[Congressional Record Volume 140, Number 33 (Tuesday, March 22, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
      MULTIFAMILY HOUSING PROPERTY DISPOSITION REFORM ACT OF 1994

  The SPEAKER pro tempore. The unfinished business is the question of 
suspending the rules and passing the bill, H.R. 4067, as amended.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas [Mr. Gonzalez] that the House suspend the rules 
and pass the bill, H.R. 4067, as amended.
  The question was taken.
  Mr. YATES. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. The Chair announces that he will reduce to 5 
minutes the time for any other recorded vote after the first such vote 
in this series.
  The vote was taken by electronic device, and there were--yeas 413, 
nays 9, not voting 11, as follows:

                             [Roll No. 81]

                               YEAS--413

     Abercrombie
     Ackerman
     Allard
     Andrews (ME)
     Andrews (NJ)
     Andrews (TX)
     Applegate
     Archer
     Armey
     Bacchus (FL)
     Bachus (AL)
     Baesler
     Baker (CA)
     Baker (LA)
     Barca
     Barcia
     Barlow
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bateman
     Becerra
     Beilenson
     Bentley
     Bereuter
     Berman
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Blackwell
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bonior
     Borski
     Boucher
     Brewster
     Brooks
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant
     Bunning
     Burton
     Buyer
     Byrne
     Callahan
     Calvert
     Camp
     Canady
     Cantwell
     Cardin
     Carr
     Castle
     Chapman
     Clayton
     Clement
     Clinger
     Clyburn
     Coble
     Coleman
     Collins (GA)
     Combest
     Condit
     Conyers
     Cooper
     Coppersmith
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crapo
     Cunningham
     Danner
     Darden
     de la Garza
     Deal
     DeFazio
     DeLauro
     DeLay
     Dellums
     Derrick
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Dooley
     Doolittle
     Dornan
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards (CA)
     Edwards (TX)
     Ehlers
     Emerson
     Engel
     English
     Eshoo
     Evans
     Everett
     Ewing
     Farr
     Fawell
     Fazio
     Fields (LA)
     Fields (TX)
     Fingerhut
     Fish
     Flake
     Foglietta
     Ford (MI)
     Ford (TN)
     Fowler
     Frank (MA)
     Franks (CT)
     Franks (NJ)
     Frost
     Furse
     Gallegly
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Gilchrest
     Gilman
     Gingrich
     Glickman
     Gonzalez
     Goodlatte
     Goodling
     Gordon
     Goss
     Grams
     Green
     Greenwood
     Gunderson
     Hall (OH)
     Hall (TX)
     Hamburg
     Hancock
     Hansen
     Harman
     Hastert
     Hayes
     Hefley
     Hefner
     Herger
     Hilliard
     Hoagland
     Hobson
     Hochbrueckner
     Hoekstra
     Hoke
     Holden
     Horn
     Houghton
     Hoyer
     Huffington
     Hughes
     Hunter
     Hutchinson
     Hutto
     Hyde
     Inglis
     Inhofe
     Inslee
     Istook
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (GA)
     Johnson (SD)
     Johnson, E.B.
     Johnson, Sam
     Johnston
     Kanjorski
     Kaptur
     Kasich
     Kennedy
     Kennelly
     Kildee
     Kim
     King
     Kingston
     Kleczka
     Klein
     Klink
     Klug
     Knollenberg
     Kolbe
     Kopetski
     Kreidler
     Kyl
     LaFalce
     Lambert
     Lancaster
     Lantos
     LaRocco
     Laughlin
     Lazio
     Leach
     Lehman
     Levin
     Levy
     Lewis (CA)
     Lewis (FL)
     Lewis (GA)
     Lightfoot
     Linder
     Lipinski
     Livingston
     Lloyd
     Long
     Lowey
     Machtley
     Mann
     Manton
     Manzullo
     Margolies-Mezvinsky
     Markey
     Martinez
     Matsui
     Mazzoli
     McCandless
     McCloskey
     McCollum
     McCrery
     McCurdy
     McDade
     McDermott
     McHale
     McHugh
     McInnis
     McKeon
     McKinney
     McMillan
     McNulty
     Meehan
     Meek
     Menendez
     Meyers
     Mfume
     Mica
     Michel
     Miller (CA)
     Miller (FL)
     Mineta
     Minge
     Mink
     Moakley
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Moran
     Morella
     Murphy
     Murtha
     Myers
     Nadler
     Neal (MA)
     Neal (NC)
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Oxley
     Packard
     Pallone
     Parker
     Pastor
     Paxon
     Payne (NJ)
     Payne (VA)
     Pelosi
     Penny
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pickle
     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Price (NC)
     Pryce (OH)
     Quinn
     Rahall
     Ramstad
     Rangel
     Ravenel
     Reed
     Regula
     Reynolds
     Richardson
     Ridge
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Rostenkowski
     Roth
     Roukema
     Rowland
     Roybal-Allard
     Royce
     Rush
     Sabo
     Sangmeister
     Santorum
     Sarpalius
     Sawyer
     Saxton
     Schaefer
     Schenk
     Schiff
     Schroeder
     Schumer
     Scott
     Sensenbrenner
     Serrano
     Sharp
     Shaw
     Shays
     Shepherd
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slattery
     Slaughter
     Smith (IA)
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Snowe
     Solomon
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Stokes
     Strickland
     Studds
     Stump
     Stupak
     Swett
     Swift
     Synar
     Talent
     Tanner
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas (CA)
     Thomas (WY)
     Thompson
     Thornton
     Thurman
     Torkildsen
     Torres
     Torricelli
     Towns
     Tucker
     Unsoeld
     Upton
     Valentine
     Velazquez
     Vento
     Visclosky
     Volkmer
     Vucanovich
     Walker
     Walsh
     Waters
     Watt
     Waxman
     Weldon
     Wheat
     Whitten
     Williams
     Wilson
     Wise
     Wolf
     Woolsey
     Wyden
     Wynn
     Young (AK)
     Young (FL)
     Zeliff
     Zimmer

                                NAYS--9

     Collins (IL)
     Collins (MI)
     Filner
     Gutierrez
     Hamilton
     Hinchey
     Sanders
     Traficant
     Yates

                             NOT VOTING--11

     Ballenger
     Clay
     Gallo
     Gillmor
     Grandy
     Hastings
     Maloney
     Natcher
     Quillen
     Sundquist
     Washington

                              {time}  1805

  Mr. GUTIERREZ changed his vote from ``yea'' to ``nay.''
  So (two-thirds having voted in favor thereof) the rules were 
suspended and the bill, as amended, was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Mr. GONZALEZ. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 1299) to reform requirements for 
the disposition of multifamily property owned by the Secretary of 
Housing and Urban Development, enhance program flexibility, authorize a 
program to combat crime, and for other purposes and ask for its 
immediate consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore (Mr. de la Garza). Is there objection to the 
request of the gentleman from Texas?
  There was no objection.
  The Clerk read the Senate bill, as follows:

                                S. 1299

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Housing and Community 
     Development Act of 1993''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                    TITLE I--FHA MULTIFAMILY REFORMS

Sec. 101. Multifamily property disposition.
Sec. 102. Repeal of State agency multifamily property disposition 
              demonstration.
Sec. 103. RTC marketing and disposition of multifamily projects owned 
              by HUD.
Sec. 104. Civil money penalties against general partners and certain 
              managing agents of multifamily housing projects.
Sec. 105. Models for property disposition. 
Sec. 106. Preventing mortgage defaults.
Sec. 107. Interest rates on assigned mortgages.
Sec. 108. Authorization of appropriations. 

                 TITLE II--ENHANCED PROGRAM FLEXIBILITY

            Subtitle A--Office of Public and Indian Housing

Sec. 201. Revitalization of severely distressed public housing.
Sec. 202. Disallowance of earned income for residents who obtain 
              employment.
Sec. 203. Ceiling rents based on reasonable rental value.
Sec. 204. Resident management program.

        Subtitle B--Office of Community Planning and Development

Sec. 211. Economic development initiative.
Sec. 212. HOME investment partnerships.
Sec. 213. HOPE match requirement.
Sec. 214. Flexibility of CDBG program for disaster areas.
Sec. 215. Flexibility of HOME program for disaster areas.

            Subtitle C--Community Partnerships Against Crime

Sec. 221. COMPAC program.

               TITLE III--TECHNICAL AND OTHER AMENDMENTS

                Subtitle A--Public and Assisted Housing

Sec. 301. Correction to definition of family.
Sec. 302. Identification of CIAP replacement needs.
Sec. 303. Applicability of public housing amendments to Indian housing.
Sec. 304. Project-based accounting.
Sec. 305. Operating subsidy adjustments for anticipated fraud 
              recoveries.
Sec. 306. Technical assistance for lead hazard reduction grantees.
Sec. 307. Environmental review in connection with grants for lead-based 
              paint hazard reduction.
Sec. 308. Fire safety in federally assisted housing.
Sec. 309. Section 23 conversion projects.
Sec. 310. Indemnification of contractors for intellectual property 
              rights disputes.
Sec. 311. Assumption of environmental review responsibilities under 
              United States Housing Act of 1937 programs.
Sec. 312. Increased State flexibility in the Low-Income Home Energy 
              Assistance Program.

                    Subtitle B--Multifamily Housing

Sec. 321. Correction of multifamily mortgage limits.
Sec. 322. FHA multifamily risk-sharing; HFA pilot program amendments.
Sec. 323. Subsidy layering review.

           Subtitle C--Miscellaneous and Technical Amendments

Sec. 331. Technical correction to rural housing preservation program.
Sec. 332. CDBG technical amendment.
Sec. 333. Environmental review in connection with special projects.

                      TITLE IV--GENERAL PROVISIONS

Sec. 401. Mount Rushmore Commemorative Coin Act.
Sec. 402. Minority community development grants for communities with 
              special needs.

     SEC. 3. DEFINITIONS.

       As used in this Act--
       (1) the term ``FHA'' means the Federal Housing 
     Administration;
       (2) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development; and
       (3) the term ``RTC'' means the Resolution Trust 
     Corporation.
                    TITLE I--FHA MULTIFAMILY REFORMS

     SEC. 101. MULTIFAMILY PROPERTY DISPOSITION.

       (a) Findings.--The Congress finds that--
       (1) the portfolio of multifamily housing project mortgages 
     insured by the FHA is severely troubled and at risk of 
     default, requiring the Secretary to increase loss reserves 
     from $5.5 billion in 1991 to $11.9 billion in 1992 to cover 
     estimated future losses;
       (2) the inventory of multifamily housing projects owned by 
     the Secretary has more than tripled since 1989, and, by the 
     end of 1993, may exceed 75,000 units;
       (3) the cost to the Federal Government of owning and 
     maintaining multifamily housing projects escalated to 
     approximately $250 million in fiscal year 1992;
       (4) the inventory of multifamily housing projects subject 
     to mortgages held by the Secretary has increased 
     dramatically, to more than 2,400 mortgages, and approximately 
     half of these mortgages, secured by projects with over 
     230,000 units, are delinquent;
       (5) the inventory of insured and formerly insured 
     multifamily housing projects is rapidly deteriorating, 
     endangering tenants and neighborhoods;
       (6) over 5 million very low-income families today have a 
     critical need for housing that is affordable and habitable; 
     and
       (7) the current statutory framework governing the 
     disposition of multifamily housing projects effectively 
     impedes the Government's ability to dispose of properties, 
     protect tenants, and ensure that projects are maintained over 
     time.
       (b) Management and Disposition of Multifamily Housing 
     Projects.--Section 203 of the Housing and Community 
     Development Amendments of 1978 (12 U.S.C. 1701z-11) is 
     amended to read as follows:

     ``SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING 
                   PROJECTS.

       ``(a) Goals.--The Secretary of Housing and Urban 
     Development (hereafter in this section referred to as the 
     `Secretary') shall manage or dispose of multifamily housing 
     projects that are owned by the Secretary or that are subject 
     to a mortgage held by the Secretary in a manner that--
       ``(1) is consistent with the National Housing Act and this 
     section;
       ``(2) will protect the financial interests of the Federal 
     Government; and
       ``(3) will, in the least costly fashion among reasonable 
     available alternatives, further the goals of--
       ``(A) preserving housing so that it can remain available to 
     and affordable by low-income persons;
       ``(B) preserving and revitalizing residential 
     neighborhoods;
       ``(C) maintaining existing housing stock in a decent, safe, 
     and sanitary condition;
       ``(D) minimizing the involuntary displacement of tenants;
       ``(E) maintaining housing for the purpose of providing 
     rental housing, cooperative housing, and homeownership 
     opportunities for low-income persons; and
       ``(F) minimizing the need to demolish multifamily housing 
     projects.
     The Secretary, in determining the manner in which a project 
     is to be managed or disposed of, shall balance competing 
     goals relating to individual projects in a manner that will 
     further the purposes of this section.
       ``(b) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Multifamily housing project.--The term `multifamily 
     housing project' means any multifamily rental housing project 
     that is, or prior to acquisition by the Secretary was, 
     assisted or insured under the National Housing Act, or was 
     subject to a loan under section 202 of the Housing Act of 
     1959.
       ``(2) Subsidized project.--The term `subsidized project' 
     means a multifamily housing project receiving any of the 
     following types of assistance immediately prior to the 
     assignment of the mortgage on such project to, or the 
     acquisition of such mortgage by, the Secretary:
       ``(A) Below market interest rate mortgage insurance under 
     the proviso of section 221(d)(5) of the National Housing Act.
       ``(B) Interest reduction payments made in connection with 
     mortgages insured under section 236 of the National Housing 
     Act.
       ``(C) Direct loans made under section 202 of the Housing 
     Act of 1959.
       ``(D) Assistance in the form of--
       ``(i) rent supplement payments under section 101 of the 
     Housing and Urban Development Act of 1965;
       ``(ii) additional assistance payments under section 
     236(f)(2) of the National Housing Act;
       ``(iii) housing assistance payments made under section 23 
     of the United States Housing Act of 1937 (as in effect before 
     January 1, 1975); or
       ``(iv) housing assistance payments made under section 8 of 
     the United States Housing Act of 1937 (excluding payments 
     made for tenant-based assistance under section 8);

     if (except for purposes of section 183(c) of the Housing and 
     Community Development Act of 1987) such assistance payments 
     are made to more than 50 percent of the units in the project.
       ``(3) Formerly subsidized project.--The term `formerly 
     subsidized project' means a multifamily housing project owned 
     by the Secretary that was a subsidized project immediately 
     prior to its acquisition by the Secretary.
       ``(4) Unsubsidized project.--The term `unsubsidized 
     project' means a multifamily housing project owned by the 
     Secretary that is not a subsidized project or a formerly 
     subsidized project.
       ``(c) Management or Disposition of Property.--
       ``(1) Disposition to purchasers.--The Secretary is 
     authorized, in carrying out this section, to dispose of a 
     multifamily housing project owned by the Secretary on a 
     negotiated, competitive bid, or other basis, on such terms as 
     the Secretary deems appropriate considering the low-income 
     character of the project and the requirements of subsection 
     (a), to a purchaser determined by the Secretary to be capable 
     of--
       ``(A) satisfying the conditions of the disposition plan;
       ``(B) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and repair expenses to ensure that 
     the project will remain in decent, safe, and sanitary 
     condition;
       ``(C) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(D) providing adequate organizational, staff, and 
     financial resources to the project; and
       ``(E) meeting such other requirements as the Secretary may 
     determine.
       ``(2) Contracting for management services.--The Secretary 
     is authorized, in carrying out this section--
       ``(A) to contract for management services for a multifamily 
     housing project that is owned by the Secretary (or for which 
     the Secretary is mortgagee in possession), on a negotiated, 
     competitive bid, or other basis at a price determined by the 
     Secretary to be reasonable, with a manager the Secretary has 
     determined is capable of--
       ``(i) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and maintenance expenses to ensure 
     that the project will remain in decent, safe, and sanitary 
     condition;
       ``(ii) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(iii) providing adequate organizational, staff, and other 
     resources to implement a management program; and
       ``(iv) meeting such other requirements as the Secretary may 
     determine; and
       ``(B) to require the owner of a multifamily housing project 
     that is subject to a mortgage held by the Secretary to 
     contract for management services for the project in the 
     manner described in subparagraph (A).
       ``(3) Foreclosure sale.--In carrying out this section, the 
     Secretary shall--
       ``(A) prior to foreclosing on any multifamily housing 
     project held by the Secretary, notify both the unit of 
     general local government in which the property is located and 
     the tenants of the property of the proposed foreclosure sale; 
     and
       ``(B) upon disposition of a multifamily housing project 
     through a foreclosure sale, determine that the purchaser is 
     capable of implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and repair expenses to ensure that 
     the project will remain in decent, safe, and sanitary 
     condition.
       ``(d) Maintenance of Housing Projects.--
       ``(1) Housing projects owned by the secretary.--In the case 
     of multifamily housing projects that are owned by the 
     Secretary (or for which the Secretary is mortgagee in 
     possession), the Secretary shall--
       ``(A) to the greatest extent possible, maintain all such 
     occupied projects in a decent, safe, and sanitary condition;
       ``(B) to the greatest extent possible, maintain full 
     occupancy in all such projects; and
       ``(C) maintain all such projects for purposes of providing 
     rental or cooperative housing.
       ``(2) Housing projects subject to a mortgage held by the 
     secretary.--In the case of any multifamily housing project 
     that is subject to a mortgage held by the Secretary, the 
     Secretary shall require the owner of the project to carry out 
     the requirements of paragraph (1).
       ``(e) Required Assistance.--In carrying out the goals 
     specified in subsection (a), the Secretary shall take not 
     less than one of the following actions:
       ``(1) Contract with owner.--Enter into contracts under 
     section 8 of the United States Housing Act of 1937, to the 
     extent budget authority is available, with owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary.
       ``(A) Subsidized or formerly subsidized projects receiving 
     certain assistance.--In the case of a subsidized project 
     referred to in subparagraph (A), (B), or (C) of subsection 
     (b)(2) or a formerly subsidized project that was subsidized 
     as described in any such subparagraph--
       ``(i) the contract shall be sufficient to assist at least 
     all units covered by an assistance contract under any of the 
     authorities referred to in subsection (b)(2)(D) before 
     acquisition, unless the Secretary acts pursuant to the 
     provisions of subparagraph (C) of this paragraph;
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to clause (i) that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this subparagraph shall also provide that 
     when a vacancy occurs, the owner shall lease the available 
     unit to a family eligible for assistance under section 8; and
       ``(iii) the Secretary shall take actions to ensure the 
     availability and affordability, as defined in paragraph 
     (3)(B), for the remaining useful life of the project, as 
     defined by the Secretary, of any unit located in any project 
     referred to in subparagraph (A), (B), or (C) of subsection 
     (b)(2) that does not otherwise receive project-based rental 
     assistance under this subparagraph. To carry out this clause, 
     the Secretary may require purchasers to establish use or rent 
     restrictions on these units.
       ``(B) Subsidized or formerly subsidized projects receiving 
     other assistance.--In the case of a subsidized project 
     referred to in subsection (b)(2)(D) or a formerly subsidized 
     project that was subsidized as described in subsection 
     (b)(2)(D)--
       ``(i) the contract shall be sufficient to assist at least 
     all units in the project that are covered, or that were 
     covered immediately before foreclosure on or acquisition of 
     the project by the Secretary, by an assistance contract under 
     any of the authorities referred to in such subsection, unless 
     the Secretary acts pursuant to provisions of subparagraph 
     (C); and
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to clause (i) that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this paragraph shall also provide that when 
     a vacancy occurs, the owner shall lease the available unit to 
     a family eligible for assistance under section 8.
       ``(C) Exceptions to subparagraphs (a) and (b).--In lieu of 
     providing project-based rental assistance under subparagraph 
     (A) or (B), the Secretary may require certain units in 
     unsubsidized projects to contain use restrictions providing 
     that such units will be available to and affordable by very 
     low-income families for the remaining useful life of the 
     project, as defined by the Secretary, if--
       ``(i) the Secretary matches any reduction in the number of 
     units otherwise required to be assisted with project-based 
     rental assistance under subparagraph (A) or (B) with at least 
     an equivalent increase in the number of units made 
     affordable, as such term is defined in paragraph (3)(B), to 
     very low-income persons within unsubsidized projects;
       ``(ii) the Secretary makes tenant-based assistance under 
     section 8 available to low-income tenants residing in units 
     otherwise requiring project-based rental assistance under 
     subparagraph (A) or (B) upon disposition; and
       ``(iii) the units described in clause (i) are located 
     within the same market area.
       ``(D) Contract requirements for unsubsidized projects.--
     Notwithstanding actions that are taken pursuant to 
     subparagraph (C), in any unsubsidized project--
       ``(i) the contract shall be at least sufficient to provide 
     project-based rental assistance for all units that are 
     covered or were covered immediately before foreclosure or 
     acquisition by an assistance contract under--

       ``(I) section 8(b)(2) of the United States Housing Act of 
     1937, as such section existed before October 1, 1983 (new 
     construction and substantial rehabilitation); section 8(b) of 
     such Act (property disposition); section 8(d)(2) of such Act 
     (project-based certificates); section 8(e)(2) of such Act 
     (moderate rehabilitation); section 23 of such Act (as in 
     effect before January 1, 1975); or section 101 of the Housing 
     and Urban Development Act of 1965 (rent supplements); or
       ``(II) section 8 of the United States Housing Act of 1937, 
     following conversion from section 101 of the Housing and 
     Urban Development Act of 1965; and

       ``(ii) the Secretary shall make available tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 to tenants currently residing in units that were 
     covered by an assistance contract under the Loan Management 
     Set-Aside program under section 8(b) of the United States 
     Housing Act of 1937 immediately before foreclosure or 
     acquisition of the project by the Secretary.
       ``(2) Annual contribution contracts.--In the case of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary, enter into annual contribution contracts with 
     public housing agencies to provide tenant-based assistance 
     under section 8 of the United States Housing Act of 1937 to 
     all low-income families who are otherwise eligible for 
     assistance, in accordance with the requirements of 
     subparagraph (A), (B), or (D) of paragraph (1), on the date 
     that the project is acquired by the purchaser. The Secretary 
     shall take action under this paragraph only after making a 
     determination that there is an adequate supply of habitable 
     housing in the area that is available to and affordable by 
     low-income families using such assistance. With respect to 
     subsidized or formerly subsidized projects, actions may be 
     taken pursuant to this paragraph in connection with not more 
     than 10 percent of the aggregate number of units in 
     subsidized or formerly subsidized projects disposed of by the 
     Secretary in each fiscal year.
       ``(3) Other assistance.--
       ``(A) In general.--In accordance with the authority 
     provided under the National Housing Act, reduce the selling 
     price, apply use or rent restrictions on certain units, or 
     provide other financial assistance to the owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure, or after sale by the 
     Secretary, on terms that will ensure that at least those 
     units otherwise required to receive project-based section 8 
     assistance pursuant to subparagraph (A), (B), or (D) of 
     paragraph (1) are available to and affordable by low-income 
     persons for the remaining useful life of the project, as 
     defined by the Secretary.
       ``(B) Definition.--A unit shall be considered affordable 
     under this paragraph if--
       ``(i) for very low-income tenants, the rent for such unit 
     does not exceed 30 percent of 50 percent of the area median 
     income, as determined by the Secretary, with adjustments for 
     family size; and
       ``(ii) for low-income tenants other than very low-income 
     tenants, the rent for such unit does not exceed 30 percent of 
     80 percent of the area median income, as determined by the 
     Secretary, with adjustments for family size.
       ``(C) Very low-income tenants.--The Secretary shall provide 
     assistance under section 8 of the United States Housing Act 
     of 1937 to any very low-income tenant currently residing in a 
     unit otherwise required to receive project-based rental 
     assistance under section 8, pursuant to subparagraph (A), 
     (B), or (D) of paragraph (1), if the rents charged such 
     tenants as a result of actions taken pursuant to this 
     paragraph exceed the amount payable as rent under section 
     3(a) of the United States Housing Act of 1937.
       ``(4) Transfer for use under other programs of the 
     secretary.--
       ``(A) In general.--Enter into an agreement providing for 
     the transfer of a multifamily housing project--
       ``(i) to a public housing agency for use of the project as 
     public housing; or
       ``(ii) to an owner or another appropriate entity for use of 
     the project under section 202 of the Housing Act of 1959 or 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act.
       ``(B) Requirements for agreement.--The agreement described 
     in subparagraph (A) shall--
       ``(i) contain such terms, conditions, and limitations as 
     the Secretary determines appropriate, including requirements 
     to assure use of the project under the public housing, 
     section 202, and section 811 programs; and
       ``(ii) ensure that no current tenant will be displaced as a 
     result of actions taken under this paragraph.
       ``(f) Other Assistance.--In addition to the actions 
     required by subsection (e), the Secretary may take any of the 
     following actions:
       ``(1) Short-term loans.--Provide short-term loans to 
     facilitate the sale of multifamily housing projects to 
     nonprofit organizations or to public agencies if--
       ``(A) authority for such loans is provided in advance in an 
     appropriations Act;
       ``(B) such loans are for a term of not more than 5 years;
       ``(C) the Secretary is presented with satisfactory 
     documentation, evidencing a commitment of permanent financing 
     to replace such short-term loan, from a lender who meets 
     standards set forth by the Secretary; and
       ``(D) the terms of such loans are consistent with 
     prevailing practices in the marketplace or the provision of 
     such loans results in no cost to the Government, as defined 
     in section 502 of the Congressional Budget Act.
       ``(2) Tenant-based assistance.--Make available tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 to very low-income families that do not otherwise 
     qualify for project-based rental assistance.
       ``(3) Alternative uses.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, and subject to notice to and comment from existing 
     tenants, allow not more than--
       ``(i) 5 percent of the total number of units in multifamily 
     housing projects that are disposed of by the Secretary during 
     each fiscal year to be made available for uses other than 
     rental or cooperative housing, including low-income 
     homeownership opportunities, community space, office space 
     for tenant or housing-related service providers or security 
     programs, or small business uses, if such uses benefit the 
     tenants of the project; and
       ``(ii) 5 percent of the total number of units in 
     multifamily housing projects that are disposed of by the 
     Secretary during each fiscal year to be used in any manner, 
     if the Secretary and the unit of general local government or 
     area-wide governing body determine that such use will further 
     fair housing, community development, or neighborhood 
     revitalization goals.
       ``(B) Displacement protection.--The Secretary shall--
       ``(i) make available tenant-based assistance under section 
     8 of the United States Housing Act of 1937 to any tenant 
     displaced as a result of actions taken by the Secretary 
     pursuant to subparagraph (A); and
       ``(ii) take such actions as the Secretary determines 
     necessary to ensure the successful use of any tenant-based 
     assistance provided under this subparagraph.
       ``(4) Authorization of use or rent restrictions in 
     unsubsidized projects.--In carrying out the goals specified 
     in subsection (a), the Secretary may require certain units in 
     unsubsidized projects upon disposition to contain use or rent 
     restrictions providing that such units will be available to 
     and affordable by very low-income persons for the remaining 
     useful life of the property, as defined by the Secretary.
       ``(g) Contract Requirements.--
       ``(1) Contract term.--
       ``(A) In general.--Contracts for project-based rental 
     assistance under section 8 of the United States Housing Act 
     of 1937 provided pursuant to this section shall be for a term 
     of not more than 15 years; and
       ``(B) Contract term of less than 15 years.--To the extent 
     that units receive project-based rental assistance for a 
     contract term of less than 15 years, the Secretary shall 
     require that rents charged to tenants for such units shall 
     not exceed the amount payable for rent under section 3(a) of 
     the United States Housing Act of 1937 for a period of at 
     least 15 years.
       ``(2) Contract rent.--
       ``(A) In general.--The Secretary shall set contract rents 
     for section 8 project-based rental contracts issued under 
     this section at levels that, in conjunction with other 
     resources available to the purchaser, provide for the 
     necessary costs of rehabilitation of such project and do not 
     exceed the percentage of the existing housing fair market 
     rents for the area, as determined by the Secretary under 
     section 8(c) of the United States Housing Act of 1937.
       ``(B) Up-front grants.--If such an approach is determined 
     to be more cost-effective, the Secretary may utilize the 
     budget authority provided for project-based section 8 
     contracts issued under this section to
       ``(i) provide project-based section 8 rental assistance; 
     and
       ``(ii) provide up-front grants for the necessary costs of 
     rehabilitation.
       ``(h) Disposition Plan.--
       ``(1) In general.--Prior to the sale of a multifamily 
     housing project that is owned by the Secretary, the Secretary 
     shall develop a disposition plan for the project that 
     specifies the minimum terms and conditions of the Secretary 
     for disposition of the project, the initial sales price that 
     is acceptable to the Secretary, and the assistance that the 
     Secretary plans to make available to a prospective purchaser 
     in accordance with this section. The initial sales price 
     shall reflect the intended use of the property after sale.
       ``(2) Community and tenant input into disposition plans and 
     sales.--
       ``(A) In general.--In carrying out this section, the 
     Secretary shall develop procedures to obtain appropriate and 
     timely input into disposition plans from officials of the 
     unit of general local government affected, the community in 
     which the project is situated, and the tenants of the 
     project.
       ``(B) Tenant organizations.--The Secretary shall develop 
     procedures to facilitate, where feasible and appropriate, the 
     sale of multifamily housing projects to existing tenant 
     organizations with demonstrated capacity or to public or 
     nonprofit entities that represent or are affiliated with 
     existing tenant organizations.
       ``(C) Technical assistance.--
       ``(i) In general.--To carry out the procedures developed 
     under subparagraphs (A) and (B), the Secretary is authorized 
     to provide technical assistance, directly or indirectly.
       ``(ii) Technical assistance providers.--Recipients of 
     technical assistance funding under the Emergency Low Income 
     Housing Preservation Act of 1987, the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990, subtitle 
     B of title IV of the Cranston-Gonzalez National Affordable 
     Housing Act, shall be permitted to provide technical 
     assistance to the extent of such funding under any of such 
     programs or under this section, notwithstanding the source of 
     funding.
       ``(iii) Authorization of appropriations.--There are 
     authorized to be appropriated $5,000,000 to carry out this 
     subparagraph. In addition, the Secretary is authorized to use 
     amounts appropriated for technical assistance under the 
     Emergency Low Income Housing Preservation Act of 1987, the 
     Low-Income Housing Preservation and Resident Homeownership 
     Act of 1990, subtitle B of title IV of the Cranston-Gonzalez 
     National Affordable Housing Act, for the provision of 
     technical assistance under this section.
       ``(i) Right of First Refusal.--
       ``(1) Procedure.--
       ``(A) Notification by secretary of the acquisition of 
     title.--Not later than 30 days after the Secretary acquires 
     title to a multifamily housing project, the Secretary shall 
     notify the appropriate unit of general local government and 
     State agency or agencies designated by the Governor of the 
     acquisition of such title.
       ``(B) Expression of interest.--Not later than 45 days after 
     receiving notification from the Secretary under subparagraph 
     (A), the unit of general local government or designated State 
     agency may submit to the Secretary a preliminary expression 
     of interest in the project. The Secretary may take such 
     actions as may be necessary to require the unit of general 
     local government or designated State agency to substantiate 
     such interest.
       ``(C) Timely expression of interest.--If the unit of 
     general local government or designated State agency has 
     expressed interest in the project before the expiration of 
     the 45-day period referred to in subparagraph (B) and has 
     substantiated such interest if requested, the Secretary shall 
     notify the unit of general local government or designated 
     State agency, within a reasonable period of time, of the 
     terms and conditions of the disposition plan, in accordance 
     with subsection (h). The Secretary shall then give the unit 
     of general local government or designated State agency not 
     more than 90 days after the date of such notification to make 
     an offer to purchase the project.
       ``(D) No timely expression of interest.--If the unit of 
     general local government or designated State agency does not 
     express interest before the expiration of the 45-day period 
     referred to in subparagraph (B), or does not substantiate an 
     expressed interest if requested, the Secretary may offer the 
     project for sale to any interested person or entity.
       ``(2) Acceptance of offers.--If the Secretary has given the 
     unit of general local government or designated State agency 
     90 days to make an offer to purchase the project, the 
     Secretary shall accept an offer that complies with the terms 
     and conditions of the disposition plan. The Secretary may 
     accept an offer that does not comply with the terms and 
     conditions of the disposition plan if the Secretary 
     determines that the offer will further the goals specified in 
     subsection (a) by actions that include extension of the 
     duration of low-income affordability restrictions or 
     otherwise restructuring the transaction in a manner that 
     enhances the long-term affordability for low-income persons. 
     The Secretary shall, in particular, have discretion to reduce 
     the initial sales price in exchange for the extension of low-
     income affordability restrictions beyond the period of 
     assistance contemplated by the attachment of assistance 
     pursuant to subsection (e) or for an increase in the number 
     of units that are available to and affordable by low-income 
     families. If the Secretary and the unit of general local 
     government or designated State agency cannot reach agreement 
     within 90 days, the Secretary may offer the project for sale 
     to the general public.
       ``(3) Purchase by unit of general local government or 
     designated state agency.--Notwithstanding any other provision 
     of law, a unit of general local government (including a 
     public housing agency) or designated State agency may 
     purchase multifamily housing projects in accordance with this 
     subsection.
       ``(4) Applicability.--This subsection shall apply to 
     projects that are acquired on or after the effective date of 
     this subsection. With respect to projects acquired before 
     such effective date, the Secretary may apply--
       ``(A) the requirements of paragraphs (2) and (3) of section 
     203(e) as such paragraphs existed immediately before the 
     effective date of this subsection; or
       ``(B) the requirements of paragraphs (1) and (2) of this 
     subsection, if the Secretary gives the unit of general local 
     government or designated State agency--
       ``(i) 45 days to express interest in the project; and
       ``(ii) if the unit of general local government or 
     designated State agency expresses interest in the project 
     before the expiration of the 45-day period, and substantiates 
     such interest if requested, 90 days from the date of 
     notification of the terms and conditions of the disposition 
     plan to make an offer to purchase the project.
       ``(j) Displacement of Tenants and Relocation Assistance.--
       ``(1) In general.--Whenever tenants will be displaced as a 
     result of the demolition of, repairs to, or conversion in the 
     use of, a multifamily housing project that is owned by the 
     Secretary (or for which the Secretary is mortgagee in 
     possession), the Secretary shall identify tenants who will be 
     displaced, and shall notify all such tenants of their pending 
     displacement and of any relocation assistance that may be 
     available. In the case of a multifamily housing project that 
     is subject to a mortgage held by the Secretary, the Secretary 
     shall require the owner of the project to carry out the 
     requirements of this paragraph, if the Secretary has 
     authorized the demolition of, repairs to, or conversion in 
     the use of such multifamily housing project.
       ``(2) Rights of displaced tenants.--The Secretary shall 
     assure for any such tenant (who continues to meet applicable 
     qualification standards) the right--
       ``(A) to return, whenever possible, to a repaired unit;
       ``(B) to occupy a unit in another multifamily housing 
     project owned by the Secretary;
       ``(C) to obtain housing assistance under the United States 
     Housing Act of 1937; or
       ``(D) to receive any other available relocation assistance 
     as the Secretary determines to be appropriate.
       ``(k) Mortgage and Project Sales.--
       ``(1) In general.--The Secretary may not approve the sale 
     of any loan or mortgage held by the Secretary (including any 
     loan or mortgage owned by the Government National Mortgage 
     Association) on any subsidized project or formerly subsidized 
     project, unless such sale is made as part of a transaction 
     that will ensure that such project will continue to operate 
     at least until the maturity date of such loan or mortgage, in 
     a manner that will provide rental housing on terms at least 
     as advantageous to existing and future tenants as the terms 
     required by the program under which the loan or mortgage was 
     made or insured prior to the assignment of the loan or 
     mortgage on such project to the Secretary.
       ``(2) Sale of certain projects.--The Secretary may not 
     approve the sale of any subsidized project--
       ``(A) that is subject to a mortgage held by the Secretary; 
     or
       ``(B) if the sale transaction involves the provision of any 
     additional subsidy funds by the Secretary or a recasting of 
     the mortgage;

     unless such sale is made as part of a transaction that will 
     ensure that such project will continue to operate at least 
     until the maturity date of the loan or mortgage, in a manner 
     that will provide rental housing on terms at least as 
     advantageous to existing and future tenants as the terms 
     required by the program under which the loan or mortgage was 
     made or insured prior to the proposed sale of the project.
       ``(3) Mortgage sales to state and local governments.--
     Notwithstanding any provision of law that may require 
     competitive sales or bidding, the Secretary may carry out 
     negotiated sales of mortgages held by the Secretary that are 
     secured by subsidized, unsubsidized, or formerly subsidized 
     multifamily housing projects, without the competitive 
     selection of purchasers or intermediaries, to units of 
     general local government or State agencies, or groups of 
     investors that include at least 1 such unit of general local 
     government or State agency, if the negotiations are conducted 
     with such agencies, except that--
       ``(A) the terms of any such sale shall include the 
     agreement of the purchasing agency or unit of local 
     government or State agency to act as mortgagee or owner of a 
     beneficial interest in such mortgages, in a manner consistent 
     with maintaining the projects that are subject to such 
     mortgages for occupancy by the general tenant group intended 
     to be served by the applicable mortgage insurance program, 
     including, to the extent the Secretary determines 
     appropriate, authorizing such unit of local government or 
     State agency to enforce the provisions of any regulatory 
     agreement or other program requirements applicable to the 
     related projects; and
       ``(B) the sales prices for such mortgages shall be, in the 
     determination of the Secretary, the best prices that may be 
     obtained for such mortgages from a unit of general local 
     government or State agency, consistent with the expectation 
     and intention that the projects financed will be retained for 
     use under the applicable mortgage insurance program for the 
     life of the initial mortgage insurance contract.
       ``(4) Sale of mortgages covering unsubsidized projects.--
     Notwithstanding any other provision of law, the Secretary may 
     sell mortgages held on unsubsidized projects on such terms 
     and conditions as the Secretary may prescribe.
       ``(l) Project-Based Rental Assistance for Term of Less Than 
     15 Years.--Notwithstanding subsection (g), project-based 
     rental assistance in connection with the disposition of a 
     multifamily housing project may be provided for a contract 
     term of less than 15 years if such assistance is provided--
       ``(1) under a contract authorized under section 6 of the 
     HUD Demonstration Act of 1993; and
       ``(2) pursuant to a disposition plan under this section for 
     a project that is determined by the Secretary to be otherwise 
     in compliance with this section.
       ``(m) Report to Congress.--Not later than June 1 of each 
     year, the Secretary shall submit to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Banking, Finance and Urban Affairs of the House of 
     Representatives, a report describing the status of 
     multifamily housing projects owned by or subject to mortgages 
     held by the Secretary, on an aggregate basis, which 
     highlights the differences, if any, between the subsidized 
     and the unsubsidized inventory. The report shall include--
       ``(1) the average and median size of the projects;
       ``(2) the geographic locations of the projects, by State 
     and region;
       ``(3) the years during which projects were assigned to the 
     Department, and the average and median length of time that 
     projects remain in the HUD-held inventory;
       ``(4) the status of HUD-held mortgages;
       ``(5) the physical condition of the HUD-held and HUD-owned 
     inventory;
       ``(6) the occupancy profile of the projects, including the 
     income, family size, race, and ethnic origin of current 
     tenants, and the rents paid by such tenants;
       ``(7) the proportion of units that are vacant;
       ``(8) the number of projects for which the Secretary is 
     mortgagee in possession;
       ``(9) the number of projects sold in foreclosure sales;
       ``(10) the number of HUD-owned projects sold;
       ``(11) a description of actions undertaken pursuant to this 
     section, including--
       ``(A) a comparison of results between actions taken after 
     the date of enactment of the Housing and Community 
     Development Act of 1993 and actions taken in the years 
     preceding such date of enactment;
       ``(B) a description of any impediments to the disposition 
     or management of multifamily housing projects, together with 
     a recommendation of proposed legislative or regulatory 
     changes designed to ameliorate such impediments;
       ``(C) a description of actions taken to restructure or 
     commence foreclosure on delinquent multifamily mortgages held 
     by the Department; and
       ``(D) a description of actions taken to monitor and prevent 
     the default of multifamily housing mortgages held by the 
     Federal Housing Administration;
       ``(12) a description of any of the functions performed in 
     connection with this section that are contracted out to 
     public or private entities or to States, including--
       ``(A) the costs associated with such delegation;
       ``(B) the implications of contracting out or delegating 
     such functions for current Department field or regional 
     personnel, including anticipated personnel or work load 
     reductions;
       ``(C) necessary oversight required by Department personnel, 
     including anticipated personnel hours devoted to such 
     oversight;
       ``(D) a description of any authority granted to such public 
     or private entities or States in conjunction with the 
     functions that have been delegated or contracted out or that 
     are not otherwise available for use by Department personnel; 
     and
       ``(E) the extent to which such public or private entities 
     or States include tenants of multifamily housing projects in 
     the disposition planning for such projects; and
       ``(13) a description of the activities carried out under 
     subsection (i) during the preceding year.''.
       (c) Effective Date.--The Secretary shall, by notice 
     published in the Federal Register, which shall take effect 
     upon publication, establish such requirements as may be 
     necessary to implement the amendments made by this section. 
     The notice shall invite public comments and, not later than 
     12 months after the date on which the notice is published, 
     the Secretary shall issue final regulations based on the 
     initial notice, taking into account any public comments 
     received.

     SEC. 102. REPEAL OF STATE AGENCY MULTIFAMILY PROPERTY 
                   DISPOSITION DEMONSTRATION.

       Section 184 of the Housing and Community Development Act of 
     1987 (12 U.S.C. 1701z-11 note) is hereby repealed.

     SEC. 103. RTC MARKETING AND DISPOSITION OF MULTIFAMILY 
                   PROJECTS OWNED BY HUD.

       (a) Authorization.--The Secretary may carry out a 
     demonstration with not more than 50 unsubsidized multifamily 
     housing projects owned by the Secretary, using the RTC for 
     the marketing and disposition of the projects. Any such 
     demonstration shall be carried out pursuant to an agreement 
     between the RTC and the Secretary on such terms and 
     conditions as are acceptable to the RTC and the Secretary. 
     The RTC shall establish policies and procedures for marketing 
     and disposition, subject to review and approval by the 
     Secretary.
       (b) Rules Governing the Demonstration.--
       (1) In general.--Except as provided in paragraph (2), in 
     carrying out the provisions of this section, the RTC shall 
     dispose of unsubsidized multifamily housing projects pursuant 
     to the provisions of section 21A(c) of the Federal Home Loan 
     Bank Act.
       (2) Exception.--Notwithstanding paragraph (1), a very low-
     income tenant currently residing in a unit otherwise required 
     under subsection (e)(1)(D) of section 203 of the Housing and 
     Community Development Amendments of 1978 to receive project-
     based rental assistance under section 8, shall upon 
     disposition pay not more than the amount payable as rent 
     under section 3(a) of the United States Housing Act of 1937.
       (c) Determination of Projects Included.--In determining 
     which projects to include in the demonstration, the Secretary 
     and the RTC shall take into consideration--
       (1) the prior experience of the RTC in disposing of other 
     multifamily housing projects in the jurisdictions in which 
     such projects are located; and
       (2) such other factors as the Secretary and the RTC 
     determine to be appropriate.
       (d) Reimbursement.--The agreement entered into pursuant to 
     subsection (a) shall provide that the Secretary shall 
     reimburse the RTC for the direct costs associated with the 
     demonstration, including the costs of administration and 
     marketing, property management, and any repair and 
     rehabilitation. The Secretary may use proceeds from the sale 
     of the projects to reimburse the RTC for its costs.
       (e) Reports.--
       (1) Annual reports.--The Secretary and the RTC shall 
     jointly submit an annual report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Banking, Finance and Urban Affairs of the House of 
     Representatives detailing the progress of the demonstration.
       (2) Final report.--Not later than 3 months after the 
     completion of the demonstration, the Secretary shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Banking, Finance and Urban 
     Affairs of the House of Representatives a report describing 
     the results of the demonstration and any recommendations for 
     legislative action.
       (f) Termination.--The demonstration under this section 
     shall not extend beyond the termination date of the RTC.

     SEC. 104. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS AND 
                   CERTAIN MANAGING AGENTS OF MULTIFAMILY HOUSING 
                   PROJECTS.

       (a) Civil Money Penalties Against Multifamily Mortgagors.--
     Section 537 of the National Housing Act (12 U.S.C. 1735f-15) 
     is amended--
       (1) in subsection (b)(1), by inserting after ``mortgagor'' 
     the second place it appears the following: ``or general 
     partner of a partnership mortgagor'';
       (2) in subsection (c)--
       (A) by striking the heading and inserting the following:
       ``(c) Other Violations.--''; and
       (B) in paragraph (1)--
       (i) by striking ``The Secretary may'' and all that follows 
     through the colon and inserting the following:
       ``(A) Liable parties.--The Secretary may also impose a 
     civil money penalty under this section on--
       ``(i) any mortgagor of a property that includes 5 or more 
     living units and that has a mortgage insured, coinsured, or 
     held pursuant to this Act;
       ``(ii) the general partner of a partnership mortgagor of 
     such property; or
       ``(iii) any agent employed to manage the property that has 
     an identity of interest with the mortgagor or the general 
     partner of a partnership mortgagor of such property.
       ``(B) Violations.--A penalty may be imposed under this 
     paragraph for knowingly and materially taking any of the 
     following actions:'';
       (ii) in subparagraph (B), as redesignated, by redesignating 
     subparagraphs (A) through (L) as clauses (i) through (xii), 
     respectively; and
       (iii) by adding after clause (xii), as redesignated, the 
     following new clauses:
       ``(xiii) Failure to maintain the premises, accommodations, 
     and the grounds and equipment appurtenant thereto in good 
     repair and condition in accordance with regulations and 
     requirements of the Secretary, except that nothing in this 
     clause shall have the effect of altering the provisions of an 
     existing regulatory agreement or federally insured mortgage 
     on the property.
       ``(xiv) Failure, by a mortgagor or general partner of a 
     partnership mortgagor, to provide management for the project 
     that is acceptable to the Secretary pursuant to regulations 
     and requirements of the Secretary.''; and
       (iv) in the last sentence, by deleting ``of such 
     agreement'' and inserting ``of this subsection'';
       (3) in subsection (d)(1)(B), by inserting after 
     ``mortgagor'' the following: ``, general partner of a 
     partnership mortgagor, or identity of interest agent employed 
     to manage the property,'';
       (4) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(5) Payment of penalty.--No payment of a civil money 
     penalty levied under this section shall be payable out of 
     project income.'';
       (5) in subsection (e)(1), by deleting ``a mortgagor'' and 
     inserting ``an entity or person'';
       (6) in subsection (f), by inserting after ``mortgagor'' 
     each place such term appears the following: ``, general 
     partner of a partnership mortgagor, or identity of interest 
     agent employed to manage the property,'';
       (7) by striking the heading of subsection (f) and inserting 
     the following: ``Civil Money Penalties Against Multifamily 
     Mortgagors, General Partners of Partnership Mortgagors, and 
     Certain Managing Agents'';
       (8) in subsection (j), by striking ``all civil money'' and 
     all that follows through the period at the end and inserting 
     the following: ``the Secretary shall apply all civil money 
     penalties collected under this section, or any portion of 
     such penalties, to the fund established under section 201(j) 
     of the Housing and Community Development Amendments of 
     1978.''; and
       (9) by adding at the end the following new subsection:
       ``(k) Identity of Interest Managing Agent.--For purposes of 
     this section, the term `identity of interest managing agent' 
     means an ownership entity, or its general partner or 
     partners, which has an ownership interest in and which exerts 
     effective control over the property's ownership.''.
       (b) Implementation.--The Secretary shall implement the 
     amendments made by this section by regulation issued after 
     notice and opportunity for public comment. A proposed rule 
     shall be published not later than March 1, 1994. The notice 
     shall seek comments primarily as to the definition of the 
     terms `ownership interest in' and `effective control', as 
     such terms are used in the definition of identity of interest 
     managing agent.
       (c) Applicability of Amendments.--The amendments made by 
     subsection (a) shall apply only with respect to--
       (1) violations that occur on or after the effective date of 
     the final regulations implementing the amendments made by 
     this section; and
       (2) in the case of a continuing violation (as determined by 
     the Secretary), any portion of a violation that occurs on or 
     after such date.

     SEC. 105. MODELS FOR PROPERTY DISPOSITION.

       The Federal Housing Commissioner shall develop models which 
     shall be designed to assist States and units of general local 
     government in using other Federal programs for the purpose of 
     acquiring, rehabilitating, or otherwise participating in--
       (1) the disposition, pursuant to section 203 of the Housing 
     and Community Development Amendments of 1978, of multifamily 
     housing projects owned by the Secretary; or
       (2) the sale, pursuant to section 203 of the Housing and 
     Community Development Amendments of 1978, of multifamily 
     housing projects subject to mortgages held by the Secretary.

     SEC. 106. PREVENTING MORTGAGE DEFAULTS.

       (a) Multifamily Housing Planning and Investment 
     Strategies.--
       (1) Preparation of assessments for independent entities.--
     Section 402(a) of the Housing and Community Development Act 
     of 1992 (12 U.S.C. 1715-1a note) is amended by adding at the 
     end the following: ``The assessment shall be prepared by an 
     entity that does not have an identity of interest with the 
     owner.''.
       (2) Timing of submission of needs assessments.--Section 
     402(b) of the Housing and Community Development Act of 1992 
     (12 U.S.C. 17152-1a note) is amended to read as follows:
       ``(b) Timing.--To ensure that assessments for all covered 
     multifamily housing properties will be submitted on or before 
     the conclusion of fiscal year 1997, the Secretary shall 
     require the owners of such properties, including covered 
     multifamily housing properties for the elderly, to submit the 
     assessments for the properties in accordance with the 
     following schedule:
       ``(1) For fiscal year 1994, 10 percent of the aggregate 
     number of such properties.
       ``(2) For each of fiscal years 1995, 1996, and 1997, an 
     additional 30 percent of the aggregate number of such 
     properties.''.
       (3) Review of comprehensive needs assessments.--Section 
     404(d) of the Housing and Community Development Act of 1992 
     (12 U.S.C. 1715-1a note) is amended to read as follows:
       ``(d) Review.--
       ``(1) In general.--The Secretary shall review each 
     comprehensive needs assessment for completeness and adequacy 
     before the expiration of the 90-day period beginning on the 
     receipt of the assessment.
       ``(2) Incomplete or inadequate assessments.--If the 
     Secretary determines that the assessment is substantially 
     incomplete or inadequate, the Secretary shall--
       ``(A) provide the owner with a reasonable amount of time to 
     resubmit an amended assessment; and
       ``(B) indicate to the owner the portion of the original 
     assessment requiring completion or other revision.''.
       (4) Repeal of notice provision.--Section 404(f) of the 
     Housing and Community Development Act of 1992 (12 U.S.C. 
     1715-1a note) is hereby repealed.
       (5) Funding.--Title IV of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-1a note) is amended 
     by adding at the end the following new section:

     ``SEC. 409. FUNDING.

       ``(a) Allocation of Assistance.--Based upon needs 
     identified in comprehensive needs assessments, and subject to 
     otherwise applicable program requirements, including 
     selection criteria, the Secretary may allocate the following 
     assistance to owners of covered multifamily housing projects 
     and may provide such assistance on a noncompetitive basis:
       ``(1) Operating assistance and capital improvement 
     assistance for troubled multifamily housing projects pursuant 
     to section 201 of the Housing and Community Development 
     Amendments of 1978, except for assistance set aside under 
     section 201(n)(1).
       ``(2) Loan management assistance available pursuant to 
     section 8 of the United States Housing Act of 1937.
       ``(b) Operating Assistance and Capital Improvement 
     Assistance.--In providing assistance under subsection (a) the 
     Secretary shall use the selection criteria set forth in 
     section 201(n) of the Housing and Community Development 
     Amendments.
       ``(c) Amount of Assistance.--The Secretary may fund all or 
     only a portion of the needs identified in the capital needs 
     assessment of an owner selected to receive assistance under 
     this section.''.
       (b) Flexible Subsidy Program.--
       (1) Deletion of utility cost requirements.--Section 201(i) 
     of the Housing and Community Development Amendments of 1978 
     (12 U.S.C. 1715z-1a(i)) is hereby repealed.
       (2) Repeal of mandatory contribution from owner.--Section 
     201(k)(2) of the Housing and Community Development Amendments 
     of 1978 (12 U.S.C. 1715z-1a(k)(2)) is amended by striking ``, 
     except that'' and all that follows through ``such loan''.
       (3) Funding.--Section 201(n) of the Housing and Community 
     Development Amendments of 1978 (42 U.S.C. 1715z-1a(n)) is 
     amended to read as follows:
       ``(n)(1) For fiscal year 1994 only, in providing, and 
     contracting to provide, assistance for capital improvements 
     under this section, the Secretary shall set aside an amount, 
     as determined by the Secretary, for projects that are 
     eligible for incentives under section 224(b) of the Emergency 
     Low Income Housing Preservation Act of 1987, as such section 
     existed before the date of enactment of the Cranston-Gonzalez 
     National Affordable Housing Act. The Secretary may make such 
     assistance available on a noncompetitive basis.
       ``(2) Except as provided in paragraph (3), with respect to 
     assistance under this section not set aside for projects 
     under paragraph (1), the Secretary--
       ``(A) may award assistance on a noncompetitive basis; and
       ``(B) shall award assistance to eligible projects on the 
     basis of--
       ``(i) the extent to which the project is physically or 
     financially troubled, as evidenced by the comprehensive needs 
     assessment submitted in accordance with title IV of the 
     Housing and Community Development Act of 1992; and
       ``(ii) the extent to which such assistance is necessary and 
     reasonable to prevent the default of federally insured 
     mortgages.
       ``(3) The Secretary may make exceptions to selection 
     criteria set forth in paragraph (2) to permit the provision 
     of assistance to eligible projects based upon--
       ``(A) the extent to which such assistance is necessary to 
     prevent the imminent foreclosure or default of a project 
     whose owner has not submitted a comprehensive needs 
     assessment pursuant to title IV of the Housing and Community 
     Development Act of 1992;
       ``(B) the extent to which the project presents an imminent 
     threat to the life, health, and safety of project residents; 
     or
       ``(C) such other criteria as the Secretary may specify by 
     regulation or by notice printed in the Federal Register.
       ``(4) In providing assistance under this section, the 
     Secretary shall take into consideration--
       ``(A) the extent to which there is evidence that there will 
     be significant opportunities for residents (including a 
     resident council or resident management corporation, as 
     appropriate) to be involved in the management of the project 
     (except that this paragraph shall have no application to 
     projects that are owned as cooperatives); and
       ``(B) the extent to which there is evidence that the 
     project owner has provided competent management and complied 
     with all regulatory and administrative instructions 
     (including such instructions with respect to the 
     comprehensive servicing of multifamily projects as the 
     Secretary may issue).''.
       (c) Implementation and Effective Date for Subsections (a) 
     and (b).--
       (1) In general.--The Secretary shall, by notice published 
     in the Federal Register, which shall take effect upon 
     publication, establish such requirements as may be necessary 
     to implement the amendments made by subsections (a) and (b). 
     The notice shall invite public comments and, not later than 
     12 months after the date on which the notice is published, 
     the Secretary shall issue final regulations based on the 
     initial notice, taking into account any public comments 
     received.
       (2) Contents.--The notice and the regulations shall 
     describe the method by which the Secretary allocates 
     assistance in accordance with section 409 of the Housing and 
     Community Development Act of 1992 (as added by section 106(a) 
     of this Act) and paragraphs (2) and (3) of section 201(n) of 
     the Housing and Community Development Amendments of 1978.
       (3) Annual publications.--The Secretary shall publish 
     annually in the Federal Register--
       (A) the method by which the Secretary determines which 
     capital needs assessments will be received each year, in 
     accordance with sections 402(b) and 404(d) of the Housing and 
     Community Development Act of 1992; and
       (B) a list of all owners of covered multifamily housing 
     projects, by project, that have received funding under--
       (i) section 409 of the Housing and Community Development 
     Act of 1992 (as added by section 106(a) of this Act); or
       (ii) paragraphs (2) and (3) of section 201(n) of the 
     Housing and Community Development Amendments of 1978.
       (4) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by subsections (a) and (b) shall take 
     effect for amounts made available for fiscal year 1995.
       (B) Exception.--Notwithstanding subparagraph (A), section 
     201(n)(1) of the Housing and Community Development Amendments 
     of 1978 (as added by subsection (b)(3)) shall take effect on 
     the date of enactment of this Act.
       (d) Streamlined Refinancing.--As soon as practicable, the 
     Secretary shall implement a streamlined refinancing program 
     under the authority provided in section 223 of the National 
     Housing Act to prevent the default of mortgages insured by 
     the FHA which cover multifamily housing projects, as defined 
     in section 203(b) of the Housing and Community Development 
     Amendments of 1978.
       (e) Partial Payments of Claim.--
       (1) In general.--Notwithstanding any other provision of 
     law, if the Secretary is requested to accept assignment of a 
     mortgage insured by the Secretary that covers a multifamily 
     housing project, as such term is defined in section 203(b) of 
     the Housing and Community Development Amendments of 1978, and 
     the Secretary determines that partial payment would be less 
     costly to the Federal Government than other reasonable 
     alternatives for maintaining the low-income character of the 
     project, the Secretary may request the mortgagee, in lieu of 
     assignment, to--
       (A) accept partial payment of the claim under the mortgage 
     insurance contract; and
       (B) recast the mortgage, under such terms and conditions as 
     the Secretary may determine.
       (2) Condition.--As a condition to a partial claim payment 
     under this section, the mortgagor shall agree to repay to the 
     Secretary the amount of such payment and such obligation 
     shall be secured by a second mortgage on the property on such 
     terms and conditions as the Secretary may determine.
       (f) GAO Study on Prevention of Default.--
       (1) In general.--Not later than June 1, 1994, the 
     Comptroller General of the United States shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Banking, Finance and Urban 
     Affairs of the House of Representatives a report that 
     evaluates the adequacy of loan loss reserves in the General 
     Insurance and Special Risk Insurance Funds and presents 
     recommendations for the Secretary to prevent losses from 
     occurring.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) evaluate the factors considered in arriving at loss 
     estimates and determine whether other factors should be 
     considered;
       (B) determine the relative benefit of creating a new, 
     actuarially sound insurance fund for all new multifamily 
     housing insurance commitments; and
       (C) recommend alternatives to the Secretary's current 
     procedures for preventing the future default of multifamily 
     housing project mortgages insured under title II of the 
     National Housing Act.
       (g) GAO Study on Actuarial Soundness of Certain Insurance 
     Programs.--
       (1) In general.--Not later than June 1, 1994, the 
     Comptroller General of the United States shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Banking, Finance and Urban 
     Affairs of the House of Representatives a report that 
     evaluates, in connection with the General Insurance Fund, the 
     role and performance of the nursing home, hospital, and 
     retirement service center insurance programs.
       (2) Contents.--The reports submitted under paragraph (1) 
     shall--
       (A) evaluate the strategic importance of these insurance 
     programs to the mission of the FHA;
       (B) evaluate the impact of these insurance programs upon 
     the financial performance of the General Insurance Fund;
       (C) assess the potential losses expected under these 
     programs through fiscal year 1999;
       (D) evaluate the risk of these programs to the General 
     Insurance Fund in connection with changes in national health 
     care policy;
       (E) assess the ability of the FHA to manage these programs; 
     and
       (F) make recommendations for any necessary changes.
       (h) Annual Actuarial Review.--
       (1) Special risk insurance fund.--Section 238(c) of the 
     National Housing Act (12 U.S.C. 1715z-3(c)) is amended by 
     adding at the end the following new paragraph:
       ``(3) The Secretary shall undertake an annual review of the 
     actuarial soundness of each of the insurance programs 
     comprising the Special Risk Insurance Fund, and shall present 
     findings from such review to the Congress in the FHA Annual 
     Management Report.''.
       (2) General insurance fund.--Section 519 of the National 
     Housing Act (12 U.S.C. 1735c) is amended by adding at the end 
     the following new subsection:
       ``(g) Annual Actuarial Review.--The Secretary shall 
     undertake an annual review of the actuarial soundness of each 
     of the insurance programs comprising the General Insurance 
     Fund, and shall present findings from such review to the 
     Congress in the FHA Annual Management Report.''.
       (i) Alternative Uses for Prevention of Default.--
       (1) In general.--Subject to notice and comment from 
     existing tenants, to prevent the imminent default of a 
     multifamily housing project subject to a mortgage insured 
     under title II of the National Housing Act, the Secretary may 
     authorize the mortgagor to use the project for purposes not 
     contemplated by or permitted under the regulatory agreement, 
     if--
       (A) such other uses are acceptable to the Secretary;
       (B) such other uses would be otherwise insurable under 
     title II of the National Housing Act;
       (C) the outstanding principal balance on the mortgage 
     covering such project is not increased;
       (D) any financial benefit accruing to the mortgagor shall, 
     subject to the discretion of the Secretary, be applied to 
     project reserves or project rehabilitation; and
       (E) such other use serves a public purpose.
       (2) Displacement protection.--The Secretary shall--
       (A) make available tenant-based assistance under section 8 
     of the United States Housing Act of 1937 to any tenant 
     displaced as a result of actions taken by the Secretary 
     pursuant to paragraph (1); and
       (B) take such actions as the Secretary determines necessary 
     to ensure the successful use of any tenant-based assistance 
     provided under this paragraph.
       (3) Implementation.--The Secretary shall, by notice 
     published in the Federal Register, which shall take effect 
     upon publication, establish such requirements as may be 
     necessary to implement the amendments made by this 
     subsection. The notice shall invite public comments and, not 
     later than 12 months after the date on which the notice is 
     published, the Secretary shall issue final regulations based 
     on the initial notice, taking into account any public 
     comments received.
       (j) Mortgage Sale Demonstration.--The Secretary may carry 
     out a demonstration to test the feasibility of restructuring 
     and disposing of troubled multifamily mortgages held by the 
     Secretary through the establishment of partnerships between 
     public, private, and nonprofit entities.
       (k) National Interagency Task Force on Multifamily 
     Housing.--
       (1) Functions.--Section 543(e)(1) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1707 note) is 
     amended--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(F) make available appropriate information to the 
     Department of Housing and Urban Development that will assist 
     in preventing the future default of multifamily housing 
     project mortgages insured under title II of the National 
     Housing Act.''.
       (2) Use of appropriations authority.--Section 543(h) of the 
     Housing and Community Development Act of 1992 is amended by 
     inserting after the first sentence the following: ``The 
     Secretary may use any non-Federal or private funding or may 
     use the authority provided for salaries and expenses in 
     appropriations Acts for activities carried out under this 
     section.

     SEC. 107. INTEREST RATES ON ASSIGNED MORTGAGES.

       Section 7(i)(5) of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535(i)(5)) is amended by striking 
     the first semicolon, and all that follows through ``as 
     determined by the Secretary''.

     SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

       (a) Special Risk Insurance Fund.--Section 238(b) of the 
     National Housing Act (12 U.S.C. 1715z-3(b)) is amended by 
     striking the fifth sentence.
       (b) General Insurance Fund.--Section 519 of the National 
     Housing Act (12 U.S.C. 1735c) is amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsection (g) (as added by section 
     106(h)(2) of this Act) as subsection (f).
       (c) Multifamily Insurance Fund Appropriations.--Title V of 
     the National Housing Act (12 U.S.C. 1731a et seq.) is amended 
     by adding at the end the following new section:

     ``SEC. 541. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL AND 
                   SPECIAL RISK INSURANCE FUNDS.

       ``There are authorized to be appropriated $350,000,000 for 
     fiscal year 1994 and $360,500,000 for fiscal year 1995, to be 
     allocated in any manner that the Secretary determines 
     appropriate, for the following costs incurred in conjunction 
     with programs authorized under the General Insurance Fund, as 
     provided by section 519, and the Special Risk Insurance Fund, 
     as provided by section 238:
       ``(1) The cost to the Government, as defined in section 502 
     of the Congressional Budget Act, of new insurance 
     commitments.
       ``(2) The cost to the Government, as defined in section 502 
     of the Congressional Budget Act, of modifications to existing 
     loans, loan guarantees, or insurance commitments.
       ``(3) The cost to the Government, as defined in section 502 
     of the Congressional Budget Act, of loans provided under 
     section 203(f) of the Housing and Community Development 
     Amendments of 1978.
       ``(4) The costs of the rehabilitation of multifamily 
     housing projects (as defined in section 203(b) of the Housing 
     and Community Development Amendments of 1978) upon 
     disposition by the Secretary.''.
                 TITLE II--ENHANCED PROGRAM FLEXIBILITY
            Subtitle A--Office of Public and Indian Housing

     SEC. 201. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC 
                   HOUSING.

       (a) In General.--Section 24 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437v) is amended--
       (1) by amending subsection (b) to read as follows:
       ``(b) [RESERVED].'';
       (2) in subsection (c)(2), by striking ``$200,000'' and 
     inserting ``$500,000'';
       (3) in subsection (c)(3)--
       (A) by redesignating subparagraphs (E) through (I) as 
     subparagraphs (F) through (J), respectively;
       (B) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) planning for community service and support service 
     activities to be carried out by the public housing agency, 
     residents, members of the community, and other persons and 
     organizations willing to contribute to the social, economic, 
     or physical improvement of the community (community service 
     is a required element of the revitalization program);''; and
       (C) in subparagraph (H), as redesignated, by striking 
     ``designing a suitable replacement housing plan,'' and 
     inserting ``designing suitable relocation and replacement 
     housing plans,'';
       (4) in subsection (c)(4)--
       (A) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (B) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) a description of the community service and support 
     service planning activities to be carried out by the public 
     housing agency, residents, members of the community, and 
     other persons and organizations willing to contribute to the 
     social, economic, or physical improvement of the 
     community;'';
       (5) in subsection (c)(5)--
       (A) by striking subparagraph (E) and redesignating 
     subparagraphs (F) and (G) as subparagraphs (E) and (F), 
     accordingly;
       (B) in subparagraph (E), as redesignated, by inserting 
     before the semicolon ``, taking into account the condition of 
     the stock of the public housing agency as a whole''; and
       (C) by adding at the end the following:
     ``In making grants under this subsection, the Secretary may 
     select a lower-rated, approvable application over a higher-
     rated application to increase the national geographic 
     diversity among applications approved under this section.'';
       (6) in subsection (d)(2)--
       (A) by redesignating subparagraphs (E) through (I) as 
     subparagraphs (G) through (K), respectively;
       (B) by inserting after subparagraph (D) the following new 
     subparagraphs:
       ``(E) community service activities to be carried out by 
     residents, members of the community, and other persons 
     willing to contribute to the social, economic, or physical 
     improvement of the community (community service is a required 
     element of the revitalization program);
       ``(F) replacement of public housing units;''; and
       (C) in subparagraph (K), as redesignated--
       (i) by striking ``15 percent'' and inserting ``20 
     percent''; and
       (ii) by inserting before the period at the end the 
     following: ``, except that an amount equal to 15 percent of 
     the amount of any grant under this subsection used for 
     support services shall be contributed from non-Federal 
     sources (which contribution shall be in the form of cash, 
     administrative costs, and the reasonable value of in-kind 
     contributions and may include funding under title I of the 
     Housing and Community Development Act of 1974)'';
       (7) in subsection (d)(3)--
       (A) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (B) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) a description of the community service and support 
     service activities to be carried out by the public housing 
     agency, residents, members of the community, and other 
     persons and organizations willing to contribute to the 
     social, economic, or physical improvement of the 
     community;'';
       (8) in subsection (d)(4)--
       (A) in subparagraph (D), by inserting ``(with assistance 
     from the Department of Housing and Urban Development if 
     necessary)'' after ``applicant'';
       (B) by striking subparagraph (E) and redesignating 
     subparagraphs (F) and (G) as subparagraphs (E) and (F), 
     respectively;
       (C) in subparagraph (E), as redesignated, by inserting 
     before the semicolon ``, taking into account the condition of 
     the applicant's stock as a whole''; and
       (D) by adding at the end the following:
     ``In making grants under this subsection, the Secretary may 
     select a lower-rated, approvable application over a higher-
     rated application to increase the national geographic 
     diversity among applications approved under this section.'';
       (9) in subsection (e), by adding at the end the following 
     new paragraph:
       ``(3) Demolition and replacement.--
       ``(A) In general.--Notwithstanding any other applicable law 
     or regulation, a revitalization plan under this section may 
     include demolition and replacement on site or in the same 
     neighborhood if the number of replacement units provided in 
     the same neighborhood is fewer than the number of units 
     demolished as a result of the revitalization effort.
       ``(B) Tenant-based assistance.--Notwithstanding the 
     limitations contained in subparagraph (A)(v) or (C) of 
     section 18(b)(3), a public housing agency may replace not 
     more than one-third of the units demolished or disposed of 
     through a revitalization project under this section with 
     tenant-based assistance under section 8.'';
       (10) in subsection (h)--
       (A) by amending paragraph (5) to read as follows:
       ``(5) Severely distressed public housing.--The term 
     `severely distressed public housing' means a public housing 
     project or a building in a project--
       ``(A) that requires major redesign, reconstruction, 
     redevelopment, or partial or total demolition to correct 
     serious deficiencies in the original design (including 
     inappropriately high population density), deferred 
     maintenance, physical deterioration or obsolescence of major 
     systems, and other deficiencies in the physical plant of the 
     project; and
       ``(B) that either--
       ``(i)(I) is occupied predominantly by families with 
     children that have extremely low incomes, high rates of 
     unemployment, and extensive dependency on various forms of 
     public assistance; and
       ``(II) has high rates of vandalism and criminal activity 
     (including drug-related criminal activity); or
       ``(ii) that has a vacancy rate, as determined by the 
     Secretary, of 50 percent or more;
       ``(C) that cannot be revitalized through assistance under 
     other programs, such as the programs under sections 9 and 14, 
     or through other administrative means because of the 
     inadequacy of available funds; and
       ``(D) that, in the case of individual buildings, the 
     building is, in the Secretary's determination, sufficiently 
     separable from the remainder of the project to make use of 
     the building feasible for purposes of this section.''; and
       (B) by adding at the end the following new paragraphs:
       ``(6) Community service.--The term `community service' 
     means services provided on a volunteer or limited stipend 
     basis for the social, economic, or physical improvement of 
     the community to be served.
       ``(7) Support services.--The term `support services' 
     includes all activities designed to lead toward upward 
     mobility, self-sufficiency, and improved quality of life for 
     the residents of the project, such as literacy training, job 
     training, day care, and economic development. Such activities 
     may allow for the participation of residents of the 
     neighborhood.''; and
       (11) in subsection (i)--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (b) Conforming Amendment.--The first sentence of section 
     25(m)(1) of the United States Housing Act of 1937 (42 U.S.C. 
     1437w(m)(1)) is amended to read as follows:
       ``(1) The term `eligible housing' means a public housing 
     project, or one or more buildings within a project, that is 
     owned or operated by a public housing agency that has been 
     troubled for not less than 3 years and that, as determined by 
     the Secretary, has failed to make substantial progress toward 
     effective management.''.
       (c) Use of Tenant-Based Assistance for Replacement 
     Housing.--Section 18(b)(3)(C)(i) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437p(b)(3)(C)(i)) is amended by 
     striking ``15-year''.
       (d) Replacement Housing Outside the Jurisdiction of the 
     PHA.--Section 18(b)(3) of the United States Housing Act of 
     1937 (42 U.S.C. 1437p(b)(3)), as amended by subsection (c), 
     is amended--
       (1) by redesignating subparagraphs (D) through (H) as 
     subparagraphs (E) through (I), respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) may provide that all or part of such additional 
     dwelling units may be located outside of the jurisdiction of 
     the public housing agency (the `original agency') if--
       ``(i) the location is in the same housing market area as 
     the original agency, as determined by the Secretary;
       ``(ii) the plan contains an agreement between the original 
     agency and the public housing agency in the alternate 
     location or other public or private entity that will be 
     responsible for providing the additional units in the 
     alternate location (`alternate agency or entity') that the 
     alternate agency or entity will, with respect to the dwelling 
     units involved--
       ``(I) provide the dwelling units in accordance with 
     subparagraph (A);
       ``(II) complete the plan on schedule in accordance with 
     subparagraph (F);
       ``(III) meet the requirements of subparagraph (G) and the 
     maximum rent provisions of subparagraph (H); and
       ``(IV) not impose a local residency preference on any 
     resident of the jurisdiction of the original agency for 
     purposes of admission to any such units; and
       ``(iii) the arrangement is approved by the unit of general 
     local government for the jurisdiction in which the additional 
     units will be located;''.

     SEC. 202. DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO 
                   OBTAIN EMPLOYMENT.

       (a) In General.--Section 3 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a) is amended--
       (1) by striking the undesignated paragraph at the end of 
     subsection (c)(3) (as added by section 515(b) of the 
     Cranston-Gonzalez National Affordable Housing Act); and
       (2) by adding at the end the following new subsection:
       ``(d) Disallowance of Earned Income From Public Housing 
     Rent Determinations.--Notwithstanding any other provision of 
     law, the rent payable under subsection (a) for any public 
     housing unit by a family whose income increases as a result 
     of employment of a member of the family who was previously 
     unemployed for one or more years (including a family whose 
     income increases as a result of the participation of a family 
     member in the Family Self-Sufficiency program or other job 
     training program) shall not be increased for a period of 18 
     months, beginning with the commencement of employment as a 
     result of the increased income due to such employment. After 
     the expiration of the 18-month period, rent increases due to 
     the continued employment of such family member shall be 
     limited to 10 percent per year. In no case shall rent exceed 
     the amount determined under subsection (a).''.
       (b) Applicability of Amendment.--Notwithstanding the 
     amendment made by subsection (a), any resident of public 
     housing participating in the program under the authority 
     contained in the undesignated paragraph at the end of section 
     3(c)(3) of the United States Housing Act of 1937 as such 
     paragraph existed before the date of enactment of this 
     subsection shall continue to be governed by such authority.

     SEC. 203. CEILING RENTS BASED ON REASONABLE RENTAL VALUE.

       (a) Amendment.--Section 3(a)(2)(A)(iii) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(A)(iii)) is 
     amended to read as follows:
       ``(iii) is not less than the reasonable rental value of the 
     unit, as determined by the Secretary.''.
       (b) Regulations.--
       (1) In general.--The Secretary shall, by regulation, after 
     notice and an opportunity for public comment, establish such 
     requirements as may be necessary to carry out the provisions 
     of section 3(a)(2)(A) of the United States Housing Act of 
     1937, as amended by subsection (a).
       (2) Applicability.--Except in the case of an Indian housing 
     authority, the regulations issued pursuant to paragraph (1) 
     shall not apply to scattered site public housing units.
       (3) Transition rule.--Prior to the issuance of final 
     regulations under paragraph (1), a public housing agency may 
     implement ceiling rents which shall be--
       (A) determined in accordance with section 3(a)(2)(A) of the 
     United States Housing Act of 1937, as such section existed 
     before the date of enactment of this Act; or
       (B) equal to the 95th percentile of the rent paid for a 
     unit of comparable size by tenants in the same project or a 
     group of comparable projects totaling 50 units or more.

     SEC. 204. RESIDENT MANAGEMENT PROGRAM.

       Section 20(f) of the United States Housing Act of 1937 (42 
     U.S.C. 1437r(f)) is amended--
       (1) in paragraph (2), by striking ``$100,000'' and 
     inserting ``$250,000''; and
       (2) in paragraph (3), by adding at the end the following: 
     ``The Secretary may use not more than 10 percent of the 
     amounts made available under this subsection for program 
     monitoring and evaluation, technical assistance, and 
     information dissemination.''.
        Subtitle B--Office of Community Planning and Development

     SEC. 211. ECONOMIC DEVELOPMENT INITIATIVE.

       (a) Section 108 Eligible Activities.--
       (1) In general.--Section 108(a) of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5308(a)) is 
     amended--
       (A) in the first sentence--
       (i) by striking ``or'' after ``section 105(a);''; and
       (ii) by inserting before the period the following: ``; (5) 
     the acquisition, construction, reconstruction, or 
     installation of public facilities (except for buildings for 
     the general conduct of government); or (6) in the case of 
     colonias, public works and site or other improvements''; and
       (B) by striking the second sentence and inserting the 
     following: ``A guarantee under this section (including a 
     guarantee combined with a grant under subsection (q)) may be 
     used to assist a grantee in obtaining financing only if the 
     grantee has made efforts to obtain the financing without the 
     use of the guarantee (and, if applicable, the grant) and 
     cannot complete the financing consistent with the timely 
     execution of the proposed activities and projects without the 
     guarantee (or, if applicable, the grant).''.
       (2) Definition.--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 new paragraph:
       ``(24) The term `colonia' means any identifiable community 
     that--
       ``(A) is in the State of Arizona, California, New Mexico, 
     or Texas;
       ``(B) is in the United States-Mexico border region;
       ``(C) is determined to be a colonia on the basis of 
     objective criteria, including lack of potable water supply, 
     lack of adequate sewage systems, and lack of decent, safe, 
     and sanitary housing; and
       ``(D) was in existence as a colonia before the date of the 
     enactment of the Cranston-Gonzalez National Affordable 
     Housing Act.''.
       (b) Economic Development Grants.--
       (1) In general.--Section 108 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5308) is amended by adding 
     at the end the following new subsection:
       ``(q) Economic Development Grants.--
       ``(1) Authorization.--The Secretary may make grants in 
     connection with notes or other obligations guaranteed under 
     this section to eligible public entities for the purpose of 
     enhancing the security of loans guaranteed under this section 
     or improving the viability of projects financed with loans 
     guaranteed under this section.
       ``(2) Eligible activities.--Assistance under this 
     subsection may be used for the purposes of and in conjunction 
     with projects and activities assisted under subsection (a).
       ``(3) Applications.--Applications for assistance under this 
     subsection shall be submitted by eligible public entities in 
     the form and in accordance with the procedures established by 
     the Secretary. Eligible public entities may apply for grants 
     only in conjunction with a request for guarantee under 
     subsection (a).
       ``(4) Selection criteria.--The Secretary shall establish 
     criteria for awarding assistance under this subsection. Such 
     criteria shall include--
       ``(A) the extent of need for such assistance;
       ``(B) the level of distress in the community to be served 
     and in the jurisdiction applying for assistance;
       ``(C) the quality of the plan proposed and the capacity or 
     potential capacity of the applicant to successfully carry out 
     the plan; and
       ``(D) such other factors as the Secretary determines to be 
     appropriate.''.
       (2) Conforming amendment.--Title I of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is 
     amended--
       (A) in section 101(c) in the second sentence, by inserting 
     ``or a grant'' after ``guarantee''; and
       (B) in section 104(b)(3), by inserting ``or a grant'' after 
     ``guarantee''.
       (c) Use of UDAG Recaptures.--Section 119(o) of the Housing 
     and Community Development Act of 1974 (42 U.S.C. 5318(o)) is 
     amended by inserting before the period the following: ``, 
     except that amounts available to the Secretary for use under 
     this subsection as of October 1, 1993, and amounts released 
     to the Secretary pursuant to subsection (t) may be used to 
     provide grants under section 108(q).''.
       (d) UDAG Amnesty Program.--
       (1) Amendment.--Section 119 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5318) is amended by adding 
     at the end the following new subsection:
       ``(t) UDAG Amnesty Program.--If a grant or a portion of a 
     grant under this section remains unexpended as of the 
     issuance of a notice implementing this subsection, the 
     grantee may enter into an agreement, as provided under this 
     subsection, with the Secretary to receive a percentage of the 
     grant amount and relinquish all claims to the balance of the 
     grant within 90 days of the issuance of notice implementing 
     this subsection (or such later date as the Secretary may 
     approve). The Secretary shall not recapture any funds 
     obligated pursuant to this section during a period beginning 
     on the date of enactment of the Housing and Community 
     Development Act of 1993 until 90 days after the issuance of a 
     notice implementing this subsection. A grantee may receive as 
     a grant under this subsection--
       ``(1) 33 percent of such unexpended amounts if--
       ``(A) the grantee agrees to expend not less than one-half 
     of the amount received for activities authorized pursuant to 
     section 108(q) and to expend such funds in conjunction with a 
     loan guarantee made under section 108 at least equal to twice 
     the amount of the funds received; and
       ``(B)(i) the remainder of the amount received is used for 
     economic development activities eligible under title I of 
     this Act; and
       ``(ii) except when waived by the Secretary in the case of a 
     severely distressed jurisdiction, not more than one-half of 
     the costs of activities under subparagraph (B) are derived 
     from such unexpended amounts; or
       ``(2) 25 percent of such unexpended amounts if--
       ``(A) the grantee agrees to expend such funds for economic 
     development activities eligible under title I of this Act; 
     and
       ``(B) except when waived by the Secretary in the case of a 
     severely distressed jurisdiction, not more than one-half of 
     the costs of such activities are derived from such unexpended 
     amount.''.
       (2) Implementation.--Notwithstanding subsection (f), not 
     later than 10 days after the date of enactment of this Act, 
     the Secretary shall, by notice published in the Federal 
     Register, which shall take effect upon publication, establish 
     such requirements as may be necessary to implement the 
     amendments made by this subsection.
       (e) Guarantee of Obligations Backed by Section 108 Loans.--
     Section 108 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5308), as amended by subsection (b), is 
     amended by adding at the end the following new subsection:
       ``(r) Guarantee of Obligations Backed by Section 108 
     Loans.--
       ``(1) Authorization.--The Secretary may, upon such terms 
     and conditions as the Secretary deems appropriate, guarantee 
     the timely payment of the principal of and interest on trust 
     certificates or other obligations that--
       ``(A) are offered by the Secretary, or by any other offeror 
     approved for purposes of this subsection by the Secretary; 
     and
       ``(B) are based on and backed by a trust or pool composed 
     of notes or other obligations guaranteed by the Secretary 
     under this section.
       ``(2) Full faith and credit of the united states.--
     Subsection (f) shall apply to any guarantee under this 
     subsection.
       ``(3) Subrogation.--If the Secretary pays a claim under a 
     guarantee issued under this section, the Secretary shall be 
     subrogated fully to the rights satisfied by such payment.
       ``(4) Powers of the secretary.--No Federal, State, or local 
     law shall preclude or limit the exercise by the Secretary 
     of--
       ``(A) the power to contract with respect to public 
     offerings and other sales of notes, trust certificates, and 
     other obligations guaranteed under this section upon such 
     terms and conditions as the Secretary deems appropriate;
       ``(B) the right to enforce by any means deemed appropriate 
     by the Secretary any such contract; and
       ``(C) the Secretary's ownership rights, as applicable, in 
     notes, certificates, or other obligations guaranteed under 
     this section, or constituting the trust or pool against which 
     trust certificates or other obligations guaranteed under this 
     section are offered.''.
       (f) Effective Date.--The Secretary shall, by notice 
     published in the Federal Register, which shall take effect 
     upon publication, establish such requirements as may be 
     necessary to implement the amendments made by this section. 
     The notice shall invite public comments and, not later than 
     12 months after the date on which the notice is published, 
     the Secretary shall issue final regulations based on the 
     initial notice, taking into account any public comments 
     received.

     SEC. 212. HOME INVESTMENT PARTNERSHIPS.

       (a) Participation by State Agencies or Instrumentalities.--
     Section 104(2) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12704(2)) is amended by inserting 
     before the period at the end the following: ``, or any agency 
     or instrumentality thereof that is established pursuant to 
     legislation and designated by the chief executive to act on 
     behalf of the State with regard to the provisions of this 
     Act''.
       (b) Simplify Program-Wide Income Targeting for Home Rental 
     Housing.--Section 214(1) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12744(1)) is amended by 
     striking ``such funds are invested with respect to dwelling 
     units that are occupied by'' each place such term appears and 
     inserting ``(i) the families receiving such rental assistance 
     are, or (ii) the dwelling units assisted with such funds are 
     occupied by'' in each such place.
       (c) Remove First-Time Homebuyer Limitation for Home 
     Units.--Section 215(b) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12745(b)) is amended by 
     striking paragraph (3) and redesignating paragraphs (4) and 
     (5) as paragraphs (3) and (4), respectively.
       (d) Simplify Resale Provisions.--Section 215(b)(3)(B) of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12745(b)(4)(B)), as redesignated by subsection (c), is 
     amended by striking ``subsection'' and inserting ``title''.
       (e) Stabilization of Home Funding Thresholds.--The 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12701 et seq.) is amended--
       (1) in section 216, by striking paragraph (10);
       (2) in section 217(b), by striking paragraph (4);
       (3) in section 217(b)(3)--
       (A) in the first sentence, by striking ``only those 
     jurisdictions'' and all that follows through ``allocation'' 
     and inserting ``jurisdictions that are not participating 
     jurisdictions that are allocated an amount of $500,000 or 
     more and jurisdictions that are participating jurisdictions 
     shall receive an allocation''; and
       (B) in the last sentence, by striking ``, except as 
     provided in paragraph (4)''; and
       (4) in section 216--
       (A) in paragraph (3)(A), by striking ``Except as provided 
     in paragraph (10), a jurisdiction'' and inserting ``A 
     jurisdiction''; and
       (B) in paragraph (9)(B), by striking ``, except as provided 
     in paragraph (10)''.
       (f) Comprehensive Affordable Housing Strategy.--
       (1) HOME program.--Section 218(d) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12748(d)) is 
     amended in the first sentence, by inserting ``that it is 
     following a current housing affordability strategy that has 
     been approved by the Secretary in accordance with section 
     105, and'' after ``certification''.
       (2) Homeless assistance programs.--Section 401 of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361) 
     is amended to read as follows:

     ``SEC. 401. HOUSING AFFORDABILITY STRATEGY.

       ``(a) Requirement To Follow a CHAS.--Assistance may be made 
     available under subtitle B to metropolitan cities, urban 
     counties, and States receiving a formula amount under section 
     413, only if the jurisdiction certifies that it is following 
     a current housing affordability strategy that has been 
     approved by the Secretary in accordance with section 105 of 
     the Cranston-Gonzalez National Affordable Housing Act.
       ``(b) Requirement for Consistency With CHAS.--Assistance 
     may be made available under this title only if the 
     application contains a certification that the proposed 
     project or activities are consistent with the housing 
     affordability strategy of the State or unit of general local 
     government in which the project is located. The certification 
     shall be from the public official responsible for submitting 
     the strategy for the jurisdiction.''.
       (3) Conforming changes.--Title IV of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11361 et seq.) is 
     amended by striking sections 426(a)(2)(F), 434(a)(10), and 
     454(b)(9).
       (g) HOME Matching Requirements.--Section 220(a) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12750(a)) is amended to read as follows:
       ``(a) Contribution.--Each participating jurisdiction shall 
     make contributions to housing that qualifies as affordable 
     housing under this title that total, throughout a fiscal 
     year, not less than 25 percent of the funds drawn from the 
     jurisdiction's HOME Investment Trust Fund in that fiscal 
     year. Such contribution shall be in addition to any amounts 
     made available under section 216(3)(A)(ii).''.
       (h) Separate Audit Requirement for the HOME Program.--
     Section 283 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12833) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 283. AUDITS BY THE COMPTROLLER GENERAL.'';

       (2) by striking subsection (a);
       (3) in subsection (b)--
       (A) by striking ``(b) Audits by the Comptroller General.--
     ''; and
       (B) by redesignating paragraphs (1) and (2) as subsections 
     (a) and (b), respectively; and
       (4) in subsection (a), as redesignated by paragraph (3), by 
     striking the second sentence.
       (i) Home Environmental Review Amendments.--Section 288 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12838) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``participating 
     jurisdictions'' and inserting ``jurisdictions, Indian tribes, 
     or insular areas''; and
       (B) by adding at the end the following: ``The regulations 
     shall--
       ``(1) provide for the monitoring of environmental reviews 
     performed under this section;
       ``(2) at the discretion of the Secretary, facilitate 
     training for the performance of such reviews; and
       ``(3) establish criteria for the suspension or termination 
     of the assumption under this section.
     The Secretary's duty under this subsection shall not be 
     construed to limit any responsibility assumed by a State or 
     unit of general local government with respect to any 
     particular release of funds.'';
       (2) in subsection (b) in the first sentence, by striking 
     ``participating jurisdiction'' and inserting ``jurisdiction, 
     Indian tribe, or insular area'';
       (3) in subsection (c)(4), by striking ``participating 
     jurisdiction'' and inserting ``jurisdiction, Indian tribe, or 
     insular area''; and
       (4) in subsection (d), by striking ``Assistance to a 
     State.--In the case of assistance to States'' and inserting 
     the following: ``Assistance to Units of General Local 
     Government From a State.--In the case of assistance to units 
     of general local government from a State''.
       (j) Use of CDBG Funds for Home Administrative Expenses.--
     Section 105(a)(13) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by inserting 
     after ``charges related to'' the following: ``(A) 
     administering the HOME program under title II of the 
     Cranston-Gonzalez National Affordable Housing Act; and (B)''.
       (k) Project Delivery Costs.--Section 105(a)(21) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5305(a)(21)) is amended--
       (1) by inserting ``in connection with tenant-based 
     assistance and affordable housing projects assisted under 
     title II of the Cranston-Gonzalez National Affordable Housing 
     Act'' after ``housing counseling''; and
       (2) by striking ``authorized'' and all that follows through 
     ``any law'' and inserting ``assisted under title II of the 
     Cranston-Gonzalez National Affordable Housing Act''.

     SEC. 213. HOPE MATCH REQUIREMENT.

       Section 443(c)(1) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12893(c)(1)) is amended by 
     striking ``33'' and inserting ``25''.

     SEC. 214. FLEXIBILITY OF CDBG PROGRAM FOR DISASTER AREAS.

       Title I of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 122. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

       ``For the duration of time during which an area has been 
     declared a disaster area by the President under title IV of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act, the Secretary may suspend all requirements 
     for purposes of assistance under section 106 for that area, 
     except for those related to public notice of funding 
     availability, nondiscrimination, fair housing, labor 
     standards, environmental standards, and requirements that 
     activities benefit persons of low- and moderate-income.''.

     SEC. 215. FLEXIBILITY OF HOME PROGRAM FOR DISASTER AREAS.

       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 section:

     ``SEC. 290. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

       ``For the duration of time during which an area has been 
     declared a disaster area by the President under title IV of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act, the Secretary may suspend all requirements 
     for purposes of assistance under this title for that area, 
     except for those related to public notice of funding 
     availability, nondiscrimination, fair housing, labor 
     standards, environmental standards, and low-income housing 
     affordability.''.
            Subtitle C--Community Partnerships Against Crime

     SEC. 221. COMPAC PROGRAM.

       (a) Conforming Provisions.--Section 5001 of the Anti-Drug 
     Abuse Act of 1988 (42 U.S.C. 11901) is amended in the table 
     of contents--
       (1) by striking the item relating to the heading for 
     chapter 2 and inserting the following:

          ``Chapter 2--Community Partnerships Against Crime'';

       (2) by striking the item relating to section 5122 and 
     inserting the following:

``Sec. 5122. Purposes.'';

     and
       (3) by adding the following after the item relating to 
     section 5130:

``Sec. 5131. Technical assistance.''.

       (b) Short Title, Purposes, and Authority To Make Grants.--
     The Public and Assisted Housing Drug Elimination Act of 1990 
     (42 U.S.C. 11901 et seq.) is amended by striking the chapter 
     heading for chapter 2, and by striking sections 5121, 5122, 
     and 5123 and inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

     ``SEC. 5121. SHORT TITLE.

       ``This chapter may be cited as the `Community Partnerships 
     Against Crime Act of 1993'.

     ``SEC. 5122. PURPOSES.

       ``The purposes of this chapter are to--
       ``(1) improve the quality of life for law-abiding public 
     housing residents by reducing the levels of fear, violence, 
     and crime in their communities;
       ``(2) expand and enhance the Federal Government's 
     commitment to eliminating crime in public housing;
       ``(3) broaden the scope of the Public and Assisted Housing 
     Drug Elimination Act of 1990 to apply to all types of crime, 
     and not simply crime that is drug-related;
       ``(4) target opportunities for long-term commitments of 
     funding primarily to public housing agencies with serious 
     crime problems;
       ``(5) encourage the involvement of a broad range of 
     community-based groups, and residents of neighboring housing 
     that is owned or assisted by the Secretary, in the 
     development and implementation of anti-crime plans;
       ``(6) reduce crime and disorder in and around public 
     housing through the expansion of community-oriented policing 
     activities and problem solving;
       ``(7) provide training, information services, and other 
     technical assistance to program participants; and
       ``(8) establish a standardized assessment system to 
     evaluate need among public housing agencies, and to measure 
     progress in reaching crime reduction goals.

     ``SEC. 5123. AUTHORITY TO MAKE GRANTS.

       ``The Secretary of Housing and Urban Development, in 
     accordance with the provisions of this chapter, may make 
     grants, for use in eliminating crime in and around public and 
     other federally assisted low-income housing projects (1) to 
     public housing agencies (including Indian housing 
     authorities), and (2) to private, for profit, and nonprofit 
     owners of federally assisted low-income housing. In designing 
     the program, the Secretary shall consult with the Attorney 
     General.''.
       (c) Eligible Activities.--Section 5124(a) of the Public and 
     Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
     11903(a)) is amended--
       (1) in the introductory material preceding paragraph (1), 
     by inserting ``and around'' after ``used in'';
       (2) in paragraph (3), by inserting ``, such as fencing, 
     lighting, locking, and surveillance systems'' before the 
     semicolon;
       (3) in paragraph (4), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) to investigate crime; and'';
       (4) in paragraph (6)--
       (A) by striking ``in and around public or other federally 
     assisted low-income housing projects''; and
       (B) by striking ``and'' after the semicolon;
       (5) in paragraph (7)--
       (A) by striking ``where a public housing agency receives a 
     grant,'';
       (B) by striking ``drug abuse'' and inserting ``crime''; and
       (C) by striking the period at the end and inserting a 
     semicolon; and
       (6) by adding at the end the following new paragraphs:
       ``(8) the employment or utilization of one or more 
     individuals, including law enforcement officers, made 
     available by contract or other cooperative arrangement with 
     State or local law enforcement agencies, to engage in 
     community policing involving interaction with members of the 
     community on proactive crime control and prevention;
       ``(9) youth initiatives, such as activities involving 
     training, education, after school programs, cultural 
     programs, recreation and sports, career planning, and 
     entrepreneurship and employment; and
       ``(10) resident service programs, such as job training, 
     education programs, drug and alcohol treatment, and other 
     appropriate social services that address the contributing 
     factors of crime.''.
       (d) Applications.--Section 5125 of the Public and Assisted 
     Housing Drug Elimination Act of 1990 (42 U.S.C. 11904) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``To receive a grant'' and inserting the 
     following:
       ``(1) Applications.--To receive a grant'';
       (B) in the second sentence, by striking ``drug-related 
     crime on the premises of'' and inserting the following: 
     ``crime in and around''; and
       (C) by adding at the end the following new paragraphs:
       ``(2) One-year renewable grants.--
       ``(A) In general.--Eligible applicants may submit an 
     application for a 1-year grant under this chapter that, 
     subject to the availability of appropriated amounts, shall be 
     renewed annually for a period of not more than 4 years, if 
     the Secretary finds, after an annual or more frequent 
     performance review, that the public housing agency is 
     performing under the terms of the grant and applicable laws 
     in a satisfactory manner and meets such other requirements as 
     the Secretary may prescribe.
       ``(B) Preference.--The Secretary shall accord a preference 
     to applicants for grants under this paragraph if the grant is 
     to be used to continue or expand activities eligible for 
     assistance under this chapter that have received previous 
     assistance either under this chapter, as it existed prior to 
     the enactment of the Housing and Community Development Act of 
     1993, or under section 14 of the United States Housing Act of 
     1937. Such preference shall not preclude the selection by the 
     Secretary of other meritorious applications, particularly 
     applications which address urgent or severe crime problems or 
     which demonstrate especially promising approaches to reducing 
     crime. Such preference shall not be construed to require 
     continuation of activities determined by the Secretary to be 
     unworthy of continuation.
       ``(3) Public housing agencies that have especially severe 
     crime problems.--The Secretary shall, by regulation issued 
     after notice and opportunity for public comment, set forth 
     criteria for establishing a class of public housing agencies 
     that have especially severe crime problems. The Secretary may 
     allocate a portion of the annual appropriation for this 
     program for public housing agencies in this class.''.
       (2) in subsection (b)--
       (A) by striking the introductory material preceding 
     paragraph (1) and inserting the following: ``The Secretary 
     shall approve applications under subsection (a)(2) that are 
     not subject to a preference under subsection (a)(2)(B) on the 
     basis of--'';
       (B) in paragraph (1), by striking ``drug-related crime 
     problem in'' and inserting the following: ``crime problem in 
     and around'';
       (C) in paragraph (2), by inserting immediately after 
     ``crime problem in'' the following: ``and around''; and
       (D) in paragraph (4), by inserting after ``local 
     government'' the following: ``, local community-based 
     nonprofit organizations, local resident organizations that 
     represent the residents of neighboring projects that are 
     owned or assisted by the Secretary,'';
       (3) in subsection (c)(2), by striking ``drug-related'' each 
     place it appears; and
       (4) by striking subsection (d).
       (e) Definitions.--Section 5126 of the Public and Assisted 
     Housing Drug Elimination Act of 1990 (42 U.S.C. 11905) is 
     amended by striking paragraphs (1) and (2), and redesignating 
     paragraphs (3) and (4) as paragraphs (1) and (2), 
     respectively.
       (f) Implementation.--Section 5127 of the Public and 
     Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
     11906) is amended by striking ``Cranston-Gonzalez National 
     Affordable Housing Act'' and inserting ``Housing and 
     Community Development Act of 1993''.
       (g) Reports.--Section 5128 of the Public and Assisted 
     Housing Drug Elimination Act of 1990 (42 U.S.C. 11907) is 
     amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(a) Grantee Reports.--The Secretary'';
       (2) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (3) by adding at the end the following new subsection:
       ``(b) HUD Reports.--The Secretary shall submit a report to 
     the Congress describing the system used to distribute funds 
     to grantees under this section. Such report shall include, at 
     a minimum--
       ``(1) a description of the criteria used to establish the 
     class of public housing agencies with especially severe crime 
     problems and a list of such agencies;
       ``(2) the methodology used to distribute funds among the 
     public housing agencies on the list created under paragraph 
     (1); and
       ``(3) the Secretary's recommendations for any change to the 
     method of distribution of funds.''.
       (h) Authorization of Appropriations.--Section 5130 of the 
     Public and Assisted Housing Drug Elimination Act of 1990 (42 
     U.S.C. 11909) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``$175,000,000 for fiscal year 1993'' and all that follows 
     through the end of the sentence and inserting ``$265,000,000 
     for fiscal year 1994 and $325,000,000 for fiscal year 
     1995.''; and
       (2) in subsection (b)--
       (A) in the heading, by striking ``Set-Asides'' and 
     inserting ``Set-Aside''; and
       (B) by striking the second sentence.
       (i) Repeal.--Section 520(k) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 11908) is hereby 
     repealed.
       (j) Technical Assistance.--The Public and Assisted Housing 
     Drug Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is 
     further amended by adding at the end the following new 
     section:

     ``SEC. 5131. TECHNICAL ASSISTANCE.

       ``Of the amounts appropriated annually for each of fiscal 
     years 1994 and 1995 to carry out this chapter, the Secretary 
     shall use not more than $10,000,000, directly or indirectly, 
     under grants, contracts, or cooperative agreements, to 
     provide training, information services, and other technical 
     assistance to public housing agencies and other entities with 
     respect to their participation in the program authorized by 
     this chapter. Such technical assistance may include the 
     establishment and operation of the clearinghouse on drug 
     abuse in public housing and the regional training program on 
     drug abuse in public housing under sections 5143 and 5144 of 
     this Act. The Secretary is also authorized to use the 
     foregoing amounts for obtaining assistance in establishing 
     and managing assessment and evaluation criteria and 
     specifications, and obtaining the opinions of experts in 
     relevant fields.''.
               TITLE III--TECHNICAL AND OTHER AMENDMENTS
                Subtitle A--Public and Assisted Housing

     SEC. 301. CORRECTION TO DEFINITION OF FAMILY.

       The first sentence of section 3(b)(3)(B) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(B)) is 
     amended--
       (1) by striking ``means'' and inserting ``includes''; and
       (2) by inserting ``and'' immediately after ``children,''.

     SEC. 302. IDENTIFICATION OF CIAP REPLACEMENT NEEDS.

       Section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 1437l) is amended--
       (1) in subsection (d)--
       (A) by striking paragraph (2); and
       (B) in paragraph (4)--
       (i) by striking ``and replacements,''; and
       (ii) by striking ``(1), (2), and (3)'' and inserting ``(1) 
     and (3)''; and
       (2) in subsection (f)(1)--
       (A) by striking subparagraph (B); and
       (B) in subparagraph (D), by striking ``(1), (2), and (3)'' 
     and inserting ``(1) and (3)''.

     SEC. 303. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO 
                   INDIAN HOUSING.

       (a) Amendment.--Section 201(b) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437aa(b)) is amended to read as 
     follows:
       ``(b) Applicability of Title I.--Except as otherwise 
     provided by law, the provisions of title I shall apply to 
     low-income housing developed or operated pursuant to a 
     contract between the Secretary and an Indian housing 
     authority.''.
       (b) Applicability of Amendment.--The amendment made by 
     subsection (a) shall not affect provisions of the United 
     States Housing Act of 1937 that were made applicable to 
     public housing developed or operated pursuant to a contract 
     between the Secretary and an Indian housing authority in 
     accordance with section 201(b)(2) of such Act, as such 
     section existed before the effective date of this section.
       (c) Applicability of Housing and Community Development Act 
     of 1992.--Sections 103(a)(1), 112, 114, 116, 118, 903, and 
     927 of the Housing and Community Development Act of 1992 
     shall apply to public housing developed or operated pursuant 
     to a contract between the Secretary and an Indian housing 
     authority.

     SEC. 304. PROJECT-BASED ACCOUNTING.

       Section 6(c)(4)(E) of the United States Housing Act of 1937 
     (42 U.S.C. 1437d(c)(4)(E)) is amended by striking ``250'' and 
     inserting ``500''.

     SEC. 305. OPERATING SUBSIDY ADJUSTMENTS FOR ANTICIPATED FRAUD 
                   RECOVERIES.

       Section 9(a) of the United States Housing Act of 1937 (42 
     U.S.C. 1437g(a)) is amended by adding at the end the 
     following new paragraph:
       ``(4) Adjustments to a public housing agency's operating 
     subsidy made by the Secretary under this section shall 
     reflect actual changes in rental income collections resulting 
     from the application of section 904 of the Stewart B. 
     McKinney Homeless Assistance Amendments Act of 1988.''.

     SEC. 306. TECHNICAL ASSISTANCE FOR LEAD HAZARD REDUCTION 
                   GRANTEES.

       Section 1011(g) of the Housing and Community Development 
     Act of 1992 (42 U.S.C. 5318 note) is hereby repealed.

     SEC. 307. ENVIRONMENTAL REVIEW IN CONNECTION WITH GRANTS FOR 
                   LEAD-BASED PAINT HAZARD REDUCTION.

       Section 1011 of the Housing and Community Development Act 
     of 1992 (42 U.S.C. 5318 note) is amended--
       (1) by redesignating subsection (o) as subsection (p); and
       (2) by adding after subsection (n) the following new 
     subsection:
       ``(o) Environmental Review.--
       ``(1) In general.--For purposes of environmental review, 
     decisionmaking, and action pursuant to the National 
     Environmental Policy Act of 1960 and other provisions of law 
     that further the purposes of such Act, a grant under this 
     section shall be treated as assistance under the HOME 
     Investment Partnership Act, established under title II of the 
     Cranston-Gonzalez National Affordable Housing Act, and shall 
     be subject to the regulations promulgated by the Secretary to 
     implement section 288 of such Act.
       ``(2) Applicability.--This subsection shall apply to--
       ``(A) grants awarded under this section; and
       ``(B) grants awarded to States and units of general local 
     government for the abatement of significant lead-based paint 
     and lead dust hazards in low- and moderate-income owner-
     occupied units and low-income privately owned rental units 
     pursuant to title II of the Departments of Veterans Affairs 
     and Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1992 (Public Law 102-139, 105 Stat. 
     736).''.

     SEC. 308. FIRE SAFETY IN FEDERALLY ASSISTED HOUSING.

       Section 31(c)(2)(A)(i) of the Federal Fire Prevention and 
     Control Act of 1974 (15 U.S.C. 2227(c)(2)(A)(i)) is amended 
     by adding ``(or equivalent level of safety)'' after 
     ``system''.

     SEC. 309. SECTION 23 CONVERSION PROJECTS.

       (a) Section 23 Conversion.--
       (1) Authorization.--Notwithstanding contracts entered into 
     pursuant to section 14(b)(2) of the United States Housing Act 
     of 1937, the Secretary is authorized to enter into 
     obligations for conversion of Leonard Terrace Apartments in 
     Grand Rapids, Michigan, from a leased housing contract under 
     section 23 of such Act to a project-based rental assistance 
     contract under section 8 of such Act.
       (2) Repayment required.--The authorization made in 
     paragraph (1) is conditioned on the repayment to the 
     Secretary of all amounts received by the public housing 
     agency under the comprehensive improvement assistance program 
     under section 14 of the United States Housing Act of 1937 for 
     the Leonard Terrace Apartment project and the amounts, as 
     determined by the Secretary, received by the public housing 
     agency under the formula in section 14(k) of such Act by 
     reason of the project.
       (b) Contract Renewal.--
       (1) In general.--Leased housing contracts under section 23 
     of the United States Housing Act of 1937, as such section 
     existed before the date of enactment of the Housing and 
     Community Development Act of 1974, that--
       (A) were converted to section 8 contracts on terms similar 
     to or the same as the terms of the section 8 new construction 
     program; and
       (B) expire during fiscal year 1994 or 1995;
     shall be extended for a period not to exceed 5 years as if 
     the rents on such projects were established under the section 
     8 new construction program, except that section 8(c)(2)(C) of 
     the United States Housing Act of 1937 shall not apply to such 
     contracts.
       (2) Budget compliance.--To the extent that paragraph (1) 
     results in additional costs under this section, such 
     paragraph shall be effective only to the extent that amounts 
     to cover such additional costs are provided in advance in 
     appropriation Acts.

     SEC. 310. INDEMNIFICATION OF CONTRACTORS FOR INTELLECTUAL 
                   PROPERTY RIGHTS DISPUTES.

       A recipient of Federal housing assistance may not use such 
     funds to indemnify contractors or subcontractors against 
     costs associated with litigating or settling disputes 
     concerning the infringement of intellectual property rights.

     SEC. 311. ASSUMPTION OF ENVIRONMENTAL REVIEW RESPONSIBILITIES 
                   UNDER UNITED STATES HOUSING ACT OF 1937 
                   PROGRAMS.

       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. 26. ENVIRONMENTAL REVIEWS.

       ``(a) In General.--
       ``(1) Release of funds.--In order to assure that the 
     policies of the National Environmental Policy Act of 1969 and 
     other provisions of law which further the purposes of such 
     Act (as specified in regulations issued by the Secretary) are 
     most effectively implemented in connection with the 
     expenditure of funds under this title, and to assure to the 
     public undiminished protection of the environment, the 
     Secretary may, under such regulations, in lieu of the 
     environmental protection procedures otherwise applicable, 
     provide for the release of funds for projects or activities 
     under this title, as specified by the Secretary upon the 
     request of a public housing agency under this section, if the 
     State or unit of general local government, as designated by 
     the Secretary in accordance with regulations, assumes all of 
     the responsibilities for environmental review, 
     decisionmaking, and action pursuant to such Act, and such 
     other provisions of law as the regulations of the Secretary 
     may specify, which would otherwise apply to the Secretary 
     with respect to the release of funds.
       ``(2) Implementation.--The Secretary, after consultation 
     with the Council on Environmental Quality, shall issue such 
     regulations as may be necessary to carry out this section. 
     Such regulations shall specify the programs to be covered.
       ``(b) Procedure.--The Secretary shall approve the release 
     of funds subject to the procedures authorized by this section 
     only if, not less than 15 days prior to such approval and 
     prior to any commitment of funds to such projects or 
     activities, the public housing agency has submitted to the 
     Secretary a request for such release accompanied by a 
     certification of the State or unit of general local 
     government which meets the requirements of subsection (c). 
     The Secretary's approval of any such certification shall be 
     deemed to satisfy the Secretary's responsibilities under the 
     National Environmental Policy Act of 1969 and such other 
     provisions of law as the regulations of the Secretary specify 
     insofar as those responsibilities relate to the release of 
     funds which are covered by such certification.
       ``(c) Certification.--A certification under the procedures 
     authorized by this section shall--
       ``(1) be in a form acceptable to the Secretary;
       ``(2) be executed by the chief executive officer or other 
     officer of the State or unit of general local government who 
     qualifies under regulations of the Secretary;
       ``(3) specify that the State or unit of general local 
     government under this section has fully carried out its 
     responsibilities as described under subsection (a); and
       ``(4) specify that the certifying officer--
       ``(A) consents to assume the status of a responsible 
     Federal official under the National Environmental Policy Act 
     of 1969 and agrees to comply with each provision of law 
     specified in regulations issued by the Secretary insofar as 
     the provisions of such Act or other such provision of law 
     apply pursuant to subsection (a); and
       ``(B) is authorized and consents on behalf of the State or 
     unit of general local government and himself or herself to 
     accept the jurisdiction of the Federal courts for the purpose 
     of enforcement of his or her responsibilities as such an 
     official.
       ``(d) Approval by States.--In cases in which a unit of 
     general local government carries out the responsibilities 
     described in subsection (c), the Secretary may permit the 
     State to perform those actions of the Secretary described in 
     subsection (b) and the performance of such actions by the 
     State, where permitted by the Secretary, shall be deemed to 
     satisfy the Secretary's responsibilities referred to in the 
     second sentence of subsection (b).''.

     SEC. 312. INCREASED STATE FLEXIBILITY IN THE LOW-INCOME HOME 
                   ENERGY ASSISTANCE PROGRAM.

       Section 927 of the Housing and Community Development Act of 
     1992 (42 U.S.C. 8624) is amended--
       (1) in subsection (a)--
       (A) in the heading, by striking ``(a) Eligibility.--'' and 
     inserting the following:
       ``(a) In General.--'';
       (B) by striking ``(including but not limited to the Low-
     Income Home Energy Assistance Program)''; and
       (C) by inserting ``, except as provided in subsection (d)'' 
     before the period at the end;
       (2) in subsection (b)--
       (A) by striking ``such'' and inserting ``or receiving 
     energy''; and
       (B) by inserting before the period at the end ``for any 
     program in which eligibility or benefits are based on need, 
     except as provided in subsection (d)''; and
       (3) by adding at the end the following new subsection:
       ``(d) Special Rule for Low-Income Home Energy Assistance 
     Program.--For purposes of the Low-Income Home Energy 
     Assistance Program, tenants described in subsection (a)(2) 
     shall not have their eligibility automatically denied. States 
     may consider the amount of the heating or cooling component 
     of utility allowances received by such tenants when setting 
     benefit levels under the Low-Income Home Energy Assistance 
     Program. Any reduction in fuel assistance benefits must be 
     reasonably related to the amount of the heating or cooling 
     component of the utility allowance received. States shall 
     ensure that the highest level of assistance will be provided 
     to those households with the highest energy burdens, in 
     accordance with section 2605(b)(5) of the Low-Income Home 
     Energy Assistance Act of 1981.''.
                    Subtitle B--Multifamily Housing

     SEC. 321. CORRECTION OF MULTIFAMILY MORTGAGE LIMITS.

       The National Housing Act (12 U.S.C. 1701 et seq.) is 
     amended in sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), 
     and 234(e)(3) by striking ``$59,160'' each place it appears 
     and inserting ``$56,160''.

     SEC. 322. FHA MULTIFAMILY RISK-SHARING; HFA PILOT PROGRAM 
                   AMENDMENTS.

       (a) In General.--Section 542(c) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1707 note) is 
     amended--
       (1) in paragraph (1), by inserting after ``qualified 
     housing finance agencies'' the following: ``(including 
     entities established by States that provide mortgage 
     insurance)'';
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking the last sentence and 
     inserting the following: ``Such agreements shall specify that 
     the qualified housing finance agency and the Secretary shall 
     share any loss in accordance with the risk-sharing 
     agreement.''; and
       (B) by adding at the end the following new subparagraph:
       ``(F) Disclosure of records.--Qualified housing finance 
     agencies shall make available to the Secretary such financial 
     and other records as the Secretary deems necessary for 
     program review and monitoring purposes.'';
       (3) in paragraph (7)--
       (A) by striking ``very low-income''; and
       (B) by striking ``(2)''; and
       (4) by adding at the end the following new paragraphs:
       ``(9) Environmental and other reviews.--
       ``(A) Environmental reviews.--
       ``(i) In general.--(I) In order to assure that the policies 
     of the National Environmental Policy Act of 1969 and other 
     provisions of law which further the purposes of such Act (as 
     specified in regulations issued by the Secretary) are most 
     effectively implemented in connection with the insurance of 
     mortgages under subsection (c)(2), and to assure to the 
     public undiminished protection of the environment, the 
     Secretary may, under such regulations, in lieu of the 
     environmental protection procedures otherwise applicable, 
     provide for agreements to endorse for insurance mortgages 
     under subsection (c)(2) upon the request of qualified housing 
     finance agencies under this subsection, if the State or unit 
     of general local government, as designated by the Secretary 
     in accordance with regulations, assumes all of the 
     responsibilities for environmental review, decisionmaking, 
     and action pursuant to such Act, and such other provisions of 
     law as the regulations of the Secretary may specify, that 
     would otherwise apply to the Secretary with respect to the 
     insurance of mortgages on particular properties.
       ``(II) The Secretary shall issue regulations to carry out 
     this subparagraph only after consultation with the Council on 
     Environmental Quality. Such regulations shall, among other 
     matters, provide--

       ``(aa) for the monitoring of the performance of 
     environmental reviews under this subparagraph;
       ``(bb) subject to the discretion of the Secretary, for the 
     provision or facilitation of training for such performance; 
     and
       ``(cc) subject to the discretion of the Secretary, for the 
     suspension or termination by the Secretary of the qualified 
     housing finance agency's responsibilities under subclause 
     (I).

       ``(III) The Secretary's duty under subclause (II) shall not 
     be construed to limit any responsibility assumed by a State 
     or unit of general local government with respect to any 
     particular property under subclause (I).
       ``(ii) Procedure.--The Secretary shall approve a mortgage 
     for the provision of mortgage insurance subject to the 
     procedures authorized by this paragraph only if, not less 
     than 15 days prior to such approval, prior to any approval, 
     commitment, or endorsement of mortgage insurance on the 
     property on behalf of the Secretary, and prior to any 
     commitment by the qualified housing finance agency to provide 
     financing under the risk-sharing agreement with respect to 
     the property, the qualified housing finance agency submits to 
     the Secretary a request for such approval, accompanied by a 
     certification of the State or unit of general local 
     government that meets the requirements of clause (iii). The 
     Secretary's approval of any such certification shall be 
     deemed to satisfy the Secretary's responsibilities under the 
     National Environmental Policy Act of 1969 and such other 
     provisions of law as the regulations of the Secretary specify 
     insofar as those responsibilities relate to the provision of 
     mortgage insurance on the property that is covered by such 
     certification.
       ``(iii) Certification.--A certification under the 
     procedures authorized by this paragraph shall--

       ``(I) be in a form acceptable to the Secretary;
       ``(II) be executed by the chief executive officer or other 
     officer of the State or unit of general local government who 
     qualifies under regulations of the Secretary;
       ``(III) specify that the State or unit of general local 
     government under this section has fully carried out its 
     responsibilities as described under clause (i); and
       ``(IV) specify that the certifying officer consents to 
     assume the status of a responsible Federal official under the 
     National Environmental Policy Act of 1969 and under each 
     provision of law specified in regulations issued by the 
     Secretary insofar as the provisions of such Act or such other 
     provisions of law apply pursuant to clause (i), and is 
     authorized and consents on behalf of the State or unit of 
     general local government and himself or herself to accept the 
     jurisdiction of the Federal courts for the purpose of 
     enforcement of the responsibilities as such an official.

       ``(iv) Approval by states.--In cases in which a unit of 
     general local government carries out the responsibilities 
     described in clause (i), the Secretary may permit the State 
     to perform those actions of the Secretary described in clause 
     (ii) and the performance of such actions by the State, where 
     permitted by the Secretary, shall be deemed to satisfy the 
     Secretary's responsibilities referred to in the second 
     sentence of clause (ii).
       ``(B) Lead-based paint poisoning prevention.--In carrying 
     out the requirements of section 302 of the Lead-Based Paint 
     Poisoning Prevention Act, the Secretary may provide by 
     regulation for the assumption of all or part of the 
     Secretary's duties under such Act by qualified housing 
     finance agencies, for purposes of this section.
       ``(C) Certification of subsidy layering compliance.--The 
     requirements of section 102(d) of the Department of Housing 
     and Urban Development Reform Act of 1989 may be satisfied in 
     connection with a commitment to insure a mortgage under this 
     subsection by a certification by a housing credit agency 
     (including an entity established by a State that provides 
     mortgage insurance) to the Secretary that the combination of 
     assistance within the jurisdiction of the Secretary and other 
     government assistance provided in connection with a property 
     for which a mortgage is to be insured shall not be any 
     greater than is necessary to provide affordable housing.
       ``(10) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Mortgage.--The term `mortgage' means a first mortgage 
     on real estate that is--
       ``(i) owned in fee simple; or
       ``(ii) subject to a leasehold interest that--

       ``(I) has a term of not less than 99 years and is 
     renewable; or
       ``(II) has a remaining term that extends beyond the 
     maturity of the mortgage for a period of not less than 10 
     years.

       ``(B) First mortgage.--The term `first mortgage' means a 
     single first lien given to secure advances on, or the unpaid 
     purchase price of, real estate, under the laws of the State 
     in which the real estate is located, together with the credit 
     instrument, if any, secured thereby. Any other financing 
     permitted on property insured under this section must be 
     expressly subordinate to the insured mortgage.
       ``(C) Unit of general local government; state.--The terms 
     `unit of general local government' and `State' have the same 
     meanings as in section 102(a) of the Housing and Community 
     Development Act of 1974.''.
       (b) Definition of Multifamily Housing.--Section 544(1) of 
     the Housing and Community Development Act of 1992 (12 U.S.C. 
     1707 note) is amended to read as follows:
       ``(1) The term `multifamily housing' means housing 
     accommodations on the mortgaged property that are designed 
     principally for residential use, conform to standards 
     satisfactory to the Secretary, and consist of not less than 5 
     rental units on 1 site. These units may be detached, 
     semidetached, row house, or multifamily structures.''.

     SEC. 323. SUBSIDY LAYERING REVIEW.

       Section 911 of the Housing and Community Development Act of 
     1992 (42 U.S.C. 3545 note) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Certification of Subsidy Layering Compliance.--The 
     requirements of section 102(d) of the Department of Housing 
     and Urban Development Reform Act of 1989 may be satisfied in 
     connection with a project receiving assistance under a 
     program that is within the jurisdiction of the Department of 
     Housing and Urban Development and under section 42 of the 
     Internal Revenue Code of 1986 by a certification by a housing 
     credit agency to the Secretary, submitted in accordance with 
     guidelines established by the Secretary, that the combination 
     of assistance within the jurisdiction of the Secretary and 
     other government assistance provided in connection with a 
     property for which assistance is to be provided within the 
     jurisdiction of the Department of Housing and Urban 
     Development and under section 42 of the Internal Revenue Code 
     of 1986 shall not be any greater than is necessary to provide 
     affordable housing.''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Revocation by Secretary.--If the Secretary determines 
     that a housing credit agency has failed to comply with the 
     guidelines established under subsection (a), the Secretary--
       ``(1) may inform the housing credit agency that the agency 
     may no longer submit certification of subsidy layering 
     compliance under this section; and
       ``(2) shall carry out section 102(d) of the Housing and 
     Urban Development Reform Act relating to affected projects 
     allocated a low-income housing tax credit pursuant to section 
     42 of the Internal Revenue Code of 1986.''.
           Subtitle C--Miscellaneous and Technical Amendments

     SEC. 331. TECHNICAL CORRECTION TO RURAL HOUSING PRESERVATION 
                   PROGRAM.

       Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(c)(1)) is amended by striking ``December 21, 1979'' and 
     inserting ``December 15, 1989''.

     SEC. 332. CDBG TECHNICAL AMENDMENT.

       Notwithstanding any other provision of law, the city of 
     Slidell, Louisiana may submit, not later than 10 days 
     following the enactment of this Act, and the Secretary of 
     Housing and Urban Development shall consider and accept, the 
     final statement of community development objectives and 
     projected use of funds required by section 104(a)(1) of the 
     Housing and Community Development Act of 1974 in connection 
     with a grant to the city of Slidell under title 1 of such Act 
     for fiscal year 1994.

     SEC. 333. ENVIRONMENTAL REVIEW IN CONNECTION WITH SPECIAL 
                   PROJECTS.

       (a) In General.--
       (1) Release of funds.--In order to assure that the policies 
     of the National Environmental Policy Act of 1969 and other 
     provisions of law which further the purposes of such Act (as 
     specified in regulations issued by the Secretary) are most 
     effectively implemented in connection with the expenditure of 
     funds for special projects appropriated under an 
     appropriations Act for the Department of Housing and Urban 
     Development, such as special projects under the head ``Annual 
     Contributions for Assisted Housing'' in title II of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1993, and to assure to the public undiminished protection of 
     the environment, the Secretary of Housing and Urban 
     Development may, under such regulations, in lieu of the 
     environmental protection procedures otherwise applicable, 
     provide for the release of funds for particular special 
     projects upon the request of recipients of special projects 
     assistance, if the State or unit of general local government, 
     as designated by the Secretary in accordance with 
     regulations, assumes all of the responsibilities for 
     environmental review, decisionmaking, and action pursuant to 
     such Act, and such other provisions of law as the regulations 
     of the Secretary specify, that would otherwise apply to the 
     Secretary were the Secretary to undertake such special 
     projects as Federal projects.
       (2) Implementation.--The Secretary shall issue regulations 
     to carry out this section only after consultation with the 
     Council on Environmental Quality. Such regulations shall--
       (A) provide for monitoring of the performance of 
     environmental reviews under this section;
       (B) in the discretion of the Secretary, provide for the 
     provision or facilitation of training for such performance; 
     and
       (C) subject to the discretion of the Secretary, provide for 
     suspension or termination by the Secretary of the assumption 
     under paragraph (1).
       (3) Responsibilities of state or unit of general local 
     government.--The Secretary's duty under paragraph (2) shall 
     not be construed to limit any responsibility assumed by a 
     State or unit of general local government with respect to any 
     particular release of funds under paragraph (1).
       (b) Procedure.--The Secretary shall approve the release of 
     funds for projects subject to the procedures authorized by 
     this section only if, not less than 15 days prior to such 
     approval and prior to any commitment of funds to such 
     projects, the recipient submits to the Secretary a request 
     for such release, accompanied by a certification of the State 
     or unit of general local government which meets the 
     requirements of subsection (c). The Secretary's approval of 
     any such certification shall be deemed to satisfy the 
     Secretary's responsibilities under the National Environmental 
     Policy Act of 1969 and such other provisions of law as the 
     regulations of the Secretary specify insofar as those 
     responsibilities relate to the releases of funds for special 
     projects to be carried out pursuant thereto which are covered 
     by such certification.
       (c) Certification.--A certification under the procedures 
     authorized by this section shall--
       (1) be in a form acceptable to the Secretary;
       (2) be executed by the chief executive officer or other 
     officer of the State or unit of general local government who 
     qualifies under regulations of the Secretary;
       (3) specify that the State or unit of general local 
     government under this section has fully carried out its 
     responsibilities as described under subsection (a); and
       (4) specify that the certifying officer--
       (A) consents to assume the status of a responsible Federal 
     official under the National Environmental Policy Act of 1969 
     and agrees to comply with each provision of law specified in 
     regulations issued by the Secretary insofar as the provisions 
     of such Act or other such provision of law apply pursuant to 
     subsection (a); and
       (B) is authorized and consents on behalf of the State or 
     unit of general local government and himself or herself to 
     accept the jurisdiction of the Federal courts for the purpose 
     of enforcement of the responsibilities as such an official.
       (d) Approval by States.--In cases in which a unit of 
     general local government carries out the responsibilities 
     described in subsection (a), the Secretary may permit the 
     State to perform those actions of the Secretary described in 
     subsection (b) and the performance of such actions by the 
     State, where permitted by the Secretary, shall be deemed to 
     satisfy the Secretary's responsibilities referred to in the 
     second sentence of subsection (b).
                      TITLE IV--GENERAL PROVISIONS

     SEC. 401. MOUNT RUSHMORE COMMEMORATIVE COIN ACT.

       (a) Distribution of Surcharges.--Section 8 of the Mount 
     Rushmore Commemorative Coin Act (31 U.S.C. 5112 note) is 
     amended by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) the first $18,750,000 shall be paid during fiscal 
     year 1994 by the Secretary to the Society to assist the 
     Society's efforts to improve, enlarge, and renovate the Mount 
     Rushmore National Memorial; and
       ``(2) the remainder shall be returned to the United States 
     Treasury for purposes of reducing the national debt.''.
       (b) Retroactive Effect.--If, prior to the date of enactment 
     of this Act, any amount of surcharges have been received by 
     the Secretary of the Treasury and paid into the United States 
     Treasury pursuant to section 8(1) of the Mount Rushmore 
     Commemorative Coin Act, as in effect prior to the date of 
     enactment of this Act, that amount shall be paid out of the 
     Treasury to the extent necessary to comply with section 8(1) 
     of the Mount Rushmore Commemorative Coin Act, as in effect 
     after the date of enactment of this Act. Amounts paid 
     pursuant to the preceding sentence shall be out of funds not 
     otherwise appropriated.

     SEC. 402. MINORITY COMMUNITY DEVELOPMENT GRANTS FOR 
                   COMMUNITIES WITH SPECIAL NEEDS.

       (a) Authorization.--There are hereby authorized to be 
     expended from sums appropriated for water infrastructure 
     financing and other wastewater activities for cities with 
     special needs, not more than $25,000,000, for wastewater 
     treatment projects, including the construction of facilities 
     and related expenses in minority communities with special 
     needs to--
       (1) improve the housing stock infrastructure in the special 
     needs communities; and
       (2) abate health hazards caused by groundwater 
     contamination from septage in arid areas with high 
     groundwater levels.
       (b) Treatment Projects.--The wastewater treatment projects 
     authorized under this section shall include innovative 
     technologies such as vacuum systems and constructed wetlands.
       (c) Definitions.--For purposes of this section--
       (1) the term ``cities with special needs'' includes 
     minority communities with special needs;
       (2) the term ``minority'' means an African-American, a 
     Hispanic-American, an Asian-American, or a Native American; 
     and
       (3) the term ``minority community with special needs'' 
     means an unincorporated community--
       (A) that, based on the latest census data, has a minority 
     population in excess of 50 percent;
       (B) that has been unable to issue bonds or otherwise 
     finance a wastewater treatment system itself because its 
     attempts to change its political subdivision have been 
     rejected by the State legislature; and
       (C) for which the State legislature has appropriated funds 
     to help pay for a wastewater treatment project.


                     motion offered by mr. gonzalez

  Mr. GONZALEZ. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Mr. Gonzalez.  moves to strike out all after the enacting 
     clause of the Senate bill, S. 1299, and to insert in lieu 
     thereof the provisions of H.R. 4067, as passed by the House.

  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas [Mr. Gonzalez].
  The motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed.
  The title of the Senate bill was amended so as to read:

       An Act to amend section 203 of the Housing and Community 
     Development Amendments of 1978 to provide for the disposition 
     of multifamily properties owned by the Secretary of Housing 
     and Urban Development, to provide for other reforms in 
     programs administered by the Secretary, and to make certain 
     technical amendments, and for other purposes.

  A motion to reconsider was laid on the table.
  A similar House bill (H.R. 4067) was laid on the table.

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