[Congressional Record Volume 144, Number 96 (Friday, July 17, 1998)]
[House]
[Pages H5743-H5821]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1999
The SPEAKER pro tempore (Mr. Shaw). Pursuant to House Resolution 501
and rule XXIII, the Chair declares the House in the Committee of the
Whole House on the State of the Union for the consideration of the
bill, H.R. 4194.
{time} 0919
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 4194) making appropriations for the Departments of Veterans
Affairs and Housing and Urban Development, and for sundry independent
agencies, boards, commissions, corporations, and offices for
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the fiscal year ending September 30, 1999, and for other purposes, with
Mr. Combest in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered as having
been read the first time.
Under the rule, the gentleman from California (Mr. Lewis) and the
gentleman from Ohio (Mr. Stokes) each will control 30 minutes.
The Chair recognizes the gentleman from California (Mr. Lewis).
Mr. LEWIS of California. Mr. Chairman, I want to at the outset
mention to my colleagues that beyond the substance of this bill, which
is considerable, during the day today I expect that we will have a good
deal of discussion of the reality that there is another piece of
substance that indeed deserves our recognition, for as many people
know, and I would like the Members who are on their way over time here
today to know, that this is the last bill that I will have the
privilege of working with my colleague, the gentleman from Ohio (Mr.
Stokes) on, on the floor. I think everybody knows of our friendship,
and I think as this debate goes forward, people will be reminded of the
incredible contribution that the gentleman has made, not just to this
legislation, not just to our committee, but to the House as a whole.
Before we perhaps discuss that in a little different environment than
the one we have on the floor presently, I would like to spend a few
moments with a brief overview of the fiscal year 1999 VA-HUD bill.
Due to the delayed budget process and upcoming election cycle, we
find ourselves working under a very compressed schedule. This is
evidenced by the fact that our Senate VA-HUD counterparts have already
moved their bill through the full committee, and last evening they
completed their debate on the bill. This morning they will begin simply
the voting process. So they really are ahead of us in that cycle, a
most unusual circumstance.
The gentleman from Ohio (Mr. Stokes) and I are hopeful that we can
have a conference report completed before the August recess. That is a
goal that may be a bit optimistic, but we both are committed to pushing
the process forward and getting a bill that can be signed to the
President's desk.
The bill before us today is within our allocation in both budget
authority and outlays. Our proposal provides $70.894 billion, including
$10.2 billion for Section 8 rental assistance. Hidden gimmicks in the
President's request, which includes items like receipts from the
tobacco settlement, which of course is a fiction, those items make our
total $70,894 billion in discretionary spending. They appear to be over
the budget request. We are, in fact, if we take out those gimmicks,
some $2 billion in real spending below the administration's request.
The VA-HUD subcommittee, by cutting over $25 billion over the last
several years, has demonstrated that we can, in a bipartisan way,
reduce the rate of growth of government without putting those who rely
upon these programs for assistance, including veterans and residents of
public housing, for example, without putting those citizens in
jeopardy.
With regard to veterans' programs, this bill provides $17.057 billion
for veterans' medical care, an increase of $29 million over the
administration's request. VA medical research is funded at $320
million, an increase of $20 million over the President's request, and
$48 million over last year's bill.
Within HUD's budget, we have funded the Section 8 rental assistance
program at $10.2 billion. The CDBG program and drug elimination grant
programs have been funded at the budget request of $4.725 billion, and
$290 million respectively.
We have also provided $100 million in vouchers designed to implement
welfare reform. The section 202 elderly housing program has been funded
at $645 million, $109 million over the President's request.
Section 811 disabled housing program has been funded at $194 million,
which is an increase of $20 million over the request. Accounts within
HUD which have demonstrated positive results have been increased. Those
that either are without measurable results, or which have not worked
well at all, have been treated differently under this measure.
With regard to the Environmental Protection Agency, we have slightly
increased the Agency's budget over the current fiscal year to $7.422
billion. This included level funding of $1.5 billion for the Superfund,
a program that has been described as being broken by the administrator.
We have been waiting now for several years to receive that promised fix
for the Superfund program. We have also funded the President's request
for Safe Drinking Water State Revolving Funds, SRF, at $775 million, a
$50 million increase over fiscal year 1998, and a Clean Water SRF at
$1.250 billion, an increase of $175 million over the President's
request. Finally, we have fully funded the President's clean water
action plan.
Moving to the National Science Foundation, this bill has increased
funding over last year's level for research by $269 million, for major
equipment, by $16 million and educational programs by $10 million. As a
result of the Frelinghuysen-Neumann amendment, which was adopted in the
full committee, the funding for important research programs has been
increased by approximately 10 percent over the current fiscal year.
With regard to the National Aeronautics and Space Administration,
NASA, we have provided $13.328 billion, a $138 million figure below the
administration's request. In part, this reduction represents the fact
that due to the space station assembly delays, we may be reducing
planned space shuttle launches from eight to six in fiscal year 1999.
NASA's science and aeronautics technical account is below the 1998
level, but is $89 million above the President's request.
We plan to continue our positive working relationship with NASA's
Administrator, Dan Goldin, to ensure that our final bill reflects our
mutual priorities involving science, research, manned space flight, as
well as space station assembly.
Moving into AmeriCorps, we have decided that instead of entering into
an extended floor fight involving the funding for the Corporation of
National and Community Service, the committee intends to first work
very closely with our colleagues in the other body. This bill zeroes
that program. It is pretty apparent, though, to the Members of the
House that in the past when such discussions and actions have taken
place, we finally come to a resolution in conference that reflected
that broad will of both bodies, and I anticipate that that will be the
case in this instance.
Finally, I would like to express my deep reservations to the
President of attaching H.R. 2, the public housing reform bill, to this
important funding bill in which HUD is just one important component of
a much broader and difficult package. While I certainly understand the
reasons that we are once again being asked to carry this heavy load
that essentially is an authorizing load, it is my fervent hope that
authorizing committees of jurisdiction will work to find an acceptable
compromise with all parties so that this measure does not unfairly;
that is, the authorizing side does not unfairly bring down an
appropriations bill that otherwise should be signed into law. I trust
that the leadership will work with us to assure that the overall VA-HUD
bill, which currently strikes a delicate balance, will not ultimately
be placed in jeopardy.
In closing, my colleagues, in terms of this portion of any formal
remarks I might have, outside of expressing the pleasure that I have
had working with my colleague, the gentleman from Ohio (Mr. Stokes),
and the reality that we think this bill, that is the appropriations
bill, indeed does, once again, reflect the best of nonpartisan effort
in dealing with very complex programs. That product is the result of
the hard work of the gentleman from Ohio (Mr. Stokes), first and
foremost.
I want to further acknowledge the hard work and dedication of Del
Davis and David Reich, and Fredette West from the minority staff, as
well as Paul Thomson, who is serving as my clerk today; Tim Peterson,
Valerie Baldwin, and Dena Baron; from my own staff, David LesStrang,
Alex Heslop and Jeff Schockey.
{time} 0930
I want to take a moment to pay special tribute and attention to my
committee staff director, Frank Cushing, who, unfortunately, could not
be with us today due to the death of Alan Tack Hammer, his wife Amy's
father.
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Mr. LEWIS of California. Mr. Chairman, I reserve the balance of my
time.
Mr. STOKES. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, before making my formal remarks, I want to take just a
moment to express to the gentleman from California (Mr. Lewis), the
chairman, the extreme pleasure and honor I deem it to have been able to
work with him on the VA-HUD subcommittee for so many years. During that
period of time he and I have been able to establish a very personal
friendship, and I think it is important for all my colleagues to know
and understand that the bill that we bring before the House today is
one that he and I have crafted together, under circumstances where he
has at all times been extremely fair to me. He has been cooperative in
every respect, in terms of all of my concerns relative to this
legislation, and serving with the gentleman has been one of the great
honors of my career. I want him to know that, as we take this bill
through the House, that all the courtesies, all the professional
consideration that he has afforded me is deeply appreciated.
Mr. Chairman, this is a bittersweet moment, bringing to the floor
with my chairman the last VA-HUD spending measure that I will have the
privilege to handle. In many ways, this 1999 bill resembles all the
earlier bills of this subcommittee that I have worked on. It does much
to provide for veterans, for housing, community development, for
environmental protection and emergency management, and for science and
education throughout the Nation. Unfortunately, it also falls short in
satisfying many of the legitimate needs in some of these areas.
There is much in this legislation that I am proud of and I support
without hesitation. There are also provisions and funding levels that I
hope will be changed as we move through the process.
The gentleman from California has detailed the important aspects of
the bill and I will not repeat them. I would like to take a moment or
two, though, to address a few areas of the bill.
In the housing area I am pleased to say that we have been able to
provide badly needed increases in some programs, including public
housing capital funds, the Hope VI program for modernization of
distressed public housing, and homeless assistance grants. I am also
glad to report that the bill provides an increase for fair housing
programs, and I appreciate the efforts of both the gentleman from
California (Mr. Lewis), the chairman, and also our colleague, the
gentleman from Michigan (Mr. Knollenberg), in working out a mutually
satisfactory arrangement in this area.
Another positive development in the bill is the 17,000 new housing
assistance vouchers that are provided to help families make the
transition from welfare to work. However, I note the number provided is
considerably less than the number requested by the administration,
which was 50,000 vouchers for welfare to work and another 34,000
vouchers to help provide permanent homes for the homeless. These are
areas where the need is great, and I intend to offer an amendment to
increase the number of new vouchers provided.
The administration is very concerned that the committee's bill
includes no funding for the corporation for national and community
service, the AmeriCorps program. I think everyone in the chamber knows
that there will be no signed VA-HUD bill without adequate AmeriCorps
funding. Apparently, a majority of the House believe some measure of
victory can be claimed if the bill, as passed by the House, contains no
funding for this initiative, even if the conference agreement does. At
any rate, I am sure that the bill presented to the President will
contain funding for AmeriCorps.
Another provision that causes the administration much concern is that
dealing with the Kyoto protocol. The administration has repeatedly
stated that there will be no implementation of the Kyoto protocol
unless and until the Senate ratifies a treaty. Thus, the provision is
unnecessary and the accompanying report language is so broad and vague
as to be nearly meaningless. But the signal it might send to some, that
even working for educational and outreach purposes is not to be
permitted, is, to me, just plain short-sighted.
Funding for EPA's Superfund program has been capped at last year's
level of $1.5 billion, $650 million below the request. In addition,
brownfields funding has been reduced $15 million below the 1998 level,
and the bill contains a provision limiting those funds to assessments
only, no money for brownfields cleanups.
Most of the Nation's mayors strongly support the brownfields program
and regard the lack of funds for cleanup as the number one impediment
in realizing the full potential of the program. At the appropriate
time, I will offer an amendment, along with the gentlewoman from
Colorado (Ms. DeGette), to strike the provision limiting the
brownfields program.
The bill, as reported from committee, contained a troubling provision
for the Consumer Product Safety Commission that has the effect of
delaying possible rulemaking regarding fire-retardant chemicals in
upholstered furniture. The provision was a triumph of the special
interests over the national good of saving lives and money currently
lost through fires involving furniture that does not have fire-
retardant aspects. The rule we adopted included a self-executing
provision that modified the original language. While the new provisions
are a modest improvement, they still would have the effect desired by
industry of delaying CPSC's rulemaking.
The National Science Foundation fared pretty well in the committee's
recommendations, receiving about two-thirds of the requested increase
for research activities. Still, I wish we could have done more, and
especially in the area of education and human resources. For NASA's
science programs, we were able to provide an increase above the budget,
but the recommended amount is still nearly $150 million below the 1998
level. And the problems with the International Space Station continue.
I am afraid our recommended cut of $170 million would have to be
restored at some point.
If the estimates of the independent Chabrow report on the station are
correct, chances are very good that even more funds than those
requested in the budget will be required. I will do my best to ensure
that the agency's science programs are not the source from which we
make up the inevitable shortfalls in the space station.
In closing, let me say once again that it has been a true pleasure to
work with the gentleman from California (Mr. Lewis), the chairman, on
this bill. We do not always agree completely on every measure, but we
have been able to resolve our differences always in an amicable manner.
I want to thank him and his staff for all the courtesies and
consideration that they have extended to me. I particularly want to say
a word of thanks to Frank Cushing, the subcommittee's staff director,
and along with the chairman I want to extend my condolences to Frank
and Amy over the passing of her father.
I also want to express my appreciation of Paul Thompson, Tim
Peterson, Valerie Baldwin, Dena Baron, who is a detailee to our
subcommittee, along with Jeff Shockey and Alex Heslop on the Chairman's
personal staff. And my special thanks also to two of the members of the
minority staff who have been invaluable to me, Del Davis and David
Reich, along with Fredette West of my own congressional staff.
Mr. Chairman, I just want to say again that no matter what our
differences are relative to this bill, I believe that the chairman and
I, in taking this bill to conference, will be able to work out those
differences and bring back to this House the kind of a bill that we can
all support.
Mr. Chairman, I reserve the balance of my time.
Mr. LEWIS of California. Mr. Chairman, I yield 3 minutes to the
gentleman from Michigan (Mr. Joe Knollenberg), my colleague from the
committee.
(Mr. KNOLLENBERG asked and was given permission to revise and extend
his remarks.)
Mr. KNOLLENBERG. Mr. Chairman, I thank the chairman for yielding me
this time, and I rise today in strong support of this bill.
Mr. Chairman, I particularly want to thank the chairman of the
subcommittee, the gentleman from California (Mr. Lewis), and I also
want to extend thanks to the ranking member, the
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gentleman from Ohio (Mr. Louis Stokes). As everybody knows, he is
retiring this year. And while he has received a number of accolades, we
continue to add to those, and I want to express mine again today. I
want to join my colleagues in wishing him a fond farewell. He served
the body well, he served his constituents well, and he will be missed.
I would also like to thank, in particular, the staff. Frank Cushing,
who, as has been mentioned, could not be here today because of his
loss. We extend our thoughts and prayers to Frank and his family. I
want to, in particular, though, thank this staff, all of them, who have
been remarkably and extraordinarily helpful in a whole lot of things,
so they deserve a lot of credit for helping us craft this bill.
This appropriation bill is unique in that it covers an array of
diverse agencies, ranging from the VA to NASA to the EPA. And it is not
easy to bring this wide range of interests together into a single bill.
However, the chairman, along with the ranking member, have done, I
think, a great job by forging a relationship that makes this all
possible.
H.R. 4194 is a good bill. However, there is one issue I would like to
stress. We have reiterated in report language our intent and
expectation that HUD will adhere to our guidance and award no funds for
insurance-related purposes, even as part of awards to groups that may
use their FHIP funds for a variety of enforcement activities. FHIP, as
everyone must know, should know, is the Fair Housing Initiatives
Program.
I further want to emphasize that the report allocates a portion of
FHIP appropriations to a nationwide audit of discrimination in housing
rentals and sales in 20 communities. Because this proposed audit is
part of the FHIP, and because its purpose is to investigate
discrimination in housing rentals and sales, there should be no
question that any of the funds allocated for it can be used to
investigate practices of property insurers. However, because HUD has,
in the past, interpreted the Fair Housing Act very liberally, I believe
it is necessary to underscore this point.
The committee report can only be understood to mean that absolutely
no funds, no FHIP funds, including those for the nationwide audit and
any awards for packages of activities by private groups, are to be
spent on activities focused on practices of property insurers or their
agents.
Mr. STOKES. Mr. Chairman, I yield 5 minutes to the gentleman from
Wisconsin (Mr. Obey), the distinguished ranking member of the full
Committee on Appropriations.
Mr. OBEY. Mr. Chairman, I would like to say that as much as I would
like to support this bill, I cannot, for a number of reasons.
First of all, the Committee on Rules, in the action of this House
yesterday, made in order a totally illegitimate amendment to this bill
by adding the 300-page housing bill and authorization bill. And I want
to read my colleagues something that I just picked up on the press out
of U.S. News today.
It said that the legislation would raise the income levels of people
eligible for public housing. The bill would give greater priority to
people making as much as $40,000 to be admitted to public housing,
allowing them to gain housing before lower-income families. Since no
new public housing is being built, and existing waiting lists are years
long, these lower-income families will have no option whatsoever. A
total of 3 million low-income people would be denied access to public
and federally assisted housing, including 1.8 million seniors and
children.
It went on to quote Secretary Cuomo, HUD Secretary Cuomo, as saying
it is inexcusable that we would take the few units of affordable
housing this Congress has allowed to remain and remove it from the
grasp of the most vulnerable Americans. This means no housing for
America's most vulnerable.
I think that this Congress has no business attaching a proposal like
that to this bill.
{time} 0945
Secondly, I would point out that there are a number of funding level
problems with this bill. The brownfields program is reduced 18 percent
below the President's request. There is very broad and vague language
in the report language which relates to the Kyoto Protocol on climate
change.
I agree with those who say that we should not be taking actions to
implement any treaty before that treaty is ratified, and I would not
vote for that treaty under existing circumstances because of what it
does not require other countries, such as China, to do. It is simply
not strong enough.
But I, nonetheless, believe that the committee language is far too
broad. It even presents educational information about the issue. And I
think that that is clearly simply a favor to special interests and it
is a long-term detriment to America's public health and to the
stability of the world's economy and its climate.
I would say that this also, in my view, underfunds what we ought to
be doing with veterans' health care. And in my judgment, the reason
that we are underfunding veterans' health care, underfunding housing,
underfunding EPA, Superfund and a variety of other programs is because
we have in this bill some $3\1/2\ billion of veterans' health care
costs which are related to the treatment of tobacco-related diseases.
And it seems to me that the taxpayer should not be paying for the
treatment of those diseases, the tobacco companies should.
Since the Committee on Rules determined it was going to make in order
an irrelevant authorization bill, I asked the Committee on Rules to
make in order a relevant authorization amendment; and that amendment
would have simply said that instead of the taxpayers being stuck with
that $3\1/2\ billion worth of tobacco-related health treatment cost
that the tobacco companies be assessed to pay for those costs. That
would have enabled us to increase health care for veterans in this bill
by $1.7 billion and to do some other things about some of these drastic
shortfalls that will only get worse as the problems are compounded.
The Committee on Rules did not choose to do that. That means, in my
view, that this bill is essentially an inadequate bill. And until it
is, I have no intention whatsoever of voting for that.
I do not make these statements to in any way criticize the gentleman
from Ohio (Mr. Stokes) or the gentleman from California (Mr. Lewis).
They have done the best they can within the allocation given them. But
the fact is that the allocation is stupid and the fact is that the
Congress is stupid if it does not find a way to require tobacco
companies to meet health care costs that the taxpayers should not be
saddled with. And until we do that, we are not going to have the
resources to meet the other needs facing this country.
It is about time that big tobacco does not have the ear of this
Congress. It is about time that big business loses the ear of this
Congress. It is about time that the public interest once again
prevails.
And, in my view, with the priorities that have been set at a higher
level than the subcommittee has the authority to do anything about,
until those priorities are changed, we should not be supporting the
outcome of those priorities.
Mr. LEWIS of California. Mr. Chairman, I yield 4 minutes to the
gentleman from New Jersey (Mr. Frelinghuysen).
(Mr. FRELINGHUYSEN asked and was given permission to revise and
extend his remarks.)
Mr. FRELINGHUYSEN. Mr. Chairman, I thank the gentleman for yielding.
I rise in support of the VA-HUD Appropriations Bill. And as a member
of the committee, I would like to thank the chairman the gentleman from
California (Mr. Lewis) and the ranking member the gentleman from Ohio
(Mr. Stokes) and their staffs for their hard work and guidance
throughout this year on a whole host of issues, and most particularly
the gentleman from California (Mr. Lewis) for his extra efforts working
with me to improve the Superfund program, which is so important to New
Jersey, and the special attention of the gentleman and our staff to
issues affecting housing for people with disabilities. Were it not for
their hard work and diligence, those two issues, to my mind, would not
be adequately addressed.
And I would be remiss, Mr. Chairman, if I did not commend and
recognize the years of service of the ranking
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member the gentleman from Ohio (Mr. Stokes).
My colleague served with my father in Congress when he was in
Congress and was one of the first people to welcome me to this body.
His presence in Congress, as well as his service on this committee,
will be greatly missed. I have been able to count on his expertise any
number of times. His institutional memory is amazing. And his
retirement will, without doubt, affect the committee in countless ways.
I thank the gentleman for his friendship and advice.
Mr. Chairman, I would also like to briefly call to my colleagues'
attention page 11 of the committee's report and thank both the ranking
member and the chair for their agreeing to include this language.
This language highlights the problems with the Veterans
Administration's new National Formulary for drugs and medical devices.
This is a potentially explosive issue, and Members of Congress better
have it on their radar screens.
Simply put, the new VA policy is hindering proper medical treatment
of veterans by drastically limiting physicians' in the VA choice of
medicine from a list, or a formulary, that they can prescribe to treat
our veterans.
As this new policy is gradually being put into effect, doctors,
residents of our VA hospitals, and veterans organizations familiar with
the system have relayed some disturbing results. The stories I have
heard from our veterans strike right at the quality of life and care
issues, including one veteran who was forced to switch his Parkinson's
medication and, as a result, is having a recurrence of his Parkinson's
symptoms.
By putting overly restrictive limitations on which type of a medicine
a VA doctor can choose, we are severely restricting access to the
newest and most effective medications available. Unfortunately,
bureaucrats at the VA are assuming that ``one size fits all'' when it
comes to medicine. Well, one medicine does not fit all.
I urge all of my colleagues to review this language and listen to
what our veterans and the National Alliance for the Mentally Ill are
saying about this issue. This is a critical issue. I support this bill.
This particular issue is one that we should be concentrating on.
Mr. STOKES. Mr. Chairman, I am pleased to yield 3 minutes to the
gentleman from Virginia (Mr. Mollohan) the very hard working and highly
respected member of the subcommittee.
Mr. MOLLOHAN. Mr. Chairman, I appreciate the time that the ranking
member has given me to make a few comments on this bill, and I rise to
generally express my satisfaction for the bill in the main.
First let me compliment our chairman the gentleman from California
(Mr. Lewis) and the gentleman from Ohio (Mr. Stokes) for the quality of
their contribution to this bill. Year in and year out, through the
process of marking up this bill putting it together, these two
gentlemen, real gentleman, work extremely hard applying their very
formidable talents to coming forth with an extraordinary piece of
legislation under the circumstances that they find themselves and under
the allocations that they are given.
This is I will note, and I will have more to say on it later, the
last bill of the gentleman from Ohio (Mr. Stokes) the last time he will
be bringing this bill before the full House. And we are terribly
appreciative of his wonderful service over many, many years.
Every year, the Subcommittee on VA, HUD and Independent Agencies
works to strike the right balance in funding what is really an eclectic
mission of vital services and programs to our people. I hope that every
Member of this House appreciates not only the difficulty of that task
but also the sense of fairness that the gentleman from California (Mr.
Lewis) and the gentleman from Ohio (Mr. Stokes) bring to it. Their
conscientious approach is certainly evident in the bill that is before
us now.
And in review of it, I am especially pleased with the increased
funding for Veterans Affairs regarding medical and prosthetic research
that we are committing major resources to HUD, funding the important
Community Development Block Grant and Public Housing Operating grants,
that we are increasing money to the EPA for science and technology
research, including research on particulate matter, and that we are
giving greater resources for water assistance grants, which are so
critical to the health of our local communities.
Of course, no appropriation bill can be all things to all people.
Everyone here accepts that fact. But today we have been asked to accept
something more, and it is very unfortunate that extraneous legislation
has been made in order by the rule. Our appropriations bill is not the
place for it, and that is why I join so many of my colleagues in
opposing the rule.
But this appropriations bill is a good bill, and I look forward to
working with the chairman and ranking member in making it better by
increasing funding to underfunded programs as we move the bill through
the process.
Mr. LEWIS of California. Mr. Chairman, it is my pleasure to yield
2\1/4\ minutes to the gentlewoman from New Jersey (Mrs. Roukema).
Mrs. ROUKEMA. Mr. Chairman, I certainly thank the chairman for
yielding.
Mr. Chairman, I want to commend the committee for the work that they
have done on this well-rounded bill. I have a few problems with the
environmental riders, but let us put that aside for now and speak about
the positives in this bill.
First let me indicate that I want to support and identify myself with
the comments of my colleague the gentleman from New Jersey (Mr.
Frelinghuysen) particularly on the issue he outlined with respect to
the Veterans Administration.
I certainly say we must accept the fact that this bill contains
language concerning a time credit of $20 million to the Veterans'
Integrated Service network. And that is what is needed, particularly in
New Jersey and for the northeast.
There are certifiable needs throughout New Jersey, from East Orange
and the Lyon's facility and throughout other veterans hospitals in the
region. And I certainly call upon the Secretary of the VA to act
immediately on the committee's direction after this bill is signed into
law.
But let me give a little more time to the subject of the FHA single-
family mortgage issue. I want to rise in strong support of this
subject. It is strongly needed. The increase in the FHA loan limit is
an issue that we have long supported on the Committee on Banking and
Financial Services.
The gentleman from Florida (Mr. McCollum) and I have worked together
to urge attention of the committee to this issue. And certainly, there
is nothing that is more representative of the American dream than the
64-year history of the FHA single-family insurance program.
And particularly, as a representative from New Jersey, I want to
point out that in states like New Jersey, but not exclusively New
Jersey, where loan prices are traditionally higher than in other parts
of the country, the increase is fundamental if the FHA loan program is
to be a viable one. We need this increase urgently, it is overdue. And
I thank the committee for their intelligent and far-reaching, far-
searching work on this issue.
I want to commend the Committee for its work on what I consider to be
a well-rounded bill. While I do have reservations on several of the so-
called ``environmental riders'', included in this legislation, I want
to rise in strong support of the provisions to increase the FHA single-
family mortgage insurance limit. In addition to it being good public
policy, the revenues raised by this measure are being put toward
necessary programs--$10 million in needed medical research for disabled
veterans, and $70 million of the National Science Foundation which will
be used by colleges and universities, like Rutgers and Princeton in my
own state New Jersey, to help educate our next generation of
scientists.
The increase in the FHA loan limit is an issue that I have long
supported. For a state like New Jersey this increase is key. I worked
with Congressman McCollum to gather signatures on a letter to Chairman
Lewis and Ranking Minority Member Lewis Stokes urging that this
provision be included in the VA/HUD bill.
Throughout its 64-year history, the FHA single family insurance has
enabled millions of American families to achieve the dream of home
ownership The American Dream at no cost to taxpayers. It has provided
countless home ownership opportunities to millions of
[[Page H5753]]
deserving families who were denied or deprived of owning a home through
the conventional market. The FHA program has also generated significant
revenue benefiting the U.S. Treasury and helped stimulate our nation's
economy through housing and neighborhood development.
Yet, FHA's effectiveness is limited because its loan limits have not
been allowed to keep pace with market development and changes. Many
families have been denied home ownership opportunities because the
arbitrary constraints on the maximum mortgage amount prevent FHA from
reaching many moderate-income families. In States like New Jersey where
home prices are traditionally higher than in other parts of the
country, the increase is fundamental if the FHA loan program is to be
viable.
Under the measure included in the committee-reported bill, the
general limit on FHA loans would be increased from $86,317 to $109,032
(i.e. from 38% to 48% of the Fannie Mae and Freedie Mac ``conforming''
loan limit), while the limit on FHA loans in high-cost areas from
$170,362 to $197,620 (i.e. from 75% to 87% of conforming loan limit).
The Administration had requested that FHA loan limits be raised to be a
nationwide ceiling of $227,150. The provisions included in this bill
represent a fair common sense compromise that will provide a measure of
fairness to American consumers residing in under served markets, and
generate $80 million in additional revenues.
Home ownership is the cornerstone of the American Dream. This FHA
loan-limit increase proposal included in the bill helps to further that
dream for many hard-working Americans who reside in those markets that
are currently under served.
Mr. Chairman, I rise today to speak on an issue that is vital to the
veterans of New Jersey and the Northeast.
This bill contains language that urges the Veterans Administration to
provide for a one time credit of $20 million to the Veterans Integrated
Service Network (VISN) Three, which serves veterans of New Jersey and
the Northeast. This language is right and fair.
A General Accounting Office (GAO) revealed that the Network 3
Director, James Farsetta, returned $20 million for the Fiscal Year 1997
budget to the Veterans Administration national offices in Washington.
According to the GAO, the Network 3 Director found ``no prudent use''
for these funds. Frankly, with all the funding cutbacks already
negatively impacting the justifiable health care needs of the veterans
of Network 3, I strongly believe that there are many prudent ways this
money could be spent.
At the same time this money was returned to Washington, my office had
numerous certifiable complaints from the East Orange and Lyons
facilities. Most recently, a patient at Lyons Veterans Affairs Medical
Center, which mainly serves psychiatric patients, was found dead after
wandering off site unsupervised. He was missing for three days and
found only 150 feet from the Hospital's administration building. It is
interesting to note that due to funding restraints, New Jersey's VA
hospitals have eliminated over 240 jobs. It is obvious to me that the
$20 million could have been spent in many prudent ways.
The implementation of the VA's new funding formula known as Veterans
Equitable Resource Allocation (VERA) has negatively impacted funding of
veterans' health care in New Jersey and the northeastern United States.
New Jersey and the Northeast will lose millions of dollars over the
next three years.
To save money, the VA has cut back on numerous services for veterans
and instituted various managed care procedures that have the impact of
destroying the quality of care the veterans receive. For instance, the
VA has reduced the amount of treatment offered to those who suffer from
Post Traumatic Stress Disorder (PTSD) and reduced the number of medical
personnel at various health centers.
As a result of these cutbacks on top of the $20 million giveaway,
there has been an erosion of confidence between veterans and the VA.
This erosion threatens to destroy the solemn commitment that this
Nation made to its veterans when they were called to duty.
I call on the Secretary of the VA to act immediately on the
Committee's direction after this bill is signed into law.
The CHAIRMAN. The gentleman from California (Mr. Lewis) has 11\3/4\
minutes remaining, and the gentleman from Ohio (Mr. Stokes) has 13\1/2\
minutes remaining.
Mr. STOKES. Mr. Chairman, I am pleased to yield 2 minutes to the
gentlewoman from Florida (Mrs. Meek) another very distinguished member
of our subcommittee and an extremely hard-working lady.
Mrs. MEEK of Florida. Mr. Chairman, I want to thank my colleague and
admired member and leader the gentleman from Ohio (Mr. Stokes) and I
want to thank my chairman, who has been both fair and efficient in this
bill. And I am urging being the Congress to pass this VA-HUD bill.
It was the gentleman from Wisconsin (Mr. Obey) who said that Congress
is to define problems and differences and to devise solutions to these
problems. I think that is the way the Subcommittee on VA, HUD and
Independent Agencies worked to do this. They were not able in many
instances to solve all the problems, but they did try to find solutions
to many of them. And I want to commend our committee for that.
There are some things in the bill that I would like to go have seen
to have appropriated more money to do the good things that we started
some time ago, and one of them was the Corporation for National and
Community Services. Another one is housing. And I think the committee
addressed housing in a good way. But of course, the more housing
vouchers we can receive in poor communities, the better it will be.
So I appreciate the committee addressing the housing voucher
situation and raising that level. And I repeat, I would have liked to
have seen more.
I would also like to see our committee continue in its direction to
improve the environment, not to cut back with drastic reduction, but to
continue to provide those assistance that we so desperately need.
{time} 1000
One of my other major concerns to the committee is that the Economic
Development Initiative, which has helped so many of us in cities where
we have so many poor people being helped by government, providing jobs,
doing the kinds of things that good job creation can do, I want to
commend the committee for looking at that, but we did not go far enough
in providing enough money for the economic development initiative to
take care of the cities.
Mr. LEWIS of California. Mr. Chairman, I yield such time as he may
consume to the gentleman from Ohio (Mr. Hobson), a member of the
committee, for a colloquy.
Mr. HOBSON. Mr. Chairman, I would like to ask the chairman of the
subcommittee, my good friend, the gentleman from California (Mr. Lewis)
to enter into a colloquy to clarify report language in this bill
pertaining to a rulemaking being considered by the EPA.
As my colleague knows, report language in this bill addresses the
security risks associated with making risk management plan data
available on the Internet under an EPA rulemaking according to section
112(r) of the Clean Air Act. Members of our committee have heard from
many members of their community who expressed concern that making this
information available to the public via the Internet could have grave
consequences. This type of data, which is already available to relevant
businesses and public safety and law enforcement officers, could result
in mass destruction in the hands of those intent on doing harm. These
security concerns have been echoed by law enforcement and national
intelligence representatives in discussions with the EPA. However, the
EPA has been unable to adequately address the national security
concerns that have been raised.
Mr. Chairman, it is my understanding that discussions between
representative law enforcement, the intelligence community and the EPA
are ongoing and that a resolution of this issue will occur by the end
of this year.
Would the gentleman agree that this is an accurate statement?
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. HOBSON. I yield to the gentleman from California.
Mr. LEWIS of California. Yes, the EPA has been working closely with
FBI and other law enforcement and security experts to develop a system
limiting inappropriate access to such information. That system is
expected to be completed by the end of 1998 as the committee expects to
be updated on a monthly basis on the progress and development of
security protocol.
Mr. HOBSON. Mr. Chairman, when will the agency actually implement the
protocol?
Mr. LEWIS of California. The agency must include a formal protocol
proposal as part of their fiscal year 1999 operations plan before
implementing any security protocol.
Mr. HOBSON. Thank the gentleman from California for his
clarification. I
[[Page H5754]]
think we both agree that this issue is one of vital importance to our
communities and law enforcement officials, and I appreciate the
gentleman's assistance in this matter.
Mr. Chairman, before I conclude, I would just like to take this
moment to thank a member of my staff who has worked on this. She has
been with me for 7 years. Jennifer Cutcher is leaving to get married
and move to Florida, and we are sorry to lose her in our office.
Mr. LEWIS of California. Mr. Chairman, I yield whatever time she
might consume, within limits, to the gentlewoman from New York (Mrs.
McCarthy).
Mrs. McCARTHY of New York. Mr. Chairman, I thank the gentleman for
yielding this time to me.
Mr. Chairman, I would like to call attention to an item that is
contained in the other body's VA-HUD appropriations bill. It is my
understanding that the other body has allowed $7 million for the water
systems improvement project in the village of Hempstead, New York. I
say to the gentleman from California (Mr. Lewis) this program is very
important to a large number of my constituents. I would be interested
in knowing if the gentleman will give consideration in conference to
accepting this project?
Mr. LEWIS of California. Mr. Chairman, will the gentlewoman yield?
Mrs. McCARTHY of New York. I yield to the gentleman from California.
Mr. LEWIS of California. Mr. Chairman, I say to the gentlewoman from
New York (Mrs. McCarthy), as we have discussed personally and in many a
way she has attempted to bring this item to my attention, it indeed is
our intention to address this question in the conference. We are going
to do everything we can to not only recognize the importance but to
assist the gentlewoman and her district as well.
Mrs. McCARTHY of New York. Mr. Chairman, I thank the gentleman from
California (Mr. Lewis).
Mr. STOKES. Mr. Chairman, I yield 2 minutes to the gentleman from
Minnesota (Mr. Vento).
(Mr. VENTO asked and was given permission to revise and extend his
remarks.)
Mr. VENTO. Mr. Chairman, I want to, at the onset, recognize the
service of our distinguished colleague from Ohio (Mr. Stokes) who has
so ably led this subcommittee as initially chairman, first as a Member,
of course, and finally now as ranking member. I think that his steady
hand and intellect, keen intellect, and efforts have really done a
remarkable job in terms of trying to deal with some of the neediest in
our Nation. I am most familiar, of course, with his work on housing and
our mutual interest in homelessness and other issues.
But, Mr. Chairman, just speaking to the merits of this briefly, I
wanted to express my concerns about some of the fundamental problems
with the bill that we have before us. Regrettably, we have serious
problems, but it seems as though, notwithstanding positive revenue
projections that continue to buoy our economy, that none of the benefit
of that positive economy are translating into some of the essential
programs that we should have, and this bill even falls short of the
budget agreement that was written just last year with regards to some
of the agreements on environmental expenditures.
I am very concerned about the attacks on the environment and the
riders in this bill. I am concerned about the political game that is
going on with regards to providing zero funding for AmeriCorps. I am
concerned about the continued expenditure of billions of dollars on the
space station, notwithstanding the fact that commitments year after
year are not met. I am concerned about the fact that it is written in
such a way as to cause these problems. And the fact is, if this were
not enough, now we are going to pile onto this bill unrelated riders on
bills such as the abolishment of some of the public housing
responsibilities that the national government has committed to for the
past fifty years.
Therefore, I rise to express my concerns and point out some
fundamental problems in the VA-HUD Appropriations bill for FY 1999.
Once again, the Republican led Appropriations Committee has provided an
uneven product within sufficient resources to meet the needs identified
by the Administration, the Congress and the American people. This bill
has several serious flaws: it underfunds veterans medical care; attacks
our natural resources and environment; abandons the Administration's
AmeriCorps program and includes continued funding for a budget busting
international space station that will cost American taxpayers more than
$100 billion in the final form. In its current state as written, this
bill has ensured a collision course with the Senate, House Democrats
and the President, but the intended amendment and design crafted by the
rule will further warp the measure beyond reason, taking on more
controversy and a further blow to this measures unbalance.
The VA-HUD bill appropriates a total of $42.3 billion for VA programs
and benefits. Unfortunately, this bill underfunds veterans medical
care. The report language states that the Committee has provided an
increase for medical care to maintain the 1998 level. While technically
true at the amount level, this is accomplished only by reducing funding
for VA construction activities and projects by 20% less than current
funding levels. Discounting this artifice, the total amount provided
for veterans medical care is $276 million less than the 1998 level.
According to the Independent Budget issued by major veteran service
organizations, the Committee's recommendation is $525 million below the
1999 current service level, and nearly $1.8 billion below their
recommended 1999 funding amount.
The funding levels for the housing and community development programs
in the VA-HUD bill, are satisfactory compared to 1998. The bill
allocates $26.5 billion for HUD programs, an increase from FY 1998. The
measure increases funding for the McKinney Homeless Assistance Act
programs and with the inclusion of $100 million in new funds for
incremental vouchers. Frankly, given the tremendous need for housing
assistance that exists across this country, we could have used the
entire Administration's request in incremental, or new, section 8
assistance. Given the fact the we have not received incremental funding
for many years, however, this is a positive first step in recognizing
the severity of the need. This urgent need would argue for the
elimination of the provision in this measure which requires a three-
month delay in re-issuance of section 8 housing vouchers and
certificates. There is no public policy reason and only budget cost
scoring behind this 3 month delay provision. It hopefully will be
dropped before it becomes law and we will provide dollars without
shift.
I am also very supportive of the changes to the FHA loan limit an
authorization matter with little to do with the appropriation, no doubt
bouyed by the positive CBO scoring. Increases in the floor and the
ceiling of the FHA loan limit will make a more viable FHA program
because it will achieve market relevance. The increase in the ceiling
to 87% of the conforming loan limit will help middle income home buyers
in the high cost areas purchase homes. The 48% of the conforming loan
limit for the FHA floor is approximately what the level was in an
amendment I offered in the 1994 Housing Reauthorization bill. It's been
to long a wait for action on FHA modernization. These changes are
critically important to many, many areas of the country because the
current floor, which serves as the minimum has not been high enough to
cover the real costs of building a new home in most regions of the
nation for a long time. The bill also makes a positive change that
should help deal with disparities in limits in geographically
contiguous areas.
I strongly oppose the amendment that will be offered by Mr. Lazio to
this bill later today. His amendment would attach a reworked public
housing measure, H.R. 2, to the appropriations bill. This remains a
faulty policy and is potentially quite harmful to most communities.
Attachment to the appropriations bill is short-sighted simply and an
end run of a controversial bill around the process which could
potentially stall the important HUD appropriations bill for FY99. This
fundamental change being superimposed upon this bill should be
considered upon its merits rather than placed upon a must enact funding
measure.
In offering this amendment, and indeed protecting it under the rule
from points of order, this House majority will be disrupting ongoing,
bi-partisan negotiations to resolve major differences between H.R. 2
and its Senate counterpart, S. 462 attempting to gloss over legitimate
policy differences on income targeting, ``home rule'' deregulations,
minimum rents and other issues. While that process has not been in an
actual House/Senate Conference, as it well should be, at least there
have been ongoing discussions. This appropriations slam dunk will
completely undermine that process. I urge opposition to the Lazio
amendment, which will undercut the role of the authorizing committee
and which could effectively jeopardize, for no legitimate reason, the
progress being made by the positive HUD funding in this bill. I would
suggest that the inclusion of the public housing controversy into the
VA-HUD bill could be the last straw on the camel's back for many
members trying to decide whether to support this appropriations bill.
[[Page H5755]]
I also want to note that I have filed several amendments to the HUD-
VA bill. Two amendments would provide an additional $30 million to the
highly successful, yet consistently under funded Federal Emergency
Management Agency's (FEMA) Emergency Food and Shelter program. I don't
intend to offer both but intend to discuss one. The charities that work
in partnership with the FEMA program continue to be overloaded. Demand
for food and shelter is rising and the funding level of EFS has, to say
the least, not kept pace with the need.
The other amendment that I have filed would set in law a requirement
that owners who intend to prepay their mortgage on low-income
multifamily housing properties would have to provide one year notice to
the local jurisdictions and to the tenants of those buildings, whose
lives are being totally disrupted by such action. It is a reasonable
amendment and one I hope this body will see fit to accept.
I note that the Community Development Financial Institutions (CDFI)
fund has been allocated $80 million. I am working with my Chairwoman,
Mrs. Roukema, in the Banking Committee in the Financial Institutions
Subcommittee on reauthorizing this program. We are making improvements,
as the CDFI management has, in response to some of the concerns brought
out over the last year or so. I think we will have a stronger, more
viable CDFI as a result of those actions and that this program which
can have such a positive impact in communities, indeed justifies a
solid appropriation.
Disappointingly, this bill lacks adequate funding for much needed
environmental cleanup and natural resources conservation. Specifically,
$1.5 billion is included for the Environmental Protection Agency's
(EPA) Superfund program. This amount is $650 million below the budget
request and the level agreed to in last year's balanced budget
agreement. As a result, numerous contaminated toxic waste sites
throughout the country, including specific sites in my district in
Minnesota, will remain hazardous to people's health. In addition, the
popular and successful Brownfields program is reduced 18 percent below
the Administration's request. For the second straight year, the
Committee has limited the Brownfields program to assessments; no
funding is available for toxic waste site cleanup. According to a
report issued by the U.S. Conference of Mayors earlier this year:
``Cities participating in the study identified several major obstacles
to the redevelopment of Brownfields. Cities ranked the lack of clean up
funds as the number one impediment.'' This is certainly not the time to
turn our backs on cleaning up toxic waste in our local communities who
desperately need Federal assistance.
The Committee funded the Administration's Climate Change Technology
Initiative at $99 million. This amount is less than one-half of the
$205 million requested. Furthermore, the Leadership included vague
language that limits the use of funds regarding activities related to
the Kyoto Protocol on climate change. Specifically, this bill attempts
to prohibit the use of funds in the act to ``develop, propose, or issue
rules, regulations, decrees, or orders for the purpose of implementing,
or in contemplation of implementation, of the Kyoto Protocol. Under
existing statutory authorities, the EPA has ongoing activities to
develop and issue regulations that would be affected by the Kyoto
provisions. Proponents of the provisions argue that this language
prohibits the implementation of the Kyoto Protocol until ratification
of a treaty by the Senate. However, I disagree. These provisions could
well restrict the United States from playing a leadership role in the
reduction of greenhouse gas emissions as they at least undercut the EPA
moral leadership. Furthermore, the Committee report also balks at EPA's
efforts to promote educational outreach and further research on the
policies underlying the Kyoto Protocol until or unless the Protocol is
ratified by the Senate. This clearly illustrates that the congressional
leadership is indifferent to our environmental stewardship
responsibilities in this Nation.
As reported, the bill contains no funding for the Corporation for
National and Community Service, or AmeriCorps. This lack of language
will terminate the programs. This continued effort by the House
Republican Majority to eliminate the Administration's national service
program will ensure confrontation with the Senate, who supports the
program firmly, and the Administration. The Administration had made its
support of AmeriCorps abundantly clear. Despite this, the Republican
leaders once again have elected to support a charade of cutting or
eliminating AmeriCorps funds in the House knowing the conference
agreement with the Senate will restore them.
Furthermore, this bill appropriates $2.1 billion for continued
development of the international space station. According to some of
the most qualified scientists in America, the international space
station has little or no scientific value and the American people will
gain almost nothing except for the experience of wasting billions on
building a space station in orbit. Congress should not invest another
penny in this immensely overbudget and overdue program. This is money
that can be used to strengthen our National Parks, reinvest in our
children's education, provide adequate health care to our Nation's
veterans and restore pre-1995 rescission level funding for the Federal
Emergency Management Agency's (FEMA) Emergency Food and Shelter
Program.
Overall, this legislation meets some of the needs of our Nation's
veterans and makes a good first step in the right direction for low-
income housing programs. However, I agree with the Administration that
this legislation is highly flawed in its attacks upon environmental
cleanup, elimination of the successful AmeriCorps program and a budget
busting international space station. I urge all Members to vote no on
this measure.
Mr. LEWIS of California. Mr. Chairman, I have no additional requests
for time, so I reserve the balance of my time.
Mr. STOKES. Mr. Chairman, I yield 2 minutes to the gentleman from New
Jersey (Mr. Pascrell).
(Mr. PASCRELL asked and was given permission to revise and extend his
remarks.)
Mr. PASCRELL. Mr. Chairman, I want to commend both the gentleman from
California (Mr. Lewis) and the gentleman from Ohio (Mr. Stokes) for
putting together a very reasonable piece of legislation. However, I
have one concern which I want to bring to the floor.
The $16 billion upholstery manufacture industry will receive an early
Christmas present this year, Mr. Chairman. The industry is laughing its
way to the bank. Thousands of Americans might die in house fires. They
will be burnt to death because the industry spent thousands of dollars
lobbying against a national upholstery flammability standard. This
absolves the industry from responsibility and preventing their products
from literally going up in smoke.
Thirty-seven hundred people a year are killed by house fires. One
thousand of them are children, twice as likely to die in a fire than
adults. An additional 1,700 youngsters are injured due to residential
fires. This bill blocks the progress that the Consumer Product Safety
Commission has made in the development of an upholstered furniture
flammability standard. This provision not only delays the project but
is totally redundant, provides no further benefit to the American
public.
Upholstered furniture fires are the number one fire hazard in this
country, yet we are still waiting for flammability standards, and while
we wait over 25,000 men, women and children have died as a result of
burning furniture. The Consumer Product Safety Commission calculates
that an upholstery flammability standards will have an annual net
savings of $300 million. This $300 million will go directly to American
taxpayers because their local fire departments will not be called to
extinguish as many residential fires.
Prevention of fires is not just a noteworthy goal. Flammability
standards are attainable, they are cost effective, and they make sense.
We already require institutions such as hospitals and prisons to
purchase flame-retardant furniture. Are we saying that we are more
interested in protecting prisoners from upholstery fires than our
children?
Mr. STOKES. Mr. Chairman I yield 2 minutes to the gentleman from New
Jersey (Mr. Pallone).
Mr. PALLONE. Mr. Chairman, I thank our ranking member for all the
work he has done over so many years on important issues, particularly
on his pro-environmental stance.
Mr. Chairman, I rise today because of my concerns over the anti-
environmental riders in this bill. As in years past, the Republican
majority has once again inserted a number of anti-environmental riders
into the bill and its accompanying report. As I am sure we all
remember, similar efforts in years past came to no good, eventually
resulting in a government shutdown in 1995. Many of these provisions
are a waste of taxpayer dollars, calling for duplicative studies and
other wasteful delay tactics that will block the implementation of
important environmental protection measures, measures that the EPA has
determined are in the best interests of protecting human health and the
environment.
Just as an example, one provision prohibits the EPA from taking any
action to remove contaminated sediments from rivers, lakes and streams
[[Page H5756]]
until a new National Academy of Science study has been completed and
distributed and analyzed by all parties including Congress or, in other
words, indefinitely. The need for this new study is questionable since
the NAS just released a report last year entitled: Contaminated
Sediments in Ports and Waterways Clean-up Strategies and Technologies.
But the need to remove these contaminated sediments from America's
waterways is not in question. Nowhere more than in New Jersey are
people sensitive to the issue of contaminated sediments. In New Jersey
we have witnessed firsthand the impact that contaminated sediments can
have on our commercial and recreational fishing industries.
This remedial dredging rider, I should say this dredging rider, is
just one example of the numerous special interest riders in this bill.
Others include restrictions on brownfields funding, limitations on the
number of toxicological profiles that the Agency for Toxic Substances
and Disease Registry can perform, delaying reductions of hazardous
mercury emissions from utilities, lowering the bar for clean-ups of
NRC-licensed facilities, and the list goes on.
Mr. Chairman, my colleague, the gentleman from California (Mr.
Waxman) will be offering an amendment to eliminate the anti-
environmental riders later today, and I would urge my colleagues on a
bipartisan basis to support the Waxman amendment.
Mr. STOKES. Mr. Chairman, I yield 1 minute to the gentleman from Ohio
(Mr. Kucinich).
Mr. KUCINICH. Mr. Chairman, I thank the gentleman for yielding this
time to me, and I rise to support the appropriations made in this bill
for NASA.
This year marks the 40th anniversary of NASA. These 40 years have
been filled with remarkable achievements such as placing the first man
on the moon. Let me list for my colleagues only just a few of the spin-
offs that have been spawned by this program:
The engine powering the Boeing 777 uses a NASA design high bypass
turbo fan engine;
A laminar airflow technique used in NASA clean rooms for
contamination-free assembly of space equipment is used as an air
purification system;
NASA-developed micro-miniaturization is used in a pacemaker which can
be programmed from outside the body; and
NASA-developed solar technologies used to provide power through solar
energy.
NASA technology has also been developed to strip paint and also to
provide thermal protection from the shuttle solid rocket boosters.
Mr. Chairman, later there will be an amendment on the floor to cancel
the space station program. By cancelling the space station we would end
the benefits our society can gain from it.
Mr. LEWIS of California. Mr. Chairman, I yield 1 minute to the
gentleman from Kansas (Mr. Ryun) for purposes of a colloquy.
Mr. RYUN. Mr. Chairman, I recently received a letter from the mayor
of Topeka, Kansas, regarding a serious issue facing the city. According
to the mayor, during the floods that ravaged Topeka area in 1993 salt
from upstream rivers washed into the city's water infrastructure,
causing excessive rust in nearly a hundred miles of unlined cast iron
water pipe.
{time} 1015
This resulted in a severe ``red water'' and sediment problem for the
city. In some parts of the city, residents are unable to drink the
water, even to use their washing machines. Every human being needs
water daily in order to live. The people of Topeka, Kansas, need clean
water to live.
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. RYUN. I yield to the gentleman from California.
Mr. LEWIS of California. In our discussions, it has been my distinct
impression that the City of Topeka has taken steps to correct this
problem, is that correct?
Mr. RYUN. Yes, the city has replaced 20 miles of pipe at a cost of
$2.5 million, and has appropriated $5.1 million of city revenue this
year to replace another 40 miles. However, according to the mayor, this
is insufficient to complete the repairs, and the city is seeking
Federal assistance to replace the remaining 40 miles of pipe.
I understand that this is late in the legislative process. However,
in light of the urgency of the problem, I am exploring any legislative
options available. I would appreciate your assistance in providing
funds that we could use to improve this project.
Mr. LEWIS of California. We look forward to working with the
gentleman, and appreciate his concerns.
Mr. STOKES. Mr. Chairman, I am pleased to yield two minutes to the
gentleman from Michigan (Mr. Dingell) the distinguished ranking member
of the Committee on Commerce.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Mr. Chairman, I rise in strong support of the amendment
offered by the gentleman from Ohio (Mr. Stokes) and the distinguished
gentlewoman from Colorado (Ms. DeGette) on title 3 of the bill that
will strike language placing limitations on the brownfields program.
This is one of the most successful programs we have. It is a program
desperately needed by our cities.
A bipartisan report from the mayors of our cities say that
brownfields sites represent pockets of disinvestment, neglect, and
missed opportunities. They are often found in poorer communities and
neighborhoods that are desperately in need of economic investment and
job creation. The brownfields grant program protects human health by
helping to assess and remove environmental poisons from our
neighborhood, and, at the same time, encourages redevelopment of
abandoned or underutilized property. It also tends to halt urban
sprawl, something which is a massive problem.
The Nation's mayors recently surveyed their Members and found that
lack of cleanup funds is the number one impediment to brownfields
redevelopment. Yet the members of the majority party, by limiting
funding and prohibiting revolving loan funds, would go in exactly the
opposite and wrong direction. Limitations currently contained in this
bill would cripple one of the most successful urban programs we have.
I do not understand the hostility of my colleagues on the Republican
side, but let me cite what it is the Inspector General of EPA had to
say about this program.
He said, ``EPA has been instrumental in bringing together numerous
Federal agencies to work cooperatively towards removing barriers to the
redevelopment of brownfields. Our review showed that the cities have
been able to leverage millions in private brownfields investment. The
agency has accomplished a great deal in a relatively short time.''
One of the remarkable things is this amendment and the prohibition on
these expenditures would make a massive step backwards in terms of
local efforts in this area. It would even impinge in a very severe and
unfortunate way on the efforts of banks to increase lending in these
areas.
I urge the adoption of the amendment.
Mr. LEWIS of California. Mr. Chairman, I yield two minutes to the
gentleman from Illinois (Mr. Weller), for purposes of a colloquy.
Mr. WELLER. Mr. Chairman, I thank the gentleman for the opportunity
to engage in a colloquy with him.
As you know, there are over 13 hundred sites on the Superfund
National Priority List that are still in need of remediation. Of
course, we would like to see comprehensive Superfund reform enacted
this year that will help get these sites cleaned up faster. However,
today I wanted to specify to you about one site in particular and ask
that this site be given special priority by the Environmental
Protection Agency.
The City of Ottawa in my Congressional district is home to 14 NPL
sites contaminated with radioactive waste from factories that used
radium-based paints from 1918 to 1978 to make glow in the dark clock
dials. Ten of the sites have been remediated. However, due to the
complex nature of disposing of radioactive waste, the cost rose over
$30 million, and there are four large sites yet to be cleaned. The
remediation of the first ten sites involved shipping about 40,000 tons
of contaminated soil to Utah.
[[Page H5757]]
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. WELLER. I yield to the gentleman from California.
Mr. LEWIS of California. Mr. Weller, I understand that there is a
very high rate of cancer in areas surrounding these Superfund sites.
Mr. WELLER. This is true. According to a report prepared by the
Illinois Department of Public Health, certain areas surrounding Ottawa
Radiation Sites contain very high cancer rates. The study compared the
incidence of cancer rates with another city in northern Illinois, and
found that Ottawa has nearly 30 percent more cancer. The study also
indicated a concentration of those incidences along the north side of
the city, where the radiation sites are located.
Mr. LEWIS of California. Mr. Chairman, if the gentleman will yield
further, the picture the gentleman has drawn for me is most disturbing,
and I want you to know I will be urging the EPA to take this into
consideration and expedite the remediation of the remaining Ottawa
sites as soon as able possible, consistent with the agency's priority
listings.
Mr. WELLER. Mr. Chairman, reclaiming my time, I appreciate the
gentleman's concern, and, along with the residents of Ottawa, Illinois,
we can look forward to clean up being completed at these sites.
Mr. STOKES. Mr. Chairman, I am pleased to yield 1 minute to the
gentleman from New York (Mr. Manton).
(Mr. MANTON asked and was given permission to revise and extend his
remarks.)
Mr. MANTON. Mr. Chairman, I thank the gentleman for yielding me time.
Mr. Chairman, I rise to express my deep reservations about several
provisions of the bill before us, and, of particular concern, the
accompanying report language.
The provisions in question may have the result of significantly
weakening a number of important environmental programs. These so-called
environmental riders contained in the fiscal year 1999 VA-HUD
appropriations bill and report are ill-conceived and represent a
retreat from a sensible national environmental policy designated or
designed to keep our water safe, our air clean and breathable and our
lands free of toxic waste.
Mr. Chairman, these are unnecessary provisions which do a great
disservice to this House. At a time when our nation's economy is
booming with historically low levels of unemployment and inflation well
under control, we find ourselves back to fighting the same old battles
over how even the most reasonable of environmental protection measures
supposedly undermine our economy.
Well, I would say to my colleagues, this old song does not play true
any more. The budget is balanced, with a surplus envisioned for the
first time in a generation. The stock market is going through the roof,
and we have accomplished all this as a country with a strong Clean Air
Act, a strong Clean Water Act, and a strong Superfund program.
Mr. Chairman, I ask my colleagues who believe we need to weaken our
environmental programs: What is their justification for such drastic
steps? And, if they believe their cause is just, let us debate them in
an open and fair fashion, and not try to sneak through far-reaching
changes in funding bills and hidden in report language. Let us address
our differences through the normal legislative process.
You may be surprised to find that we might be in agreement on some
matters. Or, we may be able to develop reasonable compromise language
on others.
After all, the art of compromise has served our Nation well for over
two hundred years.
Mr. Chairman. One amendment which will seek to correct some of the
flaws in this legislation will be offered by my friend and colleague,
the gentlewoman from Colorado, Ms. DeGette. She will be joined in her
effort by the distinguished Ranking Member of the VA-HUD Subcommittee,
Mr. Stokes, and the gentleman from New Jersey, Mr. Frelinghuysen.
I believe this amendment deserves to receive wide, bipartisan
support.
Mr. Chairman. While we may differ on the advisability of pursuing any
one particular environmental policy over another, we should not
sacrifice the regular order in doing so.
If we have problems with the Superfund program, let us move forward
to develop a reasonable reauthorization which takes into account the
program as it stands today, not ten years ago.
And, if we are truly concerned about cleaning up old industrial sites
and revitalizing our cities, now is not the time to unnecessarily limit
funding or erect hurdles to the implementation of this successful
program.
Mr. LEWIS of California. Mr. Chairman, I yield two minutes to the
gentleman from Iowa (Mr. Latham) for a colloquy.
Mr. LATHAM. Mr. Chairman, as the chairman knows, my district in
northwest Iowa, like many areas throughout rural America, finds itself
underserved when it comes to health care. This is particularly true
concerning area veterans.
My district, which covers one-third of Iowa's geographic area, is
served by VISN No. 13 in Sioux Falls, South Dakota, and VISN No. 14 in
Omaha, Nebraska, and Des Moines, Iowa. Yet there are no VA medical
facilities in the district to serve area veterans. Therefore, most
veterans must travel anywhere from an hour-and-a-half to three hours
each way to find VA medical care.
The placement of a VA community-based outpatient clinic in Sioux City
and Fort Dodge would greatly increase the accessibility of VA health
care for my constituents. Would the chairman agree to work with me in
urging the VA to work towards this end?
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. LATHAM. I yield to the gentleman from California.
Mr. LEWIS of California. Mr. Chairman, I am very happy to work with
the gentleman from Iowa. I might mention to the gentleman that his
district and mine have this identical problem, for our territories
involves open spaces where people have to travel many, many miles for
this kind of service.
As the gentleman is aware, the VA's community-based outpatient
clinics were established expressly to address this problem and have
been a great success. Moreover, the decision to establish outpatient
clinics are made not in Washington, but at the VISN level with local
input to address regional and local veterans needs.
That being said, I would be happy to work with the gentleman in
communicating his very real concerns to the VA.
Mr. STOKES. Mr. Chairman, I yield 1\1/2\ minutes the gentlewoman from
Colorado (Ms. DeGette).
(Ms. DeGette asked and was given permission to revise and extend her
remarks.)
Ms. DeGETTE. Mr. Chairman, I rise in support today of the amendment
offered by the gentleman from Ohio (Mr. Stokes) and myself to strike
the anti-Brownfields environmental rider to this bill. This bill
jeopardizes the EPA's brownfields program which we heard the gentleman
from Michigan (Mr. Dingell) so eloquently refer to in three ways: First
of all, it prohibits any of these funds from being used by localities
to set up revolving loan programs. Secondly, this bill provides only
$75 million in funding, which is 17.4 percent below the President's
budget request. Finally, this bill prohibits the funds from being used
for research and community outreach, a vital component of the program,
which furthers understanding of brownfields and gives communities the
tools to further redevelopment.
Our amendment remediates these three problems with the bill. It
restores the important brownfields component of the legislation, which
is so critical towards cleaning up environmental contamination in our
inner-cities throughout this country and revitalizing these areas so
that they can be economically beneficial to the entire community.
Mr. Chairman, I thank the ranking member for working with me on this
amendment.
Mr. HOYER. Mr. Chairman, I rise today because I have some genuine
concerns about the funding levels of specific accounts within H.R.
4194, the Veterans Affairs and Housing and Urban Development and
Independent Agencies appropriations bill for fiscal year 1999. I
understand the difficulty that the chairman and the ranking member
faced in crafting this legislation within the tight fiscal constraints
[[Page H5758]]
that the Appropriations Committee had this year. However, I am
concerned that certain initiatives, which have been priorities of the
committee and the Congress in the past, will not receive the necessary
level of funding in fiscal year 1999.
First, the bill proposals a $59 million reduction to NASA's Earth
Science Program. This important program can help predict weather and
climate changes up to a year in advance, will yield tremendous benefits
for argricultural and natural resources productivity, will save money
and lives by allowing natural disasters to be predicted earlier, and
involves partnerships with Japan, the United Kingdom, Brazil, and
France. Goddard Space Flight Center, located in Greenbelt, Maryland, is
NASA's lead center for these efforts and has an extraordinary
reputation for Earth Science studies.
I have visited with the scientists working on this program and I can
tell you that their work is amazing. Funding for Earth Science will
produce both practical benefits and a long term understanding of the
environment. This reduction would be disruptive to the program at a
time when the need for programmatic flexibility is at its greatest due
to technical challenges in the development of various missions, and
could lead to either significant delays or even cancellation of project
elements.
I also want to express my concern about the bill's elimination of the
AmeriCorps National Service Program. AmeriCorps' members are estimated
to leverage an average of about 16 stipended volunteers per member.
AmeriCorps teaches its volunteers responsibility and opportunity. The
organization has also had a positive effect on traditional volunteer
activity. If we are going to make children and youth our top priority,
we need the assistance of volunteer service organizations such as
AmeriCorps. AmeriCorps plays an important role in advancing the goals
of the summit for America's future. We cannot fight to make the future
better for our nation's children without AmeriCorps' help.
Finally, the bill increases the limits on the sizes of home mortgage
loans that may be insured by the Federal Housing Administration (FHA)
under its single-family loan program. Raising these loan limits poses
little or no risk to the FHA fund. It is a fund with a value of about
$11 billion. Auditors give it a clean bill of health and say that loans
at the higher end pose less risk than do low balance loans. Raising the
FHA loan limit is critically important and will expand home ownership
opportunities to families all too often shut out of the conventional
mortgage markets--first time home buyers, minorities, families in inner
cities and rural families.
Mr. Chairman, as a member of the Appropriations Committee, I fully
understand the budget constraints which we are under, but I am
concerned that we are not properly funding the Nation's priorities in
this bill. I would hope that we can work towards remedying this
imbalance.
Mr. MARKEY. Mr. Chairman, I rise in strong opposition to the VA-HUD
and Independent Agencies Appropriations bill. This bill contains a wide
array of assaults against the public interest and good sense, which I
intend to discuss further during the course of the debate. I am rising
now, however, to talk about one particularly obnoxious provision of
this bill that affects the Consumer Products Safety Commission.
Under the version of the bill reported out of the Appropriations
Committee, a legislative rider was attached which would prevent the
CPSC from adopting a rule regarding flammability standards for
upholstered furniture until an outside panel was convened to examine
the toxicity of fire retardants that would be used to treat such
furniture. The Rule providing for consideration of this bill deleted
this rider with an equally objectionable self-executing provision which
made in order an amendment by the Gentleman from Mississippi (Mr.
Wicker).
This amendment was developed behind closed doors, without any
meaningful Democratic participation. No mention of the amendment was
made during the Rules Committee hearing on the bill, and the gentleman
from Mississippi did not even testify on his amendment. Instead, the
amendment appeared magically before the Members during the Rules
Committee markup. And under the Rule which the Rules Committee approved
and the House adopted earlier today, the amendment was attached to the
bill--notwithstanding the fact that it violates Clause 2 of Rule XXI of
the House Rules by legislating on an appropriations bill. Of course,
the Rule took care of that problem as well by granting the amendment a
waiver against all points of order.
In light of surreptitious origins of this amendment, and the great
haste with which it was adopted, is it any wonder that it contains
serious flaws? Earlier today, during consideration of the Rule for this
bill, we discovered that the authors of the amendment had mistakenly
appropriated $5 billion for the amendment's execution, when they had
actually intended to appropriate $5 million. By comparison, the entire
CPSC budget is only $46 million. The Republican Majority actually had
to offer a motion to correct the unintended financial windfall they
almost provided to the CPSC. Despite this correction, however, the
underlying amendment remains fatally flawed.
During House debate on the Rule, one of the supporters of this
amendment claimed that the proposal had the support of the Commerce
Committee. As the Ranking Democrat on the Commerce Committee's
Subcommittee on Telecommunications, Trade and Consumer Protection--
which has jurisdiction over the CPSC--I can assure the Members that
this was not the case. The Commerce Committee has never considered this
matter addressed by this amendment. We have never had a single hearing
on this subject. We have never heard a word from any of the affected
industries and reportedly pressed for adoption of this amendment. We
have never had a Committee or Subcommittee markup or cast a vote on
this matter. So, while the Chairman and some of the Members of the
Majority Side on the Commerce Committee may have agreed to this
language, it is not accurate to characterize this provision as having
had the support of the Commerce Committee.
So, let's just take a look at what the issue is that this amendment
addresses. Currently the CPSC is considering a flammability standard
for upholstered furniture. They are doing so pursuant to a petition
from the National Association of State Fire Marshals, who asked the
CPSC more than four years ago to develop a mandatory safety standard
for upholstered furniture to address the risk of fires started from
open flames--such as lighters, matches, and candles. The Fire Marshals
called for such a rule because the U.S. has one of the highest fire
death rates in the world. Nearly 4,000 people died in 1995 because of
fires that started in their homes, of which nearly 1,000 were children
under the age of 15.
Over the last four years the CPSC has been going through the process
of taking public comments, conducting laboratory tests, and evaluating
all the technical and economic issues relating to adoption of a safety
standard in this area, including requirements relating to use of flame
resistant chemicals to treat upholstered furniture. The CPSC staff has
been working with scientists from other agencies, such as the National
Institute of Environmental Health Sciences and the EPA to assure that
all of the significant public health and safety issues associated with
adoption of such a rule would be studied.
Now, the bill before us today contains a provision that would, in the
words of CPSC Chairwoman Ann Brown, ``completely halt work currently
underway . . . on a safety regulation to address the risk of fire from
upholstered furniture. According to Chairwoman Brown, ``more fire
deaths result from upholstered furniture than any other product under
the CPSC's jurisdiction.'' The proposed rules in this area could save
hundreds of lives and hundreds of millions in societal costs every
year, according to CPSC staff estimates. And yet, instead of allowing
the CPSC to proceed with its process, the legislative rider that has
been attached to this bill would add at least a year's delay by
requiring unnecessary and costly technical review and halting
Commission work.
This anti-consumer rider will add additional costs and delays to an
ongoing rulemaking process at the CPSC. It will micromanage the cost-
benefit analysis that the CPSC is already required to undertake before
it adopts a final rule. And it does so why? Well, according to last
Friday's Washington Post, this provision is in the bill to benefit the
narrow economic interest of a few upholstered furniture manufacturers
in Mississippi who are opposed to a mandatory furniture flammability
standard. As CPSC Chairwomen Brown has noted, the furniture industry's
``lobbyists are bringing the proper work of government to a halt.''
I think this is wrong. We should oppose this bill today and allow the
CPSC to move forward in conjunction with the EPA to adopt a
flammability standard for upholstered furniture that fully protects the
public from harm. The Clinton Administration has indicated in its
Statement of Administration policy that it is opposed to this provision
and warned that ``efforts to block the development of a new safety
standard represent a threat to public health.'' I agree, and I hope
that if this bill is approved the House, this provision will either be
deleted in conference or vetoed by the President. I urge a no vote on
the bill.
Mr. EVANS. Mr. Chairman, I rise today to express my support for the
VA-HUD Appropriations Act of 1999. Like the Administration's FY 1999
budget request, I do not believe this bill does enough to honor the
sacrifices our veterans have made for our country. However, I do
believe this bill is the best we can do for our veterans in this
Congress, which is why I will vote for the bill.
In a perfect world, veterans health care funding would be at higher
levels than provided for in this legislation. As health care
[[Page H5759]]
costs continue to rise, there is simply no way the VA can provide
consistently high quality care to veterans at the present funding
levels. An unfortunate result of such shortfalls has been to force VA's
specialized care programs to take a back seat to other spending
priorities. In the process, important veteran-oriented initiatives such
as spinal cord injury centers, blind rehabilitation programs and
programs for homeless and mentally ill veterans are not receiving the
emphasis they deserve within VA. We cannot allow VA's special program
and our commitment to our nation's veterans to unravel.
I also believe that funding levels for the VA Inspector General's
office should be sufficient to allow the IG to conduct more of its
extremely important work. At a minimum, the IG's budget should be
increased by $3.298 million over the House level to enable the IG to
perform critical follow up work in response to serious patient care
issues raised by veterans and VA employees during the past year. I am
pleased with Chairman Lewis' willingness to consider increased funding
levels for the VA Inspector General's office during conference wit the
other body, and I thank the Oversight Subcommittee Chairman, Terry
Everett, for working with me on a bi-partisan basis to pursue this
needed additional funding.
Despite its deficiencies, this legislation represents a modest
improvement over last year's appropriation. Given the short time left
in this congressional session, I believe we can ill afford to revert to
last year's funding levels as part of a continuing resolution in the
eleventh hour of this Congress. I urge members to support this bill
with the hope that the next Congress can do more to honor the
sacrifices made by our veterans.
Mr. LEWIS of California. Mr. Chairman, I have no further requests for
time, and I yield back the balance of my time.
The CHAIRMAN. All time for general debate has expired. Pursuant to
the rule, the amendment printed in House Report 105-628 is adopted and
the bill is considered read for amendment under the 5 minute rule.
Amendment number 12 printed in the Congressional Record may be
offered only by the gentleman from Iowa (Mr. Leach) or his designee,
shall be considered read, shall be considered for 40 minutes, equally
divided and controlled by the proponent and an opponent, shall not be
subject to amendment, and shall not be subject to a demand for division
of the question.
During consideration of the bill for amendment, the chair may accord
priority in recognition to a Member offering an amendment that he has
printed in the Congressional Record. Those amendments will be
considered read.
The chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, providing that the time for
voting on the first question shall be a minimum of 15 minutes.
The Clerk will read.
The Clerk read as follows:
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, 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, boards, commissions,
corporations and offices for the fiscal year ending September
30, 1999, and for other purposes, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
Mr. BROWN of California. Mr. Chairman, I move to strike the last
word.
(Mr. BROWN of California asked and was given permission to revise and
extend his remarks.)
Mr. BROWN of California. Mr. Chairman, I just want to offer a few
comments on the bill from the perspective of the authorizing committee
on which I serve, the Committee on Science. This bill, of course,
appropriates about $20 billion or more for programs within the purview
of that committee.
I am happy to say that I am rising here to praise and not to condemn
the work of the chairman and the ranking member, although there are
some difficult choices that had to be made in this bill.
Benjamin Franklin once observed that necessity never made a good
bargain, and yet it is necessity that drives the painful choices that
go into this most challenging appropriation bill.
Evaluating this bill is always difficult for me. I believe deeply
that this Nation has failed to do an adequate job of investing in our
future by letting funding levels for civilian science programs decline
over the last decade. Yet, this bill forces us to make painful trade-
offs among disparate deserving domestic programs.
In this one bill, we have to fund housing, support our veterans,
provide for emergency disaster relief and invest in our future at NASA,
the National Science Foundation and EPA. Worse, we have no objective
criteria for guiding us in waiving the respective benefits of spending
among these programs.
I believe there is insufficient funding to meet all our legitimate
civilian science needs, but I also know there are insufficient funds to
meet the other needs captured in this bill.
{time} 1030
Acknowledging this situation that our needs outpace our funds and
that we seem to lack either the creative vision or will to do anything
about that, I want to congratulate the chairman, the gentleman from
California (Mr. Lewis), and the ranking member of the subcommittee, my
good friend, the gentleman from Ohio (Mr. Stokes), for doing a good job
in a difficult year.
The funding levels for NASA, NSF and EPA are generally consistent
with the President's budget request, and given the pressures on the
subcommittee's allocation, that is a remarkable achievement. I have
some specific areas of concern or congratulations. I am particularly
pleased with the subcommittee action on funding the U.S.-Mexico Science
Foundation, funding certain research related to the Salton Sea, and
funding a number of FEMA programs which I think are critically
important.
However, with the limited time that I have this morning, I want to
draw the Members' attention just to two areas of concern. I am very
worried about the continuing decline in funding for NASA. Our space
agency is among the most efficient and best-managed agencies in the
Federal Government, and it has been among the leaders in reinventing
itself to do more with less. However, year after year, we ask NASA to
keep the Nation at the forefront of civilian aeronautics technologies,
satellite technologies, space exploration and space science, and year
after year we give them not quite enough money to actually carry out
those tasks.
Just as an example of the costs of underfunding NASA, I would point
to the Near Earth Object detection and cataloging effort at NASA. The
threat posed by Earth-orbit-crossing asteroids and comets has long been
a concern of mine and of the committee. The Committee on Science has
proposed augmenting funding for this important effort, and I am
gratified that the Committee on Appropriations has increased fiscal
year 1999 funding by $1.6 million. Nevertheless, I believe the Near
Earth Object detection program, the cost of which represents just a
fraction of the weekly receipts from current asteroid-disaster-themed
Hollywood movies, could be considerably increased.
This is an example of a good program that could be great for very
little additional money, and I hope we can do better for it coming out
of conference, and I know that the chairman of the subcommittee shares
my concern in that regard.
I might note that I saw the current asteroid disaster movie last
Sunday, and it is going to stimulate a lot of public concern about
whether Congress should be doing something about this important
problem.
I am also distressed about language in the bill and report relating
to EPA and the Kyoto Protocols. The gentleman from Ohio (Mr. Stokes)
and others have commented on this matter. As presented to the House,
the bill would place such sweeping limits so EPA that basically we are
legislating their thought processes. We also appear to be barring
useful work that predates Kyoto, and we would undermine efforts to
improve public health. I will be supporting a series of amendments
offered by my friend, the gentleman from California (Mr. Waxman) that
would attempt to mitigate the excesses on the current language on this
issue.
I look forward to continuing a very productive relationship with the
chairman and ranking member of the subcommittee as we move toward
conference, and I would be happy to provide any services I can to help
them in their important work.
Mr. TIAHRT. Mr. Chairman, I move to strike the last word.
[[Page H5760]]
Mr. Chairman, I have 2 amendments at the desk, but I do not intend to
offer them today. Both amendments were designed to earmark money for
Federal research and treatment for the Gulf War illness.
Now, in 1991, about 700,000 American men and women served in the Gulf
War. All of us appreciate their courage and their service and thank
each and every one of them. More than 228,000 of these veterans have
sought medical care. Over 100,000 of them have indicated they may be
suffering from Gulf War illness. Their symptoms include sleeplessness,
chronic diarrhea, nausea, memory loss, miscarriages, and even birth
defects of their newborn children.
Some veterans' organizations have estimated that several thousand of
our soldiers have died, and their deaths, in some part, are related to
their service in the Gulf War.
This is a very real problem, but the Department of Defense and the
Veterans Administration have been very reluctant to acknowledge this
problem. At first the Department of Defense said that this was not a
problem. Then they told us it was stress-related. It was only until the
last few years that the Department of Defense and the Veterans
Administration have begun to search for solutions for those who are
suffering from these diseases or illnesses that veterans are living
with every day of their lives.
In February of this year, in a report by the Government Accounting
Office, the GAO, it was stated, ``Our government was not proactive in
researching Gulf War illness.''
As a government, we sat on our hands, and this was wrong. Now there
is research in the Department of Defense; however, I am convinced that
this research is not about the veterans; it is more about protecting
soldiers in future conflicts, and I see no fault in it. I think that is
very good research, but that places the burden on the Veterans
Administration.
Mr. Chairman, I have a great deal of respect for the gentleman from
California (Mr. Lewis), the distinguished chairman of the Subcommittee
on VA, HUD and Independent Agencies, and I want to encourage Mr. Lewis
to pursue language that would emphasize to the Veterans Administration
the high priority of research and treatment of Gulf War illness.
Let me close by quoting from the February 1998 GAO report. They said
in the report, ``The vast majority of research was not initiated until
1994 or later, and much of that was due to pressure by legislative
requirements. These requirements were imposed by us here in Congress.
Establishing Gulf War research and treatment as a high priority is the
right thing to do, and that is why I make this request.''
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. TIAHRT. I yield to the gentleman from California.
Mr. LEWIS of California. Mr. Chairman, I must say to the body that
our colleague, the gentleman from Kansas (Mr. Tiahrt) has played a very
significant role in dealing with this problem, for there is money in
the pipeline now pushing forward that research on the part of the
Veterans Administration that is taking place as a direct result of his
own work with our committee as well as the entire Congress. I very much
appreciate that, and we intend to continue to work with the gentleman,
and as we go to conference, I want to make sure that there is emphasis
one more time.
Mr. TIAHRT. Mr. Chairman, reclaiming my time, I thank the
subcommittee chairman, the gentleman from California (Mr. Lewis), and I
appreciate his efforts. He has been instrumental in putting this
pressure on to make sure that we maintain this high priority.
Mr. ROEMER. Mr. Chairman, I move to strike the last word.
Mr. Chairman, first of all, I want to rise in my admiration for the
chairman of the subcommittee who has some of the quickest wit and
sparkling sense of humor of any Member in the body. While we agree on
many things, including working together on providing quality homes for
people in this country and manufactured housing, we disagree on the
funding for the space station, where I will offer an amendment later
today to strike the funding for the space station; not the space
program, but the space station. That disagreement does not diminish my
respect for our chairman, the gentleman from California (Mr. Lewis).
I also have a great deal of respect for a Member from Ohio that is
retiring and serving in his last year in this body, who has served not
only this body and this institution, but has been a champion for the
people in many big cities that have a very difficult time getting their
fair share of the budget, getting their fair share of rights, getting
their fair share of opportunities.
The gentleman from Ohio (Mr. Stokes) comes from a family of public
servants. His brother served for many, many years not only as a mayor,
not only as a member of the Ohio community, but served this country so
ably, and the gentleman has followed in those footsteps and exceeded
those footsteps, I think. So I want to thank him and associate myself
with the many tributes that will take place to him.
The gentleman from Michigan (Mr. Camp), a Republican, and I will
offer an amendment later today to strike the funding for the space
station, and we will do it, or I will do it for two reasons. One is
because of the lack of merit in the space station itself as a program.
It has not performed up to the capabilities that it should have;
secondly, because we have such a difficult time now under a balanced
budget agreement allocating the resources in a fair and just manner.
De Tocqueville said many years ago, ``America is a great country
because America is a good country. It will cease to be great when it
ceases to be good.'' I think that quote is very appropriate here today.
If we do not allocate the resources in a fair, just and good manner to
all in society, then we cease to be a great country.
Now, what about the merits of the space station? First of all, I
support roughly the $11 billion to $12 billion in the NASA budget, but
the $2.1 billion for the space station is not a good expenditure for
science, it is not a good expenditure for NASA, and it is not a fair
expenditure to the rest of the budget.
Right here, according to this graph, and I think the General
Accounting Office put this out in their latest study, we will spend $98
billion over the course of building, developing, researching and
maintaining the space station.
Now, we have spent about $20 billion so far, so my colleagues that
say, well, we have already spent $20 billion, we will now throw another
$80 billion toward this project, I want my colleagues to be very aware
of that under the budgetary environment that we face. We have spent $20
billion on research and development; we will spend another $80 billion
in the total cost of this.
Now, that is according to the General Accounting Office, and that is
if everything goes perfectly. We just had a private sector report, the
Cost Assessment and Validation Task Force, that now says that we
probably will have cost overruns on the space station of $120 million
to $250 million every single month. The $98 billion cost estimate is if
everything goes perfectly from now on.
Well, we know it is not going perfectly. The prime contractor is
having problems; we have just announced $5 billion in cost overruns,
the Russians are not coming through with their fair share of
expenditures, we are picking up the tab as taxpayers and transferring
money out of NASA to the Russian account to pay for their services. So
now the Chabrow report, with their estimation, is saying that, in fact,
the space station that was supposed to be completed in 1994 may not be
done until somewhere around 2005 or 2006 or 2007. And the development
cost is going to be $24 billion instead of $17 billion.
So I think the gentleman from Michigan (Mr. Camp) and other
supporters of cancelling the space station, not the space program, but
the space station program, will have this debate later today, and I
urge Members' support.
The CHAIRMAN. The Clerk will read.
The Clerk read as follows:
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.
[[Page H5761]]
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); $21,857,058,000, to remain available until
expended: Provided, That not to exceed $24,534,000 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.
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,
$1,175,000,000, 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, $46,450,000, 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
1999, 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 1999 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, $159,121,000, 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, $206,000, 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, $55,000, 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 $2,401,000.
In addition, for administrative expenses necessary to carry
out the direct loan program, $400,000, 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 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,
$846,000,000 is for the equipment and land and structures
object classifications only, which amount shall not become
available for obligation until August 1, 1999, and shall
remain available until September 30, 2000: Provided further,
That of the funds made available under this heading,
$6,000,000 is for the Musculoskeletal Disease Center, which
amount shall remain available for obligation until expended:
Provided further, That of the funds made available under this
heading, not to exceed $22,633,000 may be transferred to and
merged with the appropriation for ``General operating
expenses''.
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,
2000, $310,000,000, 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; $60,000,000, 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;
$855,661,000: Provided, That funds under this heading shall
be available to administer the Service Members Occupational
Conversion and Training Act.
national cemetery system
(including transfer of funds)
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 six passenger
motor vehicles for use in cemeterial operations; and hire of
passenger motor vehicles, $92,006,000: Provided, That of the
amount made available under this heading, not to exceed
$86,000 may be transferred to and merged with the
appropriation for ``General operating expenses''.
[[Page H5762]]
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as
amended, $32,702,000.
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 38 U.S.C., 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, $143,000,000, to remain available until
expended: Provided, 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 1999, for each approved project
shall be obligated: (1) by the awarding of a construction
documents contract by September 30, 1999; and (2) by the
awarding of a construction contract by September 30, 2000:
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 38 U.S.C., 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 veterans 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 1999 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 1999 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 1999 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 1998.
Sec. 106. Appropriations accounts available to the
Department of Veterans Affairs for fiscal year 1999 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 1999, 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 from the surplus
earnings accumulated in an insurance program in fiscal year
1999, 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 1999, 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. In accordance with section 1557 of title 31,
United States Code, the following obligated balances shall be
exempt from subchapter IV of chapter 15 of such title and
shall remain available for expenditure without fiscal year
limitation: (1) funds obligated by the Department of Veterans
Affairs for lease numbers 084B-05-94, 084B-07-94, and 084B-
027-94 from funds made available in the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1994 (Public Law
103-124) under the heading ``Medical care''; and (2) funds
obligated by the Department of Veterans Affairs for lease
number 084B-002-96 from funds made available in the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1995 (Public Law 103-327) under the heading ``Medical care''.
Sec. 109. (a) The Department of Veterans Affairs medical
center in Salisbury, North Carolina, is hereby designated as
the ``W.G. (Bill) Hefner Salisbury Department of Veterans
Affairs Medical Center''. Any reference to such center in any
law, regulation, map, document, record or other paper of the
United States shall be considered to be a reference to the
``W.G. (Bill) Hefner Salisbury Department of Veterans Affairs
Medical Center''.
(b) Effective Date.--The provisions of subsection (a) are
effective on the latter of the first day of the 106th
Congress or January 3, 1999.
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,
$10,240,542,030, to remain available until expended:
Provided, That of the total amount provided under this
heading, $9,600,000,000 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 1999: Provided further,
That of the total amount provided under this heading,
$97,000,000 shall be for amendments to section 8 contracts
other than contracts for projects developed under section 202
of the
[[Page H5763]]
Housing Act of 1959, as amended: Provided further, That of
the total amount provided under this heading, $433,542,030
shall be for section 8 rental assistance under the United
States Housing Act of 1937 including assistance to relocate
residents of properties: (1) that are owned by the Secretary
and being disposed of; or (2) that are discontinuing section
8 project-based assistance; for relocation and replacement
housing for units that are demolished or disposed of from the
public housing inventory (in addition to amounts that may be
available for such purposes under this and other headings);
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 of the total amount provided under this
heading, $10,000,000 shall be for Regional Opportunity
Counseling: Provided further, That all balances, as of
September 30, 1998, remaining in the ``Prevention of Resident
Displacement'' account shall be transferred to and merged
with the amounts provided for those purposes under this
heading.
{time} 1045
Amendments Numbered 18 Offered by Mr. Stokes
Mr. STOKES. Mr. Chairman, I offer amendment No. 18, which I offer on
behalf of myself and the gentleman from Massachusetts (Mr. Kennedy),
and I ask unanimous consent that it be considered en bloc.
The CHAIRMAN. Is there objection to the request of the gentleman from
Ohio?
There was no objection.
The CHAIRMAN. The Clerk will designate the amendments.
The text of the amendments is as follows:
Amendments numbered 18 offered by Mr. Stokes:
Page 18, line 14, after the dollar amount, insert the
following: ``(reduced by $97,000,000)''.
Page 20, line 22, after the dollar amount, insert the
following: ``(increased by $97,000,000)''.
Mr. STOKES. Mr. Chairman, the purpose of the amendment that I am
offering, along with my friend, the gentleman from Massachusetts (Mr.
Kennedy) from the authorizing committee, is to provide additional
Section 8 housing assistance vouchers targeted specifically to helping
low income families make the transition from welfare to work.
The bill, as reported, provides $100 million for this purpose, and
our amendment adds another $97 million. This will increase the number
of new housing assistance vouchers provided for the bill from 17,600 to
34,800. This is still a bit short of the 50,000 new vouchers requested
by the administration, but it is at least a good start.
The budgetary offset for the increase comes from $97 million that the
bill appropriates for so-called Section 8 amendments, the term which
HUD uses to refer to the process of adding funds to existing Section 8
housing assistance contracts that are running short.
The latest data from HUD and the GAO indicates that this $97 million
would not be needed for Section 8 amendments in fiscal year 1999, as
they have sufficient money on hand from other sources. Accordingly,
what our amendment does is simply shift this $97 million within the
Section 8 program and use it instead for welfare-to-work vouchers.
The context for our amendment is the very real crisis in affordable
housing that is facing all too many people in this country. According
to the latest statistics, there are 5.3 million low income households
with what the experts call worst-case housing needs. These are people
with incomes below 50 percent of the local median who receive no
Federal housing assistance and who either pay more than half their
income for rent or live in severely substandard housing.
This is not just an intercity housing problem. One-third of these 5.3
million households with worst-case needs live in the suburbs. It is not
just a problem for people who do not have jobs. Indeed, the latest
growth in worst-case housing needs has been among working families. The
fact is, there is just not enough affordable housing to go around for
people who earn low wages.
Despite the tremendous need, the Federal Government has been stepping
back from its traditional role in helping to provide affordable
housing. We are actually losing public housing units, not gaining. And
there has not been funding since 1995 to expand the number of families
helped by the Section 8 program, which is a program that provides
financial assistance to help people rent housing on the private market.
The committee's bill takes a small step towards reversing this trend
by providing funds for 17,800 new Section 8 housing vouchers, and our
amendment makes that small step a little bigger by raising the number
of new vouchers to 34,600.
Further, like the bill, our amendment targets those new housing
vouchers to meeting a very high-priority need, helping people make the
transition from welfare to work. Currently, about two-thirds of new
jobs are being created in the suburbs, but three of every four welfare
recipients live in central cities or rural areas. The basic purpose of
the program, expanded by our amendment, is to help eliminate housing
needs as an obstacle to getting and keeping jobs.
For example, families would be able to use the vouchers to move to
areas where more job opportunities exist or to reduce excessively long
and expensive commutes. The additional vouchers would be awarded on a
competitive basis to local housing authorities. In other words, the
vouchers would go to the localities who put together the best programs
for using them, and HUD will be required to implement a system for
tracking the use of these vouchers in evaluating the program's
performance and in furthering the welfare-to-work objective.
In short, Mr. Chairman, our amendment provides a modest increase in a
vital and well-structured program. I urge a yes vote on this Stokes
Kennedy amendment.
Mr. LEWIS of California. Mr. Chairman, reluctantly, I rise in
opposition to the amendment of my colleague.
Mr. Chairman, I believe the body knows that we have not had any
significant funding for this program since 1995. The reason for that is
that the voucher program essentially has been in serious disarray. It
has not delivered service or money in a way that really made sense to
those of us who know that we have challenges here in terms of serving
poor people, but at the same time, as we try to meet those challenges,
we would like to have the programs involved to work effectively.
This current year is the first year for some time we have provided
significant dollars. There is some $100 million in the current fiscal
year. That involves some 17,600 vouchers.
We are really taking a hard look at the way HUD is implementing this
program. We want to measure whether or not they will get the job done
this time. What this amendment suggests is that before that measurement
actually takes place we ought to kind of double the program. We would
go from 17,600 vouchers to 34,800. We would go from $100 million to
$197 million.
Now while I have a good deal of empathy for what we are attempting to
do here, frankly, I think we ought to deal as much as we can in the
real world. The other body is more skeptical than we. They are
providing some $40 million in their proposal this year, frankly, in no
small part because they have
[[Page H5764]]
some of those questions from the past still remaining.
So I would urge the body to realize that we have only got so many
dollars to go around. We ought to be conservative in connection with
this in the most positive way. We want to make sure the dollars that
are a part of the bill for serving people are being used well, and so
let us go one step at a time here.
With that reservation in mind, thereby, I urge the body to vote no on
this amendment.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I move to strike the last
word.
Mr. Chairman, I rise in strong support of the Stokes-Kennedy
amendment. I also want to just take this opportunity to thank the
gentleman from California (Mr. Lewis) and the gentleman from Ohio (Mr.
Stokes) for their hard work on looking out for the housing needs of our
country.
Both of these gentlemen have worked together since I have been in the
Congress in a way that has been, I think, very admirable.
I want to just say, as I look upon a fellow who was chairman of this
subcommittee for many, many years and who is perhaps offering, if the
chairman of the committee could just listen for 1 quick second here, it
is perhaps the last housing amendment of the gentleman from Ohio (Mr.
Stokes) that we are dealing with here. I know of the close relationship
that the gentleman from California (Mr. Lewis) and the gentleman from
Ohio (Mr. Stokes) have. I would hope that maybe the opposition of the
gentleman from California (Mr. Lewis), while having been voiced, will
not be too strong.
Mr. LEWIS of California. Mr. Chairman, will the gentleman yield?
Mr. KENNEDY of Massachusetts. I yield to the gentleman from
California.
Mr. LEWIS of California. Mr. Chairman, the gentleman is attempting to
soften my heart relative to my colleague here. I would prefer that he
come back just a little later when we will discuss this matter much
more extensively.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I would be happy. We will
be back later on when another amendment comes up.
But the fact is that this is an amendment that is important, and it
is important for us to recognize the tremendous housing needs of this
country. Of the 15 million families that are eligible for housing
assistance in America today, only 3 million of them get it. That means
there are 12 million families, almost 40 million people that are
walking around our country, many of whom are living in cars, many of
whom are living in shelters, that have no place to go.
Nobody is going to defend every housing program or every voucher
program. But the truth of the matter is that when we look at the severe
housing needs and the severe housing shortages of this country, it is a
crying shame. Over 5 million families, almost 15 million people in our
country today have what are determined to be severe housing shortages.
They are paying over 50 percent of their income in rent and living in
inadequate housing.
This voucher program is different than public housing. This voucher
program is different than the project-based housing program. This is a
voucher which you can take to any part of our country, take to any home
in America and be able to rent an apartment. It is a program that
works.
There is money in this bill, make no mistake about it. There is a gap
in the funding levels of this bill that allows us to pay for this
program. And when we look at the tremendous shortages of so many of our
families, we have put a very tough welfare bill in place.
If we talk to the mayor of Philadelphia, he will tell us that with
the lowering of the unemployment rate, the fact of the matter is, he
has to find 47,000 new jobs for welfare recipients in the next several
months. We have got to find over 2,000 jobs a week in the city of
Boston. The mayor of Chicago will tell us he has got to find 164,000
jobs between now and December. The jobs simply do not exist.
If we take away the welfare benefit and we do not even provide
housing, what we will be doing is sending people into homeless
shelters. The homeless shelters that I have visited are at new records
of participation. More and more people, in the midst of summer, at a
time when traditionally people do not use homeless shelters, they are
now full to the brim.
This is a crisis in America. Certainly we can study problems, but
there is money in this appropriations bill that can be used to assist
100,000 more children, 100,000 more kids who are in trouble in America,
who need a place to have and call a home, who need a shelter in their
lives, who need a place that they can feel provides them respite from
all of the ills that the rest of the world is foisting upon them.
I ask Members to reach into their conscience and to support this
legislation. There is money to be able to spend on this bill and to get
it done within the budgetary constraints within which the committee has
found itself.
I believe that if we look at the housing shortage, if we look at a
well-run housing program, there is not a better-run housing program
than the voucher program. This voucher program is designed to get
people from welfare to work and to give them some housing needs as that
occurs. Please support this amendment.
The gentleman from Ohio (Mr. Stokes) has asked for this support. I
ask for this support. I think if we get it, the gentleman from
California (Mr. Lewis) will end up going along with it.
The CHAIRMAN. The question is on the amendments offered by the
gentleman from Ohio (Mr. Stokes).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 501, further proceedings
on the amendments offered by the gentleman from Ohio (Mr. Stokes) will
be postponed.
Mrs. LINDA SMITH of Washington. Mr. Chairman, I move to strike the
last word.
Mr. Chairman, when I came to the floor today, I had originally
intended to introduce an amendment to this bill, but it is becoming
very clear that there is great opposition from the leadership of
Congress.
{time} 1100
And it was ruled out of order in the Committee on Rules because
leadership did not want this debate. I do not think it is a debate,
however, that we should shirk from.
What the debate is about is just a few weeks ago, and then confirmed
in the last week, we decided that we would take a big cut in veterans'
health care because there was a big transportation budget coming down
the tracks that needed more money. So on the end of the transportation
bill, and then confirmed again at the end of the IRS bill, in the last
few days, few hours, we said if a veteran ever started smoking while
they were in the military, we would break our commitment to them to
give them health care later in life, in their later years.
For far too long veterans have been given table scraps in Congress
while we pass pork barrel bills of things not nearly as important, not
nearly as honorable as funding veterans' health care or the benefits we
promised. I think some Members need to think, as they look at this bill
today before final passage, about what we told veterans when we went
home on the Fourth of July. Many members were approached by a veteran
at one of the celebrations of our freedom or one of the memorials of
those lost in war or those wounded in war that we all went to, and at
those we would have a veteran approach us and say, ``It was so terrible
to read that veterans had a big health care cut. What will you do about
it?''
And without exception, or very few I am sure, the Member of Congress
would say, ``Well, it was a part of a bigger bill. The bigger bill was
so important that we just had to vote for this veterans' health care
cut. But when we go back, if we get a chance, we will fix this. Because
it is really not very fair, is it?'' And we would apologize and then
come back to Congress and, at the end of another bill, the IRS reform
bill, right at the last minute, they found out the veterans' cuts were
not done right in the transportation bill.
See, when we do things at the last minute, in a kind of way that is
not aboveboard, that cannot be debated, we hang it on another bill.
Sometimes it
[[Page H5765]]
does not get done very clean. And so what happens is the language was
so messy, and, by the way, the President proposed the original
language, so this is a bipartisan problem, that they had to bring it
back up and put it on the IRS reform bill. It is called a must-pass
bill. And we are told we are going to get in deep trouble if we do not
vote for the IRS reform bill. So guess what? We will put it on this
bill. Nothing related to veterans' health care, but they did have to
reconfirm the writing and the drafting. So they put it on a must-pass
bill.
Today, we have a third chance to keep our word. This is the veterans'
bill. It is not just any other bill that we are hanging something on.
This bill can say we made a mistake, and I am going to keep my word. If
we vote for this bill, we are confirming the cut, $15 billion over 5
years.
Now, the health care portion of the V.A. budget is $17 billion a year
for veterans. If we take this much money out, it is a real reduction;
or, if it is not a reduction, where are we going to get the money? Are
we going to take it out of housing? Are we going to go to veterans'
outreach? Where will it come from? Where will it come from?
One thing we know is the veterans' population is increasing. And
those about my age are the Vietnam vets. And guess what? They are
getting to where things hurt. And the things we could have worked
through in our 20's and 30's we cannot now necessarily do that. So they
are needing to come forward and saying to us, ``I need you to keep your
commitment to me; the one that you made when I served the country; the
one that you made when I went back in and the recruiter said give us 2
more years. If you just come 2 more years, you will get health care.''
And what are we saying to them? We are saying to them, no, we are not
going to honor that commitment ever.
When veterans got their S.P.'s in Vietnam, they got cigarettes. In
the Second World War and Korea, when they were issued their provisions,
they were given cigarettes. They were encouraged to smoke to release
the tension. But if they did that, we are going to tell them now that
we are going to break our word to them.
What I tell my colleagues is that this is the time you can keep our
word to veterans. Every major veterans' group in the Nation came
forward, from the littlest group to the Vietnam veterans. The Vietnam
veterans are even calling our offices saying do not vote for this bill.
If we are going to do the honorable thing, this is the only train this
year that we can correct and put back on track. Do not vote for this
bill.
The CHAIRMAN. The time of the gentlewoman from Washington (Mrs. Linda
Smith) has expired.
(On request of Mr. Obey, and by unanimous consent, Mrs. Linda Smith
of Washington was allowed to proceed for 1 additional minute.)
Mr. OBEY. Mr. Chairman, will the gentlewoman yield?
Mrs. LINDA SMITH of Washington. I yield to the gentleman from
Wisconsin.
Mr. OBEY. Mr. Chairman, I simply want to say that I agree with the
gentlewoman's observations, and that is one of the reasons that I think
Members ought to vote against this bill.
Again, it is not because of anything that has been done by the
subcommittee, but because of what has been done by this institution
previously that has put this subcommittee in this box today. And I do
not think we ought to be ratifying those decisions.
Mrs. LINDA SMITH of Washington. Reclaiming my time, Mr. Chairman, in
conclusion, I think this is a hard issue for a lot of people. It is
hard to know how to keep our commitment. But one thing we can be sure
of, if we take $15 billion out of veterans' health care over 5 years,
and the VA health care budget is only $17 billion a year, we cannot
keep our commitment.
This is a Democrat-Republican problem. The President started it. He
even recommended we do it. They got to the days of the transportation
budget and just did not have enough money for all those roads that go
nowhere. So, all of a sudden, both parties and the President made a
decision that veterans do not have a loud enough voice.
Today, let us think about the veterans. Let us say it is not
honorable to go forward with this and let us take it back, fix it, and
bring it forward. There is a lot of good things and a lot of good
effort in this bill, but let us defeat it, bring it back next week, and
take the veterans' health care cut out of it.
Mr. Chairman, I am submitting for the Record an urgent appeal from
the Vietnam Veterans of America regarding this bill.
Vietnam Veterans of America, Inc.,
Washington, DC, July 15, 1998.
urgent appeal to all u.s. representatives
Don't break your promise to veterans again.
You hurt veterans twice already this year with majority
votes in the House and Senate to loot $15 plus billion from
disabled veterans and their widows and orphans for pork
barrel projects in the transportation bill. Then just last
week you dishonored veterans again by voting to finalize the
transfer of funds for transportation in the IRS Reform bill.
Most if not all of you promised when you marched in
Independence Day parades with your veterans this July 4th
that you would correct this immoral act and restore the
dollars taken for disabled veterans health care and benefits.
Well, you have a third chance now, vote no on final passage
of H.R. 4194, the VA/HUD Fiscal Year 1999 appropriations
bill. Representative Linda Smith tried to keep your promises
to veterans, but was denied even a chance to vote to restore
funds for veterans in this bill.
A vote for the VA-HUD bill is a vote against veterans. Vote
no on final passage.
Amendment No. 23 Offered by Ms. Jackson-Lee of Texas
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer amendment No. 23.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 23 offered by Ms. Jackson-Lee of Texas:
Page 17, line 25, insert ``(increased by $183,000,000)''
after ``$10,250,542,030''.
Page 20, line 22, insert ``(increased by $183,000,000)''
after ``$100,000,000''.
Page 24, line 2, insert ``(decreased by $183,000,000)''
after ``$3,000,000,000''.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I ask unanimous consent that
the amendment be considered en bloc?
The CHAIRMAN. Is there objection to the request of the gentlewoman
from Texas?
Mr. LEWIS of California. Mr. Chairman, I must reserve a point of
order against the amendment because it would increase the level of
budget authority outlays in the bill in violation of clause 2 of rule
XXI.
This rule states that it shall be in order to consider en bloc
amendments proposed only to transfer appropriations among objects in
the bill without increasing the levels of budget authority or outlays
in the bill. The amendment would increase the level of budget authority
outlays in the bill and, therefore, I make a point of order.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I would say to the chairman
that I intend to withdraw this amendment and would like to support the
Kennedy-Stokes amendment.
The CHAIRMAN. The Chair understands the gentleman from California to
be reservng a point of order.
Ms. JACKSON-LEE of Texas. It is difficult in this process to, in many
instances, help our constituents who are in great need because of the
various procedures that are necessary. And I do realize that in the
order of the House these are important, but since my main concern is to
ensure that those who need public housing and affordable housing in
America are taken care of, I offered an amendment that would have added
more monies to the Section 8 incremental assistance restoration
program.
That program provides the opportunity for families whose incomes do
not meet the Section 8 standards. Section 8 certificates allow for
housing throughout the community and for it to be integrated in the
community separate and apart from public housing. My interest is to
ensure that those particular families have a greater opportunity.
In fact, under the current version of the bill, only 14,000 new
families will be able to receive incremental assistance under Section
8, and that is 36,000 families short of the administration's proposals.
In dollars and cents terms, there is a difference of $183 million
between H.R. 4194 and the administration's request.
I am delighted, however, to do two things this morning: One, to pay
tribute to the gentleman from Ohio (Mr. Louis Stokes) for his long and
dedicated service in this area of public
[[Page h5766]]
housing and service to veterans. The gentleman from Ohio has chaired
and been the ranking member of this subcommittee for many, many years,
and I appreciate his dedication to the spirit and the intent of my
amendment, which is to find families who are struggling in America.
In particular, my district in Houston, the City of Houston, was cited
as one of the cities with the lowest number of affordable housing
units. We are desperately in need of housing families who struggle
every day. With that in mind, I have viewed Section 8 housing as a very
important mechanism for families looking to solidify their futures.
I would offer to withdraw my amendment and support the Kennedy-Stokes
amendment, which answers the question of providing vouchers to low-
income families living in housing owned by private landlords. Each of
these families in the program, the vouchers pay the difference between
the fair market value of their accommodations and 30 percent of their
income. Therefore, this program not only ensures that private landlords
get their fair share in rental income, but it also phases out the
federal assistance as a qualifying family's income rises. Section 8
vouchers and certificates are vitally important to the minority
community. The latest figures indicate that well over half of all
Section 8 assistance goes to African American and Hispanic families.
Mr. Chairman, I would simply say that we are long behind helping to
house the families who are in need of Section 8. Over half of Section 8
families are headed by a single parent. With the Kennedy-Stokes
amendment, I believe that we are making great headway in this
legislation to assure that those families who are asking not for a
hand-out, but a hand-up and a step-up, that those families in my
district and in the Houston area, in particular, which has been
designated, as I said earlier, as a city without a lot of affordable
housing, I believe the Stokes-Kennedy amendment does answer the
question.
I am very pleased to rise to support this particular amendment. If I
might inquire of the gentleman from Ohio, before my time ends and
before withdrawing my amendment, to make sure that my understanding is
correct, is it correct that the gentleman's amendment will provide
additional monies for those families, incremental monies, to help them
qualify for the Section 8? Is my understanding correct regarding the
provisions of the gentleman's amendment that it will add more families
to the Section 8 opportunities?
Mr. STOKES. Mr. Chairman, will the gentlewoman yield?
Ms. JACKSON-LEE of Texas. I yield to the gentleman from Ohio.
Mr. STOKES. Mr. Chairman, what precisely my amendment would do is to
add additional vouchers up to the amount of $97 million, which is the
requested amount by the administration, which would automatically
provide additional vouchers, additional opportunities, for welfare to
work for those persons who are residents of public housing.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I appreciate very much the
gentleman's leadership on that issue. As he well knows, I had an
additional concern about helping families raise their incomes to be
eligible for Section 8. I do believe it is extremely important to
answer the many waiting lists that are around the Nation where families
are waiting for Section 8, and I applaud the gentleman's leadership.
I am delighted to withdraw my amendment in support of the Stokes-
Kennedy amendment and thank the gentleman for his very fine leadership
and thank the chairman as well for his fine leadership on this issue.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I ask unanimous consent to
withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentlewoman
from Texas?
There was no objection.
The CHAIRMAN. The Clerk will read.
The Clerk read as follows:
For tenant-based assistance under the United States Housing
Act of 1937 to help eligible families make the transition
from welfare to work, $100,000,000 from the total amount
provided under this heading, to be administered by public
housing agencies (including Indian housing authorities, as
defined by the Secretary of Housing and Urban Development),
and to remain available until expended: Provided, That
families initially selected to receive assistance under this
paragraph (1) shall be eligible to receive, shall be
currently receiving, or shall have received within the
preceding year, assistance or services funded under the
Temporary Assistance for Needy Families (TANF) program under
part A of title IV of the Social Security Act or as part of a
State's qualified State expenditure under section
409(a)(7)(B)(i) of such Act; (2) shall be determined by the
agency to be families for which tenant-based housing
assistance is critical to successfully obtaining or retaining
employment; and (3) shall not already be receiving tenant-
based assistance: Provided further, That each application
shall (1) describe the proposed program, which shall be
developed by the public housing agency in consultation with
the State, local or Tribal entity administering the TANF
program and the entity, if any, administering the Welfare-to-
Work grants allocated by the United States Department of
Labor pursuant to section 403(a)(5)(A) of the Social Security
Act, and which shall take into account the particular
circumstances of the community; (2) demonstrate that tenant-
based housing assistance is critical to the success of
assisting eligible families to obtain or retain employment;
(3) specify the criteria for selecting among eligible
families to receive housing assistance under this paragraph;
(4) describe the proposed strategy for tenant counseling and
housing search assistance and landlord outreach; (5) include
any requests for waivers of any administrative requirements
or any provisions of the United States Housing Act of 1937,
with a demonstration of how approval of the waivers would
substantially further the objective of this paragraph; (6)
include certifications from the State, local, or Tribal
entity administering assistance under the TANF program and
from the entity, if any, administering the Welfare-to-Work
grants allocated by the United States Department of Labor,
that the entity supports the proposed program and will
cooperate with the public housing agency that administers the
housing assistance to assure that such assistance is
coordinated with other welfare reform and welfare to work
initiatives; however, if either does not respond to the
public housing agency within a reasonable time period, its
concurrence shall be assumed, and if either objects to the
application, its concerns shall accompany the application to
the Secretary, who shall take them into account in this
funding decision; and (7) include such other information as
the Secretary may require and meet such other requirements as
the Secretary may establish: Provided further, That the
Secretary, after consultation with the Secretary of Health
and Human Services and the Secretary of Labor, shall select
public housing agencies to receive assistance under this
paragraph on a competitive basis, taking into account the
need for and quality of the proposed program (including
innovative approaches), the extent to which the assistance
will be coordinated with welfare reform and welfare to work
initiatives, the extent to which the application demonstrates
that tenant-based assistance is critical to the success of
assisting eligible families to obtain or retain employment;
and other appropriate criteria established by the Secretary:
Provided further, That the Secretary may waive any
administrative requirement or any provision of the United
States Housing Act of 1937 if the Secretary determines that
the waiver would substantially further the objective of the
assistance under this paragraph, and in the event of any
waiver, may make provision for alternative conditions or
terms where appropriate: Provided further, That the Secretary
may use up to one percent of the amount available under this
paragraph, directly or indirectly, to conduct detailed
evaluations of the effect of providing assistance under this
paragraph.
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), $3,000,000,000, to
remain available until expended: Provided, That of the total
amount, up to $100,000,000 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
programs 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, 1998, of funds heretofore provided for section 673 public
housing service coordinators shall be transferred to and
merged with amounts made available under this heading.
[[Page H5767]]
public housing operating fund
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), $2,818,000,000, to remain
available until expended.
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,
$290,000,000, 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;
and $10,000,000 shall be provided to the Office of Inspector
General for Operation Safe Home: 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 (including appropriate homeownership down payment
assistance for displaced tenants), $600,000,000, 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 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, 1997, and 1998, and the Omnibus
Consolidated Rescissions and Appropriations Act of 1996:
Provided further, That for purposes of environmental review
pursuant to the National Environmental Policy Act of 1969, a
grant under this head or under prior appropriations Acts for
use for the purposes under this head shall be treated as
assistance under title I of the United States Housing Act of
1937 and shall be subject to the regulations issued by the
Secretary to implement section 26 of such Act: 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), $620,000,000, to remain available until expended,
of which $6,000,000 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, $6,000,000 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 $54,600,000.
In addition, for administrative expenses to carry out the
guaranteed loan program, up to $200,000, which shall be
transferred to and merged with the appropriation for
departmental salaries and expenses, to be used only for the
administrative costs of these guarantees: Provided, That the
funds made available in the first proviso in the preceding
paragraph 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.
indian housing loan guarantee fund program account
(including transfer of funds)
For the cost of guaranteed loans, as authorized by section
184 of the Housing and Community Development Act of 1992 (106
Stat. 3739), $6,000,000, 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 $68,881,000.
In addition, for administrative expenses to carry out the
guaranteed loan program, up to $400,000, which shall be
transferred to and merged with the appropriation for
departmental salaries and expenses, to be used only for the
administrative costs of these guarantees.
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), $225,000,000, to remain available
until expended: Provided, That up to 1 percent of such funds
shall be available to the Secretary for technical assistance.
community development block grants
(including transfer 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), $4,725,000,000, to remain available until
September 30, 2001: Provided, That $67,000,000 shall be for
grants to Indian tribes notwithstanding section 106(a)(1) of
such Act; $3,000,000 shall be available as a grant to the
Housing Assistance Council; $1,800,000 shall be available as
a grant to the National American Indian Housing Council;
$50,000,000 shall be for grants pursuant to section 107 of
the Act; $20,000,000 shall be for grants pursuant to the Self
Help Housing Opportunity program, subject to authorization:
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,
$20,000,000 shall be available 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: 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.
Of the amount made available under this heading,
$30,000,000 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), with not less than $10,000,000 of the
funding to be used in rural areas, including tribal areas, to
be divided equally among four entities, as specified in the
report of the Appropriations Committee accompanying this Act.
Of the amount provided under this heading, the Secretary
of Housing and Urban Development may use up to $50,000,000
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 $20,000,000 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 case management
skills training, job search assistance, assistance related to
retaining employment, vocational and entrepreneurship
development
[[Page H5768]]
and support programs, such as 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: Provided, That local YouthBuild
programs that 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,
$50,000,000 shall be available for the Economic Development
Initiative (EDI).
Of the amount made available under this heading,
$25,000,000 shall be available 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: Provided further, That 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.
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, $1,600,000,000,
to remain available until expended: Provided, That up to
$7,000,000 of these funds shall be available for the
development and operation of integrated community development
management information systems: Provided further, That up to
$10,000,000 of these funds shall be available for Housing
Counseling under section 106 of the Housing and Urban
Development Act of 1968.
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), $975,000,000, to remain available until expended:
Provided, That permanent housing assisted under the
supportive housing program with amounts provided under this
heading in this Act shall be given to chronically homeless
individuals and families who have, or who include members who
have, chronic disabilities, including substance and alcohol
abuse, and mental illness and other chronic health
conditions: Provided further, That any permanent housing
assisted under this heading shall be provided only if
supportive services are linked to the individuals living in
the housing: Provided further, That the Secretary of Housing
and Urban Development shall conduct a review of any balances
of amounts provided under this heading in this or any
previous appropriation Act that have been obligated but
remain unexpended and shall deobligate any such amounts that
the Secretary determines were obligated for contracts that
are unlikely to be performed: Provided further, That up to 1%
of the funds appropriated under this heading may be used for
technical assistance and tracking systems needed to carry out
the directive provided in the Committee Report.
housing for special populations
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 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 shall be for five years in
duration: Provided further, That the Secretary may waive any
provision of section 202 of the Housing Act of 1959 or
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 respective 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.
flexible subsidy fund
(transfer of funds)
From the Rental Housing Assistance Fund, all uncommitted
balances of excess rental charges as of September 30, 1998,
and any collections made during fiscal year 1999, 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 1999, 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 1999, obligations to make direct loans
to carry out the purposes of section 204(g) of the National
Housing Act, as amended, shall not exceed $50,000,000:
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, $328,888,000, to be
derived from the FHA-mutual mortgage insurance guaranteed
loans receipt account, of which not to exceed $324,866,000
shall be transferred to the appropriation for departmental
salaries and expenses; and of which not to exceed $4,022,000
shall be transferred to the appropriation for the Office of
Inspector General.
In addition, for non-overhead administrative expenses
necessary to carry out the Mutual Mortgage Insurance
guarantee and direct loan program, $200,000,000, to be
derived from the FHA-mutual mortgage insurance guaranteed
loan receipt account.
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 $18,100,000,000.
Gross obligations for the principal amount of direct loans,
as authorized by sections 204(g), 207(l), 238, and 519(a) of
the National Housing Act, shall not exceed $50,000,000; of
which not to exceed $30,000,000 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, $211,455,000, of
which $193,134,000, shall be transferred to the appropriation
for departmental salaries and expenses; and of which
$18,321,000 shall be transferred to the appropriation for the
Office of Inspector General.
In addition, for non-overhead administrative expenses
necessary to carry out the guaranteed and direct loan
programs, $104,000,000.
[[Page H5769]]
Government National Mortgage Association
Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account
(including transfer of funds)
During fiscal year 1999, 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 $150,000,000,000.
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, $47,500,000, to remain
available until September 30, 2000, of which $10,000,000
shall be for activities to support the Partnership for
Advanced Technologies in Housing.
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, $40,000,000, to remain
available until September 30, 2000, of which $23,500,000
shall be to carry out activities pursuant to such section
561: Provided, That 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.
{time} 1115
Mr. STOKES. Mr. Chairman, I move to strike the last word.
Mr. Chairman, I would like to speak briefly about the Fair Housing
Initiatives Program and particularly about my understanding of the
committee's intent with respect to use of funds for this program.
The Fair Housing Initiatives Program, known as FHIP, provides grants
to nonprofit organizations and local government agencies to aid in the
promotion of fair housing. These grants are used for education, for
outreach efforts, for investigation of possible violations, for
conciliation of complaints and other similar purposes.
FHIP guarantees to address the full range of prohibited
discrimination in sale and rental of housing and provision of housing-
related services, including discrimination based on race,
discrimination based on sex, discrimination against people with
disabilities, and discrimination against families with children.
Unfortunately, this kind of housing discrimination still exists in
our Nation. And, for this reason, I am pleased to report that our
committee has been able to provide a portion of the funding increase
requested by the administration for the FHIP program.
In funding this program, our subcommittee has taken note of a
controversy surrounding the application of our Federal Fair Housing
laws to discrimination in the provision of property insurance. Now, I
and many others believe that there should be no doubt that the Fair
Housing Act prohibits that kind of discrimination. Without access to
insurance, they are not going to get a mortgage and they are not going
to be able to buy a home. This position has been consistently taken by
HUD and the Justice Department throughout both Republican and
Democratic administrations and has been reaffirmed by the courts.
However, some still raise doubts and maintain that FHIP funds should
not be available to address discrimination in the provision of property
insurance. In the spirit of compromise, we worked out an agreement on
this issue last year. That agreement proved workable in fiscal year
1998 and is repeated in the committee's report language on this bill.
In essence, the committee agreed that FHIP grants should not be
awarded for any single-purpose enforcement initiatives. In other words,
funds should not be used to make grants for enforcement efforts
targeted to any narrow category of discrimination, whether that
category is discrimination in provision of insurance or any other
particular form of discrimination. Rather, FHIP funds are to be used
for activities addressing a broad range of conduct prohibited by the
Fair Housing Act.
In the view of HUD, the Justice Department and the courts, that broad
range of prohibited conduct includes discrimination in the provision of
insurance. And FHIP grantees are free to use their funds to address
such discrimination as long as they do so in the context of a broadly
based fair housing enforcement program.
Mrs. CHENOWETH. Mr. Chairman, I move to strike the last word.
Mr. Chairman, one of the oldest tactics of argument is the shotgun
approach. In debate, they bombard their opposition with a flurry of
arguments in the hopes that somewhere along the line one of their
points will ring true.
In football, an all-out blitz gives the defense the very best odds
that somebody will sack the quarterback. But, Mr. Chairman, the
appropriations process in the Congress is not a high school debate, and
it is not a football game. Instead, it should be a solemn
responsibility of the elected representatives of this great Nation to
determine the just allocation of the hard-earned money of our Nation's
taxpayers.
We do not have a fair and honest debate on individual departments or
programs. Instead, in the VA-HUD appropriations bill, we will have
alphabet soup, an approach to government.
Let me just read to my colleagues some of the names of the agencies
that we are dealing with: HUD, EPA, CEQ, OEQ, FDIC, FEMA, NASA, NSF,
ABMC, CSHIB. Mr. Chairman, I am sure my colleagues get my point. It
goes on and on and on. Why are we forced to vote in favor of increased
funding for agencies like HUD in order to just get funding for our
veterans and complete our promises?
Let me demonstrate my point. I asked for a seat on the Committee on
Veterans' Affairs in the 105th Congress in order to be in a position of
advocacy for these great Americans. Less than a month ago, two chairmen
of the Committee on Veterans' Affairs joined with me to hold a field
hearing in my district to determine the methods of improving veterans'
health care. Both chairmen and I came out of that hearing with a clear
idea about the steps that Congress and the VA needs to take to ensure
that we keep our promises as a Nation to the veterans to provide the
health care we promised.
So, in theory, all I would have to do is look at the recommendations
from the Subcommittee on VA, HUD and Independent Agencies to ensure
that the necessary programs are funded at the appropriate levels. Well,
instead, I have to vote to fund the VA in conjunction with some 20
other programs in order to guarantee the VA is funded. This is
offensive, Mr. Chairman.
But I also have other concerns about the VA-HUD appropriation bill.
This bill appropriates $94.4 billion in new budget authority, $94.4
billion. It increases spending by $4.4 billion over 1998. But what
concerns me most about this increase in spending is that not one penny
of the increases will go to the veterans' medical care. Over $4 billion
of new spending and we are not going to spend one new dime to provide
the necessary medical care. Yes, we spent new money for administrative
care, but not new money for the kind of medical care we need for our
veterans.
This bill also makes no provision for the mandatory cost-of-living
adjustment for our veterans' benefits. We provided for everyone else,
but what about our veterans? Again, there is an increase of more than
$4 billion in spending from last year, but that does not include the
necessary COLA for our veterans.
Earlier this year, we voted to take billions of dollars from
veterans' programs and use them to fund transportation projects.
Instead of trying to right the wrong, we are increasing spending for
HUD and EPA and CEQ and not for the veterans' medical care.
Additionally, this bill cuts funding for the maintenance of war
memorials, our national cemeteries, and Arlington National Cemetery,
our finest symbol of honor and valor in this country.
Mr. Chairman, I recognize the need for fiscal responsibility.
However, this is not being responsible, increasing HUD by the degree
that we are and forgetting our veterans. We should not balance the
budget on the back of our
[[Page H5770]]
veterans. They should be a priority because we made that promise, not
an afterthought.
I urge a no vote on H.R. 4194.
Mr. LEWIS of California. Mr. Chairman, I move to strike the last
requisite number of words.
Mr. Chairman, I must say to my colleagues in the House that the
description made of our bill a moment ago is so far from being a
reflection of the work of this committee that I cannot help but
respond.
This committee has been a part of that significant effort to reduce
patterns of growth in the Government across the board. We have reduced
patterns of growth in every category except the veterans' category.
This subcommittee has consistently adjusted funding for veterans in a
positive way. In a bipartisan way, we have expressed our concern about
veterans and indeed have made significant strides in the direction of
improving the quality of care delivered to veterans across the country.
The CHAIRMAN (Mr. Combest). The Clerk will read.
The Clerk read as follows:
Office of Lead Hazard Control
lead hazard reduction
For the Lead Hazard Reduction Program, as authorized by
sections 1011 and 1053 of the Residential Lead-Based Hazard
Reduction Act of 1992, $80,000,000 to remain available until
expended, of which $2,500,000 shall be for CLEARCorps and
$20,000,000 shall be for a Healthy Homes Initiative, which
shall be a program pursuant to sections 501 and 502 of the
Housing and Urban Development Act of 1970 that shall include
research, studies, testing, and demonstration efforts,
including education and outreach concerning lead-based paint
poisoning and other housing-related environmental diseases
and hazards.
Management and Administration
Salaries and Expenses
(including transfer of funds)
For necessary administrative and nonadministrative 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, $985,826,000,
of which $518,000,000 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, $1,000,000 shall be provided from the
``Community Development Grants Program'' account, $200,000
shall be provided from the ``Native American Housing Block
Grants'' account, and $400,000 shall be provided from the
``Indian Housing Loan Guarantee Fund 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, $81,910,000, of which $22,343,000 shall be provided
from the various funds of the Federal Housing Administration
and $10,000,000 shall be provided 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, $16,551,000, 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.
Mrs. KELLY. Mr. Chairman, I move to strike the last word.
I would like to join the gentleman from California (Mr. Lewis) in a
colloquy.
Chairman Lewis, I apologize for not being here during the time that
you were discussing title I of this bill. Other business kept me from
the House floor.
But, as you know, I and a number of my colleagues in New York and New
Jersey have been very concerned over reports of substandard care amount
our veterans' hospitals with Veterans Integrated Service Network 3.
An investigation by the VA's Office of Medical Inspector confirmed
over 158 separate health and safety violations at the VISN 3
facilities. Of added concern was the fact that these problems coincided
with the funding cuts required by the implementation of the Veterans
Equitable Resource system, or VERA.
While the Office of Medical Inspector was identifying so many
problems related to the care and services of our veterans, the VISN 3
director transferred an additional $20 million over and above what was
required by VERA back to Washington. This action may have satisfied a
budgetary goal, but it is completely inconsistent with the goal of
quality veterans care, which should be the core mission of the VA.
With your leadership, Mr. Chairman, the committee included report
language to accompany the Fiscal Year 1999 VA-HUD appropriations bill
to urge the VA Secretary to provide VISN 3 with a one-time credit of
$20 million, ensuring that this funding remains in the Network to
address the problems noted in the OMI's report. Unfortunately, public
statements by the VA have suggested that the agency may not carry out
the committee's wishes as set forth by the report.
Mr. Chairman, is it your intention that the VA will carry out the
will of the committee as dictated by the report language?
Mr. LEWIS of California. Mr. Chairman, will the gentlewoman yield?
Mrs. KELLY. I yield to the gentleman from California.
Mr. LEWIS of California. The gentlewoman from New York (Mrs. Kelly)
correctly characterizes the nature of the problems in VISN 3, and I
would like to assure her that it is my intention that the VA comply
with the directive included in the report to provide VISN 3 with a one-
time credit of $20 million.
To further address her concerns, I have a letter from VA Deputy
Secretary Gober which clarifies that it is his agency's policy to honor
appropriations report language.
Mr. GILMAN. Mr. Chairman, I rise today in support of the colliquy
taking place between subcommittee Chairman Lewis and my colleague from
New York, Representative Kelly.
Earlier this year, a General Accounting Office study, which had been
requested by the New York delegation, revealed that the director of
VISN-3 had returned $20 million from his FY '97 budget to Washington at
a time when the VA Office of the Medical Inspector was finding more
than 156 separate health and safety violations at two of the VISN's
eight hospitals.
No other VISN, Mr. Speaker, returned any money from their FY '97
budget to Washington. Leaving the timing of the decision aside, central
VA authorities, at the very least, should have credited VISN-3 with
making additional contributions to VERA requirements ahead of time.
Regrettably, this was not the case, and essentially, VISN-3 received
absolutely nothing for returning these funds.
VISN-3 has been the one network hardest hit by the VERA realignment.
While we in Congress are awaiting the final report of the GAO on the
effects of VERA on the quality of care being delivered in VISN-3, it is
safe to conclude that VERA has not improved matters.
Furthermore, while it may have been inappropriate for the VISN
director to send back such a large sum of money at a time when so many
infra-structural and staffing problems were surfacing, the fact remains
that the VISN should have benefited from its director's
``thriftiness.'' That it did not is a gross injustice, one which the VA
should now correct to assure quality care for our Veterans.
Mr. FRELINGHUYSEN. Mr. Chairman, I move to strike the last word.
Mr. Chairman, I would like to add to the comments made in the
colloquy between the gentleman from California (Mr. Lewis) and the
gentlewoman from New York (Mrs. Kelly).
First of all, let me thank the gentlewoman from New York (Mrs. Kelly)
and the gentlewoman from my own State of New Jersey (Mrs. Roukema) for
their leadership relative to getting back from Washington the money
that was sent back by the VISN 3 director, Jim Farsetta, from the New
York and New Jersey region.
{time} 1130
Their leadership has been wonderful and entirely appropriate.
Only 2 weeks ago, Mr. Chairman, I learned in my district office in
New Jersey from the top brass of that VISN, that Veterans Integrated
Service Network, from the lips of James Farsetta, who is the director,
as well as Kim Mizarch, who heads up the combined veterans hospitals in
New Jersey, that the VA, if that money comes back to
[[Page H5771]]
New York and New Jersey, that $20 million that was inappropriately sent
back to Washington, that the VISN leadership would use that to pay the
retirement packages for employees that will be retiring from hospitals
in the New York and New Jersey region.
That is entirely inappropriate. If, in fact, that money comes back to
New York and New Jersey, it ought to be used to increase the health
care access and programs, as the gentlewoman from New Jersey (Mrs.
Roukema), the gentlewoman from New York (Mrs. Kelly) and myself and
other members of the delegation, both Democrats and Republicans, would
seek. The thought of using that money for retirement packages flies in
the face of everything we have learned about the way our system is run
and, quite honestly, quality of care issues are definitely in effect in
that that money ought to be used for medical care for the veterans, not
for retirement packages.
Mrs. ROUKEMA. Mr. Chairman, will the gentleman yield?
Mr. FRELINGHUYSEN. I yield to the gentlewoman from New Jersey.
Mrs. ROUKEMA. Mr. Chairman, I want to express my appreciation for
gentleman's leadership on this subject; of course, for the gentlewoman
from New York (Mrs. Kelly). We all share the same needs in the New
York-New Jersey area for veterans.
I also want to enter into this colloquy because it is most essential,
what the gentleman has just said and what I stated earlier in the
general debate, that the committee has got to force the compliance with
the VA under the conditions of this legislation and the conditions
under which the $20 million is being allocated. And I am happy to hear,
I had not known until just recently, about this conversation or
discussion the gentleman had with Farsetta.
Mr. FRELINGHUYSEN. Director Farsetta.
Mrs. ROUKEMA. The director, but I am very pleased to learn of the
letter that the gentleman from California (Mr. Lewis) has just
identified and the stated intentions. This colloquy and the language in
the appropriations bill should be ample evidence that they have to
comply with the intentions of Congress,, and I really commend the
gentleman for his leadership.
I want to continue to working with the gentleman, Mr. Chairman. We
will be the watchdogs on this issue.
Mr. FRELINGHUYSEN. Reclaiming my time, I yield to the gentlewoman
from New York (Mrs. Kelly).
Mrs. KELLY. Mr. Chairman, I simply want to concur in what the
gentleman said, and I want to emphasize that the money should go, as we
all expected it to go, into high-quality medical care for the veterans.
They deserve nothing less.
Mrs. ROUKEMA. Precisely.
Mr. FRELINGHUYSEN. Mr. Chairman, I yield to the gentleman from New
York (Mr. Solomon), chairman of the Committee on Rules.
Mr. SOLOMON. Mr. Chairman, I will make it very fast.
I just want to commend the gentleman from New Jersey (Mr.
Frelinghuysen), and certainly the gentlewoman from New Jersey (Mrs.
Roukema), particularly the gentlewoman from New York (Mrs. Kelly), my
neighbor.
As a former ranking member of the Committee on Veterans Affairs, the
money ought to go to medical care delivery. That is where the shortage
is. And I appreciate, believe me, the support of the gentleman from
California (Mr. Lewis) because he has always been a great supporter of
the veterans, and with this help now we will see that it happens.
The CHAIRMAN. The Clerk will read.
The Clerk read as follows:
administrative provisions
public and assisted housing rents, preferences, and flexibility
Sec. 201. (a) Section 402(a) of The Balanced Budget
Downpayment Act, I (Public Law 104-99; (110 Stat. 40)) is
amended by striking ``fiscal years 1997 and 1998'' and
inserting ``fiscal years 1997, 1998, and 1999''.
(b) Section 402(f) of The Balanced Budget Downpayment Act,
I (42 U.S.C. 1437aa note) is amended by inserting before the
period at the end the following: ``, except that subsection
(d) and the amendments made by such subsection shall also be
effective for fiscal year 1999''.
(c) Public Housing Funding Flexibility.--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
1999 or any preceding fiscal year, except that the authority
in the first sentence of section 14(q)(1) 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 years 1998 and 1999.''
delay reissuance of vouchers and certificates
Sec. 202. Section 403(c) of The Balanced Budget Downpayment
Act, I (Public Law 104-99; (110 Stat. 44)) is amended--
(1) by striking ``fiscal years 1996, 1997, and 1998'' and
inserting ``fiscal years 1996, 1997, 1998, and 1999'';
(2) by striking ``1997 and October'' and inserting ``1997,
October''; and
(3) by inserting before the semicolon the following: ``,
and October 1, 1999 for assistance made available during
fiscal year 1999''.
Housing Opportunities for Persons With AIDS Grants
Sec. 203. (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 1999 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 in a prior fiscal year under
clause (ii) of such section; and
(2) is not otherwise eligible for an allocation for fiscal
year 1999 under such clause (ii) because the areas in the
State outside of the metropolitan statistical areas that
qualify under clause (i) in fiscal year 1999 do not have the
number of cases of acquired immunodeficiency syndrome
required under such clause.
(b) Amount.--The amount of the allocation and grant for any
State described in subsection (a) shall be an amount based on
the cumulative number of AIDS cases in the areas of that
State that are outside of metropolitan statistical areas that
qualify under clause (i) of such section 854(c)(1)(A) in
fiscal year 1999 in proportion to AIDS cases among cities and
States that qualify under clauses (i) and (ii) of such
section and States deemed eligible under subsection (a).
(c) Environmental Review.--For purposes of environmental
review, pursuant to the National Environmental Policy Act of
1969 and other provisions of law that further the purposes of
such Act, a grant under the AIDS Housing Opportunity Act (42
U.S.C. 12901 et seq.) from amounts provided under this or
prior Acts shall be treated as assistance for a special
project that is subject to section 305(c) of the Multifamily
Housing Property Disposition Reform Act of 1994 (42 U.S.C.
3547), and shall be subject to the regulations issued by the
Secretary to implement such section. Where the grantee under
the AIDS Housing Opportunity Act is a nonprofit organization
and the activity is proposed to be carried out within the
jurisdiction of an Indian tribe or the community of an Alaska
native village, the role of the State or unit of general
local government under sections 305(c)(1)-(3) of such Act may
be carried out by the Indian tribe or Alaska native village
instead.
Drawdown of Funds
Sec. 204. 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 sentence: ``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.''.
Issuance of Certificates and Vouchers to Single Persons
Sec. 205. (a) Certificate Program.--Section 8(c)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is
amended by inserting after the third sentence the following
new sentence: ``The maximum monthly rent for a single person
(other than an elderly person or person with disabilities, if
such elderly person or person with disabilities is living
with one or more persons determined under the regulations of
the Secretary to be essential to such person's care or well-
being) receiving tenant-based rental assistance in the
certificate program under subsection (b)(1) shall not exceed
by more than the amount permitted under the second sentence
of this paragraph the fair market rental for an efficiency
unit, except that the Secretary, or the public housing agency
in accordance with guidelines established by the Secretary,
may determine not to apply the limitation in this sentence if
there is an insufficient supply of efficiency units in the
market area or if necessary to meet the needs of persons with
disabilities.''.
(b) Voucher Program.--Section 8(o) of such Act (42 U.S.C.
1437f(o)) is amended by inserting the following at the end of
paragraph (1): ``The payment standard for a single person
(other than an elderly person or person with disabilities, if
such elderly person or person with disabilities is living
with one or more persons determined under the regulations of
the Secretary to be essential to such person's care or well-
being) shall be based on the fair market rental for an
efficiency unit, except that the Secretary, or
[[Page H5772]]
the public housing agency in accordance with guidelines
established by the Secretary, may determine not to apply the
limitation in this sentence if there is an insufficient
supply of efficiency units in the market area or if necessary
to meet the needs of persons with disabilities.''.
(c) Applicability.--This section shall take effect 60 days
after the later of October 1, 1998 or the date of enactment
of this Act.
Elimination of Shopping Incentive for Voucher Families Who Remain in
Same Unit Upon Initial Receipt of Assistance
Sec. 206. (a) Section 8(o)(2) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(2)) is amended by inserting
the following new sentence at the end: ``Notwithstanding the
preceding sentence, for families being admitted to the
voucher program who remain in the same unit or complex, where
the rent (including the amount allowed for utilities) does
not exceed the payment standard, the monthly assistance
payment for any family shall be the amount by which such rent
exceeds the greater of 30 percent of the family's monthly
adjusted income or 10 percent of the family's monthly
income.''.
(b) This section shall take effect 60 days after the later
of October 1, 1998 or the date of enactment of this Act.
renegotiation of performance funding system
Sec. 207. Section 9(a)(3)(A) of the United States Housing
Act of 1937 (42 U.S.C. 1437g(a)(3)(A)) is amended--
(1) by inserting after the third sentence the following new
sentence to read as follows:
``Notwithstanding the preceding sentences, the Secretary may
revise the performance funding system in a manner that takes
into account equity among public housing agencies and that
includes appropriate incentives for sound management.''; and
(2) in the last sentence, by inserting after ``vacant
public housing units'' the following: ``, or any substantial
change under the preceding sentence,''.
cdbg and home exemption
Sec. 208. The City of Oxnard, California may use amounts
available to the City under title I of the Housing and
Community Development Act of 1974 and under subtitle A of
title II of the Cranston-Gonzalez National Affordable Housing
Act to reimburse the City for its cost in purchasing 19.89
acres of land, more or less, located at the northwest corner
of Lombard Street and Camino del Sol in the City, on the
north side of the 2100 block of Camino del Sol, for the
purpose of providing affordable housing. The procedures set
forth in sections 104(g) (2) and (3) of the Housing and
Community Development Act of 1974 and sections 288 (b) and
(c) of the Cranston-Gonzalez National Affordable Housing Act
shall not apply to any release of funds for such
reimbursement.
Amendment No. 9 Offered by Mr. Vento
Mr. VENTO. Mr. Chairman, I offer an amendment that was printed in the
Record.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 9 offered by Mr. Vento:
Page 52, after line 2, insert the following new section:
LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP
Sec. 210. (a) Notice of Prepayment or termination.--
Notwithstanding section 212(b) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4102(b)) or any other provision of law, during fiscal
year 1999 and each fiscal year thereafter, an owner of
eligible low-income housing (as defined in section 229 of the
Low-Income Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4119)) that intends to take any action
described in section 212(a) of such Act (12 U.S.C. 4102(a))
shall, not less than 1 year before the date on which the
action is taken--
(1) file a notice indicating that intent with the chief
executive officer of the appropriate State or local
government for the jurisdiction within which the housing is
located; and
(2) provide each tenant of the housing with a copy of that
notice.
(b) Exception.--The requirements of this section do not
apply--
(1) in any case in which the prepayment or termination at
issue is necessary to effect conversion to ownership by a
priority purchaser (as defined in section 231(a) of the Low-
Income Housing Preservation and Resident Homeownership Act of
1990 (12 U.S.C. 4120(a)); or
(2) in the case of any owner who has provided notice of an
intended prepayment or termination on or before July 7, 1998,
in accordance wit the requirements of section 212(b) of the
Low-Income Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4102(b)).
Mr. LEWIS of California. Mr. Chairman, I reserve a point of order on
the amendment.
Mr. VENTO. Mr. Chairman, I appreciate the gentleman reserving his
point of order.
There is a similar amendment that has been passed to mine which
provides 1 year notice for persons residing in assisted housing where
there is an exercised option by the owner to, in fact, terminate the
assisted or Section 8 type of support to such housing. This is a
problem of immediate concern that is causing a crisis across the
Nation.
The fact is that in 1989 in the LIHPRA legislation that was enacted,
there was a provision for prenotification of the option to exercise
termination of such contract. But that has not been implemented, and,
as my colleagues are aware and I am very concerned about, there is not
funding for the Low-income Housing Preservation Resident Ownership
Program in this legislation, and what we hope to do is at least try to
provide this notice so that individuals who are receiving only, in some
cases only 30 days and others 60 days notice, are not receiving much
notification, that they, in fact, would have that. I suppose optimally,
if they have a year, they would have a chance to really restructure
this and to do something to, in fact, maintain this low-income housing.
While it is important nationwide with hundreds of thousands of units
of low-income housing being converted, it is especially important in
our State of Minnesota where nearly 10 percent of the low-income
housing is affected by this provision.
So this prepayment notice provision has been added to the Senate bill
by our senior Senator, and we hope that that will be looked at in
conference. At the very least we would like the option to offer it at
this time, but the rule obviously, while making great provisions for
other measures to be offered on the floor that have, I think, much less
relevance and relationship to the appropriation process, has decided
not to do so for us.
Mr. Chairman, I yield to the gentleman from Minnesota (Mr. Sabo), my
colleague and a member of this subcommittee.
Mr. SABO. Mr. Chairman, I congratulate the gentleman from Minnesota
(Mr. Vento) on an excellent amendment.
As I understand the gentleman's amendment, it requires notice to both
the residents and the local governments.
Mr. VENTO. Yes, it does, and I continue to yield to the gentleman.
Mr. SABO. That is very crucial for 2 reasons: one, so that the
residents have some advance knowledge that their status may change, and
also so the local governments may know that the status of buildings are
going to change so that there is some potential for negotiating, maybe
even negotiating change of ownership. And I had one big project where
they were able to work out a nonprofit ownership of a building where
the owner wanted to refinance so they could continue as low-income
housing.
And so I just think this is a very important amendment, and let me
add that it is one part of dealing with what is a growing problem in
our country, and that is the lack of affordable housing. Clearly the
expansion of vouchers helps, and I strongly support the Stokes
amendment to add more vouchers. But we have a problem that goes beyond
that in our area in Minnesota, and that is that we have very, very low
vacancy rates, and the problem is that people lose their vouchers, and
there is no place to go. We desperately in this country need to build
more housing that is available for low-income people. The vouchers are
good, but, if there is no housing to use them with, they fail their
purpose.
And so we really need to be fair to local governments, to residents,
to have the kind of notice that my friend, the gentleman from Minnesota
(Mr. Vento), is suggesting, but we also need more vouchers for people
who have low income, but we also need to get serious about producing
more housing that is available for low-income families in this country.
It is a problem that exists not only in our urban area, but in most
rural parts of our State.
So I thank the gentleman for his very good amendment. I understand
the procedural problems we have today, but I would urge the
subcommittee to look kindly on such a proposal in conference.
Mr. VENTO. Mr. Chairman, I thank the gentleman for his comments and
would just point out that this problem that with the notification of
local governments with the State can, in fact, have a very salutary
effect because our State, as an example, has appropriated $10 million
to, in fact, try to respond to the inadequate Federal funding.
[[Page H5773]]
The CHAIRMAN. The time of the gentleman from Minnesota (Mr. Vento)
has expired.
(On request of Mr. Sabo, and by unanimous consent, Mr. Vento was
allowed to proceed for 2 additional minutes.)
Mr. VENTO. Mr. Chairman, I thank the gentleman for the additional
time, and I will be brief, but I was going to point out that the State
had provided dollars in the cities and communities in which they lie.
Minnesota was very quick to pick up on the assisted housing program
that was enacted and put in place in the early 1970s. The consequence
is that we have a significant concentration of assisted housing, and
this assisted housing program worked very well in Minnesota, like a lot
of other public programs and other initiatives that not always have an
even affect across the country, but things seem to work very well there
in terms of what we are doing.
And the State has made this commitment, I think the various cities
and communities, and what is happening is some of the best low-income
housing that has a market approach without a certain contract with
regards to Section 8, my colleagues, and those contracts for 1 year are
somewhat uncertain, and without the type of notice requirements and the
implementation of LIHPRA, we are losing it. So we basically have a
crisis.
Mr. Chairman, I further yield to the gentleman from Minnesota (Mr.
Sabo), my colleague from the Fifth District in Minneapolis.
Mr. SABO. Mr. Chairman, I think our history has been that whatever
problems exist nationally have not existed in most of these projects
and programs in our State, and they worked very well. They provided
very good housing, and are widely used, and people who live there like
them and would like to be able to stay.
At some point I would like to ask the chairman of the subcommittee a
question, and I am not sure if it is appropriate.
Mr. VENTO. Mr. Chairman, I yield to the gentleman from California
(Mr. Lewis) for that particular purpose and response.
Mr. SABO. Mr. Chairman, if the gentleman would yield, my
understanding is that one of the things that helps remedy the situation
are the so-called sticky vouchers which can be used where these
projects are converted.
The CHAIRMAN. The time of the gentleman from Minnesota (Mr. Vento)
has again expired.
(By unanimous consent, Mr. Vento was allowed to proceed for 2
additional minutes.)
Mr. VENTO. Mr. Chairman, I yield to the gentleman from Minnesota (Mr.
Sabo).
Mr. SABO. My understanding is that under this bill sticky vouchers
can be used for renewal after the first year.
Mr. VENTO. Mr. Chairman, I yield to the gentleman from California
(Mr. Lewis), chairman of the subcommittee.
Mr. LEWIS of California. The gentleman is correct.
Mr. VENTO. Mr. Chairman, this amendment would provide tenants and
state or local officials with fair notice that the federally insured
mortgages for buildings in which they live or that are in their
communities, are going to be prepaid. In being prepaid, the building
will no longer be a part of the subsidized housing stock and the
tenants will likely have to move or pay large increases in rent.
In the late 80's and 90's as the threat of prepayment began to loom
large on the horizon, we worked and enacted laws that would help
preserve as many units as possible as subsidized or affordable housing.
We attempted to create incentives for owners to remain in programs or
for them to sell to no-profits or others who would maintain the
affordable housing mission.
We enacted the Low Income Housing Preservation and Resident
Homeownership Act (LIHPRHA). However, funds have not been allocated for
LIHPRHA since FY 1997 and the provisions of LIHPRHA which provide fair
notice, plans of action and tenant displacement assistance appear not
to be being enforced by HUD when owners prepay.
Significantly, this has very negatively affected the jurisdictions in
which those housing units exist and especially the tenants of the
buildings.
This has been devastating for tenants who are often elderly or
disabled persons living on fixed incomes. They are receiving 60 or
sometimes only 30 days notice that their entire lives are going to
disrupted, supportive neighbors and friends lost, and possibly their
proximity to doctors or services that they need eliminated. Worse
still, in many markets, including the Twin Cities of St. Paul and
Minneapolis, there is no where to go. Vouchers if any help but, our
vacancy rate is very low. There is not enough affordable housing to go
around there or other parts of the country as the 5.3 million American
households in substandard housing or paying over 50 percent of their
incomes can tell you.
This amendment can help real people deal with traumatic changes in
the lives in an orderly and reasonable fashion. It will only require a
little extra notice. That could make some difference for people for
whom the very thought of a search for a new home could overwhelm them.
Mr. Speaker, in my state of Minnesota, they were able to come up with
a new law this year that would provide $10 million for each of the next
two years to help preserve some of these building at risk of
prepayment. I intend to introduce very soon legislation that would
provide a federal match to state programs that step up to the plate and
try to save federally assisted affordable housing in their borders.
My amendment today will help responsible governments and tenants with
timely notice that could help them preserve some of the housing in
Minnesota and elsewhere. In Minnesota, the Minnesota State Housing
Agency is estimated that 10 percent of that low income housing stock,
some 5,000 units are at risk. We have a national housing crisis on our
hands and Congress must face it, fairly and squarely now and in the
future. Support my amendment as a first step back into dealing with the
housing crisis and do what Congress can do to make certain that
residents of assisted housing have adequate notice and time to respond
to the eviction from their homes.
Point of Order
The CHAIRMAN. Does the gentleman from California press his point of
order?
Mr. LEWIS of California. Mr. Chairman, I make a point of order
against the Vento amendment because it proposes to change existing law
and constitutes legislation in an appropriation bill, and therefore
violates clause 2 of rule XXI.
The rule states in pertinent part that no amendment to a general
appropriations bill shall be in order if changing existing law. This
amendment, by requiring owners of Preservation-eligible properties to
provide 1 year notice of prepayment to tenants and State and local
governments, imposes additional duties and constitutes, therefore,
legislation in an appropriation bill.
I ask for a ruling of the Chair.
The CHAIRMAN. Does any other Member wish to be heard on the point of
order?
Mr. VENTO. Mr. Chairman, I concede the point of order.
The CHAIRMAN. The point of order is conceded and sustained.
Mr. FRANK of Massachusetts. Mr. Chairman, I move to strike the last
word.
Mr. Chairman, I know we are all eager to conclude, but I did feel the
need to speak. We have had a number of amendments today, and I find
myself in the unusual position, as someone who has been on the
Subcommittee on Housing for 18 years, of not really being able to
enthusiastically get involved in the amendment process because some
things are beyond repair, and this bill is one of them. It is no
reflection on either the chairman or the ranking member. They have, in
my experience, done in the past and continue to do an excellent job
with what they are given to work with.
{time} 1145
The gentleman from California and the gentleman from Ohio I think
have been sensitive and thoughtful in their responsibilities as leaders
of the appropriations subcommittee. But what they have been given to
work with in this bill is a disgrace. There is hardly an aspect of this
important appropriations bill which comes close to being adequately
funded, and we ought to be clear that this is a reflection of the
outrageous, crabbed, insensitive, socially-destructive priorities that
are now governing this Congress.
What is particularly interesting, I think, is that there are probably
80 percent of the Members who have told some group that, yes, they wish
we could have given them more money in veterans' health, in Section 8
housing, in brownfields, in the cleanup of Superfund sites. Everybody
here, close to everybody, is for more money. But, in fact, we will be
disappointing interest after interest, legitimate interests, because of
a crabbed and insensitive set of priorities.
There simply is no way to improve this bill. The gentlemen who run
the
[[Page H5774]]
committee have done as good a job as they can with the extraordinarily
meager resources they are given, so as we amend here, we are reduced to
not even robbing Peter to pay Paul, we are reduced to mugging Peter to
pay Paul's burial expenses, because this bill systematically degrades
and destroys and diminishes valuable government programs.
Let us be very clear, this is a bill inadequate to help with our
housing crisis. This is a bill which will leave people in need of
housing, hard-working families, people who are being told to get off
welfare and get jobs, it will leave them in a worse crisis, because
they will, in many parts of this country, not be able to afford
housing. It will leave the environmental problems of the country worse
off. It will deprive veterans of this country of health care they need
to have.
What are we being told we will then do? We are going to cut taxes. We
have a surplus, and we are told, particularly on the other side, that
we should rejoice because there is this great surplus.
I do rejoice that we are generating more money, but is not a nickel
to go to the veterans who have already lost health care? Is nothing to
go alleviate a housing crisis which this bill will make worse? Is
nothing out of that even worth considering to deal with environmental
problems which go undone?
Members here, I guess I would at least ask for this, Members who have
said this is the best we can do for the environment, for housing and
for veterans, and we have to cut taxes, please have the decency not to
tell people how much you wish you could have helped them. Please have
the decency not to tell people, that, oh, yes, you were for more
housing, and you were for more help for the veterans, and you were for
more help for the brownfields, but somehow you could not do it.
Do you know what we have? What I have called the reverse Houdini.
Harry Houdini became famous, as Ragtime remembers, because other people
would tie him in knots, and his trick was to get out of the knots.
What we have here is a House that has done the reverse Houdini by
voting a crabbed and inadequate budget that underfunds valuable social
programs, and then says, if we have additional revenue, let us put all
of it into tax cuts for people that are already pretty wealthy. And
then people will come to us and say we need help with veterans.
Veterans are going without health care. We need help with housing. We
need help with the environment.
What do we say to them? We cannot help you. Why can we not help you?
Because we have tied our own hands. That is the reverse Houdini. The
Houdini is when somebody else ties you up and you get out of it. The
reverse Houdini is when you tie yourself up, and then people come and
say please help me with these terrible social problems, and you say, I
am sorry, I cannot do that, I am all tied up. But it a self-inflicted
restraint.
So I am not participating in this debate on the amendment process.
Many of my friends are trying very hard, but they are trying to square
the circle. Despite the good intentions of the gentleman from
California, and I apologize to him for praising him in this context, I
will do him no good, I am afraid, by doing so, but I know he tries. The
gentleman from Ohio tries. But they have been given such a desperately
inadequate amount of money to deal with some of the gravest social
problems in America, not because the money is not there, but because
this House chooses to misallocate the money in a reflection of terrible
priorities.
Mr. Chairman, that is why I took the 5 minutes right now. That is why
I am so disappointed that we are so ill-serving the American people.
Amendment No. 12 Offered by Mr. Lazio of New York
Mr. LAZIO of New York. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 12 offered by Mr. Lazio of New York:
Page 2, after line 6, insert the following:
DIVISION A--APPROPRIATIONS
Page 91, line 4, strike ``This Act'' and insert ``Titles I,
II, III, and IV of this Act''.
At the end of the bill (after the short title), insert the
following:
DIVISION B--HOUSING OPPORTUNITY AND RESPONSIBILITY
SEC. 1001. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the
``Housing Opportunity and Responsibility Act of 1997''.
(b) Table of Contents.--The table of contents for this
division is as follows:
DIVISION B--HOUSING OPPORTUNITY AND RESPONSIBILITY
Sec. 1001. Short title and table of contents.
Sec. 1002. Permanent applicability.
Sec. 1003. Declaration of policy to renew American neighborhoods.
TITLE XI--GENERAL PROVISIONS
Sec. 1101. Statement of purpose.
Sec. 1102. Definitions.
Sec. 1103. Organization of public housing agencies.
Sec. 1104. Determination of adjusted income and median income.
Sec. 1105. Community work and family self-sufficiency requirements.
Sec. 1106. Local housing management plans.
Sec. 1107. Review of plans.
Sec. 1108. Reporting requirements.
Sec. 1109. Pet ownership.
Sec. 1110. Administrative grievance procedure.
Sec. 1111. Headquarters reserve fund.
Sec. 1112. Labor standards.
Sec. 1113. Nondiscrimination.
Sec. 1114. Prohibition on use of funds.
Sec. 1115. Inapplicability to Indian housing.
Sec. 1116. Regulations.
TITLE XII--PUBLIC HOUSING
Subtitle A--Block Grants
Sec. 1201. Block grant contracts.
Sec. 1202. Grant authority, amount, and eligibility.
Sec. 1203. Eligible and required activities.
Sec. 1204. Determination of grant allocation.
Sec. 1205. Sanctions for improper use of amounts.
Subtitle B--Admissions and Occupancy Requirements
Sec. 1221. Low-income housing requirement.
Sec. 1222. Family eligibility.
Sec. 1223. Preferences for occupancy.
Sec. 1224. Admission procedures.
Sec. 1225. Family choice of rental payment.
Sec. 1226. Lease requirements.
Sec. 1227. Designated housing for elderly and disabled families.
Subtitle C--Management
Sec. 1231. Management procedures.
Sec. 1232. Housing quality requirements.
Sec. 1233. Employment of residents.
Sec. 1234. Resident councils and resident management corporations.
Sec. 1235. Management by resident management corporation.
Sec. 1236. Transfer of management of certain housing to independent
manager at request of residents.
Sec. 1237. Resident opportunity program.
Subtitle D--Homeownership
Sec. 1251. Resident homeownership programs.
Subtitle E--Disposition, Demolition, and Revitalization of Developments
Sec. 1261. Requirements for demolition and disposition of developments.
Sec. 1262. Demolition, site revitalization, replacement housing, and
choice-based assistance grants for developments.
Sec. 1263. Voluntary voucher system for public housing.
Subtitle F--Mixed-Finance Public Housing
Sec. 1271. Authority.
Sec. 1272. Mixed-finance housing developments.
Sec. 1273. Mixed-finance housing plan.
Sec. 1274. Rent levels for housing financed with low-income housing tax
credit.
Sec. 1275. Carry-over of assistance for replaced housing.
Subtitle G--General Provisions
Sec. 1281. Payment of non-Federal share.
Sec. 1282. Authorization of appropriations for block grants.
Sec. 1283. Funding for operation safe home.
Sec. 1284. Funding for relocation of victims of domestic violence.
TITLE XIII--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE
FOR LOW-INCOME FAMILIES
Subtitle A--Allocation
Sec. 1301. Authority to provide housing assistance amounts.
Sec. 1302. Contracts with PHA's.
Sec. 1303. Eligibility of PHA's for assistance amounts.
Sec. 1304. Allocation of amounts.
Sec. 1305. Administrative fees.
Sec. 1306. Authorizations of appropriations.
Sec. 1307. Conversion of section 8 assistance.
Sec. 1308. Recapture and reuse of annual contract project reserves
under choice-based housing assistance and section 8
tenant-based assistance programs.
Subtitle B--Choice-Based Housing Assistance for Eligible Families
Sec. 1321. Eligible families and preferences for assistance.
Sec. 1322. Resident contribution.
Sec. 1323. Rental indicators.
Sec. 1324. Lease terms.
Sec. 1325. Termination of tenancy.
Sec. 1326. Eligible owners.
[[Page H5775]]
Sec. 1327. Selection of dwelling units.
Sec. 1328. Eligible dwelling units.
Sec. 1329. Homeownership option.
Sec. 1330. Assistance for rental of manufactured homes.
Subtitle C--Payment of Housing Assistance on Behalf of Assisted
Families
Sec. 1351. Housing assistance payments contracts.
Sec. 1352. Amount of monthly assistance payment.
Sec. 1353. Payment standards.
Sec. 1354. Reasonable rents.
Sec. 1355. Prohibition of assistance for vacant rental units.
Subtitle D--General and Miscellaneous Provisions
Sec. 1371. Definitions.
Sec. 1372. Rental assistance fraud recoveries.
Sec. 1373. Study regarding geographic concentration of assisted
families.
Sec. 1374. Study regarding rental assistance.
TITLE XIV--HOME RULE FLEXIBLE GRANT OPTION
Sec. 1401. Purpose.
Sec. 1402. Flexible grant program.
Sec. 1403. Covered housing assistance.
Sec. 1404. Program requirements.
Sec. 1405. Applicability of certain provisions.
Sec. 1406. Application.
Sec. 1407. Training.
Sec. 1408. Accountability.
Sec. 1409. Definitions.
TITLE XV--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES
Subtitle A--Study of Alternative Methods for Evaluating Public Housing
Agencies
Sec. 1501. In general.
Sec. 1502. Purposes.
Sec. 1503. Evaluation of various performance evaluation systems.
Sec. 1504. Consultation.
Sec. 1505. Contract to conduct study.
Sec. 1506. Report.
Sec. 1507. Funding.
Sec. 1508. Effective date.
Subtitle B--Housing Evaluation and Accreditation Board
Sec. 1521. Establishment.
Sec. 1522. Membership.
Sec. 1523. Functions.
Sec. 1524. Powers.
Sec. 1525. Fees.
Sec. 1526. GAO audit.
Subtitle C--Interim Applicability of Public Housing Management
Assessment Program
Sec. 1531. Interim applicability.
Sec. 1532. Management assessment indicators.
Sec. 1533. Designation of PHA's.
Sec. 1534. On-site inspection of troubled PHA's.
Sec. 1535. Administration.
Subtitle D--Accountability and Oversight Standards and Procedures
Sec. 1541. Audits.
Sec. 1542. Performance agreements for authorities at risk of becoming
troubled.
Sec. 1543. Performance agreements and CDBG sanctions for troubled
PHA's.
Sec. 1544. Option to demand conveyance of title to or possession of
public housing.
Sec. 1545. Removal of ineffective PHA's.
Sec. 1546. Mandatory takeover of chronically troubled PHA's.
Sec. 1547. Treatment of troubled PHA's.
Sec. 1548. Maintenance of records.
Sec. 1549. Annual reports regarding troubled PHA's.
Sec. 1550. Applicability to resident management corporations.
Sec. 1551. Advisory council for Housing Authority of New Orleans.
TITLE XVI--REPEALS AND RELATED AMENDMENTS
Subtitle A--Repeals, Effective Date, and Savings Provisions
Sec. 1601. Effective date and repeal of United States Housing Act of
1937.
Sec. 1602. Other repeals.
Subtitle B--Other Provisions Relating to Public Housing and Rental
Assistance Programs
Sec. 1621. Allocation of elderly housing amounts.
Sec. 1622. Pet ownership.
Sec. 1623. Review of drug elimination program contracts.
Sec. 1624. Amendments to Public and Assisted Housing Drug Elimination
Act of 1990.
Subtitle C--Limitations Relating to Occupancy in Federally Assisted
Housing
Sec. 1641. Screening of applicants.
Sec. 1642. Termination of tenancy and assistance for illegal drug users
and alcohol abusers.
Sec. 1643. Lease requirements.
Sec. 1644. Availability of criminal records for tenant screening and
eviction.
Sec. 1645. Definitions.
TITLE XVII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS
Sec. 1701. Rural housing assistance.
Sec. 1702. Treatment of occupancy standards.
Sec. 1703. Implementation of plan.
Sec. 1704. Income eligibility for HOME and CDBG programs.
Sec. 1705. Prohibition of use of CDBG grants for employment relocation
activities.
Sec. 1706. Regional cooperation under CDBG economic development
initiative.
Sec. 1707. Use of American products.
Sec. 1708. Consultation with affected areas in settlement of
litigation.
Sec. 1709. Treatment of PHA repayment agreement.
Sec. 1710. Use of assisted housing by aliens.
Sec. 1711. Protection of senior homeowners under reverse mortgage
program.
Sec. 1712. Conversion of section 8 tenant-based assistance to project-
based assistance in the Borough of Tamaqua.
Sec. 1713. Housing counseling.
Sec. 1714. Transfer of surplus real property for providing housing for
low- and moderate-income families.
Sec. 1715. Effective date.
SEC. 1002. PERMANENT APPLICABILITY.
Upon effectiveness pursuant to section 1601(a), the
provisions of this division and the amendments made by this
division shall apply thereafter, except to the extent
otherwise specifically provided in this division or the
amendments made by this division.
SEC. 1003. DECLARATION OF POLICY TO RENEW AMERICAN
NEIGHBORHOODS.
The Congress hereby declares that--
(1) the Federal Government has a responsibility to promote
the general welfare of the Nation--
(A) by using Federal resources to aid families and
individuals seeking affordable homes that are safe, clean,
and healthy and, in particular, assisting responsible,
deserving citizens who cannot provide fully for themselves
because of temporary circumstances or factors beyond their
control;
(B) by working to ensure a thriving national economy and a
strong private housing market; and
(C) by developing effective partnerships among the Federal
Government, State and local governments, and private entities
that allow government to accept responsibility for fostering
the development of a healthy marketplace and allow families
to prosper without government involvement in their day-to-day
activities;
(2) the Federal Government cannot through its direct action
alone provide for the housing of every American citizen, or
even a majority of its citizens, but it is the responsibility
of the Government to promote and protect the independent and
collective actions of private citizens to develop housing and
strengthen their own neighborhoods;
(3) the Federal Government should act where there is a
serious need that private citizens or groups cannot or are
not addressing responsibly;
(4) housing is a fundamental and necessary component of
bringing true opportunity to people and communities in need,
but providing physical structures to house low-income
families will not by itself pull generations up from poverty;
(5) it is a goal of our Nation that all citizens have
decent and affordable housing; and
(6) our Nation should promote the goal of providing decent
and affordable housing for all citizens through the efforts
and encouragement of Federal, State, and local governments,
and by the independent and collective actions of private
citizens, organizations, and the private sector.
TITLE XI--GENERAL PROVISIONS
SEC. 1101. STATEMENT OF PURPOSE.
The purpose of this division is to promote safe, clean, and
healthy housing that is affordable to low-income families,
and thereby contribute to the supply of affordable housing,
by--
(1) deregulating and decontrolling public housing agencies,
thereby enabling them to perform as property and asset
managers;
(2) providing for more flexible use of Federal assistance
to public housing agencies, allowing the authorities to
leverage and combine assistance amounts with amounts obtained
from other sources;
(3) facilitating mixed income communities;
(4) increasing accountability and rewarding effective
management of public housing agencies;
(5) creating incentives and economic opportunities for
residents of dwelling units assisted by public housing
agencies to work, become self-sufficient, and transition out
of public housing and federally assisted dwelling units;
(6) recreating the existing rental assistance voucher
program so that the use of vouchers and relationships between
landlords and tenants under the program operate in a manner
that more closely resembles the private housing market; and
(7) remedying troubled public housing agencies and
replacing or revitalizing severely distressed public housing
developments.
SEC. 1102. DEFINITIONS.
For purposes of this division, the following definitions
shall apply:
(1) Acquisition cost.--When used in reference to public
housing, the term ``acquisition cost'' means the amount
prudently expended by a public housing agency in acquiring
property for a public housing development.
(2) Development.--The terms ``public housing development''
and ``development'' (when used in reference to public
housing) mean--
(A) public housing; and
(B) the improvement of any such housing.
(3) Disabled family.--The term ``disabled family'' means a
family whose head (or his
[[Page H5776]]
or her spouse), or whose sole member, is a person with
disabilities. Such term includes 2 or more persons with
disabilities living together, and 1 or more such persons
living with 1 or more persons determined under the
regulations of the Secretary to be essential to their care or
well-being.
(4) Drug-related criminal activity.--The term ``drug-
related criminal activity'' means the illegal manufacture,
sale, distribution, use, or possession with intent to
manufacture, sell, distribute, or use, of a controlled
substance (as such term is defined in section 102 of the
Controlled Substances Act).
(5) Effective date.--The term ``effective date'', when used
in reference to this division, means the effective date
determined under section 1601(a).
(6) Elderly families and near elderly families.--The terms
``elderly family'' and ``near-elderly family'' mean a family
whose head (or his or her spouse), or whose sole member, is
an elderly person or a near-elderly person, respectively.
Such terms include 2 or more elderly persons or near-elderly
persons living together, and 1 or more such persons living
with 1 or more persons determined under the regulations of
the Secretary to be essential to their care or well-being.
(7) Elderly person.--The term ``elderly person'' means a
person who is at least 62 years of age.
(8) Eligible public housing agency.--The term ``eligible
public housing agency'' means, with respect to a fiscal year,
a public housing agency that is eligible under section
1202(d) for a grant under this title.
(9) Family.--The term ``family'' includes a family with or
without children, an elderly family, a near-elderly family, a
disabled family, and a single person.
(10) Group home and independent living facility.--The terms
``group home'' and ``independent living facility'' have the
meanings given such terms in section 811(k) of the Cranston-
Gonzalez National Affordable Housing Act.
(11) Income.--The term ``income'' means, with respect to a
family, income from all sources of each member of the
household, as determined in accordance with criteria
prescribed by the applicable public housing agency and the
Secretary, except that the following amounts shall be
excluded:
(A) Any amounts not actually received by the family.
(B) Any amounts that would be eligible for exclusion under
section 1613(a)(7) of the Social Security Act.
(12) Local housing management plan.--The term ``local
housing management plan'' means, with respect to any fiscal
year, the plan under section 1106 of a public housing agency
for such fiscal year.
(13) Low-income family.--The term ``low-income family''
means a family whose income does not exceed 80 percent of the
median income for the area, as determined by the Secretary
with adjustments for smaller and larger families, except that
the Secretary may, for purposes of this paragraph, establish
income ceilings higher or lower than 80 percent of the median
for the area on the basis of the public housing agency's
findings that such variations are necessary because of
unusually high or low family incomes.
(14) Low-income housing.--The term ``low-income housing''
means dwellings that comply with the requirements--
(A) under title XII for assistance under such title for the
dwellings; or
(B) under title XIII for rental assistance payments under
such title for the dwellings.
(15) Near-elderly person.--The term ``near-elderly person''
means a person who is at least 55 years of age.
(16) Operation.--When used in reference to public housing,
the term ``operation'' means any or all undertakings
appropriate for management, operation, services, maintenance,
security (including the cost of security personnel), or
financing in connection with a public housing development,
including the financing of resident programs and services.
(17) Person with disabilities.--The term ``person with
disabilities'' means a person who--
(A) has a disability as defined in section 223 of the
Social Security Act,
(B) is determined, pursuant to regulations issued by the
Secretary, to have a physical, mental, or emotional
impairment which (i) is expected to be of long-continued and
indefinite duration, (ii) substantially impedes his or her
ability to live independently, and (iii) is of such a nature
that such ability could be improved by more suitable housing
conditions, or
(C) has a developmental disability as defined in section
102 of the Developmental Disabilities Assistance and Bill of
Rights Act.
Such term shall not exclude persons who have the disease of
acquired immunodeficiency syndrome or any conditions arising
from the etiologic agent for acquired immunodeficiency
syndrome. Notwithstanding any other provision of law, no
individual shall be considered a person with disabilities,
for purposes of eligibility for public housing under title
XII of this Act, solely on the basis of any drug or alcohol
dependence. The Secretary shall consult with other
appropriate Federal agencies to implement the preceding
sentence.
(18) Production.--When used in reference to public housing,
the term ``production'' means any or all undertakings
necessary for planning, land acquisition, financing,
demolition, construction, or equipment, in connection with
the construction, acquisition, or rehabilitation of a
property for use as a public housing development, including
activity in connection with a public housing development that
is confined to the reconstruction, remodeling, or repair of
existing buildings.
(19) Production cost.--When used in reference to public
housing, the term ``production cost'' means the costs
incurred by a public housing agency for production of public
housing and the necessary financing for production (including
the payment of carrying charges and acquisition costs).
(20) Public housing.--The term ``public housing'' means
housing, and all necessary appurtenances thereto, that--
(A) is low-income housing, low-income dwelling units in
mixed-finance housing (as provided in subtitle F of title
XII), or low-income dwelling units in mixed income housing
(as provided in section 1221(c)(2)); and
(B)(i) is subject to an annual block grant contract under
title XII; or
(ii) was subject to an annual block grant contract under
title XII (or an annual contributions contract under the
United States Housing Act of 1937) which is not in effect,
but for which occupancy is limited in accordance with the
requirements under section 1222(a).
(21) Public housing agency.--The term ``public housing
agency'' is defined in section 1103.
(22) Resident council.--The term ``resident council'' means
an organization or association that meets the requirements of
section 1234(a).
(23) Resident management corporation.--The term ``resident
management corporation'' means a corporation that meets the
requirements of section 1234(b)(2).
(24) Resident program.--The term ``resident programs and
services'' means programs and services for families residing
in public housing developments. Such term may include (A) the
development and maintenance of resident organizations which
participate in the management of public housing developments,
(B) the training of residents to manage and operate the
public housing development and the utilization of their
services in management and operation of the development, (C)
counseling on household management, housekeeping, budgeting,
money management, homeownership issues, child care, and
similar matters, (D) advice regarding resources for job
training and placement, education, welfare, health, and other
community services, (E) services that are directly related to
meeting resident needs and providing a wholesome living
environment; and (F) referral to appropriate agencies in the
community when necessary for the provision of such services.
To the maximum extent available and appropriate, existing
public and private agencies in the community shall be used
for the provision of such services.
(25) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(26) State.--The term ``State'' means the States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana
Islands, Guam, the Virgin Islands, American Samoa, and any
other territory or possession of the United States and Indian
tribes.
(27) Very low-income family.--The term ``very low-income
family'' means a low-income family whose income does not
exceed 50 percent of the median family income for the area,
as determined by the Secretary with adjustments for smaller
and larger families, except that the Secretary may, for
purposes of this paragraph, establish income ceilings higher
or lower than 50 percent of the median for the area on the
basis of the public housing agency's findings that such
variations are necessary because of unusually high or low
family incomes.
SEC. 1103. ORGANIZATION OF PUBLIC HOUSING AGENCIES.
(a) Requirements.--For purposes of this division, the terms
``public housing agency'' and ``agency'' mean any entity
that--
(1) is--
(A) a public housing agency that was authorized under the
United States Housing Act of 1937 to engage in or assist in
the development or operation of low-income housing;
(B) authorized under this division to engage in or assist
in the development or operation of low-income housing by any
State, county, municipality, or other governmental body or
public entity;
(C) an entity authorized by State law to administer choice-
based housing assistance under title XIII; or
(D) an entity selected by the Secretary, pursuant to
subtitle D of title XV, to manage housing; and
(2) complies with the requirements under subsection (b).
The term does not include any entity that is an Indian
housing authority for purposes of the United States Housing
Act of 1937 (as in effect before the effectiveness of the
Native American Housing Assistance and Self-Determination Act
of 1996) or a tribally designated housing entity, as such
term is defined in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996.
(b) Governance.--
(1) Board of directors.--Each public housing agency shall
have a board of directors or other form of governance as
prescribed in State or local law. No person may
[[Page H5777]]
be barred from serving on such board or body because of such
person's residency in a public housing development or status
as an assisted family under title XIII.
(2) Resident membership.--
(A) In general.--Except as provided in subparagraph (B), in
localities in which a public housing agency is governed by a
board of directors or other similar body, the board or body
shall include not less than 1 member who is an elected public
housing resident member (as such term is defined in paragraph
(5)).
(B) Exceptions.--The requirement in subparagraph (A) with
respect to elected public housing resident members shall not
apply to--
(i) any State or local governing body that serves as a
public housing agency for purposes of this division and whose
responsibilities include substantial activities other than
acting as the public housing agency, except that such
requirement shall apply to any advisory committee or
organization that is established by such governing body and
whose responsibilities relate only to the governing body's
functions as a public housing agency for purposes of this
division;
(ii) any public housing agency that owns or operates less
than 250 public housing dwelling units (including any agency
that does not own or operate public housing); or
(iii) any public housing agency in a State that requires
the members of the board of directors or other similar body
of a public housing agency to be salaried and to serve on a
full-time basis.
(3) Full participation.--No public housing agency may limit
or restrict the capacity or offices in which a member of such
board or body may serve on such board or body solely because
of the member's status as a resident member.
(4) Conflicts of interest.--The Secretary shall establish
guidelines to prevent conflicts of interest on the part of
members of the board or directors or governing body of a
public housing agency.
(5) Definitions.--For purposes of this subsection, the
following definitions shall apply:
(A) Elected public housing resident member.--The term
``elected public housing resident member'' means, with
respect to the public housing agency involved, an individual
who is a resident member of the board of directors (or other
similar governing body of the agency) by reason of election
to such position pursuant to an election--
(i) in which eligibility for candidacy in such election is
limited to individuals who--
(I) maintain their principal residence in a dwelling unit
of public housing administered or assisted by the agency; and
(II) have not been convicted of a felony;
(ii) in which only residents of dwelling units of public
housing administered by the agency may vote; and
(iii) that is conducted in accordance with standards and
procedures for such election, which shall be established by
the Secretary.
(B) Resident member.--The term ``resident member'' means a
member of the board of directors or other similar governing
body of a public housing agency who is a resident of a public
housing dwelling unit owned, administered, or assisted by the
agency or is a member of an assisted family (as such term is
defined in section 1371) assisted by the agency.
(c) Establishment of Policies.--Any rules, regulations,
policies, standards, and procedures necessary to implement
policies required under section 1106 to be included in the
local housing management plan for a public housing agency
shall be approved by the board of directors or similar
governing body of the agency and shall be publicly available
for review upon request.
SEC. 1104. DETERMINATION OF ADJUSTED INCOME AND MEDIAN
INCOME.
(a) Adjusted Income.--For purposes of this division, the
term ``adjusted income'' means, with respect to a family, the
difference between the income of the members of the family
residing in a dwelling unit or the persons on a lease and the
amount of any income exclusions for the family under
subsections (b) and (c), as determined by the public housing
agency.
(b) Mandatory Exclusions From Income.--In determining
adjusted income, a public housing agency shall exclude from
the annual income of a family the following amounts:
(1) Elderly and disabled families.--$400 for any elderly or
disabled family.
(2) Medical expenses.--The amount by which 3 percent of the
annual family income is exceeded by the sum of--
(A) unreimbursed medical expenses of any elderly family;
(B) unreimbursed medical expenses of any nonelderly family,
except that this subparagraph shall apply only to the extent
approved in appropriation Acts; and
(C) unreimbursed reasonable attendant care and auxiliary
apparatus expenses for each handicapped member of the family,
to the extent necessary to enable any member of such family
(including such handicapped member) to be employed.
(3) Child care expenses.--Any reasonable child care
expenses necessary to enable a member of the family to be
employed or to further his or her education.
(4) Minors, students, and persons with disabilities.--$480
for each member of the family residing in the household
(other than the head of the household or his or her spouse)
who is less than 18 years of age or is attending school or
vocational training on a full-time basis, or who is 18 years
of age or older and is a person with disabilities.
(5) Child support payments.--Any payment made by a member
of the family for the support and maintenance of any child
who does not reside in the household, except that the amount
excluded under this paragraph may not exceed $480 for each
child for whom such payment is made.
(6) Earned income of minors.--The amount of any earned
income of a member of the family who is not--
(A) 18 years of age or older; and
(B) the head of the household (or the spouse of the head of
the household).
(c) Permissive Exclusions From Income.--In determining
adjusted income, a public housing agency may, in the
discretion of the agency, establish exclusions from the
annual income of a family. Such exclusions may include the
following amounts:
(1) Excessive travel expenses.--Excessive travel expenses
in an amount not to exceed $25 per family per week, for
employment- or education-related travel.
(2) Earned income.--An amount of any earned income of the
family, established at the discretion of the public housing
agency, which may be based on--
(A) all earned income of the family,
(B) the amount earned by particular members of the family;
(C) the amount earned by families having certain
characteristics; or
(D) the amount earned by families or members during certain
periods or from certain sources.
(3) Others.--Such other amounts for other purposes, as the
public housing agency may establish.
(d) Median Income.--In determining median incomes (of
persons, families, or households) for an area or establishing
any ceilings or limits based on income under this division,
the Secretary shall determine or establish area median
incomes and income ceilings and limits for Westchester and
Rockland Counties, in the State of New York, as if each such
county were an area not contained within the metropolitan
statistical area in which it is located. In determining such
area median incomes or establishing such income ceilings or
limits for the portion of such metropolitan statistical area
that does not include Westchester or Rockland Counties, the
Secretary shall determine or establish area median incomes
and income ceilings and limits as if such portion included
Westchester and Rockland Counties.
(e) Availability of Income Matching Information.--
(1) Disclosure to pha.--A public housing agency shall
require any family described in paragraph (2) who receives
information regarding income, earnings, wages, or
unemployment compensation from the Department of Housing and
Urban Development pursuant to income verification procedures
of the Department to disclose such information, upon receipt
of the information, to the public housing agency that owns or
operates the public housing dwelling unit in which such
family resides or that provides the housing assistance on
behalf of such family, as applicable.
(2) Applicability to families receiving public housing or
choice-based housing assistance.--A family described in this
paragraph is a family that resides in a dwelling unit--
(A) that is a public housing dwelling unit; or
(B) for which housing assistance is provided under title
XIII (or under the program for tenant-based assistance under
section 8 of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
1601(b) of this Act)).
(3) Protection of applicants and participants.--Section 904
of the Stewart B. McKinney Homeless Assistance Amendments Act
of 1988 (42 U.S.C. 3544) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``and'' at the end;
(iii) in paragraph (3), by striking the period at the end
and inserting ``; and''; and
(ii) by adding at the end the following new paragraph:
``(4) only in the case of an applicant or participant that
is a member of a family described in section 1104(e)(2) of
the Housing Opportunity and Responsibility Act of 1997, sign
an agreement under which the applicant or participant agrees
to provide to the appropriate public housing agency the
information required under such section 1104(e)(1) of the
Housing Opportunity and Responsibility Act of 1997 for the
sole purpose of the public housing agency verifying income
information pertinent to the applicant's or participant's
eligibility or level of benefits, and comply with such
agreement.''; and
(B) in subsection (c)--
(i) in paragraph (2)(A), in the matter preceding clause
(I)--
(I) by inserting before ``or'' the first place it appears
the following: ``, pursuant to section 1104(e)(1) of the
Housing Opportunity and Responsibility Act of 1997 from the
applicant or participant,''; and
(II) by inserting ``or 104(e)(1)'' after ``such section
303(i)''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by inserting ``, section
1104(e)(1) of the Housing Opportunity and Responsibility Act
of 1997,'' after ``Social Security Act''; and
(II) in subparagraph (A), by inserting ``or agreement, as
applicable,'' after ``consent'';
(III) in subparagraph (B), by inserting ``section
1104(e)(1) of the Housing Opportunity
[[Page H5778]]
and Responsibility Act of 1997,'' after ``Social Security
Act,''; and
(IV) in subparagraph (B), by inserting `` such section
1104(e)(1),'' after ``such section 303(i),'' each place it
appears.
SEC. 1105. COMMUNITY WORK AND FAMILY SELF-SUFFICIENCY
REQUIREMENTS.
(a) Community Work Requirement.--
(1) In general.--Except as provided in paragraph (3), each
public housing agency shall require, as a condition of
occupancy of a public housing dwelling unit by a family and
of providing housing assistance under title XIII on behalf of
a family, that each adult member of the family shall
contribute not less than 8 hours of work per month (not
including political activities) within the community in which
the family resides, which may include work performed on
locations not owned by the public housing agency.
(2) Employment status and liability.--The requirement under
paragraph (1) may not be construed to establish any
employment relationship between the public housing agency and
the member of the family subject to the work requirement
under such paragraph or to create any responsibility, duty,
or liability on the part of the public housing agency for
actions arising out of the work done by the member of the
family to comply with the requirement, except to the extent
that the member of the family is fulfilling the requirement
by working directly for such public housing agency.
(3) Exemptions.--A public housing agency shall provide for
the exemption, from the applicability of the requirement
under paragraph (1), of each individual who is--
(A) an elderly person;
(B) a person with disabilities;
(C) working, attending school or vocational training, or
otherwise complying with work requirements applicable under
other public assistance programs (as determined by the
agencies or organizations responsible for administering such
programs); or
(D) otherwise physically impaired to the extent that they
are unable to comply with the requirement, as certified by a
doctor.
(b) Requirement Regarding Target Date for Transition Out of
Assisted Housing.--
(1) In general.--Each public housing agency shall require,
as a condition of occupancy of a public housing dwelling unit
by a family and of providing housing assistance under title
XIII on behalf of a family, that the family and the agency
enter into an agreement (included, pursuant to subsection
(d)(2)(C), as a term of an agreement under subsection (d))
establishing a target date by which the family intends to
graduate from, terminate tenancy in, or no longer receive
public housing or housing assistance under title XIII.
(2) Rights of occupancy.--This subsection may not be
construed (nor may any provision of subsection (d) or (e)) to
create a right on the part of any public housing agency to
evict or terminate assistance for a family solely on the
basis of any failure of the family to comply with the target
date established pursuant to paragraph (1).
(3) Factors.--In establishing a target date pursuant to
paragraph (1) for a family that receives benefits for welfare
or public assistance from a State or other public agency
under a program that limits the duration during which such
benefits may be received, the public housing agency and the
family may take into consideration such time limit. This
section may not be construed to require any public housing
agency to adopt any such time limit on the duration of
welfare or public assistance benefits as the target date
pursuant to paragraph (1) for a resident.
(4) Exemptions.--A public housing agency shall provide for
the exemption, from the applicability of the requirements
under paragraph (1), of each individual who is--
(A) an elderly person;
(B) a person with disabilities;
(C) working, attending school or vocational training, or
otherwise complying with work requirements applicable under
other public assistance programs (as determined by the
agencies or organizations responsible for administering such
programs); or
(D) otherwise physically impaired to the extent that they
are unable to comply with the requirement, as certified by a
doctor.
(c) Treatment of Income Changes Resulting From Welfare
Program Requirements.--
(1) Covered family.--For purposes of this subsection, the
term ``covered family'' means a family that (A) receives
benefits for welfare or public assistance from a State or
other public agency under a program for which the Federal,
State, or local law relating to the program requires, as a
condition of eligibility for assistance under the program,
participation of a member of the family in an economic self-
sufficiency program, and (B) resides in a public housing
dwelling unit or is provided housing assistance under title
XIII.
(2) Decreases in income for failure to comply.--
Notwithstanding the provisions of sections 1225 and 1322
(relating to family rental contributions), if the welfare or
public assistance benefits of a covered family are reduced
under a Federal, State, or local law regarding such an
assistance program because of any failure of any member of
the family to comply with the conditions under the assistance
program requiring participation in an economic self-
sufficiency program, the amount required to be paid by the
family as a monthly contribution toward rent may not be
decreased, during the period of the reduction, as a result of
any decrease in the income of the family (to the extent that
the decrease in income is a result of the benefits
reduction).
(3) Effect of fraud.--Notwithstanding the provisions of
sections 1225 and 1322 (relating to family rental
contributions), if the welfare or public assistance benefits
of a covered family are reduced because of an act of fraud by
a member of the family under the law or program, the amount
required to be paid by the covered family as a monthly
contribution toward rent may not be decreased, during the
period of the reduction, as a result of any decrease in the
income of the family (to the extent that the decrease in
income is a result of the benefits reduction).
(4) Notice.--Paragraphs (2) and (3) shall not apply to any
covered family before the public housing agency providing
assistance under this division on behalf of the family
obtains written notification from the relevant welfare or
public assistance agency specifying that the family's
benefits have been reduced because of noncompliance with
economic self-sufficiency program requirements or fraud and
the level of such reduction.
(5) Occupancy rights.--This subsection may not be construed
to authorize any public housing agency to establish any time
limit on tenancy in a public housing dwelling unit or on
receipt of housing assistance under title XIII.
(6) Review.--Any covered family residing in public housing
that is affected by the operation of this subsection shall
have the right to review the determination under this
subsection through the administrative grievance procedure
established pursuant to section 1110 for the public housing
agency.
(7) Cooperation agreements for economic self-sufficiency
activities.--
(A) Requirement.--A public housing agency providing public
housing dwelling units or housing assistance under title XIII
for covered families shall make its best efforts to enter
into such cooperation agreements, with State, local, and
other agencies providing assistance to covered families under
welfare or public assistance programs, as may be necessary,
to provide for such agencies to transfer information to
facilitate administration of subsection (a) and paragraphs
(2), (3), and (4) of this subsection, and other information
regarding rents, income, and assistance that may assist a
public housing agency or welfare or public assistance agency
in carrying out its functions.
(B) Contents.--A public housing agency shall seek to
include in a cooperation agreement under this paragraph
requirements and provisions designed to target assistance
under welfare and public assistance programs to families
residing in public housing developments and receiving choice-
based assistance under title XIII, which may include
providing for self-sufficiency services within such housing,
providing for services designed to meet the unique
employment-related needs of residents of such housing and
recipients of such assistance, providing for placement of
workfare positions on-site in such housing, and such other
elements as may be appropriate.
(C) Confidentiality.--This paragraph may not be construed
to authorize any release of information that is prohibited
by, or in contravention of, any other provision of Federal,
State, or local law.
(d) Community Work and Family Self-Sufficiency
Agreements.--
(1) In general.--A public housing agency shall enter into a
community work and family self-sufficiency agreement under
this subsection with each adult member and head of household
of each family who is to reside in a dwelling unit in public
housing of the agency and each family on behalf of whom the
agency will provide housing assistance under title XIII.
Under the agreement the family shall agree that, as a
condition of occupancy of the public housing dwelling unit or
of receiving such housing assistance, the family will comply
with the terms of the agreement.
(2) Terms.--An agreement under this subsection shall
include the following:
(A) Terms designed to encourage and facilitate the economic
self-sufficiency of the assisted family entering into the
agreement and the graduation of the family from assisted
housing to unassisted housing.
(B) Notice of the requirements under subsection (a)
(relating to community work) and the conditions imposed by,
and exemptions from, such requirement.
(C) The target date agreed upon by the family pursuant to
subsection (b) for graduation from, termination of tenancy
in, or termination of receipt of public housing or housing
assistance under title XIII.
(D) Terms providing for any resources, services, and
assistance relating to self-sufficiency that will be made
available to the family, including any assistance to be made
available pursuant to subsection (c)(7)(B) under a
cooperation agreement entered into under subsection (c)(7).
(E) Notice of the provisions of paragraphs (2) through (7)
of subsection (c) (relating to effect of changes in income on
rent and assisted families rights under such circumstances).
(e) Lease Provisions.--A public housing agency shall
incorporate into leases under section 1226, and into any
agreements for the provision of choice-based assistance under
title XIII on behalf of a family--
(1) a provision requiring compliance with the requirement
under subsection (a); and
(2) provisions incorporating the conditions under
subsection (c).
[[Page H5779]]
(f) Treatment of Income.--Notwithstanding any other
provision of this section, in determining the income or
tenancy of a family who resides in public housing or receives
housing assistance under title XIII, a public housing agency
shall consider any decrease in the income of a family that
results from the reduction of any welfare or public
assistance benefits received by the family under any Federal,
State, or local law regarding a program for such assistance
if the family (or a member thereof, as applicable) has
complied with the conditions for receiving such assistance
and is unable to obtain employment notwithstanding such
compliance.
(g) Definition.--For purposes of this section, the term
``economic self-sufficiency program'' means any program
designed to encourage, assist, train, or facilitate the
economic independence of participants and their families or
to provide work for participants, including programs for job
training, employment counseling, work placement, basic skills
training, education, workfare, financial or household
management, apprenticeship, or other activities as the
Secretary may provide.
SEC. 1106. LOCAL HOUSING MANAGEMENT PLANS.
(a) 5-Year Plan.--The Secretary shall provide for each
public housing agency to submit to the Secretary, once every
5 years, a plan under this subsection for the agency covering
a period consisting of 5 fiscal years. Each such plan shall
contain, with respect to the 5-year period covered by the
plan, the following information:
(1) Statement of mission.--A statement of the mission of
the agency for serving the needs of low-income families in
the jurisdiction of the agency during such period.
(2) Goals and objectives.--A statement of the goals and
objectives of the agency that will enable the agency to serve
the needs identified pursuant to paragraph (1) during such
period.
(3) Capital improvement overview.--If the agency will
provide capital improvements for public housing developments
during such period, an overview of such improvements, the
rationale for such improvements, and an analysis of how such
improvements will enable the agency to meet its goals,
objectives, and mission.
The first 5-year plan under this subsection for a public
housing agency shall be submitted for the 5-year period
beginning with the first fiscal year for which the agency
receives assistance under this division.
(b) Annual Plan.--The Secretary shall provide for each
public housing agency to submit to the Secretary a local
housing management plan under this section for each fiscal
year that contains the information required under subsection
(d). For each fiscal year after the initial submission of a
plan under this section by a public housing agency, the
agency may comply with requirements for submission of a plan
under this subsection by submitting an update of the plan for
the fiscal year.
(c) Procedures.--The Secretary shall establish requirements
and procedures for submission and review of plans, including
requirements for timing and form of submission, and for the
contents of such plans. Such procedures shall provide that a
public housing agency--
(1) shall, in conjunction with the relevant State or unit
of general local government, establish procedures to ensure
that the plan under this section is consistent with the
applicable comprehensive housing affordability strategy (or
any consolidated plan incorporating such strategy) for the
jurisdiction in which the public housing agency is located,
in accordance with title I of the Cranston-Gonzalez National
Affordable Housing Act; and
(2) may, at the option of the agency, submit a plan under
this section together with, or as part of, the comprehensive
housing affordability strategy (or any consolidated plan
incorporating such strategy) for the relevant jurisdiction,
and for concomitant review of such plans submitted together.
(d) Contents.--An annual local housing management plan
under this section for a public housing agency shall contain
the following information relating to the upcoming fiscal
year for which the assistance under this division is to be
made available:
(1) Needs.--A statement of the housing needs of low-income
and very low-income families residing in the community served
by the agency, and of other low-income families on the
waiting list of the agency (including the housing needs of
elderly families and disabled families), and the means by
which the agency intends, to the maximum extent practicable,
to address such needs.
(2) Financial resources.--A statement of financial
resources available for the agency the planned uses of such
resources that includes--
(A) a description of the financial resources available to
the agency;
(B) the uses to which such resources will be committed,
including all proposed eligible and required activities under
section 1203 and housing assistance to be provided under
title XIII;
(C) an estimate of the costs of operation and the market
rental value of each public housing development; and
(D) a specific description, based on population and
demographic data, of the unmet affordable housing needs of
families in the community served by the agency having incomes
not exceeding 30 percent of the area median income and a
statement of how the agency will expend grant amounts
received under this division to meet the housing needs of
such families.
(3) Population served.--A statement of the policies of the
agency governing eligibility, admissions, and occupancy of
families with respect to public housing dwelling units and
housing assistance under title XIII, including--
(A) the requirements for eligibility for such units and
assistance and the method and procedures by which eligibility
and income will be determined and verified;
(B) the requirements for selection and admissions of
eligible families for such units and assistance, including
any preferences and procedures established by the agency and
any outreach efforts;
(C) the procedures for assignment of families admitted to
dwelling units owned, leased, managed, operated, or assisted
by the agency;
(D) any standards and requirements for occupancy of public
housing dwelling units and units assisted under title XIII,
including resident screening policies, standard lease
provisions, conditions for continued occupancy, termination
of tenancy, eviction, and conditions for termination of
housing assistance;
(E) the procedures for maintaining waiting lists for
admissions to public housing developments of the agency,
which may include a system of site-based waiting lists under
section 1224(c);
(F) the criteria for providing and denying housing
assistance under title XIII to families moving into the
jurisdiction of the agency;
(G) the procedures for coordination with entities providing
assistance to homeless families in the jurisdiction of the
agency; and
(H) the fair housing policy of the agency.
(4) Rent determination.--A statement of the policies of the
agency governing rents charged for public housing dwelling
units and rental contributions of assisted families under
title XIII and the system used by the agency to ensure that
such rents comply with the requirements of this division.
(5) Operation and management.--A statement of the rules,
standards, and policies of the public housing agency
governing maintenance and management of housing owned and
operated by the agency, and management of the public housing
agency and programs of the agency, including--
(A) a description of the manner in which the agency is
organized (including any consortia or joint ventures) and
staffed to perform the duties and functions of the public
housing agency and to administer the operating fund
distributions of the agency;
(B) policies relating to the rental of dwelling units,
including policies designed to reduce vacancies;
(C) housing quality standards in effect pursuant to
sections 1232 and 1328 and any certifications required under
such sections;
(D) emergency and disaster plans for public housing;
(E) priorities and improvements for management of public
housing, including initiatives to control costs; and
(F) policies of the agency requiring the loss or
termination of housing assistance and tenancy under sections
1641 and 1642 (relating to occupancy standards for federally
assisted housing).
(6) Grievance procedure.--A statement of the grievance
procedures of the agency under section 1110.
(7) Capital improvements.--With respect to public housing
developments owned or operated by the agency, a plan
describing the capital improvements necessary to ensure long-
term physical and social viability of the developments.
(8) Demolition and disposition.--With respect to public
housing developments owned or operated by the agency--
(A) a description of any such housing to be demolished or
disposed of under subtitle E of title XII; and
(B) a timetable for such demolition or disposition.
(9) Designation of housing for elderly and disabled
families.--With respect to public housing developments owned
or operated by the agency, a description of any developments
(or portions thereof) that the agency has designated or will
designate for occupancy by elderly and disabled families in
accordance with section 1227 and any information required
under section 1227(d) for such designated developments.
(10) Conversion of public housing.--With respect to public
housing owned or operated by the agency, a description of any
building or buildings that the agency is required, under
section 1203(b), to convert to housing assistance under title
XIII or that the agency voluntarily converts, an analysis of
such buildings required under such section for conversion,
and a statement of the amount of grant amounts under title
XII to be used for rental assistance or other housing
assistance.
(11) Homeownership activities.--A description of--
(A) any homeownership programs of the agency under subtitle
D of title XII or section 1329 for the agency;
(B) the requirements and assistance available under the
programs described pursuant to subparagraph (A); and
(C) the annual goals of the agency for additional
availability of homeownership units.
(12) Economic self-sufficiency and coordination with
welfare and other appropriate agencies.--A description of--
(A) policies relating to services and amenities provided or
offered to assisted families,
[[Page H5780]]
including the provision of service coordinators and services
designed for certain populations (such as the elderly and
disabled);
(B) how the agency will coordinate with State, local, and
other agencies providing assistance to families participating
in welfare or public assistance programs;
(C) how the agency will implement and administer section
1105; and
(D) any policies, programs, plans, and activities of the
agency for the enhancement of the economic and social self-
sufficiency of residents assisted by the programs of the
agency, including rent structures to encourage self-
sufficiency.
(13) Safety and crime prevention.--A plan established by
the public housing agency, which shall be subject to the
following requirements:
(A) Safety measures.--The plan shall provide, on a
development-by-development basis, for measures to ensure the
safety of public housing residents.
(B) Establishment.--The plan shall be established, with
respect to each development, in consultation with the police
officer or officers in command for the precinct in which the
development is located.
(C) Content.--The plan shall describe the need for measures
to ensure the safety of public housing residents and for
crime prevention measures, describe any such activities
conducted, or to be conducted, by the agency, and provide for
coordination between the public housing agency and the
appropriate police precincts for carrying out such measures
and activities.
(D) Secretarial action.--If the Secretary determines, at
any time, that the security needs of a development are not
being adequately addressed by the plan, or that the local
police precinct is not complying with the plan, the Secretary
may mediate between the public housing agency and the local
precinct to resolve any issues of conflict. If after such
mediation has occurred and the Secretary determines that the
security needs of the development are not adequately
addressed, the Secretary may require the public housing
agency to submit an amended plan.
(14) Annual audit.--The results of the most recent fiscal
year audit of the agency required under section 1541(b).
(15) Troubled agencies.--Such other additional information
as the Secretary may determine to be appropriate for each
public housing agency that is designated--
(A) under section 1533(c) as at risk of becoming troubled;
or
(B) under section 1533(a) as troubled.
(16) Asset management.--A statement of how the agency will
carry out its asset management functions with respect to the
public housing inventory of the agency, including how the
agency will plan for the long-term operating, capital
investment, rehabilitation, modernization, disposition, and
other needs for such inventory.
(e) Citizen Participation.--
(1) Publication of notice.--Not later than 45 days before
the date of a hearing conducted under paragraph (2) by the
governing body of a public housing agency, the agency shall--
(A) publish a notice informing the public that the proposed
local housing management plan or amendment is available for
inspection at the principal office of the public housing
agency during normal business hours and make the plan or
amendment so available for inspection during such period; and
(B) publish a notice informing the public that a public
hearing will be conducted to discuss the local housing
management plan and to invite public comment regarding that
plan.
(2) Public hearing.--Before submitting a plan under this
section or a significant amendment under section 1107(f) to a
plan, a public housing agency shall, at a location that is
convenient to residents, conduct a public hearing, as
provided in the notice published under paragraph (1),
regarding the public housing plan or the amendment of the
agency.
(3) Consideration of comments.--A public housing agency
shall consider any comments or views made available pursuant
to paragraphs (1) and (2) in preparing a final plan or
amendment for submission to the Secretary. A summary of such
comments or views shall be attached to the plan, amendment,
or report submitted.
(4) Adoption of plan.--After conducting the public hearing
under paragraph (2) and considering public comments in
accordance with paragraph (3), the public housing agency
shall make any appropriate changes to the local housing
management plan or amendment and shall--
(A) adopt the local housing management plan;
(B) submit the plan to any local elected official or
officials responsible for appointing the members of the board
of directors (or other similar governing body) of the public
housing agency for review and approval under subsection (f);
(C) submit the plan to the Secretary in accordance with
this section; and
(D) make the submitted plan or amendment publicly
available.
(f) Local Review.--The public housing agency shall submit a
plan under this subsection to any local elected official or
officials responsible for appointing the members of the board
of directors (or other similar governing body) of the public
housing agency for review and approval for a 45-day period
beginning on the date that the plan is submitted to such
local official or officials (which period may run
concurrently with any period under subsection (e) for public
comment). If the local official or officials responsible
under this subsection do not act within 45 days of submission
of the plan, the plan shall be considered approved. If the
local official or officials responsible under this subsection
reject the public housing agency's plan, they shall return
the plan with their recommended changes to the agency within
5 days of their disapproval. The agency shall resubmit an
updated plan to the local official or officials within 30
days of receiving the objections, If the local official or
officials again reject the plan, the resubmitted plan,
together with the local official's objections, shall be
submitted to the Secretary for approval.
(g) Plans for Small PHA's and PHA's Administering Only
Rental Assistance.--The Secretary shall establish
requirements for submission of plans under this section and
the information to be included in such plans applicable to
public housing agencies that own or operate less than 250
public housing dwelling units and shall establish
requirements for such submission and information applicable
to agencies that only administer housing assistance under
title XIII (and do not own or operate public housing). Such
requirements shall waive any requirements under this section
that the Secretary determines are burdensome or unnecessary
for such agencies.
SEC. 1107. REVIEW OF PLANS.
(a) Review and Notice.--
(1) Review.--The Secretary shall conduct a limited review
of each local housing management plan submitted to the
Secretary to ensure that the plan is complete and complies
with the requirements of section 1106. The Secretary shall
have the discretion to review a plan to the extent that the
Secretary considers review is necessary.
(2) Notice.--The Secretary shall notify each public housing
agency submitting a plan whether the plan complies with such
requirements not later than 75 days after receiving the plan.
If the Secretary does not notify the public housing agency,
as required under this subsection and subsection (b), the
Secretary shall be considered, for purposes of this division,
to have made a determination that the plan complies with the
requirements under section 1106 and the agency shall be
considered to have been notified of compliance upon the
expiration of such 75-day period. The preceding sentence
shall not preclude judicial review regarding such compliance
pursuant to chapter 7 of title 5, United States Code, or an
action regarding such compliance under section 1979 of the
Revised Statutes of the United States (42 U.S.C. 1983).
(b) Notice of Reasons for Determination of Noncompliance.--
If the Secretary determines that a plan, as submitted, does
not comply with the requirements under section 1106, the
Secretary shall specify in the notice under subsection (a)
the reasons for the noncompliance and any modifications
necessary for the plan to meet the requirements under section
1106.
(c) Standards for Determination of Noncompliance.--The
Secretary may determine that a plan does not comply with the
requirements under section 1106 only if--
(1) the plan is incomplete in significant matters required
under such section;
(2) there is evidence available to the Secretary that
challenges, in a substantial manner, any information provided
in the plan;
(3) the Secretary determines that the plan does not comply
with Federal law or violates the purposes of this division
because it fails to provide housing that will be viable on a
long-term basis at a reasonable cost;
(4) the plan plainly fails to adequately identify the needs
of low-income families for housing assistance in the
jurisdiction of the agency;
(5) the plan plainly fails to adequately identify the
capital improvement needs for public housing developments in
the jurisdiction of the agency;
(6) the activities identified in the plan are plainly
inappropriate to address the needs identified in the plan; or
(7) the plan is inconsistent with the requirements of this
division.
The Secretary shall determine that a plan does not comply
with the requirements under section 1106 if the plan does not
include the information required under section 1106(d)(2)(D).
(d) Treatment of Existing Plans.--Notwithstanding any other
provision of this title, a public housing agency shall be
considered to have submitted a plan under this section if the
agency has submitted to the Secretary a comprehensive plan
under section 14(e) of the United States Housing Act of 1937
(as in effect immediately before the effective date of the
repeal under section 1601(b) of this Act) or under the
comprehensive improvement assistance program under such
section 14, and the Secretary has approved such plan, before
January 1, 1997. The Secretary shall provide specific
procedures and requirements for such authorities to amend
such plans by submitting only such additional information as
is necessary to comply with the requirements of section 1106.
(e) Actions To Change Plan.--A public housing agency that
has submitted a plan under section 1106 may change actions or
policies described in the plan before submission and review
of the plan of the agency for the next fiscal year only if--
[[Page H5781]]
(1) in the case of costly or nonroutine changes, the agency
submits to the Secretary an amendment to the plan under
subsection (f) which is reviewed in accordance with such
subsection; or
(2) in the case of inexpensive or routine changes, the
agency describes such changes in such local housing
management plan for the next fiscal year.
(f) Amendments to Plan.--
(1) In general.--During the annual or 5-year period covered
by the plan for a public housing agency, the agency may
submit to the Secretary any amendments to the plan.
(2) Review.--The Secretary shall conduct a limited review
of each proposed amendment submitted under this subsection to
determine whether the plan, as amended by the amendment,
complies with the requirements of section 1106 and notify
each public housing agency submitting the amendment whether
the plan, as amended, complies with such requirements not
later than 30 days after receiving the amendment. If the
Secretary determines that a plan, as amended, does not comply
with the requirements under section 1106, such notice shall
indicate the reasons for the noncompliance and any
modifications necessary for the plan to meet the requirements
under section 1106. If the Secretary does not notify the
public housing agency as required under this paragraph, the
plan, as amended, shall be considered, for purposes of this
section, to comply with the requirements under section 1106.
(3) Standards for determination of noncompliance.--The
Secretary may determine that a plan, as amended by a proposed
amendment, does not comply with the requirements under
section 1106 only if--
(A) the plan, as amended, would be subject to a
determination of noncompliance in accordance with the
provisions of subsection (c);
(B) the Secretary determines that--
(i) the proposed amendment is plainly inconsistent with the
activities specified in the plan; or
(ii) there is evidence that challenges, in a substantial
manner, any information contained in the amendment; or
(C) the Secretary determines that the plan, as amended,
violates the purposes of this division because it fails to
provide housing that will be viable on a long-term basis at a
reasonable cost.
(4) Amendments to extend time of performance.--
Notwithstanding any other provision of this subsection, the
Secretary may not determine that any amendment to the plan of
a public housing agency that extends the time for performance
of activities assisted with amounts provided under this title
fails to comply with the requirements under section 1106 if
the Secretary has not provided the amount of assistance set
forth in the plan or has not provided the assistance in a
timely manner.
SEC. 1108. REPORTING REQUIREMENTS.
(a) Performance and Evaluation Report.--Each public housing
agency shall annually submit to the Secretary, on a date
determined by the Secretary, a performance and evaluation
report concerning the use of funds made available under this
division. The report of the public housing agency shall
include an assessment by the agency of the relationship of
such use of funds made available under this division, as well
as the use of other funds, to the needs identified in the
local housing management plan and to the purposes of this
division. The public housing agency shall certify that the
report was available for review and comment by affected
tenants prior to its submission to the Secretary.
(b) Review of PHA's.--The Secretary shall, at least on an
annual basis, make such reviews as may be necessary or
appropriate to determine whether each public housing agency
receiving assistance under this section--
(1) has carried out its activities under this division in a
timely manner and in accordance with its local housing
management plan; and
(2) has a continuing capacity to carry out its local
housing management plan in a timely manner.
(c) Records.--Each public housing agency shall collect,
maintain, and submit to the Secretary such data and other
program records as the Secretary may require, in such form
and in accordance with such schedule as the Secretary may
establish.
SEC. 1109. PET OWNERSHIP.
Pet ownership in housing assisted under this division that
is federally assisted rental housing (as such term is defined
in section 227 of the Housing and Urban-Rural Recovery Act of
1983) shall be governed by the provisions of section 227 of
such Act.
SEC. 1110. ADMINISTRATIVE GRIEVANCE PROCEDURE.
(a) Requirements.--Each public housing agency receiving
assistance under this division shall establish and implement
an administrative grievance procedure under which residents
of public housing will--
(1) be advised of the specific grounds of any proposed
adverse public housing agency action;
(2) have an opportunity for a hearing before an impartial
party (including appropriate employees of the public housing
agency) upon timely request within a reasonable period of
time;
(3) have an opportunity to examine any documents or records
or regulations related to the proposed action;
(4) be entitled to be represented by another person of
their choice at any hearing;
(5) be entitled to ask questions of witnesses and have
others make statements on their behalf; and
(6) be entitled to receive a written decision by the public
housing agency on the proposed action.
(b) Exclusion From Administrative Procedure of Grievances
Concerning Evictions From Public Housing Involving Health,
Safety, or Peaceful Enjoyment.--A public housing agency may
exclude from its procedure established under subsection (a)
any grievance, in any jurisdiction which requires that prior
to eviction, a tenant be given a hearing in court, which the
Secretary determines provides the basic elements of due
process (which the Secretary shall establish by rule under
section 553 of title 5, United States Code), concerning an
eviction from or termination of tenancy in public housing
that involves any activity that threatens the health, safety,
or right to peaceful enjoyment of the premises of other
tenants or employees of the public housing agency or any
drug-related criminal activity on or off such premises. In
the case of any eviction from or termination of tenancy in
public housing not described in the preceding sentence, each
of the following provisions shall apply:
(1) Such eviction or termination shall be subject to an
administrative grievance procedure if the tenant so evicted
or terminated requests a hearing under such procedure not
later than five days after service of notice of such eviction
or termination.
(2) The public housing agency shall take final action
regarding a grievance under paragraph (1) not later than
thirty days after such notice is served.
(3) If the public housing agency fails to provide a hearing
under the grievance procedure pursuant to a request under
paragraph (1) and take final action regarding the grievance
before the expiration of the 30-day period under paragraph
(2), the notice of eviction or termination shall be
considered void and shall not be given any force or effect.
(4) If a public housing authority takes final action on a
grievance for any eviction or termination, the tenant and any
member of the tenant's household shall not have any right in
connection with any subsequent eviction or termination notice
to request or be afforded any administrative grievance
hearing during the 1-year period beginning upon the date of
the final action.
(c) Inapplicability to Choice-Based Rental Housing
Assistance.--This section may not be construed to require any
public housing agency to establish or implement an
administrative grievance procedure with respect to assisted
families under title XIII.
SEC. 1111. HEADQUARTERS RESERVE FUND.
(a) Annual Reservation of Amounts.--Notwithstanding any
other provision of law, the Secretary may retain not more
than 2 percent of the amounts appropriated to carry out title
XII for any fiscal year for use in accordance with this
section.
(b) Use of Amounts.--Any amounts that are retained under
subsection (a) or appropriated for use under this section
shall be available for subsequent allocation to specific
areas and communities, and may only be used for the
Department of Housing and Urban Development and--
(1) for unforeseen housing needs resulting from natural and
other disasters;
(2) for housing needs resulting from emergencies, as
determined by the Secretary, other than such disasters;
(3) for housing needs related to a settlement of
litigation, including settlement of fair housing litigation;
and
(4) for needs related to the Secretary's actions under this
division regarding troubled and at-risk public housing
agencies.
Housing needs under this subsection may be met through the
provision of assistance in accordance with title XII or title
XIII, or both.
SEC. 1112. LABOR STANDARDS.
(a) In General.--Any contract for grants, sale, or lease
pursuant to this division relating to public housing shall
contain the following provisions:
(1) Operation.--A provision requiring that not less than
the wages prevailing in the locality, as determined or
adopted (subsequent to a determination under applicable State
or local law) by the Secretary, shall be paid to all
contractors and persons employed in the operation of the low-
income housing development involved.
(2) Production.--A provision that not less than the wages
prevailing in the locality, as predetermined by the Secretary
of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a--
276a-5), shall be paid to all laborers and mechanics employed
in the production of the development involved.
The Secretary shall require certification as to compliance
with the provisions of this section before making any payment
under such contract.
(b) Exceptions.--Subsection (a) and the provisions relating
to wages (pursuant to subsection (a)) in any contract for
grants, sale, or lease pursuant to this division relating to
public housing, shall not apply to any individual who--
(1) performs services for which the individual volunteered;
(2)(A) does not receive compensation for such services; or
(B) is paid expenses, reasonable benefits, or a nominal fee
for such services; and
(3) is not otherwise employed at any time in the
construction work.
[[Page H5782]]
SEC. 1113. NONDISCRIMINATION.
(a) In General.--No person in the United States shall on
the grounds of race, color, national origin, religion, or sex
be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or
activity funded in whole or in part with amounts made
available under this division. Any prohibition against
discrimination on the basis of age under the Age
Discrimination Act of 1975 or with respect to an otherwise
qualified handicapped individual as provided in section 504
of the Rehabilitation Act of 1973 shall also apply to any
such program or activity.
(b) Civil Rights Compliance.--Each public housing agency
that receives grant amounts under this division shall use
such amounts and carry out its local housing management plan
approved under section 1107 in conformity with title VI of
the Civil Rights Act of 1964, the Fair Housing Act, section
504 of the Rehabilitation Act of 1973, the Age Discrimination
Act of 1975, and the Americans With Disabilities Act of 1990,
and shall affirmatively further fair housing.
SEC. 1114. PROHIBITION ON USE OF FUNDS.
None of the funds made available to the Department of
Housing and Urban Development to carry out this division,
which are obligated to State or local governments, public
housing agencies, housing finance agencies, or other public
or quasi-public housing agencies, shall be used to indemnify
contractors or subcontractors of the government or agency
against costs associated with judgments of infringement of
intellectual property rights.
SEC. 1115. INAPPLICABILITY TO INDIAN HOUSING.
Except as specifically provided by law, the provisions of
this title, and titles XII, XIII, XIV, and XV shall not apply
to public housing developed or operated pursuant to a
contract between the Secretary and an Indian housing
authority under the United States Housing Act of 1937 or to
housing assisted under the Native American Housing Assistance
and Self-Determination Act of 1996.
SEC. 1116. REGULATIONS.
(a) In General.--The Secretary may issue any regulations
necessary to carry out this division. This subsection shall
take effect on the date of the enactment of this Act.
(b) Rule of Construction.--Any failure by the Secretary to
issue any regulations authorized under subsection (a) shall
not affect the effectiveness of any provision of this
division or any amendment made by this division.
TITLE XII--PUBLIC HOUSING
Subtitle A--Block Grants
SEC. 1201. BLOCK GRANT CONTRACTS.
(a) In General.--The Secretary shall enter into contracts
with public housing agencies under which--
(1) the Secretary agrees to make a block grant under this
title, in the amount provided under section 1202(c), for
assistance for low-income housing to the public housing
agency for each fiscal year covered by the contract; and
(2) the agency agrees--
(A) to provide safe, clean, and healthy housing that is
affordable to low-income families and services for families
in such housing;
(B) to operate, or provide for the operation, of such
housing in a financially sound manner;
(C) to use the block grant amounts in accordance with this
title and the local housing management plan for the agency
that complies with the requirements of section 1106;
(D) to involve residents of housing assisted with block
grant amounts in functions and decisions relating to
management and the quality of life in such housing;
(E) that the management of the public housing of the agency
shall be subject to actions authorized under subtitle D of
title XV;
(F) that the Secretary may take actions under section 1205
with respect to improper use of grant amounts provided under
the contract; and
(G) to otherwise comply with the requirements under this
title.
(b) Small Public Housing Agency Capital Grant Option.--For
any fiscal year, upon the request of the Governor of the
State, the Secretary shall make available directly to the
State, from the amounts otherwise included in the block
grants for all public housing agencies in such State which
own or operate less than 100 dwelling units, \1/2\ of that
portion of such amounts that is derived from the capital
improvement allocations for such agencies pursuant to section
1203(c)(1) or 1203(d)(2), as applicable. The Governor of the
State will have the responsibility to distribute all of such
funds, in amounts determined by the Governor, only to meet
the exceptional capital improvement requirements for the
various public housing agencies in the State which operate
less than 100 dwelling units: Provided, however, that for
States where Federal funds provided to the State are subject
to appropriation action by the State legislature, the capital
funds made available to the Governor under this subsection
shall be subject to such appropriation by the State
legislature.
(c) Modification.--Contracts and agreements between the
Secretary and a public housing agency may not be amended in a
manner which would--
(1) impair the rights of--
(A) leaseholders for units assisted pursuant to a contract
or agreement; or
(B) the holders of any outstanding obligations of the
public housing agency involved for which annual contributions
have been pledged; or
(2) provide for payment of block grant amounts under this
title in an amount exceeding the allocation for the agency
determined under section 1204.
Any rule of law contrary to this subsection shall be deemed
inapplicable.
SEC. 1202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.
(a) Authority.--The Secretary shall make block grants under
this title to eligible public housing agencies in accordance
with block grant contracts under section 1201.
(b) Performance Funds.--
(1) In general.--The Secretary shall establish 2 funds for
the provision of grants to eligible public housing agencies
under this title, as follows:
(A) Capital fund.--A capital fund to provide capital and
management improvements to public housing developments.
(B) Operating fund.--An operating fund for public housing
operations.
(2) Flexibility of funding.--
(A) In general.--A public housing agency may use up to 20
percent of the amounts from a grant under this title that are
allocated and provided from the capital fund for activities
that are eligible under section 1203(a)(2) to be funded with
amounts from the operating fund.
(B) Full flexibility for small pha's.--In the case of a
public housing agency that owns or operates less than 250
public housing dwelling units and is (in the determination of
the Secretary) operating and maintaining its public housing
in a safe, clean, and healthy condition, the agency may use
amounts from a grant under this title for any eligible
activities under section 1203(a), regardless of the fund from
which the amounts were allocated and provided.
(c) Amount of Grants.--The amount of the grant under this
title for a public housing agency for a fiscal year shall be
the amount of the allocation for the agency determined under
section 1204, except as otherwise provided in this title and
title XV.
(d) Eligibility.--A public housing agency shall be an
eligible public housing agency with respect to a fiscal year
for purposes of this title only if--
(1) the Secretary has entered into a block grant contract
with the agency;
(2) the agency has submitted a local housing management
plan to the Secretary for such fiscal year;
(3) the plan has been determined to comply with the
requirements under section 1106 and the Secretary has not
notified the agency that the plan fails to comply with such
requirements;
(4) the agency is exempt from local taxes, as provided
under subsection (e), or receives a contribution, as provided
under such subsection;
(5) no member of the board of directors or other governing
body of the agency, or the executive director, has been
convicted of a felony;
(6) the agency has entered into an agreement providing for
local cooperation in accordance with subsection (f); and
(7) the agency has not been disqualified for a grant
pursuant to section 1205(a) or title XV.
(e) Payments in Lieu of State and Local Taxation of Public
Housing Developments.--
(1) Exemption from taxation.--A public housing agency may
receive a block grant under this title only if--
(A)(i) the developments of the agency (exclusive of any
portions not assisted with amounts provided under this title)
are exempt from all real and personal property taxes levied
or imposed by the State, city, county, or other political
subdivision; and
(ii) the public housing agency makes payments in lieu of
taxes to such taxing authority equal to 10 percent of the
sum, for units charged in the developments of the agency, of
the difference between the gross rent and the utility cost,
or such lesser amount as is--
(I) prescribed by State law;
(II) agreed to by the local governing body in its agreement
under subsection (f) for local cooperation with the public
housing agency or under a waiver by the local governing body;
or
(III) due to failure of a local public body or bodies other
than the public housing agency to perform any obligation
under such agreement; or
(B) the agency complies with the requirements under
subparagraph (A) with respect to public housing developments
(including public housing units in mixed-income
developments), but the agency agrees that the units other
than public housing units in any mixed-income developments
(as such term is defined in section 1221(c)(2)) shall be
subject to any otherwise applicable real property taxes
imposed by the State, city, county or other political
subdivision.
(2) Effect of failure to exempt from taxation.--
Notwithstanding paragraph (1), a public housing agency that
does not comply with the requirements under such paragraph
may receive a block grant under this title, but only if the
State, city, county, or other political subdivision in which
the development is situated contributes, in the form of cash
or tax remission, the amount by which the taxes paid with
respect to the development exceed 10 percent of the gross
rent and utility cost charged in the development.
(f) Local Cooperation.--In recognition that there should be
local determination of the need for low-income housing to
meet
[[Page H5783]]
needs not being adequately met by private enterprise, the
Secretary may not make any grant under this title to a public
housing agency unless the governing body of the locality
involved has entered into an agreement with the agency
providing for the local cooperation required by the Secretary
pursuant to this title. The Secretary shall require that each
such agreement for local cooperation shall provide that,
notwithstanding any order, judgment, or decree of any court
(including any settlement order), before making any amounts
provided under a grant under this title available for use for
the production of any housing or other property not
previously used as public housing, the public housing agency
shall--
(1) notify the chief executive officer (or other
appropriate official) of the unit of general local government
in which the public housing for which such amounts are to be
so used is located (or to be located) of such use; and
(2) pursuant to the request of such unit of general local
government, provide such information as may reasonably be
requested by such unit of general local government regarding
the public housing to be so assisted (except to the extent
otherwise prohibited by law) and consult with representatives
of such local government regarding the public housing.
(g) Exception.--Notwithstanding subsection (a), the
Secretary may make a grant under this title for a public
housing agency that is not an eligible public housing agency
but only for the period necessary to secure, in accordance
with this title, an alternative public housing agency for the
public housing of the ineligible agency.
(h) Recapture of Capital Assistance Amounts.--The Secretary
may recapture, from any grant amounts made available to a
public housing agency from the capital fund, any portion of
such amounts that are not used or obligated by the public
housing agency for use for eligible activities under section
1203(a)(1) (or dedicated for use pursuant to section
1202(b)(2)(A)) before the expiration of the 24-month period
beginning upon the award of such grant to the agency.
SEC. 1203. ELIGIBLE AND REQUIRED ACTIVITIES.
(a) Eligible Activities.--Except as provided in subsection
(b) and in section 1202(b)(2), grant amounts allocated and
provided from the capital fund and grant amounts allocated
and provided from the operating fund may be used for the
following activities:
(1) Capital fund activities.--Grant amounts from the
capital fund may be used for--
(A) the production and modernization of public housing
developments, including the redesign, reconstruction, and
reconfiguration of public housing sites and buildings and the
production of mixed-income developments;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and the
replacement of dwelling equipment;
(D) planned code compliance;
(E) management improvements;
(F) demolition and replacement under section 1261;
(G) tenant relocation;
(H) capital expenditures to facilitate programs to improve
the economic empowerment and self-sufficiency of public
housing tenants; and
(I) capital expenditures to improve the security and safety
of residents.
(2) Operating fund activities.--Grant amounts from the
operating fund may be used for--
(A) procedures and systems to maintain and ensure the
efficient management and operation of public housing units;
(B) activities to ensure a program of routine preventative
maintenance;
(C) anti-crime and anti-drug activities, including the
costs of providing adequate security for public housing
tenants;
(D) activities related to the provision of services,
including service coordinators for elderly persons or persons
with disabilities and including child care services for
public housing residents;
(E) activities to provide for management and participation
in the management of public housing by public housing
tenants;
(F) the costs associated with the operation and management
of mixed-income developments;
(G) the costs of insurance;
(H) the energy costs associated with public housing units,
with an emphasis on energy conservation;
(I) the costs of administering a public housing community
work program under section 1105, including the costs of any
related insurance needs; and
(J) activities in connection with a homeownership program
for public housing residents under subtitle D, including
providing financing or assistance for purchasing housing, or
the provision of financial assistance to resident management
corporations or resident councils to obtain training,
technical assistance, and educational assistance to promote
homeownership opportunities.
(b) Required Conversion of Assistance for Public Housing to
Rental Housing Assistance.--
(1) Requirement.--A public housing agency that receives
grant amounts under this title shall provide assistance in
the form of rental housing assistance under title XIII, or
appropriate site revitalization or other appropriate capital
improvements approved by the Secretary, in lieu of assisting
the operation and modernization of any building or buildings
of public housing, if the agency provides sufficient evidence
to the Secretary that the building or buildings--
(A) are on the same or contiguous sites;
(B) consist of more than 300 dwelling units;
(C) have a vacancy rate of at least 10 percent for dwelling
units not in funded, on-schedule modernization programs;
(D) are identified as distressed housing for which the
public housing agency cannot assure the long-term viability
as public housing through reasonable revitalization, density
reduction, or achievement of a broader range of household
income; and
(E) have an estimated cost of continued operation and
modernization as public housing that exceeds the cost of
providing choice-based rental assistance under title XIII for
all families in occupancy, based on appropriate indicators of
cost (such as the percentage of the total development cost
required for modernization).
Public housing agencies shall identify properties that meet
the definition of subparagraphs (A) through (E) and shall
consult with the appropriate public housing residents and the
appropriate unit of general local government in identifying
such properties.
(2) Use of other amounts.--In addition to grant amounts
under this title attributable (pursuant to the formulas under
section 1204) to the building or buildings identified under
paragraph (1), the Secretary may use amounts provided in
appropriation Acts for choice-based housing assistance under
title XIII for families residing in such building or
buildings or for appropriate site revitalization or other
appropriate capital improvements approved by the Secretary.
(3) Enforcement.--The Secretary shall take appropriate
action to ensure conversion of any building or buildings
identified under paragraph (1) and any other appropriate
action under this subsection, if the public housing agency
fails to take appropriate action under this subsection.
(4) Failure of pha's to comply with conversion
requirement.--If the Secretary determines that--
(A) a public housing agency has failed under paragraph (1)
to identify a building or buildings in a timely manner,
(B) a public housing agency has failed to identify one or
more buildings which the Secretary determines should have
been identified under paragraph (1), or
(C) one or more of the buildings identified by the public
housing agency pursuant to paragraph (1) should not, in the
determination of the Secretary, have been identified under
that paragraph,
the Secretary may identify a building or buildings for
conversion and take other appropriate action pursuant to this
subsection.
(5) Cessation of unnecessary spending.--Notwithstanding any
other provision of law, if, in the determination of the
Secretary, a building or buildings meets or is likely to meet
the criteria set forth in paragraph (1), the Secretary may
direct the public housing agency to cease additional spending
in connection with such building or buildings, except to the
extent that additional spending is necessary to ensure safe,
clean, and healthy housing until the Secretary determines or
approves an appropriate course of action with respect to such
building or buildings under this subsection.
(6) Use of budget authority.--Notwithstanding any other
provision of law, if a building or buildings are identified
pursuant to paragraph (1), the Secretary may authorize or
direct the transfer, to the choice-based or tenant-based
assistance program of such agency or to appropriate site
revitalization or other capital improvements approved by the
Secretary, of--
(A) in the case of an agency receiving assistance under the
comprehensive improvement assistance program, any amounts
obligated by the Secretary for the modernization of such
building or buildings pursuant to section 14 of the United
States Housing Act of 1937 (as in effect immediately before
the effective date of the repeal under section 1601(b));
(B) in the case of an agency receiving public housing
modernization assistance by formula pursuant to such section
14, any amounts provided to the agency which are attributable
pursuant to the formula for allocating such assistance to
such building or buildings;
(C) in the case of an agency receiving assistance for the
major reconstruction of obsolete projects, any amounts
obligated by the Secretary for the major reconstruction of
such building or buildings pursuant to section 5(j)(2) of the
United States Housing Act of 1937, as in effect immediately
before the effective date of the repeal under section
1601(b); and
(D) in the case of an agency receiving assistance pursuant
to the formulas under section 1204, any amounts provided to
the agency which are attributable pursuant to the formulas
for allocating such assistance to such building or buildings.
(7) Relocation requirements.--Any public housing agency
carrying out conversion of public housing under this
subsection shall--
(A) notify the families residing in the public housing
development subject to the conversion, in accordance with any
guidelines issued by the Secretary governing such
notifications, that--
(i) the development will be removed from the inventory of
the public housing agency; and
(ii) the families displaced by such action will receive
choice-based housing assistance
[[Page H5784]]
or occupancy in a unit operated or assisted by the public
housing agency;
(B) ensure that each family that is a resident of the
development is relocated to other safe, clean, and healthy
affordable housing, which is, to the maximum extent
practicable, housing of the family's choice, including
choice-based assistance under title XIII (provided that with
respect to choice-based assistance, the preceding requirement
shall be fulfilled only upon the relocation of such family
into such housing);
(C) provide any necessary counseling for families displaced
by such action to facilitate relocation; and
(D) provide any reasonable relocation expenses for families
displaced by such action.
(8) Transition.--Any amounts made available to a public
housing agency to carry out section 202 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (enacted as
section 101(e) of the Omnibus Consolidated Rescissions and
Appropriations Act of 1996 (Public Law 104-134; 110 Stat.
1321-279)) may be used, to the extent or in such amounts as
are or have been provided in advance in appropriation Acts,
to carry out this section. The Secretary shall provide for
public housing agencies to conform and continue actions taken
under such section 202 in accordance with the requirements
under this section.
(c) Extension of Deadlines.--The Secretary may, for a
public housing agency, extend any deadline established
pursuant to this section or a local housing management plan
for up to an additional 5 years if the Secretary makes a
determination that the deadline is impracticable.
(d) Compliance With Plan.--The local housing management
plan submitted by a public housing agency (including any
amendments to the plan), unless determined under section 1107
not to comply with the requirements under section 1106, shall
be binding upon the Secretary and the public housing agency
and the agency shall use any grant amounts provided under
this title for eligible activities under subsection (a) in
accordance with the plan. This subsection may not be
construed to preclude changes or amendments to the plan, as
authorized under section 1107 or any actions authorized by
this division to be taken without regard to a local housing
management plan.
(e) Eligible Activities for Increased Income.--Any public
housing agency that derives increased nonrental or rental
income, as referred to in subsection (c)(2)(B) or (d)(1)(D)
of section 1204 or pursuant to provision of mixed-income
developments under section 1221(c)(2), may use such amounts
for any eligible activity under paragraph (1) or (2) of
subsection (a) of this section or for providing choice-based
housing assistance under title XIII.
SEC. 1204. DETERMINATION OF GRANT ALLOCATION.
(a) In General.--For each fiscal year, after reserving
amounts under section 1111 from the aggregate amount made
available for the fiscal year for carrying out this title,
the Secretary shall allocate any remaining amounts among
eligible public housing agencies in accordance with this
section, so that the sum of all of the allocations for all
eligible authorities is equal to such remaining amount.
(b) Allocation Amount.--The Secretary shall determine the
amount of the allocation for each eligible public housing
agency, which shall be--
(1) for any fiscal year beginning after the enactment of a
law containing the formulas described in paragraphs (1) and
(2) of subsection (c), the sum of the amounts determined for
the agency under each such formula; or
(2) for any fiscal year beginning before the expiration of
such period, the sum of--
(A) the operating allocation determined under subsection
(d)(1) for the agency; and
(B) the capital improvement allocation determined under
subsection (d)(2) for the agency.
(c) Permanent Allocation Formulas for Capital and Operating
Funds.--
(1) Establishment of capital fund formula.--The formula
under this paragraph shall provide for allocating assistance
under the capital fund for a fiscal year. The formula may
take into account such factors as--
(A) the number of public housing dwelling units owned or
operated by the public housing agency, the characteristics
and locations of the developments, and the characteristics of
the families served and to be served (including the incomes
of the families);
(B) the need of the public housing agency to carry out
rehabilitation and modernization activities, and
reconstruction, production, and demolition activities related
to public housing dwelling units owned or operated by the
public housing agency, including backlog and projected future
needs of the agency;
(C) the cost of constructing and rehabilitating property in
the area; and
(D) the need of the public housing agency to carry out
activities that provide a safe and secure environment in
public housing units owned or operated by the public housing
agency.
(2) Establishment of operating fund formula.--
(A) In general.--The formula under this paragraph shall
provide for allocating assistance under the operating fund
for a fiscal year. The formula may take into account such
factors as--
(i) standards for the costs of operating and reasonable
projections of income, taking into account the
characteristics and locations of the public housing
developments and characteristics of the families served and
to be served (including the incomes of the families), or the
costs of providing comparable services as determined in
accordance with criteria or a formula representing the
operations of a prototype well-managed public housing
development;
(ii) the number of public housing dwelling units owned or
operated by the public housing agency;
(iii) the need of the public housing agency to carry out
anti-crime and anti-drug activities, including providing
adequate security for public housing residents; and
(iv) any record by the public housing agency of exemplary
performance in the operation of public housing.
(B) Incentive to increase income.--The formula shall
provide an incentive to encourage public housing agencies to
increase nonrental income and to increase rental income
attributable to their units by encouraging occupancy by
families whose incomes have increase while in occupancy and
newly admitted families. Any such incentive shall provide
that the agency shall derive the full benefit of any increase
in nonrental or rental income, and such increase shall not
result in a decrease in amounts provided to the agency under
this title. In addition, an agency shall be permitted to
retain, from each fiscal year, the full benefit of such an
increase in nonrental or rental income, except to the extent
that such benefit exceeds (i) 100 percent of the total amount
of the operating allocation for which the agency is eligible
under this section, and (ii) the maximum balance permitted
for the agency's operating reserve under this section and any
regulations issued under this section.
(C) Treatment of utility rates.--The formula shall not take
into account the amount of any cost reductions for a public
housing agency due to the difference between projected and
actual utility rates attributable to actions that are taken
by the agency which lead to such reductions, as determined by
the Secretary. In the case of any public housing agency that
receives financing from any person or entity other than the
Secretary or enters into a performance contract to undertake
energy conservation improvements in a public housing
development, under which the payment does not exceed the cost
of the energy saved as a result of the improvements during a
reasonable negotiated contract period, the formula shall not
take into account the amount of any cost reductions for the
agency due to the differences between projected and actual
utility consumption attributable to actions that are taken by
the agency which lead to such reductions, as determined by
the Secretary. Notwithstanding the preceding 2 sentences,
after the expiration of the 10-year period beginning upon the
savings initially taking effect, the Secretary may reduce the
amount allocated to the agency under the formula by up to 50
percent of such differences.
(3) Consideration of performance, costs, and other
factors.--The formulas under paragraphs (1) and (2) should
each reward performance and may each consider appropriate
factors that reflect the different characteristics and sizes
of public housing agencies, the relative needs, revenues,
costs, and capital improvements of agencies, and the relative
costs to agencies of operating a well-managed agency that
meets the performance targets for the agency established in
the local housing management plan for the agency.
(4) Development under negotiated rulemaking procedure.--The
formulas under this subsection shall be developed according
to procedures for issuance of regulations under the
negotiated rulemaking procedure under subchapter III of
chapter 5 of title 5, United States Code, except that the
formulas shall not be contained in a regulation.
(5) Report.--Not later than the expiration of the 12-month
period beginning upon the enactment of this Act, the
Secretary shall submit a report to the Congress containing
the proposed formulas established pursuant to paragraph (4)
that meets the requirements of this subsection.
(d) Interim Allocation Requirements.--
(1) Operating allocation.--
(A) Applicability to appropriated amounts.--Of any amounts
available for allocation under this subsection for a fiscal
year, an amount shall be used only to provide amounts for
operating allocations under this paragraph for eligible
public housing agencies that bears the same ratio to such
total amount available for allocation that the amount
appropriated for fiscal year 1997 for operating subsidies
under section 9 of the United States Housing Act of 1937
bears to the sum of such operating subsidy amounts plus the
amounts appropriated for such fiscal year for modernization
under section 14 of such Act.
(B) Determination.--The operating allocation under this
paragraph for a public housing agency for a fiscal year shall
be an amount determined by applying, to the amount to be
allocated under this paragraph, the formula used for
determining the distribution of operating subsidies for
fiscal year 1997 to public housing agencies (as modified
under subparagraphs (C) and (D)) under section 9 of the
United States Housing Act of 1937, as in effect immediately
before the effective date of the repeal under section
1601(b).
[[Page H5785]]
(C) Treatment of chronically vacant units.--The Secretary
shall revise the formula referred to in subparagraph (B) so
that the formula does not provide any amounts, other than
utility costs and other necessary costs (such as costs
necessary for the protection of persons and property),
attributable to any dwelling unit of a public housing agency
that has been vacant continuously for 6 or more months. A
unit shall not be considered vacant for purposes of this
paragraph if the unit is unoccupied because of rehabilitation
or renovation that is on schedule.
(D) Treatment of increases in income.--The Secretary shall
revise the formula referred to in subparagraph (B) to provide
an incentive to encourage public housing agencies to increase
nonrental income and to increase rental income attributable
to their units by encouraging occupancy by families whose
incomes have increased while in occupancy and newly admitted
families. Any such incentive shall provide that the agency
shall derive the full benefit of any increase in nonrental or
rental income, and such increase shall not result in a
decrease in amounts provided to the agency under this title.
In addition, an agency shall be permitted to retain, from
each fiscal year, the full benefit of such an increase in
nonrental or rental income, except that such benefit may not
be retained if--
(i) the agency's operating allocation equals 100 percent of
the amount for which it is eligible under section 9 of the
United States Housing Act of 1937, as in effect immediately
before the effective date of the repeal under section 1601(b)
of this Act; and
(ii) the agency's operating reserve balance is equal to the
maximum amount permitted under section 9 of the United States
Housing Act of 1937, as in effect immediately before the
effective date of the repeal under section 1601(b) of this
Act.
(2) Capital improvement allocation.--
(A) Applicability to appropriated amounts.--Of any amounts
available for allocation under this subsection for a fiscal
year, an amount shall be used only to provide amounts for
capital improvement allocations under this paragraph for
eligible public housing agencies that bears the same ratio to
such total amount available for allocation that the amount
appropriated for fiscal year 1997 for modernization under
section 14 of the United States Housing Act of 1937 bears to
the sum of such modernization amounts plus the amounts
appropriated for such fiscal year for operating subsidies
under section 9 of such Act.
(B) Determination.--The capital improvement allocation
under this paragraph for an eligible public housing agency
for a fiscal year shall be determined by applying, to the
amount to be allocated under this paragraph, the formula used
for determining the distribution of modernization assistance
for fiscal year 1997 to public housing agencies under section
14 of the United States Housing Act of 1937, as in effect
immediately before the effective date of the repeal under
section 1601(b), except that the Secretary shall establish a
method for taking into consideration allocation of amounts
under the comprehensive improvement assistance program.
(e) Eligibility of Units Acquired From Proceeds of Sales
Under Demolition or Disposition Plan.--If a public housing
agency uses proceeds from the sale of units under a
homeownership program in accordance with section 1251 to
acquire additional units to be sold to low-income families,
the additional units shall be counted as public housing for
purposes of determining the amount of the allocation to the
agency under this section until sale by the agency, but in
any case no longer than 5 years.
SEC. 1205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.
(a) In General.--In addition to any other actions
authorized under this title, if the Secretary finds pursuant
to an audit under section 1541 that a public housing agency
receiving grant amounts under this title has failed to comply
substantially with any provision of this title, the Secretary
may--
(1) terminate payments under this title to the agency;
(2) withhold from the agency amounts from the total
allocation for the agency pursuant to section 1204;
(3) reduce the amount of future grant payments under this
title to the agency by an amount equal to the amount of such
payments that were not expended in accordance with this
title;
(4) limit the availability of grant amounts provided to the
agency under this title to programs, projects, or activities
not affected by such failure to comply;
(5) withhold from the agency amounts allocated for the
agency under title XIII; or
(6) order other corrective action with respect to the
agency.
(b) Termination of Compliance Action.--If the Secretary
takes action under subsection (a) with respect to a public
housing agency, the Secretary shall--
(1) in the case of action under subsection (a)(1), resume
payments of grant amounts under this title to the agency in
the full amount of the total allocation under section 1204
for the agency at the time that the Secretary first
determines that the agency will comply with the provisions of
this title;
(2) in the case of action under paragraph (2), (5), or (6)
of subsection (a), make withheld amounts available as the
Secretary considers appropriate to ensure that the agency
complies with the provisions of this title; or
(3) in the case of action under subsection (a)(4), release
such restrictions at the time that the Secretary first
determines that the agency will comply with the provisions of
this title.
Subtitle B--Admissions and Occupancy Requirements
SEC. 1221. LOW-INCOME HOUSING REQUIREMENT.
(a) Production Assistance.--Any public housing produced
using amounts provided under a grant under this title or
under the United States Housing Act of 1937 shall be operated
as public housing for the 40-year period beginning upon such
production.
(b) Operating Assistance.--No portion of any public housing
development operated with amounts from a grant under this
title or operating assistance provided under the United
States Housing Act of 1937 may be disposed of before the
expiration of the 10-year period beginning upon the
conclusion of the fiscal year for which the grant or such
assistance was provided, except as provided in this Act.
(c) Capital Improvements Assistance.--Amounts may be used
for eligible activities under section 1203(a)(1) only for the
following housing developments:
(1) Low-income developments.--Amounts may be used for a
low-income housing development that--
(A) is owned by public housing agencies;
(B) is operated as low-income rental housing and produced
or operated with assistance provided under a grant under this
title; and
(C) is consistent with the purposes of this title.
Any development, or portion thereof, referred to in this
paragraph for which activities under section 1203(a)(1) are
conducted using amounts from a grant under this title shall
be maintained and used as public housing for the 20-year
period beginning upon the receipt of such grant. Any public
housing development, or portion thereof, that received the
benefit of a grant pursuant to section 14 of the United
States Housing Act of 1937 shall be maintained and used as
public housing for the 20-year period beginning upon receipt
of such amounts.
(2) Mixed income developments.--Amounts may be used for
eligible activities under section 1203(a)(1) for mixed-income
developments, which shall be a housing development that--
(A) contains dwelling units that are available for
occupancy by families other than low-income families;
(B) contains a number of dwelling units--
(i) which units are made available (by master contract or
individual lease) for occupancy only by low- and very low-
income families identified by the public housing agency;
(ii) which number is not less than a reasonable number of
units, including related amenities, taking into account the
amount of the assistance provided by the agency compared to
the total investment (including costs of operation) in the
development;
(iii) which units are subject to the statutory and
regulatory requirements of the public housing program, except
that the Secretary may grant appropriate waivers to such
statutory and regulatory requirements if reductions in
funding or other changes to the program make continued
application of such requirements impracticable;
(iv) which units are specially designated as dwelling units
under this subparagraph, except the equivalent units in the
development may be substituted for designated units during
the period the units are subject to the requirements of the
public housing program; and
(v) which units shall be eligible for assistance under this
title; and
(C) is owned by the public housing agency, an affiliate
controlled by it, or another appropriate entity.
Notwithstanding any other provision of this title, to
facilitate the establishment of socioeconomically mixed
communities, a public housing agency that uses grant amounts
under this title for a mixed income development under this
paragraph may, to the extent that income from such a
development reduces the amount of grant amounts used for
operating or other costs relating to public housing, use such
resulting savings to rent privately developed dwelling units
in the neighborhood of the mixed income development. Such
units shall be made available for occupancy only by low-
income families eligible for residency in public housing.
SEC. 1222. FAMILY ELIGIBILITY.
(a) In General.--Dwelling units in public housing may be
rented only to families who are low-income families at the
time of their initial occupancy of such units.
(b) Income Mix Within Developments.--A public housing
agency may establish and utilize income-mix criteria for the
selection of residents for dwelling units in public housing
developments that limit admission to a development by
selecting applicants having incomes appropriate so that the
mix of incomes of families occupying the development at any
time is proportional to the income mix in the eligible
population of the jurisdiction of the agency at such time, as
adjusted to take into consideration the severity of housing
need. Any criteria established under this subsection shall be
subject to the provisions of subsection (c).
(c) Income Mix.--
(1) PHA income mix.--Of the public housing dwelling units
of a public housing agency made available for occupancy by
eligible families, not less than 35 percent shall be occupied
by families whose incomes at the
[[Page H5786]]
time of occupancy do not exceed 30 percent of the area median
income, as determined by the Secretary with adjustments for
smaller and larger families, except that the Secretary, may
for purposes of this subsection, establish income ceilings
higher or lower than 30 percent of the median for the area on
the basis of the Secretary's findings that such variations
are necessary because of unusually high or low family
incomes. This paragraph may not be construed to create any
authority on the part of any public housing agency to evict
any family residing in public housing solely because of the
income of the family or because of any noncompliance or
overcompliance with the requirement of this paragraph.
(2) Prohibition of concentration of low-income families.--A
public housing agency may not, in complying with the
requirements under paragraph (1), concentrate very low-income
families (or other families with relatively low incomes) in
public housing dwelling units in certain public housing
developments or certain buildings within developments. The
Secretary may review the income and occupancy characteristics
of the public housing developments, and the buildings of such
developments, of public housing agencies to ensure compliance
with the provisions of this paragraph.
(3) Fungibility with choice-based assistance.--If, during a
fiscal year, a public housing agency provides choice-based
housing assistance under title XIII for a number of low-
income families, who are initially assisted by the agency in
such year and have incomes described in section 1321(b)
(relating to income targeting), which exceeds the number of
families that is required for the agency to comply with the
percentage requirement under such section 1321(b) for such
fiscal year, notwithstanding paragraph (1) of this
subsection, the number of public housing dwelling units that
the agency must otherwise make available in accordance with
such paragraph to comply with the percentage requirement
under such paragraph shall be reduced by such excess number
of families for such fiscal year.
(d) Waiver of Eligibility Requirements for Occupancy by
Police Officers.--
(1) Authority and waiver.--To the extent necessary to
provide occupancy in public housing dwelling units to police
officers and other law enforcement or security personnel (who
are not otherwise eligible for residence in public housing)
and to increase security for other public housing residents
in developments where crime has been a problem, a public
housing agency may, with respect to such units and subject to
paragraph (2)--
(A) waive--
(i) the provisions of subsection (a) of this section and
section 1225(a); and
(ii) the applicability of--
(I) any preferences for occupancy established under section
1223;
(II) the minimum rental amount established pursuant to
section 1225(c) and any maximum monthly rental amount
established pursuant to section 1225(b);
(III) any criteria relating to income mix within
developments established under subsection (b);
(IV) the income mix requirements under subsection (c); and
(V) any other occupancy limitations or requirements; and
(B) establish special rent requirements and other terms and
conditions of occupancy.
(2) Conditions of waiver.--A public housing agency may take
the actions authorized in paragraph (1) only if agency
determines that such actions will increase security in the
public housing developments involved and will not result in a
significant reduction of units available for residence by
low-income families.
SEC. 1223. PREFERENCES FOR OCCUPANCY.
(a) Authority To Establish.--Each public housing agency may
establish a system for making dwelling units in public
housing available for occupancy that provides preference for
such occupancy to families having certain characteristics.
(b) Content.--Each system of preferences established
pursuant to this section shall be based upon local housing
needs and priorities, as determined by the public housing
agency using generally accepted data sources, including any
information obtained pursuant to an opportunity for public
comment as provided under section 1106(e) and under the
requirements applicable to the comprehensive housing
affordability strategy for the relevant jurisdiction.
(c) Sense of the Congress.--It is the sense of the Congress
that, to the greatest extent practicable, public housing
agencies involved in the selection of tenants under the
provisions of this title should adopt preferences for
individuals who are victims of domestic violence.
SEC. 1224. ADMISSION PROCEDURES.
(a) Admission Requirements.--A public housing agency shall
ensure that each family residing in a public housing
development owned or administered by the agency is admitted
in accordance with the procedures established under this
title by the agency and the income limits under section 1222.
(b) Notification of Application Decisions.--A public
housing agency shall establish procedures designed to provide
for notification to an applicant for admission to public
housing of the determination with respect to such
application, the basis for the determination, and, if the
applicant is determined to be eligible for admission, the
projected date of occupancy (to the extent such date can
reasonably be determined). If an agency denies an applicant
admission to public housing, the agency shall notify the
applicant that the applicant may request an informal hearing
on the denial within a reasonable time of such notification.
(c) Site-Based Waiting Lists.--A public housing agency may
establish procedures for maintaining waiting lists for
admissions to public housing developments of the agency,
which may include (notwithstanding any other law, regulation,
handbook, or notice to the contrary) a system of site-based
waiting lists whereby applicants may apply directly at or
otherwise designate the development or developments in which
they seek to reside. All such procedures shall comply with
all provisions of title VI of the Civil Rights Act of 1964,
the Fair Housing Act, and other applicable civil rights laws.
(d) Confidentiality for Victims of Domestic Violence.--A
public housing agency shall be subject to the restrictions
regarding release of information relating to the identity and
new residence of any family in public housing that was a
victim of domestic violence that are applicable to shelters
pursuant to the Family Violence Prevention and Services Act.
The agency shall work with the United States Postal Service
to establish procedures consistent with the confidentiality
provisions in the Violence Against Women Act of 1994.
(e) Transfers.--A public housing agency may apply, to each
public housing resident seeking to transfer from one
development to another development owned or operated by the
agency, the screening procedures applicable at such time to
new applicants for public housing.
SEC. 1225. FAMILY CHOICE OF RENTAL PAYMENT.
(a) Rental Contribution by Resident.--A family residing in
a public housing dwelling shall pay as monthly rent for the
unit the amount determined under paragraph (1) or (2) of
subsection (b), subject to the requirement under subsection
(c). Each public housing agency shall provide for each family
residing in a public housing dwelling unit owned or
administered by the agency to elect annually whether the rent
paid by such family shall be determined under paragraph (1)
or (2) of subsection (b).
(b) Allowable Rent Structures.--
(1) Flat rents.--Each public housing agency shall
establish, for each dwelling unit in public housing owned or
administered by the agency, a flat rental amount for the
dwelling unit, which shall--
(A) be based on the rental value of the unit, as determined
by the public housing agency; and
(B) be designed in accordance with subsection (e) so that
the rent structures do not create a disincentive for
continued residency in public housing by families who are
attempting to become economically self-sufficient through
employment or who have attained a level of self-sufficiency
through their own efforts.
The rental amount for a dwelling unit shall be considered to
comply with the requirements of this paragraph if such amount
does not exceed the actual monthly costs to the public
housing agency attributable to providing and operating the
dwelling unit. The preceding sentence may not be construed to
require establishment of rental amounts equal to or based on
operating costs or to prevent public housing agencies from
developing flat rents required under this paragraph in any
other manner that may comply with this paragraph.
(2) Income-based rents.--The monthly rental amount
determined under this paragraph for a family shall be an
amount, determined by the public housing agency, that does
not exceed the greatest of the following amounts (rounded to
the nearest dollar):
(A) 30 percent of the monthly adjusted income of the
family.
(B) 10 percent of the monthly income of the family.
(C) If the family is receiving payments for welfare
assistance from a public agency and a part of such payments,
adjusted in accordance with the actual housing costs of the
family, is specifically designated by such agency to meet the
housing costs of the family, the portion of such payments
that is so designated.
Nothing in this paragraph may be construed to require a
public housing agency to charge a monthly rent in the maximum
amount permitted under this paragraph.
(c) Minimum Rental Amount.--Notwithstanding the method for
rent determination elected by a family pursuant to subsection
(a), each public housing agency shall require that the
monthly rent for each dwelling unit in public housing owned
or administered by the agency shall not be less than a
minimum amount (which amount shall include any amount allowed
for utilities), which shall be an amount determined by the
agency that is not less than $25 nor more than $50.
(d) Hardship Provisions.--
(1) Minimum rental.--
(A) In general.--Notwithstanding subsection (c), a public
housing agency shall grant an exemption from application of
the minimum monthly rental under such subsection to any
family unable to pay such amount because of financial
hardship, which shall include situations in which (i) the
family has lost eligibility for or is awaiting an eligibility
determination for a Federal, State, or local assistance
program, including a family that includes a member who is an
[[Page H5787]]
alien lawfully admitted for permanent residence under the
Immigration and Nationality Act who would be entitled to
public benefits but for title IV of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996; (ii) the family would be evicted as a result of the
imposition of the minimum rent requirement under subsection
(c); (iii) the income of the family has decreased because of
changed circumstance, including loss of employment; and (iv)
a death in the family has occurred; and other situations as
may be determined by the agency.
(B) Waiting period.--If a resident requests a hardship
exemption under this paragraph and the public housing agency
reasonably determines the hardship to be of a temporary
nature, an exemption shall not be granted during the 90-day
period beginning upon the making of a request for the
exemption. A resident may not be evicted during such 90-day
period for nonpayment of rent. In such a case, if the
resident thereafter demonstrates that the financial hardship
is of a long-term basis, the agency shall retroactively
exempt the resident from the applicability of the minimum
rent requirement for such 90-day period.
(2) Switching rent determination methods.--Notwithstanding
subsection (a), in the case of a family that has elected to
pay rent in the amount determined under subsection (b)(1), a
public housing agency shall provide for the family to pay
rent in the amount determined under subsection (b)(2) during
the period for which such election was made if the family is
unable to pay the amount determined under subsection (b)(1)
because of financial hardship, including--
(A) situations in which the income of the family has
decreased because of changed circumstances, loss of reduction
of employment, death in the family, and reduction in or loss
of income or other assistance;
(B) an increase, because of changed circumstances, in the
family's expenses for--
(i) medical costs;
(ii) child care;
(iii) transportation;
(iv) education; or
(v) similar items; and
(C) such other situations as may be determined by the
agency.
(e) Encouragement of Self-Sufficiency.--The rental policy
developed by each public housing agency shall encourage and
reward employment and economic self-sufficiency.
(f) Income Reviews.--Each public housing agency shall
review the income of each family occupying a dwelling unit in
public housing owned or administered by the agency not less
than annually, except that, in the case of families that are
paying rent in the amount determined under subsection (b)(1),
the agency shall review the income of such family not less
than once every 3 years.
(g) Disallowance of Earned Income From Rent
Determinations.--
(1) In general.--Notwithstanding any other provision of
law, the rent payable under this section by a family whose
income increases as a result of employment of a member of the
family who was previously unemployed for 1 or more years
(including a family whose income increases as a result of the
participation of a family member in any family self-
sufficiency or other job training program) may not be
increased as a result of the increased income due to such
employment during the 18-month period beginning on the date
on which the employment is commenced.
(2) Phase-in of rent increases.--After the expiration of
the 18-month period referred to in paragraph (1), rent
increases due to the continued employment of the family
member described in paragraph (1) shall be phased in over a
subsequent 3-year period.
(3) Transition.--Notwithstanding the provisions of
paragraphs (1) and (2), any resident of public housing
participating in the program under the authority contained in
the undesignated paragraph at the end of section 3(c)(3) of
the United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 1601(b) of
this Act) shall be governed by such authority after such
date.
(h) Phase-In of Rent Contribution Increases After Effective
Date.--
(1) In general.--Except as provided in paragraph (2), for
any family residing in a dwelling unit in public housing upon
the effective date of this division, if the monthly
contribution for rental of an assisted dwelling unit to be
paid by the family upon initial applicability of this title
is greater than the amount paid by the family under the
provisions of the United States Housing Act of 1937
immediately before such applicability, any such resulting
increase in rent contribution shall be--
(A) phased in equally over a period of not less than 3
years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if such
increase is more than 10 percent but less than 30 percent of
such contribution before initial applicability.
(2) Exception.--The minimum rental amount under subsection
(c) shall apply to each family described in paragraph (1) of
this subsection, notwithstanding such paragraph.
SEC. 1226. LEASE REQUIREMENTS.
In renting dwelling units in a public housing development,
each public housing agency shall utilize leases that--
(1) do not contain unreasonable terms and conditions;
(2) obligate the public housing agency to maintain the
development in compliance with the housing quality
requirements under section 1232;
(3) require the public housing agency to give adequate
written notice of termination of the lease, which shall not
be less than--
(A) the period provided under the applicable law of the
jurisdiction or 14 days, whichever is less, in the case of
nonpayment of rent;
(B) a reasonable period of time, but not to exceed 14 days,
when the health or safety of other residents or public
housing agency employees is threatened; and
(C) the period of time provided under the applicable law of
the jurisdiction, in any other case;
(4) contain the provisions required under sections 1642 and
1643 (relating to limitations on occupancy in federally
assisted housing); and
(5) specify that, with respect to any notice of eviction or
termination, notwithstanding any State law, a public housing
resident shall be informed of the opportunity, prior to any
hearing or trial, to examine any relevant documents, records
or regulations directly related to the eviction or
termination.
SEC. 1227. DESIGNATED HOUSING FOR ELDERLY AND DISABLED
FAMILIES.
(a) Authority To Provide Designated Housing.--
(1) In general.--Subject only to provisions of this section
and notwithstanding any other provision of law, a public
housing agency for which the information required under
subsection (d) is in effect may provide public housing
developments (or portions of developments) designated for
occupancy by (A) only elderly families, (B) only disabled
families, or (C) elderly and disabled families.
(2) Priority for occupancy.--In determining priority for
admission to public housing developments (or portions of
developments) that are designated for occupancy as provided
in paragraph (1), the public housing agency may make units in
such developments (or portions) available only to the types
of families for whom the development is designated.
(3) Eligibility of near-elderly families.--If a public
housing agency determines that there are insufficient numbers
of elderly families to fill all the units in a development
(or portion of a development) designated under paragraph (1)
for occupancy by only elderly families, the agency may
provide that near-elderly families may occupy dwelling units
in the development (or portion).
(b) Standards Regarding Evictions.--Except as provided in
subtitle C of title XVI, any tenant who is lawfully residing
in a dwelling unit in a public housing development may not be
evicted or otherwise required to vacate such unit because of
the designation of the development (or portion of a
development) pursuant to this section or because of any
action taken by the Secretary or any public housing agency
pursuant to this section.
(c) Relocation Assistance.--A public housing agency that
designates any existing development or building, or portion
thereof, for occupancy as provided under subsection (a)(1)
shall provide, to each person and family who agrees to be
relocated in connection with such designation--
(1) notice of the designation and an explanation of
available relocation benefits, as soon as is practicable for
the agency and the person or family;
(2) access to comparable housing (including appropriate
services and design features), which may include choice-based
rental housing assistance under title XIII, at a rental rate
paid by the tenant that is comparable to that applicable to
the unit from which the person or family has vacated; and
(3) payment of actual, reasonable moving expenses.
(d) Required Inclusions in Local Housing Management Plan.--
A public housing agency may designate a development (or
portion of a development) for occupancy under subsection
(a)(1) only if the agency, as part of the agency's local
housing management plan--
(1) establishes that the designation of the development is
necessary--
(A) to achieve the housing goals for the jurisdiction under
the comprehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National Affordable
Housing Act; or
(B) to meet the housing needs of the low-income population
of the jurisdiction; and
(2) includes a description of--
(A) the development (or portion of a development) to be
designated;
(B) the types of tenants for which the development is to be
designated;
(C) any supportive services to be provided to tenants of
the designated development (or portion);
(D) how the design and related facilities (as such term is
defined in section 202(d)(8) of the Housing Act of 1959) of
the development accommodate the special environmental needs
of the intended occupants; and
(E) any plans to secure additional resources or housing
assistance to provide assistance to families that may have
been housed if occupancy in the development were not
restricted pursuant to this section.
For purposes of this subsection, the term ``supportive
services'' means services designed to meet the special needs
of residents. Notwithstanding section 1107, the Secretary may
approve a local housing management plan without approving the
portion of the
[[Page H5788]]
plan covering designation of a development pursuant to this
section.
(e) Effectiveness.--
(1) Initial 5-year effectiveness.--The information required
under subsection (d) shall be in effect for purposes of this
section during the 5-year period that begins upon
notification under section 1107(a) of the public housing
agency that the information complies with the requirements
under section 1106 and this section.
(2) Renewal.--Upon the expiration of the 5-year period
under paragraph (1) or any 2-year period under this
paragraph, an agency may extend the effectiveness of the
designation and information for an additional 2-year period
(that begins upon such expiration) by submitting to the
Secretary any information needed to update the information.
The Secretary may not limit the number of times a public
housing agency extends the effectiveness of a designation and
information under this paragraph.
(3) Treatment of existing plans.--Notwithstanding any other
provision of this section, a public housing agency shall be
considered to have submitted the information required under
this section if the agency has submitted to the Secretary an
application and allocation plan under section 7 of the United
States Housing Act of 1937 (as in effect before the effective
date of the repeal under section 1601(b) of this Act) that
has not been approved or disapproved before such effective
date.
(4) Transition provision.--Any application and allocation
plan approved under section 7 of the United States Housing
Act of 1937 (as in effect before the effective date of the
repeal under section 1601(b) of this Act) before such
effective date shall be considered to be the information
required to be submitted under this section and that is in
effect for purposes of this section for the 5-year period
beginning upon such approval.
(f) Inapplicability of Uniform Relocation Assistance and
Real Property Acquisitions Policy Act of 1970.--No resident
of a public housing development shall be considered to be
displaced for purposes of the Uniform Relocation Assistance
and Real Property Acquisitions Policy Act of 1970 because of
the designation of any existing development or building, or
portion thereof, for occupancy as provided under subsection
(a) of this section.
(g) Use of Amounts.--Any amounts appropriated pursuant to
section 10(b) of the Housing Opportunity Program Extension
Act of 1996 (Public Law 104-120) may also be used, to the
extent or in such amounts as are or have been provided in
advance in appropriation Acts, for choice-based rental
housing assistance under title XIII for public housing
agencies to implement this section.
Subtitle C--Management
SEC. 1231. MANAGEMENT PROCEDURES.
(a) Sound Management.--A public housing agency that
receives grant amounts under this title shall establish and
comply with procedures and practices sufficient to ensure
that the public housing developments owned or administered by
the agency are operated in a sound manner.
(b) Accounting System for Rental Collections and Costs.--
(1) Establishment.--Each public housing agency that
receives grant amounts under this title shall establish and
maintain a system of accounting for rental collections and
costs (including administrative, utility, maintenance,
repair, and other operating costs) for each project and
operating cost center (as determined by the Secretary).
(2) Access to records.--Each public housing agency shall
make available to the general public the information required
pursuant to paragraph (1) regarding collections and costs.
(3) Exemption.--The Secretary may permit authorities owning
or operating fewer than 500 dwelling units to comply with the
requirements of this subsection by accounting on an agency-
wide basis.
(c) Management by Other Entities.--Except as otherwise
provided under this division, a public housing agency may
contract with any other entity to perform any of the
management functions for public housing owned or operated by
the public housing agency.
SEC. 1232. HOUSING QUALITY REQUIREMENTS.
(a) In General.--Each public housing agency that receives
grant amounts under this division shall maintain its public
housing in a condition that complies--
(1) in the case of public housing located in a jurisdiction
which has in effect laws, regulations, standards, or codes
regarding habitability of residential dwellings, with such
applicable laws, regulations, standards, or codes; or
(2) in the case of public housing located in a jurisdiction
which does not have in effect laws, regulations, standards,
or codes described in paragraph (1), with the housing quality
standards established under subsection (b).
(b) Federal Housing Quality Standards.--The Secretary shall
establish housing quality standards under this subsection
that ensure that public housing dwelling units are safe,
clean, and healthy. Such standards shall include requirements
relating to habitability, including maintenance, health and
sanitation factors, condition, and construction of dwellings,
and shall, to the greatest extent practicable, be consistent
with the standards established under section 1328(c). The
Secretary shall differentiate between major and minor
violations of such standards.
(c) Determinations.--Each public housing agency providing
housing assistance shall identify, in the local housing
management plan of the agency, whether the agency is
utilizing the standard under paragraph (1) or (2) of
subsection (a).
(d) Annual Inspections.--Each public housing agency that
owns or operates public housing shall make an annual
inspection of each public housing development to determine
whether units in the development are maintained in accordance
with the requirements under subsection (a). The agency shall
retain the results of such inspections and, upon the request
of the Secretary, the Inspector General for the Department of
Housing and Urban Development, or any auditor conducting an
audit under section 1541, shall make such results available.
SEC. 1233. EMPLOYMENT OF RESIDENTS.
Section 3 of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701u) is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (A)--
(i) by striking ``public and Indian housing agencies'' and
inserting ``public housing agencies and recipients of grants
under the Native American Housing Assistance and Self-
Determination Act of 1996''; and
(ii) by striking ``development assistance'' and all that
follows through the end and inserting ``assistance provided
under title XII of the Housing Opportunity and Responsibility
Act of 1997 and used for the housing production, operation,
or capital needs.''; and
(B) in subparagraph (B)(ii), by striking ``managed by the
public or Indian housing agency'' and inserting ``assisted by
the public housing agency or the recipient of a grant under
the Native American Housing Assistance and Self-Determination
Act of 1996'';
(2) in subsection (d)(1)--
(A) in subparagraph (A)--
(i) by striking ``public and Indian housing agencies'' and
inserting ``public housing agencies and recipients of grants
under the Native American Housing Assistance and Self-
Determination Act of 1996''; and
(ii) by striking ``development assistance'' and all that
follows through ``section 14 of that Act'' and inserting
``assistance provided under title XII of the Housing
Opportunity and Responsibility Act of 1997 and used for the
housing production, operation, or capital needs''; and
(B) in subparagraph (B)(ii), by striking ``operated by the
public or Indian housing agency'' and inserting ``assisted by
the public housing agency or the recipient of a grant under
the Native American Housing Assistance and Self-Determination
Act of 1996'';
(3) in subsections (c)(1)(A) and (d)(1)(A), by striking
``make their best efforts,'' each place it appears and
inserting ``to the maximum extent that is possible and'';
(4) in subsection (c)(1)(A), by striking ``to give'' and
inserting ``give''; and
(5) in subsection (d)(1)(A), by striking ``to award'' and
inserting ``award''.
SEC. 1234. RESIDENT COUNCILS AND RESIDENT MANAGEMENT
CORPORATIONS.
(a) Resident Councils.--The residents of a public housing
development may establish a resident council for the
development for purposes of consideration of issues relating
to residents, representation of resident interests, and
coordination and consultation with a public housing agency. A
resident council shall be an organization or association
that--
(1) is nonprofit in character;
(2) is representative of the residents of the eligible
housing;
(3) adopts written procedures providing for the election of
officers on a regular basis; and
(4) has a democratically elected governing board, which is
elected by the residents of the eligible housing on a regular
basis.
(b) Resident Management Corporations.--
(1) Establishment.--The residents of a public housing
development may establish a resident management corporation
for the purpose of assuming the responsibility for the
management of the development under section 1235 or
purchasing a development.
(2) Requirements.--A resident management corporation shall
be a corporation that--
(A) is nonprofit in character;
(B) is organized under the laws of the State in which the
development is located;
(C) has as its sole voting members the residents of the
development; and
(D) is established by the resident council for the
development or, if there is not a resident council, by a
majority of the households of the development.
SEC. 1235. MANAGEMENT BY RESIDENT MANAGEMENT CORPORATION.
(a) Authority.--A public housing agency may enter into a
contract under this section with a resident management
corporation to provide for the management of public housing
developments by the corporation.
(b) Contract.--A contract under this section for management
of public housing developments by a resident management
corporation shall establish the respective management rights
and responsibilities of the corporation and the public
housing agency. The contract shall be consistent with the
requirements of this division applicable to public housing
development and may include specific terms governing
management personnel and compensation, access to public
housing records, submission of and adherence to budgets, rent
collection procedures,
[[Page H5789]]
resident income verification, resident eligibility
determinations, resident eviction, the acquisition of
supplies and materials and such other matters as may be
appropriate. The contract shall be treated as a contracting
out of services.
(c) Bonding and Insurance.--Before assuming any management
responsibility for a public housing development, the resident
management corporation shall provide fidelity bonding and
insurance, or equivalent protection. Such bonding and
insurance, or its equivalent, shall be adequate to protect
the Secretary and the public housing agency against loss,
theft, embezzlement, or fraudulent acts on the part of the
resident management corporation or its employees.
(d) Block Grant Assistance and Income.--A contract under
this section shall provide for--
(1) the public housing agency to provide a portion of the
block grant assistance under this title to the resident
management corporation for purposes of operating the public
housing development covered by the contract and performing
such other eligible activities with respect to the
development as may be provided under the contract;
(2) the amount of income expected to be derived from the
development itself (from sources such as rents and charges);
(3) the amount of income to be provided to the development
from the other sources of income of the public housing agency
(such as interest income, administrative fees, and rents);
and
(4) any income generated by a resident management
corporation of a public housing development that exceeds the
income estimated under the contract shall be used for
eligible activities under section 1203(a).
(e) Calculation of Total Income.--
(1) Maintenance of support.--Subject to paragraph (2), the
amount of assistance provided by a public housing agency to a
public housing development managed by a resident management
corporation may not be reduced during the 3-year period
beginning on the date on which the resident management
corporation is first established for the development.
(2) Reductions and increases in support.--If the total
income of a public housing agency is reduced or increased,
the income provided by the public housing agency to a public
housing development managed by a resident management
corporation shall be reduced or increased in proportion to
the reduction or increase in the total income of the agency,
except that any reduction in block grant amounts under this
title to the agency that occurs as a result of fraud, waste,
or mismanagement by the agency shall not affect the amount
provided to the resident management corporation.
SEC. 1236. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO
INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.
(a) Authority.--The Secretary may transfer the
responsibility and authority for management of specified
housing (as such term is defined in subsection (h)) from a
public housing agency to an eligible management entity, in
accordance with the requirements of this section, if--
(1) such housing is owned or operated by a public housing
agency that is designated as a troubled agency under section
1533(a); and
(2) the Secretary determines that--
(A) such housing has deferred maintenance, physical
deterioration, or obsolescence of major systems and other
deficiencies in the physical plant of the project;
(B) such housing is occupied predominantly by families with
children who are in a severe state of distress, characterized
by such factors as high rates of unemployment, teenage
pregnancy, single-parent households, long-term dependency on
public assistance and minimal educational achievement;
(C) such housing is located in an area such that the
housing is subject to recurrent vandalism and criminal
activity (including drug-related criminal activity); and
(D) the residents can demonstrate that the elements of
distress for such housing specified in subparagraphs (A)
through (C) can be remedied by an entity that has a
demonstrated capacity to manage, with reasonable expenses for
modernization.
Such a transfer may be made only as provided in this section,
pursuant to the approval by the Secretary of a request for
the transfer made by a majority vote of the residents for the
specified housing, after consultation with the public housing
agency for the specified housing.
(b) Block Grant Assistance.--Pursuant to a contract under
subsection (c), the Secretary shall require the public
housing agency for specified housing to provide to the
manager for the housing, from any block grant amounts under
this title for the agency, fair and reasonable amounts for
operating costs for the housing. The amount made available
under this subsection to a manager shall be determined by the
Secretary based on the share for the specified housing of the
total block grant amounts for the public housing agency
transferring the housing, taking into consideration the
operating and capital improvement needs of the specified
housing, the operating and capital improvement needs of the
remaining public housing units managed by the public housing
agency, and the local housing management plan of such agency.
(c) Contract Between Secretary and Manager.--
(1) Requirements.--Pursuant to the approval of a request
under this section for transfer of the management of
specified housing, the Secretary shall enter into a contract
with the eligible management entity.
(2) Terms.-- A contract under this subsection shall contain
provisions establishing the rights and responsibilities of
the manager with respect to the specified housing and the
Secretary and shall be consistent with the requirements of
this division applicable to public housing developments.
(d) Compliance With Local Housing Management Plan.--A
manager of specified housing under this section shall comply
with the approved local housing management plan applicable to
the housing and shall submit such information to the public
housing agency from which management was transferred as may
be necessary for such agency to prepare and update its local
housing management plan.
(e) Demolition and Disposition by Manager.--A manager under
this section may demolish or dispose of specified housing
only if, and in the manner, provided for in the local housing
management plan for the agency transferring management of the
housing.
(f) Limitation on PHA Liability.--A public housing agency
that is not a manager for specified housing shall not be
liable for any act or failure to act by a manager or resident
council for the specified housing.
(g) Treatment of Manager.--To the extent not inconsistent
with this section and to the extent the Secretary determines
not inconsistent with the purposes of this division, a
manager of specified housing under this section shall be
considered to be a public housing agency for purposes of this
title.
(h) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Eligible management entity.--The term ``eligible
management entity'' means, with respect to any public housing
development, any of the following entities:
(A) Nonprofit organization.--A public or private nonprofit
organization, which shall--
(i) include a resident management corporation or resident
management organization and, as determined by the Secretary,
a public or private nonprofit organization sponsored by the
public housing agency that owns the development; and
(ii) not include the public housing agency that owns the
development.
(B) For-profit entity.--A for-profit entity that has
demonstrated experience in providing low-income housing.
(C) State or local government.--A State or local
government, including an agency or instrumentality thereof.
(D) Public housing agency.--A public housing agency (other
than the public housing agency that owns the development).
The term does not include a resident council.
(2) Manager.--The term ``manager'' means any eligible
management entity that has entered into a contract under this
section with the Secretary for the management of specified
housing.
(3) Nonprofit.--The term ``nonprofit'' means, with respect
to an organization, association, corporation, or other
entity, that no part of the net earnings of the entity inures
to the benefit of any member, founder, contributor, or
individual.
(4) Private nonprofit organization.--The term ``private
nonprofit organization'' means any private organization
(including a State or locally chartered organization) that--
(A) is incorporated under State or local law;
(B) is nonprofit in character;
(C) complies with standards of financial accountability
acceptable to the Secretary; and
(D) has among its purposes significant activities related
to the provision of decent housing that is affordable to low-
income families.
(5) Public housing agency.--The term ``public housing
agency'' has the meaning given such term in section 1103(a).
(6) Public nonprofit organization.--The term ``public
nonprofit organization'' means any public entity that is
nonprofit in character.
(7) Specified housing.--The term ``specified housing''
means a public housing development or developments, or a
portion of a development or developments, for which the
transfer of management is requested under this section. The
term includes one or more contiguous buildings and an area of
contiguous row houses, but in the case of a single building,
the building shall be sufficiently separable from the
remainder of the development of which it is part to make
transfer of the management of the building feasible for
purposes of this section.
SEC. 1237. RESIDENT OPPORTUNITY PROGRAM.
(a) Purpose.--The purpose of this section is to encourage
increased resident management of public housing developments,
as a means of improving existing living conditions in public
housing developments, by providing increased flexibility for
public housing developments that are managed by residents
by--
(1) permitting the retention, and use for certain purposes,
of any revenues exceeding operating and project costs; and
(2) providing funding, from amounts otherwise available,
for technical assistance to promote formation and development
of resident management entities.
For purposes of this section, the term ``public housing
development'' includes one or more contiguous buildings or an
area of contiguous row houses the elected resident
[[Page H5790]]
councils of which approve the establishment of a resident
management corporation and otherwise meet the requirements of
this section.
(b) Program Requirements.--
(1) Resident council.--As a condition of entering into a
resident opportunity program, the elected resident council of
a public housing development shall approve the establishment
of a resident management corporation that complies with the
requirements of section 1234(b)(2). When such approval is
made by the elected resident council of a building or row
house area, the resident opportunity program shall not
interfere with the rights of other families residing in the
development or harm the efficient operation of the
development. The resident management corporation and the
resident council may be the same organization, if the
organization complies with the requirements applicable to
both the corporation and council.
(2) Public housing management specialist.--The resident
council of a public housing development, in cooperation with
the public housing agency, shall select a qualified public
housing management specialist to assist in determining the
feasibility of, and to help establish, a resident management
corporation and to provide training and other duties agreed
to in the daily operations of the development.
(3) Management responsibilities.--A resident management
corporation that qualifies under this section, and that
supplies insurance and bonding or equivalent protection
sufficient to the Secretary and the public housing agency,
shall enter into a contract with the agency establishing the
respective management rights and responsibilities of the
corporation and the agency. The contract shall be treated as
a contracting out of services and shall be subject to the
requirements under section 1235 for such contracts.
(4) Annual audit.--The books and records of a resident
management corporation operating a public housing development
shall be audited annually by a certified public accountant. A
written report of each such audit shall be forwarded to the
public housing agency and the Secretary.
(c) Comprehensive Improvement Assistance.--Public housing
developments managed by resident management corporations may
be provided with modernization assistance from grant amounts
under this title for purposes of renovating such
developments. If such renovation activities (including the
planning and architectural design of the rehabilitation) are
administered by a resident management corporation, the public
housing agency involved may not retain, for any
administrative or other reason, any portion of the assistance
provided pursuant to this subsection unless otherwise
provided by contract.
(d) Waiver of Federal Requirements.--
(1) Waiver of regulatory requirements.--Upon the request of
any resident management corporation and public housing
agency, and after notice and an opportunity to comment is
afforded to the affected residents, the Secretary may waive
(for both the resident management corporation and the public
housing agency) any requirement established by the Secretary
(and not specified in any statute) that the Secretary
determines to unnecessarily increase the costs or restrict
the income of a public housing development.
(2) Waiver to permit employment.--Upon the request of any
resident management corporation, the Secretary may, subject
to applicable collective bargaining agreements, permit
residents of such development to volunteer a portion of their
labor.
(3) Exceptions.--The Secretary may not waive under this
subsection any requirement with respect to income eligibility
for purposes of section 1222, family rental payments under
section 1225, tenant or applicant protections, employee
organizing rights, or rights of employees under collective
bargaining agreements.
(e) Operating Assistance and Development Income.--
(1) Calculation of operating subsidy.--The grant amounts
received under this title by a public housing agency used for
operating fund activities under section 1203(a)(2) that are
allocated to a public housing development managed by a
resident management corporation shall not be less than per
unit monthly amount of such assistance used by the public
housing agency in the previous year, as determined on an
individual development basis.
(2) Contract requirements.--Any contract for management of
a public housing development entered into by a public housing
agency and a resident management corporation shall specify
the amount of income expected to be derived from the
development itself (from sources such as rents and charges)
and the amount of income funds to be provided to the
development from the other sources of income of the agency
(such as assistance for operating activities under section
1203(a)(2), interest income, administrative fees, and rents).
(f) Resident Management Technical Assistance and
Training.--
(1) Financial assistance.--To the extent budget authority
is available under this title, the Secretary shall provide
financial assistance to resident management corporations or
resident councils that obtain, by contract or otherwise,
technical assistance for the development of resident
management entities, including the formation of such
entities, the development of the management capability of
newly formed or existing entities, the identification of the
social support needs of residents of public housing
developments, and the securing of such support. In addition,
the Secretary may provide financial assistance to resident
management corporations or resident councils for activities
sponsored by resident organizations for economic uplift, such
as job training, economic development, security, and other
self-sufficiency activities beyond those related to the
management of public housing. The Secretary may require
resident councils or resident management corporations to
utilize public housing agencies or other qualified
organizations as contract administrators with respect to
financial assistance provided under this paragraph.
(2) Limitation on assistance.--The financial assistance
provided under this subsection with respect to any public
housing development may not exceed $100,000.
(3) Prohibition.--A resident management corporation or
resident council may not, before the award to the corporation
or council of a grant amount under this subsection, enter
into any contract or other agreement with any entity to
provide such entity with amounts from the grant for providing
technical assistance or carrying out other activities
eligible for assistance with amounts under this subsection.
Any such agreement entered into in violation of this
paragraph shall be void and unenforceable.
(4) Funding.--Of any amounts made available under section
1282(1) for use under the capital fund, the Secretary may use
to carry out this subsection $15,000,000 for fiscal year
1998.
(5) Limitation regarding assistance under hope grant
program.--The Secretary may not provide financial assistance
under this subsection to any resident management corporation
or resident council with respect to which assistance for the
development or formation of such entity is provided under
title III of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
1601(b) of this Act).
(6) Technical assistance and clearinghouse.--The Secretary
may use up to 10 percent of the amount made available
pursuant to paragraph (4)--
(A) to provide technical assistance, directly or by grant
or contract, and
(B) to receive, collect, process, assemble, and disseminate
information,
in connection with activities under this subsection.
(g) Assessment and Report by Secretary.--Not later than 3
years after the date of the enactment of this Act, the
Secretary shall--
(1) conduct an evaluation and assessment of resident
management, and particularly of the effect of resident
management on living conditions in public housing; and
(2) submit to the Congress a report setting forth the
findings of the Secretary as a result of the evaluation and
assessment and including any recommendations the Secretary
determines to be appropriate.
(h) Applicability.--Any management contract between a
public housing agency and a resident management corporation
that is entered into after the date of the enactment of the
Stewart B. McKinney Homeless Assistance Amendments Act of
1988 shall be subject to this section and any regulations
issued to carry out this section.
Subtitle D--Homeownership
SEC. 1251. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) In General.--A public housing agency may carry out a
homeownership program in accordance with this section and the
local housing management plan of the agency to make public
housing dwelling units, public housing developments, and
other housing projects available for purchase by low-income
families. An agency may transfer a unit only pursuant to a
homeownership program approved by the Secretary.
Notwithstanding section 1107, the Secretary may approve a
local housing management plan without approving the portion
of the plan regarding a homeownership program pursuant to
this section. In the case of the portion of a plan regarding
the homeownership program that is submitted separately
pursuant to the preceding sentence, the Secretary shall
approve or disapprove such portion not later than 60 days
after the submission of such portion.
(b) Participating Units.--A program under this section may
cover any existing public housing dwelling units or projects,
and may include other dwelling units and housing owned,
operated, or assisted, or otherwise acquired for use under
such program, by the public housing agency.
(c) Eligible Purchasers.--
(1) Low-income requirement.--Only low-income families
assisted by a public housing agency, other low-income
families, and entities formed to facilitate such sales by
purchasing units for resale to low-income families shall be
eligible to purchase housing under a homeownership program
under this section.
(2) Other requirements.--A public housing agency may
establish other requirements or limitations for families to
purchase housing under a homeownership program under this
section, including requirements or limitations regarding
employment or participation in employment counseling or
training activities, criminal activity, participation in
homeownership counseling programs, evidence of regular
income, and other requirements. In the case of purchase by an
entity
[[Page H5791]]
for resale to low-income families, the entity shall sell the
units to low-income families within 5 years from the date of
its acquisition of the units. The entity shall use any net
proceeds from the resale and from managing the units, as
determined in accordance with guidelines of the Secretary,
for housing purposes, such as funding resident organizations
and reserves for capital replacements.
(d) Financing and Assistance.--A homeownership program
under this section may provide financing for acquisition of
housing by families purchasing under the program or by the
public housing agency for sale under this program in any
manner considered appropriate by the agency (including sale
to a resident management corporation).
(e) Downpayment Requirement.--
(1) In general.--Each family purchasing housing under a
homeownership program under this section shall be required to
provide from its own resources a downpayment in connection
with any loan for acquisition of the housing, in an amount
determined by the public housing agency. Except as provided
in paragraph (2), the agency shall permit the family to use
grant amounts, gifts from relatives, contributions from
private sources, and similar amounts as downpayment amounts
in such purchase,
(2) Direct family contribution.--In purchasing housing
pursuant to this section, each family shall contribute an
amount of the downpayment, from resources of the family other
than grants, gifts, contributions, or other similar amounts
referred to in paragraph (1), that is not less than 1 percent
of the purchase price.
(f) Ownership Interests.--A homeownership program under
this section may provide for sale to the purchasing family of
any ownership interest that the public housing agency
considers appropriate under the program, including ownership
in fee simple, a condominium interest, an interest in a
limited dividend cooperative, a shared appreciation interest
with a public housing agency providing financing.
(g) Resale.--
(1) Authority and limitation.--A homeownership program
under this section shall permit the resale of a dwelling unit
purchased under the program by an eligible family, but shall
provide such limitations on resale as the agency considers
appropriate (whether the family purchases directly from the
agency or from another entity) for the agency to recapture--
(A) from any economic gain derived from any such resale
occurring during the 5-year period beginning upon purchase of
the dwelling unit by the eligible family, a portion of the
amount of any financial assistance provided under the program
by the agency to the eligible family; and
(B) after the expiration of such 5-year period, only such
amounts as are equivalent to the assistance provided under
this section by the agency to the purchaser.
(2) Considerations.--The limitations referred to in
paragraph (1) may provide for consideration of the aggregate
amount of assistance provided under the program to the
family, the contribution to equity provided by the purchasing
eligible family, the period of time elapsed between purchase
under the homeownership program and resale, the reason for
resale, any improvements to the property made by the eligible
family, any appreciation in the value of the property, and
any other factors that the agency considers appropriate.
(h) Sale of Certain Scattered-Site Housing.--A public
housing agency that the Secretary has determined to be a
high-performing agency may use the proceeds from the
disposition of scattered-site public housing under a
homeownership program under this section to purchase
replacement scattered-site dwelling units, to the extent such
use is provided for in the local housing management plan for
the agency approved under section 1107. Any such replacement
dwelling units shall be considered public housing for
purposes of this division.
(i) Inapplicability of Disposition Requirements.--The
provisions of section 1261 shall not apply to disposition of
public housing dwelling units under a homeownership program
under this section, except that any dwelling units sold under
such a program shall be treated as public housing dwelling
units for purposes of subsections (e) and (f) of section
1261.
Subtitle E--Disposition, Demolition, and Revitalization of Developments
SEC. 1261. REQUIREMENTS FOR DEMOLITION AND DISPOSITION OF
DEVELOPMENTS.
(a) Authority and Flexibility.--A public housing agency may
demolish, dispose of, or demolish and dispose of nonviable or
nonmarketable public housing developments of the agency in
accordance with this section.
(b) Local Housing Management Plan Requirement.--A public
housing agency may take any action to demolish or dispose of
a public housing development (or a portion of a development)
only if such demolition or disposition complies with the
provisions of this section and is in accordance with the
local housing management plan for the agency. Notwithstanding
section 1107, the Secretary may approve a local housing
management plan without approving the portion of the plan
covering demolition or disposition pursuant to this section.
(c) Purpose of Demolition or Disposition.--A public housing
agency may demolish or dispose of a public housing
development (or portion of a development) only if the agency
provides sufficient evidence to the Secretary that--
(1) the development (or portion thereof) is severely
distressed or obsolete;
(2) the development (or portion thereof) is in a location
making it unsuitable for housing purposes;
(3) the development (or portion thereof) has design or
construction deficiencies that make cost-effective
rehabilitation infeasible;
(4) assuming that reasonable rehabilitation and management
intervention for the development has been completed and paid
for, the anticipated revenue that would be derived from
charging market-based rents for units in the development (or
portion thereof) would not cover the anticipated operating
costs and replacement reserves of the development (or
portion) at full occupancy and the development (or portion)
would constitute a substantial burden on the resources of the
public housing agency;
(5) retention of the development (or portion thereof) is
not in the best interests of the residents of the public
housing agency because--
(A) developmental changes in the area surrounding the
development adversely affect the health or safety of the
residents or the feasible operation of the development by the
public housing agency;
(B) demolition or disposition will allow the acquisition,
development, or rehabilitation of other properties which will
be more efficiently or effectively operated as low-income
housing; or
(C) other factors exist that the agency determines are
consistent with the best interests of the residents and the
agency and not inconsistent with other provisions of this
division;
(6) in the case only of demolition or disposition of a
portion of a development, the demolition or disposition will
help to ensure the remaining useful life of the remainder of
the development; or
(7) in the case only of property other than dwelling
units--
(A) the property is excess to the needs of a development;
or
(B) the demolition or disposition is incidental to, or does
not interfere with, continued operation of a development.
The evidence required under this subsection shall include, as
a condition of demolishing or disposing of a public housing
development (or portion of a development) estimated to have a
value of $100,000 or more, a statement of the market value of
the development (or portion), which has been determined by a
party not having any interest in the housing or the public
housing agency and pursuant to not less than 2 professional,
independent appraisals of the development (or portion).
(d) Consultation.--A public housing agency may demolish or
dispose of a public housing development (or portion of a
development) only if the agency notifies and confers
regarding the demolition or disposition with--
(1) the residents of the development (or portion); and
(2) appropriate local government officials.
(e) Counseling.--A public housing agency may demolish or
dispose of a public housing development (or a portion of a
development) only if the agency provides any necessary
counseling for families displaced by such action to
facilitate relocation.
(f) Use of Proceeds.--Any net proceeds from the disposition
of a public housing development (or portion of a development)
shall be used for--
(1) housing assistance for low-income families that is
consistent with the low-income housing needs of the
community, through acquisition, development, or
rehabilitation of, or homeownership programs for, other low-
income housing or the provision of choice-based assistance
under title XIII for such families;
(2) supportive services relating to job training or child
care for residents of a development or developments; or
(3) leveraging amounts for securing commercial enterprises,
on-site in public housing developments of the public housing
agency, appropriate to serve the needs of the residents.
(g) Relocation.--A public housing agency that demolishes or
disposes of a public housing development (or portion of a
development thereof) shall ensure that--
(1) each family that is a resident of the development (or
portion) that is demolished or disposed of is relocated to
other safe, clean, healthy, and affordable housing, which is,
to the maximum extent practicable, housing of the family's
choice, including choice-based assistance under title XIII
(provided that with respect to choice-based assistance, the
preceding requirement shall be fulfilled only upon the
relocation of the such family into such housing);
(2) the public housing agency does not take any action to
dispose of any unit until any resident to be displaced is
relocated in accordance with paragraph (1); and
(3) each resident family to be displaced is paid relocation
expenses, and the rent to be paid initially by the resident
following relocation does not exceed the amount permitted
under section 1225(a).
(h) Right of First Refusal for Resident Organizations and
Resident Management Corporations.--
(1) In general.--A public housing agency may not dispose of
a public housing development (or portion of a development)
unless the agency has, before such disposition, offered to
sell the property, as provided in this subsection, to each
resident organization and
[[Page H5792]]
resident management corporation operating at the development
for continued use as low-income housing, and no such
organization or corporation purchases the property pursuant
to such offer. A resident organization may act, for purposes
of this subsection, through an entity formed to facilitate
homeownership under subtitle D.
(2) Timing.--Disposition of a development (or portion
thereof) under this section may not take place--
(A) before the expiration of the period during which any
such organization or corporation may notify the agency of
interest in purchasing the property, which shall be the 30-
day period beginning on the date that the agency first
provides notice of the proposed disposition of the property
to such resident organizations and resident management
corporations;
(B) if an organization or corporation submits notice of
interest in accordance with subparagraph (A), before the
expiration of the period during which such organization or
corporation may obtain a commitment for financing to purchase
the property, which shall be the 60-day period beginning upon
the submission to the agency of the notice of interest; or
(C) if, during the period under subparagraph (B), an
organization or corporation obtains such financing commitment
and makes a bona fide offer to the agency to purchase the
property for a price equal to or exceeding the applicable
offer price under paragraph (3).
The agency shall sell the property pursuant to any purchase
offer described in subparagraph (C).
(3) Terms of offer.--An offer by a public housing agency to
sell a property in accordance with this subsection shall
involve a purchase price that reflects the market value of
the property, the reason for the sale, the impact of the sale
on the surrounding community, and any other factors that the
agency considers appropriate.
(i) Information for Local Housing Management Plan.--A
public housing agency may demolish or dispose of a public
housing development (or portion thereof) only if it includes
in the applicable local housing management plan information
sufficient to describe--
(1) the housing to be demolished or disposed of;
(2) the purpose of the demolition or disposition under
subsection (c) and why the demolition or disposition complies
with the requirements under subsection (c), and includes
evidence of the market value of the development (or portion)
required under subsection (c);
(3) how the consultations required under subsection (d)
will be made;
(4) how the net proceeds of the disposition will be used in
accordance with subsection (f);
(5) how the agency will relocate residents, if necessary,
as required under subsection (g); and
(6) that the agency has offered the property for
acquisition by resident organizations and resident management
corporations in accordance with subsection (h).
(j) Site and Neighborhood Standards Exemption.--
Notwithstanding any other provision of law, a public housing
agency may provide for development of public housing dwelling
units on the same site or in the same neighborhood as any
dwelling units demolished, pursuant to a plan under this
section, but only if such development provides for
significantly fewer dwelling units.
(k) Treatment of Replacement Units.--
(1) Provision of other housing assistance.--In connection
with any demolition or disposition of public housing under
this section, a public housing agency may provide for other
housing assistance for low-income families that is consistent
with the low-income housing needs of the community,
including--
(A) the provision of choice-based assistance under title
XIII; and
(B) the development, acquisition, or lease by the agency of
dwelling units, which dwelling units shall--
(i) be eligible to receive assistance with grant amounts
provided under this title; and
(ii) be made available for occupancy, operated, and managed
in the manner required for public housing, and subject to the
other requirements applicable to public housing dwelling
units.
(2) Treatment of individuals.--For purposes of this
subsection, an individual between the ages of 18 and 21,
inclusive, shall, at the discretion of the individual, be
considered a family.
(l) Use of New Dwelling Units.--A public housing agency
demolishing or disposing of a public housing development (or
portion thereof) under this section shall seek, where
practical, to ensure that, if housing units are provided on
any property that was previously used for the public housing
demolished or disposed of, not less than 25 percent of such
dwelling units shall be dwelling units reserved for occupancy
during the remaining useful life of the housing by low-income
families.
(m) Permissible Relocation Without Plan.--If a public
housing agency determines that because of an emergency
situation public housing dwelling units are severely
uninhabitable, the public housing agency may relocate
residents of such dwelling units before the submission of a
local housing management plan providing for demolition or
disposition of such units.
(n) Consolidation of Occupancy Within or Among Buildings.--
Nothing in this section may be construed to prevent a public
housing agency from consolidating occupancy within or among
buildings of a public housing development, or among
developments, or with other housing for the purpose of
improving living conditions of, or providing more efficient
services to, residents.
(o) De Minimis Exception to Demolition Requirements.--
Notwithstanding any other provision of this section, in any
5-year period a public housing agency may demolish not more
than the lesser of 5 dwelling units or 5 percent of the total
dwelling units owned and operated by the public housing
agency, without providing for such demolition in a local
housing management plan, but only if the space occupied by
the demolished unit is used for meeting the service or other
needs of public housing residents or the demolished unit was
beyond repair.
SEC. 1262. DEMOLITION, SITE REVITALIZATION, REPLACEMENT
HOUSING, AND CHOICE-BASED ASSISTANCE GRANTS FOR
DEVELOPMENTS.
(a) Purposes.--The purpose of this section is to provide
assistance to public housing agencies for the purposes of--
(1) reducing the density and improving the living
environment for public housing residents of severely
distressed public housing developments through the demolition
of obsolete public housing developments (or portions
thereof);
(2) revitalizing sites (including remaining public housing
dwelling units) on which such public housing developments are
located and contributing to the improvement of the
surrounding neighborhood;
(3) providing housing that will avoid or decrease the
concentration of very low-income families; and
(4) providing choice-based assistance in accordance with
title XIII for the purpose of providing replacement housing
and assisting residents to be displaced by the demolition.
(b) Grant Authority.--The Secretary may make grants
available to public housing agencies as provided in this
section.
(c) Contribution Requirement.--The Secretary may not make
any grant under this section to any applicant unless the
applicant certifies to the Secretary that the applicant will
supplement the amount of assistance provided under this
section with an amount of funds from sources other than this
section equal to not less than 5 percent of the amount
provided under this section, including amounts from other
Federal sources, any State or local government sources, any
private contributions, and the value of any in-kind services
or administrative costs provided.
(d) Eligible Activities.--Grants under this section may be
used for activities to carry out revitalization programs for
severely distressed public housing, including--
(1) architectural and engineering work, including the
redesign, reconstruction, or redevelopment of a severely
distressed public housing development, including the site on
which the development is located;
(2) the demolition, sale, or lease of the site, in whole or
in part;
(3) covering the administrative costs of the applicant,
which may not exceed such portion of the assistance provided
under this section as the Secretary may prescribe;
(4) payment of reasonable legal fees;
(5) providing reasonable moving expenses for residents
displaced as a result of the revitalization of the
development;
(6) economic development activities that promote the
economic self-sufficiency of residents under the
revitalization program;
(7) necessary management improvements;
(8) leveraging other resources, including additional
housing resources, retail supportive services, jobs, and
other economic development uses on or near the development
that will benefit future residents of the site;
(9) replacement housing and housing assistance under title
XIII;
(10) transitional security activities; and
(11) necessary supportive services, except that not more
than 10 percent of the amount of any grant may be used for
activities under this paragraph.
(e) Application and Selection.--
(1) Application.--An application for a grant under this
section shall contain such information and shall be submitted
at such time and in accordance with such procedures, as the
Secretary shall prescribe.
(2) Selection criteria.--The Secretary shall establish
selection criteria for the award of grants under this
section, which shall include--
(A) the relationship of the grant to the local housing
management plan for the public housing agency and how the
grant will result in a revitalized site that will enhance the
neighborhood in which the development is located;
(B) the capability and record of the applicant public
housing agency, or any alternative management agency for the
agency, for managing large-scale redevelopment or
modernization projects, meeting construction timetables, and
obligating amounts in a timely manner;
(C) the extent to which the public housing agency could
undertake such activities without a grant under this section;
(D) the extent of involvement of residents, State and local
governments, private service providers, financing entities,
and developers, in the development of a revitalization
program for the development; and
(E) the amount of funds and other resources to be leveraged
by the grant.
[[Page H5793]]
The Secretary shall give preference in selection to any
public housing agency that has been awarded a planning grant
under section 24(c) of the United States Housing Act of 1937
(as in effect before the effective date of the repeal under
section 1601(b) of this Act).
(f) Cost Limits.--Subject to the provisions of this
section, the Secretary--
(1) shall establish cost limits on eligible activities
under this section sufficient to provide for effective
revitalization programs; and
(2) may establish other cost limits on eligible activities
under this section.
(g) Demolition and Replacement.--Any severely distressed
public housing demolished or disposed of pursuant to a
revitalization plan and any public housing produced in lieu
of such severely distressed housing, shall be subject to the
provisions of section 1261.
(h) Administration by Other Entities.--The Secretary may
require a grantee under this section to make arrangements
satisfactory to the Secretary for use of an entity other than
the public housing agency to carry out activities assisted
under the revitalization plan, if the Secretary determines
that such action will help to effectuate the purposes of this
section.
(i) Withdrawal of Funding.--If a grantee under this section
does not proceed expeditiously, in the determination of the
Secretary, the Secretary shall withdraw any grant amounts
under this section that have not been obligated by the public
housing agency. The Secretary shall redistribute any
withdrawn amounts to one or more public housing agencies
eligible for assistance under this section or to one or more
other entities capable of proceeding expeditiously in the
same locality in carrying out the revitalization plan of the
original grantee.
(j) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Applicant.--The term ``applicant'' means--
(A) any public housing agency that is not designated as
troubled pursuant to section 1533(a);
(B) any public housing agency or private housing management
agent selected, or receiver appointed pursuant, to section
1545; and
(C) any public housing agency that is designated as
troubled pursuant to section 1533(a) that--
(i) is so designated principally for reasons that will not
affect the capacity of the agency to carry out a
revitalization program;
(ii) is making substantial progress toward eliminating the
deficiencies of the agency; or
(iii) is otherwise determined by the Secretary to be
capable of carrying out a revitalization program.
(2) Private nonprofit corporation.--The term ``private
nonprofit organization'' means any private nonprofit
organization (including a State or locally chartered
nonprofit organization) that--
(A) is incorporated under State or local law;
(B) has no part of its net earnings inuring to the benefit
of any member, founder, contributor, or individual;
(C) complies with standards of financial accountability
acceptable to the Secretary; and
(D) has among its purposes significant activities related
to the provision of decent housing that is affordable to very
low-income families.
(3) Severely distressed public housing.--The term
``severely distressed public housing'' means a public housing
development (or building in a development) that--
(A) requires major redesign, reconstruction or
redevelopment, or partial or total demolition, to correct
serious deficiencies in the original design (including
inappropriately high population density), deferred
maintenance, physical deterioration or obsolescence of major
systems and other deficiencies in the physical plant of the
development;
(B) is a significant contributing factor to the physical
decline of and disinvestment by public and private entities
in the surrounding neighborhood;
(C)(i) is occupied predominantly by families who are very
low-income families with children, are unemployed, and
dependent on various forms of public assistance; and
(ii) has high rates of vandalism and criminal activity
(including drug-related criminal activity) in comparison to
other housing in the area;
(D) cannot be revitalized through assistance under other
programs, such as the public housing block grant program
under this title, or the programs under sections 9 and 14 of
the United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 1601(b) of
this Act), because of cost constraints and inadequacy of
available amounts; and
(E) in the case of individual buildings, is, in the
Secretary's determination, sufficiently separable from the
remainder of the development of which the building is part to
make use of the building feasible for purposes of this
section.
(4) Supportive services.--The term ``supportive services''
includes all activities that will promote upward mobility,
self-sufficiency, and improved quality of life for the
residents of the public housing development involved,
including literacy training, job training, day care, and
economic development activities.
(k) Annual Report.--The Secretary shall submit to the
Congress an annual report setting forth--
(1) the number, type, and cost of public housing units
revitalized pursuant to this section;
(2) the status of developments identified as severely
distressed public housing;
(3) the amount and type of financial assistance provided
under and in conjunction with this section; and
(4) the recommendations of the Secretary for statutory and
regulatory improvements to the program established by this
section.
(l) Funding.--
(1) Authorization of appropriations.--There are authorized
to be appropriated for grants under this section $500,000,000
for each of fiscal years 1998, 1999, and 2000.
(2) Technical assistance.--Of the amount appropriated
pursuant to paragraph (1) for any fiscal year, the Secretary
may use not more than 0.50 percent for technical assistance.
Such assistance may be provided directly or indirectly by
grants, contracts, or cooperative agreements, and shall
include training, and the cost of necessary travel for
participants in such training, by or to officials of the
Department of Housing and Urban Development, of public
housing agencies, and of residents.
(m) Sunset.--No assistance may be provided under this
section after September 30, 2000.
(n) Treatment of Previous Selections.--A public housing
agency that has been selected to receive amounts under the
notice of funding availability for fiscal year 1996 amounts
for the HOPE VI program (provided under the heading ''public
housing demolition, site revitalization, and replacement
housing grants'' in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note)
(enacted as section 101(e) of Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (Public Law 104-
134; 110 Stat. 1321-269)) may apply to the Secretary of
Housing and Urban Development for a waiver of the total
development cost rehabilitation requirement otherwise
applicable under such program, and the Secretary may waive
such requirement, but only (1) to the extent that a
designated site for use of such amounts does not have
dwelling units that are considered to be obsolete under
Department of Housing and Urban Development regulations in
effect upon the date of the enactment of this Act, and (2) if
the Secretary determines that the public housing agency will
continue to comply with the purposes of the program
notwithstanding such waiver.
SEC. 1263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.
(a) In General.--A public housing agency may convert any
public housing development (or portion thereof) owned and
operated by the agency to a system of choice-based rental
housing assistance under title XIII, in accordance with this
section.
(b) Assessment and Plan Requirement.--In converting under
this section to a choice-based rental housing assistance
system, the public housing agency shall develop a conversion
assessment and plan under this subsection, in consultation
with the appropriate public officials and with significant
participation by the residents of the development (or portion
thereof), which assessment and plan shall--
(1) be consistent with and part of the local housing
management plan for the agency;
(2) describe the conversion and future use or disposition
of the public housing development, including an impact
analysis on the affected community;
(3) include a cost analysis that demonstrates whether or
not the cost (both on a net present value basis and in terms
of new budget authority requirements) of providing choice-
based rental housing assistance under title XIII for the same
families in substantially similar dwellings over the same
period of time is less expensive than continuing public
housing assistance in the public housing development proposed
for conversion for the remaining useful life of the
development;
(4) identify the actions, if any, that the public housing
agency will take with regard to converting any public housing
development or developments (or portions thereof) of the
agency to a system of choice-based rental housing assistance
under title XIII;
(5) require the public housing agency to--
(A) notify the families residing in the public housing
development subject to the conversion, in accordance with any
guidelines issued by the Secretary governing such
notifications, that--
(i) the development will be removed from the inventory of
the public housing agency; and
(ii) the families displaced by such action will receive
choice-based housing assistance;
(B) provide any necessary counseling for families displaced
by such action to facilitate relocation; and
(C) provide any reasonable relocation expenses for families
displaced by such action; and
(6) ensure that each family that is a resident of the
development is relocated to other safe, clean, and healthy
affordable housing, which is, to the maximum extent
practicable, housing of the family's choice, including
choice-based assistance under title XIII (provided that with
respect to choice-based assistance, the preceding requirement
shall be fulfilled only upon the relocation of such family
into such housing).
(c) Streamlined Assessment and Plan.--At the discretion of
the Secretary or at the
[[Page H5794]]
request of a public housing agency, the Secretary may waive
any or all of the requirements of subsection (b) or otherwise
require a streamlined assessment with respect to any public
housing development or class of public housing developments.
(d) Implementation of Conversion Plan.--
(1) In general.--A public housing agency may implement a
conversion plan only if the conversion assessment under this
section demonstrates that the conversion--
(A) will not be more expensive than continuing to operate
the public housing development (or portion thereof) as public
housing; and
(B) will principally benefit the residents of the public
housing development (or portion thereof) to be converted, the
public housing agency, and the community.
(2) Disapproval.--The Secretary shall disapprove a
conversion plan only if the plan is plainly inconsistent with
the conversion assessment under subsection (b) or there is
reliable information and data available to the Secretary that
contradicts that conversion assessment.
(e) Other Requirements.--To the extent approved by the
Secretary, the funds used by the public housing agency to
provide choice-based rental housing assistance under title
XIII shall be added to the housing assistance payment
contract administered by the public housing agency or any
entity administering the contract on behalf of the public
housing agency.
(f) Savings Provision.--This section does not affect any
contract or other agreement entered into under section 22 of
the United States Housing Act of 1937 (as such section
existed before the effective date of the repeal under section
1601(b) of this Act).
Subtitle F--Mixed-Finance Public Housing
SEC. 1271. AUTHORITY.
Notwithstanding sections 1203 and 1262, the Secretary may,
upon such terms and conditions as the Secretary may
prescribe, authorize a public housing agency to provide for
the use of grant amounts allocated and provided from the
capital fund or from a grant under section 1262, to produce
mixed- finance housing developments, or replace or revitalize
existing public housing dwelling units with mixed-finance
housing developments, but only if the agency submits to the
Secretary a plan for such housing that is approved pursuant
to section 1273 by the Secretary.
SEC. 1272. MIXED-FINANCE HOUSING DEVELOPMENTS.
(a) In General.--For purposes of this subtitle, the term
``mixed-finance housing'' means low-income housing or mixed-
income housing (as described in section 1221(c)(2)) for which
the financing for production or revitalization is provided,
in part, from entities other than the public housing agency.
(b) Production.--A mixed-finance housing development shall
be produced or revitalized, and owned--
(1) by a public housing agency or by an entity affiliated
with a public housing agency;
(2) by a partnership, a limited liability company, or other
entity in which the public housing agency (or an entity
affiliated with a public housing agency) is a general
partner, is a managing member, or otherwise participates in
the activities of the entity;
(3) by any entity that grants to the public housing agency
the option to purchase the public housing project during the
20-year period beginning on the date of initial occupancy of
the public housing project in accordance with section
42(l)(7) of the Internal Revenue Code of 1986; or
(4) in accordance with such other terms and conditions as
the Secretary may prescribe by regulation.
This subsection may not be construed to require production or
revitalization, and ownership, by the same entity.
SEC. 1273. MIXED-FINANCE HOUSING PLAN.
The Secretary may approve a plan for production or
revitalization of mixed-finance housing under this subtitle
only if the Secretary determines that--
(1) the public housing agency has the ability, or has
provided for an entity under section 1272(b) that has the
ability, to use the amounts provided for use under the plan
for such housing, effectively, either directly or through
contract management;
(2) the plan provides permanent financing commitments from
a sufficient number of sources other than the public housing
agency, which may include banks and other conventional
lenders, States, units of general local government, State
housing finance agencies, secondary market entities, and
other financial institutions;
(3) the plan provides for use of amounts provided under
section 1271 by the public housing agency for financing the
mixed-income housing in the form of grants, loans, advances,
or other debt or equity investments, including collateral or
credit enhancement of bonds issued by the agency or any State
or local governmental agency for production or revitalization
of the development; and
(4) the plan complies with any other criteria that the
Secretary may establish.
SEC. 1274. RENT LEVELS FOR HOUSING FINANCED WITH LOW-INCOME
HOUSING TAX CREDIT.
With respect to any dwelling unit in a mixed-finance
housing development that is a low-income dwelling unit for
which amounts from a block grant under this title are used
and that is assisted pursuant to the low-income housing tax
credit under section 42 of the Internal Revenue Code of 1986,
the rents charged to the residents of the unit shall be
determined in accordance with this title, but shall not in
any case exceed the amounts allowable under such section 42.
SEC. 1275. CARRY-OVER OF ASSISTANCE FOR REPLACED HOUSING.
In the case of a mixed-finance housing development that is
replacement housing for public housing demolished or disposed
of, or is the result of the revitalization of existing public
housing, the share of assistance received from the capital
fund and the operating fund by the public housing agency that
owned or operated the housing demolished, disposed of, or
revitalized shall not be reduced because of such demolition,
disposition, or revitalization after the commencement of such
demolition, disposition, or revitalization, unless--
(1) upon the expiration of the 18-month period beginning
upon the approval of the plan under section 1273 for the
mixed-finance housing development, the agency does not have
binding commitments for production or revitalization, or a
construction contract, for such development;
(2) upon the expiration of the 4-year period beginning upon
the approval of the plan, the mixed-finance housing
development is not substantially ready for occupancy and is
placed under the block grant contract for the agency under
section 1201; or
(3) the number of dwelling units in the mixed-finance
housing development that are made available for occupancy
only by low-income families is substantially less than the
number of such dwelling units in the public housing
demolished, disposed of, or revitalized.
The Secretary may extend the period under paragraph (1) or
(2) for a public housing agency if the Secretary determines
that circumstances beyond the control of the agency caused
the agency to fail to meet the deadline under such paragraph.
Subtitle G--General Provisions
SEC. 1281. PAYMENT OF NON-FEDERAL SHARE.
Rental or use-value of buildings or facilities paid for, in
whole or in part, from production, modernization, or
operation costs financed under this title may be used as the
non-Federal share required in connection with activities
undertaken under Federal grant-in-aid programs which provide
social, educational, employment, and other services to the
residents in a project assisted under this title.
SEC. 1282. AUTHORIZATION OF APPROPRIATIONS FOR BLOCK GRANTS.
There are authorized to be appropriated for grants under
this title, the following amounts:
(1) Capital fund.--For the allocations from the capital
fund for grants, $2,500,000,000 for each of fiscal years
1998, 1999, 2000, 2001, and 2002.
(2) Operating fund.--For the allocations from the operating
fund for grants, $2,900,000,000 for each of fiscal years
1998, 1999, 2000, 2001, and 2002.
SEC. 1283. FUNDING FOR OPERATION SAFE HOME.
Of any amounts made available for fiscal years 1998 and
1999 for carrying out the Community Partnerships Against
Crime Act of 1997 (as so designated pursuant to section
1624(a) of this Act), not more than $20,000,000 shall be
available in each such fiscal year, for use under the
Operation Safe Home program administered by the Office of the
Inspector General of the Department of Housing and Urban
Development, for law enforcement efforts to combat violent
crime on or near the premises of public and federally
assisted housing.
SEC. 1284. FUNDING FOR RELOCATION OF VICTIMS OF DOMESTIC
VIOLENCE.
Of any amounts made available for fiscal years 1998, 1999,
2000, 2001, and 2002 for choice-based housing assistance
under title XIII of this Act, not more than $700,000 shall be
available in each such fiscal year for relocating residents
of public housing (including providing assistance for costs
of relocation and housing assistance under title XIII of this
Act) who are residing in public housing, who have been
subject to domestic violence, and for whom provision of
assistance is likely to reduce or eliminate the threat of
subsequent violence to the members of the family. The
Secretary shall establish procedures for eligibility and
administration of assistance under this section.
TITLE XIII--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE
FOR LOW-INCOME FAMILIES
Subtitle A--Allocation
SEC. 1301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE AMOUNTS.
To the extent that amounts to carry out this title are made
available, the Secretary may enter into contracts with public
housing agencies for each fiscal year to provide housing
assistance under this title.
SEC. 1302. CONTRACTS WITH PHA'S.
(a) Condition of Assistance.--The Secretary may provide
amounts under this title to a public housing agency for a
fiscal year only if the Secretary has entered into a contract
under this section with the public housing agency, under
which the Secretary shall provide such agency with amounts
(in the amount of the allocation for the agency determined
pursuant to section 1304) for housing assistance under this
title for low-income families.
(b) Use for Housing Assistance.--A contract under this
section shall require a public housing agency to use amounts
provided
[[Page H5795]]
under this title to provide housing assistance in any manner
authorized under this title.
(c) Annual Obligation of Authority.--A contract under this
title shall provide amounts for housing assistance for 1
fiscal year covered by the contract.
(d) Enforcement of Housing Quality Requirements.--Each
contract under this section shall require the public housing
agency administering assistance provided under the contract--
(1) to ensure compliance, under each housing assistance
payments contract entered into pursuant to the contract under
this section, with the provisions of the housing assistance
payments contract included pursuant to section 1351(c)(4);
and
(2) to establish procedures for assisted families to notify
the agency of any noncompliance with such provisions.
SEC. 1303. ELIGIBILITY OF PHA'S FOR ASSISTANCE AMOUNTS.
The Secretary may provide amounts available for housing
assistance under this title pursuant to the formula
established under section 1304(a) to a public housing agency
only if--
(1) the agency has submitted a local housing management
plan to the Secretary for such fiscal year and applied to the
Secretary for such assistance;
(2) the plan has been determined to comply with the
requirements under section 1106 and the Secretary has not
notified the agency that the plan fails to comply with such
requirements;
(3) no member of the board of directors or other governing
body of the agency, or the executive director, has been
convicted of a felony; and
(4) the agency has not been disqualified for assistance
pursuant to title XV.
SEC. 1304. ALLOCATION OF AMOUNTS.
(a) Formula Allocation.--
(1) In general.--When amounts for assistance under this
title are first made available for reservation, after
reserving amounts in accordance with subsections (b)(3) and
(c), the Secretary shall allocate such amounts, only among
public housing agencies meeting the requirements under this
title to receive such assistance, on the basis of a formula
that is established in accordance with paragraph (2) and
based upon appropriate criteria to reflect the needs of
different States, areas, and communities, using the most
recent data available from the Bureau of the Census of the
Department of Commerce and the comprehensive housing
affordability strategy under section 105 of the Cranston-
Gonzalez National Affordable Housing Act (or any consolidated
plan incorporating such strategy) for the applicable
jurisdiction. The Secretary may establish a minimum
allocation amount, in which case only the public housing
agencies that, pursuant to the formula, are provided an
amount equal to or greater than the minimum allocation
amount, shall receive an allocation.
(2) Regulations.--The formula under this subsection shall
be established by regulation issued by the Secretary.
Notwithstanding sections 563(a) and 565(a) of title 5, United
States Code, any proposed regulation containing such formula
shall be issued pursuant to a negotiated rulemaking procedure
under subchapter III of chapter 5 of such title and the
Secretary shall establish a negotiated rulemaking committee
for development of any such proposed regulations.
(b) Allocation Considerations.--
(1) Limitation on reallocation for another state.--Any
amounts allocated for a State or areas or communities within
a State that are not likely to be used within the fiscal year
for which the amounts are provided shall not be reallocated
for use in another State, unless the Secretary determines
that other areas or communities within the same State (that
are eligible for amounts under this title) cannot use the
amounts within the same fiscal year.
(2) Effect of receipt of tenant-based assistance for
disabled families.--The Secretary may not consider the
receipt by a public housing agency of assistance under
section 811(b)(1) of the Cranston-Gonzalez National
Affordable Housing Act, or the amount received, in approving
amounts under this title for the agency or in determining the
amount of such assistance to be provided to the agency.
(3) Exemption from formula allocation.--The formula
allocation requirements of subsection (a) shall not apply to
any assistance under this title that is approved in
appropriation Acts for uses that the Secretary determines are
incapable of geographic allocation, including amendments of
existing housing assistance payments contracts, renewal of
such contracts, assistance to families that would otherwise
lose assistance due to the decision of the project owner to
prepay the project mortgage or not to renew the housing
assistance payments contract, assistance to prevent
displacement from public or assisted housing or to provide
replacement housing in connection with the demolition or
disposition of public housing, assistance for relocation from
public housing, assistance in connection with protection of
crime witnesses, assistance for conversion from leased
housing contracts under section 23 of the United States
Housing Act of 1937 (as in effect before the enactment of the
Housing and Community Development Act of 1974), and
assistance in support of the property disposition and
portfolio management functions of the Secretary.
(c) Recapture of Amounts.--
(1) Authority.--In each fiscal year, from any budget
authority made available for assistance under this title or
section 8 of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
1601(b) of this Act) that is obligated to a public housing
agency but remains unobligated by the agency upon the
expiration of the 8-month period beginning upon the initial
availability of such amounts for obligation by the agency,
the Secretary may deobligate an amount, as determined by the
Secretary, not exceeding 50 percent of such unobligated
amount.
(2) Use.--The Secretary may reallocate and transfer any
amounts deobligated under paragraph (1) only to public
housing agencies in areas that the Secretary determines have
received less funding than other areas, based on the relative
needs of all areas.
SEC. 1305. ADMINISTRATIVE FEES.
(a) Fee for Ongoing Costs of Administration.--
(1) In general.--The Secretary shall establish fees for the
costs of administering the choice-based housing assistance
program under this title.
(2) Fiscal year 1998.--
(A) Calculation.--For fiscal year 1998, the fee for each
month for which a dwelling unit is covered by a contract for
assistance under this title shall be--
(i) in the case of a public housing agency that, on an
annual basis, is administering a program for not more than
600 dwelling units, 7.65 percent of the base amount; and
(ii) in the case of an agency that, on an annual basis, is
administering a program for more than 600 dwelling units--
(I) for the first 600 units, 7.65 percent of the base
amount; and
(II) for any additional dwelling units under the program,
7.0 percent of the base amount.
(B) Base amount.--For purposes of this paragraph, the base
amount shall be the higher of--
(i) the fair market rental established under section 8(c)
of the United States Housing Act of 1937 (as in effect
immediately before the effective date of the repeal under
section 1601(b) of this Act) for fiscal year 1993 for a 2-
bedroom existing rental dwelling unit in the market area of
the agency, and
(ii) the amount that is the lesser of (I) such fair market
rental for fiscal year 1994 or (II) 103.5 percent of the
amount determined under clause (i),
adjusted based on changes in wage data or other objectively
measurable data that reflect the costs of administering the
program, as determined by the Secretary. The Secretary may
require that the base amount be not less than a minimum
amount and not more than a maximum amount.
(3) Subsequent fiscal years.--For subsequent fiscal years,
the Secretary shall publish a notice in the Federal Register,
for each geographic area, establishing the amount of the fee
that would apply for public housing agencies administering
the program, based on changes in wage data or other
objectively measurable data that reflect the costs of
administering the program, as determined by the Secretary.
(4) Increase.--The Secretary may increase the fee if
necessary to reflect the higher costs of administering small
programs and programs operating over large geographic areas.
(b) Fee for Preliminary Expenses.--The Secretary shall also
establish reasonable fees (as determined by the Secretary)
for--
(1) the costs of preliminary expenses, in the amount of
$500, for a public housing agency, but only in the first year
that the agency administers a choice-based housing assistance
program under this title, and only if, immediately before the
effective date of this division, the agency was not
administering a tenant-based rental assistance program under
the United States Housing Act of 1937 (as in effect
immediately before such effective date), in connection with
its initial increment of assistance received;
(2) the costs incurred in assisting families who experience
difficulty (as determined by the Secretary) in obtaining
appropriate housing under the programs; and
(3) extraordinary costs approved by the Secretary.
(c) Transfer of Fees in Cases of Concurrent Geographical
Jurisdiction.--In each fiscal year, if any public housing
agency provides tenant-based rental assistance under section
8 of the United States Housing Act of 1937 or housing
assistance under this title on behalf of a family who uses
such assistance for a dwelling unit that is located within
the jurisdiction of such agency but is also within the
jurisdiction of another public housing agency, the Secretary
shall take such steps as may be necessary to ensure that the
public housing agency that provides the services for a family
receives all or part of the administrative fee under this
section (as appropriate).
SEC. 1306. AUTHORIZATIONS OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated for
providing public housing agencies with housing assistance
under this title, such sums as may be necessary for each of
fiscal years 1998, 1999, 2000, 2001, and 2002 to provide
amounts for incremental assistance under this title, for
renewal of expiring contracts under section 1302 of this Act
and renewal under this title of expiring contracts for
tenant-based rental assistance under section 8 of the United
States Housing Act of 1937 (as in effect before the effective
date of the repeal under section 1601(b) of
[[Page H5796]]
this Act), and for replacement needs for public housing under
title XII.
(b) Assistance for Disabled Families.--
(1) Authorization of appropriations.--There is authorized
to be appropriated, for choice-based housing assistance under
this title to be used in accordance with paragraph (2),
$50,000,000 for fiscal year 1998, and such sums as may be
necessary for each subsequent fiscal year.
(2) Use.--The Secretary shall provide amounts made
available under paragraph (1) to public housing agencies only
for use to provide housing assistance under this title for
nonelderly disabled families (including such families
relocating pursuant to designation of a public housing
development under section 1227 or the establishment of
occupancy restrictions in accordance with section 658 of the
Housing and Community Development Act of 1992 and other
nonelderly disabled families who have applied to the agency
for housing assistance under this title).
(3) Allocation of amounts.--The Secretary shall allocate
and provide amounts made available under paragraph (1) to
public housing agencies as the Secretary determines
appropriate based on the relative levels of need among the
authorities for assistance for families described in
paragraph (1).
(c) Assistance for Witness Relocation.--Of the amounts made
available for choice-based housing assistance under this
title for each fiscal year, the Secretary, in consultation
with the Inspector General, shall make available such sums as
may be necessary for such housing assistance for the
relocation of witnesses in connection with efforts to combat
crime in public and assisted housing pursuant to requests
from law enforcement and prosecutive agencies.
SEC. 1307. CONVERSION OF SECTION 8 ASSISTANCE.
(a) In General.--Any amounts made available to a public
housing agency under a contract for annual contributions for
assistance under section 8 of the United States Housing Act
of 1937 (as in effect before the effective date of the repeal
under section 1601(b) of this Act) that have not been
obligated for such assistance by such agency before such
effective date shall be used to provide assistance under this
title, except to the extent the Secretary determines such use
is inconsistent with existing commitments.
(b) Exception.--Subsection (a) shall not apply to any
amounts made available under a contract for housing
constructed or substantially rehabilitated pursuant to
section 8(b)(2) of the United States Housing Act of 1937, as
in effect before October 1, 1983.
SEC. 1308. RECAPTURE AND REUSE OF ANNUAL CONTRACT PROJECT
RESERVES UNDER CHOICE-BASED HOUSING ASSISTANCE
AND SECTION 8 TENANT-BASED ASSISTANCE PROGRAMS.
To the extent that the Secretary determines that the amount
in the reserve account for annual contributions contracts
(for housing assistance under this title or tenant-based
assistance under section 8 of the United States Housing Act
of 1937) that is under contract with a public housing agency
for such assistance is in excess of the amounts needed by the
agency, the Secretary shall recapture such excess amount. The
Secretary may hold recaptured amounts in reserve until needed
to enter into, amend, or renew contracts under this title or
to amend or renew contracts under section 8 of such Act for
tenant-based assistance with any agency.
Subtitle B--Choice-Based Housing Assistance for Eligible Families
SEC. 1321. ELIGIBLE FAMILIES AND PREFERENCES FOR ASSISTANCE.
(a) Low-Income Requirement.--Housing assistance under this
title may be provided only on behalf of a family that--
(1) at the time that such assistance is initially provided
on behalf of the family, is determined by the public housing
agency to be a low-income family; or
(2) qualifies to receive such assistance under any other
provision of Federal law.
(b) Income Targeting.--Of the families initially assisted
under this title by a public housing agency in any year, not
less than 40 percent shall be families whose incomes do not
exceed 30 percent of the area median income, as determined by
the Secretary with adjustments for smaller and larger
families. The Secretary may establish income ceiling higher
or lower than 30 percent of the area median income on the
basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes.
(c) Reviews of Family Incomes.--
(1) In general.--Reviews of family incomes for purposes of
this title shall be subject to the provisions of section 904
of the Stewart B. McKinney Homeless Assistance Amendments Act
of 1988 and shall be conducted upon the initial provision of
housing assistance for the family and thereafter not less
than annually.
(2) Procedures.--Each public housing agency administering
housing assistance under this title shall establish
procedures that are appropriate and necessary to ensure that
income data provided to the agency and owners by families
applying for or receiving housing assistance from the agency
is complete and accurate.
(d) Preferences for Assistance.--
(1) Authority to establish.--Any public housing agency that
receives amounts under this title may establish a system for
making housing assistance available on behalf of eligible
families that provides preference for such assistance to
eligible families having certain characteristics.
(2) Content.--Each system of preferences established
pursuant to this subsection shall be based upon local housing
needs and priorities, as determined by the public housing
agency using generally accepted data sources, including any
information obtained pursuant to an opportunity for public
comment as provided under section 1106(e) and under the
requirements applicable to the comprehensive housing
affordability strategy for the relevant jurisdiction.
(3) Sense of the congress.--It is the sense of the Congress
that, to the greatest extent practicable, public housing
agencies involved in the selection of tenants under the
provisions of this title should adopt preferences for
individuals who are victims of domestic violence.
(e) Portability of Housing Assistance.--
(1) National portability.--An eligible family that is
selected to receive or is receiving assistance under this
title may rent any eligible dwelling unit in any area where a
program is being administered under this title.
Notwithstanding the preceding sentence, a public housing
agency may require that any family not living within the
jurisdiction of the public housing agency at the time the
family applies for assistance from the agency shall, during
the 12-month period beginning on the date of initial receipt
of housing assistance made available on behalf of the family
from such agency, lease and occupy an eligible dwelling unit
located within the jurisdiction served by the agency. The
agency for the jurisdiction into which the family moves shall
have the responsibility for administering assistance for the
family.
(2) Source of funding for a family that moves.--For a
family that has moved into the jurisdiction of a public
housing agency and that, at the time of the move, has been
selected to receive, or is receiving, assistance provided by
another agency, the agency for the jurisdiction into which
the family has moved may, in its discretion, cover the cost
of assisting the family under its contract with the Secretary
or through reimbursement from the other agency under that
agency's contract.
(3) Authority to deny assistance to certain families who
move.--A family may not receive housing assistance as
provided under this subsection if the family has moved from a
dwelling unit in violation of the lease for the dwelling
unit.
(4) Funding allocations.--In providing assistance amounts
under this title for public housing agencies for any fiscal
year, the Secretary may give consideration to any reduction
or increase in the number of resident families under the
program of an agency in the preceding fiscal year as a result
of this subsection.
(f) Confidentiality for Victims of Domestic Violence.--A
public housing agency shall be subject to the restrictions
regarding release of information relating to the identity and
new residence of any family receiving housing assistance who
was a victim of domestic violence that are applicable to
shelters pursuant to the Family Violence Prevention and
Services Act. The agency shall work with the United States
Postal Service to establish procedures consistent with the
confidentiality provisions in the Violence Against Women Act
of 1994.
SEC. 1322. RESIDENT CONTRIBUTION.
(a) Amount.--
(1) Monthly rent contribution.--An assisted family shall
contribute on a monthly basis for the rental of an assisted
dwelling unit an amount that the public housing agency
determines is appropriate with respect to the family and the
unit, but which--
(A) shall not be less than the minimum monthly rental
contribution determined under subsection (b); and
(B) shall not exceed the greatest of--
(i) 30 percent of the monthly adjusted income of the
family;
(ii) 10 percent of the monthly income of the family; and
(iii) if the family is receiving payments for welfare
assistance from a public agency and a part of such payments,
adjusted in accordance with the actual housing costs of the
family, is specifically designated by such agency to meet the
housing costs of the family, the portion of such payments
that is so designated.
(2) Excess rental amount.--In any case in which the monthly
rent charged for a dwelling unit pursuant to the housing
assistance payments contract exceeds the applicable payment
standard (established under section 1353) for the dwelling
unit, the assisted family residing in the unit shall
contribute (in addition to the amount of the monthly rent
contribution otherwise determined under paragraph (1) for
such family) such entire excess rental amount.
(b) Minimum Monthly Rental Contribution.--
(1) In general.--The public housing agency shall determine
the amount of the minimum monthly rental contribution of an
assisted family (which rent shall include any amount allowed
for utilities), which--
(A) shall be based upon factors including the adjusted
income of the family and any other factors that the agency
considers appropriate;
[[Page H5797]]
(B) shall be not less than $25, nor more than $50; and
(C) may be increased annually by the agency, except that no
such annual increase may exceed 10 percent of the amount of
the minimum monthly contribution in effect for the preceding
year.
(2) Hardship provisions.--
(A) In general.--Notwithstanding paragraph (1), a public
housing agency shall grant an exemption in whole or in part
from payment of the minimum monthly rental contribution
established under this paragraph to any assisted family
unable to pay such amount because of financial hardship,
which shall include situations in which (i) the family has
lost eligibility for or is awaiting an eligibility
determination for a Federal, State, or local assistance
program, including a family that includes a member who is an
alien lawfully admitted for permanent residence under the
Immigration and Nationality Act who would be entitled to
public benefits but for title IV of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996; (ii) the family would be evicted as a result of
imposition of the minimum rent; (iii) the income of the
family has decreased because of changed circumstance,
including loss of employment; and (iv) a death in the family
has occurred; and other situations as may be determined by
the agency.
(B) Waiting period.--If an assisted family requests a
hardship exemption under this paragraph and the public
housing agency reasonably determines the hardship to be of a
temporary nature, an exemption shall not be granted during
the 90-day period beginning upon the making of a request for
the exemption. An assisted family may not be evicted during
such 90-day period for nonpayment of rent. In such a case, if
the assisted family thereafter demonstrates that the
financial hardship is of a long-term basis, the agency shall
retroactively exempt the family from the applicability of the
minimum rent requirement for such 90-day period.
(c) Treatment of Changes in Rental Contribution.--
(1) Notification of changes.--A public housing agency shall
promptly notify the owner of an assisted dwelling unit of any
change in the resident contribution by the assisted family
residing in the unit that takes effect immediately or at a
later date.
(2) Collection of retroactive changes.--In the case of any
change in the rental contribution of an assisted family that
affects rental payments previously made, the public housing
agency shall collect any additional amounts required to be
paid by the family under such change directly from the family
and shall refund any excess rental contribution paid by the
family directly to the family.
(d) Phase-In of Rent Contribution Increases.--
(1) In general.--Except as provided in paragraph (2), for
any family that is receiving tenant-based rental assistance
under section 8 of the United States Housing Act of 1937 upon
the initial applicability of the provisions of this title to
such family, if the monthly contribution for rental of an
assisted dwelling unit to be paid by the family upon such
initial applicability is greater than the amount paid by the
family under the provisions of the United States Housing Act
of 1937 immediately before such applicability, any such
resulting increase in rent contribution shall be--
(A) phased in equally over a period of not less than 3
years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if such
increase is more than 10 percent but less than 30 percent of
such contribution before initial applicability.
(2) Exception.--The minimum rent contribution requirement
under subsection (b)(1) shall apply to each family described
in paragraph (1) of this subsection, notwithstanding such
paragraph.
SEC. 1323. RENTAL INDICATORS.
(a) In General.--The Secretary shall establish and issue
rental indicators under this section periodically, but not
less than annually, for existing rental dwelling units that
are eligible dwelling units. The Secretary shall establish
and issue the rental indicators by housing market area (as
the Secretary shall establish) for various sizes and types of
dwelling units.
(b) Amount.--For a market area, the rental indicator
established under subsection (a) for a dwelling unit of a
particular size and type in the market area shall be a dollar
amount that reflects the rental amount for a standard quality
rental unit of such size and type in the market area that is
an eligible dwelling unit.
(c) Effective Date.--The Secretary shall cause the proposed
rental indicators established under subsection (a) for each
market area to be published in the Federal Register with
reasonable time for public comment, and such rental
indicators shall become effective upon the date of
publication in final form in the Federal Register.
(d) Annual Adjustment.--Each rental indicator in effect
under this section shall be adjusted to be effective on
October 1 of each year to reflect changes, based on the most
recent available data trended so that the indicators will be
current for the year to which they apply, in rents for
existing rental dwelling units of various sizes and types in
the market area suitable for occupancy by families assisted
under this title.
SEC. 1324. LEASE TERMS.
Rental assistance may be provided for an eligible dwelling
unit only if the assisted family and the owner of the
dwelling unit enter into a lease for the unit that--
(1) provides for a single lease term of 12 months and
continued tenancy after such term under a periodic tenancy on
a month-to-month basis;
(2) contains terms and conditions specifying that
termination of tenancy during the term of a lease shall be
subject to the provisions set forth in sections 1642 and
1643; and
(3) is set forth in the standard form, which is used in the
local housing market area by the owner and applies generally
to any other tenants in the property who are not assisted
families, together with any addendum necessary to include the
many terms required under this section.
A lease may include any addenda appropriate to set forth the
provisions under this title.
SEC. 1325. TERMINATION OF TENANCY.
Each housing assistance payments contract shall provide
that the owner shall conduct the termination of tenancy of
any tenant of an assisted dwelling unit under the contract in
accordance with applicable State or local laws, including
providing any notice of termination required under such laws.
SEC. 1326. ELIGIBLE OWNERS.
(a) Ownership Entity.--Rental assistance under this title
may be provided for any eligible dwelling unit for which the
owner is any public agency, private person or entity
(including a cooperative), nonprofit organization, agency of
the Federal Government, or public housing agency.
(b) Ineligible Owners.--
(1) In general.--Notwithstanding subsection (a), a public
housing agency--
(A) may not enter into a housing assistance payments
contract (or renew an existing contract) covering a dwelling
unit that is owned by an owner who is debarred, suspended, or
subject to limited denial of participation under part 24 of
title 24, Code of Federal Regulations;
(B) may prohibit, or authorize the termination or
suspension of, payment of housing assistance under a housing
assistance payments contract in effect at the time such
debarment, suspension, or limited denial of participation
takes effect.
If the public housing agency takes action under subparagraph
(B), the agency shall take such actions as may be necessary
to protect assisted families who are affected by the action,
which may include the provision of additional assistance
under this title to such families.
(2) Prohibition of sale or rental to related parties.--The
Secretary shall establish guidelines to prevent housing
assistance payments for a dwelling unit that is owned by any
spouse, child, or other party who allows an owner described
in paragraph (1) to maintain control of the unit.
SEC. 1327. SELECTION OF DWELLING UNITS.
(a) Family Choice.--The determination of the dwelling unit
in which an assisted family resides and for which housing
assistance is provided under this title shall be made solely
by the assisted family, subject to the provisions of this
title and any applicable law.
(b) Deed Restrictions.--Housing assistance may not be used
in any manner that abrogates any local deed restriction that
applies to any housing consisting of 1 to 4 dwelling units.
Nothing in this section may be construed to affect the
provisions or applicability of the Fair Housing Act.
SEC. 1328. ELIGIBLE DWELLING UNITS.
(a) In General.--A dwelling unit shall be an eligible
dwelling unit for purposes of this title only if the public
housing agency to provide housing assistance for the dwelling
unit determines that the dwelling unit--
(1) is an existing dwelling unit that is not located within
a nursing home or the grounds of any penal, reformatory,
medical, mental, or similar public or private institution;
and
(2) complies--
(A) in the case of a dwelling unit located in a
jurisdiction which has in effect laws, regulations,
standards, or codes regarding habitability of residential
dwellings, with such applicable laws, regulations, standards,
or codes; or
(B) in the case of a dwelling unit located in a
jurisdiction which does not have in effect laws, regulations,
standards, or codes described in subparagraph (A), with the
housing quality standards established under subsection (c).
Each public housing agency providing housing assistance shall
identify, in the local housing management plan for the
agency, whether the agency is utilizing the standard under
subparagraph (A) or (B) of paragraph (2).
(b) Determinations.--
(1) In general.--A public housing agency shall make the
determinations required under subsection (a) pursuant to an
inspection of the dwelling unit conducted before any
assistance payment is made for the unit.
(2) Expeditious inspection.--Inspections of dwelling units
under this subsection shall be made before the expiration of
the 15-day period beginning upon a request by the resident or
landlord to the public housing agency. The performance of the
agency in meeting the 15-day inspection deadline shall be
taken into account in assessing the performance of the
agency.
(c) Federal Housing Quality Standards.--The Secretary shall
establish housing quality standards under this subsection
that
[[Page H5798]]
ensure that assisted dwelling units are safe, clean, and
healthy. Such standards shall include requirements relating
to habitability, including maintenance, health and sanitation
factors, condition, and construction of dwellings, and shall,
to the greatest extent practicable, be consistent with the
standards established under section 1232(b). The Secretary
shall differentiate between major and minor violations of
such standards.
(d) Annual Inspections.--Each public housing agency
providing housing assistance shall make an annual inspection
of each assisted dwelling unit during the term of the housing
assistance payments contracts for the unit to determine
whether the unit is maintained in accordance with the
requirements under subsection (a)(2). The agency shall retain
the records of the inspection for a reasonable time and shall
make the records available upon request to the Secretary, the
Inspector General for the Department of Housing and Urban
Development, and any auditor conducting an audit under
section 1541.
(e) Inspection Guidelines.--The Secretary shall establish
procedural guidelines and performance standards to facilitate
inspections of dwelling units and conform such inspections
with practices utilized in the private housing market. Such
guidelines and standards shall take into consideration
variations in local laws and practices of public housing
agencies and shall provide flexibility to authorities
appropriate to facilitate efficient provision of assistance
under this title.
(f) Rule of Construction.--This section may not be
construed to prevent the provision of housing assistance in
connection with supportive services for elderly or disabled
families.
SEC. 1329. HOMEOWNERSHIP OPTION.
(a) In General.--A public housing agency providing housing
assistance under this title may provide homeownership
assistance to assist eligible families to purchase a dwelling
unit (including purchase under lease-purchase homeownership
plans).
(b) Requirements.--A public housing agency providing
homeownership assistance under this section shall, as a
condition of an eligible family receiving such assistance,
require the family to--
(1) demonstrate that the family has sufficient income from
employment or other sources (other than public assistance),
as determined in accordance with requirements established by
the agency; and
(2) meet any other initial or continuing requirements
established by the public housing agency.
(c) Downpayment Requirement.--
(1) In general.--A public housing agency may establish
minimum downpayment requirements, if appropriate, in
connection with loans made for the purchase of dwelling units
for which homeownership assistance is provided under this
section. If the agency establishes a minimum downpayment
requirement, the agency shall permit the family to use grant
amounts, gifts from relatives, contributions from private
sources, and similar amounts as downpayment amounts in such
purchase, subject to the requirements of paragraph (2).
(2) Direct family contribution.--In purchasing housing
pursuant to this section subject to a downpayment
requirement, each family shall contribute an amount of the
downpayment, from resources of the family other than grants,
gifts, contributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the
purchase price.
(d) Ineligibility Under Other Programs.--A family may not
receive homeownership assistance pursuant to this section
during any period when assistance is being provided for the
family under other Federal homeownership assistance programs,
as determined by the Secretary, including assistance under
the HOME Investment Partnerships Act, the Homeownership and
Opportunity Through HOPE Act, title II of the Housing and
Community Development Act of 1987, and section 502 of the
Housing Act of 1949.
SEC. 1330. ASSISTANCE FOR RENTAL OF MANUFACTURED HOMES.
(a) Authority.--Nothing in this title may be construed to
prevent a public housing agency from providing housing
assistance under this title on behalf of a low-income family
for the rental of--
(1) a manufactured home that is the principal residence of
the family and the real property on which the home is
located; or
(2) the real property on which is located a manufactured
home, which is owned by the family and is the principal
residence of the family.
(b) Assistance for Certain Families Owning Manufactured
Homes.--
(1) Authority.--Notwithstanding section 1351 or any other
provision of this title, a public housing agency that
receives amounts under a contract under section 1302 may
enter into a housing assistance payment contract to make
assistance payments under this title to a family that owns a
manufactured home, but only as provided in paragraph (2).
(2) Limitations.--In the case only of a low-income family
that owns a manufactured home, rents the real property on
which it is located, and to whom housing assistance under
this title has been made available for the rental of such
property, the public housing agency making such assistance
available shall enter into a contract to make housing
assistance payments under this title directly to the family
(rather than to the owner of such real property) if--
(A) the owner of the real property refuses to enter into a
contract to receive housing assistance payments pursuant to
section 1351(a);
(B) the family was residing in such manufactured home on
such real property at the time such housing assistance was
initially made available on behalf of the family;
(C) the family provides such assurances to the agency, as
the Secretary may require, to ensure that amounts from the
housing assistance payments are used for rental of the real
property; and
(D) the rental of the real property otherwise complies with
the requirements for assistance under this title.
A contract pursuant to this subsection shall be subject to
the provisions of section 1351 and any other provisions
applicable to housing assistance payments contracts under
this title, except that the Secretary may provide such
exceptions as the Secretary considers appropriate to
facilitate the provision of assistance under this subsection.
Subtitle C--Payment of Housing Assistance on Behalf of Assisted
Families
SEC. 1351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.
(a) In General.--Each public housing agency that receives
amounts under a contract under section 1302 may enter into
housing assistance payments contracts with owners of existing
dwelling units to make housing assistance payments to such
owners in accordance with this title.
(b) PHA Acting As Owner.--A public housing agency may enter
into a housing assistance payments contract to make housing
assistance payments under this title to itself (or any agency
or instrumentality thereof) as the owner of dwelling units
(other than public housing), and the agency shall be subject
to the same requirements that are applicable to other owners,
except that the determinations under sections 1328(a) and
1354(b) shall be made by a competent party not affiliated
with the agency, and the agency shall be responsible for any
expenses of such determinations.
(c) Provisions.--Each housing assistance payments contract
shall--
(1) have a term of not more than 12 months;
(2) require that the assisted dwelling unit may be rented
only pursuant to a lease that complies with the requirements
of section 1324;
(3) comply with the requirements of sections 1325, 1642,
and 1643 (relating to termination of tenancy);
(4) require the owner to maintain the dwelling unit in
accordance with the applicable standards under section
1328(a)(2); and
(5) provide that the screening and selection of eligible
families for assisted dwelling units shall be the function of
the owner.
SEC. 1352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.
(a) Units Having Gross Rent Exceeding Payment Standard.--In
the case of a dwelling unit bearing a gross rent that exceeds
the payment standard established under section 1353 for a
dwelling unit of the applicable size and located in the
market area in which such assisted dwelling unit is located,
the amount of the monthly assistance payment shall be the
amount by which such payment standard exceeds the amount of
the resident contribution determined in accordance with
section 1322(a)(1).
(b) Shopping Incentive for Units Having Gross Rent Not
Exceeding Payment Standard.--In the case of an assisted
family renting an eligible dwelling unit bearing a gross rent
that does not exceed the payment standard established under
section 1353 for a dwelling unit of the applicable size and
located in the market area in which such assisted dwelling
unit is located, the following requirements shall apply:
(1) Amount of monthly assistance payment.--The amount of
the monthly assistance payment for housing assistance under
this title on behalf of the assisted family shall be the
amount by which the gross rent for the dwelling unit exceeds
the amount of the resident contribution.
(2) Escrow of shopping incentive savings.--An amount equal
to 50 percent of the difference between payment standard and
the gross rent for the dwelling unit shall be placed in an
interest bearing escrow account on behalf of such family on a
monthly basis by the public housing agency. Amounts in the
escrow account shall be made available to the assisted family
on an annual basis.
(3) Deficit reduction.--The public housing agency making
housing assistance payments on behalf of such assisted family
in a fiscal year shall reserve from amounts made available to
the agency for assistance payments for such fiscal year an
amount equal to the amount described in paragraph (2). At the
end of each fiscal year, the Secretary shall recapture any
such amounts reserved by public housing agencies and such
amounts shall be covered into the General Fund of the
Treasury of the United States.
For purposes of this section, in the case of a family
receiving homeownership assistance under section 1329, the
term ``gross rent'' shall mean the homeownership costs to the
family as determined in accordance with guidelines of the
Secretary.
SEC. 1353. PAYMENT STANDARDS.
(a) Establishment.--Each public housing agency providing
housing assistance under this title shall establish payment
standards
[[Page H5799]]
under this section for various areas, and sizes and types of
dwelling units, for use in determining the amount of monthly
housing assistance payment to be provided on behalf of
assisted families.
(b) Use of Rental Indicators.--The payment standard for
each size and type of housing for each market area shall be
an amount that is not less than 80 percent, and not greater
than 120 percent, of the rental indicator established under
section 1323 for such size and type for such area.
(c) Review.--If the Secretary determines, at any time, that
a significant percentage of the assisted families who are
assisted by a public housing agency and are occupying
dwelling units of a particular size are paying more than 30
percent of their adjusted incomes for rent, the Secretary
shall review the payment standard established by the agency
for such size dwellings. If, pursuant to the review, the
Secretary determines that such payment standard is not
appropriate to serve the needs of the low-income population
of the jurisdiction served by the agency (taking into
consideration rental costs in the area), as identified in the
approved community improvement plan of the agency, the
Secretary may require the public housing agency to modify the
payment standard.
SEC. 1354. REASONABLE RENTS.
(a) Establishment.--The rent charged for a dwelling unit
for which rental assistance is provided under this title
shall be established pursuant to negotiation and agreement
between the assisted family and the owner of the dwelling
unit.
(b) Reasonableness.--
(1) Determination.--A public housing agency providing
rental assistance under this title for a dwelling unit shall,
before commencing assistance payments for a unit (with
respect to initial contract rents and any rent revisions),
determine whether the rent charged for the unit exceeds the
rents charged for comparable units in the applicable private
unassisted market.
(2) Unreasonable rents.--If the agency determines that the
rent charged for a dwelling unit exceeds such comparable
rents, the agency shall--
(A) inform the assisted family renting the unit that such
rent exceeds the rents for comparable unassisted units in the
market; and
(B) refuse to provide housing assistance payments for such
unit.
SEC. 1355. PROHIBITION OF ASSISTANCE FOR VACANT RENTAL UNITS.
If an assisted family vacates a dwelling unit for which
rental assistance is provided under a housing assistance
payments contract before the expiration of the term of the
lease for the unit, rental assistance pursuant to such
contract may not be provided for the unit after the month
during which the unit was vacated.
Subtitle D--General and Miscellaneous Provisions
SEC. 1371. DEFINITIONS.
For purposes of this title:
(1) Assisted dwelling unit.--The term ``assisted dwelling
unit'' means a dwelling unit in which an assisted family
resides and for which housing assistance payments are made
under this title.
(2) Assisted family.--The term ``assisted family'' means an
eligible family on whose behalf housing assistance payments
are made under this title or who has been selected and
approved for housing assistance.
(3) Choice-based.--The term ``choice-based'' means, with
respect to housing assistance, that the assistance is not
attached to a dwelling unit but can be used for any eligible
dwelling unit selected by the eligible family.
(4) Eligible dwelling unit.--The term ``eligible dwelling
unit'' means a dwelling unit that complies with the
requirements under section 1328 for consideration as an
eligible dwelling unit.
(5) Eligible family.--The term ``eligible family'' means a
family that meets the requirements under section 1321(a) for
assistance under this title.
(6) Homeownership assistance.--The term ``homeownership
assistance'' means housing assistance provided under section
1329 for the ownership of a dwelling unit.
(7) Housing assistance.--The term ``housing assistance''
means choice-based assistance provided under this title on
behalf of low-income families for the rental or ownership of
an eligible dwelling unit.
(8) Housing assistance payments contract.--The term
``housing assistance payments contract'' means a contract
under section 1351 between a public housing agency (or the
Secretary) and an owner to make housing assistance payments
under this title to the owner on behalf of an assisted
family.
(9) Public housing agency.--The terms ``public housing
agency'' and ``agency'' have the meaning given such terms in
section 1103, except that the terms include--
(A) a consortia of public housing agencies that the
Secretary determines has the capacity and capability to
administer a program for housing assistance under this title
in an efficient manner;
(B) any other entity that, upon the effective date of this
division, was administering any program for tenant-based
rental assistance under section 8 of the United States
Housing Act of 1937 (as in effect before the effective date
of the repeal under section 1601(b) of this Act), pursuant to
a contract with the Secretary or a public housing agency; and
(C) with respect to any area in which no public housing
agency has been organized or where the Secretary determines
that a public housing agency is unwilling or unable to
implement this title, or is not performing effectively--
(i) the Secretary or another entity that by contract agrees
to receive assistance amounts under this title and enter into
housing assistance payments contracts with owners and perform
the other functions of public housing agency under this
title; or
(ii) notwithstanding any provision of State or local law, a
public housing agency for another area that contracts with
the Secretary to administer a program for housing assistance
under this title, without regard to any otherwise applicable
limitations on its area of operation.
(10) Owner.--The term ``owner'' means the person or entity
having the legal right to lease or sublease dwelling units.
Such term includes any principals, general partners, primary
shareholders, and other similar participants in any entity
owning a multifamily housing project, as well as the entity
itself.
(11) Rent.--The terms ``rent'' and ``rental'' include, with
respect to members of a cooperative, the charges under the
occupancy agreements between such members and the
cooperative.
(12) Rental assistance.--The term ``rental assistance''
means housing assistance provided under this title for the
rental of a dwelling unit.
SEC. 1372. RENTAL ASSISTANCE FRAUD RECOVERIES.
(a) Authority To Retain Recovered Amounts.--The Secretary
shall permit public housing agencies administering housing
assistance under this title to retain, out of amounts
obtained by the authorities from tenants that are due as a
result of fraud and abuse, an amount (determined in
accordance with regulations issued by the Secretary) equal to
the greater of--
(1) 50 percent of the amount actually collected; or
(2) the actual, reasonable, and necessary expenses related
to the collection, including costs of investigation, legal
fees, and collection agency fees.
(b) Use.--Amounts retained by an agency shall be made
available for use in support of the affected program or
project, in accordance with regulations issued by the
Secretary. If the Secretary is the principal party initiating
or sustaining an action to recover amounts from families or
owners, the provisions of this section shall not apply.
(c) Recovery.--Amounts may be recovered under this
section--
(1) by an agency through a lawsuit (including settlement of
the lawsuit) brought by the agency or through court-ordered
restitution pursuant to a criminal proceeding resulting from
an agency's investigation where the agency seeks prosecution
of a family or where an agency seeks prosecution of an owner;
(2) through administrative repayment agreements with a
family or owner entered into as a result of an administrative
grievance procedure conducted by an impartial decisionmaker
in accordance with section 1110; or
(3) through an agreement between the parties.
SEC. 1373. STUDY REGARDING GEOGRAPHIC CONCENTRATION OF
ASSISTED FAMILIES.
(a) In General.--The Secretary shall conduct a study of the
geographic areas in the State of Illinois served by the
Housing Authority of Cook County and the Chicago Housing
Authority and submit to the Congress a report and a specific
proposal, which addresses and resolves the issues of--
(1) the adverse impact on local communities due to
geographic concentration of assisted households under the
tenant-based housing programs under section 8 of the United
States Housing Act of 1937 (as in effect upon the enactment
of this Act) and under this title; and
(2) facilitating the deconcentration of such assisted
households by providing broader housing choices to such
households.
The study shall be completed, and the report shall be
submitted, not later than 90 days after the date of the
enactment of this Act.
(b) Concentration.--For purposes of this section, the term
``concentration'' means, with respect to any area within a
census tract, that--
(1) 15 percent or more of the households residing within
such area have incomes which do not exceed the poverty level;
or
(2) 15 percent or more of the total affordable housing
stock located within such area is assisted housing.
(c) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 1374. STUDY REGARDING RENTAL ASSISTANCE.
The Secretary shall conduct a nationwide study of the
choice-based housing assistance program under this title and
the tenant-based rental assistance program under section 8 of
the United States Housing Act of 1937 (as in effect pursuant
to sections 1601(c) and 1602(b)). The study shall, for
various localities--
(1) determine who are the providers of the housing in which
families assisted under such programs reside;
(2) describe and analyze the physical and demographic
characteristics of the housing in which such assistance is
used, including, for housing in which at least one such
assisted family resides, the total number of
[[Page H5800]]
units in the housing and the number of units in the housing
for which such assistance is provided;
(3) determine the total number of units for which such
assistance is provided;
(4) describe the durations that families remain on waiting
lists before being provided such housing assistance; and
(5) assess the extent and quality of participation of
housing owners in such assistance programs in relation to the
local housing market, including comparing--
(A) the quality of the housing assisted to the housing
generally available in the same market; and
(B) the extent to which housing is available to be occupied
using such assistance to the extent to which housing is
generally available in the same market.
The Secretary shall submit a report describing the results of
the study to the Congress not later than the expiration of
the 2-year period beginning on the date of the enactment of
this Act.
TITLE XIV--HOME RULE FLEXIBLE GRANT OPTION
SEC. 1401. PURPOSE.
The purpose of this title is to give local governments and
municipalities the flexibility to design creative approaches
for providing and administering Federal housing assistance
based on the particular needs of the communities that--
(1) give incentives to low-income families with children
where the head of household is working, seeking work, or
preparing for work by participating in job training,
educational programs, or programs that assist people to
obtain employment and become economically self-sufficient;
(2) reduce cost and achieve greater cost-effectiveness in
Federal housing assistance expenditures;
(3) increase housing choices for low-income families; and
(4) reduce excessive geographic concentration of assisted
families.
SEC. 1402. FLEXIBLE GRANT PROGRAM.
(a) Authority and Use.--The Secretary shall carry out a
program under which a jurisdiction may, upon the application
of the jurisdiction and the review and approval of the
Secretary, receive, combine, and enter into performance-based
contracts for the use of amounts of covered housing
assistance in a period consisting of not less than 1 nor more
than 5 fiscal years in the manner determined appropriate by
the participating jurisdiction--
(1) to provide housing assistance and services for low-
income families in a manner that facilitates the transition
of such families to work;
(2) to reduce homelessness;
(3) to increase homeownership among low-income families;
and
(4) for other housing purposes for low-income families
determined by the participating jurisdiction.
(b) Inapplicability of Categorical Program Requirements.--
(1) In general.--Except as provided in paragraph (2) and
section 1405, the provisions of this division regarding use
of amounts made available under each of the programs included
as covered housing assistance and the program requirements
applicable to each such program shall not apply to amounts
received by a jurisdiction pursuant to this title.
(2) Applicability of certain laws.--This title may not be
construed to exempt assistance under this division from, or
make inapplicable any provision of this division or of any
other law that requires that assistance under this division
be provided in compliance with--
(A) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.);
(B) the Fair Housing Act (42 U.S.C. 3601 et seq.);
(C) section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.);
(D) title IX of the Education Amendments of 1972 (86 Stat.
373 et seq.);
(E) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.);
(F) the Americans with Disabilities Act of 1990; or
(G) the National Environmental Policy Act of 1969 and other
provisions of law that further protection of the environment
(as specified in regulations that shall be issued by the
Secretary).
(c) Effect on Program Allocations for Covered Housing
Assistance.--The amount of assistance received pursuant to
this title by a participating jurisdiction shall not be
decreased, because of participation in the program under this
title, from the sum of the amounts that otherwise would be
made available for or within the participating jurisdiction
under the programs included as covered housing assistance.
SEC. 1403. COVERED HOUSING ASSISTANCE.
For purposes of this title, the term ``covered housing
assistance'' means--
(1) operating assistance provided under section 9 of the
United States Housing Act of 1937 (as in effect before the
effective date of the repeal under section 1601(b) of this
Act);
(2) modernization assistance provided under section 14 of
such Act;
(3) assistance provided under section 8 of such Act for the
certificate and voucher programs;
(4) assistance for public housing provided under title XII
of this Act; and
(5) choice-based rental assistance provided under title
XIII of this Act.
Such term does not include any amounts obligated for
assistance under existing contracts for project-based
assistance under section 8 of the United States Housing Act
of 1937 or section 1601(f) of this Act.
SEC. 1404. PROGRAM REQUIREMENTS.
(a) Eligible Families.--Each family on behalf of whom
assistance is provided for rental or homeownership of a
dwelling unit using amounts made available pursuant to this
title shall be a low-income family. Each dwelling unit
assisted using amounts made available pursuant to this title
shall be available for occupancy only by families that are
low-income families at the time of their initial occupancy of
the unit.
(b) Compliance With Assistance Plan.--A participating
jurisdiction shall provide assistance using amounts received
pursuant to this title in the manner set forth in the plan of
the jurisdiction approved by the Secretary under section
1406(a)(2).
(c) Rent Policy.--A participating jurisdiction shall ensure
that the rental contributions charged to families assisted
with amounts received pursuant to this title--
(1) do not exceed the amount that would be chargeable under
title XII to such families were such families residing in
public housing assisted under such title; or
(2) are established, pursuant to approval by the Secretary
of a proposed rent structure included in the application
under section 1406, at levels that are reasonable and
designed to eliminate any disincentives for members of the
family to obtain employment and attain economic self-
sufficiency.
(d) Housing Quality Standards.--
(1) Compliance.--A participating jurisdiction shall ensure
that housing assisted with amounts received pursuant to this
title is maintained in a condition that complies--
(A) in the case of housing located in a jurisdiction which
has in effect laws, regulations, standards, or codes
regarding habitability of residential dwellings, with such
applicable laws, regulations, standards, or codes; or
(B) in the case of housing located in a jurisdiction which
does not have in effect laws, regulations, standards, or
codes described in paragraph (1), with the housing quality
standards established under paragraph (2).
(2) Federal housing quality standards.--The Secretary shall
establish housing quality standards under this paragraph that
ensure that dwelling units assisted under this title are
safe, clean, and healthy. Such standards shall include
requirements relating to habitability, including maintenance,
health and sanitation factors, condition, and construction of
dwellings, and shall, to the greatest extent practicable, be
consistent with the standards established under sections
1232(b) and 1328(c). The Secretary shall differentiate
between major and minor violations of such standards.
(e) Number of Families Assisted.--A participating
jurisdiction shall ensure that, in providing assistance with
amounts received pursuant to this title in each fiscal year,
not less than substantially the same total number of eligible
low-income families are assisted as would have been assisted
had the amounts of covered housing assistance not been
combined for use under this title.
(f) Consistency With Welfare Program.--A participating
jurisdiction shall ensure that assistance provided with
amounts received pursuant to this title is provided in a
manner that is consistent with the welfare, public
assistance, or other economic self-sufficiency programs
operating in the jurisdiction by facilitating the transition
of assisted families to work, which may include requiring
compliance with the requirements under such welfare, public
assistance, or self-sufficiency programs as a condition of
receiving housing assistance with amounts provided under this
title.
(g) Treatment of Currently Assisted Families.--
(1) Continuation of assistance.--A participating
jurisdiction shall ensure that each family that was receiving
housing assistance or residing in an assisted dwelling unit
pursuant to any of the programs included as covered housing
assistance immediately before the jurisdiction initially
provides assistance pursuant to this title shall be offered
assistance or an assisted dwelling unit under the program of
the jurisdiction under this title.
(2) Phase-in of rent contribution increases.--For any
family that was receiving housing assistance pursuant to any
of the programs included as covered housing assistance
immediately before the jurisdiction initially provides
assistance pursuant to this title, if the monthly
contribution for rental of a dwelling unit assisted under
this title to be paid by the family upon initial
applicability of this title is greater than the amount paid
by the family immediately before such applicability, any such
resulting increase in rent contribution shall be--
(A) phased in equally over a period of not less than 3
years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if such
increase is more than 10 percent but less than 30 percent of
such contribution before initial applicability.
(h) Amount of Assistance.--In providing housing assistance
using amounts received pursuant to this title, the amount of
assistance provided by a participating jurisdiction on behalf
of each assisted low-income family shall be sufficient so
that if the family used such assistance to rent a dwelling
unit having a rent equal to the 40th percentile of
[[Page H5801]]
rents for standard quality rental units of the same size and
type in the same market area, the contribution toward rental
paid by the family would be affordable (as such term is
defined by the jurisdiction) to the family.
(i) Portability.--A participating jurisdiction shall ensure
that financial assistance for housing provided with amounts
received pursuant to this title may be used by a family
moving from an assisted dwelling unit located within the
jurisdiction to obtain a dwelling unit located outside of the
jurisdiction.
(j) Preferences.--In providing housing assistance using
amounts received pursuant to this title, a participating
jurisdiction may establish a system for making housing
assistance available that provides preference for assistance
to families having certain characteristics. A system of
preferences established pursuant to this subsection shall be
based on local housing needs and priorities, as determined by
the jurisdiction using generally accepted data sources.
(k) Community Work Requirement.--
(1) Applicability of requirements for pha's.--Except as
provided in paragraph (2), participating jurisdictions,
families assisted with amounts received pursuant to this
title, and dwelling units assisted with amounts received
pursuant to this title, shall be subject to the provisions of
section 1105 to the same extent that such provisions apply
with respect to public housing agencies, families residing in
public housing dwelling units and families assisted under
title XIII, and public housing dwelling units and dwelling
units assisted under title XIII.
(2) Local community service alternative.--Paragraph (1)
shall not apply to a participating jurisdiction that,
pursuant to approval by the Secretary of a proposal included
in the application under section 1406, is carrying out a
local program that is designed to foster community service by
families assisted with amounts received pursuant to this
title.
(l) Income Targeting.--In providing housing assistance
using amounts received pursuant to this title in any fiscal
year, a participating jurisdiction shall ensure that the
number of families having incomes that do not exceed 30
percent of the area median income that are initially assisted
under this title during such fiscal year is not less than
substantially the same number of families having such incomes
that would be initially assisted in such jurisdiction during
such fiscal year under titles XII and XIII pursuant to
sections 1222(c) and 1321(b)).
SEC. 1405. APPLICABILITY OF CERTAIN PROVISIONS.
(a) Public Housing Demolition and Disposition
Requirements.--section 1261 shall continue to apply to public
housing notwithstanding any use of the housing under this
title.
(b) Labor Standards.--section 1112 shall apply to housing
assisted with amounts provided pursuant to this title, other
than housing assisted solely due to occupancy by families
receiving tenant-based assistance.
SEC. 1406. APPLICATION.
(a) In General.--The Secretary shall provide for
jurisdictions to submit applications to receive and use
covered housing assistance amounts as authorized in this
title for periods of not less than 1 and not more than 5
fiscal years. An application--
(1) shall be submitted only after the jurisdiction provides
for citizen participation through a public hearing and, if
appropriate, other means;
(2) shall include a plan developed by the jurisdiction for
the provision of housing assistance with amounts received
pursuant to this title that takes into consideration comments
from the public hearing and any other public comments on the
proposed program, and comments from current and prospective
residents who would be affected, and that includes criteria
for meeting each of the requirements under section 1404 and
this title;
(3) shall describe how the plan for use of amounts will
assist in meeting the goals set forth in section 1401;
(4) shall propose standards for measuring performance in
using assistance provided pursuant to this title based on the
performance standards under subsection (b)(2);
(5) shall propose the length of the period for which the
jurisdiction is applying for assistance under this title;
(6) may include a request assistance for training and
technical assistance to assist with design of the program and
to participate in a detailed evaluation;
(7) shall--
(A) in the case of the application of any jurisdiction
within whose boundaries are areas subject to any other unit
of general local government, include the signed consent of
the appropriate executive official of such unit to the
application; and
(B) in the case of the application of a consortia of units
of general local government (as provided under section
1409(1)(B)), include the signed consent of the appropriate
executive officials of each unit included in the consortia;
(8) shall include information sufficient, in the
determination of the Secretary--
(A) to demonstrate that the jurisdiction has or will have
management and administrative capacity sufficient to carry
out the plan under paragraph (2);
(B) to demonstrate that carrying out the plan will not
result in excessive duplication of administrative efforts and
costs, particularly with respect to activities performed by
public housing agencies operating within the boundaries of
the jurisdiction;
(C) to describe the function and activities to be carried
out by such public housing agencies affected by the plan; and
(D) to demonstrate that the amounts received by the
jurisdiction will be maintained separate from other funds
available to the jurisdiction and will be used only to carry
out the plan; and
(9) shall include information describing how the
jurisdiction will make decisions regarding asset management
of housing for low-income families under programs for covered
housing assistance or assisted with grant amounts under this
title.
A plan required under paragraph (2) to be included in the
application may be contained in a memorandum of agreement or
other document executed by a jurisdiction and public housing
agency, if such document is submitted together with the
application.
(b) Review, Approval, and Performance Standards.--
(1) Review.--The Secretary shall review applications for
assistance pursuant to this title and shall approve or
disapprove such applications within 60 days after their
submission. The Secretary shall provide affected public
housing agencies an opportunity to review an application
submitted under this subsection and to provide written
comments on the application, which shall be a period of not
less than 30 days ending before the Secretary approves or
disapproves the application. If the Secretary determines that
the application complies with the requirements of this title,
the Secretary shall offer to enter into an agreement with
jurisdiction providing for assistance pursuant to this title
and incorporating a requirement that the jurisdiction achieve
a particular level of performance in each of the areas for
which performance standards are established under paragraph
(2). If the Secretary determines that an application does not
comply with the requirements of this title, the Secretary
shall notify the jurisdiction submitting the application of
the reasons for such disapproval and actions that may be
taken to make the application approvable. Upon approving or
disapproving an application under this paragraph, the
Secretary shall make such determination publicly available in
writing together with a written statement of the reasons for
such determination.
(2) Performance standards.--The Secretary shall establish
standards for measuring performance of jurisdictions in the
following areas:
(A) Success in moving dependent low-income families to
economic self-sufficiency.
(B) Success in reducing the numbers of long-term homeless
families.
(C) Decrease in the per-family cost of providing
assistance.
(D) Reduction of excessive geographic concentration of
assisted families.
(E) Any other performance goals that the Secretary may
prescribe.
(3) Approval.--If the Secretary and a jurisdiction that the
Secretary determines has submitted an application meeting the
requirements of this title enter into an agreement referred
to in paragraph (1), the Secretary shall approve the
application and provide covered housing assistance for the
jurisdiction in the manner authorized under this title. The
Secretary may not approve any application for assistance
pursuant to this title unless the Secretary and jurisdiction
enter into an agreement referred to in paragraph (1). The
Secretary shall establish requirements for the approval of
applications under this section submitted by public housing
agencies designated under section 1533(a) as troubled, which
may include additional or different criteria determined by
the Secretary to be more appropriate for such agencies.
(c) Status of PHA's.--Nothing in this section or title may
be construed to require any change in the legal status of any
public housing agency or in any legal relationship between a
jurisdiction and a public housing agency as a condition of
participation in the program under this title.
SEC. 1407. TRAINING.
The Secretary, in consultation with representatives of
public and assisted housing interests, shall provide training
and technical assistance relating to providing assistance
under this title and conduct detailed evaluations of up to 30
jurisdictions for the purpose of identifying replicable
program models that are successful at carrying out the
purposes of this title.
SEC. 1408. ACCOUNTABILITY.
(a) Performance Goals.--The Secretary shall monitor the
performance of participating jurisdictions in providing
assistance pursuant to this title based on the performance
standards contained in the agreements entered into pursuant
to section 1406(b)(1).
(b) Keeping Records.--Each participating jurisdiction shall
keep such records as the Secretary may prescribe as
reasonably necessary to disclose the amounts and the
disposition of amounts provided pursuant to this title, to
ensure compliance with the requirements of this title and to
measure performance against the performance goals under
subsection (a).
(c) Reports.--Each participating jurisdiction agency shall
submit to the Secretary a report, or series of reports, in a
form and at a time specified by the Secretary. The reports
shall--
(1) document the use of funds made available under this
title;
(2) provide such information as the Secretary may request
to assist the Secretary in assessing the program under this
title; and
[[Page H5802]]
(3) describe and analyze the effect of assisted activities
in addressing the purposes of this title.
(d) Access to Documents by Secretary.--The Secretary shall
have access for the purpose of audit and examination to any
books, documents, papers, and records that are pertinent to
assistance in connection with, and the requirements of, this
title.
(e) Access to Documents by Comptroller General.--The
Comptroller General of the United States, or any of the duly
authorized representatives of the Comptroller General, shall
have access for the purpose of audit and examination to any
books, documents, papers, and records that are pertinent to
assistance in connection with, and the requirements of, this
title.
SEC. 1409. DEFINITIONS.
For purposes of this title, the following definitions shall
apply:
(1) Jurisdiction.--The term ``jurisdiction'' means--
(A) a unit of general local government (as such term is
defined in section 104 of the Cranston-Gonzalez National
Affordable Housing Act) that has boundaries, for purposes of
carrying out this title, that--
(i) wholly contain the area within which a public housing
agency is authorized to operate; and
(ii) do not contain any areas contained within the
boundaries of any other participating jurisdiction; and
(B) a consortia of such units of general local government,
organized for purposes of this title.
(2) Participating jurisdiction.--The term ``participating
jurisdiction'' means, with respect to a period for which such
approval is made, a jurisdiction that has been approved under
section 1406(b)(3) to receive assistance pursuant to this
title for such fiscal year.
TITLE XV--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES
Subtitle A--Study of Alternative Methods for Evaluating Public Housing
Agencies
SEC. 1501. IN GENERAL.
The Secretary of Housing and Urban Development shall
provide under section 1505 for a study to be conducted to
determine the effectiveness of various alternative methods of
evaluating the performance of public housing agencies and
other providers of federally assisted housing.
SEC. 1502. PURPOSES.
The purposes of the study under this subtitle shall be--
(1) to identify and examine various methods of evaluating
and improving the performance of public housing agencies in
administering public housing and tenant-based rental
assistance programs and of other providers of federally
assisted housing, which are alternatives to oversight by the
Department of Housing and Urban Development; and
(2) to identify specific monitoring and oversight
activities currently conducted by the Department of Housing
and Urban Development that are insufficient or ineffective in
accurately and efficiently assessing the performance of
public housing agencies and other providers of federally
assisted housing, and to evaluate whether such activities
should be eliminated, modified, or transferred to other
entities (including government and private entities) to
increase accuracy and effectiveness and improve monitoring.
SEC. 1503. EVALUATION OF VARIOUS PERFORMANCE EVALUATION
SYSTEMS.
To carry out the purpose under section 1502(1), the study
under this subtitle shall identify, and analyze and assess
the costs and benefits of, the following methods of
regulating and evaluating the performance of public housing
agencies and other providers of federally assisted housing:
(1) Current system.--The system pursuant to the United
States Housing Act of 1937 (as in effect upon the enactment
of this Act), including the methods and requirements under
such system for reporting, auditing, reviewing, sanctioning,
and monitoring of such agencies and housing providers and the
public housing management assessment program pursuant to
subtitle C of this title (and section 6(j) of the United
States Housing Act of 1937 (as in effect upon the enactment
of this Act)).
(2) Accreditation models.--Various models that are based
upon accreditation of such agencies and housing providers,
subject to the following requirements:
(A) The study shall identify and analyze various models
used in other industries and professions for accreditation
and determine the extent of their applicability to the
programs for public housing and federally assisted housing.
(B) If any accreditation models are determined to be
applicable to the public and federally assisted housing
programs, the study shall identify appropriate goals,
objectives, and procedures for an accreditation program for
such agencies housing providers.
(C) The study shall evaluate the effectiveness of
establishing an independent accreditation and evaluation
entity to assist, supplement, or replace the role of the
Department of Housing and Urban Development in assessing and
monitoring the performance of such agencies and housing
providers.
(D) The study shall identify the necessary and appropriate
roles and responsibilities of various entities that would be
involved in an accreditation program, including the
Department of Housing and Urban Development, the Inspector
General of the Department, an accreditation entity,
independent auditors and examiners, local entities, and
public housing agencies.
(E) The study shall determine the costs involved in
developing and maintaining such an independent accreditation
program.
(F) The study shall analyze the need for technical
assistance to assist public housing agencies in improving
performance and identify the most effective methods to
provide such assistance.
(3) Performance based models.--Various performance-based
models, including systems that establish performance goals or
targets, assess the compliance with such goals or targets,
and provide for incentives or sanctions based on performance
relative to such goals or targets.
(4) Local review and monitoring models.--Various models
providing for local, resident, and community review and
monitoring of such agencies and housing providers, including
systems for review and monitoring by local and State
governmental bodies and agencies.
(5) Private models.--Various models using private
contractors for review and monitoring of such agencies and
housing providers.
(6) Other models.--Various models of any other systems that
may be more effective and efficient in regulating and
evaluating such agencies and housing providers.
SEC. 1504. CONSULTATION.
The entity that, pursuant to section 1505, carries out the
study under this subtitle shall, in carrying out the study,
consult with individuals and organization experienced in
managing public housing, private real estate managers,
representatives from State and local governments, residents
of public housing, families and individuals receiving choice-
or tenant-based assistance, the Secretary of Housing and
Urban Development, the Inspector General of the Department of
Housing and Urban Development, and the Comptroller General of
the United States.
SEC. 1505. CONTRACT TO CONDUCT STUDY.
(a) In General.--Subject to subsection (b), the Secretary
shall enter into a contract with a public or nonprofit
private entity to conduct the study under this subtitle,
using amounts made available pursuant to section 1507.
(b) National Academy of Public Administration.--The
Secretary shall request the National Academy of Public
Administration to enter into the contract under subsection
(a) to conduct the study under this subtitle. If such Academy
declines to conduct the study, the Secretary shall carry out
such subsection through other public or nonprofit private
entities.
SEC. 1506. REPORT.
(a) Interim Report.--The Secretary shall ensure that not
later than the expiration of the 6-month period beginning on
the date of the enactment of this Act, the entity conducting
the study under this subtitle submits to the Congress an
interim report describing the actions taken to carry out the
study, the actions to be taken to complete the study, and any
findings and recommendations available at the time.
(b) Final Report.--The Secretary shall ensure that--
(1) not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the study
required under this subtitle is completed and a report
describing the findings and recommendations as a result of
the study is submitted to the Congress; and
(2) before submitting the report under this subsection to
the Congress, the report is submitted to the Secretary and
national organizations for public housing agencies at such
time to provide the Secretary and such agencies an
opportunity to review the report and provide written comments
on the report, which shall be included together with the
report upon submission to the Congress under paragraph (1).
SEC. 1507. FUNDING.
Of any amounts made available under title V of the Housing
and Urban Development Act of 1970 for policy development and
research for fiscal year 1998, $500,000 shall be available to
carry out this subtitle.
SEC. 1508. EFFECTIVE DATE.
This subtitle shall take effect on the date of the
enactment of this Act.
Subtitle B--Housing Evaluation and Accreditation Board
SEC. 1521. ESTABLISHMENT.
(a) In General.--There is established an independent agency
in the executive branch of the Government to be known as the
Housing Foundation and Accreditation Board (in this title
referred to as the ``Board'').
(b) Requirement for Congressional Review of Study.--
Notwithstanding any other provision of this division,
sections 1523, 1524, and 1525 shall not take effect and the
Board shall not have any authority to take any action under
such sections (or otherwise) unless there is enacted a law
specifically providing for the repeal of this subsection.
This subsection may not be construed to prevent the
appointment of the Board under section 1522.
(c) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 1522. MEMBERSHIP.
(a) In General.--The Board shall be composed of 12 members
appointed by the President not later than 180 days after the
date of the final report regarding the study required under
subtitle A is submitted to the Congress pursuant to section
1506(b), as follows:
[[Page H5803]]
(1) 4 members shall be appointed from among 10 individuals
recommended by the Secretary of Housing and Urban
Development.
(2) 4 members shall be appointed from among 10 individuals
recommended by the Chairman and Ranking Minority Member of
the Committee on Banking, Housing, and Urban Affairs of the
Senate.
(3) 4 members appointed from among 10 individuals
recommended by the Chairman and Ranking Minority Member of
the Committee on Banking and Financial Services of the House
of Representatives.
(b) Qualifications.--
(1) Required representation.--The Board shall at all times
have the following members:
(A) 2 members who are residents of public housing or
dwelling units assisted under title XIII of this Act or the
provisions of section 8 of the United States Housing Act of
1937 (as in effect before the effective date of the repeal
under section 1601(b) of this Act).
(B) At least 2, but not more than 4 members who are
executive directors of public housing agencies.
(C) 1 member who is a member of the Institute of Real
Estate Managers.
(D) 1 member who is the owner of a multifamily housing
project assisted under a program administered by the
Secretary of Housing and Urban Development.
(2) Required experience.--The Board shall at all times have
as members individuals with the following experience:
(A) At least 1 individual who has extensive experience in
the residential real estate finance business.
(B) At least 1 individual who has extensive experience in
operating a nonprofit organization that provides affordable
housing.
(C) At least 1 individual who has extensive experience in
construction of multifamily housing.
(D) At least 1 individual who has extensive experience in
the management of a community development corporation.
(E) At least 1 individual who has extensive experience in
auditing participants in government programs.
A single member of the board with the appropriate experience
may satisfy the requirements of more than 1 subparagraph of
this paragraph. A single member of the board with the
appropriate qualifications and experience may satisfy the
requirements of a subparagraph of paragraph (1) and a
subparagraph of this paragraph.
(c) Political Affiliation.--Not more than 6 members of the
Board may be of the same political party.
(d) Terms.--
(1) In general.--Each member of the Board shall be
appointed for a term of 4 years, except as provided in
paragraphs (2) and (3).
(2) Terms of initial appointees.--As designated by the
President at the time of appointment, of the members first
appointed--
(A) 3 shall be appointed for terms of 1 year;
(B) 3 shall be appointed for terms of 2 years;
(C) 3 shall be appointed for terms of 3 years; and
(D) 3 shall be appointed for terms of 4 years.
(3) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only
for the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy in the Board shall be filled in the manner
in which the original appointment was made.
(e) Chairperson.--The Board shall elect a chairperson from
among members of the Board.
(f) Quorum.--A majority of the members of the Board shall
constitute a quorum for the transaction of business.
(g) Voting.--Each member of the Board shall be entitled to
1 vote, which shall be equal to the vote of every other
member of the Board.
(h) Prohibition on Additional Pay.--Members of the Board
shall serve without compensation, but shall be reimbursed for
travel, subsistence, and other necessary expenses incurred in
the performance of their duties as members of the Board.
SEC. 1523. FUNCTIONS.
The purpose of this subtitle is to establish the Board as a
nonpolitical entity to carry out, not later than the
expiration of the 12-month period beginning upon the
appointment under section 1522 of all of the initial members
of the Board (or such other date as may be provided by law),
the following functions:
(1) Establishment of performance benchmarks.--The Board
shall establish standards and guidelines for use by the Board
in measuring the performance and efficiency of public housing
agencies and other owners and providers of federally assisted
housing in carrying out operational and financial functions.
The standards and guidelines shall be designed to replace the
public housing management assessment program under section
6(j) of the United States Housing Act of 1937 (as in effect
before the enactment of this Act) and improve the evaluation
of the performance of housing providers relative to such
program. In establishing such standards and guidelines, the
Board shall consult with the Secretary, the Inspector General
of the Department of Housing and Urban Development, and such
other persons and entities as the Board considers
appropriate.
(2) Establishment of accreditation procedure and
accreditation.--The Board shall--
(A) establish a procedure for the Board to accredit public
housing agencies to receive block grants under title XII for
the operation, maintenance, and production of public housing
and amounts for housing assistance under title XIII, based on
the performance of agencies, as measured by the performance
benchmarks established under paragraph (1) and any audits and
reviews of agencies; and
(B) commence the review and accreditation of public housing
agencies under the procedures established under subparagraph
(A).
In carrying out the functions under this section, the Board
shall take into consideration the findings and
recommendations contained in the report issued under section
1506(b).
SEC. 1524. POWERS.
(a) Hearings.--The Board may, for the purpose of carrying
out this subtitle, hold such hearings and sit and act at such
times and places as the Board determines appropriate.
(b) Rules and Regulations.--The Board may adopt such rules
and regulations as may be necessary to establish its
procedures and to govern the manner of its operations,
organization, and personnel.
(c) Assistance From Federal Agencies.--
(1) Information.--The Board may secure directly from any
department or agency of the Federal Government such
information as the Board may require for carrying out its
functions, including public housing agency plans submitted to
the Secretary by public housing agencies under title XI. Upon
request of the Board, any such department or agency shall
furnish such information.
(2) General services administration.--The Administrator of
General Services shall provide to the Board, on a
reimbursable basis, such administrative support services as
the Board may request.
(3) Department of housing and urban development.--Upon the
request of the chairperson of the Board, the Secretary of
Housing and Urban Development shall, to the extent possible
and subject to the discretion of the Secretary, detail any of
the personnel of the Department of Housing and Urban
Development, on a nonreimbursable basis, to assist the Board
in carrying out its functions under this subtitle.
(4) HUD inspector general.--The Inspector General of the
Department of Housing and Urban Development shall serve the
Board as a principal adviser with respect to all aspects of
audits of public housing agencies. The Inspector General may
advise the Board with respect to other activities and
functions of the Board.
(d) Mails.--The Board may use the United States mails in
the same manner and under the same conditions as other
Federal agencies.
(e) Contracting.--The Board may, to such extent and in such
amounts as are provided in appropriation Acts, enter into
contracts with private firms, institutions, and individuals
for the purpose of conducting evaluations of public housing
agencies, audits of public housing agencies, and research and
surveys necessary to enable the Board to discharge its
functions under this subtitle.
(f) Staff.--
(1) Executive director.--The Board shall appoint an
executive director of the Board, who shall be compensated at
a rate fixed by the Board, but which shall not exceed the
rate established for level V of the Executive Schedule under
title 5, United States Code.
(2) Other personnel.--In addition to the executive
director, the Board may appoint and fix the compensation of
such personnel as the Board considers necessary, in
accordance with the provisions of title 5, United States
Code, governing appointments to the competitive service, and
the provisions of chapter 51 and subchapter III of chapter 53
of such title, relating to classification and General
Schedule pay rates.
(g) Access to Documents.--The Board shall have access for
the purposes of carrying out its functions under this
subtitle to any books, documents, papers, and records of a
public housing agency to which the Secretary has access under
this division.
SEC. 1525. FEES.
(a) Accreditation Fees.--The Board may establish and charge
reasonable fees for the accreditation of public housing
agencies as the Board considers necessary to cover the costs
of the operations of the Board relating to its functions
under section 1523.
(b) Fund.--Any fees collected under this section shall be
deposited in an operations fund for the Board, which is
hereby established in the Treasury of the United States.
Amounts in such fund shall be available, to the extent
provided in appropriation Acts, for the expenses of the Board
in carrying out its functions under this subtitle.
SEC. 1526. GAO AUDIT.
The activities and transactions of the Board shall be
subject to audit by the Comptroller General of the United
States under such rules and regulations as may be prescribed
by the Comptroller General. The representatives of the
General Accounting Office shall have access for the purpose
of audit and examination to any books, documents, papers, and
records of the Board that are necessary to facilitate an
audit.
Subtitle C--Interim Applicability of Public Housing Management
Assessment Program
SEC. 1531. INTERIM APPLICABILITY.
This subtitle shall be effective only during the period
that begins on the effective date
[[Page H5804]]
of this division and ends upon the date of the effectiveness
of the standards and procedures required under section 1523.
SEC. 1532. MANAGEMENT ASSESSMENT INDICATORS.
(a) Establishment.--The Secretary shall develop and publish
in the Federal Register indicators to assess the management
performance of public housing agencies and other entities
managing public housing (including resident management
corporations, independent managers pursuant to section 1236,
and management entities pursuant to subtitle D). The
indicators shall be established by rule under section 553 of
title 5, United States Code. Such indicators shall enable the
Secretary to evaluate the performance of public housing
agencies and such other managers of public housing in all
major areas of management operations.
(b) Content.--The management assessment indicators shall
include the following indicators:
(1) The number and percentage of vacancies within an
agency's or manager's inventory, including the progress that
an agency or manager has made within the previous 3 years to
reduce such vacancies.
(2) The amount and percentage of funds obligated to the
public housing agency or manager from the capital fund or
under section 14 of the United States Housing Act of 1937 (as
in effect before the effective date of the repeal under
section 1601(b) of this Act), which remain unexpended after 3
years.
(3) The percentage of rents uncollected.
(4) The energy consumption (with appropriate adjustments to
reflect different regions and unit sizes).
(5) The average period of time that an agency or manager
requires to repair and turn-around vacant dwelling units.
(6) The proportion of maintenance work orders outstanding,
including any progress that an agency or manager has made
during the preceding 3 years to reduce the period of time
required to complete maintenance work orders.
(7) The percentage of dwelling units that an agency or
manager fails to inspect to ascertain maintenance or
modernization needs within such period of time as the
Secretary deems appropriate (with appropriate adjustments, if
any, for large and small agencies or managers).
(8) The extent to which the rent policies of any public
housing agency establishing rental amounts in accordance with
section 1225(b) comply with the requirement under section
1225(c).
(9) Whether the agency is providing acceptable basic
housing conditions, as determined by the Secretary.
(10) Whether the agency has conducted and regularly updated
an assessment to identify any pest control problems in the
public housing owned or operated by the agency and the extent
to which the agency is effective in carrying out a strategy
to eradicate or control such problems, which assessment and
strategy shall be included in the local housing management
plan for the agency under section 1106.
(11) Any other factors as the Secretary deems appropriate.
(c) Considerations in Evaluation.--The Secretary shall--
(1) administer the system of evaluating public housing
agencies and managers flexibly to ensure that agencies and
managers are not penalized as result of circumstances beyond
their control;
(2) reflect in the weights assigned to the various
management assessment indicators the differences in the
difficulty of managing individual developments that result
from their physical condition and their neighborhood
environment; and
(3) determine a public housing agency's or manager's status
as ``troubled with respect to modernization'' under section
1533(b) based upon factors solely related to its ability to
carry out modernization activities.
SEC. 1533. DESIGNATION OF PHA'S.
(a) Troubled PHA's.--The Secretary shall, under the
rulemaking procedures under section 553 of title 5, United
States Code, establish procedures for designating troubled
public housing agencies and managers, which procedures shall
include identification of serious and substantial failure to
perform as measured by (1) the performance indicators
specified under section 1532 and such other factors as the
Secretary may deem to be appropriate; or (2) such other
evaluation system as is determined by the Secretary to assess
the condition of the public housing agency or other entity
managing public housing, which system may be in addition to
or in lieu of the performance indicators established under
section 1532. Such procedures shall provide that an agency
that does not provide acceptable basic housing conditions
shall be designated a troubled public housing agency.
(b) Agencies Troubled With Respect to Capital Activities.--
The Secretary shall designate, by rule under section 553 of
title 5, United States Code, agencies and managers that are
troubled with respect to capital activities.
(c) Agencies at Risk of Becoming Troubled.--The Secretary
shall designate, by rule under section 553 of title 5, United
States Code, agencies and managers that are at risk of
becoming troubled.
(d) Exemplary Agencies.--The Secretary may also, in
consultation with national organizations representing public
housing agencies and managers and public officials (as the
Secretary determines appropriate), identify and commend
public housing agencies and managers that meet the
performance standards established under section 1532 in an
exemplary manner.
(e) Appeal of Designation.--The Secretary shall establish
procedures for public housing agencies and managers to appeal
designation as a troubled agency or manager (including
designation as a troubled agency or manager for purposes of
capital activities), to petition for removal of such
designation, and to appeal any refusal to remove such
designation.
SEC. 1534. ON-SITE INSPECTION OF TROUBLED PHA'S.
(a) In General.--Upon designating a public housing agency
or manager as troubled pursuant to section 1533 and
determining that an assessment under this section will not
duplicate any other review previously conducted or required
to be conducted of the agency or manager, the Secretary shall
provide for an on-site, independent assessment of the
management of the agency or manager.
(b) Content.--To the extent the Secretary deems appropriate
(taking into consideration an agency's or manager's
performance under the indicators specified under section
1532, the assessment team shall also consider issues relating
to the agency's or manager's resident population and physical
inventory, including the extent to which--
(1) the public housing agency plan for the agency or
manager adequately and appropriately addresses the
rehabilitation needs of the public housing inventory;
(2) residents of the agency or manager are involved in and
informed of significant management decisions; and
(3) any developments in the agency's or manager's inventory
are severely distressed (as such term is defined under
section 1262.
(c) Independent Assessment Team.--An independent assessment
under this section shall be carried out by a team of
knowledgeable individuals selected by the Secretary (referred
to in this title as the ``assessment team'') with expertise
in public housing and real estate management. In conducting
an assessment, the assessment team shall consult with the
residents and with public and private entities in the
jurisdiction in which the public housing is located. The
assessment team shall provide to the Secretary and the public
housing agency or manager a written report, which shall
contain, at a minimum, recommendations for such management
improvements as are necessary to eliminate or substantially
remedy existing deficiencies.
SEC. 1535. ADMINISTRATION.
(a) PHA's.--The Secretary shall carry out this subtitle
with respect to public housing agencies substantially in the
same manner as the public housing management assessment
system under section 6(j) of the United States Housing Act of
1937 (as in effect immediately before the effective date of
the repeal under section 1601(b) of this Act) was required to
be carried out with respect to public housing agencies. The
Secretary may comply with the requirements under this
subtitle by using any regulations issued to carry out such
system and issuing any additional regulations necessary to
make such system comply with the requirements under this
subtitle.
(b) Other Managers.--The Secretary shall establish specific
standards and procedures for carrying out this subtitle with
respect to managers of public housing that are not public
housing agencies. Such standards and procedures shall take in
consideration special circumstances relating to entities
hired, directed, or appointed to manage public housing.
Subtitle D--Accountability and Oversight Standards and Procedures
SEC. 1541. AUDITS.
(a) By Secretary and Comptroller General.--Each block grant
contract under section 1201 and each contract for housing
assistance amounts under section 1302 shall provide that the
Secretary, the Inspector General of the Department of Housing
and Urban Development, and the Comptroller General of the
United States, or any of their duly authorized
representatives, shall, for the purpose of audit and
examination, have access to any books, documents, papers, and
records of the public housing agency (or other entity)
entering into such contract that are pertinent to this
division and to its operations with respect to financial
assistance under this division.
(b) By PHA.--
(1) Requirement.--Each public housing agency that owns or
operates 250 or more public housing dwelling units and
receives assistance under this division shall have an audit
made in accordance with chapter 75 of title 31, United States
Code. The Secretary, the Inspector General of the Department
of Housing and Urban Development, and the Comptroller General
of the United States shall have access to all books,
documents, papers, or other records that are pertinent to the
activities carried out under this division in order to make
audit examinations, excerpts, and transcripts.
(2) Withholding of amounts.--The Secretary may, in the sole
discretion of the Secretary, arrange for, and pay the costs
of, an audit required under paragraph (1). In such
circumstances, the Secretary may withhold, from assistance
otherwise payable to the agency under this division, amounts
sufficient to pay for the reasonable costs of conducting an
acceptable audit, including, when appropriate, the reasonable
costs of accounting services necessary to place the agency's
books and records in auditable condition.
[[Page H5805]]
SEC. 1542. PERFORMANCE AGREEMENTS FOR AUTHORITIES AT RISK OF
BECOMING TROUBLED.
(a) In General.--Upon designation of a public housing
agency as at risk of becoming troubled under section 1533(c),
the Secretary shall seek to enter into an agreement with the
agency providing for improvement of the elements of the
agency that have been identified. An agreement under this
section shall contain such terms and conditions as the
Secretary determines are appropriate for addressing the
elements identified, which may include an on-site,
independent assessment of the management of the agency.
(b) Powers of Secretary.--If the Secretary determines that
such action is necessary to prevent the public housing agency
from becoming a troubled agency, the Secretary may--
(1) solicit competitive proposals from other public housing
agencies and private housing management agents (which may be
selected by existing tenants through administrative
procedures established by the Secretary), for any case in
which such agents may be needed for managing all, or part, of
the housing or functions administered by the agency; or
(2) solicit competitive proposals from other public housing
agencies and private entities with experience in construction
management, for any case in which such authorities or firms
may be needed to oversee implementation of assistance made
available for capital improvement for public housing of the
agency.
SEC. 1543. PERFORMANCE AGREEMENTS AND CDBG SANCTIONS FOR
TROUBLED PHA'S.
(a) In General.--Upon designation of a public housing
agency as a troubled agency under section 1533(a) and after
reviewing the report submitted pursuant to section 1534(c)
and consulting with the assessment team for the agency under
section 1534, the Secretary shall seek to enter into an
agreement with the agency providing for improving the
management performance of the agency.
(b) Contents.--An agreement under this section between the
Secretary and a public housing agency shall set forth--
(1) targets for improving performance, as measured by the
guidelines and standards established under section 1532 and
other requirements within a specified period of time, which
shall include targets to be met upon the expiration of the
12-month period beginning upon entering into the agreement;
(2) strategies for meeting such targets;
(3) sanctions for failure to implement such strategies; and
(4) to the extent the Secretary deems appropriate, a plan
for enhancing resident involvement in the management of the
public housing agency.
(c) Local Assistance in Implementation.--The Secretary and
the public housing agency shall, to the maximum extent
practicable, seek the assistance of local public and private
entities in carrying out an agreement under this section.
(d) Default Under Performance Agreement.--Upon the
expiration of the 12-month period beginning upon entering
into an agreement under this section with a public housing
agency, the Secretary shall review the performance of the
agency in relation to the performance targets and strategies
under the agreement. If the Secretary determines that the
agency has failed to comply with the performance targets
established for such period, the Secretary shall take the
action authorized under subsection (b)(2) or (b)(5) of
section 1545.
(e) CDBG Sanction Against Local Government Contributing to
Troubled Status of PHA.--If the Secretary determines that the
actions or inaction of any unit of general local government
within which any portion of the jurisdiction of a public
housing agency is located has substantially contributed to
the conditions resulting in the agency being designated under
section 1533(a) as a troubled agency, the Secretary may
redirect or withhold, from such unit of general local
government any amounts allocated for such unit under section
106 of the Housing and Community Development Act of 1974.
SEC. 1544. OPTION TO DEMAND CONVEYANCE OF TITLE TO OR
POSSESSION OF PUBLIC HOUSING.
(a) Authority for Conveyance.--A contract under section
1201 for block grants under title XII (including contracts
which amend or supersede contracts previously made (including
contracts for contributions)) may provide that upon the
occurrence of a substantial default with respect to the
covenants or conditions to which the public housing agency is
subject (as such substantial default shall be defined in such
contract), the public housing agency shall be obligated, at
the option of the Secretary, to--
(1) convey title in any case where, in the determination of
the Secretary (which determination shall be final and
conclusive), such conveyance of title is necessary to achieve
the purposes of this division; or
(2) deliver to the Secretary possession of the development,
as then constituted, to which such contract relates.
(b) Obligation to Reconvey.--Any block grant contract under
title XII containing the provisions authorized in subsection
(a) shall also provide that the Secretary shall be obligated
to reconvey or redeliver possession of the development, as
constituted at the time of reconveyance or redelivery, to
such public housing agency or to its successor (if such
public housing agency or a successor exists) upon such terms
as shall be prescribed in such contract, and as soon as
practicable after--
(1) the Secretary is satisfied that all defaults with
respect to the development have been cured, and that the
development will, in order to fulfill the purposes of this
division, thereafter be operated in accordance with the terms
of such contract; or
(2) the termination of the obligation to make annual block
grants to the agency, unless there are any obligations or
covenants of the agency to the Secretary which are then in
default.
Any prior conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right to
require a conveyance or delivery of possession of the
development to the Secretary pursuant to subsection (a) upon
the subsequent occurrence of a substantial default.
(c) Continued Grants for Repayment of Bonds and Notes Under
1937 Act.--If--
(1) a contract for block grants under title XII for an
agency includes provisions that expressly state that the
provisions are included pursuant to this subsection, and
(2) the portion of the block grant payable for debt service
requirements pursuant to the contract has been pledged by the
public housing agency as security for the payment of the
principal and interest on any of its obligations, then--
(A) the Secretary shall (notwithstanding any other
provisions of this division), continue to make the block
grant payments for the agency so long as any of such
obligations remain outstanding; and
(B) the Secretary may covenant in such a contract that in
any event such block grant amounts shall in each year be at
least equal to an amount which, together with such income or
other funds as are actually available from the development
for the purpose at the time such block grant payments are
made, will suffice for the payment of all installments of
principal and interest on the obligations for which the
amounts provided for in the contract shall have been pledged
as security that fall due within the next succeeding 12
months.
In no case shall such block grant amounts be in excess of the
maximum sum specified in the contract involved, nor for
longer than the remainder of the maximum period fixed by the
contract.
SEC. 1545. REMOVAL OF INEFFECTIVE PHA'S.
(a) Conditions of Removal.--The actions specified in
subsection (b) may be taken only upon--
(1) the occurrence of events or conditions that constitute
a substantial default by a public housing agency with respect
to (A) the covenants or conditions to which the public
housing agency is subject, or (B) an agreement entered into
under section 1543; or
(2) submission to the Secretary of a petition by the
residents of the public housing owned or operated by a public
housing agency that is designated as troubled pursuant to
section 1533(a).
(b) Removal Actions.--Notwithstanding any other provision
of law or of any block grant contract under title XII or any
grant agreement under title XIII, in accordance with
subsection (a), the Secretary may--
(1) solicit competitive proposals from other public housing
agencies and private housing management agents (which, in the
discretion of the Secretary, may be selected by existing
public housing residents through administrative procedures
established by the Secretary) and, if appropriate, provide
for such agents to manage all, or part, of the housing
administered by the public housing agency or all or part of
the other functions of the agency;
(2) take possession of the public housing agency, including
any developments or functions of the agency under any section
of this division;
(3) solicit competitive proposals from other public housing
agencies and private entities with experience in construction
management and, if appropriate, provide for such authorities
or firms to oversee implementation of assistance made
available for capital improvements for public housing;
(4) require the agency to make other arrangements
acceptable to the Secretary and in the best interests of the
public housing residents and assisted families under title
XIII for managing all, or part of, the public housing
administered by the agency or the functions of the agency; or
(5) petition for the appointment of a receiver for the
public housing agency to any district court of the United
States or to any court of the State in which any portion of
the jurisdiction of the public housing agency is located,
that is authorized to appoint a receiver for the purposes and
having the powers prescribed in this section.
(c) Emergency Assistance.--The Secretary may make available
to receivers and other entities selected or appointed
pursuant to this section such assistance as is fair and
reasonable to remedy the substantial deterioration of living
conditions in individual public housing developments or other
related emergencies that endanger the health, safety and
welfare of public housing residents or assisted families
under title XIII.
(d) Powers of Secretary.--If the Secretary takes possession
of an agency, or any developments or functions of an agency,
pursuant to subsection (b)(2), the Secretary--
(1) may abrogate contracts that substantially impede
correction of the substantial default or improvement of the
classification, but only after efforts to renegotiate such
contracts have failed and the Secretary has made a written
determination regarding such abrogation, which shall be
available to
[[Page H5806]]
the public upon request, identify such contracts, and explain
the determination that such contracts may be abrogated;
(2) may demolish and dispose of assets of the agency in
accordance with section 1261;
(3) where determined appropriate by the Secretary, may
require the establishment of one or more new public housing
agencies;
(4) may consolidate the agency into other well-managed
public housing agencies with the consent of such well-managed
authorities;
(5) shall not be subject to any State or local laws
relating to civil service requirements, employee rights,
procurement, or financial or administrative controls that, in
the determination of the Secretary, substantially impede
correction of the substantial default or improvement of the
classification, but only if the Secretary has made a written
determination regarding such inapplicability, which shall be
available to the public upon request, identify such
inapplicable laws, and explain the determination that such
laws impede such correction; and
(6) shall have such additional authority as a district
court of the United States has the authority to confer under
like circumstances upon a receiver to achieve the purposes of
the receivership.
The Secretary may appoint, on a competitive or noncompetitive
basis, an individual or entity as an administrative receiver
to assume the Secretary's responsibility under this paragraph
for the administration of a public housing agency. The
Secretary may delegate to the administrative receiver any or
all of the powers of the Secretary under this subsection.
Regardless of any delegation under this subsection, an
administrative receiver may not require the establishment of
one or more new public housing agencies pursuant to paragraph
(3) unless the Secretary first approves such establishment.
For purposes of this subsection, the term ``public housing
agency'' includes any developments or functions of a public
housing agency under any section of this title.
(e) Receivership.--
(1) Required appointment.--In any proceeding under
subsection (b)(5), upon a determination that a substantial
default has occurred, and without regard to the availability
of alternative remedies, the court shall appoint a receiver
to conduct the affairs of the public housing agency in a
manner consistent with this division and in accordance with
such further terms and conditions as the court may provide.
The receiver appointed may be another public housing agency,
a private management corporation, the Secretary, or any other
appropriate entity. The court shall have power to grant
appropriate temporary or preliminary relief pending final
disposition of the petition by the Secretary.
(2) Powers of receiver.--If a receiver is appointed for a
public housing agency pursuant to subsection (b)(5), in
addition to the powers accorded by the court appointing the
receiver, the receiver--
(A) may abrogate contracts that substantially impede
correction of the substantial default or improvement of the
classification, but only after bona fide efforts to
renegotiate such contracts have failed and the receiver has
made a written determination regarding such abrogation, which
shall be available to the public upon request, identify such
contracts, and explain the determination that such contracts
may be abrogated;
(B) may demolish and dispose of assets of the agency in
accordance with section 1261;
(C) where determined appropriate by the Secretary, may
require the establishment of one or more new public housing
agencies, to the extent permitted by State and local law; and
(D) except as provided in subparagraph (C), shall not be
subject to any State or local laws relating to civil service
requirements, employee rights, procurement, or financial or
administrative controls that, in the determination of the
receiver, substantially impede correction of the substantial
default or improvement of the classification, but only if the
receiver has made a written determination regarding such
inapplicability, which shall be available to the public upon
request, identify such inapplicable laws, and explain the
determination that such laws impede such correction.
For purposes of this paragraph, the term ``public housing
agency'' includes any developments or functions of a public
housing agency under any section of this title.
(3) Termination.--The appointment of a receiver pursuant to
this subsection may be terminated, upon the petition of any
party, when the court determines that all defaults have been
cured or the public housing agency will be able to make the
same amount of progress in correcting the management of the
housing as the receiver.
(f) Liability.--If the Secretary takes possession of an
agency pursuant to subsection (b)(2) or a receiver is
appointed pursuant to subsection (b)(5) for a public housing
agency, the Secretary or the receiver shall be deemed to be
acting in the capacity of the public housing agency (and not
in the official capacity as Secretary or other official) and
any liability incurred shall be a liability of the public
housing agency.
(g) Effectiveness.--The provisions of this section shall
apply with respect to actions taken before, on, or after the
effective date of this division and shall apply to any
receivers appointed for a public housing agency before the
effective date of this division.
SEC. 1546. MANDATORY TAKEOVER OF CHRONICALLY TROUBLED PHA'S.
(a) Removal of Agency.--Notwithstanding any other provision
of this division, not later than the expiration of the 180-
day period beginning on the effective date of this division,
the Secretary shall take one of the following actions with
respect to each chronically troubled public housing agency:
(1) Contracting for management.--Solicit competitive
proposals for the management of the agency pursuant to
section 1545(b)(1) and replace the management of the agency
pursuant to selection of such a proposal.
(2) Takeover.--Take possession of the agency pursuant to
section 1545(b)(2).
(3) Petition for receiver.--Petition for the appointment of
a receiver for the agency pursuant to section 1545(b)(5).
(b) Definition.--For purposes of this section, the term
``chronically troubled public housing agency'' means a public
housing agency that, as of the effective date of this
division, is designated under section 6(j)(2) of the United
States Housing Act of 1937 (as in effect immediately before
the effective date of the repeal under section 1601(b) of
this Act) as a troubled public housing agency and has been so
designated continuously for the 3-year period ending upon the
effective date of this division; except that such term does
not include any agency that owns or operates less than 1250
public housing dwelling units and that the Secretary
determines can, with a reasonable amount of effort, make such
improvements or remedies as may be necessary to remove its
designation as troubled within 12 months.
SEC. 1547. TREATMENT OF TROUBLED PHA'S.
(a) Effect of Troubled Status on CHAS.--The comprehensive
housing affordability strategy (or any consolidated plan
incorporating such strategy) for the State or unit of general
local government in which any troubled public housing agency
is located shall not be considered to comply with the
requirements under section 105 of the Cranston-Gonzalez
National Affordable Housing Act unless such plan includes a
description of the manner in which the State or unit will
assist such troubled agency in improving its operations to
remove such designation.
(b) Definition.--For purposes of this section, the term
``troubled public housing agency'' means a public housing
agency that--
(1) upon the effective date of this division, is designated
under section 6(j)(2) of the United States Housing Act of
1937 (as in effect immediately before the effective date of
the repeal under section 1601(b) of this Act) as a troubled
public housing agency; and
(2) is not a chronically troubled public housing agency, as
such term is defined in section 1546(b) of this Act.
SEC. 1548. MAINTENANCE OF RECORDS.
Each public housing agency shall keep such records as may
be reasonably necessary to disclose the amount and the
disposition by the agency of the proceeds of assistance
received pursuant to this division and to ensure compliance
with the requirements of this division.
SEC. 1549. ANNUAL REPORTS REGARDING TROUBLED PHA'S.
The Secretary shall submit a report to the Congress
annually, as a part of the report of the Secretary under
section 8 of the Department of Housing and Urban Development
Act, that--
(1) identifies the public housing agencies that are
designated under section 1533 as troubled or at-risk of
becoming troubled and the reasons for such designation; and
(2) describes any actions that have been taken in
accordance with sections 1542, 1543, 1544, and 1545.
SEC. 1550. APPLICABILITY TO RESIDENT MANAGEMENT CORPORATIONS.
The Secretary shall apply the provisions of this subtitle
to resident management corporations in the same manner as
applied to public housing agencies.
SEC. 1551. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW
ORLEANS.
(a) Establishment.--The Secretary and the Housing Authority
of New Orleans (in this section referred to as the ``Housing
Authority'') shall, pursuant to the cooperative endeavor
agreement in effect between the Secretary and the Housing
Authority, establish an advisory council for the Housing
Authority of New Orleans (in this section referred to as the
``advisory council'') that complies with the requirements of
this section.
(b) Membership.--
(1) In general.--The advisory council shall be appointed by
the Secretary, not later than 90 days after the date of the
enactment of this Act, and shall be composed of the following
members:
(A) The Inspector General of the Department of Housing and
Urban Development (or the Inspector General's designee).
(B) Not more than 7 other members, who shall be selected
for appointment based on their experience in successfully
reforming troubled public housing agencies or in providing
affordable housing in coordination with State and local
governments, the private sector, affordable housing
residents, or local nonprofit organizations.
(2) Prohibition on additional pay.--Members of the advisory
council shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary
expenses incurred in the performance of their duties as
members of the Board using amounts from the Headquarters
Reserve fund pursuant to section 1111(b)(4).
[[Page H5807]]
(c) Functions.--The advisory council shall--
(1) establish standards and guidelines for assessing the
performance of the Housing Authority in carrying out
operational, asset management, and financial functions for
purposes of the reports and finding under subsections (d) and
(e), respectively;
(2) provide advice, expertise, and recommendations to the
Housing Authority regarding the management, operation,
repair, redevelopment, revitalization, demolition, and
disposition of public housing developments of the Housing
Authority;
(3) report to the Congress under subsection (d) regarding
any progress of the Housing Authority in improving the
performance of its functions; and
(4) make a final finding to the Congress under subsection
(e) regarding the future of the Housing Authority.
(d) Quarterly Reports.--The advisory council shall report
to the Congress and the Secretary not less than every 3
months regarding the performance of the Housing Authority and
any progress of the authority in improving its performance
and carrying out its functions.
(e) Final Finding.--Upon the expiration of the 18-month
period that begins upon the appointment under subsection
(b)(1) of all members of the advisory council, the council
shall make and submit to the Congress and the Secretary a
finding of whether the Housing Authority has substantially
improved its performance, the performance of its functions,
and the overall condition of the Authority such that the
Authority should be allowed to continue to operate as the
manager of the public housing of the Authority. In making the
finding under this subsection, the advisory council shall
consider whether the Housing Authority has made sufficient
progress in the demolition and revitalization of the Desire
Homes development, the revitalization of the St. Thomas Homes
development, the appropriate allocation of operating subsidy
amounts, and the appropriate expending of modernization
amounts.
(f) Receivership.--If the advisory council finds under
subsection (e) that the Housing Authority has not
substantially improved its performance such that the
Authority should be allowed to continue to operate as the
manager of the public housing of the Authority, the Secretary
shall (notwithstanding section 1545(a)) petition under
section 1545(b) for the appointment of a receiver for the
Housing Authority, which receivership shall be subject to the
provisions of section 1545.
(g) Exemption.--The provisions of section 1546 shall not
apply to the Housing Authority.
TITLE XVI--REPEALS AND RELATED AMENDMENTS
Subtitle A--Repeals, Effective Date, and Savings Provisions
SEC. 1601. EFFECTIVE DATE AND REPEAL OF UNITED STATES HOUSING
ACT OF 1937.
(a) Effective Date.--
(1) In general.--This division and the amendments made by
this division shall take effect on October 1, 1999, except as
otherwise provided in this section.
(2) Specific effective dates.--Any provision of this
division that specifically provides for the effective date of
such provision shall take effect in accordance with the terms
of the provision.
(b) Repeal of United States Housing Act of 1937.--Effective
upon the effective date under subsection (a)(1), the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
repealed, subject to the conditions under subsection (c).
(c) Savings Provisions.--
(1) Obligations under 1937 act.--Any obligation of the
Secretary made under authority of the United States Housing
Act of 1937 shall continue to be governed by the provisions
of such Act, except that--
(A) notwithstanding the repeal of such Act, the Secretary
may make a new obligation under such Act upon finding that
such obligation is required--
(i) to protect the financial interests of the United States
or the Department of Housing and Urban Development; or
(ii) for the amendment, extension, or renewal of existing
obligations; and
(B) notwithstanding the repeal of such Act, the Secretary
may, in accordance with subsection (d), issue regulations and
other guidance and directives as if such Act were in effect
if the Secretary finds that such action is necessary to
facilitate the administration of obligations under such Act.
(2) Transition of funding.--Amounts appropriated under the
United States Housing Act of 1937 shall, upon repeal of such
Act, remain available for obligation under such Act in
accordance with the terms under which amounts were made
available.
(3) Cross references.--The provisions of the United States
Housing Act of 1937 shall remain in effect for purposes of
the validity of any reference to a provision of such Act in
any statute (other than such Act) until such reference is
modified by law or repealed.
(d) Publication and Effective Date of Savings Provisions.--
(1) Submission to congress.--The Secretary shall submit 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 a copy of any proposed
regulation, guidance, or directive under subsection
(c)(1)(B).
(2) Opportunity to review.--Such a regulation, guidance, or
directive may not be published for comment or for final
effectiveness before or during the 15-calendar day period
beginning on the day after the date on which such regulation,
guidance, or directive was submitted to the Congress.
(3) Effective date.--No regulation, guideline, or directive
may become effective until after the expiration of the 30-
calendar day period beginning on the day after the day on
which such rule or regulation is published as final.
(4) Waiver.--The provisions of paragraphs (2) and (3) may
be waived upon the written request of the Secretary, if
agreed to by the Chairmen and Ranking Minority Members of
both Committees.
(e) Modifications.--Notwithstanding any provision of this
division or any annual contributions contract or other
agreement entered into by the Secretary and a public housing
agency pursuant to the provisions of the United States
Housing Act of 1937 (as in effect before the effective date
of the repeal under section 1601(b) of this Act), the
Secretary and the agency may by mutual consent amend,
supersede, or modify any such agreement as appropriate to
provide for assistance under this division, except that the
Secretary and the agency may not consent to any such
amendment, supersession, or modification that substantially
alters any outstanding obligations requiring continued
maintenance of the low-income character of any public housing
development and any such amendment, supersession, or
modification shall not be given effect.
(f) Section 8 Project-Based Assistance.--
(1) In general.--The provisions of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall remain in
effect after the effectiveness of the repeal under subsection
(b) with respect to all section 8 project-based assistance,
pursuant to existing and future contracts, except as
otherwise provided by this section.
(2) Tenant selection preferences.--An owner of housing
assisted with section 8 project-based assistance shall give
preference, in the selection of tenants for units of such
projects that become available, according to any system of
local preferences established pursuant to section 1223 by the
public housing agency having jurisdiction for the area in
which such projects are located.
(3) 1-year notification.--Paragraphs (9) and (10) of
section 8(c) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)) shall not be applicable to section 8
project-based assistance.
(4) Lease terms.--Leases for dwelling units assisted with
section 8 project-based assistance shall comply with the
provisions of paragraphs (1) and (3) of section 1324 of this
Act and shall not be subject to the provisions of 8(d)(1)(B)
of the United States Housing Act of 1937.
(5) Termination of tenancy.--Any termination of tenancy of
a resident of a dwelling unit assisted with section 8
project-based assistance shall comply with the provisions of
section 1324(2) and section 1325 of this Act and shall not be
subject to the provisions of section 8(d)(1)(B) of the United
States Housing Act of 1937.
(6) Treatment of common areas.--The Secretary may not
provide any assistance amounts pursuant to an existing
contract for section 8 project-based assistance for a housing
project and may not enter into a new or renewal contract for
such assistance for a project unless the owner of the project
provides consent, to such local law enforcement agencies as
the Secretary determines appropriate, for law enforcement
officers of such agencies to enter common areas of the
project at any time and without advance notice upon a
determination of probable cause by such officers that
criminal activity is taking place in such areas.
(7) Definition.--For purposes of this subsection, the term
``section 8 project-based assistance'' means assistance under
any of the following programs:
(A) 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).
(B) The property disposition program under section 8(b) of
the United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 1601(b) of
this Act).
(C) The loan management set-aside program under subsections
(b) and (v) of section 8 of such Act.
(D) The project-based certificate program under section
8(d)(2) of such Act.
(E) The moderate rehabilitation program under section
8(e)(2) of the United States Housing Act of 1937 (as in
effect before October 1, 1991).
(F) The low-income housing preservation program under Low-
Income Housing Preservation and Resident Homeownership Act of
1990 or the provisions of the Emergency Low Income Housing
Preservation Act of 1987 (as in effect before November 28,
1990).
(G) Section 8 of the United States Housing Act of 1937 (as
in effect before the effective date of the repeal under
section 1601(b) of this Act), following conversion from
assistance under section 101 of the Housing and Urban
Development Act of 1965 or section 236(f)(2) of the National
Housing Act.
(g) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 1602. OTHER REPEALS.
(a) In General.--The following provisions of law are hereby
repealed:
[[Page H5808]]
(1) Assisted housing allocation.--Section 213 of the
Housing and Community Development Act of 1974 (42 U.S.C.
1439).
(2) Public housing rent waivers for police.--Section 519 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437a-1).
(3) Treatment of certificate and voucher holders.--
Subsection (c) of section 183 of the Housing and Community
Development Act of 1987 (42 U.S.C. 1437f note).
(4) Excessive rent burden data.--Subsection (b) of section
550 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437f note).
(5) Moving to opportunity for fair housing.--Section 152 of
the Housing and Community Development Act of 1992 (42 U.S.C.
1437f note).
(6) Report regarding fair housing objectives.--Section 153
of the Housing and Community Development Act of 1992 (42
U.S.C. 1437f note).
(7) Special projects for elderly or handicapped families.--
Section 209 of the Housing and Community Development Act of
1974 (42 U.S.C. 1438).
(8) Access to pha books.--Section 816 of the Housing Act of
1954 (42 U.S.C. 1435).
(9) Miscellaneous provisions.--Subsections (b)(1) and (d)
of section 326 of the Housing and Community Development
Amendments of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C.
1437f note).
(10) Payment for development managers.--Section 329A of the
Housing and Community Development Amendments of 1981 (42
U.S.C. 1437j-1).
(11) Procurement of insurance by pha's.--In the item
relating to ``administrative provisions'' under the heading
``Management and Administration'' in title II of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1991, the penultimate undesignated paragraph of such item
(Public Law 101-507; 104 Stat. 1369).
(12) Public housing childhood development.--Section 222 of
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
1701z-6 note).
(13) Indian housing childhood development.--Section 518 of
the Cranston-Gonzalez National Affordable Housing Act (12
U.S.C. 1701z-6 note).
(14) Public housing comprehensive transition
demonstration.--Section 126 of the Housing and Community
Development Act of 1987 (42 U.S.C. 1437f note).
(15) Public housing one-stop perinatal services
demonstration.--Section 521 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437t note).
(16) Public housing mincs demonstration.--Section 522 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note).
(17) Public housing energy efficiency demonstration.--
Section 523 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 1437g note).
(18) Omaha homeownership demonstration.--Section 132 of the
Housing and Community Development Act of 1992 (Public Law
102-550; 106 Stat. 3712).
(19) Public and assisted housing youth sports programs.--
Section 520 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 11903a).
(20) Frost-leland provisions.--Section 415 of the
Department of Housing and Urban Development--Independent
Agencies Appropriations Act, 1988 (Public Law 100-202; 101
Stat. 1329-213); except that, notwithstanding any other
provision of law, beginning on the date of enactment of this
Act, the public housing projects described in section 415 of
such appropriations Act (as such section existed immediately
before the date of enactment of this Act) shall be eligible
for demolition--
(A) under section 14 of the United States Housing Act of
1937 (as such section existed upon the enactment of this
Act); and
(B) under section 9 of the United States Housing Act of
1937.
(21) Multifamily financing.--The penultimate sentence of
section 302(b)(2) of the National Housing Act (12 U.S.C.
1717(b)(2)) and the penultimate sentence of section 305(a)(2)
of the Emergency Home Finance Act of 1970 (12 U.S.C.
1454(a)(2)).
(22) Conflicts of interest.--Subsection (c) of section 326
of the Housing and Community Development Amendments of 1981
(42 U.S.C. 1437f note).
(23) Conversion of public housing.--Section 202 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1996 (42 U.S.C. 1437l note) (enacted as section 101(e) of the
Omnibus Consolidated Rescissions and Appropriations Act of
1996 (Public Law 104-134; 110 Stat. 1321-279)).
(b) Savings Provision.--Except to the extent otherwise
provided in this division--
(1) the repeals made by subsection (a) shall not affect any
legally binding obligations entered into before the effective
date of this division; and
(2) any funds or activities subject to a provision of law
repealed by subsection (a) shall continue to be governed by
the provision as in effect immediately before such repeal.
Subtitle B--Other Provisions Relating to Public Housing and Rental
Assistance Programs
SEC. 1621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.
Section 202(l) of the Housing Act of 1959 (12 U.S.C.
1701q(l)) is amended by adding at the end the following new
paragraph:
``(4) Consideration in allocating assistance.--Assistance
under this section shall be allocated in a manner that
ensures that the awards of the assistance are made for
projects of sufficient size to accommodate facilities for
supportive services appropriate to the needs of frail elderly
residents.''.
SEC. 1622. PET OWNERSHIP.
Section 227 of the Housing and Urban-Rural Recovery Act of
1983 (12 U.S.C. 1701r-1) is amended to read as follows:
``SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL
HOUSING.
``(a) Right of Ownership.--A resident of a dwelling unit in
federally assisted rental housing may own common household
pets or have common household pets present in the dwelling
unit of such resident, subject to the reasonable requirements
of the owner of the federally assisted rental housing and
providing that the resident maintains the animals responsibly
and in compliance with applicable local and State public
health, animal control, and anticruelty laws. Such reasonable
requirements may include requiring payment of a nominal fee
and pet deposit by residents owning or having pets present,
to cover the operating costs to the project relating to the
presence of pets and to establish an escrow account for
additional such costs not otherwise covered, respectively.
Notwithstanding section 1225(d) of the Housing Opportunity
and Responsibility Act of 1997, a public housing agency may
not grant any exemption under such section from payment, in
whole or in part, of any fee or deposit required pursuant to
the preceding sentence.
``(b) Prohibition Against Discrimination.--No owner of
federally assisted rental housing may restrict or
discriminate against any person in connection with admission
to, or continued occupancy of, such housing by reason of the
ownership of common household pets by, or the presence of
such pets in the dwelling unit of, such person.
``(c) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Federally assisted rental housing.--The term
`federally assisted rental housing' means any multifamily
rental housing project that is--
``(A) public housing (as such term is defined in section
1103 of the Housing Opportunity and Responsibility Act of
1997);
``(B) assisted with project-based assistance pursuant to
section 1601(f) of the Housing Opportunity and Responsibility
Act of 1997 or under section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of the
repeal under section 1601(b) of the Housing Opportunity and
Responsibility Act of 1997);
``(C) assisted under section 202 of the Housing Act of 1959
(as amended by section 801 of the Cranston-Gonzalez National
Affordable Housing Act);
``(D) assisted under section 202 of the Housing Act of 1959
(as in effect before the enactment of the Cranston-Gonzalez
National Affordable Housing Act);
``(E) assisted under title V of the Housing Act of 1949; or
``(F) insured, assisted, or held by the Secretary or a
State or State agency under section 236 of the National
Housing Act.
``(2) Owner.--The term `owner' means, with respect to
federally assisted rental housing, the entity or private
person, including a cooperative or public housing agency,
that has the legal right to lease or sublease dwelling units
in such housing (including a manager of such housing having
such right).
``(d) Regulations.--This section shall take effect upon the
date of the effectiveness of regulations issued by the
Secretary to carry out this section. Such regulations shall
be issued not later than the expiration of the 1-year period
beginning on the date of the enactment of the Housing
Opportunity and Responsibility Act of 1997 and after notice
and opportunity for public comment in accordance with the
procedure under section 553 of title 5, United States Code,
applicable to substantive rules (notwithstanding subsections
(a)(2), (b)(B), and (d)(3) of such section).''.
SEC. 1623. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.
(a) Requirement.--The Secretary of Housing and Urban
Development shall investigate all security contracts awarded
by grantees under the Public and Assisted Housing Drug
Elimination Act of 1990 (42 U.S.C. 11901 et seq.) that are
public housing agencies that own or operate more than 4,500
public housing dwelling units--
(1) to determine whether the contractors under such
contracts have complied with all laws and regulations
regarding prohibition of discrimination in hiring practices;
(2) to determine whether such contracts were awarded in
accordance with the applicable laws and regulations regarding
the award of such contracts;
(3) to determine how many such contracts were awarded under
emergency contracting procedures;
(4) to evaluate the effectiveness of the contracts; and
(5) to provide a full accounting of all expenses under the
contracts.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall complete the
investigation required under subsection (a) and submit a
report to the Congress regarding the findings under the
investigation. With respect to each such contract, the report
shall (1) state whether the contract was made and is
operating, or was not made or is not operating, in full
compliance with applicable laws and regulations, and (2) for
each contract that the
[[Page H5809]]
Secretary determines is in such compliance issue a personal
certification of such compliance by the Secretary of Housing
and Urban Development.
(c) Actions.--For each contract that is described in the
report under subsection (b) as not made or not operating in
full compliance with applicable laws and regulations, the
Secretary of Housing and Urban Development shall promptly
take any actions available under law or regulation that are
necessary--
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 1624. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG
ELIMINATION ACT OF 1990.
(a) Short Title, Purposes, and Authority to Make Grants.--
Chapter 2 of subtitle C of title V of the Anti-Drug Abuse Act
of 1988 (42 U.S.C. 11901 et seq.) is amended by striking the
chapter heading and all that follows through section 5123 and
inserting the following:
``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME
``SEC. 5121. SHORT TITLE.
``This chapter may be cited as the `Community Partnerships
Against Crime Act of 1997'.
``SEC. 5122. PURPOSES.
``The purposes of this chapter are to--
``(1) improve the quality of life for the vast majority of
law-abiding public housing residents by reducing the levels
of fear, violence, and crime in their communities;
``(2) broaden the scope of the Public and Assisted Housing
Drug Elimination Act of 1990 to apply to all types of crime,
and not simply crime that is drug-related; and
``(3) reduce crime and disorder in and around public
housing through the expansion of community-oriented policing
activities and problem solving.
``SEC. 5123. AUTHORITY TO MAKE GRANTS.
``The Secretary of Housing and Urban Development may make
grants in accordance with the provisions of this chapter for
use in eliminating crime in and around public housing and
other federally assisted low-income housing projects to (1)
public housing agencies, and (2) private, for-profit and
nonprofit owners of federally assisted low-income housing.''.
(b) Eligible Activities.--
(1) In general.--Section 5124(a) of the Anti-Drug Abuse Act
of 1988 (42 U.S.C. 11903(a)) is amended--
(A) in the matter preceding paragraph (1), by inserting
``and around'' after ``used in'';
(B) in paragraph (3), by inserting before the semicolon the
following: ``, including fencing, lighting, locking, and
surveillance systems'';
(C) in paragraph (4), by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) to investigate crime; and'';
(D) in paragraph (6)--
(i) by striking ``in and around public or other federally
assisted low-income housing projects''; and
(ii) by striking ``and'' after the semicolon; and
(E) by striking paragraph (7) and inserting the following
new paragraphs:
``(7) providing funding to nonprofit public housing
resident management corporations and resident councils to
develop security and crime prevention programs involving site
residents;
``(8) the employment or utilization of one or more
individuals, including law enforcement officers, made
available by contract or other cooperative arrangement with
State or local law enforcement agencies, to engage in
community- and problem-oriented policing involving
interaction with members of the community in proactive crime
control and prevention activities;
``(9) programs and activities for or involving youth,
including training, education, recreation and sports, career
planning, and entrepreneurship and employment activities and
after school and cultural programs; and
``(10) service programs for residents that address the
contributing factors of crime, including programs for job
training, education, drug and alcohol treatment, and other
appropriate social services.''.
(2) Other pha-owned housing.--Section 5124(b) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``drug-related crime in'' and inserting
``crime in and around''; and
(ii) by striking ``paragraphs (1) through (7)'' and
inserting ``paragraphs (1) through (10)''; and
(B) in paragraph (2), by striking ``drug-related'' and
inserting ``criminal''.
(c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11904) is amended to read as follows:
``SEC. 5125. GRANT PROCEDURES.
``(a) PHA's With 250 or More Units.--
``(1) Grants.--In each fiscal year, the Secretary shall
make a grant under this chapter from any amounts available
under section 5131(b)(1) for the fiscal year to each of the
following public housing agencies:
``(A) New applicants.--Each public housing agency that owns
or operates 250 or more public housing dwelling units and
has--
``(i) submitted an application to the Secretary for a grant
for such fiscal year, which includes a 5-year crime
deterrence and reduction plan under paragraph (2); and
``(ii) had such application and plan approved by the
Secretary.
``(B) Renewals.--Each public housing agency that owns or
operates 250 or more public housing dwelling units and for
which--
``(i) a grant was made under this chapter for the preceding
Federal fiscal year;
``(ii) the term of the 5-year crime deterrence and
reduction plan applicable to such grant includes the fiscal
year for which the grant under this subsection is to be made;
and
``(iii) the Secretary has determined, pursuant to a
performance review under paragraph (4), that during the
preceding fiscal year the agency has substantially fulfilled
the requirements under subparagraphs (A) and (B) of paragraph
(4).
Notwithstanding subparagraphs (A) and (B), the Secretary may
make a grant under this chapter to a public housing agency
that owns or operates 250 or more public housing dwelling
units only if the agency includes in the application for the
grant information that demonstrates, to the satisfaction of
the Secretary, that the agency has a need for the grant
amounts based on generally recognized crime statistics
showing that (I) the crime rate for the public housing
developments of the agency (or the immediate neighborhoods in
which such developments are located) is higher than the crime
rate for the jurisdiction in which the agency operates, (II)
the crime rate for the developments (or such neighborhoods)
is increasing over a period of sufficient duration to
indicate a general trend, or (III) the operation of the
program under this chapter substantially contributes to the
reduction of crime.
``(2) 5-year crime deterrence and reduction plan.--Each
application for a grant under this subsection shall contain a
5-year crime deterrence and reduction plan. The plan shall be
developed with the participation of residents and appropriate
law enforcement officials. The plan shall describe, for the
public housing agency submitting the plan--
``(A) the nature of the crime problem in public housing
owned or operated by the public housing agency;
``(B) the building or buildings of the public housing
agency affected by the crime problem;
``(C) the impact of the crime problem on residents of such
building or buildings; and
``(D) the actions to be taken during the term of the plan
to reduce and deter such crime, which shall include actions
involving residents, law enforcement, and service providers.
The term of a plan shall be the period consisting of 5
consecutive fiscal years, which begins with the first fiscal
year for which funding under this chapter is provided to
carry out the plan.
``(3) Amount.--In any fiscal year, the amount of the grant
for a public housing agency receiving a grant pursuant to
paragraph (1) shall be the amount that bears the same ratio
to the total amount made available under section 5131(b)(1)
as the total number of public dwelling units owned or
operated by such agency bears to the total number of dwelling
units owned or operated by all public housing agencies that
own or operate 250 or more public housing dwelling units that
are approved for such fiscal year.
``(4) Performance review.--For each fiscal year, the
Secretary shall conduct a performance review of the
activities carried out by each public housing agency
receiving a grant pursuant to this subsection to determine
whether the agency--
``(A) has carried out such activities in a timely manner
and in accordance with its 5-year crime deterrence and
reduction plan; and
``(B) has a continuing capacity to carry out such plan in a
timely manner.
``(5) Submission of applications.--The Secretary shall
establish such deadlines and requirements for submission of
applications under this subsection.
``(6) Review and determination.--The Secretary shall review
each application submitted under this subsection upon
submission and shall approve the application unless the
application and the 5-year crime deterrence and reduction
plan are inconsistent with the purposes of this chapter or
any requirements established by the Secretary or the
information in the application or plan is not substantially
complete. Upon approving or determining not to approve an
application and plan submitted under this subsection, the
Secretary shall notify the public housing agency submitting
the application and plan of such approval or disapproval.
``(7) Disapproval of applications.--If the Secretary
notifies an agency that the application and plan of the
agency is not approved, not later than the expiration of the
15-day period beginning upon such notice of disapproval, the
Secretary shall also notify the agency, in writing, of the
reasons for the disapproval, the actions that the agency
could take to comply with the criteria for approval, and the
deadlines for such actions.
``(8) Failure to approve or disapprove.--If the Secretary
fails to notify an agency of approval or disapproval of an
application and plan submitted under this subsection before
the expiration of the 60-day period beginning upon the
submission of the plan or fails to provide notice under
paragraph (7) within the 15-day period under such paragraph
to an agency whose application has been disapproved, the
application and plan shall be
[[Page H5810]]
considered to have been approved for purposes of this
section.
``(b) PHA's With Fewer Than 250 Units and Owners of
Federally Assisted Low-Income Housing.--
``(1) Applications and plans.--To be eligible to receive a
grant under this chapter, a public housing agency that owns
or operates fewer than 250 public housing dwelling units or
an owner of federally assisted low-income housing shall
submit an application to the Secretary at such time, in such
manner, and accompanied by such additional information as the
Secretary may require. The application shall include a plan
for addressing the problem of crime in and around the housing
for which the application is submitted, describing in detail
activities to be conducted during the fiscal year for which
the grant is requested.
``(2) Grants for pha's with fewer than 250 units.--In each
fiscal year the Secretary may, to the extent amounts are
available under section 5131(b)(2), make grants under this
chapter to public housing agencies that own or operate fewer
than 250 public housing dwelling units and have submitted
applications under paragraph (1) that the Secretary has
approved pursuant to the criteria under paragraph (4).
``(3) Grants for federally assisted low-income housing.--In
each fiscal year the Secretary may, to the extent amounts are
available under section 5131(b)(3), make grants under this
chapter to owners of federally assisted low-income housing
that have submitted applications under paragraph (1) that the
Secretary has approved pursuant to the criteria under
paragraphs (4) and (5).
``(4) Criteria for approval of applications.--The Secretary
shall determine whether to approve each application under
this subsection on the basis of--
``(A) the extent of the crime problem in and around the
housing for which the application is made;
``(B) the quality of the plan to address the crime problem
in the housing for which the application is made;
``(C) the capability of the applicant to carry out the
plan; and
``(D) the extent to which the tenants of the housing, the
local government, local community-based nonprofit
organizations, local tenant organizations representing
residents of neighboring projects that are owned or assisted
by the Secretary, and the local community support and
participate in the design and implementation of the
activities proposed to be funded under the application.
In each fiscal year, the Secretary may give preference to
applications under this subsection for housing made by
applicants who received a grant for such housing for the
preceding fiscal year under this subsection or under the
provisions of this chapter as in effect immediately before
the date of the enactment of the Housing Opportunity and
Responsibility Act of 1997.
``(5) Additional criteria for federally assisted low-income
housing.--In addition to the selection criteria under
paragraph (4), the Secretary may establish other criteria for
evaluating applications submitted by owners of federally
assisted low-income housing, except that such additional
criteria shall be designed only to reflect--
``(A) relevant differences between the financial resources
and other characteristics of public housing agencies and
owners of federally assisted low-income housing; or
``(B) relevant differences between the problem of crime in
public housing administered by such authorities and the
problem of crime in federally assisted low-income housing.''.
(d) Definitions.--Section 5126 of the Anti-Drug Abuse Act
of 1988 (42 U.S.C. 11905) is amended--
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4)(A), by striking ``section'' before
``221(d)(4)'';
(3) by redesignating paragraphs (3) and (4) (as so amended)
as paragraphs (1) and (2), respectively; and
(4) by adding at the end the following new paragraph:
``(3) Public housing agency.--The term `public housing
agency' has the meaning given the term in section 1103 of the
Housing Opportunity and Responsibility Act of 1997.''.
(e) Implementation.--Section 5127 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11906) is amended by striking
``Cranston-Gonzalez National Affordable Housing Act'' and
inserting ``Housing Opportunity and Responsibility Act of
1997''.
(f) Reports.--Section 5128 of the Anti-Drug Abuse Act of
1988 (42 U.S.C. 11907) is amended--
(1) by striking ``drug-related crime in'' and inserting
``crime in and around''; and
(2) by striking ``described in section 5125(a)'' and
inserting ``for the grantee submitted under subsection (a) or
(b) of section 5125, as applicable''.
(g) Funding and Program Sunset.--Chapter 2 of subtitle C of
title V of the Anti-Drug Abuse Act of 1988 is amended by
striking section 5130 (42 U.S.C. 11909) and inserting the
following new section:
``SEC. 5130. FUNDING.
``(a) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this chapter
$290,000,000 for each of fiscal years 1998, 1999, 2000, 2001,
and 2002.
``(b) Allocation.--Of any amounts available, or that the
Secretary is authorized to use, to carry out this chapter in
any fiscal year--
``(1) 85 percent shall be available only for assistance
pursuant to section 5125(a) to public housing agencies that
own or operate 250 or more public housing dwelling units;
``(2) 10 percent shall be available only for assistance
pursuant to section 5125(b)(2) to public housing agencies
that own or operate fewer than 250 public housing dwelling
units; and
``(3) 5 percent shall be available only for assistance to
federally assisted low-income housing pursuant to section
5125(b)(3).
``(c) Retention of Proceeds of Asset Forfeitures by
Inspector General.--Notwithstanding section 3302 of title 31,
United States Code, or any other provision of law affecting
the crediting of collections, the proceeds of forfeiture
proceedings and funds transferred to the Office of Inspector
General of the Department of Housing and Urban Development,
as a participating agency, from the Department of Justice
Assets Forfeiture Fund or the Department of the Treasury
Forfeiture Fund, as an equitable share from the forfeiture of
property in investigations in which the Office of Inspector
General participates, shall be deposited to the credit of the
Office of Inspector General for Operation Safe Home
activities authorized under the Inspector General Act of
1978, as amended, to remain available until expended.''.
(h) Conforming Amendments.--The table of contents in
section 5001 of the Anti-Drug Abuse Act of 1988 (Public Law
100-690; 102 Stat. 4295) is amended--
(1) by striking the item relating to the heading for
chapter 2 of subtitle C of title V and inserting the
following:
``Chapter 2--Community Partnerships Against Crime'';
(2) by striking the item relating to section 5122 and
inserting the following new item:
``Sec. 5122. Purposes.'';
(3) by striking the item relating to section 5125 and
inserting the following new item:
``Sec. 5125. Grant procedures.'';
and
(4) by striking the item relating to section 5130 and
inserting the following new item:
``Sec. 5130. Funding.''.
(i) Treatment of NOFA.--The cap limiting assistance under
the Notice of Funding Availability issued by the Department
of Housing and Urban Development in the Federal Register of
April 8, 1996, shall not apply to a public housing agency
within an area designated as a high intensity drug
trafficking area under section 1005(c) of the Anti-Drug Abuse
Act of 1988 (21 U.S.C. 1504(c)).
(j) Effective Date.--This section and the amendments made
by this section shall take effect on the date of the
enactment of this Act.
Subtitle C--Limitations Relating to Occupancy in Federally Assisted
Housing
SEC. 1641. SCREENING OF APPLICANTS.
(a) Ineligibility Because of Eviction.--Any household or
member of a household evicted from federally assisted housing
(as such term is defined in section 1645) shall not be
eligible for federally assisted housing--
(1) in the case of eviction by reason of drug-related
criminal activity, for a period of not less than 3 years that
begins on the date of such eviction, unless the evicted
member of the household successfully completes a
rehabilitation program; and
(2) in the case of an eviction for other serious violations
of the terms or conditions of the lease, for a reasonable
period of time, as determined by the public housing agency or
owner of the federally assisted housing, as applicable.
The requirements of paragraphs (1) and (2) may be waived if
the circumstances leading to eviction no longer exist.
(b) Ineligibility of Illegal Drug Users and Alcohol
Users.--
(1) In general.--Notwithstanding any other provision of
law, a public housing agency or an owner of federally
assisted housing, or both, as determined by the Secretary,
shall establish standards that prohibit admission to the
program or admission to federally assisted housing for any
household with a member--
(A) who the public housing agency or owner determines is
engaging in the illegal use of a controlled substance; or
(B) with respect to whom the public housing agency or owner
determines that it has reasonable cause to believe that such
household member's illegal use (or pattern of illegal use) of
a controlled substance, or abuse (or pattern of abuse) of
alcohol, would interfere with the health, safety, or right to
peaceful enjoyment of the premises by other residents.
(2) Consideration of rehabilitation.--In determining
whether, pursuant to paragraph (1)(B), to deny admission to
the program or to federally assisted housing to any household
based on a pattern of illegal use of a controlled substance
or a pattern of abuse of alcohol by a household member, a
public housing agency or an owner may consider whether such
household member--
(A) has successfully completed an accredited drug or
alcohol rehabilitation program (as applicable) and is no
longer engaging in the illegal use of a controlled substance
or abuse of alcohol (as applicable);
(B) has otherwise been rehabilitated successfully and is no
longer engaging in the illegal use of a controlled substance
or abuse of alcohol (as applicable); or
(C) is participating in an accredited drug or alcohol
rehabilitation program (as applicable) and is no longer
engaging in the illegal use of a controlled substance or
abuse of alcohol (as applicable).
(c) Ineligibility of Sexually Violent Predators For
Admission to Public Housing.--
[[Page H5811]]
(1) In general.--Notwithstanding any other provision of
law, a public housing agency shall prohibit admission to
public housing for any household that includes any individual
who is a sexually violent predator.
(2) Sexually violent predator.--For purposes of this
subsection, the term ``sexually violent predator'' means an
individual who--
(A) is a sexually violent predator (as such term is defined
in section 170101(a)(3) of such Act); and
(B) is subject to a registration requirement under section
170101(a)(1)(B) or 170102(c) of the Violent Crime Control and
Law Enforcement Act of 1994 (42 U.S.C. 14071(a)(1)(B),
14072(c)), as provided under section 170101(b)(6)(B) or
170102(d)(2), respectively, of such Act.
(d) Authority To Deny Admission to Criminal Offenders.--
Except as provided in subsections (a), (b), and (c) and in
addition to any other authority to screen applicants, in
selecting among applicants for admission to the program or to
federally assisted housing, if the public housing agency or
owner of such housing (as applicable) determines that an
applicant or any member of the applicant's household is or
was, during a reasonable time preceding the date when the
applicant household would otherwise be selected for
admission, engaged in any criminal activity (including drug-
related criminal activity), the public housing agency or
owner may--
(1) deny such applicant admission to the program or to
federally assisted housing;
(2) consider the applicant (for purposes of any waiting
list) as not having applied for the program or such housing;
and
(3) after the expiration of the reasonable period beginning
upon such activity, require the applicant, as a condition of
admission to the program or to federally assisted housing, to
submit to the public housing agency or owner evidence
sufficient (as the Secretary shall by regulation provide) to
ensure that the individual or individuals in the applicant's
household who engaged in criminal activity for which denial
was made under paragraph (1) have not engaged in any criminal
activity during such reasonable period.
(e) Authority To Require Access to Criminal Records.--A
public housing agency and an owner of federally assisted
housing may require, as a condition of providing admission to
the program or admission to or occupancy in federally
assisted housing, that each adult member of the household
provide a signed, written authorization for the public
housing agency to obtain the records described in section
1644(a) regarding such member of the household from the
National Crime Information Center, police departments, other
law enforcement agencies, and State registration agencies
referred to in such section. In the case of an owner of
federally assisted housing that is not a public housing
agency, the owner shall request the public housing agency
having jurisdiction over the area within which the housing is
located to obtain the records pursuant to section 1644.
(f) Admission Based on Disability.--
(1) In general.--Notwithstanding any other provision of
law, for purposes of determining eligibility for admission to
federally assisted housing, a person shall not be considered
to have a disability or a handicap solely because of the
prior or current illegal use of a controlled substance (as
defined in section 102 of the Controlled Substances Act) or
solely by reason of the prior or current use of alcohol.
(2) Continued occupancy.--This subsection may not be
construed to prohibit the continued occupancy of any person
who is a resident in assisted housing on the effective date
of this division.
SEC. 1642. TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL
DRUG USERS AND ALCOHOL ABUSERS.
Notwithstanding any other provision of law, a public
housing agency or an owner of federally assisted housing (as
applicable), shall establish standards or lease provisions
for continued assistance or occupancy in federally assisted
housing that allow the agency or owner (as applicable) to
terminate the tenancy or assistance for any household with a
member--
(1) who the public housing agency or owner determines is
engaging in the illegal use of a controlled substance; or
(2) whose illegal use of a controlled substance, or whose
abuse of alcohol, is determined by the public housing agency
or owner to interfere with the health, safety, or right to
peaceful enjoyment of the premises by other residents.
SEC. 1643. LEASE REQUIREMENTS.
In addition to any other applicable lease requirements,
each lease for a dwelling unit in federally assisted housing
shall provide that--
(1) the owner may not terminate the tenancy except for
violation of the terms or conditions of the lease, violation
of applicable Federal, State, or local law, or for other good
cause; and
(2) grounds for termination of tenancy shall include any
criminal or other activity, engaged in by the tenant, any
member of the tenant's household, any guest, or any other
person under the control of the household, that--
(A) threatens the health or safety of, or right to peaceful
enjoyment of the premises by, other tenant or employees of
the owner or other manager of the housing;
(B) threatens the health or safety of, or right to peaceful
enjoyment of their premises by, persons residing in the
immediate vicinity of the premises; or
(C) with respect only to activity engaged in by the tenant
or any member of the tenant's household, is criminal activity
on or off the premises.
SEC. 1644. AVAILABILITY OF CRIMINAL RECORDS FOR TENANT
SCREENING AND EVICTION.
(a) In General.--
(1) Criminal conviction information.--Notwithstanding any
other provision of law other than paragraphs (3) and (4),
upon the request of a public housing agency, the National
Crime Information Center, a police department, and any other
law enforcement agency shall provide to the public housing
agency information regarding the criminal conviction records
of an adult applicant for, or tenants of, federally assisted
housing for purposes of applicant screening, lease
enforcement, and eviction, but only if the public housing
agency requests such information and presents to such Center,
department, or agency a written authorization, signed by such
applicant, for the release of such information to the public
housing agency or other owner of the federally assisted
housing.
(2) Information regarding crimes against children and
sexually violent predators.--Notwithstanding any other
provision of law other than paragraphs (3) and (4), upon the
request of a public housing agency, the Federal Bureau of
Investigation, a State law enforcement agency designated as a
registration agency under a State registration program under
subtitle A of title XVII of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071), and any local law
enforcement agency authorized by the State agency shall
provide to a public housing agency the information collected
under the national database established pursuant to section
170102 of such Act or such State registration program, as
applicable, regarding an adult applicant for, or tenant of,
federally assisted housing for purposes of applicant
screening, lease enforcement, and eviction, but only if the
public housing agency requests such information and presents
to such State registration agency or other local law
enforcement agency a written authorization, signed by such
applicant, for the release of such information to the public
housing agency or other owner of the federally assisted
housing.
(3) Delayed effective date for owners other than pha's.--
The provisions of paragraphs (1) and (2) authorizing
obtaining information for owners of federally assisted
housing other than public housing agencies shall not take
effect before--
(A) the expiration of the 1-year period beginning on the
date of enactment of this Act; and
(B) the Secretary and the Attorney General of the United
States have determined that access to such information is
feasible for such owners and have provided for the terms of
release of such information to owners.
(4) Exception.--The information provided under paragraphs
(1), (2), and (3) shall include information regarding any
criminal conviction of a juvenile only to the extent that the
release of such information is authorized under the law of
the applicable State, tribe, or locality.
(b) Confidentiality.--A public housing agency or owner
receiving information under this section may use such
information only for the purposes provided in this section
and such information may not be disclosed to any person who
is not an officer, employee, or authorized representative of
the agency or owner and who has a job-related need to have
access to the information in connection with admission of
applicants, eviction of tenants, or termination of
assistance. For judicial eviction proceedings, disclosures
may be made to the extent necessary. The Secretary shall, by
regulation, establish procedures necessary to ensure that
information provided under this section to a public housing
agency or owner is used, and confidentiality of such
information is maintained, as required under this section.
(c) Opportunity to Dispute.--Before an adverse action is
taken with regard to assistance for federally assisted
housing on the basis of a criminal record (including on the
basis that an individual is a sexually violent predator,
pursuant to section 1641(c)), the public housing agency or
owner shall provide the tenant or applicant with a copy of
the criminal record and an opportunity to dispute the
accuracy and relevance of that record.
(d) Fee.--A public housing agency may be charged a
reasonable fee for information provided under subsection (a).
A public housing agency may require an owner of federally
assisted housing (that is not a public housing agency) to pay
such fee for any information that the agency acquires for the
owner pursuant to section 1641(e) and subsection (a) of this
section.
(e) Records Management.--Each public housing agency and
owner of federally assisted housing that receives criminal
record information pursuant to this section shall establish
and implement a system of records management that ensures
that any criminal record received by the agency or owner is--
(1) maintained confidentially;
(2) not misused or improperly disseminated; and
(3) destroyed in a timely fashion, once the purpose for
which the record was requested has been accomplished.
(f) Penalty.--Any person who knowingly and willfully
requests or obtains any information concerning an applicant
for, or tenant of, federally assisted housing pursuant to
[[Page H5812]]
the authority under this section under false pretenses, or
any person who knowingly and willfully discloses any such
information in any manner to any individual not entitled
under any law to receive it, shall be guilty of a misdemeanor
and fined not more than $5,000. The term ``person'' as used
in this subsection shall include an officer, employee, or
authorized representative of any public housing agency or
owner.
(g) Civil Action.--Any applicant for, or tenant of,
federally assisted housing affected by (1) a negligent or
knowing disclosure of information referred to in this section
about such person by an officer, employee, or authorized
representative of any public housing agency or owner of
federally assisted housing, which disclosure is not
authorized by this section, or (2) any other negligent or
knowing action that is inconsistent with this section, may
bring a civil action for damages and such other relief as may
be appropriate against any public housing agency or owner
responsible for such unauthorized action. The district court
of the United States in the district in which the affected
applicant or tenant resides, in which such unauthorized
action occurred, or in which the officer, employee, or
representative alleged to be responsible for any such
unauthorized action resides, shall have jurisdiction in such
matters. Appropriate relief that may be ordered by such
district courts shall include reasonable attorney's fees and
other litigation costs.
(h) Definition.--For purposes of this section, the term
``adult'' means a person who is 18 years of age or older, or
who has been convicted of a crime as an adult under any
Federal, State, or tribal law.
SEC. 1645. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) Federally assisted housing.--The term ``federally
assisted housing'' means a dwelling unit--
(A) in public housing (as such term is defined in section
1102);
(B) assisted with choice-based housing assistance under
title XIII;
(C) in housing that is provided project-based assistance
under section 8 of the United States Housing Act of 1937 (as
in effect before the effective date of the repeal under
section 1601(b) of this Act) or pursuant to section 1601(f)
of this Act, including new construction and substantial
rehabilitation projects;
(D) in housing that is assisted under section 202 of the
Housing Act of 1959 (as amended by section 801 of the
Cranston-Gonzalez National Affordable Housing Act);
(E) in housing that is assisted under section 202 of the
Housing Act of 1959, as such section existed before the
enactment of the Cranston-Gonzalez National Affordable
Housing Act;
(F) in housing that is assisted under section 811 of the
Cranston-Gonzalez National Affordable Housing Act;
(G) in housing financed by a loan or mortgage insured under
section 221(d)(3) of the National Housing Act that bears
interest at a rate determined under the proviso of section
221(d)(5) of such Act;
(H) in housing insured, assisted, or held by the Secretary
or a State or State agency under section 236 of the National
Housing Act;
(I) in housing assisted under section 515 of the Housing
Act of 1949.
(2) Owner.--The term ``owner'' means, with respect to
federally assisted housing, the entity or private person
(including a cooperative or public housing agency) that has
the legal right to lease or sublease dwelling units in such
housing.
TITLE XVII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS
SEC. 1701. RURAL HOUSING ASSISTANCE.
The last sentence of section 520 of the Housing Act of 1949
(42 U.S.C. 1490) is amended by inserting before the period
the following: ``, and the city of Altus, Oklahoma, shall be
considered a rural area for purposes of this title until the
receipt of data from the decennial census in the year 2000''.
SEC. 1702. TREATMENT OF OCCUPANCY STANDARDS.
The Secretary of Housing and Urban Development shall not
directly or indirectly establish a national occupancy
standard.
SEC. 1703. IMPLEMENTATION OF PLAN.
(a) Implementation.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Secretary shall implement the
Ida Barbour Revitalization Plan of the City of Portsmouth,
Virginia, in a manner consistent with existing limitations
under law.
(2) Waivers.--In carrying out paragraph (1), the Secretary
shall consider and make any waivers to existing regulations
and other requirements consistent with the plan described in
paragraph (1) to enable timely implementation of such plan,
except that generally applicable regulations and other
requirements governing the award of funding under programs
for which assistance is applied for in connection with such
plan shall apply.
(b) Report.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act and annually thereafter through the
year 2000, the city described in subsection (a)(1) shall
submit a report to the Secretary on progress in implementing
the plan described in that subsection.
(2) Contents.--Each report submitted under this subsection
shall include--
(A) quantifiable measures revealing the increase in
homeowners, employment, tax base, voucher allocation,
leverage ratio of funds, impact on and compliance with the
consolidated plan of the city;
(B) identification of regulatory and statutory obstacles
that--
(i) have caused or are causing unnecessary delays in the
successful implementation of the consolidated plan; or
(ii) are contributing to unnecessary costs associated with
the revitalization; and
(C) any other information that the Secretary considers to
be appropriate.
SEC. 1704. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.
(a) Home Investment Partnerships.--The Cranston-Gonzalez
National Affordable Housing Act is amended as follows:
(1) Definitions.--In section 104(10) (42 U.S.C.
12704(10))--
(A) by striking ``income ceilings higher or lower'' and
inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(2) Income targeting.--In section 214(1)(A) (42 U.S.C.
12744(1)(A))--
(A) by striking ``income ceilings higher or lower'' and
inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(3) Rent limits.--In section 215(a)(1)(A) (42 U.S.C.
12745(a)(1)(A))--
(A) by striking ``income ceilings higher or lower'' and
inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(b) CDBG.--Section 102(a)(20) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by
striking subparagraph (B) and inserting the following new
subparagraph:
``(B) The Secretary may--
``(i) with respect to any reference in subparagraph (A) to
50 percent of the median income of the area involved,
establish percentages of median income for any area that are
higher or lower than 50 percent if the Secretary finds such
variations to be necessary because of unusually high or low
family incomes in such area; and
``(ii) with respect to any reference in subparagraph (A) to
80 percent of the median income of the area involved,
establish a percentage of median income for any area that is
higher than 80 percent if the Secretary finds such variation
to be necessary because of unusually low family incomes in
such area.''.
SEC. 1705. PROHIBITION OF USE OF CDBG GRANTS FOR EMPLOYMENT
RELOCATION ACTIVITIES.
Section 105 of the Housing and Community Development Act of
1974 (42 U.S.C. 5305) is amended by adding at the end the
following new subsection:
``(h) Prohibition of Use of Assistance for Employment
Relocation Activities.--Notwithstanding any other provision
of law, no amount from a grant under section 106 made in
fiscal year 1997 or any succeeding fiscal year may be used
for any activity (including any infrastructure improvement)
that is intended, or is likely, to facilitate the relocation
or expansion of any industrial or commercial plant, facility,
or operation, from one area to another area, if the
relocation or expansion will result in a loss of employment
in the area from which the relocation or expansion occurs.''.
SEC. 1706. REGIONAL COOPERATION UNDER CDBG ECONOMIC
DEVELOPMENT INITIATIVE.
Section 108(q)(4) (42 U.S.C. 5308(q)(4)) of the Housing and
Community Development Act of 1974 is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(C);
(2) by redesignating subparagraph (D) as subparagraph (E);
and
(3) by inserting after subparagraph (C) the following:
``(D) when applicable as determined by the Secretary, the
extent of regional cooperation demonstrated by the proposed
plan; and''.
SEC. 1707. USE OF AMERICAN PRODUCTS.
(a) Purchase of American-Made Equipment and Products.--It
is the sense of the Congress that, to the greatest extent
practicable, all equipment and products purchased with funds
made available in this division should be American made.
(b) Notice Requirement.--In providing financial assistance
to, or entering into any contract with, any entity using
funds made available in this division, the head of each
Federal agency, to the greatest extent practicable, shall
provide to such entity a notice describing the statement made
in subsection (a) by the Congress.
SEC. 1708. CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF
LITIGATION.
In negotiating any settlement of, or consent decree for,
any litigation regarding public housing or rental assistance
(under title XIII of this Act or the United States Housing
Act of 1937, as in effect before the effective date of the
repeal under section 1601(b) of this Act) that involves the
Secretary and any public housing agency or any unit of
general local government, the Secretary shall consult with
any units of general local
[[Page H5813]]
government and public housing agencies having jurisdictions
that are adjacent to the jurisdiction of the public housing
agency involved.
SEC. 1709. TREATMENT OF PHA REPAYMENT AGREEMENT.
(a) Limitation on Secretary.--During the 2-year period
beginning on the date of the enactment of this Act, if the
Housing Authority of the City of Las Vegas, Nevada, is
otherwise in compliance with the Repayment Lien Agreement and
Repayment Plan approved by the Secretary on February 12,
1997, the Secretary of Housing and Urban Development shall
not take any action that has the effect of reducing the
inventory of senior citizen housing owned by such housing
authority that does not receive assistance from the
Department of Housing and Urban Development.
(b) Alternative Repayment Options.--During the period
referred to in subsection (a), the Secretary shall assist the
housing authority referred to in such subsection to identify
alternative repayment options to the plan referred to in such
subsection and to execute an amended repayment plan that will
not adversely affect the housing referred to in such
subsection.
(c) Rule of Construction.--This section may not be
construed to alter--
(1) any lien held by the Secretary pursuant to the
agreement referred to in subsection (a); or
(2) the obligation of the housing authority referred to in
subsection (a) to close all remaining items contained in the
Inspector General audits numbered 89 SF 1004 (issued January
20, 1989), 93 SF 1801 (issued October 30, 1993), and 96 SF
1002 (issued February 23, 1996).
SEC. 1710. USE OF ASSISTED HOUSING BY ALIENS.
Section 214 of the Housing and Community Development Act of
1980 (42 U.S.C. 1436a) is amended--
(1) in subsection (b)(2), by striking ``Secretary of
Housing and Urban Development'' and inserting ``applicable
Secretary'';
(2) in subsection (c)(1)(B), by moving clauses (ii) and
(iii) 2 ems to the left;
(3) in subsection (d)--
(A) in paragraph (1)(A)--
(i) by striking ``Secretary of Housing and Urban
Development'' and inserting ``applicable Secretary''; and
(ii) by striking ``the Secretary'' and inserting ``the
applicable Secretary'';
(B) in paragraph (2), in the matter following subparagraph
(B)--
(i) by inserting ``applicable'' before ``Secretary''; and
(ii) by moving such matter (as so amended by clause (i)) 2
ems to the right;
(C) in paragraph (4)(B)(ii), by inserting ``applicable''
before ``Secretary'';
(D) in paragraph (5), by striking ``the Secretary'' and
inserting ``the applicable Secretary''; and
(E) in paragraph (6), by inserting ``applicable'' before
``Secretary'';
(4) in subsection (h) (as added by section 576 of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (division C of Public Law 104-208))--
(A) in paragraph (1)--
(i) by striking ``Except in the case of an election under
paragraph (2)(A), no'' and inserting ``No'';
(ii) by striking ``this section'' and inserting
``subsection (d)''; and
(iii) by inserting ``applicable'' before ``Secretary''; and
(B) in paragraph (2)--
(i) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) may, notwithstanding paragraph (1) of this
subsection, elect not to affirmatively establish and verify
eligibility before providing financial assistance''; and
(ii) in subparagraph (B), by striking ``in complying with
this section'' and inserting ``in carrying out subsection
(d)''; and
(5) by redesignating subsection (h) (as amended by
paragraph (4)) as subsection (i).
SEC. 1711. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE
MORTGAGE PROGRAM.
(a) 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; such
restrictions shall include a requirement that the mortgagee
ask the mortgagor about any fees that the mortgagor has
incurred in connection with obtaining the mortgage and a
requirement that the mortgagee be responsible for ensuring
that the disclosures required by subsection (d)(2)(C) are
made.''.
(b) Implementation.--
(1) Notice.--The Secretary of Housing and Urban Development
shall, by interim notice, implement the amendments made by
subsection (a) 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
paragraph (2) of this subsection.
(2) 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 subsection (a). 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)(B) of such section).
SEC. 1712. CONVERSION OF SECTION 8 TENANT-BASED ASSISTANCE TO
PROJECT-BASED ASSISTANCE IN THE BOROUGH OF
TAMAQUA.
For the Tamaqua Highrise project in the Borough of Tamaqua,
Pennsylvania, the Secretary of Housing and Urban Development
may require the public housing agency to convert the tenant-
based assistance under section 8 of the United States Housing
Act of 1937 to project-based rental assistance under section
8(d)(2) of such Act, notwithstanding the requirement for
rehabilitation or the percentage limitations under section
8(d)(2). The tenant-based assistance covered by the preceding
sentance shall be the assistance for families who are
residing in the project on the date of enactment of this Act
and who initially received their assistance in connection
with the conversion of the section 23 leased housing contract
for the project to tenant-based assistance under section 8 of
such Act. The Secretary may not take action under this
section before the expiration of the 30-day period beginning
upon the submission of a report to the Congress regarding the
proposed action under this section.
SEC. 1713. HOUSING COUNSELING.
(a) Extension of Emergency Homeownership Counseling.--
Section 106(c)(9) of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701x(c)(9)) is amended by striking
``September 30, 1994'' and inserting ``September 30, 1999''.
(b) Extension of Prepurchase and Foreclosure Prevention
Counseling Demonstration.--Section 106(d)(13) of the Housing
and Urban Development Act of 1968 (12 U.S.C. 1701x(d)(12)) is
amended by striking ``fiscal year 1994'' and inserting
``fiscal year 1999''.
(c) Notification of Delinquency on Veterans Home Loans.--
Subparagraph (C) of section 106(c)(5) of the Housing and
Urban Development Act of 1968 is amended to read as follows:
``(C) Notification.--Notification under subparagraph (A)
shall not be required with respect to any loan for which the
eligible homeowner pays the amount overdue before the
expiration of the 45-day period under subparagraph
(B)(ii).''.
SEC. 1714. TRANSFER OF SURPLUS REAL PROPERTY FOR PROVIDING
HOUSING FOR LOW- AND MODERATE-INCOME FAMILIES.
(a) In General.--Notwithstanding any other provision of law
(including the Federal Property and Administrative Services
Act of 1949), the property known as 252 Seventh Avenue in New
York County, New York is authorized to be conveyed in its
existing condition under a public benefit discount to a non-
profit organization that has among its purposes providing
housing for low-income individuals or families provided, that
such property is determined by the Administrator of General
Services to be surplus to the needs of the Government and
provided it is determined by the Secretary of Housing and
Urban Development that such property will be used by such
non-profit organization to provide housing for low- and
moderate-income families or individuals.
(b)(1) Public Benefit Discount.--The amount of the public
benefit discount available under this section shall be 75
percent of the estimated fair market value of the property,
except that the Secretary may discount by a greater
percentage if the Secretary, in consultation with the
Administrator, determines that a higher percentage is
justified due to any benefit which will accrue to the United
States from the use of such property for the public purpose
of providing low- and moderate-income housing.
(2) Reverter.--The Administrator shall require that the
property be used for at least 30 years for the public purpose
for which it was originally conveyed, or such longer period
of time as the Administrator feels necessary, to protect the
Federal interest and to promote the public purpose. If this
condition is not met, the property shall revert to the United
States.
(3) Determination of Fair Market Value.--The Administrator
shall determine estimated fair market value in accordance
with Federal appraisal standards and procedures.
(4) Deposit of Proceeds.--The Administrator of General
Services shall deposit any proceeds received under this
subsection in the special account established pursuant to
section 204(h)(2) of the Federal Property and Administrative
Services Act of 1949.
(5) Additional Terms and Conditions.--The Administrator may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Administrator
considers appropriate to protect the interests of the United
States and to accomplish a public purpose.
[[Page H5814]]
SEC. 1715. EFFECTIVE DATE.
This title and the amendments made by this title shall take
effect on the date of the enactment of this Act.
Page 90, line 18 strike ``, and $70,000,000 is appropriated
to the National Science Foundation, `Research and related
activities'.'' and insert ``.''
Page 61, line 13, strike the colon and all that follows
through ``expenses'' on line 20.
The CHAIRMAN. Pursuant to House Resolution 501, the gentleman from
New York (Mr. Lazio) and a Member opposed each will control 20 minutes.
The Chair recognizes the gentleman from New York (Mr. Lazio).
Mr. LAZIO of New York. Mr. Chairman, I yield myself such time as I
may consume.
Mr. Chairman, I rise for purposes of offering an amendment to the VA,
HUD and Independent Agencies appropriations bill. This amendment would
add H.R. 2, the Housing Opportunity and Responsibility Act, which was
passed by this Congress last year on May 14, 1997, by a vote of 293 to
132 to the bill, with one minor modification to address any possible
scoring concerns.
Mr. Chairman, I yield such time as he may consume to the gentleman
from Iowa (Mr. Leach), the chairman of the Committee on Banking and
Financial Services, who I have enormous respect for and who is largely
responsible for us having gotten to the point we are right now.
Mr. LEACH. Mr. Chairman, I thank the gentleman for yielding me time.
Mr. Chairman, let me stress at this point that I think, while
awkward, this is particularly appropriate to add this bill to this
bill. Let me thank the distinguished gentleman from New York, who has
led the housing movement in the House so ably.
But in making this suggestion, let me make some clarification. The
distinguished ranking member of the committee, the gentleman from New
York, made some critical comments on process during prior debate on the
rule, and, to some degree, as chairman of the committee, let me suggest
that the gentleman is absolutely correct.
The regular order should have been a Committee on Banking and
Financial Services conference. For various reasons, this proved
difficult to institute. On the other hand, the present situation is not
quite the procedural umbrage that is hinted at, in that the bill before
us, unlike most authorizing parts of appropriations bills, has passed
the House, in fact by a large margin, and a conference can be expected
of authorizers in the context of an appropriations conference. What we
are thus simply doing is attaching legislation that has previously been
agreed to by the House to facilitate movement on that critical subject.
In this regard, public housing reform is clearly an important
national interest and national objective. Both those of liberal and
conservative perspectives have concluded that there are serious
problems in our present system that demand resolution. This is
precisely what the Committee on Banking and Financial Services has done
in a straightforward way in a bill that exceeds, and let me stress,
based on the statement of the last Member, exceeds the administration's
request in funding levels for housing. Indeed, the bill substantially
exceeds the administration's request for senior and disabled housing.
To the extent that politics is the art of the possible, the reason we
are proceeding in this fashion is simply to use a vehicle that has the
greatest chance of achieving consensus and support, both from the other
body as well as, hopefully, from the administration.
Included in this bill is authorization on an appropriation pushed by
the minority, an increase in FHA mortgage insurance limits as advocated
by the administration. The Committee on Banking and Financial Services
is willing, in the context of public housing reform, to consider this
change, even though it represents a modest increase in the
governmentalization of credit in the United States.
Finally, let me say that it has been represented to this Member that
in the background there are the concerns of some that, if adopted,
these reforms might be perceived as a success of this Congress, and,
therefore, opposed because some would oppose any institutional
successes.
I have spent the vast majority of my time in Congress in the
minority. I never paid heed to those who wanted to subvert good policy
for political reasons. I hope in the end the minority in this body and
in the administration will make a judgment based on the national
interests and not whether it will be perceived as something Congress
can take credit for.
The fact is, good governance implies that, more often than not,
administrations have initiatives that deserve serious consideration by
the Congress and, if meritorious, accepted; likewise, that initiatives
put forward by the Congress in a divided government deserve serious
consideration by the Executive Branch, and, if meritorious, accepted.
Finally, let me stress again that if this amendment is adopted it
would be the intention of the leadership to designate sub-conferees
from the authorizing committee of jurisdictions from both sides of the
aisle to resolve outstanding issues of public housing. I am optimistic
and hopeful that such can be done in short order and that this Congress
will do what is best for the American people and pass permanent public
housing reform.
The CHAIRMAN. Does any Member seek control of the time in opposition?
Mr. KENNEDY of Massachusetts. Mr. Chairman, I rise in opposition.
The CHAIRMAN. The gentleman from Massachusetts (Mr. Kennedy) is
recognized for 20 minutes.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 2\1/2\ minutes to
my good friend, the gentleman from New York (Mr. LaFalce), the ranking
member of the Committee on Banking and Financial Services.
(Mr. LaFALCE asked and was given permission to revise and extend his
remarks.)
Mr. LaFALCE. Mr. Chairman, why are we here today? The House already
passed H.R. 2. The Senate passed their public housing bill. We passed
ours in May, they passed theirs in September, and yet neither body has
appointed conferees.
There is no reason to attach this bill to an appropriations bill. Let
us go to the table. Let us go to conference. Why are we not going to
conference in the regular order? Why are there not conference
committees?
Because the Members on the majority side are afraid that the minority
on the House side will join forces with both the majority and minority
on the Senate side and overwhelmingly approve a bill that is not to
their personal, individual tastes. That is the reason and the only
reason. So now they try to use legislative extortion, attach it to
something they really need, attach it to the FHA, attach it to the
appropriations process. That is what they are attempting to do here.
Let nobody be fooled by it.
Let us now go to substance. I refer to a statement put out by the
Department of Housing and Urban Development yesterday, and I will
insert this, with a list of all those vulnerable people in America that
will be adversely affected by this on a state-by-state basis.
According to HUD, this particular amendment would raise the income
levels of people eligible for public housing. It would give greater
priority to people making as much as $40,000 to be admitted to public
housing, allowing them to gain housing before low income families.
Since no new public housing is being built and existing waiting lists
are years long, these lower income families will have no option
whatsoever.
I have always believed we should have a preferential option for the
poor. What this amendment does is eliminate any option. A total,
according to HUD, of 3 million low income people would be denied access
to public and federally assisted housing, including 1.8 million seniors
and children.
I want to quote Secretary of Housing Andrew Cuomo. He said,
The inclusion of this repugnant public housing bill in the
HUD appropriations bill violates the good faith and
cooperative efforts we have been working toward and is
tantamount to legislative extortion.
That is why, if this amendment passes, there will be a veto of this
bill.
Mr. Chairman, I include the following news release from the
Department of Housing and Urban Development for the Record.
America's Most Vulnerable List: 1.8 Million Poor Seniors and Children
Locked Out of Nation's Housing
Washington.--Today, the House is considering an amendment
to legislation (H.R. 4194) that would raise the income levels
of people eligible for public housing. This bill would give
greater priority to people making as much as $40,000 to be
admitted to public
[[Page H5815]]
housing, allowing them to gain housing before lower income
families. Since no new public housing is being built and
existing waiting lists are years long, these lower income
families will have no option whatsoever. A total of 3 million
low-income people would be denied access to public and
federally-assisted housing, including 1.8 million seniors and
children.
In response to this bill, Housing Secretary Andrew Cuomo
said:
``It is inexcusable that we would take the few units of
affordable housing this Congress has allowed to remain and
remove it from the grasp of the most vulnerable Americans.
This means no housing for America's most vulnerable. In an
apparent effort to ``mix income'' in public housing the House
bill would make 1.8 million seniors and children virtually
homeless. For them, the House bill would be the equivalent of
a housing death sentence: no housing for life.
``The Administration's position is an intelligent balance
which would allow mixed income in public housing and provide
for the most vulnerable with Section 8 vouchers for every
lower-income family displaced from the waiting list.
``The inclusion of this repugnant public housing bill in
the HUD appropriations bill violates the good faith and
cooperative efforts we have been working towards and is
tantamount to legislative extortion.''
AMERICA'S MOST VULNERABLE \1\ LIST
------------------------------------------------------------------------
Total Elderly
households individuals Children
------------------------------------------------------------------------
Alaska............................. 2,000 1,000 2,000
Alabama............................ 28,000 11,000 27,000
Arkansas........................... 17,000 7,000 15,000
Arizona............................ 11,000 5,000 11,000
California......................... 135,000 65,000 113,000
Colorado........................... 17,000 7,000 14,000
Connecticut........................ 26,000 13,000 20,000
District of Columbia............... 10,000 4,000 4,000
Delaware........................... 4,000 1,000 3,000
Florida............................ 58,000 29,000 51,000
Georgia............................ 41,000 15,000 40,000
Hawaii............................. 7,000 3,000 6,000
Iowa............................... 13,000 7,000 9,000
Idaho.............................. 4,000 1,000 3,000
Illinois........................... 67,000 35,000 51,000
Indiana............................ 31,000 14,000 26,000
Kansas............................. 11,000 6,000 7,000
Kentucky........................... 26,000 10,000 22,000
Louisiana.......................... 28,000 9,000 29,000
Massachusetts...................... 53,000 29,000 36,000
Maryland........................... 31,000 14,000 26,000
Maine.............................. 8,000 2,000 5,000
Michigan........................... 45,000 24,000 31,000
Minnesota.......................... 29,000 17,000 18,000
Missouri........................... 31,000 14,000 26,000
Mississippi........................ 16,000 6,000 17,000
Montana............................ 4,000 2,000 3,000
North Carolina..................... 39,000 14,000 37,000
North Dakota....................... 4,000 2,000 3,000
Nebraska........................... 9,000 5,000 7,000
New Hampshire...................... 6,000 4,000 3,000
New Jersey......................... 50,000 32,000 33,000
New Mexico......................... 8,000 2,000 8,000
Nevada............................. 5,000 2,000 5,000
New York........................... 164,000 83,000 99,000
Ohio............................... 68,000 29,000 56,000
Oklahoma........................... 17,000 6,000 16,000
Oregon............................. 14,000 6,000 11,000
Pennsylvania....................... 68,000 38,000 49,000
Rhode Island....................... 11,000 8,000 6,000
South Carolina..................... 19,000 6,000 20,000
South Dakota....................... 4,000 2,000 3,000
Tennessee.......................... 34,000 14,000 29,000
Texas.............................. 79,000 28,000 84,000
Utah............................... 5,000 2,000 4,000
Virginia........................... 32,000 12,000 30,000
Vermont............................ 3,000 2,000 2,000
Washington......................... 21,000 10,000 15,000
Wisconsin.......................... 24,000 15,000 15,000
West Virginia...................... 11,000 4,000 9,000
Wyoming............................ 2,000 1,000 1,000
------------------------------------
Total.......................... 1,450,000 679,000 1,160,000
------------------------------------------------------------------------
\1\ Extremely low income Households who could be skipped under H.R. 2
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 3 minutes to the
gentleman from Ohio (Mr. Stokes), the ranking member of the
subcommittee.
Mr. STOKES. Mr. Chairman, I thank the gentleman for yielding me this
time.
Mr. Chairman, I rise in opposition to this amendment.
First, I do not understand what legitimate purpose can possibly be
served by adding this measure to the VA-HUD appropriations bill. The
same bill has already been passed by the House and a companion bill has
been passed by the Senate. Obviously, what needs to happen next is
serious, good-faith negotiations leading to a conference report that
will pass the House and Senate and be signed into law by the President.
Bringing this bill up for a vote again in the House does nothing to
further this process. Absent serious negotiations and compromises, this
measure is not going to become law, no matter how many times it is
passed by the House.
{time} 1200
Both the House and Senate passed their versions of the bill over a
year ago, yet conferees have not even been appointed. I think the
Banking Committee majority would do far better to get a real conference
process underway, rather than offering this amendment.
I want to leave the details of this detail and the substance of this
proposal to my colleagues on the authorizing committee since our
appropriations subcommittee has never held any hearings on this
legislation. However, let me mention the most serious concern I had
about this version of the housing authorization bill when it passed the
House last year, a concern which has only grown stronger over time. In
short, the measure goes much too far in allowing scarce housing funds
to be diverted away from people who are most in need of assistance.
For example, the Lazio bill requires only 35 percent of newly vacant
housing units to go to families with incomes below 30 percent of area
medium income, a level as roughly equal to the poverty line in many
areas and a level earned by many families that are working at minimum
wages. I understand these targeting rules could divert up to 270,000
Federal housing subsidies per year away from poor families. With so
many unmet needs for housing, we need to ensure that a substantial part
of our scarce housing assistance dollars go to those with the greatest
need, and I urge defeat of this amendment.
Mr. LAZIO of New York. Mr. Chairman, I yield myself 4 minutes.
Mr. Chairman, we have largely stated our case earlier in debate on
the rule which passed. This is a bill that has been fully vetted over 3
years. This is a bill that has twice seen consideration, not just in
committee, but on the floor of the House.
Just last May, as I mentioned earlier, this bill passed with over 293
Members of the House voting in favor of it, including one-third of the
Democratic conference. Mr. Chairman, 71 Democrats supported making
these essential changes to a failed public housing system.
I do not understand, Mr. Chairman, for many folks that did not create
this system of failure, why they feel the need to defend it. Who can be
against individual choice, empowerment, more local control? But to urge
defeat of this amendment is to do just that.
This is a bill that stands for the individual, stands for individual
choice, allows individuals who receive rental vouchers to achieve
homeownership, which we say is the American dream. Let us stand for it.
Let us not be hypocritical. We say we are for local control; we say the
communities and neighborhoods should be able to control their own
destiny. Let us do it. This bill does it.
We say we are for safer streets, for healthier housing, for better
education. Let us give poor people the tools to achieve those things by
giving them vouchers, by allowing them to achieve homeownership, by
allowing them to build up equity in a home, by permitting them to start
businesses.
On the other side we have an argument for the defense of the status
quo, for the defense of a system that concentrates poverty, that drives
out the working poor, that undermines schools, that drives out the
businesses that keep working folks in areas.
Under the system that is supported by the administration and by the
Kennedy amendment, for example, in terms of vouchers, in the
overwhelming majority of areas throughout the country, over 80 percent
of the areas, and I will get into this later, for a mother and father
who both have work and have minimum wage jobs, they have no chance of
getting a voucher. Now, what is the statement that we provide here?
What statement are we making?
We are saying that if one works, one loses. If one gets married, one
loses. If one takes the chance of taking an entry-level position and
moving into the culture of work and socializing in that direction, one
loses; one will not get access to a rental voucher. But if one does not
work, one will get the help.
We are saying with this bill, give communities more control. We are
not saying how many poor people they can have. They can have, if a
community desires, this bill allows absolute flexibility for local
communities to target all of its resources on the very poor. But we are
also saying, do not shut out folks who are trying to move up the
economic ladder. Do not shut out folks who are getting an entry-level
position. Do not tell folks they have to get a divorce to qualify for a
voucher. Do not tell folks that if they get a rental unit through HUD,
that because of the so-called Brooke amendment, that the minute that
they work overtime or get married, or get a better job, or go to work,
that their rent goes up by another 30 percent. That is the disincentive
that we have built into the system that punishes work and punishes
families.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield myself 4 minutes.
[[Page H5816]]
Mr. Chairman, there are some pretty good aspects of being an United
States Congressman, one of which is that every once in a while one gets
to bring an amendment on the House floor, and one actually gets to win
it. I want to congratulate the chairman of the housing committee, Mr.
Lazio, on the fact that he has won this amendment, and he won it pretty
big. That is terrific.
But one would think at some point one would want to be able to go
beyond winning an amendment to actually being able to enact law, and
one would think that at some point, the pride that one would have in
being the chairman of a committee would drive one towards trying to
find a way to actually see what one has tried to accomplish become law.
This is not an attempt to create law; this is an attempt to have a
press conference. That is all this is about. This is not going before
the House and Senate and calling for a conference to create compromise
with the administration about new direction for housing policy. We have
not had a new housing bill in this Congress since 1992, because people
are not willing to compromise.
Now, there is a very simple, easy process. What happens is, the House
passes a bill, the Senate passes a bill, and we go to conference. The
House passed a bill 9 months ago. The Senate passed a bill 10 months
ago. We have yet to go to conference, because the Republicans have been
fighting amongst themselves.
Finally, 2 or 3 weeks ago my staff gets a call and says, we would
like you to come and discuss the housing bill. We go to the discussion,
not a conference, to the discussion. We begin good faith negotiations.
Secretary Cuomo from HUD participates in these negotiations. And yet,
lo and behold, yesterday morning I get a call from the Committee on
Rules saying that, oh, no, we are not going to go with the compromise
that we are all trying to work out in these back-room negotiations, not
a conference, but we are going to go back to the original House bill,
which we are going to attach without any hearings in the appropriations
process, as the gentleman from Ohio, Mr. Stokes has pointed out, and we
are going to attach the initial House-passed bill to the appropriations
bill and try to jam it down the throat of the administration, try to
jam it down the throat of the American people, in a way that is
completely abusive to the basic fundamental process of how things work
around here.
I cannot believe the chairman of the Subcommittee on VA, HUD and
Independent Agencies of the Committee on Appropriations, the gentleman
from California (Mr. Lewis), would allow such a process to fully take
place and to circumvent the basic fundamental rules of the road about
how legislation gets passed, and I doubt very much that he will allow
that to occur in the end.
I would hope that we will reach compromise. I do not think that it is
right that we say to the poorest people, and yet, maybe a lot of this
country is not eligible for these public housing programs. Do we know
why? Because we do not put enough money into public housing programs.
So we are forced with decisions, decisions about whether or not to
take care of the very, very poor, the people who are on the edge of
homelessness, or whether or not to take care of people who earn $30,000
or $40,000 a year. I will tell my colleagues something. If one earns
$30,000 or $40,000 a year, there are all sorts of banks, Fannie Mae and
Freddie Mac that can get one into homeownership. If we are going to
provide direct tax subsidies to the poor people of this country, let us
at least try to target those subsidies to the people that need them the
most. Is that such an outrageous proposal or outrageous moral thought
that we are going to try to make sure that the poorest of the poor are
served? That is the Democratic position.
So maybe somebody says, well, listen, I think a few more less-poor
people ought to be served. That is a compromise. We are willing to work
that out. That is not the worst idea in the world, but let us go to a
conference and try to come up with a compromise. Let us not try to say,
so, listen, we are totally, morally right, everybody else is wrong, and
we are going to find a way to jam it down your throat. That is what
this is.
Let us defeat this Leach amendment and stand up for the poor of this
country.
Mr. LAZIO of New York. Mr. Chairman, I yield 2 minutes to the
gentleman from Ohio (Mr. Boehner), the distinguished conference
chairman.
(Mr. BOEHNER asked and was given permission to revise and extend his
remarks.)
Mr. BOEHNER. Mr. Chairman, 2 years ago, Congress delivered real
welfare reform legislation for the first time in our Nation's history.
Today those reforms are moving people from welfare to work in
unprecedented numbers, reducing caseloads by 75 percent in some States.
In my own county in Ohio, Butler County, we have reduced taxpayer costs
for welfare 50 percent in 1 year alone. Today we are set to build on
that success by taking the next step in welfare reform by passing
legislation that transforms public housing from a way of life into a
better life for low-income American families.
The amendment offered by the gentleman from Iowa (Mr. Leach) and the
gentleman from New York (Mr. Lazio) truly represents a new era in
Federal housing policy. America's Federal housing framework has been
essentially unchanged since 1937, when Washington adopted the United
States Housing Act, the basis for all Federal housing programs.
The structure has remained relatively unchanged and in place for more
than two generations. Unfortunately, it is not one of those things that
gets better with age. It is time we acted responsibly to bring our
Nation's housing laws into the 21st century.
The amendment before us would replace our Nation's Depression-era
housing laws with a new structure that empowers people, not government.
It expands homeownership opportunities and gives residents a say in
planning and management decisions that affect their quality of life.
It reflects our strong belief that families deserve the opportunity
to become homeowners and to make more decisions about where they live
and, more importantly even, how they live.
Current Federal housing policy results in warehousing of poor people.
Decades of well-intentioned but flawed Washington policies have built a
cold Federal wall between working Americans and our lowest-income
Americans. It is, frankly, a national outrage.
The measure that we have before us today helps put an end to this
practice by providing broad flexibility. I urge my colleagues to vote
in favor of this amendment.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 2 minutes to my
good friend, the gentlewoman from California (Ms. Waters).
(Ms. WATERS asked and was given permission to revise and extend her
remarks.)
Ms. WATERS. Mr. Chairman, I must rise today and voice my very strong
opposition to this amendment. It is outrageous that this authorizing
bill would be considered as part of this appropriations bill.
Democrats and Republicans in both the House and the Senate have been
working to come to agreement on public housing legislation. To use this
last-minute maneuver to undercut this process is the worst form of
lawmaking.
As a member of the Committee on Banking and Financial Services that
considered this legislation, I know the significance of this bill for
millions of low-income persons that live in public housing across this
country. The amendment includes provisions that will undermine the
basic mission of public housing, the provision of decent, safe and
affordable housing for those who would not otherwise be able to secure
it.
The income-targeting provision will mean that 709,000 poor families
over the next 10 years will not have access to public housing and the
Section 8 certificate program. In an effort to diversify the income mix
of public housing, we cannot allow a wholesale abdication of our
responsibility to the poor. Provisions that would turn over control of
the Federal public housing dollars to local municipalities would
jeopardize the welfare of poor families.
The requirement that residents of poor public housing work as a
condition of residency is another of the punitive provisions of this
legislation. Why do we feel that we can impose this requirement on poor
people when we do
[[Page H5817]]
not impose the same kind of requirement on other beneficiaries of
Federal support?
For these reasons, I urge a no vote on this amendment.
Let me just say, I am really surprised that my chairman, the
gentleman from Iowa (Mr. Leach), would support this. He has a
reputation for being fair. He has a reputation for respecting the
legislative process. This is legislating on an appropriation. I would
ask my colleagues to vote against this amendment
The CHAIRMAN. The Chair would advise the gentleman from New York (Mr.
Lazio) and the gentleman from Massachusetts (Mr. Kennedy) that each
side has 9 minutes remaining.
Mr. LAZIO of New York. Mr. Chairman, I yield 2 minutes to the
distinguished gentleman from Louisiana (Mr. Baker), a member of the
Committee on Banking and Financial Services.
(Mr. BAKER asked and was given permission to revise and extend his
remarks.)
{time} 1215
Mr. BAKER. Mr. Chairman, this debate has been rather unclear,
unfortunately. I think one must first look at the condition of public
housing in this Nation today to understand what we are really about
with this amendment.
Unfortunately, many of our public housing facilities are crime-
ridden, filled with single moms with kids, without role models of dads
going to work. What we know for a certainty is what we have is simply
not working.
Should we come here and take taxpayer money and pour more and more
and more into proven failure, or should we try perhaps to do something
slightly different?
What Mr. Lazio is proposing with this amendment is really very
simple, to encourage people to go get a job and work, so if dad is
working and mom wants to get the second job in the family or dad wants
to take two jobs, not to tell mom or dad, if you go out and earn more,
we are going to take more in rent. If mom goes to work, she has to have
child care. She has to have transportation. She has to pay the increase
in rent under the current rules. When she sits down and does the math,
she has got to be crazy to go out and work 40 hours a week for a net of
$25 or $50 dollar gain.
We are encouraging people not to try with the current system. The end
result is not just taking away a person's ability to earn money. We are
taking away their hope, their hope that life for their kids and their
family can be better tomorrow if they simply try harder.
I do believe that if we give this one option a chance, we will be
giving more than taxpayers a good return for their investment. We will
be giving the working poor of this country an opportunity move up the
ladder and not be warehoused like they have been for the past 40 years
in deteriorating conditions with no opportunity to improve their lot in
life.
This is serious legislation which desperately needs to be adopted.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield myself 10 seconds
to respond to the gentleman from Louisiana to point out that, in the
compromise we were working out, almost every provision that he just
articulated had been accepted by the minority provision.
Mr. Chairman, I yield 2 minutes to the gentleman from Minnesota (Mr.
Vento).
Mr. VENTO. Mr. Chairman, I rise in opposition to this. This is wrong
on process.
The reason that we are taking this particular tack is that this bill
cannot make it on its merits through the entire process. So what we are
trying to do is, what is going on here is we have a must-pass funding
bill, and we are trying to superimpose this particular policy change.
This is no small policy change. What this really represents to me is,
it represents our Nation giving up on trying to help house the poor.
That is what this really represents. We are dumping this back on the
local governments. That is what is going on. We are giving up. That is
what is going on here. That is why everyone is so concerned about it,
because the local governments, when we talk about the problems with
public housing, are where the problems are.
I come from the number one public housing authority in the Nation,
St. Paul, Minnesota. We stole Minneapolis's director. Otherwise, they
might have it. Public housing works in my area. Our housing is not
without problems, but where we have problems, they usually occur in
some of the private multifamily housing.
One of the big problems, we just have too big buildings in most
instances. We did the wrong thing. We did not provide the resources. We
are providing less and less. Is it any wonder that there is a problem?
This is wrong in terms of, in other words, taking the low income
people, we have more of them, as we know. We have got this great
disparity going on in terms of the best times of our economy. Many
people have a lot more income and a lot have a lot less income, even
though both parents or single parent families are all working. It tries
to put the veneer of welfare reform over this. They are part of welfare
reform.
A part of welfare reform is to fund the vouchers amendment that the
gentleman from Ohio (Mr. Stokes) and the gentleman from Massachusetts
(Mr. Kennedy) offered. That is welfare reform. We do not need a
duplicate welfare system superimposed on the one that we passed. I
voted for it. I wanted it to work. Let us fund it. Let us quit creating
more promises.
All this is is a paper promise in term of welfare reform. That is
what is wrong with this place. We get one good idea going, then we have
to have three things similar and nothing gets funded.
Let us fund it. Let us vote up the Kennedy-Stokes amendment.
Mr. LAZIO of New York. Mr. Chairman, I yield 2 minutes to the
gentlewoman from New York (Mrs. Kelly), a member of the Committee on
Banking and Financial Services.
Mrs. KELLY. Mr. Chairman, I rise today to call on all of my
colleagues from both sides of the aisle to join me in strong support
for the Leach-Lazio amendment to add H.R. 2, the Housing Opportunity
and Responsibility Act of 1997, to the VA-HUD appropriations bill.
I would like to thank the gentleman from New York (Mr. Lazio) and all
of the members of the House Committee on Banking and Financial Services
for their hard work on H.R. 2, which we passed with a bipartisan vote
last year. H.R. 2 is a piece of well-thought-out, comprehensive
legislation that will make a real difference in public housing in
America.
We have based this legislation on simple goals that will move our
public housing programs in a strong new direction to empower the
residents. The goals are, one, personal responsibility that extends to
a mutual obligation between the provider and the recipient. One of the
ways we accomplish this is through 8 hours a month work requirements
for residents, exempting the elderly, the disabled, the employed, those
who are in school or are receiving training, and those who are already
involved in a welfare program.
Two, retention of protections for residents. One way this is
accomplished is through the exclusion of income for the first few
months of a new job and the income of minors from the determination of
a resident's income level.
Another thing I would hope this bill would accomplish is improving
thoughtful consideration of others for those who live in public
housing. For instance, I have heard that some of the residents in one
public housing building in my district butchered a cow in their
bathtub. No one should have to live with neighbors who care so little
for their other neighbors that they would do this, let alone the poor
cow.
Number three, removal of disincentives to work and empowerment of the
individual and family tenant through choices that I believe will lead
them to economic independence. One of the ways we do this is by giving
residents a choice between a flat rent or a percentage of their income.
I would like to emphasize that everyone has the same shared
objective: clean, safe, affordable housing that empowers the have-nots
in our society to become people who can realize their own American
dream.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from North Carolina (Mr. Watt).
Mr. WATT of North Carolina. Mr. Chairman, I obviously object to the
[[Page H5818]]
process that is being followed, but there is something that is behind
that process that I object to that I want to call our attention to.
We had a debate about it on this floor. This bill allows housing
authorities to evict tenants for failure to perform community service.
That is unprecedented. Think of it, we give veterans benefits. We give
all kinds of benefits, even welfare benefits. We provide to people, we
might require them to work but at least we pay them.
This is a provision that says, we are going to evict you from public
housing unless you perform free community service, no guidelines for
it, no question about whether you are an employee. What happens if you
get hurt out there doing this stuff? Nothing about guidelines under
this provision. We debated this ad infinitum. Here it comes back again
on an appropriations bill. Put it on an appropriations bill, maybe we
can sneak it through and it will be all right.
This is unprecedented. It should not be in an appropriations bill.
There ought to be discussions about it back and forth between the
committees of jurisdiction in the House and Senate, and we ought to
refine it. We ought not just put a provision out there that has no
guidelines about it. This is unforgivable. It is out of the process. We
should not allow it to happen in this body. Processwise or contentwise,
it is unforgivable. We should vote against this amendment.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentlewoman in from New York (Ms. Velazquez), who probably has more
public housing in her district than any other Member of Congress.
Ms. VELAZQUEZ. Mr. Chairman, I rise in opposition to this amendment,
and I just would like to say that the process in which this legislation
has been brought to the floor is a sham and you should be ashamed of
yourselves.
At a time when America's economy is the strongest in generations, it
is disturbing that some in this Chamber continue the war on the poor.
Yet, once again, we are being asked to vote on an attack on our
national commitment to public housing and our neediest families.
America has the distinction of being one of the wealthiest countries
in the world. Yet just last month HUD reported that more than 5 million
poor families living in the worst housing are not being helped. Instead
of helping these families become self-sufficient, the Lazio amendment
pushes them deeper into poverty. I urge anyone with compassion to vote
no. If we are going to reform public housing, it must be fair and
reasonable. Safe, affordable housing must remain available to those in
need.
We must provide real economic opportunities, not community service,
so that public housing can help families become self-sufficient.
My colleagues, public housing has been a right, not just a privilege,
for 60 years. Vote no on this legislation.
Mr. LAZIO of New York. Mr. Chairman, I yield 2 minutes to the
distinguished gentleman from Delaware (Mr. Castle), former governor,
member of the Committee on Banking and Financial Services, chairman of
the Subcommittee on Domestic and International Monetary Policy.
Mr. CASTLE. Mr. Chairman, I do rise in support of this amendment and
of this program in general. I have given a lot of thought to this. I
would like to discuss sort of the indomitability of the human spirit. I
will be the first to say, who knows who is right or wrong in this
argument? It has been called the war on the poor. I look at it as an
opportunity for the poor, and I do go back to the welfare reform
legislation.
A lot of the same arguments were made when we discussed welfare
reform, that this was going to be a disaster for the poor. It was going
to be a failure. I am not here today to say it is an absolute success,
but clearly the welfare rolls are down. More importantly is what I have
seen personally. What I have seen personally in Delaware are people who
have been afforded an opportunity that they never had before.
I have been to the classes, I have seen the individuals who are now
working, who have a sense of taking care of themselves and their
families, and it has worked extraordinarily well.
I have done the same thing in housing. I have been in Wilmington,
Delaware, in our public housing, and I have been in Rehoboth Beach. We
do have public housing there in Delaware, and I have seen what they
have done there. Indeed, they have a community service program, exactly
the same as we are talking about in this particular piece of
legislation, and it has worked. People are helping each other.
I have seen in Dover, Delaware, the recognition that we have one of
the best housing authorities in the country; and they have encouraged
people to become involved with their community and do many of the
things that we are talking about here.
I do not think it is a wholesale selling out of people in poverty. I
think, indeed, it is affording them an opportunity to live in a better
housing situation. Who can really defend the housing circumstance we
have today which, by the way, goes back to 1937 in terms of what has
happened, and not say that we need change?
We came together some time ago, about two-thirds of us voted for
legislation to make housing better in America. Indeed, it has not gone
forward the way I would like to see it go forward. We can question the
process. We always seem to question the process. But the bottom line
is, it seems to me that today is an opportunity to give this
legislation, which I think is so well founded, an opportunity to move
forward.
My judgment is, we should do this. I think it is in our best
interest, and I encourage all Members to support it.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from Illinois (Mr. Jackson).
(Mr. JACKSON of Illinois asked and was given permission to revise and
extend his remarks.)
Mr. JACKSON of Illinois. Mr. Chairman, I rise in opposition to this
amendment.
The chairman argues that no one can be against local flexibility and
control. The reason for the 1937 housing law was because local
communities were not addressing the scope of the housing dilemma in
this country.
H.R. 2 is a very unique bill. Franklin Delano Roosevelt, in 1937,
looked at housing law and treated it as a human right. H.R. 2 treats
housing as a privilege in exchange for community work.
{time} 1230
The problem with this bill is it treats poor people differently than
others. There is no mandate of community work for homeowners who have a
mortgage tax deduction, who receive farm subsidies, food stamps, Social
Security, Medicare, Medicaid, LIHEAP, corporate welfare, Fannie Mae, or
loan guarantees. No, not since the Civil War have we imposed upon a
group of Americans that in exchange for their Federal benefit they must
volunteer without compensation.
What is the government doing making a law about volunteerism? The
government of the United States is under no obligation to force its
citizens, in exchange for their Federal benefits, to volunteer.
Mandating volunteerism is an oxymoron, and we should vote against this
bill because it is simply wrong.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentlewoman from Michigan (Ms. Carolyn Kilpatrick), a new and very
active member of the committee.
(Ms. KILPATRICK asked and was given permission to revise and extend
her remarks.)
Ms. KILPATRICK. Mr. Chairman, I thank the ranking member for yielding
to me, and I wish to say to him that we appreciate his leadership in
the committee and we are going to miss him.
What will we do with regard to public housing in this country;
shelter for the poorest? It is unfortunate that this Congress is taking
a step backwards. Not a single line in this amendment will provide
funding for new housing for the poorest of Americans. There is not a
single line in this legislation that will provide for demolition of
unsafe housing in this legislation. What it will do, though, is to put
more than 3 million people, the poorest of Americans, into the streets
and into homelessness.
Someone mentioned earlier, is it really working? Should we have a new
program? Yes, we should have a new program. But what has happened with
public housing is under the 12 years of
[[Page H5819]]
a Republican Presidency in this country there was a disinvestment in
public housing. And over the last 10 years in this country over 600
tons of drugs have come into America and, at the same time, our people
have not been employed.
Can we fix it? Yes, we can. Vote ``no'' on this amendment.
Mr. LAZIO of New York. Mr. Chairman, I yield 1 minute to the
gentleman from Maryland (Mr. Gilchrest).
Mr. GILCHREST. Mr. Chairman, I thank the gentleman for yielding me
this time.
There are some good public housing projects that work well and there
are some bad public housing projects that work terrible. What is the
difference under the present regime? It is good management. It is not
the people that live there that cause the problems of crime or drugs or
rundown buildings. It is 100 percent of the responsibility of the
management.
If we have good management, we will have a good public housing
project. If there is poor management, there will be rundown buildings,
crime-ridden streets and people that live in despair and hopelessness.
Accountability goes a long way, almost the whole way, in providing
service, housing, safe housing, for people.
What is the mystery of human initiative? Responsibility and dignity.
The amendment the gentleman from New York (Mr. Lazio) offers us today
provides a better opportunity and better quality housing than anything
we have done up to this point. I urge my colleagues to vote for the
amendment.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentlewoman from Florida (Mrs. Carrie Meek).
(Mrs. MEEK of Florida asked and was given permission to revise and
extend her remarks.)
Mrs. MEEK of Florida. Mr. Chairman, I am happy to say I was one of
the Members of the House that voted against H.R. 2 when it came up last
year. Now it is back again and it is time for us to give it a very
timely demise this time.
There are many reasons why we should. Number one, it deletes the
amount of assistance that can be given to public housing. Now, many of
my colleagues do not really understand what public housing is all
about, but I live in those communities, I serve those constituents, and
when one job is offered in that community, 500 people line up for that
one job hoping that they get that one job that will get them into
housing. That does not happen. Most of them are poor.
The poor people need housing. They need it. They need help from the
Federal Government. They do not need a block grant that comes down.
They do not need local housing authorities that have been demeaned in
such a way that we have taken away their power. So it weakens local
government.
We do not need this amendment. We do not need it on this good VA-HUD
bill, and I urge my colleagues to vote against H.R. 2.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from Illinois (Mr. Davis).
(Mr. DAVIS of Illinois asked and was given permission to revise and
extend his remarks.)
Mr. DAVIS of Illinois. Mr. Chairman, here we are again, same old
wine, new bottle; same lemon, new twist; same target, new weapon; same
poor people of America being attacked again, taking away opportunities
for the very poor to their demise.
What people really want and need in public housing are jobs and the
opportunity to work. If we give them jobs, they do not need to
volunteer. Five thousand families in Chicago working; 108 new
businesses; $52 million generated last year; 2,000 in a program. Give
them jobs. They do not need to volunteer.
Same wrong premise, same conclusion, we need to teach people in
public housing the value of work. Wrong premise, wrong conclusion.
Let's further attack the poor. For some irrational and incoherent
reason there seems to be serious preoccupation with fostering attacks
upon the poor, the disadvantaged, the unemployed, the disavowed and the
disconnected.
Those citizens who receive a form of public subsidy and live in
public housing are continually being harassed. Sounds logical, sounds
rational, sounds corrective; but in actuality it is discriminatory,
oppressive and regressive. It is tantamount to slavery or at the very
lease, involuntary servitude.
Let's look at what is being proposed, let's take a hard look at what
we are being asked to do. Of all the subsidies which are given out in
this country, farmers, developers, manufacturers, private colleges and
universities, other institutionally based activities and corporations,
ranches--big business programs, we are being asked to single out public
housing recipients and say that you must, if you live in public
housing, volunteer some services as recognition of the public largesse
of which you have become the beneficiary. If this is the case, then
those who receive the 150 billion dollars in corporate welfare should
be providing some serious volunteer services. H.R. 2 demands public
service from public housing residents. But let's also demand public
services from those receiving corporate welfare. We've been down this
road before, I voted against the Housing Opportunity and Responsibility
Act then and I shall vote against it now. H.R. 2 targets an inadequate
number of housing units for people with the least financial means and
unfairly imposes duties on public housing residents that other
Americans do not have to perform. I believe that we should not endeavor
to create zones and pockets of poverty within our society and that
public housing sites should consist of residents who have diverse and
mixed income levels. However, we must not set our target income level
quotas in a manner that does not sufficiently accommodate the needs of
those who can least afford housing in the private market.
Moreover, in light of cuts in welfare benefits and social security
payments to beneficiaries, it is imperative that the rent payments
required of public housing residents be reduced in a manner that
reflects this loss of income.
H.R. 2 requires that public housing residents, who are not on welfare
or working must perform eight hours of community service. While I
believe in community service, I do not believe that residents should be
evicted, as this provision would permit, for failing to perform a job
for which they are uncompensated, volunteerism simply cannot be
compelled. Moreover, no other individuals or groups must volunteer
because they receive a subsidy from the government. Current law targets
75-85% of housing units for those with income at 50% of median, while
H.R. 2 targets only 35% of units for those at 30% of median income,
with the remainder being allocable to those making no more than 80% of
median income. This will push a lot of low-income families into
homelessness.
In Chicago, there is a viable work program for residents of the
Chicago housing authority.
1. Approximately 5000 families participate in the Resident Employment
Program.
2. There are approximately 108 resident owned businesses.
3. Resident owned business grossed approximately $52 million in
business last year.
4. Resident owned businesses employ approximately 2000 people and
resident owned businesses include:
1. Custodial Services
2. Landscaping Services
3. Childcare Services
4. Laundry Services
5. Extermination Services
People in public housing need and want jobs. When we provide the
opportunities, they will do the work.
Mr. LAZIO of New York. Mr. Chairman, I yield 1 minute to the
gentleman from Connecticut (Mr. Shays).
Mr. SHAYS. Mr. Chairman, in my capacity as chairman of the
Subcommittee on Human Resources of the Committee on Government Reform
and Oversight I oversee HUD, and I believe strongly in what the Lazio
amendment does. It removes us from a caretaking society to a caring
society where we give people back control of their lives.
Welfare reform must work. It is going to work if we provide better
job training, better child care, transportation to work, and better
housing. This bill will give us better housing because it will give
people control of their own housing conditions.
Mr. KENNEDY of Massachusetts. Mr. Chairman, I yield myself the
balance of my time.
Mr. Chairman, once again, let us just get back to the basics about
what this bill is about and what it is not about. This bill is not
about the substance of what is contained in H.R. 2. This bill is about
the fact that there was a compromise situation between the House, the
Senate, and the administration that was on the table and being
negotiated. Rather than allowing that process to take place, there was
a jump that was taken, a jump by the chairman of the Subcommittee on
Housing and Community Opportunity of the Committee on Banking and
Financial Services, who jumped into the Committee on Rules and created
a situation which forced the chairman of the Committee on
Appropriations to accept
[[Page H5820]]
this bill, which he does not like, he does not support; which I do not
like, I do not support; and which the gentleman from Ohio (Mr. Stokes)
does not like and does not support.
There are provisions that are good in this bill, make no mistake
about it. But there are provisions that are bad. It needs compromise.
If we are not going to turn our back on the poorest of the poor, then
we have got to find a way of creating a ramp which does not turn our
back and create homelessness. This bill will create homelessness. It is
not just about opportunity, it is about the abusive process that the
chairman of the committee brought upon us. We should vote against the
Lazio amendment.
Mr. LAZIO of New York. Mr. Chairman, I yield myself such time as I
may consume.
Mr. Chairman, let us get the job done. All we have heard are
arguments about process and rules. Let us get the job done. That
argument about process does not help one person save themselves. It
does not help one family. It does not help one community.
We have debated this bill for 3 years. We have twice passed this on
the floor of the House, the last time with 71 independent-minded,
reform-minded Democrats voting for this. This is the exact same bill
that has come before the House earlier.
This is the bill that prizes individual choice over Washington
mandates. It values local community control over more Washington
mandates. It celebrates individual empowerment by rewarding work and
not punishing families. It helps to build local leadership by building
capacity through control over communities and control over individuals.
It rewards work by removing the system that punishes work. It rewards
work by ensuring that people who take minimum wage jobs are not shut
out of vouchers, which is the administration's position. It eliminates
rules that are antifamily and replaces them with pro-family rules and
rules that are pro work.
This is a debate over accountability, responsibility, hope and
opportunity; about building for the future versus defending the status
quo. Vote for this amendment. Vote for the future of America. Help our
poor working Americans.
Mrs. ROUKEMA. Mr. Chairman, I rise in strong support of the Leach-
Lazio amendment adding H.R. 2, the Housing Opportunity and
Responsibility Act to the VA/HUD appropriations bill. Reforming our
public housing system is long overdue. Our public housing programs have
been a failure. For years I served as the Ranking Minority Member on
the Banking Housing Subcommittee. While we made repeated attempts to
address the waste, fraud and abuse inherent in our public housing
system, this is the first time we have had a comprehensive plan
offering effective solutions. This provision is the same legislation
passed by this House by a significant margin earlier this year.
H.R. 2 will give public housing families the tools they need to help
themselves achieve decent housing at a affordable price, in safer
neighborhoods, with significant resident management and local control.
We have made great strides in reforming our welfare system in an
effort to give people the hand up they need rather than a hand out. But
the job of reforming our welfare system will not be complete until we
make fundamental changes to and reform of our public housing system.
H.R. 2 is based on several simple principles: A shared objective to
provide clean, safe, affordable housing for our lower-income families
in America; personal responsibility; protection for the residents of
public housing; removal of disincentives to work; and empowerment of
the individual and family tenant by offering them choices.
H.R. 2 represents a bold step forward, and Chairman Leach and
Subcommittee Chairman Lazio are to be commended for their steadfast
commitment to seeing that these reforms become a reality. I urge my
colleagues to support this amendment.
The CHAIRMAN. All time has expired.
The question is on the amendment offered by the gentleman from New
York (Mr. Lazio).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. LAZIO. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 501, further proceedings
on the amendment offered by the gentleman from New York (Mr. Lazio)
will be postponed.
Sequential Votes Postponed in Committee of the Whole
The CHAIRMAN. Pursuant to House Resolution 501, proceedings will now
resume on those amendments on which further proceedings were postponed
in the following order: Amendments numbered 18 offered by the gentleman
from Ohio (Mr. Stokes) and amendment No. 12 offered by the gentleman
from New York (Mr. Lazio).
The Chair will reduce to 5 minutes the time for any electronic vote
after the first vote in this series.
Amendments Numbered 18 Offered by Mr. Stokes
The CHAIRMAN. The pending business is the demand for a recorded vote
on the amendments offered by the gentleman from Ohio (Mr. Stokes) on
which further proceedings were postponed and on which the noes
prevailed by voice vote.
The Clerk will redesignate the amendments.
The Clerk redesignated the amendments.
Recorded Vote
The CHAIRMAN. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 201,
noes 215, not voting 18, as follows:
[Roll No 295]
AYES--201
Abercrombie
Ackerman
Allen
Andrews
Baesler
Baldacci
Barcia
Barrett (WI)
Becerra
Bentsen
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Boswell
Boucher
Boyd
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Campbell
Capps
Cardin
Carson
Clay
Clayton
Clement
Clyburn
Condit
Conyers
Costello
Coyne
Cramer
Cummings
Danner
Davis (FL)
Davis (IL)
Davis (VA)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Diaz-Balart
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Edwards
Engel
English
Ensign
Eshoo
Etheridge
Evans
Farr
Fattah
Fazio
Fox
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Gilman
Gordon
Green
Gutierrez
Hall (OH)
Hall (TX)
Hamilton
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Hooley
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (WI)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lipinski
LoBiondo
Lofgren
Lowey
Luther
Maloney (CT)
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McHale
McHugh
McIntyre
McKinney
Meehan
Meek (FL)
Meeks (NY)
Menendez
Miller (CA)
Minge
Mink
Mollohan
Moran (VA)
Morella
Nadler
Neal
Oberstar
Obey
Olver
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Pickett
Pomeroy
Poshard
Price (NC)
Quinn
Rahall
Ramstad
Rangel
Reyes
Rivers
Rodriguez
Roemer
Ros-Lehtinen
Rothman
Rush
Sabo
Sanchez
Sanders
Sandlin
Sawyer
Schumer
Scott
Serrano
Sherman
Sisisky
Skaggs
Skelton
Slaughter
Smith (NJ)
Smith, Adam
Spratt
Stabenow
Stark
Stenholm
Stokes
Strickland
Tauscher
Taylor (MS)
Thompson
Thurman
Tierney
Torres
Towns
Traficant
Turner
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Weygand
Wise
Woolsey
Wynn
Yates
NOES--215
Aderholt
Archer
Armey
Bachus
Baker
Ballenger
Barr
Barrett (NE)
Bartlett
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Borski
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Coble
Coburn
Collins
Combest
Cook
Cooksey
Cox
Crane
Crapo
Cubin
Cunningham
Deal
DeLay
Dickey
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Franks (NJ)
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Goode
Goodlatte
Goodling
Goss
Graham
Granger
Greenwood
Gutknecht
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hilleary
Hobson
Hoekstra
Holden
Horn
Hostettler
Houghton
[[Page H5821]]
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King (NY)
Kingston
Klink
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Livingston
Lucas
Manzullo
McCollum
McCrery
McDade
McInnis
McIntosh
McKeon
Metcalf
Mica
Miller (FL)
Moran (KS)
Murtha
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Paul
Paxon
Pease
Peterson (PA)
Petri
Pickering
Pitts
Pombo
Porter
Portman
Pryce (OH)
Radanovich
Redmond
Regula
Riggs
Riley
Rogan
Rogers
Rohrabacher
Roukema
Royce
Ryun
Salmon
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skeen
Smith (MI)
Smith (OR)
Smith (TX)
Smith, Linda
Snowbarger
Solomon
Souder
Spence
Stearns
Stump
Stupak
Sununu
Talent
Tauzin
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
NOT VOTING--18
Barton
Doolittle
Filner
Ford
Gonzalez
Harman
Hill
John
Kennelly
Lewis (GA)
McNulty
Millender-McDonald
Moakley
Ortiz
Parker
Roybal-Allard
Snyder
Tanner
{time} 1301
Messrs. PACKARD, WELLER and SHAYS changed their vote from ``aye'' to
``no.''
Mr. QUINN changed his vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 12 Offered by Mr. Lazio of New York
The CHAIRMAN pro tempore (Mr. LaHood). The pending business is the
demand for a recorded vote on the amendment offered by the gentleman
from New York (Mr. Lazio) on which further proceedings were postponed
and on which the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN. A recorded vote has been demanded.
This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 230,
noes 181, not voting 23, as follows:
[Roll No. 296]
AYES--230
Aderholt
Archer
Armey
Bachus
Baesler
Baker
Ballenger
Barr
Barrett (NE)
Bartlett
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Borski
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Calvert
Camp
Campbell
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Cox
Crane
Crapo
Cubin
Cunningham
Danner
Davis (VA)
Deal
DeLay
Diaz-Balart
Dickey
Doggett
Dreier
Duncan
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Fox
Franks (NJ)
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (TX)
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King (NY)
Kingston
Klink
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Luther
Manzullo
McCollum
McCrery
McDade
McInnis
McIntosh
McIntyre
McKeon
Metcalf
Miller (FL)
Moran (KS)
Morella
Myrick
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Paxon
Pease
Peterson (PA)
Petri
Pickering
Pitts
Pombo
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryun
Salmon
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Linda
Snowbarger
Solomon
Souder
Spence
Stearns
Stenholm
Strickland
Stump
Sununu
Talent
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Traficant
Upton
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
NOES--181
Abercrombie
Ackerman
Allen
Andrews
Baldacci
Barcia
Barrett (WI)
Becerra
Bentsen
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Boswell
Boucher
Boyd
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Capps
Cardin
Carson
Clay
Clayton
Clement
Clyburn
Conyers
Costello
Coyne
Cramer
Cummings
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dicks
Dingell
Dixon
Dooley
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Fazio
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Gordon
Green
Gutierrez
Hall (OH)
Hamilton
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Johnson (WI)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lipinski
Lofgren
Lowey
Maloney (CT)
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McHale
McHugh
McKinney
Meehan
Meek (FL)
Meeks (NY)
Menendez
Miller (CA)
Minge
Mink
Mollohan
Moran (VA)
Murtha
Nadler
Neal
Nethercutt
Oberstar
Obey
Olver
Owens
Pallone
Pascrell
Pastor
Paul
Payne
Pelosi
Peterson (MN)
Pickett
Pomeroy
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roemer
Rothman
Rush
Sabo
Sanchez
Sanders
Sandlin
Sawyer
Schumer
Scott
Serrano
Sherman
Sisisky
Skaggs
Slaughter
Smith, Adam
Spratt
Stabenow
Stark
Stokes
Stupak
Tauscher
Thompson
Thurman
Tierney
Torres
Towns
Turner
Velazquez
Vento
Visclosky
Walsh
Waters
Watt (NC)
Waxman
Wexler
Weygand
Wise
Woolsey
Wynn
Yates
NOT VOTING--23
Barton
Callahan
Doolittle
Dunn
Filner
Ford
Gonzalez
Harman
Hill
Jefferson
John
Kennelly
Lewis (GA)
Livingston
McNulty
Mica
Millender-McDonald
Moakley
Ortiz
Parker
Roybal-Allard
Snyder
Tanner
{time} 1308
Mr. McINTYRE and Mr. SPRATT changed their vote from ``aye'' to
``no.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.
personal explanation
Mr. MICA. Mr. Chairman, on rollcall No. 296, the Leach and Lazio
amendment to H.R. 4194, I was unavoidly detained. Had I been present, I
would have voted ``Yes.''
The CHAIRMAN. The committee will rise informally.
The SPEAKER pro tempore (Mr. Pease) assumed the chair.
____________________