local 
        law provides for a shorter period of time, such shorter period 
        shall apply'';
        (2) in paragraph (7) (as so redesignated by the preceding 
    provisions of this Act), by striking ``and'' at the end;
        (4) by inserting after paragraph (7) (as so redesignated by the 
    preceding provisions of this Act), the following new paragraph:
        ``(7) provide that any occupancy in violation of section 576(b) 
    of the Quality Housing and Work Responsibility Act of 1998 
    (relating to ineligibility of illegal drug users and alcohol 
    abusers) or the furnishing of any false or misleading information 
    pursuant to section 577 of such Act (relating to termination of 
    tenancy and assistance for illegal drug users and alcohol abusers) 
    shall be cause for termination of tenancy;''.
    (c) Availability of Criminal Records for Tenant Screening and 
Eviction.--Section 6(q) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(q)(1)) is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (A)--
                (i) by striking ``subparagraph (B)'' and inserting 
            ``subparagraph (C)''; and
                (ii) by striking ``public housing'' and inserting 
            ``covered housing assistance'';
            (B) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (C) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) Requests by owners of project-based section 8 
        housing.--A public housing agency may make a request under 
        subparagraph (A) for information regarding applicants for, or 
        tenants of, housing that is provided project-based assistance 
        under section 8 only if the housing is located within the 
        jurisdiction of the agency and the owner of such housing has 
        requested that the agency obtain such information on behalf of 
        the owner. Upon such a request by the owner, the agency shall 
        make a request under subparagraph (A) for the information. The 
        agency may not make such information available to the owner but 
        shall perform determinations for the owner regarding screening, 
        lease enforcement, and eviction based on criteria supplied by 
        the owner.'';
        (2) in paragraph (3)--
            (A) by striking ``Fee'' and inserting ``Fees''; and
            (B) by adding at the end the following new sentence: ``In 
        the case of a public housing agency obtaining information 
        pursuant to paragraph (1)(B) for another owner of housing, the 
        agency may pass such fee on to the owner initiating the request 
        and may charge additional reasonable fees for making the 
        request on behalf of the owner and taking other actions for 
        owners under this subsection.'';
        (3) by striking paragraph (5) and inserting the following new 
    paragraph:
        ``(8) Definitions.--For purposes of this subsection, the 
    following definitions shall apply:
            ``(A) Adult.--The term `adult' means a person who is 18 
        years of age or older, or who has been convicted of a crime as 
        an adult under any Federal, State, or tribal law.
            ``(B) Covered housing assistance.--The term `covered 
        housing assistance' means--
                ``(i) a dwelling unit in public housing;
                ``(ii) a dwelling unit in housing that is provided 
            project-based assistance under section 8, including new 
            construction and substantial rehabilitation projects; and
                ``(iii) tenant-based assistance under section 8.
            ``(C) Owner.--The term `owner' means, with respect to 
        covered housing assistance described in subparagraph (B)(ii), 
        the entity or private person (including a cooperative or public 
        housing agency) that has the legal right to lease or sublease 
        dwelling units in the housing assisted.''; and
        (4) by inserting after paragraph (4) the following new 
    paragraphs:
        ``(5) Confidentiality.--A public housing agency receiving 
    information under this subsection may use such information only for 
    the purposes provided in this subsection and such information may 
    not be disclosed to any person who is not an officer, employee, or 
    authorized representative of the agency and who has a job-related 
    need to have access to the information in connection with admission 
    of applicants, eviction of tenants, or termination of assistance. 
    For judicial eviction proceedings, disclosures may be made to the 
    extent necessary. The Secretary shall, by regulation, establish 
    procedures necessary to ensure that information provided under this 
    subsection to a public housing agency is used, and confidentiality 
    of such information is maintained, as required under this 
    subsection. The Secretary shall establish standards for 
    confidentiality of information obtained under this subsection by 
    public housing agencies on behalf of owners.
        ``(6) Penalty.--Any person who knowingly and willfully requests 
    or obtains any information concerning an applicant for, or tenant 
    of, covered housing assistance pursuant to the authority under this 
    subsection under false pretenses, or any person who knowingly and 
    willfully discloses any such information in any manner to any 
    individual not entitled under any law to receive it, shall be 
    guilty of a misdemeanor and fined not more than $5,000. The term 
    `person' as used in this paragraph include an officer, employee, or 
    authorized representative of any public housing agency.
        ``(7) Civil Action.--Any applicant for, or tenant of, covered 
    housing assistance affected by (A) a negligent or knowing 
    disclosure of information referred to in this subsection about such 
    person by an officer, employee, or authorized representative of any 
    public housing agency, which disclosure is not authorized by this 
    subsection, or (B) any other negligent or knowing action that is 
    inconsistent with this subsection, may bring a civil action for 
    damages and such other relief as may be appropriate against any 
    public housing agency responsible for such unauthorized action. The 
    district court of the United States in the district in which the 
    affected applicant or tenant resides, in which such unauthorized 
    action occurred, or in which the officer, employee, or 
    representative alleged to be responsible for any such unauthorized 
    action resides, shall have jurisdiction in such matters. 
    Appropriate relief that may be ordered by such district courts 
    shall include reasonable attorney's fees and other litigation 
    costs.''.
    (d) Authority To Require Access to Criminal Records.--Section 6 of 
the United States Housing Act of 1937 (42 U.S.C. 1437d), as amended by 
the preceding provisions of this Act, is further amended by adding at 
the end the following new subsection:
    ``(t) Authority To Require Access to Criminal Records.--A public 
housing agency may require, as a condition of providing admission to 
the public housing program or assisted housing program under the 
jurisdiction of the public housing agency, that each adult member of 
the household provide a signed, written authorization for the public 
housing agency to obtain records described in subsection (q)(1) 
regarding such member of the household from the National Crime 
Information Center, police departments, and other law enforcement 
agencies.''.
    (e) Obtaining Information From Drug Abuse Treatment Facilities.--
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d), 
as amended by the preceding provisions of this Act, is further amended 
by adding at the end the following new subsection:
    ``(u) Obtaining Information From Drug Abuse Treatment Facilities.--
        ``(1) Authority.--Notwithstanding any other provision of law 
    other than the Public Health Service Act (42 U.S.C. 201 et seq.), a 
    public housing agency may require each person who applies for 
    admission to public housing to sign one or more forms of written 
    consent authorizing the agency to receive information from a drug 
    abuse treatment facility that is solely related to whether the 
    applicant is currently engaging in the illegal use of a controlled 
    substance.
        ``(2) Confidentiality of applicant's records.--
            ``(A) Limitation on information requested.--In a form of 
        written consent, a public housing agency may request only 
        whether the drug abuse treatment facility has reasonable cause 
        to believe that the applicant is currently engaging in the 
        illegal use of a controlled substance.
            ``(B) Records management.--Each public housing agency that 
        receives information under this subsection from a drug abuse 
        treatment facility shall establish and implement a system of 
        records management that ensures that any information received 
        by the public housing agency under this subsection--
                ``(i) is maintained confidentially in accordance with 
            section 543 of the Public Health Service Act (12 U.S.C. 
            290dd-2);
                ``(ii) is not misused or improperly disseminated; and
                ``(iii) is destroyed, as applicable--

                    ``(I) not later than 5 business days after the date 
                on which the public housing agency gives final approval 
                for an application for admission; or
                    ``(II) if the public housing agency denies the 
                application for admission, in a timely manner after the 
                date on which the statute of limitations for the 
                commencement of a civil action from the applicant based 
                upon that denial of admission has expired.

            ``(C) Expiration of written consent.--In addition to the 
        requirements of subparagraph (B), an applicant's signed written 
        consent shall expire automatically after the public housing 
        agency has made a final decision to either approve or deny the 
        applicant's application for admittance to public housing.
        ``(3) Prohibition of discriminatory treatment of applicants.--
            ``(A) Forms signed.--A public housing agency may only 
        require an applicant for admission to public housing to sign 
        one or more forms of written consent under this subsection if 
        the public housing agency requires all such applicants to sign 
        the same form or forms of written consent.
            ``(B) Circumstances of inquiry.--A public housing agency 
        may only make an inquiry to a drug abuse treatment facility 
        under this subsection if--
                ``(i) the public housing agency makes the same inquiry 
            with respect to all applicants; or
                ``(ii) the public housing agency only makes the same 
            inquiry with respect to each and every applicant with 
            respect to whom--

                    ``(I) the public housing agency receives 
                information from the criminal record of the applicant 
                that indicates evidence of a prior arrest or 
                conviction; or
                    ``(II) the public housing agency receives 
                information from the records of prior tenancy of the 
                applicant that demonstrates that the applicant--

                        ``(aa) engaged in the destruction of property;
                        ``(bb) engaged in violent activity against 
                    another person; or
                        ``(cc) interfered with the right of peaceful 
                    enjoyment of the premises of another tenant.
        ``(4) Fee permitted.--A drug abuse treatment facility may 
    charge a public housing agency a reasonable fee for information 
    provided under this subsection.
        ``(5) Disclosure permitted by treatment facilities.--A drug 
    abuse treatment facility shall not be liable for damages based on 
    any information required to be disclosed pursuant to this 
    subsection if such disclosure is consistent with section 543 of the 
    Public Health Service Act (42 U.S.C. 290dd-2).
        ``(6) Option to not request information.--A public housing 
    agency shall not be liable for damages based on its decision not to 
    require each person who applies for admission to public housing to 
    sign one or more forms of written consent authorizing the public 
    housing agency to receive information from a drug abuse treatment 
    facility under this subsection.
        ``(7) Definitions.--For purposes of this subsection, the 
    following definitions shall apply:
            ``(A) Drug abuse treatment facility.--The term `drug abuse 
        treatment facility' means an entity that--
                ``(i) is--

                    ``(I) an identified unit within a general medical 
                care facility; or
                    ``(II) an entity other than a general medical care 
                facility; and

                ``(ii) holds itself out as providing, and provides, 
            diagnosis, treatment, or referral for treatment with 
            respect to the illegal use of a controlled substance.
            ``(B) Controlled substance.--The term `controlled 
        substance' has the meaning given the term in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802).
            ``(C) Currently engaging in the illegal use of a controlled 
        substance.--The term `currently engaging in the illegal use of 
        a controlled substance' means the illegal use of a controlled 
        substance that occurred recently enough to justify a reasonable 
        belief that an applicant's illegal use of a controlled 
        substance is current or that continuing illegal use of a 
        controlled substance by the applicant is a real and ongoing 
        problem.
        ``(8) Effective date.--This subsection shall take effect upon 
    enactment and without the necessity of guidance from, or any 
    regulation issued by, the Secretary.''.

SEC. 576. SCREENING OF APPLICANTS FOR FEDERALLY ASSISTED HOUSING.

    (a) Ineligibility Because of Eviction for Drug Crimes.--Any tenant 
evicted from federally assisted housing by reason of drug-related 
criminal activity (as such term is defined in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(b)) shall not be 
eligible for federally assisted housing during the 3-year period 
beginning on the date of such eviction, unless the evicted tenant 
successfully completes a rehabilitation program approved by the public 
housing agency (which shall include a waiver of this subsection if the 
circumstances leading to eviction no longer exist).
    (b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
        (1) In general.--Notwithstanding any other provision of law, a 
    public housing agency or an owner of federally assisted housing, as 
    determined by the Secretary, shall establish standards that 
    prohibit admission to the program or admission to federally 
    assisted housing for any household with a member--
            (A) who the public housing agency or owner determines is 
        illegally using a controlled substance; or
            (B) with respect to whom the public housing agency or owner 
        determines that it has reasonable cause to believe that such 
        household member's illegal use (or pattern of illegal use) of a 
        controlled substance, or abuse (or pattern of abuse) of 
        alcohol, may interfere with the health, safety, or right to 
        peaceful enjoyment of the premises by other residents.
        (2) Consideration of rehabilitation.--In determining whether, 
    pursuant to paragraph (1)(B), to deny admission to the program or 
    federally assisted housing to any household based on a pattern of 
    illegal use of a controlled substance or a pattern of abuse of 
    alcohol by a household member, a public housing agency or an owner 
    may consider whether such household member--
            (A) has successfully completed a supervised drug or alcohol 
        rehabilitation program (as applicable) and is no longer 
        engaging in the illegal use of a controlled substance or abuse 
        of alcohol (as applicable);
            (B) has otherwise been rehabilitated successfully and is no 
        longer engaging in the illegal use of a controlled substance or 
        abuse of alcohol (as applicable); or
            (C) is participating in a supervised drug or alcohol 
        rehabilitation program (as applicable) and is no longer 
        engaging in the illegal use of a controlled substance or abuse 
        of alcohol (as applicable).
    (c) Authority To Deny Admission To Criminal Offenders..--Except as 
provided in subsections (a) and (b) of this section and in addition to 
any other authority to screen applicants, in selecting among applicants 
for admission to the program or to federally assisted housing, if the 
public housing agency or owner of such housing (as applicable) 
determines that an applicant or any member of the applicant's household 
is or was, during a reasonable time preceding the date when the 
applicant household would otherwise be selected for admission, engaged 
in any drug-related or violent criminal activity or other criminal 
activity which would adversely affect the health, safety, or right to 
peaceful enjoyment of the premises by other residents, the owner, or 
public housing agency employees, the public housing agency or owner 
may--
        (1) deny such applicant admission to the program or to 
    federally assisted housing; and
        (2) after the expiration of the reasonable period beginning 
    upon such activity, require the applicant, as a condition of 
    admission to the program or to federally assisted housing, to 
    submit to the public housing agency or owner evidence sufficient 
    (as the Secretary shall by regulation provide) to ensure that the 
    individual or individuals in the applicant's household who engaged 
    in criminal activity for which denial was made under paragraph (1) 
    have not engaged in any criminal activity during such reasonable 
    period.
    (d) Conforming Amendments.--The United States Housing Act of 1937 
is amended--
        (1) in section 6--
            (A) by striking subsection (r); and
            (B) by redesignating subsections (s), (t), and (u) (as 
        added by the preceding provisions of this Act) as subsections 
        (r), (s), and (t), respectively; and
        (2) in section 16 (42 U.S.C. 1437n), by striking subsection 
    (e).

SEC. 577. TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL DRUG USERS 
              AND ALCOHOL ABUSERS IN FEDERALLY ASSISTED HOUSING.

    (a) In General.--Notwithstanding any other provision of law, a 
public housing agency or an owner of federally assisted housing (as 
applicable), shall establish standards or lease provisions for 
continued assistance or occupancy in federally assisted housing that 
allow the agency or owner (as applicable) to terminate the tenancy or 
assistance for any household with a member--
        (1) who the public housing agency or owner determines is 
    illegally using a controlled substance; or
        (2) whose illegal use (or pattern of illegal use) of a 
    controlled substance, or whose abuse (or pattern of abuse) of 
    alcohol, is determined by the public housing agency or owner to 
    interfere with the health, safety, or right to peaceful enjoyment 
    of the premises by other residents.
    (b) Consideration of Rehabilitation.--In determining whether, 
pursuant to subsection (a)(2), to terminate tenancy or assistance to 
any household based on a pattern of illegal use of a controlled 
substance or a pattern of abuse of alcohol by a household member, a 
public housing agency or an owner may consider whether such household 
member--
        (1) has successfully completed a supervised drug or alcohol 
    rehabilitation program (as applicable) and is no longer engaging in 
    the illegal use of a controlled substance or abuse of alcohol (as 
    applicable);
        (2) has otherwise been rehabilitated successfully and is no 
    longer engaging in the illegal use of a controlled substance or 
    abuse of alcohol (as applicable); or
        (3) is participating in a supervised drug or alcohol 
    rehabilitation program (as applicable) and is no longer engaging in 
    the illegal use of a controlled substance or abuse of alcohol (as 
    applicable).

SEC. 578. INELIGIBILITY OF DANGEROUS SEX OFFENDERS FOR ADMISSION TO 
              PUBLIC HOUSING.

    (a) In General.--Notwithstanding any other provision of law, an 
owner of federally assisted housing shall prohibit admission to such 
housing for any household that includes any individual who is subject 
to a lifetime registration requirement under a State sex offender 
registration program.
    (b) Obtaining information.--As provided in regulations issued by 
the Secretary to carry out this section--
        (1) a public housing agency shall carry out criminal history 
    background checks on applicants for federally assisted housing and 
    make further inquiry with State and local agencies as necessary to 
    determine whether an applicant for federally assisted housing is 
    subject to a lifetime registration requirement under a State sex 
    offender registration program; and
        (2) State and local agencies responsible for the collection or 
    maintenance of criminal history record information or information 
    on persons required to register as sex offenders shall comply with 
    requests of public housing agencies for information pursuant to 
    this section.
    (c) Requests By Owners For PHA's To Obtain Information.--A public 
housing agency may take any action under subsection (b) regarding 
applicants for, or tenants of, federally assisted housing other than 
federally assisted housing described in subparagraph (A) or (B) of 
section 579(a)(2), but only if the housing is located within the 
jurisdiction of the agency and the owner of such housing has requested 
that the agency take such action on behalf of the owner. Upon such a 
request by the owner, the agency shall take the action requested under 
subsection (b). The agency may not make any information obtained 
pursuant to the action under subsection (b) available to the owner but 
shall perform determinations for the owner regarding screening, lease 
enforcement, and eviction based on criteria supplied by the owner.
    (d) Opportunity To Dispute.--Before an adverse action is taken with 
respect to an applicant for federally assisted housing on the basis 
that an individual is subject to a lifetime registration requirement 
under a State sex offender registration program, the public housing 
agency obtaining the record shall provide the tenant or applicant with 
a copy of the registration information and an opportunity to dispute 
the accuracy and relevance of that information.
    (e) Fee.--A public housing agency may be charged a reasonable fee 
for taking actions under subsection (b). In the case of a public 
housing agency taking actions on behalf of another owner of federally 
assisted housing pursuant to subsection (c), the agency may pass such 
fee on to the owner making the request and may charge an additional 
reasonable fee for making the request on behalf of the owner.
    (f) Records Management.--Each public housing agency shall establish 
and implement a system of records management that ensures that any 
criminal record or information regarding a lifetime registration 
requirement under a State sex offender registration program that is 
obtained under this section by the public housing agency is--
        (1) maintained confidentially;
        (2) not misused or improperly disseminated; and
        (3) destroyed, once the purpose for which the record was 
    requested has been accomplished.

SEC. 579. DEFINITIONS.

    (a) Definitions.--For purposes of this subtitle, the following 
definitions shall apply:
        (1) Drug-related criminal activity.--The term ``drug-related 
    criminal activity'' has the meaning given the term in section 3(b) 
    of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
        (2) Federally assisted housing.--The term ``federally assisted 
    housing'' means a dwelling unit--
            (A) in public housing (as such term is defined in section 
        3(b) of the United States Housing Act of 1937 (42 U.S.C. 
        1437a));
            (B) assisted with tenant-based assistance under section 8 
        of the United States Housing Act of 1937;
            (C) in housing that is provided project-based assistance 
        under section 8 of the United States Housing Act of 1937, 
        including new construction and substantial rehabilitation 
        projects;
            (D) in housing that is assisted under section 202 of the 
        Housing Act of 1959 (as amended by section 801 of the Cranston-
        Gonzalez National Affordable Housing Act);
            (E) in housing that is assisted under section 202 of the 
        Housing Act of 1959, as such section existed before the 
        enactment of the Cranston-Gonzalez National Affordable Housing 
        Act;
            (F) in housing that is assisted under section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act;
            (G) in housing financed by a loan or mortgage insured under 
        section 221(d)(3) of the National Housing Act that bears 
        interest at a rate determined under the proviso of section 
        221(d)(5) of such Act;
            (H) in housing insured, assisted, or held by the Secretary 
        or a State or State agency under section 236 of the National 
        Housing Act; or
            (I) in housing assisted under section 514 or 515 of the 
        Housing Act of 1949.
        (3) Owner.--The term ``owner'' means, with respect to federally 
    assisted housing, the entity or private person (including a 
    cooperative or public housing agency) that has the legal right to 
    lease or sublease dwelling units in such housing.

               Subtitle G--Repeals and Related Provisions

SEC. 581. ANNUAL REPORT.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, and annually thereafter, the Secretary shall 
submit a report to the Congress on--
        (1) the impact of the amendments made by this Act on--
            (A) the demographics of public housing residents and 
        families receiving tenant-based assistance under the United 
        States Housing Act of 1937; and
            (B) the economic viability of public housing agencies; and
        (2) the effectiveness of the rent policies established by this 
    Act and the amendments made by this Act on the employment status 
    and earned income of public housing residents.
    (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 582. REPEALS RELATING TO PUBLIC HOUSING AND SECTION 8 PROGRAMS.

    (a) In General.--The following provisions of law are hereby 
repealed:
        (1) Public housing rent waivers for police.--Section 519 of the 
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437a-
    1).
        (2) Treatment of certificate and voucher holders.--Subsection 
    (c) of section 183 of the Housing and Community Development Act of 
    1987 (42 U.S.C. 1437f note).
        (3) Report regarding fair housing objectives.--Section 153 of 
    the Housing and Community Development Act of 1992 (42 U.S.C. 1437f 
    note).
        (4) Miscellaneous provisions.--Subsections (b)(1) and (c) of 
    section 326 of the Housing and Community Development Amendments of 
    1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 1437f note).
        (5) Payment for development managers.--Section 329A of the 
    Housing and Community Development Amendments of 1981 (42 U.S.C. 
    1437j-1).
        (6) Public housing childhood development.--Section 222 of the 
    Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701z-6 
    note).
        (7) Indian housing childhood development.--Section 518 of the 
    Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 1701z-
    6 note).
        (8) Public housing comprehensive transition demonstration.--
    Section 126 of the Housing and Community Development Act of 1987 
    (42 U.S.C. 1437f note).
        (9) Public housing one-stop perinatal services demonstration.--
    Section 521 of the Cranston-Gonzalez National Affordable Housing 
    Act (42 U.S.C. 1437t note).
        (10) Public housing mincs demonstration.--Section 522 of the 
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f 
    note).
        (11) Public housing energy efficiency demonstration.--Section 
    523 of the Cranston-Gonzalez National Affordable Housing Act (42 
    U.S.C. 1437g note).
        (12) Omaha homeownership demonstration.--Section 132 of the 
    Housing and Community Development Act of 1992 (Public Law 102-550; 
    106 Stat. 3712).
        (13) Public and assisted housing youth sports programs.--
    Section 520 of the Cranston-Gonzalez National Affordable Housing 
    Act (42 U.S.C. 11903a).
        (14) Multifamily financing.--The penultimate sentence of 
    section 302(b)(2) of the National Housing Act (12 U.S.C. 
    1717(b)(2)) and the penultimate sentence of section 305(a)(2) of 
    the Emergency Home Finance Act of 1970 (12 U.S.C. 1454(a)(2)).
        (15) Special projects for elderly or handicapped families.--
    Section 209 of the Housing and Community Development Act of 1974 
    (42 U.S.C. 1438).
    (b) Savings Provision.--Except to the extent otherwise provided in 
this Act, the repeals made by subsection (a) shall not affect any 
legally binding obligations entered into before the effective date 
under section 503(a) of this Act.

SEC. 583. PUBLIC HOUSING FLEXIBILITY IN CHAS.

    Section 105(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705(b)) is amended--
        (1) by transferring and inserting the flush material that 
    precedes the first paragraph that is designated as (17) (relating 
    to abbreviated housing strategies and consisting of 2 sentences) to 
    the end of the subsection (following the last numbered paragraph);
        (2) by redesignating the second paragraph that is designated as 
    paragraph (17) (as added by section 681(2) of the Housing and 
    Community Development Act of 1992 (Public Law 102-550; 106 Stat. 
    3830)) as paragraph (20);
        (3) by redesignating paragraph (17) (as added by section 
    220(b)(3) of the Housing and Community Development Act of 1992 
    (Public Law 102-550; 106 Stat. 3761)) as paragraph (19);
        (4) in the second paragraph designated as paragraph (16) (as so 
    designated by section 220(c)(1) of the Housing and Community 
    Development Act of 1992 (Public Law 102-550; 106 Stat. 3762))--
            (A) by striking ``and'' at the end; and
            (B) by striking ``(16)'' and inserting ``(18)'';
        (5) in paragraph (16) (as added by section 1014(3) of the 
    Housing and Community Development Act of 1992 (Public Law 102-550; 
    106 Stat. 3908))--
            (A) by striking the period at the end and inserting a 
        semicolon; and
            (B) by striking ``(16)'' and inserting ``(17)'';
        (6) by redesignating paragraphs (11) through (15) as paragraphs 
    (12) through (16), respectively; and
        (7) by inserting after paragraph (10) the following new 
    paragraph:
        ``(11) describe the manner in which the plan of the 
    jurisdiction will help address the needs of public housing;''.

SEC. 584. USE OF AMERICAN PRODUCTS.

    (a) Purchase of American-Made Equipment and Products.--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) Notice Requirement.--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.
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 585. GAO STUDY ON HOUSING ASSISTANCE PROGRAM COSTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study that provides an objective and independent accounting 
and analysis of the full cost to the Federal Government, public housing 
agencies, State and local governments, and other entities, per assisted 
household, of the Federal assisted housing programs, taking into 
account the qualitative differences among Federal assisted housing 
programs in accordance with applicable standards of the Department of 
Housing and Urban Development.
    (b) Contents.--The study under this section shall--
        (1) analyze the full cost to the Federal Government, public 
    housing agencies, State and local governments, and other parties, 
    per assisted household, of the Federal assisted housing programs, 
    in accordance with generally accepted accounting principles, and 
    shall conduct the analysis on a nationwide and regional basis and 
    in a manner such that accurate per unit cost comparisons may be 
    made between Federal assisted housing programs, including grants, 
    direct subsidies, tax concessions, Federal mortgage insurance 
    liability, periodic renovation and rehabilitation, and 
    modernization costs, demolition costs, and other ancillary costs 
    such as security; and
        (2) measure and evaluate qualitative differences among Federal 
    assisted housing programs in accordance with applicable standards 
    of the Department of Housing and Urban Development.
    (c) Prohibition of Recommendations.--In conducting the study under 
this section and reporting under subsection (e), the Comptroller 
General may not make any recommendations regarding Federal housing 
policy.
    (d) Federal Assisted Housing Programs.--For purposes of this 
section, the term ``Federal assisted housing programs'' means--
        (1) the public housing program under the United States Housing 
    Act of 1937, except that the study under this section shall 
    differentiate between and compare the development and construction 
    of new public housing and the assistance of existing public housing 
    structures;
        (2) the certificate program for rental assistance under section 
    8(b)(1) of the United States Housing Act of 1937;
        (3) the voucher program for rental assistance under section 
    8(o) of the United States Housing Act of 1937;
        (4) the programs for project-based assistance under section 8 
    of the United States Housing Act of 1937;
        (5) the rental assistance payments program under section 
    521(a)(2)(A) of the Housing Act of 1949;
        (6) the program for housing for the elderly under section 202 
    of the Housing Act of 1959;
        (7) the program for housing for persons with disabilities under 
    section 811 of the Cranston-Gonzalez National Affordable Housing 
    Act;
        (8) the program for financing housing by a loan or mortgage 
    insured under section 221(d)(3) of the National Housing Act that 
    bears interest at a rate determined under the proviso of section 
    221(d)(5) of such Act;
        (9) the program under section 236 of the National Housing Act;
        (10) the program for construction or substantial rehabilitation 
    under section 8(b)(2) of the United States Housing Act of 1937, as 
    in effect before October 1, 1983; and
        (11) any other program for housing assistance administered by 
    the Secretary of Housing and Urban Development or the Secretary of 
    Agriculture, under which occupancy in the housing assisted or 
    housing assistance provided is based on income, as the Comptroller 
    General may determine.
    (e) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Congress a final report which shall contain the results of the study 
under this section, including the analysis and estimates required under 
subsection (b).
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 586. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION 
              ACT OF 1990.

    (a) Short Title.--This section may be cited as the ``Public and 
Assisted Housing Drug Elimination Program Amendments of 1998''.
    (b) Findings.--Section 5122 of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11901) is amended--
        (1) in paragraph (2), by inserting ``or violent'' after ``drug-
    related'';
        (2) in paragraph (4)--
            (A) by inserting ``and violent'' after ``drug-related''; 
        and
            (B) by striking ``and'' at the end;
        (3) in paragraph (5), by striking the period at the end and 
    inserting a semicolon; and
        (4) by adding at the end the following new paragraphs:
        ``(6) the Federal Government should provide support for 
    effective safety and security measures to combat drug-related and 
    violent crime, primarily in and around public housing projects with 
    severe crime problems;
        ``(7) closer cooperation should be encouraged between public 
    and assisted housing managers, local law enforcement agencies, and 
    residents in developing and implementing anti-crime programs; and
        ``(8) anti-crime strategies should be improved through the 
    expansion of community-oriented policing initiatives.''.
    (c) Authority to Make Grants.--Section 5123 of the Anti-Drug Abuse 
Act of 1988 (42 U.S.C. 11902) is amended--
        (1) by inserting ``(a) In General.--'' before ``The'';
        (2) by striking ``tribally designated housing entities'' and 
    inserting ``recipients of assistance under the Native American 
    Housing Assistance and Self-Determination Act of 1996'';
        (3) by inserting ``and violent'' after ``drug-related''; and
        (4) by adding at the end the following new subsection:
    ``(b) Consortia.--Subject to terms and conditions established by 
the Secretary, public housing agencies may form consortia for purposes 
of applying for grants under this chapter.''.
    (d) Eligible Activities.--Section 5124 of the Anti-Drug Abuse Act 
of 1988 (42 U.S.C. 11903) is amended--
        (1) in subsection (a)--
            (A) in paragraph (4)(A), by striking ``drug-related crime 
        on or about'' and inserting ``drug-related or violent crime in 
        and around'';
            (B) in paragraph (6), by striking ``and'' at the end;
            (C) in paragraph (7)--
                (i) by striking ``tribally designated housing entity'' 
            and inserting ``recipient of assistance under the Native 
            American Housing Assistance and Self-Determination Act of 
            1996''; and
                (ii) by striking the period at the end and inserting 
            ``; and''; and
            (8) by adding at the end the following new paragraph:
        ``(8) sports programs and sports activities that serve 
    primarily youths from public or other federally assisted low-income 
    housing projects and are operated in conjunction with, or in 
    furtherance of, an organized program or plan designed to reduce or 
    eliminate drugs and drug-related problems in and around such 
    projects.''; and
        (2) in subsection (b)--
            (A) in the matter preceding paragraph (1), by striking 
        ``drug-related crime in'' and inserting ``drug-related crime in 
        and around''; and
            (B) in paragraph (2), by striking ``drug-related activity 
        at'' and inserting ``drug-related or violent activity in or 
        around''.
    (e) Applications.--Section 5125 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11904) is amended--
        (1) in subsection (a)--
            (A) by striking ``tribally designated housing entity'' and 
        inserting ``recipient of assistance under the Native American 
        Housing Assistance and Self-Determination Act of 1996'';
            (B) by striking ``crime on the premises'' and inserting 
        ``or violent crime in and around''; and
            (C) by inserting before the period at the end the 
        following: ``, which plan shall be coordinated with and may be 
        included in the public housing agency plan submitted to the 
        Secretary pursuant to section 5A of the United States Housing 
        Act of 1937'';
        (2) in subsection (b)--
            (A) in the matter that precedes paragraph (1), by striking 
        ``Except as'' and all that follows through ``on--'' and 
        inserting the following: ``The Secretary shall approve 
        applications under subsection (b) that are not subject to a 
        preference under subsection (b)(2)(A) on the basis of 
        thresholds or criteria such as--''; and
            (B) in paragraph (1), by striking ``crime problem in'' and 
        inserting ``or violent crime problem in and around'';
        (3) in subsection (c)--
            (A) in the matter preceding paragraph (1), by striking 
        ``subsection (b)'' and inserting ``subsection (c)''; and
            (B) in paragraph (2), by inserting ``or violent'' after 
        ``drug-related'' each place it appears;
        (4) in subsection (d), by striking ``subsection (b)'' and 
    inserting ``subsection (c)'';
        (5) by redesignating subsections (b) through (d) as subsections 
    (c) through (e), respectively; and
        (6) by inserting after subsection (a) the following new 
    subsection:
    ``(b) One-Year Renewable Grants.--
        ``(1) In general.--An eligible applicant that is a public 
    housing agency may apply for a 1-year grant under this chapter 
    that, subject to the availability of appropriated amounts, shall be 
    renewed annually for a period of not more than 4 additional years, 
    except that such renewal shall be contingent upon the Secretary 
    finding, upon an annual or more frequent review, that the grantee 
    agency is performing under the terms of the grant and applicable 
    laws in a satisfactory manner and meets such other requirements as 
    the Secretary may prescribe. The Secretary may adjust the amount of 
    any grant received or renewed under this paragraph to take into 
    account increases or decreases in amounts appropriated for these 
    purposes or such other factors as the Secretary determines to be 
    appropriate.
        ``(2) Eligibility and preference.--The Secretary may not 
    provide assistance under this chapter to an applicant that is a 
    public housing agency unless--
            ``(A) the agency will use the grants to continue or expand 
        activities eligible for assistance under this chapter, as in 
        effect immediately before the effective date under section 
        503(a) of the Quality Housing and Work Responsibility Act of 
        1998, in which case the Secretary shall provide preference to 
        such applicant; except that preference under this subparagraph 
        shall not preclude selection by the Secretary of other 
        meritorious applications that address urgent or serious crime 
        problems nor be construed to require continuation of activities 
        determined by the Secretary to be unworthy of continuation; or
            ``(B) the agency is in the class established under 
        paragraph (3).
        ``(3) Pha's having urgent or serious crime problems.--The 
    Secretary shall, by regulations issued after notice and opportunity 
    for public comment, set forth criteria for establishing a class of 
    public housing agencies that have urgent or serious crime problems. 
    The Secretary may reserve a portion of the amount appropriated to 
    carry out this chapter in each fiscal year only for grants for 
    public housing agencies in such class, except that any amounts from 
    such portion reserved that are not obligated to agencies in the 
    class shall be made available only for agencies that are subject to 
    a preference under paragraph (2)(A).
        ``(4) Inapplicability to federally assisted low-income 
    housing.--The provisions of this subsection shall not apply to 
    federally assisted low-income housing.''.
    (f) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11905) is amended by striking paragraph (5) and inserting 
the following new paragraph:
        ``(5) Recipient.--The term `recipient', when used in reference 
    to the Native American Housing Assistance and Self-Determination 
    Act of 1996, has the meaning given such term in section 4 of such 
    Act.''.
    (g) Reports, Monitoring, and Funding.--Chapter 2 of subtitle C of 
title V of the Anti-Drug Abuse Act of 1988 is amended by striking 
sections 5127, 5128, 5129, and 5130 and inserting the following new 
sections:

``SEC. 5127. REPORTS.

    ``(a) Grantee Reports.--The Secretary shall require grantees under 
this chapter to provide periodic reports that include the obligation 
and expenditure of grant funds, the progress made by the grantee in 
implementing the plan described in section 5125(a), and any change in 
the incidence of drug-related crime in projects assisted under this 
chapter.
    ``(b) HUD Reports.--The Secretary shall submit a report to the 
Congress not later than 18 months after the date of the enactment of 
the Quality Housing and Work Responsibility Act of 1998 describing the 
system used to distribute funding to grantees under this section, which 
shall include descriptions of--
        ``(1) the methodology used to distribute amounts made available 
    under this chapter among public housing agencies, including 
    provisions used to provide for renewals of ongoing programs funded 
    under this chapter; and
        ``(2) actions taken by the Secretary to ensure that amounts 
    made available under this chapter are not used to fund baseline 
    local government services, as described in section 5128(b).
    ``(c) Notice of Funding Awards.--The Secretary shall cause to be 
published in the Federal Register notice of all grant awards made 
pursuant to this chapter, which shall identify the grantees and the 
amount of the grants. Such notice shall be published not less 
frequently than annually.

``SEC. 5128. MONITORING.

    ``(a) In General.--The Secretary shall audit and monitor the 
programs funded under this chapter to ensure that assistance provided 
under this chapter is administered in accordance with the provisions of 
this chapter.
    ``(b) Prohibition of Funding Baseline Services.--
        ``(1) In general.--Amounts provided under this chapter may not 
    be used to reimburse or support any local law enforcement agency or 
    unit of general local government for the provision of services that 
    are included in the baseline of services required to be provided by 
    any such entity pursuant to a local cooperation agreement under 
    section 5(e)(2) of the United States Housing Act of 1937 or any 
    provision of an annual contributions contract for payments in lieu 
    of taxation pursuant to section 6(d) of such Act.
        ``(2) Description.--Each public housing agency that receives 
    grant amounts under this chapter shall describe, in the report 
    under section 5127(a), such baseline of services for the unit of 
    general local government in which the jurisdiction of the agency is 
    located.
    ``(c) Enforcement.--The Secretary shall provide for the effective 
enforcement of this section, which may include the use of on-site 
monitoring, independent public audit requirements, certification by 
local law enforcement or local government officials regarding the 
performance of baseline services referred to in subsection (b), and 
entering into agreements with the Attorney General to achieve 
compliance, and verification of compliance, with the provisions of this 
chapter.

``SEC. 5129. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this chapter $310,000,000 for fiscal year 1999, and such sums as 
may be necessary for fiscal years 2000, 2001, 2002, and 2003.
    ``(b) Set-Aside for Federally Assisted Low-Income Housing.--Of any 
amounts made available in any fiscal year to carry out this chapter not 
more than 6.25 percent shall be available for grants for federally 
assisted low-income housing.
    ``(c) Set-Aside for Technical Assistance and Program Oversight.--Of 
any amounts appropriated in any fiscal year to carry out this chapter, 
amounts shall be available to the extent provided in appropriations 
Acts to provide training, technical assistance, contract expertise, 
program oversight, program assessment, execution, and other assistance 
for or on behalf of public housing agencies, recipients of assistance 
under the Native American Housing Assistance and Self-Determination Act 
of 1996, resident organizations, and officials and employees of the 
Department (including training and the 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 and to 
other eligible grantees). Assistance and other activities carried out 
using amounts made available under this subsection may be provided 
directly or indirectly by grants, contracts, or cooperative 
agreements.''.

SEC. 587. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.

    (a) Requirement.--The Secretary of Housing and Urban Development 
shall investigate all security contracts awarded by grantees under the 
Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
11901 et seq.) that are public housing agencies that own or operate 
more than 4,500 public housing dwelling units--
        (1) to determine whether the contractors under such contracts 
    have complied with all laws and regulations regarding prohibition 
    of discrimination in hiring practices;
        (2) to determine whether such contracts were awarded in 
    accordance with the applicable laws and regulations regarding the 
    award of such contracts;
        (3) to determine how many such contracts were awarded under 
    emergency contracting procedures; and
        (4) to evaluate the effectiveness of the contracts.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall complete the investigation 
required under subsection (a) and submit a report to the Congress 
regarding the findings under the investigation. With respect to each 
such contract, the report shall (1) state whether the contract was made 
and is operating, or was not made or is not operating, in full 
compliance with applicable laws and regulations, and (2) for each 
contract that the Secretary determines is in such compliance issue a 
certification of such compliance by the Secretary of Housing and Urban 
Development.
    (c) Actions.--For each contract that is described in the report 
under subsection (b) as not made or not operating in full compliance 
with applicable laws and regulations, the Secretary of Housing and 
Urban Development shall promptly take any actions available under law 
or regulation that are necessary--
        (1) to bring such contract into compliance; or
        (2) to terminate the contract.
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 588. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT RELOCATION 
              ACTIVITIES.

    Section 105 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305) is amended by adding at the end the following new 
subsection:
    ``(h) Prohibition on Use of Assistance for Employment Relocation 
Activities.--Notwithstanding any other provision of law, no amount from 
a grant under section 106 made in fiscal year 1999 or any succeeding 
fiscal year may be used to assist directly in the relocation of any 
industrial or commercial plant, facility, or operation, from 1 area to 
another area, if the relocation is likely to result in a significant 
loss of employment in the labor market area from which the relocation 
occurs.''.

SEC. 589. TREATMENT OF OCCUPANCY STANDARDS.

    (a) Establishment of Policy.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Housing and Urban 
Development shall publish a notice in the Federal Register for effect 
that takes effect upon publication and provides that the specific and 
unmodified standards provided in the March 20, 1991, Memorandum from 
the General Counsel of the Department of Housing and Urban Development 
to all Regional Counsel shall be the policy of the Department of 
Housing and Urban Development with respect to complaints of 
discrimination under the Fair Housing Act (42 U.S.C. 3601 et seq.) on 
the basis of familial status which involve an occupancy standard 
established by a housing provider.
    (b) Prohibition of National Standard.--The Secretary of Housing and 
Urban Development shall not directly or indirectly establish a national 
occupancy standard.

SEC. 590. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

    (a) In General.--The Secretary of Housing and Urban Development 
shall, for not less than 10 jurisdictions that are metropolitan cities 
or urban counties for purposes of title I of the Housing and Community 
Development Act of 1974, grant exceptions not later than 90 days after 
the date of the enactment of this Act for such jurisdictions that 
provide that--
        (1) for purposes of the HOME investment partnerships program 
    under title II of the Cranston-Gonzalez National Affordable Housing 
    Act, the limitation based on percentage of median income that is 
    applicable under section 104(10), 214(1)(A), or 215(a)(1)(A) for 
    any area of the jurisdiction shall be the numerical percentage that 
    is specified in such section; and
        (2) for purposes of the community development block grant 
    program under title I of the Housing and Community Development Act 
    of 1974, the limitation based on percentage of median income that 
    is applicable pursuant to section 102(a)(20) for any area within 
    the State or unit of general local government shall be the 
    numerical percentage that is specified in subparagraph (A) of such 
    section.
    (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC 591. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.

    (a) In General.--Not later than 12 months after the date of the 
enactment of this Act, the Inspector General of the Department of 
Housing and Urban Development shall submit to the Congress a report, 
which shall include information relating to--
        (1) with respect to 1- to 4-family dwellings owned by the 
    Department of Housing and Urban Development, on a monthly average 
    basis--
            (A) the total number of units in those dwellings;
            (B) the number and percentage of units in those dwellings 
        that are unoccupied, and their average period of vacancy, and 
        the number and percentage of units in those dwellings that have 
        been unoccupied for more than 1 year, as of that date; and
            (C) the number and percentage of units in those projects 
        that are determined by the Inspector General to be substandard, 
        based on any--
                (i) lack of hot or cold piped water;
                (ii) lack of working toilets;
                (iii) regular and prolonged breakdowns in heating;
                (iv) dangerous electrical problems;
                (v) unsafe hallways or stairways;
                (vi) leaking roofs, windows, or pipes;
                (vii) open holes in walls and ceilings; and
                (viii) indications of rodent infestation; and
        (2) with respect to multifamily housing projects (as that term 
    is defined in section 203 of the Housing and Community Development 
    Amendments of 1978) owned by the Department of Housing and Urban 
    Development on a monthly average basis--
            (A) the total number of units in those projects;
            (B) the number and percentage of units in those projects 
        that are unoccupied, and their average period of vacancy, and 
        the number and percentage of units in those projects that have 
        been unoccupied for more than 1 year, as of that date; and
            (C) the number and percentage of units in those projects 
        that are determined by the Inspector General to be substandard, 
        based on any--
                (i) lack of hot or cold piped water;
                (ii) lack of working toilets;
                (iii) regular and prolonged breakdowns in heating;
                (iv) dangerous electrical problems;
                (v) unsafe hallways or stairways;
                (vi) leaking roofs, windows, or pipes;
                (vii) open holes in walls and ceilings; and
                (viii) indications of rodent infestation; and
        (3) the Department's plans and operations to address vacancies 
    and substandard physical conditions described in paragraphs (1) and 
    (2).
    (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 592. USE OF ASSISTED HOUSING BY ALIENS.

    (a) In General.--Section 214 of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a) is amended--
        (1) in subsection (b)(2), by striking ``Secretary of Housing 
    and Urban Development'' and inserting ``applicable Secretary'';
        (2) in subsection (c)(1)(B), by moving clauses (ii) and (iii) 2 
    ems to the left;
        (3) in subsection (d)--
            (A) in paragraph (1)(A)--
                (i) by striking ``Secretary of Housing and Urban 
            Development'' and inserting ``applicable Secretary''; and
                (ii) by striking ``the Secretary'' and inserting ``the 
            applicable Secretary'';
            (B) in paragraph (2), in the matter following subparagraph 
        (B)--
                (i) by inserting ``applicable'' before ``Secretary''; 
            and
                (ii) by moving such matter (as so amended by clause 
            (i)) 2 ems to the right;
            (C) in paragraph (4)(B)(ii), by inserting ``applicable'' 
        before ``Secretary'';
            (D) in paragraph (5), by striking ``the Secretary'' and 
        inserting ``the applicable Secretary''; and
            (E) in paragraph (6), by inserting ``applicable'' before 
        ``Secretary'';
        (4) in subsection (h) (as added by section 576 of the Illegal 
    Immigration Reform and Immigrant Responsibility Act of 1996 
    (division C of Public Law 104-208))--
            (A) in paragraph (1)--
                (i) by striking ``Except in the case of an election 
            under paragraph (2)(A), no'' and inserting ``No'';
                (ii) by striking ``this section'' and inserting 
            ``subsection (d)''; and
                (iii) by inserting ``applicable'' before ``Secretary''; 
            and
            (B) in paragraph (2)--
                (i) by striking subparagraph (A) and inserting the 
            following new subparagraph:
            ``(A) may, notwithstanding paragraph (1) of this 
        subsection, elect not to affirmatively establish and verify 
        eligibility before providing financial assistance''; and
                (ii) in subparagraph (B), by striking ``in complying 
            with this section'' and inserting ``in carrying out 
            subsection (d)''; and
        (5) by redesignating subsection (h) (as amended by paragraph 
    (4)) as subsection (i).
    (b) Effective Date.--The amendments made by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 593. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE MORTGAGE 
              PROGRAM.

    (a) Mortgage Insurance Authority.--Section 255(g) of the National 
Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking the first 2 
sentences and inserting the following new sentence: ``The aggregate 
number of mortgages insured under this section may not exceed 
150,000.''.
    (b) Other Approaches to Consumer Education.--Section 255(f) of the 
National Housing Act (12 U.S.C. 1715z-20(f)) is amended by adding after 
paragraph (5) the following:
``The Secretary shall consult with consumer groups, industry 
representatives, representatives of counseling organizations, and other 
interested parties to identify alternative approaches to providing 
consumer information required by this subsection that may be feasible 
and desirable for home equity conversion mortgages insured under this 
section and other types of reverse mortgages. The Secretary may, in 
lieu of providing the consumer education required by this subsection, 
adopt alternative approaches to consumer education that may be 
developed as a result of such consultations, but only if the 
alternative approaches provide all of the information specified in this 
subsection.''.
    (c) Funding for Counseling and Consumer Education and Outreach.--
Section 255 of the National Housing Act (12 U.S.C. 1715z-20) is amended 
by adding at the end the following new subsection:
    ``(l) Funding for Counseling and Consumer Education and Outreach.--
Of any amounts made available for any of fiscal years 2000 through 2003 
for housing counseling under section 106 of the Housing and Urban 
Development Act of 1968, up to a total of $1,000,000 shall be available 
to the Secretary in each such fiscal year, in such amounts as the 
Secretary determines appropriate, for the following purposes in 
connection with home equity conversion mortgages insured under this 
section:
        ``(1) Counseling.--For housing counseling authorized by section 
    106 of the Housing and Urban Development Act of 1968.
        ``(2) Consumer education.--For transfer to the departmental 
    salaries and expenses account for consumer education and outreach 
    activities.''.
    (d) Conforming Amendments.--Section 255 of the National Housing Act 
(12 U.S.C. 1715z-20) is amended--
        (1) in the section heading, by striking ``demonstration program 
    of'';
        (2) in subsections (a) and (i)(1), by striking 
    ``demonstration'' each place it appears;
        (3) in subsection (a)--
            (A) in paragraph (1), by inserting ``and'' after the 
        semicolon at the end;
            (B) in paragraph (2), by striking ``; and'' at the end and 
        inserting a period; and
            (C) by striking paragraph (3);
        (4) by striking subsection (k) (relating to reports to 
    Congress); and
        (5) by redesignating subsection (l) (as added by subsection (c) 
    of this section) as subsection (k).
    (e) Disclosure Requirements and Prohibition of Funding of 
Unnecessary or Excessive Costs.--
        (1) In general.--Section 255(d) of the National Housing Act (12 
    U.S.C. 1715z-20(d)) is amended--
            (A) in paragraph (2)--
                (i) in subparagraph (B), by striking ``and'' at the 
            end;
                (ii) by redesignating subparagraph (C) as subparagraph 
            (D); and
                (iii) by inserting after subparagraph (B) the 
            following:
            ``(C) has received full disclosure, as prescribed by the 
        Secretary, of all costs charged to the mortgagor, including 
        costs of estate planning, financial advice, and other services 
        that are related to the mortgage but are not required to obtain 
        the mortgage, which disclosure shall clearly state which 
        charges are required to obtain the mortgage and which are not 
        required to obtain the mortgage; and''
            (B) in paragraph (9)(F), by striking ``and'';
            (C) in paragraph (10), by striking the period at the end 
        and inserting ``; and''; and
            (D) by adding at the end the following:
        ``(11) have been made with such restrictions as the Secretary 
    determines to be appropriate to ensure that the mortgagor does not 
    fund any unnecessary or excessive costs for obtaining the mortgage, 
    including any costs of estate planning, financial advice, or other 
    related services.''.
        (2) Implementation.--
            (A) Notice.--The Secretary of Housing and Urban Development 
        shall, by interim notice, implement the amendments made by 
        paragraph (1) in an expeditious manner, as determined by the 
        Secretary. Such notice shall not be effective after the date of 
        the effectiveness of the final regulations issued under 
        subparagraph (B) of this paragraph.
            (B) Regulations.--The Secretary shall, not later than the 
        expiration of the 90-day period beginning on the date of the 
        enactment of this Act, issue final regulations to implement the 
        amendments made by paragraph (1). Such regulations shall be 
        issued only after notice and opportunity for public comment 
        pursuant to the provisions of section 553 of title 5, United 
        States Code (notwithstanding subsections (a)(2) and (b)(3)(B) 
        of such section).
    (f) Effective Date.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 594. HOUSING COUNSELING.

    (a) Extension of Emergency Homeownership Counseling.--Section 
106(c)(9) of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701x(c)(9)) is amended by striking ``September 30, 1994'' and 
inserting ``September 30, 2000''.
    (b) Notification of Delinquency on Veterans Home Loans.--
    Subparagraph (C) of section 106(c)(5) of the Housing and Urban 
Development Act of 1968 is amended to read as follows:
            ``(C) Notification.--Notification under subparagraph (A) 
        shall not be required with respect to any loan for which the 
        eligible homeowner pays the amount overdue before the 
        expiration of the 45-day period under subparagraph (B)(ii).''.
    (c) Effective Date.--The amendments made by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 595. NATIVE AMERICAN HOUSING ASSISTANCE.

    (a) Subsidy Layering Certification.--Section 206 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4136) is amended--
        (1) by striking ``certification by the Secretary'' and 
    inserting ``certification by a recipient to the Secretary''; and
        (2) by striking ``any housing project'' and inserting ``the 
    housing project involved''.
    (b) Inclusion of Homebuyer Selection Policies and Criteria.--
Section 207(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4137(b)) is amended--
        (1) by striking ``Tenant Selection.--'' and inserting ``Tenant 
    and Homebuyer Selection.--'';
        (2) in the matter preceding paragraph (1), by inserting ``and 
    homebuyer'' after ``tenant''; and
        (3) in paragraph (3)(A), by inserting ``and homebuyers'' after 
    ``tenants''.
    (c) Repayment of Grant Amounts for Violation of Affordable Housing 
Requirement.--Section 209 of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4139) is amended by striking 
``section 205(2)'' and inserting ``section 205(a)(2)''.
    (d) Amendment to United States Housing Act of 1937.--Section 7 of 
the United States Housing Act of 1937 (42 U.S.C. 1437e) is amended by 
striking subsection (h).
    (e) Miscellaneous.--
        (1) Definition of indian areas.--Section 4(10) of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4103(10)) is amended to read as follows:
        ``(10) Indian area.--The term `Indian area' means the area 
    within which an Indian tribe or a tribally designated housing 
    entity, as authorized by 1 or more Indian tribes, provides 
    assistance under this Act for affordable housing.''.
        ``(2) Cross-reference.--Section 4(12)(C)(i)(II) of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4103(12)(C)(i)(II)) is amended by striking ``section 107'' 
    and inserting ``section 705''.
        (3) Local cooperation agreements.--Section 101(c) of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4111(c)) is amended to read as follows:
    ``(c) Local Cooperation Agreement.--Notwithstanding any other 
provision of this Act, grant amounts provided under this Act on behalf 
of an Indian tribe may not be used for rental or lease-purchase 
homeownership units that are owned by the recipient for the tribe 
unless the governing body of the locality within which the property 
subject to the development activities to be assisted with the grant 
amounts is or will be situated has entered into an agreement with the 
recipient for the tribe providing for local cooperation required by the 
Secretary pursuant to this Act.''.
        (4) Exemption from taxation.--Section 101(d) of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4111(d)) is amended--
            ``(A) by striking the subsection designation and subsection 
        heading and all that follows through the end of paragraph (1) 
        and inserting the following:
    ``(d) Exemption From Taxation.--Notwithstanding any other provision 
of this Act, grant amounts provided under this Act on behalf of an 
Indian tribe may not be used for affordable housing activities under 
this Act for rental or lease-purchase dwelling units developed under 
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or with 
amounts provided under this Act that are owned by the recipient for the 
tribe unless--
        ``(1) such dwelling units (which, in the case of units in a 
    multi-unit project, shall be exclusive of any portions of the 
    project not developed under the United States Housing Act of 1937 
    or with amounts provided under this Act) are exempt from all real 
    and personal property taxes levied or imposed by any State, tribe, 
    city, county, or other political subdivision; and''; and
            (B) in paragraph (2), in the matter preceding subparagraph 
        (A), by inserting ``for the tribe'' after ``the recipient''.
        (5) Submission of indian housing plan.--Section 102(a) of the 
    Native American Housing Assistance and Self-Determination Act of 
    1996 (25 U.S.C. 4112(a)) is amended--
            (A) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (B) in paragraph (1)(A), as so designated by subparagraph 
        (A) of this paragraph, by adding ``or'' at the end;
            (C) by striking ``(2)'' and inserting ``(B)''; and
            (D) by striking ``(3)'' and inserting ``(2)''.
        (6) Clarification.--Section 103(c)(3) of the Native American 
    Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
    4113(c)(3)) is amended by inserting ``not'' before ``prohibited''.
        (7) Applicability of provisions of civil rights.--Section 
    201(b)(5) of the Native American Housing Assistance and Self-
    Determination Act of 1996 (25 U.S.C. 4131(b)(5)) is amended--
            (A) by striking ``Indian tribes'' and inserting ``federally 
        recognized tribes and the tribally designated housing entities 
        of those tribes''; and
            (B) by striking ``under this subsection'' and inserting 
        ``under this Act''.
        (8) Eligibility.--Section 205(a)(1) of the Native American 
    Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
    4135(a)(1)) is amended--
            (A) in subparagraph (A), by striking ``and'' at the end; 
        and
            (B) by striking subparagraph (B) and inserting the 
        following:
            ``(B) in the case of a contract to purchase existing 
        housing, is made available for purchase only by a family that 
        is a low-income family at the time of purchase;
            ``(C) in the case of a lease-purchase agreement for 
        existing housing or for housing to be constructed, is made 
        available for lease-purchase only by a family that is a low-
        income family at the time the agreement is entered into; and
            ``(D) in the case of a contract to purchase housing to be 
        constructed, is made available for purchase only by a family 
        that is a low-income family at the time the contract is entered 
        into; and''.
        (9) Tenant selection.--Section 207(b)(3)(B) of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4137(b)(3)(B)) is amended by striking ``of any rejected 
    applicant of the grounds for any rejection'' and inserting ``to any 
    rejected applicant of that rejection and the grounds for that 
    rejection''.
        (10) Availability of records.--Section 208 of the Native 
    American Housing Assistance and Self-Determination Act of 1996 (25 
    U.S.C. 4138) is amended--
            (A) in subsection (a), by striking ``paragraph (2)'' and 
        inserting ``subsection (b)''; and
            (B) in subsection (b), by striking ``paragraph (1)'' and 
        inserting ``subsection (a)''.
        (11) IHP requirement.--Section 184(b)(2) of the Housing and 
    Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) is 
    amended by striking ``that is under the jurisdiction of an Indian 
    tribe'' and all that follows before the period at the end.
        (12) Authorization of Appropriations.--Section 184(i)(5)(C) of 
    the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
    13a(i)(5)(C)) is amended by striking ``note'' and inserting 
    ``not''.
        (13) Environmental review under the indian housing loan 
    guarantee program.--Section 184 of the Housing and Community 
    Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
            (A) by redesignating subsection (k) as subsection (l); and
            (B) by inserting after subsection (j) the following:
    ``(k) Environmental Review.--For purposes of environmental, review, 
decisionmaking, and action under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) and any other law that furthers the 
purposes of that Act, a loan guarantee under this section shall--
        ``(1) be treated as a grant under the Native American Housing 
    Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et 
    seq.); and
        ``(2) be subject to the regulations promulgated by the 
    Secretary to carry out section 105 of the Native American Housing 
    Assistance and Self-Determination Act of 1996 (25 U.S.C. 4115).''.
        (14) Public availability of information.--
            (A) In general.--Title IV of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161 
        et seq.) is amended by adding at the end the following:

``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

    ``Each recipient shall make any housing plan, policy, or annual 
report prepared by the recipient available to the general public.''.
            (B) Table of contents.--Section 1(b) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 note) is amended in the table of contents by 
        inserting after the item relating to section 407 the following:

``Sec. 408. Public availability of information.''.

        (15) Ineligibility of Indian Tribes.--Section 460 of the 
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
    12899h-1) is amended by striking ``fiscal year 1997'' and inserting 
    ``fiscal year 1998''.
        (16) Treatment of previous amendments.--Section 402 of The 
    Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) is 
    amended by striking subsection (e).
    (f) Effective Date.--The amendments made by this section are made 
and shall apply beginning upon the date of the enactment of this Act.

SEC. 596. CDBG PUBLIC SERVICES CAP.

    (a) In General.--Section 105(a)(8) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking 
``1998'' and inserting ``2000''.
    (b) Effective Date.--The amendment made by this section is made on, 
and shall apply beginning upon, the date of the enactment of this Act.

SEC. 597. MODERATE REHABILITATION PROGRAM.

    (a) Reprogramming.--Notwithstanding any other provision of law, but 
only to the extent specifically provided in advance in a subsequent 
appropriations Act, the Secretary of Housing and Urban Development 
shall reprogram funds under contracts NY36K113004 and NY36K113005 of 
the Department of Housing and Urban Development and shall allocate such 
funds to the City of New Rochelle, New York. Such allocation shall be 
consistent with the requirements of the HOME Investment Partnerships 
Act. This section shall take effect on the date of the enactment of 
this Act.
    (b) Exception Projects.--Section 524(a)(2) of the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended--
        (1) by inserting ``and subject to section 516 of this 
    subtitle'' after ``Notwithstanding paragraph (1)''; and
        (2) by striking ``the base rent adjusted by an operating cost 
    adjustment factor established by the Secretary'' and inserting 
    ``the lesser of existing rents, adjusted by an operating cost 
    adjustment factor established by the Secretary, fair market rents 
    (less any amounts allowed for tenant-purchased utilities), or 
    comparable market rents for the market area''.
    (c) Effective Date.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 598. NATIONAL CITIES IN SCHOOLS PROGRAM.

    From amounts that are or have been recaptured in the Annual 
Contributions for Assisted Housing account, before any rescissions of 
such amounts, $5,000,000, shall be transferred to the National Cities 
in Schools Community Development Program account, to remain available 
until expended, that the Secretary of Housing and Urban Development 
shall make available to carry out the National Cities in Schools 
Community Development Program under section 930 of the Housing and 
Community Development Act of 1992 (Public Law 102-550, 106 Stat. 3672, 
3887). This section shall take effect on the date of the enactment of 
this Act.

SEC. 599. TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS.

    (a) In General.--The last sentence of subsection (a) of section 202 
of the Housing and Community Development Amendments of 1978 (12 U.S.C. 
1715z-1b(a)) is amended by inserting before the period at the end the 
following: ``, or a project which receives project-based assistance 
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) or enhanced vouchers under the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990, the provisions of the Emergency 
Low Income Housing Preservation Act of 1987, or the Multifamily 
Assisted Housing Reform and Affordability Act of 1997''.
    (b) Applicability.--The amendment made by this section is made on, 
and shall apply beginning upon, the date of the enactment of this Act.

SEC. 599A. CLARIFICATION REGARDING RECREATIONAL VEHICLES.

    (a) In General.--Section 603(6) of the Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)) is 
amended by inserting before the semicolon at the end the following: ``; 
and except that such term shall not include any self-propelled 
recreational vehicle''.
    (b) Applicability.--The amendment made by this section is made on, 
and shall apply beginning upon, the date of the enactment of this Act.

SEC. 599B. DETERMINATION OF LOW-INCOME ELIGIBILITY FOR HOMEOWNERSHIP 
              ASSISTANCE.

    (a) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act is amended by striking ``at the time of 
occupancy or at the time funds are invested, whichever is later''.
    (b) Qualification as Affordable Housing.--Section 215(b)(2) of such 
Act is amended to read as follows:
        ``(2) is the principal residence of an owner whose family 
    qualifies as a low-income family--
            ``(A) in the case of a contract to purchase existing 
        housing, at the time of purchase;
            ``(B) in the case of a lease-purchase agreement for 
        existing housing or for housing to be constructed, at the time 
        the agreement is signed; or
            ``(C) in the case of a contract to purchase housing to be 
        constructed, at the time the contract is signed;''.
    (c) Applicability.--The amendments made by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 599C. AMENDMENTS TO RURAL HOUSING PROGRAMS.

    (a) Permanent Extension of Underserved Areas Program.--Section 
509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is 
amended--
        (1) in the first sentence, by striking ``fiscal year 1998'' and 
    inserting ``each fiscal year''; and
        (2) in the second sentence, by striking ``such fiscal year'' 
    and inserting ``each fiscal year''.
    (b) Permanent Extension of Section 515 Program.--
        (1) Authority to make loans.--Section 515(b) of the Housing Act 
    of 1949 (42 U.S.C. 1485(b)(4)) is amended--
            (A) by striking paragraph (4); and
            (B) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (4), (5), and (6), respectively.
        (2) Set-aside for nonprofit entities.--The first sentence of 
    section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) 
    is amended by striking ``fiscal year 1998'' and inserting ``each 
    fiscal year''.
    (c) Loan Guarantee Program for Multifamily Rental Housing in Rural 
Areas.--Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is 
amended--
        (1) in subsection (t), by striking ``fiscal year 1998'' and 
    inserting ``each fiscal year''; and
        (2) by striking subsection (u) and inserting the following new 
    subsection:
    ``(u) Tax-Exempt Financing.--The Secretary may not deny a guarantee 
under this section on the basis that the interest on the loan or on an 
obligation supporting the loan for which a guarantee is sought is 
exempt from inclusion in gross income for purposes of chapter I of the 
Internal Revenue Code of 1986.''.
    (d) Farm Labor Housing Eligibility for Low-Income Housing Tax 
Credit Financing.--The first sentence of section 514(a) of the Housing 
Act of 1949 (42 U.S.C. 1484(a)) is amended by inserting ``, or any 
nonprofit limited partnership in which the general partner is a 
nonprofit entity,'' after ``private nonprofit organization''.
    (e) Optional Conversion of Rental Assistance Payments to Operating 
Subsidy for Migrant Farmworker Projects.--
        (1) In general.--Section 521(a) of the Housing Act of 1949 (42 
    U.S.C. 1490(a)) is amended by adding at the end the following new 
    paragraph:
    ``(5) Operating assistance for migrant farmworker projects.--
        ``(A) Authority.--In the case of housing (and related 
    facilities) for migrant farmworkers provided or assisted with a 
    loan under section 514 or a grant under section 516, the Secretary 
    may, at the request of the owner of the project, use amounts 
    provided for rental assistance payments under paragraph (2) to 
    provide assistance for the costs of operating the project. Any 
    project assisted under this paragraph may not receive rental 
    assistance under paragraph (2).
        ``(B) Amount.--In any fiscal year, the assistance provided 
    under this paragraph for any project shall not exceed an amount 
    equal to 90 percent of the operating costs for the project for the 
    year, as determined by the Secretary. The amount of assistance to 
    be provided for a project under this paragraph shall be an amount 
    that makes units in the project available to migrant farmworkers in 
    the area of the project at rates not exceeding 30 percent of the 
    monthly adjusted incomes of such farmworkers, based on the 
    prevailing incomes of such farmworkers in the area.
        ``(C) Submission of information.--The owner of a project 
    assisted under this paragraph shall be required to provide to the 
    Secretary, at least annually, a budget of operating expenses and 
    estimated rental income, which the Secretary may use to determine 
    the amount of assistance for the project.
        ``(D) Definitions.--For purposes of this paragraph, the 
    following definitions shall apply:
            ``(i) The term `migrant farmworker' has the same meaning 
        given such term in section 516(k)(7).
            ``(ii) The term `operating cost' means expenses incurred in 
        operating a project, including expenses for--
                ``(I) administration, maintenance, repair, and security 
            of the project;
                ``(II) utilities, fuel, furnishings, and equipment for 
            the project; and
                ``(III) maintaining adequate reserve funds for the 
            project.''.
        (2) Conforming amendments.--Title V of the Housing Act of 1949 
    (42 U.S.C. 1471 et seq.) is amended--
            (A) in section 502--
                (i) in subsection (c)(1)(A)(i), by striking ``or 
            (a)(2)'' and inserting ``, (a)(2), or (5)'';
                (ii) in subsection (c)(4)(B)(ii), by inserting before 
            the period at the end the following: ``, or additional 
            assistance or an increase in assistance provided under 
            section 521(a)(5)'';
                (iii) in subsection (c)(4)(B)(iii), by ``or 521(a)(5)'' 
            after ``section 521(a)(2)'';
                (iv) in subsection (c)(4)(B)(v), by inserting before 
            the period at the end the following: ``, or current tenants 
            of projects not assisted under section 521(a)(5)'';
                (v) in subsection (c)(5)(C)(iii)--

                    (I) by striking the second comma; and
                    (II) by inserting ``or any assistance payments 
                received under section 521(a)(5),'' before ``with 
                respect''; and

                (vi) in subsection (c)(5)(D), by inserting before the 
            period at the end the following: ``or, in the case of 
            housing assisted under section 521(a)(5), does not exceed 
            the rents established for the project under such section'';
            (B) in the second sentence of subparagraph (A) of section 
        509(f)(4), by striking ``an amount of section 521 rental 
        assistance'' and inserting ``from amounts available for 
        assistance under paragraphs (2) and (5) of section 521(a), an 
        amount'';
            (C) in section 513(c)(2)--
                (i) in the matter preceding subparagraph (A), by 
            inserting ``or contracts for operating assistance under 
            section 521(a)(5)'' after ``section 521(a)(2)(A)'';
                (ii) in subparagraph (A), by inserting ``or operating 
            assistance contracts'' after ``contracts'';
                (iii) in subparagraph (B), by striking ``rental'' each 
            place it appears; and
                (iv) in subparagraph (C), by inserting ``or operating 
            assistance contracts'' after ``contracts'';
            (D) in section 521(a)(2)(B)--
                (i) by inserting ``or paragraph (5)'' after ``this 
            paragraph''; and
                (ii) by striking ``which shall'' and all that follows 
            through the period at the end and inserting the following: 
            ``. The budget (and the income, in the case of a project 
            assisted under this paragraph) shall be used to determine 
            the amount of the assistance for each project.'';
            (E) in section 521(c), by striking ``subsection (a)(2)'' 
        and inserting ``subsections (a)(2) and (a)(5)'';
            (F) in section 521(e), by inserting after ``recipient'' the 
        following: ``or any tenant in a project assisted under 
        subsection (a)(5)''; and
            (G) in section 530, by striking ``rental assistance 
        payments with respect to such project under section 
        521(a)(2)(A)'' and inserting ``assistance payments with respect 
        to such project under section 521(a)(2)(A) or 521(a)(5)''.
    (f) Rural Housing Guaranteed Loans.--Section 502(h)(6)(C) of the 
Housing Act of 1949 (42 U.S.C. 1472(h)(6)(C)) is amended by striking 
``, subject to the maximum dollar amount limitation of section 
203(b)(2) of the National Housing Act'' each place it appears.
    (g) Applicability.--The amendments made by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 599D. REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 1998'' and inserting ``September 30, 2001''.
    (b) Emergency Implementation of Program.--Section 1336(a) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4056(a)) is amended by 
striking ``September 30, 1998'' and inserting ``September 30, 2001''.
    (c) Applicability.--The amendments made by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 599E. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

    (a) National Competitive Grants.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended--
        (1) in subsection (a), by striking ``to--'' and all that 
    follows and inserting the following: ``to national and regional 
    organizations and consortia that have experience in providing or 
    facilitating self-help housing homeownership opportunities.'';
        (2) in subsection (b)--
            (A) in paragraph (4), by striking ``Habitat for Humanity, 
        its affiliates, and other''; and
            (B) in paragraph (5), by striking ``similar to the 
        homeownership program carried out by Habitat for Humanity 
        International,'';
        (3) by striking subsection (c) and inserting the following new 
    subsection:
    ``(c) National Competition.--The Secretary shall select 
organizations and consortia referred to in subsection (a) to receive 
grants through a national competitive process, which the Secretary 
shall establish.'';
        (4) in subsection (e), by striking paragraph (2) and inserting 
    the following new paragraph:
        ``(2) Assistance to affiliates.--Any organization or consortia 
    that receives a grant under this section may use amounts in the 
    fund established for such organization or consortia pursuant to 
    paragraph (1) for the purposes under subsection (d) by providing 
    assistance from the fund to local affiliates of such organization 
    or consoria.'';
        (5) in subsection (f)--
            (A) in the subsection heading, by striking ``to Other 
        Organizations''; and
            (B) in the matter preceding paragraph (1), by striking 
        ``subsection (a)(2)'' and inserting ``subsection (a)'';
        (6) by striking subsection (g);
        (7) in subsection (h)--
            (A) by striking the first sentence; and
            (B) in the second sentence, by striking ``subsection 
        (a)(2)'' and inserting ``subsection (a)'';
        (8) in subsection (i)(5), by inserting ``(or, in the case of 
    grant amounts from amounts made available for fiscal year 1996 to 
    carry out this section, within 36 months)'' before the comma;
        (9) in subsection (j), by inserting ``(or, in the case of grant 
    amounts from amounts made available for fiscal year 1996 to carry 
    out this section, within 36 months)'' before the second comma;
        (10) in subsection (k)(1), by striking ``under subsection 
    (a)(1) or (a)(2)'';
        (11) by redesignating subsection (p) as subsection (q);
        (12) by inserting after subsection (o) the following new 
    subsection:
    ``(p) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated for fiscal years 1999 and 2000 
such sums as may be necessary.''; and
        (13) in the section heading, by striking ``habitat for humanity 
    and other''.
    (b) Savings Provisions.--Notwithstanding the amendments made by 
subsection (a), any grant under section 11 of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) from amounts 
appropriated in fiscal year 1998 or any prior fiscal year shall be 
governed by the provisions of such section 11 as in effect immediately 
before the enactment of this Act, except that the amendments made by 
paragraphs (8) and (9) of subsection (a) of this section shall apply to 
such grants.
    (c) Effective Date.--This section shall take effect, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

SEC. 599F. SPECIAL MORTGAGE INSURANCE ASSISTANCE.

    (a) In General.--Section 237 of the National Housing Act (12 U.S.C. 
1715z-2) is amended--
        (1) in subsection (b), by inserting ``not more than 26 percent 
    of the total principal obligation (including such initial service 
    charges, and such appraisal, inspection, and other fees as the 
    Secretary shall approve) of'' before ``any mortgage'';
        (2) in paragraph (c)(2) by striking ``$18,000:'' and all that 
    follows through the end of the paragraph and inserting 
    ``$70,000;'';
        (3) in paragraph (c)(3)--
            (A) by inserting ``, prior to and during the 12 months 
        immediately following the purchase of the property, from a 
        community development financial institution under section 
        103(5) of the Community Development Banking and Financial 
        Institutions Act of 1994'' after ``budget, debt management, and 
        related counseling''; and
            (B) by striking ``and'' at the end;
        (4) in paragraph (c)(4)--
            (A) by striking ``25'' and inserting ``36''; and
            (B) by striking the period and inserting ``; and'';
        (5) in subsection (c), by adding at the end the following new 
    paragraphs:
        ``(5) require the mortgagor to be subject, if necessary, to a 
    default mitigation effort undertaken by an intermediary community 
    development financial institution under section 103(5) of the 
    Community Development Banking and Financial Institutions Act of 
    1994, that is acting as a sponsor and pass-through of insurance 
    under section 203 and is approved by the Secretary;
        ``(6) involve a total principal obligation (including such 
    initial service charges, and such appraisal, inspection, and other 
    fees as the Secretary shall approve) that is not more than 90 
    percent of the value of the property for which the mortgage is 
    provided; and
        ``(7) involve a total principal obligation (including such 
    initial service charges, and such appraisal, inspection, and other 
    fees as the Secretary shall approve) in which the mortgagor has 
    equity (as defined by the Secretary) of not less than 10 percent 
    and such equity shall be subordinate to the interest of the 
    Secretary in the mortgaged property.'';
        (6) in subsection (d), by striking ``and (2)'' and inserting 
    ``(2) to families living in empowerment zones and enterprise 
    communities (as those terms are defined in section 1393(b) of the 
    Internal Revenue Code of 1986 (26 U.S.C. 1393(b)) who are eligible 
    for homeownership assistance, and (3)'';
        (7) in subsection (e), by striking ``public or private 
    organizations'' and inserting ``community development financial 
    institutions under section 103(5) of the Community Development 
    Banking and Financial Institutions Act of 1994'';
        (8) in subsection (f), by striking ``all mortgages'' and 
    inserting ``the portions of mortgages'';
        (9) by redesignating subsection (g) as subsection (j); and
        (10) by inserting after subsection (f), the following new 
    subsections:
    ``(g) Mortgages insured under this section shall be subject to an 
insurance premium fee of not more than 1.25 percent of the total 
mortgage principal obligation (including such initial service charges, 
and such appraisal, inspection, and other fees as the Secretary shall 
approve).
    ``(h) Before insuring a mortgage under this section, the Secretary 
shall enter into such contracts or other agreements as may be necessary 
to ensure that the mortgagee or other holder of the mortgage shall 
assume not less than 10 percent and not more than 50 percent of any 
loss on the insured mortgage, subject to any reasonable limit on the 
liability of the mortgagee or holder of the mortgage that may be 
specified in the event of unusual or catastrophic losses that may be 
incurred by any one mortgagee or mortgage holder.
    ``(i) No guarantees may be issued under section 306(g) for the 
timely payment of interest or principal on securities backed, in whole 
or in part, by mortgages insured under this section.''.
    (b) Effective Date.--The amendments under by this section are made 
on, and shall apply beginning upon, the date of the enactment of this 
Act.

SEC. 599G. REHABILITATION DEMONSTRATION GRANT PROGRAM.

    (a) In General.--The Secretary of Housing and Urban Development 
shall, to the extent amounts are provided in appropriation Acts to 
carry out this section, carry out a program to demonstrate the 
effectiveness of making grants for rehabilitation of single family 
housing located within 10 demonstration areas designated by the 
Secretary. Of the areas designated by the Secretary under this 
section--
        (1) 6 shall be areas that have primarily urban characteristics;
        (2) 3 shall be areas that are outside of a metropolitan 
    statistical area; and
        (3) 1 shall be an area that has primarily rural 
    characteristics.
In selecting areas, the Secretary shall provide for national geographic 
and demographic diversity.
    (b) Grantees.--Grants under the program under this section may be 
made only to agencies of State and local governments and non-profit 
organizations operating within the demonstration areas.
    (c) Selection Criteria.--In selecting among applications for 
designation of demonstration areas and grants under this section, the 
Secretary shall consider--
        (1) the extent of single family residences located in the 
    proposed area that have rehabilitation needs;
        (2) the ability and expertise of the applicant in carrying out 
    the purposes of the demonstration program, including the 
    availability of qualified housing counselors and contractors in the 
    proposed area willing and able to participate in rehabilitation 
    activities funded with grant amounts;
        (3) the extent to which the designation of such area and the 
    grant award would promote affordable housing opportunities;
        (4) the extent to which selection of the proposed area would 
    have a beneficial effect on the neighborhood or community in the 
    area and on surrounding areas;
        (5) the extent to which the applicant has demonstrated that 
    grant amounts will be used to leverage additional public or private 
    funds to carry out the purposes of the demonstration program;
        (6) the extent to which lenders (including local lenders and 
    lenders outside the proposed area) are willing and able to make 
    loans for rehabilitation activities assisted with grant funds; and
        (7) the extent to which the application provides for the 
    involvement of local residents in the planning of rehabilitation 
    activities in the demonstration area.
    (d) Use of Grant Funds.--Funds from grants made under this section 
may be used by grantees--
        (1) to subsidize interest on loans, over a period of not more 
    than 5 years from the origination date of the loan, made after the 
    date of the enactment of this Act for rehabilitation of any owner-
    occupied 1- to 4-family residence, including the payment of 
    interest during any period in which a residence is uninhabitable 
    because of rehabilitation activities;
        (2) to facilitate loans for rehabilitation of 1- to 4-family 
    properties previously subject to a mortgage insured under the 
    National Housing Act that has been foreclosed or for which 
    insurance benefits have been paid, including to establish revolving 
    loan funds, loan loss reserves, and other financial structures; and
        (3) to provide technical assistance in conjunction with the 
    rehabilitation of owner-occupied 1- to 4-family residences, 
    including counseling, selection contractors, monitoring of work, 
    approval of contractor payments, and final inspection of work.
    (e) Definition of Rehabilitation.--For purposes of this section, 
the term ``rehabilitation'' has the meaning given such term in section 
203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)).
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section such sums as 
may be necessary for each of fiscal years 1999 through 2003.
    (g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 599H. ASSISTANCE FOR CERTAIN LOCALITIES.

    (a) Use of HOME Funds For Public Housing Modernization.--
Notwithstanding section 212(d)(5) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12742(d)(5)), amounts made available 
to the City of Bismarck, North Dakota or the State of North Dakota, 
under subtitle A of title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12741 et seq.) for fiscal year 1998, 
1999, 2000, 2001, or 2002, may be used to carry out activities 
authorized under section 14 of the United States Housing Act of 1937 
(42 U.S.C. 1437l) for the purpose of modernizing the Crescent Manor 
public housing project located at 107 East Bowen Avenue, in Bismarck, 
North Dakota, if--
        (1) the Burleigh County Housing Authority (or any successor 
    public housing agency that owns or operates the Crescent Manor 
    public housing project) has obligated all other Federal assistance 
    made available to that public housing agency for that fiscal year; 
    or
        (2) the Secretary of Housing and Urban Development authorizes 
    the use of those amounts for the purpose of modernizing that public 
    housing project, which authorization may be made with respect to 1 
    or more of those fiscal years.
    (b) Consultation With Affected Areas in Settlement of Litigation.--
In negotiating any settlement of, or consent decree for, significant 
litigation regarding public housing or section 8 tenant-based 
assistance that involves the Secretary and any public housing agency or 
any unit of general local government, the Secretary shall seek the 
views of any units of general local government and public housing 
agencies having jurisdictions that are adjacent to the jurisdiction of 
the public housing agency involved, if the resolution of such 
litigation would involve the acquisition or development of public 
housing dwelling units or the use of vouchers under section 8 of the 
United States Housing Act of 1937 in jurisdictions that are adjacent to 
the jurisdiction of the public housing agency involved in the 
litigation.
    (c) Treatment of PHA Repayment Agreement.--
        (1) Limitation on secretary.--During the 2-year period 
    beginning on the date of the enactment of this Act, if the Housing 
    Authority of the City of Las Vegas, Nevada, is otherwise in 
    compliance with the Repayment Lien Agreement and Repayment Plan 
    approved by the Secretary on February 12, 1997, the Secretary of 
    Housing and Urban Development shall not take any action that has 
    the effect of reducing the inventory of senior citizen housing 
    owned by such housing authority that does not receive assistance 
    from the Department of Housing and Urban Development.
        (2) Alternative Repayment Options.--During the period referred 
    to in paragraph (1), the Secretary shall assist the housing 
    authority referred to in such paragraph to identify alternative 
    repayment options to the plan referred to in such paragraph and to 
    execute an amended repayment plan that will not adversely affect 
    the housing referred to in such paragraph.
        (3) Rule of construction.--This subsection may not be construed 
    to alter--
            (A) any lien held by the Secretary pursuant to the 
        agreement referred to in paragraph (1); or
            (B) the obligation of the housing authority referred to in 
        paragraph (1) to close all remaining items contained in the 
        Inspector General audits numbered 89 SF 1004 (issued January 
        20, 1989), 93 SF 1801 (issued October 30, 1993), and 96 SF 1002 
        (issued February 23, 1996).
    (d) Ceiling Rents For Certain Section 8 Properties.--
Notwithstanding any other provision of law, within 30 days after the 
date of the enactment of this Act, the Secretary shall establish 
ceiling rents for the Marshall Field Garden Apartments Homes in 
Chicago, Illinois, at rent levels, in the determination of the 
Secretary made in consultation with the owner, that facilitate 
retaining or attracting working class families.
    (e) Application for Moving to Work Demonstration Program.--Upon the 
submission of an application for participation in the moving to work 
demonstration program under section 204 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996; 42 U.S.C. 
1437f note) by the Charlotte Housing Authority of Charlotte, North 
Carolina, or the Housing Authority of the City of Pittsburgh, 
Pennsylvania, the Secretary of Housing and Urban Development shall--
        (1) consider such application, notwithstanding--
            (A) the limitation under subsection (b) of such section on 
        the number of public housing agencies that may participate in 
        such program; or
            (B) any limitation regarding the date for the submission of 
        applications for participation in such program; and
        (2) approve or disapprove the application based on the criteria 
    for selection for participation in such program, notwithstanding 
    the limitations referred to in paragraph (1) of this subsection.
    (f) Use of Project to Benefit Low-Income Persons.--The project 
funded by the Secretary of Housing and Urban Development under the 
supportive housing program of title IV of the Stewart B. McKinney 
Homeless Assistance Act through grant number FL 29T90-1285 (commonly 
known as Royal Pointe) shall be considered to have been approved 
pursuant to section 423(b)(3) of such Act as of December 31, 1995 for 
use for the direct benefit of low-income persons.
    (g) Rural Housing Assistance.--The last sentence of section 520 of 
the Housing Act of 1949 (42 U.S.C. 1490) is amended by inserting before 
the period the following: ``, and the city of Altus, Oklahoma, shall be 
considered a rural area for purposes of this title until the receipt of 
data from the decennial census in the year 2000''.
    (h) Funding for Purchase and Conversion of Existing Assisted 
Housing.--Notwithstanding any other provision of law, and only to the 
extent specifically provided in a subsequent appropriations Act, from 
any amounts previously appropriated for Annual Contributions for 
Assisted Housing or for the Public Housing Capital Fund and not 
obligated by the Secretary, the Secretary may make available to the 
Lockport Housing Authority in Lockport, New York, such sums as may be 
necessary for use in accordance with section 5 of the United States 
Housing Act of 1937 (42 U.S.C. 1437c) for the purchase and 
rehabilitation of a project that is assisted under section 8 of such 
Act and located on a site contiguous to the site of a public housing 
project administered by the agency.
    (i) Rural and Tribal Assistance.--From the amounts that were made 
available to the Secretary under the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1998, for grants for rural and tribal areas 
pursuant to the 5th undesignated paragraph of the heading ``Community 
Planning and Development--community development block grant programs'' 
(Public Law 105-65; 111 Stat. 1357), the Secretary shall provide from 
any amounts remaining unobligated--
        (1) $2,800,000 for seed money for a multi-State rural 
    homeownership campaign administered by the Rural Opportunities 
    Affordable Housing Finance Alliance; and
        (2) $500,000 to the Rural Housing Institute of the Muscatine 
    Center for Strategic Action.
    Notwithstanding any other provision of this Act, this subsection 
shall take affect only to the extent specifically provided in a 
subsequent appropriations Act.
    (j) Community Services Demonstration.--
        (1) Authority.--The Secretary of Housing and Urban Development 
    shall, to the extent amounts are appropriated to carry out this 
    subsection, provide financial assistance to the Bethune-Cookman 
    College in Volusia County, Florida (in this subsection referred to 
    as the ``College''), in accordance with the provisions of this 
    subsection, for the College to establish and operate, as a national 
    demonstration, the Bethune-Cookman Community Services Student Union 
    Center.
        (2) Use.--Any financial assistance provided to the College 
    pursuant to this subsection shall be used by the College for the 
    construction, maintenance, and endowment of the Bethune-Cookman 
    Community Services Student Union Center through--
            (A) the acquisition of necessary equipment, including 
        utility vehicles; or
            (B) the acquisition of necessary real property;
        (3) Application.--The Secretary shall provide financial 
    assistance under this subsection only pursuant to application by 
    the College for such assistance at such time, in such manner, and 
    providing such information as the Secretary of Housing and Urban 
    Development may reasonably require.
        (4) Authorization of Appropriations.--There are authorized to 
    be appropriated such sums as may be necessary for assistance under 
    this subsection. Any amounts appropriated pursuant to this 
    subsection shall remain available until expended.
    (k) Independence Square Foundation.--Notwithstanding any other 
provision of law, including 28 U.S.C. 516, the Secretary of Housing and 
Urban Development shall enforce the use agreement entered into between 
the Secretary and the Independence Square Foundation of Newport, Rhode 
Island: Provided further, That such enforcement shall include the 
option of instituting civil litigation to determine the current 
applicability of the aforementioned use agreement or petition for the 
issuance of an injunction to prevent the demolition of the property 
subject to the aforementioned use agreement.
    (l) Removal of HOPE VI Demolition Requirement.--The Secretary may 
approve otherwise qualified applications received in response to a 
notice published at 63 Federal Register 15489 (March 31, 1998) for 
grants from the $26,000,000 set-aside of amounts made available under 
the head `revitalization of severely distressed public housing (hope 
vi)' in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998 (Public 
Law 105-65, 111 Stat. 1354) without regard to whether such applications 
propose or plan demolition of obsolete public housing projects.
    (m) Effective Date.--This section shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act.

               TITLE VI--FHA PROPERTY DISPOSITION REFORM

        Sec. 601. Single Family Claims Reform and Sale of Property. (a) 
    Revision of Claims Procedures.--Section 204 of the National Housing 
    Act (12 U.S.C. 1710) is amended by striking ``Sec. 204.'' and all 
    that follows through the end of subsection (a) and inserting the 
    following:
    ``Sec. 204. (a) In General.--
        ``(1) Authorized claims procedures.--The Secretary may, in 
    accordance with this subsection and terms and conditions prescribed 
    by the Secretary, pay insurance benefits to a mortgagee for any 
    mortgage insured under section 203 through any of the following 
    methods:
            ``(A) Assignment of mortgage.--The Secretary may pay 
        insurance benefits whenever a mortgage has been in a monetary 
        default for not less than 3 full monthly installments or 
        whenever the mortgagee is entitled to foreclosure for a 
        nonmonetary default. Insurance benefits shall be paid pursuant 
        to this subparagraph only upon the assignment, transfer, and 
        delivery to the Secretary of--
                ``(i) all rights and interests arising under the 
            mortgage;
                ``(ii) all claims of the mortgagee against the 
            mortgagor or others arising out of the mortgage 
            transaction;
                ``(iii) title evidence satisfactory to the Secretary; 
            and
                ``(iv) such records relating to the mortgage 
            transaction as the Secretary may require.
            ``(B) Conveyance of title to property.--The Secretary may 
        pay insurance benefits if the mortgagee has acquired title to 
        the mortgaged property through foreclosure or has otherwise 
        acquired such property from the mortgagor after a default 
        upon--
                ``(i) the prompt conveyance to the Secretary of title 
            to the property which meets the standards of the Secretary 
            in force at the time the mortgage was insured and which is 
            evidenced in the manner provided by such standards; and
                ``(ii) the assignment to the Secretary of all claims of 
            the mortgagee against the mortgagor or others, arising out 
            of mortgage transaction or foreclosure proceedings, except 
            such claims as may have been released with the consent of 
            the Secretary.
        The Secretary may permit the mortgagee to tender to the 
        Secretary a satisfactory conveyance of title and transfer of 
        possession directly from the mortgagor or other appropriate 
        grantor, and may pay to the mortgagee the insurance benefits to 
        which it would otherwise be entitled if such conveyance had 
        been made to the mortgagee and from the mortgagee to the 
        Secretary.
            ``(C) Claim without conveyance of title.--The Secretary may 
        pay insurance benefits upon sale of the mortgaged property at 
        foreclosure where such sale is for at least the fair market 
        value of the property (with appropriate adjustments), as 
        determined by the Secretary, and upon assignment to the 
        Secretary of all claims referred to in clause (ii) of 
        subparagraph (B).
            ``(D) Preforeclosure sale.--The Secretary may pay insurance 
        benefits upon the sale of the mortgaged property by the 
        mortgagor after default and the assignment to the Secretary of 
        all claims referred to in clause (ii) of subparagraph (B), if--
                ``(i) the sale of the mortgaged property has been 
            approved by the Secretary;
                ``(ii) the mortgagee receives an amount at least equal 
            to the fair market value of the property (with appropriate 
            adjustments), as determined by the Secretary; and
                ``(iii) the mortgagor has received an appropriate 
            disclosure, as determined by the Secretary.
    (2) Payment for loss mitigation.--The Secretary may pay insurance 
benefits to the mortgagee to recompense the mortgagee for all or part 
of any costs of the mortgagee for taking loss mitigation actions that 
provide an alternative to foreclosure of a mortgage that is in default 
(including but not limited to actions such as special forbearance, loan 
modification, and deeds in lieu of foreclosure, but not including 
assignment of mortgages to the Secretary under section 204(a)(1)(A)). 
No actions taken under this paragraph, nor any failure to act under 
this paragraph, by the Secretary or by a mortgagee shall be subject to 
judicial review.
        ``(3) Determination of claims procedure.--The Secretary shall 
    publish guidelines for determining which of the procedures for 
    payment of insurance under paragraph (1) are available to a 
    mortgagee when it claims insurance benefits. At least one of the 
    procedures for payment of insurance benefits specified in paragraph 
    (1)(A) or (1)(B) shall be available to a mortgagee with respect to 
    a mortgage, but the same procedure shall not be required to be 
    available for all of the mortgages held by a mortgagee.
        ``(4) Servicing of assigned mortgages.--If a mortgage is 
    assigned to the Secretary under paragraph (1)(A), the Secretary may 
    permit the assigning mortgagee or its servicer to continue to 
    service the mortgage for reasonable compensation and on terms and 
    conditions determined by the Secretary. Neither the Secretary nor 
    any servicer of the mortgage shall be required to forbear from 
    collection of amounts due under the mortgage or otherwise pursue 
    loss mitigation measures.
        ``(5) Calculation of insurance benefits.--Insurance benefits 
    shall be paid in accordance with section 520 and shall be equal to 
    the original principal obligation of the mortgage (with such 
    additions and deductions as the Secretary determines are 
    appropriate) which was unpaid upon the date of--
            ``(A) assignment of the mortgage to the Secretary;
            ``(B) the institution of foreclosure proceedings;
            ``(C) the acquisition of the property after default other 
        than by foreclosure; or
            ``(D) sale of the mortgaged property by the mortgagor.
        ``(6) Forbearance and recasting after default.--The mortgagee 
    may, upon such terms and conditions as the Secretary may 
    prescribe--
            ``(A) extend the time for the curing of the default and the 
        time for commencing foreclosure proceedings or for otherwise 
        acquiring title to the mortgaged property, to such time as the 
        mortgagee determines is necessary and desirable to enable the 
        mortgagor to complete the mortgage payments, including an 
        extension of time beyond the stated maturity of the mortgage, 
        and in the event of a subsequent foreclosure or acquisition of 
        the property by other means the Secretary may include in the 
        amount of insurance benefits an amount equal to any unpaid 
        mortgage interest; or
        ``(B) provide for a modification of the terms of the mortgage 
    for the purpose of recasting, over the remaining term of the 
    mortgage or over such longer period pursuant to guidelines as may 
    be prescribed by the Secretary, the total unpaid amount then due, 
    with the modification to become effective currently or to become 
    effective upon the termination of an agreed-upon extension of the 
    period for curing the default; and the principal amount of the 
    mortgage, as modified, shall be considered the `original principal 
    obligation of the mortgage' for purposes of paragraph (5).
        ``(7) Termination of premium obligation.--The obligation of the 
    mortgagee to pay the premium charges for insurance shall cease upon 
    fulfillment of the appropriate requirements under which the 
    Secretary may pay insurance benefits, as described in paragraph 
    (1). The Secretary may also terminate the mortgagee's obligation to 
    pay mortgage insurance premiums upon receipt of an application 
    filed by the mortgagee for insurance benefits under paragraph (1), 
    or in the event the contract of insurance is terminated pursuant to 
    section 229.
        ``(8) Effect on payment of insurance benefits under section 
    230.--Nothing in this section shall limit the authority of the 
    Secretary to pay insurance benefits under section 230.
        ``(9) Treatment of mortgage assignment program.--
    Notwithstanding any other provision of law, or the Amended 
    Stipulation entered as a consent decree on November 8, 1979, in 
    Ferrell v. Cuomo, No. 73 C 334 (N.D. Ill.), or any other order 
    intended to require the Secretary to operate the program of 
    mortgage assignment and forbearance that was operated by the 
    Secretary pursuant to the Amended Stipulation and under the 
    authority of section 230, prior to its amendment by section 407(b) 
    of The Balanced Budget Downpayment Act, I (Public Law 104-99; 110 
    Stat. 45), no mortgage assigned under this section may be included 
    in any mortgage foreclosure avoidance program that is the same or 
    substantially equivalent to such a program of mortgage assignment 
    and forbearance.''.
    (b) Effective Date.--The Secretary shall publish a notice in the 
Federal Register stating the effective date of the terms and conditions 
prescribed by the Secretary under section 204(a)(1) of the National 
Housing Act, as amended by subsection (a) of this section. Subsections 
(a) and (k) of section 204 of the National Housing Act, as in effect 
immediately before such effective date, shall continue to apply to any 
mortgage insured under section 203 of the National Housing Act before 
such effective date, except that the Secretary may, at the request of 
the mortgagee, pay insurance benefits as provided in subparagraphs (A) 
and (D) of section 204(a)(1) of such Act to calculate insurance 
benefits in accordance with section 204(a)(5) of such Act.
    (c) Repeal of Redundant Provision.--Subsection (k) of section 204 
of the National Housing Act (12 U.S.C. 1710(k)) is hereby repealed.
    (d) Authority To Sell.--Section 204(g) of the National Housing Act 
(12 U.S.C. 1710(g)) is amended by adding at the end the following new 
sentence: ``The Secretary may sell real and personal property acquired 
by the Secretary pursuant to the provisions of this Act on such terms 
and conditions as the Secretary may prescribe.''.
    (e) Authority To Insure Mortgage.--Section 223(c) of the National 
Housing Act (12 U.S.C. 1715n(c)) is amended--
        (1) by striking ``him'' each place it appears and inserting 
    ``the Secretary''; and
        (2) by inserting before ``of any property acquired'', the 
    following: ``, including a sale through another entity acting under 
    authority of the fourth sentence of section 204(g),''.
    (f) Loss Mitigation.--Section 230 of the National Housing Act is 
amended--
        (1) by redesignating subsections (a) through (e) as (b) through 
    (f); and
        (2) by inserting a new subsection (a) as follows:
    ``(a) Upon default of any mortgage insured under this title, 
mortgagees shall engage in loss mitigation actions for the purpose of 
providing an alternative to foreclosure (including but not limited to 
actions such as special forbearance, loss modification, and deeds in 
lieu of foreclosure, but not including assignment of mortgages to the 
Secretary under section 204(a)(1)(A)) as provided in regulations by the 
Secretary.''.
    (g) Penalty.--Section 536(a) of the National Housing Act is amended 
by inserting at the end of paragraph (2) the following:
    ``In the case of the mortgagee's failure to engage in loss 
mitigation activities, as provided in section 536(b)(1)(I), the penalty 
shall be in the amount of three times the amount of any insurance 
benefits claimed by the mortgagee with respect to any mortgage for 
which the mortgagee failed to engage in such loss mitigation 
actions.''.
    (h) Violation.--Section 536(b)(1) of the National Housing Act is 
amended by inserting after subparagraph (h) the following:
    ``(I) Failure to engage in loss mitigation actions as provided in 
section 230(a) of this Act.''.
    Sec. 602. Disposition of HUD-Owned Single Family Assets in 
Revitalization Areas.--Section 204 of the National Housing Act (12 
U.S.C. 1710) is amended--
        (1) by redesignating subsection (h) as subsection (i); and
        (2) by inserting after subsection (g) the following new 
    subsection:
    ``(h) Disposition of Assets in Revitalization Areas.--
        ``(1) In general.--The purpose of this subsection is to require 
    the Secretary to carry out a program under which eligible assets 
    (as such term is defined in paragraph (2)) shall be made available 
    for sale in a manner that promotes the revitalization, through 
    expanded homeownership opportunities, of revitalization areas. 
    Notwithstanding the authority under the last sentence of subsection 
    (g), the Secretary shall dispose of all eligible assets under the 
    program and shall establish the program in accordance with the 
    requirements under this subsection.
        ``(2) Eligible assets.--For purposes of this subsection, the 
    term `eligible asset' means any of the following assets of the 
    Secretary:
            ``(A) Properties.--Any property that--
                ``(i) is designed as a dwelling for occupancy by 1 to 4 
            families;
                ``(ii) is located in a revitalization area;
                ``(iii) was previously subject to a mortgage insured 
            under the provisions of this Act; and
                ``(iv) is owned by the Secretary pursuant to the 
            payment of insurance benefits under this Act.
            ``(B) Mortgages.--Any mortgage that--
                ``(i) is an interest in a property that meets the 
            requirements of clauses (i) and (ii) of subparagraph (A);
                ``(ii) was previously insured under the provisions of 
            this Act; and
                ``(iii) is held by the Secretary pursuant to the 
            payment of insurance benefits under this Act.
        For purposes of this subsection, an asset under this 
        subparagraph shall be considered to be located in a 
        revitalization area, or in the asset control area of a 
        preferred purchaser, if the property described in clause (i) is 
        located in such area.
            ``(C) Future interests.--Any contingent future interest of 
        the Secretary in an asset described in subparagraph (A) or (B).
        ``(3) Revitalization areas.--The Secretary shall designate 
    areas as revitalization areas for purposes of this subsection. 
    Before designation of an area as a revitalization area, the 
    Secretary shall consult with affected units of general local 
    government and interested nonprofit organizations. The Secretary 
    may designate as revitalization areas only areas that meet one of 
    the following requirements:
            ``(A) Very-low income area.--The median household income 
        for the area is less than 60 percent of the median household 
        income for--
                ``(i) in the case of any area located within a 
            metropolitan area, such metropolitan area; or
                ``(ii) in the case of any area not located within a 
            metropolitan area, the State in which the area is located.
            ``(B) High concentration of eligible assets.--A high rate 
        of default or foreclosure for single family mortgages insured 
        under the National Housing Act has resulted, or may result, in 
        the area--
                ``(i) having a disproportionately high concentration of 
            eligible assets, in comparison with the concentration of 
            such assets in surrounding areas; or
                ``(ii) being detrimentally impacted by eligible assets 
            in the vicinity of the area.
            ``(C) Low home ownership rate.--The rate for home ownership 
        of single family homes in the area is substantially below the 
        rate for homeownership in the metropolitan area.
        ``(4) Preference for sale to preferred purchasers.--The 
    Secretary shall provide a preference, among prospective purchasers 
    of eligible assets, for sale of such assets to any purchaser who--
            ``(A) is--
                ``(i) the unit of general local government having 
            jurisdiction with respect to the area in which are located 
            the eligible assets to be sold; or
                ``(ii) a nonprofit organization;
            ``(B) in making a purchase under the program under this 
        subsection--
                ``(i) establishes an asset control area, which shall be 
            an area that consists of part or all of a revitalization 
            area; and
                ``(ii) purchases all interests of the Secretary in all 
            assets of the Secretary that, at any time during the period 
            which shall be set forth in the sale agreement required 
            under paragraph (7)--

                    ``(I) are or become eligible assets; and
                    ``(II) are located in the asset control area of the 
                purchaser; and

            ``(C) has the capacity to carry out the purchase of 
        eligible assets under the program under this subsection and 
        under the provisions of this paragraph.
        ``(5) Agreements Required for Purchase.--
            ``(A) Preferred purchasers.--Under the program under this 
        subsection, the Secretary may sell an eligible asset as 
        provided in paragraph (4) to a preferred purchaser only 
        pursuant to a binding agreement by the preferred purchaser that 
        the eligible asset will be used in conjunction with a home 
        ownership plan that provides as follows:
                ``(i) The plan has as its primary purpose the expansion 
            of home ownership in, and the revitalization of, the asset 
            control area, established pursuant to paragraph (4)(B)(i) 
            by the purchaser, in which the eligible asset is located.
                ``(ii) Under the plan, the preferred purchaser has 
            established, and agreed to meet, specific performance goals 
            for increasing the rate of home ownership for eligible 
            assets in the asset control area that are under the 
            purchaser's control. The plan shall provide that the 
            Secretary may waive or modify such goals or deadlines only 
            upon a determination by the Secretary that a good faith 
            effort has been made in complying with the goals through 
            the homeownership plan and that exceptional neighborhood 
            conditions prevented attainment of the goal.
                ``(iii) Under the plan, the preferred purchaser has 
            established rehabilitation standards that meet or exceed 
            the standards for housing quality established under 
            subparagraph (B)(iii) by the Secretary, and has agreed that 
            each asset property for an eligible asset purchased will be 
            rehabilitated in accordance with such standards.
            ``(B) Non-preferred purchasers.--Under the program under 
        this subsection, the Secretary may sell an eligible asset to a 
        purchaser who is not a preferred purchaser only pursuant to a 
        binding agreement by the purchaser that complies with the 
        following requirements:
                ``(i) The purchaser has agreed to meet specific 
            performance goals established by the Secretary for home 
            ownership of the asset properties for the eligible assets 
            purchased by the purchaser, except that the Secretary may, 
            by including a provision in the sale agreement required 
            under paragraph (7), provide for a lower rate of home 
            ownership in sales involving exceptional circumstances.
                ``(ii) The purchaser has agreed that each asset 
            property for an eligible asset purchased will be 
            rehabilitated to comply with minimum standards for housing 
            quality established by the Secretary for purposes of the 
            program under this subsection.
        ``(6) Discount for preferred purchasers.--
            ``(A) In general.--For the purpose of providing a public 
        purpose discount for the bulk sales of eligible assets made 
        under the program under this subsection by preferred 
        purchasers, each eligible asset sold through the program under 
        this subsection to a preferred purchaser shall be sold at a 
        price that is discounted from the value of the asset, as based 
        on the appraised value of the asset property (as such term is 
        defined in paragraph (8)).
            ``(B) Appraisals.--The Secretary shall require that each 
        appraisal of an eligible asset under this paragraph is based 
        upon--
                ``(i) the market value of the asset property in its `as 
            is' physical condition, which shall take into consideration 
            age and condition of major mechanical and structural 
            systems; and
                ``(ii) the value of the property appraised for home 
            ownership.
            ``(C) Discount classes.--The Secretary, in the sole 
        discretion of the Secretary, shall establish the discount under 
        this paragraph for an eligible asset, which shall be in one of 
        the following amounts:
                ``(i) Standard discount.--In the case only of eligible 
            assets with asset properties that, at the time of sale 
            under this subsection, do not meet the standards for 
            housing quality established pursuant to paragraph 
            (5)(B)(ii), an amount that--

                    ``(I) is appropriate to provide reasonable 
                resources for the improvement such assets; and
                    ``(II) takes into consideration the financial 
                safety and soundness of the Mutual Mortgage Insurance 
                Fund.

                ``(ii) Deep discount.--In the case only of eligible 
            assets described in clause (i) for which the Secretary 
            determines a deep discount is appropriate, an amount that 
            exceeds the amount of a standard discount under clause (i). 
            In making a determination whether a deep discount is 
            appropriate, the Secretary may consider the condition of 
            the asset property, the extent of resources available to 
            the preferred purchaser, the comprehensive revitalization 
            plan undertaken by such purchaser, or any other 
            circumstances the Secretary considers appropriate.
                ``(iii) Minimal discount.--In the case only of eligible 
            assets with asset properties that, at the time of sale 
            under this subsection, meet or substantially meet the 
            standards for housing quality established pursuant to 
            paragraph (5)(B)(ii), an amount that is less than the 
            amount of a standard discount under clause (i) of this 
            subparagraph and is sufficient to provide assistance to the 
            preferred purchaser in meeting costs associated with 
            compliance with the program requirements under this 
            subsection.
            ``(D) Determination of discount class.--The Secretary 
        shall, in the sole discretion of the Secretary, establish a 
        method for determining which discount under clause (i) or (ii) 
        subparagraph (C) shall be provided for an eligible asset that 
        is described in such clause (i) and sold to a preferred 
        purchaser. The method may result in the assignment of discounts 
        on any basis consistent with subparagraph (C) that the 
        Secretary considers appropriate to carry out the purposes of 
        this subsection.
        ``(7) Sale agreement.--The Secretary may sell an eligible asset 
    under this subsection only pursuant to a sale agreement entered 
    into under this paragraph with the purchaser, which shall include 
    the following provisions:
            ``(A) Assets.--The sale agreement shall identify the 
        eligible assets to be purchased and the interests sold.
            ``(B) Revitalization area and asset control area.--The sale 
        agreement shall identify--
                ``(i) the boundaries of the specific revitalization 
            areas (or portions thereof) in which are located the 
            eligible assets that are covered by the agreement; and
                ``(ii) in the case of a preferred purchaser, the asset 
            control area established pursuant to paragraph (4)(B)(i) 
            that is covered by the agreement.
            ``(C) Financing.--The sale agreement shall identify the 
        sources of financing for the purchase of the eligible assets.
            ``(D) Binding agreements.--The sale agreement shall contain 
        binding agreements by the purchaser sufficient to comply with--
                ``(i) in the case of a preferred purchaser, the 
            requirements under paragraph (5)(A), which agreements shall 
            provide that the eligible assets purchased will be used in 
            conjunction with a home ownership plan meeting the 
            requirements of such paragraph, and shall set forth the 
            terms of the homeownership plan, including--

                    ``(I) the goals of the plan for the eligible assets 
                purchased and for the asset control area subject to the 
                plan;
                    ``(II) the revitalization areas (or portions 
                thereof) in which the homeownership plan is operating 
                or will operate;
                    ``(III) the specific use or disposition of the 
                eligible assets under the plan; and
                    ``(IV) any activities to be conducted and services 
                to be provided under the plan; or

                ``(ii) in the case of a purchaser who is not a 
            preferred purchaser, the requirements under paragraph 
            (5)(B).
            ``(E) Purchase price and discount.--The sale agreement 
        shall establish the purchase price of the eligible assets, 
        which in the case of a preferred purchaser shall provide for a 
        discount in accordance with paragraph (6).
            ``(F) Housing quality.--The sale agreement shall provide 
        for compliance of the eligible assets purchased with the 
        rehabilitation standards established under paragraph 
        (5)(A)(iii) or the minimum standards for housing quality 
        established under paragraph (5)(B)(ii), as applicable, and 
        shall specify such standards.
            ``(G) Performance goals and sanctions.--The sale agreement 
        shall set forth the specific performance goals applicable to 
        the purchaser, in accordance with paragraph (5), shall set 
        forth any sanctions for failure to meet such goals and 
        deadlines, and shall require the purchaser to certify 
        compliance with such goals.
            ``(H) Period covered.--The sale agreement shall establish--
                ``(i) in the case of a preferred purchaser, the time 
            period referred to in paragraph (4)(B)(ii); and
                ``(ii) in the case of a purchaser who is not a 
            preferred purchaser, the time period for purchase of 
            eligible assets that may be covered by the purchase.
            ``(I) Other terms.--The agreement shall contain such other 
        terms and conditions as may be necessary to require that 
        eligible assets purchased under the agreement are used in 
        accordance with the program under this subsection.
        ``(8) Definitions.--For purposes of this subsection, the 
    following definitions shall apply:
            ``(A) Asset control area.--The term `asset control area' 
        means the area established by a preferred purchaser pursuant to 
        paragraph (4)(B)(i).
            ``(B) Asset property.--The term `asset property' means--
                ``(i) with respect to an eligible asset that is a 
            property, such property; and
                ``(ii) with respect to an eligible asset that is a 
            mortgage, the property that is subject to the mortgage.
            ``(C) Eligible asset.--The term `eligible asset' means an 
        asset described in paragraph (2).
            ``(D) Nonprofit organization.--The term `nonprofit 
        organization' means a private organization that--
                ``(i) is organized under State or local laws;
                ``(ii) has no part of its net earnings inuring to the 
            benefit of any member, shareholder, founder, contributor, 
            or individual; and
                ``(iii) complies with standards of financial 
            responsibility that the Secretary may require.
            ``(E) Preferred purchaser.--The term `preferred purchaser' 
        means a purchaser described in paragraph (4).
            ``(F) Unit of general local government.--The term `unit of 
        general local government' means any city, town, township, 
        county, parish, village, or other general purpose political 
        subdivision of a State.
        ``(9) Secretary's discretion.--The Secretary shall have the 
    authority to implement and administer the program under this 
    subsection in such manner as the Secretary may determine. The 
    Secretary may, in the sole discretion of the Secretary, enter into 
    contracts to provide for the proper administration of the program 
    with such public or nonprofit entities as the Secretary determines 
    are qualified.
        ``(10) Regulations.--The Secretary shall issue regulations to 
    implement the program under this subsection through rulemaking in 
    accordance with the procedures established under section 553 of 
    title 5, United States Code, regarding substantive rules. Such 
    regulations shall take effect not later than the expiration of the 
    2-year period beginning on the date of the enactment of the 
    Departments of Veterans Affairs and Housing and Urban Development, 
    and Independent Agencies Appropriations Act, 1999.''.
    Titles I, II, III, IV, and VI of this Act may be cited as the 
``Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1999''.

                               Speaker of the House of Representatives.

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