[Congressional Record Volume 140, Number 48 (Thursday, April 28, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
     INTRODUCTION, BY REQUEST, OF THE HOUSING CHOICE AND COMMUNITY 
                         INVESTMENT ACT OF 1994

                                 ______


                         HON. HENRY B. GONZALEZ

                                of texas

                    in the house of representatives

                        Thursday, April 28, 1994

  Mr. GONZALEZ. Mr. Speaker, I am pleased to introduce today, by 
request of the Department of Housing and Urban Development and HUD 
Secretary Henry Cisneros, the Housing Choice and Community Investment 
Act of 1994. The primary purpose of this legislation is to reauthorize 
for 2 years HUD's housing and community development programs. The 
principal focus of the legislation is on five priority areas, 
including: First, reducing homelessness; second, turning around public 
housing; third, expanding affordable housing; fourth, enhancing fair 
housing; and fifth, empowering communities.
  I am entering into the Record Secretary Cisneros' transmittal letter 
accompanying the legislation.
  This comprehensive legislation demonstrates HUD's, and this 
administration's, renewed commitment to addressing this Nation's 
housing and community development needs. The legislation contains 
various program modifications, and new programs, that will warrant 
close review by the House Banking Committee's Subcommittee on Housing 
and Community Development as it moves toward markup of the housing 
reauthorization bill for this year.
  On February 10, 1994, I introduced the Housing and Community 
Development Act of 1994, H.R. 3838, which also reauthorizes housing and 
community development programs, and contains many of the proposals made 
in HUD's bill, including, in particular, reform to the public housing 
and section 8 programs. The subcommittee, since the bill's 
introduction, has been holding reauthorization hearings, that have 
included, in addition to representatives of housing organizations and 
other members of the public, Secretary Cisneros and HUD Assistant 
Secretaries Joseph Shuldiner, Nicholas Retsinas, Andrew Cuomo, and 
Roberta Achtenberg. During these hearings, many of the proposals 
included in the HUD bill that I am introducing today have been outlined 
by these HUD officials.
  I am looking forward to working with HUD, with other members of the 
subcommittee and committee, other House Members, and our counterparts 
in the Senate, as we move toward completion of the reauthorization 
process, and this critically important legislation.

                                         Department of Housing and


                                            Urban Development,

                                   Washington, DC, April 26, 1994.
     Hon. Thomas S. Foley,
     Speaker, U.S. House of Representatives, Washington, DC.
       Dear Mr. Speaker: I am pleased to transmit to you the 
     ``Housing Choice and Community Investment Act of 1994.'' For 
     the past several months, the department has been working with 
     the Office of Management and Budget, key Congressional 
     Committees and various housing and community development 
     groups on the preparation of this authorization bill.
       This legislation would authorize $60 billion over the next 
     two fiscal years for HUD's housing and community development 
     programs. The legislation is focused on the five central 
     priorities governing HUD's community investment agenda: 
     reducing homelessness, turning around public housing, 
     expanding affordable housing, enhancing fair housing, and 
     empowering communities.
       This legislation will transform the delivery of homeless 
     assistance programs by consolidating and reorganizing several 
     disparate programs into a single source of funding to support 
     local ``continuum of care'' systems to assist homeless 
     persons and prevent future homelessness.
       The Act would set the foundation for a total remake of our 
     public housing program, ending public housing as we know it. 
     The bill would remove disincentives for public housing 
     residents to seek employment. It would reward entrepreneurial 
     public housing agencies through deregulation and the granting 
     of added powers to experiment and innovate. Anti-crime 
     efforts would be streamlined and linked to other law 
     enforcement efforts.
       This bill also proposes to once again make HUD's Federal 
     Housing Administration (FHA) a positive force for enhancing 
     homeownership opportunities. The Act would raise the maximum 
     mortgage limits and give FHA the authority to innovate with 
     new homeownership products as well as enter into risk-sharing 
     arrangements with qualified governmental entities. Additional 
     subsidy tools and increased funding for counselling will also 
     help to foster homeownership opportunities.
       HUD's fair housing efforts would be greatly enhanced under 
     this legislation, by advancing the goals of geographic 
     mobility, neighborhood equity, and residential diversity. The 
     bill would expand existing programs that enable HUD, with the 
     aid of nonprofit groups and state and local governments, to 
     enforce our nation's fair housing laws.
       Mr. Speaker, the Act would also consolidate and revamp 
     HUD's Section 8 rental assistance programs, permit public 
     housing authorities including Indian housing authorities to 
     sell public and Indian housing to non-profit organizations to 
     facilitate homeownership opportunities to public housing 
     residents and create a new Choice in Residency program that 
     would give, for the first time, recipients of federal housing 
     aid the counselling they need to make informed choices about 
     where they should live.
       The Housing Choice and Community Investment Act would also 
     support HUD's efforts to once again become a positive force 
     in the revitalization of our nation's communities. The 
     legislation would continue the strong support for the 
     Community Development Block Grant program, create a 
     Neighborhood LIFT program to develop neighborhoods' economic 
     infrastructures, create a Community Viability fund to build 
     the capacity of community-based groups, authorize additional 
     funds for the President's empowerment zone initiative, and 
     facilitate the use of Section 108 loan guarantees.
       A section-by-section explanation and justification 
     accompanies this letter and more fully sets forth the 
     contents of the bill. I request that the bill be referred to 
     the appropriate committee and urge its early consideration.
       The Housing Choice and Community Investment Act of 1994 
     would affect direct spending; therefore it is subject to the 
     pay-as-you-go requirement of the Omnibus Budget 
     reconciliation Act of 1990. OMB's estimate is that the bill's 
     pay-as-you-go impact will be zero.
       The Office of Management and Budget has advised that the 
     enactment of this legislation would be in accord with the 
     program of the President.
       I am sending a similar letter to the President of the 
     United States Senate, Vice President Albert Gore, Jr.
           Sincerely,
                                                   Henry Cisneros,
     Secretary.

                          ____________________