[Congressional Record Volume 142, Number 65 (Friday, May 10, 1996)]
[House]
[Pages H4837-H4880]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   UNITED STATES HOUSING ACT OF 1996

  The text of the bill (H.R. 2406), as passed by the House on May 9, 
1996, is as follows:

       Resolved, That the bill from the Senate (S. 1260) entitled 
     ``An Act to reform and consolidate the public and assisted 
     housing programs of the United States, and to redirect 
     primary responsibility for these programs from the Federal 
     Government to States and localities, and for other 
     purposes'', do pass with the following amendments: Strike out 
     all after the enacting clause, and insert:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``United 
     States Housing Act of 1996''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

[[Page H4838]]

Sec. 2. Declaration of policy to renew American neighborhoods.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Statement of purpose.
Sec. 102. Definitions.
Sec. 103. Organization of local housing and management authorities.
Sec. 104. Determination of adjusted income and median income.
Sec. 105. Occupancy limitations based on illegal drug activity and 
              alcohol abuse.
Sec. 106. Community work and family self-sufficiency requirement.
Sec. 107. Local housing management plans.
Sec. 108. Review of plans.
Sec. 109. Reporting requirements.
Sec. 110. Pet ownership.
Sec. 111. Administrative grievance procedure.
Sec. 112. Headquarters reserve fund.
Sec. 113. Labor standards.
Sec. 114. Nondiscrimination.
Sec. 115. Prohibition on use of funds.
Sec. 116. Inapplicability to Indian housing.
Sec. 117. Effective date and regulations.

                        TITLE II--PUBLIC HOUSING

                        Subtitle A--Block Grants

Sec. 201. Block grant contracts.
Sec. 202. Block grant authority, amount, and eligibility.
Sec. 203. Eligible and required activities.
Sec. 204. Determination of grant allocation.
Sec. 205. Sanctions for improper use of amounts.

           Subtitle B--Admissions and Occupancy Requirements

Sec. 221. Low-income housing requirement.
Sec. 222. Family eligibility.
Sec. 223. Preferences for occupancy.
Sec. 224. Admission procedures.
Sec. 225. Family rental payment.
Sec. 226. Lease requirements.
Sec. 227. Designated housing for elderly and disabled families.

                         Subtitle C--Management

Sec. 231. Management procedures.
Sec. 232. Housing quality requirements.
Sec. 233. Employment of residents.
Sec. 234. Resident councils and resident management corporations.
Sec. 235. Management by resident management corporation.
Sec. 236. Transfer of management of certain housing to independent 
              manager at request of residents.
Sec. 237. Resident opportunity program.

                       Subtitle D--Homeownership

Sec. 251. Resident homeownership programs.

Subtitle E--Disposition, Demolition, and Revitalization of Developments

Sec. 261. Requirements for demolition and disposition of developments.
Sec. 262. Demolition, site revitalization, replacement housing, and 
              choice-based assistance grants for developments.
Sec. 263. Voluntary voucher system for public housing.

                     Subtitle F--General Provisions

Sec. 271. Conversion to block grant assistance.
Sec. 272. Payment of non-Federal share.
Sec. 273. Definitions.
Sec. 274. Authorization of appropriations for block grants.
Sec. 275. Authorization of appropriations for operation safe home.

TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR 
                          LOW-INCOME FAMILIES

                         Subtitle A--Allocation

Sec. 301. Authority to provide housing assistance amounts.
Sec. 302. Contracts with LHMA's.
Sec. 303. Eligibility of LHMA's for assistance amounts.
Sec. 304. Allocation of amounts.
Sec. 305. Administrative fees.
Sec. 306. Authorizations of appropriations.
Sec. 307. Conversion of section 8 assistance.

   Subtitle B--Choice-Based Housing Assistance for Eligible Families

Sec. 321. Eligible families and preferences for assistance.
Sec. 322. Resident contribution.
Sec. 323. Rental indicators.
Sec. 324. Lease terms.
Sec. 325. Termination of tenancy.
Sec. 326. Eligible owners.
Sec. 327. Selection of dwelling units.
Sec. 328. Eligible dwelling units.
Sec. 329. Homeownership option.
Sec. 330. Assistance for rental of manufactured homes.

    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

Sec. 351. Housing assistance payments contracts.
Sec. 352. Amount of monthly assistance payment.
Sec. 353. Payment standards.
Sec. 354. Reasonable rents.
Sec. 355. Prohibition of assistance for vacant rental units.

            Subtitle D--General and Miscellaneous Provisions

Sec. 371. Definitions.
Sec. 372. Rental assistance fraud recoveries.
Sec. 373. Study regarding geographic concentration of assisted 
              families.

 TITLE IV--ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING AND MANAGEMENT 
                              AUTHORITIES

         Subtitle A--Housing Foundation and Accreditation Board

Sec. 401. Establishment.
Sec. 402. Membership.
Sec. 403. Functions.
Sec. 404. Initial establishment of standards and procedures for LHMA 
              compliance.
Sec. 405. Powers.
Sec. 406. Fees.
Sec. 407. Reports.
Sec. 408. GAO Audit.

    Subtitle B--Accreditation and Oversight Standards and Procedures

Sec. 431. Establishment of performance benchmarks and accreditation 
              procedures.
Sec. 432. Financial and performance audit.
Sec. 433. Accreditation.
Sec. 434. Classification by performance category.
Sec. 435. Performance agreements for authorities at risk of becoming 
              troubled.
Sec. 436. Performance agreements and CDBG sanctions for troubled 
              LHMA's.
Sec. 437. Option to demand conveyance of title to or possession of 
              public housing.
Sec. 438. Removal of ineffective LHMA's.
Sec. 439. Mandatory takeover of chronically troubled PHA's.
Sec. 440. Treatment of troubled PHA's.
Sec. 441. Maintenance of and access to records.
Sec. 442. Annual reports regarding troubled LHMA's.
Sec. 443. Applicability to resident management corporations.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.
Sec. 502. Conforming and technical provisions.
Sec. 503. Amendments to Public and Assisted Housing Drug Elimination 
              Act of 1990.
Sec. 504. Treatment of certain projects.
Sec. 505. Amendments relating to community development assistance.
Sec. 506. Authority to transfer surplus real property for housing use.
Sec. 507. Rural housing assistance.
Sec. 508. Treatment of occupancy standards.
Sec. 509. Implementation of plan.
Sec. 510. Income eligibility for HOME and CDBG programs.
Sec. 511. Amendments relating to section 236 program.
Sec. 512. Prospective application of gold clauses.
Sec. 513. Moving to work demonstration for the 21st century.
Sec. 514. Occupancy screening and evictions from federally assisted 
              housing.
Sec. 515. Use of American products.
Sec. 516. Limitation on extent of use of loan guarantees for housing 
              purposes.
Sec. 517. Consultation with affected areas in settlement of litigation.

   TITLE VI--NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAMS COST

Sec. 601. Establishment.
Sec. 602. Membership.
Sec. 603. Organization.
Sec. 604. Functions.
Sec. 605. Powers.
Sec. 606. Funding.
Sec. 607. Sunset.

             TITLE VII--NATIVE AMERICAN HOUSING ASSISTANCE

Sec. 701. Short title.
Sec. 702. Congressional findings.
Sec. 703. Administration through Office of Native American Programs.
Sec. 704. Definitions.

            Subtitle A--Block Grants and Grant Requirements

Sec. 711. Block grants.
Sec. 712. Local housing plans.
Sec. 713. Review of plans.
Sec. 714. Treatment of program income and labor standards.
Sec. 715. Environmental review.
Sec. 716. Regulations.
Sec. 717. Effective date.
Sec. 718. Authorization of appropriations.

               Subtitle B--Affordable Housing Activities

Sec. 721. National objectives and eligible families.
Sec. 722. Eligible affordable housing activities.
Sec. 723. Required affordable housing activities.
Sec. 724. Types of investments.
Sec. 725. Low-income requirement and income targeting.
Sec. 726. Certification of compliance with subsidy layering 
              requirements.
Sec. 727. Lease requirements and tenant selection.
Sec. 728. Repayment.
Sec. 729. Continued use of amounts for affordable housing.

                Subtitle C--Allocation of Grant Amounts

Sec. 741. Annual allocation.
Sec. 742. Allocation formula.

              Subtitle D--Compliance, Audits, and Reports

Sec. 751. Remedies for noncompliance.
Sec. 752. Replacement of recipient.
Sec. 753. Monitoring of compliance.
Sec. 754. Performance reports.
Sec. 755. Review and audit by Secretary.
Sec. 756. GAO audits.
Sec. 757. Reports to Congress.

     Subtitle E--Termination of Assistance for Indian Tribes under 
                         Incorporated Programs

Sec. 761. Termination of Indian public housing assistance under United 
              States Housing Act of 1937.
Sec. 762. Termination of new commitments for rental assistance.
Sec. 763. Termination of youthbuild program assistance.
Sec. 764. Termination of HOME program assistance.
Sec. 765. Termination of housing assistance for the homeless.

[[Page H4839]]

Sec. 766. Savings provision.
Sec. 767. Effective date.

     Subtitle F--Loan Guarantees for Affordable Housing Activities

Sec. 771. Authority and requirements.
Sec. 772. Security and repayment.
Sec. 773. Payment of interest.
Sec. 774. Treasury borrowing.
Sec. 775. Training and information.
Sec. 776. Limitations on amount of guarantees.
Sec. 777. Effective date.

       Subtitle G--Other Housing Assistance for Native Americans

Sec. 781. Loan guarantees for Indian housing.
Sec. 782. 50-year leasehold interest in trust or restricted lands for 
              housing purposes.
Sec. 783. Training and technical assistance.
Sec. 784. Effective date.

   TITLE VIII--NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY 
                     STANDARDS CONSENSUS COMMITTEE

Sec. 801. Short title; reference.
Sec. 802. Statement of purpose.
Sec. 803. Definitions.
Sec. 804. Federal manufactured home construction and safety standards.
Sec. 805. Abolishment of National Manufactured Home Advisory Council.
Sec. 806. Public information.
Sec. 807. Inspection fees.
Sec. 808. Elimination of annual report requirement.
Sec. 809. Effective date.

     SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN 
                   NEIGHBORHOODS.

       The Congress hereby declares 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) the Federal Government cannot through its direct action 
     alone provide for the housing of every American citizen, or 
     even a majority of its citizens, but it is the responsibility 
     of the Government to promote and protect the independent and 
     collective actions of private citizens to develop housing and 
     strengthen their own neighborhoods;
       (3) the Federal Government should act where there is a 
     serious need that private citizens or groups cannot or are 
     not addressing responsibly;
       (4) housing is a fundamental and necessary component of 
     bringing true opportunity to people and communities in need, 
     but providing physical structures to house low-income 
     families will not by itself pull generations up from poverty;
       (5) it is a goal of our Nation that all citizens have 
     decent and affordable housing; and
       (6) 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.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. STATEMENT OF PURPOSE.

       The purpose of this Act is to promote safe, clean, and 
     healthy housing that is affordable to low-income families, 
     and thereby contribute to the supply of affordable housing, 
     by--
       (1) deregulating and decontrolling public housing agencies, 
     which in this Act are referred to as ``local housing and 
     management authorities'', and thereby enable them to perform 
     as property and asset managers;
       (2) providing for more flexible use of Federal assistance 
     to local housing and management authorities, allowing the 
     authorities to leverage and combine assistance amounts with 
     amounts obtained from other sources;
       (3) facilitating mixed income communities;
       (4) increasing accountability and rewarding effective 
     management of local housing and management authorities;
       (5) creating incentives and economic opportunities for 
     residents of dwelling units assisted by local housing and 
     management authorities to work, become self-sufficient, and 
     transition out of public housing and federally assisted 
     dwelling units;
       (6) recreating the existing rental assistance voucher 
     program so that the use of vouchers and relationships between 
     landlords and tenants under the program operate in a manner 
     that more closely resembles the private housing market; and
       (7) remedying troubled local housing and management 
     authorities and replacing or revitalizing severely distressed 
     public housing developments.

     SEC. 102. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Disabled family.--The term ``disabled family'' means a 
     family whose head (or his or her spouse), or whose sole 
     member, is a person with disabilities. Such term includes 2 
     or more 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.
       (2) 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 such term is defined in section 102 of the 
     Controlled Substances Act).
       (3) Elderly families and near elderly families.--The terms 
     ``elderly family'' and ``near-elderly family'' mean a family 
     whose head (or his or her spouse), or whose sole member, is 
     an elderly person or a near-elderly person, respectively. 
     Such terms include 2 or more elderly persons or near-elderly 
     persons 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.
       (4) Elderly person.--The term ``elderly person'' means a 
     person who is at least 62 years of age.
       (5) Family.--The term ``family'' includes a family with or 
     without children, an elderly family, a near-elderly family, a 
     disabled family, and a single person.
       (6) Income.--The term ``income'' means, with respect to a 
     family, income from all sources of each member of the 
     household, as determined in accordance with criteria 
     prescribed by the applicable local housing and management 
     authority and the Secretary, except that the following 
     amounts shall be excluded:
       (A) Any amounts not actually received by the family.
       (B) Any amounts that would be eligible for exclusion under 
     section 1613(a)(7) of the Social Security Act.
       (7) Local housing and management authority.--The term 
     ``local housing and management authority'' is defined in 
     section 103.
       (8) Local housing management plan.--The term ``local 
     housing management plan'' means, with respect to any fiscal 
     year, the plan under section 107 of a local housing and 
     management authority for such fiscal year.
       (9) 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, as determined by the Secretary 
     with adjustments for smaller and larger families, 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.
       (10) Low-income housing.--The term ``low-income housing'' 
     means dwellings that comply with the requirements--
       (A) under subtitle B of title II for assistance under such 
     title for the dwellings; or
       (B) under title III for rental assistance payments under 
     such title for the dwellings.
       (11) Near-elderly person.--The term ``near-elderly person'' 
     means a person who is at least 55 years of age.
       (12) Person with disabilities.--The term ``person with 
     disabilities'' means a person who--
       (A) has a disability as defined in section 223 of the 
     Social Security Act; or
       (B) 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. Notwithstanding any other provision of law, no 
     individual shall be considered a person with disabilities, 
     for purposes of eligibility for public housing under title II 
     of this Act, solely on the basis of any drug or alcohol 
     dependence. The Secretary shall consult with other 
     appropriate Federal agencies to implement the preceding 
     sentence.
       (13) Public housing.--The term ``public housing'' means 
     housing, and all necessary appurtenances thereto, that--
       (A) is low-income housing or low-income dwelling units in 
     mixed income housing (as provided in section 221(c)(2)); and
       (B)(i) is subject to an annual block grant contract under 
     title II; or
       (ii) was subject to an annual block grant contract under 
     title II (or an annual contributions contract under the 
     United States Housing Act of 1937) which is not in effect, 
     but for which occupancy is limited in accordance with the 
     requirements under section 222(a).
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (15) State.--The term ``State'' means the States of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, Guam, the Virgin Islands, American Samoa, and any 
     other territory or possession of the United States and Indian 
     tribes.
       (16) Very low-income family.--The term ``very low-income 
     family'' means a low-income family whose income does not 
     exceed 50 percent of the median family income for the area, 
     as determined by the Secretary with adjustments for smaller 
     and larger families, except that the Secretary may, for 
     purposes of this paragraph, establish income ceilings higher 
     or lower than 50 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.

     SEC. 103. ORGANIZATION OF LOCAL HOUSING AND MANAGEMENT 
                   AUTHORITIES.

       (a) Requirements.--For purposes of this Act, the terms 
     ``local housing and management authority'' and ``authority'' 
     mean any entity that--
       (1) is--
       (A) a public housing agency that was authorized under the 
     United States Housing Act of

[[Page H4840]]

     1937 to engage in or assist in the development or operation 
     of low-income housing;
       (B) authorized under this Act to engage in or assist in the 
     development or operation of low-income housing by any State, 
     county, municipality, or other governmental body or public 
     entity;
       (C) an entity authorized by State law to administer choice-
     based housing assistance under title III; or
       (D) an entity selected by the Secretary, pursuant to 
     subtitle B of title IV, to manage housing; and
       (2) complies with the requirements under subsection (b).

     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 designated housing entity, as such term is defined 
     in section 704.
       (b) Governance.--
       (1) Board of directors.--Each local housing and management 
     authority shall have a board of directors or other form of 
     governance as prescribed in State or local law. No person may 
     be barred from serving on such board or body because of such 
     person's residency in a public housing development or status 
     as an assisted family under title III.
       (2) Resident membership.--
       (A) In general.--Except as provided in subparagraph (B), in 
     localities in which a local housing and management authority 
     is governed by a board of directors or other similar body, 
     the board or body shall include not less than 1 member 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.
       (B) Exceptions.--The requirement in subparagraph (A) with 
     respect to elected public housing resident members and 
     resident members shall not apply to--
       (i) any State or local governing body that serves as a 
     local housing and management authority for purposes of this 
     Act and whose responsibilities include substantial activities 
     other than acting as the local housing and management 
     authority, except that such requirement shall apply to any 
     advisory committee or organization that is established by 
     such governing body and whose responsibilities relate only to 
     the governing body's functions as a local housing and 
     management authority for purposes of this Act;
       (ii) any local housing and management authority that owns 
     or operates less than 250 public housing dwelling units 
     (including any authority that does not own or operate public 
     housing);
       (iii) any local housing and management authority in a State 
     in which State law specifically precludes public housing 
     residents or assisted families from serving on the board of 
     directors or other similar body of an authority; or
       (iv) any local housing and management authority in a State 
     that requires the members of the board of directors or other 
     similar body of a local housing and management authority to 
     be salaried and to serve on a full-time basis.
       (3) Full participation.--No local housing and management 
     authority may limit or restrict the capacity or offices in 
     which a member of such board or body may serve on such board 
     or body solely because of the member's status as a resident 
     member.
       (4) Conflicts of interest.--The Secretary shall establish 
     guidelines to prevent conflicts of interest on the part of 
     members of the board or directors or governing body of a 
     local housing and management authority.
       (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; 
     and
       (II) have not been convicted of a felony and do not reside 
     in a household that includes an individual convicted of a 
     felony;

       (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.
       (c) Establishment of Policies.--Any rules, regulations, 
     policies, standards, and procedures necessary to implement 
     policies required under section 107 to be included in the 
     local housing management plan for a local housing and 
     management authority shall be approved by the board of 
     directors or similar governing body of the authority and 
     shall be publicly available for review upon request.

     SEC. 104. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

       (a) Adjusted Income.--For purposes of this Act, the term 
     ``adjusted income'' means, with respect to a family, the 
     difference between the income of the members of the family 
     residing in a dwelling unit or the persons on a lease and the 
     amount of any income exclusions for the family under 
     subsections (b) and (c), as determined by the local housing 
     and management authority.
       (b) Mandatory Exclusions From Income.--In determining 
     adjusted income, a local housing and management authority 
     shall exclude from the annual income of a family the 
     following amounts:
       (1) Elderly and disabled families.--$400 for any elderly or 
     disabled family.
       (2) Medical expenses.--The amount by which 3 percent of the 
     annual family income is exceeded by the sum of--
       (A) unreimbursed medical expenses of any elderly family;
       (B) unreimbursed medical expenses of any nonelderly family, 
     except that this subparagraph shall apply only to the extent 
     approved in appropriation Acts; and
       (C) unreimbursed reasonable attendant care and auxiliary 
     apparatus expenses for each handicapped member of the family, 
     to the extent necessary to enable any member of such family 
     (including such handicapped member) to be employed.
       (3) Child care expenses.--Any reasonable child care 
     expenses necessary to enable a member of the family to be 
     employed or to further his or her education.
       (4) Minors, students, and persons with disabilities.--$480 
     for each member of the family residing in the household 
     (other than the head of the household or his or her spouse) 
     who is under 18 years of age or is attending school or 
     vocational training on a full-time basis, or who is 18 years 
     of age or older and is a person with disabilities.
       (5) Child support payments.--Any payment made by a member 
     of the family for the support and maintenance of any child 
     who does not reside in the household, except that the amount 
     excluded under this paragraph may not exceed $480 for each 
     child for whom such payment is made.
       (c) Permissive Exclusions From Income.--In determining 
     adjusted income, a local housing and management authority 
     may, in the discretion of the authority, establish exclusions 
     from the annual income of a family. Such exclusions may 
     include the following amounts:
       (1) Excessive travel expenses.--Excessive travel expenses 
     in an amount not to exceed $25 per family per week, for 
     employment- or education-related travel.
       (2) Earned income.--An amount of any earned income of the 
     family, established at the discretion of the local housing 
     and management authority, which may be based on--
       (A) all earned income of the family,
       (B) the amount earned by particular members of the family;
       (C) the amount earned by families having certain 
     characteristics; or
       (D) the amount earned by families or members during certain 
     periods or from certain sources.
       (3) Others.--Such other amounts for other purposes, as the 
     local housing and management authority may establish.
       (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 or establish area median incomes 
     and income ceilings and limits as if such portion included 
     Westchester and Rockland Counties.

     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

[[Page H4841]]

     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.
       (d) 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.

     SEC. 106. COMMUNITY WORK AND FAMILY SELF-SUFFICIENCY 
                   REQUIREMENT.

       (a) 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 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 111.
       (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.
       (c) Exemptions.--A local housing and management authority 
     shall provide for the exemption, from the applicability of 
     the requirements under subsections (a) and (b)(1), of each 
     individual who is--
       (1) an elderly person and unable, as determined in 
     accordance with guidelines established by the Secretary, to 
     comply with the requirement;
       (2) a person with disabilities and unable (as so 
     determined) to comply with the requirement;
       (3) working, attending school or vocational training, or 
     otherwise complying with work requirements applicable under 
     other public assistance programs, and unable (as so 
     determined) to comply with the requirement; or
       (4) otherwise physically impaired, as certified by a 
     doctor, and is therefore unable to comply with the 
     requirement.

     SEC. 107. LOCAL HOUSING MANAGEMENT PLANS.

       (a) In General.--In accordance with this section, the 
     Secretary shall provide for each local housing and management 
     authority to submit to the Secretary a local housing 
     management plan under this section for each fiscal year that 
     describes the mission of the local housing and management 
     authority and the goals, objectives, and policies of the 
     authority to meet the housing needs of low-income families in 
     the jurisdiction of the authority.
       (b) Procedures.--The Secretary shall establish requirements 
     and procedures for submission and review of plans and for the 
     contents of such plans. Such procedures shall provide for 
     local housing and management authorities to, at the option of 
     the authority, submit plans under this section together with, 
     or as part of, 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 relevant jurisdiction 
     and for concomitant review of such plans.
       (c) Contents.--A local housing management plan under this 
     section for a local housing and management authority shall 
     contain the following information relating to the upcoming 
     fiscal year for which the assistance under this Act is to be 
     made available:
       (1) Financial resources.--An operating budget for the 
     authority that includes--
       (A) a description of the financial resources available to 
     the authority;
       (B) the uses to which such resources will be committed, 
     including eligible and required activities under section 203 
     to be assisted, housing assistance to be provided under title 
     III, and administrative, management, maintenance, and capital 
     improvement activities to be carried out; and
       (C) an estimate of the market rent value of each public 
     housing development of the authority.
       (2) Population served.--A statement of the policies of the 
     authority governing eligibility, admissions, and occupancy of 
     families with respect to public housing dwelling units and 
     housing assistance under title III, including--
       (A) the requirements for eligibility for such units and 
     assistance and the method by which eligibility will be 
     determined and verified;
       (B) the requirements for selection and admissions of 
     eligible families for such units and assistance, including 
     any preferences established under section 223 or 321(e) and 
     the criteria for selection under section 222(b) and (c);
       (C) the procedures for assignment of families admitted to 
     dwelling units owned, operated, or assisted by the authority;
       (D) any standards and requirements for occupancy of public 
     housing dwelling units and units assisted under title III, 
     including conditions for continued occupancy, termination of 
     tenancy, eviction, and termination of housing assistance 
     under section 321(g);
       (E) the criteria under subsection (f) of section 321 for 
     providing and denying housing assistance under title III to 
     families moving into the jurisdiction of the authority;
       (F) the fair housing policy of the authority; and
       (G) the procedures for outreach efforts (including efforts 
     that are planned and that have been executed) to homeless 
     families and to entities providing assistance to homeless 
     families, in the jurisdiction of the authority.
       (3) Rent determination.--A statement of the policies of the 
     authority governing rents charged for public housing dwelling 
     units and rental contributions of assisted families under 
     title III, including--
       (A) the methods by which such rents are determined under 
     section 225 and such contributions are determined under 
     section 322;
       (B) an analysis of how such methods affect--
       (i) the ability of the authority to provide housing 
     assistance for 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 
     authority.
       (4) Quality standards for maintenance and management.--A 
     statement of the standards and policies of the authority 
     governing maintenance and management of housing owned and 
     operated by the authority, and management of the local 
     housing and management authority, including--
       (A) housing quality standards in effect pursuant to 
     sections 232 and 328 and any certifications required under 
     such sections;
       (B) routine and preventative maintenance policies for 
     public housing;
       (C) emergency and disaster plans for public housing;
       (D) rent collection and security policies for public 
     housing;
       (E) priorities and improvements for management of public 
     housing; and
       (F) priorities and improvements for management of the 
     authority, including improvement of electronic information 
     systems to facilitate managerial capacity and efficiency.

[[Page H4842]]

       (5) Grievance procedure.--A statement of the grievance 
     procedures of the authority under section 111.
       (6) Capital improvements.--With respect to public housing 
     developments owned or operated by the authority, a plan 
     describing--
       (A) the capital improvements necessary to ensure long-term 
     physical and social viability of the developments; and
       (B) the priorities of the authority for capital 
     improvements based on analysis of available financial 
     resources, consultation with residents, and health and safety 
     considerations.
       (7) Demolition and disposition.--With respect to public 
     housing developments owned or operated by the authority--
       (A) a description of any such housing to be demolished or 
     disposed of under subtitle E of title II;
       (B) a timetable for such demolition or disposition; and
       (C) any information required under section 261(h) with 
     respect to such demolition or disposition.
       (8) Designation of housing for elderly and disabled 
     families.--With respect to public housing developments owned 
     or operated by the authority, a description of any 
     developments (or portions thereof) that the authority has 
     designated or will designate for occupancy by elderly and 
     disabled families in accordance with section 227 and any 
     information required under section 227(d) for such designated 
     developments.
       (9) Conversion of public housing.--With respect to public 
     housing owned or operated by the authority, a description of 
     any building or buildings that the authority is required 
     under section 203(b) to convert to housing assistance under 
     title III, an analysis of such buildings showing that the 
     buildings meet the requirements under such section for such 
     conversion, and a statement of the amount of grant amounts 
     under title II to be used for rental assistance under title 
     III.
       (10) Homeownership activities.--A description of any 
     homeownership programs of the authority under subtitle D of 
     title II or section 329 for the authority and the 
     requirements and assistance available under such programs.
       (11) Coordination with welfare and other appropriate 
     agencies.--A description of how the authority will coordinate 
     with State welfare agencies and other appropriate Federal, 
     State, or local government agencies or nongovernment agencies 
     or entities to ensure that public housing residents and 
     assisted families will be provided with access to resources 
     to assist in obtaining employment and achieving self-
     sufficiency.
       (12) Safety and crime prevention.--A description of the 
     policies established by the authority that increase or 
     maintain the safety of public housing residents, facilitate 
     the authority undertaking crime prevention measures (such as 
     community policing, where appropriate), allow resident input 
     and involvement, and allow for creative methods to increase 
     public housing resident safety by coordinating crime 
     prevention efforts between the authority and Federal, State, 
     and local law enforcement officials. Furthermore, to assure 
     the safety of public housing residents, the requirements will 
     include use of trespass laws by the authority to keep evicted 
     tenants or criminals out of public housing property.
       (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).
       (d) 5-Year Plan.--Each local housing management plan under 
     this section for a local housing and management authority 
     shall contain, with respect to the 5-year period beginning 
     with the fiscal year for which the plan is submitted, the 
     following information:
       (1) Statement of mission.--A statement of the mission of 
     the authority for serving the needs of low-income families in 
     the jurisdiction of authority during such period.
       (2) Goals and objectives.--A statement of the goals and 
     objectives of the authority that will enable the authority to 
     serve the needs identified pursuant to paragraph (1) during 
     such period.
       (3) Capital improvement overview.--If the authority will 
     provide capital improvements for public housing developments 
     during such period, an overview of such improvements, the 
     rationale for such improvements, and an analysis of how such 
     improvements will enable the authority to meet its goals, 
     objectives, and mission.
       (e) Citizen Participation.--
       (1) In general.--Before submitting a plan under this 
     section or an amendment under section 108(f) to a plan, a 
     local housing and management authority shall make the plan or 
     amendment publicly available in a manner that affords 
     affected public housing residents and assisted families under 
     title III, citizens, public agencies, entities providing 
     assistance and services for homeless families, and other 
     interested parties an opportunity, for a period not shorter 
     than 60 days and ending at a time that reasonably provides 
     for compliance with the requirements of paragraph (2), to 
     examine its content and to submit comments to the authority.
       (2) Consideration of comments.--A local housing and 
     management authority shall consider any comments or views 
     provided pursuant to paragraph (1) in preparing a final plan 
     or amendment for submission to the Secretary. A summary of 
     such comments or views shall be attached to the plan, 
     amendment, or report submitted. The submitted 
     plan, amendment, or report shall be made publicly 
     available upon submission.
       (f) Local Review.--Before submitting a plan under this 
     section to the Secretary, the local housing and management 
     authority shall submit the plan 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 
     approval.
       (g) Plans for Small LHMA's and LHMA's Administering Only 
     Rental Assistance.--The Secretary shall establish 
     requirements for submission of plans under this section and 
     the information to be included in such plans applicable to 
     housing and management authorities that own or operate less 
     than 250 public housing dwelling units and shall establish 
     requirements for such submission and information applicable 
     to authorities that only administer housing assistance under 
     title III (and do not own or operate public housing). Such 
     requirements shall waive any requirements under this section 
     that the Secretary determines are burdensome or unnecessary 
     for such agencies.

     SEC. 108. REVIEW OF PLANS.

       (a) Review and Notice.--
       (1) Review.--The Secretary shall conduct a limited review 
     of each local housing management plan submitted to the 
     Secretary to ensure that the plan is complete and complies 
     with the requirements of section 107. 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 local housing 
     and management authority submitting a plan whether the plan 
     complies with such requirements not later than 75 days after 
     receiving the plan. If the Secretary does not notify the 
     local housing and management authority, as required under 
     this subsection and subsection (b), the plan shall be 
     considered, for purposes of this Act, to have been determined 
     to comply with the requirements under section 107 and the 
     authority shall be considered to have been notified of 
     compliance upon the expiration of such 75-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 107, 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 
     107.
       (c) Standards for Determination of Noncompliance.--The 
     Secretary may determine that a plan does not comply with the 
     requirements under section 107 only if--
       (1) the plan is incomplete in significant matters required 
     under such section;
       (2) there is evidence available to the Secretary that 
     challenges, in a substantial manner, any information provided 
     in the plan;
       (3) the Secretary determines that the plan does not comply 
     with Federal law or violates the purposes of this Act because 
     it fails to provide housing that will be viable on a long-
     term basis at a reasonable cost;
       (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.
       (d) Treatment of Existing Plans.--Notwithstanding any other 
     provision of this title, a local housing and management 
     authority shall be considered to have submitted a plan under 
     this section if the 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 Act) or under the comprehensive improvement 
     assistance program under such section 14, and the Secretary 
     has approved such plan, before January 1, 1994. The Secretary 
     shall provide specific procedures and requirements for such 
     authorities to amend such plans by submitting only such 
     additional information as is necessary to comply with the 
     requirements of section 107.
       (e) Actions to Change Plan.--A local housing and management 
     authority that has submitted a plan under section 107 may 
     change actions or policies described in the plan before 
     submission and review of the plan of the authority for the 
     next fiscal year only if--
       (1) in the case of costly or nonroutine changes, the 
     authority submits to the Secretary an amendment to the plan 
     under subsection (f) which is reviewed in accordance with 
     such subsection; or
       (2) in the case of inexpensive or routine changes, the 
     authority describes such changes in such local housing 
     management plan for the next fiscal year.
       (f) Amendments to Plan.--
       (1) In general.--During the annual or 5-year period covered 
     by the plan for a local housing and management authority, the 
     authority may submit to the Secretary any amendments to the 
     plan.
       (2) Review.--The Secretary shall conduct a limited review 
     of each proposed amendment submitted under this subsection to 
     determine whether the plan, as amended by the amendment, 
     complies with the requirements of section 107 and notify each 
     local housing and management authority submitting the 
     amendment whether the plan, as amended, complies with such 
     requirements not later than 30 days after receiving the 
     amendment. If the Secretary determines that a plan, as 
     amended, does not comply with the requirements under section 
     107, such notice shall indicate the reasons for the 
     noncompliance and any modifications necessary for the plan to 
     meet the requirements under section 107. If the Secretary 
     does not notify the local housing and management authority as 
     required under this paragraph, the plan, as amended, shall be 
     considered, for purposes of this section, to comply with the 
     requirements under section 107.

[[Page H4843]]

       (3) Standards for determination of noncompliance.--The 
     Secretary may determine that a plan, as amended by a proposed 
     amendment, does not comply with the requirements under 
     section 107 only if--
       (A) the plan, as amended, would be subject to a 
     determination of noncompliance in accordance with the 
     provisions of subsection (c); or
       (B) the Secretary determines that--
       (i) the proposed amendment is plainly inconsistent with the 
     activities specified in the plan; or
       (ii) there is evidence that challenges, in a substantial 
     manner, any information contained in the amendment; or
       (3) the Secretary determines that the plan, as amended, 
     violates the purposes of this Act because it fails to provide 
     housing that will be viable on a long-term basis at a 
     reasonable cost;
       (4) Amendments to extend time of performance.--
     Notwithstanding any other provision of this subsection, the 
     Secretary may not determine that any amendment to the plan of 
     a local housing and management authority that extends the 
     time for performance of activities assisted with amounts 
     provided under this title fails to comply with the 
     requirements under section 107 if the Secretary has not 
     provided the amount of assistance set forth in the plan or 
     has not provided the assistance in a timely manner.

     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.

     SEC. 110. PET OWNERSHIP.

       (a) In General.--Except as provided in subsections (b) and 
     (c), a resident of a public housing dwelling unit or an 
     assisted dwelling unit (as such term is defined in section 
     371) may own common household pets or have common household 
     pets present in the dwelling unit of such resident to the 
     extent allowed by the local housing and management authority 
     or the owner of the assisted dwelling unit, respectively.
       (b) Federally Assisted Rental Housing for the Elderly or 
     Disabled.--Pet ownership in housing assisted under this Act 
     that is federally assisted rental housing for the elderly or 
     handicapped (as such term is defined in section 227 of the 
     Housing and Urban-Rural Recovery Act of 1983) shall be 
     governed by the provisions of section 227 of such Act.
       (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 subsection (b).

     SEC. 111. ADMINISTRATIVE GRIEVANCE PROCEDURE.

       (a) Requirements.--Each local housing and management 
     authority receiving assistance under this Act shall establish 
     and implement an administrative grievance procedure under 
     which residents of public housing will--
       (1) be advised of the specific grounds of any proposed 
     adverse local housing and management authority action;
       (2) have an opportunity for a hearing before an impartial 
     party (including appropriate employees of the local housing 
     and management authority) upon timely request within a 
     reasonable period of time;
       (3) have an opportunity to examine any documents or records 
     or regulations related to the proposed action;
       (4) be entitled to be represented by another person of 
     their choice at any hearing;
       (5) be entitled to ask questions of witnesses and have 
     others make statements on their behalf; and
       (6) be entitled to receive a written decision by the local 
     housing and management authority on the proposed action.
       (b) Exclusion From Administrative Procedure of Grievances 
     Concerning Evictions From Public Housing.--A local housing 
     and management authority shall exclude from its procedure 
     established under subsection (a) any grievance concerning an 
     eviction from or termination of tenancy in public housing in 
     any State which requires that, prior to eviction, a resident 
     be provided a hearing in court which the Secretary determines 
     provides the basic elements of due process.
       (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.

     SEC. 112. HEADQUARTERS RESERVE FUND.

       (a) Annual Reservation of Amounts.--Notwithstanding any 
     other provision of law, the Secretary may retain not more 
     than 3 percent of the amounts appropriated to carry out title 
     II for any fiscal year for use in accordance with this 
     section.
       (b) Use of Amounts.--Any amounts that are retained under 
     subsection (a) or appropriated or otherwise made available 
     for use under this section shall be available for subsequent 
     allocation to specific areas and communities, and may only be 
     used for the Department of Housing and Urban Development 
     and--
       (1) unforeseen housing needs resulting from natural and 
     other disasters;
       (2) housing needs resulting from emergencies, as certified 
     by the Secretary, other than such disasters;
       (3) housing needs related to a settlement of litigation, 
     including settlement of fair housing litigation;
       (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.

     SEC. 113. LABOR STANDARDS.

       (a) In General.--Any contract for grants, sale, or lease 
     pursuant to this Act relating to public housing shall contain 
     the following provisions:
       (1) Operation.--A provision requiring that not less than 
     the wages prevailing in the locality, as determined or 
     adopted (subsequent to a determination under applicable State 
     or local law) by the Secretary, shall be paid to all 
     contractors and persons employed in the operation of the low-
     income housing development involved.
       (2) Production.--A provision that not less than the wages 
     prevailing in the locality, as predetermined by the Secretary 
     of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-
     276a-5), shall be paid to all laborers and mechanics employed 
     in the production of the development involved.

     The Secretary shall require certification as to compliance 
     with the provisions of this section before making any payment 
     under such contract.
       (b) Exceptions.--Subsection (a) and the provisions relating 
     to wages (pursuant to subsection (a)) in any contract for 
     grants, sale, or lease pursuant to this Act relating to 
     public housing, shall not apply to any of the following 
     individuals:
       (1) Volunteers.--Any individual who--
       (A) performs services for which the individual volunteered;
       (B)(i) does not receive compensation for such services; or
       (ii) is paid expenses, reasonable benefits, or a nominal 
     fee for such services; and
       (C) is not otherwise employed at any time in the 
     construction work.
       (2) Residents employed by lhma.--Any resident of a public 
     housing development who (A) is an employee of the local 
     housing and management authority for the development, (B) 
     performs services in connection with the operation of a low-
     income housing project owned or managed by such authority, 
     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.
       (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.

     SEC. 114. NONDISCRIMINATION.

       (a) In General.--No person in the United States shall on 
     the grounds of race, color, national origin, religion, or sex 
     be excluded from participation in, be denied the benefits of, 
     or be subjected to discrimination under any program or 
     activity funded in whole or in part with amounts made 
     available under this Act. Any prohibition against 
     discrimination on the basis of age under the Age 
     Discrimination Act of 1975 or with respect to an otherwise 
     qualified handicapped individual as provided in section 504 
     of

[[Page H4844]]

     the Rehabilitation Act of 1973 shall also apply to any such 
     program or activity.
       (b) Civil Rights Compliance.--Each local housing and 
     management authority that receives grant amounts under this 
     Act shall use such amounts and carry out its local housing 
     management plan approved under section 108 in conformity with 
     title VI of the Civil Rights Act of 1964, the Fair Housing 
     Act, section 504 of the Rehabilitation Act of 1973, the Age 
     Discrimination Act of 1975, and the Americans With 
     Disabilities Act of 1990, and shall affirmatively further 
     fair housing.

     SEC. 115. 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.

     SEC. 116. 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.

     SEC. 117. EFFECTIVE DATE AND REGULATIONS.

       (a) Effective Date.--The provisions of this Act and the 
     amendments made by this Act shall take effect and shall apply 
     on the date of the enactment of this Act, unless such 
     provisions or amendments specifically provide for 
     effectiveness or applicability on another date certain.
       (b) Regulations.--The Secretary may issue any regulations 
     necessary to carry out this Act.
       (c) Rule of Construction.--Any failure by the Secretary to 
     issue any regulations authorized under subsection (b) shall 
     not affect the effectiveness of any provision of this Act or 
     any amendment made by this Act.
                        TITLE II--PUBLIC HOUSING
                        Subtitle A--Block Grants

     SEC. 201. BLOCK GRANT CONTRACTS.

       (a) In General.--The Secretary shall enter into contracts 
     with local housing and management authorities under which--
       (1) the Secretary agrees to make a block grant under this 
     title, in the amount provided under section 202(c), for 
     assistance for low-income housing to the local housing and 
     management authority for each fiscal year covered by the 
     contract; and
       (2) the authority agrees--
       (A) to provide safe, clean, and healthy housing that is 
     affordable to low-income families and services for families 
     in such housing;
       (B) to operate, or provide for the operation, of such 
     housing in a financially sound manner;
       (C) to use the block grant amounts in accordance with this 
     title and the local housing management plan for the authority 
     that complies with the requirements of section 107;
       (D) to involve residents of housing assisted with block 
     grant amounts in functions and decisions relating to 
     management and the quality of life in such housing;
       (E) that the management of the public housing of the 
     authority shall be subject to actions authorized under 
     subtitle B of title IV;
       (F) that the Secretary may take actions under section 205 
     with respect to improper use of grant amounts provided under 
     the contract; and
       (G) to otherwise comply with the requirements under this 
     title.
       (b) Modification.--Contracts and agreements between the 
     Secretary and a local housing and management authority may 
     not be amended in a manner which would--
       (1) impair the rights of--
       (A) leaseholders for units assisted pursuant to a contract 
     or agreement; or
       (B) the holders of any outstanding obligations of the local 
     housing and management authority involved for which annual 
     contributions have been pledged; or
       (2) provide for payment of block grant amounts under this 
     title in an amount exceeding the allocation for the authority 
     determined under section 204.

     Any rule of law contrary to this subsection shall be deemed 
     inapplicable.
       (c) Conditions on Renewal.--Each block grant contract under 
     this section shall provide, as a condition of renewal of the 
     contract with the local housing and management authority, 
     that the authority's accreditation be renewed by the Housing 
     Foundation and Accreditation Board pursuant to review under 
     section 433 by such Board.

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

       (a) Authority.--The Secretary shall make block grants under 
     this title to eligible local housing and management 
     authorities in accordance with block grant contracts under 
     section 201.
       (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.
       (d) Eligibility.--A local housing and management authority 
     shall be an eligible local housing and management authority 
     with respect to a fiscal year for purposes of this title only 
     if--
       (1) the Secretary has entered into a block grant contract 
     with the authority;
       (2) the authority has submitted a local housing management 
     plan to the Secretary for such fiscal year;
       (3) the plan has been determined to comply with the 
     requirements under section 107 and the Secretary has not 
     notified the authority that the plan fails to comply with 
     such requirements;
       (4) the authority is accredited under section 433 by the 
     Housing Foundation and Accreditation Board;
       (5) the authority is exempt from local taxes, as provided 
     under subsection (e), or receives a contribution, as provided 
     under such subsection;
       (6) no member of the board of directors or other governing 
     body of the authority, or the executive director, has been 
     convicted of a felony;
       (7) the authority has entered into an agreement providing 
     for local cooperation in accordance with subsection (f); and
       (8) the authority has not been disqualified for a grant 
     pursuant to section 205(a) or subtitle B of title IV.
       (e) Payments in Lieu of State and Local Taxation of Public 
     Housing Developments.--
       (1) Exemption from taxation.--A local housing and 
     management authority may receive a block grant under this 
     title only if--
       (A)(i) the developments of the authority (exclusive of any 
     portions not assisted with amounts provided under this title) 
     are exempt from all real and personal property taxes levied 
     or imposed by the State, city, county, or other political 
     subdivision; and
       (ii) the local housing and management authority makes 
     payments in lieu of taxes to such taxing authority equal to 
     10 percent of the sum, for units charged in the developments 
     of the authority, of the difference between the gross rent 
     and the utility cost, or such lesser amount as is--
       (I) prescribed by State law;
       (II) agreed to by the local governing body in its agreement 
     under subsection (e) for local cooperation with the local 
     housing and management authority or under a waiver by the 
     local governing body; or
       (III) due to failure of a local public body or bodies other 
     than the local housing and management authority to perform 
     any obligation under such agreement; or
       (B) the authority complies with the requirements under 
     subparagraph (A) with respect to public housing developments 
     (including public housing units in mixed-income 
     developments), but the authority agrees that the units other 
     than public housing units in any mixed-income developments 
     (as such term is defined in section 221(c)(2)) shall be 
     subject to any otherwise applicable real property taxes 
     imposed by the State, city, county or other political 
     subdivision.
       (2) Effect of failure to exempt from taxation.--
     Notwithstanding paragraph (1), a local housing and management 
     authority that does not comply with the requirements under 
     such paragraph may receive a block grant under this title, 
     but only if the State, city, county, or other political 
     subdivision in which the development is situated contributes, 
     in the form of cash or tax remission, the amount by which the 
     taxes paid with respect to the development exceed 10 percent 
     of the gross rent and utility cost charged in the 
     development.
       (f) Local Cooperation.--In recognition that there should be 
     local determination of the need for low-income housing to 
     meet needs not being adequately met by private enterprise, 
     the Secretary may not make any grant under this title to a 
     local housing and management authority unless the governing 
     body of the locality involved has entered into an agreement 
     with the authority providing for the local cooperation 
     required by the Secretary pursuant to this title.
       (g) Exception.--Notwithstanding subsection (a), the 
     Secretary may make a grant under this title for a local 
     housing and management authority that is not an eligible 
     local housing and management authority but only for the 
     period necessary to secure, in accordance with this title, an 
     alternative local housing and management authority for the 
     public housing of the ineligible authority.

     SEC. 203. ELIGIBLE AND REQUIRED ACTIVITIES.

       (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 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

[[Page H4845]]

       (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.
       (b) Required Conversion of Assistance for Public Housing to 
     Rental Housing Assistance.--
       (1) Requirement.--A local housing and management authority 
     that receives grant amounts under this title shall provide 
     assistance in the form of rental housing assistance under 
     title III, or appropriate site revitalization or other 
     appropriate capital improvements approved by the Secretary, 
     in lieu of assisting the operation and modernization of any 
     building or buildings of public housing, if the authority 
     provides 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).
       (2) Use of Other Amounts.--In addition to grant amounts 
     under this title attributable (pursuant to the formulas under 
     section 204) to the building or buildings identified under 
     paragraph (1), the Secretary may use amounts provided in 
     appropriation Acts for choice-based housing assistance under 
     title III for families residing in such building or buildings 
     or for appropriate site revitalization or other appropriate 
     capital improvements approved by the Secretary.
       (3) Enforcement.--The Secretary shall take appropriate 
     action to ensure conversion of any building or buildings 
     identified under paragraph (1) and any other appropriate 
     action under this subsection, if the local housing and 
     management authority fails to take appropriate action under 
     this subsection.
       (4) Failure of LHMA's to comply with conversion 
     requirement.--If the Secretary determines that--
       (A) a local housing and management authority has failed 
     under paragraph (1) to identify a building or buildings in a 
     timely manner,
       (B) a local housing and management authority has failed to 
     identify one or more buildings which the Secretary determines 
     should have been identified under paragraph (1), or
       (C) one or more of the buildings identified by the local 
     housing and management authority pursuant to paragraph (1) 
     should not, in the determination of the Secretary, have been 
     identified under that paragraph,

     the Secretary may identify a building or buildings for 
     conversion and take other appropriate action pursuant to this 
     subsection.
       (5) Cessation of unnecessary spending.--Notwithstanding any 
     other provision of law, if, in the determination of the 
     Secretary, a building or buildings meets or is likely to meet 
     the criteria set forth in paragraph (1), the Secretary may 
     direct the local housing and management authority to cease 
     additional spending in connection with such building or 
     buildings, except to the extent that additional spending is 
     necessary to ensure safe, clean, and healthy housing until 
     the Secretary determines or approves an appropriate course of 
     action with respect to such building or buildings under this 
     subsection.
       (6) Use of budget authority.--Notwithstanding any other 
     provision of law, if a building or buildings are identified 
     pursuant to paragraph (1), the Secretary may authorize or 
     direct the transfer, to the choice-based or tenant-based 
     assistance program of such authority or to appropriate site 
     revitalization or other capital improvements approved by the 
     Secretary, of--
       (A) in the case of an authority receiving assistance under 
     the comprehensive improvement assistance program, any amounts 
     obligated by the Secretary for the modernization of such 
     building or buildings pursuant to section 14 of the United 
     States Housing Act of 1937, as in effect immediately before 
     the date of enactment of this Act;
       (B) in the case of an authority receiving public housing 
     modernization assistance by formula pursuant to such section 
     14, any amounts provided to the authority which are 
     attributable pursuant to the formula for allocating such 
     assistance to such building or buildings;
       (C) in the case of an authority receiving assistance for 
     the major reconstruction of obsolete projects, any amounts 
     obligated by the Secretary for the major reconstruction of 
     such building or buildings pursuant to section 5(j)(2) of the 
     United States Housing Act of 1937, as in effect immediately 
     before the date of enactment of this Act; and
       (D) in the case of an authority receiving assistance 
     pursuant to the formulas under section 204, any amounts 
     provided to the authority which are attributable pursuant to 
     the formulas for allocating such assistance to such building 
     or buildings.
       (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.
       (d) Compliance With Plan.--The local housing management 
     plan submitted by a local housing and management authority 
     (including any amendments to the plan), unless determined 
     under section 108 not to comply with the requirements 
     under section 107, shall be binding upon the Secretary and 
     the local housing and management authority and the 
     authority shall use any grant amounts provided under this 
     title for eligible activities under subsection (a) in 
     accordance with the plan. This subsection may not be 
     construed to preclude changes or amendments to the plan, 
     as authorized under section 108(e) or any actions 
     authorized by this Act to be taken without regard to a 
     local housing management plan.

     SEC. 204. DETERMINATION OF GRANT ALLOCATION.

       (a) In General.--For each fiscal year, after reserving 
     amounts under section 112 from the aggregate amount made 
     available for the fiscal year for carrying out this title, 
     the Secretary shall allocate any remaining amounts among 
     eligible local housing and management authorities in 
     accordance with this section, so that the sum of all of the 
     allocations for all eligible authorities is equal to such 
     remaining amount.
       (b) Allocation Amount.--The Secretary shall determine the 
     amount of the allocation for each eligible local housing and 
     management authority, which shall be--
       (1) for any fiscal year beginning after the enactment of a 
     law containing the formulas described in paragraphs (1) and 
     (2) of subsection (c), the amount determined under such 
     formulas; or
       (2) for any fiscal year beginning before the expiration of 
     such period, the sum of--
       (A) the operating allocation determined under subsection 
     (d)(1) for the authority; and
       (B) the capital improvement allocation determined under 
     subsection (d)(2) for the authority.
       (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.
       (3) Development under negotiated rulemaking procedure.--The 
     formulas under this subsection shall be developed according 
     to procedures for issuance of regulations under the 
     negotiated rulemaking procedure under subchapter III of 
     chapter 5 of title 5, United States Code, except that the 
     formulas shall not be contained in a regulation.

[[Page H4846]]

       (4) Report.--Not later than the expiration of the 18-month 
     period beginning upon the enactment of this Act, the 
     Secretary shall submit a report to the Congress containing 
     the proposed formulas established pursuant to paragraph (3) 
     that meets the requirements of this subsection.
       (d) Interim Allocation Requirements.--
       (1) Operating allocation.--
       (A) Applicability to 50 percent of appropriated amounts.--
     Of any amounts available for allocation under this subsection 
     for a fiscal year, 50 percent shall be used only to provide 
     amounts for operating allocations under this paragraph for 
     eligible local housing and management authorities.
       (B) Determination.--The operating allocation under this 
     subsection for a local housing and management authority for a 
     fiscal year shall be an amount determined by applying, to the 
     amount to be allocated under this paragraph, the formula used 
     for determining the distribution of operating subsidies for 
     fiscal year 1995 to public housing agencies (as modified 
     under subparagraph (C)) under section 9 of the United States 
     Housing Act of 1937, as in effect before the enactment of 
     this Act.
       (C) Treatment of chronically vacant units.--The Secretary 
     shall revise the formula referred to in subparagraph (B) so 
     that the formula does not provide any amounts, other than 
     utility costs and other necessary costs (such as costs 
     necessary for the protection of persons and property), 
     attributable to any dwelling unit of a local housing and 
     management authority that has been vacant continuously for 6 
     or more months. A unit shall not be considered vacant for 
     purposes of this paragraph if the unit is unoccupied because 
     of rehabilitation or renovation that is on-schedule.
       (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.
       (2) Capital improvement allocation.--
       (A) Applicability to 50 percent of appropriated amounts.--
     Of any amounts available for allocation under this subsection 
     for a fiscal year, 50 percent shall be used only to provide 
     amounts for capital improvement allocations under this 
     paragraph for eligible local housing and management 
     authorities.
       (B) Determination.--The capital improvement allocation 
     under this subsection for an eligible local housing and 
     management authority for a fiscal year shall be determined by 
     applying, to the amount to be allocated under this paragraph, 
     the formula used for determining the distribution of 
     modernization assistance for fiscal year 1995 to public 
     housing agencies under section 14 of the United States 
     Housing Act of 1937, as in effect before the enactment of 
     this Act, except that Secretary shall establish a method for 
     taking into consideration allocation of amounts under the 
     comprehensive improvement assistance program.
       (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.

     SEC. 205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

       (a) In General.--In addition to any other actions 
     authorized under this title, if the Secretary finds pursuant 
     to an annual financial and performance audit under section 
     432 that a local housing and management authority receiving 
     grant amounts under this title has failed to comply 
     substantially with any provision of this title, the Secretary 
     may--
       (1) terminate payments under this title to the authority;
       (2) withhold from the authority amounts from the total 
     allocation for the authority pursuant to section 204;
       (3) reduce the amount of future grant payments under this 
     title to the authority by an amount equal to the amount of 
     such payments that were not expended in accordance with this 
     title;
       (4) limit the availability of grant amounts provided to the 
     authority under this title to programs, projects, or 
     activities not affected by such failure to comply;
       (5) withhold from the authority amounts allocated for the 
     authority under title III; or
       (6) order other corrective action with respect to the 
     authority.
       (b) Termination of Compliance Action.--If the Secretary 
     takes action under subsection (a) with respect to a local 
     housing and management authority, the Secretary shall--
       (1) in the case of action under subsection (a)(1), resume 
     payments of grant amounts under this title to the authority 
     in the full amount of the total allocation under section 204 
     for the authority at the time that the Secretary first 
     determines that the authority will comply with the provisions 
     of this title;
       (2) in the case of action under paragraph (2), (5), or (6) 
     of subsection (a), make withheld amounts available as the 
     Secretary considers appropriate to ensure that the authority 
     complies with the provisions of this title; or
       (3) in the case of action under subsection (a)(4), release 
     such restrictions at the time that the Secretary first 
     determines that the authority will comply with the provisions 
     of this title.
           Subtitle B--Admissions and Occupancy Requirements

     SEC. 221. LOW-INCOME HOUSING REQUIREMENT.

       (a) Production Assistance.--Any public housing produced 
     using amounts provided under a grant under this title or 
     under the United States Housing Act of 1937 shall be operated 
     as public housing for the 40-year period beginning upon such 
     production.
       (b) Operating Assistance.--No portion of any public housing 
     development operated with amounts from a grant under this 
     title or operating assistance provided under the United 
     States Housing Act of 1937 may be disposed of before the 
     expiration of the 10-year period beginning upon the 
     conclusion of the fiscal year for which the grant or such 
     assistance was provided, except as provided in this Act.
       (c) Capital Improvements Assistance.--Amounts may be used 
     for eligible activities under section 203(a)(2) only for the 
     following housing developments:
       (1) Low-income developments.--Amounts may be used for a 
     low-income housing development that--
       (A) is owned by local housing and management authorities;
       (B) is operated as low-income rental housing and produced 
     or operated with assistance provided under a grant under this 
     title; and
       (C) is consistent with the purposes of this title.

     Any development, or portion thereof, referred to in this 
     paragraph for which activities under section 203(a)(2) are 
     conducted using amounts from a grant under this title shall 
     be maintained and used as public housing for the 20-year 
     period beginning upon the receipt of such grant. Any public 
     housing development, or portion thereof, that received the 
     benefit of a grant pursuant to section 14 of the United 
     States Housing Act of 1937 shall be maintained and used as 
     public housing for the 20-year period beginning upon receipt 
     of such amounts.
       (2) Mixed income developments.--Amounts may be used for 
     mixed-income developments, which shall be a housing 
     development that--
       (A) contains dwelling units that are available for 
     occupancy by families other than low-income families;
       (B) contains a number of dwelling units--
       (i) which units are made available (by master contract or 
     individual lease) for occupancy only by low- and very low-
     income families identified by the local housing and 
     management authority;
       (ii) which number is not less than a reasonable number of 
     units, including related amenities, taking into account the 
     amount of the assistance provided by the authority compared 
     to the total investment (including costs of operation) in the 
     development;
       (iii) which units are subject to the statutory and 
     regulatory requirements of the public housing program, except 
     that the Secretary may grant appropriate waivers to such 
     statutory and regulatory requirements if reductions in 
     funding or other changes to the program make continued 
     application of such requirements impracticable;
       (iv) which units are specially designated as dwelling units 
     under this subparagraph, except the equivalent units in the 
     development may be substituted for designated units during 
     the period the units are subject to the requirements of the 
     public housing program; and
       (v) which units shall be eligible for assistance under this 
     title; and
       (C) is owned by the local housing and management authority, 
     an affiliate controlled by it, or another appropriate entity.

     Notwithstanding any other provision of this title, to 
     facilitate the establishment of socioeconomically mixed 
     communities, a local housing and management authority that 
     uses grant amounts under this title for a mixed income 
     development under this paragraph may, to the extent that 
     income from such a development reduces the amount of grant 
     amounts used for operating or other costs relating to public 
     housing, use such resulting savings to rent privately 
     developed dwelling units in the neighborhood of the mixed 
     income development. Such units shall be made available for 
     occupancy only by low-income families eligible for residency 
     in public housing.

     SEC. 222. FAMILY ELIGIBILITY.

       (a) In General.--Dwelling units in public housing may be 
     rented only to families who are low-income families at the 
     time of their initial occupancy of such units.
       (b) Income Mix Within Developments.--A local housing and 
     management authority may establish and utilize income-mix 
     criteria for the selection of residents for dwelling units in 
     public housing developments that limit admission to a 
     development by selecting applicants having incomes 
     appropriate so that the mix of incomes of families occupying 
     the development is proportional to the income mix in the 
     eligible population of the jurisdiction of the authority, as 
     adjusted to take into consideration the severity of housing 
     need. Any criteria established under this subsection shall be 
     subject to the provisions of subsection (c).
       (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 not 
     less than 35 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

[[Page H4847]]

     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.
       (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.
       (d) Waiver of Eligibility Requirements for Occupancy by 
     Police Officers.--
       (1) Authority and waiver.--To provide occupancy in public 
     housing dwelling units to police officers and other law 
     enforcement or security personnel (who are not otherwise 
     eligible for residence in public housing) and to increase 
     security for other public housing residents in developments 
     where crime has been a problem, a local housing and 
     management authority may, with respect to such units and 
     subject to paragraph (2)--
       (A) waive--
       (i) the provisions of subsection (a) of this section and 
     section 225(a);
       (ii) the applicability of--

       (I) any preferences for occupancy established under section 
     223;
       (II) the minimum rental amount established pursuant to 
     section 225(b) and any maximum monthly rental amount 
     established pursuant to such section;
       (III) any criteria relating to project income mix 
     established under subsection (b);
       (IV) the income mix requirements under subsection (c); and

       (V) any other occupancy limitations or requirements; and

       (B) establish special rent requirements and other terms and 
     conditions of occupancy.
       (2) Conditions of waiver.--A local housing and management 
     authority may take the actions authorized in paragraph (1) 
     only if authority determines that such actions will increase 
     security in the public housing developments involved and will 
     not result in a significant reduction of units available for 
     residence by low-income families.
       (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.

     SEC. 223. PREFERENCES FOR OCCUPANCY.

       (a) Authority To Establish.--Any local housing and 
     management authority may establish a system for making 
     dwelling units in public housing available for occupancy that 
     provides preference for such occupancy to families having 
     certain characteristics.
       (b) Content.--Each system of preferences established 
     pursuant to this section shall be based upon local housing 
     needs and priorities, as determined by the local housing and 
     management authority using generally accepted data sources, 
     including any information obtained pursuant to an opportunity 
     for public comment as provided under section 107(e) or under 
     the requirements applicable to comprehensive housing 
     affordability strategy for the relevant jurisdiction.

     SEC. 224. ADMISSION PROCEDURES.

       (a) Admission Requirements.--A local housing and management 
     authority shall ensure that each family residing in a public 
     housing development owned or administered by the authority is 
     admitted in accordance with the procedures established under 
     this title by the authority and the income limits under 
     section 222.
       (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.
       (c) Notification of Application Decisions.--A local housing 
     and management authority shall establish procedures designed 
     to provide for notification to an applicant for admission to 
     public housing of the determination with respect to such 
     application, the basis for the determination, and, if the 
     applicant is determined to be eligible for admission, the 
     projected date of occupancy (to the extent such date can 
     reasonably be determined). If an authority denies an 
     applicant admission to public housing, the authority shall 
     notify the applicant that the applicant may request an 
     informal hearing on the denial within a reasonable time of 
     such notification.
       (d) Confidentiality for Victims of Domestic Violence.--A 
     local housing and management authority shall be subject to 
     the restrictions regarding release of information relating to 
     the identity and new residence of any family in public 
     housing that was a victim of domestic violence that are 
     applicable to shelters pursuant to the Family Violence 
     Prevention and Services Act. The authority shall work with 
     the United States Postal Service to establish procedures 
     consistent with the confidentiality provisions in the 
     Violence Against Women Act of 1994.
       (e) Transfers.--A local housing and management authority 
     may apply, to each public housing resident seeking to 
     transfer from one development to another development owned or 
     operated by the authority, the screening procedures 
     applicable at such time to new applicants for public housing.

     SEC. 225. FAMILY RENTAL PAYMENT.

       (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).

     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. 
     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. 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) has an income that 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.
       (2) Maximum rental.--Each local housing and management 
     authority may establish, for each dwelling unit in public 
     housing owned or administered by the authority, a maximum 
     monthly rental amount, which shall be an amount determined by 
     the authority which is based on, but does not exceed--
       (A) the average, for dwelling units of similar size in 
     public housing developments owned and operated by such 
     authority, of operating expenses attributable to such units;
       (B) the reasonable rental value of the unit; or
       (C) the local market rent for comparable units of similar 
     size.
       (c) Income Reviews.--If a local housing and management 
     authority establishes the amount of rent paid by a family for 
     a public housing dwelling unit based on the adjusted income 
     of the family, the authority shall review the incomes of such 
     family occupying dwelling units in public housing owned or 
     administered by the authority not less than annually.
       (d) Review of Maximum and Minimum Rents.--
       (1) Rental charges.--If the Secretary determines, at any 
     time, that a significant percentage of the public housing 
     dwelling units owned or operated by a large local housing and 
     management authority are occupied by households paying more 
     than 30 percent of their adjusted incomes for rent, the 
     Secretary shall review the maximum and minimum monthly rental 
     amounts established by the authority.

[[Page H4848]]

       (2) Population served.--If the Secretary determines, at any 
     time, that less than 40 percent of the public housing 
     dwelling units owned or operated by a large local housing and 
     management authority are occupied by households whose incomes 
     do not exceed 30 percent of the area median income, the 
     Secretary shall review the maximum and minimum monthly rental 
     amounts established by the authority.
       (3) Modification of maximum and minimum rental amounts.--
     If, pursuant to review under this subsection, the Secretary 
     determines that the maximum and minimum rental amounts for a 
     large local housing and management authority are not 
     appropriate to serve the needs of the low-income population 
     of the jurisdiction served by the authority (taking into 
     consideration the financial resources and costs of the 
     authority), as identified in the approved local housing 
     management plan of the authority, the Secretary may require 
     the authority to modify the maximum and minimum monthly 
     rental amounts.
       (4) Large lhma.--For purposes of this subsection, the term 
     ``large local housing and management authority'' means a 
     local housing and management authority that owns or operates 
     1250 or more public housing dwelling units.
       (e) Phase-In of Rent Contribution Increases.--
       (1) In general.--Except as provided in paragraph (2), for 
     any family residing in a dwelling unit in public housing upon 
     the date of the enactment of this Act, if the monthly 
     contribution for rental of an assisted dwelling unit to be 
     paid by the family upon initial applicability of this title 
     is greater than the amount paid by the family under the 
     provisions of the United States Housing Act of 1937 
     immediately before such applicability, any such resulting 
     increase in rent contribution shall be--
       (A) phased in equally over a period of not less than 3 
     years, if such increase is 30 percent or more of such 
     contribution before initial applicability; and
       (B) limited to not more than 10 percent per year if such 
     increase is more than 10 percent but less than 30 percent of 
     such contribution before initial applicability.
       (2) Exception.--The minimum rent contribution requirement 
     under subsection (b)(1)(A) shall apply to each family 
     described in paragraph (1) of this subsection, 
     notwithstanding such paragraph.

     SEC. 226. LEASE REQUIREMENTS.

       In renting dwelling units in a public housing development, 
     each local housing and management authority shall utilize 
     leases that--
       (1) do not contain unreasonable terms and conditions;
       (2) obligate the local housing and management authority to 
     maintain the development in compliance with the housing 
     quality requirements under section 232;
       (3) require the local housing and management authority 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 local housing 
     and management authority employees is threatened; and
       (C) the period of time provided under the applicable law of 
     the jurisdiction, in any other case;
       (4) require that the local housing and management authority 
     may not terminate the tenancy except for violation of the 
     terms or conditions of the lease, violation of applicable 
     Federal, State, or local law, or for other good cause;
       (5) provide that the local housing and management authority 
     may terminate the tenancy of a public housing resident for 
     any activity, engaged in by a public housing 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 local housing and management authority or other 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) on or off such premises;
       (6) provide that any occupancy in violation of the 
     provisions of section 105 shall be cause for termination of 
     tenancy; and
       (7) specify that, with respect to any notice of eviction or 
     termination, notwithstanding any State law, a public housing 
     resident shall be informed of the opportunity, prior to any 
     hearing or trial, to examine any relevant documents, records 
     or regulations directly related to the eviction or 
     termination.

     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 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

[[Page H4849]]

     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.
                         Subtitle C--Management

     SEC. 231. MANAGEMENT PROCEDURES.

       (a) Sound Management.--A local housing and management 
     authority that receives grant amounts under this title shall 
     establish and comply with procedures and practices sufficient 
     to ensure that the public housing developments owned or 
     administered by the authority are operated in a sound manner.
       (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.
       (c) Management by Other Entities.--Except as otherwise 
     provided under this Act, a local housing and management 
     authority may contract with any other entity to perform any 
     of the management functions for public housing owned or 
     operated by the local housing and management authority.

     SEC. 232. HOUSING QUALITY REQUIREMENTS.

       (a) In General.--Each local housing and management 
     authority that receives grant amounts under this Act shall 
     maintain its public housing in a condition that complies--
       (1) in the case of public housing located in a jurisdiction 
     which has in effect laws, regulations, standards, or codes 
     regarding habitability of residential dwellings, with such 
     applicable laws, regulations, standards, or codes; or
       (2) in the case of public housing located in a jurisdiction 
     which does not have in effect laws, regulations, standards, 
     or codes described in paragraph (1), with the housing quality 
     standards established under subsection (b).
       (b) Federal Housing Quality Standards.--The Secretary shall 
     establish housing quality standards under this subsection 
     that ensure that public housing dwelling units are safe, 
     clean, and healthy. Such standards shall include requirements 
     relating to habitability, including maintenance, health and 
     sanitation factors, condition, and construction of dwellings, 
     and shall, to the greatest extent practicable, be consistent 
     with the standards established under section 328(b). The 
     Secretary shall differentiate between major and minor 
     violations of such standards.
       (c) Determinations.--Each local housing and management 
     authority providing housing assistance shall identify, in the 
     local housing management plan of the authority, whether the 
     authority is utilizing the standard under paragraph (1) or 
     (2) of subsection (a).
       (d) Annual Inspections.--Each local housing and management 
     authority that owns or operates public housing shall make an 
     annual inspection of each public housing development to 
     determine whether units in the development are maintained in 
     accordance with the requirements under subsection (a). The 
     authority shall submit the results of such inspections to the 
     Secretary and the Inspector General for the Department of 
     Housing and Urban Development and such results shall be 
     available to the Housing Foundation and Accreditation Board 
     established under title IV and any auditor conducting an 
     audit under section 432.

     SEC. 233. EMPLOYMENT OF RESIDENTS.

       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''.

     SEC. 234. RESIDENT COUNCILS AND RESIDENT MANAGEMENT 
                   CORPORATIONS.

       (a) Resident Councils.--The residents of a public housing 
     development may establish a resident council for the 
     development for purposes of consideration of issues relating 
     to residents, representation of resident interests, and 
     coordination and consultation with a local housing and 
     management authority. A resident council shall be an 
     organization or association that--
       (1) is nonprofit in character;
       (2) is representative of the residents of the eligible 
     housing;
       (3) adopts written procedures providing for the election of 
     officers on a regular basis; and
       (4) has a democratically elected governing board, which is 
     elected by the residents of the eligible housing on a regular 
     basis.
       (b) Resident Management Corporations.--
       (1) Establishment.--The residents of a public housing 
     development may establish a resident management corporation 
     for the purpose of assuming the responsibility for the 
     management of the development under section 235 or purchasing 
     a development.
       (2) Requirements.--A resident management corporation shall 
     be a corporation that--
       (A) is nonprofit in character;
       (B) is organized under the laws of the State in which the 
     development is located;
       (C) has as its sole voting members the residents of the 
     development; and
       (D) is established by the resident council for the 
     development or, if there is not a resident council, by a 
     majority of the households of the development.

     SEC. 235. MANAGEMENT BY RESIDENT MANAGEMENT CORPORATION.

       (a) Authority.--A local housing and management authority 
     may enter into a contract under this section with a resident 
     management corporation to provide for the management of 
     public housing developments by the corporation.
       (b) Contract.--A contract under this section for management 
     of public housing developments by a resident management 
     corporation shall establish the respective management rights 
     and responsibilities of the corporation and the local housing 
     and management authority. The contract shall be consistent 
     with the requirements of this Act applicable to public 
     housing development and may include specific terms governing 
     management personnel and compensation, access to public 
     housing records, submission of and adherence to budgets, rent 
     collection procedures, resident income verification, resident 
     eligibility determinations, resident eviction, the 
     acquisition of supplies and materials and such other matters 
     as may be appropriate. The contract shall be treated as a 
     contracting out of services.
       (c) Bonding and Insurance.--Before assuming any management 
     responsibility for a public housing development, the resident 
     management corporation shall provide fidelity bonding and 
     insurance, or equivalent protection. Such bonding and 
     insurance, or its equivalent, shall be adequate to protect 
     the Secretary and the local housing and management authority 
     against loss, theft, embezzlement, or fraudulent acts on the 
     part of the resident management corporation or its employees.
       (d) Block Grant Assistance and Income.--A contract under 
     this section shall provide for--
       (1) the local housing and management authority to provide a 
     portion of the block grant assistance under this title to the 
     resident management corporation for purposes of operating the 
     public housing development covered by the contract and 
     performing such other eligible activities with respect to the 
     development as may be provided under the contract;
       (2) the amount of income expected to be derived from the 
     development itself (from sources such as rents and charges);
       (3) the amount of income to be provided to the development 
     from the other sources of income of the local housing and 
     management authority (such as interest income, administrative 
     fees, and rents); and
       (4) any income generated by a resident management 
     corporation of a public housing development that exceeds the 
     income estimated under the contract shall be used for 
     eligible activities under section 203(a).
       (e) Calculation of Total Income.--
       (1) Maintenance of support.--Subject to paragraph (2), the 
     amount of assistance provided by a local housing and 
     management authority to a public housing development managed 
     by a resident management corporation may not be reduced 
     during the 3-year period beginning on the date on which the 
     resident management corporation is first established for the 
     development.
       (2) Reductions and increases in support.--If the total 
     income of a local housing and management authority is reduced 
     or increased, the income provided by the local housing and 
     management authority to a public housing development managed 
     by a resident management corporation shall be reduced or 
     increased in proportion to the reduction or increase in the 
     total income of the authority, except that any reduction in 
     block grant amounts under this title to the authority that 
     occurs as a result of fraud, waste, or mismanagement by the 
     authority shall not affect the amount provided to the 
     resident management corporation.

     SEC. 236. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO 
                   INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.

       (a) Authority.--The Secretary may transfer the 
     responsibility and authority for management of specified 
     housing (as such term is defined in subsection (h)) from a 
     local housing and management authority to an eligible 
     management entity, in accordance with the requirements of 
     this section, if--

[[Page H4850]]

       (1) such housing is owned or operated by a local housing 
     and management authority that is--
       (A) not accredited under section 433 by the Housing 
     Foundation and Accreditation Board; or
       (B) designated as a troubled authority under section 
     431(a)(2); and
       (2) the Secretary determines that--
       (A) such housing has deferred maintenance, physical 
     deterioration, or obsolescence of major systems and other 
     deficiencies in the physical plant of the project;
       (B) such housing is occupied predominantly by families with 
     children who are in a severe state of distress, characterized 
     by such factors as high rates of unemployment, teenage 
     pregnancy, single-parent households, long-term dependency on 
     public assistance and minimal educational achievement;
       (C) such housing is located in an area such that the 
     housing is subject to recurrent vandalism and criminal 
     activity (including drug-related criminal activity); and
       (D) the residents can demonstrate that the elements of 
     distress for such housing specified in subparagraphs (A) 
     through (C) can be remedied by an entity that has a 
     demonstrated capacity to manage, with reasonable expenses for 
     modernization.

     Such a transfer may be made only as provided in this section, 
     pursuant to the approval by the Secretary of a request for 
     the transfer made by a majority vote of the residents for the 
     specified housing, after consultation with the local housing 
     and management authority for the specified housing.
       (b) Block Grant Assistance.--Pursuant to a contract under 
     subsection (c), the Secretary shall require the local housing 
     and management authority for specified housing to provide to 
     the manager for the housing, from any block grant amounts 
     under this title for the authority, fair and reasonable 
     amounts for operating costs for the housing. The amount made 
     available under this subsection to a manager shall be 
     determined by the Secretary based on the share for the 
     specified housing of the total block grant amounts for the 
     local housing and management authority transferring the 
     housing, taking into consideration the operating and capital 
     improvement needs of the specified housing, the operating and 
     capital improvement needs of the remaining public housing 
     units managed by the local housing and management authority, 
     and the local housing management plan of such authority.
       (c) Contract Between Secretary and Manager.--
       (1) Requirements.--Pursuant to the approval of a request 
     under this section for transfer of the management of 
     specified housing, the Secretary shall enter into a contract 
     with the eligible management entity.
       (2) Terms.-- A contract under this subsection shall contain 
     provisions establishing the rights and responsibilities of 
     the manager with respect to the specified housing and the 
     Secretary and shall be consistent with the requirements of 
     this Act applicable to public housing developments.
       (d) Compliance With Local Housing Management Plan.--A 
     manager of specified housing under this section shall comply 
     with the approved local housing management plan applicable to 
     the housing and shall submit such information to the local 
     housing and management authority from which management was 
     transferred as may be necessary for such authority to prepare 
     and update its local housing management plan.
       (e) Demolition and Disposition by Manager.--A manager under 
     this section may demolish or dispose of specified housing 
     only if, and in the manner, provided for in the local housing 
     management plan for the authority transferring management of 
     the housing.
       (f) Limitation on LHMA Liability.--A local housing and 
     management authority that is not a manager for specified 
     housing shall not be liable for any act or failure to act by 
     a manager or resident council for the specified housing.
       (g) Treatment of Manager.--To the extent not inconsistent 
     with this section and to the extent the Secretary determines 
     not inconsistent with the purposes of this Act, a manager of 
     specified housing under this section shall be considered to 
     be a local housing and management authority for purposes of 
     this title.
       (h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Eligible management entity.--The term ``eligible 
     management entity'' means, with respect to any public housing 
     development, any of the following entities that has been 
     accredited in accordance with section 433:
       (A) Nonprofit organization.--A public or private nonprofit 
     organization, which shall--
       (i) include a resident management corporation or resident 
     management organization and, as determined by the Secretary, 
     a public or private nonprofit organization sponsored by the 
     local housing and management authority that owns the 
     development; and
       (ii) not include the local housing and management authority 
     that owns the development.
       (B) For-profit entity.--A for-profit entity that has 
     demonstrated experience in providing low-income housing.
       (C) State or local government.--A State or local 
     government, including an agency or instrumentality thereof.
       (D) Local housing and management authority.--A local 
     housing and management authority (other than the local 
     housing and management authority that owns the development).
     The term does not include a resident council.
       (2) Manager.--The term ``manager'' means any eligible 
     management entity that has entered into a contract under this 
     section with the Secretary for the management of specified 
     housing.
       (3) Nonprofit.--The term ``nonprofit'' means, with respect 
     to an organization, association, corporation, or other 
     entity, that no part of the net earnings of the entity inures 
     to the benefit of any member, founder, contributor, or 
     individual.
       (4) Private nonprofit organization.--The term ``private 
     nonprofit organization'' means any private organization 
     (including a State or locally chartered organization) that--
       (A) is incorporated under State or local law;
       (B) is nonprofit in character;
       (C) complies with standards of financial accountability 
     acceptable to the Secretary; and
       (D) has among its purposes significant activities related 
     to the provision of decent housing that is affordable to low-
     income families.
       (5) Local housing and management authority.--The term 
     ``local housing and management authority'' has the meaning 
     given such term in section 103(a).
       (6) Public nonprofit organization.--The term ``public 
     nonprofit organization'' means any public entity that is 
     nonprofit in character.
       (7) Specified housing.--The term ``specified housing'' 
     means a public housing development or developments, or a 
     portion of a development or developments, for which the 
     transfer of management is requested under this section. 
     The term includes one or more contiguous buildings and an 
     area of contiguous row houses, but in the case of a single 
     building, the building shall be sufficiently separable 
     from the remainder of the development of which it is part 
     to make transfer of the management of the building 
     feasible for purposes of this section.

     SEC. 237. RESIDENT OPPORTUNITY PROGRAM.

       (a) Purpose.--The purpose of this section is to encourage 
     increased resident management of public housing developments, 
     as a means of improving existing living conditions in public 
     housing developments, by providing increased flexibility for 
     public housing developments that are managed by residents 
     by--
       (1) permitting the retention, and use for certain purposes, 
     of any revenues exceeding operating and project costs; and
       (2) providing funding, from amounts otherwise available, 
     for technical assistance to promote formation and development 
     of resident management entities.

     For purposes of this section, the term ``public housing 
     development'' includes one or more contiguous buildings or an 
     area of contiguous row houses the elected resident councils 
     of which approve the establishment of a resident management 
     corporation and otherwise meet the requirements of this 
     section.
       (b) Program Requirements.--
       (1) Resident council.--As a condition of entering into a 
     resident opportunity program, the elected resident council of 
     a public housing development shall approve the establishment 
     of a resident management corporation that complies with the 
     requirements of section 234(b)(2). When such approval is made 
     by the elected resident council of a building or row house 
     area, the resident opportunity program shall not interfere 
     with the rights of other families residing in the development 
     or harm the efficient operation of the development. The 
     resident management corporation and the resident council may 
     be the same organization, if the organization complies with 
     the requirements applicable to both the corporation and 
     council.
       (2) Public housing management specialist.--The resident 
     council of a public housing development, in cooperation with 
     the local housing and management authority, shall select a 
     qualified public housing management specialist to assist in 
     determining the feasibility of, and to help establish, a 
     resident management corporation and to provide training and 
     other duties agreed to in the daily operations of the 
     development.
       (3) Management responsibilities.--A resident management 
     corporation that qualifies under this section, and that 
     supplies insurance and bonding or equivalent protection 
     sufficient to the Secretary and the local housing and 
     management authority, shall enter into a contract with the 
     authority establishing the respective management rights and 
     responsibilities of the corporation and the authority. The 
     contract shall be treated as a contracting out of services 
     and shall be subject to the requirements under section 234 
     for such contracts.
       (4) Annual audit.--The books and records of a resident 
     management corporation operating a public housing development 
     shall be audited annually by a certified public accountant. A 
     written report of each such audit shall be forwarded to the 
     local housing and management authority and the Secretary.
       (c) Comprehensive Improvement Assistance.--Public housing 
     developments managed by resident management corporations may 
     be provided with modernization assistance from grant amounts 
     under this title for purposes of renovating such 
     developments. If such renovation activities (including the 
     planning and architectural design of the rehabilitation) are 
     administered by a resident management corporation, the local 
     housing and management authority involved may not retain, for 
     any administrative or other reason, any portion of the 
     assistance provided pursuant to this subsection unless 
     otherwise provided by contract.
       (d) Waiver of Federal Requirements.--
       (1) Waiver of regulatory requirements.--Upon the request of 
     any resident management corporation and local housing and 
     management authority, and after notice and an opportunity to 
     comment is afforded to the affected residents, the Secretary 
     may waive (for both the resident management corporation and 
     the local housing and management authority) any requirement 
     established by the Secretary (and not specified in any 
     statute) that the Secretary determines to unnecessarily 
     increase the costs or restrict the income of a public housing 
     development.

[[Page H4851]]

       (2) Waiver to permit employment.--Upon the request of any 
     resident management corporation, the Secretary may, subject 
     to applicable collective bargaining agreements, permit 
     residents of such development to volunteer a portion of their 
     labor.
       (3) Exceptions.--The Secretary may not waive under this 
     subsection any requirement with respect to income eligibility 
     for purposes of section 222, rental payments under section 
     225, tenant or applicant protections, employee organizing 
     rights, or rights of employees under collective bargaining 
     agreements.
       (e) Operating Assistance and Development Income.--
       (1) Calculation of operating subsidy.--Subject only to the 
     exception provided in paragraph (3), the grant amounts 
     received under this title by a local housing and management 
     authority used for operating costs under section 203(a)(2) 
     that are allocated to a public housing development managed by 
     a resident management corporation shall not be less than per 
     unit monthly amount of such assistance used by the local 
     housing and management authority in the previous year, as 
     determined on an individual development basis.
       (2) Contract requirements.--Any contract for management of 
     a public housing development entered into by a local housing 
     and management authority and a resident management 
     corporation shall specify the amount of income expected to be 
     derived from the development itself (from sources such as 
     rents and charges) and the amount of income funds to be 
     provided to the development from the other sources of income 
     of the authority (such as operating assistance under section 
     203(a), interest income, administrative fees, and rents).
       (f) Resident Management Technical Assistance and 
     Training.--
       (1) Financial assistance.--To the extent budget authority 
     is available under this title, the Secretary shall provide 
     financial assistance to resident management corporations or 
     resident councils that obtain, by contract or otherwise, 
     technical assistance for the development of resident 
     management entities, including the formation of such 
     entities, the development of the management capability of 
     newly formed or existing entities, the identification of the 
     social support needs of residents of public housing 
     developments, and the securing of such support. 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.
       (2) Limitation on assistance.--The financial assistance 
     provided under this subsection with respect to any public 
     housing development may not exceed $100,000.
       (3) Prohibition.--A resident management corporation or 
     resident council may not, before the award to the corporation 
     or council of a grant amount under this subsection, enter 
     into any contract or other agreement with any entity to 
     provide such entity with amounts from the grant for providing 
     technical assistance or carrying out other activities 
     eligible for assistance with amounts under this subsection. 
     Any such agreement entered into in violation of this 
     paragraph shall be void and unenforceable.
       (4) Funding.--Of any amounts made available for financial 
     assistance under this title, the Secretary may use to carry 
     out this subsection $15,000,000 for fiscal year 1996.
       (5) Limitation regarding assistance under hope grant 
     program.--The Secretary may not provide financial assistance 
     under this subsection to any resident management corporation 
     or resident council with respect to which assistance for the 
     development or formation of such entity is provided under 
     title III of the United States Housing Act of 1937 (as in 
     effect before the date of the enactment of this Act).
       (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.
       (g) Assessment and Report by Secretary.--Not later than 3 
     years after the date of the enactment of the United States 
     Housing Act of 1996, the Secretary shall--
       (1) conduct an evaluation and assessment of resident 
     management, and particularly of the effect of resident 
     management on living conditions in public housing; and
       (2) submit to the Congress a report setting forth the 
     findings of the Secretary as a result of the evaluation and 
     assessment and including any recommendations the Secretary 
     determines to be appropriate.
       (h) Applicability.--Any management contract between a local 
     housing and management authority and a resident management 
     corporation that is entered into after the date of the 
     enactment of the Stewart B. McKinney Homeless Assistance 
     Amendments Act of 1988 shall be subject to this section and 
     any regulations issued to carry out this section.
                       Subtitle D--Homeownership

     SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.

       (a) In General.--A local housing and management authority 
     may carry out a homeownership program in accordance with this 
     section and the local housing management plan of the 
     authority to make public housing dwelling units, public 
     housing developments, and other housing projects available 
     for purchase by low-income families. An authority may 
     transfer a unit only pursuant to a homeownership program 
     approved 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.
       (b) Participating Units.--A program under this section may 
     cover any existing public housing dwelling units or projects, 
     and may include other dwelling units and housing owned, 
     operated, or assisted, or otherwise acquired for use under 
     such program, by the local housing and management authority.
       (c) Eligible Purchasers.--
       (1) Low-income requirement.--Only low-income families 
     assisted by a local housing and management authority, other 
     low-income families, and entities formed to facilitate such 
     sales by purchasing units for resale to low-income families 
     shall be eligible to purchase housing under a homeownership 
     program under this section.
       (2) Other requirements.--A local housing and management 
     authority may establish other requirements or limitations for 
     families to purchase housing under a homeownership program 
     under this section, including requirements or limitations 
     regarding employment or participation in employment 
     counseling or training activities, criminal activity, 
     participation in homeownership counseling programs, evidence 
     of regular income, and other requirements. 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.
       (d) Financing and Assistance.--A homeownership program 
     under this section may provide financing for acquisition of 
     housing by families purchasing under the program or by the 
     local housing and management authority for sale under this 
     program in any manner considered appropriate by the authority 
     (including sale to a resident management corporation).
       (e) Downpayment Requirement.--
       (1) In general.--Each family purchasing housing under a 
     homeownership program under this section shall be required to 
     provide from its own resources a downpayment in connection 
     with any loan for acquisition of the housing, in an amount 
     determined by the local housing and management authority. 
     Except as provided in paragraph (2), the authority shall 
     permit the family to use grant amounts, gifts from relatives, 
     contributions from private sources, and similar amounts as 
     downpayment amounts in such purchase,
       (2) Direct family contribution.--In purchasing housing 
     pursuant to this section, each family shall contribute an 
     amount of the downpayment, from resources of the family other 
     than grants, gifts, contributions, or other similar amounts 
     referred to in paragraph (1), that is not less than 1 percent 
     of the purchase price.
       (f) Ownership Interests.--A homeownership program under 
     this section may provide for sale to the purchasing family of 
     any ownership interest that the local housing and management 
     authority considers appropriate under the program, including 
     ownership in fee simple, a condominium interest, an interest 
     in a limited dividend cooperative, a shared appreciation 
     interest with a local housing and management authority 
     providing financing.
       (g) Resale.--
       (1) Authority and limitation.--A homeownership program 
     under this section shall permit the resale of a dwelling unit 
     purchased under the program by an eligible family, but shall 
     provide such limitations on resale as the authority considers 
     appropriate (whether the family purchases directly from the 
     authority or from another entity) for the authority to 
     recapture--
       (A) from any economic gain derived from any such resale 
     occurring during the 5-year period beginning upon purchase of 
     the dwelling unit by the eligible family, a portion of the 
     amount of any financial assistance provided under the program 
     by the authority to the eligible family; and
       (B) after the expiration of such 5-year period, only such 
     amounts as are equivalent to the assistance provided under 
     this section by the authority to the purchaser.
       (2) Considerations.--The limitations referred to in 
     paragraph (1) may provide for consideration of the aggregate 
     amount of assistance provided under the program to the 
     family, the contribution to equity provided by the purchasing 
     eligible family, the period of time elapsed between purchase 
     under the homeownership program and resale, the reason for 
     resale, any improvements to the property made by the eligible 
     family, any appreciation in the value of the property, and 
     any other factors that the authority considers appropriate.
       (h) Inapplicability of Disposition Requirements.--The 
     provisions of section 261 shall not apply to disposition of 
     public housing dwelling units under a homeownership program 
     under this section, except that any dwelling units sold under 
     such a program shall be treated as public housing dwelling 
     units for purposes of subsections (e) and (f) of section 261.

[[Page H4852]]

Subtitle E--Disposition, Demolition, and Revitalization of Developments

     SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSITION OF 
                   DEVELOPMENTS.

       (a) Authority and Flexibility.--A local housing and 
     management authority may demolish, dispose of, or demolish 
     and dispose of nonviable or nonmarketable public housing 
     developments of the authority in accordance with this 
     section.
       (b) Local Housing Management Plan Requirement.--A local 
     housing and management authority may take any action to 
     demolish or dispose of a public housing development (or a 
     portion of a development) only if such demolition or 
     disposition complies with the provisions of this section 
     and is in accordance with the local housing management 
     plan for the authority. 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.
       (c) Purpose of Demolition or Disposition.--A local housing 
     and management authority may demolish or dispose of a public 
     housing development (or portion of a development) only if the 
     authority provides sufficient evidence to the Secretary 
     that--
       (1) the development (or portion thereof) is severely 
     distressed or obsolete;
       (2) the development (or portion thereof) is in a location 
     making it unsuitable for housing purposes;
       (3) the development (or portion thereof) has design or 
     construction deficiencies that make cost-effective 
     rehabilitation infeasible;
       (4) assuming that reasonable rehabilitation and management 
     intervention for the development has been completed and paid 
     for, the anticipated revenue that would be derived from 
     charging market-based rents for units in the development (or 
     portion thereof) would not cover the anticipated operating 
     costs and replacement reserves of the development (or 
     portion) at full occupancy and the development (or portion) 
     would constitute a substantial burden on the resources of the 
     local housing and management authority;
       (5) retention of the development (or portion thereof) is 
     not in the best interests of the residents of the local 
     housing and management authority because--
       (A) developmental changes in the area surrounding the 
     development adversely affect the health or safety of the 
     residents or the feasible operation of the development by the 
     local housing and management authority;
       (B) demolition or disposition will allow the acquisition, 
     development, or rehabilitation of other properties which will 
     be more efficiently or effectively operated as low-income 
     housing; or
       (C) other factors exist that the authority determines are 
     consistent with the best interests of the residents and the 
     authority and not inconsistent with other provisions of this 
     Act;
       (6) in the case only of demolition or disposition of a 
     portion of a development, the demolition or disposition will 
     help to ensure the remaining useful life of the remainder of 
     the development; or
       (7) in the case only of property other than dwelling 
     units--
       (A) the property is excess to the needs of a development; 
     or
       (B) the demolition or disposition is incidental to, or does 
     not interfere with, continued operation of a development.
       (d) Consultation.--A local housing and management authority 
     may demolish or dispose of a public housing development (or 
     portion of a development) only if the authority notifies and 
     confers regarding the demolition or disposition with--
       (1) the residents of the development (or portion); and
       (2) appropriate local government officials.
       (e) Use of Proceeds.--Any net proceeds from the disposition 
     of a public housing development (or portion of a development) 
     shall be used for--
       (1) housing assistance for low-income families that is 
     consistent with the low-income housing needs of the 
     community, through acquisition, development, or 
     rehabilitation of, or homeownership programs for, other low-
     income housing or the provision of choice-based assistance 
     under title III for such families;
       (2) supportive services relating to job training or child 
     care for residents of a development or developments; or
       (3) leveraging amounts for securing commercial enterprises, 
     on-site in public housing developments of the local housing 
     and management authority, appropriate to serve the needs of 
     the residents.
       (f) Relocation.--A local housing and management authority 
     that demolishes or disposes of a public housing development 
     (or portion of a development thereof) shall ensure that--
       (1) each family that is a resident of the development (or 
     portion) that is demolished or disposed of is relocated to 
     other safe, clean, healthy, and affordable housing, which is, 
     to the maximum extent practicable, housing of the family's 
     choice or is provided with choice-based assistance under 
     title III;
       (2) the local housing and management authority does not 
     take any action to dispose of any unit until any resident to 
     be displaced is relocated in accordance with paragraph (1); 
     and
       (3) each resident family to be displaced is paid relocation 
     expenses, and the rent to be paid initially by the resident 
     following relocation does not exceed the amount permitted 
     under section 225(a).
       (g) Right of First Refusal for Resident Organizations and 
     Resident Management Corporations.--
       (1) In general.--A local housing and management authority 
     may not dispose of a public housing development (or portion 
     of a development) unless the authority has, before such 
     disposition, offered to sell the property, as provided in 
     this subsection, to each resident organization and resident 
     management corporation operating at the development for 
     continued use as low-income housing, and no such organization 
     or corporation purchases the property pursuant to such offer. 
     A resident organization may act, for purposes of this 
     subsection, through an entity formed to facilitate 
     homeownership under subtitle D.
       (2) Timing.--Disposition of a development (or portion 
     thereof) under this section may not take place--
       (A) before the expiration of the period during which any 
     such organization or corporation may notify the authority of 
     interest in purchasing the property, which shall be the 30-
     day period beginning on the date that the authority first 
     provides notice of the proposed disposition of the property 
     to such resident organizations and resident management 
     corporations;
       (B) if an organization or corporation submits notice of 
     interest in accordance with subparagraph (A), before the 
     expiration of the period during which such organization or 
     corporation may obtain a commitment for financing to purchase 
     the property, which shall be the 60-day period beginning upon 
     the submission to the authority of the notice of interest; or
       (C) if, during the period under subparagraph (B), an 
     organization or corporation obtains such financing commitment 
     and makes a bona fide offer to the authority to purchase the 
     property for a price equal to or exceeding the applicable 
     offer price under paragraph (3).

     The authority shall sell the property pursuant to any 
     purchase offer described in subparagraph (C).
       (3) Terms of offer.--An offer by a local housing and 
     management authority to sell a property in accordance with 
     this subsection shall involve a purchase price that reflects 
     the market value of the property, the reason for the sale, 
     the impact of the sale on the surrounding community, and any 
     other factors that the authority considers appropriate.
       (h) Information for Local Housing Management Plan.--A local 
     housing and management authority may demolish or dispose of a 
     public housing development (or portion thereof) only if it 
     includes in the applicable local housing management plan 
     information sufficient to describe--
       (1) the housing to be demolished or disposed of;
       (2) the purpose of the demolition or disposition under 
     subsection (c) and why the demolition or disposition complies 
     with the requirements under subsection (c);
       (3) how the consultations required under subsection (d) 
     will be made;
       (4) how the net proceeds of the disposition will be used in 
     accordance with subsection (e);
       (5) how the authority will relocate residents, if 
     necessary, as required under subsection (f); and
       (6) that the authority has offered the property for 
     acquisition by resident organizations and resident management 
     corporations in accordance with subsection (g).
       (i) Site and Neighborhood Standards Exemption.--
     Notwithstanding any other provision of law, a local housing 
     and management authority may provide for development of 
     public housing dwelling units on the same site or in the same 
     neighborhood as any dwelling units demolished, pursuant to a 
     plan under this section, but only if such development 
     provides for significantly fewer dwelling units.
       (j) Treatment of Replacement Units.--In connection with any 
     demolition or disposition of public housing under this 
     section, a local housing and management authority may provide 
     for other housing assistance for low-income families that is 
     consistent with the low-income housing needs of the 
     community, including--
       (1) the provision of choice-based assistance under title 
     III; and
       (2) the development, acquisition, or lease by the authority 
     of dwelling units, which dwelling units shall--
       (A) be eligible to receive assistance with grant amounts 
     provided under this title; and
       (B) be made available for occupancy, operated, and managed 
     in the manner required for public housing, and subject to the 
     other requirements applicable to public housing dwelling 
     units.
       (k) Permissible Relocation Without Plan.--If a local 
     housing and management authority determines that public 
     housing dwelling units are not clean, safe, and healthy or 
     cannot be maintained cost-effectively in a clean, safe, and 
     healthy condition, the local housing and management authority 
     may relocate residents of such dwelling units before the 
     submission of a local housing management plan providing for 
     demolition or disposition of such units.
       (l) Consolidation of Occupancy Within or Among Buildings.--
     Nothing in this section may be construed to prevent a local 
     housing and management authority from consolidating occupancy 
     within or among buildings of a public housing development, or 
     among developments, or with other housing for the purpose of 
     improving living conditions of, or providing more efficient 
     services to, residents.
       (m) De Minimis Exception to Demolition Requirements.--
     Notwithstanding any other provision of this section, in any 
     5-year period a local housing and management authority may 
     demolish not more than the lesser of 5 dwelling units or 5 
     percent of the total dwelling units owned and operated by the 
     local housing and management authority, without providing for 
     such demolition in a local housing management plan, but only 
     if the space occupied by the demolished unit is used for 
     meeting the service or other needs of public housing 
     residents or the demolished unit was beyond repair.

[[Page H4853]]

     SEC. 262. DEMOLITION, SITE REVITALIZATION, REPLACEMENT 
                   HOUSING, AND CHOICE-BASED ASSISTANCE GRANTS FOR 
                   DEVELOPMENTS.

       (a) Purposes.--The purpose of this section is to provide 
     assistance to local housing and management authorities for 
     the purposes of--
       (1) reducing the density and improving the living 
     environment for public housing residents of severely 
     distressed public housing developments through the demolition 
     of obsolete public housing developments (or portions 
     thereof);
       (2) revitalizing sites (including remaining public housing 
     dwelling units) on which such public housing developments are 
     located and contributing to the improvement of the 
     surrounding neighborhood; and
       (3) providing housing that will avoid or decrease the 
     concentration of very low-income families; and
       (4) providing choice-based assistance in accordance with 
     title III for the purpose of providing replacement housing 
     and assisting residents to be displaced by the demolition.
       (b) Grant Authority.--The Secretary may make grants 
     available to local housing and management authorities as 
     provided in this section.
       (c) Contribution Requirement.--The Secretary may not make 
     any grant under this section to any applicant unless the 
     applicant certifies to the Secretary that the applicant will 
     supplement the amount of assistance provided under this 
     section with an amount of funds from sources other than this 
     section equal to not less than 5 percent of the amount 
     provided under this section, including amounts from other 
     Federal sources, any State or local government sources, any 
     private contributions, and the value of any in-kind services 
     or administrative costs provided.
       (d) Eligible Activities.--Grants under this section may be 
     used for activities to carry out revitalization programs for 
     severely distressed public housing, including--
       (1) architectural and engineering work, including the 
     redesign, reconstruction, or redevelopment of a severely 
     distressed public housing development, including the site on 
     which the development is located;
       (2) the demolition, sale, or lease of the site, in whole or 
     in part;
       (3) covering the administrative costs of the applicant, 
     which may not exceed such portion of the assistance provided 
     under this section as the Secretary may prescribe;
       (4) payment of reasonable legal fees;
       (5) providing reasonable moving expenses for residents 
     displaced as a result of the revitalization of the 
     development;
       (6) economic development activities that promote the 
     economic self-sufficiency of residents under the 
     revitalization program;
       (7) necessary management improvements;
       (8) leveraging other resources, including additional 
     housing resources, retail supportive services, jobs, and 
     other economic development uses on or near the development 
     that will benefit future residents of the site;
       (9) replacement housing and housing assistance under title 
     III;
       (10) transitional security activities; and
       (11) necessary supportive services, except that not more 
     than 10 percent of the amount of any grant may be used for 
     activities under this paragraph.
       (e) Application and Selection.--
       (1) Application.--An application for a grant under this 
     section shall contain such information and shall be submitted 
     at such time and in accordance with such procedures, as the 
     Secretary shall prescribe.
       (2) Selection criteria.--The Secretary shall establish 
     selection criteria for the award of grants under this 
     section, which shall include--
       (A) the relationship of the grant to the local housing 
     management plan for the local housing and management 
     authority and how the grant will result in a revitalized site 
     that will enhance the neighborhood in which the development 
     is located;
       (B) the capability and record of the applicant local 
     housing and management authority, or any alternative 
     management agency for the authority, for managing large-scale 
     redevelopment or modernization projects, meeting construction 
     timetables, and obligating amounts in a timely manner;
       (C) the extent to which the local housing and management 
     authority could undertake such activities without a grant 
     under this section;
       (D) the extent of involvement of residents, State and local 
     governments, private service providers, financing entities, 
     and developers, in the development of a revitalization 
     program for the development; and
       (E) the amount of funds and other resources to be leveraged 
     by the grant.
     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).
       (f) Cost Limits.--Subject to the provisions of this 
     section, the Secretary--
       (1) shall establish cost limits on eligible activities 
     under this section sufficient to provide for effective 
     revitalization programs; and
       (2) may establish other cost limits on eligible activities 
     under this section.
       (h) Demolition and Replacement.--Any severely distressed 
     public housing demolished or disposed of pursuant to a 
     revitalization plan and any public housing produced in lieu 
     of such severely distressed housing, shall be subject to the 
     provisions of section 261.
       (i) Administration by Other Entities.--The Secretary may 
     require a grantee under this section to make arrangements 
     satisfactory to the Secretary for use of an entity other than 
     the local housing and management authority to carry out 
     activities assisted under the revitalization plan, if the 
     Secretary determines that such action will help to effectuate 
     the purposes of this section.
       (j) Withdrawal of Funding.--If a grantee under this section 
     does not proceed expeditiously, in the determination of the 
     Secretary, the Secretary shall withdraw any grant amounts 
     under this section that have not been obligated by the local 
     housing and management authority. The Secretary shall 
     redistribute any withdrawn amounts to one or more local 
     housing and management authorities eligible for assistance 
     under this section 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.
       (k) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Applicant.--The term ``applicant'' means--
       (A) any local housing and management authority that is not 
     designated as troubled or dysfunctional pursuant to section 
     431(a)(2);
       (B) any local housing and management authority or private 
     housing management agent selected, or receiver appointed 
     pursuant, to section 438; and
       (C) any local housing and management authority that is 
     designated as troubled pursuant to section 431(a)(2)(D) 
     that--
       (i) is so designated principally for reasons that will not 
     affect the capacity of the authority to carry out a 
     revitalization program;
       (ii) is making substantial progress toward eliminating the 
     deficiencies of the authority; or
       (iii) is otherwise determined by the Secretary to be 
     capable of carrying out a revitalization program.
       (2) Private nonprofit corporation.--The term ``private 
     nonprofit organization'' means any private nonprofit 
     organization (including a State or locally chartered 
     nonprofit organization) that--
       (A) is incorporated under State or local law;
       (B) has no part of its net earnings inuring to the benefit 
     of any member, founder, contributor, or individual;
       (C) complies with standards of financial accountability 
     acceptable to the Secretary; and
       (D) has among its purposes significant activities related 
     to the provision of decent housing that is affordable to very 
     low-income families.
       (3) Severely distressed public housing.--The term 
     ``severely distressed public housing'' means a public housing 
     development (or building in a development)--
       (A) that requires major redesign, reconstruction or 
     redevelopment, or partial or total demolition, to correct 
     serious deficiencies in the original design (including 
     inappropriately high population density), deferred 
     maintenance, physical deterioration or obsolescence of major 
     systems and other deficiencies in the physical plant of the 
     development;
       (B) is a significant contributing factor to the physical 
     decline of and disinvestment by public and private entities 
     in the surrounding neighborhood;
       (C)(i) is occupied predominantly by families who are very 
     low-income families with children, are unemployed, and 
     dependent on various forms of public assistance; and
       (ii) has high rates of vandalism and criminal activity 
     (including drug-related criminal activity) in comparison to 
     other housing in the area;
       (D) cannot be revitalized through assistance under other 
     programs, such as the public housing block grant program 
     under this title, or the programs under sections 9 and 14 of 
     the United States Housing Act of 1937 (as in effect before 
     the date of the enactment of this Act), because of cost 
     constraints and inadequacy of available amounts; and
       (E) in the case of individual buildings, the building is, 
     in the Secretary's determination, sufficiently separable from 
     the remainder of the development of which the building is 
     part to make use of the building feasible for purposes of 
     this section.
       (4) Supportive services.--The term ``supportive services'' 
     includes all activities that will promote upward mobility, 
     self-sufficiency, and improved quality of life for the 
     residents of the public housing development involved, 
     including literacy training, job training, day care, and 
     economic development activities.
       (l) Annual Report.--The Secretary shall submit to the 
     Congress an annual report setting forth--
       (1) the number, type, and cost of public housing units 
     revitalized pursuant to this section;
       (2) the status of developments identified as severely 
     distressed public housing;
       (3) the amount and type of financial assistance provided 
     under and in conjunction with this section; and
       (4) the recommendations of the Secretary for statutory and 
     regulatory improvements to the program established by this 
     section.
       (m) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated for grants under this section $480,000,000 
     for each of fiscal years 1996, 1997, and 1998.
       (2) Technical assistance.--Of the amount appropriated 
     pursuant to paragraph (1) for any fiscal year, the Secretary 
     may use not more than 0.50 percent for technical assistance. 
     Such assistance may be provided directly or indirectly by 
     grants, contracts, or cooperative agreements, and shall 
     include training, and the cost of necessary travel for 
     participants in such training, by or to officials of the 
     Department of Housing and Urban Development, of local housing 
     and management authorities, and of residents.
       (n) Sunset.--No assistance may be provided under this 
     section after September 30, 1998.

     SEC. 263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.

       (a) In General.--A local housing and management authority 
     may convert any public

[[Page H4854]]

     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).
                     Subtitle F--General Provisions

     SEC. 271. CONVERSION TO BLOCK GRANT ASSISTANCE.

       (a) Savings Provisions.--Any amounts made available to a 
     public housing agency for assistance for public housing 
     pursuant to the United States Housing Act of 1937 (or any 
     other provision of law relating to assistance for public 
     housing) under an appropriation for fiscal year 1996 or any 
     previous fiscal year shall be subject to the provisions of 
     such Act as in effect before the enactment of this Act, 
     notwithstanding the repeals made by this Act, except to the 
     extent the Secretary provides otherwise to provide for the 
     conversion of public housing and public housing assistance to 
     the system provided under this Act.
       (b) Modifications.--Notwithstanding any provision of this 
     Act or any annual contributions contract or other agreement 
     entered into by the Secretary and a public housing agency 
     pursuant to the provisions of the United States Housing Act 
     of 1937 (as in effect before the enactment of this Act), the 
     Secretary and the agency may by mutual consent amend, 
     supersede, modify any such agreement as appropriate to 
     provide for assistance under this title, except that the 
     Secretary and the agency may not consent to any such 
     amendment, supersession, or modification that substantially 
     alters any outstanding obligations requiring continued 
     maintenance of the low-income character of any public housing 
     development and any such amendment, supersession, or 
     modification shall not be given effect.

     SEC. 272. PAYMENT OF NON-FEDERAL SHARE.

       Rental or use-value of buildings or facilities paid for, in 
     whole or in part, from production, modernization, or 
     operation costs financed under this title may be used as the 
     non-Federal share required in connection with activities 
     undertaken under Federal grant-in-aid programs which provide 
     social, educational, employment, and other services to the 
     residents in a project assisted under this title.

     SEC. 273. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Acquisition cost.--The term ``acquisition cost'' means 
     the amount prudently expended by a local housing and 
     management authority in acquiring property for a public 
     housing development.
       (2) Development.--The terms ``public housing development'' 
     and ``development'' mean--
       (A) public housing; and
       (B) the improvement of any such housing.
       (3) Eligible local housing and management authority.--The 
     term ``eligible local housing and management authority'' 
     means, with respect to a fiscal year, a local housing and 
     management authority that is eligible under section 202(d) 
     for a grant under this title.
       (4) Group home and independent living facility.--The terms 
     ``group home'' and ``independent living facility'' have the 
     meanings given such terms in section 811(k) of the Cranston-
     Gonzalez National Affordable Housing Act.
       (5) Operation.--The term ``operation'' means any or all 
     undertakings appropriate for management, operation, services, 
     maintenance, security (including the cost of security 
     personnel), or financing in connection with a public housing 
     development, including the financing of resident programs and 
     services.
       (6) Production.--The term ``production'' means any or all 
     undertakings necessary for planning, land acquisition, 
     financing, demolition, construction, or equipment, in 
     connection with the construction, acquisition, or 
     rehabilitation of a property for use as a public housing 
     development, including activity in connection with a public 
     housing development that is confined to the reconstruction, 
     remodeling, or repair of existing buildings.
       (7) Production cost.--The term ``production cost'' means 
     the costs incurred by a local housing and management 
     authority for production of public housing and the necessary 
     financing for production (including the payment of carrying 
     charges and acquisition costs).
       (8) Resident council.--The term ``resident council'' means 
     an organization or association that meets the requirements of 
     section 234(a).
       (9) Resident management corporation.--The term ``resident 
     management corporation'' means a corporation that meets the 
     requirements of section 234(b).
       (10) Resident program.--The term ``resident programs and 
     services'' means programs and services for families residing 
     in public housing developments. Such term includes (A) the 
     development and maintenance of resident organizations which 
     participate in the management of public housing developments, 
     (B) the training of residents to manage and operate the 
     public housing development and the utilization of their 
     services in management and operation of the development, (C) 
     counseling on household management, housekeeping, budgeting, 
     money management, homeownership issues, child care, and 
     similar matters, (D) advice regarding resources for job 
     training and placement, education, welfare, health, and other 
     community services, (E) services that are directly related to 
     meeting resident needs and providing a wholesome living 
     environment; and (F) referral to appropriate agencies in the 
     community when necessary for the provision of such services. 
     To the maximum extent available and appropriate, existing 
     public and private agencies in the community shall be used 
     for the provision of such services.

     SEC. 274. AUTHORIZATION OF APPROPRIATIONS FOR BLOCK GRANTS.

       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.

     SEC. 275. AUTHORIZATION OF APPROPRIATIONS FOR OPERATION SAFE 
                   HOME.

       There is authorized to be appropriated, for assistance for 
     relocating residents of public housing under the operation 
     safe home program of the Department of Housing and Urban 
     Development (including assistance for costs of relocation and 
     housing assistance under title III), $700,000 for each of 
     fiscal years 1996, 1997, 1998, 1999, and 2000. The Secretary 
     shall provide that families who are residing in public 
     housing, who have been subject to domestic violence, and for 
     whom provision of assistance is likely to reduce or eliminate 
     the threat of subsequent violence to the members of the 
     family, shall be eligible for assistance under the operation 
     safe home program.
TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR 
                          LOW-INCOME FAMILIES
                         Subtitle A--Allocation

     SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE AMOUNTS.

       To the extent that amounts to carry out this title are made 
     available, the Secretary may enter into contracts with local 
     housing and management authorities for each fiscal year to 
     provide housing assistance under this title.

     SEC. 302. CONTRACTS WITH LHMA'S.

       (a) Condition of Assistance.--The Secretary may provide 
     amounts under this title to a local housing and management 
     authority for a fiscal year only if the Secretary has entered 
     into a contract under this section with the local housing and 
     management authority, under which the Secretary shall provide 
     such authority with amounts (in the amount of the allocation 
     for the authority determined pursuant to section 304) for 
     housing assistance under this title for low-income families.
       (b) Use for Housing Assistance.--A contract under this 
     section shall require a local housing and management 
     authority to use amounts provided under this title to provide 
     housing assistance in any manner authorized under this title.
       (c) Annual Obligation of Authority.--A contract under this 
     title shall provide amounts for housing assistance for 1 
     fiscal year covered by the contract.
       (d) Enforcement of Housing Quality Requirements.--Each 
     contract under this section

[[Page H4855]]

     shall require the local housing and management authority 
     administering assistance provided under the contract--
       (1) to ensure compliance, under each housing assistance 
     payments contract entered into pursuant to the contract under 
     this section, with the provisions of the housing assistance 
     payments contract included pursuant to section 351(c)(4); and
       (2) to establish procedures for assisted families to notify 
     the authority of any noncompliance with such provisions.

     SEC. 303. ELIGIBILITY OF LHMA'S FOR ASSISTANCE AMOUNTS.

       The Secretary may provide amounts available for housing 
     assistance under this title pursuant to the formula 
     established under section 304(a) to a local housing and 
     management authority only if--
       (1) the authority has submitted a local housing management 
     plan to the Secretary for such fiscal year and applied to the 
     Secretary for such assistance;
       (2) the plan has been determined to comply with the 
     requirements under section 107 and the Secretary has not 
     notified the authority that the plan fails to comply with 
     such requirements;
       (3) the authority is accredited under section 433 by the 
     Housing Foundation and Accreditation Board;
       (4) no member of the board of directors or other governing 
     body of the authority, or the executive director, has been 
     convicted of a felony; and
       (5) the authority has not been disqualified for assistance 
     pursuant to subtitle B of title IV.

     SEC. 304. ALLOCATION OF AMOUNTS.

       (a) Formula Allocation.--
       (1) In general.--When amounts for assistance under this 
     title are first made available for reservation, after 
     reserving amounts in accordance with subsections (b)(3) and 
     (c), and section 112, the Secretary shall allocate such 
     amounts, only among local housing and management authorities 
     meeting the requirements under this title to receive such 
     assistance, on the basis of a formula that is established in 
     accordance with paragraph (2) and based upon appropriate 
     criteria to reflect the needs of different States, areas, and 
     communities, using the most recent data available from the 
     Bureau of the Census of the Department of Commerce and 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. The Secretary may establish a 
     minimum allocation amount, in which case only the local 
     housing and management authorities that, pursuant to the 
     formula, are provided an amount equal to or greater than the 
     minimum allocation amount, shall receive an allocation.
       (2) Regulations.--The formula under this subsection shall 
     be established by regulation issued by the Secretary. 
     Notwithstanding sections 563(a) and 565(a) of title 5, United 
     States Code, any proposed regulation containing such formula 
     shall be issued pursuant to a negotiated rulemaking procedure 
     under subchapter of chapter 5 of such title and the Secretary 
     shall establish a negotiated rulemaking committee for 
     development of any such proposed regulations.
       (b) Allocation Considerations.--
       (1) Limitation on reallocation for another state.--Any 
     amounts allocated for a State or areas or communities within 
     a State that are not likely to be used within the fiscal year 
     for which the amounts are provided shall not be reallocated 
     for use in another State, unless the Secretary determines 
     that other areas or communities within the same State (that 
     are eligible for amounts under this title) cannot use the 
     amounts within the same fiscal year.
       (2) Effect of receipt of tenant-based assistance for 
     disabled families.--The Secretary may not consider the 
     receipt by a local housing and management authority of 
     assistance under section 811(b)(1) of the Cranston-Gonzalez 
     National Affordable Housing Act, or the amount received, in 
     approving amounts under this title for the authority or in 
     determining the amount of such assistance to be provided to 
     the authority.
       (3) Exemption from formula allocation.--The formula 
     allocation requirements of subsection (a) shall not apply to 
     any assistance under this title that is approved in 
     appropriation Acts for uses that the Secretary determines are 
     incapable of geographic allocation, including funding for the 
     headquarters reserve fund under section 112, amendments of 
     existing housing assistance payments contracts, renewal of 
     such contracts, assistance to families that would otherwise 
     lose assistance due to the decision of the project owner to 
     prepay the project mortgage or not to renew the housing 
     assistance payments contract, assistance to prevent 
     displacement from public or assisted housing or to provide 
     replacement housing in connection with the demolition or 
     disposition of public housing, assistance for relocation from 
     public housing, assistance in connection with protection of 
     crime witnesses, assistance for conversion from leased 
     housing contracts under section 23 of the United States 
     Housing Act of 1937 (as in effect before the enactment of the 
     Housing and Community Development Act of 1974), and 
     assistance in support of the property disposition and 
     portfolio management functions of the Secretary.
       (c) Recapture of Amounts.--
       (1) Authority.--In each fiscal year, from any budget 
     authority made available for assistance under this title or 
     section 8 of the United States Housing Act of 1937 (as in 
     effect before the enactment of this Act) that is obligated to 
     a local housing and management authority but remains 
     unobligated by the authority upon the expiration of the 8-
     month period beginning upon the initial availability of such 
     amounts for obligation by the authority, the Secretary may 
     deobligate an amount, as determined by the Secretary, not 
     exceeding 50 percent of such unobligated amount.
       (2) Use.--The Secretary may reallocate and transfer any 
     amounts deobligated under paragraph (1) only to local housing 
     and management authorities in areas that the Secretary 
     determines have received less funding than other areas, based 
     on the relative needs of all areas.

     SEC. 305. ADMINISTRATIVE FEES.

       (a) Fee for Ongoing Costs of Administration.--
       (1) In general.--The Secretary shall establish fees for the 
     costs of administering the choice-based housing assistance 
     program under this title.
       (2) Fiscal year 1996.--
       (A) Calculation.--For fiscal year 1996, the fee for each 
     month for which a dwelling unit is covered by a contract for 
     assistance under this title shall be--
       (i) in the case of a local housing and management authority 
     that, on an annual basis, is administering a program for not 
     more than 600 dwelling units, 7.65 percent of the base 
     amount; and
       (ii) in the case of an authority that, on an annual basis, 
     is administering a program for more than 600 dwelling units--

       (I) for the first 600 units, 7.65 percent of the base 
     amount; and
       (II) for any additional dwelling units under the program, 
     7.0 percent of the base amount.

       (B) Base amount.--For purposes of this paragraph, the base 
     amount shall be the higher of--
       (i) the fair market rental established under section 8(c) 
     of the United States Housing Act of 1937 (as in effect 
     immediately before the date of the enactment of this Act) for 
     fiscal year 1993 for a 2-bedroom existing rental dwelling 
     unit in the market area of the authority, and
       (ii) the amount that is the lesser of (I) such fair market 
     rental for fiscal year 1994 or (II) 103.5 percent of the 
     amount determined under clause (i),

     adjusted based on changes in wage data or other objectively 
     measurable data that reflect the costs of administering the 
     program, as determined by the Secretary. The Secretary may 
     require that the base amount be not less than a minimum 
     amount and not more than a maximum amount.
       (3) Subsequent fiscal years.--For subsequent fiscal years, 
     the Secretary shall publish a notice in the Federal Register, 
     for each geographic area, establishing the amount of the fee 
     that would apply for local housing and management authorities 
     administering the program, based on changes in wage data or 
     other objectively measurable data that reflect the costs of 
     administering the program, as determined by the Secretary.
       (4) Increase.--The Secretary may increase the fee if 
     necessary to reflect the higher costs of administering small 
     programs and programs operating over large geographic areas.
       (b) Fee for Preliminary Expenses.--The Secretary shall also 
     establish reasonable fees (as determined by the Secretary) 
     for--
       (1) the costs of preliminary expenses, in the amount of 
     $500, for a local housing and management authority, but only 
     in the first year that the authority administers a choice-
     based housing assistance program under this title, and only 
     if, immediately before the date of the enactment of this Act, 
     the authority was not administering a tenant-based rental 
     assistance program under the United States Housing Act of 
     1937 (as in effect immediately before such date of 
     enactment), in connection with its initial increment of 
     assistance received;
       (2) the costs incurred in assisting families who experience 
     difficulty (as determined by the Secretary) in obtaining 
     appropriate housing under the programs; and
       (3) extraordinary costs approved by the Secretary.
       (c) Transfer of Fees in Cases of Concurrent Geographical 
     Jurisdiction.--
       (1) In general.--In each fiscal year, if any local housing 
     and management authority provides tenant-based rental 
     assistance under section 8 of the United States Housing Act 
     of 1937 or housing assistance under this title on behalf of a 
     family who uses such assistance for a dwelling unit that is 
     located within the jurisdiction of such authority but is also 
     within the jurisdiction of another local housing and 
     management authority, 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).

     SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated for 
     providing local housing and management authorities with 
     housing assistance under this title, $1,861,668,000 for each 
     of fiscal years 1996, 1997, 1998, 1999, and 2000.
       (b) Assistance for Disabled Families.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated, for choice-based housing assistance under 
     this title to be used in accordance with paragraph (2), 
     $50,000,000 for fiscal year 1997, and such sums as may be 
     necessary for each subsequent fiscal year.
       (2) Use.--The Secretary shall provide amounts made 
     available under paragraph (1) to local housing and management 
     authorities only for use to 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).
       (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

[[Page H4856]]

     need among the authorities for assistance for families 
     described in paragraph (1).

     SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.

       (a) In General.--Any amounts made available to a local 
     housing and management authority under a contract for annual 
     contributions for assistance under section 8 of the United 
     States Housing Act of 1937 (as in effect before the enactment 
     of this Act) that have not been obligated for such assistance 
     by such authority before such enactment shall be used to 
     provide assistance under this title, except to the extent the 
     Secretary determines such use is inconsistent with existing 
     commitments.
       (b) Exception.--Subsection (a) shall not apply to any 
     amounts made available under a contract for housing 
     constructed or substantially rehabilitated pursuant to 
     section 8(b)(2) of the United States Housing Act of 1937, as 
     in effect before October 1, 1983.
   Subtitle B--Choice-Based Housing Assistance for Eligible Families

     SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR ASSISTANCE.

       (a) Low-Income Requirement.--Housing assistance under this 
     title may be provided only on behalf of a family that--
       (1) at the time that such assistance is initially provided 
     on behalf of the family, is determined by the local housing 
     and management authority to be a low-income family; or
       (2) qualifies to receive such assistance under any other 
     provision of Federal law.
       (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.
       (c) Income Targeting.--Of the families initially assisted 
     under this title by a local housing and management authority 
     in any year, not less than 40 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.
       (d) Reviews of Family Incomes.--
       (1) In general.--Reviews of family incomes for purposes of 
     this title shall be subject to the provisions of section 904 
     of the Stewart B. McKinney Homeless Assistance Amendments Act 
     of 1988 and shall be conducted upon the initial provision of 
     housing assistance for the family and thereafter not less 
     than annually.
       (2) Procedures.--Each local housing and management 
     authority administering housing assistance under this title 
     shall establish procedures that are appropriate and necessary 
     to ensure that income data provided to the authority and 
     owners by families applying for or receiving housing 
     assistance from the authority is complete and accurate.
       (e) Preferences for Assistance.--
       (1) Authority to establish.--Any local housing and 
     management authority that receives amounts under this title 
     may establish a system for making housing assistance 
     available on behalf of eligible families that provides 
     preference for such assistance to eligible families having 
     certain characteristics.
       (2) Content.--Each system of preferences established 
     pursuant to this subsection shall be based upon local housing 
     needs and priorities, as determined by the local housing and 
     management authority using generally accepted data sources, 
     including any information obtained pursuant to an opportunity 
     for public comment as provided under section 107(e) or under 
     the requirements applicable to comprehensive housing 
     affordability strategy for the relevant jurisdiction.
       (f) 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.
       (g) Loss of Assistance Upon Termination of Tenancy.--A 
     local housing and management authority shall, consistent with 
     the policies described in the local housing management plan 
     of the authority, establish policies providing that an 
     assisted family whose tenancy is terminated for serious 
     violations of the terms or conditions of the lease shall--
       (1) lose any right to continued housing assistance; and
       (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.
       (h) Confidentiality for Victims of Domestic Violence.--A 
     local housing and management authority shall be subject to 
     the restrictions regarding release of information relating to 
     the identity and new residence of any family receiving 
     housing assistance who was a victim of domestic violence that 
     are applicable to shelters pursuant to the Family Violence 
     Prevention and Services Act. The authority shall work with 
     the United States Postal Service to establish procedures 
     consistent with the confidentiality provisions in the 
     Violence Against Women Act of 1994.
       (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.

     SEC. 322. RESIDENT CONTRIBUTION.

       (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 (d).
       (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) has an income that 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) 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.
       (c) 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 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.
       (d) 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;

[[Page H4857]]

       (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.
       (e) Treatment of Changes in Rental Contribution.--
       (1) Notification of changes.--A local housing and 
     management authority shall promptly notify the owner of an 
     assisted dwelling unit of any change in the resident 
     contribution by the assisted family residing in the unit that 
     takes effect immediately or at a later date.
       (2) Collection of retroactive changes.--In the case of any 
     change in the rental contribution of an assisted family that 
     affects rental payments previously made, the local housing 
     and management authority shall collect any additional amounts 
     required to be paid by the family under such change directly 
     from the family and shall refund any excess rental 
     contribution paid by the family directly to the family.
       (f) Phase-In of Rent Contribution Increases.--
       (1) In general.--Except as provided in paragraph (2), for 
     any family that is receiving tenant-based rental assistance 
     under section 8 of the United States Housing Act of 1937 upon 
     the initial applicability of the provisions of this title to 
     such family, if the monthly contribution for rental of an 
     assisted dwelling unit to be paid by the family upon such 
     initial applicability is greater than the amount paid by the 
     family under the provisions of the United States Housing Act 
     of 1937 immediately before such applicability, any such 
     resulting increase in rent contribution shall be--
       (A) phased in equally over a period of not less than 3 
     years, if such increase is 30 percent or more of such 
     contribution before initial applicability; and
       (B) limited to not more than 10 percent per year if such 
     increase is more than 10 percent but less than 30 percent of 
     such contribution before initial applicability.
       (2) Exception.--The minimum rent contribution requirement 
     under subsection (d)(1)(B) shall apply to each family 
     described in paragraph (1) of this subsection, 
     notwithstanding such paragraph.

     SEC. 323. RENTAL INDICATORS.

       (a) In General.--The Secretary shall establish and issue 
     rental indicators under this section periodically, but not 
     less than annually, for existing rental dwelling units that 
     are eligible dwelling units. The Secretary shall establish 
     and issue the rental indicators by housing market area (as 
     the Secretary shall establish) for various sizes and types of 
     dwelling units.
       (b) Amount.--For a market area, the rental indicator 
     established under subsection (a) for a dwelling unit of a 
     particular size and type in the market area shall be a dollar 
     amount that reflects the rental amount for a standard quality 
     rental unit of such size and type in the market area that is 
     an eligible dwelling unit.
       (c) Effective Date.--The Secretary shall cause the proposed 
     rental indicators established under subsection (a) for each 
     market area to be published in the Federal Register with 
     reasonable time for public comment, and such rental 
     indicators shall become effective upon the date of 
     publication in final form in the Federal Register.
       (d) Annual Adjustment.--Each rental indicator in effect 
     under this section shall be adjusted to be effective on 
     October 1 of each year to reflect changes, based on the most 
     recent available data trended so that the indicators will be 
     current for the year to which they apply, in rents for 
     existing rental dwelling units of various sizes and types in 
     the market area suitable for occupancy by families assisted 
     under this title.

     SEC. 324. LEASE TERMS.

       Rental assistance may be provided for an eligible dwelling 
     unit only if the assisted family and the owner of the 
     dwelling unit enter into a lease for the unit that--
       (1) provides for a single lease term of 12 months and 
     continued tenancy after such term under a periodic tenancy on 
     a month-to-month basis;
       (2) contains terms and conditions specifying that 
     termination of tenancy during the term of a lease shall be 
     subject to the provisions set forth in section 325; and
       (3) is set forth in the standard form, which is used in the 
     local housing market area by the owner and applies generally 
     to any other tenants in the property who are not assisted 
     families, together with any addendum necessary to include the 
     many terms required under this section.

     A lease may include any addenda appropriate to set forth the 
     provisions under this title.

     SEC. 325. TERMINATION OF TENANCY.

       (a) General Grounds for Termination of Tenancy.--Each 
     housing assistance payments contract under section 351 shall 
     provide that the owner of any assisted dwelling unit assisted 
     under the contract may, before expiration of a lease for a 
     unit, terminate the tenancy of any tenant of the unit, but 
     only for--
       (1) violation of the terms and conditions of the lease, 
     violation of applicable Federal, State, or local law, or 
     other good cause; or
       (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 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 such premises.
       (b) Manner of Termination.--Each housing assistance 
     payments contract shall provide that the owner shall conduct 
     the termination of tenancy of any tenant of an assisted 
     dwelling unit under the contract in accordance with 
     applicable State or local laws, including providing any 
     notice of termination required under such laws.

     SEC. 326. ELIGIBLE OWNERS.

       (a) Ownership Entity.--Rental assistance under this title 
     may be provided for any eligible dwelling unit for which the 
     owner is any public agency, private person or entity 
     (including a cooperative), nonprofit organization, agency of 
     the Federal Government, or local housing and management 
     authority.
       (b) Ineligible Owners.--
       (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.
       (2) Prohibition of sale to related parties.--The Secretary 
     shall establish guidelines to prevent housing assistance 
     payments for a dwelling unit that is owned by any spouse, 
     child, or other party who allows an owner described in 
     paragraph (1) to maintain control of the unit.

     SEC. 327. SELECTION OF DWELLING UNITS.

       (a) Family Choice.--The determination of the dwelling unit 
     in which an assisted family resides and for which housing 
     assistance is provided under this title shall be made solely 
     by the assisted family, subject to the provisions of this 
     title and any applicable law.
       (b) Deed Restrictions.--Housing assistance may not be used 
     in any manner that abrogates any local deed restriction that 
     applies to any housing consisting of 1 to 4 dwelling units. 
     Nothing in this section may be construed to affect the 
     provisions or applicability of the Fair Housing Act.

     SEC. 328. ELIGIBLE DWELLING UNITS.

       (a) In General.--A dwelling unit shall be an eligible 
     dwelling unit for purposes of this title only if the local 
     housing and management authority to provide housing 
     assistance for the dwelling unit determines that the dwelling 
     unit--
       (1) is an existing dwelling unit that is not located within 
     a nursing home or the grounds of any penal, reformatory, 
     medical, mental, or similar public or private institution; 
     and
       (2) complies--
       (A) with applicable State or local laws, regulations, 
     standards, or codes regarding habitability of residential 
     dwellings that--
       (i) are in effect for the jurisdiction in which the 
     dwelling unit is located;
       (ii) provide protection to residents of the dwellings that 
     is equal to or greater than the protection provided under the 
     housing quality standards established under subsection (b); 
     and
       (iii) that do not severely restrict housing choice; or
       (B) in the case of a dwelling unit located in a 
     jurisdiction which does not have in effect laws, regulations, 
     standards, or codes described in subparagraph (A), with the 
     housing quality standards established under subsection (c).

     Each local housing and management authority providing housing 
     assistance shall identify, in the local housing management 
     plan for the authority, whether the authority is utilizing 
     the standard under subparagraph (A) or (B) of paragraph (2) 
     and, if the authority utilizes the standard under 
     subparagraph (A), shall certify in such plan that the 
     applicable State or local laws, regulations, standards, or 
     codes comply with the requirements under such subparagraph.
       (b) Determinations.--
       (1) In general.--A local housing and management authority 
     shall make the determinations required under subsection (a) 
     pursuant to an inspection of the dwelling unit conducted 
     before any assistance payment is made for the unit.
       (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 H4858]]

       (c) Federal Housing Quality Standards.--The Secretary shall 
     establish housing quality standards under this subsection 
     that ensure that assisted dwelling units are safe, clean, and 
     healthy. Such standards shall include requirements 
     relating to habitability, including maintenance, health 
     and sanitation factors, condition, and construction of 
     dwellings, and shall, to the greatest extent practicable, 
     be consistent with the standards established under section 
     232(b). The Secretary shall differentiate between major 
     and minor violations of such standards.
       (d) Annual Inspections.--Each local housing and management 
     authority providing housing assistance shall make an annual 
     inspection of each assisted dwelling unit during the term of 
     the housing assistance payments contracts for the unit to 
     determine whether the unit is maintained in accordance with 
     the requirements under subsection (a)(2). 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.
       (e) Inspection Guidelines.--The Secretary shall establish 
     procedural guidelines and performance standards to facilitate 
     inspections of dwelling units and conform such inspections 
     with practices utilized in the private housing market. Such 
     guidelines and standards shall take into consideration 
     variations in local laws and practices of local housing and 
     management authorities and shall provide flexibility to 
     authorities appropriate to facilitate efficient provision of 
     assistance under this title.
       (f) Rule of Construction.--This section may not be 
     construed to prevent the provision of housing assistance in 
     connection with supportive services for elderly or disabled 
     families.

     SEC. 329. HOMEOWNERSHIP OPTION.

       (a) In General.--A local housing and management authority 
     providing housing assistance under this title may provide 
     homeownership assistance to assist eligible families to 
     purchase a dwelling unit (including purchase under lease-
     purchase homeownership plans).
       (b) Requirements.--A local housing and management authority 
     providing homeownership assistance under this section shall, 
     as a condition of an eligible family receiving such 
     assistance, require the family to--
       (1) demonstrate that the family has sufficient income from 
     employment or other sources (other than public assistance), 
     as determined in accordance with requirements established by 
     the authority; and
       (2) meet any other initial or continuing requirements 
     established by the local housing and management authority.
       (c) Downpayment Requirement.--
       (1) In general.--A local housing and management authority 
     may establish minimum downpayment requirements, if 
     appropriate, in connection with loans made for the purchase 
     of dwelling units for which homeownership assistance is 
     provided under this section. If the authority establishes a 
     minimum downpayment requirement, except as provided in 
     paragraph (2) the authority shall permit the family to use 
     grant amounts, gifts from relatives, contributions from 
     private sources, and similar amounts as downpayment amounts 
     in such purchase.
       (2) Direct family contribution.--In purchasing housing 
     pursuant to this section subject to a downpayment 
     requirement, each family shall contribute an amount of the 
     downpayment, from resources of the family other than grants, 
     gifts, contributions, or other similar amounts referred to in 
     paragraph (1), that is not less than 1 percent of the 
     purchase price.
       (d) Ineligibility Under Other Programs.--A family may not 
     receive homeownership assistance pursuant to this section 
     during any period when assistance is being provided for the 
     family under other Federal homeownership assistance programs, 
     as determined by the Secretary, including assistance under 
     the HOME Investment Partnerships Act, the Homeownership and 
     Opportunity Through HOPE Act, title II of the Housing and 
     Community Development Act of 1987, and section 502 of the 
     Housing Act of 1949.

     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 only 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.
    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

     SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.

       (a) In General.--Each local housing and management 
     authority that receives amounts under a contract under 
     section 302 may enter into housing assistance payments 
     contracts with owners of existing dwelling units to make 
     housing assistance payments to such owners in accordance with 
     this title.
       (b) LHMA Acting As Owner.--A local housing and management 
     authority may enter into a housing assistance payments 
     contract to make housing assistance payments under this title 
     to itself (or any agency or instrumentality thereof) as the 
     owner of dwelling units (other than public housing), and the 
     authority shall be subject to the same requirements that are 
     applicable to other owners, except that the determinations 
     under section 328(a) and 354(b) shall be made by a competent 
     party not affiliated with the authority, and the authority 
     shall be responsible for any expenses of such determinations.
       (c) Provisions.--Each housing assistance payments contract 
     shall--
       (1) have a term of not more than 12 months;
       (2) require that the assisted dwelling unit may be rented 
     only pursuant to a lease that complies with the requirements 
     of section 324;
       (3) comply with the requirements of section 325 (relating 
     to termination of tenancy);
       (4) require the owner to maintain the dwelling unit in 
     accordance with the applicable standards under section 
     328(a)(2); and
       (5) provide that the screening and selection of eligible 
     families for assisted dwelling units shall be the function of 
     the owner.

     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);
       (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 the resident contribution determined in 
     accordance with section 322(a)(1) or 30 percent of the 
     family's adjusted monthly income;
       (3) 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; or
       (4) 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.
       (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.


[[Page H4859]]


     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.

     SEC. 353. PAYMENT STANDARDS.

       (a) Establishment.--Each local housing and management 
     authority providing housing assistance under this title shall 
     establish payment standards under this section for various 
     areas, and sizes and types of dwelling units, for use in 
     determining the amount of monthly housing assistance payment 
     to be provided on behalf of assisted families.
       (b) Use of Rental Indicators.--The payment standard for 
     each size and type of housing for each market area shall be 
     an amount that is not less than 80 percent, and not greater 
     than 120 percent, of the rental indicator established under 
     section 323 for such size and type for such area.
       (c) Review.--If the Secretary determines, at any time, that 
     a significant percentage of the assisted families who are 
     assisted by a local housing and management authority and are 
     occupying dwelling units of a particular size are paying more 
     than 30 percent of their adjusted incomes for rent, the 
     Secretary shall review the payment standard established by 
     the authority for such size dwellings. If, pursuant to the 
     review, the Secretary determines that such payment standard 
     is not appropriate to serve the needs of the low-income 
     population of the jurisdiction served by the authority 
     (taking into consideration rental costs in the area), as 
     identified in the approved community improvement plan of the 
     authority, the Secretary may require the local housing and 
     management authority to modify the payment standard.

     SEC. 354. REASONABLE RENTS.

       (a) Establishment.--The rent charged for a dwelling unit 
     for which rental assistance is provided under this title 
     shall be established pursuant to negotiation and agreement 
     between the assisted family and the owner of the dwelling 
     unit.
       (b) Reasonableness.--
       (1) Determination.--A local housing and management 
     authority providing rental assistance under this title for a 
     dwelling unit shall, before commencing assistance payments 
     for a unit (with respect to initial contract rents and any 
     rent revisions), determine whether the rent charged for the 
     unit exceeds the rents charged for comparable units in the 
     applicable private unassisted market.
       (2) Unreasonable rents.--If the authority determines that 
     the rent charged for a dwelling unit exceeds such comparable 
     rents, the authority shall--
       (A) inform the assisted family renting the unit that such 
     rent exceeds the rents for comparable unassisted units in the 
     market; and
       (B) refuse to provide housing assistance payments for such 
     unit.

     SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT RENTAL UNITS.

       If an assisted family vacates a dwelling unit for which 
     rental assistance is provided under a housing assistance 
     payments contract before the expiration of the term of the 
     lease for the unit, rental assistance pursuant to such 
     contract may not be provided for the unit after the month 
     during which the unit was vacated.
            Subtitle D--General and Miscellaneous Provisions

     SEC. 371. DEFINITIONS.

       For purposes of this title:
       (1) Assisted dwelling unit.--The term ``assisted dwelling 
     unit'' means a dwelling unit in which an assisted family 
     resides and for which housing assistance payments are made 
     under this title.
       (2) Assisted family.--The term ``assisted family'' means an 
     eligible family on whose behalf housing assistance payments 
     are made under this title or who has been selected and 
     approved for housing assistance.
       (3) Choice-based.--The term ``choice-based'' means, with 
     respect to housing assistance, that the assistance is not 
     attached to a dwelling unit but can be used for any eligible 
     dwelling unit selected by the eligible family.
       (4) Eligible dwelling unit.--The term ``eligible dwelling 
     unit'' means a dwelling unit that complies with the 
     requirements under section 328 for consideration as an 
     eligible dwelling unit.
       (5) Eligible family.--The term ``eligible family'' means a 
     family that meets the requirements under section 321(a) for 
     assistance under this title.
       (6) Homeownership assistance.--The term ``homeownership 
     assistance'' means housing assistance provided under section 
     329 for the ownership of a dwelling unit.
       (7) Housing assistance.--The term ``housing assistance'' 
     means assistance provided under this title on behalf of low-
     income families for the rental or ownership of an eligible 
     dwelling unit.
       (8) Housing assistance payments contract.--The term 
     ``housing assistance payments contract'' means a contract 
     under section 351 between a local housing and management 
     authority (or the Secretary) and an owner to make housing 
     assistance payments under this title to the owner on behalf 
     of an assisted family.
       (9) Local housing and management authority.--The terms 
     ``local housing and management authority'' and ``authority'' 
     have the meaning given such terms in section 103, except that 
     the terms include--
       (A) a consortia of local housing and management authorities 
     that the Secretary determines has the capacity and capability 
     to administer a program for housing assistance under this 
     title in an efficient manner;
       (B) any other entity that, upon the date of the enactment 
     of this Act, was administering any program for tenant-based 
     rental assistance under section 8 of the United States 
     Housing Act of 1937 (as in effect before the enactment of 
     this Act), pursuant to a contract with the Secretary or a 
     public housing agency; and
       (C) with respect to any area in which no local housing and 
     management authority has been organized or where the 
     Secretary determines that a local housing and management 
     authority is unwilling or unable to implement this title, or 
     is not performing effectively--
       (i) the Secretary or another entity that by contract agrees 
     to receive assistance amounts under this title and enter into 
     housing assistance payments contracts with owners and perform 
     the other functions of local housing and management authority 
     under this title; or
       (ii) notwithstanding any provision of State or local law, a 
     local housing and management authority for another area that 
     contracts with the Secretary to administer a program for 
     housing assistance under this title, without regard to any 
     otherwise applicable limitations on its area of operation.
       (10) Owner.--The term ``owner'' means the person or entity 
     having the legal right to lease or sublease dwelling units. 
     Such term includes any principals, general partners, primary 
     shareholders, and other similar participants in any entity 
     owning a multifamily housing project, as well as the entity 
     itself.
       (11) Rent.--The terms ``rent'' and ``rental'' include, with 
     respect to members of a cooperative, the charges under the 
     occupancy agreements between such members and the 
     cooperative.
       (12) Rental assistance.--The term ``rental assistance'' 
     means housing assistance provided under this title for the 
     rental of a dwelling unit.

     SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.

       (a) Authority To Retain Recovered Amounts.--The Secretary 
     shall permit local housing and management authorities 
     administering housing assistance under this title to retain, 
     out of amounts obtained by the authorities from tenants that 
     are due as a result of fraud and abuse, an amount (determined 
     in accordance with regulations issued by the Secretary) equal 
     to the greater of--
       (1) 50 percent of the amount actually collected; or
       (2) the actual, reasonable, and necessary expenses related 
     to the collection, including costs of investigation, legal 
     fees, and collection agency fees.
       (b) Use.--Amounts retained by an authority shall be made 
     available for use in support of the affected program or 
     project, in accordance with regulations issued by the 
     Secretary. If the Secretary is the principal party initiating 
     or sustaining an action to recover amounts from families or 
     owners, the provisions of this section shall not apply.
       (c) Recovery.--Amounts may be recovered under this 
     section--
       (1) by an authority through a lawsuit (including settlement 
     of the lawsuit) brought by the authority or through court-
     ordered restitution pursuant to a criminal proceeding 
     resulting from an authority's investigation where the 
     authority seeks prosecution of a family or where an authority 
     seeks prosecution of an owner;
       (2) through administrative repayment agreements with a 
     family or owner entered into as a result of an administrative 
     grievance procedure conducted by an impartial decisionmaker 
     in accordance with section 111; or
       (3) through an agreement between the parties.

     SEC. 373. STUDY REGARDING GEOGRAPHIC CONCENTRATION OF 
                   ASSISTED FAMILIES.

       (a) In General.--The Secretary shall conduct a study of the 
     geographic areas in the State of Illinois served by the 
     Housing Authority of Cook County and the Chicago Housing 
     Authority and submit to the Congress a report and a specific 
     proposal, which addresses and resolves the issues of--
       (1) the adverse impact on local communities due to 
     geographic concentration of assisted households under the 
     tenant-based housing programs under section 8 of the United 
     States Housing Act of 1937 (as in effect immediately before 
     the enactment of this Act) and under this title; and
       (2) facilitating the deconcentration of such assisted 
     households by providing broader housing choices to such 
     households.

     The study shall be completed, and the report shall be 
     submitted, not later than 90 days after the date of the 
     enactment of this Act.
       (b) Concentration.--For purposes of this section, the term 
     ``concentration'' means, with respect to any area within a 
     census tract, that--
       (1) 15 percent or more of the households residing within 
     such area have incomes which do not exceed the poverty level; 
     or
       (2) 15 percent or more of the total affordable housing 
     stock located within such area is assisted housing.
 TITLE IV--ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING AND MANAGEMENT 
                              AUTHORITIES
         Subtitle A--Housing Foundation and Accreditation Board

     SEC. 401. ESTABLISHMENT.

       There is established an independent agency in the executive 
     branch of the Government to be known as the Housing 
     Foundation and Accreditation Board (in this title referred to 
     as the ``Board'').

     SEC. 402. MEMBERSHIP.

       (a) In General.--The Board shall be composed of 12 members 
     appointed by the President not later than 180 days after the 
     date of the enactment of this Act, as follows:
       (1) 4 members shall be appointed from among 10 individuals 
     recommended by the Secretary of Housing and Urban 
     Development.
       (2) 4 members shall be appointed from among 10 individuals 
     recommended by the Chairman

[[Page H4860]]

     and Ranking Minority Member of the Committee on Banking, 
     Housing, and Urban Affairs of the Senate.
       (3) 4 members appointed from among 10 individuals 
     recommended by the Chairman and Ranking Minority Member of 
     the Committee on Banking and Financial Services of the House 
     of Representatives.
       (b) Qualifications.--
       (1) Required representation.--The Board shall at all times 
     have the following members:
       (A) 2 members who are residents of public housing or 
     dwelling units assisted under title III of this Act or the 
     provisions of section 8 of the United States Housing Act of 
     1937 (as in effect before the enactment of this Act).
       (B) at least 2, but not more than 4 members who are 
     executive directors of local housing and management 
     authorities.
       (C) 1 member who is a member of the Institute of Real 
     Estate Managers.
       (D) 1 member who is the owner of a multifamily housing 
     project assisted under a program administered by the 
     Secretary of Housing and Urban Development.
       (2) Required experience.--The Board shall at all times have 
     as members individuals with the following experience:
       (A) At least 1 individual who has extensive experience in 
     the residential real estate finance business.
       (B) At least 1 individual who has extensive experience in 
     operating a nonprofit organization that provides affordable 
     housing.
       (C) At least 1 individual who has extensive experience in 
     construction of multifamily housing.
       (D) At least 1 individual who has extensive experience in 
     the management of a community development corporation.
       (E) At least 1 individual who has extensive experience in 
     auditing participants in government programs.

     A single member of the board with the appropriate experience 
     may satisfy the requirements of more than 1 subparagraph of 
     this paragraph. A single member of the board with the 
     appropriate qualifications and experience may satisfy the 
     requirements of a subparagraph of paragraph (1) and a 
     subparagraph of this paragraph.
       (c) Political Affiliation.--Not more than 6 members of the 
     Board may be of the same political party.
       (d) Terms.--
       (1) In general.--Each member of the Board shall be 
     appointed for a term of 4 years, except as provided in 
     paragraphs (2) and (3).
       (2) Terms of initial appointees.--As designated by the 
     President at the time of appointment, of the members first 
     appointed--
       (A) 3 shall be appointed for terms of 1 year;
       (B) 3 shall be appointed for terms of 2 years;
       (C) 3 shall be appointed for terms of 3 years; and
       (D) 3 shall be appointed for terms of 4 years;
       (3) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office. A vacancy in the Board shall be filled in the manner 
     in which the original appointment was made.
       (e) Chairperson.--The Board shall elect a chairperson from 
     among members of the Board.
       (f) Quorum.--A majority of the members of the Board shall 
     constitute a quorum for the transaction of business.
       (g) Voting.--Each member of the Board shall be entitled to 
     1 vote, which shall be equal to the vote of every other 
     member of the Board.
       (h) Prohibition on Additional Pay.--Members of the Board 
     shall serve without compensation, but shall be reimbursed for 
     travel, subsistence, and other necessary expenses incurred in 
     the performance of their duties as members of the Board.

     SEC. 403. FUNCTIONS.

       The purpose of this subtitle is to establish the Board as a 
     nonpolitical entity to carry out the following functions:
       (1) Evaluation of deep subsidy programs.--Measuring the 
     performance and efficiency of all ``deep subsidy'' programs 
     for housing assistance administered by the Secretary of 
     Housing and Urban Development, including the public housing 
     program under title II and the programs for tenant- and 
     project-based rental assistance under title III and section 8 
     of the United States Housing Act of 1937 (as in effect before 
     the enactment of this Act).
       (2) Establishment of lhma performance benchmarks.--
     Establishing standards and guidelines under section 431 for 
     use by the Secretary in measuring the performance and 
     efficiency of local housing and management authorities and 
     other owners and providers of federally assisted housing in 
     carrying out operational and financial functions.
       (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.
       (4) Accreditation of lhma's.--Establishing a procedure 
     under section 431(b) for accrediting local housing and 
     management authorities to receive block 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 are conducted annually for each local housing and 
     management authority, and reviewing such audits for purposes 
     of accreditation.
       (5) Classification of lhma's.--Classifying local housing 
     and management authorities, under to section 434, according 
     to the performance categories under section 431(a)(2).

     SEC. 404. INITIAL ESTABLISHMENT OF STANDARDS AND PROCEDURES 
                   FOR LHMA COMPLIANCE.

       (a) Deadline.--Not later than the expiration of the 12-
     month period beginning upon the completion of the 
     appointment, under section 402, of the initial members of the 
     Board, the Board shall organize its structure and operations, 
     establish the standards, guidelines, and procedures under 
     sections 431, and establish any fees under section 406. 
     Before issuing such standards, guidelines, and procedures in 
     final form, the Board shall submit a copy to the Congress.
       (b) Priority of Initial Evaluations.--After organization of 
     the Board and establishment of standards, guidelines, and 
     procedures under sections 431, the Board shall commence 
     evaluations under section 433(b) for the purpose of 
     accrediting local housing and management authorities and 
     shall give priority to conducting evaluations of local 
     housing and management authorities that are designated as 
     troubled public housing agencies under section 6(j) of the 
     United States Housing Act of 1937 (as in effect before the 
     date of the enactment of this Act) pursuant to section 
     431(d).
       (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).

     SEC. 405. POWERS.

       (a) Hearings.--The Board may, for the purpose of carrying 
     out this subtitle, hold such hearings and sit and act at such 
     times and places as the Board determines appropriate.
       (b) Rules and Regulations.--The Board 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 Board may secure directly from any 
     department or agency of the Federal Government such 
     information as the Board may require for carrying out its 
     functions, including local housing management plans 
     submitted to the Secretary by local housing and management 
     authorities under title II. Upon request of the Board, any 
     such department or agency shall furnish such information. 
     The Board may acquire information directly from local 
     housing and management authorities to the same extent the 
     Secretary may acquire such information.
       (2) General services administration.--The Administrator of 
     General Services shall provide to the Board, on a 
     reimbursable basis, such administrative support services as 
     the Board may request.
       (3) Department of housing and urban development.--Upon the 
     request of the chairperson of the Board, the Secretary of 
     Housing and Urban Development shall, to the extent possible 
     and subject to the discretion of the Secretary, detail any of 
     the personnel of the Department of Housing and Urban 
     Development, on a nonreimbursable basis, to assist the Board 
     in carrying out its functions under this subtitle.
       (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.
       (d) Mails.--The Board may use the United States mails in 
     the same manner and under the same conditions as other 
     Federal agencies.
       (e) Contracting.--The Board may, to such extent and in such 
     amounts as are provided in appropriation Acts, enter into 
     contracts with private firms, institutions, and individuals 
     for the purpose of conducting evaluations under section 
     404(b), audits of local housing and management authorities as 
     provided under section 432, research, and surveys necessary 
     to enable the Board to discharge its functions under this 
     subtitle, and may enter into contracts with the National 
     Center for Housing Management to conduct the functions 
     assigned to the Center under this title.
       (f) Staff.--
       (1) Executive director.--The Board shall appoint an 
     executive director of the Board, who shall be compensated at 
     a rate fixed by the Board, but which shall not exceed the 
     rate established for level V of the Executive Schedule under 
     title 5, United States Code.
       (2) Other personnel.--In addition to the executive 
     director, the Board may appoint and fix the compensation of 
     such personnel as the Board considers necessary, 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. Such personnel may include personnel for 
     assessment teams under section 431(b).

[[Page H4861]]

     SEC. 406. FEES.

       (a) Accreditation Fees.--The Board may establish and charge 
     fees for the accreditation of local housing and management 
     authorities as the Board considers necessary to cover the 
     costs of the operations of the Board relating to establishing 
     standards, guidelines, and procedures for evaluating the 
     performance of local housing and management authorities, 
     performing comprehensive reviews relating to the 
     accreditation of such authorities, and conducting audits of 
     authorities under section 432.
       (b) Fund.--Any fees collected under this section shall be 
     deposited in an operations fund for the Board, which is 
     hereby established in the Treasury of the United States. 
     Amounts in such fund shall be available, to the extent 
     provided in appropriation Acts, for the expenses of the Board 
     in carrying out its functions under this subtitle.

     SEC. 407. REPORTS.

       (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.
       (b) Annual Reports.--The Board shall submit a report to the 
     Congress annually describing, for the year for which the 
     report is made--
       (1) any modifications made by the Board to the standards, 
     guidelines, and procedures issued under section 431 by the 
     Board;
       (2) the results of the assessments, reviews, and 
     evaluations conducted by the Board under subtitle B;
       (3) the types and extent of assistance, information, and 
     products provided by the Board; and
       (4) any other activities of the Board.

     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.
    Subtitle B--Accreditation and Oversight Standards and Procedures

     SEC. 431. ESTABLISHMENT OF PERFORMANCE BENCHMARKS AND 
                   ACCREDITATION PROCEDURES.

       (a) Performance Benchmarks.--
       (1) Performance areas.--The Housing Foundation and 
     Accreditation Board established under section 401 (in this 
     subtitle referred to as the ``Board'') shall establish 
     standards and guidelines, for use under section 434, to 
     measure the performance of local housing and management 
     authorities in all aspects relating to--
       (A) operational and financial functions;
       (B) providing, maintaining, and assisting low-income 
     housing--
       (i) that is safe, clean, and healthy, as required under 
     sections 232 and 328;
       (ii) in a manner consistent with the comprehensive housing 
     affordability strategy under section 105 of the Cranston-
     Gonzalez National Affordable Housing Act, if appropriate;
       (iii) that is occupied by eligible families; and
       (iv) that is affordable to eligible families;
       (C) producing low-income housing and executing capital 
     projects, if applicable;
       (D) administering the provision of housing assistance under 
     title III;
       (E) accomplishing the goals and plans set forth in the 
     local housing management plan for the authority;
       (F) promoting responsibility and self-sufficiency among 
     residents of public housing developments of the authority and 
     assisted families under title III; and
       (G) complying with the other requirements of the authority 
     under block grant contracts under title II, grant agreements 
     under title III, and the provisions of this Act.
       (2) Performance categories.--In establishing standards and 
     guidelines under this section, the Board shall define various 
     levels of performance, which shall include the following 
     levels:
       (A) Exceptionally well-managed.--A minimum acceptable level 
     of performance in the areas specified in paragraph (1) for 
     classification of a local housing and management authority as 
     exceptionally well-managed, which shall indicate that the 
     authority functions exceptionally.
       (B) Well-managed.--A minimum acceptable level of 
     performance in the areas specified in paragraph (1) for 
     classification of a local housing and management authority as 
     well-managed, which shall indicate that the authority 
     functions satisfactorily.
       (C) At risk of becoming troubled.--A minimum acceptable 
     level of performance in the areas specified in paragraph (1) 
     for classification of a local housing and management 
     authority as at risk of becoming troubled, which shall 
     indicate that there are elements in the operations, 
     management, or functioning of the authority that must be 
     addressed before they result in serious and complicated 
     deficiencies.
       (D) Troubled.--A minimum level of performance in the areas 
     specified in paragraph (1) for classification of a local 
     housing and management authority as a troubled authority, 
     which shall indicate that the authority functions 
     unsatisfactorily with respect to certain areas under 
     paragraph (1), but such deficiencies are not irreparable.
       (E) Dysfunctional.--A maximum level of performance in the 
     areas specified in paragraph (1) for classification of a 
     local housing and management authority as dysfunctional, 
     which shall indicate that the authority suffers such 
     deficiencies that the authority should not be allowed to 
     continue to manage low-income housing or administer housing 
     assistance.
       (3) Accreditation standard.--In establishing standards and 
     guidelines under this section, the Board shall establish a 
     minimum acceptable level of performance for accrediting a 
     local housing and management authority for purposes of 
     authorizing the authority to enter into a new block grant 
     contract under title II or a new grant agreement under title 
     III.
       (b) Accreditation Procedure.--The Accreditation Board shall 
     establish procedures for--
       (1) reviewing the performance of a local housing and 
     management authority over the term of the expiring 
     accreditation, which review shall be conducted during the 12-
     month period that ends upon the conclusion of the term of the 
     expiring accreditation;
       (2) evaluating the capability of a local housing and 
     management authority that proposes to enter into an initial 
     block grant contract under title II or an initial grant 
     agreement under title III; and
       (3) determining whether the authority complies with the 
     standards and guidelines for accreditation established under 
     subsection (a)(3).
     The procedures for a review or evaluation under this 
     subsection shall provide for the review or evaluation to be 
     conducted by an assessment team established by the Board, 
     which shall review annual financial and performance audits 
     conducted under section 432 and obtain such information as 
     the Board may require.
       (c) Identification of Potential Problems.--The standards 
     and guidelines under subsection (a) and the procedure under 
     subsection (b) shall be established in a manner designed to 
     identify potential problems in the operations, management, 
     functioning of local housing and management authorities at a 
     time before such problems result in serious and complicated 
     deficiencies.
       (d) Interim Applicability of PHMAP.--Notwithstanding any 
     other provision of this subtitle, during the period that 
     begins on the date of the enactment of this Act and ends upon 
     the date of the effectiveness of final regulations 
     establishing the standards, guidelines, and procedures 
     required under this section and section 432, the Secretary 
     shall assess the management performance of local housing and 
     management authorities in the same manner provided for public 
     housing agencies pursuant to section 6(j) of the United 
     States Housing Act of 1937 (as in effect immediately before 
     the enactment of this Act) and may take actions with respect 
     to local housing and management authorities that are 
     authorized under such section with respect to public housing 
     agencies.

     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

[[Page H4862]]

     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--
       (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.

     SEC. 433. ACCREDITATION.

       (a) Review Upon Expiration of Previous Accreditation.--The 
     Accreditation Board shall perform a comprehensive review of 
     the performance of a local housing and management authority, 
     in accordance with the procedures established under section 
     431(b), before the expiration of the term for which a 
     previous accreditation was granted under this subtitle.
       (b) Initial Evaluation.--
       (1) In general.--Before entering into an initial block 
     grant contract under title II or an initial contract pursuant 
     to section 302 for assistance under title III with any local 
     housing and management authority, the Board shall conduct a 
     comprehensive evaluation of the capabilities of the local 
     housing and management authority.
       (2) Exception.--Paragraph (1) shall not apply to an initial 
     block grant contract or grant agreement entered into during 
     the period beginning upon the date of the enactment of this 
     Act and ending upon the date of the effectiveness of final 
     regulations establishing the standards, guidelines, and 
     procedures required under section 431 with any public housing 
     agency that received amounts under the United States Housing 
     Act of 1937 during fiscal year 1995.
       (c) Determination and Report.--Pursuant to a review or 
     evaluation under this section, the Board shall determine 
     whether the authority meets the requirements for 
     accreditation under section 431(a)(3), shall accredit the 
     authority if it meets such requirements, and shall submit a 
     report on the results of the review or evaluation and such 
     determination to the Secretary and the authority.
       (d) Accreditation.--An accreditation under this section 
     shall expire at the end the term established by the Board in 
     granting the accreditation, which may not exceed 5 years. The 
     Board may qualify an accreditation placing conditions on the 
     accreditation based on the future performance of the 
     authority.

     SEC. 434. CLASSIFICATION BY PERFORMANCE CATEGORY.

       Upon completing the accreditation process under section 433 
     with respect to a local housing and management authority, the 
     Housing Finance and Accreditation Board shall designate the 
     authority according to the performance categories under 
     section 431(a)(2). In determining the classification of an 
     authority, the Board shall consider the most recent financial 
     and performance audit under section 432 of the authority and 
     accreditation reports under section 433(c) for the authority.

     SEC. 435. PERFORMANCE AGREEMENTS FOR AUTHORITIES AT RISK OF 
                   BECOMING TROUBLED.

       (a) In General.--Upon designation of a local housing and 
     management authority as at risk of becoming troubled under 
     section 431(a)(2)(C), the Secretary shall seek to enter into 
     an agreement with the authority providing for improvement of 
     the elements of the authority that have been identified. An 
     agreement under this section shall contain such terms and 
     conditions as the Secretary determines are appropriate for 
     addressing the elements identified, which may include an on-
     site, independent assessment of the management of the 
     authority.
       (b) Powers of Secretary.--If the Secretary determines that 
     such action is necessary to prevent the local housing and 
     management authority from becoming a troubled authority, the 
     Secretary may--
       (1) solicit competitive proposals from other local housing 
     and management authorities and private housing management 
     agents (which may be selected by existing tenants through 
     administrative procedures established by the Secretary), for 
     any case in which such agents may be needed for managing all, 
     or part, of the housing or functions administered by the 
     authority; or
       (2) solicit competitive proposals from other local housing 
     and management authorities and private entities with 
     experience in construction management, for any case in which 
     such authorities or firms may be needed to oversee 
     implementation of assistance made available for capital 
     improvement for public housing of the authority.

     SEC. 436. PERFORMANCE AGREEMENTS AND CDBG SANCTIONS FOR 
                   TROUBLED LHMA'S.

       (a) In General.--Upon designation of a local housing and 
     management authority as a troubled authority under section 
     431(a)(2)(D), the Secretary shall seek to enter into an 
     agreement with the authority providing for improving the 
     management performance of the authority.
       (b) Contents.--An agreement under this section between the 
     Secretary and a local housing and management authority shall 
     set forth--
       (1) targets for improving performance, as measured by the 
     guidelines and standards established under section 431(a)(1) 
     and other requirements within a specified period of time, 
     which shall include targets to be met upon the expiration of 
     the 12-month period beginning upon entering into the 
     agreement;
       (2) strategies for meeting such targets;
       (3) sanctions for failure to implement such strategies; and
       (4) to the extent the Secretary deems appropriate, a plan 
     for enhancing resident involvement in the management of the 
     local housing and management authority.
       (c) Local Assistance in Implementation.--The Secretary and 
     the local housing and management authority shall, to the 
     maximum extent practicable, seek the assistance of local 
     public and private entities in carrying out an agreement 
     under this section.
       (d) Default Under Performance Agreement.--Upon the 
     expiration of the 12-month period beginning upon entering 
     into an agreement under this section with a local housing and 
     management authority, the Secretary shall review the 
     performance of the authority in relation to the performance 
     targets and strategies under the agreement. If the Secretary 
     determines that the authority has failed to comply with the 
     performance targets established for such period, the 
     Secretary shall take the action authorized under subsection 
     (b)(2) or (b)(5) of section 438.
       (e) CDBG Sanction Against Local Government Contributing to 
     Troubled Status of LHMA.--If the Secretary determines that 
     the actions or inaction of any unit of general local 
     government within which any portion of the jurisdiction of a 
     local housing and management authority is located has 
     substantially contributed to the conditions resulting in the 
     authority being designated under section 431(a)(2)(D) as a 
     troubled authority, the Secretary may redirect or withhold, 
     from such unit of general local government any amounts 
     allocated for such unit under section 106 of such Act.

     SEC. 437. OPTION TO DEMAND CONVEYANCE OF TITLE TO OR 
                   POSSESSION OF PUBLIC HOUSING.

       (a) Authority for Conveyance.--A contract under section 201 
     for block grants under title II (including contracts which 
     amend or supersede contracts previously made (including 
     contracts

[[Page H4863]]

     for contributions)) may provide that upon the occurrence of a 
     substantial default with respect to the covenants or 
     conditions to which the local housing and management 
     authority is subject (as such substantial default shall be 
     defined in such contract) or upon designation of the 
     authority as dysfunctional pursuant to section 431(a)(2)(E), 
     the local housing and management authority shall be 
     obligated, at the option of the Secretary, to--
       (1) convey title in any case where, in the determination of 
     the Secretary (which determination shall be final and 
     conclusive), such conveyance of title is necessary to achieve 
     the purposes of this Act; or
       (2) deliver to the Secretary possession of the development, 
     as then constituted, to which such contract relates.
       (b) Obligation to Reconvey.--Any block grant contract under 
     title II containing the provisions authorized in subsection 
     (a) shall also provide that the Secretary shall be obligated 
     to reconvey or redeliver possession of the development, as 
     constituted at the time of reconveyance or redelivery, to 
     such local housing and management authority or to its 
     successor (if such local housing and management authority or 
     a successor exists) upon such terms as shall be prescribed in 
     such contract, and as soon as practicable after--
       (1) the Secretary is satisfied that all defaults with 
     respect to the development have been cured, and that the 
     development will, in order to fulfill the purposes of this 
     Act, thereafter be operated in accordance with the terms of 
     such contract; or
       (2) the termination of the obligation to make annual block 
     grants to the authority, unless there are any obligations or 
     covenants of the authority to the Secretary which are then in 
     default.

     Any prior conveyances and reconveyances or deliveries and 
     redeliveries of possession shall not exhaust the right to 
     require a conveyance or delivery of possession of the 
     development to the Secretary pursuant to subsection (a) upon 
     the subsequent occurrence of a substantial default.
       (c) Continued Grants for Repayment of Bonds and Notes Under 
     1937 Act.--If--
       (1) a contract for block grants under title II for an 
     authority includes provisions that expressly state that the 
     provisions are included pursuant to this subsection, and
       (2) the portion of the block grant payable for debt service 
     requirements pursuant to the contract has been pledged by the 
     local housing and management authority as security for the 
     payment of the principal and interest on any of its 
     obligations, then--
       (A) the Secretary shall (notwithstanding any other 
     provisions of this Act), continue to make the block grant 
     payments for the authority so long as any of such obligations 
     remain outstanding; and
       (B) the Secretary may covenant in such a contract that in 
     any event such block grant amounts shall in each year be at 
     least equal to an amount which, together with such income or 
     other funds as are actually available from the development 
     for the purpose at the time such block grant payments are 
     made, will suffice for the payment of all installments of 
     principal and interest on the obligations for which the 
     amounts provided for in the contract shall have been pledged 
     as security that fall due within the next succeeding 12 
     months.
     In no case shall such block grant amounts be in excess of the 
     maximum sum specified in the contract involved, nor for 
     longer than the remainder of the maximum period fixed by the 
     contract.

     SEC. 438. REMOVAL OF INEFFECTIVE LHMA'S.

       (a) Conditions of Removal.--The actions specified in 
     subsection (b) may be taken only upon--
       (1) the occurrence of events or conditions that constitute 
     a substantial default by a local housing and management 
     authority with respect to (A) the covenants or conditions to 
     which the local housing and management authority is subject, 
     or (B) an agreement entered into under section 436;
       (2) designation of the authority as dysfunctional pursuant 
     to section 431(a)(2)(E);
       (3) in the case only of action under subsection (b)(1), 
     failure of a local housing and management authority to obtain 
     reaccreditation upon the expiration of the term of a previous 
     accreditation granted under this subtitle; or
       (4) submission to the Secretary of a petition by the 
     residents of the public housing owned or operated by a local 
     housing and management authority that is designated as 
     troubled or dysfunctional pursuant to section 431(a)(2).
       (b) Removal Actions.--Notwithstanding any other provision 
     of law or of any block grant contract under title II or any 
     grant agreement under title III, in accordance with 
     subsection (a), the Secretary may--
       (1) solicit competitive proposals from other local housing 
     and management authorities and private housing management 
     agents (which, in the discretion of the Secretary, may be 
     selected by existing public housing residents through 
     administrative procedures established by the Secretary) and, 
     if appropriate, provide for such agents to manage all, or 
     part, of the housing administered by the local housing and 
     management authority or all or part of the other functions of 
     the authority;
       (2) take possession of the local housing and management 
     authority, including any developments or functions of the 
     authority under any section of this Act;
       (3) solicit competitive proposals from other local housing 
     and management authorities and private entities with 
     experience in construction management and, if appropriate, 
     provide for such authorities or firms to oversee 
     implementation of assistance made available for capital 
     improvements for public housing;
       (4) require the authority to make other arrangements 
     acceptable to the Secretary and in the best interests of the 
     public housing residents and assisted families under title 
     III for managing all, or part of, the public housing 
     administered by the authority or the functions of the 
     authority; or
       (5) petition for the appointment of a receiver for the 
     local housing and management authority to any district court 
     of the United States or to any court of the State in which 
     any portion of the jurisdiction of the local housing and 
     management authority is located, that is authorized to 
     appoint a receiver for the purposes and having the powers 
     prescribed in this section.
       (c) Emergency Assistance.--The Secretary may make available 
     to receivers and other entities selected or appointed 
     pursuant to this section such assistance as is fair and 
     reasonable to remedy the substantial deterioration of living 
     conditions in individual public housing developments or other 
     related emergencies that endanger the health, safety and 
     welfare of public housing residents or assisted families 
     under title III.
       (d) Powers of Secretary.--If the Secretary takes possession 
     of an authority, or any developments or functions of an 
     authority, pursuant to subsection (b)(2), the Secretary--
       (1) may abrogate contracts that substantially impede 
     correction of the substantial default or improvement of the 
     classification, but only after efforts to renegotiate such 
     contracts have failed;
       (2) may demolish and dispose of assets of the authority in 
     accordance with subtitle E of title II;
       (3) where determined appropriate by the Secretary, may 
     require the establishment of one or more new local housing 
     and management authorities;
       (4) may consolidate the authority into other well-managed 
     local housing and management authorities with the consent of 
     such well-managed authorities;
       (5) shall not be subject to any State or local laws 
     relating to civil service requirements, employee rights, 
     procurement, or financial or administrative controls that, in 
     the determination of the Secretary, substantially impede 
     correction of the substantial default or improvement of the 
     classification; and
       (6) shall have such additional authority as a district 
     court of the United States has the authority to confer under 
     like circumstances upon a receiver to achieve the purposes of 
     the receivership.

     The Secretary may appoint, on a competitive or noncompetitive 
     basis, an individual or entity as an administrative receiver 
     to assume the Secretary's responsibility under this paragraph 
     for the administration of a local housing and management 
     authority. The Secretary may delegate to the administrative 
     receiver any or all of the powers of the Secretary under this 
     subsection. Regardless of any delegation under this 
     subsection, an administrative receiver may not require the 
     establishment of one or more new local housing and management 
     authorities pursuant to paragraph (3) unless the Secretary 
     first approves such establishment. For purposes of this 
     subsection, the term ``local housing and management 
     authority'' includes any developments or functions of a local 
     housing and management authority under any section of this 
     title.
       (e) Receivership.--
       (1) Required appointment.--In any proceeding under 
     subsection (b)(5), upon a determination that a substantial 
     default has occurred, and without regard to the availability 
     of alternative remedies, the court shall appoint a receiver 
     to conduct the affairs of the local housing and management 
     authority in a manner consistent with this Act and in 
     accordance with such further terms and conditions as the 
     court may provide. The receiver appointed may be another 
     local housing and management authority, a private management 
     corporation, the Secretary, or any other appropriate entity. 
     The court shall have power to grant appropriate temporary or 
     preliminary relief pending final disposition of the petition 
     by the Secretary.
       (2) Powers of receiver.--If a receiver is appointed for a 
     local housing and management authority pursuant to subsection 
     (b)(5), in addition to the powers accorded by the court 
     appointing the receiver, the receiver--
       (A) may abrogate contracts that substantially impede 
     correction of the substantial default or improvement of the 
     classification;
       (B) may demolish and dispose of assets of the authority in 
     accordance with subtitle E of title II;
       (C) where determined appropriate by the Secretary, may 
     require the establishment of one or more new local housing 
     and management authorities, to the extent permitted by State 
     and local law; and
       (D) except as provided in subparagraph (C), shall not be 
     subject to any State or local laws relating to civil service 
     requirements, employee rights, procurement, or financial or 
     administrative controls that, in the determination of the 
     receiver, substantially impede correction of the substantial 
     default or improvement of the classification.

     For purposes of this paragraph, the term ``local housing and 
     management authority'' includes any developments or functions 
     of a local housing and management authority under any section 
     of this title.
       (3) Termination.--The appointment of a receiver pursuant to 
     this subsection may be terminated, upon the petition of any 
     party, when the court determines that all defaults have been 
     cured or the local housing and management authority will be 
     able to make the same amount of progress in correcting the 
     management of the housing as the receiver.
       (f) Liability.--If the Secretary takes possession of an 
     authority pursuant to subsection

[[Page H4864]]

     (b)(2) or a receiver is appointed pursuant to subsection 
     (b)(5) for a local housing and management authority, the 
     Secretary or the receiver shall be deemed to be acting in the 
     capacity of the local housing and management authority (and 
     not in the official capacity as Secretary or other official) 
     and any liability incurred shall be a liability of the local 
     housing and management authority.
       (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.

     SEC. 439. MANDATORY TAKEOVER OF CHRONICALLY TROUBLED PHA'S.

       (a) Removal of Agency.--Notwithstanding any other provision 
     of this Act, not later than the expiration of the 180-day 
     period beginning on the date of the enactment of this Act, 
     the Secretary shall take one of the following actions with 
     respect to each chronically troubled public housing agency:
       (1) Contracting for management.--Solicit competitive 
     proposals for the management of the agency pursuant to 
     section 437(b)(1) and replace the management of the agency 
     pursuant to selection of such a proposal.
       (2) Takeover.--Take possession of the agency pursuant to 
     section 437(b)(2) of such Act.
       (b) Definition.--For purposes of this section, the term 
     ``chronically troubled public housing agency'' means a public 
     housing agency that, as of the date of the enactment of this 
     Act, is designated under section 6(j)(2) of the United States 
     Housing Act of 1937 (as in effect immediately before the 
     enactment of this Act) as a troubled public housing agency 
     and has been so designated continuously for the 3-year period 
     ending upon such date of enactment; except that such term 
     does not include any agency that owns or operates less than 
     1250 public housing dwelling units and that the Secretary 
     determines can, with a reasonable amount of effort, make such 
     improvements or remedies as may be necessary to remove its 
     designation as troubled within 12 months.

     SEC. 440. TREATMENT OF TROUBLED PHA'S.

       (a) Effect of Troubled Status on CHAS.--The comprehensive 
     housing affordability strategy (or any consolidated plan 
     incorporating such strategy) for the State or unit of general 
     local government in which any troubled public housing agency 
     is located shall not be considered to comply with the 
     requirements under section 105 of the Cranston-Gonzalez 
     National Affordable Housing Act unless such plan includes a 
     description of the manner in which the State or unit will 
     assist such troubled agency in improving its operations to 
     remove such designation.
       (b) Definition.--For purposes of this section, the term 
     ``troubled public housing agency'' means a public housing 
     agency that--
       (1) upon the date of the enactment of this Act, is 
     designated under section 6(j)(2) of the United States Housing 
     Act of 1937 (as in effect immediately before the enactment of 
     this Act) as a troubled public housing agency; and
       (2) is not a chronically troubled public housing agency, as 
     such term is defined in section 439(b) of this Act.

     SEC. 441. MAINTENANCE OF AND ACCESS TO RECORDS.

       (a) Keeping of Records.--Each local housing and management 
     authority shall keep such records as may be reasonably 
     necessary to disclose the amount and the disposition by the 
     authority of the proceeds of assistance received pursuant to 
     this Act and to ensure compliance with the requirements of 
     this Act.
       (b) Access to Documents.--The Secretary, the Inspector 
     General for the Department of Housing and Urban Development, 
     and the Comptroller General of the United States shall each 
     have access for the purpose of audit and examination 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.

     SEC. 442. ANNUAL REPORTS REGARDING TROUBLED LHMA'S.

       The Secretary shall submit a report to the Congress 
     annually, as a part of the report of the Secretary under 
     section 8 of the Department of Housing and Urban Development 
     Act, that--
       (1) identifies the local housing and management authorities 
     that are designated as troubled or dysfunctional under 
     section 431(a)(2) and the reasons for such designation;
       (2) identifies the local housing and management authorities 
     that have lost accreditation pursuant to section 433; and
       (3) describes any actions that have been taken in 
     accordance with sections 433, 434, 435, 436, and 438.

     SEC. 443. APPLICABILITY TO RESIDENT MANAGEMENT CORPORATIONS.

       The Secretary shall apply the provisions of this subtitle 
     to resident management corporations in the same manner as 
     applied to local housing and management authorities.
               TITLE V--REPEALS AND CONFORMING AMENDMENTS

     SEC. 501. REPEALS.

       (a) In General.--The following provisions of law are hereby 
     repealed:
       (1) United states housing act of 1937.--The United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.).
       (2) Assisted housing allocation.--Section 213 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     1439).
       (3) Public housing rent waivers for police.--Section 519 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437a-1).
       (4) Occupancy preferences and income mix for new 
     construction and substantial rehabilitation projects.--
     Subsection (c) of section 545, and section 555, of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437f note).
       (5) Treatment of certificate and voucher holders.--
     Subsection (c) of section 183 of the Housing and Community 
     Development Act of 1987 (42 U.S.C. 1437f note).
       (6) Excessive rent burden data.--Subsection (b) of section 
     550 of the Cranston-Gonzalez National Affordable Housing Act 
     (42 U.S.C. 1437f note).
       (7) Section 8 disaster relief.--Sections 931 and 932 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437c note).
       (8) Moving to opportunity for fair housing.--Section 152 of 
     the Housing and Community Development Act of 1992 (42 U.S.C. 
     1437f note).
       (9) Report regarding fair housing objectives.--Section 153 
     of the Housing and Community Development Act of 1992 (42 
     U.S.C. 1437f note).
       (10) Section 8 community investment demonstration.--Section 
     6 of the HUD Demonstration Act of 1993 (42 U.S.C. 1437f 
     note).
       (11) Special projects for elderly or handicapped 
     families.--Section 209 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 1438).
       (12) Access to pha books.--Section 816 of the Housing Act 
     of 1954 (42 U.S.C. 1435).
       (13) Miscellaneous provisions.--Subsections (b)(1), (c), 
     and (d) of section 326 of the Housing and Community 
     Development Amendments of 1981 (Public Law 97-35, 95 Stat. 
     406; 42 U.S.C. 1437f note).
       (14) Payment for development managers.--Section 329A of the 
     Housing and Community Development Amendments of 1981 (42 
     U.S.C. 1437j-1).
       (15) Purchase of pha obligations.--Section 329E of the 
     Housing and Community Development Amendments of 1981 (12 
     U.S.C. 2294a).
       (16) Procurement of insurance by pha's.--
       (A) In the item relating to ``administrative provisions'' 
     under the heading ``Management and Administration'' in title 
     II of the Departments of Veterans Affairs and Housing and 
     Urban Development, and Independent Agencies Appropriations 
     Act, 1991, the penultimate undesignated paragraph of such 
     item (Public Law 101-507; 104 Stat. 1369).
       (B) In the item relating to ``administrative provisions'' 
     under the heading ``Management and Administration'' in title 
     II of the Departments of Veterans Affairs and Housing and 
     Urban Development, and Independent Agencies Appropriations 
     Act, 1992, the 19th through 23d undesignated paragraphs of 
     such item (Public Law 102-139; 105 Stat. 758).
       (17) Public housing childhood development.--Section 222 of 
     the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note).
       (18) Indian housing childhood development.--Section 518 of 
     the Cranston-Gonzalez National Affordable Housing Act (12 
     U.S.C. 1701z-6 note).
       (19) Public housing comprehensive transition 
     demonstration.--Section 126 of the Housing and Community 
     Development Act of 1987 (42 U.S.C. 1437f note).
       (20) Public housing one-stop perinatal services 
     demonstration.--Section 521 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437t note).
       (21) Public housing mincs demonstration.--Section 522 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437f note).
       (22) Public housing energy efficiency demonstration.--
     Section 523 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437g note).
       (23) Omaha homeownership demonstration.--Section 132 of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 stat. 3712).
       (24) Public and assisted housing youth sports programs.--
     Section 520 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11903a).
       (b) Savings Provision.--The repeals made by subsection (a) 
     shall not affect any legally binding obligations entered into 
     before the date of the enactment of this Act. Any funds or 
     activities subject to a provision of law repealed by 
     subsection (a) shall continue to be governed by the provision 
     as in effect immediately before such repeal.

     SEC. 502. CONFORMING AND TECHNICAL PROVISIONS.

       (a) Allocation of Elderly Housing Amounts.--Section 202(l) 
     of the Housing Act of 1959 (12 U.S.C. 1701q(l)) is amended by 
     adding at the end the following new paragraph:
       ``(4) Consideration in allocating assistance.--Assistance 
     under this section shall be allocated in a manner that 
     ensures that the awards of the assistance are made for 
     projects of sufficient size to accommodate facilities for 
     supportive services appropriate to the needs of frail elderly 
     residents.''.
       (b) Eligibility for Assisted Housing.--
       (1) General.--Notwithstanding any other provision of law, 
     for purposes of determining eligibility for admission to 
     assisted housing, a person shall not be considered to have a 
     disability or a handicap solely because of the prior or 
     current illegal use of a controlled substance (as defined in 
     section 102 of the Controlled Substances Act) or solely by 
     reason of the prior or current use of alcohol.
       (2) Definition.--For purposes of this subsection, the term 
     ``assisted housing'' means housing designed primarily for 
     occupancy by elderly persons or persons with disabilities 
     that is assisted pursuant to this Act, the United States 
     Housing Act of 1937, section 221(d)(3) or 236 of the National 
     Housing Act, section 202 of the Housing Act of 1959, section 
     101 of the Housing and Urban Development Act of 1965, or 
     section

[[Page H4865]]

     811 of the Cranston-Gonzalez National Affordable Housing Act.
       (3) Continued occupancy.--This subsection may not be 
     construed to prohibit the continued occupancy of any person 
     who is a resident in assisted housing on the date of 
     enactment of this Act.
       (c) Amendment to Housing and Urban-Rural Recovery Act of 
     1983.--Section 227(d)(2) of the Housing and Urban-Rural 
     Recovery Act of 1983 (12 U.S.C. 1701r-1(d)(2)) is amended by 
     inserting ``the United States Housing Act of 1996,'' after 
     ``the United States Housing Act of 1937,''.
       (d) Review of Drug Elimination Program Contracts.--
       (1) Requirement.--Notwithstanding the repeal under section 
     501(a)(26), the Secretary of Housing and Urban Development 
     shall investigate all security contracts awarded by grantees 
     under the Public and Assisted Housing Drug Elimination Act of 
     1990 (42 U.S.C. 11901 et seq.) that are public housing 
     agencies that own or operate more than 4,500 public housing 
     dwelling units--
       (A) to determine whether the contractors under such 
     contracts have complied with all laws and regulations 
     regarding prohibition of discrimination in hiring practices;
       (B) to determine whether such contracts were awarded in 
     accordance with the applicable laws and regulations regarding 
     the award of such contracts;
       (C) to determine how many such contracts were awarded under 
     emergency contracting procedures;
       (D) to evaluate the effectiveness of the contracts; and
       (E) to provide a full accounting of all expenses under the 
     contracts.
       (2) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall complete the 
     investigation required under paragraph (1) and submit a 
     report to the Congress regarding the findings under the 
     investigation. With respect to each such contract, the report 
     shall (A) state whether the contract was made and is 
     operating, or was not made or is not operating, in full 
     compliance with applicable laws and regulations, and (B) for 
     each contract that the Secretary determines is in such 
     compliance in a personal certification of such compliance by 
     the Secretary of Housing and Urban Development.
       (3) Actions.--For each contract that is described in the 
     report under paragraph (2) as not made or not operating in 
     full compliance with applicable laws and regulation, the 
     Secretary of Housing and Urban Development shall promptly 
     take any actions available under law or regulation that are 
     necessary--
       (A) to bring such contract into compliance; or
       (B) to terminate the contract.
       (e) References.--Except as provided in section 271 and 
     501(b), any reference in any other Federal law, Executive 
     order, rule, regulation, or delegation of authority, or any 
     document of or pertaining to--
       (1) public housing or housing assisted under the United 
     States Housing Act of 1937 is deemed to refer to public 
     housing assisted under title II of this Act;
       (2) to assistance under section 8 of the United States 
     Housing Act of 1937 is deemed to refer to assistance under 
     title III of this Act; and
       (3) to assistance under the United States Housing Act of 
     1937 is deemed to refer to assistance under this Act.
       (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.

     SEC. 503. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG 
                   ELIMINATION ACT OF 1990.

       (a) Short Title, Purposes, and Authority to Make Grants.--
     Chapter 2 of subtitle C of title V of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11901 et seq.) is amended by striking the 
     chapter heading and all that follows through section 5123 and 
     inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

     ``SEC. 5121. SHORT TITLE.

       ``This chapter may be cited as the `Community Partnerships 
     Against Crime Act of 1996'.

     ``SEC. 5122. PURPOSES.

       ``The purposes of this chapter are to--
       ``(1) improve the quality of life for the vast majority of 
     law-abiding public housing residents by reducing the levels 
     of fear, violence, and crime in their communities;
       ``(2) broaden the scope of the Public and Assisted Housing 
     Drug Elimination Act of 1990 to apply to all types of crime, 
     and not simply crime that is drug-related; and
       ``(3) reduce crime and disorder in and around public 
     housing through the expansion of community-oriented policing 
     activities and problem solving.

     ``SEC. 5123. AUTHORITY TO MAKE GRANTS.

       ``The Secretary of Housing and Urban Development may make 
     grants in accordance with the provisions of this chapter for 
     use in eliminating crime in and around public housing and 
     other federally assisted low-income housing projects to (1) 
     local housing and management authorities, and (2) private, 
     for-profit and nonprofit owners of federally assisted low-
     income housing.''.
       (b) Eligible Activities.--
       (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11903(a)) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and around'' after ``used in'';
       (B) in paragraph (3), by inserting before the semicolon the 
     following: ``, including fencing, lighting, locking, and 
     surveillance systems'';
       (C) in paragraph (4), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) to investigate crime; and'';
       (D) in paragraph (6)--
       (i) by striking ``in and around public or other federally 
     assisted low-income housing projects''; and
       (ii) by striking ``and'' after the semicolon; and
       (E) by striking paragraph (7) and inserting the following 
     new paragraphs:
       ``(7) providing funding to nonprofit public housing 
     resident management corporations and resident councils to 
     develop security and crime prevention programs involving site 
     residents;
       ``(8) the employment or utilization of one or more 
     individuals, including law enforcement officers, made 
     available by contract or other cooperative arrangement with 
     State or local law enforcement agencies, to engage in 
     community- and problem-oriented policing involving 
     interaction with members of the community in proactive crime 
     control and prevention activities;
       ``(9) programs and activities for or involving youth, 
     including training, education, recreation and sports, career 
     planning, and entrepreneurship and employment activities and 
     after school and cultural programs; and
       ``(10) service programs for residents that address the 
     contributing factors of crime, including programs for job 
     training, education, drug and alcohol treatment, and other 
     appropriate social services.''.
       (2) Other lhma-owned housing.--Section 5124(b) of the Anti-
     Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``drug-related crime in housing owned by 
     public housing agencies'' and inserting ``crime in and around 
     housing owned by local housing and management authorities''; 
     and
       (ii) by striking ``paragraphs (1) through (7)'' and 
     inserting ``paragraphs (1) through (10)''; and
       (B) in paragraph (2)--
       (i) by striking ``public housing agency'' and inserting 
     ``local housing and management authority''; and
       (ii) by striking ``drug-related'' and inserting 
     ``criminal''.
       (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11904) is amended to read as follows:

     ``SEC. 5125. GRANT PROCEDURES.

       ``(a) LHMA's With 250 or More Units.--
       ``(1) Grants.--In each fiscal year, the Secretary shall 
     make a grant under this chapter from any amounts available 
     under section 5131(b)(1) for the fiscal year to each of the 
     following local housing and management authorities:
       ``(A) New applicants.--Each local housing and management 
     authority that owns or operates 250 or more public housing 
     dwelling units and has--
       ``(i) submitted an application to the Secretary for a grant 
     for such fiscal year, which includes a 5-year crime 
     deterrence and reduction plan under paragraph (2); and
       ``(ii) had such application and plan approved by the 
     Secretary.
       ``(B) Renewals.--Each local housing and management 
     authority that owns or operates

[[Page H4866]]

     250 or more public housing dwelling units and for which--
       ``(i) a grant was made under this chapter for the preceding 
     Federal fiscal year;
       ``(ii) the term of the 5-year crime deterrence and 
     reduction plan applicable to such grant includes the fiscal 
     year for which the grant under this subsection is to be made; 
     and
       ``(iii) the Secretary has determined, pursuant to a 
     performance review under paragraph (4), that during the 
     preceding fiscal year the agency has substantially fulfilled 
     the requirements under subparagraphs (A) and (B) of paragraph 
     (4).
       ``(2) 5-year crime deterrence and reduction plan.--Each 
     application for a grant under this subsection shall contain a 
     5-year crime deterrence and reduction plan. The plan shall be 
     developed with the participation of residents and appropriate 
     law enforcement officials. The plan shall describe, for the 
     local housing and management authority submitting the plan--
       ``(A) the nature of the crime problem in public housing 
     owned or operated by the local housing and management 
     authority;
       ``(B) the building or buildings of the local housing and 
     management authority affected by the crime problem;
       ``(C) the impact of the crime problem on residents of such 
     building or buildings; and
       ``(D) the actions to be taken during the term of the plan 
     to reduce and deter such crime, which shall include actions 
     involving residents, law enforcement, and service providers.

     The term of a plan shall be the period consisting of 5 
     consecutive fiscal years, which begins with the first fiscal 
     year for which funding under this chapter is provided to 
     carry out the plan.
       ``(3) Amount.--In any fiscal year, the amount of the grant 
     for a local housing and management authority receiving a 
     grant pursuant to paragraph (1) shall be the amount that 
     bears the same ratio to the total amount made available under 
     section 5131(b)(1) as the total number of public dwelling 
     units owned or operated by such authority bears to the total 
     number of dwelling units owned or operated by all local 
     housing and management authorities that own or operate 250 or 
     more public housing dwelling units that are approved for such 
     fiscal year.
       ``(4) Performance review.--For each fiscal year, the 
     Secretary shall conduct a performance review of the 
     activities carried out by each local housing and management 
     authority receiving a grant pursuant to this subsection to 
     determine whether the agency--
       ``(A) has carried out such activities in a timely manner 
     and in accordance with its 5-year crime deterrence and 
     reduction plan; and
       ``(B) has a continuing capacity to carry out such plan in a 
     timely manner.
       ``(5) Submission of applications.--The Secretary shall 
     establish such deadlines and requirements for submission of 
     applications under this subsection.
       ``(6) Review and determination.--The Secretary shall review 
     each application submitted under this subsection upon 
     submission and shall approve the application unless the 
     application and the 5-year crime deterrence and reduction 
     plan are inconsistent with the purposes of this chapter or 
     any requirements established by the Secretary or the 
     information in the application or plan is not substantially 
     complete. Upon approving or determining not to approve an 
     application and plan submitted under this subsection, the 
     Secretary shall notify the local housing and management 
     authority submitting the application and plan of such 
     approval or disapproval.
       ``(7) Disapproval of applications.--If the Secretary 
     notifies an authority that the application and plan of the 
     authority is not approved, not later than the expiration of 
     the 15-day period beginning upon such notice of disapproval, 
     the Secretary shall also notify the authority, in writing, of 
     the reasons for the disapproval, the actions that the 
     authority could take to comply with the criteria for 
     approval, and the deadlines for such actions.
       ``(8) Failure to approve or disapprove.--If the Secretary 
     fails to notify an authority of approval or disapproval of an 
     application and plan submitted under this subsection before 
     the expiration of the 60-day period beginning upon the 
     submission of the plan or fails to provide notice under 
     paragraph (7) within the 15-day period under such paragraph 
     to an authority whose application has been disapproved, the 
     application and plan shall be considered to have been 
     approved for purposes of this section.
       ``(b) LHMA's With Fewer Than 250 Units and Owners of 
     Federally Assisted Low-Income Housing.--
       ``(1) Applications and plans.--To be eligible to receive a 
     grant under this chapter, a local housing and management 
     authority that owns or operates fewer than 250 public housing 
     dwelling units or an owner of federally assisted low-income 
     housing shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such additional 
     information as the Secretary may require. The application 
     shall include a plan for addressing the problem of crime in 
     and around the housing for which the application is 
     submitted, describing in detail activities to be conducted 
     during the fiscal year for which the grant is requested.
       ``(2) Grants for lhma's with fewer than 250 units.--In each 
     fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(2), make grants under this 
     chapter to local housing and management authorities that own 
     or operate fewer than 250 public housing dwelling units and 
     have submitted applications under paragraph (1) that the 
     Secretary has approved pursuant to the criteria under 
     paragraph (4).
       ``(3) Grants for federally assisted low-income housing.--In 
     each fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(3), make grants under this 
     chapter to owners of federally assisted low-income housing 
     that have submitted applications under paragraph (1) that the 
     Secretary has approved pursuant to the criteria under 
     paragraphs (4) and (5).
       ``(4) Criteria for approval of applications.--The Secretary 
     shall determine whether to approve each application under 
     this subsection on the basis of--
       ``(A) the extent of the crime problem in and around the 
     housing for which the application is made;
       ``(B) the quality of the plan to address the crime problem 
     in the housing for which the application is made;
       ``(C) the capability of the applicant to carry out the 
     plan; and
       ``(D) the extent to which the tenants of the housing, the 
     local government, local community-based nonprofit 
     organizations, local tenant organizations representing 
     residents of neighboring projects that are owned or assisted 
     by the Secretary, and the local community support and 
     participate in the design and implementation of the 
     activities proposed to be funded under the application.

     In each fiscal year, the Secretary may give preference to 
     applications under this subsection for housing made by 
     applicants who received a grant for such housing for the 
     preceding fiscal year under this subsection or under the 
     provisions of this chapter as in effect immediately before 
     the date of the enactment of the United States Housing Act of 
     1996.
       ``(5) Additional criteria for federally assisted low-income 
     housing.--In addition to the selection criteria under 
     paragraph (4), the Secretary may establish other criteria for 
     evaluating applications submitted by owners of federally 
     assisted low-income housing, except that such additional 
     criteria shall be designed only to reflect--
       ``(A) relevant differences between the financial resources 
     and other characteristics of local housing and management 
     authorities and owners of federally assisted low-income 
     housing; or
       ``(B) relevant differences between the problem of crime in 
     public housing administered by such authorities and the 
     problem of crime in federally assisted low-income 
     housing.''.
       (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11905) is amended--
       (1) by striking paragraphs (1) and (2);
       (2) in paragraph (4)(A), by striking ``section'' before 
     ``221(d)(4)'';
       (3) by redesignating paragraphs (3) and (4) (as so amended) 
     as paragraphs (1) and (2), respectively; and
       (4) by adding at the end the following new paragraph:
       ``(3) Local housing and management authority.--The term 
     `local housing and management authority' has the meaning 
     given the term in title I of the United States Housing Act of 
     1996.''.
       (e) Implementation.--Section 5127 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11906) is amended by striking 
     ``Cranston-Gonzalez National Affordable Housing Act'' and 
     inserting ``United States Housing Act of 1996''.
       (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11907) is amended--
       (1) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (2) by striking ``described in section 5125(a)'' and 
     inserting ``for the grantee submitted under subsection (a) or 
     (b) of section 5125, as applicable''.
       (g) Funding and Program Sunset.--Chapter 2 of subtitle C of 
     title V of the Anti-Drug Abuse Act of 1988 is amended by 
     striking section 5130 (42 U.S.C. 11909) and inserting the 
     following new sections:

     ``SEC. 5130. FUNDING.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this chapter such 
     sums as may be necessary for fiscal years 1997 and 1998.
       ``(b) Allocation.--Of any amounts available, or that the 
     Secretary is authorized to use, to carry out this chapter in 
     any fiscal year--
       ``(1) 85 percent shall be available only for assistance 
     pursuant to section 5125(a) to local housing and management 
     authorities that own or operate 250 or more public housing 
     dwelling units;
       ``(2) 10 percent shall be available only for assistance 
     pursuant to section 5125(b)(2) to local housing and 
     management authorities that own or operate fewer than 250 
     public housing dwelling units; and
       ``(3) 5 percent shall be available only for assistance to 
     federally assisted low-income housing pursuant to section 
     5125(b)(3).''.
       (h) Conforming Amendments.--The table of contents in 
     section 5001 of the Anti-Drug Abuse Act of 1988 (Public Law 
     100-690; 102 Stat. 4295) is amended--
       (1) by striking the item relating to the heading for 
     chapter 2 of subtitle C of title V and inserting the 
     following:

          ``Chapter 2--Community Partnerships Against Crime'';

       (2) by striking the item relating to section 5122 and 
     inserting the following new item:

``Sec. 5122. Purposes.'';

       (3) by striking the item relating to section 5125 and 
     inserting the following new item:

``Sec. 5125. Grant procedures.'';

     and
       (4) by striking the item relating to section 5130 and 
     inserting the following new item:

``Sec. 5130. Funding.''.

       (i) Treatment of NOFA.--The cap limiting assistance under 
     the Notice of Funding Availability issued by the Department 
     of Housing and

[[Page H4867]]

     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).

     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.
       ``(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)

[[Page H4868]]

     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 the first year of the 
     demonstration, the Secretary shall select 100 local housing 
     and management authorities to participate. In each of the 
     next 2 years 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 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 emonstration. 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

[[Page H4869]]

     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 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).''.

     SEC. 515. 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.

     SEC. 516. LIMITATION ON EXTENT OF USE OF LOAN GUARANTEES FOR 
                   HOUSING PURPOSES.

       Section 108 of the Housing and Community Development Act of 
     1974 (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 50 percent of such 
     amounts obtained by the eligible public entity or agency.''.

     SEC. 517. CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF 
                   LITIGATION.

       In negotiating any settlement of, or consent decree for, 
     any litigation regarding public housing or rental assistance 
     (under title III of this Act or the United States Housing Act 
     of 1937, as in effect before the enactment of this Act) that 
     involves the Secretary and any local housing and management 
     authority or any unit of general local government, the 
     Secretary shall consult with any units of general local 
     government and local housing and management authorities 
     having jurisdictions that are adjacent to the jurisdiction of 
     the local housing and management authority involved.

   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;

[[Page H4870]]

       (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.

     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 432.
       (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).
             TITLE VII--NATIVE AMERICAN HOUSING ASSISTANCE

     SECTION 701. SHORT TITLE.

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

     SEC. 702. 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

[[Page H4871]]

     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. 703. 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. 704. 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 712.
       (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:
       (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. 711. 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 712; and
       (B) the plan has been determined under section 713 to 
     comply with the requirements of section 712.
       (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 741 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 741 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 
     713 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 712.
       (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

[[Page H4872]]

     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. 712. 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 721(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 721(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 723 
     relating to low-income housing owned or 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

[[Page H4873]]

     be established by regulation, pursuant to section 716.

     SEC. 713. 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 712. 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 712 
     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 712, 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 
     712.
       (c) Standards for Determination of Noncompliance.--The 
     Secretary may determine that a plan does not comply with the 
     requirements under section 712 only if--
       (1) the plan is not consistent with the national objectives 
     under section 721(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 712.
       (e) Updates to Plan.--After a plan under section 712 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 712(b) or the 1-year 
     period under section 712(c)) by submitting only such 
     information regarding such changes as may be necessary to 
     update the plan previously submitted.

     SEC. 714. 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)(1) In General.--Any contract for the construction of 
     affordable housing with 12 or more units assisted with grant 
     amounts made available under this Act shall contain a 
     provision requiring that not less than the wages prevailing 
     in the locality, as predetermined by the Secretary of Labor 
     pursuant to the Davis-Bacon Act (40 U.S.C. 276a--276a-5), 
     shall be paid to all laborers and mechanics employed in the 
     development of affordable housing involved, and recipients 
     shall require certification as to the compliance with the 
     provisions of this section prior to making any payment under 
     such contract.
       (2) Exceptions.--Subsection (a) shall not apply if the 
     individual receives no compensation or is paid expenses, 
     reasonable benefits, or a nominal fee to perform the services 
     for which the individual volunteered and such persons are not 
     otherwise employed at any time in the construction work.
       (3) Waiver.--The Secretary may waive the provisions of this 
     subsection.

     SEC. 715. 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. 716. 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 717(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 717(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. 717. 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.

[[Page H4874]]

       (2) Local housing plan.--Notwithstanding section 713 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. 718. 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. 721. 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 722(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, 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. 722. 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. 723. 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 722(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 116, 
     section 261 shall apply to the demolition or disposition of 
     Indian housing referred to in subsection (a).

     SEC. 724. TYPES OF INVESTMENTS.

       (a) In General.--Subject to section 723 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. 725. 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. 726. 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.

[[Page H4875]]

     SEC. 727. 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. 728. 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 725(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 
     751(a)(2)) or require repayment to the Secretary of an amount 
     equal to such grant amounts.

     SEC. 729. 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. 741. 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 742, among Indian tribes that comply with 
     the requirements under this title for a grant under this 
     title.

     SEC. 742. ALLOCATION FORMULA.

       The Secretary shall, by regulations issued in the manner 
     provided under section 716, establish a formula to provide 
     for allocating 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. 751. 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 
     752(b), provide a replacement tribally designated housing 
     entity for the recipient, under section 752.

     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. 752. 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--

[[Page H4876]]

       (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. 753. 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 754 and 
     made available to the public.

     SEC. 754. 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. 755. 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 754 of 
     the recipient are accurate.

     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. 756. 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. 757. 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. 761. 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 723(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. 762. 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. 763. 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. 764. 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. 765. 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

[[Page H4877]]

       (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. 766. SAVINGS PROVISION.

       Except as provided in sections 761 and 762, 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. 767. EFFECTIVE DATE.

       Sections 761, 762, and 766 shall take effect on the date of 
     the enactment of this title.
     Subtitle F--Loan Guarantees for Affordable Housing Activities

     SEC. 771. 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 722.
       (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 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 772(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. 772. 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 723(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. 773. 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. 774. 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. 775. 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. 776. 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. 777. EFFECTIVE DATE.

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

     SEC. 781. 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

[[Page H4878]]

     housing plan has been submitted and approved pursuant to 
     sections 712 and 713 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
       (2) 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 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.''.
       (i) Principal Obligation Amounts.--Section 184(b)(5)(C) of 
     the Housing and Community Development Act of 1992 is amended 
     by striking clause (i) and inserting the following new 
     clause:
       ``(i) 97.75 percent of the appraised value of the property 
     as of the date the loan is accepted for guarantee (or 98.75 
     percent if the value of the property is $50,000 or less); 
     and''.
       (j) Availability of Amounts.--
       (1) Requirement of appropriations.--Section 184(i)(5) of 
     the Housing and Community Development Act of 1992 is amended 
     by striking subparagraph (A) and inserting the following new 
     subparagraph:
       ``(A) Requirement of appropriations.--The authority of the 
     Secretary to enter into commitments to guarantee loans under 
     this section shall be effective for any fiscal year to the 
     extent or in such amounts as are or have been provided in 
     appropriations Acts, without regard to the fiscal year for 
     which such amounts were appropriated.''.
       (2) Costs.--Section 184(i)(5)(B) of the Housing and 
     Community Development Act of 1992 is amended by adding at the 
     end the following new sentence: ``Any amounts appropriated 
     pursuant to this subparagraph shall remain available until 
     expended.''.
       (k) GNMA Authority.--The first sentence of section 
     306(g)(1) of the Federal National Mortgage Association 
     Charter Act (12 U.S.C. 1721(g)(1)) is amended by inserting 
     before the period at the end the following: ``; or guaranteed 
     under section 184 of the Housing and Community Development 
     Act of 1992''.

     SEC. 782. 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. 783. 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. 784. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle 
     shall take effect upon the enactment of this title.
   TITLE VIII--NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY 
                     STANDARDS CONSENSUS COMMITTEE

     SEC. 801. 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. 802. 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. 803. DEFINITIONS.

       (a) In General.--Section 703 (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. 804. 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,

[[Page H4879]]

     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 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. 805. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY 
                   COUNCIL.

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

     SEC. 806. 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. 807. INSPECTION FEES.

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

[[Page H4880]]

       ``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. 808. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

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

     SEC. 809. 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.

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