[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3995 Introduced in House (IH)]

  2d Session
                                H. R. 3995

  To amend and extend certain laws relating to housing and community 
                  opportunity, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2002

   Mrs. Roukema (for herself, Mr. Green of Wisconsin, Mr. Oxley, Mr. 
Andrews, Mr. Lucas of Kentucky, Mr. Bereuter, Mr. Bachus, Mr. King, Mr. 
Ney, Mr. Barr of Georgia, Mrs. Kelly, Mr. Riley, Mr. Gary G. Miller of 
California, Mr. Cantor, Mr. Grucci, Mr. Rogers of Michigan, Mr. Tiberi, 
Mr. Leach, Mr. Shays, Mr. LaTourette, Mr. Jones of North Carolina, Ms. 
 Hart, Mr. Ferguson, and Mr. Pickering) introduced the following bill; 
   which was referred to the Committee on Financial Services, and in 
    addition to the Committee on the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To amend and extend certain laws relating to housing and community 
                  opportunity, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing 
Affordability for America Act of 2002''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
             TITLE I--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 101. Affordable housing production and preservation.
Sec. 102. Removal of fair market rents from rent level determinations.
Sec. 103. Median income for rent determinations.
Sec. 104. 3-year inspection cycle for tax credit projects.
Sec. 105. Repeal of limitations on program assistance as percentage of 
                            operating budget.
Sec. 106. Eligibility of room additions for use for grandparents and 
                            grandchildren.
Sec. 107. Program year for matching contributions.
Sec. 108. Membership of boards of eligible community housing 
                            development organizations.
Sec. 109. Monitoring of compliance.
Sec. 110. Funding eligibility for secular activities carried out by 
                            religious organizations.
                    TITLE II--FHA MORTGAGE INSURANCE

       Subtitle A--Multifamily Housing and Health Care Facilities

Sec. 201. Indexing of multifamily mortgage limits.
Sec. 202. High-cost areas.
Sec. 203. Insurance for integrated service facilities mortgages.
Sec. 204. Insurance for mortgages for integrated service facilities 
                            owned in connection with hospitals.
Sec. 205. Insurance for mortgages for refinancing debt of existing 
                            integrated service facilities.
Sec. 206. Standards and need for health care facility mortgage 
                            insurance.
                   Subtitle B--Single Family Housing

Sec. 221. Downpayment simplification.
Sec. 222. Reduced downpayment requirements for loans for teachers and 
                            public safety officers.
Sec. 223. Community partners next door program.
Sec. 224. Public safety officer home ownership in high-crime areas.
Sec. 225. Servicing of HUD-owned mortgages.
Sec. 226. Risk-based capital levels for Mutual Mortgage Insurance Fund.
Sec. 227. Hybrid adjustable rate mortgages.
Sec. 228. Uniform national loan limit for home equity conversion 
                            mortgages.
Sec. 229. Prohibition of investor and nonprofit owners under 
                            rehabilitation loan program.
Sec. 230. Rehabilitation loan advances.
Sec. 231. Nonprofit purchasers under property disposition.
Sec. 232. Extension of holding period.
Sec. 233. Fraud in loan and credit applications.
    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

Sec. 301. Modernization demonstration for section 236 elderly projects.
Sec. 302. Service coordinators for supportive housing for persons with 
                            disabilities.
Sec. 303. Eligibility of religious organizations as project owners.
         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

Sec. 401. Thrifty production vouchers.
Sec. 402. Monthly rental amount.
Sec. 403. Flexibility to assist hard-to-house families.
Sec. 404. Prohibition on re-screening of tenants.
Sec. 405. PHA administrative fees.
Sec. 406. Ensuring ability to use enhanced vouchers.
Sec. 407. Extension of manufactured housing demonstration program.
Sec. 408. Extension of project-based section 8 contract renewals.
                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

Sec. 501. Waiver of resident commissioner requirement.
Sec. 502. PHA joint ventures.
Sec. 503. Third-party public housing assessment system.
Sec. 504. Public housing agency plans for small public housing 
                            agencies.
Sec. 505. Development-based subsidies.
               Subtitle B--HOPE VI Revitalization Program

Sec. 521. Selection criteria.
Sec. 522. Authorization of appropriations.
Sec. 523. Extension of program.
                  TITLE VI--HOMELESS HOUSING PROGRAMS

Sec. 601. Interagency Council on the Homeless.
Sec. 602. Federal Emergency Management Agency food and shelter program.
Sec. 603. Emergency shelter grants program.
Sec. 604. Supportive housing program.
Sec. 605. Section 8 assistance for single room occupancy dwellings.
Sec. 606. Shelter plus care.
Sec. 607. Amendments to table of contents.
                   TITLE VII--NATIVE AMERICAN HOUSING

Sec. 701. Reauthorization of Native American Housing and Self-
                            Determination Act of 1996.
                  TITLE VIII--HOUSING IMPACT ANALYSIS

Sec. 801. Applicability.
Sec. 802. Exception for certain banking rules.
Sec. 803. Statement of proposed rulemaking.
Sec. 804. Initial housing impact analysis.
Sec. 805. Final housing impact analysis.
Sec. 806. Avoidance of duplicative or unnecessary analyses.
Sec. 807. Preparation of analyses.
Sec. 808. Effect on other law.
Sec. 809. Procedure for waiver or delay of completion.
Sec. 810. Definitions.
Sec. 811. Development.
Sec. 812. Judicial review.
                    TITLE IX--OTHER HOUSING PROGRAMS

Sec. 901. GNMA guarantee fee.
Sec. 902. Housing counseling programs.
Sec. 903. Assistance for self-help housing providers.
Sec. 904. Housing opportunities for persons with AIDS.
Sec. 905. CDBG funding eligibility for secular activities carried out 
                            by religious organizations.
Sec. 906. Use of CDBG amounts for construction of tornado-safe shelter 
                            for manufactured housing parks.
Sec. 907. Use of CDBG amounts to administer renewal communities.
Sec. 908. Subsidy layering review.

             TITLE I--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 101. AFFORDABLE HOUSING PRODUCTION AND PRESERVATION.

    (a) Purpose.--The purpose of this section is to dramatically 
increase the production and preservation of mixed income rental housing 
affordable to extremely low-income and very low-income families.
    (b) Definition.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
            (1) by redesignating paragraph (25) as paragraph (26);
            (2) by redesignating paragraph (24) (as added by Public Law 
        102-229; 105 Stat. 1709; relating to insular areas) as 
        paragraph (25);
            (3) by redesignating paragraphs (9) through (21) as 
        paragraphs (10) through (22), respectively; and
            (4) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) The term ``extremely low-income families'' means very 
        low-income families whose incomes do not exceed 30 percent of 
        the median income for the area, 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 median for the area on the basis of the 
        Secretary's findings that such variations are necessary because 
        of prevailing levels of construction costs or fair market 
        rents, or unusually high or low family incomes.''.
    (c) Eligible Uses.--Section 212(a) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(a)) is amended--
            (1) in paragraph (2), by adding at the end the following 
        new sentence: ``This paragraph shall not apply to any funds 
        made available only for use under paragraph (4).''; and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Production and preservation.--
                    ``(A) In general.--Funds made available for use 
                under this paragraph shall be used by the participating 
                jurisdiction only for the production of new, or the 
                preservation of existing, rental housing for extremely 
                low- and very low-income families that qualifies as 
                affordable housing in accordance with section 215(c).
                    ``(B) Form of assistance.--Assistance provided by a 
                participating jurisdiction pursuant to this paragraph 
                may be provided in the form of grants or loans 
                (including grants and loans made through State and 
                local housing trust funds) and may only be used for 
                acquisition, new construction, reconstruction, or 
                moderate or substantial rehabilitation of affordable 
                housing described in subparagraph (A).
                    ``(C) Income targeting and rent.--
                            ``(i) Very low-income families.--All of the 
                        funds made available for use under this 
                        paragraph to a participating jurisdiction shall 
                        be used for providing dwelling units that may 
                        be occupied only by very low-income families.
                            ``(ii) Extremely low-income families.--Not 
                        less than 50 percent of any funds made 
                        available for use under this paragraph to a 
                        participating jurisdiction shall be used for 
                        providing dwelling units that may be occupied 
                        only by extremely low-income families.
                    ``(D) Rent.--Except as provided in subparagraph 
                (G), each family occupying a dwelling unit provided 
                using amounts made available for use under this 
                paragraph shall pay as a contribution toward rent 
                (excluding any Federal or State rental subsidy provided 
                on behalf of the family) not more than 40 percent of 
                the family's gross monthly income.
                    ``(E) Reuse.--Any funds made available to a 
                participating jurisdiction only for use under this 
                paragraph shall be placed under binding commitment for 
                use for production or preservation of affordable rental 
                housing in accordance with this paragraph within 18 
                months after the last day of the month in which such 
                funds are deposited in the jurisdiction's HOME 
                Investment Trust Fund, except that the Secretary may 
                extend such period by not more than 6 months pursuant 
                to a request by the participating jurisdiction. 
                Expiration of such period (including any such 
                extension, if applicable) shall be considered, for 
                purposes of section 218(g), to be expiration of the 24-
                month period referred to in such section, except that 
                any funds made available for use under this paragraph 
                shall be reallocated only for use under this 
                paragraph.''.
                    ``(F) Qualification as affordable housing.--
                Subparagraphs (A), (B), and (C) of section 215(a)(1) 
                shall not apply to housing that is assisted with 
                amounts made available under this paragraph.
                    ``(G) Increases in tenant income.--Housing that is 
                assisted with amounts made available under section 
                212(a)(4) shall qualify as affordable housing despite a 
                temporary noncompliance with clause (i) or (ii) of 
                subparagraph (C) if such noncompliance is caused by 
                increases in the incomes of existing tenants and if 
                actions satisfactory to the Secretary are being taken 
                to ensure that all vacancies are filled in accordance 
                with subparagraph (C) until such noncompliance is 
                corrected. Tenants who no longer qualify as very low-
                income families shall pay as rent the lesser of the 
                amount payable by the tenant under State or local law 
                or 40 percent of the family's gross monthly income, as 
                recertified annually. The preceding sentence shall not 
                apply with respect to funds made available under this 
                Act for units that have been allocated a low-income 
                housing tax credit by a housing credit agency pursuant 
                to section 42 of the Internal Revenue Code 1986.''.
    (d) Allocation.--Section 217 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12747) is amended--
            (1) in subsection (a), by inserting after ``In General.--'' 
        the following: ``Except with respect to amounts subject to 
        allocation under subsection (e)''; and
            (2) by adding at the end the following new subsection:
    ``(e) Allocation of Amounts for Production and Preservation.--
            ``(1) In general.--Funds made available for use only under 
        section 212(a)(4) shall be allocated in accordance with the 
        formula established under paragraph (2). Of such funds made 
        available under the preceding sentence, the Secretary shall 
allocate 60 percent among units of general local government and 40 
percent among States.
            ``(2) Formula.--The Secretary shall establish in regulation 
        an allocation formula that reflects each jurisdiction's share 
        of total need among participating jurisdictions for an 
        increased supply of affordable housing for extremely low- and 
        very low-income families, as identified by objective measures 
        of inadequate housing supply, which shall include low vacancy 
        rates, low turnover of units with rents below fair market rents 
        established under section 8 of the United States Housing Act of 
        1937, a high proportion of substandard housing, the cost of 
        producing housing, and other measures that the Secretary 
        considers appropriate.
            ``(3) Source of data.--The data to be used for formula 
        allocation of funds under this subsection within a fiscal year 
        shall be data obtained from a standard source that are 
        available to the Secretary 90 days before the beginning of that 
        fiscal year.
            ``(4) Consultation.--The Secretary shall develop the 
        formula under paragraph (2) in ongoing consultation with (A) 
        the Subcommittee on Housing and Community Opportunity of the 
        Committee on Financial Services of the House of 
        Representatives, (B) the Subcommittee on Housing and 
        Transportation of the Committee on Banking, Housing, and Urban 
        Affairs of the Senate, and (C) organizations representing 
        States and units of general local government. Not less than 60 
        days before publishing a formula for comment, the Secretary 
        shall submit a copy of the formula the Secretary intends to 
        propose to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate.''.
    (e) Matching Requirements.--Section 220 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12750) is amended by adding 
at the end the following new subsection:
    ``(e) Production and Preservation.--In the case of affordable 
housing assisted under section 212(a)(4):
            ``(1) Subgrantee contributions.--Any contributions to the 
        housing made by subgrantees of the participating jurisdiction 
        using amounts made available under this title for such housing 
        shall be considered contributions made by the participating 
        jurisdiction, for purposes of this section.
            ``(2) Use of tax credits and cdbg amounts.--In addition to 
        contributions specified in subsection (c), contributions for 
        such housing may be in the form of--
                    ``(A) any tax credits under State or Federal law; 
                and
                    ``(B) notwithstanding subsection (c)(1), any funds 
                from a grant made under section 106 of the Housing and 
                Community Development Act of 1974.
            ``(3) Waiver for poor and rural communities.--The Secretary 
        may reduce or waive the matching requirement under subsection 
        (a) with respect to any participating jurisdiction that--
                    ``(A) is located in a rural area; or
                    ``(B) has certified that it is in fiscal distress 
                or severe fiscal distress for purposes of this 
                section.''.
    (f) Authorization of Appropriations.--Section 205 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended--
            (1) by inserting ``(a) In General.--'' before ``There are 
        authorized''; and
            (2) by adding at the end the following new subsection:
    ``(b) Production and Preservation of Affordable Housing.--There are 
authorized to be appropriated for allocation under section 217(e) for 
use only for production and preservation of affordable rental housing 
under section 212(4) any unobligated balances from amounts appropriated 
for fiscal year 2004 or any fiscal year thereafter for assistance under 
section 8 of the United States Housing Act of 1937 and that are 
recaptured.''.

SEC. 102. REMOVAL OF FAIR MARKET RENTS FROM RENT LEVEL DETERMINATIONS.

    (a) Definitions.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
            (1) in paragraph (9), by striking ``or fair market 
        rents,''; and
            (2) in paragraph (10), by striking ``or fair market 
        rents,''.
    (b) Income Targeting.--Section 214(1)(A) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12744(1)(A)) is amended by 
striking ``or fair market rent,''.
    (c) Qualification as Affordable Housing.--Section 215(a)(1)(A) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(a)(1)(A)) is amended--
            (1) by striking ``the lesser of (i) the existing fair 
        market rent for comparable units in the area as established by 
        the Secretary under section 8 of the United States Housing Act 
        of 1937, or (ii) a rent that does not exceed'' and inserting 
        ``the amount that is equal to''; and
            (2) by striking ``or fair market rents,''.

SEC. 103. MEDIAN INCOME FOR RENT DETERMINATIONS.

    Section 215(a)(1)(A) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12745(a)(1)(A)) is amended--
            (1) by inserting ``or State, whichever is greater'' before 
        the second comma; and
            (2) by inserting ``or State, whichever is greater,'' before 
        ``on the basis''.

SEC. 104. 3-YEAR INSPECTION CYCLE FOR TAX CREDIT PROJECTS.

    Subsection (b) of section 226 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12756) is amended to read as follows:
    ``(b) Periodic Monitoring.--
            ``(1) Requirement.--Each participating jurisdiction shall 
        review the activities of owners of affordable housing for 
        rental that is assisted under this title to assess compliance 
        with the requirements of this title. Such review shall be 
        conducted in compliance with the provisions of paragraph (2) 
        (relating to frequency) and shall include on-site inspection to 
determine compliance with housing codes and other applicable 
regulations.
            ``(2) Frequency.--The review required by paragraph (1) 
        shall be conducted not less frequently than--
                    ``(A) except as provided in subparagraph (B), 
                annually; and
                    ``(B) in the case of affordable housing for rental 
                that has been allocated a low-income housing tax credit 
                by a housing credit agency pursuant to section 42 of 
                the Internal Revenue Code 1986 and is not considered 
                (under such regulations as the Secretary shall 
                prescribe) to be high-risk housing, once every 3 years, 
                or more often as may be required under the regulations 
                issued pursuant to such section 42.
            ``(3) Inclusion in performance report.--The results of each 
        review of a participating jurisdiction shall be included in the 
        performance report of the jurisdiction that is submitted under 
        section 108(a) for the year in which the review is conducted 
        and shall be made available to the public.''.

SEC. 105. REPEAL OF LIMITATIONS ON PROGRAM ASSISTANCE AS PERCENTAGE OF 
              OPERATING BUDGET.

    (a) Housing Education and Organizational Support.--Section 233(d) 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12773(d)) is amended--
            (1) by striking ``may not--'' and all that follows through 
        ``(1)'' and inserting ``may not''; and
            (2) by striking ``; or'' at the end of paragraph (1) and 
        all that follows through the end of paragraph (2) and inserting 
        a period.
    (b) Other Support for State and Local Housing Strategies.--The 
first sentence of section 243(b) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12783(b)) is amended by striking 
``and shall provide not more than 20 percent of the operating budget of 
the contracting organization in any one year''.

SEC. 106. ELIGIBILITY OF ROOM ADDITIONS FOR USE FOR GRANDPARENTS AND 
              GRANDCHILDREN.

    Section 104(8) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704(8)) is amended by adding at the end the following 
new sentence: ``Such term also includes an additional room in, or a 
cottage housing opportunity unit installed adjacent to, an existing 1- 
to 4-family dwelling, that is necessary to permit the habitation, with 
the low-income family occupying the dwelling, of an elderly person who 
is a relative of the family and to avoid placement of such relative in 
an institutionalized setting, foster care, or other out-of-home 
setting.''.

SEC. 107. PROGRAM YEAR FOR MATCHING CONTRIBUTIONS.

    Section 220 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12750) is amended--
            (1) in subsection (a)--
                    (A) by striking ``a fiscal year'' and inserting ``a 
                program year of the jurisdiction''; and
                    (B) by striking ``such fiscal year'' and inserting 
                ``such program year''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``fiscal year'' 
                and inserting ``program year of the jurisdiction'';
                    (B) in paragraph (3), by striking ``fiscal year'' 
                each place such term appears and inserting ``program 
                year''; and
                    (C) in paragraph (5), by striking ``fiscal year'' 
                and inserting ``program year of the jurisdiction''.

SEC. 108. MEMBERSHIP OF BOARDS OF ELIGIBLE COMMUNITY HOUSING 
              DEVELOPMENT ORGANIZATIONS.

    Section 104(6) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704(6)) is amended by adding at the end the following: 
``In establishing requirements for an organization to be considered a 
community housing development organization for purposes of this Act, 
the Secretary may not prohibit, limit, or restrict membership on the 
board by public employees who are not elected or appointed or who do 
not exercise policy-making or policy-determining functions.''.

SEC. 109. MONITORING OF COMPLIANCE.

    (a) Authority and Agreements.--Section 226 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12756) is amended--
            (1) in the second sentence of subsection (a)--
                    (A) by striking ``and''; and
                    (B) by inserting before the period at the end the 
                following: ``, and (3) such fees as may be established 
                by the participating jurisdiction pursuant to 
                subsection (c)'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Monitoring Fees.--A participating jurisdiction may establish 
and charge fees to affordable housing projects assisted under this 
title for costs of monitoring compliance with the provisions of this 
title.''.
    (b) Use of Investment.--Section 212 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(c)), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new subsection:
    ``(h) Monitoring Fees.--Monitoring fees under section 226(c) for an 
affordable housing project may be paid for from amounts made available 
under this subtitle to the project, in accordance with an agreement 
pursuant to section 226(a).''.

SEC. 110. FUNDING ELIGIBILITY FOR SECULAR ACTIVITIES CARRIED OUT BY 
              RELIGIOUS ORGANIZATIONS.

    Title II of the Cranston-Gonzalez National Affordable Housing Act 
is amended--
            (1) in section 202(10) (42 U.S.C. 12721(10)), by inserting 
        ``religious organizations,'' after ``trade unions,''; and
            (2) in section 212 (42 U.S.C. 12742), as amended by the 
        preceding provisions of this Act, by adding at the end the 
        following new subsection:
    ``(g) Eligible Subrecipients.--Funds made available under this 
subtitle may be provided to religious organizations, or organizations 
having religious purposes, for carrying out secular activities that 
qualify under this section as eligible uses for such funds.''.

                    TITLE II--FHA MORTGAGE INSURANCE

       Subtitle A--Multifamily Housing and Health Care Facilities

SEC. 201. INDEXING OF MULTIFAMILY MORTGAGE LIMITS.

    (a) Section 207 Limits.--Section 207(c)(3) of the National Housing 
Act (12 U.S.C. 1713(c)(3)) is amended--
            (1) by striking ``$11,250'' and inserting ``$17,460'';
            (2) by inserting before ``; and except that'' the 
        following: ``; except that the Secretary shall adjust each such 
        dollar amount limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant to this 
        provision) effective January 1 of each year (beginning in 2003) 
        in accordance with the percentage increase, if any, during the 
        12-month period ending with the preceding October, in the 
        Annual Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce''; and
            (3) by inserting after ``foregoing dollar amount 
        limitations contained in this paragraph'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this paragraph)''.
    (b) Section 213 Limits.--Section 213(b)(2) of the National Housing 
Act (12 U.S.C. 1715e(b)(2)) is amended--
            (1) by striking ``$38,025'', ``$42,120'', ``$50,310'', 
        ``$62,010'', and ``$70,200'', and inserting ``$41,207'', 
        ``$47,511'', ``$57,300'', ``$73,343'', and ``$81,708'', 
        respectively;
            (2) by striking ``$49,140'', ``$60,255'', ``$75,465'', and 
        ``$85,328'', and inserting ``$49,710'', ``$60,446'', 
        ``$78,197'', and ``$85,836'', respectively;
            (3) by inserting after the colon at the end of the first 
        proviso the following: ``Provided further, That the Secretary 
        shall adjust each such dollar amount limitation set forth in 
        this paragraph (as such limitation may have been previously 
        adjusted pursuant to this provision) effective January 1 of 
        each year (beginning in 2003) in accordance with the percentage 
        increase, if any, during the 12-month period ending with the 
        preceding October, in the Annual Construction Cost Index of the 
        Bureau of the Census of the Department of Commerce''; and
            (4) by inserting after ``foregoing dollar amount 
        limitations contained in this paragraph'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this paragraph)''.
    (c) Section 220 Limits.--Section 220(d)(3)(B)(iii) of the National 
Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
            (1) by inserting after ``foregoing dollar amount 
        limitations contained in this clause'', the first place such 
        phrase appears, the following: ``(as such limitations may have 
        been previously adjusted pursuant to this clause)''.
            (2) by inserting after ``Provided,'' the following: ``That 
        the Secretary shall adjust each such dollar amount limitation 
        set forth in this clause (as such limitation may have been 
        previously adjusted pursuant to this provision) effective 
        January 1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month period 
        ending with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the Department of 
        Commerce: Provided further,''; and
            (3) by striking ``(as determined after the application of 
        the preceding proviso)'' and inserting ``(as such limitations 
        may have been previously adjusted pursuant to the preceding 
        proviso and as determined after application of any percentage 
        increase authorized in this clause relating to units with two, 
        three, or four or more bedrooms)''.
    (d) Section 221(d)(3) Limits.--Section 221(d)(3)(ii) of the 
National Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended--
            (1) by inserting before ``; and except that'' the 
        following: ``; except that the Secretary shall adjust each such 
dollar amount limitation set forth in this clause (as such limitation 
may have been previously adjusted pursuant to this provision) effective 
January 1 of each year (beginning in 2003) in accordance with the 
percentage increase, if any, during the 12-month period ending with the 
preceding October, in the Annual Construction Cost Index of the Bureau 
of the Census of the Department of Commerce''; and
            (2) by inserting after ``foregoing dollar amount 
        limitations contained in this clause'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this clause)''.
    (e) Section 221(d)(4) Limits.--Section 221(d)(4)(ii) of the 
National Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended--
            (1) by inserting before ``; and except that'' the 
        following: ``; except that the Secretary shall adjust each such 
        dollar amount limitation set forth in this clause (as such 
        limitation may have been previously adjusted pursuant to this 
        provision) effective January 1 of each year (beginning in 2003) 
        in accordance with the percentage increase, if any, during the 
        12-month period ending with the preceding October, in the 
        Annual Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce''; and
            (2) by inserting after ``foregoing dollar amount 
        limitations contained in this clause'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this clause)''.
    (f) Section 231 Limits.--Section 231(c)(2) of the National Housing 
Act (12 U.S.C. 1715v(c)(2)) is amended--
            (1) by inserting before ``; and except that'' the 
        following: ``; except that the Secretary shall adjust each such 
        dollar amount limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant to this 
        provision) effective January 1 of each year (beginning in 2003) 
        in accordance with the percentage increase, if any, during the 
        12-month period ending with the preceding October, in the 
        Annual Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce''; and
            (2) by inserting after ``foregoing dollar amount 
        limitations contained in this paragraph'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this paragraph)''.
    (g) Section 234 Limits.--Section 234(e)(3) of the National Housing 
Act (12 U.S.C. 1715y(e)(3)) is amended--
            (1) by inserting before ``; except that'' the second place 
        such phrase appears the following: ``; except that the 
        Secretary shall adjust each such dollar amount limitation set 
        forth in this paragraph (as such limitation may have been 
        previously adjusted pursuant to this provision) effective 
        January 1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month period 
        ending with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the Department of 
        Commerce'';
            (2) by inserting after ``each of the foregoing dollar 
        amounts'' the following: ``(as such amounts may have been 
        previously adjusted pursuant to this paragraph)''; and
            (3) by inserting after ``foregoing dollar amount 
        limitations contained in this paragraph'' the following: ``(as 
        such limitations may have been previously adjusted pursuant to 
        this paragraph and increased pursuant to the preceding 
        clause)''.

SEC. 202. HIGH-COST AREAS.

    In the National Housing Act, sections 207(c)(3) (12 U.S.C. 
1713(c)(3)), 213(b)(2) (12 U.S.C. 1715e(b)(2)), 220(d)(3)(B)(iii) (12 
U.S.C. 1715k(d)(3)(B)(iii)), 221(d)(3)(ii) (12 U.S.C. 1715l(d)(3)(ii)), 
221(d)(4)(ii) (12 U.S.C. 1715l(d)(4)(ii)), 231(c)(2) (12 U.S.C. 
1715v(c)(2)), and 234(e)(3) (12 U.S.C. 1715y(e)(3)) are each amended--
            (1) by striking ``140 percent'' and inserting ``170 
        percent''; and
            (2) by striking ``110 percent'' and inserting ``140 
        percent''.

SEC. 203. INSURANCE FOR INTEGRATED SERVICE FACILITIES MORTGAGES.

    Section 232 of the National Housing Act (12 U.S.C. 1715w) is 
amended--
            (1) in subsection (a)(2)--
                    (A) by striking ``nevertheless''; and
                    (B) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) The development of integrated service facilities for 
        the care and treatment of the elderly and other persons in need 
        of health care and related services, but who do not require 
        hospital care, and the support of health care facilities which 
        provide such health care and related services (including those 
        that support hospitals (as defined in section 242(b))).'';
            (2) in subsection (b)--
                    (A) in paragraph (6)--
                            (i) by striking subparagraph (A) and 
                        inserting the following new subparagraph:
                    ``(A) meets all applicable licensing and regulatory 
                requirements of the State, or if there is no State law 
                providing for such licensing and regulation by the 
                State, meets all applicable licensing and regulatory 
                requirements of the municipality or other political 
                subdivision in which the facility is located, or, in 
                the absence of any such requirements, meets any 
                underwriting requirements of the Secretary for such 
                purposes;''; and
                            (ii) in subparagraph (C), by striking 
                        ``and'' at the end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(8) the term `integrated service facility' means a 
        facility that--
                    ``(A) provides integrated health care delivery 
                services designed and operated to provide medical, 
                convalescent, skilled and intermediate nursing, board 
                and care services, assisted living, rehabilitation, 
                custodial, personal care services, or any combination 
                thereof, to sick, injured, disabled, elderly, or infirm 
                persons, or provides services for the prevention of 
                illness, or any combination thereof;
                    ``(B) is designed, in whole or in part, to provide 
                a continuum of care, as determined by the Secretary, 
                for the sick, injured, disabled, elderly, or infirm;
                    ``(C) provides clinical services, outpatient 
                services, including community health services and 
                medical practice facilities and group practice 
                facilities, to sick, injured, disabled, elderly, or 
                infirm persons not in need of the services rendered in 
                other facilities insurable under this title, or for the 
                prevention of illness, or any combination thereof;
                    ``(D)(i) is designed, in whole or in part to 
                provide supportive or ancillary services to hospitals 
                (as defined in section 242(b)), which services may 
                include services provided by special use health care 
                facilities, professional office buildings, 
                laboratories, administrative offices, and other 
                facilities supportive or ancillary to health care 
                delivery by such hospitals; and
                    ``(ii) meets standards acceptable to the Secretary, 
                which may include standards governing licensure or 
                State or local approval and regulation of a mortgagor; 
                or
                    ``(E) provides any combination of the services 
                under subparagraphs (A) through (D).'';
            (3) in subsection (d)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by inserting ``board and care home,'' 
                        after ``rehabilitated nursing home,'';
                            (ii) by inserting ``integrated service 
                        facility,'' after ``assisted living facility,'' 
                        the first two places such term appears;
                            (iii) by inserting ``board and care home,'' 
                        after ``existing nursing home,''; and
                            (iv) by striking ``or a board and care 
                        home'' and inserting ``, board and care home, 
                        or integrated service facility'';
                    (B) in paragraph (2)
                            (i) in the matter preceding subparagraph 
                        (A), by inserting before the last comma the 
                        following: ``or a public body, public agency, 
                        or public corporation eligible under this 
                        section''; and
                            (ii) in subparagraph (B), by striking 
                        ``energy conservation measures'' and all that 
                        follows through ``Public Law 95-619)'' and 
                        inserting ``energy conserving improvements (as 
                        defined in section 2(a))''; and
                    (C) in paragraph (4)(C)(iii), by striking ``the 
                appropriate State'' and inserting ``any appropriate''; 
                and
            (4) in subsection (i)(1), by inserting ``integrated service 
        facilities,'' after ``assisted living facilities,''.

SEC. 204. INSURANCE FOR MORTGAGES FOR INTEGRATED SERVICE FACILITIES 
              OWNED IN CONNECTION WITH HOSPITALS.

    Section 242 of the National Housing Act (12 U.S.C. 1715z-7) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end;
                            (ii) by striking subparagraph (B); and
                            (iii) in subparagraph (C)--
                                    (I) by striking ``(C)'' and 
                                inserting ``(B)''; and
                                    (II) by striking ``and'' at the 
                                end''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) the term `integrated service facility' has the 
        meaning given the term in section 232(b).'';
            (2) in subsection (c), by striking ``title VII'' and 
        inserting ``title VI'';
            (3) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``operation'' the following: ``or that 
                covers an integrated service facility owned or to be 
                owned by an applicant or proposed mortgagor that also 
                owns a hospital in the same market area, including 
                equipment to be used in its operation,'';
                    (B) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        before the period the following: ``and who, in 
                        the case of a mortgage covering an integrated 
                        service facility, is also the owner of a 
                        hospital facility''; and
                            (ii) by adding at the end the following: 
                        ``A mortgage insured under this section 
                        covering an integrated service facility may 
                        only cover the real and personal property where 
                        the eligible facility will be located.''; and
                    (C) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``or 
                        integrated service facility'' before the comma; 
                        and
                            (ii) in paragraph (2)(B), by striking 
                        ``energy conservation measures'' and all that 
                        follows through ``Public Law 95-619)'' and 
                        inserting ``energy conserving improvements (as 
                        defined in section 2(a))''; and
            (4) in subsection (f), by inserting ``and public integrated 
        service facilities'' after ``public hospitals''.

SEC. 205. INSURANCE FOR MORTGAGES FOR REFINANCING DEBT OF EXISTING 
              INTEGRATED SERVICE FACILITIES.

    Section 223(f) of the National Housing Act (12 U.S.C. 1715n(f)) is 
amended--
            (1) in paragraph (1), by inserting ``existing integrated 
        service facility,'' after ``existing board and care home,''; 
        and
            (2) in paragraph (4)--
                    (A) by inserting ``existing integrated service 
                facility,'' after ``board and care home,'' each place 
                such term appears;
                    (B) in subparagraph (B), by inserting after 
                ``indebtedness'' the following: ``, pay any other costs 
                including repairs, maintenance, minor improvements, or 
                additional equipment that may be approved by the 
                Secretary,''; and
                    (C) in subparagraph (D)--
                            (i) by inserting ``existing'' before 
                        ``intermediate care facility''; and
                            (ii) by inserting ``existing'' before 
                        ``board and care home''.

SEC. 206. STANDARDS AND NEED FOR HEALTH CARE FACILITY MORTGAGE 
              INSURANCE.

    (a) Hospitals.--Paragraph (4) of section 242(d) of the National 
Housing Act (12 U.S.C. 1715z-7) is amended to read as follows:
            ``(4)(A) The Secretary, in conjunction with the Secretary 
        of Health and Human Services, shall require satisfactory 
        evidence that the hospital will be located in a State or 
        political subdivision of a State with reasonable minimum 
        standards of licensure and methods of operation for hospitals 
        and satisfactory assurance that such standards will be applied 
        and enforced with respect to the hospital.
            ``(B) The Secretary shall establish the means for 
        determining need and feasibility for the hospital. If the State 
        has an official procedure for determining need for hospitals, 
        the Secretary shall also require that such procedure be 
        followed before the application for insurance is submitted, and 
        the application shall document that need has also been 
        established under that procedure.''.
    (b) Nursing Homes, Intermediate Care Facilities, and Combined 
Facilities.--Section 232(d)(4) of the National Housing Act (12 U.S.C. 
1715w(d)(4)) is amended by striking the paragraph designation and all 
that follows through the end of subparagraph (A) and inserting the 
following:
            ``(4)(A)(i) The Secretary, in conjunction with the 
        Secretary of Health and Human Services, shall require 
        satisfactory evidence that a nursing home, intermediate care 
        facility, or combined nursing home and intermediate care 
        facility will be located in a State or political subdivision of 
        a State with reasonable minimum standards of licensure and 
        methods of operation for such homes, facilities, or combined 
        homes and facilities. The Secretary shall also require 
        satisfactory assurance that such standards will be applied and 
        enforced with respect to the home, facility, or combined home 
        or facility.
            ``(ii) The Secretary shall establish the means for 
        determining need and feasibility for the home, facility, or 
        combined home and facility. If the State has an official 
        procedure for determining need for such homes, facilities, or 
        combined homes and facilities, the Secretary shall also require 
        that such procedure be followed before the application for 
        insurance is submitted, and the application shall document that 
        need has also been established under that procedure.''.

                   Subtitle B--Single Family Housing

SEC. 221. DOWNPAYMENT SIMPLIFICATION.

    (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by realigning the matter 
                that precedes clause (ii) an additional 2 ems from the 
                left margin;
                    (B) in the matter that follows subparagraph 
                (B)(iii)--
                            (i) by striking the seventh sentence of 
                        such matter (relating to the maximum amount of 
                        a principal obligation of a mortgage) and all 
                        that follows through the end of the penultimate 
                        undesignated paragraph; and
                            (ii) by striking the second and third 
                        sentences of such matter; and
                    (C) by striking subparagraph (B);
            (2) by transferring and inserting subparagraph (A) of 
        paragraph (10) after subparagraph (A) of paragraph (2) and 
        amending such subparagraph by striking all of the matter that 
        precedes clause (i) and inserting the following:
                    ``(B) not to exceed an amount equal to the sum of--
                '';
            (3) by transferring and inserting the last undesignated 
        paragraph of paragraph (2) (relating to disclosure notice) 
        after subsection (e), realigning such transferred paragraph so 
        as to be flush with the left margin, and amending such 
        transferred paragraph by inserting ``(f) Disclosure of Other 
        Mortgage Products.--'' before ``In conjunction'';
            (4) by transferring and inserting the sentence that 
        constitutes the text of paragraph (10)(B) after the period at 
        the end of the first sentence that follows subparagraph (B) 
        (relating to the definition of ``area'') and amending such 
        transferred sentence by inserting ``(2)'' after ``this 
        paragraph''; and
            (5) by striking paragraph (10) (as amended by the preceding 
        provisions this section).
    (b) Conforming Amendments.--Section 245 of the National Housing Act 
(12 U.S.C. 1715z-10) is amended--
            (1) in subsection (a), by striking ``, or if the 
        mortgagor'' and all that follows through ``case of veterans''; 
        and
            (2) in subsection (b)(3), by striking ``, or, if the'' and 
        all that follows through ``for veterans,''.

SEC. 222. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND 
              PUBLIC SAFETY OFFICERS.

    (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended by adding at the end the following new 
paragraph:
            ``(11) Reduced downpayment requirements for teachers and 
        public safety officers.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                in the case of a mortgage described in subparagraph 
                (B)--
                            ``(i) the mortgage shall involve a 
                        principal obligation in an amount that does not 
                        exceed the sum of 99 percent of the appraised 
                        value of the property and the total amount of 
                        initial service charges, appraisal, inspection, 
                        and other fees (as the Secretary shall approve) 
                        paid in connection with the mortgage;
                            ``(ii) no other provision of this 
                        subsection limiting the principal obligation of 
                        the mortgage based upon a percentage of the 
                        appraised value of the property subject to the 
                        mortgage shall apply; and
                            ``(iii) the matter in paragraph (9) that 
                        precedes the first proviso shall not apply and 
                        the mortgage shall be executed by a mortgagor 
                        who shall have paid on account of the property 
                        at least 1 percent of the cost of acquisition 
                        (as determined by the Secretary) in cash or its 
                        equivalent.
                    ``(B) Mortgages covered.--A mortgage described in 
                this subparagraph is a mortgage--
                            ``(i) under which the mortgagor is an 
                        individual who--
                                    ``(I) is (aa) a teacher, or (bb) a 
                                public safety officer; and
                                    ``(II) has not, during the 12-month 
                                period ending upon the insurance of the 
                                mortgage, had any present ownership 
                                interest in a principal residence 
                                located in the jurisdiction described 
                                in clause (ii); and
                            ``(ii) made for a property that is located 
                        within the jurisdiction of--
                                    ``(I) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(aa), the local educational 
                                agency for the school in which the 
                                mortgagor is employed (or, in the case 
                                of a mortgagor employed in a private 
                                school, the local educational agency 
                                having jurisdiction for the area in 
                                which the private school is located); 
                                or
                                    ``(II) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(bb), the jurisdiction served by 
                                the public law enforcement 
agency, firefighting agency, or rescue or ambulance agency that employs 
the mortgagor.
                    ``(C) Program integrity.--Notwithstanding any other 
                provision of this paragraph and section 203(c)(3), the 
                Secretary may suspend the applicability of this 
                paragraph and such section for such period as the 
                Secretary considers appropriate if the Secretary 
                determines such suspension is necessary because of 
                fraud or other issues regarding program integrity.''.
    (b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of 
the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``Notwithstanding'' and inserting ``Except as 
        provided in paragraph (3) and notwithstanding''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Deferral and reduction of up-front premium.--In the case of 
any mortgage described in subsection (b)(11)(B):
            ``(A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not apply.
            ``(B) If, at any time during the 5-year period beginning on 
        the date of the insurance of the mortgage, the mortgagor ceases 
        to be a teacher or public safety officer (as such terms are 
        defined in section 201) or pays the principal obligation of the 
        mortgage in full, the Secretary shall at such time collect a 
        single premium payment in an amount equal to the amount of the 
        single premium payment that, but for this paragraph, would have 
        been required under paragraph (2)(A) of this subsection with 
        respect to the mortgage, as reduced by 20 percent of such 
        amount for each successive 12-month period completed during 
        such 5-year period before such cessation or prepayment 
        occurs.''.
    (c) Definitions.--Section 201 of the National Housing Act (12 
U.S.C. 1707) is amended--
            (1) by redesignating subsections (a) through (f) as 
        paragraphs (1) through (6), respectively;
            (2) by realigning each paragraph 2 ems from the left 
        margin; and
            (3) by adding at the end the following new paragraphs:
            ``(7) The term `public safety officer' has the meaning 
        given such term in section 1204 of the Omnibus Crime Control 
        and Safe Streets Act of 1968 (42 U.S.C. 3796b), except that 
        such term shall not include any officer serving a public agency 
        of the Federal Government.
            ``(8) The term `teacher' means an individual who is 
        employed on a part- or full-time basis as a teacher or 
        administrator in a public or private school that provides 
elementary or secondary education, as determined under State law, 
except that elementary education shall include pre-Kindergarten 
education, and except that secondary education shall not include any 
education beyond grade 12.
            ``(9) The term `local educational agency' has the meaning 
        given such term in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801)).''.
    (d) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 223. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

    (a) Discount and Downpayment Assistance for Teachers and Public 
Safety Officers.--Section 204(h) of the National Housing Act (12 U.S.C. 
1710(h)) is amended--
            (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) 50 percent discount for teachers and public safety 
        officers purchasing properties that are eligible assets.--
                    ``(A) Discount.--A property that is an eligible 
                asset and is sold, during fiscal years 2002 through 
                2006, to a teacher or public safety officer for use in 
                accordance with subparagraph (B) shall be sold at a 
                price that is equal to 50 percent of the appraised 
                value of the eligible property (as determined in 
                accordance with paragraph (6)(B)). In the case of a 
                property eligible for both a discount under this 
                paragraph and a discount under paragraph (6), the 
                discount under paragraph (6) shall not apply.
                    ``(B) Primary residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the primary residence of a teacher 
                or public safety officer.
                    ``(C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                            ``(i) to a unit of general local government 
                        or nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher or public safety officer; 
                        or
                            ``(ii) directly to a purchaser who is a 
                        teacher or public safety officer.
                    ``(D) Resale.--In the case of any purchase by a 
                unit of general local government or nonprofit 
                organization of an eligible property sold at a 
                discounted price under this paragraph, the sale 
                agreement under paragraph (8) shall--
                            ``(i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full benefit of the 
                        discount to the teacher or public safety 
                        officer obtaining the property; and
                            ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties to be subject 
                        to the requirements of subparagraph (B).
                    ``(E) Mortgage downpayment assistance.--If a 
                teacher or public safety officer purchases an eligible 
                property pursuant to a discounted sale price under this 
                paragraph and finances such purchase through a mortgage 
                insured under this title, notwithstanding any provision 
                of section 203 the downpayment on such mortgage shall 
                be $100.
                    ``(F) Prevention of undue profit.--The Secretary 
                shall issue regulations to prevent undue profit from 
                the resale of eligible properties in violation of the 
                requirement under subparagraph (B).
                    ``(G) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                            ``(i) The term `eligible property' means an 
                        eligible asset described in paragraph (2)(A) of 
                        this subsection.
                            ``(ii) The terms `teacher' and `public 
                        safety officer' have the meanings given such 
                        terms in section 201.
                    ``(H) Program integrity.--Notwithstanding any other 
                provision of this paragraph, the Secretary may suspend 
                the applicability of this paragraph for such period as 
                the Secretary considers appropriate if the Secretary 
                determines such suspension is necessary because of 
                fraud or other issues regarding program integrity.''.
    (b) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
            (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
            (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.
    (c) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 224. PUBLIC SAFETY OFFICER HOME OWNERSHIP IN HIGH-CRIME AREAS.

    (a) Program Authority.--The Secretary of Housing and Urban 
Development shall carry out a pilot program in accordance with this 
section to assist Federal, State, and local public safety officers 
purchasing homes in locally-designated high-crime areas.
    (b) Eligibility.--To be eligible for assistance under this section, 
a public safety officer shall agree, in writing, to use the residence 
purchased with such assistance as the primary residence of the public 
safety officer for not less than 3 years after the date of purchase.
    (c) Mortgage Assistance.--If a public safety officer purchases a 
home in locally-designated high-crime area and finances such purchase 
through a mortgage insured under title II of the National Housing Act 
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203 
or any other provision of the National Housing Act, the following shall 
apply:
            (1) Downpayment.--
                    (A) In general.--There shall be no downpayment 
                required if the purchase price of the property is not 
                more than the reasonable value of the property, as 
                determined by the Secretary.
                    (B) Purchase price exceeds value.--If the purchase 
                price of the property exceeds the reasonable value of 
                the property, as determined by the Secretary, the 
                required downpayment shall be the difference between 
                such reasonable value and the purchase price.
            (2) Closing costs.--The closing costs and origination fee 
        for such mortgage may be included in the loan amount.
            (3) Insurance premium payment.--There shall be one 
        insurance premium payment due on the mortgage. Such insurance 
        premium payment--
                    (A) shall be equal to 1 percent of the loan amount;
                    (B) shall be due and considered earned by the 
                Secretary at the time of the loan closing; and
                    (C) may be included in the loan amount and paid 
                from the loan proceeds.
    (d) Local Designation of High-Crime Areas.--
            (1) Criteria.--Any unit of local government may request 
        that the Secretary designate any area within the jurisdiction 
        of that unit of local government as a locally-designated high-
        crime area for purposes of this section if the proposed area--
                    (A) has a crime rate that is significantly higher 
                than the crime rate of the non-designated area that is 
                within the jurisdiction of the unit of local 
                government; and
                    (B) has a population that is not more than 25 
                percent of the total population of area within the 
                jurisdiction of the unit of local government.
            (2) Deadline for consideration of request.--Not later than 
        60 days after receiving a request under paragraph (1), the 
        Secretary shall approve or disapprove the request.
    (e) Public Safety Officer.--For purposes of this section, the term 
``public safety officer'' has the meaning given such term in section 
201 of the National Housing Act (12 U.S.C. 1707) (as amended by section 
222(c) of this Act), except that such term includes any officer serving 
a public agency of the Federal Government.
    (f) Program Integrity.--Notwithstanding any other provision of this 
section, the Secretary may suspend the applicability of this section 
for such period as the Secretary considers appropriate if the Secretary 
determines such suspension is necessary because of fraud or other 
issues regarding program integrity.
    (g) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the provisions of this section.
    (h) Sunset.--The Secretary shall not approve any application for 
assistance under this section that is received by the Secretary after 
the expiration of the 3-year period beginning on the date that the 
Secretary first makes available assistance under the pilot program 
under this section.

SEC. 225. SERVICING OF HUD-OWNED MORTGAGES.

    (a) HUD Requirement.--Section 204 of the National Housing Act (12 
U.S.C. 1710) is amended--
            (1) in subsection (a), by redesignating paragraphs (5) 
        through (9) as paragraphs (4) through (8), respectively; and
                    (2) by inserting after subsection (j) the following 
                new subsection:
    ``(k) Servicing Functions.--
            ``(1) Merger with rural housing loan program servicing.--To 
        provide for the servicing of HUD-held single family mortgages 
        with the same level of performance, effectiveness, and 
        efficiency with which servicing is conducted for single family 
        loans made under section 502 of the Housing Act of 1949 (42 
        U.S.C. 1472), the Secretary of Housing and Urban Development, 
        in consultation and coordination with the Secretary of 
        Agriculture, shall take such action as may be necessary to 
        combine and coordinate the functions and personnel for 
        servicing HUD-held single family mortgages with the functions 
        and personnel for servicing loans made under such section 502.
            ``(2) HUD-held single family mortgage.--For purposes of 
        this subsection, the term `HUD-held single family mortgage' 
        means a mortgage that--
                    ``(A) is made with respect to housing designed for 
                occupancy by one to four families; and
                    ``(B) is held by the Secretary of Housing and Urban 
                Development pursuant to payment of insurance benefits 
                under the National Housing Act.''.
    (b) Department of Agriculture Requirement.--Section 501 of the 
Housing Act of 1949 (42 U.S.C. 1471) is amended by adding at the end 
the following new subsection:
    ``(k) Servicing Functions.--
            ``(1) Merger with rural housing loan program servicing.--To 
        provide for the servicing of HUD-held single family mortgages 
        (as such term is defined in section 204(k)2) of the National 
        Housing Act (12 U.S.C. 1710(k)(2)) with the same level of 
        performance, effectiveness, and efficiency with which servicing 
        is conducted for single family loans made under section 502 of 
        this Act, the Secretary of Agriculture shall consult and 
        coordinate with the Secretary of Housing and Urban Development, 
        and shall take such other action, as may be necessary to 
        combine and coordinate the functions and personnel for 
        servicing HUD-held single family mortgages with the functions 
        and personnel for servicing loans made under section 502.''.

SEC. 226. RISK-BASED CAPITAL LEVELS FOR MUTUAL MORTGAGE INSURANCE FUND.

    (a) In General.--Subsection (f) of section 205 of the National 
Housing Act (12 U.S.C. 1711(f)) is amended to read as follows:
    ``(f) Minimum Adequate Capital Level for MMIF.--
            ``(1) In general.--The Secretary shall ensure that, at all 
        times, the Mutual Mortgage Insurance Fund maintains capital in 
        an amount equal to or greater than the minimum adequate capital 
        level, which shall be the amount equal to the sum of the 
        minimum basic capital ratio under paragraph (2) and the minimum 
        risk-based capital ratio under paragraph (3).
            ``(2) Minimum basic capital ratio.--The minimum basic 
        capital ratio under this paragraph is the amount that is equal 
        to one percent of the unamortized insurance-in-force.
            ``(3) Minimum risk-based capital ratio.--
                    ``(A) In general.--The minimum risk-based capital 
                ratio under this paragraph is the amount, established 
                pursuant to subparagraph (B), that would permit the 
                Mutual Mortgage Insurance Fund to withstand mortgage 
                defaults and prepayments associated with a broad range 
                of adverse economic circumstances, which shall 
                include--
                            ``(i) circumstances derived from historical 
                        regional and national experience in which 
                        mortgages insured under this Act experienced 
                        high rates of default and prepayment;
                            ``(ii) events that may plausibly occur in 
                        the future, notwithstanding that such events 
                        may not have occurred in the past, and which 
                        could result in high rates of mortgage defaults 
                        or prepayments, or both;
                            ``(iii) circumstances under which multiple 
                        such events occur simultaneously or in rapid 
                        succession.
                    ``(B) Consultation.--The Secretary, jointly with 
                the Director of the Office of Management and Budget, 
                and in consultation with the Director of the 
                Congressional Budget Office and the Comptroller General 
                of the United States, shall by regulation establish a 
                formula for determining the minimum risk-based capital 
ratio.
                    ``(C) Review and modification.--Not less than once 
                every 3 years, the Secretary shall review and modify 
                the set of adverse economic circumstances used to 
                establish the minimum risk-based capital ratio.
            ``(4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Capital.--The term `capital' means the 
                economic net worth of the Mutual Mortgage Insurance 
                Fund, as determined by the Secretary under the annual 
                audit required under section 538.
                    ``(B) Economic net worth.--The term `economic net 
                worth' means the current cash available to the Mutual 
                Mortgage Insurance Fund, plus the net present value of 
                all future cash inflows and outflows expected to result 
                from the outstanding mortgages in such Fund.
                    ``(C) Unamortized insurance-in-force.--The term 
                `unamortized insurance-in-force' means the original 
                insured amount of outstanding mortgages which are 
                insured under the Mutual Mortgage Insurance Fund.''.
    (b) Applicability.--The amendment made by this section is made on 
the date of the enactment of this Act, but shall apply beginning on 
October 1, 2004. The provisions of section 205(f) of the National 
Housing Act, as in effect immediately before the date of the enactment 
of this Act, shall continue to apply during the period beginning on 
such date of enactment and ending at the end of September 30, 2003.
    (c) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development, 
the Director of the Congressional Budget Office, and the Director of 
the Office of Management and Budget shall issue the regulations 
required under section 205(f)(3) of the National Housing Act (as 
amended by this section) establishing the formula for determining the 
minimum risk-based capital ratio.

SEC. 227. HYBRID ADJUSTABLE RATE MORTGAGES.

    Section 251(d)(1)(C) of the National Housing Act (12 U.S.C. 1715z-
16(d)(1)(C)) is amended by striking ``five or fewer years'' and 
inserting ``three or fewer years''.

SEC. 228. UNIFORM NATIONAL LOAN LIMIT FOR HOME EQUITY CONVERSION 
              MORTGAGES.

    Section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) 
is amended by striking ``1-family residences in the area in which the 
dwelling subject to the mortgage under this section is located'' and 
inserting ``a 1-family residence''.

SEC. 229. PROHIBITION OF INVESTOR AND NONPROFIT OWNERS UNDER 
              REHABILITATION LOAN PROGRAM.

    Section 203(g)(2) of the National Housing Act (12 U.S.C. 
1709(g)(2)) is amended--
            (1) by striking subparagraph (E);
            (2) in subparagraph (D), by inserting ``or'' after the 
        semicolon; and
            (3) by redesignating subparagraph (F) as subparagraph (E).

SEC. 230. REHABILITATION LOAN ADVANCES.

    Section 203(k)(3) of the National Housing Act (12 U.S.C. 
1709(k)(3)) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (2) by inserting after subparagraph (B) the following new 
        paragraph:
            ``(C) involve a loan agreement containing such terms and 
        conditions as the Secretary shall provide, including terms and 
        conditions that provide that the mortgagee shall be responsible 
        for choosing an inspector or consultant who shall be an agent 
        of the mortgagee and shall be responsible for approving 
        advances under the loan;''.

SEC. 231. NONPROFIT PURCHASERS UNDER PROPERTY DISPOSITION.

    (a) In General.--Section 204(g) of the National Housing Act (12 
U.S.C. 1710(g)) is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
    (2) by adding at the end the following new paragraph:
    ``(2) The Secretary shall require, as a condition of eligibility of 
any nonprofit organization for participation in any program of the 
Secretary for disposition of 1- to 4-family properties acquired by the 
Secretary pursuant to this Act, the Secretary shall require that such 
organization--
            ``(A) has nonprofit status as demonstrated by approval 
        under section 501(c)(3) of the Internal Revenue Code of 1986 
        (26 U.S.C. 501(c)(3)) or demonstrates that an application for 
        such status is currently pending approval; and
            ``(B) provide the Secretary with a copy of the application 
        for such status;
            ``(C) certify, on an annual basis, that the organization 
        has been apprised of the applicable rules and guidelines of the 
        Department of Housing and Urban Development and understands 
        such rules and guidelines; and
            ``(D) comply with such other requirements as the Secretary 
        may establish.''.
    (b) Assets in Revitalization Areas.--Section 204(h)(8)(D) (12 
U.S.C. 1710(h)(8)(D)) is amended--
            (1) by striking clause (ii) and inserting the following new 
        clause:
                            ``(ii)(I) has nonprofit status as 
                        demonstrated by approval under section 
                        501(c)(3) of the Internal Revenue Code of 1986 
                        (26 U.S.C. 501(c)(3)) or demonstrates that an 
                        application for such status is currently 
                        pending approval; and
                            ``(II) provides the Secretary with a copy 
                        of the application for such status;'';
            (2) in clause (iii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iv) certifies, on an annual basis, that 
                        the organization has been apprised of the 
                        applicable rules and guidelines of the 
                        Department of Housing and Urban Development and 
                        understands such rules and guidelines.''.

SEC. 232. EXTENSION OF HOLDING PERIOD.

    (a) In General.--Section 912(1) of the Housing and Urban 
Development Act of 1970 (12 U.S.C. 1709-2(1)) is amended by striking 
``one year'' and inserting ``18 months''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply only to defaults described in section 912(1) of the Housing and 
Urban Development Act of 1970 that occur after the date of the 
enactment of this Act.

SEC. 233. FRAUD IN LOAN AND CREDIT APPLICATIONS.

    Section 1014 of title 18, United States Code, is amended by 
inserting ``the Department of Housing and Urban Development,'' after 
``the Rural Development Administration or successor agency, ''.

    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

SEC. 301. MODERNIZATION DEMONSTRATION FOR SECTION 236 ELDERLY PROJECTS.

    (a) In General.--The Secretary of Housing and Urban Development (in 
this section referred to as the ``Secretary'') shall carry out a 
program to demonstrate the effectiveness of providing financial 
assistance for projects for the elderly that are assisted under section 
236 of the National Housing Act for meeting the modernization needs of 
such projects.
    (b) Eligible Projects.--Assistance provided under the demonstration 
program under this section may be provided only for a project that--
            (1)(A) is assisted, insured, or held by the Secretary or a 
        State or State agency under section 236 of the National Housing 
        Act (12 U.S.C. 1715z-1); or
            (B) is held by the Secretary and formerly insured under the 
        program referred to in paragraph (1); and
            (2) is reserved primarily for occupancy by elderly or 
        handicapped families.
    (c) Use of Assistance.--Assistance provided under the demonstration 
program under this section may be used only for repair, rehabilitation, 
and modernization needs of eligible projects under subsection (b), 
including--
            (1) improvements necessary to comply with health and safety 
        codes;
            (2) improvements necessary to comply with the Fair Housing 
        Act (42 U.S.C. 3601 et seq.); and
            (3) such other activities as the Secretary considers 
        appropriate.
    (d) Applications and Selection Criteria.--The Secretary shall 
provide for owners of eligible projects under subsection (b) to submit 
applications for assistance under the demonstration program under this 
section. The Secretary shall select applications for such assistance 
based upon need for such assistance, as determined according to 
selection criteria, which the Secretary shall establish.
    (e) Funding.--Any amounts made available for a fiscal year for 
grants under section 202b of the Housing Act of 1959 (12 U.S.C. 1701q-
2) that remain unobligated as of September 30, 2002, shall be available 
for assistance under the demonstration program under this section.
    (f) Termination.--No assistance may be provided under this section 
after September 30, 2005.

SEC. 302. SERVICE COORDINATORS FOR SUPPORTIVE HOUSING FOR PERSONS WITH 
              DISABILITIES.

    Section 683(2) of the Housing and Community Development Act of 1992 
(42 U.S.C. 13641(2)) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(H) ``housing that is assisted under section 811 
                of the Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 8013).''.

SEC. 303. ELIGIBILITY OF RELIGIOUS ORGANIZATIONS AS PROJECT OWNERS.

    (a) Supportive Housing for the Elderly.--Section 202 of the Housing 
Act of 1959 (12 U.S.C. 1701q) is amended--
            (1) in subsection (f), by inserting after and below 
        paragraph (7) the following:
``The selection criteria used by the Secretary shall specifically 
provide that religious organizations and organizations having religious 
purposes that qualify under subsection (k)(4) as private nonprofit 
organizations, may own projects assisted under this section.'';
            (2) in subsection (j), by adding at the end the following 
        new paragraph:
            ``(9) Eligibility of religious organizations as project 
        owners.--The Secretary may not prohibit religious organizations 
        or organizations having religious purposes that, under 
        subsection (k)(4) qualify as private nonprofit organizations, 
        from owning projects assisted under this section because of 
        their status as such religious organizations.''; and
            (3) in subsection (k)(4), by inserting after the period at 
        the end the following: ``Such term also includes a religious 
        organization or an organization having religious purposes, that 
        meets the requirements of this paragraph, not including 
        subparagraph (B)(i).''.
    (b) Supportive Housing for Persons With Disabilities.--Section 811 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8013) is amended--
            (1) in subsection (f), by inserting after and below 
        paragraph (7) the following:
``The selection criteria used by the Secretary shall specifically 
provide that religious organizations and organizations having religious 
purposes, that qualify under subsection (k)(6) as private nonprofit 
organizations may own projects assisted under this section.'';
            (2) in subsection (j), by adding at the end the following 
        new paragraph:
            ``(8) Eligibility of religious organizations as project 
        owners.--The Secretary may not prohibit religious organizations 
        or organizations having religious purposes that, under 
        subsection (k)(6) qualify as private nonprofit organizations, 
        from owning projects assisted under this section because of 
        their status as such religious organizations.''; and
            (3) in subsection (k)(6), by inserting after and below 
        subparagraph (D) the following:
        ``Such term includes a religious organization or an 
        organization having religious purposes, that meets the 
        requirements of this paragraph, not including subparagraph 
        (C).''.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

SEC. 401. THRIFTY PRODUCTION VOUCHERS.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
            ``(19) Thrifty production vouchers.--
                    ``(A) In general.--For the purpose of encouraging 
                the production of housing affordable to extremely low-
                income families, a public housing agency may use 
                amounts provided under an annual contributions contract 
                under this subsection to enter into a housing 
assistance payment contract for thrifty production voucher assistance 
that is attached to a structure and complies with the requirements 
under this paragraph.
                    ``(B) Project-based assistance.--A housing 
                assistance payment contract under this paragraph shall 
                be subject to the same limitations and requirements 
                that such a contract under paragraph (13) is subject to 
                under subparagraphs (A) through (K) of such paragraph, 
                except for subparagraphs (H) and (I) of such paragraph 
                and except as otherwise specified in this paragraph.
                    ``(C) Use for new production and substantial 
                rehabilitation only.--Assistance under this paragraph 
                may only be attached to a structure that is newly 
                constructed or a unit that is substantially 
                rehabilitated.
                    ``(D) Location.--Subject to other requirements 
                under applicable laws, a public housing agency may 
                attach assistance under this paragraph to--
                            ``(i) a structure located outside of a 
                        qualified census tract (as such term is defined 
                        in section 42(d) of the Internal Revenue Code 
                        of 1986 (26 U.S.C. 42(d))); or
                            ``(ii) a structure located in a qualified 
                        census tract (as such term is defined in such 
                        section 42(d)), but only if the agency 
                        determines that the contract is consistent with 
                        the goal of deconcentrating poverty and 
                        expanding housing and economic opportunities or 
                        revitalizing a low-income community, or will 
                        prevent the displacement of extremely low-
                        income families.
                    ``(E) Civil rights and fair housing requirements.--
                Regardless of location, if the dwelling units proposed 
                to be provided assistance under this paragraph are 
                assisted with a grant or loan under a Federal program 
                pursuant to which the Secretary (or a designee of the 
                Secretary) has determined, in accordance with the 
                regulations of the Secretary, that the site location 
                meets applicable civil rights and fair housing 
                requirements, the Secretary shall consider the 
                attachment of assistance under this paragraph to the 
                structure to comply with all applicable civil rights 
                and fair housing requirements.
                    ``(F) Income mixing.--Subparagraph (D) of paragraph 
                (13) shall apply to a property located outside of a 
                qualified census tract (as such term is defined in 
                section 42(d) of the Internal Revenue Code of 1986. If 
                a property is located in a qualified census tract (as 
                such term is defined in such section 42(d)), no more 
                than 25 percent of the dwelling units in the property 
                may be assisted under this paragraph unless all the 
                dwelling units so assisted are specifically made 
                available only for households comprised of elderly 
                families or disabled families or are in single family 
                properties.
                    ``(G) Contract term and extensions.--A housing 
                assistance payment contract pursuant to this paragraph 
                between a public housing agency and the owner of a 
                structure may have an initial term of up to 15 years, 
                and shall require the owner and any successors in 
                interest of the owner to accept any offered extension 
                for up to a total of 40 years, subject to the same 
                conditions specified in subparagraphs (F) and (G) of 
                paragraph (13) with respect to contracts under such 
                paragraph.
                    ``(H) Rent calculation.--
                            ``(i) In general.--In the case of a housing 
                        assistance payment contract pursuant to this 
                        paragraph for a property in which not more than 
                        25 percent of the dwelling units are assisted 
                        under this section, the contract shall 
                        establish the gross rent for each dwelling unit 
                        assisted in an amount equal to the sum of (I) 
                        the per unit operating cost for the property, 
                        and (II) any applicable utility allowances of 
                        the public housing agency for tenant-paid 
                        utilities.
                            ``(ii) Per unit operating cost.--For 
                        purposes of this subparagraph, the operating 
                        cost for a dwelling unit shall be the unit's 
                        allocable share of the ordinary and customary 
                        expenses incurred to operate the property, 
                        include applicable owner-paid utilities, 
                        contributions to replacement reserve, asset 
                        management fee, and a modest cash flow 
                        allowance equal to 15 percent of all other 
                        allocable operating costs. A public housing 
                        agency shall require an owner to demonstrate 
                        that the unit operating cost for units assisted 
                        under this paragraph does not exceed the 
                        operating cost of other units in the property 
                        of similar size that are not assisted under 
                        paragraph (13) and shall establish policies to 
                        ensure that expenses included in unit operating 
                        cost that are paid to the owner or a related 
                        entity are reasonable and consistent with 
                        prevailing costs in the community. The agency 
                        shall be responsible for determining whether an 
                        owner has sufficiently demonstrated such unit 
                        operating cost.
                            ``(iii) Annual adjustment.--The public 
                        housing agency shall annually make an 
                        appropriate adjustment in contract rents, based 
                        on documented changes in unit operating costs.
                            ``(iv) Limitations.--A public housing 
                        agency shall not approve a rent for a dwelling 
                        unit assisted under this paragraph that exceeds 
                        75 percent of the agency's payment standard for 
                        a dwelling unit of the same size or the 
                        applicable fair market rental, whichever is 
                        higher. The Secretary may approve a higher cap 
                        if the permitted maximum rent could not 
                        otherwise support the reasonable operating cost 
                        of rental housing.
                            ``(v) Other properties.--For properties in 
                        which 25 percent or more of the dwelling units 
                        are assisted under this paragraph, the rent 
                        shall be determined based on a formula to be 
                        established by the Secretary.
                    ``(I) Tenant selection.--The provisions of 
                subparagraph (J) of paragraph (13) applicable to 
                housing assisted under such paragraph shall apply to a 
                property assisted under this paragraph, except as 
                follows:
                            ``(i) Extremely low-income occupancy.--
                        Tenants must qualify as extremely low-income 
                        families at the time of commencement of 
                        occupancy of dwelling units assisted under this 
                        paragraph.
                            ``(ii) Separate pha waiting lists.--A 
                        public housing agency may maintain a separate 
                        waiting list for assistance under this 
                        paragraph (or for each property assisted under 
                        this paragraph, if the agency provides such 
                        assistance to more than one property) subject 
to the following:
                                    ``(I) An agency that provides 
                                notice of the opening of the waiting 
                                list in the same manner required by the 
                                Secretary for the provision of notice 
                                of the opening of the waiting list for 
                                tenant-based assistance under this 
                                subsection need not provide individual 
                                notice to families on the agency's 
                                tenant-based waiting list of the 
                                opportunity to be placed on the waiting 
                                list for a dwelling unit assisted under 
                                this paragraph. Among families applying 
                                at the equivalent time and date with 
                                otherwise equivalent preference under 
                                the public housing agency plan for the 
                                agency approved under section 5A, the 
                                agency shall give preference for 
                                occupancy in dwelling units assisted 
                                under this paragraph to families on its 
                                tenant-based waiting list.
                                    ``(II) Each agency shall notify 
                                extremely low-income families 
                                requesting to apply for tenant-based 
                                assistance of the opportunity to be 
                                listed on any separate waiting lists 
                                for dwelling units assisted under this 
                                paragraph.
                            ``(iii) Owner waiting lists.--
                                    ``(I) A public housing agency may, 
                                at the option of the agency, allow an 
                                owner of a property assisted under a 
                                contract under this paragraph to 
                                maintain the waiting list for such 
                                assisted units. The owner's waiting 
                                list shall be considered to be a 
                                waiting list maintained by the agency 
                                under this subsection for purposes of 
                                requirements applicable to the agency's 
                                waiting list.
                                    ``(II) Any family denied a dwelling 
                                unit by an owner that maintains the 
                                waiting list for units assisted under 
                                this paragraph shall have the same 
                                rights to informal review by the agency 
                                as a family denied tenant-based 
                                assistance by the agency. The agency 
                                shall perform such review expeditiously 
                                so as not to impede the timely rental 
                                of units. The owner's waiting list 
                                policy and any applicable preferences 
                                or selection criteria shall be included 
                                in the public housing agency plan for 
                                the agency approved under section 5A.
                                    ``(III) Each agency shall notify 
                                extremely low-income families 
                                requesting to apply for tenant-based 
                                assistance of the opportunity to be 
                                listed on the owner's waiting list, 
                                shall establish a mechanism to transmit 
                                applications submitted at its office to 
                                the owner for placement on the waiting 
                                list, and shall monitor at reasonable 
                                intervals the compliance by the owner 
                                with laws applicable to tenant 
                                selection and waiting lists, including 
                                civil rights laws and certifications 
                                required under such laws.
                                    ``(IV) The agency's contract with 
                                the owner shall require the owner to--
                                            ``(aa) provide notice of 
                                        the opening of the waiting list 
                                        and provide preference to 
                                        families on the agency's 
                                        tenant-based waiting list in 
                                        the same manner required of the 
                                        agency if the agency maintained 
                                        the waiting list (unless the 
                                        agency agrees to provide such 
                                        notice for the owner);
                                            ``(bb) place on its waiting 
                                        list families that apply at an 
                                        office of the agency that 
                                        accepts applications for 
                                        tenant-based assistance;
                                            ``(cc) cooperate with the 
                                        agency's requests for 
                                        information concerning the 
                                        waiting list and the owner's 
                                        tenant selection decisions; and
                                            ``(dd) submit to the agency 
                                        for approval written tenant 
                                        selection policies and criteria 
                                        and make the policies and 
                                        criteria available to the 
                                        public.
                    ``(J) Use of assistance in conjunction with public 
                housing capital funds.--Notwithstanding any other 
                provision of this Act, a public housing agency may 
                attach assistance under this paragraph to a unit that 
                receives amounts allocated to the agency under the 
                Capital Fund established by section 9(d) or under 
                section 24. Any such unit receiving assistance under 
                this paragraph shall not be eligible for assistance 
                under the Operating Fund established by section 9(e).
                    ``(K) Renewal of assistance.--The Secretary shall 
                increase the adjusted allocation baseline for renewal 
                of funding under subsection (d) for public housing 
                agencies that attach assistance to a structure under 
                this paragraph. The increase shall equal the number of 
                additional families that an agency can assist as a 
                result of the reduced payments permitted under this 
                paragraph.
                    ``(L) Allocation of incremental assistance for use 
                under this subparagraph.--
                            ``(i) Use of home investment partnerships 
                        program formula.--Incremental assistance 
                        appropriated for use under this paragraph shall 
                        be allocated in accordance with the formula 
                        established by the Secretary under section 
                        217(b) of the Cranston-Gonzalez National 
                        Affordable Housing Act (42 U.S.C. 12747), and 
                        shall not be subject to allocation under 
                        section 213(d) of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 1439).
                            ``(ii) Qualified public housing agencies.--
                        Subject to the allocation as provided in clause 
                        (i) and any additional criteria that the 
                        Secretary may establish, the Secretary shall 
                        award such incremental assistance only to 
                        public housing agencies that administer a 
                        program of tenant-based assistance under this 
                        subsection and that administer funds for the 
                        construction or substantial rehabilitation of 
                        rental housing other than public housing. A 
                        public housing agency may qualify to receive 
                        incremental assistance for use under this 
                        paragraph if the agency has an agreement with 
                        an agency that administers funds for the 
                        construction or substantial rehabilitation of 
                        rental housing that will enable a prospective 
                        developer of such housing to submit a single 
                        application for both types of funds.
                            ``(iii) Treatment of percentage 
                        limitation.--Incremental assistance restricted 
                        for use under this paragraph shall not be 
                        considered in determining an agency's 
                        compliance with the limitation in subparagraph 
                        (B) of paragraph (13).
                            ``(iv) Insufficient funds for formula 
                        allocation.--If the Secretary determines that 
                        the amounts appropriated for incremental 
                        assistance for use under this paragraph are not 
                        sufficient to allocate to each State or to each 
                        eligible jurisdiction in accordance with the 
                        formula referred to in clause (i), the 
                        Secretary may award such funds to qualified 
                        public housing agencies through a national 
                        competition.
                    ``(M) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Extremely low-income families.--The 
                        term `extremely low-income families' means 
                        families (as such term is defined in section 
                        3(b)) whose incomes do not exceed the higher 
                        of--
                                    ``(I) 30 percent of the area median 
                                income, as determined by the Secretary 
                                with adjustments for smaller and larger 
                                families and for unusually high or low 
                                family incomes; or
                                    ``(II) 30 percent of the national 
                                non-metropolitan median income.
                            ``(ii) Substantial rehabilitation.--The 
                        term `substantial rehabilitation' means 
                        rehabilitation expenditures paid or incurred 
                        with respect to a dwelling unit, including its 
                        prorated share of work on common areas or 
                        systems, of $25,000 or more. The Secretary 
                        shall increase the dollar amount under this 
                        clause annually to reflect inflation, and shall 
                        cause notice of any such increase to be 
                        published in the Federal Register.''.

SEC. 402. MONTHLY RENTAL AMOUNT.

    Section 8(o)(3) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(3)) is amended by striking ``monthly adjusted income of the 
family'' and inserting ``gross income of the family without reduction 
for exclusion or deductions''.

SEC. 403. FLEXIBILITY TO ASSIST HARD-TO-HOUSE FAMILIES.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
            ``(19) Flexibility to assist hard-to-house families.--In 
        any program year, a public housing agency that is not 
        designated as troubled pursuant to the section 8 management 
        assessment program, or under such other program as may be used 
        by the Secretary to evaluate performance of public housing 
        agencies in administering rental assistance under this section, 
        may use up to 5 percent of any amounts allocated to the agency 
        for such year for purposes that directly support the agency's 
        housing choice voucher program, including housing counseling, 
        downpayment assistance under subsection (y), rental security 
        deposits for families receiving voucher assistance, and other 
        activities that assist eligible families in gaining and 
        maintaining occupancy in suitable dwelling units.''.

SEC. 404. PROHIBITION ON RE-SCREENING OF TENANTS.

    Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) a family may not be required, as a condition 
                of receiving such assistance, to requalify under the 
                selection standards of a public housing agency.''.

SEC. 405. PHA ADMINISTRATIVE FEES.

    Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(q)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Performance incentive.--For fiscal year 2003 and 
        fiscal years thereafter, the Secretary may pay an additional 
        fee to any public housing agency that succeeds in achieving 
        high or substantially improved performance on specified program 
        requirements or program goals, as established under the 
        management assessment program for the rental assistance program 
        under this section, or any successor assessment program for 
        such assistance, or by regulation issued by the Secretary after 
        notice and opportunity for public comment pursuant to the 
        provisions of section 553 of title 5, United States Code 
        (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
        section). The Secretary shall establish limitations on the 
        total amount of any such additional fees paid to agencies for a 
        fiscal year and on the amount of any such fee paid to any 
        single agency for a fiscal year.''.

SEC. 406. ENSURING ABILITY TO USE ENHANCED VOUCHERS.

    (a) In General.--Section 8(t) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(t)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Right to use.--The owner of a multifamily housing 
        project for which an eligibility event (as such term is defined 
        in paragraph (2)) has occurred may not refuse--
                    ``(A) to lease, to a family who is residing in 
                project upon the occurrence of such eligibility event 
                and who is provided enhanced voucher assistance under 
                this subsection (including such assistance provided 
                under the authorities specified in paragraph (3)(B)), 
                any available dwelling unit in the project a proximate 
                cause of which is the status of such family as a 
                recipient of such assistance; or
                    ``(B) to enter into a housing assistance payments 
                contract for such a unit.''.
    (b) Treatment of Overhoused Assisted Families.--Paragraph (6) of 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(6)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Residency in inappropriately sized units.--
                            ``(i) In general.--If a public housing 
                        agency determines that a family assisted under 
                        this subsection is residing in a dwelling unit 
                        that, because of a reduction in family size 
                        after such assistance was initially provided 
                        for such family, has more bedrooms than is 
                        appropriate for a family of such size, the 
                        agency may not terminate the assistance for the 
                        family or require the family to move to another 
                        dwelling unit unless--
                                    ``(I) the agency provides the 
                                family with a dwelling unit that is 
                                located in the same building or project 
as the inappropriately sized dwelling unit and is available for 
occupancy; or
                                    ``(II) in the case of a family 
                                residing in a dwelling unit in a 
                                building or project that does not 
                                contain any available dwelling unit 
                                having a number of bedrooms that is 
                                appropriate for size of such family, 
                                the agency provides the family with a 
                                dwelling unit that is located within 
                                the same neighborhood as the building 
                                containing the inappropriately sized 
                                dwelling unit.
                            ``(ii) Determination of neighborhood.--For 
                        purposes of clause (i)(II), the term 
                        `neighborhood' means the immediate geographic 
                        area in which a building is located, which--
                                    ``(I) is characterized by all 
                                locations within the area having a 
                                similar proximity to major roadways, 
                                mass transit facilities, and other 
                                means of transportation, schools, child 
                                care facilities, workplace centers, and 
                                grocery stores and other retail and 
                                commercial facilities; and
                                    ``(II) shall be determined by the 
                                public housing agency involved, in 
                                consultation with the appropriate 
                                resident advisory board established 
                                pursuant to section 5A(e).
                            ``(iii) Treatment of students.--For 
                        purposes of clause (i), the absence of a child 
                        or adult from a dwelling because of temporary 
                        residence in another location for the purpose 
                        of attending school on a full- or part-time 
                        basis shall not be considered in determining 
                        family size.''.

SEC. 407. EXTENSION OF MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

    Section 557 of the Quality Housing and Work Responsibility Act of 
1998 (Public Law 105-276; 112 Stat. 2613) is amended--
            (1) in subsection (a), by striking ``1999, 2000, and 2001'' 
        and inserting ``2002, 2003, and 2004''; and
            (2) in subsection (c)--
                    (A) by striking ``Report'' and inserting 
                ``Reports'';
                    (B) by striking ``a report'' and inserting ``an 
                interim report'';
                    (C) by striking ``and evaluating'' and inserting 
                ``the implementation and operation of''; and
                    (D) by adding at the end the following new 
                sentence: ``Not later than March 31, 2005, the 
                Secretary shall submit a report to the Congress 
                describing and evaluating the demonstration program 
                under this section.''.

SEC. 408. EXTENSION OF PROJECT-BASED SECTION 8 CONTRACT RENEWALS.

    (a) Renewal of Expiring Project-Based Section 8 Contracts.--Section 
524 of the Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note) is amended--
            (1) in subsection (a)(4)(A)(iv)--
                    (A) in subclause (I), by inserting ``or'' after the 
                semicolon;
                    (B) by striking subclause (II); and
                    (C) by redesignating subclause (III) as subclause 
                (II); and
            (2) by striking paragraph (3) of subsection (b).
    (b) Adjustments for Covered Projects.--
            (1) Rent determination at initial renewal after 
        enactment.--Upon the first request for renewal of project-based 
        assistance pursuant to section 524 after the date of enactment 
        of this Act by an owner of a covered housing project--
                    (A) the rent levels at which assistance will be 
                provided pursuant to such renewal will be determined as 
                if such renewal were the initial renewal of a contract 
                for assistance under section 524, as amended by 
                subsection (a) of this section; and
                    (B) solely for purposes of determining the rent 
                levels at which assistance will be provided pursuant to 
                such first renewal after the date of enactment of this 
                Act, in the case of a project for which contract rents 
                were reduced on a prior renewal of an expiring contract 
                pursuant to subsection (b)(3) of section 524, as in 
                effect on the day before the date of enactment of this 
                Act, the contract rent levels in effect immediately 
                prior to such first renewal after the date of enactment 
                of this Act shall be considered to be the deemed rent 
                levels described in paragraph (3)(C).
            (2) Rent adjustments after initial renewal after 
        enactment.--After the first renewal of a contract for 
        assistance of a covered project after the date of enactment of 
        this Act in accordance with paragraph (1) of this subsection, 
        the Secretary shall adjust rents in accordance with section 
        524(c).
            (3) Definitions.--In this subsection--
                    (A) references to ``section 524'' or any 
                subdivision thereof are references to section 524 of 
                the Multifamily Assisted Housing Reform and 
                Affordability Act of 1997 (42 U.S.C. 1437f note);
                    (B) the term ``covered housing project'' means a 
                project that receives project-based assistance under 
                section 8 of the United States Housing Act of 1937 (42 
                U.S.C. 1437f) which was renewed prior to the date of 
                enactment of this Act pursuant to subsection (b)(3) of 
                section 524, as in effect on the day before the date of 
                enactment of this Act;
                    (C) the term ``deemed rent levels'' means the 
                contract rent levels in effect immediately prior to the 
                first renewal of assistance pursuant to subsection 
                (b)(3) of section 524, as in effect on the day before 
                the date of enactment of this Act, upon which contract 
rent levels were reduced, as adjusted by the applicable operating cost 
adjustment factor established by the Secretary at the date of such 
renewal and at the date of any subsequent renewal pursuant to 
subsection (b)(3) of section 524 occurring before the date of enactment 
of this Act; and
                    (D) the term ``Secretary'' means the Secretary of 
                Housing and Urban Development.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

SEC. 501. WAIVER OF RESIDENT COMMISSIONER REQUIREMENT.

    Section 2(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437(b)) is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Waiver.--If the Secretary determines that reasonable 
        efforts have been made (whether or not successful) or are being 
        made to take such legislative or regulatory action necessary to 
        provide for implementation of paragraph (1), the Secretary may 
        waive the applicability of such paragraph with respect to all 
        public housing agencies in such State until such action has 
        taken effect.''.

SEC. 502. PHA JOINT VENTURES.

    Section 13(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437k(b)) is amended by adding at the end the following new paragraph:
            ``(4) Non-federal funds and activities.--This subsection 
        shall not apply to any subsidiary, joint venture, partnership, 
        or business arrangement, or any activity conducted by such an 
        entity, that does not involve holding or expending funds 
        received from the Federal Government or proceeds or income 
        derived from such funds.''.

SEC. 503. THIRD-PARTY PUBLIC HOUSING ASSESSMENT SYSTEM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall provide for the development of a third-party assessment system 
for evaluating the performance of public housing agencies, in 
accordance with this section.
    (b) Purposes.--The assessment system developed under this section 
shall--
            (1) provide an objective assessment of the overall 
        performance of public housing agencies in all major areas of 
        management operations and in discharging their obligations 
        under the United States Housing Act of 1937;
            (2) identify quantifiable areas of the management and 
        financial condition of public housing agencies; and
            (3) determine the physical condition of public housing 
        dwelling units to ensure that they are maintained in accordance 
        with the requirements pursuant to the United States Housing Act 
        of 1937.
    (c) Testing and Prototype.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, to the extent amounts are made 
        available to carry out this section, the Secretary of Housing 
        and Urban Development shall enter into a contract with a public 
        entity or a private for-profit or nonprofit entity to develop a 
        system prototype for the third-party assessment system required 
        under this section and to test such prototype. Such contract 
        shall require such entity to submit the prototype assessment 
        system to the Congress not later than the expiration of the 6-
        month period beginning upon execution of the contract and to 
        complete such testing not later than the expiration of the 12-
        month period beginning upon execution of the contract.
            (2) Consultation.--In carrying out the testing and 
        prototype development under this subsection, the entity 
        selected under this subsection shall consult with individuals 
        and organizations experienced in managing public housing and 
        their representatives, private real estate managers, 
        representatives from State and local governments, residents of 
        public housing, and the Secretary.
    (d) Report.--Not later than the expiration of the 12-month period 
beginning upon execution of the contract referred to in subsection 
(c)(1), the Secretary of Housing and Urban Development shall submit to 
the Congress a report describing the results and recommendations 
regarding the testing of the prototype assessment system conducted 
pursuant to this subsection, which shall include any comments and 
recommendations of the persons and entities consulted with pursuant to 
subsection (c)(2) and any recommendations regarding the replacement of 
the public housing management assessment system established under 
section 6(j) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(j)).
    (e) Rule of Construction.--This section may not be construed to--
            (1) provide for or require the implementation of the third-
        party assessment system developed pursuant to this section; or
            (2) alter, affect, suspend, terminate, or delay the 
        effectiveness or applicability of the public housing assessment 
        system under section 6(j) of the United States Housing Act of 
        1937 (42 U.S.C. 1437d(j)) or any regulations issued, or to be 
        issued, pursuant to such section.

SEC. 504. PUBLIC HOUSING AGENCY PLANS FOR SMALL PUBLIC HOUSING 
              AGENCIES.

    (a) In General.--Section 5A(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437c-1(b)) is amended by adding at the end the 
following new paragraph:
            ``(3) Suspension of filing requirement for small phas.--
                    ``(A) In general.--Notwithstanding paragraph (1) or 
                any other provision of this Act--
                            ``(i) the requirement under paragraph (1) 
                        shall not apply to any small public housing 
                        agency for fiscal years 2003, 2004, or 2005; 
                        and
                            ``(ii) any reference in this section or any 
                        other provision of law to a `public housing 
                        agency' shall not be considered to refer to any 
                        small public housing agency for such fiscal 
                        years, to the extent such reference applies to 
                        the requirement to submit a public housing 
                        agency plan under subsection (b).
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `small public housing agency' means a public 
                housing agency that--
                            ``(i) administers 100 or fewer public 
                        housing dwelling units; and
                            ``(ii) is not designated pursuant to 
                        section 6(j)(2) as a troubled public housing 
                        agency.''.
    (b) Report.--Not later than September 30, 2004, the Comptroller 
General of the United States shall submit a report to the Congress 
describing and analyzing the administrative, financial, and other 
burdens to small public housing agencies (as such term is defined in 
section 5A(b)(3) of the United States Housing Act of 1937, as amended 
by subsection (a) of this section) of complying with the requirements 
under section 5A(b)(1) of such Act.

SEC. 505. DEVELOPMENT-BASED SUBSIDIES.

    (a) In General.--Section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g) is amended by adding at the end the following new 
subsection:
    ``(o) Development-Based Subsidies.--
            ``(1) In general.--In order to facilitate the financing of 
        capital needs and development-based financial management and 
        accountability, the Secretary may approve, on a project-by-
        project basis, the conversion of a public housing project or a 
        portion of a public housing project to project-based voucher 
        assistance, which assistance may be on-site or off-site: 
        Provided, That the number of public housing units converted 
        under this subsection shall be equal to the number of units 
        receiving project-based voucher assistance pursuant to this 
        subsection, and that a commitment has first been obtained from 
        an approved lender for a mortgage loan secured by the property 
        to finance qualified necessary capital improvements under terms 
        established by the Secretary.
            ``(2) Funding of vouchers.--The initial year of any 
        contract for project-based voucher assistance under this 
        subsection may be funded with amounts made available in an 
        appropriations Act under the headings making amounts available 
        for the purposes set forth in subsections (d) or (e) of this 
        section, or with any other amounts appropriated for this 
        purpose. Any renewal of such contracts shall be funded with 
        amounts made available under the heading making amounts 
        available for the renewal of assistance under section 8.
            ``(3) Program requirements.--Project-based voucher 
        assistance provided pursuant to this subsection shall be 
        administered under section 8(o)(13), except that--
                    ``(A) subparagraphs (C)(ii) and (D) of such section 
                shall not apply;
                    ``(B)(i) any units converted to project-based 
                voucher assistance under this subsection shall be 
                maintained as assisted housing and provided project-
                based voucher assistance for the same length of time as 
                the housing would have been required under subsection 
                (d)(3) of this section to be operated and maintained as 
                public housing absent such conversion, subject to the 
                availability of sufficient appropriated funds for the 
                purpose of renewing expiring contracts for assistance 
                payments, as provided in appropriations Acts;
                    ``(ii) notwithstanding clause (i), when dwelling 
                units which are receiving project-based voucher 
                assistance pursuant to a conversion under this 
                subsection and which are not located in developments or 
                portions of developments which house only elderly 
                persons or persons with disabilities, or both, become 
                vacant, the public housing agency may rent up to one-
                third of such units to unassisted families (except that 
                the Secretary may permit the agency under such special 
                local circumstances as are determined by the Secretary 
                to rent more than one-third of such units to unassisted 
                families), and for each unit so rented for the duration 
                of such rental may use the assistance otherwise 
                associated with that unit to provide tenant-based 
                voucher assistance under section 8; and
                    ``(iii)(I) notwithstanding clause (i), if the 
                Secretary determines that such action would further the 
                purposes of this subsection, the Secretary may provide 
                for termination of the restricted use period set forth 
                in clause (i) in the event that any units converted to 
                project-based voucher assistance under this subsection 
                are foreclosed upon (or otherwise disposed of pursuant 
                to an instrument in lieu of foreclosure), on the date 
                the units are acquired by foreclosure (or instrument in 
                lieu of foreclosure), unless--
                            ``(aa) the Secretary determines that the 
                        foreclosure is part of an arrangement the 
                        purpose of which is to terminate the restricted 
                        use period; or
                            ``(bb) a bona fide and reasonable contract 
                        acceptable to the Secretary to purchase such 
                        units is presented by a person who is willing 
                        to continue such use restrictions; and
                    ``(II) if the Secretary provides for termination of 
                the restricted use period pursuant to subclause (I), 
                the Secretary shall provide enhanced voucher assistance 
                under section 8(t) to any family occupying an assisted 
                unit at the time of such termination;
                    ``(C) any units converted to project-based voucher 
                assistance under this subsection shall remain covered 
                by and subject to the provisions in the public housing 
                cooperation agreement entered into between the city and 
                the public housing agency;
                    ``(D) any units converted to project-based voucher 
                assistance under this subsection shall not be included 
                as tenant-based assistance that is attached to a 
                structure for the purposes of the 20 percent limitation 
                set forth in section 8(o)(13)(B);
                    ``(E) the Secretary may set the rent level for a 
                unit converted to project-based voucher assistance 
                under this subsection at a level lower than the level 
                at which such rent would otherwise be set pursuant to 
                section 8(o)(13)(H), provided such lower level is 
                sufficient, in the determination of the Secretary, to 
                cover debt service payments on obligations to finance 
                the cost of any necessary rehabilitation, contributions 
                to a capital reserve, amounts necessary for adequate 
                debt service coverage, the cost of the subsequent 
                operation of the housing as project-based voucher 
                assistance, and any other necessary costs;
                    ``(F) where units converted to project-based 
                voucher assistance under this subsection are owned by 
                the public housing agency or an entity controlled by 
                such agency, the Secretary may administer or make 
                alternative arrangements to administer the obligations 
                otherwise required of the public housing agency under 
                the annual contributions contract; and
                    ``(G) the Secretary may waive or make alternative 
                arrangements regarding any other provision of law or 
                regulation that the Secretary finds to be inconsistent 
                with accomplishing the purposes of this subsection.
            ``(4) Treatment of conversion.--The conversion of a public 
        housing project to project-based voucher assistance under this 
        subsection shall not be considered a disposition under section 
        18 of this Act as long as the public housing agency or an 
        entity controlled by the agency retains ownership of the 
        project.
            ``(5) Loan loss reserve account.--
                    ``(A) Establishment.--The Secretary may establish a 
                common loan loss reserve account to which public 
                housing agencies converting public housing units to 
                project-based voucher assistance under this subsection 
                may contribute a percentage of amounts available for 
                such conversion, which percentage shall be specified by 
                the Secretary. The Secretary may establish the terms 
                and conditions applicable to this loan loss reserve 
account and any contributions to it, and may select an entity or 
entities on a competitive or noncompetitive basis to develop, maintain, 
and administer this account.
                    ``(B) Availability of amounts.--Amounts contributed 
                to the account established under this paragraph shall 
                be available without fiscal year limitation to 
                reimburse any mortgagor that provides financing to a 
                public housing agency for necessary renovations to any 
                project converted pursuant to this subsection if the 
                public housing agency defaults on the repayment of such 
                debt.''.
    (b) Use of Capital Fund Amounts for Conversion.--Section 9(d)(1) of 
the United States Housing Act of 1937 (42 U.S.C. 1437g(d)(1)) is 
amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J), by striking the period and 
        inserting ``; and''; and
            (3) by inserting at the end the following new subparagraph:
                    ``(K) assistance in the financing for necessary 
                renovations to, or other capital expenses for, any 
                project receiving project-based voucher assistance 
                pursuant to subsection (o) of this section, including 
                the making of upfront capital contributions to such 
                projects where needed to make financing feasible and 
                the purchase or provision of letters of credit or other 
                credit enhancements necessary to carry out such 
                subsection, contributions to a common loan loss reserve 
                account as established by subsection (o)(5) of this 
                section, and any contributions that the Secretary may 
                require for the initial administration of such 
                subsection (o) with respect to such project.''.

               Subtitle B--HOPE VI Revitalization Program

SEC. 521. SELECTION CRITERIA.

    Section 24(e)(2) of the United States Housing Act of 1937 (42 
U.S.C. 1437v(e)(2)) is amended--
            (1) in subparagraph (B), by striking ``large-scale 
        redevelopment or modernization efforts'' and inserting 
        ``redevelopment or modernization efforts that are large-scale 
        in relation to the size of the agency'';
            (2) in subparagraph (H), by striking ``and'' at the end;
            (3) by redesignating subparagraph (I) as subparagraph (J); 
        and
            (4) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) the representativeness of the awards with 
                regard to agency size and geographic location from year 
                to year; and''.

SEC. 522. AUTHORIZATION OF APPROPRIATIONS.

    Paragraph (1) of section 24(m) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(m)(1)) is amended to read as follows:
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this section 
        such sums as may be necessary for each of fiscal years 2003 and 
        2004.''.

SEC. 523. EXTENSION OF PROGRAM.

    Section 24(n) of the United States Housing Act of 1937 (42 U.S.C. 
1437v(n)) is amended by striking ``September 30, 2002'' and inserting 
``September 30, 2004''.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

SEC. 601. INTERAGENCY COUNCIL ON THE HOMELESS.

    Section 208 of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11318) is amended to read as follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

SEC. 602. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM.

    Section 322 of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

SEC. 603. EMERGENCY SHELTER GRANTS PROGRAM.

    Section 417 of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11377) is amended to read as follows:

``SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle such sums as may be necessary for each of fiscal years 2003 
and 2004.''.

SEC. 604. SUPPORTIVE HOUSING PROGRAM.

    (a) Authorization of Appropriations.--Subsection (a) of section 429 
of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11389(a)) is 
amended to read as follows:
    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle (not including activities 
funded pursuant to subsection (d) of this section) such sums as may be 
necessary for each of fiscal years 2003 and 2004.''.
    (b) Funding of Renewals Through Housing Certificate Fund.--Section 
429 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11389) is 
amended by adding at the end the following new subsection:
    ``(d) Funding of Renewals.--
            ``(1) In general.--For fiscal year 2003 and fiscal years 
        thereafter, assistance under this subtitle may be funded using 
        amounts appropriated for section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f).
            ``(2) Authorization of appropriations.--In addition to any 
        amounts otherwise made available for assistance under section 8 
        of the United States Housing Act of 1937 (42 U.S.C. 1437f), 
        there are authorized to be appropriated such sums as may be 
        necessary for each of fiscal years 2003 and 2004 for the 
        renewal of contracts for permanent housing activities under 
        this subtitle. Any such renewals shall be made only for a term 
        of one year.''.
    (c) Set-Aside.--Subtitle A of title IV of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended by adding 
at the end the following new section:

``SEC. 403. SET-ASIDE FOR PERMANENT HOUSING.

    ``Notwithstanding any other provision of this title, of the 
aggregate amount made available for assistance under this title for any 
fiscal year, not less than 30 percent shall be used only for permanent 
housing activities for homeless persons. Amounts made available under 
section 429(d) or 463(c) for renewals of contracts for permanent 
housing shall be disregarded for purposes of the preceding sentence.''.
    (d) Elimination of Cap on Capital Expenses.--Section 423(a) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11383(a)) is 
amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``, in an amount not to exceed 
                $200,000,''; and
                    (B) by striking ``; except that'' and all that 
                follows through ``rehabilitation costs''; and
            (2) in paragraph (2), by striking ``, in an amount not to 
        exceed $400,000,''.

SEC. 605. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

    Subsection (a) of section 441 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11401(a)) is amended to read as follows:
    ``(a) Increase in Budget Authority.--The budget authority available 
under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(e)(2) of such Act (as in effect pursuant to 
section 289(b)(2) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12839(b)(2)) is authorized to be increased by such sums 
as may be necessary on or after each of October 1, 2002, and October 1, 
2003.''.

SEC. 606. SHELTER PLUS CARE.

    (a) Authorization of Appropriations.--The first sentence of section 
463(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11403h(a)) is amended to read as follows: ``For purposes of the housing 
programs under this subtitle, there are authorized to be appropriated 
to carry out this subtitle (not including activities funded pursuant to 
subsection (c) of this section) such sums as may be necessary for each 
of fiscal years 2003 and 2004.''.
    (b) Funding of Renewals Through Housing Certificate Fund.--Section 
463 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11403h) is 
amended by adding at the end the following new subsection:
    ``(c) Funding of Renewals.--
            ``(1) In general.--For fiscal year 2003 and fiscal years 
        thereafter, assistance under this subtitle may be funded using 
        amounts appropriated for section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f).
            ``(2) Authorization of appropriations.--In addition to any 
        amounts otherwise made available for assistance under section 8 
        of the United States Housing Act of 1937 (42 U.S.C. 1437f), 
        there are authorized to be appropriated such sums as may be 
        necessary for each of fiscal years 2003 and 2004 for the 
        renewal of contracts under this subtitle. Any such renewals 
        shall be made only for a term of one year.''.
    (c) Conditions of Renewal.--Section 456 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11403e) is amended--
            (1) by inserting ``(a) Approval of Assistance.--'' before 
        ``The Secretary''; and
            (2) by adding at the end the following new subsection:
    ``(b) Conditions of Renewal.--The Secretary may not provide 
assistance under this subtitle for any housing previously assisted 
under this subtitle unless the unit of general local government in 
which such project is located certifies that the housing complies with 
such housing safety and quality standards, as the Secretary shall 
establish and the Secretary reviews and approves such certification.''.

SEC. 607. AMENDMENTS TO TABLE OF CONTENTS.

    The table of contents in section 101(b) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11301 note) is amended--
            (1) by striking the item relating to subtitle A of title IV 
        and inserting the following new item:

                  ``Subtitle A--General Provisions'';

            (2) by inserting after the item relating to section 401 the 
        following new items:

``Sec. 402. Discharge coordination policy.
``Sec. 403. Set-aside for permanent housing.
``Sec. 404. Management information systems.'';
        and
            (3) by striking the item relating to section 443 and 
        inserting the following new item:

``Sec. 443. Environmental review.''.

                   TITLE VII--NATIVE AMERICAN HOUSING

SEC. 701. REAUTHORIZATION OF NATIVE AMERICAN HOUSING AND SELF-
              DETERMINATION ACT OF 1996.

    (a) Block Grant Assistance.--Section 108 of the Native American 
Housing and Self-Determination Act of 1996 (25 U.S.C. 4117) is amended 
to read as follows:

``SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for grants under this 
title such sums as may be necessary for each of fiscal years 2003, 
2004, 2005, 2006, and 2007.''.
    (b) Guarantees for Tribal Housing Activities Loans.--
            (1) Aggregate fiscal year limitation.--Section 605(a) of 
        the Native American Housing and Self-Determination Act of 1996 
        (25 U.S.C. 4195(a)) is amended by striking ``1997, 1998, 1999, 
        2000, and 2001'' and inserting ``2003, 2004, 2005, 2006, and 
        2007.''.
            (2) Authorization of appropriations for credit subsidy.--
        Section 605(b) of the Native American Housing and Self-
        Determination Act of 1996 (25 U.S.C. 4195(b)) is amended by 
        striking ``1997, 1998, 1999, 2000, and 2001'' and inserting 
        ``2003, 2004, 2005, 2006, and 2007.''.
    (c) Training and Technical Assistance.--Section 703 of the Native 
American Housing and Self-Determination Act of 1996 (25 U.S.C. 4212) is 
amended by striking ``1997, 1998, 1999, 2000, and 2001'' and inserting 
``2003, 2004, 2005, 2006, and 2007.''.

                  TITLE VIII--HOUSING IMPACT ANALYSIS

SEC. 801. APPLICABILITY.

    Except as provided in section 802, the requirements of this title 
shall apply with respect to--
            (1) any proposed rule, unless the agency promulgating the 
        rule--
                    (A) has certified that the proposed rule will not, 
                if given force or effect as a final rule, have a 
                significant deleterious impact on housing 
                affordability; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                general notice of proposed rulemaking for the rule, 
                together with a statement providing the factual basis 
                for the certification; and
            (2) any final rule, unless the agency promulgating the 
        rule--
                    (A) has certified that the rule will not, if given 
                force or effect, have a significant deleterious impact 
                on housing affordability; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                the final rule, together with a statement providing the 
                factual basis for the certification.
Any agency making a certification under this section shall provide a 
copy of such certification and the statement providing the factual 
basis for the certification to the Secretary of Housing and Urban 
Development.

SEC. 802. EXCEPTION FOR CERTAIN BANKING RULES.

    The requirements of this title shall not apply to any proposed or 
final rule relating to--
            (1) the operations, safety, or soundness of--
                    (A) federally insured depository institutions or 
                any affiliate of such an institution (as such term is 
                defined in section 2(k) of the Bank Holding Company Act 
                of 1956 (12 U.S.C. 1841(k));
                    (B) credit unions;
                    (C) the Federal home loan banks;
                    (D) the enterprises (as such term is defined in 
                section 1303 of the Housing and Community Development 
                Act of 1992 (12 U.S.C. 4502);
                    (E) a Farm Credit System institution; or
                    (F) foreign banks or their branches, agencies, 
                commercial lending companies, or representative offices 
                that operate in the United States, or any affiliate of 
                a foreign bank (as such terms are defined in section 1 
                of the International Banking Act of 1978 (12 U.S.C. 
                3101); or
            (2) the payments system or the protection of deposit 
        insurance funds or the Farm Credit Insurance Fund.

SEC. 803. STATEMENT OF PROPOSED RULEMAKING.

    Whenever an agency publishes general notice of proposed rulemaking 
for any proposed rule, unless the agency has made a certification under 
section 801, the agency shall--
            (1) in the notice of proposed rulemaking--
                    (A) state with particularity the text of the 
                proposed rule; and
                    (B) request any interested persons to submit to the 
                agency any written analyses, data, views, and 
                arguments, and any specific alternatives to the 
                proposed rule;
            (2) provide an opportunity for interested persons to take 
        the actions specified under paragraph (1)(B) before 
        promulgation of the final rule; and
            (3) prepare and make available for public comment an 
        initial housing impact analysis in accordance with the 
        requirements of section 804.

SEC. 804. INITIAL HOUSING IMPACT ANALYSIS.

    (a) Requirements.--Each initial housing impact analysis shall 
describe the impact of the proposed rule on housing affordability. The 
initial housing impact analysis or a summary shall be published in the 
Federal Register at the same time as, and together with, the 
publication of general notice of proposed rulemaking for the rule. The 
agency shall transmit a copy of the initial housing impact analysis to 
the Secretary of Housing and Urban Development.
    (b) Contents.--Each initial housing impact analysis required under 
this section shall contain--
            (1) a description of the reasons why action by the agency 
        is being considered;
            (2) a succinct statement of the objectives of, and legal 
        basis for, the proposed rule;
            (3) a description of and, where feasible, an estimate of 
        the extent to which the proposed rule would increase the cost 
        or reduce the supply of housing or land for residential 
        development; and
            (4) an identification, to the extent practicable, of all 
        relevant Federal rules which may duplicate, overlap, or 
        conflict with the proposed rule.

SEC. 805. FINAL HOUSING IMPACT ANALYSIS.

    (a) Requirement.--Whenever an agency promulgates a final rule after 
publication of a general notice of proposed rulemaking, unless the 
agency has made the certification under section 801, the agency shall 
prepare a final housing impact analysis.
    (b) Contents.--Each final housing impact analysis shall contain--
            (1) a succinct statement of the need for, and objectives 
        of, the rule;
            (2) a summary of the significant issues, analyses, and 
        alternatives to the proposed rule raised during the public 
        comment period in response to the proposed rule and initial 
        housing impact analysis, a summary of the assessment of the 
        agency of such issues, analyses, and alternatives, and a 
        statement of any changes made in the proposed rule as a result 
        of such comments; and
            (3) a description of and an estimate of the extent to which 
        the rule will impact housing affordability or an explanation of 
        why no such estimate is available.
    (c) Availability.--The agency shall make copies of the final 
housing impact analysis available to members of the public and shall 
publish in the Federal Register such analysis or a summary thereof.

SEC. 806. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY ANALYSES.

    (a) Duplication.--Any Federal agency may perform the analyses 
required by sections 804 and 805 in conjunction with or as a part of 
any other agenda or analysis required by any other law, executive 
order, directive, or rule if such other analysis satisfies the 
provisions of such sections.
    (b) Joinder.--In order to avoid duplicative action, an agency may 
consider a series of closely related rules as one rule for the purposes 
of sections 804 and 805.

SEC. 807. PREPARATION OF ANALYSES.

    In complying with the provisions of sections 804 and 805, an agency 
may provide either a quantifiable or numerical description of the 
effects of a proposed rule or alternatives to the proposed rule, or 
more general descriptive statements if quantification is not 
practicable or reliable.

SEC. 808. EFFECT ON OTHER LAW.

    The requirements of sections 804 and 805 do not alter in any manner 
standards otherwise applicable by law to agency action.

SEC. 809. PROCEDURE FOR WAIVER OR DELAY OF COMPLETION.

    (a) Initial Housing Impact Analysis.--An agency head may waive or 
delay the completion of some or all of the requirements of section 804 
by publishing in the Federal Register, not later than the date of 
publication of the final rule, a written finding, with reasons 
therefor, that the final rule is being promulgated in response to an 
emergency that makes compliance or timely compliance with the 
provisions of section 801 impracticable.
    (b) Final Housing Impact Analysis.--An agency head may not waive 
the requirements of section 805. An agency head may delay the 
completion of the requirements of section 805 for a period of not more 
than 180 days after the date of publication in the Federal Register of 
a final rule by publishing in the Federal Register, not later than such 
date of publication, a written finding, with reasons therefor, that the 
final rule is being promulgated in response to an emergency that makes 
timely compliance with the provisions of section 805 impracticable. If 
the agency has not prepared a final housing impact analysis pursuant to 
section 805 within 180 days from the date of publication of the final 
rule, such rule shall lapse and have no force or effect. Such rule 
shall not be repromulgated until a final housing impact analysis has 
been completed by the agency.

SEC. 810. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Agency.--The term ``agency'' means each authority of 
        the Government of the United States, whether or not it is 
        within or subject to review by another agency, but does not 
        include--
                    (A) the Congress;
                    (B) the courts of the United States;
                    (C) the governments of the territories or 
                possessions of the United States;
                    (D) the government of the District of Columbia;
                    (E) agencies composed of representatives of the 
                parties or of representatives of organizations of the 
                parties to the disputes determined by them;
                    (F) courts-martial and military commissions;
                    (G) military authority exercised in the field in 
                time of war or in occupied territory; or
                    (H) functions conferred by--
                            (i) sections 1738, 1739, 1743, and 1744 of 
                        title 12, United States Code;
                            (ii) chapter 2 of title 41, United States 
                        Code;
                            (iii) subchapter II of chapter 471 of title 
                        49, United States Code; or
                            (iv) sections 1884, 1891-1902, and former 
                        section 1641(b)(2), of title 50, appendix, 
                        United States Code.
            (2) Families.--The term ``families'' has the meaning given 
        such term in section 3 of the United States Housing Act of 
        1937.
            (3) Housing affordability.--The term ``housing 
        affordability'' means the quantity of housing that is 
        affordable to families having incomes that do not exceed 150 
        percent of the median income of families in the area in which 
        the housing is located, with adjustments for smaller and larger 
        families. For purposes of this paragraph, area, median family 
        income for an area, and adjustments for family size shall be 
        determined in the same manner as such factors are determined 
        for purposes of section 3(b)(2) of the United States Housing 
        Act of 1937.
            (4) Rule.--The term ``rule'' means any rule for which the 
        agency publishes a general notice of proposed rulemaking 
        pursuant to section 553(b) of title 5, United States Code, or 
        any other law, including any rule of general applicability 
        governing grants by an agency to State and local governments 
        for which the agency provides an opportunity for notice and 
        public comment; except that such term does not include a rule 
        of particular applicability relating to rates, wages, corporate 
        or financial structures or reorganizations thereof, prices, 
        facilities, appliances, services, or allowances therefor or to 
        valuations, costs or accounting, or practices relating to such 
        rates, wages, structures, prices, appliances, services, or 
        allowances.
            (5) Significant.--The term ``significant'' means increasing 
        consumers' cost of housing by more than $100,000,000 per year.

SEC. 811. DEVELOPMENT.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall develop model 
initial and final housing impact analyses under this title and shall 
cause such model analyses to be published in the Federal Register. The 
model analyses shall define the primary elements of a housing impact 
analysis to instruct other agencies on how to carry out and develop the 
analyses required under sections 804 and 805

SEC. 812. JUDICIAL REVIEW.

    (a) Determination by Agency.--Except as otherwise provided in 
subsection (b), any determination by an agency concerning the 
applicability of any of the provisions of this title to any action of 
the agency shall not be subject to judicial review.
    (b) Other Actions by Agency.--Any housing impact analysis prepared 
under section 804 or 805 and the compliance or noncompliance of the 
agency with the provisions of this title shall not be subject to 
judicial review. When an action for judicial review of a rule is 
instituted, any housing impact analysis for such rule shall constitute 
part of the whole record of agency action in connection with the 
review.
    (c) Exception.--Nothing in this section bars judicial review of any 
other impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.

                    TITLE IX--OTHER HOUSING PROGRAMS

SEC. 901. GNMA GUARANTEE FEE.

    Section 972 of the Higher Education Amendments of 1998 (Public Law 
105-244; 112 Stat. 1837) is hereby repealed.

SEC. 902. HOUSING COUNSELING PROGRAMS.

    (a) Designation of Office Responsible for Housing Counseling 
Functions.--Section 4 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding at the end the 
following new subsection:
    ``(g)(1) The Secretary shall designate a single office of the 
Department in existence on the date of the enactment of the Housing 
Affordability for America Act of 2002 to establish, coordinate, and 
administrate all requirements, standards, and performance measures 
under programs and laws administered by the Department that relate to 
housing counseling, homeownership counseling, mortgage-related 
counseling, and rental housing counseling, including the requirements, 
standards, and performance measures relating to housing counseling 
pursuant to the provisions of law specified in paragraph (2). To the 
extent that the Secretary is authorized by law to provide housing 
counseling services, the Secretary, in such circumstances or under such 
programs as the Secretary considers appropriate, may authorize such 
office to provide such housing counseling services.
    ``(2) The provisions specified in this paragraph are as follows:
            ``(A) Section 105(a)(20) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 42 5305(a)(20)).
            ``(B) In the United States Housing Act of 1937--
                    ``(i) section 9(e) (42 U.S.C. 1437g(e));
                    ``(ii) section 8(y)(1)(D) (42 U.S.C. 
                1437f(y)(1)(D));
                    ``(iii) section 18(a)(4)(D) (42 U.S.C. 
                1437p(a)(4)(D));
                    ``(iv) section 23(c)(4) (42 U.S.C. 1437u(c)(4));
                    ``(v) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));
                    ``(vi) section 33(d)(2)(B) (42 U.S.C. 1437z-
                5(d)(2)(B));
                    ``(vii) sections 302(b)(6) and 303(b)(7) (42 U.S.C. 
                1437aaa-1(b)(6), 1437aaa-2(b)(7)); and
                    ``(viii) section 304(c)(4) (42 U.S.C. 1437aaa-
                3(c)(4)).
            ``(C) Section 302(a)(4) of the American Homeownership and 
        Economic Opportunity Act of 2000 (42 U.S.C. 1437f note).
            ``(D) Sections 233(b)(2) and 258(b) of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 
        12773(b)(2), 12808(b)).
            ``(E) Sections 101(e) and 106 of the Housing and Urban 
        Development Act of 1968 (12 U.S.C. 1701w(e), 1701x).
            ``(F) Section 220(d)(2)(G) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 
        4110(d)(2)(G)).
            ``(G) Sections 422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), 
        and 443(b)(6) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), 
        12892(b)(6), and 12893(b)(6)).
            ``(H) Section 491(b)(1)(F)(iii) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii)).
            ``(I) Sections 202(3) and 810(b)(2)(A) of the Native 
        American Housing and Self-Determination Act of 1996 (25 U.S.C. 
        4132(3), 4229(b)(2)(A)).
            ``(J) In the National Housing Act--
                    ``(i) in section 203 (12 U.S.C. 1709), the 
                penultimate undesignated paragraph of paragraph (2) of 
                subsection (b), subsection (c)(2)(A), and subsection 
                (r)(4);
                    ``(ii) subsections (a) and (c)(3) of section 237 
                (12 U.S.C. 1715z-2); and
                    ``(iii) subsections (d)(2)(B) and (m)(1) of section 
                255 (12 U.S.C. 1715z-20).
            ``(K) Section 502(h)(4)(B) of the Housing Act of 1949 (42 
        U.S.C. 1472(h)(4)(B)).
            ``(L) Section 508 of the Housing and Urban Development Act 
        of 1970 (12 U.S.C. 1701z-7).''.
    (b) Report.--Not later than September 30, 2003, the Secretary of 
Housing and Urban Development shall submit a report to the Congress 
that--
            (1) identifies the programs administered by the Department 
        of Housing and Urban Development under which housing counseling 
        is required, assisted, or made available;
            (2) describes the counseling offered or provided under each 
        such program, including the provider of such counseling; and
            (3) specifies any amounts made available under law for 
        technical assistance or similar functions which are used to 
        provide housing counseling.

SEC. 903. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

    (a) Limitation on Eligible Expenses.--Section 11(d) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by adding at the end the following new paragraph:
            ``(3) Limitation on eligible expenses.--The amount from 
        grants under this section that is used for eligible expenses 
        (as such term is defined under paragraph (2)) in connection 
        with developing dwelling units described in paragraph (1) may 
        not exceed an average of $15,000 per dwelling unit developed by 
        the grantee organization or consortium, except that the 
        Secretary may increase such $15,000 amount for any particular 
        geographic region that the Secretary determines has elevated 
        costs of land acquisition or infrastructure improvement.''.
    (b) Extension of Period for Use of Grants.--Section 11 of the 
Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
note) is amended--
            (1) in subsection (i)(5), by inserting before the semicolon 
        the following: ``, and except that the Secretary may extend 
        such period for any organization or consortia to not more than 
        48 months in any case in which the Secretary determines, in the 
        sole discretion of the Secretary, that extraordinary 
        circumstances (including a national emergency) warrant such 
        extension''; and
            (2) in subsection (j), by adding at the end the following: 
        ``The Secretary may extend the period otherwise applicable 
        under this subsection for any organization or consortia to not 
        more than 48 months in any case in which the Secretary 
        determines, in the sole discretion of the Secretary, that 
        extraordinary circumstances (including a national emergency) 
        warrant such extension.''.
    (c) Authorization of Appropriations.--Section 11(p) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by striking ``fiscal year 2001'' and inserting ``each of fiscal 
years 2003, 2004, 2005, 2006, and 2007''.

SEC. 904. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    Section 863 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12912) is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for grants under sections 
860 and 861 such sums as may be necessary for each of fiscal years 
2003, 2004, 2005, 2006, and 2007.''.

SEC. 905. CDBG FUNDING ELIGIBILITY FOR SECULAR ACTIVITIES CARRIED OUT 
              BY RELIGIOUS ORGANIZATIONS.

    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:
    ``(i) Eligible Subrecipients.--Grant amounts under this title may 
be provided to religious organizations, or organizations having 
religious purposes, for carrying out secular activities that are 
eligible under this section to be assisted under this title.''.

SEC. 906. USE OF CDBG AMOUNTS FOR CONSTRUCTION OF TORNADO-SAFE SHELTER 
              FOR MANUFACTURED HOUSING PARKS.

    (a) In General.--Section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (22), by striking ``and'' at the end;
            (2) in paragraph (23), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (23) the following new 
        paragraph:
            ``(24) the construction or improvement of tornado- or 
        storm-safe shelters for manufactured housing parks and 
        residents of other manufactured housing, the acquisition of 
        real property for sites for such shelters, and the provision of 
        assistance (including loans and grants) to nonprofit or for-
        profit entities (including owners of such parks) for such 
        construction, improvement, or acquisition, except that a 
        shelter assisted with amounts made available pursuant to this 
        paragraph shall be located in a neighborhood consisting 
        predominantly of persons of low and moderate income, except 
        that a shelter assisted with amounts made available pursuant to 
        this paragraph may not be made available exclusively for use of 
        the residents of a particular manufactured housing park or of 
        other manufactured housing, but shall generally serve the 
        residents of the area in which it is located; and''.
    (b) Authorization of Appropriations.--In addition to any amounts 
otherwise made available for grants under title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5301 et seq.), there are 
authorized to be appropriated such sums as may be necessary for fiscal 
year 2002 for assistance only for activities pursuant to section 
105(a)(24) of such Act.

SEC. 907. USE OF CDBG AMOUNTS TO ADMINISTER RENEWAL COMMUNITIES.

    Section 105(a)(13) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(13)) is amended by inserting ``and renewal 
communities'' after ``enterprise zones''.

SEC. 908. SUBSIDY LAYERING REVIEW.

    Section 911 of the Housing and Community Development Act of 1992 
(42 U.S.C. 3545 note) is amended
            (1) in subsection (a)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``, submitted in accordance with'' 
                and all that follows through the end of the subsection 
                and inserting the following: ``that it has made the 
                determination required by subsection (m)(2)(A) of such 
                section 42 upon the first occasion that such 
                determination was required and that it will make such 
                determination upon such additional occasions as are 
                required by law or regulation.'';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsection (d) as subsection (b).
                                 <all>