[Congressional Record Volume 143, Number 137 (Monday, October 6, 1997)]
[House]
[Pages H8323-H8361]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 2158, DEPARTMENTS OF VETERANS AFFAIRS AND 
HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS 
                               ACT, 1998

  Mr. LIVINGSTON submitted the following conference report and 
statement on the bill (H.R. 2158) making appropriations for the 
Departments of Veterans Affairs and Housing and Urban Development, and 
for sundry independent agencies, commissions, corporations, and offices 
for the fiscal year ending September 30, 1998, and for other purposes:

                  Conference Report (H. Rept. 105-297)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2158) making appropriations for the Departments of Veterans 
     Affairs and Housing and Urban Development, and for sundry 
     independent agencies, commissions, corporations, and offices 
     for the fiscal year ending September 30, 1998, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the Departments 
     of Veterans Affairs and Housing and Urban Development, and 
     for sundry independent agencies, commissions, corporations, 
     and offices for the fiscal year ending September 30, 1998, 
     and for other purposes, namely:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration


                       compensation and pensions

                     (including transfers of funds)

       For the payment of compensation benefits to or on behalf of 
     veterans and a pilot program for disability examinations as 
     authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 
     53, 55, and 61); pension benefits to or on behalf of veterans 
     as authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 
     61; 92 Stat. 2508); and burial benefits, emergency and other 
     officers' retirement pay, adjusted-service credits and 
     certificates, payment of premiums due on commercial life 
     insurance policies guaranteed under the provisions of Article 
     IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as 
     amended, and for other benefits as authorized by law (38 
     U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, 
     and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 
     735; 76 Stat. 1198); $19,932,997,000, to remain available 
     until expended: Provided, That not to exceed $26,380,000 of 
     the amount appropriated shall be reimbursed to ``General 
     operating expenses'' and ``Medical care'' for necessary 
     expenses in implementing those provisions authorized in the 
     Omnibus Budget Reconciliation Act of 1990, and in the 
     Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51, 53, 
     and 55), the funding source for which is specifically 
     provided as the ``Compensation and pensions'' appropriation: 
     Provided further, That such sums as may be earned on an 
     actual qualifying patient basis, shall be reimbursed to 
     ``Medical facilities revolving fund'' to augment the funding 
     of individual medical facilities for nursing home care 
     provided to pensioners as authorized by the Veterans' 
     Benefits Act of 1992 (38 U.S.C. chapter 55).


                         readjustment benefits

       For the payment of readjustment and rehabilitation benefits 
     to or on behalf of veterans as authorized by 38 U.S.C. 
     chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, 
     $1,366,000,000, to remain available until expended: Provided, 
     That funds shall be available to pay any court order, court 
     award or any compromise settlement arising from litigation 
     involving the vocational training program authorized by 
     section 18 of Public Law 98-77, as amended.


                   veterans insurance and indemnities

       For military and naval insurance, national service life 
     insurance, servicemen's indemnities, service-disabled 
     veterans insurance, and veterans mortgage life insurance as 
     authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72 Stat. 
     487, $51,360,000, to remain available until expended.


         veterans housing benefit program fund program account

                     (including transfer of funds)

       For the cost of direct and guaranteed loans, such sums as 
     may be necessary to carry out the program, as authorized by 
     38 U.S.C. chapter 37, as amended: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That during fiscal year 
     1998, within the resources available, not to exceed $300,000 
     in gross obligations for direct loans are authorized for 
     specially adapted housing loans: Provided further, That 
     during 1998 any moneys that would be otherwise deposited into 
     or paid from the Loan Guaranty Revolving Fund, the Guaranty 
     and Indemnity Fund, or the Direct Loan Revolving Fund shall 
     be deposited into or paid from the Veterans Housing Benefit 
     Program Fund: Provided further, That any balances in the Loan 
     Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or 
     the Direct Loan Revolving Fund on the effective date of this 
     Act may be transferred to and merged with the Veterans 
     Housing Benefit Program Fund.
       In addition, for administrative expenses to carry out the 
     direct and guaranteed loan programs, $160,437,000, which may 
     be transferred to and merged with the appropriation for 
     ``General operating expenses''.


                  education loan fund program account

                     (including transfer of funds)

       For the cost of direct loans, $1,000, as authorized by 38 
     U.S.C. 3698, as amended: Provided, That such costs, including 
     the cost of modifying such loans, shall be as defined in 
     section 502 of the Congressional Budget Act of 1974, as 
     amended: Provided further, That these funds are available to 
     subsidize gross obligations for the principal amount of 
     direct loans not to exceed $3,000.
       In addition, for administrative expenses necessary to carry 
     out the direct loan program, $200,000, which may be 
     transferred to and merged with the appropriation for 
     ``General operating expenses''.


            vocational rehabilitation loans program account

                     (including transfer of funds)

       For the cost of direct loans, $44,000, as authorized by 38 
     U.S.C. chapter 31, as amended: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans not to exceed $2,278,000.
       In addition, for administrative expenses necessary to carry 
     out the direct loan program, $388,000, which may be 
     transferred to and merged with the appropriation for 
     ``General operating expenses''.


          Native American Veteran Housing Loan Program Account

                     (including transfer of funds)

       For administrative expenses to carry out the direct loan 
     program authorized by 38 U.S.C. chapter 37, subchapter V, as 
     amended, $515,000, which may be transferred to and merged 
     with the appropriation for ``General operating expenses''.

                     Veterans Health Administration


                              medical care

                     (including transfer of funds)

       For necessary expenses for the maintenance and operation of 
     hospitals, nursing homes, and domiciliary facilities; for 
     furnishing, as authorized by law, inpatient and outpatient 
     care and treatment to beneficiaries of the Department of 
     Veterans Affairs, including care and treatment in facilities 
     not under the jurisdiction of the Department; and furnishing 
     recreational facilities, supplies, and equipment; funeral, 
     burial, and other expenses incidental thereto for 
     beneficiaries receiving care in the Department; 
     administrative expenses in support of planning, design, 
     project management, real property acquisition and 
     disposition, construction and renovation of any facility 
     under the jurisdiction or for the use of the Department; 
     oversight, engineering and architectural activities not 
     charged to project cost; repairing, altering, improving or 
     providing facilities in the several hospitals and homes 
     under the jurisdiction of the Department, not otherwise 
     provided for, either by contract or by the hire of 
     temporary employees and purchase of materials; uniforms or 
     allowances

[[Page H8324]]

     therefor, as authorized by 5 U.S.C. 5901-5902; aid to 
     State homes as authorized by 38 U.S.C. 1741; 
     administrative and legal expenses of the Department for 
     collecting and recovering amounts owed the Department as 
     authorized under 38 U.S.C. chapter 17, and the Federal 
     Medical Care Recovery Act, 42 U.S.C. 2651 et seq.; and not 
     to exceed $8,000,000 to fund cost comparison studies as 
     referred to in 38 U.S.C. 8110(a)(5); $17,057,396,000, plus 
     reimbursements: Provided, That of the funds made available 
     under this heading, $570,000,000 is for the equipment and 
     land and structures object classifications only, which 
     amount shall not become available for obligation until 
     August 1, 1998, and shall remain available until September 
     30, 1999: Provided further, That of the amount made 
     available under this heading, not to exceed $5,000,000 
     shall be for a study on the cost-effectiveness of 
     contracting with local hospitals in East Central Florida 
     for the provision of non-emergent inpatient health care 
     needs of veterans.
       In addition, in conformance with Public Law 105-33 
     establishing the Department of Veterans Affairs Medical Care 
     Collections Fund, such sums as may be deposited to such Fund 
     pursuant to 38 U.S.C. 1729A may be transferred to this 
     account, to remain available until expended for the purposes 
     of this account.


                    medical and prosthetic research

       For necessary expenses in carrying out programs of medical 
     and prosthetic research and development as authorized by 38 
     U.S.C. chapter 73, to remain available until September 30, 
     1999, $272,000,000, plus reimbursements.


      medical administration and miscellaneous operating expenses

       For necessary expenses in the administration of the 
     medical, hospital, nursing home, domiciliary, construction, 
     supply, and research activities, as authorized by law; 
     administrative expenses in support of planning, design, 
     project management, architectural, engineering, real property 
     acquisition and disposition, construction and renovation of 
     any facility under the jurisdiction or for the use of the 
     Department of Veterans Affairs, including site acquisition; 
     engineering and architectural activities not charged to 
     project cost; and research and development in building 
     construction technology; $59,860,000, plus reimbursements.

                   general post fund, national homes


                     (including transfer of funds)

       For the cost of direct loans, $7,000, as authorized by 
     Public Law 102-54, section 8, which shall be transferred from 
     the ``General post fund'': Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans not to exceed $70,000.
       In addition, for administrative expenses to carry out the 
     direct loan programs, $54,000, which shall be transferred 
     from the ``General post fund'', as authorized by Public Law 
     102-54, section 8.

                      Departmental Administration


                       general operating expenses

       For necessary operating expenses of the Department of 
     Veterans Affairs, not otherwise provided for, including 
     uniforms or allowances therefor; not to exceed $25,000 for 
     official reception and representation expenses; hire of 
     passenger motor vehicles; and reimbursement of the General 
     Services Administration for security guard services, and the 
     Department of Defense for the cost of overseas employee mail; 
     $786,135,000: Provided, That funds under this heading shall 
     be available to administer the Service Members Occupational 
     Conversion and Training Act: Provided further, That none 
     of the funds made available under this heading may be used 
     for the relocation of the loan guaranty divisions of the 
     Department of Veterans Affairs Regional Office in St. 
     Petersburg, Florida to the Department of Veterans Affairs 
     Regional Office in Atlanta, Georgia.


                        national cemetery system

       For necessary expenses for the maintenance and operation of 
     the National Cemetery System, not otherwise provided for, 
     including uniforms or allowances therefor; cemeterial 
     expenses as authorized by law; purchase of three passenger 
     motor vehicles for use in cemeterial operations; and hire of 
     passenger motor vehicles, $84,183,000.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $31,013,000.


                      Construction, Major Projects

       For constructing, altering, extending and improving any of 
     the facilities under the jurisdiction or for the use of the 
     Department of Veterans Affairs, or for any of the purposes 
     set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 
     8108, 8109, 8110, and 8122 of title 38, United States Code, 
     including planning, architectural and engineering services, 
     maintenance or guarantee period services costs associated 
     with equipment guarantees provided under the project, 
     services of claims analysts, offsite utility and storm 
     drainage system construction costs, and site acquisition, 
     where the estimated cost of a project is $4,000,000 or more 
     or where funds for a project were made available in a 
     previous major project appropriation, $177,900,000, to remain 
     available until expended: Provided, That the $32,100,000 
     provided under this heading in Public Law 104-204 for the 
     replacement hospital at Travis Air Force Base, Fairfield, CA, 
     shall not be obligated for that purpose but shall be 
     available for any project approved by the Congress in the 
     budgetary process: Provided further, That except for advance 
     planning of projects funded through the advance planning fund 
     and the design of projects funded through the design fund, 
     none of these funds shall be used for any project which has 
     not been considered and approved by the Congress in the 
     budgetary process: Provided further, That funds provided in 
     this appropriation for fiscal year 1998, for each approved 
     project shall be obligated (1) by the awarding of a 
     construction documents contract by September 30, 1998, and 
     (2) by the awarding of a construction contract by September 
     30, 1999: Provided further, That the Secretary shall promptly 
     report in writing to the Committees on Appropriations any 
     approved major construction project in which obligations are 
     not incurred within the time limitations established above: 
     Provided further, That no funds from any other account except 
     the ``Parking revolving fund'', may be obligated for 
     constructing, altering, extending, or improving a project 
     which was approved in the budget process and funded in this 
     account until one year after substantial completion and 
     beneficial occupancy by the Department of Veterans Affairs of 
     the project or any part thereof with respect to that part 
     only.


                      construction, minor projects

       For constructing, altering, extending, and improving any of 
     the facilities under the jurisdiction or for the use of the 
     Department of Veterans Affairs, including planning, 
     architectural and engineering services, maintenance or 
     guarantee period services costs associated with equipment 
     guarantees provided under the project, services of claims 
     analysts, offsite utility and storm drainage system 
     construction costs, and site acquisition, or for any of the 
     purposes set forth in sections 316, 2404, 2406, 8102, 8103, 
     8106, 8108, 8109, 8110, and 8122 of title 38, United States 
     Code, where the estimated cost of a project is less than 
     $4,000,000; $175,000,000, to remain available until expended, 
     along with unobligated balances of previous ``Construction, 
     minor projects'' appropriations which are hereby made 
     available for any project where the estimated cost is less 
     than $4,000,000: Provided, That funds in this account shall 
     be available for (1) repairs to any of the nonmedical 
     facilities under the jurisdiction or for the use of the 
     Department which are necessary because of loss or damage 
     caused by any natural disaster or catastrophe, and (2) 
     temporary measures necessary to prevent or to minimize 
     further loss by such causes.


                         parking revolving fund

       For the parking revolving fund as authorized by 38 U.S.C. 
     8109, income from fees collected, to remain available until 
     expended, which shall be available for all authorized 
     expenses except operations and maintenance costs, which will 
     be funded from ``Medical care''.


       grants for construction of state extended care facilities

       For grants to assist States to acquire or construct State 
     nursing home and domiciliary facilities and to remodel, 
     modify or alter existing hospital, nursing home and 
     domiciliary facilities in State homes, for furnishing care to 
     veterans as authorized by 38 U.S.C. 8131-8137, $80,000,000, 
     to remain available until expended.


        grants for the construction of state veteran cemeteries

       For grants to aid States in establishing, expanding, or 
     improving State veteran cemeteries as authorized by 38 U.S.C. 
     2408, $10,000,000, to remain available until expended.


                       administrative provisions

                     (including transfer of funds)

       Sec. 101. Any appropriation for fiscal year 1998 for 
     ``Compensation and pensions'', ``Readjustment benefits'', and 
     ``Veterans insurance and indemnities'' may be transferred to 
     any other of the mentioned appropriations.
       Sec. 102. Appropriations available to the Department of 
     Veterans Affairs for fiscal year 1998 for salaries and 
     expenses shall be available for services authorized by 5 
     U.S.C. 3109.
       Sec. 103. No appropriations in this Act for the Department 
     of Veterans Affairs (except the appropriations for 
     ``Construction, major projects'', ``Construction, minor 
     projects'', and the ``Parking revolving fund'') shall be 
     available for the purchase of any site for or toward the 
     construction of any new hospital or home.
       Sec. 104. No appropriations in this Act for the Department 
     of Veterans Affairs shall be available for hospitalization or 
     examination of any persons (except beneficiaries entitled 
     under the laws bestowing such benefits to veterans, and 
     persons receiving such treatment under 5 U.S.C. 7901-7904 or 
     42 U.S.C. 5141-5204), unless reimbursement of cost is made to 
     the ``Medical care'' account at such rates as may be fixed by 
     the Secretary of Veterans Affairs.
       Sec. 105. Appropriations available to the Department of 
     Veterans Affairs for fiscal year 1998 for ``Compensation and 
     pensions'', ``Readjustment benefits'', and ``Veterans 
     insurance and indemnities'' shall be available for payment of 
     prior year accrued obligations required to be recorded by law 
     against the corresponding prior year accounts within the last 
     quarter of fiscal year 1997.
       Sec. 106. Appropriations accounts available to the 
     Department of Veterans Affairs for fiscal year 1998 shall be 
     available to pay prior year obligations of corresponding 
     prior year appropriations accounts resulting from title X of 
     the Competitive Equality Banking Act, Public Law 100-86, 
     except that if such obligations are from trust fund accounts 
     they shall be payable from ``Compensation and pensions''.
       Sec. 107. Notwithstanding any other provision of law, 
     during fiscal year 1998, the Secretary of Veterans Affairs 
     shall, from the National Service Life Insurance Fund (38 
     U.S.C. 1920), the Veterans' Special Life Insurance Fund (38 
     U.S.C. 1923), and the United States Government Life Insurance 
     Fund (38 U.S.C. 1955), reimburse the ``General operating 
     expenses'' account for the cost of administration of the 
     insurance programs financed through those accounts: Provided, 
     That reimbursement shall be made only

[[Page H8325]]

     from the surplus earnings accumulated in an insurance program 
     in fiscal year 1998, that are available for dividends in 
     that program after claims have been paid and actuarially 
     determined reserves have been set aside: Provided further, 
     That if the cost of administration of an insurance program 
     exceeds the amount of surplus earnings accumulated in that 
     program, reimbursement shall be made only to the extent of 
     such surplus earnings: Provided further, That the 
     Secretary shall determine the cost of administration for 
     fiscal year 1998, which is properly allocable to the 
     provision of each insurance program and to the provision 
     of any total disability income insurance included in such 
     insurance program.
       Sec. 108. Section 214(l)(1)(D) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 
     220 of the Immigration and Nationality Technical Corrections 
     Act of 1994 and redesignated as subsection (l) by section 
     671(a)(3)(A) of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996) is amended by inserting before 
     the period at the end the following: ``, except that, in the 
     case of a request by the Department of Veterans Affairs, the 
     alien shall not be required to practice medicine in a 
     geographic area designated by the Secretary''.
       Sec. 109. In accordance with section 1557 of title 31, 
     United States Code, the following obligated balance shall be 
     exempt from subchapter IV of chapter 15 of such title and 
     shall remain available for expenditure without fiscal year 
     limitation: Funds obligated by the Department of Veterans 
     Affairs for lease number 757-084B-001-91 from funds made 
     available in the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 1993 (Public Law 102-389) under the 
     heading ``Medical care''.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                        housing certificate fund

                     (including transfers of funds)

       For activities and assistance to prevent the involuntary 
     displacement of low-income families, the elderly and the 
     disabled because of the loss of affordable housing stock, 
     expiration of subsidy contracts (other than contracts for 
     which amounts are provided under another heading in this Act) 
     or expiration of use restrictions, or other changes in 
     housing assistance arrangements, and for other purposes, 
     $9,373,000,000, to remain available until expended: Provided, 
     That of the total amount provided under this heading, 
     $8,180,000,000 shall be for assistance under the United 
     States Housing Act of 1937 (42 U.S.C. 1437) for use in 
     connection with expiring or terminating section 8 subsidy 
     contracts, for enhanced vouchers as provided under the 
     ``Preserving Existing Housing Investment'' account in the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1997, (Public Law 104-204), and contracts entered into 
     pursuant to section 441 of the Stewart B. McKinney Homeless 
     Assistance Act: Provided further, That the Secretary may 
     determine not to apply section 8(o)(6)(B) of the Act to 
     housing vouchers during fiscal year 1998: Provided further, 
     That of the total amount provided under this head, 
     $850,000,000 shall be for amendments to section 8 
     contracts other than contracts for projects developed 
     under section 202 of the Housing Act of 1959, as amended: 
     Provided further, That of the total amount provided under 
     this heading, $343,000,000 shall be for section 8 rental 
     assistance under the United States Housing Act of 1937 
     including assistance to relocate residents of properties 
     (i) that are owned by the Secretary and being disposed of 
     or (ii) that are discontinuing section 8 project-based 
     assistance; for the conversion of section 23 projects to 
     assistance under section 8; for funds to carry out the 
     family unification program; and for the relocation of 
     witnesses in connection with efforts to combat crime in 
     public and assisted housing pursuant to a request from a 
     law enforcement or prosecution agency: Provided further, 
     That of the total amount made available in the preceding 
     proviso, $40,000,000 shall be made available to nonelderly 
     disabled families affected by the designation of a public 
     housing development under section 7 of such Act, the 
     establishment of preferences in accordance with section 
     651 of the Housing and Community Development Act of 1992 
     (42 U.S.C. 1361l), or the restriction of occupancy to 
     elderly families in accordance with section 658 of such 
     Act, and to the extent the Secretary determines that such 
     amount is not needed to fund applications for such 
     affected families, to other nonelderly disabled families: 
     Provided further, That the amount made available under the 
     fifth proviso under the heading ``Prevention of Resident 
     Displacement'' in title II of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1997, Public Law 104-204, 
     shall also be made available to nonelderly disabled 
     families affected by the restriction of occupancy to 
     elderly families in accordance with section 658 of the 
     Housing and Community Development Act of 1992: Provided 
     further, That to the extent the Secretary determines that 
     the amount made available under the fifth proviso under 
     the heading ``Prevention of Resident Displacement'' in 
     title II of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997, Public Law 104-204, is not 
     needed to fund applications for affected families 
     described in the fifth proviso, or in the preceding 
     proviso under this heading in this Act, the amount not 
     needed shall be made available to other nonelderly 
     disabled families: Provided further, That all balances, as 
     of September 30, 1997, remaining in the ``Annual 
     Contributions for Assisted Housing'' account and the 
     ``Prevention of Resident Displacement'' account for use in 
     connection with expiring or terminating section 8 subsidy 
     contracts and for amendments to section 8 contracts other 
     than contracts for projects developed under section 202 of 
     the Housing Act of 1959, as amended, shall be transferred 
     to and merged with the amounts provided for those purposes 
     under this heading.


                 section 8 reserve preservation account

       The amounts recaptured during fiscal year 1998 that were 
     heretofore made available to public housing agencies for 
     tenant-based assistance under the section 8 existing housing 
     certificate and housing voucher programs from the Annual 
     Contributions for Assisted Housing account shall be collected 
     in the account under this heading, for use as provided for 
     under this heading, as set forth under the Annual 
     Contributions for Assisted Housing heading in chapter 11 of 
     Public Law 105-18, approved June 12, 1997.


               annual contributions for assisted housing

              (including rescission and transfer of funds)

       Notwithstanding any other provision of law, of the amounts 
     recaptured under this heading during fiscal year 1998 and 
     prior years, $550,000,000, heretofore maintained as section 8 
     reserves made available to housing agencies for tenant-based 
     assistance under the section 8 existing housing certificate 
     and housing voucher programs, are rescinded.
       All balances outstanding as of September 30, 1997, in the 
     Preserving Existing Housing Investment Account for the 
     Preservation program shall be transferred to and merged 
     with the amounts previously provided for those purposes 
     under this heading.


                      public housing capital fund

                     (including transfers of funds)

       For the Public Housing Capital Fund Program for 
     modernization of existing public housing projects as 
     authorized under section 14 of the United States Housing Act 
     of 1937, as amended (42 U.S.C. 1437), $2,500,000,000, to 
     remain available until exended: Provided, That of the total 
     amount, $30,000,000 shall be for carrying out activities 
     under section 6(j) of such Act and technical assistance for 
     the inspection of public housing units, contract expertise, 
     and training and technical assistance directly or indirectly, 
     under grants, contracts, or cooperative agreements, to assist 
     in the oversight and management of public housing (whether or 
     not the housing is being modernized with assistance under 
     this proviso) or tenant-based assistance, including, but not 
     limited to, an annual resident survey, data collection and 
     analysis, training and technical assistance by or to 
     officials and employees of the Department and of public 
     housing agencies and to residents in connection with the 
     public housing program and for lease adjustments to section 
     23 projects: Provided further, That of the amount available 
     under this heading, up to $5,000,000 shall be for the Tenant 
     Opportunity Program: Provided further, That all balances, as 
     of September 30, 1997, of funds heretofore provided (other 
     than for Indian families) for the development or acquisition 
     costs of public housing, for modernization of existing public 
     housing projects, for public housing amendments, for public 
     housing modernization and development technical assistance, 
     for lease adjustments under the section 23 program, and for 
     the Family Investment Centers program, shall be transferred 
     to and merged with amounts made available under this heading.


                     public housing operating fund

                     (including transfer of funds)

       For payments to public housing agencies for operating 
     subsidies for low-income housing projects as authorized by 
     section 9 of the United States Housing Act of 1937, as 
     amended (42 U.S.C. 1437g), $2,900,000,000, to remain 
     available until expended: Provided, That all balances 
     outstanding, as of September 30, 1997, of funds heretofore 
     provided (other than for Indian families) for payments to 
     public housing agencies for operating subsidies for low-
     income housing projects, shall be transferred to and merged 
     with amounts made available under this heading.


             drug elimination grants for low-income housing

                     (including transfer of funds)

       For grants to public housing agencies and tribally 
     designated housing entities for use in eliminating crime in 
     public housing projects authorized by 42 U.S.C. 11901-11908, 
     for grants for federally assisted low-income housing 
     authorized by 42 U.S.C. 11909, and for drug information 
     clearinghouse services authorized by 42 U.S.C. 11921-11925, 
     $310,000,000, to remain available until expended, of which 
     $10,000,000 shall be for grants, technical assistance, 
     contracts and other assistance, training, and program 
     assessment and execution for or on behalf of public housing 
     agencies, resident organizations, and Indian Tribes and their 
     tribally designated housing entities (including the cost of 
     necessary travel for participants in such training); 
     $10,000,000 shall be used in connection with efforts to 
     combat violent crime in public and assisted housing under the 
     Operation Safe Home Program administered by the Inspector 
     General of the Department of Housing and Urban Development; 
     $10,000,000 shall be provided to the Office of Inspector 
     General for Operation Safe Home; and $20,000,000 shall be 
     available for a program named the New Approach Anti-Drug 
     program which will provide competitive grants to entities 
     managing or operating public housing developments, federally 
     assisted multifamily housing developments, or other 
     multifamily housing developments for low-income families 
     supported by non-Federal governmental entities or similar 
     housing developments supported by nonprofit private sources 
     in order to provide or augment security (including personnel 
     costs), to assist in the investigation and/or prosecution of 
     drug related criminal activity in and around

[[Page H8326]]

     such developments, and to provide assistance for the 
     development of capital improvements at such developments 
     directly relating to the security of such developments: 
     Provided, That grants for the New Approach Anti-Drug program 
     shall be made on a competitive basis as specified in section 
     102 of the Department of Housing and Urban Development Reform 
     Act of 1989: Provided further, That the term ``drug-related 
     crime'', as defined in 42 U.S.C. 11905(2), shall also include 
     other types of crime as determined by the Secretary: Provided 
     further, That, notwithstanding section 5130(c) of the Anti-
     Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary 
     may determine not to use any such funds to provide public 
     housing youth sports grants.


     revitalization of severely distressed public housing (hope vi)

       For grants to public housing agencies for assisting in the 
     demolition of obsolete public housing projects or portions 
     thereof, the revitalization (where appropriate) of sites 
     (including remaining public housing units) on which such 
     projects are located, replacement housing which will avoid or 
     lessen concentrations of very low-income families, and 
     tenant-based assistance in accordance with section 8 of 
     the United States Housing Act of 1937; and for providing 
     replacement housing and assisting tenants displaced by the 
     demolition, $550,000,000, to remain available until 
     expended, of which the Secretary may use up to $10,000,000 
     for technical assistance and contract expertise, to be 
     provided directly or indirectly by grants, contracts or 
     cooperative agreements, including training and cost of 
     necessary travel for participants in such training, by or 
     to officials and employees of the Department and of public 
     housing agencies and to residents: Provided, That of the 
     amount made available under this heading, $26,000,000 
     shall be made available, including up to $10,000,000 for 
     Heritage House in Kansas City, Missouri, for the 
     demolition of obsolete elderly public housing projects and 
     the replacement, where appropriate, and revitalization of 
     the elderly public housing as new communities for the 
     elderly designed to meet the special needs and physical 
     requirements of the elderly: Provided further, That no 
     funds appropriated under this heading shall be used for 
     any purpose that is not provided for herein, in the United 
     States Housing Act of 1937, in the Appropriations Acts for 
     the Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies, for the fiscal 
     years 1993, 1994, 1995, and 1997, and the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996: 
     Provided further, That none of such funds shall be used 
     directly or indirectly by granting competitive advantage 
     in awards to settle litigation or pay judgments, unless 
     expressly permitted herein.


                  native american housing block grants

                     (including transfers of funds)

       For the Native American Housing Block Grants program, as 
     authorized under title I of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (Public Law 
     104-330), $600,000,000, to remain available until expended, 
     of which $5,000,000 shall be used to support the inspection 
     of Indian housing units, contract expertise, training, and 
     technical assistance in the oversight and management of 
     Indian housing and tenant-based assistance, including up to 
     $200,000 for related travel: Provided, That of the amount 
     provided under this heading, $5,000,000 shall be made 
     available for the cost of guaranteed notes and other 
     obligations, as authorized by title VI of the Native American 
     Housing Assistance and Self-Determination Act of 1996: 
     Provided further, That such costs, including the costs of 
     modifying such notes and other obligations, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That these funds are 
     available to subsidize the total principal amount of any 
     notes and other obligations, any part of which is to be 
     guaranteed, not to exceed $217,000,000: Provided further, 
     That the funds made available in the first proviso are for 
     a demonstration on ways to enhance economic growth, to 
     increase access to private capital, and to encourage the 
     investment and participation of traditional financial 
     institutions in tribal and other Native American areas: 
     Provided further, That all balances outstanding as of 
     September 30, 1997, previously appropriated under the 
     headings ``Annual Contributions for Assisted Housing'', 
     ``Development of Additional New Subsidized Housing'', 
     ``Preserving Existing Housing Investment'', ``HOME 
     Investment Partnerships Program'', ``Emergency Shelter 
     Grants Program'', and ``Homeless Assistance Funds'', 
     identified for Indian Housing Authorities and other 
     agencies primarily serving Indians or Indian areas, shall 
     be transferred to and merged with amounts made available 
     under this heading.

           indian housing loan guarantee fund program account

       For the cost of guaranteed loans, as authorized by section 
     184 of the Housing and Community Development Act of 1992 (106 
     Stat. 3739), $5,000,000, to remain available until expended: 
     Provided, That such costs, including the costs of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974, as amended: Provided 
     further, That these funds are available to subsidize total 
     loan principal, any part of which is to be guaranteed, not to 
     exceed $73,800,000.


           CAPITAL GRANTS/CAPITAL LOANS PRESERVATION ACCOUNT

       At the discretion of the Secretary, to reimburse owners, 
     nonprofits, and tenant groups for which plans of action were 
     submitted with regard to eligible properties under the Low-
     Income Housing Preservation and Resident Homeownership Act of 
     1990 (LIHPRHA) or the Emergency Low Income Housing 
     Preservation Act of 1987 (ELIHPA) prior to the effective date 
     of this Act, but were not executed for lack of available 
     funds, with such reimbursement available only for documented 
     costs directly applicable to the preparation of the plan of 
     action or any purchase agreement as determined by the 
     Secretary, on terms and conditions to be established by the 
     Secretary, $10,000,000 shall be made available.

                   Community Planning and Development


              housing opportunities for persons with aIDS

       For carrying out the Housing Opportunities for Persons with 
     AIDS program, as authorized by the AIDS Housing Opportunity 
     Act (42 U.S.C. 12901), $204,000,000, to remain available 
     until expended: Provided, That of the amount made available 
     under this heading for non-formula allocation, the Secretary 
     may designate, on a noncompetitive basis, one or more 
     nonprofit organizations that provide meals delivered to 
     homebound persons with acquired immunodeficiency syndrome or 
     a related disease to receive grants, not exceeding $250,000 
     for any grant, and the Secretary shall assess the efficacy of 
     providing such assistance to such persons.


                   community development block grants

                     (including transfers of funds)

       For grants to States and units of general local government 
     and for related expenses, not otherwise provided for, to 
     carry out a community development grants program as 
     authorized by title I of the Housing and Community 
     Development Act of 1974, as amended (the ``Act'' herein) (42 
     U.S.C. 5301), $4,675,000,000, to remain available until 
     September 30, 2000: Provided, That $67,000,000 shall be for 
     grants to Indian tribes notwithstanding section 106(a)(1) of 
     such Act; $2,100,000 shall be available as a grant to the 
     Housing Assistance Council; $1,500,000 shall be available as 
     a grant to the National American Indian Housing Council; 
     $32,000,000 shall be for grants pursuant to section 107 of 
     such Act; $7,500,000 shall be for the Community Outreach 
     Partnership program; $16,700,000 shall be for grants pursuant 
     to section 11 of the Housing Opportunity Program Extension 
     Act of 1996 (Public Law 104-120): Provided further, That not 
     to exceed 20 percent of any grant made with funds 
     appropriated herein (other than a grant made available under 
     the preceding proviso to the Housing Assistance Council or 
     the National American Indian Housing Council, or a grant 
     using funds under section 107(b)(3) of the Housing and 
     Community Development Act of 1974, as amended) shall be 
     expended for ``Planning and Management Development'' and 
     ``Administration'' as defined in regulations promulgated by 
     the Department.
       Of the amount made available under this heading, 
     $15,000,000 shall be made available for ``Capacity Building 
     for Community Development and Affordable Housing,'' as 
     authorized by section 4 of the HUD Demonstration Act of 1993 
     (Public Law 103-120), as in effect immediately before June 
     12, 1997, with not less than $5,000,000 of the funding to be 
     used in rural areas, including tribal areas.
       Of the amount provided under this heading, the Secretary of 
     Housing and Urban Development may use up to $55,000,000 for a 
     public and assisted housing self-sufficiency program, of 
     which up to $5,000,000 may be used for the Moving to Work 
     Demonstration, and at least $7,000,000 shall be used for 
     grants for service coordinators and congregate services for 
     the elderly and disabled: Provided, That for self-sufficiency 
     activities, the Secretary may make grants to public 
     housing agencies (including Indian tribes and their 
     tribally designated housing entities), nonprofit 
     corporations, and other appropriate entities for a 
     supportive services program to assist residents of public 
     and assisted housing, former residents of such housing 
     receiving tenant-based assistance under section 8 of such 
     Act (42 U.S.C. 1437f), and other low-income families and 
     individuals: Provided further, That the program shall 
     provide supportive services, principally for the benefit 
     of public housing residents, to the elderly and the 
     disabled, and to families with children where the head of 
     household would benefit from the receipt of supportive 
     services and is working, seeking work, or is preparing for 
     work by participating in job training or educational 
     programs: Provided further, That the supportive services 
     may include congregate services for the elderly and 
     disabled, service coordinators, and coordinated education, 
     training, and other supportive services, including 
     academic skills training, job search assistance, 
     assistance related to retaining employment, vocational and 
     entrepreneurship development and support programs, 
     transportation, and child care: Provided further, That the 
     Secretary shall require applications to demonstrate firm 
     commitments of funding or services from other sources: 
     Provided further, That the Secretary shall select public 
     and Indian housing agencies to receive assistance under 
     this heading on a competitive basis, taking into account 
     the quality of the proposed program, including any 
     innovative approaches, the extent of the proposed 
     coordination of supportive services, the extent of 
     commitments of funding or services from other sources, the 
     extent to which the proposed program includes reasonably 
     achievable, quantifiable goals for measuring performance 
     under the program over a three-year period, the extent of 
     success an agency has had in carrying out other comparable 
     initiatives, and other appropriate criteria established by 
     the Secretary (except that this proviso shall not apply to 
     renewal of grants for service coordinators and congregate 
     services for the elderly and disabled).
       Of the amount made available under this heading, 
     notwithstanding any other provision of law, $35,000,000 shall 
     be available for YouthBuild program activities authorized by 
     subtitle D of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act, as amended, and such activities shall 
     be an eligible activity with respect to any funds made 
     available under this heading. Local YouthBuild programs that

[[Page H8327]]

     demonstrate an ability to leverage private and nonprofit 
     funding shall be given a priority for YouthBuild funding.
       Of the amount made available under this heading $25,000,000 
     shall be available for the Secretary, in consultation with 
     the Secretary of Agriculture, to make grants, not to exceed 
     $4,000,000 each, for rural and tribal areas, including at 
     least one Native American area in Alaska and one rural area 
     in each of the States of Iowa and Missouri, to test 
     comprehensive approaches to developing a job base through 
     economic development, developing affordable low- and 
     moderate-income rental and homeownership housing, and 
     increasing the investment of both private and nonprofit 
     capital.
       Of the amount made available under this heading, 
     $138,000,000 shall be available for the Economic Development 
     Initiative (EDI) to finance a variety of efforts, including 
     $100,000,000 for making grants for targeted economic 
     investments in accordance with the terms and conditions 
     specified for such grants in the conference report and the 
     joint explanatory statement of the committee of conference 
     accompanying this Act (H.R. 2158).
       Of the amount made available under this heading, 
     notwithstanding any other provision of law, $60,000,000 shall 
     be available for the lead-based paint hazard reduction 
     program as authorized under sections 1011 and 1053 of the 
     Residential Lead-Based Hazard Reduction Act of 1992.
       Of the amount made available under this heading, 
     $25,000,000, including $15,000,000 for the County of San 
     Bernardino, California, shall be used for neighborhood 
     initiatives that are utilized to improve the conditions of 
     distressed and blighted areas and neighborhoods, and to 
     determine whether housing benefits can be integrated more 
     effectively with welfare reform initiatives.
       For the cost of guaranteed loans, $29,000,000, as 
     authorized by section 108 of the Housing and Community 
     Development Act of 1974: Provided, That such costs, including 
     the cost of modifying such loans, shall be as defined in 
     section 502 of the Congressional Budget Act of 1974, as 
     amended: Provided further, That these funds are available to 
     subsidize total loan principal, any part of which is to be 
     guaranteed, not to exceed $1,261,000,000, notwithstanding any 
     aggregate limitation on outstanding obligations guaranteed in 
     section 108(k) of the Housing and Community Development Act 
     of 1974. In addition, for administrative expenses to carry 
     out the guaranteed loan program, $1,000,000, which shall be 
     transferred to and merged with the appropriation for 
     departmental salaries and expenses.
       Of the $500,000,000 made available under the heading 
     ``Community Development Block Grants Fund'' in the 1997 
     Emergency Supplemental Appropriations Act for Recovery from 
     Natural Disasters, and for Overseas Peacekeeping Efforts, 
     Including Those in Bosnia (Public Law 105-18), not more than 
     $3,500,000 shall be made available for the non-Federal cost-
     share for a levee project at Devils Lake, North Dakota: 
     Provided, That the Secretary of Housing and Urban Development 
     shall provide the State of North Dakota with a waiver to 
     allow the use of its annual Community Development Block Grant 
     allocation for use in funding the non-Federal cost-share for 
     a levee project at Devils Lake, North Dakota: Provided 
     further, That notwithstanding any other provision of law, the 
     Secretary is prohibited from providing waivers, other than 
     those provided herein, for funds in excess of $100,000 in 
     emergency Community Development Block Grants funds for the 
     non-Federal cost-share of projects funded by the Secretary of 
     the Army through the Corps of Engineers.

                       brownfields redevelopment

       For Economic Development Grants, as authorized by section 
     108(q) of the Housing and Community Development Act of 1974, 
     as amended, for Brownfields redevelopment projects, 
     $25,000,000, to remain available until expended: Provided, 
     That the Secretary of Housing and Urban Development shall 
     make these grants available on a competitive basis as 
     specified in section 102 of the Department of Housing and 
     Urban Development Reform Act of 1989.


              empowerment zones and enterprise communities

       For planning grants, technical assistance, contracts and 
     other assistance, and training in connection with Empowerment 
     Zones and Enterprise Communities, designated by the Secretary 
     of Housing and Urban Development, to continue efforts to 
     stimulate economic opportunity in America's distressed 
     communities, $5,000,000, to remain available until expended.


                  home investment partnerships program

       For the HOME investment partnerships program, as authorized 
     under title II of the Cranston-Gonzalez National Affordable 
     Housing Act (Public Law 101-625), as amended, $1,500,000,000, 
     to remain available until expended: Provided, That up to 
     $7,000,000 shall be available for the development and 
     operation of integrated community development management 
     information systems: Provided further, That $20,000,000 shall 
     be available for Housing Counseling under section 106 of the 
     Housing and Urban Development Act of 1968: Provided further, 
     That up to $10,000,000 shall be available to carry out a 
     demonstration program in which the Secretary makes grants to 
     up to three organizations exempt from Federal taxation under 
     section 501(c)(3) of the Internal Revenue Code, selected on a 
     competitive basis, to demonstrate methods of expanding 
     homeownership opportunities for low-income borrowers through 
     expanding the secondary market for non-conforming home 
     mortgage loans to low-wealth borrowers: Provided further, 
     That grantees for such demonstration program shall have 
     experience in working with lenders who make non-conforming 
     loans to low-income borrowers, have experience in expanding 
     the secondary market for such loans, have demonstrated 
     success in carrying out such activities including raising 
     non-Federal grants and capital on concessionary terms for the 
     purpose of expanding the secondary market for loans in the 
     previous two years in amounts equal to or exceeding the 
     amount awarded to such organization under this paragraph, and 
     have demonstrated the ability to provide data on the 
     performance of such loans sufficient to allow for future 
     analysis of the investment risk of such loans.


                       supportive housing program

                              (rescission)

       Of the funds made available under this heading in Public 
     Law 102-389 and prior laws for the Supportive Housing 
     Demonstration Program, as authorized by the Stewart B. 
     McKinney Homeless Assistance Act, $6,000,000 of funds 
     recaptured during fiscal year 1998 shall be rescinded.


                           shelter plus care

                              (RESCISSION)

       Of the funds made available under this heading in Public 
     Law 102-389 and prior laws for the Shelter Plus Care program, 
     as authorized by the Stewart B. McKinney Homeless Assistance 
     Act, $4,000,000 of funds recaptured during fiscal year 1998 
     shall be rescinded.


                       homeless assistance grants

       For the emergency shelter grants program (as authorized 
     under subtitle B of title IV of the Stewart B. McKinney 
     Homeless Assistance Act, as amended); the supportive housing 
     program (as authorized under subtitle C of title IV of such 
     Act); the section 8 moderate rehabilitation single room 
     occupancy program (as authorized under the United States 
     Housing Act of 1937, as amended) to assist homeless 
     individuals pursuant to section 441 of the Stewart B. 
     McKinney Homeless Assistance Act; and the shelter plus care 
     program (as authorized under subtitle F of title IV of such 
     Act), $823,000,000, to remain available until expended.

                            Housing Programs


                    housing for special populations

                     (including transfers of funds)

       For assistance for the purchase, construction, acquisition, 
     or development of additional public and subsidized housing 
     units for low income families under the United States Housing 
     Act of 1937, as amended (42 U.S.C. 1437), not otherwise 
     provided for, $839,000,000, to remain available until 
     expended: Provided, That of the total amount provided under 
     this heading, $645,000,000 shall be for capital advances, 
     including amendments to capital advance contracts, for 
     housing for the elderly, as authorized by section 202 of the 
     Housing Act of 1959, as amended, and for project rental 
     assistance, and amendments to contracts for project rental 
     assistance, for the elderly under section 202(c)(2) of the 
     Housing Act of 1959, and for supportive services associated 
     with the housing; and $194,000,000 shall be for capital 
     advances, including amendments to capital advance contracts, 
     for supportive housing for persons with disabilities, as 
     authorized by section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act, for project rental assistance, for 
     amendments to contracts for project rental assistance, and 
     supportive services associated with the housing for persons 
     with disabilities as authorized by section 811 of such Act: 
     Provided further, That the Secretary may designate up to 25 
     percent of the amounts earmarked under this paragraph for 
     section 811 of such Act for tenant-based assistance, as 
     authorized under that section, including such authority as 
     may be waived under the next proviso, which assistance is 
     five years in duration: Provided further, That the Secretary 
     may waive any provision of section 202 of the Housing Act of 
     1959 and section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act (including the provisions governing 
     the terms and conditions of project rental assistance and 
     tenant-based assistance) that the Secretary determines is not 
     necessary to achieve the objectives of these programs, or 
     that otherwise impedes the ability to develop, operate or 
     administer projects assisted under these programs, and may 
     make provision for alternative conditions or terms where 
     appropriate: Provided further, That all balances, as of 
     September 30, 1997, remaining in either the ``Annual 
     Contributions for Assisted Housing'' account or the 
     ``Development of Additional New Subsidized Housing'' account 
     for capital advances, including amendments to capital 
     advances, for housing for the elderly, as authorized by 
     section 202 of the Housing Act of 1959, as amended, and for 
     project rental assistance, and amendments to contracts for 
     project rental assistance, for supportive housing for the 
     elderly, under section 202(c)(2) of such Act, shall be 
     transferred to and merged with the amounts for those 
     purposes under this heading; and, all balances, as of 
     September 30, 1997, remaining in either the ``Annual 
     Contributions for Assisted Housing'' account or the 
     ``Development of Additional New Subsidized Housing'' 
     account for capital advances, including amendments to 
     capital advances, for supportive housing for persons with 
     disabilities, as authorized by section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act, and for 
     project rental assistance, and amendments to contracts for 
     project rental assistance, for supportive housing for 
     persons with disabilities, as authorized under section 811 
     of such Act, shall be transferred to and merged

[[Page H8328]]

     with the amounts for those purposes under this heading.


                    other assisted housing programs

                       rental housing assistance

                              (Rescission)

       The limitation otherwise applicable to the maximum payments 
     that may be required in any fiscal year by all contracts 
     entered into under section 236 of the National Housing Act 
     (12 U.S.C. 1715z-1) is reduced in fiscal year 1998 by not 
     more than $7,350,000 in uncommitted balances of 
     authorizations provided for this purpose in appropriation 
     Acts: Provided, That up to $125,000,000 of recaptured budget 
     authority shall be canceled.


                         Flexible Subsidy Fund

                          (transfer of funds)

       From the Rental Housing Assistance Fund, all uncommitted 
     balances of excess rental charges as of September 30, 1997, 
     and any collections made during fiscal year 1998, shall be 
     transferred to the Flexible Subsidy Fund, as authorized by 
     section 236(g) of the National Housing Act, as amended.

                     Federal Housing Administration


             fha--mutual mortgage insurance program account

                     (including transfers of funds)

       During fiscal year 1998, commitments to guarantee loans to 
     carry out the purposes of section 203(b) of the National 
     Housing Act, as amended, shall not exceed a loan principal of 
     $110,000,000,000.
       During fiscal year 1998, obligations to make direct loans 
     to carry out the purposes of section 204(g) of the National 
     Housing Act, as amended, shall not exceed $200,000,000: 
     Provided, That the foregoing amount shall be for loans to 
     nonprofit and governmental entities in connection with sales 
     of single family real properties owned by the Secretary and 
     formerly insured under the Mutual Mortgage Insurance Fund.
       For administrative expenses necessary to carry out the 
     guaranteed and direct loan program, $338,421,000, to be 
     derived from the FHA-mutual mortgage insurance guaranteed 
     loans receipt account, of which not to exceed $326,309,000 
     shall be transferred to the appropriation for departmental 
     salaries and expenses; and of which not to exceed $12,112,000 
     shall be transferred to the appropriation for the Office of 
     Inspector General.


             fha--general and special risk program account

                     (including transfers of funds)

       For the cost of guaranteed loans, as authorized by sections 
     238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 
     and 1735c), including the cost of loan guarantee 
     modifications (as that term is defined in section 502 of the 
     Congressional Budget Act of 1974, as amended), $81,000,000, 
     to remain available until expended: Provided, That these 
     funds are available to subsidize total loan principal, any 
     part of which is to be guaranteed, of up to $17,400,000,000: 
     Provided further, That any amounts made available in any 
     prior appropriations Act for the cost (as such term is 
     defined in section 502 of the Congressional Budget Act of 
     1974) of guaranteed loans that are obligations of the funds 
     established under section 238 or 519 of the National Housing 
     Act that have not been obligated or that are deobligated 
     shall be available to the Secretary of Housing and Urban 
     Development in connection with the making of such 
     guarantees and shall remain available until expended, 
     notwithstanding the expiration of any period of 
     availability otherwise applicable to such amounts.
       Gross obligations for the principal amount of direct loans, 
     as authorized by sections 204(g), 207(l), 238(a), and 519(a) 
     of the National Housing Act, shall not exceed $120,000,000; 
     of which not to exceed $100,000,000 shall be for bridge 
     financing in connection with the sale of multifamily real 
     properties owned by the Secretary and formerly insured under 
     such Act; and of which not to exceed $20,000,000 shall be for 
     loans to nonprofit and governmental entities in connection 
     with the sale of single-family real properties owned by the 
     Secretary and formerly insured under such Act.
       In addition, for administrative expenses necessary to carry 
     out the guaranteed and direct loan programs, $222,305,000, of 
     which $218,134,000, including $25,000,000 for the enforcement 
     of housing standards on FHA-insured multifamily projects, 
     shall be transferred to the appropriation for departmental 
     salaries and expenses; and of which $4,171,000 shall be 
     transferred to the appropriation for the Office of Inspector 
     General.

                Government National Mortgage Association


guarantees of mortgage-backed securities loan guarantee program account

                     (including transfer of funds)

       During fiscal year 1998, new commitments to issue 
     guarantees to carry out the purposes of section 306 of the 
     National Housing Act, as amended (12 U.S.C. 1721(g)), shall 
     not exceed $130,000,000,000.
       For administrative expenses necessary to carry out the 
     guaranteed mortgage-backed securities program, $9,383,000, to 
     be derived from the GNMA-guarantees of mortgage-backed 
     securities guaranteed loan receipt account, of which not to 
     exceed $9,383,000 shall be transferred to the appropriation 
     for departmental salaries and expenses.

                    Policy Development and Research


                        research and technology

       For contracts, grants, and necessary expenses of programs 
     of research and studies relating to housing and urban 
     problems, not otherwise provided for, as authorized by title 
     V of the Housing and Urban Development Act of 1970, as 
     amended (12 U.S.C. 1701z-1 et seq.), including carrying out 
     the functions of the Secretary under section 1(a)(1)(i) of 
     Reorganization Plan No. 2 of 1968, $36,500,000, to remain 
     available until September 30, 1999.
       Of the amount made available under this heading, $500,000 
     shall be made available for a contract with the National 
     Academy of Public Administration to evaluate the Secretary's 
     efforts to implement needed management systems and processes.

                   Fair Housing and Equal Opportunity


                        fair housing activities

       For contracts, grants, and other assistance, not otherwise 
     provided for, as authorized by title VIII of the Civil Rights 
     Act of 1968, as amended by the Fair Housing Amendments Act of 
     1988, and section 561 of the Housing and Community 
     Development Act of 1987, as amended, $30,000,000, to remain 
     available until September 30, 1999, of which $15,000,000 
     shall be to carry out activities pursuant to such section 
     561. No funds made available under this heading shall be used 
     to lobby the executive or legislative branches of the Federal 
     government in connection with a specific contract, grant or 
     loan.

                     Management and Administration


                         salaries and expenses

                     (including transfer of funds)

       For necessary administrative and non-administrative 
     expenses of the Department of Housing and Urban Development, 
     not otherwise provided for, including not to exceed $7,000 
     for official reception and representation expenses, 
     $1,000,826,000, of which $544,443,000 shall be provided from 
     the various funds of the Federal Housing Administration, 
     $9,383,000 shall be provided from funds of the Government 
     National Mortgage Association, and $1,000,000 shall be 
     provided from the ``Community Development Grants Program'' 
     account.

                      office of inspector general


                     (including transfer of funds)

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $66,850,000, of which $16,283,000 shall be provided 
     from the various funds of the Federal Housing Administration 
     and $10,000,000 shall be transferred from the amount 
     earmarked for Operation Safe Home in the ``Drug Elimination 
     Grants for Low Income Housing'' account.

             Office of Federal Housing Enterprise Oversight


                         salaries and expenses

                     (including transfer of funds)

       For carrying out the Federal Housing Enterprise Financial 
     Safety and Soundness Act of 1992, $16,000,000, to remain 
     available until expended, to be derived from the Federal 
     Housing Enterprise Oversight Fund: Provided, That not to 
     exceed such amount shall be available from the General Fund 
     of the Treasury to the extent necessary to incur obligations 
     and make expenditures pending the receipt of collections to 
     the Fund: Provided further, That the General Fund amount 
     shall be reduced as collections are received during the 
     fiscal year so as to result in a final appropriation from the 
     General Fund estimated at not more than $0.


                       administrative provisions

       Sec. 201. Extenders. (a) One-For-One Replacement of Public 
     Housing.--Section 1002(d) of Public Law 104-19 is amended by 
     striking ``1997'' and inserting ``1998''.
       (b) Streamlining Section 8 Tenant-Based Assistance.--
     Section 203(d) of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1996, is amended by striking ``fiscal 
     years 1996 and 1997'' and inserting ``fiscal years 1996, 
     1997, and 1998''.
       (c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the 
     United States Housing Act of 1937 is amended--
       (1) in the third sentence, by striking ``fiscal year 1997'' 
     and inserting ``fiscal years 1997 and 1998''; and
       (2) in the last sentence, by striking ``fiscal year 1997'' 
     and inserting ``fiscal years 1997 and 1998''.
       (d) Public and Assisted Housing Rents, Income Adjustments 
     and Preferences.--
       (1) Section 402(a) of The Balanced Budget Downpayment Act, 
     I is amended by striking ``fiscal year 1997'' and inserting 
     in lieu thereof ``fiscal years 1997 and 1998''.
       (2) Section 402(f) of The Balanced Budget Downpayment Act, 
     I is amended by striking ``fiscal years 1996 and 1997'' and 
     inserting in lieu thereof ``fiscal years 1996, 1997, and 
     1998''.
       Sec. 202. Delay Reissuance of Vouchers and Certificates.--
     Section 403(c) of The Balanced Budget Downpayment Act, I is 
     amended--
       (1) by striking ``fiscal years 1996 and 1997'' and 
     inserting ``fiscal years 1996, 1997, and 1998'';
       (2) by striking ``1996 and October'' and inserting ``1996, 
     October''; and
       (3) by inserting before the semicolon the following: ``and 
     October 1, 1998 for assistance made available during fiscal 
     year 1998''.
       Sec. 203. Waiver.--The part of the HUD 1996 Community 
     Development Block Grant to the State of Illinois which is 
     administered by the State of Illinois Department of Commerce 
     and Community Affairs (grant number B-96-DC-170001) and 
     which, in turn, was granted by the Illinois Department of 
     Commerce and Community Affairs to the city of Oglesby, 
     Illinois, located in LaSalle County, Illinois (State of 
     Illinois Department of Commerce and Community Affairs grant 
     number 96-24104), for the purpose of providing infrastructure 
     for a warehouse in Oglesby, Illinois, is exempt from the 
     provisions of section 104(g)(2), (g)(3), and (g)(4) of title 
     I of

[[Page H8329]]

     the Housing and Community Development Act of 1974 as amended.
       Sec. 204. Financing Adjustment Factors.--Fifty percent of 
     the amounts of budget authority, or in lieu thereof 50 
     percent of the cash amounts associated with such budget 
     authority, that are recaptured from projects described in 
     section 1012(a) of the Stewart B. McKinney Homeless 
     Assistance Amendments Act of 1988 (Public Law 100-628, 102 
     Stat. 3224, 3268) shall be rescinded, or in the case of cash, 
     shall be remitted to the Treasury, and such amounts of budget 
     authority or cash recaptured and not rescinded or remitted to 
     the Treasury shall be used by State housing finance agencies 
     or local governments or local housing agencies with projects 
     approved by the Secretary of Housing and Urban Development 
     for which settlement occurred after January 1, 1992, in 
     accordance with such section. Notwithstanding the previous 
     sentence, the Secretary may award up to 15 percent of the 
     budget authority or cash recaptured and not rescinded or 
     remitted to the Treasury to provide project owners with 
     incentives to refinance their project at a lower interest 
     rate.
       Sec. 205. Annual Adjustment Factors.--Section 8(c)(2)(A) of 
     the United States Housing Act of 1937, as amended by section 
     201 of this title, is further amended by inserting the 
     following new sentences at the end: ``In establishing annual 
     adjustment factors for units in new construction and 
     substantial rehabilitation projects, the Secretary shall take 
     into account the fact that debt service is a fixed expense. 
     The immediately foregoing sentence shall be effective only 
     during fiscal year 1998.''.
       Sec. 206. Community Development Block Grant.--
     Notwithstanding any other provision of law, the $7,100,000 
     appropriated for an industrial park at 18th Street and 
     Indiana Avenue shall be made available by the Secretary 
     instead to 18th and Vine for rehabilitation and 
     infrastructure development associated with the ``Negro 
     Leagues Baseball Museum'' and the jazz museum.
       Sec. 207. Fair Housing and Free Speech.--None of the 
     amounts made available under this Act may be used during 
     fiscal year 1998 to investigate or prosecute under the Fair 
     Housing Act any otherwise lawful activity engaged in by one 
     or more persons, including the filing or maintaining of a 
     nonfrivolous legal action, that is engaged in solely for the 
     purpose of achieving or preventing action by a government 
     official or entity, or a court of competent jurisdiction.
       Sec. 208. Requirement for HUD to Maintain Public Notice and 
     Comment Rulemaking.--Notwithstanding any other provision of 
     law, for fiscal year 1998 and for all fiscal years 
     thereafter, the Secretary of Housing and Urban Development 
     shall maintain all current requirements under part 10 of the 
     Department of Housing and Urban Development regulations (24 
     CFR part 10) with respect to the Department's policies and 
     procedures for the promulgation and issuance of rules, 
     including the use of public participation in the rulemaking 
     process.
       Sec. 209. Brownfields as Eligible CDBG Activity.--During 
     fiscal year 1998, States and entitlement communities may use 
     funds allocated under the community development block grants 
     program under title I of the Housing and Community 
     Development Act of 1974 for environmental cleanup and 
     economic development activities related to Brownfields 
     projects in conjunction with the appropriate environmental 
     regulatory agencies, as if such activities were eligible 
     under section 105(a) of such Act.
       Sec. 210. Partial Payment of Claims on Health Care 
     Facilities.--Section 541(a) of the National Housing Act is 
     amended--
       (1) in the section heading, by adding ``and health care 
     facilities'' at the end; and
       (2) in subsection (a)--
       (A) by inserting ``or a health care facility (including a 
     nursing home, intermediate care facility, or board and care 
     home (as those terms are defined in section 232 of this Act), 
     a hospital (as that term is defined in section 242 of this 
     Act), or a group practice facility (as that term is defined 
     in section 1106 of this Act))'' after ``1978''; and
       (B) by inserting ``or for keeping the health care facility 
     operational to serve community needs,'' after ``character of 
     the project,''.
       Sec. 211. Calculation of Downpayment.--Section 203(b) of 
     the National Housing Act is amended by striking ``fiscal year 
     1997'' in paragraph (10)(A) and inserting in lieu thereof 
     ``fiscal years 1997 and 1998''.
       Sec. 212. HOPE VI NOFA.--Notwithstanding any other 
     provision of law, including the July 22, 1996 Notice of 
     Funding Availability (61 Fed. Reg. 38024), the demolition of 
     units at developments funded under the Notice of Funding 
     Availability shall be at the option of the New York City 
     Housing Authority and the assistance awarded shall be 
     allocated by the public housing agency among other eligible 
     activities under the HOPE VI program and without the 
     development costs limitations of the Notice, provided that 
     the public housing agency shall not exceed the total cost 
     limitations for the public housing agency, as provided by the 
     Department of Housing and Urban Development.
       Sec. 213. Enhanced Disposition Authority.--Section 204 of 
     the Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1997, is amended by inserting after ``owned by the 
     Secretary'' the following: ``, including, for fiscal years 
     1997 and 1998, the provision of grants and loans from the 
     General Insurance Fund (12 U.S.C. 1735c) for the necessary 
     costs of rehabilitation or demolition,''.
       Sec. 214. Home Program Formula.--The first sentence of 
     section 217(b)(3) of the Cranston-Gonzalez National 
     Affordable Housing Act is amended by striking ``only those 
     jurisdictions that are allocated an amount of $500,000 or 
     greater shall receive an allocation'' and inserting in lieu 
     thereof the following: ``jurisdictions that are allocated an 
     amount of $500,000 or more, and participating jurisdictions 
     (other than consortia that fail to renew the membership of 
     all of their member jurisdictions) that are allocated an 
     amount less than $500,000, shall receive an allocation''.
       Sec. 215. HUD Rent Reform.--Notwithstanding any other 
     provision of law, the Secretary of Housing and Urban 
     Development may provide tenant-based assistance to eligible 
     tenants of a project insured under either sections 221(d)(3) 
     or 236 of the National Housing Act in the same manner as if 
     the owner had prepaid the insured mortgage to the extent 
     necessary to minimize any rent increases or to prevent 
     displacement of low-income tenants in accordance with a 
     transaction approved by the Secretary provided that the rents 
     are no higher than the published section 8 fair market rents, 
     as of the date of enactment, during the tenants' occupancy of 
     the property.
       Sec. 216. Nursing Home Lease Terms.--Section 232(b)(4)(B) 
     of the National Housing Act is amended by striking ``fifty 
     years from the date the mortgage was executed'' and inserting 
     ``ten years to run beyond the maturity date of the 
     mortgage''.
       Sec. 217. Housing Opportunities for Persons With AIDS 
     Grants.--(a) Eligibility.--Notwithstanding section 
     854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C. 
     12903(c)(1)(A)), from any amounts made available under this 
     title for fiscal year 1998 that are allocated under such 
     section, the Secretary of Housing and Urban Development shall 
     allocate and make a grant, in the amount determined under 
     subsection (b), for any State that--
       (1) received an allocation for fiscal year 1997 under 
     clause (ii) of such section;
       (2) is not otherwise eligible for an allocation for fiscal 
     year 1998 under such clause (ii) because the State does not 
     have the number of cases of acquired immunodeficiency 
     syndrome required under such clause; and
       (3) would meet such requirement if the cases in the 
     metropolitan statistical area for any city within the State, 
     which city was not eligible for an allocation for fiscal year 
     1997 under clause (i) of such section but is eligible for an 
     allocation for fiscal year 1998 under such clause, were 
     considered to be cases outside of metropolitan statistical 
     areas described in clause (i) of such section.
       (b) Amount.--The amount of the allocation and grant for any 
     State described in subsection (a) shall be the amount that is 
     equal to the lesser of--
       (1) the difference between--
       (A) the total amount allocated for such State under section 
     854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for 
     fiscal year 1997; and
       (B) the total amount allocated for the city described in 
     subsection (a)(3) of this section under section 
     854(c)(1)(A)(i) of such Act for fiscal year 1998 (from 
     amounts made available under this title); and
       (2) $300,000.
       Sec. 218. Debt Forgiveness.--The Secretary of Housing and 
     Urban Development shall cancel the indebtedness of the 
     Village of Robbins, Illinois, relating to loans under the 
     Reconstruction Finance Corporation and refinanced under the 
     Public Facility Loan program (loan numbers ILL-11-RFC-0029 
     and ILL-11-PFL0111). The Village is hereby relieved of all 
     liability to the Federal government for the outstanding 
     principal balance on such loans, for the amount of accrued 
     interest on such loans, and for any fees and charges payable 
     in connection with such loans.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                         salaries and expenses

       For necessary expenses, not otherwise provided for, of the 
     American Battle Monuments Commission, including the 
     acquisition of land or interest in land in foreign countries; 
     purchases and repair of uniforms for caretakers of national 
     cemeteries and monuments outside of the United States and its 
     territories and possessions; rent of office and garage space 
     in foreign countries; purchase (one for replacement only) and 
     hire of passenger motor vehicles; and insurance of official 
     motor vehicles in foreign countries, when required by law of 
     such countries; $26,897,000, to remain available until 
     expended: Provided, That where station allowance has been 
     authorized by the Department of the Army for officers of the 
     Army serving the Army at certain foreign stations, the same 
     allowance shall be authorized for officers of the Armed 
     Forces assigned to the Commission while serving at the same 
     foreign stations, and this appropriation is hereby made 
     available for the payment of such allowance: Provided 
     further, That when traveling on business of the Commission, 
     officers of the Armed Forces serving as members or as 
     Secretary of the Commission may be reimbursed for expenses as 
     provided for civilian members of the Commission: Provided 
     further, That the Commission shall reimburse other Government 
     agencies, including the Armed Forces, for salary, pay, and 
     allowances of personnel assigned to it.

             Chemical Safety and Hazard Investigation Board


                         Salaries and Expenses

       For necessary expenses in carrying out activities pursuant 
     to section 112(r)(6) of the Clean Air Act, including hire of 
     passenger vehicles, and for services authorized by 5 U.S.C. 
     3109, but at rates for individuals not to exceed the per diem 
     equivalent to the maximum rate payable for senior level 
     positions under 5 U.S.C. 5376, $4,000,000.

                       Department of the Treasury

              Community Development Financial Institutions


   community development financial institutions fund program account

       For grants, loans, and technical assistance to qualifying 
     community development lenders, and

[[Page H8330]]

     administrative expenses of the Fund, including services 
     authorized by 5 U.S.C. 3109, but at rates for individuals not 
     to exceed the per diem rate equivalent to the rate for ES-3, 
     $80,000,000, to remain available until September 30, 1999, of 
     which $12,000,000 may be used for the cost of direct loans, 
     and up to $1,000,000 may be used for administrative expenses 
     to carry out the direct loan program: Provided, That the cost 
     of direct loans, including the cost of modifying such loans, 
     shall be as defined in section 502 of the Congressional 
     Budget Act of 1974: Provided further, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans not to exceed $32,000,000: Provided 
     further, That not more than $25,000,000 of the funds made 
     available under this heading may be used for programs and 
     activities authorized in section 114 of the Community 
     Development Banking and Financial Institutions Act of 1994.

                   Consumer Product Safety Commission


                         salaries and expenses

       For necessary expenses of the Consumer Product Safety 
     Commission, including hire of passenger motor vehicles, 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     maximum rate payable under 5 U.S.C. 5376, purchase of nominal 
     awards to recognize non-Federal officials' contributions to 
     Commission activities, and not to exceed $500 for official 
     reception and representation expenses, $45,000,000.

             Corporation for National and Community Service


       national and community service programs operating expenses

                     (including transfer of funds)

       For necessary expenses for the Corporation for National and 
     Community Service (referred to in the matter under this 
     heading as the ``Corporation'') in carrying out programs, 
     activities, and initiatives under the National and Community 
     Service Act of 1990 (referred to in the matter under this 
     heading as the ``Act'') (42 U.S.C. 12501 et seq.), 
     $425,500,000, to remain available until September 30, 1999: 
     Provided, That not more than $27,000,000 shall be available 
     for administrative expenses authorized under section 
     501(a)(4) of the Act (42 U.S.C. 12671(a)(4)): Provided 
     further, That not more than $2,500 shall be for official 
     reception and representation expenses: Provided further, That 
     not more than $70,000,000, to remain available without fiscal 
     year limitation, shall be transferred to the National Service 
     Trust account for educational awards authorized under 
     subtitle D of title I of the Act (42 U.S.C. 12601 et seq.), 
     of which not to exceed $5,000,000 shall be available for 
     national service scholarships for high school students 
     performing community service: Provided further, That not more 
     than $227,000,000 of the amount provided under this heading 
     shall be available for grants under the National Service 
     Trust program authorized under subtitle C of title I of the 
     Act (42 U.S.C. 12571 et seq.) (relating to activities 
     including the Americorps program), of which not more than 
     $40,000,000 may be used to administer, reimburse, or support 
     any national service program authorized under section 
     121(d)(2) of such Act (42 U.S.C. 12581(d)(2)): Provided 
     further, That not more than $5,500,000 of the funds made 
     available under this heading shall be made available for the 
     Points of Light Foundation for activities authorized under 
     title III of the Act (42 U.S.C. 12661 et seq.): Provided 
     further, That no funds shall be available for national 
     service programs run by Federal agencies authorized under 
     section 121(b) of such Act (42 U.S.C. 12571(b)): Provided 
     further, That to the maximum extent feasible, funds 
     appropriated under subtitle C of title I of the Act shall be 
     provided in a manner that is consistent with the 
     recommendations of peer review panels in order to ensure that 
     priority is given to programs that demonstrate quality, 
     innovation, replicability, and sustainability: Provided 
     further, That not more than $18,000,000 of the funds made 
     available under this heading shall be available for the 
     Civilian Community Corps authorized under subtitle E of title 
     I of the Act (42 U.S.C. 12611 et seq.): Provided further, 
     That not more than $43,000,000 shall be available for school-
     based and community-based service-learning programs 
     authorized under subtitle B of title I of the Act (42 U.S.C. 
     12521 et seq.): Provided further, That not more than 
     $30,000,000 shall be available for quality and innovation 
     activities authorized under subtitle H of title I of the Act 
     (42 U.S.C. 12853 et seq.): Provided further, That not more 
     than $5,000,000 shall be available for audits and other 
     evaluations authorized under section 179 of the Act (42 
     U.S.C. 12639): Provided further, That to the maximum extent 
     practicable, the Corporation shall increase significantly the 
     level of matching funds and in-kind contributions provided by 
     the private sector, shall expand significantly the number of 
     educational awards provided under subtitle D of title I, and 
     shall reduce the total Federal costs per participant in all 
     programs.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $3,000,000.

                       Court of Veterans Appeals


                         Salaries and Expenses

       For necessary expenses for the operation of the United 
     States Court of Veterans Appeals as authorized by 38 U.S.C. 
     sections 7251-7298, $9,319,000, of which $790,000, shall be 
     available for the purpose of providing financial assistance 
     as described, and in accordance with the process and 
     reporting procedures set fourth, under this heading in 
     Public Law 102-229.

                      Department of Defense--Civil

                       Cemeterial Expenses, Army


                         Salaries and Expenses

       For necessary expenses, as authorized by law, for 
     maintenance, operation, and improvement of Arlington National 
     Cemetery and Soldiers' and Airmen's Home National Cemetery, 
     including the purchase of two passenger motor vehicles for 
     replacement only, and not to exceed $1,000 for official 
     reception and representation expenses, $11,815,000, to remain 
     available until expended.

                    Environmental Protection Agency


                         Science and Technology

                     (including transfer of funds)

       For science and technology, including research and 
     development activities, which shall include research and 
     development activities under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (CERCLA), 
     as amended; necessary expenses for personnel and related 
     costs and travel expenses, including uniforms, or allowances 
     therefore, as authorized by 5 U.S.C. 5901-5902; services as 
     authorized by 5 U.S.C. 3109, but at rates for individuals not 
     to exceed the per diem rate equivalent to the rate for GS-18; 
     procurement of laboratory equipment and supplies; other 
     operating expenses in support of research and development; 
     construction, alteration, repair, rehabilitation, and 
     renovation of facilities, not to exceed $75,000 per project, 
     $631,000,000, which shall remain available until September 
     30, 1999: Provided, That $49,600,000 of the funds 
     appropriated under this heading shall be to conduct and 
     administer a comprehensive, peer-reviewed, near- and long-
     term particulate matter research program in accordance with 
     the terms and conditions set forth for such research program 
     in the conference report and joint explanatory statement of 
     the committee of conference accompanying this Act (H.R. 
     2158): Provided further, That no later than 30 days following 
     enactment of this Act, the Environmental Protection Agency 
     shall enter into a contract or cooperative agreement with the 
     National Academy of Sciences to develop a comprehensive, 
     prioritized, near- and long-term particulate matter research 
     program and monitoring plan in accordance with the terms and 
     conditions set forth in the conference report and joint 
     explanatory statement of the committee of conference 
     accompanying this Act (H.R. 2158).


                 environmental programs and management

       For environmental programs and management, including 
     necessary expenses, not otherwise provided for, for personnel 
     and related costs and travel expenses, including uniforms, or 
     allowances therefore, as authorized by 5 U.S.C. 5901-5902; 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     rate for GS-18; hire of passenger motor vehicles; hire, 
     maintenance, and operation of aircraft; purchase of reprints; 
     library memberships in societies or associations which issue 
     publications to members only or at a price to members lower 
     than to subscribers who are not members; construction, 
     alteration, repair, rehabilitation, and renovation of 
     facilities, not to exceed $75,000 per project; and not to 
     exceed $6,000 for official reception and representation 
     expenses, $1,801,000,000, which shall remain available until 
     September 30, 1999.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, and for construction, alteration, 
     repair, rehabilitation, and renovation of facilities, not to 
     exceed $75,000 per project, $28,501,000, to remain available 
     until September 30, 1999.


                        buildings and facilities

       For construction, repair, improvement, extension, 
     alteration, and purchase of fixed equipment or facilities of, 
     or for use by, the Environmental Protection Agency, 
     $109,420,000, to remain available until expended: Provided, 
     That the Environmental Protection Agency is authorized to 
     establish and construct a consolidated research facility at 
     Research Triangle Park, North Carolina, at a maximum total 
     construction cost of $272,700,000, and to obligate such 
     monies as are made available by this Act for this purpose.


                     hazardous substance superfund

                     (including transfer of funds)

       For necessary expenses to carry out the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (CERCLA), as amended, including sections 111 (c)(3), 
     (c)(5), (c)(6), and (e)(4) (42 U.S.C. 9611), and for 
     construction, alteration, repair, rehabilitation, and 
     renovation of facilities, not to exceed $75,000 per project; 
     not to exceed $2,150,000,000 (of which $100,000,000 shall not 
     become available until September 1, 1998), to remain 
     available until expended, consisting of $1,900,000,000, as 
     authorized by section 517(a) of the Superfund Amendments and 
     Reauthorization Act of 1986 (SARA), as amended by Public Law 
     101-508, and $250,000,000 as a payment from general revenues 
     to the Hazardous Substance Superfund as authorized by section 
     517(b) of SARA, as amended by Public Law 101-508: Provided, 
     That funds appropriated under this heading may be allocated 
     to other Federal agencies in accordance with section 111(a) 
     of CERCLA: Provided further, That of the funds appropriated 
     under this heading, $650,000,000 shall not become available 
     for obligation until October 1, 1998, and, further, shall be 
     available for obligation only upon enactment by May 15, 1998, 
     of specific legislation which reauthorizes the Superfund 
     program: Provided further, That $11,641,000 of the funds 
     appropriated under this heading shall be transferred to the 
     ``Office of Inspector General'' appropriation to remain 
     available until September 30, 1999: Provided further, That 
     notwithstanding section 111(m) of CERCLA or any other 
     provision of law, $74,000,000 of the funds appropriated under 
     this heading shall be available to the Agency for Toxic 
     Substances and Disease Registry to carry out activities 
     described in sections 104(i), 111(c)(4), and 111(c)(14) of 
     CERCLA

[[Page H8331]]

     and section 118(f) of SARA: Provided further, That 
     $35,000,000 of the funds appropriated under this heading 
     shall be transferred to the ``Science and Technology'' 
     appropriation to remain available until September 30, 1999: 
     Provided further, That none of the funds appropriated under 
     this heading shall be used for Brownfields revolving loan 
     funds unless specifically authorized by subsequent 
     legislation: Provided further, That none of the funds 
     appropriated under this heading shall be available for the 
     Agency for Toxic Substances and Disease Registry to issue in 
     excess of 40 toxicological profiles pursuant to section 
     104(i) of CERCLA during fiscal year 1998.

                leaking underground storage tank program

                     (including transfer of funds)

       For necessary expenses to carry out leaking underground 
     storage tank cleanup activities authorized by section 205 of 
     the Superfund Amendments and Reauthorization Act of 1986, and 
     for construction, alteration, repair, rehabilitation, and 
     renovation of facilities, not to exceed $75,000 per project, 
     $65,000,000, to remain available until expended: Provided, 
     That no more than $7,500,000 shall be available for 
     administrative expenses.


                           oil spill response

                     (including transfer of funds)

       For expenses necessary to carry out the Environmental 
     Protection Agency's responsibilities under the Oil Pollution 
     Act of 1990, $15,000,000, to be derived from the Oil Spill 
     Liability trust fund, and to remain available until expended: 
     Provided, That not more than $9,000,000 of these funds shall 
     be available for administrative expenses.


                   state and tribal assistance grants

       For environmental programs and infrastructure assistance, 
     including capitalization grants for State revolving funds and 
     performance partnership grants, $3,213,125,000, to remain 
     available until expended, of which $1,350,000,000 shall be 
     for making capitalization grants for the Clean Water State 
     Revolving Funds under title VI of the Federal Water Pollution 
     Control Act, as amended, and $725,000,000 shall be for 
     capitalization grants for the Drinking Water State 
     Revolving Funds under section 1452 of the Safe Drinking 
     Water Act, as amended; $75,000,000 for architectural, 
     engineering, planning, design, construction and related 
     activities in connection with the construction of high 
     priority water and wastewater facilities in the area of 
     the United States-Mexico Border, after consultation with 
     the appropriate border commission; $50,000,000 for grants 
     to the State of Texas which shall be matched by state 
     funds from state resources at 20 percent of the federal 
     appropriation for the purpose of improving water and 
     wastewater treatment for colonias; $15,000,000 for grants 
     to the State of Alaska to address drinking water and 
     wastewater infrastructure needs of rural and Alaska Native 
     Villages as provided by section 303 of Public Law 104-182; 
     $253,125,000 for making grants for the construction of 
     wastewater and water treatment facilities and groundwater 
     protection infrastructure in accordance with the terms and 
     conditions specified for such grants in the conference 
     report and joint explanatory statement of the committee of 
     conference accompanying this Act (H.R. 2158); and 
     $745,000,000 for grants to States, federally recognized 
     tribes, and air pollution control agencies for multi-media 
     or single media pollution prevention, control and 
     abatement and related activities pursuant to the 
     provisions set forth under this heading in Public Law 104-
     134, provided that eligible recipients of these funds and 
     the funds made available for this purpose since fiscal 
     year 1996 and hereafter include States, federally 
     recognized tribes, interstate agencies, tribal consortia, 
     and air pollution control agencies, as provided in 
     authorizing statutes, subject to such terms and conditions 
     as the Administrator shall establish, and for making 
     grants under section 103 of the Clean Air Act for 
     particulate matter monitoring and data collection 
     activities: Provided, That, consistent with section 
     1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j-
     12(g)), section 302 of the Safe Drinking Water Act 
     Amendments of 1996 (Public Law 104-182) and the 
     accompanying joint explanatory statement of the committee 
     on conference (H. Rept. No. 104-741 to accompany S. 1316, 
     the Safe Drinking Water Act Amendments of 1996), and 
     notwithstanding any other provision of law, States may 
     combine the assets of State Revolving Funds (SRFs) 
     established under section 1452 of the Safe Drinking Water 
     Act, as amended, and title VI of the Federal Water 
     Pollution Control Act, as amended, as security for bond 
     issues to enhance the lending capacity of one or both 
     SRFs, but not to acquire the state match for either 
     program, provided that revenues from the bonds are 
     allocated to the purposes of the Safe Drinking Water Act 
     and the Federal Water Pollution Control Act in the same 
     portion as the funds are used as security for the bonds: 
     Provided further, That, hereafter from funds appropriated 
     under this heading, the Administrator is authorized to 
     make grants to federally recognized Indian governments for 
     the development of multi-media environmental programs: 
     Provided further, That, hereafter, the funds available 
     under this heading for grants to States, federally 
     recognized tribes, and air pollution control agencies for 
     multi-media or single media pollution prevention, control 
     and abatement and related activities may also be used for 
     the direct implementation by the Federal Government of a 
     program required by law in the absence of an acceptable 
     State or tribal program: Provided further, That 
     notwithstanding any other provision of law, in the case of 
     a publicly owned treatment works in the District of 
     Columbia, the Federal share of grants awarded under title 
     II of the Federal Water Pollution Control Act, beginning 
     October 1, 1997, and continuing through September 30, 
     1999, shall be 80 percent of the cost of construction, and 
     all grants made to such publicly owned treatment works in 
     the District of Columbia may include an advance of 
     allowance under section 201(l)(2): Provided further, That, 
     notwithstanding any other provision of law, the 
     Administrator is authorized to make a grant of $4,326,000 
     under title II of the Federal Water Pollution Control Act, 
     as amended, from funds appropriated in prior years under 
     section 205 of the Act for the State of Florida and 
     available due to deobligation, to the appropriate 
     instrumentality for wastewater treatment works in Monroe 
     County, Florida.


                          working capital fund

       Under this heading in Public Law 104-204, delete the 
     following: the phrases, ``franchise fund pilot to be known as 
     the''; ``as authorized by section 403 of Public Law 103-
     356,''; and ``as provided in such section''; and the final 
     proviso. After the phrase, ``to be available'', insert 
     ``without fiscal year limitation''.

                   Executive Office of the President


                office of science and technology policy

       For necessary expenses of the Office of Science and 
     Technology Policy, in carrying out the purposes of the 
     National Science and Technology Policy, Organization, and 
     Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire of 
     passenger motor vehicles, and services as authorized by 5 
     U.S.C. 3109, not to exceed $2,500 for official reception and 
     representation expenses, and rental of conference rooms in 
     the District of Columbia, $4,932,000.


  council on environmental quality and office of environmental quality

       For necessary expenses to continue functions assigned to 
     the Council on Environmental Quality and Office of 
     Environmental Quality pursuant to the National Environmental 
     Policy Act of 1969, the Environmental Quality Improvement Act 
     of 1970, and Reorganization Plan No. 1 of 1977, $2,500,000: 
     Provided, That, notwithstanding any other provision of law, 
     no funds other than those appropriated under this heading, 
     shall be used for or by the Council on Environmental Quality 
     and Office of Environmental Quality: Provided further, That 
     notwithstanding section 202 of the National Environmental 
     Policy Act of 1970, the Council shall consist of one member, 
     appointed by the President, by and with the advice and 
     consent of the Senate, serving as Chairman and exercising all 
     powers, functions, and duties of the Council.

                          Unanticipated Needs

       For expenses necessary to enable the President to meet 
     unanticipated needs, in furtherance of the national interest, 
     security, or defense which may arise at home or abroad during 
     the current fiscal year; $1,000,000.

                 Federal Deposit Insurance Corporation


                      office of inspector general

                     (including transfer of funds)

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $34,365,000, to be derived from the Bank 
     Insurance Fund, the Savings Association Insurance Fund, and 
     the FSLIC Resolution Fund.

                  Federal Emergency Management Agency


                            disaster relief

       For necessary expenses in carrying out the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), $320,000,000, and, notwithstanding 42 
     U.S.C. 5203, to remain available until expended.


            disaster assistance direct loan program account

       For the cost of direct loans, $1,495,000, as authorized by 
     section 319 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans not to exceed $25,000,000.
       In addition, for administrative expenses to carry out the 
     direct loan program, $341,000.


                         salaries and expenses

       For necessary expenses, not otherwise provided for, 
     including hire and purchase of motor vehicles as authorized 
     by 31 U.S.C. 1343; uniforms, or allowances therefor, as 
     authorized by 5 U.S.C. 5901-5902; services as authorized by 5 
     U.S.C. 3109, but at rates for individuals not to exceed the 
     per diem rate equivalent to the rate for GS-18; expenses of 
     attendance of cooperating officials and individuals at 
     meetings concerned with the work of emergency preparedness; 
     transportation in connection with the continuity of 
     Government programs to the same extent and in the same manner 
     as permitted the Secretary of a Military Department under 10 
     U.S.C. 2632; and not to exceed $2,500 for official reception 
     and representation expenses, $171,773,000.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $4,803,000.


              emergency management planning and assistance

       For necessary expenses, not otherwise provided for, to 
     carry out activities under the National Flood Insurance Act 
     of 1968, as amended, and the Flood Disaster Protection Act of 
     1973, as amended (42 U.S.C. 4001 et seq.), the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of 
     1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire 
     Prevention and Control Act of 1974, as amended (15 U.S.C. 
     2201 et seq.), the Defense Production Act of 1950, as amended 
     (50 U.S.C. App. 2061 et seq.), sections 107 and 303 of the 
     National Security Act of 1947, as amended (50 U.S.C. 404-
     405), and Reorganization Plan No. 3 of 1978, $243,546,000: 
     Provided, That for purposes of pre-

[[Page H8332]]

     disaster mitigation pursuant to 42 U.S.C. 5131 (b) and (c) 
     and 42 U.S.C. 5196 (e) and (i), $30,000,000 of the funds made 
     available under this heading shall be available until 
     expended for project grants: Provided further, That the 
     Director of the Federal Emergency Management Agency shall 
     make a grant for $1,500,000 to resolve issues under the 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970, Public Law 91-646, involving the City 
     of Jackson, Mississippi.


                   emergency food and shelter program

       To carry out an emergency food and shelter program pursuant 
     to title III of Public Law 100-77, as amended, $100,000,000: 
     Provided, That total administrative costs shall not exceed 
     three and one-half percent of the total appropriation.


                     national flood insurance fund

                     (including transfer of funds)

       For activities under the National Flood Insurance Act of 
     1968, the Flood Disaster Protection Act of 1973, and the 
     National Flood Insurance Reform Act of 1994, not to exceed 
     $21,610,000 for salaries and expenses associated with flood 
     mitigation and flood insurance operations, and not to exceed 
     $78,464,000 for flood mitigation, including up to $20,000,000 
     for expenses under section 1366 of the National Flood 
     Insurance Act, which amount shall be available for transfer 
     to the National Flood Mitigation Fund until September 30, 
     1999. In fiscal year 1998, no funds in excess of (1) 
     $47,000,000 for operating expenses, (2) $375,165,000 for 
     agents' commissions and taxes, and (3) $50,000,000 for 
     interest on Treasury borrowings shall be available from the 
     National Flood Insurance Fund without prior notice to the 
     Committees on Appropriations. For fiscal year 1998, flood 
     insurance rates shall not exceed the level authorized by the 
     National Flood Insurance Reform Act of 1994.
       Section 1309(a)(2) of the National Flood Insurance Act (42 
     U.S.C. 4016(a)(2)), as amended by Public Law 104-208, is 
     further amended by striking the date ``1997'' and inserting 
     in lieu thereof the date ``1998''.
       Section 1319 of the National Flood Insurance Act of 1968, 
     as amended (42 U.S.C. 4026), is amended by striking ``October 
     23, 1997'' and inserting ``September 30, 1998''.
       Section 1336 of the National Flood Insurance Act of 1968, 
     as amended (42 U.S.C. 4056), is amended by striking ``October 
     23, 1997'' and inserting ``September 30, 1998''.
       The first sentence of section 1376(c) of the National Flood 
     Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is 
     amended by striking all after ``to be appropriated'' and 
     inserting ``such sums as may be necessary through September 
     30, 1998, for studies under this title.''.


                        administrative provision

       The Director of the Federal Emergency Management Agency 
     shall promulgate through rulemaking a methodology for 
     assessment and collection of fees to be assessed and 
     collected beginning in fiscal year 1998 applicable to persons 
     subject to the Federal Emergency Management Agency's 
     radiological emergency preparedness regulations. The 
     aggregate charges assessed pursuant to this section during 
     fiscal year 1998 shall approximate, but not be less than, 100 
     per centum of the amounts anticipated by the Federal 
     Emergency Management Agency to be obligated for its 
     radiological emergency preparedness program for such fiscal 
     year. The methodology for assessment and collection of fees 
     shall be fair and equitable, and shall reflect the full 
     amount of costs of providing radiological emergency planning, 
     preparedness, response and associated services. Such fees 
     shall be assessed in a manner that reflects the use of agency 
     resources for classes of regulated persons and the 
     administrative costs of collecting such fees. Fees received 
     pursuant to this section shall be deposited in the general 
     fund of the Treasury as offsetting receipts. Assessment and 
     collection of such fees are only authorized during fiscal 
     year 1998.

                    General Services Administration


                    consumer information center fund

       For necessary expenses of the Consumer Information Center, 
     including services authorized by 5 U.S.C. 3109, $2,419,000, 
     to be deposited into the Consumer Information Center Fund: 
     Provided, That the appropriations, revenues and collections 
     deposited into the fund shall be available for necessary 
     expenses of Consumer Information Center activities in the 
     aggregate amount of $7,500,000. Appropriations, revenues, and 
     collections accruing to this fund during fiscal year 1998 in 
     excess of $7,500,000 shall remain in the fund and shall not 
     be available for expenditure except as authorized in 
     appropriations Acts: Provided further, That notwithstanding 
     any other provision of law, the Consumer Information Center 
     may accept and deposit to this account, during fiscal year 
     1998 and hereafter, gifts for the purpose of defraying its 
     costs of printing, publishing, and distributing consumer 
     information and educational materials and undertaking other 
     consumer information activities; may expend those gifts for 
     those purposes, in addition to amounts appropriated or 
     otherwise made available; and the balance shall remain 
     available for expenditure for such purpose.

             National Aeronautics and Space Administration


                           human space flight

       For necessary expenses, not otherwise provided for, in the 
     conduct and support of human space flight research and 
     development activities, including research, development, 
     operations, and services; maintenance; construction of 
     facilities including repair, rehabilitation, and modification 
     of real and personal property, and acquisition or 
     condemnation of real property, as authorized by law; space 
     flight, spacecraft control and communications activities 
     including operations, production, and services; and purchase, 
     lease, charter, maintenance and operation of mission and 
     administrative aircraft, $5,506,500,000, to remain available 
     until September 30, 1999: Provided, That of the 
     $2,351,300,000 made available under this heading for Space 
     Station activities, only $1,500,000,000 shall be available 
     before March 31, 1998.


                  science, aeronautics and technology

       For necessary expenses, not otherwise provided for, in the 
     conduct and support of science, aeronautics and technology 
     research and development activities, including research, 
     development, operations, and services; maintenance; 
     construction of facilities including repair, rehabilitation, 
     and modification of real and personal property, and 
     acquisition or condemnation of real property, as authorized 
     by law; space flight, spacecraft control and communications 
     activities including operations, production, and services; 
     and purchase, lease, charter, maintenance and operation of 
     mission and administrative aircraft, $5,690,000,000, to 
     remain available until September 30, 1999.


                            mission support

       For necessary expenses, not otherwise provided for, in 
     carrying out mission support for human space flight programs 
     and science, aeronautical, and technology programs, including 
     research operations and support; space communications 
     activities including operations, production and services; 
     maintenance; construction of facilities including repair, 
     rehabilitation, and modification of facilities, minor 
     construction of new facilities and additions to existing 
     facilities, facility planning and design, environmental 
     compliance and restoration, and acquisition or condemnation 
     of real property, as authorized by law; program management; 
     personnel and related costs, including uniforms or allowances 
     therefor, as authorized by 5 U.S.C. 5901-5902; travel 
     expenses; purchase, lease, charter, maintenance, and 
     operation of mission and administrative aircraft; not to 
     exceed $35,000 for official reception and representation 
     expenses; and purchase (not to exceed 33 for replacement 
     only) and hire of passenger motor vehicles; $2,433,200,000, 
     to remain available until September 30, 1999.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $18,300,000.


                       administrative provisions

       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Human space flight'', ``Science, 
     aeronautics and technology'', or ``Mission support'' by this 
     appropriations Act, when any activity has been initiated by 
     the incurrence of obligations for construction of facilities 
     as authorized by law, such amount available for such activity 
     shall remain available until expended. This provision does 
     not apply to the amounts appropriated in ``Mission support'' 
     pursuant to the authorization for repair, rehabilitation and 
     modification of facilities, minor construction of new 
     facilities and additions to existing facilities, and facility 
     planning and design.
       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Human space flight'', ``Science, 
     aeronautics and technology'', or ``Mission support'' by this 
     appropriations Act, the amounts appropriated for construction 
     of facilities shall remain available until September 30, 
     2000.
       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Mission support'' and ``Office of 
     Inspector General'', amounts made available by this Act for 
     personnel and related costs and travel expenses of the 
     National Aeronautics and Space Administration shall remain 
     available until September 30, 1998 and may be used to enter 
     into contracts for training, investigations, costs associated 
     with personnel relocation, and for other services, to be 
     provided during the next fiscal year.
       Of the funds provided to the National Aeronautics and Space 
     Administration in this Act, the Administrator shall by 
     November 1, 1998, make available no less than $400,000 for a 
     study by the National Research Council, with an interim 
     report to be completed by June 1, 1998, that evaluates, in 
     terms of the potential impact on the Space Station's assembly 
     schedule, budget, and capabilities, the engineering 
     challenges posed by extravehicular activity (EVA) 
     requirements, United States and non-United States space 
     launch requirements, the potential need to upgrade or replace 
     equipment and components after assembly complete, and the 
     requirement to decommission and disassemble the facility.

                  National Credit Union Administration


                       central liquidity facility

       During fiscal year 1998, gross obligations of the Central 
     Liquidity Facility for the principal amount of new direct 
     loans to member credit unions, as authorized by the National 
     Credit Union Central Liquidity Facility Act (12 U.S.C. 1795), 
     shall not exceed $600,000,000: Provided, That administrative 
     expenses of the Central Liquidity Facility in fiscal year 
     1998 shall not exceed $203,000: Provided further, That 
     $1,000,000, together with amounts of principal and interest 
     on loans repaid, to be available until expended, is available 
     for loans to community development credit unions.

                      National Science Foundation


                    research and related activities

       For necessary expenses in carrying out the National Science 
     Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and 
     the Act to establish a National Medal of Science (42 U.S.C. 
     1880-1881); services as authorized by 5 U.S.C. 3109; 
     maintenance and operation of aircraft and purchase of flight 
     services for research support; acquisition of aircraft; 
     $2,545,700,000, of which not to exceed $228,530,000 shall 
     remain available until expended for Polar research and 
     operations support, and for reimbursement to other Federal 
     agencies for operational and science support and logistical 
     and other related activities for the United States Antarctic 
     program; the

[[Page H8333]]

     balance to remain available until September 30, 1999: 
     Provided, That receipts for scientific support services and 
     materials furnished by the National Research Centers and 
     other National Science Foundation supported research 
     facilities may be credited to this appropriation: Provided 
     further, That to the extent that the amount appropriated 
     is less than the total amount authorized to be 
     appropriated for included program activities, all amounts, 
     including floors and ceilings, specified in the 
     authorizing Act for those program activities or their 
     subactivities shall be reduced proportionally: Provided 
     further, That $40,000,000 of the funds available under 
     this heading shall be made available for a comprehensive 
     research initiative on plant genomes for economically 
     significant crops.


                        major research equipment

       For necessary expenses of major construction projects 
     pursuant to the National Science Foundation Act of 1950, as 
     amended, $109,000,000, to remain available until expended, of 
     which $35,000,000 shall become available on September 30, 
     1998.


                     education and human resources

       For necessary expenses in carrying out science and 
     engineering education and human resources programs and 
     activities pursuant to the National Science Foundation Act of 
     1950, as amended (42 U.S.C. 1861-1875), including services as 
     authorized by 5 U.S.C. 3109 and rental of conference rooms in 
     the District of Columbia, $632,500,000, to remain available 
     until September 30, 1999: Provided, That to the extent that 
     the amount of this appropriation is less than the total 
     amount authorized to be appropriated for included program 
     activities, all amounts, including floors and ceilings, 
     specified in the authorizing Act for those program activities 
     or their subactivities shall be reduced proportionally.


                         salaries and expenses

       For salaries and expenses necessary in carrying out the 
     National Science Foundation Act of 1950, as amended (42 
     U.S.C. 1861-1875); services authorized by 5 U.S.C. 3109; hire 
     of passenger motor vehicles; not to exceed $9,000 for 
     official reception and representation expenses; uniforms or 
     allowances therefor, as authorized by 5 U.S.C. 5901-5902; 
     rental of conference rooms in the District of Columbia; 
     reimbursement of the General Services Administration for 
     security guard services and headquarters relocation; 
     $136,950,000: Provided, That contracts may be entered into 
     under ``Salaries and expenses'' in fiscal year 1998 for 
     maintenance and operation of facilities, and for other 
     services, to be provided during the next fiscal year.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     as authorized by the Inspector General Act of 1978, as 
     amended, $4,850,000, to remain available until September 30, 
     1999.

                 Neighborhood Reinvestment Corporation


          Payment to the Neighborhood Reinvestment Corporation

       For payment to the Neighborhood Reinvestment Corporation 
     for use in neighborhood reinvestment activities, as 
     authorized by the Neighborhood Reinvestment Corporation Act 
     (42 U.S.C. 8101-8107), $60,000,000.

                        Selective Service System


                         Salaries and Expenses

       For necessary expenses of the Selective Service System, 
     including expenses of attendance at meetings and of training 
     for uniformed personnel assigned to the Selective Service 
     System, as authorized by 5 U.S.C. 4101-4118 for civilian 
     employees; and not to exceed $1,000 for official reception 
     and representation expenses; $23,413,000: Provided, That 
     during the current fiscal year, the President may exempt this 
     appropriation from the provisions of 31 U.S.C. 1341, whenever 
     he deems such action to be necessary in the interest of 
     national defense: Provided further, That none of the funds 
     appropriated by this Act may be expended for or in connection 
     with the induction of any person into the Armed Forces of the 
     United States.

                      TITLE IV--GENERAL PROVISIONS

       Sec. 401. Where appropriations in titles I, II, and III of 
     this Act are expendable for travel expenses and no specific 
     limitation has been placed thereon, the expenditures for such 
     travel expenses may not exceed the amounts set forth 
     therefore in the budget estimates submitted for the 
     appropriations: Provided, That this provision does not apply 
     to accounts that do not contain an object classification for 
     travel: Provided further, That this section shall not apply 
     to travel performed by uncompensated officials of local 
     boards and appeal boards of the Selective Service System; to 
     travel performed directly in connection with care and 
     treatment of medical beneficiaries of the Department of 
     Veterans Affairs; to travel performed in connection with 
     major disasters or emergencies declared or determined by the 
     President under the provisions of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act; to travel 
     performed by the Offices of Inspector General in connection 
     with audits and investigations; or to payments to interagency 
     motor pools where separately set forth in the budget 
     schedules: Provided further, That if appropriations in titles 
     I, II, and III exceed the amounts set forth in budget 
     estimates initially submitted for such appropriations, the 
     expenditures for travel may correspondingly exceed the 
     amounts therefore set forth in the estimates in the same 
     proportion.
       Sec. 402. Appropriations and funds available for the 
     administrative expenses of the Department of Housing and 
     Urban Development and the Selective Service System shall be 
     available in the current fiscal year for purchase of 
     uniforms, or allowances therefor, as authorized by 5 U.S.C. 
     5901-5902; hire of passenger motor vehicles; and services as 
     authorized by 5 U.S.C. 3109.
       Sec. 403. Funds of the Department of Housing and Urban 
     Development subject to the Government Corporation Control Act 
     or section 402 of the Housing Act of 1950 shall be available, 
     without regard to the limitations on administrative expenses, 
     for legal services on a contract or fee basis, and for 
     utilizing and making payment for services and facilities of 
     Federal National Mortgage Association, Government National 
     Mortgage Association, Federal Home Loan Mortgage Corporation, 
     Federal Financing Bank, Federal Reserve banks or any member 
     thereof, Federal Home Loan banks, and any insured bank within 
     the meaning of the Federal Deposit Insurance Corporation Act, 
     as amended (12 U.S.C. 1811-1831).
       Sec. 404. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 405. No funds appropriated by this Act may be 
     expended--
       (1) pursuant to a certification of an officer or employee 
     of the United States unless--
       (A) such certification is accompanied by, or is part of, a 
     voucher or abstract which describes the payee or payees and 
     the items or services for which such expenditure is being 
     made, or
       (B) the expenditure of funds pursuant to such 
     certification, and without such a voucher or abstract, is 
     specifically authorized by law; and
       (2) unless such expenditure is subject to audit by the 
     General Accounting Office or is specifically exempt by law 
     from such audit.
       Sec. 406. None of the funds provided in this Act to any 
     department or agency may be expended for the transportation 
     of any officer or employee of such department or agency 
     between his domicile and his place of employment, with the 
     exception of any officer or employee authorized such 
     transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
       Sec. 407. None of the funds provided in this Act may be 
     used for payment, through grants or contracts, to recipients 
     that do not share in the cost of conducting research 
     resulting from proposals not specifically solicited by the 
     Government: Provided, That the extent of cost sharing by the 
     recipient shall reflect the mutuality of interest of the 
     grantee or contractor and the Government in the research.
       Sec. 408. None of the funds in this Act may be used, 
     directly or through grants, to pay or to provide 
     reimbursement for payment of the salary of a consultant 
     (whether retained by the Federal Government or a grantee) at 
     more than the daily equivalent of the rate paid for level IV 
     of the Executive Schedule, unless specifically authorized by 
     law.
       Sec. 409. None of the funds provided in this Act shall be 
     used to pay the expenses of, or otherwise compensate, non-
     Federal parties intervening in regulatory or adjudicatory 
     proceedings. Nothing herein affects the authority of the 
     Consumer Product Safety Commission pursuant to section 7 of 
     the Consumer Product Safety Act (15 U.S.C. 2056 et seq.).
       Sec. 410. Except as otherwise provided under existing law 
     or under an existing Executive Order issued pursuant to an 
     existing law, the obligation or expenditure of any 
     appropriation under this Act for contracts for any consulting 
     service shall be limited to contracts which are (1) a matter 
     of public record and available for public inspection, and (2) 
     thereafter included in a publicly available list of all 
     contracts entered into within twenty-four months prior to the 
     date on which the list is made available to the public and of 
     all contracts on which performance has not been completed by 
     such date. The list required by the preceding sentence shall 
     be updated quarterly and shall include a narrative 
     description of the work to be performed under each such 
     contract.
       Sec. 411. Except as otherwise provided by law, no part of 
     any appropriation contained in this Act shall be obligated or 
     expended by any executive agency, as referred to in the 
     Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
     seq.), for a contract for services unless such executive 
     agency (1) has awarded and entered into such contract in full 
     compliance with such Act and the regulations promulgated 
     thereunder, and (2) requires any report prepared pursuant to 
     such contract, including plans, evaluations, studies, 
     analyses and manuals, and any report prepared by the agency 
     which is substantially derived from or substantially includes 
     any report prepared pursuant to such contract, to contain 
     information concerning (A) the contract pursuant to which the 
     report was prepared, and (B) the contractor who prepared the 
     report pursuant to such contract.
       Sec. 412. Except as otherwise provided in section 406, none 
     of the funds provided in this Act to any department or agency 
     shall be obligated or expended to provide a personal cook, 
     chauffeur, or other personal servants to any officer or 
     employee of such department or agency.
       Sec. 413. None of the funds provided in this Act to any 
     department or agency shall be obligated or expended to 
     procure passenger automobiles as defined in 15 U.S.C. 2001 
     with an EPA estimated miles per gallon average of less than 
     22 miles per gallon.
       Sec. 414. None of the funds appropriated in title I of this 
     Act shall be used to enter into any new lease of real 
     property if the estimated annual rental is more than $300,000 
     unless the Secretary submits, in writing, a report to the 
     Committees on Appropriations of the Congress and a period of 
     30 days has expired following the date on which the report is 
     received by the Committees on Appropriations.
       Sec. 415. (a) 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) In providing financial assistance to, or entering into 
     any contract with, any entity using funds made available in 
     this Act, the head of

[[Page H8334]]

     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. 416. None of the funds appropriated in this Act may be 
     used to implement any cap on reimbursements to grantees for 
     indirect costs, except as published in Office of Management 
     and Budget Circular A-21.
       Sec. 417. Such sums as may be necessary for fiscal year 
     1998 pay raises for programs funded by this Act shall be 
     absorbed within the levels appropriated in this Act.
       Sec. 418. None of the funds made available in this Act may 
     be used for any program, project, or activity, when it is 
     made known to the Federal entity or official to which the 
     funds are made available that the program, project, or 
     activity is not in compliance with any Federal law relating 
     to risk assessment, the protection of private property 
     rights, or unfunded mandates.
       Sec. 419. Corporations and agencies of the Department of 
     Housing and Urban Development which are subject to the 
     Government Corporation Control Act, as amended, are hereby 
     authorized to make such expenditures, within the limits of 
     funds and borrowing authority available to each such 
     corporation or agency and in accord with law, and to make 
     such contracts and commitments without regard to fiscal year 
     limitations as provided by section 104 of the Act as may be 
     necessary in carrying out the programs set forth in the 
     budget for 1998 for such corporation or agency except as 
     hereinafter provided: Provided, That collections of these 
     corporations and agencies may be used for new loan or 
     mortgage purchase commitments only to the extent expressly 
     provided for in this Act (unless such loans are in support of 
     other forms of assistance provided for in this or prior 
     appropriations Acts), except that this proviso shall not 
     apply to the mortgage insurance or guaranty operations of 
     these corporations, or where loans or mortgage purchases are 
     necessary to protect the financial interest of the United 
     States Government.
       Sec. 420. Notwithstanding section 320(g) of the Federal 
     Water Pollution Control Act (33 U.S.C. 1330(g)), funds made 
     available pursuant to authorization under such section for 
     fiscal year 1998 and prior fiscal years may be used for 
     implementing comprehensive conservation and management plans.
       Sec. 421. Such funds as may be necessary to carry out the 
     orderly termination of the Office of Consumer Affairs shall 
     be made available from funds appropriated to the Department 
     of Health and Human Services for fiscal year 1998.
       Sec. 422. Notwithstanding any other provision of law, the 
     term ``qualified student loan'' with respect to national 
     service education awards shall mean any loan made directly to 
     a student by the Alaska Commission on Postsecondary 
     Education, in addition to other meanings under section 
     148(b)(7) of the National and Community Service Act.

                TITLE V--HUD MULTIFAMILY HOUSING REFORM

     SEC. 501. TABLE OF CONTENTS.

       The table of contents for this title is as follows:

                TITLE V--HUD MULTIFAMILY HOUSING REFORM

Sec. 510. Short title.

   Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

Sec. 511. Findings and purposes.
Sec. 512. Definitions.
Sec. 513. Authority of participating administrative entities.
Sec. 514. Mortgage restructuring and rental assistance sufficiency 
              plan.
Sec. 515. Section 8 renewals and long-term affordability commitment by 
              owner of project.
Sec. 516. Prohibition on restructuring.
Sec. 517. Restructuring tools.
Sec. 518. Management standards.
Sec. 519. Monitoring of compliance.
Sec. 520. Reports to Congress.
Sec. 521. GAO audit and review.
Sec. 522. Regulations.
Sec. 523. Technical and conforming amendments.
Sec. 524. Section 8 contract renewals.

                  Subtitle B--Miscellaneous Provisions

Sec. 531. Rehabilitation grants for certain insured projects.
Sec. 532. GAO report on Section 8 rental assistance for multifamily 
              housing projects.

                   Subtitle C--Enforcement Provisions

Sec. 541. Implementation.
Sec. 542. Income verification.


           PART 1--FHA SINGLE FAMILY AND MULTIFAMILY HOUSING

Sec. 551. Authorization to immediately suspend mortgagees.
Sec. 552. Extension of equity skimming to other single family and 
              multifamily housing programs.
Sec. 553. Civil money penalties against mortgagees, lenders, and other 
              participants in FHA programs.


                   PART 2--FHA MULTIFAMILY PROVISIONS

Sec. 561. Civil money penalties against general partners, officers, 
              directors, and certain managing agents of multifamily 
              projects.
Sec. 562. Civil money penalties for noncompliance with Section 8 HAP 
              contracts.
Sec. 563. Extension of double damages remedy.
Sec. 564. Obstruction of Federal audits.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

Sec. 571. Establishment of Office of Multifamily Housing Assistance 
              Restructuring.
Sec. 572. Director.
Sec. 573. Duty and authority of Director.
Sec. 574. Personnel.
Sec. 575. Budget and financial reports.
Sec. 576. Limitation on subsequent employment.
Sec. 577. Audits by GAO.
Sec. 578. Suspension of program because of failure to appoint Director.
Sec. 579. Termination.

     SEC. 510. SHORT TITLE.

       This title may be cited as the ``Multifamily Assisted 
     Housing Reform and Affordability Act of 1997''.

   Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

     SEC. 511. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) there exists throughout the Nation a need for decent, 
     safe, and affordable housing;
       (2) as of the date of enactment of this Act, it is 
     estimated that--
       (A) the insured multifamily housing portfolio of the 
     Federal Housing Administration consists of 14,000 rental 
     properties, with an aggregate unpaid principal mortgage 
     balance of $38,000,000,000; and
       (B) approximately 10,000 of these properties contain 
     housing units that are assisted with project-based rental 
     assistance under section 8 of the United States Housing 
     Act of 1937;
       (3) FHA-insured multifamily rental properties are a major 
     Federal investment, providing affordable rental housing to an 
     estimated 2,000,000 low- and very low-income families;
       (4) approximately 1,600,000 of these families live in 
     dwelling units that are assisted with project-based rental 
     assistance under section 8 of the United States Housing Act 
     of 1937;
       (5) a substantial number of housing units receiving 
     project-based assistance have rents that are higher than the 
     rents of comparable, unassisted rental units in the same 
     housing rental market;
       (6) many of the contracts for project-based assistance will 
     expire during the several years following the date of 
     enactment of this Act;
       (7) it is estimated that--
       (A) if no changes in the terms and conditions of the 
     contracts for project-based assistance are made before fiscal 
     year 2000, the cost of renewing all expiring rental 
     assistance contracts under section 8 of the United States 
     Housing Act of 1937 for both project-based and tenant-based 
     rental assistance will increase from approximately 
     $3,600,000,000 in fiscal year 1997 to over $14,300,000,000 by 
     fiscal year 2000 and some $22,400,000,000 in fiscal year 
     2006;
       (B) of those renewal amounts, the cost of renewing project-
     based assistance will increase from $1,200,000,000 in fiscal 
     year 1997 to almost $7,400,000,000 by fiscal year 2006; and
       (C) without changes in the manner in which project-based 
     rental assistance is provided, renewals of expiring contracts 
     for project-based rental assistance will require an 
     increasingly larger portion of the discretionary budget 
     authority of the Department of Housing and Urban Development 
     in each subsequent fiscal year for the foreseeable future;
       (8) absent new budget authority for the renewal of expiring 
     rental contracts for project-based assistance, many of the 
     FHA-insured multifamily housing projects that are assisted 
     with project-based assistance are likely to default on their 
     FHA-insured mortgage payments, resulting in substantial 
     claims to the FHA General Insurance Fund and Special Risk 
     Insurance Fund;
       (9) more than 15 percent of federally assisted multifamily 
     housing projects are physically or financially distressed, 
     including a number which suffer from mismanagement;
       (10) due to Federal budget constraints, the downsizing of 
     the Department of Housing and Urban Development, and 
     diminished administrative capacity, the Department lacks the 
     ability to ensure the continued economic and physical well-
     being of the stock of federally insured and assisted 
     multifamily housing projects;
       (11) the economic, physical, and management problems facing 
     the stock of federally insured and assisted multifamily 
     housing projects will be best served by reforms that--
       (A) reduce the cost of Federal rental assistance, including 
     project-based assistance, to these projects by reducing the 
     debt service and operating costs of these projects while 
     retaining the low-income affordability and availability of 
     this housing;
       (B) address physical and economic distress of this housing 
     and the failure of some project managers and owners of 
     projects to comply with management and ownership rules and 
     requirements; and
       (C) transfer and share many of the loan and contract 
     administration functions and responsibilities of the 
     Secretary to and with capable State, local, and other 
     entities; and
       (12) the authority and duties of the Secretary, not 
     including the control by the Secretary of applicable accounts 
     in the Treasury of the United States, may be delegated to 
     State, local or other entities at the discretion of the 
     Secretary, to the extent the Secretary determines, and for 
     the purpose of carrying out this Act, so that the Secretary 
     has the discretion to be relieved of processing and approving 
     any document or action required by these reforms.
       (b) Purposes.--Consistent with the purposes and 
     requirements of the Government Performance and Results Act of 
     1993, the purposes of this subtitle are--
       (1) to preserve low-income rental housing affordability and 
     availability while reducing the long-term costs of project-
     based assistance;
       (2) to reform the design and operation of Federal rental 
     housing assistance programs, administered by the Secretary, 
     to promote greater multifamily housing project operating and 
     cost efficiencies;

[[Page H8335]]

       (3) to encourage owners of eligible multifamily housing 
     projects to restructure their FHA-insured mortgages and 
     project-based assistance contracts in a manner that is 
     consistent with this subtitle before the year in which the 
     contract expires;
       (4) to reduce the cost of insurance claims under the 
     National Housing Act related to mortgages insured by the 
     Secretary and used to finance eligible multifamily housing 
     projects;
       (5) to streamline and improve federally insured and 
     assisted multifamily housing project oversight and 
     administration;
       (6) to resolve the problems affecting financially and 
     physically troubled federally insured and assisted 
     multifamily housing projects through cooperation with 
     residents, owners, State and local governments, and other 
     interested entities and individuals;
       (7) to protect the interest of project owners and managers, 
     because they are partners of the Federal Government in 
     meeting the affordable housing needs of the Nation through 
     the section 8 rental housing assistance program;
       (8) to protect the interest of tenants residing in the 
     multifamily housing projects at the time of the restructuring 
     for the housing; and
       (9) to grant additional enforcement tools to use against 
     those who violate agreements and program requirements, in 
     order to ensure that the public interest is safeguarded and 
     that Federal multifamily housing programs serve their 
     intended purposes.

     SEC. 512. DEFINITIONS.

       In this subtitle:
       (1) Comparable properties.--The term ``comparable 
     properties'' means properties in the same market areas, where 
     practicable, that--
       (A) are similar to the eligible multifamily housing project 
     as to neighborhood (including risk of crime), type of 
     location, access, street appeal, age, property size, 
     apartment mix, physical configuration, property and unit 
     amenities, utilities, and other relevant characteristics; and
       (B) are not receiving project-based assistance.
       (2) Eligible multifamily housing project.--The term 
     ``eligible multifamily housing project'' means a property 
     consisting of more than 4 dwelling units--
       (A) with rents that, on an average per unit or per room 
     basis, exceed the rent of comparable properties in the same 
     market area, determined in accordance with guidelines 
     established by the Secretary;
       (B) that is covered in whole or in part by a contract for 
     project-based assistance under--
       (i) the new construction or substantial rehabilitation 
     program under section 8(b)(2) of the United States Housing 
     Act of 1937 (as in effect before October 1, 1983);
       (ii) the property disposition program under section 8(b) of 
     the United States Housing Act of 1937;
       (iii) the moderate rehabilitation program under section 
     8(e)(2) of the United States Housing Act of 1937;
       (iv) the loan management assistance program under section 8 
     of the United States Housing Act of 1937;
       (v) section 23 of the United States Housing Act of 1937 (as 
     in effect before January 1, 1975);
       (vi) the rent supplement program under section 101 of the 
     Housing and Urban Development Act of 1965; or
       (vii) section 8 of the United States Housing Act of 1937, 
     following conversion from assistance under section 101 of the 
     Housing and Urban Development Act of 1965; and
       (C) financed by a mortgage insured or held by the Secretary 
     under the National Housing Act.
       (3) Expiring contract.--The term ``expiring contract'' 
     means a project-based assistance contract attached to an 
     eligible multifamily housing project which, under the terms 
     of the contract, will expire.
       (4) Expiration date.--The term ``expiration date'' means 
     the date on which an expiring contract expires.
       (5) Fair market rent.--The term ``fair market rent'' means 
     the fair market rental established under section 8(c) of the 
     United States Housing Act of 1937.
       (6) Low-income families.--The term ``low-income families'' 
     has the same meaning as provided under section 3(b)(2) of the 
     United States Housing Act of 1937.
       (7) Mortgage restructuring and rental assistance 
     sufficiency plan.--The term ``mortgage restructuring and 
     rental assistance sufficiency plan'' means the plan as 
     provided under section 514.
       (8) Nonprofit organization.--The term ``nonprofit 
     organization'' means any private non-profit organization 
     that--
       (A) is organized under State or local laws;
       (B) has no part of its net earnings inuring to the benefit 
     of any member, founder, contributor, or individual; and
       (C) has a long-term record of service in providing or 
     financing quality affordable housing for low-income families 
     through relationships with public entities.
       (9) Portfolio restructuring agreement.--The term 
     ``Portfolio restructuring agreement'' means the agreement 
     entered into between the Secretary and a participating 
     administrative entity, as provided under section 513.
       (10) Participating administrative entity.--The term 
     ``participating administrative entity'' means a public agency 
     (including a State housing finance agency or a local housing 
     agency), a nonprofit organization, or any other entity 
     (including a law firm or an accounting firm) or a combination 
     of such entities, that meets the requirements under section 
     513(b).
       (11) Project-based assistance.--The term ``project-based 
     assistance'' means rental assistance described in paragraph 
     (2)(B) of this section that is attached to a multifamily 
     housing project.
       (12) Renewal.--The term ``renewal'' means the replacement 
     of an expiring Federal rental contract with a new contract 
     under section 8 of the United States Housing Act of 1937, 
     consistent with the requirements of this subtitle.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (14) State.--The term ``State'' has the same meaning as in 
     section 104 of the Cranston-Gonzalez National Affordable 
     Housing Act.
       (15) Tenant-based assistance.--The term ``tenant-based 
     assistance'' has the same meaning as in section 8(f) of the 
     United States Housing Act of 1937.
       (16) Unit of general local government.--The term ``unit of 
     general local government'' has the same meaning as in section 
     104 of the Cranston-Gonzalez National Affordable Housing Act.
       (17) Very low-income family.--The term ``very low-income 
     family'' has the same meaning as in section 3(b) of the 
     United States Housing Act of 1937.
       (18) Qualified mortgagee.--The term ``qualified mortgagee'' 
     means an entity approved by the Secretary that is capable of 
     servicing, as well as originating, FHA-insured mortgages, and 
     that--
       (A) is not suspended or debarred by the Secretary;
       (B) is not suspended or on probation imposed by the 
     Mortgagee Review Board; and
       (C) is not in default under any Government National 
     Mortgage Association obligation.

     SEC. 513. AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES.

       (a) Participating Administrative Entities.--
       (1) In general.--Subject to subsection (b)(3), the 
     Secretary shall enter into portfolio restructuring agreements 
     with participating administrative entities for the 
     implementation of mortgage restructuring and rental 
     assistance sufficiency plans to restructure multifamily 
     housing mortgages insured or held by the Secretary under the 
     National Housing Act, in order to--
       (A) reduce the costs of expiring contracts for assistance 
     under section 8 of the United States Housing Act of 1937;
       (B) address financially and physically troubled projects; 
     and
       (C) correct management and ownership deficiencies.
       (2) Portfolio restructuring agreements.--Each portfolio 
     restructuring agreement entered into under this subsection 
     shall--
       (A) be a cooperative agreement to establish the obligations 
     and requirements between the Secretary and the participating 
     administrative entity;
       (B) identify the eligible multifamily housing projects or 
     groups of projects for which the participating administrative 
     entity is responsible for assisting in developing and 
     implementing approved mortgage restructuring and rental 
     assistance sufficiency plans under section 514;
       (C) require the participating administrative entity to 
     review and certify to the accuracy and completeness of the 
     evaluation of rehabilitation needs required under section 
     514(e)(3) for each eligible multifamily housing project 
     included in the portfolio restructuring agreement, in 
     accordance with regulations promulgated by the Secretary;
       (D) identify the responsibilities of both the participating 
     administrative entity and the Secretary in implementing a 
     mortgage restructuring and rental assistance sufficiency 
     plan, including any actions proposed to be taken under 
     section 516 or 517;
       (E) require each mortgage restructuring and rental 
     assistance sufficiency plan to be prepared in accordance with 
     the requirements of section 514 for each eligible multifamily 
     housing project;
       (F) include other requirements established by the 
     Secretary, including a right of the Secretary to terminate 
     the contract immediately for failure of the participating 
     administrative entity to comply with any applicable 
     requirement;
       (G) if the participating administrative entity is a State 
     housing finance agency or a local housing agency, indemnify 
     the participating administrative entity against lawsuits and 
     penalties for actions taken pursuant to the agreement, 
     excluding actions involving willful misconduct or negligence;
       (H) include compensation for all reasonable expenses 
     incurred by the participating administrative entity necessary 
     to perform its duties under this subtitle; and
       (I) include, where appropriate, incentive agreements with 
     the participating administrative entity to reward superior 
     performance in meeting the purposes of this Act.
       (b) Selection of Participating Administrative Entity.--
       (1) Selection criteria.--The Secretary shall select a 
     participating administrative entity based on whether, in the 
     determination of the Secretary, the participating 
     administrative entity--
       (A) has demonstrated experience in working directly with 
     residents of low-income housing projects and with tenants and 
     other community-based organizations;
       (B) has demonstrated experience with and capacity for 
     multifamily restructuring and multifamily financing (which 
     may include risk-sharing arrangements and restructuring 
     eligible multifamily housing properties under the fiscal year 
     1997 Federal Housing Administration multifamily housing 
     demonstration program);
       (C) has a history of stable, financially sound, and 
     responsible administrative performance (which may include the 
     management of affordable low-income rental housing);
       (D) has demonstrated financial strength in terms of asset 
     quality, capital adequacy, and liquidity;
       (E) has demonstrated that it will carry out the specific 
     transactions and other responsibilities under this part in a 
     timely, efficient, and cost-effective manner; and
       (F) meets other criteria, as determined by the Secretary.

[[Page H8336]]

       (2) Selection.--If more than 1 interested entity meets the 
     qualifications and selection criteria for a participating 
     administrative entity, the Secretary may select the entity 
     that demonstrates, as determined by the Secretary, that it 
     will--
       (A) provide the most timely, efficient, and cost-
     effective--
       (i) restructuring of the mortgages covered by the portfolio 
     restructuring agreement; and
       (ii) administration of the section 8 project-based 
     assistance contract, if applicable; and
       (B) protect the public interest (including the long-term 
     provision of decent low-income affordable rental housing and 
     protection of residents, communities, and the American 
     taxpayer).
       (3) Partnerships.--For the purposes of any participating 
     administrative entity applying under this subsection, 
     participating administrative entities are encouraged to 
     develop partnerships with each other and with nonprofit 
     organizations, if such partnerships will further the 
     participating administrative entity's ability to meet the 
     purposes of this Act.
       (4) Alternative administrators.--With respect to any 
     eligible multifamily housing project for which a 
     participating administrative entity is unavailable, or should 
     not be selected to carry out the requirements of this 
     subtitle with respect to that multifamily housing project for 
     reasons relating to the selection criteria under paragraph 
     (1), the Secretary shall--
       (A) carry out the requirements of this subtitle with 
     respect to that eligible multifamily housing project; or
       (B) contract with other qualified entities that meet the 
     requirements of paragraph (1) to provide the authority to 
     carry out all or a portion of the requirements of this 
     subtitle with respect to that eligible multifamily housing 
     project.
       (5) Priority for public agencies as participating 
     administrative entities.--The Secretary shall provide a 
     reasonable period during which the Secretary will consider 
     proposals only from State housing finance agencies or local 
     housing agencies, and the Secretary shall select such an 
     agency without considering other applicants if the Secretary 
     determines that the agency is qualified. The period shall be 
     of sufficient duration for the Secretary to determine whether 
     any State housing financing agencies or local housing 
     agencies are interested and qualified. Not later than the end 
     of the period, the Secretary shall notify the State housing 
     finance agency or the local housing agency regarding the 
     status of the proposal and, if the proposal is rejected, the 
     reasons for the rejection and an opportunity for the 
     applicant to respond.
       (6) State and local portfolio requirements.--
       (A) In general.--If the housing finance agency of a State 
     is selected as the participating administrative entity, that 
     agency shall be responsible for such eligible multifamily 
     housing projects in that State as may be agreed upon by the 
     participating administrative entity and the Secretary. If a 
     local housing agency is selected as the participating 
     administrative entity, that agency shall be responsible for 
     such eligible multifamily housing projects in the 
     jurisdiction of the agency as may be agreed upon by the 
     participating administrative entity and the Secretary.
       (B) Nondelegation.--Except with the prior approval of the 
     Secretary, a participating administrative entity may not 
     delegate or transfer responsibilities and functions under 
     this subtitle to 1 or more entities.
       (7) Private entity requirements.--
       (A) In general.--If a for-profit entity is selected as the 
     participating administrative entity, that entity shall be 
     required to enter into a partnership with a public purpose 
     entity (including the Department).
       (B) Prohibition.--No private entity shall share, 
     participate in, or otherwise benefit from any equity created, 
     received, or restructured as a result of the portfolio 
     restructuring agreement.

     SEC. 514. MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE 
                   SUFFICIENCY PLAN.

       (a) In General.--
       (1) Development of procedures and requirements.--The 
     Secretary shall develop procedures and requirements for the 
     submission of a mortgage restructuring and rental assistance 
     sufficiency plan for each eligible multifamily housing 
     project with an expiring contract.
       (2) Terms and conditions.--Each mortgage restructuring and 
     rental assistance sufficiency plan submitted under this 
     subsection shall be developed by the participating 
     administrative entity, in cooperation with an owner of an 
     eligible multifamily housing project and any servicer for the 
     mortgage that is a qualified mortgagee, under such terms and 
     conditions as the Secretary shall require.
       (3) Consolidation.--Mortgage restructuring and rental 
     assistance sufficiency plans submitted under this subsection 
     may be consolidated as part of an overall strategy for more 
     than 1 property.
       (b) Notice Requirements.--The Secretary shall establish 
     notice procedures and hearing requirements for tenants and 
     owners concerning the dates for the expiration of project-
     based assistance contracts for any eligible multifamily 
     housing project.
       (c) Extension of Contract Term.--Subject to agreement by a 
     project owner, the Secretary may extend the term of any 
     expiring contract or provide a section 8 contract with rent 
     levels set in accordance with subsection (g) for a period 
     sufficient to facilitate the implementation of a mortgage 
     restructuring and rental assistance sufficiency plan, as 
     determined by the Secretary.
       (d) Tenant Rent Protection.--If the owner of a project with 
     an expiring Federal rental assistance contract does not agree 
     to extend the contract, not less than 12 months prior to 
     terminating the contract, the project owner shall provide 
     written notice to the Secretary and the tenants and the 
     Secretary shall make tenant-based assistance available to 
     tenants residing in units assisted under the expiring 
     contract at the time of expiration.
       (e) Mortgage Restructuring and Rental Assistance 
     Sufficiency Plan.--Each mortgage restructuring and rental 
     assistance sufficiency plan shall--
       (1) except as otherwise provided, restructure the project-
     based assistance rents for the eligible multifamily housing 
     project in a manner consistent with subsection (g), or 
     provide for tenant-based assistance in accordance with 
     section 515;
       (2) allow for rent adjustments by applying an operating 
     cost adjustment factor established under guidelines 
     established by the Secretary;
       (3) require the owner or purchaser of an eligible 
     multifamily housing project to evaluate the rehabilitation 
     needs of the project, in accordance with regulations of the 
     Secretary, and notify the participating administrative entity 
     of the rehabilitation needs;
       (4) require the owner or purchaser of the project to 
     provide or contract for competent management of the project;
       (5) require the owner or purchaser of the project to take 
     such actions as may be necessary to rehabilitate, maintain 
     adequate reserves, and to maintain the project in decent and 
     safe condition, based on housing quality standards 
     established by--
       (A) the Secretary; or
       (B) local housing codes or codes adopted by public housing 
     agencies that--
       (i) meet or exceed housing quality standards established by 
     the Secretary; and
       (ii) do not severely restrict housing choice;
       (6) require the owner or purchaser of the project to 
     maintain affordability and use restrictions in accordance 
     with regulations promulgated by the Secretary, for a term of 
     not less than 30 years which restrictions shall be--
       (A) contained in a legally enforceable document recorded in 
     the appropriate records; and
       (B) consistent with the long-term physical and financial 
     viability and character of the project as affordable housing;
       (7) include a certification by the participating 
     administrative entity that the restructuring meets subsidy 
     layering requirements established by the Secretary by 
     regulation for purposes of this subtitle;
       (8) require the owner or purchaser of the project to meet 
     such other requirements as the Secretary determines to be 
     appropriate; and
       (9) prohibit the owner from refusing to lease a reasonable 
     number of units to holders of certificates and vouchers under 
     section 8 of the United States Housing Act of 1937 because of 
     the status of the prospective tenants as certificate and 
     voucher holders.
       (f) Tenant and Other Participation and Capacity Building.--
       (1) Procedures.--
       (A) In general.--The Secretary shall establish procedures 
     to provide an opportunity for tenants of the project, 
     residents of the neighborhood, the local government, and 
     other affected parties to participate effectively and on a 
     timely basis in the restructuring process established by this 
     subtitle.
       (B) Coverage.--These procedures shall take into account the 
     need to provide tenants of the project, residents of the 
     neighborhood, the local government, and other affected 
     parties timely notice of proposed restructuring actions and 
     appropriate access to relevant information about 
     restructuring activities. To the extent practicable and 
     consistent with the need to accomplish project restructuring 
     in an efficient manner, the procedures shall give all such 
     parties an opportunity to provide comments to the 
     participating administrative entity in writing, in meetings, 
     or in another appropriate manner (which comments shall be 
     taken into consideration by the participating administrative 
     entity).
       (2) Required consultation.--The procedures developed 
     pursuant to paragraph (1) shall require consultation with 
     tenants of the project, residents of the neighborhood, the 
     local government, and other affected parties, in connection 
     with at least the following:
       (A) the mortgage restructuring and rental assistance 
     sufficiency plan;
       (B) any proposed transfer of the project; and
       (C) the rental assistance assessment plan pursuant to 
     section 515(c).
       (3) Funding.--
       (A) In general.--The Secretary may provide not more than 
     $10,000,000 annually in funding from which the Secretary may 
     make obligations to tenant groups, nonprofit organizations, 
     and public entities for building the capacity of tenant 
     organizations, for technical assistance in furthering any of 
     the purposes of this subtitle (including transfer of 
     developments to new owners) and for tenant services, from 
     those amounts made available under appropriations Acts for 
     implementing this subtitle or previously made available for 
     technical assistance in connection with the preservation of 
     affordable rental housing for low-income persons.
       (B) Manner of providing.--Notwithstanding any other 
     provision of law restricting the use of preservation 
     technical assistance funds, the Secretary may provide any 
     funds made available under subparagraph (A) through existing 
     technical assistance programs pursuant to any other Federal 
     law, including the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990 and the Multifamily 
     Property Disposition Reform Act of 1994, or through any other 
     means that the Secretary considers consistent with the 
     purposes of this subtitle, without regard to any set-aside 
     requirement otherwise applicable to those funds.
       (C) Prohibition.--None of the funds made available under 
     subparagraph (A) may be used directly or indirectly to pay 
     for any personal service, advertisement, telegram, telephone, 
     letter, printed or written matter, or other device,

[[Page H8337]]

     intended or designed to influence in any manner a Member of 
     Congress, to favor or oppose, by vote or otherwise, any 
     legislation or appropriation by Congress, whether before or 
     after the introduction of any bill or resolution proposing 
     such legislation or appropriation.
       (g) Rent Levels.--
       (1) In general.--Except as provided in paragraph (2), each 
     mortgage restructuring and rental assistance sufficiency plan 
     pursuant to the terms, conditions, and requirements of this 
     subtitle shall establish for units assisted with project-
     based assistance in eligible multifamily housing projects 
     adjusted rent levels that--
       (A) are equivalent to rents derived from comparable 
     properties, if--
       (i) the participating administrative entity makes the rent 
     determination within a reasonable period of time; and
       (ii) the market rent determination is based on not less 
     than 2 comparable properties; or
       (B) if those rents cannot be determined, are equal to 90 
     percent of the fair market rents for the relevant market 
     area.
       (2) Exceptions.--
       (A) In general.--A contract under this section may include 
     rent levels that exceed the rent level described in paragraph 
     (1) at rent levels that do not exceed 120 percent of the fair 
     market rent for the market area (except that the Secretary 
     may waive this limit for not more than five percent of all 
     units subject to restructured mortgages in any fiscal year, 
     based on a finding of special need), if the participating 
     administrative entity--
       (i) determines that the housing needs of the tenants and 
     the community cannot be adequately addressed through 
     implementation of the rent limitation required to be 
     established through a mortgage restructuring and rental 
     assistance sufficiency plan under paragraph (1); and
       (ii) follows the procedures under paragraph (3).
       (B) Exception rents.--In any fiscal year, a participating 
     administrative entity may approve exception rents on not more 
     than 20 percent of all units covered by the portfolio 
     restructuring agreement with expiring contracts in that 
     fiscal year, except that the Secretary may waive this ceiling 
     upon a finding of special need.
       (3) Rent levels for exception projects.--For purposes of 
     this section, a project eligible for an exception rent shall 
     receive a rent calculated based on the actual and projected 
     costs of operating the project, at a level that provides 
     income sufficient to support a budget-based rent that 
     consists of--
       (A) the debt service of the project;
       (B) the operating expenses of the project, as determined by 
     the participating administrative entity, including--
       (i) contributions to adequate reserves;
       (ii) the costs of maintenance and necessary rehabilitation; 
     and
       (iii) other eligible costs permitted under section 8 of the 
     United States Housing Act of 1937;
       (C) an adequate allowance for potential operating losses 
     due to vacancies and failure to collect rents, as determined 
     by the participating administrative entity;
       (D) an allowance for a reasonable rate of return to the 
     owner or purchaser of the project, as determined by the 
     participating administrative entity, which may be established 
     to provide incentives for owners or purchasers to meet 
     benchmarks of quality for management and housing quality; and
       (E) other expenses determined by the participating 
     administrative entity to be necessary for the operation of 
     the project.
       (h) Exemptions From Restructuring.--The following 
     categories of projects shall not be covered by a mortgage 
     restructuring and rental assistance sufficiency plan if--
       (1) the primary financing or mortgage insurance for the 
     multifamily housing project that is covered by that expiring 
     contract was provided by a unit of State government or a unit 
     of general local government (or an agency or instrumentality 
     of a unit of a State government or unit of general local 
     government);
       (2) the project is a project financed under section 202 of 
     the Housing Act of 1959 or section 515 of the Housing Act of 
     1949; or
       (3) the project has an expiring contract under section 8 of 
     the United States Housing Act of 1937 entered into pursuant 
     to section 441 of the Stewart B. McKinney Homeless Assistance 
     Act.

     SEC. 515. SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY 
                   COMMITMENT BY OWNER OF PROJECT.

       (a) Section 8 Renewals of Restructured Projects.--
       (1) Project-based assistance.--Subject to the availability 
     of amounts provided in advance in appropriations Acts, and to 
     the control of the Secretary of applicable accounts in the 
     Treasury of the United States, with respect to an expiring 
     section 8 contract on an eligible multifamily housing project 
     to be renewed with project-based assistance (based on a 
     determination under subsection (c)), the Secretary shall 
     enter into contracts with participating administrative 
     entities pursuant to which the participating administrative 
     entity shall offer to renew or extend the contract, or the 
     Secretary shall offer to renew such contract, and the owner 
     of the project shall accept the offer, if the initial renewal 
     is in accordance with the terms and conditions specified in 
     the mortgage restructuring and rental assistance sufficiency 
     plan and the rental assistance assessment plan.
       (2) Tenant-based assistance.--Subject to the availability 
     of amounts provided in advance in appropriations Acts and to 
     the control of the Secretary of applicable accounts in the 
     Treasury of the United States, with respect to an expiring 
     section 8 contract on an eligible multifamily housing project 
     to be renewed with tenant-based assistance (based on a 
     determination under subsection (c)), the Secretary shall 
     enter into contracts with participating administrative 
     entities pursuant to which the participating administrative 
     entity shall provide for the renewal of section 8 assistance 
     on an eligible multifamily housing project with tenant-based 
     assistance, or the Secretary shall provide for such renewal, 
     in accordance with the terms and conditions specified in the 
     mortgage restructuring and rental assistance sufficiency plan 
     and the rental assistance assessment plan.
       (b) Required Commitment.--After the initial renewal of a 
     section 8 contract pursuant to this section, the owner shall 
     accept each offer made pursuant to subsection (a) to renew 
     the contract, for the term of the affordability and use 
     restrictions required by section 514(e)(6), if the offer 
     to renew is on terms and conditions specified in the 
     mortgage restructuring and rental assistance sufficiency 
     plan.
       (c) Determination of Whether To Renew With Project-Based or 
     Tenant-Based Assistance.--
       (1) Mandatory renewal of project-based assistance.--Section 
     8 assistance shall be renewed with project-based assistance, 
     if--
       (A) the project is located in an area in which the 
     participating administrative entity determines, based on 
     housing market indicators, such as low vacancy rates or high 
     absorption rates, that there is not adequate available and 
     affordable housing or that the tenants of the project would 
     not be able to locate suitable units or use the tenant-based 
     assistance successfully;
       (B) a predominant number of the units in the project are 
     occupied by elderly families, disabled families, or elderly 
     and disabled families;
       (C) the project is held by a nonprofit cooperative 
     ownership housing corporation or nonprofit cooperative 
     housing trust.
       (2) Rental assistance assessment plan.--
       (A) In general.--With respect to any project that is not 
     described in paragraph (1), the participating administrative 
     entity shall, after consultation with the owner of the 
     project, develop a rental assistance assessment plan to 
     determine whether to renew assistance for the project with 
     tenant-based assistance or project-based assistance.
       (B) Rental assistance assessment plan requirements.--Each 
     rental assistance assessment plan developed under this 
     paragraph shall include an assessment of the impact of 
     converting to tenant-based assistance and the impact of 
     extending project-based assistance on--
       (i) the ability of the tenants to find adequate, available, 
     decent, comparable, and affordable housing in the local 
     market;
       (ii) the types of tenants residing in the project (such as 
     elderly families, disabled families, large families, and 
     cooperative homeowners);
       (iii) the local housing needs identified in the 
     comprehensive housing affordability strategy, and local 
     market vacancy trends;
       (iv) the cost of providing assistance, comparing the 
     applicable payment standard to the project's adjusted rent 
     levels determined under section 514(g);
       (v) the long-term financial stability of the project;
       (vi) the ability of residents to make reasonable choices 
     about their individual living situations;
       (vii) the quality of the neighborhood in which the tenants 
     would reside; and
       (viii) the project's ability to compete in the marketplace.
       (C) Reports to director.--Each participating administrative 
     entity shall report regularly to the Director as defined in 
     subtitle D, as the Director shall require, identifying--
       (i) each eligible multifamily housing project for which the 
     entity has developed a rental assistance assessment plan 
     under this paragraph that determined that the tenants of the 
     project generally supported renewal of assistance with 
     tenant-based assistance, but under which assistance for the 
     project was renewed with project-based assistance; and
       (ii) each project for which the entity has developed such a 
     plan under which the assistance is renewed using tenant-based 
     assistance.
       (3) Eligibility for tenant-based assistance.--Subject to 
     paragraph (4), with respect to any project that is not 
     described in paragraph (1), if a participating administrative 
     entity approves the use of tenant-based assistance based on a 
     rental assistance assessment plan developed under paragraph 
     (2), tenant-based assistance shall be provided to each 
     assisted family (other than a family already receiving 
     tenant-based assistance) residing in the project at the time 
     the assistance described in section 512(2)(B) terminates.
       (4) Rents for families receiving tenant-based assistance.--
       (A) In general.--Notwithstanding subsection (c)(1) or 
     (o)(1) of section 8 of the United States Housing Act of 1937, 
     in the case of any family described in paragraph (3) that 
     resides in a project described in section 512(2)(B) in which 
     the reasonable rent (which rent shall include any amount 
     allowed for utilities and shall not exceed comparable market 
     rents for the relevant housing market area) exceeds the fair 
     market rent limitation or the payment standard, as 
     applicable, the amount of assistance for the family shall be 
     determined in accordance with subparagraph (B).
       (B) Maximum monthly rent; payment standard.--With respect 
     to the certificate program under section 8(b) of the United 
     States Housing Act of 1937, the maximum monthly rent under 
     the contract (plus any amount allowed for utilities) shall be 
     such reasonable rent for the unit. With respect to the 
     voucher program under section 8(o) of the United States 
     Housing Act of 1937, the payment standard shall be deemed to 
     be such reasonable rent for the unit.
       (5) Inapplicability of certain provision.--If a 
     participating administrative entity approves renewal with 
     project-based assistance under this subsection, section 
     8(d)(2) of the United States Housing Act of 1937 shall not 
     apply.

[[Page H8338]]

     SEC. 516. PROHIBITION ON RESTRUCTURING.

       (a) Prohibition on Restructuring.--The Secretary may elect 
     not to consider any mortgage restructuring and rental 
     assistance sufficiency plan or request for contract renewal 
     if the Secretary or the participating administrative entity 
     determines that--
       (1)(A) the owner or purchaser of the project has engaged in 
     material adverse financial or managerial actions or omissions 
     with regard to such project; or
       (B) the owner or purchaser of the project has engaged in 
     material adverse financial or managerial actions or omissions 
     with regard to other projects of such owner or purchaser that 
     are federally-assisted or financed with a loan from, or 
     mortgage insured or guaranteed by, an agency of the Federal 
     government.
       (2) Material adverse financial or managerial actions or 
     omissions include--
       (A) materially violating any Federal, State, or local law 
     or regulation with regard to this project or any other 
     federally assisted project, after receipt of notice and an 
     opportunity to cure;
       (B) materially breaching a contract for assistance under 
     section 8 of the United States Housing Act of 1937, after 
     receipt of notice and an opportunity to cure;
       (C) materially violating any applicable regulatory or other 
     agreement with the Secretary or a participating 
     administrative entity, after receipt of notice and an 
     opportunity to cure;
       (D) repeatedly and materially violating any Federal, State, 
     or local law or regulation with regard to the project or any 
     other federally assisted project;
       (E) repeatedly and materially breaching a contract for 
     assistance under section 8 of the United States Housing Act 
     of 1937;
       (F) repeatedly and materially violating any applicable 
     regulatory or other agreement with the Secretary or a 
     participating administrative entity;
       (G) repeatedly failing to make mortgage payments at times 
     when project income was sufficient to maintain and operate 
     the property;
       (H) materially failing to maintain the property according 
     to housing quality standards after receipt of notice and a 
     reasonable opportunity to cure; or
       (I) committing any actions or omissions that would warrant 
     suspension or debarment by the Secretary;
       (3) the owner or purchaser of the property materially 
     failed to follow the procedures and requirements of this 
     part, after receipt of notice and an opportunity to cure; or
       (4) the poor condition of the project cannot be remedied in 
     a cost effective manner, as determined by the participating 
     administrative entity.
     The term ``owner'' as used in this subsection, in addition to 
     it having the same meaning as in section 8(f) of the United 
     States Housing Act of 1937, also means an affiliate of the 
     owner. The term ``purchaser'' as used in this subsection 
     means any private person or entity, including a cooperative, 
     an agency of the Federal Government, or a public housing 
     agency, that, upon purchase of the project, would have the 
     legal right to lease or sublease dwelling units in the 
     project, and also means an affiliate of the purchaser. The 
     terms ``affiliate of the owner'' and ``affiliate of the 
     purchaser'' means any person or entity (including, but not 
     limited to, a general partner or managing member, or an 
     officer of either) that controls an owner or purchaser, is 
     controlled by an owner or purchaser, or is under common 
     control with the owner or purchaser. The term ``control'' 
     means the direct or indirect power (under contract, equity 
     ownership, the right to vote or determine a vote, or 
     otherwise) to direct the financial legal, beneficial or other 
     interests of the owner or purchaser.
       (b) Opportunity To Dispute Findings.--
       (1) In general.--During the 30-day period beginning on the 
     date on which the owner or purchaser of an eligible 
     multifamily housing project receives notice of a rejection 
     under subsection (a) or of a mortgage restructuring and 
     rental assistance sufficiency plan under section 514, the 
     Secretary or participating administrative entity shall 
     provide that owner or purchaser with an opportunity to 
     dispute the basis for the rejection and an opportunity to 
     cure.
       (2) Affirmation, modification, or reversal.--
       (A) In general.--After providing an opportunity to dispute 
     under paragraph (1), the Secretary or the participating 
     administrative entity may affirm, modify, or reverse any 
     rejection under subsection (a) or rejection of a mortgage 
     restructuring and rental assistance sufficiency plan under 
     section 514.
       (B) Reasons for decision.--The Secretary or the 
     participating administrative entity, as applicable, shall 
     identify the reasons for any final decision under this 
     paragraph.
       (C) Review process.--The Secretary shall establish an 
     administrative review process to appeal any final decision 
     under this paragraph.
       (c) Final Determination.--Any final determination under 
     this section shall not be subject to judicial review.
       (d) Displaced Tenants.--Subject to the availability of 
     amounts provided in advance in appropriations Acts, for any 
     low-income tenant that is residing in a project or receiving 
     assistance under section 8 of the United States Housing Act 
     of 1937 at the time of rejection under this section, that 
     tenant shall be provided with tenant-based assistance and 
     reasonable moving expenses, as determined by the Secretary.
       (e) Transfer of Property.--For properties disqualified from 
     the consideration of a mortgage restructuring and rental 
     assistance sufficiency plan under this section in accordance 
     with paragraph (1) or (2) of subsection (a) because of 
     actions by an owner or purchaser, the Secretary shall 
     establish procedures to facilitate the voluntary sale or 
     transfer of a property as part of a mortgage restructuring 
     and rental assistance sufficiency plan, with a preference for 
     tenant organizations and tenant-endorsed community-based 
     nonprofit and public agency purchasers meeting such 
     reasonable qualifications as may be established by the 
     Secretary.

     SEC. 517. RESTRUCTURING TOOLS.

       (a) Mortgage Restructuring.--
       (1) In this part, an approved mortgage restructuring and 
     rental assistance sufficiency plan shall include 
     restructuring mortgages in accordance with this subsection to 
     provide--
       (A) a restructured or new first mortgage that is 
     sustainable at rents at levels that are established in 
     section 514(g); and
       (B) a second mortgage that is in an amount equal to no more 
     than the difference between the restructured or new first 
     mortgage and the indebtedness under the existing insured 
     mortgage immediately before it is restructured or refinanced, 
     provided that the amount of the second mortgage shall be in 
     an amount that the Secretary or participating administrative 
     entity determines can reasonably be expected to be repaid.
       (2) The second mortgage shall bear interest at a rate not 
     to exceed the applicable Federal rate as defined in section 
     1274(d) of the Internal Revenue Code of 1986. The term of the 
     second mortgage shall be equal to the term of the 
     restructured or new first mortgage.
       (3) Payments on the second mortgage shall be deferred when 
     the first mortgage remains outstanding, except to the extent 
     there is excess project income remaining after payment of all 
     reasonable and necessary operating expenses (including 
     deposits in a reserve for replacement), debt service on the 
     first mortgage, and any other expenditures approved by the 
     Secretary. At least 75 percent of any excess project income 
     shall be applied to payments on the second mortgage, and the 
     Secretary or the participating administrative entity may 
     permit up to 25 percent to be paid to the project owner if 
     the Secretary or participating administrative entity 
     determines that the project owner meets benchmarks for 
     management and housing quality.
       (4) The full amount of the second mortgage shall be 
     immediately due and payable if--
       (A) the first mortgage is terminated or paid in full, 
     except as otherwise provided by the holder of the second 
     mortgage;
       (B) the project is purchased and the second mortgage is 
     assumed by any subsequent purchaser in violation of 
     guidelines established by the Secretary; or
       (C) the Secretary provides notice to the project owner that 
     such owner has failed to materially comply with any 
     requirements of this section or the United States Housing Act 
     of 1937 as those requirements apply to the project, with a 
     reasonable opportunity for such owner to cure such failure.
       (5) The Secretary may modify the terms or forgive all or 
     part of the second mortgage if the Secretary holds the second 
     mortgage and if the project is acquired by a tenant 
     organization or tenant-endorsed community-based nonprofit or 
     public agency, pursuant to guidelines established by the 
     Secretary.
       (b) Restructuring Tools.--In addition to the requirements 
     of subsection (a) and to the extent these actions are 
     consistent with this section and with the control of the 
     Secretary of applicable accounts in the Treasury of the 
     United States, an approved mortgage restructuring and rental 
     assistance sufficiency plan under this subtitle may include 1 
     or more of the following actions:
       (1) Full or partial payment of claim.--Making a full 
     payment of claim or partial payment of claim under section 
     541(b) of the National Housing Act, as amended by section 
     523(b) of this Act. Any payment under this paragraph shall 
     not require the approval of a mortgagee.
       (2) Refinancing of debt.--Refinancing of all or part of the 
     debt on a project. If the refinancing involves a mortgage 
     that will continue to be insured under the National Housing 
     Act, the refinancing shall be documented through amendment of 
     the existing insurance contract and not through a new 
     insurance contract.
       (3) Mortgage insurance.--Providing FHA multifamily mortgage 
     insurance, reinsurance or other credit enhancement 
     alternatives, including multifamily risk-sharing mortgage 
     programs, as provided under section 542 of the Housing and 
     Community Development Act of 1992. Any limitations on the 
     number of units available for mortgage insurance under 
     section 542 shall not apply to eligible multifamily 
     housing projects. Any credit subsidy costs of providing 
     mortgage insurance shall be paid from the Liquidating 
     Account of the General Insurance Fund or the Special Risk 
     Insurance Fund and shall not be subject to any limitation 
     on appropriations.
       (4) Credit enhancement.--Any additional State or local 
     mortgage credit enhancements and risk-sharing arrangements 
     may be established with State or local housing finance 
     agencies, the Federal Housing Finance Board, the Federal 
     National Mortgage Association, and the Federal Home Loan 
     Mortgage Corporation, to a modified or refinanced first 
     mortgage.
       (5) Compensation of third parties.--Consistent with the 
     portfolio restructuring agreement, entering into agreements, 
     incurring costs, or making payments, including incentive 
     agreements designed to reward superior performance in meeting 
     the purposes of this Act, as may be reasonably necessary, to 
     compensate the participation of participating administrative 
     entities and other parties in undertaking actions authorized 
     by this subtitle. Upon request to the Secretary, 
     participating administrative entities that are qualified 
     under the United States Housing Act of 1937 to serve as 
     contract administrators shall be the contract administrators 
     under section 8 of the United States Housing Act of 1937 for 
     purposes of any contracts entered into

[[Page H8339]]

     as part of an approved mortgage restructuring and rental 
     assistance sufficiency plan. Subject to the availability 
     of amounts provided in advance in appropriations Acts for 
     administrative fees under section 8 of the United States 
     Housing Act of 1937, such amounts may be used to 
     compensate participating administrative entities for 
     compliance monitoring costs incurred under section 519.
       (6) Use of project accounts.--Applying any residual 
     receipts, replacement reserves, and any other project 
     accounts not required for project operations, to maintain the 
     long-term affordability and physical condition of the 
     property or of other eligible multifamily housing projects. 
     The participating administrative entity may expedite the 
     acquisition of residual receipts, replacement reserves, or 
     other such accounts, by entering into agreements with owners 
     of housing covered by an expiring contract to provide an 
     owner with a share of the receipts, not to exceed 10 percent, 
     in accordance with guidelines established by the Secretary.
       (7) Rehabilitation needs.--
       (A) In general.--Assisting in addressing the rehabilitation 
     needs of the project. Rehabilitation may be paid from the 
     residual receipts, replacement reserves, or any other project 
     accounts not required for project operations, or, as provided 
     in appropriations Acts and subject to the control of the 
     Secretary of applicable accounts in the Treasury of the 
     United States, from budget authority provided for increases 
     in the budget authority for assistance contracts under 
     section 8 of the United States Housing Act of 1937, the 
     rehabilitation grant program established under section 236(s) 
     of the National Housing Act, or through the debt 
     restructuring transaction. Rehabilitation under this 
     paragraph shall only be for the purpose of restoring the 
     project to a non-luxury standard adequate for the rental 
     market intended at the original approval of the project-based 
     assistance.
       (B) Contribution.--Each owner or purchaser of a project to 
     be rehabilitated under an approved mortgage restructuring and 
     rental assistance sufficiency plan shall contribute, from 
     non-project resources, not less than 25 percent of the amount 
     of rehabilitation assistance received, except that the 
     participating administrative entity may provide an exception 
     from the requirement of this subparagraph for housing 
     cooperatives.
       (c) Role of FNMA and FHLMC.--Section 1335 of the Federal 
     Housing Enterprises Financial Safety and Soundness Act of 
     1992 (12 U.S.C. 4565) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) paragraph (4), by striking the period at the end and 
     inserting ``; and'';
       (3) by striking ``To meet'' and inserting the following:
       ``(a) In General.--To meet''; and
       (4) by adding at the end the following:
       ``(5) assist in maintaining the affordability of assisted 
     units in eligible multifamily housing projects with expiring 
     contracts, as defined under the Multifamily Assisted Housing 
     Reform and Affordability Act of 1997.
       ``(b) Affordable Housing Goals.--Actions taken under 
     subsection (a)(5) shall constitute part of the contribution 
     of each entity in meeting its affordable housing goals under 
     sections 1332, 1333, and 1334 for any fiscal year, as 
     determined by the Secretary.''.
       (d) Prohibition on Equity Sharing by the Secretary.--The 
     Secretary is prohibited from participating in any equity 
     agreement or profit-sharing agreement in conjunction with any 
     eligible multifamily housing project.
       (e) Conflict of Interest Guidelines.--The Secretary may 
     establish guidelines to prevent conflicts of interest by a 
     participating administrative entity that provides, directly 
     or through risk-sharing arrangements, any form of credit 
     enhancement or financing pursuant to subsections (b)(3) or 
     (b)(4) or to prevent conflicts of interest by any other 
     person or entity under this subtitle.

     SEC. 518. MANAGEMENT STANDARDS.

       Each participating administrative entity shall establish 
     management standards, including requirements governing 
     conflicts of interest between owners, managers, contractors 
     with an identity of interest, pursuant to guidelines 
     established by the Secretary and consistent with industry 
     standards.

     SEC. 519. MONITORING OF COMPLIANCE.

       (a) Compliance Agreements.--(1) Pursuant to regulations 
     issued by the Secretary under section 522(a), each 
     participating administrative entity, through binding 
     contractual agreements with owners and otherwise, shall 
     ensure long-term compliance with the provisions of this 
     subtitle. Each agreement shall, at a minimum, provide for--
       (A) enforcement of the provisions of this subtitle; and
       (B) remedies for the breach of those provisions.
       (2) If the participating administrative entity is not 
     qualified under the United States Housing Act of 1937 to be a 
     section 8 contract administrator or fails to perform its 
     duties under the portfolio restructuring agreement, the 
     Secretary shall have the right to enforce the agreement.
       (b) Periodic Monitoring.--
       (1) In general.--Not less than annually, each participating 
     administrative entity that is qualified to be the section 8 
     contract administrator shall review the status of all 
     multifamily housing projects for which a mortgage 
     restructuring and rental assistance sufficiency plan has been 
     implemented.
       (2) Inspections.--Each review under this subsection shall 
     include onsite inspection to determine compliance with 
     housing codes and other requirements as provided in this 
     subtitle and the portfolio restructuring agreements.
       (3) Administration.--If the participating administrative 
     entity is not qualified under the United States Housing Act 
     of 1937 to be a section 8 contract administrator, either the 
     Secretary or a qualified State or local housing agency shall 
     be responsible for the review required by this subsection.
       (c) Audit by the Secretary.--The Comptroller General of the 
     United States, the Secretary, and the Inspector General of 
     the Department of Housing and Urban Development may conduct 
     an audit at any time of any multifamily housing project for 
     which a mortgage restructuring and rental assistance 
     sufficiency plan has been implemented.

     SEC. 520. REPORTS TO CONGRESS.

       (a) Annual Review.--In order to ensure compliance with this 
     subtitle, the Secretary shall conduct an annual review and 
     report to the Congress on actions taken under this subtitle 
     and the status of eligible multifamily housing projects.
       (b) Semiannual Review.--Not less than semiannually during 
     the 2-year period beginning on the date of the enactment of 
     this Act and not less than annually thereafter, the Secretary 
     shall submit reports to the Committee on Banking and 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate stating, for such periods, the total number of 
     projects identified by participating administrative entities 
     under each of clauses (i) and (ii) of subparagraph (C).

     SEC. 521. GAO AUDIT AND REVIEW.

       (a) Initial Audit.--Not later than 18 months after the 
     effective date of final regulations promulgated under this 
     part, the Comptroller General of the United States shall 
     conduct an audit to evaluate eligible multifamily housing 
     projects and the implementation of mortgage restructuring 
     and rental assistance sufficiency plans.
       (b) Report.--
       (1) In general.--Not later than 18 months after the audit 
     conducted under subsection (a), the Comptroller General of 
     the United States shall submit to Congress a report on the 
     status of eligible multifamily housing projects and the 
     implementation of mortgage restructuring and rental 
     assistance sufficiency plans.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) a description of the initial audit conducted under 
     subsection (a); and
       (B) recommendations for any legislative action to increase 
     the financial savings to the Federal Government of the 
     restructuring of eligible multifamily housing projects 
     balanced with the continued availability of the maximum 
     number of affordable low-income housing units.

     SEC. 522. REGULATIONS.

       (a) Rulemaking and Implementation.--
       (1) Interim regulations.--The Director shall issue such 
     interim regulations as may be necessary to implement this 
     subtitle and the amendments made by this subtitle with 
     respect to eligible multifamily housing projects covered by 
     contracts described in section 512(2)(B) that expire in 
     fiscal year 1999 or thereafter. If, before the expiration of 
     such period, the Director has not been appointed, the 
     Secretary shall issue such interim regulations.
       (2) Final regulations.--The Director shall issue final 
     regulations necessary to implement this subtitle and the 
     amendments made by this subtitle with respect to eligible 
     multifamily housing projects covered by contracts described 
     in section 512(2)(B) that expire in fiscal year 1999 or 
     thereafter before the later of (A) the expiration of the 12-
     month period beginning upon the date of the enactment of this 
     Act, and (B) the 3-month period beginning upon the 
     appointment of the Director under subtitle B.
       (3) Factors for consideration.--Before the publication of 
     the final regulations under paragraph (2), in addition to 
     public comments invited in connection with publication of the 
     interim rule, the Secretary shall--
       (A) seek recommendations on the implementation of sections 
     513(b) and 515(c)(1) from organizations representing--
       (i) State housing finance agencies and local housing 
     agencies;
       (ii) other potential participating administering entities;
       (iii) tenants;
       (iv) owners and managers of eligible multifamily housing 
     projects;
       (v) States and units of general local government; and
       (vi) qualified mortgagees; and
       (B) convene not less than 3 public forums at which the 
     organizations making recommendations under subparagraph (A) 
     may express views concerning the proposed disposition of the 
     recommendations.
       (b) Transition Provision for Contracts Expiring in Fiscal 
     Year 1998.--Notwithstanding any other provision of law, the 
     Secretary shall apply all the terms of section 211 and 
     section 212 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (except for section 212(h)(1)(G) and 
     the limitation in section 212(k)) contracts for project-based 
     assistance that expire during fiscal year 1998 (in the same 
     manner that such provisions apply to expiring contracts 
     defined in section 212(a)(3) of such Act), except that 
     section 517(a) of the Act shall apply to mortgages on 
     projects subject to such contracts.

     SEC. 523. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Calculation of Limit on Project-Based Assistance.--
     Section 8(d) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(d)) is amended by adding at the end the 
     following:
       ``(5) Calculation of limit.--Any contract entered into 
     under section 514 of the Multifamily Assisted Housing Reform 
     and Affordability Act of 1997 shall be excluded in computing 
     the limit on project-based assistance under this 
     subsection.''.

[[Page H8340]]

       (b) Partial Payment of Claims on Multifamily Housing 
     Projects.--Section 541 of the National Housing Act (12 U.S.C. 
     1735f-19) is amended--
       (1) in subsection (a), in the subsection heading, by 
     striking ``Authority'' and inserting ``Defaulted Mortgages'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Existing Mortgages.--Notwithstanding any other 
     provision of law, the Secretary, in connection with a 
     mortgage restructuring under section 514 of the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997, may 
     make a 1 time, nondefault partial payment of the claim under 
     the mortgage insurance contract, which shall include a 
     determination by the Secretary or the participating 
     administrative entity, in accordance with the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997, of the 
     market value of the project and a restructuring of the 
     mortgage, under such terms and conditions as are permitted by 
     section 517(a) of such Act.''.
       (c) Reuse and Rescission of Certain Recaptured Budget 
     Authority.--Section 8(bb) of the United States Housing Act of 
     1937 (42 U.S.C. 1437f(bb) is amended--
       (1) by inserting after ``(bb)'' the following: ``Transfer, 
     Reuse, and Rescission of Budget Authority.--(1)''; and
       (2) by inserting the following new paragraph at the end:
       ``(2) Reuse and Rescission of Certain Recaptured Budget 
     Authority.--Notwithstanding paragraph (1), if a project-based 
     assistance contract for an eligible multifamily housing 
     project subject to actions authorized under title I is 
     terminated or amended as part of restructuring under section 
     517 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997, the Secretary shall recapture the 
     budget authority not required for the terminated or amended 
     contract and use such amounts as are necessary to provide 
     housing assistance for the same number of families covered by 
     such contract for the remaining term of such contract, under 
     a contract providing for project-based or tenant-based 
     assistance. The amount of budget authority saved as a result 
     of the shift to project-based or tenant-based assistance 
     shall be rescinded.''.
       (d) Section 8 Contract Renewals.--Section 405(a) of the 
     Balanced Budget Downpayment Act, I (42 U.S.C. 1437f note) is 
     amended by striking ``For'' and inserting ``Notwithstanding 
     part 24 of title 24 of the Code of Federal Regualtions, 
     for''.
       (e) Renewal Upon Request of Owner.--Section 211(b)(3) of 
     the Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1997 (Public Law 104-204; 110 Stat. 2896) is amended--
       (1) by striking the paragraph heading and inserting the 
     following:
       ``(3) Exemption of certain other projects.--''; and
       (2) by striking ``section 202 projects, section 811 
     projects and section 515 projects'' and inserting ``section 
     202 projects, section 515 projects, projects with contracts 
     entered into pursuant to section 441 of the Stewart B. 
     McKinney Homeless Assistance Act, and projects with rents 
     that exceed 100 percent of fair market rent for the market 
     area, but that are less than rents for comparable projects''.
       (f) Extension of Demonstration Contract Period.--Section 
     212(g) of the Departments of Veterans Affairs and Housing and 
     Urban Development, and Independent Agencies Appropriations 
     Act, 1997 (Public Law 104-204) is amended--
       (1) by inserting ``(1)'' after ``(g)'';
       (2) by inserting before the period at the end the 
     following: ``or in paragraph (2)''; and
       (3) by adding at the end the following:
       ``(2) The Secretary may renew a demonstration contract for 
     an additional period of not to exceed 120 days, if--
       ``(A) the contract was originally executed before February 
     1, 1997, and the Secretary determines, in the sole discretion 
     of the Secretary, that the renewal period for the contract 
     needs to exceed 1 year, due to delay of publication of the 
     Secretary's demonstration program guidelines until January 
     23, 1997 (not to exceed 21 projects); or
       ``(B) the contract was originally executed before October 
     1, 1997, in connection with a project that has been 
     identified for restructuring under the joint venture approach 
     described in section VII.B.2. of the Secretary's 
     demonstration program guidelines, and the Secretary 
     determines, in the sole discretion of the Secretary, that the 
     renewal period for the contract needs to exceed 1 year, due 
     to delay in implementation of the joint venture agreement 
     required by the guidelines (not to exceed 25 projects).''.

     SEC. 524. SECTION 8 CONTRACT RENEWALS.

       (a) Section 8 Contract Renewal Authority.--
       (1)  In General.--Notwithstanding part 24 of title 24 of 
     the Code of Federal Regulations and subject to section 516 of 
     this subtitle, for fiscal year 1999 and henceforth, the 
     Secretary may use amounts available for the renewal of 
     assistance under section 8 of the United States Housing Act 
     of 1937, upon termination or expiration of a contract for 
     assistance under section 8 (other than a contract for tenant-
     based assistance and notwithstanding section 8(v) of such Act 
     for loan management assistance), to provide assistance under 
     section 8 of such Act at rent levels that do not exceed 
     comparable market rents for the market area. The assistance 
     shall be provided in accordance with terms and conditions 
     prescribed by the Secretary.
       (2) Exception Projects.--Notwithstanding paragraph (1), 
     upon the request of the owner, the Secretary shall renew an 
     expiring contract in accordance with terms and conditions 
     prescribed by the Secretary at the lesser of (i) existing 
     rents, adjusted by an operating cost, adjustment factor 
     established by the Secretary, (ii) a level that provides 
     income sufficient to support a budget-based rent (including a 
     budget-based rent adjustment if justified by reasonable and 
     expected operating expenses), or (iii) in the case of a 
     contract under the moderate rehabilitation program, other 
     than a moderate rehabilitation contract under section 441 of 
     the Stewart B. McKinney Homeless Assistance Act, the base 
     rent adjusted by an operating cost adjustment factor 
     established by the Secretary, for the following categories of 
     multifamily housing projects--
       (A) projects for which the primary financing or mortgage 
     insurance was provided by a unit of State government or a 
     unit of general local government (or an agency or 
     instrumentality of either) and is not insured under the 
     National Housing Act;
       (B) projects for which the primary financing was provided 
     by a unit of State government or a unit or general local 
     government (or an agency or instrumentality of either) and 
     the financing involves mortgage insurance under the National 
     Housing Act, such that the implementation of a mortgage 
     restructuring and rental assistance sufficiency plan under 
     this Act is in conflict with applicable law or agreements 
     governing such financing;
       (C) projects financed under section 202 of the Housing Act 
     of 1959 or section 515 of the Housing Act of 1949;
       (D) projects that have an expiring contract under section 8 
     of the United States Housing Act of 1937 pursuant to section 
     441 of the Stewart B. McKinney Homeless Assistance Act; and
       (E) projects that do not qualify as eligible multifamily 
     housing projects pursuant to section 512(2) of this subtitle.

                  Subtitle B--Miscellaneous Provisions

     SEC. 531. REHABILITATION GRANTS FOR CERTAIN INSURED PROJECTS.

       Section 236 of the National Housing Act (12 U.S.C. 1715z-1) 
     is amended by adding at the end the following:
       ``(s) Grant Authority.--
       ``(1) In general.--The Secretary may make grants for the 
     capital costs of rehabilitation to owners of projects that 
     meet the eligibility and other criteria set forth in, and in 
     accordance with, this subsection.
       ``(2) Project eligibility.--A project may be eligible for 
     capital grant assistance under this subsection--
       ``(A) if--
       ``(i) the project is or was insured under any provision of 
     title II of the National Housing Act;
       ``(ii) the project was assisted under section 8 of the 
     United States Housing Act of 1937 on the date of enactment of 
     the Multifamily Assisted Housing Reform and Affordability Act 
     of 1997; and
       ``(iii) the project mortgage was not held by a State agency 
     as of the date of enactment of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997;
       ``(B) if the project owner agrees to maintain the housing 
     quality standards as required by the Secretary;
       ``(C)(i) if the Secretary determines that the owner or 
     purchaser of the project has not engaged in material adverse 
     financial or managerial actions or omissions with regard to 
     such project; or
       ``(ii) if the Secretary elects to make such determination, 
     that the owner or purchaser of the project has not engaged in 
     material adverse financial or managerial actions or omissions 
     with regard to other projects of such owner or purchaser that 
     are federally-assisted or financed with a loan from, or 
     mortgage insured or guaranteed by, an agency of the Federal 
     government;
       ``(iii) material adverse financial or managerial actions or 
     omissions, as the terms are used in this subparagraph, 
     include--
       ``(I) materially violating any Federal, State, or local law 
     or regulation with regard to this project or any other 
     federally assisted project, after receipt of notice and an 
     opportunity to cure;
       ``(II) materially breaching a contract for assistance under 
     section 8 of the United States Housing Act of 1937, after 
     receipt of notice and an opportunity to cure;
       ``(III) materially violating any applicable regulatory or 
     other agreement with the Secretary or a participating 
     administrative entity, after receipt of notice and an 
     opportunity to cure;
       ``(IV) repeatedly failing to make mortgage payments at 
     times when project income was sufficient to maintain and 
     operate the property;
       ``(V) materially failing to maintain the property according 
     to housing quality standards after receipt of notice and a 
     reasonable opportunity to cure; or
       ``(VI) committing any act or omission that would warrant 
     suspension or debarment by the Secretary; and
       ``(iv) the term `owner' as used in this subparagraph, in 
     addition to it having the same meaning as in section 8(f) of 
     the United States Housing Act of 1937, also means an 
     affiliate of the owner; the term `purchaser' as used in this 
     subsection means any private person or entity, including a 
     cooperative, an agency of the Federal Government, or a public 
     housing agency, that, upon purchase of the project, would 
     have the legal right to lease or sublease dwelling units in 
     the project, and also means an affiliate of the purchaser; 
     the terms `affiliate of the owner' and `affiliate of the 
     purchaser' means any person or entity (including, but not 
     limited to, a general partner or managing member, or an 
     officer of either) that controls an owner or purchaser, is 
     controlled by an owner or purchaser, or is under

[[Page H8341]]

     common control with the owner or purchaser; the term 
     `control' means the direct or indirect power (under 
     contract, equity ownership, the right to vote or determine 
     a vote, or otherwise) to direct the financial legal, 
     beneficial or other interests of the owner or purchaser; 
     and
       ``(D) if the project owner demonstrates to the satisfaction 
     of the Secretary--
       ``(i) using information in a comprehensive needs 
     assessment, that capital grant assistance is needed for 
     rehabilitation of the project; and
       ``(ii) that project income is not sufficient to support 
     such rehabilitation.
       ``(3) Eligible purposes.--The Secretary may make grants to 
     the owners of eligible projects for the purposes of--
       ``(A) payment into project replacement reserves;
       ``(B) debt service payments on non-Federal rehabilitation 
     loans; and
       ``(C) payment of nonrecurring maintenance and capital 
     improvements, under such terms and conditions as are 
     determined by the Secretary.
       ``(4) Grant agreement.--
       ``(A) In general.--The Secretary shall provide in any grant 
     agreement under this subsection that the grant shall be 
     terminated if the project fails to meet housing quality 
     standards, as applicable on the date of enactment of the 
     Multifamily Assisted Housing Reform and Affordability Act 
     of 1997, or any successor standards for the physical 
     conditions of projects, as are determined by the 
     Secretary.
       ``(B) Affordability and use clauses.--The Secretary shall 
     include in a grant agreement under this subsection a 
     requirement for the project owners to maintain such 
     affordability and use restrictions as the Secretary 
     determines to be appropriate.
       ``(C) Other terms.--The Secretary may include in a grant 
     agreement under this subsection such other terms and 
     conditions as the Secretary determines to be necessary.
       ``(5) Delegation.--
       ``(A) In general.--In addition to the authorities set forth 
     in subsection (p), the Secretary may delegate to State and 
     local governments the responsibility for the administration 
     of grants under this subsection. Any such government may 
     carry out such delegated responsibilities directly or under 
     contracts.
       ``(B) Administration costs.--In addition to other eligible 
     purposes, amounts of grants under this subsection may be made 
     available for costs of administration under subparagraph (A).
       ``(6) Funding.--
       ``(A) In general.--For purposes of carrying out this 
     subsection, the Secretary may make available amounts that are 
     unobligated amounts for contracts for interest reduction 
     payments--
       ``(i) that were previously obligated for contracts for 
     interest reduction payments under this section until the 
     insured mortgage under this section was extinguished;
       ``(ii) that become available as a result of the outstanding 
     principal balance of a mortgage having been written down;
       ``(iii) that are uncommitted balances within the limitation 
     on maximum payments that may have been, before the date of 
     enactment of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997, permitted in any fiscal year; or
       ``(iv) that become available from any other source.
       ``(B) Liquidation authority.--The Secretary may liquidate 
     obligations entered into under this subsection under section 
     1305(10) of title 31, United States Code.
       ``(C) Capital grants.--In making capital grants under the 
     terms of this subsection, using the amounts that the 
     Secretary has recaptured from contracts for interest 
     reduction payments, the Secretary shall ensure that the rates 
     and amounts of outlays do not at any time exceed the rates 
     and amounts of outlays that would have been experienced if 
     the insured mortgage had not been extinguished or the 
     principal amount had not been written down, and the interest 
     reduction payments that the Secretary has recaptured had 
     continued in accordance with the terms in effect immediately 
     prior to such extinguishment or write-down.''.

     SEC. 532. GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR 
                   MULTIFAMILY HOUSING PROJECTS.

       Not later than the expiration of the 18-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General of the United States shall submit a 
     report to the Congress analyzing--
       (1) the housing projects for which project-based assistance 
     is provided under section 8 of the United States Housing Act 
     of 1937, but which are not subject to a mortgage insured or 
     held by the Secretary under the National Housing Act;
       (2) how State and local housing finance agencies have 
     benefited financially from the rental assistance program 
     under section 8 of the United States Housing Act of 1937, 
     including any benefits from fees, bond financings, and 
     mortgage refinancings; and
       (3) the extent and effectiveness of State and local housing 
     finance agencies oversight of the physical and financial 
     management and condition of multifamily housing projects for 
     which project-based assistance is provided under section 8 of 
     the United States Housing Act of 1937.

                   Subtitle C--Enforcement Provisions

     SEC. 541. IMPLEMENTATION.

       (a) Issuance of Necessary Regulations.--Notwithstanding 
     section 7(o) of the Department of Housing and Urban 
     Development Act or part 10 of title 24, Code of Federal 
     Regulations (as in existence on the date of enactment of this 
     Act), the Secretary shall issue such regulations as the 
     Secretary determines to be necessary to implement this 
     subtitle and the amendments made by this subtitle in 
     accordance with section 552 or 553 of title 5, United States 
     Code, as determined by the Secretary.
       (b) Use of Existing Regulations.--In implementing any 
     provision of this subtitle, the Secretary may, in the 
     discretion of the Secretary, provide for the use of existing 
     regulations to the extent appropriate, without rulemaking.

     SEC. 542. INCOME VERIFICATION.

       (a) Reinstitution of Requirements Regarding HUD Access to 
     Certain Information of State Agencies.--
       (1) In general.--Section 303(i) of the Social Security Act 
     is amended by striking paragraph (5).
       (2) Effective date.--The amendment made by this subsection 
     shall apply to any request for information made after the 
     date of the enactment of this Act.
       (b) Repeal of Termination Regarding Housing Assistance 
     Programs.--Section 6103(l)(7)(D) of the Internal Revenue Code 
     of 1986 is amended by striking the last sentence.

           Part 1--FHA Single Family and Multifamily Housing

     SEC. 551. AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES.

       Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 
     1708(c)(3)(C)) is amended by inserting after the first 
     sentence the following: ``Notwithstanding paragraph (4)(A), a 
     suspension shall be effective upon issuance by the Board if 
     the Board determines that there exists adequate evidence that 
     immediate action is required to protect the financial 
     interests of the Department or the public.''.

     SEC. 552. EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY 
                   AND MULTIFAMILY HOUSING PROGRAMS.

       Section 254 of the National Housing Act (12 U.S.C. 1715z-
     19) is amended to read as follows:

     ``SEC. 254. EQUITY SKIMMING PENALTY.

       ``(a) In General.--Whoever, as an owner, agent, or manager, 
     or who is otherwise in custody, control, or possession of a 
     multifamily project or a 1- to 4-family residence that is 
     security for a mortgage note that is described in subsection 
     (b), willfully uses or authorizes the use of any part of the 
     rents, assets, proceeds, income, or other funds derived from 
     property covered by that mortgage note for any purpose other 
     than to meet reasonable and necessary expenses that include 
     expenses approved by the Secretary if such approval is 
     required, in a period during which the mortgage note is in 
     default or the project is in a nonsurplus cash position, as 
     defined by the regulatory agreement covering the property, or 
     the mortgagor has failed to comply with the provisions of 
     such other form of regulatory control imposed by the 
     Secretary, shall be fined not more than $500,000, imprisoned 
     not more than 5 years, or both.
       ``(b) Mortgage Notes Described.--For purposes of subsection 
     (a), a mortgage note is described in this subsection if it--
       ``(1) is insured, acquired, or held by the Secretary 
     pursuant to this Act;
       ``(2) is made pursuant to section 202 of the Housing Act of 
     1959 (including property still subject to section 202 program 
     requirements that existed before the date of enactment of the 
     Cranston-Gonzalez National Affordable Housing Act); or
       ``(3) is insured or held pursuant to section 542 of the 
     Housing and Community Development Act of 1992, but is not 
     reinsured under section 542 of the Housing and Community 
     Development Act of 1992.''.

     SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, 
                   AND OTHER PARTICIPANTS IN FHA PROGRAMS.

       (a) Change to Section Title.--Section 536 of the National 
     Housing Act (12 U.S.C. 1735f-14) is amended by striking the 
     section heading and the section designation and inserting the 
     following:

     ``SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, 
                   LENDERS, AND OTHER PARTICIPANTS IN FHA 
                   PROGRAMS.''.

       (b) Expansion of Persons Eligible for Penalty.--Section 
     536(a) of the National Housing Act (12 U.S.C. 1735f-14(a)) is 
     amended--
       (1) in paragraph (1), by striking the first sentence and 
     inserting the following: ``If a mortgagee approved under the 
     Act, a lender holding a contract of insurance under title I, 
     or a principal, officer, or employee of such mortgagee or 
     lender, or other person or entity participating in either an 
     insured mortgage or title I loan transaction under this Act 
     or providing assistance to the borrower in connection with 
     any such loan, including sellers of the real estate involved, 
     borrowers, closing agents, title companies, real estate 
     agents, mortgage brokers, appraisers, loan correspondents and 
     dealers, knowingly and materially violates any applicable 
     provision of subsection (b), the Secretary may impose a civil 
     money penalty on the mortgagee or lender, or such other 
     person or entity, in accordance with this section. The 
     penalty under this paragraph shall be in addition to any 
     other available civil remedy or any available criminal 
     penalty, and may be imposed whether or not the Secretary 
     imposes other administrative sanctions.''; and
       (2) in paragraph (2)--
       (A) in the first sentence, by inserting ``or such other 
     person or entity'' after ``lender''; and
       (B) in the second sentence, by striking ``provision'' and 
     inserting ``the provisions''.
       (c) Additional Violations for Mortgagees, Lenders, and 
     Other Participants in FHA Programs.--Section 536(b) of the 
     National Housing Act (12 U.S.C. 1735f-14(b)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3);
       (2) by inserting after paragraph (1) the following:
       ``(2) The Secretary may impose a civil money penalty under 
     subsection (a) for any knowing and material violation by a 
     principal, officer, or

[[Page H8342]]

     employee of a mortgagee or lender, or other participants in 
     either an insured mortgage or title I loan transaction under 
     this Act or provision of assistance to the borrower in 
     connection with any such loan, including sellers of the real 
     estate involved, borrowers, closing agents, title companies, 
     real estate agents, mortgage brokers, appraisers, loan 
     correspondents, and dealers for--
       ``(A) submission to the Secretary of information that was 
     false, in connection with any mortgage insured under this 
     Act, or any loan that is covered by a contract of insurance 
     under title I of this Act;
       ``(B) falsely certifying to the Secretary or submitting to 
     the Secretary a false certification by another person or 
     entity; or
       ``(C) failure by a loan correspondent or dealer to submit 
     to the Secretary information which is required by regulations 
     or directives in connection with any loan that is covered by 
     a contract of insurance under title I.''; and
       (3) in paragraph (3), as redesignated, by striking ``or 
     paragraph (1)(F)'' and inserting ``or (F), or paragraph (2) 
     (A), (B), or (C)''.
       (d) Conforming and Technical Amendments.--Section 536 of 
     the National Housing Act (12 U.S.C. 1735f-14) is amended--
       (1) in subsection (c)(1)(B), by inserting after ``lender'' 
     the following: ``or such other person or entity'';
       (2) in subsection (d)(1)--
       (A) by inserting ``or such other person or entity'' after 
     ``lender''; and
       (B) by striking ``part 25'' and inserting ``parts 24 and 
     25''; and
       (3) in subsection (e), by inserting ``or such other person 
     or entity'' after ``lender'' each place that term appears.

                   Part 2--FHA Multifamily Provisions

     SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, 
                   OFFICERS, DIRECTORS, AND CERTAIN MANAGING 
                   AGENTS OF MULTIFAMILY PROJECTS.

       (a) Civil Money Penalties Against Multifamily Mortgagors.--
     Section 537 of the National Housing Act (12 U.S.C. 1735f-15) 
     is amended--
       (1) in subsection (b)(1), by striking ``on that mortgagor'' 
     and inserting the following: ``on that mortgagor, on a 
     general partner of a partnership mortgagor, or on any officer 
     or director of a corporate mortgagor'';
       (2) in subsection (c)--
       (A) by striking the subsection heading and inserting the 
     following:
       ``(c) Other Violations.--''; and
       (B) in paragraph (1)--
       (i) by striking ``Violations.--The Secretary may'' and all 
     that follows through the colon and inserting the following:
       ``(A) Liable parties.--The Secretary may also impose a 
     civil money penalty under this section on--
       ``(i) any mortgagor of a property that includes 5 or more 
     living units and that has a mortgage insured, coinsured, or 
     held pursuant to this Act;
       ``(ii) any general partner of a partnership mortgagor of 
     such property;
       ``(iii) any officer or director of a corporate mortgagor;
       ``(iv) any agent employed to manage the property that has 
     an identity of interest with the mortgagor, with the general 
     partner of a partnership mortgagor, or with any officer or 
     director of a corporate mortgagor of such property; or
       ``(v) any member of a limited liability company that is the 
     mortgagor of such property or is the general partner of a 
     limited partnership mortgagor or is a partner of a general 
     partnership mortgagor.
       ``(B) Violations.--A penalty may be imposed under this 
     section upon any liable party under subparagraph (A) that 
     knowingly and materially takes any of the following 
     actions:'';
       (ii) in subparagraph (B), as designated by clause (i), by 
     redesignating the subparagraph designations (A) through (L) 
     as clauses (i) through (xii), respectively;
       (iii) by adding after clause (xii), as redesignated by 
     clause (ii), the following:
       ``(xiii) Failure to maintain the premises, accommodations, 
     any living unit in the project, and the grounds and equipment 
     appurtenant thereto in good repair and condition in 
     accordance with regulations and requirements of the 
     Secretary, except that nothing in this clause shall have the 
     effect of altering the provisions of an existing regulatory 
     agreement or federally insured mortgage on the property.
       ``(xiv) Failure, by a mortgagor, a general partner of a 
     partnership mortgagor, or an officer or director of a 
     corporate mortgagor, to provide management for the project 
     that is acceptable to the Secretary pursuant to regulations 
     and requirements of the Secretary.
       ``(xv) Failure to provide access to the books, records, and 
     accounts related to the operations of the mortgaged property 
     and of the project.''; and
       (iv) in the last sentence, by deleting ``of such 
     agreement'' and inserting ``of this subsection'';
       (3) in subsection (d)--
       (A) in paragraph (1)(B), by inserting after ``mortgagor'' 
     the following: ``, general partner of a partnership 
     mortgagor, officer or director of a corporate mortgagor, or 
     identity of interest agent employed to manage the 
     property''; and
       (B) by adding at the end the following:
       ``(5) Payment of penalty.--No payment of a civil money 
     penalty levied under this section shall be payable out of 
     project income.'';
       (4) in subsection (e)(1), by deleting ``a mortgagor'' and 
     inserting ``an entity or person'';
       (5) in subsection (f), by inserting after ``mortgagor'' 
     each place such term appears the following: ``, general 
     partner of a partnership mortgagor, officer or director of a 
     corporate mortgagor, or identity of interest agent employed 
     to manage the property'';
       (6) by striking the heading of subsection (f) and inserting 
     the following: ``Civil Money Penalties Against Multifamily 
     Mortgagors, General Partners of Partnership Mortgagors, 
     Officers and Directors of Corporate Mortgagors, and Certain 
     Managing Agents''; and
       (7) by adding at the end the following:
       ``(k) Identity of Interest Managing Agent.--In this 
     section, the terms `agent employed to manage the property 
     that has an identity of interest' and `identity of interest 
     agent' mean an entity--
       ``(1) that has management responsibility for a project;
       ``(2) in which the ownership entity, including its general 
     partner or partners (if applicable) and its officers or 
     directors (if applicable), has an ownership interest; and
       ``(3) over which the ownership entity exerts effective 
     control.''.
       (b) Implementation.--
       (1) Public comment.--The Secretary shall implement the 
     amendments made by this section by regulation issued after 
     notice and opportunity for public comment. The notice shall 
     seek comments primarily as to the definitions of the terms 
     ``ownership interest in'' and ``effective control'', as those 
     terms are used in the definition of the terms ``agent 
     employed to manage the property that has an identity of 
     interest'' and ``identity of interest agent''.
       (2) Timing.--A proposed rule implementing the amendments 
     made by this section shall be published not later than 1 year 
     after the date of enactment of this Act.
       (c) Applicability of Amendments.--The amendments made by 
     subsection (a) shall apply only with respect to--
       (1) violations that occur on or after the effective date of 
     the final regulations implementing the amendments made by 
     this section; and
       (2) in the case of a continuing violation (as determined by 
     the Secretary of Housing and Urban Development), any portion 
     of a violation that occurs on or after that date.

     SEC. 562. CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH 
                   SECTION 8 HAP CONTRACTS.

       (a) Basic Authority.--Title I of the United States Housing 
     Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) by designating the second section designated as section 
     27 (as added by section 903(b) of Public Law 104-193 (110 
     Stat. 2348)) as section 28; and
       (2) by adding at the end the following:

     ``SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.

       ``(a) In General.--
       ``(1) Effect on other remedies.--The penalties set forth in 
     this section shall be in addition to any other available 
     civil remedy or any available criminal penalty, and may be 
     imposed regardless of whether the Secretary imposes other 
     administrative sanctions.
       ``(2) Failure of secretary.--The Secretary may not impose 
     penalties under this section for a violation, if a material 
     cause of the violation is the failure of the Secretary, an 
     agent of the Secretary, or a public housing agency to comply 
     with an existing agreement.
       ``(b) Violations of Housing Assistance Payment Contracts 
     for Which Penalty May Be Imposed.--
       ``(1) Liable parties.--The Secretary may impose a civil 
     money penalty under this section on--
       ``(A) any owner of a property receiving project-based 
     assistance under section 8;
       ``(B) any general partner of a partnership owner of that 
     property; and
       ``(C) any agent employed to manage the property that has an 
     identity of interest with the owner or the general partner of 
     a partnership owner of the property.
       ``(2) Violations.--A penalty may be imposed under this 
     section for a knowing and material breach of a housing 
     assistance payments contract, including the following--
       ``(A) failure to provide decent, safe, and sanitary housing 
     pursuant to section 8; or
       ``(B) knowing or willful submission of false, fictitious, 
     or fraudulent statements or requests for housing assistance 
     payments to the Secretary or to any department or agency of 
     the United States.
       ``(3) Amount of penalty.--The amount of a penalty imposed 
     for a violation under this subsection, as determined by the 
     Secretary, may not exceed $25,000 per violation.
       ``(c) Agency Procedures.--
       ``(1) Establishment.--The Secretary shall issue regulations 
     establishing standards and procedures governing the 
     imposition of civil money penalties under subsection (b). 
     These standards and procedures--
       ``(A) shall provide for the Secretary or other department 
     official to make the determination to impose the penalty;
       ``(B) shall provide for the imposition of a penalty only 
     after the liable party has received notice and the 
     opportunity for a hearing on the record; and
       ``(C) may provide for review by the Secretary of any 
     determination or order, or interlocutory ruling, arising from 
     a hearing and judicial review, as provided under subsection 
     (d).
       ``(2) Final orders.--
       ``(A) In general.--If a hearing is not requested before the 
     expiration of the 15-day period beginning on the date on 
     which the notice of opportunity for hearing is received, the 
     imposition of a penalty under subsection (b) shall constitute 
     a final and unappealable determination.
       ``(B) Effect of review.--If the Secretary reviews the 
     determination or order, the Secretary may affirm, modify, or 
     reverse that determination or order.
       ``(C) Failure to review.--If the Secretary does not review 
     that determination or order before the expiration of the 90-
     day period beginning on the date on which the determination 
     or

[[Page H8343]]

     order is issued, the determination or order shall be final.
       ``(3) Factors in determining amount of penalty.--In 
     determining the amount of a penalty under subsection (b), the 
     Secretary shall take into consideration--
       ``(A) the gravity of the offense;
       ``(B) any history of prior offenses by the violator 
     (including offenses occurring before the enactment of this 
     section);
       ``(C) the ability of the violator to pay the penalty;
       ``(D) any injury to tenants;
       ``(E) any injury to the public;
       ``(F) any benefits received by the violator as a result of 
     the violation;
       ``(G) deterrence of future violations; and
       ``(H) such other factors as the Secretary may establish by 
     regulation.
       ``(4) Payment of penalty.--No payment of a civil money 
     penalty levied under this section shall be payable out of 
     project income.
       ``(d) Judicial Review of Agency Determination.--Judicial 
     review of determinations made under this section shall be 
     carried out in accordance with section 537(e) of the National 
     Housing Act.
       ``(e) Remedies for Noncompliance.--
       ``(1) Judicial intervention.--
       ``(A) In general.--If a person or entity fails to comply 
     with the determination or order of the Secretary imposing a 
     civil money penalty under subsection (b), after the 
     determination or order is no longer subject to review as 
     provided by subsections (c) and (d), the Secretary may 
     request the Attorney General of the United States to bring an 
     action in an appropriate United States district court to 
     obtain a monetary judgment against that person or entity and 
     such other relief as may be available.
       ``(B) Fees and expenses.--Any monetary judgment awarded in 
     an action brought under this paragraph may, in the discretion 
     of the court, include the attorney's fees and other expenses 
     incurred by the United States in connection with the action.
       ``(2) Nonreviewability of determination or order.--In an 
     action under this subsection, the validity and 
     appropriateness of the determination or order of the 
     Secretary imposing the penalty shall not be subject to 
     review.
       ``(f) Settlement by Secretary.--The Secretary may 
     compromise, modify, or remit any civil money penalty which 
     may be, or has been, imposed under this section.
       ``(g) Deposit of Penalties.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, if the mortgage covering the property receiving 
     assistance under section 8 is insured or formerly insured by 
     the Secretary, the Secretary shall apply all civil money 
     penalties collected under this section to the appropriate 
     insurance fund or funds established under this Act, as 
     determined by the Secretary.
       ``(2) Exception.--Notwithstanding any other provision of 
     law, if the mortgage covering the property receiving 
     assistance under section 8 is neither insured nor formerly 
     insured by the Secretary, the Secretary shall make all civil 
     money penalties collected under this section available for 
     use by the appropriate office within the Department for 
     administrative costs related to enforcement of the 
     requirements of the various programs administered by the 
     Secretary.
       ``(h) Definitions.--In this section--
       ``(1) the term `agent employed to manage the property that 
     has an identity of interest' means an entity--
       ``(A) that has management responsibility for a project;
       ``(B) in which the ownership entity, including its general 
     partner or partners (if applicable), has an ownership 
     interest; and
       ``(C) over which such ownership entity exerts effective 
     control; and
       ``(2) the term `knowing' means having actual knowledge of 
     or acting with deliberate ignorance of or reckless disregard 
     for the prohibitions under this section.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall apply only with respect to--
       (1) violations that occur on or after the effective date of 
     final regulations implementing the amendments made by this 
     section; and
       (2) in the case of a continuing violation (as determined by 
     the Secretary of Housing and Urban Development), any portion 
     of a violation that occurs on or after such date.
       (c) Implementation.--
       (1) Regulations.--
       (A) In general.--The Secretary shall implement the 
     amendments made by this section by regulation issued after 
     notice and opportunity for public comment.
       (B) Comments sought.--The notice under subparagraph (A) 
     shall seek comments as to the definitions of the terms 
     ``ownership interest in'' and ``effective control'', as such 
     terms are used in the definition of the term ``agent employed 
     to manage such property that has an identity of interest''.
       (2) Timing.--A proposed rule implementing the amendments 
     made by this section shall be published not later than 1 year 
     after the date of enactment of this Act.

     SEC. 563. EXTENSION OF DOUBLE DAMAGES REMEDY.

       Section 421 of the Housing and Community Development Act of 
     1987 (12 U.S.C. 1715z-4a) is amended--
       (1) in subsection (a)(1)--
       (A) in the first sentence, by striking ``Act; or (B)'' and 
     inserting the following: ``Act; (B) a regulatory agreement 
     that applies to a multifamily project whose mortgage is 
     insured or held by the Secretary under section 202 of the 
     Housing Act of 1959 (including property subject to section 
     202 of such Act as it existed before enactment of the 
     Cranston-Gonzalez National Affordable Housing Act of 1990); 
     (C) a regulatory agreement or such other form of regulatory 
     control as may be imposed by the Secretary that applies to 
     mortgages insured or held by the Secretary under section 542 
     of the Housing and Community Development Act of 1992, but not 
     reinsured under section 542 of the Housing and Community 
     Development Act of 1992; or (D)''; and
       (B) in the second sentence, by inserting after 
     ``agreement'' the following: ``, or such other form of 
     regulatory control as may be imposed by the Secretary,'';
       (2) in subsection (a)(2), by inserting after ``Act,'' the 
     following: ``under section 202 of the Housing Act of 1959 
     (including section 202 of such Act as it existed before 
     enactment of the Cranston-Gonzalez National Affordable 
     Housing Act of 1990) and under section 542 of the Housing and 
     Community Development Act of 1992,'';
       (3) in subsection (b), by inserting after ``agreement'' the 
     following: ``, or such other form of regulatory control as 
     may be imposed by the Secretary,'';
       (4) in subsection (c)--
       (A) in the first sentence, by inserting after ``agreement'' 
     the following: ``, or such other form of regulatory control 
     as may be imposed by the Secretary,''; and
       (B) in the second sentence, by inserting before the period 
     the following: ``or, in the case of any project for which the 
     mortgage is held by the Secretary under section 202 of the 
     Housing Act of 1959 (including property subject to section 
     202 of such Act as it existed before enactment of the 
     Cranston-Gonzalez National Affordable Housing Act of 1990), 
     to the project or to the Department for use by the 
     appropriate office within the Department for administrative 
     costs related to enforcement of the requirements of the 
     various programs administered by the Secretary, as 
     appropriate''; and
       (5) in subsection (d), by inserting after ``agreement'' the 
     following: ``, or such other form of regulatory control as 
     may be imposed by the Secretary,''.

     SEC. 564. OBSTRUCTION OF FEDERAL AUDITS.

       Section 1516(a) of title 18, United States Code, is amended 
     by inserting after ``under a contract or subcontract,'' the 
     following: ``or relating to any property that is security for 
     a mortgage note that is insured, guaranteed, acquired, or 
     held by the Secretary of Housing and Urban Development 
     pursuant to any Act administered by the Secretary,''.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

     SEC. 571. ESTABLISHMENT OF OFFICE OF MULTIFAMILY HOUSING 
                   ASSISTANCE RESTRUCTURING.

       There is hereby established an office within the Department 
     of Housing and Urban Development, which shall be known as the 
     Office of Multifamily Housing Assistance Restructuring.

     SEC. 572. DIRECTOR.

       (a) Appointment.--The Office shall be under the management 
     of a Director, who shall be appointed by the President by and 
     with the advice and consent of the Senate, from among 
     individuals who are citizens of the United States and have a 
     demonstrated understanding of financing and mortgage 
     restructuring for affordable multifamily housing. Not later 
     than 60 days after the date of the enactment of this Act, the 
     President shall submit to the Senate a nomination for initial 
     appointment to the position of Director.
       (b) Vacancy.--A vacancy in the position of Director shall 
     be filled in the manner in which the original appointment was 
     made under subsection (a).
       (c) Deputy Director.--
       (1) In general.--The Office shall have a Deputy Director 
     who shall be appointed by the Director from among individuals 
     who are citizens of the United States and have a demonstrated 
     understanding of financing and mortgage restructuring for 
     affordable multifamily housing.
       (2) Functions.--The Deputy Director shall have such 
     functions, powers, and duties as the Director shall 
     prescribe. In the event of the death, resignation, sickness, 
     or absence of the Director, the Deputy Director shall serve 
     as acting Director until the return of the Director or the 
     appointment of a successor pursuant to subsection (b).

     SEC. 573. DUTY AND AUTHORITY OF DIRECTOR.

       (a) Duty.--The Secretary shall, acting through the 
     Director, administer the program of mortgage and rental 
     assistance restructuring for eligible multifamily housing 
     projects under subtitle A. During the period before the 
     Director is appointed, the Secretary may carry out such 
     program.
       (b) Authority.--The Director is authorized to make such 
     determinations, take such actions, issue such regulations, 
     and perform such functions assigned to the Director under law 
     as the Director determines necessary to carry out such 
     functions, subject to the review and approval of the 
     Secretary. The Director shall semiannually submit a report to 
     the Secretary regarding the activities, determinations, and 
     actions of the Director.
       (c) Delegation of Authority.--The Director may delegate to 
     officers and employees of the Office (but not to contractors, 
     subcontractors, or consultants) any of the functions, powers, 
     and duties of the Director, as the Director considers 
     appropriate.
       (d) Independence in Providing Information to Congress.--
       (1) In general.--Notwithstanding subsection (a) or (b), the 
     Director shall not be required to obtain the prior approval, 
     comment, or review of any officer or agency of the United 
     States before submitting to the Congress, or any committee or 
     subcommittee thereof, any reports, recommendations, 
     testimony, or comments if such submissions include a 
     statement indicating that the views expressed therein are 
     those of the Director and do not necessarily represent the 
     views of the Secretary or the President.
       (2) Requirement.--If the Director determines at any time 
     that the Secretary is taking or has taken any action that 
     interferes with the ability

[[Page H8344]]

     of the Director to carry out the duties of the Director under 
     this Act or that affects the administration of the program 
     under subtitle A of this Act in manner that is inconsistent 
     with the purposes of this Act, including any proposed action 
     by the Director, in the discretion of the Director, that is 
     overruled by the Secretary, the Director shall immediately 
     report directly to the Committee on Banking and Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate regarding 
     such action. Notwithstanding subsection (a) or (b), any 
     determination or report under this paragraph by the Director 
     shall not be subject to prior review or approval of the 
     Secretary.

     SEC. 574. PERSONNEL.

       (a) Office Personnel.--The Director may appoint and fix the 
     compensation of such officers and employees of the Office as 
     the Director considers necessary to carry out the functions 
     of the Director and the Office. Officers and employees may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification and General Schedule pay rates.
       (b) Comparability of Compensation With Federal Banking 
     Agencies.--In fixing and directing compensation under 
     subsection (a), the Director shall consult with, and maintain 
     comparability with compensation of officers and employees of 
     the Federal Deposit Insurance Corporation.
       (c) Personnel of Other Federal Agencies.--In carrying out 
     the duties of the Office, the Director may use information, 
     services, staff, and facilities of any executive agency, 
     independent agency, or department on a reimbursable basis, 
     with the consent of such agency or department.
       (d) Outside Experts and Consultants.--The Director may 
     procure temporary and intermittent services under section 
     3109(b) of title 5, United States Code.

     SEC. 575. BUDGET AND FINANCIAL REPORTS.

       (a) Financial Operating Plans and Forecasts.--Before the 
     beginning of each fiscal year, the Secretary shall submit a 
     copy of the financial operating plans and forecasts for the 
     Office to the Director of the Office of Management and 
     Budget.
       (b) Reports of Operations.--As soon as practicable after 
     the end of each fiscal year and each quarter thereof, the 
     Secretary shall submit a copy of the report of the results of 
     the operations of the Office during such period to the 
     Director of the Office of Management and Budget.
       (c) Inclusion in President's Budget.--The annual plans, 
     forecasts, and reports required under this section shall be 
     included (1) in the Budget of the United States in the 
     appropriate form, and (2) in the congressional justifications 
     of the Department of Housing and Urban Development for each 
     fiscal year in a form determined by the Secretary.

     SEC. 576. LIMITATION ON SUBSEQUENT EMPLOYMENT.

       Neither the Director nor any former officer or employee of 
     the Office who, while employed by the Office, was compensated 
     at a rate in excess of the lowest rate for a position 
     classified higher than GS-15 of the General Schedule under 
     section 5107 of title 5, United States Code, may, during the 
     2-year period beginning on the date of separation from 
     employment by the Office, accept compensation from any party 
     (other than a Federal agency) having any financial interest 
     in any mortgage restructuring and rental assistance 
     sufficiency plan under subtitle A or comparable matter in 
     which the Director or such officer or employee had direct 
     participation or supervision.

     SEC. 577. AUDITS BY GAO.

       The Comptroller General shall audit the operations of the 
     Office in accordance with generally accepted Government 
     auditing standards. All books, records, accounts, reports, 
     files, and property belonging to, or used by, the Office 
     shall be made available to the Comptroller General. Audits 
     under this section shall be conducted annually for the first 
     2 fiscal years following the date of the enactment of this 
     Act and as appropriate thereafter.

     SEC. 578. SUSPENSION OF PROGRAM BECAUSE OF FAILURE TO APPOINT 
                   DIRECTOR.

       (a) In General.--If, upon the expiration of the 12-month 
     period beginning on the date of the enactment of this Act, 
     the initial appointment to the office of Director has not 
     been made, the operation of the program under subtitle A 
     shall immediately be suspended and such provisions shall not 
     have any force or effect during the period that ends upon the 
     making of such appointment.
       (b) Interim applicability of demonstration program.--
     Notwithstanding any other provision of law, during the period 
     referred to in subsection (a), the Secretary shall carry out 
     sections 211 and 212 of the Departments of Veterans Affairs 
     and Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997. For purposes of applying such 
     sections pursuant to the authority under this section, the 
     term ``expiring contract'' shall have the meaning given in 
     such sections, except that such term shall also include any 
     contract for project-based assistance under section 8 of the 
     United States Housing Act of 1937 that expires during the 
     period that the program is suspended under subsection (a).

     SEC. 579. TERMINATION.

       (a) Repeal.--Subtitle A (except for section 524) and 
     subtitle D (except for this section) are repealed effective 
     October 1, 2001.
       (b) Exception.--Notwithstanding the repeal under subsection 
     (a), the provisions of subtitle A (as in effect immediately 
     before such repeal) shall apply with respect to projects and 
     programs for which binding commitments have been entered into 
     under this Act before October 1, 2001.
       (c) Termination of Director and Office.--The Office of 
     Multifamily Housing Assistance Restructuring and the position 
     of Director of such Office shall terminate upon September 30, 
     2001.
       (d) Transfer of Authority.--Effective upon the termination 
     under subsection (c), any authority and responsibilities 
     assigned to the Director that remain applicable after such 
     date pursuant to subsection (b) are transferred to the 
     Secretary.
       This Act may be cited as the ``Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1998''.
       And the Senate agree to the same.
     Jerry Lewis,
     Tom DeLay,
     James T. Walsh,
     Dave Hobson,
     Joe Knollenberg,
     R.P. Frelinghuysen,
     Roger F. Wicker,
     Bob Livingston,
     Louis Stokes,
     Alan B. Mollohan,
     Marcy Kaptur,
     Carrie P. Meek,
     David E. Price,
     Dave Obey,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard Shelby,
     Ben Nighthorse Campbell,
     Larry E. Craig,
     Thad Cochran,
     Barbara A. Mikulski,
     Patrick J. Leahy,
     Frank R. Lautenberg,
     Tom Harkin,
     Barbara Boxer,
     Robert C. Byrd,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2158) making 
     appropriations for the Departments of Veterans Affairs and 
     Housing and Urban Development, and for sundry independent 
     agencies, commissions, corporations, and offices for the 
     fiscal year ending September 30, 1998, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying report.
       The language and allocations set forth in House Report 105-
     175 and Senate Report 105-53 should be complied with unless 
     specifically addressed to the contrary in the conference 
     report and statement of the managers. Report language 
     included by the House which is not changed by the report of 
     the Senate or the conference, and Senate report language 
     which is not changed by the conference is approved by the 
     committee of conference. The statement of the managers, while 
     repeating some report language for emphasis, does not intend 
     to negate the language referred to above unless expressly 
     provided herein. In cases in which the House or Senate have 
     directed the submission of a report, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration


                              medical care

       Appropriates $17,057,396,000 for medical care, instead of 
     $17,006,846,000 as proposed by the House and $17,026,846,000 
     as proposed by the Senate.
       The increase of $98,550,000 consists of the following 
     additions to the budget request:
       +$68,000,000 to continue the funding of compensation and 
     pension examinations from the medical care account.
       +$30,550,000 as a general increase, subject to approval in 
     the operating plan.
       The conferees agree that within the total amount provided, 
     $6,000,000 is to establish the Musculoskeletal Disease 
     Prevention and Treatment Research Center at the Jerry L. 
     Pettis Memorial VA Medical Center in Loma Linda, California. 
     This amount is in addition to the amount that would otherwise 
     be made available to VISN 22.
       The conferees wish to emphasize language in the House and 
     Senate reports regarding expanding an outpatient clinic in 
     Williamsport, Pennsylvania; activation costs for construction 
     projects at the medical centers in Wilkes-Barre, Pennsylvania 
     and Phoenix, Arizona; and the demonstration project involving 
     the Clarksburg VA Medical Center and Ruby Memorial Hospital. 
     The VA is urged to establish a community based outpatient 
     clinic in Brookhaven, New York.
       Deletes language proposed by the House and stricken by the 
     Senate enabling compensation and pension exams to be directly 
     funded from Veterans Benefits Administration resources. The 
     Administration proposed that the cost of conducting medical 
     examinations with respect to veterans' claims for 
     compensation or pension be reimbursed from the general 
     operating expenses appropriation. The conferees expect the 
     results of a soon to begin pilot program to contract for 
     compensation and pension exams will determine the 
     advisability of this concept.

[[Page H8345]]

       Delays the availability of $570,000,000 of the medical care 
     appropriation in the equipment and land and structures object 
     classifications until August 1, 1998, instead of delaying the 
     availability of $565,000,000 as proposed by the House and 
     $550,000,000 as proposed by the Senate.
       Inserts language as proposed by the House earmarking not to 
     exceed $5,000,000 for a pilot program on the cost-
     effectiveness of contracting with local hospitals in East 
     Central Florida for the provision of non-emergent inpatient 
     health care needs of veterans. The VA is to submit a report 
     to the Committees on Appropriations on how it plans to 
     conduct the demonstration program prior to implementation.
       Inserts modifications to identical language proposed by the 
     House and the Senate making amounts recovered or collected 
     and deposited in the Department of Veterans Affairs Medical 
     Care Collections Fund available for general purposes of the 
     medical care appropriation, including administrative costs 
     associated with collecting such funds. The modifications 
     reflect the authorizing legislation which was enacted 
     subsequent to House and Senate consideration of the 
     appropriations bill. The conference agreement also provides 
     for the availability of any moneys deposited in the Fund due 
     to a shortfall that is in excess of $25,000,000 below the 
     $604,000,000 estimated to be recovered, as authorized in 
     Public Law 105-33, the Balanced Budget Act of 1997. Including 
     this language on shortfalls is scored as costing $15,000,000 
     in budget authority and $14,000,000 in outlays. The conferees 
     wish to make clear that the $15,000,000 is not the amount 
     that would be made available in the event of a shortfall, 
     rather it is the cost scored for permitting funds 
     deposited by the Secretary of the Treasury to be made 
     available from the Fund to the VA for health care. The 
     actual amount of the funds made available would depend 
     upon the amount of the shortfall. The language proposed by 
     the House in section 108 of the VA administrative 
     provisions dealing with a potential shortfall is deleted 
     due to the enactment of authorizing legislation and 
     language carried under this heading.
       The House report contained a request that the General 
     Accounting Office study and report on the effects of Veterans 
     Integrated Service Networks (VISN) and Veterans Equitable 
     Resource Allocation (VERA) processes and their 
     implementation. The report was to be completed in four 
     months. The Secretary was directed, pending receipt of the 
     GAO report, to fund all VISNs at least at the fiscal year 
     1996 level. The Senate report indicated support for the 
     implementation of VISN and VERA. It also expressed opposition 
     to efforts to thwart VERA. The conference agreement retains 
     the GAO report requirements, modified to direct that the 
     report be completed in nine months. The conference agreement 
     does not direct the VA to fund all VISNs at least at the 
     fiscal year 1996 level.
       The conferees support the pilot diabetes project in New 
     England and Hawaii funded through the Department of Defense. 
     The two-year pilot demonstration program shows promise for 
     improved and innovative methods of diabetes detection, 
     prevention, and care.
       The conferees encourage VA to examine carefully the work in 
     Detroit associated with the PARMIN, population and resource 
     management information network. The conferees further 
     encourage VA to consider setting aside an appropriate amount 
     for the development and analytical work associated with the 
     PARMIN system, and have the VA report back to the Committees 
     on Appropriations as to the viability of this project within 
     120 days of enactment of this Act.


                    MEDICAL AND PROSTHETIC RESEARCH

       Appropriates $272,000,000 for medical and prosthetic 
     research, instead of $292,000,000 as proposed by the House 
     and $267,000,000 as proposed by the Senate. The conference 
     agreement includes $10,000,000 for research into Parkinson's 
     disease. The VA is to report to the Committees on 
     Appropriations with detailed plans on how it plans to spend 
     these research funds.
       Deletes language proposed by the House and stricken by the 
     Senate earmarking $25,000,000 of the appropriation for 
     medical research relating to Gulf War illnesses afflicting 
     Persian Gulf veterans. The committee of conference is 
     concerned with illnesses reported by some Gulf War veterans. 
     However, the VA indicates that it is not possible to utilize 
     effectively $25,000,000 for such research. The conferees 
     agree that the VA is to utilize $12,500,000 of the 
     appropriation for such purposes, and to submit information 
     with the operating plan on how the funds will be spent. The 
     conferees note that the Federal Government is also spending 
     money on this effort in the Department of Defense, the 
     National Institute of Environmental Health Sciences, and the 
     Centers for Disease Control.


      MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES

       Appropriates $59,860,000 for medical administration and 
     miscellaneous operating expenses, instead of $60,160,000 as 
     proposed by the House and the Senate. The decrease of 
     $300,000 is a general reduction from the budget request, 
     subject to approval in the operating plan. Additional 
     information on the reduction can be found in this report 
     under the general operating expenses account.

                      Departmental Administration


                       GENERAL OPERATING EXPENSES

       Appropriates $786,135,000 for general operating expenses, 
     instead of $853,385,000 as proposed by the House and 
     $786,385,000 as proposed by the Senate. This amount includes 
     the following changes to the budget request:
       -$68,000,000 requested to fund compensation and pension 
     examinations from the general operating expenses 
     appropriation. Funds for these purposes continue to be 
     included in the medical care account.
       +$8,000,000, subject to approval in the operating plan, for 
     activities such as higher than anticipated contracting costs 
     to ensure compliance with Year 2000 computer problems, 
     retaining Veterans Benefits Administration staff to improve 
     the timeliness of processing veterans claims, development and 
     implementation of capacities that will enable effective 
     Department-wide strategic planning and management, 
     information technology priorities delineated in the recent 
     National Academy of Public Administration report, and other 
     priorities recommended by NAPA. Consideration should be given 
     to reprogramming funds from activities identified by NAPA as 
     lower priority, such as VETSNET. The VA should consider this 
     a one-time adjustment to address on-going concerns. Future 
     budget requests are to include adequate funds for 
     administrative costs.
       -$150,000 from the $3,630,000 requested for the Office of 
     the Secretary.
       -$100,000 from the $2,373,000 requested for the Office of 
     the Assistant Secretary for Congressional Affairs.
       The conferees are concerned about the responsiveness of the 
     Department of Veterans Affairs to Congressional inquiries 
     regarding the implementation of the VERA system. The 
     committee of conference directs the Department to communicate 
     with Congress on the development of this new allocation 
     system, as well as all other matters of interest, in a timely 
     and informative manner. The conferees are particularly 
     disturbed by the implementation of the VERA system within 
     VISN 4. It is the understanding of the conferees that the VA 
     failed to provide any information regarding the 40 different 
     funding scenarios that were run in VISN 4 before deciding on 
     a final allocation. Further, some hospitals within VISN 4 
     received allocations above their budget request, while some 
     hospitals were targeted for cuts. The conferees are concerned 
     that no satisfactory justification for this discrepancy has 
     been provided. Additionally, the committee of conference 
     understands that harsh and unfair personnel policies have 
     been implemented in at least one hospital within VISN 4. The 
     conferees emphasize that such activity will not be tolerated.
       In an effort to address these issues, the conferees expect 
     the Department to provide a full and detailed report, not 
     later than December 15, 1997, to the Committees on 
     Appropriations. This report should include but not be limited 
     to: a complete explanation of the funding allocation within 
     VISN 4, including all 40 funding scenarios in the Stars and 
     Stripes Health Care Network, the specific methodology used to 
     reach the final allocation within the VISN 4 network, a 
     detailed justification for any funding increases or decreases 
     provided to any hospital within VISN 4 throughout fiscal year 
     1997, and a detailed evaluation of the formulas and funding 
     methodology used for the allocation of resources during 
     fiscal year 1997.
       Finally, the Secretary, the Assistant Secretary for 
     Congressional Affairs, and the Under Secretary for Health are 
     immediately to take appropriate action to ensure that the 
     agency is more responsive to Congressional inquiries, and 
     that responses to requests for information are timely and 
     provide clear, specific, and forthcoming explanations. The 
     committee of conference directs that $3,480,000 will be 
     available for the Office of the Secretary, a reduction of 
     $150,000 below the budget request. An amount of $2,273,000 
     will be available for the Office of the Assistant Secretary 
     for Congressional Affairs, a $100,000 reduction below the 
     budget request. The conferees direct that none of the 
     reduction is to be applied to the Congressional liaison 
     offices. An amount of $59,860,000 will be made available for 
     the medical and miscellaneous operating expenses account, a 
     decrease of $300,000 below the budget request. The total 
     amount of these savings, $550,000, will be provided as an 
     increase to the medical care account for providing health 
     care to veterans.
       Deletes language proposed by the House and stricken by the 
     Senate enabling compensation and pension medical examinations 
     to be directly funded from Veterans Benefits Administration 
     resources. Such exams will continue to be funded from the 
     medical care appropriation.
       Inserts language proposed by the House and stricken by the 
     Senate prohibiting the VA from proceeding with the relocation 
     of loan guaranty divisions of the Regional Office in St. 
     Petersburg, Florida to Atlanta, Georgia. The conferees do not 
     believe the VA has adequately justified the proposed 
     relocation. Any future relocation proposal should include a 
     detailed cost-benefit analysis including comparison of 
     savings for the cost of space and personnel.


         Veterans Housing Benefit Program Fund Program Account

       Adds technical change to the bill language for the Veterans 
     Housing Benefit Program Fund Program Account facilitating the 
     transition during fiscal year 1998 from the previous direct 
     and guaranteed housing loan program accounts to the new 
     appropriation. These provisions have recently been requested 
     by the VA, but were not included in either the House or 
     Senate bills.

[[Page H8346]]

                      Construction, Major Projects

       Appropriates $177,900,000 for construction, major projects, 
     instead of $159,600,000 as proposed by the House and 
     $92,800,000 as proposed by the Senate. The conference 
     agreement includes the following changes from the budget 
     estimate:
       +$26,300,000 for construction of an ambulatory care 
     addition at the Asheville, North Carolina VA Medical Center.
       +$21,100,000 for construction of an ambulatory care 
     addition at the Lyons, New Jersey VA Medical Center.
       +$7,700,000 for the ward renovations for patient privacy 
     project at the Omaha, Nebraska VA Medical Center.
       +$26,000,000 for the environmental improvements project at 
     the Waco, Texas VA Medical Center.
       +$4,000,000 for the columbarium component of the 
     development and improvement project at the National Memorial 
     Cemetery of Arizona. This amount is in addition to the 
     $9,100,000 requested and included in the total for major 
     construction for the development and improvement of this 
     cemetery project.
       +$12,400,000 for the patient privacy/environmental 
     improvements project at the Pittsburgh, Pennsylvania VA 
     Medical Center.
       +$900,000 for planning of a new national cemetery in 
     Oklahoma City, Oklahoma.
       Inserts language proposed by the Senate making $32,100,000 
     earmarked in the 1997 Appropriations act for a replacement 
     hospital at Travis Air Force Base available to implement the 
     recommendations contained in the final report entitled 
     ``Assessment of Veterans' Health Care Needs in Northern 
     California,'' modified to make such funds generally available 
     for major construction projects approved in the budgetary 
     process. This $32,100,000 together with $38,700,000 provided 
     in previous Appropriations Acts for the replacement for the 
     hospital at Martinez, makes a total of $70,800,000 available 
     for capital funding for construction projects in northern 
     California. Instead of a replacement hospital to be built at 
     David Grant Medical Center at Travis Air Force Base, the VA 
     recommends capital funding for a project in northern 
     California which consists of the following elements:
       $48,000,000 to renovate and add to the existing McClellan 
     Hospital at Mather Field, Sacramento, California, for VA 
     inpatient and outpatient services.
       $13,500,000 to construct a new VA outpatient clinic at 
     Travis Air Force Base, Fairfield, California.
       $3,100,000 to upgrade the existing outpatient clinic at the 
     former Mare Island Naval Shipyard, Vallejo, California, for a 
     VA outpatient clinic.
       $3,200,000 to upgrade the existing VA outpatient clinic at 
     Martinez, California, and
       $3,000,000 to develop new VA outpatient clinics at Auburn, 
     Chico, Eureka, and Merced, California.
       In addition to these capital plans, the VA has reached 
     agreement with the Department of Defense about the Air Force 
     making available up to 100 beds at David Grant Medical Center 
     to provide inpatient care associated with the VA outpatient 
     clinic to be built there. The conferees understand that the 
     VA will pursue contracting arrangements with community health 
     care facilities in Martinez and Redding, California, to 
     improve access to inpatient services for veterans in those 
     areas.
       The conferees agree with the utilization of the $70,800,000 
     in previously appropriated funds for the construction of 
     facilities in northern California as proposed by the VA and 
     outlined in this statement. The conferees agree with 
     increasing to 100 the number of inpatient beds at Travis, and 
     contracting the community health care facilities in Martinez 
     and Redding for inpatient services. This plan will provide 
     better access to health care services for the veterans in 
     northern California and save funds.
       The conferees recognize that the cost estimates are 
     tentative and expect the VA to notify the Committees on 
     Appropriations of any changes in the cost estimates for the 
     individual components of this single project prior to 
     proceeding to construction bid. The conferees also recognize 
     that the majority of the plan requires authorization by the 
     legislative committees, and anticipate that the construction 
     authorization process will proceed in a timely manner so as 
     to benefit veterans in northern California.
       Deletes language proposed by the House and the Senate 
     requiring the General Accounting Office to review and report 
     on construction projects where obligations are not incurred 
     within prescribed time limitations. The VA is still required 
     to report all such delays in obligating major construction 
     funds to the Committees on Appropriations.


                      construction, minor projects

       Appropriates $175,000,000 for construction, minor projects, 
     instead of $176,500,000 as proposed by the House and 
     $166,300,000 as proposed by the Senate. The amount provided 
     includes funds for the following activities:
       +$1,500,000 for the expansion of the existing National 
     Cemetery in Mobile, Alabama.
       +$1,500,000 to increase the number of niches at the 
     columbarium at the National Memorial Cemetery of the Pacific 
     by 5,000.
       The conferees urge the VA to utilize the balance of the 
     addition to increase funding for converting inpatient space 
     to outpatient activities use.
       The conferees note the recent request for approval of a 
     reprogramming request of construction, major projects funds 
     to complete the third floor of the Regional Office in 
     Jackson, Mississippi. The proposed reprogramming request of 
     $1,000,000 for the project in Jackson is approved.


       grants for construction of state extended care facilities

       Appropriates $80,000,000 for grants for construction of 
     State extended care facilities as proposed by the Senate, 
     instead of $54,500,000 as proposed by the House.


                       administrative provisions

       Deletes language proposed by the House and stricken by the 
     Senate in section 108 assuring that, upon enactment of 
     legislation establishing the Medical Collection Fund, 
     $579,000,000 shall be available for veterans medical care if 
     a shortfall in recoveries in excess of $25,000,000 occurs. 
     The enactment of authorizing legislation and language carried 
     under the medical care appropriation provide such assurance. 
     The committee of conference wishes to make clear that the VA 
     is expected to take all actions necessary to meet or exceed 
     the amount of funds projected to be collected.
       Inserts language proposed by the Senate in section 108 
     restoring the authority of the VA to request waivers of the 
     home residency requirement for doctors employed at VA medical 
     facilities on J-1 visas.
       Deletes language proposed by the Senate in section 109 
     limiting the use of the locality pay differential to provide 
     a pay increase to an employee transferred as a result of 
     charges of sexual harassment. The conferees wish to make 
     clear that the VA Secretary is to take all appropriate steps 
     to ensure that a ``zero tolerance'' policy toward sexual 
     harassment is implemented in all VA facilities and offices, 
     including the strongest possible sanctions against employees 
     engaging in such practices.
       Inserts language, section 109, extending the availability 
     of previously appropriated funds for a capital lease. This 
     administrative provision was not included in either the House 
     or Senate bills. Without this language, certain funds for a 
     multi-year capital lease would lapse and the VA would be 
     required to, in effect, pay twice for the lease.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                        housing certificate fund

       Appropriates $9,373,000,000 for the housing certificate 
     fund instead of $10,393,000,000 as proposed by the House and 
     $10,119,000,000 as proposed by the Senate. Of this amount, 
     $8,180,000,000 is provided for expiring or terminated section 
     8 project-based and tenant-based subsidy contracts instead of 
     $9,200,000,000 as proposed by the House and $8,666,000,000 as 
     proposed by the Senate. Additionally, $850,000,000 is 
     provided for section 8 amendments as proposed by the House 
     instead of $1,110,000,000 as proposed by the Senate. Finally, 
     $40,000,000 is earmarked for section 8 certificates and 
     vouchers necessary to relocate any nonelderly, disabled 
     persons and their families who choose to move from a project 
     designated for elderly persons only, as proposed by the 
     Senate, rather than $50,000,000 as proposed by the House. 
     Language is included to make the requirements for using these 
     funds more flexible. Additional language is included to 
     clarify that eligible residents may receive section 8 
     enhanced vouchers, also known as ``sticky'' vouchers, if an 
     owner of the property chooses to prepay the outstanding 
     indebtedness as authorized under the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990 
     (Preservation Program or LIHPRHA).


                 section 8 reserve preservation account

       The conferees agree to provide HUD with authority to 
     maintain a section 8 Reserve Preservation Account for the 
     purpose of collecting recaptured excess section 8 reserve 
     funds.


               annual contributions for assisted housing

       The conferees agree to rescind $550,000,000 of recaptured 
     section 8 reserve funds.


                      public housing capital fund

       The Senate proposed language setting aside funds for the 
     Economic Development and Supportive Services (EDSS) program 
     within the Public Housing Capital Fund. The conferees have 
     instead included this language within the Community 
     Development Block Grants (CDBG) account as proposed by the 
     House. Language is added to the Public Housing Capital Fund 
     account to clarify that HUD may spend up to $5,000,000 for 
     the Tenant Opportunity Program as proposed by the Senate.


             drug elimination grants for low-income housing

       Appropriates $310,000,000 for the Drug Elimination Grants 
     program, including $20,000,000 for the ``New Approach Anti-
     Drug Program,'' instead of funding this new program with a 
     $30,000,000 set-aside within the CDBG account, as proposed by 
     the Senate. The House did not appropriate funds for this 
     purpose.
       The ``New Approach Anti-Drug Program'' authorizes HUD to 
     make competitive grants to entities managing or operating 
     public housing developments, federally assisted multifamily 
     housing developments or other multifamily housing 
     developments for low-income families supported by non-Federal 
     governmental entities or nonprofits. The funds may be used to 
     provide, augment, or assist in the investigation and/or 
     prosecution of drug-related criminal activity in and around 
     low-income housing, and to provide assistance for capital 
     improvements directly related to security. The conferees note 
     that none of the funds under this account should be used to 
     reduce the local cost of and responsibility for law 
     enforcement activities with Federal funding.

[[Page H8347]]

       Appropriates $10,000,000 for the Office of Inspector 
     General for Operation Safe Home as proposed by the House 
     instead of $5,000,000 as proposed by the Senate.


     revitalization of severely distressed public housing (hope vi)

       Appropriates $550,000,000 to revitalize severely distressed 
     public housing as proposed by the Senate instead of 
     $524,000,000 as proposed by the House. Of the total amount 
     appropriated, $10,000,000 is provided for technical 
     assistance as proposed by the Senate instead of $5,000,000 as 
     proposed by the House. Additionally, as proposed by the 
     Senate, a new demonstration to demolish obsolete elderly 
     public housing projects is funded at $26,000,000 rather than 
     $50,000,000 as proposed by the Senate, with a specific set-
     aside of up to $10,000,000 for Heritage House in Kansas City, 
     Missouri.
       The conferees direct HUD to provide an evaluation of the 
     current status of the HOPE VI program and report to Congress 
     by June 30, 1998. This report should identify and analyze 
     public housing facilities which are eligible for funding as 
     obsolete public housing under the new demonstration program, 
     and should include recommendations on innovative approaches 
     to revitalizing this housing so it meets the special needs of 
     the elderly and the disabled. Finally, the conferees request 
     HUD to advise the Congress on the current extent, status, and 
     cost of deferred maintenance for the entire public housing 
     stock, and to include recommendations on innovative ways for 
     public housing agencies to address more effectively these 
     maintenance needs through the Public Housing Capital Fund and 
     through other funding sources and approaches.


                  native american housing block grants

       Appropriate $600,000,000 for Native American Housing Block 
     Grants instead of $650,000,000 as proposed by the House and 
     $485,000,000 as proposed by the Senate.
       The conferees agree to provide $5,000,000 for the loan 
     guarantee program authorized under section 601 of the Native 
     American Housing Assistance and Self-Determination Act as 
     proposed by the Senate. The House did not provide funds for 
     this program. Like the Native American Housing Block Grants 
     program, the section 601 program is less than one year old. 
     The program was developed to provide Native Americans the 
     ability to gain access to private investment and capital from 
     financial institutions, builders, and nonprofits. This access 
     is necessary if tribes are to improve their economic 
     conditions and reduce housing shortages. At this time, 
     however, few tribes have the financial expertise to utilize 
     the section 601 program effectively. Therefore, for fiscal 
     year 1998, HUD is directed to provide these funds on a 
     demonstration basis to tribes that have experience with 
     complex financial transactions and to study carefully their 
     use so that lessons learned may be incorporated into 
     regulations regarding implementation of this program 
     throughout Indian areas.


           indian housing loan guarantee fund program account

       Appropriates $5,000,000 for the cost of guaranteed loans 
     instead of $3,000,000 as proposed by the House and $6,000,000 
     as proposed by the Senate. This amount will subsidize total 
     loan principal not to exceed $73,800,000.


           capital grants/capital loans preservation account

       Appropriates $10,000,000 for Capital Grants/Capital Loans 
     Preservation, instead of no funds, as proposed by the House. 
     The Senate proposed to fund prepayments with any excess 
     interest reduction payment funds and included additional 
     reforms to the existing program.
       To compensate organizations that incurred costs of 
     appraisals and preparing plans of action, the conferees agree 
     to provide $10,000,000. However, the conferees do not intend 
     to imply that any costs associated with this program 
     constitute an obligation of HUD. The award of close-out costs 
     are to be determined in the sole discretion of the Secretary.
       In addition, the conferees emphasize that adequate funding 
     is provided under the section 8 contract renewal account to 
     provide enhanced vouchers to eligible low- or moderate-income 
     families residing in a federally-assisted project eligible 
     for the Preservation program on the date of the prepayment of 
     voluntary termination.

                   Community Planning and Development


              housing opportunities for persons with aids

       Includes language authorizing HUD to provide grants, of no 
     more than $250,000, to nonprofit organizations that deliver 
     meals to homebound persons who suffer from acquired 
     immunodeficiency syndrome, as proposed by the House. The 
     Senate did not include this provision.


                   community development block grants

       Appropriates $4,675,000,000 for the Community Development 
     Black Grants program, instead of $4,600,000,000 as proposed 
     by the House and Senate, to avert decreases in funding 
     allocations that may be caused by the increased number of 
     set-asides. For the Economic Development and Supportive 
     Services Program, $55,000,000 is provided, including a set-
     aside of up to $5,000,000 for the Moving to Work program. 
     Within the $55,000,000 provided for economic development and 
     supportive services, the conferees have specified that no 
     less than $7,000,000 shall be used for grant for service 
     coordinators and congregate services for the elderly and 
     disabled. The conferees understand this amount to be 
     sufficient to renew all service coordinator and congregate 
     services grants expiring in fiscal year 1998, and intend that 
     all such grants be renewed except in cases where HUD has a 
     specific reason (such as poor performance by the grantee or 
     lack of continuing need) not to renew a particular grant. The 
     conferees emphasize that the $7,000,000 is not a ceiling or 
     target for spending on service coordinators and congregate 
     services, but rather simply an absolute floor to ensure that 
     sufficient funding is reserved for renewals before other 
     allocations are made. The conferees consider service 
     coordinators and other supportive services to be valuable 
     tools for promoting self-sufficiency and improving the 
     quality of life of elderly and disabled residents of public 
     and assisted housing.
       For grants pursuant to section 107, the conferees provide 
     $32,000,000 instead of $25,100,000 as proposed by the House 
     and $30,000,000 as proposed by the Senate, and $7,500,000 for 
     the Community Outreach Partnership Program instead of 
     $11,500,000 as proposed by the House and $12,500,000 as 
     proposed by the Senate. Targeted set-asides within these 
     accounts are moved to the Economic Development Initiative 
     program.
       Additionally, the conferees agree to appropriate 
     $16,700,000 for grants to self-help housing provided pursuant 
     to section 11 of the Housing Opportunity Program Extension 
     Act of 1996, as proposed by the House; $35,000,000 for 
     YouthBuild as proposed by the Senate rather than $30,000,000 
     as proposed by the House; and $15,000,000 for Capacity 
     Building for Community Development and Affordable Housing, as 
     authorized under section 4 of the HUD Demonstration Act of 
     1993, rather than $30,000,000 as proposed by the Senate. The 
     House did not provide funds for this program. Language was 
     included to limit these funds to the original grantees under 
     section 4.
       In providing $35,000,000 for YouthBuild, the conferees have 
     demonstrated that they support the maintenance and expansion 
     of the YouthBuild program. However, in order to promote a 
     comprehensive approach for supporting and expanding 
     YouthBuild, the Secretary is directed to coordinate with the 
     Secretaries of Labor, Health and Human Services, and 
     Education, and the Attorney General, as well as the Directors 
     of School-to-Work Opportunities, the Corporation for National 
     and Community Service, and the Job Corps, in conjunction with 
     YouthBuild USA, in the development and implementation of a 
     plan for expansion of YouthBuild. Youth Build is a 
     comprehensive program that has relevance for all of these 
     agencies.
       Appropriates $138,000,000 for the Economic Development 
     Initiative instead of $50,000,000 as proposed by the Senate 
     and $40,000,000 as proposed by the House. Targeted grants are 
     provided for the following special projects:
       --$3,000,000 to the City of Highland, California, to 
     redevelop the Fifth Street Bridge;
       --$50,000 to the Cheltenham Township in Cheltenham, 
     Pennsylvania, to restore the Cheltenham Park;
       --$250,000 to the City of Jacksonville, Florida, for the 
     Tallyrand Redevelopment Project;
       --$15,000 to the Arab Police Department in Arab, Illinois, 
     for the Multidepartmental Training Complex;
       --$1,250,000 to the Stevens Institute of Business 
     Technology in Hoboken, New Jersey, for the construction of 
     the Laboratory for Business Innovation;
       --$250,000 to the County of Inyo, California, to plan and 
     design the Lower Ownes River project;
       --$50,000 to Springfield Township, Pennsylvania, for the 
     purpose of Springfield's park restoration;
       --$400,000 for the National Center for Appropriate 
     Technology in Butte, Montana, for the purpose of making 
     improvements in the energy efficiency of low-income housing;
       --$200,000 to Ohio Wesleyan University in Delaware, Ohio, 
     for the purpose of renovating Edgar Hall;
       --$1,000,000 to the Garden State Cancer Center in 
     Belleville, New Jersey, for the purpose of diagnosis, 
     detection, and treatment of cancer utilizing such 
     radioimmunodetection and radioimmunotherapy technology;
       --$250,000 to the County of San Bernardino, California, for 
     economic development at Norton Air Force Base;
       --$50,000 to the City of Norristown Borough in Norristown, 
     Pennsylvania, for recreational park development and open 
     space preservation;
       --$500,000 to Olive Crest Homes and Services for Abused 
     Children in Perris, California;
       --$50,000 to Landsdale Borough in Landsdale, Pennsylvania, 
     for recreational parks development and open space 
     preservation;
       --$200,000 to the National Afro-American Museum in 
     Wilberforce, Ohio, for an educational training program;
       --$150,000 to the City of San Diego, California, for the 
     Beach Area Low Flow Storm Diversion program and safety needs;
       --$1,000,000 to the World Congress on Information 
     Technology in Fairfax, Virginia;
       --$600,000 to the City of Kendleton, Fort Bend County, 
     Texas, for the upgrading of the sewer and water system;
       --$2,000,000 to the Long Island Jewish Medical Center in 
     New Hyde Park, New York;
       --$1,500,000 to the Southeastern Pennsylvania Consortium 
     for Higher Education for the purpose of data collection 
     applicable to social public policy;
       --$50,000 to the Roslyn Boys and Girls Club in Roslyn, 
     Pennsylvania, for the completion of renovations;

[[Page H8348]]

       --$500,000 to the Clark County Heritage Center in 
     Springfield, Ohio, for the purpose of acquiring, remodeling, 
     and equipping the Old Marketplace;
       --$1,350,000 to Buena Vista University in Buena Vista 
     County, Iowa, for the Distance Learning Center for Community 
     Outreach and Development;
       --$1,000,000 to the City of Mandeville, Louisiana, to 
     develop a trailhead along the Tammany Trace Rails-to-Trails;
       --$2,000,000 to Goodwill Industries of Northeast 
     Pennsylvania in Scranton, Pennsylvania, to renovate and 
     convert the North Scranton Intermediate School into low-
     income elderly housing;
       --$900,000 to the Museum of Science and Industry in 
     Chicago, Illinois, for the purpose of restoring a U505 
     submarine;
       --$1,750,000 to the Alliance Community Hospital in 
     Alliance, Ohio, for the purpose of developing the Eldercare 
     Complex;
       --$250,000 to the Boys and Girls Club of Greater 
     Washington, D.C., for the purpose of creating a Capitol Hill 
     Youth Anti-Crime program;
       --$450,000 to Rural Enterprises in the City of Durant, 
     Oklahoma, for the purpose of assisting businesses in 
     economically distressed rural areas;
       --$350,000 to the Esperanza Community Housing Corporation, 
     $250,000 to the Central American Resource Center, and 
     $150,000 to the Little Tokyo Service Center in Los Angeles, 
     California, for the purpose of implementing job training, 
     career development, and affordable housing programs;
       --$350,000 to the Plymouth Renewal Center in Louisville, 
     Kentucky, for renovating and providing tutoring, counseling 
     and training programs for at-risk youths;
       --$500,000 to the City of Baldwinville, New York, for the 
     purpose of participating in and revitalizing areas around the 
     Canal Corridor Initiative;
       --$1,000,000 for Pennsylvania Education and 
     Telecommunications Exchange Network (PETE NET), for the 
     purpose of developing a resource-sharing network;
       --$2,000,000 to the Kentucky Highlands Investment 
     Corporation in London, Laurel County, Kentucky, for the 
     purpose of assisting start-up and expanding enterprises;
       --$500,000 for Onondaga Community College, in Onondaga 
     County, New York, for the Applied Technology Center;
       --$1,500,000 to the Geyserville Visitors Center in Sonoma 
     County, California, for the purpose of a visitors and 
     intermodal transportation center;
       --$1,135,000 to the Canaan Community Development 
     Corporation in Louisville, Kentucky, for the purpose of 
     promoting entrepreneurial opportunities in economically 
     deprived areas;
       --$500,000 for the Syracuse Community Health Center in 
     Syracuse, New York, for the purpose of establishing 
     accessible health care centers;
       --$3,220,000 for enlarging and updating the Scarborough 
     Library at Shepherd College in Shepherdstown, WV;
       --$2,000,000 for the State of Maryland for brownfields 
     activities in the Baltimore, MD metropolitan region;
       --$2,000,000 for Ogden Utah, for the economic redevelopment 
     of downtown Ogden, UT;
       --$2,000,000 for the renovation of the Albright-Knox Art 
     Gallery in Buffalo, NY;
       --$400,000 for the completion of a regional landfill in 
     Charles Mix County, SD;
       --$2,500,000 for the construction of a building related to 
     the Bushnell Theater in Hartford, CT;
       --$2,500,000 for exhibit and program development at 
     Discovery Place in Charlotte, NC;
       --$600,000 for the development of the West Maui Community 
     Resource Center in West Maui, HI;
       --$1,350,000 for the renovation of the Paramount Theater in 
     Rutland, VT;
       --$250,000 for the Vermont Science Center in St. Albans, 
     VT;
       --$900,000 for the Lake Champlain Science Center in 
     Burlington, VT;
       --$350,000 for Rutland County Community Land Trust to 
     restore low-income housing throughout the Rutland City, 
     Vermont, area;
       --$2,000,000 for the renovation of the Tapley Street 
     Operations Center in Springfield, MA;
       --$2,000,000 to develop abandoned industrial sites in the 
     city of Perth Amboy, NJ;
       --$2,500,000 to the New Mexico Office of Cultural Affairs 
     for the New Mexico Hispanic Cultural Center;
       --$400,000 for the Riverbend Research and Training Park in 
     Post Falls, ID;
       --$2,500,000 in total funding to the University of Missouri 
     including $2,000,000 for the plant genetics research unit and 
     $500,000 for the Delta Research Telecommunications Resource 
     Center;
       --$2,000,000 for the Cleveland Avenue YMCA in Montgomery, 
     AL, to build a cultural arts center;
       --$1,000,000 for Covenant House in Anchorage, AK;
       --$80,000 to complete construction of the senior center in 
     the city of East Providence, Rhode Island;
       --$350,000 for Kids Bridge/New Jersey's Learning Museum to 
     renovate a site in Red Bank, Monmouth County, New Jersey;
       --$650,000 for the East Los Angeles Community Union 
     (TELACU) to revitalize the economy of East Los Angeles, 
     California;
       --$1,000,000 to the Journey Museum in Rapid City, SD, for 
     Native American and minority outreach program;
       --$500,000 for infrastructure development in Puna, HI;
       --$500,000 for a washeteria and related water facilities 
     for Sheldon Point, Alaska;
       --$1,500,000 for training facilities and equipment for 
     Alaska One;
       --$500,000 to Southwest Economic Development Community 
     Development Corporation of Seattle, WA, for Rainer Valley 
     Square;
       --$500,000 for the completion of The CORE Center in 
     Chicago, IL, a free-standing, specialized, outpatient, HIV 
     and Infectious Disease Center;
       --$1,000,000 for training facilities and equipment in the 
     City of Jackson, Mississippi for a downtown multimodal 
     transit center (phase II);
       --$1,000,000 for the Carter County Chamber of Commerce for 
     trade and development activities for Carter County, Montana;
       --$500,000 for expansion of the community health center in 
     Allendale, SC;
       --$600,000 to University of New Orleans in New Orleans, LA, 
     for Revitalization of Central Cities;
       --$1,000,000 for Morgan State University in Baltimore, MD, 
     for studies related to fields of science and mathematics;
       --$2,000,000 for the expansion and start-up costs 
     associated with the expansion of Hofstra University's 
     Business Development Center;
       --$1,000,000 for community development activities at 
     LeClede Town in St. Louis, MO;
       --$1,500,000 for the University of Colorado for its Health 
     Sciences Center;
       --$2,000,000 to the City of Compton, California, for 
     revitalizing distressed areas;
       --$700,000 for the Philadelphia Development Partnership for 
     economic development in Philadelphia, PA;
       --$700,000 for Lehigh Valley, PA, for the development of an 
     aquatic and fitness center;
       --$1,850,000 to Coastal Enterprises, Inc. of Wiscasset, 
     Maine, for its economic development and rural housing 
     programs;
       --$550,000 to the Town of Easthampton, Massachusetts, for 
     the purchase and refurbishment of a new senior center 
     facility;
       --$950,000 to Memorial Health Care, Inc. for establishment 
     of the Community Health Care Center of Central Massachusetts 
     in Worcester, Massachusetts;
       --$950,000 to the Regional Center for Economic, Community, 
     and Professional Development of the University of North 
     Carolina at Pembroke, for construction of a centralized 
     facility;
       --$950,000 to the Turtle Mountain Community College in 
     North Dakota, for completion of the Turtle Mountain Economic 
     Development and Education Complex;
       --$950,000 to the Ruskin Tropical Aquaculture Laboratory in 
     Ruskin, Florida, for construction and equipment for a 
     hatchery, nutrition laboratory and water quality laboratory;
       --$500,000 to the to the City of Murfreesboro, Tennessee, 
     for renovation work at the Bradley Academy;
       --$450,000 to the City of Hobart, Indiana, for water and 
     sewer line installation in the Green Acres subdivision;
       --$2,400,000 to the Metropolitan Miami Action Plan to 
     initiate the revitalization of the Overtown section of Miami, 
     Florida;
       --$1,400,000 to the City of Toledo, Ohio, for the continued 
     revitalization of the downtown, near downtown corridor, and 
     community service centers;
       --$150,000 to ``Friends of George C. Marshall'' of 
     Uniontown, Pennsylvania, for development of the George C. 
     Marshall Memorial Plaza in Uniontown;
       --$400,000 to the Eureka Coal Heritage Foundation, Inc. of 
     Windber, Pennsylvania, for renovation of the Arcadia Theater;
       --$200,000 to Barnesboro Borough, Pennsylvania, for 
     construction of the West Branch Timber Pedestrian Bridge;
       --$550,000 to the Indiana Free Library, Inc. of Indiana, 
     Pennsylvania, to upgrade and renovate the Indiana Free 
     Library;
       --$1,200,000 to the Pacific Science Center in Seattle, 
     Washington, for refurbishment and expansion;
       --$500,000 to the California Science Museum Foundation in 
     Los Angeles for planning and design of the Pacific 
     Environmental Interactive Center;
       --$400,000 to Chicanos Por La Causa for construction of a 
     small business incubator facility in Phoenix, Arizona;
       --$100,000 to the Urban League of Metropolitan St. Louis, 
     Mo, for purchase and renovation of a building to house its 
     Community Outreach Center;
       --$50,000 to the Harambee Institute of St. Louis, Missouri, 
     for purchase and renovation of an arts education facility;
       --$100,000 to the St. Louis Black Repertory Company of St. 
     Louis, Missouri, for purchase, expansion and renovation of a 
     facility;
       --$100,000 to Better Family Life, Inc. of St. Louis, 
     Missouri, for construction of a new facility to expand 
     existing school-based programs and cultural programs;
       --$50,000 to the Portfolio Gallery and Educational Center 
     of St. Louis, Missouri, renovation and expansion of its 
     cultural arts training and education facility;
       --$50,000 to the City of Wellston, Missouri, for 
     revitalization of its city hall;
       --$50,000 to the City of Kinloch, Missouri, to assist with 
     the city's housing revitalization efforts;
       --$400,000 to Columbia University in New York City for its 
     Audubon Research Park;
       --$100,000 to the Hebrew Academy for Special Children for 
     its school in Rockland County, New York;

[[Page H8349]]

       --$500,000 to Community Build, Inc. of Los Angeles, for 
     development of a business incubator and technology center;
       --$500,000 to Children's Hospital of Oakland, California, 
     for construction of research and laboratory facilities as 
     part of the Martin Luther King, Jr. Plaza project;
       --$500,000 to Nazareth College of Rochester, New York, for 
     library renovation, expansion and equipment;
       --$500,000 to the to the Center for International Business 
     Education at the University of San Francisco for a model 
     program for training in international commerce, environmental 
     management and business ethics;
       --$500,000 for the Urban League of Greater Cleveland, Ohio, 
     for programs in the area of employment, job training, 
     education, housing, and/or elderly services;
       --$500,000 for the Harvard Community Services Center of 
     Cleveland, Ohio, to expand the intergenerational program 
     involving youth and senior citizens;
       --$300,000 to the Helen S. Brown Senior Citizens Center of 
     East Cleveland, Ohio, to complete the renovation of the 
     Center and for expansion of elderly services;
       --$500,000 to Project East, Inc., DBA East Cleveland 
     Straight Talk, of Shaker Heights, Ohio, for substance abuse 
     counseling and prevention services;
       --$500,000 to the Health and Education Institute of the 
     Olivet Housing and Community Development Corporation of 
     Cleveland, Ohio, for health and education initiatives and 
     services;
       --$600,000 to the City of Grafton, West Virginia, for 
     economic development, community revitalization and housing-
     related activities;
       --$350,000 to Preston County, West Virginia, to be 
     distributed as follows: $175,000 for Arthurdale Heritage, 
     Inc. and $175,000 for the Kingwood MainStreet program to 
     pursue economic development, downtown revitalization, and 
     historic preservation initiatives;
       --$450,000 to the City of Parkersburg, West Virginia, for 
     economic development and community revitalization efforts;
       --$800,000 to the City of Lorain, Ohio, for health care 
     conversion initiative at the site of the former St. Joseph's 
     Hospital;
       --$200,000 to the Hampton University Aviation Maintenance 
     Training Learning Center of Hampton, Virginia, to continue 
     the development of courseware central to the curriculum;
       --$100,000 to the Diabetes Institute of Hampton, Virginia, 
     to assist in the development of diagnostic and treatment 
     protocols;
       --$50,000 to the Hampton City Schools Achievable Dream 
     Program in Hampton, Virginia; and
       --$500,000 for the Callaway, Florida, Waste Water Expansion 
     Program, to assist with the city's water separation and 
     expansion plans.
       Language is included providing that cleanup and 
     redevelopment of areas deemed to be Brownfields are eligible 
     activities under CDBG as proposed by the Senate, and to 
     exempt a grant for Oglesby, Illinois, from the public comment 
     waiting period for an environmental assessment as proposed by 
     the House.
       Language is included to create a new rural economic 
     development program funded at $25,000,000 instead of 
     $42,000,000 as proposed by the Senate. HUD is required to 
     target up to $4,000,000 each to areas in Alaska, Missouri, 
     and Iowa.
       Additionally, $25,000,000 is included for a Neighborhood 
     Initiative program to test whether housing benefits can be 
     integrated more effectively with welfare reform initiatives. 
     Of the amount made available, $15,000,000 is provided to the 
     County of San Bernardino, California, to implement its 
     neighborhood initiative program. The County of San Bernardino 
     should work with the cities of San Bernardino, Highland, and 
     Redlands in designing its initiative.
       The conferees encourage HUD, when awarding the Neighborhood 
     Initiative funds, to consider the following factors: 1) 
     economic development strategies that utilize local community-
     based partnerships between businesses, non-profits and the 
     public sector; 2) neighborhood revitalization efforts that 
     integrate sustainable community and building design 
     processes; 3) input by residents and other stakeholders; 4) 
     creation of homeownership opportunities; 5) links between 
     housing programs and welfare reform initiatives in the 
     neighborhood; and 6) links between workforce development 
     strategies and economic development strategies.
       Finally, a new provision is included that limits the use of 
     the $500,000,000 made available under the Community 
     Development Block Grants account in the 1997 Emergency 
     Supplemental Appropriations Act to not more than $3,500,000 
     for the non-Federal cost-share of a levee project at Devils 
     Lake, North Dakota. The conferees direct that the remaining 
     emergency CDBG funds originally allocated by HUD for this 
     project be made available to the State of North Dakota for 
     other emergency activities consistent with the intent of the 
     Supplemental Appropriations and Rescissions Act of 1997 
     (Public Law 105-18). In addition, HUD is directed to provide 
     the State of North Dakota with a waiver allowing it to use 
     its annual CDBG allocation for any remaining portion of the 
     non-Federal cost-share of this project. Finally, language is 
     included that prohibits HUD from providing any additional 
     waivers in excess of $100,000 in emergency CDBG funds for the 
     non-Federal cost-share of projects funded by the Secretary of 
     the Army through the Corps of Engineers.
       This provision was added recognizing the serious risk of 
     flooding facing the community of Devils Lake while addressing 
     serious concerns that emergency CDBG funding has become an 
     unregulated fund of Federal dollars which are allocated 
     without regard to standard requirements or adequate 
     oversight. The conferees are very concerned that the 
     unregulated use of CDBG funds will lead to uses which are 
     unintended and bear little relation to the broad requirements 
     of the traditional CDBG program. The growth of costs and the 
     increasingly broad uses for emergency activities associated 
     with both the CDBG program and the Federal Emergency 
     Management Agency programs are troubling to the conferees, 
     especially because these costs threaten the ability of the 
     VA/HUD Appropriations Subcommittees to fund adequately the 
     other programs within their jurisdiction.


                       brownfields redevelopment

       The conferees have included $25,000,000 to fund HUD's 
     contribution to resolving Brownfields problems. This funding 
     is to be used for activities eligible under the CDBG program. 
     The conferees direct HUD to coordinate activities with other 
     agencies responsible for environmental clean up activities 
     and to provide the committees of jurisdiction with semi-
     annual reports describing coordinated efforts and an 
     explanation of how this program, which has no specific 
     authorization, will be implemented.


              empowerment zones and enterprise communities

       Appropriates $5,000,000 for empowerment zones and 
     enterprise communities for planning purposes. The Senate 
     proposed to fund the program at $25,000,000 and the House did 
     not include funds for this purpose. The conferees expect HUD 
     to develop guidelines for implementing this program.
       Furthermore, HUD is directed to ensure that the ongoing 
     evaluation by Abt Associates evaluates the performance of 
     existing EZ/ECs. The study shall measure the success of 
     existing EZ/ECs in meeting such objectives as job creation, 
     reducing resident unemployment in the EZ/EC, and enhancing 
     public safety. The study should provide recommendations for 
     improving existing EZ/EC performance and crafting more 
     effective guidelines for strategic plans for any possible 
     future EZ/ECs.


                  home investment partnerships program

       Appropriates $1,500,000,000 for the HOME program, as 
     proposed by the House rather than $1,400,000,000 as proposed 
     by the Senate. Of this amount, $20,000,000 is included for 
     Housing Counseling as proposed by the Senate rather than 
     $15,000,000 as proposed by the House, and $10,000,000 is 
     included for a program to demonstrate ways to expand the 
     secondary market for non-conforming loans as proposed by the 
     House. The conferees underscore their intention that this 
     demonstration focus solely on strategies to expand the 
     secondary market for affordable home mortgage credit from 
     private lenders. The conferees agree that participants in the 
     demonstration should be selected on a competitive basis based 
     on the criteria in the statute and contained in the House 
     report. It is expected that the credibility and impact of the 
     demonstration will be maximized to the extent that the 
     Secretary awards priority in the selection process to 
     organizations which have the following characteristics: 1) 
     statewide or multi-state service areas; 2) sophisticated 
     existing data collection capabilities, including adequate 
     loan portfolio monitoring and analysis systems; 3) a 
     demonstrated strong track record of leveraging public-sector 
     funds for secondary market activities; and willingness to 
     match funds awarded under this section with non-Federal 
     funds; and 4) a mix between rural and urban loans.


                       homeless assistance grants

       Deletes language proposed by the Senate which allows HUD to 
     transfer and merge any unobligated balances from Homeless 
     programs into a consolidated account. This issue will be 
     addressed when a consolidated homeless assistance program is 
     authorized and enacted.

                            Housing Programs


                housing programs for special populations

       Includes language authorizing HUD to utilize amounts 
     appropriated to these programs to provide supportive services 
     as proposed by the Senate. The House did not include such 
     language. The conferees believe it is appropriate that 
     supportive services provided for persons who live in 
     buildings financed with these funds should be paid for from 
     these accounts rather than decreasing the scarce supportive 
     services funds provided for families residing in public and 
     assisted housing.
       The conferees reaffirm report language contained in both 
     House and Senate committee reports regarding the Office of 
     Manufactured Housing, but have decided against providing a 
     separate account for that program office.

                     Federal Housing Administration


             FHA-MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

       Transfers not more than $12,112,000 from amounts derived 
     from the FHA-MMI fund to the Office of Inspector General as 
     proposed by the Senate instead of transferring $7,112,000 as 
     proposed by the House.

                    Policy Development and Research


                        research and technology

       Appropriates $36,500,000 for research and technology 
     related to housing issues instead of $39,000,000 as proposed 
     by the House and $34,000,000 as proposed by the Senate.

[[Page H8350]]

       The conferees have provided a set-aside of $500,000 from 
     the Department's Research and Technology account for the 
     National Academy of Public Administration (NAPA) to evaluate 
     HUD's efforts to implement needed management systems and 
     processes. Systems to be evaluated include contracting 
     procedures, basic administrative organization, development of 
     personnel requirements based on meaningful measures, and 
     HUD's compliance with the Government Performance and Results 
     Act. This set-aside augments $1,000,000 appropriated under 
     the 1997 Emergency Supplemental Appropriations Act.
       Currently, the General Accounting Office (GAO) and the HUD 
     Inspector General (IG) are reviewing HUD's contracting 
     requirements and implementation procedures; therefore, the 
     conferees do not intend for NAPA to duplicate the GAO's and/
     or the IG's work. It is intended, however, that NAPA's study 
     will complement the other reviews.

                   Fair Housing and Equal Opportunity


                        fair housing activities

       Appropriates $30,000,000 for fair housing activities, 
     $15,000,000 of which is for activities under the Fair Housing 
     Initiatives Program (FHIP) as proposed by the House instead 
     of $10,000,000 for FHIP as proposed by the Senate.

                     Management and Administration


                         salaries and expenses

       Appropriates $1,000,826,000 for salaries and expenses 
     instead of $1,005,826,000 as proposed by the House and 
     $954,826,000 as proposed by the Senate. This modest decrease 
     from the budget request is included to encourage the 
     Secretary to be more forthcoming about providing information 
     to Congress when it is requested.
       HUD is undergoing Department-wide reorganization to improve 
     delivery of services, management, and performance. The 
     conferees agree that HUD must reorganize the manner in which 
     it operates if it is to survive into the next century. It is 
     the strongly held belief of the conferees that HUD must be in 
     a position, both programmatically and operationally, to 
     provide the highest level of opportunity for Americans to 
     live in decent, safe and affordable homes.
       The reorganization plan suggested by HUD involves 
     consolidating offices and program functions. Additionally, 
     the plan implements Congressional direction to decrease staff 
     levels. Because these actions will change the manner in which 
     HUD's services are provided, and where they are provided, 
     Congress must be kept well-informed about how they are to be 
     implemented, how they will impact Congressionally-mandated 
     programs, and how they will affect services at a local level. 
     Accordingly, the conferees direct HUD to provide the 
     information listed below:

                            Submission Date:

       January 15, 1998--1. Cost-benefit analysis of the newly 
     created offices, including the Assessment Center, the Section 
     8 Center, and the Enforcement Center;
       January 15, 1998--2. Schedule of events--rough estimate of 
     dates for plan implementation, including when HUD will 
     undertake and complete significant actions (i.e., new 
     offices, staff moves);
       Upon submission of President's Budget Request--3. 
     Annualized funding projections needed to carry out the 
     management plan;
       January 15, 1998--4. Explanation of modernization and 
     integration of financial/management information systems and 
     how the systems will develop internal controls and improve 
     HUD's ability to monitor and measure program performance;
       January 15, 1998--5. Explanation of the resources 
     (financial, information, staff) needed to effectively manage 
     and operate HUD's core programs; and
       Enactment of VA/HUD Appropriations Measure--6. Legal 
     analysis of Dole Amendment applicability to HUD's 
     reorganization plan.
       The conferees support the emphasis and function of the 
     Department's proposed Enforcement, Assessment, and Section 8 
     Centers and do not want to impede these much needed reforms. 
     However, as the Management 2020 plan involves location 
     decisions, including moving staff from Headquarters, until 
     Congress is provided with the information listed above, 
     and the committees of jurisdiction have had a reasonable 
     opportunity to review and to comment upon this 
     information, HUD is directed to take no significant 
     actions that involve geographically relocating staff or 
     entering into binding commitments for office space, as 
     related to the three new proposed center locations: 
     Namely, the Assessment Center, the Enforcement Center, and 
     the Section 8 Center.


                      office of inspector general

       Appropriates $66,850,000 for the Office of Inspector 
     General as proposed by the House instead of $57,850,000 as 
     proposed by the Senate. Of this amount, $16,283,000 is 
     transferred from various FHA funds as proposed by the Senate 
     instead of $11,283,000 as proposed by the House and 
     $10,000,000 is provided for Operation Safe Home as proposed 
     by the House instead of $5,000,000 as proposed by the Senate.


             office of federal housing enterprise oversight

                         salaries and expenses

       Appropriates $16,000,000 for the Office of Federal Housing 
     Enterprise Oversight (OFHEO) rather than $16,312,000 as 
     proposed by the House and $15,500,000 as proposed by the 
     Senate. The conferees are concerned about OFHEO's growth as a 
     bureaucracy instead of as an efficient regulatory office.
       Additionally, the conferees encourage OFHEO to meet its 
     primary statutory mission of establishing a balanced and 
     effective risk-based capital standard for the Government 
     Sponsored Enterprises (GSEs), as required under the Housing 
     and Community Development Act of 1992.


                       administrative provisions

       Several provisions included in either the House or Senate 
     bills were not adopted by the conferees. Section numbers have 
     been re-designated accordingly.
       Section 201. Extends certain public and assisted housing 
     reforms for this fiscal year, as proposed by the Senate. The 
     House included language regarding minimum rents.
       Section 203. Waives the requirement that the City of 
     Oglesby, Illinois, have public hearings concerning an 
     environmental assessment, under the Housing and Community 
     Development Act of 1974, as proposed by the House.
       Section 204. Extends a provision that provides an incentive 
     for refinancing projects with FAF bonds to lower the cost of 
     section 8 assistance, as proposed by the Senate.
       Section 206. Reprograms $7,100,000 from an industrial park 
     to be used for a Negro Leagues Baseball Museum and jazz 
     museum, as proposed by the Senate.
       Section 207. Prohibits prosecution of persons under the 
     Fair Housing Act if the person is engaged in lawful activity, 
     as proposed by the Senate.
       Section 208. Requires HUD to maintain public notice and 
     comment rulemaking, as proposed by the Senate.
       Section 209. Authorizes cleanup and economic development of 
     Brownfields as an eligible activity under the CDBG program, 
     as proposed by the Senate.
       Section 210. Permits partial payment of claims on hospital 
     and health care facilities, as proposed by the Senate.
       Section 211. Extends for one year the FHA single family 
     streamlined downpayment program for Alaska and Hawaii as 
     proposed by the Senate. In addition, the conferees direct HUD 
     to study the proposal to streamline the FHA downpayment 
     formula and to explain its impact on the continental United 
     States. The study should examine how the proposed downpayment 
     formula would favorably or adversely affect each State, how 
     it would impact the FHA insurance fund, whether it would 
     improve homeownership opportunities for low- and moderate-
     income families, and whether it would cause inappropriate 
     competition by the FHA with mortgage insurance companies. The 
     study should be completed by March 1, 1998.
       Section 212. Includes language to provide flexibility for a 
     HOPE VI project in New York, as proposed by the Senate.
       Section 213. Includes language to provide HUD with 
     flexibility to make rehabilitation grants and loans in 
     disposing of HUD-owned and HUD-held properties, as proposed 
     by the Senate.
       Section 215. Includes language to provide financing 
     alternatives to enhanced vouchers in certain section 236 
     projects.
       Section 216. Includes language making a technical 
     correction to the nursing home insurance program.
       Section 217. Includes language to preserve funding for 
     existing HOPWA grantees in the State of Wisconsin to correct 
     an anomaly in the formula which can result in the loss of 
     funds for a state when incidence of AIDS in a large city 
     increases. The conferees reaffirm the direction included in 
     the House report for HUD to examine all problems caused by 
     the existing HOPWA formula and recommended improvements.
       Section 218. Includes language to cancel the principal and 
     interest due on HUD-guaranteed water and sewer bonds issued 
     by the Village of Robbins, Illinois.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                         salaries and expenses

       Appropriates $26,897,000 for salaries and expenses as 
     proposed by the House, instead of $23,897,000 as proposed by 
     the Senate.

             Chemical Safety and Hazard Investigation Board


                         salaries and expenses

       Appropriates $4,000,000 for the Chemical Safety and Hazard 
     Investigation Board as proposed by the Senate. The House had 
     provided no funding for the Board.
       The funding provided for fiscal year 1998 will permit the 
     Board to begin start-up operations, including the hiring of 
     up to 20 employees through the fiscal year. While the 
     conferees have agreed to provide funding for the Board, they 
     nevertheless remain concerned that the operational costs not 
     become excessive over the next few years. Rather, the 
     conferees expect the Board to make careful, deliberate 
     decisions with respect to the growth and expansion of both 
     operations and staff. The conferees anticipate that a 
     substantial increase in appropriations in the next few years 
     will not be feasible.

                       Department of the Treasury


              community development financial institutions

   community development financial institutions fund program account

       Appropriates $80,000,000 for the Community Development 
     Financial Institutions Fund, instead of $125,000,000 as 
     proposed by the House. The Senate did not provide an 
     appropriation for this account. The conferees have also 
     included in the bill, language restricting the rate of 
     consultants hired by the Fund.
       The conferees are aware of and share concerns raised 
     regarding implementation of the

[[Page H8351]]

     program. The conferees recognize and commend the Department 
     of the Treasury for taking significant steps in recent months 
     to improve systems, procedures, and policies. The conferees 
     agree that action should be taken to ensure, among other 
     things, that: (a) appropriate and timely documentation is 
     provided for the awards process and the evaluation and 
     selection of applicants to receive assistance; (b) all 
     successful applicants are selected pursuant to uniform 
     standards using an objective evaluation system; (c) no 
     individual involved in the evaluation and selection of 
     applicants has a conflict or apparent conflict of interest; 
     (d) none of the funds provided for this program are used for 
     contracts for management or policy consulting services, 
     except for contracts entered into in accordance with federal 
     acquisition regulations with firms having recognized 
     management or policy consulting expertise, or with 
     individuals or firms having recognized expertise in community 
     development lending or investing or services related to 
     review of applications for grants and other awards from the 
     Fund; and (e) ensure sound and impartial administration. The 
     conferees urge the Department to remain diligent in working 
     on systems to ensure proper accountability and management of 
     the Fund's programs.
       In place of the General Accounting Office report requested 
     by the Senate, the conferees agree that the GAO should 
     conduct a review of the CDFI program and report to the 
     Congress on the implementation and effectiveness of the 
     program in achieving its goals and objectives.

                   consumer Product Safety Commission


                         salaries and expenses

       Appropriates $45,000,000 for the Consumer Product Safety 
     Commission as proposed by the Senate instead of $44,000,000 
     as proposed by the House.

             Corporation for National and Community Service


       national and community service programs operating expenses

       Appropriates $425,500,000 for national and community 
     service programs operating expenses, instead of $200,500,000 
     as proposed by the House and $420,500,000 as proposed by the 
     Senate.
       Limits funds for administrative expenses to not more than 
     $27,000,000, instead of $29,000,000 as proposed by the House 
     and $25,000,000 as proposed by the Senate. This amount 
     includes funds necessary to administer the National Service 
     Trust.
       Limits funds for educational awards to not more than 
     $70,000,000, of which not to exceed $5,000,000 shall be 
     available for national service scholarships for high school 
     students performing community service, instead of $69,000,000 
     and $10,000,000, respectively, as proposed by the House and 
     $59,000,000 and zero, respectively, as proposed by the 
     Senate. The amount for educational awards is higher than the 
     amount in either the House or Senate bill and results from 
     the increase in funding for AmeriCorps grants. The conferees 
     request that the Corporation provide to the Committees on 
     Appropriations a report by June 30, 1998, on the feasibility 
     of privatizing the National Service Trust, including the 
     costs of privatization and recommendations on how 
     privatization could be implemented.
       Limits funds for AmeriCorps grants to not more than 
     $227,000,000, instead of $201,000,000 as proposed by the 
     House and $215,000,000 as proposed by the Senate.
       Inserts language limiting funds for national direct 
     programs to not more than $40,000,000 as proposed by the 
     Senate. The House did not propose a limitation on national 
     direct programs.
       Deletes language proposed by the Senate earmarking 
     $20,000,000 of the appropriation for the America Reads 
     Initiative. The House did not propose such an earmarking. The 
     conference agreement includes $25,000,000 for literacy and 
     mentoring activities.
       Deletes language proposed by the Senate restricting other 
     funds available to the Corporation from being used for 
     personnel compensation and other administrative expenses of 
     certain offices. The House did not propose such language. 
     While the conferees are providing this additional 
     flexibility, the Corporation is expected to provide a 
     detailed explanation in the operating plan on how it plans to 
     coordinate the use of administrative funds from any other 
     agency, office or source to administer its operations.


                      office of inspector general

       Appropriates $3,000,000 for the office of Inspector General 
     as proposed by the Senate, instead of $2,000,000 as proposed 
     by the House.


                       court of veterans appeals

                         salaries and expenses

       Appropriates $9,319,000 for salaries and expenses as 
     proposed by the House, instead of $9,320,000 as proposed by 
     the Senate.

                    Environmental Protection Agency

       Appropriates $7,363,046,000 for the Environmental 
     Protection Agency for fiscal year 1998 instead of 
     $7,205,077,000 as proposed by the House and $6,975,920,000 as 
     proposed by the Senate. The conferees note that the budget 
     agreement between the Congress and the Administration called 
     for the ``operating programs'' of the Agency to be funded at 
     a level totaling just over $3,400,000,000. The funding 
     provided for these operating programs in this agreement 
     totals nearly $3,350,000,000, thus meeting the spirit of this 
     agreement.
       As in past years, the conferees agree that the Agency must 
     limit transfers of funds between programs and activities to 
     not more than $500,000, except that for the Environmental 
     Programs and Management account only, the Agency may transfer 
     funds of not more than $500,000 between programs and 
     activities without prior notice to the Committees, and of not 
     more than $1,000,000 without prior approval of the 
     Committees. No changes may be made to any account or program 
     element, except as approved by the House and Senate 
     Committees on Appropriations, if it is construed to be policy 
     or a change in policy. Any activity or program cited in the 
     joint explanatory statement of the committee of conference 
     shall be construed as the position of the conferees and 
     should not be subject to reduction or reprogramming without 
     prior approval. It is the intent of the conferees that all 
     carryover funds in the various appropriations accounts are 
     subject to normal reprogramming requirements as defined 
     herein.


                         science and technology

       Appropriates $631,000,000 for science and technology 
     instead of $629,223,000 as provided by the House and 
     $600,000,000 as provided by the Senate. The conferees have 
     included new bill language which provides $49,600,000 for a 
     particulate matter research program in lieu of language 
     contained in the House bill.
       The conferees have agreed to the following increases to the 
     budget request:
       1. $1,250,000 for continuation of the California Regional 
     PM 10&2.5 air quality study.
       2. $2,500,000 for EPSCoR.
       3. $500,000 for continuation of a study of livestock and 
     agricultural pollution abatement at Tarleton State 
     University.
       4. $3,000,000 for the Water Environment Research 
     Foundation.
       5. $2,000,000 for continued research on urban waste 
     management at the University of New Orleans.
       6. $1,300,000 for continued oil spill remediation research 
     at the Louisiana Environmental Research Center at McNeese 
     State University.
       7. $2,000,000 for the Mickey Leland National Urban Air 
     Toxics Research Center. The conferees recognize the value of 
     the air toxics research supported by the Mickey Leland 
     National Urban Air Toxics Research Center in Houston, Texas. 
     However, the conferees are aware that the Center has 
     developed its own method to fill vacancies on the Board of 
     Directors. Because the appointment of the Board of Directors 
     provides for Congressional oversight and assures the 
     continued success of the Center and its undertakings, it is 
     the intent of the conferees that the Leland Center 
     immediately revise its method of appointment of Directors 
     consistent with law and with the original Congressional 
     intent regarding appointment of Directors.
       8. $4,000,000 for the American Water Works Association 
     Research Foundation, including $1,000,000 for continued 
     research on arsenic.
       9. $3,000,000 for the National Decentralized Water Resource 
     Capacity Development Project, in coordination with EPA, for 
     continued training and research and development.
       10. $1,500,000 for the Integrated Petroleum Environmental 
     Consortium project, to be cost-shared.
       11. $1,750,000 for continued research at the Environmental 
     Lung Center of the National Jewish Medical and Research 
     Center in Denver.
       12. $6,000,000 for continued research of the Salton Sea, 
     including $1,000,000 to the University of Redlands and 
     $5,000,000 for the Salton Sea Authority.
       13. $2,000,000 for research on treatment technologies 
     relating to perchlorate within the Crafton-Redlands Plume, to 
     be conducted through the East Valley Water District, 
     California.
       14. $2,000,000 for the Lovelace Respiratory Institute to 
     establish a National Environmental Respiratory Center to 
     coordinate research and information transfer.
       15. $1,000,000 for the Center for Air Toxic Metals at the 
     Energy and Environmental Research Center.
       16. $1,000,000 for the Texas Regional Institute for 
     Environmental Studies to identify and test new cost-effective 
     environmental restoration technologies.
       17. $1,000,000 for the Institute for Environmental and 
     Industrial Science to develop new technologies for 
     controlling radioactive waste, solid waste, and other 
     emissions.
       18. $500,000 for the clean air status and trends network.
       19. $1,500,000 for Johns Hopkins University's School of 
     Hygiene and Public Health to establish a National Center for 
     Environmental Toxicology and Epidemiology.
       20. $1,000,000 to establish the Center for Estuarine and 
     Coastal Ocean Environmental Research to coordinate and 
     further ongoing coastal and environmental research being 
     conducted at the University of South Alabama.
       21. $2,000,000 for continuation of an initiative to 
     transfer technology developed in the federal laboratories to 
     meet the environmental needs of small companies in the Great 
     Lakes region, to be accomplished through a NASA-sponsored 
     Midwest regional technology center working in collaboration 
     with an HBCU from the region.
       22. $6,000,000 for the Mine Waste Technology Evaluation 
     Program and Berkeley pit integrated demonstration activities 
     through the National Waste Technology Testing and Evaluation 
     Center.
       23. $1,500,000 to support external research on Pfiesteria. 
     The conferees are concerned about the recent rash of fish 
     killings and

[[Page H8352]]

     human sickness due to a marine biotoxic outbreak labeled 
     Pfiesteria, in east coast waterways. In complementing current 
     local and state efforts, the conferees direct a national 
     research program that would evaluate competitive, peer-
     reviewed proposals to understand the causes, mechanisms, and 
     health and environmental effects of Pfiesteria. Additional 
     funding is appropriated in the environmental programs and 
     management account.
       The conferees have agreed to the following reductions from 
     the budget request:
       1. $5,078,000 from the Climate Change program.
       2. $6,218,000 from the Global Change program.
       3. $2,000,000 from the Advanced Measurement Initiative.
       4. $8,000,000 from the new Environmental Monitoring for 
     Public Access and Community Tracking program.
       5. $5,000,000 from graduate academic fellowships.
       6. $7,000,000 from advanced funding of a planned fiscal 
     year 1998 lease requirement and savings due to a rate 
     recalculation for the Working Capital Fund.
       7. $21,273,400 as a general reduction.
       The conferees are aware that orimulsion, a mixture of 
     bitumen and water, is being considered for generating 
     electricity in the United States. While orimulsion has been 
     used in several countries including Japan, China, Italy and 
     Canada's maritime provinces, it has not been utilized within 
     the United States. Because little is known about the risks 
     associated with the introduction of this new product, the 
     conferees direct EPA to initiate a research activity to 
     provide better scientific data on the qualities and 
     characteristics of this product and the potential 
     environmental impact of its introduction.
       In addition to the funds specifically provided for 
     perchlorate research within the Crafton-Redlands Plume, the 
     conferees direct the Agency to work with the Department of 
     Defense, the National Institute of Environmental Health 
     Sciences, and other appropriate federal and state agencies 
     to, (1) assess the state of the science on the health effects 
     of perchlorates on humans and the environment and the extent 
     of perchlorate contamination of our nation's drinking water 
     supplies, and, (2) make recommendations to the House and 
     Senate Committees on Appropriations within six months of 
     enactment of this Act on how this emerging problem might be 
     addressed.
       The conferees note the important ongoing research 
     activities at EPA to develop a comprehensive view of the air 
     quality impacts resulting from swine confinement operations. 
     The EPA is directed to coordinate these research activities 
     working in conjunction with those efforts currently underway 
     at the Agricultural Research Service and with other public 
     and private research efforts.
       Following consultation with the Environmental Protection 
     Agency, the National Academy of Sciences, and numerous 
     scientific and research and stakeholder groups, the conferees 
     have developed a mechanism which, when implemented, will go 
     far toward increasing the breadth of knowledge and filling 
     research gaps regarding the potential health effects of fine 
     particulate matter (PM). The recommendation of the conferees 
     is meant to build on the research which has already been 
     planned, is underway, or has been completed by EPA, NIEHS, 
     NAS, HEI, and numerous other public and private entities, and 
     its success will rely on the hard work and continued good 
     will of all interested parties.
       Although EPA recently issued a revised standard for PM, the 
     Agency also indicated the standard will have no regulatory 
     impact until after the next National Ambient Air Quality 
     Standards (NAAQS) review, currently planned for 2002. The 
     conferees believe a unique opportunity now exists to put into 
     place the mechanism to establish a comprehensive, peer-
     reviewed, near- and long-term research program which will 
     benefit both the Legislative and Executive branches in 
     decision-making activities regarding PM in the coming years.
       To this end, the conferees have included bill language 
     which specifically provides $49,600,000 for particulate 
     matter research, and further provides that within 30 days of 
     enactment of this Act, EPA shall enter into a contract or 
     cooperative agreement with the National Academy of Sciences 
     (NAS) to develop a comprehensive, prioritized, near- and 
     long-term particulate matter research program, as well as a 
     plan to monitor how this research program is being carried 
     out by all participants in the research effort. The conferees 
     intend the NAS to develop a near-term research plan within 
     four months of execution of the contract with EPA, and expect 
     a long-term plan to be completed within twelve months of 
     execution of the contract. Both plans should be developed on 
     as close to a consensus basis as is practicable following 
     consultation and comprehensive discussions with, but not 
     limited to, representatives of the EPA, the National 
     Institute of Environmental Health Sciences (NIEHS), the 
     Department of Energy (DOE), and the National Oceanic and 
     Atmospheric Administration (NOAA), as well as representatives 
     from such organizations as the Health Effects Institute 
     (HEI), the North American Research Strategy for Tropospheric 
     Ozone (NARSTO), the Chemical Industry Institute of Technology 
     (CIIT), the Lovelace Inhalation Toxicology Research 
     Institute, the American Lung Association, the Electric Power 
     Research Institute (EPRI), EPA's Science Advisory Board and 
     Clean Air Scientific Advisory Committee, and other qualified 
     personnel representing government, industry, and the 
     environmental community. Upon completion of the research 
     plans, the NAS shall simultaneously provide copies to the 
     Congress, to EPA, and to all participating parties.
       It is the intention of the conferees that the plan is to be 
     the principal guideline for the Agency's particulate matter 
     research program over the next several years. The conferees 
     expect the Agency to implement the plan, including the 
     conduct of appropriate peer review and the distribution of 
     intramural and extramural funds, in a manner which assures 
     that research as determined in the plan will proceed in an 
     orderly and timely fashion, and according to the priority 
     basis outlined by NAS. The conferees also expect the NAS to 
     monitor the implementation of the research plan and 
     periodically report to the Congress as to the progress of the 
     NAS plan. Should EPA, after its own analysis, disagree with 
     any research topic or priority ranking as determined in the 
     plan, or with any other aspect of the plan, the conferees 
     direct the Agency to provide the Congress with a detailed 
     analysis of such a disagreement, as well as with a 
     description of what the Agency proposes in lieu thereof. EPA 
     is expected to move forward immediately with its PM research 
     program as outlined in the fiscal year 1998 budget 
     submission. Upon delivery of the NAS research plan, however, 
     the conferees expect the Agency and other federal entities as 
     listed above to review their ongoing particulate matter 
     research activities and, where appropriate, re-focus such 
     activities so as to be consistent with the NAS research plan. 
     The funds provided above the budget request should be 
     targeted to filing research gaps outlined by NAS and not 
     already planned for fiscal year 1998.
       In administering the research plan, the conferees expect 
     the Agency to be responsible for the timely announcement of 
     all requests for research proposals, for the thorough review 
     of such proposals, and for the granting and auditing of all 
     funds to conduct such research proposals. Given the 
     importance of developing and publishing as much new research 
     as possible prior to the next NAAQS review planned for PM, 
     the Agency should take every step possible to expedite the 
     delivery of available research funds for both intramural and 
     extramural recipients. Moreover, in the making of specific 
     grants or, in the case of other governmental agencies, a 
     cooperative research agreement pursuant to the research plan, 
     the Agency should be mindful of the various talents and 
     expertise of each of the aforementioned organizations or 
     other research grant applicants may have so as to maximize to 
     the greatest extent possible the quality of the research that 
     is to be conducted.
       The conferees understand that the most immediate, or 
     ``near-term'' PM research needs include, but are not limited 
     to, topics such as toxicological and biological mechanisms, 
     source apportionment, human exposure assessment and 
     monitoring, ambient measurement methods, and epidemiology. 
     NAS is thus expected to focus on these as well as other high 
     priority topics as part of its near-term research plan.
       In addition, up to $8,000,000 of the funds provided herein 
     are to be used to create up to five university-based research 
     centers focused on PM-related environmental and health 
     effects. EPA will select these centers through a competitive 
     peer review process and will ensure consistency with the 
     final research plan formulated by the process outlined above. 
     The centers program is intended to help address the most 
     pressing unanswered questions involved in the air particulate 
     field. A governing criterion for the selection of the 
     proposed centers should be their ability to bring together 
     bio-medical and public health scientists, engineers, 
     environmental scientists, economists, and policy analysts as 
     part of a coordinated and comprehensive data analysis and 
     research effort.
       The conferees direct that, prior to completion of the 
     research plan, adequate funds be made available to support on 
     ongoing effort to conduct a thorough inventory of all federal 
     and non-federal research on particulate matter, to initiate 
     key term research, and to conduct a thorough reanalysis of 
     all key long-term studies relating to particulate matter. 
     Priority in the award of grants as outlined in the preceding 
     sentence should be given to organizations which are 
     established independent research institutes funded in 
     partnership with EPA.
       Finally, the conferees expect that all research data 
     resulting from this funding will become available to the 
     public, with proper safeguards for researchers' first right 
     of publication, for scientific integrity, for individuals 
     participating in studies, for proprietary commercial 
     interests, and to prevent scientific fraud and misconduct.
       The issue of the new particulate matter standards as 
     outlined by EPA in July of this year, and the potential 
     regulations that may result from these new standards, has 
     resulted in an emotional and politically charged debate 
     principally on the potential economic impacts of regulations 
     based on the new standard. What has unfortunately been 
     diminished in these debates is the almost universal 
     recognition that considerable scientific questions relative 
     to particulate matter remain to be answered. The conferees 
     recognize that while reasonable people may differ as to the 
     interpretation of the facts and that different policy 
     judgments may be arrived at, sufficient facts are not yet 
     available to proceed with future regulations for a

[[Page H8353]]

     new particulate standard. The conferees note that this may be 
     the only realistic opportunity to enlist the support of both 
     the public and private sectors to maximize the use of science 
     so as to better determined the answers that will some day 
     guide future regulatory actions regarding particulate matter.


                 environmental programs and management

       Appropriates $1,801,000,000 for environmental programs and 
     management as proposed by the Senate instead of 
     $1,763,352,000 as proposed by the House.
       The conferees have agreed to the following increases to the 
     budget request:
       1. $2,500,000 for the Michigan Biotechnology Institute for 
     continued development of viable cleanup technologies.
       2. $900,000 for the Lake Wallenpaupack, Pennsylvania 
     environmental restoration project.
       3. $372,000 for the Saint Vincent watershed environmental 
     restoration project.
       4. $500,000 for continued activities of the Small Business 
     Pollution Prevention Center at the University of Northern 
     Iowa.
       5. $1,000,000 for the National Estuary Program, including 
     $400,000 for Barnegat Bay. In addition, the conferees note 
     their support for the full budget request for the Agency's 
     South Florida/Everglades initiative, including funding for 
     the EPA office in South Florida.
       6. $2,372,000 for the Great Lakes Program. Included in the 
     total program level is $14,700,000 for the Great Lakes 
     National Program Office.
       7. $250,000 for design for a non-indigenous species 
     dispersal barrier in the Chicago shipping and sanitary canal 
     pursuant to Sec. 1202 of the National Invasive Species Act, 
     to be cost-shared.
       8. $500,000 for continued work on the Ohio River watershed 
     pollutant reduction program, including a study of dioxin 
     levels in the Basin, to be cost-shared.
       9. $2,000,000 for continuation of the Sacramento River 
     Toxic Pollution Control Project, to be cost-shared.
       10. $2,500,000 for a water reuse demonstration project in 
     Yucca Valley ($800,000) and a groundwater treatment 
     demonstration project in 29 Palms ($1,700,000), California.
       11. $700,000 for ongoing activities at the Canaan Valley 
     Institute.
       12. $3,000,000 for the Southwest Center for Environmental 
     Research and Policy (SCERP).
       13. $4,000,000 for the National Institute for Environmental 
     Renewal to establish a regional environmental data center, 
     and to develop an integrated, automated water quality 
     monitoring and information system for watersheds impacting 
     the Chesapeake Bay.
       14. $500,000 for continuation of the Small Water Systems 
     Institute at Montana State University.
       15. $5,325,000 for rural water technical assistance 
     activities and groundwater protection bringing the total 
     program to $13,325,000 with distribution as follows: 
     $8,200,000 for the National Rural Water Association; 
     $2,100,000 for Rural Community Assistance Program; $400,000 
     for the Groundwater Protection Council; $1,550,000 for Small 
     Flows Clearinghouse; $1,000,000 for the National 
     Environmental Training Center; and $75,000 for the National 
     Groundwater Foundation.
       16. $2,000,000 for an environmental education center in 
     Highland, California.
       17. $3,000,000 for continuation of the New York and New 
     Jersey dredge decontamination project.
       18. $1,000,000 for continued work on the water quality 
     management plan for the Skaneatles, Otisco and Owasco Lake 
     watersheds.
       19. $400,000 for continued work on the Cortland County, New 
     York aquifer protection plan.
       20. $300,000 for the NAS to conduct a study of the 
     effectiveness of EPA's inspection and maintenance programs.
       21. $400,000 for a non-profit organization to implement an 
     action plan to accelerate the international phase-out of 
     leaded gasoline.
       22. $2,000,000 for the creation of five small public water 
     system technology assistance centers pursuant to section 
     1420(f) of the Safe Drinking Water Act, as amended.
       23. $500,000 for a waste water reuse study in the 
     Victorville, California area.
       24. $3,400,000 for Lake Weequahic cleanup efforts 
     ($3,000,000) and water quality initiatives at Lake Hopatcong 
     ($400,000), New Jersey.
       25. $1,000,000 ($500,000 each) for small public water 
     system technology centers at the University of Missouri-
     Columbia and at Western Kentucky University.
       26. $3,000,000 to continue the demonstration project 
     involving leaking fuel tanks in rural Alaska villages.
       27. $250,000 for the Nature Conservancy of Alaska for 
     protection of the Kenai River watershed.
       28. $1,250,000 to continue the onsite wastewater treatment 
     demonstration program through the Small Flows Clearinghouse, 
     including efforts initiated last year in flood-ravaged areas.
       29. $2,000,000 for the New York City watershed protection 
     program.
       30. $500,000 for the Treasure Valley hydrologic project.
       31. $2,500,000 for the King County, Washington molten 
     carbonate fuel cell demonstration project at the Renton 
     wastewater treatment plant.
       32. $$800,000 for the National Center for Vehicle Emissions 
     Control and Safety to establish an On-Board Diagnostic 
     Research Center.
       33. $500,000 to continue the Compliance Assistance Center 
     for Painting and Coating Technology.
       34. $200,000 to complete the cleanup of Five Island Lake.
       35. $500,000 for the Ala Wai Canal watershed improvement 
     project.
       36. $400,000 for the Maui algal bloom project.
       37. $100,000 for the Design for the Environment for Farmers 
     Program to address the unique environmental concerns of the 
     American Pacific area and the need to develop and adopt 
     sustainable agricultural practices for these fragile tropical 
     ecosystems.
       38. $1,500,000 for the Lake Champlain management plan.
       39. $600,000 for the final year of funding for the solar 
     aquatic wastewater treatment demonstration in Burlington, 
     Vermont, to be cost-shared.
       40. $1,000,000 for the Alabama Department of Environmental 
     Management to coordinate a model water/wastewater operating 
     training program.
       41. $150,000 to establish a regional training center at the 
     Kentucky Onsite Wastewater Center.
       42. $550,000 for the Idaho water initiative.
       43. $1,750,000 for the Three Rivers watershed protection 
     demonstration project, to develop an overall master plan to 
     eliminate more than 40 separate sanitary sewer overflows in 
     the Three Rivers area of Allegheny County, Pennsylvania.
       44. $750,000 to continue the Resource and Agricultural 
     Policy Systems program.
       45. $1,250,000 for the design of an innovative granular 
     activated carbon water treatment project in Oahu.
       46. $2,000,000 for the Food and Agricultural Policy 
     Research Institute's Missouri Watershed Initiative project to 
     link economic and environmental data with ambient water 
     quality.
       47. $1,500,000 for the National Alternative Fuels Training 
     program.
       48. $300,000 for the California Urban Environmental 
     Research and Education Center.
       49. $1,000,000 to continue the implementation of a 
     wetlands-based potable water reuse program for the City of 
     West Palm Beach.
       50. $700,000 for the Long Island Sound office.
       51. $2,000,000 for the University of Missouri Agroforestry 
     Center to support the agroforestry floodplain initiative on a 
     partnership basis.
       52. $300,000 for the Northeast States for coordinated air 
     use management.
       53. $750,000 for the Chesapeake Bay Program to initiate a 
     small watershed grants program for the implementation of 
     cooperative tributary basic strategies that address the Bay's 
     water quality and living resource needs.
       54. $1,300,000 for environmental justice small community 
     grants, bringing the total program to $2,000,000.
       55. $240,000 for the water quality testing program along 
     the New Jersey and New York shorelines.
       56. $1,000,000 for the Soil Aquifer Treatment research 
     program for indirect potable reuse of highly treated domestic 
     wastewater being conducted in Arizona and California.
       57. $1,500,000 for wastewater training grants under section 
     104(g) of the Clean Water Act.
       58. $2,000,000 for the National Academy of Public 
     Administration to design and manage a series of independent 
     evaluations of recent EPA initiatives to improve the 
     effectiveness and efficiency of EPA activities. These studies 
     shall also assess how lessons learned can be built into 
     ongoing agency programs. The conferees note that EPA has yet 
     to develop a program evaluation capacity, a critical element 
     of meeting the requirements of the Government Performance and 
     Results Act and ensuring the most effective allocation of 
     resources. EPA is to enter into an agreement with NAPA within 
     90 days, so that the reports may be made available to the 
     Congress within two years.
       59. $1,500,000 to support response and monitoring efforts, 
     public information functions, and cross-Agency coordination 
     and analysis to address the causes, mechanisms, and health 
     and environmental effects of Pfiesteria, as described in the 
     Science and Technology account.
       60. $400,000 to continue efforts to ensure smooth 
     implementation of notification of lead-based paint hazards 
     during real estate transactions through the Alliance to End 
     Childhood Lead Poisoning.
       The conferees have agreed to the following decreases from 
     the budget request:
       1. $693,000 from managerial support within the Office of 
     the Administrator.
       2. $1,000,000 from GLOBE.
       3. $9,000,000 from the Montreal Protocol Multilateral Fund.
       4. $54,000,000 from Climate change action plan programs.
       5. $5,500,000 from Office of Enforcement and Compliance 
     Assurance programs. No reduction is to be applied to 
     compliance assistance activities.
       6. $1,734,000 from the Office of International Activities 
     global and regulatory environmental risk reduction program.
       7. $10,000,000 from the new environmental monitoring for 
     public access and community tracking program.
       8. $10,107,000 from specific reinvention programs.
       9. $3,900,000 from the new Urban Livability program.
       10. $10,000,000 from the increase requested for sustainable 
     development challenge grants.
       11. $2,000,000 from rental costs.

[[Page H8354]]

       12. $55,115,900 as a general reduction.
       The conferees note that full funding has been provided for 
     the Chesapeake Bay Program including $833,000 for atmospheric 
     deposition research activities.
       The conferees are concerned with the Agency's perceived 
     inflexibility regarding the implementation of the enhanced 
     vehicle emissions and inspection programs in a number of 
     states. Despite passage of the National Highway System 
     Designation Act of 1995 which included language stating that, 
     ``the Administration shall not require adoption or 
     implementation by a state of a test-only I/M 240 enhanced 
     vehicle inspection and maintenance program,'' EPA has until 
     very recently required that states using equipment other than 
     I/M 240 perform mass emission transient testing (METT) on 
     0.1% of their affected vehicles, yet has only approved I/M 
     240 equipment to conduct the METT. It was the intent of 
     Congress to prohibit the mandating of I/M 240 for any 
     purpose, whether for emission testing or evaluation testing. 
     Therefore, it is expected that the Agency will resolve this 
     issue with the affected states and develop a non-METT test 
     consistent with Congressional intent. The Agency is urged to 
     develop alternatives which, as required by the Clean Air Act, 
     are based on data collected during inspection and repair of 
     vehicles. The alternatives also should be seamless to the 
     customer and not result in increased costs to the customer or 
     service station owner, and also not result in a direct or 
     indirect penalty to the state that is not using METT. In the 
     event that the Agency does not develop a non-METT evaluation 
     method, the conferees would expect to address this issue in 
     legislation.
       The conferees continue to note their serious concerns 
     regarding the new National Pollutant Discharge Elimination 
     System (NPDES) general permit recently proposed by EPA's 
     Region IV. This issue was raised in the House Report 
     accompanying H.R. 2158, and it appears the Agency has done 
     little to address the concerns raised in that document. The 
     conferees therefore direct EPA's Region IV to adopt an NPDES 
     general permit for offshore oil and gas extraction which is 
     substantially similar in its terms and conditions to that 
     adopted and used successfully by EPA's Region VI.
       The conferees are aware that recent testing conducted at 
     Lake Tahoe has shown abnormal amounts of volatile compounds, 
     including benzene, toluene, and xylene. The conferees 
     recommend that EPA consider conducting an analysis and 
     produce a report detailing the actual levels of contaminants, 
     sources, and recommendations to protect this resource.
       The conferees urge that EPA's recently announced 
     stakeholder process for the section 313 program be 
     expeditiously undertaken and that the recommendations be 
     adopted prior to the filing of any reports required under the 
     recent expansion of the program. EPA should dedicate the 
     necessary resources to ensure this process can develop 
     materials and procedures that will simplify the reporting 
     burden, especially for small businesses, while also improving 
     the ability to communicate information to the public.
       The conferees direct the EPA Administrator to consider for 
     funding the NUI proposal for a large-scale demonstration 
     pilot project in correlation with the dredging contamination 
     technology effort currently underway at Brookhaven National 
     Laboratory.

                      Office of Inspector General

       Appropriates $28,501,000 for the office of inspector 
     general as proposed by the House instead of $28,500,000 as 
     proposed by the Senate.


                        buildings and facilities

       Appropriates $109,420,000 for buildings and facilities 
     instead of $182,120,000 as proposed by the House and 
     $19,420,000 as proposed by the Senate.
       For the new, consolidated research facility at Research 
     Triangle Park, North Carolina, the conferees have agreed to 
     an additional funding component for fiscal year 1998 of 
     $90,000,000. The Agency has indicated this level of funding 
     is sufficient to continue ongoing planning and construction 
     as scheduled throughout the fiscal year. The conferees have 
     also included bill language which raises the authorized 
     construction cost ceiling for this project to $272,700,000. 
     This level of authorization is necessary to permit the 
     construction of the building--including the high bay 
     facility, the computer center, and the child care center--as 
     originally designed. Prior to the expenditure of funds 
     relative to these three facilities, however, the Agency is 
     directed to provide a cost/benefit analysis which justifies 
     their inclusion as proposed in the original construction 
     plan.


                     hazardous substance superfund

       Appropriates $2,150,000,000 for hazardous substance 
     superfund instead of $1,500,699,000 as proposed by the House 
     and $1,400,000,000 as proposed by the Senate.
       The conferees have agreed to the following fiscal year 1998 
     program levels:
       $990,500,000 for the superfund response cleanup program, 
     including the full budget request for the Brownfields 
     program.
       $174,000,000 for the enforcement program.
       $129,000,000 for management and support, including 
     $11,641,000 for transfer to the Office of Inspector General.
       $35,000,000 for research and development activities, to be 
     transferred to the Science and Technology account.
       $58,000,000 for the National Institute of Environmental 
     Health Sciences, including $23,000,000 for worker training 
     and $35,000,000 for research activities.
       $74,000,000 for the Agency for Toxic Substances and Disease 
     Registry. The amount provided is intended to enable ATSDR to 
     reduce significantly the backlog of more than 200 hazardous 
     waste sites requiring public health activities and to conduct 
     a child health initiative. Within 30 days of enactment of 
     this Act, ATSDR is to provide a detailed operating plan to 
     the Committees on Appropriations. In addition, ATSDR 
     periodically is to keep the Committees apprised of progress 
     in reducing the backlog, efforts related to the child health 
     initiative, and proposed new activities. Within the funds 
     provided herein, $4,000,000 is for minority health 
     professions, $2,500,000 is for continuation of a health 
     effects study on the consumption of Great lakes fish, and 
     $2,000,000 is for continued work on the Toms River, New 
     Jersey cancer evaluation and research project.
       $39,500,000 for interagency activities.
       The conferees note that $100,000,000 of the funds provided 
     herein shall not become available for obligation until 
     September 1, 1998. Further, $650,000,000 of the funds 
     provided herein shall not become available until October 1, 
     1998, and shall be available for obligation only if specific 
     reauthorization of the Superfund program occurs by May 15, 
     1998.
       While the conferees have provided the full budget request 
     for the Brownfields program, concerns remain regarding the 
     Agency's legal authority to utilize Superfund dollars to 
     establish revolving funds which in turn would be used to 
     clean up sites which are neither emergency in nature nor 
     eligible for NPL listing. Bill language has therefore been 
     included which prohibits the use of funds under this heading 
     for revolving loan funds unless specifically authorized in 
     subsequent legislation.
       Again this year, the conferees direct that all fiscal year 
     1997 carryover funds be used for additional response action/
     cleanup efforts. In addition, in order to enhance the fiscal 
     year 1998 response action/cleanup program, the conferees 
     direct the Agency to move expeditiously to deobligate and 
     recapture as much unspent prior-year cleanup funds as 
     possible.
       The conferees reiterate the position of the House that 
     strongly encourages the Agency to implement a fixed-price, 
     at-risk contracting proposal for the clean-up of the Carolina 
     Transformer Site in North Carolina.
       With regard to the Agriculture Street Landfill Superfund 
     site in New Orleans, the conferees are aware of the potential 
     health risks associated with remediating the undeveloped 
     property without permanent or temporary relocation of the 
     nearby residents, or some other responsible mitigation 
     effort. The conferees thus strongly urge the Agency to stay 
     the remediation of the site, pursuant to its Record of 
     Decision of September 2, 1997, until this matter can be 
     satisfactorily resolved.
       The conferees also reiterate the concern as expressed in 
     the House Report accompanying H.R. 2158 regarding the EPA's 
     response to certain ``emergencies.'' Questions of both legal 
     authority and the excessive expenditure of funds outside the 
     scope of the Agency's operating plan remain very troubling. 
     The conferees therefore direct the EPA to notify the 
     Committees on Appropriations within 72 hours of the Agency's 
     undertaking an emergency response at non-NPL sites that is 
     expected to exceed $5,000,000 in total cost.
       Last year, the conferees included language directing the 
     EPA Administrator to begin construction immediately at the 
     Pepe Field Superfund site in Boonton, New Jersey. Due to a 
     change in the remedy by the EPA, the construction has again 
     been delayed. The conferees are concerned with this delay and 
     direct the Administrator to begin construction immediately.


                leaking underground storage tank program

       Appropriates $65,000,000 for the leaking underground 
     storage tank program as proposed by the Senate instead of 
     $60,000,000 as proposed by the House. Language is also 
     included which provides a maximum of $7,500,000 for the 
     program's administrative costs as proposed by the Senate 
     instead of $9,100,000 as proposed by the House.
       The conferees direct that not less than 85 percent of the 
     funds provided be allocated to the States.


                           oil spill response

       Appropriates $15,000,000 for oil spill response as proposed 
     by the House and the Senate. Bill language is also included 
     which provides a maximum of $9,000,000 for the program's 
     administrative costs as proposed by the House instead of 
     $8,500,000 as proposed by the Senate.


                   state and tribal assistance grants

       Appropriates $3,213,125,000 for state and tribal assistance 
     grants instead of $3,026,182,000 as proposed by the House and 
     $3,047,000,000 as proposed by the Senate.
       Bill language provides the following program levels:
       $1,350,000,000 for Clean Water Capitalization Grants.
       $725,000,000 for Safe Drinking Water Capitalization Grants. 
     The conferees note that amounts provided for drinking water 
     state revolving funds are available for national set-asides 
     outlined in section 1452; however, health effects research is 
     funded in the Science and Technology account as proposed by 
     the Administration.
       $75,000,000 for the United States-Mexico Border Program.

[[Page H8355]]

       $50,000,000 for colonias in Texas, including bill language 
     which provides a 20% match for these funds. The match 
     requirement may be fulfilled through the commitment of state 
     funds for either loans or grants for construction of 
     wastewater or water systems serving colonias and the match 
     may also consist of payment on bond interest associated with 
     loans or grants for construction of wastewater and water 
     systems. With respect to prior appropriated funds for 
     colonias, the match requirement may be fulfilled through the 
     commitment of state funds for either loans or grants for 
     construction of wastewater systems serving colonias and may 
     also consist of payment on bond interest associated with 
     loans or grants for construction of wastewater systems.
       $15,000,000 for Alaska rural and Native Villages, to be 
     cost-shared.
       $745,000,000 for state and tribal categorical grants, 
     including increases above the budget request of $24,743,000 
     for particulate matter monitoring and data collection and 
     $5,000,000 for section 319 non-point source pollution grants. 
     Language is included to direct that the PM monitoring and 
     data collection grants be issued pursuant to section 103 of 
     the Clean Air Act so as not to require a state, tribal, or 
     local cost share. The conferees agree that performance 
     partnership grants and statutorily authorized transfers 
     between state revolving funds are both exempt from the 
     Congressional reprogramming limitations. Finally, language is 
     included which clarifies that, as provided in the authorizing 
     statutes for the various program grants, eligible recipients 
     have included since fiscal year 1996 interstate agencies, 
     tribal consortia, and air pollution control agencies, as well 
     as States and tribes.
       $253,125,000 for grants for construction of ``special 
     needs'' wastewater, water treatment and drinking water 
     facilities, and for groundwater protection infrastructure.
       Bill language has been included which: (1) authorizes cross 
     collateralization of clean water and safe drinking water 
     state revolving funds as security for bond issues; (2) 
     authorizes the Administrator to make grants to federally 
     recognized Indian governments for the development of multi-
     media environmental programs; (3) makes it possible for EPA 
     to use funds under this account for specific programs and 
     purposes in state and tribal areas when such state or tribe 
     does not have an acceptable program in place; and (4) 
     authorizes the Administrator to make a grant of deobligated 
     FWPCA section 205 funds for wastewater treatment facilities 
     in Monroe County, Florida.
       Finally, bill language has been included which provides for 
     an 80/20 cost share for the use of capitalization funds for 
     the District of Columbia. The provision, which is intended to 
     permit the District to move aggressively in making necessary 
     repairs and upgrades in its wastewater treatment facilities, 
     will sunset in two years.
       The conferees agree that the special needs funds are 
     provided as follows:
       1. $50,000,000 for Boston Harbor wastewater needs.
       2. $3,000,000 for continued wastewater needs in Bristol 
     County, Massachusetts.
       3. $8,000,000 for New Orleans wastewater needs.
       4. $5,000,000 to implement drinking water facility 
     improvements under Title IV and to implement combined sewer 
     overflow (CSO) projects in Richmond ($2,500,000) and 
     Lynchburg ($2,500,000), Virginia.
       5. $14,000,000 for continuation of the Rouge River National 
     Wet Weather Demonstration project.
       6. $5,000,000 for wastewater and water system needs of the 
     Omnalinda Water Association ($500,000); the Jenner Township 
     Sewer Authority ($2,600,000), and the North Fayette County 
     Municipal Authority ($1,900,000), Pennsylvania.
       7. $13,000,000 for the Millcreek Tube Sewer upgrade/
     combined sewer overflow project.
       8. $3,000,000 for phase one of Sacramento's wastewater 
     treatment facility upgrade.
       9. $10,000,000 for planning and implementation of a storm 
     water abatement system in the Doan Brook Watershed Area, 
     Ohio.
       10. $6,900,000 for wastewater infrastructure needs for 
     Kenner ($5,000,000) and Baton Rouge ($1,900,000), Louisiana.
       11. $2,250,000 for Ogden, Utah's sanitary storm sewer and 
     drinking water distribution systems.
       12. $2,500,000 to assist the Bad Axe, Michigan water 
     crisis.
       13. $10,000,000 to complete the wastewater improvement 
     program at the Clear Lake Sanitary District, Iowa.
       14. $7,000,000 for combined sewer overflow requirements in 
     Lycoming County ($4,000,000) and for wastewater needs of the 
     Pocono/Jackson Township Joint Authority ($1,500,000) and 
     Smithfield Township in Monroe County ($1,500,000), 
     Pennsylvania.
       15. $1,200,000 for phase two of the Geysers Effluent 
     Project in Northern California.
       16. $14,000,000 for continued clean water improvements of 
     Onondaga Lake.
       17. $5,000,000 for wastewater and drinking water system 
     needs in Clearfield, Mifflin, Snyder and Fulton Counties 
     ($1,250,000); Decatur Township ($150,000); Lawrenceville 
     Township ($300,000); Lyleville ($300,000); Lewistown 
     ($1,000,000); McVeytown ($500,000); Adams Township and Port 
     Trevorton ($500,000); Middleburg ($500,000); and 
     McConnellsburg ($500,000), Pennsylvania.
       18. $10,000,000 for water supply and wastewater needs for 
     the City of Burnside ($2,000,000); the City of Williamsburg 
     ($3,000,000); the City of Wayland ($1,500,000); the City of 
     Hyden ($1,500,000); and the Morgan County Water District 
     ($2,000,000), Kentucky.
       19. $1,275,000 for wastewater needs for East Mesa 
     ($700,000), West Mesa ($500,000), and Lordsburg ($75,000), 
     New Mexico.
       20. $4,000,000 for an alternative water supply system in 
     Jackson County, Mississippi.
       21. $2,000,000 for wastewater facilities and improvements 
     in Essex County, Massachusetts.
       22. $2,000,000 for the Milwaukee Metropolitan Sewerage 
     District urban watershed restoration project (Lincoln Creek).
       23. $7,150,000 for export pipeline replacement to protect 
     Lake Tahoe.
       24. $7,000,000 for wastewater facility and sanitary system 
     improvements in Burlington, Iowa.
       25. $7,000,000 for the Ashley Valley, Utah sewer management 
     board for wastewater improvements.
       26. $5,000,000 for water systems improvements in the Virgin 
     Valley Water District, Nevada.
       27. $2,000,000 for the town of Epping, New Hampshire, for 
     wastewater treatment upgrades.
       28. $4,300,000 for wastewater improvements in Queen Anne's 
     County, Maryland, ($2,300,000); and biological nutrient 
     removal of sewage on the Pocomoke River, Maryland 
     ($2,000,000).
       29. $6,000,000 for water/wastewater improvements in the 
     Moreland/Riverside area of Bingham County ($3,000,000); the 
     City of Rupert ($2,000,000); and the Rosewell and Homedale 
     areas ($1,000,000) of Idaho.
       30. $5,000,000 for Missoula, Montana sewer system 
     improvements.
       31. $3,000,000 for the Milton, Vermont wastewater treatment 
     plant project.
       32. $5,000,000 for sewage infrastructure improvements for 
     Connellsville and Bullskin Townships in Fayette, Pennsylvania 
     ($2,500,000) and Fallowfield Township, Pennsylvania 
     ($2,500,000).
       33. $6,300,000 for wastewater treatment improvements in 
     Pulaski County ($5,000,000) and Kingdom City ($1,300.000), 
     Missouri.
       34. $8,000,000 for the Upper Savannah Council of 
     Governments for wastewater facility improvements for the 
     Savannah Valley regional sewer project in Abbeville, 
     McCormick, and Edgefield Counties, South Carolina.
       35. $$3,300,000 for water system improvements in Jackson 
     County ($800,000), Washington County ($2,000,000), and 
     Cleburne County ($500,000), Alabama.
       36. $1,800,000 for water treatment improvements in the 
     Joshua Basin Water District.
       37. $100,000 for wastewater infrastructure improvements in 
     Ascension Parish, Louisiana.
       38. $50,000 for water and sewer improvements in the City of 
     Kinloch, Missouri.
       39. $3,000,000 for alternative source projects in the St. 
     Johns River, South Florida, and Southwest Florida Water 
     Management Districts.
       The conferees recognize the acute need for additional water 
     treatment capacity in San Diego County, California. While 
     limited funds prevent the conferees from providing fiscal 
     year 1998 funds for the development of the Olivenhain Water 
     Treatment Project, the conferees recognize the project's 
     potential to demonstrate the environmental and health 
     benefits associated with microfiltration technology. Also, 
     with regard to San Diego's South Bay Water Reclamation 
     Facility, the conferees are aware of the City's application 
     for grant assistance through the United States-Mexico border 
     projects program and that EPA and the NADBank have not 
     rendered final judgment on the application. The conferees 
     urge the Agency and the NADBank to review carefully this 
     matter so as to provide any appropriate support. Should the 
     application of the City be declined, the Agency is to provide 
     a report to the Committees on Appropriations within 30 days 
     of such action which explains in detail the decision of the 
     Agencies.
       Finally, the conferees note their support for construction 
     of the Jonathan Rogers plant in El Paso, Texas and encourage 
     the Agency to provide an appropriate amount from the border 
     infrastructure fund to support the federal share of this 
     project.

                   EXECUTIVE OFFICE OF THE PRESIDENT

  Council on Environmental Quality and Office of Environmental Quality

       Appropriates $2,500,000 for the Council on Environmental 
     Quality and Office of Environmental Quality instead of 
     $2,506,000 as proposed by the House and $2,436,000 as 
     proposed by the Senate.
       The conferees have agreed to bill language proposed by the 
     House which stipulates that, notwithstanding the provisions 
     of the National Environmental Policy Act (NEPA), there will 
     for fiscal year 1998 be just one member of the Council on 
     Environmental Quality (instead of three), and that individual 
     shall act as chairman.
       The conferees have also agreed to language proposed by the 
     Senate which prohibits CEQ from using funds other than those 
     appropriated directly to CEQ under this heading. This 
     language is intended to prevent CEQ from augmenting its staff 
     through the use of employees detailed from other federal 
     agencies. It is not intended to prevent CEQ from conducting 
     activities authorized under NEPA, including the coordination 
     of activities of federal agencies relative to environmental 
     policy issues. Further, the language is not intended to bar 
     the formation of interagency task forces or prevent requests 
     for information from other federal agencies.

[[Page H8356]]

                          unanticipated needs

       Appropriates $1,000,000 for unanticipated needs within the 
     Executive Office of the President. The conferees note that 
     this funding was included in this legislation at the request 
     of the Administration because it was excluded from another 
     appropriation measure. The conferees do not anticipate 
     funding this program in this Act in subsequent fiscal years.

                 FEDERAL DEPOSIT INSURANCE CORPORATION

                      Office of Inspector General

       Appropriates $34,365,000 for the Office of Inspector 
     General as proposed by the House instead of $34,265,000 as 
     proposed by the Senate. Funds for this account are derived 
     from the Bank Insurance Fund, the Savings and Loan 
     Association Insurance Fund, and the FSLIC Resolution Fund, 
     and are therefore not reflected in either the budget 
     authority or budget outlay totals.

                  FEDERAL EMERGENCY MANAGEMENT AGENCY


                            disaster relief

       Appropriates $320,000,000 for disaster relief as proposed 
     by the Senate instead of $500,000,000 as proposed by the 
     House.
       The conferees are supportive of FEMA's initiative to 
     establish a Federal Coordinating Officer cadre staffed by 
     full-time employees and funded by the Disaster Relief Fund to 
     support ongoing field operations. The Agency is expected to 
     keep the Committees on Appropriations informed of its 
     progress as it proceeds with its plans to enroll the 25 
     member cadre. If the Agency moves forward on this initiative, 
     the fiscal year 1998 operating plan should reflect this 
     activity.
       While the conferees have not included language proposed by 
     the Senate prohibiting the use of disaster relief funds in 
     certain instances, the conferees support efforts to rein in 
     disaster relief expenditures, which have grown exorbitantly 
     in recent years. The conferees acknowledge that under current 
     law, disaster relief payments have been made for such lower 
     priority activities as refurbishing golf courses in certain 
     high income communities. To offset the cost of growing 
     disaster relief requirements, a series of supplemental 
     appropriations bills in the past few years have included 
     large rescissions of funds from other agencies' programs, 
     principally low income housing. Earlier this year, FEMA 
     proposed amendments to the Stafford Act which represent a 
     modest first step in curbing disaster relief expenditures. 
     The conferees strongly urge the communities of jurisdiction 
     to take swift action to consider the proposed Stafford Act 
     amendments, including holding hearings at the earliest 
     possible time.


              emergency management planning and assistance

       Appropriates $243,546,000 for emergency management planning 
     and assistance instead of $261,646,000 as proposed by the 
     House and $207,146,000 as proposed by the Senate. Bill 
     language is included which provides $30,000,000 for pre-
     disaster mitigation activities instead of $50,000,000 as 
     proposed by the House and $5,000,000 as proposed by the 
     Senate for pre-disaster mitigation grants to state and local 
     governments.
       The conferees have provided the following increases to the 
     budget request:
       $500,000 for the completion of a comprehensive analysis and 
     plan of all evacuation alternatives for the New Orleans 
     metropolitan area.
       $5,000,000 for FEMA to continue the replacement and upgrade 
     of emergency equipment and vehicles. The conferees expect to 
     be informed in the operating plan as to how these funds are 
     expected to be spent.
       $3,000,000 for State and local assistance through 
     comprehensive cooperative agreements.
       $2,900,000 for the Dam Safety program, including $1,000,000 
     for research in dam safety; $1,000,000 for incentive grants 
     to States to upgrade their dam safety program; $500,000 for 
     training programs for State dam safety inspectors; and 
     $400,000 for administration of the program.
       The conferees have included bill language providing for a 
     grant of $1,500,000 to resolve issues under the Uniform 
     Relocation Assistance and Real Property Acquisition Policies 
     Act of 1970, Public Law 91-646, involving the City of 
     Jackson, Mississippi. These issues were identified in a 
     January 30, 1989 report of the United States Department of 
     Housing and Urban Development.
       Acknowledging the importance of pre-disaster mitigation in 
     reducing the loss of human life, the costs and disruption 
     caused by severe property damage, and the ever-growing cost 
     to all taxpayers of government-backed disaster relief 
     efforts, the conferees have provided $30,000,000 for program 
     planning and implementation of pre-disaster mitigation 
     efforts. The conferees acknowledge the potential value of 
     various alternatives that have been suggested to achieve pre-
     disaster mitigation, including grants to state and local 
     governments to conduct pilot demonstration projects as 
     proposed by the Agency in their fiscal year 1998 budget 
     submission, the HomeSaver Project proposed by The Partnership 
     for Natural Disaster Reduction, the rapid deployment-
     technologies concept proposed by the Centers for Protection 
     Against Natural Disasters (CPAND), and other research and 
     applied engineering activities, particularly those jointly 
     funded by the public and private sectors.
       The conferees agree that up to $5,000,000 of the amount 
     provided for pre-disaster mitigation is available immediately 
     to fund up to seven pilot projects approved by the Director 
     of FEMA. Prior to the expenditure of the remaining funds for 
     any specific pre-disaster mitigation program or project, the 
     conferees direct that the appropriate level of funding be 
     used by the Agency to conduct a formal needs-based analysis 
     and cost/benefit study of all of the various mitigation 
     alternatives. The results of these analyses and studies, 
     along with any relevant information learned from the 
     aforementioned seven pilot projects, shall be incorporated 
     into a comprehensive, long-term National Pre-disaster 
     Mitigation Plan. The plan should be developed, independently 
     peer-reviewed, and submitted to the Committees on 
     Appropriations not later than March 31, 1998. FEMA is 
     directed to involve in this planning effort participants 
     which shall include, but are not limited to, representatives 
     of FEMA and other federal agencies, state and local 
     governments, industry, universities, professional societies, 
     the National Academy of Sciences, The Partnership for Natural 
     Disaster Reduction, and CPAND. The conferees intend that none 
     of the remaining funds provided herein be obligated until the 
     plan has been completed and submitted as outlined above. The 
     conferees note that this approach is intended to be the 
     foundation for providing the best and most cost-effective 
     solution to reduce the tremendous human and financial costs 
     associated with natural disasters.
       The conferees believe that attention is warranted to 
     minimize losses to existing steel frame structures during and 
     following major earthquakes. Although many steel frame 
     structures were designed and constructed in accordance with 
     building codes in effect at the time of construction, 
     experience in the 1994 Northridge, California earthquake and 
     the 1995 Kobe, Japan earthquake suggests a heightened 
     vulnerability of these structures. Accordingly, the conferees 
     urge FEMA to consider a pilot pre-disaster mitigation project 
     that would incorporate the greater use of new steel frame 
     manufacturing and retrofitting technologies as a method to 
     reduce disaster response costs.
       The conferees are aware of proposals by the International 
     Hurricane Center at Florida International University to apply 
     advanced high-accuracy satellite laser altimeter surveying 
     techniques to coastal and flood plain modeling and post 
     natural disaster damage assessments. FEMA is urged to 
     consider funding such proposals from discretionary funds to 
     improve its modeling, mapping, damage assessment, and pre-
     disaster mitigation efforts.
       The conferees understand that many scientists studying 
     climate change have predicted a large-scale El Nino 
     phenomenon this year. Many such experts who have monitored 
     this phenomenon for decades project that this El Nino may 
     cause extreme weather events far worse than others associated 
     with El Nino events of past years. While it is impossible to 
     prevent these extreme weather events, the conferees recognize 
     that recently developed El Nino prediction capabilities can 
     be utilized to mitigate loss of life, human dislocation, and 
     property damages which may occur. The conferees encourage 
     FEMA to work with other federal agencies, including NOAA, 
     NASA, USDA, the Army Corps of Engineers, and the Department 
     of the Interior to utilize El Nino prediction data for 
     disaster planning and mitigation during fiscal year 1998 and 
     explore opportunities to expand the use of this new 
     predictive capability for long-term mitigation planning.
       The conferees note that Pointe Coupee Parish, Louisiana 
     faces the potential threat of multiple disasters, which 
     include the fixed site storage and transportation of volatile 
     chemicals, a nuclear power generating facility, and such 
     weather related threats as hurricanes, floods, and tornadoes. 
     Disaster mitigation and response requires rapid response by 
     civil agencies, but this is not possible without a 
     communications system with the capability to coordinate 
     immediately the activities of all disaster response teams. 
     The conferees urge FEMA to work closely with the Parish and 
     provide appropriate support for the installation and testing 
     of a prototype communications system. Disaster response 
     officials from Pointe Coupee Parish are expected to work 
     closely with FEMA to make available the results of the 
     demonstration project to other local governments and law 
     enforcement agencies.


                     NATIONAL FLOOD INSURANCE FUND

       Bill language which extends the borrowing authority for the 
     flood insurance program of $1,500,000,000 for fiscal year 
     1998 as proposed by the House has been included.
       The conferees have also included new bill language which 
     authorizes the National Flood Insurance Program for fiscal 
     year 1998. Without this authorization, new flood insurance 
     policies could not be written throughout the fiscal year.
       Finally, language which permits the continuation of flood 
     mapping activities of FEMA has been included.

             National Aeronautics and Space Administration

       The conferees note that the United States space launch 
     industry has identified underutilized infrastructure at the 
     Stennis Space Center for potential use in launch vehicle 
     development activities. The conferees consider such proposed 
     use of this infrastructure to be compatible with the Center's 
     propulsion test programs and consistent with other efforts to 
     optimize taxpayer investments while fostering U.S. 
     competitiveness and commercial use of space. The conferees 
     urge NASA to

[[Page H8357]]

     pursue an appropriate method for making the underutilized 
     Stennis infrastructure available under suitable terms and 
     conditions, if so requested by industry, and to notify the 
     Committees on Appropriations of the House and Senate if 
     existing NASA authority is insufficient for this purpose.


                           HUMAN SPACE FLIGHT

       Appropriates $5,506,500,000 for human space flight instead 
     of $5,426,500,000 as proposed by the House and $5,326,500,000 
     as proposed by the Senate. Within this amount, the 
     appropriation for space shuttle is $2,927,800,000, the 
     appropriation for payload and utilization is $227,400,000, 
     and the appropriation for space station and related 
     activities is $2,351,300,000.
       The conferees agree that the agency may provide $1,000,000 
     for the Neutral Buoyancy Simulator program, as was provided 
     in the Senate bill. In addition, before providing funding for 
     the program, the conferees request that NASA report on the 
     potential viability of commercialization of the Neutral 
     Buoyancy Simulator.
       The conferees have agreed to an appropriation of 
     $2,351,300,000 for Space Station activities in fiscal year 
     1998, including $80,000,000 from funds in the mission support 
     account identified by the agency ($25,000,000 from TDRS, 
     $20,000,000 from environmental programs, $30,000,000 from 
     Research Operations Support, and $5,000,000 from facilities), 
     $100,000,000 in addition to the agency's request, and 
     $50,000,000 by reallocation from within the amounts requested 
     in the Human Space Flight account.
       Of the amount provided for space station activities, no 
     more than $1,500,000,000 shall be available before March 31, 
     1998, as stated in the bill.
       The conferees are troubled by the problems with the space 
     station which include projected development cost overruns of 
     $600,000,000-$800,000,000, the inability to hold critical 
     hardware delivery and launch dates despite receiving the post 
     re-design funding profile requested by the Administration, 
     and failure to reduce the contractor team's development 
     workforce in keeping with budget projections submitted with 
     the 1997 and 1998 budgets.
       Therefore, the conferees have agreed to provide only part 
     of the funding and none of the transfer authority that NASA 
     has identified as necessary for the program in fiscal year 
     1998, $230,000,000 above the Administration's budget request, 
     rather than $430,000,000. In addition, the conferees have 
     withheld about a third of the total space station funds, 
     pending receipt of certain documents and information listed 
     below. This gives NASA and the space station contractor the 
     opportunity to reexamine the funding profile, schedule, 
     content, and efficiency of the program.
       The remaining $851,300,000 will be made available after 
     March 31, 1998, if the Committees on Appropriations receive 
     the Administration's fiscal year 1999 budget for NASA, 
     including the annual run-out budget for the Station program 
     through assembly complete, and also outyear projections for 
     other NASA enterprises that retains funding levels for fiscal 
     year 1999-2002 at levels no less than those assumed in the 
     fiscal year 1998 budget. The conferees expect the outyear 
     projections to reflect a balance among NASA's programs.
       In addition to the requirement about the fiscal year 1999 
     NASA budget and bill language limiting the use of a portion 
     of space station funds until March 31, 1998, the remaining 
     $851,300,000 remains fenced until and unless NASA provides 
     the following items to the Committees on Appropriations of 
     the House and Senate, and the Committees subsequently approve 
     the release of these funds:
       1. A detailed plan, agreed jointly to by NASA and the prime 
     contractor, for the contractor's monthly staffing levels 
     through completion of development, and evidence that the 
     contractor has held to the agreed-upon destaffing plan 
     through the first four months of fiscal year 1998;
       2. A detailed schedule, agreed jointly to by NASA and the 
     prime contractor, for delivery of hardware, and NASA's plans 
     for launching the hardware;
       3. A detailed report on the status of negotiations between 
     NASA and the prime contractor for changes to the contract for 
     sustaining engineering and spares, with the expectation that 
     NASA adhere to the self-imposed annual cap of $1,300,000,000 
     for operations after construction is complete; and
       4. A detailed analysis by a qualified independent third 
     party of the cost and schedule projections required in 1), 
     2), and 3) above, either verifying NASA's data or explaining 
     reasons for lack of verification.
       Given how severe the program's budget problems are, the 
     conferees are also mindful that future NASA budgets must be 
     funded within discretionary spending caps in the five-year 
     balanced budget agreement, meaning that budget outlays in 
     fiscal year 1999 for all discretionary spending will grow by 
     just one percent. As a result, the conferees are concerned 
     that future NASA budgets not force reductions in the current 
     outyear projections for space science, earth science, 
     aeronautics, and advanced space transportation because of the 
     need to accommodate overruns in the space station budget.


                   SCIENCE AERONAUTICS AND TECHNOLOGY

       Appropriates $5,690,000,000 for science, aeronautics and 
     technology as proposed by the House instead of $5,642,000,000 
     as proposed by the Senate.
       The conference agreement reflects the following changes 
     from the budget request:
       1. A general reduction of $66,000,000.
       2. An increase of $1,000,000 for Multiple Sclerosis cooling 
     therapy research.
       3. An increase of $5,500,000 for the space radiation health 
     program.
       4. An increase of $1,000,000 for eye tracking technology 
     miniaturization.
       5. An increase of $10,000,000 for additional optical 
     astronomy test beds as proposed in the Senate report (105-
     53). This amount represents the total NASA contribution to 
     the capital costs for these efforts and operating costs are 
     to be covered by the host activity.
       6. An increase of $1,000,000 for the United States/Mexico 
     Foundation for Science.
       7. An increase of $5,000,000 for the lightning mapper 
     sensor.
       8. An increase of $450,000 for use of satellite imagery in 
     urban planning and agricultural applications.
       9. An increase of $15,000,000 for funding up to five 
     consortia to develop regional application with the use of EOS 
     data.
       10. An increase of $5,800,000 for Commercial Technology 
     Programs.
       11. An increase of $6,000,000 for telecommunications 
     technology infrastructure for K-12 schools.
       12. An increase of $1,900,000 for the National Technology 
     Transfer Center.
       13. An increase of $1,750,000 for the Midwest Regional 
     Technology Transfer Center.
       14. An increase of $5,000,000 for a NASA business incubator 
     program which is designed to foster partnerships between 
     educational institutions and small high-technology 
     businesses. The program is to be a nation-wide competitive 
     program with successful applicants demonstrating at least 50 
     percent of total funds will be derived from non-federal 
     sources.
       15. An increase of $1,500,000 to restructure the Software 
     Optimization and Reuse Technology program. The conferees are 
     concerned that this program has not delivered expected 
     results; the conferees expect NASA to restructure its current 
     funding mechanism to allow for greater oversight and improved 
     results. The conferees expect this funding to be expended 
     over a two year period.
       16. The conferees agree to provide an additional 
     $20,000,000 only for post-cycle I activity on the Low Cost 
     Booster Technology Demonstration. NASA is to proceed with 
     cycle I awards, but no funds may be used for market analysis 
     or development of business plans. In addition, the conferees 
     agree that prior to any contract awards beyond cycle I, NASA, 
     with the Marshall Space Flight Center as the lead center, is 
     to convene a conference of all interested parties to 
     determine the best program structure to achieve the goal of a 
     space launch platform for a 150 kg payload to attain a 200 
     nautical mile, sun-synchronous orbit, in the range of less 
     than $2,000,000 in recurring cost. Furthermore, the conferees 
     agree that said conference shall conclude prior to the end of 
     cycle I and that recommended changes to the program that 
     materialize shall be presented to Congress prior to 
     implementation by NASA.
       17. An increase of $1,500,000 for MSE-Technology 
     Applications, Western Environmental Technology Office.
       18. An increase of $1,000,000 for a joint program with the 
     Department of Defense.
       19. An increase of $3,300,000 for replication of the SEMAA 
     program.
       20. An increase of $2,500,000 for a science learning center 
     in Kenai, Alaska.
       21. An increase of $1,000,000 for the Discover Science 
     Center, Santa Ana, California.
       22. An increase of $9,000,000 for expansion of the 
     Partnership Awards program.
       23. An increase of $2,000,000 for Daily Living Science 
     Center in Kenner, Louisiana.
       24. An increase of $5,800,000 for the Space Grant College 
     and Fellowship program.
       25. An increase of $1,500,000 for the Pennsylvania 
     Educational Telecommunications Exchange Network.
       26. An increase of $1,500,000 for academic and 
     infrastructure needs at the Apple Valley, California science 
     and technology center.
       27. An increase of $3,000,000 for Solar-B.
       28. An increase of $3,000,000 for solar stereo.
       The conferees also agree that NASA should continue with its 
     efforts to purchase Earth science data from private industry 
     to the extent it is appropriate.
       The conferees concur with the intent of the language in 
     Senate report 105-53 with regard to the Earth Observing 
     System Data Information System (EOSDIS). The conferees wish 
     to make clear, however, that NASA should make any evaluation 
     of the future of the ECS based not only upon delivery, but 
     also successful performance demonstrated in the initial post-
     launch operational capabilities of EOSDIS as it relates to 
     both the AM-1 and Landsat-7 spacecraft. Further, the 
     conferees believe that NASA should proceed carefully with the 
     federation of mission to planet earth, but ensure the earth 
     science community should not in any way be prevented from 
     participating in this endeavor. Therefore, issuance of any 
     conflict of interest guidelines should be construed narrowly 
     to apply only to immediate ESSAC members, and pertain simply 
     to future eligibility for any cooperative agreement notices 
     related exclusively to federated management funding, which is 
     to be capped in fiscal year 1998 at $10,000,000.
       The conferees concur with the direction of the Senate to 
     promote competition in the award of advanced technology 
     development (ATD) funds. To achieve this end, commencing with 
     fiscal year 1998 and continuing in each year thereafter, NASA 
     should consolidate all space science ATD activities into an

[[Page H8358]]

     easily accessible consolidated budget line item and award not 
     less than 75 percent of these funds through broadly 
     distributed announcements of opportunity that solicit 
     proposals from all categories of organizations, including 
     educational institutions, industry, nonprofit institutions, 
     NASA Centers, the Jet Propulsion Laboratory, and other 
     Government agencies, and that allow partnerships among any 
     combination of these entities, with evaluation, 
     prioritization, and recommendations made by external peer 
     review panels, consistent with the recommendations contained 
     in the 1995 National Academy of Sciences report on managing 
     the space sciences. In awarding ATD funds in this manner, the 
     conferees wish to make clear that final selection of all 
     proposals rests with NASA officials consistent with Office of 
     Procurement Policy guidelines; and that setting technology 
     requirements that are the foundation of the AO's rests with 
     NASA program managers, consistent with guidance provided by 
     advisory bodies of the at-large science community. In this 
     fashion, NASA's technology investments will be managed in a 
     manner parallel to that traditionally employed in 
     implementing the agency's science program.


                            mission support

       Appropriates $2,433,200,000 for mission support instead of 
     $2,513,200,000 as proposed by the House and $2,503,200,000 as 
     proposed by the Senate. The conference agreement includes 
     transfer of $80,000,000 from this appropriation to the Human 
     Space Flight appropriation for the space station effort. The 
     specific reductions to this appropriation are delineated in 
     an earlier section of this statement. In addition, the 
     conferees agree that $5,000,000 is to be provided for 
     facilities enhancements at the Stennis Space Center.
       The conferees concur with the direction of the Senate with 
     respect to the NASA Wallops flight facility. The conferees 
     wish to make clear that none of the funds appropriated or 
     otherwise made available to the National Aeronautics and 
     Space Administration by this Act, or any other Act enacted 
     before the date of enactment of this Act, may be used by the 
     Administrator of the National Aeronautics and Space 
     Administration to relocate aircraft of the National 
     Aeronautics and Space Administration based east of the 
     Mississippi River to the Dryden Flight Research Center in 
     California.


                       administrative provisions

       The conferees have included an administrative provision as 
     proposed by the Senate which directs NASA to use $400,000 for 
     a study by the National Research Council which evaluates the 
     engineering challenges posed by extravehicular activity 
     requirements of space station construction/assembly.
       The conferees have not included the administrative 
     provision proposed by the House and stricken by the Senate 
     which would have provided $150,000,000 of transfer authority.

                  National Credit Union Administration


                       central liquidity facility

       Appropriates $1,000,000 for the National Credit Union 
     Administration for the Community Development Revolving Loan 
     Program for credit unions as authorized by Public Law 103-
     325.

                      National Science Foundation


                    research and related activities

       Appropriates $2,545,700,000 for research and related 
     activities, instead of $2,537,526,000 as proposed by the 
     House and $2,524,700,000 as proposed by the Senate.
       The conferees are in receipt of the Foundation's 
     explanation of the programmatic areas of Knowledge and 
     Distributed Intelligence in the Information Age and Life and 
     Earth's Environment. The Foundation has not yet provided 
     appropriate milestones and guideposts, to be accomplished in 
     fiscal year 1998, and against which the agency can be 
     measured in determining funding for fiscal year 1999. The 
     conferees expect to receive such milestones and guideposts 
     before the Foundation obligates any further funding for these 
     programmatic areas.
       Throug a cooperative agreement, the National Science 
     Foundation has authorized the collection of fees for the 
     registration of internet domain names. Under the terms of 
     that agreement, a fund for the intellectual infrastructure of 
     the internet has been established. For purposes of justifying 
     the Foundation's requests for appropriations, the Foundation 
     has included networking activities, such as the domain name 
     registration activity, within its research facilities 
     portfolio. The conferees concur that these activities should 
     be considered research facilities.
       Accordingly, the conferees direct the Foundation to credit 
     up to $23,000,000 of the funds collected in the 
     ``intellectual infrastructure'' fund to the Foundation's 
     Research and Related Activities account for Next Generation 
     Internet activities, pursuant to the authority to credit 
     ``receipts for scientific support services and material 
     furnished by National Science Foundation supported research 
     facilities.''
       The conferees are in agreement with the report of the 
     Senate regarding participation by EPSCoR states in 
     development of the Next Generation Internet. The conferees 
     expect to receive the report by March 31, 1998.
       At its March 1997 meeting, the National Science Board 
     evaluated proposals for Partnerships with Advanced 
     Computational Infrastructure (PACI). At that meeting, two 
     partnership proposals from two existing supercomputing 
     centers were not selected. The Board provided for the phase-
     out over a period of up to two years of the two centers not 
     selected. This phase-out was designed to recognize the 
     substantial investment made by the United States in these two 
     centers and to keep their resources available to the user 
     community during a period of transition to the new 
     partnership structure.
       The conferees are concerned that funding for the orderly 
     phase-out of the two existing supercomputing centers, and the 
     seamless transition of the user community to the new PACI 
     program, be fully and fairly achieved in an expeditious and 
     truly cooperative manner. Rather than providing additional 
     funds for that purpose at this time, the conferees direct the 
     Foundation to provide a report to the Committees on 
     Appropriations of the House and Senate which details both the 
     progress of the PACI program to date, and its further plans 
     for the orderly phase-out and seamless transition of the 
     Foundation's supercomputing program. This report should be 
     submitted with the fiscal year 1999 budget and should focus 
     particularly on how ``high-end'' users of the IBM SP 
     supercomputing system will be fully serviced by the new 
     partnerships, or, if necessary, by the new partnerships in 
     close collaboration with the centers being phased-down.
       The conferees have agreed to provide $40,000,000 in 
     addition to the budget request for a competitive, peer-
     reviewed plant genome research program. The conferees are in 
     agreement that the program established by the National 
     Science Foundation should be accomplished after consultation 
     with the National Science and Technology Council's 
     Interagency Working Group on plant genome research.
       The conferees have also agreed to provide $1,000,000 for 
     the United States/Mexico Foundation for Science as proposed 
     by the House.
       Finally, the conferees encourage the National Science 
     Foundation to study how it would establish and operate a 
     National Institute for the Environment.


                        major research equipment

       Appropriates $109,000,000 for major research equipment 
     instead of $175,000,000 as proposed by the House and 
     $85,000,000 as proposed by the Senate.
       The conferees agree to provide $4,000,000 for technical 
     enhancements to the Gemini telescope project and $70,000,000 
     for upgrades to Antarctic facilities. The amount provided for 
     Antarctic facilities includes $35,000,000 to be made 
     available immediately and the remaining $35,000,000 to be 
     available on September 30, 1998. The conferees have not 
     provided the budget request of $25,000,000 for the Polar Cap 
     Observatory. The conferees direct the National Science 
     Foundation to provide the Committees on Appropriations of the 
     House and Senate an analysis of alternative sites for 
     location of the observatory and a report on the scientific 
     justification for the project.

                     Education and Human Resources

       Appropriates $632,500,000 for education and human 
     resources, as proposed by the House instead of $625,500,000 
     as proposed by the Senate.
       The conferees agree to provide $2,000,000 for Advanced 
     Technology Education and $5,000,000 for an initiative to 
     improve the production of science and engineering doctorates 
     drawn from under-represented groups as proposed in the House 
     report. In addition, the conferees agree that the Foundation 
     should provide $6,000,000 for an undergraduate reform 
     initiative to increase the numbers of under-represented 
     populations in mathematics, engineering and the sciences as 
     proposed in the Senate report.


                         salaries and expenses

       Appropriates $136,950,000 for salaries and expenses, the 
     same as provided by the House and the Senate. The conferees 
     agree with the direction contained in the Senate report with 
     regard to reporting total cost of administration and 
     management.

                 Neighborhood Reinvestment Corporation


                      payment to the neighborhood

                        reinvestment corporation

       Appropriates $60,000,000 for the Neighborhood Reinvestment 
     Corporation instead of $70,000,000 as proposed by the House 
     and $50,000,000 as proposed by the Senate. As this is a 20 
     percent increase over the fiscal year 1997 funding level, the 
     conferees request the Corporation to notify the Committees on 
     Appropriations as to how this additional funding will be 
     specifically utilized throughout the fiscal year.

                      TITLE IV--GENERAL PROVISIONS

       Language as proposed by the Senate which will allow funds 
     made available under section 320(g) of the Federal Water 
     Pollution Act to be used for implementing comprehensive 
     conservation and management plans is included as section 420.
       Bill language regarding the Office of Consumer Affairs is 
     included as section 421 as proposed by the Senate instead of 
     as section 420 as proposed by the House.
       Inserts language proposed by the Senate defining 
     ``qualified student loan'' with respect to national service 
     awards, modified to make the provision apply only to Alaska.
       Deletes language proposed by the Senate expressing a sense 
     of the Senate regarding funding of veterans discretionary 
     programs in future years. The conferees are concerned with 
     the budget projections for veterans medical spending assumed 
     in the 1997 Balanced Budget Act. Veterans medical spending 
     should be afforded the highest priority in the budget process 
     in coming fiscal years to

[[Page H8359]]

     ensure that high quality medical care is accessible and 
     available to all eligible veterans. The conferees note that 
     the highest priority was afforded to veterans medical 
     spending in the conference agreement on this legislation, 
     which makes available approximately $300,000,000 above the 
     amount assumed in the budget agreement.
       Deletes language proposed by the House which prohibits the 
     expenditure of funds to implement regulations regarding the 
     importation of PCBs and PCB items.
       Deletes language proposed by the House which prohibits the 
     expenditure of funds for grants or contracts to institutions 
     of higher education which restrict ROTC activities.
       Deletes without prejudice language proposed by the Senate 
     requiring Senate hearings relating to compensation benefits 
     for radiation exposure. The Senate conferees support the 
     Senate provision regarding Senate hearings and a CBO cost 
     study concerning the atomic veterans issue. The conferees are 
     concerned that veterans who were exposed to ionizing 
     radiation while serving on active duty may have contracted 
     various diseases which currently are not on the presumptive 
     list of disabilities for radiogenic diseases, and urge the 
     Secretary to review this matter.

          TITLE V--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                        portfolio reengineering

       Modifies S. 513, the ``Multifamily Assisted Housing Reform 
     and Affordability Act of 1997,'' which was incorporated, by 
     reference, by the Senate. The House-passed measure did not 
     include a similar provision. The policies contained in this 
     provision ensure the continued economic and physical vitality 
     of the properties restructured under this title, protect the 
     FHA insurance fund from excessive defaults, reduce the cost 
     of rent subsidies paid to support insured projects, and guard 
     against possible displacement of families who live in these 
     buildings.
       Title V of the Act is divided into four subtitles. Subtitle 
     A establishes a ``mark-to-market'' program to reduce the 
     costs of over-subsidized section 8 multifamily housing 
     properties insured by the Federal Housing Administration 
     (FHA). Subtitle B includes several miscellaneous provisions 
     to reform and establish new authority for the Secretary to 
     recapture interest reduction payment subsidies from section 
     236 insured multifamily housing properties for purposes of 
     providing rehabilitation grants to properties suffering from 
     deferred maintenance. Subtitle C of the bill contains a 
     number of provisions to minimize the incidence of fraud and 
     abuse with regard to Federally assisted housing programs. 
     Subtitle D creates the Office of Multifamily Housings 
     Assistance restructuring.
       Under the ``mark-to-market'' program, FHA-insured section 8 
     housing properties with above market rents are eligible for 
     debt restructuring to reduce rent levels to those of 
     comparable market rate properties or to the minimum level 
     necessary to support proper operations and maintenance. In 
     response to limitations with the Department's capacity, the 
     legislation shifts the administration and management of this 
     portfolio from the Department to capable entities charged 
     with protecting the affordable housing stock in a fiscally 
     responsible manner. Additionally, the legislation terminates 
     the government's relationship with owners who fail to comply 
     with Federal requirements and ends the practice of 
     subsidizing properties that are not economically viable.


            selecting participating administrative entities

       This legislation utilizes capable public entities, 
     nonprofits, and for-profit entities to act as participating 
     administrative entities (PAEs) on behalf of the Federal 
     government. Priority consideration is provided to public 
     agencies, namely State and local housing finance agencies. 
     The Secretary is required to provide interested public 
     agencies with an exclusive time period to determine if the 
     entities are qualified to act as PAEs. During this time 
     period, the Secretary is required to evaluate the public 
     agencies' qualifications, based on clearly established 
     criteria, and to notify the applicants regarding the status 
     of their proposals. The Secretary is required to select a 
     public agency if it meets the selection criteria. If the 
     proposal is rejected, the Secretary is required to provide a 
     written explanation and an opportunity for the applicant to 
     respond. Even in situations where a public agency is rejected 
     under the exclusive time period, the public agency is allowed 
     to reapply when other non-public entities are allowed to 
     apply for the program. The conferees expect the Secretary to 
     utilize qualified housing finance agencies (HFAs) to the 
     greatest extent possible because of the HFAs' experience and 
     expertise in affordable housing and their ability to ensure 
     that the affordable housing stock is protected in a fiscally 
     responsible manner.
       The conferees stress that the criteria established in the 
     bill relate to a wide range of factors that are intended to 
     assure that the PAE is capable of protecting the interests of 
     residents, properties, and communities. Similarly, the 
     conferees recognize that the participating administrative 
     entities will be carrying out complex duties. In many cases, 
     PAEs will be asked to determine, subject to guidelines 
     established by the Secretary, appropriate rent levels for the 
     project which will determine the section 8 subsidy cost and 
     the amount of debt that will be refinanced into a second 
     mortgage. As a result, they have the first responsibility for 
     determining the appropriate subsidy costs borne by Federal 
     taxpayers and the appropriate level of risk of nonpayment 
     that Federal taxpayers shall bear.
       The conferees intend that any costs of any fees paid to the 
     participating administrative entities, under the portfolio 
     restructuring agreement are mandatory expenses of the 
     appropriate FHA fund.
       Section 513(b) sets forth the process and criteria for 
     selecting participating administrative entities. The 
     conferees intend that these criteria and processes will 
     result in the selection of participating administrative 
     entities that are fully and unquestionably qualified to carry 
     out these responsibilities on behalf of the American 
     taxpayer. They should have the necessary expertise and 
     capacity and the ability to ascertain the public interest 
     both in reducing cost and risk and in maintaining the public 
     purpose for which Federal support of this housing is 
     provided.
       In situations where an HFA or local housing agency is not 
     selected at the PAE, the Secretary has the flexibility to 
     choose those qualified nonprofit organizations and other 
     entities that have affordable housing missions and experience 
     to serve as PAEs. If no qualified public or nonprofit 
     entities are selected, the Department is provided with 
     authority to act as the PAE in conjunction with other 
     entities. The conferees are concerned about the Department's 
     capacity and expects the Department or its contractors to 
     carry out the restructuring only where adequate capacity 
     exists. Under no circumstances shall a decision that directly 
     affects the residents and community be made without a public 
     purpose entity involved. Public purpose entities, including 
     the Department, will be involved in all critical functions 
     such as developing the rental assistance assessment plan, 
     screening owners and properties for mark-to-market and 
     monitoring the portfolio after restructuring.
       To facilitate optimal capacity for the restructuring 
     program, interested public and nonprofit entities are 
     encouraged to partner with various other entities. For 
     example, public purpose entities could partner with public 
     housing agencies, private financial institutions, mortgage 
     services, nonprofit and for-profit housing organizations, 
     Fannie Mae and Freddie Mac, the Federal Home Loan Banks, and 
     other State or local mortgage insurance companies or bank 
     lending consortia. Further, coordination or partnerships 
     between different State and local housing entities are 
     encouraged under this Act.
       The Act envisions that the Department will compensate 
     participating administrative entities and other third parties 
     to accomplish the purpose of the Act. Other mechanisms, such 
     as equity sharing partnerships, are expressly prohibited 
     beginning in fiscal year 1999. (The demonstration authority 
     continued during fiscal year 1998 permits structures such as 
     the nonprofit joint venture structure already in use by the 
     Department in fiscal year 1997.)
       Specifically, section 713(b)(6)(B) of the Act prohibits any 
     private entity from sharing, participating in, or otherwise 
     benefiting from any equity created, received, or restructured 
     as a result of the portfolio restructuring agreement. In 
     addition, section 517(d) of the Act prohibits the Secretary 
     from participating in any equity agreement or profit-sharing 
     agreement in conjunction with any eligible multifamily 
     housing project. These prohibitions were put in place because 
     of concerns that equity sharing arrangements might skew the 
     motivations of the participating administrative entities or 
     the Department in ways counter to the public interest.
       The conferees note, however, that one of the public 
     purposes of this Act is to reduce the cost to the taxpayers 
     of section 8 subsidies and losses to the FHA insurance fund. 
     Moreover, during the savings and loan crisis, the Resolution 
     Trust Corporation found that the use of equity sharing 
     partnerships between the public sector and the private sector 
     resulted in lower losses to the taxpayer while effectively 
     achieving other public goals.
       Likewise, the Department is using or is contemplating using 
     such structures in a way that is consistent with the public 
     interest. For example, under the FHA Mulifamily Housing 
     Demonstration Program, the Department entered into a joint 
     venture with a nonprofit organization selected through 
     competitive bidding to restructure selected mortgages with 
     assistance contracts that expired in fiscal year 1997. 
     Similarly, the Department in contemplating selling notes on 
     assisted projects to a partnership of state agencies and 
     private investors, motivated to provide maximum return to the 
     purchaser, and thus to the FHA fund, but with certain public 
     policy decisions reserved to the state agency.
       Therefore, the conferees direct the Department to report to 
     the Committees of jurisdiction, no later than February 15, 
     1998, on the possible ways equity sharing partnerships might 
     be incorporated into this framework as an optional 
     alternative structure in implementing the Act, if the 
     prohibitions in the Act were to be lifted. The report shall 
     discuss the advantages and disadvantages of those structures 
     in achieving public purposes. The report shall also consider 
     what tax impact, if any, such structures would have on the 
     owners of the projects.


       Functions of Participating Administrative Entities (PAEs)

       PAEs perform a variety of functions in order to reduce 
     project rents, address troubled projects and correct 
     management and

[[Page H8360]]

     ownership problems. PAEs are provided with 
     portfolio restructuring program responsibilities through a 
     working agreement with the Secretary called ``Portfolio 
     Restructuring Agreements.'' Under these agreements, PAEs 
     are authorized to take a number of actions to fulfill the 
     goals of this legislation. These actions include 
     restructuring the project's debt, screening out bad 
     projects and bad owners from the renewal and restructuring 
     process, creating partnerships with other housing and 
     financial entities and ensuring the project's long-term 
     compliance with housing quality and management performance 
     requirements.
       Before an eligible property is allowed to enter the renewal 
     and restructuring process, PAEs are required to carefully 
     evaluate the project owner's record in operating the property 
     and the property's physical condition. The Act specifies the 
     criteria which PAEs use to determine which properties qualify 
     for section 8 contract renewal and mortgage restructuring. 
     These criteria focus on ownership, management performance and 
     the economic viability of the properties. It is at this time 
     that the Federal government is provided with the opportunity 
     to cleanse the inventory of bad project owners and properties 
     which hurt residents and communities, and threaten the 
     financial interests of the American taxpayer. Owners or 
     purchasers who have been rejected from the restructuring 
     process have the right to dispute the basis for the rejection 
     and are provided with an opportunity to remedy the problem. 
     The Secretary or the PAE has the discretion to affirm, modify 
     or reverse any rejection.
       If the property owners are prohibited from restructuring, 
     the Department is provided with authority to deal with the 
     property in several ways, including to sell or transfer the 
     project to a qualified purchaser. Preferences are provided to 
     resident organizations and tenant-endorsed community-based 
     nonprofit and public agency entities. If sales or transfers 
     to qualified purchasers are accepted, the project becomes 
     eligible to be restructured. In addition to sales and 
     transfers, another option is partial or complete demolition 
     of the project if the project is in such poor condition that 
     rehabilitation is not cost-effective. The Department may 
     exercise its foreclosure and property disposition powers to 
     deal with troubled projects and owners. Under any of these 
     scenarios, residents are protected from displacement with 
     tenant-based assistance and reasonable moving expense funds.


                              rent levels

       Properties eligible for restructuring have rents set at a 
     reasonable level near or at market rates based on the rents 
     of other comparable properties in the market. In the event 
     comparable properties cannot be identified, the bill allows 
     rents to be 90 percent of the fair market rent (FMR). 
     Exception rents are allowed using the budget-based rent 
     calculation method when no comparable property exists or 
     where 90 percent of the FMR does not ensure the financial 
     viability of the properties. Budget-based exception rents are 
     capped at 120 percent of the FMR and only 20 percent of the 
     inventory's units can receive these rents.
       The conferees are sensitive to the reality that many of the 
     properties which may require budget-based exception rents are 
     concentrated in certain metropolitan or regional areas. In 
     particular, a large portion of the properties in the upper 
     Midwest are elderly facilities in rural areas, which are 
     particularly disadvantaged under the Department's fair market 
     rent system because these properties were built to a 
     different standard compared to general rental properties, and 
     the nature of the rental housing depresses the FMRs. To 
     address these types of problems, the Act provides the 
     Department with authority to waive the 20 percent limitation 
     in any jurisdiction which can demonstrate a special need. The 
     Secretary is also authorized to waive the 120 percent 
     exception rent cap on up to five percent of the restructured 
     units in a given year for unique situations. The conferees 
     urge the Secretary to exercise these options to ensure that 
     certain geographic areas are not adversely affected.
       Likewise, in determining comparable rents, the 
     participating administrative entity may take into account or 
     may not take into account, as appropriate, units which are 
     subject to rent control. The conferees are concerned that, if 
     rent controlled units are excluded from the determination in 
     every case, restructured rents could be too high in areas 
     generally subject to rent controls. In that instance, 
     taxpayers would pay more than necessary in section 8 
     subsidies.
       However, the conferees recognize that there will be 
     situations where rent controlled units may not be the most 
     useful determinants of market rents. For example, if in 
     determining comparable rents the participating administrative 
     entity finds a mix of controlled and uncontrolled buildings 
     similar to the subject property, there may be justification 
     to use only the uncontrolled properties as indicative of 
     market rents. In addition, a participating administrative 
     entity determining comparable rents in an area which contains 
     both controlled and uncontrolled properties may choose to use 
     uncontrolled properties as the source of comparability for a 
     project not subject to rent control and to use controlled 
     properties for a property subject to rent control. Finally, 
     the conferees believe that there may be instances in which 
     the participating administrative entity may need to look at 
     rents outside the jurisdiction to best determine comparable 
     rents. The conferees request the Department to provide 
     flexible program guidance on this matter to the participants.


                       type of rental assistance

       The conference agreement mandates the continuation of 
     project-based rental assistance for properties that 
     predominantly serve elderly or disabled households and 
     properties located in tight rental markets. The conferees 
     expect the Department to develop regulations, in 
     consultation with affected parties, that define what 
     constitutes a ``predominantly elderly'' or ``disabled'' 
     property and a ``tight'' rental market. In defining a 
     tight rental vacancy market, the conferees believe that a 
     six percent vacancy rate is reasonable. However, as stated 
     previously, the conferees expect some flexibility in the 
     regulations to account for local market variations. It is 
     most likely that metropolitan areas such as New York City, 
     Boston, Salt Lake City, and the San Francisco Bay area 
     will be considered to be tight rental markets by most real 
     estate experts and, therefore, covered under the mandatory 
     renewal provisions.
       For the remainder of the inventory, PAEs are permitted to 
     either continue project-based assistance or can convert some 
     or all assisted units in a property to tenant-based 
     assistance pursuant to the rental assistance assessment plan. 
     This decision is made only after the PAE consults with the 
     project owner, local government officials and affected 
     residents.
       The conferees note that the Act establishes eight factors 
     to be considered by the participating administrative entity 
     in determining whether a section 8 contract should continue 
     as project-based or be converted to tenant-based certificates 
     and vouchers. Each of these factors is relevant to such 
     determination. The Act, however, given no weight to one 
     factor over another and the conferees have no predetermined 
     expectation about how many projects will be converted.
       Instead, the importance of each factor is to be determined 
     in the context of each project. The conferees expect that the 
     participating administrative entity will not make a numerical 
     calculation of the number of factors weighing in favor of 
     tenant-basing and the number of factors weighing in favor of 
     project-basing, but instead will make a reasoned judgment 
     about how, in each case, to achieve an appropriate balance of 
     desired public policy goals as reflected by the factors. The 
     PAE may take up to five years to convert the assistance to 
     certificates and vouchers if the PAE decides the transition 
     period is necessary and if such a transition period is 
     necessary for the financial viability of the project.


                 mortgage restructuring and tax policy

       On September 15, 1997, the House Committee on Banking, 
     Subcommittee on Housing and Community Opportunity, held a 
     hearing on the tax consequences of FHA-insured mortgage 
     restructuring for project owners. The subcommittee heard 
     testimony speculating that the Treasury Department, most 
     likely, would review the restructuring transactions 
     envisioned in the Act based on the individual facts and 
     circumstances of each project. Consequently, definitive 
     answers could not be provided about whether this 
     restructuring proposal would result in tax consequences for 
     participating project owners.
       Moreover, the subcommittee heard testimony that, even if 
     there was definitive guidance from the Treasury Department 
     about the treatment of the restructuring transactions, some 
     project owners could incur accelerated tax liabilities as a 
     result of the restructuring and that, as a result, some 
     project owners may not participate in the restructuring 
     process. Finally, additional testimony suggested that 
     Congress has no choice but to balance the budgetary cost of 
     providing tax relief legislation with the budgetary savings 
     that the restructuring proposals represent and with the 
     program goal of maintaining the stock of low-income housing. 
     Therefore, the conferees urge the committees of jurisdiction, 
     early next year, to consider necessary legislation to ensure 
     that the housing policy represented by this Act is not 
     thwarted by owner concerns about tax liability.


                        property rehabilitation

       The conference agreement provides rehabilitation assistance 
     but limits the extent of rehabilitation to a non-luxury 
     standard to prevent abuse. To further safeguard against 
     excessive rehabilitation costs, a minimum 25 percent matching 
     requirement from the owner is included in the Act. The 
     purpose of this matching requirement is to encourage owners 
     to invest their own funds in their properties and to reduce 
     the risk to the Federal government. Rehabilitation assistance 
     is provided either through project reserves, grants funded 
     from acquired residual receipts, additional debt 
     restructurings taken as part of the mortgage restructuring 
     transaction, or from the rehabilitation grant program.


         office of multifamily housing assistance restructuring

       The Act establishes an Office of Multifamily Housing 
     Assistance Restructuring (OMHAR) within the Department, under 
     the direction of the Secretary, to implement the Act, to 
     oversee the multifamily housing restructuring process 
     performed by participating administrative entities and, when 
     necessary, to restructure the mortgage. The conferees intent 
     that OMHAR be staffed with

[[Page H8361]]

     expert employees and have access to private expertise to 
     accomplish the purposes of the Act.
       To do so, OMHAR must have or obtain expertise and skills in 
     real estate development, in management and finance, in 
     financial and market analysis, in auditing, evaluation and 
     oversight, and in accounting and taxation. The conferees 
     direct the Secretary to ensure that such expertise and skills 
     are available to OMHAR. The Act gives the Secretary the 
     flexibility to obtain competent personnel from other agencies 
     and to contract for expert services. However, the conferees 
     expect that these avenues, and the existing Departmental 
     staff, may not be sufficient to obtain the necessary 
     skills. Therefore, the conferees expect that the Secretary 
     may be required to hire new employees for OMHAR to perform 
     effectively.


                    special consultation procedures

       Section 522 of the Act requires the Department to develop 
     final regulations within twelve months from the date of 
     enactment. During that period, the Department is to collect 
     and respond to numerous public comments on several issues. 
     However, in order to focus special attention on two critical 
     issues, the conferees have included special requirements for 
     the Department to seek comment through three public fora at 
     which specified parties may make recommendations on:
       --the selection process for participating administrative 
     entities; and
       --the mandatory renewal of certain contracts with project-
     based assistance.
       Regarding the selection of participating administrative 
     entities, the conferees stated previously that entities fully 
     qualified shall be selected to undertake the complex task of 
     restructuring the debt and assistance for multifamily 
     projects. To this end, the selection criteria are intended to 
     assure competent and efficient participants. The conferees 
     urge the Department to use the fora to elicit a wide range of 
     concerns and recommendations from affected parties as to 
     implementing the selection process to accomplish this end.
       Section 522 also directs the Department to solicit views on 
     how to implement the requirements that section 8 assistance 
     be renewed as project-based assistance for tight markets 
     (section 515(c)(1)(A)) and when ``a predominant number'' of 
     the units are occupied by elderly and/or disabled families 
     (section 515(c)(1)(B)). The conferees believe it would be 
     helpful if interested parties address the extent to which a 
     project must be occupied by elderly and/or disabled persons 
     to qualify for mandatory renewal, particularly rural projects 
     which house elderly and disabled persons, in light of the 
     factors that must be assessed in the rental assistance 
     assessment plan.


                   conference total--with comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1998 recommended by the committee of conference, 
     with comparisons to the fiscal year 1997 amount, the 1998 
     budget estimates, and the House and Senate bills for 1998 
     follow:

New budget (obligational) authority, fiscal year 1997...$85,895,503,442
Budget estimates of new (obligational) authority, fiscal 90,990,338,000
House bill, fiscal year 1998.............................91,461,593,000
Senate bill, fiscal year 1998............................90,367,535,000
Conference agreement, fiscal year 1998...................90,735,430,000
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1997..+4,839,926,558
  Budget estimates of new (obligational) authority, fiscal -254,908,000
  House bill, fiscal year 1998.............................-726,163,000
  Senate bill, fiscal year 1998............................+367,895,000

     Jerry Lewis,
     Tom DeLay,
     James T. Walsh,
     Dave Hobson,
     Joe Knollenberg,
     R.P. Frelinghuysen,
     Roger F. Wicker,
     Bob Livingston,
     Louis Stokes,
     Alan B. Mollohan,
     Marcy Kaptur,
     Carrie P. Meek,
     David E. Price,
     Dave Obey,
                                Managers on the Part of the House.

     Christopher S. Bond,
     Conrad Burns,
     Ted Stevens,
     Richard Shelby,
     Ben Nighthorse Campbell,
     Larry E. Craig,
     Thad Cochran,
     Barbara A. Mikulski,
     Patrick J. Leahy,
     Frank R. Lautenberg,
     Tom Harkin,
     Barbara Boxer,
     Robert C. Byrd,
     Managers on the Part of the Senate.

                          ____________________