[Congressional Record Volume 140, Number 35 (Thursday, March 24, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
    THE MULTIFAMILY HOUSING PROPERTY DISPOSITION REFORM ACT OF 1994

 Mr. D'AMATO. Mr. President, I rise today to offer my support 
for the Multifamily Housing Property Disposition Reform Act of 1994. 
This legislation addresses growing problems that greatly concern me 
with the Federal Housing Administration [FHA] multifamily property 
disposition program. In addition, this legislation will save American 
taxpayers some $470 million by reducing holding costs incurred by HUD.
  The FHA property disposition process at the Department of Housing and 
Urban Development [HUD] is virtually at a standstill because HUD lacks 
the funding needed to dispose of the hundreds of properties in its 
inventory. As more and more FHA-insured developments fall into 
foreclosure the cost burden to the Federal Government increases, the 
management problem is exacerbated, and the potential for further 
distress in our neighborhoods is worsened. This bill creates the 
flexibility necessary to rectify this problem in order to maintain the 
actuarial soundness of the fund while at the same time balancing the 
need for providing affordable housing opportunities.
  This legislation will give the Department new tools and invigorate 
existing authorities to facilitate disposition. It also provides new 
methods designed to prevent defaults from occurring and will minimize 
the potential for future losses while protecting the rights of low-
income tenants currently residing in these developments.
  This bill also improves two other key HUD programs. The legislation 
improves the workability of the HOME Investment Partnership Program 
with changes that include making the HOME matching requirements uniform 
for all HOME-funded activities, clarifying that targeting is based on 
families served rather than dollars expended, and broadening the 
availability of HOME funds to assist homeownership activities. It also 
improves the Section 108 Community Development Loan Guarantee Program 
by expanding its eligible activities and by providing additional 
incentives for communities to take advantage of this program.
  Mr. President, I would like to express my sincere thanks to Senator 
Bond, ranking member of the Senate Subcommittee on Housing and Urban 
Affairs, Senator Sarbanes, chairman of the Senate Subcommittee on 
Housing and Urban Affairs, and Senator Riegle, chairman of the Banking 
Committee for their commitment to the issues addressed in this 
legislation. I would also like to thank Fallie Calder on my staff, Jon 
Kamark on Senator Bond's staff, Jeannine Jacokes on Senator Riegle's 
staff, and Paul Weech, Kris Warren, Robin Campbell, Cheryl Fox, and 
Lori Bamberger on Senator Sarbanes' staff for their hard work and 
dedication.

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