[Congressional Record Volume 142, Number 9 (Wednesday, January 24, 1996)]
[Senate]
[Pages S350-S353]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1995

  Mr. LOTT. Mr. President, I ask unanimous consent that the Banking 
Committee be immediately discharged from further consideration of S. 
1494, and that the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1494) to provide an extension for fiscal year 
     1996 for certain programs administered by the Secretary of 
     Housing and Urban Development and the Secretary of 
     Agriculture, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BOND. Mr. President, I urge support for the Housing Opportunity 
Program Extenders Act of 1995. This legislation is designed to provide 
HUD and Farmers Home with authority to continue certain housing 
programs which are strongly supported by the American public.
  Most importantly, similar to the VA/HUD fiscal year 1996 
appropriations bill, this bill would require HUD to renew expiring 
section 8 project-based contracts for fiscal year 1996 for 1 year at 
current rents. There are some 900,000 FHA-insured units with section 8 
project-based assistance expiring over the next 10 years. Many of these 
section 8 contracts are oversubsidized under existing contracts and 
fiscal responsibility requires that Congress contain the spiraling 
costs associated with this inventory. Moreover, under a recent HUD 
legal opinion, HUD may renew these expiring section 8 project-based 
contracts at the market rent with some exceptions for contract rents up 
to 120 percent of the market rents; this means that these section 8 
projects will begin to default and face foreclosure by HUD during 
fiscal year 1996.
  I believe it is critical that Congress reform and adjust the costs, 
including section 8 costs, of this assisted housing to the existing 
market rents. However, in doing so, we must balance the cost of the 
expiring section 8 contracts with the cost of foreclosure of these 
projects to the FHA insurance fund, as well as the significant social 
policy of the possible displacement of low-income housing residents and 
the disinvestment by project owners in these projects which could 
result in significant deterioration of this valuable housing stock. 
Like the VA/HUD fiscal year 1996 appropriations bill, renewing these 
section 8 contracts for 1 year will provide the Banking Committee with 
an opportunity to develop a dialog and resulting meaningful policy that 
will preserve this valuable housing resource as low-income housing at a 
reasonable cost to the Federal Government.
  Second, the legislation would extend the Home Equity Conversion 
Mortgage Program through fiscal year 1996, increasing the maximum 
number of units eligible for insurance from 25,000 to 30,000. This 
program is designed to allow the elderly to tap the accumulated equity 
in their homes for needed expenses without the risk of losing the 
housing as a principal residence. This is a successful program that is 
growing in popularity among the elderly population as an option to 
assist in providing continuing independence, both financially and 
through the continuing use of their homes as a principal resident.
  Third, the legislation would extend the home ownership program under 
the CDBG Program as a continuing eligible activity through fiscal year 
1996. This program is widely supported by a number of communities 
throughout the Nation which use the program as an additional resource 
to expand homeownership opportunities.
  Finally, the bill would extend the FmHA's section 515 rural 
multifamily program for fiscal year 1996. Currently, the fiscal year 
1996 Agriculture appropriations has limited the section 515 funding for 
fiscal year 1996 to rehabilitation. However, there is a significant 
number of section 515 projects in the development pipeline. Section 515 
projects are, in many cases, the only available and affordable low-
income housing in rural areas. While there has been substantial 
criticism leveled at abuses in the section 515 program, FmHA has 
addressed a number of the failings in the program and the Banking 
Committee has pledged to review closely the section 515 program and 
address any concerns as part of a major housing and community 
development overhaul and reform bill.
  In addition, a manager's amendment to this bill legislation would 
incorporate Habitat for Humanity as an eligible organization under the 
National Community Development Initiative [NCDI]. Habitat for Humanity 
is one of the best models in this country for the development of 
affordable low-income housing. The foundation of this program is sweat 
equity, where a potential homeowner must contribute their own labor and 
hard work to the construction of their home and the homes of others. In 
this way, participating families develop a tangible bond with their 
homes combined with a strong interest in maintaining them. Since 1976, 
Habitat has constructed over 40,000 homes worldwide, in every U.S. 
State and in 45 other countries. As a consequence, some 250,000 people 
are living in decent, safe and affordable housing.
  Under this program, Habitat for Humanity would receive a $25 million 
authorization to assist in the acquisition of land or infrastructure 
improvements, and only in the United States. I urge HUD to develop 
flexible requirements for Habitat for Humanity's participation in NCDI 
with deference to the underlying vision of homeowner contribution to 
the construction of their home.
  This manager's amendment also would provide clear statutory guidance 
to empower PHAs and assisted property owners with the tools to screen 
out and evict from public and assisted housing persons who illegally 
use drugs or whose abuse of alcohol is a risk to other tenants. I 
cannot emphasize enough the need to take the bull by the horns and 
provide real solutions to the problems created by alcohol abuse and 
illegal drug use in federally assisted housing.
  Mr. President, this legislation is bipartisan, simple, 
straightforward and necessary. I strongly urge my colleagues to support 
this legislation.


                           Amendment No. 3118

               (Purpose: To make a series of amendments)

  Mr. LOTT. I understand that there is a managers' amendment at the 
desk in behalf of Senators D'Amato, Mack, and Baucus.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Mississippi [Mr. Lott] for Mr. D'Amato, 
     for himself, Mr. Mack, and Mr. Baucus, proposes an amendment 
     numbered 3118.

  Mr. LOTT. Mr. President, I ask unanimous consent that the reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 2, line 5, strike ``During fiscal year 1996'' and 
     insert the following: ``To the extent that amounts are made 
     available in advance in any appropriations act for contract 
     renewals under section 8 of the United States Housing Act of 
     1937 for fiscal year 1996''.
       On page 2, line 11, insert ``project-based'' after ``for''.
       On page 5, between lines 7 and 8, insert the following new 
     sections:

     SEC. 7. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND 
                   AFFORDABLE HOUSING.

       Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 
     9816 note) is amended--
       (1) in subsection (a)--
       (A) by striking ``Initiative to develop'' and inserting the 
     following: ``Initiative--
       ``(1) to develop'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new paragraph:
       ``(2) for national or regional organizations or consortia, 
     including Habitat for Humanity International, that have 
     experience in providing or facilitating self-help housing 
     homeownership opportunities.'';
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) innovative homeownership opportunities for the 
     acquisition and rehabilitation of single family housing 
     through the provision 

[[Page S351]]
     of self-help housing, under which the homeowner contributes a 
     significant amount of sweat equity toward the construction of 
     the new dwelling; and''; and
       (3) by striking subsection (e) and inserting the following:
       ``(e) Authorization.--There are authorized to be 
     appropriated to carry out this section $50,000,000 for fiscal 
     year 1996, of which $25,000,000 shall be made available to 
     Habitat for Humanity International for activities under this 
     section.''.

     SEC. 8. THE NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOPMENT 
                   PROGRAM.

       Section 930(c) of the Housing and Community Development Act 
     of 1992 (Public Law 102-550, 106 Stat. 3887) is amended to 
     read as follows:
       ``(c) Authorization.--There are authorized to be 
     appropriated to carry out this section $10,000,000 for fiscal 
     year 1996.''.

     SEC. 9. AMENDMENTS TO THE UNITED STATES HOUSING ACT OF 1937 
                   FOR SAFETY AND SECURITY IN PUBLIC AND ASSISTED 
                   HOUSING.

       (a) Contract Provisions and Requirements.--Section 6 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437d) is 
     amended--
       (1) in subsection (k), by striking ``on or near such 
     premises'' and inserting ``on or off such premises''; and
       (2) in subsection (l)(5), by striking ``on or near such 
     premises'' and inserting ``on or off such premises''.
       (b) Availability of Criminal Records for Screening and 
     Eviction; Eviction for Drug-Related Activity.--Section 6 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437d) is 
     amended by adding at the end the following new subsections:
       ``(q) Availability of Records.--
       ``(1) In general.--
       ``(A) Provision of information.--Notwithstanding any other 
     provision of law, except as provided in subparagraph (B), the 
     National Crime Information Center, police departments, and 
     other law enforcement agencies shall, upon request, provide 
     information to public housing agencies regarding the criminal 
     conviction records of adult applicants for, or tenants of, 
     public housing for purposes of applicant screening, lease 
     enforcement, and eviction.
       ``(B) Exception.--Except as provided under any provision of 
     State, tribal, or local law, no law enforcement agency 
     described in subparagraph (A) shall provide information under 
     this paragraph relating to any criminal conviction if the 
     date of that conviction occurred 5 or more years prior to the 
     date on which the request for the information is made.
       ``(2) Opportunity to dispute.--Before an adverse action is 
     taken with regard to assistance under this title on the basis 
     of a criminal record, the public housing agency shall provide 
     the tenant or applicant with a copy of the criminal record 
     and an opportunity to dispute the accuracy and relevance of 
     that record.
       ``(3) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under paragraph (1).
       ``(4) Records management.--Each public housing agency shall 
     establish and implement a system of records management that 
     ensures that any criminal record received by the public 
     housing agency is--
       ``(A) maintained confidentially;
       ``(B) not misused or improperly disseminated; and
       ``(C) destroyed, once the purpose for which the record was 
     requested has been accomplished.
       ``(5) Definition.--For purposes of this subsection, the 
     term `adult' means a person who is 18 years of age or older, 
     or who has been convicted of a crime as an adult under any 
     Federal, State, or tribal law.
       ``(r) Eviction for Drug-Related Activity.--Any tenant 
     evicted from housing assisted under this title by reason of 
     drug-related criminal activity (as that term is defined in 
     section 8(f)(5)) shall not be eligible for housing assistance 
     under this title during the 3-year period beginning on the 
     date of such eviction, unless the evicted tenant successfully 
     completes a rehabilitation program approved by the public 
     housing agency (which shall include a waiver of this 
     subsection if the circumstances leading to eviction no longer 
     exist).''.
       (c) Limitation on Occupancy in Elderly and Disabled 
     Housing.--
       (1) In general.--Section 7 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437e) is amended by adding at the end the 
     following new subsection:
       ``(h) Limitation on Occupancy in Designated Projects.--
       ``(1) Occupancy limitation.--Notwithstanding any other 
     provision of law, a dwelling unit in a public housing project 
     (or portion of a project) that is designated under subsection 
     (a) shall not be occupied by any person whose illegal use (or 
     pattern of illegal use) of a controlled substance or abuse 
     (or pattern of abuse) of alcohol provides reasonable cause 
     for the public housing agency to believe that such occupancy 
     could interfere with the health, safety, or right to peaceful 
     enjoyment of the premises by the tenants of the public 
     housing project.
       ``(2) Required statement.--A public housing agency may not 
     make a dwelling unit in a public housing project (or portion 
     of a project) designated under subsection (a) available for 
     occupancy to any family, unless the application for occupancy 
     by that family is accompanied by a signed statement that no 
     person who will be occupying the unit illegally uses a 
     controlled substance, or abuses alcohol, in a manner that 
     would interfere with the health, safety, or right to peaceful 
     enjoyment of the premises by the tenants of the public 
     housing project.''.
       (2) Lease provisions.--Section 6(l) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) by redesignating paragraph (6) as paragraph (7); and
       (C) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) provide that any occupancy in violation of section 
     7(h)(1) or the furnishing of any false or misleading 
     information pursuant to section 7(h)(2) shall be cause for 
     termination of tenancy; and''.
       (d) Ineligibility of Illegal Drug Users and Alcohol Abusers 
     for Assisted Housing.--Section 16 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437n) is amended by adding at 
     the end the following new subsection:
       ``(e) Ineligibility of Illegal Drug Users and Alcohol 
     Abusers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a public housing agency shall establish standards for 
     occupancy in public housing dwelling units--
       ``(A) that prohibit occupancy in any such unit by any 
     person--
       ``(i) who the public housing agency determines is illegally 
     using a controlled substance; or
       ``(ii) if the public housing agency determines that it has 
     reasonable cause to believe that such person's illegal use 
     (or pattern of illegal use) of a controlled substance, or 
     abuse (or pattern of abuse) of alcohol, could interfere with 
     the health, safety, or right to peaceful enjoyment of the 
     premises by the tenants of the public housing project; and
       ``(B) that allow the public housing agency to terminate the 
     tenancy in any public housing unit of any person--
       ``(i) if the public housing agency determines that such 
     person is illegally using a controlled substance; or
       ``(ii) whose illegal use of a controlled substance, or 
     whose abuse of alcohol, is determined by the public housing 
     agency to interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by the tenants of the 
     public housing project.
       ``(2) Inapplicability to indian housing.--This subsection 
     does not apply to any dwelling unit assisted by an Indian 
     housing authority.''.

     SEC. 10. ELIGIBLE HOME EQUITY CONVERSION MORTGAGES.

       Section 255(d)(3) of the National Housing Act (12 U.S.C. 
     1715z-20(d)(3)) is amended to read as follows:
       ``(3) be secured by a dwelling that is designed principally 
     for a 1- to 4-family residence in which the mortgagor 
     occupies 1 of the units;''.
       On page 5, strike line 8, and insert the following:

     SEC. 11. APPLICABILITY.

  Mr. LOTT. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the bill be deemed read for a third time and passed, the 
motion to reconsider be laid upon the table, and that any statements 
relating to the bill be placed at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3118) was agreed to.
  The bill (S. 1494), as amended, was deemed read a third time, and 
passed, as follows:

                                S. 1494

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

     SECTION 1. SHORT TITLE; DEFINITION.

       (a) Short Title.--This Act may be cited as the ``Housing 
     Opportunity Program Extension Act of 1995''.
       (b) Definition.--For purposes of this Act, the term 
     ``Secretary'' means the Secretary of Housing and Urban 
     Development.

     SEC. 2. SECTION 8 CONTRACT RENEWALS.

       (a) In General.--To the extent that amounts are made 
     available in advance in any appropriations Act for contract 
     renewals under section 8 of the United States Housing Act of 
     1937 for fiscal year 1996, with respect to any project that 
     is determined by the Secretary to meet housing quality 
     standards under the United States Housing Act of 1937 and to 
     be otherwise in compliance with that Act, at the request of 
     the owner of the project, the Secretary shall renew, for a 
     period of 1 year, any contract for project-based assistance 
     under section 8 of the United States Housing Act of 1937 that 
     expires or terminates during fiscal year 1996, at current 
     rent levels under the expiring or terminating contract.
       (b) Amendments to the National Housing Act.--Section 236(f) 
     of the National Housing Act (12 U.S.C. 1715z-1(f)) is 
     amended--
       (1) in paragraph (1), by striking the second sentence and 
     inserting the following: ``The rental charge for each 
     dwelling unit shall be at the basic rental charge, or such 
     greater amount, not to exceed the lesser of (i) the fair 
     market rental charge determined pursuant to this paragraph, 
     or (ii) the fair market rental established under section 8(c) 
     of the United States Housing Act of 1937 for existing housing 
     in the market area in which the 

[[Page S352]]
     housing is located, as represents 30 percent of the tenant's adjusted 
     income.''; and
       (2) by striking paragraph (6).

     SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANT ELIGIBLE 
                   ACTIVITIES.

       Notwithstanding the amendments made by section 907(b)(2) of 
     the Cranston-Gonzalez National Affordable Housing Act, 
     section 105(a)(25) of the Housing and Community Development 
     Act of 1974, as in existence on September 30, 1995, shall 
     apply to the use of assistance made available under title I 
     of the Housing and Community Development Act of 1974 during 
     fiscal year 1996.

     SEC. 4. EXTENSION OF RURAL HOUSING PROGRAMS.

       (a) Underserved Areas Set-Aside.--Section 509(f)(4)(A) of 
     the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is 
     amended--
       (1) in the first sentence, by striking ``fiscal years 1993 
     and 1994'' and inserting ``fiscal year 1996''; and
       (2) in the second sentence, by striking ``each''.
       (b) Rural Multifamily Rental Housing.--Section 515(b)(4) of 
     the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by 
     striking ``September 30, 1994'' and inserting ``September 30, 
     1996''.
       (c) Rural Rental Housing Funds for Nonprofit Entities.--The 
     first sentence of section 515(w)(1) of the Housing Act of 
     1949 (42 U.S.C. 1485(w)(1)) is amended by striking ``fiscal 
     years 1993 and 1994'' and inserting ``fiscal year 1996''.

     SEC. 5. EXTENSION OF FHA MORTGAGE INSURANCE PROGRAM FOR HOME 
                   EQUITY CONVERSION MORTGAGES.

       (a) Extension of Program.--The first sentence of section 
     255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
     amended by striking ``September 30, 1995'' and inserting 
     ``September 30, 1996''.
       (b) Limitation on Number of Mortgages.--The second sentence 
     of section 255(g) of the National Housing Act (12 U.S.C. 
     1715z-20(g)) is amended by striking ``25,000'' and inserting 
     ``30,000''.

     SEC. 6. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS.

       (a) Risk-Sharing Pilot Program.--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) Housing Finance Agency Pilot Program.--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. 7. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND 
                   AFFORDABLE HOUSING.

       Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 
     9816 note) is amended--
       (1) in subsection (a)--
       (A) by striking ``Initiative to develop'' and inserting the 
     following: ``Initiative--
       ``(1) to develop'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new paragraph:
       ``(2) for national or regional organizations or consortia, 
     including Habitat for Humanity International, that have 
     experience in providing or facilitating self-help housing 
     homeownership opportunities.'';
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) innovative homeownership opportunities for the 
     acquisition and rehabilitation of single family housing 
     through the provision of self-help housing, under which the 
     homeowner contributes a significant amount of sweat equity 
     toward the construction of the new dwelling; and''; and
       (3) by striking subsection (e) and inserting the following:
       ``(e) Authorization.--There are authorized to be 
     appropriated to carry out this section $50,000,000 for fiscal 
     year 1996, of which $25,000,000 shall be made available to 
     Habitat for Humanity International for activities under this 
     section.''.

     SEC. 8. THE NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOPMENT 
                   PROGRAM.

       Section 930(c) of the Housing and Community Development Act 
     of 1992 (Public Law 102-550, 106 Stat. 3887) is amended to 
     read as follows:
       ``(c) Authorization.--There are authorized to be 
     appropriated to carry out this section $10,000,000 for fiscal 
     year 1996.''.

     SEC. 9. AMENDMENTS TO THE UNITED STATES HOUSING ACT OF 1937 
                   FOR SAFETY AND SECURITY IN PUBLIC AND ASSISTED 
                   HOUSING.

       (a) Contract Provisions and Requirements.--Section 6 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437d) is 
     amended--
       (1) in subsection (k), by striking ``on or near such 
     premises'' and inserting ``on or off such premises''; and
       (2) in subsection (l)(5), by striking ``on or near such 
     premises'' and inserting ``on or off such premises''.
       (b) Availability of Criminal Records for Screening and 
     Eviction; Eviction for Drug-Related Activity.--Section 6 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437d) is 
     amended by adding at the end the following new subsections:
       ``(q) Availability of Records.--
       ``(1) In general.--
       ``(A) Provision of information.--Notwithstanding any other 
     provision of law, except as provided in subparagraph (B), the 
     National Crime Information Center, police departments, and 
     other law enforcement agencies shall, upon request, provide 
     information to public housing agencies regarding the criminal 
     conviction records of adult applicants for, or tenants of, 
     public housing for purposes of applicant screening, lease 
     enforcement, and eviction.
       ``(B) Exception.--Except as provided under any provision of 
     State, tribal, or local law, no law enforcement agency 
     described in subparagraph (A) shall provide information under 
     this paragraph relating to any criminal conviction if the 
     date of that conviction occurred 5 or more years prior to the 
     date on which the request for the information is made.
       ``(2) Opportunity to dispute.--Before an adverse action is 
     taken with regard to assistance under this title on the basis 
     of a criminal record, the public housing agency shall provide 
     the tenant or applicant with a copy of the criminal record 
     and an opportunity to dispute the accuracy and relevance of 
     that record.
       ``(3) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under paragraph (1).
       ``(4) Records management.--Each public housing agency shall 
     establish and implement a system of records management that 
     ensures that any criminal record received by the public 
     housing agency is--
       ``(A) maintained confidentially;
       ``(B) not misused or improperly disseminated; and
       ``(C) destroyed, once the purpose for which the record was 
     requested has been accomplished.
       ``(5) Definition.--For purposes of this subsection, the 
     term `adult' means a person who is 18 years of age or older, 
     or who has been convicted of a crime as an adult under any 
     Federal, State, or tribal law.
       ``(r) Eviction for Drug-Related Activity.--Any tenant 
     evicted from housing assisted under this title by reason of 
     drug-related criminal activity (as that term is defined in 
     section 8(f)(5)) shall not be eligible for housing assistance 
     under this title during the 3-year period beginning on the 
     date of such eviction, unless the evicted tenant successfully 
     completes a rehabilitation program approved by the public 
     housing agency (which shall include a waiver of this 
     subsection if the circumstances leading to eviction no longer 
     exist).''.
       (c) Limitation on Occupancy in Elderly and Disabled 
     Housing.--
       (1) In general.--Section 7 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437e) is amended by adding at the end the 
     following new subsection:
       ``(h) Limitation on Occupancy in Designated Projects.--
       ``(1) Occupancy limitation.--Notwithstanding any other 
     provision of law, a dwelling unit in a public housing project 
     (or portion of a project) that is designated under subsection 
     (a) shall not be occupied by any person whose illegal use (or 
     pattern of illegal use) of a controlled substance or abuse 
     (or pattern of abuse) of alcohol provides reasonable cause 
     for the public housing agency to believe that such occupancy 
     could interfere with the health, safety, or right to peaceful 
     enjoyment of the premises by the tenants of the public 
     housing project.
       ``(2) Required statement.--A public housing agency may not 
     make a dwelling unit in a public housing project (or portion 
     of a project) designated under subsection (a) available for 
     occupancy to any family, unless the application for occupancy 
     by that family is accompanied by a signed statement that no 
     person who will be occupying the unit illegally uses a 
     controlled substance, or abuses alcohol, in a manner that 
     would interfere with the health, safety, or right to peaceful 
     enjoyment of the premises by the tenants of the public 
     housing project.''.
       (2) Lease provisions.--Section 6(l) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) by redesignating paragraph (6) as paragraph (7); and
       (C) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) provide that any occupancy in violation of section 
     7(h)(1) or the furnishing of any false or misleading 
     information pursuant to section 7(h)(2) shall be cause for 
     termination of tenancy; and''.
       (d) Ineligibility of Illegal Drug Users and Alcohol Abusers 
     for Assisted Housing.--Section 16 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437n) is amended by adding at 
     the end the following new subsection:
       ``(e) Ineligibility of Illegal Drug Users and Alcohol 
     Abusers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a public housing agency shall establish standards for 
     occupancy in public housing dwelling units--
       ``(A) that prohibit occupancy in any such unit by any 
     person--
       ``(i) who the public housing agency determines is illegally 
     using a controlled substance; or
       ``(ii) if the public housing agency determines that it has 
     reasonable cause to believe 

[[Page S353]]
     that such person's illegal use (or pattern of illegal use) of a 
     controlled substance, or abuse (or pattern of abuse) of 
     alcohol, could interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by the tenants of the 
     public housing project; and
       ``(B) that allow the public housing agency to terminate the 
     tenancy in any public housing unit of any person--
       ``(i) if the public housing agency determines that such 
     person is illegally using a controlled substance; or
       ``(ii) whose illegal use of a controlled substance, or 
     whose abuse of alcohol, is determined by the public housing 
     agency to interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by the tenants of the 
     public housing project.
       ``(2) Inapplicability to indian housing.--This subsection 
     does not apply to any dwelling unit assisted by an Indian 
     housing authority.''.

     SEC. 10. ELIGIBLE HOME EQUITY CONVERSION MORTGAGES.

       Section 255(d)(3) of the National Housing Act (12 U.S.C. 
     1715z-20(d)(3)) is amended to read as follows:
       ``(3) be secured by a dwelling that is designed principally 
     for a 1- to 4-family residence in which the mortgagor 
     occupies 1 of the units;''.

     SEC. 11. APPLICABILITY.

       This Act and the amendments made by this Act shall be 
     construed to have become effective on October 1, 1995.

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