[Congressional Record Volume 142, Number 24 (Tuesday, February 27, 1996)]
[House]
[Pages H1267-H1278]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996

  Mr. LAZIO of New York. Mr. Speaker, I move to suspend the rules and 
pass the Senate bill (S. 1494) to provide an extension for fiscal year 
1996 for certain program administered by the Secretary of Housing and 
Urban Development and the Secretary of Agriculture, and for other 
purposes, as amended.
  The Clerk read 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.

       This Act may be cited as the ``Housing Opportunity Program 
     Extension Act of 1996''.

     SEC. 2. MULTIFAMILY HOUSING ASSISTANCE.

       (a) Section 8 Contract Renewal.--Notwithstanding section 
     405(b) of the Balanced Budget Downpayment Act, I (Public Law 
     104-99; 110 Stat. 44), at the request of the owner of any 
     project assisted under section 8(e)(2) of the United States 
     Housing Act of 1937 (as such section existed immediately 
     before October 1, 1991), the Secretary of Housing and Urban 
     Development may renew, for a period of 1 year, the contract 
     for assistance under such section for such project that 
     expires or terminates during fiscal year 1996 at current rent 
     levels.
     
[[Page H1268]]

       (b) Low-Income Housing Preservation.--
       (1) Use of amounts.--Notwithstanding any provision of the 
     Balanced Budget Downpayment Act, I (Public Law 104-99; 110 
     Stat. 26) or any other law, the Secretary shall use the 
     amounts described in paragraph (2) of this subsection under 
     the authority and conditions provided in the 2d undesignated 
     paragraph of the item relating to ``Housing Programs--annual 
     contributions for assisted housing'' in title II of the bill, 
     H.R. 2099 (104th Congress), as passed the House of 
     Representatives on December 7, 1995; except that for purposes 
     of this subsection, any reference in such undesignated 
     paragraph to March 1, 1996, shall be construed to refer to 
     April 15, 1996, any reference in such paragraph to July 1, 
     1996, shall be construed to refer to August 15, 1996, and any 
     reference in such paragraph to August 1, 1996, shall be 
     construed to refer to September 15, 1996.
       (2) Description of amounts.--Except as otherwise provided 
     in any future appropriation Act, the amounts described under 
     this paragraph are any amounts that--
       (A) are--
       (i) unreserved, unobligated amounts provided in an 
     appropriation Act enacted before the date of the enactment of 
     this Act;
       (ii) provided under the Balanced Budget Downpayment Act, I; 
     or
       (iii) provided in any appropriation Act enacted after the 
     date of the enactment of this Act; and
       (B) are provided for use in conjunction with properties 
     that are eligible for assistance under the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990 or the 
     Emergency Low Income Housing Preservation Act of 1987.

     SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANTS.

       (a) Direct Homeownership 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.
       (b) Increase in Cumulative Limit.--Section 108(k)(1)) of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5308(k)(1) is amended by striking ``$3,500,000,000'' and 
     inserting ``$4,500,000,000''.

     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 Non-Profit 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. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       (a) In General.--The provisions of section 5 of the bill, 
     H.R. 1691 (104th Congress), as passed the House of 
     Representatives on October 30, 1995, are hereby enacted into 
     law.
       (b) Technical Amendment.--Section 538 of the Housing Act of 
     1949 (as added by the amendment made pursuant to subsection 
     (a) of this section) is amended by striking ``Homesteading 
     and Neighborhood Restoration Act of 1995'' each place it 
     appears and inserting ``Housing Opportunity Program Extension 
     Act of 1996''.

     SEC. 6. 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, 1996'' and inserting 
     ``September 30, 2000''.
       (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 ``30,000'' and inserting 
     ``50,000''.
       (c) Eligible 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. 7. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED 
                   SECURITIES.

       Section 306(g)(2) of the Federal National Mortgage 
     Association Charter Act (12 U.S.C. 1721(g)(2)) is amended to 
     read as follows:
       ``(2) Notwithstanding any other provision of law and 
     subject only to the absence of qualified requests for 
     guarantees, to the authority provided in this subsection, and 
     to the extend of or in such amounts as any funding limitation 
     approved in appropriation Acts, the Association shall enter 
     into commitments to issue guarantees under this subsection in 
     an aggregate amount of $110,000,000,000 during fiscal year 
     1996. There are authorized to be appropriated to cover the 
     costs (as such term is defined in section 502 of the 
     Congressional Budget Act of 1974) of guarantees issued under 
     this Act by the Association such sums as may be necessary for 
     fiscal year 1996.''.

     SEC. 8. 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 
     12,000 units during fiscal year 1996''.

     SEC. 9. 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), in the matter following paragraph 
     (6)--
       (A) by striking ``on or near such premises'' and inserting 
     ``on or off such premises''; and
       (B) by striking ``criminal'' the first place it appears; 
     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.--Section 6 of the United States Housing Act of 1937 
     (42 U.S.C. 1437d) is amended by adding at the end the 
     following new subsection:
       ``(q) Availability of 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.--A law enforcement agency described in 
     subparagraph (A) shall provide information under this 
     paragraph relating to any criminal conviction of a juvenile 
     only to the extent that the release of such information is 
     authorized under the law of the applicable State, tribe, or 
     locality.
       ``(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.''
       (c) Ineligibility Because of Eviction for Drug-Related 
     Activity.--Section 6 of the United States Housing Act of 1937 
     is amended by adding after subsection (q) (as added by 
     subsection (b) of this section) the following new subsection:
       ``(r) Ineligibility Because of 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)) 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).''.
       (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--
       (1) in the section heading by striking ``income''; and
       (2) 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 and assistance 
     under section 8--
       ``(A) that prohibit occupancy in any public housing 
     dwelling unit by, and assistance under section 8 for, 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, may 

[[Page H1269]]
     interfere with the health, safety, or right to peaceful enjoyment of 
     the premises by other residents of the project; and
       ``(B) that allow the public housing agency to terminate the 
     tenancy in any public housing unit of, and the assistance 
     under section 8 for, any person--
       ``(i) who the public housing agency determines 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 other residents of the 
     project.
       ``(2) Consideration of rehabilitation.--In determining 
     whether, pursuant to paragraph (1), to deny occupancy or 
     assistance to any person based on a pattern of a controlled 
     substance or a pattern of abuse of alcohol, a public housing 
     agency may consider whether such person--
       ``(A) has successfully completed a supervised drug or 
     alcohol rehabilitation program (as applicable) and is no 
     longer engaging in the illegal use of a controlled substance 
     or abuse of alcohol (as applicable);
       ``(B) has otherwise been rehabilitated successfully and is 
     no longer in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable); or
       ``(C) is participating in a supervised drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable).
       ``(3) Inapplicability to indian housing.--This subsection 
     does not apply to any dwelling unit assisted by an Indian 
     housing authority.''.

     SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND DISABLED 
                   FAMILIES.

       (a) Authority for Designation.--Section 7 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437e) is amended to 
     read as follows:


         ``designated housing for elderly and disabled families

       ``Sec. 7. (a) Authority To Provide Designated Housing.--
       ``(1) In general.--Subject only to provisions of this 
     section and notwithstanding any other provision of law, a 
     public housing agency for which a plan under subsection (d) 
     is in effect may provide public housing projects (or portions 
     of projects) designated for occupancy by (A) only elderly 
     families, (B) only disabled families, or (C) elderly and 
     disabled families.
       ``(2) Priority for occupancy.--In determining priority for 
     admission to public housing projects (or portions of 
     projects) that are designated for occupancy as provided in 
     paragraph (1), the public housing agency may make units in 
     such projects (or portions) available only to the types of 
     families for whom the project is designated.
       ``(3) Eligibility of near-elderly families.--If a public 
     housing agency determines that there are insufficient numbers 
     of elderly families to fill all the units in a project (or 
     portion of a project) designated under paragraph (1) for 
     occupancy by only elderly families, the agency may provide 
     that near-elderly families may occupy dwelling units in the 
     project (or portion).
       ``(b) Standards Regarding Evictions.--Except as provided in 
     section 16(e)(1)(B), any tenant who is lawfully residing in a 
     dwelling unit in a public housing project may not be evicted 
     or otherwise required to vacate such unit because of the 
     designation of the project (or portion of a project) pursuant 
     to this section or because of any action taken by the 
     Secretary or any public housing agency pursuant to this 
     section.
       ``(c) Relocation Assistance.--A public housing agency that 
     designates any existing project or building, or portion 
     thereof, for occupancy as provided under subsection (a)(1) 
     shall provide, to each person and family who agrees to be 
     relocated in connection with such designation--
       ``(1) notice of the designation and an explanation of 
     available relocation benefits, as soon as is practicable for 
     the agency and the person or family;
       ``(2) access to comparable housing (including appropriate 
     services and design features), which may include tenant-based 
     rental assistance under section 8, at a rental rate paid by 
     the tenant that is comparable to that applicable to the unit 
     from which the person or family has vacated; and
       ``(3) payment of actual, reasonable moving expenses.
       ``(d) Required Plan.--A plan under this subsection for 
     designating a project (or portion of a project) for occupancy 
     under subsection (a)(1) is a plan, prepared by the public 
     housing agency for the project and submitted to the 
     Secretary, that--
       ``(1) establishes that the designation of the project is 
     necessary--
       ``(A) to achieve the housing goals for the jurisdiction 
     under the comprehensive housing affordability strategy under 
     section 105 of the Cranston-Gonzalez National Affordable 
     Housing Act; and
       ``(B) to meet the housing needs of the low-income 
     population of the jurisdiction; and ``(2) includes a 
     description of--
       ``(A) the project (or portion of a project) to be 
     designated;
       ``(B) the types of tenants for which the project is to be 
     designated;
       ``(C) any supportive services to be provided to tenants of 
     the designated project (or portion);
       ``(D) how the design and related facilities (as such term 
     is defined in section 202(d)(8) of the Housing Act of 1959) 
     of the project accommodate the special environmental needs of 
     the intended occupants; and
       ``(E) any plans to secure additional resources or housing 
     assistance to provide assistance to families that may have 
     been housed if occupancy in the project were not restricted 
     pursuant to this section.

     For purposes of this subsection, the term `supportive 
     services' means services designed to meet the special needs 
     of residents.
       ``(e) Review of Plans.--
       ``(1) Review and notification.--The Secretary shall conduct 
     a limited review of each plan under subsection (d) that is 
     submitted to the Secretary to ensure that the plan is 
     complete and complies with the requirements of subsection 
     (d). The Secretary shall notify each public housing agency 
     submitting a plan whether the plan complies with such 
     requirements not later than 60 days after receiving the plan. 
     If the Secretary does not notify the public housing agency, 
     as required under this paragraph or paragraph (2), the plan 
     shall be considered, for purposes of this section, to comply 
     with the requirements under subsection (d) and the Secretary 
     shall be considered to have notified the agency of such 
     compliance upon the expiration of such 60-day period.
       ``(2) Notice of reasons for determination of 
     noncompliance.--If the Secretary determines that a plan, as 
     submitted, does not comply with the requirements under 
     subsection (d), the Secretary shall specify in the notice 
     under paragraph (1) the reasons for the noncompliance and any 
     modifications necessary for the plan to meet such 
     requirements.
       ``(3) Standards for determination of noncompliance.--The 
     Secretary may determine that a plan does not comply with the 
     requirements under subsection (d) only if--
       ``(A) the plan is incomplete in significant matters 
     required under such subsection; or
       ``(B) there is evidence available to the Secretary that 
     challenges, in a substantial manner, any information provided 
     in the plan.
       ``(4) Treatment of existing plans.--Notwithstanding any 
     other provision of this section, a public housing agency 
     shall be considered to have submitted a plan under this 
     subsection if the agency has submitted to the Secretary an 
     application and allocation plan under this section (as in 
     effect before the date of the enactment of the Housing 
     Opportunity Program Extension Act of 1996) that have not been 
     approved or disapproved before such date of enactment.
       ``(f) Effectiveness.--
       ``(1) 5-year effectiveness of original plan.--A plan under 
     subsection (d) shall be in effect for purposes of this 
     section during the 5-year period that begins upon 
     notification under subsection (e)(1) of the public housing 
     agency that the plan complies with the requirements under 
     subsection (d).
       ``(2) Renewal of plan.--Upon the expiration of the 5-year 
     period under paragraph (1) or any 2-year period under this 
     paragraph, an agency may extend the effectiveness of the 
     designation and plan for an additional 2-year period (that 
     begins upon such expiration) by submitting to the Secretary 
     any information needed to update the plan. The Secretary may 
     not limit the number of times a public housing agency extends 
     the effectiveness of a designation and plan under this 
     paragraph.
       ``(3) Transition provision.--Any application and allocation 
     plan approved under this section (as in effect before the 
     date of the enactment of the Housing Opportunity Program 
     Extension Act of 1996) before such date of enactment shall be 
     considered to be a plan under subsection (d) that is in 
     effect for purposes of this section for the 5-year period 
     beginning upon such approval.
       ``(g) Inapplicability of Uniform Relocation Assistance and 
     Real Property Acquisitions Policy Act of 1970.--No tenant of 
     a public housing project shall be considered to be displaced 
     for purposes of the Uniform Relocation Assistance and Real 
     Property Acquisitions Policy Act of 1970 because of the 
     designation of any existing project or building, or portion 
     thereof, for occupancy as provided under subsection (a) of 
     this section.
       ``(h) Inapplicability to Indian Housing.--The provisions of 
     this section shall not apply with respect to low-income 
     housing developed or operated pursuant to a contract between 
     the Secretary and an Indian housing authority.''.
       ``(b) Authorization of Appropriations for Implementation of 
     Allocation Plans.--There are authorized to be appropriated 
     for fiscal year 1996 such sums as may be necessary for rental 
     subsidy contracts under the existing housing certificate and 
     housing voucher programs under section 8 of the United States 
     Housing Act of 1937 for public housing agencies to implement 
     allocations plans for designated housing under section 7 of 
     such Act that are approved by the Secretary of Housing and 
     Urban Development.

     SEC. 11. ASSISTANCE FOR HABITAT FOR HUMANITY AND OTHER SELF-
                   HELP HOUSING PROVIDERS.

       ``(a) Grant Authority.--The Secretary of Housing and Urban 
     Development may, to the extent amounts are available to carry 
     out this section and the requirements of this section are 
     met, make grants for use in accordance with this section to--
       (1) Habitat for Humanity International, whose 
     organizational headquarters are located in Americus, Georgia; 
     and
       (2) other national or regional organizations or consortia 
     that have experience in providing or facilitating self-help 
     housing homeownership opportunities.
       (b) Goals and Accountability.--In making grants under this 
     section, the Secretary 

[[Page H1270]]
     shall take such actions as may be necessary to ensure that--
       (1) assistance provided under this section is used to 
     facilitate and encourage innovative homeownership 
     opportunities 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;
       (2) assistance provided under this section for land 
     acquisition and infrastructure development results in the 
     development of not less than 4,000 new dwellings;
       (3) the dwellings constructed in connection with assistance 
     provided under this section are quality dwellings that comply 
     with local building and safety codes and standards and are 
     available at prices below the prevailing market prices;
       (4) the provision of assistance under this section 
     establishes and fosters a partnership between the Federal 
     Government and Habitat for Humanity International, its 
     affiliates, and other organizations and consortia, resulting 
     in efficient development of affordable housing with minimal 
     governmental intervention, limited governmental regulation, 
     and significant involvement by private entities;
       (5) activities to develop housing assisted pursuant to this 
     section involve community participation similar to the 
     homeownership program carried out by Habitat for Humanity 
     International, in which volunteers assist in the construction 
     of dwellings; and
       (6) dwellings are developed in connection with assistance 
     under this section on a geographically diverse basis, which 
     includes areas having high housing costs, rural areas, and 
     areas underserved by other homeownership opportunities that 
     are populated by low-income families unable to otherwise 
     afford housing.

     If, at any time, the Secretary determines that the goals 
     under this subsection cannot be met by providing assistance 
     in accordance with the terms of this section, the Secretary 
     shall immediately notify the applicable Committees in writing 
     of such determination and any proposed changes for such goals 
     or this section.
       (c) Allocation.--Of any amounts available for grants under 
     this section--
       (1) 62.5 percent shall be used for a grant to the 
     organization specified in subsection (a)(1); and
       (2) 37.5 percent shall be used for grants to organizations 
     and consortia under subsection (a)(2).
       (d) Use.--
       (1) Purpose.--Amounts from grants made under this section, 
     including any recaptured amounts, shall be used only for 
     eligible expenses in connection with developing new decent, 
     safe, and sanitary nonluxury dwellings in the United States 
     for families and persons who otherwise would be unable to 
     afford to purchase a dwelling.
       (2) Eligible expenses.--For purposes of paragraph (1), the 
     term ``eligible expenses'' means costs only for the following 
     activities:
       (A) Land acquisition.--Acquiring land (including financing 
     and closing costs).
       (B) Infrastructure improvement.--Installing, extending, 
     constructing, rehabilitating, or otherwise improving 
     utilities and other infrastructure.

     Such term does not include any costs for the rehabilitation, 
     improvement, or construction of dwellings.
       (e) Establishment of Grant Fund.--
       (1) In general.--Any amounts from any grant made under this 
     section shall be deposited by the grantee organization or 
     consortium in a fund that is established by such organization 
     or consortium for such amounts, administered by such 
     organization or consortium, and available for use only for 
     the purposes under subsection (d). Any interest, fees, or 
     other earnings of the fund shall be deposited in the fund and 
     shall be considered grant amounts for purposes of this 
     section.
       (2) Assistance to habitat for humanity affiliates.--Habitat 
     for Humanity International may use amounts in the fund 
     established for such organization pursuant to paragraph (1) 
     for the purposes under subsection (d) by providing assistance 
     from the fund to local affiliates of such organization.
       (f) Requirements for assistance to other Organizations.--
     The Secretary may make a grant to an organization or 
     consortium under subsection (a)(2) only pursuant to--
       (1) an expression of interest by such organization or 
     consortia to the Secretary for a grant for such purposes;
       (2) a determination by the Secretary that the organization 
     or consortia has the capability and has obtained financial 
     commitments (or has the capacity to obtain financial 
     commitments) necessary to--
       (A) develop not less than 30 dwellings in connection with 
     the grant amounts; and
       (B) otherwise comply with a grant agreement under 
     subsection (i); and
       (3) a grant agreement entered into under subsection (i).
       (g) Treatment of Unused Amounts.--Upon the expiration of 
     the 6-month period beginning upon the Secretary first 
     providing notice of the availability of amounts for grants 
     under subsection (a)(2), the Secretary shall determine 
     whether the amount remaining from the aggregate amount 
     reserved under subsection (c)(2) exceeds the amount needed to 
     provide funding in connection with any expressions of 
     interest under subsection (f)(1) made by such date that are 
     likely to result in grant agreements under subsection (i). If 
     the Secretary determines that such excess amounts remain, the 
     Secretary shall provide the excess amounts to habitat for 
     Humanity International by making a grant to such organization 
     in accordance with this section.
       (h) Geographical Diversity.--In using grant amounts 
     provided under subsection (a)(1), Habitat for Humanity 
     International shall ensure that the amounts are used in a 
     manner that results in national geographic diversity among 
     housing developed using such amounts. In making grants under 
     subsection (a)(2), the Secretary shall ensure that grants are 
     provided and grant amounts are used in a manner that results 
     in national geographic diversity among housing developed 
     using grant amounts under this section.
       (i) Grant Agreement.--A grant under this section shall be 
     made only pursuant to a grant agreement entered into by the 
     Secretary and the organization or consortia receiving the 
     grant, which shall--
       (1) require such organization or consortia to use grant 
     amounts only as provided in this section;
       (2) provide for the organization or consortia to develop a 
     specific and reasonable number of dwellings using the grant 
     amounts, which number shall be established taking into 
     consideration costs and economic conditions in the areas in 
     which the dwellings will be developed, but in no case shall 
     be less than 30;
       (3) require the organization or consortia to use the grant 
     amounts in a manner that leverages other sources of funding 
     (other than grants under this section), including private or 
     public funds, in developing the dwellings;
       (4) require the organization or consortia to comply with 
     the other provisions of this section;
       (5) provide that if the organization or consortia has not 
     used any grant amounts within 24 months after such amounts 
     are first disbursed to the organization or consortia, the 
     Secretary shall recapture such unused amounts; and
       (6) contain such other terms as the Secretary may require 
     to provide for compliance with subsection (b) and the 
     requirements of this section.
       (j) Fulfillment of Grant Agreement.--If the Secretary 
     determines that an organization or consortia awarded a grant 
     under this section has not, within 24 months after grant 
     amounts are first made available to the organization or 
     consortia, substantially fulfilled the obligations under the 
     grant agreement, including development of the appropriate 
     number of dwellings under the agreement, the Secretary shall 
     use any such undisbursed amounts remaining from such grant 
     for other grants in accordance with this section.
       (k) Records and Audits.--During the period beginning upon 
     the making of a grant under this section and ending upon 
     close-out of the grant under subsection (l)--
       (1) the organization awarded the grant under subsection 
     (a)(1) or (a)(2) shall keep such records and adopt such 
     administrative practices as the Secretary may require to 
     ensure compliance with the provisions of this section and the 
     grant agreement; and
       (2) the Secretary and the Comptroller General of the United 
     States, and any of their duly authorized representatives, 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records of the grantee 
     organization or consortia and its affiliates that are 
     pertinent to the grant made under this section.
       (l) Close-Out.--The Secretary shall close out a grant made 
     under this section upon determining that the aggregate amount 
     of any assistance provided from the fund established under 
     subsection (e)(1) by the grantee organization or consortium 
     exceeds the amount of the grant. For purposes of this 
     paragraph, any interest, fees, and other earnings of the fund 
     shall be excluded from the amount of the grant.
       (m) Environmental Review.--A grant under this section shall 
     be considered to be funds for a special project for purposes 
     of section 305(c) of the Multifamily Housing Property 
     Disposition Reform Act of 1994.
       (n) Report to Congress.--Not later than 90 days after 
     close-out of all grants under this section is completed, the 
     Secretary shall submit a report to the applicable Committees 
     describing the grants made under this section, the grantees, 
     the housing developed in connection with the grant amounts, 
     and the purposes for which the grant amounts were used.
       (o) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Applicable committees.--The term ``applicable 
     Committees'' means the Committee on Banking and Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (3) United states.--The term ``United States'' includes the 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, Guam, the Virgin Islands, American Samoa, 
     and any other territory or possession of the United States.
       (p) Regulations.--The Secretary shall issue any final 
     regulations necessary to carry out this section not later 
     than 30 days after the date of the enactment of this Act. The 
     regulations shall take effect upon issuance and may not 
     exceed, in length, 5 full pages in the Federal Register.
     
[[Page H1271]]


     SEC. 12. FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL 
                   CITIES IN SCHOOLS COMMUNITY DEVELOPMENT 
                   PROGRAM, AND CAPACITY BUILDING THROUGH NATIONAL 
                   COMMUNITY DEVELOPMENT INITIATIVE.

       (a) Authority To Use Assisted Housing Amounts.--To the 
     extent and for the purposes specified in subsection (b), the 
     Secretary of Housing and Urban Development may use amounts in 
     the account of the Department of Housing and Urban 
     Development known as the Annual Contributions for Assisted 
     Housing account, but only such amounts which--
       (1) have been appropriated for a fiscal year that occurs 
     before the fiscal year for which the Secretary uses the 
     amounts; and
       (2) have been obligated before becoming available for use 
     under this section.
       (b) Fiscal Year 1996.--Of the amounts described in 
     subsection (a), $60,000,000 shall be available to the 
     Secretary of Housing and Urban Development for fiscal year 
     1996 in the following amounts for the following purposes:
       (1) Self-help housing assistance.--$40,000,000 for carrying 
     out section 11 of this Act.
       (2) National cities in schools community development 
     program.--$10,000,000 for carrying out section 930 of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3887).
       (3) Capacity building through national community 
     development initiative.--$10,000,000 for carrying out section 
     4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note).

     SEC. 13. APPLICABILITY AND IMPLEMENTATION.

       (a) Applicability.--This Act and the amendments made by 
     this Act shall be construed to have become effective on 
     October 1, 1995.
       (b) Implementation.--The amendments made by sections 9 and 
     10 shall apply as provided in subsection (a) of this section, 
     notwithstanding the effective date of any regulations issued 
     by the Secretary of Housing and Urban Development to 
     implement such amendments or any failure by the Secretary to 
     issue any such regulations.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York [Mr. Lazio] and the gentleman from Massachusetts [Mr. Kennedy] 
will each be recognized for 20 minutes.
  The Chair recognizes the gentleman from New York [Mr. Lazio].
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Let me begin by thanking my friend and colleague, the ranking member 
of the Subcommittee on Housing and Community Opportunity, the gentleman 
from Massachusetts [Mr. Kennedy], for his cooperation and work in 
trying to bring these extenders to the floor.
  Mr. Speaker, S. 1494, the Housing Opportunity Program Extension Act 
of 1996, is an important bill and, with the amendment being offered by 
the Banking Committee, will avoid inappropriate and unnecessary 
hardship.
  The Senate passed this legislation on January 24, 1996, to provide 
guidance to the administration and extend programs left in question 
following President Clinton's veto of H.R. 2099, the VA-HUD and 
Independent Agencies Appropriations Act. Although the Senate 
initiatives are well intentioned, it is important that the legislation 
address initiatives that the House has already passed earlier in this 
Congress. S. 1494 includes provisions similar to those included in H.R. 
117, which passed on October 24, 1995, with a recorded vote of 415 to 
0. Other provisions of S. 1494 incorporate initiatives from H.R. 1691 
passed by voice vote under suspension just 6 days later.
  Our amendment to S. 1494 recognizes the efforts of several Members of 
this House, such as Congressman Blute and Congressman Ney, whose hard 
work on H.R. 117 helped bring about stronger protection for older 
Americans in our Nation's public housing system.
  In his State of the Union Address, the President said he would like 
to see a one-strike-and-you're-out policy against violent criminals in 
public housing. While we appreciate his leadership, this bill makes 
clear that we shouldn't have to wait until there has been an attack on 
a senior citizen or defenseless family. We should take steps to protect 
seniors before criminals are allowed into public housing. Criminals 
shouldn't even get up to bat, let alone be able to take a swing and 
strike out. Simply calling a criminal out after one strike means that 
there has been one more innocent victim to crime and violence in public 
housing. Like H.R. 117, this amendment enables housing authorities to 
designate facilities as ``elderly only'' and prohibit occupancy by 
individuals who are disabled solely because of alcohol or drug abuse.

  The amendment also includes another important initiative from H.R. 
117 reauthorizing the very successful Home Equity Conversion Mortgage 
Program, which allows seniors to hold on to their homes and stay in 
their neighborhoods. Our amendment increases the number of HECM loans 
available to older Americans from 30,000 to 50,000 through the year 
2000.
  As amended, this bill reauthorizes the section 515 rural multifamily 
housing program, a crucial tool for rural communities to house needy 
families. Though this program received funds through the Agriculture 
Appropriations Act of fiscal year 1996, its authorization has expired. 
This bill allows the money, which has already been appropriated, to be 
spent for low-income rural families.
  Under our amendment we also add a new, innovative rural rental loan 
guarantee program authored by the vice chairman of the Housing 
Subcommittee, Mr. Bereuter, and included H.R. 1691. This program has 
also received an appropriation but cannot operate without 
authorization. It is an example of the direction we as a government 
should be going--providing housing loans in partnership with the 
private sector, rather than direct loans.
  I am well aware of concerns that my distinguished friend from 
Illinois, Congressman Durbin, has raised with regard to reforming the 
section 515 program. We all share his concern that the use of Federal 
dollars should be carefully scrutinized. I applaud the Department of 
Agriculture's efforts with regard to reforms in section 515 even absent 
legislation. I assure the Members that any unresolved issues will be 
dealt with once the Senate has held hearings and debated the matter. I 
am comfortable authorizing this program for the balance of fiscal year 
1996 because of USDA's efforts and because this program is crucial to 
thousands of low-income families in rural areas who need housing now.
  This amendment also changes the Senate bill to support Habitat for 
Humanity's tremendously successful self-help volunteer housing program. 
As originally included in H.R. 1691, Habitat will receive a 
reprogramming of previously appropriated HUD funds for land acquisition 
and infrastructure needs to support low-income homeownership. This 
amendment supports Habitat and other self-help housing entities to do 
their work more effectively and still maintain the essential character 
of their initiatives.
  The House amendment extends Housing Finance Agency Risk-Sharing Pilot 
Program to 2,000 more units than the Senate's 10,000 and also extends 
risk-sharing programs with Government sponsored enterprises.
  The amendment gives the Secretary of HUD the discretion to renew 
section 8 moderate rehabilitation contracts as they expire and provides 
better guidance to the Secretary to operate low-income housing 
preservation programs as included in H.R. 2099. Although the most 
recent continuing resolution, H.R. 2088, the Balanced Budget 
Downpayment Act, provides generally the Government National Mortgage 
Association pay commitment authority through March 15, 1996, the 
committee believes that it is more fiscally responsible to our Nation's 
homeowners to allow GNMA to operate throughout the fiscal year of 1996. 
The GNMA secondary market function is an integral part of the FHA 
program.
  Without this consistency, it is possible that GNMA may be unable to 
assist the single family housing markets, particularly for first-time 
home buyers throughout our Nation. S. 1494 reauthorizes the community 
development home ownership assistance program, encouraging local 
governments to develop their own communities.
  Mr. Speaker, this legislation and the House amendment was crafted in 
a bipartisan fashion. I urge my colleagues to support both the 
amendment and the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, first of all, I want to thank my good friend, the 
gentleman from New York [Mr. Lazio], for the efforts that he has made 
in trying to 

[[Page H1272]]
achieve a reasonable sense of balance in terms of extending the 
authorizations on a number of programs that do a great deal of public 
good in terms of public housing policy. I appreciate the efforts that 
he made in taking care of some of the concerns that we had on the 
Democratic side. I think that his efforts, in particular, with regard 
to the preservation program, which is an enormously important program 
affecting literally hundreds of thousands of low-income tenants that 
without, I believe, Mr. Lazio's efforts in particular, could have 
suffered a very, very difficult fate in terms of being thrown out of 
their apartments as a result of some shortsighted legislation that was 
passed decades ago that gave landlords the capability of removing 
lower-income tenants from those buildings once a 20- or 30-year period 
had passed. Without Mr. Lazio's individual leadership, I do not think 
we would have secured the funding that we needed. I very much 
appreciate the efforts that he made.
  I also want to commend the portions of this legislation that Members 
on both sides of the aisle, the gentleman from Virginia, Mr. Moran, the 
gentlemen from Massachusetts, Mr. Blute and Mr. Frank, and others have 
made in terms of making certain that we have public housing that 
protects people from drug dealers and others that have disrupted 
particularly senior public housing from the protections that they need.
  We also have provisions in this legislation that continues innovative 
and creative programs such as the community development block grant 
home ownership program and the expanded economic development loan 
authority which is a very creative loan program using CDBG funds over 
the long term to provide much-needed affordable housing.
  As we have seen the affordable housing budget in this country be 
dramatically reduced, it becomes more and more important that we allow 
community development corporations, a range of nonprofit builders and 
others to use the innovative and creative mechanisms that the 
financiers have come up with to fill the void that has been created.
  I think that Mr. Lazio is making an effort to try to achieve that. 
There are a number of circumstances where I think we have not gone far 
enough. I would like to mention a couple of those programs.
  First, we need to make certain rent reforms, certain rent reforms so 
that moderate-income tenants can stay in preservation projects. 
Existing law has the unintended effect of charging these tenants rents 
that are higher than what they could get in apartments across the 
street. HUD is aware of the problem and agrees it has got to be solved. 
I hope we could get a commitment from the gentleman from New York [Mr. 
Lazio] to be able to work on that in some other piece of legislation 
that might come up shortly.
  Mr. LAZIO of New York. Mr. Speaker, will the gentleman yield?
  Mr. KENNEDY of Massachusetts. I yield to the gentleman from New York.
  Mr. LAZIO of New York. Mr. Speaker, I know the gentleman has been in 
communication with the staff on this and with myself, and I appreciate 
his advocacy efforts on behalf of low-income, moderate-income people. 
We will be working with the gentleman to try and meet the concerns that 
he has.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, the second issue would be 
also seeking a small change in the preservation law to allow landlords 
of State-financed projects who have prepaid their Federal mortgages to 
try to get back into the program if they choose. I am afraid that a 
number of such owners have already prepaid those mortgages when it was 
unclear that any funds would become available. In other words, prior to 
the time that Mr. Lazio made the efforts to actually get this program 
funded, a number of landlords prepaid. Those tenants are very much at 
risk and there are a number of tenants that exist in my own district 
and around other States that are facing imminent displacement and being 
thrown out of their homes.
  If we could take care of that, I know that the gentleman tried very 
hard and we ran into problems on the Senate side. If the gentleman 
could briefly indicate that this would be something that he would 
support as well.
  Mr. LAZIO of New York. Mr. Speaker, if the gentleman will continue to 
yield, I would say that again I appreciate the gentleman's concerns on 
this. We have been working with the department, HUD, and with the 
Senate to try and come up with some solution that would be agreeable to 
all parties. We will continue to work with the gentleman on this issue.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I thank the gentleman very 
much.
  I want to say to my good friend, the gentleman from Illinois, Mr. 
Durbin, that I am very sorry that Mr. Lazio was unable, although he 
tried to accommodate the concerns that Mr. Durbin has raised very 
effectively in his role on the Committee on Appropriations with regard 
to the 515 rural housing program. It is a program that has been rife 
with problems, rip-offs, and troubles that Mr. Durbin has done a 
tremendous amount of work in trying to reform. Those reforms have been 
included in legislation that this House has accepted in times past. Yet 
for some reason that I cannot understand, they were excluded from this 
bill.
  It makes no sense. I understand that the gentleman from Illinois [Mr. 
Durbin] is going to have more to say about his opposition to this bill 
as a result of the fact that those reforms were not included.
  Again, I think that the overall importance of many of the programs 
that are being reauthorized is overwhelmingly in favor of this bill. I 
appreciate again the efforts that the gentleman has made. I want to 
thank the gentleman and the members of his staff and the members of our 
staff as well for the efforts that they have made.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I want to again thank the gentleman from Massachusetts 
[Mr. Kennedy] for his kind remarks and for his cooperation on this.
  I include for the Record, Mr. Speaker, a section-by-section analysis 
regarding S. 1494, as amended:

       S. 1494 Housing Opportunity Program Extension Act of 1995


   Section-by-Section Analysis of House Amendment in the Nature of a 
                         Substitute to S. 1494

     Sec. 1. Title: Housing Opportunity Program Extension Act of 
         1995
     Sec. 2. Multifamily housing assistance
       (a) Provides discretionary authority to the HUD Secretary 
     to renew, for one year, expiring Sec. 8 moderate 
     rehabilitation project-based rental assistance contracts.
       (b) Provides discretionary authority to the HUD Secretary 
     to operate the preservation program as passed the House in 
     title II of H.R. 2099 (VA/HUD Appropriations Conference Bill) 
     on December 7, 1995.
     Sec. 3. Community development block grant eligible activities
       (a) Amends Sec. 907(b)(2) of the Cranston-Gonzalez National 
     Affordable Housing Act by extending as an eligible activity, 
     homeownership programs under CDBG.
       (b) Replace Section 108 Loan Guarantee Aggregate Limit. In 
     addition to the annual loan limitations for the section 108 
     loan guarantee program set forth in appropriations Acts, 
     current law places an aggregate limit on the cumulative 
     amount of outstanding loans extended under the section 108 
     program. This limit is $3.5 billion. The Department will soon 
     hit this limitation. Hence, this provision would increase the 
     aggregate loan limit to $4.5 billion. This provision does not 
     alter the annual loan limitations set forth in Appropriations 
     Acts.
     Sec. 4. Extension of rural housing programs
       Authorizes a rural rental multifamily housing direct loan 
     program (Sec. 515 of the Housing Act of 1949) and extends 
     set-asides within the Sec. 515 program for nonprofit sponsors 
     and underserved areas; this program's previously appropriated 
     funds, provided through the enacted Agriculture 
     Appropriations Act of FY 96, are contingent on authorization.
     Sec. 5. Loan guarantees for multifamily rental housing in 
         rural areas
       Authorizes a rural rental multifamily housing loan 
     guarantee program, as contained in H.R. 1691, which the House 
     passed on October 30, 1995; this program's previously 
     appropriated funds, provided through the enacted Agriculture 
     Appropriations Act of FY 96, are contingent on authorization.
     Sec. 6. Extension of FHA mortgage insurance program for home 
         equity conversion mortgages
       Authorizes and extends the HECM program through September 
     30, 2000, as passed by the House through H.R. 117 on October 
     24, 1995; increases the mortgage insurance authority to a 
     maximum of 50,000 units; and, extends eligibility to 1-4 
     family owner-occupied units.
     
[[Page H1273]]

     Sec. 7. GNMA guarantees of mortgage-backed securities
       Amends Sec. 306(g)(2) of the National Housing Act by 
     providing an authorization of commitment authority to the 
     Government National Mortgage Association (GNMA) at $110 
     billion for FY 96.
     Sec. 8. Extension of multifamily housing finance programs
       Amends Sec. 542(b)(5) of the Housing and Community 
     Development Act of 1992 by extending the FHA multifamily 
     mortgage insurance risk-sharing demonstration through FY 96 
     and provides authority to insure, under the demonstration, up 
     to 7,500 units. Additionally, Sec. 542(c)(4) of HCDA of 1992 
     is amended by providing authority to the Housing Finance 
     Agencies to enter FHA risk-sharing agreements up to 12,000 
     units.
     Sec. 9. Safety and security in public and assisted housing
       Amends Sec. 6 of the U.S. Housing Act of 1937 to require 
     housing authorities to provide occupancy standards and an 
     expedited grievance procedure for the eviction of tenants, in 
     public housing and other assisted projects, who have a 
     pattern of drug or alcohol abuse.
     Sec. 10. Public housing designated for elderly and disabled 
         families
       Amends Sec. 7 of the U.S. Housing Act of 1937 to streamline 
     procedures for public housing authorities to designate public 
     housing facilities as ``elderly only'', ``disabled only,'' or 
     ``elderly and disabled families only.'' Additionally, this 
     provision provides authority to evict residents in these 
     designated facilities whose pattern of drug and alcohol abuse 
     would jeopardize the safety and security of the elderly and 
     disabled residents. Authorizes such sums as may be 
     appropriated for FY 96 for public housing agencies to 
     implement plans approved by the Secretary for designated 
     housing.
     Sec. 11. Assistance for habitat for humanity and other self-
         help housing providers
       Incorporates H.R. 1691, Sec. 2, which passed the House on 
     October 30, 1995 by providing for a self-help housing program 
     for HUD to provide grants to capable non-profit 
     organizations, including Habitat-for-Humanity. Grant funds 
     must be used for the payment of land and infrastructure costs 
     of single family structures built entirely with donations and 
     contributions of products, volunteer labor and the 
     prospective borrower's sweat equity.
     Sec. 12. Funding for self-help housing assistance, national 
         cities in schools community development program, and 
         capacity building through national community development 
         initiative
       Provides authority to use $60 million in appropriation 
     amounts from previous fiscal years to fund (1) self-help 
     housing (Sec. 9) at $40 million (Habitat-for-Humanity at $25 
     million and other Self-Help Housing Groups at $15 million), 
     (2) National Cities in Schools Communities at $10 million, 
     and (3) Capacity Building through the National Community 
     Development Initiative (Sec. 4 of the HUD Demonstration Act 
     of 1993) at $10 million.
     Sec. 13. Applicability
       Construes effectiveness as of October 1, 1995 and makes 
     sections 9 and 10 of this Act self-executing.

  Mr. Speaker, I yield 1 minute to my distinguished colleague, the 
gentleman from California [Mr. Dreier], a member of the Committee on 
Rules and one of our great legislative thinkers.
  Mr. DREIER. Mr. Speaker, I thank the distinguished chairman of the 
subcommittee for yielding, and I would simply rise and congratulate him 
and the gentleman from Iowa [Mr. Leach], and others who have played a 
key role in this legislation.
  Mr. Speaker, this is a very important day because it marks another 
success for a concept that Speaker Gingrich put forward early on in 
this Congress, that being the establishment of Corrections Day. We know 
that there are a great many laws and regulations which are absolutely 
preposterous, and Speaker Gingrich offered the proposal to establish a 
Corrections Day, and so far we have, out of this House, passed 11 items 
under the Corrections Day Calendar. Four have passed both the House and 
Senate and become public law. If the Senate agrees with this measure 
that is before us, it will be the fifth, and I believe that we have 
been able to work with our Corrections Day Advisory Group in a 
bipartisan way, and that is very, very great testimony to the effort 
that has come from both Democrats and Republicans in dealing with this 
question.
  Obviously the issue that has been addressed here is one that has been 
very near and dear to me. Six years ago I introduced legislation 
dealing with the issue of drug dealers and public housing, and this 
specifically goes at the question of the elderly and those who have 
been tragically victimized, and I believe that the entire package that 
has been brought forward here will go a long way toward addressing that 
and other major concerns, and I would simply like to congratulate the 
subcommittee and the gentleman from New York, Chairman Lazio and the 
gentleman from Massachusetts, Mr. Kennedy, the ranking member, and 
others who have been involved in this and look forward to another great 
Corrections Day success here.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 6 minutes to the 
gentleman from Illinois [Mr. Durbin].
  Mr. DURBIN. Mr. Speaker, public housing and the public financed 
housing is an important part of the life of many American families. In 
Chicago and in the State of Illinois I have become more closely 
acquainted with the challenges facing us, not only in the housing, but 
also in our responsibility as landlords in public housing.
  Mr. Speaker, this is a good bill. Most of the bill I think is very 
positive, and I salute the gentleman from New York for bringing it to 
the floor. But I would, at the same time, suggest to all of my 
colleagues, having said that, that they should vote against this bill, 
and the reason they should vote against it is very simple.
  There is one section of this bill, one section of this bill, which is 
shameful. In 1994, the appropriations subcommittee which I chaired sent 
congressional investigators across the country to examine reported 
abuses in a housing program known as section 515. This is a program 
where the Federal Government literally creates inducements for 
developers to build multifamily housing in rural areas and, let me add, 
rural areas could be the suburbs of major cities under the definitions 
of this bill. They are literally across the United States, and at this 
time under section 515 there are 16,700 projects and over 440,000 
units. This is a big program, and when the investigators took a look at 
it, they found the administration of this program under existing law is 
nothing short of scandalous, scandalous in the following respects;
  We are building these units where they are not needed. Developers 
come in with political and financial clout and roll the Department of 
Agriculture into forcing the construction of units where they want to 
build them. Many times we know as soon as the first shovel hits the 
ground that building is going to fail and the taxpayers are going to 
end up holding the bag, but we are stuck with it because of the current 
law.
  And then you know what happens? We find out that when the project 
fails a lot of the owners like to transfer the project to some other 
owner. You know what happens in the process? Uncle Sam does not get 
paid. The taxpayers lose. There is a default.
  In our investigation we found in 47 different properties and several 
States taxpayers lost over $10.5 million because the money was 
transferred, the loan was transferred, and the remaining corporation 
was judgment proof, taxpayers left holding the bag, another element in 
the scandal.

  And that is not all. Let me tell you this is a very lucrative deal 
for developers. You know what percentage interest we pay on our home 
mortgage; what is it 9 percent, 10, 12? You know what they pay to build 
these buildings at taxpayer expense? One percent mortgages. What a 
deal. And then we give them a wonderful tax credit to boot.
  So these developers have a cash cow to build buildings where they are 
not needed and, when they default on them, to leave Uncle Sam and the 
taxpayers holding the bag.
  We verified this State after State, all across the Nation, presented 
it to the Committee on Banking and Financial Services and to the 
Subcommittee on Housing and Financial Services and said clean up this 
mess. At a time when we are cutting spending for education, when we are 
cutting spending on Medicare, how can we justify wasting millions of 
dollars on this boondoggle?
  Do you know what the Subcommittee on Housing and Financial Services 
said to the Committee on Appropriations? You are right. You are right. 
We need to change the law. And they did. And they brought it in. And we 
passed it with an overwhelming vote. And we were moving in the right 
direction to clean up the program, provide the housing.
  But guess what happens today? Along comes the bill and reauthorizes 
the old program. This bums out again. They are going to be out there 
with the developers running taxpayers around the 

[[Page H1274]]
track with wasteful projects wasting our tax dollars because of this 
bill.
  I say to the gentleman from New York, he was right the first time. 
The reforms were needed. Why did he surrender? Why did he give up? How 
can he justify in this day and age with this deficit walking away from 
reforms? How can he justify asking the taxpayers to hold the bag so 
that developers would come in and scam us again and again and again? 
His bill has a notable deficiency here, and I yield to my friend from 
New York.
  Mr. LAZIO of New York. Mr. Speaker, will the gentleman yield?
  Mr. DURBIN. I yield to the gentleman from New York.
  Mr. LAZIO of New York. Mr. Speaker, I appreciate the courtesy of the 
gentleman.
  Let me respond if I can, first, by expressing great sympathy for the 
gentleman's frustration. Obviously I share the same perspective that he 
has because I have helped shepherd this legislation to the floor and 
move it through the House. If we were dealing with only a House-passed 
version and did not have to deal with the other body, we would have no 
problem, the reforms would be in place.
  Mr. DURBIN. Can I say to my friend from New York thank you, but I do 
not want your sympathy. I would like to see the reform. I really think 
at a time when taxpayers are being told that we are going to mind their 
dollars carefully, that we are doing to tighten the belt here, we are 
not going to let people rip off things. There is no excuse by saying 
the Senate does not like our reforms. That is not good enough.
  I mean the bottom line is we are going to lose millions of dollars, 
folks. This is a mini-mini version of a savings and loan scandal where 
taxpayers end up holding the bag when these properties fail, and this 
bill allows it to continue.
  But I say to my colleagues in the House, for all of the things in the 
bill, defeat it today because a section 515 scandal will continue. We 
will see it on ``60 Minutes.'' We will see it on ``20/20.'' We will see 
it on ``Prime Time.'' And after this speech it is not good enough to 
say, oh, I did not know it was in there. It is in there, the section 
515 scandal is in there, and unless the gentleman from New York [Mr. 
Lazio] puts the reforms in place to clean it up taxpayers are going to 
be left holding the bag.
  Vote ``no'' on this bill.
  Mr. LAZIO of New York. Mr. Speaker, I yield 2 minutes to the 
gentleman from Massachusetts [Mr. Blute] who was a wonderful advocate 
of section 117 and of all seniors throughout the Nation.
  Mr. BLUTE. Mr. Speaker, I want to commend the gentleman from Iowa, 
Chairman Leach, and the gentleman from New York, Chairman Lazio, for 
bringing this important bill before the House, and recognize the work 
of my distinguished colleagues from Massachusetts, Representatives 
Kennedy and Frank, and say that this is a very good bill that this 
House should pass today.
  I would also like to commend to the House the amendment to this bill 
that will include provisions of a bill that passed the House, the 
Senior Citizens Housing Safety and Economic Relief Act, last October 
under the Corrections Day Calendar by a vote of 415 to nothing.
  This legislation seeks to right a serious wrong. Today, senior 
citizens in America are living in fear, not just because of crime on 
the streets but because of crime in their own homes. As a result of an 
act of this House back in the late 1980's, drug and alcohol abusers are 
permitted to live in housing developments designated for the elderly.
  I want to remind the House of some of the testimony that we heard in 
the committee and some of the things that were said on the floor of 
this House that are occurring all over our great country.
  An elderly woman living in a public housing facility, for example, 
was shaken down for a $1,000 loan by a 38-year-old former drug abuser 
who lived in her complex.
  The Committee on Banking and Financial Services heard testimony last 
year from a senior citizen in my district in Worcester, MA, and she 
told horrific stories of harassment, theft, and filth and of elderly 
women petrified to leave their apartments. The unfortunate irony is 
that this particular building was known among seniors as one of the 
best in Worcester prior to passage of the housing amendment in 1988 
that allowed for the mixing of young drug and alcohol abusers with 
senior citizens.
  Today, the House can speak on this issue again by voting for the 
House amendment to S. 1494. This amendment will ensure that public 
housing authorities are given streamlined procedures to designate 
public housing facilities as ``elderly only.'' In addition, this 
amendment will provide sufficient authority to evict residents in these 
facilities who have a pattern of drug and alcohol abuse.
  Let us face it. There is absolutely no sane reason that former drug 
addicts should be placed in senior housing, turning the lives of the 
elderly into living nightmares. In the words of Anneliese Belculfino of 
Worcester, MA: ``I would like for the younger people to have their own 
building and let the seniors live in peace and without fear for the 
time they have left.''
  Let us end the practice which forces seniors to live in fear of young 
drug abusing neighbors that Uncle Sam forces them to live with. Support 
this amendment and urge our colleagues in the Senate to do the same so 
that this will be over once and for all. Let us pass this bill.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 3 minutes to my 
friend, the gentleman from Massachusetts [Mr. Frank].
  Mr. FRANK of Massachusetts. Mr. Speaker, I thank the chairman and 
ranking member, and I plan to vote for this bill.
  Mr. Speaker, I am a little puzzled why it is a tribute to the 
importance of Corrections Day that we are now repassing a bill that 
passed on Corrections Day. It would seem to me if Corrections Day 
worked, we would not be repassing the bill we passed on Correction Day. 
Maybe Corrections Day is the spring training of legislative practice.
  I am, however, in favor of much of what is in this bill, not 
everything, but I am going to vote for it. I particularly want to 
celebrate the continuation of tradition. One of the provisions in this 
bill is to give at least $25 million to Habitat for Humanity, and it is 
unusual that by name we single out a particular private organization 
and give them $25 million. Now they do very good work, and not entirely 
coincidentally, they do that very good work from headquarters in the 
State of Georgia.
  Now for many years my district was adjacent to that of Speaker Tip 
O'Neill, and I am very familiar with this practice. You have got an 
organization that is near the Speaker, they do some good work, and 
the Speaker decides they should be rewarded with public money, and Tip 
O'Neill used to do that, and I am glad to see that some traditions 
continue because Habitat for Humanity under the speakership of our 
current Speaker from Georgia is being singled out unusually for this 
money for their land acquisition costs.

  I am for it. I voted for it in committee. They were a good 
organization, and I think it is admirable that the Speaker says you are 
in my State, you do good work, here is $25 million. I would hope that 
some who do not recognize that the public sector has a role to play 
would understand that they should generalize this. Yes, it is important 
for public funds to be made available for good purposes, and it should 
not just be for organizations that happen to be in the State of the 
Speaker, and so I am glad about that.
  Finally, I also wanted to note what my neighbor and previous speaker 
said, this bill does go further with the separation of housing, elderly 
and nonelderly, although we did in 1992 pass legislation that began 
that process, and the city of Fort River in fact yesterday under the 
1992 legislation was given approval by the Federal Department of 
Housing so that 6 elderly units with 6 elderly buildings with 600 units 
as of now in Fort River under the 1992 act will be allowed that 
separation.
  This bill will make it easier for some other communities to comply 
with that, and I think it is a useful thing, but there was one 
particular part of it that is also in this bill that I think is 
important, and I want to express my sincere appreciation to the 
chairman for agreeing to it, and I would ask if he would acknowledge 
this.

[[Page H1275]]


                              {time}  1500

  One of the problems we have is this. There are some younger people 
who live with the elderly who are disruptive. I think we would all 
agree that the great majority of the younger people who are disabled, 
physically and in other ways disabled, who are put up with the elderly 
are in fact very decent people who cause no one any problem.
  What we have tried to do is to protect the right of the elderly to 
live by themselves when they wish to do that, without disadvantaging 
the great majority of people with disabilities who are in fact well-
behaved. I think we are all unanimous on this.
  One of the things that is in this bill is a provision that authorizes 
funds to be appropriated, such sums as might be necessary, so if a 
housing authority which has decided to separate the elderly from the 
disabled finds that in consequence it has well behaved disabled people 
who are hurting for housing, it will be able to set section 8 funds to 
accommodate them.
  I appreciate the gentleman putting this in. This will become law now, 
but we will need some help with the Committee on Appropriations. I hope 
the chairman, along with the work he has already done--I know he 
intends to work to see that the appropriations are made available if 
they are needed.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself 30 seconds.
  Mr. Speaker, I appreciate very much the gentleman's advocacy and his 
work on this issue. He correctly reflects the position, in a bipartisan 
way, of the committee. It is not our intention to leave younger people 
who need assistance, who have disabilities, without recourse. We want 
to provide resources for them.
  It is through his work that the committee authorizes such sums as may 
be needed, and we will work with the appropriators. I understand this 
will essentially be resolved, but we will continue to be advocates.
  Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Illinois 
[Mr. Weller].
  Mr. WELLER. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  First, I want to lead off by commending the chairman of the 
committee, the gentleman from New York [Mr. Lazio] for his leading in 
housing issues this year, and particularly my friend, the gentleman 
from Massachusetts [Mr. Blute] for his work on this issue that is very 
important to seniors in my home State of Illinois.
  Mr. Speaker, let us keep this issue real simple. This bill, as it is 
amended, rights a wrong, that jeopardizes the safety of my 
constituents, seniors living in senior housing. Today HUD bureaucrats 
say my seniors must live alongside recovering drug addicts and 
alcoholics, a situation that has forced many seniors to live in fear. 
In fact, according to testimony from seniors living in my district in 
the Chicago housing authority and other public housing authorities in 
Joliet, Will, Grundy, Kankakee, and LaSalle Counties, many seniors have 
been victims of rape, physical assault, and other violent crimes. Many 
fear daily for their safety.
  According to many of the news articles that many of have been sharing 
in this debate, and for the Record, I will be including one from the 
Boston Herald which points out that many seniors are even afraid to 
leave their apartments just to go to the store; for everyday 
activities, such as going shopping.
  S. 1494, as amended, incorporates language from H.R. 117, a bill I am 
proud to cosponsor with the gentleman from Massachusetts, [Mr. Blute], 
and was previously passed by the House last fall. S. 1494, as amended, 
rights this wrong and lets local housing authorities keep senior 
housing for seniors. This is an authority they have asked for. I urge 
an aye vote. Let us keep senior housing for seniors and keep seniors 
safe in public housing by passing this legislation. I ask for an aye 
vote.
  I include for the Record this news article to which I referred.
  The article is as follows:

      Rape Victim Sues BHA--Says Attacker Should Have Been Evicted

                           (By Joseph Mallia)

       A 92-year-old woman who was raped in her elderly-housing 
     apartment two years ago is suing the Boston Housing Authority 
     for failing to protect her from her assailant, another 
     resident with a history of violence.
       The housing authority is responsible because officials knew 
     the assailant, Eric Lee Davis, Jr., was dangerous but failed 
     to evict him, the women maintains in her Suffolk Superior 
     Court civil suit.
       The woman's name was not made public because she was the 
     victim of a sexual crime.
       ``The elderly have been asking for help for years. But the 
     only time the BHA or other agencies take notice is when a 
     lawsuit is filed,'' said the victim's lawyer, Jeffrey A. 
     Newman. ``This was a man who would assault them, threaten 
     them, walk around without clothes--they were absolutely 
     responsible to evict him.''
       The attack ``severely psychologically damaged'' the victim 
     the lawyer said. ``She has essentially lost her independence. 
     She's untrusting and fearful.''
       BHA officials could not be reached for comment last night.
       Davis, who is 6-foot 3-inches and weighs 190 pounds, was 
     found unfit to stand trial and was committed to Bridgewater 
     State Hospital, Newman said. After he was charged, Davis gave 
     police a tape-recorded confession, authorities said.
       Davis, who was 38 at the time of the attack, had faced a 
     previous attempted rape charge in a 1986 assault on a 66-
     year-old woman, law enforcement sources said. That charge was 
     dropped and Davis instead was civilly committed to Bridgwater 
     State Hospital for treatment, and later released.
       Federal law allows disabled and handicapped persons to live 
     in the Dorchester complex at 784 Washington St. which was 
     designed for the elderly. And elderly tenants of public 
     housing across the country face similar dangers, Newman said.
       For a year before the rape, Davis ``had harassed various 
     tenants; had threatened them; had demanded money and food 
     from them; had made a practice of roaming the hallways 
     causing various tenants to be afraid to walk the hallways 
     unaccompanied,'' according to court documentation.
       Davis also ``roamed the halls semi-naked; loudly expressed 
     threats and desires to kill various people and to rape 
     various people, including tenants and his own mother; he 
     grabbed various tenants including the rape victims,'' the 
     lawsuit claims.
       He also forcibly kisses the victim, and forced his way into 
     elderly tenant apartments, the lawyer says.
       The lawsuit accuses the BHA and its officials with 
     ``deliberate indifference to a known danger . . . the 
     dangerous activities and proclivities of Eric L. Davis.''

  Mr. KENNEDY of Massachusetts. Mr. Speaker, Joseph Patrick Kennedy now 
yields 2 minutes to the gentleman from Rhode Island, Patrick Joseph 
Kennedy.
  Mr. KENNEDY of Rhode Island. Mr. Speaker, I thank my cousin for 
yielding me this time.
  Mr. Speaker, I rise in support of this bill on two grounds; first, 
because it provides our senior citizens with the relief from their 
fears of being put into senior housing alongside drug dealers, as has 
been talked about by my colleagues already. In addition, I support not 
only those provisions, but those that would expedite the eviction 
proceedings for those who are a threat to senior citizens in their 
senior housing. That is something for which I applaud those who have 
supported this legislation today, for putting that into this 
legislation.
  I would also like to support the home equity conversion mortgage 
program, which is also contained within this bill. This makes senior 
citizens free from the fear of economic insecurity, not only their 
physical insecurity. In Rhode Island this program has been of special 
interest to us, because we rank among the top five participants in the 
Nation in terms of our utilization of this home mortgage conversion 
program.
  In Rhode Island, this is particularly well suited, because 62 percent 
of older Rhode Islanders own their own homes, and the typical 
conversion participant in Rhode Island is a 72-year-old person with an 
annual income of $13,000. Obviously, we all understand that this is not 
enough for them to make ends meet, and what they will be able to do 
under the home conversion mortgage program is convert their assets in 
their home to provide them with those additional resources that they 
need to pay for the food on their table, for the high cost of their 
prescription drugs which they are trying to pay for, and a host of 
other expenses that our senior citizens are living with, not to mention 
the additional expenses they are going to have to pay if the 
Republicans get away with cutting Medicare $270 billion and adding to 
the copay of our senior citizens through turning over our Medicare 
Program to a managed care program, which the new leadership wants to 
do. But that aside, let me say, Mr. Speaker, that on this bill, I 
support the leadership's attempts to address both the economic and 
physical concerns of our elderly. 

[[Page H1276]]

  Mr. LAZIO of New York. Mr. Speaker, I yield 1 minute to the gentleman 
from Delaware [Mr. Castle], former Governor of Delaware and 
distinguished member of the Committee on Banking and Financial 
Services.
  Mr. CASTLE. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I would like to thank Chairman Lazio for the opportunity 
to speak on this legislation, and for his efforts to reform Federal 
housing programs. I rise in support of S. 1494, the Housing Program 
Extension Act, with the House amendments this bill will extend a number 
of necessary housing programs for this fiscal year.
  In particular, I support the inclusion of H.R. 117, the Senior 
Housing Safety Act in this bill, to protect the elderly in public 
housing from young people with a drug or alcohol problem.
  As we all know, HUD is sorely in need of restructuring. The bill 
before us today is a temporary step to keep programs operating for this 
year. It is critical that we take the next step and completely reform 
public housing programs. Last November, the House Banking Committee 
passed H.R. 2406, the U.S. Housing Act. This bill will fundamentally 
reform, restructure, and streamline Federal housing programs to provide 
greater flexibility to local housing officials and start the process of 
giving tenants the opportunity to move out of public housing as soon as 
they are able.
  Mr. Speaker, I support this short-term authorization bill, but I urge 
the House to take up fundamental housing reform, H.R. 2406, as soon as 
possible. We owe it to the residents of public housing and the 
taxpayers of this country.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 2 minutes to my 
friend, the gentlewoman from Texas, Sheila Jackson-Lee.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the ranking member for 
his leadership, and I thank the chairman, as well, for really targeting 
an issue in which many of us are involved. I have just come back from 
the district work break in Houston, and participated in an initiative 
by our city to put 25,000 affordable housing units in our core city 
area. Part of those units will certainly improve and help elderly 
citizens. It will help families, single parents with children.
  But this authorization process and this S. 1494, along with H.R. 117, 
combined, answers many questions. One, it helps local governments with 
their community block grants, because these were expired, and now we 
are going to add to that. Additionally, I have in my community some 
9,000 people on the public housing waiting lists, and with project-
based section 8 units now being reinstituted, we now have the 
opportunity to get more housing along those lines.
  I think it is important that with the reverse mortgage program, we 
actually acknowledge that seniors have had a hard time making ends 
meet. They are responsible individuals. Why not give them the 
opportunity to in fact utilize their home equity and to provide for 
them, to make sure they can make ends meet, and not have this burden, 
if you will, come to fruition until the loan or the house is sold.
  One of the points that I wanted to make with H.R. 117 is to not throw 
the baby out with the bath water. That, of course, is the concern about 
physically challenged individuals who need housing, and the fact that 
it was not the idea of finding housing for physically challenged, it 
was the misconstruction of putting those who are suffering from drug 
and alcohol abuse, adults, mixed in with our senior citizens.
  I hope we will have a plan, of course, that we will continue to give 
local housing authorities the authority and discretion to have elderly 
families-only housing, to have disabled families-only housing, and as 
well, mixed family and disabled housing, so that the children are not 
forgotten. I think, however, this is a good bill. It protects our 
senior citizens. I just want to ensure that our disabled children and 
others who are physically challenged, who are not suffering from drug 
and alcohol addiction as adults and are creating illegal activities, 
will have a place to live, particularly those who are mentally 
challenged. That has been raised in my community.
  I thank the gentleman.
  Mr. LAZIO of New York. Mr. Speaker, I yield 1 minute to the 
distinguished gentleman from Ohio [Mr. Ney], a member of the Committee 
on Banking and Financial Services and a member of the Housing 
Subcommittee who has truly made his mark.
  Mr. NEY. Mr. Speaker, I rise in strong support of the House version 
of S. 1494, because it reauthorizes five major programs and encourages 
homeownership and affordable housing development in this country. But 
also, like the previous speakers on both sides of the aisle, I also 
want to mention that by bipartisan support in the Committee on Banking 
and Financial Services, we had a good measure come forth, and that has 
been talked about by the previous speakers. That is inclusion of the 
language in the revised version of the bill that would allow public 
housing agencies and landlords who receive Federal assistance to more 
easily designate certain dwellings as elderly only, disabled only, or 
elderly and disabled. I thank the gentleman from New York [Mr. Lazio] 
for his perseverance on this issue, and the gentleman from 
Massachusetts [Mr. Blute], of course, for bringing this issue forth.
  While there are almost 3,400 public housing developments nationwide, 
only 10 have been approved by HUD and designated as elderly only. When 
I served in the State senate, Marty Gould, who is the head of Martins 
Ferry housing authority in Belmont County, OH, among other directors, 
had continuously called, because there was always one view coming out 
of Washington, some rules and regulations, and the directors really did 
not know what to do. This clarifies it once and for all, adds good 
protection for our senior citizens, and is the right thing to do.
  Mr. LAZIO of New York. Mr. Speaker, I yield 2 minutes to the 
gentleman from North Carolina [Mr. Heineman], a distinguished member of 
the Subcommittee on Housing as well, who has been very helpful to me.
  Mr. HEINEMAN. Mr. Speaker, today I rise in strong support of the 
House amendment to S. 1494, the Housing Opportunity Program Extension 
Act of 1995. Let me take this opportunity to commend my good friends, 
Chairman Rick Lazio and Representative Peter Blute for their work 
crafting this House amendment.
  It is critically important that the House pass S. 1494 as amended. 
This bill incorporates the language of H.R. 117, the Senior Citizens 
Housing Safety and Economic Relief Act. Here, we have another 
opportunity to address this issue, and I urge my colleagues to take 
this opportunity and vote in favor of a bill to help protect senior 
citizens.
  I was proud to be an original cosponsor of H.R. 117. You will recall 
that H.R. 117 provides protection for our vulnerable senior citizens 
who live in public housing. There is a crisis across this country, 
brought about because of misguided housing policies that have allowed 
drug and alcohol abusers to live side by side with vulnerable senior 
citizens. The law was intended to provide housing for seniors and the 
disabled, but drug abusers have figured out how to tell public housing 
officials that their drug addictions make them disabled, so that they 
too can claim public housing rights--next door to our most vulnerable 
elderly Americans.
  Mr. Speaker, by now we have all heard the horror stories of senior 
citizens victimized in their own neighborhoods by drug and alcohol 
abusers. I urge my colleagues to pass this bipartisan House amendment, 
so that the senior citizens who live in public housing can be protected 
from these terrible crimes. Let's get this bill to the President's desk 
so that he can sign it without delay.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, again, I want to say that I believe that this bill 
deserves the support of both sides of the aisle. I think it is 
important legislation that continues programs that are vitally 
necessary to preserve the kind of housing dreams that many working 
families, low-income, and senior citizens of this country are in great 
need of these days.
  There are problems with this bill. There is no reason why the 515 
program that the gentleman from Illinois [Mr. Durbin] spoke so 
eloquently about should not be reformed. There are deals that get done 
around here that should be done in the light of day. That one 

[[Page H1277]]
was not, but I believe that overall, this bill is a positive 
development, and again, I want to compliment my friend, the gentleman 
from New York [Mr. Lazio], for the fine work that he has done on this 
bill.

                              {time}  1515

  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, let me begin by stating this legislation has moved 
forward in a way that I think this body can be very proud of, in a 
bipartisan fashion, with the input of both Republican and Democratic 
members of the subcommittee and the full committee, with changes that 
have been made based on good reasoning, with an intent to help those 
people that need our help the most: The first-time home buyers, the 
senior who is couch-rich but cash-poor and desperately needs that money 
to remodel their house, the resources to provide opportunity for first-
time homebuyers who otherwise would not be able to fulfill their 
American dream.
  This bill begins a process of reform in a very limited way. Certainly 
we will be doing more, proposing more as the year goes on. It certainly 
begins some reforms that are important, the reform of self-help 
housing, where we are using as little as $6,000 of Federal dollars, not 
just to build an apartment unit but to build a whole house through 
Habitat for Humanity and other self-help housing groups that will not 
be focusing just on the State of Georgia but in every State in the 
Nation with an assurance in this legislation there will be geographic 
diversity based primarily on need. That would be very, very important.
  This bill will boost homeownership levels in areas where, 
particularly in underserved areas, where we need it desperately. It 
provides shelter to millions of Americans that will need it that would 
otherwise be vulnerable through expiring contracts, and we will be 
renewing those contracts and the subsidies through this legislation.
  I would also want to comment here, Mr. Speaker, that this bill would 
not have been possible without the cooperation of the staffs on both 
sides of the aisle. I want to point out one person in particular, 
Valerie Baldwin, who has been a very noted member and hard-working 
member of the subcommittee staff. This will be the last time that she 
will be on the floor as a member of the staff of this authorizing 
subcommittee. Our loss is the appropriators' gain, and we hope that 
that will build a better relationship with the appropriators, frankly, 
as she moves over there. She has been of indispensable help in drafting 
this legislation, in advising this chairman and this committee on 
issues on housing and community opportunity. That should not take away 
from the other work done by the Democratic and Republican members of 
the staff and also the Members themselves who serve on the committee.
  This has been a truly collaborative effort. It is an effort that I 
think will bear fruit. As the gentleman from Massachusetts [Mr. 
Kennedy] remarked, we wish we would have gotten the last reforms in 
there. We will continue to work on those reforms, because they are 
needed. But we did get significant concessions from the other body. 
Frankly, we wish we would not have to fight as hard as we do to get 
these reforms. We will keep at it, I say to the gentleman from 
Massachusetts, with your help and with the members of the other 
committee, until we get these reforms.
  Mr. Speaker, I yield 1 minute to my friend, the gentleman from 
Nebraska [Mr. Bereuter], the chairman of the Subcommittee on 
International Relations.
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Mr. Speaker, I thank the gentleman from New York, the 
subcommittee chairman, for yielding me this time. I will be brief in my 
comments.
  I rise in support of the House amendments to S. 1494. Overall, the 
bill is a very good piece of legislation, and this Member commends the 
leadership of the gentleman from New York and others on this 
subcommittee.
  I want to endorse specifically section 5 of the House amendments. 
This section authorizes a program which this Member sought for years, 
the Rural Rental Multifamily Housing Loan Guarantee Program. As a 
matter of fact, we already have conditional appropriations for this 
legislation. We have been waiting since the previous Congress when the 
Senate failed to act upon our legislation in order to have the 
authorizing legislation, but unless we pass this amendment to create 
what is, in effect, a new section 515 loan guarantee program, that 
appropriation will lapse.
  It is modeled after the 502 program for single-family housing. It is 
a very efficient use of our resources. Rather than relying on direct 
loans, we are relying on loan guarantees.
  The default rate of the previous program has been 2.33, an amazing 
success, having built 24,000 units. I urge support for the House 
amendments.
  Mr. Speaker, despite a conflict which requires this Member to chair a 
Housing and Community Opportunity Subcommittee hearing on Indian 
housing, this Member rises today to offer his strong support for the 
House amendment to S. 1494--the Housing Opportunity Program Extension 
Act of 1995. Overall, the bill is very good legislation and this Member 
commends the committee for their hard work. Today, this Member rises to 
speak specifically to section 5 of the House amendment. This section 
authorizes a program which this Member has sought for years: the Rural 
Rental Multifamily Housing Loan Guarantee Program.
  Section 5 of this measure is identical to legislation passed by the 
House in the 103d Congress as part of H.R. 3838, the Housing and 
Community Development Act of 1994, passed July 22, 1994. This 
legislation would create a new Federal loan guarantee program for the 
construction of multifamily rental housing units. Because H.R. 3838 
died when the Senate failed to act on it in the last hours of the 103d 
Congress, this Member reintroduced legislation to authorize the loan 
guarantee program.

  Currently, the only Federal program allowing development of this type 
of housing is the Rural Housing and Community Development Service's 
Section 515 Program, a direct loan program which has, unfortunately, 
been plagued with problems. Because of these problems and because 
Federal funds become more scarce every year, the direct loan program is 
almost certain to shrink. Therefore, there is a need for a new approach 
that would cost taxpayers less but still provide equal or greater 
housing opportunity in rural areas. The new program would be known as 
the Section 515 Loan Guarantee Program.
  At this point this Member is not advocating replacing the existing 
program, but only augment it, at a lower cost, in order to provide at 
least some more rental housing opportunities needed by a sizable 
segment of America's population living in smaller communities. The new 
program will provide a Federal guarantee on loans made to eligible 
persons by private lenders. Developers will bring 10 percent of the 
cost of the project to the table, and private lenders will make loans 
for the balance. The lenders will be given a 100-percent Federal 
guarantee on the loans they make. Unlike the current 515 program, where 
the full costs are borne by the Federal Government, the only costs to 
the Federal Government under the 538 guarantee program will be for 
administrative costs and potential defaults. It should be noted that 
this program is based on the recent experience with the very successful 
FmHA 502 Middle Income Loan Guarantee Program for home ownership. That 
program, which this Member first proposed, has a default rate of only 
2.33 percent with over 24,000 units financed since 1991.
  Also, Mr. Speaker, you should note that, with bipartisan support on 
the Appropriations Committee, this Member was successful in advocating 
the inclusion of $1 million funding for this program in the Department 
of Agriculture appropriation for fiscal 1996, making it possible to 
finance approximately $25 million in guarantees. Therefore, the program 
can move forward as soon as it is authorized, but the appropriation 
will be recaptured if the program is not authorized in fiscal 1996.
  In closing, history has proven that loan guarantees are a more cost-
effective and expeditious use of scarce Federal dollars. As budgets are 
slashed, this type of program promises to continue to make Federal 
assistance available for housing development in America's 
nonmetropolitan cities.
   Mr. Speaker, this Member urges his colleagues to vote ``yea'' on 
this measure.


                             general leave

  Mr. LAZIO of New York. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on the bill now under consideration.
  The SPEAKER pro tempore (Mr. Duncan). Is there objection to the 
request of the gentleman from New York?

[[Page H1278]]

  There was no objection.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  I would conclude and again thank Members on both sides of the aisle 
for their remarkable efforts to move this bill forward.
  Mr. GUTIERREZ. Mr. Speaker, I rise today in support of S. 1494 that 
seeks to authorize a variety of housing programs for fiscal year 1996. 
Two programs contained in this bill are critical to the well-being and 
safety of residents and will assure the continuation of decent, 
affordable housing.
  The problems in housing inhabited by both seniors and persons with 
disabilities are much too serious and dangerous to ignore. I am very 
glad to see the attention this issue has received. Seniors in my 
district are frightened and they are angry. HUD and many housing 
authorities, including the Chicago Housing Authority, have been slow to 
take this problem seriously.
  I believe the bill before the House today will aid housing 
authorities in evicting those people who pose a serious threat to other 
residents. As I have indicated since January of last year, the need to 
address this issue is critical. On January 15, 1995, I wrote to 
Chairman Lazio asking that the Housing Subcommittee hold hearings on 
this issue. Unfortunately, another year passed while many seniors have 
continued to live in fear.
  I believe S. 1494 is a good bill. I believe this legislation will 
assist housing authorities in the critical area of keeping problem 
residents out of elderly housing from the start. I commend the will of 
this House to address this most troubling problem and trust that the 
final solution will provide seniors and persons with disabilities who 
reside in public housing with some measure of relief.
  In addition, I am pleased to see that S. 1494 includes provisions 
authorizing the housing preservation program. This program has provided 
thousands of Chicago's low-income elderly citizens and families with 
safe, affordable, and quality housing. Although additional reforms may 
be needed, S. 1494 does include those reforms contained in H.R. 2099, 
the VA-HUD appropriations bill for 1996.
  One important reform measure gives funding priority to tenant and 
nonprofit purchasers. For many buildings I believe this is a preferable 
option and will help ensure that the property is retained as affordable 
housing for the remainder of its useful life. One building in my 
district, Northwest Tower, will benefit greatly from this provision. 
HUD is currently reviewing the application of the Northwest Tower 
Residents Association to purchase the building. This would not only 
save the building as a valuable affordable housing source, but, after 
the initial renovation, will significantly decrease the subsidy 
currently being provided by HUD.
  I believe the authorization of these two programs will prove 
beneficial to those concerned with the provision of safe and affordable 
housing for low-income tenants. Congress must protect the elderly from 
those residents who are disruptive and often violent. We also must 
continue to support the preservation program and the tenants currently 
residing in these buildings. S. 1494 accomplishes those two objectives. 
Therefore, I urge my colleagues to support this legislation.
  Mr. LAZIO of New York. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York [Mr. Lazio] that the House suspend the rules 
and pass the Senate bill, S. 1494, as amended.
  The question was taken.
  Mr. LAZIO of New York. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I, and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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