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

                                                 Union Calendar No. 404
107th CONGRESS
  2d Session
                                H. R. 3995

                  [Report No. 107-640, Parts I and II]

  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

                           September 4, 2002

              Reported from the Committee on the Judiciary

                           September 17, 2002

Additional sponsors: Mr. Peterson of Minnesota, Mr. Simmons, Mr. Shows, 
    Mr. Green of Texas, Mr. Boehlert, Mr. Kennedy of Minnesota, Mr. 
 Whitfield, Mrs. Johnson of Connecticut, Mr. Upton, Ms. Pryce of Ohio, 
 Mr. Young of Alaska, Mr. Pallone, Mr. Saxton, Mr. Sununu, Mr. Burr of 
  North Carolina, Mr. Hoeffel, Mr. Ose, Mrs. Myrick, Mr. Gillmor, Mr. 
 Holden, Mr. Ramstad, Mr. Graham, Mr. Johnson of Illinois, Mr. Terry, 
Mr. Ganske, Mrs. Biggert, Mr. Smith of Texas, Mr. Wamp, Mr. LaHood, Mr. 
Rothman, Mr. Gordon, Mr. Owens, Mr. Dooley of California, Mr. Baldacci, 
  Mr. Payne, Mr. Spratt, Mrs. Capito, Mr. Greenwood, Mr. Castle, Mr. 
Schaffer, Mr. Bass, Mr. LoBiondo, Mr. Petri, Mrs. Morella, Mr. English, 
Mr. Wolf, Mr. Nussle, Mr. Larsen of Washington, Mr. Doyle, Mr. Osborne, 
   Mr. Goodlatte, Mr. Berry, Mr. Honda, Mr. Platts, and Mr. McIntyre

                           September 17, 2002

 Reported from the Committee on Financial Services with an amendment; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               19, 2002]

_______________________________________________________________________

                                 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. Matching grants for State and local affordable housing trust 
                            funds.
Sec. 102. 3-year on-site inspection cycle for tax credit projects.
Sec. 103. Repeal of limitations on program assistance as percentage of 
                            operating budget.
Sec. 104. Eligibility of room additions for use for grandparents and 
                            grandchildren.
Sec. 105. Program year for matching contributions.
Sec. 106. Membership of boards of eligible community housing 
                            development organizations.
Sec. 107. Monitoring of compliance.
Sec. 108. Downpayment assistance initiative.
Sec. 109. Homeownership for municipal employees.

                    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. Standards and need for health care facility mortgage 
                            insurance.
Sec. 204. Hospital mortgage insurance loss mitigation demonstration 
                            program.

                   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 at-risk areas.
Sec. 225. Hybrid adjustable rate mortgages.
Sec. 226. Uniform national loan limit for home equity conversion 
                            mortgages.
Sec. 227. Prohibition of investor and nonprofit owners under 
                            rehabilitation loan program.
Sec. 228. Rehabilitation loan advances.
Sec. 229. Nonprofit purchasers under property disposition.
Sec. 230. Extension of holding period.
Sec. 231. Pilot program for mandatory first-time homebuyer counseling 
                            for properties in high foreclosure 
                            neighborhoods.
Sec. 232. Disposition of assets in revitalization areas.

    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

Sec. 301. Authorization of appropriations for grants for repairs to 
                            federally assisted housing for the elderly.
Sec. 302. Service coordinators for supportive housing for persons with 
                            disabilities.
Sec. 303. Demonstration program for elderly housing for 
                            intergenerational families.
Sec. 304. Treatment of projects subject to foreclosure.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

Sec. 401. Housing voucher demonstration.
Sec. 402. Flexibility to assist hard-to-house families.
Sec. 403. Clarification on prohibition of re-screening of tenants.
Sec. 404. PHA administrative fees.
Sec. 405. Ensuring ability to use enhanced vouchers.
Sec. 406. Treatment of overhoused assisted families.
Sec. 407. Extension of manufactured housing demonstration program.
Sec. 408. Extension of project-based section 8 contract renewals.
Sec. 409. Inspection of units.
Sec. 410. Escrow of tenant rent in cases of owner failure to maintain 
                            unit.
Sec. 411. Project-based vouchers modifications.
Sec. 412. Expanded use of enhanced vouchers.
Sec. 413. Demonstration program for rental assistance for grandparent-
                            headed or relative-headed families.
Sec. 414. Eligibility of grandparent-headed and relative-headed 
                            families for family unification assistance.
Sec. 415. Increased payment standard.
Sec. 416. Protection of innocent tenants.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

Sec. 501. PHA joint ventures.
Sec. 502. Third-party public housing assessment system.
Sec. 503. Public housing agency plans for certain small public housing 
                            agencies.
Sec. 504. Affordable assisted living facilities demonstration program.
Sec. 505. Protection of innocent tenants.

               Subtitle B--HOPE VI Revitalization Program

Sec. 521. Selection criteria.
Sec. 522. Authorization of appropriations.
Sec. 523. Extension of program.
Sec. 524. HOPE VI grants for assisting affordable housing through Main 
                            Street projects.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

Sec. 601. United States Interagency Council on Homelessness.
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. Housing for domestic violence and sexual assault victims.
Sec. 608. National goal of ending homelessness.
Sec. 609. Clerical amendments.

                   TITLE VII--NATIVE AMERICAN HOUSING

Sec. 701. Reauthorization of Native American Housing and Self-
                            Determination Act of 1996.
Sec. 702. Comprehensive planning under Native American housing block 
                            grant program.
Sec. 703. Lands Title Report Commission.

                  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. Use of CDBG amounts for construction of tornado-safe shelter 
                            for manufactured housing parks.
Sec. 906. Use of CDBG amounts to administer renewal communities.
Sec. 907. Subsidy layering review.
Sec. 908. Study of community renewal program.
Sec. 909. Correction of inequities in the second round of empowerment 
                            zones.
Sec. 910. Employment opportunities in public and Indian housing 
                            agencies.
Sec. 911. Assistance for nonprofit purchasers preserving affordable 
                            housing.
Sec. 912. Homeownership for municipal employees.
Sec. 913. Sense of Congress regarding HUD Office of Disability Policy.
Sec. 914. Transfer of rural multifamily rental housing projects to 
                            nonprofits and local housing authorities.
Sec. 915. Sense of Congress regarding consumer protection and home 
                            warranties.
Sec. 916. Demonstration program for affordable housing database.
Sec. 917. HUD study regarding Main Street partnership.
Sec. 918. Contractual commitments for rural multifamily rental housing.

             TITLE I--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 101. MATCHING GRANTS FOR STATE AND LOCAL AFFORDABLE HOUSING TRUST 
              FUNDS.

    (a) In General.--Title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding 
at the end the following new subtitle:

 ``Subtitle G--Matching Grants for State and Local Affordable Housing 
                              Trust Funds

``SEC. 292. MATCHING GRANT PROGRAM.

    ``(a) Findings.--The Congress finds the following:
            ``(1) There are more than 280 housing trust funds in the 
        United States. 36 States have created housing trust funds and 
        the remainder were created by cities and counties.
            ``(2) More than $500,000,000 is spent for affordable 
        housing through these trust funds every year and this amount is 
        increasing. On average, for every dollar committed to a housing 
        project by a housing trust fund, another $5 to $10 is leveraged 
        in other public and private resources.
            ``(3) Hundreds of thousands of housing units have been 
        supported through housing trust funds.
            ``(4) Housing trust funds support a variety of housing 
        activities for low- and very low-income households, including 
        new construction, preservation of existing housing, emergency 
        repairs, homeless shelters, housing-related services, and 
        capacity building for nonprofit organizations.
            ``(5) At any given time, as many as 50 additional 
        jurisdictions are considering the creation of a housing trust 
        fund.
            ``(6) These unique funds are a fundamental aspect of 
        emerging housing policy in the United States.
            ``(7) Housing trust funds have demonstrated that when 
        government makes a commitment to address critical housing 
        needs, the on-going dedicated source of revenue allows for more 
        intelligent planning to address housing needs and for improved 
        proposals submitted by the housing industry in an effort to 
        effectively use existing resources.
            ``(8) Housing trust funds enable jurisdictions to elevate 
        funding for their critical housing needs by committing 
        resources to a process that treats affordable housing as an 
        essential component of maintaining healthy communities.
            ``(9) Jurisdictions have documented increased jobs, growing 
        sales taxes, higher property tax revenues, and many other 
        economic benefits from the operation of their housing trust 
        funds.
            ``(10) Providing federal incentives to encourage the 
        establishment of more State and local housing trust funds, and 
        providing Federal funds for the more than 280 existing housing 
        trust funds, would be a positive action in addressing the 
        affordable housing crisis.
    ``(b) In General.--The Secretary of Housing and Urban Development 
may make grants under this section to affordable housing trust funds 
that are distinct funds, established by States and units of general 
local government, that use public revenue to support the production, 
preservation, and rehabilitation of affordable housing, as determined 
by the Secretary.
    ``(c) Allocations for States and Units of General Local 
Government.--The Secretary shall use the total amount made available 
for grants under this section for each fiscal year to provide such 
grants to affordable housing trust funds of States and units of general 
local government. Of such total amount, the Secretary shall allocate 40 
percent for grants for affordable housing trust funds of States and 60 
percent for grants for affordable housing trust funds of units of 
general local government. Each State affordable housing trust fund 
shall receive at least 1 percent of the amount allocated for the 
States.
    ``(d) Matching Requirement.--The Secretary may not make a grant 
under this section for any fiscal year to any affordable housing trust 
fund in an amount in excess of the amount that the State or local 
government administering the trust fund certifies, as the Secretary 
shall require, that will be contributed from non-Federal sources during 
such fiscal year to the trust fund for use only for production, 
preservation, and rehabilitation of affordable housing.
    ``(e) Use Requirements.--Amounts provided from a grant under this 
section shall be subject to the following requirements:
            ``(1) Distribution to eligible entities.--Grant amounts 
        under this section (excluding any amounts used under paragraph 
        (2)) shall be distributed to eligible entities for use by such 
        entities only for eligible activities in the jurisdiction 
        served by the affordable housing trust fund, as follows:
                    ``(A) Use for rental housing for extremely low-
                income families.--75 percent of such amounts shall be 
                distributed for use only for eligible activities 
                relating to qualified affordable housing that is 
                available for rental by extremely low-income families 
                in the jurisdiction served by the affordable housing 
                trust fund. Such rental housing shall include limited 
                equity cooperative housing, as such term is defined in 
                section 143(k) of the Internal Revenue Code of 1986 (26 
                U.S.C 143(k)).
                    ``(B) Use for rental housing or homeownership for 
                low-income families.--25 percent of such amounts shall 
                be distributed for use only for eligible activities 
                relating to qualified affordable housing that is 
                available for rental by low-income families in the 
                jurisdiction served by the affordable housing trust 
                fund, or for homeownership assistance for low-income 
                families in such jurisdiction. Such rental housing and 
                homes for homeownership shall include housing of a 
                cooperative housing corporation, as such term as 
                defined in section 216(b) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 216(b)).
            ``(2) Operating assistance for nonprofit housing 
        development organizations.--An affordable housing trust fund 
        that receives a grant under this section may use not more than 
5 percent of such grant amounts to provide assistance to nonprofit 
organizations involved in the development, rehabilitation, or 
preservation of affordable rental housing for payment of operating 
costs of such organizations. Such nonprofit organizations shall include 
community housing development organizations (as such term is defined in 
section 104 of this Act, community development financial institutions 
(as such term is defined in section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)), 
community development corporations (as such term is defined in section 
31131 of the National Community Economic Partnership Act of 1994 (42 
U.S.C. 13851)), and community-based development organizations.
            ``(3) Cost limits.--The Secretary shall establish 
        limitations on the amount of grant amounts that may be used, on 
        a per unit basis, for eligible activities. Such limitations 
        shall be the same as the per unit cost limits established 
        pursuant to section 212(e), as adjusted annually, and 
        established by number of bedrooms, market area, and eligible 
        activity.
    ``(f) Allocation Plan.--
            ``(1) Requirement.--With respect to a fiscal year, an 
        affordable housing trust fund shall be eligible to receive a 
        grant under this section for such fiscal year only if the trust 
        fund has established an allocation plan that has been submitted 
        to the Secretary and reviewed and approved by the Secretary as 
        in accordance with this subsection. The Secretary may 
        disapprove an allocation plan only if the plan fails to comply 
        with requirements set forth in this section.
            ``(2) Establishment.--An allocation plan in accordance with 
        this subsection is a plan, established by an affordable housing 
        trust fund for a fiscal year, for the distribution of grant 
        amounts provided under this section to the trust fund for such 
        fiscal year.
            ``(3) Notice.--In establishing an allocation plan, the 
        affordable housing trust fund shall notify the public of the 
        establishment of the plan, provide an opportunity for public 
        comments regarding the plan, consider any public comments 
        received, and make the completed plan available to the public.
            ``(4) Contents.--An allocation plan of an affordable 
        housing trust fund shall include the following information:
                    ``(A) Application requirements for eligible 
                entities and subrecipients.--The allocation plan shall 
                set forth the requirements for eligible entities and 
                eligible subrecipients to apply to receive assistance 
                from grant amounts under this section, including a 
                requirement that each such application include--
                            ``(i) a description of the eligible 
                        activities to be conducted using such 
                        assistance; and
                            ``(ii) a certification by the applicant 
                        that any housing units assisted with such 
                        assistance will comply with the requirements 
                        under--
                                    ``(I) subsection (k)(9)(A) 
                                (relating to rents charged);
                                    ``(II) subsection (k)(9)(B) 
                                (relating to tenant rent contribution);
                                    ``(III) subsection (k)(9)(C) 
                                (relating to availability of units for 
                                voucher holders); and
                                    ``(IV) subsection (k)(9)(E) 
                                (relating to use as qualified 
                                affordable housing for 40 years).
                    ``(B) Selection and preference criteria for 
                eligible entities and subrecipients.--The allocation 
                plan shall set forth the factors for consideration in 
                selecting among applicants that meet the application 
                requirements set forth pursuant to subparagraph (A), 
                which shall give preference to applicants based on--
                            ``(i) the amount of assistance leveraged by 
                        the applicant from private and other non-
                        Federal sources for carrying out the eligible 
                        activities to be funded with assistance from 
                        grant amounts under this section, including 
                        assistance made available under section 8 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f) that is devoted to the project 
                        that contains the qualified affordable housing 
                        to be assisted with such assistance;
                            ``(ii) the extent of local assistance that 
                        will be provided in carrying out the eligible 
                        activities, including--
                                    ``(I) financial assistance;
                                    ``(II) the extent to which the 
                                applicant has worked to address issues 
                                of siting and exclusionary zoning or 
                                other policies that are barriers to 
                                affordable housing with the unit of 
                                general local government in which the 
                                housing to be assisted with such 
                                assistance will be located; and
                                    ``(III) the extent to which the 
                                applicant has worked with the unit of 
                                general local government to reduce the 
                                barriers to affordable housing;
                            ``(iii) the degree to which the project in 
                        which the qualified affordable housing will be 
                        located will have residents of various incomes;
                            ``(iv) the extent of employment and other 
                        economic opportunities for low-income families 
                        in the area in which the housing will be 
                        located;
                            ``(v) the extent to which the applicant 
                        demonstrates the ability to maintain dwelling 
                        units as qualified affordable housing through 
                        the use of assistance made available under this 
                        section, assistance leveraged from non-Federal 
                        sources, assistance made available under 
                        section 8 of the United States Housing Act of 
                        1937 (42 U.S.C. 1437f), State or local 
                        assistance, programs to increase tenant income, 
                        cross-subsidization, and any other resources;
                            ``(vi) the extent to which the applicant 
                        demonstrates that the county in which the 
                        housing is to be located is experiencing an 
                        extremely low vacancy rate;
                            ``(vii) the extent to which the percentage 
                        of the housing located in such county that is 
                        extremely old housing exceeds 35 percent;
                            ``(viii) whether the applicant has provided 
                        that--
                                    ``(I) 75 percent of the grant 
                                amounts will be used for eligible 
                                activities relating to housing located 
                                in census tracts in which the number of 
                                families having incomes less than the 
                                poverty line is less than 20 percent or 
                                in communities undergoing 
                                revitalization; and
                                    ``(II) 25 percent of the grant 
                                amounts will be used for eligible 
                                activities relating to housing that is 
                                located in census tracts in which the 
                                number of families having incomes less 
                                than the poverty line is greater than 
                                20 percent and is not located in a 
                                community undergoing revitalization; 
                                and
                            ``(ix) whether the applicant has provided 
                        that--
                                    ``(I) not less than 45 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                that is affordable to families having 
                                incomes less than 30 percent of the 
                                greater of (aa) the median income for 
                                the area in which the housing is 
                                located, or (bb) the median income for 
                                the State in which the housing is 
                                located;
                                    ``(II) not less than 30 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                that is affordable to families having 
                                incomes not exceeding the amount earned 
                                by a family having one individual (or 
                                1.5 individuals in the case of a family 
                                consisting of 3 or more individuals), 
                                who is employed on a full-time basis in 
                                a position paying the higher of (aa) 
                                the Federal minimum wage under section 
                                6(a)(1) of the Fair Labor Standards Act 
                                of 1938 (29 U.S.C. 206(a)(1)), or (bb) 
                                the minimum wage under State law of the 
                                State in which the housing is located; 
                                and
                                    ``(III) not more than 25 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                for families having incomes that (aa) 
                                are greater than the incomes referred 
                                to in subclauses (I) and (II) of this 
                                clause, but (bb) do not exceed the 
                                higher of the median income for the 
                                State in which the housing is located 
                                or 80 percent of the median income for 
                                the area in which the housing is 
                                located.
            ``(5) Consolidated plan.--The Secretary shall provide that 
        a State or unit of general local government administering an 
        affordable housing trust fund may comply with the requirements 
        under this subsection for submission of an allocation plan 
        through the inclusion of any appropriate information in a 
        single consolidated submission used for purposes of applying 
        for other community planning and development and housing 
        assistance programs administered by the Secretary.
    ``(g) Forms of Assistance.--
            ``(1) In general.--Assistance from grant amounts under this 
        section may be distributed in the form of capital grants, 
        noninterest bearing or low-interest loans or advances, deferred 
        payment loans, guarantees, and any other forms of assistance 
        approved by the Secretary.
            ``(2) Repayments.--If an affordable housing trust fund 
        awards assistance from grant amounts under this section in the 
        form of a loan or other mechanism by which funds are later 
        repaid to the trust fund, any repayments received by the trust 
        fund shall be distributed by the trust fund in accordance with 
        the allocation plan under subsection (f) for the trust fund for 
        the fiscal year in which such repayments are made.
    ``(h) Coordination With Other Assistance.--In distributing 
assistance from grant amounts under this section, each affordable 
housing trust fund shall, to the maximum extent practicable, coordinate 
such distribution with the provision of other affordable housing 
assistance by the trust fund, including--
            ``(1) in the case of any State, housing credit dollar 
        amounts allocated by the State under section 42(h) of the 
        Internal Revenue Code of 1986;
            ``(2) assistance otherwise made available under this title 
        or the community development block grant program under title I 
        of the Housing and Community Development Act of 1974 (42 U.S.C. 
        5301 et seq.); and
            ``(3) private activity bonds.
    ``(i) Administration of Program By Subrecipient.--At the discretion 
of the affordable housing trust fund, the trust fund may select an 
eligible subrecipient to carry out all or a portion of the trust fund's 
responsibilities under this section, in accordance with this section.
    ``(j) Labor Standards.--Each affordable housing trust fund 
receiving grant amounts under this section shall ensure that contracts 
for eligible activities assisted with such amounts comply with the same 
requirements under section 286 that are applicable to contracts for 
construction of affordable housing assisted under such Act.
    ``(k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Eligible activities.--The term `eligible activities' 
        means activities relating to the providing qualified affordable 
        housing, including--
                    ``(A) the construction of new housing;
                    ``(B) the acquisition of real property;
                    ``(C) site preparation and improvement, including 
                demolition;
                    ``(D) rehabilitation of existing housing; and
                    ``(E) providing incentives to maintain existing 
                housing as qualified affordable housing and to 
                establish or extend any low-income affordability 
                restrictions for such housing, including covering 
                capital expenditures and operating costs.
            ``(2) Eligible entity.--The term `eligible entity' includes 
        any public or private nonprofit or for-profit entity, unit of 
        general local government, regional planning entity, and any 
        other entity engaged in the development, rehabilitation, or 
        preservation of qualified affordable housing, as determined by 
        the Secretary.
            ``(3) Eligible subrecipient.--The term `eligible 
        subrecipient' means a public agency or a nonprofit 
        organization, including a community development corporation, a 
        community development financial institution, a State or local 
        housing trust fund, and any other intermediary selected by an 
        affordable housing trust fund to administer all or a portion of 
        the trust fund's responsibilities under this section. The term 
        does not include any public agency or nonprofit organization 
        that receives money from an affordable housing trust fund 
        solely as a developer or owner of housing.
            ``(4) Extremely low-income families.--The term `extremely 
        low-income families' means families (as such term is defined in 
        section 3(b) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b))) whose incomes do not exceed 30 percent of the 
        median family 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 unusually high or low family incomes.
            ``(5) Extremely low vacancy rate.--The term `extremely low 
        vacancy rate' means a housing or rental vacancy rate of 2 
        percent or less.
            ``(6) Extremely old housing.--The term `extremely old 
        housing' means housing that is 45 years old or older.
            ``(7) Low-income families.--The term `low-income families' 
        has the meaning given such term in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            ``(8) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981, including any revision required by 
        such section.
            ``(9) Qualified affordable housing.--The term `qualified 
        affordable housing' means a rental dwelling unit that is 
        subject to legally binding commitments that ensure that the 
        dwelling unit meets all of the following requirements:
                    ``(A) Rents.--The dwelling unit bears a rent not 
                greater than the lesser of--
                            ``(i) the existing fair market rental 
                        established by the Secretary under section 8(c) 
                        of the United States Housing Act of 1937 (42 
                        U.S.C. 1437f(c)) for a dwelling unit of the 
                        same size in the same market area; and
                            ``(ii) a rent that does not exceed 30 
                        percent of the adjusted income of a family 
                        whose income equals 65 percent of the median 
                        income for the area, as determined by the 
                        Secretary, with adjustment for number of 
                        bedrooms in the unit, except that the Secretary 
                        may establish income ceilings higher or lower 
                        than 65 percent of the median for the area on 
                        the basis of the findings of the Secretary that 
                        such variations are necessary because of 
                        prevailing levels of construction costs or fair 
                        market rents, or unusually high or low family 
                        incomes.
                    ``(B) Tenant rent contribution.--The contribution 
                toward rent by the family residing in the dwelling unit 
                will not exceed 30 percent of the adjusted income of 
                such family.
                    ``(C) Availability of units for voucher holders.--
                The dwelling unit--
                            ``(i) is located in a project within which 
                        a percentage of units are made available only 
                        for occupancy by families assisted under the 
                        voucher program under section 8(o) of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437f(o)) (including project-based assistance 
                        under section 8(o)(13)) on the same basis as 
                        other families eligible for occupancy of the 
                        project (except that only the voucher holder's 
                        expected share of rent shall be considered), 
                        which percentage shall not be less than the 
                        percentage of the total cost of developing, 
                        rehabilitating, or preserving the project that 
                        is funded with assistance under this section; 
                        and
                            ``(ii) is one of the units that is subject 
                        to such occupancy requirements.
                    ``(D) Non-discrimination against voucher holders.--
                The dwelling unit is located in a project in which all 
                dwelling units are subject to enforceable restrictions 
                that provide that a unit may not be refused for leasing 
                to a holder of a voucher of eligibility under section 8 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1437f) because of the status of the prospective tenant 
                as a holder of such voucher.
                    ``(E) Duration of use.--The dwelling unit will 
                continue to be subject to the requirements under this 
                paragraph for not less than 40 years.
            ``(10) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
    ``(l) Authorizations of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal year 2003 and 
each fiscal year thereafter for grants under this section. Amounts made 
available for the HOME Investment Partnerships Act shall not be 
available for assistance under this subtitle.
    ``(m) Inapplicability of Home Provisions.--Except as specifically 
provided in this subtitle, no requirement under, or provision of, title 
I or subtitles A through F of this title shall apply to assistance 
provided under this subtitle.''.
    (b) Conforming Amendment.--Section 201 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12701 note) is amended by 
striking ``This title'' and inserting ``Subtitles A through F of this 
title''.

SEC. 102. 3-YEAR ON-SITE 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 annually, except 
        that, 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 of 1986 and is not considered (under such regulations as 
        the Secretary shall prescribe) to be high-risk housing, the on-
        site inspection referred to in paragraph (1) shall be conducted 
        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. 103. 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. 104. 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. 105. 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. 106. 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. 107. 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 reasonable 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), 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. 108. DOWNPAYMENT ASSISTANCE INITIATIVE.

    (a) Downpayment Assistance Initiative.--Subtitle E of title II of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12821) 
is amended to read as follows:

                     ``Subtitle E--Other Assistance

``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

    ``(a) Grant Authority.--The Secretary may make grants to 
participating jurisdictions to assist low-income families to achieve 
homeownership, in accordance with this section.
    ``(b) Eligible Activities.--Amounts made available under this 
section may be used only for downpayment assistance toward the purchase 
of single family housing by low-income families who are first-time 
homebuyers. For purposes of this title, the term `downpayment 
assistance' means assistance to help a family acquire a principal 
residence.
    ``(c) Housing Strategy.--To be eligible to receive a grant under 
this section for a fiscal year, a participating jurisdiction shall 
include in its comprehensive housing affordability strategy under 
section 105 for such year a description of the use of the grant 
amounts.
    ``(d) Formula Allocation.--For each fiscal year, the Secretary 
shall allocate any amounts made available for assistance under this 
section for the fiscal year in accordance with a formula, which shall 
be established by the Secretary, that considers a participating 
jurisdiction's need for and prior commitment to assistance to 
homebuyers. The formula may include minimum and maximum allocation 
amounts.
    ``(e) Reallocation.--If any amounts allocated to a participating 
jurisdiction under this section become available for reallocation, the 
amounts shall be reallocated to other participating jurisdictions in 
accordance with the formula established pursuant to subsection (c), 
except that if a local participating jurisdiction failed to receive 
amounts allocated under this section and is located in a State that is 
a participating jurisdiction, the funds shall be reallocated to the 
State.
    ``(f) Applicability of Other Provisions.--
            ``(1) In general.--Except as otherwise provided in this 
        section, grants under this section shall not be subject to the 
        provisions of this title.
            ``(2) Applicable provisions.--In addition to the 
        requirements of this section, grants under this section shall 
        be subject to the provisions of title I, sections 215(b), 218, 
        219, 221, 223, 224, and 226(a) of subtitle A of this title, and 
        subtitle F of this title.
            ``(3) References.-- In applying the requirements of 
        subtitle A referred to in paragraph (2)--
                    ``(A) any references to funds under subtitle A 
                shall be considered to refer to amounts made available 
                for assistance under this section; and
                    ``(B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall be 
                considered to refer to amounts allocated or reallocated 
                under subsection (d) or (e) of this section, 
                respectively.
    ``(g) Administrative Costs.--Notwithstanding section 212(c), a 
participating jurisdiction may use funds under subtitle A for 
administrative and planning costs of the jurisdiction in carrying out 
this section, and the limitation in section 212(c) shall be based on 
the total amount of funds available under subtitle A and this section.
    ``(h) Funding.--There are authorized to be appropriated such sums 
as may be necessary to carry out this section for each of fiscal years 
2003 and 2004.''.
    (b) Relocation Assistance and Downpayment Assistance.--Subtitle F 
of title II of the Cranston-Gonzalez National Affordable Housing Act is 
amended by inserting after section 290 (42 U.S.C. 12840) the following 
new section:

``SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

    ``The Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 shall not apply to downpayment assistance under 
this title.''.

SEC. 109. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

    (a) Eligible Activities.--Paragraph (2) of section 215(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(2)) is amended to read as follows:
            ``(2) is the principal residence of an owner who--
                    ``(A) is a member of a family that qualifies as a 
                low-income family--
                            ``(i) in the case of a contract to purchase 
                        existing housing, at the time of purchase;
                            ``(ii) in the case of a lease-purchase 
                        agreement for existing housing or for housing 
                        to be constructed, at the time the agreement is 
                        signed; or
                            ``(iii) in the case of a contract to 
                        purchase housing to be constructed, at the time 
                        the contract is signed; or
                    ``(B)(i) is a uniformed employee (which shall 
                include policemen, firemen, and sanitation and other 
                maintenance workers) or a teacher who is an employee, 
                of the participating jurisdiction (or an agency or 
                school district serving such jurisdiction) that is 
                investing funds made available under this subtitle to 
                support homeownership of the residence; and
                    ``(ii) is a member of a family whose income, at the 
                time referred to in clause (i), (ii), or (iii) of 
                subparagraph (A), as appropriate, and as determined by 
                the Secretary with adjustments for smaller and larger 
                families, does not exceed 115 percent of the median 
                income of the area, except that, with respect only to 
                such areas that the Secretary determines have high 
                housing costs, taking into consideration median house 
                prices and median family incomes for the area, such 
                income limitation shall be 150 percent of the median 
                income of the area, as determined by the Secretary with 
                adjustments for smaller and larger families;''.
    (b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by 
inserting before the semicolon the following: ``or families described 
in section 215(b)(2)(B)''.
    (c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
adding at the end the following new sentence: ``Notwithstanding the 
preceding sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds made 
available under this subtitle may only be invested (1) to provide 
amounts for downpayments on mortgages, (2) to pay reasonable closing 
costs normally associated with the purchase of a residence, (3) to 
obtain pre- or post-purchase counseling relating to the financial and 
other obligations of homeownership, or (4) to subsidize mortgage 
interest rates.''.

                    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), 213(b)(2), 
220(d)(3)(B)(iii), 221(d)(3)(ii), 221(d)(4)(ii), 231(c)(2), and 
234(e)(3) (12 U.S.C. 1713(c)(3), 1715e(b)(2), 1715k(d)(3)(B)(iii), 
1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2)), and 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. 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 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 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.''.

SEC. 204. HOSPITAL MORTGAGE INSURANCE LOSS MITIGATION DEMONSTRATION 
              PROGRAM.

    (a) In General.--Section 242 of the National Housing Act (12 U.S.C. 
1715z-7) is amended by adding at the end the following new subsection:
    ``(i) Loss Mitigation Demonstration Program.--
            ``(1) In general.--Only to the extent or in such amounts as 
        are provided in advance in appropriation Acts to carry out this 
        subsection, the Secretary may carry out a program to 
        demonstrate the effectiveness of taking loss mitigation actions 
        for hospitals with mortgages that are insured under this 
        section to reduce the risk of, prevent, or cure defaults of 
        financially troubled hospitals, to reduce claim or holding 
        costs of loans that are assigned to the Secretary, or to 
        maximize the recovery on loan assets. The demonstration program 
        may be carried out only with respect to not more than 3 such 
        hospitals.
            ``(2) Loss mitigation actions.--Loss mitigation actions 
        taken under the demonstration program under this subsection may 
        include the following actions:
                    ``(A) Partial payment of a claim under the contract 
                for mortgage insurance under this section.
                    ``(B) Temporary provision of operating assistance 
                funds, including debt service.
                    ``(C) Provision of financial assistance for 
                maintenance, repair, alterations, or the cost of other 
                capital improvements, including for conversion of 
                excess capacity of hospitals to facilities providing 
                health care and supportive housing for elderly persons 
                and families, including assisted living facilities, 
                nursing homes, and supportive housing for the elderly.
            ``(3) Requirements for assistance.--A hospital may be 
        provided financial assistance under the demonstration program 
        only if--
                    ``(A) the hospital has secured binding commitments 
                for matching funds of not less than 10 percent of the 
                cost of such assistance; and
                    ``(B) the hospital has met the requirements of any 
                applicable State certificate of need or other licensing 
                requirement.
            ``(4) Limitations on assistance.--Any payments or financial 
        assistance or relief under this subsection shall be made at the 
        sole discretion of the Secretary and on terms acceptable to the 
        Secretary except that--
                    ``(A) the total amount of payments and financial 
                assistance and relief shall not exceed 30 percent of 
                the outstanding project indebtedness insured by the 
                Secretary; and
                    ``(B) the mortgagor shall agree to repay such total 
                amount to the Secretary upon terms and conditions 
                acceptable to the Secretary.
            ``(5) Final decision.--A decision by the Secretary to 
        exercise or forgo exercising any authority under this 
        subsection shall not be subject to judicial review.
            ``(6) Applications.--The Secretary shall provide for 
        hospitals to submit applications for participation in the 
        demonstration program under this subsection, which shall 
        include information sufficient to determine compliance with the 
        requirements under paragraph (3).
            ``(7) Termination.--The demonstration program under this 
        subsection shall terminate on December 31, 2004.''.
    (b) Report.--Not later than September 30, 2005, the Secretary shall 
submit a report to the Congress analyzing the demonstration program 
under the amendment made by subsection (a) and the extent to which, if 
any, the assistance provided under such program reduced the net cost to 
the General Insurance Fund as calculated on a net present value basis.

                   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, third, and 
                        fifth 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 transferred subparagraph--
                    (A) 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--
                ''; and
                    (B) in clause (ii)(IV), by striking ``an area of 
                the'' and inserting ``a'';
            (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 of 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)), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new paragraph:
            ``(10) 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)) 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)(10)(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) in subsection (a), by redesignating clauses (1) and (2) 
        as clauses (A) and (B), respectively;
            (2) by redesignating subsections (a) through (f) as 
        paragraphs (1) through (6), respectively;
            (3) by realigning each paragraph 2 ems from the left 
        margin; and
            (4) 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).
            ``(8) The term `teacher' means an individual who is 
        employed on a part- or full-time basis as a teacher, teacher 
        assistant, 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 AT-RISK 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 at-risk 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 at-risk 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 At-Risk 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 at-
        risk 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).
    (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. 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. 226. 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. 227. 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. 228. 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 
        subparagraph:
            ``(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--
                    ``(i) choosing an inspector or consultant who 
                shall--
                            ``(I) meet the standards as the Secretary 
                        shall establish; and
                            ``(II) be an agent of the mortgagee; and
                    ``(ii) approving advances under the loan;''.

SEC. 229. 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.--Paragraph (9)(D) of section 
204(h) of the National Housing Act (12 U.S.C. 1710(h)(9)(D)), as so 
redesignated by the preceding provisions of this Act, 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. 230. 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. 231. PILOT PROGRAM FOR MANDATORY FIRST-TIME HOMEBUYER COUNSELING 
              FOR PROPERTIES IN HIGH FORECLOSURE NEIGHBORHOODS.

    (a) In General.--The Secretary shall carry out a pilot program 
under this section to determine whether, and the extent to which, 
requiring completion of a program (that is approved by the Secretary) 
of counseling with respect to the responsibilities and financial 
management involved in homeownership by any first-time homebuyers 
purchasing properties located in high foreclosure neighborhoods with 
mortgages insured under section 203 of the National Housing Act (12 
U.S.C. 1709) will help to prevent defaults and foreclosures on such 
mortgages.
    (b) Requirement.--Notwithstanding any provision of paragraph (2) of 
section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)), 
under the pilot program, during the 1-year period beginning not later 
than 6 months after the date of the enactment of this Act, as selected 
by the Secretary, the Secretary may not insure, or enter into a 
commitment to insure, a mortgage under such section 203 that is 
executed by a first-time homebuyer for a property that is located in 
the pilot program area unless the mortgagor has completed a program of 
counseling with respect to the responsibilities and financial 
management involved in homeownership that is approved by the Secretary.
    (c) Pilot Program Area.--The Secretary shall select a pilot program 
area for purposes of this section, which shall be a single limited 
area, within the jurisdiction of a single unit of general local 
government, for which the rate of foreclosure on residences subject to 
mortgages insured under such section 203 exceeds the lesser of--
            (1) 150 percent of the national early default claim rate 
        for such residences; and
            (2) the national early default claim rate for such 
        residences located within the area served by a field office of 
        the Department of Housing and Urban Development in whose area 
        the pilot program area is located.
    (d) Report.--Not later than 30 months after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit a report describing the effect of the requirement under 
subsection (b) on mortgage defaults and foreclosures and any other 
effects of such requirement, and making any recommendations regarding 
implementation of the requirement on a nationwide basis.

SEC. 232. DISPOSITION OF ASSETS IN REVITALIZATION AREAS.

    The Secretary of Housing and Urban Development shall continue to 
administer the Disposition of Assets in Revitalization Areas program as 
provided in section 602 of Public Law 105-276 and the Secretary shall 
renew all contracts and enter into new contracts with eligible 
participants in a manner consistent with the requirements of such 
section.

    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR GRANTS FOR REPAIRS TO 
              FEDERALLY ASSISTED HOUSING FOR THE ELDERLY.

    Section 202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is 
amended by striking subsection (h) and inserting the following new 
subsection:
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants for capital repair activities under subsection 
(a)(1) and for grants for conversion activities under subsection (a)(2) 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

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. DEMONSTRATION PROGRAM FOR ELDERLY HOUSING FOR 
              INTERGENERATIONAL FAMILIES.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a demonstration program to determine the feasibility of 
providing intergenerational dwelling units for intergenerational 
families in connection with the supportive housing program under 
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q).
    (b) Intergenerational Dwelling Units.--Under the demonstration 
program, the Secretary shall provide assistance under this section to 
private nonprofit organizations (as such term is defined in section 
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)) for use only for 
expanding the supply of intergenerational dwelling units, which units 
shall be provided--
            (1) by designating and retrofitting, for use as 
        intergenerational dwelling units, existing dwelling units that 
        are located within a project assisted under such section 202;
            (2) through development of buildings or projects comprised 
        solely of intergenerational dwelling units; or
            (3) through the development of an annex or addition to such 
        an existing project assisted under such section 202, which 
        contains intergenerational dwelling units, including through 
        the development of elder cottage housing opportunity units that 
        are small, freestanding, barrier-free, energy-efficient, 
        removable dwelling units located adjacent to a larger project 
        or dwelling.
    (c) Program Terms.--Assistance provided pursuant to this section 
shall be subject to the provisions of section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q), except that--
            (1) notwithstanding subsection (d)(1) of such section or 
        any provision of such section restricting occupancy to elderly 
        persons, any intergenerational dwelling unit assisted under the 
        demonstration program may be occupied as provided in subsection 
        (e)(2) of this section;
            (2) subsections (e) and (f) of such section 202 (relating 
        to applications and selection criteria) shall not apply;
            (3) in addition to the requirements under subsection (g) of 
        such section 202, the Secretary of Housing and Urban 
        Development shall ensure that occupants of dwelling units 
        assisted under the demonstration program are provided a range 
        of services tailored to the needs of elderly persons, children, 
        and intergenerational families and shall coordinate with the 
        heads of other Federal agencies as may be appropriate to ensure 
        the provision of such services; and
            (4) the Secretary may waive or alter any other provision of 
        such section 202 necessary to provide for assistance under the 
        demonstration program under this section.
    (d) Selection.--The Secretary of Housing and Urban Development 
shall provide for private nonprofit organizations to submit 
applications for assistance under this section and, during the period 
consisting of fiscal years 2003 through 2006 shall, to the extent 
amounts are available pursuant to subsection (g), select not less than 
2 and not more than 4 projects assisted under section 202 of the 
Housing Act of 1959 for such assistance based on the ability of the 
applicant to develop and operate intergenerational dwelling units and 
national geographical diversity among projects funded.
    (e) Definitions.--For purposes of this section:
            (1) Elderly person.--The term ``elderly person'' has the 
        meaning given such term in section 202(k) of the Housing Act of 
        1959 (12 U.S.C. 1701q(k)).
            (2) Intergenerational dwelling unit.--The term 
        ``intergenerational dwelling unit'' means a qualified dwelling 
        unit (as such term is defined in section 8(x)(4) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(x)(4))) that is 
        reserved for occupancy only by an intergenerational family.
            (3) Intergenerational family.--The term ``intergenerational 
        family'' means a covered family (as such term is defined in 
        section 8(x)(4) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(x)(4))) that has a head of household who is an 
        elderly person.
    (f) Report.--Not later than 36 months after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit a report to the Congress describing the demonstration 
program under this section and analyzing the effectiveness of the 
program.
    (g) Funding.--Of any amounts made available for assistance under 
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for each of 
fiscal years 2003 through 2006, the Secretary of Housing and Urban 
Development shall reserve amounts in such fiscal years as may be 
necessary to fund the demonstration projects selected under subsection 
(d). Such amounts shall be available for use only for providing 
assistance under this section.

SEC. 304. TREATMENT OF PROJECTS SUBJECT TO FORECLOSURE.

    (a) In General.--In the case of any project assisted with a loan 
under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as in 
effect before the enactment of the Cranston-Gonzalez National 
Affordable Housing Act, notwithstanding any foreclosure on the loan, 
any use restrictions applicable to the project regarding occupancy by 
elderly or handicapped families or the maximum income of families 
occupying dwelling units in the project shall continue to apply after 
such foreclosure until the expiration of the original term of such 
loan.
    (b) Income Limits.--Notwithstanding subsection (a), in the case of 
a project assisted with a loan described in such subsection, after 
foreclosure on such loan any maximum income limit for families 
occupying dwelling units in the project may be increased to not more 
than 80 percent of the median income for the area if such action is 
necessary to ensure the financial soundness of the project.
    (c) Transfer to Qualified Non-Profit Organizations.--In the case of 
the sale or other disposition of a project assisted with a loan 
described in subsection (a) pursuant to foreclosure on such loan, the 
Secretary of Housing and Urban Development shall provide a reasonable 
period during which only qualified nonprofit organizations (as such 
term is defined by the Secretary) shall have a right of first refusal 
to purchase the property.
    (d) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out this section.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

SEC. 401. HOUSING VOUCHER DEMONSTRATION.

    (a) In General.--For fiscal years 2003 and 2004, there is 
authorized to be appropriated to provide incremental assistance for 
project-based vouchers under section 8 of the United States Housing Act 
of 1937 (42 U.S.C. 1437f) the amount necessary to provide a total of 
5,000 such incremental vouchers. Vouchers provided pursuant to this 
section shall be used exclusively for extremely low-income families in 
connection with dwelling units in newly constructed or substantially 
rehabilitated housing.
    (b) Extremely Low-Income Families.--For purposes of this section, 
the term ``extremely low-income families'' means families (as such term 
is defined in section 3(b) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b))) whose incomes do not exceed the higher of--
            (1) 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
            (2) 30 percent of the national non-metropolitan median 
        income.

SEC. 402. FLEXIBILITY TO ASSIST HARD-TO-HOUSE FAMILIES.

    (a) In General.--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 2 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 directly assist eligible families in gaining 
        and maintaining occupancy in suitable dwelling units.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply only with respect to amounts appropriated for fiscal year 2003 or 
any fiscal year thereafter.

SEC. 403. CLARIFICATION ON PROHIBITION OF 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 and 
        inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) a family's eligibility to receive such 
                assistance shall be determined pursuant to the 
                provisions of law authorizing or requiring the 
                provision of enhanced voucher assistance pursuant to 
                the eligibility event that affected such family and a 
                family may not be required, as a condition of receiving 
                such assistance, to qualify under the selection 
                standards of a public housing agency for voucher 
                assistance under this section.''.

SEC. 404. 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. 405. ENSURING ABILITY TO USE ENHANCED VOUCHERS.

    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 (6); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(5) 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 accept enhanced voucher assistance for 
                lease of a dwelling unit in the same project on behalf 
                of a family who was residing in the project upon the 
                occurrence of such eligibility event; or
                    ``(B) to enter into a housing assistance payments 
                contract for such a unit.''.

SEC. 406. 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.

SEC. 409. INSPECTION OF UNITS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``(A) In general.--Except as 
                provided in paragraph (11),'' and inserting the 
                following:
                    ``(A) General rule.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and paragraph (11),''; and
                    (B) by inserting at the end the following:
                            ``(ii) Exception.--A public housing agency 
                        may commence payments to an owner, if the 
                        public housing agency--
                                    ``(I) has conducted an inspection 
                                of the building, which includes an 
                                inspection of a reasonable number of 
                                units in the 6 months prior to the date 
                                on which payment is made to the owner, 
                                and that inspection and any subsequent 
                                unit inspections have not turned up 
                                major deficiencies;
                                    ``(II) conducts an inspection of 
                                the unit for which the payment is being 
                                made not later than 30 days  after the 
date for which payment is made to the owner; and
                                    ``(III) has an agreement with the 
                                owner to correct any deficiencies and 
                                make any repairs in the unit not later 
                                than 30 days after the date on which 
                                the inspection was made under subclause 
                                (II).''; and
            (2) in subparagraph (D)--
                    (A) by striking ``(D) Annual inspections.--Each'' 
                and inserting the following:
                    ``(D) Annual inspections.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), each''; and
                    (B) by adding at the end the following:
                            ``(ii) Exception.--If a public housing 
                        agency has a large jurisdiction and is 
                        conducting inspections on a geographical basis, 
                        the public housing agency may comply with the 
                        annual inspection requirement by inspecting the 
                        unit within 9 to 15 months of the previous 
                        inspection.''.

SEC. 410. ESCROW OF TENANT RENT IN CASES OF OWNER FAILURE TO MAINTAIN 
              UNIT.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended by adding at the end the following new 
subparagraph:
                    ``(F) Escrow of tenant rent in cases of owner 
                failure to maintain unit.--Each housing assistance 
                payment contract under this subsection shall provide as 
                follows:
                            ``(i) Requirement.--In any case in which a 
                        public housing agency suspends assistance 
                        payments under this subsection with respect to 
                        a dwelling unit because of a failure on the 
                        part of the owner of the unit to maintain the 
                        unit in compliance with the housing quality 
                        standards established pursuant to this 
                        paragraph, the agency shall--
                                    ``(I) require the tenant to suspend 
                                payment to the owner of the tenant's 
                                monthly contribution toward rent and 
                                require the tenant to pay such amount 
                                into an escrow account established by 
                                the agency; and
                                    ``(II) notify the tenant and the 
                                owner of the failure to maintain the 
                                unit in compliance with such housing 
                                quality standards and of the actions 
                                required under this subparagraph.
                            ``(ii) Correction of noncompliance.--If the 
                        owner corrects the noncompliance within the 
                        period of time established by the agency for 
                        such purpose, the public housing agency shall 
                        release to the owner any tenant payments toward 
                        rent deposited in the escrow account.
                            ``(iii) Failure to correct noncompliance.--
                        If the owner fails to correct the noncompliance 
                        within the period of time established by the 
                        agency and the tenant moves from the dwelling 
                        unit because of such noncompliance, the public 
                        housing agency shall make any tenant payments 
                        toward rent that are deposited in the escrow 
                        account available on behalf of the tenant upon 
                        such move for costs of the move and for rental 
                        of a new dwelling unit.''.

SEC. 411. PROJECT-BASED VOUCHERS MODIFICATIONS.

    (a) In General.--Section 8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) is amended--
            (1) in subparagraph (C)(ii), by inserting before the period 
        at the end the following: ``, revitalizing a low-income 
        community, or preventing the displacement of extremely low-
        income families'';
            (2) in subparagraph (D)(ii), by striking ``apply in the 
        case of'' and all that follows through the period and inserting 
        the following: ``apply--
                                    ``(I) in the case of assistance 
                                under a contract for housing consisting 
                                of single family properties (buildings 
                                with 1 to 4 units);
                                    ``(II) for dwelling units that are 
                                specifically made available for 
                                households comprised of elderly 
                                families or disabled families; or
                                    ``(III) outside of a qualified 
                                census tract, for buildings with 5 to 
                                25 units or with dwelling units that 
                                are specifically made available for 
                                families receiving supportive services.
                        For purposes of this clause, the term 
                        `qualified census tract' has the same meaning 
                        given that term in section 42(d) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)). The Secretary may waive the limitations 
                        of this clause, consistent with the obligation 
                        to affirmatively further fair housing 
                        practices.'';
            (3) in subparagraph (F), by striking ``10 years'' and 
        inserting ``15 years'';
            (4) in subparagraph (J)--
                    (A) in the first sentence, by inserting before the 
                period the following: ``, or from 1 or more separate 
                project-based waiting lists established and maintained 
                in accordance with subparagraph (K). A public housing 
                agency may permit an owner to select families from a 
                waiting list for units assisted under this paragraph 
                maintained by the owner in accordance with subparagraph 
                (L). Regardless of whether a waiting list is maintained 
                under this subparagraph or under subparagraph (K) or 
                (L), families shall initially be selected from the 
                public housing agency's waiting list for assistance 
                under this subsection for at least \1/2\ of the vacant 
                units in a building made available with assistance 
                under this paragraph, unless the units are restricted, 
                under the tenant selection preferences adopted under 
                the annual plan submitted by the public housing agency 
                to the Secretary pursuant to section 5A(b), to 
                occupancy by persons who are receiving intensive 
                publicly funded services and who have a disability, as 
                defined in section 3 of this Act or section 422 of the 
                McKinney-Vento Homeless Assistance Act'';
                    (B) in the fifth sentence, by inserting before the 
                period the following: ``, unless the owner maintains a 
                waiting list under subparagraph (L)''; and
                    (C) in the last sentence, by striking ``and may 
                maintain'' and all that follows through ``on the 
                separate list'';
            (5) by redesignating subparagraph (K) as subparagraph (M); 
        and
            (6) by inserting after subparagraph (J) the following:
                    ``(K) Public housing agency waiting list.--
                            ``(i) In general.--A public housing agency 
                        may select families for assistance--
                                    ``(I) under subparagraph (J);
                                    ``(II) under this subparagraph for 
                                each property that receives assistance 
                                under this paragraph; or
                                    ``(III) under this subparagraph for 
                                similar properties that receive 
                                assistance under this paragraph.
                            ``(ii) Requirements.--A public housing 
                        agency that maintains a separate waiting list 
                        under this subparagraph--
                                    ``(I) shall provide 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, 
                                except that this subclause shall not 
                                apply to units assisted under this 
                                paragraph that are restricted, under 
                                tenant selection preferences adopted 
                                under the annual plan submitted by the 
                                public housing agency to the Secretary 
                                pursuant to section 5A(b) to occupancy 
                                by persons who are receiving intensive 
                                publicly funded services and who have a 
                                disability, as defined in section 3 of 
                                this Act or section 422 of the 
                                McKinney-Vento Homeless Assistance Act;
                                    ``(II) shall give preference to 
                                families on its tenant-based waiting 
                                list, if families are applying at the 
                                equivalent time and date with otherwise 
                                equivalent preference under the annual 
                                plan submitted by the public housing 
                                agency to the Secretary pursuant to 
                                section 5A(b); and
                                    ``(III) shall notify families that 
                                are applying for tenant-based 
                                assistance of the opportunity to be 
                                listed on the waiting list maintained 
                                under this subparagraph.
                    ``(L) Owner waiting list.--
                            ``(i) In general.--A public housing agency 
                        may allow an owner of a structure with a 
                        contract for assistance under this paragraph to 
                        maintain a waiting list for units assisted 
                        under this paragraph.
                            ``(ii) Agency plan.--The policy for a 
                        waiting list maintained under this subparagraph 
                        and any applicable preferences or selection 
                        criteria shall be included in the annual plan 
                        submitted by the public housing agency to the 
                        Secretary in accordance with section 5A(b).
                            ``(iii) Agency responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the public housing agency shall--
                                    ``(I) provide notice of the opening 
                                of the waiting list in the same manner 
                                and to the same extent as is required 
                                of the agency under subparagraph 
                                (K)(ii)(I);
                                    ``(II) notify families that apply 
                                for tenant-based assistance of the 
                                opportunity to be listed on that 
                                waiting list;
                                    ``(III) establish a mechanism to 
                                transmit applications submitted at its 
                                office to the owner for placement on 
                                that waiting list; and
                                    ``(IV) monitor, at reasonable 
                                intervals, the compliance by the owner 
                                with laws applicable to tenant 
                                selection and waiting lists, including 
                                civil rights laws, regulations, and 
                                certifications.
                            ``(iv) Owner responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the owner of the structure 
                        shall--
                                    ``(I) provide notice of the opening 
                                of the waiting list (unless the public 
                                housing agency agrees to provide such 
                                notice for the owner, or notice is not 
                                required pursuant to clause (iii)(I)) 
                                and provide preference to families on 
                                the tenant-based waiting list of the 
                                public housing agency in the same 
                                manner as is required under 
                                subparagraph (K);
                                    ``(II) place on its waiting list, 
                                families that apply at an office of the 
                                agency that accepts applications for 
                                tenant-based assistance;
                                    ``(III) cooperate with requests of 
                                the public housing agency for 
                                information concerning the waiting list 
                                and the tenant selection decisions of 
                                the owner; and
                                    ``(IV) submit written tenant 
                                selection policies and criteria to the 
                                public housing agency for approval, and 
                                make those policies and criteria 
                                available to the public.
                            ``(v) Right to informal review.--A family 
                        that is denied a unit by an owner that 
                        maintains a waiting list under this 
                        subparagraph shall have the same rights to 
                        informal review by a public housing agency as a 
                        family that is denied tenant-based assistance 
                        by a public housing agency, and such review 
                        shall be performed expeditiously so as not to 
                        impede the timely rental of units. The public 
                        housing agency's review at the informal hearing 
                        shall be limited to determining if the owner, 
                        if denying admission, followed applicable law 
                        and the procedures and criteria adopted by the 
                        owner and approved by the public housing agency 
                        for determining the eligibility of applicants 
                        for admission.
                            ``(vi) Applicability.--Except as provided 
                        in this subparagraph, a waiting list maintained 
                        by an owner shall be considered to be a waiting 
                        list maintained by a public housing agency for 
                        assistance under this subsection.
                            ``(vii) Limitation of liability.--No right 
                        of action shall exist against a public housing 
                        agency with respect to an owner's violation of 
                        any applicable law, unless the agency has 
                        actual knowledge that such violation has 
                        occurred or is occurring and--
                                    ``(I) the agency has failed to take 
                                action to cause the owner to cease such 
                                violation; or
                                    ``(II) the public housing agency 
                                has failed to comply with its 
                                responsibilities under clause (iii).''; 
                                and
            (7) by adding at the end the following:
                    ``(N) Fair housing, subsidy layering, and 
                competitive selection requirements.--A public housing 
                agency may attach assistance under this paragraph to 
                units without specific approval by the Secretary of 
                compliance with fair housing, subsidy layering, or 
                competitive selection requirements, if--
                            ``(i) for fair housing compliance, the 
                        units proposed to receive assistance under this 
                        paragraph receive a grant or a loan under a 
Federal program pursuant to which the Secretary, or a designee of the 
Secretary, has determined in accordance with regulations that the site 
location would meet applicable civil rights and fair housing 
requirements;
                            ``(ii) for compliance with subsidy layering 
                        requirements, consistent with the written 
                        policy of the Secretary, the public housing 
                        agency or another public agency has determined 
                        that addition of subsidies under this paragraph 
                        would not duplicate other public funding; or
                            ``(iii) for compliance with competitive 
                        selection requirements, an advertisement for 
                        capital funds announced the potential for 
                        availability of assistance under this 
                        paragraph.
                    ``(O) Use of assistance in conjunction with public 
                housing capital funds.--
                            ``(i) Capital fund and hope vi.--
                        Notwithstanding any provision to the contrary 
                        in this Act, a public housing agency may attach 
                        assistance under this paragraph to a structure 
                        or unit that receives assistance allocated to 
                        the public housing agency under the Capital 
                        Fund, established by section 9(d), or under 
                        section 24.
                            ``(ii) Operating fund.--A unit that 
                        receives assistance under this paragraph shall 
                        not be eligible for assistance under the 
                        Operating Fund established by section 9(e).''.
    (b) Effective Date.--
            (1) In general.--This section and the amendments made by 
        this section shall take effect upon the date of enactment of 
        this Act (with such minor exceptions as the Secretary may 
        specify).
            (2) Rules.--The Secretary shall promulgate rules, as may be 
        necessary, to carry out section 8(o)(13) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended by 
        this Act, and shall publish--
                    (A) proposed rules not later than 6 months after 
                the date of enactment of this Act; and
                    (B) final rules not later than 1 year after the 
                date of enactment of this Act.

SEC. 412. EXPANDED USE OF ENHANCED VOUCHERS.

    (a) In General.--Section 8(t) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(t)), as amended by the preceding provisions of 
this title, is further amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``Enhanced'' and inserting ``Except as 
        provided in paragraph (2), enhanced''; and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Enhanced vouchers for residents of units not 
        available for continued rental.--
                    ``(A) Voucher assistance.--In the case of a family 
                who is eligible for enhanced voucher assistance under 
                this subsection and who, on the date of the eligibility 
                event resulting in such family's eligibility, is 
                residing in a dwelling unit that is unavailable for 
                continued rental as provided in subparagraph (B) as a 
                result of such event, enhanced voucher assistance under 
                this subsection for the family shall be voucher 
                assistance under subsection (o), except that under such 
                enhanced voucher assistance--
                            ``(i) subject only to clause (iv), the 
                        assisted family shall pay as rent no less than 
                        the amount the family was paying on the date of 
                        the eligibility event for the project;
                            ``(ii) the assisted family may elect to 
                        reside in any other dwelling unit that is 
                        located within the zip code in which is located 
                        the project in which the family was residing on 
                        the date of the eligibility event for the 
                        project or within a zip code contiguous to such 
                        zip code, and if, during any period after such 
                        election that the family continues to reside, 
                        the rent for the dwelling unit of the family 
                        exceeds the applicable payment standard 
                        established pursuant to subsection (o) for the 
                        unit, the amount of rental assistance provided 
                        on behalf of the family shall be determined 
                        using a payment standard that is equal to the 
                        rent for the dwelling unit (as such rent may be 
                        increased from time-to-time), except that--
                                    ``(I) such rent shall be subject to 
                                paragraph (10)(A) of subsection (o);
                                    ``(II) such payment standard shall 
                                not exceed the greater of 150 percent 
                                of the applicable fair market rents or 
                                150 percent of the applicable payment 
                                standard for the market area; and
                                    ``(III) subject only to the limit 
                                in subclause (II), such payment 
                                standard shall not adversely affect 
                                such assisted families;
                            ``(iii) clause (ii) of this subparagraph 
                        shall not apply and the payment standard for 
                        the dwelling unit occupied by the family shall 
                        be determined in accordance with subsection (o) 
                        if--
                                    ``(I) the assisted family moves, at 
                                any time, to a dwelling unit that is 
                                not located within (aa) the zip code 
                                within which is located the project in 
                                which the family was residing on the 
                                date of the eligibility event for the 
                                project, or (bb) a zip code contiguous 
                                to such zip code; or
                                    ``(II) the voucher is made 
                                available for use by any family other 
                                than the original family on behalf of 
                                whom the voucher was provided; and
                            ``(iv) if the income of the assisted family 
                        declines to a significant extent, the 
                        percentage of income paid by the family for 
                        rent shall not exceed the greater of 30 percent 
                        or the percentage of income paid at the time of 
                        the eligibility event for the project.
                    ``(B) Unavailability due to conversion.--A dwelling 
                unit shall be considered to be unavailable for 
                continued rental as provided in this subparagraph if 
                the eligibility event for the project occurs in 
                connection with a conversion of the unit to 
                condominium, cooperative, or commercial use, after 
                having obtained all necessary land use approvals.''.
    (b) Applicability.--No funds for enhanced vouchers under section 
8(t)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(2)), as added by the amendments made by subsection (a) of this 
section, shall be provided from amounts appropriated for fiscal years 
prior to fiscal year 2003.
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall issue regulations necessary 
to carry out the amendment made by subsection (a).

SEC. 413. DEMONSTRATION PROGRAM FOR RENTAL ASSISTANCE FOR GRANDPARENT-
              HEADED OR RELATIVE-HEADED FAMILIES.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a demonstration program to determine the feasibility of 
providing rental assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) for the rental of suitable 
dwelling units by covered families.
    (b) Eligible Units.--Under the demonstration program, the Secretary 
shall make rental assistance amounts reserved pursuant to subsection 
(f) of this section available to public housing agencies selected to 
participate in the program for use only for assistance on behalf of 
covered families renting qualified dwelling units. Such a public 
housing agency may not initially provide voucher assistance under this 
section for any family after the end of fiscal year 2006.
    (c) Services.--The Secretary of Housing and Urban Development shall 
require any public housing agency participating in the demonstration 
program under this section to ensure that families receiving rental 
assistance pursuant to this section are provided with supportive 
services that are tailored to the needs of children and covered 
families. The Secretary shall coordinate with the heads of other 
Federal agencies as may be appropriate to assist in ensuring the 
provision of such services.
    (d) Selection.--The Secretary of Housing and Urban Development 
shall provide for public housing agencies to apply to participate in 
the demonstration program under this section and, during the period 
consisting of fiscal years 2003 through 2006 shall, to the extent 
amounts are available pursuant to subsection (f), select not less than 
two and not more than four agencies for such participation based on the 
ability of the applicant to provide assistance and services under the 
program and national geographical diversity among agencies 
participating in the program.
    (e) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit a report to the Congress describing the demonstration 
program under this section and analyzing the effectiveness of the 
program.
    (f) Funding.--Of any amounts made available for voucher assistance 
under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) for fiscal year 2003 and fiscal years thereafter, the 
Secretary of Housing and Urban Development shall reserve such amounts 
in such fiscal years as may be necessary to provide voucher assistance 
for the agencies selected under subsection (d) for use only for 
providing assistance under this section.

SEC. 414. ELIGIBILITY OF GRANDPARENT-HEADED AND RELATIVE-HEADED 
              FAMILIES FOR FAMILY UNIFICATION ASSISTANCE.

    Section 8(x) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(x)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``section 8'' and inserting ``this 
                section'';
                    (B) by striking ``and'' before ``(B)'' and 
                inserting a comma; and
                    (C) by inserting before the period at the end the 
                following: ``, or (C) a covered family, who is 
                otherwise eligible for such assistance, for rental of a 
                qualified dwelling unit'';
            (2) in the second sentence of paragraph (3)--
                    (A) by inserting ``, as appropriate (A)'' after 
                ``containing''; and
                    (B) by inserting before the period at the end the 
                following: ``, or (B) a description of the need for 
                assistance under this subsection for covered 
                families''; and
            (3) in paragraph (4), by adding at the end the following 
        new subparagraphs:
                    ``(C) Child.--The term `child' means an individual 
                who--
                            ``(i) is not attending school and is not 
                        more than 18 years of age; or
                            ``(ii) is attending school and is not more 
                        than 19 years of age.
                    ``(D) Covered family.--The term `covered family' 
                means a family that--
                            ``(i) includes a child; and
                            ``(ii) has a head of household who is--
                                    ``(I) a grandparent of the child 
                                who is raising the child; or
                                    ``(II) a relative of the child who 
                                is raising the child.
                    ``(E) Grandparent.--The term `grandparent' means, 
                with respect to a child, an individual who is a 
                grandparent or stepgrandparent of the child by blood or 
                marriage, regardless of the age of such individual. In 
                the case of a child who was adopted, the term includes 
                an individual who, by blood or marriage, is a 
                grandparent or stepgrandparent of the child as adopted.
                    ``(F) Qualified dwelling unit.--The term `qualified 
                dwelling unit' means a dwelling unit that--
                            ``(i) has at least 2 separate bedrooms;
                            ``(ii) is equipped with design features 
                        appropriate to meet the special physical needs 
                        of elderly persons, as needed; and
                            ``(iii) is equipped with design features 
                        appropriate to meet the special physical needs 
                        of young children.
                    ``(G) Raising a child.--The term `raising a child' 
                means, with respect to an individual, that the 
                individual--
                            ``(i) resides with the child; and
                            ``(ii) is the primary caregiver for the 
                        child--
                                    ``(I) because the biological or 
                                adoptive parents of the child do not 
                                reside with the child or are unable or 
                                unwilling to serve as the primary 
                                caregiver for the child; and
                                    ``(II) regardless of whether the 
                                individual has a legal relationship to 
                                the child (such as guardianship or 
                                legal custody) or is caring for the 
                                child informally and has no such legal 
                                relationship with the child.
                    ``(H) Relative.--The term `relative' means, with 
                respect to a child, an individual who--
                            ``(i) is not a parent of the child by blood 
                        or marriage; and
                            ``(ii) is a relative of the child by blood 
                        or marriage, regardless of the age of the 
                        individual.
                In the case of a child who was adopted, the term 
                includes an individual who, by blood or marriage, is a 
                relative of the family who adopted the child.''.

SEC. 415. INCREASED PAYMENT STANDARD.

    Section 8(o)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(1)(D)) is amended--
            (1) by striking ``(D) Approval.--The'' and inserting the 
        following:
                    ``(D) Exception payment standards.--
                            ``(i) Approval.--The''; and
            (2) by adding at the end the following:
                            ``(ii) Increased payment standard.--A 
                        public housing agency may establish a payment 
                        standard for the same size dwelling unit in a 
                        market area or portion of a market area between 
                        110 and 120 percent of the fair market rent, if 
                        the payment standard for the market area or 
                        portion of a market area has been set at 110 
                        percent or above for the 6 months prior to the 
                        establishment of the new payment standard and 
                        the public housing agency determines that it 
                        has--
                                    ``(I) a voucher success rate (the 
                                proportion of families that are issued 
                                a voucher that succeed in leasing a 
                                unit within the timeframe provided by 
                                the public housing agency to search for 
                                housing) of not more than 80 percent or 
                                has provided an extended search time of 
                                not less than 90 days to a significant 
                                number of voucher recipients; or
                                    ``(II) problems with concentration 
                                of the voucher holders in high poverty 
                                areas.
                            ``(iii) Disability accommodation.--A public 
                        housing agency may establish a payment standard 
                        of not more than 120 percent of the fair market 
                        rent where necessary as a reasonable 
                        accommodation for a person with a disability, 
                        without approval of the Secretary. A public 
                        housing agency may seek approval of the 
                        Secretary to use a payment standard greater 
                        than 120 percent of the fair market rent as a 
                        reasonable accommodation for a person with a 
                        disability.
                            ``(iv) Secretary approval.--A public 
                        housing agency may establish a payment standard 
                        in accordance with clause (ii) without approval 
                        of the Secretary, if the public housing agency 
                        includes in its annual plan that is submitted 
                        to the Secretary pursuant to section 5A(b)--
                                    ``(I) the reasons for the increase 
                                in the payment standard;
                                    ``(II) a description of how and why 
                                the public housing agency has 
                                determined that it meets the 
                                requirements of clause (ii); and
                                    ``(III) a description of other 
                                steps the public housing agency is 
                                taking, in addition to increasing the 
                                payment standard, to address the 
                                problems of voucher utilization, 
                                voucher success rates (the proportion 
                                of families that are issued a voucher 
                                that succeed in leasing a unit within 
                                the timeframe provided by the public 
                                housing agency to search for housing), 
                                and concentration of voucher holders.
                            ``(v) Applicability.--Clauses (ii) through 
                        (iv) shall apply with respect only to amounts 
                        made available for rental assistance under this 
                        subsection for fiscal year 2004 and fiscal 
                        years thereafter.''.

SEC. 416. PROTECTION OF INNOCENT TENANTS.

    Clause (iii) of section 8(d)(1)(B) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(d)(1)(B)(iii)) is amended by inserting before 
the semicolon at the end the following: ``; except that such criminal 
activity, engaged in by a member of a tenant's household or any guest 
or other person under the tenant's control, shall not be cause for 
termination of tenancy of the tenant if the tenant or immediate member 
of the tenant's family is a victim of domestic violence or dating 
violence and, as a result, could not control or prevent the criminal 
activity relating to domestic violence or dating violence; and except 
that nothing in this clause may be construed to limit the authority of 
a public housing agency to evict individuals who engage in criminal 
acts of physical violence against family members or others, and in all 
cases, a public housing agency shall consider the safety, security, and 
continued maintenance of victims of domestic violence to be of 
paramount importance''.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

SEC. 501. 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. 502. 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. 503. PUBLIC HOUSING AGENCY PLANS FOR CERTAIN 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 certain 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 qualified 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 
                        qualified 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 `qualified small public housing agency' means 
                a public housing agency that meets all of the following 
                requirements:
                            ``(i) The sum of (I) the number of public 
                        housing dwelling units administered by the 
                        agency, and (II) the number of vouchers under 
                        section 8(o) of the United States Housing Act 
                        of 1937 (42 U.S.C. 1437f(o)) administered by 
                        the agency, is 100 or fewer.
                            ``(ii) The agency is not designated 
                        pursuant to section 6(j)(2) as a troubled 
                        public housing agency.
                            ``(iii) The agency provides assurances 
                        satisfactory to the Secretary that, during 
                        fiscal years 2003, 2004, and 2005, 
                        notwithstanding the inapplicability of the 
                        requirements under section 5A relating to 
                        resident advisory boards and public hearings 
                        and notice, residents of public housing 
                        administered by the agency will have an 
                        adequate and comparable opportunity for 
                        participation and notice regarding 
                        establishment of the goals, objectives, and 
                        policies of the 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 that would be imposed on public housing agencies described in 
section 5A(b)(3)(B)(i) of the United States Housing Act of 1937 (42 
U.S.C. 1437c-1(b)(3)(B)(i)), as amended by subsection (a) of this 
section, if such agencies were required to comply fully with the 
requirements under section 5A(b)(1) of such Act.

SEC. 504. AFFORDABLE ASSISTED LIVING FACILITIES DEMONSTRATION PROGRAM.

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

``SEC. 36. DEMONSTRATION PROGRAM FOR GRANTS FOR CONVERSION OF PUBLIC 
              HOUSING TO ASSISTED LIVING FACILITIES.

    ``(a) Grant Authority.--To the extent only that amounts are 
appropriated in advance to carry out this section, the Secretary shall 
carry out a program, in accordance with this section, to demonstrate 
the effectiveness of making grants to public housing agencies for use 
for activities designed to convert dwelling units in eligible projects 
described in subsection (b) to assisted living facilities or other 
facilities that expand the availability of supportive services, to 
enhance the ability of elderly persons to maintain independent living.
    ``(b) Eligible Projects.--An eligible project described in this 
subsection is a public housing project (or a portion thereof) that is 
primarily occupied by elderly persons.
    ``(c) Applications.--Applications for grants under the 
demonstration program under this section shall be submitted to the 
Secretary in accordance with such procedures as the Secretary shall 
establish. Such applications shall contain--
            ``(1) a description of the proposed conversion activities 
        for which a grant under the program is requested;
            ``(2) the amount of the grant requested;
            ``(3) a description of the resources that are expected to 
        be made available, if any, in conjunction with the grant under 
        the program; and
            ``(4) such other information or certifications that the 
        Secretary determines to be necessary or appropriate.
    ``(d) Funding for Services.--The Secretary may not make a grant 
under the demonstration program under this section unless the 
application contains sufficient evidence, in the determination of the 
Secretary, that there will be adequate funding for supportive services 
for residents of the facility converted with grant amounts.
    ``(e) Service Coordinators.--An application for a grant under the 
demonstration program under this section may include a request for, and 
the Secretary may provide funds under the grant for, amounts to provide 
service coordinators to assist in the provision of supportive services 
for residents of the facilities converted with grant amounts.
    ``(f) Scope.--Grants under the demonstration program under this 
section may be made only with respect to three eligible projects.
    ``(g) Selection Criteria.--The Secretary shall select applications 
for grants under the demonstration program under this section based 
upon selection criteria, which shall be established by the Secretary 
and shall include--
            ``(1) the extent to which the conversion is likely to 
        provide assisted living facilities or supportive services that 
        are needed or are expected to be needed by the categories of 
        elderly persons that the assisted living facility is intended 
        to serve;
            ``(2) the extent of financial need on the part of the 
        applicant for funding to carry out the conversion activities 
        proposed;
            ``(3) the extent to which the agency has evidenced 
        community support for the conversion, by such indicators as 
        letters of support from the local community for the conversion 
        and financial contributions from public and private sources;
            ``(4) the extent to which the applicant demonstrates a 
        strong commitment to promoting the autonomy and independence of 
        the elderly persons that the assisted living facility or other 
        supportive services facility is intended to serve;
            ``(5) the quality, completeness, and managerial capability 
        of providing services to elderly residents, especially in such 
        areas as meals, 24-hour staffing, and on-site health care; and
            ``(6) such other criteria as the Secretary determines to be 
        appropriate to ensure that funds made available under the 
        demonstration program under this section are used effectively.
    ``(h) Definition.--For the purposes of this section, the term 
`assisted living facility' has the meaning given such term in section 
232(b) of the National Housing Act (12 U.S.C. 1715w(b)).
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated for providing grants under the demonstration program under 
this section such sums as may be necessary for each of fiscal years 
2003 and 2004.''.

SEC. 505. PROTECTION OF INNOCENT TENANTS.

    Paragraph (6) of section 6(l) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(l)(6)) is amended by inserting before the 
semicolon at the end the following: ``; except that such criminal 
activity, engaged in by a member of a tenant's household or any guest 
or other person under the tenant's control, shall not be cause for 
termination of tenancy of the tenant if the tenant or immediate member 
of the tenant's family is a victim of domestic violence or dating 
violence and, as a result, could not control or prevent the criminal 
activity relating to domestic violence or dating violence; and except 
that nothing in this paragraph may be construed to limit the authority 
of a public housing agency to evict individuals who engage in criminal 
acts of physical violence against family members or others, and in all 
cases, a public housing agency shall consider the safety, security, and 
continued maintenance of victims of domestic violence to be of 
paramount importance''.

               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) by striking the matter preceding subparagraph (A) and 
        inserting the following:
            ``(2) Selection criteria.--The Secretary shall establish 
        criteria for the award of grants under this section and shall 
        include among the factors--'';
            (2) in subparagraph (B), by striking ``large-scale'';
            (3) in subparagraph (D), by inserting ``and ongoing 
        implementation'' after ``development'';
            (4) in subparagraph (H), by striking ``and'' at the end;
            (5) by redesignating subparagraph (I) as subparagraph (M); 
        and
            (6) by inserting after subparagraph (H) the following new 
        subparagraphs:
                    ``(I) the extent to which the applicant can 
                commence and complete the revitalization plan 
                expeditiously;
                    ``(J) the extent to which the plan minimizes 
                temporary or permanent displacement of current 
                residents of the public housing site who wish to remain 
                in or return to the revitalized community;
                    ``(K) the extent to which the plan sustains or 
                creates more project-based housing units available to 
                persons eligible for public housing in markets where 
                there is demand for the maintenance or creation of such 
                units;
                    ``(L) the extent to which the plan gives to 
                existing residents priority for occupancy in dwelling 
                units in the revitalized community; 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''.

SEC. 524. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING THROUGH MAIN 
              STREET PROJECTS.

    (a) Purposes.--Section 24(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(a)) is amended by adding after and below 
paragraph (4) the following:
``It is also the purpose of this section to provide assistance to 
smaller communities for the purpose of facilitating the development of 
affordable housing for low-income families that is undertaken in 
connection with a main street revitalization or redevelopment project 
in such communities.''.
    (b) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--Section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) by redesignating subsection (n) as subsection (o); and
            (2) by inserting after subsection (m) the following new 
        subsection:
    ``(n) Grants for Assisting Affordable Housing Developed Through 
Main Street Projects in Smaller Communities.--
            ``(1) Authority and Use of Grant Amounts.--The Secretary 
        may make grants under this subsection to smaller communities. 
        Such grant amounts shall be used by smaller communities only to 
        provide assistance to carry out eligible affordable housing 
        activities under paragraph (3) in connection with an eligible 
        project under paragraph (2).
            ``(2) Eligible project.--For purposes of this subsection, 
        the term `eligible project' means a project that--
                    ``(A) the Secretary determines, under the criteria 
                established pursuant to paragraph (3), is a main street 
                project;
                    ``(B) is carried out within the jurisdiction of 
                smaller community receiving the grant; and
                    ``(C) involves the development of affordable 
                housing that is located in the commercial area that is 
                the subject of the project.
            ``(3) Main street projects.--The Secretary shall establish 
        requirements for a project to be consider a main street project 
        for purposes of this section, which shall require that the 
        project--
                    ``(A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional commercial 
                area;
                    ``(B) involves investment, or other participation, 
                by the government for, and private entities in, the 
                community in which the project is carried out; and
                    ``(C) complies with such historic preservation 
                guidelines or principles as the Secretary shall 
                identify to preserve significant historic or 
                traditional architectural and design features in the 
                structures or area involved in the project.
            ``(4) Eligible affordable housing activities.--For purposes 
        of this subsection, the activities described in subsection 
        (d)(1) shall be considered eligible affordable housing 
        activities, except that--
                    ``(A) such activities shall be conducted with 
                respect to affordable housing rather than with respect 
                to severely distressed public housing projects; and
                    ``(B) eligible affordable housing activities under 
                this subsection shall not include the activities 
                described in subparagraphs (B) through (F) or (J) 
                through (L) of subsection (d)(1).
            ``(5) Maximum grant amount.--A grant under this subsection 
        for a fiscal year for a single smaller community may not exceed 
        $1,000,000.
            ``(6) Contribution requirement.--A smaller community 
        applying for a grant under this subsection shall be considered 
        an applicant for purposes of subsection (c) (relating to 
        contributions by applicants), except that--
                    ``(A) such supplemental amounts shall be used only 
                for carrying out eligible affordable housing 
                activities; and
                    ``(B) paragraphs (1)(B) and (3) shall not apply to 
                grants under this subsection.
            ``(7) Applications and selection.--
                    ``(A) Application.--Pursuant to subsection (e)(1), 
                the Secretary shall provide for smaller communities to 
                apply for grants under this subsection, except that the 
                Secretary may establish such separate or additional 
                criteria for applications for such grants as may be 
                appropriate to carry out this subsection.
                    ``(B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of grants 
                under this subsection, which shall be based on the 
                selection criteria established pursuant to subsection 
                (e)(2), with such changes as may be appropriate to 
                carry out the purposes of this subsection.
            ``(8) Cost limits.--The cost limits established pursuant to 
        subsection (f) shall apply to eligible affordable housing 
        activities assisted with grant amounts under this subsection.
            ``(9) Inapplicability of other provisions.--The provisions 
        of subsections (g) (relating to disposition and replacement of 
        severely distressed public housing), (h) (relating to 
        administration of grants by other entities), and (i) (relating 
        to withdrawal of funding) shall not apply to grants under this 
        subsection.
            ``(10) Reporting.--The Secretary shall require each smaller 
        community receiving a grant under this subsection to submit a 
        report regarding the use of all amounts provided under the 
        grant.
            ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Affordable housing.--The term `affordable 
                housing' means rental or homeownership dwelling units 
                that--
                            ``(i) are made available for initial 
                        occupancy subject to the same rules regarding 
                        level of income and income mix as dwelling 
                        units in public housing projects assisted with 
                        a grant under this section; and
                            ``(ii) are subject to the same rules 
                        regarding occupant contribution toward rent or 
                        purchase and terms of rental or purchase as 
                        dwelling units in public housing projects 
                        assisted with a grant under this section.
                    ``(B) Smaller community.--The term `smaller 
                community' means a unit of general local government (as 
                such term is defined in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302)) 
                that--
                            ``(i) has a population of 30,000 or fewer; 
                        and
                            ``(ii)(I) may not be not served by a public 
                        housing agency; or
                            ``(II) is served by a single public housing 
                        agency, which agency administers 100 or fewer 
                        public housing dwelling units.''.
    (c) Annual Report.--Section 24(l) of the United States Housing Act 
of 1937 (42 U.S.C. 1437v(l)) is amended--
            (1) in paragraph (3), by striking ``; and'' and inserting 
        ``, including a specification of the amount and type of 
        assistance provided under subsection (n);'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) the types of projects funded, and number of 
        affordable housing dwelling units developed with, grants under 
        subsection (n); and''.
    (d) Funding.--Section 24(m) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(m)) is amended by adding at the end the following 
new paragraph:
            ``(3) Of the amount appropriated pursuant to paragraph (1) 
        for any fiscal year, the Secretary shall provide up to 5 
        percent for use only for grants under subsection (n).''.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

SEC. 601. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

    (a) Authorization of Appropriations.--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.''.
    (b) Redesignation of Council.--Title II of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11311 et seq.) is amended--
            (1) by striking the title designation and heading and 
        inserting the following:

    ``TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS'';

            (2) in section 201, by striking ``Interagency Council on 
        the Homeless'' and inserting ``United States Interagency 
        Council on Homelessness''; and
            (3) in section 207(1), by striking ``Interagency Council on 
        the Homeless'' and inserting ``United States Interagency 
        Council on Homelessness''.
    (c) Conforming Amendments.--The McKinney-Vento Homeless Assistance 
Act is amended--
            (1) in section 102(b)(1) (42 U.S.C. 11301(b)(1)), by 
        striking ``an Interagency Council on the Homeless'' and 
        inserting ``the United States Interagency Council on 
        Homelessness'';
            (2) in section 501 (42 U.S.C. 11411), in subsections 
        (c)(2)(A) and (d)(3), by striking ``Interagency Council on the 
        Homeless'' each place such term appears and inserting ``United 
        States Interagency Council on Homelessness''; and
            (3) in the table of contents in section 101(b) (42 U.S.C. 
        11301 note), by striking the item relating to title II and 
        inserting the following new item:

    ``TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS''.

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. 
For purposes of this section, the term `permanent housing activities' 
includes permanent housing designed primarily to serve homeless 
families with children.''.
    (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. HOUSING FOR DOMESTIC VIOLENCE AND SEXUAL ASSAULT VICTIMS.

    (a) Funding.--There are authorized to be appropriated such sums as 
may be necessary for each of fiscal years 2003 through 2007 for 
assistance under this section.
    (b) Housing Assistance.--Any amounts made available pursuant to 
subsection (a) of this section shall be available to the Secretary only 
to provide assistance to qualified organizations for the purpose of 
providing, on behalf only of eligible individuals or families--
            (1) supportive housing (as such term is defined in section 
        422 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11382));
            (2) tenant-based rental assistance;
            (3) financial assistance for a security deposit, first 
        month's rent, or ongoing rental assistance; or
            (4) project-based transitional housing, except that such 
        assistance may be used only to cover expenses of renovation, 
        repair, conversion and operation of such housing.
    (c) Eligible Individuals and Families.--An eligible individual or 
family under this paragraph is an individual or family that meets both 
of the following requirements:
            (1) Victims.--The individual has been victimized by 
        domestic violence, stalking, or adult or child sexual assault 
        or the family is a victimized family.
            (2) Relocation.--The qualified organization providing the 
        housing assistance pursuant to subsection (b) for which the 
        individual or family is applying has determined that the 
        individual or member of the family who was a victim of the 
        domestic violence, stalking, or adult or child sexual assault 
        reasonably believes that relocation from such residence will 
        assist in avoiding future domestic violence, stalking, or adult 
        or child sexual assault against such individual or another 
        member of the family.
    (d) Matching Requirement.--Each qualified organization receiving 
assistance under this section shall supplement such assistance with a 
25 percent match of funds for supportive services (as such term is 
defined in section 422 of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11382)) from sources other than this section. Each such 
organization shall certify to the Secretary its compliance with this 
section and shall include with the certification a description of the 
sources and amounts of such supplemental funds.
    (e) Allocation.--
            (1) Competition.--Amounts made available pursuant to this 
        section shall be allocated by the Secretary, among qualified 
        organizations that submit applications to the Secretary, under 
        a national competition based on demonstrated need for such 
        assistance, including the extent of service provided to 
        underserved populations (as such term is defined in section 
        2003 of the Omnibus Crime Control and Safe Streets Act of 1968 
        (42 U.S.C. 3796gg-2)) and the ability to undertake and carry 
        out a program under this section, as the Secretary shall 
        determine.
            (2) Set aside for indian tribes.--Of the total funds made 
        available pursuant to subsection (a) for any fiscal year, at 
        least 10 percent shall be used for grants to Indian tribes or 
        Indian tribal organizations that provide emergency shelter, 
        transitional housing, or permanent housing or supportive 
        services to individuals or families victimized by domestic 
        violence, stalking, or adult or child sexual assault. Indian 
        tribes or Indian tribal organizations that receive such grants 
        may apply for and receive other grants from the total funds 
        appropriated under this section. All other grants awarded shall 
        go to qualified organizations.
    (f) Applications.--The Secretary shall provide for qualified 
organizations to apply for assistance under this section and shall 
require that such an application shall--
            (1) contain such certifications as the Secretary shall 
        require to ensure that--
                    (A) the applicant organization, to the extent 
                practicable, has entered into cooperative agreements or 
                memoranda of understanding with homeless coalitions, 
                public housing authorities, and community-based 
                agencies that represent underserved populations to 
                establish procedures for facilitating referrals to 
                transitional housing and for implementing tenant-based 
                housing assistance programs; and
                    (B) any construction or physical improvements 
                carried out with assistance amounts under this section 
                will comply with any applicable housing, safety, and 
                licensing codes, laws, or regulations of the State or 
                local government in which the structure is located; and
            (2) describe how the services to be provided with 
        assistance under this section will assist victims of domestic 
        violence in obtaining permanent housing.
    (g) Confidentiality.--A qualified organization may not be provided 
assistance under this section unless the organization agrees to ensure 
the confidentiality of--
            (1) the names of individuals and their dependents assisted 
        with services or in facilities funded, in whole or in part, 
        with such amounts; and
            (2) any other information regarding such individuals and 
        dependents,
except to the extent such information is otherwise required by law to 
be disclosed.
    (h) Definitions.--For purposes of this section:
            (1) Domestic violence.--The term ``domestic violence'' 
        includes acts or threats of violence or extreme cruelty (as 
        such term is referred to in section 216 of the Immigration and 
        Nationality Act (8 U.S.C. 1186a)), not including acts of self-
        defense, committed by a current or former spouse of the victim, 
        by a person with whom the victim has a child in common, by a 
        person who is cohabiting with or has cohabited with the victim, 
        by a person who is or has been in a continuing social 
relationship of a romantic or intimate nature with the victim, by a 
person similarly situated to a spouse of the victim under the domestic 
or family violence laws of the jurisdiction, or by any other person 
against a victim who is protected from that person's acts under the 
domestic or family violence laws of the jurisdiction.
            (2) Victimized family.--
                    (A) In general.--The term ``victimized family'' 
                means a family or household that includes an individual 
                who has been determined under subparagraph (B) to have 
                been a victim of domestic violence, stalking, or adult 
                or child sexual assault, but does not include any 
                individual who committed the domestic violence, sexual 
                assault, or adult or child sexual assault. The term 
                includes any such family or household in which only a 
                minor or minors are the individual or individuals who 
                was or were a victim of domestic violence, stalking, or 
                sexual assault only if such family or household also 
                includes a parent, stepparent, legal guardian, or other 
                responsible caretaker for the child.
                    (B) Determination.--For purposes of subparagraph 
                (A), a determination under this subparagraph is a 
                determination that domestic violence, stalking, or 
                adult or child sexual assault has been committed, which 
                is made by any agency or official of a State, Indian 
                tribe, tribal organization, or unit of general local 
                government based upon any reliable evidence that 
                domestic violence, stalking, or adult or child sexual 
                assault has occurred. A victim's statement that 
                domestic violence, stalking, or adult or child sexual 
                assault has occurred shall be sufficient unless the 
                agency has an independent, reasonable basis to find the 
                individual not credible.
            (3) Indian tribe.--The term ``Indian Tribe'' shall have the 
        same meaning given the term in section 2003 of the Omnibus 
        Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-
        2).
            (4) Qualified organization.--The term ``qualified 
        organization'' means a private, nongovernmental organization 
        that--
                    (A) is organized, or has as its primary purposes, 
                to provide emergency shelter, transitional housing, or 
                permanent housing for victims of domestic violence, 
                stalking, or adult or child sexual assault or is a 
                medical, legal, counseling, social, psychological, 
                health, job training, educational, life skills 
                development, or other social services program for 
                victims of domestic violence, stalking, or adult or 
                child sexual assault that undertakes a collaborative 
                project with a qualified, nonprofit, nongovernmental 
                organization that primarily provides emergency shelter, 
                transitional housing, or permanent housing for low-
                income people;
                    (B) is organized under State, tribal, or local 
                laws;
                    (C) has no part of its net earnings inuring to the 
                benefit of any member, shareholder, founder, 
                contributor, or individual; and
                    (D) is approved by the Secretary as to financial 
                responsibility.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (6) Sexual assault.--The term ``sexual assault'' means any 
        conduct proscribed by chapter 109A of title 18, United States 
        Code, whether or not the conduct occurs in the special maritime 
        and territorial jurisdiction of the United States, on an Indian 
        reservation, or in a Federal prison and includes both assaults 
        committed by offenders who are strangers to the victims and 
        assaults committed by offenders who are known to the victims or 
        related by blood or marriage to the victim.
            (7) Stalking.--The term ``stalking'' means engaging in a 
        course of conduct directed at a specific person that would 
        cause a reasonable person to fear death, sexual assault, or 
        bodily injury to himself or herself or a member of his or her 
        immediate family, when the person engaging in such conduct has 
        knowledge or should have knowledge that the specific person 
        will be placed in reasonable fear of death, sexual assault, or 
        bodily injury to himself or herself or a member of his or her 
        immediate family and when the conduct induces fear in the 
        specific person of death, sexual assault, or bodily injury to 
        himself or herself or a member of his or her immediate family.
            (8) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.
            (9) Transitional housing.--The term ``transitional 
        housing'' includes short-term housing and has the meaning given 
        such term in section 424(b) of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11384(b)).
            (10) Tribal organization.--The term ``tribal organization'' 
        means a private, nonprofit, nongovernmental, or tribally 
        chartered organization--
                    (A) whose primary purpose is to provide emergency 
                shelter, transitional housing, or permanent housing or 
                supportive services to individuals or families 
                victimized by domestic violence, stalking, or adult or 
                child sexual assault;
                    (B) that operates within the exterior boundaries of 
                an Indian reservation; and
                    (C) whose board of directors reflects the 
                population served.
            (11) Unit of general local government.--The term ``unit of 
        general local government'' has the meaning given the term in 
        section 102(a) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302(a)).

SEC. 608. NATIONAL GOAL OF ENDING HOMELESSNESS.

    (a) In General.--The McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11301 et seq.) is amended by inserting before title I the 
following new section:

``SECTION 1. NATIONAL GOAL OF ENDING HOMELESSNESS.

    ``The Congress hereby declares that it is a national goal to end 
homelessness within 10 years after the enactment of the Housing 
Affordability for America Act of 2002.''.
    (b) Amendment 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 by inserting before the item relating to title I 
the following new item:

        ``Sec. 1. National goal of ending homelessness.''.

SEC. 609. CLERICAL AMENDMENTS.

    (a) Amendment to Subtitle Heading.--The heading for subtitle A of 
title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 
et seq.) is amended to read as follows:

                  ``Subtitle A--General Provisions''.

    (b) 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.'';
        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 and 
2004.''.
    (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 and 2004''.
            (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 and 2004''.
    (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 and 2004''.

SEC. 702. COMPREHENSIVE PLANNING UNDER NATIVE AMERICAN HOUSING BLOCK 
              GRANT PROGRAM.

    Section 101(h) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4111(h)) is amended--
            (1) by inserting after ``Act'' the first place such term 
        appears the following: ``for comprehensive housing and 
        community development planning activities and''; and
            (2) in the subsection heading, by inserting ``and 
        Planning'' after ``Administrative''.

SEC. 703. LANDS TITLE REPORT COMMISSION.

    (a) Establishment.--Section 501(a) of the American Homeownership 
and Economic Opportunity Act of 2000 (25 U.S.C. 4043 note) is amended 
by striking ``Subject to sums being provided in advance in 
appropriations Acts, there'' and inserting ``There''.
    (b) Appointment of Members.--Section 501(b)(1) of the American 
Homeownership and Economic Opportunity Act of 2000 (25 U.S.C. 4043 
note) is amended by striking ``this Act'' and inserting ``the American 
Indian Lands Title Report Commission Corrections Act''.
    (c) Initial Meeting.--Section 501(c) of the American Homeownership 
and Economic Opportunity Act of 2000 (25 U.S.C. 4043 note) is amended 
by striking ``the Chairperson of the Commission determines that sums 
sufficient for the Commission to carry out its duties under this Act 
have been appropriated for such purpose'' and inserting ``the 
completion of the appointment of the initial members pursuant to 
subsection (b)(1)''.

                  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 individual program 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 and 2004''.

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 
and 2004.''.

SEC. 905. 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;
            (3) in paragraph (25), by striking the period at the end 
        and inserting a semicolon; and
            (4) by inserting at the end the following new paragraph:
            ``(26) 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 each of 
fiscal years 2003 and 2004 for assistance only for activities pursuant 
to section 105(a)(24) of such Act.

SEC. 906. 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. 907. 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).

SEC. 908. STUDY OF COMMUNITY RENEWAL PROGRAM.

    (a) In General.--The Secretary of Housing and Urban Development 
shall conduct a study to analyze the extent to which use of 1990 census 
data for purposes of determining eligibility of areas for designation 
as renewal communities for purposes of the community renewal program 
under subchapter X of chapter 1 of Internal Revenue Code of 1986 (26 
U.S.C. 1400E et seq.), rather than data from the 2000 census, impairs 
the ability of communities to fully carry out the purposes of such 
program.
    (b) Report.--The Secretary of Housing and Urban Development shall 
submit a report to the Congress, not later than September 30, 2004, 
setting forth the results of the study conducted pursuant to subsection 
(a).

SEC. 909. CORRECTION OF INEQUITIES IN THE SECOND ROUND OF EMPOWERMENT 
              ZONES.

    (a) Grant Authority.--There are authorized to be appropriated to 
the Secretary of Housing and Urban Development such sums as may be 
necessary to make grant awards to each of 15 urban empowerment zones 
designated pursuant to section 1391(g) of the Internal Revenue Code of 
1986, taking into account any amount made available pursuant to any 
prior appropriation made for such zones.
    (b) Authority To Use Funds To Implement Strategic Plan.--Funds 
appropriated under Federal law for an empowerment zone referred to in 
subsection (a) may be used to implement the strategic plan for the 
zone, including--
            (1) economic development;
            (2) infrastructure development;
            (3) workforce development; and
            (4) community development activities.
    (c) Authority To Use Funds To Pay Non-Federal Share of Matching 
Grants.--Funds appropriated under any Federal law for an empowerment 
zone referred to in subsection (a) may be used to pay the non-Federal 
share required in connection with another Federal grant-in-aid program 
undertaken as part of activities assisted under this section.

SEC. 910. EMPLOYMENT OPPORTUNITIES IN PUBLIC AND INDIAN HOUSING 
              AGENCIES.

    Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) is amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g) and (h), respectively;
            (2) in subsection (f), as so redesignated, by inserting 
        after paragraph (2) the following new paragraph:
            ``(3) One-stop delivery system.--The term `one-stop 
        delivery system' has the meaning given that term in section 
        134(c) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2864(c)).''; and
            (3) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Requirement for Hiring of New Employees.--
            ``(1) Thirty percent requirement.--It shall be a condition 
        of any contract awarded by a public or Indian housing agency 
        for work to be performed in connection with development 
        assistance provided from the Capital Fund under section 9(d) of 
        the United States Housing Act of 1937, or from the Operating 
        Fund under section 9(e) of such Act, that, except as provided 
        in paragraph 2(B), a minimum of 30 percent of all new employees 
        hired by a contractor for work in connection with such contract 
        will be low- or very low-income persons.
            ``(2) Compliance.--As a condition of any contract awarded 
        for the work described in paragraph (1), any contractor awarded 
        such a contract shall--
                    ``(A)(i) immediately before beginning work under 
                such contract, submit evidence to the satisfaction of 
                the public or Indian housing agency showing that a 
                minimum of 30 percent of all new employees hired for 
                work in connection with such contract are low- or very 
                low-income persons; and
                    ``(ii) submit evidence to the satisfaction of the 
                public or Indian housing agency showing that a minimum 
                of 30 percent of all subsequently hired new employees 
                hired for work in connection with such contract are 
                low- or very low-income persons; or
                    ``(B) if such contractor cannot meet the 
                requirement imposed by paragraph (1)--
                            ``(i) submit evidence to the satisfaction 
                        of the public or Indian housing agency showing 
                        that such contractor has given notice of such 
                        contract to the one-stop delivery system for 
                        the area which the housing subject to the 
                        contract is located, including the particular 
                        skills and qualifications needed by potential 
                        new employees for work under such contract; and
                            ``(ii) provide to the public or Indian 
                        housing agency evidence, as the Secretary shall 
                        by regulation require, sufficient to show that 
                        no newly hired employees who are not low- or 
                        very low-income persons are performing work in 
                        place of skilled low- or very low-income 
                        persons who were provided by either the public 
                        or Indian housing agency or by the one-stop 
                        delivery system.
            ``(3) Training.--Any contractor awarded a contract for the 
        work described in paragraph (1) may not provide on-the-job 
        training to any new employee for work under such contract 
        unless such new employee is a low- or very low-income 
        person.''.

SEC. 911. ASSISTANCE FOR NONPROFIT PURCHASERS PRESERVING AFFORDABLE 
              HOUSING.

    (a) Grants.--The Secretary of Housing and Urban Development may 
make grants, to the extent amounts are made available for such grants, 
to eligible entities under subsection (b) for use only for operational, 
working capital, and organizational expenses of such entities and 
activities by such entities to acquire eligible affordable housing for 
the purpose of ensuring that the housing will remain affordable, as the 
Secretary considers appropriate, for low-income or very low-income 
families (including elderly persons).
    (b) Eligible Entities.--The Secretary shall establish standards for 
entities to be considered eligible entities for purposes of this 
section, which shall include requirements that an entity shall--
            (1) be a nonprofit organization (as such term is defined in 
        section 104 of the Cranston-Gonzalez National Affordable 
        Housing Act) that has a regional or national focus and has been 
        in existence at least 3 years;
            (2) have among its purposes maintaining the affordability 
        to low-income or very low-income families of multifamily 
        properties that are at risk of loss from the inventory of 
        housing that is affordable to low-income or very low-income 
        families;
            (3) demonstrate need for assistance under this section for 
        the purposes under subsection (a), experience in carrying out 
        activities referred to in such subsection, and capability to 
        carry out such activities; and
            (4) demonstrate financial resources, financial capability, 
        and organizational outreach to make best use of scarce Federal 
        resources by--
                    (A) levering effectively any funding under this 
                section with private-sector capital; and
                    (B) working in effective cooperation with other 
                similar organizations.
    (c) Definitions.--For purposes of this section:
            (1) Eligible affordable housing.--The term ``eligible 
        affordable housing'' means housing that--
                    (A) consists of more than 4 dwelling units;
                    (B) serves exclusively or predominantly a tenancy 
                of low-income families or very low-income families, or 
                is insured or assisted under a program of the 
                Department of Housing and Urban Development, the 
                Department of Agriculture, or applicable State housing 
                finance agency programs under which the property is 
                subject to limitations on tenant rents, rent 
                contributions, or incomes; and
                    (C) is at risk, as determined by the Secretary, of 
                having loss of affordability because of  market rate 
conversion, deterioration, or demolition.
            (2) Low-income families; very low-income families.--The 
        terms ``low-income families'' and ``very low-income families'' 
        have the meanings given such terms in section 3(b) of the 
        United States Housing Act of 1937.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for grants under this 
section.

SEC. 912. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

    (a) Eligible Activities.--Section 105(a) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)), as amended by 
the preceding provisions of this Act, is further amended by adding at 
the end the following new paragraph:
            ``(27) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees (including 
        policemen, firemen, and sanitation and other maintenance 
        workers) of, and teachers who are employees of, the 
        metropolitan city or urban county (or an agency or school 
        district serving such city or county) receiving grant amounts 
        under this title pursuant to section 106(b) or the unit of 
        general local government (or an agency or school district 
        serving such unit) receiving such grant amounts pursuant to 
        section 106(d), except that--
                    ``(A) such assistance may only be provided on 
                behalf of such employees who are first-time homebuyers 
                under the meaning given such term in section 104(14) of 
                the Cranston-Gonzalez National Affordable Housing Act 
                (42 U.S.C. 12704(14)), except that, for purposes of 
                this paragraph, such section shall be applied by 
                substituting `section 105(a)(27) of the Housing and 
                Community Development Act of 1974' for `title II';
                    ``(B) notwithstanding section 102(a)(20)(B) or any 
                other provision of this title, such assistance may be 
                provided on behalf of such employees whose family 
                incomes do not exceed--
                            ``(i) 115 percent of the median income of 
                        the area involved, as determined by the 
                        Secretary with adjustments for smaller and 
                        larger families; or
                            ``(ii) with respect only to areas that the 
                        Secretary determines have high housing costs, 
                        taking into consideration median house prices 
                        and median family incomes for the area, 150 
                        percent of the median income of the area 
                        involved, as determined by the Secretary with 
                        adjustments for smaller and larger families;
                    ``(C) such assistance shall be used only for 
                acquiring principal residences for such employees, in a 
                manner that involves obligating amounts with respect to 
                any particular mortgage over a period of 1 year or 
                less, by--
                            ``(i) providing amounts for downpayments on 
                        mortgages;
                            ``(ii) paying reasonable closing costs 
                        normally associated with the purchase of a 
                        residence;
                            ``(iii) obtaining pre- or post-purchase 
                        counseling relating to the financial and other 
                        obligations of homeownership; or
                            ``(iv) subsidizing mortgage interest rates; 
                        and
                    ``(D) any residence purchased using assistance 
                provided under this paragraph shall be subject to 
                restrictions on resale that are--
                            ``(i) established by the metropolitan city, 
                        urban county, or unit of general local 
                        government providing such assistance; and
                            ``(ii) determined by the Secretary to be 
                        appropriate to comply with subparagraphs (A) 
                        and (B) of section 215(b)(3) of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for purposes 
                        of this paragraph, such subparagraphs shall be 
                        applied by substituting `section 105(a)(27) of 
                        the Housing and Community Development Act of 
                        1974' for `this title';''.
    (b) Primary Objectives.--Section 105(c) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(c)) is amended by 
adding at the end the following new paragraph:
    ``(5) Homeownership Assistance for Municipal Employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(27) of this section shall be 
considered, for purposes of this title, to benefit persons of low and 
moderate income and to be directed toward the objective under section 
101(c)(3).''.

SEC. 913. SENSE OF CONGRESS REGARDING HUD OFFICE OF DISABILITY POLICY.

    (a) Congressional Findings.--The Congress finds that--
            (1) 54,000,000 Americans have disabilities;
            (2) 1,300,000 disabled Americans have worst-case housing 
        needs;
            (3) people with disabilities and their families face unique 
        challenges in securing adequate housing;
            (4) it is the policy of the United States, as enshrined in 
        the Fair Housing Act, the Rehabilitation Act of 1973 and the 
        Americans With Disabilities Act of 1990, and other Federal 
        laws, that the disabled have the same rights to housing as 
        other Americans;
            (5) people with disabilities represent an important 
        constituency of the Department of Housing and Urban Development 
        and rely heavily on many of the Department's programs for their 
        housing needs;
            (6) people with disabilities need a single, one-stop source 
        for help with their housing needs;
            (7) people with disabilities need an advocate within HUD;
            (8) HUD has designated a Deputy Assistant Secretary for 
        Special Needs whose responsibilities includes many populations 
        with housing challenges, but people with disabilities are not 
        specifically cited as among those responsibilities;
            (9) HUD has, in the past, established special resource 
        offices, such as the Veteran Resource Center (HUDVET), to 
        provide information on HUD's community-based programs and 
        services to specific HUD constituents and their families;
            (10) people with disabilities are overlooked in much of 
        HUD's administrative structure and ought to receive as much 
        attention from the Federal Government's housing agency as other 
        groups with critical housing needs; and
            (11) HUD currently has an Office of Disability Policy, but 
        there has not been a Director of that Office since January 
        2001.
    (b) Sense of Congress.--It is the sense of the Congress that the 
Secretary of Housing and Urban Development should--
            (1) immediately appoint a permanent Director of the Office 
        of Disability Policy;
            (2) examine the role of the Department's Office of 
        Disability Policy, its relationship to the Office of Special 
        Needs, and whether and what changes might be made to increase 
        attention to people with disabilities within the Department's 
        programs and policies; and
            (3) establish a resource center for people with 
        disabilities and their families within the Office of Disability 
        Policy to serve as a portal into the Department's community-
        based programs and services.

SEC. 914. TRANSFER OF RURAL MULTIFAMILY RENTAL HOUSING PROJECTS TO 
              NONPROFITS AND LOCAL HOUSING AUTHORITIES.

    Section 515(h) of the Housing Act of 1949 (42 U.S.C. 1485(h)) is 
amended--
            (1) by striking ``(h) Project Transfers.--After'' and 
        inserting the following:
    ``(h) Project Transfers.--
            ``(1) Limitation.--After''; and
            (2) by inserting at the end the following new paragraph:
            ``(2) Transfer and renovation of existing projects.--
                    ``(A) Transfer.--In carrying out this Act, the 
                Secretary should encourage the transfer of ownership or 
                control of projects for which a loan is made or insured 
                under this section to nonprofit organizations and local 
                housing authorities (including public housing 
                agencies).
                    ``(B) Renovation.--In carrying out this Act, the 
                Secretary should encourage, and give priority in 
                funding, to the renovation of existing projects for 
                which a loan is made or insured under this section, 
                subsequent to transfer of such projects to nonprofit 
                organizations and housing authorities.''.

SEC. 915. SENSE OF CONGRESS REGARDING CONSUMER PROTECTION AND HOME 
              WARRANTIES.

    (a) Congressional Findings.--The Congress finds that--
            (1) 30,000 newly constructed homes were insured under the 
        National Housing Act in 2000 and a majority of those homes were 
        purchased by first-time low- and moderate-income homebuyers;
            (2) approximately 90 percent of those homes are now 
        protected by private sector insurance-backed warranties against 
        structural damage for ten years, and an estimated 77 percent of 
        structural damage takes place when a home is four years or 
        older, with an average cost of $30,000 per incident of major 
        structural damage;
            (3) Mortgagee Letter 2001-27, issued by the Department of 
        Housing and Urban Development in October 2001 will have the 
        effect of discouraging the use of ten-year insurance-backed 
        warranties, leaving homeowners with a one-year builder warranty 
        to protect the value of the home; and
            (4) major structural damage to a home will lead to 
        homeowner defaults and, for homes with mortgages insured under 
        the National Housing Act, the Secretary of Housing and Urban 
        Development is liable for 100 percent of the unpaid balance of 
        a mortgage when a homeowner defaults.
    (b) Sense of Congress.--It is the sense of the Congress that the 
Secretary of Housing and Urban Development should implement a program 
to provide incentives to homebuilders to offer ten-year insurance-
backed private sector warranties for newly constructed homes purchased 
with mortgages insured under the National Housing Act.

SEC. 916. DEMONSTRATION PROGRAM FOR AFFORDABLE HOUSING DATABASE.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a demonstration program to allow the development and 
creation of an electronic or otherwise readily available database that 
provides agencies, municipalities, and the general public access to 
information about available affordable housing and programs that 
pertain to the affordable housing continuum. The database shall include 
regularly updated lists of rental units that accept rental assistance 
vouchers under the program under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f) and shall contain information about the 
location of the rental units, the number of units of each bedroom size, 
and the accessibility of the units to public transportation.
    (b) Selection.--The Secretary of Housing and Urban Development 
shall establish the criteria for participation in the demonstration 
program under this section and, during the period consisting of fiscal 
years 2003 through 2004 shall, to the extent amounts are made available 
under subsection (d), select not more than three applicants for 
participation in this program.
    (c) Report.--Not later than February 1, 2005, the Secretary of 
Housing and Urban Development shall submit a report to the Congress 
describing the results of the demonstration program under this section, 
analyzing the effectiveness of the program, and including 
recommendations, if any, for continuation or replication.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the demonstration 
program under this section.

SEC. 917. HUD STUDY REGARDING MAIN STREET PARTNERSHIP.

    (a) In General.--The Secretary of Housing and Urban Development 
shall conduct a study to determine--
            (1) the feasibility and effectiveness of establishing a 
        Federal Main Street Partnership Fund to make grants to local 
        communities to assist in making fast-track changes to zoning 
        and planning regulations that may inhibit the revitalization of 
        downtown commercial areas for mixed-use affordable housing as 
        well as commercial uses;
            (2) the extent to which local zoning and planning 
        regulations inhibit the ability of developers to create 
        affordable housing in traditional Main Street commercial 
        districts where commercially zoned buildings have vacant and 
        serviceable housing which cannot be used for housing due to 
        such zoning;
            (3) whether fast-tracking zoning modifications and other 
        related incentives would reduce the costs of redeveloping 
        commercial buildings in traditional Main Street commercial 
        districts for mixed-use affordable housing as well as 
        commercial and retail uses; and
            (4) what eligible planning activities should receive 
        funding under such a Federal Main Street Partnership Fund, such 
        as salary of staff involved in fast-track re-zoning and 
        surveying and mapping involved in the rezoning.
    (b) Working Group.--In conducting the study, the Secretary shall 
convene a working group and shall solicit views and recommendations 
from the members of the group. The group shall include representatives 
of local governments of varying sizes in various regions, developers, 
realtors, mortgage bankers, community bankers, local non-profit  
business membership organizations, such as Chambers of Commerce, 
community-based affordable housing advocacy organizations, and such 
other parties as the Secretary considers appropriate.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit a report regarding 
the findings of the study, which shall include recommendations 
regarding the establishment of a Federal Main Street Partnership Fund, 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate.

SEC. 918. CONTRACTUAL COMMITMENTS FOR RURAL MULTIFAMILY RENTAL HOUSING.

    (a) Prepayment.--Notwithstanding any other provision of law and 
subject only to subsection (d) of this section, an owner of eligible 
low-income rural housing may prepay the loan on such housing made or 
insured under section 514 or 515 of the Housing Act of 1949 without 
restrictions at any time after the later of--
            (1) 20 years from the date on which the loan was made; and
            (2) the date until which the owner has agreed with the 
        Secretary of Agriculture, or the Secretary's delegee, to 
        maintain the low-income use of the housing.
    (b) Eligible Low-Income Rural Housing.--For purposes of this 
section, the term ``eligible low-income rural housing'' means housing 
that is financed by a loan made or insured under section 514 or 515 of 
the Housing Act of 1949 (42 U.S.C. 1484, 1485) pursuant to a contract 
entered into prior to December 15, 1989.
    (c) Tenant Protection.--
            (1) Provision of enhanced voucher assistance.--To the 
        extent that amounts for assistance pursuant to this subsection 
        are provided in advance in appropriation Acts, upon the 
        prepayment of a loan pursuant to this section, enhanced voucher 
        assistance under section 8(t) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f(t)) shall be made available on behalf 
        of each low-income family who is residing in the project on the 
        date the loan is prepaid.
            (2) Ensuring ability to use enhanced voucher assistance.--
        Each low-income family residing in the project on the date the 
        loan is prepaid may elect to remain in the same project, 
        subject to the terms of the lease for rental of the dwelling 
        unit, and may use such enhanced voucher assistance for lease of 
        such dwelling unit. The owner of the project may not refuse to 
        accept enhanced voucher assistance made available on behalf of 
        any such low-income family for lease of such a dwelling unit or 
        to enter into a housing assistance payments contract for such a 
        unit.
    (d) Tenant Protection and Notice Requirements.--An owner of 
eligible low-income rural housing may not, pursuant to subsection (a), 
prepay the loan on such housing made or insured under section 514 or 
515 of the Housing Act of 1949 unless--
            (1) amounts are provided in advance in appropriation Acts, 
        and are obligated, for assistance pursuant to subsection (c) of 
        this section on behalf of each low-income family who is 
        residing in the project on the date that the loan is prepaid; 
        and
            (2) not less than 150 days before such prepayment, the 
        owner of the project provides written notice of intent to 
        prepay, in such form as the Secretary of Agriculture shall 
        prescribe, to each tenant of the housing, the Secretary of 
        Agriculture, the Secretary of Housing and Urban Development, 
        and the chief executive officer of the appropriate State or 
        local government for the jurisdiction within which the housing 
        is located.
    (e) Conforming Amendment.--Section 8(t)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(t)(2)) is amended--
            (1) by inserting ``or loan'' after ``the prepayment of the 
        mortgage''; and
            (2) by inserting ``section 914 of the Housing Affordability 
        for America Act of 2002,'' after ``(12 U.S.C. 4113(f)),''.




                                                 Union Calendar No. 404

107th CONGRESS

  2d Session

                               H. R. 3995

                  [Report No. 107-640, Parts I and II]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 17, 2002

 Reported from the Committee on Financial Services with an amendment; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed