[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 811 Enrolled Bill (ENR)]
S.811
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To support certain housing proposals in the fiscal year 2003 budget for
the Federal Government, including the downpayment assistance initiative
under the HOME Investment Partnership Act, 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. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I--DOWNPAYMENT ASSISTANCE
Sec. 101. Short title.
Sec. 102. Downpayment assistance initiative.
TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Demonstration program for elderly housing for
intergenerational families.
Sec. 204. Training for HUD personnel regarding grandparent-headed and
relative-headed families issues.
Sec. 205. Study of housing needs of grandparent-headed and relative-
headed families.
TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT
ADJUSTMENTS
Sec. 301. Hybrid arms.
Sec. 302. FHA multifamily loan limit adjustments.
TITLE IV--HOPE VI PROGRAM REAUTHORIZATION
Sec. 401. Short title.
Sec. 402. Hope VI program reauthorization.
Sec. 403. Hope VI grants for assisting affordable housing through main
street projects.
TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS
Sec. 501. Funding for insular areas.
TITLE I--DOWNPAYMENT ASSISTANCE
SEC. 101. SHORT TITLE.
This title may be cited as the ``American Dream Downpayment Act''.
SEC. 102. 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) Definitions.--In this section:
``(1) Downpayment assistance.--The term ``downpayment
assistance'' means assistance to help a family acquire a principal
residence.
``(2) Home repairs.--The term ``home repairs'' means capital
improvements or repairs that--
``(A) are identified in an appraisal or home inspection
completed in conjunction with a home purchase; or
``(B) are completed within 1 year of the purchase of a
home, and are necessary to bring the housing into compliance
with health and safety housing codes of the unit of general
local government in which the housing is located, including the
remediation of lead paint or other home health hazards.
``(3) Participating jurisdiction.--The term ``participating
jurisdiction'' means a State or unit of general local government
designated under section 216.
``(4) State.--The term ``State'' means any State of the United
States and the District of Columbia.
``(b) Grant Authority.--The Secretary may award grants to
participating jurisdictions to assist low-income families to achieve
homeownership, in accordance with this section.
``(c) Eligible Activities.--
``(1) In general.--
``(A) Downpayment assistance.--Subject to subparagraph (B),
grants awarded under this section may be used only for
downpayment assistance toward the purchase of single family
housing (including 1 to 4 unit family dwelling units,
condominium units, cooperative units, and manufactured housing
units which are located on land which is owned by the
manufactured housing unit owner, owned as a cooperative, or is
subject to a leasehold interest with a term equal to at least
the term of the mortgage financing on the unit, and
manufactured housing lots) by low-income families who are
first-time home-buyers.
``(B) Home repairs.--Not more than 20 percent of the grant
funds provided under subsection (d) to a participating
jurisdiction may be used to provide assistance to low-income,
first-time home-buyers for home repairs.
``(2) Limitations.--
``(A) Amount of assistance.--The amount of assistance
provided to any low-income families under paragraph (1) shall
not exceed the greater of--
``(i) 6 percent of the purchase price of a single
family housing unit; or
``(ii) $10,000.
``(B) Participation.--A participating jurisdiction may not
use any amount of a grant awarded under this section to provide
funding to an entity or organization that provides downpayment
assistance if the activities of that entity or organization are
financed in whole or in part, directly or indirectly, by
contributions, service fees, or other payments from the sellers
of housing.
``(d) Formula Allocation.--
``(1) In general.--For each fiscal year, the Secretary shall
allocate any amounts made available for assistance under this
section to each State that is a participating jurisdiction in an
amount equal to a percentage of the total allocation that is equal
to the percentage of the national total of low-income households
residing in rental housing in the State, as determined on the basis
of the most recent census data compiled by the Bureau of the
Census.
``(2) Participating jurisdictions other than states.--
``(A) In general.--Subject to subparagraph (B), for each
fiscal year, of the amount allocated to each State under
paragraph (1), the Secretary shall further allocate from such
amount to each participating jurisdiction located within such
State an amount equal to the percentage of the allocation made
to the State under paragraph (1) that is equal to the
percentage of the State-wide total of low-income households
residing in rental housing in such participating jurisdiction,
as determined on the basis of the most recent census data
compiled by the Bureau of the Census.
``(B) Limitation.--
``(i) In general.--Direct allocations made under
subparagraph (A) shall be made to a local participating
jurisdiction only if--
``(I) the participating jurisdiction has a total
population of 150,000 individuals or more, as
determined on the basis of the most recent census data
compiled by the Bureau of the Census; or
``(II) the participating jurisdiction would receive
an allocation of $50,000 or more.
``(ii) Reversion.--Any allocation that would have
otherwise been made to a participating jurisdiction that
does not meet the requirements of clause (i) shall revert
back to the State in which the participating jurisdiction
is located.
``(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 subsection (d).
``(f) Applicability of Other Provisions.--
``(1) In general.--Except as otherwise provided in this
section, grants made 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 made 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) Housing Strategy.--To be eligible to receive a grant under
this section in any fiscal year, a participating jurisdiction shall
include in its comprehensive housing affordability strategy developed
under section 105 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705) for such fiscal year--
``(1) a description of the anticipated use of any grant
received under this section;
``(2) a plan for conducting targeted outreach to residents and
tenants of public housing, trailer parks, and manufactured housing,
and to other families assisted by public housing agencies, for the
purpose of ensuring that grant amounts provided under this section
to a participating jurisdiction are used for downpayment assistance
for such residents, tenants, and families; and
``(3) a description of the actions to be taken to ensure the
suitability of families receiving downpayment assistance under this
section to undertake and maintain homeownership.
``(h) Report.--Not later than June 30, 2006, the Comptroller
General of the United States shall submit a report containing a State-
by-State analysis of the impact of grants awarded under this section
to--
``(1) the Committee on Banking, Housing, and Urban Affairs of
the Senate; and
``(2) the Committee on Financial Services of the House of
Representatives.
``(i) Sunset.--The Secretary shall have no authority to make grants
under this Act after December 31, 2007.
``(j) Relocation Assistance and Downpayment Assistance.--The
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (84 Stat. 1894) shall not apply to downpayment assistance
under this section.
``(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $200,000,000 for each of fiscal
years 2004 through 2007.''.
TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE
SEC. 201. SHORT TITLE.
This title may be cited as the ``Living Equitably: Grandparents
Aiding Children and Youth Act of 2003'' or the ``LEGACY Act of 2003''.
SEC. 202. DEFINITIONS.
In this title:
(1) Child.--The term ``child'' means an individual who--
(A) is not attending school and is not more than 18 years
of age; or
(B) is attending school and is not more than 19 years of
age.
(2) Covered family.--The term ``covered family'' means a family
that--
(A) includes a child; and
(B) 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.
(3) Elderly person.--The term ``elderly person'' has the same
meaning as in section 202(k) of the Housing Act of 1959 (12 U.S.C.
1701q(k)).
(4) Grandparent.--
(A) In general.--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.
(B) Case of adoption.--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.
(5) Intergenerational dwelling unit.--The term
``intergenerational dwelling unit'' means a qualified dwelling unit
that is reserved for occupancy only by an intergenerational family.
(6) Intergenerational family.--The term ``intergenerational
family'' means a covered family that has a head of household who is
an elderly person.
(7) Private nonprofit organization.--The term ``private
nonprofit organization'' has the same meaning as in section 202(k)
of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
(8) Qualified dwelling unit.--The term ``qualified dwelling
unit'' means a dwelling unit that--
(A) has not fewer than 2 separate bedrooms;
(B) is equipped with design features appropriate to meet
the special physical needs of elderly persons, as needed; and
(C) is equipped with design features appropriate to meet
the special physical needs of young children, as needed.
(9) Raising a child.--The term ``raising a child'' means, with
respect to an individual, that the individual--
(A) resides with the child; and
(B) 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.
(10) Relative.--
(A) In general.--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.
(B) Case of adoption.--In the case of a child who was
adopted, the term ``relative'' includes an individual who, by
blood or marriage, is a relative of the family who adopted the
child.
(11) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
SEC. 203. DEMONSTRATION PROGRAM FOR ELDERLY HOUSING FOR
INTERGENERATIONAL FAMILIES.
(a) Demonstration Program.--The Secretary shall carry out a
demonstration program (referred to in this section as the
``demonstration program'') to provide assistance for 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.--The Secretary shall provide
assistance under this section only to private nonprofit organizations
selected under subsection (d) 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 section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q);
(2) through development of buildings or projects comprised
solely of intergenerational dwelling units; or
(3) through the development of an annex or addition to an
existing project assisted under section 202 of the Housing Act of
1959 (12 U.S.C. 1701q), that 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 that section 202 or
any provision of that section restricting occupancy to elderly
persons, any intergenerational dwelling unit assisted under the
demonstration program may be occupied by an intergenerational
family;
(2) subsections (e) and (f) of that section 202 shall not
apply;
(3) in addition to the requirements under subsection (g) of
that section 202, the Secretary shall--
(A) ensure that occupants of intergenerational dwelling
units assisted under the demonstration program are provided a
range of services that are tailored to meet the needs of
elderly persons, children, and intergenerational families; and
(B) 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
that section 202 necessary to provide for assistance under the
demonstration program.
(d) Selection.--The Secretary shall--
(1) establish application procedures for private nonprofit
organizations to apply for assistance under this section; and
(2) to the extent that amounts are made available pursuant to
subsection (f), select not less than 2 and not more than 4 projects
that are assisted under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q) for assistance under this section, based on the
ability of the applicant to develop and operate intergenerational
dwelling units and national geographical diversity among those
projects funded.
(e) Report.--Not later than 36 months after the date of enactment
of this Act, the Secretary shall submit a report to Congress that--
(1) describes the demonstration program; and
(2) analyzes the effectiveness of the demonstration program.
(f) Authorization of Appropriations.--There are authorized to be
appropriated $10,000,000 to carry out this section.
(g) Sunset.--The demonstration program carried out under this
section shall terminate 5 years after the date of enactment of this
Act.
SEC. 204. TRAINING FOR HUD PERSONNEL REGARDING GRANDPARENT-HEADED
AND RELATIVE-HEADED FAMILIES ISSUES.
Section 7 of the Department of Housing and Urban Development Act
(42 U.S.C. 3535) is amended by adding at the end the following:
``(t) Training Regarding Issues Relating to Grandparent-Headed and
Relative-Headed Families.--The Secretary shall ensure that all
personnel employed in field offices of the Department who have
responsibilities for administering the housing assistance program under
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) or
the supportive housing program under section 202 of the Housing Act of
1959 (12 U.S.C. 1701q), and an appropriate number of personnel in the
headquarters office of the Department who have responsibilities for
those programs, have received adequate training regarding how covered
families (as that term is defined in section 202 of the LEGACY Act of
2003) can be served by existing affordable housing programs.''.
SEC. 205. STUDY OF HOUSING NEEDS OF GRANDPARENT-HEADED AND
RELATIVE-HEADED FAMILIES.
(a) In General.--The Secretary and the Director of the Bureau of
the Census jointly shall--
(1) conduct a study to determine an estimate of the number of
covered families in the United States and their affordable housing
needs; and
(2) submit a report to Congress regarding the results of the
study conducted under paragraph (1).
(b) Report and Recommendations.--The report required under
subsection (a) shall--
(1) be submitted to Congress not later than 12 months after the
date of enactment of this Act; and
(2) include recommendations by the Secretary and the Director
of the Bureau of the Census regarding how the major assisted
housing programs of the Department of Housing and Urban
Development, including the supportive housing for the elderly
program under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q) can be used and, if appropriate, amended or altered, to meet
the affordable housing needs of covered families.
TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT
ADJUSTMENTS
SEC. 301. HYBRID ARMS.
(a) In General.--Section 251(d)(1)(C) of the National Housing Act
(12 U.S.C. 1715z-16(d)(1)(C)) is amended by striking ``five'' and
inserting ``3''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to mortgages executed on or after the date of the enactment of
this title.
SEC. 302. FHA MULTIFAMILY LOAN LIMIT ADJUSTMENTS.
(a) Short Title.--This section may be cited as the ``FHA
Multifamily Loan Limit Adjustment Act of 2003''.
(b) Maximum Mortgage Amount Limit for Multifamily Housing in High-
Cost Areas.--Sections 207(c)(3), 213(b)(2)(B)(i),
220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II),
231(c)(2)(B), and 234(e)(3)(B) of the National Housing Act (12 U.S.C.
1713(c)(3), 1715e(b)(2)(B)(i), 1715k(d)(3)(B)(iii)(II),
1715l(d)(3)(ii)(III), 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and
1715y(e)(3)(B)) are each amended--
(1) by striking ``110 percent'' and inserting ``140 percent'';
and
(2) by inserting ``, or 170 percent in high cost areas,'' after
``140 percent''.
(c) Catch-up Adjustments to Certain Maximum Mortgage Amount
Limits.--
(1) Section 207 limits.--Section 207(c)(3)(A) of the National
Housing Act (12 U.S.C. 1713(c)(3)(A)) is amended by striking
``$11,250'' and inserting ``$17,460''.
(2) Section 213 limits.--Section 213(b)(2)(A) of the National
Housing Act (12 U.S.C. 1715e(b)(2)(A)) is amended--
(A) by striking ``$38,025'' and inserting ``$41,207'';
(B) by striking ``$42,120'' and inserting ``$47,511'';
(C) by striking ``$50,310'' and inserting ``$57,300'';
(D) by striking ``$62,010'' and inserting ``$73,343'';
(E) by striking ``$70,200'' and inserting ``$81,708'';
(F) by striking ``$49,140'' and inserting ``$49,710'';
(G) by striking ``$60,255'' and inserting ``$60,446'';
(H) by striking ``$75,465'' and inserting ``$78,197''; and
(I) by striking ``$85,328'' and inserting ``$85,836''.
(d) Rehabilitation and Neighborhood Conservation Housing Mortgage
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12
U.S.C. 1715k(d)(3)(B)(iii)) is amended--
(1) by striking ``with respect to dollar amount limitations
applicable to rehabilitation projects described in subclause
(II),'' and inserting ``; (III)''; and
(2) by redesignating subclauses (III) and (IV) as subclauses
(IV) and (V), respectively.
TITLE IV--HOPE VI PROGRAM REAUTHORIZATION
SEC. 401. SHORT TITLE.
This title may be cited as the ``HOPE VI Program Reauthorization
and Small Community Mainstreet Rejuvenation and Housing Act of 2003''.
SEC. 402. HOPE VI PROGRAM REAUTHORIZATION.
(a) 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)--
(A) by inserting ``and ongoing implementation'' after
``development''; and
(B) by inserting ``, except that the Secretary may not
award a grant under this section unless the applicant has
involved affected public housing residents at the beginning and
during the planning process for the revitalization program,
prior to submission of an application'' before the semicolon at
the end;
(4) in subparagraph (H), by striking ``and'' at the end;
(5) by redesignating subparagraph (I) as subparagraph (L); and
(6) by inserting after subparagraph (H) the following:
``(I) the extent to which the plan minimizes permanent
displacement of current residents of the public housing site
who wish to remain in or return to the revitalized community
and provides for community and supportive services to residents
prior to any relocation;
``(J) the extent to which the plan sustains or creates more
project-based housing units available to persons eligible for
public housing in markets where the plan shows there is demand
for the maintenance or creation of such units;
``(K) the extent to which the plan gives to existing
residents priority for occupancy in dwelling units which are
public housing dwelling units, or for residents who can afford
to live in other units, priority for those units in the
revitalized community; and''.
(b) Definition of Severely Distressed Public Housing.--Section
24(j)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C.
1437v(j)(2)(A)(iii)) is amended--
(1) in subclause (I), by striking ``or'' at the end;
(2) in subclause (II), by inserting ``or'' after the semicolon
at the end; and
(3) by inserting at the end the following:
``(III) is lacking in sufficient appropriate
transportation, supportive services, economic opportunity,
schools, civic and religious institutions, and public
services, resulting in severe social distress in the
project;''.
(c) Study of Elderly and Disabled Public Housing Needs.--Not later
than 18 months after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report to Congress
regarding the extent of severely distressed elderly and non-elderly
disabled public housing, and recommendations for improving that housing
through the HOPE VI program or other means, taking into account the
special needs of the residents.
(d) 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 by striking ``, 2001, and 2002'' and inserting ``through
2006''.
(e) 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, 2004'' and inserting ``September 30, 2006''.
SEC. 403. 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 (4) 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 a 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 considered 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 (E), (J), or (K) 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), and (h) (relating to
administration of grants by other entities), 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 to low-
income families, with a subset of units made available to
very- and extremely-low income families; 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 50,000 or fewer; and
``(ii)(I) is 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:
``(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:
``(3) Set-aside for main street housing grants.--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 V--COMMUNITY DEVELOPMENT BLOCK GRANTS
SEC. 501. FUNDING FOR INSULAR AREAS.
(a) Definition of Insular Areas.--Section 102(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)) is amended by
adding at the end the following:
``(24) The term `insular area' means each of Guam, the Northern
Mariana Islands, the Virgin Islands, and American Samoa.''.
(b) Definition of Unit of General Government.--The first sentence
of section 102(a)(1) of the Housing and Community Development Act of
1974 (42 U.S.C. 5302(a)(1)) is amended--
(1) by inserting ``and'' after ``Secretary;''; and
(2) by striking ``; and the Trust Territory of the Pacific
Islands''.
(c) Statement of Activities and Review.--Section 104 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5304) is amended--
(1) in subsection (a)(1)--
(A) in the first sentence--
(i) by striking ``or'' after ``State,''; and
(ii) by inserting ``or under section 106(a)(3) by any
insular area,'' after ``government,''; and
(B) in the second sentence--
(i) by striking ``and in the case of'' and inserting a
comma; and
(ii) by inserting ``and insular areas receiving grants
pursuant to section 106(a)(3),'' after ``106(d)(2)(B),'';
(2) in subsection (e)(1), by striking ``section 106(b) or
section 106(d)(2)(B)'' and inserting ``subsection (a)(3), (b), or
(d)(2)(B) of section 106''; and
(3) in subsection (m)--
(A) in paragraph (1), by inserting ``(a)(2),'' after
``under subsection''; and
(B) in paragraph (2), by striking ``government--'' and
inserting ``government other than an insular area--''.
(d) Allocation and Distribution of Funds.--Section 106(a) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5306(a)) is
amended--
(1) in the first sentence of paragraph (1)--
(A) by striking ``an appropriation Act'' and inserting
``appropriation Acts''; and
(B) by striking ``in any year'' and inserting ``for such
fiscal year'';
(2) in paragraph (2), by inserting ``under paragraph (1) and
after reserving such amounts for insular areas under paragraph
(2)'' after ``tribes'';
(3) in paragraph (3), by striking ``paragraphs (1) and (2)''
and inserting ``paragraphs (1), (2), and (3)'';
(4) by redesignating paragraphs (2) and (3) (as so amended) as
paragraphs (3) and (4); and
(5) by inserting after paragraph (1) the following:
``(2) For each fiscal year, of the amount approved in appropriation
Acts under section 103 for grants for such fiscal year (excluding the
amounts provided for use in accordance with section 107), the Secretary
shall reserve for grants to insular areas $7,000,000. The Secretary
shall provide for distribution of amounts under this paragraph to
insular areas on the basis of the ratio of the population of each
insular area to the population of all insular areas. In determining the
distribution of amounts to insular areas, the Secretary may also
include other statistical criteria as data become available from the
Bureau of the Census, but only if such criteria are contained in a
regulation promulgated by the Secretary after notice and public
comment.''.
(e) Conforming Amendment.--The first sentence of section 106(d)(1)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5306(d)(1)) is amended by striking ``paragraphs (1) and (2)'' and
inserting ``paragraphs (1), (2), and (3)''.
(f) Special Purpose Grants.--Section 107 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
(1) in subsection (a)(1)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) through (H) as
subparagraphs (A) through (G), respectively; and
(2) in subsection (b)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (7) as
paragraphs (1) through (6), respectively.
(g) Regulations.--The Secretary of Housing and Urban Development
shall issue regulations to carry out the amendments made by this
section, which shall take effect not later than the expiration of the
90-day period beginning on the date of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.