[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 562 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                      November 9, 1997.
      Resolved, That the Senate agree to the amendments of the House of 
Representatives to the bill (S. 562) entitled ``An Act to amend section 
255 of the National Housing Act to prevent the funding of unnecessary 
or excessive costs for obtaining a home equity conversion mortgage.'' 
with the following

                 SENATE AMENDMENT TO HOUSE AMENDMENTS:

            In lieu of the matter proposed to be inserted by the House 
      amendment to the text of the bill, insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizen Home Equity 
Protection Act''.

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

SEC. 101. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF 
              UNNECESSARY OR EXCESSIVE COSTS.

    Section 255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) has received full disclosure of all costs to 
                the mortgagor for obtaining the mortgage, including any 
                costs of estate planning, financial advice, or other 
                related services; and'';
            (2) in paragraph (9)(F), by striking ``and'';
            (3) in paragraph (10), by striking the period at the end 
        and inserting ``; and''; and
            (4) 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.''.

SEC. 102. IMPLEMENTATION.

    (a) Notice.--The Secretary of Housing and Urban Development shall, 
by interim notice, implement the amendments made by section 101 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 subsection (b).
    (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 section 101. 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).

 TITLE II--TEMPORARY EXTENSION OF PUBLIC HOUSING AND SECTION 8 RENTAL 
                         ASSISTANCE PROVISIONS

SEC. 201. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS AND 
              PREFERENCES FOR ASSISTED HOUSING.

    Section 402(f) of The Balanced Budget Downpayment Act, I (42 U.S.C. 
1437aa note) is amended by striking ``and 1997'' and inserting ``, 
1997, and 1998''.

SEC. 202. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

    Section 1002(d) 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 (42 U.S.C. 1437c note) is amended by 
striking ``September 30, 1997'' and inserting ``September 30, 1998''.

SEC. 203. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-FINANCE 
              DEVELOPMENTS.

    (a) Extension of Authority.--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 
        1998 or any preceding fiscal year, except that the authority in 
        the first sentence of section 14(q)(1) of that Act 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 year 1998.''.
    (b) Mixed Finance.--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: ``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.''.

SEC. 204. MINIMUM RENTS.

    Section 402(a) of The Balanced Budget Downpayment Act, I (Public 
Law 104-99; 110 Stat. 40) is amended in the matter preceding paragraph 
(1) by striking ``fiscal year 1997'' and inserting ``fiscal years 1997 
and 1998''.

SEC. 205. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE PROGRAM.

    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) is amended by striking ``and 1997'' and inserting 
``, 1997, and 1998''.

  TITLE III--REAUTHORIZATION OF FEDERALLY ASSISTED MULTIFAMILY RENTAL 
                           HOUSING PROVISIONS

SEC. 301. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.

    Section 542 of the Housing and Community Development Act of 1992 
(12 U.S.C. 1707 note) is amended--
            (1) in subsection (b)(5), by inserting before the period at 
        the end of the first sentence the following: ``, and not more 
        than an additional 15,000 units during fiscal year 1998''; and
            (2) in the first sentence of subsection (c)(4)--
                    (A) by striking ``and'' and inserting a comma; and
                    (B) by inserting before the period at the end the 
                following: ``, and not more than an additional 15,000 
                units during fiscal year 1998''.

SEC. 302. HUD DISPOSITION OF MULTIFAMILY HOUSING.

    Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997 
(12 U.S.C. 1715z-11a) is amended by inserting after ``owned by the 
Secretary'' the following: ``, including the provision of grants and 
loans from the General Insurance Fund for the necessary costs of 
rehabilitation or demolition,''.

SEC. 303. MULTIFAMILY MORTGAGE AUCTIONS.

    Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 
1715l(g)(4)(C)) is amended--
            (1) in the first sentence of clause (viii), by striking 
        ``September 30, 1996'' and inserting ``December 31, 2000''; and
            (2) by adding at the end the following:
            ``(ix) The authority of the Secretary to conduct 
        multifamily auctions under this subparagraph 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.''.

SEC. 304. CLARIFICATION OF OWNER'S RIGHT TO PREPAY.

    (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; and
            (2) only if 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.

          TITLE IV--REAUTHORIZATION OF RURAL HOUSING PROGRAMS

SEC. 401. HOUSING IN UNDERSERVED AREAS PROGRAM.

    The first sentence of section 509(f)(4)(A) of the Housing Act of 
1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking ``fiscal year 
1997'' and inserting ``fiscal years 1997, 1998, and 1999''.

SEC. 402. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS AND 
              FAMILIES AND OTHER LOW-INCOME PERSONS AND FAMILIES.

    (a) Authority To Make Loans.--Section 515(b)(4) of the Housing Act 
of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking ``September 30, 
1997'' and inserting ``September 30, 1999''.
    (b) 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 1997'' and inserting ``fiscal years 
1997, 1998, and 1999''.

SEC. 403. LOAN GUARANTEES 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 (q), by striking paragraph (2) and 
        inserting the following:
            ``(2) Annual limitation on amount of loan guarantee.--In 
        each fiscal year, the Secretary may enter into commitments to 
        guarantee loans under this section only to the extent that the 
        costs of the guarantees entered into in such fiscal year do not 
        exceed such amount as may be provided in appropriation Acts for 
        such fiscal year.'';
            (2) by striking subsection (t) and inserting the following:
    ``(t) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 1998 and 1999 for costs (as such 
term is defined in section 502 of the Congressional Budget Act of 1974) 
of loan guarantees made under this section such sums as may be 
necessary for such fiscal year.''; and
            (3) in subsection (u), by striking ``1996'' and inserting 
        ``1999''.

      TITLE V--REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM

SEC. 501. PROGRAM EXPIRATION.

    Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4026) is amended by striking ``September 30, 1997'' and inserting 
``September 30, 1999''.

SEC. 502. BORROWING AUTHORITY.

    Section 1309(a)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4016(a)(2)) is amended by striking ``September 30, 1997'' and 
inserting ``September 30, 1999''.

SEC. 503. 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, 1996'' and 
inserting ``September 30, 1999''.

SEC. 504. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.

    Subsection (c) of section 1376 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4127(c)) is amended to read as follows:
    ``(c) For studies under this title, there are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
1998 and 1999, which shall remain available until expended.''.

              TITLE VI--NATIVE AMERICAN HOUSING ASSISTANCE

SEC. 601. 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''.

SEC. 602. 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''.

SEC. 603. 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)''.

SEC. 604. UNITED STATES HOUSING ACT OF 1937.

    (a) In General.--Section 501(b) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (110 Stat. 4042) is 
amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) through (11) as 
        paragraphs (4) through (10), respectively.
    (b) 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).

SEC. 605. MISCELLANEOUS.

    (a) 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.''.
    (b) 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''.
    (c) Clarification of Certain Exemptions.--Section 101(c) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4111(c)) is amended by adding at the end the following: 
``This subsection applies only to rental dwelling units (other than 
lease-purchase dwelling units) developed under--
            ``(1) the United States Housing Act of 1937 (42 U.S.C. 1437 
        et seq.); or
            ``(2) this Act.''.
    (d) Applicability.--Section 101(d)(1) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4111(d)(1)) is amended by inserting before the semicolon at the end the 
following: ``, except that this paragraph only applies to rental 
dwelling units (other than lease-purchase dwelling units) developed 
under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or 
under this Act''.
    (e) 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--
            (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (2) in paragraph (1)(A), as so designated by paragraph (1) 
        of this subsection, by adding ``or'' at the end;
            (3) by striking ``(2)'' and inserting ``(B)''; and
            (4) by striking ``(3)'' and inserting ``(2)''.
    (f) 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''.
    (g) 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--
            (1) by striking ``Indian tribes'' and inserting ``federally 
        recognized tribes and the tribally designated housing entities 
        of those tribes''; and
            (2) by striking ``under this subsection'' and inserting 
        ``under this Act''.
    (h) 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--
            (1) in subparagraph (A), by striking ``and'' at the end; 
        and
            (2) 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''.
    (i) 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''.
    (j) Availability of Records.--Section 208 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4138) 
is amended--
            (1) in subsection (a), by striking ``paragraph (2)'' and 
        inserting ``subsection (b)''; and
            (2) in subsection (b), by striking ``paragraph (1)'' and 
        inserting ``subsection (a)''.
    (k) 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.
    (l) 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''.
    (m) 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--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) 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).''.
    (n) Public Availability of Information.--
            (1) 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.''.
            (2) 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.''.
    (o) Non-Federal Funds.--Section 520(l)(5)(B) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 11903a(l)(5)(B)) is 
amended by striking ``and Indian housing authorities'' and inserting 
``and units of general local government''.
    (p) 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''.
    (q) Indian Housing Early Childhood Development Program.--
            (1) Repeal.--Section 518 of the Cranston-Gonzalez National 
        Affordable Housing Act (12 U.S.C. 1701z-11 note) is repealed.
            (2) Technical correction.--
                    (A) In general.--Section 501(d)(1) of the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996 (110 Stat. 4042), and the amendment made by 
                that section, is repealed.
                    (B) Applicability.--Section 519 of Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                1437a-1) shall be applied and administered as if 
                section 501(d)(1) of the Native American Housing 
                Assistance and Self-Determination Act of 1996 (104 
                Stat. 4042) had not been enacted.
            (3) Effective date.--This subsection and the amendments 
        made by this subsection shall be construed to have taken effect 
        on October 26, 1996.
    (r) Tribal Eligibility Under the Drug Elimination Program.--The 
Public and Assisted Housing Elimination Act of 1990 (42 U.S.C. 11901 et 
seq.) is amended--
            (1) in section 5123, by inserting ``Indian tribes,'' after 
        ``tribally designated housing entities,'';
            (2) in section 5124(a)(7), by inserting ``, Indian tribe,'' 
        after ``agency'';
            (3) in section 5125(a), by inserting ``Indian tribe,'' 
        after ``entity,''; and
            (4) in section 5126, by adding at the end the following:
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given that term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).''.
    (s) Reference in the Public and Assisted Housing Drug Elimination 
Act of 1990.--Section 5126(4)(D) of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11905(4)(D)) is amended by 
inserting ``of 1996'' before the period.

            Attest:

                                                             Secretary.
105th CONGRESS

  1st Session

                                 S. 562

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