Congressional Record, Volume 142 Issue 24 (Tuesday, February 27, 1996)

[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.

____________________