[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.
____________________