SECTIONS 205, 502, 517, 519, 555, 558, SUBTITLE F OF TITLE V, SECTIONS 581, 589, 599G, 599H, QUALITY HOUSING AND WORK RESPONSIBILITY ACT OF 1998
Public Law 105–276, as amended
SECTIONS 205, 502, 517, 519, 555, 558, SUBTITLE F OF TITLE V, SECTIONS 581, 589, 599G, 599H, QUALITY HOUSING AND WORK RESPONSIBILITY ACT OF 1998
276
106–377
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
GPO Statute Compilations USLM converter, version 20210527.1
2021-10-15
Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999
Quality Housing and Work Responsibility Act of 1998
10834
105
1998-10-21
SECTIONS 205, 502, 517, 519, 555, 558, SUBTITLE F OF TITLE V, SECTIONS 581, 589, 599G, 599H, QUALITY HOUSING AND WORK RESPONSIBILITY ACT OF 1998
[Public Law 105–276; 112 Stat 2520; 42 U.S.C. 1437 note]
[As Amended Through P.L. 106–377, Enacted October 27, 2000]
[Currency: This publication is a compilation of the text of Public Law 105–276. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]

community development block grants
42 U.S.C. 5305 note
For any fiscal year, of the amounts made available as emergency funds under the heading Community Development Block Grants Fund and notwithstanding any other provision of law, not more than $250,000 may be used for the non-Federal cost-share of any project funded by the Secretary of the Army through the Corps of Engineers.

Brownfields as Eligible CDBG Activity
205.
42 U.S.C. 5305 note
For fiscal years 1998, 1999, and all fiscal years thereafter, States and entitlement communities may use funds allocated under the community development block grants program under title I of the Housing and Community Development Act of 1974 for environmental cleanup and economic development activities related to Brownfields projects in conjunction with the appropriate environmental regulatory agencies, as if such activities were eligible under section 105(a) of such Act.
TITLE V—

PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM
* * * * * * *
SEC. 502.

FINDINGS AND PURPOSES.
(a)

Findings.—
Congress finds that—
(1)
there exists throughout the Nation a need for decent, safe, and affordable housing;
(2)
the inventory of public housing units owned, assisted, or operated by public housing agencies, an asset in which the Federal Government has invested over $90,000,000,000, has traditionally provided rental housing that is affordable to low-income persons;
(3)
despite serving this critical function, the public housing system is plagued by a series of problems, including the concentration of very poor people in very poor neighborhoods and disincentives for economic self-sufficiency;
(4)
the Federal method of overseeing every aspect of public housing by detailed and complex statutes and regulations has aggravated the problem and has placed excessive administrative burdens on public housing agencies; and
(5)
the interests of low-income persons, and the public interest, will best be served by a reformed public housing program that—
(A)
consolidates many public housing programs into programs for the operation and capital needs of public housing;
(B)
streamlines program requirements;
(C)
vests in public housing agencies that perform well the maximum feasible authority, discretion, and control with appropriate accountability to public housing residents, localities, and the general public; and
(D)
rewards employment and economic self-sufficiency of public housing residents.
(b)

Purposes.—
The purpose of this title1 is to promote homes that are affordable to low-income families in safe and healthy environments, and thereby contribute to the supply of affordable housing, by—
^1
Section 501(a) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999, provides that title V of such Act may be cited as the “Quality Housing and Work Responsibility Act of 1998”.
(1)
deregulating and decontrolling public housing agencies, thereby enabling them to perform as property and asset managers;
(2)
providing for more flexible use of Federal assistance to public housing agencies, allowing the authorities to leverage and combine assistance amounts with amounts obtained from other sources;
(3)
facilitating mixed income communities and decreasing concentrations of poverty in public housing;
(4)
increasing accountability and rewarding effective management of public housing agencies;
(5)
creating incentives and economic opportunities for residents of dwelling units assisted by public housing agencies to work, become self-sufficient, and transition out of public housing and federally assisted dwelling units;
(6)
consolidating the voucher and certificate programs for rental assistance under section 8 of the United States Housing Act of 1937 into a single market-driven program that will assist in making tenant-based rental assistance under such section more successful at helping low-income families obtain affordable housing and will increase housing choice for low-income families; and
(7)
remedying the problems of troubled public housing agencies and replacing or revitalizing severely distressed public housing projects.
SEC. 517.
[42 U.S.C. 1437 note]

MENTAL HEALTH ACTION PLAN.
The Secretary of Housing and Urban Development, in consultation with the Secretary of Health and Human Services, the Secretary of Labor, and appropriate State and local officials and representatives, shall—
(1)
develop an action plan and list of recommendations for the improvement of means of providing severe mental illness treatment to families and individuals receiving housing assistance under the United States Housing Act of 1937, including public housing residents, residents of multifamily housing assisted with project-based assistance under section 8 of such Act, and recipients of tenant-based assistance under such section; and
(2)
develop and disseminate a list of current practices among public housing agencies and owners of assisted housing that serve to benefit persons in need of mental health care.''.2
^2
So in law.
SEC. 519.

PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
* * * * * * *
(d)
[42 U.S.C. 1437a note]

Transitional Ceiling Rents.—
Notwithstanding section 3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437a(1)), during the period ending upon the later of the implementation of the formulas established pursuant to subsections (d)(2) and (e)(2) of such Act (as amended by this section) and October 1, 1999, a public housing agency may take any of the following actions with respect to public housing:
(1)

New provisions.—
An agency may—
(A)
adopt and apply ceiling rents that reflect the reasonable market value of the housing, but that are not less than—
(i)
for housing other than housing predominantly for elderly or disabled families (or both), 75 percent of the monthly cost to operate the housing of the agency;
(ii)
for housing predominantly for elderly or disabled families (or both), 100 percent of the monthly cost to operate the housing of the agency; and
(iii)
the monthly cost to make a deposit to a replacement reserve (in the sole discretion of the public housing agency); and
(B)
allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any family, the ceiling rent established under this paragraph would exceed the amount payable as rent by that family under paragraph (1).
(2)

Ceiling rents from balanced budget act, I.—
An agency may utilize the authority under section 3(a)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect immediately before the enactment of this Act3, notwithstanding any amendment to such section made by this Act.
^3
October 21, 1998.
(3)

Transitional ceiling rents for balanced budget act, I.—
An agency may utilize the authority with respect to ceiling rents under section 402(b)(2) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note), notwithstanding any other provision of law (including the expiration of the applicability of such section or the repeal of such section).
* * * * * * *
(g)

Effective Date.—
Subsections (d), (e), and (f) shall take effect upon the date of the enactment of this Act.
SEC. 555.

HOMEOWNERSHIP OPTION.
* * * * * * *
(b)
[42 U.S.C. 1437f note]

Demonstration Program.—
(1)

In general.—
With the consent of the affected public housing agencies, the Secretary may carry out (or contract with 1 or more entities to carry out) a demonstration program under section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 1437f(y)) to expand homeownership opportunities for low-income families.
(2)

Report.—
The Secretary shall report annually to Congress on activities conducted under this subsection.
(c)
[42 U.S.C. 1437f note]

Applicability.—
This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act.4
^4
October 21, 1998.
SEC. 558.

AUTHORIZATIONS OF APPROPRIATIONS.
(a)

In General.—
There is authorized to be appropriated for providing public housing agencies with tenant-based housing assistance under section 8 of the United States Housing Act of 1937—
(1)
to provide amounts for incremental assistance under such section 8—
(A)
for each of fiscal years 2000 and 2001, the amount necessary to assist 100,000 incremental dwelling units in each such fiscal year; and
(B)
for each of fiscal years 1999, 2002, and 2003, such sums as may be necessary; and
(2)
such sums as may be necessary for each of fiscal years 1999, 2000, 2001, 2002, and 2003, for—
(A)
relocation and replacement housing for units that are demolished and disposed of from the public housing inventory (in addition to other amounts that may be available for such purposes);
(B)
relocation of residents of properties that are owned by the Secretary and being disposed of or that are discontinuing section 8 project-based assistance;
(C)
the conversion of section 23 projects to assistance under section 8;
(D)
carrying out the family unification program;
(E)
relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency;
(F)
nonelderly disabled families affected by the designation of a public housing development under section 7 of the United States Housing Act of 1937, the establishment of preferences in accordance with section 651 of the Housing and Community Development Act of 1992, or the restriction of occupancy to elderly families in accordance with section 658 of such Act, and to the extent the Secretary determines that such amount is not needed to fund applications for such affected families, to other nonelderly disabled families;
(G)
housing vouchers for homeless individuals; and
(H)
housing vouchers to compensate public housing agencies which issue vouchers to families that move into or out of the jurisdiction of the agency under portability procedures.
(b)

Assistance for Disabled Families.—
(1)

Authorization of appropriations.—
There is authorized to be appropriated, for tenant-based assistance under section 8 of the United States Housing Act of 1937, to be used in accordance with paragraph (2), $50,000,000 for fiscal year 2000, and such sums as may be necessary for each subsequent fiscal year.
(2)

Use.—
The Secretary shall provide amounts made available under paragraph (1) to public housing agencies only for use to provide tenant-based assistance under section 8 of the United States Housing Act of 1937 for nonelderly disabled families (including such families relocating pursuant to designation of a public housing development under 7 of such Act or to the establishment of occupancy restrictions in accordance with section 658 of the Housing and Community Development Act of 1992, and other nonelderly disabled families who have applied to the agency for assistance under such section 8).
(3)

Allocation of amounts.—
The Secretary shall allocate and provide amounts made available under paragraph (1) to public housing agencies as the Secretary determines appropriate based on the relative levels of need among the authorities for assistance for families described in paragraph (1).
(c)

Effective Date.—
This section shall take effect on the date of the enactment of this Act.5
^5
October 21, 1998.
Subtitle F—

Safety and Security in Public and Assisted Housing
SEC. 575.

PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND SECTION 8 ASSISTANCE.
(a)

Drug-Related and Criminal Activity Under Public Housing Grievance Procedure.—
Section 6(k) of the United States Housing Act of 1937 (42 U.S.C. 1437d(k)) is amended, in the matter following paragraph (6)—
* * * * * * *
(b)

Termination of Tenancy in Public Housing.—
Section 6(l) of the United States Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended—
* * * * * * *
(c)

Availability of Criminal Records for Tenant Screening and Eviction.—
Section 6(q) of the United States Housing Act of 1937 (42 U.S.C. 1437d(q)(1)) is amended—
* * * * * * *
(d)

Authority To Require Access to Criminal Records.—
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:
* * * * * * *
(e)

Obtaining Information From Drug Abuse Treatment Facilities.—
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:
* * * * * * *
SEC. 576.
[42 U.S.C. 13661]

SCREENING OF APPLICANTS FOR FEDERALLY ASSISTED HOUSING.
(a)

Ineligibility Because of Eviction for Drug Crimes.—
Any tenant evicted from federally assisted housing by reason of drug-related criminal activity (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) shall not be eligible for federally assisted housing during the 3-year period beginning on the date of such eviction, unless the evicted tenant successfully completes a rehabilitation program approved by the public housing agency (which shall include a waiver of this subsection if the circumstances leading to eviction no longer exist).
(b)

Ineligibility of Illegal Drug Users and Alcohol Abusers.—
(1)

In general.—
Notwithstanding any other provision of law, a public housing agency or an owner of federally assisted housing, as determined by the Secretary, shall establish standards that prohibit admission to the program or admission to federally assisted housing for any household with a member—
(A)
who the public housing agency or owner determines is illegally using a controlled substance; or
(B)
with respect to whom the public housing agency or owner determines that it has reasonable cause to believe that such household member's illegal use (or pattern of illegal use) of a controlled substance, or abuse (or pattern of abuse) of alcohol, may interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents.
(2)

Consideration of rehabilitation.—
In determining whether, pursuant to paragraph (1)(B), to deny admission to the program or federally assisted housing to any household based on a pattern of illegal use of a controlled substance or a pattern of abuse of alcohol by a household member, a public housing agency or an owner may consider whether such household member—
(A)
has successfully completed a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable);
(B)
has otherwise been rehabilitated successfully and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable); or
(C)
is participating in a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable).
(c)

Authority To Deny Admission To Criminal Offenders..—
Except as provided in subsections (a) and (b) of this section and in addition to any other authority to screen applicants, in selecting among applicants for admission to the program or to federally assisted housing, if the public housing agency or owner of such housing (as applicable) determines that an applicant or any member of the applicant's household is or was, during a reasonable time preceding the date when the applicant household would otherwise be selected for admission, engaged in any drug-related or violent criminal activity or other criminal activity which would adversely affect the health, safety, or right to peaceful enjoyment of the premises by other residents, the owner, or public housing agency employees, the public housing agency or owner may—
(1)
deny such applicant admission to the program or to federally assisted housing; and
(2)
after the expiration of the reasonable period beginning upon such activity, require the applicant, as a condition of admission to the program or to federally assisted housing, to submit to the public housing agency or owner evidence sufficient (as the Secretary shall by regulation provide) to ensure that the individual or individuals in the applicant's household who engaged in criminal activity for which denial was made under paragraph (1) have not engaged in any criminal activity during such reasonable period.
(d)

Conforming Amendments.—
The United States Housing Act of 1937 is amended—
(1)
in section 6—
(A)
by striking subsection (r); and
(B)
by redesignating subsections (s), (t), and (u) (as added by the preceding provisions of this Act) as subsections (r), (s), and (t), respectively; and
(2)
in section 16 (42 U.S.C. 1437n), by striking subsection (e).
SEC. 577.
[42 U.S.C. 13662]

TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL DRUG USERS AND ALCOHOL ABUSERS IN FEDERALLY ASSISTED HOUSING.
(a)

In General.—
Notwithstanding any other provision of law, a public housing agency or an owner of federally assisted housing (as applicable), shall establish standards or lease provisions for continued assistance or occupancy in federally assisted housing that allow the agency or owner (as applicable) to terminate the tenancy or assistance for any household with a member—
(1)
who the public housing agency or owner determines is illegally using a controlled substance; or
(2)
whose illegal use (or pattern of illegal use) of a controlled substance, or whose abuse (or pattern of abuse) of alcohol, is determined by the public housing agency or owner to interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents.
(b)

Consideration of Rehabilitation.—
In determining whether, pursuant to subsection (a)(2), to terminate tenancy or assistance to any household based on a pattern of illegal use of a controlled substance or a pattern of abuse of alcohol by a household member, a public housing agency or an owner may consider whether such household member—
(1)
has successfully completed a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable);
(2)
has otherwise been rehabilitated successfully and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable); or
(3)
is participating in a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable).
SEC. 578.
[42 U.S.C. 13663]

INELIGIBILITY OF DANGEROUS SEX OFFENDERS FOR ADMISSION TO PUBLIC HOUSING.
(a)

In General.—
Notwithstanding any other provision of law, an owner of federally assisted housing shall prohibit admission to such housing for any household that includes any individual who is subject to a lifetime registration requirement under a State sex offender registration program.
(b)

Obtaining information.—
As provided in regulations issued by the Secretary to carry out this section—
(1)
a public housing agency shall carry out criminal history background checks on applicants for federally assisted housing and make further inquiry with State and local agencies as necessary to determine whether an applicant for federally assisted housing is subject to a lifetime registration requirement under a State sex offender registration program; and
(2)
State and local agencies responsible for the collection or maintenance of criminal history record information or information on persons required to register as sex offenders shall comply with requests of public housing agencies for information pursuant to this section.
(c)

Requests By Owners For PHA's To Obtain Information.—
A public housing agency may take any action under subsection (b) regarding applicants for, or tenants of, federally assisted housing other than federally assisted housing described in subparagraph (A) or (B) of section 579(a)(2), but only if the housing is located within the jurisdiction of the agency and the owner of such housing has requested that the agency take such action on behalf of the owner. Upon such a request by the owner, the agency shall take the action requested under subsection (b). The agency may not make any information obtained pursuant to the action under subsection (b) available to the owner but shall perform determinations for the owner regarding screening, lease enforcement, and eviction based on criteria supplied by the owner.
(d)

Opportunity To Dispute.—
Before an adverse action is taken with respect to an applicant for federally assisted housing on the basis that an individual is subject to a lifetime registration requirement under a State sex offender registration program, the public housing agency obtaining the record shall provide the tenant or applicant with a copy of the registration information and an opportunity to dispute the accuracy and relevance of that information.
(e)

Fee.—
A public housing agency may be charged a reasonable fee for taking actions under subsection (b). In the case of a public housing agency taking actions on behalf of another owner of federally assisted housing pursuant to subsection (c), the agency may pass such fee on to the owner making the request and may charge an additional reasonable fee for making the request on behalf of the owner.
(f)

Records Management.—
Each public housing agency shall establish and implement a system of records management that ensures that any criminal record or information regarding a lifetime registration requirement under a State sex offender registration program that is obtained under this section by the public housing agency is—
(1)
maintained confidentially;
(2)
not misused or improperly disseminated; and
(3)
destroyed, once the purpose for which the record was requested has been accomplished.
SEC. 579.
[42 U.S.C. 13664]

DEFINITIONS.
(a)

Definitions.—
For purposes of this subtitle, the following definitions shall apply:
(1)

Drug-related criminal activity.—
The term “drug-related criminal activity” has the meaning given the term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(2)

Federally assisted housing.—
The term “federally assisted housing” means a dwelling unit—
(A)
in public housing (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a));
(B)
assisted with tenant-based assistance under section 8 of the United States Housing Act of 1937;
(C)
in housing that is provided project-based assistance under section 8 of the United States Housing Act of 1937, including new construction and substantial rehabilitation projects;
(D)
in housing that is assisted under section 202 of the Housing Act of 1959 (as amended by section 801 of the Cranston-Gonzalez National Affordable Housing Act);
(E)
in housing that is assisted under section 202 of the Housing Act of 1959, as such section existed before the enactment of the Cranston-Gonzalez National Affordable Housing Act;
(F)
in housing that is assisted under section 811 of the Cranston-Gonzalez National Affordable Housing Act;
(G)
in housing financed by a loan or mortgage insured under section 221(d)(3) of the National Housing Act that bears interest at a rate determined under the proviso of section 221(d)(5) of such Act;
(H)
in housing insured, assisted, or held by the Secretary or a State or State agency under section 236 of the National Housing Act; or
(I)
in housing assisted under section 514 or 515 of the Housing Act of 1949.
(3)

Owner.—
The term “owner” means, with respect to federally assisted housing, the entity or private person (including a cooperative or public housing agency) that has the legal right to lease or sublease dwelling units in such housing.
SEC. 581.
[42 U.S.C. 1437 note]

ANNUAL REPORT.
(a)

In General.—
Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary shall submit a report to the Congress on—
(1)
the impact of the amendments made by this Act on—
(A)
the demographics of public housing residents and families receiving tenant-based assistance under the United States Housing Act of 1937; and
(B)
the economic viability of public housing agencies; and
(2)
the effectiveness of the rent policies established by this Act and the amendments made by this Act on the employment status and earned income of public housing residents.
(b)

Effective Date.—
This section shall take effect on the date of the enactment of this Act.6
^6
October 21, 1998.
SEC. 589.
[42 U.S.C. 3608 note]

TREATMENT OF OCCUPANCY STANDARDS.
(a)

Establishment of Policy.—
Not later than 60 days after the date of the enactment of this Act7, the Secretary of Housing and Urban Development shall publish a notice in the Federal Register for effect that takes effect upon publication and provides that the specific and unmodified standards provided in the March 20, 1991, Memorandum from the General Counsel of the Department of Housing and Urban Development to all Regional Counsel shall be the policy of the Department of Housing and Urban Development with respect to complaints of discrimination under the Fair Housing Act (42 U.S.C. 3601 et seq.) on the basis of familial status which involve an occupancy standard established by a housing provider.
^7
The date of enactment was October 21, 1998.
(b)

Prohibition of National Standard.—
The Secretary of Housing and Urban Development shall not directly or indirectly establish a national occupancy standard.
SEC. 599G.
[12 U.S.C. 1701z–1 note]

REHABILITATION DEMONSTRATION GRANT PROGRAM.
(a)

In General.—
The Secretary of Housing and Urban Development shall, to the extent amounts are provided in appropriation Acts to carry out this section, carry out a program to demonstrate the effectiveness of making grants for rehabilitation of single family housing located within 10 demonstration areas designated by the Secretary. Of the areas designated by the Secretary under this section—
(1)
6 shall be areas that have primarily urban characteristics;
(2)
3 shall be areas that are outside of a metropolitan statistical area; and
(3)
1 shall be an area that has primarily rural characteristics.
In selecting areas, the Secretary shall provide for national geographic and demographic diversity.
(b)

Grantees.—
Grants under the program under this section may be made only to agencies of State and local governments and non-profit organizations operating within the demonstration areas.
(c)

Selection Criteria.—
In selecting among applications for designation of demonstration areas and grants under this section, the Secretary shall consider—
(1)
the extent of single family residences located in the proposed area that have rehabilitation needs;
(2)
the ability and expertise of the applicant in carrying out the purposes of the demonstration program, including the availability of qualified housing counselors and contractors in the proposed area willing and able to participate in rehabilitation activities funded with grant amounts;
(3)
the extent to which the designation of such area and the grant award would promote affordable housing opportunities;
(4)
the extent to which selection of the proposed area would have a beneficial effect on the neighborhood or community in the area and on surrounding areas;
(5)
the extent to which the applicant has demonstrated that grant amounts will be used to leverage additional public or private funds to carry out the purposes of the demonstration program;
(6)
the extent to which lenders (including local lenders and lenders outside the proposed area) are willing and able to make loans for rehabilitation activities assisted with grant funds; and
(7)
the extent to which the application provides for the involvement of local residents in the planning of rehabilitation activities in the demonstration area.
(d)

Use of Grant Funds.—
Funds from grants made under this section may be used by grantees—
(1)
to subsidize interest on loans, over a period of not more than 5 years from the origination date of the loan, made after the date of the enactment of this Act for rehabilitation of any owner-occupied 1- to 4-family residence, including the payment of interest during any period in which a residence is uninhabitable because of rehabilitation activities;
(2)
to facilitate loans for rehabilitation of 1- to 4-family properties previously subject to a mortgage insured under the National Housing Act that has been foreclosed or for which insurance benefits have been paid, including to establish revolving loan funds, loan loss reserves, and other financial structures; and
(3)
to provide technical assistance in conjunction with the rehabilitation of owner-occupied 1- to 4-family residences, including counseling, selection contractors, monitoring of work, approval of contractor payments, and final inspection of work.
(e)

Definition of Rehabilitation.—
For purposes of this section, the term “rehabilitation” has the meaning given such term in section 203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)).
(f)

Authorization of Appropriations.—
There is authorized to be appropriated to the Secretary to carry out this section such sums as may be necessary for each of fiscal years 1999 through 2003.
(g)

Effective Date.—
This section shall take effect on the date of the enactment of this Act.8
^8
October 21, 1998.
SEC. 599H.

ASSISTANCE FOR CERTAIN LOCALITIES.
* * * * * * *
(b)
[42 U.S.C. 1436d]

Consultation With Affected Areas in Settlement of Litigation.—
In negotiating any settlement of, or consent decree for, significant litigation regarding public housing or section 8 tenant-based assistance that involves the Secretary and any public housing agency or any unit of general local government, the Secretary shall seek the views of any units of general local government and public housing agencies having jurisdictions that are adjacent to the jurisdiction of the public housing agency involved, if the resolution of such litigation would involve the acquisition or development of public housing dwelling units or the use of vouchers under section 8 of the United States Housing Act of 1937 in jurisdictions that are adjacent to the jurisdiction of the public housing agency involved in the litigation.
* * * * * * *
(m)

Effective Date.—
This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act.9
^9
October 21, 1998.