[Congressional Record Volume 140, Number 96 (Thursday, July 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1994

  The SPEAKER pro tempore (Mr. Fields  of Louisiana). Pursuant to House 
Resolution 482 and rule XXIII, the Chair declares the House in the 
Committee of the Whole House on the State of the Union for the 
consideration of the bill H.R. 3838.

                              {time}  1753


                     In the committee of the whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 3838) to amend and extend certain laws relating to housing and 
community development, and for other purposes, with Mrs. Thurman in the 
chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the Rule the gentleman from Texas [Mr. Gonzalez] will be 
recognized for 30 minutes, and the gentlewoman from New Jersey [Mrs. 
Roukema] will be recognized for 30 minutes.
  The Chair recognizes the gentleman from Texas [Mr. Gonzalez].
  Mr. GONZALEZ. Madam Chairman, I yield myself such time as I may 
consume.
  (Mr. GONZALEZ asked and was given permission to revise and extend his 
remarks.)
  Mr. GONZALEZ. Madam Chairman, I yield myself such time as I may 
consume.
  Madam Chairman, on behalf of my ranking minority members on the 
Committee on Banking, Finance and Urban Affairs and the Subcommittee on 
Housing and Community Development, the gentlewoman from New Jersey 
[Mrs. Roukema] and the gentleman from Iowa [Mr. Leach] I am very proud 
to bring before the House for its consideration the Housing and 
Community Development Act of 1994. I thank all of my colleagues on the 
Committee on Banking, Finance and Urban Affairs on both sides of the 
aisle for their diligence and hard work during the 2 full days of a 
long markup of this bill. Virtually every member of the committee made 
a contribution and left his or her mark on this legislation, and it 
enjoys an overwhelming bipartisan support.
  H.R. 3838 continues for 2 years, as was stated in the rule, the 
current HUD and Farmers Home programs. It fine-tunes many of them, 
resulting from many hearings that we have had in the past 2 years, not 
just last year. It creates a limited number of new programs, limited in 
accordance with that expressed desire on the part of the leadership, 
and particularly in consonance with the minority.
  These programs provide housing and supportive services to our 
Nation's most vulnerable citizens and communities for low- and 
moderate-income and homeless Americans. Others enable thousands of 
American families for the first time to become homeowners. Still other 
programs help to stabilize neighborhoods by providing infill housing on 
vacant lots, neighborhood retail business enhancements, and large-scale 
site acquisition, clearance, and rebuilding. It is truly a housing and 
community development bill.
  The bill streamlines a number of core housing and community 
development programs to provide regulatory and paperwork relief to HUD, 
the Farmers Home Administration, and program beneficiaries. Most 
initiatives proposed by the the administration are included within the 
current programs as eligible uses. The committee did this on a 
bipartisan basis in recognition of the concern of the HUD Inspector 
General now and his predecessors, the Inspectors General, for the 
growing number of HUD programs during a time of reduced HUD staffing 
and inappropriate skills mix.
  This has been the question and the problem for some time, stretching 
back several administrations.
  Important provisions of the bill include a broadening at both the low 
and the high end of the FHA mortgage limit, the preservation of the 
current affordable housing stock through a new cost saving section 8 
contract renewal process, and this is in anticipation of what, if we 
are not handling it now as I have thanked the members of the 
subcommittee and full committee for anticipating, what would otherwise 
be a difficult problem to handle as we emerge into the next year and 
have many of the expiration dates coming around the horizon on some of 
these section 8 contract arrangements.
  We have a merger of section 8 certificates and vouchers, which has 
been the result of at least some 6 or 8 years of effort to bring about, 
into some streamlined program. And here I want to compliment the HUD 
administration now in power for the excellent leadership they provided 
us in bringing a viable and a possible joinder of these two programs.
  A block granting of six HUD homeless programs to achieve 
administrative efficiencies, rent reform for public housing residents, 
more flexibility for localities to meet the public housing one-for-one 
replacement, which I have from the very beginning been the advocate of.
  In fact, I am the author of the one-for-one replacement amendments, 
going back to the beginning of the HUD period. I am also the author of 
the compensation programs in the case of eminent domain. In fact, in 
the charter legislation in 1965, I happen to be blessed with the 
privilege of having been serving on the Subcommittee on Housing and 
Community Development for the 32\1/2\ years that I have been here, and 
therefore was in on the creation of HUD in 1965, and the first and 
probably the most comprehensive and innovative and seminal act with 
respect to housing and urban development, as well as rural, in the 1966 
comprehensive act.
  Mindful of the cap on the domestic discretionary spending for the 
next 5 fiscal years, the bill authorizes $28.1 billion in fiscal year 
1995, and $30 billion in fiscal year 1996 for HUD programs, and $3.1 
billion in fiscal year 1995 and $3.2 billion in fiscal year 1996 for 
the Farmers Home programs administered by the Department of 
Agriculture.

                              {time}  1800

  The bill reflects a bipartisan consensus on total program funding for 
each of departments. The managers' amendments will further reduce these 
totals to levels previously agreed to by both the majority and the 
minority, without reducing program levels below the appropriated 
levels.
  The authorized levels for HUD programs, if fully funded by the 
Committee on Appropriations, will add 165,000 new units of affordable 
housing to the Nation's housing supply in fiscal year 1995 and another 
174,000 units in fiscal year 1996.
  This does not include new units generated through FHA mortgage 
insurance, the National Home Ownership Fund, or the Farmers Home Rural 
Housing programs.
  I also intend to offer an en block amendment with the gentleman from 
Iowa [Mr. Leach] and the gentlewoman from New Jersey [Mrs. Roukema] 
particularly, as the minority leader of the Subcommittee on Housing, 
and myself in consultation with individual Members who have proposed 
further modifications and amendments to the bill. And we do this to 
expedite the consideration of the bill on sort of a consensual 
approach.
  Madam Chairman, I include for the Record the following summary:

                             Short Summary


      h.r. 3838--the housing and community development act of 1994

       Funding Levels: Authorizes $28.1 billion in FY 1995 and $30 
     billion in FY 1996 for HUD programs. Authorizes $3.1 billion 
     in FY 1995 and $3.2 billion in Farmers Home Administration 
     (FmHA) rural housing programs administered through the 
     Agriculture Department.
       The HUD authorized level for FY 95 is $2 billion less than 
     that authorized by the Congress in FY 1994. The HUD funding 
     authorized, if appropriated, would add 165,000 new units of 
     affordable housing to the nation's housing supply in FY 1995 
     and another 174,000 units in FY 1996. These figures do not 
     include new units financed through the FHA mortgage insurance 
     programs, do not include units under the FmHA rural housing 
     programs.
       A chart detailing specific authorization levels for each 
     program is attached.

                       Title I--Assisted Housing

       Subtitle A: General Provisions--Provides that not less than 
     one-fourth of the Commissioners on Public Housing Authority 
     (PHA) boards must be residents of public housing. Clarifies 
     certain definitions in current law. Makes the escrow account 
     required for each Family Self Sufficiency participant an 
     option for PHAs and families. Builds the cost of FSS Service 
     Coordinators into the underlying section 8 contract and 
     public housing development contract. Permits use of 
     Headquarters Reserve to settle civil rights litigation such 
     as desegregation of public housing.
       Subtitle B: Public and Indian Housing--Provides rent reform 
     for public housing residents by not counting all or part of 
     their earned income for rent calculation purposes. Provides 
     regulatory relief for ``high performer'' PHAs and Indian 
     Housing Authorities (IHAs) that score well under the Public 
     Housing Management Assessment Program (PHMAP). Permits PHAs 
     to retain savings they achieve by operating more efficiently.
       Directs HUD to include additional factors in its 
     calculation of public housing operating subsidies.
       Permits PHAs to use up to one-half their annual 
     modernization grant to replace older public housing rather 
     than remodel it, if such replacement is more cost effective. 
     Reforms and rewrites current law requiring one-for-one 
     replacement of public housing demolished or sold to permit a 
     broader range of eligible replacement programs and joint 
     ventures between a PHA and private developers.
       Conforms two programs for severely distressed public 
     housing into one.
       Creates a five year demonstration program for 25 PHAs and 
     resident management corporations to provide maximum 
     flexibility in operating public housing through waivers of 
     HUD regulations and statutes.
       Permits PHAs to screen applicants for as well as current 
     residents of public housing for prior criminal records. Such 
     records may also be used for evictions.
       Broadens the Public Housing Resident Management Technical 
     Assistance and Training program to permit grants for resident 
     organizing, resident council capacity-building, and resident 
     business development.
       Broadens Public Housing Family Investment Centers (FICs) 
     services to include job training, employment referrals, job 
     banks, apprenticeship training, business development start-up 
     costs, job recruitment, supervision of trainees, funding of 
     resident councils, RMCs, and other community-based 
     organizations to inform residents about services provided by 
     FICs.
       Subtitle C: Section 8 Assistance--Merges the Section 8 
     certificate and voucher programs.
       Establishes the Fair Market Rents (FMRs) at the 45th 
     percentile of local rents; the 30 percent rent-to-income 
     ratio, and federal preferences.
       Deletes payment standards and ``take one, take all''; 
     permits families to pay up to 40 percent of their income for 
     rent, subject to a rent reasonableness test by the PHA; and 
     requires the PHA to survey its housing market if more than 
     half its section families are paying more than 30 percent of 
     their income for rent. Permits standard leases commonly used 
     in the locality, including written notice requirements for 
     evictions. Freezes the section 8 administrative fee for FY 
     1995 and FY 1996 at the FY 1994 level for PHAs. Permits 
     limited fee increases, subject to appropriations, in some 
     circumstances.
       New features of the merged section 8 program include a 
     ``repair and deduct'' feature permitting PHAs, and tenants in 
     some circumstances, to repair long-standing code violations 
     and withhold the requisite section 8 payment to the landlord. 
     Debars landlords from participating in the program who are 
     convicted drug dealers or if they have been suspended or 
     debarred from other HUD programs by HUD. Permits a 
     conditional approval of HQS by the PHA if the violation is 
     minor and can be corrected within 15 days. If not corrected 
     within 15 days, the PHA can repair and deduct.
       Continues a program to attract pension fund investment in 
     low rent, privately owned housing using section 8 project-
     based assistance.
       Subtitle D: Renewal of Expiring Section 8 Contracts for 
     Section 8 New Construction and Substantial Rehabilitation 
     Projects--Provides a procedure to renew expiring 20 year 
     project-based section 8 contracts while containing costs, 
     protecting tenants, retaining landlords in the program, and 
     preserving affordable housing.
       Requires HUD to renew the section 8 assistance if the 
     building's rents are within 110 percent of the area's FMRs, 
     if requested and permits HUD to renew contracts on a budget 
     basis, if rents are higher than 110 percent.
       If the building's rents are not supported by the budget-
     based analysis, then HUD must negotiate with the landlord and 
     can insist that he refinance the mortgage to take advantage 
     of a lower mortgage interest rate, or reduced debt service, 
     thereby reducing the rents and the cost of section 8 
     contracts.
       If the owner opts out of the program, HUD can recapture the 
     section 8 project-based assistance from his building and 
     attach it to another building elsewhere in the community. 
     Tenants displaced as a result of such an opt-out are entitled 
     to tenant-based section 8 assistance to relocate elsewhere in 
     the community.
       Subtitle E: Homeownership Programs--Reauthorizes the HOPE 
     Single and Multifamily Sale Programs which attach section 8 
     assistance to HUD-held foreclosed properties in order to 
     resell them to low and moderate income renters and owners. 
     Sets a 25 percent match for each program.
       Continues and streamlines the National Homeownership Fund, 
     permitting mortgage interest write-downs to one percent and 
     grants to cover first-time homebuyer downpayments and closing 
     costs. Second mortgage assistance is also continued as an 
     eligible activity.
       Broadens the section 106 Housing Counseling program to a 
     Housing Counseling for Homeownership and Rental Housing 
     Choice program. This incorporates HUD's proposed Choice in 
     Residency proposal, focussing on public housing and section 8 
     renters to make them aware of housing opportunities 
     throughout a metropolitan area.
       Subtitle F: Other Programs--Expands the current Public 
     Housing Drug Elimination Grant Program into a general crime 
     deterrence and reduction program and provides the bulk of the 
     funding in a formula grant to PHAs with 250 or more units of 
     public housing that have crime problems. The new program is 
     called Community Partnerships Against Crime (COMPAC).
       Reauthorizes the current Low Income Housing Preservation 
     program and the Flexible Subsidy programs.
       Broadens the Youthbuild program to permit the employment of 
     young adults in this job training program on new construction 
     projects, certain community facilities, as well as the 
     current rehabilitation of vacant housing. Targets 80 percent 
     of funds to youths in families with incomes less than 50 
     percent of area median.
       Requires HUD to provide section 8 assistance to tenants in 
     HUD-held multifamily foreclosed properties if HUD finds, 
     after the two year rent freeze provided in law, that they 
     would be paying significantly more rent.
       Directs HUD to provide guidance to PHAs and private 
     landlords with section 8 tenants on proper methods of 
     screening, admission, and eviction of current and former 
     users of illegal drugs and alcohol abusers. Guidelines are to 
     be based on the Public and Assisted Housing Occupancy Task 
     Force report of April 7, 1994 and shall be issued no later 
     than December 31, 1994.
       Authorizes a three-year, three-city demonstration of 
     consolidated waiting lists throughout a metropolitan region 
     for applicants for public, section 8, HOME, and other 
     federally-assisted housing. Waiting list to be managed by 
     regional planning organizations, a designated PHA, a 
     nonprofit entity, or consortia of local agencies. Provides 
     incentives to owners to refinance high mortgage rate section 
     8 projects to today's lower rates.

                 Title II--HOME Investment Partnerships

       Reauthorizes the HOME program for FY 1995 and 1996. 
     Requires the Secretary to publish a notification of funding 
     availability in the Federal register no later than 90 days 
     after appropriation for CHDO technical assistance. Clarifies 
     that the costs of financing under the program include debt 
     service reserves, credit enhancements and loan guarantees, 
     and that eligible rental housing is housing with rents not 
     greater than existing fair market rents. Requires that 
     prevailing labor wage rates not be applied to HOME funds used 
     to acquire land.

                 Title III--Supportive Housing Programs

       Reauthorizes supportive housing programs for persons with 
     special needs, including supportive housing for the elderly 
     (section 202) and supportive housing for persons with 
     disabilities (section 811); the Housing opportunities for 
     persons with AIDS (HOPWA) program; the revised congregate 
     housing services program; and service coordinators in mixed 
     populations buildings. Makes elder cottage housing a 
     permanent eligible housing type for both the section 202 and 
     811 programs. Makes permanent the housing for elderly 
     independence program. Makes other program improvements to the 
     section 811, revised congregate services (revising the 
     definition of frail elderly and reducing the match 
     requirements) and HOPWA programs.

       Title IV--Mortgage Insurance and Secondary Mortgage Market

       Authorizes the Secretary to enter into commitments to 
     insure mortgages under the National Housing Act for a 
     reauthorized amount to be appropriated. Extends the date of 
     termination for the Federal Housing Administration's Board to 
     January 1, 1997.
       Increases the maximum mortgage amount and the base floor 
     amount for the FHA single family program to 85% and 50% of 
     the conforming loan limit for FNMA and FHLMC, respectively, 
     and allows for those limits to adjust annually.
       Authorizes the Secretary to refinance HUD-Held and HUD-
     assigned mortgages; in high cost areas to enter into 
     arrangements with state or local agencies to share the risk 
     in insuring mortgages; to delegate, under the direct 
     endorsement program, the authority to insure mortgages 
     involving single family dwellings; to insure a mortgage that 
     secures a single family residence located on property owned 
     by a community land trust; and, to insure a mortgage securing 
     a single family property in which the effective rate of 
     interest is fixed for not more than 5 years and is adjusted 
     upon the expiration of that fixed period for the remaining 
     term of the mortgage at a fixed or an adjusted rate.
       Clarifies that the Secretary must approve point-of-use and 
     point-of-entry water treatment equipment and water 
     purification systems as acceptable water purification units. 
     Strikes the provision which allows an increase in the amount 
     of mortgage insurance if the increase is due to the 
     installation of a solar energy system.
       Extends the date of termination to September 30, 2000 for 
     the home equity conversion mortgage demonstration program, 
     and increases the number of mortgages insured under the 
     program to 50,000. Makes technical changes to the energy 
     mortgage pilot program.
       Establishes a National Commission to recommend to Congress 
     the appropriate future role of the Federal Housing 
     Administration.
       Extends the authorization to auction section 221(g)(4) 
     multifamily mortgages through December 31, 2005. Provides 
     that credit subsidy for refinanced FHA-insured multifamily 
     housing mortgages shall be calculated based only the amount 
     which exceeds the outstanding principal balance of initial 
     mortgage.
       Extends authorization of the multifamily risk sharing 
     demonstrations with the Federal National Mortgage Insurance 
     Association, the Federal Home Loan Mortgage Corporation and 
     other financial institutions for fiscal years 1995 and 1996 
     and extends the authorization for the risk sharing 
     demonstration with state housing finance agencies for fiscal 
     years 1995, 1996, and 1997.
       Reauthorizes and extends the Emergency Homeowners Relief 
     Act of 1975 for FY 1995 and 1996. Extends the authorization 
     for the Indian Housing Loan Guarantee program through fiscal 
     year 1996. Limits aggregate GNMA mortgage-backed security 
     guarantee authority to $130 billion in each of fiscal years 
     1995 and 1996.
       Requires the Secretary through the Federal Housing 
     Commissioner to review the report issued by the Urban 
     Institute, entitled ``Performance of HUD Subsidized Loans: 
     Does Cooperative Housing Matter?''. Requires the Secretary to 
     study the patterns of lending and insurance activity of 
     private mortgage lenders and private mortgage insurers.

                         Title V--Rural Housing

       Clarifies requirements for moratoria and for re-amortizing 
     section 502 single family loans and makes the deferred 
     mortgage program permanent.
       Establishes a streamlined refinancing program for the 
     section 515 rural rental housing program and provides 
     permanent authorization for the section 515 program. Provides 
     technical changes and reforms to the section 515 program 
     including a prohibition on transfers and authority to provide 
     loans for a term of 30 years.
       Provides technical and clarifying changes and reforms for 
     the rental housing prepayment program, including a 
     prohibition on equity loans as incentives, unless necessary 
     to prevent displacement or provide just compensation; and 
     clarifies that incentives are available only for projects 
     subject to the prepayment provisions at the 20 year mark, not 
     before.
       Extends the designation period for the targeted under-
     served areas program from 1 year to 2 years, except on tribal 
     lands where the designation will be in place for 3 years, 
     authorizes a set aside of up to 10 percent for communities 
     with severe unmet housing needs, and extends the nonprofit 
     set aside for the section 515 program.
       Provides for operating assistance in lieu of rental 
     assistance for migrant farmworker housing.
       Establishes a rural community development initiative to 
     attract foundation and other private funding for capacity 
     building for nonprofit intermediaries in rural areas and 
     establishes a delegated processing demonstration for section 
     502 loans in under-served areas. Establishes a technical 
     assistance program for Native American areas to enable tribes 
     and members of tribes to apply for rural housing program 
     assistance.
       Establishes a section 515 rural housing guaranteed loan 
     demonstration of 25 projects with a total loan obligation not 
     to exceed $50 million in each year.

                    Title VI--Community Development

       Reauthorizes the following programs to be appropriated for 
     FY 1995 and 1996: (1) the Community Development Block Grant 
     (CDBG) program, (2) the section 108 loan guarantee program, 
     (3) Special Purpose Grants for insular areas for technical 
     assistance, for historically black colleges, for technical 
     assistance for joint community development, for inner-city 
     revitalization, for community adjustment, to purchase fire 
     suppressing foam and to train fire fighters to use the foam 
     in order to reduce fire-related deaths, and for work study 
     grants for minority and economically disadvantaged students, 
     (4) Neighborhood Reinvestment Corporation, and (5) John Heinz 
     Neighborhood Development.
       Expands the eligible activities for the CDBG loan guarantee 
     program's economic development grant assistance to include 
     the construction, rehabilitation or financing of retail and 
     service facilities, mixed-use projects that link economic 
     development activities and housing, community centers, 
     farmers market and community business expansions.
       Authorizes the Secretary to provide assistance directly to 
     community-based and capacity-building organizations in order 
     to conduct neighborhood community development as well as 
     affordable housing, revitalization, and economic development 
     activities. Creates a new program that will address the needs 
     of border communities which have sub-standard housing.

            Title VII--Regulatory and Miscellaneous Programs

       Reauthorizes the following for FY 1995 and FY 1996: the 
     Fair Housing Initiatives Program; HUD program monitoring and 
     evaluation; HUD salaries and expenses; HUD research and 
     development; the National Institute of Building Sciences; 
     Residential lead-based paint hazard reduction grant program; 
     New Towns demonstration program; National Institute of 
     Building Sciences; National American Indian Housing Council; 
     and the Housing Assistance Council.
       Makes the following programmatic changes: permits HUD to 
     transfer up to 10 percent from any technical assistance for 
     HUD staff professional development training; requires HUD to 
     report on authorized but unappropriated programs; requires 
     HUD construction contractors to make a good faith effort to 
     employ women; requires HUD, for each notice of funding 
     availability, to provide an estimated date for notification 
     of grant awards; removes Government National Mortgage 
     Association employees from HUD full time equivalent 
     employment ceiling; requires wage matching with IRS records 
     for residents of section 515 rural rental housing; requires 6 
     month GAO study of lead based paint detection technologies 
     and tenant notification procedures; authorizes HUD to enforce 
     compliance with Home Mortgage Disclosure Act reporting 
     requirements through imposition of civil money penalties on 
     non-supervised lending institutions; extends the termination 
     date for the Federal Deposit Insurance Corporation affordable 
     housing program; and allows state agencies to qualify as 
     sureties.

    Title VIII--Housing Programs Under Stewart B. McKinney Homeless 
                             Assistance Act

       Reatuhorizes and consolidates the Stewart B. McKinney 
     homeless assistance programs and implements a formula-driven 
     funding mechanism. Maintains as a competitive program the 
     section 8 single room occupancy program. Moves the rural 
     hopelessness program to the Department of Agriculture. 
     Reauthorizes the Federal Emergency Management Agency 
     Emergency Food and Shelter program and the HUD Innovative 
     Homeless Demonstration program.


     important provisions of H.R. 3838--the housing and community 
                        development act of 1994

       1. FHA mortgage limits: A broadening, at both the low and 
     high end.
       2. Sec. 8 contract renewals: Preservation of the current 
     affordable housing stock through a new, cost-saving section 8 
     contract renewal process.
       3. Sec. 8 merger: A merger of section 8 certificates and 
     vouchers into one streamlined program.
       4. Homeless block grant: A block granting of six HUD 
     homeless programs to achieve administrative efficiencies.
       5. Public housing rent reform: Rent reform for public 
     housing residents.
       6. Demolition and replacement of public housing: More 
     flexibility for localities to meet the public housing one-
     for-one replacement requirements of current law.
       7. COMPAC crime grants for public housing: A broadening and 
     formula funding of public housing crime reduction funds.
       8. Enterprise-empowerment zone funding: Funding 
     authorization for enterprise and empowerment zones.
       9. Rural Housing Program reform: Reform of the section 515 
     Rural Rental Housing Program.


                  hud proposals: what happened to them

       The Department proposed 12 new programs and 6 program 
     modifications.
       1. McKinney homeless program block grant--Included in the 
     bill (Title VIII) and authorized at $1.2 billion for FY 96 
     Transition year of FY 95 permitting consolidated application 
     Programs combined: Emergency Shelter Grants; Transitional 
     Housing; Shelter Plus Care; Safe Havens; Innovative Homeless 
     Demonstration Programs left free-standing: Sec. 8 Single Room 
     Occupancy and Shelter Plus Care rental assistance.
       2. Sec. 8 Set-Aside for Homeless--Not included. Leave to 
     local discretion. Too many set-asides of Sec. account at 
     federal level already.
       3. Enterprise and Empowerment Zone funding: $500 Million--
     Included in bill (Sec. 635). Authorized amount split $250 
     million in each of FY 95 and FY 96. HUD indicates initial 
     designations will be made in September for approximately half 
     the authorized number of zones.
       4. Increase in FHA mortgage loan limits to $172,675--
     Included in bill along with an increase in the floor (lowest 
     mortgage amount) which FHA may insure. Both ceiling and floor 
     limits are indexed to secondary mortgage market's conforming 
     loan limits.
       5. National Homeownership Fund--funding--For the first time 
     since this program, authored by myself, was authorized in 
     1990, HUD asked for funding. Bill authorizes $115 M in FY 95 
     and $215 M in FY 96.
       6. FHA Single Family risk-sharing demonstration--Sec. 411 
     of the bill. Limited to high cost housing markets.
       7. LIFT--Leveraged Investment for Tomorrow grants--Included 
     within Economic Development Grants (Sec. 606), a 
     discretionary grant program requested by the Department and 
     authorized last year in the Hud Demonstration Act.
       8. Community Viability Fund--Activities included within new 
     consolidated program of capacity building for nonprofits and 
     neighborhood based community development organizations (Sec. 
     633).
       9. COMPAC--Community Partnerships Against Crime--Included 
     in bill (Sec. 181) with five-yr. Formula funding for PHAs 
     with 250 or more units that have crime problems in their 
     public housing communities.
       10. Public Housing Modernization Loan Guarantee--Managers' 
     Amendment includes authority for PHAs to borrow up to five 
     times their annual Mod grant amount to leverage private funds 
     to build replacement housing and get ahead of their 
     Modernization backlog by modernizing more units sooner.
       11. Economic Opportunity Centers--Included within current 
     public housing Family Investment Centers as one-stop job 
     training, resident business development, and supportive 
     service centers.
       12. Tenant Opportunity Program--Replaces current public 
     housing resident management technical assistance and training 
     program. Expands eligible uses to include job training, and 
     other self sufficiency activities beyond resident management 
     of public housing.
       13. Choice in Residency--Included with current sec. 106 
     Housing Counseling program. Counsels public housing and Sec. 
     8 residents and applicants to look for and move to housing 
     outside pockets of poverty.
       14. Metro-Wide Consolidated Waiting List Demonstration--
     Sec. 187 of bill.
       15. Assistance to Impoverished Border Communities--Sec. 634 
     of bill (Colonias Assistance program).
       16. HOME loan guarantee authority--Included as eligible use 
     under HOME program.
       17. Pension Fund Investment in Affordable Housing--
     Continued with 15 yr. project-based Sec. 8 assistance at $150 
     M in FY 95 and $200 M in FY 96.
  Madam Chairman, I reserve the balance of my time.
  Mrs. ROUKEMA. Madam Chairman, I yield myself such time as I may 
consume.
  Madam Chairman, I rise, as the ranking Republican on the Housing 
Subcommittee, to express my strong support for H.R. 3838, the Housing 
and Community Development Act of 1994.
  In reviewing this legislation, my colleagues should know that the 
same commitment to produce a comprehensive, bipartisan bill which 
helped pass the 1990 and 1992 Housing Acts under the Bush/Kemp 
administration, has again guided our actions under the new 
administration.
  In this respect, I want to commend HUD Secretary Cisneros for his 
total dedication and cooperation in working with us to achieve this 
legislation.
  I also want to commend Chairman Gonzalez for his sincere willingness 
to work with me and the other Members on the Republican side and for 
accepting many of the ideas, initiatives, and alternative housing 
polices which we presented. Without his total cooperation we could not 
have been successful.
  This is in sharp contrast to past years when irreconcilable conflicts 
arose giving housing bills the reputation of being mired in 
controversy.
  For my colleagues on this side of the aisle, I want to say that the 
Republicans were very much a part of the formulation of this bill with 
several provisions directly attributable to their efforts.
  Just to name a few:
  Mr. Bereuter for his efforts on rural policy and surplus property.
  Mr. Ridge for his efforts on the homeless formula grant.
  Mr. Richard Baker for his efforts on public housing replacement.
  Mr. Knollenberg for his outstanding effort on rent reform.
  Ms. Pryce for her efforts on section 8 reform.
  Mr. Lazio for his amendment creating a public housing witness 
assistance program which will help fight crime in public housing.
  Mr. Grams for his initiative on behalf of elderly persons living with 
the nonelderly.
  And Mr. Castle for his efforts, which I strongly support although 
unsuccessful, to rid public housing of violent crime.
  My colleagues, H.R. 3838 is a good bill.
  H.R. 3838 balances the need for housing resources with the fiscal 
realities this Nation faces.
  While the bill authorizes some $31 billion, this represents a modest 
1.9 percent increase over the fiscal year 1994 appropriation for HUD 
and the fiscal year 1995 administration request.
  And, compared to the fiscal year 1994 authorized funding levels 
approved by this House in 1992, this bill actually represents a 
reduction of approximately $2 billion.
  Despite our tight-fisted funding approach, the committee was able to 
reverse several severe program budget reductions requested by the 
administration. These reversals were achieved because the committee 
felt the ``Rob-Peter-to-pay-Paul or Pauline'' approach was not 
acceptable and that funding for new programs could not come at the 
expense of existing programs.
  One example was the committee increase for funding for the much 
needed, and popular, HOME investment partnership from the requested 
level of $1 billion to $1.5 billion.
  The committee also restored the serious reduction in the section 202 
program for the elderly from the administration request of $150 million 
to $1 billion.
  H.R. 3838 also strikes the right balance between authorizing several 
of Secretary Cisneros' new programs without sacrificing existing 
effective programs.
  In fact, 15 new programs were requested by the administration. 
However, because of the continuing management problems and staff 
shortages at HUD, as documented by both the GAO and the HUD IG, the 
committee agreed to create only three new programs. All of the other 
new initiatives were redesigned to fit into existing HUD programs.
  H.R. 3838 also incorporates several housing and community development 
policies long championed by Republican members, including public 
housing rent reform, demolition and replacement of public housing, 
additional provisions to help address the mixed populations issue and 
the consolidation of Federal homeless assistance programs.
  Madam Chairman, let me at this point take a moment to address just a 
few of the more significant issues addressed in this bill.
  Perhaps the most notable of the changes made to housing policy was in 
the area of public housing reform.
  H.R. 3838 takes action to help turn around public housing by 
reversing budget reductions in the operating and modernization 
accounts. The bill also allows modernization funds to be used for the 
replacement of obsolete and unlivable housing units.
  H.R. 3838 makes great strides to remove the disincentives to work by 
initiating significant rent reforms which actually reward public 
housing residents who seek employment.
  Here, I want to commend the work of our colleagues, Mr. Knollenberg 
and Ms. Waters for their hard work in shaping the rent reform 
provisions in this bill.
  Among the changes, the bill provides a 20-percent earned-income 
deduction for those who work and allows residents whose children 
between the ages of 18 and 21 who work to discount their income for 
rent purposes.
  And, the bill provides, at the option of the PHA the ability to 
freeze a resident's rent if that person finds a job after being 
unemployed for more than 1 year.
  H.R. 3838 helps address the serious problems of crime and drugs in 
public housing by initiating a new anticrime program known as COMPAC 
and it allows public housing authorities to review the criminal records 
of housing applicants in order to help screen those who enter public 
housing.
  Unfortunately, it was in this area that the Committee failed to enact 
the one important effort which could have made a significant impact on 
the lives of our residents. This unfortunate shortcoming involving guns 
in public housing is the singular failure of this legislation.
  During subcommittee mark-up, the committee accepted an amendment 
sponsored by Mr. Castle, and Barrett which would have permitted the 
residents of public housing to hold a referendum to ban guns in their 
housing complexes.
  I supported this amendment as the one significant effort which could 
help stop the insanity of violent crime among our poor families.
  My colleagues, 3.2 million Americans live in public housing. 
Unfortunately, we all are aware that, many of these developments are 
plagued with high rates of drug and other criminal activity.
  And, most especially the residents of many of these developments are 
increasingly confronted with violence associated with the use of guns. 
One only needs to read the newspaper accounts of families in public 
housing forced to have their children sleep on the floor under their 
mattresses or in their bathtubs because they fear being shot, to fully 
appreciate the magnitude of this problem. Or instruct their children to 
lie on the floor while watching television to avoid possibility of 
ricocheting bullets.
  The Barrett, Castle, Roukema amendment adopted in subcommittee took a 
reasoned and rational approach to this severe problem.
  Regrettably, this much-needed amendment was deleted in full 
committee.
  This was not an issue of constitutional rights to own a gun. This was 
an issue of the rights of the majority of the residents in a public 
housing development to live in a safe home.
  This was not an issue of making residents in public housing second-
class citizens subject to different standards of behavior or laws. This 
issue was brought to us by the very PHA's and residents who are most 
affected by this problem.
  This was an issue of empowering poor people to act in their own best 
interest to provide a safe and decent environment to live in and to 
raise their children.
  This was not an issue of gun control, this was an issue of crime 
control. This was an honest issue of keeping some sort of control over 
gun-related violence and preventing nonresidents from bringing guns 
into the developments.
  Madam Chairman, for all the effort we are trying to make in this 
Congress to pass a crime bill to help our citizens feel safe and 
secure, the failure to keep this provision in the bill represents a 
major gap in our efforts.
  Also for public housing, H.R. 3838 rewrites section 18 of the 1937 
Housing Act making the most significant changes to the rules governing 
the demolition and replacement of obsolete public housing units. When 
fully implemented, these changes will go a long way in helping to rid 
the Nation of undesireable and mostly vacant high-rise housing.
  Another provision in this bill would raise the loan limits for the 
FHA single family program.
  As my colleagues are aware, I have had a long-standing position that 
no changes should be made to the operation of the FHA until the mutual 
mortgage insurance [MMI] fund met the capital levels mandated by the 
1990 Housing Act.

  Just before the committee mark-up, the results of the annual 
actuarial report and audit of the financial health of the MMI fund 
conducted by Price/Waterhouse and reviewed by the HUD IG, confirmed 
that the MMI fund had reached a capital level of 1.44 percent.
  This was truly good news and allowed several of our members to 
support the proposed changes.
  This is not to say that the FHA is out of the woods. The audit 
pointed out there are serious management weaknesses within the FHA 
especially with staff shortages. But these problems exist whether the 
FHA insures a $125,000 loan or a $172,000 loan.
  While I will remain concerned about the long-term problems of the 
FHA, I do not feel the increase the high-cost area loan limit poses any 
risk to the MMI fund at this time. Of course, strict underwriting and 
constant diligence must continue.
  Finally, through a strong bipartisan effort, and along the lines of 
an original Roukema/Ridge proposal, H.R. 3838 transforms the current 
six McKinney Homeless Assistance Act programs into a single, formula-
driven grant program beginning on fiscal year 1996.
  Under this revision, participating State and local jurisdictions will 
create local advisory boards which will be responsible for the 
development of a comprehensive homeless assistance strategy and a plan 
to carry out that strategy. The funding will be distributed on the 
basis of 70 percent allocated to the local communities and 30 percent 
to the States.
  This change, by refocusing the effort to the State and local level, 
will help make the national effort to solve the problems of 
homelessness a much more effective and efficient program.
  In conclusion, Madam Chairman, I again want to say that the Banking 
Committee has presented the House and the administration a good, 
balanced, bipartisan bill in which the Republicans played a major role 
in formulating.
  I urge the Members of this House to vote ``yes'' on H.R. 3838.
  Madam Chairman, I include for the Record the following article:

               [From the Washington Post, July 20, 1994]

                        A Promising Housing Bill

       Congress may be about to pass a housing bill that deserves 
     more attention than it has received. The troubled public 
     housing program in particular would be pointed in a new 
     direction. The projects would be opened up to a slightly 
     higher income group than now. The bill would also make it 
     easier to replace and break up the concentrated inner-city 
     projects that are the focal point of the program's problems.
       These ideas bespeak a changed trend in the climate in which 
     federal housing policy is made. The housing debate for most 
     of the Reagan-Bush era was rigid and ideological. The 
     administrations wanted mainly to cut the various subsidy 
     programs for the poor on grounds they were too expensive, 
     counter-productive and none of the government's business. The 
     housing committees of Congress were just as determined to 
     protect them. The two sides fought to a kind of lifeless draw 
     in which there was little middle ground. The new 
     administration has put the discussion back in the real world.
       The rent rule now with regard to public housing is that 
     tenants pay 30 percent of their adjusted incomes. The 30 
     percent becomes a kind of tax on extra earnings atop all 
     other taxes (and in addition to the phase-out of other 
     federal benefits as income rises). The effect is either to 
     discourage earnings or to cause the upwardly mobile to leave. 
     That adds in turn to the pressure on public housing.
       Partly as a matter of policy--there are not enough units to 
     serve all the poor, and Congress has said the poorest should 
     be served first--the relative income of public housing 
     tenants has declined in recent years. Because as a group they 
     are poorer than they used to be, as a group they have more 
     problems. The projects reflect it. The bill seeks modestly to 
     reverse that trend by to some extent divorcing rent from 
     income through a system of rent ceilings, partial income 
     disregards and delays in what would otherwise be rent 
     increases. The people in public housing will still be poor 
     but as a group not as hopelessly so; that can't be bad.
       To preserve an already insufficient stock of public housing 
     in an era of budget cuts, it was also the rule that local 
     housing authorities could only get rid of units if they 
     replaced them. Much of the money for such replacements came 
     through a modernization program. The result was that most 
     replacements tended to be in the same configurations on the 
     same sites.
       The new rule still would mostly require replacement units, 
     but not so much on the same site. The modernization money 
     could be used to spread the units elsewhere, including, if 
     the administration gets it way, into adjoining jurisdictions 
     if they agree to receive them. The effort is to ease the 
     heavy concentration of problems that comes with the 
     concentration of subsidized housing for the poor. That could 
     prove to be difficult or troublesome, but there's time to see 
     how it goes, and its worth a try.

                              {time}  1810

  Madam Chairman, I reserve the balance of my time.
  Mr. GONZALEZ. Madam Chairman, I yield 4 minutes to the gentleman from 
Minnesota (Mr. Vento), the ranking member of the subcommittee.
  Mr. VENTO. Madam Chairman, I thank the gentleman for yielding time to 
me.
  Madam Chairman, I rise in support of H.R. 3838, the Housing and 
Community Development Act of 1994, which authorizes $28.1 billion in 
fiscal year 1995 and $30 billion in fiscal year 1996 for HUD community 
development and housing programs. The bill also authorizes $3.2 billion 
Farmers Home Administration [FmHA] and rural housing programs 
administered through the Agriculture Department.
  This bill has been a significant undertaking, pulling together the 
innovative initiatives and ideas of our Secretary at HUD, Henry 
Cisneros, and the new administration, members of the Banking Committee 
and others in Congress--for our important housing programs--in urban, 
suburban, and rural America.
  I am especially pleased, as the chairman on the Speaker's task force 
on homelessness, that we are acting today upon an important revision of 
the HUD McKinney homeless assistance programs. Title 8 of this bill 
will create a new flexible grant program, consolidating several current 
programs--emergency shelter grant, supportive housing, safe havens, and 
shelter plus care--for formula allocation. These provisions were 
modeled on the comprehensive local and State planning for homelessness 
advocated by the Speaker's task force, by the Federal plan to end 
homelessness entitled ``Priority Home,'' and of course, through the HUD 
legislation sent to us by Secretary Cisneros and his able Assistant 
Secretary, Andrew Cuomo. It is a major expansion of McKinney, nearly 
doubling the program and reforming it.
  H.R. 3838 will also reauthorize the Interagency Council on the 
Homeless, maintain the current FEMA Emergency Food and Shelter Program 
at FEMA, and maintain section 8 SRO Program as a separate categorical 
program so that it can continue to provide the larger capital grants on 
annual basis to make permanent housing--some 2,000 units last year. Our 
bill also moves the rural homelessness assistance program to the 
Agriculture Department.
  Our provisions incorporate many of the concepts put forth by the task 
force, the Federal plan and others, to embrace the nonprofits who carry 
much of the work load on this issue and to simplify and consolidate the 
Federal programs for homelessness assistance at HUD.
  Of course, we are continuing to work out some of the differences 
between the various versions of the consolidation, including the 
possibility of speeding up the transition period for regulations and 
implementation and other formula matters such as holding harmless 
funding levels for communities.
  I would like to comment on a couple of other provisions which I have 
worked on, and, of course, those programs that I support. I would like 
to draw my colleagues attention to our provision to expand the drug 
elimination program in public housing and the revised compac initiative 
which is crafted to address broadly crime in and around public housing 
areas.
  The committee's bill is also creating several options for addressing 
equal opportunity and choice in housing in our communities. We are 
including demonstrations for joint waiting lists and providing guidance 
and flexibility where possible to assist with deconcentration issues.
  Madam Chairman, our housing needs are great. Millions of Americans 
live in poverty and only about one-third of them receive any government 
housing aid. Almost 10 million Americans are unemployed. Millions of 
very low income renters live in substandard housing or pay well over 30 
percent of their income for housing. Millions of our citizens are on 
our Nations streets over the course of a year. We need comprehensive 
housing and community development legislation to help us meet the 
promise of decent safe sanitary affordable housing for all Americans.
  An essential component of our housing programs is the FHA Single 
Family Insurance Program which last year insured close to 1 million 
American homes. The accounting firm of Price Waterhouse has produced an 
audit of FHA, the MMI fund is doing fine and is predicted to exceed the 
interim capital standard of 1.25 percent by obtaining 1.44 percent and 
is currently projected to reach 3.41 percent by the year 2000, well 
over the required 2 percent capital ratio.
  Our bill will raise the base loan limit from $67,500 to roughly 
$101,000--50 percent of the Freddie Mac/Fannie Mae conforming loan 
limit--bringing this limit back into the market. This base amount has 
not been adjusted since 1979 and FHA has not kept pace with the market. 
According to National Association of Realtors' figures the only source 
of important information; existing home sales show the median priced 
home in 1993 was $106,800.
  Our bill also broadens the marketability of FHA by raising the 
ceiling loan limits and setting them at 85 percent of the conforming 
secondary FNMA/FM loan limit in high cost States. By broadening the 
market usefulness and appeal of the program, we can keep the FHA fund 
self-sustaining and serving middle-class families striving to achieve 
homeownership.
  Madam Chairman, I would also like to speak in favor of a provision we 
have incorporated, as a result of the good work of our colleague, 
Congresswoman Kaptur. Included in the bill is a version of the 
community viability fund proposed by the administration to help provide 
technical and other assistance to neighborhood groups and community 
development organizations at the local level to expand their capacity 
to serve. With this, we will be creating a Geno Baroni Recognition 
Award with a 10-percent set-aside of these capacity building funds to 
acknowledge the work of these organizations and to encourage them to do 
more. These recognition awards will allow us to pay tribute to the 
leadership and the vision of a former Assistant Secretary at HUD, Msgr. 
Geno Baroni. The monsignor was instrumental in drawing national 
attention to the plight of America's neighborhoods in the 1970's. His 
work led the grassroots of neighborhood development forward and also 
helped create organizations such as the successful Neighborhood 
Reinvestment Corporation, which carries out vital programs today in 
hundreds of cities around the country.
  Mr. Speaker, I would conclude by thanking the chairman and the 
ranking minority Member, Congresswoman Roukema, and their able staff 
members of the Banking Subcommittee for the their work on this 
important bill. I urge my colleagues to vote in favor and support the 
bill.
  Mrs. ROUKEMA. Madam Chairman, I yield 4 minutes to the gentleman from 
Nebraska [Mr. Bereuter].
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Madam Chairman, I thank the gentlewoman from New Jersey 
for yielding me this time.
  Madam Chairman, this Member rises today in support of H.R. 3838, the 
Housing and Community Development Act of 1994, and commends the 
gentleman from Texas [Mr. Gonzalez], the distinguished chairman of the 
Committee on Banking, Finance, and Urban Affairs, who continues his 
strong interest and leadership in housing and community development; 
the gentleman from Iowa [Mr. Leach], the distinguished ranking member 
of the committee; and the distinguished gentlewoman from New Jersey 
[Mrs. Roukema], the ranking member of the Subcommittee on Housing and 
Community Development of the Committee on Banking, Finance, and Urban 
Affairs, all for their efforts in bringing this measure before us 
today.
  Madam Chairman, there were excellent initiatives from both sides of 
the aisle, and despite debate on some very controversial issues, the 
subcommittee and the committee moved forward in the markup in a 
bipartisan, good-faith effort worthy of further emulation in this 
Congress.
  Madam Chairman, this legislation, H.R. 3838, makes significant 
changes and improvements to a wide variety of the Nation's Federal 
urban, rural, and Indian housing policies and programs. However, for 
purposes of legislative intent, this Member will primarily address his 
remarks to programs on which he has had a special involvement in the 
legislative process this year.

                              {time}  1820

  It includes a demonstration program authored by this Member which 
will create a new loan guarantee program for the development of 
multifamily rural rental housing. Currently the only Federal program 
allowing development of this type of housing is an expensive direct 
loan program which has, unfortunately, been plagued with problems. H.R. 
3838 addresses many of those problems, and does make that program 
better. This Member wants to be clear, that the 515 loan guarantee 
demonstration program proposed by the members is not intended to 
replace the existing program, but to augment it, at a lower cost, to 
reach a segment of our rural population which has been under-served by 
Federal housing programs. The demonstration program will provide a 
Federal guarantee on loans made by private lenders for the development 
of greatly needed rental housing rural areas. In each of fiscal years 
1995 and 1996, 25 developments will be guaranteed by the Farmers Home 
Administration. Developers will bring 10 percent of the cost of the 
project to the table, and private lenders will make loans for the 
balance. The lenders will be given a 100 percent Federal guarantee on 
the loans they make. Unlike the current program, whose full costs are 
borne by the Federal Government, the only costs to the Federal 
Government under this program will be for administrative costs and 
potential defaults. It should be noted that this program is based on 
the very successful FmHA 502 Middle Income Loan Guarantee Program for 
home ownership. That program has a default rate of only 1.59 percent. 
As you can see, Mr. Chairman, loan guarantees are a much more effective 
use of limited Federal dollars. This Member thanks Chairman Gonzalez, 
the gentlelady from New Jersey [Mrs. Roukema], and the members of the 
Banking Committee for their cooperation in including this provision in 
H.R. 3838.
  This Member is also pleased that this measure also reauthorizes the 
Indian Housing Loan Guarantee Program which this Member authored and 
saw authorized in 1992. This program is poised to provide tremendous 
opportunities in Indian country by making private lending available on 
trust land. Again, this is a loan guarantee program, so the costs to 
the Federal Government will be very low and the opportunities to our 
native American citizens will be great.
  This measure makes significant improvements to the Nation's low-
income housing programs as well. The regulatory relief for innovative 
public housing authorities included in H.R. 3838 will allow the 
Secretary of Housing and Urban Development to waive many of the 
burdensome, unnecessary and counter-productive regulations created by 
HUD over the years. While protecting the interests of low income 
tenants, this provision will give innovative public housing authorities 
the means to develop a plan for operation, management, maintenance and 
development which exempts them from the stifling regulations currently 
imposed by HUD. It's a good provision, and this Member is pleased to 
note that it includes many of the ideas included in this Member's 
legislation, H.R. 4165 and H.R. 4432.
  Another positive feature of the bill is rent reform for public 
housing. This provision sets a more rational, fairer policy which 
encourages residents of public housing to work and improve their lives 
without penalizing them for their efforts as current rent policies do. 
The gentlelady from New Jersey [Mrs. Roukema] and the gentleman from 
Michigan [Mr. Knollenberg] are to be especially commended for their 
efforts on this provision and a proposal this member had drafted.
  Perhaps one of the most positive features of this measure is the 
relaxation of the one-for-one replacement rules. This correction of a 
well-intended but failed policy will allow public housing authorities 
to develop safe, decent and livable housing to replace some of the 
worst projects in the nation. Currently, dilapidated, unsafe and badly 
designed housing cannot be demolished unless it is replaced on a one-
for-one basis. Of course, with funding tight, many public housing 
authorities cannot replace this housing and so it sits, empty and 
dangerous, attracting criminal activity and demoralizing those who are 
forced to live near it. This measure allows less than one-for-one 
replacement and the development of better, scattered site, more livable 
housing. This is truly an important improvement to Federal policy.
  Finally, Madame Chairman, H.R. 3838 contains a provision which allows 
public housing authorities to obtain the criminal records of adult 
applicants and residents of public housing. This provision will help to 
foster a safer, more secure environment for the residents of our 
Nation's public housing.
  Madame Chairman, this Member strongly supports this bipartisan 
measure and urges his colleagues to vote for its passage.
  Mr. GONZALEZ. Madam Chairman, I yield 3 minutes to the gentlewoman 
from California [Ms. Waters], a distinguished member of this 
subcommittee and of the committee.
  Ms. WATERS. Madam Chairman, I rise in support of H.R. 3838. H.R. 3838 
reauthorizes a number of important housing and community development 
programs for fiscal year 1995 and fiscal year 1996. As a member of the 
House Banking Committee and the Subcommittee on Housing and Community 
Development, I am proud to have been a participant in this legislative 
effort. I want to commend Chairman Gonzalez and the ranking minority 
leader, Mrs. Roukema, for their leadership in moving this bill through 
both the subcommittee and full committee.
  I want to speak briefly on several measures that are included in this 
bill and tell you why I think they are so important.
  H.R. 3838 makes several crucial reforms. First, it changes the manner 
in which HUD calculates rent for public housing residents, along the 
lines of H.R. 4159.
  I introduced H.R. 4159 as a result of contact being made to me by 
another Member of this body, the gentleman from Georgia [Mr. Bishop]. 
He came to me with some of his constituents from Georgia, and they had 
worked up a wonderful proposal for rent reform and I joined with them 
to make sure we implemented this idea, because I know a lot about what 
was going on in housing projects all over America. I recognized that 
there were many residents who tried to work, who tried to get a job so 
that they could mainstream their lives, only to find for every penny 
they earned, it was being taken away. They did not have the opportunity 
to accumulate any savings. They did not have the opportunity to realize 
the difference in income as a result of the job that they had gotten. 
So this rent reform is extremely important to empowering people. So I 
was fortunate at the initiation of the gentleman from Georgia [Mr. 
Bishop] to introduce that legislation.
  H.R. 3838 modifies rent requirements to exclude a portion of earned 
income from being considered for rent calculation purposes, thereby 
allowing public housing tenants to keep more of the money they earn and 
encourage them to work for additional income. The bill also excludes 
from a family's income calculation, the earned income of young adults 
between the ages of 18 and 21 that live with the family. This is real 
welfare reform, Mr. Chairman. If we are serious about welfare reform, 
we must provide opportunities and incentives for individuals to work 
like the ones contained in this bill.
  Second, H.R. 3838 authorizes $212 million for fiscal year 1995, and 
$225 million for fiscal year 1996 for AIDS housing programs. The bill 
encourages additional input from AIDS service providers and affected 
communities in local planning and application activities.
  H.R. 3838 also reauthorizes and reforms the Section 108 loan 
guarantee program. I have been and continue to be a strong supporter of 
the Section 108 loans because I truly believe they provide meaningful 
resources. This legislation would enhance the economic development 
aspect of the Section 108 program.
  Other programs reauthorized by this legislation include the HOPE and 
HOME programs, Section 8 low-income rental assistance, public housing 
modernization and construction, elderly and handicapped housing, rural 
housing grants and loans, and Community Development Block Grants.
  H.R. 3838 is a good package. I think it represents a shift in the 
housing discussion from one based on ideology to one based on the real 
life problems of people and communities and concrete, meaningful 
solutions to address those problems.
  I support H.R. 3838 and I urge my colleagues to join me in passing 
this very important legislation.
  Mrs. ROUKEMA. Madam Chairman, I yield 3 minutes to the gentleman from 
Louisiana [Mr. Baker].
  Mr. BAKER of Louisiana. I thank the gentlewoman for yielding me the 
time.
  Madam Chairman, I rise to congratulate our leadership and that of the 
other side on a very important aspect of this legislation, dealing with 
a very troubling matter in our Federal housing policy known as the one-
for-one replacement rule that was well intended when first passed to 
require that before any unit of public housing could be demolished, a 
similar unit should be constructed at another location to ensure that 
adequate housing inventory was maintained for all those in need. 
Unfortunately, the Federal Government has not been a very good housing 
manager. In fact, it is probably one of the poorer in the country, 
because resources are stressed, units often suffer in a dilapidated 
condition, we are not able to renovate properly or even do adequate 
maintenance.
  In the case of a project in New Orleans, LA, known as the Desire 
Street project, we find frankly some of the most miserable housing 
conditions in America. Regretfully, although one of the largest housing 
units today, it is one of the lower in occupancy because the units have 
continued to deteriorate, the quality of life there is miserable and 
accordingly suffers from a very high rate of crime.
  The most efficient and logical thing for us to do is not to continue 
to invest additional dollars in this very large and inefficient unit 
but to allow the housing authority there locally to use their best 
initiatives in using scarce taxpayer dollars to create quality housing 
opportunities for those who really need it. It will reduce the total 
number of housing units structurally available but, in fact, will 
increase more units for those who really need it in the New Orleans 
area.
  This waiver provision for the one-for-one housing rule is a very 
important provision, and I wish to commend not only the chairman of the 
full committee, the gentleman from Texas [Mr. Gonzalez], but the 
gentleman from Massachusetts [Mr. Frank], who has been a strong 
advocate for housing in our Nation as well as the gentlewoman from New 
Jersey [Mrs. Roukema] for her hard work in working this compromise 
language in the process. The result I believe is not only a gain for 
those in need of public housing but more importantly a significant gain 
for the American taxpayer, because it means scarce resources will be 
more effectively utilized to provide quality housing for those who need 
it and not to be constrained by artificial rules that force us to 
continue in a very inefficient and irresponsible manner.
  I appreciate the leadership of those on the Committee on Banking, 
Finance and Urban Affairs for inclusion of this provision. I am happy 
to work with them in seeing its adoption.
  Mr. GONZALEZ. Madam Chairman, I yield 2\1/2\ minutes to the gentleman 
from New Jersey [Mr. Klein], a very distinguished member of the 
subcommittee, and, of course, the committee.
  Mr. KLEIN. Madam Chairman, I rise in strong support of H.R. 3838, the 
Housing and Community Development Act reauthorization bill.
  This 2-year authorization--which provides $31.2 billion in fiscal 
year 1995 and $33.6 billion in fiscal year 1996--is a carefully crafted 
bill that provides essential spending authority on a wide range of 
programs that fall under the jurisdiction of the Department of Housing 
and Urban Development.
  I am sad to say that I believe this bill falls short of the amount of 
money needed to adequately address our housing needs across this 
country. But given the limited amount of funds that are available, I 
believe our committee has done a masterful job in striking a careful 
balance between existing programs and several of the new initiatives 
proposed by Secretary Cisneros.
  This bill gives HUD and local housing authorities more flexibility in 
using Federal funds. It relaxes the rent ceilings on working families 
who live in public housing; it simplifies the administration of the 
subsidized private housing program known as section 8 by merging two 
forms of assistance; it modifies the current one-for-one public housing 
replacement rule; and it consolidates existing homeless programs to 
give States, localities, and nonprofit agencies greater latitude in 
combating homelessness.
  This bill also contains a provision I sponsored which would increase 
the amount that can be insured by the Federal Government under the 
FHA's single-family mortgage insurance program.
  As it stands now, the maximum amount that can be insured under this 
program is $151,725. My proposal raises that limit to $172,675.
  It is proposed that is supported by the mortgage bankers, the 
homebuilders, the realtors, and the administration. And it is a 
proposal that has already been included in the fiscal year 1995 VA-HUD-
independent agencies appropriations bill.

  Why do we need to raise the current FHA loan limit? Because middle-
income people in high-cost areas like northern New Jersey and 
California cannot get a loan through the FHA program that exceeds the 
current $152,000 limit. This is despite the fact that the average cost 
of a house in my State exceeds $179,000.
  People in high-cost areas of this country should not be denied access 
to the lower downpayment requirements of an FHA loan simply because of 
where they live.
  And let me set the record straight on one key point. I am not talking 
about rich people buying vacation homes with Government-guaranteed 
financing.
  I am talking about moderate income people, fireman and factory 
workers, most of whom are first-time home buyers, who simply do not 
have enough cash on hand to meet the minimum 5-percent downpayment 
requirements set by most conventional lenders.
  Will an increase in the FHA loan limit put the mutual mortgage 
insurance fund at risk?
  Absolutely not. The recent actuarial analysis of the economic net 
worth of the FHA mortgage insurance fund prepared by Price Waterhouse 
concluded that the capital ratio requirements as established by law 
have been exceeded.
  As with any insurance company, FHA must and should spread the risk of 
possible loss. High balance loans have much lower claim rates than 
lower balance mortgages. Increasing the loan limit will enhance lending 
and the financial standing of the insurance fund. This, in turn, will 
allow the FHA to undertake more outreach to underserved buyers. By 
strengthening the fund, it will give the FHA the ability to make more 
loans to low-income people as well.
  The FHA has and will continue to serve low- and moderate-income home 
buyers throughout the United States. Increasing the loan limit will 
simply insure that home buyers in high-cost areas can finally 
participate in the FHA loan program. In areas where houses are more 
moderately priced, home buyers will benefit from a more solvent 
mortgage insurance fund.
  H.R. 3838 is an excellent bill and it deserves your support. I urge 
all my colleagues on both sides of the aisle to cast an ``aye'' vote in 
favor of this legislation.

                              {time}  1830

  Mrs. ROUKEMA. Madam Chairman, I yield such time as he may consumer to 
the gentleman from Delaware [Mr. Castle], a member of the committee.
  (Mr. CASTLE asked and was given permission to revise and extend his 
remarks.)
  Mr. CASTLE. Madam Chairman, I congratulate all of the leadership for 
putting this bill together.
  Madam Chairman, I rise in support of H.R. 3838, the Housing and 
Community Development Act of 1994. This legislation contains some 
important reforms to our Nation's housing policy, and I believe the 
majority and minority have made a solid effort to produce a bill that 
can win bipartisan support. I do not agree with every provision in the 
bill and I will be supporting some amendments to improve it, but 
overall, I think it does improve our Nation's housing policy and will 
help provide housing to low-income Americans in a cost-effective 
manner. There are a number of issues which I believe deserve particular 
emphasis.


                       violence in public housing

  H.R. 3838 will help public housing authorities reduce the violence 
that plagues too many of our public housing developments. I strongly 
support the amendment adopted to permit PHA's access to the criminal 
conviction records of adult residents and applicants in public housing. 
This information is necessary to help the PHA's provide a safe living 
environment for the law-abiding residents of public housing.
  I am disappointed that the committee failed to adopt an amendment to 
authorize the residents of public housing to conduct referendums to 
register, control, or ban guns from their public housing complexes. 
These referendums would be voluntary and would give the residents the 
ability to combat gun-related violence. The residents of public housing 
want to be involved in solving the problems which face them. We talk a 
lot about empowering residents to improve their lives. The gun 
referendum is a legitimate method to help them to do just that. I want 
to thank my colleagues, Ron Wyden, John Lewis, Tom Barrett, Marge 
Roukema, and Bobby Rush for their leadership on the gun referendum and 
I will continue to work with them to give residents of public housing 
the ability to help rid their communities of gun violence.


                  hud management of existing programs

  Over the past year, the HUD inspector general has reported on serious 
problems in HUD's ability to manage its existing programs. While I 
appreciate Secretary Cisero's efforts to set new priorities and goals 
for the Department, it is critical that HUD concentrate on improving 
the management of the Department and its programs. The inspector 
general has identified major systemic and programmatic issues that make 
up HUD's top 10 management problems. The Department should make 
resolution of these problems an ongoing priority. I am pleased that the 
committee has directed that the majority of HUD's new program 
initiatives be addressed through existing programs. HUD and the 
Congress should concentrate on ensuring HUD can meet its current 
responsibilities before significantly expanding its mission.


              regulatory relief for high performing pha's

  I strongly support the provision in this legislation directing HUD to 
reduce the regulatory burden on well-run public housing authorities. I 
urge HUD to do as much as possible to provide regulatory relief and 
operational independence to high performing PHA's. HUD should consider 
increasing the financial incentives available to these PHA's. If public 
housing authorities are meeting the goals of Federal programs, they 
should be given increased flexibility to operate these programs.


                           mixed populations

  Senior citizens in public housing continue to express their concern 
over the threat posed by the presence of young, disabled individuals in 
housing which should be reserved for the elderly. There is a particular 
problem with individuals with a drug or alcohol dependency. I support 
the provision adopted by the committee which will allow expedited 
eviction proceedings for residents who threaten the safety of other 
residents. I urge my colleagues to support an amendment which will be 
offered by Peter Blute to strengthen this provision. The Blute 
amendment will require the eviction of disruptive tenants after three 
documented infractions and improve the front-end screening process to 
prevent nonelderly drug and alcohol abusers from being admitted to 
senior housing. Let us help our low-income elderly citizens live in 
safety. Support the Blute amendment.


                            FHA loan limits

  Madam Chairman, I have strong reservations over the bill's provisions 
to increase the loan limits for the FHA's single family mortgage 
program. The Federal Government should not be in competition with the 
private mortgage industry. In addition, I am concerned that the 
increase in the FHA limits, particularly increasing the loan limit in 
high cost areas, may present a threat to the soundness of the mortgage 
insurance fund. I believe that this issue should be revisited in 
conference.
  While I do not support every aspect of this legislation, in total it 
is a good piece of legislation and deserves approval by the House. I 
congratulate Chairman Gonzalez, Mrs. Roukema, and the members of the 
committee for their work on the bill.
  Mrs. ROUKEMA. Madam Chairman, I yield 1 minute to the distinguished 
gentleman from Iowa [Mr. Leach], the ranking member of the full 
committee.
  (Mr. LEACH asked and was given permission to revise and extend his 
remarks.)
  Mr. LEACH. Madam Chairman, I am pleased to support H.R. 3838, the 
Housing and Community Development Act of 1994. The Republican Members 
have been active participants in the development of this legislation; 
in particular, I want to acknowledge the leadership of the ranking 
member of the Subcommittee on Housing and Community Development, Mrs. 
Marge Roukema, along with Representatives Doug Bereuter, Richard Baker, 
Tom Ridge, Craig Thomas, Deborah Pryce, Joe Knollenberg, Richard Lazio, 
Rod Grams, and Michael Castle. It is with that bipartisan spirit and 
Chairman Gonzalez's cooperation and comity that I ask my colleagues to 
support a bill that addresses pressing housing problems in a 
responsible manner. This legislation represents an impressive and 
welcome examination of significant housing reforms, which in the past 
have treated with unnecessary partisan debate. Most important, this 
legislation attempts to reach a balance that maximizes the investments 
made by the American taxpayers to sustain the rebuilding of our 
communities started by the President's predecessors.
  In public housing we have made great strides in the area of rent 
reform, through a bipartisan provision that will, in effect, provide 
incentives for families residing in public housing to work or seek 
employment with higher wages. Current law has required public housing 
authorities to automatically adjust a tenant's rent calculation--based 
on the 30 percent of income rule--when a family's income increases. In 
certain circumstances, families who have struggled up the economic 
ladder find themselves penalized once they have succeeded in finding 
employment or improving their financial circumstances. The committee 
bill has responded to this issue by authorizing a public housing 
authority to not count, up to 18 months, earned income when a family 
member becomes newly employed. This response will hopefully be an 
impetus for families to empower themselves to improve their employment 
and financial condition. It is these types of improvements that will 
sustain a public housing development with an improved income-mixed 
population, which ultimately stabilizes a community.
  One of the most significant accomplishments of this legislation is 
the committee's response to the ``one-for-one'' replacement rule, 
codified as section 18 of the National Housing Act of 1937. In effect, 
a waiver is provided, given certain conditions such as population 
trends and local housing conditions, which allows a Public Housing 
Authority to demolish dilapidated and uninhabitable public housing 
without replacing each unit with a unit. This long overdue provision 
allows PHA's to reduce density of very low and low-income minority 
residents and creates incentives for HUD to update and streamline the 
current demolition-disposition process with a time specific approval 
process. In addition, in attempts to respond in a fiscally prudent 
manner, this legislation allows PHA's authority to use modernization 
funds for replacement housing when they can show that it is more cost 
effective to replace the affected units as opposed to modernizing.
  And, it appears that public housing issues continue to involve 
extensive debate on mixed populations. In the past, this issue was so 
controversial as to be a driving force behind passage of the housing 
and community development bill of 1992. I believe that the intent of 
title VI of the 1992 legislation was to allow public housing 
authorities and managers of federally assisted facilities flexibility 
in housing the elderly and young disabled in the most appropriate 
residential setting. The 1992 legislation provided for supportive 
services as needed, and permitted facilities for the elderly to 
continue to house principally the elderly. Further, the 1992 
legislation ensured that the disabled received access to affordable 
housing equal to that available to the elderly, although there 
continues to be a problem with alcoholics and drug abusers. In an 
attempt to resolve those ongoing conflicts between two population 
groups with distinct needs, I am happy that the committee approved a 
measure that would allow expedited eviction proceedings if a resident's 
behavior ``constitutes a threat to the health, safety, or right to 
peaceful enjoyment of the premises.'' Although this measure may not be 
a panacea for all the unresolved problems of what we call mixed 
populations, I am hopeful that HUD will develop regulations and 
policies sensitive and responsive to this issue. Otherwise, absent 
initiative by HUD, I may find it necessary to support additional 
legislation to effectuate an appropriate change.
  In tackling crime in public housing, the administration's new 
program, the Community Partnership Against Crime [COMPAC], is a 
refinement of the previous administration's Public Housing Drug 
Elimination Program [PHDEP] by applying it to all types of crime, not 
simply crime that is drug-related. Although COMPAC will expand our 
efforts to combat crime, I am somewhat cautious because of the funding 
allocation formula that appears to be in favor of larger public housing 
authorities with 250 or more units. There are numerous small public 
housing authorities doing great work, in terms of crimefighting and 
prevention, that I have been reassured will receive appropriate 
funding.
  To show how programs such as COMPAC can have an enormous impact, I 
want to highlight a partnership formed in Clinton, IA, between the 
Clinton Housing Authority and the Clinton Police Department to reduce 
the impact of drugs, gangs, and alcohol on the families in public 
housing. This partnership was funded by the public housing drug 
elimination grant program and enabled the Clinton Police Department to 
assign a police officer to the housing authority to do a variety of 
functions. The duties of this officer, Pat Cullen, include criminal 
background checks, tenant patrols, intervention services, developing 
service linkages, investigating crimes, creating youth and adult 
activities, and eliminating drugs and gangs. The success of this 
partnership has been phenomenal. The officer assigned to the Clinton 
Public Housing Authority, known as Officer Pat, not only serves as an 
authoritative figure, but interestingly a surrogate father-figure to 
many of the children in the public housing developments who lack a 
positive male role model. This type of program is necessary if we are 
to make these public housing developments decent and safe communities.
  Under assisted housing, this legislation consolidates the section 8 
certificate and voucher programs in order to provide needed rental 
assistance to low and moderate income families through the private 
sector rental market. I commend the committee's action, in this regard, 
because the merger of these two programs will bring administrative 
efficiency at the local level. This is particularly important in small- 
to medium-size urban areas, which I represent.

  This legislation also corrects the system on which fair market rents 
for section 8 assisted housing are established. This issue came to my 
attention in the fall of 1993 when the fiscal year 1994 fair market 
rents were established by HUD. More than 1,200 market areas appealed 
the proposed lower rents, including my own city of Davenport. To 
address this situation, H.R. 3838 requires HUD to set fair market rents 
at no less than the 45th percentile of local market rents--the dollar 
amount below which 45 percent of the standard quality rental units in 
the locality are available for rent. In essence, the administration's 
request to use the 40th percentile is rejected. I am hopeful that this 
change will ensure an adequate supply of private rental units available 
for the section 8 rental assistance program. The cities of Davenport 
and Muscatine have been instrumental in bringing these issues to my 
attention.
  In response to concerns of homelessness, I applaud the 
administration's proposal, which interestingly, is similar to past 
Republican initiatives by Mrs. Roukema and Mr. Ridge to consolidate the 
McKinney homeless programs into one block grant. This legislation will 
allow a more comprehensive approach to the homeless issue by granting 
communities flexibility to develop programs that address their local 
homeless needs. This is important, particularly in my district, which 
is less urban than others, but nonetheless, represents a unique 
homeless problem. This ``bottom-up'' approach, proposed in the 
legislation, is the type of Government initiative necessary to ensure 
that our programs achieve an intended impact on our communities plagued 
with this problem. Furthermore, I have been assured that the 
consolidation's formula will not have an adverse impact on any 
community; every community, under the new allocation formula, will 
receive at least the amount they received under the previous allocation 
system. I am hopeful that Iowa communities will fare better under this 
block grant approach rather than the previous hit-or-miss nature of the 
categorical HUD homeless assistance programs.
  In terms of home ownership, this bill authorizes Chairman Gonzalez' 
proposed national home ownerhship trust fund at $100 million, which 
will provide downpayment assistance, and in limited circumstances, 
interest rate buydowns, for fist-time home buyers. In addition to the 
fund, the Federal Housing Administration's [FHA] maximum mortgage loan 
limits have been increased from $151,725 to $172,675 for high-cost 
areas and in all other areas, $101,575. These limits are tied to the 
GSE conforming loan limit and will change automatically as the 
conforming loan limit changes, thereby eliminating the need to debate 
every 2 years the increase in loan limits subject to FHA mortgage 
insurance. However, I would be remiss if I did not acknowledge the 
concerns of some Members who are apprehensive that FHA may be expanding 
at a faster pace than some would like, while not necessarily promoting 
home ownership among first-time home buyers, minorities, and inner-city 
residents, all of whom typically are characterized as excluded from 
the mortgage finance system, and who many argue, should be the focus of 
FHA's programs. Given the proposed National Commission on the Future of 
the FHA, I believe that a thoughtful and deliberative study on that 
agency's public policy mission, management, home ownership products, 
and financial projections, will give Congress a clear direction and 
recommendation for future debates, particularly on the issue of who FHA 
should be serving. I am confident that the Conference deliberations on 
this bill will result in setting FHA mortgage loan limits which we can 
all be comfortable and proud to support.

  I would also like to acknowledge and commend Mr. Bereuter for his 
proposed rural housing initiative to create a Farmers Home 
Administration Rural Rental Housing Loan Guarantee Program--also known 
as section 515 multifamily housing. This loan guarantee program, 
although implemented as a demonstration for fiscal years 1995 and 1996, 
will be the first step in exploring alternative methods of financing 
and development of affordable housing in rural communities. 
Furthermore, I am aware of many concerns raised by the April 21, 1994, 
Committee on Appropriations investigation report that revealed 
significant managerial and programmatic problems with the section 515 
direct loan program. Reforms have been implemented, through this 
legislation, to address the investigation report and I am amendable to 
other suggestions that will make the section 515 direct loan program 
viable, cost efficient, and less susceptible to fraud and abuse.
  Overall, Madam Chairman, the Housing and Community Development Act of 
1994 is a positive step in the right direction. I urge passage of this 
legislation.
  Mr. GONZALEZ. Madam Chairman, I yield 2\1/2\ minutes to the gentleman 
from New York [Mr. Flake].
  (Mr. FLAKE asked and was given permission to revise and extend his 
remarks.)
  Mr. FLAKE. Madam Chairman, as a member of the Banking Committee, I 
rise in support of the Housing and Community Development 
Reauthorization Act, H.R. 3838. I commend Chairman Gonzalez for his 
leadership in the crafting of this legislation which will certainly 
provide a new direction for housing and community development in this 
Nation. These new policies compliment the positive changes of reform 
which are taking place at HUD.
  I am especially pleased by our committee's bipartisan efforts which 
resulted in a provision that revises the current one-for-one 
replacement policy in public housing. We learned from congressional 
hearings last spring that this policy has become somewhat inefficient 
and has placed an undue burden on providing decent and affordable 
housing in some cities. The goal of the new provision contained in H.R. 
3838 is to resolve the vast number of vacant and uninhabitable public 
housing units. A large amount of our valuable housing resources are 
being devoted to heat and provide security for empty buildings.
  As I have witnessed too many times, half-vacant buildings attract 
drugs, crime, and inhumane living conditions, especially for children. 
Therefore, a change in policy is warranted.
  Essentially, this provision allows for a waiver of the one-for-one 
replacement rule. Currently, demolition of dilapidated and inhumane 
public housing is prohibited unless replacement housing is constructed 
on a one-for-one basis. The new provision allows PHA's to ask the 
Secretary of HUD to allow them to rebuild housing on less than a one-
for-one basis. Of course, safety clauses are included and certain 
conditions must exist before the exception is allowed. This provision 
will allow local housing authorities, officials, and residents the 
necessary flexibility to determine how much and what type of public 
housing best suits their needs.
  This provision will work in synch with the inclusion of the 
administration's proposal to permit the use of modernization funds for 
replacement housing if it proves to be more cost effective and reduce 
the density on site.
  Waste, mismanagement, and distress in public housing is very 
disturbing to us all. In a time when we are cutting Federal programs 
and asking each citizen to tighten their fiscal belt, we cannot allow 
inefficiency in Government spending, especially in programs where many 
deserving people wait for assistance.
  I urge my colleagues to support passage of this important 
legislation--it is a step in the right direction.
  Madam Chairman, I think all of us are concerned about the deplorable 
conditions that exist in many of our public housing units. I would urge 
all of our colleagues to give their full support to this legislation. 
It moves us in a direction that I think all of us would want in terms 
of providing decent and affordable housing. Hopefully the day will come 
when we will see all of our citizens, not any of them living in 
homelessness, but everybody housed. This is the American dream.
  Mr. GONZALEZ. Madam Chairman, I yield 2 minutes to the gentleman from 
Wisconsin [Mr. Barrett].
  (Mr. BARRETT of Wisconsin asked and was given permission to revise 
and extend his remarks.)
  Mr. BARRETT of Wisconsin. Madam Chairman, first I want to 
congratulate the chairman of the committee for doing an excellent job 
on this bill. I think he put together an excellent bill. I also want to 
thank the gentlewoman from New Jersey [Mrs. Roukema] for all of her 
help on the amendment that I tried to put in dealing with public 
housing conditions.
  I rise today and want to thank Chairman Gonzalez for including 
provisions that will include antipiracy provisions to this bill as part 
of the manager's amendment. It will prevent the use of CDBG funds from 
being used for activity that is intended or likely to facilitate the 
relocation of jobs from one area to another.
  I asked the chairman to include this amendment in his amendment 
because of a situation that is occurring in my home community of 
Milwaukee where recently we had a major employer announce that it would 
be moving 2,000 jobs to a southern part of the United States. That is 
obviously a slap in the face to the workers of this company who have 
worked there for many, many years.
  But they got a second slap in the face about 3 weeks or 4 weeks later 
when it was learned that some of the Community Development Block Grant 
funds were going to be used in the new community to help facilitate 
this move. That is adding salt to the wound, in my opinion, by telling 
the workers that they will not only be losing their jobs, but they will 
be helping to subsidize the move of those jobs to another community 
through their own tax dollars. That is something that should not happen 
in Wisconsin, it should not happen in Nebraska, it should not happen in 
California, it should not happen in any State in this country. I am 
pleased that the chairman has included in his amendment language that 
will prevent that from happening.
  Mr. BEREUTER. Mr. Chairman, will the gentleman yield briefly?
  Mr. BARRETT of Wisconsin. I yield to the gentleman from Nebraska.
  Mr. BEREUTER. Madam Chairman, I want to thank the gentleman for his 
initiative. This is a problem existing in many areas, and I think it is 
an excellent initiative. I am pleased to support it and happy to defend 
it in conference with the gentleman.
  Mr. BARRETT of Wisconsin. I thank the gentleman very much.

                              {time}  1840

  Mrs. ROUKEMA. Madam Chairman, I yield 3 minutes to the gentleman from 
Michigan [Mr. Knollenberg], a member of the committee.
  Mr. KNOLLENBERG. Madam Chairman, I rise today in support of H.R. 
3838, the Housing and Community Development Act of 1994.
  I want to start out by saying that, while far from perfect, this bill 
contains a host of solid, reform-minded policy provisions.
  I am especially pleased that the distinguished ranking member of the 
Housing Subcommittee, Mrs. Roukema, and I were able to include a 
comprehensive rent reform package that finally removes the 
disincentives that keep public housing residents from obtaining gainful 
employment.
  I also want to thank Congressman Richard Baker of Louisiana, who 
along with Mrs. Roukema and I worked to get a waiver for the so-called 
one-for-one replacement rule.
  I believe this provision will finally give housing authorities some 
flexibility in disposing of the vacant, crime-ridden buildings that 
have become a symbol of America's failed public housing policies.
  Finally, I want to thank Chairman Gonzalez for including the minority 
in every step of the process. H.R. 3838 is a good first step in 
reforming our various housing and community development programs and I 
urge its passage.
  Having said that, I feel obligated to share my concerns about the 
problems that still exist at HUD.
  The General Accounting Office has determined that the entire 
department is at risk of waste and fraud.
  Reports by HUD's Inspector General also blast the agency's practices, 
and I quote:

       HUD lacks certain good management practices, business area 
     planning, resource management tools, and performance 
     measurement systems.
       HUD currently has many separate, poorly integrated, and 
     generally unreliable data systems.
       HUD does not have sufficient staff to carry out its 
     operations nor does it have a plan for either acquiring 
     additional competent staff or restructuring operations based 
     on the resources it has.

  Finally:

       Multifamily housing project owners and management agents 
     continue to misuse or divert project assets, adversely 
     impacting both HUD and low- and moderate-income persons 
     through increased defaults and project deterioration.

  Not to mention the impact on the American taxpayer's wallet.
  At some point, we will have to address these and other problems by 
reassessing HUD's basic functions.
  Again Madam Chairman, I ask my colleagues to join me in supporting 
this bill, but in doing so, realize that this is the beginning of a 
long journey.
  I thank the Chair.
  Mr. GONZALEZ. Madam Chairman, I yield such time as she may consume to 
the distinguished gentlewoman from Oregon [Ms. Furse].
  Ms. FURSE. Madam Chairman, I would like to enter into a colloquy with 
the distinguished chairman of the committee.
  Mr. Chairman, I would like to get your clarification on one point on 
this bill. Section 159 of H.R. 3838 discusses residual receipts in 
section 8 contracts. I would just like to clarify that section 159 in 
no way negates, obviates, or impinges upon an earlier section of the 
bill, section 144, and does not interfere with ability for HUD to carry 
out the provisions of section 144.
  Mr. GONZALEZ. Madam Chairman, will the gentlewoman yield?
  Ms. FURSE. I yield to the gentleman from Texas.
  Mr. GONZALEZ. Madam Chairman, the interpretation of the gentlewoman 
is correct, it does not. I would tell the gentlewoman from Oregon that 
the committee looks forward to HUD carrying out the very innovative 
model program that you authored and is the referred to section 144 that 
you want to make sure is not interfered with, and I can assure the 
gentlewoman that that is not the case.
  Ms. FURSE. I thank the chairman for that clarification. I also would 
like to thank him for his assistance and for the wonderful work of the 
ranking member, the gentlewoman from New Jersey [Mrs. Roukema], and for 
the very able staff of the committee.
  Mr. GONZALEZ. Madam Chairman, I yield 1 minute to the gentleman from 
Massachusetts [Mr. Kennedy].
  Mr. KENNEDY. Madam Chairman, I want to thank the chairman, the 
gentleman from Texas [Mr. Gonzalez], and the ranking member, the 
gentlewoman from New Jersey [Mrs. Roukema], for the tremendous work you 
have done on this bill. I also want to congratulate the gentleman from 
Minnesota [Mr. Vento] on the fine work he has done on trying to deal 
with the tremendous confusion that has taken place over many of the 
homeless programs that our country runs.
  I also feel that this bill is a bill that finally I hope the whole 
Congress will support, because it ensures a role for the community 
action agencies. It supports the youth program. It expands the lead 
abatement program that will allow cities to use their Federal funds 
more effectively to clean up the lead base that has caused so many 
problems in our schools and in our homes and to the most vulnerable of 
our society.
  Madam Chairman, finally, I want to thank the gentlewoman from Ohio 
[Ms. Pryce] for working so effectively to insure with me that hundreds 
of thousands of expiring section 8 affordable housing units will be 
preserved. I thank the chairman, and I congratulate you and the 
gentlewoman from New Jersey [Mrs. Roukema] for the fine work that you 
have done on this bill.
  Mrs. ROUKEMA. Madam Chairman, I yield 2 minutes to the gentlewoman 
from Ohio [Ms. Pryce], a distinguished member of our committee.
  Ms. PRYCE of Ohio. Madam Chairman, I rise in support of H.R. 3838, 
the Housing and Community Development Act of 1994. During the committee 
process Republican members were able to work with the leadership, HUD, 
and various associations to draft this bipartisan legislation. This 
bill has several minority provisions to redirect housing and community 
development programs. In addition, this legislation is reasonable and 
fiscally responsible.
  In the past few weeks I have had the opportunity to work with Mr. 
Kennedy on an amendment regarding section 8 contract renewals. The 
major point to be made is that section 8 contracts beginning in fiscal 
year 1995 will expire with increasing frequency through the end of the 
decade. HUD estimates that contracts covering over half the housing 
units will expire over the next 5 years.

  These section 8 properties represent thousands of units that 
successfully house low and moderate income families and elderly 
tenants. This means that several thousand people who are living in 
these units could be forced to move. It is my opinion that it is 
absolutely essential that we act now to provide clarity and structure 
to this process. This is a very complicated subject, but it is 
important to point out that a diverse constituency of housing groups 
representing owners of section 8 properties and resident advocates 
along with officials at HUD have worked to craft the compromise that my 
colleague Mr. Kennedy and I offer as part of this legislation. 
Significant changes have been made since the committee markup of this 
legislation. I believe that the specific issues that concerned me 
during the markup have been improved such as giving the Secretary of 
HUD the option to increase rents up to comparable unassisted levels, 
language to protect the contract and economic rights of owners, and the 
definition of what is meant by the ``remaining useful life'' of the 
property.
  It is my opinion that the overriding goal of the section 8 program is 
to make it operate as much like the conventional rental market as 
possible, while maintaining the essential purposes of the program. The 
section 8 program was designed for the purpose of aiding low-income 
families in obtaining a decent place to live and of promoting 
economically mixed housing. The section 8 program is a true partnership 
between government and local communities.
  I support this provision in H.R. 3838 and encourage the continuation 
of further revisions during the conference. Madam Chairman, this 
proposal is not a perfect solution, it has involved compromise on the 
part of all parties. I myself have a number of ongoing concerns, for 
instance I believe that in order to attract more owners to the section 
8 program, we must raise the 110 percent fair market rent limit.
  But, it is my hope that we can continue to work to resolve the minor 
differences during the conference. In the end, this legislation will 
offer low-income housing to those who are most in need.
  In closing, Madam Chairman, it has been a pleasure to work with the 
gentleman from Massachusetts, and I appreciate the assistance of HUD 
and others who had input into this important legislation. I urge my 
colleagues to support H.R. 3838.
  Mr. GONZALEZ. Madam Chairman, I yield 2 minutes to the distinguished 
gentlewoman from California [Ms. Roybal-Allard].
  Ms. ROYBAL-ALLARD. Madam Chairman, I rise in strong support of H.R. 
3838, the Housing and Community Development Act of 1994. Chairman, 
Gonzalez and the ranking minority member, Representative Roukema, are 
particularly deserving of recognition for their outstanding leadership 
in crafting a bill that meets the broad spectrum of our Nation's 
housing and community development needs.
  This important legislation strengthens the new structure and 
direction of HUD, under the able leadership of Secretary Cisneros. For 
example, the bill provides the funding for important programs 
streamlined to improve services and reduce costs, such as the 
consolidation of the McKinney Homeless programs and the merger of the 
section 8 voucher and certificate programs.
  The bill also includes funding for the National Homeownership Trust 
and FHA's mortgage insurance programs that will make housing more 
affordable to the middle-class and first-time homebuyers. In addition, 
funding for homeless assistance programs was substantially increased, 
to help remedy the homeless crisis in America.
  Funding for the Community Partnerships Against Crime Program will 
help address the growing crime problem in public housing, and the rent 
reform provisions will allow public housing residents to obtain 
employment without increasing their rent, thereby encouraging work over 
welfare and promoting self-sufficiency.
  Finally, I would like to thank the chairman and the full committee 
for allowing me to amend H.R. 3838 to establish a financial literacy 
counseling and English language instruction program to better prepare 
public housing residents for financial independence and future 
homeownership, and to improve their ability to qualify for meaningful 
employment opportunities.
  These are just a few of the key provisions which make it critical to 
pass H.R. 3838, the Housing and Community Development Act of 1994, and 
I urge my colleagues to vote ``yes'' on final passage.

                              {time}  1850

  Mrs. ROUKEMA. Madam Chairman, I yield 3 minutes to the gentleman from 
New York [Mr. Lazio], a member of the committee.
  Mr. LAZIO. I thank the gentlewoman for yielding this time to me.
  Madam Chairman, I rise today in support of H.R. 3838 and also extend 
my gratitude to the ranking minority member, the gentlewoman from New 
Jersey [Mrs. Roukema], as well as the chairman, the gentleman from 
Texas [Mr. Gonzalez], for their hard work on this bill.
  This bill incorporates several public initiatives, such as rent 
reform and 1-for-1 replacement reform. H.R. 3838 stands in contrast to 
the Clinton administration's bill, H.R. 4310, which included poorly 
conceived new programs and reflected a lack of attention to successful 
current programs.
  For example, the President's bill would have gutted the section 202 
program. Section 202 is a successful program which provides housing for 
the elderly. It certainly makes no sense to wreck a program that not 
only works well but ensures that seniors are provided with decent and 
affordable housing. The Housing Subcommittee, under the leadership of 
our chairman and ranking member, reversed this error and restored 
funding for the 202 program.
  In addition to the other initiatives I mentioned, H.R. 3838 contains 
three of my amendments, which I would like to discuss briefly.
  The Federal housing programs are supposed to provide affordable and 
safe housing for the needy. However, Secretary Cisneros testified that 
crime rates in public housing are 3 times the national average.
  My first amendment, which was adopted by the subcommittee, was a bill 
I introduced in the House. It provides for section 8 assistance to 
citizens who help local police arrest or convict criminals who live in 
public housing. My initiative, coupled with the proposal to allow local 
housing authorities to use criminal records in screening applicants and 
evicting troublesome residents, will help curb the crime problem that 
plagues public housing. It is time to take action.
  My second amendment addresses the problem of the bureaucracy at HUD. 
Despite the rhetoric of reinventing Government, HUD is attempting to 
take on new initiatives for which it is ill-equipped to handle. It is 
in this spirit that I offered, and the subcommittee adopted, an 
amendment to begin streamlining HUD. My amendment simply requires HUD 
to submit legislation repealing programs which are authorized but do 
not receive an appropriation for 3 consecutive years. I hope this will 
provide Congress with the motivation to act and streamline the 
intricate maze that is HUD.
  My final amendment instructs HUD to study housing quality standards 
in section 8. Housing quality standards are supposed to ensure minimum 
housing health and safety standards, but I fear they are not being used 
in an objective manner. In a town in my district, for example, I have 
heard instances where local social services agencies place section 8 
residents in housing that does not meet local standards.
  Madam Chairman, I want to conclude by thanking the Housing 
Subcommittee staff on both the majority and minority side for their 
work. I especially want to recognize the fine work of Joe Ventrone, who 
has helped me with my amendments, and the ranking minority member, Mrs. 
Roukema.
  Mr. GONZALEZ. Madam Chairman, I yield 2 minutes to the gentleman from 
Illinois [Mr. Durbin], chairman of a subcommittee of the Committee on 
Appropriations, who has been most helpful and supportive in the 
appropriating process of this subcommittee.
  Mr. DURBIN. I thank the gentleman for yielding.
  Madam Chairman, I want to salute the chairman as well as the ranking 
minority member, the gentlewoman from New Jersey [Mrs. Roukema] for 
their hard work on this bill. Included in this bill are several 
programs administered by the Farmers Home Administration. One of them 
is in the section 515 program, which is a program on multifamily 
housing projects in rural areas, which has been on the books for many 
years. As a result of the investigation by our subcommittee, we made 
several recommendations to the Banking Committee for changes in this 
program. I would like to salute them for those reforms which they have 
adopted. I think they will tend to make the program more cost efficient 
in the future and still serve the very valuable purpose of providing 
housing for low-income housing individuals in rural areas, particularly 
senior citizens.
  I also thank both sides for accepting an amendment which I have 
offered to this bill, which will be included in the en bloc amendment, 
which would eliminate the point system for designating areas for 515 
housing. Unfortunately, our investigation has suggested that this point 
system is easily manipulated. Instead, we are going to ask the Farmers 
Home Administration to concentrate on the level of poverty, substandard 
housing, lack of mortgage credit, lack of affordable housing, and other 
criteria to select areas where housing is most needed. I hope this 
amendment results in increased competition among developers and may 
result in lower cost per unit to the Federal Government.
  Let me conclude by saying that although the Committee on Banking, 
Finance and Urban Affairs has addressed the major part of this program, 
we are aware of the fact that there is concurrent jurisdiction in the 
Committee on Ways and Means for some tax credits and tax benefits 
available to developers under this program.
  I sincerely hope, as part of this review of the section 515 program 
and others we can engage our friends in the Committee on Ways and Means 
to look very closely to make sure that we provide only the necessary 
incentives for this housing to be built and make certain we do not 
overdo it at the expense of taxpayers.
  I reiterate what the committee report says, this is a very valuable 
program. I am sure we will review it again in the future, and I hope 
these reforms will result in even better service for the taxpayers of 
this country. And I thank the chairman again.
  Mrs. ROUKEMA. Madam Chairman, I yield 1\1/2\ minutes to the gentleman 
from Florida [Mr. Diaz-Balart].
  Mr. DIAZ-BALART. I thank the gentlewoman for yielding this time to 
me.
  I want to thank the distinguished chairman of the full committee as 
well as the subcommittee, Mr. Gonzalez, as well as the distinguished 
ranking member, the gentlewoman from New Jersey [Mrs. Roukema] and the 
gentleman from Iowa [Mr. Leach] for all their hard work, along with the 
rest of the members of the committee, on this very important bill. I am 
very encouraged that the Banking Committee included many of the reforms 
contained in H.R. 4218, a bill that I sponsored that was the result of 
months of hard work of the housing task force of the Hispanic Caucus. 
The caucus, by the way, included much hard work by the gentlewoman from 
California, Congresswoman Roybal-Allard, among others. These reforms 
include modification of rent calculations for public housing, the 
merger of section 8 rental assistance programs, and the modification of 
the restrictive section 18 1-for-1 replacement of public housing 
policy.
  I believe that we are clearly moving in the right direction by 
allowing more flexibility for public housing authorities to deal with 
obsolete buildings. Modification of 1-for-1 will also help the public 
housing authorities to use their dollars more efficiently to meet the 
needs of their particular constituencies.
  Again I offer my congratulations on this breakthrough in public 
housing requirements and commend the fine work of the Banking Committee 
on this legislation.
  Mr. GONZALEZ. I yield 1 minute to the gentleman from North Carolina 
[Mr. Watt].
  Mr. WATT. Madam Chairman, there are some of us who are still 
idealistic enough to believe and aspire to a day when we will not need 
public housing or housing subsidies or programs for the homeless. But 
until that day, we must continue to reauthorize these programs. Our 
committee has done an outstanding job of crafting a bill which has 
strong bipartisan support. This is a good bill. I want to commend the 
chairman on his leadership and the leader of the minority, the 
gentlewoman from New Jersey [Mrs. Roukema] for her leadership in 
crafting this bill. I want to commend this bill to our colleagues for 
their support.
  Mrs. ROUKEMA. Madam Chairman, I yield 1\1/2\ minutes to the 
distinguished gentleman from New York [Mr. Gilman].
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Madam Chairman, I thank the gentlewoman for yielding this 
time to me.
  Madam Chairman, I rise today in support of H.R. 3838, the Housing and 
Community Development Act of 1994, and commend the distinguished 
chairman, Mr. Gonzalez, ranking member Leach as well as Congresswoman 
Roukema the ranking member of the Housing Subcommittee for all of their 
hard work on this important bill. This measure which focuses on the 
reorganization of existing housing programs, and more importantly 
grants needed flexibility to our local housing authorities and 
municipalities, is an important step in providing clean, safe, and 
affordable housing for all.
  In addition, Madam Chairman, to the many important programs 
authorized in H.R. 3838; I am pleased to note that under title I, 
section 103(A), the committee has included language which will exclude 
Rockland County, NY from the New York City metropolitan area for 
purposes of determining the median income level of low-income families. 
This language drawn from legislation I introduced earlier in the 103d 
Congress, H.R. 2423, will allow residents in Rockland County to benefit 
from important low-income housing and first-time homebuyer programs.
  Since HUD's income levels are used in calculating eligibility for 
almost all State and Federal Housing Programs, inaccurate statistics 
severely limit access to many programs that could be beneficial to 
Rockland residents. Income caps for the State of New York mortgage 
agency, Fannie Mae/Freddie Mac, section 8, and a myriad of other 
beneficial programs are artificially low, and most of Rockland's 
residents, financial institutions, sellers and home builders are at a 
severe disadvantage compared to their counterparts in neighboring 
counties, whose statistics accurately reflect their population.
  In fact, Westchester County, NY was successful in removing their 
median income from the PMSA, thus increasing their resident's 
participation in Government programs. This change was accomplished 
through an amendment in the National Affordable Housing Act of 1990.
  Accordingly, Madam Chairman I strongly support the committee's bill 
and urge my colleagues to vote in favor of H.R. 3838.

                              {time}  1900

  Mr. GONZALEZ. Madam Chairman, I yield 1 minute to the gentlewoman 
from North Carolina [Mrs. Clayton].
  (Mrs. CLAYTON asked and was given permission to revise and extend her 
remarks.)
  Mrs. CLAYTON. Madam Chairman, I wish to express my support for H.R. 
3838 and the good work put into this legislation by Chairman Gonzalez 
and members of the Committee on Banking, Finance, and Urban Affairs. 
This bill has been reviewed and debated by many housing groups and 
incorporates a variety of concerns--hopefully in the best possible 
form.
  Earlier this session I introduced legislation to reform the Farmers 
Home Administration's 515 housing and to address several identified 
problems. I wish to acknowledge that H.R. 3838 speaks to most of those 
concerns.
  The district which I represent is a very rural--very poor--district. 
Based on this fact, I have a special interest in the issue of Farmers 
Home Administration's targeted housing funds to underserved areas.
  Currently the Farmers Home Administration must identify underserved 
areas--and this has been a successful operation. There are specific 
guidelines used in the selection of the geographical areas to receive 
funding under the targeted programs--based on the poverty level and the 
percentage of substandard housing. However, I believe that we must be 
mindful that while the geographical areas are being served, there may 
be groups of underserved applicants in these targeted counties who have 
received substantially less housing assistance than other applicants.
  I hope the chairman will work with me and others in encouraging the 
Secretary to ensure that within those targeted areas, the needs of the 
poorest of the people are met. An entire county may be selected--a 
county with rich and poor people alike--I want to make certain that the 
funds are allocated to the poor people for which this program is 
intended. I believe this type of consideration will be a compliment to 
our President's Executive order which mandates that Federal agencies 
establish programs to affirmatively promote fair housing.
  I am pleased to support this bill--very good changes have been made 
to support rural housing programs. I thank the chairman for his 
continued efforts.
  The CHAIRMAN. The gentlewoman from New Jersey [Mrs. Roukema] has 30 
seconds remaining in general debate.
  Mrs. ROUKEMA. Madam Chairman, I yield myself the balance of my time.
  Madam Chairman, I just want to say to the gentleman from Texas, 
``Thank you, Chairman Gonzalez. I think we made more than a small step 
in the right direction. There are changes and reforms here, along with 
innovations, and I think they will serve the people of all the country 
well, and I thank you for your cooperation.''
  Mr. GONZALEZ. Madam Chairman, will the gentlewoman yield?
  Mrs. ROUKEMA. I yield to the gentleman from Texas.
  Mr. GONZALEZ. Madam Chairman, let me reply by saying that I am most 
grateful and indebted to the gentlewoman from New Jersey [Mrs. Roukema] 
as I have been all through our partnership working on housing for 
several years, for making this a very, very happy and productive 
session.
  Mrs. ROUKEMA. In addition, our colleagues on the committee have been 
most helpful. Everyone has worked in a constructive way.
  Mr. GONZALEZ. I agree with the gentlewoman.
  Mrs. UNSOELD. Mr. Speaker, the Housing and Community Development 
authorization bill breaks new ground in many areas. It stands as an 
example of what is possible when both the executive and legislative 
branches work together to adopt commonsense remedies to serve the 
common good. I give it a hearty ``yes.''
  I want to focus however on one facet of this significant piece of 
legislation because I believe it has been criticized unfairly. H.R. 
3838 calls for raising the FHA loan limit from its current $67,500. The 
change is long overdue and will allow middle-class Americans to again 
use FHA financing on home purchases. With recent reports that new home 
construction is dipping in most parts of the country, action in this 
area is well-timed.
  By raising the loan limit to $101,575--and higher in areas where 
housing costs are above the national average--many middle-class 
families who have been denied their chance at home ownership will now 
get their shot at a key piece of the American dream. The higher limits 
will help not only these new home buyers, it will help all of us by 
fueling new home purchases and strengthening the economy.
  Those who assert that the higher limit will direct limited FHA 
financing away from lower-income home buyers miss a key point; the 
FHA's reserves will be bolstered by the higher limits. Those higher 
reserves will in turn help provide financing for others, including the 
poor. Raising the limit is a winner for both lower and middle-income 
home buyers, it's a winner for the construction and real estate 
industries, and it's a winner for the American economy.
  I encourage my colleagues to join me in supporting higher FHA loan 
limits. With these higher limits, new homes will bring new dreams for a 
new generation of American families.
  Ms. SHEPHERD. Madam Chairman, I rise today to thank Chairman Gonzalez 
for his dedication and hard work which have produced this valuable 
legislation before us today. I had originally planned to offer a 
noncontroversial technical correction, accepted by both the majority 
and minority, to this bill but Chairman Gonzalez has graciously agreed 
to include it as part of the chairman's substitute.
  My amendment is designed to correct a flaw in the 1990 Housing and 
Community Development Act, which is discriminating against cites 
previously determined to be municipalities eligible for community 
development block grant [CDBG] funding.
  Under the 1990 Housing and Community Development Act, if metropolitan 
cities and urban counties meet their statutory requirements for at last 
2 years, they are entitled to permanently retain their CDBG status. 
Urban county CDBG grants are awarded on a 3-year basis, however. As a 
result, a county which qualifies for funding once becomes permanently 
eligible. On the other hand, metropolitan cities which qualify once do 
not receive this same treatment. Metropolitan cities--which receive 
CDBG funding on an annual basis--must apply twice to be permanently 
eligible. In my district the city of West Jordan, UT, however, 
qualified for and received CDBG funding 1 year but was disqualified the 
next, without any prior notice, because of inaccurate population 
projections. One of the fastest growing cities in the Nation, this 
wreaked havoc with West Jordan's financial planning, robbing it of its 
ability to accurately plan for its economic development. A comparable 
city in California was almost placed in the same predicament. Other 
cities were at risk.
  Under my amendment, municipalities will be treated the same as urban 
counties with regard to permanent eligibility for CDBG. This amendment 
will not result in a decrease of CDBG funding to any city, 
municipality, urban county, or State. It simply requires fair and 
honest treatment for cities.
  Again, I thank the chairman for his generosity and urge adoption of 
the chairman's substitute.
  Mr. ORTON. Madam Chairman, I understand my amendment will be included 
in the Chairman's in-bloc amendment.
  I believe this is a noncontroversial amendment which deals with down 
payment calculations for mortgages under the FHA single family loan 
program. Under current law, borrowers and real estate professionals 
face a complex and confusing method of calculating the maximum loan 
amount which may be financed, and the down payment required.
  My amendment provides for a simplification of this down payment 
calculation. It is done in a manner intended to mirror the general 
levels of down payment required under current law. Some homeowners may 
incur slight increases in down payment requirements, some slight 
decreases. However, the overall effect should generally be neutral with 
respect to down payment levels.
  In fact, I have received a letter from HUD indicating their support 
for this proposal. HUD's analysis is that there would be ``no 
significant impact'' on the health of the FHA single family loan fund.
  Briefly, my amendment would permit a simple loan-to-value calculation 
for maximum loan limits, as follows: For properties up to $50,000, 
98.75 percent of the appraised value may be financed. For properties in 
the range of $50,000 to $125,000, the limit is 97.65 percent. And, for 
properties over $125,000, the limit would be 97.15 percent. Finally, 
for what we define as ``high closing cost States,'' the maximum loan 
amount could be 97.75 percent. This provision is necessary to more 
closely mirror current law, in which a higher loan amount can generally 
be financed in high closing cost transactions.
  The result is a clear simplification of the down payment calculation. 
It will make obtaining and processing an FHA home loan much easier. 
This means more home ownership.
  Therefore, I urge adoption of my amendment.
  Mrs. MALONEY. Thank you Madam Chairman.
  There are few bills that this House will consider this year that are 
as important as the reauthorization of the fundamental housing and 
community development programs of the Federal Government.
  I think sometimes that we lose sight of just how important these 
housing programs are to literally hundreds of thousands of families who 
look to HUD to make housing available and affordable.
  In New York City, for example, more than 200,000 people--that's 
right, 200,000--are on the waiting list to get into public housing.
  That is how difficult it is for working families to find affordable 
housing in that city.
  So I deeply appreciate all of the work, done on a bipartisan basis, 
to see that the HUD budget continues to fund so many important 
programs, like public housing, like senior citizen housing.
  It is my sincere hope that we will begin an expansion of these 
programs in the coming months to provide even more affordable housing 
so that New York City won't have to have a waiting list of nearly a 
quarter-million people.
  In the midst of these large programs, addressing the massive housing 
needs of this country, I would like to briefly touch on two more modest 
programs that I included in H.R. 3838.
  In late May, the Urban Institute issued a comprehensive study on 
cooperative housing.
  The basic conclusion of the report is that co-op housing is one of 
the best and safest ways for HUD to promote home ownership among low- 
and moderate-income people.
  H.R. 3838 will require HUD to study this important report and its 
conclusions, and report back to Congress its recommendations on how HUD 
can increase cooperative housing for low- and moderate-income people.
  Some housing experts estimate that 100,000 people can become 
homeowners if all of the recommendations of the study are implemented.
  As the proud representative of many happy co-op homeowners, I very 
much look forward to HUD's action plan.
  H.R. 3838 will also allow community groups, under existing community 
development programs, to take vacant municipal lots and turn them into 
urban greenspaces like parks, gardens, and ballfields.
  The contents of this program are based upon legislation, H.R. 4143, 
that I introduced this past spring. Currently, these vacant lots are 
either havens for human refuse like drug dealers or collection points 
for vast quantities of other, nonhuman garbage.
  There are a number of examples in New York City, like the Success 
Gardens in East Harlem, where the refurbishment of such lots has 
provided positive outlets for community youth, increased property 
values, and made other types of investment in the communities more 
attractive.
  I hope that by making this an eligible activity under existing 
programs, that success can be duplicated in cities across America.
  For both the big programs, and the small, I strongly urge my 
colleagues to vote yes on this bill.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill shall be considered by titles as an 
original bill for the purpose of amendment and each title is considered 
as read.
  The Clerk will designate section 1.
  The text of section 1 is as follows:

     H.R. 3838

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Housing 
     and Community Development Act of 1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Effective date.

                      TITLE I--HOUSING ASSISTANCE

                     Subtitle A--General Provisions

Sec. 101. Low-income housing authorization.
Sec. 102. Resident representation in public housing agencies.
Sec. 103. Determination of median income.
Sec. 104. Definition of families.
Sec. 105. Family self-sufficiency program.
Sec. 106. Use of amounts in headquarters reserve.

                 Subtitle B--Public and Indian Housing

Sec. 111. Public housing rent reform.
Sec. 112. Sale of public housing to non-profit intermediaries.
Sec. 113. Major reconstruction of obsolete projects.
Sec. 114. New construction of projects for disabled families.
Sec. 115. Recapture of public housing development amounts.
Sec. 116. Repeal of least-cost limitation on public housing new 
              construction.
Sec. 117. Regulatory relief and paperwork reduction for high-performing 
              public housing agencies.
Sec. 118. Standards for lease termination and expedited grievance 
              procedure.
Sec. 119. Availability of criminal conviction information for screening 
              and evictions.
Sec. 120. Designated housing.
Sec. 121. Public housing operating subsidies.
Sec. 122. Eligible uses of emergency modernization funds.
Sec. 123. Use of modernization funds for replacement housing.
Sec. 124. Demolition and disposition of public housing.
Sec. 125. Public housing resident opportunity.
Sec. 126. Public housing family investment centers.
Sec. 127. Revitalization of severely distressed public housing.
Sec. 128. Program monitoring and technical assistance.
Sec. 129. Applicability of public housing amendments to Indian housing.
Sec. 130. Early childhood development program.
Sec. 131. Indian housing childhood development services.
Sec. 132. Public housing one-stop perinatal services demonstration.
Sec. 133. Sale of certain scattered site public housing.
Sec. 134. Eligibility of certain public housing for demolition.
Sec. 135. Demonstration program for innovative public housing agencies 
              and resident management corporations.
Sec. 136. Demonstration program for occupancy of otherwise vacant 
              public housing units by moderate-income families.
Sec. 137. Study of adequacy of payment in lieu of taxes.

                    Subtitle C--Section 8 Assistance

Sec. 141. Community investment demonstration program.
Sec. 142. Merger of section 8 rental assistance programs.
Sec. 143. Incentives to refinance high interest mortgages for section 8 
              projects.
Sec. 144. Demonstration program for use of excess residual receipts.
Sec. 145. Treatment of certain projects.
Sec. 146. Study of extent of nonparticipation of owners and landlords 
              in section 8 rental assistance program.
Sec. 147. Study of section 8 housing quality standards.

      Subtitle D--Renewal of Expiring Contracts for Section 8 New 
          Construction and Substantial Rehabilitation Projects

Sec. 151. Findings and purpose.
Sec. 152. Notices of contract expiration and intention to renew.
Sec. 153. Secretary's response to owner's proposal.
Sec. 154. Limitation on new contracts.
Sec. 155. Required terms of new contracts.
Sec. 156. Maximum monthly rent under new contracts.
Sec. 157. Actions in cases of failure to enter into new contract.
Sec. 158. Contract extension.
Sec. 159. Financing and restructuring underlying debt and treatment of 
              residual receipts.
Sec. 160. Retention of program savings by Secretary.
Sec. 161. Supportive services.
Sec. 162. Delegation of authority.
Sec. 163. Definitions.
Sec. 164. Regulations.
Sec. 165. Authorization of appropriations.

                   Subtitle E--Homeownership Programs

Sec. 171. HOPE homeownership programs.
Sec. 172. National Homeownership Fund.
Sec. 173. Section 235 mortgage refinancing.
Sec. 174. Housing counseling for homeownership and rental housing 
              choice.

                       Subtitle F--Other Programs

Sec. 181. Community partnerships against crime.
Sec. 182. Low-income housing preservation.
Sec. 183. Flexible subsidy program.
Sec. 184. Youthbuild program.
Sec. 185. Disposition of HUD-owned multifamily housing properties.
Sec. 186. Guidelines for screening, admission, and evictions in public 
              and assisted housing.
Sec. 187. Metropolitan area-wide strategy demonstration.

                 TITLE II--HOME INVESTMENT PARTNERSHIPS

Sec. 201. Authorization of appropriations.
Sec. 202. Eligible uses of investment.
Sec. 203. Qualification as affordable rental housing.
Sec. 204. Repayment of investment.
Sec. 205. Matching requirements.
Sec. 206. Support for State and local housing strategies.
Sec. 207. Labor requirements.

                 TITLE III--SUPPORTIVE HOUSING PROGRAMS

Sec. 301. Funding for supportive housing for the elderly and for 
              persons with disabilities.
Sec. 302. Supportive housing for the elderly.
Sec. 303. Supportive housing for persons with disabilities.
Sec. 304. Revised congregate services.
Sec. 305. Supportive housing assistance for elderly independence.
Sec. 306. Housing opportunities for persons with AIDS.
Sec. 307. Service coordinators.

       TITLE IV--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET

       Subtitle A--Mortgage Insurance and Loan Guarantee Programs

Sec. 401. Limitation on insurance authority.
Sec. 402. Federal Housing Administration Advisory Board.
Sec. 403. Maximum mortgage amount ceiling for single family mortgages.
Sec. 404. Maximum mortgage amount floor for single family mortgage 
              insurance.
Sec. 405. Elimination of restrictions regarding new construction.
Sec. 406. Authority to use amounts borrowed from family members for 
              downpayments.
Sec. 407. Indemnification for multifamily housing project managers.
Sec. 408. Extension of multifamily housing mortgage auction provisions.
Sec. 409. Streamlined refinancing for HUD-held mortgages.
Sec. 410. Home equity conversion mortgages for elderly homeowners.
Sec. 411. Single family risk-sharing mortgage insurance program.
Sec. 412. Delegation of single family mortgage insuring authority to 
              direct endorsement mortgagees.
Sec. 413. Eligibility of mortgages on homes on leased land owned by 
              community land trusts.
Sec. 414. Insurance of 2-step single family mortgages.
Sec. 415. Mortgage limits for multifamily projects in high-cost areas.
Sec. 416. Calculation of credit subsidy for FHA refinancings and offset 
              of negative subsidies.
Sec. 417. Approval of point-of-use purification systems and testing of 
              systems.
Sec. 418. Energy efficient mortgages pilot program.
Sec. 419. Extension of multifamily mortgage credit demonstrations.
Sec. 420. Indian housing loan guarantees.
Sec. 421. National Commission on the Future of the Federal Housing 
              Administration.
Sec. 422. Action and report on cooperative homeownership for low- and 
              moderate-income families.
Sec. 423. Study of activity of private mortgage bankers and insurers.

             Subtitle B--Secondary Mortgage Market Programs

Sec. 441. Limitation on GNMA guarantees of mortgage-backed securities.
Sec. 442. Assessment collection dates for Office of Federal Housing 
              Enterprise Oversight.

                 Subtitle C--Emergency Mortgage Relief

Sec. 461. Amendments to Emergency Homeowners' Relief Act.

    Subtitle D--Nonjudicial Foreclosure of Defaulted Single Family 
                               Mortgages

Sec. 481. Short title.
Sec. 482. Findings and purpose.
Sec. 483. Definitions.
Sec. 484. Applicability.
Sec. 485. Designation of foreclosure commissioner.
Sec. 486. Prerequisites to foreclosure.
Sec. 487. Notice of foreclosure sale.
Sec. 488. Commencement of foreclosure.
Sec. 489. Service of notice of foreclosure.
Sec. 490. Presale reinstatement.
Sec. 491. Conduct of sale and adjournment.
Sec. 492. Foreclosure costs.
Sec. 493. Disposition of sale proceeds.
Sec. 494. Transfer of title and possession.
Sec. 495. Record of foreclosure and sale.
Sec. 496. Effect of sale.
Sec. 497. Computation of time.
Sec. 498. Separability.
Sec. 499. Deficiency judgment.

                         TITLE V--RURAL HOUSING

Sec. 501. Program authorizations.
Sec. 502. Eligibility of Native Americans for rural housing programs.
Sec. 503. Escrow fund.
Sec. 504. Section 502 homeownership loans.
Sec. 505. Loan guarantees.
Sec. 506. Prepayment of rural rental housing loans.
Sec. 507. Designation of underserved areas and reservation of 
              assistance.
Sec. 508. Administrative appeals.
Sec. 509. Section 515 rural rental housing.
Sec. 510. Optional conversion of rental assistance payments to 
              operating subsidy for migrant farmworker projects.
Sec. 511. Definition of rural area.
Sec. 512. Eligibility of manufactured home parks for building site 
              loans for cooperatives.
Sec. 513. Rural housing assistance targeting report.
Sec. 514. Priority for rural housing voucher assistance.
Sec. 515. Native American rural housing capacity demonstration program.
Sec. 516. Rural community development initiative.
Sec. 517. Loan guarantees for multifamily rental housing in rural 
              areas.
Sec. 518. Rural housing loan delegated processing demonstration.

                    TITLE VI--COMMUNITY DEVELOPMENT

         Subtitle A--Community Development Block Grant Program

Sec. 601. Authorization of appropriations and guarantee authority.
Sec. 602. Management information systems.
Sec. 603. Eligible activities.
Sec. 604. Reallocations.
Sec. 605. Limitation on extent of use of loan guarantees for housing 
              purposes.
Sec. 606. Economic development grants.
Sec. 607. Use of UDAG recaptures.
Sec. 608. Extension of certain CDBG assistance.

            Subtitle B--Other Community Development Programs

Sec. 631. Neighborhood Reinvestment Corporation.
Sec. 632. John Heinz neighborhood development program.
Sec. 633. Capacity building for community development and affordable 
              housing.
Sec. 634. Colonias assistance program.
Sec. 635. Grants for empowerment zones and enterprise communities.
Sec. 636. Use of grant amounts.

            TITLE VII--REGULATORY AND MISCELLANEOUS PROGRAMS

Sec. 701. Fair housing initiatives program.
Sec. 702. HUD program monitoring and evaluation.
Sec. 703. HUD salaries and expenses.
Sec. 704. Use of technical assistance amounts by or for HUD staff.
Sec. 705. Annual report regarding repeal of unfunded programs.
Sec. 706. Requirements for participation of women in construction 
              assisted under HUD programs.
Sec. 707. Notification of HUD funding awards.
Sec. 708. Exclusion of GNMA from HUD personnel ceilings.
Sec. 709. HUD research and development.
Sec. 710. Preventing fraud and abuse in rural rental housing program.
Sec. 711. National Institute of Building Sciences.
Sec. 712. Residential lead-based paint hazard reduction.
Sec. 713. GAO study of lead-based paint detection technologies and 
              tenant notification procedures.
Sec. 714. Civil money penalties for violations of Home Mortgage 
              Disclosure Act by nonsupervised mortgagees.
Sec. 715. Removal of regulatory barriers to affordable housing.
Sec. 716. New towns demonstration program for emergency relief of Los 
              Angeles.
Sec. 717. Authorization of appropriations for public services facility.
Sec. 718. National American Indian Housing Council.
Sec. 719. Housing Assistance Council.
Sec. 720. Demonstration program for outreach to avoid disconnection of 
              utilities.
Sec. 721. Federal Deposit Insurance Corporation affordable housing 
              program.
Sec. 722. State agencies as sureties.

    TITLE VIII--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS 
                             ASSISTANCE ACT

Sec. 801. Short title.

                     Subtitle A--Housing Assistance

  Chapter 1--Reorganization of Certain McKinney Act Housing Provisions

Sec. 811. Flexible grant program.
Sec. 812. Regulations.
Sec. 813. Transition provisions.

  Chapter 2--Other Housing Assistance Programs for the Homeless Under 
                              McKinney Act

Sec. 821. Section 8 assistance for single room occupancy dwellings.
Sec. 822. Section 8 assistance for shelter plus care single room 
              occupancy dwellings.
Sec. 823. Rural homelessness grant program.
Sec. 824. Clerical amendment.

          Chapter 3--Miscellaneous Homeless Housing Provisions

Sec. 831. Innovative homeless program.
Sec. 832. FHA single family property disposition.

            Subtitle B--Interagency Council on the Homeless

Sec. 841. Authorization of appropriations.
Sec. 842. Chairperson.
Sec. 843. Extension.

   Subtitle C--Federal Emergency Management Agency Food and Shelter 
                                Program

Sec. 851. Authorization of appropriations.

  The CHAIRMAN. Are there any amendments to section 1?
  Mr. GONZALEZ. Madam Chairman, I ask unanimous consent that the 
remainder of the committee amendment in the nature of a substitute be 
printed in the Record and open to amendment at any point.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  The text of the remainder of the committee amendment in the nature of 
a substitute is as follows:

     SEC. 2. EFFECTIVE DATE.

       The provisions of this Act and the amendments made by this 
     Act shall take effect and shall apply upon the date of the 
     enactment of this Act, unless such provisions or amendments 
     specifically provide for effectiveness or applicability upon 
     another date certain.
                      TITLE I--HOUSING ASSISTANCE
                     Subtitle A--General Provisions

     SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

       (a) Aggregate Budget Authority.--Section 5(c)(6) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is 
     amended by adding at the end the following new sentence: 
     ``The aggregate amount of budget authority that may be 
     obligated for assistance referred to in paragraph (7) is 
     increased (to the extent approved in appropriation Acts) by 
     the sum of the amounts provided in paragraph (7)(A) on 
     October 1, 1994, and by the sum of the amounts provided in 
     paragraph (7)(B) on October 1, 1995.''.
       (b) Utilization of Budget Authority.--Section 5(c)(7) of 
     the United States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) 
     is amended by striking the paragraph designation and all that 
     follows through the end of subparagraph (B) and inserting the 
     following:
       ``(7)(A) Using the additional budget authority provided 
     under paragraph (6) and the balances of budget authority that 
     become available during fiscal year 1995, the Secretary 
     shall, to the extent approved in appropriation Acts, reserve 
     authority to enter into obligations aggregating--
       ``(i) for public housing grants under subsection (a)(2), 
     not more than $861,000,000, of which amount not more than 
     $263,000,000 shall be available for Indian housing;
       ``(ii) for assistance under section 8, not more than 
     $2,674,000,000, of which not more than $75,000,000 shall be 
     available for assistance under section 8 for family 
     unification under subsection (q)(3) of such section;
       ``(iii) for assistance under section 5(j)(2) for 
     substantial redesign, reconstruction, and redevelopment of 
     existing obsolete public housing projects and buildings, not 
     more than $114,000,000;
       ``(iv) for comprehensive improvement assistance grants 
     under section 14(k), not more than $3,230,000,000;
       ``(v) for assistance under section 8 for property 
     disposition, not more than $733,000,000;
       ``(vi) for assistance under section 8 for loan management, 
     not more than $150,000,000;
       ``(vii) for extensions of contracts expiring under section 
     8, $5,092,000,000 which shall be for 5-year contracts for 
     assistance under section 8 and vouchers under section 8(o) 
     (as in effect before the date of the enactment of this Act) 
     and for loan management assistance under such section;
       ``(viii) for amendments to contracts under section 8, such 
     sums as may be necessary;
       ``(ix) for public housing lease adjustments and amendments, 
     such sums as may be necessary;
       ``(x) for assistance under section 18(g) for replacement 
     housing for units demolished or disposed of under section 18, 
     not more than $333,450,000;
       ``(xi) for conversions from leased housing contracts under 
     section 23 of this Act (as in effect immediately before the 
     enactment of the Housing and Community Development Act of 
     1974) to assistance under section 8, such sums as may be 
     necessary; and
       ``(xii) for grants under section 24 for revitalization of 
     severely distressed public housing, not more than 
     $500,000,000.
       ``(B) Using the additional budget authority provided under 
     paragraph (6) and the balances of budget authority that 
     become available during fiscal year 1996, the Secretary 
     shall, to the extent approved in appropriation Acts, reserve 
     authority to enter into obligations aggregating--
       ``(i) for public housing grants under subsection (a)(2), 
     not more than $862,000,000, of which amount not more than 
     $264,000,000 shall be available for Indian housing;
       ``(ii) for assistance under section 8, not more than 
     $2,800,000,000, of which not more than $75,000,000 shall be 
     available for assistance under section 8 for family 
     unification under subsection (q)(3) of such section;
       ``(iii) for assistance under section 5(j)(2) for 
     substantial redesign, reconstruction, and redevelopment of 
     existing obsolete public housing projects and buildings, not 
     more than $120,000,000;
       ``(iv) for comprehensive improvement assistance grants 
     under section 14(k), not more than $3,241,000;
       ``(v) for assistance under section 8 for property 
     disposition, not more than $800,000,000;
       ``(vi) for assistance under section 8 for loan management, 
     not more than $155,000,000;
       ``(vii) for extensions of contracts expiring under section 
     8, $6,000,000,000 which shall be for 5-year contracts for 
     assistance under section 8 and vouchers under section 8(o) 
     (as in effect before the date of the enactment of the Housing 
     and Community Development Act of 1994) and for loan 
     management assistance under such section;
       ``(viii) for amendments to contracts under section 8, such 
     sums as may be necessary;
       ``(ix) for public housing lease adjustments and amendments, 
     such sums as may be necessary;
       ``(x) for assistance under section 18(g) for replacement 
     housing for units demolished or disposed of under section 18, 
     not more than $273,600,000;
       ``(xi) for conversions from leased housing contracts under 
     section 23 of this Act (as in effect immediately before the 
     enactment of the Housing and Community Development Act of 
     1974) to assistance under section 8, such sums as may be 
     necessary; and
       ``(xii) for grants under section 24 for revitalization of 
     severely distressed public housing, not more than 
     $550,000,000.''.

     SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUSING AGENCIES.

       (a) Representation.--Section 2 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437) is amended--
       (1) by inserting ``(a) Policy.--'' after ``Sec. 2.'';
       (2) by striking the last sentence; and
       (3) by adding at the end the following new subsection:
       ``(b) Governance of Public Housing Agencies.--
       ``(1) Prohibition.--No person may be barred from serving on 
     the board of directors or other similar governing body of a 
     local public housing agency because of his or her tenancy in 
     a low-income project.
       ``(2) Resident membership.--Each public housing agency 
     shall have a board of directors or other similar governing 
     body, of which not less than one-quarter of the members shall 
     be residents of housing units administered or assisted by the 
     agency.
       ``(3) Conflicts of interest.--The Secretary shall establish 
     guidelines to prevent conflicts of interest on the part of 
     resident members of the board or directors or governing body 
     of a public housing agency. Such guidelines shall ensure that 
     resident members are able to participate fully in policy and 
     financial matters within the control of the board or body.
       ``(4) Full participation.--No public housing agency may 
     limit or restrict the capacity or offices in which a member 
     of such board or body may serve on such board or body solely 
     because of the member's status as a resident member.
       ``(5) Definition.--For purposes of this subsection, the 
     term `resident member' means a member of the board of 
     directors or other similar governing body of a public housing 
     agency who is a resident of a housing unit administered or 
     assisted by the agency.''.
       (b) Conforming Amendment.--The first sentence of section 
     3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 
     1437a(b)(6)) is amended by inserting before the period at the 
     end the following: ``and complies with the requirements under 
     section 2(b)''.

     SEC. 103. DETERMINATION OF MEDIAN INCOME.

       (a) In General.--Section 3(b)(2) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
       (1) in the 4th sentence--
       (A) by striking ``County'' and inserting ``and Rockland 
     Counties''; and
       (B) by inserting ``each'' before ``such county''; and
       (2) in the last sentence--
       (A) by striking ``County'' the 1st place it appears and 
     inserting ``or Rockland Counties''; and
       (B) by striking ``County'' the 2d place it appears and 
     inserting ``and Rockland Counties''.
       (b) Regulations and Effective Date.--The Secretary of 
     Housing and Urban Development shall issue regulations 
     implementing the amendments made by subsection (a) not later 
     than the expiration of the 90-day period beginning on the 
     date of the enactment of this Act. The regulations may not 
     take effect until after September 30, 1993.

     SEC. 104. DEFINITION OF FAMILIES.

       The first sentence of section 3(b)(3)(B) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended 
     by inserting ``or, in the case of disabled families, other 
     household members'' after ``spouses''.

     SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.

       (a) Scope.--Section 23(b)(3) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended to read as 
     follows:
       ``(3) Scope.--Each public housing agency required to carry 
     out a local program under this section shall make assistance 
     under the program available in a fiscal year, subject only to 
     the availability of amounts for such assistance, to a number 
     of families who are assisted by the agency under section 8 or 
     reside in public housing of the agency that is equivalent to 
     the sum of--
       ``(A) the increase for such year in the number of families 
     assisted under section 8 (as compared to the preceding year); 
     and
       ``(B) the increase for such year in the number of public 
     housing dwelling units made available by the agency (as 
     compared to the preceding year).''.
       (b) Voluntary Escrow Savings Account.--Section 23(d) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437u(d)) is 
     amended--
       (1) in paragraph (2)--
       (A) in the 1st sentence, by striking ``shall'' and 
     inserting ``may'';
       (B) in the 2d sentence, by inserting after ``area median 
     income'' the following: ``that choose to escrow amounts under 
     this paragraph'';
       (C) in the 2d sentence, by striking ``shall'' and inserting 
     ``may''; and
       (D) by striking the 3d and 4th sentences and inserting the 
     following new sentence: ``Amounts in the escrow account may 
     be withdrawn by the participating family upon the successful 
     performance of the obligations of the family under the 
     contract of participation entered into by the family under 
     subsection (c), as determined according to the specific goals 
     and terms included in the contract, and under other 
     circumstances, as determined by the public housing agency 
     with the approval of the Secretary.''; and
       (2) by striking the 2d sentence of paragraph (3) and 
     inserting the following new sentence: ``The plan may require 
     the establishment of escrow savings accounts under paragraph 
     (2), a description of the procedures for release of escrowed 
     amounts, and any other incentives designed by the public 
     housing agency.''.
       (c) Service Coordinators.--Section 23 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437u) is amended--
       (1) in the last sentence of subsection (b)(1), by inserting 
     ``under section 671 of the Housing and Community Development 
     Act of 1992'' after ``service coordinator''; and
       (2) in subsection (h)--
       (A) in paragraph (2), by striking ``(including the costs of 
     employing a full-time service coordinator)''; and
       (B) by adding at the end the following new paragraph:
       ``(3) Contract adjustments for service coordinators.--If, 
     in providing rental assistance under section 8 of the United 
     States Housing Act of 1937 for a public housing agency 
     carrying out a local program under this section in any fiscal 
     year, the Secretary increases the amount provided for the 
     agency so that the number of families assisted by the agency 
     in the year is greater than the number of families assisted 
     in the preceding year, the Secretary may increase the amount 
     annually provided for the agency to provide for the costs of 
     employing or otherwise retaining the services of one or more 
     service coordinators referred to in subsection (b)(1) of this 
     section. The Secretary may also, under any existing contract 
     for assistance under section 8, include the cost of employing 
     such service coordinators to the extent that amounts for 
     amendments to such contracts are available.''.
       (d) Repeal of Incentive Award Allocation.--Section 23 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437u) is 
     amended--
       (1) by striking subsection (i); and
       (2) by redesignating subsections (j) through (o) as 
     subsections (i) through (n), respectively.
       (e) Technical Amendment.--Section 23(h)(2) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended 
     by striking the last sentence.

     SEC. 106. USE OF AMOUNTS IN HEADQUARTERS RESERVE.

       (a) Use for Fair Housing Activities.--Section 213(d)(4)(A) 
     of the Housing and Community Development Act of 1974 (42 
     U.S.C. 1439(d)(4)(A)) is amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) in clause (iv) by striking the period at the end and 
     inserting a semicolon; and
       (3) by inserting after clause (iv) the following new 
     clauses:
       ``(v) fair housing activities and cash payments, in 
     connection with the settlement of civil rights litigation 
     (excluding litigation brought by an employee or former 
     employee of the Secretary); and
       ``(vi) in the case of financial assistance under the rental 
     housing assistance program under section 8 of the United 
     States Housing Act of 1937, providing assistance pursuant to 
     section 8(q)(4) of such Act.''.
       (b) Availability of Public Housing and Section 8 Amounts.--
     Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
     1437c) is amended by adding at the end the following new 
     subsection:
       ``(m) Use of Amounts Under Headquarters Reserve.--Any 
     amounts appropriated for public housing development or 
     assistance under section 8, that are retained by the 
     Secretary in accordance with section 213(d)(4)(A) of the 
     Housing and Community Development Act of 1974, may be used 
     for any of the activities specified in clauses (i) through 
     (v) of such section.''.
       (c) Use of Section 8 Assistance for Portability and 
     Neighborhood Crime Fighters.--Section 213(d)(4) of the 
     Housing and Community Development Act of 1974 is amended by 
     adding at the end the following new subparagraphs:
       ``(C) Of any financial assistance for the rental housing 
     assistance program under section 8 of the United States 
     Housing Act of 1937 that is reserved pursuant to subparagraph 
     (A), 5 percent shall be reserved for use only for the 
     purposes of providing assistance pursuant to section 8(o)(6) 
     of such Act.
       ``(D) In addition to any financial assistance for the 
     rental housing assistance program under section 8 of the 
     United States Housing Act of 1937 that is reserved pursuant 
     to subparagraphs (A) and (C), the Secretary shall reserve not 
     more than an additional $15,000,000 of any financial 
     assistance that becomes available under such program during 
     each of fiscal years 1995 and 1996 and such additional 
     amounts may be used only for the purpose under clause (vi) of 
     subparagraph (A).''.
                 Subtitle B--Public and Indian Housing

     SEC. 111. PUBLIC HOUSING RENT REFORM.

       (a) Ceiling Rents.--Section 3(a)(2) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and approved by the 
     Secretary''; and
       (B) by striking clause (iii) and inserting the following 
     new clause:
       ``(iii) at the election of such agency, is--
       ``(I) not less than the average monthly amount of debt 
     service and operating expenses attributable to dwelling units 
     of similar size in public housing projects owned and operated 
     by such agency;
       ``(II) not less than the reasonable rental value of the 
     unit, as determined by the agency; or
       ``(III) not less than the local market rent determined by 
     the agency for comparable units of similar size pursuant to 
     the procedures prescribed by the Secretary for determining 
     rent reasonableness under the program for rental certificate 
     assistance under section 8(b).'';
       (2) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraphs:
       ``(B) Any ceiling rents established by a public housing 
     agency pursuant to this paragraph may be adjusted by the 
     agency.
       ``(C)(i) Any ceiling rents established pursuant to 
     subclause (I) or (III) of subparagraph (A)(iii) shall take 
     effect at the discretion of the public housing agency.
       ``(ii) Any ceiling rents established pursuant to subclause 
     (II) of subparagraph (A)(iii) may not take effect before the 
     issuance of regulations to carry out such subclause, which 
     shall be issued by the Secretary not later than 180 days 
     after the date of the enactment of the Housing and Community 
     Development Act of 1994.
       ``(iii) Before the effectiveness of regulations under 
     clause (ii), an agency shall determine the reasonable rental 
     value of unit for purposes of subclause (II) of subparagraph 
     (A)(iii) based upon (I) in a project of 50 or more units for 
     which such ceiling rents are being established, the 95th 
     percentile of rents paid for all units in the project, (II) 
     in a group of comparable projects for which such ceiling 
     rents are being established that consists of a total of 50 or 
     more units, all units in the projects, and (III) in a group 
     of at least 50 comparable units for which such ceiling rents 
     are being established, all units in the group.''.
       (b) Exclusions From Adjusted Income.--Section 3(b)(5) of 
     the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) 
     is amended--
       (1) in subparagraph (C)--
       (A) by striking ``and'' before ``(ii)''; and
       (B) by inserting before the semicolon at the end the 
     following; ``; and (iii) to the extent documented by the 
     family, the amount paid by the family for health insurance 
     coverage and any other nonreimbursed out-of-pocket medical 
     expenses for any members of the family residing in the 
     household who, at the time, are not receiving or approved to 
     receive any assistance for health care from the Federal 
     Government or any State government, except that this clause 
     shall apply only to families residing in public housing'';
       (2) in subparagraph (E), by inserting before the semicolon 
     at the end the following: ``, except that in the case of a 
     family residing in public housing the amount excluded under 
     this subparagraph shall be 20 percent of the earned income of 
     the family remaining after excluding any amounts pursuant to 
     subparagraph (H)'';
       (3) in subparagraph (F), by striking ``and'' at the end;
       (4) in subparagraph (G), by striking the period at the end 
     and inserting a semicolon; and
       (5) by adding at the end the following new subparagraphs:
       ``(H) in the case of a family residing in public housing, 
     any earned income of any formerly dependent child who is a 
     member of the family residing in the family's dwelling unit 
     during the period beginning on the date of the first 
     redetermination of the rent for and family composition of the 
     family that occurs after the child reaches 18 years of age 
     and ending upon the date of the first such redetermination 
     occurring after he or she reaches 21 years of age; and
       ``(I) in the case of 2-parent families with children (as 
     defined by the Secretary by regulation) who reside in public 
     housing, an amount (in addition to any amounts excluded under 
     subparagraphs (E) and (H)) not to exceed 10 percent of any 
     earned income of the family.''.
       (c) Exclusion of Earned Income of Residents Who Obtain 
     Employment From Rent Determinations.--
       (1) In general.--Section 3(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(a)) is amended--
       (A) in the third sentence of paragraph (1), by striking 
     ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''; 
     and
       (B) by adding at the end the following new paragraph:
       ``(3) Optional Exclusion of Earned Income From Rent 
     Determination for Families Previously Unemployed.--
     Notwithstanding any other provision of law, a public housing 
     agency may provide (at the option of a public housing agency) 
     that, for all units in public housing administered by the 
     agency, the rent payable under subsection (b) for any such 
     unit occupied by a family whose income increases as a result 
     of employment of a member of the family who was previously 
     unemployed for 1 or more years, may not--
       ``(A) be increased as a result of the increased income due 
     to such employment during the period that begins upon the 
     commencement of such employment and ends upon the second 
     annual redetermination of the rent for and family composition 
     of the family occurring thereafter;
       ``(B) during any 12-month period occurring during the 36 
     months succeeding the expiration of the period under 
     subparagraph (A) for the family, be increased due to the 
     continued employment of such family member by more than one-
     third of the difference between (i) the rent being paid by 
     the family upon expiration of such period, and (ii) the 
     amount of rent that the family would pay but for the 
     applicability of this paragraph; and
       ``(C) in any case, exceed the amount determined under 
     paragraph (1) or (2).'';
       (d) Exclusion From Income of Earnings From Job Training and 
     Self-Sufficiency Programs.--Section 3 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a) is amended--
       (1) in subsection (b)(4), by inserting before the period at 
     the end the following: ``, and except that the earnings of 
     and benefits to any public housing resident resulting from 
     enrollment and participation in a program providing 
     employment training and supportive services in accordance 
     with the Family Support Act of 1988, section 22 of this Act, 
     the Job Training Partnership Act, Subtitle D of title IV of 
     the Cranston-Gonzalez National Affordable Housing Act, part F 
     of title IV of the Social Security Act, or any comparable 
     Federal, State, or local law shall not be considered as 
     income for the purposes of determining a limitation on the 
     amount of rent paid by the resident during the period that 
     the resident enrolls and participates in such program''; and
       (2) 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).
       (e) Applicability.--Notwithstanding the amendments made by 
     this section, 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 added by section 515(b) of the 
     Cranston-Gonzalez National Affordable Housing Act (Public Law 
     101-625; 104 Stat. 4199)), as such paragraph existed before 
     the date of enactment of this Act, shall continue to be 
     governed by such authority.
       (f) Performance Funding System.--Section 9(a)(3)(B) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)) 
     is amended--
       (1) in clause (iv), by striking ``and'' at the end;
       (2) in (v), by striking the period at the end and inserting 
     a semicolon; and
       (3) by adding at the end the following new clause:
       ``(vi) the amount of any reduced revenue resulting from the 
     exclusion of income of public housing residents pursuant to 
     section 3(b)(5)(E) shall be calculated and included in the 
     amount of the payment received under this section by the 
     public housing agency administering the public housing in 
     which such residents reside;''.
       (g) Effective Date.--The amendments under this section 
     shall take effect on the earlier of--
       (1) date of the effectiveness of the regulations under 
     subsection (i); or
       (2) the expiration of the 120-day period beginning on the 
     date of the enactment of this Act.
       (h) Regulations.--The Secretary shall issue any final 
     regulations necessary to implement the amendments made by 
     this section, which shall take effect not later than the 
     expiration of the 120-day period beginning on the date of the 
     enactment of this Act. The regulations shall be issued after 
     notice and opportunity for public comment in accordance with 
     the procedures under section 553 of title 5, United States 
     Code, applicable to substantive rules (notwithstanding 
     subsections (a)(2), (b)(B), and (d)(3) of such section).

     SEC. 112. SALE OF PUBLIC HOUSING TO NON-PROFIT 
                   INTERMEDIARIES.

       The first sentence of section 5(h) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437c(h)) is amended by 
     striking ``its lower income tenants'' and inserting: ``low-
     income families residing in public housing or to non-profit 
     organizations for resale to low-income families residing in 
     public housing''.

     SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS.

       (a) Assistance for Reconstruction.--Section 5(j)(2) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)) is 
     amended--
       (1) in subparagraph (A), by striking ``Notwithstanding'' 
     and all that follows through ``fiscal year'' and inserting 
     the following: ``The Secretary may provide assistance under 
     this paragraph'';
       (2) in subparagraph (C), by striking ``reserved'' and 
     inserting ``made available for assistance'';
       (3) in subparagraph (F)(i), by striking ``reserved or''; 
     and
       (4) in subparagraph (G)(i), by striking ``reserved under 
     subparagraph (A)'' and inserting ``made available for use 
     under this paragraph''.
       (b) Set-Aside for Disabled Families.--Section 5(j)(2)(G)(i) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437c(j)(2)(G)(i)) is amended by striking ``fiscal years 1993 
     and 1994'' and inserting ``fiscal years 1995 and 1996''.

     SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DISABLED FAMILIES.

       Section 5(j)(3)(A) of the United States Housing Act of 1937 
     (42 U.S.C. 1437c(j)(3)(A)) is amended by striking ``fiscal 
     years 1993 and 1994'' and inserting ``fiscal years 1995 and 
     1996''.

     SEC. 115. RECAPTURE OF PUBLIC HOUSING DEVELOPMENT AMOUNTS.

       Section 5(k) of the United States Housing Act of 1937 (42 
     U.S.C. 1437c(k)) is amended by adding before the period at 
     the end of the first sentence the following: ``, unless the 
     Secretary finds that there is no feasible way for the agency 
     to begin construction or rehabilitation, or to complete 
     acquisition, within such period''.

     SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC HOUSING 
                   NEW CONSTRUCTION.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended by striking subsection (h).

     SEC. 117. REGULATORY RELIEF AND PAPERWORK REDUCTION FOR HIGH-
                   PERFORMING PUBLIC HOUSING AGENCIES.

       (a) Waiver of Rules and Reports.--Section 6(j) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437d(j)) is 
     amended by adding at the end the following new paragraph:
       ``(5)(A) Except as provided in subparagraph (B), the 
     Secretary may, for public housing agencies designated 
     pursuant to this subsection as high performing public housing 
     agencies with respect to a fiscal year, waive (by regulation 
     issued under subparagraph (C)) the applicability for the 
     ensuing fiscal year of regulatory requirements otherwise 
     applicable to public housing agencies to the extent 
     appropriate, as determined by the Secretary, to facilitate 
     more efficient operation of such agencies.
       ``(B) The Secretary may not waive the applicability of any 
     provision--
       ``(i) limiting occupancy of public housing to low-income 
     families;
       ``(ii) under section 18 requiring replacement of units in 
     the case of demolition or disposition;
       ``(iii) under the Uniform Relocation Assistance and Real 
     Property Acquisition Policies Act of 1970;
       ``(iv) that prohibits, or the purpose of which is to 
     protect persons against, discrimination on the basis of race, 
     color, religion, sex, marital status, national origin, age, 
     or handicap, or that relates to fair housing or equal 
     opportunity; or
       ``(v) under chapter 75 of title 31, United States Code.
       ``(C) During fiscal year 1995, the Secretary shall publish 
     in the Federal Register a proposed rule providing for the 
     waiver of the regulations to be waived pursuant to this 
     paragraph and identifying such regulations. The Secretary 
     shall publish such proposed rule at a time determined by the 
     Secretary to be sufficient to provide notice and an 
     opportunity for public comment before issuance of a final 
     rule under this paragraph. Such final rule shall be issued 
     not later than August 31, 1995.''.
       (b) Retention by PHA's of Savings From Efficient 
     Management.--Section 6(e) of the United States Housing Act of 
     1937 (42 U.S.C. 1437d(e)) is amended to read as follows:
       ``(e) Treatment of Savings.--
       ``(1) In general.--Any income generated by a high-
     performing public housing agency that exceeds the income 
     estimated by the agency to be generated, according to the 
     agency's annual operating budget, shall be excluded in 
     subsequent years in calculating the amount of the operating 
     subsidy provided under section 9 to the high-performing 
     public housing agency. Such savings shall be retained by the 
     agency for other housing purposes.
       ``(2) High-performing public housing agency.--For purposes 
     of paragraph (1), the term `high-performing public housing 
     agency' means, with respect to a year, a public housing 
     agency that has been designated pursuant to subsection (j) as 
     a high performing public housing agency for the last fiscal 
     year ending before the commencement of such year.''.

     SEC. 118. STANDARDS FOR LEASE TERMINATION AND EXPEDITED 
                   GRIEVANCE PROCEDURE.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended--
       (1) in subsection (k), in the first sentence of the matter 
     following paragraph (6), by striking ``criminal'' the first 
     place it appears; and
       (2) in subsection (l)(5), by striking ``criminal'' the 
     first place it appears.

     SEC. 119. AVAILABILITY OF CRIMINAL CONVICTION INFORMATION FOR 
                   SCREENING AND EVICTIONS.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended by adding at the end the following 
     new subsection:
       ``(q) Availability of Criminal Records.--
       ``(1) Availability.--Notwithstanding any other provision of 
     Federal, State, or local law, upon the request of any public 
     housing agency, the National Crime Information Center, police 
     departments, and any other law enforcement entities shall 
     provide information to the agency regarding the criminal 
     convictions of applicants for, or residents of, public 
     housing for the purpose of applicant screening, lease 
     enforcement, and eviction. A public housing agency may pay a 
     reasonable fee for such information.
       ``(2) Content.--The information provided under paragraph 
     (1) shall include information regarding convictions for any 
     felony and convictions for certain misdemeanors, including 
     crimes of violence, destruction of property, use, sale, or 
     distribution of controlled substances, illegal possession or 
     use of firearms, and hate crimes. Such information may not 
     include information regarding any criminal conviction of such 
     an applicant or resident for any act (or failure to act) 
     occurring before the applicant or resident reached 18 years 
     of age or information regarding any criminal conviction of 
     such an applicant or resident occurring more than 10 years 
     before the request under this subsection is made by the 
     public housing agency.
       ``(3) Use.--A public housing agency receiving information 
     under this subsection may use such information only for the 
     purposes provided in this subsection and such information may 
     not be disclosed to any person who is not an officer or 
     employee of the public housing agency. The Secretary shall, 
     by regulation, establish procedures necessary to ensure that 
     information provided to a public housing agency under this 
     subsection is used, and confidentiality of such information 
     is maintained, as required under this subsection.
       ``(4) Penalty.--Any person who knowingly and willfully 
     requests or obtains any information concerning an applicant 
     for, or resident of, public housing pursuant to the authority 
     under this subsection under false pretenses, or any person 
     who knowingly and willfully discloses any such information in 
     any manner to any individual not entitled under any law to 
     receive it, shall be guilty of a misdemeanor and fined not 
     more than $5,000. The term `person' as used in this paragraph 
     shall include an officer or employee of any public housing 
     agency.
       ``(5) Civil action.-- Any applicant for, or resident of, 
     public housing affected by (A) a negligent or knowing 
     disclosure of information referred to in this section about 
     such person by an officer or employee of any public housing 
     agency, which disclosure is not authorized by this 
     subsection, or (B) any other negligent or knowing action that 
     is inconsistent with this subsection, may bring a civil 
     action for damages and such other relief as may be 
     appropriate against any officer or employee of any public 
     housing agency responsible for such unauthorized action. The 
     district court of the United States in the district in which 
     the affected applicant or resident resides, in which such 
     unauthorized action occurred, or in which the officer or 
     employee alleged to be responsible for any such unauthorized 
     action resides, shall have jurisdiction in such matters. 
     Appropriate relief that may be ordered by such district 
     courts shall include reasonable attorney's fees and other 
     litigation costs.''.

     SEC. 120. DESIGNATED HOUSING.

       Section 7(e)(1) of the United States Housing Act of 1937 
     (42 U.S.C. 1437e(e)(1)) is amended--
       (1) in the first sentence, by striking ``and the Secretary 
     approves an application under this subsection for such 
     designation''; and
       (2) in the second sentence, by inserting before the period 
     at the end the following: ``, which shall provide that an 
     application for a project (or portion of a project) shall be 
     submitted and considered for approval in conjunction with 
     submission and approval of the allocation plan for the 
     project (or portion) under section 7(f)''.

     SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.

       (a) Authorization of Appropriations.--Section 9(c) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437g(c)) is 
     amended--
       (1) in paragraph (1), by striking ``There'' and all that 
     follows and inserting the following new sentence: ``There are 
     authorized to be appropriated for purposes of providing 
     annual contributions under this section $3,146,000,000 for 
     fiscal year 1995 and $3,208,000,000 for fiscal year 1996.''.
       (2) in paragraph (2), by striking ``1993 and 1994'' and 
     inserting ``1995 and 1996''; and
       (3) in paragraph (3), by striking ``1993 and 1994'' and 
     inserting ``1995 and 1996''.
       (b) Eligibility of Severely Distressed Public Housing.--
     Section 9(a)(2) of the United States Housing Act of 1937 is 
     amended--
       (1) by striking ``one'' and inserting ``that is (A)''; and
       (2) by inserting after ``section 8,'' the following: ``or 
     (B) assisted under section 24 or the program authorized under 
     (i) the third paragraph of the head, homeownership and 
     opportunity for people everywhere grants (hope grants), of 
     title II of the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 1993, or (ii) the head, severely 
     distressed public housing projects, of title II of the 
     Department of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1994;''.
       (c) Included Costs.--Section 9(a)(3)(B) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)), as 
     amended by the preceding provisions of this Act, is further 
     amended by adding at the end the following new clauses:
       ``(vii) the amount of the payment received under this 
     section by public housing agencies shall be calculated to 
     include--
       ``(I) benefits (including health care and pensions, 
     annuities, and other retirement benefits) of employees of the 
     agency;
       ``(II) the amount of any reduced revenue resulting from the 
     amendments made by subsections (b) and (c) of section 573 of 
     the Cranston-Gonzalez National Affordable Housing Act;
       ``(III) maintenance deferred;
       ``(IV) utility costs attributable to air conditioning; and
       ``(V) any increased costs of security for the public 
     housing, attributable to increases in the number of incidents 
     of vandalism and crime in the housing; and
       ``(viii) the amount of the payment received under this 
     section by a public housing agency for a fiscal year shall be 
     determined taking into consideration the actual expenses for 
     the agency for the preceding fiscal year.''.

     SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION FUNDS.

       Section 14(k)(1) of the United States Housing Act of 1937 
     (42 U.S.C. 1437l(k)(1)) is amended--
       (1) in the first sentence, by striking ``$75,000,000'' and 
     inserting ``$50,000,000''; and
       (2) by adding at the end the following new sentence: ``The 
     Secretary shall make any amounts reserved under this 
     paragraph for any fiscal year that remain unobligated on 
     September 1 of such fiscal year available for modernization 
     needs in connection with the settlement of litigation and 
     desegregation of public housing. Of the amounts reserved each 
     year under this paragraph, the Secretary shall make available 
     to the Inspector General of the Department of Housing and 
     Urban Development not more than $5,000,000 for cost in 
     connection with efforts to combat violent crime in public 
     housing. Using amounts made available pursuant to the 
     preceding sentence during fiscal years 1995 and 1996, the 
     Secretary shall provide amounts in each such fiscal year for 
     the continuation of the drug elimination activities under 
     Project Nos. IA05PO98003004 and IA05DEP0980193.''.

     SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACEMENT HOUSING.

       (a) In General.--Section 14 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437l) is amended by adding at the end 
     the following new subsection:
       ``(q) Use of Amounts for Replacement Housing.--
       ``(1) Authority.--A public housing agency may use 
     assistance under this section to provide replacement housing 
     as required by section 18 by developing additional housing 
     under this Act, in accordance with requirements applicable to 
     the development of public housing, but only if the cost of 
     providing such housing (not including costs of demolition) is 
     more cost effective than the cost of modernization of the 
     housing proposed to be replaced.
       ``(2) Limitation on amount.--In any fiscal year, a public 
     housing agency may not use more than 50 percent of any 
     assistance provided to the agency under this section for the 
     fiscal year for providing replacement housing pursuant to 
     this section.
       ``(3) Requirements.--A public housing agency may use 
     assistance under this section as provided in subsection (a) 
     only if the replacement of units is included in the 
     replacement plan of the agency.''.
       (b) Available Replacement Housing.--Section 14(c)(1) of the 
     United States Housing Act of 1937 is amended by inserting 
     before the semicolon the following: ``or, only in the case of 
     assistance used as provided under subsection (q), housing or 
     units in housing owned (or leased for a period to be 
     determined by the Secretary) by a partnership of a public 
     housing agency and other entity in which the agency has a 
     controlling interest''.

     SEC. 124. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

       Section 18 of the United States Housing Act of 1937 (42 
     U.S.C. 1437p) is amended to read as follows:


             ``demolition and disposition of public housing

       ``Sec. 18. (a) Condition of Housing.--The Secretary may 
     approve an application by a public housing agency for 
     permission to demolish or dispose of a public housing project 
     or a portion of a public housing project only if the 
     Secretary has determined that--
       ``(1) in the case of--
       ``(A) an application proposing demolition of a public 
     housing project or a portion of a public housing project, the 
     project or portion of the project is obsolete as to physical 
     condition, location, or other factors, and it is more cost 
     effective to replace the project or portion of the project 
     than to rehabilitate the project or portion of the project; 
     or
       ``(B) an application proposing the demolition of only a 
     portion of a project, the demolition will help to assure the 
     remaining useful life of the remaining portion of the 
     project;
       ``(2) in the case of an application proposing disposition 
     of real property of a public housing agency by sale or other 
     transfer--
       ``(A)(i) the property's retention is not in the best 
     interests of the tenants or the public housing agency because 
     (I) developmental changes in the area surrounding the project 
     adversely affect the health or safety of the tenants or the 
     feasible operation of the project by the public housing 
     agency, (II) disposition will allow the acquisition, 
     development, or rehabilitation of other properties which will 
     be more efficiently or effectively operated as low-income 
     housing and which will preserve the total amount of low-
     income housing stock available in the community or housing 
     sufficient to address the needs of the community as described 
     in the comprehensive housing affordability strategy under 
     section 105 of the Cranston-Gonzalez National Affordable 
     Housing Act, or (III) because of other factors which the 
     Secretary determines are consistent with the best interests 
     of the tenants and public housing agency and which are not 
     inconsistent with other provisions of this Act; and
       ``(ii) for property other than dwelling units, the property 
     is excess to the needs of a project or the disposition is 
     incidental to, or does not interfere with, continued 
     operation of a project; and
       ``(B) the net proceeds of the disposition will be used for 
     (i) the payment of development costs for the replacement 
     housing and for the retirement of outstanding obligations 
     issued to finance original development or modernization of 
     the project, which, in the case of scattered-site housing of 
     a public housing agency, shall be in an amount that bears the 
     same ratio to the total of such costs and obligations as the 
     number of units disposed of bears to the total number of 
     units of the project at the time of disposition, and (ii) to 
     the extent that any proceeds remain after the application of 
     proceeds in accordance with clause (i), the provision of 
     housing assistance for low-income families through such 
     measures as modernization of low-income housing, or the 
     acquisition, development, or rehabilitation of other 
     properties to operate as low-income housing; or
       ``(3) in the case of an application proposing demolition or 
     disposition of any portion of a public housing project, 
     assisted at any time under section 5(j)(2)--
       ``(A) such assistance has not been provided for the portion 
     of the project to be demolished or disposed within the 10-
     year period ending upon submission of the application; or
       ``(B) the property's retention is not in the best interest 
     of the tenants or the public housing agency because of 
     changes in the area surrounding the project or other 
     circumstances of the project, as determined by the Secretary.
       ``(b) Tenant Involvement and Replacement Housing.--The 
     Secretary may approve an application or furnish assistance 
     under this section or under this Act only if the following 
     requirements are met:
       ``(1) Tenant consultation and employment.--The application 
     from the public housing agency--
       ``(A) has been developed in consultation with tenants and 
     tenant councils, if any, who will be affected by the 
     demolition or disposition;
       ``(B) includes a plan to employ public housing tenants in 
     construction or rehabilitation to the extent practicable, 
     pursuant to section 3 of the Housing and Urban Development 
     Act of 1968; and
       ``(C) contains a certification by appropriate local 
     government officials that the proposed activity is consistent 
     with the applicable comprehensive housing affordability 
     strategy under section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act.
       ``(2) Relocation assistance.--All tenants to be relocated 
     as a result of the demolition or disposition will be provided 
     assistance by the public housing agency and are relocated to 
     other decent, safe, sanitary, and affordable housing, which 
     is, to the maximum extent practicable, housing of their 
     choice, including housing assisted under section 8 of this 
     Act.
       ``(3) Replacement housing.--The public housing agency has 
     developed a plan that provides for additional decent, safe, 
     sanitary, and affordable dwelling unit for each public 
     housing dwelling unit to be demolished or disposed under such 
     application or provides additional dwelling units sufficient 
     to address the needs and demographic characteristics of the 
     number of applicants on the waiting list of the agency equal 
     to the number of units to be demolished or disposed of or the 
     needs of the community as described in the comprehensive 
     housing affordability strategy under section 105 of the 
     Cranston-Gonzalez National Affordable Housing Act, which 
     plan--
       ``(A) provides for the provision of such additional 
     dwelling units through--
       ``(i) the acquisition or development of additional public 
     housing dwelling units, which may be units in housing owned 
     (or leased for a period to be determined by the Secretary) by 
     a partnership of a public housing agency and other entity in 
     which the agency has a controlling interest;
       ``(ii) the use of 15-year project-based assistance under 
     section 8;
       ``(iii) in the case of an application proposing demolition 
     or disposition of 200 or more units, the use of tenant-based 
     assistance under section 8 having a term of not less than 5 
     years;
       ``(iv) units acquired or otherwise provided for 
     homeownership (including cooperative and condominium 
     interests) by public housing residents under section 5(h), 
     subtitle B or C of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act, or other programs for homeownership 
     that have program requirements substantially equivalent to 
     the requirements established under section 605 of the Housing 
     and Community Development Act of 1987;
       ``(v) affordable housing homeownership units assisted under 
     title II of the Cranston-Gonzalez National Affordable Housing 
     Act and sold to public housing residents;
       ``(vi) rental units that are (I) assisted under title II of 
     the Cranston-Gonzalez National Affordable Housing Act 
     (notwithstanding section 212(d)(2) of such Act), or (II) 
     assisted under a State or local rental assistance program 
     that provides for rental assistance over a term of not less 
     than 15 years that is comparable in terms of eligibility and 
     contribution to rent to assistance under section 8, except 
     that this subclause shall only apply in cases provided under 
     subparagraph (C);
       ``(vii) housing assisted by a tax credit under section 42 
     of the Internal Revenue Code;
       ``(viii) housing acquired from the Resolution Trust 
     Corporation or the Federal Deposit Insurance Corporation;
       ``(ix) housing acquired under section 203 of the Housing 
     and Community Development Amendments of 1978;
       ``(x) other manners approved by the Secretary; or
       ``(xi) any combination of such methods;
       ``(B) in the case of an application proposing demolition or 
     disposition of 200 or more units, shall provide that--
       ``(i) not less than 50 percent of such additional dwelling 
     units shall be provided through the acquisition or 
     development of additional dwelling units or through project-
     based assistance; and
       ``(ii) not more than 50 percent of such additional dwelling 
     units shall be provided through tenant-based assistance under 
     section 8 having a term of not less than 5 years;
       ``(C) if it provides for the use of tenant-based assistance 
     provided under section 8 or otherwise, may be approved--
       ``(i) only after a finding by the Secretary that 
     replacement with project-based assistance is not feasible, 
     and the supply of private rental housing actually available 
     to those who would receive such assistance under the plan is 
     sufficient for the total number of families in the community 
     assisted with tenant-based assistance after implementation of 
     the plan and that such supply is likely to remain available 
     for the full term of the assistance; and
       ``(ii) only if such finding is based on objective 
     information, which shall include rates of participation by 
     landlords in the section 8 program, size, conditions and rent 
     levels of available rental housing as compared to section 8 
     standards, the supply of vacant existing housing meeting the 
     section 8 housing quality standards with rents at or below 
     the fair market rental, the number of eligible families 
     waiting for public housing or housing assistance under 
     section 8, and the extent of discrimination against the types 
     of individuals or families to be served by the assistance;
       ``(D) may provide that all or part of such additional 
     dwelling units may be located outside the jurisdiction of the 
     public housing agency (in this subparagraph referred to as 
     the `original agency') if--
       ``(i) the location is in the same housing market area as 
     the original agency, as determined by the Secretary; and
       ``(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 that such 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) of this 
     paragraph and the maximum rent provisions of subparagraph 
     (H);
       ``(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
       ``(V) allow that preference for admission to any such 
     additional units may be provided to residents of the severely 
     distressed public housing dwelling units replaced under this 
     subparagraph pursuant to section 24;

       ``(E) includes a schedule for completing the plan within a 
     period consistent with the size of the proposed demolition or 
     disposition and replacement plan, which--
       ``(i) shall not exceed 6 years, except that the Secretary 
     may extend the schedule to not more than 10 years if the 
     Secretary determines that good cause exists to extend the 
     implementation of the replacement plan under this subsection; 
     and
       ``(ii) the demolition or disposition under the plan can 
     occur in phases necessary to provide for relocation of 
     tenants under paragraph (2);
       ``(F) includes a method of ensuring that the same number of 
     individuals and families will be provided housing;
       ``(G) provides for the payment of the relocation expenses 
     of each tenant to be displaced and ensures that the rent paid 
     by the tenant following relocation will not exceed the amount 
     permitted under this Act; and
       ``(H) prevents the taking of any action to demolish or 
     dispose of any unit until the tenant of the unit is relocated 
     to decent, safe, sanitary, and affordable housing; and
       ``(I) permits the Secretary to intervene and take any 
     actions necessary to complete the plan if the public housing 
     agency fails, without good cause, to carry out its 
     obligations under the plan.
       ``(c) Limitation on Demolition and Exemption.--
       ``(1) Maximum percentage.--Notwithstanding any other 
     provision of this section, in any 5-year period a public 
     housing agency may demolish not more than the lesser of 5 
     dwelling units or 5 percent of the total dwelling units owned 
     and operated by the public housing agency, without providing 
     an additional dwelling unit for each such public housing 
     dwelling unit to be demolished, but only if the space 
     occupied by the demolished unit is used for meeting the 
     service or other needs of public housing residents.
       ``(2) Site and neighborhood standards exemption.--
     Notwithstanding any other provision of law, a replacement 
     plan under subsection (b)(3) may provide for demolition of 
     public housing units and replacement of such units 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 and the balance of replacement units are 
     provided elsewhere in the jurisdiction or pursuant to 
     subsection (b)(3)(D).
       ``(d) Treatment of Replacement Units.--With respect to any 
     dwelling units developed, acquired, or leased by a public 
     housing agency pursuant to a replacement plan under 
     subsection (b)(3)--
       ``(1) assistance may be provided under section 9 for such 
     units; and
       ``(2) such units shall be available for occupancy, operated 
     and managed in the manner required for public housing, and 
     shall be subject to the other requirements applicable to 
     public housing dwelling units.
       ``(e) Approval of Applications.--
       ``(1) In general.--The Secretary shall notify a public 
     housing agency submitting an application under this section 
     for demolition or disposition and replacement of a public 
     housing project or portion of a project of the approval or 
     disapproval of the application not later than 60 days after 
     receiving the application. If the Secretary does not notify 
     the public housing agency as required under this paragraph or 
     paragraph (2), the application shall be considered to have 
     been approved.
       ``(2) Disapproval and resubmission.--If the Secretary 
     disapproves an application, the Secretary shall specify in 
     the notice of disapproval the reasons for the disapproval and 
     the agency may resubmit the application as amended or 
     modified.
       ``(3) Annual report.--The Secretary shall submit a report 
     to the Congress annually describing for the year the 
     applications under this section approved and disapproved, the 
     number, general condition, and location of units demolished 
     or disposed of, and the number, general condition, location 
     and method of provision of units of replacement housing 
     provided pursuant to this section.
       ``(f) Action Before Approval of Application.--
       ``(1) Prohibited action.--A public housing agency shall not 
     take any action to demolish or dispose of a public housing 
     project or a portion of a public housing project without 
     obtaining the approval of the Secretary and satisfying the 
     conditions specified in subsections (a) and (b).
       ``(2) Allowable relocation.--A public housing agency may 
     relocate tenants of public housing into other dwelling units 
     before the approval of an application under this section for 
     demolition or disposition or prior to implementing a plan for 
     modernization under section 14 or 24, if units to be 
     demolished or disposed of are not decent, safe, and sanitary, 
     or if the units to be rehabilitated can not be maintained 
     cost-effectively in a decent, safe, and sanitary condition.
       ``(g) Assistance for Replacement Housing.--The Secretary 
     may provide assistance under this subsection for--
       ``(1) providing replacement public housing units pursuant 
     to subsection (b)(3)(A) for units demolished or disposed of 
     pursuant to this section; and
       ``(2) providing assistance under section 8 for replacement 
     housing pursuant to subsection (b)(3)(A) for units demolished 
     or disposed of pursuant to this section.
       ``(h) Inapplicability to Public Housing Homeownership 
     Program.--The provisions of this section shall not apply to 
     the disposition of a public housing project in accordance 
     with an approved homeownership program under title III of 
     this Act.
       ``(i) Exception to Replacement Rule.--
       ``(1) Requirements for waiver.--The Secretary shall waive 
     the applicability of the provisions of subsection (b)(3) with 
     respect to any application under this section by a public 
     housing agency for the demolition or disposition of public 
     housing dwelling units if--
       ``(A) the Secretary determines, based on information 
     provided by the public housing agency in the application and 
     the request under paragraph (2), that--
       ``(i) the requirements under subsection (b)(3) are 
     preventing or interfering with the development or acquisition 
     of new public housing dwelling units by the agency;
       ``(ii) the long-term goal of the agency in requesting the 
     waiver under this subsection is to increase the number of 
     habitable public housing dwelling units of the agency;
       ``(iii) maintaining and operating the dwelling units to be 
     demolished or disposed of is not cost effective; and
       ``(iv) sufficient financial assistance is not, and will not 
     be, available to the public housing agency to rehabilitate or 
     replace all or some of the units;
       ``(B) the Secretary determines that replacing the dwelling 
     units to be demolished or disposed under the application is 
     unnecessary because other affordable housing is available in 
     the area in which the units are located, and in making such 
     determination the Secretary shall consider the assessment 
     submitted by the public housing agency under paragraph 
     (2)(C); and
       ``(C) the public housing agency requests a waiver under 
     this subsection in accordance with the requirements under 
     paragraph (2).
       ``(2) Request for waiver.--To be eligible for a waiver 
     under this subsection, a public housing agency shall submit 
     to the Secretary a request for a waiver under this subsection 
     that includes--
       ``(A) a comprehensive plan for demolition, disposition, and 
     replacement that describes additional dwelling units to be 
     made available by the public housing agency;
       ``(B) an identification of the dwelling units for which the 
     waiver is requested; and
       ``(C) an assessment of the need of replacing such dwelling 
     units including the unit size, age, general condition, and 
     length of time such units have been vacant, the condition of 
     the neighborhood in which the dwelling units are located, and 
     the availability of dwelling units affordable to low-income 
     families within the jurisdiction in which the dwelling units 
     are located, during the implementation of the replacement 
     plan.
       ``(3) Submission to secretary.--A request for a waiver 
     under this subsection may be submitted at any time. The 
     request shall be submitted to the Secretary by certified mail 
     or any other equivalent means that provides notification to 
     the public housing agency making the request of the date of 
     receipt by the Secretary.
       ``(4) Notice of disposition of request.--Except as provided 
     in paragraph (5), the Secretary shall notify a public housing 
     agency requesting a waiver under this section of the approval 
     or disapproval of the request not later than 45 days after 
     receiving the request. If the Secretary does not notify the 
     public housing agency as required under this paragraph or 
     paragraph (5), the request for a waiver shall be considered 
     to have been approved.
       ``(5) Request for additional information.--If the Secretary 
     determines that more information is needed to make the 
     determinations under paragraph (1) than has been provided by 
     the public housing agency, the Secretary shall notify the 
     agency in writing not later 30 days after receiving the 
     request for the waiver that additional information is 
     necessary. Such notice shall describe specifically the 
     additional information required for the determinations and 
     establish a deadline for the submission of the information by 
     the agency, which shall be determined based on the difficulty 
     of obtaining the information requested. If the agency submits 
     such additional information requested before the deadline 
     established in the notice under this paragraph, the Secretary 
     shall notify the agency requesting the waiver that the 
     request is approved or disapproved not later than 30 days 
     after the submission of such additional information.
       ``(6) Statement of reasons for denying or approving 
     request.--The Secretary shall include, in each notice under 
     paragraph (4) or (5) of the denial or approval of a request 
     for a waiver under this subsection, the specific reasons for 
     denying or approving the request. The denial of any request 
     for a waiver for public housing dwelling units shall not 
     prejudice the consideration of any other subsequent request 
     for such a waiver for any of such dwelling units.''.

     SEC. 125. PUBLIC HOUSING RESIDENT OPPORTUNITY.

       Section 20 of the United States Housing Act of 1937 (42 
     U.S.C. 1437r) is amended--
       (1) by striking the section heading and inserting the 
     following new section heading:


                   ``resident opportunity program'';

       (2) in the first 2 sentences of subsection (b), by striking 
     ``resident management program'' each place it appears and 
     inserting ``resident opportunity program''; and
       (3) in subsection (f)--
       (A) by striking ``Resident Management Technical Assistance 
     and Training'' and inserting ``Resident Opportunity 
     Assistance'';
       (B) in paragraph (1), by adding at the end the following 
     new sentence: ``In addition, the Secretary may provide 
     financial assistance to resident management corporations or 
     resident councils for activities sponsored by resident 
     organizations for job training, economic development, 
     security, and other self-sufficiency activities beyond those 
     related to the management of public housing.'';
       (C) in paragraph (2), by striking ``$100,000'' and 
     inserting ``$250,000'';
       (D) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) Funding.--Of any amounts made available for financial 
     assistance under section 14, the Secretary may use to carry 
     out this subsection $25,000,000 for fiscal year 1995 and 
     $25,000,000 for fiscal year 1996.'';
       (E) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5), respectively;
       (F) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Other uses of assistance.--The Secretary may use 
     amounts available to carry out this subsection to enter into 
     contracts with--
       ``(A) various entities for monitoring, evaluation, 
     technical assistance, and information dissemination in 
     connection with activities under this subsection; and
       ``(B) resident organizations and public or private entities 
     for activities that support the economic development and 
     increased self-sufficiency of public housing residents.

     Eligible activities related to economic development and self-
     sufficiency may include programs for counseling, treatment 
     for substance abuse, child care, remedial education, job 
     training, and development of resident businesses.''.

     SEC. 126. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

       (a) Authorization of Appropriations.--Section 22(k) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437t(k)) is 
     amended to read as follows:
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $50,000,000 for fiscal year 1995 and $50,000,000 for fiscal 
     year 1996.''.
       (b) Purposes.--Section 22(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437t(a)) is amended--
       (1) in the matter preceding paragraph (1) by inserting 
     before ``to provide'' the following: ``to provide job 
     training and employment services to public housing residents 
     in connection with public and private sector jobs generated 
     by construction, modernization, maintenance, and supportive 
     service activities of public housing and other housing 
     projects and programs assisted by the Department of Housing 
     and Urban Development and'';
       (2) by redesignating paragraphs (2), (3), and (4), as 
     paragraphs (3), (4), and (5), respectively;
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) operating job banks, assisting employers to develop 
     training and apprenticeship programs, assisting businesses of 
     public housing residents, and other employment-related 
     activities;''; and
       (4) by adding at the end the following new flush sentence:

     ``The provision of services under this section shall be 
     considered the provision of housing for purposes of section 3 
     of the Housing and Urban Development Act of 1968.''.
       (c) Elimination of Supportive Services Cap.--Section 
     22(c)(4) of the United States Housing Act of 1937 is amended 
     by striking ``not more than 15 percent of''.
       (d) Economic Opportunity Activities.--Section 22 of the 
     United States Housing Act of 1937 is amended--
       (1) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Grant Authority.--The Secretary may make grants to 
     public housing agencies to adapt and provide sites in or near 
     public housing for providing services to help families 
     residing in the public housing gain better access to 
     educational and job opportunities to achieve self-sufficiency 
     and independence, and to provide such services. Assistance 
     under this section may be made available only to public 
     housing agencies that demonstrate to the satisfaction of the 
     Secretary that supportive services (as such term is defined 
     in subsection (j)) will be made available. Facilities 
     assisted under this section shall be located in or near the 
     premises of public housing.'';
       (2) in subsection (c)(3), by striking ``the renovation of 
     facilities located near the premises of 1 or more public 
     housing projects'' and inserting the following: ``the 
     acquisition of facilities located near the premises of 1 or 
     more public housing projects, the acquisition and renovation 
     of such facilities, or the renovation of such facilities,''; 
     and
       (3) in subsection (j)--
       (A) in the first sentence, by inserting before the period 
     at the end the following: ``(including opportunities under a 
     Family Self-Sufficiency program under section 23 of this Act, 
     subtitle D of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act, and the Job Training Partnership Act) 
     and to facilitating participation in such opportunities'';
       (B) in paragraph (5), by striking ``and'' at the end;
       (C) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (15), respectively; and
       (D) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) English language education for persons having no or 
     limited proficiency in English;''; and
       (E) by inserting after paragraph (6) (as so redesignated) 
     the following new paragraphs:
       ``(7) providing a job bank of available employment 
     positions;
       ``(8) assisting contractors, contractor associations, and 
     joint labor-management committees to develop and assist 
     training and apprenticeship programs;
       ``(9) funding start-up costs of business employing, or 
     owned by, public housing residents;
       ``(10) providing coordination with related government and 
     private programs;
       ``(11) carrying out job-related activities necessary to 
     establish and operate a family investment center, including 
     training, supervision of trainees, and job recruitment;
       ``(12) apprenticeship training of public housing residents 
     in job skills used in the construction modernization, 
     maintenance, and operation of public housing and other 
     housing assisted by the Department of Housing and Urban 
     Development;
       ``(13) employing public housing residents in modernization, 
     maintenance, and operation of public housing and other 
     housing assisted by the Department of Housing and Urban 
     Development;
       ``(14) training and employing public housing residents in 
     jobs providing supportive services to residents participating 
     in the program for family self-sufficiency and other economic 
     independence; and''.

     SEC. 127. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC 
                   HOUSING.

       (a) Planning Grants.--Subsection (c) of section 24 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437v(c)) is 
     amended--
       (1) in paragraph (2) by striking ``$200,000'' and inserting 
     ``$300,000'';
       (2) in paragraph (3)--
       (A) in subparagraph (G), by striking ``designing a suitable 
     replacement housing plan'' and inserting ``designing suitable 
     relocation and replacement housing plans'';
       (B) by redesignating subparagraphs (E) through (I) as 
     subparagraphs (F) through (J), respectively; and
       (C) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) planning for community service activities to be 
     carried out by residents, other members of the community, and 
     other persons willing to contribute to the social, economic, 
     or physical improvement of the community;'';
       (3) in paragraph (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) to the extent the applicant is requesting amounts for 
     community service activities, a description of the planning 
     activities for community service to be carried out by 
     residents, other members of the community, and other persons 
     willing to contribute to the social, economic, or physical 
     improvement of the community;''; and
       (5) in paragraph (5)--
       (A) in subparagraph (F), by inserting before the semicolon 
     at the end the following: ``, taking into consideration the 
     condition of the public housing of the public housing agency 
     as a whole'';
       (B) by striking subparagraph (E);
       (C) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively; and
       (D) by adding at the end the following new flush material:

     ``In making grants under this subsection, the Secretary may 
     select a lower-rated application that meets the requirements 
     pursuant to this section instead of a higher-rated 
     application to increase the national geographic diversity 
     among applications approved under this section.''.
       (b) Implementation Grants.--Subsection (d) of section 24 of 
     the United States Housing Act of 1937 is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (I), by striking ``except that'' and 
     all that follows and inserting the following: ``except that--
       ``(i) not more than 20 percent of any grant under this 
     subsection may be used for such purpose; and
       ``(ii) an amount equal to 15 percent of the amount of any 
     grant under this subsection used for such purposes shall be 
     contributed from non-Federal sources, and may 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.'';
       (B) by redesignating subparagraphs (E) through (I) (as so 
     amended) as subparagraphs (G) through (K), respectively; and
       (C) by inserting after subparagraph (D) the following new 
     subparagraphs:
       ``(E) community service activities to be carried out by 
     residents, other members of the community, and other persons 
     willing to contribute to the social, economic, or physical 
     improvement of the community;
       ``(F) replacement of public housing units;'';
       (2) in paragraph (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) to the extent the applicant is requesting amounts for 
     community service activities, a description of the community 
     service activities to be carried out by residents, other 
     members of the community, and other persons willing to 
     contribute to the social, economic, or physical improvement 
     of the community;''; and
       (3) in paragraph (4)--
       (A) by striking subparagraph (D) and inserting the 
     following new subparagraph:
       ``(D) the quality of the proposed revitalization program 
     and the suitability of the project for such a program;'';
       (B) in subparagraph (F), by inserting before the semicolon 
     at the end the following: ``, taking into consideration the 
     condition of the public housing of the applicant as a 
     whole''; and
       (C) by striking subparagraph (E);
       (D) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively; and
       (E) by adding at the end the following new flush material:

     ``In making grants under this subsection, the Secretary may 
     select a lower-rated application that meets the requirements 
     pursuant to this section instead of a higher-rated 
     application to increase the national geographic diversity 
     among applications approved under this section.''.
       (c) Exceptions to General Program Requirements.--Section 
     24(e) of the United States Housing Act of 1937 is amended--
       (1) by striking the first sentence of paragraph (2) and 
     inserting the following new sentence: ``For projects 
     revitalized under this section, a public housing agency may--
       ``(A) in lieu of selecting tenants pursuant to the 
     preferences specified under section 6(c)(4)(A)(i), select 
     tenants pursuant to a local system of preferences;
       ``(B) in making dwelling units in such projects available 
     for occupancy, disregard the order in which applications were 
     made for residency in public housing dwelling units or any 
     waiting lists established for such residency to provide for 
     substantial variation in the incomes of families residing in 
     the project, subject to the provisions of this Act relating 
     to income eligibility in public housing projects (as modified 
     under subparagraph (C));
       ``(C) notwithstanding section 16 of this Act, provide for 
     low-income families to occupy not more than 50 percent of the 
     dwelling units in a project, and
       ``(D) establish ceiling rents under section 3(a)(2).''; and
       (2) 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 of public housing units and replacement of 
     such units 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 
     limitation in subparagraph (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, but only if the public housing agency demonstrates 
     to the satisfaction of the Secretary that the local housing 
     market in which the assistance is to be used has had a 
     vacancy rate, among units whose rent does not exceed the fair 
     market rental for the area established under section 8(e), of 
     more than 3 percent for at least 6 consecutive months.
       ``(C) Alternative methods of replacement.--A revitalization 
     plan under this section may provide for replacement of public 
     housing units in the manners under subparagraph (D) of this 
     paragraph (and not subject to the requirements of 
     subparagraph (B) of section 18(b)(3)) if the agency or 
     corporation enters into such agreements as the Secretary 
     considers necessary to ensure that the replacement units will 
     remain affordable to families eligible for residency in 
     public housing for the remaining useful life of the units, as 
     determined by the Secretary.
       ``(D) Certificate and new unit mix.--Each such dwelling 
     unit demolished, disposed of, or otherwise eliminated 
     pursuant to this paragraph shall be replaced with an 
     additional dwelling unit through any combination of--
       ``(i) additional public housing dwelling units;
       ``(ii) units or housing described in clause (iv), (v), 
     (vii), (viii), or (ix) of section 18(b)(3)(A);
       ``(iii) rental units that are (I) assisted under title II 
     of the Cranston-Gonzalez National Affordable Housing Act 
     (notwithstanding section 212(d)(2) of such Act), or (II) 
     assisted under a State or local rental assistance program 
     that provides for rental assistance over a term of not less 
     than 5 years that is comparable in terms of eligibility and 
     contribution to rent to assistance under section 8; but this 
     clause shall apply to a revitalization program only if the 
     agency demonstrates to the satisfaction of the Secretary that 
     the local housing market in which the assistance is to be 
     used has had a vacancy rate, among units whose rent does not 
     exceed the fair market rental for the area established under 
     section 8(e), of more than 3 percent for at least 6 
     consecutive months; or
       ``(iv) other manners approved by the Secretary.''.
       (d) Definitions.--Subsection (h) of section 24 of the 
     United States Housing Act of 1937 is amended--
       (1) by striking paragraph (5) and inserting the following 
     new paragraphs:
       ``(6) Severely distressed public housing.--The term 
     `severely distressed public housing' means a public housing 
     project or building in a project that--
       ``(A) requires major redesign, reconstruction, or 
     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;
       ``(B) is--
       ``(i)(I) occupied predominantly by families with children 
     which 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) in comparison to 
     other housing in the area; or
       ``(ii) has a vacancy rate, as determined by the Secretary, 
     of 50 percent or more;
       ``(C) can not 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 amounts; and
       ``(D) in the case of an individual building, the building 
     is (in the determination of the Secretary) sufficiently 
     separable from the remainder of the project of which the 
     building is part to make use of the building feasible for 
     purposes of this section.
       ``(7) Support services.--The term `support services' 
     includes all activities which will promote upward mobility, 
     self-sufficiency, and improved quality of life for the 
     residents of the public housing project involved, and shall 
     include literacy training, job training, day care, and 
     economic development activities. Support services may be 
     provided to residents of the neighborhood in which the public 
     housing project involved is located.'';
       (2) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5), respectively; and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) 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, including opportunity for the 
     upward mobility of participants providing the community 
     service, through completion of education requirements, job 
     training, or alternative methods of developing skills and job 
     readiness.''.
       (e) Reports.--Section 24(i) of the United States Housing 
     Act of 1937 is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (f) Repeal.--Section 24 of the United States Housing Act of 
     1937 (42 U.S.C. 1437v) is amended by striking subsection (b).
       (g) Applicability.--Section 24 of the United States Housing 
     Act of 1937 is amended by adding at the end the following new 
     subsection:
       ``(j) Applicability.--Notwithstanding any provision of this 
     Act, with respect to a public housing project that (1) has 
     been selected for funding under this section 24 or through 
     the urban revitalization demonstration program under the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1993 (Public Law 102-389, 106 Stat. 1579; 42 U.S.C. 1437l 
     note) or the Departments of Veterans Affairs and Housing and 
     Urban Development, and Independent Agencies Appropriations 
     Act, 1994 (Public Law 103-124, 107 Stat. 1285; 42 U.S.C. 
     1437l note), and (2) has an approved comprehensive plan under 
     section 14 of this Act, the Secretary may apply any provision 
     of this section and the regulations hereunder to all 
     activities undertaken at such projects only during 
     revitalization (including activities relating to demolition, 
     modernization, reconstruction, site improvement, and 
     replacement housing).''.
       (h) 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: ``The term 
     `eligible housing' means a public housing project, or one or 
     more buildings within a project, that is owned or operated by 
     a troubled 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.''.
       (i) Applicability to Certain Project.--The amendments made 
     by this section shall apply with respect to assistance 
     provided before the date of the enactment of this Act under 
     section 24 of the United States Housing Act of 1937 for the 
     Desire Housing Development, located in New Orleans, 
     Louisiana, but only to the extent that the Housing Authority 
     of New Orleans submits to the Secretary of Housing and Urban 
     Development a description of the revitalization program for 
     such project describing the use of such assistance under the 
     provisions of such section 24, as amended, which is approved 
     by the Secretary.

     SEC. 128. PROGRAM MONITORING AND TECHNICAL ASSISTANCE.

       (a) Definition.--Section 3 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a), as amended by adding at the end 
     the following new subsection:
       ``(e) Technical Assistance and Services.--As used in 
     sections 5(c)(9) and 14(k)(1)(B), the term `technical 
     assistance and services' shall include any or all 
     undertakings by the Secretary, directly using officials and 
     employees of the Secretary, or indirectly under contract or 
     otherwise, related to the inspection or oversight of project 
     or program development or implementation, training and 
     technical assistance, public housing agency or Indian housing 
     authority program, project, or general management, crisis 
     management and operations, survey research, and the 
     preparation of reports or recommendations to the 
     Secretary.''.
       (b) Availability of Development Amounts.--Section 5(c) of 
     the United States Housing Act of 1937 (42 U.S.C. 1437c(c)) is 
     amended by adding at the end the following new paragraph:
       ``(9) Of any amounts appropriated pursuant to this Act in 
     fiscal year 1995 for public housing development (including 
     Indian housing development), the Secretary may use not more 
     than 0.5 percent for technical assistance and services.''.
       (c) Availability of Modernization Amounts.--Section 
     14(k)(1) of the United States Housing Act of 1937 (42 U.S.C. 
     1437l(k)(1)), as amended by the preceding provisions of this 
     Act, is amended--
       (1) by inserting ``(A)'' before the first sentence; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Of any amounts approved in appropriation Acts for 
     grants under this section in fiscal year 1995, the Secretary 
     may use not more than 1 percent for technical assistance and 
     services.''.

     SEC. 129. 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.--The provisions of, and the amendments made by, 
     sections 103(a)(1), 112, 114, 116, 118, 903, and 927 of the 
     Housing and Community Development Act of 1992 and sections 
     301, 302, 303, and 304 of the Multifamily Housing Property 
     Disposition Reform Act of 1994 shall apply to public housing 
     developed or operated pursuant to a contract between the 
     Secretary and an Indian housing authority.

     SEC. 130. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 222(g) of the 
     Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note) is amended by striking the first two sentences 
     and inserting the following new sentence: ``There are 
     authorized to be appropriated to carry out this section 
     $35,000,000 for fiscal year 1995 and $35,000,000 for fiscal 
     year 1996.''.
       (b) Eligibility for Assistance.--Section 222(b)(1) of the 
     Housing and Urban-Rural Recovery Act of 1983 is amended by 
     inserting before the semicolon at the end the following: ``, 
     except that the Secretary may make a grant to provide 
     additional assistance for an existing child care center 
     assisted under this section or to expand an existing child 
     care center regardless of whether such center was previously 
     assisted under this section''.
       (c) Assistance for Homeless Families.--Section 222(a)(1) of 
     the Housing and Urban-Rural Recovery Act of 1983 amended by 
     inserting before the period at the end the following: 
     ``(including, for purposes of this section, homeless families 
     with children, as defined by the Secretary)''.
       (d) Clerical Amendment.--The heading for section 222 of the 
     Housing and Urban-Rural Recovery Act of 1983 is amended to 
     read as follows: ``early childhood development programs''.

     SEC. 131. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES.

       (a) Funding.--Section 518(a) of the Cranston-Gonzalez 
     National Affordable Housing Act (12 U.S.C. 1701z-6 note) is 
     amended by striking the first and second sentences and 
     inserting the following new sentence: ``There are authorized 
     to be appropriated to carry out the demonstration program 
     under this section $6,000,000 for fiscal year 1995 and 
     $6,000,000 for fiscal year 1996.''.

     SEC. 132. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES 
                   DEMONSTRATION.

       Section 521(g) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437t note) is amended to read as 
     follows:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated for carrying out the 
     demonstration program under this section such sums as may be 
     necessary for each of fiscal years 1995 and 1996.''.

     SEC. 133. SALE OF CERTAIN SCATTERED SITE PUBLIC HOUSING.

       Section 131 of the Housing and Community Development Act of 
     1992 (Public Law 102-550; 106 Stat. 3712) is amended by 
     adding at the end the following new sentence: ``During the 
     term of the annual contributions contract relating to the 
     scattered-site public housing originally sold under this 
     section, any proceeds from the disposition of replacement 
     scattered-site dwellings purchased with (1) the proceeds from 
     such original disposition, or (2) the proceeds from the 
     disposition of any replacement scattered-site dwellings, 
     shall be used to purchase additional replacement scattered 
     site dwellings, which shall be considered public housing for 
     the purposes of such Act and for which the Secretary shall 
     provide annual contributions for operation, using amounts 
     made available under section 9(c) of such Act.''.

     SEC. 134. ELIGIBILITY OF CERTAIN PUBLIC HOUSING FOR 
                   DEMOLITION.

       Section 415 of the Department of Housing and Urban 
     Development--Independent Agencies Appropriations Act, 1988 
     (Public Law 100-202; 101 Stat. 1329-213), is amended by 
     striking ``George Loving Place, at 3320 Rupert Street, Edgar 
     Ward Place, at 3901 Holystone, Elmer Scott Place, at 2600 
     Morris, in Dallas, Texas, or''.

     SEC. 135. DEMONSTRATION PROGRAM FOR INNOVATIVE PUBLIC HOUSING 
                   AGENCIES AND RESIDENT MANAGEMENT CORPORATIONS.

       (a) Authority.--The Secretary may authorize public housing 
     agencies and resident management corporations to carry out 
     demonstrations for public housing that--
       (1) test the extent to which aspects of the public housing 
     program may be exempt from certain statutory requirements 
     while continuing to serve eligible families, and
       (2) permit agencies and resident management corporations to 
     establish policies for the operation, maintenance, 
     management, and development (including modernization) of one 
     or more projects, without regard to the requirements 
     applicable to public housing in the United States Housing Act 
     of 1937.

     In establishing such policies, public housing agencies and 
     resident management corporations shall be subject to any 
     applicable State or local law.
       (b) Waiver of Provisions of 1937 Act.--For any 
     demonstration authorized under this section, the Secretary 
     may waive the applicability of any requirements of the United 
     States Housing Act of 1937 that the Secretary determines are 
     not consistent with the purposes of a demonstration, except 
     requirements--
       (1) limiting occupancy of public housing to low-income 
     families, as defined in section 3 of the United States 
     Housing Act of 1937;
       (2) under section 18 of such Act requiring replacement of 
     units in the case of demolition or disposition (except that 
     the limitation on the use of tenant-based assistance to 
     applications proposing demolition or disposition of 200 or 
     more units may be waived); and
       (3) relating to labor standards.
       (c) Replacement Housing.--
       (1) Authority.--In authorizing a demonstration under this 
     section, the Secretary may authorize a public housing agency 
     to demolish or dispose of public housing units and replace 
     such units 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 under the 
     demonstration.
       (2) Tenant-based assistance.--Notwithstanding the 
     limitations in subparagraphs (A)(v) and (C) of section 
     18(b)(3), a public housing agency may replace not more than 
     one-third of the units demolished or disposed of under a 
     demonstration under this section with tenant-based assistance 
     under section 8, but only if the public housing agency 
     demonstrates to the satisfaction of the Secretary that the 
     local housing market in which the assistance is to be used 
     has had a vacancy rate, among units whose rent does not 
     exceed the fair market rental for the area established under 
     section 8(e), of more than 3 percent for at least 6 
     consecutive months.
       (3) Alternative methods of replacement.--In authorizing a 
     demonstration under this section, the Secretary may authorize 
     a public housing agency to provide for replacement of public 
     housing units in the manners under paragraph (4) of this 
     subsection rather than in the manners specified under the 
     various clauses of section 18(b)(3)(A) (and not subject to 
     the requirements of subparagraph (B) of section 18(b)(3)) if 
     the agency enters into such agreements as the Secretary 
     considers necessary to ensure that the replacement units will 
     remain affordable to families eligible for residency in 
     public housing for the remaining useful life of the units, as 
     determined by the Secretary.
       (4) Certificate and new unit mix.--Each such dwelling unit 
     demolished, disposed of, or otherwise eliminated pursuant to 
     this subsection shall be replaced with an additional dwelling 
     unit through any combination of--
       (A) additional public housing dwelling units;
       (B) units acquired or otherwise provided for homeownership 
     (including cooperative and condominium interests) by public 
     housing residents under section 5(h), subtitle B or C of 
     title IV of the Cranston-Gonzalez National Affordable Housing 
     Act, or other programs for homeownership that have program 
     requirements substantially equivalent to the requirements 
     established under section 605 of the Housing and Community 
     Development Act of 1987;
       (C) affordable housing homeownership units assisted under 
     title II of the Cranston-Gonzalez National Affordable Housing 
     Act and sold to public housing residents;
       (D) rental units that are (i) assisted under title II of 
     the Cranston-Gonzalez National Affordable Housing Act 
     (notwithstanding section 212(d)(2) of such Act), or (ii) 
     assisted under a State or local rental assistance program 
     that provides for rental assistance over a term of not less 
     than 5 years that is comparable in terms of eligibility and 
     contribution to rent to assistance under section 8; but this 
     subparagraph shall apply to a public housing agency only if 
     the agency demonstrates to the satisfaction of the Secretary 
     that the local housing market in which the assistance is to 
     be used has had a vacancy rate, among units whose rent does 
     not exceed the fair market rental for area established under 
     section 8(e), of more than 3 percent for at least 6 
     consecutive months;
       (E) housing assisted by a tax credit under section 42 of 
     the Internal Revenue Code;
       (F) housing acquired from the Resolution Trust Corporation 
     or the Federal Deposit Insurance Corporation;
       (G) housing acquired under section 203 of the Housing and 
     Community Development Amendments of 1978; or
       (H) other manners approved by the Secretary.
       (d) Waiver of Other Statutory Requirements.--For any 
     demonstration authorized under this section, the Secretary 
     may also waive the applicability of any provision of law that 
     applies to the projects under the demonstration and that the 
     Secretary determines is not consistent with the purposes of a 
     demonstration, except that the Secretary may not waive any 
     provision of the Uniform Relocation Assistance and Real 
     Property Acquisition Policies Act of 1970 or any other 
     provision of law relating to equal opportunity, 
     nondiscrimination, or the environment.
       (e) Selection of Demonstrations.--
       (1) Scope.--The Secretary may select not more than 25 
     public housing agencies or resident management corporations 
     (or a combination of both) to carry out not more than 25 
     demonstrations under this section. Not more than 5 of the 
     agencies selected may be agencies designated pursuant to 
     section 6(j) of the United States Housing Act of 1937 as 
     troubled or troubled with respect to the public housing 
     modernization program under section 14 of such Act.
       (2) Criteria.--The Secretary shall select agencies and 
     corporations based on selection criteria established by the 
     Secretary, which shall include the following factors:
       (A) The need for a range of project sizes.
       (B) The need for a range of types of public housing 
     agencies and resident management corporations.
       (C) The potential effects and benefits that the variations 
     proposed by the agency or corporation could have on the 
     public housing program if the variations were adopted for the 
     whole program.
       (f) Requirements.--The Secretary may authorize a 
     demonstration program under this section only if the 
     Secretary determines that the demonstration--
       (1) would not, over the term of the demonstration, result 
     in the Federal Government incurring greater costs than the 
     government would otherwise incur if the demonstration were 
     not authorized;
       (2) is consistent with the overall purposes of the public 
     housing program;
       (3) is evaluated by an independent party; and
       (4) is consistent with the Fair Housing Act, title VI of 
     the Civil Rights Act of 1964, section 504 of the 
     Rehabilitation Act of 1973, the Age Discrimination Act of 
     1975, and the National Environmental Policy Act of 1969.
       (g) Authority to Establish Additional Requirements.--In 
     authorizing a demonstration under this section, the Secretary 
     may impose such requirements as the Secretary considers to be 
     appropriate to further the purposes of the demonstration.
       (h) Reports.--
       (1) Report on demonstration.--For each demonstration site, 
     the public housing agency or resident management corporation 
     carrying out the demonstration shall submit an annual 
     progress report to the Secretary. For each demonstration 
     carried out under this section, the Secretary shall submit a 
     report to Congress not later than 1 year after completion of 
     the demonstration, describing the results of the 
     demonstration and making any recommendations for legislation.
       (2) Report on waiver for new york city.--The Secretary 
     shall conduct a study of the advisability, practicality, and 
     effects of exempting the New York City Housing Authority from 
     any provisions of law or regulation establishing requirements 
     for the site on which, and neighborhood in which, public 
     housing is developed. The Secretary shall submit a report to 
     the Congress not later than 6 months after the date of the 
     enactment of this Act describing the results of the study and 
     making a recommendation with respect to such exemption.
       (i) Term of Demonstrations.--The authority to carry out a 
     demonstration program under this section shall be effective 
     only for the period specified by the Secretary in authorizing 
     the demonstration program, which may not exceed 5 years.
       (j) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) The terms ``public housing agency'' and ``agency'' mean 
     a public housing agency, as such term is defined in section 
     3(b) of the United States Housing Act of 1937.
       (2) The terms ``resident management corporation'' and 
     ``corporation'' mean a resident management corporation 
     established in accordance with requirements of the Secretary 
     under section 20 of the United States Housing Act of 1937.
       (3) The term ``Secretary'' means the Secretary of Housing 
     and Urban Development.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated $1,000,000 for the evaluation of 
     demonstrations under this section.

     SEC. 136. DEMONSTRATION PROGRAM FOR OCCUPANCY OF OTHERWISE 
                   VACANT PUBLIC HOUSING UNITS BY MODERATE-INCOME 
                   FAMILIES.

       (a) Authority.--The Secretary of Housing and Urban 
     Development may carry out a demonstration program under which 
     public housing agencies may lease units in public housing 
     projects assisted under the United States Housing Act of 1937 
     to moderate-income families, as such term is defined by the 
     Secretary.
       (b) Requirements for Participation.--The Secretary may 
     approve a request by a public housing agency to participate 
     in the demonstration program only if the Secretary determines 
     that--
       (1) the units proposed for leasing to moderate-income 
     families would otherwise remain vacant;
       (2) the agency has demonstrated that it has actively 
     marketed the units to eligible families and that eligible 
     families are not available to fill the units covered by the 
     application and are not expected to be available for at least 
     12 months; and
       (3) the agency has agreed not to provide tenant-based 
     assistance under the United States Housing Act of 1937 for 
     unit sizes available for occupancy under the demonstration.
       (c) Duration.--The Secretary may authorize a public housing 
     agency to participate in the demonstration for up to a 2-year 
     term and may extend the term for additional periods of up to 
     2 years, if the agency submits another application that meets 
     the requirements of this section.

     SEC. 137. STUDY OF ADEQUACY OF PAYMENT IN LIEU OF TAXES.

       The Comptroller General of the United States shall conduct 
     a study of the payments made during recent years by public 
     housing agencies to State and local governments in lieu of 
     taxes, pursuant to section 6(d) of the United States Housing 
     Act of 1937, to determine whether such payments adequately 
     compensate for the amount of taxes foregone by such 
     governments pursuant to such section. The Comptroller General 
     shall submit a report to the Congress describing the results 
     of the study not later than the expiration of the 1-year 
     period beginning on the date of the enactment of this Act.
                    Subtitle C--Section 8 Assistance

     SEC. 141. COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

       Section 6(j) of the HUD Demonstration Act of 1993 (42 
     U.S.C. 1437f note) is amended to read as follows:
       ``(j) Authorization of Appropriations.--Of any amounts 
     appropriated for incremental assistance under section 8 of 
     the United States Housing Act of 1937, the Secretary may use 
     not more than $150,000,000 in fiscal year 1995 and 
     $200,000,000 in fiscal year 1996 to carry out this 
     section.''.

     SEC. 142. MERGER OF SECTION 8 RENTAL ASSISTANCE PROGRAMS.

       (a) In General.--Section 8 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f) is amended to read as follows:


          ``rental housing assistance for low-income families

       ``Sec. 8. (a) Authority and Purpose.--
       ``(1) In general.--For the purposes of aiding low-income 
     families in obtaining a decent place to live and promoting 
     economically mixed housing, the Secretary may provide 
     assistance payments with respect to existing housing in 
     accordance with the provisions of this section.
       ``(2) Elderly housing.--Notwithstanding any other provision 
     of this Act, assistance payments under this section may be 
     provided, in accordance with regulations prescribed by the 
     Secretary, with respect to some or all of the units in any 
     project approved pursuant to section 202 of the Housing Act 
     of 1959 (as in effect before October 1, 1991).
       ``(b) Annual Contributions Contracts for Rental 
     Assistance.--
       ``(1) In general.--The Secretary may enter into annual 
     contributions contracts under this subsection with public 
     housing agencies to provide rental housing assistance under 
     this section for low-income families. Such annual 
     contributions contracts shall bind the Secretary to make such 
     authority, and any amendments increasing such authority, 
     available to the public housing agency for a specified 
     period.
       ``(2) Secretary acting as pha.--In areas where no public 
     housing agency has been organized or where the Secretary 
     determines that a public housing agency is unable to 
     implement the provisions of this section, the Secretary may 
     enter into such contracts and perform the other functions 
     assigned to a public housing agency by this section.
       ``(3) Treatment of assistance for supportive housing for 
     the disabled.--The Secretary may not consider the receipt by 
     a public housing agency of assistance under section 811(b)(1) 
     of the Cranston-Gonzalez National Affordable Housing Act, or 
     the amount received, in approving assistance under this 
     section for the agency or in determining the amount of such 
     assistance to be provided to the agency.
       ``(c) Assistance Contracts.--
       ``(1) In general.--Each public housing agency that receives 
     amounts under an annual contributions contract may enter into 
     assistance contracts to make rental assistance payments to 
     owners of existing dwelling units in accordance with the 
     provisions of this section.
       ``(2) PHA acting as owner.--A public housing agency may 
     contract to make rental assistance payments under this 
     section to itself (or any agency or instrumentality thereof) 
     as the owner of dwelling units, and the agency shall be 
     subject to the same program requirements as are applied to 
     other owners. In such cases, the Secretary may establish 
     initial rents within applicable limits.
       ``(3) Inapplicable provisions.--Sections 5(e) and 6 and any 
     other provisions of this Act that are inconsistent with the 
     provisions of this section shall not apply to assistance 
     contracts entered into pursuant to this section.
       ``(d) Maximum Monthly Rent.--
       ``(1) In general.--Each assistance contract entered into 
     pursuant to this section shall establish the maximum monthly 
     rent (including utilities and all maintenance and management 
     charges) that the owner is entitled to receive for each 
     dwelling unit for which rental assistance payments are to be 
     made under the contract. Except as provided in paragraph (2), 
     the maximum monthly rent shall not exceed by more than 10 
     percent the fair market rental under subsection (e) for the 
     market area in which the dwelling unit is located. If units 
     assisted under this section are exempt from local rent 
     control while they are so assisted or otherwise, the maximum 
     monthly rent for such units shall be reasonable in comparison 
     with other units in the market area that are exempt from 
     local rent control.
       ``(2) Exception.--The maximum monthly rent may exceed the 
     fair market rental--
       ``(A) by more than 10 but not more than 20 percent, but 
     only if the Secretary determines that special circumstances 
     warrant such higher maximum rent or that such higher rent is 
     necessary to the implementation of a comprehensive housing 
     affordability strategy under section 105 of the Cranston-
     Gonzalez National Affordable Housing Act; or
       ``(B) by such higher amount, only if requested by the low-
     income family assisted and approved by the public housing 
     agency in accordance with subsection (f)(2).
       ``(3) Annual adjustments.--Each assistance contract shall 
     provide for adjustment in the maximum monthly rents for units 
     covered by the contract not less than annually to reflect 
     changes in the fair market rentals established under 
     subsection (e) for the housing area for similar types and 
     sizes of dwelling units or, if the Secretary determines, on 
     the basis of a reasonable formula.
       ``(4) Adjustments due to expenses.--Each assistance 
     contract shall further provide for the Secretary to make 
     additional adjustments in the maximum monthly rent for units 
     assisted under the contract to the extent the Secretary 
     determines such adjustments are necessary to reflect 
     increases in the actual and necessary expenses of owning and 
     maintaining the units that have resulted from substantial 
     general increases in real property taxes, utility rates, or 
     similar costs that are not adequately compensated for by the 
     adjustment in the maximum monthly rent authorized by 
     paragraph (3). The Secretary shall make additional 
     adjustments in the maximum monthly rent for units under 
     contract (subject to the availability of appropriations for 
     contract amendments) to the extent the Secretary determines 
     such adjustments are necessary to reflect increases in the 
     actual and necessary expenses of owning and maintaining the 
     units that have resulted from the expiration of a real 
     property tax exemption.
       ``(5) Adjustments due to criminal activity.--If the 
     Secretary determines that a project assisted under this 
     section is located in a community where criminal activity is 
     generally prevalent and the operating, maintenance, and 
     capital repair expenses for the project have been 
     substantially increased primarily as a result of the 
     prevalence of such activity, the Secretary may (at the 
     discretion of the Secretary and subject to the availability 
     of appropriations for contract amendments for this purpose), 
     on a project-by-project basis, provide adjustments to the 
     maximum monthly rents, to a level not exceeding 120 percent 
     of the project rents, to cover the costs of maintenance, 
     security, capital repairs, and reserves required for the 
     owner to carry out a strategy acceptable to the Secretary for 
     addressing the problem of criminal activity. The Secretary 
     may waive the applicability of any rent comparability 
     standard required under this subsection to implement this 
     paragraph.
       ``(6) Adjustments due to lead-based paint reduction for 
     housing receiving project-based assistance.--The Secretary 
     may (at the discretion of the Secretary and subject to the 
     availability of appropriations for contract amendments), on a 
     project-by-project basis for projects receiving project-based 
     assistance, provide adjustments to the maximum monthly rents 
     to cover the costs of evaluating and reducing lead-based 
     paint hazards, as defined in section 1004 of the Residential 
     Lead-Based Paint Hazard Reduction Act of 1992.
       ``(7) Limitations on adjustments.--
       ``(A) General comparability rule.--Adjustments in the 
     maximum rents under paragraphs (3) through (6) shall not 
     result in material differences between the rents charged for 
     assisted units and unassisted units of similar quality, type, 
     and age in the same market area, as determined by the 
     Secretary.
       ``(B) Comparability studies.--
       ``(i) To carry out subparagraph (A), the Secretary shall 
     issue regulations to provide for conducting comparability 
     studies for projects where the Secretary has reason to 
     believe that the application of the formula adjustments under 
     paragraph (3) would result in such material differences. The 
     Secretary shall conduct such studies upon the request of any 
     owner of any project, or as the Secretary determines to be 
     appropriate by establishing, to the extent practicable, a 
     modified annual adjustment factor for such market area, as 
     the Secretary shall designate, that is geographically smaller 
     than the applicable housing area used for the establishment 
     of the annual adjustment factor under paragraph (3). The 
     Secretary shall establish such modified annual adjustment 
     factor on the basis of the results of a study conducted by 
     the Secretary of the rents charged, and any change in such 
     rents over the previous year, for assisted units and 
     unassisted units of similar quality, type, and age in the 
     smaller market area. Where the Secretary determines that such 
     modified annual adjustment factor cannot be established or 
     that such factor when applied to a particular project would 
     result in material differences between the rents charged for 
     assisted units and unassisted units of similar quality, type, 
     and age in the same market area, the Secretary may apply an 
     alternative methodology for conducting comparability studies 
     in order to establish rents that are not materially different 
     from rents charged for comparable unassisted units.
       ``(ii) If the Secretary or appropriate State agency does 
     not complete and submit to the project owner a comparability 
     study not later than 60 days before the anniversary date of 
     the assistance contract under this section, the automatic 
     annual adjustment factor shall be applied. The Secretary may 
     not reduce the contract rents in effect on or after April 15, 
     1987, for newly constructed, substantially rehabilitated, or 
     moderately rehabilitated projects assisted under this section 
     (including projects assisted under this section as in effect 
     prior to November 30, 1983), unless the project has been 
     refinanced in a manner that reduces the periodic payments of 
     the owner. Any maximum monthly rent that has been reduced by 
     the Secretary after April 14, 1987, and prior to November 7, 
     1988, shall be restored to the maximum monthly rent in effect 
     on April 15, 1987.
       ``(iii) For any project which has had its maximum monthly 
     rents reduced after April 14, 1987, the Secretary shall make 
     assistance payments (from amounts reserved for the original 
     contract) to the owner of such project in an amount equal to 
     the difference between the maximum monthly rents in effect on 
     April 15, 1987, and the reduced maximum monthly rents, 
     multiplied by the number of months that the reduced maximum 
     monthly rents were in effect.
       ``(e) Fair Market Rentals.--
       ``(1) In general.--The Secretary shall establish fair 
     market rentals under this subsection periodically, but not 
     less than annually, for existing rental dwelling units 
     suitable for occupancy by low-income families assisted under 
     this section. The Secretary shall establish the fair market 
     rental by market area for various sizes and types of dwelling 
     units. For a market area, the fair market rental for any size 
     and type of dwelling unit shall be a dollar amount not less 
     than the amount that results in the rents charged for 45 
     percent of the standard quality rental units of such size and 
     type in the market area being less than such dollar amount. 
     For purposes of determining the dollar amount under the 
     preceding sentence, the Secretary shall consider only rental 
     units occupied by households whose initial occupancy in their 
     current units commenced not more than 15 months before the 
     determination and shall not consider public housing units and 
     units constructed less than 24 months before the 
     determination.
       ``(2) Effectiveness and adjustment.--The Secretary shall 
     publish proposed fair market rentals for each area in the 
     Federal Register with reasonable time for public comment, and 
     such fair market rentals shall become effective upon the date 
     of publication in final form in the Federal Register. Each 
     fair market rental in effect under this subsection shall be 
     adjusted to be effective on October 1 of each year to reflect 
     changes, based on the most recent available data trended so 
     the rentals will be current for the year to which they apply, 
     of rents for existing rental dwelling units, as the case may 
     be, of various sizes and types in the market area suitable 
     for occupancy by families assisted under this section.
       ``(3) Certain areas.--The Secretary shall establish 
     separate fair market rentals under this subsection for 
     Westchester County in the State of New York. The Secretary 
     shall also establish separate fair market rentals under this 
     paragraph for Monroe County in the Commonwealth of 
     Pennsylvania. In establishing fair market rentals for the 
     remaining portion of the market areas in which Monroe County 
     is located, the Secretary shall establish the fair market 
     rentals as if such portion included Monroe County.
       ``(4) Required review.--If at any time, for any public 
     housing agency, more than 50 percent of the families on 
     behalf of whom assistance is provided under this section by 
     the agency are paying as rent more than the amount specified 
     under section 3(a) (as authorized in subsection (f)(2)), the 
     agency shall review the fair market rentals established under 
     this subsection for the market areas in the jurisdiction of 
     the public housing agency.
       ``(f) Amount of Monthly Assistance Payment and Due Process 
     Rights.--
       ``(1) In general.--The amount of the monthly assistance 
     payment under this section with respect to any dwelling unit 
     shall be the difference between the maximum monthly rent that 
     the contract provides that the owner is to receive for the 
     unit and the rent the family is required to pay under section 
     3(a).
       ``(2) Increased family payment.--A family on behalf of whom 
     tenant-based assistance payments are made under this section 
     may pay as rent for a dwelling unit assisted under this 
     section more than the amount specified under section 3(a), 
     but only if--
       ``(A) the family notifies the public housing agency of its 
     interest in a unit renting for an amount that exceeds the 
     permissible maximum monthly rent established for the market 
     area under subsection (d);
       ``(B) such agency determines that the rent for the unit and 
     the rental payments of the family are reasonable, after 
     taking into account other family expenses (including child 
     care, unreimbursed medical expenses, transportation, and 
     other appropriate family expenses; and
       ``(C) such amount does not exceed 40 percent of the 
     family's monthly adjusted income.
       ``(3) Increases in assistance payments.--The Secretary 
     shall take any action necessary, including making contracts 
     for assistance payments in amounts exceeding the amounts 
     required upon the initial renting of dwelling units, 
     reserving annual contributions authority for the purpose of 
     amending assistance contracts, or allocating a portion of new 
     authorizations for the purpose of amending assistance 
     contracts, to ensure that assistance payments are increased 
     on a timely basis to cover increases in maximum monthly rents 
     or decreases in family incomes.
       ``(4) Reviews of family incomes.--
       ``(A) In general.--Reviews of family incomes for purposes 
     of this section shall be made annually and shall be subject 
     to the provisions of section 904(e) of the Stewart B. 
     McKinney Homeless Assistance Amendments Act of 1988. For 
     families for whom an increased rental payment has been 
     approved under paragraph (2), such review shall include 
     determining whether the rent for the unit and the rental 
     payments of the family continue to be reasonable, in 
     accordance with subparagraphs (B) and (C) of paragraph (2).
       ``(B) Procedures.--The Secretary shall establish procedures 
     that are appropriate and necessary to ensure that income data 
     provided to public housing agencies and owners by families 
     applying for or receiving assistance under this section is 
     complete and accurate.
       ``(C) Confidentiality.--Any income information received 
     pursuant to this paragraph shall remain confidential and 
     shall be used only for the purpose of verifying incomes in 
     order to determine eligibility of families for benefits (and 
     the amount of such benefits, if any) under this section.
       ``(5) Due process rights in cases of adverse action.--In 
     the case of any action proposed to be taken by a public 
     housing agency, any family receiving assistance under this 
     section adversely affected by such action shall have the 
     right to at least the basic elements of due process with 
     regard to such action, as follows:
       ``(A) Written notice of the intended adverse action and the 
     reason for such action shall be provided to the family not 
     less than 30 days before the action is to be taken, or, in a 
     case where the health or safety of other families is 
     threatened, a reasonable period of time considering the 
     seriousness of the situation (but not to exceed 30 days).
       ``(B) The family shall have the right to request a hearing 
     within 30 days after receipt of the notice.
       ``(C) The family shall have the right to a hearing before 
     an impartial hearing officer.
       ``(D) The family shall have the right to be represented at 
     the hearing by an attorney or other advocate.
       ``(E) The family shall have the right to examine the 
     evidence supporting the action and all evidence that the 
     public housing agency intends to use.
       ``(F) The family shall have the right to present 
     testimonial and documentary evidence and to cross-examine 
     adverse witnesses.
       ``(G) The hearing officer shall issue a written decision, 
     which shall be based solely upon the evidence introduced at 
     the hearing and which shall state the basis of the decision.
       ``(g) Eligibility of Units for Assistance.--
       ``(1) Occupancy status.--Each assistance contract shall 
     provide that assistance payments may be made only with 
     respect to the following dwelling units:
       ``(A) Occupied units.--A dwelling unit under lease for 
     occupancy by a family determined to be a low-income family at 
     the time it initially occupies the dwelling unit or by a 
     family that qualifies to receive assistance under this 
     section pursuant to section 223 or 226 of the Low-Income 
     Housing Preservation and Resident Homeownership Act of 1990.
       ``(B) Unoccupied units.--An unoccupied dwelling unit, but 
     only if--
       ``(i)(I) a family vacates the dwelling unit before the 
     expiration date of the lease for occupancy, or (II) a good 
     faith effort is being made to fill the unoccupied unit; and
       ``(ii) the costs of such vacancy are not charged to or paid 
     by the family vacating the dwelling unit.

     Payments for units referred to in this subparagraph may be 
     made only for a period not exceeding 60 days, except that 
     such payments may be made, in the case of a newly constructed 
     or substantially rehabilitated project, after the expiration 
     of such 60-day period in an amount equal to the debt service 
     attributable to such an unoccupied dwelling unit for a period 
     not to exceed one year, if a good faith effort is being made 
     to fill the unit and the unit provides decent, safe, and 
     sanitary housing. No such payment may be made after the 
     expiration of such 60-day period if the Secretary determines 
     that the dwelling unit is in a project which provides the 
     owner with revenues exceeding the costs incurred by such 
     owner with respect to such project.
       ``(2) Owner's status.--A public housing agency shall not 
     approve the rental of a dwelling unit if--
       ``(A) the owner--
       ``(i) is debarred, suspended, or subject to limited denial 
     of participation under part 24 of title 24, Code of Federal 
     Regulations; or
       ``(ii) has been convicted of drug trafficking;
       ``(B) the owner owns any other dwelling unit in the same 
     project, which is assisted under this section and at such 
     time, such unit is not in compliance in any material respect 
     with standards for housing quality for units so assisted, but 
     the public housing agency shall provide an owner of any such 
     dwelling unit a reasonable opportunity to correct the 
     noncompliance before denying approval; or
       ``(C) the owner owns or has owned dwelling units in the 
     same project, which are assisted under this section (or any 
     other program of the Federal Government for housing 
     assistance) and such units have repeatedly or regularly 
     failed to comply with the housing quality standards 
     applicable to such units.
       ``(h) Other Provisions of Assistance Contracts.--Contracts 
     to make assistance payments entered into by any public 
     housing agency (or by the Secretary) with an owner of 
     existing housing units shall meet the following requirements:
       ``(1) Contract term.--Each assistance contract shall have a 
     term of not less than one month nor more than 180 months. The 
     Secretary shall permit public housing agencies to enter into 
     assistance contracts having terms of less than 12 months to 
     the extent necessary to avoid disruption in assistance to 
     eligible families if the annual contributions contract for 
     the agency under subsection (b) will expire within 1 year.
       ``(2) Preferences.--Each assistance contract shall provide 
     that, in making assistance available pursuant to the 
     contract--
       ``(A) for not less than 70 percent of the families who 
     initially receive project-based assistance, and
       ``(B) for not less than 90 percent of the families who 
     initially receive tenant-based assistance in any 1-year 
     period,

     preference shall be given to families that (i) occupy 
     substandard housing (including families that are homeless or 
     living in a shelter for homeless families), (ii) are paying 
     more than 50 percent of family income for rent, or (iii) are 
     involuntarily displaced (including displacement because of 
     disposition of a multifamily housing project under section 
     203 of the Housing and Community Development Amendments of 
     1978) at the time they are seeking assistance under this 
     section.
       ``(3) Secondary preferences.--Each assistance contract 
     shall provide that, for any assistance remaining in any 1-
     year period after assistance is made available pursuant to 
     paragraph (2), preference for such assistance shall be given 
     to families who qualify under a system of local preferences 
     established by the public housing agency in writing and after 
     public hearing to respond to local housing needs and 
     priorities, which may include--
       ``(A) assisting very low-income families who either reside 
     in transitional housing assisted under title IV of the 
     Stewart B. McKinney Homeless Assistance Act or participate in 
     a program designed to provide public assistance recipients 
     with greater access to employment and educational 
     opportunities;
       ``(B) assisting families in accordance with subsection 
     (q)(1)(B);
       ``(C) assisting families identified by local public 
     agencies involved in providing for the welfare of children as 
     having a lack of adequate housing that is a primary factor in 
     the imminent placement of a child in foster care, or in 
     preventing the discharge of a child from foster care and 
     reunification with his or her family;
       ``(D) assisting youth, upon discharge from foster care, in 
     cases in which return to the family or extended family or 
     adoption is not available;
       ``(E) assisting veterans who are eligible and have applied 
     for assistance, will use the assistance for a dwelling unit 
     designed for the handicapped, and, upon discharge or 
     eligibility for discharge from a hospital or nursing home, 
     have physical disability which, because of the configuration 
     of their homes, prevents them from access to or use of their 
     homes; and
       ``(F) achieving other objectives of national housing policy 
     as established by law.

     A public housing agency may not establish a preference for 
     assistance that provides preference based on residency in the 
     jurisdiction of the public housing agency.
       ``(4) Tenant selection.--Each assistance contract shall 
     provide that the selection of tenants for such dwelling units 
     shall be the function of the owner, subject to any provisions 
     of the annual contributions contract between the Secretary 
     and the agency. The owner shall use tenant selection 
     criteria, which shall provide as follows:
       ``(A) Prohibition of persons engaged in drug activity.--The 
     criteria shall prohibit any individual or family evicted from 
     housing assisted under this Act by reason of drug-related 
     criminal activity from having a preference under any 
     provision of this paragraph for 3 years unless the evicted 
     tenant successfully completes a rehabilitation program 
     approved by the agency or owner. The agency or the owner may 
     waive the application of the preceding sentence under 
     standards established by the Secretary, which shall provide 
     for such waiver for any member of a family of an individual 
     prohibited from tenancy under this subparagraph who the 
     agency or owner determines clearly did not participate in and 
     had no knowledge of such criminal activity or when 
     circumstances leading to eviction no longer exist.
       ``(B) Other requirements for project-based assistance.--
     With respect only to project-based assistance, the criteria 
     shall--
       ``(i) be consistent with the purpose of improving housing 
     opportunities for very low-income families;
       ``(ii) be reasonably related to program eligibility and an 
     applicant's ability to perform the obligations of the 
     assisted lease;
       ``(iii) be established in writing; and
       ``(iv) provide for the owner to promptly provide to any 
     rejected applicant (I) written notice of the grounds for the 
     rejection, and (II) an opportunity to meet with the decision 
     maker to evaluate the validity of the reasons for rejection 
     and rectify any erroneous decisions.
       ``(5) Lease provisions.--Each assistance contract shall 
     provide that the lease between the tenant of any unit and the 
     owner--
       ``(A) shall be for at least one year or the term of such 
     assistance contract, whichever is shorter;
       ``(B) shall contain other terms and conditions specified by 
     the Secretary, including provisions meeting the requirements 
     of paragraphs (6), (7), and (8); and
       ``(C) shall be in a standard form which is used in the 
     local housing market area by the owner and which applies 
     generally to tenants in the property who are not assisted 
     under this section, together with any addendum necessary to 
     include in the lease the provisions required under 
     subparagraph (B).
       ``(6) General grounds for termination of tenancy.--Each 
     assistance contract shall provide that the owner shall not 
     terminate the tenancy of the tenant of any unit except for 
     serious or repeated violation of the terms and conditions of 
     the lease, for violation of applicable Federal, State, or 
     local law, or for other good cause. The withholding of 
     assistance payments for a dwelling unit pursuant to paragraph 
     (10) shall not constitute good cause for termination of the 
     tenancy of the tenant of the unit.
       ``(7) Termination for activity.--Each assistance contract 
     shall provide that any activity that threatens the health, 
     safety, or right to peaceful enjoyment of the premises by 
     other tenants, any activity that threatens the health, 
     safety, or right to peaceful enjoyment of their residences by 
     persons residing in the immediate vicinity of the premises, 
     or any drug-related criminal activity on or near such 
     premises, engaged in by a tenant of any unit, any member of 
     the tenant's household, or any guest or other person under 
     the tenant's control, shall be cause for termination of 
     tenancy.
       ``(8) Notice of termination of tenancy.--Each assistance 
     contract shall provide that before terminating the tenancy of 
     any tenant, the owner shall provide written notice to the 
     tenant specifying the legal and factual grounds for such 
     action, which shall be provided in accordance with any 
     requirements under State or local law.
       ``(9) Maintenance and replacement.--Each assistance 
     contract shall provide that maintenance and replacement 
     (including redecoration) shall be performed in accordance 
     with the standard practice for the building concerned as 
     established by the owner and agreed to by the agency (or the 
     Secretary). With the approval of the Secretary, the public 
     housing agency administering a contract under this section 
     with respect to existing housing units may exercise all 
     management and maintenance responsibilities with respect to 
     the units pursuant to a contract between such agency and the 
     owner of such units.
       ``(10) Enforcement of housing quality standards.--
       ``(A) In general.--Each assistance contract shall provide 
     for action under this paragraph if a unit assisted under this 
     section fails to comply with the standards for housing 
     quality for units so assisted.
       ``(B) Notification.--If the agency (or the Secretary) 
     determines that a unit assisted under this section fails to 
     comply in any material respect with the standards for housing 
     quality for units so assisted, the agency (or the Secretary) 
     shall notify the tenant and owner of the unit of the 
     noncompliance and the possible actions under this paragraph.
       ``(C) Correction of noncompliance.--The agency may approve 
     the dwelling unit for assistance under this section, on the 
     condition that the noncompliance is corrected, if (i) the 
     agency determines that the noncompliance is minor and can be 
     corrected within 15 days, (ii) the agency provides notice of 
     the conditional approval to the owner, (ii) the owner 
     provides a written commitment to the agency to correct the 
     noncompliance within the time period required by the agency, 
     not to exceed 15 days, and (iii) the conditional approval 
     will expedite the occupancy of an eligible tenant with 
     assistance under this section. The agency shall reinspect any 
     unit for which conditional approval is made under this 
     subparagraph within the period referred to in clause (ii) of 
     the preceding sentence, and if the agency determines that the 
     noncompliance is not corrected, the agency may take action 
     under subparagraph (D).
       ``(D) Failure to correct serious noncompliance.--If any 
     serious noncompliance with such standards is not corrected 
     within a reasonable period of time after such notification, 
     the agency (or the Secretary) shall withhold some or all of 
     the assistance amounts under this section with respect to the 
     unit and promptly--
       ``(i) use such amounts to make necessary repairs or 
     contract to have such repairs made;
       ``(ii) release any withheld amounts to the owner after 
     repairs are made by the owner, in an amount not exceeding the 
     cost of the repairs;
       ``(iii) release any withheld amounts to the applicable 
     State or local housing agency after repairs are made by such 
     agency, in an amount not exceeding the cost of the repairs; 
     or
       ``(iv) upon the request of the tenant, release any withheld 
     amounts to--

       ``(I) the tenant to reimburse the tenant for the reasonable 
     cost of any necessary repairs performed or paid for by the 
     tenant; or
       ``(II) such person secured by the tenant and approved by 
     the agency (or the Secretary) to make such necessary repairs.

     If an agency (or the Secretary) withholds any assistance 
     amounts pursuant to this subparagraph, the agency (or the 
     Secretary) shall promptly notify the tenant of the unit for 
     which assistance is withheld of the withholding and may not 
     terminate the assistance contract unless and until the tenant 
     has relocated to decent, safe, and sanitary housing.
       ``(11) Standards and obligations of residency in housing 
     receiving project-based assistance.--Each assistance contract 
     for project-based assistance under subsection (i) shall 
     provide that the owner shall ensure and maintain compliance 
     with subtitle C of title VI of the Housing and Community 
     Development Act of 1992 and any regulations issued under such 
     subtitle.
       ``(12) Service coordinators.--In determining the amount of 
     assistance provided under an assistance contract for tenant-
     based assistance under this paragraph, the Secretary may 
     increase the amount annually provided with respect to such 
     project to provide for the costs of employing or otherwise 
     retaining the services of one or more service coordinators 
     under section 671 of the Housing and Community Development 
     Act of 1992 to coordinate the provision of any services 
     within the project for residents of the project who are 
     elderly or disabled families.
       ``(13) Other.--Each assistance contract shall provide that 
     the agency and the owner shall carry out such other 
     appropriate terms and conditions as may be mutually agreed to 
     by the agency and owner.
       ``(i) Project-Based Assistance.--
       ``(1) Authority.--Pursuant to an annual contributions 
     contract entered into under subsection (b), a public housing 
     agency may enter into a assistance contract providing for 
     assistance payments under this section that are attached to a 
     structure.
       ``(2) Requirements.--Any public housing agency may approve 
     project-based assistance under this subsection with respect 
     to any or all of the assistance provided by the public 
     housing agency if--
       ``(A) the owner agrees to rehabilitate the structure other 
     than with assistance under this Act and the owner otherwise 
     complies with the requirements of this section; and
       ``(B) in the case of any newly constructed structure, the 
     owner or prospective owner agrees to construct the structure 
     other than with assistance under this Act and otherwise 
     complies with the requirements of this section.
       ``(3) Long-term affordability.--
       ``(A) In general.--In the case of an assistance contract 
     for project-based assistance under this subsection, a public 
     housing agency shall enter into a contract with an owner, 
     contingent upon the future availability of appropriations for 
     the purpose of renewing expiring contracts for assistance 
     payments as provided in appropriations Acts, to extend the 
     term of the underlying assistance contract for such period or 
     periods as the Secretary determines to be appropriate to 
     achieve long-term affordability of the housing. The contract 
     shall obligate the owner to have the extensions of the 
     assistance contract accepted by the owner and the owner's 
     successors in interest.
       ``(B) Term of assistance for low-income housing 
     preservation.--The contract for assistance may, at the option 
     of the public housing agency, have an initial term not 
     exceeding 15 years for any assistance that is attached--
       ``(i) to projects assisted under a State program that 
     permits the owner of the projects to prepay a State assisted 
     or subsidized mortgage on the structure; and
       ``(ii) for the purpose of providing incentives to owners to 
     preserve such projects for occupancy by low- and moderate-
     income families (for the period that assistance under this 
     subparagraph is available) and assisting low-income tenants 
     to afford any increases in rent that may be required to 
     induce the owner to maintain occupancy in the project by low- 
     and moderate-income tenants.
     Any assistance provided to low-income tenants in the manner 
     described in this subparagraph shall not be considered for 
     purposes of the limitation under subsection (h)(2) regarding 
     the percentage of families that may receive assistance under 
     this section who do not qualify for preferences under such 
     subsection.
       ``(4) Service coordinators.--In determining the amount of 
     assistance provided under an assistance contract for project-
     based assistance under this subsection or a contract for 
     assistance for housing constructed or substantially 
     rehabilitated pursuant to assistance provided under section 
     8(b)(2) of this Act (as such section existed before October 
     1, 1983), the Secretary may increase the amount annually 
     provided with respect to such project to provide for the 
     costs of employing or otherwise retaining the services of one 
     or more service coordinators under section 671 of the Housing 
     and Community Development Act of 1992 to coordinate the 
     provision of any services within the project for residents of 
     the project who are elderly or disabled families.
       ``(j) Termination of Assistance Contracts.--
       ``(1) Termination of tenant-based assistance.--
       ``(A) Notice by owner.--Any owner terminating any 
     assistance contract under this section for tenant-based 
     assistance shall provide written notice to the public housing 
     agency and the tenants involved of the proposed termination 
     not less than 90 days before the termination of the contract. 
     The notice shall specify the date of the termination and the 
     reasons for the termination, with detail sufficient to enable 
     the agency to evaluate whether the termination is lawful.
       ``(B) Review of notice by pha.--The public housing agency 
     shall review the notice and issue a written finding of the 
     legality of the termination and the reasons for the 
     termination. Within 30 days after issuance of the findings, 
     the owner shall provide written notice to each tenant of the 
     decision, together with the written findings of the agency 
     regarding the termination.
       ``(2) Termination of project-based assistance contracts.--
       ``(A) Notice by owner.--Any owner terminating any 
     assistance contract under subsection (i) for project-based 
     assistance shall provide written notice to the Secretary and 
     the tenants involved of the proposed termination not less 
     than one year before the termination of the contract. The 
     notice shall specify the date of the termination and the 
     reasons for the termination, with detail sufficient to enable 
     the Secretary to evaluate whether the termination is lawful 
     and whether additional actions can be taken by the Secretary 
     to avoid the termination. The notice shall include a 
     statement that the owner and the Secretary may agree to a 
     renewal of the contract, thus avoiding the termination.
       ``(B) Review of notice by secretary.--The Secretary shall 
     review the notice, shall consider whether additional actions 
     can be taken by the Secretary to avoid the termination, and 
     shall ensure a proper adjustment of the contract rents for 
     the project in compliance with the requirements of subsection 
     (d) and subparagraph (C) of this subsection. The Secretary 
     shall issue a written finding of the legality of the 
     termination and the reasons for the termination, including 
     the actions considered or taken to avoid the termination. 
     Within 30 days after issuance of the findings, the owner 
     shall provide written notice to each tenant of the decision, 
     together with the written findings of the Secretary regarding 
     the termination. The Secretary and the owner shall complete 
     the actions under this paragraph not later than the 
     expiration of the 9-month period beginning upon the date that 
     the owner provides written notice of termination under 
     subparagraph (A).
       ``(3) Adjustment of contract rent.--If an owner provides 
     notice of proposed termination under paragraph (1)(A) or 
     (2)(A) and the contract rent is less than the maximum monthly 
     rent for units assisted under this section, the Secretary 
     shall adjust the contract rent based on the maximum monthly 
     rent for units assisted under this section and the value of 
     the low-income housing.
       ``(4) Notice of rent increases.--Each assistance contract 
     for assistance under this section shall require the owner to 
     notify tenants at least 90 days before the expiration of the 
     contract of any rent increase which may occur as a result of 
     the expiration of such contract.
       ``(5) Definition of termination.--For purposes of this 
     subsection, the term `termination' means the expiration of 
     the assistance contract or the refusal of the owner to renew 
     an assistance contract, which shall include the termination 
     of tenancy by an owner for business reasons.
       ``(k) Rental Assistance for Manufactured Housing.--
       ``(1) In general.--The Secretary may enter into contracts 
     to make assistance payments under this subsection to assist 
     low-income families by making rental assistance payments on 
     behalf of any such family that utilizes a manufactured home 
     as its principal place of residence. In carrying out this 
     subsection, the Secretary may--
       ``(A) enter into annual contributions contracts with public 
     housing agencies pursuant to which such agencies may enter 
     into assistance contracts to make such assistance payments to 
     the owners of such real property, if such owners agree to 
     make good faith efforts to ensure that such property complies 
     with local health and safety standards for water and sewage 
     systems; or
       ``(B) enter into such contracts directly with the owners of 
     such real property, if such owners agree to make good faith 
     efforts to ensure that such property complies with local 
     health and safety standards for water and sewage systems.
       ``(2) Use of assistance.--Rental assistance payments under 
     this subsection may be made with respect to the rental of the 
     real property on which is located a manufactured home that is 
     owned by a low-income family or with respect to the rental by 
     such a family of a manufactured home and the real property on 
     which it is located.
       ``(3) Assistance for rental of manufactured home site.--
       ``(A) Maximum monthly rent.--A contract entered into 
     pursuant to this paragraph shall establish the maximum 
     monthly rent (including maintenance and management charges) 
     that the owner is entitled to receive for the space on which 
     a manufactured home is located and with respect to which 
     assistance payments are to be made. The maximum monthly rent 
     shall not exceed an amount approved or established by the 
     Secretary.
       ``(B) Amount of monthly assistance payment.--The amount of 
     any monthly assistance payment with respect to any family 
     that rents real property that is assisted under this 
     paragraph, and on which is located a manufactured home that 
     is owned by such family shall be the difference between the 
     rent the family is required to pay under section 3(a) and the 
     sum of--
       ``(i) the monthly payment made by such family to amortize 
     the cost of purchasing the manufactured home;
       ``(ii) the monthly utility payments made by such family, 
     subject to reasonable limitations prescribed by the 
     Secretary; and
       ``(iii) the maximum monthly rent permitted with respect to 
     the real property which is rented by such family for the 
     purpose of locating its manufactured home;
     except that in no case may such assistance exceed the total 
     amount of such maximum monthly rent.
       ``(4) Assistance for rental of manufactured home and 
     site.--
       ``(A) Maximum monthly rent.--Contracts entered into 
     pursuant to this paragraph shall establish the maximum 
     monthly rent permitted with respect to the manufactured home 
     and the real property on which it is located and with respect 
     to which assistance payments are to be made. The maximum 
     monthly rent shall not exceed an amount approved or 
     established by the Secretary.
       ``(B) Amount of monthly assistance payment.--The amount of 
     any monthly assistance payment with respect to any family 
     that rents a manufactured home and the real property on which 
     it is located and that is assisted under this paragraph shall 
     be the difference between the rent the family is required to 
     pay under section 3(a) and the sum of--
       ``(i) the monthly utility payments made by such family, 
     subject to reasonable limitations prescribed by the 
     Secretary; and
       ``(ii) the maximum monthly rent permitted with respect to 
     the manufactured home and real property on which it is 
     located.
       ``(5) Adjustment of maximum monthly rents.--The provisions 
     of paragraphs (3) through (7) of subsection (d) shall apply 
     to the adjustments of maximum monthly rents under this 
     subsection.
       ``(6) Contract term.--Each contract entered into under the 
     subsection shall be for a term of not less than one month and 
     not more than 180 months; except that in any case in which 
     the manufactured home park is substantially rehabilitated or 
     newly constructed, such term may not be less than 240 months, 
     nor more than the maximum term for a manufactured home loan 
     permitted under section 2(b) of the National Housing Act.
       ``(7) Applicability.--The Secretary may carry out this 
     subsection without regard to whether the manufactured home 
     park is existing, substantially rehabilitated, or newly 
     constructed.
       ``(8) Limitation on substantially rehabilitated and newly 
     constructed manufactured home parks.--In the case of any 
     substantially rehabilitated or newly constructed manufactured 
     home park containing spaces with respect to which assistance 
     is made under this subsection, the principal amount of the 
     mortgage attributable to the rental spaces within the park 
     may not exceed an amount established by the Secretary which 
     is equal to or less than the limitation for manufactured home 
     parks described in section 207(c)(3) of the National Housing 
     Act, and the Secretary may increase such limitation in high 
     cost areas in the manner described in such section.
       ``(9) Other requirements.--The Secretary may prescribe 
     other terms and conditions necessary for the purpose of 
     carrying out this subsection and that are consistent with the 
     purposes of this subsection.
       ``(l) Single Room Occupancy Facilities.--
       ``(1) Authority.--In making assistance available under this 
     section and assistance under section 441 and part V of 
     subtitle F of title IV of the Stewart B. McKinney Homeless 
     Assistance Act, the Secretary may provide assistance with 
     respect to residential properties in which some or all of the 
     dwelling units do not contain bathroom or kitchen facilities, 
     if the unit of general local government in which the property 
     is located and the local public housing agency certify to the 
     Secretary that the property complies with local health and 
     safety standards.
       ``(2) Waiver of limitations on assistance for single 
     persons.--The Secretary may waive, in appropriate cases, the 
     limitation and preference in section 3(b)(3)(A) with respect 
     to the assistance made available under this subsection.
       ``(m) Housing for Elderly and Disabled Families.--
       ``(1) Shared housing.--To assist elderly families and 
     disabled families (as defined in section 3(b)) who elect to 
     live in a shared housing arrangement in which they benefit as 
     a result of sharing the facilities of a dwelling with others 
     in a manner that effectively and efficiently meets their 
     housing needs and thereby reduces their costs of housing, the 
     Secretary shall permit assistance provided under this section 
     to be used by such families in such arrangements. In carrying 
     out this subsection, the Secretary shall issue minimum 
     habitability standards for the purpose of ensuring decent, 
     safe, and sanitary housing for such families while taking 
     into account the special circumstances of shared housing.
       ``(2) Priority for nonelderly disabled families.--In 
     allocating assistance under this section, a public housing 
     agency that serves more than one unit of general local 
     government may, at the discretion of the agency, give 
     priority to disabled families that are not elderly families.
       ``(3) Authority to provide preferences for the elderly and 
     reserve units for the disabled.--Notwithstanding subsection 
     (h)(2) or (3), an owner of a covered section 8 housing 
     project (as such term is defined in section 659 of the 
     Housing and Community Development Act of 1992) may give 
     preference for occupancy of dwelling units in the project, 
     and reserve units for occupancy, in accordance with subtitle 
     D of title VI of the Housing and Community Development Act of 
     1992.
       ``(n) Administrative Fees.--
       ``(1) Basic fee for tenant-based rental program.--The 
     Secretary shall establish a fee for the costs incurred by a 
     public housing agency in administering the program for rental 
     assistance under this section, which shall be, together with 
     other fees authorized under this subsection, included in any 
     amounts provided to the public housing agency under the 
     annual contributions contract for the agency. The amount of 
     the fee for each month for which a dwelling unit is covered 
     by an assistance contract shall be 8.2 percent of the fair 
     market rental established under subsection (e) for a 2-
     bedroom existing rental dwelling unit in the market area of 
     the public housing agency. The Secretary may increase the fee 
     if necessary to reflect the higher costs of administering 
     small programs and programs operating over large geographic 
     areas.
       ``(2) Other fees.--The Secretary shall also establish 
     reasonable fees (as determined by the Secretary) for--
       ``(A) the costs of preliminary expenses that a public 
     housing agency documents it has incurred in connection with 
     new allocations of assistance under the program for rental 
     assistance under this section, which shall not exceed $275 
     per unit assisted;
       ``(B) the costs incurred in assisting families who 
     experience difficulty (as determined by the Secretary) in 
     obtaining appropriate housing under the program; and
       ``(C) extraordinary costs approved by the Secretary.
       ``(3) Budget compliance.--The Secretary may establish or 
     increase a fee in accordance with this subsection only to 
     such extent or in such amounts as are provided in 
     appropriation Acts.
       ``(4) Fees for 1995 and 1996.--Notwithstanding any other 
     provision of this subsection, the basic fee for the costs 
     incurred by a public housing agency in administering the 
     program for rental assistance under this section during 
     fiscal years 1995 and 1996 shall be equal to the fee 
     determined for fiscal year 1994 under section 11(a) of the 
     HUD Demonstration Act of 1993.
       ``(o) Portability of Assistance.--
       ``(1) Authority.--Except as provided in paragraphs (3) and 
     (4), any family on behalf of whom is provided tenant-based 
     rental assistance under this section and who moves to an 
     eligible dwelling unit located within the same State, or the 
     same or a contiguous metropolitan statistical area, as the 
     metropolitan statistical area within which is located the 
     area of jurisdiction of the public housing agency approving 
     the assistance for the family, may use such assistance to 
     rent such eligible dwelling unit.
       ``(2) Administration.--The public housing agency having 
     authority with respect to the dwelling unit to which a family 
     moves under this subsection shall have the responsibility of 
     carrying out the provisions of this section with respect to 
     the family. If no public housing agency has authority with 
     respect to the dwelling unit to which a family moves under 
     this subsection, the public housing agency approving the 
     assistance shall have such responsibility.
       ``(3) Local option to ensure minimum area residency.--At 
     the discretion of a public housing agency, the agency may 
     provide that a family may use tenant-based rental assistance 
     under this section to rent an eligible dwelling unit that is 
     not located within the area of jurisdiction of the agency 
     approving the assistance only if, before such use, the family 
     has rented and occupied an eligible dwelling unit within such 
     original jurisdiction for not less than 12 consecutive months 
     using assistance provided by such agency.
       ``(4) Prohibition of portability in cases of lease 
     violation.--A family may not use tenant-based rental 
     assistance as provided in paragraph (1) if the family has 
     moved from a dwelling unit in violation of the lease for the 
     dwelling unit.
       ``(5) Allocations due to portability.--In determining the 
     amount of rental assistance provided under an annual 
     contributions contract for any fiscal year, the Secretary 
     shall consider any reduction in the number of resident 
     families incurred by a public housing agency in the preceding 
     fiscal year as a result of the provisions of this subsection.
       ``(6) Provision of rental assistance for portability 
     purposes.--
       ``(A) Amount.--To the extent amounts for assistance under 
     this section that are reserved under section 213(d)(4) of the 
     Housing and Community Development Act of 1974 are available 
     in a fiscal year, the Secretary shall provide rental 
     assistance under this section in accordance with this 
     paragraph.
       ``(B) Use.--Amounts provided for use under this paragraph 
     shall be used only to provide a public housing agency with 
     additional amounts (as determined under subparagraph (C)) to 
     provide assistance for families on behalf of whom assistance 
     is provided under this section by another public housing 
     agency and who move into an eligible dwelling unit located 
     within the area of jurisdiction of the agency to receive 
     assistance under this paragraph.
       ``(C) Requirement.--Amounts provided for use under this 
     paragraph may be made available to a public housing agency in 
     a fiscal year only if, during such fiscal year, the agency 
     has provided assistance pursuant to the first sentence of 
     paragraph (2) on behalf of families who have moved into 
     eligible dwelling units located within the area of 
     jurisdiction of the agency in an amount not less than the 
     lesser of (i) 5 percent of total amount received by the 
     agency for assistance under this section for the fiscal year, 
     or (ii) the amount necessary to assist 25 percent of average 
     annual number of families previously assisted by the agency 
     who relinquish such assistance in a year (based on the 
     preceding 3 calendar years).
       ``(p) Prohibition of Discrimination.--In selecting families 
     for the provision of assistance under this section, a public 
     housing agency may not exclude or penalize a family solely 
     because the family resides in a public housing project.
       ``(q) Special Uses of Rental Assistance.--
       ``(1) Assistance for residents of rehabilitated projects.--
     In the case of low-income families living in rental projects 
     rehabilitated under section 17 of this Act or section 533 of 
     the Housing Act of 1949 before rehabilitation--
       ``(A) tenant-based rental assistance under this section 
     shall be provided for families who are required to move out 
     of their dwelling units because of the physical 
     rehabilitation activities or because of overcrowding;
       ``(B) at the discretion of each public housing agency, 
     tenant-based rental assistance under this section may be 
     provided for families who would have to pay more than 30 
     percent of their adjusted income for rent after 
     rehabilitation whether they choose to remain in, or to move 
     from, the project; and
       ``(C) the Secretary shall allocate tenant-based rental 
     assistance provided under this section to ensure that 
     sufficient resources are available to address the physical or 
     economic displacement, or potential economic displacement, of 
     existing tenants pursuant to subparagraphs (A) and (B).
       ``(2) Loan management assistance.--
       ``(A) In general.--The Secretary may provide assistance 
     under this section through a loan management program to 
     assist financially troubled multifamily residential housing 
     projects (i) subject to mortgages that are insured under the 
     National Housing Act or mortgages that have been assigned to 
     the Secretary, (ii) that were held by the Secretary and have 
     been sold, and (iii) that were assisted under section 202 of 
     the Housing Act of 1959.
       ``(B) Eligibility.--The eligibility of a multifamily 
     residential project for loan management assistance under this 
     paragraph shall be determined without regard to whether the 
     project is subsidized or unsubsidized.
       ``(C) Extension of contract.--The Secretary shall extend 
     any expiring contract entered into under this section for 
     loan management assistance or execute a new contract for 
     project-based loan management assistance, if the owner agrees 
     to continue providing housing for low-income families during 
     the term of the contract.
       ``(3) Assistance for family unification.--
       ``(A) In general.--The Secretary may provide assistance 
     under this section to be used only in connection with tenant-
     based assistance under this section on behalf of any family 
     (i) who is otherwise eligible for such assistance, and (ii) 
     who the public child welfare agency for the jurisdiction has 
     certified is a family for whom the lack of adequate housing 
     is a primary factor in the imminent placement of the family's 
     child or children in out-of-home care or the delayed 
     discharge of a child or children to the family from out-of-
     home care.
       ``(B) Allocation.--Any amounts made available under this 
     paragraph shall be allocated by the Secretary through a 
     national competition among applicants based on demonstrated 
     need for assistance under this paragraph. To be considered 
     for assistance, an applicant shall submit to the Secretary a 
     written proposal containing a report from the public child 
     welfare agency serving the jurisdiction of the applicant that 
     describes how a lack of adequate housing in the jurisdiction 
     is resulting in the initial or prolonged separation of 
     children from their families, and how the applicant will 
     coordinate with the public child welfare agency to identify 
     eligible families and provide the families with assistance 
     under this paragraph.
       ``(C) Definitions.--For purposes of this paragraph:
       ``(i) Applicant.--The term `applicant' means a public 
     housing agency.
       ``(ii) Public child welfare agency.--The term `public child 
     welfare agency' means the public agency responsible under 
     applicable State law for determining that a child is at 
     imminent risk of placement in out-of-home care or that a 
     child in out-of-home care under the supervision of the public 
     agency may be returned to his or her family.
       ``(4) Neighborhood crime fighters assistance.--
       ``(A) Assistance.--To the extent amounts for assistance 
     under this section are reserved under section 213(d)(4)(A) of 
     the Housing and Community Development Act of 1974 for use 
     under this paragraph, the Secretary may provide such amounts 
     to any public housing agency approved under subparagraph (C) 
     to make assistance payments under this paragraph on behalf of 
     any family described under subparagraph (B) for the rental of 
     a dwelling unit for the family that, in the determination of 
     the public housing agency (after consultation with law 
     enforcement agency concerned) provides for the protection of 
     the family.
       ``(B) Eligible families.--A family referred to in 
     subparagraph (A) shall be any family that--
       ``(i) contains a member that has provided information to 
     any Federal, State, or local law enforcement agency that such 
     law enforcement agency determines substantially contributes 
     to the arrest, criminal prosecution, or conviction of any 
     person for any criminal activity in or near the area or 
     neighborhood in which the person providing the information 
     resides;
       ``(ii) is likely, in the determination of such law 
     enforcement agency, to be subject to a crime of violence 
     directed at the family on account of providing the 
     information referred to in clause (i);
       ``(iii) is legally residing, at the time such information 
     is provided to the law enforcement agency, in a dwelling unit 
     in a public housing project administered by a public housing 
     agency meeting the requirements of subparagraph (C) or in a 
     dwelling unit assisted under this section by such a public 
     housing agency; and
       ``(iv) is not protected or assisted, or to be protected or 
     assisted, under chapter 224 of title 18, United States Code.
       ``(C) Eligible pha's.--The Secretary may provide amounts 
     reserved for use under this paragraph only to public housing 
     agencies approved by the Secretary under this subparagraph. 
     The Secretary may approve only agencies that the Secretary 
     determines have--
       ``(i) established sufficient cooperation with local law 
     enforcement agencies to make determinations to provide 
     assistance under this paragraph; and
       ``(ii) coordinated with local law enforcement agencies to 
     promptly inform the public housing agency and the Secretary 
     of any determination that assistance under this paragraph is 
     appropriate for a family, except that such coordination shall 
     be subject to the procedures established under subparagraph 
     (F)(iii) to ensure confidentiality.
       ``(D) Guidelines.--
       ``(i) Determination of need and coordination.--The 
     Secretary shall establish guidelines jointly with the 
     Attorney General that--

       ``(I) describe the types of situations under clauses (i) 
     and (ii) of subparagraph (B) in which assistance may be 
     provided under this paragraph, which shall include situations 
     in which the information referred to in subparagraph (B)(i) 
     is information regarding any crime that is detrimental to the 
     health, safety, peace, or security of the area or 
     neighborhood in which the family providing the information 
     resides; and
       ``(II) describe elements of sufficient cooperation between 
     public housing agencies and law enforcement agencies for 
     purposes of subparagraph (C)(i).

       ``(ii) Procedures.--The Secretary shall establish 
     procedures for public housing agencies approved under 
     subparagraph (C)--

       ``(I) to apply for, obtain, and administer amounts reserved 
     for providing assistance under this paragraph on behalf of 
     families eligible under subparagraph (B); and
       ``(II) to provide for the termination of the tenancy of any 
     family assisted under this paragraph from the dwelling unit 
     in which the family is residing so that such assistance may 
     be utilized.

       ``(E) PHA actions.--Each public housing agency approved by 
     the Secretary under subparagraph (C) shall--
       ``(i) periodically notify Federal, State, and local law 
     enforcement agencies in the area of jurisdiction of the 
     public housing agency of the availability of assistance under 
     this paragraph;
       ``(ii) take such actions as may be appropriate to inform 
     residents of public housing projects administered by the 
     agency and dwelling units assisted under this section by the 
     agency of the availability of such assistance; and
       ``(iii) coordinate with such law enforcement agencies to 
     promptly inform the public housing agency and the Secretary 
     of any determination that assistance under this paragraph is 
     appropriate for a family, except that such coordination shall 
     be subject to the procedures established under subparagraph 
     (F)(iii) to ensure confidentiality.
       ``(F) Notice and confidentiality.--The Secretary shall--
       ``(i) periodically notify public housing agencies of the 
     availability of assistance under this paragraph;
       ``(ii) encourage public housing agencies to cooperate and 
     coordinate with law enforcement agencies to encourage 
     residents of public housing projects and dwelling units 
     assisted under this section to provide information to law 
     enforcement agencies regarding criminal activity; and
       ``(iii) develop and implement procedures to ensure the 
     confidentiality of the identity and new location of any 
     family assisted under this paragraph.
       ``(G) Other assistance.--A public housing agency that 
     provides assistance under subparagraph (A) for a family and 
     the law enforcement agency involved shall ensure that the 
     family is provided access to other assistance and services 
     appropriate to ensure that the relocation of the family to 
     the dwelling unit assisted under subparagraph (A) and the 
     neighborhood of such dwelling unit occurs with the minimum 
     possible amount of disruption to the life of the family.
       ``(H) Liability.--The United States, and its officers and 
     employees, shall not be subject to any civil liability on 
     account of any decision to provide or not to provide 
     protection under this paragraph.
       ``(r) Renewal of Expiring Contracts.--
       ``(1) 5-year plan.--Not later than 30 days after the 
     beginning of each fiscal year, the Secretary shall publish in 
     the Federal Register a plan for reducing, to the extent 
     feasible, year-to-year fluctuations in the levels of budget 
     authority that will be required over the succeeding 5-year 
     period to renew expiring assistance contracts entered into 
     under this section after the enactment of the Housing and 
     Community Development Act of 1974. To the extent necessary to 
     carry out such plan and to the extent approved in 
     appropriations Acts, the Secretary is authorized to enter 
     into annual contributions contracts with terms of less than 
     60 months.
       ``(2) New construction and substantial rehabilitation 
     projects.--Subject only to the availability of budget 
     authority to carry out this paragraph and to the absence of 
     owners agreeing to enter into new contracts, the Secretary 
     shall enter into new contracts under subtitle D of title I of 
     the Housing and Community Development Act of 1994 to provide 
     project-based assistance for qualified housing (as such term 
     is defined in section 163 of such subtitle) to owners of such 
     housing.
       ``(s) General Provisions.--
       ``(1) Pledging assistance contracts as security.--An owner 
     may pledge, or offer as security for any loan or obligation, 
     an assistance contract entered into pursuant to this section, 
     but only if such security is in connection with a project 
     constructed or rehabilitated pursuant to authority under this 
     section and the terms of the financing or any refinancing 
     have been approved by the Secretary.
       ``(2) Housing counseling for rental choice.--Each public 
     housing agency that provides rental housing assistance under 
     this section on behalf of low-income families shall notify 
     such assisted families of the availability of any entity in 
     the jurisdiction of the agency providing rental housing 
     counseling under section 106(a)(4) of the Housing and Urban 
     Development Act of 1968.
       ``(t) Homeownership Option.--A public housing agency 
     providing assistance under this section may, at the option of 
     the agency, provide assistance for homeownership under this 
     subsection as follows:
       ``(1) Use of assistance for homeownership.--A family 
     receiving tenant-based assistance under this section may 
     receive assistance for occupancy of a dwelling owned by one 
     or more members of the family if the family--
       ``(A) is a first-time homeowner;
       ``(B)(i) participates in the family self-sufficiency 
     program under section 23 of the public housing agency 
     providing the assistance; or
       ``(ii) demonstrates that the family has income from 
     employment or other sources (other than public assistance), 
     as determined in accordance with requirements of the 
     Secretary, that is not less than twice the fair market rental 
     for the area established under subsection (e)(1) (or such 
     other amount as may be established by the Secretary);
       ``(C) except as provided by the Secretary, demonstrates at 
     the time the family initially receives tenant-based 
     assistance under this subsection that one or more adult 
     members of the family have achieved employment for the period 
     as the Secretary shall require;
       ``(D) participates in a homeownership and housing 
     counseling program provided by the agency; and
       ``(E) meets any other initial or continuing requirements 
     established by the public housing agency in accordance with 
     requirements established by the Secretary.
       ``(2) Monthly assistance payment.--
       ``(A) In general.--Notwithstanding any other provisions of 
     this section governing determination of the amount of 
     assistance payments under this section on behalf of a family, 
     the monthly assistance payment for any family assisted under 
     this subsection shall be the amount by which the fair market 
     rental for the area established under subsection (e)(1) 
     exceeds 30 percent of the family's monthly adjusted income; 
     except that the monthly assistance payment shall not exceed 
     the amount by which the monthly homeownership expenses, as 
     determined in accordance with requirements established by the 
     Secretary, exceeds 10 percent of the family's monthly income.
       ``(B) Exclusion of equity from income.--For purposes of 
     determining the monthly assistance payment for a family, the 
     Secretary shall not include in family income an amount 
     imputed from the equity of the family in a dwelling occupied 
     by the family with assistance under this subsection.
       ``(3) Recapture of certain amounts.--Upon sale of the 
     dwelling by the family, the Secretary shall recapture from 
     any net proceeds the amount of additional assistance (as 
     determined in accordance with requirements established by the 
     Secretary) paid to or on behalf of the eligible family as a 
     result of paragraph (2)(B).
       ``(4) Downpayment requirement.--Each public housing agency 
     providing assistance under this subsection shall ensure that 
     each family assisted shall provide from its own resources not 
     less than 80 percent of any downpayment in connection with a 
     loan made for the purchase of a dwelling. Such resources may 
     include amounts from any escrow account for the family 
     established under section 23(d). Not more than 20 percent of 
     the downpayment may be provided from other sources, such as 
     from nonprofit entities and programs of States and units of 
     general local government.
       ``(5) Ineligibility under other programs.--A family may not 
     receive assistance under this subsection during any period 
     when assistance is being provided for the family under other 
     Federal homeownership assistance programs, as determined by 
     the Secretary, which shall include assistance under the HOME 
     Investment Partnerships Act, the Homeownership and 
     Opportunity Through HOPE Act, title II of the Housing and 
     Community Development Act of 1987, and section 502 of the 
     Housing Act of 1949.
       ``(6) Inapplicability of certain provisions.--Assistance 
     under this subsection shall not be subject to the 
     requirements of the following provisions:
       ``(A) Subsection (h)(5) of this section.
       ``(B) Any other provisions of this section governing 
     maximum amounts payable to owners and amounts payable by 
     assisted families.
       ``(C) Any other provisions of this section concerning 
     contracts between public housing agencies and owners.
       ``(D) Any other provisions of this Act that are 
     inconsistent with the provisions of this subsection.
       ``(7) Reversion to rental status.--
       ``(A) FHA-insured mortgages.--If a family receiving 
     assistance under this subsection for occupancy of a dwelling 
     defaults under a mortgage for the dwelling insured by the 
     Secretary under the National Housing Act, the family may not 
     continue to receive rental assistance under this section 
     unless the family (i) transfers to the Secretary marketable 
     title to the dwelling, (ii) moves from the dwelling within 
     the period established or approved by the Secretary, and 
     (iii) agrees that any amounts the family is required to pay 
     to reimburse the escrow account under section 23(d)(3) may be 
     deducted by the public housing agency from the assistance 
     payment otherwise payable on behalf of the family.
       ``(B) Other mortgages.--If a family receiving assistance 
     under this subsection defaults under a mortgage not insured 
     under the National Housing Act, the family may not continue 
     to receive rental assistance under this section unless it 
     complies with requirements established by the Secretary.
       ``(C) All mortgages.--A family receiving assistance under 
     this subsection that defaults under a mortgage may not 
     receive assistance under this subsection for occupancy of 
     another dwelling owned by one or more members of the family.
       ``(8) Definition of first-time homeowner.--For purposes of 
     this subsection, the term `first-time homeowner' means--
       ``(A) a family, no member of which has had a present 
     ownership interest in a principal residence during the 3 
     years preceding the date on which the family initially 
     receives assistance for homeownership under this subsection; 
     and
       ``(B) any other family, as the Secretary may prescribe.
       ``(u) Definitions.--For purposes of this section:
       ``(1) Annual contributions contract.--The term `annual 
     contributions contract' means a contract under subsection (b) 
     between the Secretary and a public housing agency to provide 
     amounts for rental assistance payments under this section to 
     the public housing agency.
       ``(2) Assistance contract.--The term `assistance contract' 
     means a contract under subsection (c) between a public 
     housing agency (or the Secretary) and an owner to make rental 
     assistance payments under this section to the owner.
       ``(3) Debt service.--The term `debt service' means the 
     required payments for principal and interest made with 
     respect to a mortgage secured by housing assisted under this 
     Act.
       ``(4) Drug-related criminal activity.--The term `drug-
     related criminal activity' means the illegal manufacture, 
     sale, distribution, use, or possession with intent to 
     manufacture, sell, distribute, or use, of a controlled 
     substance (as such term is defined in section 102 of the 
     Controlled Substances Act).
       ``(5) Owner.--The term `owner' means any private person or 
     entity, including a cooperative, an agency of the Federal 
     Government, or a public housing agency, having the legal 
     right to lease or sublease dwelling units, and such term 
     shall include any principals, general partners, primary 
     shareholders, and other similar participants in any entity 
     owning a multifamily housing project (as such term is defined 
     in subsection (p)(3)), as well as the entity itself.
       ``(6) Participating jurisdiction.--The term `participating 
     jurisdiction' means a State or unit of general local 
     government designated by the Secretary to be a participating 
     jurisdiction under title II of the Cranston-Gonzalez National 
     Affordable Housing Act.
       ``(7) Project-based assistance.--The term `project-based 
     assistance' means rental assistance under this section that 
     is attached to a structure pursuant to subsection (i).
       ``(8) Rent.--The terms `rent' and `rental' include, with 
     respect to members of a cooperative, the charges under the 
     occupancy agreements between such members and the 
     cooperative.
       ``(9) Rental assistance.--The term `rental assistance' 
     means assistance provided under this section on behalf of 
     low-income families for the rental of a dwelling unit.
       ``(10) Tenant-based assistance.--The term `tenant-based 
     assistance' means rental assistance under this section that 
     is not project-based assistance.''.
       (b) Conforming Amendments.--
       (1) United states housing act of 1937.--The United States 
     Housing Act of 1937 is amended--
       (A) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking 
     ``(other than a family assisted under section 8(o) or (y) or 
     paying rent under section 8(c)(3)(B))'' and inserting 
     ``(other than a family assisted under section 8(t) or paying 
     rent under section 8(f)(2))'';
       (B) in section 5 (42 U.S.C. 1437c)--
       (i) in subsection (c)(7)(C), by striking ``section 
     8(b)(1)'' each place it appears and inserting ``section 8'';
       (ii) in subsection (j)(1)(B)(i), by striking ``section 
     8(o)(6)'' and inserting ``section 8''; and
       (iii) in subsection (j)(1)(D), by striking ``subsection (b) 
     or (o) of'';
       (C) in section 6(p)(1)(B) (42 U.S.C. 1437d(p)(1)(B)), by 
     striking ``holding certificates and vouchers'' and inserting 
     ``eligible and approved for assistance'';
       (D) in section 21(b)(3)--
       (i) by striking ``a certificate under section 8(b)(1) or a 
     housing voucher under section 8(o)'' and inserting ``tenant-
     based assistance under section 8''; and
       (ii) by striking ``such certificate'' and inserting ``such 
     assistance'';
       (E) in section 23--
       (i) in subsection (a), by striking ``assistance under the 
     certificate and voucher programs'' and inserting ``tenant-
     based assistance'';
       (ii) in subsection (b)--

       (I) in paragraph (1), by striking ``assistance under 
     subsection (b) or (o) of'' and inserting ``tenant-based 
     assistance under''; and
       (II) in paragraph (4), by striking ``Assistance under the 
     certificate or voucher programs'' and inserting ``Tenant-
     based assistance'';

       (iii) in subsection (c)(1), by striking ``assistance under 
     the certificate and voucher programs of'' and inserting 
     ``tenant-based assistance from'';
       (iv) in subsection (d)(3) (as added by section 185(b) of 
     the Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3747)), by striking ``section 8(y)'' and 
     inserting ``section 8(t)''; and
       (v) in subsection (h)(1)--

       (I) by striking ``section 8(q) for the costs incurred in 
     administering the provision of certificate and voucher'' and 
     inserting ``section 8(n) for the costs incurred in 
     administering the provision of tenant-based''; and
       (II) by striking ``section 8(q)(2)(A)(i)'' and inserting 
     ``section 8(n)(2)(A)''; and

       (G) in section 304(g)(3) (42 U.S.C. 1437aaa-3(g)(3)), by 
     striking ``section 8(b)(2) and section 8(o)(9)'' and 
     inserting ``section 8''.
       (2) Allocation of assisted housing funds.--Section 213 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     1439) is amended--
       (A) in subsection (d)--
       (i) in paragraph (1)(A)(ii), by striking ``section 
     8(b)(1)'' each place it appears and inserting ``section 8''; 
     and
       (ii) in paragraph (2), by striking ``section 8(d)'' and 
     inserting ``section 8(i)'';
       (B) in subsection (e), by striking ``section 8(b)(1)'' and 
     inserting ``section 8''.
       (3) Supportive housing for elderly families.--Section 
     801(d)(1)(B) of the Cranston-Gonzalez National Affordable 
     Housing Act (12 U.S.C. 1701q note) is amended by striking 
     ``section 8(c)(1)'' and inserting ``section 8(e)''.
       (4) Elderly independence.--Section 803 of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is 
     amended--
       (A) in subsection (a), by striking ``housing certificates 
     and vouchers'' and inserting ``assistance under section 8 of 
     the United States Housing Act of 1937''; and
       (B) in subsection (b)--
       (i) in the 1st sentence, by striking ``not more than 1,500 
     incremental vouchers and certificates under sections 8(b) and 
     8(o) of the United States Housing Act of 1937'' and inserting 
     ``incremental assistance under section 8 of the United States 
     Housing Act of 1937 on behalf of not more than 1,500 frail 
     elderly persons'';
       (ii) in the 3rd sentence, by striking ``the housing 
     certificate or voucher program of the agency'' and inserting 
     ``the agency's program for assistance under such section 8''; 
     and
       (iii) in the last sentence, by striking ``sections 8(b) and 
     8(o)'' and inserting ``section 8''.
       (5) Revised congregate housing services.--Section 
     802(k)(6)(B) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8011(k)(6)(B)) is amended by striking 
     ``subsection (d)(2)'' and inserting ``subsection (i)''.
       (6) Housing for persons with aids.--Subtitle D of title 
     VIII of the Cranston-Gonzalez National Affordable Housing Act 
     is amended--
       (A) in section 859(a)(2) (42 U.S.C. 12908(a)(2)) by 
     striking ``section 8(p)'' each place it appears and inserting 
     ``section 8(m)(1)''; and
       (B) in section 860(a) (42 U.S.C. 12909(a)), by striking 
     ``section 8(n)'' and inserting ``section 8(l)''.
       (7) Mc kinney act.--Section 441(b) of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11401(b)) is 
     amended--
       (A) by striking ``section 8(n)'' and inserting ``section 
     8(l)''; and
       (B) by adding at the end the following new sentence: 
     ``Moderate rehabilitation under this section shall be carried 
     out in the manner provided under the provisions of section 
     8(e) of the United States Housing Act of 1937, as such 
     section was in effect (pursuant to section 289(b)(2) of the 
     Cranston-Gonzalez National Affordable Housing Act) 
     immediately before the enactment of the Housing and Community 
     Development Act of 1994.''.
       (8) Flexible subsidy program.--Section 201 of the Housing 
     and Community Development Amendments of 1978 (12 U.S.C. 
     1715z-1a) is amended--
       (A) in subsection (m)(2)(A), by striking ``section 
     8(b)(1)'' and inserting ``section 8''; and
       (B) in subsection (o), by striking ``section 8(v)'' and 
     inserting ``section 8(q)(2)''.
       (9) Hud-owned projects.--Section 203 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1701z-11) 
     is amended--
       (A) in subsection (e)(1)(D)--
       (i) in clause (i)(IV), by inserting before the semicolon 
     the following: ``, as such section was in effect (pursuant to 
     section 289(b)(2) of the Cranston-Gonzalez National 
     Affordable Housing Act) immediately before the enactment of 
     the Housing and Community Development Act of 1994''; and
       (ii) in clause (ii), by striking ``section 8(b)'' and 
     inserting ``section 8'';
       (B) in subsection (g)(2), by striking ``, 8(d)(1)(A)(i), 
     and 8(o)(3)(B)'' and inserting `` and 8(h)(2)(iii)''; and
       (C) in subsection (h)(2), by striking ``section 8(c)'' and 
     inserting ``section 8(e)''.
       (10) Housing access.--Section 204 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1701z-12) 
     is amended by striking ``to a holder of a certificate of 
     eligibility under that section solely because of such 
     prospective tenant's status as a certificate holder'' and 
     inserting ``to a family that is approved for assistance under 
     such section solely because of such the family's status as 
     assisted under such section''.
       (11) ELIHPA of 1987.--The references in sections 
     225(b)(3)(D), 226(a)(3), and 228(a)(4) of the Emergency Low 
     Income Housing Preservation Act of 1987 (as in effect 
     immediately before the enactment of the Cranston-Gonzalez 
     National Affordable Housing Act) to section 8(b) of the 
     United States Housing Act of 1937 shall be considered to 
     refer to section 8(e) of the United States Housing Act of 
     1937 (as amended by the Housing and Community Development Act 
     of 1994).
       (12) LIHPRHA of 1990.--Title II of the Housing and 
     Community Development Act of 1987 (42 U.S.C. 4101 et seq.) is 
     amended--
       (A) in section 215(a)--
       (i) in paragraph (1), by striking ``section 8(c)'' and 
     inserting ``section 8(e)''; and
       (ii) in paragraph (2), by striking ``section 8(c)(1)'' and 
     inserting ``section 8(e)(1)'';
       (B) in section 220(d)(3)(B), by striking ``section 8(c)'' 
     and inserting ``section 8(e)'';
       (C) in section 222--
       (i) in subsection (a)(2)(D), by striking ``section 8(c)'' 
     and inserting ``section 8(e)''; and
       (ii) in subsection (d)(2)(C)(i), by striking ``sections 
     8(b) and 8(o) of the United States Housing Act of 1937 (other 
     than project-based assistance attached to the housing)'' and 
     inserting ``tenant-based assistance under section 8 of the 
     United States Housing Act of 1937'';
       (D) in section 223(a), by striking ``the certificate and 
     voucher programs under sections 8(b) and 8(o)'' and inserting 
     ``section 8''; and
       (E) in section 226(b)(6)(B), by striking ``sections 
     8(d)(1)(A) and 8(o)(3)'' and inserting ``section 8(h)(2)''.
       (13) Disaster relief.--
       (A) Tenant-based assistance.--Section 931 of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 1437c 
     note) is amended--
       (i) in the section heading, by striking ``certificates and 
     vouchers'' and inserting ``tenant-based assistance''; and
       (ii) by striking ``assistance under the certificate and 
     voucher programs under sections 8 (b) and (o)'' and inserting 
     ``tenant-based assistance under section 8''.
       (B) Moderate rehabilitation assistance.--Section 932 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437c note) is amended by inserting after ``such Act'' the 
     following: ``, as such section was in effect (pursuant to 
     section 289(b)(2) of the Cranston-Gonzalez National 
     Affordable Housing Act) immediately before the enactment of 
     the Housing and Community Development Act of 1994,''.
       (14) Public housing mincs demonstration.--Section 
     522(f)(6)(B) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437f note) is amended--
       (A) by striking ``assistance under section 8(b)'' and 
     inserting ``tenant-based assistance under section 8''; and
       (B) by striking ``section 8(d)(1)(A)(i)'' and inserting 
     ``section 8(h)(2)''.
       (15) Public housing new construction income eligibility.--
     Section 545(c)(2) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437f note) is amended by 
     striking ``section 8(d)(1)(A)(ii)'' and inserting ``section 
     8(h)(3)''.
       (16) Section 8 excessive rent burden data.--Section 550(b) 
     of the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437f note) is amended--
       (A) in paragraph (1), by striking ``under the certificate 
     and voucher programs established'' and inserting ``with 
     tenant-based assistance'';
       (B) in the first sentence of paragraph (2), by striking ``, 
     for each'' and all that follows through ``participating in 
     the program'' and inserting ``the percentage of families 
     receiving tenant-based assistance''; and
       (C) in paragraph (3), by striking ``assistance under the 
     certicate or voucher program'' and inserting ``tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937''.
       (17) Rural housing preservation grants.--Section 533(a) of 
     the Housing Act of 1949 (42 U.S.C. 1490m) is amended by 
     striking ``assistance payments as provided by section 8(o)'' 
     and inserting ``tenant-based assistance payments under 
     section 8 (including assistance in accordance with section 
     8(f)(2)''.
       (18) Federally assisted housing occupancy standards.--
     Section 643(b)(2) of the Housing and Community Development 
     Act of 1992 (42 U.S.C. 13603(b)(2)) is amended by striking 
     ``section 8(d)(1)'' and inserting ``section 8(h)''.
       (19) Reservation of section 8 units for disabled 
     families.--Section 655 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 13615) is amended by 
     striking ``section 8(d)(1)(A)(i) of the United States Housing 
     Act of 1937 and the first sentence of section 8(o)(3)(B) of 
     such Act'' and inserting ``section 8(h)(2) of the United 
     States Housing Act of 1937''.
       (20) GAO report on lead exposure.--Section 1056(a) of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 
     4855) is amended by striking ``subsections (b) and (o) of''.
       (21) National housing act.--The National Housing Act is 
     amended--
       (A) in section 203(v) (12 U.S.C. 1709(v)), as added by 
     section 185(c)(1)(B) of the Housing and Community Development 
     Act of 1992, by striking ``section 8(y)'' and inserting 
     ``section 8(t)''; and
       (B) in section 236(f)(5)(A)(i) (12 U.S.C. 1715z-
     1(f)(5)(A)(i)), by striking ``section 8(c)'' and inserting 
     ``section 8(e)''.
       (c) Applicability.--The amendments under this section are 
     made on the date of the enactment of this Act, but shall 
     apply on and after October 1, 1995, only to assistance under 
     section 8 of the United States Housing Act of 1937 provided 
     pursuant to an assistance contract entered into or renewed on 
     or after such date. Any such assistance provided pursuant to 
     an assistance contract entered into before such date shall be 
     subject to the provisions of such section 8 as in effect 
     immediately before the enactment of this Act or otherwise 
     applicable to such assistance.
       (d) Transition.--
       (1) Conversion.--The Secretary may provide for the 
     conversion of assistance under the certificate and voucher 
     programs, as such programs existed before the date of the 
     enactment of this Act, to the certificate program established 
     under the amendments under this section.
       (2) Continuation of assistance.--The Secretary of Housing 
     and Urban Development shall take any action necessary to 
     ensure that the provision of assistance under section 8 of 
     the United States Housing Act of 1937 to families receiving 
     assistance under such section on the date of the enactment of 
     this Act is not interrupted because of the amendments under 
     this section.
       (e) Regulations.--The Secretary shall implement the 
     amendments under this section by regulation issued after 
     notice and opportunity for public comment.

     SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST MORTGAGES FOR 
                   SECTION 8 PROJECTS.

       Section 8 of the United States Housing Act of 1937 (42 
     U.S.C. 1437f), as amended by the preceding provisions of this 
     Act, is further amended by adding at the end the following 
     new subsection:
       ``(v) Refinancing Incentive.--For a project that (1) was 
     constructed, substantially rehabilitated, or moderately 
     rehabilitated under this section, (2) is subject to an 
     assistance contract under this section, and (3) was subject 
     to a mortgage that has been refinanced under section 
     223(a)(7) or section 223(f) of the National Housing Act to 
     lower the periodic debt service payments of the owner, the 
     Secretary may pay the owner the amount of the up front costs 
     to the owner of refinancing. The Secretary may make such 
     payments only from savings in the amount of assistance 
     payments, as determined by the Secretary on a project-by-
     project basis and after application of amounts in accordance 
     with section 1012 of the Stewart B. McKinney Homeless 
     Assistance Amendments Act of 1988, that result from the 
     refinancing during the first year after the refinancing.''.

     SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS RESIDUAL 
                   RECEIPTS.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall carry out a demonstration program, in 
     conjunction with State housing agencies, under which the 
     Secretary, at the request of owners of qualified projects, 
     makes amounts in the account for residual receipts or excess 
     amounts for the qualified projects available for use under 
     model programs to expand the supply of affordable housing.
       (b) Limitation.--The Secretary may not make any amounts 
     available for use under the demonstration program under this 
     section from the account of a qualified project for residual 
     receipts or excess amounts unless the amount remaining in the 
     account, together with replacement reserves for the project, 
     is sufficient (in the determination of the Secretary) to 
     maintain, manage, and preserve the project as affordable 
     housing.
       (c) Qualified Projects.--For purposes of this section, the 
     term ``qualified project'' means a housing project--
       (1) assisted with project-based assistance under section 8 
     of the United States Housing Act of 1937; or
       (2) constructed or substantially rehabilitated pursuant to 
     assistance provided under section 8(b)(2) of the United 
     States Housing Act of 1937, as such section existed before 
     November 30, 1983.

     SEC. 145. TREATMENT OF CERTAIN PROJECTS.

       (a) Conversion of Section 23 Project.--From amounts 
     available for the conversion of the Tamaqua Highrise project 
     in the Borough of Tamaqua, Pennsylvania, from a leased 
     housing contract under section 23 of the United States 
     Housing Act of 1937 to tenant-based assistance under section 
     8 of such Act, the Secretary of Housing and Urban Development 
     shall, to the extent such amounts are made available in 
     appropriation Acts, enter into an obligation for the 
     conversion of the project to a project-based rental 
     assistance contract under section 8 of such Act, 
     notwithstanding the requirement for rehabilitation or the 
     percentage limitations under section 8(d)(2) of such Act (as 
     in effect before the date of the enactment of this Act) and 
     subparagraph (A) of section 8(i)(2) of such Act (as amended 
     by section 143 of this Act).
       (b) Compliance With Rehabilitation Requirement.--
     Rehabilitation activities undertaken by E.T.C. Enterprises in 
     connection with 16 scattered-site dwelling units that were 
     rehabilitated to provide housing for low-income families and 
     are located in Perth Amboy, New Jersey, are hereby deemed to 
     have been conducted pursuant to an agreement with the 
     Secretary of Housing and Urban Development under clause (ii) 
     of the third sentence of section 8(d)(2)(A) of the United 
     States Housing Act of 1937 (as in effect before the date of 
     the enactment of this Act) and subparagraph (A) of section 
     8(i)(2) of such Act (as amended by section 143 of this Act).

     SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF OWNERS AND 
                   LANDLORDS IN SECTION 8 RENTAL ASSISTANCE 
                   PROGRAM.

       The Secretary of Housing and Urban Development shall 
     conduct a study--
       (1) to determine the extent to which the requirements of 
     section 8(p)(2) of the United States Housing Act of 1937 (as 
     amended by this Act) and section 8(t) of such Act (as in 
     effect before the enactment of this Act) cause owners of 
     multifamily rental housing to abstain from entering into 
     contracts for housing assistance payments under such section; 
     and
       (2) to identify other factors causing owners of such 
     housing to abstain from entering into such contracts.
     In conducting the study, the Secretary shall consult a 
     significant number of owners in a wide range of areas. The 
     Secretary shall submit a report to the Congress describing 
     the results of the study not later than February 1, 1996.

     SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STANDARDS.

       The Secretary of Housing and Urban Development shall 
     conduct a study of the existing standards for housing quality 
     for dwelling units assisted under the program for rental 
     assistance under section 8 of the United States Housing Act 
     of 1937. The study shall determine--
       (1) whether the standards are effective in ensuring decent, 
     safe, and sanitary housing;
       (2) how, and the extent to which, the standards are 
     enforced; and
       (3) how the standards or the enforcement of the standards 
     may be improved.
       The Secretary shall submit a report to the Congress not 
     later than 2 years after the date of the enactment of this 
     Act describing the results of the study and containing any 
     recommendations of the Secretary to carry out paragraph (3).
      Subtitle D--Renewal of Expiring Contracts for Section 8 New 
          Construction and Substantial Rehabilitation Projects

     SEC. 151. FINDINGS AND PURPOSE.

       (a) Congressional Findings.--The Congress finds that--
       (1) housing built or substantially rehabilitated pursuant 
     to section 8 of the United States Housing Act of 1937 is an 
     important national resource that has provided decent, safe, 
     and affordable housing to hundreds of thousands of low-income 
     families who otherwise would not have obtained affordable 
     housing;
       (2) the Federal Government is the steward of this assisted 
     housing stock and has an affirmative obligation to preserve 
     it as housing for low-income families, consistent with 
     considerations of fairness to all interested parties, 
     including owners, residents, property managers, the community 
     in which the housing is located, and taxpayers;
       (3) because section 8(e)(1) of the United States Housing 
     Act of 1937 (as in effect prior to November 30, 1983) 
     provided, for the most part, that contracts to make 
     assistance payments to owners of newly constructed or 
     substantially rehabilitated housing financed with assistance 
     of a loan made by, or insured, guaranteed or intended for 
     purchase by the Federal Government, other than pursuant to 
     section 244 of the National Housing Act, could not exceed 20 
     years and because such housing was constructed or 
     substantially rehabilitated during the period from 1975 to 
     1985, a substantial number of contracts that provide for such 
     assistance will soon expire (with other housing constructed 
     or substantially rehabilitated pursuant to such section of 
     law supported through housing assistance contracts of longer 
     duration, which will expire at a later time);
       (4) failure to enter into new housing assistance contracts 
     under equitable and financially sound terms and conditions 
     will reduce the supply of decent, safe, and affordable 
     housing for low-income Americans, while the demonstrated need 
     for such housing remains great;
       (5) in order for the urban and rural population centers of 
     the United States to regain their viability, the housing 
     stock in such population centers must be preserved, which 
     includes preserving housing built or substantially 
     rehabilitated under section 8 of the United States Housing 
     Act of 1937;
       (6) assisted housing projects located in areas of relative 
     affluence can promote racial, social, and economic 
     integration, and such projects should be maintained as part 
     of the affordable housing inventory to the maximum extent 
     practicable;
       (7) the number of units of housing currently receiving 
     project-based section 8 assistance should not be reduced as a 
     result of the expiration of any current contracts; and
       (8) the number of households currently assisted by reason 
     of residence in housing projects receiving project-based 
     section 8 assistance should not be reduced as a result of the 
     expiration of any current contracts to provide project-based 
     assistance, though some of the specific families currently 
     living in such housing may either receive such assistance in 
     another location or become recipients of tenant-based 
     assistance under appropriate circumstances (with the 
     preference, as a matter of public policy, to the continued 
     assistance of such households through project-based 
     assistance).
       (b) Purpose.--It is the purpose of this subtitle to provide 
     for the preservation of affordable housing constructed or 
     substantially rehabilitated pursuant to section 8 of the 
     United States Housing Act of 1937, and to provide affordable 
     housing opportunities for at least the same number of 
     families as are provided such housing by reason of their 
     residence in housing projects receiving project-based 
     assistance under such section, in a manner that is 
     administratively efficient, cost-effective, and fair to all 
     interested parties, including owners, residents, property 
     managers and the communities in which the housing is located.

     SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTENTION TO 
                   RENEW.

       (a) Notice to Owner.--Not later than 27 months before the 
     date of expiration of an expiring contract (or, in the case 
     of a qualified project subject to an expiring contract for 
     which the date of expiration occurs less than 27 months after 
     the date of the enactment of this Act, not later than 6 
     months after the date of enactment of this Act), the 
     Secretary shall notify the owner of the qualified project, in 
     writing, that the owner has an affirmative obligation 
     pursuant to subsection (b).
       (b) Notice by Owner to Secretary.--Not later than 24 months 
     before the date of expiration of an expiring contract (or, in 
     the case of a qualified project subject to an expiring 
     contract for which the date of expiration occurs less than 27 
     months after the date of the enactment of this Act, not later 
     than 9 months after the date of enactment of this Act), the 
     owner of the qualified project shall simultaneously--
       (1) submit to the Secretary written notice stating whether 
     or not the owner intends to enter into a new contract 
     pursuant to this subtitle for project-based assistance for 
     the qualified project; and
       (2) submit a copy of the notice to the chief executive 
     officer of the State or unit of general local government for 
     the jurisdiction within which the project is located, any 
     mortgagee of the project, the tenants of the project 
     (including any resident council for the project), and such 
     other individuals or entities as the Secretary may require.
       (c) Submission of Proposal To Enter Into New Contract.--If 
     in the notice required by subsection (b) the owner indicates 
     an intention to enter into a new contract for assistance for 
     the qualified project, not later than 3 months after 
     submitting such notice to the Secretary, the owner shall 
     simultaneously--
       (1) submit to the Secretary a proposal specifying terms and 
     conditions for the new contract, which shall comply with the 
     requirements for new contracts under this subtitle; and
       (2) submit a copy of the notice to the chief executive 
     officer of the State or unit of general local government for 
     the jurisdiction within which the project is located, any 
     mortgagee of the project, the tenants of the project 
     (including any resident council for the project), and such 
     other individuals or entities as the Secretary may require.
       (d) Capital Needs Assessment.--
       (1) Requirement.--Within a reasonable period of time after 
     receiving a proposal under subsection (c) to enter into a new 
     contract for a qualified project, the Secretary shall conduct 
     a comprehensive assessment of the needs of the project to 
     determine the rehabilitation needs and replacement reserves 
     necessary to preserve the project during the ensuing 10-year 
     period.
       (2) Content.--The assessment shall obtain the same 
     information regarding the qualified project that is required 
     to be contained in a comprehensive needs assessment under 
     section 403 of the Housing and Community Development Act of 
     1992 for a covered multifamily housing property subject to 
     title IV of such Act, shall assess the management performance 
     for the project, and shall obtain any other information as 
     the Secretary considers appropriate for purposes of this 
     subtitle regarding the project, tenants, and market area in 
     which the project is located.
       (e) Tenant and Community Participation.--
       (1) Establishment of procedures.--The Secretary shall 
     establish procedures that provide an opportunity for tenants 
     of a qualified project (including any resident council) and 
     other affected parties to participate effectively in the 
     process established under this section and section 153 to 
     determine whether and under what terms and conditions a new 
     contract will be provided for the project or other assistance 
     will be made available.
       (2) Content of procedures.-- The procedures established 
     under this subsection shall include providing timely and 
     adequate written notice of the proposed decisions of the 
     owner and the Secretary regarding the qualified project, 
     timely access to all relevant information (not including 
     information determined to be proprietary under standards 
     established by the Secretary), an adequate period to analyze 
     such information and submit comments to the Secretary (which 
     the Secretary shall take into consideration in carrying out 
     this subtitle), and, if requested, arranging meetings with 
     representatives of the Secretary and the owner.
       (3) Applicability.--The procedures established under this 
     subsection shall provide for the participation of tenants of 
     a qualified project and other affected parties in at least 
     the following actions:
       (A) Physical inspection of the qualified property under 
     section 155(b) and determination of capital needs of a 
     property pursuant to subsection (d).
       (B) Any determination under section 154 regarding the owner 
     of the project.
       (C) Review of notice and any proposal submitted by the 
     owner under subsections (b) and (c) of this section.
       (D) Determination of the response of the Secretary under 
     section 153.
       (E) Determination of the terms of any new contract for the 
     project.
       (F) Establishing and carrying out any plan for sale of the 
     project under section 157(c)(1).
       (G) Establishing and carrying out of any plan to provide 
     assistance under subsection (d) or (f) of section 157.
       (4) Minimum period for tenant notification.--The Secretary 
     shall notify tenants of a qualified project of any agreement 
     to enter into a new contract for the project or of the 
     failure to enter into a new contract for the project, as the 
     case may be, not less than 12 months before the expiration of 
     expiring contract. If, in the case of a failure to enter into 
     a new contract for a qualified project, the Secretary fails 
     to comply with the requirement under the preceding sentence, 
     the Secretary shall (subject only to the availability of 
     budget authority) provide such additional assistance as may 
     be necessary to extend the contract for such 12-month period.

     SEC. 153. SECRETARY'S RESPONSE TO OWNER'S PROPOSAL.

       (a) Requirement.--Except in the case of an owner who 
     submits a notice under section 152(b) stating an intention 
     not to enter into a new contract and in the case of rejection 
     of an owner's proposal under subsection (c), not later than 
     90 days after an owner submits a proposal under section 
     152(c) for a qualified project (or not later than 30 days 
     after the expiration of the period under section 152(b), in 
     the case of an owner failing to provide notice under such 
     subsection), the Secretary shall take action under subsection 
     (b) to enter into a new contract.
       (b) Response to Owner's Proposal.--Subject only to the 
     availability of budget authority, the Secretary shall take 
     the following actions:
       (1) Status quo contracts.--In the case of a qualified 
     project for which the maximum monthly rents for units in the 
     project that are assisted under the expiring contract do not 
     (24 months before the date of the expiration of the contract) 
     exceed 110 percent of the fair market rentals for dwelling 
     units of the applicable sizes and types of dwelling units in 
     the market area in which the qualified housing is located and 
     a qualified project for which the owner agrees to reduce the 
     maximum monthly rents so that the rents do not exceed 110 
     percent of such fair market rentals--
       (A) if the owner's proposal under section 152(c) provides 
     for establishing maximum monthly rents under the contract for 
     dwelling units in the project pursuant to the procedure under 
     section 156(a) and otherwise complies with the requirements 
     of this subtitle, the Secretary shall agree to the owner's 
     proposal and shall enter into a new contract for the project; 
     and
       (B) if the owner's proposal under section 152(c) does not 
     provide for establishing maximum monthly rents under the 
     contract for dwelling units in the project pursuant to the 
     procedure under section 156(a) or otherwise fails to comply 
     with the requirements of this title, or the owner has failed 
     to submit a proposal, the Secretary shall make an offer to 
     enter into a new contract for the project (by modifying the 
     owner's proposal under section 152(c), if the owner has 
     submitted a proposal) and, if the owner accepts, the 
     Secretary shall enter into such a new contract for the 
     project.
     The Secretary may not offer or agree to enter into a new 
     contract for a qualified project, or enter into such a 
     contract, that establishes maximum monthly rents under the 
     contract for dwelling units in the project pursuant to the 
     procedure under section 156(a) unless the maximum monthly 
     rents under the expiring contract for the project meet the 
     requirements of the matter in this paragraph preceding 
     subparagraph (A).
       (2) Budget-based contracts.--In the case of a qualified 
     project for which the maximum monthly rents for units in the 
     project that are assisted under the expiring contract (24 
     months before the date of the expiration of the contract) 
     exceed 110 percent of the fair market rentals for dwelling 
     units of the applicable sizes and types of dwelling units in 
     the market area in which the qualified housing is located--
       (A) if the owner's proposal under section 152(c) provides 
     for establishing maximum monthly rents under the contract for 
     dwelling units in the project pursuant to the procedure under 
     section 156(b) and otherwise complies with the requirements 
     of this subtitle, the Secretary shall agree to the owner's 
     proposal under section 152(c) and shall enter into a new 
     contract for the project; and
       (B) if the owner's proposal under section 152(c) does not 
     provide for establishing maximum monthly rents under the 
     contract for dwelling units in the project pursuant to the 
     procedure under section 156(b) or otherwise fails to comply 
     with the requirements of this title, or the owner has failed 
     to submit a proposal, the Secretary shall make an offer to 
     enter into a new contract for the project (by modifying the 
     owner's proposal under section 152(c), if the owner has 
     submitted a proposal) and, if the owner accepts, the 
     Secretary shall enter into such a new contract for the 
     project.
       (3) Avoiding overconcentration of low-income housing.--
     Notwithstanding paragraphs (1) and (2), with respect to a 
     qualified project for which the Secretary is to provide a new 
     contract under either such paragraph, the Secretary may 
     reduce the number of dwelling units otherwise required to be 
     assisted under the new contract (pursuant to section 
     155(a)(3)) if--
       (A) the Secretary determines that the project is located in 
     a market area in which there is a high concentration of 
     dwelling units occupied by or affordable to very low-income 
     families;
       (B) the Secretary consults with the owner of the project, 
     the tenants of the project (including any resident council), 
     and representatives of the community in which the project is 
     located regarding such reduction and action under 
     subparagraph (D);
       (C) the owner and affected tenants consent to the reduction 
     and action under subparagraph (D);
       (D) the Secretary provides project-based assistance for a 
     number of dwelling units that is not less than the difference 
     between the number of units otherwise required to be assisted 
     under the new contract and the number actually assisted under 
     the new contract; and
       (E) the dwelling units assisted under subparagraph (D) are 
     located in market areas other than the area in which the 
     qualified project is located and such areas do not have a 
     high concentration of dwelling units occupied by or 
     affordable to very low-income families.
     The Secretary shall determine the maximum monthly rents for 
     dwelling units assisted under subparagraph (D) using the 
     procedures under paragraph (2) of this subsection and section 
     156. In determining the maximum monthly rents under the new 
     contract for any dwelling units in the qualified project, the 
     allowance under section 156(b)(1)(G) may be increased to 
     reflect higher costs per unit assisted attributable to 
     assisting less units.
       (c) Rejection of Owner's Proposal.--The Secretary may 
     reject a proposal submitted pursuant to section 152(c) only 
     for a reason contained in the regulations issued under 
     section 154.
       (d) Notice of Secretary's Action.--The Secretary shall 
     simultaneously--
       (1) submit written notice of any action under subsection 
     (b) or (c) to the owner of the qualified project for which 
     such action is taken; and
       (2) submit a copy of the notice to the chief executive 
     officer of the appropriate State or unit of general local 
     government for the jurisdiction within which the project is 
     located, any mortgagee of the project, the tenants of the 
     project (including any resident council for the project), and 
     such other individuals or entities as the Secretary may 
     require.
     Notice under this subsection shall be submitted not later 
     than the expiration of the period for the qualified project 
     referred to in subsection (a). If the Secretary does not 
     provide notice to the owner as required under this 
     subsection, the proposal of the owner shall be considered to 
     have been accepted without modification. Any notice rejecting 
     a proposal by the owner shall clearly state the reason for 
     rejecting the proposal.
       (e) Modifications to Owner's Proposal.--The Secretary may 
     propose modifications to an owner's proposal submitted 
     pursuant to section 152(c) only to the extent necessary to 
     make the proposal comply with the requirements under this 
     subtitle for acceptance by the Secretary.
       (f) Limitation on Secretary's Authority to Reject or 
     Modify.--The Secretary may not reject or propose 
     modifications to a proposal submitted pursuant to section 
     152(c) because an enforcement action is pending against the 
     owner. Notwithstanding any other provision of this subtitle, 
     in such event, the Secretary shall, subject only to the 
     availability of budget authority, extend the applicable 
     expiring contract for the period until the enforcement action 
     is concluded.

     SEC. 154. LIMITATION ON NEW CONTRACTS.

       (a) In General.--The Secretary may refuse to enter into a 
     new contract with the owner of a qualified project if the 
     Secretary determines that the owner of the project submitting 
     the proposal has committed--
       (1) violations of laws, regulations, regulatory agreements, 
     or other agreements for which the Secretary may impose 
     suspension, debarment, civil money penalties, and such other 
     major forms of enforcement action available to the Secretary 
     under law; or
       (2) other substantial and repeated violations of laws, 
     regulations, regulatory agreements or other agreements that 
     have not been cured within a reasonable period of time after 
     notice was provided to the owner.
       (b) Regulations.--Not later than 45 days after the date of 
     enactment of this Act, the Secretary shall publish for 
     comment proposed regulations identifying the violations that, 
     under subsection (a), prohibit the Secretary from entering 
     into a new contract.

     SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.

       (a) In General.--The Secretary may accept the proposal of 
     an owner (made under section 152(c) or negotiations pursuant 
     to such a proposal), and may propose modifications to such a 
     proposal and make an offer to enter into a new contract for 
     qualified housing, only if the agreement provides for a new 
     contract for the qualified housing that complies with the 
     following requirements:
       (1) Renewal for remaining useful life of property.--A new 
     contract shall contain binding commitments necessary to 
     ensure that--
       (A) the contract shall be renewed as provided in paragraph 
     (5) upon expiration for the entire remaining useful life of 
     the qualified project subject to the contract, subject only 
     to the availability of budget authority, the provisions of 
     this subtitle, and the provisions of the contract or law 
     regarding termination of the contract for cause; and
       (B) renewal of the contract under paragraph (5) shall not 
     alter or affect the terms of the contract.
       (2) Project-based assistance.--A new contract shall provide 
     that the Secretary shall provide project-based assistance 
     under this subtitle for dwelling units in the qualified 
     project subject to the contract based upon maximum monthly 
     rents (including utilities and all maintenance and management 
     charges) that the owner may receive for the dwelling units.
       (3) Low-income occupancy.--A new contract shall provide 
     that, during the term of the contract, the owner shall make 
     available for occupancy only by families that (at the time of 
     their initial occupancy) are low-income families or very low-
     income families (as the contract shall provide) the number of 
     dwelling units in the qualified project subject to the 
     contract for which assistance is provided under the expiring 
     contract.
       (4) Maintenance of housing.--The new contract shall require 
     the owner of the qualified project to maintain the housing in 
     compliance with housing quality standards established by the 
     Secretary for housing assisted under section 8 of the United 
     States Housing Act of 1937.
       (5) Contract term.--A new contract shall have a term of 60 
     months and shall be renewable for additional 60-month terms 
     without limitation.
       (6) Section 8 requirements.--A new contract shall provide 
     that the qualified project subject to the contract shall be 
     subject to the requirements applicable to housing assisted 
     under section 8(i) of the United States Housing Act of 1937.
       (7) Capital needs.--A new contract shall contain such terms 
     as the Secretary and the owner agree to regarding conducting 
     rehabilitation and replacement activities for the project and 
     may provide amounts to the owner for meeting immediate 
     rehabilitation and replacement needs of the qualified project 
     if the Secretary determines that providing such amounts would 
     be more cost effective to the Secretary than financing such 
     activities through increased project debt.
       (8) Maximum monthly rents.--A new contract shall provide 
     that the maximum monthly rents for the project under the 
     contract shall be the amount determined under section 156 
     upon entering into the contract, and shall be adjusted 
     annually as provided under such section, except that--
       (A) the maximum monthly rents shall be redetermined in the 
     manner provided under sections 153(b) and 156 upon each 
     renewal of the contract; and
       (B) the owner of the project may, at any time, submit a 
     written request to the Secretary for a redetermination of the 
     maximum monthly rents for the project using the procedure 
     under section 156(b) and, after such request, the rents shall 
     be determined using such method for the remainder of the term 
     of the contract.
       (9) Consideration of tenant concerns.--A new contract shall 
     provide that the owner of the qualified housing shall--
       (A) establish and, in good faith, carry out a procedure, 
     acceptable to the tenants (including any resident council) of 
     the project, for tenants to submit to the owner comments, 
     questions, and requests regarding any issues concerning the 
     project (including the condition, management, and ownership 
     of the project); and
       (B) make a good faith effort to respond to such comments, 
     questions, and requests within a reasonable period of time.
       (b) Property Inspections and Management Reviews Required by 
     Secretary.--The Secretary shall conduct an inspection of the 
     physical condition of each qualified project for which a new 
     contract is entered into under this subtitle and shall 
     conduct a review of the management of each such qualified 
     project, not less than once every 3 years. The Secretary may 
     conduct such an inspection or review more often, as the 
     Secretary considers appropriate, taking into consideration 
     requests and comments from tenants of the qualified project 
     (including any resident council) and from representatives of 
     the unit of general local government for the jurisdiction in 
     which the project is located.

     SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CONTRACTS.

       (a) Status Quo Rent Determination.--
       (1) Procedure.--If the maximum monthly rents under a new 
     contract for a qualified project are to be established under 
     this subsection, the rents shall be established at the amount 
     equal to the maximum monthly rents under the expiring 
     contract existing at the time 24 months before the date of 
     the expiration of the contract (or an amount mutually agreed 
     to by the Secretary and the owner that is less than such 
     amount).
       (2) Rent adjustments.--Annual increases in the maximum 
     monthly rents for any qualified project for which the rents 
     under a new contract are to be determined under this 
     subsection shall be based on the application of the annual 
     adjustment factor, pursuant to section 8(d)(3) of the United 
     States Housing Act of 1937.
       (3) Service coordinators.--Notwithstanding paragraph (1), 
     the maximum monthly rents established (and adjusted) under 
     this subsection for a qualified project shall be increased to 
     the extent necessary to provide for the total costs of a 
     service coordinator under section 161 for the project.
       (b) Budget-Based Rent Determination.--
       (1) Procedure.--If the maximum monthly rents under a new 
     contract for a qualified project are to be established under 
     this subsection, the rents shall be established at such a 
     level or levels that would provide income sufficient to 
     support the following actual and projected costs of operating 
     the project:
       (A) Debt service.--The debt service on any federally-
     insured or assisted loans for the qualified project or any 
     other loans for the project approved by the Secretary at the 
     time the loans were entered into or subsequently, except that 
     the Secretary may provide that such debt service shall not 
     include--
       (i) any debt service attributable to any equity loan 
     insured under section 241(f) of the National Housing Act or 
     any similar loan made for the purposes of liquidating the 
     equity of the owner in the qualified project; and
       (ii) if the Secretary requires refinancing of debt under 
     section 159 and the owner does not refinance as provided in 
     such section, any debt service relating to such debt in 
     excess of the amount that the Secretary determines is 
     appropriate under prevailing market conditions at the time 
     such refinancing was required to occur.
       (B) Operating expenses.--Operating expenses for the 
     qualified project, including costs of measures to reduce or 
     control crime, and the total costs of a service coordinator 
     under section 161 for the project.
       (C) Reserves.--Adequate reserves for the qualified project, 
     as determined pursuant to a comprehensive needs assessment 
     for the project prepared and approved in accordance with 
     title IV of the Housing and Community Development Act of 1992 
     or in such other manner as the Secretary may require.
       (D) Allowance for losses.--An allowance for potential 
     operating losses of the qualified project caused by vacancies 
     and failure to collect rents, which shall be an amount equal 
     to 5 percent of any rental income from the project (including 
     any amounts paid in rent for utilities).
       (E) Distribution to owner.--An allowance for a distribution 
     to the owner of the qualified project, which shall be an 
     amount per dwelling unit in the project per year that is 
     determined by the Secretary taking into consideration the 
     size, location, and amount of rents of the project. The 
     allowance shall be adjusted upon any renewal of the new 
     contract, in the manner determined by the Secretary, to 
     provide for inflation.
       (F) Tenant organization.--An amount for technical 
     assistance to the resident council (if any) of the qualified 
     project or for technical assistance in organizing or 
     operating a resident council, which shall be an amount equal 
     to $20 per dwelling unit in the project per year. The 
     Secretary shall provide that such amounts shall not be made 
     available to the owner but shall be accessible only by 
     resident councils or by tenants for establishment or 
     operation of resident councils.
       (G) Allowance for unique costs.--An allowance for unique 
     costs specific to and characteristic of qualified housing or 
     other housing for low-income families receiving project-based 
     assistance from the Secretary, in the amount agreed to by the 
     Secretary and the owner.
       (H) Allowance for high-rent areas.--If the Secretary 
     determines that the prevailing rents in the market area in 
     which a qualified project is located exceed the fair market 
     rentals for dwelling units of the applicable sizes and types 
     of dwelling units in the market area in which the qualified 
     housing is located--
       (i) an allowance may be provided (at the discretion of the 
     Secretary) in an amount necessary to provide maximum monthly 
     rents under this subsection in an amount equal to the 
     prevailing market rents in the area; and
       (ii) an allowance in the amount referred to in clause (i) 
     shall be provided if the Secretary determines that there is a 
     lack of sufficient housing in the market area in which the 
     project is located that is affordable to low-income families.
       (2) Rent adjustments.--
       (A) In general.--Annual increases in the maximum monthly 
     rents for any qualified project for which the rents under a 
     new contract are to be determined under this subsection shall 
     be based on the application of the operating cost adjustment 
     factor, pursuant to section 8(d)(3) of the United States 
     Housing Act of 1937.
       (B) Excessive adjustments.--The Secretary may require the 
     owner of a qualified project for which a new contract has 
     been provided to submit a proposal in the manner provided 
     under paragraph (3) for redetermination of maximum monthly 
     rents for the project if--
       (i) not less than 2 rent adjustments have been made 
     pursuant to subparagraph (A) for the project;
       (ii) an intervening redetermination of maximum monthly 
     rents for the project pursuant to paragraph (1) has not 
     occurred; and
       (iii) the Secretary determines that the rents resulting 
     from the rent adjustments are materially in excess of the 
     rents necessary to support the costs for the project 
     described in paragraph (1).

     If pursuant to such a redetermination the Secretary 
     determines that the rents for the project are greater than 
     the amount described in clause (iii), the Secretary may 
     reduce the maximum monthly rents for the project to the 
     amount described in clause (iii), effective on the first day 
     of the month following written notification by the Secretary 
     to the owner of such new rents.
       (3) Timing.--If the Secretary requests an owner of a 
     qualified project or a project for which a new contract is to 
     be provided to submit a proposal for maximum monthly rents 
     based on costs described in paragraph (1) and the owner fails 
     to submit such a proposal during the 90-day period beginning 
     upon receipt of such request, the Secretary may establish the 
     maximum monthly rents for the project based on such 
     information as is available to the Secretary from the owner's 
     most recent audited financial statements, without the 
     agreement of the owner.
       (4) Additional information from owner.--The owner of a 
     qualified project (including a project for which a new 
     contract has been provided) may, at any time, submit to the 
     Secretary information regarding prevailing rent levels for 
     comparable dwelling units in the market area in which the 
     project is located and the Secretary shall consider such 
     information in making any determinations or agreements under 
     this subsection regarding the project.

     SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO NEW 
                   CONTRACT.

       (a) Notice.--If--
       (1) the owner of a qualified project indicates, in the 
     notice required under section 152(b), an intention not to 
     enter into a new contract,
       (2) the Secretary and the owner fail to agree to enter into 
     a new contract after a reasonable period of negotiation, or
       (3) the Secretary refuses to enter into a new contract with 
     the owner pursuant to section 154,

     the Secretary shall provide notice containing the information 
     under subsection (b) to the owner, the chief executive 
     officer of the State or unit of general local government for 
     the jurisdiction within which the project is located, any 
     mortgagee of the project, the tenants of the project 
     (including any resident council for the project), and such 
     other individuals or entities as the Secretary considers 
     appropriate.
       (b) Contents of Notice.--Notice under subsection (a) shall 
     identify the qualified project, state the intention of the 
     Secretary to enter into a new contract for the project with 
     an owner of the project acceptable to the Secretary, state 
     that the Secretary may take either of the actions authorized 
     under subsection (c) with respect to the project, and propose 
     maximum monthly rents for the project subject to the 
     requirements of sections 153(b) and 156.
       (c) Attempted Sale of Project.--After providing notice 
     under subsection (b) for a qualified project--
       (1) the Secretary shall negotiate with the owner and other 
     interested parties to develop a plan for sale of the project 
     in a timely manner to a new owner who agrees to enter into a 
     new contract with the Secretary and who may be a nonprofit or 
     for-profit entity, a State or local governmental entity, a 
     tenant (or group of tenants) or a resident council; a new 
     contract under this paragraph may be provided pursuant to the 
     loan management program under section 8(q)(2) of the United 
     States Housing Act of 1937 or a contract through a public 
     housing agency for project-based assistance under section 
     8(i) of such Act; and
       (2) notwithstanding paragraph (1), the Secretary may 
     acquire the qualified project by condemnation, under judicial 
     process, pursuant to the first section of the Act of August 
     1, 1888 (Chapter 728, 25 Stat. 357; 40 U.S.C. 257).
       (d) Failure to Sell Project.--
       (1) Transfer of project-based assistance to other 
     housing.--If, after providing notice under subsection (b) for 
     a qualified project and making reasonable efforts under 
     subsection (c)(1) the Secretary fails to enter into a new 
     contract for the project (and determines that action under 
     subsection (c)(2) is not appropriate), the Secretary shall, 
     subject only to the availability of budget authority and the 
     absence of qualified requests for such assistance, provide 
     project-based rental assistance for at least the same number 
     of dwelling units in housing located within the same market 
     area as the qualified project as were assisted under the 
     expiring contract for the project. Tenants of the qualified 
     project shall be offered initial occupancy in dwelling units 
     assisted pursuant to this paragraph.
       (2) Consultation.--In providing project-based assistance 
     under this subsection, the Secretary shall consult with 
     nonprofit and for-profit entities, State and local 
     governmental entities, and tenants and any resident council 
     of the project, regarding acquisition and operation of 
     housing to be assisted under this subsection.
       (e) Technical Assistance.--Using a portion of any amounts 
     in an account for residual receipts established for a 
     qualified project and any amounts made available for new 
     contracts under this subtitle, the Secretary shall (subject 
     to the availability of such amounts) provide for technical 
     assistance for tenants of the project (including any resident 
     councils), nonprofit organizations, nonprofit developers of 
     affordable housing, and State and local governmental agencies 
     to the extent necessary to--
       (1) develop the capacity and ability of such entities to 
     carry out activities pursuant to subsections (c)(1) and (d); 
     and
       (2) assist such entities in preparing submissions, 
     proposals, and such other documents and entering into 
     contracts, agreements, and other arrangements involved in 
     such activities.
       (f) Assistance for Project Tenants.--
       (1) Right to receive assistance.--If, in the notice 
     required by section 152(b), the owner indicates a preference 
     not to enter into a new contract or the Secretary fails to 
     enter into a new contract for the project, the Secretary 
     shall provide assistance under paragraphs (2) and (3), 
     subject only to the availability of budget authority, for 
     each family who on the date of the expiration of the expiring 
     contract resides in a dwelling unit in the project that is 
     assisted under the expiring contract.
       (2) Type of assistance.--Assistance required under this 
     paragraph shall be provided, as determined by the Secretary, 
     in one of the following forms:
       (A) Tenant-based assistance.--Assistance may be provided as 
     tenant-based rental assistance under the provisions of 
     section 8(b) of the United States Housing Act of 1937, as in 
     effect on June 1, 1994, except that in providing such 
     assistance the Secretary may increase the maximum monthly 
     rental amount to the extent necessary to permit families 
     remain in the dwelling unit they occupy in the qualified 
     project or to obtain a comparable dwelling unit in the same 
     market area.
       (B) Occupancy in a unit receiving project-based 
     assistance.--The family may be offered occupancy of an 
     available dwelling unit that is assisted under a contract 
     pursuant to subsection (c)(1) or (d).
       (3) Relocation assistance.--Assistance required under this 
     section is assistance to the tenant of a qualified project in 
     the amount of the total cost of relocating to a unit assisted 
     under paragraph (2).

     SEC. 158. CONTRACT EXTENSION.

       Subject to the availability of budget authority, the 
     Secretary may extend any expiring contract in force on the 
     date of enactment of this Act, under identical terms and 
     conditions, for not more than 24 months if the Secretary 
     determines that such extension is necessary to protect 
     tenants of the qualified project subject to the contract or 
     the General Insurance Fund established under section 519 of 
     the National Housing Act, except that--
       (1) the authority under this section may be exercised only 
     once for any contract or qualified project; and
       (2) such authority may not be exercised for a qualified 
     project for which the owner has provided timely notification 
     under section 152(b) indicating an intention not to enter 
     into a new contract for the project, unless the owner 
     expressly agrees to the extension or the Secretary is taking 
     action pursuant to section 152(e)(5) or 153(f).

     SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING DEBT AND 
                   TREATMENT OF RESIDUAL RECEIPTS.

       (a) In General.--Before entering into a new contract with a 
     present or future owner of a qualified project, the Secretary 
     shall encourage and, subject to the exceptions in subsection 
     (d), may require--
       (1) the restructuring of debt if the costs to the Federal 
     Government of such restructuring are less than the costs 
     incurred by the Federal Government under a contract for 
     assistance under section 8 of the United States Housing Act 
     of 1937 at the project's current debt level; and
       (2) the refinancing of all debt that is financed at a rate 
     250 basis points in excess of prevailing market rates for 
     debt with a similar maturity.

     Any project refinancing or debt restructuring shall be 
     accompanied by a corresponding reduction in the maximum 
     monthly rents for the project.
       (b) FHA-Insured Projects.--Subject to the exceptions set 
     forth in subsection (d), the Secretary shall require an owner 
     of a project subject to a mortgage insured by the Secretary 
     which is to be assisted under a new contract to certify that 
     any debt that meets the conditions of paragraph (1) or (2) of 
     subsection (a) will be restructured or refinanced, as 
     applicable.
       (c) State-Financed Projects.--The Secretary shall establish 
     procedures to inform State agencies that insure or finance 
     mortgages of the provisions of this subtitle, and shall 
     encourage such agencies to refinance or otherwise restructure 
     debt which meets the conditions of paragraph (1) or (2) of 
     subsection (a).
       (d) Exceptions.--The Secretary shall not require the 
     refinancing or debt restructuring of any project, if--
       (1) the project was financed through obligations issued by 
     a State or local housing agency or the Government National 
     Mortgage Association and such refinancing or debt 
     restructuring is inconsistent with applicable law or 
     agreements governing such financing; and
       (2) in the Secretary's determination, the refinancing will 
     not result in significant savings to the Department of 
     Housing and Urban Development or to the mortgagor.
       (e) Discretionary Assistance.--To facilitate renewal 
     consistent with this section and section 156(b), the 
     Secretary may, from amounts appropriated under this 
     subtitle--
       (1) pay the owner's nonmortgageable transaction costs;
       (2) provide the State insuring agency or the mortgagee with 
     an equitable share of the savings recaptured from the 
     refinancing;
       (3) apply a share of the savings recaptured from the 
     refinancing to the project's reserves or capital expenses;
       (4) bifurcate the note to leave a first note serviceable 
     within rents reflective of the local market; and
       (5) assist in financing a project's rehabilitation needs 
     through the provision of up-front grants from--
       (A) residual receipts distributed to the Secretary;
       (B) the budget authority provided for increases in new 
     contracts to pay for rehabilitation, if the Secretary 
     determines that the provision of such grants in addition to 
     rental assistance under section 8 of the United States 
     Housing Act of 1937 would be cost-effective; and
       (C) savings resulting from refinancing or otherwise 
     restructuring the debt.
       (f) Residual Receipts.--
       (1) In general.--Residual receipts distributed to the 
     Secretary shall be retained by the Secretary for use under 
     this subtitle.
       (2) Expedited acquisition.--The Secretary may expedite the 
     acquisition of residual receipts by entering into agreements 
     with owners of housing covered by an expiring contract to 
     provide such owner with a share of the receipts, not to 
     exceed 15 percent, only if the share will be applied to the 
     project or to its reserves.

     SEC. 160. RETENTION OF PROGRAM SAVINGS BY SECRETARY.

       Any savings achieved through implementation of the 
     provisions of this Act, except for such savings made 
     available to State or local housing agencies pursuant to 
     section 159, shall be retained by the Secretary to increase 
     affordable housing opportunities, in such manner as may be 
     determined by statute, or as may be determined by the 
     Secretary.

     SEC. 161. SUPPORTIVE SERVICES.

       (a) Provision of Service Coordinator.--Each owner of 
     qualified project or a project for which a new contract has 
     been provided shall provide, to the extent amounts are 
     available pursuant to subsection (b) or another provision of 
     this subtitle, that the project is served (on a full- or 
     part-time basis in a manner approved by the Secretary) by a 
     service coordinator under section 671 of the Housing and 
     Community Development Act of 1992. The preceding sentence 
     shall apply only after the expiration of the 270-day period 
     beginning on the date of the enactment of this Act.
       (b) Payment of Costs.--Notwithstanding any other provision 
     of law, the salary and other costs associated with employing 
     a service coordinator shall be considered an eligible project 
     expense for a qualified project which may be fully funded 
     under the expiring contract, as provided by the Secretary.

     SEC. 162. DELEGATION OF AUTHORITY.

       The Secretary may delegate the authority of the Secretary 
     under this subtitle, as the Secretary considers appropriate, 
     to officials of States and units of general local government, 
     who may also act as contract administrators under applicable 
     law.

     SEC. 163. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``expiring contract'' means any contract for 
     assistance under section 8 of the United States Housing Act 
     of 1937 pursuant to the authority referred to in paragraph 
     (4)(A) of this subsection;
       (2) the term ``fair market rental'' means the fair market 
     rental established pursuant to the authority under--
       (A) section 8(c)(1) of the United States Housing Act of 
     1937, as such section existed before the date of the 
     enactment of this Act; or
       (B) section 8(e) of the United States Housing Act of 1937, 
     as in effect after the date of the enactment of this Act;
       (3) the terms ``low-income family'' and ``very low-income 
     family'' have the meanings given the terms in section 3 of 
     the United States Housing Act of 1937;
       (4) the term ``maximum monthly rents'' means, with respect 
     to a new contract for a qualified project, the maximum 
     monthly rent that the owner is entitled to receive for 
     dwelling units in the project assisted under the new 
     contract;
       (5) the term ``new contract'' means--
       (A) a contract pursuant to this subtitle to provide 
     project-based assistance for a qualified project; and
       (B) a contract pursuant to the provisions of subsection (d) 
     or (f)(2)(B) of section 157 or section 153(b)(3);
       (6) the term ``owner'' includes the current or subsequent 
     owner or owners of a qualified project;
       (7) the terms ``qualified project'' and ``project'' mean a 
     multifamily housing project that--
       (A) was constructed or substantially rehabilitated pursuant 
     to assistance provided under section 8(b)(2) of the United 
     States Housing Act of 1937, as such section existed before 
     November 30, 1983; and
       (B) is assisted under an expiring contract;
       (8) the term ``resident council'' means any democratically 
     operated organization of tenants of a qualified project; and
       (9) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development.

     SEC. 164. REGULATIONS.

       The Secretary shall issue any final regulations necessary 
     to carry out this subtitle, which shall take effect not later 
     than 6 months after the date of the enactment of this Act. 
     The regulations shall be issued after notice and opportunity 
     for public comment in accordance with the procedure under 
     section 553 of title 5, United States Code, applicable to 
     substantive rules (notwithstanding subsections (a)(2), 
     (b)(B), and (d)(3) of such section).

     SEC. 165. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out the provisions of this subtitle for 
     which amounts are not provided under section 5(c) of the 
     United States Housing Act of 1937.
                   Subtitle E--Homeownership Programs

     SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.

       (a) Authorization of Appropriations and Technical 
     Assistance.--
       (1) In general.--Section 402 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12870) is amended 
     by striking subsections (a) and (b) and inserting the 
     following new subsection:
       ``(a) Homeownership Programs.--There are authorized to be 
     appropriated for grants under this title $100,000,000 for 
     fiscal year 1995 and $100,000,000 for fiscal year 1996, which 
     shall be available for activities authorized under subtitles 
     B and C. Any amounts appropriated pursuant to this subsection 
     shall remain available until expended.''.
       (b) HOPE II Matching Requirements.--Section 423(c)(1) of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12873(c)) is amended by striking ``33 percent'' and 
     inserting ``25 percent''.
       (c) Eligibility Under HOPE III of Homes on Leased Land 
     Owned by Community Land Trusts.--Section 446(4) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12896(4)) is amended--
       (1) by inserting ``(A)'' before ``owned''; and
       (2) by inserting before the period at the end the 
     following: ``, or (B) located on leased land owned by a 
     community land trust (as such term is defined in section 233 
     of the HOME Investment Partnerships Act)''.

     SEC. 172. NATIONAL HOMEOWNERSHIP FUND.

       Subtitle A of title III of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12701 note) is amended to 
     read as follows:
               ``Subtitle A--National Homeownership Fund

     ``SEC. 301. SHORT TITLE.

       ``This subtitle may be cited as the `National Homeownership 
     Fund Act'.

     ``SEC. 302. AUTHORITY.

       ``The Secretary of Housing and Urban Development may make 
     grants under this subtitle to States (including State housing 
     finance agencies), local housing finance agencies, and 
     nonprofit housing intermediaries to provide assistance, in 
     accordance with the provisions of this subtitle, for the 
     acquisition of principal residences for first-time homebuyers 
     (including homebuyers buying shares in limited equity 
     cooperatives).

     ``SEC. 303. ELIGIBLE ASSISTANCE.

       ``A grantee may use amounts received under this subtitle 
     only to provide assistance to first-time homebuyers in the 
     following manners:
       ``(1) Downpayment assistance.--Assistance payments to 
     provide amounts for the downpayment (including closing costs 
     and other costs payable at the time of closing) on a mortgage 
     for the homebuyer.
       ``(2) Second mortgage assistance.--Assistance payments to 
     provide loans that have such terms for payment of interest 
     and principal as may be determined by the grantee.
       ``(3) Capitalization of revolving loan funds.--To establish 
     revolving loan funds (or to make grants to public 
     organizations or agencies to establish such funds) to provide 
     homeownership assistance to eligible first-time homebuyers in 
     accordance with the provisions of this subtitle. Any grantee 
     under this subtitle (and any subgrantee of such a grantee) 
     shall provide an equal amount of local investment for such 
     revolving loan fund and any proceeds or repayments from loans 
     made under this paragraph shall be returned to the revolving 
     loan fund established under this paragraph to be used for 
     purposes related to this section.
       ``(4) Interest rate buydowns.--Assistance payments so that 
     the rate of interest payable on a mortgage by the homebuyer 
     does not exceed 6 percent.

     ``SEC. 304. ELIGIBILITY REQUIREMENTS.

       ``(a) Homebuyer.--Assistance may be provided only to 
     homebuyers meeting the following requirements:
       ``(1) First-time homebuyer.--The homebuyer is an individual 
     who--
       ``(A)(i) (and whose spouse) has had no ownership in a 
     principal residence during the 3-year period ending on the 
     date of purchase of the property with respect to which 
     assistance payments are made under this subtitle;
       ``(ii) is a displaced homemaker who, except for owning a 
     home with his or her spouse or residing in a home owned by 
     the spouse, meets the requirements of clause (i); or
       ``(iii) is a single parent who, except for owning a home 
     with his or her spouse or residing in a home owned by the 
     spouse while married, meets the requirements of clause (i); 
     and
       ``(B) meets the requirements of subparagraph (A)(i), (ii), 
     or (iii), except for owning, as a principal residence, a 
     dwelling unit whose structure is not permanently affixed to a 
     permanent foundation in accordance with local or other 
     applicable regulations.
       ``(2) Maximum income of homebuyer.--The aggregate annual 
     income of the homebuyer and the members of the family of the 
     homebuyer residing with the homebuyer, for the 12-month 
     period preceding the date of the application of the homebuyer 
     for assistance under this subtitle, does not exceed 115 
     percent of the median income for a family of 4 persons 
     (adjusted by family size) in the applicable metropolitan 
     statistical area (or such other area that the Secretary 
     determines for areas outside of metropolitan statistical 
     areas). The Secretary shall provide for certification of such 
     income for purposes of initial eligibility for assistance 
     payments under this subtitle.
       ``(b) Mortgage.--Assistance may be provided only for 
     mortgages meeting the following requirements:
       ``(1) Principal residence.--The property subject to the 
     mortgage is a single-family residence or unit in a 
     cooperative (including any manufactured home park owned by 
     residents or owned by nonprofit organizations for future 
     ownership by residents) or condominium, or a single family 
     residence located on leased land owned by a community land 
     trust, and is the principal residence of the homebuyer.
       ``(2) Maximum mortgage amount.--The principal obligation of 
     the first mortgage and any second mortgage assistance 
     provided under this subtitle does not exceed the principal 
     amount that could be insured under section 203(b) of the 
     National Housing Act with respect to a property having the 
     same number of dwelling units.
       ``(c) Minimum Downpayment.--For first-time homebuyers to 
     receive downpayment assistance under section 303(a)(1), the 
     homebuyer shall have paid not less than 1 percent of the cost 
     of acquisition of the property (excluding any mortgage 
     insurance premiums paid at the time the mortgage is insured), 
     as such cost is estimated by the Secretary.

     ``SEC. 305. COUNSELING REQUIREMENTS.

       ``Each grantee under this subtitle shall ensure that each 
     homebuyer receiving assistance under this subtitle from the 
     grantee (or any subgrantee of such grantee) shall be provided 
     prepurchase and postpurchase homeownership counseling from 
     individuals certified by the Secretary under section 106(e) 
     of the Housing and Urban Development Act of 1968.

     ``SEC. 306. ALLOCATION OF GRANT AMOUNTS.

       ``(a) In General.--The Secretary may make a grant under 
     this subtitle only to a State (including a State housing 
     finance agency), local housing finance agency, or nonprofit 
     housing intermediary that submits to the Secretary an 
     application under this section that is approved by the 
     Secretary. Applications shall be made in such form and in 
     accordance with such procedures as the Secretary shall 
     establish.
       ``(b) Minimum Requirements.--An application under this 
     section shall contain a plan that describes how the applicant 
     will achieve the objectives of this subtitle. The application 
     shall include--
       ``(1) a description of the geographic area, including the 
     revitalization area included, to be covered by the program to 
     provide assistance under this subtitle;
       ``(2) the characteristics of the households to be served by 
     the program;
       ``(3) a description and evidence of the commitment of other 
     public and private resources to be made available in the 
     revitalization area and other areas in which homebuyers 
     receive assistance under this subtitle;
       ``(4) a description of any secondary market and private 
     mortgage insurance involvement and commitment in connection 
     with assistance under this subtitle;
       ``(5) a description of how prepurchase and postpurchase 
     counseling will be provided to homebuyers assisted under this 
     subtitle;
       ``(6) a description of any restrictions on resale and 
     profits;
       ``(7) a description of existing affordable housing programs 
     and resources available to undertake rehabilitation of 
     properties when needed;
       ``(8) a description of the process for award and 
     disbursement of assistance to homebuyers; and
       ``(9) a description of the history of the applicant in 
     undertaking similar projects.
       ``(c) Selection.--The Secretary shall allocate amounts 
     available in any fiscal year for assistance under this 
     subtitle to States (including State housing finance 
     agencies), local housing finance agencies, or nonprofit 
     housing intermediaries for homebuyers through a national 
     competition in accordance with criteria established by the 
     Secretary. The criteria shall include the extent to which the 
     applicant has experience in providing homeownership 
     opportunities for low- and moderate-income households.
       ``(d) Targeting for Revitalization Areas.--Each grantee 
     under this subtitle shall use not more than 50 percent of any 
     amounts received under this subtitle for assistance under 
     section 303(a) for homebuyers purchasing residences in 
     revitalization areas using mortgages insured under section 
     203(b) of the National Housing Act.

     ``SEC. 307. REPORT.

       ``Not later than 18 months after the date of the issuance 
     of final regulations pursuant to section 310, the Secretary 
     shall submit to the Congress a report stating the amount of 
     loans made in revitalization areas and in other areas, the 
     amount of loans insured under the National Housing Act made 
     in connection with assistance under this section and the 
     amount of privately insured loans made in connection with 
     such assistance, and an analysis of the effectiveness of such 
     assistance in assisting first-time homebuyers.

     ``SEC. 308. DEFINITIONS.

       ``For purposes of this subtitle:
       ``(1) Assistance.--The term `assistance' means--
       ``(A) any downpayment assistance provided under section 
     303(1);
       ``(B) any second mortgage loan provided under section 
     303(2);
       ``(C) any loan provided from a revolving fund established 
     under section 303(3); and
       ``(D) any payment for buydown of an interest rate provided 
     under section 303(4).
       ``(2) Community land trust.--The term `community land 
     trust' has the meaning given the term in section 233 of the 
     Cranston-Gonzalez National Affordable Housing Act.
       ``(3) Displaced homemaker.--The term `displaced homemaker' 
     means an individual who--
       ``(A) is an adult;
       ``(B) has not worked full-time, full-year in the labor 
     force for a number of years, but has during such years, 
     worked primarily without remuneration to care for the home 
     and family; and
       ``(C) is unemployed or underemployed and is experiencing 
     difficulty in obtaining or upgrading employment.
       ``(4) Revitalization area.--The term `revitalization area' 
     means--
       ``(A) an empowerment zone or enterprise community approved 
     under Subchapter U of Chapter 1 of the Internal Revenue Code 
     of 1986, or an equivalent State-approved enterprise zone; and
       ``(B) a neighborhood that, in the determination of the 
     Secretary, is targeted by a unit of general local government 
     for revitalization using coordinated affordable housing 
     programs and enhanced supportive services.
       ``(5) Nonprofit housing intermediary.--The term `nonprofit 
     housing intermediary' means a nonprofit organization that the 
     Secretary determines has among its principal purposes 
     activities described in clauses (1) and (2) of section 802(a) 
     of the Housing and Community Development Act of 1974.
       ``(6) Single parent.--The term `single parent' means an 
     individual who--
       ``(A) is unmarried or legally separated from a spouse; and
       ``(B)(i) has 1 or more minor children for whom the 
     individual has custody or joint custody; or
       ``(ii) is pregnant.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(8) State.--The term `State' means the States of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, Guam, the Virgin Islands, American Samoa, and any 
     other territory or possession of the United States.
       ``(9) State housing finance agency.--The term `State 
     housing finance agency' has the meaning given the term in 
     section 802(b) of the Housing and Community Development Act 
     of 1974.
       ``(10) Local housing finance agency.--The term `local 
     housing finance agency' means a housing finance agency of any 
     city, county, town, township, parish, village, or other 
     general purpose subdivision of a State, or of any combination 
     of such political subdivisions recognized by the Secretary, 
     or any other agency or instrumentality of such an entity that 
     carries out activities described in section 303.

     ``SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated for assistance 
     under this subtitle $115,000,000 for fiscal year 1995 and 
     $215,000,000 for fiscal year 1996. Any amount appropriated 
     under this section shall remain available until expended.

     ``SEC. 310. REGULATIONS.

       ``Not later than 10 days after the date of the enactment of 
     the Housing and Community Development Act of 1994, the 
     Secretary shall issue an interim rule to implement this 
     subtitle. The Secretary shall issue final regulations 
     necessary to implement this subtitle not later than 90 days 
     after issuance of such interim rule.''.

     SEC. 173. SECTION 235 MORTGAGE REFINANCING.

       Section 235(r) of the National Housing Act (12 U.S.C. 
     1715z(r)) is amended--
       (1) in paragraph (2)(C), by inserting after ``refinanced'' 
     the following: ``, plus the costs incurred in connection with 
     the refinancing as described in paragraph (4)(B) to the 
     extent that the amount for those costs is not otherwise 
     included in the interest rate as permitted by subparagraph 
     (E) or paid by the Secretary as authorized by paragraph 
     (4)(B)'';
       (2) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by inserting 
     after ``otherwise)'' the following: ``and the mortgagee (with 
     respect to the amount described in subparagraph (A))''; and
       (B) in subparagraph (A), by inserting after ``mortgagor'' 
     the following: ``and the mortgagee''; and
       (3) by amending paragraph (5) to read as follows:
       ``(5) The Secretary shall use amounts of budget authority 
     recaptured from assistance payments contracts relating to 
     mortgages that are being refinanced for assistance payments 
     contracts with respect to mortgages insured under this 
     subsection. The Secretary may also make such recaptured 
     amounts available for incentives under paragraph (4)(A) and 
     the costs incurred in connection with the refinancing under 
     paragraph (4)(B). For purposes of subsection (c)(3)(A), the 
     amount of recaptured budget authority that the Secretary 
     commits for assistance payments contracts relating to 
     mortgages insured under this subsection and for amounts paid 
     under paragraph (4) shall not be construed as unused.''.

     SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP AND RENTAL 
                   HOUSING CHOICE.

       (a) Extensions of Programs.--
       (1) Emergency homeownership counseling.--Section 106(c)(9) 
     of the Housing and Urban Development Act of 1968 (12 U.S.C. 
     1701x(c)(9)) is amended by striking ``September 30, 1994'' 
     and inserting ``September 30, 1996''.
       (2) Prepurchase and foreclosure-prevention counseling 
     demonstration.--Section 106(d)(13) of the Housing and Urban 
     Development Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended 
     by striking ``fiscal year 1994'' and inserting ``fiscal year 
     1996''.
       (b) Authorization of Appropriations.--Section 106 of the 
     Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) 
     is amended--
       (1) in subsection (a), by striking paragraph (3)
       (2) in subsection (c)--
       (A) by striking paragraph (8); and
       (B) by redesignating paragraph (9) (as amended by 
     subsection (a)) as paragraph (8);
       (3) in subsection (d)--
       (A) by striking paragraph (12); and
       (B) by redesignating paragraph (13) (as amended by 
     subsection (a)) as paragraph (12);
       (4) in subsection (f), by striking paragraph (7); and
       (5) by adding at the end the following new subsection:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $62,000,000 for fiscal year 1995 and $65,000,000 for fiscal 
     year 1996, of which amounts $30,000,000 shall be available in 
     each such fiscal year to carry out subsection (c). Any 
     amounts appropriated pursuant to this subsection shall remain 
     available until expended.''.
       (c) Outreach.--Section 106(a) of the Housing and Urban 
     Development Act of 1968 (12 U.S.C. 1701x(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``The'' and inserting ``Activities.--The'';
       (B) in the matter preceding clause (i), by inserting ``or 
     consortia of organizations'' after ``organizations'';
       (C) in clause (iii), by striking ``and'' at the end;
       (D) in clause (iv), by striking the period at the end and 
     inserting a semicolon; and
       (E) by inserting at the end the following new clauses:
       ``(v) the provision of outreach activities designed to 
     improve the access of low- and moderate-income households to 
     homeownership and sources of mortgage credit;
       ``(vi) the provision of counseling to applicants for and 
     recipients of tenant-based assistance to enable such families 
     to move to areas of mixed incomes; and
       ``(vii) counseling and advice to tenants and homeowners 
     regarding understanding financial practices, matters, and 
     transactions commonly engaged in by, or involving, tenants 
     and homeowners, including activities and services provided by 
     banks and other financial institutions, extension of credit, 
     standard lending practices, checking accounts and check 
     cashing, and savings accounts, which shall be made available 
     in such manners and languages appropriate for low-income and 
     disadvantaged families residing in the area in which the 
     entity providing the counseling and advice is located.'';
       (2) in paragraph (2)--
       (A) by striking ``The'' and inserting ``Eligible 
     Homeowners.--The''; and
       (B) in the second sentence, by inserting ``or consortia of 
     organizations'' after ``organizations''; and
       (3) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) Homeownership counseling.--The Secretary of Housing 
     and Urban Development may contract with national, State, or 
     community-based entities, and consortia of such entities, and 
     local public or private organizations (including public 
     housing agencies), to carry out activities under paragraph 
     (1)(v). Contractors shall be selected on a competitive basis, 
     in accordance with selection criteria determined by the 
     Secretary. The contractors shall carry out activities 
     prescribed by the Secretary, including activities such as--
       ``(A) assisting homebuyers by working with mortgage lending 
     entities to make mortgage credit available to low- and 
     moderate-income homebuyers;
       ``(B) leveraging Federal funds with other sources of 
     funding to support activities under its counseling program, 
     including leveraging private, community-based resources for 
     the purpose of assisting prospective mortgagors achieve 
     homeownership;
       ``(C) conducting outreach and marketing to prospective 
     homebuyers, particularly homebuyers in targeted neighborhoods 
     with a high proportion of low- and moderate-income and 
     minority renter households;
       ``(D) coordinating a prepurchase homeownership strategy 
     that includes linking other counseling providers and 
     community-based organizations approved by the Secretary, 
     assisting prospective homebuyers to repair credit, educating 
     potential homebuyers on the requirements of homeownership, 
     providing technical assistance, assisting in the packaging of 
     mortgage loan applications, and matching a family's resources 
     with appropriate government and private sector homeownership 
     assistance programs; and
       ``(E) creating post-purchase counseling programs that 
     include default- prevention counseling to assist homebuyers 
     to retain their homes.
       ``(4) Rental counseling.--The Secretary of Housing and 
     Urban Development may contract with national, State, or 
     community-based entities, and consortia of such entities, and 
     local public or private organizations (including public 
     housing agencies), to carry out activities under paragraph 
     (1)(vi). Contractors shall be selected on a competitive 
     basis, in accordance with selection criteria determined by 
     the Secretary. The contractors shall carry out activities 
     prescribed by the Secretary, including activities such as--
       ``(A) advising families on strategies for obtaining 
     appropriate housing;
       ``(B) providing transportation assistance and other 
     services to give families access to areas without high 
     concentrations of persons living in poverty;
       ``(C) continuing advice and counseling to assist families 
     after moving to areas without high concentrations of persons 
     living in poverty; and
       ``(D) undertaking aggressive outreach to potential owners 
     to expand the availability of housing in areas without high 
     concentrations of persons living in poverty.
     Each entity receiving assistance pursuant to this paragraph 
     shall make counseling and assistance under this paragraph 
     available to low-income families who are referred to the 
     entity pursuant to section 8(s)(2) of the United States 
     Housing Act of 1937, including counseling and assistance 
     regarding housing opportunities in the area of jurisdiction 
     of the public housing agency involved and assistance in 
     obtaining new rental residences in areas within such 
     jurisdiction not having high concentrations of persons living 
     in poverty.''.
       (d) Notification.--Section 106(c)(5)(C) of the Housing and 
     Urban Development Act of 1968 is amended by adding at the end 
     the following new flush sentence:
     ``Except as provided in clauses (i) and (ii), this 
     subparagraph may not be construed to apply to any other loan 
     for which the borrower is a veteran.''.
                       Subtitle F--Other Programs

     SEC. 181. COMMUNITY PARTNERSHIPS AGAINST CRIME.

       (a) Short Title, Purposes, and Authority to Make Grants.--
     Chapter 2 of subtitle C of title V of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11901 et seq.) is amended by striking the 
     chapter heading and all that follows through section 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 1994'.

     ``SEC. 5122. PURPOSES.

       ``The purposes of this chapter are to--
       ``(1) improve the quality of life for the vast majority of 
     law-abiding public housing residents by reducing the levels 
     of fear, violence, and crime in their communities;
       ``(2) substantially expand and enhance the Federal 
     Government's commitment to eliminating crime in and around 
     public housing and other federally assisted low-income 
     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) 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;
       ``(5) reduce crime and disorder in and around public 
     housing through the expansion of community-oriented policing 
     activities and problem solving;
       ``(6) provide training, information services, and other 
     technical assistance to program participants; and
       ``(7) 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 may make 
     grants in accordance with the provisions of this chapter for 
     use in eliminating crime in and around public housing and 
     other federally assisted low-income housing projects to (1) 
     public housing agencies, and (2) private, for-profit and 
     nonprofit owners of federally assisted low-income housing. In 
     designing the program for grants under this chapter, the 
     Secretary shall consult with the Attorney General.''.
       (b) Eligible Activities.--
       (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11903(a)) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and around'' after ``used in'';
       (B) in paragraph (3), by inserting before the semicolon the 
     following: ``, including fencing, lighting, locking, and 
     surveillance systems'';
       (C) in paragraph (4), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) to investigate crime; and'';
       (D) in paragraph (6)--
       (i) by striking ``in and around public or other federally 
     assisted low-income housing projects''; and
       (ii) by striking ``and'' after the semicolon; and
       (E) by striking paragraph (7) and inserting the following 
     new paragraphs:
       ``(7) providing funding to nonprofit public housing 
     resident management corporations and resident councils to 
     develop security and crime prevention programs involving site 
     residents;
       ``(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- and problem-oriented policing involving 
     interaction with members of the community in proactive crime 
     control and prevention activities;
       ``(9) programs and activities for or involving youth, 
     including training, education, recreation and sports, career 
     planning, and entrepreneurship and employment activities and 
     after school and cultural programs; and
       ``(10) service programs for residents that address the 
     contributing factors of crime, including programs for job 
     training, education, drug and alcohol treatment, and other 
     appropriate social services.''.
       (2) Other pha-owned housing.--Section 5124(b) of the Anti-
     Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (ii) by striking ``paragraphs (1) through (7)'' and 
     inserting ``paragraphs (1) through (10)''; and
       (B) in paragraph (2), by striking ``drug-related'' and 
     inserting ``criminal''.
       (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11904) is amended to read as follows:

     ``SEC. 5125. GRANT PROCEDURES.

       ``(a) PHA's With 250 or More Units.--
       ``(1) Grants.--In each fiscal year, the Secretary shall 
     make a grant under this chapter from any amounts available 
     under section 5131(b)(1) for the fiscal year to each of the 
     following public housing agencies:
       ``(A) New applicants.--Each public housing agency that owns 
     or operates 250 or more public housing dwelling units and 
     has--
       ``(i) submitted an application to the Secretary for a grant 
     for such fiscal year, which includes a 5-year crime 
     deterrence and reduction plan under paragraph (2); and
       ``(ii) had such application and plan approved by the 
     Secretary.
       ``(B) Renewals.--Each public housing agency that owns or 
     operates 250 or more public housing dwelling units and for 
     which--
       ``(i) a grant was made under this chapter for the preceding 
     Federal fiscal year;
       ``(ii) the term of the 5-year crime deterrence and 
     reduction plan applicable to such grant includes the fiscal 
     year for which the grant under this subsection is to be made; 
     and
       ``(iii) the Secretary has determined, pursuant to a 
     performance review under paragraph (4), that during the 
     preceding fiscal year the agency has substantially fulfilled 
     the requirements under subparagraphs (A) and (B) of paragraph 
     (4).
       ``(2) 5-year crime deterrence and reduction plan.--Each 
     application for a grant under this subsection shall contain a 
     5-year crime deterrence and reduction plan. The plan shall 
     describe, for the public housing agency submitting the plan--
       ``(A) the nature of the crime problem in public housing 
     owned or operated by the public housing agency;
       ``(B) the building or buildings of the public housing 
     agency affected by the crime problem;
       ``(C) the impact of the crime problem on residents of such 
     building or buildings; and
       ``(D) the actions to be taken during the term of the plan 
     to reduce and deter such crime, which shall include actions 
     involving residents, law enforcement, and service providers.
     The term of a plan shall be the period consisting of 5 
     consecutive fiscal years, which begins with the first fiscal 
     year for which funding under this chapter is provided to 
     carry out the plan.
       ``(3) Amount.--In any fiscal year, the amount of the grant 
     for a public housing agency receiving a grant pursuant to 
     paragraph (1) shall be the amount that bears the same ratio 
     to the total amount made available under section 5131(b)(1) 
     as the total number of public dwelling units owned or 
     operated by such agency bears to the total number of dwelling 
     units owned or operated by all public housing agencies that 
     own or operate 250 or more public housing dwelling units that 
     are approved for such fiscal year.
       ``(4) Performance review.--For each fiscal year, the 
     Secretary shall conduct a performance review of the 
     activities carried out by each public housing agency 
     receiving a grant pursuant to this subsection to determine 
     whether the agency--
       ``(A) has carried out such activities in a timely manner 
     and in accordance with its 5-year crime deterrence and 
     reduction plan; and
       ``(B) has a continuing capacity to carry out such plan in a 
     timely manner.
       ``(5) Submission of applications.--The Secretary shall 
     establish such deadlines and requirements for submission of 
     applications under this subsection as the Secretary 
     determines appropriate for timely and orderly allocation and 
     disbursement of amounts made available for grants under this 
     subsection.
       ``(6) Review and determination.--The Secretary shall review 
     each application submitted under this subsection upon 
     submission and shall approve the application unless the 
     application and the 5-year crime deterrence and reduction 
     plan are inconsistent with the purposes of this chapter or 
     any requirements established by the Secretary or the 
     information in the application or plan is not substantially 
     complete. Upon approving or determining not to approve an 
     application and plan submitted under this subsection, the 
     Secretary shall notify the public housing agency submitting 
     the application and plan of such approval or disapproval.
       ``(7) Disapproval of applications.--If the Secretary 
     notifies an agency that the application and plan of the 
     agency is not approved, not later than the expiration of the 
     15-day period beginning upon such notice of disapproval, the 
     Secretary shall also notify the agency, in writing, of the 
     reasons for the disapproval, the actions that the agency 
     could take to comply with the criteria for approval, and the 
     deadlines for such actions.
       ``(8) Failure to approve or disapprove.--If the Secretary 
     fails to notify an agency of approval or disapproval of an 
     application and plan submitted under this subsection before 
     the expiration of the 60-day period beginning upon the 
     submission of the plan or fails to provide notice under 
     paragraph (7) within the 15-day period under such paragraph 
     to an agency whose application has been disapproved, the 
     application and plan shall be considered to have been 
     approved for purposes of this section.
       ``(b) PHA's With Fewer Than 250 Units and Owners of 
     Federally Assisted Low-Income Housing.--
       ``(1) Applications and plans.--To be eligible to receive a 
     grant under this chapter, a public housing agency that owns 
     or operates fewer than 250 public housing dwelling units or 
     an owner of federally assisted low-income housing shall 
     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such additional information as the 
     Secretary may require. The application shall include a plan 
     for addressing the problem of crime in and around the housing 
     for which the application is submitted, describing in detail 
     activities to be conducted during the fiscal year for which 
     the grant is requested.
       ``(2) Grants for pha's with fewer than 250 units.--In each 
     fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(2), make grants under this 
     chapter to public housing agencies that own or operate fewer 
     than 250 public housing dwelling units and have submitted 
     applications under paragraph (1) that the Secretary has 
     approved pursuant to the criteria under paragraph (4).
       ``(3) Grants for federally assisted low-income housing.--In 
     each fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(3), make grants under this 
     chapter to owners of federally assisted low-income housing 
     that have submitted applications under paragraph (1) that the 
     Secretary has approved pursuant to the criteria under 
     paragraphs (4) and (5).
       ``(4) Criteria for approval of applications.--The Secretary 
     shall determine whether to approve each application under 
     this subsection on the basis of--
       ``(A) the extent of the crime problem in and around the 
     housing for which the application is made;
       ``(B) the quality of the plan to address the crime problem 
     in the housing for which the application is made;
       ``(C) the capability of the applicant to carry out the 
     plan; and
       ``(D) the extent to which the tenants of the housing, the 
     local government, local community-based nonprofit 
     organizations, local tenant organizations representing 
     residents of neighboring projects that are owned or assisted 
     by the Secretary, and the local community support and 
     participate in the design and implementation of the 
     activities proposed to be funded under the application.
     In each fiscal year, the Secretary may give preference to 
     applications under this subsection for housing made by 
     applicants who received a grant for such housing for the 
     preceding fiscal year under this subsection or under the 
     provisions of this chapter as in effect immediately before 
     the date of the enactment of the Housing and Community 
     Development Act of 1994.
       ``(5) Additional criteria for federally assisted low-income 
     housing.--In addition to the selection criteria under 
     paragraph (4), the Secretary may establish other criteria for 
     evaluating applications submitted by owners of federally 
     assisted low-income housing, except that such additional 
     criteria shall be designed only to reflect--
       ``(A) relevant differences between the financial resources 
     and other characteristics of public housing authorities and 
     owners of federally assisted low-income housing; or
       ``(B) relevant differences between the problem of crime in 
     public housing administered by such public housing agencies 
     and the problem of crime in federally assisted low-income 
     housing.''.
       (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11905) is amended--
       (1) by striking paragraphs (1) and (2);
       (2) in paragraph (4), by striking ``section'' before 
     ``221(d)(4)'';
       (3) by redesignating paragraphs (3) and (4) (as so amended) 
     as paragraphs (1) and (2), respectively; and
       (4) by adding at the end the following new paragraph:
       ``(3) Public housing agency.--The term `public housing 
     agency' has the meaning given the term in section 3(b) of the 
     United States Housing Act of 1937.''.
       (e) Implementation.--Section 5127 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11906) is amended by striking 
     ``Cranston-Gonzalez National Affordable Housing Act'' and 
     inserting ``Housing and Community Development Act of 1994''.
       (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11907) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(a) Reports by Grantees.--The Secretary'';
       (2) by striking ``drug-related crime in'' and inserting 
     ``crime in and around'';
       (3) by striking ``described in section 5125(a)'' and 
     inserting ``for the grantee submitted under subsection (a) or 
     (b) of section 5125, as applicable''; and
       (4) by adding at the end the following new subsection:
       ``(b) Reports by Secretary.--For each fiscal year in which 
     the Secretary makes grants under this chapter, the Secretary 
     shall submit a report to the Congress describing the progress 
     achieved in crime deterrence and reduction in the public 
     housing and federally assisted low-income housing for which 
     such grant assistance has been provided. The report shall 
     include any recommendations of the Secretary for changes in 
     the program of assistance under this chapter.''.
       (g) Technical Assistance and Funding.--Chapter 2 of 
     subtitle C of title V of the Anti-Drug Abuse Act of 1988 is 
     amended by striking section 5130 (42 U.S.C. 11909) and 
     inserting the following new sections:

     ``SEC. 5130. TECHNICAL ASSISTANCE.

       ``(a) In General.--To the extent amounts are made available 
     under section 5131(c), the Secretary may provide training, 
     information services, and other technical assistance to 
     public housing agencies and other entities with respect to 
     their participation in the program under this chapter, which 
     shall include activities under subsection (b) of this 
     section. Such technical assistance may be provided directly 
     by the Secretary or indirectly pursuant to grants, contracts, 
     or cooperative agreements.
       ``(b) Use.--The Secretary may use amounts available for use 
     under this section--
       ``(1) to establish and operate 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;
       ``(2) to obtain assistance in establishing and managing 
     assessment and evaluation criteria and specifications and to 
     obtain the opinions of experts in relevant fields; and
       ``(3) upon the request of a public housing agency, to 
     assist the agency in evaluating the extent of the crime 
     problem in any public housing administered by the agency and 
     preparing a 5-year crime deterrence and reduction plan under 
     section 5125(a) or an application and plan under section 
     5125(b)(1), which assistance may include providing personnel 
     and funding to identify and secure local resources to assist 
     in deterring and reducing crime.
       ``(c) Priority.--In selecting entities to receive technical 
     assistance under this section, the Secretary shall give 
     priority to public housing agencies that have submitted 
     applications and plans under section 5125 that the Secretary 
     has determined do not meet the requirements for approval for 
     assistance under this chapter.

     ``SEC. 5131. FUNDING.

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this chapter $300,000,000 for 
     fiscal year 1995 and $325,000,000 for fiscal year 1996. Any 
     amount appropriated under this subsection shall remain 
     available until expended.
       ``(b) Allocation.--Of any amounts appropriated to carry out 
     this chapter in any fiscal year that remain after reserving 
     amounts for use under subsection (c)--
       ``(1) 85 percent shall be available only for assistance 
     pursuant to section 5125(a) to public housing agencies that 
     own or operate 250 or more public housing dwelling units;
       ``(2) 10 percent shall be available only for assistance 
     pursuant to section 5125(b)(2) to public housing agencies 
     that own or operate fewer than 250 public housing dwelling 
     units; and
       ``(3) 5 percent shall be available only for assistance to 
     federally assisted low-income housing pursuant to section 
     5125(b)(3).
       ``(c) Set-Aside for Technical Assistance.--Of any amount 
     made available in fiscal years 1994 and 1995 to carry out 
     this chapter, the Secretary shall use not more than 
     $10,000,000 in each such fiscal year to provide technical 
     assistance under section 5130.''.
       (h) Conforming Amendments.--The table of contents in 
     section 5001 of the Anti-Drug Abuse Act of 1988 (Public Law 
     100-690; 102 Stat. 4295) is amended--
       (1) by striking the item relating to the heading for 
     chapter 2 of subtitle C and inserting the following:

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

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

``Sec. 5122. Purposes.'';

       (3) by striking the item relating to section 5125 and 
     inserting the following new item:

``Sec. 5125. Grant procedures.'';

     and
       (4) by striking the item relating to section 5130 and 
     inserting the following new items:

``Sec. 5130. Technical Assistance.
``Sec. 5131. Funding.''.

     SEC. 182. LOW-INCOME HOUSING PRESERVATION.

       (a) Assistance and Incentives.--Section 234 of the Housing 
     and Community Development Act of 1987 (12 U.S.C. 4124) is 
     amended to read as follows:

     ``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     for assistance and incentives authorized under this subtitle 
     $400,000,000 for fiscal year 1995 and $450,000,000 for fiscal 
     year 1996.
       ``(b) Grants.--Subject to approval in appropriation Acts, 
     not more than $40,000,000 of the amounts made available under 
     subsection (a) for fiscal year 1995, and not more than 
     $40,000,000 of the amounts made available under subsection 
     (a) for fiscal year 1996, shall be available for grants under 
     section 221(d)(2).''.
       (b) Technical Assistance and Capacity Building.--The first 
     sentence of section 257 of the Housing and Community 
     Development Act of 1987 (12 U.S.C. 4147) is amended to read 
     as follows: ``The Secretary shall use not more than 
     $20,000,000 of the amounts made available under section 
     234(a) for fiscal year 1995, and not more than $20,000,000 of 
     the amounts made available under section 234(a) for fiscal 
     year 1996, to carry out this subtitle.''.
       (c) Repeal of Rent Limitations.--The National Housing Act 
     is amended--
       (1) in section 221 (12 U.S.C. 1715l), by striking 
     subsection (l).
       (2) in section 236(f) (12 U.S.C. 1715z-1(f)), by striking 
     paragraph (6).
       (d) Equity Loans.--Section 241(f)(2)(B)(ii) of the National 
     Housing Act (12 U.S.C. 1715z-6(f)(2)(B)(ii)) is amended by 
     inserting ``(excluding the amount of rehabilitation costs 
     required by the plan of action and related charges)'' after 
     ``loan amount''.
       (e) Treatment as Eligible Housing.--Notwithstanding section 
     229(1)(B) of the Housing and Community Development Act of 
     1987, the Northwest Towers project, located at 1170 West 
     Erie, in Chicago, Illinois, shall be considered eligible low-
     income housing for purposes of title II of such Act, except 
     that--
       (1) the Secretary of Housing and Urban Development may 
     approve a plan of action under such title for the project 
     only if the plan of action (A) provides for transfer of the 
     ownership of the project (i) in accordance with section 226 
     of such title to a resident council of the project, or (ii) 
     in accordance with section 220 of such title to a community-
     based nonprofit organization approved by the residents of the 
     project, and (B) otherwise complies with the requirements of 
     such title; and
       (2) the Secretary of Housing and Urban Development shall 
     reduce the aggregate amount of any incentives otherwise to be 
     provided under such title for the project by the amount of 
     any outstanding indebtedness on the loan for the project 
     under section 201 of the Housing and Community Development 
     Amendments of 1978.

     SEC. 183. FLEXIBLE SUBSIDY PROGRAM.

       (a) Authorization of Appropriations.--Section 201(j)(5) of 
     the Housing and Community Development Amendments of 1978 (12 
     U.S.C. 1715z-1a(j)(5)) is amended to read as follows:
       ``(5) There are authorized to be appropriated for 
     assistance under the flexible subsidy fund not to exceed 
     $50,000,000 for fiscal year 1995 and $55,000,000 for fiscal 
     year 1996.''.
       (b) Allocation.--Section 201(n)(2)(B)(ii) of the Housing 
     and Community Development Amendments of 1978 (12 U.S.C. 
     1715z-1a(n)(2)(B)(ii)) is amended by inserting ``and 
     federally assisted'' before ``mortgages''.
       (c) Use of Section 236 Rental Assistance Fund Amounts.--
     Section 236(f)(3) of the National Housing Act (12 U.S.C. 
     1715z-1(f)(3)) is amended by striking ``September 30, 1994'' 
     and inserting ``September 30, 1996''.

     SEC. 184. YOUTHBUILD PROGRAM.

       (a) Authorization of Appropriations.--Section 402 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12870), as amended by the preceding provisions of this title, 
     is amended by inserting after subsection (a) the following 
     new subsection:
       ``(b) Youthbuild Program.--There are authorized to be 
     appropriated for activities under subtitle D $50,000,000 for 
     fiscal year 1995 and $50,000,000 for fiscal year 1996. Any 
     amounts appropriated pursuant to this subsection shall remain 
     available until expended.''.
       (b) Eligible Activities.--Section 454(b) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899c(b)) is amended--
       (1) in paragraph (2), by striking ``Acquisition'' and all 
     that follows through ``facilities'' and inserting 
     ``Acquisition, rehabilitation, or acquisition and 
     rehabilitation of housing and related facilities, or 
     construction of new housing and related facilities (including 
     community facilities designed to serve the needs of low- and 
     very low-income families),'';
       (2) by striking paragraph (6); and
       (3) by redesignating paragraphs (7) and (8) as paragraphs 
     (6) and (7), respectively.
       (c) Priority for Applicants Supplementing Grant Amounts.--
     Section 454(e) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12899c(e)) is amended to read as 
     follows:
       ``(e) Priority for Applicants Who Obtain Program Funds From 
     Other Sources.--The Secretary shall give priority in the 
     award of grants under this section to applicants to the 
     extent that they have obtained amounts or in-kind 
     contributions, or commitments to provide such amounts or 
     contributions, from Federal, State, local, or private sources 
     other than assistance under this subtitle in an amount 
     constituting not less than 10 percent of the total budget of 
     the applicant for the Youthbuild program, that will be used 
     for carrying out any aspect of the Youthbuild program of the 
     applicant.''.
       (d) Residential Rental Housing Requirements.--Section 
     455(a) of the Cranston-Gonzalez National Affordable Housing 
     Act (42 U.S.C. 12899d(a)) is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     after ``subtitle'' the following: ``for costs such as 
     construction, rehabilitation, and acquisition''; and
       (2) in paragraph (1), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) at least 80 percent of the units shall be occupied, 
     or available for occupancy, by individuals and families with 
     incomes that do not exceed 50 percent of the area median 
     income, adjusted for family size; and''.
       (e) Reservation of Funds.--Section 458(d) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899g(d)) is amended by inserting before the period at the 
     end the following: ``and not more than 1 percent of such 
     available amounts to implement, pursuant to subsection (a) of 
     this section, a management information system to gather and 
     analyze information necessary to assess the quality and 
     effects of the program under this subtitle and to monitor 
     Youthbuild programs funded under this subtitle''.
       (f) Program Name.--The heading for subtitle D of title IV 
     of the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12899 et seq.) is amended to read as follows:
                      ``Subtitle D--Youthbuild''.

     SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY HOUSING 
                   PROPERTIES.

       Section 203(g) of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1701z-11(g)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and'';
       (3) by redesignating paragraphs (2) and (3) (as so amended) 
     as paragraphs (3) and (4), respectively; and
       (4) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) upon the conclusion of the first year of such 2-year 
     period, the Secretary shall examine the income and rent of 
     the family and of other very low-income families who are 
     preexisting tenants of the project and the rents charged for 
     units in the project and for similar units in the market area 
     in which the project is located, to determine whether upon 
     the expiration of such 2-year period the rent charged for the 
     unit occupied by the family and for similar units in the same 
     market area will be significantly more than the amount 
     charged for the unit occupied by the family during such 2-
     year period;''; and
       (5) by adding at the end the following new paragraph:
       ``(5) if the Secretary determines pursuant to paragraph (2) 
     that, upon the expiration of the 2-year period, the family 
     will not be able to rent a unit in the project or a similar 
     unit in the market area in which the project is located 
     without paying in rent significantly more than the amount 
     charged for the unit occupied by the family during such 2-
     year period, the Secretary shall, to the extent budget 
     authority is available, provide tenant-based assistance on 
     behalf of the family under a contract under section 8 of the 
     United States Housing Act of 1937 having a 5-year term.''.

     SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND EVICTIONS 
                   IN PUBLIC AND ASSISTED HOUSING.

       Not later than December 31, 1994, the Secretary of Housing 
     and Urban Development shall issue guidelines for owners and 
     managers of public and assisted housing with respect to 
     screening applicants for occupancy in such housing, 
     admissions to such housing, and evictions of residents of 
     such housing who are users or former users of illegal drugs 
     or who violate lease provisions because of alcohol use. The 
     Secretary shall issue such guidelines based on the report to 
     the Congress issued by the Public and Assisted Housing 
     Occupancy Task Force on April 7, 1994, pursuant to section 
     643(a)(7) of the Housing and Community Development Act of 
     1992.

     SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEMONSTRATION.

       (a) In General.--The Secretary of Housing and Urban 
     Development (in this section referred to as the 
     ``Secretary'') shall carry out, through consortia of units of 
     general local government, a demonstration program to make 
     assisted housing available in 3 metropolitan areas on a 
     metropolitan, area-wide basis.
       (b) Purpose.--The demonstration program under this section 
     shall be designed to determine the most effective manner to--
       (1) affirmatively further fair housing and address the 
     problem of racial segregation in metropolitan areas;
       (2) achieve the goal of overcoming spatial separation and 
     segregation of families by race, which shall include testing 
     the effect of filling vacancies in assisted housing by use of 
     a consolidated waiting list;
       (3) enlist cooperation of units of general local 
     government, public housing agencies, and private owners of 
     assisted housing in achieving such goals;
       (4) make public housing facilitate social and economic 
     mobility;
       (5) eliminate housing discrimination; and
       (6) accomplish related objectives determined by the 
     Secretary.
       (c) Eligibility of Consortia.--The Secretary shall select 
     the consortia of units of general local government to 
     participate in the demonstration program on a competitive 
     basis and make a grant to each consortia selected. The 
     Secretary may select only consortia that demonstrate to the 
     Secretary, as the Secretary shall require, that a sufficient 
     number of units of general local government, public housing 
     agencies, and private owners of assisted housing are 
     committed to participate in the demonstration to make the 
     demonstration feasible, which shall include commitment to 
     comply with alternative program requirements specified by the 
     Secretary.
       (d) Duration.--The demonstration program shall be carried 
     out for a period of 3 years with respect to each site 
     selected.
       (e) Waivers.--The Secretary may waive, or specify 
     alternative requirements for, any provision of any statute or 
     regulation that the Secretary administers if the Secretary 
     finds that the waiver or alternative requirement (1) is 
     necessary to facilitate the demonstration program, and (2) 
     would not be inconsistent with the overall purpose of the 
     statute or regulation affected. In no event may the Secretary 
     waive, or specify alternative requirements for, statutory 
     requirements related to nondiscrimination, fair housing, 
     labor standards, or the environment, except that the 
     Secretary may waive affirmative marketing requirements for 
     participants in the demonstration program.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated for the costs related to regional 
     planning, housing counseling, development of a model 
     consolidated waiting list, and administration under the 
     demonstration established by this section, such sums as may 
     be necessary for each of fiscal years 1995 and 1996.
                 TITLE II--HOME INVESTMENT PARTNERSHIPS

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 205 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12724) is amended 
     to read as follows:

     ``SEC. 205. AUTHORIZATION.

       ``There are authorized to be appropriated to carry out this 
     title $1,775,000,000 for fiscal year 1995, and $2,000,000,000 
     for fiscal year 1996, of which--
       ``(1) not more than $25,000,000 for fiscal year 1995, and 
     $25,000,000 for fiscal year 1996, shall be for community 
     housing partnership activities authorized under section 233; 
     and
       ``(2) not more than $22,000,000 for fiscal year 1995, and 
     $22,000,000 for fiscal year 1996, shall be for activities in 
     support of State and local housing strategies authorized 
     under subtitle C.''.
       (b) Notice of Funding Availability.--For each of fiscal 
     years 1995 and 1996, the Secretary shall cause to be 
     published in the Federal Register notice of the availability 
     of any amounts made available under section 205(1) of the 
     Cranston-Gonzalez National Affordable Housing Act (as amended 
     by subsection (a)) that are available for community housing 
     partnership activities authorized under section 233. Each 
     such notice shall be published not later than the expiration 
     of the 90-day period beginning on the date that amounts are 
     appropriated for each of such fiscal years to carry out the 
     program under title II of the Cranston-Gonzalez National 
     Affordable Housing Act.

     SEC. 202. ELIGIBLE USES OF INVESTMENT.

       Section 212(a)(1) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12742(a)(1)) is amended by 
     striking ``financing costs'' and inserting ``costs of 
     financing (including credit enhancements, loan guarantees, 
     and debt service reserves)''.

     SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUSING.

       Section 215(a) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12742(a)) is amended--
       (1) in paragraph (1)(A), by striking ``bears rents not 
     greater than'' and inserting ``is occupied by tenants who pay 
     as rent'';
       (2) in paragraph (3), by inserting after the period at the 
     end of the first sentence the following new sentence: ``A 
     tenant occupying a rental unit assisted with amounts provided 
     under this title shall be considered to be a very low-income 
     family until the household's income increases to more than 
     140 percent of the applicable income limitation under 
     paragraph (1)(B).''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Rental subsidies.--Notwithstanding paragraph (1), 
     housing shall not be considered to fail to qualify as 
     affordable housing under this title because it includes units 
     for which--
       ``(A) payments are made under section 8 of the United 
     States Housing Act of 1937 or any comparable rental 
     assistance program; and
       ``(B) because of increases in the income of tenants of the 
     housing, the rent paid by the tenants under the assistance 
     program with respect to such unit exceeds 30 percent of the 
     adjusted income of a family whose income equals 65 percent of 
     the median income for the area.''.

     SEC. 204. REPAYMENT OF INVESTMENT.

       Section 219 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12749) is amended by adding at the end 
     the following new subsection:
       ``(d) Repayment of Matching Amounts.--Amounts provided by a 
     participating jurisdiction pursuant to section 220 for 
     housing not assisted under this title shall be recognized for 
     purposes of section 220(a), notwithstanding that such amounts 
     are not repaid to the jurisdiction's HOME Investment Trust 
     Fund, if such amounts are drawn from an affordable housing 
     program operated by the jurisdiction, repaid to the program, 
     and available for use only for the program or for providing 
     housing that qualifies as affordable housing.''.

     SEC. 205. MATCHING REQUIREMENTS.

       Section 220 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12750) is amended--
       (1) in the first sentence of subsection (a), by inserting 
     ``the participating jurisdiction certifies'' before 
     ``qualifies''; and
       (2) in subsection (b)(1)--
       (A) in subparagraph (A), by striking ``or'';
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) is made with respect to housing that is substantially 
     equivalent to housing that qualifies as affordable housing 
     under section 215.''.

     SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES.

       Subtitle C of title II of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12781 et seq.) is amended 
     by adding at the end the following new section:

     ``SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.

       ``The Secretary may use amounts available under this 
     subtitle to provide grants to States, units of general local 
     government, and metropolitan, non-metropolitan, and regional 
     planning agencies, for the following activities:
       ``(1) Urban design and the development of public amenities 
     in low-income neighborhoods that serve as a catalyst for the 
     renewal of the neighborhood.
       ``(2) Development and implementation of comprehensive plans 
     that focus on local and metropolitan strategies which create 
     sustainable community development at the neighborhood, city, 
     and metropolitan level.
       ``(3) Expanding economic opportunities for low- and 
     moderate-income families through areawide planning approaches 
     that provide educational and employment opportunities for 
     such persons.
       ``(4) Coordinated efforts that stimulate fair housing, 
     further the deconcentration of the poor and minorities, 
     reduce the isolation of income groups within communities, 
     remove barriers to affordable housing development, and expand 
     housing opportunities for low- and moderate-income families.
       ``(5) The conservation of important historic, visual, and 
     cultural features.
       ``(6) The development and implementation of comprehensive 
     approaches that integrate poorer, inner-city neighborhoods 
     into the greater metropolitan region.
       ``(7) Any other activities the Secretary determines will 
     further the purposes of this section.''.

     SEC. 207. LABOR REQUIREMENTS.

       Section 286(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12836(b)) is amended by adding at the 
     end the following new sentence: ``Subsection (a) shall not 
     apply in the case of housing for which a site is acquired, 
     but which is not constructed, using funds made available 
     under this subtitle.''.
                 TITLE III--SUPPORTIVE HOUSING PROGRAMS

     SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND 
                   FOR PERSONS WITH DISABILITIES.

       Section 601 of the Housing and Community Development Act of 
     1992 (Public Law 102-550; 106 Stat. 3802) is amended by 
     striking subsection (a) and inserting the following new 
     subsection:
       ``(a) Aggregate Funding.--There are authorized to be 
     appropriated for the purpose of providing assistance in 
     accordance with section 202 of the Housing Act of 1959 and 
     section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act, $1,948,000,000 for fiscal year 1995 and 
     $1,954,000,000 for fiscal year 1996.''.

     SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.

       (a) Elder Cottage Housing Units.--Section 202(b) of the 
     Housing Act of 1959 (12 U.S.C. 1701q(b)) is amended by 
     inserting after the second sentence the following new 
     sentence: ``Such assistance may also be used to finance the 
     acquisition and installation of elder cottage housing units 
     that are small, freestanding, barrier-free, energy efficient, 
     removable and designed to be installed adjacent to existing 
     1- to 4-family dwellings and are used as supportive housing 
     for the elderly in accordance with this section.''.
       (b) Definition of ``Frail Elderly''.--Section 202(k)(3) of 
     the Housing Act of 1959 (12 U.S.C. 1701q(k)(3)) is amended by 
     striking the first sentence and inserting the following new 
     sentences: ``The term `frail elderly' means an elderly person 
     whose level of functional disability jeopardizes her or his 
     ability to continue to live independently. The Secretary 
     shall, to the extent possible, develop assessment measures of 
     functional disability that are appropriate for purposes of 
     this section and will provide for effective use of the 
     program under this section with other programs providing 
     supportive services.''.
       (c) Repeal of Demonstration.--Section 806 of the Cranston-
     Gonzalez National Affordable Housing Act (12 U.S.C. 1701q 
     note) is hereby repealed.

     SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

       (a) PHA's as Eligible Sponsors.--Section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     8013) is amended--
       (1) in the first sentence of subsection (f), by inserting 
     ``and public housing agencies'' after ``private nonprofit 
     organizations''; and
       (2) in subsection (k)--
       (A) in paragraph (5), by striking ``private nonprofit 
     organization'' and inserting ``eligible sponsor''; and
       (B) by adding at the end the following new paragraph:
       ``(10) The term `eligible sponsor' means--
       ``(A) in the case of capital advances under subsection 
     (b)(2) and project rental assistance under subsections (b)(2) 
     and (3)--
       ``(i) a private nonprofit organization; and
       ``(ii) a public housing agency, but only in the case of a 
     jurisdiction for which the Secretary determines that, during 
     the 3-year period ending upon the date of the application of 
     the agency for assistance under subsection (b)(2) or (3)--

       ``(I) no private nonprofit organization has submitted an 
     application under subsection (f) for assistance for a project 
     located in such area; and
       ``(II) no private nonprofit organization has had such an 
     application approved for a project located in such area; and

       ``(B) in the case of tenant-based rental assistance under 
     subsection (b)(1)--
       ``(i) a private nonprofit organization; and
       ``(ii) a public housing agency, but only to the extent that 
     such assistance is used for providing assistance in 
     accordance with an allocation plan for the agency under 
     section 7(f) of the United States Housing Act of 1937.''.
       (b) Rental Assistance for Existing Buildings.--Section 811 
     of the Cranston-Gonzalez National Affordable Housing Act is 
     amended--
       (1) in subsection (d)(2), by adding at the end the 
     following new sentence: ``The Secretary may enter into 
     contracts with private, nonprofit organizations to provide 
     project rental assistance for supportive housing for persons 
     with disabilities, regardless of whether the housing is 
     developed with capital advances under this section.'';
       (2) in subsection (e)(1), by inserting ``with capital 
     advances'' after ``assisted'';
       (3) by striking the first 2 sentences of subsection (e)(2) 
     and inserting the following new sentences: ``The initial term 
     of a contract entered into under subsection (d)(2) shall be 
     240 months for housing developed with a capital advance, and 
     shall be not more than 60 months for housing not developed 
     with a capital advance. The Secretary shall, to the extent 
     approved in appropriation Acts, extend any expiring contracts 
     for a term of not less than 60 months.'';
       (4) in subsection (g)(1), by inserting ``(if applicable)'' 
     after ``develop'';
       (5) in subsections (g)(3) and (g)(5), by inserting ``design 
     or'' before ``proposed'' each place it appears;
       (6) in subsection (j), by striking paragraph (3) and 
     inserting the following new paragraph:
       ``(3) Site control.--
       ``(A) Capital advances.--In the case of housing to be 
     assisted with capital advances under this section, an 
     applicant may obtain ownership or control of a suitable site 
     different from the site specified in the initial application. 
     If an applicant fails to obtain ownership or control of the 
     site within 1 year after notification of an award for 
     assistance, the assistance shall be recaptured and 
     reallocated.
       ``(B) Project rental assistance.--In the case of housing to 
     be assisted only with project rental assistance, the 
     applicant shall have ownership or control of a suitable site 
     at the time of application. The Secretary may approve a 
     change in site at any time from the date the application is 
     submitted to the expiration date of the rental assistance 
     contract.'';
       (7) in subsection (j)(4), by striking ``The'' and inserting 
     the following: ``In the case of housing assisted with capital 
     advances under this section, the'';
       (8) in the second sentence of subsection (k)(1), by 
     striking ``the development of'';
       (9) in subsection (k)(5), by inserting before the period at 
     the end the following: ``, or that receives rental assistance 
     under this section to operate a project for supportive 
     housing for persons with disabilities''; and
       (10) in subsection (m)(3), by striking ``(1)'' and 
     inserting ``(2)''.
       (c) Authority to Provide Assistance.--Section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act is 
     amended--
       (1) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) General Authority.--The Secretary may provide 
     assistance to eligible sponsors to expand the supply of 
     supportive housing for persons with disabilities. Such 
     assistance shall be provided as--
       ``(1) tenant-based rental assistance on behalf of eligible 
     persons with disabilities, in accordance with subsection 
     (d)(4);
       ``(2) capital advances in accordance with subsection 
     (d)(1), together with contracts for project rental assistance 
     in accordance with subsection (d)(2); or
       ``(3) contracts for project rental assistance in accordance 
     with subsection (d)(2).'';
       (2) in subsection (d)(1), by adding at the end the 
     following new sentences: ``Capital advances may be used to 
     finance the acquisition, acquisition and moderate 
     rehabilitation, construction, reconstruction, or moderate or 
     substantial rehabilitation of housing, including the 
     acquisition from the Resolution Trust Corporation, to be used 
     as supportive housing for persons with disabilities and may 
     include real property acquisition, site improvement, 
     conversion, demolition, relocation, and other expenses that 
     the Secretary determines are necessary to expand the supply 
     of supportive housing for persons with disabilities. Such 
     assistance may also be used to finance the acquisition and 
     installation of cottage housing units that are small, 
     freestanding, barrier-free, energy efficient, removable and 
     designed to be installed adjacent to existing 1- to 4-family 
     dwellings and are used as supportive housing for the persons 
     with disabilities in accordance with this section.'';
       (3) in subsections (d)(3), (e)(1), and (f), by inserting 
     ``or (3)'' after ``subsection (b)(2)'' each place it appears; 
     and
       (4) by striking paragraph (4) of subsection (d) and 
     inserting the following new paragraph:
       ``(4) Tenant-based rental assistance.--
       ``(A) Administration.--Tenant-based rental assistance that 
     is provided under subsection (b)(1) shall be administered 
     under the same rules governing rental assistance made 
     available under section 8 of the United States Housing Act of 
     1937.
       ``(B) Public housing agencies.--A public housing agency may 
     provide tenant-based rental assistance under subsection 
     (b)(1) only if the public housing agency has submitted, and 
     had approved, an allocation plan under section 7(f) of the 
     United States Housing Act of 1937 and any such assistance 
     made available to a public housing agency shall be provided 
     by the agency in accordance with such allocation plan. In 
     determining the amount of assistance provided under 
     subsection (b)(1) for a public housing agency, the Secretary 
     shall consider the needs of the agency as described in the 
     allocation plan.''.
       (d) Technical Changes.--Section 811(k)(6) of the Cranston-
     Gonzalez National Affordable Housing Act is amended by 
     striking subparagraph (A) and inserting the following new 
     subparagraph:
       ``(A) that has received tax-exempt status under section 
     501(c)(3) or (4) of the Internal Revenue Code of 1986;''.

     SEC. 304. REVISED CONGREGATE SERVICES.

       (a) Authorization of Appropriations.--Section 802(n)(1) of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 8011(n)(1)) is amended by striking the matter 
     preceding subparagraph (A) and inserting the following:
       ``(1) Authorization and use.--There are authorized to be 
     appropriated to carry out this section $25,000,000 for fiscal 
     year 1995, and $26,000,000 for fiscal year 1996, of which not 
     more than--''.
       (b) Meal Fees and Matching Amounts.--Section 802 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     8011) is amended--
       (1) in subparagraph (A) of subsection (d)(7), by striking 
     ``The fees for meals shall be in the following amounts:'' and 
     all that follows through the end of the subparagraph; and
       (2) in subsection (i)(1)--
       (A) in subparagraph (A)(i), by striking ``50 percent'' and 
     inserting ``25 percent'';
       (B) in subparagraph (A)(ii), by striking ``40 percent'' and 
     inserting ``65 percent''; and
       (C) in subparagraph (C), by striking ``10 percent'' and 
     inserting ``25 percent''.
       (c) Definition of ``Frail Elderly''.--Section 802(k)(8) of 
     the Cranston-Gonzalez National Affordable Housing Act is 
     amended by striking the first sentence and inserting the 
     following new sentences: ``The term `frail elderly' means an 
     elderly person whose level of functional disability 
     jeopardizes her or his ability to continue to live 
     independently. The Secretary shall, to the extent possible, 
     develop assessment measures of functional disability that are 
     appropriate for purposes of this section and will provide for 
     effective use of the program under this section with other 
     programs providing supportive services.''.

     SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY 
                   INDEPENDENCE.

       (a) Section 8 Assistance.--The first sentence of section 
     803(j) of the Cranston-Gonzalez National Affordable Housing 
     Act (42 U.S.C. 8012(j)) is amended to read as follows: ``The 
     budget authority available under section 5(c) of the United 
     States Housing Act of 1937 for assistance under section 8 of 
     such Act is authorized to be increased by $25,000,000 on or 
     after October 1, 1994, and by $25,000,000 on or after October 
     1, 1995.''.
       (b) Supportive Services Authorization.--The first sentence 
     of section 803(k) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 8012(k)) is amended to read 
     as follows: ``There are authorized to be appropriated for the 
     Secretary to carry out the responsibilities for supportive 
     services under the demonstrations under this section 
     $7,000,000 to become available in fiscal year 1995, and 
     $7,000,000 to become available in fiscal year 1996.''.
       (c) Supportive Services Contributions.--Section 803(c)(1) 
     of the Cranston-Gonzalez National Affordable Housing Act is 
     amended--
       (1) in subparagraph (A), by striking ``40 percent'' and 
     inserting ``65 percent''; and
       (2) in subparagraph (B), by striking ``50 percent'' and 
     inserting ``25 percent''.
       (d) Definition of ``Frail Elderly''.--Section 803(g)(3) of 
     the Cranston-Gonzalez National Affordable Housing Act is 
     amended by striking the first sentence and inserting the 
     following new sentences: ``The term `frail elderly person' 
     means an elderly person whose level of functional disability 
     jeopardizes her or his ability to continue to live 
     independently. The Secretary shall, to the extent possible, 
     develop assessment measures of functional disability that are 
     appropriate for purposes of this section and will provide for 
     effective use of the program under this section with other 
     programs providing supportive services.''.
       (e) Amendment to Heading.--Section 803 of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is 
     amended by striking the section designation and heading and 
     inserting the following:

     ``SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY 
                   INDEPENDENCE.''.

     SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

       (a) Authorization of Appropriations.--Section 863 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12912) is amended to read as follows:

     ``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subtitle $212,000,000 for fiscal year 1995 and $225,000,000 
     for fiscal year 1996.''.
       (b) Technical Assistance.--Section 854(c)(3) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12903(c)(3)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new clause:
       ``(iii) nonprofit organizations that provide technical 
     assistance on a national, regional, or State-wide basis to 
     nonprofit organizations carrying out eligible activities 
     under section 855 for eligible persons, to provide such 
     technical assistance, except that not more than 2 percent of 
     the amounts available in any fiscal year for allocation under 
     this paragraph shall be used as provided in this clause.''; 
     and
       (2) in subparagraph (B), by striking ``this paragraph'' and 
     inserting ``clauses (i) and (ii) of subparagraph (A)''.
       (c) Cooperation.--
       (1) In general.--Section 856(c) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12905(c)) is 
     amended by striking ``The recipient'' and all that follows 
     and inserting the following: ``The recipient shall establish 
     and implement a process for ensuring coordination and 
     community input in planning for and providing services 
     assisted with amounts provided under this subtitle. The 
     planning process shall include consultation and coordination 
     with the agencies of the relevant State and local governments 
     responsible for services for eligible persons in the area 
     served by the applicant and with other public and private 
     organizations and agencies providing services for such 
     eligible persons (including individuals with human 
     immunodeficiency virus disease), including community-based 
     and AIDS service organizations, providers of social services, 
     providers of mental health care, providers of substance abuse 
     treatment services, nonprofit providers of housing for 
     eligible persons, and affected communities.''.
       (2) Application.--Section 854(d) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12903(d)) is 
     amended--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) by redesignating paragraph (6) as paragraph (7); and
       (C) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) a description of the activities to be undertaken in 
     fulfilling the requirements under section 856(c); and''.
       (d) Administrative Expenses.--Section 856(g)(2) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12905(g)(2)) is amended--
       (1) by striking ``title'' and inserting ``subtitle''; and
       (2) by striking ``, including the costs of staff necessary 
     to carry out eligible activities''.

     SEC. 307. SERVICE COORDINATORS.

       (a) Public Housing.--Section 9 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437g) is amended in subsection 
     (a)(1)(B)(ii)--
       (1) in the 1st sentence, by striking ``Annual'' and all 
     that follows through ``such project,'' and inserting ``To the 
     extent amounts are made available pursuant to section 5(c) 
     for carrying out this clause, the Secretary may increase the 
     annual contributions provided under this section to any 
     public housing agency for any project to provide''; and
       (2) by striking the last 2 sentences.
       (b) Other Federally Assisted Multifamily Housing.--Section 
     676(c) of the Housing and Community Development Act of 1992 
     (42 U.S.C. 13632(c)) is amended to read as follows:
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this section 
     such sums as may be necessary for each of fiscal years 1995 
     and 1996.''.
       TITLE IV--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET
       Subtitle A--Mortgage Insurance and Loan Guarantee Programs

     SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

       Section 531(b) of the National Housing Act (12 U.S.C. 
     1735f-9(b)) is amended to read as follows:
       ``(b) Notwithstanding any other provision of law and 
     subject only to the absence of qualified requests for 
     insurance, to the authority provided in this Act, and to the 
     limitation in subsection (a), the Secretary shall enter into 
     commitments to insure mortgages under this Act with an 
     aggregate principal amount of $105,000,000,000 during fiscal 
     year 1995 and $91,000,000,000 during fiscal year 1996.''.

     SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD.

       Section 202(b)(11) of the National Housing Act (12 U.S.C. 
     1708(b)(11)) is amended by striking ``January 1, 1995.'' and 
     inserting ``January 1, 1997.''.

     SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SINGLE FAMILY 
                   MORTGAGES.

       Subparagraph (A) of the first sentence of section 203(b)(2) 
     of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is 
     amended by striking clause (ii) and inserting the following 
     new clause:
       ``(ii) 85 percent of the dollar amount limitation 
     determined under section 305(a)(2) of the Federal Home Loan 
     Mortgage Corporation Act (as adjusted annually under such 
     section) for a residence of the applicable size;''.

     SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SINGLE FAMILY 
                   MORTGAGE INSURANCE.

       Subparagraph (A) of the first sentence of section 203(b)(2) 
     of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is 
     amended by striking ``the dollar amount limitation in effect 
     under this section for the area on May 12, 1992'' and 
     inserting the following: ``50 percent of the dollar amount 
     limitation determined under section 305(a)(2) of the Federal 
     Home Loan Mortgage Corporation Act (as adjusted annually 
     under such section) for a residence of the applicable size''.

     SEC. 405. ELIMINATION OF RESTRICTIONS REGARDING NEW 
                   CONSTRUCTION.

       (a) In General.--Section 203(b)(2) of the National Housing 
     Act (12 U.S.C. 1709(b)(2)) is amended, in the matter 
     following subparagraph (B)--
       (1) in the 1st undesignated paragraph, by striking 
     ``Notwithstanding any other provision of this section,'' and 
     all that follows through ``beginning of construction.''; and
       (2) by striking the 2d undesignated paragraph (relating to 
     mortgage insurance amounts for residences having solar energy 
     systems).
       (b) Repeal of Authority to Expend Amounts From Insurance 
     Fund to Correct Substantial Defects.--Section 518 of the 
     National Housing Act (12 U.S.C. 1735b) is hereby repealed.

     SEC. 406. AUTHORITY TO USE AMOUNTS BORROWED FROM FAMILY 
                   MEMBERS FOR DOWNPAYMENTS.

       (a) In General.--Section 203(b)(9) of the National Housing 
     Act (12 U.S.C. 1709(b)(9)) is amended by inserting before the 
     period at the end the following: ``: Provided further, That 
     for purposes of this paragraph, the Secretary shall consider 
     as cash or its equivalent any amounts borrowed from a family 
     member (as such term is defined in section 201), subject only 
     to the requirements that, in any case in which the repayment 
     of such borrowed amounts is secured by a lien against the 
     property, such lien shall be subordinate to the mortgage and 
     the sum of the principal obligation of the mortgage and the 
     obligation secured by such lien may not exceed 100 percent of 
     the appraised value of the property plus any initial service 
     charges, appraisal, inspection, and other fees in connection 
     with the mortgage''.
       (b) Definition of Family Member.--Section 201 of the 
     National Housing Act (12 U.S.C. 1707) is amended by adding at 
     the end the following new subsections:
       ``(e) The term `family member' means, with respect to a 
     mortgagor under such section, a child, parent, or grandparent 
     of the mortgagor (or the mortgagor's spouse). In determining 
     whether any of the relationships referred to in the preceding 
     sentence exist, a legally adopted son or daughter of an 
     individual (and a child who is a member of an individual's 
     household, if placed with such individual by an authorized 
     placement agency for legal adoption by such individual), and 
     a foster child of an individual, shall be treated as a child 
     of such individual by blood.
       ``(f) The term `child' means, with respect to a mortgagor 
     under such section, a son, stepson, daughter, or stepdaughter 
     of such mortgagor.''.

     SEC. 407. INDEMNIFICATION FOR MULTIFAMILY HOUSING PROJECT 
                   MANAGERS.

       Section 207(l) of the National Housing Act (12 U.S.C. 
     1713(l)) is amended by inserting before the period at the end 
     the following: ``: Provided further, That, for properties 
     acquired by the Secretary under this section and for 
     properties secured by any mortgage assigned and transferred 
     to or held by the Secretary, the Secretary may indemnify 
     management contractors against claims by third persons for 
     death, bodily injury, or loss of or damage to property on 
     such terms as the Secretary determines appropriate''.

     SEC. 408. EXTENSION OF MULTIFAMILY HOUSING MORTGAGE AUCTION 
                   PROVISIONS.

       The first sentence of section 221(g)(4)(C)(viii) of the 
     National Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is 
     amended by striking ``September 30, 1995'' and inserting 
     ``December 31, 2005''.

     SEC. 409. STREAMLINED REFINANCING FOR HUD-HELD MORTGAGES.

       (a) In General.--Section 223(a) of the National Housing Act 
     (12 U.S.C. 1715n) is amended--
       (1) in paragraph (7), by striking the colon preceding 
     ``Provided further,'' and all that follows through ``and the 
     mortgagee'';
       (2) by redesignating paragraph (8) as paragraph (9);
       (3) by inserting after paragraph (7) the following new 
     paragraph:
       ``(8) given to refinance a mortgage held by the Secretary, 
     upon such terms and conditions as the Secretary may 
     prescribe, covering property on which there is located a 1- 
     to 4-family residence, or a 1-family unit in a condominium 
     project, which mortgage was formerly insured under this Act 
     and subsequently assigned to the Secretary: Provided, That 
     the mortgagor has not previously refinanced a mortgage 
     pursuant to this paragraph: Provided further, That the 
     mortgagor has made all payments due under the note secured by 
     the existing mortgage and all payments due under the note for 
     at least the previous 6 months, or the mortgagor is under a 
     forbearance agreement and has made all payments due under the 
     note secured by the existing mortgage for at least the 
     previous 6 months: Provided further, That the principal 
     amount of the refinancing mortgage may not exceed the 
     outstanding principal balance of the existing mortgage by 
     more than additional amounts owed by the mortgagor due to the 
     delinquency and to the receipt of assignment assistance under 
     section 230: Provided further, That the monthly payment due 
     under the refinancing mortgage may not exceed the monthly 
     payment due under the existing mortgage: Provided further, 
     That the refinancing mortgage may have a term not more than 
     12 years in excess of the unexpired term of the assigned 
     mortgage: Provided further, That the refinancing mortgage may 
     be insured under section 203(b) or 221(d)(2) of this Act, at 
     the option of the mortgagee, or under section 234(c) of this 
     Act in the case of a condominium: Provided further, That a 
     refinancing mortgage insured under section 221(d)(2) shall 
     involve a principal obligation in an amount not to exceed 50 
     percent of the applicable dollar limitation for a 1- to 4-
     family residence under section 203(b)(2): Provided further, 
     That the authority under this paragraph to refinance a 
     mortgage shall terminate 30 months after the date of 
     enactment of this Act: Provided further, That the total 
     number of mortgages refinanced under this paragraph may not 
     exceed 20,000; or''; and
       (4) by adding at the end the following new flush material:
     ``A mortgage of the character described in paragraphs (1) 
     through (6) of this subsection shall have a maturity and a 
     principal obligation not in excess of the maximums prescribed 
     under the applicable section or title of this Act, except 
     that in no case may the principal obligation of a mortgage 
     referred to in paragraph (5) of this subsection exceed 90 
     percent of the appraised value of the mortgage property, and 
     shall bear interest at such rate as may be agreed upon by the 
     mortgagor and the mortgagee.''.
       (b) Implementation.--The Secretary of Housing and Urban 
     Development may implement the authority to refinance a 
     mortgage held by the Secretary under section 223(a)(8) of the 
     National Housing Act, as added by the amendment made by 
     subsection (a)(3) of this section, by notice published in the 
     Federal Register setting forth such requirements as may be 
     necessary.

     SEC. 410. HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY 
                   HOMEOWNERS.

       (a) Extension of Program.--The first sentence of section 
     255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
     amended by striking ``September 30, 1995'' and inserting 
     ``September 30, 2000''.
       (b) Eligible Residences.--Section 255(d)(3) of the National 
     Housing Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as 
     follows:
       ``(3) be secured by a dwelling that is designed principally 
     for a 1- to 4-family residence in which the mortgagor 
     occupies 1 of the units;''.
       (c) Expansion of Program.--The second sentence of section 
     255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
     amended by striking ``25,000'' and inserting ``50,000''.
       (d) Reports.--Section 255(k) of the National Housing Act is 
     amended by adding at the end the following new sentences: 
     ``Each biennial report shall also include the results of a 
     survey conducted during the period since the most recent 
     report under this subsection to determine (A) the financial 
     and other needs of elderly homeowners that cause such 
     homeowners to consider obtaining home equity conversion 
     mortgages, and (B) the extent of consumer satisfaction 
     regarding the program under this section and counseling 
     provided pursuant to the requirements of this section. In 
     conducting the survey, the Secretary shall consult a 
     representative sample of mortgagors of mortgages insured 
     under this section and of elderly homeowners who have 
     expressed interest in obtaining, but did not obtain, such 
     mortgages.''.
       (e) Avoidance of Preemption of State Law.--Section 
     255(b)(3) of the National Housing Act is amended--
       (1) in clause (B), by striking ``, notwithstanding any 
     State constitution, law, or regulation''; and
       (2) by adding at the end the following new sentence: 
     ``Notwithstanding any other provision of this section, the 
     Secretary may not provide insurance for a home equity 
     conversion mortgage in the State of Texas if under the State 
     constitution, or a law or regulation of such State, such 
     mortgages are prohibited or foreclosure or forced sale of the 
     property subject to such a mortgage is prohibited.''.

     SEC. 411. SINGLE FAMILY RISK-SHARING MORTGAGE INSURANCE 
                   PROGRAM.

       (a) In General.--Title II of the National Housing Act (12 
     U.S.C. 1707 et seq.) is amended by adding at the end the 
     following new section:


       ``single family risk-sharing with state and local agencies

       ``Sec. 256. (a) Purposes.--The purposes of the program 
     under this section are (1) to increase the availability of 
     single family mortgage financing in areas where there is need 
     for mortgage insurance under this Act that cannot be met due 
     to particularly high average median house prices in the area, 
     and (2) to foster arrangements with State and local agencies 
     to share the risk of mortgage insurance.
       ``(b) Authority.--Notwithstanding any other provision of 
     this Act inconsistent with this section, the Secretary may 
     insure and make commitments to insure under this section 
     mortgages on single family properties under risk-sharing 
     mortgage insurance programs established with 1 or more States 
     or agencies. Under such programs, the Secretary shall insure 
     a portion of the mortgage, and the State or local agency 
     shall insure the remainder or (at the discretion of the 
     agency) a portion of the remainder and provide for private 
     mortgage insurance companies to insure any portion of the 
     remainder not insured by the agency. The portion of the 
     mortgage insured under this section by the Secretary and the 
     State or local agency, in the aggregate, may not exceed 35 
     percent of the outstanding principal obligation of the 
     mortgage (and such fees, interest, and other expenses 
     determined by the Secretary to be appropriate).
       ``(c) Eligible Mortgages.--The Secretary may insure under 
     this section, and make commitments to insure under this 
     section, only mortgages that--
       ``(1) are executed--
       ``(A) in connection with the acquisition of a single family 
     property; or
       ``(B) for the refinancing of a mortgage that was previously 
     insured under this section; and
       ``(2) involve a property located in an area--
       ``(A) for which the amount under clause (ii) of section 
     203(b)(2)(A) is less than the amount determined under clause 
     (i) of such section for a residence of the applicable size; 
     and
       ``(B) that has a State agency that--
       ``(i) is fully authorized under State and local laws and is 
     adequately capitalized, in the determination of the 
     Secretary, to carry out this section; and
       ``(ii)(I) carries the designation of `top tier' or its 
     equivalent, as evaluated by Standard and Poors or any other 
     nationally recognized rating agency; or
       ``(II) receives a rating of `A' for its general obligation 
     bonds from a nationally recognized rating agency.
       ``(d) Applications.--
       ``(1) Approval.--The Secretary may approve an application 
     submitted by a State or local agency to establish a risk-
     sharing program under this section, only if the Secretary 
     determines that the State or local agency has demonstrated 
     that--
       ``(A) it has the legal authority under State law and, where 
     applicable, local law, to participate in the program under 
     this section;
       ``(B) it has carried out, or has the potential to carry 
     out, a financially sound, efficient, and effective mortgage 
     insurance program; and
       ``(C) it has the ongoing administrative and financial 
     capacity necessary to carry out a program under this section.
       ``(2) Cancellation of approval.--The Secretary may cancel 
     approval of a State or local agency under this section for a 
     violation of requirements and procedures under the risk-
     sharing agreement between the State or local agency and the 
     Secretary or for other good cause, by giving notice to the 
     State or local agency. The cancellation shall be effective 
     upon receipt of the notice by the agency or at a later date 
     specified by the Secretary. A decision by the Secretary to 
     cancel approval shall be final and conclusive and shall not 
     be subject to judicial review.
       ``(e) Delegation of Authority To Insure to State and Local 
     Agencies.--Pursuant to a risk-sharing agreement with a State 
     or local agency, the Secretary shall delegate the authority 
     to insure and make commitments to insure the portion of 
     mortgages to be insured by the Secretary under this section 
     to the State or local agency. The risk-sharing agreement 
     shall contain such other matters as the Secretary and the 
     State or local agency agree.
       ``(f) Underwriting Standards and Loan Terms and 
     Conditions.--The State or local agency shall adopt 
     underwriting standards and loan terms and conditions for 
     purposes of underwriting loans to be insured under this 
     section. Such standards shall be at least as stringent as the 
     standards pursuant to this Act for mortgages insured under 
     section 203 and shall be subject to review and approval by 
     the Secretary.
       ``(g) Mortgage Insurance Premiums.--
       ``(1) Requirement.--The State or local agency shall require 
     the payment of mortgage insurance premiums by mortgagors.
       ``(2) Shares.--The Secretary shall establish policies and 
     procedures for the sharing of premiums between the Secretary 
     and the State or local agency, based on the relative risk to, 
     and administrative costs of, the Secretary and the State or 
     local agency. The share paid to the Secretary shall not be 
     less than an amount necessary to cover the risk to, and 
     administrative costs of, the Secretary.
       ``(h) Limitations on Principal Mortgage Amount.--
       ``(1) Insured portion.--The portion of the mortgage insured 
     under this section by the Secretary may not exceed an amount 
     equal to the lesser of (A) 80 percent of the appraised value 
     of the property, or (B) the maximum amount the Secretary may 
     insure under section 203(b) of this Act for the area (but not 
     including any amount for a mortgage insurance premium).
       ``(2) Total principal amount.--The total principal amount 
     of a mortgage insured under this section by the Secretary and 
     the State or local agency (A) shall exceed the maximum amount 
     the Secretary may insure under subparagraph (A) of the first 
     sentence of section 203(b)(2) for the area, and (B) may not 
     exceed the conforming loan limitation determined under 
     section 305(a)(2) of the Federal Home Loan Mortgage 
     Corporation Act for a residence of the applicable size, as 
     adjusted annually.
       ``(3) Loan-to-value ratio.--The principal obligation of a 
     mortgage may not exceed an amount determined in accordance 
     with subparagraph (B) of the first sentence of section 
     203(b)(2) plus the mortgage insurance premium.
       ``(4) Refinancing mortgages.--Notwithstanding paragraph 
     (2)(A) or (3), in the case of refinancing of an existing 
     mortgage that was previously insured under this section, the 
     principal obligation of a refinancing mortgage may not exceed 
     the outstanding principal balance of the existing mortgage 
     plus any mortgage insurance premium.
       ``(i) Insurance Claims.--
       ``(1) Procedure.--In the case of a default and foreclosure 
     of a mortgage insured under this section, the mortgagee may 
     file a claim with the State or local agency for insurance 
     benefits in accordance with requirements established by the 
     State or local agency and approved by the Secretary. The 
     agency shall pay the full amount of the claim owed to the 
     mortgagee. If the loss on the insured mortgage exceeds the 
     amount of insurance by the agency, the Secretary shall 
     reimburse the agency for the difference.
       ``(2) Mutual mortgage insurance fund.--The insurance of a 
     mortgage under this section by the Secretary shall be an 
     obligation of the Mutual Mortgage Insurance Fund created 
     pursuant to section 205.
       ``(j) Inapplicability of the Assignment Program.--Section 
     230 shall not apply to mortgages insured under the program 
     authorized by this section.
       ``(k) Restriction on GNMA Securitization.--The Government 
     National Mortgage Association shall not securitize any loans 
     insured under this section.
       ``(l) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) The term `local agency' means an agency of a unit of 
     general local government, as defined by the Secretary, that 
     has the authority to insure mortgages and to participate with 
     the Secretary in the single family risk-sharing program under 
     this section, or an agency or instrumentality of a local 
     agency if the agency or instrumentality has such authority.
       ``(2) The term `State agency' means an agency of a State 
     that has the authority to insure mortgages and to participate 
     with the Secretary in the single family risk-sharing program 
     under this section, or an agency or instrumentality of a 
     State agency if the agency or instrumentality has such 
     authority.
       ``(3) The term `single family property' means a property 
     upon which there is located a dwelling designed principally 
     for occupancy by 1 family, and includes a condominium and a 
     cooperative.
       ``(4) The term `State' means the several States, the 
     Commonwealth of Puerto Rico, the District of Columbia, Guam, 
     the Commonwealth of the Northern Mariana Islands, American 
     Samoa, and the Virgin Islands.''.
       (b) Regulations.--The Secretary of Housing and Urban 
     Development shall issue any regulations necessary to 
     implement the amendment made by subsection (a).

     SEC. 412. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING 
                   AUTHORITY TO DIRECT ENDORSEMENT MORTGAGEES.

       Title II of the National Housing Act (12 U.S.C. 1707 et 
     seq.), as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     section:


  ``delegation of insuring authority to direct endorsement mortgagees

       ``Sec. 257. (a) Authority.--The Secretary may delegate, to 
     one or more mortgagees approved by the Secretary under the 
     direct endorsement program, the authority of the Secretary 
     under this Act to insure mortgages involving property upon 
     which there is located a dwelling designed principally for 
     occupancy by 1 to 4 families.
       ``(b) Considerations.--In determining whether to delegate 
     authority to a mortgagee under this section, the Secretary 
     shall consider the experience and performance of the 
     mortgagee under the direct endorsement program, the default 
     rate of insured mortgages originated by the mortgagee 
     compared to the default rate of all insured mortgages in 
     comparable markets, and such other factors as the Secretary 
     determines appropriate to minimize risk of loss to the 
     insurance funds under this Act.
       ``(c) Enforcement of Insurance Requirements.--
       ``(1) In general.--If the Secretary determines that a 
     mortgage insured by a mortgagee pursuant to delegation of 
     authority under this section was not originated in accordance 
     with the requirements established by the Secretary, and the 
     Secretary pays an insurance claim with respect to the 
     mortgage within a reasonable period specified by the 
     Secretary, the Secretary may require the mortgagee approved 
     under this section to indemnify the Secretary for the loss.
       ``(2) Fraud or misrepresentation.--If fraud or 
     misrepresentation was involved in connection with the 
     origination, the Secretary may require the mortgagee approved 
     under this section to indemnify the Secretary for the loss 
     regardless of when an insurance claim is paid.
       ``(d) Termination of Mortgagee's Authority.--If a mortgagee 
     to which the Secretary has made a delegation under this 
     section violates the requirements and procedures established 
     by the Secretary or the Secretary determines that other good 
     cause exists, the Secretary may cancel a delegation of 
     authority under this section to the mortgagee by giving 
     notice to the mortgagee. Such a cancellation shall be 
     effective upon receipt of the notice by the mortgagee or at a 
     later date specified by the Secretary. A decision by the 
     Secretary to cancel a delegation shall be final and 
     conclusive and shall not be subject to judicial review.
       ``(e) Requirements and Procedures.--Before approving a 
     delegation under this section, the Secretary shall issue 
     regulations establishing appropriate requirements and 
     procedures, including requirements and procedures governing 
     the indemnification of the Secretary by the mortgagee.''.

     SEC. 413. ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED LAND 
                   OWNED BY COMMUNITY LAND TRUSTS.

       Title II of the National Housing Act (12 U.S.C. 1707 et 
     seq.), as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     section:


 ``eligibility of mortgages on homes on leased land owned by community 
                              land trusts

       ``Sec. 258. (a) Eligibility for Insurance.--In providing 
     mortgage insurance under any provision of this title for a 
     mortgage covering a 1- to 4-family residence, the Secretary 
     may insure a mortgage covering such a residence which is 
     located on property owned by a community land trust without 
     regard to the extent to which the resale price of the 
     residence is restricted or the manner in which such price is 
     established.
       ``(b) Limitation on Restrictions.--The Secretary may not, 
     as a condition of such insurance, establish any requirements 
     regarding the resale price of residences on land owned by a 
     community land trust, except that the Secretary may require 
     that a ground lease or other document establishing legally 
     enforceable restrictions or limitations on the resale price 
     provide that the restrictions or limitations be cancelable in 
     the event of foreclosure or delivery of a deed in lieu of 
     foreclosure (or assignment).
       ``(c) Definition of `Community Land Trust'.--For purposes 
     of this section, the term `community land trust' has the 
     meaning given the term in section 233 of the Cranston-
     Gonzalez National Affordable Housing Act.''.

     SEC. 414. INSURANCE OF 2-STEP SINGLE FAMILY MORTGAGES.

       Title II of the National Housing Act (12 U.S.C. 1701 et 
     seq.), as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     section:


                    ``2-step single family mortgages

       ``Sec. 259. (a) Authority.--After making the finding 
     required under subsection (d), the Secretary may insure under 
     any provision of this title a mortgage involving property 
     upon which there is located a dwelling designed principally 
     for occupancy by 1 to 4 families, where the mortgage provides 
     that the effective rate of interest charged is--
       ``(1) fixed for the duration of a specified period that 
     consists of not less than the first 5 years of the mortgage 
     term;
       ``(2) adjusted by the mortgagee upon the expiration of the 
     specified period referred to in paragraph (1) for the 
     mortgage; and
       ``(3) for the term of the mortgage remaining after such 
     adjustment--
       ``(A) fixed at the adjusted rate established pursuant to 
     paragraph (2); or
       ``(B) periodically adjusted by the mortgagee.
       ``(b) Redetermination of Rate.--For each mortgage insured 
     pursuant to this section, the adjustment of the effective 
     rate of interest pursuant to subsection (a)(2) may be 
     accomplished through adjustments in the monthly payment 
     amount, the outstanding principal balance, or the mortgage 
     term, or a combination of such factors, except that in no 
     case may any extension of a mortgage term result in a total 
     term in excess of 40 years. The adjustment in the effective 
     rate of interest shall correspond to a specified national 
     interest rate index that is approved in regulations issued by 
     the Secretary and information on which is readily accessible 
     to the mortgagors from generally available published sources.
       ``(c) Limitations on Second-Step Periodic Rates.--For each 
     mortgage insured pursuant to this section for which the 
     effective rate of interest charged pursuant to subsection 
     (a)(3) is periodically adjusted under subparagraph (B) of 
     such subsection, such adjustments in the interest rate--
       ``(1) may be accomplished through adjustments in the 
     monthly payment amount, the outstanding principal balance, or 
     the mortgage term, or a combination of such factors, except 
     that in no case may any extension of a mortgage term result 
     in a total term in excess of 40 years;
       ``(2) shall correspond to a specified national interest 
     rate index that is approved in regulations issued the 
     Secretary and information on which is readily accessible to 
     the mortgagors from generally available published sources;
       ``(3) shall be made on an annual basis;
       ``(4) shall be limited, with respect to any single interest 
     rate increase, to no more than 1 percent on the outstanding 
     loan balance; and
       ``(5) be limited to a maximum increase of 5 percentage 
     points above the initial contract interest rate over the term 
     of the mortgage.
       ``(d) Conditions on Insuring Authority.--The Secretary may 
     insure mortgages pursuant to this section only after 
     determining that the risk posed by such insurance to the 
     financial safety and soundness of the insurance fund of which 
     the mortgage insurance is an obligation does not exceed such 
     risk posed by insurance of mortgages of equivalent terms 
     having fixed interest rates over such terms.
       ``(e) Description of Features.--The Secretary shall issue 
     regulations requiring that the mortgagee make available to 
     the mortgagor, at the time of loan application, a written 
     explanation of the features of the 2-step mortgage insured 
     pursuant to this section.
       ``(f) Limitation of Total Number of Mortgages Insured.--The 
     aggregate number of mortgages and loans insured pursuant to 
     this section in any fiscal year may not exceed 10 percent of 
     the aggregate number of mortgages and loans insured by the 
     Secretary under this title during the preceding fiscal 
     year.''.

     SEC. 415. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS IN HIGH-
                   COST AREAS.

       (a) In General.--Each of the provisions under subsection 
     (b) is amended by striking ``140 percent'' and inserting 
     ``152 percent''.
       (b) Provisions Amended.--The provisions under this 
     subsection are the following sections of title II of the 
     National Housing Act (12 U.S.C. 1707 et seq.):
       (1) Section 207(c)(3).
       (2) Section 213(b)(2).
       (3) Section 220(d)(3)(B)(iii).
       (4) Section 221(d)(3)(ii).
       (5) Section 221(d)(4)(ii).
       (6) Section 231(c)(2).
       (7) Section 234(e)(3).

     SEC. 416. CALCULATION OF CREDIT SUBSIDY FOR FHA REFINANCINGS 
                   AND OFFSET OF NEGATIVE SUBSIDIES.

       (a) Refinancing.--Paragraph (2) of section 542 of the 
     National Housing Act (12 U.S.C. 1735f-20(2)) is amended by 
     adding at the end the following new sentence: ``In the case 
     of a mortgage insured under this Act that refinances an 
     existing insured mortgage, the cost to the Government shall 
     not exceed an amount that is determined by applying the 
     subsidy rate used for the insurance authority pursuant to 
     which the refinanced mortgage was insured to the amount of 
     the refinancing mortgage which exceeds the outstanding 
     principal balance of the refinanced mortgage, which amount 
     may be adjusted, if necessary, by reason of an extension in 
     the remaining term of the refinanced mortgage.''.
       (b) Offsets.--Section 542 of the National Housing Act is 
     amended by adding at the end the following new flush 
     sentence:

     ``The cost, as defined in section 502 of the Congressional 
     Budget Act of 1974, for any fiscal year of new insurance 
     commitments and of modifications to existing loans, loan 
     guarantees, or insurance commitments, shall be determined by 
     subtracting the aggregate amount of negative subsidies from 
     the aggregate amount of positive subsidies for the fiscal 
     year.''.

     SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYSTEMS AND 
                   TESTING OF SYSTEMS.

       (a) In General.--Section 424 of the Housing and Community 
     Development Act of 1987 (12 U.S.C. 1701z-15) is amended--
       (1) in subsection (a), by inserting after the period at the 
     end the following new sentence: ``The Secretary of Housing 
     and Urban Development shall provide for the approval under 
     subsection (c) of both point-of-use and point-of-entry water 
     treatment equipment and water purification systems that meet 
     the standards established under this section.'';
       (2) in the first sentence of subsection (b), by striking 
     ``general standards recognized by the Department as modified 
     for local or regional conditions'' and inserting the 
     following: ``standards for testing using (1) industry-
     accepted product testing protocols, or (2) protocols that 
     utilize technically valid methodology using analytical 
     testing methods of the Environmental Protection Agency for 
     drinking water quality and maximum contaminant levels or 
     equivalent methods'';
       (3) by redesignating subsection (b) (as amended by 
     paragraph (2) of this section) as subsection (c); and
       (4) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Point-of-Use Equipment.--For any property in which 
     the water treatment or purification system in operation 
     employs point-of-use equipment, the Secretary may not require 
     that a treatment or purification system be employed on any 
     water supply source serving the property that provides water 
     that will not be used primarily for human consumption.''.
       (b) Regulations.--The Secretary of Housing and Urban 
     Development shall issue any regulations necessary to carry 
     out section 424 of the Housing and Community Development Act 
     of 1987, as amended by subsection (a) of this section, not 
     later than the expiration of the 6-month period beginning on 
     the date of the enactment of this Act.

     SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.

       Section 106 of the Energy Policy Act of 1992 (42 U.S.C. 
     12712 note) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (A), by inserting ``(which may be an 
     adjustable rate mortgage insured under section 251 of such 
     Act and may be a mortgage for a property that is not the 
     principal or secondary residence of the mortgagor to the 
     extent provided in section 203(g) of such Act)'' after 
     ``Act''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) Rating and installation.--The program shall provide 
     that the person conducting the home energy rating report 
     under subsection (c)(2) for the property subject to the 
     energy efficient mortgage may also, subject only to the 
     approval of the mortgagee and mortgagor, install the energy 
     efficiency improvements.''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``(including an 
     adjustable rate mortgage loan eligible for insurance under 
     section 251 of such Act)'' after ``Act''; and
       (B) in the first sentence of paragraph (2), by striking 
     ``the total present value cost'' and all that follows through 
     the end of the sentence and inserting the following: ``energy 
     improvements that generate energy savings in the first year 
     after improvement that are greater than the increase in the 
     amount of the loan payment for such first-year due to the 
     energy improvements. In the case of a base loan insured under 
     section 251 of the National Housing Act, the interest rate 
     used to determine the amount of such increase in the loan 
     payment shall be the maximum allowable interest rate under 
     the mortgage.''.

     SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT 
                   DEMONSTRATIONS.

       Section 542 of the Housing and Community Development Act of 
     1992 (12 U.S.C. 1707 note) is amended--
       (1) in subsection (b)(5), by striking ``1993 and 1994'' and 
     inserting ``1995 and 1996''; and
       (2) in subsection (c)(4), by striking ``1993, 1994, and 
     1995'' and inserting ``1995, 1996, and 1997''.

     SEC. 420. INDIAN HOUSING LOAN GUARANTEES.

       (a) Limitation on Outstanding Aggregate Principal Amount.--
     Section 184(i)(5)(C) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1515z-13a(i)(5)(C)) is amended by 
     striking ``fiscal years 1993 and 1994'' and inserting 
     ``fiscal years 1995 and 1996''.
       (b) Authorization of Appropriations for Guarantee Fund.--
     Section 184(i)(7) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1515z-13a(i)(7)) is amended to read as 
     follows:
       ``(7) Authorization of appropriations.--There are 
     authorized to be appropriated to the Guarantee Fund to carry 
     out this section $50,000,000 for fiscal year 1995 and 
     $50,000,000 for fiscal year 1996.''.

     SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE FEDERAL 
                   HOUSING ADMINISTRATION.

       (a) Purpose.--The purpose of this section is to establish a 
     national commission to develop recommendations regarding the 
     appropriate future role of the Federal Government in 
     providing mortgage insurance, for modernizing and improving 
     the structure and operations of the Federal Housing 
     Administration, for protecting the safety and soundness of 
     the insurance funds of the FHA, and for serving families 
     currently underserved by the mortgage finance system.
       (b) Establishment.--There is hereby established a 
     commission to be known as the National Commission on the 
     Future of the Federal Housing Administration.
       (c) Membership.--
       (1) In general.--The Commission shall consist of the 
     Secretary of Housing and Urban Development and 16 members 
     appointed, not later than 60 days after amounts to carry out 
     this section are made available under subsection (h), as 
     follows:
       (A) 4 members shall be appointed by the Chairman of the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and 4 members shall be appointed by the Ranking 
     Minority Member of such Committee.
       (B) 4 members shall be appointed by the Chairman of the 
     Committee on Banking, Finance and Urban Affairs of the House 
     of Representatives and 4 members shall be appointed by the 
     Ranking Minority Member of such Committee.
       (2) Qualifications.--The 8 members of the Commission 
     appointed under each of subparagraphs (A) and (B) of 
     paragraph (1) shall include--
       (A) 1 individual who represents the mortgage finance 
     industry;
       (B) 1 individual with knowledge and experience from a 
     secondary mortgage market entity;
       (C) 1 individual with knowledge and experience concerning 
     home sales or multifamily housing management;
       (D) 1 individual who represents the private mortgage 
     insurance industry;
       (E) 1 individual with knowledge and experience concerning 
     single family or multifamily housing asset management;
       (F) 1 individual who represents a State or local housing 
     agency active in single family or multifamily housing 
     activities;
       (G) 1 individual who represents the interests of consumers 
     or communities, in single family or multifamily housing; and
       (H) 1 individual who represents or resides in an urban or 
     rural neighborhood whose residents consist predominantly of 
     members of minorities.
       (3) Chairperson.--The Commission shall elect a chairperson 
     from among members of the Commission.
       (4) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business.
       (5) Voting.--Each member of the Commission shall be 
     entitled to 1 vote, and all votes shall be given equal 
     weight.
       (6) Vacancies.--Any vacancy on the Commission shall not 
     affect the powers of the Commission and shall be filled in 
     the manner in which the original appointment was made.
       (7) Prohibition on additional pay.--Members of the 
     Commission shall serve without compensation, but shall be 
     reimbursed for travel, subsistence, and other necessary 
     expenses incurred in the performance of their duties as 
     members of the Commission.
       (d) Subcommittees.--In carrying out its duties under 
     subsection (e), the Commission shall establish 2 
     subcommittees, 1 of which shall carry out such duties with 
     respect to issues relating to mortgage insurance for 
     multifamily housing and 1 of which shall carry out such 
     duties with respect to issues relating to mortgage insurance 
     for single family housing.
       (e) Duties.--
       (1) In general.--The Commission shall conduct a study of 
     the existing operations of the FHA and shall make 
     recommendations regarding the future mission, organization, 
     responsibilities, and function of the FHA. In conducting the 
     study and formulating recommendations, the Commission shall--
       (A) determine the most appropriate role for the Federal 
     Government in extending the availability of mortgage credit 
     and review various alternative mortgage products and, with 
     regard to the mission and functions of the FHA, the 
     appropriateness of the use of such products by the FHA;
       (B) determine whom FHA programs are intended to serve;
       (C) consider whether the FHA could function more 
     effectively if organized as a government corporation, a 
     government-sponsored enterprise, or with any other 
     organizational structure different from the existing 
     structure;
       (D) consider whether the personnel, procurement, budgeting, 
     and other requirements generally applicable to the Federal 
     agencies should be modified in their applicability to the 
     FHA;
       (E) review the laws establishing and relating to the FHA 
     and determine whether amendments to such law would be 
     appropriate to restructure the FHA, or to provide new 
     authority or increased flexibility for the operations of the 
     FHA;
       (F) determine ways in which the FHA can more effectively 
     contribute to the revitalization of inner cities and increase 
     housing opportunities for low-income families;
       (G) determine ways to improve the management and sale of 
     assets owned by the FHA;
       (H) determine ways to reduce the risk of future insurance 
     losses from the existing inventory of outstanding mortgages 
     insured by the FHA; and
       (I) determine ways to improve the private management of 
     multifamily properties insured by the FHA.
       (2) Interim report.--Not later than the expiration of the 
     10-month period beginning upon the appointment of all of the 
     members of the Commission under subsection (c), the 
     Commission shall submit to the Secretary of Housing and Urban 
     Development and to the Congress an interim report containing 
     the preliminary information and evaluations specified in 
     paragraph (1) and initial recommendations for legislative and 
     administrative actions to carry out the determinations made 
     pursuant to paragraph (1).
       (3) Report.--Not later than the expiration of the 18-month 
     period beginning upon the appointment of all of the members 
     of the Commission under subsection (c), the Commission shall 
     submit to the Secretary of Housing and Urban Development and 
     to the Congress a report containing the information and 
     evaluations specified in paragraph (1) and specific 
     recommendations for legislative and administrative actions to 
     carry out the determinations made pursuant to paragraph (1).
       (f) Powers.--
       (1) Hearings.--The Commission may, for the purpose of 
     carrying out this section, hold such hearings and sit and act 
     at such times and places as the Commission considers 
     appropriate.
       (2) Rules and regulations.--The Commission may adopt such 
     rules and regulations as may be necessary to establish its 
     procedures and to govern the manner of its operations, 
     organization, and personnel.
       (3) Assistance from federal agencies.--
       (A) Information.--The Commission may secure directly from 
     any department or agency of the United States such data and 
     information as the Commission may require for the purpose of 
     carrying out this section. Upon request of the Commission, 
     any such department or agency shall furnish such data or 
     information. The Commission may acquire data or information 
     directly from such departments or agencies to the same extent 
     that the Secretary may acquire such data or information.
       (B) Administrative support.--The General Services 
     Administration shall provide to the Commission, on a 
     reimbursable basis, administrative support services requested 
     by the Commission.
       (C) Personnel details.--Upon the request of the chairperson 
     of the Commission, the Secretary shall, to the extent 
     possible and subject to the discretion of the Secretary, 
     detail any of the personnel of the Department of Housing and 
     Urban Development, on a nonreimbursable basis, to assist the 
     Commission in carrying out its duties under this section.
       (4) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal agencies.
       (5) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriations Acts, enter 
     into contracts necessary to carry out its duties under this 
     section.
       (6) Advisory committee.--The Commission shall be considered 
     an advisory committee within the meaning of the Federal 
     Advisory Committee Act.
       (7) Staff.--
       (A) Executive director.--The Commission shall appoint an 
     executive director of the Commission who shall be compensated 
     at a rate fixed by the Commission, but which may not exceed 
     the rate established for level V of the Executive Schedule 
     under title 5, United States Code.
       (B) Personnel.--In addition to the executive director, the 
     Commission may appoint and fix the compensation of such 
     personnel as the Commission considers appropriate, in 
     accordance with the provisions of title 5, United States 
     Code, governing appointments in the competitive service, and 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of such title, relating to classification and General 
     Schedule pay rates.
       (C) Limitation.--This paragraph shall be effective only to 
     the extent amounts are made available in appropriation Acts.
       (g) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) The term ``Commission'' means the National Commission 
     on the Future of the Federal Housing Administration.
       (2) The term ``FHA'' means the Federal Housing 
     Administration of the Department of Housing and Urban 
     Development.
       (3) The term ``Secretary'' means the Secretary of Housing 
     and Urban Development.
       (h) Funding.--Of any amounts appropriated pursuant to 
     section 501 of the Housing and Urban Development Act of 1970, 
     the Secretary shall set aside to carry out this section 
     $1,000,000 for fiscal year 1995. Any amounts made available 
     pursuant to this subsection shall remain available until 
     expended.
       (i) Sunset.--The Commission shall terminate upon the 
     expiration of the 18-month period that begins upon the 
     appointment of all of the members of the Commission under 
     subsection (c).

     SEC. 422. ACTION AND REPORT ON COOPERATIVE HOMEOWNERSHIP FOR 
                   LOW- AND MODERATE-INCOME FAMILIES.

       (a) Review.--The Secretary of Housing and Urban 
     Development, acting through the Assistant Secretary who is 
     the Federal Housing Commissioner, shall review the report of 
     The Urban Institute, dated May 1994 and entitled 
     ``Performance of HUD Subsidized Loans: Does Cooperative 
     Housing Matter?''.
       (b) Action.--Not later than 9 months after the date of the 
     enactment of this Act, the Secretary shall implement any 
     recommendations made in the report referred to in subsection 
     (a) that (1) the Secretary considers appropriate and 
     feasible, (2) are within the jurisdiction of the Assistant 
     Secretary referred to in subsection (a), and (3) the 
     Secretary has authority under law to implement.
       (c) Report.--The Secretary shall submit a report to the 
     Congress not later than 9 months after the date of the 
     enactment of this Act, which shall--
       (1) evaluate the report referred to in subsection (a);
       (2) describe any action taken under subsection (b);
       (3) identify and proposes the elimination of any Federal 
     housing policies or programs that, in the determination of 
     the Secretary, inhibit the development of cooperative 
     homeownership for low- and moderate-income families; and
       (4) recommend any legislative action necessary to eliminate 
     the policies or programs identified under paragraph (3).

     SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE BANKERS AND 
                   INSURERS.

       (a) Study.--The Secretary of Housing and Urban Development 
     shall conduct a study to determine the patterns of lending 
     and insurance activity of private mortgage lenders and 
     private mortgage insurers, respectively. The study shall be 
     designed to determine--
       (1) the geographical areas in which properties are located 
     for which loans are made by private mortgage lenders and the 
     characteristics of such areas;
       (2) the extent of lending activity by private mortgage 
     lenders, in terms of number of loans and principal amount, in 
     areas having a low median income, a moderate median income, 
     and other areas;
       (3) the types of loans made by private mortgage lenders, 
     and the extent of lending activity, in each of the areas 
     described in paragraph (2), which shall include the types and 
     extent of any lending activity made in connection with 
     economic development of low- and moderate-income areas;
       (4) the geographical areas in which properties are located 
     for which mortgage insurance is provided by private mortgage 
     insurers and the characteristics of such areas;
       (5) the extent of insurance activity by private mortgage 
     insurers, in terms of number of loans insured and principal 
     amount insured, in areas having a low median income, a 
     moderate median income, and other areas; and
       (6) the types of loans insured and extent of insurance 
     activity by private mortgage insurers in each of the areas 
     described in paragraph (5), which shall include the types and 
     extent of any insurance activity made in connection with 
     mortgages or loans for economic development activity in low- 
     and moderate-income areas.
       (b) Report.--The Secretary shall submit a report to the 
     Congress describing the results of the study under this 
     section not later than the expiration of the 6-month period 
     beginning on the date of the enactment of this Act.
       (c) Definitions.--For purposes of this section--
       (1) the term ``private mortgage insurer'' means a person 
     who provides insurance against the nonpayment of, or default 
     on, a mortgage or loan for residential or commercial property 
     that is not insurance made available under the National 
     Housing Act, title 38 of the United States Code, or title V 
     of the Housing Act of 1949; and
       (2) the term ``private mortgage lender'' means any lender 
     that is not subject to the supervision, approval, regulation, 
     or insuring of the Board of Governors of the Federal Reserve 
     System, the Federal Deposit Insurance Corporation, the 
     Comptroller of the Currency, the Office of Thrift 
     Supervision, the National Credit Union Administration, or any 
     other Federal agency that regulates lending activity. The 
     term does not include institutions engage primarily in the 
     purchase of mortgage loans.
             Subtitle B--Secondary Mortgage Market Programs

     SEC. 441. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED 
                   SECURITIES.

       Section 306(g)(2) of the Federal National Mortgage 
     Association Charter Act (12 U.S.C. 1721(g)(2)) is amended to 
     read as follows:
       ``(2) Notwithstanding any other provision of law and 
     subject only to the absence of qualified requests for 
     guarantees, to the authority provided in this subsection, and 
     to the extent of or in such amounts as any funding limitation 
     approved in appropriation Acts, the Association shall enter 
     into commitments to issue guarantees under this subsection in 
     an aggregate amount of $130,000,000,000 during fiscal year 
     1995 and $130,000,000,000 during fiscal year 1996. There are 
     authorized to be appropriated to cover the costs (as such 
     term is defined in section 502 of the Congressional Budget 
     Act of 1974) of guarantees issued under this Act by the 
     Association such sums as may be necessary for each of fiscal 
     years 1995 and 1996.''.

     SEC. 442. ASSESSMENT COLLECTION DATES FOR OFFICE OF FEDERAL 
                   HOUSING ENTERPRISE OVERSIGHT.

       Section 1316(b) of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 4516(b)) is amended by striking 
     paragraph (2) and inserting the following new paragraph:
       ``(2) Timing of payment.--The annual assessment shall be 
     payable semiannually for each fiscal year, on October 1st and 
     April 1st.''.
                 Subtitle C--Emergency Mortgage Relief

     SEC. 461. AMENDMENTS TO EMERGENCY HOMEOWNERS' RELIEF ACT.

       (a) Findings.--Section 102(a) of the Emergency Homeowners' 
     Relief Act (12 U.S.C. 2701(a)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) certain homeowners in the United States are 
     encountering severe economic hardships as a result of 
     unemployment or a reduction in income;'';
       (2) in paragraph (2), by striking ``adverse economic 
     conditions'' and inserting ``economic hardships''; and
       (3) in paragraph (3), by striking ``economic conditions'' 
     and inserting ``their economic conditions''.
       (b) Mortgages Eligible for Assistance.--Section 103 of the 
     Emergency Homeowners' Relief Act (12 U.S.C. 2702) is 
     amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6)--
       (A) by inserting ``a 1- to 4-family residence that is'' 
     after ``is''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) the delinquency for which the holder of the mortgage 
     intends to foreclose commenced after the date of the 
     enactment of the Housing and Community Development Act of 
     1994.''.
       (c) Authorization of Appropriations.--Section 109(a) of the 
     Emergency Homeowners' Relief Act (12 U.S.C. 2708(a)) is 
     amended by striking ``, except that'' and all that follows 
     through ``$500,000,000'' and inserting ``for fiscal years 
     1995 and 1996''.
       (d) Expiration Date.--Section 109(b) of the Emergency 
     Homeowners' Relief Act (12 U.S.C. 2708(b)) is amended by 
     striking ``September 30, 1977'' and inserting ``September 30, 
     1996''.
       (e) Notification.--Section 110 of the Emergency Homeowners' 
     Relief Act (12 U.S.C. 2709) is amended--
       (1) in paragraph (1) of the 1st sentence--
       (A) by striking ``October 1, 1977'' and inserting 
     ``September 30, 1996''; and
       (B) by inserting ``single family'' before ``residential'';
       (2) in paragraph (2) of the 1st sentence, by striking 
     ``until one year from the date of the enactment of this 
     title'' and inserting ``during fiscal years 1995 and 1996''; 
     and
       (3) in the 2d sentence, by striking ``Federal Home Loan 
     Bank Board, the Federal Savings and Loan Insurance 
     Corporation'' and inserting ``Office of Thrift Supervision''.
       (f) Reports.--Section 111 of the Emergency Homeowners' 
     Relief Act (12 U.S.C. 2710) is amended--
       (1) by striking ``Within'' and all that follows through 
     ``Congress on'' and inserting the following: ``For fiscal 
     year 1995 and each fiscal year thereafter that begins before 
     the date in section 109(b), the Secretary shall submit a 
     report under this section to the Congress. The report for a 
     fiscal year shall be submitted not later than 60 days after 
     the end of the fiscal year and shall describe'';
       (2) by striking ``purposes'' and inserting ``purpose'';
       (3) by inserting ``and'' before ``(4)''; and
       (4) by striking ``; and (5)'' and all that follows and 
     inserting a period.
    Subtitle D--Nonjudicial Foreclosure of Defaulted Single Family 
                               Mortgages

     SEC. 481. SHORT TITLE.

       This subtitle may be cited as the ``Single Family Mortgage 
     Foreclosure Act of 1994''.

     SEC. 482. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) disparate State laws under which mortgages are 
     foreclosed on behalf of the Secretary of Housing and Urban 
     Development covering one- to four-family residential 
     properties burden certain programs administered by the 
     Secretary, increase the costs of collecting these 
     obligations, and cause detriment to the community generally;
       (2) long periods to complete the foreclosure of these 
     mortgages under certain State laws lead to deterioration in 
     the condition of the properties involved; necessitate 
     substantial Federal holding expenditures; increase the risk 
     of vandalism, fire loss, depreciation, damage, and waste with 
     respect to the properties; and adversely affect the 
     neighborhoods in which the properties are located;
       (3) these conditions seriously impair the Secretary's 
     ability to protect the Federal financial interest in the 
     affected properties and frustrate attainment of the 
     objectives of the underlying Federal program authority;
       (4) the availability of a uniform and more expeditious 
     procedure, with no right of redemption in the mortgagor or 
     others, for the foreclosure of these mortgages by the 
     Secretary will tend to ameliorate these conditions; and
       (5) providing the Secretary with a nonjudicial foreclosure 
     procedure will reduce unnecessary litigation by removing many 
     foreclosures from the courts where they contribute to 
     overcrowded calendars.
       (b) Purpose.--The purpose of this subtitle is to create a 
     uniform Federal foreclosure remedy for single family 
     mortgages that (1) are held by the Secretary of Housing and 
     Urban Development pursuant to title I or title II of the 
     National Housing Act or (2) secure loans obligated by the 
     Secretary under section 312 of the Housing Act of 1964.

     SEC. 483. DEFINITIONS.

       As used in this subtitle--
       (1) the term ``bona fide purchaser'' means a purchaser for 
     value in good faith and without notice of any adverse claim, 
     who will, therefore, acquire the security property free of 
     any adverse claim;
       (2) the term ``mortgage'' means a deed of trust, mortgage, 
     deed to secure debt, security agreement, or any other form of 
     instrument under which any interest in property, real, 
     personal or mixed, or any interest in property including 
     leaseholds, life estates, reversionary interests, and any 
     other estates under applicable State law, is conveyed in 
     trust, mortgaged, encumbered, pledged, or otherwise rendered 
     subject to a lien for the purpose of securing the payment of 
     money or the performance of an obligation;
       (3) the term ``single family mortgage'' means a mortgage 
     that covers property on which there is located a one- to 
     four-family residence, which mortgage--
       (A) is held by the Secretary pursuant to title I or title 
     II of the National Housing Act, or
       (B) secures a loan obligated by the Secretary under section 
     312 of the Housing Act of 1964, as it existed before its 
     repeal by section 289 of the Cranston-Gonzalez National 
     Affordable Housing Act (except that a mortgage securing such 
     a loan that covers property containing non-residential space 
     and a one- to four-family dwelling shall not be subject to 
     this Act);
       (4) the term ``mortgage agreement'' means the note or debt 
     instrument and the mortgage instrument, deed of trust 
     instrument, trust deed, or instrument or instruments creating 
     the mortgage, including any instrument incorporated by 
     reference therein and any instrument or agreement amending or 
     modifying any of the foregoing;
       (5) the term ``mortgagor'' means the obligor, grantor, or 
     trustor named in the mortgage agreement and, unless the 
     context otherwise indicates, includes the current owner of 
     record of the security property whether or not personally 
     liable on the mortgage debt;
       (6) the term ``owner'' means any person who has an 
     ownership interest in property and includes heirs, devisees, 
     executors, administrators, and other personal 
     representatives, and trustees of testamentary trusts if the 
     owner of record is deceased;
       (7) the term ``person'' includes any individual, group of 
     individuals, association, partnership, corporation, or 
     organization;
       (8) the terms ``record'' and ``recorded'' include 
     ``register'' and ``registered'' in the instance of registered 
     land;
       (9) the term ``security property'' means the property 
     (real, personal or mixed) or an interest in property 
     (including leaseholds, life estates, reversionary interests, 
     and any other estates under applicable State law), together 
     with fixtures and other interests subject to the lien of the 
     mortgage under applicable State law;
       (10) the term ``State'' means the several States, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, Guam, American Samoa, the 
     Northern Mariana Islands, the Trust Territory of the Pacific 
     Islands, and Indian tribes as defined by the Secretary;
       (11) the term ``county'' means county as defined in section 
     2 of title I, United States Code; and
       (12) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development.

     SEC. 484. APPLICABILITY.

       Single family mortgages encumbering real estate located in 
     any State may be foreclosed by the Secretary in accordance 
     with this subtitle, or pursuant to other foreclosure 
     procedures available, at the option of the Secretary.

     SEC. 485. DESIGNATION OF FORECLOSURE COMMISSIONER.

       A foreclosure commissioner or commissioners designated 
     pursuant to this subtitle shall have a nonjudicial power of 
     sale as provided in this subtitle. Where the Secretary wishes 
     to foreclose upon a single family mortgage, the Secretary may 
     designate a foreclosure commissioner and, with or without 
     cause, may designate a substitute foreclosure commissioner to 
     replace a previously designated foreclosure commissioner, by 
     executing a duly acknowledged, written designation stating 
     the name and business or residential address of the 
     commissioner or substitute commissioner. The designation 
     shall be effective upon execution. The foreclosure 
     commissioner, if a natural person, shall be a resident of the 
     State in which the security property is located and, if not a 
     natural person, the foreclosure commissioner must be duly 
     authorized to transact business under the laws of the State 
     in which the security property is located. The foreclosure 
     commissioner shall be a person who is responsible, 
     financially sound, and competent to conduct the foreclosure. 
     More than one foreclosure commissioner may be designated. If 
     a natural person is designated as foreclosure commissioner or 
     substitute foreclosure commissioner, such person shall be 
     designated by name, except that where such person is 
     designated in his or her capacity as an official or employee 
     of a government or corporate entity, such person may be 
     designated by his or her unique title or position instead of 
     by name.

     SEC. 486. PREREQUISITES TO FORECLOSURE.

       Foreclosure by the Secretary under this subtitle of a 
     single family mortgage may be commenced, as provided in 
     section 488, upon the breach of a covenant or condition in 
     the mortgage agreement for which foreclosure is authorized 
     under the mortgage, except that no such foreclosure may be 
     commenced unless any previously pending proceeding, judicial 
     or nonjudicial, separately instituted by the Secretary to 
     foreclose the mortgage other than under this subtitle has 
     been withdrawn, dismissed, or otherwise terminated. No such 
     separately instituted foreclosure proceeding on the mortgage 
     shall be instituted by the Secretary during the pendency of 
     foreclosure pursuant to this subtitle. Nothing in this 
     subtitle shall preclude the Secretary from enforcing any 
     right, other than foreclosure, under applicable Federal or 
     State law, including any right to obtain a monetary judgment. 
     Nothing in this subtitle shall preclude the Secretary from 
     foreclosing under this subtitle where the Secretary has 
     obtained or is seeking any other remedy available pursuant to 
     Federal or State law or under the mortgage agreement, 
     including, but not limited to, the appointment of a receiver, 
     mortgagee-in-possession status, or relief under an assignment 
     of rents.

     SEC. 487. NOTICE OF FORECLOSURE SALE.

       The notice of foreclosure sale to be served in accordance 
     with this subtitle shall be subscribed with the name and 
     address of the foreclosure commissioner and the date on which 
     subscribed, and shall set forth the following information:
       (1) The names of the Secretary, the original mortgagee (if 
     other than the Secretary), and the original mortgagor.
       (2) The street address or a description of the location of 
     the security property, and a description of the security 
     property, sufficient to identify the property to be sold.
       (3) The date of the mortgage, the office in which the 
     mortgage is recorded, and the liber and folio or other 
     description of the location of recordation of the mortgage.
       (4) The failure to make payment, including the due date of 
     the earliest installment payment remaining wholly unpaid as 
     of the date the notice is subscribed, or the description of 
     other default or defaults upon which foreclosure is based, 
     and the acceleration of the secured indebtedness.
       (5) The date, time, and place of the foreclosure sale.
       (6) A statement that the foreclosure is being conducted 
     pursuant to this subtitle.
       (7) The types of costs, if any, to be paid by the purchaser 
     upon transfer of title.
       (8) The amount and method of deposit to be required at the 
     foreclosure sale (except that no deposit shall be required of 
     the Secretary), the time and method of payment of the balance 
     of the foreclosure purchase price, and other appropriate 
     terms of sale.

     SEC. 488. COMMENCEMENT OF FORECLOSURE.

       (a) Request.--If the Secretary as holder of a single family 
     mortgage determines that the prerequisites to foreclosure set 
     forth in section 486 are satisfied, the Secretary may request 
     the foreclosure commissioner to commence foreclosure of a 
     single family mortgage. Upon such request, the foreclosure 
     commissioner shall commence foreclosure of the mortgage, by 
     commencing service of a notice of default and foreclosure 
     sale in accordance with section 489.
       (b) Substitute Commissioner.--After commencement of a 
     foreclosure under this subtitle, the Secretary may designate 
     a substitute foreclosure commissioner at any time before the 
     time of foreclosure sale, and the foreclosure shall continue 
     without prejudice, unless the substitute commissioner, in his 
     or her sole discretion, finds that continuation of the 
     foreclosure sale will unfairly affect the interests of the 
     mortgagor. If the substitute commissioner makes such a 
     finding, the substitute commissioner shall cancel the 
     foreclosure sale, or adjourn such sale in the manner provided 
     in section 491(c). Upon designation of a substitute 
     foreclosure commissioner, a copy of the written notice of 
     such designation referred to in section 485 shall be served 
     (1) by mail, as provided in such section 489 (except that the 
     minimum time periods between mailing and the date of 
     foreclosure sale prescribed in such section shall not apply), 
     or (2) in any other manner which, in the substitute 
     commissioner's sole discretion, is conducive to achieving 
     timely notice of such substitution.

     SEC. 489. SERVICE OF NOTICE OF FORECLOSURE.

       The foreclosure commissioner shall serve the notice of 
     foreclosure sale provided for in section 487 upon the 
     following persons and in the following manner, and no 
     additional notice shall be required to be served, 
     notwithstanding any notice requirements of any State or local 
     law:
       (1) Timing.--At least 45 days prior to the date of the 
     foreclosure sale, the notice of foreclosure sale required by 
     section 488 of this subtitle shall be filed in the manner 
     authorized for filing a notice of an action concerning real 
     property according to the law of the State where the security 
     property is located or, if none, in the manner authorized by 
     section 3201 of title 28, United States Code.
       (2) Notice by mail.--The notice of foreclosure sale shall 
     be sent by certified or registered mail, postage prepaid and 
     return receipt requested to the following:
       (A) The current security property owner of record, as the 
     record exists 60 days before the date originally set for 
     foreclosure sale, whether or not the notice describes a sale 
     adjourned as provided in this subtitle.
       (B) All mortgagors of record or other persons who appear of 
     record or in the mortgage agreement to be liable for part or 
     all of the mortgage debt, as the record exists 60 days before 
     the date originally set for foreclosure sale, whether or not 
     the notice describes a sale adjourned as provided in this 
     subtitle, except any such mortgagors or persons who have been 
     released.
       (C) All dwelling units in the security property, whether or 
     not the notice describes a sale adjourned as provided in this 
     subtitle.
       (D) All persons holding liens of record upon the security 
     property, as the record exists 60 days before the date 
     originally set for foreclosure sale, whether or not the 
     notice describes a sale adjourned as provided in this 
     subtitle.

     Notice under subparagraphs (A) and (B) of this paragraph 
     shall be mailed at least 45 days before the date of 
     foreclosure sale, and shall be mailed to the owner or 
     mortgagor at the last known address of the owner or 
     mortgagor, or, if none, to the address of the security 
     property, or, at the discretion of the foreclosure 
     commissioner, to any other address believed to be that of 
     such owner or mortgagor. Notice under subparagraph (C) of 
     this paragraph shall be mailed at least 45 days before the 
     date of foreclosure sale. If the names of the occupants of 
     the security property are not known to the Secretary, or the 
     security property has more than one dwelling, the notice 
     shall be posted at the security property at least 45 days 
     prior to the foreclosure sale. Notice under subparagraph (D) 
     of this paragraph shall be mailed at least 45 days before the 
     date of foreclosure sale, and shall be mailed to each such 
     lienholder's address as stated of record or, at the 
     discretion of the foreclosure commissioner, to any other 
     address believed to be that of such lienholder. Notice by 
     mail pursuant to this subsection or section 488(b) shall be 
     deemed duly given upon mailing, whether or not received by 
     the addressee and whether or not a return receipt is received 
     or the letter is returned.
       (3) Publication.--A copy of the notice of default and 
     foreclosure sale shall be published, as provided herein, once 
     a week during three successive calendar weeks before the sale 
     date. Such publication shall be in a newspaper or newspapers 
     having general circulation in the county or counties in which 
     the security property being sold is located. To the extent 
     practicable, the newspaper or newspapers chosen shall be a 
     newspaper or newspapers, if any is available, having 
     circulation conducive to achieving notice of foreclosure by 
     publication. A legal newspaper that is accepted as a 
     newspaper of legal record in the county or counties in which 
     the security property being sold is located shall be 
     considered a newspaper having general circulation for the 
     purposes of this paragraph. Should there be no newspaper 
     published at least weekly which has a general circulation in 
     one of the counties in which the security property being sold 
     is located, copies of the notice of default and foreclosure 
     sale shall be posted at the courthouse of any county or 
     counties in which the security property is located and at the 
     place where the sale is to be held at least 21 days before 
     the date of sale.

     SEC. 490. PRESALE REINSTATEMENT.

       (a) In General.--Except as provided in sections 488(b) and 
     491(c), the foreclosure commissioner shall withdraw the 
     security property from foreclosure and cancel the foreclosure 
     sale only if--
       (1) the Secretary so directs the commissioner prior to or 
     at the time of sale;
       (2) the commissioner finds, upon application of the 
     mortgagor at least three days before the date of sale, that 
     the default or defaults upon which the foreclosure is based 
     did not exist at the time of service of the notice of default 
     and foreclosure sale; or
       (3)(A) in the case of a foreclosure involving a monetary 
     default, there is tendered to the foreclosure commissioner 
     before public auction is completed the entire amount of 
     principal and interest which would be due if payments under 
     the mortgage had not been accelerated;
       (B) in the case of a foreclosure involving a nonmonetary 
     default, the foreclosure commissioner, upon application of 
     the mortgagor before the date of foreclosure sale, finds that 
     such default is cured; and
       (C) there is tendered to the foreclosure commissioner 
     before public auction is completed all amounts due under the 
     mortgage agreement (excluding additional amounts which would 
     have been due if mortgage payments had been accelerated), all 
     amounts of expenditures secured by the mortgage, and all 
     costs of foreclosure incurred for which payment from the 
     proceeds of foreclosure is provided in section 492, except 
     that the Secretary shall have discretion to refuse to cancel 
     a foreclosure pursuant to this paragraph if the current 
     mortgagor or owner of record has on one or more previous 
     occasions caused a foreclosure of the mortgage, commenced 
     pursuant to this subtitle or otherwise, to be canceled by 
     curing a default.
       (b) Opportunity to Secretary.--Before withdrawing the 
     security property from foreclosure in the circumstances 
     described in subsection (a)(2) or (a)(3), the foreclosure 
     commissioner shall afford the Secretary a reasonable 
     opportunity to demonstrate why the security property should 
     not be so withdrawn.
       (c) Effect on Mortgage.--In any case in which a foreclosure 
     commenced under this subtitle is canceled, the mortgage shall 
     continue in effect as though acceleration had not occurred.
       (d) Effect on Subsequent Foreclosure.--If the foreclosure 
     commissioner cancels a foreclosure sale under this subtitle a 
     new foreclosure may be subsequently commenced as provided in 
     this subtitle.
       (e) Notice of Cancellation.--The foreclosure commissioner 
     shall file a notice of cancellation in the same place and 
     manner provided for filing the notice of foreclosure sale in 
     section 489.

     SEC. 491. CONDUCT OF SALE AND ADJOURNMENT.

       (a) Time and Location.--Foreclosure sale pursuant to this 
     subtitle shall be at public auction, and shall be scheduled 
     to begin between the hours of 9 a.m. and 4 p.m. local time. 
     The foreclosure sale shall be held at a location specified in 
     the notice of default and foreclosure sale, which shall be a 
     location where foreclosure real estate auctions are 
     customarily held in the county or one of the counties in 
     which the property to be sold is located, or at a courthouse 
     therein, or at or on the property to be sold. Sale of 
     security property situated in two or more counties may be 
     held in any one of the counties in which any part of the 
     security property is situated. The foreclosure commissioner 
     may designate the order in which multiple tracts of security 
     are sold.
       (b) Sale Procedures.--The foreclosure commissioner shall 
     conduct the foreclosure sale in accordance with the 
     provisions of this subtitle and in a manner fair to both the 
     mortgagor and the Secretary. Written one-price sealed bids 
     shall be accepted by the foreclosure commissioner from the 
     Secretary and other persons for entry by announcement by the 
     commissioner at the sale. The Secretary and any other person 
     may bid at the foreclosure sale, including the Secretary or 
     any other person who has submitted a written one-price bid. 
     The foreclosure commissioner or any relative, related 
     business entity, or employee of such commissioner or entity 
     shall not be permitted to bid in any manner on the security 
     property subject to foreclosure sale, except that the 
     foreclosure commissioner or an auctioneer may be directed by 
     the Secretary to enter a bid on the Secretary's behalf. The 
     foreclosure commissioner may serve as auctioneer, or, in 
     accordance with regulations of the Secretary, may employ an 
     auctioneer to be paid from the commission provided for in 
     section 492(5).
       (c) Adjournment or Cancellation.--The foreclosure 
     commissioner shall have discretion, prior to or at the time 
     of sale to adjourn or cancel the foreclosure sale if the 
     commissioner determines, in the commissioner's discretion, 
     that circumstances are not conducive to a sale which is fair 
     to the mortgagor and the Secretary or that additional time is 
     necessary to determine whether the security property should 
     be withdrawn from foreclosure as provided in section 490. The 
     foreclosure commissioner may adjourn a sale to a later hour 
     the same day by announcing or posting the new time and place 
     of the foreclosure sale, or may adjourn the foreclosure sale 
     for not less than 9 nor more than 31 days, in which case the 
     commissioner shall serve a notice of default and foreclosure 
     sale revised to recite that the foreclosure sale has been 
     adjourned to a specified date and to include any corrections 
     the foreclosure commissioner deems appropriate. Such notice 
     shall be served by publication and mailing in accordance with 
     section 489, except that publication may be made on any of 3 
     separate days before the revised date of foreclosure sale, 
     and mailing may be made at any time at least 7 days before 
     the date to which the foreclosure sale has been adjourned.
       (d) Deposit.--The foreclosure commissioner may require a 
     bidder to make a cash deposit in an amount or percentage set 
     by him and stated in the notice of foreclosure sale before 
     the bid is accepted. A successful bidder at the foreclosure 
     sale who fails to comply with the terms of the sale may be 
     required to forfeit the cash deposit or, at the election of 
     the foreclosure commissioner after consultation with the 
     Secretary, shall be liable to the agency for any costs 
     incurred by the agency as a result of such failure.
       (e) Presumption.--Any foreclosure sale held in accordance 
     with this subtitle shall be conclusively presumed to have 
     been conducted in a legal, fair, and reasonable manner. The 
     sale price shall be conclusively presumed to be reasonable 
     and equal to the fair market value of the property.

     SEC. 492. FORECLOSURE COSTS.

       The following foreclosure costs shall be paid from the sale 
     proceeds before satisfaction of any other claim to such sale 
     proceeds:
       (1) Necessary advertising costs and postage incurred in 
     giving notice pursuant to sections 489 and 491.
       (2) Mileage for posting notices and for the foreclosure 
     commissioner's or auctioneer's attendance at the sale as 
     provided in section 1921 of title 28, United States Code, for 
     mileage by the most reasonable road distance.
       (3) Reasonable and necessary costs actually incurred in 
     connection with any necessary search of title and lien 
     records.
       (4) Necessary out-of-pocket costs incurred by the 
     foreclosure commissioner to record documents.
       (5) A commission for the foreclosure commissioner other 
     than an employee of the United States for the conduct of the 
     foreclosure to the extent authorized by the Secretary.

     SEC. 493. DISPOSITION OF SALE PROCEEDS.

       Money realized from a foreclosure sale shall be made 
     available for obligation and expenditure--
       (1) first, to cover the costs of foreclosure provided for 
     in section 492;
       (2) then, to pay valid tax liens or assessments if required 
     by the notice of foreclosure sale;
       (3) then, to pay any liens recorded before the recording of 
     the mortgage which are required to be paid in conformity with 
     the terms of sale in the notice of foreclosure sale;
       (4) then, to service charges and advances for taxes, 
     assessments, and property insurance premiums;
       (5) then, to the interest;
       (6) then, to the principal balance secured by the mortgage 
     (including expenditures for the necessary protection, 
     preservation, and repair of the security property as 
     authorized under the mortgage agreement and interest thereon 
     if provided for in the mortgage agreement); and
       (7) then, to late charges.

     Any surplus after payment of the foregoing shall be paid to 
     holders of liens recorded after the mortgage in the order of 
     priority under Federal law or the law of the State where the 
     security property is located and then to the appropriate 
     mortgagor. If the person to whom such surplus is to be paid 
     cannot be located, or if the surplus available is 
     insufficient to pay all claimants and the claimants cannot 
     agree on the allocation of the surplus, or if any person 
     claiming an interest in the mortgage proceeds does not agree 
     that some or all of the sale proceeds should be paid to a 
     claimant as provided in this section, that part of the sale 
     proceeds in question may be deposited by the foreclosure 
     commissioner with an appropriate official or court authorized 
     under law to receive disputed funds in such circumstances. If 
     such a procedure for the deposit of disputed funds is not 
     available, and the foreclosure commissioner files a bill of 
     interpleader or is sued as a stakeholder to determine 
     entitlement to such funds, the foreclosure commissioner's 
     necessary costs in taking or defending such action shall be 
     deductible from the disputed funds.

     SEC. 494. TRANSFER OF TITLE AND POSSESSION.

       (a) Delivery of Deed.--The foreclosure commissioner shall 
     deliver a deed or deeds to the purchaser or purchasers 
     without warranty or covenants to the purchaser or purchasers 
     and obtain the balance of the purchase price in accordance 
     with the terms of sale provided in the notice of default and 
     foreclosure sale. Notwithstanding State law to the contrary, 
     the commissioner's deed shall be a conveyance of property, 
     and no judicial proceeding shall be required ancillary or 
     supplementary to the procedures provided in this subtitle to 
     assure the validity of the conveyance or confirmation of such 
     conveyance.
       (b) Possession.--A purchaser at a foreclosure sale held 
     pursuant to this subtitle shall be entitled to possession 
     upon passage of title to the mortgaged property, subject to 
     an interest or interests not barred under section 496. Any 
     person remaining in possession after the passage of title 
     shall be deemed a tenant at sufferance subject to eviction 
     under local law.
       (c) Death of Purchaser.--If a purchaser dies before 
     execution and delivery of the deed conveying the property to 
     the purchaser, the foreclosure commissioner shall execute and 
     deliver the deed to the representative of the purchaser's 
     estate upon payment of the purchase price in accordance with 
     the terms of sale. Such delivery to the representative of the 
     purchaser's estate shall have the same effect as if 
     accomplished during the lifetime of the purchaser.
       (d) Bona Fide Purchaser.--The purchaser of property under 
     this subtitle shall be presumed to be a bona fide purchaser 
     without notice of defects, if any, in the title conveyed to 
     said purchaser if the purchaser would have been considered a 
     bona fide purchaser without notice had the sale been made 
     voluntarily and in person by the debtor.
       (e) Nullification of Right of Redemption.--There shall be 
     no right of redemption, or right of possession based upon 
     right of redemption, in the mortgagor or others subsequent to 
     a foreclosure pursuant to this subtitle. Section 204(l) of 
     the National Housing Act and section 701 of the Department of 
     Housing and Urban Development Reform Act of 1989 shall not 
     apply to mortgages foreclosed under this subtitle.
       (f) Tax.--When conveyance is made to the Secretary, no tax 
     shall be imposed or collected with respect to the foreclosure 
     commissioner's deed, whether as a tax upon the instrument or 
     upon the privilege of conveying or transferring title to the 
     property. Failure to collect or pay a tax of the type and 
     under the circumstances stated in the preceding sentence 
     shall not be grounds for refusing to record such a deed, for 
     failing to recognize such recordation as imparting notice, or 
     for denying the enforcement of such a deed and its provisions 
     in any State or Federal court.

     SEC. 495. RECORD OF FORECLOSURE AND SALE.

       (a) Record.--To establish a sufficient record of 
     foreclosure and sale, the foreclosure commissioner shall 
     include in the recitals of the deed to the purchaser or 
     prepare an affidavit or addendum to the deed stating--
       (1) the date, time and place of sale;
       (2) that the mortgage was held by the Secretary, the date 
     of the mortgage, the office in which the mortgage was 
     recorded, and the liber and folio or other description of the 
     recordation of the mortgage;
       (3) the particulars of the foreclosure commissioner's 
     service of notice of default and foreclosure sale in 
     accordance with sections 489 and 491;
       (4) the date and place of filing the notice of foreclosure 
     sale;
       (5) that the foreclosure was conducted in accordance with 
     the provisions of this subtitle and with the terms of the 
     notice of default and foreclosure sale; and
       (6) the sale amount.
       (b) Effect of Statements.--The statements set forth in 
     subsection (a) shall be prima facie evidence of the truth of 
     such recitals and statement of facts in any Federal or State 
     court; and shall be a conclusive presumption in favor of bona 
     fide purchasers and encumbrancers for value without notice. 
     Encumbrancers for value include liens placed by lenders who 
     provide the purchaser with purchase money in exchange for a 
     security interest in the newly-conveyed property.
       (c) Recordation.--The deed executed by the foreclosure 
     commissioner, the foreclosure commissioner's affidavit and 
     any other instruments submitted for recordation in relation 
     to the foreclosure of the security property under this 
     subtitle shall be accepted for recordation by the registrar 
     of deeds or other appropriate official of the county or 
     counties in which the security property is located upon 
     tendering of payment of the usual recording fees for such 
     instruments without regard to the compliance of those 
     instruments with local filing requirements.

     SEC. 496. EFFECT OF SALE.

       A sale, made and conducted as prescribed in this subtitle 
     to a bona fide purchaser, shall be an entire bar of all 
     claims upon, or with respect to, the property sold, of each 
     of the following persons:
       (1) Any person to whom the notice of foreclosure sale was 
     mailed as provided in this subtitle, and the heir, devisee, 
     executor, administrator, successor or assignee claiming under 
     any such person.
       (2) Any person claiming any interest in the property 
     subordinate to that of the mortgage, if such person had 
     actual knowledge of the sale.
       (3) Each person, claiming any interest in the property, 
     whose assignment, mortgage, or other conveyance was not duly 
     recorded or filed in the proper place for recording or 
     filing, or whose judgment or decree was not duly docketed or 
     filed in the proper place for docketing or filing, prior to 
     the date on which the notice of sale was first served by 
     publication, as required by section 489(2); and the executor, 
     administrator, or assignee of such a person.
       (4) Every other person claiming under a statutory lien or 
     encumbrance created subsequent to the recording or filing of 
     the mortgage being foreclosed, attaching to the title or 
     interest of any person designated in any of the foregoing 
     subsections of this section.

     SEC. 497. COMPUTATION OF TIME.

       Periods of time provided for in this subtitle shall be 
     calculated in consecutive calendar days including the day or 
     days on which the actions or events occur or are to occur for 
     which the period of time is provided and including the day on 
     which an event occurs or is to occur from which the period is 
     to be calculated.

     SEC. 498. SEPARABILITY.

       If any clause, sentence, paragraph, or part of this 
     subtitle shall, for any reason, be adjudged by a court of 
     competent jurisdiction to be invalid or invalid as applied to 
     a class of cases, such judgment shall not affect, impair, or 
     invalidate the remainder thereof and of this subtitle, but 
     shall be confined in its operation to the clause, sentence, 
     paragraph, or part thereof directly involved in the 
     controversy in which such judgment shall have been rendered.

     SEC. 499. DEFICIENCY JUDGMENT.

       (a) In General.--If after deducting the disbursements 
     provided for in section 493 of this subtitle, the price at 
     which the security property is sold at a foreclosure sale is 
     less than the unpaid balance of the debt secured by the 
     security property, resulting in a deficiency, the Secretary 
     may refer the matter to the Attorney General who may commence 
     an action or actions against any or all debtors to recover 
     the deficiency, unless specifically prohibited by the 
     mortgage. The United States is also entitled to recover any 
     amount authorized by section 3011 of title 28, United States 
     Code, and costs of the action.
       (b) Limitation.--Any action commenced to recover the 
     deficiency must be brought within 6 years of the last sale of 
     the security property.
                         TITLE V--RURAL HOUSING

     SEC. 501. PROGRAM AUTHORIZATIONS.

       (a) Insurance and Guarantee Authority.--Section 513(a) of 
     the Housing Act of 1949 (42 U.S.C. 1483(a)) is amended to 
     read as follows:
       ``(a) Insurance and Guarantee Authority.--
       ``(1) In general.--The Secretary may, to the extent 
     approved in appropriation Acts, insure and guarantee loans 
     under this title during fiscal years 1995 and 1996, in 
     aggregate amounts not to exceed $3,231,103,950 and 
     $3,360,037,069, respectively, as follows:
       ``(A) For insured or guaranteed loans under section 502 on 
     behalf of low-income borrowers receiving assistance under 
     section 521(a)(1), $1,802,500,000 for fiscal year 1995 and 
     $1,856,575,000 for fiscal year 1996.
       ``(B) For guaranteed loans under section 502(h) on behalf 
     of low- and moderate-income borrowers, $772,500,000 for 
     fiscal year 1995 and $795,675,000 for fiscal year 1996.
       ``(C) For loans under section 504, $36,050,000 for fiscal 
     year 1995 and $37,131,500 for fiscal year 1996.
       ``(D) For insured loans under section 514, $18,053,950 for 
     fiscal year 1995 and $18,595,569 for fiscal year 1996.
       ``(E) For insured loans under section 515, $600,000,000 for 
     fiscal year 1995 and $650,000,000 for fiscal year 1996.
       ``(F) For loans under section 523(b)(1)(B), $1,000,000 for 
     fiscal year 1995 and $1,030,000 for fiscal year 1996.
       ``(G) For site loans under section 524, $1,000,000 for 
     fiscal year 1995 and $1,030,000 for fiscal year 1996.
       ``(2) Limitation on use.--Notwithstanding any other 
     provision of law, insured or guaranteed loan authority in 
     this title for any fiscal year shall not be transferred or 
     used for any purpose not specified in this title.''.
       (b) Authorization of Appropriations.--Section 513(b) of the 
     Housing Act of 1949 (42 U.S.C. 1483(b)) is amended to read as 
     follows:
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 1995 and 1996, 
     and to remain available until expended, the following 
     amounts:
       ``(1) For grants under section 502(c)(5)(C)(i), $10,000,000 
     for fiscal year 1995, and $10,000,000 for fiscal year 1996.
       ``(2) For grants under section 504, $31,000,000 for fiscal 
     year 1995 and $31,930,000 for fiscal year 1996.
       ``(3) For purposes of section 509(c), $1,000,000 for fiscal 
     year 1995 and $1,030,000 for fiscal year 1996.
       ``(4) For project preparation grants under section 
     509(f)(6), $5,688,278 for fiscal year 1995 and $5,858,926 for 
     fiscal year 1996.
       ``(5) In fiscal years 1995 and 1996, such sums as may be 
     necessary to meet payments on notes or other obligations 
     issued by the Secretary under section 511 equal to--
       ``(A) the aggregate of the contributions made by the 
     Secretary in the form of credits on principal due on loans 
     made pursuant to section 503; and
       ``(B) the interest due on a similar sum represented by 
     notes or other obligations issued by the Secretary.
       ``(6) For grants for service coordinators under section 
     515(y), $1,073,260 for fiscal year 1995 and $1,105,458 for 
     fiscal year 1996.
       ``(7) For financial assistance under section 516--
       ``(A) for low-rent housing and related facilities for 
     domestic farm labor under subsections (a) through (j) of such 
     section, $15,000,000 for fiscal year 1995 and $18,000,000 for 
     fiscal year 1996; and
       ``(B) for housing for rural homeless and migrant 
     farmworkers under subsection (k) of such section, $10,269,230 
     for fiscal year 1995 and $11,407,307 for fiscal year 1996.
       ``(8) For grants under section 523(f), $14,918,314 for 
     fiscal year 1995 and $15,365,863 for fiscal year 1996.
       ``(9) For grants under section 533, $33,056,408 for fiscal 
     year 1993 and $34,048,100 for fiscal year 1994.
       ``(10) For grants under section 538, $10,000,000 for fiscal 
     year 1995, which shall remain available until the end of 
     fiscal year 1997.
       ``(11) For assistance under section 539, $10,000,000 for 
     fiscal year 1995 and $12,000,000 for fiscal year 1996.''.
       (c) Rental Assistance Payment Contracts.--Section 513(c) of 
     the Housing Act of 1949 (42 U.S.C. 1483(c)(1)) is amended by 
     striking ``(c)'' and all that follows through the end of 
     paragraph (1) and inserting the following:
       ``(c) Rental and Operating Assistance.--(1) The Secretary, 
     to the extent approved in appropriations Acts for fiscal 
     years 1995 and 1996, may enter into rental assistance payment 
     contracts under section 521(a)(2)(A) and contracts for 
     operating assistance under section 521(a)(5), aggregating 
     $454,079,620 for fiscal year 1995 and $467,702,009 for fiscal 
     year 1996.''.
       (d) Supplemental Rental Assistance Payment Contracts.--
     Section 513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) 
     is amended to read as follows:
       ``(d) Supplemental Rental Assistance Contracts.--The 
     Secretary, to the extent approved in appropriations Acts for 
     fiscal years 1995 and 1996, may enter into 5-year 
     supplemental rental assistance contracts under section 
     502(c)(5)(D) aggregating $13,070,160 for fiscal year 1995 and 
     $13,462,265 for fiscal year 1996.''.
       (e) Rural Housing Voucher Authority.--Section 513(e) of the 
     Housing Act of 1949 (42 U.S.C. 1483(e)) is amended to read as 
     follows:
       ``(e) Rural Housing Vouchers.--There are authorized to be 
     appropriated for rural housing vouchers under section 542, 
     $30,000,000 for fiscal year 1995 and $40,000,000 for fiscal 
     year 1996.''.
       (f) Rental Housing Loan Authority.--Section 515(b) of the 
     Housing Act of 1949 (42 U.S.C. 1485(b)) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.

     SEC. 502. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL HOUSING 
                   PROGRAMS.

       Section 501(b)(6) of the Housing Act of 1949 (42 U.S.C. 
     1471(b)(6)) is amended by adding at the end the following new 
     sentence: ``In any case in which assistance made available 
     under this title may be provided to a State or State agency 
     or in which a State or State agency is eligible to 
     participate in a program or activity under this title, such 
     assistance may also be provided to Indian tribes and tribal 
     agencies and Indian tribes and tribal agencies shall be 
     eligible to participate, respectively.''.

     SEC. 503. ESCROW FUND.

       Section 501(e) of the Housing Act of 1949 (42 U.S.C. 
     1471(e)) is amended by striking the third and fourth 
     sentences and inserting the following: ``The Secretary may 
     establish in the Treasury of the United States an escrow fund 
     for the deposit of such periodic payments. The Secretary may 
     direct the Secretary of the Treasury to invest and reinvest 
     amounts in the escrow fund in public debt securities with 
     maturities suitable for the needs of the escrow fund and 
     bearing interest at rates determined by the Secretary of the 
     Treasury, taking into consideration the current average 
     market yield on outstanding marketable obligations of the 
     United States of comparable maturities. Any interest earned 
     shall be credited to the escrow fund. The Secretary shall 
     disburse amounts at the appropriate time or times for the 
     purposes for which the amounts were escrowed in the fund. The 
     interest rate to be paid on escrowed amounts shall be 
     determined annually based on the interest earned less an 
     amount not to exceed 1 percent which shall be used for 
     expenses in carrying out the provisions of this title.''.

     SEC. 504. SECTION 502 HOMEOWNERSHIP LOANS.

       (a) Remote Rural Areas.--Section 502(f) of the Housing Act 
     of 1949 (42 U.S.C. 1472(f)) is amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraph (2) as paragraph (1); and
       (3) by adding at the end the following new paragraph:
       ``(2) Security.--In making a loan under this section for 
     housing located in a rural area that is a remote rural area 
     (which shall include tribal allotted or Indian trust land) 
     where the borrower resides or is employed, the Secretary 
     shall consider the actual replacement cost of the property 
     and structure for which the loan is made as adequate security 
     for the loan required under subsection (b).''.
       (b) Permanent Deferred Mortgage Program.--Section 502(g) of 
     the Housing Act of 1949 (42 U.S.C. 1472(g)) is amended to 
     read as follows:
       ``(g) Deferred Mortgage Program.--With respect to families 
     or persons otherwise eligible for assistance under subsection 
     (d) but having incomes below the amount determined to qualify 
     for a loan under this section, the Secretary may defer 
     mortgage payments beyond the amount affordable at 1 percent 
     interest, taking into consideration income, taxes and 
     insurance. Deferred mortgage payments shall be converted to 
     payment status when the ability of the borrower to repay 
     improves.''.
       (c) Reamortization.--Section 505 of the Housing Act of 1949 
     (42 U.S.C. 1475) is amended--
       (1) in the section heading, by inserting ``, 
     reamortization,'' after ``moratorium'';
       (2) in subsection (a), by inserting before the last 
     sentence the following: ``The Secretary may not foreclose 
     such a mortgage securing such a loan upon which a moratorium 
     has been granted solely because the borrower does not have 
     the ability to repay the loan. Upon the expiration of a 
     moratorium, the Secretary shall enter into an agreement with 
     the borrower providing to the borrower such assistance as the 
     Secretary is authorized to provide under this title and may 
     foreclose with respect to the loan only if the borrower fails 
     to make 3 monthly payments required under such agreement.'';
       (3) by redesignating subsection (b) as subsection (c); and
       (4) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Reamortization.--
       ``(1) Authority.--With respect to a loan made under section 
     502, after a moratorium under subsection (a) of this section 
     for the loan or at any other time the Secretary considers 
     appropriate, the Secretary may reamortize the outstanding 
     indebtedness, including principal and interest, under the 
     loan for a period not to exceed 38 years from the date of the 
     making of the loan, subject to the provisions of paragraph 
     (2).
       ``(2) Graduated repayment agreement.--In reamortizing a 
     loan pursuant to paragraph (1), the Secretary may lower the 
     interest rate to the existing lending rate for loans under 
     section 502 or establish a schedule of payments under the 
     loan that provides, after the application of interest credit, 
     for payments in an amount less than the amount of the 
     payments originally provided for under the loan agreement for 
     a period not exceeding that required to amortize the loan 
     over its term, except that such period may not exceed 3 
     years.''.
       (d) Eligibility of Area.--Section 502 of the Housing Act of 
     1949 (42 U.S.C. 1472) is amended by adding at the end the 
     following new subsection:
       ``(i) Notwithstanding section 520, the Secretary may make 
     loans under this section for properties in the Pinewest 
     Subdivision, located in Gibsonville, North Carolina, in the 
     same manner as provided under this section for properties in 
     rural areas.''.

     SEC. 505. LOAN GUARANTEES.

       Section 502(h)(11) of the Housing Act of 1949 (42 U.S.C. 
     1472(h)(11)) is amended by adding at the end the following 
     new sentence: ``The Secretary may not pool or reallocate any 
     authority to guarantee loans under this section that was 
     allocated for use in any State before August 1 of the fiscal 
     year in which such authority was allocated.''.

     SEC. 506. PREPAYMENT OF RURAL RENTAL HOUSING LOANS.

       (a) Technical Assistance Grants and Loans for Nonprofit and 
     Public Agency Purchasers of Prepayment Properties.--Section 
     502(c)(5)(C)(i) of the Housing Act of 1949 (42 U.S.C. 
     1472(c)(5)(C)(i)) is amended to read as follows:
       ``(i) to the extent provided in appropriation Acts, make a 
     grant or predevelopment loan in an amount not exceeding 
     $50,000 to the nonprofit organization or public agency whose 
     offer to purchase is accepted under this paragraph to cover 
     reasonable costs, as determined by the Secretary and not 
     including the purchase price, incurred by the organization or 
     agency in purchasing and assuming responsibilities for the 
     housing and related facilities involved, which may include 
     costs for pursuing acquisition, appraisals, financing fees, 
     accounting, administration, consultants, legal assistance, 
     architectural assistance, engineering assistance, application 
     fees, overhead, and other expenses;''.
       (b) Equity Takeout Loans.--
       (1) Authority and limitation.--Section 502(c)(4)(B)(iv) of 
     the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is 
     amended by inserting before the period at the end the 
     following: ``or under paragraphs (1) and (2) of section 
     514(j), except that an equity loan referred to in this clause 
     may not be made available after the date of the enactment of 
     the Housing and Community Development Act of 1994 unless the 
     Secretary determines that the other incentives available 
     under this subparagraph are not adequate to provide a fair 
     return on the investment of the borrower, to prevent 
     prepayment of the loan insured under section 514 or 515, or 
     to prevent the displacement of tenants of the housing for 
     which the loan was made''.
       (2) Approval of assistance.--Subparagraph (C) of section 
     502(c)(4) of the Housing Act of 1949 is amended by striking 
     the matter preceding clause (i) and inserting the following:
       ``(C) Approval of Assistance.--The Secretary may approve 
     assistance under subparagraph (B) for assisted housing only 
     if the restrictive period has expired for any loan for the 
     housing made or insured under section 514 or 515 pursuant to 
     a contract entered into after December 21, 1979, but before 
     the date of the enactment of the Department of Housing and 
     Urban Development Reform Act of 1989, and the Secretary 
     determines that the combination of assistance provided--''.
       (3) Loan terms.--Section 514 of the Housing Act of 1949 (42 
     U.S.C. 1484) is amended by adding at the end the following 
     new subsection:
       ``(j) Equity Takeout Loans for Preservation of Low-Income 
     Housing.--With respect to a loan insured under subsection 
     (a), the Secretary may--
       ``(1) make or insure an equity loan in the form of a 
     supplemental loan for the purpose of equity takeout to the 
     owner of housing financed with a loan insured under this 
     section pursuant to a contract entered into before December 
     15, 1989, for the purpose of extending the affordability of 
     the housing for low-income families or persons and very low-
     income families or persons for not less than 20 years, except 
     that such loan may not exceed 90 percent of the value of the 
     equity in the project as determined by the Secretary;
       ``(2) transfer and reamortize an existing loan in 
     connection with assistance provided under paragraph (1); and
       ``(3) make or insure a loan to enable a nonprofit 
     organization or public agency to make a purchase described in 
     section 502(c)(5).''.
       (4) Technical correction relating to section 515 housing.--
     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''.
       (c) Phase-In of Rent Increases.--Section 502(c)(4)(B)(vi) 
     of the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(vi)) is 
     amended by inserting before the period at the end the 
     following: ``, except that any such increase in rents for 
     current tenants (except for increases made necessary by 
     increases in operating costs) shall (I) be phased in equally 
     over a period of not less than 3 years, if such increase is 
     30 percent or more, and (II) be limited to not more than 10 
     percent per year if such increase is more than 10 percent but 
     less than 30 percent''.
       (d) Treatment of Acceleration Upon Default.--Section 502 of 
     the Housing Act of 1949 (42 U.S.C. 1472) is amended--
       (1) in subsection (b)(2), by inserting ``or any payment in 
     the case of acceleration of the amount due under such a loan 
     pursuant to any default,'' after ``515''; and
       (2) in subsection (c)--
       (A) in paragraph (1)(A), by inserting before the 1st comma 
     the following: ``, accept any payment tendered in the case of 
     acceleration of the amount due pursuant to any default on'';
       (B) in paragraph (1)(B), by inserting before the 1st comma 
     the following: ``, accept any payment tendered in the case of 
     acceleration of the amount due pursuant to any default on'';
       (C) in paragraph (2)--
       (i) by inserting after ``prepaid'' the following: ``, paid 
     in full pursuant to acceleration of the amount due resulting 
     from default,''; and
       (ii) by inserting ``, payment,'' after ``prepayment'';
       (D) in paragraph (4)(A), by inserting after ``prepay,'' the 
     following: ``accepting any payment tendered in the case of 
     acceleration of the amount due pursuant to any default on,''; 
     and
       (E) in paragraph (5)--
       (i) in subparagraph (A)(ii), by inserting after ``prepay,'' 
     the following: ``accept the payment tendered in the case of 
     acceleration of the amount due pursuant to default on,'';
       (ii) in the 1st sentence of subparagraph (F), by inserting 
     after ``prepay,'' the following: ``accept payment tendered in 
     the case of acceleration of the amount due pursuant to 
     default on,'';
       (iii) in the 2d sentence of subparagraph (F), by inserting 
     after ``prepay,'' the following: ``payment tendered in the 
     case of acceleration of the amount due pursuant to 
     default,'';
       (iv) in the last sentence of subparagraph (F), by striking 
     ``offers to prepay,'' and inserting the following: ``such 
     offers to prepay, payments in the case of acceleration of the 
     amount due pursuant to default,''; and
       (v) in the matter in subparagraph (G) that precedes clause 
     (i), by inserting after ``prepay,'' the following: ``any 
     payment tendered in the case of acceleration of the amount 
     due pursuant to default on,''.
       (e) Test for Allowable Prepayment.--Section 
     502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C. 
     1472(c)(5)(G)(ii)) is amended to read as follows:
       ``(ii) the Secretary makes a written finding that--
       ``(I) prepayment, payment in the case of acceleration, or 
     refinancing will not (a) materially increase economic 
     hardship for current tenants, and (b) involuntarily displace 
     current tenants (except for good cause), where comparable and 
     affordable housing is not readily available at the time of 
     displacement, determined without regard to the availability 
     of Federal housing assistance that would address any such 
     hardship or involuntary displacement; and
       ``(II) the supply of vacant, comparable housing is 
     sufficient to ensure that such prepayment will not materially 
     affect (a) the availability of decent, safe, and sanitary 
     housing affordable to low-income and very low-income families 
     or persons in the area that the housing could reasonably be 
     expected to serve, (b) the ability of low-income and very 
     low-income families or persons to find affordable, decent, 
     safe, and sanitary housing near employment opportunities, or 
     (c) the housing opportunities of minorities in the community 
     within which the housing is located.''.

     SEC. 507. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF 
                   ASSISTANCE.

       (a) Reauthorization and Set-Aside.--Section 509(f)(4) of 
     the Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended--
       (1) in subparagraph (A)--
       (A) in the first sentence--
       (i) by striking ``5.0 percent in fiscal years 1993 and 
     1994'' and inserting ``not less than 5 percent or more than 
     10 percent for each of fiscal years 1995 and 1996''; and
       (ii) by striking ``514, 515, and 524'' and inserting ``and 
     515''; and
       (B) in the second sentence, by striking ``sections 514 and 
     515'' and inserting ``section 515''; and
       (2) in subparagraph (B)(ii), by striking ``5 percent'' and 
     inserting ``10 percent''.
       (b) Poverty Level for Designation.--Section 509(f)(1) of 
     the Housing Act of 1949 is amended--
       (1) in subparagraph (A), by striking ``20 percent'' and 
     inserting ``15 percent''; and
       (2) in subparagraph (B), by striking ``10 percent'' and 
     inserting ``5 percent''.
       (c) Poverty Level for Preference.--Section 509(f)(2) of the 
     Housing Act of 1949 is amended--
       (1) in subparagraph (A), by striking ``28 percent'' and 
     inserting ``20 percent''; and
       (2) in subparagraph (B), by striking ``13 percent'' and 
     inserting ``7 percent''.
       (d) Additional Qualification as Underserved Area.--Section 
     509(f)(1) of the Housing Act of 1949 is amended by inserting 
     after subparagraph (B) the following new flush sentence:
     ``The Secretary may also designate a county or community as a 
     targeted underserved area if the Secretary determines that 
     the county or community has severe unmet housing needs, 
     including needs caused by severe economic and social 
     dislocation such as natural disasters, structural employment 
     changes, or persistent poverty, or has experienced long-term 
     population and job losses.''.
       (e) Geographical Diversity.--Section 509(f)(1) of the 
     Housing Act of 1949 is amended by adding at the end the 
     following: ``In designating targeted underserved areas under 
     this paragraph for any fiscal year, the Secretary may not 
     designate more than 10 counties and communities located in 
     any single State or in the Commonwealth of Puerto Rico. If 
     more than 10 counties and communities in any single State or 
     the Commonwealth of Puerto Rico qualify under this paragraph 
     for designation as an underserved area, the Secretary shall 
     designate the counties and communities for which the sum of 
     the percentages under subparagraphs (A) and (B) are the 
     greatest.''.
       (f) 2-Year and 3-Year Designations.--Section 509(f) of the 
     Housing Act of 1949 (42 U.S.C. 1479(f)) is amended--
       (1) in paragraph (1)--
       (A) in the 1st sentence, by striking ``in each fiscal 
     year''; and
       (B) in the 2d sentence, by striking ``year in'' and 
     inserting ``first year for'';
       (2) in paragraph (2)--
       (A) in the first sentence, by striking ``paragraph (4)'' 
     and inserting ``paragraph (5)''; and
       (B) by striking the last sentence;
       (3) in paragraph (3)(B), by striking ``paragraph (2)'' and 
     inserting ``paragraph (3)'';
       (4) in paragraph (4)(A), by striking ``paragraph (7)'' and 
     inserting ``paragraph (8)'';
       (5) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively; and
       (6) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Timing and duration of designations.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall redesignate the targeted underserved 
     areas under this subsection once every 2 fiscal years and 
     such designations shall remain in effect for a period of 2 
     fiscal years. The first such 2-year designation shall be made 
     for fiscal years 1995 and 1996.
       ``(B) Designations for indian areas.--The Secretary shall 
     ensure that, at all times, not less than 5 counties or 
     communities that contain tribal allotted or Indian trust land 
     are included among the 100 counties and communities 
     designated as targeted underserved areas. The Secretary shall 
     redesignate the counties or communities designated as a 
     targeted underserved area in compliance with this 
     subparagraph once every 3 fiscal years and such designations 
     shall remain in effect for 3 fiscal years. The first such 3-
     year designation shall be made for fiscal years 1995 through 
     1997. Upon designation, the Secretary shall specify any 
     targeted underserved area designated in compliance with this 
     subparagraph.''.

     SEC. 508. ADMINISTRATIVE APPEALS.

       (a) Appeals.--Section 510(g) of the Housing Act of 1949 (42 
     U.S.C. 1480(g)) is amended--
       (1) by inserting after ``termination and'' the following: 
     ``, in the case of any eviction not related to any drug-
     related or criminal activity, nonpayment of rent, or activity 
     that threatens the health, safety, or right to peaceful 
     enjoyment of the premises by other residents,''; and
       (2) by inserting after ``reverse the decision'' the 
     following: ``and is mutually selected within a reasonable 
     period of time by the person adversely affected by the 
     reduction or termination of assistance and the person 
     reducing or terminating assistance''.
       (b) Attorneys.--Section 510(d)(1) of the Housing Act of 
     1949 is amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``or 515'' after ``502''; and
       (2) in subparagraph (C)(ii), by inserting ``with respect to 
     litigation under section 502,'' before ``representation''.

     SEC. 509. SECTION 515 RURAL RENTAL HOUSING.

       (a) Loan Term.--Section 515(a)(2) of the Housing Act of 
     1949 (42 U.S.C. 1485(a)(2)) is amended by inserting before 
     the semicolon the following: ``, except that the Secretary 
     may also make loans for a period of up to 30 years from the 
     making of the loan''.
       (b) Development Cost.--Section 515(e)(4) of the Housing Act 
     of 1949 is amended by inserting ``franchise fees,'' after 
     ``impact fees,''.
       (c) Limitation on Project Transfers.--Section 515 of the 
     Housing Act of 1949 (42 U.S.C. 1485) is amended by inserting 
     after subsection (g) the following new subsection:
       ``(h) Project Transfers.--After the date of the enactment 
     of the Housing and Community Development Act of 1994, any 
     interest in the ownership of a project for which a loan is 
     made or insured under this section may be transferred only if 
     the Secretary determines that such transfer would be in the 
     best interests of the tenants of the housing for which the 
     loan was made or insured and of the Federal Government.''.
       (d) Equity Loans.--Section 515(t) of the Housing Act of 
     1949 is amended--
       (1) by striking paragraphs (4) and (5); and
       (2) by redesignating paragraphs (6) through (8) as 
     paragraphs (4) through (6), respectively.
       (e) Set-Aside for Nonprofit Entities.--The first sentence 
     of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(w)(1)) is amended by striking ``fiscal years 1993 and 
     1994'' and inserting ``fiscal years 1995 and 1996''.
       (f) Authority for Streamlined Mortgage Modifications.--
     Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is 
     amended by adding at the end the following new subsection:
       ``(aa) Mortgage Modifications.--
       ``(1) Purpose and authority.--In order to reduce the amount 
     of debt service payments and operating costs of borrowers 
     under loans made or insured under this section, reduce rents 
     paid by residents of housing financed with such loans, and 
     reduce the amount of rental assistance necessary for such 
     housing, the Secretary may refinance the outstanding 
     principal obligation of a loan made under this subsection in 
     accordance with the provisions applicable (at the time of 
     such refinancing) to loans made under this section that the 
     Secretary determines are appropriate for purposes of this 
     subsection and the terms and conditions of the original loan.
       ``(2) Use of housing.--Any terms of the original loan 
     relating to use of the housing and related facilities for the 
     purposes specified in this section shall continue to apply to 
     the housing in the same manner as if the loan were not 
     modified under this subsection.
       ``(3) Treatment of modified mortgage under prepayment 
     restrictions.--Any loan modified under this subsection shall 
     be considered a loan originally made under this section, for 
     purposes of the limitations under subsection (c) on 
     prepayment and refinancing under subsection (b)(3). For 
     purposes of determining the financial status of the loan or 
     the housing securing the loan, the Secretary may consider the 
     terms of the refinancing.
       ``(4) Terms.--The Secretary shall, by regulation, establish 
     any requirements and conditions the Secretary considers 
     appropriate to provide for refinancing under this subsection, 
     including any limitations on term of the refinancing loan.
       ``(5) Expedited procedure.--The Secretary shall establish 
     an expedited procedure for providing refinancing under this 
     subsection, which--
       ``(A) shall not require application under the same 
     procedures applicable to loans made under subsection (a); and
       ``(B) shall take into consideration any information 
     obtained by the Secretary in making and servicing the loan 
     under subsection (a) for which refinancing under this 
     subsection is requested.''.

     SEC. 510. OPTIONAL CONVERSION OF RENTAL ASSISTANCE PAYMENTS 
                   TO OPERATING SUBSIDY FOR MIGRANT FARMWORKER 
                   PROJECTS.

       (a) In General.--Section 521(a) of the Housing Act of 1949 
     (42 U.S.C. 1490a(a)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Operating Assistance for Migrant Farmworker 
     Projects.--
       ``(A) Authority.--In the case of housing (and related 
     facilities) for migrant farmworkers provided or assisted with 
     a loan under section 514 or a grant under section 516, the 
     Secretary may, at the request of the owner of the project, 
     use amounts provided for rental assistance payments under 
     paragraph (2) to provide assistance for the costs of 
     operating the project. Any project assisted under this 
     paragraph may not receive rental assistance under paragraph 
     (2).
       ``(B) Amount.--In any fiscal year, the assistance provided 
     under this paragraph for any project shall not exceed an 
     amount equal to 90 percent of the operating costs for the 
     project for the year, as determined by the Secretary. The 
     amount of assistance to be provided for a project under this 
     paragraph shall be an amount that makes units in the project 
     available to migrant farmworkers in the area of the project 
     at rates generally not exceeding 30 percent of the monthly 
     adjusted incomes of such farmworkers, based on the prevailing 
     incomes of such farmworkers in the area.
       ``(C) Submission of information.--The owner of a project 
     assisted under this paragraph shall be required to provide to 
     the Secretary, at least annually, a budget of operating 
     expenses and estimated rental income, which the Secretary 
     shall use to determine the amount of assistance for the 
     project.
       ``(D) Definitions.--For purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) The term `migrant farmworker' shall have the same 
     meaning given the term in section 516(k)(7).
       ``(ii) The term `operating cost' means expenses incurred in 
     operating a project, including expenses for--
       ``(I) administration, maintenance, repair, and security of 
     the project;
       ``(II) utilities, fuel, furnishings, and equipment for the 
     project; and
       ``(III) maintaining adequate reserve funds for the 
     project.''.
       (b) Conforming Amendments.--Title V of the Housing Act of 
     1949 (42 U.S.C. 1471 et seq.) is amended--
       (1) in section 502--
       (A) in subsection (c)(1)(A)(i), by striking ``or (a)(2)'' 
     and inserting ``, (a)(2), or (5)'';
       (B) in subsection (c)(4)(B)(ii), by inserting before the 
     period at the end the following: ``, or additional assistance 
     or an increase in assistance provided under section 
     521(a)(5)'';
       (C) in subsection (c)(4)(B)(iii), by inserting before the 
     period at the end the following: ``, or current tenants of 
     projects not assisted under section 521(a)(5)'';
       (D) in subsection (c)(5)(C)(iii)--
       (i) by striking the 2d comma; and
       (ii) by inserting ``or any assistance payments received 
     under section 521(a)(5),'' before ``with respect'';
       (E) in subsection (c)(5)(D), by inserting before the period 
     at the end the following: ``or, in the case of housing 
     assisted under section 521(a)(5), does not exceed the rents 
     established for the project under such section'';
       (2) in the second sentence of section 509(f)(5) (as 
     redesignated by the preceding provisions of this title), by 
     striking ``an amount of section 521 rental assistance'' and 
     inserting ``, from amounts available for assistance under 
     paragraphs (2) and (5) of section 521(a), an amount'';
       (3) in section 513(c)(2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or contracts for operating assistance under section 
     521(a)(5)'' after ``521(a)(2)(A)'';
       (B) in subparagraph (A), by inserting ``or operating 
     assistance contracts'' after ``contracts'';
       (C) in subparagraph (B), by striking ``rental'' each place 
     it appears; and
       (D) in subparagraph (C), by inserting ``or operating 
     assistance contracts'' after ``contracts'';
       (4) in section 521(a)(2)(B)--
       (A) by inserting ``or paragraph (5)'' after ``this 
     paragraph''; and
       (B) by striking ``which shall'' and all that follows 
     through the period at the end and inserting the following: 
     ``. The budget (and the income, in the case of a project 
     assisted under this paragraph) shall be used to determine the 
     amount of the assistance for each project.'';
       (5) in section 521(c), by striking ``subsection (a)(2)'' 
     and inserting ``subsections (a)(2) and (a)(5)'';
       (6) in section 521(e), by inserting after ``recipient'' the 
     following: ``or any tenant in a project assisted under 
     subsection (a)(5)''; and
       (7) in section 530, by striking ``rental assistance 
     payments with respect to such project under section 
     521(a)(2)(A)'' and inserting ``assistance payments with 
     respect to such project under section 521(a)(2)(A) or 
     521(a)(5)''.

     SEC. 511. DEFINITION OF RURAL AREA.

       The last sentence of section 520 of the Housing Act of 1949 
     (42 U.S.C. 1490) is amended by striking ``city of'' and 
     inserting ``cities of South Tucson, Arizona, and''.

     SEC. 512. ELIGIBILITY OF MANUFACTURED HOME PARKS FOR BUILDING 
                   SITE LOANS FOR COOPERATIVES.

       The first sentence of section 524(a)(1) of the Housing Act 
     of 1949 (42 U.S.C. 1490d(a)(1)) is amended by inserting 
     before the period at the end the following: ``, and for the 
     acquisition and development of manufactured home parks owned 
     by nonprofit organizations for future ownership by low- and 
     moderate-income residents of the park''.

     SEC. 513. RURAL HOUSING ASSISTANCE TARGETING REPORT.

       Section 532(a) of the Housing Act of 1949 (42 U.S.C. 1490l) 
     is amended by adding at the end the following new flush 
     material:

     ``The Secretary shall submit a report to the Congress for 
     each fiscal year describing the geographical distribution of 
     housing for which eligible loan applications for assistance 
     under this title are submitted in such year and for which 
     amounts are obligated in such year. The report shall describe 
     the areas in which the housing to be assisted under the 
     applications is located, the number of eligible applications 
     received for housing in such areas, the number of eligible 
     applications for housing in such areas that were approved and 
     funded and the amounts of such funding, the extent of the 
     rural character of such areas, and any actions taken by the 
     Secretary to comply with the requirement under paragraph (3). 
     The report for a fiscal year shall be submitted not later 
     than 180 days after the conclusion of such fiscal year.''.

     SEC. 514. PRIORITY FOR RURAL HOUSING VOUCHER ASSISTANCE.

       Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is 
     amended by adding at the end the following new subsection:
       ``(c) Priority.--
       ``(1) Requirement.--In providing assistance under this 
     section, the Secretary shall give preference to providing 
     assistance for rental housing that--
       ``(A) is financed or assisted with a loan, guarantee, 
     insurance, or other assistance provided under this title; and
       ``(B)(i) has a significant number of units, as determined 
     by the Secretary, that have been vacant for extended periods; 
     or
       ``(ii) is occupied by a significant number of families, as 
     determined by the Secretary, who pay as rent for a unit in 
     the housing an amount exceeding 30 percent of the family's 
     monthly adjusted income.
       ``(2) Project-based assistance.--To provide assistance 
     according to the preference under paragraph (1), the 
     Secretary may enter into contracts with owners of housing 
     described in paragraph (1) to provide voucher assistance 
     payments that are attached to such housing on behalf of very 
     low-income families who reside in such housing.''.

     SEC. 515. NATIVE AMERICAN RURAL HOUSING CAPACITY 
                   DEMONSTRATION PROGRAM.

       Title V of the Housing Act of 1949 is amended by inserting 
     after section 537 (42 U.S.C. 1490p-1) the following new 
     section:

     ``SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM FOR 
                   NATIVE AMERICANS AND ALASKAN NATIVES.

       ``(a) Authority.--The Secretary shall carry out a program 
     under this section to demonstrate the effectiveness of 
     assisting Native Americans and Alaskan Natives in underserved 
     areas to apply for, obtain, and use housing assistance under 
     this title.
       ``(b) Grants.--Under the demonstration under this section, 
     the Secretary shall make grants to technical assistance 
     providers selected under subsection (f) to carry out 
     activities under subsection (c) with respect to tribes 
     selected under subsection (e) (and members of the tribes) in 
     the selected areas. Of the amounts provided to a technical 
     assistance provider under a grant under this section, 40 
     percent shall be disbursed to the technical assistance 
     provider in fiscal year 1995, 30 percent shall be so 
     disbursed in fiscal year 1996, and 30 percent shall be so 
     disbursed in fiscal year 1997.
       ``(c) Use of Assistance.--
       ``(1) Eligible activities.--Any amounts provided to a 
     technical assistance provider under a grant under this 
     section shall be used by the technical assistance provider 
     only--
       ``(A) to train individuals for employment as local project 
     coordinators under paragraph (2), which shall include 
     training regarding the availability, application for, and use 
     of housing assistance under this title with respect to tribes 
     and members of tribes;
       ``(B) to provide ongoing technical assistance and training 
     to local project coordinators;
       ``(C) to provide assistance to the tribes selected under 
     subsection (e) in the selected areas, or to Native American 
     or Alaskan Native housing organizations serving such tribes, 
     to employ local project coordinators trained pursuant to 
     subparagraph (A); and
       ``(D) to establish a revolving fund to provide loans to 
     tribes and members of tribes for customary and reasonable 
     costs incurred in preparing and submitting applications for 
     housing assistance under this title to be used in the 
     selected areas (including costs of credit reports), except 
     that not more than $1,500 may be provided for the purpose 
     under this subparagraph to any single tribe or Native 
     American or Alaskan Native housing organization.
       ``(2) Local project coordinator.--For purposes of this 
     section, a local project coordinator shall be an individual 
     who--
       ``(A) is employed by a tribe selected under subsection (e) 
     in, or Native American or Alaskan Native housing organization 
     serving, the selected area;
       ``(B) provides advice and assistance to the tribe or the 
     tribes served by the organization (and members of such 
     tribes), regarding the availability, application for, and use 
     of housing assistance under this title;
       ``(C) otherwise facilitates the use of such assistance by 
     the tribes and their members; and
       ``(D) assists the tribes and their members in obtaining 
     loans from the revolving fund established under paragraph 
     (1)(D).
       ``(d) Tribal Contributions To Demonstration Program.--Each 
     tribe selected under subsection (e) for participation in the 
     demonstration program under this section shall enter into an 
     agreement with the technical assistance provider to provide 
     in-kind or financial assistance, in addition to amounts 
     provided under this section, for activities under the 
     demonstration program, in an amount determined by the tribe 
     and the technical assistance provider. The assistance 
     provided pursuant to such agreement may include assistance in 
     the form of office space, equipment, transportation, salary 
     enhancement, and fringe benefits, and other forms of 
     assistance.
       ``(e) Selection of Tribes and Areas.--
       ``(1) Eligibility.--The Secretary shall provide for the 
     technical assistance providers receiving grants under this 
     section to select for participation in the demonstration 
     under this section not more than a total of 15 tribes--
       ``(A) that are located in counties or communities--
       ``(i) that are eligible for designation as targeted 
     underserved areas under section 509(f); or
       ``(ii) that include tribal allotted or Indian trust land; 
     and
       ``(B) that--
       ``(i) have agreed to participate in the demonstration under 
     this section by designating individuals for training as local 
     project coordinators under subsection (c); or
       ``(ii) are located in a county or community within which is 
     located a Native American or Alaskan Native housing 
     organization that has so agreed to participate in the 
     demonstration under this section.
       ``(2) Criteria for selection.--Each technical assistance 
     provider selecting tribes pursuant to paragraph (1) shall 
     make such selections according to criteria that include--
       ``(A) the extent of substandard housing on the reservation 
     of the tribe;
       ``(B) the extent of the waiting list for housing assistance 
     under Federal housing programs in the community or community 
     under paragraph (1)(A);
       ``(C) the extent of interest in and willingness to 
     participate in the demonstration program under this section 
     for a 3-year period; and
       ``(D) the extent of willingness to provide in-kind or 
     financial assistance in addition to amounts provided under 
     this section for activities under the demonstration program.
       ``(3) Treatment as targeted underserved areas.--
     Notwithstanding the designation of counties and communities 
     as targeted underserved areas under section 509(f)(1) and the 
     provisions of section 520, any selected area under this 
     section shall be considered a targeted underserved area for 
     fiscal years 1995, 1996, and 1997, for purposes of 
     eligibility for assistance with amounts reserved under 
     section 509(f)(4)(A).
       ``(f) Selection of Technical Assistance Providers.--
       ``(1) Eligibility.--The Secretary may make a grant under 
     this section only to a nonprofit organization having 
     experience in providing training and technical assistance 
     regarding the use of housing assistance under this title and 
     in administering revolving loan funds for costs relating to 
     housing assistance programs under this title.
       ``(2) Application.--The Secretary shall provide for 
     nonprofit organizations meeting the requirements under 
     paragraph (1) to submit applications for a grant under this 
     section during a period of not more than 45 days that begins 
     upon publication of the notice of funding availability under 
     subsection (i).
       ``(3) Selection.--Not more than 30 days after expiration of 
     such period, the Secretary shall select, to receive grants 
     under this section, 1 or more nonprofit organizations 
     submitting applications that are--
       ``(A) capable of carrying out the duties of technical 
     assistance providers under this section;
       ``(B) knowledgeable and experienced regarding housing needs 
     and issues of Native Americans and Alaskan Natives and 
     housing assistance programs under this title; and
       ``(C) agree to comply with the provisions of this section.
       ``(g) Reports.--
       ``(1) Local project coordinators.--Each local project 
     coordinator trained or assisted by a technical assistance 
     provider with amounts from a grant under this section shall 
     submit a report to the technical assistance provider for each 
     of fiscal years 1995 through 1997, regarding the activities 
     of the coordinator. The report shall be submitted not later 
     than 30 days after the conclusion of the fiscal year for 
     which the report is made.
       ``(2) Technical assistance providers.--Each technical 
     assistance provider receiving a grant under this section 
     shall submit a report to the Secretary for each of fiscal 
     years 1995 through 1997, summarizing the information 
     submitted under paragraph (1) for the fiscal year and 
     describing the activities of the technical assistance 
     provider under the demonstration under this section during 
     the fiscal year. The report shall be submitted not later than 
     60 days after the conclusion of the fiscal year for which the 
     report is made.
       ``(3) Secretary.--The Secretary shall submit a report to 
     the Congress for each of fiscal years 1995 through 1997 
     describing the demonstration under this section and the 
     findings of the Secretary as a result of the demonstration. 
     The report shall be submitted not later than 90 days after 
     the conclusion of the fiscal year for which the report is 
     made.
       ``(h) Definitions.--For purposes of this section:
       ``(1) Alaskan native village.--The term `Alaskan Native 
     Village' has the same meaning given the term `Native village' 
     in section 3 of the Alaska Native Claims Settlement Act.
       ``(2) Native american or alaskan native housing 
     organization.--The term `Native American or Alaskan Native 
     housing organization' means a nonprofit organization that 
     primarily serves a tribe or tribes, and includes Indian 
     housing authorities and other housing entities of a tribe.
       ``(3) Nonprofit organization.--The term `nonprofit 
     organization' means any private, nonprofit organization 
     that--
       ``(A) is organized or chartered under State, tribal, or 
     local laws;
       ``(B) has no part of its net earning inuring to the benefit 
     of any member, founder, contributor, or individual;
       ``(C) complies with standards of financial accountability 
     acceptable to the Secretary; and
       ``(D) through its articles of incorporation or through 
     resolution of the governing body of a tribe, has among its 
     purposes significant activities related to the provision of 
     decent housing that is affordable to low- and moderate-income 
     families.
       ``(4) Selected area.--The term `selected area' means, with 
     respect to any tribe selected under subsection (e), the 
     county or community meeting the requirements of subsection 
     (e)(1) in which the tribe selected is located.
       ``(5) Technical assistance provider.--The term `technical 
     assistance provider' means a nonprofit organization 
     (including a tribe and an Indian housing authority) that is 
     selected under subsection (f) to receive a grant under this 
     section.
       ``(6) Tribe.--The term `tribe' means any Indian tribe, 
     band, group, or nation, including Alaska Indians, Aleuts, and 
     Eskimos, and any Alaskan Native Village, of the United 
     States, that is considered an eligible recipient under the 
     Indian Self-Determination and Education Assistance Act or was 
     considered an eligible recipient under chapter 67 of title 
     31, United States Code, prior to the repeal of such chapter.
       ``(i) Notice of Funding Availability.--
       ``(1) Publication.--The Secretary shall cause to be 
     published in the Federal Register notice of the availability 
     of any amounts made available for grants under this section. 
     Such notice shall be published not later than the expiration 
     of the 90-day period beginning on the date that amounts are 
     appropriated to carry out this section.
       ``(2) Contents.--The notice referred to in paragraph (1) 
     shall--
       ``(A) describe the requirements for eligibility to receive 
     a grant, the purposes of the grant, and the permissible uses 
     of grant amounts;
       ``(B) contain an address to which requests for additional 
     information regarding the demonstration under this section 
     may be made; and
       ``(C) state the deadline established by the Secretary 
     pursuant to subsection (f)(2) for the submission of 
     applications for a grant.''.

     SEC. 516. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

       Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) 
     is amended by inserting after section 538 (as added by the 
     preceding provisions of this title) the following new 
     section:

     ``SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

       ``(a) In General.--The Secretary is authorized to provide 
     assistance to develop the capacity and ability of community 
     development corporations, community housing development 
     organizations, and other nonprofit organizations to undertake 
     community development and affordable housing projects and 
     programs in rural areas.
       ``(b) Form of Assistance.--Assistance under this section 
     may be used for--
       ``(1) training, education, support, and advice to enhance 
     the technical and administrative capabilities of community 
     development corporations, community housing development 
     organizations, and nonprofit organizations in rural areas;
       ``(2) loans, grants, or predevelopment assistance to 
     community development corporations, community housing 
     development organizations, and nonprofit organizations to 
     carry out community development and affordable housing 
     activities that benefit low-income families in rural areas; 
     and
       ``(3) such other activities for rural areas as may be 
     determined by the Secretary.
       ``(c) Matching Requirement.--Assistance provided under this 
     section shall be matched from private sources in an amount 
     equal to 3 times the amount made available under this 
     section.
       ``(d) Implementation.--The Secretary shall by notice 
     establish such requirements as may be necessary to carry out 
     the provisions of this section. The notice shall take effect 
     upon issuance.''.

     SEC. 517. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) 
     is amended by inserting after section 539 (as added by the 
     preceding provision of this title) the following new section:

     ``SEC. 540. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       ``(a) Authority.--The Secretary may make commitments to 
     guarantee eligible loans for the development costs of 
     eligible housing and related facilities, and may guarantee 
     such eligible loans, in accordance with this section.
       ``(b) Extent of Guarantee.--A guarantee made under this 
     section shall guarantee repayment of an amount not exceeding 
     90 percent of the amount of the unpaid principal and interest 
     of the loan for which the guarantee is made. The liability of 
     the United States under any guarantee under this section 
     shall decrease or increase pro rata with any decrease or 
     increase of the amount of the unpaid portion of the 
     obligation.
       ``(c) Eligible Borrowers.--A loan guaranteed under this 
     section may be made to a nonprofit organization, an agency or 
     body of any State government or political subdivision 
     thereof, or a private entity.
       ``(d) Eligible Housing.--A loan may be guaranteed under 
     this section only if the loan is used for the development 
     costs of housing and related facilities (as such terms are 
     defined in section 515(e)) that--
       ``(1) consists of 5 or more adequate dwellings;
       ``(2) is available for occupancy only by low or moderate 
     income families or persons, whose incomes at the time of 
     initial occupancy do not exceed 115 percent of the median 
     income of the area, as determined by the Secretary;
       ``(3) will remain available as provided in paragraph (2), 
     according to such binding commitments as the Secretary may 
     require, for the period of the original term of the loan 
     guaranteed, unless the Secretary waives the applicability of 
     such requirement for the loan only after determining, based 
     on objective information, that--
       ``(A) there is no longer a need for low- and moderate-
     income housing in the market area in which the housing is 
     located;
       ``(B) housing opportunities for low-income households and 
     minorities will not be reduced as a result of the waiver; and
       ``(C) additional Federal assistance will not be necessary 
     as a result of the waiver; and
       ``(4) is located in a rural area.
       ``(e) Eligible Lenders.--
       ``(1) Requirement.--A loan may be guaranteed under this 
     subsection only if the loan is made by a lender that the 
     Secretary determines--
       ``(A) meets the qualifications, and has been approved by 
     the Secretary of Housing and Urban Development, to make loans 
     for multifamily housing that are to be insured under the 
     National Housing Act;
       ``(B) meets the qualifications, and has been approved by 
     the Federal National Mortgage Association and the Federal 
     Home Loan Mortgage Corporation, to make loans for multifamily 
     housing that are to be sold to such corporations; or
       ``(C) meets any qualifications that the Secretary may, by 
     regulation, establish for participation of lenders in the 
     loan guarantee program under this section.
       ``(2) Eligibility list and annual audit.--The Secretary 
     shall establish a list of eligible lenders and shall annually 
     conduct an audit of each lender included in the list for 
     purposes of determining whether such lender continues to be 
     an eligible lender.
       ``(f) Loan Terms.--Each loan guaranteed pursuant to this 
     subsection shall--
       ``(1) provide for complete amortization by periodic 
     payments to be made for a term not to exceed 40 years;
       ``(2) involve a rate of interest agreed upon by the 
     borrower and the lender that does not exceed the maximum 
     allowable rate established by the Secretary for purposes of 
     this section and is fixed over the term of the loan;
       ``(3) involve a principal obligation (including initial 
     service charges, appraisal, inspection, and other fees as the 
     Secretary may approve) not to exceed--
       ``(A) in the case of a borrower that is a nonprofit 
     organization or an agency or body of any State or local 
     government, 97 percent of the development costs of the 
     housing and related facilities or the value of the housing 
     and facilities, whichever is less;
       ``(B) in the case of a borrower that is a for-profit entity 
     not referred to in subparagraph (A), 90 percent of the 
     development costs of the housing and related facilities or 
     the value of the housing and facilities, whichever is less; 
     and
       ``(C) in the case of any borrower, for such part of the 
     property as may be attributable to dwelling use, the 
     applicable maximum per unit dollar amount limitations under 
     section 207(c) of the National Housing Act;
       ``(4) be secured by a first mortgage on the housing and 
     related facilities for which the loan is made, or otherwise, 
     as the Secretary may determine necessary to ensure repayment 
     of the obligation; and
       ``(5) for at least 20 percent of the loans made under this 
     section, the Secretary shall provide the borrower with 
     assistance in the form of credits pursuant to section 
     521(a)(1)(B) to the extent necessary to reduce the rate of 
     interest under paragraph (2) to the applicable Federal rate, 
     as such term is used in section 42(i)(2)(D) of the Internal 
     Revenue Code of 1986.
       ``(g) Guarantee Fee.--At the time of issuance of a loan 
     guaranteed under this section, the Secretary may collect from 
     the lender a fee equal to not more than 1 percent of the 
     principal obligation of the loan.
       ``(h) Authority for Lenders to Issue Certificates of 
     Guarantee.--The Secretary may authorize certain eligible 
     lenders to determine whether a loan meets the requirements 
     for guarantee under this section and, subject to the 
     availability of authority to enter into guarantees under this 
     section, execute a firm commitment for a guarantee binding 
     upon the Secretary and issue a certificate of guarantee 
     evidencing a guarantee, without review and approval by the 
     Secretary of the specific loan. The Secretary may establish 
     standards for approving eligible lenders for a delegation of 
     authority under this subsection.
       ``(i) Payment Under Guarantee.--
       ``(1) Notice of default.--In the event of default by the 
     borrower on a loan guaranteed under this section, the holder 
     of the guarantee certificate for the loan shall provide 
     written notice of the default to the Secretary.
       ``(2) Foreclosure.--After receiving notice under paragraph 
     (1) and providing written notice of action under this 
     paragraph to the Secretary, the holder of the guarantee 
     certificate for the loan may initiate foreclosure proceedings 
     for the loan in a court of competent jurisdiction, in 
     accordance with regulations issued by the Secretary, to 
     obtain possession of the security property. After the court 
     issues a final order authorizing foreclosure on the property, 
     the holder of the certificate shall be entitled to payment by 
     the Secretary under the guarantee (in the amount provided 
     under subsection (b)) upon (A) conveyance to the Secretary of 
     title to the security property, (B) submission to the 
     Secretary of a claim for payment under the guarantee, and (C) 
     assignment to the Secretary of all the claims of the holder 
     of the guarantee against the borrower or others arising out 
     of the loan transaction or foreclosure proceedings, except 
     claims released with the consent of the Secretary.
       ``(3) Assignment by secretary.--After receiving notice 
     under paragraph (1), the Secretary may accept assignment of 
     the loan if the Secretary determines that the assignment is 
     in the best interests of the United States. Assignment of a 
     loan under this paragraph shall include conveyance to the 
     Secretary of title to the security property, assignment to 
     the Secretary of all rights and interests arising under the 
     loan, and assignment to the Secretary of all claims against 
     the borrower or others arising out of the loan transaction. 
     Upon assignment of a loan under this paragraph, the holder of 
     a guarantee certificate for the loan shall be entitled to 
     payment by the Secretary under the guarantee (in the amount 
     provided under subsection (b)).
       ``(4) Requirements.--Before any payment under a guarantee 
     is made under paragraph (2) or (3), the holder of the 
     guarantee certificate shall exhaust all reasonable 
     possibilities of collection on the loan guaranteed. Upon 
     payment, in whole or in part, to the holder, the note or 
     judgment evidencing the debt shall be assigned to the United 
     States and the holder shall have no further claim against the 
     borrower or the United States. The Secretary shall then take 
     such action to collect as the Secretary determines 
     appropriate.
       ``(j) Violation of Guarantee Requirements by Lenders 
     Issuing Guarantees.--
       ``(1) Indemnification.--If the Secretary determines that a 
     loan guaranteed by an eligible lender pursuant to delegation 
     of authority under subsection (h) was not originated in 
     accordance with the requirements under this section and the 
     Secretary pays a claim under the guarantee for the loan, the 
     Secretary may require the eligible lender authorized under 
     subsection (h) to issue the guarantee certificate for the 
     loan--
       ``(A) to indemnify the Secretary for the loss, if the 
     payment under the guarantee was made within a reasonable 
     period specified by the Secretary; or
       ``(B) to indemnify the Secretary for the loss regardless of 
     when payment under the guarantee was made, if the Secretary 
     determines that fraud or misrepresentation was involved in 
     connection with the origination of the loan.
       ``(2) Termination of authority to issue guarantees.--The 
     Secretary may cancel a delegation of authority under 
     subsection (h) to an eligible lender if the Secretary 
     determines that the lender has violated the requirements and 
     procedures for guaranteed loans under this section or for 
     other good cause. Any such cancellation shall be made by 
     giving notice to the eligible lender and shall take effect 
     upon receipt of the notice by the mortgagee or at a later 
     date, as the Secretary may provide. A decision by the 
     Secretary to cancel a delegation shall be final and 
     conclusive and shall not be subject to judicial review.
       ``(k) Refinancing.--Any loan guaranteed under this section 
     may be refinanced and extended in accordance with terms and 
     conditions that the Secretary shall prescribe, but in no 
     event for an additional amount or term that exceeds the 
     limitations under subsection (f).
       ``(l) Nonassumption.--The borrower under a loan that is 
     guaranteed under this section and under which any portion of 
     the principal obligation or interest remains outstanding may 
     not be relieved of liability with respect to the loan, 
     notwithstanding the transfer of property for which the loan 
     was made.
       ``(m) Geographical Targeting.--
       ``(1) Study.--The Secretary shall provide for an 
     independent entity to conduct a study to determine the extent 
     to which borrowers in the United States will utilize loan 
     guarantees under this section, the rural areas in the United 
     States in which borrowers can best utilize and most need 
     loans guaranteed under this section, and the rural areas in 
     the United States in which housing of the type eligible for a 
     loan guarantee under this section is most needed by low- and 
     moderate-income families. The Secretary shall require the 
     independent entity conducting the study to submit a report to 
     the Secretary and to the Congress describing the results of 
     the study not later than the expiration of the 90-day period 
     beginning on the date of the enactment of the Housing and 
     Community Development Act of 1994.
       ``(2) Targeting.--In providing loan guarantees under this 
     section, the Secretary shall establish standards to target 
     and give priority to rural areas in which borrowers can best 
     utilize and most need loans guaranteed under this section, as 
     determined by the Secretary based on the results of the study 
     under paragraph (1) and any other information the Secretary 
     considers appropriate.
       ``(n) Inapplicability of Credit-Elsewhere Test.--Section 
     501(c) shall not apply to guarantees, or loans guaranteed, 
     under this section.
       ``(o) Tenant Protections.--The Secretary shall establish 
     standards for the treatment of tenants of housing developed 
     using amounts from a loan guaranteed under this section, 
     which shall incorporate, to the extent applicable, existing 
     standards applicable to tenants of housing developed with 
     loans made under section 515. Such standards shall include 
     standards for fair housing and equal opportunity, lease and 
     grievance procedures, and tenant appeals of adverse actions.
       ``(p) Housing Standards.--The standards established under 
     section 515(m) for housing and related facilities assisted 
     under section 515 shall apply to housing and related 
     facilities the development costs of which are financed in 
     whole or in part with a loan guaranteed under this section.
       ``(q) Limitation on Commitments to Guarantee Loans.--
       ``(1) Requirement of appropriations.--The authority of the 
     Secretary to enter into commitments to guarantee loans under 
     this section, and to guarantee loans, shall be effective for 
     any fiscal year only to the extent or in such amounts as are 
     or have been provided in appropriations Acts for such fiscal 
     year.
       ``(2) Limitation on projects and outstanding aggregate 
     principal amount.--Subject to the limitation in paragraph 
     (1), the Secretary may enter into commitments to guarantee 
     loans under this section for not more than 25 housing 
     projects in each of fiscal years 1995 and 1996, having an 
     aggregate outstanding principal amount not exceeding 
     $50,000,000 in each of such fiscal years.
       ``(r) Report.--
       ``(1) In general.--The Secretary shall submit a report to 
     the Congress, not later than the expiration of the 2-year 
     period beginning on the date of the enactment of the Housing 
     and Community Development Act of 1994, describing the program 
     under this section for guaranteeing loans.
       ``(2) Contents.--The report shall--
       ``(A) describe the types of borrowers providing housing 
     with loans guaranteed under this section, the areas served by 
     the housing provided and the geographical distribution of the 
     housing, the levels of income of the residents of the 
     housing, the number of dwelling units provided, the extent to 
     which borrowers under such loans have obtained other 
     financial assistance for development costs of housing 
     provided with the loans, and the extent to which borrowers 
     under such loans have used low-income housing tax credits 
     provided under section 42 of the Internal Revenue Code of 
     1986 in connection with the housing provided with the loans;
       ``(B) analyze the financial viability of the housing 
     provided with loans guaranteed under this section and the 
     need for project-based rental assistance for such housing;
       ``(C) include any recommendations of the Secretary for 
     expanding or improving the program under this section for 
     guaranteeing loans; and
       ``(D) include any other information regarding the program 
     for guaranteeing loans under this section that the Secretary 
     considers appropriate.
       ``(s) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(1) The term `development cost' has the meaning given the 
     term in section 515(e).
       ``(2) The term `eligible lender' means a lender determined 
     by the Secretary to meet the requirements of subparagraph 
     (A), (B), (C), or (D) of subsection (e)(1).
       ``(3) The terms `housing' and `related facilities' have the 
     meanings given such terms in section 515(e).
       ``(t) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 1995 and 1996 
     such sums as may be necessary for costs (as such term is 
     defined in section 502 of the Congressional Budget Act of 
     1974) of loan guarantees made under this section.
       ``(u) Termination Date.--A loan may not be guaranteed under 
     this section after September 30, 1996.''.

     SEC. 518. RURAL HOUSING LOAN DELEGATED PROCESSING 
                   DEMONSTRATION.

       (a) Authority.--Not later than the expiration of the 180-
     day period beginning on the date of enactment of this Act, 
     the Secretary of Agriculture shall implement a system for 
     making, processing, and servicing loans under section 502 of 
     the Housing Act of 1949 that delegates such functions to 
     nonprofit organizations approved by the Secretary of 
     Agriculture. Under the system, the Secretary shall retain the 
     authority to approve loan amounts and interest credit 
     agreements and to execute binding loan commitments and credit 
     agreements.
       (b) Use in Targeted Underserved Areas.--The Secretary of 
     Agriculture shall carry out the delegated processing system 
     under subsection (a) only with respect to loans for housing 
     located in, and amounts reserved for use in, areas for which 
     a designation under section 509(f) is in effect.
       (c) Report.--The Secretary of Agriculture shall submit an 
     interim report to the Congress not later than 12 months after 
     the date of the initial implementation of the delegated 
     processing system under this section describing the 
     activities taken under the system and evaluating the 
     effectiveness of the system.
       (d) Termination of Authority.--The Secretary of Agriculture 
     may not carry out the delegated processing system under this 
     section after September 30, 1996.
                    TITLE VI--COMMUNITY DEVELOPMENT
         Subtitle A--Community Development Block Grant Program

     SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND GUARANTEE 
                   AUTHORITY.

       (a) Community Development Block Grants.--The second 
     sentence of section 103 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5303) is amended to read 
     as follows: ``For purposes of assistance under section 106, 
     there are authorized to be appropriated $4,400,000,000 for 
     fiscal year 1995 and $4,500,000,000 for fiscal year 1996.''.
       (b) Limitation on Loan Guarantees.--The fifth sentence of 
     section 108(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5308(a)) is amended to read as follows: 
     ``Notwithstanding any other provision of law and subject only 
     to the absence of qualified applicants or proposed activities 
     and to the authority provided in this section, to the extent 
     approved or provided in appropriation Acts, the Secretary 
     shall enter into commitments to guarantee notes and 
     obligations under this section with an aggregate principal 
     amount of $2,054,000,000 for fiscal year 1995 and 
     $2,054,000,000 for fiscal year 1996.''.
       (c) Special Purpose Grants.--Section 107 of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5307) is 
     amended--
       (1) by striking ``Sec. 107'' and all that follows through 
     the end of paragraph (1) of subsection (a) and inserting the 
     following:
       ``Sec. 107. (a) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     for each of fiscal years 1995 and 1996, $60,000,000, for 
     grants under subsection (b). Of such amounts--
       ``(A) $7,000,000 shall be available in each such year for 
     grants under subsection (b)(1);
       ``(B) such sums as may be necessary shall be available in 
     each such year for grants under subsection (b)(2);
       ``(C) $7,000,000 shall be available in each such year for 
     grants under subsection (b)(3);
       ``(D) $28,000,000 shall be available in each such year for 
     grants under subsection (b)(4);
       ``(E) $6,000,000 shall be available in each such year for 
     grants under subsection (b)(5);
       ``(F) $2,000,000 shall be available in each such year for 
     grants under subsection (b)(6);
       ``(G) $8,000,000 shall be available in each such year for 
     grants under subsection (b)(7);
       ``(H) such sums as may be necessary shall be available in 
     each such year for grants under subsection (b)(8);
       ``(I) $3,000,000 shall be available in each such year for 
     grants under subsection (c); and
       ``(J) such sums as may be necessary shall be available in 
     fiscal year 1995 for a grant to the City of Bridgeport, 
     Connecticut, subject to binding commitments made by the City 
     of Bridgeport and the State of Connecticut that the amount 
     made available pursuant to this subparagraph will be 
     supplemented with an additional amount equal to such amount 
     under this subparagraph, which shall be provided by the city 
     and the State in equal amounts.''; and
       (2) in subsection (b)--
       (A) in paragraph (6), by striking ``and'' at the end;
       (B) in paragraph (7), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following new paragraph:
       ``(8) to 10 metropolitan cities and urban counties that 
     receive grants under section 106, have high rates of fire 
     incidents, a substantial number of low-income residents, and 
     a high rate of death and serious injury caused by fire among 
     youth, elderly, and minorities, for obtaining a nitrogen 
     enhanced, biodegradable, noncorrosive fire suppression liquid 
     and for training firefighters to use such liquid; and in any 
     year in which grants are made under this paragraph, the 
     Secretary shall include in the report required under section 
     113 a description of the effectiveness of grants made under 
     this paragraph in preventing loss of life and property; 
     and''.

     SEC. 602. MANAGEMENT INFORMATION SYSTEMS.

       Section 103 of the Housing and Community Development Act of 
     1974 (42 U.S.C 5303) is amended--
       (1) by inserting ``(a) In General.--'' after ``103.''; and
       (2) by adding at the end the following new subsection:
       ``(b) Reservation for Management Information Systems.--Of 
     the amount approved in an appropriation Act for each of 
     fiscal years 1995 and 1996 under this section, the Secretary 
     may reserve not more than 0.5 percent for improving 
     management information systems used by the Secretary and 
     recipients under this title.''.

     SEC. 603. ELIGIBLE ACTIVITIES.

       (a) Reconstruction Activities and Removal of Toxic 
     Materials.--Section 105(a) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
       (1) in paragraph (4), by striking ``, demolition, 
     removal,'' and inserting ``(including the removal of toxic 
     materials and other contaminants from properties), 
     demolition, removal, reconstruction,'';
       (2) in paragraph (8), by striking ``fiscal year 1994'' and 
     inserting ``fiscal years 1994, 1995, and 1996'';
       (3) in paragraph (13), by striking ``and'' at the end;
       (4) by striking paragraph (19);
       (5) in paragraph (24), by striking ``and'' at the end;
       (6) in paragraph (25), by striking the period at the end 
     and inserting ``; and'';
       (7) by redesignating paragraphs (20) through (25) as 
     paragraphs (19) through (24), respectively; and
       (8) by redesignating paragraph (21) (as added by section 
     1012(f)(3) of the Housing and Community Development Act of 
     1992 (Public Law 102-550; 106 Stat. 3905) as paragraph (25).
       (b) Homeownership Activities.--Section 907(b)(2) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     5305 note) is hereby repealed.

     SEC. 604. REALLOCATIONS.

       Section 106(c) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5304(c)) is amended by striking paragraph 
     (4).

     SEC. 605. LIMITATION ON EXTENT OF USE OF LOAN GUARANTEES FOR 
                   HOUSING PURPOSES.

       Section 108 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5308) is amended by inserting after 
     subsection (h) the following new subsection:
       ``(i) Limitation on Use.--Of any amounts obtained from 
     notes or other obligations issued by an eligible public 
     entity or public agency designated by an eligible public 
     entity and guaranteed under this section pursuant to an 
     application for a guarantee submitted after the date of the 
     enactment of the Housing and Community Development Act of 
     1992, the aggregate amount used for the purposes described in 
     clauses (2) and (4) of subsection (a), and for other housing 
     activities under the purposes described in clauses (1) and 
     (3) of subsection (a), may not exceed 10 percent of such 
     amounts obtained by the eligible public entity or agency.''.

     SEC. 606. ECONOMIC DEVELOPMENT GRANTS.

       (a) Eligible Activities.--Section 108(q)(2) of the Housing 
     and Community Development Act of 1974 (42 U.S.C. 5308(q)(2)) 
     is amended by inserting before the period at the end the 
     following: ``and for the construction, rehabilitation, or 
     financing of retail and service facilities, mixed-use 
     projects, projects that link economic development and 
     housing, community centers, farmers' markets, and community-
     based business expansions''.
       (b) Eligible Public Entities.--Section 108(q)(1) of the 
     Housing and Community Development Act of 1974 is amended by 
     inserting after ``eligible public entities'' the following: 
     ``, and to eligible public entities in conjunction with 
     community- or neighborhood-based organizations,''.
       (c) Authorization of Appropriations.--Section 108(q) of the 
     Housing and Community Development Act of 1974 is amended by 
     adding at the end the following new paragraph:
       ``(5) Authorization of appropriations.--There are 
     authorized to be appropriated for grants under this 
     subsection $100,000,000 for fiscal year 1995 and $100,000,000 
     for fiscal year 1996.''.

     SEC. 607. 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 striking ``October 
     1, 1993'' and inserting in lieu thereof ``April 11, 1994''.

     SEC. 608. EXTENSION OF CERTAIN CDBG ASSISTANCE.

       (a) Extension.--Section 916(f) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 5306 note) is 
     amended by striking ``1991'' and all that follows through 
     ``1994'' and inserting ``beginning before the commencement of 
     fiscal year 1998''.
       (b) Eligibility.--Section 916(e)(4) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 5306 
     note) is amended by inserting ``other than Riverside County, 
     California,'' after ``area''.
            Subtitle B--Other Community Development Programs

     SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

       The first sentence of section 608(a)(1) of the Neighborhood 
     Reinvestment Corporation Act (42 U.S.C. 8107(a)) is amended 
     to read as follows: ``There are authorized to be appropriated 
     to the corporation to carry out this title $35,000,000 for 
     fiscal year 1995 and $35,000,000 for fiscal year 1996.''.

     SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM.

       Section 123(g) of the Housing and Urban-Rural Recovery Act 
     of 1983 (42 U.S.C. 5318 note) is amended to read as follows:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for fiscal year 1995 and $10,000,000 for fiscal 
     year 1996.''.

     SEC. 633. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND 
                   AFFORDABLE HOUSING.

       (a) Authorization of Appropriations.--Section 4 of the HUD 
     Demonstration Act of 1993 (42 U.S.C. 9816 note) is amended by 
     striking subsection (e) and inserting the following new 
     subsection:
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $60,000,000 for fiscal year 1995 and $60,000,000 for fiscal 
     year 1996.''.
       (b) Delivery of Assistance.--Section 4 of the HUD 
     Demonstration Act of 1993 (42 U.S.C. 9816 note) is amended--
       (1) in subsection (a)--
       (A) by inserting ``and directly to community-based 
     organizations and capacity-building organizations'' after 
     ``Initiative'';
       (B) by inserting ``neighborhood'' after ``undertake''; and
       (C) by striking ``and affordable housing'' and inserting 
     ``, affordable housing, revitalization, economic development, 
     youth and family support, and community service'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``and community housing 
     development organizations'' and inserting ``, community 
     housing development organizations, and community-based 
     organizations'' before the semicolon at the end;
       (B) in paragraph (2)--
       (i) by striking ``and community housing development 
     organizations'' and inserting ``, community housing 
     development organizations, and community-based 
     organizations'';
       (ii) by inserting ``neighborhood'' after ``carry out''; and
       (iii) by striking ``low-income'' and inserting ``low- and 
     moderate-income''; and
       (C) in paragraph (3), by inserting ``or the community-based 
     organization'' after ``Initiative'';
       (3) in subsection (c), by inserting ``to the National 
     Community Development Initiative'' after ``provided'';
       (4) by redesignating subsection (d) as subsection (e); and
       (5) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Selection Criteria.--The Secretary shall select 
     community-based organizations and capacity-building 
     organizations to receive assistance under this section based 
     upon selection criteria established by the Secretary, which 
     shall include the extent to which the activities proposed to 
     be conducted by the organization with assistance under this 
     section will--
       ``(1) develop new community-based organizations in 
     unorganized or underserved areas;
       ``(2) assist eligible private nonprofit community-based 
     organizations located in low- or moderate-income 
     neighborhoods or areas having a concentration of low- and 
     moderate-income persons;
       ``(3) be targeted to areas in economic distress;
       ``(4) be conducted by an organization that provides for 
     neighborhood resident participation in the activities of the 
     organization (including participation of low- and moderate-
     income residents) and the extent to which the households and 
     businesses in the area served are members of the 
     organization;
       ``(5) benefit low- and moderate-income persons residing in 
     the area served by the applicant;
       ``(6) encourage linking and coordinating housing, economic, 
     and human development;
       ``(7) be coordinated with local law enforcement agencies, 
     local public housing agencies, and local public housing 
     resident management corporations and resident councils, with 
     respect to anti crime initiatives; and
       ``(8) leverage contributions to support a wide variety of 
     community development initiatives from the private sector, 
     foundations, colleges and universities, civic groups, social, 
     cultural, religious, and other institutions, and the national 
     service program, in a manner that achieves the greatest long-
     term private sector support.''.

     SEC. 634. COLONIAS ASSISTANCE PROGRAM.

       (a) Grant Authority.--The Secretary may make grants in 
     accordance with the provisions of this section to units of 
     general local government, States, non-profit organizations, 
     or entities or instrumentalities established under the 
     authority of any of such entities, for use in addressing the 
     community development and housing needs of colonias.
       (b) Eligible Activities.--Assistance under this section may 
     be used only to carry out the following activities:
       (1) Any activity eligible under section 105 of the Housing 
     and Community Development Act of 1974 or section 212(a) of 
     the HOME Investment Partnerships Act.
       (2) Refinancing the existing debt of homeowners to convert 
     existing land transactions and interests into mortgages.
       (3) Constructing new housing, including self-help, energy-
     efficient, and innovative housing design initiatives.
       (4) Developing new subdivisions for affordable housing.
       (5) Re-platting and redeveloping existing subdivisions.
       (6) Planning for and constructing infrastructure necessary 
     for the development of housing, economic development, and 
     community facilities and amenities.
       (7) Such other activities as the Secretary deems 
     appropriate to further the purposes of this section.
       (c) Model Programs.--
       (1) In general.--Of amounts allocated under subsection 
     (j)(2), the Secretary shall make grants under this subsection 
     to the entities referred to in subsection (a) for the purpose 
     of establishing model programs of assistance for addressing 
     the community development, housing, and other needs of the 
     residents of the colonias.
       (d) Selection of Grantees.--
       (1) Geographic distribution.--The Secretary shall 
     designate--
       (A) at least one project in each State to receive a grant 
     under this subsection; and
       (B) at least one project within a metropolitan area in any 
     State to receive a grant under this subsection.
       (2) Selection process.--The Secretary shall select grantees 
     under this subsection on a non-competitive basis, through 
     negotiation with the grantee.
       (3) Selection criteria.--In selecting projects for grants 
     under this subsection, the Secretary shall consider--
       (A) the extent of need in the colonia;
       (B) the likely effectiveness of the proposed approach in 
     addressing identified needs;
       (C) the extent to which funding for the project is 
     committed from sources other than under this section;
       (D) the need to consider a variety of solutions to a 
     variety of needs situations; and
       (E) such other factors as the Secretary deems appropriate 
     to carry out the objectives of this section.
       (e) Competitive Grants.--
       (1) Purpose.--Grants under this subsection shall be made, 
     in accordance with paragraph (2), to the entities referred to 
     in subsection (a) for the purpose of assisting the community 
     development and housing needs of the residents of one or more 
     colonias in an area or region.
       (2) Reservation of funds.--Of amounts allocated under 
     subsection (j)(2), the Secretary shall reserve a target 
     amount for grants under this subsection for use in colonias 
     in each State. The Secretary shall determine the amount be 
     reserved based on such objective factors of need as the 
     Secretary deems appropriate, which may include rates of 
     poverty in, and the population of, colonias. The Secretary 
     shall reallocate any amounts set-aside under this paragraph 
     for which the Secretary determines there will not be 
     sufficient approvable applications in a fiscal year.
       (3) Use of funds.--Any amount not reserved or reallocated 
     under paragraph (2) may be used in colonias in any State.
       (4) Applications.--Applications for grants under this 
     subsection shall be submitted at such time and in accordance 
     with such procedures, as the Secretary shall prescribe. 
     Applications shall contain the following information, which 
     the Secretary shall consider in selecting projects for grants 
     under this subsection:
       (A) The extent of need in the colonia.
       (B) An estimate of the likely effectiveness of the proposed 
     approach in addressing identified needs.
       (C) A description of the extent to which funding for the 
     project is committed from sources other than under this 
     section.
       (D) Any other information that the Secretary deems 
     appropriate to carry out the objectives of this section.
       (5) Selection of grantees.--The Secretary shall select 
     grantees for grants under this subsection on the basis of a 
     competition, following publication of a notice of funding 
     availability in the Federal Register.
       (f) Records, Reports, and Audits.--
       (1) Keeping of records.--Each grantee under this section 
     shall keep such records as may be reasonably necessary to 
     disclose the amounts and the disposition of grant amounts 
     received under this section and to ensure compliance with the 
     requirements of this section.
       (2) Grantee reports.--Each grantee under this section shall 
     submit to the Secretary a report, or series of reports, in a 
     form and at a time specified by the Secretary. Each report 
     shall--
       (A) describe the use of funds made available to the grantee 
     under this section; and
       (B) describe and analyze the effect of assisted activities 
     in addressing the community development and housing needs of 
     the residents of colonias.
       (g) Access to Documents by Secretary.--The Secretary shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of a grantee that are 
     pertinent to assistance received in connection with, and the 
     requirements of, this section.
       (h) Access to Documents by Comptroller General.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of a grantee that are 
     pertinent to assistance received under, and the requirements 
     of, this section.
       (i) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) The terms ``colonia'' and ``United States-Mexico Border 
     Region'' have the meanings given the terms in section 916(e) 
     of the Cranston-Gonzalez National Affordable Housing Act.
       (2) The term ``metropolitan area'' has the meaning given 
     the term in section 102(a) of the Housing and Community 
     Development Act of 1974.
       (3) The term ``nonprofit organization'' means--
       (A) an organization--
       (i) that is described in section 501(c) of the Internal 
     Revenue Code of 1986; and
       (ii) is exempt from taxation under section 501(a) of such 
     Code; or
       (B) an organization--
       (i) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       (ii) that in the case of a private nonprofit organization, 
     has a voluntary board;
       (iii) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       (iv) that practices nondiscrimination in the provision of 
     assistance.
       (4) The term ``Secretary'' means the Secretary of Housing 
     and Urban Development.
       (5) The term ``State'' means the States of California, 
     Arizona, New Mexico, and Texas.
       (6) The term ``unit of general local government'' means--
       (A) a city, town, township, county, parish, village, or 
     other general purpose political subdivision of a State; and
       (B) any agency or instrumentality thereof that is 
     established pursuant to legislation and designated by the 
     chief executive to act on behalf of the jurisdiction with 
     regard to provisions of this section.

     The term includes a consortium of geographically contiguous 
     units of general local government, if the Secretary 
     determines that the consortium--
       (i) has sufficient authority and administrative capability 
     to carry out the purposes of this section on behalf of its 
     member jurisdictions; and
       (ii) meets such other requirements as the Secretary may 
     prescribe.
       (j) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated for grants under this section $100,000,000 
     for each of fiscal years 1995 and 1996. Any amount 
     appropriated to carry out this section shall remain available 
     until expended.
       (2) Allocation of funds.--Of the amounts appropriated under 
     paragraph (1) for any fiscal year--
       (A) 80 percent shall be available for grants to establish 
     model programs under subsection (c); and
       (B) 20 percent shall be available for competitive grants 
     under subsection (e).

     SEC. 635. GRANTS FOR EMPOWERMENT ZONES AND ENTERPRISE 
                   COMMUNITIES.

       (a) Grant Authority.--The Secretary of Housing and Urban 
     Development may make grants to units of general local 
     government in which empowerment zones and enterprise 
     communities have been designated pursuant to section 1391 of 
     the Internal Revenue Code of 1986.
       (b) Use.--Grants under this section may be used only to 
     assist units of general local government in implementing the 
     strategic plan for community revitalization required for each 
     designated empowerment zone and enterprise community by 
     expanding business opportunities and job creation through 
     economic development activities and by stimulating the use of 
     project-based rental assistance certificates and other 
     activities to construct or rehabilitate rental housing, as 
     follows:
       (1) Economic development activities.--Grants amounts under 
     this section used for economic development activities may be 
     used only for activities eligible to be carried out with 
     amounts provided under title I of the Housing and Community 
     Development Act of 1974.
       (2) Assisted housing.--Grant amounts under this section 
     used for housing activities may be used for--
       (A) project-based assistance activities eligible under 
     section 8 of the United States Housing Act of 1937 or similar 
     State and local programs;
       (B) activities eligible for assistance under title II of 
     the Cranston-Gonzalez National Affordable Housing Act or a 
     similar local affordable housing program; and
       (C) other housing activities that meet the requirements of 
     this subsection, as the Secretary may approve.
       (c) Technical Assistance.--From amounts reserved under 
     subsection (i)(2), the Secretary shall carry out, directly or 
     through contracts, training and information activities in 
     connection with the program under this section.
       (d) Applications.--A locality in which an empowerment zone 
     or enterprise community has been designated, which 
     designation remains in effect, may submit an application to 
     the Secretary for a grant under this section. The application 
     shall contain such information and certifications as the 
     Secretary may require, including a certification that the 
     grant will be used in accordance with the approved strategic 
     plan. Where a zone or community is within the jurisdiction of 
     more than one unit of general local government, the 
     application shall be submitted jointly by the units of 
     general local government and shall specify whether and, if 
     so, how the grant is to be divided among the units.
       (e) Funding.--To the extent amounts are available to carry 
     out this section, for applications approved by the Secretary 
     the amount of a grant under this section for a fiscal year 
     shall be --
       (1) $50,000,000 for each urban empowerment zone;
       (2) $20,000,000 for each rural empowerment zone; and
       (3) $1,400,000 for each enterprise community.
       (f) Terms and Conditions.--Grants made under this section 
     shall be subject to such terms and conditions as the 
     Secretary may establish.
       (g) Use in Conjunction With Loan Guarantees.--Grants made 
     under this section may be used in conjunction with loans 
     guaranteed under section 108 of the Housing and Community 
     Development Act of 1974 and the Home Investment Partnerships 
     Act.
       (h) Records, Reports, and Audits.--
       (1) Keeping of records.--Each grantee under this section 
     shall keep such records as may be reasonably necessary to 
     disclose the amounts and the disposition of grant amounts 
     received under this subtitle and to ensure compliance with 
     the requirements of this section.
       (2) Grantee reports.--Each grantee under this section shall 
     submit to the Secretary a report, or series of reports, in a 
     form and at a time specified by the Secretary. Each report 
     shall--
       (A) describe the use of amounts made available under this 
     section; and
       (B) describe and analyze the effect of assisted activities 
     in addressing the objectives of this section.
       (3) Access to documents by secretary.--The Secretary shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of the grantee that are 
     pertinent to assistance received in connection with, and the 
     requirements of, this section.
       (4) Access to documents by comptroller general.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of the grantee that are 
     pertinent to assistance received under, and the requirements 
     of, this section.
       (i) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated for purposes of this section $250,000,000 
     for fiscal year 1995 and $250,000,000 for fiscal year 1996. 
     Any amount appropriated to carry out this section shall 
     remain available until expended.
       (2) Reservation of amounts for training and information 
     activities.--Of the amounts appropriated pursuant to 
     paragraph (1) for any fiscal year, the Secretary shall 
     reserve not more than 0.5 percent for use only to carry out 
     the training and information activities referred to in 
     subsection (c).

     SEC. 636. USE OF GRANT AMOUNTS.

       (a) Buffalo, New York.--Notwithstanding any other provision 
     of law, the City of Buffalo, New York, may retain amounts 
     provided under an urban development action grant under 
     section 119 of the Housing and Community Development Act of 
     1974 for Project No. B-87-AA-36-0540 and use such funds for 
     the Towne Gardens Plaza project, and may retain amounts 
     provided under such a grant for Project No. B-87-AA-36-0521 
     and use such funds for the American Axle project, if such 
     projects are commenced not later than 6 months after the date 
     of the enactment of this Act.
       (b) Pittsburgh, Pennsylvania.--Notwithstanding any other 
     provision of law, the city of Pittsburgh, Pennsylvania, may 
     retain any amounts provided under an urban development action 
     grant for Project No. B-86-AA-42-0275 and use such funds for 
     the Central Pittsburgh Plaza project, if such project is 
     commenced not later than 6 months after the date of the 
     enactment of this Act.
       (c) Richmond, Virginia.--The Secretary of Housing and Urban 
     Development shall cancel the indebtedness of the city of 
     Richmond, Virginia, relating to the categorical program 
     settlement grant provided to the city to settle four urban 
     renewal programs (Project No. B-78-UR-51-0019). The city of 
     Richmond, Virginia, is hereby relieved of all liability to 
     the Federal Government for such grant and any fees and 
     charges payable in connection with such grant.
       (d) Lockport Township, Illinois.--The Secretary of Housing 
     and Urban Development shall cancel the indebtedness of 
     Lockport Township, Illinois, relating to the public 
     facilities loan for Project No. ILL-11-PFL0112. Lockport 
     Township, Illinois, is hereby relieved of all liability to 
     the Federal Government for the outstanding principal balance 
     on such loan, the amount of accrued interest on such loan, 
     and any other fees and charges payable in connection with 
     such loan.
       (e) Budget Compliance.--Subsections (c) and (d) of this 
     section shall be effective only to the extent, or in such 
     amounts, as are provided in appropriation Acts.
            TITLE VII--REGULATORY AND MISCELLANEOUS PROGRAMS

     SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

       Section 561(g) of the Housing and Community Development Act 
     of 1987 (42 U.S.C. 3616 note) is amended to read as follows:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out the provisions of 
     this section $26,000,000 for fiscal year 1995 and $27,000,000 
     for fiscal year 1996, of which--
       ``(1) not less than $9,000,000 for fiscal year 1995 and 
     $9,000,000 for fiscal year 1996 shall be for private 
     enforcement initiatives authorized under subsection (b), 
     divided equally between activities specified under subsection 
     (b)(1) and those specified under subsection (b)(2);
       ``(2) not less than $3,000,000 for fiscal year 1995 and 
     $3,000,000 for fiscal year 1996 shall be for qualified fair 
     housing enforcement organizations authorized under subsection 
     (c)(1);
       ``(3) not less than $7,000,000 for fiscal year 1995 and 
     $7,000,000 for fiscal year 1996 shall be for the creation of 
     new fair housing enforcement organizations authorized under 
     subsection (c)(2); and
       ``(4) not less than $7,000,000 for fiscal year 1995 and 
     $7,000,000 for fiscal year 1996 shall be for education and 
     outreach programs authorized under subsection (d), to be 
     divided equally between activities specified under subsection 
     (d)(1) and those specified under subsections (d)(2) and 
     (d)(3).

     Any amount appropriated under this section shall remain 
     available until expended.''.

     SEC. 702. HUD PROGRAM MONITORING AND EVALUATION.

       The first sentence of section 7(r)(6) of the Department of 
     Housing and Urban Development Act (42 U.S.C. 3535(r)(6)) is 
     amended to read as follows: ``There are authorized to be 
     appropriated to carry out this subsection such sums as may be 
     necessary for fiscal years 1995 and 1996.''.

     SEC. 703. HUD SALARIES AND EXPENSES.

       Section 7(s) of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535(s)) is amended to read as 
     follows:
       ``(s) Authorization of Appropriations for Salaries and 
     Expenses.--Notwithstanding any other provision of law, there 
     are authorized to be appropriated such sums as may be 
     necessary for each of fiscal years 1995 and 1996 for salaries 
     and expenses to carry out the purposes of this section. There 
     is also authorized to be appropriated for fiscal year 1996, 
     $40,000,000, for the training, travel to training, continuing 
     education, professional development, and improvement of 
     skills of employees of the Department.''.

     SEC. 704. USE OF TECHNICAL ASSISTANCE AMOUNTS BY OR FOR HUD 
                   STAFF.

       Section 7 of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535) is amended by adding at the 
     end the following new subsection:
       ``(t) Use of Technical Assistance Amounts.--The Secretary 
     may transfer to any of the accounts of the Department for 
     salaries and expenses from any other account from which 
     amounts may be drawn for technical assistance such amounts as 
     the Secretary determines are reasonable to reimburse such 
     salaries and expenses account, but only if such reimbursement 
     is made for expenditures for the costs of personal services, 
     travel, and transportation, and other object classifications 
     that are incurred for the technical assistance, training, and 
     related activities provided by or to officials and employees 
     of the Department for a program that is funded from such 
     other account and in which the costs of technical assistance 
     are otherwise eligible for expenditure. Up to 10 percent of 
     the amount transferred may be used for technical assistance, 
     training, travel, and related expenses provided to officials 
     and employees of the Department. The authority under this 
     subsection to transfer amounts shall be in addition to any 
     other authority of the Secretary to transfer funds among 
     accounts which exists on the date of the enactment of the 
     Housing and Community Development Act of 1992 or is provided 
     after such date.''.

     SEC. 705. ANNUAL REPORT REGARDING REPEAL OF UNFUNDED 
                   PROGRAMS.

       Section 8 of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3536) is amended--
       (1) by inserting ``(a) In General.--'' after ``Sec. 8.''; 
     and
       (2) by adding at end the following new subsection:
       ``(b) Unfunded Programs.--In each annual report under this 
     section, the Secretary shall--
       ``(1) identify each program under the jurisdiction of the 
     Department for which amounts have been authorized to be 
     appropriated for each of the 3 most recently completed fiscal 
     years but for which, for all 3 of such years, amounts have 
     not been appropriated; and
       ``(2) include proposed legislation repealing the provisions 
     of Federal law authorizing the programs identified pursuant 
     to paragraph (1) and providing requirements for the 
     treatment, after such repeal, of any assistance provided 
     under such provisions before the repeal.''.

     SEC. 706. REQUIREMENTS FOR PARTICIPATION OF WOMEN IN 
                   CONSTRUCTION ASSISTED UNDER HUD PROGRAMS.

       The Department of Housing and Urban Development Act (42 
     U.S.C. 3531 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 15. REQUIREMENTS FOR PARTICIPATION OF WOMEN IN 
                   CONSTRUCTION ASSISTED UNDER HUD PROGRAMS.

       ``(a) Bids.--Except as provided in subsection (c), each 
     contractor submitting a bid or contract proposal for a 
     covered construction contract (and each applicant for 
     construction assistance that will carry out construction) 
     shall include in the bid or proposal (or application for 
     construction assistance) documentation sufficient to ensure 
     that the contractor will comply with the requirements of this 
     section or certifications that the contractor will make a 
     good faith effort to comply with such requirements. The 
     Secretary shall, by regulation, establish standards for such 
     documentation and certifications and shall provide for 
     contractors (and applicants) making certifications to 
     periodically provide to the Secretary evidence of such good 
     faith efforts.
       ``(b) Participation Requirements.--Any contractor who 
     enters into a covered construction contract (and any 
     recipient of construction assistance carrying out 
     construction), and any subcontractor thereof, shall employ 
     and maintain the employment of construction trades workers in 
     construction covered by the covered construction contract (or 
     assisted with the construction assistance)--
       ``(1) for any contractor or subcontractor (or recipient of 
     construction assistance) whose total number of employees is 
     not less than 6 and not more than 19, not less than 1 woman; 
     and
       ``(2) for any contractor or subcontractor (or recipient of 
     construction assistance) whose total number of employees is 
     20 or more, a number of women that is not less than 10 
     percent of the positions in each of the construction trades 
     performed by the contractor or subcontractor (or recipient of 
     construction assistance).
       ``(c) Exemption for Small Contractors.--Any contractor (or 
     recipient) whose total number of employees is 5 or less shall 
     not be subject to the requirements of this section.
       ``(d) Definitions.--For purposes of this section:
       ``(1) The term `construction assistance' means any 
     assistance provided under any program administered by the 
     Secretary that is used for any construction, but does not 
     include mortgage insurance under the National Housing Act.
       ``(2) The term `construction trades workers' means workers 
     in any construction trade, including--
       ``(A) brickmasons, stonemasons, and tile setters;
       ``(B) carpenters;
       ``(C) electricians and power transmission installers;
       ``(D) painters, paperhangers, and plasterers;
       ``(E) plumbers, pipefitters, and steamfitters;
       ``(F) carpet installers;
       ``(G) drywall installers and drywall finishers;
       ``(H) concrete and terrazzo finishers;
       ``(I) glaziers;
       ``(J) insulation workers;
       ``(K) paving, surfacing, and tamping equipment operators;
       ``(L) roofers;
       ``(M) sheetmetal duct installers;
       ``(N) structural metal workers;
       ``(O) power equipment operators (including truck drivers, 
     and backhoe, bulldozer, crane, loader, and grader operators);
       ``(P) sprinkler installers;
       ``(Q) elevator installers;
       ``(R) laborers; and
       ``(S) landscapers.
       ``(3) The term `contractor' includes firms, partnerships, 
     corporations, and any other persons, and any combination 
     thereof.
       ``(4) The term `covered construction contract' means an 
     agreement to provide labor and related materials, supplies, 
     or services for any construction that--
       ``(A) involves any construction assistance; and
       ``(B) if such construction assistance is provided--
       ``(i) under the community development block grant program 
     under title I of the Housing and Community Development Act of 
     1974 or the HOME Investment Partnerships Act, involves a 
     total project cost of not less than $100,000; or
       ``(ii) under any other program administered by the 
     Secretary, involves a total project cost of not less than 
     $200,000.
       ``(5) The term `subcontractor' means any firm, partnership, 
     corporation, or any other person, or any combination thereof, 
     who enters into a contract or agreement with a contractor to 
     perform a substantial specified portion of a covered 
     construction contract.''.

     SEC. 707. NOTIFICATION OF HUD FUNDING AWARDS.

       Section 102(a)(1) of the Department of Housing and Urban 
     Development Reform Act of 1989 (42 U.S.C. 3545(a)(1)) is 
     amended by adding at the end the following new sentence: 
     ``Each notice of the availability of assistance shall include 
     an estimate of the date by which the Department will notify 
     applicants for such assistance whose applications or requests 
     for assistance are approved of such approval.''.

     SEC. 708. EXCLUSION OF GNMA FROM HUD PERSONNEL CEILINGS.

       Section 502(a) of the Housing Act of 1948 (12 U.S.C. 
     1701c(a)) is amended by adding at the end the following new 
     sentence: ``Notwithstanding any other provision of law, 
     employees of the Government National Mortgage Association 
     Department in the Department of Housing and Urban Development 
     shall not be considered employees of the Department for 
     purposes of any limitation on the number of employees of the 
     Department.''.

     SEC. 709. HUD RESEARCH AND DEVELOPMENT.

       The second sentence of section 501 of the Housing and Urban 
     Development Act of 1970 (12 U.S.C. 1701z-1) is amended to 
     read as follows: ``There are authorized to be appropriated to 
     carry out this title $40,000,000 for fiscal year 1995 and 
     $42,000,000 for fiscal year 1996.''.

     SEC. 710. PREVENTING FRAUD AND ABUSE IN RURAL RENTAL HOUSING 
                   PROGRAM.

       (a) In General.--Section 904 of the Stewart B. McKinney 
     Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) 
     is amended--
       (1) in the heading for the section, by inserting ``AND 
     RURAL RENTAL HOUSING PROGRAM'' before the period at the end;
       (2) by striking paragraph (1) of subsection (a) and 
     inserting the following new paragraph:
       ``(1) Secretary concerned.--The term `Secretary concerned' 
     means--
       ``(A) the Secretary of Housing and Urban Development, with 
     respect to programs of the Department of Housing and Urban 
     Development; and
       ``(B) the Secretary of Agriculture, with respect to the 
     program for rural rental housing under section 515 of the 
     Housing Act of 1949.'';
       (3) in subsection (b), in the matter preceding paragraph 
     (1), by inserting after ``income,'' the following: ``and as a 
     condition of initial or continuing eligibility for 
     participation in the program for rural rental housing under 
     section 515 of the Housing Act of 1949,'';
       (4) in subsection (c)(2)(A)--
       (A) by inserting before ``from the improper'' the 
     following: ``or the program for rural rental housing under 
     section 515 of the Housing Act of 1949''; and
       (B) by inserting before ``and (in'' the following: ``and 
     the Department of Agriculture'';
       (5) in the last sentence of subsection (c)(3)(A), by 
     inserting ``an officer or employee of the Department of 
     Agriculture,'' after ``Development,'';
       (6) in subsection (e), by inserting after ``Development'' 
     the following: ``or the program for rural rental housing 
     under section 515 of the Housing Act of 1949,'';
       (7) in subsection (a)(2), in the matter in subsection (b) 
     that precedes paragraph (1), and in paragraphs (1) and (2) of 
     subsection (b), by striking ``the Secretary'' each place it 
     appears and inserting ``the Secretary concerned''; and
       (8) in subsection (b)(3)--
       (A) by striking ``the Secretary authorizing the Secretary'' 
     and inserting ``the Secretary concerned authorizing the 
     Secretary concerned''; and
       (B) by striking ``of the Secretary'' and inserting ``of the 
     Secretary concerned''.
       (b) Access to Records.--Section 303(i)(1) of the Social 
     Security Act (42 U.S.C. 503(i)(1)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i)--
       (A) by inserting ``or the Department of Agriculture, as 
     applicable,'' before ``and to representatives'';
       (B) by inserting ``of Housing and Urban Development or in 
     the program for rural rental housing under section 515 of the 
     Housing Act of 1949'' after ``by the Department''; and
       (C) by inserting ``or the Secretary of Agriculture, as 
     applicable'' before the dash at the end; and
       (2) in subparagraph (B), by inserting ``or under the 
     program for rural rental housing under section 515 of the 
     Housing Act of 1949'' before the period at the end.
       (c) Return Information.--Section 6103(l)(7)(D)(ix) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by inserting ``and the program for rural rental housing 
     under section 515 of the Housing Act of 1949'' after 
     ``income,'';
       (2) by inserting ``or the Secretary of Agriculture, as 
     applicable,'' after ``Secretary of Housing and Urban 
     Development''; and
       (3) by inserting ``or the Department of Agriculture'' 
     before ``with respect to''.

     SEC. 711. NATIONAL INSTITUTE OF BUILDING SCIENCES.

       The second sentence of section 809(i) of the Housing and 
     Community Development Act of 1974 (12 U.S.C. 1701j-2(i)) is 
     amended to read as follows: ``In addition to the amounts 
     authorized to be appropriated under the first sentence of 
     this subsection, there are authorized to be appropriated to 
     the Institute to carry out the provisions of this section 
     $2,000,000 for fiscal year 1995 and $2,000,000 for fiscal 
     year 1996.''.

     SEC. 712. RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION.

       (a) Target Housing Hazard Reduction.--
       (1) Authorization of appropriations.--Section 1011(p) of 
     the Housing and Community Development Act of 1992 (42 U.S.C. 
     4852(p)) is amended to read as follows:
       ``(p) Authorization of Appropriations.--For the purposes of 
     carrying out this Act, there are authorized to be 
     appropriated $100,000,000 for fiscal year 1995 and 
     $110,000,000 for fiscal year 1996.''.
       (2) Technical assistance and capacity building.--Section 
     1011(g) of the Housing and Community Development Act of 1992 
     (42 U.S.C. 4852(g)) is amended--
       (A) in paragraph (1)--
       (i) in the first sentence, by inserting before the period 
     at the end the following: ``, by providing technical 
     assistance, either directly, or indirectly under contracts or 
     otherwise''; and
       (ii) by striking the second sentence; and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Set-aside.--Of the total amount approved in 
     appropriation Acts under subsection (p), there shall be set 
     aside to carry out this subsection $3,000,000 for fiscal year 
     1995 and $3,000,000 for fiscal year 1996.''.
       (b) HUD Research.--
       (1) Conducting of research.--Section 1052 of the Housing 
     and Community Development Act of 1992 (42 U.S.C. 4854a) is 
     amended by inserting after ``other Federal agencies,'' the 
     following: ``either directly, or indirectly under contract or 
     otherwise,''.
       (2) Funding.--Section 1053 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 4854b) is amended to read 
     as follows:

     ``SEC. 1054. FUNDING.

       ``Of the total amount approved in appropriation Acts under 
     section 1011(p), there shall be set aside to carry out this 
     part $5,000,000 for fiscal year 1995 and $5,000,000 for 
     fiscal year 1996.''.
       (3) Other activities.--Part 1 of subtitle D of title X of 
     the Housing and Community Development Act of 1992 (42 U.S.C. 
     4854 et seq.) is amended by inserting after section 1052 the 
     following new section:

     ``SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVITIES.

       ``The Secretary may use amounts available to carry out this 
     part to undertake, either directly, or indirectly under 
     contract or otherwise, pursuant to title V of the Housing and 
     Urban Development Act of 1970, such studies, tests (including 
     pilot tests of new or revised programs), evaluations, 
     demonstrations, education of the public, and preparation of 
     training materials, as are consistent with the purposes of 
     this Act.''.

     SEC. 713. GAO STUDY OF LEAD-BASED PAINT DETECTION 
                   TECHNOLOGIES AND TENANT NOTIFICATION 
                   PROCEDURES.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the lead-based paint 
     detection and abatement programs of the Department of Housing 
     and Urban Development, which shall include--
       (1) analysis of existing lead-based paint detection 
     technologies including an analysis of the effectiveness of x-
     ray fluorescence analyzers (in this section referred to as 
     ``XRF'');
       (2) evaluation of the qualifications of XRF contractors and 
     whether national certification standards should be imposed;
       (3) analysis of whether the 1.0 mg/cm2 action level 
     for lead paint, as directed in section 302 of the Lead-Based 
     Paint Poisoning Prevention Act, is too high to adequately 
     protect tenant health, and in conduction such analysis, the 
     Comptroller General shall consult with the Consumer Product 
     Safety Commission, the Department of Health and Human 
     Services, and the Environmental Protection Agency; and
       (4) evaluation of the effectiveness of tenant notification 
     procedures of the Department of Housing and Urban Development 
     pursuant to a finding of lead-based paint in public housing.
       (b) Report.--Not later than the expiration of the 6-month 
     period beginning on the date of the enactment of this Act, 
     the Comptroller General shall submit to the Congress a report 
     describing the results of the study required by subsection 
     (a).

     SEC. 714. CIVIL MONEY PENALTIES FOR VIOLATIONS OF HOME 
                   MORTGAGE DISCLOSURE ACT BY NONSUPERVISED 
                   MORTGAGEES.

       Section 305 of the Home Mortgage Disclosure Act of 1975 (12 
     U.S.C. 2804) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by inserting ``and'' at the end;
       (B) in paragraph (3), by striking ``; and'' at the end and 
     inserting a period; and
       (C) by striking paragraph (4);
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Powers of the Secretary of Housing and Urban 
     Development.--
       ``(1) In general.--The Secretary of Housing and Urban 
     Development (in this subsection referred to as the 
     `Secretary') shall enforce compliance with the requirements 
     imposed under this title with regard to lending institutions 
     not described in subsection (b).
       ``(2) Civil money penalties.--Pursuant to paragraph (1) of 
     this subsection, the Secretary may impose a civil money 
     penalty for failure to comply with the requirements of this 
     title.
       ``(3) Amount of penalty.--The amount of the penalty, as 
     determined by the Secretary, may not exceed $5,000 for each 
     violation, except that the maximum penalty for all violations 
     by any particular lending institution during any 1-year 
     period shall not exceed $1,000,000.
       ``(4) Violations for which a penalty may be imposed.--A 
     civil money penalty may be imposed for the late submission of 
     a report, failure to submit a report, submission of an 
     illegible report, submission of an erroneous report, and 
     failure to submit a corrected report for a report that was 
     illegible or erroneous.
       ``(5) Agency procedures.--
       ``(A) Establishment.--The Secretary shall establish 
     standards and procedures governing the imposition of civil 
     money penalties under this section. The standards and 
     procedures shall provide for the Secretary to make the 
     determination to impose the penalty or to use an 
     administrative entity (such as the Mortgagee Review Board, 
     established pursuant to section 202(c) of the National 
     Housing Act) to make the determination; shall provide for the 
     imposition of a penalty only after the lending institution 
     has been given an opportunity for a hearing on the record; 
     and may provide for review by the Secretary of a 
     determination or order, or interlocutory ruling, arising from 
     a hearing.
       ``(B) Final orders.--If no hearing is requested within 15 
     days of receipt of the notice of opportunity for hearing, the 
     imposition of the penalty shall constitute a final and 
     unappealable determination. If the Secretary reviews the 
     determination or order, the Secretary may affirm, modify, or 
     reverse that determination or order. If the Secretary does 
     not review the determination or order within 90 days of the 
     issuance of the determination or order, the determination or 
     order shall be final.
       ``(C) Factors in determining amount of penalty.--In 
     determining the amount of a penalty under this subsection, 
     consideration shall be given to such factors as the gravity 
     of the offense, any history of prior offenses, ability to pay 
     the penalty, deterrence of future violations, and such other 
     factors as the Secretary may determine to be appropriate.
       ``(D) Reviewability of imposition of penalty.--The 
     Secretary's determination or order imposing a penalty under 
     this subsection shall not be subject to review, except as 
     provided in this subsection.
       ``(6) Judicial review of agency determination.--
       ``(A) In general.--After exhausting all administrative 
     remedies established by the Secretary under this subsection, 
     a lending institution against whom the Secretary has imposed 
     a civil money penalty under this subsection may obtain a 
     review of the penalty as may be addressed in the notice of 
     determination to impose a penalty in the appropriate court of 
     appeals of the United States, by filing in such court, within 
     20 days after the entry of such order or determination, a 
     written petition praying that the Secretary's determination 
     or order be modified or set aside in whole or in part.
       ``(B) Objections not raised in hearing.--The court shall 
     not consider any objection that was not raised in the hearing 
     conducted pursuant to this subsection unless a demonstration 
     is made of extraordinary circumstances causing the failure to 
     raise the objection. If any party demonstrates to the 
     satisfaction of the court that additional evidence not 
     presented at the hearing is material and that there were 
     reasonable grounds for the failure to present such evidence 
     at the hearing, the court shall remand the matter to the 
     Secretary for consideration of the additional evidence.
       ``(C) Scope of review.--The decisions, findings, and 
     determinations of the Secretary shall be reviewed pursuant to 
     section 706 of title 5, United States Code.
       ``(D) Order to pay penalty.--Notwithstanding any other 
     provision of law, in any such review, the court shall have 
     the power to order payment of the penalty imposed by the 
     Secretary.
       ``(7) Action to collect penalty.--If a lending institution 
     fails to comply with the Secretary's determination or order 
     imposing a civil money penalty under this subsection, after 
     the determination or order is no longer subject to review as 
     provided by this subsection, the Secretary may bring an 
     action in an appropriate United States district court to 
     obtain a monetary judgment against the lending institution. 
     In such an action, the validity and appropriateness of the 
     Secretary's determination or order imposing the penalty shall 
     not be subject to review. The monetary judgment may, in the 
     court's discretion, include the attorneys fees and other 
     expenses incurred by the United States in connection with the 
     action.
       ``(8) Settlement by secretary.--The Secretary may 
     compromise, modify, or remit any civil money penalty which 
     may be imposed under this subsection.
       ``(9) Regulations.--The Secretary shall issue such 
     regulations as the Secretary deems appropriate to implement 
     this subsection.
       ``(10) Deposit of penalties in treasury.--All civil money 
     penalties collected under this subsection shall be deposited 
     in the Miscellaneous Receipts Account of the Treasury.''.

     SEC. 715. REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE 
                   HOUSING.

       (a) Purposes.--Section 1202 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 12705a) is amended--
       (1) in paragraph (1), by striking ``State and local 
     governments to further identify and remove'' and inserting 
     ``the further identification and removal of''; and
       (2) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) to encourage the establishment of partnerships 
     between local governments and builders and developers of 
     affordable housing to facilitate development of innovative 
     land use and building practices to overcome regulatory 
     barriers.''.
       (b) Grants.--Section 1204 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 12705c) is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) In General.--The amounts available for use under this 
     Act may be used for grants under subsections (b) and (c), for 
     evaluation of grantees, and for contracts with intermediaries 
     for the administration of such grants.'';
       (2) in subsection (b)--
       (A) in the heading for the subsection, by striking 
     ``Grants'' and inserting ``and Regional Strategies for 
     Barrier Removal'';
       (B) in matter preceding paragraph (1), by inserting after 
     ``States'' the following: ``, consortia of units of general 
     local government, associations of units of general local 
     government, and metropolitan or regional governments'';
       (C) in paragraph (3), by striking ``a State program to 
     reduce State and local'' and inserting ``State or regional 
     programs to reduce'';
       (D) in paragraph (4), by inserting ``or local'' after 
     ``State'';
       (E) in paragraph (5), by striking ``State''; and
       (F) by striking paragraph (6) and inserting the following 
     new paragraph:
       ``(6) developing proposed legislation or administrative 
     policies for enactment by the State or local government 
     addressing expanded housing opportunity and barrier removal, 
     including implementation of active programs encouraging 
     housing opportunities for low- and moderate-income families 
     through activities such as comprehensive planning 
     requirements, metropolitan fair-share requirements for 
     affordable housing, inclusionary zoning legislation, 
     establishment of new land development standards, and review 
     of zoning standards and plans.'';
       (3) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Barrier Removal Demonstration.--The Secretary may 
     make grants to units of general local government to encourage 
     the establishment of partnerships between local governments 
     and builders and developers under which the local government 
     commits to modify existing land use and building practices 
     and the builder or developer agrees to use innovative land 
     planning and development approaches to build affordable 
     housing in ways which would overcome regulatory barriers. 
     Assistance under this subsection may be used to assist the 
     builder or developer obtain additional architectural, 
     engineering, and land planning services to build affordable 
     housing and to provide assistance to the locality in 
     providing specialized review and in meeting technical 
     responsibilities resulting from the removal of the regulatory 
     barriers. During and after completion of these demonstration 
     projects, the Secretary may evaluate the cost impact of the 
     modified regulations and the long-term impact of the project 
     on regulatory reform.'';
       (4) by striking subsections (d) through (g) and inserting 
     the following new subsection:
       ``(d) Application and Selection.--
       ``(1) Application.--The Secretary shall provide for the 
     form and manner of applications for grants under this 
     section, which in the case of grants under subsection (c), 
     shall include resolutions and other evidence by the 
     applicable regulating bodies evidencing commitments--
       ``(A) to waive or modify existing applicable zoning, 
     building code, site planning, and other related development 
     requirements;
       ``(B) to approve the project based upon an individual 
     review of the technical data, site plans, and architectural 
     submissions of the project, utilizing the most recent 
     research and practices of building engineering and land 
     development; and
       ``(C) to accelerate development review and processing.
       ``(2) Criteria for approval.--The Secretary shall establish 
     criteria for approval of applications under this subsection 
     and for the competitive selection of grantees under this 
     section.'';
       (5) in subsection (h), by striking ``State and unit of 
     general local government receiving'' and inserting 
     ``recipient of''; and
       (6) by redesignating subsections (h) and (i) as subsections 
     (e) and (f), respectively.
       (c) Reports.--Section 1207 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 12705a note) is amended by 
     striking ``this Act'' and inserting ``the Housing and 
     Community Development Act of 1994''.
       (d) CDBG Special Purpose Grants.--Section 107(b) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5307(b)) is amended by inserting at the end the following new 
     paragraph:
       ``(9) to eligible grantees, and for other purposes, under 
     the Removal for Regulatory Barriers to Affordable Housing Act 
     of 1992.''.

     SEC. 716. NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY 
                   RELIEF OF LOS ANGELES.

       (a) Insurance Authority.--The first sentence of section 
     1104(d) of the Housing and Community Development Act of 1992 
     (42 U.S.C. 5318 note) is amended to read as follows: ``To the 
     extent provided in appropriation Acts, the Secretary shall 
     use any authority provided pursuant to section 531(b) of the 
     National Housing Act to enter into commitments to insure 
     loans and mortgages under this section in fiscal years 1995 
     and 1996 with an aggregate principal amount not exceeding 
     such sums as may be necessary to carry out the demonstration 
     under this title.''.
       (b) Second Mortgage Assistance.--Section 1105(e) of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 5318 
     note) is amended to read as follows:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 1995 and 1996 
     such sums as may be necessary for providing assistance under 
     this section.''.
       (c) Community Development Assistance.--Section 1106(h) of 
     the Housing and Community Development Act of 1992 (42 U.S.C. 
     5318 note) is amended to read as follows:
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 1995 and 1996 
     such sums as may be necessary for assistance under this 
     section.''.

     SEC. 717. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC SERVICES 
                   FACILITY.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated for fiscal year 1995 such sums as may be 
     necessary for a grant by the Secretary of Housing and Urban 
     Development to the City of Springfield, Massachusetts (in 
     this section referred to as the ``City''), for the 
     redevelopment of a facility formerly used as a United States 
     Post Office for use as a consolidated facility for city 
     public services in accordance with the plans, budgets, and 
     timetables for such facility developed by the City.
       (b) City Contribution.--Notwithstanding any other provision 
     of this section, the Secretary may not make any amount 
     provided pursuant to this section available to the City 
     unless the City contributes for redevelopment of the facility 
     referred to in subsection (a) an amount constituting not less 
     than 25 percent of the total cost of the redevelopment 
     project.
       (c) Availability of Amounts.--Of any amounts appropriated 
     pursuant to this section, the Secretary shall provide 
     $2,500,000 to the City in fiscal year 1995 and the remainder 
     shall remain available until the end of fiscal 1996 and shall 
     be provided to the City in such year.
       (d) Reports.--The Secretary may require the City to submit 
     such reports and other information as the Secretary considers 
     necessary to ensure that the amounts provided under this 
     section are used in accordance with this section and that 
     amounts are provided by the City in accordance with 
     subsection (b).

     SEC. 718. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

       There is authorized to be appropriated for assistance for 
     the National American Indian Housing Council $1,000,000 for 
     fiscal year 1995 and $1,000,000 for fiscal year 1996, for 
     providing training and technical assistance to Indian Housing 
     Authorities.

     SEC. 719. HOUSING ASSISTANCE COUNCIL.

       There is authorized to be appropriated for assistance for 
     the Housing Assistance Council $5,000,000 for fiscal year 
     1995 and $5,000,000 for fiscal year 1996, for providing 
     training, technical assistance, and financial assistance to 
     develop affordable housing in rural areas.

     SEC. 720. DEMONSTRATION PROGRAM FOR OUTREACH TO AVOID 
                   DISCONNECTION OF UTILITIES.

       (a) Action of Secretary.--The Secretary of Housing and 
     Urban Development shall provide technical advice and 
     assistance to Maryland Energy Advocates to establish and 
     carry out a program under (b).
       (b) Outreach Program.--The program under this subsection 
     shall be a program, carried out by Maryland Energy Advocates, 
     to--
       (1) identify low-income families living in Baltimore, 
     Maryland, and the surrounding areas, including low-income 
     families residing in housing for which assistance is provided 
     by the Federal Government, whose electricity or other utility 
     services have been disconnected because of failure to pay 
     amounts owed;
       (2) provide counseling and advice to such families 
     regarding utility payments, family budgeting, sources and 
     programs of assistance for utility payments, and such other 
     matters as may be necessary to avoid the disconnection of 
     utility service in the future; and
       (3) determine the most effective manners of identifying 
     low-income families in need of advice or assistance to avoid 
     disconnection of utility services and the most effective 
     actions to help low-income families avoid such disconnection.
       (c) Report.--After consultation with Maryland Energy 
     Advocates regarding the implementation and results of the 
     program under subsection (b), but not later than the 
     expiration of the 18-month period beginning on the date of 
     the enactment of this Act, the Secretary of Housing and Urban 
     Development shall submit a report to the Congress that--
       (1) describes the program and the activities carried out 
     under the program;
       (2) describes the extent to which the utility services of 
     low-income families are disconnected; and
       (3) identifies the most effective manners of identifying 
     low-income families in need of advice or assistance to avoid 
     disconnection of utility services and the most effective 
     actions to help low-income families avoid such disconnection, 
     including any such actions appropriate for the Federal 
     Government.

     SEC. 721. FEDERAL DEPOSIT INSURANCE CORPORATION AFFORDABLE 
                   HOUSING PROGRAM.

       (a) Reauthorization.--Section 40(b) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1831q(b)) is amended--
       (1) in paragraph (1), by striking ``during'' and all that 
     follows through ``paragraph (2)(A)'' and inserting ``until 
     the end of fiscal year 1997'';
       (2) in paragraph (2)(A), in the matter preceding clause 
     (i), by striking ``3-year''; and
       (3) in paragraph (2)(C), by striking ``3-year''.
       (b) Facilitation of Program.--Section 40 of the Federal 
     Deposit Insurance Act is amended by adding at the end the 
     following new subsection:
       ``(r) Facilitation of Program.--Notwithstanding any 
     provision of this section or any other provision of law, the 
     Corporation shall be considered to be in compliance with this 
     section if (in the sole discretion of the Corporation) the 
     Corporation at any time modifies, amends, or waives any 
     provisions of this section to maximize the efficient use of 
     amounts appropriated to carry out this section. The 
     Corporation shall not be subject to suit for any failure to 
     comply with the requirements of this section.''.

     SEC. 722. STATE AGENCIES AS SURETIES.

       Section 9304 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) State Agencies.--A State agency, including any 
     financing authority established by any State, which meets the 
     requirements of paragraphs (2) and (3) of subsection (a) may 
     be treated as a surety corporation for purposes of this 
     chapter.''.
    TITLE VIII--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS 
                             ASSISTANCE ACT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Stewart B. McKinney 
     Homeless Housing Assistance Amendments Act of 1994''.
                     Subtitle A--Housing Assistance

  CHAPTER 1--REORGANIZATION OF CERTAIN MCKINNEY ACT HOUSING PROVISIONS

     SEC. 811. FLEXIBLE GRANT PROGRAM.

       Title IV of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.) is amended--
       (1) by striking subtitles A, B, C, D, and F;
       (2) by striking the headings for subtitles E and G;
       (3) by redesignating sections 441 (as amended by the 
     preceding provisions of this Act), 491, and 592 (as added by 
     section 1414 of the Housing and Community Development Act of 
     1992) as sections 451, 453, and 454, respectively;
       (4) by striking sections 442 and 443; and
       (5) by inserting after the heading for the title the 
     following:
                  ``Subtitle A--Flexible Grant Program

                    ``CHAPTER 1--GENERAL PROVISIONS

     ``SEC. 401. PURPOSES.

       ``The purposes of this subtitle are to--
       ``(1) expand and reorganize the Federal commitment to 
     alleviate homelessness by providing States, Indian tribes, 
     and localities with the resources to more efficiently and 
     effectively design a comprehensive system to address the 
     shelter, service, and permanent housing needs of homeless 
     individuals and families in the United States;
       ``(2) help very low-income families avoid becoming 
     homeless;
       ``(3) meet the emergency shelter needs of homeless persons 
     and families;
       ``(4) provide transitional or specialized permanent housing 
     to facilitate the movement of homeless persons and families 
     to independent living;
       ``(5) provide supportive services to help homeless persons 
     and families lead independent and dignified lives;
       ``(6) encourage the cooperation and participation of the 
     States and units of general local government, together with 
     private nonprofit organizations, in planning and implementing 
     comprehensive homeless assistance programs;
       ``(7) reduce the costs to States, units of general local 
     government, and private nonprofit organizations in applying 
     for and using Federal housing assistance for families and 
     persons who are homeless; and
       ``(8) begin meeting the needs of most of the Nation's 
     homeless population through the existing Federal programs 
     providing basic assistance for low-income families and 
     persons.

     ``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated--
       ``(1) $635,000,000 for fiscal year 1995 for grants in 
     accordance with section 813 of the Housing and Community 
     Development Act of 1994; and
       ``(2) $786,620,000 for fiscal year 1996 for grants under 
     this subtitle.

     Any amounts appropriated pursuant to this section shall 
     remain available until expended.

     ``SEC. 403. DEFINITIONS.

       ``For purposes of this subtitle, the following definitions 
     shall apply:
       ``(1) The term `allocation unit of general local 
     government' means a metropolitan city and an urban county.
       ``(2) The term `applicant' means an eligible grantee that 
     submits an application under section 408 for a grant under 
     this subtitle.
       ``(3) The term `disability' means--
       ``(A) a disability as defined in section 223 of the Social 
     Security Act;
       ``(B) to be determined to have, pursuant to regulations 
     issued by the Secretary, a physical, mental, or emotional 
     impairment which (i) is expected to be a long-continued and 
     indefinite duration, (ii) substantially impedes an 
     individual's ability to live independently, and (iii) of such 
     a nature that such ability could be improved by more suitable 
     housing conditions;
       ``(C) a developmental disability as defined in section 102 
     of the Developmental Disabilities Assistance and Bill of 
     Rights Act; or
       ``(D) the disease of acquired immunodeficiency syndrome or 
     any conditions arising from the etiologic agency for acquired 
     immunodeficiency syndrome.

     Subparagraph (D) shall not be construed to limit eligibility 
     under subparagraphs (A) through (C) or the provisions 
     referred to in subparagraphs (A) through (C).
       ``(4) The term `eligible grantee' means--
       ``(A) an allocation unit of general local government, 
     Indian Tribe, or insular area that elects to administer a 
     grant under section 410(a)(1);
       ``(B) a public agency or a private nonprofit organization 
     (or a consortium of such organizations) designated by the 
     Secretary under section 410(a)(3) to administer grant amounts 
     for an allocation unit of general local government, Indian 
     tribe, or insular area;
       ``(C) an entity eligible to receive grant amounts from the 
     Secretary under section 410(a)(4);
       ``(D) a State that elects under section 410(b)(1)(A) to 
     administer a grant;
       ``(E) a unit of general local government selected under 
     section 410(b)(5) to receive grant amounts from the 
     Secretary; and
       ``(F) a private nonprofit organization selected under 
     section 410(b)(4) to receive grant amounts from the 
     Secretary.
       ``(5) The term `families' has the same meaning given the 
     term under section 3(b) of the United States Housing Act of 
     1937.
       ``(6) The term `grantee' means--
       ``(A) an allocation unit of general local government, 
     Indian Tribe, or insular area that receives a grant under 
     this subtitle and administers the grant under section 
     410(a)(1);
       ``(B) an allocation unit of general local government, 
     Indian tribe, or insular area that receives a grant under 
     this subtitle and designates a public agency or private 
     nonprofit organization (or a consortium of such 
     organizations) to administer grant amounts for the 
     jurisdiction under section 410(a)(2);
       ``(C) a public agency or a private nonprofit organization 
     (or a consortium or such organizations) designated by the 
     Secretary under section 410(a)(3) to administer grant amounts 
     for an allocation unit of general local government, Indian 
     tribe, or insular area, and that receives grant amounts under 
     this subtitle;
       ``(D) an entity that receives grant amounts from the 
     Secretary under section 410(a)(4);
       ``(E) a State that receives grant amounts under this 
     subtitle and administers such amounts under section 
     410(b)(1)(A);
       ``(F) a unit of general local government that receives 
     grant amounts from the Secretary under section 410(b)(5); and
       ``(G) a private nonprofit organization that receives grant 
     amounts from the Secretary under section 410(b)(4);
       ``(7) The term `homeless family' means a group of one or 
     more related individuals who are homeless individuals.
       ``(8) The term `Indian tribe' means any Indian tribe, band, 
     group, and nation, including Alaska Indians, Aleuts, and 
     Eskimos, and any Alaskan Native Village, of the United 
     States, which is considered an eligible recipient under the 
     Indian Self-Determination and Education Assistance Act or was 
     considered an eligible recipient under chapter 67 of title 
     31, United States Code, before the repeal of such chapter.
       ``(9) The term `insular area' means the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands.
       ``(10) The term `low-demand services and referrals' means 
     the provision of health care, mental health, substance abuse, 
     and other supportive services and referrals for services in a 
     noncoercive manner, which may include medication management, 
     education, counseling, job training, and assistance in 
     obtaining entitlement benefits and in obtaining other 
     supportive service including mental health treatment and 
     substance abuse treatment.
       ``(11) The term `metropolitan city' has the meaning given 
     the term in section 102(a) of the Housing and Community 
     Development Act of 1974.
       ``(12) The term `operating costs' means expenses of 
     operating any housing assisted under this subtitle with 
     respect to--
       ``(A) the administration, maintenance, repair, and security 
     of such housing;
       ``(B) utilities, fuels, furnishings, and equipment for such 
     housing; and
       ``(C) the conducting of the assessments of and the 
     provision of supportive services to the residents of such 
     housing.
       ``(13) The term `outpatient health services' means 
     outpatient health care, outpatient mental health services, 
     outpatient substance abuse services, case management services 
     and child immunization.
       ``(14) The term `private nonprofit organization' means an 
     organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(15) The term `project' means a structure or a portion of 
     a structure that is acquired or rehabilitated with assistance 
     provided under this subtitle or with respect to which the 
     Secretary provides technical assistance or annual payments 
     for operation costs.
       ``(16) The term `project sponsor' means an entity that--
       ``(A) provides housing or assistance for homeless 
     individuals or families by carrying out eligible activities 
     under chapter 2 that are assisted under this subtitle; and
       ``(B) meets such minimum standards as the Secretary 
     considers appropriate.
       ``(17) The term `recipient' means a grantee (other than a 
     State distributing grant amounts to State recipients) and a 
     State recipient.
       ``(18) The term `Secretary' means the Secretary of Housing 
     and Urban Development.
       ``(19) The term `State' means a State of the United States 
     and the Commonwealth of Puerto Rico, or any agency or 
     instrumentality thereof that is established pursuant to 
     legislation and designated by the chief executive to act on 
     behalf of the jurisdiction with regard to provisions of this 
     subtitle.
       ``(20) The term `State recipient' means--
       ``(A) a unit of general local government within a State 
     (other than an allocation unit of general local government) 
     that receives grant amounts from the State under section 
     410(b)(3); and
       ``(B) a private nonprofit organization that receives grant 
     amounts from a State under section 410(b)(4).
       ``(21)(A) The term `supportive services' means assistance 
     that--
       ``(i) addresses the special needs of homeless person, such 
     as deinstitutionalized persons, families with children, 
     persons with mental disabilities, other persons with 
     disabilities, the elderly, and veterans intended to be served 
     by a project; and
       ``(ii) assists in accomplishing the purposes of the 
     different types of housing for the homeless eligible for 
     assistance under this subtitle.
       ``(B) Such term includes--
       ``(i) food services, child care, substance abuse treatment, 
     assistance in obtaining permanent housing, outpatient health 
     services, employment counseling, nutritional counseling, 
     security arrangements for the protection of residents of 
     facilities to assist the homeless, and such other services 
     essential for maintaining or moving toward independent living 
     as the Secretary determines to be appropriate; and
       ``(ii) assistance to homeless persons in obtaining other 
     Federal, State, and local assistance available for such 
     individuals, including public assistance benefits, mental 
     health benefits, employment counseling, and medical 
     assistance.
       ``(C) Such term does not include the provision of major 
     medical equipment.
       ``(D) All or part of the supportive services may be 
     provided directly by the project sponsor or by arrangements 
     with other public or private service providers.
       ``(22) The term `unit of general local government' means--
       ``(A) a city, town, township, county, parish, village, or 
     other general purpose political subdivision of a State;
       ``(B) the District of Columbia; and
       ``(C) any agency or instrumentality thereof that is 
     established pursuant to legislation and designated by the 
     chief executive to act on behalf of the jurisdiction with 
     regard to provisions of this subtitle.

     The term includes a consortium of geographically contiguous 
     units of general local government if the Secretary determines 
     that the consortium--
       ``(i) has sufficient authority and administrative 
     capability to carry out the purposes of this subtitle on 
     behalf of its member jurisdictions; and
       ``(ii) will, according to a written certification by the 
     State (or State, if the consortium includes jurisdictions in 
     more than one State), direct its activities to alleviation of 
     problems of homeless individuals or families within the State 
     or States.
       ``(23) The term `urban county' has the meaning given the 
     term in section 102(a) of the Housing and Community 
     Development Act of 1974.
       ``(24) The term `very low-income families' has the same 
     meaning given the term under section 104 of the Cranston-
     Gonzalez National Affordable Housing Act.

     ``SEC. 404. PROVISION OF GRANTS.

       ``(a) Authority and Use.--The Secretary may make grants to 
     eligible grantees in accordance with the provisions of this 
     subtitle. Grants under this subtitle may be used only--
       ``(1) to carry out activities under chapter 2 for assisting 
     homeless individuals and families that are conducted to 
     provide comprehensive homeless assistance required under 
     section 405; and
       ``(2) for administrative expenses, to the extent provided 
     in section 436.
       ``(b) General Rule for Award of Grants.--Except as provided 
     in subsection (c), the Secretary shall make grants using 
     amounts appropriated under section 402 in the manner provided 
     in this subtitle.
       ``(c) Insufficient Appropriations.--
       ``(1) Trigger.--If the amounts appropriated pursuant to 
     section 402 for any fiscal year are less than 50 percent of 
     the amount authorized to be appropriated under such section 
     for the year, the Secretary shall use such amounts to make 
     grants under the provisions of this title as in effect 
     immediately before the enactment of the Housing and Community 
     Development Act of 1994.
       ``(2) Grant requirements.--The Secretary shall establish 
     requirements for grants made under this subsection, as the 
     Secretary considers appropriate, that are additional or 
     alternative to the requirements under the provisions of this 
     title as in effect immediately before the enactment of the 
     Housing and Community Development Act of 1994.
       ``(3) Grant criteria.--The criteria for awarding grants 
     under this subsection shall include--
       ``(A) the extent to which there is a need for assistance 
     for homeless individuals and families in the jurisdiction in 
     which the grant will be used;
       ``(B) the extent to which the activities proposed to be 
     carried out with grant amounts will further the provision of 
     comprehensive homeless assistance required under section 
     405(b)(1);
       ``(C) the extent to which private nonprofit organizations 
     providing assistance to homeless individuals and families in 
     the jurisdiction have been, and will be, included in planning 
     for the receipt of assistance under this subtitle, the 
     development of the application under section 408, and the 
     execution of the proposed activities; and
       ``(D) such other criteria as the Secretary considers 
     appropriate to further the purposes of this subsection and 
     this subtitle.
       ``(4) Set aside for indian tribes and insular areas.--In 
     making grants under this subsection, the Secretary may to set 
     aside such amounts as the Secretary considers appropriate for 
     grants for Indian tribes and insular areas.

     ``SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

       ``(a) Establishment and Maintenance.--Each applicant shall, 
     based on information provided in the current comprehensive 
     affordable housing strategy for the appropriate jurisdiction 
     under section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act or such other plan as the Secretary 
     may prescribe, use assistance provided under this subtitle in 
     a manner that ensures that comprehensive homeless assistance 
     is established and maintained within the jurisdiction of the 
     applicant.
       ``(b) Requirements.--For purposes of this subtitle, 
     comprehensive homeless assistance required under this section 
     shall include--
       ``(1) providing a system of outreach and assessment for--
       ``(A) determining whether an individual or family is 
     homeless, needs assistance to avoid being homeless, or needs 
     other assistance; and
       ``(B) ensuring that individuals and families so identified 
     receive appropriate housing and supportive services;
       ``(2) providing assistance to the extent necessary to avoid 
     eviction (or foreclosure) and termination of utility services 
     of low- and very low-income families to prevent such families 
     from becoming homeless;
       ``(3) making emergency shelters with appropriate supportive 
     services available to the extent necessary to ensure that 
     homeless individuals and families for which such housing is 
     appropriate receive adequate shelter, including during any 
     period in which an assessment referred to in paragraph (1) is 
     performed for such an individual or family;
       ``(4) making transitional housing with appropriate 
     supportive services available to the extent necessary to 
     ensure that homeless individuals and families for which such 
     housing is appropriate are prepared for increased 
     responsibility and permanent housing, or permanent supportive 
     housing, after the transition period;
       ``(5) making permanent supportive housing, available to the 
     extent necessary to meet the long-term housing needs of all 
     homeless individuals and families;
       ``(6) providing assistance to meet specific needs of 
     various subpopulations of the homeless, especially the unique 
     needs of homeless veterans; and
       ``(7) providing for coordination of assistance provided 
     under this subtitle and assistance provided under other 
     Federal, State, and local programs that may be used to assist 
     homeless individuals and families, including--
       ``(A) assistance under the programs for public and Indian 
     housing and section 8 rental assistance under the United 
     States Housing Act of 1937 (including the program for section 
     8 assistance for moderate rehabilitation under section 451 of 
     this Act and the shelter plus care program for such 
     assistance under section 452 of this Act), the HOME 
     Investment Partnerships Act, the community development block 
     grant program under title I of the Housing and Community 
     Development Act of 1974, the program for supportive housing 
     for the elderly under section 202 of the Housing Act of 1959, 
     the program for supportive housing for persons with 
     disabilities under section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act, and the program for housing 
     opportunities for persons with AIDS under subtitle D of title 
     VIII of the Cranston-Gonzalez National Affordable Housing 
     Act;
       ``(B) programs administered by the Director of the Federal 
     Emergency Management Agency;
       ``(C) programs administered by the Secretary of Labor, 
     including programs for employment and training;
       ``(D) programs administered by the Secretary of Health and 
     Human Services, including programs for health care, mental 
     health care, social services, income support services, 
     runaway youth, and unfit transient facilities;
       ``(E) programs administered by the Secretary of Veterans 
     Affairs (including programs for compensation benefits, health 
     care, and mental health care, and other services and 
     programs) that are specifically designed to assist homeless 
     veterans;
       ``(F) programs administered by the Secretary of Education, 
     including programs for adult education and education for 
     homeless children and youth;
       ``(G) programs administered by the Corporation for National 
     and Community Service, including programs for national 
     service; and
       ``(H) such other assistance as the Secretary shall 
     prescribe upon consultation with the Interagency Council on 
     the Homeless.

     ``SEC. 406. MATCHING REQUIREMENTS.

       ``(a) In General.--Except as provided in subsection (c), 
     each recipient shall supplement the amount of grants provided 
     under this subtitle to the recipient with an equal amount of 
     funds from non-Federal sources, which shall include funds 
     from project sponsors receiving assistance from the 
     recipient.
       ``(b) Supplemental Funds.--Supplemental funds may include 
     (1) the value of any donated material or building, the value 
     of any lease on a building, (2) any salary paid to staff to 
     carry out the program of a project sponsor, (3) the value of 
     the time and services contributed by volunteers to carry out 
     the program of project sponsor at a rate determined by the 
     Secretary, and (4) the proceeds from bond financing validly 
     issued by a State or unit of general local government, 
     agency, or instrumentality thereof, and repayable with 
     revenues derived from a project assisted under this subtitle, 
     except that not more than 25 percent of the contribution 
     required may be derived from the proceeds of such bond 
     financings. Any State or local government funds used 
     independently from the program under this title, or 
     designated for such use, to assist the homeless by carrying 
     out activities that would be eligible for assistance under 
     this subtitle shall be considered supplemental funds under 
     this section.
       ``(c) States.--
       ``(1) Required supplementation.--Except as provided in 
     paragraph (3), in the case of a State administering grant 
     amounts under section 410(b)(1)(A), in each fiscal year, the 
     State shall supplement the amount of grants provided under 
     this subtitle with an amount of funds from sources other than 
     this subtitle equal to the difference between the amount 
     received under this subtitle and $100,000.
       ``(2) Benefit of match.--Each grantee that is a State shall 
     obtain any supplemental amounts required under paragraph (1) 
     from State recipients receiving amounts under the grant in a 
     manner so that the benefit of the $100,000 subtrahend under 
     paragraph (1) is appropriately divided among State recipients 
     for which providing such supplemental amounts would--
       ``(A) create a significant hardship for the recipient; or
       ``(B) interfere with the overall purpose of the homeless 
     assistance program of the recipient.
       ``(3) Exception.--If, in any fiscal year, a State receives 
     $100,000 or less in grant amounts under this subtitle, 
     paragraph (1) shall not apply to the State for the fiscal 
     year.
       ``(d) Certification.--Each recipient shall certify, to the 
     satisfaction of the Secretary, its compliance with the 
     provisions of this section, which shall describe the sources 
     and amounts of supplemental funds provided pursuant to this 
     section.

     ``SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND PROJECT 
                   SPONSORS.

       ``(a) Use of Assistance Through Private Nonprofit 
     Organizations.--Each recipient shall make available more than 
     50 percent of the grant amounts it receives for any fiscal 
     year to project sponsors that are private nonprofit 
     organizations to carry out eligible activities under chapter 
     2, except that the Secretary may waive the applicability of 
     this requirement if the recipient demonstrates to the 
     Secretary that the requirement interferes with the ability of 
     the recipient to provide assistance under this subtitle 
     because of a paucity of qualified private nonprofit 
     organizations in the jurisdiction of the recipient.
       ``(b) Housing Quality.--Each recipient shall ensure that 
     housing assisted with grant amounts provided under this 
     subtitle is decent, safe, and sanitary and, when appropriate, 
     complies with all applicable State and local housing codes, 
     building codes, and licensing requirements in the 
     jurisdiction in which the housing is located.
       ``(c) Prevention of Undue Benefit.--The Secretary may 
     prescribe such terms and conditions as the Secretary 
     considers necessary to prevent project sponsors from unduly 
     benefiting from the sale or other disposition of projects 
     other than a sale or other disposition resulting in the use 
     of the project for the direct benefit of very low-income 
     families.
       ``(d) Confidentiality.--Each recipient shall develop and 
     implement procedures to ensure the confidentiality of records 
     pertaining to any individual provided family violence 
     prevention or treatment services under any project and to 
     ensure that the address or location or any family violence 
     shelter project assisted with grant amounts under this 
     subtitle will, except with written authorization of the 
     person or person responsible for the operation of such 
     shelter, not be made public.
       ``(e) Employment of Homeless Individuals.--To the maximum 
     extent practicable, the Secretary shall ensure that 
     recipients involve, through employment, volunteer services, 
     or otherwise, homeless individuals and families in 
     constructing, renovating, maintaining, and operating 
     facilities assisted with grant amounts under this subtitle, 
     in providing services so assisted, and in providing services 
     for occupants of facilities so assisted.
       ``(f) Participation of Homeless Individuals.--The Secretary 
     shall, by regulation, provide that each recipient shall 
     require each project sponsor receiving assistance under this 
     subtitle from the recipient to provide for the participation 
     of not less than one homeless individual or formerly homeless 
     individual on the board of directors or other equivalent 
     policy making entity of the project sponsor, to the extent 
     that such entity considers and makes policies and decision 
     regarding any project, facility, services, or other 
     activities assisted with grant amounts under this subtitle. A 
     recipient may grant waivers to project sponsors unable to 
     meet the requirement under the preceding sentence if the 
     project sponsor agrees to otherwise consult with homeless or 
     formerly homeless individuals in considering and making such 
     policies and decisions.

     ``SEC. 408. APPLICATION.

       ``(a) Requirement.--Except as otherwise provided in section 
     404(c), the Secretary may make a grant under this subtitle 
     only to an eligible grantee that submits an application under 
     this section that is approved by the Secretary.
       ``(b) Form and Procedure.--Applications shall be submitted 
     in such form and in accordance with such procedures as the 
     Secretary shall, by regulation, establish.
       ``(c) Content.--An application under this section shall--
       ``(1) include a detailed description, based on information 
     provided in the current comprehensive housing affordability 
     strategy under section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act for the appropriate jurisdiction or 
     such other plan as the Secretary may prescribe, of--
       ``(A) the existing population of homeless individuals and 
     families for the jurisdiction of the applicant; and
       ``(B) the existing facilities and services designed to 
     assist such population;
       ``(2) include a detailed description of the comprehensive 
     homeless assistance under section 405 to be established and 
     maintained within the jurisdiction of the applicant;
       ``(3) provide an assessment of what is required to 
     establish and maintain the provision of comprehensive 
     homeless assistance required under section 405 for the 
     jurisdiction of the applicant;
       ``(4) set forth a multiyear strategy for establishing and 
     maintaining the provision of comprehensive homeless 
     assistance for the jurisdiction, as described pursuant to 
     paragraph (2), and include timetables, goals, and budget 
     estimates for accomplishing each element of the strategy;
       ``(5) set forth a 1-year action plan that identifies all 
     activities to be carried out with assistance under this 
     subtitle and demonstrates how such activities will further 
     the strategy set forth pursuant to paragraph (4);
       ``(6) except in the case of an application by a State that 
     elects under section 410(b)(1)(A) to administer grants under 
     this subtitle, describe the means the applicant will use to 
     distribute grant amounts to project sponsors and whether such 
     amounts will be awarded on a competitive or noncompetitive 
     basis;
       ``(7) contain certifications or other such forms of proof 
     of commitments of financial and other resources from each 
     public agency or private nonprofit organization that has a 
     role in establishing and maintaining the provision of 
     comprehensive homeless assistance for the jurisdiction of the 
     applicant, required under section 405;
       ``(8) contain assurances satisfactory to the Secretary that 
     activities carried out under chapter 2 with grant amounts 
     under this subtitle will comply with the requirements of this 
     subtitle;
       ``(9) in the case of an application by a State that elects 
     to under section 410(b)(1)(A) administer grants under this 
     subtitle, describe the method of distribution of such amounts 
     to State recipients;
       ``(10) except with respect to an application by a State 
     that elects to under section 410(b)(1)(A) to administer 
     grants under this subtitle, contain a certification from the 
     public official responsible for submitting the comprehensive 
     housing affordability strategy under section 105 of the 
     Cranston-Gonzalez National Affordable Housing Act for the 
     State or unit of general local government within which a 
     project is to be located (or such other plan as the Secretary 
     may require) that the proposed project is consistent with the 
     approved housing strategy of such State or unit of general 
     local government;
       ``(11) contain a certification that the applicant will 
     comply with the requirements of the Fair Housing Act, title 
     VI of the Civil Rights Act of 1964, section 504 of the 
     Rehabilitation Act of 1973, and the Age Discrimination Act of 
     1975, and will affirmatively further fair housing; and
       ``(12) contain a certification that the applicant will 
     comply with the requirements of this subtitle and other 
     applicable laws.
       ``(d) Relationship to CHAS and Consolidated Plan.--In 
     establishing requirements for applications under this 
     section, the Secretary shall provide that if an applicant 
     includes in the application information also required under 
     the comprehensive housing affordability strategy for the 
     appropriate jurisdiction under section 105 of the Cranston-
     Gonzalez National Affordable Housing Act or such other plan 
     as the Secretary may require, the requirements under such 
     subsection regarding such information shall be considered to 
     be fulfilled by the submission of the application.

     ``SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

       ``(a) Insular Areas.--In each fiscal year, from any amounts 
     appropriated for such year to carry out this subtitle, the 
     Secretary shall allocate amounts to insular areas in 
     accordance with an allocation formula established by the 
     Secretary.
       ``(b) States and Allocation Units of General Local 
     Government.--
       ``(1) Formula allocation.--
       ``(A) In general.--For each fiscal year, of the amounts 
     that remain after amounts are reserved for insular areas 
     under subsection (a), the Secretary shall allocate assistance 
     according to this paragraph.
       ``(B) Formula.--The Secretary shall allocate amounts under 
     this paragraph using a formula established by the Secretary 
     that allocates amounts for allocation units of general local 
     government and States, and for Indian tribes, in a manner 
     that provides that the percentage of the total amount 
     referred to in subparagraph (A) for any fiscal year that is 
     allocated for any State or allocation unit of general local 
     government, or for Indian tribes, is equal to the percentage 
     of the total amount available for section 106 of the Housing 
     and Community Development Act of 1974 for the prior fiscal 
     year that was allocated for such State or allocation unit of 
     general local government, or for Indian tribes.
       ``(C) Minimum amount.--If, in any fiscal year, allocation 
     under the provisions of subparagraphs (A) and (B) would 
     result in any allocation unit of general local government 
     receiving a grant of less than 0.05 percent of the amounts 
     appropriated to carry out this subtitle for the fiscal year, 
     such amount shall instead be reallocated to the State for use 
     under section 410(b).
       ``(D) 70 percent for units of general local government.--In 
     each fiscal year, the amount allocated under this paragraph 
     for each allocation unit of general local government shall be 
     the amount that results from increasing all of the amounts 
     determined pursuant to the preceding subparagraphs for 
     allocation units of general local government on a pro rata 
     basis so that the sum of such amounts is equal to 70 percent 
     of the remainder of the amount appropriated for the year to 
     carry out this subtitle after amounts are allocated for 
     insular areas under subsection (a).
       ``(E) 30 percent for states.--In each fiscal year, the 
     amount allocated under this paragraph for each State shall be 
     the amount that results from decreasing all of the amounts 
     determined pursuant to the preceding subparagraphs for States 
     on a pro rata basis so that the sum of such amounts is equal 
     to 30 percent of the remainder of the amount appropriated for 
     the year to carry out this subtitle after amounts are 
     allocated for insular areas under subsection (a).
       ``(2) Grant amount for states and allocation units of 
     general local government.--
       ``(A) In general.--The amount allocated for a fiscal year 
     under paragraph (1) for an allocation unit of general local 
     government or a State shall be the maximum amount that the 
     allocation unit or State may receive under this subtitle for 
     the fiscal year.
       ``(B) Reduction.--In any fiscal year, the Secretary may 
     provide a grant under this subtitle for a State or for an 
     allocation unit of general local government in an amount less 
     than the amount allocated under paragraph (1), if the 
     Secretary determines based upon review of the application of 
     the jurisdiction under section 408 or as a result of the 
     annual performance review and audit under section 413, that 
     the jurisdiction has failed to comply fully with the 
     requirements under section 408 or 411 or that such action is 
     otherwise appropriate.
       ``(c) Reallocations.--Any amounts that a State or an 
     allocation unit of general local government is eligible to 
     receive for a fiscal year under subsection (b) that are not 
     received for use in the jurisdiction, as provided by 
     subsections (a) and (b) of section 410, or that become 
     available as a result of actions under section 413(b), shall 
     be added to amounts available for allocation under this 
     section for the succeeding fiscal year.

     ``SEC. 410. ADMINISTRATION OF PROGRAM.

       ``(a) Grants to Allocation Units of General Local 
     Government, Indian Tribes, and Insular Areas.--
       ``(1) In general.--Except as provided in paragraphs (2), 
     (3), and (4), an allocation unit of general local government, 
     Indian tribe, or insular area shall administer grant amounts 
     for any fiscal year received under section 409 by such 
     grantees.
       ``(2) Administration by designees of jurisdiction.--
       ``(A) Authority to elect.--An allocation unit of general 
     local government, Indian tribe, or insular area may elect for 
     any fiscal year to designate a public agency or a private 
     nonprofit organization (or a consortium of such 
     organizations) to administer grant amounts under section 409 
     for the jurisdiction.
       ``(B) Election requirements.--The Secretary shall prescribe 
     the manner and time for making an election under subparagraph 
     (A), and shall establish criteria for the approval of 
     agencies and organizations designated, which shall require 
     such agencies and organizations to demonstrate experience of 
     the entity in providing assistance to homeless individuals 
     and families in the jurisdiction.
       ``(C) Direct provision of assistance.--The Secretary may, 
     at the request of the jurisdiction, provide grant amounts 
     directly to the agency or organization designated under this 
     paragraph.
       ``(3) Administration by designees of secretary.--If an 
     allocation unit of general local government, Indian tribe, or 
     insular area, or (if appropriate) a public agency or private 
     nonprofit organization designated by the jurisdiction under 
     paragraph (2), does not receive a grant under section 409 for 
     any fiscal year because of failure to meet the application 
     requirements of section 408, the Secretary may designate an 
     agency or organization meeting the criteria established under 
     paragraph (2)(B) to receive the grant.
       ``(4) Administration by secretary.--If for any fiscal year 
     the Secretary determines that the grant amounts allocated 
     under section 409 for an allocation unit of general local 
     government, Indian tribe, or insular area will not be used in 
     the jurisdiction as provided by the preceding provisions of 
     this subsection, the Secretary may administer such amounts 
     for the jurisdiction. The Secretary shall prescribe such 
     procedures and requirements as the Secretary considers 
     appropriate for administering grant amounts under this 
     paragraph.
       ``(b) Grants to States.--
       ``(1) In general.--To receive an allocation under section 
     409, each State shall elect--
       ``(A) to administer grant amounts received under section 
     409, as provided in paragraphs (2) and (3); or
       ``(B) to have the Secretary administer such grant amounts 
     for the State, as provided in paragraph (5).
     If a State elects to administer grant amounts under 
     subparagraph (A), the election shall be irrevocable.
       ``(2) State program.--A State administering grant amounts 
     as provided in paragraph (1)(A)--
       ``(A) shall distribute the amounts remaining after use in 
     accordance with subparagraph (B) to State recipients for use 
     under this subtitle;
       ``(B) may use up to 15 percent of the grant amounts 
     received under section 409 to carry out its own homeless 
     assistance program under this subtitle, except that--
       ``(i) such amounts may only be used for eligible activities 
     under chapter 2 for which States are eligible recipients 
     under this subtitle; and
       ``(ii) the Secretary may increase the percentage limitation 
     under this subparagraph in the case of any State homeless 
     assistance program that is limited to providing assistance in 
     areas of the State that are not allocation units of general 
     local government; and
       ``(C) may retain not to exceed 5.0 percent of the amount to 
     be distributed under subparagraph (A) to State recipients to 
     defray the cost of carrying out its responsibilities under 
     this subtitle.

     Unless a State demonstrates to the satisfaction of the 
     Secretary that the needs for assistance for activities under 
     this subtitle in areas of the State that are not allocation 
     units of general local government have been fulfilled, grant 
     amounts received by State may only be used to carry out 
     activities in areas of the State that do not include 
     allocation units of general local government.
       ``(3) Distribution of amounts to state recipients.--
       ``(A) Choice of administration.--A State administering 
     grant amounts as provided in paragraph (1)(A) shall, for each 
     fiscal year, afford each such recipient the options of--
       ``(i) administering the grant amounts on its own behalf;
       ``(ii) designating a public agency or a private nonprofit 
     organization (as provided by subsection (a)(2)) to administer 
     the grant amounts for the jurisdiction; or
       ``(iii) entering into an agreement with the State, in 
     consultation with private nonprofit organizations providing 
     assistance to homeless individuals and families in the 
     jurisdiction, under which the State will administer the grant 
     amounts for the jurisdiction.

     A recipient may choose to exercise such options at such time 
     and in accordance with such criteria as the Secretary may 
     prescribe.
       ``(B) Direct provision of assistance.--A State may, at the 
     request of the State recipient, provide grant amounts 
     directly to the agency or organization designated under 
     subparagraph (A)(ii).
       ``(C) Distribution of amounts.--The State shall distribute 
     amounts to State recipients (or to agencies or organizations 
     designated under subparagraph (A)(ii), as appropriate) on the 
     basis of an application containing such information as the 
     State may prescribe. Each application shall evidence an 
     intent to establish and maintain the provision of 
     comprehensive homeless assistance in the jurisdiction of the 
     recipient, except that the State may waive this requirement 
     with respect to one or more proposed activities, where the 
     State determines that--
       ``(i) the activities are necessary to meet the needs of 
     homeless individuals and families within the jurisdiction; 
     and
       ``(ii) comprehensive homeless assistance is not necessary, 
     due to the nature and extent of homelessness in the 
     jurisdiction.
       ``(D) Preference for certain state recipients.--In 
     selecting State recipients and making awards under 
     subparagraph (C), the State shall give preference to 
     applications that demonstrate higher relative levels of 
     homeless need and fiscal distress.
       ``(4) State or hud administration of grants for individual 
     state recipients.--If in any fiscal year a State distributes 
     grant amounts to a State recipient, but the recipient fails 
     to receive the amounts pursuant to paragraph (3)(A), the 
     Secretary or the State, as the Secretary may provide, may 
     distribute the amounts to private nonprofit organizations in 
     the jurisdiction. If the Secretary distributes the amounts, 
     the Secretary shall deduct the amounts distributed from the 
     grant provided to the State for the fiscal year.
       ``(5) HUD administration of state program.--If a State 
     elects pursuant to paragraph (1)(B) to have the Secretary 
     administer grant amounts for the State received under section 
     409, the Secretary may distribute grant amounts to State 
     recipients for the State, in accordance with requirements and 
     procedures prescribed by the Secretary. The Secretary shall 
     establish criteria for selecting recipients and making awards 
     under this paragraph, which shall include giving preference 
     to applications that demonstrate higher relative levels of 
     homeless need and fiscal distress.

     ``SEC. 411. CITIZEN PARTICIPATION.

       ``(a) In General.--Each grantee who is not a State 
     recipient shall ensure that citizens, and appropriate private 
     nonprofit organizations and other interested groups and 
     entities, participate fully in developing and carrying out 
     the program for providing assistance under this subtitle in 
     the jurisdiction of the recipient. The Secretary shall 
     prescribe such requirements to carry out this section as the 
     Secretary deems appropriate, which shall include requirements 
     applicable to the homeless assistance planning boards 
     referred to in subsection (b) and the citizen participation 
     provisions of subsection (c), and the timing of, and sequence 
     for, carrying out the requirements of such subsections.
       ``(b) Homeless Assistance Planning Boards.--
       ``(1) Establishment.--As a condition of a grantee who is 
     not a State recipient receiving assistance under this 
     subtitle, the chief executive officer of the appropriate unit 
     government in the jurisdiction of the grantee shall establish 
     a homeless assistance planning board under this subsection.
       ``(2) Functions.--Each board under this subsection shall 
     assist the recipient in--
       ``(A) determining whether grant amounts of the grantee 
     should be administered by the grantee, a public agency or 
     private nonprofit organization, or the State or the 
     Secretary, under subsections (a) and (b) of section 410;
       (B) developing the application under section 408;
       (C) overseeing the activities carried out with assistance 
     under this subtitle; and
       (D) evaluating the performance of the grantee (and 
     recipients of the grantee) in carrying out such activities.
       ``(3) Membership.--Each board under this subsection shall 
     consist of members appointed by the chief executive officer 
     referred to in paragraph (1) (subject to recommendations in 
     accordance with paragraph (4)), and shall include--
       ``(A) not less than one member representing homeless 
     individuals and families;
       ``(B) not less than one member representing homeless 
     advocates;
       ``(C) not less than one member representing individuals and 
     entities providing assistance to homeless individuals and 
     families, including agencies of units of general local 
     government providing Federal assistance;
       ``(D) not less than one member representing the business 
     community;
       ``(E) not less than 1 member representing labor;
       ``(F) not less than one member who is a community 
     representative;
       ``(G) not less than one member of the local board 
     established for the jurisdiction for purposes of allocating 
     amounts under the emergency food and shelter program of the 
     Federal Emergency Management Agency;
       ``(H) not less than one member representing the grantee; 
     and
       ``(I) in the case of a grantee that is a State--
       ``(i) one member representing the State agency or 
     instrumentality dealing with mental health; and
       ``(ii) one member representing the State agency or 
     instrumentality dealing with education.
       ``(4) Distribution of membership.--Not less than 50 percent 
     of the members of each board under this subsection (including 
     the members required under subparagraphs (A), (B), (C), and 
     (G) of paragraph (3)) shall be individuals who were 
     recommended for membership by individuals and entities other 
     than a unit of general local government or any agency 
     thereof.
       ``(5) Board review.--
       ``(A) Applicants.--No eligible grantee may submit an 
     application to the Secretary under section 408, and no 
     grantee may submit to the Secretary a performance report 
     under subsection 413(a), unless the board under this 
     subsection for the jurisdiction of the grantee has reviewed, 
     and been provided an opportunity to include any comments of 
     the board in, the application or report.
       ``(B) State recipients.--No State recipient may submit an 
     application under section 410(b)(3) or a performance report 
     to a State, unless the board under this subsection for the 
     jurisdiction has reviewed, and been provided an opportunity 
     to include any comments of the board in, the application or 
     report.
       ``(6) Review by secretary.--A member or members of the 
     board under this subsection for a jurisdiction or other 
     members of the community may request the Secretary to review 
     process for constituting or operating the board to determine 
     whether the process is fair. If the Secretary finds that the 
     process is unfair and submits a written justification to the 
     board within 15 days of the request for review, the Secretary 
     may disapprove the application under section 408 for the 
     jurisdiction or refuse to accept a performance report under 
     section 413(a).
       ``(7) Conflicts of interest.--The Secretary shall prescribe 
     standards governing potential conflicts of interest under 
     which members of boards under this subsection may participate 
     in activities carried out under this subtitle.
       ``(c) Involvement of Citizens and Others.--
       ``(1) In general.--Each recipient shall--
       ``(A) make available to its citizens, public agencies, and 
     other interested parties information concerning the amount of 
     assistance the jurisdiction expects to receive and the range 
     of activities that may be undertaken with the assistance;
       ``(B) publish the proposed application in a manner that, in 
     the determination of the Secretary, affords affected 
     citizens, public agencies, and other interested parties a 
     reasonable opportunity to examine its content and to submit 
     comments on it;
       ``(C) hold one or more public hearings to obtain the views 
     of citizens, public agencies, and other interested parties on 
     the housing needs of the jurisdiction; and
       ``(D) provide citizens, public agencies, and other 
     interested parties with reasonable access to records 
     regarding any uses of any assistance the recipient may have 
     received under this subtitle during the preceding 5 years.
       ``(2) Notice and comment.--Before submitting any 
     performance report under section 413(a) or any substantial 
     amendment to an application under section 408, a recipient 
     shall provide citizens with reasonable notice of, and 
     opportunity to comment on, the performance report or 
     application.
       ``(3) Consideration of comments.--A recipient shall 
     consider any comments or views of citizens in preparing a 
     final application, amendment to an application, or 
     performance report for submission. A summary of such comments 
     or views shall be attached when an application, amendment to 
     an application, or performance report is submitted. The 
     submitted application, amendment, or report shall be made 
     available to the public.
       ``(4) Authority of secretary.--The Secretary shall 
     establish procedures appropriate and practicable for 
     providing a fair hearing and timely resolution of citizen 
     complaints related to applications or performance reports 
     under this subtitle.
       ``(d) Requirements for Citizen Participation for State 
     Recipients and Recipients of Amounts From the Secretary.--
       ``(1) State recipients.--The State may prescribe citizen 
     participation requirements comparable (to the extent 
     appropriate) to the requirements under the preceding 
     provisions of this section for cases in which a State 
     distributes grant amounts to State recipients, as provided in 
     section 410(b)(2).
       ``(2) Recipients from secretary.--The Secretary may 
     prescribe citizen participation requirements comparable (to 
     the extent appropriate) to the requirements under the 
     preceding provisions of this section for cases in which the 
     Secretary--
       ``(A) administers the grant amounts of an allocation unit 
     of general local government, as provided in section 
     410(a)(4); or
       ``(B) distributes grant amounts to recipients, as provided 
     in paragraph (3), (4), or (5) of section 410(b).
       ``(3) Inapplicable laws.--The Federal Advisory Committee 
     Act and section 12 of the Department of Housing and Urban 
     Development Act shall not apply with respect to the actions 
     of the Secretary referred to in paragraph (2). The Secretary 
     shall establish appropriate standards under this paragraph to 
     ensure the integrity of the process for awarding assistance.

     ``SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

       ``(a) Flood Elevation Requirements.--Flood protection 
     standards applicable to housing acquired, rehabilitated, or 
     assisted under this subtitle shall be no more restrictive 
     than the standards applicable to any other program 
     administrated by the Secretary.
       ``(b) Environmental Protection.--The provisions of, and 
     regulations and procedures applicable under, section 104(g) 
     of the Housing and Community Development Act of 1974 shall 
     apply to assistance and projects under this subtitle.
       ``(c) GAO Audits.--Insofar as they relate to funds provided 
     under this subtitle, the financial transactions of grantees 
     and project sponsors may be audited by the General Accounting 
     Office under such rules and regulations as may be prescribed 
     by the Comptroller General of the United States. The 
     representatives of the General Accounting Office shall have 
     access to all books, accounts, records, reports, files and 
     other papers, things, or property belonging to, or in use by 
     such grantees, and project sponsors pertaining to the 
     financial transactions and necessary to facilitate the audit.

     ``SEC. 413. REPORTS, REVIEWS, AND AUDITS.

       ``(a) Grantee Performance Report.--Each grantee shall 
     submit to the Secretary a performance and evaluation report 
     concerning the use of funds made available under this 
     subtitle. The report shall be submitted at such time and 
     contain such information as the Secretary shall prescribe, 
     and shall be made available to the relevant boards referred 
     to in section 411(b) and to citizens, public agencies, and 
     other interested parties in the jurisdiction of the grantee 
     in sufficient time to permit the board and the citizens, 
     public agencies, and other interested parties to comment on 
     the report before submission.
       ``(b) Reviews and Audits.--The Secretary shall, at least on 
     an annual basis, make such reviews and audits as may be 
     necessary or appropriate to determine--
       ``(1) in the case of a grantee (other than a grantee 
     referred to in paragraph (2)), whether the grantee--
       ``(A) has carried out its activities in a timely manner;
       ``(B) has made progress toward establishing and maintaining 
     the comprehensive homeless assistance system in conformity 
     with its application under this subtitle;
       ``(C) has carried out its activities and certifications in 
     accordance with the requirements of this subtitle and other 
     applicable laws; and
       ``(D) has a continuing capacity to carry out its activities 
     in a timely manner; and
       ``(2) in the case of States distributing grant amounts to 
     State recipients, whether the State--
       ``(A) has distributed amounts to State recipients in a 
     timely manner and in conformance with the method of 
     distribution described in its application;
       ``(B) has carried out its activities and certifications in 
     compliance with the requirements of this subtitle and other 
     applicable laws; and
       ``(C) has made such reviews and audits of the State 
     recipients as may be necessary or appropriate to determine 
     whether they have satisfied the applicable performance 
     criteria contained in paragraph (1).

     The Secretary may make appropriate adjustments in the amount 
     of grants in accordance with the Secretary's findings under 
     this subsection. With respect to assistance made available 
     for State recipients, the Secretary may adjust, reduce, or 
     withdraw such assistance, or take other action as appropriate 
     in accordance with the Secretary's reviews and audits under 
     this subsection, except that amounts already properly 
     expended on eligible activities under this subtitle shall not 
     be recaptured or deducted from future assistance to such 
     recipients.

     ``SEC. 414. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

       ``(a) In General.--No person in the United States shall on 
     the ground of race, color, national origin, religion, or sex 
     be excluded from participation in, be denied the benefits of, 
     or be subjected to discrimination under any program or 
     activity funded in whole or in part with funds made available 
     under this subtitle. Any prohibition against discrimination 
     on the basis of age under the Age Discrimination Act of 1975 
     or with respect to an otherwise qualified handicapped 
     individual, as provided in section 504 of the Rehabilitation 
     Act of 1973, shall also apply to any such program or 
     activity.
       ``(b) Limitations.--
       ``(1) Indian tribes.--No grant may be made under this 
     subtitle to an Indian tribe unless the applicant provides 
     satisfactory assurances that its program will be conducted 
     and administered in conformity with title II of Public Law 
     90-284. The Secretary may waive, in connection with grants to 
     Indian tribes, the provisions of subsection (a).
       ``(2) Hawaiian home lands.--The provisions of this subtitle 
     relating to discrimination on the basis of race shall not 
     apply to the provision of assistance under this subtitle to 
     the Hawaiian Home Lands.

     ``SEC. 415. CONSULTATION.

       ``In carrying out the provisions of this subtitle, 
     including the issuance of regulations, the Secretary shall 
     consult with other Federal agencies administering programs 
     affecting homeless individuals and families through the 
     Interagency Council on the Homeless established under title 
     II.

     ``SEC. 416. RECORDS, REPORTS, AND AUDITS.

       ``(a) Keeping of Records.--Any recipient (including a State 
     distributing grant amounts to State recipients as provided in 
     section 410(b)(2)) shall keep such records as may be 
     reasonably necessary--
       ``(1) to disclose the amounts and the disposition of the 
     grant amounts; and
       ``(2) to ensure compliance with the requirements of this 
     subtitle.
       ``(b) Access to Documents by Secretary.--The Secretary 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records of any recipient 
     specified in subsection (a) that are pertinent to grant 
     amounts received in connection with, and the requirements of, 
     this subtitle.
       ``(c) Access to Documents by Comptroller General.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of any recipient 
     specified in subsection (a) that are pertinent to grant 
     amounts received in connection with, and the requirements of, 
     this subtitle.

     ``SEC. 417. REPORTS TO CONGRESS.

       ``The Secretary shall submit a report to the Congress 
     annually, summarizing the activities carried out under this 
     subtitle and setting forth the findings, conclusions, and 
     recommendations of the Secretary as a result of the 
     activities. The report shall be submitted not later than 4 
     months after the end of each fiscal year (except that, in the 
     case of fiscal year 1995, the report shall be submitted not 
     later than 6 months after the end of the fiscal year).

                    ``CHAPTER 2--ELIGIBLE ACTIVITIES

     ``SEC. 431. HOMELESSNESS PREVENTION.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle for activities designed to help 
     persons and families described in subsection (b) avoid 
     becoming homeless, which shall include assistance for making 
     mortgage payments, rental payments, and utility payments and 
     any activities other than those found by the Secretary to be 
     inconsistent with the purposes of this Act.
       ``(b) Requirements for Assistance.--Assistance may be 
     provided under this section only to very low-income persons 
     and families who have received eviction (or mortgage 
     delinquency or foreclosure) notices or notices of termination 
     of utility services and who--
       ``(1) are unable to make the required payments due to a 
     sudden reduction in income;
       ``(2) need such assistance to avoid the eviction or 
     termination of services; and
       ``(3) have a reasonable prospect of being able to resume 
     payments within a reasonable period of time.

     ``SEC. 432. EMERGENCY SHELTER.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle for--
       ``(1) the renovation, major rehabilitation, or conversion 
     of a building or buildings to be used as emergency shelters;
       ``(2) the provision of supportive services, if such 
     services do not supplant any services provided by the local 
     government during any part of the 12-month period ending on 
     the date of the commencement of the operation of the 
     emergency shelter; and
       ``(3) maintenance, operation, insurance, utilities, and 
     furnishings for emergency shelters.
       ``(b) Definition.--A project shall be considered emergency 
     shelter for purposes of this section if the project is 
     designed to provide overnight sleeping accommodations for 
     homeless persons. An emergency shelter may include 
     appropriate eating and cooking accommodations.
       ``(c) Program Requirements.--A recipient may use grant 
     amounts under this subtitle for an emergency shelter project 
     only if the project sponsor has agreed that it will--
       ``(1) in the case of assistance involving major 
     rehabilitation or conversion of a building, maintain the 
     building as a shelter for homeless individuals and families 
     for not less than a 10-year period unless, within such 10-
     year period, the need for maintaining the building as a full-
     time shelter ceases to exist and the building is used for the 
     remainder of such period to carry out other eligible 
     activities under this subtitle;
       ``(2) in the case of assistance involving rehabilitation 
     (other than major rehabilitation or conversion of a 
     building), maintain the building as a shelter for homeless 
     individuals and families for not less than a 3-year period; 
     or
       ``(3) in the case of assistance involving only activities 
     described in paragraphs (2) and (3) of subsection (a), 
     provide services or shelter to homeless individuals and 
     families at the original site or structure or other sites or 
     structures serving the same general population for the period 
     during which such assistance is provided;
       ``(4) comply with the standards of habitability prescribed 
     under subsection (d) by the Secretary and (if applicable) the 
     State or unit of general local government; and
       ``(5) assist homeless persons in obtaining--
       ``(A) appropriate supportive service, including permanent 
     housing, medical and mental health treatment, counseling, 
     supervision, and other services essential for achieving 
     independent living; and
       ``(B) other Federal, State, local, and private assistance 
     available for homeless persons.
       ``(d) Minimum Standards of Habitability.--The Secretary 
     shall prescribe such minimum standards of habitability as the 
     Secretary determines to be appropriate to ensure that 
     emergency shelters assisted under this section are 
     environments that provide appropriate privacy, safety, and 
     sanitary and other health-related conditions for homeless 
     persons and families. Grantees may establish standards of 
     habitability in addition to those prescribed by the 
     Secretary.

     ``SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle to provide assistance to a 
     project sponsor of supportive housing in the following 
     manners:
       ``(1) Acquisition and rehabilitation.--Assistance may be 
     provided in the form of an advance in an amount not exceeding 
     cost of acquisition, substantial rehabilitation, or 
     acquisition and rehabilitation of an existing structure for 
     use as supportive housing. The repayment of any outstanding 
     debt owed on a loan made to purchase an existing structure 
     shall be considered to be a cost of acquisition eligible for 
     an advance under this paragraph if the structure was not used 
     as supportive housing before the receipt of assistance.
       ``(2) Moderate rehabilitation.--Assistance may be provided 
     in the form of a grant for moderate rehabilitation of an 
     existing structure for use as supportive housing. Assistance 
     under this paragraph shall not preclude assistance under 
     paragraph (1).
       ``(3) Operating costs.--Assistance may be provided in the 
     form of annual payments for operating costs of supportive 
     housing (including supportive housing that is newly 
     constructed with assistance provided from sources other than 
     this subtitle) in an amount not exceeding 75 percent of the 
     annual operating costs of such housing.
       ``(4) Technical assistance.--Technical assistance may be 
     provided in--
       ``(A) establishing supportive housing in an existing 
     structure;
       ``(B) operating supportive housing in existing structures 
     and in structures that are newly constructed with assistance 
     provided from sources other than this subtitle; and
       ``(C) providing supportive services to the residents of 
     supportive housing (including supportive housing that is 
     newly constructed with assistance provided from sources other 
     than this subtitle).
       ``(5) Employment assistance program.--Assistance may be 
     provided in the form of a grant for establishing and 
     operating an employment assistance program for the residents 
     of supportive housing, which shall include--
       ``(A) employment of residents in the operation and 
     maintenance of the housing; and
       ``(B) the payment of the transportation costs of residents 
     to places of employment.
       ``(6) Supportive services.--Assistance may be provided in 
     the form of a grant for costs of supportive services provided 
     to homeless individuals. Any project sponsor, including 
     program recipients under title IV of this Act before the date 
     of the enactment of the Housing and Community Development Act 
     of 1994, may reapply for such assistance or for the renewal 
     of such assistance to continue services funded under prior 
     grants or to provide other services.
       ``(7) Child care services.--Assistance may be provided in 
     the form of a grant to establish and operate a child care 
     services program for homeless families, which shall--
       ``(A) include--
       ``(i) establishing, licensing, and operating an on-site 
     child care facility for the residents of transitional 
     housing;
       ``(ii) making contributions for the child care costs of 
     residents of transitional housing to existing community child 
     care programs and facilities; and
       ``(iii) counseling designed to inform the residents of 
     transitional housing of public and private child care 
     services for which they are eligible; and
       ``(B) provide only child care services that comply with any 
     applicable State and local laws and regulations.
     A grant under this paragraph for any child care services 
     program may not exceed the amount equal to 75 percent of the 
     cost of operating the program for a period not exceeding 5 
     years.
       ``(b) Supportive Housing.--Housing for homeless individuals 
     shall be considered to be supportive housing for purposes of 
     this section if--
       ``(1) the housing is safe and sanitary and meets any 
     applicable State and local housing codes and licensing 
     requirements in the jurisdiction in which the housing is 
     located;
       ``(2) the housing is--
       ``(A) transitional housing;
       ``(B) permanent housing for homeless persons with 
     disabilities; or
       ``(C) a particularly innovative project for, or alternative 
     methods of, meeting the immediate and long-term needs of 
     homeless individuals and families (or is part of such a 
     project); and
       ``(3) supportive services are provided in connection with 
     the housing to address the special needs of homeless 
     individuals intended to be served by the housing.
       ``(c) Transitional Housing.--For purposes of this section, 
     the term `transitional housing' means housing, the purpose of 
     which is to facilitate the movement of homeless individuals 
     and families to permanent housing within 24 months or such 
     longer period as the Secretary determines necessary.
       ``(d) Permanent Housing for Homeless Persons With 
     Disabilities.--For purposes of this section, the term 
     `permanent housing for homeless persons with disabilities' 
     means community-based housing for homeless persons with 
     disabilities that--
       ``(1) is a home designed solely for housing homeless 
     persons with disabilities or dwelling units in a multifamily 
     housing project, condominium project, or cooperative project;
       ``(2) in the case of a home, is located on a site that does 
     not contain another home used for the same purposes and that 
     is not contiguous to another site containing a home used for 
     the same purposes; and
       ``(3) provides long-term housing and supportive services 
     for not more than--
       ``(A) 8 such persons in a single structure or contiguous 
     structures;
       ``(B) 16 such persons, but only if not more than 20 percent 
     of the units in a structure are designated for such persons; 
     or
       ``(C) more than 16 persons if the applicant demonstrates 
     that local market conditions dictate the development of a 
     large project and such development will achieve the 
     neighborhood integration objectives of the program within the 
     context of the affected community.
       ``(e) Program Requirements.--
       ``(1) Required agreements.--A recipient may use grant 
     amounts under this subtitle for a supportive housing project 
     under this section only if the project sponsor for the 
     project has agreed--
       ``(A) to operate the proposed project as supportive housing 
     for not less than 10 years;
       ``(B) to conduct an ongoing assessment of the supportive 
     services required by the residents of the project;
       ``(C) to provide such residential supervision as the 
     Secretary determines is necessary to facilitate the adequate 
     provision of supportive services to the residents of the 
     project; and
       ``(D) to comply with such other terms and conditions as the 
     Secretary or recipient may establish for purposes of carrying 
     out this program in an effective and efficient manner.
       ``(2) Occupant charge.--Each homeless individual or family 
     residing in a project assisted under this section that 
     provides supportive housing may be required to pay an 
     occupancy charge in an amount determined by the project 
     sponsor, which may not exceed the amount determined under 
     section 3(a) of the United States Housing Act of 1937. 
     Occupancy charges paid may be reserved, in whole or in part, 
     to assist residents in moving to permanent housing.
       ``(f) Single Room Occupancy Dwellings.--A project assisted 
     under this section may provide supportive housing or 
     supportive services in dwelling units that do not contain 
     bathrooms or kitchen facilities and are appropriate for use 
     as supportive housing or in projects containing some or all 
     such dwelling units.

     ``SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle for--
       ``(1) the construction of a structure for use in providing 
     a safe haven or the acquisition, rehabilitation, or 
     acquisition and rehabilitation of an existing structure for 
     use in providing a safe haven;
       ``(2) the leasing of an existing structure for use in 
     providing a safe haven;
       ``(3) operating costs of a safe haven;
       ``(4) costs of administering a safe haven program, in an 
     amount not exceeding 10 percent of the amounts made available 
     for activities under paragraphs (1) through (3);
       ``(5) conducting outreach activities designed to inform 
     eligible persons about and attract them to a safe haven 
     program;
       ``(6) the provision of low-demand services and referrals 
     for residents of a safe haven; and
       ``(7) conducting other activities that further the purposes 
     of this section, including the modification of an existing 
     facility to use a portion of a facility to provide a safe 
     haven.
       ``(b) Definition.--For purposes of this section, the term 
     `safe haven' means housing for homeless persons who, at the 
     time, are unwilling or unable to participate in mental health 
     treatment programs or to receive other supportive services. 
     Such a facility may provide--
       ``(1) 24-hour residence for eligible persons who may reside 
     for an unspecified duration;
       ``(2) private or semiprivate accommodations;
       ``(3) common use of kitchen facilities, dining rooms, and 
     bathrooms;
       ``(4) supportive services to eligible persons who are not 
     residents on a drop-in basis; and
       ``(5) overnight occupancy limited to no more than 25 
     persons.
       ``(c) Eligibility for SSI and Medicaid.--
       ``(1) Supplemental security income.--All provisions of the 
     supplemental security income program under title XVI of the 
     Social Security Act and of State programs in supplementation 
     thereof shall apply to participants in the safe havens 
     demonstration program under this subtitle, except that no 
     individual living in a safe haven shall--
       ``(A) be considered an inmate of a public institution (as 
     provided in section 1611(e)(1)(A) of such Act); or
       ``(B) have benefits under such title XVI reduced or 
     terminated because of the receipt of support and maintenance 
     (as provided in section 1612(a)(2)(A) of such Act), to the 
     extent such support and maintenance is received as a result 
     of participation in the safe havens demonstration program.
       ``(2) Medicaid.--A safe haven shall not be considered a 
     hospital, nursing facility, institution for mental disease as 
     defined under section 1905(i) of the Social Security Act, or 
     any other inpatient facility, for purposes of the programs 
     under title XIX of such Act, and individuals shall not be 
     denied eligibility for Medicaid because of residency in such 
     residence.

     ``SEC. 435. SHELTER PLUS CARE.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle to provide shelter plus care for 
     homeless persons with disabilities (primarily persons who 
     have severe and persistent mental or emotional impairments 
     that seriously limit a person's ability to live 
     independently, have chronic programs with alcohol, drugs, or 
     both, or have acquired immunodeficiency syndrome and related 
     diseases) and the families of such persons.
       ``(b) Definition.--For purposes of this section, the term 
     `shelter plus care' means rental housing assistance, in 
     connection with supportive services funded from sources other 
     than under this section. Such rental housing assistance may 
     be tenant-based, project-based, or sponsor-based.

     ``SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EXPENSES.

       ``(a) Availability of Grant Amounts.--A recipient may use 
     grant amounts under this subtitle for the following expenses:
       ``(1) Administrative expenses.--During--
       ``(A) the first year in which a recipient receives grant 
     amounts under this subtitle, for administrative expenses in 
     connection with planning the development of, and 
     establishing, its program under this subtitle;
       ``(B) subsequent years, to defray the cost of administering 
     the program; and
       ``(C) any year in which a recipient receives grant amounts 
     under this subtitle, to defray the cost of establishing and 
     operating the board referred to in section 411(b).
     Not more than 5 percent of any amounts provided to a 
     recipient under this subtitle for a fiscal year may be used 
     for activities under this paragraph.
       ``(2) Capacity building for nonprofit organizations.--For 
     building the capacity of private nonprofit organizations to 
     participate in the comprehensive homeless assistance system 
     of the recipient, except that not more than 2 percent of any 
     amounts provided to a recipient under this subtitle for a 
     fiscal year may be used for activities under this paragraph.
       ``(b) Provision of Administrative Expenses for Certain 
     Entities.--
       ``(1) Provision of amounts.--Any recipient under paragraph 
     (2) shall make available, to defray the administrative 
     expenses of the designee or the State, not more than 5 
     percent from amounts eligible for this purpose under 
     subsection (a)(1).
       ``(2) Recipients covered.--The recipients under this 
     paragraph shall be--
       ``(A) any allocation unit of general local government, 
     Indian Tribe, or insular area, that designates a public 
     agency or a private nonprofit organization under section 
     410(a)(2);
       ``(B) any State recipient that designates a public agency 
     or a private nonprofit organization under section 
     410(b)(3)(A)(ii); and
       ``(C) any State recipient that enters into an agreement 
     under section 410(b)(3)(A)(iii) with a State.

     ``SEC. 437. OTHER APPROVED ACTIVITIES.

       ``The Secretary, in cooperation with grantees, recipients, 
     and other appropriate parties, shall develop additional 
     activities to carry out the purposes of this subtitle. A 
     recipient may use grants amounts under this subtitle to carry 
     out any such activities developed and approved by the 
     Secretary.
   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                              Homeless''.

     SEC. 812. REGULATIONS.

       Not later than 60 days after the date of enactment of this 
     Act, the Secretary of Housing and Urban Development shall by 
     notice establish any requirements necessary to carry out the 
     provisions contained in the amendments made by this chapter. 
     Based on such notice, the Secretary shall issue regulations 
     to carry out such provisions not later than 12 months after 
     the date of the enactment of this Act.

     SEC. 813. TRANSITION PROVISIONS.

       (a) In General.--Notwithstanding the provisions of subtitle 
     A of title IV of the Stewart B. McKinney Homeless Assistance 
     Act (as amended by this chapter), during fiscal year 1995, 
     the Secretary of Housing and Urban Development shall allocate 
     homeless assistance made available under title IV of the 
     Stewart B. McKinney Homeless Assistance Act in accordance 
     with the regulations for such title in effect immediately 
     before the enactment of this Act. Of any amounts appropriated 
     to carry out section 2 of the HUD Demonstration Act of 1993 
     in fiscal year 1995, the Secretary may use not more than 10 
     percent for providing technical assistance to assist 
     recipients under subtitle A of title IV of the Stewart B. 
     McKinney Homeless Assistance Act (as amended by this chapter) 
     to establish a program for providing homeless assistance in 
     accordance with the provisions of such subtitle.
       (b) Report on Single Room Occupancy Assistance.--Not later 
     than July 1, 1995, the Secretary shall submit a report to the 
     Congress evaluating the effectiveness of combining the 
     programs for assistance for single room occupancy dwellings 
     under sections 451 and 452 of the Stewart B. McKinney 
     Homeless Assistance Act (as so redesignated and amended by 
     this Act) into the program for assistance under subtitle A of 
     title IV of such Act and, if effective, describing how to 
     provide such assistance under the program under such subtitle 
     A.

  CHAPTER 2--OTHER HOUSING ASSISTANCE PROGRAMS FOR THE HOMELESS UNDER 
                              MCKINNEY ACT

     SEC. 821. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY 
                   DWELLINGS.

       (a) Authorization of Appropriations.--Section 451(a) of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11401(a)), as so redesignated by section 811(3) of this Act, 
     is amended to read as follows:
       ``(a) Increase in Budget Authority.--The budget authority 
     available under section 5(c) of the United States Housing Act 
     of 1937 for assistance under section 8(e)(2) of such Act (as 
     in effect immediately before October 1, 1991) is authorized 
     to be increased by $200,000,000 on or after October 1, 1994, 
     and by $206,000,000 on or after October 1, 1995.''.
       (b) Program Changes.--Section 451 of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11401(a)), as so 
     redesignated by section 811(3) of this Act, is amended--
       (1) in the second sentence of subsection (c), in the matter 
     preceding paragraph (1), by striking ``containing'' and 
     inserting the following: ``for the provision of assistance 
     under this section that is specifically provided for in the 
     comprehensive homeless assistance described in the 
     application under section 408 of the relevant eligible 
     grantee and that contains''; and
       (2) in subsection (j)(1), by inserting ``recipient under 
     subtitle A,'' after ``authority,''.

     SEC. 822. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE 
                   ROOM OCCUPANCY DWELLINGS.

       Title IV of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.) is amended by inserting after 
     section 451, as so redesignated by section 811(3) of this 
     Act, the following new section:

     ``SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE 
                   ROOM OCCUPANCY DWELLINGS.

       ``(a) Purpose.--The purpose of the program under this 
     section is to provide assistance for the moderate 
     rehabilitation of single room occupancy housing to be made 
     available for rental, in connection with supportive services 
     funded from sources other than this section, to homeless 
     persons with disabilities (primarily persons who are 
     seriously mentally ill, have chronic problems with alcohol, 
     drugs, or both, or have acquired immunodeficiency syndrome 
     and related diseases) and the families of such persons.
       ``(b) Moderate Rehabilitation Assistance.--The Secretary 
     may use amounts made available to carry out this section for 
     moderate rehabilitation of single room occupancy housing 
     described in section 8(l) of the United States Housing Act of 
     1937 for occupancy by eligible persons in accordance with 
     this section. Such amounts may be used in connection with the 
     moderate rehabilitation of efficiency units if the building 
     owner agrees to pay the additional cost of rehabilitating and 
     operating the efficiency units.
       ``(c) Funding Limitations.--
       ``(1) Targeted populations.--To the maximum extent 
     practicable, the Secretary shall reserve not less than 50 
     percent of all amounts made available to carry out this 
     section for homeless individuals who are seriously mentally 
     ill or have chronic problems with alcohol, drugs, or both.
       ``(2) Geographical limitation.--Of the assistance made 
     available under this section for any fiscal year, not more 
     than 10 percent may be used for programs located within any 
     one unit of general local government.
       ``(d) Supportive Services Requirements.--
       ``(1) Requirement of matching amounts.--Each recipient of 
     assistance under this section shall supplement the assistance 
     provided under this section with an equal amount of funds for 
     supportive services from sources other than this section. 
     Each recipient shall certify to the Secretary its compliance 
     with this paragraph, and shall include with the certification 
     a description of the sources and amounts of such supplemental 
     funds.
       ``(2) Determination of matching amounts.--In calculating 
     the amount of supplemental funds provided under this section, 
     a recipient may include the value of any lease on a building, 
     any salary paid to staff to carry out the program of the 
     recipient, and the value of the time and services contributed 
     by volunteers to carry out the program of the recipient at a 
     rate determined by the Secretary.
       ``(3) Recapture.--If the supportive services and funding 
     for the supportive services required by this subsection are 
     not provided by a recipient, the Secretary may recapture any 
     unexpended housing assistance provided under this section to 
     the recipient.
       ``(e) Contract Requirements.--Each contract for annual 
     contributions entered into by the Secretary with a public 
     housing agency to obligate budget authority made available to 
     carry out this section shall--
       ``(1) commit the Secretary to make the authority available 
     to the public housing agency for an aggregate period of 10 
     years, and require that any amendments increasing the 
     authority shall be available for the remainder of such 10-
     year period;
       ``(2) provide the Secretary with the option to renew the 
     contract for an additional period of 10 years, subject to the 
     availability of authority;
       ``(3) provide that, notwithstanding any other provision of 
     law, first priority for occupancy of housing rehabilitated 
     under this section shall be given to homeless persons; and
       ``(4) require installation in the housing assisted of a 
     sprinkler system that protects all major spaces, hard-wired 
     smoke detectors, and any other fire safety improvements as 
     may be required by State or local law.
     For purposes of this subsection, the term `major spaces' 
     means hallways, large common areas, and other areas specified 
     in local fire, building, or safety codes.
       ``(f) Applications.--
       ``(1) In general.--An application for rental housing 
     assistance under this section shall be submitted by an 
     applicant in such form and in accordance with such procedures 
     as the Secretary shall establish.
       ``(2) Minimum contents.--The Secretary shall require that 
     an application identify the need for the assistance in the 
     community to be served and shall contain at a minimum--
       ``(A) a request for housing assistance under this section 
     specifying the number of units requested and the amount of 
     necessary budget authority;
       ``(B) a description of the size and characteristics of the 
     population of eligible persons;
       ``(C) an identification of the need for the program in the 
     community to be served;
       ``(D) the identity of the proposed service provider or 
     providers (which may be, or include, the applicant) and a 
     statement of the qualifications of the provider or providers;
       ``(E) a description of the supportive services that the 
     applicant proposes to assure will be available for eligible 
     persons;
       ``(F) a description of the resources that are expected to 
     be made available to provide the supportive services required 
     by subsection (d);
       ``(G) a description of the mechanisms for developing a 
     housing and supportive services plan for each person and for 
     monitoring each person's progress in meeting that plan;
       ``(H) reasonable assurances satisfactory to the Secretary 
     that the supportive services will be provided for the full 
     term of the housing assistance under this section and a 
     certification from the applicant that it will fund the 
     supportive services itself if the planned resources do not 
     become available for any reason;
       ``(I) a certification by the public official responsible 
     for submitting the comprehensive housing affordability 
     strategy under section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act that the proposed activities are 
     consistent with the approved housing strategy of the unit of 
     general local government within which housing assistance 
     under this section will be provided; and
       ``(J) identification of the specific structures that the 
     recipient is proposing for assistance.
       ``(g) Selection Criteria.--The Secretary shall establish 
     selection criteria for a national competition for assistance 
     under this section which shall include--
       ``(1) the ability of the applicant to develop and operate 
     the proposed assisted housing and supportive services 
     program, taking into account the quality of any ongoing 
     program of the applicant;
       ``(2) geographic diversity among the projects to be 
     assisted;
       ``(3) the need for a program providing housing assistance 
     and supportive services for eligible persons in the area to 
     be served;
       ``(4) the quality of the proposed program for providing 
     supportive services and housing assistance;
       ``(5) the extent to which the proposed funding for the 
     supportive services is or will be available;
       ``(6) the extent to which the project would meet the needs 
     of the homeless persons proposed to be served by the program;
       ``(7) the extent to which the program integrates program 
     recipients into the community served by the program;
       ``(8) the cost-effectiveness of the proposed program; and
       ``(9) such other factors as the Secretary specifies in 
     regulations to be appropriate for purposes of carrying out 
     the program established by this section in an effective and 
     efficient manner.
       ``(h) Participation of Homeless Individuals.--The Secretary 
     shall, by regulation, require each recipient of assistance 
     under this section to provide for the consultation and 
     participation of not less than one homeless individual or 
     former homeless individual on the board of directors or other 
     equivalent policymaking entity of the recipient, to the 
     extent that such entity considers and makes policies and 
     decisions regarding any housing assisted under this section 
     or services for such housing. The Secretary may grant waivers 
     to recipients unable to meet the requirement under the 
     preceding sentence if the recipient agrees to otherwise 
     consult with homeless or formerly homeless individuals in 
     considering and making such policies and decisions.
       ``(i) Required Agreements.--The Secretary may not approve 
     assistance under this section for an applicant unless the 
     applicant agrees--
       ``(1) to operate the proposed program in accordance with 
     the provisions of this section;
       ``(2) to conduct an ongoing assessment of the housing 
     assistance and supportive services required by the 
     participants in the program;
       ``(3) to ensure the adequate provision of supportive 
     services to the participants in the program;
       ``(4) to comply with such other terms and conditions as the 
     Secretary may establish for purposes of carrying out the 
     program in an effective and efficient manner; and
       ``(5) to the maximum extent practicable, to involve 
     homeless individuals and families, through employment 
     volunteer services, or otherwise, in constructing or 
     rehabilitating housing assisted under this section and in 
     providing services required under this section.
       ``(j) Housing Standards and Rent Reasonableness.--
       ``(1) Standards required.--The Secretary shall require 
     that--
       ``(A) before any assistance may be provided to or on behalf 
     of a person, each unit assisted under this section shall be 
     inspected by the applicant directly or by another entity, 
     including the local public housing agency, to determine that 
     the unit meets the housing quality standards under section 8 
     of the United States Housing Act of 1937 and that the 
     occupancy charge for the dwelling unit is reasonable; and
       ``(B) the recipient shall make at least annual inspections 
     of each unit assisted under this section during the term of 
     the contract for such assistance.
       ``(2) Prohibition.--No assistance may be provided under 
     this section for a dwelling unit (A) for which the occupancy 
     charge is not reasonable, or (B) which fails to meet the 
     housing standards, unless the owner promptly corrects the 
     deficiency and the recipient verifies the correction.
       ``(k) Tenant Rent.--Each tenant of a dwelling unit assisted 
     under this section shall pay as rent an amount determined in 
     accordance with the provisions of section 3(a)(1) of the 
     United States Housing Act of 1937.
       ``(l) Administrative Fees.--From amounts made available to 
     carry out this section, the Secretary shall make amounts 
     available to pay the entity administering the housing 
     assistance an administrative fee in an amount determined 
     appropriate by the Secretary for the costs of administering 
     the housing assistance.
       ``(m) Occupancy.--
       ``(1) Occupancy agreement.--The occupancy agreement between 
     a tenant and an owner of a dwelling unit assisted under this 
     section shall be for at least one month.
       ``(2) Vacancy payments.--If an eligible person vacates a 
     dwelling unit assisted under this section before the 
     expiration of the occupancy agreement, no assistance payment 
     may be made with respect to the unit after the month that 
     follows the month during which the unit was vacated, unless 
     it is occupied by another eligible person.
       ``(n) Termination of Assistance.--
       ``(1) Authority.--If an eligible individual who receives 
     assistance under this section violates program requirements, 
     the recipient may terminate assistance in accordance with the 
     process established pursuant to paragraph (2).
       ``(2) Procedure.--In terminating assistance under this 
     paragraph, the recipient shall provide a formal process that 
     recognizes the rights of individuals receiving such 
     assistance to due process of law.
       ``(o) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) The term `acquired immunodeficiency syndrome and 
     related diseases' has the meaning given such term in section 
     853 of the Cranston-Gonzalez National Affordable Housing Act.
       ``(2) The term `applicant' means a State, unit of general 
     local government, Indian tribe, or public housing agency.
       ``(3) The term `eligible person' means a homeless person 
     with disabilities (primarily persons who are seriously 
     mentally ill, have chronic problems with alcohol, drugs, or 
     both, or have acquired immunodeficiency syndrome and related 
     diseases) and the family of such a person.
       ``(4) The term `Indian tribe' has the meaning given such 
     term in section 102 of the Housing and Community Development 
     Act of 1974.
       ``(5) The term `nonprofit organization' has the meaning 
     given such term by section 104 of the Cranston-Gonzalez 
     National Affordable Housing Act, and includes community 
     mental health centers established as public nonprofit 
     organizations.
       ``(6) The term `person with disabilities' has the meaning 
     given such term in section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act.
       ``(7) The term `public housing agency' has the meaning 
     given such term in section 3(b) of the United States Housing 
     Act of 1937.
       ``(8) The term `recipient' means an applicant approved for 
     participation in the program to provide assistance under this 
     section.
       ``(9) The term `Secretary' means the Secretary of Housing 
     and Urban Development.
       ``(10) The term `seriously mentally ill' means having a 
     severe and persistent mental or emotional impairment that 
     seriously limits a person's ability to live independently.
       ``(11) The term `State' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Commonwealth of the Northern Mariana Islands, the Virgin 
     Islands, Guam, American Samoa, and any other territory or 
     possession of the United States.
       ``(12) The term `supportive services' means assistance that 
     the Secretary determines (A) addresses the special needs of 
     eligible persons; and (B) provides appropriate services or 
     assists such persons in obtaining appropriate services, 
     including health care, mental health services, substance and 
     alcohol abuse services, child care services, case management 
     services, counseling, supervision, education, job training, 
     and other services essential for achieving and maintaining 
     independent living. Inpatient acute hospital care shall not 
     qualify as a supportive service.
       ``(13) The term `unit of general local government' has the 
     meaning given such term in section 102 of the Housing and 
     Community Development Act of 1974.
       ``(p) Authorization of Appropriations.--For purposes of 
     providing assistance under this section, there are authorized 
     to be appropriated $75,000,000 for fiscal year 1995 and 
     $75,000,000 for fiscal year 1996.''.

     SEC. 823. RURAL HOMELESSNESS GRANT PROGRAM.

       (a) Authorization of Appropriations.--Section 453(l)(1) of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11408(l)(1)), as so redesignated by section 811(3) of this 
     Act, is amended to read as follows:
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $32,197,800 for fiscal year 1995 
     and $33,163,734 for fiscal year 1996.''.
       (b) Transfer to Department of Agriculture.--Section 453 of 
     the Stewart B. McKinney Homeless Assistance Act, as so 
     redesignated by section 811(3) of this Act, is amended--
       (1) in subsection (a), by striking ``Secretary of Housing 
     and Urban Development'' and inserting ``Secretary of 
     Agriculture''; and
       (2) in subsection (k), by striking paragraph (3) and 
     inserting the following new paragraph:
       ``(3) The term `Secretary' means the Secretary of 
     Agriculture.''.

     SEC. 824. CLERICAL AMENDMENT.

       The table of contents in section 101(b) of the Stewart B. 
     McKinney Homeless Assistance Act is amended by striking the 
     items relating to title IV and inserting the following new 
     items:

                     ``TITLE IV--HOUSING ASSISTANCE

                  ``Subtitle A--Flexible Grant Program

                    ``Chapter 1--General Provisions

``Sec. 401. Purposes.
``Sec. 402. Authorization of appropriations.
``Sec. 403. Definitions.
``Sec. 404. Provision of grants.
``Sec. 405. Comprehensive homeless assistance.
``Sec. 406. Matching requirements.
``Sec. 407. Responsibilities of grantees and project sponsors.
``Sec. 408. Application.
``Sec. 409. Allocation and distribution of funds.
``Sec. 410. Administration of program.
``Sec. 411. Citizen participation.
``Sec. 412. Applicability of other provisions.
``Sec. 413. Reports, reviews, and audits.
``Sec. 414. Nondiscrimination in programs and activities.
``Sec. 415. Consultation.
``Sec. 416. Records, reports, and audits.
``Sec. 417. Reports to Congress.

                    ``Chapter 2--Eligible Activities

``Sec. 431. Homelessness prevention.
``Sec. 432. Emergency shelter.
``Sec. 433. Supportive housing for the homeless.
``Sec. 434. Safe havens for homeless individuals.
``Sec. 435. Shelter plus care.
``Sec. 436. Administrative and capacity-building expenses.
``Sec. 437. Other approved activities.

   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                                Homeless

``Sec. 451. Section 8 assistance for single room occupancy dwellings.
``Sec. 452. Section 8 assistance for shelter plus care single room 
              occupancy dwellings.
``Sec. 453. Rural homelessness grant program.
``Sec. 454. Use of FMHA inventory for transitional housing for homeless 
              persons and for turnkey housing.''.

          CHAPTER 3--MISCELLANEOUS HOMELESS HOUSING PROVISIONS

     SEC. 831. INNOVATIVE HOMELESS PROGRAM.

       (a) Authorization of Appropriations.--Section 2(f) of the 
     HUD Demonstration Act of 1993 is amended to read as follows:
       ``(f) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $100,000,000 for fiscal year 1995.
       ``(2) Use of amounts.--Any amounts appropriated under 
     paragraph (1) may be used only to carry out the comprehensive 
     homeless initiative under subsection (c).''.
       (b) Extension of Program.--Section 2(g) of the HUD 
     Demonstration Act of 1993 (42 U.S.C. 11301 note) is amended 
     by striking ``1994'' and inserting ``1995''.

     SEC. 832. FHA SINGLE FAMILY PROPERTY DISPOSITION.

       Section 1407 of the Housing and Community Development Act 
     of 1992 (Public Law 102-550; 106 Stat. 4034) is amended by 
     striking subsections (a) and (b) and inserting the following 
     new subsections:
       ``(a) Immediate Availability.--In carrying out the program 
     for disposition of single family properties acquired by the 
     Department of Housing and Urban Development for use by the 
     homeless under subpart E of part 291 of title 24, Code of 
     Federal Regulations, the Secretary of Housing and Urban 
     Development shall make any eligible property available for 
     lease under such program without listing and making such 
     property generally available for sale for any intervening 
     period.
       ``(b) Discount.--Any property made available for sale under 
     the program referred to in subsection (a) shall be made 
     available at a price equal to the fair market value of the 
     property less a 20 percent discount.''.
            Subtitle B--Interagency Council on the Homeless

     SEC. 841. AUTHORIZATION OF APPROPRIATIONS.

       Section 208 of the Stewart B. McKinney Homeless Assistance 
     Act (42 U.S.C. 11318) is amended to read as follows:

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $1,609,890 for fiscal year 1995 and $1,658,187 for 
     fiscal year 1996.''.

     SEC. 842. CHAIRPERSON.

       Section 202(b) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11312(b) is amended to read as 
     follows:
       ``(b) Chairperson and Vice Chairperson.--
       ``(1) Chairperson.--The Council shall elect a Chairperson 
     from among its members, who shall have a term of 2 years. A 
     member of the Council by reason of any of paragraphs (1) 
     through (16) of subsection (a) who serves as Chairperson for 
     a term may not be elected to serve as Chairperson for the 
     succeeding term. The preceding sentence shall not apply to 
     any member serving as Chairperson on the date of the 
     enactment of the Housing and Community Development Act of 
     1994.
       ``(2) Vice chairperson.--The Vice Chairperson of the 
     Council shall have a term of 2 years and shall be--
       ``(A) the Secretary of Housing and Urban Development, if 
     such Secretary is not elected as the Chairperson of the 
     Council; or
       ``(B) elected by the Council from among its members, if the 
     Secretary of Housing and Urban Development is elected as the 
     Chairperson of the Council.''.

     SEC. 843. EXTENSION.

       Section 209 of the Stewart B. McKinney Homeless Assistance 
     Act (42 U.S.C. 11319) is amended by striking ``October 1, 
     1994'' and inserting ``October 1, 1996''.
   Subtitle C--Federal Emergency Management Agency Food and Shelter 
                                Program

     SEC. 851. AUTHORIZATION OF APPROPRIATIONS.

       Section 322 of the Stewart B. McKinney Homeless Assistance 
     Act (42 U.S.C. 11352) is amended to read as follows:

     ``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $193,186,800 for fiscal year 1995 and $198,982,404 for 
     fiscal year 1996.''.


                   amendment offered by mr. gonzalez

  Mr. GONZALEZ. Madam Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Gonzalez:
       Page 9, line 16, strike ``$733,000,000'' and insert 
     ``$691,000,000''.
       Page 13, line 7, after the period insert the following new 
     sentence: ``The requirement in the preceding sentence with 
     respect to resident members shall not apply to any State or 
     local governing body whose responsibilities include 
     substantial activities other than acting as a public housing 
     agency for purposes of this Act, but shall apply to any 
     advisory committee or organization that is established by 
     such a governing body and whose responsibilities relate only 
     to the governing body's functions as a public housing agency 
     for purposes of this Act.''.
       Page 18, after line 19, insert the following new 
     subsection:
       (f) Use of Community Action Agencies.--Section 23(b) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437u(b)) is 
     amended by adding at the end the following new paragraph:
       ``(5) Use of community action agencies.--A public housing 
     agency may enter into agreements with any local community 
     action agency receiving assistance under the Community 
     Services Block Grant Act providing for such agency to carry 
     out the local program of the public housing agency or to 
     provide any supportive services under the local program.''.
       Page 24, line 17, before the semicolon insert the 
     following: ``, except that, effective during and after the 
     first fiscal year that commences after the expiration of the 
     4-year period beginning on the date of the enactment of this 
     Act, amounts earned by a child may not be excluded under this 
     subparagraph unless (i) the child is enrolled in and 
     attending high school (or a recognized equivalency program), 
     or has received a high school diploma (or the recognized 
     equivalent thereof), or (ii) the public housing agency has 
     determined that requiring the child to comply with clause (i) 
     would significantly interfere with the sole source of 
     financial support of the family or would otherwise create a 
     significant hardship for the family of the child''.
       Page 38, line 23, after ``(vii)'' insert ``effective for 
     fiscal year 1996 and thereafter,''.
       Page 39, line 15, after ``(viii)'' insert ``effective for 
     fiscal year 1996 and thereafter,''.
       Page 42, after line 2, insert the following new section 
     (and redesignate subsequent sections and any references to 
     such sections, and conform the table of contents, 
     accordingly):

     SEC. 124. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO LEVERAGE 
                   AMOUNTS FOR REPLACEMENT AND MODERNIZATION.

       Section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 1437l) is amended by adding after subsection (q), as 
     added by the preceding provisions of this Act, the following 
     new subsection:
       ``(r) Authority for Public Housing Agencies to Leverage 
     Amounts for Replacement and Modernization.--
       ``(1) General authorization.--The Secretary may, upon such 
     terms and conditions as the Secretary may prescribe, 
     authorize a public housing agency (or a partnership including 
     a public housing agency) to use grants provided under 
     subsection (b) to leverage amounts which shall be used for 
     financing housing to replace existing public housing dwelling 
     units or for modernization of public housing, but only if the 
     agency submits to the Secretary a plan for such leveraging 
     that is approved by the Secretary.
       ``(2) Requirements.--The Secretary may approve a plan for 
     leveraging under paragraph (1) only if the Secretary 
     determines that--
       ``(A) the public housing agency has the ability to use the 
     leveraged amounts effectively, directly or through contract 
     management;
       ``(B) of any land owned by the public housing agency upon 
     the approval of the plan that is subject to the plan, and any 
     land to be acquired by the agency under the plan, a portion 
     equivalent in area to the portion used under the plan for 
     providing housing to replace public housing dwelling units in 
     accordance with section 18 is subject to binding covenants or 
     commitments sufficient to ensure that the land will be used 
     permanently for housing reserved for occupancy by low- and 
     very low-income families;
       ``(C) any modernization to be carried out under the plan 
     complies with the modernization plan submitted under this 
     section by the public housing agency and any replacement of 
     public housing dwelling units to be carried out under the 
     plan complies with the requirements of section 18;
       ``(D) the plan provides permanent financing commitments 
     from a sufficient number of additional sources, which may 
     include banks and other conventional lenders, State housing 
     finance agencies, secondary market entities, and other 
     financial institutions;
       ``(E) the public housing agency submitting the plan has an 
     acceptable rate of obligation of assistance provided under 
     this section; and
       ``(F) the plan complies with any other criteria that the 
     Secretary may establish.
       ``(3) Obligation limits.--
       ``(A) Per pha.--The aggregate outstanding principal amount 
     leveraged under this subsection by a public housing agency 
     may not at any time exceed 5 times the amount of the most 
     recent grant for a fiscal year provided under this section 
     for comprehensive modernization.
       ``(B) For all phas.--The aggregate outstanding principal 
     amount leveraged under this subsection by all public housing 
     agencies may not, in any single fiscal year, exceed 
     $2,000,000,000.
       ``(4) Use of comprehensive modernization grants and 
     operating revenues.--Notwithstanding any other provision of 
     this title, a public housing agency for which a plan is 
     approved under this subsection may use amounts provided under 
     this section to the agency for comprehensive modernization 
     and amounts provided under section 9 to the agency for 
     operating subsidies (including program income derived 
     therefrom) for the payment of principal, interest, and fees 
     due on any loans obtained pursuant to the plan.
       ``(5) Reports.--The Secretary shall submit a report to the 
     Congress annually regarding the activities under plans for 
     leveraging approved under this subsection and the status of 
     loans, financing, and investments obtained under such 
     plans.''.
       Page 61, line 25, strike ``sentence'' and insert 
     ``sentences''.
       Page 62, line 6, after the period insert the following new 
     sentence: ``Any resident management corporation or resident 
     council may use such assistance to enter into agreements with 
     any local community action agency receiving assistance under 
     the Community Services Block Grant Act for such agency to 
     carry out such activities.''.
       Page 63, line 4, after ``entities'' insert ``(including 
     local community action agencies receiving assistance under 
     the Community Services Block Grant Act)''.
       Page 65, line 2, after ``public housing agencies'' insert 
     ``, and to local community action agencies that are receiving 
     assistance under the Community Services Block Grant Act and 
     are working in coordination with public housing agencies,''.
       Page 65, line 7, strike ``to'' and insert ``for''.
       Page 67, after line 17, insert the following new 
     subsection:
       (e) Use of Community Action Agencies.--Section 22 of the 
     United States Housing Act of 1937 is amended--
       (1) in subsection (c)(4), by inserting ``, including local 
     community action agencies receiving assistance under the 
     Community Services Block Grant Act'' after ``providers''; and
       (2) in subsection (h), by striking ``employ'' and inserting 
     ``provide for the employment of''.
       Page 91, line 7, after ``1970'' insert ``, any provision of 
     the Internal Revenue Code of 1986,''.
       Page 106, line 18, after ``by'' insert ``housing''.
       Page 107, strike ``house-'' in line 2 and all that follows 
     through line 7 and insert ``recent movers and shall not 
     consider public housing units, units for which market rents 
     cannot be determined, and newly constructed units.''.
       Page 108, line 18, strike ``The'' and insert ``Except as 
     provided in paragraph (2), the''.
       Page 109, line 14, strike ``and'' the second place it 
     appears.
       Page 109, line 16, strike the period and insert ``; and''.
       Page 109, after line 16, insert the following:
       ``(D) the public housing agency has first exercised any 
     authority under paragraphs (1) and (2)(A) of subsection (d) 
     to increase the maximum monthly rent for the dwelling unit.
     The amount of the monthly assistance payment under this 
     section with respect to a dwelling unit for a family paying 
     rent as provided in this paragraph shall be the difference 
     between an amount based on the fair market rent and the rent 
     the family is required to pay under section 3(a).''.
       Page 141, line 6, strike ``1994'' and insert ``1993''.
       Page 142, line 6, after ``family'' insert ``not living 
     within the jurisdiction of a public housing agency at the 
     time such family applies for or receives assistance from the 
     agency''.0
       Page 148, after line 7, insert the following:
       ``(D) Report.--The Secretary shall include in each annual 
     report of the Secretary under section 8 of the Department of 
     Housing and Urban Development Act information specifying the 
     number of families assisted pursuant to this paragraph during 
     the preceding 2-year period and the number of communities in 
     which such assistance was used, describing the extent of 
     cooperation between public housing agencies and public child 
     welfare agencies in timely identifying families for which 
     such assistance is appropriate and in providing such 
     assistance, and describing any impediments to providing such 
     assistance.
       Page 179, line 18, after the second comma insert the 
     following: ``and rehabilitation activities undertaken by 
     Pennrose Properties in connection with 40 dwelling units for 
     senior citizens in the Providence Square development located 
     in New Brunswick, New Jersey,''.
       Page 179, line 19, after ``pursuant to'' insert ``the 
     approval of and''.
       Page 179, line 21, strike ``clause (ii)'' and insert 
     ``clauses (i) and (ii)''.
       Page 190, strike line 19 and insert ``relevant metropolitan 
     market area''.
       Page 192, lines 10 and 11, strike ``market area in which 
     the qualified housing is located'' and insert ``relevant 
     metropolitan market area''.
       Page 193, after line 8, insert the following new 
     paragraphs:
       (3) Market rent contracts for high-cost areas.--
     Notwithstanding paragraphs (1) and (2), in the case of a 
     qualified project for which the Secretary determines that the 
     maximum monthly rents for units in the project offered (or to 
     be offered) by the Secretary under paragraph (1) or (2), as 
     applicable, are less than the monthly rents for comparable 
     units in comparable unassisted housing projects in the 
     relevant metropolitan market area, the Secretary may offer to 
     enter into a new contract for the qualified project that 
     provides for the establishment of the maximum monthly rents 
     at amounts not exceeding the monthly rents for such 
     comparable units. Each new contract entered into under this 
     paragraph shall provide that the maximum monthly rents for 
     the qualified project shall be adjusted annually by applying 
     the annual adjustment factor established by the Secretary 
     under section 156(a)(2) to the entire amount of the maximum 
     monthly rents.
       (4) Contracts for partially assisted projects.--
     Notwithstanding paragraphs (1) and (2), in the case of a 
     qualified project for which assistance is provided under an 
     expiring contract for some, but not all, of the dwelling 
     units in the project, the Secretary may offer to enter into a 
     new contract for the qualified project that provides for the 
     establishment of the maximum monthly rents for units in the 
     project assisted under the expiring contract at amounts not 
     exceeding the sum of (A) the monthly rents for comparable 
     unassisted units in the project, and (B) an allowance for 
     unique costs as determined under section 156(b)(1)(G). Each 
     new contract entered into under this paragraph shall provide 
     that the maximum monthly rents for the qualified project 
     shall be adjusted annually by applying the annual adjustment 
     factor established by the Secretary under section 156(a)(2) 
     to the entire amount of the maximum monthly rents.
       Page 193, line 9, strike ``(3)'' and insert ``(5)''.
       Page 199, strike lines 4 through 9 and insert the following 
     new paragraph:
       (4) Maintenance of housing.--The new contract shall--
       (A) require the owner of the qualified project to maintain 
     the housing in compliance with housing quality standards 
     established by the Secretary for housing assisted under 
     section 8 of the United States Housing Act of 1937;
       (B) provide that the provisions of section 8(h)(10) of such 
     Act shall apply to the qualified project, except that in the 
     case of a qualified project--
       (i) any reference in such section to a public housing 
     agency shall be construed to refer also to the Secretary; and
       (ii) any reference in such section to assistance under 
     section 8 shall be construed to refer to assistance under a 
     new contract; and
       (C) provide that upon a request by the owner, the Secretary 
     shall provide for a review of any determination of a serious 
     noncompliance of the project with such housing quality 
     standards, which review shall--
       (i) determine whether (I) a serious noncompliance has 
     occurred, (II) the owner was permitted a reasonable period of 
     time to correct the noncompliance, and (III) the owner has 
     the responsibility to correct the noncompliance;
       (ii) be conducted by an officer or employee of the 
     Department of Housing and Urban Development who is not the 
     officer or employee who made the initial determination of the 
     noncompliance and is not subject to the supervision of such 
     officer or employee; and
       (iii) include a written decision of the finding pursuant to 
     the review.
       Page 200, strike lines 3 through 19, and insert the 
     following new paragraph:
       (8) Maximum monthly rents.--A new contract shall provide 
     that the maximum monthly rents for the project under the 
     contract shall be the amount determined under section 156 
     (or, in the case of a new contract entered into under 
     paragraph (3) or (4) of section 153(b), the amount determined 
     under such paragraph) upon entering into the contract, and 
     shall be adjusted annually as provided under such section (or 
     paragraph (3) or (4) of section 153(b), if applicable), 
     except that--
       (A) the maximum monthly rents shall be redetermined in the 
     manner provided under sections 153(b) and 156 upon each 
     renewal of the contract;
       (B) the owner of the project may, at any time, submit a 
     written request to the Secretary for a redetermination of the 
     maximum monthly rents for the project using the procedure 
     under section 156(b) and, after such request, the rents shall 
     be determined using such method for the remainder of the term 
     of the contract; and
       (C) in the case of a project that is subject to a mortgage 
     insured by the Secretary and for which the maximum monthly 
     rents under the new contract are determined and adjusted 
     under section 156(a), if at any time the Secretary determines 
     that such rents are not sufficient to provide for the sound 
     operation of the project while maintaining payment of debt 
     service for the project, the Secretary may require 
     redetermination of the maximum monthly rents for the project 
     using the procedure under section 156(b) and, after such 
     request, the rents shall be determined using such method for 
     the remainder of the term of the contract and the provisions 
     of section 159(b) shall apply to the project.
       Page 201, line 14, strike ``The'' and all that follows 
     through line 20 and insert the following new sentence: ``The 
     Secretary shall also conduct such an inspection or review of 
     a project when requested by the unit of general local 
     government for the jurisdiction in which the project is 
     located or by a petition signed by not less than 10 percent 
     of the tenants of occupied units in the project.''.
       Page 202, strike lines 8 through 14 and insert the 
     following new paragraph:
       (2) Rent adjustments.--
       (A) In general.--The maximum monthly rents for any 
     qualified project for which the rents under a new contract 
     are to be determined under this subsection shall be adjusted 
     annually by applying the annual adjustment factor established 
     by the Secretary under subparagraph (B) to the entire amount 
     of the maximum monthly rents.
       (B) Annual adjustment factor.--The annual adjustment factor 
     shall--
       (i) measure the annual change for a market area in the 
     prevailing unsubsidized market rents for various sizes and 
     types of dwelling units and shall be based solely on such 
     measure;
       (ii) provide for decreases and increases in the maximum 
     monthly rents; and
       (iii) not provide for adjustment in the maximum monthly 
     rents based on any factor other than the factor described in 
     clause (i).
     The Secretary shall establish market areas for purposes of 
     establishing annual adjustment factors under this paragraph.
       Page 203, line 1, strike ``support'' and insert ``cover the 
     sum of''.
       Page 203, line 24, strike ``Operating'' and insert ``The 
     operating''.
       Page 204, line 4, strike ``Adequate'' and insert ``An 
     amount for adequate''.
       Page 204, strike line 18 and all that follows through page 
     205, line 2, and insert the following new subparagraph:
       (E) Distribution to owner.--An allowance for a distribution 
     to the owner of the qualified project, which shall be an 
     amount for each dwelling unit in the project equal to the 
     higher of--
       (i) $350 per year; or
       (ii) 6 percent of the fair market rental for dwelling units 
     of the applicable size and type in the relevant metropolitan 
     market area.
       Page 206, lines 1 and 2, strike ``market area in which the 
     qualified housing is located'' and insert ``relevant 
     metropolitan market area''.
       Page 206, strike lines 16 through 22, and insert the 
     following:
       (A) In general.--The maximum monthly rents for any 
     qualified project for which the rents under a new contract 
     are to be determined under this subsection shall be adjusted 
     annually by applying the operating cost adjustment factor 
     established by the Secretary under subparagraph (B) to the 
     entire amount of the maximum monthly rents.
       (B) Operating cost adjustment factor.--The operating cost 
     adjustment factor for any 12-month period shall be equal to--
       (i) the percent increase or decrease, if any, in the 
     Consumer Price Index published for the 6th month preceding 
     the beginning of such period over such index published for 
     the 18th month preceding such period, adjusted to the nearest 
     \1/10\ of 1 percent; or
       (ii) any other equivalent measure of change in operating 
     costs determined by the Secretary.
     For purposes of this subparagraph, the term ``Consumer Price 
     Index'' means the Consumer Price Index for All Urban 
     Consumers, United States City Average, Housing Component, 
     prepared by the Bureau of Labor Statistics of the Department 
     of Labor.
       Page 206, line 23, strike ``(B)'' and insert ``(C)''.
       Page 208, lines 15 and 16, strike ``market area in which 
     the project is located'' and insert ``relevant metropolitan 
     market area''.
       Page 211, strike line 15 and all that follows through page 
     212, line 7.
       Page 212, line 8, strike ``(f)'' and insert ``(e)''.
       Page 212, line 16, strike ``of'' the 1st place it appears 
     and insert ``occurring 12 months before''.
       Page 213, line 2, strike ``may'' and insert ``shall''.
       Page 215, line 6, after the period insert the following new 
     sentence: ``The authority of the Secretary under this section 
     to restructure or refinance mortgages shall be effective for 
     any fiscal year only to such extent or in such amounts as are 
     or have been provided for such costs in appropriation Acts 
     for such fiscal year.''.
       Page 215, line 11, before ``meets'' insert ``, in the 
     determination of the Secretary,''.
       Page 217, strike lines 13 through 19 and insert the 
     following:
       (2) Expedited acquisition.--The Secretary may expedite the 
     acquisition of residual receipts for a qualified project by 
     entering into an agreement with the owner of the project that 
     provides--
       (A) for the owner to retain a portion of any residual 
     receipts accumulated for the project, which shall not to 
     exceed 15 percent of such accumulated receipts;
       (B) for the Secretary to acquire the portion of the 
     accumulated residual receipts for the project not retained by 
     the owner not less than 12 months before the expiration of 
     the expiring contract for the project, unless the Secretary 
     provides otherwise; and
       (C) for any residual receipts accumulated for the project 
     after the date of the acquisition under subparagraph (B) to 
     be distributed to the owner and the Secretary, and to be 
     acquired periodically by the Secretary, in the same 
     percentages as the residual receipts for the project are 
     distributed pursuant to subparagraphs (A) and (B).
       Page 218, strike lines 3 and 4 and insert the following 
     (and conform the table of contents accordingly):

     SEC. 161. SUPPORTIVE SERVICES AND TECHNICAL ASSISTANCE.

       (a) Provision of Service Coordinator.--
       (1) Requirement.--Each
       Page 218, line 7, strike ``subsection (b)'' and insert 
     ``paragraph (2)''.
       Page 218, strike line 15 and insert the following:
       (2) Payment of costs.--Notwithstanding any other
       Page 218, after line 20 insert the following new 
     subsection:
       (b) Technical Assistance.--
       (1) Required assistance.--Using a portion of any amounts in 
     an account for residual receipts established for a qualified 
     project and any amounts made available for new contracts 
     under this subtitle, the Secretary shall (subject to the 
     availability of such amounts) provide for technical 
     assistance for tenants of the project (including any resident 
     councils), nonprofit organizations, nonprofit developers of 
     affordable housing, and State and local governmental agencies 
     to the extent necessary to--
       (A) develop the capacity and ability of such entities to 
     carry out activities pursuant to this subtitle; and
       (B) assist such entities in preparing submissions, 
     proposals, and such other documents and entering into 
     contracts, agreements, and other arrangements involved in 
     such activities.
       (2) Use of existing program for delivery.--The Secretary 
     may provide technical assistance under this subsection with 
     respect to qualified projects through the program and 
     procedures established under subtitle C of the Low-Income 
     Housing Preservation and Resident Homeownership Act of 1990 
     (as added by section 312 of the Housing and Community 
     Development Act of 1992) for technical assistance with 
     respect to eligible low-income housing.
       Page 219, line 8, strike ``(4)(A)'' and insert ``(7)(A)''.
       Page 220, line 8, strike ``(f)(2)(B)'' and insert 
     ``(e)(2)(B)''.
       Page 220, line 9, strike ``153(b)(3)'' and insert 
     ``153(b)(5)''.
       Page 220, after line 19, insert the following new 
     paragraphs:
       (8) the term ``relevant metropolitan market area'' means, 
     with respect to a qualified project, a standard metropolitan 
     area established by the Director of the Office of Management 
     and Budget or a portion of such an area determined 
     appropriate by the Secretary for purposes of this subtitle, 
     in which a project is located or, in the case of a project 
     not located in a standard metropolitan area, which is the 
     nearest such area to the project;
       (9) the term ``remaining useful life'' means, with respect 
     to a qualified project, the period during which the physical 
     characteristics of the project remain in a condition suitable 
     for occupancy, assuming normal maintenance and repairs are 
     made and major systems and capital components are replaced as 
     becomes necessary, as determined on the record after 
     opportunity for a hearing, in accordance with standards for 
     determining when the useful life of an eligible low-income 
     housing project has expired that are established by the 
     Secretary by rule under section 553 of title 5, United States 
     Code;
       Page 220, line 20, strike ``(8)'' and insert ``(10)''.
       Page 220, line 23, strike ``(9)'' and insert ``(11)''.
       Page 222, line 2, after the period insert the following new 
     sentence: ``Such amounts shall also be available for 
     implementation grants under title III of the United States 
     Housing Act of 1937, except that not more than $25,000,000 
     may be used for the purpose under this sentence and such 
     amounts may only be used for implementation grants to 
     applicants who have successfully completed planning grants 
     under such title.''.
       Page 238, line 8, after ``entities'' insert ``(including 
     local community action agencies receiving assistance under 
     the Community Services Block Grant Act)''.
       Page 239, line 18, after ``entities'' insert ``(including 
     local community action agencies receiving assistance under 
     the Community Services Block Grant Act)''.
       Page 256, line 16, strike ``appropriated'' and insert 
     ``available, or that the Secretary is authorized to use,''.
       Page 257, after line 5, insert the following:
     Any other provision of law enacted before or after the date 
     of the enactment of the Housing and Community Development Act 
     of 1994 that limits the authority of the Secretary to use 
     amounts to carry out this chapter upon the apportionment of 
     such amounts in a manner not provided for in this subsection 
     shall not be effective.
       Page 258, line 8, strike ``$400,000,000'' and insert 
     ``$358,000,000''.
       Page 267, line 23, after ``for,'' insert ``any provision of 
     the Internal Revenue Code of 1986, or''.
       Page 268, line 17, strike ``$1,775,000,000'' and insert 
     ``$1,700,000,000''.
       Page 268, after line 8, insert the following new section 
     (and redesignate subsequent sections and any references to 
     such sections, and conform the table of contents, 
     accordingly):

     SEC. 188. CERTAIN REVITALIZATION AND RELOCATION ASSISTANCE.

       There is authorized to be appropriated for revitalization 
     and relocation activities for the Windsor Park Subdivision in 
     Las Vegas, Nevada, such sums as may be necessary for fiscal 
     year 1995.
       Page 273, line 24, before the first comma insert ``or for 
     which the homebuyer is assisted''.
       Page 293, line 20, before ``The'' insert ``(a) Extension.--
     ''.
       Page 293, after line 23, insert the following new 
     subsection:
       (b) Budget Compliance.--Section 221(g)(4)(C) of the 
     National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is amended by 
     adding at the end the following new clause:
       ``(ix) This subparagraph shall be effective for any fiscal 
     year only to such extent or in such amounts as are or have 
     been provided in appropriation Acts for such fiscal year.''.
       Page 313, strike line 16 and all that follows through page 
     314, line 15 (and redesignate subsequent sections and any 
     references to such sections, and conform the table of 
     contents, accordingly).
       Page 357, line 18, after ``no tax'' insert ``of any State, 
     county, municipality, or local taxing authority''.
       Page 368, strike ``The'' in line 17 and all that follows 
     through the first period in line 20 and insert the following: 
     ``The Secretary shall pay a uniform rate of interest on 
     escrowed amounts. The interest rate to be paid on such 
     amounts shall be determined by the Secretary based on the 
     interest earned less an amount not to exceed 1 percent to be 
     used to offset expenses in carrying out the provisions of 
     this title.''.
       Page 369, strike ``Deferred'' in line 20 and all that 
     follows through the first period in line 22 and insert the 
     following: ``Deferred amounts shall not exceed 25 percent of 
     the amount of the payment due at 1 percent interest and shall 
     be subject to recapture.''.
       Page 370, line 9, after ``shall'' insert ``, subject to the 
     availability of amounts for assistance under this title,''.
       Page 371, line 3, after the period insert the following new 
     sentence: ``The authority of the Secretary under this 
     subsection to modify loans shall be effective for any fiscal 
     year only to such extent or in such amounts as are or have 
     been provided for such costs in appropriation Acts for such 
     fiscal year.''.
       Page 385, line 23, after the period insert the following 
     new sentence: ``The authority of the Secretary under this 
     subsection to modify loans shall be effective for any fiscal 
     year only to such extent or in such amounts as are or have 
     been provided for such costs in appropriation Acts for such 
     fiscal year.''.
       Page 371, line 19, strike ``Pinewest'' and insert ``Pine 
     View West''.
       Page 399, line 16, after ``experience in'' insert ``or 
     capable of''.
       Page 405, line 1, after ``corporations,'' insert ``local 
     community action agencies receiving assistance under the 
     Community Services Block Grant Act,''.
       Page 406, line 9, strike ``90 percent of'' and insert ``the 
     total''.
       Page 407, line 6, after ``unless'' insert ``the housing is 
     acquired by foreclosure (or instrument in lieu of 
     foreclosure) or''.
       Page 424, strike lines 18 through 20 and insert the 
     following new paragraph:
       (2) in paragraph (8)--
       (A) by striking ``and'' after ``under this paragraph,'';
       (B) by striking ``fiscal year 1994'' and inserting ``fiscal 
     years 1994, 1995, and 1996''; and
       (C) by inserting before the semicolon at the end the 
     following: ``, and except that of any amount of assistance 
     under this title (including program income) to the Cities of 
     Vallejo and Benecia and to Napa County, in California, such 
     cities and county may use not more than 20 percent in fiscal 
     year 1995 and 25 percent in fiscal year 1996 for activities 
     under this paragraph''.
       Page 425, after line 16, insert the following new section 
     (and redesignate subsequent sections and any references to 
     such sections, and conform the table of contents, 
     accordingly):

     SEC. 605. PROHIBITION OF USE OF CDBG ASSISTANCE FOR 
                   EMPLOYMENT RELOCATION ACTIVITIES.

       Section 105 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5305) is amended by adding at the end the 
     following new subsection:
       ``(h) Prohibition of Use of Assistance for Employment 
     Relocation Activities.--Notwithstanding any other provision 
     of law, no amounts from a grant under section 106 made in 
     fiscal year 1994 or any succeeding fiscal year may be used 
     for any activity (including any infrastructure improvement) 
     that is intended, or likely, to facilitate the relocation or 
     expansion of any industrial or commercial plant, facility, or 
     operation, from one area to another area, if the relocation 
     or expansion will result in a loss of employment in the area 
     from which the relocation or expansion occurs.''.
       Page 427, line 6, before the first period insert the 
     following new sentence: ``Using any amounts appropriated for 
     grants under this subsection for fiscal years 1995 and 1996, 
     the Secretary shall make a grant in the amount of $3,650,000 
     in each such fiscal year to the Earth Conservancy in Luzerne 
     County, Pennsylvania, which shall be used for carrying out a 
     demonstration of using innovative environmental technologies 
     to reclaim land used for community and economic development 
     purposes that has been damaged by anthracite coal mining 
     activities.''.
       Page 429, line 1, strike ``(f)'' and insert ``(g)''.
       Page 429, lines 22 and 23, after ``organizations'' insert 
     ``(including local community action agencies receiving 
     assistance under the Community Services Block Grant Act)''.
       Page 430, lines 4 and 5, after ``organizations'' insert 
     ``(including local community action agencies receiving 
     assistance under the Community Services Block Grant Act)''.
       Page 432, after line 7, insert the following new 
     subparagraph:
       (c) Geno Baroni Recognition Awards for Neighborhood Self-
     Help Organizations.--Section 4 of the HUD Demonstration Act 
     of 1993 is amended by inserting after subsection (e) (as so 
     redesignated by subsection (b) of this section) the following 
     new subsection:
       ``(f) Geno Baroni Recognition Awards for Neighborhood Self-
     Help Organizations.--
       ``(1) Authority.--The Secretary shall establish an award to 
     be known as the Geno Baroni Recognition Award for 
     Neighborhood Self-Help Organizations, and shall select 
     community-based organizations and capacity-building 
     organizations for such award annually pursuant to the 
     criteria under paragraph (3).
       ``(2) Purpose.--The purpose of the awards under this 
     subsection shall be--
       ``(A) to focus attention on and provide monetary 
     compensation to successful self-help organizations that have 
     established and implemented effective strategies to restore 
     economic vitality to neighborhoods in the United States; and
       ``(B) to facilitate training and other forms of capacity-
     building assistance to improve and expand the ability of 
     community-based organizations to carry out activities 
     referred in subparagraph (A).
       ``(3) Criteria.--The Secretary shall prescribe criteria for 
     the selection of community-based organizations and capacity-
     building organizations for the award as the Secretary 
     considers appropriate, which shall include the extent to 
     which the activities of an organization meet the criteria 
     under subsection (d) and the extent to which an organization 
     has--
       ``(A) promoted, implemented and supported self-help 
     neighborhood activities that integrate poorer, inner-city 
     neighborhoods into the greater metropolitan region;
       ``(B) furthered sustainable community development by 
     expanding fair housing opportunities, furthering economic 
     revitalization, reducing economic isolation of income groups 
     within communities, expanding housing, education, and 
     employment opportunities for persons of low or moderate 
     income, and providing other amenities in low-income 
     neighborhoods;
       ``(C) promoted and supported neighborhood leadership and 
     responsibility;
       ``(D) leveraged private contributions to support a wide 
     variety of community development initiatives on a long-term 
     basis; and
       ``(E) established and enhanced the managerial, financial, 
     and administrative capacity of the organization.
       ``(4) Monetary award.--In connection with each award made 
     under this subsection to a community-based organization or 
     capacity-building organization, the Secretary shall, to the 
     extent amounts are available pursuant to paragraph (6), 
     provide a monetary award to the organization in the amount of 
     $50,000.
       ``(5) Use of funds for administrative purposes.--The 
     Secretary may use amounts made available to carry out this 
     subsection to defray the costs of the Secretary in connection 
     with making awards under this section, including costs for--
       ``(A) printing and disseminating information;
       ``(B) holding conferences;
       ``(C) holding competition for awards, including travel and 
     per diem costs; and
       ``(D) travel costs of award winners to attend follow-up 
     conferences endorsed by the Secretary and to provide peer-to-
     peer assistance to other appropriate individuals and 
     entities.
       ``(6) Funding.--
       ``(A) In general.--Of any amounts appropriated for fiscal 
     year 1995 to carry out this section 4, 10 percent shall be 
     used to carry out this subsection. Of any amounts 
     appropriated for fiscal year 1996 to carry out this section, 
     such sums as may be necessary shall be used to carry out this 
     subsection. The provisions of subsection (c) shall not apply 
     to any amounts used to carry out this subsection.
       ``(B) Set-aside for administrative purposes.--Of amounts 
     available for any fiscal year to carry out this subsection 
     pursuant to subparagraph (A), not more than 2 percent may be 
     used for the purposes in paragraph (5).''.
       Page 441, after line 17, insert the following new 
     paragraph:
       ``(3) Prohibition of use of assistance for employment 
     relocation activities.--Notwithstanding any other provision 
     of this section, no grant amounts under this section may be 
     used for any activity (including any infrastructure 
     improvement) that is intended, or likely, to facilitate the 
     relocation or expansion of any industrial or commercial 
     plant, facility, or operation, from one area to another area, 
     if the relocation or expansion will result in a loss of 
     employment in the area from which the relocation or expansion 
     occurs.
       Page 446, after line 7, insert the following new 
     subsection:
       (e) Binghamton, New York.--Notwithstanding any other 
     provision of law, the City of Binghamton, New York, may 
     retain amounts provided under an urban development action 
     grant under section 119 of the Housing and Community 
     Development Act of 1974 for Project No. B-88-AA-36-0535 and 
     use such funds for the High Technology Center project, if 
     such project is commenced not later than 6 months after the 
     date of the enactment of this Act.
       Page 446, line 8, strike ``(e)'' and insert ``(f)''.
       Page 455, line 19, strike ``(a) In General.--''.
       Page 457, strike line 16 and all that follows through page 
     458, line 19.
       Page 460, after line 9, insert the following new paragraph:
       (3) Eligible housing.--Section 1011 of the Housing and 
     Community Development Act of 1992 (42 U.S.C. 4852) is 
     amended--
       (A) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Authority and Eligible Housing.--
       ``(1) Authority.--The Secretary may provide grants to 
     eligible applicants to evaluate and reduce lead-based paint 
     hazards in housing that meets the requirements under 
     paragraphs (2) and (3) and is not federally assisted housing, 
     federally owned housing, or public housing, in accordance 
     with the provisions of this section.
       ``(2) Eligible housing.--Housing that meets the 
     requirements under this paragraph is the following housing:
       ``(A) Rental housing.--In the case of rental housing, 
     housing in which at least 50 percent of the dwelling units 
     are occupied by or available to households with incomes not 
     exceeding 50 percent of the median income for the area, as 
     defined by the Secretary, and the remainder of the dwelling 
     units are occupied by or available to households with incomes 
     not exceeding 80 percent of the median income for the area, 
     as defined by the Secretary. .
       ``(B) Owner-occupied housing.--In the case of owner-
     occupied housing, a dwelling that is the principal residence 
     of a household with an income not exceeding 80 percent of the 
     median income for the area, as defined by the Secretary.
       ``(3) Limitations on use of amounts.--
       ``(A) Rental housing.--In the case of rental housing for 
     which lead hazard reduction activities are conducted using 
     grant amounts under this section--
       ``(i) notwithstanding paragraph (2)(A), for housing with 5 
     or more dwelling units, not more than 20 percent of such 
     remaining dwelling units may be occupied by households with 
     incomes exceeding 80 percent of the median income for the 
     area, as defined by the Secretary; and
       ``(ii) all vacant dwelling units for which such activities 
     have been conducted shall be made available only to 
     households with a child or children under 6 years of age, and 
     among such households priority shall be given to households 
     with incomes not exceeding 50 percent of the median income 
     for the area, as defined by the Secretary.
       ``(B) Owner-occupied housing.--In the case of owner-
     occupied housing for which lead hazard reduction activities 
     are conducted using grant amounts under this section, 90 
     percent of the dwelling units for which such activities are 
     conducted shall be dwelling units occupied by a household 
     with a child or children under 6 years of age or dwelling 
     units in which a child of such age regularly spends a 
     substantial portion of his or her time.
       ``(4) Exception to eligible housing requirements.--
     Notwithstanding paragraph (2), housing that qualifies as 
     affordable housing under section 215 of the Cranston-Gonzalez 
     National Affordable Housing Act (including housing that 
     receives assistance under section 8 of the United States 
     Housing Act of 1937) and for which activities assisted under 
     this section are to be conducted using amounts made available 
     to carry out this section for fiscal year 1993 shall be 
     considered housing that meets the requirements of paragraph 
     (2) and shall not be subject to the requirements of paragraph 
     (3), but only if the recipient of such assistance elects, 
     before commencing such activities with such assistance, to be 
     subject to the provisions of this paragraph and the Secretary 
     approves such election. Any such recipient making such an 
     election may not use such assistance to carry out activities 
     under this section with respect to housing that meets the 
     requirements of paragraphs (2) and (3).''; and
       (B) by striking ``priority housing'' each place it appears 
     and inserting ``housing that meets the requirements under 
     subsection (a)''.
       Page 461, after line 12, insert the following new 
     subsection:
       (c) Definitions.--Section 1004 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 4851b) is amended--
       (1) by striking paragraph (20); and
       (2) by redesignating paragraphs (21) through (27) as 
     paragraphs (20) through (26), respectively.
       Page 478, line 23, after the first period insert the 
     following new sentence: ``Notwithstanding any other provision 
     of law, user fees collected by the Financial Management 
     Services incident to sections 9304 through 9309 of this title 
     shall be credited to the appropriation of that agency and may 
     be retained without fiscal year limitation to carry out the 
     provisions of such sections.''.
       Page 478, after line 23, insert the following new section 
     (and conform the table of contents accordingly):

     SEC. 723. INSURED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION 
                   ACCESS TO FEDERAL HOME LOAN BANK ADVANCES.

       (a) In General.--Section 10 of the Federal Home Loan Bank 
     Act (12 U.S.C. 1430) is amended by adding at the end the 
     following new subsection:
       ``(k) Community Development Financial Institution Access to 
     Advances.--Any insured community development financial 
     institution (as defined in section 3(e) of the Community 
     Development Banking and Financial Institutions Act of 1993) 
     which meets the requirements of subparagraphs (A) and (B) of 
     section 4(a)(1) may obtain advances from the appropriate 
     Federal home loan bank in accordance with this section in the 
     same manner and to the same extent as members of such bank 
     without regard to any stock purchase requirement imposed on 
     members under this Act.''.
       (b) Increase in Lending Cap.--
       (1) In general.--Paragraph (2) of the 1st subsection (e) of 
     section 10 of the Federal Home Loan Bank Act (12 U.S.C. 
     1430(e)(2)) is amended by striking ``30 percent'' and 
     inserting ``40 percent''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply after October 1, 1995.
       Page 481, line 13, strike ``$635,000,000'' and insert 
     ``$735,000,000''.
       Page 481, line 16, strike ``$786,620,000'' and insert 
     ``$925,000,000''.
       Page 483, line 3, after ``area'' insert ``, or a consortium 
     of such entities,''.
       Page 484, line 3, after ``area'' insert ``, or a consortium 
     of such entities,''.
       Page 499, after line 12, insert the following:
       ``(d) Prohibition of Substitution of Funds.--Assistance 
     provided under this subtitle may not be used to replace other 
     public funds previously used, or designated for use, to 
     assist persons who are homeless.''.
       Page 499, line 13, strike ``(d)'' and insert ``(e)''.
       Page 508, after line 23, insert the following:
       ``(3) Minimum state allocation.--Notwithstanding paragraph 
     (2), if, in allocating amounts for States under paragraph (1) 
     for any fiscal year, the amount allocated for the year for a 
     State is less than $2,000,000, the allocation for the State 
     shall instead be $2,000,000 and the increase shall be 
     deducted pro rata from the allocations of other States.
       Page 517, line 1, after ``establish'' insert ``and provide 
     support for the operation of''
       Page 519, line 8, after ``shall'' insert ``be members of 
     the board that represent homeless individuals and families, 
     homeless advocates, or nongovernmental entities that provide 
     assistance to homeless individuals and families. They 
     shall''.
       Page 540, strike line 24 and all that follows through page 
     541, line 24.
       Page 544, after line 10, insert the following:

     ``SEC. 437. INNOVATIVE HOMELESS INITIATIVES.

       ``(a) Eligible Activities.--A recipient may use grant 
     amounts under this subtitle for--
       ``(1) establishing innovative programs to demonstrate 
     methods of undertaking comprehensive strategies for assisting 
     homeless individuals and families (including homeless 
     individuals who have the disease of acquired immunodeficiency 
     syndrome or who are infected with HIV), through cooperative 
     efforts in partnership with other levels of government and 
     the private sector (including nonprofit organizations, 
     foundations, and communities) and through a variety of 
     activities, including the coordination of efforts and the 
     filling of gaps in available services and resources; and
       ``(2) to obtain technical assistance in establishing a 
     program for providing homeless assistance in accordance with 
     the provisions of this subtitle, except that not more than 10 
     percent of the amount provided to a recipient under this 
     subtitle for a fiscal year may be used under this paragraph.
       ``(b) Requirements.--A recipient may use grant amounts to 
     establish an innovative program under subsection (a)(1) only 
     if--
       ``(1) the existing public and private systems for 
     homelessness prevention, outreach, assessment, shelter, 
     services, transitional services, transitional housing, and 
     permanent housing available within the jurisdiction of the 
     recipient would benefit from additional resources to achieve 
     a comprehensive approach to meeting the needs of individuals 
     and families who are homeless, or who are very low-income and 
     at risk of homelessness;
       ``(2) the recipient works cooperatively with the Department 
     of Housing and Urban Development, nonprofit organizations, 
     foundations, other private entities, and the community, to 
     the extent feasible, to design and implement the program; and
       ``(3) the recipient obtains a commitment from the 
     jurisdiction to make necessary changes in policy and 
     procedure to provide sufficient flexibility and resources as 
     necessary to implement and sustain the program.''.
       Page 544, line 11, strike ``437'' and insert ``438''.
       Page 545, strike ``Of'' in line 12 and all that follows 
     through line 20.
       Page 546, line 20, strike ``$206,000,000'' and insert 
     ``$200,000,000''.
       Page 560, line 9, strike ``$32,197,800'' and insert 
     ``$30,000,000''.
       Page 560, line 10, strike ``$33,163,734'' and insert 
     ``$30,000,000''.
       Page 561, after line 2, strike the item relating to section 
     437 and insert the following:
``Sec. 437. Innovative homeless initiatives.
``Sec. 438. Other approved activities.
       Page 562, strike line 3 and all that follows through page 
     563, line 10, and insert the following new section (and 
     conform the table of contents accordingly):

     SEC. 831. FHA SINGLE FAMILY PROPERTY DISPOSITION.

       Section 1407 of the Housing and Community Development Act 
     of 1992 (Public Law 102-550; 106 Stat. 4034) is amended by 
     adding at the end the following new subsection:
       ``(d) Demonstration Program for Immediate Availability.--
       ``(1) Authority.--Notwithstanding subsections (a) and (b), 
     in carrying out the program referred to in subsection (a) in 
     each of 3 States selected by the Secretary of Housing and 
     Urban Development, during the 18-month period beginning on 
     the date of the enactment of the Housing and Community 
     Development Act of 1994 the Secretary shall make any eligible 
     property available for lease under such program without 
     listing and making such property generally available for sale 
     for any intervening period.
       ``(2) Discount.--Any property made available for sale 
     pursuant to this subsection under the program referred to in 
     subsection (a) shall be made available at a price equal to 
     the fair market value of the property less a 20 percent 
     discount.
       ``(3) State and local taxes.--The provisions of subsection 
     (c) shall apply to the demonstration program under this 
     subsection.
       ``(4) Report.--Upon the expiration of the 18-month period 
     referred to in paragraph (1), the Secretary of Housing and 
     Urban Development shall submit a report to the Congress 
     analyzing the extent to which single family properties are 
     made available for use by the homeless under the program 
     referred to in subsection (a), as carried out under 
     subsections (a) and (b) and as carried out under this 
     subsection. The report shall also analyze the effect of 
     carrying out the program under each of such provisions on the 
     Mutual Mortgage Insurance Fund.''.
       Page 563, after line 10, insert the following new section 
     (and conform the table of contents accordingly):

     SEC. 833. STRATEGY TO ELIMINATE UNFIT TRANSIENT FACILITIES.

       Section 825(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11301 note) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(4) that States and units of general local government 
     shall eliminate the use of unfit transient facilities as 
     housing for homeless families with children not later than 
     July 1, 1997, in the manner provided under the strategy.''.
       Page 565, line 10, strike ``$193,186,800'' and insert 
     ``$130,000,000''.
       Page 565, line 11, strike ``$198,982,404'' and insert 
     ``$130,000,000''.
       Page 565, after line 11, insert the following new subtitle 
     (and conform the table of contents accordingly):
      Subtitle D--Availability of Property at Military Bases for 
                     Redevelopment and Homeless Use

     SEC. 861. AVAILABILITY OF PROPERTY AT MILITARY BASES FOR 
                   REDEVELOPMENT AND HOMELESS USE.

       (a) Availability of Military Property to Assist the 
     Homeless.--Title V of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11411 et seq.) is amended by adding 
     at the end the following new section:

     ``SEC. 503. SPECIAL PROCEDURES GOVERNING AVAILABILITY OF 
                   PROPERTY AT CLOSED OR REALIGNED MILITARY BASES 
                   TO ASSIST THE HOMELESS.

       ``(a) Sole Authority for Availability of Property.--(1) 
     Property at a military installation closed or realigned under 
     a base closure law shall not be available for use to assist 
     the homeless except as provided by this section.
       ``(2) Until after the appropriate time periods set forth in 
     this section have expired, the Secretary of Housing and Urban 
     Development shall neither request information concerning 
     buildings or property covered by paragraph (1), nor identify 
     such buildings or property as suitable for use to assist the 
     homeless pursuant to section 501(a), other than under the 
     procedures set forth in this section.
       ``(3) For purposes of this section:
       ``(A) The term `base closure law' means the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (title II of Public Law 100-526; 10 U.S.C. 2687 note) and the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
       ``(B) The term `community' means the political 
     jurisdictions that comprise the redevelopment authority 
     established with respect to a military installation to be 
     closed or realigned under a base closure law.
       ``(b) Identification and Notification of Property for 
     Redevelopment.--(1) Not later than the date on which the 
     Secretary of Defense completes the final determination under 
     a base closure law regarding whether another department or 
     agency of the Federal Government has identified a use for any 
     portion of a military installation to be closed or realigned 
     under such base closure law, the Secretary of Defense shall--
       ``(A) complete any determinations or surveys necessary to 
     identify whether any building or property described in 
     paragraph (2) at such installation is excess property, 
     surplus property, or unutilized or underutilized property;
       ``(B) submit to the Secretary of Housing and Urban 
     Development written notice containing information on such 
     buildings or property and specifying the redevelopment 
     authority that exists with respect to the installation; and
       ``(C) submit to the redevelopment authority with respect to 
     the installation written notice of the properties available 
     for use in developing a reuse plan pursuant to subsection 
     (d).
       ``(2) The buildings and property referred to in paragraph 
     (1)(A) are any buildings or property located at the 
     installation involved for which no use is identified, or of 
     which no Federal department or agency will accept transfer, 
     pursuant to the final determination of transferability 
     referred to in paragraph (1).
       ``(3) Notice submitted to the Secretary of Housing and 
     Urban Development under paragraph (1)(B) regarding excess 
     property, surplus property, or unutilized or underutilized 
     property at a military installation shall be available only 
     for the purpose of permitting the redevelopment authority 
     with respect to the installation to develop a reuse plan for 
     the property that makes available a reasonable amount of 
     property or assistance to the homeless in the community.
       ``(4) Within 60 days after receiving a written notice under 
     paragraph (1)(B), the Secretary of Housing and Urban 
     Development shall publish in the Federal Register information 
     regarding the property described in the notice and available 
     for use to develop a reuse plan pursuant to subsection (d) 
     and information specifying the redevelopment authority 
     responsible for preparing the reuse plan under subsection 
     (d).
       ``(c) Period for Development of Reuse Plan.--(1) The 
     Secretary of Defense shall give each redevelopment authority 
     that receives a written notice under subsection (b)(1)(C) a 
     one-year period from the date of the receipt of the notice in 
     which to develop a reuse plan under subsection (d) for the 
     buildings and property identified in the notice.
       ``(2) The Secretary of Defense may extend the period 
     provided under paragraph (1) for not more than an additional 
     6 months to permit a redevelopment authority to complete its 
     reuse plan.
       ``(d) Reuse Plan To Meet the Needs of the Homeless.--(1) 
     Not later than the end of the period provided under 
     subsection (c) to a redevelopment authority, the 
     redevelopment authority shall submit in writing to the 
     Secretary of Defense and the Secretary of Housing and Urban 
     Development a reuse plan for the buildings and property 
     identified in the written notice submitted to the 
     redevelopment authority under subsection (b)(1)(C) at the 
     military installation for which the redevelopment authority 
     is established. The reuse plan may be a part of, or a 
     supplement to, the redevelopment plan otherwise authorized 
     under a base closure law for a military installation.
       ``(2) The reuse plan shall include provisions for use to 
     assist the homeless, shall enumerate homeless providers and 
     public agencies consulted regarding the plan, and shall 
     include a commitment to enter into legally binding agreements 
     to make available a reasonable amount of property or 
     assistance to the homeless in the community. Such property 
     may consist of buildings and property located at the military 
     installation to be closed or realigned or off of the 
     installation.
       ``(e) Review of Reuse Plan by Secretary of Housing and 
     Urban Development.--(1) The Secretary of Defense shall 
     consider a reuse plan submitted under subsection (d) for 
     purposes of disposal of property at the military installation 
     for which the reuse plan is developed unless the Secretary of 
     Housing and Urban Development, within 60 days of receipt of 
     the reuse plan, determines under paragraph (2) that the reuse 
     plan does not make available a reasonable amount of property 
     or assistance to the homeless in the community involved.
       ``(2) The Secretary of Housing and Urban Development shall 
     determine that a reuse plan makes available a reasonable 
     amount of property and assistance to the homeless within the 
     community involved if--
       ``(A) the reuse plan includes a commitment to enter into 
     legally binding agreements to provide assistance to the 
     homeless within the community;
       ``(B) the reuse plan balances the need for providing 
     property and assistance to the homeless with the overall 
     reuse plan for the military installation;
       ``(C) the reuse plan was developed in consultation with 
     local representatives of the homeless, including 
     representatives of the applicable homeless assistance 
     planning board established under section 411(b) and 
     representatives of local nongovernmental homeless providers;
       ``(D) the reuse plan is consistent with the comprehensive 
     housing affordability strategy under section 105 of the 
     Cranston-Gonzalez National Affordable Housing Act; and
       ``(E) the reuse plan specifies the manner in which property 
     or assistance will be made available for homeless assistance.
       ``(3) In making a determination under paragraph (2) with 
     respect to a reuse plan, the Secretary of Housing and Urban 
     Development shall--
       ``(A) consider the population of homeless in the community 
     involved, the extent of current services to assist the 
     homeless within the community, the extent of the commitment 
     of resources by local governments in the community to assist 
     the homeless within the community, the need for additional 
     services to assist the homeless within the community, and the 
     suitability of the property for serving the needs of the 
     homeless; and
       ``(B) solicit and consider comments on the reuse plans from 
     homeless persons or their representatives in the community.
       ``(f) Effect of Failure To Meet the Needs of the 
     Homeless.--If the Secretary of Housing and Urban Development 
     determines under subsection (e) that a reuse plan does not 
     make available a reasonable amount of property or assistance 
     to the homeless in the community involved, the Secretary 
     shall submit to the redevelopment authority submitting the 
     reuse plan and to the Secretary of Defense a report 
     containing the reasons for the determination. The Secretary 
     of Housing and Urban Development shall submit the report 
     within 30 days of making the determination.
       ``(2) A redevelopment authority shall have an additional 6 
     months from the date of receipt of a report under paragraph 
     (1) to resubmit to the Secretary of Housing and Urban 
     Development and the Secretary of Defense a final reuse plan 
     which will reasonably address the needs of the homeless, as 
     identified by the Secretary of Housing and Urban Development 
     under paragraph (1).
       ``(3) If the Secretary of Housing and Urban Development 
     determines that a final reuse plan submitted under paragraph 
     (2) fails to reasonably address the needs of the homeless, 
     the Secretary shall, within 30 days of making such 
     determination, identify those buildings and other property 
     covered by the reuse plan that are suitable and available for 
     use to assist the homeless. The Secretary shall make such 
     identification according to section 501(a). Buildings and 
     property identified as suitable and available for use to 
     assist the homeless under this paragraph shall be made 
     available for such purposes under section 501.
       ``(g) Effect of Absence of Redevelopment Authority or 
     Exclusion From Reuse Plan.--In the case of buildings or 
     property to be disposed under a base closure law, but for 
     which no reuse authority is identified by the Secretary of 
     Defense or which are not included in a final reuse plan 
     submitted by a reuse authority, the Secretary of Housing and 
     Urban Development shall determine the suitability of such 
     buildings or property for use to assist the homeless 
     according to section 501(a). Buildings and property 
     identified as suitable and available for use to assist the 
     homeless under this paragraph shall be made available for 
     such purposes under section 501.
         ``(h) Application of Section.--(1) Except as provided in 
     paragraph (2), this section shall apply only with respect to 
     property, at a military installation to be closed or 
     realigned under a base closure law, that has not been 
     included, as of July 1, 1994, in a list published by the 
     Secretary of Housing and Urban Development under section 
     501(c)(1)(A).
         ``(2) In the case of the military installations specified 
     in paragraph (3), this section shall apply with respect to 
     the disposal of all property at the installations regardless 
     of the date on which property at such installations was 
     included in a list published by the Secretary of Housing and 
     Urban Development under section 501(c)(1)(A).
         ``(3) The military installations referred to in paragraph 
     (2) are as follows:
         ``(A) Cameron Station Military Garrison, Alexandria, 
     Virginia.
         ``(B) Manhattan Beach, New York, New York.
         ``(C) Naval Station New York.''.
         (b) Conforming Amendment to Base Closure Laws.--(1) 
     Section 204(b)(6) of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (title II of Public Law 100-
     526; 10 U.S.C. 2687 note) is amended by adding at the end the 
     following new subparagraph:
         ``(H) This paragraph shall apply only with respect to 
     buildings and property at a military installation to be 
     closed or realigned under this title that has been included, 
     before July 1, 1994, in a list published by the Secretary of 
     Housing and Urban Development under section 501(c)(1)(A) of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411(c)(1)(A)). This paragraph shall not apply to property 
     at an installation specified in section 503(h)(3) of such 
     Act.''.
         (2) Section 2905(b)(6) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by adding at the end 
     the following new subparagraph:
         ``(H) This paragraph shall apply only with respect to 
     buildings and property at a military installation to be 
     closed or realigned under this part that has been included, 
     before July 1, 1994, in a list published by the Secretary of 
     Housing and Urban Development under section 501(c)(1)(A) of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411(c)(1)(A)). This paragraph shall not apply to property 
     at an installation specified in section 503(h)(3) of such 
     Act.''.
  Mr. GONZALEZ (during the reading). Madam Chairman, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  Mr. GONZALEZ. Madam Chairman, the en bloc amendment, which I offer on 
behalf of myself, Mr. Leach, and Mrs. Roukema, represents a bipartisan 
effort of the committee to provide refining, clarifying and other 
technical changes to the committee bill. I would like to thank Mr. 
Leach and Mrs. Roukema for their cooperation in this effort, and also 
for the assistance of those other Members who agreed to have their 
amendments consolidated into this amendment so that we might expedite 
consideration of this bill.
  Among the principal changes made by the en bloc amendment are 
refining changes to subtitle D of the bill--the Renewal of Expiring 
Contracts for Section 8 New Construction and Substantial 
Rehabilitation. I particularly want to thank Mr. Kennedy for his work 
on this important provision of the bill.
  Other changes include an amendment to the Federal surplus property 
provisions of the McKinney Homeless Assistance Act as it relates to 
closure of military bases. The en bloc amendment establishes a 
collaborative process between the community and homeless providers in 
determining the use of military bases after closure to ensure that the 
best use of these bases is made for housing and community development.
  The en bloc amendment also includes an amendment initially proposed 
by Mr. Barrett, that would add an anti piracy provision to the CDBG and 
the Empowerment Zones and Enterprise Communities Grant Program 
established by the bill, and thereby prohibit the use of Federal funds 
to take jobs away from areas where those jobs are critically needed.
  The amendment also includes a proposal by Mr. Rush to enable PHA's to 
leverage modernization funds for moderization and replacement housing. 
This should greatly enhance the PHA's ability to finance housing for 
the thousands of families living in run-down public housing and on 
public housing waiting lists.
  Finally, the amendment provides for modest reductions in the 
authorizations of various programs, and a modest increase in the 
authorization for the homeless consolidated grant program established 
by the bill. However, let me assure Members that our authorization 
levels for HOME, preservation and property disposition remain well 
above appropriated levels despite the reductions.
  Mrs. ROUKEMA. Madam Chairman, I rise in support of the leadership 
amendment.
  (Mrs. ROUKEMA asked and was given permission to revise and extend her 
remarks.)
  Mrs. ROUKEMA. Madam Chairman, I once again want to commend the 
chairman for his willingness to work with the many Members who have 
brought these proposals to our committee's attention.
  While many of the provisions in this amendment are technical in 
nature, I do want to single out just a few.
  The first is the provision offered by our colleague from Georgia [Mr. 
Collions] which further adds to the public housing rent reform 
proposals included in the bill.
  A second provision was offered by our colleagues Messers. Ridge and 
Kennedy, which clarifies that community action agencies may participate 
in the family self-sufficiency program through partnerships with PHA's.
  A third provision offered by Mr. Rush of Illinois would permit PHA's 
with severe vacancy problems to leverage a portion of their 
modernization funds to raise additional funds for the purpose of 
replacing units which are too old or obsolete to renovate.
  A fourth amendment offered by Mr. Barrett and Mr. Kleczka would 
prohibit communities from using their CBDG funds to pirate businesses 
from other communities if such a move would result in large-scale 
unemployment in the affected area.
  A provision offered by Ms. Kaptur would provide funds for Geno Baroni 
Recognition Awards for outstanding community development activity.
  Mr. Bereuter for his efforts on surplus military property relative to 
the McKinney Homeless Act.
  Again, Madam Chairman, these amendments are welcome additions to the 
base text and should be adopted.

                              {time}  1910

  Mr. SCHUMER. Madam Chairman, I move to strike the last word.
  Madam Chairman, I rise in support of the en bloc amendments and the 
whole bill. Let me say the en bloc amendments touch on many different 
issues. They affect many communities, including my own, and I am 
appreciative to the chairman and the staff, as well as the ranking 
member and the staff, for dealing with the particular problem we have 
there.
  But I would also like to talk a little bit about the bill which the 
en bloc amendment modifies, because time had run out here.
  I am in strong support of this bill. In 1937, the Congress passed for 
the first Federal housing legislation, and today, in 1994, Congress has 
the opportunity to pass the best housing legislation in a very long 
time.
  This important bill has wide support on both sides of the aisle. The 
gentleman from Texas [Mr. Gonzalez], and the gentlewoman from New 
Jersey [Mrs. Roukema], deserve a lot of credit, because they put 
together a bill that will do more for working families and more to 
rebuild public housing than any housing bill since I have come to 
Congress.
  Over the past decade and a half, to put it bluntly, much of public 
housing has gone to the dogs. The projects have become a place of 
terror for their residents. Some projects have become an American 
Bosnia, where senseless, random, capricious violence strikes at any 
given instance. They have become a place of last resort for the 
perpetually unemployed.
  Consider this: In 1983, 49 percent of the families in New York City 
public housing were employed; in 1993, only 32 percent were occupied by 
working families.
  So, H.R. 3838 tries to reverse this ugly slide. There are new 
programs to help working families in public housing and keep working 
families in public housing. The new rent reform provisions will allow 
working families to keep 10 percent of their earned income, instead of 
forking it over to HUD. Unemployed families will have their rents 
frozen for 18 months once they find a job, giving greater incentive for 
families to struggle out of welfare and into employment. In high rent 
areas, like New York, San Francisco, Chicago, and Los Angeles, public 
housing rents will be capped at fair market level, so that families 
that do succeed will not have to pay more rent than somebody in fair 
market housing, in nonsubsidized housing, which is what has happened up 
to now in certain instances. And we do not want successful working 
families to leave public housing. Public housing has always succeeded 
when there has been a mix. We lost that vision in the eighties, and we 
are here to restore it.
  I again want to thank the chairman and the gentlewoman from New 
Jersey for their leadership and vision in this. It is something we have 
worked for for a long time.
  I am particularly proud of the new Community Partnership Act Against 
Crime. That is going to help fight crime in public housing. It could 
use more funding and the formula could be a little better for public 
housing authorities in high crime areas, but it is a lot better than 
the program we have now.
  Other new programs in the bill will waive many PHA's from onerous 
laws, regulations, and paperwork.
  Madam Chairman, it took many years to create the problems that public 
housing has. It is going to take many years to bring it back. Today we 
take the first and most important step. The bill encourages work and 
responsibility, with compassion and fairness. H.R. 3838 is a turning 
point for Federal housing programs, and deserves the support of every 
Member in the House.
  Mr. BEREUTER. Madam Chairman, I move to strike the requisite number 
of words.
  Madam Chairman, this Member rises in support of the en bloc 
leadership amendment and commends the distinguished chairman of the 
Banking Committee, Mr. Gonzalez, and the distinguished ranking member 
of the Housing Subcommittee, Mrs. Roukema, for their efforts in 
bringing H.R. 3838 and this amendment before the House today. This en 
bloc amendment includes this Member's proposed amendment to the 
McKinney Act. This Member's amendment would create a new section to the 
McKinney Homeless Act to govern military base closing redevelopment. 
This Member believes this amendment will provide greater benefit to the 
local community, the economy and the homeless than is currently 
available under the McKinney Act.
  As many of this Member's colleagues know, under current provisions, 
the homeless providers are given priority for redeveloping all 
facilities made available by a base closure. While providing for the 
homeless is an honorable and needed mission, the current McKinney Act 
ignores the extreme economic hardship thrust upon a community when the 
military targets a base for closure.
  With the passage of this amendment, communities and local 
redevelopment authorities will be given the first priority and the 
initial opportunity to develop a plan which accommodates all interests 
in the reuse of a military base facility. This amendment will provide 
an opportunity for local communities to renew the local economy, create 
jobs, provide for the homeless, and survive the economic devastation of 
a military base closing.
  If the goals of this Member's amendment are met, the military bases 
which are closed by the Department of Defense will never be screened 
under the McKinney Act and instead will be placed into a reuse plan 
developed by the local community which will be to the benefit of all, 
instead of concentrating all available resources on one segment of the 
community--the homeless.
  This Member's amendment reserves the property of a closing military 
base for 1 year while the local community develops a comprehensive 
reuse plan for the property which will include a reasonable level of 
property or other assistance to the homeless in the community. The plan 
is then submitted to the Department of Defense and the Department of 
Housing and Urban Development for approval.
  HUD then has 30 days to determine if the needs of the homeless are 
reasonably met. If HUD determines that the plan does not adequately 
meet the needs of the homeless, the local redevelopment authority then 
has 6 months to alter the plan so that it does meet the needs of the 
homeless. The Department of Defense will then use this plan as the 
preferred redevelopment plan for a local community.
  Once the successful reuse plan is in place and operating, the 
property will be transferred to the local entities designated under the 
reuse plan, completely eliminating the Federal Government from 
interfering with local development. Yet, this Member's amendment 
preserves the spirit of McKinney Act. Local providers of homeless 
assistance will be guaranteed a role in the redevelopment plan which 
will provide for homeless assistance based upon the needs of the 
community. This Member believes this amendment will bring a fair, 
rational, and economically realistic approach to military base 
redevelopment and asks for your support of H.R. 3838.
  Mr. VENTO. Madam Chairman, will the gentleman yield?
  Mr. BEREUTER. I yield to the gentleman from Minnesota.
  Mr. VENTO. Madam Chairman, I was going to commend the gentleman for 
his work on this, and I appreciate him withdrawing the amendment at the 
committee level, because it was very confusing. It was late in the day.
  I want to thank the Committee on Armed Services and the Committee on 
Government Operations as well as our own staff and members for their 
work on it. I thank the gentleman for his positive contribution.
  Mr. BEREUTER. Madam Chairman, I thank the gentleman. Because of the 
gentleman's history of working on homeless issues, his commendations 
are particularly appreciated.
  Madam Chairman, I would like to engage in a colloquy with the 
chairman and the ranking member relating to the Durbin amendment that 
will be part of the en bloc.
  The Durbin amendment kind of took this gentleman by surprise. It does 
relate to the direct loan program, the 515 program, for multi-unit 
housing, which is the only 515 program that exists. But also under this 
en bloc amendment is this gentleman's proposal to create a 
demonstration 2-year loan guarantee program under the 515 program.
  Now, the gentleman from Illinois, Chairman Durbin, properly pointed 
out that the abuses which were highlighted during the study that the 
Appropriations Subcommittee took only looked at the 515 program, and 
that is the direct loan program. That is the only one that exists at 
this point.
  The CHAIRMAN. The time of the gentleman from Nebraska [Mr. Bereuter] 
has expired.
  (By unanimous consent, Mr. Bereuter was allowed to proceed for 2 
additional minutes.)
  Mr. BEREUTER. Madam Chairman, I am concerned that if the eligibility 
requirements which will be put in place through his amendment go into 
effect on the 515 demonstration program for the direct loan guarantee 
program, it will not permit the demonstration program to work.
  It is my expectation, given short resources, that under the Durbin 
amendment, almost all of the existing 515 program will go only to low-
income areas. That is appropriate, I suppose, given short resources. 
But it does seem to me the loan guarantee program, if we can show it 
works well in 2 years, can properly be then delegated to other areas of 
the country that are not economically depressed, since we will not be 
making a significant outlay of Federal funds, but will only be covering 
any defaults. And based upon the experience of the 502 program, the 
loan guarantee program, that default rate is only 1.58 and going down.
  So I would ask the chairman, would it be his understanding that the 
Durbin amendment would not apply to the demonstration program that is 
also now being created by the same en bloc amendment?

                              {time}  1920

  That is my understanding, that it does not. And whatever difficulties 
the gentleman, who let me say has considerable expertise in this area, 
feels, there is no problem that I can see we cannot work out.
  Mr. BEREUTER. Madam Chairman, I thank the gentleman for that 
assurance.
  Mrs. ROUKEMA. Madam Chairman, will the gentleman yield?
  Mr. BEREUTER. I yield to the gentlewoman from New Jersey.
  Mrs. ROUKEMA. Madam Chairman, I would be happy to concur with the 
chairman. That certainly is not the intention. The gentleman is quite 
correct in the point that he has made concerning the potential for 
conflict there. But it is my understanding that the language is such 
that that conflict would not come about. I would be happy to work with 
the gentleman in the future, if there should be any loophole. But I do 
not believe, I know for a certainty that that should not be a problem.
  Mr. BEREUTER. I thank the gentlewoman for her assurances. Since the 
515 Durbin amendment and this, an original initiative in the bill are 
being created now, they should be simultaneous and not affected.
  Ms. KAPTUR. Madam Chairman, I move to strike the requisite number of 
words.
  Madam Chairman, I rise in support of the Housing and Community 
Development authorization bill on the floor today and commend the 
gentleman from Texas for bringing forward this measure which addresses 
the housing and community development needs of our Nation.
  Included in the en bloc amendment offered by the gentleman from Texas 
is an amendment which establishes Geno Baroni Recognition Awards. This 
amendment pays tribute to Msgr. Geno Baroni, a man of firsts.
  Msgr. Geno Baroni, former Assistant Secretary to the Department of 
Housing and Urban Development, was the first Catholic priest ever to 
hold such an office in the Federal Government.
  Msgr. Geno Baroni was also the first Catholic priest to march in the 
1965 Selma, AL, civil rights demonstration.
  Msgr. Baroni was a fighter for ordinary people, who believed 
passionately that real change begins with the people working at the 
community level. It was in the neighborhoods of America that he 
committed his life's work. Working with blacks, ethnics, Hispanics, and 
other groups, Msgr. Baroni urged people to celebrate their differences 
and work together to form coalitions to pursue their common agenda--
creating a livable and sustainable community. His vision equated the 
possibility for urban revitalization with localizing efforts to 
preserve and revitalize America's neighborhoods. Msgr. Baroni well 
understood what the vital centers of our country were and are--
America's neighborhoods. Involving neighborhood residents, in 
partnership with the public and private sectors, was essential in his 
community improvement vision. 1994 marks the 10 year anniversary of his 
death. In commemoration of his lifetime commitment to working to 
preserve and improve America's urban communities, the establishment of 
the Geno Baroni Recognition Awards recognize and support organizations 
committed to Msgr. Baroni's vision of urban revitalization.
  The Geno Baroni Recognition Awards in memory of their namesake would 
fund and facilitate neighborhood self-help. These would build upon the 
existing capacity building program under section IV of the HUD 
Demonstration Act of 1993. Capacity building funds currently provide 
direct assistance to community-based organizations, enabling them to 
enhance their technical and administrative capabilities. Building upon 
the goals of capacity building, the Geno Baroni Recognition Awards will 
recognize and commend the successes of nonprofit organizations who have 
been instrumental in community development. By providing $50,000 awards 
to selected community development organizations, the Geno Baroni 
Recognition Awards will implement the dual goals of Msgr. Baroni: 
First, facilitating neighborhood self-help; and second, supporting 
organizations who know best how to tackle neighborhood revitalization 
by involving the people who live in them.
  A need does exist for urban neighborhoods and rural areas to become 
self-sustaining parts of a productive economy. And the Geno Baroni 
Recognition Awards will bring national attention and monetary 
compensation to successful self-help organizations that have not only 
addressed that need, but are working toward effective strategies to 
restore economic vitality to America's neighborhoods. The Geno Baroni 
Recognition Awards will facilitate training and other forms of capacity 
building assistance to improve and expand the ability of community 
organizations to carry out housing, economic development, youth 
development, family support, community service and other eligible 
activities by people living in those neighborhoods.
  Msgr. Geno Baroni was instrumental in drawing national attention to 
the plight of America's neighborhoods. He spent a lifetime working to 
build new self-help initiatives to ameliorate the intractable problems 
that stifle human potential in many of America's neighborhood 
communities. It is the value and needs of these neighborhoods that have 
long been neglected, and that neglect has resulted in neighborhoods and 
people who have been both alienated and unorganized. Msgr. Baroni 
challenged Government while at HUD ``to work for and with people.'' He 
believed and asserted that ``neighborhoods are the building blocks of 
cities and towns.'' I urge my colleagues to honor the vision of the 
this remarkable man to further open the door to neighborhood self-help, 
by recognizing those groups who work at the source of urban 
revitalization--those in the neighborhoods themselves. I urge you to 
support the passage of the en bloc amendment.
  Mr. BAKER of Louisiana. Madam Chairman, I move to strike the 
requisite number of words.
  Madam Chairman, I rise to speak briefly to an important amendment 
included in the leadership provision which has been of extreme concern 
to me and to those who are involved in a relationship with the Federal 
Home Loan Bank System. The Federal Home Loan Bank is a credit window 
for many thrift savings and loans and small banks across the country 
who serve the credit needs of many rural communities and inner cities 
as well.
  Under current regulatory provisions, there is a law which blocks the 
expansion of banking participation in the Federal Home Loan System. 
Simply stated, unless some regulatory relief is granted, there is the 
potential that access to credit important to those in need in rural and 
inner city areas may be inhibited by the unfortunate effect of this 
regulatory provision.
  Through the leadership of the chairman and the ranking member, an 
important amendment has been provided in this leadership proposal which 
will ensure that over the coming months, that this credit allocation 
will not occur. Further, the gentleman from California [Mr. McCandless] 
has counseled with me on this important matter and pointed out some 
concerns about the effective date of the original Baker proposal.
  Accordingly, we have made changes in that date to accommodate his 
observations and concerns.
  With the effective change now made by the McCandless modification, I 
am confident that we are moving in the right policy direction, that the 
adoption of the Baker amendment will ensure continued access to credit 
in rural communities and inner cities, and I wish to commend the 
leadership for their cooperation and courtesies in making this 
procedural change necessary.
  Mr. BISHOP. Madam Chairman, I move to strike the requisite number of 
words.
  Madam Chairman, I rise in support of the en bloc amendments and in 
support of the bill.
  I would like to thank the chairman, the ranking member, the members 
of the committee for an outstanding work product in the form of H.R. 
3838. I certainly support their efforts.
  We often hear from persons who are working hard and doing the right 
things, yet somehow they cannot seem to get ahead. This is often caused 
by disincentives and unintended consequences that are built into the 
very systems that are designed to help those who need a hand up.
  A few months ago, I met a woman in Georgia named Judy who told me of 
her frustrating experience with our Nation's system of public housing. 
In an attempt to improve herself, Judy earned her GED. She completed 
job training in the JPTA Program, and she completed the Georgia PECH 
Program, our Positive Employment in Community Help Program designed to 
help give job training to those on welfare.
  She was thrilled when she began to work at a job after completing all 
of those programs. She was taking pride in her accomplishments, but 
unfortunately, when she went to work, her rent in public housing 
doubled. When it came time to pay the bills, she found that her 
paycheck did not come close to making up the rent increase and the 
other losses of benefits because she had started to work.
  Judy was angry and discouraged. She was, not to mention, upset 
because of her difficulty in being able to pay the rent. She is not 
alone. Thousands of families are forced to remain in a cycle of 
dependence because the system not only fails to encourage but actually 
penalizes their choice of work.
  Judy's story inspired me to join with the gentlewoman from 
California, Ms. Waters, to introduce legislation that would remove one 
of the disincentives to work that is present in our public assistance 
system.

                              {time}  1930

  Our legislation will restructure public housing rent schedules so 
working people like Judy will not suffer for their initiatives, and the 
funding agencies will begin to benefit from the savings that will be 
produced.
  We would like to thank the committee, the chairman, and the ranking 
member for incorporating the provisions of this legislation into H.R. 
3838.
  Instead of the current system, which rewards unemployment with an 
unearned income credit, this proposal will give working families an 
earned income deduction of 20 percent of their rent. An additional 10 
percent deduction will be given to two-parent working families, 
encouraging family stability.
  There will also be ceilings on rent to keep them closer to fair 
market rates, and income exclusions for working children under 21 who 
live at home.
  Finally, there is a provision for working families to set aside a 
portion of their earnings to save for a down payment on a home of their 
own.
  In addition to empowering people, this proposal will save money at 
the local, the State, and the Federal levels, and provide benefits to 
the private sector as well. At the Federal level alone, savings 
resulting from an AFDC family taking a minimum wage job will be $801 a 
month and will affect many different programs. The cost will be only 
$44 a month, resulting in a savings-to-cost ratio of 18.2 to 1.
  If residents of public housing are encouraged to work, it logically 
follows that there will be more working families in public housing. 
This is good for neighborhoods and communities, including the 
businesses that are located there.
  In addition, Madam Chairman, rent paid by working people decreases 
the burden of public support for operation of our public housing 
authorities, a projected savings of $2 billion at the Federal level.
  Without rent reform, this subsidy is expected to skyrocket in the 
coming years. Residents of public housing need empowerment, not 
penalties.
  This proposal is the kind of reform that goes a long way toward 
erasing the image and the reality of welfare as we know it. This 
legislation provides a hand up and not a handout, but it is only one 
part of the puzzle.
  We thank the committee, the chairman, for taking this and moving 
forward this very, very important piece of rent reform legislation.
  Mr. MORAN. Madam Chairman, I move to strike the requisite number of 
words.
  Madam Chairman, I want to thank the Chairman of this committee, the 
gentleman from Texas [Mr. Gonzalez] for doing a terrific job; and also 
the new staff director of the Subcommittee on Housing and Community 
Development, Nancy Libson, who has done a wonderful job in responding 
to the Members' concerns; and the gentlewoman from New Jersey [Mrs. 
Roukema], who I also had the privilege of working with when I was on 
the Subcommittee on Housing and Community Development of the Committee 
on Banking, Finance and Urban Affairs; and the gentleman from Nebraska 
[Mr. Bereuter] too, if he is in listening distance. I want him to know 
I appreciate particularly the amendment he included in this bill, and 
the specific amendment the chairman has included with regard to title 5 
of the McKinney Act.
  Alexandria, VA, currently provides homeless shelters at a rate of 
four times what the average is for other jurisdictions in the 
Washington Metropolitan Area. Yet, title 5 of the McKinney Act would 
have usurped the local jurisdiction's authority over the land within 
their boundary, and have required them to accept any amount of homeless 
beds, even for organizations that proposed a project that was grossly 
disproportional to what Alexandria should have been expected to accept, 
and what its resources could have accommodated.
  Madam Chairman, what will happen now is that the plan that the 
citizens of Alexandria have worked on for three years, which is a mixed 
use development, will be able to be implemented without interference, 
and it is clearly the kind of plan that is consistent with the 
objectives of the Federal Government and its deference to local 
prerogatives.
  I am very pleased, Madam Chairman, that this is respected in this 
law, and particularly that Alexandria was specifically accommodated.
  I want to thank the committee also for raising the FHA loan limits. 
That is going to provide more homes for thousands more families. There 
are some other changes, too, that deserve mentioning.
  Broadening the income range under which the working poor may continue 
to reside in publicly assisted housing is important. I support the 
changes that were made to expand the grounds for eviction for criminal 
activity to any activity that threatens the health, safety, or right to 
peaceful enjoyment of the premises by other residents and public 
housing employees.

  We had a specific situation in Alexandria when I was mayor where we 
lost a police officer tragically because of the prevalence of drug 
dealing in public housing, and it is something I am going to continue 
to push for, to clamp down on that. In fact, while we are addressing 
that, I wish we could address it to a greater extent.
  I would hope that perhaps we could expand it to include publicly 
assisted housing, and also drop the language that restricts the 
application only to property that is on or near the premises, because 
drug dealers will find what those geographic boundaries are and then 
simply move across the street and deal drugs.
  I understand the concerns that we have for civil rights, and we want 
to be fair, but it is an area where good, progressive people have very 
legitimate concerns that too often public housing is a haven for drug 
dealers, and it is not fair to the other residents.
  In fact, I would hope maybe we could even have a field hearing 
sometime in Northern Virginia, which might not be too expensive. It is 
certainly accessible. Maybe we could hear from some people who are 
impacted, particularly by some of the publicly assisted housing, and 
get some of their recommendations and hear their concerns and 
frustrations.
  Madam Chairman, this is a good bill. It does the right thing. It 
reflects the commitment of its chairman to good quality, safe and 
sanitary housing for who deserve it and more in need of it. I thank the 
gentleman from Texas [Mr. Gonzalez] very much.
  Mr. GONZALEZ. Madam Chairman, will the gentleman yield?
  Mr. MORAN. I yield to the gentleman from Texas.
  Mr. GONZALEZ. The gentleman will recall that the subcommittee went to 
Alexandria at the time he was a mayor and had a very extensive, all-day 
hearing, and we were just waiting to get an invitation. We will be 
there again.
  Even though we have lost the membership of this very valuable member 
of the Subcommittee of Housing and Community Development of the 
Committee on Banking, Finance and Urban Affairs, he has never ceased to 
be most cooperative and helpful, and constructive in his help.
  Mr. MORAN. Mr. Chairman, I greatly appreciate those words.
  I also appreciate the commitment to have a field hearing in 
Alexandria, Virginia. I thank the Chairman very much, and particularly 
for exempting Alexandria from Title 5 of the McKinney Act.
  Mr. BARCIA of Michigan. Madam Chairman, I move to strike the 
requisite number of words.
  Madam Chairman, I rise in support of the en bloc amendments to the 
bill. Madam Chairman, I rise to discuss some of the problems that we 
are having with the operation of the Section 8 housing program, 
problems that I know that the distinguished chairman of the Committee 
on Banking, Finance and Urban Affairs, the gentleman from Texas [Mr. 
Gonzalez], has tried to address in this bill.
  In the City of Saginaw, there are Section 8 housing complexes known 
as the Bancroft and Eddy Buildings. They have been in service to their 
tenants since the early 1980s, and represent a deal that looked good at 
the time, but since have turned into a tremendously bad investment.
  The people who live in these buildings live in conditions that no one 
should have to live in. Repairs and basic maintenance have been sorely 
lacking, and the attention that news reports have brought to this 
matter has enabled the Department of Housing and Urban Development and 
the Michigan State Housing Development Authority to take some action to 
correct these problems.
  However, these buildings also charge rents that, while meeting the 
economic conditions that existed when the buildings were developed, 
require the taxpayer today to subsidize exorbitant rents at nearly 
three times the average in Saginaw County, three times the average rent 
for buildings that people would not live in if they had a choice.
  The chairman of the committee and Deputy Assistant Secretary for 
Multi-Family Housing, Helen Dunlop, have been most understanding of our 
situation.

                              {time}  1940

  They have worked with me to try to find a solution to the problem 
that we have in Saginaw, that I dare say exists in other section 8 
programs around the Nation.
  This bill contains provisions that will require mortgages on section 
8 properties to be refinanced at today's lower rates when such 
refinancing is in the best interests of the taxpayer. This will help 
reduce rents in section 8 properties. It remains to be seen whether 
this provision will help Bancroft-Eddy. I certainly am hopeful, but we 
need to continue to monitor and work with the committee on this matter.
  The situation in Saginaw is so unacceptable to the public that the 
city of Saginaw has begun work on a proposal to buy out the complex and 
to run it themselves at a lower monthly rental rate. I have submitted 
the city's proposal to the committee and to HUD to find a way to make 
it happen. I am encouraged by the cooperation provided through 
Assistant Secretary Dunlap's leadership and am very encouraged by her 
willingness to meet with the appropriate State and local officials in 
the near future.
  Madam Chairman, we have many programs that are well intended. Some 
work the way we want and others fail to effectively accomplish our 
goals. We have to admit these failures and move on. That is what I want 
to see happen with Bancroft-Eddy in my district and that is the goal 
towards which I will continue to work with HUD, local officials, the 
gentleman from Texas [Mr. Gonzalez], the distinguished Chair of the 
Committee on Banking, Finance and Urban Affairs and the members of the 
House Committee on Banking, Finance and Urban Affairs. I would like to 
take a moment to express my gratitude to the gentleman from Texas [Mr. 
Gonzalez], the distinguished Chair, for his sensitivity to our problem 
in the fifth district of Michigan and for the language which has been 
included in the en bloc amendments, which will help us address the 
exorbitant rent situation that we have in Michigan.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Texas [Mr. Gonzalez].
  The amendment was agreed to.


                   amendments offered by mr. gonzalez

  Mr. GONZALEZ. Madam Chairman, I offer several amendments which 
combine six of the amendments which would have been offered separately. 
They are noncontroversial.
  The CHAIRMAN. The Clerk will report the amendments.
  The Clerk read as follows:

       Amendments offered by Mr. Gonzalez:


                    amendment offered by mr. durbin

       Page 387, after line 3, insert the following new 
     subsections:
       (g) Repeal of Prohibitions.--Section 515 of the Housing Act 
     of 1949 is amended by striking subsection (z).
       (h) Location of Projects.--Section 532 of the Housing Act 
     of 1949 (42 U.S.C. 1490l) is amended--
       (1) in subsection (a), by inserting ``other than assistance 
     under section 515'' after ``in making assistance''; and
       (2) by adding at the end the following new subsection:
       ``(c) Allocation of Section 515 Loans.--
       ``(1) Procedure.--The Secretary shall make assistance under 
     section 515 available pursuant to an objective procedure 
     established by the Secretary, under which the Secretary shall 
     identify counties and communities having the greatest need 
     for such assistance and designate such counties and 
     communities to receive such assistance. Under such procedure, 
     the Secretary shall use objective measures to determine the 
     need for rental housing assistance, which may include the 
     incidence of poverty, substandard housing, lack of mortgage 
     credit, lack or insufficient amount of affordable housing, 
     and other factors demonstrating a need for affordable 
     housing.
       ``(2) Information.--The Secretary shall use information 
     from the decennial censuses of the United States, relevant 
     comprehensive affordable housing strategies under section 105 
     of the Cranston-Gonzalez National Affordable Housing Act, and 
     other reliable sources obtained by the Secretary which 
     demonstrate the need for affordable rental housing in rural 
     areas.
       ``(3) Designation.--A designation under paragraph (1) shall 
     not be effective for a period of more than 3 years, but may 
     be renewed by the Secretary under the procedure under 
     paragraph (1). The Secretary shall cause to be published in 
     the Federal Register a list of areas designated under 
     paragraph (1) and a reasonable timetable for submission of 
     preapplications. The Secretary shall take such other 
     reasonable actions as the Secretary considers appropriate to 
     notify the public of such designations.''.


                     amendment offered by mr. orton

       Page 291, after line 7, insert the following new section 
     (and redesignate subsequent sections and any references to 
     such sections, and conform the table of contents, 
     accordingly):

     SEC. 405. CALCULATION OF DOWNPAYMENT.

       Section 203(b)(2) of the National Housing Act (12 U.S.C. 
     1709(b)(2)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) except as otherwise provided in this paragraph (2), 
     not in excess of--
       ``(i) in the case of a mortgage for a property with an 
     appraised value equal to or less than $50,000, 98.75 percent 
     of the appraised value of the property,
       ``(ii) in the case of a mortgage for a property with an 
     appraised value in excess of $50,000 but not in excess of 
     $125,000, 97.65 percent of the appraised value of the 
     property,
       ``(iii) in the case of a mortgage for a property with an 
     appraised value in excess of $125,000, 97.15 percent of the 
     appraised value of the property, or
       ``(iv) notwithstanding clauses (ii) and (iii), in the case 
     of a mortgage for a property with an appraised value in 
     excess of $50,000 and which is located in a State for which 
     the average closing cost exceeds 3.25 percent of the average, 
     for the State, of the sale price of properties located in the 
     State for which mortgages have been executed, 97.75 percent 
     of the appraised value of the property,

     plus the amount of the mortgage insurance premium paid at the 
     time the mortgage is insured.'';
       (2) in the 1st sentence of the matter following 
     subparagraph (B), by inserting before the period at the end 
     the following: ``, and the term `average closing cost' means, 
     with respect to a State, the average, for mortgages executed 
     for properties that are located within the State, of the 
     total amounts (as determined by the Secretary) of initial 
     service charges, appraisal, inspection, and other fees (as 
     the Secretary shall approve) that are paid in connection with 
     such mortgages'';
       (3) by striking the 2d sentence of the matter following 
     subparagraph (B); and
       (4) in penultimate undesignated paragraph--
       (A) in the 2d sentence, by striking ``the preceding 
     sentence'' and inserting ``this subsection''; and
       (B) by striking the 1st sentence.


                   amendment offered by ms. shepherd

       Page 423, after line 20, insert the following new section 
     (and redesignate subsequent sections and any references to 
     such sections, and conform the table of contents, 
     accordingly):

     SEC. 602. DEFINITION OF METROPOLITAN CITY.

       Section 102(a)(4) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5302(a)(4)) is amended--
       (1) in the second sentence, by striking ``2 years'' and 
     inserting ``1 year after September 30, 1989,''; and
       (2) by striking the fifth sentence and inserting the 
     following new sentence: ``Notwithstanding that the population 
     of a unit of general local government was included, after 
     September 30, 1989, with the population of an urban county 
     for purposes of qualifying for assistance under section 106, 
     the unit of general local government may apply for assistance 
     under section 106 as a metropolitan city if the unit meets 
     the requirements of the second sentence of this paragraph.''.


                   amendment offered by mr. traficant

       Page 240, strike line 23 and all that follows through page 
     241, line 4, and insert the following new subsection:
       (d) Notification.--Subparagraph (C) of section 106(c)(5) of 
     the Housing and Urban Development Act of 1968 is amended to 
     read as follows:
       ``(C) Notification.--Notification under subparagraph (A) 
     shall not be required with respect to any loan for which the 
     eligible homeowner pays the amount overdue before the 
     expiration of the 45-day period under subparagraph 
     (B)(ii).''.


                   amendment offered by mr. greenwood

       Page 13, line 7, before the period insert the following: 
     ``, except that in the case of any public housing agency 
     whose board of directors or other governing body consists of 
     5 members, not less than 1 member shall be a resident of a 
     housing unit administered or assisted by the agency''.


                   amendment offered by mr. traficant

       Page 478, after line 23, insert the following new section 
     (and conform the table of contents accordingly):

     SEC. 723. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

       (a) In General.--It is the sense of the Congress that, to 
     the greatest extent practicable, all equipment and products 
     purchased with amounts made available under this Act should 
     be American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     amounts made available under this Act, the head of each 
     Federal agency shall, to the greatest extent practicable, 
     provide to such entity a notice describing the statement of 
     the sense of the Congress under subsection (a).

  Mr. GONZALEZ (during the reading). Madam Chairman, I ask unanimous 
consent that the amendments be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  Mr. GONZALEZ. Madam Chairman, as I was saying, the first of the six 
is the amendment of the gentleman from Illinois [Mr. Durbin], chairman 
of the Subcommittee on Appropriations on Rural Housing or the Farmers 
Home Administration housing programs, to allow the selection process of 
the section 515 program.
  An amendment by the gentleman from Utah [Mr. Orton], a very 
distinguished member of our committee and subcommittee, to simplify the 
down payment calculation for FHA insurance, a very constructive offer.
  An amendment by the gentlewoman from Utah [Ms. Shepherd] for the 
eligibility for CDBG, the Community Development Block Grant Program, 
after 1 year for a community outside of Salt Lake, West Jordan, UT.
  Two amendments by the gentleman from Ohio [Mr. Traficant] one on home 
ownership counseling which he has long endorsed since his freshman year 
in the House, and the Traficant amendment known as ``Buy American.''
  The last and sixth, an amendment offered by the gentleman from 
Pennsylvania [Mr. Greenwood] on residents on public housing authority 
boards.
  Madam Chairman, these, as I repeat, are noncontroversial, they are 
constructive, they add to the strength of our program, and I am quite 
privileged to offer them en bloc.
  Mrs. ROUKEMA. Madam Chairman, I move to strike the last word.
  Madam Chairman, I support the en bloc amendments. I thank 
particularly the individual Members who have made these contributions, 
those as identified by the chairman: The gentleman from Ohio [Mr. 
Traficant]; the gentleman from Utah [Mr. Orton]; the gentleman from 
Illinois [Mr. Durbin]; the gentlewoman from Utah [Ms. Shepherd]; and 
the gentleman from Pennsylvania [Mr. Greenwood].
  Madam Chairman, I would like to make a reference, however, to one of 
the particular amendments which is the Orton amendment. I have had 
longstanding concerns about the FHA and the liability and the soundness 
of the program. I would like to note for the Record that Secretary 
Retsinas has send us a letter. By the way, for background for the 
Members, the gentleman from Utah [Mr. Orton] proposed this amendment in 
committee and it was withdrawn because concerns were expressed about 
whether or not it would affect the safety and soundness of the Fund, 
the Insurance Fund.
  Madam Chairman, I have a letter here from Assistant Secretary for 
Housing, Nicolas Retsinas, that is the basis for my concurrence here. I 
will continue to be a watchdog and as I know the committee will be on 
these issues, but with the concurrence with Secretary Retsinas and the 
concurrence of the advice they receive from Price-Waterhouse.
  Madam Chairman, I include the letter from Secretary Retsinas as 
follows:

                                        U.S. Department of Housing


                                        and Urban Development,

                                    Washington, DC, July 21, 1994.
     Hon. Jim Leach,
     Ranking Minority Member, Committee on Banking, Finance and 
         Urban Affairs,
     House of Representatives, Washington, DC.
       Dear Mr. Leach: We have been provided an opportunity by 
     Congressman Orton to review his proposed amendment which sets 
     forth a new method for calculating the loan-to-value ratios 
     for the Department's basic home mortgage insurance program 
     authorized under Section 203(b) of the National Housing Act.
       We concur with his assessment that the new proposal will 
     simplify the process for calculating the maximum mortgage 
     amount available on single family properties and fully 
     support it. We are advised by Price Waterhouse that they 
     believe the implementation of these ratios would have no 
     significant impact on capital accumulation in the Mutual 
     Mortgage Insurance Fund and the Department's achievement of 
     the FY 2000 target of two percent.
       I have advised Chairman Gonzalez, Mrs. Roukema, and Mr. 
     Orton of our support for this amendment.
           Sincerely yours,
                                              Nicolas P. Retsinas,
     Assistant Secretary for Housing-Federal Housing Commissioner.

  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Texas [Mr. Gonzalez].
  The amendments were agreed to.
  Mr. GONZALEZ. Madam Chairman, I move that the Committee do now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Hochbrueckner) having assumed the chair, Mrs. Thurman, Chairman of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill, (H.R. 3838) to 
amend and extend certain laws relating to housing and community 
development, and for other purposes, had come to no resolution thereon.

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