[Congressional Record Volume 143, Number 158 (Monday, November 10, 1997)]
[Senate]
[Pages S12457-S12460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SENIOR CITIZEN HOME EQUITY PROTECTION ACT

  The text of the bill (S. 562) to amend section 255 of the National 
Housing Act to prevent the funding of unnecessary or excessive costs 
for obtaining a home equity conversion mortgage, as passed by the 
Senate on November 9, 1997, is as follows:

                                 S. 562

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Senior Citizen Home Equity 
     Protection Act''.

[[Page S12458]]

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

     SEC. 101. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF 
                   UNNECESSARY OR EXCESSIVE COSTS.

       Section 255(d) of the National Housing Act (12 U.S.C. 
     1715z-20(d)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) has received full disclosure of all costs to the 
     mortgagor for obtaining the mortgage, including any costs of 
     estate planning, financial advice, or other related services; 
     and'';
       (2) in paragraph (9)(F), by striking ``and'';
       (3) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(11) have been made with such restrictions as the 
     Secretary determines to be appropriate to ensure that the 
     mortgagor does not fund any unnecessary or excessive costs 
     for obtaining the mortgage, including any costs of estate 
     planning, financial advice, or other related services.''.

     SEC. 102. IMPLEMENTATION.

       (a) Notice.--The Secretary of Housing and Urban Development 
     shall, by interim notice, implement the amendments made by 
     section 101 in an expeditious manner, as determined by the 
     Secretary. Such notice shall not be effective after the date 
     of the effectiveness of the final regulations issued under 
     subsection (b).
       (b) Regulations.--The Secretary shall, not later than the 
     expiration of the 90-day period beginning on the date of the 
     enactment of this Act, issue final regulations to implement 
     the amendments made by section 101. Such regulations shall be 
     issued only after notice and opportunity for public comment 
     pursuant to the provisions of section 553 of title 5, United 
     States Code (notwithstanding subsections (a)(2) and (b)(3)(B) 
     of such section).
 TITLE II--TEMPORARY EXTENSION OF PUBLIC HOUSING AND SECTION 8 RENTAL 
                         ASSISTANCE PROVISIONS

     SEC. 201. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS 
                   AND PREFERENCES FOR ASSISTED HOUSING.

       Section 402(f) of The Balanced Budget Downpayment Act, I 
     (42 U.S.C. 1437aa note) is amended by striking ``and 1997'' 
     and inserting ``, 1997, and 1998''.

     SEC. 202. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

       Section 1002(d) of the Emergency Supplemental 
     Appropriations for Additional Disaster Assistance, for Anti-
     terrorism Initiatives, for Assistance in the Recovery from 
     the Tragedy that Occurred at Oklahoma City, and Rescissions 
     Act, 1995 (42 U.S.C. 1437c note) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1998''.

     SEC. 203. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-
                   FINANCE DEVELOPMENTS.

       (a) Extension of Authority.--Section 201(a)(2) of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (42 U.S.C. 1437l note) is amended to read as follows:
       ``(2) Applicability.--Section 14(q) of the United States 
     Housing Act of 1937 shall be effective only with respect to 
     assistance provided from funds made available for fiscal year 
     1998 or any preceding fiscal year, except that the authority 
     in the first sentence of section 14(q)(1) of that Act to use 
     up to 10 percent of the allocation of certain funds for any 
     operating subsidy purpose shall not apply to amounts made 
     available for fiscal year 1998.''.
       (b) Mixed Finance.--Section 14(q)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437l(q)(1)) is amended by 
     inserting after the first sentence the following: ``Such 
     assistance may involve the drawdown of funds on a schedule 
     commensurate with construction draws for deposit into an 
     interest earning escrow account to serve as collateral or 
     credit enhancement for bonds issued by a public agency for 
     the construction or rehabilitation of the development.''.

     SEC. 204. MINIMUM RENTS.

       Section 402(a) of The Balanced Budget Downpayment Act, I 
     (Public Law 104-99; 110 Stat. 40) is amended in the matter 
     preceding paragraph (1) by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997 and 1998''.

     SEC. 205. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE 
                   PROGRAM.

       Section 203(d) of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1996 (as contained in section 101(e) of 
     the Omnibus Consolidated Rescissions and Appropriations Act 
     of 1996 (Public Law 104-134)) (42 U.S.C. 1437f note) is 
     amended by striking ``and 1997'' and inserting ``, 1997, and 
     1998''.
  TITLE III--REAUTHORIZATION OF FEDERALLY ASSISTED MULTIFAMILY RENTAL 
                           HOUSING PROVISIONS

     SEC. 301. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.

       Section 542 of the Housing and Community Development Act of 
     1992 (12 U.S.C. 1707 note) is amended--
       (1) in subsection (b)(5), by inserting before the period at 
     the end of the first sentence the following: ``, and not more 
     than an additional 15,000 units during fiscal year 1998''; 
     and
       (2) in the first sentence of subsection (c)(4)--
       (A) by striking ``and'' and inserting a comma; and
       (B) by inserting before the period at the end the 
     following: ``, and not more than an additional 15,000 units 
     during fiscal year 1998''.

     SEC. 302. HUD DISPOSITION OF MULTIFAMILY HOUSING.

       Section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended by 
     inserting after ``owned by the Secretary'' the following: ``, 
     including the provision of grants and loans from the General 
     Insurance Fund for the necessary costs of rehabilitation or 
     demolition,''.

     SEC. 303. MULTIFAMILY MORTGAGE AUCTIONS.

       Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 
     1715l(g)(4)(C)) is amended--
       (1) in the first sentence of clause (viii), by striking 
     ``September 30, 1996'' and inserting ``December 31, 2000''; 
     and
       (2) by adding at the end the following:
       ``(ix) The authority of the Secretary to conduct 
     multifamily auctions under this subparagraph shall be 
     effective for any fiscal year only to the extent and in such 
     amounts as are approved in appropriations Acts for the costs 
     of loan guarantees (as defined in section 502 of the 
     Congressional Budget Act of 1974), including the cost of 
     modifying loans.''.

     SEC. 304. CLARIFICATION OF OWNER'S RIGHT TO PREPAY.

       (a) Prepayment Right.--Notwithstanding section 211 of the 
     Housing and Community Development Act of 1987 or section 221 
     of the Housing and Community Development Act of 1987 (as in 
     effect pursuant to section 604(c) of the Cranston-Gonzalez 
     National Affordable Housing Act), subject to subsection (b), 
     with respect to any project that is eligible low-income 
     housing (as that term is defined in section 229 of the 
     Housing and Community Development Act of 1987)--
       (1) the owner of the project may prepay, and the mortgagee 
     may accept prepayment of, the mortgage on the project, and
       (2) the owner may request voluntary termination of a 
     mortgage insurance contract with respect to such project and 
     the contract may be terminated notwithstanding any 
     requirements under sections 229 and 250 of the National 
     Housing Act.
       (b) Conditions.--Any prepayment of a mortgage or 
     termination of an insurance contract authorized under 
     subsection (a) may be made--
       (1) only to the extent that such prepayment or termination 
     is consistent with the terms and conditions of the mortgage 
     on or mortgage insurance contract for the project; and
       (2) only if owner of the project involved agrees not to 
     increase the rent charges for any dwelling unit in the 
     project during the 60-day period beginning upon such 
     prepayment or termination.
          TITLE IV--REAUTHORIZATION OF RURAL HOUSING PROGRAMS

     SEC. 401. HOUSING IN UNDERSERVED AREAS PROGRAM.

       The first sentence of section 509(f)(4)(A) of the Housing 
     Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking 
     ``fiscal year 1997'' and inserting ``fiscal years 1997, 1998, 
     and 1999''.

     SEC. 402. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS 
                   AND FAMILIES AND OTHER LOW-INCOME PERSONS AND 
                   FAMILIES.

       (a) Authority To Make Loans.--Section 515(b)(4) of the 
     Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by 
     striking ``September 30, 1997'' and inserting ``September 30, 
     1999''.
       (b) Set-Aside for Nonprofit Entities.--The first sentence 
     of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(w)(1)) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997, 1998, and 1999''.

     SEC. 403. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) 
     is amended--
       (1) in subsection (q), by striking paragraph (2) and 
     inserting the following:
       ``(2) Annual limitation on amount of loan guarantee.--In 
     each fiscal year, the Secretary may enter into commitments to 
     guarantee loans under this section only to the extent that 
     the costs of the guarantees entered into in such fiscal year 
     do not exceed such amount as may be provided in appropriation 
     Acts for such fiscal year.'';
       (2) by striking subsection (t) and inserting the following:
       ``(t) Authorization of Appropriations.--There are 
     authorized to be appropriated for each of fiscal years 1998 
     and 1999 for costs (as such term is defined in section 502 of 
     the Congressional Budget Act of 1974) of loan guarantees made 
     under this section such sums as may be necessary for such 
     fiscal year.''; and
       (3) in subsection (u), by striking ``1996'' and inserting 
     ``1999''.
      TITLE V--REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM

     SEC. 501. PROGRAM EXPIRATION.

       Section 1319 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4026) is amended by striking ``September 30, 
     1997'' and inserting ``September 30, 1999''.

[[Page S12459]]

     SEC. 502. BORROWING AUTHORITY.

       Section 1309(a)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016(a)(2)) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1999''.

     SEC. 503. EMERGENCY IMPLEMENTATION OF PROGRAM.

       Section 1336(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4056(a)) is amended by striking ``September 30, 
     1996'' and inserting ``September 30, 1999''.

     SEC. 504. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.

       Subsection (c) of section 1376 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4127(c)) is amended to read 
     as follows:
       ``(c) For studies under this title, there are authorized to 
     be appropriated such sums as may be necessary for each of 
     fiscal years 1998 and 1999, which shall remain available 
     until expended.''.
              TITLE VI--NATIVE AMERICAN HOUSING ASSISTANCE

     SEC. 601. SUBSIDY LAYERING CERTIFICATION.

       Section 206 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4136) is amended--
       (1) by striking ``certification by the Secretary'' and 
     inserting ``certification by a recipient to the Secretary''; 
     and
       (2) by striking ``any housing project'' and inserting ``the 
     housing project involved''.

     SEC. 602. INCLUSION OF HOMEBUYER SELECTION POLICIES AND 
                   CRITERIA.

       Section 207(b) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4137(b)) is 
     amended--
       (1) by striking ``Tenant Selection.--'' and inserting 
     ``Tenant and Homebuyer Selection.--'';
       (2) in the matter preceding paragraph (1), by inserting 
     ``and homebuyer'' after ``tenant''; and
       (3) in paragraph (3)(A), by inserting ``and homebuyers'' 
     after ``tenants''.

     SEC. 603. REPAYMENT OF GRANT AMOUNTS FOR VIOLATION OF 
                   AFFORDABLE HOUSING REQUIREMENT.

       Section 209 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4139) is amended by 
     striking ``section 205(2)'' and inserting ``section 
     205(a)(2)''.

     SEC. 604. UNITED STATES HOUSING ACT OF 1937.

       (a) In General.--Section 501(b) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (110 
     Stat. 4042) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5) through (11) as 
     paragraphs (4) through (10), respectively.
       (b) United States Housing Act of 1937.--Section 7 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437e) is 
     amended by striking subsection (h).

     SEC. 605. MISCELLANEOUS.

       (a) Definition of Indian Areas.--Section 4(10) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103(10)) is amended to read as follows:
       ``(10) Indian area.--The term `Indian area' means the area 
     within which an Indian tribe or a tribally designated housing 
     entity, as authorized by 1 or more Indian tribes, provides 
     assistance under this Act for affordable housing.''.
       (b) Cross-Reference.--Section 4(12)(C)(i)(II) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4103(12)(C)(i)(II)) is amended by striking 
     ``section 107'' and inserting ``section 705''.
       (c) Clarification of Certain Exemptions.--Section 101(c) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4111(c)) is amended by adding at the 
     end the following: ``This subsection applies only to rental 
     dwelling units (other than lease-purchase dwelling units) 
     developed under--
       ``(1) the United States Housing Act of 1937 (42 U.S.C. 1437 
     et seq.); or
       ``(2) this Act.''.
       (d) Applicability.--Section 101(d)(1) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4111(d)(1)) is amended by inserting before 
     the semicolon at the end the following: ``, except that this 
     paragraph only applies to rental dwelling units (other than 
     lease-purchase dwelling units) developed under the United 
     States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or under 
     this Act''.
       (e) Submission of Indian Housing Plan.--Section 102(a) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4112(a)) is amended--
       (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
       (2) in paragraph (1)(A), as so designated by paragraph (1) 
     of this subsection, by adding ``or'' at the end;
       (3) by striking ``(2)'' and inserting ``(B)''; and
       (4) by striking ``(3)'' and inserting ``(2)''.
       (f) Clarification.--Section 103(c)(3) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4113(c)(3)) is amended by inserting ``not'' 
     before ``prohibited''.
       (g) Applicability of Provisions of Civil Rights.--Section 
     201(b)(5) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4131(b)(5)) is amended--
       (1) by striking ``Indian tribes'' and inserting ``federally 
     recognized tribes and the tribally designated housing 
     entities of those tribes''; and
       (2) by striking ``under this subsection'' and inserting 
     ``under this Act''.
       (h) Eligibility.--Section 205(a)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4135(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end; 
     and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) in the case of a contract to purchase existing 
     housing, is made available for purchase only by a family that 
     is a low-income family at the time of purchase;
       ``(C) in the case of a lease-purchase agreement for 
     existing housing or for housing to be constructed, is made 
     available for lease-purchase only by a family that is a low-
     income family at the time the agreement is entered into; and
       ``(D) in the case of a contract to purchase housing to be 
     constructed, is made available for purchase only by a family 
     that is a low-income family at the time the contract is 
     entered into; and''.
       (i) Tenant Selection.--Section 207(b)(3)(B) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4137(b)(3)(B)) is amended by striking ``of 
     any rejected applicant of the grounds for any rejection'' and 
     inserting ``to any rejected applicant of that rejection and 
     the grounds for that rejection''.
       (j) Availability of Records.--Section 208 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4138) is amended--
       (1) in subsection (a), by striking ``paragraph (2)'' and 
     inserting ``subsection (b)''; and
       (2) in subsection (b), by striking ``paragraph (1)'' and 
     inserting ``subsection (a)''.
       (k) IHP Requirement.--Section 184(b)(2) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) 
     is amended by striking ``that is under the jurisdiction of an 
     Indian tribe'' and all that follows before the period at the 
     end.
       (l) Authorization of Appropriations.--Section 184(i)(5)(C) 
     of the Housing and Community Development Act of 1992 (12 
     U.S.C. 1715z-13a(i)(5)(C)) is amended by striking ``note'' 
     and inserting ``not''.
       (m) Environmental Review Under the Indian Housing Loan 
     Guarantee Program.--Section 184 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
       (1) by redesignating subsection (k) as subsection (l); and
       (2) by inserting after subsection (j) the following:
       ``(k) Environmental Review.--For purposes of environmental, 
     review, decisionmaking, and action under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
     any other law that furthers the purposes of that Act, a loan 
     guarantee under this section shall--
       ``(1) be treated as a grant under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.); and
       ``(2) be subject to the regulations promulgated by the 
     Secretary to carry out section 105 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4115).''.
       (n) Public Availability of Information.--
       (1) In general.--Title IV of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161 
     et seq.) is amended by adding at the end the following:

     ``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

       ``Each recipient shall make any housing plan, policy, or 
     annual report prepared by the recipient available to the 
     general public.''.
       (2) Table of contents.--Section 1(b) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 note) is amended in the table of contents by 
     inserting after the item relating to section 407 the 
     following:

``Sec. 408. Public availability of information.''.

       (o) Non-Federal Funds.--Section 520(l)(5)(B) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     11903a(l)(5)(B)) is amended by striking ``and Indian housing 
     authorities'' and inserting ``and units of general local 
     government''.
       (p) Ineligibility of Indian Tribes.--Section 460 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899h-1) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal year 1998''.
       (q) Indian Housing Early Childhood Development Program.--
       (1) Repeal.--Section 518 of the Cranston-Gonzalez National 
     Affordable Housing Act (12 U.S.C. 1701z-11 note) is repealed.
       (2) Technical correction.--
       (A) In general.--Section 501(d)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (110 
     Stat. 4042), and the amendment made by that section, is 
     repealed.
       (B) Applicability.--Section 519 of Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 1437a-1) shall be 
     applied and administered as if section 501(d)(1) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (104 Stat. 4042) had not been enacted.
       (3) Effective date.--This subsection and the amendments 
     made by this subsection shall be construed to have taken 
     effect on October 26, 1996.

[[Page S12460]]

       (r) Tribal Eligibility Under the Drug Elimination 
     Program.--The Public and Assisted Housing Elimination Act of 
     1990 (42 U.S.C. 11901 et seq.) is amended--
       (1) in section 5123, by inserting ``Indian tribes,'' after 
     ``tribally designated housing entities,'';
       (2) in section 5124(a)(7), by inserting ``, Indian tribe,'' 
     after ``agency'';
       (3) in section 5125(a), by inserting ``Indian tribe,'' 
     after ``entity,''; and
       (4) in section 5126, by adding at the end the following:
       ``(6) Indian tribe.--The term `Indian tribe' has the 
     meaning given that term in section 4 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4103).''.
       (s) Reference in the Public and Assisted Housing Drug 
     Elimination Act of 1990.--Section 5126(4)(D) of the Public 
     and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
     11905(4)(D)) is amended by inserting ``of 1996'' before the 
     period.

                          ____________________