[Congressional Record Volume 142, Number 62 (Tuesday, May 7, 1996)]
[House]
[Pages H4504-H4531]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                               H.R. 2406

                  Offered By: Mr. Barrett of Wisconsin

       Amendment No. 1: Page 41, line 13, strike ``Exceptions.--'' 
     and insert ``Exception for Volunteers.--''.
       Page 41, strike lines 16 through 18 and insert the 
     following:

     to public housing, shall not apply to any individual who--
       Page 42, strike lines 3 through 8.

                               H.R. 2406

                        Offered By: Mr. Ehrlich

       Amendment No. 2: Page 43, after line 16, insert the 
     following new section:

     SEC. 115. PROHIBITION ON USE OF FUNDS.

       Notwithstanding any other provision of law, none of the 
     amounts provided under this Act may be used for the purpose 
     of funding the relocation of public housing residents and 
     applicants from Baltimore City, Maryland, to other 
     jurisdiction in the State of Maryland if such relocation is 
     in connection with any settlement, consent decree, 
     injunction, judgment, or other resolution of litigation 
     brought by public housing residents of Balitmore City, 
     Maryland, concerning the demolition of certain public housing 
     uinits in such city.

                               H.R. 2406

                        Offered By: Mr. Ehrlich

       Amendment No. 3: Page 181, after line 6, insert the 
     following new section:

     SEC. 374. PROHIBITION OF USE OF RACE IN DEFINING AREAS FOR 
                   USE OF RENTAL ASSISTANCE

       The Secretary, a local housing and management authority, 
     and any other entity involved in the provision of housing 
     assistance under this title, may not define, establish, or 
     otherwise indicate any geographical region for purposes of 
     any requirement, limitation, or other provision relating to 
     the use of such assistance that is based, in whole or in 
     part, on the racial charactersitics of the population (or any 
     portion of the population) of such region.

                               H.R. 2406

                  Offered By: Mr. Fields of Louisiana

       Amendment No. 4: Page 14, strike line 18 and all that 
     follows through page 16, line 18, and insert the following:
       (A) In general.--In localities in which a local housing and 
     management authority is governed by a board of directors or 
     other similar body, not less than 25 percent of the members 
     of the board or body shall be individuals who are--
       (i) residents of public housing dwelling units owned or 
     operated by the authority; or
       (ii) members of assisted families under title III.
       (B) Election and training.--Members of the board of 
     directors or other similar body by reason of subparagraph (A) 
     shall be selected for such membership in an election in which 
     only residents of public housing dwelling units owned or 
     operated by the authority and members of assisted families 
     under title III who are assisted by the authority are 
     eligible to vote. The authority shall provide such members 
     with training appropriate to assist them to carry out their 
     responsibilities as members of the board or other similar 
     body.

                               H.R. 2406

                  Offered By: Mr. Fields of Louisiana

       Amendment No. 5: Page 17, after line 17, insert the 
     following new subsection:
       (d) Local Advisory Board.--
       (1) In general.--Except as provided in paragraph (4), each 
     local housing and management authority shall establish one or 
     more local advisory boards in accordance with this 
     subsection, the membership of which shall adequately reflect 
     and represent all of the residents of the dwelling units 
     owned, operated, or assisted by the local housing and 
     management authority.
       (2) Membership.--Each local advisory board established 
     under this subsection shall be composed of the following 
     members:
       (A) Tenants.--Not less than 60 percent of the members of 
     the board shall be tenants of dwelling units owned, operated, 
     or assisted by the local housing and management authority, 
     including representatives of any resident organizations.
       (B) Other members.--The members of the board, other than 
     the members described in subparagraph (A), shall include--
       (i) representatives of the community in which the local 
     housing and management authority is located; and
       (ii) local government officials of the community in which 
     the local housing and management authority is located.
       (3) Purpose.--Each local advisory board established under 
     this subsection shall assist and make recommendations 
     regarding the development of the local housing management 
     plan for the authority. The local housing and management 
     authority shall consider the recommendations of the local 
     advisory board in preparing the final local housing 
     management plan, and shall include a copy of those 
     recommendations in the local housing management plan 
     submitted to the Secretary under section 107.
       (4) Waiver.--The Secretary may waive the requirements of 
     this subsection with respect to tenant representation on the 
     local advisory board of a local housing and management 
     authority, if the authority demonstrates to the satisfaction 
     of the Secretary that a resident council or other tenant 
     organization of the local housing and management authority 
     adequately represents the interests of the tenants of the 
     authority.

                               H.R. 2406

                         Offered By: Mr. Filner

       Amendment No. 6: Page 170, after line 3, insert the 
     following new section:

     SEC. 330. ASSISTANCE FOR RENTAL OF MANUFACTURED HOMES.

       (a) Authority.--Nothing in this title may be construed to 
     prevent a local housing and management authority from 
     providing housing assistance under this title on behalf of a 
     low-income family for the rental of--
       (1) a manufactured home that is the principal residence of 
     the family and the real property on which the home is 
     located; or
       (2) the real property on which is located a manufactured 
     home, which is owned by the family and is the principal 
     residence of the family.
       (b) Assistance for Certain Families Owning Manufactured 
     Homes.--
       (1) Authority.--Notwithstanding section 351 or any other 
     provision of this title, a local housing and management 
     authority that receives amounts under a contract under 
     section 302 may enter into a housing assistance payment 
     contract to make assistance payments under this title to a 
     family that owns a manufactured home, but only as provided in 
     paragraph (2).
       (2) Limitations.--In the case of a low-income family that 
     owns a manufactured home, rents the real property on which it 
     is located, and to whom housing assistance under this title 
     has been made available for the rental of such property, the 
     local housing and management authority making such assistance 
     available shall enter into a contract to make housing 
     assistance payments under this title directly to the family 
     (rather than to the owner of such real property) if--
       (1) the owner of the real property refuses to enter into a 
     contract to receive housing assistance payments pursuant to 
     section 351(a);
       (2) the family was residing in such manufactured home on 
     such real property at the time such housing assistance was 
     initially made available on behalf of the family;
       (3) the family provides such assurances to the agency, as 
     the Secretary may require, to ensure that amounts from the 
     housing assistance payments are used for rental of the real 
     property; and
       (4) the rental of the real property otherwise complies with 
     the requirements for assistance under this title.

     A contract pursuant to this subsection shall be subject to 
     the provisions of section 351 and any other provisions 
     applicable to housing assistance payments contracts under 
     this title, except that the Secretary may provide such 
     exceptions as the Secretary considers appropriate to 
     facilitate the provision of assistance under this subsection.

                               H.R. 2406

                 Offered By: Mr. Frank of Massachusetts

       Amendment No. 7: Page 76, after line 16, insert the 
     following:

     Notwithstanding any other provision of this subsection, the 
     amount paid by a family for monthly rent for a dwelling unit 
     in public housing may not exceed 30 percent of the family's 
     adjusted monthly income.
       Page 157, after line 26, insert the following new 
     subsection:
       (b) Limitation.--Notwithstanding any other provision of 
     this section, the amount paid by an assisted family for 
     monthly rent for an assisted dwelling unit bearing a gross 
     rent that does not exceed the payment standard established 
     under section 353 for a dwelling unit of the applicable size 
     and located in the market area in which such assisted 
     dwelling unit is located may not exceed 30 percent of the 
     family's adjustment monthly income.
       Page 158, line 1, strike ``(b)'' and insert ``(c)''.
       Page 158, line 9, strike ``(c)'' and insert ``(d)''.
       Page 158, line 1, strike ``(d)'' and insert ``(e)''.
       Page 172, lines 9 through 11, strike ``the amount of the 
     resident contribution determined in accordance with section 
     322'' and insert ``the lesser of the amount of the resident 
     contribution determined in accordance with section 322 or 30 
     percent of the family's adjusted monthly income''.

                               H.R. 2406

                       Offered By: Mr. Gutierrez

       Amendment No. 8: Page 41, line 13, strike ``Exceptions.--'' 
     and insert ``Exception for Volunteers.--''.
       Page 41, strike lines 16 through 18 and insert the 
     following:

     to public housing, shall not apply to any individual who--

[[Page H4505]]

       Page 42, strike lines 3 through 8.

                               H.R. 2406

                        Offered by: Mr. Hayworth

       Amendment No. 9: Page 9, strike line 12 and all that 
     follows through page 10, line 12.
       Page 13, line 2, after ``Samoa,'' insert ``and''.
       Page 13, line 3, strike ``, and Indian tribes''.
       Page 13, lines 19 and 20, strike ``or Indian housing 
     authority''.
       Page 14, after line 8, insert the following:

     The term does not include any entity that is Indian housing 
     authority for purposes of the United States Housing Act of 
     1937 (as in effect before the enactment of this Act) or a 
     tribally desingated housing entity, as such term is defined 
     in section 604.
       Page 43, after line 4, insert the following new section:

     SEC. 114. INAPPLICABILITY TO INDIAN HOUSING.

       Except as specifically provided by law, the provisions of 
     this title, and titles II, III, and IV shall not apply to 
     public housing developed or operated pursuant to a contract 
     between the Secretary and an Indian housing authority or to 
     housing assisted under the Native American Housing Assistance 
     and Self-Determination Act of 1996.
       Page 53, strike line 19 and all that follows through page 
     54, line 5.
       Page 57, line 20, strike ``and Indian''.
       Page 89, strike lines 11 through 15.
       Page 102, lines 19 and 20, strike ``, except that it does 
     not include Indian housing authorities''.
       Page 144, line 2, strike ``and Indian''.
       Page 144, strike lines 11 through 15.
       Page 144, line 16, strike ``(d)'' and insert ``(c)''.
       Page 217, strike lines 16 through 20.
       At the end of the bill, insert the following new title:
              TITLE VI--NATIVE AMERICAN HOUSING ASSISTANCE

     SECTION 601. SHORT TITLE.

       This title may be cited as the ``Native American Housing 
     Assistance and Self-Determination Act of 1996''.

     SEC. 602. CONGRESSIONAL FINDINGS.

       The Congress hereby finds that--
       (1) the Federal Government has a responsibility to promote 
     the general welfare of the Nation--
       (A) by using Federal resources to aid families and 
     individuals seeking affordable homes that are safe, clean, 
     and healthy and, in particular, assisting responsible, 
     deserving citizens who cannot provide fully for themselves 
     because of temporary circumstances or factors beyond their 
     control;
       (B) by working to ensure a thriving national economy and a 
     strong private housing market; and
       (C) by developing effective partnerships among the Federal 
     Government, State and local governments, and private entities 
     that allow government to accept responsibility for fostering 
     the development of a healthy marketplace and allow families 
     to prosper without government involvement in their day-to-day 
     activities;
       (2) there exists a unique relationship between the 
     Government of the United States and the governments of Indian 
     tribes and a unique Federal responsibility to Indian people;
       (3) the Constitution of the United States invests the 
     Congress with plenary power over the field of Indian affairs, 
     and through treaties, statutes, and historical relations with 
     Indian tribes, the United States has undertaken a trust 
     responsibility to protect Indian tribes;
       (4) the Congress, through treaties, statutes, and the 
     general course of dealing with Indian tribes, has assumed the 
     responsibility for the protection and preservation of Indian 
     tribes and for working with tribes and their members to 
     improve their socio-economic status so that they are able to 
     take greater responsibility for their own economic condition;
       (5) providing affordable and healthy homes is an essential 
     element in the special role of the United States in helping 
     tribes and their members to achieve a socio-economic status 
     comparable to their non-Indian neighbors;
       (6) the need for affordable and healthy homes on Indian 
     reservations, in Indian communities, and in Native Alaskan 
     villages is acute and the Federal Government should work not 
     only to provide housing assistance, but also, to the extent 
     practicable, to assist in the development of private housing 
     finance mechanisms on Indian lands to achieve the goals of 
     economic self-sufficiency and self-determination for tribes 
     and their members; and
       (7) Federal assistance to meet these responsibilities 
     should be provided in a manner that recognizes the right of 
     tribal self-governance by making such assistance available 
     directly to the tribes or tribally designated entities.

     SEC. 603. ADMINISTRATION THROUGH OFFICE OF NATIVE AMERICAN 
                   PROGRAMS.

       The Secretary of Housing and Urban Development shall carry 
     out this title through the Office of Native American Programs 
     of the Department of Housing and Urban Development.

     SEC. 604. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Affordable housing.--The term ``affordable housing'' 
     means housing that complies with the requirements for 
     affordable housing under subtitle B. The term includes 
     permanent housing for homeless persons who are persons with 
     disabilities, transitional housing, and single room occupancy 
     housing.
       (2) Families and persons.--
       (A) Single persons.--The term ``families'' includes 
     families consisting of a single person in the case of (i) an 
     elderly person, (ii) a disabled person, (iii) a displaced 
     person, (iv) the remaining members of a tenant family, and 
     (v) any other single persons.
       (B) Families.--The term ``families'' includes families with 
     children and, in the cases of elderly families, near-elderly 
     families, and disabled families, means families whose heads 
     (or their spouses), or whose sole members, are elderly, near-
     elderly, or persons with disabilities, respectively. The term 
     includes, in the cases of elderly families, near-elderly 
     families, and disabled families, 2 or more elderly persons, 
     near-elderly persons, or persons with disabilities living 
     together, and 1 or more such persons living with 1 or more 
     persons determined under the regulations of the Secretary to 
     be essential to their care or well-being.
       (C) Absence of children.--The temporary absence of a child 
     from the home due to placement in foster care shall not be 
     considered in determining family composition and family size 
     for purposes of this title.
       (D) Elderly person.--The term ``elderly person'' means a 
     person who is at least 62 years of age.
       (E) Person with disabilities.--The term ``person with 
     disabilities'' means a person who--
       (i) has a disability as defined in section 223 of the 
     Social Security Act,
       (ii) is determined, pursuant to regulations issued by the 
     Secretary, to have a physical, mental, or emotional 
     impairment which (I) is expected to be of long-continued and 
     indefinite duration, (II) substantially impedes his or her 
     ability to live independently, and (III) is of such a nature 
     that such ability could be improved by more suitable housing 
     conditions, or
       (iii) has a developmental disability as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act.

     Such term shall not exclude persons who have the disease of 
     acquired immunodeficiency syndrome or any conditions arising 
     from the etiologic agent for acquired immunodeficiency 
     syndrome.
       (F) Displaced person.--The term ``displaced person'' means 
     a person displaced by governmental action, or a person whose 
     dwelling has been extensively damaged or destroyed as a 
     result of a disaster declared or otherwise formally 
     recognized pursuant to Federal disaster relief laws.
       (G) Near-elderly person.--The term ``near-elderly person'' 
     means a person who is at least 50 years of age but below the 
     age of 62.
       (3) Grant beneficiary.--The term ``grant beneficiary'' 
     means the Indian tribe or tribes on behalf of which a grant 
     is made under this title to a recipient.
       (4) Indian.--The term ``Indian'' means any person who is a 
     member of an Indian tribe.
       (5) Indian area.--The term ``Indian area'' means the area 
     within which a tribally designated housing entity is 
     authorized to provide assistance under this title for 
     affordable housing.
       (6) Indian tribe.--The term ``Indian tribe'' means--
       (A) any Indian tribe, band, nation, or other organized 
     group or community of Indians, including any Alaska Native 
     village or regional or village corporation as defined in or 
     established pursuant to the Alaska Native Claims Settlement 
     Act, which is recognized as eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians pursuant to the Indian Self-
     Determination and Education Assistance Act of 1975; and
       (B) any tribe, band, nation, pueblo, village, or community 
     that--
       (i) has been recognized as an Indian tribe by any State; 
     and
       (ii) for which an Indian housing authority is eligible, on 
     the date of the enactment of this title, to enter into a 
     contract with the Secretary pursuant to the United States 
     Housing Act of 1937.
       (7) Local housing plan.--The term ``local housing plan'' 
     means a plan under section 612.
       (8) Low-income family.--The term ``low-income family'' 
     means a family whose income does not exceed 80 percent of the 
     median income for the area, except that the Secretary may, 
     for purposes of this paragraph, establish income ceilings 
     higher or lower than 80 percent of the median for the area on 
     the basis of the authority's findings that such variations 
     are necessary because of unusually high or low family 
     incomes.
       (9) Median income.--The term ``median income'' means, with 
     respect to an area that is an Indian area, the greater of--
       (A) the median income for the Indian area, which the 
     Secretary shall determine; or
       (B) the median income for the United States.
       (10) Recipient.--The term ``recipient'' means the entity 
     for an Indian tribe that is authorized to receive grant 
     amounts under this title on behalf of the tribe, which may 
     only be the tribe or the tribally designated housing entity 
     for the tribe.
       (11) Tribally designated housing entity.--The terms 
     ``tribally designated housing entity'' and ``housing entity'' 
     have the following meaning:

[[Page H4506]]

       (A) Existing iha's.--For any Indian tribe that has not 
     taken action under subparagraph (B) and for which an Indian 
     housing authority--
       (i) was established for purposes of the United States 
     Housing Act of 1937 before the date of the enactment of this 
     title that meets the requirements under the United States 
     Housing Act of 1937,
       (ii) is acting upon such date of enactment as the Indian 
     housing authority for the tribe, and
       (iii) is not an Indian tribe for purposes of this title,

     the terms mean such Indian housing authority.
       (B) Other entities.--For any Indian tribe that, pursuant to 
     this Act, authorizes an entity other than the tribal 
     government to receive grant amounts and provide assistance 
     under this title for affordable housing for Indians, which 
     entity is established--
       (i) by exercise of the power of self-government of an 
     Indian tribe independent of State law, or
       (ii) by operation of State law providing specifically for 
     housing authorities or housing entities for Indians, 
     including regional housing authorities in the State of 
     Alaska,

     the terms mean such entity.

     A tribally designated housing entity may be authorized or 
     established by one or more Indian tribes to act on behalf of 
     each such tribe authorizing or establishing the housing 
     entity. Nothing in this title may be construed to affect the 
     existence, or the ability to operate, of any Indian housing 
     authority established before the date of the enactment of 
     this title by a State-recognized tribe, band, nation, pueblo, 
     village, or community of Indian or Alaska Natives that is not 
     an Indian tribe for purposes of this title.
       (12) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development, except as otherwise 
     specified in this title.
            Subtitle A--Block Grants and Grant Requirements

     SEC. 611. BLOCK GRANTS.

       (a) Authority.--For each fiscal year, the Secretary shall 
     (to the extent amounts are made available to carry out this 
     title) make grants under this section on behalf of Indian 
     tribes to carry out affordable housing activities. Under such 
     a grant on behalf of an Indian tribe, the Secretary shall 
     provide the grant amounts for the tribe directly to the 
     recipient for the tribe.
       (b) Condition of Grant.--
       (1) In general.--The Secretary may make a grant under this 
     title on behalf of an Indian tribe for a fiscal year only 
     if--
       (A) the Indian tribe has submitted to the Secretary a local 
     housing plan for such fiscal year under section 612; and
       (B) the plan has been determined under section 613 to 
     comply with the requirements of section 612.
       (2) Waiver.--The Secretary may waive the applicability of 
     the requirements under paragraph (1), in whole or in part, if 
     the Secretary finds that an Indian tribe has not complied or 
     can not complied with such requirements because of 
     circumstances beyond the control of the tribe.
       (c) Amount.--Except as otherwise provided under subtitle B, 
     the amount of a grant under this section to a recipient for a 
     fiscal year shall be--
       (1) in the case of a recipient whose grant beneficiary is a 
     single Indian tribe, the amount of the allocation under 
     section 641 for the Indian tribe; and
       (2) in the case of a recipient whose grant beneficiary is 
     more than 1 Indian tribe, the sum of the amounts of the 
     allocations under section 641 for each such Indian tribe.
       (d) Use for Affordable Housing Activities.--Except as 
     provided in subsection (f), amounts provided under a grant 
     under this section may be used only for affordable housing 
     activities under subtitle B.
       (e) Effectuation of LHP.--Except as provided in subsection 
     (f), amounts provided under a grant under this section may be 
     used only for affordable housing activities that are 
     consistent with the approved local housing plan under section 
     613 for the grant beneficiary on whose behalf the grant is 
     made.
       (f) Administrative Expenses.--
       (1) In general.--The Secretary shall, by regulation, 
     authorize each recipient to use a percentage of any grant 
     amounts received under this title for any administrative and 
     planning expenses of the recipient relating to carrying out 
     this title and activities assisted with such amounts, which 
     may include costs for salaries of individuals engaged in 
     administering and managing affordable housing activities 
     assisted with grant amounts provided under this title and 
     expenses of preparing a local housing plan under section 612.
       (2) Contents of regulations.--The regulations referred to 
     in paragraph (1) shall provide that--
       (A) the Secretary shall, for each recipient, establish a 
     percentage referred to in paragraph (1) based on the specific 
     circumstances of the recipient and the tribes served by the 
     recipient; and
       (B) the Secretary may review the percentage for a recipient 
     upon the written request of the recipient specifying the need 
     for such review or the initiative of the Secretary and, 
     pursuant to such review, may revise the percentage 
     established for the recipient.
       (g) Public-Private Partnerships.--Each recipient shall make 
     all reasonable efforts, consistent with the purposes of this 
     title, to maximize participation by the private sector, 
     including nonprofit organizations and for-profit entities, in 
     implementing the approved local housing plan for the tribe 
     that is the grant beneficiary.

     SEC. 612. LOCAL HOUSING PLANS.

       (a) In General.--
       (1) Submission.--The Secretary shall provide for an Indian 
     tribe to submit to the Secretary, for each fiscal year, a 
     local housing plan under this section for the tribe (or for 
     the tribally designated housing entity for a tribe to submit 
     the plan under subsection (e) for the tribe) and for the 
     review of such plans.
       (2) Locally driven national objectives.--A local housing 
     plan shall describe--
       (A) the mission of the tribe with respect to affordable 
     housing or, in the case of a recipient that is a tribally 
     designated housing entity, the mission of the housing entity;
       (B) the goals, objectives, and policies of the recipient to 
     meet the housing needs of low-income families in the 
     jurisdiction of the housing entity, which shall be designed 
     to achieve the national objectives under section 621(a); and
       (C) how the locally established mission and policies of the 
     recipient are designed to achieve, and are consistent with, 
     the national objectives under section 621(a).
       (b) 5-Year Plan.--Each local housing plan under this 
     section for an Indian tribe shall contain, with respect to 
     the 5-year period beginning with the fiscal year for which 
     the plan is submitted, the following information:
       (1) Locally driven national objectives.--The information 
     described in subsection (a)(2).
       (2) Capital improvement overview.--If the recipient will 
     provide capital improvements for housing described in 
     subsection (c)(3) during such period, an overview of such 
     improvements, the rationale for such improvements, and an 
     analysis of how such improvements will enable the recipient 
     to meet its goals, objectives, and mission.
       (c) 1-year plan.--A local housing plan under this section 
     for an Indian tribe shall contain the following information 
     relating to the upcoming fiscal year for which the assistance 
     under this title is to be made available:
       (1) Financial resources.--An operating budget for the 
     recipient for the tribe that includes--
       (A) identification and a description of the financial 
     resources reasonably available to the recipient to carry out 
     the purposes of this title, including an explanation of how 
     amounts made available will leverage such additional 
     resources; and
       (B) the uses to which such resources will be committed, 
     including eligible and required affordable housing activities 
     under subtitle B to be assisted and administrative expenses.
       (2) Affordable housing.--For the jurisdiction within which 
     the recipient is authorized to use assistance under this 
     title--
       (A) a description of the estimated housing needs and the 
     need for assistance for very low-income and moderate-income 
     families;
       (B) a description of the significant characteristics of the 
     housing market, indicating how such characteristics will 
     influence the use of amounts made available under this title 
     for rental assistance, production of new units, 
     rehabilitation of old units, or acquisition of existing 
     units;
       (C) an description of the structure, means of cooperation, 
     and coordination between the recipient and any units of 
     general local government in the development, submission, and 
     implementation of their housing plans, including a 
     description of the involvement of any private industries, 
     nonprofit organizations, and public institutions;
       (D) a description of how the plan will address the housing 
     needs identified pursuant to subparagraph (A), describing the 
     reasons for allocation priorities, and identify any obstacles 
     to addressing underserved needs;
       (E) a description of any homeownership programs of the 
     recipient to be carried out with respect to affordable 
     housing assisted under this title and the requirements and 
     assistance available under such programs;
       (F) a certification that the recipient will maintain 
     written records of the standards and procedures under which 
     the recipient will monitor activities assisted under this 
     title and ensure long-term compliance with the provisions of 
     this title;
       (G) a certification that the recipient will comply with 
     title II of the Civil Rights Act of 1968 in carrying out this 
     title, to the extent that such title is applicable;
       (H) a statement of the number of families for whom the 
     recipient will provide affordable housing using grant amounts 
     provided under this title;
       (I) a statement of how the goals, programs, and policies 
     for producing and preserving affordable housing will be 
     coordinated with other programs and services for which the 
     recipient is responsible and the extent to which they will 
     reduce (or assist in reducing) the number of households with 
     incomes below the poverty line; and
       (J) a certification that the recipient has obtain insurance 
     coverage for any housing units that are owned or operated by 
     the tribe or the tribally designated housing entity for the 
     tribe and assisted with amounts provided under this Act, in 
     compliance with such requirements as the Secretary may 
     establish.
       (3) Indian housing developed under united states housing 
     act of 1937.--A plan describing how the recipient for the 
     tribe will comply with the requirements under section 623 
     relating to low-income housing owned or

[[Page H4507]]

     operated by the housing entity that was developed pursuant to 
     a contract between the Secretary and an Indian housing 
     authority pursuant to the United States Housing Act of 1937, 
     which shall include--
       (A) a certification that the recipient will maintain a 
     written record of the policies of the recipient governing 
     eligibility, admissions, and occupancy of families with 
     respect to dwelling units in such housing;
       (B) a certification that the recipient will maintain a 
     written record of policies of the recipient governing rents 
     charged for dwelling units in such housing, including--
       (i) the methods by which such rents are determined; and
       (ii) an analysis of how such methods affect--

       (I) the ability of the recipient to provide affordable 
     housing for low-income families having a broad range of 
     incomes;
       (II) the affordability of housing for families having 
     incomes that do not exceed 30 percent of the median family 
     income for the area; and
       (III) the availability of other financial resources to the 
     recipient for use for such housing;

       (C) a certification that the recipient will maintain a 
     written record of the standards and policies of the recipient 
     governing maintenance and management of such housing, and 
     management of the recipient with respect to administration of 
     such housing, including--
       (i) housing quality standards;
       (ii) routine and preventative maintenance policies;
       (iii) emergency and disaster plans;
       (iv) rent collection and security policies;
       (v) priorities and improvements for management of the 
     housing; and
       (vi) priorities and improvements for management of the 
     recipient, including improvement of electronic information 
     systems to facilitate managerial capacity and efficiency;
       (D) a plan describing--
       (i) the capital improvements necessary to ensure long-term 
     physical and social viability of such housing; and
       (ii) the priorities of the recipient for capital 
     improvements of such housing based on analysis of available 
     financial resources, consultation with residents, and health 
     and safety considerations;
       (E) a description of any such housing to be demolished or 
     disposed of, a timetable for such demolition or disposition, 
     and any information required under law with respect to such 
     demolition or disposition;
       (F) a description of how the recipient will coordinate with 
     tribal and State welfare agencies to ensure that residents of 
     such housing will be provided with access to resources to 
     assist in obtaining employment and achieving self-
     sufficiency; and
       (G) a description of the requirements established by the 
     recipient that promote the safety of residents of such 
     housing, facilitate the housing entity undertaking crime 
     prevention measures (such as community policing, where 
     appropriate), allow resident input and involvement, and allow 
     for creative methods to increase resident safety by 
     coordinating crime prevention efforts between the recipient 
     and tribal or local law enforcement officials.
       (4) Indian housing loan guarantees and other housing 
     assistance.--A description of how loan guarantees under 
     section 184 of the Housing and Community Development Act of 
     1992, and other housing assistance provided by the Federal 
     Government for Indian tribes (including grants, loans, and 
     mortgage insurance) will be used to help in meeting the needs 
     for affordable housing in the jurisdiction of the recipient.
       (5) Distribution of assistance.--A certification that the 
     recipient for the tribe will maintain a written record of--
       (A) the geographical distribution (within the jurisdiction 
     of the recipient) of the use of grant amounts and how such 
     geographical distribution is consistent with the geographical 
     distribution of housing need (within such jurisdiction); and
       (B) the distribution of the use of such assistance for 
     various categories of housing and how use for such various 
     categories is consistent with the priorities of housing need 
     (within the jurisdiction of the recipient).
       (d) Participation of Tribally Designated Housing Entity.--A 
     plan under this section for an Indian tribe may be prepared 
     and submitted on behalf of the tribe by the tribally 
     designated housing entity for the tribe, but only if such 
     plan contains a certification by the recognized tribal 
     government of the grant beneficiary that such tribe has had 
     an opportunity to review the plan and has authorized the 
     submission of the plan by the housing entity.
       (e) Coordination of Plans.--A plan under this section may 
     cover more than 1 Indian tribe, but only if the certification 
     requirements under subsection (d) are complied with by each 
     such grant beneficiary covered.
       (f) Plans for Small Tribes.--
       (1) Separate requirements.--The Secretary shall establish 
     requirements for submission of plans under this section and 
     the information to be included in such plans applicable to 
     small Indian tribes and small tribally designated housing 
     entities. Such requirements shall waive any requirements 
     under this section that the Secretary determines are 
     burdensome or unnecessary for such tribes and housing 
     entities.
       (2) Small tribes.--The Secretary shall define small Indian 
     tribes and small tribally designated housing entities based 
     on the number of dwelling units assisted under this 
     subtitle by the tribe or housing entity or owned or 
     operated pursuant to a contract under the United States 
     Housing Act of 1937 between the Secretary and the Indian 
     housing authority for the tribe.
       (g) Regulations.--The requirements relating to the contents 
     of plans under this section shall be established by 
     regulation, pursuant to section 616.

     SEC. 613. REVIEW OF PLANS.

       (a) Review and Notice.--
       (1) Review.--The Secretary shall conduct a limited review 
     of each local housing plan submitted to the Secretary to 
     ensure that the plan complies with the requirements of 
     section 612. The Secretary shall have the discretion to 
     review a plan only to the extent that the Secretary considers 
     review is necessary.
       (2) Notice.--The Secretary shall notify each Indian tribe 
     for which a plan is submitted and any tribally designated 
     housing entity for the tribe whether the plan complies with 
     such requirements not later than 45 days after receiving the 
     plan. If the Secretary does not notify the Indian tribe, as 
     required under this subsection and subsection (b), the plan 
     shall be considered, for purposes of this title, to have been 
     determined to comply with the requirements under section 612 
     and the tribe shall be considered to have been notified of 
     compliance upon the expiration of such 45-day period.
       (b) Notice of Reasons for Determination of Noncompliance.--
     If the Secretary determines that a plan, as submitted, does 
     not comply with the requirements under section 612, the 
     Secretary shall specify in the notice under subsection (a) 
     the reasons for the noncompliance and any modifications 
     necessary for the plan to meet the requirements under section 
     612.
       (c) Standards for Determination of Noncompliance.--The 
     Secretary may determine that a plan does not comply with the 
     requirements under section 612 only if--
       (1) the plan is not consistent with the national objectives 
     under section 621(a);
       (2) the plan is incomplete in significant matters required 
     under such section;
       (3) there is evidence available to the Secretary that 
     challenges, in a substantial manner, any information provided 
     in the plan;
       (4) the Secretary determines that the plan violates the 
     purposes of this title because it fails to provide affordable 
     housing that will be viable on a long-term basis at a 
     reasonable cost; or
       (5) the plan fails to adequately identify the capital 
     improvement needs for low-income housing owned or operated by 
     the Indian tribe that was developed pursuant to a contract 
     between the Secretary and an Indian housing authority 
     pursuant to the United States Housing Act of 1937.
       (d) Treatment of Existing Plans.--Notwithstanding any other 
     provision of this title, a plan shall be considered to have 
     been submitted for an Indian tribe if the appropriate Indian 
     housing authority has submitted to the Secretary a 
     comprehensive plan under section 14(e) of the United States 
     Housing Act of 1937 (as in effect immediately before the 
     enactment of this title) or under the comprehensive 
     improvement assistance program under such section 14, and the 
     Secretary has approved such plan, before January 1, 1997. The 
     Secretary shall provide specific procedures and requirements 
     for such tribes to amend such plans by submitting only such 
     additional information as is necessary to comply with the 
     requirements of section 612.
       (e) Updates to Plan.--After a plan under section 612 has 
     been submitted for an Indian tribe for any fiscal year, the 
     tribe may comply with the provisions of such section for any 
     succeeding fiscal year (with respect to information included 
     for the 5-year period under section 612(b) or the 1-year 
     period under section 612(c)) by submitting only such 
     information regarding such changes as may be necessary to 
     update the plan previously submitted.

     SEC. 614. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

       (a) Program Income.--
       (1) Authority to retain.--Notwithstanding any other 
     provision of law, a recipient may retain any program income 
     that is realized from any grant amounts under this title if--
       (A) such income was realized after the initial disbursement 
     of the grant amounts received by the recipient; and
       (B) the recipient has agreed that it will utilize the 
     program income for affordable housing activities in 
     accordance with the provisions of this title.
       (2) Prohibition of reduction of grant.--The Secretary may 
     not reduce the grant amount for any Indian tribe based solely 
     on (1) whether the recipient for the tribe retains program 
     income under paragraph (1), or (2) the amount of any such 
     program income retained.
       (3) Exclusion of amounts.--The Secretary may, by 
     regulation, exclude from consideration as program income any 
     amounts determined to be so small that compliance with the 
     requirements of this subsection would create an unreasonable 
     administrative burden on the recipient.
       (b) Treatment of Labor Standards.--The use of amounts 
     provided under this title to finance (in whole or in part) a 
     contract for construction or rehabilitation work shall not 
     cause such contract to be subject to the requirements of the 
     Act of March 3, 1931 (40 U.S.C. 276a-276a-5; commonly known 
     as the

[[Page H4508]]

     Davis-Bacon Act) or to any other provision of law requiring 
     payment of wages in accordance with such Act.

     SEC. 615. ENVIRONMENTAL REVIEW.

       (a) In General.--In order to ensure that the policies of 
     the National Environmental Policy Act of 1969 and other 
     provisions of law which further the purposes of such Act (as 
     specified in regulations issued by the Secretary) are most 
     effectively implemented in connection with the expenditure of 
     grant amounts provided under this title, and to ensure to the 
     public undiminished protection of the environment, the 
     Secretary, in lieu of the environmental protection procedures 
     otherwise applicable, may under regulations provide for the 
     release of amounts for particular projects to recipients of 
     assistance under this title who assume all of the 
     responsibilities for environmental review, decisionmaking, 
     and action pursuant to such Act, and such other provisions of 
     law as the regulations of the Secretary specify, that would 
     apply to the Secretary were the Secretary to undertake such 
     projects as Federal projects. The Secretary shall issue 
     regulations to carry out this section only after consultation 
     with the Council on Environmental Quality. The regulations 
     shall provide--
       (1) for the monitoring of the environmental reviews 
     performed under this section;
       (2) in the discretion of the Secretary, to facilitate 
     training for the performance of such reviews; and
       (3) for the suspension or termination of the assumption of 
     responsibilities under this section.

     The Secretary's duty under the preceding sentence shall not 
     be construed to limit or reduce any responsibility assumed by 
     a recipient of grant amounts with respect to any particular 
     release of funds.
       (b) Procedure.--The Secretary shall approve the release of 
     funds subject to the procedures authorized by this section 
     only if, at least 15 days prior to such approval and prior to 
     any commitment of funds to such projects the recipient of 
     grant amounts has submitted to the Secretary a request for 
     such release accompanied by a certification which meets the 
     requirements of subsection (c). The Secretary's approval of 
     any such certification shall be deemed to satisfy the 
     Secretary's responsibilities under the National Environmental 
     Policy Act of 1969 and such other provisions of law as the 
     regulations of the Secretary specify insofar as those 
     responsibilities relate to the releases of funds for projects 
     to be carried out pursuant thereto which are covered by such 
     certification.
       (c) Certification.--A certification under the procedures 
     authorized by this section shall--
       (1) be in a form acceptable to the Secretary,
       (2) be executed by the chief executive officer or other 
     officer of the recipient of assistance under this title 
     qualified under regulations of the Secretary,
       (3) specify that the recipient has fully carried out its 
     responsibilities as described under subsection (a), and
       (4) specify that the certifying officer (A) consents to 
     assume the status of a responsible Federal official under the 
     National Environmental Policy Act of 1969 and each provision 
     of law specified in regulations issued by the Secretary 
     insofar as the provisions of such Act or such other 
     provisions of law apply pursuant to subsection (a), and (B) 
     is authorized and consents on behalf of the recipient of 
     assistance and such officer to accept the jurisdiction of the 
     Federal courts for the purpose of enforcement of the 
     certifying officer's responsibilities as such an official.

     SEC. 616. REGULATIONS.

       (a) Interim Requirements.--Not later than 90 days after the 
     date of the enactment of this title, the Secretary shall, by 
     notice issued in the Federal Register, establish any 
     requirements necessary to carry out this title in the manner 
     provided in section 617(b), which shall be effective only for 
     fiscal year 1997. The notice shall invite public comments 
     regarding such interim requirements and final regulations to 
     carry out this title and shall include general notice of 
     proposed rulemaking (for purposes of section 564(a) of title 
     5, United States Code) of the final regulations under 
     paragraph (2).
       (b) Final Regulations.--
       (1) Timing.--The Secretary shall issue final regulations 
     necessary to carry out this title not later than September 1, 
     1997, and such regulations shall take effect not later than 
     the effective date under section 617(a).
       (2) Negotiated rulemaking.--Notwithstanding sections 563(a) 
     and 565(a) of title 5, United States Code, the final 
     regulations required under paragraph (1) shall be issued 
     according to a negotiated rulemaking procedure under 
     subchapter III of chapter 5 of title 5, United States Code. 
     The Secretary shall establish a negotiated rulemaking 
     committee for development of any such proposed regulations, 
     which shall include representatives of Indian tribes.

     SEC. 617. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b) and 
     as otherwise specifically provided in this title, this title 
     shall take effect on October 1, 1997.
       (b) Interim Applicability.--For fiscal year 1997, this 
     title shall apply to any Indian tribe that requests the 
     Secretary to apply this title to such tribe, subject to the 
     provisions of this subsection, but only if the Secretary 
     determines that the tribe has the capacity to carry out the 
     responsibilities under this title during such fiscal year. 
     For fiscal year 1997, this title shall apply to any such 
     tribe subject to the following limitations:
       (1) Use of assistance amounts as block grant.--Amounts 
     shall not be made available pursuant to this title for grants 
     under this title for such fiscal year, but any amounts made 
     available for the tribe under the United States Housing Act 
     of 1937, title II or subtitle D of title IV of the Cranston-
     Gonzalez National Affordable Housing Act, title IV of the 
     Stewart B. McKinney Homeless Assistance Act, or section 2 of 
     the HUD Demonstration Act of 1993 shall be considered grant 
     amounts under this title and shall be used subject to the 
     provisions of this title relating to such grant amounts.
       (2) Local housing plan.--Notwithstanding section 613 of 
     this title, a local housing plan shall be considered to have 
     been submitted for the tribe for fiscal year 1997 for 
     purposes of this title only if--
       (A) the appropriate Indian housing authority has submitted 
     to the Secretary a comprehensive plan under section 14(e) of 
     the United States Housing Act of 1937 or under the 
     comprehensive improvement assistance program under such 
     section 14;
       (B) the Secretary has approved such plan before January 1, 
     1996; and
       (C) the tribe complies with specific procedures and 
     requirements for amending such plan as the Secretary may 
     establish to carry out this subsection.
       (c) Assistance Under Existing Program During Fiscal Year 
     1997.--Notwithstanding the repeal of any provision of law 
     under section 501(a) and with respect only to Indian tribes 
     not provided assistance pursuant to subsection (b), during 
     fiscal year 1997--
       (1) the Secretary shall carry out programs to provide low-
     income housing assistance on Indian reservations and other 
     Indian areas in accordance with the provisions of title II of 
     the United States Housing Act of 1937 and related provisions 
     of law, as in effect immediately before the enactment of this 
     Act;
       (2) except to the extent otherwise provided in the 
     provisions of such title II (as so in effect), the provisions 
     of title I of such Act (as so in effect) and such related 
     provisions of law shall apply to low-income housing developed 
     or operated pursuant to a contract between the Secretary and 
     an Indian housing authority; and
       (3) none of the provisions of title I, II, III, or IV, or 
     of any other law specifically modifying the public housing 
     program that is enacted after the date of the enactment of 
     this Act, shall apply to public housing operated pursuant to 
     a contract between the Secretary and an Indian housing 
     authority, unless the provision explicitly provides for such 
     applicability.

     SEC. 618. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for grants under 
     subtitle A $650,000,000, for each of fiscal years 1998, 1999, 
     2000, and 2001.
               Subtitle B--Affordable Housing Activities

     SEC. 621. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.

       (a) Primary Objective.--The national objectives of this 
     title are--
       (1) to assist and promote affordable housing activities to 
     develop, maintain, and operate safe, clean, and healthy 
     affordable housing on Indian reservations and in other Indian 
     areas for occupancy by low-income Indian families;
       (2) to ensure better access to private mortgage markets for 
     Indian tribes and their members and to promote self-
     sufficiency of Indian tribes and their members;
       (3) to coordinate activities to provide housing for Indian 
     tribes and their members with Federal, State, and local 
     activities to further economic and community development for 
     Indian tribes and their members;
       (4) to plan for and integrate infrastructure resources for 
     Indian tribes with housing development for tribes; and
       (5) to promote the development of private capital markets 
     in Indian country and to allow such markets to operate and 
     grow, thereby benefiting Indian communities.
       (b) Eligible Families.--
       (1) In General.--Except as provided under paragraph (2), 
     assistance under eligible housing activities under this title 
     shall be limited to low-income Indian families on Indian 
     reservations and other Indian areas.
       (2) Exception to Low-Income Requirement.--A recipient may 
     provide assistance for model activities under section 
     622(a)(6) to families who are not low-income families, if the 
     Secretary approves the activities pursuant to such subsection 
     because there is a need for housing for such families that 
     cannot reasonably be met without such assistance. The 
     Secretary shall establish limits on the amount of assistance 
     that may be provided under this title for activities for 
     families who are not low-income families.
       (3) Non-indian families.--A recipient may provide housing 
     or housing assistance provided through affordable housing 
     activities assisted with grant amounts under this title for a 
     non-Indian family on an Indian reservation or other Indian 
     area if the recipient determines that the presence of the 
     family on the Indian reservation or other Indian area is 
     essential to the well-being of Indian families and the need 
     for housing for the family cannot reasonably be met without 
     such assistance.
       (4) Preference for indian families.--The local housing plan 
     for an Indian tribe may require preference, for housing or 
     housing assistance provided through affordable housing 
     activities assisted with grant amounts provided under this 
     title on behalf of such tribe,

[[Page H4509]]

     to be given (to the extent practicable) to Indian families 
     who are members of such tribe, or to other Indian families. 
     In any case in which the applicable local housing plan for an 
     Indian tribe provides for preference under this subsection, 
     the recipient for the tribe shall ensure that housing 
     activities that are assisted with grant amounts under this 
     title for such tribe are subject to such preference.
       (5) Exemption.--Title VI of the Civil Rights Act of 1964 
     and title VIII of the Civil Rights Act of 1968 shall not 
     apply to actions by Indian tribes under this subsection.

     SEC. 622. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

       Affordable housing activities under this subtitle are 
     activities, in accordance with the requirements of this 
     subtitle, to develop or to support affordable housing for 
     rental or homeownership, or to provide housing services with 
     respect to affordable housing, through the following 
     activities:
       (1) Indian housing assistance.--The provision of 
     modernization or operating assistance for housing previously 
     developed or operated pursuant to a contract between the 
     Secretary and an Indian housing authority.
       (2) Development.--The acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing, which may include real property 
     acquisition, site improvement, development of utilities and 
     utility services, conversion, demolition, financing, 
     administration and planning, and other related activities.
       (3) Housing services.--The provision of housing-related 
     services for affordable housing, such as housing counseling 
     in connection with rental or homeownership assistance, energy 
     auditing, and other services related to assisting owners, 
     tenants, contractors, and other entities, participating or 
     seeking to participate in other housing activities assisted 
     pursuant to this section.
       (4) Housing management services.--The provision of 
     management services for affordable housing, including 
     preparation of work specifications, loan processing, 
     inspections, tenant selection, management of tenant-based 
     rental assistance, and management of affordable housing 
     projects.
       (5) Crime prevention and safety activities.--The provision 
     of safety, security, and law enforcement measures and 
     activities appropriate to protect residents of affordable 
     housing from crime.
       (6) Model activities.--Housing activities under model 
     programs that are designed to carry out the purposes of this 
     title and are specifically approved by the Secretary as 
     appropriate for such purpose.

     SEC. 623. REQUIRED AFFORDABLE HOUSING ACTIVITIES.

       (a) Maintenance of Operating Assistance for Indian 
     Housing.--Any recipient who owns or operates (or is 
     responsible for funding any entity that owns or operates) 
     housing developed or operated pursuant to a contract between 
     the Secretary and an Indian housing authority pursuant to the 
     United States Housing Act of 1937 shall, using amounts of any 
     grants received under this title, reserve and use for 
     operating assistance under section 622(1) such amounts as may 
     be necessary to provide for the continued maintenance and 
     efficient operation of such housing.
       (b) Demolition and Disposition.--This title may not be 
     construed to prevent any recipient (or entity funded by a 
     recipient) from demolishing or disposing of Indian housing 
     referred to in such subsection. Notwithstanding section 114, 
     section 261 shall apply to the demolition or disposition of 
     Indian housing referred to in subsection (a).

     SEC. 624. TYPES OF INVESTMENTS.

       (a) In General.--Subject to section 623 and the local 
     housing plan for an Indian tribe, the recipient for such 
     tribe shall have--
       (1) the discretion to use grant amounts for affordable 
     housing activities through equity investments, interest-
     bearing loans or advances, noninterest-bearing loans or 
     advances, interest subsidies, leveraging of private 
     investments under subsection (b), or any other form of 
     assistance that the Secretary has determined to be consistent 
     with the purposes of this title; and
       (2) the right to establish the terms of assistance.
       (b) Leveraging Private Investment.--A recipient may 
     leverage private investments in affordable housing activities 
     by pledging existing or future grant amounts to assure the 
     repayment of notes and other obligations of the recipient 
     issued for purposes of carrying out affordable housing 
     activities.

     SEC. 625. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

       Housing shall qualify as affordable housing for purposes of 
     this title only if--
       (1) each dwelling unit in the housing--
       (A) in the case of rental housing, is made available for 
     occupancy only by a family that is a low-income family at the 
     time of their initial occupancy of such unit; and
       (B) in the case of housing for homeownership, is made 
     available for purchase only by a family that is a low-income 
     family at the time of purchase; and
       (2) except for housing assisted under section 202 of the 
     United States Housing Act of 1937 (as in effect before the 
     enactment of this Act), each dwelling unit in the housing 
     will remain affordable, according to binding commitments 
     satisfactory to the Secretary, for the remaining useful life 
     of the property (as determined by the Secretary) without 
     regard to the term of the mortgage or to transfer of 
     ownership, or for such other period that the Secretary 
     determines is the longest feasible period of time consistent 
     with sound economics and the purposes of this title, except 
     upon a foreclosure by a lender (or upon other transfer in 
     lieu of foreclosure) if such action (A) recognizes any 
     contractual or legal rights of public agencies, nonprofit 
     sponsors, or others to take actions that would avoid 
     termination of low-income affordability in the case of 
     foreclosure or transfer in lieu of foreclosure, and (B) is 
     not for the purpose of avoiding low-income affordability 
     restrictions, as determined by the Secretary.

     SEC. 626. CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING 
                   REQUIREMENTS.

       With respect to housing assisted with grant amounts 
     provided under this title, the requirements of section 102(d) 
     of the Department of Housing and Urban Development Reform Act 
     of 1989 shall be considered to be satisfied upon 
     certification by the recipient of the assistance to the 
     Secretary that the combination of Federal assistance provided 
     to any housing project is not any more than is necessary to 
     provide affordable housing.

     SEC. 627. LEASE REQUIREMENTS AND TENANT SELECTION.

       (a) Leases.--Except to the extent otherwise provided by or 
     inconsistent with tribal law, in renting dwelling units in 
     affordable housing assisted with grant amounts provided under 
     this title, the owner or manager of the housing shall utilize 
     leases that--
       (1) do not contain unreasonable terms and conditions;
       (2) require the owner or manager to maintain the housing in 
     compliance with applicable housing codes and quality 
     standards;
       (3) require the owner or manager to give adequate written 
     notice of termination of the lease, which shall not be less 
     than--
       (A) the period provided under the applicable law of the 
     jurisdiction or 14 days, whichever is less, in the case of 
     nonpayment of rent;
       (B) a reasonable period of time, but not to exceed 14 days, 
     when the health or safety of other residents or employees of 
     the owner or manager is threatened; and
       (C) the period of time provided under the applicable law of 
     the jurisdiction, in any other case;
       (4) require that the owner or manager may not terminate the 
     tenancy except for violation of the terms or conditions of 
     the lease, violation of applicable Federal, tribal, State, or 
     local law, or for other good cause; and
       (5) provide that the owner or manager may terminate the 
     tenancy of a resident for any activity, engaged in by the 
     resident, any member of the resident's household, or any 
     guest or other person under the resident's control, that--
       (A) threatens the health or safety of, or right to peaceful 
     enjoyment of the premises by, other residents or employees of 
     the owner or manager of the housing;
       (B) threatens the health or safety of, or right to peaceful 
     enjoyment of their premises by, persons residing in the 
     immediate vicinity of the premises; or
       (C) is criminal activity (including drug-related criminal 
     activity).
       (b) Tenant Selection.--The owner or manager of affordable 
     rental housing assisted under with grant amounts provided 
     under this title shall adopt and utilize written tenant 
     selection policies and criteria that--
       (1) are consistent with the purpose of providing housing 
     for low-income families;
       (2) are reasonably related to program eligibility and the 
     applicant's ability to perform the obligations of the lease; 
     and
       (3) provide for (A) the selection of tenants from a written 
     waiting list in accordance with the policies and goals set 
     forth in the local housing plan for the tribe that is the 
     grant beneficiary of such grant amounts, and (B) the prompt 
     notification in writing of any rejected applicant of the 
     grounds for any rejection.

     SEC. 628. REPAYMENT.

       If a recipient uses grant amounts to provide affordable 
     housing under activities under this subtitle and, at any time 
     during the useful life of the housing the housing does not 
     comply with the requirement under section 625(a)(2), the 
     Secretary shall reduce future grant payments on behalf of the 
     grant beneficiary by an amount equal to the grant amounts 
     used for such housing (under the authority under section 
     651(a)(2)) or require repayment to the Secretary of an amount 
     equal to such grant amounts.

     SEC. 629. CONTINUED USE OF AMOUNTS FOR AFFORDABLE HOUSING.

       Any funds for programs for low-income housing under the 
     United States Housing Act of 1937 that, on the date of the 
     applicability of this title to an Indian tribe, are owned by, 
     or in the possession or under the control of, the Indian 
     housing authority for the tribe, including all reserves not 
     otherwise obligated, shall be considered assistance under 
     this title and subject to the provisions of this title 
     relating to use of such assistance.
                Subtitle C--Allocation of Grant Amounts

     SEC. 641. ANNUAL ALLOCATION.

       For each fiscal year, the Secretary shall allocate any 
     amounts made available for assistance under this title for 
     the fiscal year, in accordance with the formula established 
     pursuant to section 642, among Indian tribes that comply with 
     the requirements under this title for a grant under this 
     title.

     SEC. 642. ALLOCATION FORMULA.

       The Secretary shall, by regulations issued in the manner 
     provided under section 616, establish a formula to provide 
     for allocating

[[Page H4510]]

     amounts available for a fiscal year for block grants under 
     this title among Indian tribes. The formula shall be based on 
     factors that reflect the need of the Indian tribes and the 
     Indian areas of the tribes for assistance for affordable 
     housing activities, including the following factors:
       (1) The number of low-income housing dwelling units owned 
     or operated at the time pursuant to a contract between an 
     Indian housing authority for the tribe and the Secretary.
       (2) The extent of poverty and economic distress within 
     Indian areas of the tribe.
       (3) Other objectively measurable conditions as the 
     Secretary may specify.
       The regulations establishing the formula shall be issued 
     not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this title.
              Subtitle D--Compliance, Audits, and Reports

     SEC. 651. REMEDIES FOR NONCOMPLIANCE.

       (a) Actions by Secretary Affecting Grant Amounts.--Except 
     as provided in subsection (b), if the Secretary finds after 
     reasonable notice and opportunity for hearing that a 
     recipient of assistance under this title has failed to comply 
     substantially with any provision of this title, the Secretary 
     shall--
       (1) terminate payments under this title to the recipient;
       (2) reduce payments under this title to the recipient by an 
     amount equal to the amount of such payments which were not 
     expended in accordance with this title;
       (3) limit the availability of payments under this title to 
     programs, projects, or activities not affected by such 
     failure to comply; or
       (4) in the case of noncompliance described in section 
     652(b), provide a replacement tribally designated housing 
     entity for the recipient, under section 652.

     If the Secretary takes an action under paragraph (1), (2), or 
     (3), the Secretary shall continue such action until the 
     Secretary determines that the failure to comply has ceased.
       (b) Noncompliance Because of Technical Incapacity.--If the 
     Secretary makes a finding under subsection (a), but 
     determines that the failure to comply substantially with the 
     provisions of this title--
       (1) is not a pattern or practice of activities constituting 
     willful noncompliance, and
       (2) is a result of the limited capability or capacity of 
     the recipient,

     the Secretary may provide technical assistance for the 
     recipient (directly or indirectly) that is designed to 
     increase the capability and capacity of the recipient to 
     administer assistance provided under this title in 
     compliance with the requirements under this title.
       (c) Referral for Civil Action.--
       (1) Authority.--In lieu of, or in addition to, any action 
     authorized by subsection (a), the Secretary may, if the 
     Secretary has reason to believe that a recipient has failed 
     to comply substantially with any provision of this title, 
     refer the matter to the Attorney General of the United States 
     with a recommendation that an appropriate civil action be 
     instituted.
       (2) Civil action.--Upon such a referral, the Attorney 
     General may bring a civil action in any United States 
     district court having venue thereof for such relief as may be 
     appropriate, including an action to recover the amount of the 
     assistance furnished under this title which was not expended 
     in accordance with it, or for mandatory or injunctive relief.
       (d) Review.--
       (1) In general.--Any recipient who receives notice under 
     subsection (a) of the termination, reduction, or limitation 
     of payments under this title may, within 60 days after 
     receiving such notice, file with the United States Court of 
     Appeals for the circuit in which such State is located, or in 
     the United States Court of Appeals for the District of 
     Columbia, a petition for review of the Secretary's action. 
     The petitioner shall forthwith transmit copies of the 
     petition to the Secretary and the Attorney General of the 
     United States, who shall represent the Secretary in the 
     litigation.
       (2) Procedure.--The Secretary shall file in the court 
     record of the proceeding on which the Secretary based the 
     action, as provided in section 2112 of title 28, United 
     States Code. No objection to the action of the Secretary 
     shall be considered by the court unless such objection has 
     been urged before the Secretary.
       (3) Disposition.--The court shall have jurisdiction to 
     affirm or modify the action of the Secretary or to set it 
     aside in whole or in part. The findings of fact by the 
     Secretary, if supported by substantial evidence on the record 
     considered as a whole, shall be conclusive. The court may 
     order additional evidence to be taken by the Secretary, and 
     to be made part of the record. The Secretary may modify the 
     Secretary's findings of fact, or make new findings, by reason 
     of the new evidence so taken and filed with the court, and 
     the Secretary shall also file such modified or new findings, 
     which findings with respect to questions of fact shall be 
     conclusive if supported by substantial evidence on the record 
     considered as a whole, and shall also file the Secretary's 
     recommendation, if any, for the modification or setting aside 
     of the Secretary's original action.
       (4) Finality.--Upon the filing of the record with the 
     court, the jurisdiction of the court shall be exclusive and 
     its judgment shall be final, except that such judgment shall 
     be subject to review by the Supreme Court of the United 
     States upon writ of certiorari or certification as provided 
     in section 1254 of title 28, United State Code.

     SEC. 652. REPLACEMENT OF RECIPIENT.

       (a) Authority.--As a condition of the Secretary making a 
     grant under this title on behalf of an Indian tribe, the 
     tribe shall agree that, notwithstanding any other provision 
     of law, the Secretary may, only in the circumstances set 
     forth in subsection (b), require that a replacement tribally 
     designated housing entity serve as the recipient for the 
     tribe, in accordance with subsection (c).
       (b) Conditions of Removal.--The Secretary may require such 
     replacement tribally designated housing entity for a tribe 
     only upon a determination by the Secretary on the record 
     after opportunity for a hearing that the recipient for the 
     tribe has engaged in a pattern or practice of activities that 
     constitutes substantial or willful noncompliance with the 
     requirements under this title.
       (c) Choice and Term of Replacement.--If the Secretary 
     requires that a replacement tribally designated housing 
     entity serve as the recipient for a tribe (or tribes)--
       (1) the replacement entity shall be an entity mutually 
     agreed upon by the Secretary and the tribe (or tribes) for 
     which the recipient was authorized to act, except that if no 
     such entity is agreed upon before the expiration of the 60-
     day period beginning upon the date that the Secretary makes 
     the determination under subsection (b), the Secretary shall 
     act as the replacement entity until agreement is reached upon 
     a replacement entity; and
       (2) the replacement entity (or the Secretary, as provided 
     in paragraph (1)) shall act as the tribally designated 
     housing entity for the tribe (or tribes) for a period that 
     expires upon--
       (A) a date certain, which shall be specified by the 
     Secretary upon making the determination under subsection (b); 
     or
       (B) the occurrence of specific conditions, which conditions 
     shall be specified in written notice provided by the 
     Secretary to the tribe upon making the determination under 
     subsection (b).

     SEC. 653. MONITORING OF COMPLIANCE.

       (a) Enforceable Agreements.--Each recipient, through 
     binding contractual agreements with owners and otherwise, 
     shall ensure long-term compliance with the provisions of this 
     title. Such measures shall provide for (1) enforcement of the 
     provisions of this title by the grant beneficiary or by 
     recipients and other intended beneficiaries, and (2) remedies 
     for the breach of such provisions.
       (b) Periodic Monitoring.--Not less frequently than 
     annually, each recipient shall review the activities 
     conducted and housing assisted under this title to assess 
     compliance with the requirements of this title. Such review 
     shall include on-site inspection of housing to determine 
     compliance with applicable requirements. The results of each 
     review shall be included in the performance report of the 
     recipient submitted to the Secretary under section 654 and 
     made available to the public.

     SEC. 654. PERFORMANCE REPORTS.

       (a) Requirement.--For each fiscal year, each recipient 
     shall--
       (1) review the progress it has made during such fiscal year 
     in carrying out the local housing plan (or plans) for the 
     Indian tribes for which it administers grant amounts; and
       (2) submit a report to the Secretary (in a form acceptable 
     to the Secretary) describing the conclusions of the review.
       (b) Content.--Each report under this section for a fiscal 
     year shall--
       (1) describe the use of grant amounts provided to the 
     recipient for such fiscal year;
       (2) assess the relationship of such use to the goals 
     identified in the local housing plan of the grant 
     beneficiary;
       (3) indicate the recipient's programmatic accomplishments; 
     and
       (4) describe how the recipient would change its programs as 
     a result of its experiences.
       (c) Submission.--The Secretary shall establish dates for 
     submission of reports under this section, and review such 
     reports and make such recommendations as the Secretary 
     considers appropriate to carry out the purposes of this 
     title.
       (d) Public Availability.--A recipient preparing a report 
     under this section shall make the report publicly available 
     to the citizens in the recipient's jurisdiction in sufficient 
     time to permit such citizens to comment on such report prior 
     to its submission to the Secretary, and in such manner and at 
     such times as the recipient may determine. The report shall 
     include a summary of any comments received by the grant 
     beneficiary or recipient from citizens in its jurisdiction 
     regarding its program.

     SEC. 655. REVIEW AND AUDIT BY SECRETARY.

       (a) Annual Review.--The Secretary shall, at least on an 
     annual basis, make such reviews and audits as may be 
     necessary or appropriate to determine--
       (1) whether the recipient has carried out its eligible 
     activities in a timely manner, has carried out its eligible 
     activities and certifications in accordance with the 
     requirements and the primary objectives of this title and 
     with other applicable laws, and has a continuing capacity to 
     carry out those activities in a timely manner;
       (2) whether the recipient has complied with the local 
     housing plan of the grant beneficiary; and
       (3) whether the performance reports under section 654 of 
     the recipient are accurate.


[[Page H4511]]


     Reviews under this section shall include, insofar as 
     practicable, on-site visits by employees of the Department of 
     Housing and Urban Development.
       (b) Report by Secretary.--The Secretary shall submit a 
     written report to the Congress regarding each review under 
     subsection (a). The Secretary shall give a recipient not less 
     than 30 days to review and comment on a report under this 
     subsection. After taking into consideration the comments of 
     the recipient, the Secretary may revise the report and shall 
     make the recipient's comments and the report, with any 
     revisions, readily available to the public not later than 30 
     days after receipt of the recipient's comments.
       (c) Effect of Reviews.--The Secretary may make appropriate 
     adjustments in the amount of the annual grants under this 
     title in accordance with the Secretary's findings pursuant to 
     reviews and audits under this section. The Secretary may 
     adjust, reduce, or withdraw grant amounts, or take other 
     action as appropriate in accordance with the Secretary's 
     reviews and audits under this section, except that grant 
     amounts already expended on affordable housing activities may 
     not be recaptured or deducted from future assistance provided 
     on behalf of an Indian tribe.

     SEC. 656. GAO AUDITS.

       To the extent that the financial transactions of Indian 
     tribes and recipients of grant amounts under this title 
     relate to amounts provided under this title, such 
     transactions may be audited by the Comptroller General of the 
     United States under such rules and regulations as may be 
     prescribed by the Comptroller General. The representatives of 
     the General Accounting Office shall have access to all books, 
     accounts, records, reports, files, and other papers, things, 
     or property belonging to or in use by such tribes and 
     recipients pertaining to such financial transactions and 
     necessary to facilitate the audit.

     SEC. 657. REPORTS TO CONGRESS.

       (a) In General.--Not later than 90 days after the 
     conclusion of each fiscal year in which assistance under this 
     title is made available, the Secretary shall submit to the 
     Congress a report that contains--
       (1) a description of the progress made in accomplishing the 
     objectives of this title; and
       (2) a summary of the use of such funds during the preceding 
     fiscal year.
       (b) Related Reports.--The Secretary may require recipients 
     of grant amounts under this title to submit to the Secretary 
     such reports and other information as may be necessary in 
     order for the Secretary to make the report required by 
     subsection (a).
     Subtitle E--Termination of Assistance for Indian Tribes under 
                         Incorporated Programs

     SEC. 661. TERMINATION OF INDIAN PUBLIC HOUSING ASSISTANCE 
                   UNDER UNITED STATES HOUSING ACT OF 1937.

       (a) In General.--After September 30, 1997, financial 
     assistance may not be provided under the United States 
     Housing Act of 1937 or pursuant to any commitment entered 
     into under such Act, for Indian housing developed or operated 
     pursuant to a contract between the Secretary and an Indian 
     housing authority, unless such assistance is provided from 
     amounts made available for fiscal year 1997 and pursuant to a 
     commitment entered into before September 30, 1997.
       (b) Termination of Restrictions on Use of Indian Housing.--
     Except as provided in section 623(b) of this title, any 
     housing developed or operated pursuant to a contract between 
     the Secretary and an Indian housing authority pursuant to the 
     United States Housing Act of 1937 shall not be subject to any 
     provision of such Act or any annual contributions contract or 
     other agreement pursuant to such Act, but shall be considered 
     and maintained as affordable housing for purposes of this 
     title.

     SEC. 662. TERMINATION OF NEW COMMITMENTS FOR RENTAL 
                   ASSISTANCE.

       After September 30, 1997, financial assistance for rental 
     housing assistance under the United States Housing Act of 
     1937 may not be provided to any Indian housing authority or 
     tribally designated housing entity, unless such assistance is 
     provided pursuant to a contract for such assistance entered 
     into by the Secretary and the Indian housing authority before 
     such date.

     SEC. 663. TERMINATION OF YOUTHBUILD PROGRAM ASSISTANCE.

       (a) In General.--Subtitle D of title IV of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
     seq.) is amended--
       (1) by redesignating section 460 as section 461; and
       (2) by inserting after section 459 the following new 
     section:

     ``SEC. 460. INELIGIBILITY OF INDIAN TRIBES.

       ``Indian tribes, Indian housing authorities, and other 
     agencies primarily serving Indians or Indian areas shall not 
     be eligible applicants for amounts made available for 
     assistance under this subtitle for fiscal year 1997 and 
     fiscal years thereafter.''.
       (b) Effective Date and Applicability.--The amendments under 
     subsection (a) shall be made on October 1, 1997, and shall 
     apply with respect to amounts made available for assistance 
     under subtitle D of title II of the Cranston-Gonzalez 
     National Affordable Housing Act for fiscal year 1998 and 
     fiscal years thereafter.

     SEC. 664. TERMINATION OF HOME PROGRAM ASSISTANCE.

       (a) In General.--Title II of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended--
       (1) in section 217(a)--
       (A) in paragraph (1), by striking ``reserving amounts under 
     paragraph (2) for Indian tribes and after''; and
       (B) by striking paragraph (2); and
       (2) in section 288--
       (A) in subsection (a), by striking ``, Indian tribes,'';
       (B) in subsection (b), by striking ``, Indian tribe,''; and
       (C) in subsection (c)(4), by striking ``, Indian tribe,''.
       (b) Effective Date and Applicability.--The amendments under 
     subsection (a) shall be made on October 1, 1997, and shall 
     apply with respect to amounts made available for assistance 
     under title II of the Cranston-Gonzalez National Affordable 
     Housing Act for fiscal year 1998 and fiscal years thereafter.

     SEC. 665. TERMINATION OF HOUSING ASSISTANCE FOR THE HOMELESS.

       (a) McKinney Act Programs.--Title IV of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11361 et seq.) is 
     amended--
       (1) in section 411, by striking paragraph (10);
       (2) in section 412, by striking ``, and for Indian 
     tribes,'';
       (3) in section 413--
       (A) in subsection (a)--
       (i) by striking ``, and to Indian tribes,''; and
       (ii) by striking ``, or for Indian tribes'' each place it 
     appears;
       (B) in subsection (c), by striking ``or Indian tribe''; and
       (C) in subsection (d)(3)--
       (i) by striking ``, or Indian tribe'' each place it 
     appears; and
       (ii) by striking ``, or other Indian tribes,'';
       (4) in section 414(a)--
       (A) by striking `or Indian tribe'' each place it appears; 
     and
       (B) by striking ``, local government,'' each place it 
     appears and inserting ``or local government'';
       (5) in section 415(c)(4), by striking ``Indian tribes,'';
       (6) in section 416(b), by striking ``Indian tribe,'';
       (7) in section 422--
       (A) in by striking ``Indian tribe,''; and
       (B) by striking paragraph (3);
       (8) in section 441--
       (A) by striking subsection (g);
       (B) in subsection (h), by striking ``or Indian housing 
     authority''; and
       (C) in subsection (j)(1), by striking ``, Indian housing 
     authority'';
       (9) in section 462--
       (A) in paragraph (2), by striking ``, Indian tribe,''; and
       (B) by striking paragraph (4); and
       (10) in section 491(e), by striking ``, Indian tribes (as 
     such term is defined in section 102(a) of the Housing and 
     Community Development Act of 1974),''.
       (b) Innovative Homeless Demonstration.--Section 2(b) of the 
     HUD Demonstration Act of 1993 (42 U.S.C. 11301 note) is 
     amended--
       (1) in paragraph (3), by striking `` `unit of general local 
     government', and `Indian tribe' '' and inserting ``and `unit 
     of general local government' ''; and
       (2) in paragraph (4), by striking ``unit of general local 
     government (including units in rural areas), or Indian 
     tribe'' and inserting ``or unit of general local 
     government''.
       (c) Effective Date and Applicability.--The amendments under 
     subsections (a) and (b) shall be made on October 1, 1997, and 
     shall apply with respect to amounts made available for 
     assistance under title IV of the Stewart B. McKinney Homeless 
     Assistance Act and section 2 of the HUD Demonstration Act of 
     1993, respectively, for fiscal year 1998 and fiscal years 
     thereafter.

     SEC. 666. SAVINGS PROVISION.

       Except as provided in sections 661 and 662, this title may 
     not be construed to affect the validity of any right, duty, 
     or obligation of the United States or other person arising 
     under or pursuant to any commitment or agreement lawfully 
     entered into before October 1, 1997, under the United States 
     Housing Act of 1937, subtitle D of title IV of the Cranston-
     Gonzalez National Affordable Housing Act, title II of the 
     Cranston-Gonzalez National Affordable Housing Act, title IV 
     of the Stewart B. McKinney Homeless Assistance Act, or 
     section 2 of the HUD Demonstration Act of 1993.

     SEC. 667. EFFECTIVE DATE.

       Sections 661, 662, and 666 shall take effect on the date of 
     the enactment of this title.
     Subtitle F--Loan Guarantees for Affordable Housing Activities

     SEC. 671. AUTHORITY AND REQUIREMENTS.

       (a) Authority.--To such extent or in such amounts as 
     provided in appropriation Acts, the Secretary may, subject to 
     the limitations of this subtitle and upon such terms and 
     conditions as the Secretary may prescribe, guarantee and make 
     commitments to guarantee, the notes or other obligations 
     issued by Indian tribes or tribally designated housing 
     entities, for the purposes of financing affordable housing 
     activities described in section 622.
       (b) Lack of Financing Elsewhere.--A guarantee under this 
     subtitle may be used to assist an Indian tribe or housing 
     entity in obtaining financing only if the Indian tribe or 
     housing entity has made efforts to obtain such financing 
     without the use of such guarantee and cannot complete such 
     financing

[[Page H4512]]

     consistent with the timely execution of the program plans 
     without such guarantee.
       (c) Terms of Loans.--Notes or other obligations guaranteed 
     pursuant to this subtitle shall be in such form and 
     denominations, have such maturities, and be subject to such 
     conditions as may be prescribed by regulations issued by the 
     Secretary. The Secretary may not deny a guarantee under this 
     subtitle on the basis of the proposed repayment period for 
     the note or other obligation, unless the period is more than 
     20 years or the Secretary determines that the period causes 
     the guarantee to constitute an unacceptable financial risk.
       (d) Limitation on Outstanding Guarantees.--No guarantee or 
     commitment to guarantee shall be made with respect to any 
     note or other obligation if the issuer's total outstanding 
     notes or obligations guaranteed under this subtitle 
     (excluding any amount defeased under the contract entered 
     into under section 672(a)(1)) would thereby exceed an amount 
     equal to 5 times the amount of the grant approval for the 
     issuer pursuant to title III.
       (e) Prohibition of Purchase by FFB.--Notes or other 
     obligations guaranteed under this subtitle may not be 
     purchased by the Federal Financing Bank.
       (f) Prohibition of Guarantee Fees.--No fee or charge may be 
     imposed by the Secretary or any other Federal agency on or 
     with respect to a guarantee made by the Secretary under this 
     subtitle.

     SEC. 672. SECURITY AND REPAYMENT.

       (a) Requirements on Issuer.--To assure the repayment of 
     notes or other obligations and charges incurred under this 
     subtitle and as a condition for receiving such guarantees, 
     the Secretary shall require the Indian tribe or housing 
     entity issuing such notes or obligations to--
       (1) enter into a contract, in a form acceptable to the 
     Secretary, for repayment of notes or other obligations 
     guaranteed under this subtitle;
       (2) pledge any grant for which the issuer may become 
     eligible under this title;
       (3) demonstrate that the extent of such issuance and 
     guarantee under this title is within the financial capacity 
     of the tribe and is not likely to impairment the ability to 
     use of grant amounts under subtitle A, taking into 
     consideration the requirements under section 623(a); and
       (4) furnish, at the discretion of the Secretary, such other 
     security as may be deemed appropriate by the Secretary in 
     making such guarantees, including increments in local tax 
     receipts generated by the activities assisted under this 
     title or dispositions proceeds from the sale of land or 
     rehabilitated property.
       (b) Repayment From Grant Amounts.--Notwithstanding any 
     other provision of this title--
       (1) the Secretary may apply grants pledged pursuant to 
     subsection (a)(2) to any repayments due the United States as 
     a result of such guarantees; and
       (2) grants allocated under this title for an Indian tribe 
     or housing entity (including program income derived 
     therefrom) may be used to pay principal and interest due 
     (including such servicing, underwriting, and other costs as 
     may be specified in regulations issued by the Secretary) on 
     notes or other obligations guaranteed pursuant to this 
     subtitle.
       (c) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     made under this subtitle. Any such guarantee made by the 
     Secretary shall be conclusive evidence of the eligibility of 
     the obligations for such guarantee with respect to principal 
     and interest, and the validity of any such guarantee so made 
     shall be incontestable in the hands of a holder of the 
     guaranteed obligations.

     SEC. 673. PAYMENT OF INTEREST.

       The Secretary may make, and contract to make, grants, in 
     such amounts as may be approved in appropriations Acts, to or 
     on behalf of an Indian tribe or housing entity issuing notes 
     or other obligations guaranteed under this subtitle, to cover 
     not to exceed 30 percent of the net interest cost (including 
     such servicing, underwriting, or other costs as may be 
     specified in regulations of the Secretary) to the borrowing 
     entity or agency of such obligations. The Secretary may also, 
     to the extent approved in appropriation Acts, assist the 
     issuer of a note or other obligation guaranteed under this 
     subtitle in the payment of all or a portion of the principal 
     and interest amount due under the note or other obligation, 
     if the Secretary determines that the issuer is unable to pay 
     the amount because of circumstances of extreme hardship 
     beyond the control of the issuer.

     SEC. 674. TREASURY BORROWING.

       The Secretary may issue obligations to the Secretary of the 
     Treasury in an amount outstanding at any one time sufficient 
     to enable the Secretary to carry out the obligations of the 
     Secretary under guarantees authorized by this subtitle. The 
     obligations issued under this section shall have such 
     maturities and bear such rate or rates of interest as shall 
     be determined by the Secretary of the Treasury. The Secretary 
     of the Treasury is authorized and directed to purchase any 
     obligations of the Secretary issued under this section, and 
     for such purposes may use as a public debt transaction the 
     proceeds from the sale of any securities issued under chapter 
     31 of title 31, United States Code, and the purposes for 
     which such securities may be issued under such chapter are 
     extended to include the purchases of the Secretary's 
     obligations hereunder.

     SEC. 675. TRAINING AND INFORMATION.

       The Secretary, in cooperation with eligible public 
     entities, shall carry out training and information activities 
     with respect to the guarantee program under this subtitle.

     SEC. 676. LIMITATIONS ON AMOUNT OF GUARANTEES.

       (a) Aggregate Fiscal Year Limitation.--Notwithstanding any 
     other provision of law and subject only to the absence of 
     qualified applicants or proposed activities and to the 
     authority provided in this subtitle, to the extent approved 
     or provided in appropriation Acts, the Secretary shall enter 
     into commitments to guarantee notes and obligations under 
     this subtitle with an aggregate principal amount of 
     $400,000,000 for each of fiscal years 1997, 1998, 1999, 2000, 
     and 2001.
       (b) Authorization of Appropriations for Credit Subsidy.--
     There is 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 under this subtitle, 
     $40,000,000 for each of fiscal years 1997, 1998, 1999, 
     2000, and 2001.
       (c) Aggregate Outstanding Limitation.--The total amount of 
     outstanding obligations guaranteed on a cumulative basis by 
     the Secretary pursuant to this subtitle shall not at any time 
     exceed $2,000,000,000 or such higher amount as may be 
     authorized to be appropriated for this subtitle for any 
     fiscal year.
       (d) Fiscal Year Limitations on Tribes.--The Secretary shall 
     monitor the use of guarantees under this subtitle by Indian 
     tribes. If the Secretary finds that 50 percent of the 
     aggregate guarantee authority under subsection (c) has been 
     committed, the Secretary may--
       (1) impose limitations on the amount of guarantees any one 
     Indian tribe may receive in any fiscal year of $50,000,000; 
     or
       (2) request the enactment of legislation increasing the 
     aggregate limitation on guarantees under this subtitle.

     SEC. 677. EFFECTIVE DATE.

       This subtitle shall take effect upon the enactment of this 
     title.
       Subtitle G--Other Housing Assistance for Native Americans

     SEC. 681. LOAN GUARANTEES FOR INDIAN HOUSING.

       (a) Definition of Eligible Borrowers to Include Indian 
     Tribes.--Section 184 of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1515z-13a) is amended--
       (1) in subsection (a)--
       (A) by striking ``and Indian housing authorities'' and 
     inserting ``, Indian housing authorities, and Indian 
     tribes,''; and
       (B) by striking ``or Indian housing authority'' and 
     inserting ``, Indian housing authority, or Indian tribe''; 
     and
       (2) in subsection (b)(1), by striking ``or Indian housing 
     authorities'' and inserting ``, Indian housing authorities, 
     or Indian tribes''.
       (b) Need for Loan Guarantee.--Section 184(a) of the Housing 
     and Community Development Act of 1992 is amended by striking 
     ``trust land'' and inserting ``lands or as a result of a lack 
     of access to private financial markets''.
       (c) LHP Requirement.--Section 184(b)(2) of the Housing and 
     Community Development Act of 1992 is amended by inserting 
     before the period at the end the following: ``that is under 
     the jurisdiction of an Indian tribe for which a local housing 
     plan has been submitted and approved pursuant to sections 612 
     and 613 of the Native American Housing Assistance and Self-
     Determination Act of 1996 that provides for the use of loan 
     guarantees under this section to provide affordable 
     homeownership housing in such areas''.
       (d) Lender Option to Obtain Payment Upon Default Without 
     Foreclosure.--Section 184(h) of the Housing and Community 
     Development Act of 1992 is amended--
       (1) in paragraph (1)(A)--
       (A) in the first sentence of clause (i), by striking ``in a 
     court of competent jurisdiction''; and
       (B) by striking clause (ii) and inserting the following new 
     clause:
       ``(ii) No foreclosure.--Without seeking foreclosure (or in 
     any case in which a foreclosure proceeding initiated under 
     clause (i) continues for a period in excess of 1 year), the 
     holder of the guarantee may submit to the Secretary a request 
     to assign the obligation and security interest to the 
     Secretary in return for payment of the claim under the 
     guarantee. The Secretary may accept assignment of the loan if 
     the Secretary determines that the assignment is in the best 
     interests of the United States. Upon assignment, the 
     Secretary shall pay to the holder of the guarantee the pro 
     rata portion of the amount guaranteed (as determined under 
     subsection (e)). The Secretary shall be subrogated to the 
     rights of the holder of the guarantee and the holder shall 
     assign the obligation and security to the Secretary.'';
       (2) by striking paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (e) Limitation of Mortgagee Authority.--Section 184(h)(2) 
     of the Housing and Community Development Act of 1992, as so 
     redesignated by subsection (e)(3) of this section, is 
     amended--
       (1) in the first sentence, by striking ``tribal allotted or 
     trust land,'' and inserting ``restricted Indian land, the 
     mortgagee or''; and
       (B) in the second sentence, by striking ``Secretary'' each 
     place it appears, and inserting ``mortgagee or the 
     Secretary''.
       (f) Limitation on Outstanding Aggregate Principal Amount.--
     Section 184(i)(5)(C) of

[[Page H4513]]

     the Housing and Community Development Act of 1992 is amended 
     by striking ``1993'' and all that follows through ``such 
     year'' and inserting ``1997, 1998, 1999, 2000, and 2001 with 
     an aggregate outstanding principal amount note exceeding 
     $400,000,000 for each such fiscal year''.
       (g) Authorization of Appropriations for Guarantee Fund.--
     Section 184(i)(7) of the Housing and Community Development 
     Act of 1992 is amended by striking ``such sums'' and all that 
     follows through ``1994'' and inserting ``$30,000,000 for each 
     of fiscal years 1997, 1998, 1999, 2000, and 2001''.
       (h) Definitions.--Section 184(k) of the Housing and 
     Community Development Act of 1992 is amended--
       (1) in paragraph (4), by inserting after ``authority'' the 
     following: ``or Indian tribe'';
       (2) in paragraph (5)--
       (A) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) is authorized to engage in or assist in the 
     development or operation of--
       ``(i) low-income housing for Indians; or
       ``(ii) housing subject to the provisions of this section; 
     and''; and
       (B) by adding at the end the following:

     ``The term includes tribally designated housing entities 
     under the Native American Housing Assistance and Self-
     Determination Act of 1996.''; and
       (3) by striking paragraph (8) and inserting the following 
     new paragraph:
       ``(8) The term `tribe' or `Indian tribe' means any Indian 
     tribe, band, notation, or other organized group or community 
     of Indians, including any Alaska Native village or regional 
     or village corporation as defined in or established pursuant 
     to the Alaska Native Claims Settlement Act, which is 
     recognized as eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians pursuant to the Indian Self-Determination 
     and Education Assistance Act of 1975.

     SEC. 682. 50-YEAR LEASEHOLD INTEREST IN TRUST OR RESTRICTED 
                   LANDS FOR HOUSING PURPOSES.

       (a) Authority to Lease.--Notwithstanding any other 
     provision of law, any restricted Indian lands, whether 
     tribally or individually owned, may be leased by the Indian 
     owners, with the approval of the Secretary of the Interior, 
     for residential purposes.
       (b) Term.--Each lease pursuant to subsection (a) shall be 
     for a term not exceeding 50 years.
       (c) Other Conditions.--Each lease pursuant to subsection 
     (a) and each renewal of such a lease shall be made under such 
     terms and regulations as may be prescribed by the Secretary 
     of the Interior.
       (d) Rule of Construction.--This section may not be 
     construed to repeal, limit, or affect any authority to lease 
     any restricted Indian lands that--
       (1) is conferred by or pursuant to any other provision of 
     law; or
       (2) provides for leases for any period exceeding 50 years.

     SEC. 683. TRAINING AND TECHNICAL ASSISTANCE.

       There is authorized to be appropriated for assistance for 
     the a national organization representing Native American 
     housing interests for providing training and technical 
     assistance to Indian housing authorities and tribally 
     designated housing entities $2,000,000, for each of fiscal 
     years 1997, 1998, 1999, 2000, and 2001.

     SEC. 684. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle 
     shall take effect upon the enactment of this title.

                               H.R. 2406

                        Offered By: Mr. Hinchey

       Amendment No. 10: Page 76, after line 16, insert the 
     following:

     Notwithstanding any other provision of this subsection, the 
     amount paid by an elderly family or a disabled family for 
     monthly rent for a dwelling unit in public housing may not 
     exceed 30 percent of the family's adjusted monthly income.

                               H.R. 2406

                        Offered By: Mr. Hinchey

       Amendment No. 11: Page 76, after line 16, insert the 
     following:

     Notwithstanding any other provision of this subsection, the 
     amount paid by an elderly family or a disabled family for 
     monthly rent for a dwelling unit in public housing may not 
     exceed 30 percent of the family's adjusted monthly income.
       Page 157, after line 26, insert the following new 
     subsection:
       (b) Limitation.--Notwithstanding any other provision of 
     this section, the amount paid by an assisted family that is 
     an elderly family or a disabled family, for monthly rent for 
     an assisted dwelling unit bearing a gross rent that does not 
     exceed the payment standard established under section 353 for 
     a dwelling unit of the applicable size and located in the 
     market area in which such assisted dwelling unit is located, 
     may not exceed 30 percent of the family's adjusted monthly 
     income.
       Page 158, line 1, strike ``(b)'' and insert ``(c)''.
       Page 158, line 9, strike ``(c)'' and insert ``(d)''.
       Page 159, line 1, strike ``(d)'' and insert ``(e)''.
       Page 172, line 11, before the period insert the following:

     ; except that in the case of an assisted family that is an 
     elderly family or a disabled family, the amount of the 
     monthly assistance payment shall be the amount by which such 
     payment standard exceeds the lesser of the amount of the 
     resident contribution determined in accordance with section 
     322 or 30 percent of the family's adjusted monthly income

                               H.R. 2406

                        Offered By: Mr. Hinchey

       Amendment No. 12: Page 157, after line 26, insert the 
     following new subsection:
       (b) Limitation.--Notwithstanding any other provision of 
     this section, the amount paid by an assisted family that is 
     an elderly family or a disabled family, for monthly rent for 
     an assisted dwelling unit bearing a gross rent that does not 
     exceed the payment standard established under section 353 for 
     a dwelling unit of the applicable size and located in the 
     market area in which such assisted dwelling unit is located, 
     may not exceed 30 percent of the family's adjusted monthly 
     income.
       Page 158, line 1, strike ``(b)'' and insert ``(c)''.
       Page 158, line 9, strike ``(c)'' and insert ``(d)''.
       Page 159, line 1, strike ``(d)'' and insert ``(e)''.
       Page 172, line 11, before the period insert the following:

     ; except that in the case of an assisted family that is an 
     elderly family or a disabled family, the amount of the 
     monthly assistance payment shall be the amount by which such 
     payment standard exceeds the lesser of the amount of the 
     resident contribution determined in accordance with section 
     322 or 30 percent of the family's adjusted monthly income

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 13: Page 69, strike lines 18 through 23 and 
     insert the following new subsection:
       (c) Income Mix.--
       (1) LHMA income mix.--Of the public housing dwelling units 
     of a local housing and management authority made available 
     for occupancy after the date of the enactment of this Act--
       (A) not less than 40 percent shall be occupied by low-
     income families whose incomes do not exceed 30 percent of the 
     area median income, as determined by the Secretary with 
     adjustments for smaller and larger families, except that the 
     Secretary, may for purposes of this subsection, establish 
     income ceilings higher or lower than 30 percent of the median 
     for the area on the basis of the Secretary's findings that 
     such variations are necessary because of unusually high or 
     low family incomes; and
       (B) not more than 15 percent shall be occupied by low-
     income families whose incomes exceed 60 percent of the area 
     median income.
       (2) Prohibition of concentration of low-income families.--A 
     local housing and management authority may not comply with 
     the requirements under paragraph (1) by concentrating very 
     low-income families (or other families with relatively low 
     incomes) in public housing dwelling units in certain public 
     housing developments or certain buildings within 
     developments. The Secretary may review the income and 
     occupancy characteristics of the public housing developments, 
     and the buildings of such developments, of local housing and 
     management authorities to ensure compliance with the 
     provisions of this paragraph.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 14: Page 76, after line 16, insert the 
     following:

     Notwithstanding any other provision of this subsection, the 
     amount paid by a family whose head (or whose spouse) is a 
     veteran (as such term is defined in section 203(b) of the 
     National Housing Act) for monthly rent for a dwelling unit in 
     public housing may not exceed 30 percent of the family's 
     adjusted monthly income.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 15: Page 133, line 17, strike ``September 30, 
     1996'' and insert ``September 30, 2001''.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 16: Page 150, strike line 3 and all that 
     follows through line 25, insert the following:
       (b) Additional Assistance.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated, for choice-based housing assistance under 
     this title--
       (A) to be used in accordance with paragraph (2)(A), 
     $50,000,000 for fiscal year 1997, and such sums as may be 
     necessary for each subsequent fiscal year; and
       (B) to be used in accordance with paragraph (2)(B), 
     $195,000,000 for fiscal year 1997, and such sums as may be 
     necessary for each subsequent fiscal year.
       (2) Use.--
       (A) Nonelderly disabled families.--The Secretary shall 
     provide amounts made available under paragraph (1)(A) to 
     local housing and management authorities only for use to

[[Page H4514]]

     provide housing assistance under this title for nonelderly 
     disabled families (including such families relocating 
     pursuant to designation of a public housing development under 
     section 227 and other nonelderly disabled families who have 
     applied to the authority for housing assistance under this 
     title).
       (B) Welfare and homeless families.--The Secretary shall 
     provide amounts made available under paragraph (1)(B) to 
     local housing and management authorities only for use to 
     provide housing assistance under this title for, as 
     determined by the Secretary, the following families:
       (i) Families participating in programs that link housing 
     assistance to State and local welfare reform strategies for 
     the purposes of assisting families making the transition from 
     welfare to work and empowering families to choose housing in 
     locations that offer the best access to jobs, education, 
     training, and other services needed to achieve long-term 
     self-sufficiency.
       (ii) Homeless families with children.
       (iii) Other eligible families.
       (3) Allocation of amounts.--The Secretary shall allocate 
     and provide amounts made available under paragraph (1) to 
     local housing and management authorities as the Secretary 
     determines appropriate based on the relative levels of 
     need among the authorities for assistance for families 
     described in subparagraphs (A) and (B) of paragraph (2) 
     and such other relevant factors as the Secretary deems 
     appropriate.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 17: Page 152, after line 2, insert the 
     following new subsection:
       (b) Income Targeting.--Of the families initially assisted 
     under this title by a local housing and management authority 
     in any year, not less than 75 percent shall be families whose 
     incomes do not exceed 30 percent of the area median income, 
     as determined by the Secretary with adjustments for smaller 
     and larger families. The Secretary may establish income 
     ceiling higher or lower than 30 percent of the area median 
     income on the basis of the Secretary's findings that such 
     variations are necessary because of unusually high or low 
     family incomes.
       Page 152, line 3, strike ``(b)'' and insert ``(c)''.
       Page 152, line 18, strike ``(c)'' and insert ``(d)''.
       Page 153, line 11, strike ``(d)'' and insert ``(e)''.
       Page 153, line 16, strike ``(c)'' and insert ``(d)''.
       Page 154, line 11, strike ``(e)'' and insert ``(f)''.
       Page 155, line 16, strike ``(f)'' and insert ``(g)''.
       Page 156, line 1, strike ``(g)'' and insert ``(h)''.
       Page 156, line 15, strike ``(h)'' and insert ``(i)''.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 18: Page 157, after line 26, inset the 
     following new subsection:
       (b) Limitation.--Notwithstanding any other provision of 
     this section, the amount paid by an assisted family whose 
     head (or whose spouse) is a veteran (as such term is defined 
     in section 203(b) of the National Housing Act) for monthly 
     rent for an assisted dwelling unit bearing a gross rent that 
     does not exceed the payment standard established under 
     section 353 for a dwelling of the applicable size and located 
     in the market area in which such assisted dwelling unit is 
     located may not exceed 30 percent of the family's adjusted 
     monthly income.
       Page 158, line 1, strike ``(b)'' and insert ``(c)''.
       Page 158, line 9, strike ``(c)'' and insert ``(d)''.
       Page 159, line 1, strike ``(d)'' and insert ``(e)''.
       Page 172, line 9, after ``exceeds'' insert ``(A)''.
       Page 172, line 11, before the period insert the following: 
     ``, or (B) in the case of a family whose head (or whose 
     spouse) is a veteran (as such term is defined in section 
     203(b) of the National Housing Act), the lesser of the amount 
     of such resident contribution or 30 percent of the family's 
     adjusted monthly income''.

                               H.R. 2406

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 19: At the end of title V of the bill, insert 
     the following new section:

     SEC. 504. AUTHORITY FOR HUD TO RELEASE RETURN INFORMATION TO 
                   LHMA'S.

       Section 6103(a)(7)(D) of the Internal Revenue Code of 1986 
     is amended--
       (1) in clause (ix), by inserting after ``officers and 
     employees of the Department of Housing and Urban 
     Development'' the following: ``(and by officers and employees 
     of local housing and management authorities, as defined in 
     section 102 of the United States Housing Act of 1996 
     (including Indian housing authorities and recipients of 
     assistance under such Act on behalf of Indian tribes) to whom 
     the Secretary of Housing and Urban Development has made such 
     return information available)''; and
       (2) in the matter following clause (ix), by striking the 
     last sentence.

                               H.R. 2406

                   Offered by: Mr. Lazio of New York

       Amendment No. 20: Page 7, lines 9 and 10, strike ``and 
     become self-sufficient; and'' and insert the following: ``, 
     become self-sufficient, and transition out of public housing 
     and federally assisted dwelling units;''.
       Page 7, line 15, strike the period and insert ``; and''.
       Page 7, after line 15, insert the following:
       (7) remedying troubled local housing and management 
     authorities and replacing or revitalizing severely distressed 
     public housing developments.
       Page 10, line 23, after the comma insert ``as determined by 
     the Secretary with adjustments for smaller and larger 
     families,''.
       Page 13, line 7, after the comma insert ``as determined by 
     the Secretary with adjustments for smaller and larger 
     families,''.
       Page 14, line 3, strike ``or''.
       Page 14, strike line 4 and insert the following:
       (C) an entity authorized by State law to administer choice-
     based housing assistance under title III; or
       (D) an entity selected by the Secretary, pur-
       Page 14, strike line 23 and all that follows through page 
     15, line 5, and insert the following:
     ber who is an elected public housing resident member (as such 
     term is defined in paragraph (5)). If the board includes 2 or 
     more resident members, at least 1 such member shall be a 
     member of an assisted family under title III.
       Page 15, line 7, strike ``a resident member'' and insert 
     ``elected public housing resident members and resident 
     members''
       Page 16, strike lines 3 through 6.
       Page 16, line 7, strike ``(iv)'' and insert ``(iii)''.
       Page 16, line 13, strike ``(v)'' and insert ``(iv)''.
       Page 17, strike lines 4 through 10, and insert the 
     following new paragraph:
       (5) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (A) Elected public housing resident member.--The term 
     ``elected public housing resident member'' means, with 
     respect to the local housing and management authority 
     involved, an individual who is a resident member of the board 
     of directors (or other similar governing body of the 
     authority) by reason of election to such position pursuant to 
     an election--
       (i) in which eligibility for candidacy in such election is 
     limited to individuals who--

       (I) maintain their principal residence in a dwelling unit 
     of public housing administered or assisted by the authority;
       (II) have not been convicted of a felony and do not reside 
     in a household that includes an individual convicted of a 
     felony; and
       (III) have not, during the 5-year period ending upon the 
     date of such election, been convicted of a misdemeanor;

       (ii) in which only residents of dwelling units of public 
     housing administered by the authority may vote; and
       (iii) that is conducted in accordance with standards and 
     procedures for such election, which shall be established by 
     the Secretary.
       (B) Resident member.--The term ``resident member'' means a 
     member of the board of directors or other similar governing 
     body of a local housing and management authority who is a 
     resident of a public housing dwelling unit owned, 
     administered, or assisted by the authority or is a member of 
     an assisted family (as such term is defined in section 371) 
     assisted by the authority.
       Page 17, line 18, insert ``AND MEDIAN INCOME'' before the 
     last period.
       Page 17, line 19, strike ``In General'' and insert 
     ``Adjusted Income''.
       Page 19, line 1, after ``Minors'' insert ``, students, and 
     persons with disabilities''.
       Page 19, line 5, before the period insert the following: 
     ``, or who is 18 years of age or older and is a person with 
     disabilities''.
       Page 20, after line 10, insert the following new 
     subsection:
       (d) Median Income.--In determining median incomes (of 
     persons, families, or households) for an area or establishing 
     any ceilings or limits based on income under this Act, the 
     Secretary shall determine or establish area median incomes 
     and income ceilings and limits for Westchester and Rockland 
     Counties, in the State of New York, as if each such county 
     were an area not contained within the metropolitan 
     statistical area in which it is located. In determining such 
     area median incomes or establishing such income ceilings or 
     limits for the portion of such metropolitan statistical area 
     that does not include Westchester or Rockland Counties, the 
     Secretary shall determine

[[Page H4515]]

     or establish area median incomes and income ceilings and 
     limits as if such portion included Westchester and Rockland 
     Counties.
       Page 20, strike line 11 and all that follows through page 
     21, line 22, and insert the following new section:

     SEC. 105. OCCUPANCY LIMITATIONS BASED ON ILLEGAL DRUG 
                   ACTIVITY AND ALCOHOL ABUSE.

       (a) Ineligibility Because of Eviction for Drug-Related 
     Criminal Activity.--Any tenant evicted from housing assisted 
     under title II or title III by reason of drug-related 
     criminal activity (as such term is defined in section 102) 
     shall not be eligible for any housing assistance under title 
     II or title III during the 3-year period beginning on the 
     date of such eviction, unless the evicted tenant successfully 
     completes a rehabilitation program approved by the local 
     housing and management authority (which shall include a 
     waiver of this subsection if the circumstances leading to 
     eviction no longer exist).
       (b) Ineligibility of Illegal Drug Users and Alcohol 
     Abusers.--
       (1) In general.--Notwithstanding any other provision of 
     law, a local housing and management authority shall establish 
     standards for occupancy in public housing dwelling units and 
     housing assistance under title II--
       (A) that prohibit occupancy in any public housing dwelling 
     unit by, and housing assistance under title II for, any 
     person--
       (i) who the local housing and management authority 
     determines is illegally using a controlled substance; or
       (ii) if the local housing and management authority 
     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 interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by other residents of the 
     project; and
       (B) that allow the local housing and management authority 
     to terminate the tenancy in any public housing unit of, and 
     the housing assistance under title II for, any person--
       (i) who the local housing and management authority 
     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 local housing and 
     management authority 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 use of a 
     controlled substance or a pattern of abuse of alcohol, a 
     local housing and management authority 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 engaging 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).
       (c) Other Screening.--A local housing and management 
     authority may deny occupancy as provided in section 642 of 
     the Housing and Community Development Act of 1992.
       Page 22, line 4, strike ``(b)'' and insert ``(c)''.
       Page 22, strike line 8 and all that follows through line 
     13, and insert the following:

     member of the family shall contribute not less than 8 hours 
     of work per month within the community in which the family 
     resides. The requirement under this subsection shall be 
     incorporated in the terms of the tenant self-sufficiency 
     contract under subsection (b).
       (b) Tenant Self-Sufficiency Contract.--
       (1) Requirement.--Except as provided in subsection (c), 
     each local housing and management authority shall require, as 
     a condition of occupancy of a public housing dwelling unit by 
     a family and of providing housing assistance under title III 
     on behalf of a family, that each adult member of the family 
     who has custody of, or is responsible for, a minor living in 
     his or her care shall enter into a legally enforceable self-
     sufficiency contract under this section with the authority.
       (2) Contract terms.--The terms of a self-sufficiency 
     contract under this subsection shall be established pursuant 
     to consultation between the authority and the family and 
     shall include a plan for the resident's or family's residency 
     in housing assisted under this Act that provides--
       (A) a date specific by which the resident or family will 
     graduate from or terminate tenancy in such housing;
       (B) specific interim and final performance targets and 
     deadlines relating to self-sufficiency, which may relate to 
     education, school participation, substance and alcohol abuse 
     counseling, mental health support, jobs and skills training, 
     and any other factors the authority considers appropriate; 
     and
       (C) any resources, services, and assistance relating to 
     self-sufficiency to be made available to the resident or 
     family.
       (3) Incorporation into lease.--A self-sufficiency contract 
     under this subsection shall be incorporated by reference into 
     a lease under section 226 or 324, as applicable, and the 
     terms of such contract shall be terms of the lease for which 
     violation may result in--
       (A) termination of tenancy, pursuant to section 226(4) or 
     325(a)(1), as applicable; or
       (B) withholding of assistance under this Act.
     The contract shall provide that the local housing and 
     management authority or the resident who is a party to the 
     contract may enforce the contract through an administrative 
     grievance procedure under section 110.
       (4) Partnerships for self-sufficiency activities.--A local 
     housing and management authority may enter into such 
     agreements and form such partnerships as may be necessary, 
     with State and local agencies, nonprofit organizations, 
     academic institutions, and other entities who have experience 
     or expertise in providing services, activities, training, and 
     other assistance designed to facilitate low- and very-low 
     income families achieving self-sufficiency.
       (5) Changed circumstances.--A self-sufficiency contract 
     under this subsection shall provide for modification in 
     writing and that the local housing and management authority 
     may for good cause or changed circumstances waive conditions 
     under the contract.
       (6) Model contracts.--The Secretary shall, in consultation 
     with organizations and groups representing resident councils 
     and residents of housing assisted under this Act, develop a 
     model self-sufficiency contract for use under this 
     subsection. The Secretary shall provide local housing and 
     management authorities with technical assistance and advice 
     regarding such contracts.
       Page 22, line 16, strike ``requirement under subsection 
     (a)'' and insert ``requirements under subsections (a) and 
     (b)(1)''.
       Page 27, lines 19 and 20, strike ``section 110'' and insert 
     ``section 111''.
       Page 29, line 18, after ''welfare'' insert ``and other 
     appropriate''.
       Page 29, line 20, after ``welfare agencies'' insert the 
     following: ``and other appropriate Federal, State, or local 
     government agencies or nongovernment agencies or entities''.
       Page 29, line 25, strike ``requirements'' and all that 
     follows through ``ensure'' on page 30, line 1, and insert the 
     following: ``policies established by the authority that 
     increase or maintain''.
       Page 30, line 7, strike ``local law'' and insert the 
     following: ``Federal, State, and local law''.
       Page 34, line 8, strike ``or''.
       Page 30, after line 8, insert the following new paragraph:
       (13) Policies for loss of housing assistance.--A 
     description of policies of the authority requiring the loss 
     of housing assistance and tenancy under titles II and III, 
     pursuant to sections 222(e) and 321(g).
       Page 34, line 12, strike the period and insert a semicolon.
       Page 34, after line 12, insert the following new 
     paragraphs:
       (4) the plan plainly fails to adequately identify the needs 
     of low-income families for housing assistance in the 
     jurisdiction of the authority;
       (5) the plan plainly fails to adequately identify the 
     capital improvement needs for public housing developments in 
     the jurisdiction of the authority;
       (6) the activities identified in the plan are plainly 
     inappropriate to address the needs identified in the plan; or
       (7) the plan is inconsistent with the requirements of this 
     Act.
       Page 36, line 24, after the semicolon insert ``or''.
       Page 37, after line 17, insert the following new section:

     SEC. 109. REPORTING REQUIREMENTS.

       (a) Performance and Evaluation Report.--Each local housing 
     and management authority shall annually submit to the 
     Accreditation Board established under section 401, on a date 
     determined by such Board, a performance and evaluation report 
     concerning the use of funds made available under this Act. 
     The report of the local housing and management authority 
     shall include an assessment by the authority of the 
     relationship of such use of funds made available under this 
     Act, as well as the use of other funds, to the needs 
     identified in the local housing management plan and to the 
     purposes of this Act. The local housing and management 
     authority shall certify that the report was available for 
     review and comment by affected tenants prior to its 
     submission to the Board.
       (b) Review of LHMA's.--The Accreditation Board established 
     under section 401 shall, at least on an annual basis, make 
     such reviews as may be necessary or appropriate to determine 
     whether each local housing and management authority receiving 
     assistance under this section--
       (1) has carried out its activities under this Act in a 
     timely manner and in accordance with its local housing 
     management plan;
       (2) has a continuing capacity to carry out its local 
     housing management plan in a timely manner; and
       (3) has satisfied, or has made reasonable progress towards 
     satisfying, such performance standards as shall be prescribed 
     by the Board.
       (c) Records.--Each local housing and management authority 
     shall collect, maintain, and submit to the Accreditation 
     Board established under section 401 such data and other 
     program records as the Board may require, in such form and in 
     accordance with such schedule as the Board may establish.

[[Page H4516]]

       Page 37, line 18, strike ``SEC. 109.'' and insert ``SEC. 
     110.''.
       Page 38, line 6, strike ``SEC. 110.'' and insert ``SEC. 
     111.''.
       Page 38, lines 10 and 11, strike ``and assisted families 
     under title III''.
       Page 38, line 16, after ``impartial party'' insert 
     ``(including appropriate employees of the local housing and 
     management authority)''.
       Page 39, strike lines 13 through 17 and insert the 
     following new subsection:
       (c) Inapplicability to Choice-Based Rental Housing 
     Assistance.--This section may not be construed to require any 
     local housing and management authority to establish or 
     implement an administrative grievance procedure with respect 
     to assisted families under title III.
       Page 39, line 18, strike ``SEC. 111.'' and insert ``SEC. 
     112.''.
       Page 40, line 18, strike ``SEC. 112.'' and insert ``SEC. 
     113.''.
       Page 39, lines 22 and 23, strike ``to provide incremental 
     housing assistance under title III'' and insert ``for use''.
       Page 40, line 2, after ``subsection (a)'' insert ``or 
     appropriated or otherwise made available for use under this 
     section''.
       Page 40, strike lines 12 through 17 and insert the 
     following:
       (4) providing technical assistance, training, and 
     electronic information systems for the Department of Housing 
     and Urban Development, local housing and management 
     authorities, residents, resident councils, and resident 
     management corporations to improve management of such 
     authorities, except that the provision of assistance under 
     this paragraph may not involve expenditure of amounts 
     retained under subsection (a) for travel;
       (5)(A) providing technical assistance, directly or 
     indirectly, for local housing and management authorities, 
     residents, resident councils, resident management 
     corporations, and nonprofit and other entities in connection 
     with implementation of a homeownership program under section 
     251, except that grants under this paragraph may not exceed 
     $100,000; and (B) establishing a public housing homeownership 
     program data base; and
       (6) needs related to the Secretary's actions regarding 
     troubled local housing and management authorities under this 
     Act.

     Housing needs under this subsection may be met through the 
     provision of assistance in accordance with title II or title 
     III, or both.
       Page 42, line 4, after ``who'' insert ``(A)''.
       Page 42, line 6, strike ``and'' and insert a comma.
       Page 42, line 7, strike ``or production''.
       Page 42, line 8, before the period insert the following: 
     ``, and (C) is not a member of a bargaining unit represented 
     by a union that has a collective bargaining agreement with 
     the local housing and management authority''.
       Page 42, after line 8, insert the following:
       (3) Residents in training programs.--Any individuals 
     participating in a job training program or other program 
     designed to promote economic self-sufficiency.
       (c) Definition.--For purposes of this section, the terms 
     ``operation'' and ``production'' have the meanings given the 
     term in section 273.
       Page 42, line 9, strike ``SEC. 113.'' and insert ``SEC. 
     114.''.
       Page 43, after line 4, insert the following new section:

     SEC. 114. PROHIBITION ON USE OF FUNDS.

       None of the funds made available to the Department of 
     Housing and Urban Development to carry out this Act, which 
     are obligated to State or local governments, local housing 
     and management authorities, housing finance agencies, or 
     other public or quasi-public housing agencies, shall be used 
     to indemnify contractors or subcontractors of the government 
     or agency against costs associated with judgments of 
     infringement of intellectual property rights.
       Page 43, line 5, strike ``SEC. 114.'' and insert ``SEC. 
     115.''.
       Page 45, strike line 22 and insert the following:

     SEC. 202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.

       Page 46, after line 2, insert the following new subsection:
       (b) Performance Funds.--
       (1) In general.--The Secretary shall establish 2 funds for 
     the provision of grants to eligible local housing and 
     management authorities under this title, as follows:
       (A) Capital fund.--A capital fund to provide capital and 
     management improvements to public housing developments.
       (B) Operating fund.--An operating fund for public housing 
     operations.
       (2) Flexibility of funding.--A local housing and management 
     authority may use up to 10 percent of the amounts from a 
     grant under this title that are allocated and provided from 
     the capital fund for activities that are eligible under 
     section 203(a)(2) to be funded with amounts from the 
     operating fund.
       (c) Amount of Grants.--The amount of the grant under this 
     title for a local housing and management authority for a 
     fiscal year shall be the amount of the allocation for the 
     authority determined under section 204, except as otherwise 
     provided in this title and subtitle B of title IV.
       Page 46, line 3, strike ``(b)'' and insert ``(d)''.
       Page 46, line 19, strike ``(d)'' and insert ``(e)''.
       Page 47, line 3, strike ``(e)'' and insert ``(f)''.
       Page 47, strike lines 7 through 11.
       Page 47, line 12, strike ``(d)'' and insert ``(e)''.
       Page 48, line 22, strike ``not''.
       Page 49, line 12, strike ``(e)'' and insert ``(f)''.
       Page 49, line 20, strike ``(f)'' and insert ``(g)''.
       Page 50, strike line 4 and all that follows through page 
     54, line 5, and insert the following new subsection:
       (a) Eligible Activities.--Except as provided in subsection 
     (b) and in section 202(b)(2), grant amounts allocated and 
     provided from the capital fund and grant amounts allocated 
     and provided from the operating fund may only be used only 
     for the following activities:
       (1) Capital Fund Activities.--Grant amounts from the 
     capital fund may be used for--
       (A) the production and modernization of public housing 
     developments, including the redesign, reconstruction, and 
     reconfiguration of public housing sites and buildings and the 
     production of mixed-income developments;
       (B) vacancy reduction;
       (C) addressing deferred maintenance needs and the 
     replacement of dwelling equipment;
       (D) planned code compliance;
       (E) management improvements;
       (F) demolition and replacement under section 261;
       (G) tenant relocation;
       (H) capital expenditures to facilitate programs to improve 
     the economic empowerment and self-sufficiency of public 
     housing tenants; and
       (I) capital expenditures to improve the security and safety 
     of residents.
       (2) Operating Fund Activities.--Grant amounts from the 
     operating fund may be used for--
       (A) procedures and systems to maintain and ensure the 
     efficient management and operation of public housing units;
       (B) activities to ensure a program of routine preventative 
     maintenance;
       (C) anti-crime and anti-drug activities, including the 
     costs of providing adequate security for public housing 
     tenants;
       (D) activities related to the provision of services, 
     including service coordinators for elderly persons or persons 
     with disabilities;
       (E) activities to provide for management and participation 
     in the management of public housing by public housing 
     tenants;
       (F) the costs associated with the operation and management 
     of mixed-income developments;
       (G) the costs of insurance;
       (H) the energy costs associated with public housing units, 
     with an emphasis on energy conservation;
       (I) the costs of administering a public housing work 
     program under section 106, including the costs of any related 
     insurance needs; and
       (J) activities in connection with a homeownership program 
     for public housing residents under subtitle D, including 
     providing financing or assistance for purchasing housing, or 
     the provision of financial assistance to resident management 
     corporations or resident councils to obtain training, 
     technical assistance, and educational assistance to promote 
     homeownership opportunities.
       Page 54, line 11, after ``title III'' insert a comma.
       Page 54, strike lines 16 through 25 and insert the 
     following:

     sufficient evidence to the Secretary that the building or 
     buildings--
       (A) are on the same or contiguous sites;
       (B) consist of more than 300 dwelling units;
       (C) have a vacancy rate of at least 10 percent for dwelling 
     units not in funded, on-schedule modernization programs;
       (D) are identified as distressed housing for which the 
     local housing and management authority cannot assure the 
     long-term viability as public housing through reasonable 
     revitalization, density reduction, or achievement of a 
     broader range of household income; and
       (E) have an estimate cost of continued operation and 
     modernization as public housing that exceeds the cost of 
     providing choice-based rental assistance under title III for 
     all families in occupancy, based on appropriate indicators of 
     cost (such as the percentage of the total development cost 
     required for modernization).

     Local housing and management agencies shall identify 
     properties that meet the definition of subparagraphs (A) 
     through (E).
       Page 55, line 3, strike ``formula'' and insert 
     ``formulas''.
       Page 55, line 6, strike ``incremental''.
       Page 55, strike line 7 and all that follows through 
     ``assistance'' on line 10.
       Page 56, line 14, after ``and'' insert ``take''.
       Page 58, line 10, strike ``formula'' and insert 
     ``formulas''.
       Page 58, line 12, strike ``formula'' and insert 
     ``formulas''.
       Page 58, strike line 15 and all that follows through line 
     22, and insert the following new subsection:
       (c) Extension of Deadlines.--The Secretary may, for a local 
     housing and management authority, extend any deadline 
     established pursuant to this section or a local housing 
     management plan for up to an additional 5 years if the 
     Secretary makes a determination that the deadline is 
     impracticable.
       Page 59, line 11, strike ``BLOCK''.
       Page 59, line 13, strike ``section 111'' and insert 
     ``section 112''.

[[Page H4517]]

       Page 59, line 24, strike ``a formula described in'' and 
     insert ``the formulas described in paragraphs (1) and (2) 
     of''.;
       Page 60, lines 1 and 2, strike ``formula'' and insert 
     ``formulas''.
       Page 60, strike line 10 and all that follows through line 
     23 and insert the following:
       (c) Permanent Allocation Formulas for Capital and Operating 
     Funds.--
       (1) Establishment of Capital Fund Formula.--The formula 
     under this paragraph shall provide for allocating assistance 
     under the capital fund for a fiscal year. The formula may 
     take into account such factors as--
       (A) the number of public housing dwelling units owned or 
     operated by the local housing and management authority, the 
     characteristics and locations of the developments, and the 
     characteristics of the families served and to be served 
     (including the incomes of the families);
       (B) the need of the local housing and management authority 
     to carry out rehabilitation and modernization activities, and 
     reconstruction, production, and demolition activities related 
     to public housing dwelling units owned or operated by the 
     local housing and management authority, including backlog and 
     projected future needs of the authority;
       (C) the cost of constructing and rehabilitating property in 
     the area; and
       (D) the need of the local housing and management authority 
     to carry out activities that provide a safe and secure 
     environment in public housing units owned or operated by the 
     local housing and management authority.
       (2) Establishment of Operating Fund Formula.--The formula 
     under this paragraph shall provide for allocating assistance 
     under the operating fund for a fiscal year. The formula may 
     take into account such factors as--
       (A) standards for the costs of operating and reasonable 
     projections of income, taking into account the 
     characteristics and locations of the public housing 
     developments and characteristics of the families served and 
     to be served (including the incomes of the families), or the 
     costs of providing comparable services as determined in 
     accordance with criteria or a formula representing the 
     operations of a prototype well-managed public housing 
     development;
       (B) the number of public housing dwelling units owned or 
     operated by the local housing and management authority; and
       (C) the need of the local housing and management authority 
     to carry out anti-crime and anti-drug activities, including 
     providing adequate security for public housing residents.
       Page 60, line 24, strike ``(2)'' and insert ``(3)''.
       Page 60, line 25, strike ``formula'', and insert 
     ``formulas''.
       Page 61, line 4, strike ``formula'', and insert 
     ``formulas''.
       Page 61, line 6, strike ``(3)'' and insert ``(4)''.
       Page 61, line 9, strike ``formula'', and insert 
     ``formulas''.
       Page 61, line 10, strike ``(2)'' and insert ``(3)''.
       Page 62, line 10, after ``costs'' insert the following: 
     ``and other necessary costs (such as costs necessary for the 
     protection of persons and property)''.
       Page 62, after line 16, insert the following new 
     subparagraph:
       (D) Increases in income.--The Secretary may revise the 
     formula referred to in subparagraph (B) to provide an 
     incentive to encourage local housing and management 
     authorities to increase nonrental income and to increase 
     rental income attributable to their units by encouraging 
     occupancy by families with a broad range of incomes, 
     including families whose incomes have increased while in 
     occupancy and newly admitted families. Any such incentive 
     shall provide that the local housing and management authority 
     shall derive the full benefit of an increase in nonrental 
     income, and such increase shall not directly result in a 
     decrease in amounts provided to the authority under this 
     title.
       Page 63, after line 13, insert the following new 
     subsection:
       (e) Eligibility of Units Acquired From Proceeds of Sales 
     Under Demolition or Disposition Plan.--If a local housing and 
     management authority uses proceeds from the sale of units 
     under a homeownership program in accordance with section 251 
     to acquire additional units to be sold to low-income 
     families, the additional units shall be counted as public 
     housing for purposes of determining the amount of the 
     allocation to the authority under this section until sale by 
     the authority, but in any case no longer than 5 years.
       Page 69, line 21, strike ``25 percent'' and insert ``30 
     percent''.
       Page 69, line 23, strike the period insert the following: 
     ``, as determined by the Secretary with adjustments for 
     smaller and larger families. The Secretary may establish 
     income ceiling higher or lower than 30 percent of the area 
     median income on the basis of the Secretary's findings that 
     such variations are necessary because of unusually high or 
     low family incomes.''.
       Page 71, after line 11, insert the following new 
     subsection:
       (e) Loss of Assistance for Termination of Tenancy.--A local 
     housing and management authority shall, consistent with 
     policies described in the local housing management plan of 
     the authority, establish policies providing that a family 
     residing in a public housing dwelling unit whose tenancy is 
     terminated for serious violations of the terms or conditions 
     of the lease shall--
       (1) lose any right to continued occupancy in public housing 
     under this title; and
       (2) immediately become ineligible for admission to public 
     housing under this title or for housing assistance under 
     title III--
       (A) in the case of a termination due to drug-related 
     criminal activity, for a period of not less than 3 years from 
     the date of the termination; or
       (B) for other terminations, for a reasonable period of time 
     as determined period of time as determined by the local 
     housing and management authority.
       Page 71, line 22, strike the period and all that follows 
     through ``sources'' in line 24.
       Page 72, strike line 11 and all that follows through page 
     74, line 20, and insert the following new subsection:
       (b) Availability of Criminal Records.--A local housing and 
     management authority may request and obtain records regarding 
     the criminal convictions of applicants for, or tenants of, 
     public housing as provided in section 646 of the Housing and 
     Community Development Act of 1992.
       Page 76, strike line 2 and all that follows through page 
     77, line 14, and insert the following:
       (a) Rental Contribution by Resident.--
       (1) In general.--A family shall pay as monthly rent for a 
     dwelling unit in public housing the amount that the local 
     housing and management authority determines is appropriate 
     with respect to the family and the unit, which shall be--
       (A) based upon factors determined by the authority, which 
     may include the adjusted income of the resident, type and 
     size of dwelling unit, operating and other expenses of the 
     authority, or any other factors that the authority considers 
     appropriate; and
       (B) an amount that is not less than the minimum monthly 
     rental amount under subsection (b)(1) nor more than any 
     maximum monthly rental amount established for the dwelling 
     unit pursuant to subsection (b)(2).

     In determining the amount of the rent charged under this 
     paragraph for a dwelling unit, a local housing and management 
     authority shall take into consideration the characteristics 
     of the population served by the authority, the goals of the 
     local housing management plan for the authority, and the 
     goals under the comprehensive housing affordability strategy 
     under section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act (or any consolidated plan 
     incorporating such strategy) for the applicable jurisdiction.
       (2) Exceptions.--Notwithstanding any other provision of 
     this section, the amount paid for monthly rent for a dwelling 
     unit in public housing may not exceed 30 percent of the 
     family's adjusted monthly income for any family who--
       (A) upon the date of the enactment of this Act, is residing 
     in any dwelling unit in public housing and--
       (i) is an elderly family; or
       (ii) is a disabled family; or
       (B) whose income does not exceed 30 percent of the median 
     income for the area (as determined by the Secretary with 
     adjustments for smaller and larger families).
       (b) Allowable Rents.--
       (1) Minimum rental.--Each local housing and management 
     authority shall establish, for each dwelling unit in public 
     housing owned or administered by the authority, a minimum 
     monthly rental contribution toward the rent (which rent shall 
     include any amount allowed for utilities), which--
       (A) may not be less than $25, nor more than $50; and
       (B) may be increased annually by the authority, except that 
     no such annual increase may exceed 10 percent of the amount 
     of the minimum monthly rental contribution in effect for the 
     preceding year.

     Notwithstanding the preceding sentence, a local housing and 
     management authority may, in its sole discretion, grant an 
     exemption in whole or in part from payment of the minimum 
     monthly rental contribution established under this paragraph 
     to any family unable to pay such amount because of severe 
     financial hardships. Severe financial hardships may include 
     situations where the family is awaiting an eligibility 
     determination for a Federal, State, or local assistance 
     program, where the family would be evicted as a result of 
     imposition of the minimum rent, and other situations as may 
     be determined by the authority.
       Page 82, line 14, before the semicolon, insert ``on or off 
     such premises''.
       Page 83, strike line 1 and all that follows through page 
     89, line 15, and insert the following new section:

     SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DISABLED 
                   FAMILIES

       (a) Authority To Provide Designated Housing.--
       (1) In general.--Subject only to provisions of this section 
     and notwithstanding any other provision of law, a local 
     housing and management authority for which the information 
     required under subsection (d) is in effect may provide public 
     housing developments (or portions of developments) 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 developments (or portions of 
     developments) that are designated for occupancy as provided 
     in paragraph (1), the local housing and

[[Page H4518]]

     management authority may make units in such developments (or 
     portions) available only to the types of families for whom 
     the development is designated.
       (3) Eligibility of near-elderly families.--If a local 
     housing and management authority determines that there are 
     insufficient numbers of elderly families to fill all the 
     units in a development (or portion of a development) 
     designated under paragraph (1) for occupancy by only elderly 
     families, the authority may provide that near-elderly 
     families may occupy dwelling units in the development (or 
     portion).
       (b) Standards Regarding Evictions.--Except as provided in 
     section 105(b)(1)(B), any tenant who is lawfully residing in 
     a dwelling unit in a public housing development may not be 
     evicted or otherwise required to vacate such unit because of 
     the designation of the development (or portion of a 
     development) pursuant to this section or because of any 
     action taken by the Secretary or any local housing and 
     management authority pursuant to this section.
       (c) Relocation Assistance.--A local housing and management 
     authority that designates any existing development 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 authority and the person or family;
       (2) access to comparable housing (including appropriate 
     services and design features), which may include choice-based 
     rental housing assistance under title III, 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 Inclusions in Local Housing Management Plan.--
     A local housing and management authority may designate a 
     development (or portion of a development) for occupancy under 
     subsection (a)(1) only if the authority, as part of the 
     authority's local housing management plan--
       (1) establishes that the designation of the development 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 development (or portion of a development) to be 
     designated;
       (B) the types of tenants for which the development is to be 
     designated;
       (C) any supportive services to be provided to tenants of 
     the designated development (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 development 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 development 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. Notwithstanding section 108, the Secretary may 
     approve a local housing management plan without approving the 
     portion of the plan covering designation of a development 
     pursuant to this section.
       (e) Effectiveness.--
       (1) Initial 5-year effectiveness.--The information required 
     under subsection (d) shall be in effect for purposes of this 
     section during the 5-year period that begins upon 
     notification under section 108(a) of the local housing and 
     management authority that the information complies with the 
     requirements under section 107 and this section.
       (2) Renewal.--Upon the expiration of the 5-year period 
     under paragraph (1) or any 2-year period under this 
     paragraph, an authority may extend the effectiveness of the 
     designation and information for an additional 2-year period 
     (that begins upon such expiration) by submitting to the 
     Secretary any information needed to update the information. 
     The Secretary may not limit the number of times a local 
     housing and management authority extends the effectiveness of 
     a designation and information under this paragraph.
       (3) Treatment of existing plans.--Notwithstanding any other 
     provision of this section, a local housing and management 
     authority shall be considered to have submitted the 
     information required under this section if the authority has 
     submitted to the Secretary an application and allocation plan 
     under section 7 of the United States Housing Act of 1937 (as 
     in effect before the date of the enactment of this Act) that 
     has not been approved or disapproved before such date of 
     enactment.
       (4) Transition provision.--Any application and allocation 
     plan approved under section 7 of the United States Housing 
     Act of 1937 (as in effect before the date of the enactment of 
     this Act) before such date of enactment shall be considered 
     to be the information required to be submitted under this 
     section and 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 resident 
     of a public housing development 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 development or building, or 
     portion thereof, for occupancy as provided under subsection 
     (a) of this section.
       (h) Use of Amounts.--Any amounts appropriated pursuant to 
     section 10(b) of the Housing Opportunity Program Extension 
     Act of 1996 (Public Law 104-120) may also be used for choice-
     based rental housing assistance under title III for local 
     housing and management authorities to implement this section.
       Page 89, after line 23, insert the following new 
     subsection:
       (b) Accounting System for Rental Collections and Costs.--
       (1) Establishment.--Each local housing and management 
     authority that receives grant amounts under this title shall 
     establish and maintain a system of accounting for rental 
     collections and costs (including administrative, utility, 
     maintenance, repair, and other operating costs) for each 
     project and operating cost center (as determined by the 
     Secretary).
       (2) Access to records.--Each local housing and management 
     authority shall make available to the general public the 
     information required pursuant to paragraph (1) regarding 
     collections and costs.
       (3) Exemption.--The Secretary may permit authorities owning 
     or operating fewer than 500 dwelling units to comply with the 
     requirements of this subsection by accounting on an 
     authority-wide basis.
       Page 89, line 24, strike ``(b)'' and insert ``(c)''.
       Page 90, strike lines 13 through 16 and insert the 
     following:

     dwellings, with such applicable
       Page 90, lines 20 and 21, strike the period ``subparagraph 
     (A)'' and insert ``paragraph (1)''.
       Page 91, strike ``and'' in line 12 and all that follows 
     through line 16 and insert a period.
       Page 92, strike lines 4 through 11, and insert the 
     following:
       Section 3 of the Housing and Urban Development Act of 1968 
     (12 U.S.C. 1701u) is amended--
       (1) in subsection (c)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``public and Indian housing agencies'' and 
     inserting ``local housing and management authorities and 
     recipients of grants under the Native American Housing 
     Assistance and Self-Determination Act of 1996''; and
       (ii) by striking ``development assistance'' and all that 
     follows through the end and inserting ``assistance provided 
     under title II of the United States Housing Act of 1996 and 
     used for the housing production, operation, or capital 
     needs.''; and
       (B) in subparagraph (B)(ii), by striking ``managed by the 
     public or Indian housing agency'' and inserting ``assisted by 
     the local housing and management authority or the recipient 
     of a grant under the Native American Housing Assistance and 
     Self-Determination Act of 1996''; and
       (2) in subsection (d)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``public and Indian housing agencies'' and 
     inserting ``local housing and management authorities and 
     recipients of grants under the Native American Housing 
     Assistance and Self-Determination Act of 1996''; and
       (ii) by striking ``development assistance'' and all that 
     follows through ``section 14 of that Act'' and inserting 
     ``assistance provided under title II of the United States 
     Housing Act of 1996 and used for the housing production, 
     operation, or capital needs''; and
       (B) in subparagraph (B)(ii), by striking ``operated by the 
     public or Indian housing agency'' and inserting ``assisted by 
     the local housing and management authority or the recipient 
     of a grant under the Native American Housing Assistance and 
     Self-Determination Act of 1996''.
       Page 93, line 3, insert ``on a regular basis'' before the 
     period.
       Page 97, line 8, strike ``is''.
       Page 108, line 16, after the period insert the following: 
     ``In addition, the Secretary may provide financial assistance 
     to resident management corporations or resident councils for 
     activities sponsored by resident organizations for economic 
     uplift, such as job training, economic development, security, 
     and other self-sufficiency activities beyond those related to 
     the management of public housing. The Secretary may require 
     resident councils or resident management corporations to 
     utilize local housing and management authorities or other 
     qualified organizations as contract administrators with 
     respect to financial assistance provided under this 
     paragraph.
       Page 109, after line 17, insert the following new 
     paragraph:
       (6) Technical assistance and clearinghouse.--The Secretary 
     may use up to 10 percent of the amount made available 
     pursuant to paragraph (4)--
       (A) to provide technical assistance, directly or by grant 
     or contract, and
       (B) to receive, collect, process, assemble, and disseminate 
     information,
     in connection with activities under this subsection.
       Page 110, line 19, after the period the following:

     An authority may transfer a unit only pursuant to a 
     homeownership program approved

[[Page H4519]]

     by the Secretary. Notwithstanding section 108, the Secretary 
     may approve a local housing management plan without approving 
     the portion of the plan regarding a homeownership program 
     pursuant to this section.
       Page 111, line 5, insert after ``sales'' the following: 
     ``by purchasing units for resale to low-income families''.
       Page 111, line 16, after the period insert the following:

     In the case of purchase by an entity for resale to low-income 
     families, the entity shall sell the units to low-income 
     families within 5 years from the date of its acquisition of 
     the units. The entity shall use any net proceeds from the 
     resale and from managing the units, as determined in 
     accordance with guidelines of the Secretary, for housing 
     purposes, such as funding resident organizations and reserves 
     for capital replacements.
       Page 113, line 9, after ``propriate'' insert ``(whether the 
     family purchases directly from the authority or from another 
     entity)''.
       Page 115, line 4, after the period insert the following new 
     sentence:

     Notwithstanding section 108, the Secretary may approve a 
     local housing management plan without approving the portion 
     of the plan covering demolition or disposition pursuant to 
     this section.
       Page 127, line 19, insert ``and'' after the semicolon.
       Page 127, line 21, strike ``; and'' and insert a period.
       Page 127, strike line 22 and all that follows through page 
     128, line 2, and insert the following:

     The Secretary shall give preference in selection to any local 
     housing and management authority that has been awarded a 
     planning grant under section 24(c) of the United States 
     Housing Act of 1937 (as in effect before the date of the 
     enactment of this Act).
       Page 129, line 4, before the period insert the following: 
     ``or to one or more other entities capable of proceeding 
     expeditiously in the same locality in carrying out the 
     revitalization plan of the original grantee''.
       Page 129, line 9, after ``troubled'' insert ``or 
     dysfunctional''.
       Page 133, line 5, strike lines 4 and 5 and insert the 
     following:

     under this section $480,000,000 for each of fiscal years 
     1996, 1997, and 1998''.
       Page 133, line 17, strike ``1996'' and insert ``1998''.
       Page 133, after line 17, insert the following new section:

     SEC. 263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.

       (a) In General.--A local housing and management authority 
     may convert any public housing development (or portion 
     thereof) owned and operated by the authority to a system of 
     choice-based rental housing assistance under title III, in 
     accordance with this section.
       (b) Assessment and Plan Requirement.--In converting under 
     this section to a choice-based rental housing assistance 
     system, the local housing and management authority shall 
     develop a conversion assessment and plan under this 
     subsection, in consultation with the appropriate public 
     officials and with significant participation by the residents 
     of the development (or portion thereof), which assessment and 
     plan shall--
       (1) be consistent with and part of the local housing 
     management plan for the authority;
       (2) describe the conversion and future use or disposition 
     of the public housing development, including an impact 
     analysis on the affected community;
       (3) include a cost analysis that demonstrates whether or 
     not the cost (both on a net present value basis and in terms 
     of new budget authority requirements) of providing choice-
     based rental housing assistance under title III for the same 
     families in substantially similar dwellings over the same 
     period of time is less expensive than continuing public 
     housing assistance in the public housing development proposed 
     for conversion for the remaining useful life of the 
     development; and
       (4) identify the actions, if any, that the local housing 
     and management authority will take with regard to converting 
     any public housing development or developments (or portions 
     thereof) of the authority to a system of choice-based rental 
     housing assistance under title III.
       (c) Streamlined Assessment and Plan.--At the discretion of 
     the Secretary or at the request of a local housing and 
     management authority, the Secretary may waive any or all of 
     the requirements of subsection (b) or otherwise require a 
     streamlined assessment with respect to any public housing 
     development or class of public housing developments.
       (d) Implementation of Conversion Plan.--
       (1) In general.--A local housing and management authority 
     may implement a conversion plan only if the conversion 
     assessment under this section demonstrates that the 
     conversion--
       (A) will not be more expensive than continuing to operate 
     the public housing development (or portion thereof) as public 
     housing; and
       (B) will principally benefit the residents of the public 
     housing development (or portion thereof) to be converted, the 
     local housing and management authority, and the community.
       (2) Disapproval.--The Secretary shall disapprove a 
     conversion plan only if the plan is plainly inconsistent with 
     the conversion assessment under subsection (b) or there is 
     reliable information and data available to the Secretary that 
     contradicts that conversion assessment.
       (e) Other Requirements.--To the extent approved by the 
     Secretary, the funds used by the local housing and management 
     authority to provide choice-based rental housing assistance 
     under title III shall be added to the housing assistance 
     payment contract administered by the local housing and 
     management authority or any entity administering the contract 
     on behalf of the local housing and management authority.
       (f) Savings Provision.--This section does not affect any 
     contract or other agreement entered into under section 22 of 
     the United States Housing Act of 1937 (as such section 
     existed immediately before the enactment of this Act).
       Page 135, line 18, strike ``section 202(b)'' and insert 
     ``section 202(d)''.
       Page 138, strike line 5 and all that follows through line 7 
     and insert the following:
       There are authorized to be appropriated for grants under 
     this title, the following amounts:
       (1) Capital Fund.--For the allocations from the capital 
     fund for grants, $2,500,000,000 for each of fiscal years 
     1997, 1998, 1999, and 2000; and
       (2) Operating Fund.--For the allocations from the operating 
     fund for grants, $2,800,000,000 for each of fiscal years 
     1997, 1998, 1999, and 2000.
       Page 141, line 7, strike ``(5)'' and insert ``(4)''.
       Page 141, line 10, strike ``(6)'' and insert ``(5)''.
       Page 140, line 21, after ``title'' insert the following: 
     ``pursuant to the formula established under section 304(a)''.
       Page 141, lines 16 and 17, strike ``subsection (c) and 
     section 109'' and insert ``subsections (b)(3) and (c), and 
     section 112''.
       Page 143, line 19, after ``including'' insert the 
     following: ``funding for the headquarters reserve fund under 
     section 112,''.
       Page 143, line 25, after ``displacement'' insert ``from 
     public or assisted housing''.
       Page 144, line 9, strike ``loan'' and insert ``portfolio''.
       Page 148, line 22, strike ``the Secretary'' and all that 
     follows through page 149, line 21, and insert the following: 
     ``the Secretary shall take such steps as may be necessary to 
     ensure that the local housing and management authority that 
     provides the services for a family receives all or part of 
     the administrative fee under this section (as 
     appropriate).''.
       Page 152, after line 2, insert the following new 
     subsection:
       (b) Income Targeting.--Of the families initially assisted 
     under this title by a local housing and management authority 
     in any year, not less than 50 percent shall be families whose 
     incomes do not exceed 60 percent of the area median income, 
     as determined by the Secretary with adjustments for smaller 
     and larger families. The Secretary may establish income 
     ceiling higher or lower than 30 percent of the area median 
     income on the basis of the Secretary's findings that such 
     variations are necessary because of unusually high or low 
     family incomes.
       Page 152, line 3, strike ``(b)'' and insert ``(c)''.
       Page 152, line 18, strike ``(c)'' and insert ``(d)''.
       Page 153, strike line 11 and all that follows through line 
     25 on page 155, and insert the following new subsection:
       (d) Portability of Housing Assistance.--
       (1) National portability.--An eligible family that is 
     selected to receive or is receiving assistance under this 
     title may rent any eligible dwelling unit in any area where a 
     program is being administered under this title. 
     Notwithstanding the preceding sentence, a local housing and 
     management authority may require that any family not living 
     within the jurisdiction of the local housing and management 
     authority at the time the family applies for assistance from 
     the authority shall, during the 12-month period beginning on 
     the date of initial receipt of housing assistance made 
     available on behalf of the family from that authority, lease 
     and occupy an eligible dwelling unit located within the 
     jurisdiction served by the authority. The authority for the 
     jurisdiction into which the family moves shall have the 
     responsibility for administering assistance for the family.
       (2) Source of funding for a family that moves.--For a 
     family that has moved into the jurisdiction of a local 
     housing and management authority and that, at the time of the 
     move, has been selected to receive, or is receiving, 
     assistance provided by another authority, the authority for 
     the jurisdiction into which the family has moved may, in its 
     discretion, cover the cost of assisting the family under its 
     contract with the Secretary or through reimbursement from the 
     other authority under that authority's contract.
       (3) Authority to deny assistance to certain families who 
     move.--A family may not receive housing assistance as 
     provided under this subsection if the family has moved from a 
     dwelling unit in violation of the lease for the dwelling 
     unit.
       (4) Funding allocations.--In providing assistance amounts 
     under this title for local housing and management authorities 
     for any fiscal year, the Secretary may give consideration to 
     any reduction or increase in the number of resident families 
     under the program of an authority in the preceding fiscal 
     year as a result of this subsection.
       Page 156, line 3, strike ``may, to the extent such policies 
     are'' and insert ``shall, consistent with the policies''.

[[Page H4520]]

       Page 156, lines 4 and 5, strike ``and included in the lease 
     for a dwelling unit''.
       Page 156, strike lines 11 through 14 and insert the 
     following new paragraph:
       (2) immediately become ineligible for housing assistance 
     under this title or for admission to public housing under 
     title II--
       (A) in the case of a termination due to drug-related 
     criminal activity, for a period of not less than 3 years from 
     the date of the termination; and
       (B) for other terminations, for a reasonable period of time 
     as determined by the local housing and management authority.
       Page 156, line 15, strike ``(h)'' and insert ``(f)''.
       Page 156, after line 24, insert the following new 
     subsections:
       (i) Denial of Assistance to Criminal Offenders.--In making 
     assistance under this title available on behalf of eligible 
     families, a local housing and management authority may deny 
     the provision of such assistance in the same manner, for the 
     same period, and subject to the same conditions that an owner 
     of federally assisted housing may deny occupancy in such 
     housing under subsections (b) and (c) of section 642 of the 
     Housing and Community Development Act of 1992.
       (j) Availability of Criminal Records.--A local housing and 
     management authority may request and obtain records regarding 
     the criminal convictions of applicants for housing assistance 
     under this title and assisted families under this title to 
     the same extent an owner of federally assisted housing may 
     obtain such records regarding an applicant for or tenant of 
     federally assisted housing under section 646 of the Housing 
     and Community Development Act of 1992.
       Page 157, strike line 2 and all that follows through page 
     158, line 8, and insert the following new subsections:
       (a) Amount.--
       (1) In general.--An assisted family shall contribute on a 
     monthly basis for the rental of an assisted dwelling unit an 
     amount that the local housing and management authority 
     determines is appropriate with respect to the family and the 
     unit, but shall not be less than the minimum monthly rental 
     contribution determined under subsection (b).
       (2) Exceptions for certain current residents.--
     Notwithstanding paragraph (1), the amount paid by an assisted 
     family for monthly rent for an assisted dwelling unit, may 
     not exceed 30 percent of the family's adjusted monthly income 
     for any family who--
       (A) upon the date of the enactment of this Act, is an 
     assisted family and--
       (i) is an elderly family; or
       (ii) is a disabled family; or
       (B) whose income does not exceed 30 percent of the median 
     income for the area (as determined by the Secretary with 
     adjustments for smaller and larger families).

     Any amount payable under paragraph (3) shall be in addition 
     to the amount payable under this paragraph.
       (3) Excess rental amount.--In any case in which the monthly 
     rent charged for a dwelling unit pursuant to the housing 
     assistance payments contract exceeds the applicable payment 
     standard (established under section 353) for the dwelling 
     unit, the assisted family residing in the unit shall 
     contribute (in addition to the amount of the monthly rent 
     contribution otherwise determined under paragraph (1) or (2) 
     of this subsection for such family) such entire excess rental 
     amount.
       (b) Minimum Monthly Rental Contribution.--
       (1) In General.--The local housing and management authority 
     shall determine the amount of the minimum monthly rental 
     contribution of an assisted family (which rent shall include 
     any amount allowed for utilities), which--
       (A) shall be based upon factors including the adjusted 
     income of the family and any other factors that the authority 
     considers appropriate;
       (B) shall be not less than $25, nor more than $50; and
       (C) may be increased annually by the authority, except that 
     no such annual increase may exceed 10 percent of the amount 
     of the minimum monthly contribution in effect for the 
     preceding year.
       (2) Hardship exception.--Notwithstanding paragraph (1), a 
     local housing and management authority may, in its sole 
     discretion, grant an exemption in whole or in part from 
     payment of the minimum monthly rental contribution 
     established under this paragraph to any assisted family 
     unable to pay such amount because of severe financial 
     hardships. Severe financial hardships may include situations 
     where the family is awaiting an eligibility determination for 
     a Federal, State, or local assistance program, where the 
     family would be evicted as a result of imposition of the 
     minimum rent, and other situations as may be determined by 
     the authority.
       Page 161, line 21, strike ``section 325'' and insert ``this 
     title''.
       Page 162, line 19, before the period, insert ``on or off 
     such premises''.
       Page 163, strike lines 9 through 16 and insert the 
     following new paragraph:
       (1) In general.--Notwithstanding subsection (a), a local 
     housing and management authority--
       (A) may not enter into a housing assistance payments 
     contract (or renew an existing contract) covering a dwelling 
     unit that is owned by an owner who is debarred, suspended, or 
     subject to limited denial of participation under part 24 of 
     title 24, Code of Federal Regulations;
       (B) may prohibit, or authorize the termination or 
     suspension of, payment of housing assistance under a housing 
     assistance payments contract in effect at the time such 
     debarment, suspension, or limited denial of participation 
     takes effect.

     If the local housing and management authority takes action 
     under subparagraph (B), the authority shall take such actions 
     as may be necessary to protect assisted families who are 
     affected by the action, which may include the provision of 
     additional assistance under this title to such families.
       Page 163, strike line 23 and all that follows through page 
     164, line 2.
       Page 164, line 8, before the period insert ``and any 
     applicable law''.
       Page 165, line 17, strike ``subsection (b)'' and insert 
     ``subsection (c)''.
       Page 166, strike lines 9 through 22 and insert the 
     following new paragraph:
       (2) Expeditious inspection.--Inspections of dwelling units 
     under this subsection shall be made before the expiration of 
     the 15-day period beginning upon a request by the resident or 
     landlord to the local housing and management authority. The 
     performance of the authority in meeting the 15-day inspection 
     deadline shall be taken into account in assessing the 
     performance of the authority.
       Page 167, line 14, strike ``The authority'' and all that 
     follows through line 19 and insert the following new 
     sentence: ``The authority shall retain the records of the 
     inspection for a reasonable time and shall make the records 
     available upon request to the Secretary and the Inspector 
     General for the Department of Housing and Urban Development, 
     the Housing Foundation and Accreditation Board established 
     under title IV, and any auditor conducting an audit under 
     section 432.''.
       Page 168, line 18, before ``income'' insert ``sufficient''.
       Page 170, line 18, after ``dwelling units'' insert the 
     ``(other than public housing)''.
       Page 170, line 22, strike ``or the owner''.
       Page 171, strike line 15 and all that follows through page 
     172, line 11, and insert the following new section:

     SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.

       (a) Units Having Gross Rent Exceeding Payment Standard.--In 
     the case of a dwelling unit bearing a gross rent that exceeds 
     the payment standard established under section 353 for a 
     dwelling unit of the applicable size and located in the 
     market area in which such assisted dwelling unit is located--
       (1) the amount by which such payment standard exceeds the 
     amount of the resident contribution determined in accordance 
     with section 322(a)(1); or
       (2) in the case only of families described in paragraph (2) 
     of section 322(a), the amount by which such payment standard 
     exceeds the lesser of (i) the resident contribution 
     determined in accordance with section 322(a)(1), or (ii) 30 
     percent of the family's adjusted monthly income.
       (b) Shopping Incentive for Units Having Gross Rent Not 
     Exceeding Payment Standard.--In the case of an assisted 
     family renting an eligible dwelling unit bearing a gross rent 
     that does not exceed the payment standard established under 
     section 353 for a dwelling unit of the applicable size and 
     located in the market area in which such assisted dwelling 
     unit is located, the following requirements shall apply:
       (1) Amount of monthly assistance payment.--The amount of 
     the monthly assistance payment for housing assistance under 
     this title on behalf of the assisted family shall be the 
     amount by which the gross rent for the dwelling unit exceeds 
     the amount of the resident contribution.
       (2) Escrow of shopping incentive savings.--An amount equal 
     to 50 percent of the difference between payment standard and 
     the gross rent for the dwelling unit shall be placed in an 
     interest bearing escrow account on behalf of such family on a 
     monthly basis by the local housing and management authority. 
     Amounts in the escrow account shall be made available to the 
     assisted family on an annual basis.
       (3) Deficit reduction.--The local housing and management 
     authority making housing assistance payments on behalf of 
     such assisted family in a fiscal year shall reserve from 
     amounts made available to the authority for assistance 
     payments for such fiscal year an amount equal to the amount 
     described in paragraph (2). At the end of each fiscal year, 
     the Secretary shall recapture any such amounts reserved by 
     local housing and management authorities and such amounts 
     shall be covered into the General Fund of the Treasury of the 
     United States.

     For purposes of this section, in the case of a family 
     receiving homeownership assistance under section 329, the 
     term ``gross rent'' shall mean the homeownership costs to the 
     family as determined in accordance with guidelines of the 
     Secretary.
       Page 173, line 3, strike ``large''.
       Page 173, strike ``For purposes'' in line 15 and all that 
     follows through line 19.
       Page 174, line 5, after ``unit'' insert ``(with respect to 
     initial contract rents and any rent revisions)''.
       Page 179, line 25, strike ``section 110'' and insert 
     ``section 111''.
       Page 182, line 17, strike ``2'' and insert ``at least 2, 
     but not more than 4''.
       Page 183, after line 15, insert the following new 
     subparagraph:
       (E) At least 1 individual who has extensive experience in 
     auditing participants in government programs.

[[Page H4521]]

       Page 186, after line 2, insert the following new paragraph:
       (3) Improvement of independent audits.--Providing for the 
     development of effective means for conducting comprehensive 
     financial and performance audits of local housing and 
     management authorities under section 432 and, to the extent 
     provided in such section, providing for the conducting of 
     such audits.
       Page 186, line 3, strike ``(3)'' and insert ``(4)''.
       Page 186, strike lines 6 through 8 and insert the 
     following:

     grants under title II for the operation, maintenance, and 
     production of public housing and amounts for housing 
     assistance under title III, ensuring that financial and 
     performance audits under section 432
       Page 186, line 12, strike ``(4)'' and insert ``(5)''.
       Page 187, after line 13, insert the following new 
     subsection:
       (c) Assistance From National Center for Housing 
     Management.--
       (1) In general.--During the period referred to in 
     subsection (a), the National Center for Housing Management 
     established by Executive Order 11668 (42 U.S.C. 3531 note) 
     shall, to the extent agreed to by the Center, provide the 
     Board with ongoing assistance and advice relating to the 
     following matters:
       (A) Organizing the structure of the Board and its 
     operations.
       (B) Establishing performance standards and guidelines under 
     section 431(a).

     Such Center may, at the request of the Board, provide 
     assistance and advice with respect to matters not described 
     in paragraphs (1) and (2) and after the expiration of the 
     period referred to in subsection (a).
       (2) Assistance.--The assistance provided by such Center 
     shall include staff and logistical support for the Board and 
     such operational and managerial activities as are necessary 
     to assist the Board to carry out its functions during the 
     period referred to in subsection (a).
       Page 188, after line 22, insert the following new 
     paragraph:
       (4) HUD inspector general.--The Inspector General of the 
     Department of Housing and Urban Development shall serve the 
     Board as a principal adviser with respect to all aspects of 
     annual financial and performance audits of local housing and 
     management authorities under section 432. The Inspector 
     General may advise the Board with respect to other activities 
     and functions of the Board.
       Page 189, line 4 and 5, strike ``research or surveys'' and 
     insert ``evaluations under section 404(b), audits of local 
     housing and management authorities as provided under section 
     432, research, and surveys''.
       Page 189, line 6, before the period insert the following: 
     ``, and may enter into contracts with the National Center for 
     Housing Management to conduct the functions assigned to the 
     Center under this title''.
       Page 190, line 5, strike ``and'' and insert a comma.
       Page 190, line 6, before the period insert ``, and 
     conducting audits of authorities under section 432''.
       Page 190, after line 13, insert the following new 
     subsection:
       (a) Report on Coordination With HUD Functions.--Not later 
     than the expiration of the 12-month period beginning upon the 
     date of the enactment of this Act, the Board shall submit a 
     report to the Congress that--
       (1) identifies and describes the processes, procedures, and 
     activities of the Department of Housing and Urban Development 
     which may duplicate functions of the Board, and makes 
     recommendations regarding activities of the Department that 
     may no longer be necessary as a result of improved auditing 
     of authorities pursuant to this title;
       (2) makes recommendations for any changes to Federal law 
     necessary to improve auditing of local housing and management 
     authorities; and
       (3) makes recommendations regarding the review and 
     evaluation functions currently performed by the Department of 
     Housing and Urban Development that may be more efficiently 
     performed by the Board and should be performed by the Board, 
     and those that should continue to be performed by the 
     Department.
       Page 190, line 14, before ``The'' insert ``(b) Annual 
     Reports.--''.
       Page 190, after line 23, insert the following new section:

     SEC. 408. GAO AUDIT.

       The activities and transactions of the Board shall be 
     subject to audit by the Comptroller General of the United 
     States under such rules and regulations as may be prescribed 
     by the Comptroller General. The representatives of the 
     General Accounting Office shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of the Board that are necessary to facilitate an 
     audit.
       Page 196, strike line 10 and all that follows through page 
     198, line 25, and insert the following new section:

     SEC. 432. FINANCIAL AND PERFORMANCE AUDITS.

       (a) Requirement.--A financial and performance audit under 
     this section shall be conducted for each local housing and 
     management authority for each fiscal year that the authority 
     receives grant amounts under this Act, as provided under one 
     of the following paragraphs:
       (1) Lhma provides for audit.--If neither the Secretary nor 
     the Board takes action under paragraph (2) or (3), the 
     Secretary shall require the local housing and management 
     authority to have the audit conducted. The Secretary may 
     prescribe that such audits be conducted pursuant to 
     guidelines set forth by the Department.
       (2) Secretary requests board to provide for audit.--The 
     Secretary may request the Board to contract directly with an 
     auditor to have the audit conducted for the authority.
       (3) Board provides for audit.--The Board may notify the 
     Secretary that it will contract directly with an auditor to 
     have the audit conducted for the authority.
       (b) Other Audits.--Pursuant to risk assessment strategies 
     designed to ensure the integrity of the programs for 
     assistance under this Act, which shall be established by the 
     Inspector General for the Department of Housing and Urban 
     Development in consultation with the Board, the Inspector 
     General may request the Board to conduct audits under this 
     subsection of local housing and management authorities. Such 
     audits may be in addition to, or in place of, audits under 
     subsection (a), as the Board shall provide.
       (c) Submission of Results.--
       (1) Submission to secretary and board.--The results of any 
     audit conducted under this subsection shall be submitted to 
     the local housing and management authority, the Secretary, 
     and the Board.
       (2) Submission to local officials.--
       (A) Requirement.--A local housing and management authority 
     shall submit each audit conducted under this section to any 
     local elected official or officials responsible for 
     appointing the members of the board of directors (or other 
     similar governing body) of the local housing and management 
     authority for review and comment. Any such comments shall be 
     submitted, together with the audit, to the Secretary and the 
     Board and the Secretary and the Board shall consider such 
     comments in reviewing the audit.
       (B) Timing.--An audit shall be submitted to local officials 
     as provided in subparagraph (A)--
       (i) in the case of an audit conducted under subsection 
     (a)(1), not later than 60 days before the local housing and 
     management authority submits the audit to the Secretary and 
     the Board; or
       (ii) in the case of an audit under paragraph (2) or (3) of 
     subsection (a) or under subsection (b), not later than 60 
     days after the authority receives the audit.
       (d) Procedures.-- The requirements for financial and 
     performance audits under this section shall--
       (1) be established by the Board, in consultation with the 
     Inspector General of the Department of Housing and Urban 
     Development;
       (2) provide for the audit to be conducted by an independent 
     auditor selected--
       (A) in the case of an audit under subsection (a)(1), by the 
     authority; and
       (B) in the case of an audit under paragraph (2) or (3) of 
     subsection (a) or under subsection (b), by the Board;
       (3) authorize the auditor to obtain information from a 
     local housing and management authority, to access any books, 
     documents, papers, and records of an authority that are 
     pertinent to this Act and assistance received pursuant to 
     this Act, and to review any reports of an authority to the 
     Secretary;
       (4) impose sufficient requirements for obtaining 
     information so that the audits are useful to the Board in 
     evaluating local housing and management authorities; and
       (5) include procedures for testing the reliability of 
     internal financial controls of local housing and management 
     authorities.
       (e) Purpose.--Audits under this section shall be designed 
     to--
       (1) evaluate the financial performance and soundness and 
     management performance of the local housing and management 
     authority board of directors (or other similar governing 
     body) and the authority management officials and staff;
       (2) assess the compliance of an authority with all aspects 
     of the standards and guidelines established under section 
     431(a)(1);
       (3) provide information to the Secretary and the Board 
     regarding the financial performance and management of the 
     authority and to determine whether a review under section 
     225(d) or 353(c) is required; and
       (4) identify potential problems in the operations, 
     management, functioning of a local housing and management 
     authority at a time before such problems result in serious 
     and complicated deficiencies.
       (f) Inapplicability of Single Audit Act.--Notwithstanding 
     the first sentence of section 7503(a) of title 31, United 
     States Code, an audit conducted in accordance with chapter 75 
     of such title shall not exempt any local housing and 
     management authority from conducting an audit under this 
     section. Audits under this section shall not be subject to 
     the requirements for audits under such chapter. An audit 
     under this section for a local housing and management 
     authority for a fiscal year shall be considered to satisfy 
     any requirements under such chapter for such fiscal year.
       (g) Withholding of Amounts for Costs of Audit.--
       (1) Lhma responsible for audit.--If the Secretary requires 
     a local housing and management authority to have an audit 
     under this section conducted pursuant to subsection (a)(1) 
     and determines that the authority has failed to take the 
     actions required to submit an audit under this section for a 
     fiscal year, the Secretary may--

[[Page H4522]]

       (A) arrange for, and pay the costs of, the audit and 
     withhold, from the total allocation for any fiscal year 
     otherwise payable to the authority under this Act, amounts 
     sufficient to pay for the reasonable costs of conducting an 
     acceptable audit (including, if appropriate, the reasonable 
     costs of accounting services necessary to place the 
     authority's books and records in condition that permits an 
     audit); or
       (B) request the Board to conduct the audit pursuant to 
     subsection (a)(2) and withhold amounts pursuant to paragraph 
     (2) of this subsection.
       (2) Board responsible for audit.--If the Board is 
     responsible for an audit for a local housing and management 
     authority pursuant to paragraph (2) or (3) of subsection (a), 
     subsection (b), or paragraph (1)(B) of this subsection, the 
     Secretary shall--
       (A) withhold, from the total allocation for any fiscal year 
     otherwise payable to the authority under this Act, amounts 
     sufficient to pay for the audit, but in no case more than the 
     reasonable cost of conducting an acceptable audit (including, 
     if appropriate, the reasonable costs of accounting services 
     necessary to place the authority's books and records in 
     condition that permits an audit); and
       (B) transfer such amounts to the Board.
       Page 201, line 21, strike ``to prepare''.
       Page 201, line 23, after ``housing'' insert ``or 
     functions''.
       Page 202, lines 1 and 2, strike ``to prepare''.
       Page 203, lines 17 and 18, strike ``the expiration'' and 
     all that follows through ``437(b)(2)'' on line 19, and insert 
     the following: ``such period, the Secretary shall take the 
     action authorized under subsection (b)(2) or (b)(5) of 
     section 438''.
       Page 203, line 19, strike ``437(b)(2)'' and insert 
     ``438(b)(2) or (b)(5)''.
       Page 207, line 16, strike ``section 435'' and insert 
     ``section 436''.
       Page 209, line 9, strike ``if'' and all that follows 
     through the comma on line 12.
       Page 210, line 9, before the semicolon insert ``, but only 
     after efforts to renegotiate such contracts have failed''.
       Page 210, line 19, after ``laws'' insert the following: 
     ``relating to civil service requirements, employee rights, 
     procurement, or financial or administrative controls''.
       Page 210, line 20, strike ``receiver'' and insert 
     ``Secretary''.
       Page 212, line 24, strike ``(D'' and insert ``(D)''.
       Page 212, line 25, after ``laws'' insert the following: 
     ``relating to civil service requirements, employee rights, 
     procurement, or financial or administrative controls''.
       Page 213, after line 23, insert the following new 
     subsection:
       (g) Effectiveness.--The provisions of this section shall 
     apply with respect to actions taken before, on, or after the 
     effective date of this Act and shall apply to any receivers 
     appointed for a public housing agency before the date of 
     enactment of this Act.
       Page 215, line 7, strike ``for the first year beginning 
     after the date of enactment of this Act''.
       Page 216, line 2, strike ``section 438(b)'' and insert 
     ``section 439(b)''.
       Page 217, line 7, strike ``section 432'' and insert 
     ``section 433''.
       Page 217, line 9, strike ``and 436'' and insert ``436, and 
     438''.
       Page 218, strike lines 19 through 22 (and redesignate 
     subsequent paragraphs accordingly).
       Page 226, after line 9, insert the following new 
     subsection:
       (f) Conversion of Project-Based Assistance to Choice-Based 
     Rental Assistance.--
       (1) Section 8 project-based contracts.--Upon the request of 
     the owner of a multifamily housing project for which project-
     based assistance is provided under a contract entered into 
     under section 8 of the United States Housing Act of 1937 (as 
     in effect before the enactment of this Act), notwithstanding 
     the termination date of such contract the Secretary shall 
     provide for a reduction in the number of dwelling units 
     assisted under the contract, which may not exceed 40 percent 
     of the units in the project and shall be subject to the 
     requirements in paragraphs (3) and (4) of this subsection.
       (2) Section 236 contracts.--Upon the request of the owner 
     of a multifamily housing project for which assistance is 
     provided under a contract for interest reduction payments 
     under section 236 of the National Housing Act, 
     notwithstanding the termination date of such contract the 
     Secretary shall provide for a reduction in the number of 
     dwelling units assisted under the contract, which may not 
     exceed 40 percent of the units in the project. The amount of 
     the interest reduction payments made on behalf of the owner 
     shall be reduced by a fraction for which the numerator is the 
     aggregate basic rent for the units which are no longer 
     assisted under the contract for interest reduction payments 
     and the denominator is the aggregate basic rents for all 
     units in the project. The requirements of section 236(g) of 
     the National Housing Act shall not apply to rental charges 
     collected with respect to dwelling units for which assistance 
     in terminated under this paragraph. Such reduction shall be 
     subject to the requirements in paragraphs (3) and (4) of this 
     subsection.
       (3) Eligible units.--A unit may be removed from coverage by 
     a contract pursuant to paragraph (1) or (2) only--
       (A) upon the vacancy of the unit; and
       (B) in the case of--
       (i) units assisted under section 8 of the United States 
     Housing Act of 1937, if the contract rent for the unit is not 
     less than the applicable fair market rental established 
     pursuant to section 8(c) of such Act for the area in which 
     the unit is located; or
       (ii) units assisted under an interest reduction contract 
     under section 236 of the National Housing Act, if the 
     reduction in the amount of interest reduction payments on a 
     monthly basis is less than the aggregate amount of fair 
     market rents established pursuant to section 8(c) of such Act 
     for the number and type of units which are removed from 
     coverage by the contract.
       (4) Recapture.--Any budget authority that becomes available 
     to a local housing and management authority or the Secretary 
     pursuant to this section shall be used to provide choice-
     based rental assistance under title III, during the term 
     covered by such contract.
       Page 231, line 24, after the period insert the following 
     new sentence: ``The plan shall be developed with the 
     participation of residents and appropriate law enforcement 
     officials.''.
       Page 240, after the matter following line 17, insert the 
     following new subsection:
       (i) Treatment of NOFA.--The cap limiting assistance under 
     the Notice of Funding Availability issued by the Department 
     of Housing and Urban Development in the Federal Register of 
     April 8, 1996, shall not apply to a local housing and 
     management authority within an area designated as a high 
     intensity drug trafficking area under section 1005(c) of the 
     Anti-Drug Abuse Act of 1988 (21 U.S.C. 1504(c).
       At the end of title V of the bill, insert the following new 
     sections:

     SEC. 504. TREATMENT OF CERTAIN PROJECTS.

       Rehabilitation activities undertaken by Pennrose Properties 
     in connection with 40 dwelling units for senior citizens in 
     the Providence Square development located in New Brunswick, 
     New Jersey, are hereby deemed to have been conducted pursuant 
     to the approval of and an agreement with the Secretary of 
     Housing and Urban Development under clauses (i) and (ii) of 
     the third sentence of section 8(d)(2)(A) of the United States 
     Housing Act of 1937 (as in effect before the date of the 
     enactment of this Act).

     SEC. 505. AMENDMENTS RELATING TO COMMUNITY DEVELOPMENT 
                   ASSISTANCE.

       (a) Eligibility of Metropolitan Cities.--Section 102(a)(4) 
     of the Housing and Community Development Act of 1974 (42 
     U.S.C. 5302(a)(4)) is amended--
       (1) by striking the second sentence and inserting the 
     following new sentence: ``Any city that was classified as a 
     metropolitan city for at least 1 year after September 30, 
     1989, pursuant to the first sentence of this paragraph, shall 
     remain classified as a metropolitan city by reason of this 
     sentence until the first year for which data from the 2000 
     Decennial Census is available for use for purposes of 
     allocating amounts this title.''; and
       (2) by striking the fifth sentence and inserting the 
     following new sentence: ``Notwithstanding that the population 
     of a unit of general local government was included, after 
     September 30, 1989, with the population of an urban county 
     for purposes of qualifying for assistance under section 106, 
     the unit of general local government may apply for assistance 
     under section 106 as a metropolitan city if the unit meets 
     the requirements of the second sentence of this paragraph.''.
       (b) Public Services Limitation.--Section 105(a)(8) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5305(a)(8)) is amended by striking ``through 1997'' and 
     inserting ``through 1998''.

     SEC. 506. AUTHORITY TO TRANSFER SURPLUS REAL PROPERTY FOR 
                   HOUSING USE.

       Section 203 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 484) is amended by adding at 
     the end the following new subsection:
       ``(r)(1) Under such regulations as the Administrator may 
     prescribe, and with the written consent of appropriate local 
     governmental authorities, the Administrator may transfer to 
     any nonprofit organization which exists for the primary 
     purpose of providing housing or housing assistance for 
     homeless individuals or families, such surplus real property, 
     including buildings, fixtures, and equipment situated 
     thereon, as is needed for housing use.
       ``(2) Under such regulations as the Administrator may 
     prescribe, and with the written consent of appropriate local 
     governmental authorities, the Administrator may transfer to 
     any nonprofit organization which exists for the primary 
     purpose of providing housing or housing assistance for low-
     income individuals or families such surplus real property, 
     including buildings, fixtures, and equipment situated 
     thereon, as is needed for housing use.
       ``(3) In making transfers under this subsection, the 
     Administrator shall take such action, which shall include 
     grant agreements with an organization receiving a grant, as 
     may be necessary to ensure that--
       ``(A) assistance provided under this subsection is used to 
     facilitate and encourage homeownership opportunities through 
     the construction of self-help housing, under terms which 
     require that the person receiving the assistance contribute a 
     significant amount of labor toward the construction; and
       ``(B) the dwellings constructed with property transferred 
     under this subsection shall be quality dwellings that comply 
     with local building and safety codes and standards and shall 
     be available at prices below the prevailing market prices.

[[Page H4523]]

       ``(4)(A) Where the Administrator has transferred a 
     significant portion of a surplus real property, including 
     buildings, fixtures, and equipment situated thereon, under 
     paragraph (1) or (2) of this subsection, the transfer of the 
     entire property shall be deemed to be in compliance with 
     title V of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11411 et seq.).
       ``(B) For the purpose of this paragraph, the term `a 
     significant portion of a surplus real property' means a 
     portion of surplus real property--
       ``(i) which constitutes at least 5 acres of total acreage;
       ``(ii) whose fair market value exceeds $100,000; or
       ``(iii) whose fair market value exceeds 15 percent of the 
     surplus property's fair market value.
       ``(5) The provisions of this section shall not apply to 
     buildings and property at military installations that are 
     approved for closure under the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) and shall not supersede the 
     provisions of section 2(e) of the Base Closure Community 
     Redevelopment and Homeless Assistance Act of 1994 (10 U.S.C. 
     2687 note).''.

     SEC. 507. RURAL HOUSING ASSISTANCE.

       The last sentence of section 520 of the Housing Act of 1949 
     (42 U.S.C. 1490) is amended by inserting before the period 
     the following: ``, and the city of Altus, Oklahoma, shall be 
     considered a rural area for purposes of this title until the 
     receipt of data from the decennial census in the year 2000''.

     SEC. 508. TREATMENT OF OCCUPANCY STANDARDS.

       (a) National Standard Prohibited.--The Secretary of Housing 
     and Urban Development shall not directly or indirectly 
     establish a national occupancy standard.
       (b) State Standard.--If a State establishes an occupancy 
     standard--
       (1) such standard shall be presumed reasonable for purposes 
     of any laws administered by the Secretary; and
       (2) the Secretary shall not suspend, withdraw, or deny 
     certification of any State or local public agency based in 
     whole or in part on that State occupancy standard or its 
     operation.
       (c) Absence of State Standard.--If a State fails to 
     establish an occupancy standard, an occupancy standard of 2 
     persons per bedroom established by a housing provider shall 
     be presumed reasonable for the purposes of any laws 
     administered by the Secretary.
       (d) Definition.--
       (1) General rule.--Except as provided in paragraph (2), the 
     term ``occupancy standard'' means a law, regulation, or 
     housing provider policy that establishes a limit on the 
     number of residents a housing provider can properly manage in 
     a dwelling for any 1 or more of the following purposes--
       (A) providing a decent home and services for each resident;
       (B) enhancing the livability of a dwelling for all 
     residents, including the dwelling for each particular 
     resident; and
       (C) avoiding undue physical deterioration of the dwelling 
     and property.
       (2) Exception.--The term ``occupancy standard'' does not 
     include a Federal, State, or local restriction regarding the 
     maximum number of persons permitted to occupy a dwelling for 
     the sole purpose of protecting the health and safety of the 
     residents of a dwelling, including building and housing code 
     provisions.
       (e) Effective Date.--This section shall take effect January 
     1, 1996.

     SEC. 509. IMPLEMENTATION OF PLAN.

       (a) Implementation.--Within 120 days after the enactment of 
     this Act, the Secretary of Housing and Urban Development 
     shall implement the Ida Barbour Revitalization Plan of the 
     City of Portsmouth, Virginia, in a manner consistent with 
     existing limitations under law. The Secretary shall consider 
     and make any waivers to existing regulations consistent with 
     such plan to enable timely implementation of such plan.
       (b) Report.--Such city shall submit a report to the 
     Secretary on progress in implementing the plan not later than 
     1 year after the date of the enactment of this Act and 
     annually thereafter through the year 2000. The report shall 
     include quantifiable measures revealing the increase in 
     homeowners, employment, tax base, voucher allocation, 
     leverage ratio of funds, impact on and compliance with the 
     city's consolidated plan, identification of regulatory and 
     statutory obstacles which have or are causing unnecessary 
     delays in the plan's successful implementation or are 
     contributing to unnecessary costs associated with the 
     revitalization, and any other information as the Secretary 
     considers appropriate.

     SEC. 510. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

       (a) Home Investment Partnerships.--The Cranston-Gonzalez 
     National Affordable Housing Act is amended as follows:
       (1) Definitions.--In section 104(10) (42 U.S.C. 
     12704(10))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (2) Income targeting.--In section 214(1)(A) (42 U.S.C. 
     12744(1)(A))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (3) Rent limits.--In section 215(a)(1)(A) (42 U.S.C. 
     12745(a)(1)(A))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (b) CDBG.--Section 102(a)(20) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by 
     striking subparagraph (B) and inserting the following new 
     subparagraph:
       ``(B) The Secretary may--
       ``(i) with respect to any reference in subparagraph (A) to 
     50 percent of the median income of the area involved, 
     establish percentages of median income for any area that are 
     higher or lower than 50 percent if the Secretary finds such 
     variations to be necessary because of unusually high or low 
     family incomes in such area; and
       ``(ii) with respect to any reference in subparagraph (A) to 
     80 percent of the median income of the area involved, 
     establish a percentage of median income for any area that is 
     higher than 80 percent if the Secretary finds such variation 
     to be necessary because of unusually low family incomes in 
     such area.''.

     SEC. 511. AMENDMENTS RELATING TO SECTION 236 PROGRAM.

       Section 236(f)(1) of the National Housing Act (12 U.S.C. 
     1715z-1) (as amended by section 405(d)(1) of The Balanced 
     Budget Downpayment Act, I, and by section 228(a) of The 
     Balanced Budget Downpayment Act, II) is amended--
       (1) in the second sentence, by striking ``the lower of 
     (i)'';
       (2) in the second sentence, by striking ``(ii) the fair 
     market rental established under section 8(c) of the United 
     States Housing Act of 1937 for the market area in which the 
     housing is located, or (iii) the actual rent (as determined 
     by the Secretary) paid for a comparable unit in comparable 
     unassisted housing in the market area in which the housing 
     assisted under this section is located,''; and
       (3) by inserting after the second sentence the following: 
     ``However, in the case of a project which contains more than 
     5,000 units, is subject to an interest reduction payments 
     contract, and is financed under a State or local program, the 
     Secretary may reduce the rental charge ceiling, but in no 
     case shall the rent be below basic rent. For plans of action 
     approved for capital grants under the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990 or the 
     provisions of the Emergency Low Income Housing Preservation 
     Act of 1987, the rental charge for each dwelling unit shall 
     be at the basic rental charge or such greater amount, not 
     exceeding the lower of (i) the fair market rental charge 
     determined pursuant to this paragraph, or (ii) the actual 
     rent paid for a comparable unit in comparable unassisted 
     housing in the market area in which the housing is located, 
     as represents 30 percent of the tenant's adjusted income, but 
     in no case shall the rent be below basic rent.''.

     SEC. 512. PROSPECTIVE APPLICATION OF GOLD CLAUSES.

       Section 5118(d)(2) of title 31, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``This paragraph shall continue to apply to any obligations 
     issued on or before October 27, 1977, notwithstanding any 
     assignment and/or novation of such obligations after such 
     date, unless all parties to the assignment and/or novation 
     specifically agree to include a gold clause in the new 
     agreement.''.

     SEC. 513. MOVING TO WORK DEMONSTRATION FOR THE 21ST CENTURY.

       (a) Purpose.--The purpose of this demonstration under this 
     section is to give local housing and management authorities 
     and the Secretary of Housing and Urban Development the 
     flexibility to design and test various approaches for 
     providing and administering housing assistance that--
       (1) reduce cost and achieve greater cost effectiveness in 
     Federal expenditures;
       (2) give incentives to families with children where the 
     head of household is working, seeking work, or preparing for 
     work by participating in job training, educational programs, 
     or programs that assist people to obtain employment and 
     become economically self-sufficient; and
       (3) increase housing choices for low-income families.
       (b) Program Authority.--
       (1) Selection of participants.--The Secretary of Housing 
     and Urban Development shall conduct a demonstration program 
     under this section beginning in fiscal year 1997 under which 
     local housing and management authorities (including Indian 
     housing authorities) administering the public or Indian 
     housing program and the choice-based rental assistance 
     program under title III of this Act shall be selected by the 
     Secretary to participate. In first year of the demonstration, 
     the Secretary shall select 100 local housing and management 
     authorities to participate. In each of the next 2 year of the 
     demonstration, the Secretary shall select 100 additional 
     local housing and management authorities per year to 
     participate. During the first year of the demonstration, the 
     Secretary shall select for participation any authority that 
     complies with the requirement under subsection (d) and owns 
     or administers more than 99,999 dwelling units of public 
     housing.
       (2) Training.--The Secretary, in consultation with 
     representatives of public housing

[[Page H4524]]

     interests, shall provide training and technical assistance 
     during the demonstration and conduct detailed evaluations of 
     up to 30 such agencies in an effort to identify replicable 
     program models promoting the purpose of the demonstration.
       (3) Use of housing assistance.--Under the demonstration, 
     notwithstanding any provision of this Act, an authority may 
     combine operating assistance provided under section 9 of the 
     United States Housing Act of 1937 (as in effect before the 
     date of the enactment of this Act), modernization assistance 
     provided under section 14 of such Act, assistance provided 
     under section 8 of such Act for the certificate and voucher 
     programs, assistance for pubic housing provided under title 
     II of this Act, and choice-based rental assistance provided 
     under title III of this Act, to provide housing assistance 
     for low-income families and services to facilitate the 
     transition to work on such terms and conditions as the 
     authority may propose.
       (c) Application.--An application to participate in the 
     demonstration--
       (1) shall request authority to combine assistance refereed 
     to in subsection (b)(3);
       (2) shall be submitted only after the local housing and 
     management authority provides for citizen participation 
     through a public hearing and, if appropriate, other means;
       (3) shall include a plan developed by the authority that 
     takes into account comments from the public hearing and any 
     other public comments on the proposed program, and comments 
     from current and prospective residents who would be affected, 
     and that includes criteria for--
       (A) establishing a reasonable rent policy, which shall be 
     designed to encourage employment and self-sufficiency by 
     participating families, consistent with the purpose of this 
     demonstration, such as by excluding some or all of a family's 
     earned income for purposes of determining rent; and
       (B) assuring that housing assisted under the demonstration 
     program meets housing quality standards established or 
     approved by the Secretary; and
       (4) may request assistance for training and technical 
     assistance to assist with design of the demonstration and to 
     participate in a detailed evaluation.
       (d) Selection Criteria.--In selecting among applications, 
     the Secretary shall take into account the potential of each 
     authority to plan and carry out a program under the 
     demonstration and other appropriate factors as reasonably 
     determined by the Secretary. An authority shall be eligible 
     to participate in any fiscal year only if the most recent 
     score for the authority under the public housing management 
     assessment program under section 6(j) of the United States 
     Housing Act of 1937 (as in effect before the date of the 
     enactment of this Act) is 90 or greater.
       (e) Applicability of Certain Provisions.--
       (1) Section 261 of this Act shall continue to apply to 
     public housing notwithstanding any use of the housing under 
     this demonstration.
       (2) Section 113 of this Act shall apply to housing assisted 
     under the demonstration, other than housing assisted solely 
     due to occupancy by families receiving tenant-based 
     assistance.
       (f) Effect on Program Allocations.--The amount of 
     assistance received under titles II and III by a local 
     housing and management authority participating in the 
     demonstration under this section shall not be diminished by 
     its participation.
       (g) Records, Reports, and Audits.--
       (1) Keeping of records.--Each authority shall keep such 
     records as the Secretary may prescribe as reasonably 
     necessary to disclose the amounts and the disposition of 
     amounts under this demonstration, to ensure compliance with 
     the requirements of this section, and to measure performance.
       (2) Reports.--Each authority shall submit to the Secretary 
     a report, or series of reports, in a form and at a time 
     specified by the Secretary. Each report shall--
       (A) document the use of funds made available under this 
     section;
       (B) provide such data as the Secretary may request to 
     assist the Secretary in assessing the demonstration; and
       (C) describe and analyze the effect of assisted activities 
     in addressing the objectives of this part.
       (3) Access to documents by the secretary.--The Secretary 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records that are pertinent 
     to assistance in connection with, and the requirements of, 
     this section.
       (4) Access to documents by the comptroller general.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records that are pertinent to 
     assistance in connection with, and the requirements of, this 
     section.
       (h) Evaluation and Report.--
       (1) Consultation with lhma and family representatives.--In 
     making assessments throughout the demonstration, the 
     Secretary shall consult with representatives of local housing 
     and management authorities and residents.
       (2) Report to congress.--Not later than 180 days after the 
     end of the third year of the demonstration, the Secretary 
     shall submit to the Congress a report evaluating the programs 
     carried out under the demonstration. The report shall also 
     include findings and recommendations for any appropriate 
     legislative action.

     SEC. 514. OCCUPANCY SCREENING AND EVICTIONS FROM FEDERALLY 
                   ASSISTED HOUSING.

       (a) Occupancy Screening.--Section 642 of the Housing and 
     Community Development Act of 1992 (42 U.S.C. 13602)--
       (1) by inserting ``(a) General Criteria.--'' before ``In''; 
     and
       (2) by adding at the end the following new subsections:
       ``(b) Authority to Deny Occupancy for Criminal Offenders.--
     In selecting tenants for occupancy of dwelling units in 
     federally assisted housing, if the owner of such housing 
     determines that an applicant for occupancy in the housing or 
     any member of the applicant's household is or was, during the 
     preceding 3 years, engaged in any activity described in 
     paragraph (2)(C) of section 645, the owner may--
       ``(1) deny such applicant occupancy and consider the 
     applicant (for purposes of any waiting list) as not having 
     applied for such occupancy ; and
       ``(2) after the expiration of the 3-year period beginning 
     upon such activity, require the applicant, as a condition of 
     occupancy in the housing or application for occupancy in the 
     housing, to submit to the owner evidence sufficient (as the 
     Secretary shall by regulation provide) to ensure that the 
     individual or individuals in the applicant's household who 
     engaged in criminal activity for which denial was made under 
     paragraph (1) have not engaged in any criminal activity 
     during such 3-year period.
       ``(c) Authority to Require Access to Criminal Records.--An 
     owner of federally assisted housing may require, as a 
     condition of providing occupancy in a dwelling unit in such 
     housing to an applicant for occupancy and the members of the 
     applicant's household, that each adult member of the 
     household provide the owner with a signed, written 
     authorization for the owner to obtain records described in 
     section 646(a) regarding such member of the household from 
     the National Crime Information Center, police departments, 
     and other law enforcement agencies.
       ``(d) Definition.--For purposes of subsections (b) and (c), 
     the term `federally assisted housing' has the meaning given 
     the term by this title, except that the term does not include 
     housing that only meets the requirements of section 
     683(2)(E).''.
       (b) Termination of Tenancy.--Subtitle C of title VI of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 
     13601 et seq.) is amended by adding at the end the following 
     new section:

     ``SEC. 645. TERMINATION OF TENANCY.

       ``Each lease for a dwelling unit in federally assisted 
     housing (as such term is defined in section 642(d)) shall 
     provide that--
       ``(1) the owner may not terminate the tenancy except for 
     violation of the terms and conditions of the lease, violation 
     of applicable Federal, State, or local law, or other good 
     cause; and
       ``(2) any activity, engaged in by the tenant, any member of 
     the tenant's household, or any guest or other person under 
     the tenant's control, that--
       ``(A) threatens the health or safety of, or right to 
     peaceful enjoyment of the premises by, other tenants or 
     employees of the owner or other manager of the housing,
       ``(B) threatens the health or safety of, or right to 
     peaceful enjoyment of their residences by, persons residing 
     in the immediate vicinity of the premises, or
       ``(C) is criminal activity (including drug-related criminal 
     activity) on or off the premises, shall be cause for 
     termination of tenancy.''.
       (c) Availability of Criminal Records for Tenant Screening 
     and Eviction.--Subtitle C of title VI of the Housing and 
     Community Development Act of 1992 (42 U.S.C. 13601 et seq.) 
     is amended adding after section 645 (as added by subsection 
     (b) of this section) the following new section:

     ``SEC. 646. AVAILABILITY OF RECORDS.

       ``(a) In General.--
       ``(1) Provision of information.--Notwithstanding any other 
     provision of law other than paragraph (2), upon the request 
     of an owner of federally assisted housing, the National Crime 
     Information Center, a police department, and any other law 
     enforcement agency shall provide to the owner of federally 
     assisted housing information regarding the criminal 
     conviction records of an adult applicant for, or tenants of, 
     the federally assisted housing for purposes of applicant 
     screening, lease enforcement, and eviction, but only if the 
     owner requests such information and presents to such Center, 
     department, or agency with a written authorization, signed by 
     such applicant, for the release of such information to such 
     owner.
       ``(2) Exception.--The information provided under paragraph 
     (1) may not include any information regarding any criminal 
     conviction of an applicant or resident for any act (or 
     failure to act) for which the applicant or resident was not 
     treated as an adult under the laws of the convicting 
     jurisdiction.
       ``(b) Confidentiality.--An owner receiving information 
     under this section may use such information only for the 
     purposes provided in this section and such information may 
     not be disclosed to any person who is not an officer or 
     employee of the owner. The Secretary shall, by regulation, 
     establish procedures necessary to ensure that information 
     provided under this section to an owner is used, and 
     confidentiality of such information is maintained, as 
     required under this section.
       ``(c) Opportunity to Dispute.--Before an adverse action is 
     taken with regard to assistance for federally assisted 
     housing on the

[[Page H4525]]

     basis of a criminal record, the owner 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.
       ``(d) Fee.--An owner of federally assisted housing may be 
     charged a reasonable fee for information provided under 
     subsection (a).
       ``(e) Records Management.--Each owner of federally assisted 
     housing that receives criminal record information under this 
     section shall establish and implement a system of records 
     management that ensures that any criminal record received by 
     the owner is--
       ``(1) maintained confidentially;
       ``(2) not misused or improperly disseminated; and
       ``(3) destroyed, once the purpose for which the record was 
     requested has been accomplished.
       ``(f) Penalty.--Any person who knowingly and willfully 
     requests or obtains any information concerning an applicant 
     for, or resident of, federally assisted housing pursuant to 
     the authority under this section under false pretenses, or 
     any person who knowingly and willfully discloses any such 
     information in any manner to any individual not entitled 
     under any law to receive it, shall be guilty of a misdemeanor 
     and fined not more than $5,000. The term `person' as used in 
     this subsection shall include an officer or employee of any 
     local housing and management authority.
       ``(g) Civil action.--Any applicant for, or resident of, 
     federally assisted housing affected by (1) a negligent or 
     knowing disclosure of information referred to in this section 
     about such person by an officer or employee of any owner, 
     which disclosure is not authorized by this section, or (2) 
     any other negligent or knowing action that is inconsistent 
     with this section, may bring a civil action for damages and 
     such other relief as may be appropriate against any owner 
     responsible for such unauthorized action. The district court 
     of the United States in the district in which the affected 
     applicant or resident resides, in which such unauthorized 
     action occurred, or in which the officer or employee alleged 
     to be responsible for any such unauthorized action resides, 
     shall have jurisdiction in such matters. Appropriate relief 
     that may be ordered by such district courts shall include 
     reasonable attorney's fees and other litigation costs.
       ``(h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Adult.--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.
       ``(2) Federally assisted housing.--The term `federally 
     assisted housing' has the meaning given the term by this 
     title, except that the term does not include housing that 
     only meets the requirements of section 683(2)(E).''.
       (d) Definitions.--Section 683 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 13643) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), by striking ``section 3(b) of the 
     United States Housing Act of 1937'' and inserting ``section 
     102 of the United States Housing Act of 1996'';
       (B) in subparagraph (B), by inserting before the semicolon 
     at the end the following; ``(as in effect before the 
     enactment of the United States Housing Act of 1996)'';
       (C) in subparagraph (F), by striking ``and'' at the end;
       (D) in subparagraph (G), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following new subparagraph:
       ``(H) for purposes only of subsections (b) and (c) of 
     sections 642, and section 645 and 646, housing assisted under 
     section 515 of the Housing Act of 1949.'';
       (2) in paragraph (4), by striking ``public housing agency'' 
     and inserting ``local housing and management authority''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Drug-related criminal activity.--The term `drug-
     related criminal activity' means the illegal manufacture, 
     sale, distribution, use, or possession with intent to 
     manufacture, sell, distribute, or use, of a controlled 
     substance (as defined in section 102 of the Controlled 
     Substances Act).''.
       At the end of the bill, insert the following new title:

   TITLE VI--NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAMS COST

     SEC. 601. ESTABLISHMENT.

       There is established a commission to be known as the 
     National Commission on Housing Assistance Programs Cost (in 
     this title referred to as the ``Commission'').

     SEC. 602. MEMBERSHIP.

       (a) Appointment.--The Commission shall be composed of 9 
     members, who shall be appointed not later than 90 days after 
     the date of the enactment of this Act. The members shall be 
     as follows:
       (1) 3 members to be appointed by the Secretary of Housing 
     and Urban Development;
       (2) 3 members appointed by the Chairman and Ranking 
     Minority Member of the Subcommittee on Housing Opportunity 
     and Community Development of the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Chairman and 
     Ranking Minority Member of the Subcommittee on VA, HUD, and 
     Independent Agencies of the Committee on Appropriations of 
     the Senate; and
       (3) 3 members appointed by the Chairman and Ranking 
     Minority Member of the Subcommittee on Housing and Community 
     Opportunity of the Committee on Banking and Financial 
     Services of the House of Representatives and the Chairman and 
     Ranking Minority Member of the Subcommittee on VA, HUD, and 
     Independent Agencies of the Committee on Appropriations of 
     the House of Representatives.
       (b) Qualifications.--The 3 members of the Commission 
     appointed under each of paragraphs (1), (2), and (3) of 
     subsection (a)--
       (1) shall all be experts in the field of accounting, 
     economics, cost analysis, finance, or management; and
       (2) shall include--
       (A) 1 individual who is an elected public official at the 
     State or local level;
       (B) 1 individual who is a distinguished academic engaged in 
     teaching or research;
       (C) 1 individual who is a business leader, financial 
     officer, management or accounting expert.

     In selecting members of the Commission for appointment, the 
     individuals appointing shall ensure that the members selected 
     can analyze the Federal assisted housing programs (as such 
     term is defined in section 604(a)) on an objective basis and 
     that no member of the Commission has a personal financial or 
     business interest in any such program.

     SEC. 603. ORGANIZATION.

       (a) Chairperson.--The Commission shall elect a chairperson 
     from among members of the Commission.
       (b) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business, 
     but a lesser number may hold hearings.
       (c) Voting.--Each member of the Commission shall be 
     entitled to 1 vote, which shall be equal to the vote of every 
     other member of the Commission.
       (d) Vacancies.--Any vacancy on the Commission shall not 
     affect its powers, but shall be filled in the manner in which 
     the original appointment was made.
       (e) Prohibition on Additional Pay.--Members of the 
     Commission shall serve without compensation.
       (f) Travel Expenses.--Each member shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.

     SEC. 604. FUNCTIONS.

       (a) In General.--The Commission shall --
       (1) analyze the full cost to the Federal Government, public 
     housing agencies, State and local governments, and other 
     parties, per assisted household, of the Federal assisted 
     housing programs, and shall conduct the analysis on a 
     nationwide and regional basis and in a manner such that 
     accurate per unit cost comparisons may be made between 
     Federal assisted housing programs; and
       (2) estimate the future liability that will be borne by 
     taxpayers as a result of activities under the Federal 
     assisted housing programs before the date of the enactment of 
     this Act.
       (b) Definition.--For purposes of this section, the term 
     ``Federal assisted housing programs'' means--
       (1) the public housing program under the United States 
     Housing Act of 1937 (as in effect before the date of the 
     enactment of this Act);
       (2) the public housing program under title II of this Act;
       (3) the certificate program for rental assistance under 
     section 8(b)(1) of the United States Housing Act of 1937 (as 
     in effect before the date of the enactment of this Act);
       (4) the voucher program for rental assistance under section 
     8(o) of the United States Housing Act of 1937 (as in effect 
     before the date of the enactment of this Act);
       (5) the programs for project-based assistance under section 
     8 of the United States Housing Act of 1937 (as in effect 
     before the date of the enactment of this Act);
       (6) the rental assistance payments program under section 
     521(a)(2)(A) of the Housing Act of 1949;
       (7) the program for housing for the elderly under section 
     202 of the Housing Act of 1959;
       (8) the program for housing for persons with disabilities 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act;
       (9) the program for financing housing by a loan or mortgage 
     insured under section 221(d)(3) of the National Housing Act 
     that bears interest at a rate determined under the proviso of 
     section 221(d)(5) of such Act;
       (10) the program under section 236 of the National Housing 
     Act;
       (11) the program for constructed or substantial 
     rehabilitation under section 8(b)(2) of the United States 
     Housing Act of 1937, as in effect before October 1, 1983; and
       (12) any other program for housing assistance administered 
     by the Secretary of Housing and Urban Development or the 
     Secretary of Agriculture, under which occupancy in the 
     housing assisted or housing assistance provided is based on 
     income, as the Commission may determine.
       (c) Final Report.--Not later than 18 months after the 
     Commission is established pursuant to section 602(a), the 
     Commission shall submit to the Secretary and to the Congress 
     a final report which shall contain the results of the 
     analysis and estimates required under subsection (a).
       (c) Limitation.--The Commission may not make any 
     recommendations regarding Federal housing policy.

[[Page H4526]]

     SEC. 605. POWERS.

       (a) Hearings.--The Commission may, for the purpose of 
     carrying out this title, hold such hearings and sit and act 
     at such times and places as the Commission may find 
     advisable.
       (b) Rules and Regulations.--The Commission may adopt such 
     rules and regulations as may be necessary to establish its 
     procedures and to govern the manner of its operations, 
     organization and personnel.
       (c) Assistance From Federal Agencies.--
       (1) Information.--The Commission may request from any 
     department or agency of the United States, and such 
     department or agency shall provide to the Commission in a 
     timely fashion, such data and information as the Commission 
     may require for carrying out this title, including--
       (A) local housing management plans submitted to the 
     Secretary of Housing and Urban Development under section 107;
       (B) block grant contracts under title II;
       (C) contracts under section 302 for assistance amounts 
     under title III; and
       (D) audits submitted to the Secretary of Housing and Urban 
     Development under section 403.
       (2) Administrative support.--The General Services 
     Administration shall provide to the Commission, on a 
     reimbursable basis, such administrative support services as 
     the Commission may request.
       (3) Personnel details and technical assistance.--Upon the 
     request of the chairperson of the Commission, the Secretary 
     of Housing and Urban Development shall, to the extent 
     possible and subject to the discretion of the Secretary--
       (A) detail any of the personnel of the Department of 
     Housing and Urban Development, on a nonreimbursable basis, to 
     assist the Commission in carrying out its duties under this 
     title; and
       (B) provide the Commission with technical assistance in 
     carrying out its duties under this title.
       (d) Information From Local Housing and Management 
     Authorities.--The Commission shall have access, for the 
     purpose of carrying out its functions under this title, to 
     any books, documents, papers, and records of a local housing 
     and management authority that are pertinent to this Act and 
     assistance received pursuant to this Act.
       (e) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal agencies.
       (f) Contracting.--The Commission may, to the extent and in 
     such amounts as are provided in appropriations Acts, enter 
     into contracts necessary to carry out its duties under this 
     title.
       (g) Staff.--
       (1) Executive director.--The Commission shall appoint an 
     executive director of the Commission who shall be compensated 
     at a rate fixed by the Commission, but which shall not exceed 
     the rate established for level V of the Executive Schedule 
     under title 5, United States Code.
       (2) Personnel.--In addition to the executive director, the 
     Commission may appoint and fix the compensation of such 
     personnel as it deems advisable, in accordance with the 
     provisions of title 5, United States Code, governing 
     appointments to the competitive service, and the provisions 
     of chapter 51 and subchapter III of chapter 53 of such title, 
     relating to classification and General Schedule pay rates.
       (3) Limitation.--Paragraphs (1) and (2) shall be effective 
     only to the extent and in such amounts as are provided in 
     appropriations Acts.
       (4) Selection criteria.--In appointing an executive 
     director and staff, the Commission shall ensure that the 
     individuals appointed can conduct any functions they may have 
     regarding the Federal assisted housing programs (as such term 
     is defined in section 604(a)) on an objective basis and that 
     no such individual has a personal financial or business 
     interest in any such program.
       (h) Advisory Committee.--The Commission shall be considered 
     an advisory committee within the meaning of the Federal 
     Advisory Committee Act (5 U.S.C. App.).

     SEC. 606. FUNDING.

       Of any amounts made available for policy, research, and 
     development activities of the Department of Housing and Urban 
     Development, there shall be available for carrying out this 
     title $750,000, for fiscal year 1997. Any such amounts so 
     appropriated shall remain available until expended.

     SEC. 607. SUNSET.

       The Commission shall terminate upon the expiration of the 
     18-month period beginning upon the date that the Commission 
     is established pursuant to section 602(a).

                               H.R. 2406

                        Offered By: Mrs. Maloney

       Amendment No. 21: Page 37, line 19, strike ``A'' and insert 
     ``(a) In General.--Except as provided in subsections (b) and 
     (c), a''.
       Page 37, line 25, strike ``Notwithstanding the preceding 
     sentence, pet'' and insert the following:
       (b) Federally Assisted Rental Housing for the Elderly or 
     Disabled.--Pet
       Page 38, after line 5, insert the following new subsection:
       (c) Elderly Families in Public and Assisted Housing.--
     Responsible ownership of common household pets shall not be 
     denied any elderly or disabled family who resides in a 
     dwelling unit in public housing or an assisted dwelling unit 
     (as such term is defined in section 371), subject to the 
     reasonable requirements of the local housing and management 
     authority or the owner of the assisted dwelling unit, as 
     applicable. This subsection shall not apply to units in 
     public housing or assisted dwelling units that are located in 
     federally assisted rental housing for the elderly or 
     handicapped referred to in subection (b).

                               H.R. 2406

                         Offered By: Mr. Roemer

       Amendmenmt No. 22: At the end of the bill, insert the 
     following new title:
    TITLE VI--NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY 
                     STANDARDS CONSENSUS COMMITTEE

     SEC. 601. SHORT TITLE; REFERENCE.

       (a) Short Title.--This title may be cited as the ``National 
     Manufactured Housing Construction and Safety Standards Act of 
     1996''.
       (b) Reference.--Whenever in this title an amendment is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to that section or other provision of the Housing 
     and Community Development Act of 1974.

     SEC. 602. STATEMENT OF PURPOSE.

       Section 602 (42 U.S.C. 5401) is amended by striking the 
     first sentence and inserting the following: ``The Congress 
     declares that the purposes of this title are to reduce the 
     number of personal injuries and deaths and property damage 
     resulting from manufactured home accidents and to establish a 
     balanced consensus process for the development, revision, and 
     interpretation of Federal construction and safety standards 
     for manufactured homes.''.

     SEC. 603. DEFINITIONS.

       (a) In General.--Section 603 (42 U.S.C. 5402) is amended--
       (1) in paragraph (2), by striking ``dealer'' and inserting 
     ``retailer'';
       (2) in paragraph (12), by striking ``and'' at the end;
       (3) in paragraph (13), by striking the period at the end 
     and inserting a semicolon; and
       (4) by adding at the end the following new paragraphs:
       ``(14) `consensus committee' means the committee 
     established under section 604(a)(7); and
       ``(15) `consensus standards development process' means the 
     process by which additions and revisions to the Federal 
     manufactured home construction and safety standards shall be 
     developed and recommended to the Secretary by the consensus 
     committee.''.
       (b) Conforming Amendments.--
       (1) Occurrences of ``dealer''.--The Act (42 U.S.C. 5401 et 
     seq.) is amended by striking ``dealer'' and inserting 
     ``retailer'' in each of the following provisions:
       (A) In section 613, each place such term appears.
       (B) In section 614(f), each place such term appears.
       (C) In section 615(b)(1).
       (D) In section 616.
       (2) Other amendments.--The Act (42 U.S.C. 5401 et seq.) is 
     amended--
       (A) in section 615(b)(3), by striking ``dealer or dealers'' 
     and inserting ``retailer or retailers''; and
       (B) by striking ``dealers'' and inserting ``retailers'' 
     each place such term appears--
       (i) in section 615(d);
       (ii) in section 615(f); and
       (iii) in section 623(c)(9).

     SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY 
                   STANDARDS.

       Section 604 (42 U.S.C. 5403) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following new subsections:
       ``(a) Establishment.--
       ``(1) Authority.--The Secretary shall establish, by order, 
     appropriate Federal manufactured home construction and safety 
     standards. Each such Federal manufactured home standard shall 
     be reasonable and shall meet the highest standards of 
     protection, taking into account existing State and local laws 
     relating to manufactured home safety and construction. The 
     Secretary shall issue all such orders pursuant to the 
     consensus standards development process under this 
     subsection. The Secretary may issue orders which are not part 
     of the consensus standards development process only in 
     accordance with subsection (b).
       ``(2) Consensus standards development process.--Not later 
     than 180 days after the date of enactment of the National 
     Manufactured Housing Construction and Safety Standards Act of 
     1996, the Secretary shall enter into a cooperative agreement 
     or establish a relationship with a qualified technical or 
     building code organization to administer the consensus 
     standards development process and establish a consensus 
     committee under paragraph (7). Periodically, the Secretary 
     shall review such organization's performance and may replace 
     the organization upon a finding of need.
       ``(3) Revisions.--The consensus committee established under 
     paragraph (7) shall consider revisions to the Federal 
     manufactured home construction and safety standards and shall 
     submit revised standards to the Secretary at least once 
     during every 2-year period, the first such 2-year period 
     beginning upon the appointment of the consensus committee 
     under paragraph (7). Before submitting proposed revised 
     standards to the Secretary, the consensus committee shall 
     cause the proposed revised standards to be published in the 
     Federal Register, together with a description of the 
     consensus committee's considerations and decisions under 
     subsection (e), and shall provide an opportunity

[[Page H4527]]

     for public comment. Public views and objections shall be 
     presented to the consensus committee in accordance with 
     American National Standards Institute procedures. After such 
     notice and opportunity public comment, the consensus 
     committee shall cause the recommended revisions to the 
     standards and notice of its submission to the Secretary to be 
     published in the Federal Register. Such notice shall describe 
     the circumstances under which the proposed revised standards 
     could become effective.
       ``(4) Review by secretary.--The Secretary shall either 
     adopt, modify, or reject the standards submitted by the 
     consensus committee. A final order adopting the standards 
     shall be issued by the Secretary not later than 12 months 
     after the date the standards are submitted to the Secretary 
     by the consensus committee, and shall be published in the 
     Federal Register and become effective pursuant to subsection 
     (c). If the Secretary--
       ``(A) adopts the standards recommended by the consensus 
     committee, the Secretary may issue a final order directly 
     without further rulemaking;
       ``(B) determines that any portion of the standards should 
     be rejected because it would jeopardize health or safety or 
     is inconsistent with the purposes of this title, a notice to 
     that effect, together with this reason for rejecting the 
     proposed standard, shall be published in the Federal Register 
     no later than 12 months after the date the standards are 
     submitted to the Secretary by the consensus committee;
       ``(C) determines that any portion of the standard should be 
     modified because it would jeopardize health or safety or is 
     inconsistent with the purposes of this title--
       ``(i) such determination shall be made no later that 12 
     months after the date the standards are submitted to the 
     Secretary by the consensus committee;
       ``(ii) within such 12-month period, the Secretary shall 
     cause the proposed modified standard to be published in the 
     Federal Register, together with an explanation of the reason 
     for the Secretary's determination that the consensus 
     committee recommendation needs to be modified, and shall 
     provide an opportunity for public comment in accordance with 
     the provisions of section 553 of title 5, United States Code; 
     and
       ``(iii) the final standard shall become effective pursuant 
     to subsection (c).
       ``(5) Failure to act.--If the Secretary fails to take final 
     action under paragraph (4) and publish notice of the action 
     in the Federal Register within the 12-month period under such 
     paragraph, the recommendations of the consensus committee 
     shall be considered to have been adopted by the Secretary and 
     shall take effect upon the expiration of the 180-day period 
     that begins upon the conclusion of the 12-month period. 
     Within 10 days after the expiration of the 12-month period, 
     the Secretary shall cause to be published in the Federal 
     Register notice of the Secretary's failure to act, the 
     revised standards, and the effective date of the revised 
     standards. Such notice shall be deemed an order of the 
     Secretary approving the revised standards proposed by the 
     consensus committee.
       ``(6) Interpretive bulletins.--The Secretary may issue 
     interpretive bulletins to clarify the meaning of any Federal 
     manufactured home construction and safety standards, subject 
     to the following requirements:
       ``(A) Review by consensus committee.--Before issuing an 
     interpretive bulletin, the Secretary shall submit the 
     proposed bulletin to the consensus committee and the 
     consensus committee shall have 90 days to provide written 
     comments thereon to the Secretary. If the consensus committee 
     fails to act or if the Secretary rejects any significant 
     views recommended by the consensus committee, the Secretary 
     shall explain in writing to the consensus committee, before 
     the bulletin becomes effective, the reasons for such 
     rejection.
       ``(B) Proposals.--The consensus committee may, from time to 
     time, submit to the Secretary proposals for interpretive 
     bulletins under this subsection. If the Secretary fails to 
     issue or rejects a proposed bulletin within 90 days of its 
     receipt, the Secretary shall be considered to have approved 
     the proposed bulletin and shall immediately issue the 
     bulletin.
       ``(C) Effect.--Interpretative bulletins issued under this 
     paragraph shall become binding without rulemaking.
       ``(7) Consensus committee.--
       ``(A) Purpose.--The consensus committee referred to in 
     paragraph (2) shall have as its purpose providing periodic 
     recommendations to the Secretary to revise and interpret the 
     Federal manufactured home construction and safety standards 
     and carrying out such other functions assigned to the 
     committee under this title. The committee shall be organized 
     and carry out its business in a manner that guarantees a fair 
     opportunity for the expression and consideration of various 
     positions.
       ``(B) Membership.--The consensus committee shall be 
     composed of 25 members who shall be appointed as follows:
       ``(i) Appointment by process administrator.--Members shall 
     be appointed by the qualified technical or building code 
     organization that administers the consensus standards 
     development process pursuant to paragraph (2), subject to the 
     approval of the Secretary.
       ``(ii) Balanced membership.--Members shall be appointed in 
     a manner designed to include all interested parties without 
     domination by any single interest category.
       ``(iii) Selection procedures and requirements.--Members 
     shall be appointed in accordance with selection procedures 
     for consensus committees promulgated by the American National 
     Standards Institute, except that the American National 
     Standards Institute interest categories shall be modified to 
     ensure representation on the committee by individuals 
     representing the following fields, in equal numbers under 
     each of the following subclauses:

       ``(I) Manufacturers.
       ``(II) Retailers, insurers, suppliers, lenders, community 
     owners and private inspection agencies which have a financial 
     interest in the industry.
       ``(III) Homeowners and consumer representatives.
       ``(IV) Public officials, such as those from State or local 
     building code enforcement and inspection agencies.
       ``(V) General interest, including academicians, 
     researchers, architects, engineers, private inspection 
     agencies, and others.

     Members of the consensus committee shall be qualified by 
     background and experience to participate in the work of the 
     committee, but members by reason of subclauses (III), (IV), 
     and (V), except the private inspection agencies, may not have 
     a financial interest in the manufactured home industry, 
     unless such bar to participation is waived by the Secretary. 
     The number of members by reason of subclause (V) who 
     represent private inspection agencies may not constitute more 
     than 20 percent of the total number of members by reason of 
     subclause (V). Notwithstanding any other provision of this 
     paragraph, the Secretary shall appoint a member of the 
     consensus committee, who shall not have voting privileges.
       ``(C) Meetings.--The consensus committee shall cause 
     advance notice of all meetings to be published in the Federal 
     Register and all meetings of the committee shall be open to 
     the public.
       ``(D) Authority.--Sections 203, 205, 207, and 208 of title 
     18, United States Code, shall not apply to the members of the 
     consensus committee. Members shall not be considered to be 
     special government employees for purposes of part 2634 of 
     title 5, Code of Federal Regulations. The consensus committee 
     shall not be considered an advisory committee for purposes of 
     the Federal Advisory Committee Act.
       ``(E) Administration.--The consensus committee and the 
     administering organization shall operate in conformance with 
     American National Standards Institute procedures for the 
     development and coordination of American National Standards 
     and shall apply to such Institute to obtain accreditation.
       ``(F) Staff.--The consensus committee shall be provided 
     reasonable staff resources by the administering organization. 
     Upon a showing of need and subject to the approval of the 
     Secretary, the administering organization shall furnish 
     technical support to any of the various interest categories 
     on the consensus committee.
       ``(b) Other Orders.--The Secretary may issue orders that 
     are not developed under the procedures set forth in 
     subsection (a) in order to respond to an emergency health or 
     safety issue, or to address issues on which the Secretary 
     determines the consensus committee will not make timely 
     recommendations, but only if the proposed order is first 
     submitted by the Secretary to the consensus committee for 
     review and the committee is afforded 90 days to provide its 
     views on the proposed order to the Secretary. If the 
     consensus committee fails to act within such period or if the 
     Secretary rejects any significant change recommended by the 
     consensus committee, the public notice of the order shall 
     include an explanation of the reasons for the Secretary's 
     action. The Secretary may issue such orders only in 
     accordance with the provisions of section 553 of title 5, 
     United States Code.'';
       (2) by striking subsection (e);
       (3) in subsection (f), by striking the matter preceding 
     paragraph (1) and inserting the following:
       ``(e) Considerations in Establishing and Interpreting 
     Standards.--The consensus committee, in recommending 
     standards and interpretations, and the Secretary, in 
     establishing standards or issuing interpretations under this 
     section, shall--'';
       (4) by striking subsection (g);
       (5) in the first sentence of subsection (j), by striking 
     ``subsection (f)'' and inserting ``subsection (e)''; and
       (6) by redesignating subsections (h), (i), and (j) as 
     subsections (f), (g), and (h), respectively.

     SEC. 605. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY 
                   COUNCIL.

       Section 605 (42 U.S.C. 5404) is hereby repealed.

     SEC. 606. PUBLIC INFORMATION.

       Section 607 (42 U.S.C. 5406) is amended--
       (1) in subsection (a)--
       (A) by inserting ``to the Secretary'' after ``submit''; and
       (B) by adding at the end the following new sentence: ``Such 
     cost and other information shall be submitted to the 
     consensus committee by the Secretary for its evaluation.'';
       (2) in subsection (d), by inserting ``, the consensus 
     committee,'' after ``public,''; and
       (3) by striking subsection (c) and redesignating 
     subsections (d) and (e) as subsections (c) and (d), 
     respectively.

     SEC. 607. INSPECTION FEES.

       Section 620 (42 U.S.C. 5419) is amended to read as follows:

[[Page H4528]]

       ``Sec. 620. (a) Authority To Establish Fees.--In carrying 
     out the inspections required under this title and in 
     developing standards pursuant to section 604, the Secretary 
     may establish and impose on manufactured home manufacturers, 
     distributors, and retailers such reasonable fees as may be 
     necessary to offset the expenses incurred by the Secretary in 
     conducting such inspections and administering the consensus 
     standards development process and for developing standards 
     pursuant to section 604(b), and the Secretary may use any 
     fees so collected to pay expenses incurred in connection 
     therewith. Such fees shall only be modified pursuant to 
     rulemaking in accordance with the provisions of section 553 
     of title 5, United States Code.
       ``(b) Deposit of Fees.--Fees collected pursuant to this 
     title shall be deposited in a fund, which is hereby 
     established in the Treasury for deposit of such fees. Amounts 
     in the fund are hereby available for use by the Secretary 
     pursuant to subsection (a). The use of these fees by the 
     Secretary shall not be subject to general or specific 
     limitations on appropriated funds unless use of these fees is 
     specifically addressed in any future appropriations 
     legislation. The Secretary shall provide an annual report to 
     Congress indicating expenditures under this section. The 
     Secretary shall also make available to the public, in 
     accordance with all applicable disclosure laws, regulations, 
     orders, and directives, information pertaining to such funds, 
     including information pertaining to amounts collected, 
     amounts disbursed, and the fund balance.''.

     SEC. 608. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

       Section 626 (42 U.S.C. 5425) is hereby repealed.

     SEC. 609. EFFECTIVE DATE.

       The amendments made by this title shall take effect on the 
     date of enactment of this Act, except that the amendments 
     shall have no effect on any order or interpretative bulletin 
     that is published as a proposed rule pursuant to the 
     provisions of section 553 of title 5, United States Code, on 
     or before that date.

                               H.R. 2406

                        Offered By: Mr. Sanders

       Amendment No. 23: Page 77, strike lines 7 through 9 and 
     insert the following new subparagraph:
       (B) shall be reduced by any amount the resident contributes 
     toward allowable utilities; and

                               H.R. 2406

                        Offered By: Mr. Sanders

       Amendment No. 24: Page 92, strike line 14 and insert the 
     following:
       (a) Resident councils.--
       (1) Establishment.--The residents of a public.
       Page 93, after line 3, insert the following new paragraph:
       (2) Required consultation.--
       (A) Twice annually.--Any local housing and management 
     authority that owns or administers any public housing 
     development for which a resident council has been established 
     shall consult with each such council not less than twice each 
     year regarding issues concerning such development.
       (B) Issues significantly affecting residents.--The 
     authority shall also consult with the appropriate resident 
     council for any development for which the authority will make 
     a significant decision affecting the interests of residents 
     in the development, not later than 60 days before such 
     decision is made, except in cases of compelling 
     circumstances, requiring expedited action on the part of the 
     authority, as the Secretary shall provide, in which case such 
     consultation shall be made as soon as possible. The Secretary 
     shall establish guidelines describing such significant 
     decisions, which shall include decisions regarding rent 
     levels and any changes in such levels, maintenance policies, 
     security arrangements, major renovations and repairs, 
     community policies, and demolition or sale of the 
     development.

                               H.R. 2406

                        Offered By: Mr. Sanders

       Amendment No. 25: Page 145, line 23, strike ``600'' and 
     insert ``1500''.
       Page 146, line 3, strike ``600'' and insert ``1500''.
       Page 146, line 4, strike ``600'' and insert ``1500''.

                               H.R. 2406

                        Offered By: Mr. Sanders

       Amendment No. 26: Page 147, strike lines 13 through 16 and 
     insert the following new paragraph:
       (4) Increase.--If the Secretary finds that there are higher 
     costs of administering small programs operating over large 
     geographic areas, the Secretary shall increase the fee to 
     reflect the difference in cost.

                               H.R. 2406

                        Offered By: Mr. Sanders

       Amendment No. 27: Page 157, strike lines 12 through 14 and 
     insert the following new paragraph:
       (3) shall be reduced by any amount the assisted family 
     contributes toward allowable utilities; and

                               H.R. 2406

                        Offered By: Mr. Solomon

       Amendment No. 28: Page 21, line 11, strike 11 and 12, and 
     insert the following:

     SEC. 105. LIMITATIONS ON ADMISSIONS TO ASSISTED HOUSING.

       Page 21, after line 22, insert the following new 
     subsection:
       (c) Limitation on Admission of Persons Convicted of Drug-
     Related Offenses.--Notwithstanding any other provision of 
     law, each local housing and management authority shall 
     prohibit admission and occupancy to public housing dwelling 
     units by, and assistance under title III to, any person who, 
     after the date of the enactment of this Act, has been 
     convicted of--
       (1) illegal possession with intent to sell any controlled 
     substance (as such term is defined in the Controlled 
     Substances Act); or
       (2) illegal possession of any controlled substance on 3 or 
     4 more occasions.

                               H.R. 2406

                        Offered By: Mr. Solomon

       Amendment No. 29: Page 21, line 11, strike 11 and 12, and 
     insert the following:

     SEC. 105. LIMITATIONS ON ADMISSIONS TO ASSISTED HOUSING.

       Page 21, after line 22, insert the following new 
     subsection:
       (c) Limitation on Admission of Persons Convicted of Drug-
     Related Offenses.--Notwithstanding any other provision of 
     law, each local housing and management authority shall 
     prohibit admission and occupancy to public housing dwelling 
     units by, and assistance under title III to, any person who, 
     after the date of the enactment of this Act, has been 
     convicted of illegal possession with intent to sell any 
     controlled substance (as such term is defined in the 
     Controlled Substances Act).

                               H.R. 2406

                        Offered By: Mr. Solomon

       Amendment No. 30: Page 21, line 11, strike lines 11 and 12, 
     and insert the following:

     SEC. 105. LIMITATIONS ON ADMISSIONS TO ASSISTED HOUSING.

       Page 21, after line 22, insert the following new 
     subsection:
       (c) Limitation on Admission of Persons Convicted of Drug-
     Related Offenses.--Notwithstanding any other provision of 
     law, each local housing and management authority shall 
     prohibit admission and occupancy to public housing dwelling 
     units by, and assistance under title III to, any person who, 
     after the date of the enactment of this Act, has been 
     convicted of--
       (1) illegal possession with intent to sell any controlled 
     substance (as such term is defined in the Controlled 
     Substances Act); or
       (2) illegal possession of any controlled substance on 3 or 
     more occasions.

     This subsection may not be construed to require the 
     termination of tenancy or eviction of any member of a 
     household residing in public housing, or the termination of 
     assistance of any member of an assisted family, who is not a 
     person described in the preceding sentence.

                               H.R. 2406

                        Offered By: Mr. Solomon

       Amendment No. 31: Page 21, line 11, strike lines 11 and 12, 
     and insert the following:

     SEC. 105. LIMITATIONS ON ADMISSIONS TO ASSISTED HOUSING.

       Page 21, after line 22, insert the following new 
     subsection:
       (c) Limitation on Admission of Persons Convicted of Drug-
     Related Offenses.--Notwithstanding any other provision of 
     law, each local housing and management authority shall 
     prohibit admission and occupancy to public housing dwelling 
     units by, and assistance under title III to, any person who, 
     after the date of the enactment of this Act, has been 
     convicted of illegal possession with intent to sell any 
     controlled substance (as such term is defined in the 
     Controlled Substances Act). This subsection may not be 
     construed to require the termination of tenancy or eviction 
     of any member of a household residing in public housing, or 
     the termination of assistance of any member of an assisted 
     family, who is not a person described in the preceding 
     sentence.

                               H.R. 2406

                       Offered By: Mr. Traficant

       Amendment No. 32: At the end of title V of the bill, insert 
     the following new section:

     SEC. 504. USE OF AMERICAN PRODUCTS.

       (a) Purchase of American-Made Equipment and Products.--It 
     is the sense of the Congress that, to the greatest extent 
     practicable, all equipment and products purchased with funds 
     made available in this Act should be American made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this Act, the head of each Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.

                               H.R. 2406

                       Offered By: Ms. Velazquez

       Amendment No. 33: Page 77, strike lines 6 through 14 and 
     insert the following:
       (A) except as provided in subparagraphs (B) and (C), shall 
     be an amount determined by the authority, which shall not 
     exceed $25;
       (B) in cases in which a family demonstrates that payment of 
     the amount determined under subparagraph (A) would create 
     financial hardship on the family, as determined pursuant to 
     guidelines which the Secretary shall establish, shall be an 
     amount less than the amount determined under subparagraph (A) 
     (as determined pursuant to such guidelines); and
       (C) in such other circumstances as may be provided by the 
     authority, shall be an amount less than the amount determined 
     under subparagraph (A).

[[Page H4529]]

                               H.R. 2406

                       Offered By: Ms. Velazquez

       Amendment No. 34: Page 157, line 10, after the semicolon 
     insert ``and''.
       Page 157, strike lines 11 through 18 and insert the 
     following new paragraph:
       (2)(A) except as provided in subparagraphs (B) and (C), 
     shall be an amount determined by the authority, which shall 
     not exceed $25;
       (B) in cases in which a family demonstrates that payment of 
     the amount determined under subparagraph (A) would create 
     financial hardship on the family, as determined pursuant to 
     guidelines which the Secretary shall establish, shall be an 
     amount less than the amount determined under subparagraph (A) 
     (as determined pursuant to such guidelines); and
       (C) in such other circumstances as may be provided by the 
     authority, shall be an amount less than the amount determined 
     under subparagraph (A).

                               H.R. 2406

                         Offered By: Mr. Vento

       Amendment No. 35: Page 11, line 2, strike ``authority's'' 
     and insert in lieu thereof ``Secretary's''.
       Page 13, line 10, strike ``authority's'' and insert in lieu 
     thereof ``Secretary's''.

                               H.R. 2406

                         Offered By: Mr. Vento

       Amendment No. 36: Page 239, line 11, strike ``fiscal year 
     1996'' and insert ``fiscal years 1997, 1998, 1999, 2000, and 
     2001''.
       Page 239, line 25, after the period insert``'.''.
       Page 240, strike lines 1 through 4.
       Page 240, strike line 17 and the matter following such line 
     and insert the following:
     and inserting the following new item:

``Sec. 5130 Funding.''.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 37: Page 69, line 23, after the period insert 
     the following new sentence: ``Notwithstanding any preference 
     established under section 223, in selecting residents, the 
     local housing and management authority shall not skip over 
     any applicant already on the waiting list to select an 
     applicant who has a higher income.''.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 38: Page 69, line 23, after the period insert 
     the following: ``Notwithstanding any preferences established 
     under section 223, in selecting low-income families whose 
     incomes do not exceed 30 percent of the area median income, 
     the authority shall not skip over any family on the waiting 
     list who meets such income requirement to select another 
     family who has a higher income.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 39: Page 108, lines 6 and 7, strike ``To the 
     extent budget authority is available under this title'' and 
     insert ``Using budget authority made available under 
     paragraph (4)''.
       Page 108, after line 16, insert the following new 
     paragraph:
       (2) Assistance for resident councils.--Using budget 
     authority made available under paragraph (4), the Secretary 
     shall provide financial assistance to resident councils 
     established in accordance with section 234(a) to encourage 
     increased involvement by such councils in the consideration 
     of issues affecting residents, the representation of 
     residents interests, and the consultation with local housing 
     and management authorities. Such assistance may be used for 
     activities (in addition to resident management activities 
     under paragraph (1)) that improve living conditions and 
     resident satisfaction in public housing communities, 
     including resident council capacity building, training on 
     policies governing the operation of public housing, and 
     increasing participating in consultations with local housing 
     and management authorities regarding decisions that 
     significantly affect the public housing community.
       Page 108, line 17, strike ``(2)'' and insert ``(3)''.
       Page 108, line 18, strike ``this subsection'' and insert 
     ``paragraph (1)''.
       Page 108, line 20, after the period insert the following: 
     ``The financial assistance provided under this paragraph (2) 
     with respect to any public housing development may not exceed 
     $100,000.''.
       Page 108, line 21, strike ``(3)'' and insert ``(4)''.
       Page 109, line 6, strike ``(4)'' and insert ``(5)''.
       Page 109, line 10, strike ``(5)'' and insert ``(6)''.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 40: Page 153, after line 10, insert the 
     following:
       (3) Income skipping.--Notwithstanding any preferences 
     established under this subsection, in selecting families to 
     be offered assistance, the local housing and management 
     authority shall not skip over any family already on the 
     waiting list to select any family who has a higher income.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 41: Page 156, after line 24, insert the 
     following new subsection:
       (i) Income Mix.--Of the families offered assistance by a 
     local housing and management authority after the date of 
     enactment of this Act, not less than 75 percent shall be 
     offered to low-income families whose incomes do not exceed 30 
     percent of the area median income. Notwithstanding any 
     preferences established under subsection (c), in selecting 
     low-income families whose incomes do not exceed 30 percent of 
     the area median income, the authority shall not skip over any 
     family on the waiting list who meets such income requirement 
     to select another family who has a higher income.

                               H.R. 2406

                         Offered By: Ms. Waters

       Amendment No. 42: At the end of title V, insert the 
     following new section:

     SEC. 504. LIMITATION ON EXTENT OF USE OF LOAN GUARANTEES FOR 
                   HOUSING PURPOSES.

       Section 108 of the Housing and Community Development Act of 
     1992 (42 U.S.C. 5308) is amended by inserting after 
     subsection (h) the following new section:
       ``(i) Limitation on Use.--Of any amounts obtained from 
     notes or other obligations issued by an eligible public 
     entity or public agency designated by an eligible public 
     entity and guaranteed under this section pursuant to an 
     application for a guarantee submitted after the date of the 
     enactment of the Housing and Community Development Act of 
     1992, the aggregate amount used for the purposes described in 
     clauses (2) and (4) of subsection (a), and for other housing 
     activities under the purposes described in clauses (1) and 
     (3) of subsection (a), may not exceed 10 percent of such 
     amounts obtained by the eligible public entity or agency.''.

                               H.R. 2406

                 Offered By: Mr. Watt of North Carolina

       Amendment No. 43: Page 5, strike line 20 and all that 
     follows through page 6, line 2, and insert the following new 
     paragraphs:
       (2) it is a goal of our Nation that all citizens have 
     decent and affordable housing;
       (3) our Nation should promote the goal of providing decent 
     and affordable housing for all citizens through the efforts 
     and encouragement of Federal, State, and local governments 
     and by promoting and protecting the independent and 
     collective actions of private citizens, organizations, and 
     the private sector to develop housing and strengthen their 
     own neighborhoods;
       Page 6, line 3, strike ``(3)'' and insert ``(4)''.
       Page 6, line 3, strike ``should act only'' and insert ``has 
     a responsibility to act''.
       Page 6, line 6, strike ``(4)'' and insert ``(5)''.

                               H.R. 2406

                 Offered By: Mr. Watt of North Carolina

       Amendment No. 44: Page 34, line 9, after ``determines that 
     the plan'' insert ``does not comply with Federal law or''.

                               H.R. 3286

                        Offered By: Mrs. Maloney

       Amendment No. 1: At the end of title II, insert the 
     following:

     SEC. 202. STATES REQUIRED TO HAVE STANDBY GUARDIANSHIP LAW AS 
                   A CONDITION OF ELIGIBILITY FOR FEDERAL FUNDS 
                   FOR FOSTER CARE AND ADOPTION ASSISTANCE.

       (a) In General.--Part E of title IV of the Social Security 
     Act (42 U.S.C. 670-679) is amended by inserting after section 
     477 the following:

     ``SEC. 478. STANDBY GUARDIANSHIP LAWS AND PROCEDURES.

       ``To be eligible for payments under this part, a State must 
     have in effect laws and procedures that permit any parent who 
     is chronically ill or near death, without surrendering 
     parental rights, to designate a standby guardian for the 
     parent's minor children, whose authority would take effect 
     upon--
       ``(1) the death of the parent;
       ``(2) the mental incapacity of the parent; or
       ``(3) the physical debilitation and consent of the 
     parent.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect at the end of the first calendar quarter 
     that begins 60 or more months after the date of the enactment 
     of this Act, and shall apply to payments under part E of 
     title IV of the Social Security Act for the quarter and 
     payments made under such part for any succeeding quarter.

                               H.R. 3286

                        Offered By: Mrs. Maloney

       Amendment No. 2: At the end of title II, insert the 
     following:

     SEC. 202. PLACEMENT OF FOSTER CHILDREN IN PERMANENT KINSHIP 
                   CARE ARRANGEMENTS.

       (a) State Option to Deem Kinship Placement as Adoption.--
     Section 473(a) of the Social Security Act (42 U.S.C. 673(a)) 
     is amended by adding at the end the following:
       ``(7) If a State places a child (who has been in foster 
     care under the supervision of the State) with a blood 
     relative of the child or of a half-sibling of the child, and 
     transfers legal custody of the child to the relative, 
     pursuant to a written agreement, entered into between the 
     State and the relative, that contains provisions of the type 
     described in section 475(3), then, at the option of the 
     State, for purposes of this part--
       ``(A) the placement is deemed an adoption;
       ``(B) the initiation of the proceeding to so place the 
     child is deemed an adoption proceeding;
       ``(C) the relative is deemed the adoptive parent of the 
     child;
       ``(D) the agreement is deemed an adoption assistance 
     agreement;
       ``(E) the payments made under the agreement are deemed to 
     be adoption assistance payments; and
       ``(F) any reasonable and necessary court costs, attorneys 
     fees, and other expenses

[[Page H4530]]

     which are directly related to the placement or the transfer 
     of legal custody and are not in violation of State or Federal 
     law are deemed nonrecurring adoption expenses.''.
       (b) Considerating of Kinship Placement Option at 
     Dispositional Hearing.--Section 475(5)(C) of such Act (42 
     U.S.C. 675(5)(c)) is amended by inserting ``should be placed 
     with a relative of the child as provided in section 
     473(a)(7),'' before ``should be placed for adoption''.

     SEC. 203. EFFECTIVE DATE.

       The amendments made by section 202 of this Act shall apply 
     to payments under part E of title IV of the Social Security 
     Act for quarters beginning after the date of the enactment of 
     this Act.

                               H.R. 3286

                        Offered By: Mrs. Maloney

       Amendment No. 3: At the end of title II, insert the 
     following:

     SEC. 202. FEDERAL FUNDS FOR FOSTER CARE AND ADOPTION 
                   ASSISTANCE AVAILABLE ONLY TO STATES THAT 
                   REQUIRE STATE AGENCIES, IN CONSIDERING 
                   APPLICATIONS TO ADOPT CERTAIN FOSTER CHILDREN, 
                   TO GIVE PREFERENCE TO APPLICATIONS OF A FOSTER 
                   PARENT OR CARETAKER RELATIVE OF THE CHILD.

       Section 474 of the Social Security Act (42 U.S.C. 674), as 
     amended by section 201(b) of this Act, is amended by adding 
     at the end the following:
       ``(e) Notwithstanding any other provision of this section, 
     the Secretary may not make any payment to a State under this 
     section, for any calendar quarter ending after the 5-year 
     period that begins with the date of the enactment of this 
     subsection, unless the State has in effect laws and 
     procedures requiring a State agency to complete the 
     processing of an application to adopt a child who is in 
     foster care under the responsibility of State that has been 
     submitted by a foster parent or caretaker relative of the 
     child, before completing the processing of any other 
     application to adopt the child if--
       ``(1) a court has approved a permanent plan for adoption of 
     the child, or the child has been freed for adoption; and
       ``(2) the agency with authority to place the child for 
     adoption determines that--
       ``(A) the child has substantial emotional ties to the 
     foster parent or caretaker relative, as the case may be; and
       ``(B) removal of the child from the foster parent or 
     caretaker relative, as the case may be, would be seriously 
     detrimental to the well-being of the child.''.

     SEC. 203. EFFECTIVE DATE.

       The amendment made by section 202 of this Act shall apply 
     to payments under part E of title IV of the Social Security 
     Act for quarters beginning after the date of the enactment of 
     this Act.

                               H.R. 3286

                        Offered By: Mrs. Maloney

       Amendment No. 4. At the end of title II, insert the 
     following:

     SEC. 202. PROCEDURES TO EXPEDITE THE PERMANENT PLACEMENT OF 
                   FOSTER CHILDREN.

       (a) In General.--Section 474 of the Social Security Act (42 
     U.S.C. 674), as amended by sections 201(b) and 202 of this 
     Act, is amended by adding at the end the following:
       ``(f) The Secretary may not make a payment to a State for a 
     calendar quarter under subsection (a) unless the State has in 
     effect procedures requiring the State agency, at the time a 
     child is removed from home and placed in foster care under 
     the supervision of the State, to locate any parent of the 
     child who is not living at the home, and evaluate the ability 
     of the parent to provide a suitable home for the child.''
       (b) Applicability.--The amendment made by subsection (a) of 
     this section shall not apply with respect to any child who, 
     on the date of the enactment of this Act, is in foster care 
     under the supervision of a State (as defined in section 
     1101(a)(1) of the Social Security Act for purposes of title 
     IV of such Act).

     SEC. 203. EFFECTIVE DATE.

       The amendment made by section 202 of this Act shall apply 
     to payments under part E of title IV of the Social Security 
     Act for quarters beginning after the date of the enactment of 
     this Act.

                               H.R. 3286

                        Offered By: Mrs. Maloney

       Amendment No. 5: At the end of title II, insert the 
     following:

     SEC. 202. REQUIREMENT THAT STATES ADMINISTER QUALIFYING 
                   EXAMINATIONS TO ALL STATE EMPLOYEES WITH NEW 
                   AUTHORITY TO MAKE DECISIONS REGARDING CHILD 
                   WELFARE SERVICES.

       Section 474 of the Social Security Act (42 U.S.C. 674), as 
     amended by section 201(b) of this Act, is amended by adding 
     at the end the following:
       ``(e) the Secretary may not make a payment to a State under 
     subsection (a) for any calendar quarter beginning after the 
     18-month period that begins with the date of the enactment of 
     this subsection, unless the State has in effect procedures to 
     ensure that, before the State provides to a prospective child 
     welfare decisionmaker the authority to make decisions 
     regarding child welfare services, the individual must take 
     and pass an examination, administered by the State, that 
     tests knowledge of such subjects as child development, family 
     dynamics, dysfunctional behavior, substance abuse, child 
     abuse, and community advocacy. as used in the preceding 
     sentence, the term `prospective child welfare decisionmaker' 
     means an individual who, on the date of the enactment of this 
     subsection, does not have any authority to make a decision 
     regarding child welfare services.''

     SEC. 203. EFFECTIVE DATE.

       The amendments made by section 202 of this Act shall apply 
     to payments under part E of title IV of the Social Security 
     Act for quarters beginning after the date of the enactment of 
     this Act.

                                H.R. 3286

                    Offered By: Mr. Young of Alaska

       Amendment No. 6: Strike Title III.

                               H.R. 3322

                         Offered By: Mr. Cramer

       Amendment No. 1: Page 87, lines 1 through 21, amend 
     subsection (g) to read as follows:
       (g) Amendments.--The Weather Service Modernization Act (15 
     U.S.C. 313 note) is amended--
       (1) in section 706--
       (A) by striking ``60-day'' in subsection (c)(2) and 
     inserting in lieu thereof ``30-day'';
       (B) by amending subsection (b)(6) to read as follows:
       ``(6) any recommendations of the Committee submitted under 
     section 707(c) that evaluate the certification.'';
       (C) by amending subsection (d) to read as follows:
       ``(d) Final Decision.--If the Secretary decides to close, 
     consolidate, automate, or relocate any such field office, the 
     Secretary shall publish the certification in the Federal 
     Register and submit the certification to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Science of the House of Representatives.''; and
       (D) by amending subsection (f) to read as follows:
       ``(f) Public Liaison.--The Secretary shall maintain for a 
     period of at least two years after the closure of any weather 
     office a program to--
       ``(1) provide timely information regarding the activities 
     of the National Weather Service which may affect service to 
     the community, including modernization and restructuring; and
       ``(2) work with area weather service users, including 
     persons associated with general aviation, civil defense, 
     emergency preparedness, and the news media, with respect to 
     the provision of timely weather warnings and forecasts.''; 
     and
       (2) by amending section 707(c) to read as follows:
       ``(c) Duties.--The Committee may review any certification 
     under section 706, for which the Secretary has provided a 
     notice of intent to certify, in the plan, including any 
     certification for which there is a significant potential for 
     degradation of service within the affected areas. Upon the 
     request of the Committee, the Secretary shall make available 
     to the Committee the supporting documents developed by the 
     Secretary in connection with the certification. The Committee 
     shall evaluate any certification reviewed on the basis of the 
     modernization criteria and with respect to the requirement 
     that there be no degradation of service, and advise the 
     Secretary accordingly.''.

                               H.R. 3322

                         Offered By: Mr. Cramer

       Amendment No. 2: Page 87, lines 1 through 21, amend 
     subsection (g) to read as follows:
       (g) Weather Service Modernization.--The Weather Service 
     Modernization Act (15 U.S.C. 313 note) is amended--
       (1) in section 706--
       (A) by amending subsection (b) to read as follows:
       ``(b) Certification.--The Secretary may not close, 
     consolidate, automate, or relocate any field office unless 
     the Secretary has certified to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Science of the House of Representatives that such action 
     will not result in degradation of services to the affected 
     area. Such certification shall be in accordance with the 
     modernization criteria established under section 704.'';
       (B) by striking subsections (c), (d), and (e);
       (C) by redesignating subsection (f) as subsection (d); and
       (D) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Special Circumstances.--The Secretary may not close 
     or relocate any field office which is located at an airport, 
     unless the Secretary, in consultation with the Secretary of 
     Transportation and the Committee, first conducts an air 
     safety appraisal, determines that such action will not result 
     in degradation of service and affects aircraft safety, and 
     includes such determination in the certification required 
     under subsection (b). This air safety appraisal shall be 
     issued jointly by the Department of Commerce and the 
     Department of Transportation before September 30, 1996, and 
     shall be based on a coordinated review of all the airports in 
     the United States subject to the certification requirements 
     of subsection (b). The appraisal shall--
       ``(1) consider the weather information required to safely 
     conduct aircraft operations and the extent to which such 
     information is currently derived through manual observations 
     provided by the National Weather Service and the Federal 
     Aviation Administration, and automated observations provided 
     from other sources including the Automated Weather 
     Observation Service (AWOS), the Automated Surface Observing 
     System

[[Page H4531]]

     (ASOS), and the Geostationary Operational Environmental 
     Satellite (GOES); and
       ``(2) determine whether the service provided by ASOS, and 
     ASOS augmented when necessary by human observation, provides 
     the necessary level of service consistent with the service 
     standards encompassed in the criteria for automation of the 
     field offices.''; and
       (2) in section 707--
       (A) by amending subsection (c) to read as follows:
       ``(c) Duties.--The Committee shall advise the Congress and 
     the Secretary on--
       ``(1) the implementation of the Strategic Plan, annual 
     development of the Plan, and establishment and implementation 
     of modernization criteria; and
       ``(2) matters of public safety and the provision of weather 
     services which relate to the comprehensive modernization of 
     the National Weather Service.''; and
       (B) by amending subsection (f) to read as follows:
       ``(f) Termination.--The Committee shall terminate--
       ``(1) on September 30, 1996; or
       ``(2) 90 days after the deadline for public comment on the 
     modernization criteria for closure certification published in 
     the Federal Register pursuant to section 704(b)(2),

     whichever occurs later.''.

                               H.R. 3322

                         Offered By: Mr. Gekas

       Amendment No. 3: Page 87, after line 21, insert the 
     following new subsection:
       (h) Report.--Section 704 of the Weather Service 
     Modernization Act (15 U.S.C. 313 note) is amended by adding 
     at the end the following new subsection:
       ``(c) Report.--The National Weather Service shall conduct a 
     review of the NEXRAD Network radar coverage pattern for a 
     determination of areas of inadequate radar coverage. After 
     conducting such review, the National Weather Service shall 
     prepare and submit to the Congress, no later than 1 year 
     after the date of the enactment of the Omnibus Civilian 
     Science Authorization Act of 1996, a report which--
       ``(1) assesses the feasibility of existing and future 
     Federal Aviation Administration Terminal Doppler Weather 
     Radars to provide reliable weather radar data, in a cost-
     efficient manner, to nearby weather forecast offices; and
       ``(2) makes recommendations for the implementation of the 
     findings of the report.''.

                               H.R. 3322

                      Offered By: Ms. Jackson-Lee

       Amendment No. 4: Page 30, after line 13, insert the 
     following new section:

     SEC. 218. EARTH OBSERVING SYSTEM IMPLEMENTATION.

       (a) Finding.--The Congress finds that the National Research 
     Council's 1995 review of the Earth Observing System and 
     Mission to Planet Earth validated the scientific requests and 
     priorities of the Mission to Planet Earth program.
       (b) Implementation.--Notwithstanding any other provision of 
     this Act, the National Aeronautics and Space Administration 
     should implement the recommendations of the National Research 
     Council's 1995 review of the Earth Observing System and 
     Mission to Planet Earth, including the recommendations that 
     ``NASA should implement most of the near-term components of 
     the MTPE/EOS, including Landsat 7, AM-1, PM-1, and the 
     Tropical Rainfall Measuring Mission (TRMM), without delay or 
     reduction in overall observing capability'', and that 
     ``Chemistry-1 mission should not be delayed''.
       Amend the table of contents accordingly.

                               H.R. 3322

                      Offered By: Ms. Jackson-Lee

       Amendment No. 5: Page 118, line 16, strike paragraph (1).
       Page 118, line 17, through page 119, line 12, redesignate 
     paragraphs (2) through (11) as paragraphs (1) through (10), 
     respectively.

                               H.R. 3322

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 6: Page 118, line 18, strike paragraph (3).
       Page 118, line 19, through page 119, line 12, redesignate 
     paragraphs (4) through (11) as paragraphs (3) through (10), 
     respectively.

                               H.R. 3322

                       Offered By: Mr. Thornberry

       Amendment No. 7: Page 87, after line 21, insert the 
     following new subsection:
       (h) NEXRAD Operational Availability and Reliability.--(1) 
     The Secretary of Defense, in conjunction with the 
     Administrator of the National Oceanic and Atmospheric 
     Administration, shall take immediate steps to ensure that 
     NEXRADs operated by the Department of Defense that provide 
     primary detection coverage over a portion of their range 
     function as fully committed, reliable elements of the 
     national weather radar network, operating with the same 
     standards, quality, and availability as the National Weather 
     Service-operated NEXRADs.
       (2) NEXRADs operated by the Department of Defense that 
     provide primary detection coverage over a portion of their 
     range are to be considered as integral parts of the National 
     Weather Radar Network.