[Congressional Record Volume 141, Number 193 (Wednesday, December 6, 1995)]
[House]
[Pages H14112-H14136]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 2099, DEPARTMENTS OF VETERANS AFFAIRS AND 
HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS 
                               ACT, 1996

  Mr. LEWIS of California submitted the following conference report and 
statement on the bill (H.R. 2099) making appropriations for the 
Departments of Veterans Affairs and Housing and Urban Development, and 
for sundry independent agencies, boards, commissions, corporations, and 
offices for the fiscal year ending September 30, 1996, and for other 
purposes.

                  Conference Report (H. Rept. 104-384)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     2099) ``making appropriations for the Departments of Veterans 
     Affairs and Housing and Urban Development, and for sundry 
     independent agencies, boards, commissions, corporations, and 
     offices for the fiscal year ending September 30, 1996, and 
     for other purposes,'' having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the Senate recede from its amendments numbered 1, 2, 
     3, 5, 12, 14, 20, 24, 43, 62, 67, 75, 82, 86, 87, 89, 90, 91, 
     92, 98, 111, 112, and 116.
       That the House recede from its disagreement to the 
     amendments of the Senate numbered, 6, 7, 10, 11, 17, 19, 21, 
     22, 26, 27, 28, 29, 30, 34, 35, 38, 39, 40, 42, 44, 45, 46, 
     47, 49, 50, 51, 52, 53, 54, 55, 56, 57, 59, 60, 61, 64, 69, 
     73, 78, 79, 84, 85, 88, 93, 95, 96, 97, 99, 100, 101, 103, 
     106, 107, 108, 113, and 115, and agree to the same.
       Amendment numbered 4:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 4, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $16,564,000,000; and the Senate agree to the same.
       Amendment numbered 8:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 8, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: $848,143,000: Provided, That of the amount 
     appropriated and any other funds made available from any 
     other source for activities funded under this heading, except 
     reimbursements, not to exceed $214,109,000 shall be available 
     for General Administration; including not to exceed (1) 
     $2,450,000 for personnel compensation and benefits and 
     $50,000 for travel in the Office of the Secretary, (2) 
     $4,392,000 for personnel compensation and benefits and 
     $75,000 for travel in the Office of the Assistant Secretary 
     for Policy and Planning, (3) $1,980,000 for personnel 
     compensation and benefits and $33,000 for travel in the 
     Office of the Assistant Secretary for Congressional Affairs, 
     and (4) $3,500,000 for personnel compensation and benefits 
     and $100,000 for travel in the Office of the Assistant 
     Secretary for Public and Intergovernmental Affairs: Provided 
     further, That during fiscal year 1996, notwithstanding any 
     other provision of law, the number 

[[Page H 14113]]
     of individuals employed by the Department of Veterans Affairs (1) in 
     other than ``career appointee'' positions in the Senior 
     Executive Service shall not exceed 6, and (2) in schedule C 
     positions shall not exceed 11: Provided further, That not to 
     exceed $6,000,000 of the amount appropriated shall be 
     available for administrative expenses to carry out the direct 
     and guaranteed loan programs under the Loan Guaranty Program 
     Account; and the Senate agree to the same.
       Amendment numbered 9:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 9, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $136,155,000; and the Senate agree to the same.
       Amendment numbered 13:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 13, and agree to the same 
     with an amendment, as follows:
       Delete the matter proposed by said amendment and on page 16 
     of the House engrossed bill, H.R. 2099, delete the language 
     on lines 9-18.
       And the Senate agree to the same.
       Amendment numbered 15:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 15, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum named in said amendment, insert: 
     $4,500,000; and the Senate agreed to the same.
       Amendment numbered 16:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 16, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
       For assistance under the United States Housing Act of 1937, 
     as amended (``the Act'' herein) (42 U.S.C. 1437), not 
     otherwise provided for, $10,155,795,000, to remain available 
     until expended: Provided, That of the total amount provided 
     under this head, $160,000,000 shall be for the development or 
     acquisition cost of public housing for Indian families, 
     including amounts for housing under the mutual help 
     homeownership opportunity program under section 202 of the 
     Act (42 U.S.C. 1437bb): Provided further, That of the total 
     amount provided under this head, $2,500,000,000 shall be for 
     modernization of existing public housing projects pursuant to 
     section 14 of the Act (42 U.S.C. 1437l), including up to 
     $20,000,000 for the inspection of public housing units, 
     contract expertise, and training and technical assistance, 
     directly or indirectly, under grants, contracts, or 
     cooperative agreements, to assist in the oversight and 
     management of public and Indian housing (whether or not the 
     housing is being modernized with assistance under this 
     proviso) or tenant-based assistance, including, but not 
     limited to, an annual resident survey, data collection and 
     analysis, training and technical assistance by or to 
     officials and employees of the Department and of public 
     housing agencies and to residents in connection with the 
     public and Indian housing program: Provided further, That of 
     the total amount provided under this head, $400,000,000 shall 
     be for rental subsidy contracts under the section 8 existing 
     housing certificate program and the housing voucher program 
     under section 8 of the Act, except that such amounts shall be 
     used only for units necessary to provide housing assistance 
     for residents to be relocated from existing federally 
     subsidized or assisted housing, for replacement housing for 
     units demolished or disposed of (including units to be 
     disposed of pursuant to a homeownership program under section 
     5(h) or title III of the United States Housing Act of 1937) 
     from the public housing inventory, for funds related to 
     litigation settlements, for the conversion of section 23 
     projects to assistance under section 8, for public housing 
     agencies to implement allocation plans approved by the 
     Secretary for designated housing, for funds to carry out the 
     family unification program, and for the relocation of 
     witnesses in connection with efforts to combat crime in 
     public and assisted housing pursuant to a request from a law 
     enforcement or prosecution agency: Provided further, That of 
     the total amount provided under this head, $4,350,862,000 
     shall be for assistance under the United States Housing Act 
     of 1937 (42 U.S.C. 1437) for use in connection with expiring 
     or terminating section 8 subsidy contracts, such amount shall 
     be merged with all remaining obligated and unobligated 
     balances heretofore appropriated under the heading ``Renewal 
     of expiring section 8 subsidy contracts'': Provided further, 
     That notwithstanding any other provision of law, assistance 
     reserved under the two preceding provisos may be used in 
     connection with any provision of Federal law enacted in this 
     Act or after the enactment of this Act that authorizes the 
     use of rental assistance amounts in connection with such 
     terminated or expired contracts: Provided further, That the 
     Secretary may determine not to apply section 8(o)(6)(B) of 
     the Act to housing vouchers during fiscal year 1996: Provided 
     further, That of the total amount provided under this head, 
     $610,575,000 shall be for amendments to section 8 contracts 
     other than contracts for projects developed under section 202 
     of the Housing Act of 1959, as amended; and $261,000,000 
     shall be for section 8 assistance and rehabilitation grants 
     for property disposition: Provided further, That during 
     fiscal year 1996, the Secretary of Housing and Urban 
     Development may manage and dispose of multifamily properties 
     owned by the Secretary, including the provision for grants 
     from the General Insurance Fund (12 U.S.C. 1735c) for the 
     necessary costs of rehabilitation and other related 
     development costs, and multifamily mortgages held by the 
     Secretary without regard to any other provision of law: 
     Provided further, That 50 per centum of the amounts of budget 
     authority, or in lieu thereof 50 per centum of the cash 
     amounts associated with such budget authority, that are 
     recaptured from projects described in section 1012(a) of the 
     Stewart B. McKinney Homeless Assistance Amendments Act of 
     1988 (Public Law 100-628, 102 Stat 3224, 3268) shall be 
     rescinded, or in the case of cash, shall be remitted to the 
     Treasury, and such amounts of budget authority or cash 
     recaptured and not rescinded or remitted to the Treasury 
     shall be used by State housing finance agencies or local 
     governments or local housing agencies with projects approved 
     by the Secretary of Housing and Urban Development for which 
     settlement occurred after January 1, 1992, in accordance with 
     such section: Provided further, That of the total amount 
     provided under this head, $171,000,000 shall be for housing 
     opportunities for persons with AIDS under title VIII, 
     subtitle D of the Cranston-Gonzalez National Affordable 
     Housing Act; and $65,000,000 shall be for the lead-based 
     paint hazard reduction program as authorized under sections 
     1011 and 1053 of the Residential Lead-Based Hazard Reduction 
     Act of 1992: Provided further, That the Secretary may make up 
     to $5,000,000 of any amount recaptured in this account 
     available for the development of performance and financial 
     systems.
       Of the total amount provided under this head, $624,000,000, 
     plus amounts recaptured from interest reduction payment 
     contracts for section 236 projects whose owners prepay their 
     mortgages during fiscal year 1996 (which amounts shall be 
     transferred and merged with this account), shall be for use 
     in conjunction with properties that are eligible for 
     assistance under the Low Income Housing Preservation and 
     Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency 
     Low-Income Housing Preservation Act of 1987 (ELIHPA): 
     Provided, That prior to July 1, 1996, funding to carry out 
     plans of action shall be limited to sales of projects to non-
     profit organizations, tenant-sponsored organizations, and 
     other priority purchasers: Provided further, That of the 
     amount made available by this paragraph, up to $10,000,000 
     shall be available for preservation technical assistance 
     grants pursuant to section 253 of the Housing and Community 
     Development Act of 1987, as amended: Provided further, That 
     with respect to amounts made available by this paragraph, 
     after July 1, 1996, if the Secretary determines that the 
     demand for funding may exceed amounts available for such 
     funding, the Secretary (1) may determine priorities for 
     distributing available funds, including giving priority 
     funding to tenants displaced due to mortgage prepayment and 
     to projects that have not yet been funded but which have 
     approved plans of action; and (2) may impose a temporary 
     moratorium on applications by potential recipients of such 
     funding: Provided further, That an owner of eligible low-
     income housing may prepay the mortgage or request voluntary 
     termination of a mortgage insurance contract, so long as said 
     owner agrees not to raise rents for sixty days after such 
     prepayment: Provided further, That an owner of eligible low-
     income housing who has not timely filed a second notice under 
     section 216(d) prior to the effective date of this Act may 
     file such notice by March 1, 1996: Provided further, That 
     such developments have been determined to have preservation 
     equity at least equal to the lesser of $5,000 per unit or 
     $500,000 per project or the equivalent of eight times the 
     most recently published fair market rent for the area in 
     which the project is located as the appropriate unit size for 
     all of the units in the eligible project: Provided further, 
     That the Secretary may modify the regulatory agreement to 
     permit owners and priority purchasers to retain rental income 
     in excess of the basic rental charge in projects assisted 
     under section 236 of the National Housing Act, for the 
     purpose of preserving the low and moderate income character 
     of the housing: Provided further, That the Secretary may give 
     priority to funding and processing the following projects 
     provided that the funding is obligated not later than August 
     1, 1996: (1) projects with approved plans of action to retain 
     the housing that file a modified plan of action no later than 
     July 1, 1996 to transfer the housing; (2) projects with 
     approved plans of action that are subject to a repayment or 
     settlement agreement that was executed between the owner and 
     the Secretary prior to September 1, 1995; (3) projects for 
     which submissions were delayed as a result of their location 
     in areas that were designated as a federal disaster area in a 
     Presidential Disaster Declaration; and (4) projects whose 
     processing was, in fact or in practical effect, suspended, 
     deferred, or interrupted for a period of twelve months or 
     more because of differing interpretations, by the Secretary 
     and an owner or by the Secretary and a state or local rent 
     regulatory agency, concerning the timing of filing 
     eligibility or the effect of a presumptively applicable state 
     or local rent control law or regulation on the determination 
     of preservation value under section 213 of LIHPRHA, as 
     amended, if the owner of such project filed notice of intent 
     to extend the low-income affordability restrictions of the 
     housing, or transfer to a qualified purchaser who would 
     extend such restrictions, on or before November 1, 1993: 
     Provided further, That eligible low-income housing shall 
     include properties meeting the requirements of this paragraph 
     with mortgages that are held by a State agency as a result of 
     a sale by the Secretary without insurance, which immediately 
     before the sale would have been eligible low-income housing 
     under LIHPRHA: Provided further, That notwithstanding any 
     other provision of law, subject to the availability of 
     appropriated funds, each unassisted low-income family 
     residing in the housing on the date of prepayment or 
     voluntary termination, and whose rent, as a result of a rent 
     increase occurring no later than one year after the date of 
     the prepayment, exceeds 30 percent 

[[Page H 14114]]
     of adjusted income, shall be offered tenant-based assistance in 
     accordance with section 8 or any successor program, under 
     which the family shall pay no less for rent than it paid on 
     such date: Provided further, That any family receiving 
     tenant-based assistance under the preceding proviso may elect 
     (1) to remain in the unit of the housing and if the rent 
     exceeds the fair market rent or payment standard, as 
     applicable, the rent shall be deemed to be the applicable 
     standard, so long as the administering public housing agency 
     finds that the rent is reasonable in comparison with rents 
     charged for comparable unassisted housing units in the market 
     or (2) to move from the housing and the rent will be subject 
     to the fair market rent of the payment standard, as 
     applicable, under existing program rules and procedures: 
     Provided further, That up to $10,000,000 of the amount made 
     available by this paragraph may be used at the discretion of 
     the Secretary to reimburse owners of eligible properties for 
     which plans of action were submitted prior to the effective 
     date of this Act, but were not executed for lack of available 
     funds, with such reimbursement available only for documented 
     costs directly applicable to the preparation of the plan of 
     action as determined by the Secretary, and shall be made 
     available on terms and conditions to be established by the 
     Secretary: Provided further, That, notwithstanding any other 
     provision of law, effective October 1, 1996, the Secretary 
     shall suspend further processing of preservation applications 
     which do not have approved plans of action.
       Of the total amount provided under this head, $780,190,000 
     shall be for capital advances, including amendments to 
     capital advance contracts, for housing for the elderly, as 
     authorized by section 202 of the Housing Act of 1959, as 
     amended, and for project rental assistance, and amendments to 
     contracts for project rental assistance, for supportive 
     housing for the elderly under section 202(c)(2) of the 
     Housing Act of 1959; and $233,168,000 shall be for capital 
     advances, including amendments to capital advance contracts, 
     for supportive housing for persons with disabilities, as 
     authorized by section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act; and for project rental assistance, 
     and amendments to contracts for project rental assistance, 
     for supportive housing for persons with disabilities as 
     authorized by section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act: Provided, That the Secretary may 
     designate up to 25 percent of the amounts earmarked under 
     this paragraph for section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act for tenant-based assistance, 
     as authorized under that section, which assistance is five-
     years in duration: Provided further, That the Secretary may 
     waive any provision of section 202 of the Housing Act of 1959 
     and section 811 of the National Affordable Housing Act 
     (including the provisions governing the terms and conditions 
     of project rental assistance) that the Secretary determines 
     is not necessary to achieve the objectives of these programs, 
     or that otherwise impedes the ability to develop, operate or 
     administer projects assisted under these programs, and may 
     make provision for alternative conditions or terms where 
     appropriate.


          public housing demolition, site revitalization, and

                       replacement housing grants

       For grants to public housing agencies for the purposes of 
     enabling the demolition of obsolete public housing projects 
     or portions thereof, the revitalization (where appropriate) 
     of sites (including remaining public housing units) on which 
     such projects are located, replacement housing which will 
     avoid or lessen concentrations of very low-income families, 
     and tenant-based assistance in accordance with section 8 of 
     the United States Housing Act of 1937 for the purpose of 
     providing replacement housing and assisting tenants to be 
     displaced by the demolition, $280,000,000, to remain 
     available until expended: Provided, That the Secretary of 
     Housing and Urban Development shall award such funds to 
     public housing agencies by a competition which includes among 
     other relevant criteria the local and national impact of the 
     proposed demolition and revitalization activities and the 
     extent to which the public housing agency could undertake 
     such activities without the additional assistance to be 
     provided hereunder: Provided further, That eligible 
     expenditures hereunder shall be those expenditures eligible 
     under section 8 and section 14 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f and l): Provided further, That 
     the Secretary may impose such conditions and requirements as 
     the Secretary deems appropriate to effectuate the purposes of 
     this paragraph: Provided further, That the Secretary may 
     require an agency selected to receive funding to make 
     arrangements satisfactory to the Secretary for use of an 
     entity other than the agency to carry out this program where 
     the Secretary determines that such action will help to 
     effectuate the purpose of this paragraph: Provided further, 
     That in the event an agency selected to receive funding does 
     not proceed expeditiously as determined by the Secretary, the 
     Secretary shall withdraw any funding made available pursuant 
     to this paragraph that has not been obligated by the agency 
     and distribute such funds to one or more other eligible 
     agencies, or to other entities capable of proceeding 
     expeditiously in the same locality with the original program: 
     Provided further, That of the foregoing $280,000,000, the 
     Secretary may use up to .67 per centum for technical 
     assistance, to be provided directly or indirectly by grants, 
     contracts or cooperative agreements, including training and 
     cost of necessary travel for participants in such training, 
     by or to officials and employees of the Department and of 
     public housing agencies and to residents: Provided further, 
     That any replacement housing provided with assistance under 
     this head shall be subject to section 18(f) of the United 
     States Housing Act of 1937, as amended by section 201(b)(2) 
     of this Act
       And the Senate agree to the same.
       Amendment numbered 18:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 18, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:


             drug elimination grants for low-income housing

       For grants to public and Indian housing agencies for use in 
     eliminating crime in public housing projects authorized by 42 
     U.S.C. 11901-11908, for grants for federally assisted low-
     income housing authorized by 42 U.S.C. 11909, and for drug 
     information clearinghouse services authorized by 42 U.S.C. 
     11921-11925, $290,000,000, to remain available until 
     expended, of which $10,000,000 shall be for grants, technical 
     assistance, contracts and other assistance training, program 
     assessment, and execution for or on behalf of public housing 
     agencies and resident organizations (including the cost of 
     necessary travel for participants in such training) and of 
     which $2,500,000 shall be used in connection with efforts to 
     combat violent crime in public and assisted housing under the 
     Operation Safe Home program administered by the Inspector 
     General of the Department of Housing and Urban Development: 
     Provided, That the term ``drug-related crime'', as defined in 
     42 U.S.C. 11905(2), shall also include other types of crime 
     as determined by the Secretary.
       And the Senate agree to the same.
       Amendment numbered 23:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 23, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $823,000,000; and the Senate agree to the same.
       Amendment numbered 25:
       That the House recede from its disagreement to the 
     amendment of the senate numbered 25, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $50,000,000; and the Senate agree to the same.
       Amendment numbered 31:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 31, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:
       Of the amount provided under this heading, the Secretary of 
     Housing and Urban Development may use up to $53,000,000 for 
     grants to public housing agencies (including Indian housing 
     authorities), nonprofit corporations, and other appropriate 
     entities for a supportive services program to assist 
     residents of public and assisted housing, former residents of 
     such housing receiving tenant-based assistance under section 
     8 of such Act (42 U.S.C. 1437f), and other low-income 
     families and individuals to become self-sufficient: Provided, 
     That the program shall provide supportive services, 
     principally for the benefit of public housing residents, to 
     the elderly and the disabled, and to families with children 
     where the head of household would benefit from the receipt of 
     supportive services and is working, seeking work, or is 
     preparing for work by participating in job training or 
     educational programs: Provided further, That the supportive 
     services shall include congregate services for the elderly 
     and disabled, service coordinators, and coordinated 
     educational, training, and other supportive services, 
     including academic skills training, job search assistance, 
     assistance related to retaining employment, vocational and 
     entrepreneurship development and support programs, 
     transportation, and child care: Provided further, That the 
     Secretary shall require applicants to demonstrate firm 
     commitments of funding or services from other sources: 
     Provided further, That the Secretary shall select public and 
     Indian housing agencies to receive assistance under this head 
     on a competitive basis, taking into account the quality of 
     the proposed program (including any innovative approaches), 
     the extent of the proposed coordination of supportive 
     services, the extent of commitments of funding or services 
     from other sources, the extent to which the proposed program 
     includes reasonably achievable, quantifiable goals for 
     measuring performance under the program over a three-year 
     period, the extent of success an agency has had in carrying 
     out other comparable initiatives, and other appropriate 
     criteria established by the Secretary.
       Of the amount made available under this heading, 
     notwithstanding any other provision of law, $12,000,000 shall 
     be available for contracts, grants, and other assistance, 
     other than loans, not otherwise provided for, for providing 
     counseling and advice to tenants and homeowners both current 
     and prospective, with respect to property maintenance, 
     financial management, and such other matters as may be 
     appropriate to assist them in improving their housing 
     conditions and meeting the responsibilities of tenancy or 
     homeownership, including provisions for training and for 
     support of voluntary agencies and services as authorized by 
     section 106 of the Housing and Urban Development Act of 1968, 
     as amended, notwithstanding section 106(c)(9) and section 
     106(d)(13) of such Act.
       Of the amount made available under this heading, 
     notwithstanding any other provision of law, $15,000,000 shall 
     be available for the tenant opportunity program.
       Of the amount made available under this heading, 
     notwithstanding any other provision of law, $20,000,000 shall 
     be available for youth build program activities authorized by 
     subtitle D of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act, as amended, and such 

[[Page H 14115]]
     activities shall be an eligible activity with respect to any funds made 
     available under this heading.
       And the Senate agree to the same.
       Amendment numbered 32:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 32, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $31,750,000; and the Senate agree to the same.
       Amendment numbered 33:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 33, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
       $1,500,000,000: Provided further, That the Secretary of 
     Housing and Urban Development may make guarantees not to 
     exceed the immediately foregoing amount notwithstanding the 
     aggregate limitation on guarantees set forth in section 
     108(k) of the Housing and Community Development Act of 1974; 
     and the Senate agree to the same.
       Amendment numbered 36:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 36, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows:


                   fair housing and equal opportunity

                        fair housing activities

       For contracts, grants, and other assistance, not otherwise 
     provided for, as authorized by title VIII of the Civil Rights 
     Act of 1968, as amended by the Fair Housing Amendments Act of 
     1988, and for contracts with qualified fair housing 
     enforcement organizations, as authorized by section 561 of 
     the Housing and Community Development Act of 1987, as amended 
     by the Housing and Community Development Act of 1992, 
     $30,000,000, to remain available until September 30, 1997.
       And the Senate agree to the same.
       Amendment numbered 37:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 37, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $962,558,000; and the Senate agree to the same.
       Amendment numbered 41:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 41, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $47,850,000; and the Senate agree to the same.
       Amendment numbered 48:
       That the House receded from its disagreement to the 
     amendment of the Senate numbered 48, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert:
       For the cost of guaranteed loans, as authorized by sections 
     238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 
     and 1735c), including the cost of modifying such loans; 
     $85,000,000, to remain available until expended: Provided, 
     That such costs shall be as defined in section 502 of the 
     Congressional Budget Act of 1974, as amended: Provided 
     further, That these funds are available to subsidize total; 
     and the Senate agree to the same.
       Amendment numbered 58:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 58, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     SEC. 201. EXTEND ADMINISTRATIVE PROVISIONS FROM THE 
                   RESCISSION ACT.

       (a) Public and Indian Housing Modernization.--
       (1) Expansion of use of modernization funding.--Subsection 
     14(q) of the United States Housing Act of 1937 is amended to 
     read as follows:
       ``(q)(1) In addition to the purposes enumerated in 
     subsections (a) and (b), a public housing agency may use 
     modernization assistance provided under section 14, and 
     development assistance provided under section 5(a) that was 
     not allocated, as determined by the secretary, for priority 
     replacement housing, for any eligible activity authorized by 
     this section, by section 5, or by applicable Appropriations 
     Acts for a public housing agency, including the demolition, 
     rehabilitation, revitalization, and replacement of existing 
     units and projects and, for up to 10 percent of its 
     allocation of such funds in any fiscal year, for any 
     operating subsidy purpose authorized in section 9. Except for 
     assistance used for operating subsidy purposes under the 
     preceding sentence, assistance provided to a public housing 
     agency under this section shall principally be used for the 
     physical improvement or replacement of public housing and for 
     associated management improvements, except as otherwise 
     approved by the Secretary. Public housing units assisted 
     under this paragraph shall be eligible for operating 
     subsidies, unless the Secretary determines that such units or 
     projects have not received sufficient assistance under this 
     Act or do not meet other requirements of this Act.
       ``(2) A public housing agency may provide assistance to 
     developments that include units for other than very low-
     income families (`mixed income developments'), in the form of 
     a grant, loan, operating assistance, or other form of 
     investment which may be made to--
       (A) a partnership, a limited liability company, or other 
     legal entity in which the public housing agency or its 
     affiliate is a general partner managing member, or otherwise 
     participates in the activities of such entity; or
       (B) any entity which grants to the public housing agency 
     the option to purchase the development within 20 years after 
     initial occupancy in accordance with section 42(i)(7) of the 
     Internal Revenue Code of 1986, as amended. Units shall be 
     made available in such developments for periods of not less 
     than 20 years, by master contract or by individual lease, for 
     occupancy by low-income families referred from time to time 
     by the public housing agency. The number of such units shall 
     be:
       (i) in the same proportion to the total number of units in 
     such development that the total financial commitment provided 
     by the public housing agency bears to the value of the total 
     financial commitment in the development, or
       (ii) not be less than the number of units that could have 
     been developed under the convention public housing program 
     with the assistance involved, or
       (iii) as may otherwise be approved by the Secretary.
       ``(3) A mixed income development may elect to have all 
     units subject only to the applicable local real estate taxes, 
     notwithstanding that the low-income units assisted by public 
     housing funds would otherwise be subject to section 6(d) of 
     the Housing Act of 1937.
       ``(4) If an entity that owns or operates a mixed-income 
     project under this subsection enters into a contract with a 
     public housing agency, the terms of which obligate the entity 
     to operate and maintain a specified number of units in the 
     project as public housing units in accordance with the 
     requirements of this Act for the period required by law, such 
     contractual terms may provide that, if, as a result of a 
     reduction in appropriations under section 9, or any other 
     change in applicable law, the public housing agency is unable 
     to fulfill its contractual obligations with respect to those 
     public housing units, that entity may deviate, under 
     procedures and requirements developed through regulations by 
     the Secretary, from otherwise applicable restrictions under 
     this Act regarding rents, income eligibility, and other areas 
     of public housing management with respect to a portion or all 
     of those public housing units, to the extent necessary to 
     preserve the viability of those units while maintaining the 
     low-income character of the units, to the maximum extent 
     practicable.''.
       (2) Applicability.--Section 14(q) of the United States 
     Housing Act of 1937. As amended by subsection (a) of this 
     section, shall be effective only with respect to assistance 
     provided from funds made available for fiscal year 1996 or 
     any preceding fiscal year.
       (3) Applicability to IHAs.--In accordance with section 
     201(b)(2) of the United States Housing Act of 1937, the 
     amendment made by this subsection shall apply to public 
     housing developed or operated pursuant to a contract between 
     the Secretary of Housing and Urban Development and an Indian 
     housing authority.
       (b) One-for-One Replacement of Public and Indian Housing.--
       (1) Extended authority.--Section 1002(d) of Public Law 104-
     19 is amended to read as follows:
       ``(d) Subsections (a), (b), and (c) shall be effective for 
     applications for the demolition, disposition, or conversion 
     of homeownership of public housing approved by the Secretary, 
     and other consolidation and relocation activities of public 
     housing agencies undertaken, on, before, or after September 
     30, 1995 and before September 30, 1996.''.
       (2) Section 18(f) of the United States Housing Act of 1937 
     is amended by adding at the end the following new sentence:

     ``No one may rely on the preceding sentence as the basis for 
     reconsidering a final order of a court issued, or a 
     settlement approved by, a court.''.
       (3) Applicability.--In accordance with section 201(b)(2) of 
     the United States Housing Act of 1937, the amendments made by 
     this subsection and by sections 1002 (a), (b), and (c) of 
     Public Law 104-19 shall apply to public housing developed or 
     operated pursuant to a contract between the Secretary of 
     Housing and Urban Development and an Indian housing 
     authority.

     SEC. 202. PUBLIC AND ASSISTED HOUSING RENTS, INCOME 
                   ADJUSTMENTS, AND PREFERENCES.

       (a) Minimum Rents.--Notwithstanding sections 3(a) and 
     8(o)(2) of the United States Housing Act of 1937, as amended, 
     effective for fiscal year 1996 and no later than October 30, 
     1995--
       (1) public housing agencies shall require each family who 
     is assisted under the certificate or moderate rehabilitation 
     program under section 8 of such Act to pay a minimum monthly 
     rent of not less than $25, and may require a minimum monthly 
     rent of up to $50;
       (2) public housing agencies shall reduce the monthly 
     assistance payment on behalf of each family who is assisted 
     under the voucher program under section 8 of such Act so that 
     the family pays a minimum monthly rent of not less than $25, 
     and may require a minimum monthly rent of up to $50;
       (3) with respect to housing assisted under other programs 
     for rental assistance under section 8 of such Act, the 
     Secretary shall require each family who is assisted under 
     such program to pay a minimum monthly rent of not less than 
     $25 for the unit, and may require a minimum monthly rent of 
     up to $50; and
       (4) public housing agencies shall require each family who 
     is assisted under the public housing program (including 
     public housing for Indian families) of such Act to pay a 
     minimum monthly rent of not less than $25, and may require a 
     minimum monthly rent of up to $50.
       (b) Establishment of Ceiling Rents.--
       (1) Section 3(a)(2) of the United States Housing Act of 
     1937 is amended to read as follows:
       ``(2) Notwithstanding paragraph (1), a public housing 
     agency may--
     
[[Page H 14116]]

       ``(A) adopt ceiling rents that reflect the reasonable 
     market value of the housing, but that are not less than the 
     monthly costs--
       ``(i) to operate the housing of the agency; and
       ``(ii) to make a deposit to a replacement reserve (in the 
     sole discretion of the public housing agency); and
       ``(B) allow families to pay ceiling rents referred to in 
     subparagraph (A), unless, with respect to any family, the 
     ceiling rent established under this paragraph would exceed 
     the amount payable as rent by that family under paragraph 
     (1).''.
       (2) Regulations.--
       (A) In general.--The Secretary shall, by regulation, after 
     notice and an opportunity for public comment, establish such 
     requirements as may be necessary to carry out section 
     3(a)(2)(A) of the United States Housing Act of 1937, as 
     amended by paragraph (1).
       (B) Transition rule.--Prior to the issuance of final 
     regulations under paragraph (1), a public housing agency may 
     implement ceiling rents, which shall be not less than the 
     monthly costs to operate the housing of the agency and--
       (i) determined in accordance with section 3(a)(2)(A) of the 
     United States Housing Act of 1937, as that section existed on 
     the day before enactment of this Act;
       (ii) equal to the 95th percentile of the rent paid for a 
     unit of comparable size by tenants in the same public housing 
     project or a group of comparable projects totaling 50 units 
     or more; or
       (iii) equal to the fair market rent for the area in which 
     the unit is located.
       (c) Definition of Adjusted Income.--Section 3(b)(5) of the 
     United States Housing Act of 1937 is amended--
       (1) at the end of subparagraph (F), by striking ``and'';
       (2) at the end of subparagraph (G), by striking the period 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (G) the following:
       ``(H) for public housing, any other adjustments to earned 
     income established by the public housing agency. If a public 
     housing agency adopts other adjustments to income pursuant to 
     subparagraph (H), the Secretary shall not take into account 
     any reduction of or increase in the public housing agency's 
     per unit dwelling rental income resulting from those 
     adjustments when calculating the contributions under section 
     9 for the public housing agency for the operation of the 
     public housing.''.
       (d) Repeal of Federal Preferences.--
       (1) Public housing.--Section 6(c)(4)(A) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is 
     amended to read as follows:
       ``(A) the establishment, after public notice and an 
     opportunity for public comment, of a written system of 
     preferences for admission to public housing, if any, that is 
     not inconsistent with the comprehensive housing affordability 
     strategy under title I of the Cranston-Gonzalez National 
     Affordable Housing Act;''.
       (2) Section 8 existing and moderate rehabilitation.--
     Section 8(d)(1)(A) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
       ``(A) the selection of tenants shall be the function of the 
     owner, subject to the provisions of the annual contributions 
     contract between the Secretary and the agency, except that 
     for the certificate and moderate rehabilitation programs 
     only, for the purpose of selecting families to be assisted, 
     the public housing agency may establish, after public notice 
     and an opportunity for public comment, a written system of 
     preferences for selection that is not inconsistent with the 
     comprehensive housing affordability strategy under title I of 
     the Cranston-Gonzalez National Affordable Housing Act;''.
       (3) Section 8 voucher program.--Section 8(o)(3)(B) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) 
     is amended to read as follows:
       ``(B) For the purpose of selecting families to be assisted 
     under this subsection, the public housing agency may 
     establish, after public notice and an opportunity for public 
     comment, a written system of preferences for selection that 
     is not inconsistent with the comprehensive housing 
     affordability strategy under title I of the Cranston-Gonzalez 
     National Affordable Housing Act.''.
       (4) Section 8 new construction and substantial 
     rehabilitation.--
       (A) Repeal.--Section 545(c) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 1437f note) is 
     amended to read as follows:
       ``(c) [Reserved.]''.
       (B) Prohibition.--Notwithstanding any other provision of 
     law, no Federal tenant selection preferences under the United 
     States Housing Act of 1937 shall apply with respect to--
       (i) housing 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 on 
     the day before October 1, 1983); or
       (ii) projects financed under section 202 of the Housing Act 
     of 1959 (as such section existed on the day before the date 
     of enactment of the Cranston-Gonzalez National Affordable 
     Housing Act).
       (5) Rent supplements.--Section 101(k) of the Housing and 
     Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is amended 
     to read as follows:
       ``(k) [Reserved.]''.
       (6) Conforming amendments.--
       (A) United states housing act of 1937.--The United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (i) in section 6(o), by striking ``preference rules 
     specified in'' and inserting ``written system of preferences 
     for selection established pursuant to'';
       (ii) in the second sentence of section 7(a)(2), by striking 
     ``according to the preferences for occupancy under'' and 
     inserting ``in accordance with the written system of 
     preferences for selection established pursuant to'';
       (iii) in section 8(d)(2)(A), by striking the last sentence;
       (iv) in section 8(d)(2)(H), by striking ``Notwithstanding 
     subsection (d)(1)(A)(i), an'' and inserting ``An'';
       (v) in section 16(c), in the second sentence, by striking 
     ``the system of preferences established by the agency 
     pursuant to section 6(c)(4)(A)(ii)'' and inserting ``the 
     written system of preferences for selection established by 
     the public housing agency pursuant to section 6(c)(4)(A)''; 
     and
       (vi) in section 24(e)--

       (I) by striking ``(e) EXCEPTIONS'' and all that follows 
     through ``The Secretary may'' and inserting the following:

       ``(e) Exception to General Program Requirements.--The 
     Secretary may''; and

       (II) by striking paragraph (2).

       (B) Cranston-gonzalez national affordable housing act.--
     Section 522(f)(6)(B) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12704 et seq.) is amended 
     by striking ``any preferences for such assistance under 
     section 8(d)(1)(A)(i)'' and inserting ``the written system of 
     preferences for selection established pursuant to section 
     8(d)(1)(A)''.
       (C) Housing and community development act of 1992.--Section 
     655 of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13615) is amended by striking ``the preferences'' and 
     all that follows up to the period at the end and inserting 
     ``any preferences''.
       (D) References in other law.--Any reference in any Federal 
     law other than any provision of any law amended by paragraphs 
     (1) through (5) of this subsection to the preferences for 
     assistance under section 6(c)(4)(A)(i), 8(d)(1)(A)(i), or 
     8(o)(3)(B) of the United States Housing Act of 1937 (as such 
     sections existed on the day before the date of enactment of 
     this Act) shall be considered to refer to the written system 
     of preferences for selection established pursuant to section 
     6(c)(4)(A), 8(d)(1)(A), or 8(o)(3)(B), respectively, of the 
     United States Housing Act of 1937, as amended by this 
     section.
       (e) Applicability.--In accordance with section 201(b)(2) of 
     the United States Housing Act of 1937, the amendments made by 
     subsections (a), (b), (c), (d), and (f) of this section shall 
     also apply to public housing developed or operated pursuant 
     to a contract between the Secretary of Housing and Urban 
     Development and an Indian housing authority.
       (f) This section shall be effective upon the enactment of 
     this Act and only for fiscal year 1996.

     SEC. 203. CONVERSION OF CERTAIN PUBLIC HOUSING TO VOUCHERS.

       (a) Identification of Units.--Each public housing agency 
     shall identify any public housing developments--
       (1) that are on the same or contiguous sites;
       (2) that total more than--
       (A) 300 dwelling units; or
       (B) in the case of high-rise family buildings or 
     substantially vacant buildings, 300 dwelling units;
       (3) that have a vacancy rate of at least 10 percent for 
     dwelling units not in funded, on-schedule modernization 
     programs;
       (4) identified as distressed housing that the public 
     housing agency cannot assure the long-term viability as 
     public housing through reasonable revitalization, density 
     reduction, or achievement of a broader range of household 
     income; and
       (5) for which the estimated cost of continued operation and 
     modernization of the developments as public housing exceeds 
     the cost of providing tenant-based assistance under section 8 
     of the United States Housing Act of 1937 for all families in 
     occupancy, based on appropriate indicators of cost (such as 
     the percentage of total development cost required for 
     modernization).
       (b) Implementation and Enforcement.--
       (1) Standards for implementation.--The Secretary shall 
     establish standards to permit implementation of this section 
     in fiscal year 1996.
       (2) Consultation.--Each public housing agency shall consult 
     with the applicable public housing tenants and the unit of 
     general local government in identifying any public housing 
     developments under subsection (a).
       (3) Failure of phas to comply with subsection (a).--Where 
     the Secretary determines that--
       (A) a public housing agency has failed under subsection (a) 
     to identify public housing developments for removal from the 
     inventory of the agency in a timely manner;
       (B) a public housing agency has failed to identify one or 
     more public housing developments which the Secretary 
     determines should have been identified under subsection (a); 
     or
       (C) one or more of the developments identified by the 
     public housing agency pursuant to subsection (a) should not, 
     in the determination of the Secretary, have been identified 
     under that subsection;

     the Secretary may designate the developments to be removed 
     from the inventory of the public housing agency pursuant to 
     this section.
       (c) Removal of Units From the Inventories of Public Housing 
     Agencies.--
       (1) Each public housing agency shall develop and carry out 
     a plan in conjunction with the Secretary for the removal of 
     public housing units identified under subsection (a) or 
     subsection (b)(3), over a period of up to five years, from 
     the inventory of the public housing agency and the annual 
     contributions contract. The plan shall be approved by the 
     relevant local official as not inconsistent with the 
     Comprehensive Housing Affordability Strategy under title I of 
     the Housing and Community Development Act of 1992, including 
     a description of any disposition and demolition plan for the 
     public housing units.
       (2) The Secretary may extend the deadline in paragraph (1) 
     for up to an additional five years where the Secretary makes 
     a determination that the deadline is impracticable.
       (3) The Secretary shall take appropriate actions to ensure 
     removal of developments identified under subsection (a) or 
     subsection (b)(3) 

[[Page H 14117]]
     from the inventory of a public housing agency, if the public housing 
     agency fails to adequately develop a plan under paragraph 
     (1), or fails to adequately implement such plan in accordance 
     with the terms of the plan.
       (4) To the extent approved in appropriations Acts, the 
     Secretary may establish requirements and provide funding 
     under the Urban Revitalization Demonstration program for 
     demolition and disposition of public housing under this 
     section.
       (5) Notwithstanding any other provision of law, if a 
     development is removed from the inventory of a public housing 
     agency and the annual contributions contract pursuant to 
     paragraph (1), the Secretary may authorize or direct the 
     transfer of--
       (A) in the case of an agency receiving assistance under the 
     comprehensive improvement assistance program, any amounts 
     obligated by the Secretary for the modernization of such 
     development pursuant to section 14 of the United States 
     Housing Act of 1937;
       (B) in the case of an agency receiving public and Indian 
     housing modernization assistance by formula pursuant to 
     section 14 of the United States Housing Act of 1937, any 
     amounts provided to the agency which are attributable 
     pursuant to the formula for allocating such assistance to the 
     development removed from the inventory of that agency; and
       (C) in the case of an agency receiving assistance for the 
     major reconstruction of obsolete projects, any amounts 
     obligated by the Secretary for the major reconstruction of 
     the development pursuant to section 5 of such Act,

     to the tenant-based assistance program or appropriate site 
     revitalization of such agency.
       (6) Cessation of unnecessary spending.--Notwithstanding any 
     other provision of law, if, in the determination of the 
     Secretary, a development meets or is likely to meet the 
     criteria set forth in subsection (a), the Secretary may 
     direct the public housing agency to cease additional spending 
     in connection with the development, except to the extent that 
     additional spending is necessary to ensure decent, safe, and 
     sanitary housing until the Secretary determines or approves 
     an appropriate course of action with respect to such 
     development under this section.
       (d) Conversion to Tenant-Based Assistance.--
       (1) The Secretary shall make authority available to a 
     public housing agency to provide tenant-based assistance 
     pursuant to section 8 to families residing in any development 
     that is removed from the inventory of the public housing 
     agency and the annual contributions contract pursuant to 
     subsection (b).
       (2) Each conversion plan under subsection (c) shall--
       (A) require the agency to notify families residing in the 
     development, consistent with any guidelines issued by the 
     Secretary governing such notifications, that the development 
     shall be removed from the inventory of the public housing 
     agency and the families shall receive tenant-based or 
     project-based assistance, and to provide any necessary 
     counseling for families; and
       (B) ensure that all tenants affected by a determination 
     under this section that a development shall be removed from 
     the inventory of a public housing agency shall be offered 
     tenant-based or project-based assistance and shall be 
     relocated, as necessary, to other decent, safe, sanitary, and 
     affordable housing which is, to the maximum extent 
     practicable, housing of their choice.
       (e) In General.--
       (1) The Secretary may require a public housing agency to 
     provide such information as the Secretary considers necessary 
     for the administration of this section.
       (2) As used in this section, the term ``development'' shall 
     refer to a project or projects, or to portions of a project 
     or projects, as appropriate.
       (3) Section 18 of the United States Housing Act of 1937 
     shall not apply to the demolition of developments removed 
     from the inventory of the public housing agency under this 
     section.

     SEC. 204. STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.

       (a) ``Take-One, Take-All''.--Section 8(t) of the United 
     States Housing Act of 1937 is hereby repealed.
       (b) Exemption From Notice Requirements for the Certificate 
     and Voucher Programs.--Section 8(c) of such Act is amended--
       (1) in paragraph (8), by inserting after ``section'' the 
     following: ``(other than a contract for assistance under the 
     certificate or voucher program)''; and
       (2) in the first sentence of paragraph (9), by striking 
     ``(but not less than 90 days in the case of housing 
     certificates or vouchers under subsection (b) or (o))'' and 
     inserting ``, other than a contract under the certificate or 
     voucher program''.
       (c) Endless Lease.--Section 8(d)(1)(B) of such Act is 
     amended--
       (1) in clause (ii), by inserting ``during the term of the 
     lease,'' after ``(ii)''; and
       (2) in clause (iii), by striking ``provide that'' and 
     inserting ``during the term of the lease,''.
       (d) Applicability.--The provisions of this section shall be 
     effective for fiscal year 1996 only.

     Sec. 205. SECTION 8 FAIR MARKET RENTALS, ADMINISTRATIVE FEES, 
                   AND DELAY IN REISSUANCE.

       (a) Fair Market Rentals.--The Secretary shall establish 
     fair market rentals for purposes of section 8(c)(1) of the 
     United States Housing Act of 1937, as amended, that shall be 
     effective for fiscal year 1996 and shall be based on the 40th 
     percentile rent of rental distributions of standard quality 
     rental housing units. In establishing such fair market 
     rentals, the Secretary shall consider only the rents for 
     dwelling units occupied by recent movers and may not consider 
     the rents for public housing dwelling units or newly 
     constructed rental dwelling units.
       (b) Administrative Fees.--Notwithstanding sections 8(q)(1) 
     and (4) of the United States Housing Act of 1937, for fiscal 
     year 1996, the fee for each month for which a dwelling unit 
     is covered by an assistance contract under the certificate, 
     voucher, or moderate rehabilitation program under section 8 
     of such Act shall be equal to the monthly fee payable for 
     fiscal year 1995: Provided, That this subsection shall be 
     applicable to all amounts made available for such fees during 
     fiscal year 1996, as if in effect on October 1, 1995.
       (c) Delay Reissuance of Vouchers and Certificates.--
     Notwithstanding any other provision of law, a public housing 
     agency administering certificate or voucher assistance 
     provided under subsection (b) or (o) of section 8 of the 
     United States Housing Act of 1937, as amended, shall delay 
     for 3 months, the use of any amounts of such assistance (or 
     the certificate or voucher representing assistance amounts) 
     made available by the termination during fiscal year 1996 of 
     such assistance on behalf of any family for any reason, but 
     not later than October 1, 1996; with the exception of any 
     certificates assigned or committed to project based 
     assistance as permitted otherwise by the Act, accomplished 
     prior to the effective date of this Act.

     SEC. 206. PUBLIC HOUSING/SECTION 8 MOVING TO WORK 
                   DEMONSTRATION.

       (a) Purpose.--The purpose of this demonstration is to give 
     public housing agencies and the Secretary of Housing and 
     Urban Development the flexibility to design and test various 
     approaches for providing and administering housing assistance 
     that: reduce cost and achieve greater cost effectiveness in 
     Federal expenditures; give incentives to families with 
     children where the head of household is working, seeking 
     work, or is preparing for work by participating in job 
     training, educational programs, or programs that assist 
     people to obtain employment and become economically self-
     sufficient; and increase housing choices for low-income 
     families.
       (b) Program Authority.--The Secretary of Housing and Urban 
     Development shall conduct a demonstration program under this 
     section beginning in fiscal year 1996 under which up to 30 
     public housing agencies (including Indian housing 
     authorities) administering the public or Indian housing 
     program and the section 8 housing assistance payments 
     program, administering a total number of public housing units 
     not in excess of 25,000, may be selected by the Secretary to 
     participate. The Secretary shall provide training and 
     technical assistance during the demonstration and conduct 
     detailed evaluations of up to 15 such agencies in an effort 
     to identify replicable program models promoting the purpose 
     of the demonstration. Under the demonstration, 
     notwithstanding any provision of the United States Housing 
     Act of 1937 except as provided in subsection (e), an agency 
     may combine operating assistance provided under section 9 of 
     the United States Housing Act of 1937, modernization 
     assistance provided under section 14 of such Act, and 
     assistance provided under section 8 of such Act for the 
     certificate and voucher programs, to provide housing 
     assistance for low-income families, as defined in section 
     3(b)(2) of the United States Housing Act of 1937, and 
     services to facilitate the transition to work on such terms 
     and conditions as the agency may propose and the Secretary 
     may approve.
       (c) Application.--An application to participate in the 
     demonstration--
       (1) shall request authority to combine assistance under 
     sections 8, 9, and 14 of the United States Housing Act of 
     1937;
       (2) shall be submitted only after the public housing agency 
     provides for citizen participation through a public hearing 
     and, if appropriate, other means;
       (3) shall include a plan developed by the agency that takes 
     into account comments from the public hearing and any other 
     public comments on the proposed program, and comments from 
     current and prospective residents who would be affected, and 
     that includes criteria for--
       (A) families to be assisted, which shall require that at 
     least 75 percent of the families assisted by participating 
     demonstration public housing authorities shall be very low-
     income families, as defined in section 3(b)(2) of the United 
     States Housing Act of 1937, and at least 50 percent of the 
     families selected shall have incomes that do not exceed 30 
     percent of the median family income for the area, as 
     determined by the Secretary with adjustments for smaller and 
     larger families, except that the Secretary may establish 
     income ceilings higher or lower than 30 percent of the median 
     for the area on the basis of the Secretary's findings that 
     such variations are necessary because of unusually high or 
     low family income;
       (B) establishing a reasonable rent policy, which shall be 
     designed to encourage employment and self-sufficiency by 
     participating families, consistent with the purpose of this 
     demonstration, such as by excluding some or all of a family's 
     earned income for purposes of determining rent;
       (C) continuing to assist substantially the same total 
     number of eligible low-income families as would have been 
     served had the amounts not been combined;
       (D) maintaining a comparable mix of families (by family 
     size) as would have been provided had the amounts not been 
     used under the demonstration; and
       (E) assuring that housing assisted under the demonstration 
     program meets housing quality standards established or 
     approved by the Secretary; and
       (4) may request assistance for training and technical 
     assistance to assist with design of the demonstration and to 
     participate in a detailed evaluation.
       (d) Selection.--In selecting among applications, the 
     Secretary shall take into account the potential of each 
     agency to plan and carry out 

[[Page H 14118]]
     a program under the demonstration, the relative performance by an 
     agency under the public housing management assessment program 
     under section 6(j) of the United States Housing Act of 1937, 
     and other appropriate factors as determined by the Secretary.
       (e) Applicability of 1937 Act Provisions.--
       (1) Section 18 of the United States Housing Act of 1937 
     shall continue to apply to public housing notwithstanding any 
     use of the housing under this demonstration.
       (2) Section 12 of such Act shall apply to housing assisted 
     under the demonstration, other than housing assisted solely 
     due to occupancy by families receiving tenant-based 
     assistance.
       (f) Effect on Section 8, Operating Subsidies, and 
     Comprehensive Grant Program Allocations.--The amount of 
     assistance received under section 8, section 9, or pursuant 
     to section 14 by a public housing agency participating in the 
     demonstration under this part shall not be diminished by its 
     participation.
       (g) Records, Reports, and Audits.--
       (1) Keeping of records.--Each agency shall keep such 
     records as the Secretary may prescribe as reasonably 
     necessary to disclose the amounts and the disposition of 
     amounts under this demonstration, to ensure compliance with 
     the requirements of this section, and to measure performance.
       (2) Reports.--Each agency 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) document the use of funds made available under this 
     section;
       (B) provide such data as the Secretary may request to 
     assist the Secretary in assessing the demonstration; and
       (C) describe and analyze the effect of assisted activities 
     in addressing the objectives of this part.
       (3) Access to Documents by the Secretary.--The Secretary 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records that are pertinent 
     to assistance in connection with, and the requirements of, 
     this section.
       (4) Access to Documents by the 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 of any 
     books, documents, papers, and records that are pertinent to 
     assistance in connection with, and the requirements of, this 
     section.
       (h) Evaluation and Report.--
       (1) Consultation with pha and family representatives.--In 
     making assessments throughout the demonstration, the 
     Secretary shall consult with representatives of public 
     housing agencies and residents.
       (2) Report to congress.--Not later than 180 days after the 
     end of the third year of the demonstration, the Secretary 
     shall submit to the Congress a report evaluating the programs 
     carried out under the demonstration. The report shall also 
     include findings and recommendations for any appropriate 
     legislative action.
       (i) Funding for Technical Assistance and Evaluation.--From 
     amounts appropriated for assistance under section 14 of the 
     United States Housing Act of 1937 for fiscal years 1996, 
     1997, and 1998, the Secretary may use up to a total of 
     $5,000,000--
       (1) to provide, directly or by contract, training and 
     technical assistance--
       (A) to public housing agencies that express an interest to 
     apply for training and technical assistance pursuant to 
     subsection (c)(4), to assist them in designing programs to be 
     proposed for the demonstration; and
       (B) to up to 10 agencies selected to receive training and 
     technical assistance pursuant to subsection (c)(4), to assist 
     them in implementing the approved program; and
       (2) to conduct detailed evaluations of the activities of 
     the public housing agencies under paragraph (1)(B), directly 
     or by contract.

     SEC. 207. REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS.

       (a) Maximum Annual Limitation on Rent Increases Resulting 
     From Employment.--Section 957 of the Cranston-Gonzalez 
     National Affordable Housing Act is hereby repealed, 
     retroactive to November 28, 1990, and shall be of no effect.
       (b) Economic Independence.--Section 923 of the Housing and 
     Community Development Act of 1992 is hereby repealed, 
     retroactive to October 28, 1992, and shall be of no effect.

     SEC. 208. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS.

       (a) The first sentence of section 542(b)(5) of the Housing 
     and Community Development Act of 1992 (12 U.S.C. 1707 note) 
     is amended by striking ``on not more than 15,000 units over 
     fiscal years 1993 and 1994'' and inserting ``on not more than 
     7,500 units during fiscal year 1996''.
       (b) The first sentence of section 542(c)(4) of the Housing 
     and Community Development Act of 1992 (12 U.S.C. 1707 note) 
     is amended by striking ``on not to exceed 30,000 units over 
     fiscal years 1993, 1994, and 1995'' and inserting ``on not 
     more than 10,000 units during fiscal year 1996''.

     SEC. 209. FORECLOSURE OF HUD-HELD MORTGAGES THROUGH THIRD 
                   PARTIES.

       During fiscal year 1996, the Secretary of Housing and Urban 
     Development may delegate to one or more entities the 
     authority to carry out some or all of the functions and 
     responsibilities of the Secretary in connection with the 
     foreclosure of mortgages held by the Secretary under the 
     National Housing Act.

     SEC. 210. RESTRUCTURING OF THE HUD MULTIFAMILY MORTGAGE 
                   PORTFOLIO THROUGH STATE HOUSING FINANCE 
                   AGENCIES.

       During fiscal year 1996, the Secretary of Housing and Urban 
     Development may sell or otherwise transfer multifamily 
     mortgages held by the Secretary under the National Housing 
     Act to a State housing finance agency in connection with a 
     program authorized under section 542 (b) or (c) of the 
     Housing and Community Development Act of 1992 without regard 
     to the unit limitations in section 542(b)(5) or 542(c)(4) of 
     such Act.

     SEC. 211. TRANSFER OF SECTION 8 AUTHORITY.

       (a) Section 8 of the United States Housing Act of 1937 is 
     amended by adding the following new subsection at the end:
       ``(bb) Transfer of Budget Authority.--If an assistance 
     contract under this section, other than a contract for 
     tenant-based assistance, is terminated or is not renewed, or 
     if the contract expires, the Secretary shall, in order to 
     provide continued assistance to eligible families, including 
     eligible families receiving the benefit of the project-based 
     assistance at the time of the termination, transfer any 
     budget authority remaining in the contract to another 
     contract. The transfer shall be under such terms as the 
     Secretary may prescribe.''.

     SEC. 212. DOCUMENTATION OF MULTIFAMILY REFINANCING.

       Notwithstanding the 16th paragraph under the item relating 
     to ``administrative provisions'' in title II of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1995 (Public Law 103-327; 108 Stat. 2316), the amendments to 
     section 223(a)(7) of the National Housing Act made by the 
     15th paragraph of such Act shall be effective during fiscal 
     year 1996 and thereafter.

     SEC. 213. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.

       (a) On and after October 1, 1995, and before October 1, 
     1997, the Secretary of Housing and Urban Development shall 
     initiate a demonstration program with respect to multifamily 
     projects whose owners agree to participate and whose 
     mortgages are insured under the National Housing Act and that 
     are assisted under section 8 of the United States Housing Act 
     of 1937 and whose present section 8 rents are, in the 
     aggregate, in excess of the fair market rent of the locality 
     in which the project is located. These programs shall be 
     designed to test the feasibility and desirability of the goal 
     of ensuring, to the maximum extent practicable, that the debt 
     service and operating expenses, including adequate reserves, 
     attributable to such multifamily projects can be supported 
     with or without mortgage insurance under the National Housing 
     Act and with or without above-market rents and utilizing 
     project-based assistance or, with the consent of the property 
     owner, tenant based assistance, while taking into account the 
     need for assistance of low and very low income families in 
     such projects. In carrying out this demonstration, the 
     Secretary may use arrangements with third parties, under 
     which the Secretary may provide for the assumption by the 
     third parties (by delegation, contract, or otherwise) of some 
     or all of the functions, obligations, and benefits of the 
     Secretary.
       (1) Goals.--The Secretary of Housing and Urban Development 
     shall carry out the demonstration programs under this section 
     in a manner that--
       (A) will protect the financial interests of the Federal 
     Government;
       (B) will result in significant discretionary cost savings 
     through debt restructuring and subsidy reduction; and
       (C) will, in the least costly fashion, address the goals 
     of--
       (i) maintaining existing housing stock in a decent, safe, 
     and sanitary condition;
       (ii) minimizing the involuntary displacement of tenants;
       (iii) restructuring the mortgages of such projects in a 
     manner that is consistent with local housing market 
     conditions;
       (iv) supporting fair housing strategies;
       (v) minimizing any adverse income tax impact on property 
     owners; and
       (vi) minimizing any adverse impact on residential 
     neighborhoods.
     In determining the manner in which a mortgage is to be 
     restructured or the subsidy reduced, the Secretary may 
     balance competing goals relating to individual projects in a 
     manner that will further the purposes of this section.
       (2) Demonstration approaches.--In carrying out the 
     demonstration programs, subject to the appropriation in 
     subsection (f), the Secretary may use one or more of the 
     following approaches:
       (A) Joint venture arrangements with third parties, under 
     which the Secretary may provide for the assumption by the 
     third parties (by delegation, contract, or otherwise) of some 
     or all of the functions, obligations, and benefits of the 
     Secretary.
       (B) Subsidization of the debt service of the project to a 
     level that can be paid by an owner receiving an unsubsidized 
     market rent.
       (C) Renewal of existing project-based assistance contracts 
     where the Secretary shall approve proposed initial rent 
     levels that do not exceed the greater of 120 percent of fair 
     market rents or comparable market rents for the relevant 
     metropolitan market area or at rent levels under a budget-
     based approach.
       (D) Nonrenewal of expiring existing project-based 
     assistance contracts and providing tenant-based assistance to 
     previously assisted households.
       (b) For purposes of carrying out demonstration programs 
     under subsection (a)--
       (1) the Secretary may manage and dispose of multifamily 
     properties owned by the Secretary as of October 1, 1995 and 
     multifamily mortgages held by the Secretary as of October 1, 
     1995 for properties assisted under section 8 with rents above 
     110 percent of fair market rents without regard to any other 
     provision of law; and
     
[[Page H 14119]]

       (2) the Secretary may delegate to one or more entities the 
     authority to carry out some or all of the functions and 
     responsibilities of the Secretary in connection with the 
     foreclosure of mortgages held by the Secretary under the 
     National Housing Act.
       (c) For purposes of carrying out demonstration programs 
     under subsection (a), subject to such third party consents 
     (if any) as are necessary including but not limited to (i) 
     consent by the Government National Mortgage Association where 
     it owns a mortgage insured by the Secretary; (ii) consent by 
     an issuer under the mortgage-backed securities program of the 
     Association, subject to the responsibilities of the issuer to 
     its security holders and the Association under such program; 
     and (iii) parties to any contractual agreement which the 
     Secretary proposes to modify or discontinue, and subject to 
     the appropriation in subsection (c), the Secretary or one or 
     more third parties designated by the Secretary may take the 
     following actions:
       (1) Notwithstanding any other provision of law, and subject 
     to the agreement of the project owner, the Secretary or third 
     party may remove, relinquish, extinguish, modify, or agree to 
     the removal of any mortgage, regulatory agreement, project-
     based assistance contract, use agreement, or restriction that 
     had been imposed or required by the Secretary, including 
     restrictions on distributions of income which the Secretary 
     or third party determines would interfere with the ability of 
     the project to operate without above market rents. The 
     Secretary or third party may require an owner of a property 
     assisted under the section 8 new construction/substantial 
     rehabilitation program to apply any accumulated residual 
     receipts toward effecting the purposes of this section.
       (2) Notwithstanding any other provision of law, the 
     Secretary of Housing and Urban Development may enter into 
     contracts to purchase reinsurance, or enter into 
     participations or otherwise transfer economic interest in 
     contracts of insurance or in the premiums paid, or due to be 
     paid, on such insurance to third parties, on such terms and 
     conditions as the Secretary may determine.
       (3) The Secretary may offer project-based assistance with 
     rents at or below fair market rents for the locality in which 
     the project is located and may negotiate such other terms as 
     are acceptable to the Secretary and the project owner.
       (4) The Secretary may offer to pay all or a portion of the 
     project's debt service, including payments monthly from the 
     appropriate Insurance Fund, for the full remaining term of 
     the insured mortgage.
       (5) Notwithstanding any other provision of law, the 
     Secretary may forgive and cancel any FHA-insured mortgage 
     debt that a demonstration program property cannot carry at 
     market rents while bearing full operating costs.
       (6) For demonstration program properties that cannot carry 
     full operating costs (excluding debt service) at market 
     rents, the Secretary may approve project-based rents 
     sufficient to carry such full operating costs and may offer 
     to pay the full debt service in the manner provided in 
     paragraph (4).
       (d) Community and Tenant Input.--In carrying out this 
     section, the Secretary shall develop procedures to provide 
     appropriate and timely notice to officials of the unit of 
     general local government affected, the community in which the 
     project is situated, and the tenants of the project.
       (e) Limitation on Demonstration Authority.--The Secretary 
     may carry out demonstration programs under this section with 
     respect to mortgages not to exceed 15,000 units. The 
     demonstration authorized under this section shall not be 
     expanded until the reports required under subsection (f) are 
     submitted to the Congress.
       (f) Appropriation.--For the cost of modifying loans held or 
     guaranteed by the Federal Housing Administration, as 
     authorized by this subsection (a)(2) and subsection (c), 
     $30,000,000, to remain available until September 30, 1997: 
     Provided, That such costs shall be as defined in section 502 
     of the Congressional Budget Act of 1974, as amended.
       (g) Report to Congress.--The Secretary shall submit to the 
     Congress every six months after the date of enactment of this 
     Act a report describing and assessing the programs carried 
     out under the demonstrations. The Secretary shall also submit 
     a final report to the Congress not later than six months 
     after the end of the demonstrations. The reports shall 
     include findings and recommendations for any legislative 
     action appropriate. The reports shall also include a 
     description of the status of each multifamily housing project 
     selected for the demonstrations under this section. The final 
     report may include--
       (1) the size of the projects;
       (2) the geographic locations of the projects, by State and 
     region;
       (3) the physical and financial condition of the projects;
       (4) the occupancy profile of the projects, including the 
     income, family size, race, and ethnic origin of current 
     tenants, and the rents paid by such tenants;
       (5) a description of actions undertaken pursuant to this 
     section, including a description of the effectiveness of such 
     actions and any impediments to the transfer or sale of 
     mulifamily housing projects;
       (6) a description of the extent to which the demonstrations 
     under this section have displaced tenants of multifamily 
     housings projects;
       (7) a description of any of the functions performed in 
     connection with this section that are transferred or 
     contracted out to public or private entities or to States;
       (8) a description of the impact to which the demonstrations 
     under this section have affected the localities and 
     communities where the selected multifamily housing projects 
     are located; and
       (9) a description of the extent to which the demonstrations 
     under this section have affected the owners of multifamily 
     housing projects.

     SEC. 214. SECTION 8 CONTRACT RENEWALS.

       (a) For fiscal year 1996 and henceforth, the Secretary of 
     Housing and Urban Development may use amounts available for 
     the renewal of assistance under section 8 of the United 
     States Housing Act of 1937, upon termination or expiration of 
     a contract for assistance under section 8 of such Act of 1937 
     (other than a contract for tenant-based assistance and 
     notwithstanding section 8(v) of such Act for loan management 
     assistance), to provide assistance under section 8 of such 
     Act, subject to the Section 8 Existing Fair Market Rents, for 
     the eligible families assisted under the contracts at 
     expiration or temination, which assistance shall be in 
     accordance with terms and conditions prescribed by the 
     Secretary.
       (b) Notwithstanding subsection (a) and except for projects 
     assisted under section 8(e)(2) of the United States Housing 
     Act of 1937 (as it existed immediately prior to October 1, 
     1991), at the request of the owner, the Secretary shall renew 
     for a period of one year contracts for assistance under 
     section 8 that expire or terminate during fiscal year 1996 at 
     the current rent levels.
       (c) Section 8(v) of the United States Housing Act of 1937 
     is amended to read as follows:
       ``The Secretary may extend expiring contracts entered into 
     under this section for project-based loan management 
     assistance to the extent necessary to prevent displacement of 
     low-income families receiving such assistance as of September 
     30, 1996.''.
       (d) Section 236(f) of the National Housing Act (12 U.S.C. 
     1715z-l(f)) is amended:
       (1) by striking the second sentence in paragraph (1) and 
     inserting in lieu thereof the following: ``The rental charge 
     for each dwelling unit shall be at the basic rental charge or 
     such greater amount, not exceeding the lower of (i) the fair 
     market rental charge determined pursuant to this paragraph, 
     or (ii) the fair market rental established under section 8(v) 
     of the United States Housing Act of 1937 for the market area 
     in which the housing is located, as represents 30 per centum 
     of the tenant's adjusted income.''; and
       (2) by striking paragraph (6).''.

     SEC. 215. EXTENSION OF HOME EQUITY CONVERSION MORTGAGE 
                   PROGRAM.

       Section 255(g) of the National Housing Act (12 U.S.C. 
     1715z-20(g)) is amended--
       (1) in the first sentence, by striking ``September 30, 
     1995'' and inserting ``September 30, 1996''; and
       (2) in the second sentence, by striking ``25,000'' and 
     inserting ``30,000''.

     SEC. 216. 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.''.

     SEC. 217. MERGER LANGUAGE FOR ASSISTANCE FOR THE RENEWAL OF 
                   EXPIRING SECTION 8 SUBSIDY CONTRACTS AND ANNUAL 
                   CONTRIBUTIONS FOR ASSISTED HOUSING.

       All remaining obligated and unobligated balances in the 
     Renewal of Expiring Section 8 Subsidy Contracts account on 
     September 30, 1995, shall immediately thereafter be 
     transferred to and merged with the obligated and unobligated 
     balances, respectively, of the Annual Contributions for 
     Assisted Housing account.

     SEC. 218. DEBT FORGIVENESS.

       (a) The Secretary of Housing and Urban Development shall 
     cancel the indebtedness of the Hubbard Hospital Authority of 
     Hubbard, Texas, relating to the public facilities loan for 
     Project Number PFL-TEX-215, issued under title II of the 
     Housing Amendments of 1955. Such hospital authority is 
     relieved of all liability to the Government for the 
     outstanding principal balance on such loan, for the amount of 
     accrued interest on such loan, and for any fees and charges 
     payable in connection with such loan.
       (b) The Secretary of Housing and Urban Development shall 
     cancel the indebtedness of the Groveton Texas Hospital 
     Authority relating to the public facilities loan for Project 
     Number TEX-41-PFL0162, issued under title II of the Housing 
     Amendments of 1955. Such hospital authority is relieved of 
     all liability to the Government for the outstanding principal 
     balance on such loan, for the amount of accrued interest on 
     such loan, and for any fees and charges payable in connection 
     with such loan.
       (c) The Secretary of Housing and Urban Development shall 
     cancel the indebtedness of the Hepzibah Public Service 
     District of Hepzibah, West Virginia, relating to the public 
     facilities loan for Project Number WV-46-PFL0031, issued 
     under title II of the Housing Amendments of 1955. Such public 
     service district is relieved of all liability to the 
     Government for the outstanding principal balance on such 
     loan, for the amount of accrued interest on such loan, and 
     for any fees and charges payable in connection with such 
     loan.

     SEC. 219. CLARIFICATIONS.

       For purposes of Federal law, the Paul Mirabile Center in 
     San Diego, California, including areas within such Center 
     that are devoted to the delivery of supportive services, has 
     been determined to satisfy the ``continuum of care'' 
     requirements of the Department of Housing and Urban 
     Development, and shall be treated as:
       (a) consisting solely of residential units that (i) contain 
     sleeping accommodations and kitchen and bathroom facilities, 
     (ii) are located in a building that is used exclusively to 
     facilitate the 

[[Page H 14120]]
     transition of homeless individuals (within the meaning of section 103 
     of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11302), as in effect on December 19, 1989) to independent 
     living within 24 months, (iii) are suitable for occupancy, 
     with each cubicle constituting a separate bedroom and 
     residential unit, (iv) are used on other than a transient 
     basis, and (v) shall be originally placed in service on 
     November 1, 1995; and
       (b) property that is entirely residential rental property, 
     namely, a project for residential rental property.

     SEC. 220. EMPLOYMENT LIMITATIONS.

       (a) By the end of fiscal year 1996 the Department of 
     Housing and Urban Development shall employ no more than seven 
     Assistant Secretaries, notwithstanding section 4(a) of the 
     Department of Housing and Urban Development Act.
       (b) By the end of fiscal year 1996 the Department of 
     Housing and urban Development shall employ no more than 77 
     schedule C and 20 non-career senior executive service 
     employees.

     SEC. 221. USE OF FUNDS.

       (a) Of the $93,400,000 earmarked in Public Law 101-144 (103 
     Stat 850), as amended by Public Law 101-302 (104 Stat 237), 
     for special projects and purposes, any amounts remaining of 
     the $500,000 made available to Bethlehem House in Highland, 
     California, for site planning and land acquisition shall 
     instead be made available to the County of San Bernardino in 
     California to assist with the expansion of the Los Padrinos 
     Gang Intervention Program and the Unity Home Domestic 
     Violence Shelter.
       (b) The amount made available for fiscal year 1995 for the 
     removal of asbestos from an abandoned public school building 
     in Toledo, Ohio shall be made available for the renovation 
     and rehabilitation of an industrial building at the 
     University of Toledo in Toledo, Ohio.

     SEC. 222. LEAD-BASED PAINT ABATEMENT.

       (a) Section 1011 of Title X--Residential lead-Based Paint 
     Hazard Reduction Act of 1992 is amended as follows: Strike 
     ``priority housing'' wherever it appears in said section and 
     insert ``housing''.
       (b) Section 1011(a) shall be amended as follows: At the end 
     of the subsection after the period, insert:
       ``Grants shall only be made under this section to provide 
     assistance for housing which meets the following criteria--
       ``(1) for grants made to assist rental housing, at least 50 
     percent of the units must be occupied by or made available to 
     families with incomes at or below 50 percent of the area 
     median income level and the remaining units shall be occupied 
     or made available to families with incomes at or below 80 
     percent of the area median income level, and in all cases the 
     landlord shall give priority in renting units assisted under 
     this section, for no less than 3 years following the 
     completion of lead abatement activities, to families with a 
     child under the age of six years--
       ``(A) except that buildings with five or more units may 
     have 20 percent of the units occupied by families with 
     incomes above 80 percent of area median income level;
       ``(2) for grants made to assist housing owned by owner-
     occupants, all units assisted with grants under this section 
     shall be the principal residence of families with incomes at 
     or below 80 percent of the area median income level, and not 
     less than 90 percent of the units assisted with grants under 
     this section shall be occupied by a child under age of six 
     years or shall be units where a child under the age to six 
     years spends a significant amount of time visiting; and
       ``(3) notwithstanding paragraphs (1) and (2), round II 
     grantees who receive assistance under this section may use 
     such assistance for priority housing.''.

     SEC. 223. EXTENSION PERIOD FOR SHARING UTILITY COST SAVINGS 
                   WITH PHAS.

       Section 9(a)(3)(B)(i) of the United States Housing Act of 
     1937 is amended by striking ``for a period not to exceed 6 
     years''.

     SEC. 223A. MORTGAGE NOTE SALES.

       The first sentence of section 221(g)(4)(C)(viii) of the 
     National Housing Act is amended by striking ``September 30, 
     1995'' and inserting in lieu thereof ``September 30, 1996''.

     SEC. 223B. REPEAL OF FROST-LELAND.

       Section 415 of the Department of Housing and Urban 
     Development--Independent Agencies Appropriations Act, 1988 
     (Public Law 100-202; 101 Stat. 1329-213) is repealed.

     SEC. 223C. FHA SINGLE-FAMILY ASSIGNMENT PROGRAM REFORM.

       (a) Foreclosure Avoidance.--The last sentence of section 
     204(a) of the National Housing Act (12 U.S.C. 1710(a)) is 
     amended by inserting before the period the following: ``: And 
     provided further, That the Secretary may pay insurance 
     benefits to the mortgagee to recompense the mortgagee for its 
     actions to provide an alternative to the foreclosure of a 
     mortgage that is in default, which actions may include 
     special foreclosure, loan modification, and deeds in lieu of 
     foreclosure, all upon terms and conditions as the mortgagee 
     shall determine in the mortgagee's sole discretion, within 
     guidelines provided by the Secretary, but which may not 
     include assignment of a mortgage to the Secretary: And 
     provided further, That for purposes of the preceding proviso, 
     no action authorized by the Secretary and no action taken, 
     nor any failure to act, by the Secretary or the mortgagee 
     shall be subject to judicial review.''.
       (b) Authority To Assist Mortgagors in Default.--Section 230 
     of the National Housing Act (12 U.S.C. 1715u) is amended to 
     read as follows:


               ``authority to assist mortgagor in default

       ``Sec. 230. (a) Payment of Partial Claim.--The Secretary 
     may establish a program for payment of a partial claim to a 
     mortgagee that agrees to apply the claim amount to payment of 
     a mortgage on a 1- to 4-family residence that is in default. 
     Any such payment under such program to the mortgage shall be 
     made in the sole discretion of the Secretary and on terms and 
     conditions acceptable to the Secretary, except that--
       ``(1) the amount of the payment shall be in an amount 
     determined by the Secretary, not to exceed an amount 
     equivalent to 12 of the monthly mortgage payments and any 
     costs related to the default that are approved by the 
     Secretary; and
       ``(2) the mortgagor shall agree to repay the amount of the 
     insurance claim to the Secretary upon terms and conditions 
     acceptable to the Secretary.

     The Secretary may pay the mortgagee, from the appropriate 
     insurance fund, in connection with any activities that the 
     mortgagee is required to undertake concerning repayment by 
     the mortgagor of the amount owed to the Secretary.
       ``(b) Assignment.--
       ``(1) Program authority.--The Secretary may establish a 
     program for assignment to the Secretary, upon request of the 
     mortgagee, of a mortgage on a 1- to 4-family residence 
     insured under this Act.
       ``(2) Program requirements.--The Secretary may accept 
     assignment of a mortgage under a program under this 
     subsection only if--
       ``(A) the mortgage was in default;
       ``(B) the mortgagee has modified the mortgage to cure the 
     default and provide for mortgage payments within the 
     reasonable ability of the mortgagor to pay, at interest rates 
     not to exceed current market interest rates; and
       ``(C) the Secretary arranges for servicing of the assigned 
     mortgage by a mortgagee (which may include the assigning 
     mortgagee) through procedures that the Secretary has 
     determined to be in the best interests of the appropriate 
     insurance fund.
       ``(3) Payment of insurance benefits.--Upon accepting 
     assignment of a mortgage under a program established under 
     this subsection, the Secretary may pay insurance benefits to 
     the mortgagee from the appropriate insurance fund, in an 
     amount that the Secretary determines to be appropriate, not 
     to exceed the amount necessary to compensate the mortgagee 
     for the assignment and any losses and expenses resulting from 
     the mortgage modification.
       ``(c) Prohibition of Judicial Review.--No decision by the 
     Secretary to exercise or forgo exercising any authority under 
     this section shall be subject to judicial review.''.
       (c) Savings Provision.--Any mortgage for which the 
     mortgagee has applied to the Secretary, before the date of 
     enactment of the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 1996, for assignment pursuant to 
     subsection (b) of this section as in effect before such date 
     of enactment shall continue to be governed by the provisions 
     of such section, as in effect immediately before such date of 
     enactment.
       (d) Applicability of Other Laws.--No provision of this Act, 
     or any other law, shall be construed to require the Secretary 
     of Housing and Urban Development to provide an alternative to 
     foreclosure for mortgagees with mortgages on 1- to 4-family 
     residences insured by the Secretary under the National 
     Housing Act, or to accept assignments of such mortgages.
       (e) Applicability of Amendments.--Except as provided in 
     subsection (d), the amendments made by subsections (a) and 
     (b) shall apply with respect to mortgages originated before 
     fiscal year 1996.
       (f) Regulations.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Housing and Urban 
     Development shall issue interim regulations to implement this 
     section and amendments made by this section.
       (g) Effectiveness and Applicability.--If this Act is 
     enacted after the date of enactment of the Balanced Budget 
     Act of 1995--
       (1) subsections (a), (b), (c), (d), and (e) of this section 
     shall not take effect; and
       (2) section 2052(c) of the Balanced Budget Act of 1995 is 
     amended by striking ``that are originated on or after October 
     1, 1995'' and inserting in lieu thereof ``to mortgages 
     originated before, during, and after fiscal year 1996.''.

     SEC. 223D. SPENDING LIMITATIONS.

       (a) None of the funds in this Act may be used by the 
     Secretary to impose any sanction, or penalty because of the 
     enactment of any State or local law or regulation declaring 
     English as the official language.
       (b) No part of any appropriation contained in this Act 
     shall be used for lobbying activities as prohibited by law.

     SEC. 223E. TRANSFER OF FUNCTIONS TO THE DEPARTMENT OF 
                   JUSTICE.

       All functions, activities and responsibilities of the 
     Secretary of Housing and Urban Development relating to title 
     VIII of the Civil Rights Act of 1968, as amended by the Fair 
     Housing Amendments Act of 1988, and the Fair Housing Act, 
     including any rights guaranteed under the Fair Housing Act 
     (including any functions relating to the Fair Housing 
     Initiatives program under section 561 of the Housing and 
     Community Development Act of 1987), are hereby transferred to 
     the Attorney General of the United States effective April 1, 
     1997: Provided, That none of the aforementioned authority or 
     responsibility for enforcement of the Fair Housing Act shall 
     be transferred to the Attorney General until adequate 
     personnel and resources allocated to such activity at the 
     Department of Housing and Urban Development are transferred 
     to the Department of Justice.
       And the Senate agree to the same.
       Amendment numbered 65:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 65, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:


                         science and technology

       For science and technology, including research and 
     development activities, which shall 

[[Page H 14121]]
     include research and development activities under the Comprehensive 
     Environmental Response, Compensation and Liability Act of 
     1980 (CERCLA), as amended; necessary expenses for personnel 
     and related costs and travel expenses, including uniforms, or 
     allowances therefore, as authorized by 5 U.S.C. 5901-5902; 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     rate for GS-18; procurement of laboratory equipment and 
     supplies; other operating expenses in support of research and 
     development; construction, alteration, repair, rehabilitation 
     and renovation of facilities, not to exceed $75,000 per 
     project; $525,000,000, which shall remain available until 
     September 30, 1997.
       And the Senate agree to the same.
       Amendment numbered 66:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 66, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:


                 environmental programs and management

       For environmental programs and management, including 
     necessary expenses, not otherwise provided for, for personnel 
     and related costs and travel expenses, including uniforms, or 
     allowances therefore, as authorized by 5 U.S.C. 5901-5902; 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     rate for GS-18; hire of passenger motor vehicles; hire, 
     maintenance, and operation of aircraft; purchase of reprints; 
     library memberships in societies or associations which issue 
     publications to members only or at a price to members lower 
     than to subscribers who are not members; construction, 
     alteration, repair, rehabilitation, and renovation of 
     facilities, not to exceed $75,000 per project; and not to 
     exceed $6,000 for official reception and representation 
     expenses; $1,550,300,000, which shall remain available until 
     September 30, 1997: Provided, that, notwithstanding any other 
     provision of law, for this fiscal year and hereafter, an 
     industrial discharger that is a pharmaceutical manufacturing 
     facility and discharged to the Kalamazoo Water Reclamation 
     Plant (an advanced wastewater treatment plant with activated 
     carbon) prior to the date of enactment of this Act may be 
     exempted from categorical pretreatment standards under 
     section 307(b) of the Federal Water Pollution Control Act, as 
     amended, if the following conditions are met: (1) the owner 
     or operator of the Kalamazoo Water Reclamation Plant applies 
     to the State of Michigan for an exemption for such industrial 
     discharger, (2) the State or Administrator, as applicable, 
     approves such exemption request based upon a determination 
     that the Kalamazoo Water Reclamation Plant will provide 
     treatment and pollution removal equivalent to or better than 
     that which would be required through a combination of 
     pretreatment by such industrial discharger and treatment by 
     the Kalamazoo Water Reclamation Plant in the absence of the 
     exemption, and (3) compliance with paragraph (2) is addressed 
     by the provisions and conditions of a permit issued to the 
     Kalamazoo Water Reclamation Plant under section 402 of such 
     Act, and there exists an operative financial contract between 
     the City of Kalamazoo and the industrial user and an approved 
     local pretreatment program, including a joint monitoring 
     program and local controls to prevent against interference 
     and pass through.
       And the Senate agree to the same.
       Amendment numbered 68:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 68, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $28,500,000; and the Senate agree to the same.
       Amendment numbered 70:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 70, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: consisting of $913,400,000 as authorized 
     by section 517(a) of the Superfund Amendments and 
     Reauthorization Act of 1986 (SARA), as amended by Public Law 
     101-508, and $250,000,000 as a payment from general revenues 
     to the Hazardous Substance Superfund as authorized by section 
     517(b) of SARA, as amended by Public Law 101-508
       On page 61, line 1, of the House engrossed bill, H.R. 2099, 
     delete ``$1,003,400,000'' and insert ``$1,163,400,000''; and 
     the Senate agree to the same.
       Amendment numbered 71:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 71, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $11,000,000; and the Senate agree to the same.
       Amendment numbered 72:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 72, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $59,000,000; and the Senate agree to the same.
       Amendment numbered 74:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 74, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert: : 
     Provided further, That none of the funds made available under 
     this heading may be used by the Environmental Protection 
     Agency to propose for listing or to list any additional 
     facilities on the National Priorities List established by 
     section 105 of the Comprehensive Environmental Response, 
     Compensation and Liability Act (CERCLA), as amended (42 
     U.S.C. 9605), unless the Administrator receives a written 
     request to propose for listing or to list a facility from the 
     Governor of the State in which the facility is located, or 
     unless legislation to reauthorize CERCLA is enacted; and the 
     Senate agree to the same.
       Amendment numbered 76:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 76, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $7,000,000; and the Senate agree to the same.
       Amendment numbered 77:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 77, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $500,000; and the Senate agree to the same.
       Amendment numbered 80:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 80, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:


                   state and tribal assistance grants

       For environmental programs and infrastructure assistance, 
     including capitalization grants for state revolving funds and 
     performance partnership grants, $2,323,000,000, to remain 
     available unit expended, of which $1,400,000,000 shall be for 
     making capitalization grants for State revolving funds to 
     support water infrastructure financing; $100,000,000 for 
     architectural, engineering, design, construction and related 
     activities in connection with the construction of high 
     priority water and wastewater facilities in the area of the 
     United States-Mexico Border, after consultation with the 
     appropriate border commission; $50,000,000 for grants to the 
     State of Texas, which shall be matched by an equal amount of 
     State funds from State resources, for the purpose of 
     improving wastewater treatment for colonias; $15,000,000 for 
     grants to the State of Alaska, subject to an appropriate cost 
     share as determined by the Administrator, to address 
     wastewater infrastructure needs of rural and Alaska Native 
     villages; and $100,000,000 for making grants for the 
     construction of wastewater treatment facilities and the 
     development of groundwater in accordance with the terms and 
     conditions specified for such grants in the conference report 
     accompanying the Act (H.R. 2099): Provided, That beginning in 
     fiscal year 1996 and each fiscal year thereafter, and 
     notwithstanding any other provision of law, the Administrator 
     is authorized to make grants annually from funds appropriated 
     under this heading, subject to such terms and conditions as 
     the Administrator shall establish, to any State or federally 
     recognized Indian tribe for multimedia or single media 
     pollution prevention, control and abatement and related 
     environmental activities at the request of the Governor or 
     other appropriate State official or the tribe: Provided 
     further, That from funds appropriated under this heading, the 
     Administrator may make grants to federally recognized Indian 
     governments for the development of multimedia environmental 
     programs: Provided further, That of the $1,400,000,000 for 
     capitalization grants for State revolving funds to support 
     water infrastructure financing, $275,000,000 shall be for 
     drinking water State revolving funds, but if no drinking 
     water State revolving fund legislation is enacted by June 1, 
     1996, these funds shall immediately be available for making 
     capitalization grants under title VI of the Federal Water 
     Pollution Control Act, as amended: Provided further, That of 
     the funds made available in Public Law 103-327 and in Public 
     Law 103-124 for capitalization grants for State revolving 
     funds to support water infrastructure financing, $225,000,000 
     shall be made available for capitalization grants for State 
     revolving funds under title VI of the Federal Water Pollution 
     Control Act, as amended, if no drinking water State revolving 
     fund legislation is enacted by June 1, 1996: Provided 
     further, That of the funds made available under this heading 
     for capitalization grants for State Revolving Funds under 
     title VI of the Federal Water Pollution Control Act, as 
     amended, $50,000,000 shall be for wastewater treatment in 
     impoverished communities pursuant to section 102(d) of H.R. 
     961 as approved by the United States House of Representatives 
     on May 16, 1995: Provided further, That of the funds 
     appropriated in the Construction Grants and Water 
     Infrastructure/State Revolving Funds accounts since the 
     appropriation for the fiscal year ending September 30, 1992, 
     and hereafter, for making grants for wastewater treatment 
     works construction projects, portions may be provided by the 
     recipients to States for managing construction grant 
     activities, on condition that the States agree to reimburse 
     the recipients from State funding sources: Provided further, 
     That the funds made available in Public Law 103-327 for a 
     grant to the City of Mt. Arlington, New Jersey, in accordance 
     with House Report 103-715, shall be available for a grant to 
     that city for water and sewer improvements.
       And the Senate agree to the same.
       Amendment numbered 81:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 81, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:

                       Administrative Provisions

       And the Senate agree to the same.
       
[[Page H 14122]]

       Amendment numbered 83:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 83, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:
       Sec. 301. None of the funds provided in this Act may be 
     used within the Environmental Protection Agency for any final 
     action by the Administrator or her delegate for signing and 
     publishing for promulgation of a rule concerning any new 
     standard for radon in drinking water.
       And the Senate agree to the same.
       Amendment numbered 94:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 94, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended as 
     follows:
       In lieu of the sum named in the matter restored, insert: 
     $222,000,000; and the Senate agree to the same.
       Amendment numbered 102:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 102, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $5,456,600,000; and the Senate agree to the same.
       Amendment numbered 104:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 104, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $5,845,900,000; and the Senate agree to the same.
       Amendment numbered 105:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 105; and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $2,502,200,000; and the Senate agree to the same.
       Amendment numbered 109:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 109, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter proposed by said amendment, insert:
       Upon the determination by the Administrator that such 
     action is necessary, the Administrator may, with the approval 
     of the Office of Management and Budget, transfer not to 
     exceed $50,000,000 of funds made available in this Act to the 
     National Aeronautics and Space Administration between such 
     appropriations or any subdivision thereof, to be merged with 
     and to be available for the same purposes, and for the same 
     time period, as the appropriation to which transferred: 
     Provided, That such authority to transfer may not be used 
     unless for higher priority items, based on unforeseen 
     requirements, than those for which originally appropriated: 
     Provided further, That the Administrator of the National 
     Aeronautics and Space Administration shall notify the 
     Congress promptly of all transfers made pursuant to this 
     authority:
       And the Senate agree to the same.
       Amendment numbered 110:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 110, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment, insert: 
     $2,274,000,000; and the Senate agree to the same.
       Amendment numbered 114:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 114, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows:
       Sec. 519. In fiscal year 1996, the Director of the Federal 
     Emergency Management Agency shall sell the disaster housing 
     inventory of mobile homes and trailers, and the proceeds 
     thereof shall be deposited in the Treasury.
       And the Senate agree to the same.
       The committee of conference report in disagreement 
     amendment numbered 63.
     Jerry Lewis,
     Tom DeLay,
     Barbara F. Vucanovich,
     James T. Walsh,
     Dave Hobson,
     Joe Knollenberg,
     Rodney P. Frelinghuysen,
     Mark W. Neumann,
     Bob Livingston,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard Shelby,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Mark O. Hatfield,
     Barbara A. Mikulski,
     Patrick Leahy,
     J. Bennett Johnston,
     Bob Kerrey,
     Robert C. Byrd,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the Senate to the bill (H.R. 2099) making 
     appropriations for the Department of Veterans Affairs and 
     Housing and Urban Development, and for sundry independent 
     agencies, commissions, corporations, and offices for the 
     fiscal year ending September 30, 1996, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS


                    veterans benefits administration

       Amendment No. 1: Earmarks not to exceed $25,180,000 of 
     compensation and pensions funds for payments to the general 
     operating expenses and medical care appropriations to 
     implement savings provisions of authorizing legislation as 
     proposed by the House, instead of $27,431,000 as proposed by 
     the Senate. The additional administrative funds are not 
     required as the limitation on compensation payments to 
     certain incompetent veterans is deleted.
       Amendment No. 2: Appropriates $1,345,300,000 for 
     readjustment benefits as proposed by the House, instead of 
     $1,352,180,000 as proposed by the Senate.
       Amendment No. 3: Deletes language proposed by the Senate 
     earmarking $6,880,000 of the readjustment benefits 
     appropriation for funding costs of the Service Members 
     Occupational Conservation and Training Program. The conferees 
     note that language is included under the general operating 
     expenses appropriation permitting the payment of 
     administrative costs for the Service Members Occupational 
     Conversion and Training Act in fiscal year 1996.


                     veterans health administration

       Amendment No. 4: Appropriates $16,564,000,000 for medical 
     care, instead of $16,777,474,000 as proposed by the House and 
     $16,450,000,000 as proposed by the Senate.
       The conferees note that the amount provided for medical 
     care represents an increase of approximately $400,000,000 
     above the fiscal year 1995 level--and is the only 
     appropriation in the bill with such a significant increase. 
     While not the full amount requested, the increase provided 
     will enable the Department to provide quality care to all 
     veterans currently being served by the VA medical system. The 
     conferees continue to be concerned about the Secretary's 
     refusal to adopt systemic reforms and administrative 
     improvements which would result in significant budgetary 
     savings, without in any way compromising patient care. The 
     Inspector General, the General Accounting Office, the 
     Congressional Budget Office, and the service organizations 
     have suggested changes which, if implemented, would yield 
     hundreds of millions of dollars in administrative savings. As 
     part of the operating plan,the Secretary is to submit a plan 
     to implement the improvements identified by these 
     organizations and any other reforms which would result in 
     administrative savings totaling a minimum of $400,000,000 for 
     fiscal year 1996.
       The conference agreement includes funding for the 
     following:
       +$500,000 for a Low Vision Center in Ophthalmology at the 
     East Orange VA Medical Center.
       +$500,000 for a geriatric patient care program at the Lyons 
     VA Medical Center.
       +$396,000 to provide outpatient care at the Grafton 
     Development Center in Grafton, North Dakota.
       +$300,000 to provide outpatient care in Williamsport, 
     Pennsylvania.
       +$1,500,000 to expand existing community-based outpatient 
     clinics in Wood County and Tucker County, West Virginia.
       +$1,600,000 to establish a primary care clinic in Liberal, 
     Kansas.
       The conference committee is aware of the difficulty in 
     staffing several VA facilities in the southwest, particularly 
     in El Paso, Texas. This situation is compounded by budgetary 
     constraints the VA faces in allocating FTEE's among its 
     facilities. The conferees urge that the VA, through the 
     veterans integrated service networks, engage in intra-VISN 
     FTEE transfers during the fiscal year for purposes of 
     staffing as warranted by changing circumstances in VA medical 
     facilities. The conferees also urge the Department to review 
     the staffing situation in El Paso and to move personnel as 
     necessary to meet the new service demands that will exist if 
     veterans are not required to travel to other VA facilities 
     for treatment.
       The conferees commend the Department for its participation 
     in an advanced coal technology project at the Lebanon, 
     Pennsylvania VA Medical Center in which a fluidized bed 
     boiler will co-fire coal and medical wastes to provide steam 
     for the hospital. Given the potential cost savings for energy 
     and hospital waste disposal, the conferees direct the 
     Department to study the potential for using this technology 
     at other VA facilities.
       The conference committee strongly urges VA to develop a 
     center to coordinate academic training programs for physical 
     therapists at the Brooklyn VA hospital. The conferees are 
     aware there is a shortage of physical therapists nationwide. 
     A training center would provide the opportunity for students 
     to complete research projects in physical therapy and 
     rehabilitation. In view of the critical shortage of clinical 
     training sites in the New York City area, the Brooklyn VA 
     would provide an excellent location for such a training 
     program.
       The conferees note with considerable interest that the VA 
     has used laser-imaging, non-silver, dry-medium technology to 
     provide high resolution hard copy images for X-ray 
     examinations in various hospitals around the country. This 
     type of system produces faster 

[[Page H 14123]]
     diagnosis, with attendant cost savings, and is environmentally safe. 
     Accordingly, the conferees strongly encourage the VA to 
     expand the use of this type of technology in all of its 
     facilities.
       The VA plans to expand access to outpatient care. These 
     access points are being considered in more than 180 
     locations. The conferees are concerned with associated 
     policy, legal, and budgetary issues and expect the VA to 
     address these matters before proceeding with such expansion 
     plans.
       The conferees understand that the Department expends 
     approximately $212,000,000 annually on utility costs. 
     Opportunities for creative private sector funding of energy 
     efficiency programs exist through procurements sanctioned by 
     the Department of Energy's Federal Energy Management Program. 
     The VA is encouraged to explore such opportunities, and, 
     where appropriate, to take advantage of them.
       Questions have been raised concerning the expansion of the 
     Los Angeles National Cemetery by utilizing open space at the 
     West Los Angeles VA Medical Center. The conferees direct that 
     no property disposal, leasing action or capital improvements 
     be taken that would jeopardize the Government's title to any 
     land at the West Los Angeles VA Medical Center until all 
     options have been reviewed by the VA and the Congress.
       The VA is encouraged to create outpatient clinics, 
     especially to help veterans in rural areas. Specifically, the 
     conferees encourage the establishment of outpatient clinics 
     in Lynn, Massachusetts and Gainesville, Georgia. The VA also 
     is strongly encouraged to establish an orthopedic clinic at 
     the Muskogee VA Medical Center. Such a clinic should be 
     staffed by an orthopedist at least three days a week.
       Amendent No. 5: Deletes language proposed by the Senate 
     enabling the VA to treat veterans eligible for hospital care 
     or medical services in the most efficient manner. In deleting 
     this language, the conferees wish to make clear that they 
     support budget neutral eligibility reform. Current 
     eligibility requirements for VA medical care are in need of 
     simplification and reform. Such legislation will, within any 
     given dollar amount, permit the medical treatment of a 
     greater number of veterans on an outpatient basis, as 
     compared to the current approach which emphasizes inpatient 
     treatment.
       Amendment No. 6: Appropriates $257,000,000 for medical and 
     prosthetic research as proposed by the Senate, instead of 
     $251,743,000 as proposed by the House. The conferees agree 
     that the recommended amount includes $1,250,000 to establish 
     an Office of Veterans Affairs Technology Transfer Center.
       Amendment No. 7: Deletes language proposed by the House and 
     stricken by the Senate appropriating $10,386,000 for the 
     health professional scholarship program.


                      departmental administration

       Amendment No. 8: Appropriates $848,143,000 for general 
     operating expenses, instead of $821,487,000 as proposed by 
     the House and $872,000,000 as proposed by the Senate. 
     Language has been inserted to limit funding for General 
     Administration activities, and the number of schedule C and 
     non-career senior executive service positions. Language is 
     also inserted to permit up to $6,000,000 of the appropriation 
     to be used for administrative expenses of the housing loan 
     guaranty programs.
       The conference agreement includes the following changes 
     from the budget estimate:
       -$32,000,000 in the Veterans Benefits Administration as an 
     offset to legislation carried in the VA administrative 
     provisions which permits excess revenues in three insurance 
     funds to be used for administrative expenses.
       -$25,500,000 in the Veterans Benefits Administration as an 
     offset to the provision carried under this heading permitting 
     the $25,500,000 earmarked in the 1995 Appropriations Act for 
     VBA's modernization program to be available for the general 
     purposes of the account.
       -$7,423,000 (as a minimum) to be taken from the 
     $221,532,000 appropriation requested for General 
     Administration activities. This will permit not to exceed 
     $214,109,000, the 1995 level, for such activities. The 
     conferees intend that to the maximum extent possible all 
     reductions in General Administration and Veterans Benefits 
     Administration be taken from central office activities.
       -$2,577,000 as a general reduction in Veterans Benefits 
     Administration activities, subject to normal reprogramming 
     procedures. To continue improving the timeliness of claims, 
     the conferees do not intend that any reduction in funding be 
     applied to the compensation, pensions, and education program. 
     The conferees further intend that VBA will utilize $1,000,000 
     for a study by the National Academy of Public Administration 
     of the claims processing system. The conferees agree that the 
     NAPA report should build upon and not duplicate any previous 
     or ongoing evaluations of the Veterans Benefits 
     Administration. NAPA is to coordinate with those entities 
     which have conducted evaluations in the past and provide to 
     the Department and the appropriate Committees of Congress a 
     detailed and specific implementation plan for the 
     recommendations it makes.
       Language is included to limit to not to exceed $214,109,000 
     for General Administration costs, including not to exceed 
     $2,450,000 for salaries and $50,000 for travel costs of the 
     Office of the Secretary; $4,392,000 for salaries and $75,000 
     for travel costs of the Office of the Assistant Secretary for 
     Policy and Planning; $1,980,000 for salaries and $33,000 for 
     travel costs of the Office of the Assistant Secretary for 
     Congressional Affairs; and $3,500,000 for salaries and 
     $100,000 for travel costs of the Office of the Assistant 
     Secretary for Public and Intergovernmental Affairs. The 
     balance of the savings is to be taken at the discretion of 
     the VA, subject to normal reprogramming procedures, from 
     funds requested for the Office of the Assistant Secretary for 
     Human Resources and Administration, the Office of General 
     Counsel, and the Office of the Assistant Secretary for 
     Acquisition and Facilities.
       Language has also been included that would limit the number 
     of schedule C employees to 11 and the number of non-career 
     senior executive service positions to 6 in fiscal year 1996.
       Language has also been included to permit up to $6,000,000 
     of general operating expenses funds to be used for 
     administrative expenses of the loan guaranty and insured 
     loans programs. The VA has requested this provision so as to 
     avoid furloughs.
       Amendment No. 9: Appropriates $136,155,0009 for 
     construction, major projects, instead of $183,455,000 as 
     proposed by the House and $35,785,000 as proposed by the 
     Senate.
       The conference agreement includes the following changes 
     from the budget estimate:
       -$146,900,000 from the $154,700,000 requested for the new 
     medical center and nursing home project in Brevard County, 
     Florida. The balance of the request, $7,800,000, together 
     with $17,200,000 appropriated in 1995, will provide 
     $25,000,000 for the design and construction of a 
     comprehensive medical outpatient clinic in Brevard County, 
     Florida. The conferees expect the VA to commence construction 
     of this project as soon as possible.
       -$163,500,000 from the $188,500,000 requested for the VA/
     Air Force joint venture at Travis Air Force Base in 
     Fairfield, California. The balance of the request, 
     $25,000,000, is for the design and construction of an 
     outpatient clinic project at Travis Air Force Base. The 
     conferees recognized that the VA's preliminary cost estimate 
     for this project is $39,500,000. The VA should evaluate the 
     needs of the veterans in the area for outpatient services and 
     report such findings to the Committees on Appropriations.
       +$1,000,000 for design of a new national cemetery in the 
     Albany, New York area.
       $5,000,000 for design of an ambulatory care addition, 
     patient privacy and environmental improvements project at the 
     Wilkes-Barre, Pennsylvania VA Medical Center.
       $4,000,000 for the relocation of medical school functions 
     at the Mountain Home, Tennessee VA Medical Center.
       $1,500,000 for design of an ambulatory care addition 
     project at the Asheville, North Carolina VA Medical Center.
       +$1,400,000 for design of a new national cemetery in the 
     Joliet, Illinois area.
       -$9,000,000 for renovation of nursing units at the Lebanon, 
     Pennsylvania VA Medical Center.
       -$11,500,000 for environmental improvements at the Marion, 
     Illinois VA Medical Center.
       -$17,300,000 for replacement of psychiatric beds at the 
     Marion, Indiana VA Medical Center.
       -$15,100,000 for renovation of psychiatric wards at the 
     Perry Point, Maryland VA Medical Center.
       -$17,200,000 for environmental enhancements at the 
     Salisbury, North Carolina VA Medical Center.
       -$10,000,000 from the $17,500,000 requested for the advance 
     planning fund.
       The conferees have approved major construction funding only 
     for those projects which do not require further 
     authorization. While many of the projects requested in the 
     budget are meritorious, without an authorization no funding 
     can be obligated. The Department should utilize minor 
     construction funds to meet life safety or code deficiencies 
     and to ensure compliance with Joint Commission on 
     Accreditation of Healthcare Organizations criteria.
       The conferees believe that the Department must assemble a 
     long-term plan for its infrastructure and construction needs, 
     taking into consideration an increasingly constrained 
     budgetary environment, a decline in the veteran population, 
     shifting demographics, the need to provide more equitable 
     access to veterans medical care systemwide, changes in health 
     care delivery methods, and any policy changes the VA adopts 
     with respect to access points. It is expected that the fiscal 
     year 1997 budget request for major construction funding will 
     be predicated on an analysis incorporating all such 
     variables.
       Amendment No. 10: Appropriates $190,000,000 for 
     construction, minor projects, as proposed by the Senate, 
     instead of $152,934,000 as proposed by the House. The 
     conferees agree that this appropriation account should be 
     used to meet any critical requirements, such as safety and 
     fire code deficiencies, at facilities which were denied major 
     construction funding in 1996.


                       administrative provisions

       Amendment No. 11: Inserts language proposed by the Senate 
     authorizing the VA to convey property to the Federal Highway 
     Administration which is necessary for the modernization of 
     U.S. Highway 54 in Wichita, Kansas.
       Amendment No. 12: Deletes language proposed by the Senate 
     authorizing the VA to use supply fund resources for an 
     acquisition computer network.
       Amendment No. 13: Deletes language proposed by the Senate 
     regarding access to VA 

[[Page H 14124]]
     medical care for veterans in Hawaii, and deletes language in the 
     administrative provisions which would limit compensation 
     payments to certain incompetent veterans.
       In deleting the Senate language, the conferees wish to make 
     clear their concern that veterans in the State of Hawaii do 
     not have access to veterans medical care comparable to that 
     of veterans in the forty-eight contiguous states. Through 
     sharing arrangements with the Tripler Army hospital and 
     community facilities, and existing VA outpatient clinics, the 
     Department is to ensure adequate and equitable access to care 
     for Hawaii's veterans. Furthermore, VA should provide care 
     within the State whenever possible rather than transferring 
     patients to the West Coast for acute care services, which is 
     extremely inconvenient for veterans and their families.
       The conferees have agreed to delete language carried in 
     sec. 107 of the VA's administrative provisions limiting 
     compensation payments to certain incompetent veterans.
       Amendment No. 14: Deletes language proposed by the Senate 
     requiring the Secretary to develop a plan for the allocation 
     of VA health care resources to remedy discrepancies in the 
     allocation of funds to VA facilities across the country.
       The conferees are concerned that VA's allocation of 
     resources has not resulted in equal access to health care 
     services for veterans nationally. Despite implementation of 
     the resource planning and management system several years 
     ago, VA has not shifted resources sufficiently to meet 
     changing demand.
       The conferees recognize the Veterans Health Administration 
     recently reorganized into veterans integrated service 
     networks and expect that the reorganization will result in a 
     more equitable allocation of resources nationally. To ensure 
     that this occurs, the conferees direct the Department to 
     develop a plan to allocate resources in a manner that will 
     result in equal access to medical care for veterans and will 
     take into account projected changes in the workload of each 
     facility. The plan should reflect the RPM system to account 
     for forecasts in expected workload and should recognize 
     facilities that provide cost-effective health care. The plan 
     shall include procedures to identify reasons for variations 
     in operating costs among similar facilities and ways to 
     improve the allocation of resources so as to promote 
     efficient use of resources and provision of high quality 
     care.
       Amendment No. 15: Inserts language permitting the transfer 
     of not to exceed $4,500,000 of 1996 medical care funds to the 
     medical and administration and miscellaneous operating 
     expenses account, instead of $5,700,00 as proposed by the 
     Senate.
       The conference agreement includes permissive transfer 
     authority of up to $4,500,000 from the medical care account 
     to the MAMOE account to help alleviate possible furloughs. 
     The conferees wish to make clear, however, that any transfer 
     is to occur only through the normal reprogramming procedures. 
     It is expected that the central office medical staffing 
     funded through this account will reduced to 600 by the end of 
     the fiscal year 1996.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                            housing programs

       Amendment No. 16: Appropriates $10,155,795,000 for annual 
     contributions for assisted housing, instead of 
     $10,182,359,000 as proposed by the House and $5,594,358,000 
     as proposed by the Senate. The conferees expect the 
     Department and the Office of Management and Budget to adhere 
     to the 1996 program detailed in the following table:

                 ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING FISCAL YEAR 1996--GROSS RESERVATIONS                 
----------------------------------------------------------------------------------------------------------------
                                                               Units       Cost       Term     Budget authority 
----------------------------------------------------------------------------------------------------------------
New authority..............................................         NA         NA         NA     $10,155,795,000
New spending:                                                                                                   
    Public housing modernization...........................         NA         NA         NA       2,500,000,000
    Indian housing.........................................      1,603    $99,800         NA         160,000,000
    Section 202 elderly....................................      9,654       [NA]       [NA]         780,190,000
    Section 811 disabled...................................      2,915       [NA]       [NA]         233,168,000
    HOPWA..................................................      6,400       [NA]       [NA]         171,000,000
    Section 8 replacement assistance.......................     35,398     $5,650          2         400,000,000
    [Witness relocation]...................................         NA         NA         NA         [2,500,000]
    Preservation...........................................         NA         NA         NA         624,000,000
    Property disposition...................................         NA         NA         NA         261,000,000
    Lead-based paint.......................................         NA         NA         NA          65,000,000
    Family self-sufficiency................................         NA         NA         NA  ..................
    Section 8 amendments...................................         NA         NA         NA       4,350,862,000
    Section 8 contract renewals............................    435,028     $5,680      \1\ 2         610,575,000
                                                            ----------------------------------------------------
      Total................................................    490,998         NA         NA     10,155,795,000 
----------------------------------------------------------------------------------------------------------------
\1\ Loan management set-asides are renewed for one year.                                                        

       Including these funding levels, the House and Senate agree 
     to the resolution of the following issues:
       Deletes language proposed by the House and stricken by the 
     Senate to establish an outlay cap of $19,939,311,000 for the 
     annual contributions for assisted housing account.
       Provides $160,000,000 for Indian housing development, 
     instead of $100,000,000 as proposed by the House and 
     $200,000,000 as proposed by the Senate.
       Provides $2,500,000,000 for public housing modernization as 
     proposed by the House, instead of $2,510,000,000 as proposed 
     by the Senate.
       Deletes language proposed by the House and stricken by the 
     Senate to provide the Secretary authority to direct any 
     housing authority that receives modernization funds under 
     this Act, or has yet to obligate rehabilitation funds from 
     prior year appropriations Acts, to demolish, reconfigure, or 
     reduce the density of any public housing project owned by the 
     housing authority.
       Deletes language proposed by the House and stricken by the 
     Senate to provide $15,000,000 for the tenant opportunity 
     program as a setaside from the public housing modernization 
     program. Funding for this activity is provided as a separate 
     setaside under the community development block grant program.
       Inserts language proposed by the Senate to set aside funds 
     from the public housing modernization program for technical 
     assistance, but at a modified funding level of $20,000,000, 
     instead of $30,000,000 as proposed.
       Provides $400,000,000 for section 8 rental assistance, 
     instead of $862,000,000 as proposed by the House and 
     $240,000,000 as proposed by the Senate.
       Inserts language proposed by the Senate to provide such 
     section 8 rental assistance under only certain circumstances, 
     including new language to allow funds to be used for witness 
     relocation assistance in conjunction with the safe home 
     initiative.
       Restores language proposed by the House and stricken by the 
     Senate to allow such section 8 rental assistance to be used 
     in connection with subsequent authorizing legislation.
       Deletes appropriations language establishing a special 
     needs housing fund for multiple purposes as proposed by the 
     House.
       Provides $780,190,000 for section 202 elderly housing as 
     proposed by the Senate, instead of an unspecified earmark as 
     proposed by the House under the special needs housing 
     appropriation. Such funding will assist 9,654 elderly 
     households, the same number as provided for in fiscal year 
     1995.
       Provides $233,168,000 for section 811 disabled housing as 
     proposed by the Senate, instead of an unspecified earmark as 
     proposed by the House under the special needs housing 
     appropriation. Such funding will assist at least 2,915 
     disabled households, the number as provided for in fiscal 
     year 1995. This figure is likely to be higher because 
     language is added permitting the Secretary to use up to 25 
     percent of the funds provided to be used for section 8 
     vouchers to serve the same population. Such assistance must 
     have a contract term of five years.
       Provides $171,000,000 for the housing opportunities for 
     persons with AIDS program, instead of an unspecified earmark 
     as proposed by the House under the special needs housing 
     appropriation. Such funding will assist 6,400 households and 
     matches the amount of funding provided for in fiscal year 
     1995.
       Inserts language proposed by the House and agreed to by the 
     Senate to allow the Secretary to waive any provision of the 
     section 202 and 811 programs, including the terms and 
     conditions of project rental assistance.
       Deletes language proposed by the House and stricken by the 
     Senate to allow the Secretary to use up to $200,000,000 of 
     unobligated carryover balances of the annual contributions 
     for assisted housing account to implement preservation 
     legislation enacted subsequent to this Act.
       Provides $624,000,000 for the Emergency Low Income 
     Preservation Act of 1987, as amended, and the Low Income 
     Housing Preservation and Resident Homeownership Act of 1990, 
     as amended. Until July 1, 1996, such funding will be limited 
     to sales of projects to non-profit organizations, tenant-
     sponsored organizations, and other priority purchasers. Up to 
     $10,000,000 of this amount will be available for preservation 
     technical assistance grants pursuant to section 253 of the 
     Housing and Community Development Act of 1987, as amended. 
     With respect to funds remaining available after July 1, 1996, 
     the Secretary may determine priorities for distributing such 
     funds, including giving priority to tenants displaced due to 
     mortgage prepayment 

[[Page H 14125]]
     and to projects that have not yet been funded but which have approved 
     plans of action, if the Secretary determines that demand for 
     funding exceeds amounts remaining. In addition, the Secretary 
     may impose a temporary moratorium on applications by 
     potential recipients of such funding.
       The legislation also provides owners the opportunity to 
     prepay their mortgages or request voluntary termination of a 
     mortgage insurance contract, as long as the owner agrees not 
     to increase rents for 60 days after such prepayment. This 
     condition is necessary in order to allow HUD time to make 
     available rental assistance for eligible families who desire 
     to stay or move.
       As a condition of eligibility for preservation funds under 
     this Act, the legislation establishes a threshold of the 
     lesser of $5,000 per unit, $500,000 per project, or eight 
     times the local fair market rent for each unit in 
     preservation equity. This is intended to direct federal 
     resources at those projects with the greatest likelihood of 
     prepayment.
       The Secretary also may modify the regulatory agreement to 
     permit owners and priority purchasers to retain rental income 
     in excess of the basic rental charge in projects assisted 
     under section 236. In addition, the Secretary may give 
     priority to funding obligated not later than August 1, 1996 
     for the following purposes: (1) projects with approved plans 
     of action to retain the housing that file a modified plan of 
     action not later than July 1, 1996 to transfer the housing; 
     (2) projects with approved plans of action that are subject 
     to a repayment or settlement agreement that was executed 
     between the owner and the Secretary prior to September 1, 
     1995; (3) projects for which submissions were delayed as a 
     result of their location in areas that were designated as a 
     federal disaster area in a Presidential Disaster Declaration; 
     and (4) projects that have submitted an appraisal to the New 
     York State office.
       Notwithstanding any other provision of law, subject to the 
     availability of appropriated funds, each unassisted low-
     income family residing in the housing on the date of 
     prepayment, and whose rent, as a result of prepayment exceeds 
     30 percent of adjusted income, shall be offered tenant-based 
     assistance in accordance with section 8 or any successor 
     program, under which the family shall pay rent not less than 
     that rent paid on such date. Any eligible family receiving 
     such tenant-based assistance may elect to remain in the 
     housing and if the rent is in excess of the fair market rent 
     or payment standard, as applicable, the rent shall be deemed 
     the applicable standard, so long as the administering public 
     housing agency deems that the rent is reasonable in 
     comparison to rents charged for comparable unassisted housing 
     units in the market. In instances where eligible families 
     move with such assistance to other private rental housing, 
     the rent will be subject to the fair market rent or the 
     payment standard, as applicable, under existing rules and 
     procedures.
       The resources provided by conferees under this Act for the 
     preservation program ought not to be considered another 
     payment in a long list of federal preservation program 
     payments, but as the last payment for addressing preservation 
     in this manner. Included in this section is a provision to 
     effectively terminate the preservation program after October 
     1, 1996. Unless this program is substantially reformed, 
     Congress will appropriate only rental assistance for eligible 
     residents of projects where owners have decided to prepay. 
     Such assistance will allow residents to stay in the same 
     housing at the same cost or move to other private housing.
       Provides $65,000,000 for lead-based paint activities, 
     including abatement grants, instead of $10,000,000 as 
     proposed by the House and $75,000,000 as proposed by the 
     Senate.
       Deletes $17,300,000 for family self-sufficiency 
     coordinators as proposed by the House and stricken by the 
     Senate. Such activities are eligible under the public and 
     assisted housing services setaside under the community 
     development block grant program.
       Provides $4,350,862,000 for the renewal of expiring section 
     8 contracts, instead of $4,641,589,000 as proposed by the 
     House. The Senate had proposed $4,350,862,000 for section 8 
     contract renewals under a separate appropriations heading.
       Restores language proposed by the House and stricken by the 
     Senate to merge funds provided for section 8 contract 
     renewals with annual contributions for assisted housing.
       The following table identifies expected section 8 contract 
     renewal costs for fiscal year 1996:

                SECTION 8--RENEWAL OF EXPIRING CONTRACTS                
                         [Dollars in thousands]                         
------------------------------------------------------------------------
                                                             1996 Budget
                                                   Units      authority 
------------------------------------------------------------------------
Certificates..................................      241,206   $2,993,597
Vouchers......................................       58,798      729,739
LMSA..........................................      120,587      475,354
Property Disposition..........................        4,464       35,194
Moderate Rehabilitation.......................        8,016       99,486
New Construction/Substantial Rehabilitation...        1,957       17,492
                                               -------------------------
      Total...................................      435,028    4,350,862
------------------------------------------------------------------------
Note: Totals may not add due to rounding.                               

       Restores language proposed by the House and stricken by the 
     Senate to allow the use of section 8 contract renewal funds 
     with subsequently enacted legislation.
       Inserts language to allow the Secretary to renew housing 
     vouchers without regard to section 8(o)(6)(B) of the Housing 
     Act of 1937, a provision requiring HUD to budget an 
     additional 10 percent to cover long-term inflation 
     adjustments for housing vouchers. The Senate had proposed 
     identical language under its separate heading for section 8 
     contract renewals.
       Provides $610,575,000 for section 8 contract amendments as 
     proposed by the House, instead of $500,000,000 as proposed by 
     the Senate.
       Provides $261,000,000 for property disposition as proposed 
     by the Senate, instead of no funding as proposed by the 
     House.
       Inserts language proposed by the Senate to allow the 
     Secretary to manage and dispose of multifamily properties 
     owned by HUD and multifamily mortgages held by HUD with 
     regard to any other provision of law.
       Inserts language proposed by the Senate to allow state 
     housing finance agencies, local governments, or local housing 
     agencies to keep 50 percent of the savings from refinancing 
     housing projects, as specified under section 1012(a) of the 
     Stewart B. McKinney Homeless Assistance Act of 1988. The 
     other 50 percent of budget authority savings shall be 
     rescinded, or in the case of cash, remitted to the U.S. 
     Treasury.
       Provides $280,000,000 for the public housing demolition, 
     site revitalization, and replacement housing grants program. 
     The Senate proposed $500,000,000 for this activity and the 
     House nothing.
       Inserts language identifying eligible uses of these funds, 
     as proposed by the Senate. Conferees agree funds are needed 
     to assist housing authorities in the demolition of obsolete 
     public housing. However, the conferees are concerned about 
     the Department's use of waiver authority under the 
     Department's total development cost (TDC) controls. Upon 
     waiving such controls, the conferees direct the Department to 
     notify the appropriate committees of Congress.
       Deletes separate appropriation for the assistance for the 
     renewal of expiring section 8 subsidy contracts as proposed 
     by the Senate and all other language under this heading.
       Amendment No. 17: Appropriates $2,800,000,000 for payments 
     for the operation of public housing projects as proposed by 
     the Senate, instead of $2,500,000,000 as proposed by the 
     House.
       The conferees are concerned that the funding formula 
     applied to Puerto Rico, which has always been excluded from 
     the Performance Funding System (PFS) under the operating 
     expense subsidy program of the U.S. Housing Act of 1937, may 
     have led to the inequitable treatment for Puerto Rico as 
     compared to the states, and even other non-PFS territories. 
     Consistent with overall objectives of streamlining programs 
     and funding, allowable expense levels (AELs) should be fairly 
     and effectively allocated among all jurisdictions, both 
     inside and outside the PFS system. The conferees encourage 
     HUD to study the AEL formula for Puerto Rico to determine if 
     it accurately reflects the actual costs to operate decent and 
     affordable assisted housing in Puerto Rico.
       Amendment No. 18: Appropriates $290,000,000 for Drug 
     Elimination Grants for Low-Income Housing as proposed by the 
     Senate, instead of the proposed consolidation of these 
     functions into the public housing modernization program as 
     proposed by the House. Of this amount, the conferees earmark 
     $10,000,000 for technical assistance grants and $2,500,000 
     for the Safe Home initiative. In addition, the conferees 
     agree to language in the Senate bill that would redefine 
     ``drug-related crime'' as determined by the HUD Secretary.
       In order to defer to the committees of jurisdiction, the 
     conferees delete language proposed by the Senate to allow the 
     Secretary to distribute Drug Elimination Grants funds through 
     a formula allocation.
       Amendment No. 19: Deletes language proposed by the House 
     and stricken by the Senate to provide $12,000,000 for housing 
     counseling under a separate appropriations heading. Instead, 
     $12,000,000 is provided for identical housing counseling 
     activities as an earmark under the Community Development 
     Block Grants program.
       Amendment No. 20: Deletes language proposed by the Senate 
     on describing how homeless assistance funds will be 
     distributed, including language permitting the Secretary to 
     distribute homeless funds under a formula allocation.
       Amendment No. 21: Inserts technical correction to the 
     language as proposed by the Senate.
       Amendment No. 22: Deletes language proposed by the House 
     and stricken by the Senate to make eligible the Innovative 
     Homeless Initiatives Demonstration program under Homeless 
     Assistance Grants. The authorization for this initiative 
     terminated the demonstration as of September 30, 1995.
       Amendment No. 23: Appropriates $823,000,000 for Homeless 
     Assistance Grants, instead of $676,000,000 as proposed by the 
     House and $760,000,000 as proposed by the Senate. This amount 
     is equivalent to a funding freeze for homeless programs 
     instead of a reduction. In fiscal year 1994, the 
     appropriations for HUD homeless programs totaled 
     $823,000,000. In fiscal year 1995, Public Law 104-19 deferred 
     the availability of $297,000,000 of the original 
     appropriations of $1,120,000,000 until September 30, 1995, 
     effectively reducing the fiscal year 1995 program level to 
     $823,000,000.
       The conferees remain concerned that HUD homeless programs 
     put too much emphasis on short-term solutions instead of 
     long-term comprehensive strategies. To the maximum extent 
     practicable, the conferees direct the Department to allocate 
     homeless assistance grants under the Shelter Plus Care 
     program 

[[Page H 14126]]
     which requires a dollar-for-dollar match of services for HUD housing 
     assistance. Homeless assistance of nearly $1,000,000,000 is 
     small compared to the $12,000,000,000 of federal service 
     dollars that serve much of this same population. Homeless 
     studies, such as the 1990 Annual Report of the Interagency 
     Council on the Homeless, show that housing in combination 
     with appropriate services is the most effective way of 
     permanently reducing homelessness. The conferees recognize 
     that a one-size-fits-all approach does not recognize the 
     diversity among communities and the diverse needs of the 
     homeless population.
       Amendment No. 24: Deletes language proposed by the Senate 
     to allow Homeless Assistance Grants to be distributed by 
     formula in fiscal year 1996. The conferees defer to the 
     authorizing committees to determine an adequate program 
     formula over the coming months. Language is also deleted 
     requiring the Secretary to complete a study on how to merge 
     homeless assistance programs under the Stewart B. McKinney 
     Homeless Assistance Act with the HOME program.
       Amendment No. 25: Appropriates $50,000,000 for grants to 
     Indian tribes instead of $46,000,000 as proposed by the House 
     and $60,000,000 as proposed by the Senate.
       Amendment No. 26: Inserts language proposed by the Senate 
     to provide $2,000,000 for the Housing Assistance Council and 
     $1,000,000 for the National American Indian Housing Council 
     as setasides under the Community Development Block Grants 
     program. The House had proposed funding these two councils at 
     the same level as setasides under the HUD salaries and 
     expenses account.
       Amendment No. 27: Appropriates $27,000,000 for Section 107 
     grants as proposed by the Senate instead of $19,500,000 as 
     proposed by the House. The conferees are in agreement that 
     Section 107 funding includes $7,000,000 for insular areas, 
     $6,000,000 for work study (including $3,000,000 for Hispanic-
     serving institutions), $6,500,000 for historically black 
     colleges and universities (HBCUs), and $7,500,000 for the 
     community outreach partnership program.
       The conferees urge HUD to use community outreach 
     partnership funds to support new and existing planning grants 
     to universities located in and around urban areas with high 
     minority populations, low standards of living and large 
     numbers of empty or abandoned dwellings. Priority ought to be 
     given to proposals that seek to address community problems 
     comprehensively and in partnership with local government, and 
     consideration should be made for projects which include HBCUs 
     as local partners.
       The conferees are aware of an innovative business 
     development center proposal of Hofstra University which will 
     coordinate and target educational and technical assistance 
     activities designed to foster economic development and job 
     creation on Long Island. The proposal mirrors the goals of 
     the Community Outreach Partnership program and therefore the 
     Department is urged to carefully review this proposal in 
     connection with the funding recommended for this activity.
       Amendment No. 28: Inserts technical correction to the 
     language as proposed by the Senate.
       Amendment No. 29: Inserts language proposed by the Senate 
     to permanently extend homeownership activities as an eligible 
     use of CDBG funds.
       Amendment No. 30: Inserts language proposed by the Senate 
     to extend for one year a set-aside for Colonias of up to 10% 
     of state CDBG allocations for the U.S. border states of 
     Arizona, California, New Mexico, and Texas.
       Amendment No. 31: Inserts language proposed by the Senate 
     and amended by the House to provide $53,000,000 as a set-
     aside from the CDBG program for public and assisted housing 
     supportive services. The amended language also earmarks 
     $15,000,000 for the Tenant Opportunity Program, $12,000,000 
     for Housing Counseling activities, and $20,000,000 for the 
     Youthbuild program. With regard to the Tenant Opportunity 
     Program, this set-aside represents a 40 percent reduction 
     from last year's funded level of $25,000,000. The conferees 
     have been made aware of recent abuses in this program and 
     direct the Department to eliminate such abuses if the program 
     is to receive additional funding. Conferees agree this is the 
     last year of appropriations funding for Youthbuild as a 
     separate earmark and anticipate that Youthbuild will become 
     an eligible activity under CDBG or another block grant in the 
     coming year, to be determined by the appropriate authorizing 
     committees. The conferees delete funding proposed by the 
     Senate for Economic Development Initiatives at $80,000,000.
       Amendment No. 32: Appropriates $31,750,000 for credit 
     subsidies for the Section 108 loan guarantee program instead 
     of $15,750,000 as proposed by the Senate, and $10,500,000 as 
     proposed by the House.
       Amendment No. 33: Establishes a loan limitation of 
     $1,500,000,000 for the Section 108 loan guarantee program as 
     proposed by the Senate, instead of $1,000,000,000 as proposed 
     by the House, and inserts language to waive the aggregate 
     loan limitation.
       Amendment No. 34: Appropriates $675,000 for administrative 
     expenses of the Section 108 loan guarantee program as 
     proposed by the Senate, instead of $225,000 as proposed by 
     the House.
       Amendment No. 35: Inserts language for the reuse of a grant 
     for Buffalo, New York for the central terminal and other 
     public facilities in Buffalo, New York.
       Amendment No. 36: Appropriates $30,000,000 for fair housing 
     activities to be operated by HUD, instead of providing 
     $30,000,000 for these activities to be funded under the 
     Department of Justice, as proposed by the Senate. Language is 
     added to limit eligibility under the fair housing initiatives 
     program (FHIP) to only qualified fair housing enforcement 
     organizations, as proposed by the Senate. The House and 
     Senate conferees strongly support the enforcement of fair 
     housing laws, but are concerned that FHIP funds have been 
     used by non-traditional fair housing groups in a manner that 
     is inconsistent with the program's intent to enforce fair 
     housing laws. The conferees direct the Department to provide 
     the Committees on Appropriations an opportunity to review the 
     new standard of qualified fair housing organizations prior to 
     awarding fiscal year 1996 FHIP funds. The House has proposed 
     $30,000,000 for fair housing activities, but only for the 
     fair housing assistance program (FHAP).
       Amendment No. 37: Appropriates $962,558,000 for salaries 
     and expenses, instead of $951,988,000 as proposed by the 
     House and $980,777,000 as proposed by the Senate. The 
     Department is to distribute the general reduction, subject to 
     normal reprogramming guidelines. In addition, the conferees 
     direct the Department to outline when and how future staffing 
     reductions will occur to meet the Administration's goal of 
     7,500 HUD employees by fiscal year 2000. To the extent 
     reductions are needed to take place in fiscal year 1996 to 
     meet fiscal year 2000 staffing goals, the conferees urge the 
     Department to utilize early in the fiscal year any resources 
     needed to achieve such purpose.
       Amendment No. 38: Authorizes the use of $532,782,000 for 
     salaries and expenses from the various funds of the Federal 
     Housing Administration as proposed by the Senate, instead of 
     $505,745,000 as proposed by the House.
       Amendment No. 39: Authorizes the use of $9,101,000 for 
     salaries and expenses from the funds of the Government 
     National Mortgage Association as proposed by the Senate, 
     instead of $8,824,000 as proposed by the House.
       Amendment No. 40: Authorizes the use of $675,000 for 
     salaries and expenses from the Community Development Grants 
     program account as proposed by the Senate, instead of 
     $225,000 as proposed by the House.
       Amendment No. 41: Appropriates $47,850,000 for salaries and 
     expenses of the Office of Inspector General, instead of 
     $47,388,000 as proposed by the House and $48,251,000 as 
     proposed by the Senate.
       Amendment No. 42: Authorizes the use of $11,283,000 for 
     salaries and expenses of the Office of Inspector General from 
     the various funds of the Federal Housing Administration as 
     proposed by the Senate, instead of $10,961,000 as proposed by 
     the House.
       Amendment No. 43: Restores language proposed by the House 
     and deleted by the Senate to appropriate $14,895,000 for the 
     Office of Federal Housing Enterprise Oversight (OFHEO).
       Amendment No. 44: Inserts language proposed by the Senate 
     to allow the Secretary to sell up to $4,000,000,000 of 
     assigned mortgage notes under the FHA Mutual Mortgage 
     Insurance (FHA-MMI) Program account and use any negative 
     credit subsidy amounts from such sales during fiscal year 
     1996 for the disposition of properties or notes under the 
     FHA-MMI program.
       Amendment No. 45: Appropriates $341,595,000 for 
     administrative expenses of the guaranteed and direct loan 
     programs of the FHA-MMI program account as proposed by the 
     Senate, instead of $308,846,000 as proposed by the House.
       Amendment No. 46: Authorizes the transfer of $334,483,000 
     for departmental salaries and expenses from the FHA-MMI 
     program account as proposed by the Senate, instead of 
     $308,290,000 as proposed by the House.
       Amendment No. 47: Authorizes the transfer of $7,112,000 for 
     the Office of Inspector General from the FHA-MMI program 
     account as proposed by the Senate, instead of $6,790,000 as 
     proposed by the House.
       Amendment No. 48: Appropriates $85,000,000 for credit 
     subsidies under the FHA-General and Special Risk Insurance 
     (FHA-GI/SRI) program account, as authorized by Sections 238 
     and 519 of the National Housing Act, instead of $100,000,000 
     as proposed by Senate. It is the understanding of the 
     conferees that when these funds are combined with new 
     statutory authority to use net asset sales proceeds for 
     additional credit subsidies, the combined program level will 
     exceed $100,000,000. Under a different proviso stricken by 
     the Senate, the House proposed $69,620,000 for these 
     activities.
       Amendment No. 49: Inserts technical correction to the 
     language as proposed by the Senate.
       Amendment No. 50: Establishes guarantee loan limitation of 
     $17,400,000,000 as proposed by the Senate, instead of 
     $15,000,000,000 as proposed by the House.
       Amendment No. 51: Inserts language proposed by the Senate 
     to authorize the sale of up to $4,000,000,000 of assigned 
     notes under the FHA-GI/SRI program account. Under a separate 
     proviso stricken by the Senate, the House had proposed the 
     sale of $2,400,000,000 of such notes. Also inserts language 
     proposed by the Senate to allow the use of any negative 
     credit subsidy from such sales to offset new FHA-GI/SRI 
     guarantee activity. A separate House provision stricken by 
     the Senate contained similar language on the reuse of 
     negative credit subsidies.
       Amendment No. 52: Inserts language proposed by the Senate 
     to allow funds previously appropriated to remain available 

[[Page H 14127]]
     until expended if such funds have not been obligated. The House 
     language stricken by the Senate extended the availability of 
     such funds if they had not been previously made available for 
     obligation.
       Amendment No. 53: Deletes language proposed by the House 
     and stricken by the Senate to reuse negative credit subsidies 
     from the sale of FHA-MI/SRI assigned notes for new loan 
     guarantee credit subsidies under the same account. Also 
     deletes House language establishing a cap of $2,600,000,000 
     on the amount of such sales, a limitation on the availability 
     of $52,000,000 of excess proceeds from such sales, and an 
     appropriation of $69,620,000 for credit subsidies.
       Amendment No. 54: Appropriates $202,470,000 for 
     administrative expenses of the guaranteed and direct loan 
     programs of the FHA-GI/SRI program account as proposed by the 
     Senate, instead of $197,470,000 as proposed by the House.
       Amendment No. 55: Authorizes the transfer of $198,299,000 
     for departmental salaries and expenses from the FHA-GI/SRI 
     program account as proposed by the Senate, instead of 
     $197,455,000 as proposed by the House.
       Amendment No. 56: Appropriates $9,101,000 for 
     administrative expenses of the Government National Mortgage 
     Association (GNMA) guaranteed mortgage-backed securities 
     program as proposed by the Senate, instead of $8,824,000 as 
     proposed by the House.
       Amendment No. 57: Authorizes the transfer of $9,101,000 for 
     departmental salaries and expenses from the GNMA mortgage-
     backed securities guaranteed loan receipt account as proposed 
     by the Senate, instead of $8,824,000 as proposed by the 
     House.


                       Administrative Provisions

       Amendment No. 58: Inserts administrative provisions agreed 
     to by the conferees. These provisions, identified by section 
     number, are as follows:
       Sec. 201. Extend Administrative Provisions from the 
     Rescission Act. Inserts language proposed by the Senate to 
     modify and extend the applicability of language affecting the 
     public housing modernization program and the public housing 
     one-for-one replacement requirement first enacted in Public 
     Law 104-19. The House proposed similar language to suspend 
     the one-for-one replacement requirement for fiscal year 1996.
       Sec. 202. Public and Assisted Housing Rents, Income 
     Adjustments, and Preferences. (a) Minimum Rent. Inserts 
     language to establish minimum rents at $25 per month per 
     household and up to $50 per month at the discretion of the 
     public housing authority (PHA). (b) Ceiling Rents. Also 
     establishes a second calculation of ceiling rents that 
     reflect reasonable market value of the housing but are not 
     less than the monthly operating costs and, at the discretion 
     of the PHA, contribution to a replacement reserve. (c) 
     Definition of Adjusted Income. Allows PHAs to adopt separate 
     income adjustments from those currently established under the 
     Housing Act of 1937. However, the Secretary shall not take 
     into account any reduction of the per unit dwelling rental 
     income when calculating federal subsidies under the public 
     housing operating subsidies program. (d) Preferences. 
     Suspends federal preferences for the public and assisted 
     housing programs. (e) Applicability. Extends the 
     applicability of subsections (a), (b), (c), and (d) to Indian 
     housing programs. (f) Limits the application of this section 
     to fiscal year 1996 only.
       Sec. 203. Conversion of Certain Public Housing to Vouchers. 
     Establishes criteria for identifying public housing to be 
     converted to voucher assistance, rules for implementation and 
     enforcement, and a process for removing units from the public 
     housing inventory and converting federal assistance to 
     vouchers. Section 18 of the Housing Act of 1937 shall not 
     apply to the demolition of developments under this section.
       Sec. 204. Streamlining Section 8 Tenant-Based Assistance. 
     (a) Suspends for fiscal year 1996 the ``take one, take all'' 
     requirement, section 8(t) of the Housing Act of 1937. (b) 
     Suspends for fiscal year 1996 certain notice requirements for 
     owners participating in the certificate and voucher programs. 
     (c) In addition, this provision suspends for fiscal year 1996 
     the ``endless lease'' requirement under section 8(d)(1)(B).
       Sec. 205. Section 8 Fair Market Rentals, Administrative 
     Fees, and Delay in Reissuance. (a) Establishes fair market 
     rentals at the 40th percentile of modest cost existing 
     housing instead of the current 45th percentile calculation. 
     (b) Modifies provision to freeze administrative fees for 
     tenant-based assistance administered by a public housing 
     agency. (c) Delays the reissuance of section 8 vouchers and 
     certificates by three months. The Administration originally 
     proposed similar proposals in its fiscal year 1996 budget. 
     Both the House and Senate are in agreement on these new 
     policy directions.
       Sec. 206. Public Housing/Section 8 Moving to Work 
     Demonstration. Establishes a demonstration of no more than 30 
     public housing authorities to reduce cost and achieve greater 
     cost-effectiveness in federal expenditures, to provide 
     incentives for heads of households to become economically 
     self-sufficient, and to increase housing choices for lower-
     income families. The demonstration may include no more than 
     25,000 public housing units.
       Sec. 207. Repeal of Provisions Regarding Income Disregards. 
     Repeals section 957 of the Cranston-Gonzalez National 
     Affordable Housing Act and section 923 of the Housing and 
     Community Development Act of 1992.
       Sec. 208. Extension of Multifamily Housing Finance 
     Programs. Extends sections 542(b)(5) and 542(c)(4) as 
     proposed by the House and Senate.
       Sec. 209. Foreclosure of HUD-held Mortgages Through Third 
     Parties. During fiscal year 1996, allows the Secretary to 
     delegate some or all of the functions and responsibilities in 
     connection with the foreclosure of mortgages held by HUD 
     under the National Housing Act.
       Sec. 210. Restructuring of the HUD Multifamily Mortgage 
     Portfolio Through State Housing Finance Agencies. During 
     fiscal year 1996, allows the Secretary to sell or transfer 
     multifamily mortgages held by the Secretary under the 
     National Housing Act to a State housing finance agency.
       Sec. 211. Transfer of Section 8 Authority. Allows the 
     Secretary to use section 8 budget authority that becomes 
     available because of the termination of a project-based 
     assistance contract to provide continued assistance to 
     eligible families. Section 8 renewal assistance may be used 
     for the same purpose at the time of contract expiration.
       Sec. 212. Documentation of Multifamily Refinancings. 
     Extends through fiscal year 1996 and thereafter, the 
     amendments to section 223(a)(7) of the National Housing Act 
     included in Public Law 103-327.
       Sec. 213. FHA Multifamily Demonstration. Establishes a 
     demonstration to review the feasibility and desirability of 
     ``marking-to-market'' the debt service and operating expenses 
     attributable to HUD multifamily projects which can be 
     supported with or without mortgage insurance under the 
     National Housing Act and with or without above-market rents 
     utilizing project-based or tenant-based assistance. Such 
     demonstration is limited to 15,000 units over fiscal years 
     1996 and 1997. The provision also appropriates $30,000,000 as 
     a credit subsidy for such activities.
       Sec. 214. Section 8 Contract Renewals. Inserts language to 
     limit the cost of section 8 contract renewals to the fair 
     market rent (FMR) for the area, similar to language proposed 
     by the House. In addition, language is added to make clear 
     that the Secretary shall, at the request of the owner, renew 
     expiring section 8 contracts for one year under the same 
     terms and conditions as the expiring contract during fiscal 
     year 1996. On October 1, 1996, additional expiring contracts 
     will be subject to the local FMR. This language clarifies 
     existing law with respect to renewal of these project-based 
     subsidy contracts, and highlights the urgency of affirmative 
     action by the authorizing committees in enacting legislation 
     necessary to avoid loss of affordable housing and potential 
     displacement of residents next fiscal year.
       This section also amends the provisions of law requiring 
     renewal of loan management setaside contracts to provide the 
     Secretary the discretion to renew only that portion of 
     expiring contracts necessary to avoid displacement of 
     residents who have been previously assisted. Budgetary 
     constraints will make continuing these rental subsidy 
     contracts very difficult over the next several years and it 
     is highly advisable that project owners reduce dependence on 
     such project-based subsidies as such assisted residents 
     voluntarily leave these developments.
       Finally, this section amends the rental payment standards 
     applicable to housing projects under section 236 of the 
     National Housing Act to encourage the retention of working 
     families in these developments by preventing rental charges 
     in these projects which may exceed actual market rates in 
     certain localities.
       Sec. 215. Extension of Home Equity Conversion Mortgage 
     Program. Extends demonstration through fiscal year 1996, 
     increasing the maximum number of units insured from 25,000 to 
     30,000.
       Sec. 216. Assessment Collection Dates for Office of Federal 
     Housing Enterprise Oversight (OFHEO). Modifies OFHEO 
     assessment collection dates to allow revenues to match the 
     timing of expenditures.
       Sec. 217. Merger Language for Assistance for the Renewal of 
     Expiring Section 8 Subsidy Contracts and Annual Contributions 
     for Assisted Housing. Merges the section 8 renewal account 
     with annual contributions for assisted housing, as proposed 
     by the House. This will allow a more accurate assessment of 
     the ongoing commitment to affordable housing by the 104th 
     Congress. More than 400,000 families will be assisted with 
     funds provided under the Annual Contributions for Assisted 
     Housing account in fiscal year 1996. Altogether, 4.5 million 
     households will receive HUD assistance in fiscal year 1996.
       Sec. 218. Debt Forgiveness. Inserts language to forgive 
     public facilities loans in Hubbard and Groveton, Texas and 
     Hepzibah, West Virginia. These loans were previously written 
     off as uncollectible and will not increase the federal debt. 
     In addition, the conferees direct the Department of Housing 
     and Urban Development to work with the Rend Lake Conservacy 
     District, Illinois, to resolve its indebtedness under the 
     Public Facilities Loan program.
       Sec. 219. Clarifications. Inserts language to clarify 
     ``continuum of care'' requirements as applied to the Paul 
     Mirabile Center in San Diego, California.
       Sec. 220. Employment Limitations. Limits the number of 
     Assistant Secretaries at the Department to 7, the number of 
     schedule C employees to 77, and the number of non-career 
     Senior Executive Service positions to 20. Such limitations 
     are to be met by the end of fiscal year 1996.
       Sec. 221. Use of Funds. Allows previously appropriated 
     funds for Highland, California, and Toledo, Ohio, to be used 
     in their respective communities for other purposes.
     
[[Page H 14128]]

       Sec. 222. Lead-based Paint Abatement. Amends eligible 
     housing criteria under section 1011 of the Residential Lead-
     Based Paint Hazard Reduction Act of 1992.
       Sec. 223. Extension Period for Sharing Utility Cost Savings 
     with PHAs. Eliminates time restriction for sharing utility 
     cost savings under section 9(a)(3)(B)(i) of the Housing Act 
     of 1937.
       Sec. 223A. Mortgage Note Sales. Extends for fiscal year 
     1996 mortgage sales under section 221(g)(4)(C)(viii) of the 
     National Housing Act.
       Sec. 223B. Repeal of Frost-Leland. This provision repeals 
     section 415 of the VA, HUD, and Independent Agencies 
     Appropriations Act for fiscal year 1988. The Dallas Housing 
     Authority and the Housing Authority of the City of Houston 
     may proceed with demolitions and revitalization of George 
     Loving Place and Allen Parkway Village, respectively. In 
     addition, the conferees have learned that the demolition of 
     Allen Parkway Village, a large densely organized public 
     housing project in Houston, Texas, which has been 
     substantially vacant for over a decade, is being delayed by 
     the section 106 process under the National Historic 
     Preservation Act of 1966. The conferees believe that 
     preservation of historic buildings is an admirable goal. 
     However, the conferees do not believe that it is good policy 
     to require the preservation of buildings unsuitable for 
     modern family life at the expense of low income families in 
     dire need of safe, decent, and affordable housing.
       Sec. 223C. FHA Single-Family Assignment Program Reform. 
     Reforms the assignment process of the Federal Housing 
     Administration to reflect cost-savings achieved in the 
     private sector for working out delinquent loans to avoid 
     foreclosure and minimizing losses to the mortgage insurer.
       Sec. 223D. Spending Limitations. (i) Property Insurance. 
     The Department is in the process of promulgating regulations 
     under the Fair Housing Act regarding discriminatory practices 
     in property insurance activities. Certain courts have ruled 
     upholding the application of the Fair Housing Act to property 
     insurance. However, significant questions have been raised 
     relative to HUD's jurisdiction in this regard, especially in 
     light of the McCarran-Ferguson Act, which reserves to the 
     States authority to regulate insurance matters, and the Fair 
     Housing Act, which makes no mention of discriminating in 
     providing property insurance.
       Given the uncertainty and controversy over this issue, it 
     is the consensus that this important issue should be promptly 
     addressed by the legislative committees of jurisdiction.
       (2) Prohibition on Penalties or Sanctions Against 
     Communities That Adopt English as the Official Language. The 
     conferees are concerned that communities across the United 
     States feel it necessary to adopt State or local law or 
     regulations to declare English the official language. While 
     English ought to be an essential part of the American 
     experience, the conferees do not oppose bilingual education 
     and recognize the importance of such education efforts in 
     order to meet the needs of an increasing population of 
     immigrants and others, who in too many cases, are 
     economically disadvantaged. The real need for Americans is to 
     communicate fully with one another. To the extent English is 
     chosen in individual communities as the main language, HUD 
     ought not to punish or impose sanctions because of this 
     action.
       (3) Lobbying Prohibition. Prohibits funds provided under 
     this Act from being used for purposes not authorized by the 
     Congress.
       (4) RESPA. The conference agreement does not include 
     language prohibiting the expenditure of funds to promulgate 
     regulations based upon the July 21, 1994 proposed rule on the 
     Real Estate Settlement Procedures Act (RESPA). However, the 
     conferees are concerned that HUD has been interpreting RESPA 
     in a manner that may stifle competition and the development 
     of innovative services in the settlement services industry. 
     Before proceeding to finalize such rulemaking, the conferees 
     urge the Department to seek additional guidance on this 
     important issue from the appropriate authorizing committees.
       (5) Land Use Regulations for Residential Care. Communities 
     across the country have expressed serious concerns with fair 
     housing law as it relates to their ability to review and 
     implement and use regulations for residential care 
     facilities. The conferees encourage the Department to work 
     with the relevant authorizing committees to develop 
     legislative remedies for these concerns as soon as possible.
       Sec. 223E. Transfer of Functions to the Department of 
     Justice. Language is inserted to transfer fair housing 
     activities to the Department of Justice effective April 1, 
     1997. A similar provision was proposed by the Senate in 
     amendment numbered 116. This transfer would include all 
     responsibilities for fair housing issues, including 
     administering the Fair Housing Assistance Program (FHAP) and 
     the Fair Housing Initiatives Program (FHIP). This 18-month 
     transition would give the Department of Justice adequate time 
     to ensure a smooth transfer of all functions. Congress would 
     also have an opportunity to review key implementation issues.
       The conferees emphasize that the intent of this provision 
     is not to minimize the importance of addressing housing 
     discrimination in this nation; instead, the Department of 
     Justice with its own significant (and primary) 
     responsibilities to address all forms of discrimination 
     represents the appropriate place to consolidate and to 
     provide consistency in policy direction for the federal 
     government to combat discrimination, including discrimination 
     with regard to housing issues.
       While many members of Congress are advocating the 
     elimination of HUD, the transfer of HUD's fair housing 
     programs to the Department of Justice will allow HUD to 
     refocus on its primary responsibilities of providing housing 
     and community development assistance. The larger issue of 
     determining the fate of HUD is better suited for the 
     authorizing committees of the House and Senate.
       Amendment No. 59: Inserts language proposed by the Senate 
     to prohibit the expenditure of funds under this Act for the 
     investigation or prosecution under the Fair Housing Act of 
     any otherwise lawful activity, including the filing or 
     maintaining of non-frivolous legal action, that is engaged in 
     solely for the purposes of achieving or preventing action by 
     a Government official, entity, or court of competent 
     jurisdication.
       Amendment No. 60: Inserts language proposed by the Senate 
     to prohibit the use of funds under this Act to take 
     enforcement action under the Fair Housing Act on the basis of 
     familial status and which involves an occupancy standards 
     except under the occupancy standards established by the March 
     20, 1991 Memorandum from the General Counsel of HUD to all 
     Regional Counsel, or until such time as HUD issues a final 
     rule on occupancy standards in accordance with standard 
     rulemaking.
       Amendment No. 61: Inserts language proposed by the Senate 
     to allow reconstruction or rehabilitation costs as eligible 
     activities for the expenditure of Community Development Block 
     Grant funds, not just reconstruction and rehabilitation costs 
     in conjunction with acquisition costs.
       Amendment No. 62: Deletes language proposed by the Senate 
     requiring HUD to submit a report to Congress on the extent 
     federal funds are used to facilitate the closing or 
     substantial reduction of operations of a plant that result in 
     the relocation or expansion of a plant from one state to 
     another. Instead, conferees direct HUD to review available 
     data on this issue and report to Congress the costs and 
     benefits of establishing such a database.

                    TITLE III--INDEPENDENT AGENCIES

                   Consumer Product Safety Commission

       The conferees agree to provide $40,000,000 for the Consumer 
     Product Safety Commission, a reduction of $4,000,000 from the 
     budget request. The conferees direct the Commission to make 
     the necessary reduction in expenditures from among operating 
     expenses, including contract services, overhead accounts such 
     as space, rent, telephone and travel and by delay in filling 
     vacant positions.


             corporation for national and community service

       Amendment No. 63: Reported in technical disagreement. The 
     managers on the part of the House will offer a motion to 
     recede and concur in the amendment of the Senate to the 
     amendment of the House with an amendment as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert the following:
       For necessary expenses for the Corporation for National and 
     Community Service in carrying out the orderly termination of 
     programs, activities, and initiatives under the National and 
     Community Service Act of 1990, as amended (Public Law 103-
     82), $15,000,000; Provided, That such amount shall be 
     utilized to resolve all responsibilities and obligations in 
     connection with said Corporation and the Corporation's Office 
     of Inspector General.
       The managers on the part of the Senate will move to concur 
     in the amendment of the House to the amendment of the Senate.


                       court of veterans appeals

       The bill provides $9,000,000 for the Court of Veterans 
     Appeals. The funding levels for this agency is not in 
     conference because the recommended amount in the bill was 
     identical as it passed both the House and the Senate. Because 
     of concerns expressed with this level of funding, the 
     conferees intend that the Committees on Appropriations review 
     the benefits of the Court and how it can best operate in a 
     constrained budget environment. It may be that the 
     authorizing committees will also want to review these 
     matters.

                      Department of Defense--Civil


                       cemeterial expenses, army

       Amendment No. 64: Appropriates $11,946,000 for salaries and 
     expenses as proposed by the Senate, instead of $11,296,000 as 
     proposed by the House.

                    Environmental Protection Agency


                         science and technology

       Amendment No. 65: Appropriates $525,000,000 for science and 
     technology activities instead of $500,000,000 as proposed by 
     the Senate and $384,052,000 under research and development as 
     proposed by the House. The research and development account 
     as proposed by the House and stricken by the Senate is 
     deleted and a new science and technology account is adopted 
     in lieu thereof.
       The new science and technology account has been created to 
     begin the consolidation of all research related activities at 
     EPA, including appropriate personnel and laboratory costs. 
     The conferees note that Environmental Service Division (ESD) 
     labs have not been brought under this account at this time, 
     however, the Agency is expected to provide an analysis of 
     whether ESD labs, as well as other research related 
     activities, 

[[Page H 14129]]
     should be included in this account in the fiscal year 1997 budget.
       The conferees recognize that with the new account 
     structure, EPA has additional flexibility to manage its 
     resources. The conferees wish to make clear, however, that 
     EPA is not to apply budgetary reductions disproportionately 
     to contracts relative to the workforce. The agency must plan 
     for further budgetary reductions anticipated in the outyears 
     by gradually reducing its workforce, and the account 
     structure is intended in part to ease the difficulties and 
     disruption associated with downsizing the workforce. Any 
     reprogramming of funds that become necessary throughout the 
     fiscal year is to be made upon the notification and approval 
     of the Committees on Appropriations.
       The conferees are in agreement with the following changes 
     to the budget request:
       +$150,000,000 for research and development personnel costs 
     transferred from the former program and research operations 
     account.
       +$35,000,000 for laboratory and facilities costs 
     transferred from the former abatement, control, and 
     compliance account.
       +$500,000 for the National Urban Air Toxics Research 
     Center.
       +$2,500,000 for the Gulf Coast Hazardous Substance Research 
     Center.
       +$1,500,000 for the Water Environment Research Foundation.
       +$2,500,000 for the American Water Works Association 
     Research Foundation (AWWARF).
       +$730,000 for continued study of livestock and agricultural 
     pollution abatement.
       +$1,000,000 for continuation of the San Joaquin Valley PM-
     10 study.
       +$2,000,000 to continue research on urban waste management 
     at the University of New Orleans.
       +$1,500,000 for the Resource and Agricultural Policy 
     Systems program at Iowa State University.
       +$500,000 for oil spill remediation research at the Spill 
     Remediation Research Center.
       +$1,000,000 for research on the health effects of arsenic. 
     In conducting this research, the Agency is strongly 
     encouraged to contract with groups such as the AWWARF so that 
     funds can be leveraged to maximize available research 
     dollars.
       +$1,000,000 for the Center for Air Toxics Metals.
       +$1,000,000 for the EPSCoR program.
       +$18,000,000 for research and development transferred from 
     the hazardous substance superfund account, including 
     $5,000,000 for the hazardous substance research center 
     program. The conferees agree that most research being 
     conducted under the Superfund account has application across 
     media lines and thus should be carried forward in a manner 
     consistent with all other Agency research and development 
     activities. With this transfer, the conferees have included a 
     total of $20,500,000 for Superfund research in the new 
     science and technology account, including $2,500,000 for the 
     Gulf Coast Hazardous Substance Research Center. This 
     represents a further step in consolidating all agency 
     research within this account. Should the amount provided for 
     Superfund research be insufficient, the Committees on 
     Appropriations would entertain an appropriate reprogramming 
     request from the agency. The conferees expect EPA to conform 
     its fiscal year 1997 budget submission to this account 
     restructuring, including Superfund research.
       -$69,200,000 from the Environmental Technology Initiative. 
     Remaining funds in this program are to be used for technology 
     verification activities, and the agency is expected to submit 
     a spending plan for this activity as part of its annual 
     operating plan.
       -$31,645,700 from the Working Capital Fund included in the 
     budget request. This new fund has not been approved for 
     fiscal year 1996, however, the conferees are generally 
     receptive to the philosophy behind the adoption of such a 
     fund and expect to work closely with the agency throughout 
     the fiscal year to develop a proposal for consideration for 
     fiscal year 1997.
       -$19,545,300 as a general reduction, subject to normal 
     reprogramming guidelines
       The conferees have deleted Senate bill language contained 
     in amendment number 92 related to EPA research and 
     development activities and staffing. However, the conferees 
     agree that EPA has not provided adequate information to the 
     Congress regarding its new Science to Achieve Results (STAR) 
     initiative including its purpose; the effects it might have 
     on applied research needed to support the agency's regulatory 
     activities; the impact on current staffing, cooperative 
     agreements, grants, and support contracts; whether STAR will 
     duplicate the work of other entities such as the National 
     Science Foundation; and how STAR relates to the strategic 
     plan of the Office of Research and Development. Therefore, 
     the agency is directed to submit by January 1, 1996 a report 
     to address these issues. The report also should identify the 
     amount of funds to be spent on STAR, and a listing of any 
     resource reductions below fiscal year 1995 funding levels, by 
     laboratory, from federal staffing, cooperative agreements, 
     grants, or support contracts as a result of funding for the 
     STAR program. No funds should be obligated for the STAR 
     program until the Committees are in receipt of the report.
       The conferees direct EPA to discontinue any additional 
     hiring under the contractor conversion program in the Office 
     of Research and Development (ORD) and provide to the 
     Committees by January 1, 1996, a staffing plan for ORD 
     indicating the use of federal and contract employees.
       As part of the peer review process of research activities, 
     the conferees expect ORD to place more reliance on oversight 
     and review of its ongoing research by the Science Advisory 
     Board. The conferees agree that better use of the Board in 
     such an oversight and review role will greatly enhance the 
     credibility of the ``science'' conducted by EPA in support of 
     program activities.
       Finally, the conferees note that funds deleted by the House 
     for the Gulf of Mexico Program (GMP) have been fully 
     restored. While the conferees thus support its continuation 
     for fiscal year 1996, there nevertheless remain concerns 
     regarding the current scope, cost, and long term direction 
     the agency has planned for this program. Precious little 
     information is presented through budget justifications in 
     support of the GMP, yet it has enjoyed financial support 
     through the EPA, as well as significant contributions from 
     numerous other federal and state sources. The conferees 
     expect the agency to perform a thorough study and evaluation 
     of this program and its total expenditures, from all sources, 
     and include such information in the fiscal year 1997 budget 
     support documents.


                 environmental programs and management

       Amendment No. 66: Appropriates $1,550,300,000 for 
     environmental programs and management instead of 
     $1,670,000,000 under program administration and management as 
     proposed by the Senate and $1,881,614,000 under environmental 
     programs and compliance as proposed by the House. The 
     environmental programs and compliance account as proposed by 
     the House and stricken by the Senate is deleted and a new 
     account is adopted in lieu thereof.
       The new account combines most of what were formerly the 
     abatement, control, and compliance and program and research 
     operations accounts, thus providing the Agency with increased 
     flexibility to meet personnel and program requirements within 
     the framework of reduced financial resources. As noted under 
     the science and technology account, personnel and laboratory 
     costs associated with research activities have been reduced 
     from the budget request under the aforementioned two 
     accounts. Additionally, state categorical grants proposed in 
     the budget request under abatement, control, and compliance 
     have been moved to the new state and tribal assistance grant 
     account.
       In addition to providing flexibility across program lines, 
     the actions of the conferees in approving such structural 
     changes also are due to the necessity of the agency to make 
     substantial changes in the manner in which it carries out its 
     mission. It must be recognized that there simply are not 
     enough financial resources available to remedy every 
     environmental problem that can be identified. Rather, EPA 
     must develop serious priorities, using cost-benefit-risk 
     analysis if appropriate, so that it can go about the task of 
     accomplishing meaningful environmental goals in an orderly 
     and systematic way. To this end, the old ``command and 
     control'' approach must be discarded--in the Regions as well 
     as in headquarters--and replaced with new methods that 
     promote facilitation, compliance assistance, and federal-
     state-business partnerships coupled with financial 
     leveraging. The agency's Common Sense Initiative and Project 
     XL are excellent examples of such new methods, and the 
     conferees strongly urge the agency to be more deliberate and 
     aggressive in its move to foster these new, flexible 
     partnerships and relationships with the states and with 
     business without compromising the environmental goals set by 
     the Congress and carried out by the agency. The conferees 
     stand ready to assist the agency in its move in this new 
     direction.
       The conferees strongly support the recommendations made by 
     the National Academy of Public Administration in ``Setting 
     Priorities, Getting Results: A New Direction for EPA'' as 
     outlined in both the House and Senate committee reports 
     accompanying this bill. The conferees believe that monitoring 
     the progress in implementing NAPA's recommendations, and 
     evaluating the effectiveness of such initiatives as Project 
     XL, performance partnerships, and the Common Sense Initiative 
     to determine if these programs offer the country a 
     significant improvement over traditional regulatory 
     approaches is very important. The conferees direct EPA to 
     propose to the Committees by February 15, 1996, how to 
     evaluate these initiatives, the agency's progress in 
     implementing NAPA's recommendations, and how changes in EPA's 
     management systems and organizational structure encourage or 
     inhibit these innovations. EPA should consider as part of its 
     proposal a further involvement by NAPA or other outside 
     parties in this evaluation.
       The conferees are in agreement on the following changes to 
     the budget request:
       +$2,000,000 for the Southwest Center for Environmental 
     Research and Policy.
       +$1,600,000 for Clean Water Act sec. 104(g) wastewater 
     operator training grants.
       +$350,000 for the Long Island Sound office.
       +$1,000,000 for the Sacramento River Toxic Pollutant 
     Control program, to be cost shared.
       +$1,000,000 for continuing work on the water quality 
     management plan for the Skaneatles, Owasco, and Otisco Lake 
     watersheds.
       +$300,000 for the Cortland County, New York aquifer 
     protection plan.
       +$8,500,000 for rural water technical assistance 
     activities.
     
[[Page H 14130]]

       +$500,000 for continuation of the Small Public Water 
     Systems Technical Assistance Center at Montana State 
     University.
       +$300,000 for a feasibility study for the delivery of water 
     from the Tiber Reservoir to Rocky Boy Reservation.
       +$2,000,000 for the small grants program to communities 
     disproportionately impacted by pollution.
       +$1,000,000 for community/university partnership grants.
       +$300,000 for the National Environmental Justice Advisory 
     Council.
       +$1,000,000 for ongoing Earthvision educational programs.
       +$500,000 for ongoing programs of the Canaan Valley 
     Institute.
       +$900,000 for remediation of former and abandoned lead and 
     zinc mining in Missouri.
       +$250,000 for an evaluation of groundwater quality in 
     Missouri where evidence exists of contamination associated 
     with anthropological activities.
       +$75,000 for the Rocky Mountain Regional Water Center's 
     model watershed planning effort.
       +$150,000 for the National Groundwater Foundation to 
     continue ongoing programs.
       +$500,000 to continue the methane energy and agricultural 
     development demonstration project.
       +$185,000 for the Columbia River Gorge Commission for 
     monitoring activities.
       +$1,000,000 for environmental review and basin planning for 
     a sewer separation demonstration project for Tanner Creek.
       +$300,000 to continue the Small Business Pollution 
     Prevention Center managed by the Iowa Waste Reduction Center.
       +$1,500,000 for the final year of the Alternative Fuels 
     Vehicle Training program.
       +$2,000,000 for the Adirondack Destruction program to 
     assess the effects of acid deposition.
       +$750,000 for the Lake Pontchartrain management conference.
       +$750,000 to continue the solar aquatic waste water 
     demonstration program in Vermont.
       +$1,000,000 to continue the onsite waste water treatment 
     demonstration through the small flows clearinghouse.
       +$235,000 for a model program in the Cheney Reservoir to 
     assess water quality improvement practices related to 
     agricultural runoff.
       +$500,000 to continue the coordinated model tribal water 
     quality initiative in Washington State.
       +$250,000 for the Ala Wai Canal watershed improvement 
     project.
       +$200,000 for the Sokaogon Cheppewa Community to continue 
     to assess the environmental impacts of a proposed sulfide 
     mine project.
       +$2,000,000 for a demonstration program to remediate 
     leaking above ground storage tanks in Alaska.
       +$1,000,000 for the National Environmental Training Center 
     for Small Communities.
       +$500,000 for the Lake Champlain basin plan available for 
     Vermont and New York.
       +$31,645,700 for the Working Capital Fund transferred from 
     the former research and development account. This fund has 
     not been approved.
       -$11,900,000 from low priority activities in the Office of 
     Air and Radiation, except that no funds are to be reduced 
     from the budget request for the WIPP compliance criteria or 
     from the program activities associated with work at Yucca 
     Mountain, Nevada.
       -$2,600,000 from the Environmental Justice program, 
     including the Partners in Protection Program.
       -$47,000,000 from the Environmental Technology Initiative.
       -$55,000,000 from Climate Change Action Plan programs. The 
     conferees note that over $80,000,000 remains available for 
     this program, an amount double that provided in fiscal year 
     1994. The agency is directed to terminate funding for 
     programs which compete directly or indirectly with commercial 
     business, including the Energy Star Homes Program.
       -$12,000,000 from the Montreal Protocol Facilitation Fund.
       -$405,000 from the Building Air Quality Alliance.
       -$48,000,000 from low priority enforcement activities.
       -$1,800,000 from low priority environmental education 
     activities. The conferees urge the agency to ensure that 
     other resources will be provided for the third and final year 
     to carry out the environmental education grants program to 
     minority institutions. In addition, the conferees expect the 
     National Environmental and Training Foundation will be funded 
     at the fiscal year 1995 level.
       -$3,000,000 from low priority activities in the Office of 
     International Activities.
       -$350,000 from activities related to unauthorized research 
     related to electromagnetic fields.
       -$2,000,000 from the national service initiative.
       -$1,000,000 from the GLOBE program.
       -$25,000,000 from regional and state oversight activities.
       -$81,474,300 from program office laboratory costs requested 
     under the former abatement, control, and compliance and 
     program and research operations accounts. As noted in the 
     science and technology account, funds have been made 
     available to continue funding these facilities under the new 
     account structure agreed to by the conferees.
       -$140,080,200 from Office of Research and Development 
     personnel costs requested under the former program and 
     research operations account. As noted in the science and 
     technology account, funds have been made available to meet 
     personnel requirements under the new account structure agreed 
     to by the conferees.
       -$683,466,200 from state and tribal categorical grants 
     which have been transferred by the conferees from the former 
     abatement, control, and compliance account to the new state 
     and tribal assistance grants account.
       -$166,786,000 as an undistributed general reduction 
     throughout this restructured account, subject to the modified 
     reprogramming procedures.
       No legislative provisions as proposed by the House and 
     stricken by the Senate have been included in this new 
     account.
       To provide the EPA with enhanced spending flexibility, the 
     conferees have included language in the bill which makes 
     funds available for expenditure for two years until September 
     30, 1997, and have agreed on reprogramming procedures for 
     this account only, which permit reprogrammings below $500,000 
     without notice to the Committees, reprogrammings between 
     $500,000 and $1,000,000 with notice to the Committees, and 
     reprogrammings over $1,000,000 with approval of the 
     Committees.
       The conferees agree on the importance of the Environmental 
     Finance Centers and expect that they be adequately supported. 
     Similarly, the conferees direct that a grant for Sarasota 
     County, Florida be provided from within funding for the 
     National Estuary Program to support the implementation of the 
     Sarasota Bay NEP Conservation and Management Plan. Finally, 
     the conferees note that the Chesapeake Bay Program has been 
     fully funded and expect that appropriate resources will be 
     devoted to oyster reef construction in the Chesapeake.
       The conferees urge EPA to work in a cooperative manner with 
     the Commonwealth of Virginia to resolve issues concerning the 
     state's proposed state implementation plan relative to title 
     V of the Clean Air Act, and to receive the court's guidance 
     before implementing section 502(b)(6) of the Act.
       The conferees are in agreement that EPA should consider 
     holding in abeyance the development of a proposed rule 
     concerning a Sole Source Aquifer Designation for the Eastern 
     Columbia Plateau Aquifer System in eastern Washington State, 
     until all issues raised by the State are fully explored and 
     resolved in a manner which meets the needs of all parties.
       The conferees also remain concerned about reports filed 
     earlier this year in Milwaukee, Wisconsin and other locations 
     regarding illness alleged to be caused by the use of 
     reformulated gasoline (RFG). While the conferees note that 
     the scientific community has yet to make a direct link 
     between such illness and the use of RFG, the conferees 
     nevertheless expect the agency to continue its review of all 
     available literature and data developed in response to this 
     situation--including such information that may be developed 
     during the winter of 1995-1996--and provide a determination 
     of what additional studies or actions may be necessary to 
     adequately monitor and address the situation.
       The conferees are concerned about the interim policy 
     statement on voluntary environmental self policing and self 
     disclosure by the agency. The conferees believe that these 
     state initiatives may prove to be valuable tools to increase 
     compliance with environmental laws in their states. 
     Therefore, the conferees urge EPA to work with the 
     appropriate Committees of Congress to develop an appropriate 
     policy concerning state environmental audit or self 
     evaluation privilege or immunity laws.
       As expressed in both House and Senate Committee reports 
     accompanying H.R. 2099, there continues to be concern with 
     EPA's proposed ``cluster rule'' for pulp and paper. The 
     conferees urge EPA to appropriately address pollutants 
     emitted at only de minimus levels, such as metals from 
     pulping combustion sources, by using its existing authority 
     to establish a de minimus exemption for such pollutants, or 
     by establishing an emission threshold or level of 
     applicability which would achieve a similar result.
       Similarly, the conferees remain concerned about the 
     direction taken by the agency with regard to the promulgation 
     of a rule under TSCA to ban or regulate the use of acrylamide 
     and n-methylolacrylamide (NMA) grouts. Such grouts are an 
     important tool in the repair of sewer systems, and the loss 
     of this tool would substantially impair the ability of 
     municipalities to effect repairs of sewer systems without 
     major and costly construction. The conferees strongly urge 
     the agency to review its risk assessment and cost-benefit 
     analysis and provide the appropriate committees of the 
     Congress with all relevant updated information developed 
     through this review, prior to moving forward in this matter.
       The conferees agree that concerns raised by the House 
     regarding the joint EPA/DOE Life Cycle Assessment program 
     have been addressed adequately by the agency. Provided that 
     the agency continues to coordinate the scope, application, 
     and direction of the program with the private sector, the 
     conferees do not object to the use of appropriations in the 
     furtherance of this program.
       The conferees are concerned with EPA's plans to expand the 
     Toxics Release Inventory (TRI) to include toxics use data, 
     despite the lack of specific authorization under the 
     Emergency Planning and Community Right-to-Know Act. The 
     conferees note that while 

[[Page H 14131]]
     the legislation establishing the TRI (42 U.S.C. 11023) directs EPA to 
     publish a uniform toxics chemical release form providing for 
     the submission of data on ``the general category or category 
     of use'' of a chemical, and the Pollution Prevention Act (42 
     U.S.C. 13101-13109) expanded the TRI by requiring that 
     facilities filing such a release form include a source 
     reduction and recycling report, Congress has not granted EPA 
     the specific authority to expand the TRI to require the 
     reporting of any mass balance, materials accounting, or other 
     data on amounts of chemicals used by a reporting facility. 
     The conferees urge EPA not to take final action to create a 
     Toxics use Inventory until it seeks specific legislative 
     authority to do so.
       The conferees have agreed to delete a provision proposed by 
     the House which prohibited the expenditure of funds to impose 
     or enforce proposed rules under section 112(r) of the Clean 
     Air Act and instead note their pleasure that EPA is 
     considering amendments to the risk management plan list rule 
     which address some of the concerns underlying the House 
     amendment. The conferees remain concerned, however, that the 
     status of natural gas processors may not be adequately 
     addressed in these amendments. Arguments advanced to exempt 
     exploration and production facilities from section 112(r) are 
     equally applicable in the case of natural gas processing 
     facilities, which are also remotely-located, uncomplicated, 
     and often unmanned. Therefore, the conferees urge EPA to 
     consider extending any clarification regarding exploration 
     and production facilities to natural gas processors.
       The conferees have also deleted language proposed by the 
     House regarding the recently published maximum achievable 
     control technology (MACT) rule for the petroleum refining 
     industry. At both the House and Senate fiscal year 1996 
     budget hearings for the agency, held this spring, 
     considerable testimony was taken on the issue of this 
     refinery MACT. Although all parties agree that portions of 
     this rule are acceptable and workable, testimony received at 
     these hearings indicated that the agency drafted much of the 
     rule relying on data that was as much as 15 years old, even 
     when agency-acceptable three year old data was available. As 
     the testimony itself revealed, drafting of MACT rules in this 
     manner may not be consistent with the intent of the Congress 
     in the passage of the Clean Air Act. In this regard, the 
     conferees urge the agency to consider proposing appropriate 
     amendments, using the latest data, to this rule so that the 
     strongest, and fairest, MACT rule can be instituted.
       Similarly, based on testimony received during the fiscal 
     year 1996 budget hearings, the House had included bill 
     language prohibiting the expenditure of funds to proceed with 
     the so-called ``combustion strategy'' unless the agency 
     followed its own regulatory guidelines. While the conferees 
     have deleted this language they nevertheless remain concerned 
     with the expenditure of funds by any agency in pursuit of a 
     rulemaking which is in conflict with their own rules and 
     procedures. In this instance, EPA has stated publicly that 
     its use of applicable statutory authority must be accompanied 
     by site-specific findings of risk in the administrative 
     record supporting a permit and that any conditions are 
     necessary to ensure protection of human health and the 
     environment (56 Federal Register 7145). The conferees 
     strongly urge the agency to fully comply with its own 
     regulations in any invocation of omnibus permitting 
     authority, and, in furtherance of their hearing records in 
     this matter, direct EPA to report to the House and Senate 
     Appropriations Committees as to how the agency intends to 
     implement these requirements in connection with its 
     ``Combustion Strategy.'' In this regard, it should be noted 
     that the National Academy of Sciences is conducing currently 
     a study on the health effects of waste combustion scheduled 
     for completion in September 1996. To ensure that policies are 
     based on the best up-to-date science and to incorporate 
     appropriate Academy findings, the conferees believe the 
     sensible approach would be to await the results of the study 
     before finalizing a rule addressing the combustion of 
     hazardous waste.
       Given the importance of maintaining an adequate and 
     wholesome food supply to ensure good public health, the 
     Office of Pesticide Programs (OPP) is encouraged to take 
     steps to retain the same level of funding and FTEs as has 
     been provided in fiscal year 1995.
       It is the intention of the conferees that the EPA avoid 
     unnecessary or redundant regulation and minimize burdens on 
     beneficial research and development of genetically engineered 
     plants. The conferees note that both the National Research 
     Council of the National Academy of Sciences and the World 
     Health Organization have concluded that the application of 
     recombinant DNA technology does not pose any unique risk to 
     food safety or the environment. While the conferees 
     acknowledge the basic regulatory requirements set forth under 
     the Federal Insecticide, Fungicide and Rodenticide Act, the 
     agency is urged to minimize the regulatory burden on the 
     developers of products of such technology. Moreover, the 
     agency should adopt risk based regulations or exemptions from 
     regulations for small scale field testing of genetically 
     engineered plants that are not dissimilar from those 
     regulations set forth for the testing of other pesticides. 
     The conferees expect EPA to report to the appropriate 
     committees of the Congress by May 1, 1996 on any regulatory 
     or trade burdens imposed by the agency through registration 
     under the Federal Insecticide, Fungicide and Rodenticide Act 
     on developers of genetically modified plants (including such 
     burdens as have been identified by academic scientists 
     performing research in the field, companies using 
     biotechnology techniques, and others), as well as the 
     agency's actions to reduce those burdens to levels 
     commensurate with the risks.
       Language with regard to an exemption from section 307(b) of 
     the Federal Water Pollution Control Act, as amended, for the 
     Kalamazoo Water Reclamation Plant, has been included. The 
     conferees slightly modified the language as proposed by the 
     Senate to require that treatment and pollution removal is 
     equivalent to or better than that which would be required 
     through a combination of pretreatment by an industrial 
     discharger and treatment by the Kalamazoo Water Reclamation 
     Plant in the absence of the exemption.
       The conferees expect the agency to promptly implement its 
     partial response to a Citizen Petition filed September 11, 
     1992 regarding pesticide regulatory policies. Further, the 
     conferees expect the agency promptly to complete its response 
     to that Petition and another Citizen Petition filed July 10, 
     1995 in such a way as to minimize the unnecessary loss of 
     pesticides that pose no more than a negligible risk to health 
     or the environment.
       Further, based on the possible risk to public health, EPA 
     is strongly urged not to take action on the tolerance for 
     ethylene oxide without first referring the results of the 
     Ethylene Oxide Scientific Review Panel to the EPA Scientific 
     Advisory Board. EPA shall then report to the Committees on 
     the SAB's report and EPA's evaluation of that report.
       Amendment No. 67: Deletes language proposed by the Senate 
     making a technical change.
       Amendment No. 68: Appropriates $28,500,000 for the Office 
     of Inspector General instead of $28,542,000 as proposed by 
     the House and $27,700,000 as proposed by the Senate. The 
     conferees agree that the program level for the OIG will be 
     $40,000,000, which includes transfers of $500,000 from the 
     LUST trust fund and $11,000,000 from the hazardous substance 
     superfund account.
       Amendment No. 69: Appropriates $60,000,000 for buildings 
     and facilities as proposed by the Senate instead of 
     $28,820,000 as proposed by the House. Up to $33,000,000 of 
     the amount made available is for completion of the Ft. Meade, 
     Maryland/Region III lab facility. Remaining funds are for 
     facility repair, maintenance and improvements, and for 
     renovation of the new headquarters facility.
       The conferees note that the lack of financial resources 
     made it impossible to fund the first phase of new 
     construction at Research Triangle Park. Nevertheless, the 
     conferees acknowledge the demonstrated need for new or 
     updated facilities consistent with the mission conducted at 
     this important research facility. Prior to the submission of 
     the fiscal year 1997 budget request, the agency is directed 
     to provide a report to the Committees on Appropriations which 
     includes realistic, cost-effective alternatives in addition 
     to construction of a new facility.


                     hazardous substance superfund

       Amendment No. 70: Deletes language proposed by the House 
     and stricken by the Senate which provides that all 
     appropriations for the hazardous substance superfund be 
     derived from general revenues, and inserts language proposed 
     by the Senate in lieu thereof which provides that a specific 
     portion of the appropriation for the hazardous substance 
     superfund be derived from the superfund trust fund as 
     authorized by section 517(a) of the Superfund Amendments and 
     Reauthorization Act of 1986, as amended by P.L. 101-508, and 
     the remainder be derived from general revenues as authorized 
     by section 517(b) of the Superfund Amendments and 
     Reauthorization Act of 1986, as amended by P.L. 101-508. For 
     the hazardous substance superfund, $913,400,000 shall be 
     derived from the trust fund, instead of $753,400,000 as 
     proposed by the Senate, and $250,000,000 shall be derived 
     from general revenues, as proposed by the Senate.
       In addition, language is inserted providing a total of 
     $1,163,400,000 for Superfund.
       Amendment No. 71: Provides $11,000,000 for transfer to the 
     Office of Inspector General instead of $5,000,000 as proposed 
     by the House and $11,700,000 as proposed by the Senate.
       Amendment No. 72: Provides $59,000,000 for the Agency for 
     Toxic Substances and Disease Registry instead of $62,000,000 
     as proposed by the House and $55,000,000 as proposed by the 
     Senate.
       Amendment No. 73: Deletes language proposed by the House 
     and stricken by the Senate which makes no funds appropriated 
     under this account available for expenditure after December 
     31, 1995 unless the Comprehensive Environmental Response, 
     Compensation and Liability Act of 1980 is reauthorized.
       Amendment No. 74: Inserts language proposed by the Senate, 
     with a modification, which prohibits the expenditure of funds 
     for the proposing for listing or the listing of sites on the 
     National Priorities List (NPL) established by section 105 of 
     CERCLA, as amended, unless the Administrator of the EPA 
     receives a written request to place the site on the NPL from 
     the governor of the state in which the site is located, 
     unless CERCLA, as amended, is reauthorized. The 

[[Page H 14132]]
     conferees note that this provision is consistent with the reduction in 
     spending for Superfund pending reauthorization. Also, it 
     reflects Congressional efforts to turn more responsibility 
     for Superfund over to the States.
       Amendment No. 75: Deletes language proposed by the Senate 
     directing the funding of the Brownfields Economic 
     Redevelopment Initiative at a level sufficient to complete 
     the award of 50 cumulative Brownfields Pilots by the end of 
     fiscal year 1996 and to carry out other elements of the 
     Brownfields Action Agenda. The conferees are in agreement as 
     to the importance of the Brownfields programs and direct the 
     agency to provide financial assistance to local communities 
     to expedite the assessment of Brownfields sites in order to 
     ensure early remediation of these properties in conjunction 
     with local economic development goals. The Brownfields 
     initiative is to be funded at no less than the current level.
       For the hazardous substance superfund program, the 
     conferees have provided $1,163,400,000, and direct that the 
     agency prioritize resources, to the greatest extent possible, 
     on NPL sites posing the greatest risk. The conferees note 
     that, based on figures supplied by EPA, this appropriation is 
     more than sufficient to continue all scheduled work 
     (including the completion of one work phase and the movement 
     to the next) on all sites currently on the NPL, as well as 
     deal adequately and appropriately with all emergency response 
     needs. While the authorizing committees proceed with the 
     reauthorization and reform of the Superfund program, 
     something that literally all stakeholders endorse, the 
     conferees felt it was inappropriate to place new sites on the 
     NPL. However, EPA is directed to move forward with real 
     clean-up actions in an improved, aggressive manner while 
     minimizing overhead, personnel and other administrative 
     costs. Additionally, the agency is directed to submit a 
     detailed report to the Committees on Appropriations, prior to 
     their respective fiscal year 1997 budget hearings, on the 
     demonstrated improvements, if any, on reducing such overhead, 
     personnel and other administrative costs.
       Included in the appropriated level are the following 
     amounts:
       $800,379,000 for hazardous substance superfund response 
     actions.
       $125,076,000 for management and support, including 
     $11,000,000 transferred to the Office of Inspector General 
     and $3,076,000 for the Office of Air and Radiation.
       $127,000,000 for enforcement.
       $140,945,000 for interagency activities including 
     $59,000,000 for ATSDR; $48,500,000 for NIEHS, of which 
     $32,000,000 is for research and $16,500,000 is for worker 
     training; $25,000,000 for the Department of Justice; 
     $4,350,000 for the U.S. Coast Guard; $2,000,000 for NOAA; 
     $1,100,000 for FEMA; $680,000 for the Department of the 
     Interior; and $315,000 for OSHA.
       The conferees have also agreed to an undistributed 
     reduction of $30,000,000 from administrative costs and to a 
     limit on administrative expenses of $275,000,000, subject to 
     normal reprogramming procedures.
       The conferees fully support the continuation of the ATSDR 
     minority health professions cooperative agreement at the 
     $4,000,000 funding level, as well as the continuation of 
     adequate funding for the ATSDR health effects study on the 
     consumption of Great Lakes fish. Similarly, the conferees 
     note continued support for the Mine Waste Technology Program 
     from within available funds at an FY 1996 level of 
     $3,000,000.
       As noted earlier, the authorizing committees are currently 
     undertaking the reauthorization and reform of the Superfund 
     program. While the conferees acknowledge that honest 
     disagreements exist as to the shape such reform should take, 
     there nevertheless are many things the agency can and should 
     be doing now within the context of reform that amount to 
     nothing more than good government.
       One such area of concern to the conferees is that of proper 
     notification by the agency of persons of potential liability 
     for facilities on the NPL. Potentially responsible parties 
     (PRPs) have a reasonable expectation to be notified by the 
     EPA in a timely manner and within a time frame that permits 
     participation in remedy selection and execution. In 
     particular, it is inequitable and unconscionable for the 
     agency to identify a PRP without the means to effectively 
     participate in remedy selections and execution and then, 
     after the remedy has been substantially completed, to attempt 
     to identify other parties to pay for the remedial activity. 
     PRP's should be identified as soon as practicable to allow 
     all potentially interested parties to bring their individual 
     expertise and resources to bear on a commonly identified 
     remedy and to fully participate in the remediation of an NPL 
     site if they are expected to bear the expense of the 
     activity. The conferees expect the agency to review all of 
     its activities to determine the extent to which such 
     situations have occurred and, in conjunction with the 
     Department of Justice, make every effort to remedy such 
     actions in a non-confrontational, non-litigious manner.
       Amendment No. 76: Limits administrative expenses for the 
     leaking underground storage tank trust fund to $7,000,000, 
     instead of $5,285,000 as proposed by the House and $8,000,000 
     as proposed by the Senate.
       Amendment No. 77: Provides $500,000 for transfer to the 
     Office of Inspector General instead of $426,000 as proposed 
     by the House and $600,000 as proposed by the Senate.
       Amendment No. 78: Appropriates $15,000,000 for oil spill 
     response as proposed by the Senate instead of $20,000,000 as 
     proposed by the House.
       Amendment No. 79: Limits administrative expenses for oil 
     spill response to $8,000,000 as proposed by the Senate 
     instead of $8,420,000 as proposed by the House.


                   state and tribal assistance grants

       Amendment No. 80: Appropriates $2,323,000,000 for state and 
     tribal assistance grants, instead of $2,340,000,000 as 
     proposed under program and infrastructure assistance by the 
     Senate, and instead of $1,500,175,000 as proposed under water 
     infrastructure/state revolving funds by the House. The water 
     infrastructure/state revolving fund account proposed by the 
     House and stricken by the Senate and the program and 
     infrastructure assistance account proposed by the Senate are 
     deleted, and the new state and tribal assistance grant 
     account is adopted in lieu thereof.
       The conferees have agreed to the creation of this new 
     account, within the structure proposed by the Senate, so as 
     to enhance the Agency's ability to provide performance 
     partnerships, or block grants, to the states and tribal 
     governments. Language creating the performance partnership 
     program and language permitting the Administrator to make 
     multi-media environmental grants to recognized tribal 
     governments, has been included. Language which clarifies that 
     the funds for a grant to the City of Mt. Arlington, New 
     Jersey, appropriated in P.L. 103-327 in accordance with House 
     Report 103-715, were intended for water and sewer 
     improvements, has also been included. Finally, the conferees 
     have included language proposed by the Senate which would 
     allow a portion of the funds appropriated for the 
     construction grants program in fiscal year 1992 and 
     thereafter, under the Clean Water Act for construction grants 
     and special projects, to be used by States for the purposes 
     of administering the completion or closeout of any remaining 
     such projects. States will be required to reimburse the grant 
     recipient from other State funds available to the State to 
     support construction activities.
       From within the appropriated level, the conferees agree to 
     the following amounts:
       $1,125,000,000 for wastewater capitalization grants.
       $275,000,000 for safe drinking water capitalization grants, 
     available only upon authorization and only if such 
     authorization occurs by June 1, 1996. If no such legislation 
     becomes law prior to June 1, 1996, appropriated funds 
     immediately become available for wastewater capitalization 
     grants to the states and tribal governments.
       $225,000,000 for safe drinking water capitalization grants, 
     made available from funds provided in P.L. 103-327 and P.L. 
     103-124, subject to authorization prior to June 1, 1996. If 
     no such authorization for safe drinking water capitalization 
     grants occurs prior to this date, such funds are to be 
     available for wastewater capitalization grants.
       $100,000,000 for architectural, engineering, design and 
     construction related activities for high priority water and 
     wastewater facilities near the United States-Mexico border.
       $50,000,000 for cost shared grants to the State of Texas 
     (Colonias).
       $15,000,000 for grants to Alaska, subject to cost share 
     requirements, for rural and Alaska Native Villages.
       $658,000,000 for state and tribal categorical grants 
     through traditional grants procedures as well as through the 
     performance partnership program. The conferees note this is 
     virtually identical to the fiscal year 1995 level. The 
     conferees agree that such funds are available in unspecified 
     amounts for the following specific programs:
       Non-point source pollution grants under section 319 of the 
     Federal Water Pollution Control Act (FWPCA), including 
     appropriate activities under the Clean Lakes program; water 
     quality cooperative agreements under section 104(b)(3) of 
     FWPCA; public water system supervision grants under section 
     1443(a) of the Public Health Service Act; air resource 
     assistance to State, local and tribal governments under 
     section 105 of the Clean Air Act; radon state grants; control 
     agency resource supplementation under section 106 of FWPCA; 
     wetlands program implementation; underground injection 
     control; pesticide program implementation; lead grants; 
     hazardous waste financial assistance; pesticides enforcement 
     grants; pollution prevention; toxic substances enforcement 
     grants; Indians general assistance grants; and, underground 
     storage tanks. The conferees expect the agency to consult 
     with the Committees on Appropriations and with the states 
     prior to the determination and reporting of the amounts 
     allocated for each of these areas.
       The conferees agree that Performance Partnership Grants are 
     an important step to reducing the burden and increasing the 
     flexibility that state and tribal governments need to manage 
     and implement their environmental protection programs. This 
     is an opportunity to use limited resources in the most 
     effective manner, yet at the same time, produce the results-
     oriented environmental performance necessary to address the 
     most pressing concerns while still achieving a clean 
     environment. As part of the implementation of this program, 
     the conferees agree that no reprogramming requests associated 
     with States and Tribes applying for Performance Partnership 
     Grants need to be submitted to the Committees on 
     Appropriations for approval should the reprogrammings exceed 
     the normal reprogramming limitations.
     
[[Page H 14133]]

       From within the amount appropriated for wastewater 
     capitalization grants, $50,000,000 is to be made available 
     for wastewater grants to impoverished communities pursuant to 
     section 102(d) of H.R. 961 as approved by the House of 
     Representatives on May 16, 1995. The conferees expect the 
     Agency to closely monitor state compliance with this 
     provision to assure that funds are obligated appropriately 
     and in a timely manner. Unused funds allocated for this 
     purpose are to be made available for other wastewater 
     capitalization grants.
       $100,000,000 for the following special assistance grants in 
     the following amounts:
       $39,500,000 for special projects as requested in the budget 
     submission, including $25,000,000 for Boston Harbor, 
     $10,000,000 for the City of New Orleans, $3,000,000 for Fall 
     River and $1,500,000 for New Bedford.
       $5,000,000 for alternative water source projects in West 
     Central Florida.
       $1,750,000 for wastewater infrastructure improvements 
     including $1,500,000 for Manns Choice, Bedford County, 
     Pennsylvania, and $250,000 for Taylor Township, Blair County, 
     Pennsylvania.
       $11,625,000 for continuing clean water improvements at 
     Onondaga Lake.
       $11,625,000 for continuation of the Rouge River National 
     Wet Weather project.
       $22,000,000 for continuation of the Mojave Water Agency 
     groundwater research project.
       $2,500,000 for the refurbishment and construction of 
     sanitary and storm sewer systems in Ogden, Utah.
       $6,000,000 for wastewater facility improvements in the 
     vicinities of Peter Creek ($3,000,000), East Bernstadt/
     Pittsburg ($2,500,000), and Vicco (500,000), Kentucky.
       Amendment No. 81: Inserts a heading as proposed by the 
     Senate and deletes language proposed by the Senate regarding 
     the adoption or implementation of an inspection and 
     maintenance program pursuant to section 182 of the Clean Air 
     Act. The conferees note that this issue has recently been 
     considered in a conference of authorization committees and 
     therefore has become unnecessary to pursue in the context of 
     this legislation.
       Amendment No. 82: Deletes language proposed by the Senate 
     regarding the limitation of funds available to impose or 
     enforce trip reduction measures pursuant to the Clean Air 
     Act. The conferees note that this issue recently has been 
     considered in a conference of authorization committees and 
     therefore has become unnecessary to pursue in the context of 
     this legislation.
       Amendment No. 83: Inserts language similar to that proposed 
     by the Senate which prohibits the expenditure of funds for 
     the signing or publishing for promulgation of a rule 
     concerning new drinking water standards for radon only. The 
     conferees note that this language is identical to that 
     contained in this Act for each of the last two fiscal years.
       Amendment No. 84: Inserts language proposed by the Senate 
     which prohibits the expenditure of funds to sign, promulgate, 
     implement, or enforce certain requirements regarding the 
     regulation for a foreign refinery baseline for reformulated 
     gasoline.
       Amendment No. 85: Inserts language proposed by the Senate 
     which prohibits the expenditure of funds to implement section 
     404(c) of the Federal Water Pollution Control Act, as 
     amended, and which stipulates that no pending actions to 
     implement section 404 (c) with respect to individual permits 
     shall remain in effect after the date of enactment of this 
     Act.
       Amendment No. 86: Deletes language proposed by the Senate 
     regarding an exemption of section 307(b) of the Federal Water 
     Pollution Control Act, as amended, for the Kalamazoo Water 
     Reclamation Plant. Similar language has been included under 
     the environmental programs and management account in 
     Amendment No. 66.
       Amendment No. 87: Deletes language proposed by the Senate 
     prohibiting the expenditure of funds to enforce section 
     211(m)(2) of the Clean Air Act in a nonattainment area in 
     Alaska. Similar language is included in amendment number 88.
       Amendment No. 88: Inserts language proposed by the Senate 
     which prohibits the expenditure of funds to implement the 
     requirements of section 186(b)(2), or sections 187(b) or 
     211(m) of the Clean Air Act for any moderate nonattainment 
     area for which the average daily winter temperature is below 
     0 degrees Fahrenheit.
       Amendment No. 89: Deletes language proposed by the Senate 
     which directs EPA to give priority assistance to small 
     business concerns under section 3(a) of the Small Business 
     Act in its Energy Efficiency and Supply programs, study the 
     feasibility of establishing fees to recover the costs of such 
     assistance, and provide a certain level of funding to support 
     participation in the Montreal Protocol and climate change 
     action plan programs.
       The conferees note that the budget for EPA's ``green 
     programs'' has grown substantially over the past several 
     years. Such growth cannot be sustained within the confines of 
     an increasingly constrained budget. There is no disagreement 
     that the green programs have enabled many companies to 
     improve their profitability by installing energy efficient 
     technologies. While it may be appropriate for the federal 
     government to provide technical assistance to organizations 
     which would not otherwise have the resources to make 
     appropriate investment decisions on energy efficient 
     technologies, such as small businesses, large corporations 
     can and should make such investment decisions without federal 
     assistance. The conferees agree that EPA is to undertake a 
     study to determine the feasibility of establishing fees to 
     recover all reasonable costs incurred by EPA for assistance 
     rendered businesses in its Energy Efficiency and Energy 
     Supply program, as described in the Senate amendment.
       Amendment No. 90: Deletes language proposed by the Senate 
     which would prohibit final regulatory action under the Toxic 
     Substances Control Act restricting the manufacturing, 
     processing, distributing or use of lead, zinc, or brass 
     fishing sinkers or lures, unless the risk to waterfowl cannot 
     be addressed through alternative means. The conferees are 
     extremely concerned that EPA continues to ignore the 
     importance of allocating its budget to those activities which 
     provide for the greatest reduction in risk. EPA has pursued 
     activities which may have exceeded the agency's legal 
     authority in the regulation of lead by seeking to regulate 
     lead uses that pose no significant risks to human health or 
     the environment, such as EPA's proposal to ban the 
     manufacture and distribution of lead fishing sinkers. The 
     agency's proposal presented little credible evidence to 
     suggest that lead fishing sinkers are threatening to human 
     health or waterfowl populations. The conferees expect EPA to 
     engage in activities which maximize the use of its resources 
     to achieve public health and environmental benefits, and 
     therefore believe EPA should not pursue this rulemaking.
       Amendment No. 91: Deletes language proposed by the Senate 
     which directs the investigation and report on the scientific 
     basis for EPA's public recommendations with respect to indoor 
     radon and other naturally occurring radioactive materials. 
     The conferees direct EPA to enter into an arrangement with 
     the National Academy of Sciences to investigate and report on 
     the scientific basis for EPA's recommendations relative to 
     indoor radon and other naturally occurring radioactive 
     materials (NORM). The Academy is to examine EPA's guidelines 
     in light of the recommendations of the National Council on 
     Radiation Protection and Measurements and other peer-reviewed 
     research by the National Cancer Institute, the Centers for 
     Disease Control, and others. The Academy shall summarize the 
     principal areas of agreement and disagreement among these 
     bodies and shall evaluate the scientific and technical basis 
     for any differences that exist. EPA is to submit this report 
     to the appropriate committees of Congress within 18 months of 
     the date of enactment of this Act, and state its views on the 
     need to revise the guidelines for radon and NORM in light of 
     the Academy's evaluation. The agency also shall explain the 
     technical and policy basis for such views.
       Amendment No. 92: Deletes language proposed by the Senate 
     regarding implementation of the Science to Achieve Results 
     (STAR) program and restricting the hire of new staff 
     positions under the contractor conversion program. The STAR 
     and contractor conversion issues have been addressed under 
     amendment number 65.
       Amendment No. 93: Inserts language which provides necessary 
     expenses to continue the functions of the Council on 
     Environmental Quality and Office of Environmental Quality as 
     proposed by the Senate, instead of language proposed by the 
     House and stricken by the Senate to carry out the orderly 
     termination of the CEQ.


                  federal emergency management agency

       Amendment No. 94: Appropriates $222,000,000 for disaster 
     relief instead of $235,500,000 as proposed by the House and 
     no funds as proposed by the Senate. The conferees note that 
     the 1995 supplemental appropriation for disaster relief, 
     totaling over $6,500,000,000 coupled with available 
     unobligated appropriations, should be more than adequate to 
     meet all current and expected disaster requirements. Should 
     an FY 1996 supplemental be necessary, the conferees would 
     expect to respond and make such appropriations available in a 
     timely manner.
       The conferees note that with the passing of the 1995 
     hurricane seasons, there is confusion surrounding FEMA's 
     determination of whether beach erosion under different 
     conditions is eligible for assistance under the Stafford Act. 
     While the Code of Federal Regulations certainly provides 
     clear understanding of the rules by which FEMA operates, 
     there nevertheless exists questions as to the legal 
     underpinnings of this regulation. To help clarify the issue 
     and avoid future controversy, the agency is directed to 
     report within 45 days of enactment of this Act on the legal 
     basis for this regulation and on the possible alternatives 
     that exist to maximize mitigation and assistance efforts 
     within the constraints of available financial resources.
       The conferees have been made aware of an unfortunate 
     situation following the Northridge Earthquake whereby, based 
     on assurances made by FEMA field agents, significant 
     financial resources were spent or obligated to make 
     appropriate repairs of buildings deemed eligible for 
     assistance. Over a year following those assurances, a 
     determination that such expenses were not eligible was 
     received form FEMA headquarters, including a request for 
     reimbursement of spent funds. As FEMA fully acknowledges that 
     their erroneous assurance of assistance is the genesis of 
     this problem, the conferees direct FEMA to make every effort 
     to remedy this situation through appropriate administrative 
     procedures.
       Amendment No. 95: Appropriates $168,900,000 for salaries 
     and expenses as proposed by the Senate instead of 
     $162,000,000 as proposed by the House.
     
[[Page H 14134]]

       Amendment No. 96: Appropriates $4,673,000 for the Office of 
     the Inspector General as proposed by the Senate instead of 
     $4,400,000 as proposed by the House.
       Amendment No. 97: Deletes reference to the Federal Civil 
     Defense Act, as amended, with respect to activities under the 
     emergency management planning and assistance account. This is 
     a technical deletion as activities under this Act have been 
     superseded by other Acts. The conferees have included 
     language under amendment number 114 requested by FEMA in a 
     budget amendment that would direct FEMA to sell its costly 
     inventory of trailer/mobile homes which in the past have been 
     used to meet temporary housing needs of some disaster 
     victims. The costs of transporting these trailers to a 
     disaster site, as well as the costs of necessary 
     refurbishment upon return to inventory, far exceed the 
     benefits provided by the trailers. More important, FEMA 
     believes the important needs of emergency housing can be met 
     in less expensive yet more appropriate ways. In making these 
     sales, FEMA is directed to maximize receipts and minimize 
     expenses to the greatest extent possible.
       Within the overall appropriation, the conferees have 
     included $950,000 for earthquake hazard research and 
     mitigation activities at Metro and DOGAMI; $1,000,000 for a 
     statewide and regional hurricane proof evacuation shelter 
     directory for the states of Texas, Louisiana, Mississippi, 
     Alabama, Florida, Arkansas, and Georgia; and $4,000,000 in 
     additional funds for state emergency management assistance 
     (EMA) grants. FEMA is expected to reduce its underground 
     storage tank program to offset these additional EMA grants. 
     The remaining funds necessary to meet these additional 
     expenses should be proposed through normal reprogramming 
     procedures.
       The conferees note that FEMA has funded certain planning 
     positions in State emergency management agencies at 100 
     percent during fiscal year 1995. The conferees direct the 
     agency to continue funding these positions at this same level 
     during 1996, but also expect the agency to make appropriate 
     plans during the fiscal year, including notifying the States 
     if necessary, to reduce the federal share to no more than 50 
     percent for fiscal year 1997 and beyond.
       Amendment No. 98: Appropriates $100,000,000 for emergency 
     food and shelter as proposed by the House instead of 
     $114,173,000 as proposed by the Senate.
       Amendment No. 99: Deletes language proposed by the House 
     and stricken by the Senate which prohibits the expenditure of 
     funds for any further work on effective Flood Insurance Rate 
     Maps for certain areas in and around the City of Stockton and 
     San Joaquin County, California. The conferees are aware that 
     the City of Stockton and San Joaquin County, California are 
     restoring existing levee systems that a FEMA flood hazard 
     restudy has determined no longer meet FEMA's minimum flood 
     protection standard. The conferees are also aware that the 
     City and County have recently filed an appeal regarding the 
     determination by that study and were thus satisfied that, 
     just as with bill language, the duration of the appeal would 
     provide the opportunity to fully and properly deal with this 
     important matter. The conferees therefore direct FEMA to 
     thoroughly analyze the appeal and develop alternatives that 
     will lead to a resolution of this situation prior to the 
     conclusion of the appeal process.
       The Members of Congress, local officials, and private 
     citizens who have addressed this issue all wish to achieve a 
     result that will not hinder the economic development of the 
     area while, at the same time, ensuring the safety and health 
     of all residents. The conferees share this goal. The National 
     Flood Insurance Program (NFIP), a community-participation 
     program, has a history of cooperation with local governments 
     that spans more than two decades. During this time, a great 
     deal of development has taken place in mapped areas in 
     thousands of communities across the country. Therefore, to 
     assist the City and County in guiding new development, the 
     conferees direct FEMA to first assist by approximating the 
     study flood hazard areas identified on the preliminary Flood 
     Insurance Rate Maps (FIRM's) based on FEMA's restudy. FEMA 
     also is directed to consult with the City and County to 
     ensure that the design and construction for the restored 
     levees will satisfy the criteria for accrediting those 
     structures on FIRMs that will become effective six months 
     after all appeals are fully resolved. Further, the conferees 
     direct FEMA to revise the FIRMs at the earliest date possible 
     to reflect accredited improvements to the levee systems as 
     they are completed.
       The conferees note that no funds have been included to 
     produce Flood Rate Insurance Directories (FRIDs) or to sell 
     flood insurance directly to the public. While the conferees 
     support FEMA's effort to increase the use of federal flood 
     insurance, such sales should continue through normal private 
     commercial activity. The conferees are also in agreement that 
     FEMA should make no effort to suspend, revoke, or limit the 
     participation of St. Charles County, Missouri in the National 
     Flood Insurance program because of the permitting of levee 
     improvements to publicly sponsored levee districts.
       Finally, the conferees agree the FEMA should conduct a 
     pilot project of a working capital fund during fiscal year 
     1996, and report on the outcome of the pilot periodically 
     throughout the course of the fiscal year.

                    General Services Administration


                      consumer information center

       Amendment No. 100: Provides for a change in the 
     administrative expenses limitation to $2,602,000 as proposed 
     by the Senate instead of $2,502,000 as proposed by the House.
       The conferees agree to an increase in the administrative 
     expenses limitation for the Consumer Information Center to 
     reflect the increased responsibilities of the Center as it 
     takes on efforts previously assigned to the Office of 
     Consumer Affairs.

                Department of Health and Human Services


                       office of consumer affairs

       Amendment No. 101: Appropriates no funding for the Office 
     of Consumer Affairs, as proposed by the Senate instead of 
     $1,811,000 as proposed by the House.
       The conferees agree to the Senate position to delete all 
     funding for the Office of Consumer Affairs. The conferees 
     agree that the functions of producing the Consumer Resources 
     Handbook and organizing the Constituent Resource Exposition 
     are to be transferred to the Consumer Information Center. 
     Language is included in the bill to facilitate the transfer 
     of personnel and responsibilities associated with closure of 
     this office.

             National Aeronautics and Space Administration


                           human space flight

       Amendment No. 102: Appropriates $5,456,600,000 for Human 
     Space Flight, instead of $5,449,600,000 as proposed by the 
     House and $5,337,600,000 as proposed by the Senate.
       The conference agreement reflects the following change from 
     the budget request:
       A reduction of $53,000,000 to reflect savings which accrue 
     from the closure of the Yellow Creek Facility at Iuka, 
     Mississippi.
       The conferees believe that savings are achievable in 
     shuttle operations when the recommendations called for in the 
     Kraft report on shuttle operations are implemented. The 
     conferees are encouraged that NASA has begun to aggressively 
     implement the recommendations and look forward to seeing the 
     financial savings materialize while maintaining safe shuttle 
     operations.


                     nasa industrial plant, downey

       The conferees are aware of ongoing discussions between 
     NASA, Rockwell International, and officials of the City of 
     Downey, California, regarding possible disposition of NASA 
     real property at the NASA Industrial Plant, Downey. The 
     conferees understand that this planning effort could 
     culminate in a proposal for disposition of NASA real property 
     at the Downey site which may: consolidate Space Shuttle 
     engineering activities, thereby reducing annual Government 
     operations costs; possibly produce proceeds to the U.S. 
     Treasury from transfer of portions of the NASA real property; 
     and make available portions of the real property for 
     commercial/industrial use. The conferees direct that NASA 
     report to the Committees on Appropriations on progress in 
     this disposition planning effort, including any potential 
     economic benefits to the Government, by February 1, 1996.


                         termination liability

       The conferees fully support deployment of the space station 
     but recognize the funds appropriated by this Act for the 
     development of the space station may not be adequate to cover 
     all potential contractual commitments should the program be 
     terminated for the convenience of the Government. 
     Accordingly, if the space station is terminated for the 
     convenience of the Government, additional appropriated funds 
     may be necessary to cover such contractual commitments. In 
     the event of such termination, it would be the intent of the 
     conferees to provide such additional appropriations as may be 
     necessary to provide fully for termination payments in a 
     manner which avoids impacting the conduct of other ongoing 
     NASA programs.
       Amendment No. 103: Deletes House language delaying the 
     availability of $390,000,000 for Space Station until August 
     1, 1996.


                  science, aeronautics and technology

       Amendment No. 104: Appropriates $5,845,900,000 for Science, 
     Aeronautics and Technology, instead of $5,588,000,000 as 
     proposed by the House and $5,960,700,000 as proposed by the 
     Senate.
       The conference agreement reflects the following changes 
     from the budget request:
       A general reduction of $33,000,000 to be distributed in 
     accordance with normal reprogramming procedures.
       A reduction of $13,700,000 from the budget request for the 
     Stratospheric Observatory for Infrared Astronomy (SOFIA). The 
     reduction will leave $35,000,000 in fiscal year 1996 to begin 
     this program to replace the Kuiper Airborne Observatory.
       An increase of $51,500,000 for the Gravity Probe-B program 
     which was not included in the budget request.
       A decrease of $5,000,000 for the Space Infrared Telescope 
     Facility, leaving $10,000,000 to begin this effort. NASA is 
     directed to provide no additional funding for this effort 
     unless specifically approved by the House and Senate 
     Committees on Appropriations.
       The conferees agree to provide $20,000,000 for initiation 
     of the Solar-Terrestrial Probes program. The funding includes 
     $15,000,000 to begin the TIMED mission and $5,000,000 for 
     design studies of the inner magnetospheric imager.
       The conference agreement includes an additional $3,000,000 
     for the university explorer 

[[Page H 14135]]
     program to develop small, inexpensive spacecraft for astronomy and 
     space physics missions.
       A general reduction of $20,000,000 for Life and 
     Microgravity Science. The reduction is not to be taken 
     against any space station programs. NASA should develop a 
     plan that accommodates the budget decrease while minimizing 
     its impact on the early scientific return from space station 
     operations. This plan should emphasize how NASA will ensure 
     the quality of the science it will conduct and maximize the 
     value of the results it obtains from the early utilization of 
     space station.
       An increase of $4,500,000 is provided for space radiation 
     research in accordance with direction contained in House 
     report 104-201.
       Within Mission to Planet Earth, the conference agreement 
     contains a reduction of $6,000,000 for the Consortium for 
     International Earth Sciences Information Network. The 
     conferees agree that the Consortium and NASA are free to 
     pursue programmatic options under existing contracts between 
     CIESIN and NASA and the Consortium is not precluded from 
     competing for future contracts with NASA. A further reduction 
     of $75,000,000 is to be distributed in accordance with normal 
     reprogramming guidelines. The conferees are in agreement on 
     the following:
       NASA should work with the Department of Agriculture to 
     ensure that remote sensing data collected through this 
     program will be better used for agriculture and resource 
     management;
       From within the funds for Mission to Planet Earth, NASA is 
     urged to provide for continued development and refinement of 
     visualization techniques and capabilities currently underway 
     through the Jet Propulsion Laboratory to incorporate remotely 
     sensed data and information into formal informational and 
     educational programs;
       From within the available funding, $5,000,000 should be 
     used toward full development of a windsat mission;
       Any restructuring of the Earth Observing System Data 
     Information System which may result from the recently issued 
     National Academy of Sciences report should be implemented in 
     such a manner as to minimize counterproductive disruptions at 
     the Marshall Space Flight Center.
       A general reduction of $30,000,000 to the Aeronautical 
     Research and Technology portion of the budget to be 
     distributed in accordance with normal reprogramming 
     guidelines. The conferees note that NASA and the FAA have 
     recently established a mechanism to coordinate their efforts 
     toward an advanced air traffic management system. While the 
     House reduced the budget request by $20,000,000 because such 
     an agreement had not yet been reached, the conferees believe 
     some reduction in funding is still achievable and the program 
     is not exempt from the general reduction. Likewise, the 
     conferees do not intend that the entire reduction be applied 
     against the High Performance Computing and Communications 
     (HPCC) program, nor is the program exempt from reduction. The 
     conferees recognize the national interest served by providing 
     the public access to earth and space images and data through 
     a national information infrastructure and strongly support 
     funding to carry out such NASA educational and public 
     outreach activities funded in the HPCC account.
       Within the Space Access and Technology portion of the 
     account, a reduction of $7,000,000 from the Clean Car 
     program, a reduction of $21,300,000 for the Earth 
     Applications systems to return the program to the fiscal year 
     1995 funding level, an increase of $3,000,000 for commercial 
     space activities to be used only as provided for in 
     authorizing legislation, an increase of $4,500,000 for a 
     rural state technology transfer center as provided for in 
     authorizing legislation. The conference agreement deletes 
     without prejudice the increase of $20,000,000 proposed by the 
     Senate for development of the reusable launch vehicle (X-33). 
     Nonetheless, the conferees have significant concerns over the 
     current funding profile for this ambitious developmental 
     effort in that amounts proposed for the initial years may not 
     be adequate to resolve technical design and engineering 
     issues necessary to support scheduled investment decisions by 
     private industry. The conferees are very supportive of this 
     innovative public-private partnership in developing a more 
     efficient and commercially viable launch system and direct 
     NASA to conduct a re-examination of the current funding 
     profile, including amounts recommended for the remainder of 
     fiscal year 1996. The conferees expect NASA to submit its 
     findings and recommendations in this regard in a report to 
     accompany its justifications for the fiscal year 1997 budget, 
     and to request a reprogramming, if necessary, to optimize 
     initial developmental efforts during the balance of the 
     current year.
       A general reduction of $20,000,000 for the mission 
     communications program, to be distributed in accordance with 
     established reprogramming procedures.
       A general reduction of $16,500,000 for Academic Programs, 
     leaving funding at the fiscal year 1995 level. The conferees 
     urge NASA to consider funding the Discovery Center project 
     and the Rural Teacher Resource Center. These projects are 
     aimed at significantly enhancing science, educational, and 
     outreach services for an underserved region of the county. 
     The Oregon State System for Higher Education is developing a 
     network infrastructure for advanced technology research and 
     education utilizing high speed and high capacity 
     communications systems with a prior year grant of funds from 
     NASA under its academic programs activity. The conferees 
     understand that this project has received substantial 
     industry contributions, however, some additional federal 
     support may be necessary to facilitate the acquisition of 
     equipment and for space modifications. NASA is urged to give 
     priority consideration to assisting in the prompt completion 
     of this important initiative.


                            mission support

       Amendment No. 105: Appropriates $2,502,200,000 for Mission 
     Support, instead of $2,618,200,000 as proposed by the House 
     and $2,484,200,000 as proposed by the Senate.
       The conference agreement reflects the following changes 
     from the budget request:
       A decrease of $125,000,000 in salaries and related expenses 
     resulting from the voluntary retirement of individuals during 
     fiscal year 1995 which had not been anticipated when the 
     fiscal year 1996 budget was submitted.
       A general reduction of $25,000,000 from research and 
     operations support, subject to reprogramming guidelines.
       A reduction of $50,000,000 from space communications, to be 
     applied at the agency's discretion to reprogramming 
     guidelines.
       A reduction of $24,000,000 from construction of facilities. 
     The conferees agree that NASA may use excess fiscal year 1994 
     funding, particularly identified excess planning and design 
     funds, to satisfy fiscal year 1996 requirements.
       Amendment No. 106: Deletes House administrative provision 
     regarding leasing of contractor funded facilities where such 
     lease would amortize the contractor investment unless 
     specifically approved in appropriations Act.
       Amendment No. 107: Adds Senate language to the House 
     administrative provision regarding transfer of facilities at 
     Iuka, Mississippi. The new language will direct that any 
     Federal entity having previous contact with the site will 
     have responsibility for environmental remediation.
       Amendment No. 108: Deletes House administrative provision 
     directing a study of closing or re-structuring NASA flight 
     operations and research centers. The conferees agree to the 
     Senate report language requesting periodic progress reports 
     on the implementation of recommendations contained in the 
     NASA zero-based review.
       Amendment No. 109: Deletes Senate administrative provision 
     delaying the availability of $390,000,000 for Space Station 
     until August 1, 1996. Adds an administrative provision 
     providing up to $50,000,000 of transfer authority for use at 
     the discretion of the Administrator.
       The conferees have agreed to include an administrative 
     provision providing transfer authority to the National 
     Aeronautics and Space Administration to deal with unforeseen 
     emergencies. To ensure that there is no adverse effect on any 
     NASA program, the conferees have included general transfer 
     authority of up to $50,000,000 to be used at the discretion 
     of the Administrator subject to the case-by-case approval by 
     the House and Senate Appropriations Committees.


                      National Science Foundation

       Amendment No. 110: Appropriates $2,274,000,000 for Research 
     and Related Activities, instead of $2,254,000,000 as proposed 
     by the House and $2,294,000,000 as proposed by the Senate.
       The conferees agree that the reduction within the Research 
     and Related Activities account should be allocated by the 
     National Science Foundation in accordance with its internal 
     procedures for resource allocation, subject to approval by 
     the House and Senate Committees on Appropriations.


                         U.S. ANTARCTIC PROGRAM

       The conferees agree with the Senate report language calling 
     for a government-wide policy review of the U.S. presence in 
     the Antarctic to be conducted by the National Science and 
     Technology Council and reiterate that such a review must 
     include all program participants, including the Department of 
     Defense. The review should be completed and submitted to the 
     Congress no later than March 31, 1996.


                     OPTICAL AND INFRARED ASTRONOMY

       The conferees recognize the need for the National Science 
     Foundation to support modernizing the research infrastructure 
     in astronomy and other disciplines. The conferees are equally 
     supportive of the flexible matching requirements employed by 
     the Foundation in its Academic Research Infrastructure 
     program and expect they will be continued in fiscal year 
     1996.
       Amendment No. 111: Deletes language proposed by the Senate 
     to fund fair housing activities under the Department of 
     Justice. Language transferring such functions, with delayed 
     implementation of April 1, 1997 is included under fair 
     housing activities under title II of this Act.
       Amendment No. 112: The Senate bill contained a provision 
     moving the Office of Federal Housing Enterprise Oversight 
     (OFHEO), which is the financial safety and soundness 
     regulator of Fannie Mae and Freddie Mac (collectively, 
     ``GSEs''), from the Department of Housing and Urban 
     Development of the Department of the Treasury. The conference 
     agreement does not contain this provision. Nevertheless, the 
     conferees want to emphasize the seriousness with which they 
     view the underlying Senate provision.
       In particular, the primary function of OFHEO is to issue 
     risk-based capital standards to ensure the safety and 
     soundness of 

[[Page H 14136]]
     the GSEs, and that these standards, as yet unissued, were to be 
     finalized by November 28, 1994. The conferees urge OFHEO to 
     refocus its emphasis from lower priority activities, such as 
     participation in conferences and political forums, to 
     financial examinations and the development of final risk-
     based capital standards.

                      TITLE V--GENERAL PROVISIONS

       Amendment No. 113: Makes technical language change.
       Amendment No. 114: Deletes language proposed by the House 
     and stricken by the Senate regarding contractor conversions 
     at the Environmental Protection Agency. Additional language 
     relative to this matter is included in amendment numbered 65.
       Inserts language directing FEMA to sell surplus mobile 
     homes/trailers from its inventory. Additional information on 
     this matter is discussed under amendment numbered 97.
       Amendment No. 115: Inserts language proposed by the Senate 
     which allows the use of other funds available to the 
     Department of Health and Human Services to facilitate 
     termination of the Office of Consumer Affairs. This matter is 
     also mentioned in amendment numbered 101.
       Amendment No. 116: Deletes language proposed by the Senate 
     regarding energy savings at Federal facilities.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1996 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1995 amount, the 1996 
     budget estimates, and the House and Senate bills for 1996 
     follow:

New budget (obligational) authority, fiscal year 1995...$89,920,161,061
Budget estimates of new (obligational) authority, fiscal 89,869,762,093
House bill, fiscal year 1996.............................79,697,360,000
Senate bill, fiscal year 1996............................81,009,212,000
Conference agreement, fiscal year 1996...................80,606,927,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1995..-9,313,234,061
  Budget estimates of new (obligational) authority, fisca-9,262,835,093
House bill, fiscal year 1996...............................+909,567,000
Senate bill, fiscal year 1996..............................-402,285,000

     Jerry Lewis,
     Tom DeLay,
     Barbara F. Vucanovich,
     James T. Walsh,
     Dave Hobson,
     Joe Knollenberg,
     Rodney P. Frelinghuysen,
     Mark W. Neumann,
     Bob Livingston,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard Shelby,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Mark O. Hatfield,
     Barbara A. Mikulski,
     Patrick Leahy,
     J. Bennett Johnston,
     Bob Kerrey,
     Robert C. Byrd,
     Managers on the Part of the Senate.

                          ____________________