[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2860 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2860

 To authorize the Secretary of Housing and Urban Development to carry 
  out a pilot program to provide homeownership assistance to disabled 
                               families.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 1999

    Mr. Green of Wisconsin introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To authorize the Secretary of Housing and Urban Development to carry 
  out a pilot program to provide homeownership assistance to disabled 
                               families.

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

SECTION 1. PILOT PROGRAM.

    (a) In General.--A public housing agency providing tenant-based 
assistance on behalf of an eligible family under section 8 of the 
United States Housing Act of 1937 may provide assistance for a disabled 
family that purchases a dwelling unit (including a dwelling unit under 
a lease-purchase agreement) that will be owned by 1 or more members of 
the disabled family and will be occupied by the disabled family, if the 
disabled family--
            (1) purchases the dwelling unit before the expiration of 
        the 3-year period beginning on the date of the enactment of 
        this Act;
            (2) demonstrates that the disabled family has income from 
        employment or other sources (including public assistance), as 
        determined in accordance with requirements of the Secretary, 
        that is not less than twice the payment standard established by 
        the public housing agency (or such other amount as may be 
        established by the Secretary);
            (3) except as provided by the Secretary, demonstrates at 
        the time the disabled family initially receives tenant-based 
        assistance under this Act that one or more adult members of the 
        disabled family have achieved employment for the period as the 
        Secretary shall require;
            (4) participates in a homeownership and housing counseling 
        program provided by the agency; and
            (5) meets any other initial or continuing requirements 
        established by the public housing agency in accordance with 
        requirements established by the Secretary.
    (b) Determination of Amount of Assistance.--
            (1) In general.--
                    (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 disabled family.
                            (ii) 10 percent of the monthly income of 
                        the disabled family.
                            (iii) If the disabled 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 disabled family, is specifically 
                        designated by that agency to meet the housing 
                        costs of the disabled 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).
            (2) Calculation of amount.--
                    (A) Low-income families.--A disabled family that is 
                a low-income family shall be eligible to receive 100 
                percent of the amount calculated under paragraph (1).
                    (B) Income between 81 and 89 percent of median.--A 
                disabled family whose income is between 81 and 89 
                percent of the median for the area shall be eligible to 
                receive 66 percent of the amount calculated under 
                paragraph (1).
                    (C) Income between 90 and 99 percent of median.--A 
                disabled family whose income is between 90 and 99 
                percent of the median for the area shall be eligible to 
                receive 33 percent of the amount calculated under 
                paragraph (1).
                    (D) Income more than 99 percent of median.--A 
                disabled family whose income is more than 99 percent of 
                the median for the area shall not be eligible to 
                receive assistance under this Act.
    (c) Inspections and Contract Conditions.--
            (1) In general.--Each contract for the purchase of a 
        dwelling unit to be assisted under this Act shall--
                    (A) provide for pre-purchase inspection of the 
                dwelling unit by an independent professional; and
                    (B) require that any cost of necessary repairs be 
                paid by the seller.
            (2) Annual inspections not required.--The requirement under 
        subsection (o)(8)(A)(ii) of the United States Housing Act of 
        1937 for annual inspections shall not apply to dwelling units 
        assisted under this Act.
    (d) Other Authority of the Secretary.--The Secretary may--
            (1) limit the term of assistance for a disabled family 
        assisted under this Act;
            (2) provide assistance for a disabled family for the entire 
        term of a mortgage for a dwelling unit if the disabled family 
        remains eligible for such assistance for such term; and
            (3) modify the requirements of this Act as the Secretary 
        determines to be necessary to make appropriate adaptations for 
        lease-purchase agreements.
    (e) Assistance Payments Sent to Lender.--The Secretary shall remit 
assistance payments under this Act directly to the mortgagee of the 
dwelling unit purchased by the disabled family receiving such 
assistance payments.
    (f) Inapplicability of Certain Provisions.--Assistance under this 
Act shall not be subject to the requirements of the following 
provisions:
            (1) Subsection (c)(3)(B) of section 8 of the United States 
        Housing Act of 1937.
            (2) Subsection (d)(1)(B)(i) of section 8 of the United 
        States Housing Act of 1937.
            (3) Any other provisions of section 8 of the United States 
        Housing Act of 1937 governing maximum amounts payable to owners 
        and amounts payable by assisted families.
            (4) Any other provisions of section 8 of the United States 
        Housing Act of 1937 concerning contracts between public housing 
        agencies and owners.
            (5) Any other provisions of the United States Housing Act 
        of 1937 that are inconsistent with the provisions of this Act.
    (g) Reversion to Rental Status.--
            (1) FHA-insured mortgages.--If a disabled family receiving 
        assistance under this Act for purchase of a dwelling unit 
        defaults under a mortgage for the dwelling unit insured by the 
        Secretary under the National Housing Act, the disabled family 
        may not continue to receive rental assistance under section 8 
        of the United States Housing Act of 1937 unless the disabled 
        family--
                    (A) transfers to the Secretary marketable title to 
                the dwelling unit;
                    (B) moves from the dwelling unit within the period 
                established or approved by the Secretary; and
                    (C) agrees that any amounts the disabled family is 
                required to pay to reimburse the escrow account under 
                section 23(d)(3) of the United States Housing Act of 
                1937 may be deducted by the public housing agency from 
                the assistance payment otherwise payable on behalf of 
                the disabled family.
            (2) Other mortgages.--If a disabled family receiving 
        assistance under this Act defaults under a mortgage not insured 
        under the National Housing Act, the disabled family may not 
        continue to receive rental assistance under section 8 of the 
        United States Housing Act of 1937 unless it complies with 
        requirements established by the Secretary.
            (3) All mortgages.--A disabled family receiving assistance 
        under this Act that defaults under a mortgage may not receive 
        assistance under this Act for occupancy of another dwelling 
        unit owned by 1 or more members of the disabled family.
            (4) Exception.--This subsection shall not apply if the 
        Secretary determines that the disabled family receiving 
        assistance under this Act defaulted under a mortgage due to 
        catastrophic medical reasons.
    (h) Regulations.--As soon as practicable after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement this Act. Such regulations may not prohibit any public 
housing agency providing tenant-based assistance on behalf of an 
eligible family under section 8 of the United States Housing Act of 
1937 from participating in the pilot program under this Act.
    (i) Definition of Disabled Family.--For the purposes of this Act, 
the term ``disabled family'' has the meaning given the term ``person 
with disabilities'' in section 811(k)(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8013(k)(2)).
                                 <all>