[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[House]
[Pages H9359-H9438]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 4194, DEPARTMENTS OF VETERANS AFFAIRS AND 
HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS 
                               ACT, 1999

  Mr. LEWIS of California (during debate on H.R. 4280) submitted the 
following conference report and statement on 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 the fiscal year 
ending September 30, 1999, and for other purposes:

                  Conference Report (H. Rept. 105-769)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to 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 the fiscal year ending September 30, 1999, and 
     for other purposes'', having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the Departments 
     of Veterans Affairs and Housing and Urban Development, and 
     for sundry independent agencies, boards, commissions, 
     corporations, and offices for the fiscal year ending 
     September 30, 1999, and for other purposes, namely:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration


                       compensation and pensions

                     (including transfers of funds)

       For the payment of compensation benefits to or on behalf of 
     veterans and a pilot program for disability examinations as 
     authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 
     53, 55, and 61); pension benefits to or on behalf of veterans 
     as authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 
     61; 92 Stat. 2508); and burial benefits, emergency and other 
     officers' retirement pay, adjusted-service credits and 
     certificates, payment of premiums due on commercial life 
     insurance policies guaranteed under the provisions of Article 
     IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as 
     amended, and for other benefits as authorized by law (38 
     U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, 
     and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 
     735; 76 Stat. 1198), $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

[[Page H9360]]

     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), $17,306,000,000, plus reimbursements: Provided, 
     That of the funds made available under this heading, 
     $778,000,000 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, not to 
     exceed $27,420,000 may be transferred to and merged with the 
     appropriation for ``General operating expenses'': Provided 
     further, That of the funds made available under this heading, 
     up to $10,000,000 shall be for implementation of the Primary 
     Care Providers Incentive Act, contingent upon enactment of 
     authorizing legislation.
       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, $316,000,000, plus reimbursements: Provided, 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.


      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, $63,000,000, 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 
     $90,000 may be transferred to and merged with the 
     appropriation for ``General operating expenses''.


                      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, $36,000,000: Provided, That of the amount made 
     available under this heading, not to exceed $30,000 may be 
     transferred to and merged with the appropriation for 
     ``General operating expenses''.


                      Construction, Major Projects

                     (including transfer of funds)

       For constructing, altering, extending and improving any of 
     the facilities under the jurisdiction or for the use of the 
     Department of Veterans Affairs, or for any of the purposes 
     set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 
     8108, 8109, 8110, and 8122 of title 38, United States Code, 
     including planning, architectural and engineering services, 
     maintenance or guarantee period services costs associated 
     with equipment guarantees provided under the project, 
     services of claims analysts, offsite utility and storm 
     drainage system construction costs, and site acquisition, 
     where the estimated cost of a project is $4,000,000 or more 
     or where funds for a project were made available in a 
     previous major project appropriation, $142,300,000, 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: Provided further, That not to exceed $125,000 may be 
     transferred to the Pershing Hall Revolving Fund, codified at 
     section 493(d) of title 36, United States Code: Provided 
     further, That during fiscal year 1999, or in subsequent 
     fiscal years, the ``Construction, major projects'' account 
     shall be reimbursed, in the amount transferred, from other 
     funds as they become part of the Pershing Hall Revolving 
     Fund.


                      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

[[Page H9361]]

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


                         parking revolving fund

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


       grants for construction of state extended care facilities

       For grants to assist States to acquire or construct State 
     nursing home and domiciliary facilities and to remodel, 
     modify or alter existing hospital, nursing home and 
     domiciliary facilities in State homes, for furnishing care to 
     veterans as authorized by 38 U.S.C. 8131-8137, $90,000,000, 
     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) The provisions of subsection (a) are effective on the 
     latter of the first day of the 106th Congress or January 3, 
     1999.
       Sec. 110. Land Conveyance, Ridgecrest Children's Center, 
     Alabama. (a) Conveyance.--The Secretary of Veterans Affairs 
     may convey, without consideration, to the Board of Trustees 
     of the University of Alabama, all right, title, and interest 
     of the United States in and to the parcel of real property, 
     including any improvements thereon, described in subsection 
     (b).
       (b) Covered Parcel.--The parcel of real property to be 
     conveyed under subsection (a) is the following: A parcel of 
     property lying in the northeast quarter of the southwest 
     quarter, section 28, township 21 south, range 9 west, 
     Tuscaloosa County, Alabama, lying along and adjacent to 
     Ridgecrest (Brewer's Porch) Children's Center being more 
     particularly described as follows: As a point of commencement 
     start at the southeast corner of the north half of the 
     southwest quarter run in an easterly direction along an 
     easterly projection of the north boundary of the southeast 
     quarter of the southwest quarter for a distance of 888.52 
     feet to a point; thence with a deflection angle to the left 
     of 134 degrees 41 minutes run in a northwesterly direction 
     for a distance of 1164.38 feet to an iron pipe; thence with a 
     deflection angle to the left of 75 degrees 03 minutes run in 
     a southwesterly direction for a distance of 37.13 feet to the 
     point of beginning of this parcel of property; thence 
     continue in this same southwesterly direction along the 
     projection of the chainlink fence for a distance of 169.68 
     feet to a point; thence with an interior angle to the left of 
     63 degrees 16 minutes run in a northerly direction for a 
     distance of 233.70 feet to a point; thence with an interior 
     angle to the left of 43 degrees 55 minutes run in a 
     southeasterly direction for a distance of 218.48 feet to the 
     point of beginning, said parcel having an interior angle of 
     closure of 72 degrees 49 minutes, said parcel containing 0.40 
     acres more or less, said parcel of property is also subject 
     to all rights-of-way, easements, and conveyances heretofore 
     given for this parcel of property.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       Sec. 111. (a) The Department of Veterans Affairs medical 
     center in Cleveland, Ohio, is hereby designated as the 
     ``Louis Stokes Cleveland 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 
     ``Louis Stokes Cleveland Department of Veterans Affairs 
     Medical Center''.
       (b) 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 and rescission 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, 
     $10,326,542,030, 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 (including renewals) 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 in 
     the case of enhanced vouchers provided under this heading, if 
     the income of a family receiving assistance declines to a 
     significant extent, the percentage of income paid by the 
     family for rent shall not exceed the greater of 30 percent or 
     the percentage of income paid at the time of mortgage 
     prepayment: 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, 
     $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

[[Page H9362]]

     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.
       For tenant-based assistance under the United States Housing 
     Act of 1937 to help eligible families make the transition 
     from welfare to work, $283,000,000 from the total amount 
     provided under this heading, to be administered by public 
     housing agencies (including Indian tribes and their tribally 
     designated housing entities, 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 two years, 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 under the United States 
     Housing Act of 1937: 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 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: Provided further, That of the amount made 
     available under this paragraph, at least $4,000,000 each 
     shall be made available for local self-sufficiency/
     welfare-to-work initiatives in San Bernardino County, 
     California; Cleveland, Ohio; Kansas City, Missouri; 
     Charlotte, North Carolina; Miami/Dade County, Florida; 
     Prince Georges County, Maryland; New York City, New York; 
     and Anchorage, Alaska.
       From the sources and in the order hereinafter specified, 
     $1,650,000,000 is rescinded: Provided, That the first source 
     shall be amounts that are available or may be recaptured from 
     project-based contracts for section 8 assistance that expired 
     or were terminated during fiscal year 1999 or any prior year: 
     Provided further, That after all amounts that are available 
     or may be recaptured from the first source have been 
     exhausted, the second source shall be unobligated amounts 
     from amendments to contracts for project-based section 8 
     assistance, other than contracts for projects developed under 
     section 202 of the Housing Act of 1959, other than amounts 
     described as the fourth source, in the fourth proviso in this 
     paragraph, that are carried over into 1999: Provided further, 
     That after all amounts that are available from the second 
     source are exhausted, the third source shall be amounts 
     recaptured from section 8 reserves in the section 8 moderate 
     rehabilitation program: Provided further, That after all 
     amounts that are available or may be recaptured from the 
     third source have been exhausted, the fourth source shall be 
     all unobligated amounts for project-based assistance that are 
     earmarked under the third proviso under this heading in 
     Public Law 105-65, 111 Stat. 1351 (approved October 27, 
     1997): Provided further, That any amounts that are available 
     or recaptured in connection with the first or third provisos 
     of this paragraph that are in the Annual Contributions for 
     Assisted Housing account, and are required to be rescinded by 
     this paragraph, shall be rescinded from the Annual 
     Contributions for Assisted Housing account.


                      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.


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

[[Page H9363]]

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


     revitalization of severely distressed public housing (hope vi)

       For grants to public housing agencies for assisting in the 
     demolition of obsolete public housing projects or portions 
     thereof, the revitalization (where appropriate) of sites 
     (including remaining public housing units) on which such 
     projects are located, replacement housing which will avoid or 
     lessen concentrations of very low-income families, and 
     tenant-based assistance in accordance with section 8 of the 
     United States Housing Act of 1937; and for providing 
     replacement housing and assisting tenants displaced by the 
     demolition (including appropriate homeownership down payment 
     assistance for displaced tenants), $625,000,000, to remain 
     available until expended, of which the Secretary may use up 
     to $15,000,000 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 heading or under prior 
     appropriations Acts for use for the purposes under this 
     heading 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.


                 rural housing and economic development

                     (including transfer of funds)

       For an Office of Rural Housing and Economic Development to 
     be established in the Department of Housing and Urban 
     Development, $25,000,000, to remain available until expended: 
     Provided, That of the amount under this heading, $4,000,000 
     shall be used to develop capacity at the State and local 
     level for developing rural housing and for economic 
     development, of which $1,000,000 shall be used to develop a 
     clearinghouse of ideas for innovative strategies for rural 
     housing and economic development and revitalization and of 
     which $3,000,000 shall be awarded by June 1, 1999 directly to 
     local rural nonprofits, community development corporations 
     and Indian tribes to support capacity building and technical 
     assistance: Provided further, That of the amount under this 
     heading, $21,000,000 shall be awarded by June 1, 1999 to 
     Indian tribes, State housing finance agencies, State 
     community and/or economic development agencies, local rural 
     nonprofits and community development corporations to support 
     innovative housing and economic development activities in 
     rural areas, of which $5,000,000 shall be awarded as seed 
     support for Indian tribes, nonprofits and community 
     development corporations that are located in areas that have 
     limited capacity for the development of rural housing and for 
     economic development: Provided further, That all grants shall 
     be awarded on a competitive basis as specified in section 102 
     of the HUD Reform Act: Provided further, That all funds 
     unobligated as of October 1, 1998 under the fifth paragraph 
     of the Community Development Block Grants account in the 
     Department of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriation Act, 1998 
     (Public Law 105-65; October 27, 1997) shall be transferred to 
     this account to be awarded to Indian tribes, State housing 
     finance agencies, State community and/or economic development 
     corporations for activities under this heading with any 
     outstanding earmarks for a State to be awarded to that 
     State's housing finance agency.

                   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), $215,000,000, to remain available 
     until expended: Provided, That the Secretary may use up to 1 
     percent of the funds under this heading for technical 
     assistance: Provided further, That within 30 days of the 
     close of fiscal year 1999, the Secretary shall submit a 
     report to the Congress summarizing all technical assistance 
     provided during the fiscal year.


                   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), $4,750,000,000, 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, $3,000,000 shall be available for 
     the Organizing Committee for the 1999 Special Olympics Summer 
     Games to be used in support of related activities in the 
     Triangle Area of North Carolina, $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: Provided further, That all funding decisions 
     under section 107 except as specified herein shall be subject 
     to a reprogramming request unless otherwise specified in 
     accordance with the terms and conditions specified in the 
     joint explanatory statement of the committee of conference 
     accompanying this Act (H.R. 4194): Provided further, That 
     $27,500,000 shall be for grants pursuant to the Self Help 
     Housing Opportunity program, subject to authorization of 
     which $7,500,000 shall be for capacity building efforts: 
     Provided further, That not to exceed 20 percent of any grant 
     made with funds appropriated herein (other than a grant made 
     available in this paragraph to the Housing Assistance Council 
     or the National American Indian Housing Council, or a grant 
     using funds under section 107(b)(3) of the Housing and 
     Community Development Act of 1974, as amended) shall be 
     expended for ``Planning and Management Development'' and 
     ``Administration'' as defined in regulations promulgated by 
     the Department.
       Of the amount made available under this heading, 
     $15,000,000 shall be made available for ``Capacity Building 
     for Community Development and Affordable Housing,'' for LISC 
     and the Enterprise Foundation for activities as authorized by 
     section 4 of the HUD Demonstration Act of 1993 (Public Law 
     103-120), as in effect immediately before June 12, 1997, with 
     not less than $5,000,000 of the funding to be used in rural 
     areas, including tribal areas.
       Of the amount made available under this heading, 
     $12,000,000 is for the City of Oklahoma City, Oklahoma, for a 
     revolving loan pool that shall be subject to the following 
     requirements and conditions: (1) amounts in the pool shall be 
     available only for the purposes of making loans to carry out 
     economic development activities that primarily benefit the 
     area in Oklahoma City bounded on the south by Robert S. Kerr 
     Avenue, on the north by North 13th Street, on the east by 
     Oklahoma Avenue, and on the west by Shartel Avenue, and 
     covering costs involved in administering the loan pool; (2) 
     amounts provided under this paragraph shall be available for 
     use from the loan pool only to the extent that the amounts 
     contributed to the loan pool (or committed to be contributed) 
     from non-Federal sources equal or exceed two times the 
     amounts provided under this paragraph; (3) any repayments of 
     principal and interest from loans made by the pool shall be 
     deposited in the pool

[[Page H9364]]

     and available for use for loans in accordance with this 
     paragraph; (4) amounts in the pool may not be used to provide 
     loans to any agency or entity of the Federal Government or 
     any State government or unit of general local government; (5) 
     amounts provided under this paragraph shall be available for 
     use from the loan pool only if the City of Oklahoma City, 
     Oklahoma agrees (to the satisfaction of the Secretary of 
     Housing and Urban Development) to deposit in the pool (for 
     use for loans in accordance with this paragraph) the net 
     proceeds from any amounts that are repaid to the City under 
     loans made by the City using amounts provided under this same 
     heading under chapter III of title III of Public Law 104-19 
     (109 Stat. 253).
       Of the amount provided under this heading, the Secretary of 
     Housing and Urban Development may use up to $55,000,000 for a 
     public and assisted housing self-sufficiency program, of 
     which up to $5,000,000 may be used for the Moving to Work 
     Demonstration, and at least $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 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, $42,500,000 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: Provided further, That up to $2,500,000 may be used 
     for capacity buildings efforts.
       Of the amount made available under this heading, 
     $225,000,000 shall be available for the Economic Development 
     Initiative (EDI) to finance a variety of efforts, including 
     $190,000,000 for making grants for targeted economic 
     investments in accordance with the terms and conditions 
     specified for such grants in the joint explanatory statement 
     of the committee of conference accompanying this Act.
       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.
       For any fiscal year, of the amounts made available as 
     emergency funds under the heading ``Community Development 
     Block Grants Fund'' and notwithstanding any other provision 
     of law, not more than $250,000 may be used for the non-
     Federal cost-share of any project funded by the Secretary of 
     the Army through the Corps of Engineers.

                       brownfields redevelopment

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


                  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 
     $17,500,000 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 not less than 30 percent of these funds shall 
     be used for permanent housing, and all funding for services 
     must be matched by 25 percent in funding by each grantee: 
     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 
     appropriations 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 and award such amounts during this 
     fiscal year: Provided further, That up to 1 percent of the 
     funds appropriated under this heading may be used for 
     technical assistance and tracking systems needed to carry out 
     the directives provided in House Report 105-610.

                            Housing Programs


                    housing for special populations

       For assistance for the purchase, construction, acquisition, 
     or development of additional public and subsidized housing 
     units for low income families not otherwise provided for, 
     $854,000,000, to remain available until expended: Provided, 
     That of the total amount provided under this heading, 
     $660,000,000 shall be for capital advances, including 
     amendments to capital advance contracts, for housing for the 
     elderly, as authorized by section 202 of the Housing Act of 
     1959, as amended, and for project rental assistance, and 
     amendments to contracts for project rental assistance, for 
     the elderly under section 202(c)(2) of the Housing Act of 
     1959, and for supportive services associated with the 
     housing; and $194,000,000 shall be for capital advances, 
     including amendments to capital advance contracts, for 
     supportive housing for persons with disabilities, as 
     authorized by section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act, for project rental assistance, for 
     amendments to contracts for project rental assistance, and 
     supportive services associated with the housing for persons 
     with disabilities as authorized by section 811 of such Act: 
     Provided further, That the Secretary may designate up to 25 
     percent of the amounts earmarked under this paragraph for 
     section 811 of such Act for tenant-based assistance, as 
     authorized under that section, including such authority as 
     may be waived under the next proviso, which assistance is 
     five years in duration: Provided further, That the Secretary 
     may waive any provision of section 202 of the Housing Act of 
     1959 and section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act (including the provisions governing 
     the terms and conditions of project rental assistance and 
     tenant-based assistance) that the Secretary determines is not 
     necessary to achieve the objectives of these programs, or 
     that otherwise impedes the ability to develop, operate or 
     administer projects assisted under these programs, and may 
     make provision for alternative conditions or terms where 
     appropriate.


                         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 $100,000,000: 
     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.

[[Page H9365]]

       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.


             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: 
     Provided further, That any amounts made available in any 
     prior appropriations Act for the cost (as such term is 
     defined in section 502 of the Congressional Budget Act of 
     1974) of guaranteed loans that are obligations of the funds 
     established under section 238 or 519 of the National Housing 
     Act that have not been obligated or that are deobligated 
     shall be available to the Secretary of Housing and Urban 
     Development in connection with the making of such guarantees 
     and shall remain available until expended, notwithstanding 
     the expiration of any period of availability otherwise 
     applicable to such amounts.
       Gross obligations for the principal amount of direct loans, 
     as authorized by sections 204(g), 207(l), 238, 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.

                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.

                   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.

                     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 
     $10,000,000 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 non-administrative 
     expenses of the Department of Housing and Urban Development, 
     not otherwise provided for, including not to exceed $7,000 
     for official reception and representation expenses, 
     $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 by transfer from the 
     ``Title VI Indian Federal Guarantees Program'' account, 
     and $400,000 shall be provided by transfer from the 
     ``Indian Housing Loan Guarantee Fund Program'' account: 
     Provided, That the Department is prohibited from employing 
     more than 77 schedule C and 20 noncareer Senior Executive 
     Service employees.


                      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: Provided, That the Inspector 
     General shall have independent authority over all personnel 
     issues within the Office of Inspector General.

             Office of Federal Housing Enterprise Oversight


                         salaries and expenses

                     (including transfer of funds)

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


                       administrative provisions

    public and assisted housing rents, preferences, and flexibility

       Sec. 201. 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.''.


                      gse default loss protection

       Sec. 202. (a) Section 305(a)(2) of the Federal Home Loan 
     Corporation Act is amended in the first sentence by--
       (1) striking ``or'' at the end of clause (B);
       (2) striking the period at the end of the first sentence 
     and inserting in lieu thereof: ``; or (D) the mortgage is 
     subject to default loss protection that the Corporation 
     determines is financially equal or superior, on an individual 
     or pooled basis, to the protection provided by clause (C) of 
     this sentence: Provided, That if the Director of the Office 
     of Federal Housing Enterprise Oversight subsequently finds 
     that such default loss protection determined by the 
     Corporation does not provide such equal or superior 
     protection, the Corporation shall provide such additional 
     default loss protection for such mortgage, as approved by the 
     Director of the Office of Federal Housing Enterprise 
     Oversight, necessary to provide such equal or superior 
     protection.'';
       (b) Section 1313(b) of the Federal Housing Enterprises 
     Financial Housing Safety and Soundness Act of 1992 is amended 
     by renumbering paragraphs ``(9)'', ``(10)'', and ``(11)'', as 
     ``(10)'', ``(11)'', and ``(12)'', respectively, and inserting 
     the following new paragraph ``(9)'':
       ``(9) default loss protection levels under section 
     305(a)(2)(D) of the Federal Home Loan Mortgage Corporation 
     Act;''.


                      Financing Adjustment Factors

       Sec. 203. Fifty percent of the amounts of budget authority, 
     or in lieu thereof 50 percent of the cash amounts associated 
     with such budget authority, that are recaptured from projects 
     described in section 1012(a) of the Stewart B. McKinney 
     Homeless Assistance Amendments Act of 1988 (Public Law 100-
     628, 102 Stat. 3224, 3268) shall be rescinded, or in the case 
     of cash, shall be remitted to the Treasury, and such amounts 
     of budget authority or cash recaptured and not rescinded or 
     remitted to the Treasury shall be used by State housing 
     finance agencies or local governments or local housing 
     agencies with projects approved by the Secretary of Housing 
     and Urban Development for which settlement occurred after 
     January 1, 1992, in accordance with such section. 
     Notwithstanding the previous sentence, the Secretary may 
     award up to 15 percent of the budget authority or cash 
     recaptured and not rescinded or remitted to the Treasury to 
     provide project owners with incentives to refinance their 
     project at a lower interest rate.


                      Fair Housing and Free Speech

       Sec. 204. None of the amounts made available under this Act 
     may be used during fiscal year 1999 to investigate or 
     prosecute under the Fair Housing Act any otherwise lawful 
     activity engaged in by one or more persons, including the 
     filing or maintaining of a nonfrivolous legal action, that is 
     engaged in solely for the purpose of achieving or preventing 
     action by a government official or entity, or a court of 
     competent jurisdiction.


                 Brownfields as Eligible CDBG Activity

       Sec. 205. For fiscal years 1998, 1999, and all fiscal years 
     thereafter, States and entitlement

[[Page H9366]]

     communities may use funds allocated under the community 
     development block grants program under title I of the Housing 
     and Community Development Act of 1974 for environmental 
     cleanup and economic development activities related to 
     Brownfields projects in conjunction with the appropriate 
     environmental regulatory agencies, as if such activities were 
     eligible under section 105(a) of such Act.


                     Enhanced Disposition Authority

       Sec. 206. Section 204 of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1997, is amended by striking 
     ``fiscal years 1997 and 1998'' and inserting ``fiscal years 
     1997, 1998, and 1999''.


           Housing Opportunities for Persons With AIDS Grants

       Sec. 207. (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. 208. 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.''.


 Elimination of Shopping Incentive for Voucher Families Who Remain in 
              Same Unit Upon Initial Receipt of Assistance

       Sec. 209. (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. 210. 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,''.


             FHA Multifamily Mortgage Credit Demonstrations

       Sec. 211. Section 542 of the Housing and Community 
     Development Act of 1992 is amended--
       (1) in subsection (b)(5) by adding before the period at the 
     end of the first sentence ``, and not more than an additional 
     25,000 units during fiscal year 1999'', and
       (2) in the first sentence of subsection (c)(4) by striking 
     ``1996 and'' and inserting ``1996,'' and by inserting after 
     ``fiscal year 1997'' the following: ``and not more than an 
     additional 25,000 units during fiscal year 1999''.


                       Calculation of Downpayment

       Sec. 212. Section 203(b)(10) of the National Housing Act is 
     amended by--
       (1) striking out ``Alaska and Hawaii'' and inserting in 
     lieu thereof ``Calculation of Downpayment''; and
       (2) striking out in subparagraph (A) ``originated in the 
     State of Alaska or the State of Hawaii and endorsed for 
     insurance in fiscal years 1997 and 1998,'' and inserting in 
     lieu thereof ``executed for insurance in fiscal years 1998, 
     1999, and 2000''.


                        State CDBG IDIS Funding

       Sec. 213. During fiscal year 1999, from amounts received by 
     a State under section 106(d)(1) of the Housing and Community 
     Development Act of 1974 for distribution in nonentitlement 
     areas, the State may deduct an amount, not to exceed the 
     greater of 0.25 percent of the amount so received or $50,000, 
     for implementation of the integrated disbursement and 
     information system established by the Secretary, in addition 
     to any amounts used for this purpose from amounts retained by 
     the State for administrative expenses under section 
     106(d)(3)(A).


                        Nursing Home Lease Terms

       Sec. 214. (a) Technical Correction.--Section 216 of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1998, is amended by striking out ``fifty years from the 
     date'' and inserting in lieu thereof ``fifty years to run 
     from the date''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be construed to have taken effect on October 27, 1997.


                  Technical for Emergency CDBG Program

       Sec. 215. For purposes of eligibility for funding under the 
     heading ``Community Development Block Grants'' in the 1998 
     Supplemental Appropriations and Rescissions Act (Public Law 
     105-174; May 1, 1998) the term ``States'' shall be deemed to 
     include ``Indian tribes'' as defined under section 102(a)(17) 
     of the Housing and Community Development Act of 1974 and 
     Guam, the Northern Mariana Islands, the Virgin Islands, and 
     American Samoa: Provided, That amounts made available by this 
     section are designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended.


           Use of Home Funds for Public Housing Modernization

       Sec. 216. Notwithstanding section 212(d)(5) of the 
     Cranston-Gonzalez National Affordable Housing Act, amounts 
     made available to the City of Bismarck, North Dakota, under 
     subtitle A of title II of the Cranston-Gonzalez National 
     Affordable Housing Act for fiscal years 1998, 1999, 2000, 
     2001 or 2002, may be used to carry out activities authorized 
     under section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 14371) for the purpose of modernizing the Crescent 
     Manor public housing project located at 107 East Bowen 
     Avenue, in Bismarck, North Dakota, if--
       (1) the Burleigh County Housing Authority (or any successor 
     public housing agency that owns or operates the Crescent 
     Manor public housing project) has obligated all other Federal 
     assistance made available to that public housing agency for 
     that fiscal year; or
       (2) the Secretary of Housing and Urban Development 
     authorizes the use of those amounts for the purpose of 
     modernizing that public housing project, which authorization 
     may be made with respect to one or more of those fiscal 
     years.


                        cdbg and home exemption

       Sec. 217. 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.


                        CDBG PUBLIC SERVICES CAP

       Sec. 218. Section 105(a)(8) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by 
     striking ``1998'' and inserting ``1999''.


                Clarification of Owner's Right to Prepay

       Sec. 219. (a) Prepayment Right.--Notwithstanding section 
     211 of the Housing and Community Development Act of 1987 or 
     section 221 of the Housing and Community Development Act of 
     1987 (as in effect pursuant to section 604(c) of the 
     Cranston-Gonzalez National Affordable Housing Act), subject 
     to subsection (b), with respect to any project that is 
     eligible low-income housing (as that term is defined in 
     section 229 of the Housing and Community Development Act of 
     1987)--
       (1) the owner of the project may prepay, and the mortgagee 
     may accept prepayment of, the mortgage on the project, and
       (2) the owner may request voluntary termination of a 
     mortgage insurance contract with respect to such project and 
     the contract may be terminated notwithstanding any 
     requirements under sections 229 and 250 of the National 
     Housing Act.
       (b) Conditions.--Any prepayment of a mortgage or 
     termination of an insurance contract authorized under 
     subsection (a) may be made--
       (1) only to the extent that such prepayment or termination 
     is consistent with the terms and conditions of the mortgage 
     on or mortgage insurance contract for the project;
       (2) only if owner of the project involved agrees not to 
     increase the rent charges for any dwelling unit in the 
     project during the 60-day period beginning upon such 
     prepayment or termination; and

[[Page H9367]]

       (3) only if the owner of the project provides notice of 
     intent to prepay or terminate, in such form as the Secretary 
     of Housing and Urban Development may prescribe, to each 
     tenant of the housing, the Secretary, and the chief executive 
     officer of the appropriate State or local government for the 
     jurisdiction within which the housing is located, not less 
     than 150 days, but not more than 270 days, before such 
     prepayment or termination, except that such requirement shall 
     not apply to a prepayment or termination that--
       (A) occurs during the 150-day period immediately following 
     the date of enactment of this Act;
       (B) 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 Ownership Act of 
     1990 (12 U.S.C. 4120(a)), or
       (C) will otherwise ensure that the project will continue to 
     operate, at least until the maturity date of the loan or 
     mortgage, in a manner that will provide rental housing on 
     terms at least as advantageous to existing and future tenants 
     as the terms required by the program under which the loan or 
     mortgage was made or insured prior to the proposed prepayment 
     or termination.


            Public and Assisted Housing Drug Elimination Act

       Sec. 220. The Public and Assisted Housing Drug Elimination 
     Act of 1990 is amended--
       (1) in section 5123, by inserting ``Indian tribes'' before 
     ``and private'';
       (2) in section 5124(a)(7), by inserting ``, an Indian 
     tribe,'' before ``or tribally designated'';
       (3) in section 5125, by inserting ``an Indian tribe'' 
     before ``a tribally designated''; and
       (4) in section 5126, by adding at the end the following new 
     paragraph:
       ``(6) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4(12) of the Native 
     American Housing Assistance and Self Determination Act of 
     1996, 25 U.S.C. 4103(12).''.


                     Multifamily Housing Institute

       Sec. 221. Notwithstanding any other provision of law, the 
     Secretary may, from time to time, as determined necessary to 
     assist the Department in managing its multifamily assets 
     including analyzing, tracking and evaluating its portfolio of 
     FHA-insured and other mortgages and properties and assisting 
     the Department in understanding and reducing the risk 
     involved in its mortgage restructuring, insuring and 
     guaranteeing activities, provide data to, and purchase data 
     from, any nonprofit, industry supported, on-line provider of 
     nationwide, multifamily housing loan and property data 
     services.


                     Multifamily Mortgage Auctions

       Sec. 222. Section 221(g)(4)(C) of the National Housing Act 
     is amended--
       (1) in the first sentence of clause (viii), by striking 
     ``September 30, 1996'' and inserting ``December 31, 2002''; 
     and
       (2) by adding at the end the following:
       ``(ix) The authority of the Secretary to conduct 
     multifamily auctions under this paragraph shall be effective 
     for any fiscal year only to the extent and in such amounts as 
     are approved in appropriations Acts for the costs of loan 
     guarantees (as defined in section 502 of the Congressional 
     Budget Act of 1974), including the cost of modifying 
     loans.''.


                           Funding Correction

       Sec. 223. Notwithstanding any other provision of law, of 
     the $1,250,000 made available pursuant to Public Law 102-389 
     for economic revitalization and infrastructure repair in 
     Montpelier, Vermont, $250,000 is available for the Central 
     Vermont Revolving Loan Fund administered by the Central 
     Vermont Community Action Council.


                Annual Report on Management Deficiencies

       Sec. 224.(a) In General.--Section 203 of the National 
     Housing Act (12 U.S.C. 1709) is amended by adding at the end 
     the following:
       ``(x) Management Deficiencies Report.--
       ``(1) In general.--Not later than 60 days after the date of 
     enactment of this subsection, and annually thereafter, the 
     Secretary shall submit to Congress a report on the plan of 
     the Secretary to address each material weakness, reportable 
     condition, and noncompliance with an applicable law or 
     regulation (as defined by the Director of the Office of 
     Management and Budget) identified in the most recent audited 
     financial statement of the Federal Housing Administration 
     submitted under section 3515 of title 31, United States Code.
       ``(2) Contents of annual report.--Each report submitted 
     under paragraph (1) shall include--
       ``(A) an estimate of the resources, including staff, 
     information systems, and contract assistance, required to 
     address each material weakness, reportable condition, and 
     noncompliance with an applicable law or regulation described 
     in paragraph (1), and the costs associated with those 
     resources;
       ``(B) an estimated timetable for addressing each material 
     weakness, reportable condition, and noncompliance with an 
     applicable law or regulation described in paragraph (1); and
       ``(C) the progress of the Secretary in implementing the 
     plan of the Secretary included in the report submitted under 
     paragraph (1) for the preceding year, except that this 
     subparagraph does not apply to the initial report submitted 
     under paragraph (1).''.
       Sec. 225. (a) Informed Consumer Choice.--Section 203(b)(2) 
     of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended 
     by adding at the end the following:
       ``In conjunction with any loan insured under this section, 
     an original lender shall provide to each prospective borrower 
     a disclosure notice that provides a one page analysis of 
     mortgage products offered by that lender and for which the 
     borrower would qualify. This notice shall include: (i) a 
     generic analysis comparing the note rate (and associated 
     interest payments), insurance premiums, and other costs and 
     fees that would be due over the life of the loan for a loan 
     insured by the Secretary under this subsection with the note 
     rates, insurance premiums (if applicable), and other costs 
     and fees that would be expected to be due if the mortgagor 
     obtained instead other mortgage products offered by the 
     lender and for which the borrower would qualify with a 
     similar loan-to-value ratio in connection with a conventional 
     mortgage (as that term is used in section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) or section 302(b)(2) of the Federal National 
     Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as 
     applicable), assuming prevailing interest rates; and (ii) a 
     statement regarding when the mortgagor's requirement to pay 
     the mortgage insurance premiums for a mortgage insured under 
     this section would terminate or a statement that the 
     requirement will terminate only if the mortgage is 
     refinanced, paid off, or otherwise terminated.''.
       (b) Regulation.--The Secretary of Housing and Urban 
     Development shall develop the disclosure notice under 
     subsection (a) within 150 days of enactment through notice 
     and comment rulemaking.
       Sec. 226. Funding of Certain Public Housing.--
     Notwithstanding any other provision of law, no funds in this 
     or any other Act may hereafter be used by the Secretary of 
     Housing and Urban Development to determine allocations or 
     provide assistance for operating subsidies or modernization 
     for certain State and city funded and locally developed 
     public housing units, as defined for purposes of a statutory 
     paragraph, notwithstanding the deeming by statute of such 
     units to be public housing units developed under the United 
     States Housing Act of 1937, unless such unit was so assisted 
     before October 1, 1998.


                       Section 236 Program Reform

       Sec. 227. Section 236(g) of the National Housing Act, as 
     amended by section 221(c) of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1997, is amended to read as 
     follows:
       ``(g) The project owner shall, as required by the 
     Secretary, accumulate, safeguard, and periodically pay the 
     Secretary or such other entity as determined by the Secretary 
     and upon such terms and conditions as the Secretary deems 
     appropriate, all rental charges collected on a unit-by-unit 
     basis in excess of the basic rental charges. Unless otherwise 
     directed by the Secretary, such excess charges shall be 
     credited to a reserve used by the Secretary to make 
     additional assistance payments as provided in paragraph (3) 
     of subsection (f). Notwithstanding any other requirements of 
     this subsection, an owner of a project with a mortgage 
     insured under this section, or a project previously assisted 
     under subsection (b) but without a mortgage insured under 
     this section if the project mortgage was insured under 
     section 207 of this Act before July 30, 1998 pursuant to 
     section 223(f) of this Act and assisted under subsection (b), 
     may retain some or all of such excess charges for project use 
     if authorized by the Secretary and upon such terms and 
     conditions as established by the Secretary.''.


                    fha mortgage insurance increase

       Sec. 228. (a) Subparagraph (A) of section 203(b)(2) of the 
     National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by 
     striking clause (ii) and all that follows through the end of 
     the subparagraph and inserting the following:
       ``(ii) 87 percent of the dollar amount limitation 
     determined under section 305(a)(2) of the Federal Home Loan 
     Mortgage Corporation Act for a residence of the applicable 
     size; except that the dollar amount limitation in effect for 
     any area under this subparagraph may not be less than 48 
     percent of the dollar limitation determined under section 
     305(a)(2) of the Federal Home Loan Mortgage Corporation Act 
     for a residence of the applicable size; and''.
       (b) The first sentence in the matter following section 
     203(b)(2)(B)(iii) of the National Housing Act (12 U.S.C. 
     1709(b)(2)(B)(iii) is amended to read as follows: ``For 
     purposes of the preceding sentence, the term `area' means a 
     metropolitan statistical area as established by the Office of 
     Management and Budget; and the median 1-family house price 
     for an area shall be equal to the median 1-family house price 
     of the county within the area that has the highest such 
     median price.''.


                   HOPE VI Grant for Hollander Ridge

       Sec. 229. If the Secretary rescinds the grant award of 
     $20,000,000 made to the Housing Authority of Baltimore City 
     for development efforts at Hollander Ridge in Baltimore, 
     Maryland, involving funds appropriated for fiscal year 1996 
     under the heading ``Public Housing Demolition, Site 
     Revitalization, and Replacement Housing Grants'', all of the 
     rescinded grant amount shall be recaptured by the Secretary 
     and added to the amounts otherwise available under this 
     heading. If, after the date of any such recapture, the 
     Housing Authority of Baltimore City applies in response to a 
     Notice of Funding Availability issued by the Secretary for a 
     grant from funds available under this heading (not to exceed 
     the amount recaptured) for development efforts at Hollander 
     Ridge, then the Secretary shall grant priority status to such 
     application and approve the grant award if the application 
     meets the terms and criteria stated in the Notice of Funding 
     Availability.


                            Debt Forgiveness

       Sec. 230. The Secretary of Housing and Urban Development 
     shall cancel the indebtedness of the Town of Hobson City, 
     Alabama, relating to a public facilities loan under title II 
     of the Housing Amendments of 1955, issued July 1, 1969 
     (Project No. ALA-01-PFL0139). The Town of Hobson City hereby 
     is relieved of all liability to the Federal Government for 
     the outstanding principal balance on such loan, for the 
     amount

[[Page H9368]]

     of accrued interest on such loan, and for any other fees and 
     charges payable in connection with such loan.


              Consideration of Homeless Grant Application

       Sec. 231. The Secretary shall consider without prejudice 
     the application submitted August 5, 1998 by the City of 
     Wichita and Sedgwick County, Kansas for assistance under the 
     Continuum of Care Homeless Assistance program pursuant to the 
     Notice at 63 Federal Register 23988, 23999 (April 30, 1998) 
     notwithstanding the August 4, 1998 due date for such 
     application, notwithstanding any provision that may be to the 
     contrary in section 102 of the Department of Housing and 
     Urban Development Reform Act of 1989.


                       CDBG Service Cap for Miami

       Sec. 232. Section 105(a)(8) of the Housing and Community 
     Development Act of 1974 is amended by striking ``fiscal year 
     1994'' and all that follows through the end of the paragraph 
     and inserting the following: ``each of fiscal years 1999, 
     2000, and 2001, to the City of Miami, such city may use not 
     more than 25 percent in each fiscal year for activities under 
     this paragraph;''.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                         Salaries and Expenses

       For necessary expenses, not otherwise provided for, of the 
     American Battle Monuments Commission, including the 
     acquisition of land or interest in land in foreign countries; 
     purchases and repair of uniforms for caretakers of national 
     cemeteries and monuments outside of the United States and its 
     territories and possessions; rent of office and garage space 
     in foreign countries; purchase (one for replacement only) and 
     hire of passenger motor vehicles; and insurance of official 
     motor vehicles in foreign countries, when required by law of 
     such countries, $26,431,000, to remain available until 
     expended.

             Chemical Safety and Hazard Investigation Board


                         Salaries and Expenses

       For necessary expenses in carrying out activities pursuant 
     to section 112(r)(6) of the Clean Air Act, including hire of 
     passenger vehicles, and for services authorized by 5 U.S.C. 
     3109, but at rates for individuals not to exceed the per diem 
     equivalent to the maximum rate payable for senior level 
     positions under 5 U.S.C. 5376, $6,500,000: Provided, That the 
     Chemical Safety and Hazard Investigation Board shall have not 
     more than three career Senior Executive Service positions.

                       Department of the Treasury

              Community Development Financial Institutions


              community development financial institutions

                          fund program account

       For grants, loans, and technical assistance to qualifying 
     community development lenders, and administrative expenses of 
     the Fund, including services authorized by 5 U.S.C. 3109, but 
     at rates for individuals not to exceed the per diem rate 
     equivalent to the rate for ES-3, $80,000,000, to remain 
     available until September 30, 2000, of which $12,000,000 may 
     be used for the cost of direct loans, and up to $1,000,000 
     may be used for administrative expenses to carry out the 
     direct loan program: Provided, That the cost of direct loans, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974: Provided further, That these funds are available to 
     subsidize gross obligations for the principal amount of 
     direct loans not to exceed $32,000,000: Provided further, 
     That not more than $25,000,000 of the funds made available 
     under this heading may be used for programs and activities 
     authorized in section 114 of the Community Development 
     Banking and Financial Institutions Act of 1994.

                   Consumer Product Safety Commission


                         salaries and expenses

       For necessary expenses of the Consumer Product Safety 
     Commission, including hire of passenger motor vehicles, 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     maximum rate payable under 5 U.S.C. 5376, purchase of nominal 
     awards to recognize non-Federal officials' contributions to 
     Commission activities, and not to exceed $500 for official 
     reception and representation expenses, $47,000,000.

             Corporation for National and Community Service


                national and community service programs

                           operating expenses

                     (including transfer of funds)

       For necessary expenses for the Corporation for National and 
     Community Service (referred to in the matter under this 
     heading as the ``Corporation'') in carrying out programs, 
     activities, and initiatives under the National and Community 
     Service Act of 1990 (referred to in the matter under this 
     heading as the ``Act'') (42 U.S.C. 12501 et seq.), 
     $425,500,000, to remain available until September 30, 2000: 
     Provided, That not more than $28,500,000 shall be available 
     for administrative expenses authorized under section 
     501(a)(4) of the Act (42 U.S.C. 12671(a)(4)) with not less 
     than $3,000,000 targeted to administrative needs identified 
     as urgent by the Corporation without regard to the provisions 
     of section 501(a)(4)(B) of the Act: Provided further, That 
     not more than $2,500 shall be for official reception and 
     representation expenses: Provided further, That not more than 
     $70,000,000, to remain available without fiscal year 
     limitation, shall be transferred to the National Service 
     Trust account for educational awards authorized under 
     subtitle D of title I of the Act (42 U.S.C. 12601 et seq.), 
     of which not to exceed $5,000,000 shall be available for 
     national service scholarships for high school students 
     performing community service: Provided further, That not more 
     than $227,000,000 of the amount provided under this heading 
     shall be available for grants under the National Service 
     Trust program authorized under subtitle C of title I of the 
     Act (42 U.S.C. 12571 et seq.) (relating to activities 
     including the AmeriCorps program), of which not more than 
     $40,000,000 may be used to administer, reimburse, or support 
     any national service program authorized under section 
     121(d)(2) of such Act (42 U.S.C. 12581(d)(2)): Provided 
     further, That not more than $5,500,000 of the funds made 
     available under this heading shall be made available for the 
     Points of Light Foundation for activities authorized under 
     title III of the Act (42 U.S.C. 12661 et seq.): Provided 
     further, That no funds shall be available for national 
     service programs run by Federal agencies authorized under 
     section 121(b) of such Act (42 U.S.C. 12571(b)): Provided 
     further, That to the maximum extent feasible, funds 
     appropriated under subtitle C of title I of the Act shall be 
     provided in a manner that is consistent with the 
     recommendations of peer review panels in order to ensure that 
     priority is given to programs that demonstrate quality, 
     innovation, replicability, and sustainability: Provided 
     further, That not more than $18,000,000 of the funds made 
     available under this heading shall be available for the 
     Civilian Community Corps authorized under subtitle E of title 
     I of the Act (42 U.S.C. 12611 et seq.): Provided further, 
     That not more than $43,000,000 shall be available for school-
     based and community-based service-learning programs 
     authorized under subtitle B of title I of the Act (42 U.S.C. 
     12521 et seq.): Provided further, That not more than 
     $28,500,000 shall be available for quality and innovation 
     activities authorized under subtitle H of title I of the Act 
     (42 U.S.C. 12853 et seq.): Provided further, That not more 
     than $5,000,000 shall be available for audits and other 
     evaluations authorized under section 179 of the Act (42 
     U.S.C. 12639): Provided further, That to the maximum extent 
     practicable, the Corporation shall increase significantly the 
     level of matching funds and in-kind contributions provided by 
     the private sector, shall expand significantly the number of 
     educational awards provided under subtitle D of title I, and 
     shall reduce the total Federal costs per participant in all 
     programs.


                      Office of Inspector General

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

                       Court of Veterans Appeals


                         Salaries and Expenses

       For necessary expenses for the operation of the United 
     States Court of Veterans Appeals as authorized by 38 U.S.C. 
     7251-7298, $10,195,000, of which $865,000, shall be available 
     for the purpose of providing financial assistance as 
     described, and in accordance with the process and reporting 
     procedures set forth, under this heading in Public Law 102-
     229.

                      Department of Defense--Civil

                       Cemeterial Expenses, Army


                         Salaries and Expenses

       For necessary expenses, as authorized by law, for 
     maintenance, operation, and improvement of Arlington National 
     Cemetery and Soldiers' and Airmen's Home National Cemetery, 
     including the purchase of one passenger motor vehicle for 
     replacement only, and not to exceed $1,000 for official 
     reception and representation expenses, $11,666,000, to remain 
     available until expended.

                    Environmental Protection Agency


                         Science and Technology

                     (including transfer of funds)

       For science and technology, including research and 
     development activities, which shall include research and 
     development activities under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (CERCLA), 
     as amended; necessary expenses for personnel and related 
     costs and travel expenses, including uniforms, or allowances 
     therefore, as authorized by 5 U.S.C. 5901-5902; services as 
     authorized by 5 U.S.C. 3109, but at rates for individuals not 
     to exceed the per diem rate equivalent to the maximum rate 
     payable for senior level positions under 5 U.S.C. 5376; 
     procurement of laboratory equipment and supplies; other 
     operating expenses in support of research and development; 
     construction, alteration, repair, rehabilitation, and 
     renovation of facilities, not to exceed $75,000 per 
     project, $650,000,000, which shall remain available until 
     September 30, 2000: Provided, That the obligated balance 
     of such sums shall remain available through September 30, 
     2007 for liquidating obligations made in fiscal years 1999 
     and 2000.


                 environmental programs and management

       For environmental programs and management, including 
     necessary expenses, not otherwise provided for, for personnel 
     and related costs and travel expenses, including uniforms, or 
     allowances therefore, as authorized by 5 U.S.C. 5901-5902; 
     services as authorized by 5 U.S.C. 3109, but at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     maximum rate payable for senior level positions under 5 
     U.S.C. 5376; hire of passenger motor vehicles; hire, 
     maintenance, and operation of aircraft; purchase of reprints; 
     library memberships in societies or associations which issue 
     publications to members only or at a price to members lower 
     than to subscribers who are not members; construction, 
     alteration, repair, rehabilitation, and renovation of 
     facilities, not to exceed $75,000 per project; and not to 
     exceed $6,000 for official reception and representation 
     expenses, $1,848,000,000, which shall remain available until 
     September 30, 2000: Provided, That the obligated balance of 
     such sums shall remain available through September 30, 2007 
     for liquidating obligations made in fiscal years 1999 and 
     2000: Provided further, That none of the funds appropriated 
     by this Act shall be used to propose or

[[Page H9369]]

     issue rules, regulations, decrees, or orders for the purpose 
     of implementation, or in preparation for implementation, of 
     the Kyoto Protocol which was adopted on December 11, 1997, in 
     Kyoto, Japan at the Third Conference of the Parties to the 
     United Nations Framework Convention on Climate Change, which 
     has not been submitted to the Senate for advice and consent 
     to ratification pursuant to article II, section 2, clause 2, 
     of the United States Constitution, and which has not entered 
     into force pursuant to article 25 of the Protocol: Provided 
     further, That none of the funds made available in this Act 
     may be used to implement or administer the interim guidance 
     issued on February 5, 1998 by the Environmental Protection 
     Agency relating to title VI of the Civil Rights Act of 1964 
     and designated as the ``Interim Guidance for Investigating 
     Title VI Administrative Complaints Challenging Permits'' with 
     respect to complaints filed under such title after the date 
     of enactment of this Act and until guidance is finalized. 
     Nothing in this proviso may be construed to restrict the 
     Environmental Protection Agency from developing or issuing 
     final guidance relating to title VI of the Civil Rights Act 
     of 1964.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, and for construction, alteration, 
     repair, rehabilitation, and renovation of facilities, not to 
     exceed $75,000 per project, $31,154,000, to remain available 
     until September 30, 2000: Provided, That the obligated 
     balance of such sums shall remain available through September 
     30, 2007 for liquidating obligations made in fiscal years 
     1999 and 2000.


                        Buildings and Facilities

       For construction, repair, improvement, extension, 
     alteration, and purchase of fixed equipment or facilities of, 
     or for use by, the Environmental Protection Agency, 
     $56,948,000, to remain available until expended.


                     Hazardous Substance Superfund

                     (including transfers of funds)

       For necessary expenses to carry out the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (CERCLA), as amended, including sections 111(c)(3), 
     (c)(5), (c)(6), and (e)(4) (42 U.S.C. 9611), and for 
     construction, alteration, repair, rehabilitation, and 
     renovation of facilities, not to exceed $75,000 per 
     project; not to exceed $1,500,000,000, consisting of 
     $650,000,000 as appropriated under this heading in Public 
     Law 105-65, notwithstanding the second proviso under this 
     heading of said Act, and not to exceed $850,000,000 (of 
     which $100,000,000 shall not become available until 
     September 1, 1999), all of which is to remain available 
     until expended, consisting of $1,175,000,000, as 
     authorized by section 517(a) of the Superfund Amendments 
     and Reauthorization Act of 1986 (SARA), as amended by 
     Public Law 101-508, and $325,000,000 as a payment from 
     general revenues to the Hazardous Substance Superfund for 
     purposes as authorized by section 517(b) of SARA, as 
     amended by Public Law 101-508: Provided, That funds 
     appropriated under this heading may be allocated to other 
     Federal agencies in accordance with section 111(a) of 
     CERCLA: Provided further, That $12,237,000 of the funds 
     appropriated under this heading shall be transferred to 
     the ``Office of Inspector General'' appropriation to 
     remain available until September 30, 2000: Provided 
     further, That notwithstanding section 111(m) of CERCLA or 
     any other provision of law, $76,000,000 of the funds 
     appropriated under this heading shall be available to the 
     Agency for Toxic Substances and Disease Registry to carry 
     out activities described in sections 104(i), 111(c)(4), 
     and 111(c)(14) of CERCLA and section 118(f) of SARA: 
     Provided further, That $40,000,000 of the funds 
     appropriated under this heading shall be transferred to 
     the ``Science and Technology'' appropriation to remain 
     available until September 30, 2000: Provided further, That 
     none of the funds appropriated under this heading shall be 
     available for the Agency for Toxic Substances and Disease 
     Registry to issue in excess of 40 toxicological profiles 
     pursuant to section 104(i) of CERCLA during fiscal year 
     1999: Provided further, That an additional amount, 
     $650,000,000, shall become available for obligation on 
     October 1, 1999, only upon enactment by August 1, 1999, of 
     specific legislation which reauthorizes the Superfund 
     program: Provided further, That if such reauthorization 
     does not occur on or before August 1, 1999, such 
     additional amount to be made available on October 1, 1999, 
     is rescinded and the Congressional Budget Office is 
     directed to make the appropriate scorekeeping adjustment 
     no later than August 5, 1999.
       Section 119(e)(2)(C) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980, as 
     amended, (42 U.S.C. 9619(e)(2)(C)) is amended by deleting ``, 
     and before January 1, 1996''.
       Section 119(g)(5) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980, as 
     amended, (42 U.S.C. 9619(g)(5)) is amended by deleting ``, or 
     after December 31, 1995''.


                Leaking Underground Storage Tank program

       For necessary expenses to carry out leaking underground 
     storage tank cleanup activities authorized by section 205 of 
     the Superfund Amendments and Reauthorization Act of 1986, and 
     for the uses authorized under section 9004(f) of the Solid 
     Waste Disposal Act, and for construction, alteration, repair, 
     rehabilitation, and renovation of facilities, not to exceed 
     $75,000 per project, $72,500,000, to remain available until 
     expended: Provided, That hereafter, the Administrator is 
     authorized to enter into assistance agreements with Federally 
     recognized Indian tribes on such terms and conditions as the 
     Administrator deems appropriate for the same purposes as are 
     set forth in section 9003(h)(7) of the Resource Conservation 
     and Recovery Act.


                           oil spill response

                     (including transfer of funds)

       For expenses necessary to carry out the Environmental 
     Protection Agency's responsibilities under the Oil Pollution 
     Act of 1990, $15,000,000, to be derived from the Oil Spill 
     Liability trust fund, and to remain available until expended.


                   state and tribal assistance grants

       For environmental programs and infrastructure assistance, 
     including capitalization grants for State revolving funds and 
     performance partnership grants, $3,386,750,000, to remain 
     available until expended, of which $1,350,000,000 shall be 
     for making capitalization grants for the Clean Water State 
     Revolving Funds under title VI of the Federal Water Pollution 
     Control Act, as amended, and $775,000,000 shall be for 
     capitalization grants for the Drinking Water State Revolving 
     Funds under section 1452 of the Safe Drinking Water Act, as 
     amended except that, notwithstanding section 1452(n) of the 
     Safe Drinking Water Act, as amended, none of the funds made 
     available under this heading in this Act, or in previous 
     appropriations acts, shall be reserved by the Administrator 
     for health effects studies on drinking water contaminants, 
     $50,000,000 for architectural, engineering, planning, design, 
     construction and related activities in connection with the 
     construction of high priority water and wastewater facilities 
     in the area of the United States-Mexico Border, after 
     consultation with the appropriate border commission, 
     $30,000,000 for grants to the State of Alaska to address 
     drinking water and wastewater infrastructure needs of rural 
     and Alaska Native Villages, $301,750,000 for making grants 
     for the construction of wastewater and water treatment 
     facilities and groundwater protection infrastructure in 
     accordance with the terms and conditions specified for such 
     grants in the joint explanatory statement of the committee of 
     conference accompanying this Act (H.R. 4194); and 
     $880,000,000 for grants, including associated program support 
     costs, to States, federally recognized tribes, interstate 
     agencies, tribal consortia, and air pollution control 
     agencies for multi-media or single media pollution 
     prevention, control and abatement and related activities, 
     including activities pursuant to the provisions set forth 
     under this heading in Public Law 104-134, and for making 
     grants under section 103 of the Clean Air Act for particulate 
     matter monitoring and data collection activities: Provided, 
     That, consistent with section 1452(g) of the Safe Drinking 
     Water Act (42 U.S.C. 300j-12(g)), section 302 of the Safe 
     Drinking Water Act Amendments of 1996 (Public Law 104-182) 
     and the accompanying joint explanatory statement of the 
     committee of conference (H. Rept. No. 104-741 to accompany S. 
     1316, the Safe Drinking Water Act Amendments of 1996), and 
     notwithstanding any other provision of law, beginning in 
     fiscal year 1999 and thereafter, States may combine the 
     assets of State Revolving Funds (SRFs) established under 
     section 1452 of the Safe Drinking Water Act, as amended, and 
     title VI of the Federal Water Pollution Control Act, as 
     amended, as security for bond issues to enhance the lending 
     capacity of one or both SRFs, but not to acquire the state 
     match for either program, provided that revenues from the 
     bonds are allocated to the purposes of the Safe Drinking 
     Water Act and the Federal Water Pollution Control Act in the 
     same portion as the funds are used as security for the bonds: 
     Provided further, That, notwithstanding the matching 
     requirement in Public Law 104-204 for funds appropriated 
     under this heading for grants to the State of Texas for 
     improving wastewater treatment for the Colonias, such funds 
     that remain unobligated may also be used for improving water 
     treatment for the Colonias, and shall be matched by State 
     funds from State resources equal to 20 percent of such 
     unobligated funds: Provided further, That, hereafter the 
     Administrator is authorized to enter into assistance 
     agreements with Federally recognized Indian tribes on such 
     terms and conditions as the Administrator deems appropriate 
     for the development and implementation of programs to manage 
     hazardous waste, and underground storage tanks: Provided 
     further, That beginning in fiscal year 1999 and thereafter, 
     pesticide program implementation grants under section 
     23(a)(1) of the Federal Insecticide, Fungicide and 
     Rodenticide Act, as amended, shall be available for pesticide 
     program development and implementation, including enforcement 
     and compliance activities: Provided further, That, 
     notwithstanding section 603(d)(7) of the Federal Water 
     Pollution Control Act, as amended, the limitation on the 
     amounts in a State water pollution control revolving fund 
     that may be used by a State to administer the fund shall 
     not apply to amounts included as principal in loans made 
     by such fund in fiscal year 1999 and prior years where 
     such amounts represent costs of administering the fund, to 
     the extent that such amounts are or were deemed reasonable 
     by the Administrator, accounted for separately from other 
     assets in the fund, and used for eligible purposes of the 
     fund, including administration.


                          working capital fund

       Under this heading in Public Law 104-204, after the phrase, 
     ``that such fund shall be paid in advance'', insert ``or 
     reimbursed''.


                        ADMINISTRATIVE PROVISION

       Not later than March 31, 1999, the Administrator of the 
     Environmental Protection Agency shall issue regulations 
     amending 40 C.F.R. 112 to comply with the requirements of the 
     Edible Oil Regulatory Reform Act (Public Law 104-55). Such 
     regulations shall differentiate between and establish 
     separate classes for animal fats and oils and greases, and 
     fish and marine mammal oils (as described in that Act), and 
     other oils and greases, and shall apply standards to such 
     different classes of fats and oils based on differences in 
     the physical, chemical, biological, and other properties, and 
     in the environmental

[[Page H9370]]

     effects, of the classes. None of the funds made available by 
     this Act or in subsequent Acts may be used by the 
     Environmental Protection Agency to issue or to establish an 
     interpretation or guidance relating to fats, oils, and 
     greases (as described in Public Law 104-55) that does not 
     comply with the requirements of the Edible Oil Regulatory 
     Reform Act.

                   Executive Office of the President


                office of science and technology policy

       For necessary expenses of the Office of Science and 
     Technology Policy, in carrying out the purposes of the 
     National Science and Technology Policy, Organization, and 
     Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire of 
     passenger motor vehicles, and services as authorized by 5 
     U.S.C. 3109, not to exceed $2,500 for official reception and 
     representation expenses, and rental of conference rooms in 
     the District of Columbia, $5,026,000.


  council on environmental quality and office of environmental quality

       For necessary expenses to continue functions assigned to 
     the Council on Environmental Quality and Office of 
     Environmental Quality pursuant to the National Environmental 
     Policy Act of 1969, the Environmental Quality Improvement Act 
     of 1970, and Reorganization Plan No. 1 of 1977, $2,675,000: 
     Provided, That, notwithstanding any other provision of law, 
     no funds other than those appropriated under this heading, 
     shall be used for or by the Council on Environmental Quality 
     and Office of Environmental Quality: Provided further, That 
     notwithstanding section 202 of the National Environmental 
     Policy Act of 1970, the Council shall consist of one member, 
     appointed by the President, by and with the advice and 
     consent of the Senate, serving as Chairman and exercising all 
     powers, functions, and duties of the Council.

                 Federal Deposit Insurance Corporation


                      office of inspector general

                     (including transfer of funds)

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $34,666,000, to be derived from the Bank 
     Insurance Fund, the Savings Association Insurance Fund, and 
     the FSLIC Resolution Fund.

                  Federal Emergency Management Agency


                            disaster relief

       For necessary expenses in carrying out the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), $307,745,000, and, notwithstanding 42 
     U.S.C. 5203, to remain available until expended: Provided, 
     That of the funds made available under this heading in this 
     and prior Appropriations Acts which are eligible for grants 
     to the State of California under section 404 of the Stafford 
     Disaster Relief and Emergency Assistance Act, $5,000,000 
     shall be for a pilot project of seismic retrofit technology 
     at California State University, San Bernardino, $5,000,000 
     shall be for seismic retrofit at the San Bernardino County 
     Courthouse, and $30,000,000 shall be for a project at the 
     Loma Linda University Medical Center hospital using laser 
     technology demonstrating non-disruptive retrofitting.


            disaster assistance direct loan program account

       For the cost of direct loans, $1,355,000, as authorized by 
     section 319 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974, as amended: Provided further, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans not to exceed $25,000,000.
       In addition, for administrative expenses to carry out the 
     direct loan program, $440,000.


                         salaries and expenses

       For necessary expenses, not otherwise provided for, 
     including hire and purchase of motor vehicles as authorized 
     by 31 U.S.C. 1343; uniforms, or allowances therefor, as 
     authorized by 5 U.S.C. 5901-5902; services as authorized by 5 
     U.S.C. 3109, but at rates for individuals not to exceed the 
     per diem rate equivalent to the maximum rate payable for 
     senior level positions under 5 U.S.C. 5376; expenses of 
     attendance of cooperating officials and individuals at 
     meetings concerned with the work of emergency preparedness; 
     transportation in connection with the continuity of 
     Government programs to the same extent and in the same manner 
     as permitted the Secretary of a Military Department under 10 
     U.S.C. 2632; and not to exceed $2,500 for official reception 
     and representation expenses, $171,138,000.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $5,400,000.


              emergency management planning and assistance

       For necessary expenses, not otherwise provided for, to 
     carry out activities under the National Flood Insurance Act 
     of 1968, as amended, and the Flood Disaster Protection Act of 
     1973, as amended (42 U.S.C. 4001 et seq.), the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of 
     1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire 
     Prevention and Control Act of 1974, as amended (15 U.S.C. 
     2201 et seq.), the Defense Production Act of 1950, as amended 
     (50 U.S.C. App. 2061 et seq.), sections 107 and 303 of the 
     National Security Act of 1947, as amended (50 U.S.C. 404-
     405), and Reorganization Plan No. 3 of 1978, $240,824,000: 
     Provided, That for purposes of pre-disaster mitigation 
     pursuant to 42 U.S.C. 5131 (b) and (c) and 42 U.S.C. 5196 (e) 
     and (i), $25,000,000 of the funds made available under this 
     heading shall be available until expended for project grants: 
     Provided further, That the United States Fire Administration 
     shall conduct a 12-month pilot project to promote the 
     installation and maintenance of smoke detectors in the 
     localities of highest risk for residential fires: Provided 
     further, That the United States Fire Administration shall 
     transmit the results of its pilot project to the Consumer 
     Product Safety Commission and the Congress.


                Radiological Emergency Preparedness Fund

       There is hereby established in the Treasury a Radiological 
     Emergency Preparedness Fund, which shall be available under 
     the Atomic Energy Act of 1954, as amended, and Executive 
     Order 12657, for offsite radiological emergency planning, 
     preparedness, and response. Beginning in fiscal year 1999 and 
     thereafter, the Director of the Federal Emergency Management 
     Agency (FEMA) shall promulgate through rulemaking fees to be 
     assessed and collected, applicable to persons subject to 
     FEMA's radiological emergency preparedness regulations. The 
     aggregate charges assessed pursuant to this section during 
     fiscal year 1999 shall not be less than 100 percent of the 
     amounts anticipated by FEMA necessary for its radiological 
     emergency preparedness program for such fiscal year. The 
     methodology for assessment and collection of fees shall be 
     fair and equitable; and shall reflect costs of providing such 
     services, including administrative costs of collecting such 
     fees. Fees received pursuant to this section shall be 
     deposited in the Fund as offsetting collections and will 
     become available for authorized purposes on October 1, 1999, 
     and remain available until expended.
       For necessary expenses of the Fund for fiscal year 1999, 
     $12,849,000, to remain available until expended.


                   emergency food and shelter program

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


                     national flood insurance fund

                     (including transfer of funds)

       For activities under the National Flood Insurance Act of 
     1968, the Flood Disaster Protection Act of 1973, as amended, 
     not to exceed $22,685,000 for salaries and expenses 
     associated with flood mitigation and flood insurance 
     operations, and not to exceed $78,464,000 for flood 
     mitigation, including up to $20,000,000 for expenses under 
     section 1366 of the National Flood Insurance Act, which 
     amount shall be available for transfer to the National 
     Flood Mitigation Fund until September 30, 2000. In fiscal 
     year 1999, no funds in excess of: (1) $47,000,000 for 
     operating expenses; (2) $343,989,000 for agents' 
     commissions and taxes; and (3) $60,000,000 for interest on 
     Treasury borrowings shall be available from the National 
     Flood Insurance Fund without prior notice to the 
     Committees on Appropriations. For fiscal year 1999, flood 
     insurance rates shall not exceed the level authorized by 
     the National Flood Insurance Reform Act of 1994.
       Section 1309(a)(2) of the National Flood Insurance Act (42 
     U.S.C. 4016(a)(2)), as amended by Public Law 104-208, is 
     further amended by striking ``1998'' and inserting ``1999''.
       Section 1319 of the National Flood Insurance Act of 1968, 
     as amended (42 U.S.C. 4026), is amended by striking 
     ``September 30, 1998'' and inserting ``September 30, 1999''.
       Section 1336 of the National Flood Insurance Act of 1968, 
     as amended (42 U.S.C. 4056), is amended by striking 
     ``September 30, 1998'' and inserting ``September 30, 1999''.
       The first sentence of section 1376(c) of the National Flood 
     Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is 
     amended by striking ``September 30, 1998'' and inserting 
     ``September 30, 1999''.

                    General Services Administration


                    consumer information center fund

       For necessary expenses of the Consumer Information Center, 
     including services authorized by 5 U.S.C. 3109, $2,619,000, 
     to be deposited into the Consumer Information Center Fund: 
     Provided, That the appropriations, revenues and collections 
     deposited into the fund shall be available for necessary 
     expenses of Consumer Information Center activities in the 
     aggregate amount of $7,500,000. Appropriations, revenues, and 
     collections accruing to this fund during fiscal year 1999 in 
     excess of $7,500,000 shall remain in the fund and shall not 
     be available for expenditure except as authorized in 
     appropriations Acts.

             National Aeronautics and Space Administration


                           human space flight

       For necessary expenses, not otherwise provided for, in the 
     conduct and support of human space flight research and 
     development activities, including research, development, 
     operations, and services; maintenance; construction of 
     facilities including repair, rehabilitation, and modification 
     of real and personal property, and acquisition or 
     condemnation of real property, as authorized by law; space 
     flight, spacecraft control and communications activities 
     including operations, production, and services; and purchase, 
     lease, charter, maintenance and operation of mission and 
     administrative aircraft, $5,480,000,000, to remain available 
     until September 30, 2000.


                  science, aeronautics and technology

       For necessary expenses, not otherwise provided for, in the 
     conduct and support of science, aeronautics and technology 
     research and development activities, including research, 
     development, operations, and services; maintenance; 
     construction of facilities including repair, rehabilitation, 
     and modification of real and personal property, and 
     acquisition or condemnation of real property, as authorized 
     by law; space flight, spacecraft control and communications 
     activities including operations, production, and

[[Page H9371]]

     services; and purchase, lease, charter, maintenance and 
     operation of mission and administrative aircraft, 
     $5,653,900,000, to remain available until September 30, 2000: 
     Provided, That none of the funds provided under this heading 
     may be utilized to support the development or operations of 
     the International Space Station: Provided further, That this 
     limitation shall not preclude the use of funds provided under 
     this heading for the conduct of science, aeronautics, space 
     transportation and technology activities utilizing or enabled 
     by the International Space Station.


                            mission support

       For necessary expenses, not otherwise provided for, in 
     carrying out mission support for human space flight programs 
     and science, aeronautical, and technology programs, including 
     research operations and support; space communications 
     activities including operations, production and services; 
     maintenance; construction of facilities including repair, 
     rehabilitation, and modification of facilities, minor 
     construction of new facilities and additions to existing 
     facilities, facility planning and design, environmental 
     compliance and restoration, and acquisition or condemnation 
     of real property, as authorized by law; program management; 
     personnel and related costs, including uniforms or allowances 
     therefor, as authorized by 5 U.S.C. 5901-5902; travel 
     expenses; purchase, lease, charter, maintenance, and 
     operation of mission and administrative aircraft; not to 
     exceed $35,000 for official reception and representation 
     expenses; and purchase (not to exceed 33 for replacement 
     only) and hire of passenger motor vehicles, $2,511,100,000, 
     to remain available until September 30, 2000.


                      OFFICE OF INSPECTOR GENERAL

       For necessary expenses of the Office of Inspector General 
     in carrying out the Inspector General Act of 1978, as 
     amended, $20,000,000.


                       administrative provisions

       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Human space flight'', ``Science, 
     aeronautics and technology'', or ``Mission support'' by this 
     appropriations Act, when any activity has been initiated by 
     the incurrence of obligations for construction of facilities 
     as authorized by law, such amount available for such activity 
     shall remain available until expended. This provision does 
     not apply to the amounts appropriated in ``Mission support'' 
     pursuant to the authorization for repair, rehabilitation and 
     modification of facilities, minor construction of new 
     facilities and additions to existing facilities, and facility 
     planning and design.
       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Human space flight'', ``Science, 
     aeronautics and technology'', or ``Mission support'' by this 
     appropriations Act, the amounts appropriated for construction 
     of facilities shall remain available until September 30, 
     2001.
       Notwithstanding the limitation on the availability of funds 
     appropriated for ``Mission support'' and ``Office of 
     Inspector General'', amounts made available by this Act for 
     personnel and related costs and travel expenses of the 
     National Aeronautics and Space Administration shall remain 
     available until September 30, 1999 and may be used to enter 
     into contracts for training, investigations, costs associated 
     with personnel relocation, and for other services, to be 
     provided during the next fiscal year.
       NASA shall develop a revised appropriation structure for 
     submission in the fiscal year 2000 budget request consisting 
     of five appropriations accounts (International Space Station; 
     Launch Vehicles and Payload Operations; Science, Aeronautics 
     and Technology; Mission Support; and Office of Inspector 
     General).

                  National Credit Union Administration


                       central liquidity facility

       During fiscal year 1999, gross obligations of the Central 
     Liquidity Facility for the principal amount of new direct 
     loans to member credit unions, as authorized by the National 
     Credit Union Central Liquidity Facility Act (12 U.S.C. 1795), 
     shall not exceed $600,000,000: Provided, That administrative 
     expenses of the Central Liquidity Facility in fiscal year 
     1999 shall not exceed $176,000: Provided further, That 
     $2,000,000, together with amounts of principal and interest 
     on loans repaid, to be available until expended, is available 
     for loans to community development credit unions.

                      National Science Foundation


                    Research and Related Activities

       For necessary expenses in carrying out the National Science 
     Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and 
     the Act to establish a National Medal of Science (42 U.S.C. 
     1880-1881); services as authorized by 5 U.S.C. 3109; 
     maintenance and operation of aircraft and purchase of flight 
     services for research support; acquisition of aircraft, 
     $2,770,000,000, of which not to exceed $257,460,000, shall 
     remain available until expended for Polar research and 
     operations support, and for reimbursement to other Federal 
     agencies for operational and science support and logistical 
     and other related activities for the United States Antarctic 
     program; the balance to remain available until September 30, 
     2000: Provided, That receipts for scientific support services 
     and materials furnished by the National Research Centers and 
     other National Science Foundation supported research 
     facilities may be credited to this appropriation: Provided 
     further, That to the extent that the amount appropriated is 
     less than the total amount authorized to be appropriated for 
     included program activities, all amounts, including floors 
     and ceilings, specified in the authorizing Act for those 
     program activities or their subactivities shall be reduced 
     proportionally: Provided further, That none of the funds 
     appropriated or otherwise made available to the National 
     Science Foundation in this or any prior Act may be obligated 
     or expended by the National Science Foundation to enter into 
     or extend a grant, contract, or cooperative agreement for the 
     support of administering the domain name and numbering system 
     of the Internet after September 30, 1998.


                        Major Research Equipment

       For necessary expenses of major construction projects 
     pursuant to the National Science Foundation Act of 1950, as 
     amended, $90,000,000, to remain available until expended.


                     Education and Human Resources

       For necessary expenses in carrying out science and 
     engineering education and human resources programs and 
     activities pursuant to the National Science Foundation Act of 
     1950, as amended (42 U.S.C. 1861-1875), including services as 
     authorized by 5 U.S.C. 3109 and rental of conference rooms in 
     the District of Columbia, $662,000,000, to remain available 
     until September 30, 2000: Provided, That to the extent that 
     the amount of this appropriation is less than the total 
     amount authorized to be appropriated for included program 
     activities, all amounts, including floors and ceilings, 
     specified in the authorizing Act for those program activities 
     or their subactivities shall be reduced proportionally: 
     Provided further, That the Alliances for Minority 
     Participation Program is renamed the Louis Stokes Alliances 
     for Minority Participation Program.


                         Salaries and Expenses

       For salaries and expenses necessary in carrying out the 
     National Science Foundation Act of 1950, as amended (42 
     U.S.C. 1861-1875); services authorized by 5 U.S.C. 3109; hire 
     of passenger motor vehicles; not to exceed $9,000 for 
     official reception and representation expenses; uniforms or 
     allowances therefor, as authorized by 5 U.S.C. 5901-5902; 
     rental of conference rooms in the District of Columbia; 
     reimbursement of the General Services Administration for 
     security guard services; $144,000,000: Provided, That 
     contracts may be entered into under ``Salaries and expenses'' 
     in fiscal year 1999 for maintenance and operation of 
     facilities, and for other services, to be provided during the 
     next fiscal year.


                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     as authorized by the Inspector General Act of 1978, as 
     amended, $5,200,000, to remain available until September 30, 
     2000.

                 Neighborhood Reinvestment Corporation


          Payment to the Neighborhood Reinvestment Corporation

       For payment to the Neighborhood Reinvestment Corporation 
     for use in neighborhood reinvestment activities, as 
     authorized by the Neighborhood Reinvestment Corporation Act 
     (42 U.S.C. 8101-8107), $90,000,000: Provided, That 
     $25,000,000 shall be for a pilot homeownership initiative, 
     including an evaluation by an independent third party to 
     determine its effectiveness.

                        Selective Service System


                         Salaries and Expenses

       For necessary expenses of the Selective Service System, 
     including expenses of attendance at meetings and of training 
     for uniformed personnel assigned to the Selective Service 
     System, as authorized by 5 U.S.C. 4101-4118 for civilian 
     employees; and not to exceed $1,000 for official reception 
     and representation expenses, $24,176,000: Provided, That 
     during the current fiscal year, the President may exempt this 
     appropriation from the provisions of 31 U.S.C. 1341, whenever 
     he deems such action to be necessary in the interest of 
     national defense: Provided further, That none of the funds 
     appropriated by this Act may be expended for or in connection 
     with the induction of any person into the Armed Forces of the 
     United States.

                      TITLE IV--GENERAL PROVISIONS

       Sec. 401. Where appropriations in titles I, II, and III of 
     this Act are expendable for travel expenses and no specific 
     limitation has been placed thereon, the expenditures for such 
     travel expenses may not exceed the amounts set forth 
     therefore in the budget estimates submitted for the 
     appropriations: Provided, That this provision does not apply 
     to accounts that do not contain an object classification for 
     travel: Provided further, That this section shall not apply 
     to travel performed by uncompensated officials of local 
     boards and appeal boards of the Selective Service System; to 
     travel performed directly in connection with care and 
     treatment of medical beneficiaries of the Department of 
     Veterans Affairs; to travel performed in connection with 
     major disasters or emergencies declared or determined by the 
     President under the provisions of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act; to travel 
     performed by the Offices of Inspector General in connection 
     with audits and investigations; or to payments to interagency 
     motor pools where separately set forth in the budget 
     schedules: Provided further, That if appropriations in titles 
     I, II, and III exceed the amounts set forth in budget 
     estimates initially submitted for such appropriations, the 
     expenditures for travel may correspondingly exceed the 
     amounts therefore set forth in the estimates in the same 
     proportion.
       Sec. 402. Appropriations and funds available for the 
     administrative expenses of the Department of Housing and 
     Urban Development and the Selective Service System shall be 
     available in the current fiscal year for purchase of 
     uniforms, or allowances therefor, as authorized by 5 U.S.C. 
     5901-5902; hire of passenger motor vehicles; and services as 
     authorized by 5 U.S.C. 3109.
       Sec. 403. Funds of the Department of Housing and Urban 
     Development subject to the Government Corporation Control Act 
     or section 402 of the Housing Act of 1950 shall be available, 
     without regard to the limitations on administrative expenses, 
     for legal services on a contract or fee basis, and for 
     utilizing and making payment for services and facilities of 
     Federal National Mortgage Association, Government National 
     Mortgage Association, Federal Home Loan Mortgage

[[Page H9372]]

     Corporation, Federal Financing Bank, Federal Reserve banks or 
     any member thereof, Federal Home Loan banks, and any insured 
     bank within the meaning of the Federal Deposit Insurance 
     Corporation Act, as amended (12 U.S.C. 1811-1831).
       Sec. 404. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 405. No funds appropriated by this Act may be 
     expended--
       (1) pursuant to a certification of an officer or employee 
     of the United States unless--
       (A) such certification is accompanied by, or is part of, a 
     voucher or abstract which describes the payee or payees and 
     the items or services for which such expenditure is being 
     made; or
       (B) the expenditure of funds pursuant to such 
     certification, and without such a voucher or abstract, is 
     specifically authorized by law; and
       (2) unless such expenditure is subject to audit by the 
     General Accounting Office or is specifically exempt by law 
     from such audit.
       Sec. 406. None of the funds provided in this Act to any 
     department or agency may be expended for the transportation 
     of any officer or employee of such department or agency 
     between their domicile and their place of employment, with 
     the exception of any officer or employee authorized such 
     transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
       Sec. 407. None of the funds provided in this Act may be 
     used for payment, through grants or contracts, to recipients 
     that do not share in the cost of conducting research 
     resulting from proposals not specifically solicited by the 
     Government: Provided, That the extent of cost sharing by the 
     recipient shall reflect the mutuality of interest of the 
     grantee or contractor and the Government in the research.
       Sec. 408. None of the funds in this Act may be used, 
     directly or through grants, to pay or to provide 
     reimbursement for payment of the salary of a consultant 
     (whether retained by the Federal Government or a grantee) at 
     more than the daily equivalent of the rate paid for level IV 
     of the Executive Schedule, unless specifically authorized by 
     law.
       Sec. 409. None of the funds provided in this Act shall be 
     used to pay the expenses of, or otherwise compensate, non-
     Federal parties intervening in regulatory or adjudicatory 
     proceedings. Nothing herein affects the authority of the 
     Consumer Product Safety Commission pursuant to section 7 of 
     the Consumer Product Safety Act (15 U.S.C. 2056 et seq.).
       Sec. 410. Except as otherwise provided under existing law, 
     or under an existing Executive Order issued pursuant to an 
     existing law, the obligation or expenditure of any 
     appropriation under this Act for contracts for any consulting 
     service shall be limited to contracts which are: (1) a matter 
     of public record and available for public inspection; and (2) 
     thereafter included in a publicly available list of all 
     contracts entered into within twenty-four months prior to the 
     date on which the list is made available to the public and of 
     all contracts on which performance has not been completed by 
     such date. The list required by the preceding sentence shall 
     be updated quarterly and shall include a narrative 
     description of the work to be performed under each such 
     contract.
       Sec. 411. Except as otherwise provided by law, no part of 
     any appropriation contained in this Act shall be obligated or 
     expended by any executive agency, as referred to in the 
     Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
     seq.), for a contract for services unless such executive 
     agency: (1) has awarded and entered into such contract in 
     full compliance with such Act and the regulations promulgated 
     thereunder; and (2) requires any report prepared pursuant to 
     such contract, including plans, evaluations, studies, 
     analyses and manuals, and any report prepared by the agency 
     which is substantially derived from or substantially includes 
     any report prepared pursuant to such contract, to contain 
     information concerning: (A) the contract pursuant to which 
     the report was prepared; and (B) the contractor who prepared 
     the report pursuant to such contract.
       Sec. 412. Except as otherwise provided in section 406, none 
     of the funds provided in this Act to any department or agency 
     shall be obligated or expended to provide a personal cook, 
     chauffeur, or other personal servants to any officer or 
     employee of such department or agency.
       Sec. 413. None of the funds provided in this Act to any 
     department or agency shall be obligated or expended to 
     procure passenger automobiles as defined in 15 U.S.C. 2001 
     with an EPA estimated miles per gallon average of less than 
     22 miles per gallon.
       Sec. 414. None of the funds appropriated in title I of this 
     Act shall be used to enter into any new lease of real 
     property if the estimated annual rental is more than $300,000 
     unless the Secretary submits, in writing, a report to the 
     Committees on Appropriations of the Congress and a period of 
     30 days has expired following the date on which the report is 
     received by the Committees on Appropriations.
       Sec. 415. (a) It is the sense of the Congress that, to the 
     greatest extent practicable, all equipment and products 
     purchased with funds made available in this Act should be 
     American-made.
       (b) In providing financial assistance to, or entering into 
     any contract with, any entity using funds made available in 
     this Act, the head of each Federal agency, to the greatest 
     extent practicable, shall provide to such entity a notice 
     describing the statement made in subsection (a) by the 
     Congress.
       Sec. 416. None of the funds appropriated in this Act may be 
     used to implement any cap on reimbursements to grantees for 
     indirect costs, except as published in Office of Management 
     and Budget Circular A-21.
       Sec. 417. Such sums as may be necessary for fiscal year 
     1999 pay raises for programs funded by this Act shall be 
     absorbed within the levels appropriated in this Act.
       Sec. 418. None of the funds made available in this Act may 
     be used for any program, project, or activity, when it is 
     made known to the Federal entity or official to which the 
     funds are made available that the program, project, or 
     activity is not in compliance with any Federal law relating 
     to risk assessment, the protection of private property 
     rights, or unfunded mandates.
       Sec. 419. Corporations and agencies of the Department of 
     Housing and Urban Development which are subject to the 
     Government Corporation Control Act, as amended, are hereby 
     authorized to make such expenditures, within the limits of 
     funds and borrowing authority available to each such 
     corporation or agency and in accord with law, and to make 
     such contracts and commitments without regard to fiscal year 
     limitations as provided by section 104 of the Act as may be 
     necessary in carrying out the programs set forth in the 
     budget for 1999 for such corporation or agency except as 
     hereinafter provided: Provided, That collections of these 
     corporations and agencies may be used for new loan or 
     mortgage purchase commitments only to the extent expressly 
     provided for in this Act (unless such loans are in support of 
     other forms of assistance provided for in this or prior 
     appropriations Acts), except that this proviso shall not 
     apply to the mortgage insurance or guaranty operations of 
     these corporations, or where loans or mortgage purchases are 
     necessary to protect the financial interest of the United 
     States Government.
       Sec. 420. Notwithstanding section 320(g) of the Federal 
     Water Pollution Control Act (33 U.S.C. 1330(g)), funds made 
     available pursuant to authorization under such section for 
     fiscal year 1999 and prior fiscal years may be used for 
     implementing comprehensive conservation and management plans.
       Sec. 421. Notwithstanding any other provision of law, the 
     term ``qualified student loan'' with respect to national 
     service education awards shall mean any loan made directly to 
     a student by the Alaska Commission on Postsecondary 
     Education, in addition to other meanings under section 
     148(b)(7) of the National and Community Service Act.
       Sec. 422. Notwithstanding any other law, funds made 
     available by this or any other Act or previous Acts for the 
     United States/Mexico Foundation for Science may be used for 
     the endowment of such Foundation.
       Sec. 423. (a) Within 90 days of enactment of this Act, the 
     Consumer Product Safety Commission shall make all necessary 
     arrangements for the Committee on Toxicology of the National 
     Academy of Sciences (NAS) to conduct an independent 12-month 
     study of the potential toxicologic risks of all flame-
     retardant chemicals identified by the NAS and the Commission 
     as likely candidates for use in residential upholstered 
     furniture for the purpose of meeting regulations proposed by 
     the Commission for flame resistance of residential 
     upholstered furniture.
       (b) Upon completion of its report, the Academy shall send 
     the report to the Commission, which shall provide it to the 
     Congress.
       (c) The Commission, before promulgating any notice of 
     proposed rulemaking or final rulemaking setting flammability 
     standards for residential upholstered furniture, shall 
     consider fully the findings and conclusions of the Academy.
       Sec. 424. None of the funds made available in this Act may 
     be used for researching methods to reduce methane emissions 
     from cows, sheep, or any other ruminant livestock.
       Sec. 425. None of the funds made available in this Act may 
     be used to carry out Executive Order No. 13083.
       Sec. 426. Unless otherwise provided for in this Act, no 
     part of any appropriation for the Department of Housing and 
     Urban Development shall be available for any activity in 
     excess of amounts set forth in the budget estimates submitted 
     for the appropriations.
       Sec. 427. National Fallen Firefighters Foundation. (a) 
     Establishment and Purposes.--Section 202 of the National 
     Fallen Firefighters Foundation Act (36 U.S.C. 5201) is 
     amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) primarily--
       ``(A) to encourage, accept, and administer private gifts of 
     property for the benefit of the National Fallen Firefighters' 
     Memorial and the annual memorial service associated with the 
     memorial; and
       ``(B) to, in coordination with the Federal Government and 
     fire services (as that term is defined in section 4 of the 
     Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
     2203)), plan, direct, and manage the memorial service 
     referred to in subparagraph (A) and related activities;'';
       (2) in paragraph (2), by inserting ``and Federal'' after 
     ``non-Federal'';
       (3) in paragraph (3)--
       (A) by striking ``State and local'' and inserting 
     ``Federal, State, and local''; and
       (B) by striking ``and'' at the end;
       (4) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (5) by adding at the end the following:
       ``(5) to provide for a national program to assist families 
     of fallen firefighters and fire departments in dealing with 
     line-of-duty deaths of those firefighters; and
       ``(6) to promote national, State, and local initiatives to 
     increase public awareness of fire and life safety.''.
       (b) Board of Directors of Foundation.--Section 203(g)(1) of 
     the National Fallen Firefighters Foundation Act (36 U.S.C. 
     5202(g)(1)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) appointing officers or employees;''.
       (c) Administrative Services and Support.--Section 205 of 
     the National Fallen Firefighters

[[Page H9373]]

     Foundation Act (36 U.S.C. 5204) is amended to read as 
     follows:

     ``SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.

       ``(a) In General.--During the 10-year period beginning on 
     the date of enactment of the Departments of Veterans Affairs 
     and Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1999, the Administrator may--
       ``(1) provide personnel, facilities, and other required 
     services for the operation of the Foundation; and
       ``(2) accept reimbursement for the assistance provided 
     under paragraph (1).
       ``(b) Reimbursement.--Any amounts received under subsection 
     (a)(2) as reimbursement for assistance shall be deposited in 
     the Treasury to the credit of the appropriations then current 
     and chargeable for the cost of providing that assistance.
       ``(c) Prohibition.--Notwithstanding any other provision of 
     law, no Federal personnel or stationery may be used to 
     solicit funding for the Foundation.''.
       Sec. 428. Ineligibility of Individuals Convicted of 
     Manufacturing or Producing Methamphetamine for Certain 
     Housing Assistance. Section 16 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437n) is amended by adding at the end 
     the following:
       ``(f) Ineligibility of Individuals Convicted of 
     Manufacturing or Producing Methamphetamine On the Premises.--
     Notwithstanding any other provision of law, a public housing 
     agency shall establish standards for occupancy in public 
     housing dwelling units and assistance under section 8 that--
       ``(1) permanently prohibit occupancy in any public housing 
     dwelling unit by, and assistance under section 8 for, any 
     person who has been convicted of manufacturing or otherwise 
     producing methamphetamine on the premises in violation of any 
     Federal or State law; and
       ``(2) immediately and permanently terminate the tenancy in 
     any public housing unit of, and the assistance under section 
     8 for, any person who is convicted of manufacturing or 
     otherwise producing methamphetamine on the premises in 
     violation of any Federal or State law.''.
       Sec. 429. (a) Not later than 90 days after the date of 
     enactment of this Act, the Consumer Product Safety Commission 
     shall propose for comment a revocation of the amendments to 
     the standards for the flammability of children's sleepwear 
     sizes 0 through 6X (contained in regulations published at 16 
     CFR part 1615) and 7 through 14 (contained in regulations 
     published at 16 CFR part 1616) issued by the Commission on 
     September 9, 1996 (61 FR 47634), and any subsequent 
     amendments thereto.
       (b) The General Accounting Office shall undertake a review 
     of children's burn incident data relating to burns from the 
     ignition of children's sleepwear from small open flame 
     sources for the period July 1, 1997 through January 1, 1999. 
     Such review shall be completed by April 1, 1999 and shall be 
     submitted to the Congress and to the Consumer Product Safety 
     Commission.
       (c) Not later than July 1, 1999, the Consumer Product 
     Safety Commission shall promulgate a final rule revoking, 
     maintaining or modifying the amendments issued by the 
     Commission on September 9, 1996 (61 FR 47634) and any 
     subsequent amendments thereto amending the Flammable Fabrics 
     Act standards for the flammability of children's sleepwear, 
     considering and substantively addressing the findings of the 
     General Accounting Office and other information available to 
     the Commission.
       (d) None of the following shall apply with respect to the 
     promulgation of the amendment prescribed by subsection (a):
       (1) The Consumer Product Safety Act (15 U.S.C. 2051 et 
     seq.).
       (2) The Flammable Fabrics Act (15 U.S.C. 1191 et seq.).
       (3) Chapter 6 of title 5, United States Code.
       (4) The National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (5) The Small Business Regulatory Enforcement Fairness Act 
     of 1996 (Public Law 104-121).
       (6) Any other statute or Executive Order.
       Sec. 430. Comprehensive Accountability Study for Federally-
     Funded Research. (a) Study.--The Director of the Office of 
     Science and Technology Policy, in consultation with the 
     Director of the Office of Management and Budget, may enter 
     into an agreement with the National Academy of Sciences for 
     the Academy to conduct a comprehensive study to develop 
     methods for evaluating federally-funded research and 
     development programs. This study shall--
       (1) recommend processes to determine an acceptable level of 
     success for federally-funded research and development 
     programs by--
       (A) describing the research process in the various 
     scientific and engineering disciplines;
       (B) describing in the different sciences what measures and 
     what criteria each community uses to evaluate the success or 
     failure of a program, and on what time scales these measures 
     are considered reliable--both for exploratory long-range work 
     and for short-range goals; and
       (C) recommending how these measures may be adapted for use 
     by the Federal Government to evaluate federally-funded 
     research and development programs;
       (2) assess the extent to which agencies incorporate 
     independent merit-based evaluation into the formulation of 
     the strategic plans of funding agencies and if the quantity 
     or quality of this type of input is unsatisfactory;
       (3) recommend mechanisms for identifying federally-funded 
     research and development programs which are unsuccessful or 
     unproductive;
       (4) evaluate the extent to which independent, merit-based 
     evaluation of federally-funded research and development 
     programs and projects achieves the goal of eliminating 
     unsuccessful or unproductive programs and projects; and
       (5) investigate and report on the validity of using 
     quantitative performance goals for aspects of programs which 
     relate to administrative management of the program and for 
     which such goals would be appropriate, including aspects 
     related to--
       (A) administrative burden on contractors and recipients of 
     financial assistance awards;
       (B) administrative burdens on external participants in 
     independent, merit-based evaluations;
       (C) cost and schedule control for construction projects 
     funded by the program;
       (D) the ratio of overhead costs of the program relative to 
     the amounts expended through the program for equipment and 
     direct funding of research; and
       (E) the timeliness of program responses to requests for 
     funding, participation, or equipment use.
       (b) Independent Merit-Based Evaluation Defined.--The term 
     ``independent merit-based evaluation'' means review of the 
     scientific or technical quality of research or development, 
     conducted by experts who are chosen for their knowledge of 
     scientific and technical fields relevant to the evaluation 
     and who--
       (1) in the case of the review of a program activity, do not 
     derive long-term support from the program activity; or
       (2) in the case of the review of a project proposal, are 
     not seeking funds in competition with the proposal.
       Sec. 431. Insurance; Indemnification; Liability. (a) In 
     General.--The Administrator may provide liability insurance 
     for, or indemnification to, the developer of an experimental 
     aerospace vehicle developed or used in execution of an 
     agreement between the Administration and the developer.
       (b) Terms and Conditions.--
       (1) In general.--Except as otherwise provided in this 
     section, the insurance and indemnification provided by the 
     Administration under subsection (a) to a developer shall be 
     provided on the same terms and conditions as insurance and 
     indemnification is provided by the Administration under 
     section 308 of the National Aeronautics and Space Act of 1958 
     (42 U.S.C. 2458b) to the user of a space vehicle.
       (2) Insurance.--
       (A) In general.--A developer shall obtain liability 
     insurance or demonstrate financial responsibility in amounts 
     to compensate for the maximum probable loss from claims by--
       (i) a third party for death, bodily injury, or property 
     damage, or loss resulting from an activity carried out in 
     connection with the development or use of an experimental 
     aerospace vehicle; and
       (ii) the United States Government for damage or loss to 
     Government property resulting from such an activity.
       (B) Maximum required.--The Administrator shall determine 
     the amount of insurance required, but, except as provided in 
     subparagraph (C), that amount shall not be greater than the 
     amount required under section 70112(a)(3) of title 49, United 
     States Code, for a launch. The Administrator shall publish 
     notice of the Administrator's determination and the 
     applicable amount or amounts in the Federal Register within 
     10 days after making the determination.
       (C) Increase in dollar amounts.--The Administrator may 
     increase the dollar amounts set forth in section 
     70112(a)(3)(A) of title 49, United States Code, for the 
     purpose of applying that section under this section to a 
     developer after consultation with the Comptroller General and 
     such experts and consultants as may be appropriate, and after 
     publishing notice of the increase in the Federal Register not 
     less than 180 days before the increase goes into effect. The 
     Administrator shall make available for public inspection, not 
     later than the date of publication of such notice, a complete 
     record of any correspondence received by the Administration, 
     and a transcript of any meetings in which the Administration 
     participated, regarding the proposed increase.
       (D) Safety review required before administrator provides 
     insurance.--The Administrator may not provide liability 
     insurance or indemnification under subsection (a) unless the 
     developer establishes to the satisfaction of the 
     Administrator that appropriate safety procedures and 
     practices are being followed in the development of the 
     experimental aerospace vehicle.
       (3) No indemnification without cross-waiver.--
     Notwithstanding subsection (a), the Administrator may not 
     indemnify a developer of an experimental aerospace vehicle 
     under this section unless there is an agreement between the 
     Administration and the developer described in subsection (c).
       (4) Application of certain procedures.--If the 
     Administrator requests additional appropriations to make 
     payments under this section, like the payments that may be 
     made under section 308(b) of the National Aeronautics and 
     Space Act of 1958 (42 U.S.C. 2458b(b)), then the request for 
     those appropriations shall be made in accordance with the 
     procedures established by subsections (d) and (e) of section 
     70113 of title 49, United States Code.
       (c) Cross-Waivers.--
       (1) Administrator authorized to waive.--The Administrator, 
     on behalf of the United States, and its departments, 
     agencies, and related entities, may reciprocally waive claims 
     with a developer and with the related entities of that 
     developer under which each party to the waiver agrees to be 
     responsible, and agrees to ensure that its own related 
     entities are responsible, for damage or loss to its property 
     for which it is responsible, or for losses resulting from any 
     injury or death sustained by its own employees or agents, as 
     a result of activities connected to the agreement or use of 
     the experimental aerospace vehicle.
       (2) Limitations.--

[[Page H9374]]

       (A) Claims.--A reciprocal waiver under paragraph (1) may 
     not preclude a claim by any natural person (including, but 
     not limited to, a natural person who is an employee of the 
     United States, the developer, or the developer's 
     subcontractors) or that natural person's estate, survivors, 
     or subrogees for injury or death, except with respect to a 
     subrogee that is a party to the waiver or has otherwise 
     agreed to be bound by the terms of the waiver.
       (B) Liability for negligence.--A reciprocal waiver under 
     paragraph (1) may not absolve any party of liability to any 
     natural person (including, but not limited to, a natural 
     person who is an employee of the United States, the 
     developer, or the developer's subcontractors) or such a 
     natural person's estate, survivors, or subrogees for 
     negligence, except with respect to a subrogee that is a party 
     to the waiver or has otherwise agreed to be bound by the 
     terms of the waiver.
       (C) Indemnification for damages.--A reciprocal waiver under 
     paragraph (1) may not be used as the basis of a claim by the 
     Administration or the developer for indemnification against 
     the other for damages paid to a natural person, or that 
     natural person's estate, survivors, or subrogees, for injury 
     or death sustained by that natural person as a result of 
     activities connected to the agreement or use of the 
     experimental aerospace vehicle.
       (3) Effect on previous waivers.--Subsection (c) applies to 
     any waiver of claims entered into by the Administration 
     without regard to whether it was entered into before, on, or 
     after the date of enactment of this Act.
       (d) Definitions.--In this section:
       (1) Administration.--The term ``Administration'' means the 
     National Aeronautics and Space Administration.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the National Aeronautics and Space 
     Administration.
       (3) Common terms.--Any term used in this section that is 
     defined in the National Aeronautics and Space Act of 1958 (42 
     U.S.C. 2451 et seq.) has the same meaning in this section as 
     when it is used in that Act.
       (4) Developer.--The term ``developer'' means a United 
     States person (other than a natural person) who--
       (A) is a party to an agreement that was in effect before 
     the date of enactment of this Act with the Administration for 
     the purpose of developing new technology for an experimental 
     aerospace vehicle;
       (B) owns or provides property to be flown or situated on 
     that vehicle; or
       (C) employs a natural person to be flown on that vehicle.
       (5) Experimental aerospace vehicle.--The term 
     ``experimental aerospace vehicle'' means an object intended 
     to be flown in, or launched into, suborbital flight for the 
     purpose of demonstrating technologies necessary for a 
     reusable launch vehicle, developed under an agreement between 
     the Administration and a developer that was in effect before 
     the date of enactment of this Act.
       (6) Related entity.--The term ``related entity'' includes a 
     contractor or subcontractor at any tier, a supplier, a 
     grantee, and an investigator or detailee.
       (e) Relationship to Other Laws.--
       (1) Section 308 of national aeronautics and space act of 
     1958.--This section does not apply to any object, 
     transaction, or operation to which section 308 of the 
     National Aeronautics and Space Act of 1958 (42 U.S.C. 2458b) 
     applies.
       (2) Chapter 701 of title 49, united states code.--The 
     Administrator may not provide indemnification to a developer 
     under this section for launches subject to license under 
     section 70117(g)(1) of title 49, United States Code.
       (f) Termination.--
       (1) In general.--The provisions of this section shall 
     terminate on December 31, 2002, except that the Administrator 
     may extend the termination date to a date not later than 
     September 30, 2005, if the Administrator determines that such 
     an extension is necessary to cover the operation of an 
     experimental aerospace vehicle.
       (2) Effect of termination on agreements.--The termination 
     of this section does not terminate or otherwise affect a 
     cross-waiver agreement, insurance agreement, indemnification 
     agreement, or any other agreement entered into under this 
     section except as may be provided in that agreement.
       Sec. 432. Vietnam Veterans Allotment. The Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.) is amended by 
     adding at the end:


    ``OPEN SEASON FOR CERTAIN ALASKA NATIVE VETERANS FOR ALLOTMENTS

       ``Sec. 41. (a) In General.--(1) During the eighteen month 
     period following promulgation of implementing rules pursuant 
     to subsection (e), a person described in subsection (b) shall 
     be eligible for an allotment of not more than two parcels of 
     federal land totaling 160 acres or less under the Act of May 
     17, 1906 (chapter 2469; 34 Stat. 197), as such Act was in 
     effect before December 18, 1971.
       ``(2) Allotments may be selected only from lands that were 
     vacant, unappropriated, and unreserved on the date when the 
     person eligible for the allotment first used and occupied 
     those lands.
       ``(3) The Secretary may not convey allotments containing 
     any of the following--
       ``(A) lands upon which a native or non-native campsite is 
     located, except for a campsite used primarily by the person 
     selecting the allotment;
       ``(B) lands selected by, but not conveyed to, the State of 
     Alaska pursuant to the Alaska Statehood Act or any other 
     provision of law;
       ``(C) lands selected by, but not conveyed to, a Village or 
     Regional Corporation;
       ``(D) lands designated as wilderness by statute;
       ``(E) acquired lands;
       ``(F) lands containing a building, permanent structure, or 
     other development owned or controlled by the United States, 
     another unit of government, or a person other than the person 
     selecting the allotment;
       ``(G) lands withdrawn or reserved for national defense 
     purposes other than National Petroleum Reserve-Alaska;
       ``(H) National Forest Lands; and
       ``(I) lands selected or claimed, but not conveyed, under a 
     public land law, including but not limited to the following:
       ``(1) Lands within a recorded mining claim.
       ``(2) Home sites.
       ``(3) Trade and Manufacturing sites.
       ``(4) Reindeer sites and Reindeer headquarters sites.
       ``(5) Cemetery sites.
       ``(4) A person who qualifies for an allotment on lands 
     prohibited from conveyance by a provision of subsection 
     (a)(3) may select an alternative allotment from the following 
     lands located within the geographic boundaries of the same 
     Regional Corporation as the excluded allotment--
       ``(A) lands withdrawn pursuant to section 11(a)(1) of this 
     Act which were not selected, or were relinquished after 
     selection;
       ``(B) lands contiguous to the outer boundary of lands 
     withdrawn pursuant to section 11(a)(1)(C) of this Act, except 
     lands excluded from selection by a provision of subsection 
     (a)(3) and lands within a National Park; and
       ``(C) vacant, unappropriated and unreserved lands.
       ``(5) After consultation with a person entitled to an 
     allotment within a Conservation System Unit, the Secretary 
     may convey alternative lands of equal acreage, including 
     lands within a Conservation System Unit, to that person if 
     the Secretary determines that the allotment would be 
     incompatible with a purpose for which the Conservation System 
     Unit was established.
       ``(6) All conveyances under this section shall--
       ``(A) be subject to valid existing rights, including any 
     right of the United States to income derived, directly or 
     indirectly, from a lease, license, permit, right-of-way or 
     easement; and
       ``(B) reserve to the United States deposits of oil, gas and 
     coal, together with the right to explore, mine, and remove 
     these minerals, on lands which the Secretary determines to be 
     prospectively valuable for development.
       ``(b) Eligible Person.--(1) A person is eligible to select 
     an allotment under this section if that person--
       ``(A) would have been eligible for an allotment under the 
     Act of May 17, 1906 (chapter 2469; 34 Stat. 197), as that Act 
     was in effect before December 18, 1971; and
       ``(B) is a veteran who served during the period between 
     January 1, 1969 and December 31, 1971 and--
       ``(i) served at least 6 months between January 1, 1969 and 
     June 2, 1971; or
       ``(ii) enlisted or was drafted into military service after 
     June 2, 1971 but before December 3, 1971.
       ``(2) The personal representative of the estate of a 
     decedent who was eligible under subsection (b)(1) may, for 
     the benefit of the heirs, select an allotment if, during the 
     period specified in subsection (b)(1)(B), the decedent--
       ``(A) was killed in action;
       ``(B) was wounded in action and subsequently died as a 
     direct consequence of that wound, as determined by the 
     Department of Veterans Affairs; or
       ``(C) died while a prisoner of war.
       ``(3) No person who received an allotment or has a pending 
     allotment under the Act of May 17, 1906 may receive an 
     allotment under this section.
       ``(c) Study and Report.--(1) The Secretary of the Interior 
     shall conduct a study to identify and assess the 
     circumstances of veterans of the Vietnam era who--
       ``(A) served during a period other than that specified in 
     subsection (b)(1)(B);
       ``(B) were eligible for an allotment under the Act of May 
     17, 1906; and
       ``(C) did not apply for an allotment under that Act.
       ``(2) The Secretary shall, within one year of enactment of 
     this section, issue a written report on the study, including 
     findings and recommendations, to the Committee on 
     Appropriations and the Committee on Energy and Natural 
     Resources in the Senate and the Committee on Appropriations 
     and the Committee on Resources in the House of 
     Representatives.
       ``(d) Definitions.--For the purposes of this section, the 
     terms `veteran' and `Vietnam era' have the meanings given 
     those terms by paragraphs (2) and (29), respectively, of 
     section 101 of title 38, United States Code.
       ``(e) Regulations.--No later than 18 months after enactment 
     of this section, the Secretary of the Interior shall 
     promulgate, after consultation with Alaska Natives groups, 
     rules to carry out this section.''.
       Sec. 433. The Administrator of the National Aeronautics and 
     Space Administration shall develop and deliver to the House 
     and Senate Committees on Appropriations, no later than 60 
     days after the date of enactment of this Act, a study of 
     alternative approaches whereby NASA could contract with a 
     Russian entity or entities for goods and services related to 
     the International Space Station. The study shall evaluate, at 
     a minimum, government-to-government, government-to-industry, 
     and industry-to-industry arrangements. The study shall 
     evaluate the pros and cons of each possible approach, 
     addressing the following requirements: (1) ensure that NASA 
     receives value for each dollar spent; (2) ensure that the 
     funds provided can be audited; (3) define appropriate 
     milestones; and, (4) adhere to all relevant technology 
     transfer and export control laws.

[[Page H9375]]

         Sec. 434. The National Aeronautics and Space 
     Administration Lewis Research Center in Cleveland, Ohio, 
     shall be redesignated as the ``National Aeronautics and Space 
     Administration John H. Glenn Research Center at Lewis 
     Field''. Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the National 
     Aeronautics and Space Administration Lewis Research Center in 
     Ohio shall be deemed to be a reference to the ``National 
     Aeronautics and Space Administration John H. Glenn Research 
     Center at Lewis Field''.
       Sec. 435. The proposed Amendments to Accounting for 
     Property, Plant, and Equipment (February 1998) (Amending 
     Statements of Federal Financial Accounting Standards Nos. 6 
     and 8, ``Accounting for Property, Plant, and Equipment'' and 
     ``Supplementary Stewardship Reporting'') may be adopted 
     without the prior notification and waiting period required by 
     section 307 of the Chief Financial Officers Act of 1990 
     (Public Law 101-576).

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

     SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the ``Quality 
     Housing and Work Responsibility Act of 1998''.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

Sec. 501. Short title and table of contents.
Sec. 502. Findings and purposes.
Sec. 503. Effective date and regulations.

                     Subtitle A--General Provisions

Sec. 505. Declaration of policy and public housing agency organization.
Sec. 506. Definitions.
Sec. 507. Minimum rent.
Sec. 508. Determination of adjusted income and median income.
Sec. 509. Family self-sufficiency program.
Sec. 510. Prohibition on use of funds.
Sec. 511. Public housing agency plan.
Sec. 512. Community service and family self-sufficiency requirements.
Sec. 513. Income targeting.
Sec. 514. Repeal of Federal preferences.
Sec. 515. Joint ventures and consortia of public housing agencies; 
              repeal of energy conservation provisions.
Sec. 516. Public housing agency mortgages and security interests.
Sec. 517. Mental health action plan.

                       Subtitle B--Public Housing

                Part 1--Capital and Operating Assistance

Sec. 518. Contributions for lower income housing projects.
Sec. 519. Public housing capital and operating funds.
Sec. 520. Total development costs.
Sec. 521. Sanctions for improper use of amounts.
Sec. 522. Repeal of modernization fund.

             Part 2--Admissions and Occupancy Requirements

Sec. 523. Family choice of rental payment.
Sec. 524. Occupancy by police officers and over-income families.
Sec. 525. Site-based waiting lists.
Sec. 526. Pet ownership.

   Part 3--Management, Homeownership, and Demolition and Disposition

Sec. 529. Contract provisions.
Sec. 530. Housing quality requirements.
Sec. 531. Demolition and disposition of public housing.
Sec. 532. Resident councils and resident management corporations.
Sec. 533. Conversion of public housing to vouchers; repeal of family 
              investment centers.
Sec. 534. Transfer of management of certain housing to independent 
              manager at request of residents.
Sec. 535. Demolition, site revitalization, replacement housing, and 
              tenant-based assistance grants for projects.
Sec. 536. Homeownership.
Sec. 537. Required conversion of distressed public housing to tenant-
              based assistance.
Sec. 538. Linking services to public housing residents.
Sec. 539. Mixed-finance public housing.

       Subtitle C--Section 8 Rental and Homeownership Assistance

Sec. 545. Merger of certificate and voucher programs.
Sec. 546. Public housing agencies.
Sec. 547. Administrative fees.
Sec. 548. Law enforcement and security personnel in assisted housing.
Sec. 549. Advance notice to tenants of expiration, termination, or 
              owner nonrenewal of assistance contract.
Sec. 550. Technical and conforming amendments.
Sec. 551. Funding and allocation.
Sec. 552. Treatment of common areas.
Sec. 553. Portability.
Sec. 554. Leasing to voucher holders.
Sec. 555. Homeownership option.
Sec. 556. Renewals.
Sec. 557. Manufactured housing demonstration program.
Sec. 558. Authorizations of appropriations.
Sec. 559. Rulemaking and implementation.

           Subtitle D--Home Rule Flexible Grant Demonstration

Sec. 561. Home rule flexible grant demonstration program.

  Subtitle E--Accountability and Oversight of Public Housing Agencies

Sec. 563. Study of alternative methods for evaluating public housing 
              agencies.
Sec. 564. Public housing management assessment program.
Sec. 565. Expansion of powers for dealing with public housing agencies 
              in substantial default.
Sec. 566. Audits.
Sec. 567. Advisory council for housing authority of New Orleans.
Sec. 568. Treatment of troubled PHA's.

     Subtitle F--Safety and Security in Public and Assisted Housing

Sec. 575. Provisions applicable only to public housing and section 8 
              assistance.
Sec. 576. Screening of applicants for federally assisted housing.
Sec. 577. Termination of tenancy and assistance for illegal drug users 
              and alcohol abusers in federally assisted housing.
Sec. 578. Ineligibility of dangerous sex offenders for admission to 
              public housing.
Sec. 579. Definitions.

               Subtitle G--Repeals and Related Provisions

Sec. 581. Annual report.
Sec. 582. Repeals relating to public housing and section 8 programs.
Sec. 583. Public housing flexibility in CHAS.
Sec. 584. Use of American products.
Sec. 585. GAO study on housing assistance program costs.
Sec. 586. Amendments to Public and Assisted Housing Drug Elimination 
              Act of 1990.
Sec. 587. Review of drug elimination program contracts.
Sec. 588. Prohibition on use of assistance for employment relocation 
              activities.
Sec. 589. Treatment of occupancy standards.
Sec. 590. Income eligibility for HOME and CDBG programs.
Sec. 591. Report on single family and multifamily homes.
Sec. 592. Use of assisted housing by aliens.
Sec. 593. Protection of senior homeowners under reverse mortgage 
              program.
Sec. 594. Housing counseling.
Sec. 595. Native American housing assistance.
Sec. 596. CDBG public services cap.
Sec. 597. Moderate rehabilitation program.
Sec. 598. National cities in schools program.
Sec. 599. Tenant participation in multifamily housing projects.
Sec. 599A. Clarification regarding recreational vehicles.
Sec. 599B. Determination of low-income eligibility for homeownership 
              assistance.
Sec. 599C. Amendments to rural housing programs.
Sec. 599D. Reauthorization of national flood insurance program.
Sec. 599E. Assistance for self-help housing providers
Sec. 599F. Special mortgage insurance assistance.
Sec. 599G. Rehabilitation demonstration grant program.
Sec. 599H. Assistance for certain localities.

     SEC. 502. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) there exists throughout the Nation a need for decent, 
     safe, and affordable housing;
       (2) the inventory of public housing units owned, assisted, 
     or operated by public housing agencies, an asset in which the 
     Federal Government has invested over $90,000,000,000, has 
     traditionally provided rental housing that is affordable to 
     low-income persons;
       (3) despite serving this critical function, the public 
     housing system is plagued by a series of problems, including 
     the concentration of very poor people in very poor 
     neighborhoods and disincentives for economic self-
     sufficiency;
       (4) the Federal method of overseeing every aspect of public 
     housing by detailed and complex statutes and regulations has 
     aggravated the problem and has placed excessive 
     administrative burdens on public housing agencies; and
       (5) the interests of low-income persons, and the public 
     interest, will best be served by a reformed public housing 
     program that--
       (A) consolidates many public housing programs into programs 
     for the operation and capital needs of public housing;
       (B) streamlines program requirements;
       (C) vests in public housing agencies that perform well the 
     maximum feasible authority, discretion, and control with 
     appropriate accountability to public housing residents, 
     localities, and the general public; and
       (D) rewards employment and economic self-sufficiency of 
     public housing residents.
       (b) Purposes.--The purpose of this title is to promote 
     homes that are affordable to low-income families in safe and 
     healthy environments, 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 and decreasing 
     concentrations of poverty in public housing;
       (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) consolidating the voucher and certificate programs for 
     rental assistance under section 8 of the United States 
     Housing Act of 1937 into a single market-driven program that 
     will assist in

[[Page H9376]]

     making tenant-based rental assistance under such section more 
     successful at helping low-income families obtain affordable 
     housing and will increase housing choice for low-income 
     families; and
       (7) remedying the problems of troubled public housing 
     agencies and replacing or revitalizing severely distressed 
     public housing projects.

     SEC. 503. EFFECTIVE DATE AND REGULATIONS.

       (a) In General.--The amendments under this title are made 
     on the date of the enactment of this Act, but this title 
     shall take effect, and the amendments made by this title 
     shall apply beginning upon, October 1, 1999, except--
       (1) as otherwise specifically provided in this title; or
       (2) as otherwise specifically provided in any amendment 
     made by this title.
     The Secretary may, by notice, implement any provision of this 
     title or any amendment made by this title before such date, 
     except to the extent that such provision or amendment 
     specifically provides otherwise.
       (b) Savings Provision.--Notwithstanding any amendment under 
     this title that is made (in accordance with subsection (a)) 
     on the date of the enactment of this Act but applies 
     beginning on October 1, 1999, the provisions of law amended 
     by such amendment, as such provisions were in effect 
     immediately before the making of such amendment, shall 
     continue to apply during the period beginning on the date of 
     the enactment of this Act and ending upon October 1, 1999, 
     unless otherwise specifically provided by this title.
       (c) Technical Recommendations.--Not later than 9 months 
     after the date of the enactment of this Act, the Secretary 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Banking and 
     Financial Services of the House of Representatives, 
     recommended technical and conforming legislative changes 
     necessary to carry out this title and the amendments made by 
     this title.
       (d) List of Obsolete Documents.--Not later than October 1, 
     1999, the Secretary of Housing and Urban Development shall 
     cause to be published in the Federal Register a list of all 
     rules, regulations, and orders (including all handbooks, 
     notices, and related requirements) pertaining to public 
     housing or section 8 tenant-based programs issued or 
     promulgated under the United States Housing Act of 1937 
     before the date of the enactment of this Act that are or will 
     be obsolete because of the enactment of this Act or are 
     otherwise obsolete.
       (e) Protection of Certain Regulations.--No provision of 
     this title may be construed to repeal the regulations of the 
     Secretary regarding tenant participation and tenant 
     opportunities in public housing (24 C.F.R. 964).
       (g) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.
                     Subtitle A--General Provisions

     SEC. 505. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY 
                   ORGANIZATION.

       Section 2 of the United States Housing Act of 1937 (42 
     U.S.C. 1437) is amended to read as follows:

     ``SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY 
                   ORGANIZATION.

       ``(a) Declaration of Policy.--It is the policy of the 
     United States--
       ``(1) to promote the general welfare of the Nation by 
     employing the funds and credit of the Nation, as provided in 
     this Act--
       ``(A) to assist States and political subdivisions of States 
     to remedy the unsafe housing conditions and the acute 
     shortage of decent and safe dwellings for low-income 
     families;
       ``(B) to assist States and political subdivisions of States 
     to address the shortage of housing affordable to low-income 
     families; and
       ``(C) consistent with the objectives of this title, to vest 
     in public housing agencies that perform well, the maximum 
     amount of responsibility and flexibility in program 
     administration, with appropriate accountability to public 
     housing residents, localities, and the general public;
       ``(2) that 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) that the Federal Government should act where there is 
     a serious need that private citizens or groups cannot or are 
     not addressing responsibly; and
       ``(4) that 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.
       ``(b) Public Housing Agency Organization.--
       ``(1) Required membership.--Except as provided in paragraph 
     (2), the membership of the board of directors or similar 
     governing body of each public housing agency shall contain 
     not less than 1 member--
       ``(A) who is directly assisted by the public housing 
     agency; and
       ``(B) who may, if provided for in the public housing agency 
     plan, be elected by the residents directly assisted by the 
     public housing agency.
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     public housing agency--
       ``(A) that is located in a State that requires the members 
     of the board of directors or similar governing body of a 
     public housing agency to be salaried and to serve on a full-
     time basis; or
       ``(B) with less than 300 public housing units, if--
       ``(i) the agency has provided reasonable notice to the 
     resident advisory board of the opportunity of not less than 1 
     resident described in paragraph (1) to serve on the board of 
     directors or similar governing body of the public housing 
     agency pursuant to such paragraph; and
       ``(ii) within a reasonable time after receipt by the 
     resident advisory board established by the agency pursuant to 
     section 5A(e) of notice under clause (i), the public housing 
     agency has not been notified of the intention of any resident 
     to participate on the board of directors.
       ``(3) Nondiscrimination.--No person shall be prohibited 
     from serving on the board of directors or similar governing 
     body of a public housing agency because of the residence of 
     that person in a public housing project or status as assisted 
     under section 8.''.

     SEC. 506. DEFINITIONS.

       Section 3(b) of the United States Housing Act of 1937 (42 
     U.S.C. 1437a(b)) is amended as follows:
       (1) Public housing.--In paragraph (1), by inserting after 
     the second sentence the following new sentence: ``The term 
     `public housing' includes dwelling units in a mixed finance 
     project that are assisted by a public housing agency with 
     capital or operating assistance.''.
       (2) Single persons.--In paragraph (3)--
       (A) in subparagraph (A), by striking the third sentence; 
     and
       (B) in subparagraph (B), in the second sentence, by 
     striking ``regulations of the Secretary'' and inserting 
     ``public housing agency plan''.
       (3) Person with disabilities.--In paragraph (3)(E), by 
     adding after the period at the end the following new 
     sentences: ``Notwithstanding any other provision of law, no 
     individual shall be considered a person with disabilities, 
     for purposes of eligibility for low-income housing under this 
     title, solely on the basis of any drug or alcohol dependence. 
     The Secretary shall consult with other appropriate Federal 
     agencies to implement the preceding sentence.''.
       (4) New terms.--Section 3(b) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(b)) is amended by adding at the 
     end the following new paragraphs:
       ``(9) 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).
       ``(10) Mixed-finance project.--The term `mixed-finance 
     project' means a public housing project that meets the 
     requirements of section 35.
       ``(11) Public housing agency plan.--The term `public 
     housing agency plan' means the plan of a public housing 
     agency prepared in accordance with section 5A.
       ``(12) Capital fund.--The term `Capital Fund' means the 
     fund established under section 9(d).
       ``(13) Operating fund.--The term `Operating Fund' means the 
     fund established under section 9(e).''.

     SEC. 507. MINIMUM RENT.

       (a) In General.--Section 3(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(a)) is amended by adding at the 
     end the following new paragraph:
       ``(3) Minimum rental amount.--
       ``(A) Requirement.--Notwithstanding paragraph (1) of this 
     subsection, the method for rent determination elected 
     pursuant to paragraph (2)(A) of this subsection by a family 
     residing in public housing, section 8(o)(2) of this Act, or 
     section 206(d) of the Housing and Urban-Rural Recovery Act of 
     1983 (including paragraph (5) of such section), the following 
     entities shall require the following families to pay a 
     minimum monthly rental amount (which amount shall include any 
     amount allowed for utilities) of not more than $50 per month, 
     as follows:
       ``(i) Each public housing agency shall require the payment 
     of such minimum monthly rental amount, which amount shall be 
     determined by the agency, by--
       ``(I) each family residing in a dwelling unit in public 
     housing by the agency;
       ``(II) each family who is assisted under the certificate or 
     moderate rehabilitation program under section 8; and
       ``(III) each family who is assisted under the voucher 
     program under section 8, and the agency shall reduce the 
     monthly assistance payment on behalf of such family as may be 
     necessary to ensure payment of such minimum monthly rental 
     amount.
       ``(ii) The Secretary shall require each family who is 
     assisted under any other program for rental assistance under 
     section 8 to pay such minimum monthly rental amount, which 
     amount shall be determined by the Secretary.
       ``(B) Exception for hardship circumstances.--
       ``(i) In general.--Notwithstanding subparagraph (A), a 
     public housing agency (or the Secretary, in the case of a 
     family described in subparagraph (A)(ii)) shall immediately 
     grant an exemption from application of the minimum monthly 
     rental under such subparagraph 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 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 subparagraph (A); (III) the income of the 
     family has decreased because of changed circumstance, 
     including loss of employment; (IV) a death in the family has 
     occurred; and (V) other situations as may be determined by 
     the agency (or the Secretary, in the case of a family 
     described in subparagraph (A)(ii)).

[[Page H9377]]

       ``(ii) Waiting period.--If a resident requests a hardship 
     exemption under this subparagraph and the public housing 
     agency (or the Secretary, in the case of a family described 
     in subparagraph (A)(ii)) 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 (or 
     the Secretary) shall retroactively exempt the resident from 
     the applicability of the minimum rent requirement for such 
     90-day period.''.
       (b) Repeal of Duplicative Provisions.--Section 402 of the 
     Balanced Budget Downpayment Act, I (Public Law 104-99; 110 
     Stat. 40) is amended by striking subsection (a).
       (c) Conforming Amendment.--The third sentence of section 
     3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 
     1437a(a)(1)) is amended by inserting ``and subject to the 
     requirement under paragraph (3)'' before the first comma.
       (d) Effective Date.--The amendments under this section are 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

       (a) Adjusted Income.--Paragraph (5) of section 3(b) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is 
     amended to read as follows:
       ``(5) Adjusted income.--The term `adjusted income' means, 
     with respect to a family, the amount (as determined by the 
     public housing agency) of the income of the members of the 
     family residing in a dwelling unit or the persons on a lease, 
     after any income exclusions as follows:
       ``(A) Mandatory exclusions.--In determining adjusted 
     income, a public housing agency shall exclude from the annual 
     income of a family the following amounts:
       ``(i) Elderly and disabled families.--$400 for any elderly 
     or disabled family.
       ``(ii) Medical expenses.--The amount by which 3 percent of 
     the annual family income is exceeded by the sum of--
       ``(I) unreimbursed medical expenses of any elderly family 
     or disabled family;
       ``(II) unreimbursed medical expenses of any family that is 
     not covered under subclause (I), except that this subclause 
     shall apply only to the extent approved in appropriation 
     Acts; and
       ``(III) 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.
       ``(iii) 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.
       ``(iv) 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.
       ``(v) 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 clause may not exceed $480 for each child 
     for whom such payment is made; except that this clause shall 
     apply only to the extent approved in appropriations Acts.
       ``(vi) Spousal support expenses.--Any payment made by a 
     member of the family for the support and maintenance of any 
     spouse or former spouse who does not reside in the household, 
     except that the amount excluded under this clause shall not 
     exceed the lesser of (I) the amount that such family member 
     has a legal obligation to pay, or (II) $550 for each 
     individual for whom such payment is made; except that this 
     clause shall apply only to the extent approved in 
     appropriations Acts.
       ``(vii) Earned income of minors.--The amount of any earned 
     income of a member of the family who is not--
       ``(I) 18 years of age or older; and
       ``(II) the head of the household (or the spouse of the head 
     of the household).
       ``(B) Permissive exclusions for public housing.--In 
     determining adjusted income, a public housing agency may, in 
     the discretion of the agency, establish exclusions from the 
     annual income of a family residing in a public housing 
     dwelling unit. Such exclusions may include the following 
     amounts:
       ``(i) Excessive travel expenses.--Excessive travel expenses 
     in an amount not to exceed $25 per family per week, for 
     employment- or education-related travel.
       ``(ii) 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--
       ``(I) all earned income of the family,
       ``(II) the amount earned by particular members of the 
     family;
       ``(III) the amount earned by families having certain 
     characteristics; or
       ``(IV) the amount earned by families or members during 
     certain periods or from certain sources.
       ``(iii) Others.--Such other amounts for other purposes, as 
     the public housing agency may establish.''.
       (b) Disallowance of Earned Income From Public Housing Rent 
     Determinations.--
       (1) In general.--Section 3 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a) is amended--
       (A) by striking the undesignated paragraph that follows 
     subsection (c)(3) (as added by section 515(b) of the 
     Cranston-Gonzalez National Affordable Housing Act (Public Law 
     101-625; 104 Stat. 4199)); and
       (B) by adding at the end the following new subsections:
       ``(d) Disallowance of Earned Income From Rent 
     Determinations.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the rent payable under subsection (a) by a family 
     described in paragraph (3) of this subsection may not be 
     increased as a result of the increased income due to such 
     employment during the 12-month period beginning on the date 
     on which the employment is commenced.
       ``(2) Phase-in of rent increases.--Upon the expiration of 
     the 12-month period referred to in paragraph (1), the rent 
     payable by a family described in paragraph (3) may be 
     increased due to the continued employment of the family 
     member described in paragraph (3)(B), except that during the 
     12-month period beginning upon such expiration the amount of 
     the increase may not be greater than 50 percent of the amount 
     of the total rent increase that would be applicable but for 
     this paragraph.
       ``(3) Eligible families.--A family described in this 
     paragraph is a family--
       ``(A) that--
       ``(i) occupies a dwelling unit in a public housing project; 
     or
       ``(ii) receives assistance under section 8; and
       ``(B)(i) whose income increases as a result of employment 
     of a member of the family who was previously unemployed for 1 
     or more years;
       ``(ii) whose earned income increases during the 
     participation of a family member in any family self-
     sufficiency or other job training program; or
       ``(iii) who is or was, within 6 months, assisted under any 
     State program for temporary assistance for needy families 
     funded under part A of title IV of the Social Security Act 
     and whose earned income increases.
       ``(4) Applicability.--This subsection and subsection (e) 
     shall apply beginning upon October 1, 1999, except that this 
     subsection and subsection (e) shall apply with respect to any 
     family described in paragraph 3(A)(ii) only to the extent 
     provided in advance in appropriations Acts.
       ``(e) Individual Savings Accounts.--
       ``(1) In general.--In lieu of a disallowance of earned 
     income under subsection (d), upon the request of a family 
     that qualifies under subsection (d), a public housing agency 
     may establish an individual savings account in accordance 
     with this subsection for that family.
       ``(2) Deposits to account.--The public housing agency shall 
     deposit in any savings account established under this 
     subsection an amount equal to the total amount that otherwise 
     would be applied to the family's rent payment under 
     subsection (a) as a result of employment.
       ``(3) Withdrawal from account.--Amounts deposited in a 
     savings account established under this subsection may only be 
     withdrawn by the family for the purpose of--
       ``(A) purchasing a home;
       ``(B) paying education costs of family members;
       ``(C) moving out of public or assisted housing; or
       ``(D) paying any other expense authorized by the public 
     housing agency for the purpose of promoting the economic 
     self-sufficiency of residents of public and assisted 
     housing.''.
       (2) Savings provision.--Notwithstanding the amendment made 
     by paragraph (1), the provisions of the undesignated 
     paragraph at the end of section 3(c)(3) of the United States 
     Housing Act of 1937, as such section was in effect 
     immediately before the enactment of this Act, shall continue 
     to apply until the effective date under section 503 of this 
     Act. Notwithstanding the amendment made by subsection (a) of 
     this section, nor the applicability under section 402(f) of 
     The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) 
     of the amendments made by such section 402, nor any repeal of 
     such section 402(f), the provisions of section 3(b)(5)(G) of 
     the United States Housing Act of 1937 (42 U.S.C. 
     1437a(b)(5)(G)), as such section was in effect immediately 
     before the date of the enactment of this Act, shall continue 
     to apply until the effective date under section 503 of this 
     Act.
       (c) Median Income.--
       (1) In general.--Section 3(b)(2) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
       (A) in the 4th sentence--
       (i) by striking ``County'' and inserting ``and Rockland 
     Counties''; and
       (ii) by inserting ``each'' before ``such county'';
       (B) in the last sentence--
       (i) by striking ``County'' the 1st place it appears and 
     inserting ``or Rockland Counties''; and
       (ii) by striking ``County'' the 2d place it appears and 
     inserting ``and Rockland Counties''; and
       (C) by adding at the end the following new sentences: ``In 
     determining areas that are designated as difficult 
     development areas for purposes of the low-income housing tax 
     credit, the Secretary shall include Westchester and Rockland 
     Counties, New York, in the New York City metropolitan 
     area.''.
       (2) Applicability.--The amendments made by this paragraph 
     are made on, and shall apply beginning upon, the date of the 
     enactment of this Act.
       (d) Availability of Income Matching Information.--
       (1) Availability.--Section 3 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(f) Availability of Income Matching Information.--

[[Page H9378]]

       ``(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 under 
     this Act on behalf of such family, as applicable.
       ``(2) Families covered.--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 tenant-based assistance is provided under 
     section 8.''.
       (2) 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;
       (ii) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       (iii) 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 3(f)(2) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437a(f)(2)), 
     sign an agreement under which the applicant or participant 
     agrees to provide to the appropriate public housing agency 
     the information required under section 3(f)(1) of such Act 
     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 3(d)(1) of the United 
     States Housing Act of 1937 from the applicant or 
     participant,''; and
       (II) by inserting ``or 3(d)(1)'' after ``such section 
     303(i)''; and

       (ii) in paragraph (3)--

       (I) in subparagraph (A), by inserting ``, section 3(d)(1) 
     of the United States Housing Act of 1937,'' after ``Social 
     Security Act'';
       (II) in subparagraph (A), by inserting ``or agreement, as 
     applicable,'' after ``consent'';
       (III) in subparagraph (B), by inserting ``section 3(d)(1) 
     of the United States Housing Act of 1937,'' after ``Social 
     Security Act,''; and
       (IV) in subparagraph (B), by inserting `` such section 
     3(d)(1),'' after ``such section 303(i),'' each place it 
     appears.

     SEC. 509. FAMILY SELF-SUFFICIENCY PROGRAM.

       (a) In General.--Section 23 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437u(b)) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``, subject to the limitations in paragraph 
     (4); and''; and
       (iii) by adding at the end the following new subparagraph:
       ``(C) effective on the date of the enactment of the Quality 
     Housing and Work Responsibility Act of 1998, to the extent an 
     agency is not required to carry out a program pursuant to 
     subparagraph (B) of this paragraph and paragraph (4), may 
     carry out a local Family Self-Sufficiency program under this 
     section.'';
       (B) in paragraph (3), by striking ``Each'' and inserting 
     ``Subject to paragraph (4), each'';
       (C) by redesignating paragraph (4) as paragraph (5); and
       (D) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Termination of requirement to expand program.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, a public housing agency that receives incremental 
     assistance under subsection (b) or (o) of section 8 or that 
     makes available new public housing dwelling units shall not 
     be required, after the enactment of the Quality Housing and 
     Work Responsibility Act of 1998, to provide assistance under 
     a local Family Self-Sufficiency program under this section to 
     any families not required to be assisted under subparagraph 
     (B) of this paragraph.
       ``(B) Continuation of existing obligations.--
       ``(i) In general.--Each public housing agency that, before 
     the enactment of the Quality Housing and Work Responsibility 
     Act of 1998, was required under this section to carry out a 
     local Family Self-Sufficiency program shall continue to 
     operate such local program for the number of families 
     determined under paragraph (3), subject only to the 
     availability under appropriations Acts of sufficient amounts 
     for housing assistance.
       ``(ii) Reduction.--The number of families for which an 
     agency is required under clause (i) to operate such local 
     program shall be decreased by one for each family that, after 
     enactment of the Quality Housing and Work Responsibility Act 
     of 1998, fulfills its obligations under the contract of 
     participation.'';
       (2) in subsection (d), by striking the second paragraph 
     that is designated as paragraph (3) (relating to use of 
     escrow savings accounts for section 8 homeownership; as added 
     by section 185(b) of the Housing and Community Development 
     Act of 1992 (Public Law 102-550; 106 Stat. 3747)); and
       (3) in subsection (f)(1), by inserting ``carrying out a 
     local program under this section'' after ``Each public 
     housing agency''.
       (b) Applicability.--The amendments made by this subsection 
     are made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 510. PROHIBITION ON USE OF FUNDS.

       Section 5 of the United States Housing Act of 1937 (42 
     U.S.C. 1437c)) is amended by adding at the end the following 
     new subsection:
       ``(l) Prohibition on Use of Funds.--None of the funds made 
     available to the Department of Housing and Urban Development 
     to carry out this Act, which are obligated to State or local 
     governments, 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. 511. PUBLIC HOUSING AGENCY PLAN.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended by inserting 
     after section 5 the following new section:

     ``SEC. 5A. PUBLIC HOUSING AGENCY PLANS.

       ``(a) 5-Year Plan.--
       ``(1) In general.--Subject to paragraph (2), not less than 
     once every 5 fiscal years, each public housing agency shall 
     submit to the Secretary a plan that includes, with respect to 
     the 5 fiscal years immediately following the date on which 
     the plan is submitted--
       ``(A) a statement of the mission of the public housing 
     agency for serving the needs of low-income and very low-
     income families in the jurisdiction of the public housing 
     agency during such fiscal years; and
       ``(B) a statement of the goals and objectives of the public 
     housing agency that will enable the public housing agency to 
     serve the needs identified pursuant to subparagraph (A) 
     during those fiscal years.
       ``(2) Initial plan.--The initial 5-year plan submitted by a 
     public housing agency under this subsection shall be 
     submitted for the 5-year period beginning on October 1, 1999, 
     or the first fiscal year thereafter for which the public 
     housing agency initially receives assistance under this Act.
       ``(b) Annual Plan.--
       ``(1) In general.--Effective beginning upon October 1, 
     1999, each public housing agency shall submit to the 
     Secretary an annual public housing agency plan under this 
     subsection for each fiscal year for which the public housing 
     agency receives assistance under section 8(o) or 9.
       ``(2) Updates.--For each fiscal year after the initial 
     submission of an annual plan under this subsection by a 
     public housing agency, the public housing 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.--
       ``(1) In general.--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.
       ``(2) Contents.--The procedures established under paragraph 
     (1) shall provide that a public housing agency shall--
       ``(A) in developing the plan consult with the resident 
     advisory board established under subsection (e); and
       ``(B) 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 
     contains a certification by the appropriate State or local 
     official that the plan meets the requirements of this 
     paragraph and a description of the manner in which the 
     applicable contents of the public housing agency plan are 
     consistent with the comprehensive housing affordability 
     strategy.
       ``(d) Contents.--An annual public housing agency plan under 
     subsection (b) for a public housing agency shall contain the 
     following information relating to the upcoming fiscal year 
     for which the assistance under this Act is to be made 
     available:
       ``(1) Needs.--A statement of the housing needs of low-
     income and very low-income families residing in the 
     jurisdiction served by the public housing agency, and of 
     other low-income and very low-income families on the waiting 
     list of the agency (including housing needs of elderly 
     families and disabled families), and the means by which the 
     public housing agency intends, to the maximum extent 
     practicable, to address those needs.
       ``(2) Financial resources.--A statement of financial 
     resources available to the agency and the planned uses of 
     those resources.
       ``(3) Eligibility, selection, and admissions policies.--A 
     statement of the policies governing eligibility, selection, 
     admissions (including any preferences), assignment, and 
     occupancy of families with respect to public housing dwelling 
     units and housing assistance under section 8(o), including--
       ``(A) the procedures for maintaining waiting lists for 
     admissions to public housing projects of the agency, which 
     may include a system of site-based waiting lists under 
     section 6(r); and
       ``(B) the admissions policy under section 16(a)(3)(B) for 
     deconcentration of lower-income families.
       ``(4) Rent determination.--A statement of the policies of 
     the public housing agency governing rents charged for public 
     housing dwelling units and rental contributions of families 
     assisted under section 8(o).
       ``(5) Operation and management.--A statement of the rules, 
     standards, and policies of the public housing agency 
     governing maintenance and management of housing owned, 
     assisted, or

[[Page H9379]]

     operated by the public housing agency (which shall include 
     measures necessary for the prevention or eradication of pest 
     infestation, including by cockroaches), and management of the 
     public housing agency and programs of the public housing 
     agency.
       ``(6) Grievance procedure.--A statement of the grievance 
     procedures of the public housing agency.
       ``(7) Capital improvements.--With respect to public housing 
     projects owned, assisted, or operated by the public housing 
     agency, a plan describing the capital improvements necessary 
     to ensure long-term physical and social viability of the 
     projects.
       ``(8) Demolition and disposition.--With respect to public 
     housing projects owned by the public housing agency--
       ``(A) a description of any housing for which the PHA will 
     apply for demolition or disposition under section 18; and
       ``(B) a timetable for the demolition or disposition.
       ``(9) Designation of housing for elderly and disabled 
     families.--With respect to public housing projects owned, 
     assisted, or operated by the public housing agency, a 
     description of any projects (or portions thereof) that the 
     public housing agency has designated or will apply for 
     designation for occupancy by elderly and disabled families in 
     accordance with section 7.
       ``(10) Conversion of public housing.--With respect to 
     public housing owned by a public housing agency--
       ``(A) a description of any building or buildings that the 
     public housing agency is required to convert to tenant-based 
     assistance under section 33 or that the public housing agency 
     plans to voluntarily convert under section 22;
       ``(B) an analysis of the projects or buildings required to 
     be converted under section 33; and
       ``(C) a statement of the amount of assistance received 
     under this Act to be used for rental assistance or other 
     housing assistance in connection with such conversion.
       ``(11) Homeownership.--A description of any homeownership 
     programs of the agency under section 8(y) or for which the 
     public housing agency has applied or will apply for approval 
     under section 32.
       ``(12) Community service and self-sufficiency.--A 
     description of--
       ``(A) any programs relating to services and amenities 
     provided or offered to assisted families;
       ``(B) any policies or programs of the public housing agency 
     for the enhancement of the economic and social self-
     sufficiency of assisted families;
       ``(C) how the public housing agency will comply with the 
     requirements of subsections (c) and (d) of section 12 
     (relating to community service and treatment of income 
     changes resulting from welfare program requirements).
       ``(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 
     project-by-project or jurisdiction-wide basis, for measures 
     to ensure the safety of public housing residents.
       ``(B) Establishment.--The plan shall be established in 
     consultation with the police officer or officers in command 
     for the appropriate precinct or police department.
       ``(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 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 project 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.
       ``(14) Pets.--The requirements of the agency, pursuant to 
     section 31, relating to pet ownership in public housing.
       ``(15) Civil rights certification.--A certification by the 
     public housing agency that the public housing agency will 
     carry out the public housing agency plan in conformity with 
     title VI of the Civil Rights Act of 1964, the Fair Housing 
     Act, section 504 of the Rehabilitation Act of 1973, and title 
     II of the Americans with Disabilities Act of 1990, and will 
     affirmatively further fair housing.
       ``(16) Annual audit.--The results of the most recent fiscal 
     year audit of the public housing agency under section 
     5(h)(2).
       ``(17) 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.
       ``(18) Other.--Any other information required by law to be 
     included in a public housing agency plan.
       ``(e) Resident Advisory Board.--
       ``(1) In general.--Except as provided in paragraph (3), 
     each public housing agency shall establish 1 or more resident 
     advisory boards in accordance with this subsection, the 
     membership of which shall adequately reflect and represent 
     the residents assisted by the public housing agency.
       ``(2) Functions.--Each resident advisory board established 
     under this subsection by a public housing agency shall assist 
     and make recommendations regarding the development of the 
     public housing agency plan for the agency. The agency shall 
     consider the recommendations of the resident advisory boards 
     in preparing the final public housing agency plan, and shall 
     include, in the public housing agency plan submitted to the 
     Secretary under this section, a copy of the recommendations 
     and a description of the manner in which the recommendations 
     were addressed.
       ``(3) Waiver.--The Secretary may waive the requirements of 
     this subsection with respect to the establishment of resident 
     advisory boards for a public housing agency if the agency 
     demonstrates to the satisfaction of the Secretary that there 
     exist resident councils or other resident organizations of 
     the public housing agency that--
       ``(A) adequately represent the interests of the residents 
     of the public housing agency; and
       ``(B) have the ability to perform the functions described 
     in paragraph (2).
       ``(1) In general.--In developing a public housing agency 
     plan under this section, the board of directors or similar 
     governing body of a public housing agency shall conduct a 
     public hearing to discuss the public housing agency plan and 
     to invite public comment regarding that plan. The hearing 
     shall be conducted at a location that is convenient to 
     residents.
       ``(2) Availability of information and notice.--Not later 
     than 45 days before the date of a hearing conducted under 
     paragraph (1), the public housing agency shall--
       ``(A) make the proposed public housing agency plan and all 
     information relevant to the hearing and proposed plan 
     available for inspection by the public at the principal 
     office of the public housing agency during normal business 
     hours; and
       ``(B) publish a notice informing the public that--
       ``(i) that the information is available as required under 
     subparagraph (A); and
       ``(ii) that a public hearing under paragraph (1) will be 
     conducted.
       ``(3) Adoption of plan.--A public housing agency may adopt 
     a public housing agency plan and submit the plan to the 
     Secretary in accordance with this section only after--
       ``(A) conducting a public hearing under paragraph (1);
       ``(B) considering all public comments received; and
       ``(C) making any appropriate changes in the public housing 
     agency plan, in consultation with the resident advisory 
     board.
       ``(4) Advisory board consultation enforcement.--Pursuant to 
     a written request made by the resident advisory board for a 
     public housing agency that documents a failure on the part of 
     the agency to provide adequate notice and opportunity for 
     comment under this subsection and a finding by the Secretary 
     of good cause within the time period provided for in 
     subsection (i)(4), the Secretary may require the public 
     housing agency to adequately remedy such failure before final 
     approval of the public housing agency plan under this 
     section.
       ``(g) Amendments and Modifications to Plans.--
       ``(1) In general.--Except as provided in paragraph (2), 
     nothing in this section shall preclude a public housing 
     agency, after submitting a plan to the Secretary in 
     accordance with this section, from amending or modifying any 
     policy, rule, regulation, or plan of the public housing 
     agency, except that a significant amendment or modification 
     may not--
       ``(A) be adopted, other than at a duly called meeting of 
     board of directors (or similar governing body) of the public 
     housing agency that is open to the public; and
       ``(B) be implemented, until notification of the amendment 
     or modification is provided to the Secretary and approved in 
     accordance with subsection (i).
       ``(2) Consistency and notice.--Each significant amendment 
     or modification to a public housing agency plan submitted to 
     the Secretary under this section shall--
       ``(A) meet the requirements under subsection (c)(2) 
     (relating to consultation with resident advisory board and 
     consistency with comprehensive housing affordability 
     strategies); and
       ``(B) be subject to the notice and public hearing 
     requirements of subsection (f).
       ``(h) Submission of Plans.--
       ``(1) Initial submission.--Each public housing agency shall 
     submit the initial plan required by this section, and any 
     amendment or modification to the initial plan, to the 
     Secretary at such time and in such form as the Secretary 
     shall require.
       ``(2) Annual submission.--Not later than 75 days before the 
     start of the fiscal year of the public housing agency, after 
     submission of the initial plan required by this section in 
     accordance with subparagraph (A), each public housing agency 
     shall annually submit to the Secretary a plan update, 
     including any amendments or modifications to the public 
     housing agency plan.
       ``(i) Review and Determination of Compliance.--
       ``(1) Review.--Subject to paragraph (2), after submission 
     of the public housing agency plan or any amendment or 
     modification to the plan to the Secretary, to the extent that 
     the Secretary considers such action to be necessary to make 
     determinations under this paragraph, the Secretary shall 
     review the public housing agency plan (including any 
     amendments or modifications thereto) and determine whether 
     the contents of the plan--
       ``(A) set forth the information required by this section 
     and this Act to be contained in a public housing agency plan;
       ``(B) are consistent with information and data available to 
     the Secretary, including the approved comprehensive housing 
     affordability strategy under title I of the Cranston-Gonzalez 
     National Affordable Housing Act for the jurisdiction in which 
     the public housing agency is located; and
       ``(C) are not prohibited by or inconsistent with any 
     provision of this title or other applicable law.

[[Page H9380]]

       ``(2) Elements exempted from review.--The Secretary may, by 
     regulation, provide that one or more elements of a public 
     housing agency plan shall be reviewed only if the element is 
     challenged, except that the Secretary shall review the 
     information submitted in each plan pursuant to paragraphs 
     (3)(B), (8), and (15) of subsection (d).
       ``(3) Disapproval.--The Secretary may disapprove a public 
     housing agency plan (or any amendment or modification 
     thereto) only if Secretary determines that the contents of 
     the plan (or amendment or modification) do not comply with 
     the requirements under subparagraph (A) through (C) of 
     paragraph (1).
       ``(4) Determination of compliance.--
       ``(A) In general.--Except as provided in subsection (j)(2), 
     not later than 75 days after the date on which a public 
     housing agency plan is submitted in accordance with this 
     section, the Secretary shall make the determination under 
     paragraph (1) and provide written notice to the public 
     housing agency if the plan has been disapproved. If the 
     Secretary disapproves the plan, the notice shall state with 
     specificity the reasons for the disapproval.
       ``(B) Failure to provide notice of disapproval.--In the 
     case of a plan disapproved, if the Secretary does not provide 
     notice of disapproval under subparagraph (A) before the 
     expiration of the period described in subparagraph (A), the 
     Secretary shall be considered, for purposes of this Act, to 
     have made a determination that the plan complies with the 
     requirements under this section and the agency shall be 
     considered to have been notified of compliance upon the 
     expiration of such 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).
       ``(5) Public availability.--A public housing agency shall 
     make the approved plan of the agency available to the general 
     public.
       ``(j) Troubled and At-Risk PHAs.--
       ``(1) In general.--The Secretary may require, for each 
     public housing agency that is at risk of being designated as 
     troubled under section 6(j)(2) or is designated as troubled 
     under section 6(j)(2), that the public housing agency plan 
     for such agency include such additional information as the 
     Secretary determines to be appropriate, in accordance with 
     such standards as the Secretary may establish or in 
     accordance with such determinations as the Secretary may make 
     on an agency-by-agency basis.
       ``(2) Troubled agencies.--The Secretary shall provide 
     explicit written approval or disapproval, in a timely manner, 
     for a public housing agency plan submitted by any public 
     housing agency designated by the Secretary as a troubled 
     public housing agency under section 6(j)(2).
       ``(k) Streamlined plan.--In carrying out this section, the 
     Secretary may establish a streamlined public housing agency 
     plan for--
       ``(A) public housing agencies that are determined by the 
     Secretary to be high performing public housing agencies;
       ``(B) public housing agencies with less than 250 public 
     housing units that have not been designated as troubled under 
     section 6(j)(2); and
       ``(C) public housing agencies that only administer tenant-
     based assistance and that do not own or operate public 
     housing.
       ``(l) Compliance With Plan.--
       ``(1) In general.--In providing assistance under this 
     title, a public housing agency shall comply with the rules, 
     standards, and policies established in the public housing 
     agency plan of the public housing agency approved under this 
     section.
       ``(2) Investigation and enforcement.--In carrying out this 
     title, the Secretary shall--
       ``(A) provide an appropriate response to any complaint 
     concerning noncompliance by a public housing agency with the 
     applicable public housing agency plan; and
       ``(B) if the Secretary determines, based on a finding of 
     the Secretary or other information available to the 
     Secretary, that a public housing agency is not complying with 
     the applicable public housing agency plan, take such actions 
     as the Secretary determines to be appropriate to ensure such 
     compliance.''.
       (b) Implementation.--
       (1) Interim rule.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary shall issue an 
     interim rule to require the submission of an interim public 
     housing agency plan by each public housing agency, as 
     required by section 5A of the United States Housing Act of 
     1937 (as added by subsection (a) of this section). The 
     interim rule shall provide for a public comment period of not 
     less than 60 days.
       (2) Final regulations.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall issue 
     final regulations implementing section 5A of the United 
     States Housing Act of 1937 (as added by subsection (a) of 
     this section).
       (3) Factors for consideration.--Before the publication of 
     the final regulations under paragraph (2), in addition to 
     public comments invited in connection with the publication of 
     the interim rule, the Secretary shall--
       (A) seek recommendations on the implementation of section 
     5A of the United States Housing Act of 1937 (as added by this 
     subsection (a) of this section) from organizations 
     representing--
       (i) State or local public housing agencies;
       (ii) residents, including resident management corporations; 
     and
       (iii) other appropriate parties; and
       (B) convene not less than 2 public forums at which the 
     persons or organizations making recommendations under 
     subparagraph (A) may express views concerning the proposed 
     disposition of the recommendations.
     The Secretary shall publish in the final rule a summary of 
     the recommendations made and public comments received and the 
     Department of Housing and Urban Development's response to 
     such recommendations and comments.
       (c) Audit and Review; Report.--
       (1) Audit and review.--Not later than 1 year after the 
     effective date of final regulations issued under subsection 
     (b)(2), in order to determine the degree of compliance, by 
     public housing agencies, with public housing agency plans 
     approved under section 5A of the United States Housing Act of 
     1937 (as added by subsection (a) of this section), the 
     Comptroller General of the United States shall conduct--
       (A) a review of a representative sample of the public 
     housing agency plans approved under such section 5A before 
     such date; and
       (B) an audit and review of the public housing agencies 
     submitting such plans.
       (2) Report.--Not later than 2 years after the date on which 
     public housing agency plans are initially required to be 
     submitted under section 5A of the United States Housing Act 
     of 1937 (as added by subsection (a) of this section) the 
     Comptroller General of the United States shall submit to the 
     Congress a report, which shall include--
       (A) a description of the results of each audit and review 
     under paragraph (1); and
       (B) any recommendations for increasing compliance by public 
     housing agencies with their public housing agency plans 
     approved under section 5A of the United States Housing Act of 
     1937 (as added by subsection (a) of this section).
       (d) Contract Provisions.--Section 6(a) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(a)) is amended--
       (1) in the first sentence, by inserting ``, in a manner 
     consistent with the public housing agency plan'' before the 
     period; and
       (2) by striking the second sentence.
       (e) Applicability.--This section shall take effect, and the 
     amendments made by this section are made on, and shall apply 
     beginning upon, the date of the enactment of this Act.

     SEC. 512. COMMUNITY SERVICE AND FAMILY SELF-SUFFICIENCY 
                   REQUIREMENTS.

       (a) In General.--Section 12 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437j) is amended--
       (1) in the section heading, by inserting ``and community 
     service requirement'' after ``labor standards''; and
       (2) by adding at the end the following new subsections:
       ``(c) Community Service Requirement.--
       ``(1) In General.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of law, each adult 
     resident of a public housing project shall--
       ``(A) contribute 8 hours per month of community service 
     (not including political activities) within the community in 
     which that adult resides; or
       ``(B) participate in an economic self-sufficiency program 
     (as that term is defined in subsection (g)) for 8 hours per 
     month.
       ``(2) Exemptions.--The Secretary shall provide an exemption 
     from the applicability of paragraph (1) for any individual 
     who--
       ``(A) is 62 years of age or older;
       ``(B) is a blind or disabled individual, as defined under 
     section 216(i)(1) or 1614 of the Social Security Act (42 
     U.S.C. 416(i)(1); 1382c), and who is unable to comply with 
     this section, or is a primary caretaker of such individual;
       ``(C) is engaged in a work activity (as such term is 
     defined in section 407(d) of the Social Security Act (42 
     U.S.C. 607(d)), as in effect on and after July 1, 1997));
       ``(D) meets the requirements for being exempted from having 
     to engage in a work activity under the State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) or under any other welfare program of the 
     State in which the public housing agency is located, 
     including a State-administered welfare-to-work program; or
       ``(E) is in a family receiving assistance under a State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) or under any other 
     welfare program of the State in which the public housing 
     agency is located, including a State-administered welfare-to-
     work program, and has not been found by the State or other 
     administering entity to be in noncompliance with such 
     program.
       ``(3) Annual determinations.--
       ``(A) Requirement.--For each public housing resident 
     subject to the requirement under paragraph (1), the public 
     housing agency shall, 30 days before the expiration of each 
     lease term of the resident under section 6(l)(1), review and 
     determine the compliance of the resident with the requirement 
     under paragraph (1) of this subsection.
       ``(B) Due process.--Such determinations shall be made in 
     accordance with the principles of due process and on a 
     nondiscriminatory basis.
       ``(C) Noncompliance.-- If an agency determines that a 
     resident subject to the requirement under paragraph (1) has 
     not complied with the requirement, the agency--
       ``(i) shall notify the resident--

       ``(I) of such noncompliance;
       ``(II) that the determination of noncompliance is subject 
     to the administrative grievance procedure under subsection 
     (k); and
       ``(III) that, unless the resident enters into an agreement 
     under clause (ii) of this subparagraph, the resident's lease 
     will not be renewed; and

       ``(ii) may not renew or extend the resident's lease upon 
     expiration of the lease term and shall take such action as is 
     necessary to terminate the tenancy of the household, unless 
     the agency enters into an agreement, before the expiration of 
     the lease term, with the resident providing for the resident 
     to cure any noncompliance with the requirement under 
     paragraph (1), by participating in an economic self-
     sufficiency program for or contributing to community service 
     as many

[[Page H9381]]

     additional hours as the resident needs to comply in the 
     aggregate with such requirement over the 12-month term of the 
     lease.
       ``(4) Ineligibility for occupancy for noncompliance.--A 
     public housing agency may not renew or extend any lease, or 
     provide any new lease, for a dwelling unit in public housing 
     for any household that includes an adult member who was 
     subject to the requirement under paragraph (1) and failed to 
     comply with the requirement.
       ``(5) Inclusion in plan.--Each public housing agency shall 
     include in its public housing agency plan a detailed 
     description of the manner in which the agency intends to 
     implement and administer this subsection.
       ``(6) Geographic location.--The requirement under paragraph 
     (1) may include community service or participation in an 
     economic self-sufficiency program performed at a location not 
     owned by the public housing agency.
       ``(7) Prohibition against replacement of employees.--In 
     carrying out this subsection, a public housing agency may 
     not--
       ``(A) substitute community service or participation in an 
     economic self-sufficiency program, as described in paragraph 
     (1), for work performed by a public housing employee; or
       ``(B) supplant a job at any location at which community 
     work requirements are fulfilled.
       ``(8) Third-party coordinating.--A public housing agency 
     may administer the community service requirement under this 
     subsection directly, through a resident organization, or 
     through a contractor having experience in administering 
     volunteer-based community service programs within the service 
     area of the public housing agency. The Secretary may 
     establish qualifications for such organizations and 
     contractors.
       ``(d) 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 tenant-based assistance under 
     section 8.
       ``(2) Decreases in income for failure to comply.--
       ``(A) In general.--Notwithstanding the provisions of 
     section 3(a) (relating to family rental contributions) or 
     paragraph (4) or (5) of section 3(b) (relating to definition 
     of income and adjusted income), 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 or imposing a work activities requirement, 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).
       ``(B) No reduction based on time limit for assistance.--For 
     purposes of this paragraph, a reduction in benefits as a 
     result of the expiration of a lifetime time limit for a 
     family receiving welfare or public assistance benefits shall 
     not be considered to be a failure to comply with the 
     conditions under the assistance program requiring 
     participation in an economic self-sufficiency program or 
     imposing a work activities requirement. This paragraph shall 
     apply beginning upon the date of the enactment of the Quality 
     Housing and Work Responsibility Act of 1998.
       ``(3) Effect of fraud.--Notwithstanding the provisions of 
     section 3(a) (relating to family rental contributions) or 
     paragraph (4) or (5) of section 3(b) (relating to definition 
     of income and adjusted income), 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). 
     This paragraph shall apply beginning upon the date of the 
     enactment of the Quality Housing and Work Responsibility Act 
     of 1998.
       ``(4) Notice.--Paragraphs (2) and (3) shall not apply to 
     any covered family before the public housing agency providing 
     assistance under this Act 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 or work activities 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 tenant-based assistance under section 8.
       ``(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 6(k) 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 tenant-based assistance 
     under section 8 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 (c) 
     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 projects and families receiving 
     tenant-based assistance under section 8, which may include 
     providing for economic 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 prohibited by, or in 
     contravention of, any other provision of Federal, State, or 
     local law.
       ``(e) Lease Provisions.--A public housing agency shall 
     incorporate into leases under section 6(l) and into 
     agreements for the provision of tenant-based assistance under 
     section 8, provisions incorporating the conditions under 
     subsection (d).
       ``(f) Treatment of Income.--Notwithstanding any other 
     provision of this section, in determining the income of a 
     family who resides in public housing or receives tenant-based 
     assistance under section 8, 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.''.
       (b) 1-Year Leases.--Section 6(l) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
       (1) by redesignating paragraphs (1) through (6) as 
     paragraphs (2) through (7), respectively;
       (2) by redesignating paragraph (7) as paragraph (9); and
       (3) by inserting before paragraph (2) the following new 
     paragraph:
       ``(1) have a term of 12 months and shall be automatically 
     renewed for all purposes except for noncompliance with the 
     requirements under section 12(c) (relating to community 
     service requirements); except that nothing in this title 
     shall prevent a resident from seeking timely redress in court 
     for failure to renew based on such noncompliance;''.

     SEC. 513. INCOME TARGETING.

       (a) In General.--Section 16 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437n) is amended by striking the 
     section designation and all that follows through the end of 
     subsection (d) and inserting the following:
       ``Sec. 16. (a) Income Eligibility for Public Housing.--
       ``(1) Income mix within projects.--A public housing agency 
     may establish and utilize income-mix criteria for the 
     selection of residents for dwelling units in public housing 
     projects, subject to the requirements of this section.
       ``(2) PHA income mix.--
       ``(A) Targeting.--Except as provided in paragraph (4), of 
     the public housing dwelling units of a public housing agency 
     made available for occupancy in any fiscal year by eligible 
     families, not less than 40 percent shall be occupied by 
     families whose incomes at the time of commencement of 
     occupancy do not exceed 30 percent of the area median income, 
     as determined by the Secretary with adjustments for smaller 
     and larger families.
       ``(3) Prohibition of concentration of low-income 
     families.--
       ``(A) Prohibition.--A public housing agency may not, in 
     complying with the requirements under paragraph (2), 
     concentrate very low-income families (or other families with 
     relatively low incomes) in public housing dwelling units in 
     certain public housing projects or certain buildings within 
     projects. The Secretary shall review the income and occupancy 
     characteristics of the public housing projects and the 
     buildings of such projects of such agencies to ensure 
     compliance with the provisions of this paragraph and 
     paragraph (2).
       ``(B) Deconcentration.--
       ``(i) In general.--A public housing agency shall submit 
     with its annual public housing agency plan under section 5A 
     an admissions policy designed to provide for deconcentration 
     of poverty and income-mixing by bringing higher income 
     tenants into lower income projects and lower income tenants 
     into higher income projects. This clause may not be construed 
     to impose or require any specific income or racial quotas for 
     any project or projects.
       ``(ii) Incentives.--In implementing the policy under clause 
     (i), a public housing agency may offer incentives for 
     eligible families having higher incomes to occupy dwelling 
     unit in projects

[[Page H9382]]

     predominantly occupied by eligible families having lower 
     incomes, and provide for occupancy of eligible families 
     having lower incomes in projects predominantly occupied by 
     eligible families having higher incomes.
       ``(iii) Family choice.--Incentives referred to in clause 
     (ii) may be made available by a public housing agency only in 
     a manner that allows for the eligible family to have the sole 
     discretion in determining whether to accept the incentive and 
     an agency may not take any adverse action toward any eligible 
     family for choosing not to accept an incentive and occupancy 
     of a project described in clause (i)(II), Provided, That the 
     skipping of a family on a waiting list to reach another 
     family to implement the policy under clause (i) shall not be 
     considered an adverse action. An agency implementing an 
     admissions policy under this subparagraph shall implement the 
     policy in a manner that does not prevent or interfere with 
     the use of site-based waiting lists authorized under section 
     6(s).
       ``(4) Fungibility with tenant-based assistance.--
       ``(A) Authority.--Except as provided under subparagraph 
     (D), the number of public housing dwelling units that a 
     public housing agency shall otherwise make available in 
     accordance with paragraph (2)(A) to comply with the 
     percentage requirement under such paragraph for a fiscal year 
     shall be reduced by the credit number for the agency under 
     subparagraph (B).
       ``(B) Credit for exceeding tenant-based assistance 
     targeting requirement.--Subject to subparagraph (C), the 
     credit number under this subparagraph for a public housing 
     agency for a fiscal year shall be the number by which--
       ``(i) the aggregate number of qualified families who, in 
     such fiscal year, are initially provided tenant-based 
     assistance under section 8 by the agency; exceeds
       ``(ii) the number of qualified families that is required 
     for the agency to comply with the percentage requirement 
     under subsection (b)(1) for such fiscal year.
       ``(C) Limitations on credit number.--The credit number 
     under subparagraph (B) for a public housing agency for a 
     fiscal year may not in any case exceed the lesser of--
       ``(i) the number of dwelling units that is equivalent to 10 
     percent of the aggregate number of families initially 
     provided tenant-based assistance under section 8 by the 
     agency in such fiscal year; or
       ``(ii) the number of public housing dwelling units of the 
     agency that--

       ``(I) are in projects that are located in census tracts 
     having a poverty rate of 30 percent or more; and
       ``(II) are made available for occupancy during such fiscal 
     year and are actually filled only by families whose incomes 
     at the time of commencement of such occupancy exceed 30 
     percent of the area median income, as determined by the 
     Secretary with adjustments for smaller and larger families.

       ``(D) Fungibility floor.--Notwithstanding any authority 
     under subparagraph (A), of the public housing dwelling units 
     of a public housing agency made available for occupancy in 
     any fiscal year by eligible families, not less than 30 
     percent shall be occupied by families whose incomes at the 
     time of commencement of occupancy do not exceed 30 percent of 
     the area median income, as determined by the Secretary with 
     adjustments for smaller and larger families.
       ``(E) Qualified family.--For purposes of this paragraph, 
     the term `qualified family' means a family having an income 
     described in subsection (b)(1).
       ``(b) Income Eligibility for Tenant-Based Section 8 
     Assistance.--
       ``(1) In general.--Of the families initially provided 
     tenant-based assistance under section 8 by a public housing 
     agency in any fiscal year, not less than 75 percent shall be 
     families whose incomes do not exceed 30 percent of the area 
     median income, as determined by the Secretary with 
     adjustments for smaller and larger families; except that the 
     Secretary may establish income ceilings 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.
       ``(2) Jurisdictions served by multiple pha's.--In the case 
     of any 2 or more public housing agencies that administer 
     tenant-based assistance under section 8 with respect solely 
     to identical geographical areas, such agencies shall be 
     treated as a single public housing agency for purposes of 
     paragraph (1).
       ``(c) Income Eligibility for Project-Based Section 8 
     Assistance.--
       ``(1) Pre-1981 act projects.--Not more than 25 percent of 
     the dwelling units that were available for occupancy under 
     section 8 housing assistance payments contracts under this 
     Act before the effective date of the Housing and Community 
     Development Amendments of 1981, and which will be leased on 
     or after such effective date shall be available for leasing 
     by low-income families other than very low-income families.
       ``(2) Post-1981 act projects.--Not more than 15 percent of 
     the dwelling units which become available for occupancy under 
     section 8 housing assistance payments contracts under this 
     Act on or after the effective date of the Housing and 
     Community Development Amendments of 1981 shall be available 
     for leasing by low-income families other than very low-income 
     families.
       ``(3) Targeting.--For each project assisted under a 
     contract for project-based assistance, of the dwelling units 
     that become available for occupancy in any fiscal year that 
     are assisted under the contract, not less than 40 percent
       ``(4) Prohibition of skipping.--In developing admission 
     procedures implementing paragraphs (1), (2), and (3), the 
     Secretary shall prohibit project owners from selecting 
     families for residence in an order different from the order 
     on the waiting list for the purpose of selecting relatively 
     higher income families for residence. Nothing in this 
     paragraph or this subsection may be construed to prevent an 
     owner of housing assisted under a contract for project-based 
     assistance from establishing a preference for occupancy in 
     such housing for families containing a member who is 
     employed.
       ``(5) Exception.--The limitations established in paragraphs 
     (1), (2), and (3) shall not apply to dwelling units made 
     available under project-based contracts under section 8 for 
     the purpose of preventing displacement, or ameliorating the 
     effects of displacement.
       ``(6) Definition.--For purposes of this subsection, the 
     term `project-based assistance' means assistance under any of 
     the following programs:
       ``(A) The new construction or substantial rehabilitation 
     program under section 8(b)(2) (as in effect before October 1, 
     1983).
       ``(B) The property disposition program under section 8(b) 
     (as in effect before the effective date under section 503(a) 
     of the Quality Housing and Work Responsibility Act of 1998).
       ``(C) The loan management set-aside program under 
     subsections (b) and (v) of section 8.
       ``(D) The project-based certificate program under section 
     8(d)(2).
       ``(E) The moderate rehabilitation program under section 
     8(e)(2) (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 (as in effect before the effective date 
     under section 503(a) of the Quality Housing and Work 
     Responsibility Act of 1998), 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.
       ``(d) Establishment of Different Standards.--
     Notwithstanding subsection (a)(2) or (b)(1), if approved by 
     the Secretary, a public housing agency may for good cause 
     establish and implement, in accordance with the public 
     housing agency plan, an admission standard other than the 
     standard under such subsection.''.
       (b) Effective Date.--This section shall take effect on, and 
     the amendments under this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 514. REPEAL OF FEDERAL PREFERENCES.

       (a) Public Housing.--
       (1) In general.--Subparagraph (A) of section 6(c)(4) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437d)(c)(4)) is 
     amended to read as follows:
       ``(A) making dwelling units in public housing available for 
     occupancy, which shall provide that the public housing agency 
     may establish a system for making dwelling units available 
     that provides preference for such occupancy to families 
     having certain characteristics; each system of preferences 
     established pursuant to this subparagraph 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 5A(f) and under 
     the requirements applicable to the comprehensive housing 
     affordability strategy for the relevant jurisdiction;''.
       (2) Conforming amendments.--
       (A) Public housing assistance for foster care children.--
     Section 6(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437d(o)) is amended by striking ``Subject'' and all 
     that follows through ``, in'' and inserting ``In''.
       (B) Youthbuild program.--Section 455(a)(2)(D)(iii) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899d(a)(2)(D)(iii) is amended striking ``section 
     6(c)(4)(A)'' and inserting ``any system of preferences 
     established under section 6(c)(1)''.
       (b) Section 8 Existing and Moderate Rehabilitation.--
       (1) In general.--Subparagraph (A) of section 8(d)(1) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) 
     is amended to read as follows:
       ``(A) the selection of tenants shall be the function of the 
     owner, subject to the annual contributions contract between 
     the Secretary and the agency, except that with respect to the 
     certificate and moderate rehabilitation programs only, for 
     the purpose of selecting families to be assisted, the public 
     housing agency may establish local preferences, consistent 
     with the public housing agency plan submitted under section 
     5A by the public housing agency;''.
       (2) Conforming amendments.--
       (A) Low-income housing preservation and resident 
     homeownership act of 1990.--The second sentence of section 
     226(b)(6)(B) of the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) 
     is amended by striking ``The requirement for giving 
     preferences to certain categories of eligible families under 
     sections 8(d)(1)(A) and 8(o)(3)'' and inserting ``Any system 
     for preferences established under section 8(d)(1)(A) or 
     8(o)(6)(A)''.
       (B) Housing and community development act of 1992.--Section 
     655 of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13615) is amended by striking ``shall be given'' and 
     all that follows through the period at the end and inserting 
     the following: ``shall be given to disabled families 
     according to any preferences established under any system 
     established under section 8(d)(1)(A) by the public housing 
     agency.''.
       (C) Management and disposition of multifamily housing 
     projects.--Section 203(g)(2) of the Housing and Community 
     Development

[[Page H9383]]

     Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)) is amended by 
     striking ``the preferences for assistance under sections 
     6(c)(4)(A)(i), 8(d)(1)(A)(i), and 8(o)(3)(B)'' and inserting 
     ``any system of preferences established pursuant to section 
     6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A)''.
       (D) Other references.--Subparagraph (D) of section 
     402(d)(6) of The Balanced Budget Downpayment Act, I (42 
     U.S.C. 1437d note) is hereby repealed.
       (c) Section 8 New Construction and Substantial 
     Rehabilitation.--
       (1) Permanent repeal.--Subsection (c) of section 545 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437f note) is hereby repealed.
       (2) Prohibition.--Notwithstanding any other provision of 
     law (including subsection (f) of this section), section 
     402(d)(4)(B) of The Balanced Budget Downpayment Act, I (42 
     U.S.C. 1437a note) shall apply to fiscal year 1999 and 
     thereafter.
       (d) Rent Supplements.--Subsection (k) of section 1010 of 
     the Housing and Urban Development Act of 1965 (12 U.S.C. 
     1701s(k)) is hereby repealed.
       (e) Sense of Congress Regarding Preference for Assistance 
     for Victims of Domestic Violence.--It is the sense of 
     Congress that, each public housing agency involved in the 
     selection of eligible families for assistance under the 
     United States Housing Act of 1937 (including residency in 
     public housing and tenant-based assistance under section 8 of 
     such Act) should, consistent with the public housing agency 
     plan of the agency, consider preferences for individuals who 
     are victims of domestic violence.
       (f) Termination of Temporary Provisions.--Section 402 of 
     The Balanced Budget Downpayment Act, I, and the amendments 
     made by such section shall cease to be effective on the date 
     of the enactment of this Act. Notwithstanding the inclusion 
     in this Act of any provision extending the effectiveness of 
     such section or such amendments, such provision included in 
     this Act shall not take effect.
       (g) Applicability.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING 
                   AGENCIES; REPEAL OF ENERGY CONSERVATION 
                   PROVISIONS.

       Section 13 of the United States Housing Act of 1937 (42 
     U.S.C. 1437k) is amended to read as follows:

     ``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND 
                   SUBSIDIARIES OF PUBLIC HOUSING AGENCIES.

       ``(a) Consortia.--
       ``(1) In general.--Any 2 or more public housing agencies 
     may participate in a consortium for the purpose of 
     administering any or all of the housing programs of those 
     public housing agencies in accordance with this section.
       ``(2) Effect.--With respect to any consortium described in 
     paragraph (1)--
       ``(A) any assistance made available under this title to 
     each of the public housing agencies participating in the 
     consortium shall be paid to the consortium; and
       ``(B) all planning and reporting requirements imposed upon 
     each public housing agency participating in the consortium 
     with respect to the programs operated by the consortium shall 
     be consolidated.
       ``(3) Restrictions.--
       ``(A) Agreement.--Each consortium described in paragraph 
     (1) shall be formed and operated in accordance with a 
     consortium agreement, and shall be subject to the 
     requirements of a joint public housing agency plan, which 
     shall be submitted by the consortium in accordance with 
     section 5A.
       ``(B) Minimum requirements.--The Secretary shall specify 
     minimum requirements relating to the formation and operation 
     of consortia and the minimum contents of consortium 
     agreements under this paragraph.
       ``(b) Joint Ventures.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a public housing agency, in accordance with the public 
     housing agency plan, may--
       ``(A) form and operate wholly owned or controlled 
     subsidiaries (which may be nonprofit corporations) and other 
     affiliates, any of which may be directed, managed, or 
     controlled by the same persons who constitute the board of 
     directors or similar governing body of the public housing 
     agency, or who serve as employees or staff of the public 
     housing agency; or
       ``(B) enter into joint ventures, partnerships, or other 
     business arrangements with, or contract with, any person, 
     organization, entity, or governmental unit--
       ``(i) with respect to the administration of the programs of 
     the public housing agency, including any program that is 
     subject to this title; or
       ``(ii) for the purpose of providing or arranging for the 
     provision of supportive or social services.
       ``(2) Use of and treatment income.--Any income generated 
     under paragraph (1)--
       ``(A) shall be used for low-income housing or to benefit 
     the residents assisted by the public housing agency; and
       ``(B) shall not result in any decrease in any amount 
     provided to the public housing agency under this title, 
     except as otherwise provided under the formulas established 
     under section 9(d)(2) and 9(e)(2).
       ``(3) Audits.--The Comptroller General of the United 
     States, the Secretary, or the Inspector General of the 
     Department of Housing and Urban Development may conduct an 
     audit of any activity undertaken under paragraph (1) at any 
     time.''.

     SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY 
                   INTERESTS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 30. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

       ``(a) General Authorization.--The Secretary may, upon such 
     terms and conditions as the Secretary may prescribe, 
     authorize a public housing agency to mortgage or otherwise 
     grant a security interest in any public housing project or 
     other property of the public housing agency.
       ``(b) Terms and Conditions.--In making any authorization 
     under subsection (a), the Secretary may consider--
       ``(1) the ability of the public housing agency to use the 
     proceeds of the mortgage or security interest for low-income 
     housing uses;
       ``(2) the ability of the public housing agency to make 
     payments on the mortgage or security interest; and
       ``(3) such other criteria as the Secretary may specify.
       ``(c) No Federal Liability.--No action taken under this 
     section shall result in any liability to the Federal 
     Government.''.

     SEC. 517. MENTAL HEALTH ACTION PLAN.

       The Secretary of Housing and Urban Development, in 
     consultation with the Secretary of Health and Human Services, 
     the Secretary of Labor, and appropriate State and local 
     officials and representatives, shall--
       (1) develop an action plan and list of recommendations for 
     the improvement of means of providing severe mental illness 
     treatment to families and individuals receiving housing 
     assistance under the United States Housing Act of 1937, 
     including public housing residents, residents of multifamily 
     housing assisted with project-based assistance under section 
     8 of such Act, and recipients of tenant-based assistance 
     under such section; and
       (2) develop and disseminate a list of current practices 
     among public housing agencies and owners of assisted housing 
     that serve to benefit persons in need of mental health 
     care.''.
                       Subtitle B--Public Housing

                PART 1--CAPITAL AND OPERATING ASSISTANCE

     SEC. 518. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

       (a) Repeals.--
       (1) In general.--Section 5 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437c) is amended--
       (A) by striking subsections (h) through (k); and
       (B) by redesignating subsection (l), as added by the 
     preceding provisions of this Act, as subsection (i).
       (2) Conforming amendments.--The United States Housing Act 
     of 1937 is amended--
       (A) in section 21(d) (42 U.S.C. 1437s(d)), by striking 
     ``section 5(h) or''; and
       (C) in section 307 (42 U.S.C. 1437aaa-6), by striking 
     ``section 5(h) and''.
       (b) Local Notification.--Section 5(e)(2) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437c(e)(2)) is amended 
     by inserting before the period at the end the following: ``; 
     the Secretary shall require that each such agreement shall 
     provide that, notwithstanding any order, judgment, or decree 
     of any court (including any settlement order), before making 
     any amounts that are provided pursuant to any contract for 
     contributions under this title available for use for the 
     development of any housing or other property not previously 
     used as public housing, the public housing agency shall (A) 
     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 (B) 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)''.

     SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

       (a) In General.--Section 9 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437g) is amended to read as follows:

     ``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

       ``(a) Merger Into Capital Fund.--Except as otherwise 
     provided in the Quality Housing and Work Responsibility Act 
     of 1998, any assistance made available for public housing 
     under section 14 of this Act before October 1, 1999, shall be 
     merged into the Capital Fund established under subsection 
     (d).
       ``(b) Merger Into Operating Fund.--Except as otherwise 
     provided in the Quality Housing and Work Responsibility Act 
     of 1998, any assistance made available for public housing 
     under section 9 of this Act before October 1, 1999, shall be 
     merged into the Operating Fund established under subsection 
     (e).
       ``(c) Allocation Amount.--
       ``(1) In General.--For fiscal year 2000 and each fiscal 
     year thereafter, the Secretary shall allocate amounts in the 
     Capital Fund and Operating Funds for assistance for public 
     housing agencies eligible for such assistance. The Secretary 
     shall determine the amount of the allocation for each 
     eligible agency, which shall be, for any fiscal year 
     beginning after the effective date of the formulas described 
     in subsections (d)(2) and (e)(2)--
       ``(A) for assistance from the Capital Fund, the amount 
     determined for the agency under the formula under subsection 
     (d)(2); and
       ``(B) for assistance from the Operating Fund, the amount 
     determined for the agency under the formula under subsection 
     (e)(2).
       ``(2) Funding.--There are authorized to be appropriated for 
     assistance for public housing agencies under this section the 
     following amounts:
       ``(A) Capital fund.--For allocations of assistance from the 
     Capital Fund, $3,000,000,000 for

[[Page H9384]]

     fiscal year 1999, and such sums as may be necessary for 
     fiscal years 2000, 2001, 2002, and 2003.
       ``(B) Operating fund.--For allocations of assistance from 
     the Operating Fund, $2,900,000,000 for fiscal year 1999, and 
     such sums as may be necessary for each of fiscal years 2000, 
     2001, 2002, and 2003.
       ``(d) Capital Fund.--
       ``(1) In general.--The Secretary shall establish a Capital 
     Fund for the purpose of making assistance available to public 
     housing agencies to carry out capital and management 
     activities, including--
       ``(A) the development, financing, and modernization of 
     public housing projects, including the redesign, 
     reconstruction, and reconfiguration of public housing sites 
     and buildings (including accessibility improvements) and the 
     development of mixed-finance projects;
       ``(B) vacancy reduction;
       ``(C) addressing deferred maintenance needs and the 
     replacement of obsolete utility systems and dwelling 
     equipment;
       ``(D) planned code compliance;
       ``(E) management improvements;
       ``(F) demolition and replacement;
       ``(G) resident relocation;
       ``(H) capital expenditures to facilitate programs to 
     improve the empowerment and economic self-sufficiency of 
     public housing residents and to improve resident 
     participation;
       ``(I) capital expenditures to improve the security and 
     safety of residents; and
       ``(J) homeownership activities, including programs under 
     section 32.
       ``(2) Formula.--The Secretary shall develop a formula for 
     determining the amount of assistance provided to public 
     housing agencies from the Capital Fund for a fiscal year, 
     which shall include a mechanism to reward performance. The 
     formula may take into account such factors as--
       ``(A) the number of public housing dwelling units owned, 
     assisted, or operated by the public housing agency, the 
     characteristics and locations of the projects, 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, replacement 
     housing, and reconstruction, construction, and demolition 
     activities related to public housing dwelling units owned, 
     assisted, 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;
       ``(D) the need of the public housing agency to carry out 
     activities that provide a safe and secure environment in 
     public housing units owned, assisted, or operated by the 
     public housing agency;
       ``(E) any record by the public housing agency of exemplary 
     performance in the operation of public housing, as indicated 
     by the system of performance indicators established pursuant 
     to section 6(j); and
       ``(F) any other factors that the Secretary determines to be 
     appropriate.
       ``(3) Conditions on use for development and 
     modernization.--
       ``(A) Development.--Except as otherwise provided in this 
     Act, any public housing developed using amounts provided 
     under this subsection, or under section 14 as in effect 
     before the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998, shall be 
     operated under the terms and conditions applicable to public 
     housing during the 40-year period that begins on the date on 
     which the project (or stage of the project) becomes available 
     for occupancy.
       ``(B) Modernization.--Except as otherwise provided in this 
     Act, any public housing or portion thereof that is modernized 
     using amounts provided under this subsection or under section 
     14 (as in effect before the effective date under section 
     503(a) of the Quality Housing and Work Responsibility Act of 
     1998) shall be maintained and operated under the terms and 
     conditions applicable to public housing during the 20-year 
     period that begins on the latest date on which modernization 
     is completed.
       ``(C) Applicability of latest expiration date.--Public 
     housing subject to this paragraph or to any other provision 
     of law mandating the operation of the housing as public 
     housing or under the terms and conditions applicable to 
     public housing for a specified length of time, shall be 
     maintained and operated as required until the latest such 
     expiration date.
       ``(e) Operating Fund.--
       ``(1) In general.--The Secretary shall establish an 
     Operating Fund for the purpose of making assistance available 
     to public housing agencies for the operation and management 
     of public housing, including--
       ``(A) procedures and systems to maintain and ensure the 
     efficient management and operation of public housing units 
     (including amounts sufficient to pay for the reasonable costs 
     of review by an independent auditor of the documentation or 
     other information maintained pursuant to section 6(j)(6) by a 
     public housing agency or resident management corporation to 
     substantiate the performance of that agency or corporation);
       ``(B) activities to ensure a program of routine 
     preventative maintenance;
       ``(C) anticrime and antidrug activities, including the 
     costs of providing adequate security for public housing 
     residents, including above-baseline police service 
     agreements;
       ``(D) activities related to the provision of services, 
     including service coordinators for elderly persons or persons 
     with disabilities;
       ``(E) activities to provide for management and 
     participation in the management and policy making of public 
     housing by public housing residents;
       ``(F) the costs of insurance;
       ``(G) the energy costs associated with public housing 
     units, with an emphasis on energy conservation;
       ``(H) the costs of administering a public housing work 
     program under section 12, including the costs of any related 
     insurance needs;
       ``(I) the costs of repaying, together with rent 
     contributions, debt incurred to finance the rehabilitation 
     and development of public housing units, which shall be 
     subject to such reasonable requirements as the Secretary may 
     establish; and
       ``(J) the costs associated with the operation and 
     management of mixed finance projects, to the extent 
     appropriate.
       ``(2) Formula.--
       ``(A) In general.--The Secretary shall establish a formula 
     for determining the amount of assistance provided to public 
     housing agencies from the Operating Fund for a fiscal year. 
     The formula may take into account--
       ``(i) standards for the costs of operating and reasonable 
     projections of income, taking into account the 
     characteristics and locations of the public housing projects 
     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 project;
       ``(ii) the number of public housing dwelling units owned, 
     assisted, or operated by the public housing agency;
       ``(iii) the number of public housing dwelling units owned, 
     assisted, or operated by the public housing agency that are 
     chronically vacant and the amount of assistance appropriate 
     for those units;
       ``(iv) to the extent quantifiable, the extent to which the 
     public housing agency provides programs and activities 
     designed to promote the economic self-sufficiency and 
     management skills of public housing residents;
       ``(v) the need of the public housing agency to carry out 
     anti-crime and anti-drug activities, including providing 
     adequate security for public housing residents;
       ``(vi) the amount of public housing rental income foregone 
     by the public housing agency as a result of escrow savings 
     accounts under section 23(d)(2) for families participating in 
     a family self-sufficiency program of the agency under such 
     section 23; and
       ``(vii) any other factors that the Secretary determines to 
     be appropriate.
       ``(B) Incentive to increase certain rental income.--The 
     formula shall provide an incentive to encourage public 
     housing agencies to facilitate increases in earned income by 
     families in occupancy. Any such incentive shall provide that 
     the agency shall benefit from increases in such rental income 
     and that such amounts accruing to the agency pursuant to such 
     benefit may be used only for low-income housing or to benefit 
     the residents of the public housing agency.
       ``(C) Treatment of savings.--The treatment of utility and 
     waste management costs under the formula shall provide that a 
     public housing agency shall receive the full financial 
     benefit from any reduction in the cost of utilities or waste 
     management resulting from any contract with a third party to 
     undertake energy conservation improvements in one or more of 
     its public housing projects.
       ``(3) Condition on use.--No portion of any public housing 
     project operated using amounts provided under this 
     subsection, or under this section as in effect before the 
     effective date under section 503(a) of the Quality Housing 
     and Work Responsibility Act of 1998, may be disposed of 
     before the expiration of the 10-year period beginning upon 
     the conclusion of the fiscal year for which such amounts were 
     provided, except as otherwise provided in this Act.
       ``(f) Negotiated Rulemaking Procedure.--The formulas under 
     subsections (d)(2) and (e)(2) 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.
       ``(g) Limitations on Use of Funds.--
       ``(1) Flexibility for capital fund amounts.--Of any amounts 
     appropriated for fiscal year 2000 or any fiscal year 
     thereafter that are allocated for fiscal year 2000 or any 
     fiscal year thereafter from the Capital Fund for any public 
     housing agency, the agency may use not more than 20 percent 
     for activities that are eligible under subsection (e) for 
     assistance with amounts from the Operating Fund, but only if 
     the public housing agency plan for the agency provides for 
     such use.
       ``(2) Full flexibility for small pha's.--Of any amounts 
     allocated for any fiscal year for any public housing agency 
     that owns or operates less than 250 public housing dwelling 
     units, is not designated pursuant to section 6(j)(2) as a 
     troubled public housing agency, and (in the determination of 
     the Secretary) is operating and maintaining its public 
     housing in a safe, clean, and healthy condition, the agency 
     may use any such amounts for any eligible activities under 
     subsections (d)(1) and (e)(1), regardless of the fund from 
     which the amounts were allocated and provided. This 
     subsection shall take effect on the date of the enactment of 
     the Quality Housing and Work Responsibility Act of 1998.
       ``(3) Limitation on new construction.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), a public housing agency may not use any of the 
     amounts allocated for the agency from the Capital Fund or 
     Operating Fund for the purpose of constructing any public 
     housing unit, if such construction would result in a net 
     increase from the number of public housing units owned, 
     assisted, or operated by the public housing agency on October 
     1, 1999, including any public housing units demolished as 
     part of any revitalization effort.
       ``(B) Exception regarding use of assistance.--A public 
     housing agency may use

[[Page H9385]]

     amounts allocated for the agency from the Capital Fund or 
     Operating Fund for the construction and operation of housing 
     units that are available and affordable to low-income 
     families in excess of the limitations on new construction set 
     forth in subparagraph (A), but the formulas established under 
     subsections (d)(2) and (e)(2) shall not provide additional 
     funding for the specific purpose of allowing construction and 
     operation of housing in excess of those limitations (except 
     to the extent provided in subparagraph (C)).
       ``(C) Exception regarding formulas.--Subject to reasonable 
     limitations set by the Secretary, the formulas established 
     under subsections (d)(2) and (e)(2) may provide additional 
     funding for the operation and modernization costs (but not 
     the initial development costs) of housing in excess of 
     amounts otherwise permitted under this paragraph, and such 
     amounts may be so used, if--
       ``(i) such units are part of a mixed-finance project or 
     otherwise leverage significant additional private or public 
     investment; and
       ``(ii) the estimated cost of the useful life of the project 
     is less than the estimated cost of providing tenant-based 
     assistance under section 8(o) for the same period of time.
       ``(h) Technical Assistance.--To the extent amounts are 
     provided in advance in appropriations Acts, the Secretary may 
     make grants or enter into contracts or cooperative agreements 
     in accordance with this subsection for purposes of providing, 
     either directly or indirectly--
       ``(1) technical assistance to public housing agencies, 
     resident councils, resident organizations, and resident 
     management corporations, including assistance relating to 
     monitoring and inspections;
       ``(2) training for public housing agency employees and 
     residents;
       ``(3) data collection and analysis;
       ``(4) training, technical assistance, and education to 
     public housing agencies that are--
       ``(A) at risk of being designated as troubled under section 
     6(j), to assist such agencies from being so designated; and
       ``(B) designated as troubled under section 6(j), to assist 
     such agencies in achieving the removal of that designation;
       ``(5) contract expertise;
       ``(6) training and technical assistance to assist in the 
     oversight and management of public housing or tenant-based 
     assistance; and
       ``(7) clearinghouse services in furtherance of the goals 
     and activities of this subsection.
     As used in this subsection, the terms `training' and 
     `technical assistance' shall include training or technical 
     assistance and the cost of necessary travel for participants 
     in such training or technical assistance, by or to officials 
     and employees of the Department and of public housing 
     agencies, and to residents and to other eligible grantees.
       ``(i) 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 32 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 no 
     case longer than 5 years.
       ``(j) Penalty for Slow Expenditure of Capital Funds.--
       ``(1) Obligation of amounts.--Except as provided in 
     paragraph (4) and subject to paragraph (2), a public housing 
     agency shall obligate any assistance received under this 
     section not later than 24 months after, as applicable--
       ``(A) the date on which the funds become available to the 
     agency for obligation in the case of modernization; or
       ``(B) the date on which the agency accumulates adequate 
     funds to undertake modernization, substantial rehabilitation, 
     or new construction of units.
       ``(2) Extension of time period for obligation.--The 
     Secretary--
       ``(A) may, extend the time period under paragraph (1) for a 
     public housing agency, for such period as the Secretary 
     determines to be necessary, if the Secretary determines that 
     the failure of the agency to obligate assistance in a timely 
     manner is attributable to--
       ``(i) litigation;
       ``(ii) obtaining approvals of the Federal Government or a 
     State or local government;
       ``(iii) complying with environmental assessment and 
     abatement requirements;
       ``(iv) relocating residents;
       ``(v) an event beyond the control of the public housing 
     agency; or
       ``(vi) any other reason established by the Secretary by 
     notice published in the Federal Register;
       ``(B) shall disregard the requirements of paragraph (1) 
     with respect to any unobligated amounts made available to a 
     public housing agency, to the extent that the total of such 
     amounts does not exceed 10 percent of the original amount 
     made available to the public housing agency; and
       ``(C) may, with the prior approval of the Secretary, extend 
     the time period under paragraph (1), for an additional period 
     not to exceed 12 months, based on--
       ``(i) the size of the public housing agency;
       ``(ii) the complexity of capital program of the public 
     housing agency;
       ``(iii) any limitation on the ability of the public housing 
     agency to obligate the amounts allocated for the agency from 
     the Capital Fund in a timely manner as a result of State or 
     local law; or
       ``(iv) such other factors as the Secretary determines to be 
     relevant.
       ``(3) Effect of failure to comply.--
       ``(A) Prohibition of new assistance.--A public housing 
     agency shall not be awarded assistance under this section for 
     any month during any fiscal year in which the public housing 
     agency has funds unobligated in violation of paragraph (1) or 
     (2).
       ``(B) Withholding of assistance.--During any fiscal year 
     described in subparagraph (A), the Secretary shall withhold 
     all assistance that would otherwise be provided to the public 
     housing agency. If the public housing agency cures its 
     failure to comply during the year, it shall be provided with 
     the share attributable to the months remaining in the year.
       ``(C) Redistribution.--The total amount of any funds not 
     provided public housing agencies by operation of this 
     paragraph shall be allocated for agencies determined under 
     section 6(j) to be high-performing.
       ``(4) Exception to obligation requirements.--
       ``(A) In general.--Subject to subparagraph (B), if the 
     Secretary has consented, before the effective date under 
     section 503(a) of the Quality Housing and Work Responsibility 
     Act of 1998, to an obligation period for any agency longer 
     than provided under paragraph (1), a public housing agency 
     that obligates its funds before the expiration of that period 
     shall not be considered to be in violation of paragraph (1).
       ``(B) Prior fiscal years.--Notwithstanding subparagraph 
     (A), any funds appropriated to a public housing agency for 
     fiscal year 1997 or prior fiscal years shall be fully 
     obligated by the public housing agency not later than 
     September 30, 1999.
       ``(5) Expenditure of amounts.--
       ``(A) In general.--A public housing agency shall spend any 
     assistance received under this section not later than 4 years 
     (plus the period of any extension approved by the Secretary 
     under paragraph (2)) after the date on which funds become 
     available to the agency for obligation.
       ``(B) Enforcement.--The Secretary shall enforce the 
     requirement of subparagraph (A) through default remedies up 
     to and including withdrawal of the funding.
       ``(6) Right of recapture.--Any obligation entered into by a 
     public housing agency shall be subject to the right of the 
     Secretary to recapture the obligated amounts for violation by 
     the public housing agency of the requirements of this 
     subsection.
       ``(k) Emergency Reserve and Use of Amounts.--
       ``(1) Set-asides.--In each fiscal year after fiscal year 
     1999, the Secretary shall set aside, for use in accordance 
     with this subsection, not more than 2 percent of the total 
     amount made available to carry out this section for such 
     fiscal year. In addition to amounts set aside under the 
     preceding sentence, in each fiscal year the Secretary may set 
     from the total amount made available to carry out this 
     section for such fiscal year not more than $20,000,000 for 
     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.
       ``(2) Use of funds.--Amounts set aside under paragraph (1) 
     shall be available to the Secretary for use for assistance, 
     as provided in paragraph (3), in connection with--
       ``(A) emergencies and other disasters; and
       ``(C) housing needs resulting from any settlement of 
     litigation; and
       ``(3) Eligible uses.--In carrying out this subsection, the 
     Secretary may use amounts set aside under this subsection to 
     provide--
       ``(A) assistance for any eligible use under the Operating 
     Fund or the Capital Fund established by this section; or
       ``(B) tenant-based assistance in accordance with section 8.
       ``(4) Limitation.--With respect to any fiscal year, the 
     Secretary may carry over not more than a total of $25,000,000 
     in unobligated amounts set aside under this subsection for 
     use in connection with the activities described in paragraph 
     (2) during the succeeding fiscal year.
       ``(5) Publication.--The Secretary shall publish the use of 
     any amounts allocated under this subsection relating to 
     emergencies (other than disasters and housing needs resulting 
     from any settlement of litigation) in the Federal Register.
       ``(l) Treatment of Nonrental Income.--A public housing 
     agency that receives income from nonrental sources (as 
     determined by the Secretary) may retain and use such amounts 
     without any decrease in the amounts received under this 
     section from the Capital or Operating Fund. Any such 
     nonrental amounts retained shall be used only for low-income 
     housing or to benefit the residents assisted by the public 
     housing agency.
       ``(m) Provision of Only Capital or Operating Assistance.--
       ``(1) Authority.--In appropriate circumstances, as 
     determined by the Secretary, a public housing agency may 
     commit capital assistance only, or operating assistance only, 
     for public housing units, which assistance shall be subject 
     to all of the requirements applicable to public housing 
     except as otherwise provided in this subsection.
       ``(2) Exemptions.--In the case of any public housing unit 
     assisted pursuant to the authority under paragraph (1), the 
     Secretary may, by regulation, reduce the period under 
     subsection (d)(3) or (e)(3), as applicable, during which such 
     units must be operated under requirements applicable to 
     public housing. In cases in which there is commitment of 
     operating assistance but no commitment of capital assistance, 
     the Secretary may make section 8 requirements applicable, as 
     appropriate, by regulation.
       ``(n) Treatment of Public Housing.--
       ``(1) Certain state and city funded housing.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section--
       ``(i) for purposes of determining the allocations from the 
     Operating and Capital Funds

[[Page H9386]]

     pursuant to the formulas under subsections (d)(2) and (e)(2) 
     and determining assistance pursuant to section 519(e) of the 
     Quality Housing and Work Responsibility Act of 1998 and under 
     section 9 or 14 of the United States Housing Act of 1937 (as 
     in effect before the date of the enactment of this Act), for 
     any period before the implementation of such formulas, the 
     Secretary shall deem any covered locally developed public 
     housing units as public housing units developed under this 
     title and such units shall be eligible for such assistance; 
     and
       ``(ii) assistance provided under this section, under such 
     section 518(d)(3), or under such section 9 or 14 to any 
     public housing agency may be used with respect to any covered 
     locally developed public housing units.
       ``(B) Covered units.--For purposes of this paragraph, the 
     term `covered locally developed public housing units' means--
       ``(i) not more than 7,000 public housing units developed 
     pursuant to laws of the State of New York and that received 
     debt service and operating subsidies pursuant to such laws; 
     and
       ``(ii) not more than 5,000 dwelling units developed 
     pursuant to section 34 of chapter 121B of the General Laws of 
     the State of Massachusetts.
       ``(2) Reduction of asthma incidence.--Notwithstanding any 
     other provision of this section, the New York City Housing 
     Authority may, in its sole discretion, from amounts provided 
     from the Operating and Capital Funds, or from amounts 
     provided for public housing before amounts are made available 
     from such Funds, use not more than exceeding $500,000 per 
     year for the purpose of initiating, expanding or continuing a 
     program for the reduction of the incidence of asthma among 
     residents. The Secretary shall consult with the Administrator 
     of the Environmental Protection Agency and the Secretary of 
     Health and Human Services to identify and consider sources of 
     funding for the reduction of the incidence of asthma among 
     recipients of assistance under this title.
       ``(3) Services for elderly residents.--Notwithstanding any 
     other provision of this section, the New York City Housing 
     Authority may, in its sole discretion, from amounts provided 
     from the Operating and Capital Funds, or from amounts 
     provided for public housing before the amounts are made 
     available from such Funds, use not more than $600,000 per 
     year for the purpose of developing a comprehensive plan to 
     address the need for services for elderly residents. Such 
     plan may be developed by a partnership created by such 
     Housing Authority and may include the creation of a model 
     project for assisted living at one or more developments. The 
     model project may provide for contracting with private 
     parties for the delivery of services.
       ``(4) Effective date.--This subsection shall apply to 
     fiscal year 1999 and each fiscal year thereafter.''.
       (b) Allocation of Assistance.--Section 6 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437d) is amended by 
     striking subsection (p).
       (c) Conforming Amendments.--The United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 303(b)(10) (42 U.S.C. 1437aaa-2(b)(10)), by 
     striking ``under section 9'' the first place it appears and 
     inserting ``from the Operating Fund''; and
       (2) in section 305(e) (42 U.S.C. 1437aaa-4(e)), by striking 
     ``Operating subsidies'' and inserting ``Amounts from an 
     allocation from the Operating Fund''.
       (d) Transitional Ceiling Rents.--Notwithstanding section 
     3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 
     1437a(1)), during the period ending upon the later of the 
     implementation of the formulas established pursuant to 
     subsections (d)(2) and (e)(2) of such Act (as amended by this 
     section) and October 1, 1999, a public housing agency may 
     take any of the following actions with respect to public 
     housing:
       (1) New provisions.--An agency may--
       (A) adopt and apply ceiling rents that reflect the 
     reasonable market value of the housing, but that are not less 
     than--
       (i) for housing other than housing predominantly for 
     elderly or disabled families (or both), 75 percent of the 
     monthly cost to operate the housing of the agency;
       (ii) for housing predominantly for elderly or disabled 
     families (or both), 100 percent of the monthly cost to 
     operate the housing of the agency; and
       (iii) the monthly cost to make a deposit to a replacement 
     reserve (in the sole discretion of the public housing 
     agency); and
       (B) allow families to pay ceiling rents referred to in 
     subparagraph (A), unless, with respect to any family, the 
     ceiling rent established under this paragraph would exceed 
     the amount payable as rent by that family under paragraph 
     (1).
       (2) Ceiling rents from balanced budget act, I.--An agency 
     may utilize the authority under section 3(a)(2) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in 
     effect immediately before the enactment of this Act, 
     notwithstanding any amendment to such section made by this 
     Act.
       (3) Transitional ceiling rents for balanced budget act, 
     I.--An agency may utilize the authority with respect to 
     ceiling rents under section 402(b)(2) of The Balanced Budget 
     Downpayment Act, I (42 U.S.C. 1437a note), notwithstanding 
     any other provision of law (including the expiration of the 
     applicability of such section or the repeal of such section).
       (e) Transitional Provision of Assistance.--
       (1) In general.--Subject to paragraph (2), before the 
     implementation of formulas pursuant to sections 9(d)(2) and 
     9(e)(2) of the United States Housing Act of 1937 (as amended 
     by subsection (a) of this section), the Secretary shall 
     provide that each public housing agency shall receive funding 
     under sections 9 and 14 of the United States Housing Act of 
     1937, as those sections existed immediately before the 
     enactment of this Act (except that such sections shall be 
     subject to any amendments to such sections that may be 
     contained in title II of this Act).
       (2) Qualifications.--Before the implementation of formulas 
     pursuant to sections 9(d)(2) and 9(e)(2) of the United States 
     Housing Act of 1937 (as amended by subsection (a) of this 
     section)--
       (A) if a public housing agency establishes a rental amount 
     that is based on a ceiling rent established pursuant to 
     subsection (d)(1) of this section, the Secretary shall take 
     into account any reduction of the per unit dwelling rental 
     income of the public housing agency resulting from the use of 
     that rental amount in calculating the contributions for the 
     public housing agency for the operation of the public housing 
     under section 9 of the United States Housing Act of 1937;
       (B) if a public housing agency establishes a rental amount 
     that is based on an adjustment to income under section 
     3(b)(5)(G) of the United States Housing Act of 1937 (as in 
     effect immediately before the enactment of this Act), the 
     Secretary shall not take into account any reduction of or any 
     increase in the per unit dwelling rental income of the public 
     housing agency resulting from the use of that rental amount 
     in calculating the contributions for the public housing 
     agency for the operation of the public housing under section 
     9 of the United States Housing Act of 1937; and
       (C) if a public housing agency establishes a rental amount 
     other than as provided under subparagraph (A) or (B) that is 
     less than the greatest of the amounts determined under 
     subparagraphs (A), (B), and (C) of section 3(a)(1) of the 
     United States Housing Act of 1937, the Secretary shall not 
     take into account any reduction of the per unit dwelling 
     rental income of the public housing agency resulting from the 
     use of that rental amount in calculating the contributions 
     for the public housing agency for the operation of the public 
     housing under section 9 of the United States Housing Act of 
     1937.
       (f) Effective Date of Operating Formula.--Notwithstanding 
     the effective date under section 503(a), the Secretary may 
     extend the effective date of the formula under section 
     9(e)(2) of the United States Housing Act of 1937 (as amended 
     by subsection (a) of this section) for up to 6 months if such 
     additional time is necessary to implement such formula.
       (g) Effective Date.--Subsections (d), (e), and (f) shall 
     take effect upon the date of the enactment of this Act.

     SEC. 520. TOTAL DEVELOPMENT COSTS.

       (a) Definition.--Section 3(c)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(c)(1)) is amended by 
     inserting before the period at the end of the second sentence 
     the following: `, but does not include the costs costs 
     associated with the demolition of or remediation of 
     environmental hazards associated with public housing units 
     that will not be replaced on the project site, or other 
     extraordinary site costs as determined by the Secretary''.
       (b) Determination.--Section 6(b) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(b)) is amended by adding 
     at the end the following new paragraphs:
       ``(3) In calculating the total development cost of a 
     project under paragraph (2), the Secretary shall consider 
     only capital assistance provided by the Secretary to a public 
     housing agency that are authorized for use in connection with 
     the development of public housing, and shall exclude all 
     other amounts, including amounts provided under--
       ``(A) the HOME investment partnerships program authorized 
     under title II of the Cranston-Gonzalez National Affordable 
     Housing Act; or
       ``(B) the community development block grants program under 
     title I of the Housing and Community Development Act of 1974.
       ``(4) The Secretary may restrict the amount of capital 
     funds that a public housing agency may use to pay for housing 
     construction costs. For purposes of this paragraph, housing 
     construction costs include the actual hard costs for the 
     construction of units, builders' overhead and profit, 
     utilities from the street, and finish landscaping.''.

     SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

       Section 6(j) of the United States Housing Act of 1937 (42 
     U.S.C. 1437d(j)) is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Sanctions for improper use of amounts.--
       ``(A) In general.--In addition to any other actions 
     authorized under this Act, if the Secretary finds that a 
     public housing agency receiving assistance amounts under 
     section 9 for public housing has failed to comply 
     substantially with any provision of this Act relating to the 
     public housing program, the Secretary may--
       ``(i) terminate assistance payments under this section 9 to 
     the agency;
       ``(ii) withhold from the agency amounts from the total 
     allocations for the agency pursuant to section 9;
       ``(iii) reduce the amount of future assistance payments 
     under section 9 to the agency by an amount equal to the 
     amount of such payments that were not expended in accordance 
     with this Act;
       ``(iv) limit the availability of assistance amounts 
     provided to the agency under section 9 to programs, projects, 
     or activities not affected by such failure to comply;
       ``(v) withhold from the agency amounts allocated for the 
     agency under section 8; or
       ``(vi) order other corrective action with respect to the 
     agency.
       ``(B) Termination of compliance action.--If the Secretary 
     takes action under subparagraph (A) with respect to a public 
     housing agency, the Secretary shall--

[[Page H9387]]

       ``(i) in the case of action under subparagraph (A)(i), 
     resume payments of assistance amounts under section 9 to the 
     agency in the full amount of the total allocations under 
     section 9 for the agency at the time that the Secretary first 
     determines that the agency will comply with the provisions of 
     this Act relating to the public housing program;
       ``(ii) in the case of action under clause (ii) or (v) of 
     subparagraph (A), make withheld amounts available as the 
     Secretary considers appropriate to ensure that the agency 
     complies with the provisions of this Act relating to such 
     program;
       ``(iii) in the case of action under subparagraph (A)(iv), 
     release such restrictions at the time that the Secretary 
     first determines that the agency will comply with the 
     provisions of this Act relating to such program; or
       ``(iv) in the case of action under subparagraph (vi), cease 
     such action at the time that the Secretary first determines 
     that the agency will comply with the provisions of this Act 
     relating to such program.''.

     SEC. 522. REPEAL OF MODERNIZATION FUND.

       (a) In General.--Section 14 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437l) is hereby repealed.
       (b) Conforming Amendments.--
       (1) Funds for public housing development.--Section 5(c)(5) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437c(c)(5)) is amended by striking ``for use under section 
     14 or'' and inserting ``for use under section 9 or''.
       (2) Allocation of assistance.--Section 213(d)(1)(B)(ii) of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     1439(d)(1)(B)(i)) is amended by striking ``or 14''.
       (3) Moving to work demonstration.--Section 204 of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (as contained in section 101(e) of the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996; 42 
     U.S.C. 1437f) is amended by adding at the end the following 
     new subsection:
       ``(j) Capital and Operating Fund Assistance.--With respect 
     to any public housing agency participating in the 
     demonstration under this section that receives assistance 
     from the Capital or Operating Fund under section 9 of the 
     United States Housing Act of 1937 (as amended by the Quality 
     Housing and Work Responsibility Act of 1998), for purposes of 
     this section--
       ``(1) any reference to assistance under section 9 of the 
     United States Housing Act of 1937 shall be considered to 
     refer also to assistance provided from the Operating Fund 
     under section 9(e) of such Act (as so amended); and
       ``(2) any reference to assistance under section 14 of the 
     United States Housing Act of 1937 shall be considered to 
     refer also to assistance provided from the Capital Fund under 
     section 9(d) of such Act (as so amended).''.
       (4) Lead-based paint poisoning prevention act.--Section 302 
     of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 
     4822) is amended--
       (A) in subsection (d)(1)--
       (i) by striking ``assisted under section 14'' and inserting 
     ``assisted with capital assistance provided under section 
     9''; and
       (ii) by striking ``assistance under section 14'' and 
     inserting ``capital assistance provided under section 9''; 
     and
       (B) in subsection (f), by striking ``for comprehensive 
     improvement assistance under section 14'' and inserting 
     ``under the Capital Fund under section 9''.
       (5) HOME program assistance.--Section 212(d)(5) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12742(d)(5)) is amended by striking ``section 14'' and 
     inserting ``section 9(d)(1)''.
       (c) Savings Provisions.--
       (1) In general.--Section 14 of the United States Housing 
     Act of 1937 shall apply as provided in section 519(e) of this 
     Act.
       (2) Expansion of use of modernization funding.--Before the 
     implementation of formulas pursuant to sections 9(d)(2) and 
     9(e)(2) of the United States Housing Act of 1937 (as amended 
     by section 519(a) of this Act) an agency may utilize any 
     authority provided under or pursuant to section 14(q) of such 
     Act (including the authority under section 201(a) of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (Public Law 104-134; 110 Stat. 1321-277)), as such 
     provisions (including such section 201(a)) may be amended 
     thereafter, including any amendment made by title II of this 
     Act), notwithstanding any other provision of law (including 
     the repeal made under this section, the expiration of the 
     applicability of such section 201, or any repeal of such 
     section 201).
       (3) Effective date.--This subsection shall take effect on 
     the date of the enactment of this Act.

             PART 2--ADMISSIONS AND OCCUPANCY REQUIREMENTS

     SEC. 523. FAMILY CHOICE OF RENTAL PAYMENT.

       Paragraph (2) of section 3(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended to read as 
     follows:
       ``(2) Rental payments for public housing families.--
       ``(A) Authority for family to select.--
       ``(i) In general.--A family residing in a public housing 
     dwelling shall pay as monthly rent for the unit the amount 
     determined under clause (i) or (ii) of subparagraph (B), 
     subject to the requirement under paragraph (3) (relating to 
     minimum rents). Each public housing agency shall provide for 
     each family residing in a public housing dwelling unit owned, 
     assisted, or operated by the agency to elect annually whether 
     the rent paid by such family shall be determined under clause 
     (i) or (ii) of subparagraph (B). A public housing agency may 
     not at any time fail to provide both such rent options for 
     any public housing dwelling unit owned, assisted, or operated 
     by the agency.
       ``(ii) Authority to retain flat and ceiling rents.--
     Notwithstanding clause (i) or any other provision of law, any 
     public housing agency that is administering flat rents or 
     ceiling rents pursuant to any authority referred to in 
     section 519(d) of the Quality Housing and Work Responsibility 
     Act of 1998 before the effective day of such Act may continue 
     to charge rent in accordance with such rent provisions after 
     such effective date, except that the agency shall provide for 
     families residing in public housing dwelling units owned or 
     operated by the agency to elect annually whether to pay rent 
     under such provisions or in accordance with one of the rent 
     options referred to in subparagraph (A).
       ``(B) Allowable rent structures.--
       ``(i) Flat rents.--Except as otherwise provided under this 
     clause, each public housing agency shall establish, for each 
     dwelling unit in public housing owned or operated by the 
     agency, a flat rental amount for the dwelling unit, which 
     shall--
       ``(I) be based on the rental value of the unit, as 
     determined by the public housing agency; and
       ``(II) be designed in accordance with subparagraph (D) 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 clause 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 clause in any other 
     manner that may comply with this clause.
       ``(ii) Income-based rents.--
       ``(I) In general.--The monthly rental amount determined 
     under this clause for a family shall be an amount, determined 
     by the public housing agency, that does not exceed the 
     greatest of the amounts (rounded to the nearest dollar) 
     determined under subparagraphs (A), (B), and (C) of paragraph 
     (1). This clause may not be construed to require a public 
     housing agency to charge a monthly rent in the maximum amount 
     permitted under this clause.
       ``(II) Discretion.--Subject to the limitation on monthly 
     rental amount under subclause (I), a public housing agency 
     may, in its discretion, implement a rent structure under this 
     clause requiring that a portion of the rent be deposited to 
     an escrow or savings account, imposing ceiling rents, or 
     adopting income exclusions (such as those set forth in 
     section 3(b)(5)(B)), or may establish another reasonable rent 
     structure or amount.
       ``(C) Switching rent determination methods because of 
     hardship circumstances.--Notwithstanding subparagraph (A), in 
     the case of a family that has elected to pay rent in the 
     amount determined under subparagraph (B)(i), a public housing 
     agency shall immediately provide for the family to pay rent 
     in the amount determined under subparagraph (B)(ii) during 
     the period for which such election was made upon a 
     determination that the family is unable to pay the amount 
     determined under subparagraph (B)(i) because of financial 
     hardship, including--
       ``(i) 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;
       ``(ii) an increase, because of changed circumstances, in 
     the family's expenses for medical costs, child care, 
     transportation, education, or similar items; and
       ``(iii) such other situations as may be determined by the 
     agency.
       ``(D) Encouragement of self-sufficiency.--The rental policy 
     developed by each public housing agency shall encourage and 
     reward employment and economic self-sufficiency.
       ``(E) Income reviews.--Notwithstanding the second sentence 
     of paragraph (1), in the case of families that are paying 
     rent in the amount determined under subparagraph (B)(i), the 
     agency shall review the income of such family not less than 
     once every 3 years.''.

     SEC. 524. OCCUPANCY BY POLICE OFFICERS AND OVER-INCOME 
                   FAMILIES.

       (a) In General.--Section 3(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(a), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new paragraphs:
       ``(4) Occupancy by police officers.--
       ``(A) In general.--Subject to subparagraph (B) and 
     notwithstanding any other provision of law, a public housing 
     agency may, in accordance with the public housing agency plan 
     for the agency, allow a police officer who is not otherwise 
     eligible for residence in public housing to reside in a 
     public housing dwelling unit. The number and location of 
     units occupied by police officers under this paragraph and 
     the terms and conditions of their tenancies shall be 
     determined by the public housing agency.
       ``(B) Increased security.--A public housing agency may take 
     the actions authorized in subparagraph (A) only for the 
     purpose of increasing security for the residents of a public 
     housing project.
       ``(C) Definition.--In this paragraph, the term `police 
     officer' means any person determined by a public housing 
     agency to be, during the period of residence of that person 
     in public housing, employed on a full-time basis as a duly 
     licensed professional police officer by a Federal, State, or

[[Page H9388]]

     local government or by any agency thereof (including a public 
     housing agency having an accredited police force).
       ``(5) Occupancy by over-income families in certain public 
     housing.--
       ``(A) Authority.--Notwithstanding any other provision of 
     law, a public housing agency that owns or operates less than 
     250 units may, on a month-to-month basis, lease a dwelling 
     unit in a public housing project to an over-income family in 
     accordance with this paragraph, but only if there are no 
     eligible families applying for housing assistance from the 
     public housing agency for that month and the agency provides 
     not less than 30-day public notice of the availability of 
     such assistance.
       ``(B) Terms and conditions.--The number and location of 
     dwelling units of a public housing agency occupied under this 
     paragraph by over-income families, and the terms and 
     conditions of those tenancies, shall be determined by the 
     public housing agency, except that--
       ``(i) notwithstanding paragraph (2), rent for a unit shall 
     be in an amount that is not less than the costs to operate 
     the unit;
       ``(ii) if an eligible family applies for residence after an 
     over-income family moves in to the last available unit, the 
     over-income family shall vacate the unit in accordance with 
     notice of termination of tenancy provided by the agency, 
     which shall be provided not less than 30 days before such 
     termination; and
       ``(iii) if a unit is vacant and there is no one on the 
     waiting list, the public housing agency may allow an over-
     income family to gain immediate occupancy in the unit, while 
     simultaneously providing reasonable public notice and 
     outreach with regard to availability of the unit.
       ``(C) Definition.--For purposes of this paragraph, the term 
     `over-income family' means an individual or family that is 
     not a low-income family at the time of initial occupancy.''.
       (b) Applicability.--The amendment made by this paragraph is 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 525. SITE-BASED WAITING LISTS.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended by adding at the end the following 
     new subsection:
       ``(s) Site-Based Waiting Lists.--
       ``(1) Authority.--A public housing agency may establish 
     procedures for maintaining waiting lists for admissions to 
     public housing projects of the agency, which may include 
     (notwithstanding any other law, regulation, handbook, or 
     notice to the contrary) a system of site-based waiting lists 
     under which applicants may apply directly at or otherwise 
     designate the project or projects 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.
       ``(2) Notice.--Any system described in paragraph (1) shall 
     provide for the full disclosure by the public housing agency 
     to each applicant of any option available to the applicant in 
     the selection of the project in which to reside.''.

     SEC. 526. PET OWNERSHIP.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.), as amended by the preceding provisions of this 
     Act, is further amended by adding at the end the following 
     new section:

     ``SEC. 31. PET OWNERSHIP IN PUBLIC HOUSING.

       ``(a) Ownership Conditions.--A resident of a dwelling unit 
     in public housing (as such term is defined in subsection (c)) 
     may own 1 or more common household pets or have 1 or more 
     common household pets present in the dwelling unit of such 
     resident, subject to the reasonable requirements of the 
     public housing agency, if the resident maintains each pet 
     responsibly and in accordance with applicable State and local 
     public health, animal control, and animal anti-cruelty laws 
     and regulations and with the policies established in the 
     public housing agency plan for the agency.
       ``(b) Reasonable Requirements.--The reasonable requirements 
     referred to in subsection (a) may include--
       ``(1) requiring payment of a nominal fee, a pet deposit, or 
     both, by residents owning or having pets present, to cover 
     the reasonable operating costs to the project relating to the 
     presence of pets and to establish an escrow account for 
     additional costs not otherwise covered, respectively;
       ``(2) limitations on the number of animals in a unit, based 
     on unit size;
       ``(3) prohibitions on--
       ``(A) types of animals that are classified as dangerous; 
     and
       ``(B) individual animals, based on certain factors, 
     including the size and weight of the animal; and
       ``(4) restrictions or prohibitions based on size and type 
     of building or project, or other relevant conditions.
       ``(c) Pet Ownership In Public Housing Designated For 
     Occupancy By Elderly or Handicapped Families.--For purposes 
     of this section, the term `public housing' has the meaning 
     given the term in section 3(b), except that such term does 
     not include any public housing that is federally assisted 
     rental housing for the elderly or handicapped, as such term 
     is defined in section 227(d) of the Housing and Urban-Rural 
     Recovery Act of 1983 (12 U.S.C. 1701r-1(d)).
       ``(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 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).''.

   PART 3--MANAGEMENT, HOMEOWNERSHIP, AND DEMOLITION AND DISPOSITION

     SEC. 529. CONTRACT PROVISIONS.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended--
       (1) in subsection (c)(4)(E), by striking ``except in the 
     case of agencies not receiving operating assistance under 
     section 9'' and inserting ``for each agency that receives 
     assistance under this title''; and
       (2) by striking subsection (e).

     SEC. 530. HOUSING QUALITY REQUIREMENTS.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended by inserting after subsection (e) 
     the following new subsection:
       ``(f) Housing Quality Requirements.--
       ``(1) In general.--Each contract for contributions for a 
     public housing agency shall require that the agency maintain 
     its public housing in a condition that complies with 
     standards which meet or exceed the housing quality standards 
     established under paragraph (2).
       ``(2) Federal standards.--The Secretary shall establish 
     housing quality standards under this paragraph that ensure 
     that public housing dwelling units are safe and habitable. 
     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 8(o)(8)(B)(i). The 
     Secretary may determine whether the laws, regulations, 
     standards, or codes of any State or local jurisdiction meet 
     or exceed these standards, for purposes of this subsection.
       ``(3) Annual inspections.--Each public housing agency that 
     owns or operates public housing shall make an annual 
     inspection of each public housing project to determine 
     whether units in the project are maintained in accordance 
     with the requirements under paragraph (1). 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 5(h), shall make such results 
     available.''.

     SEC. 531. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

       (a) In General.--Section 18 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437p) is amended to read as follows:

     ``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

       ``(a) Applications for Demolition and Disposition.--Except 
     as provided in subsection (b), upon receiving an application 
     by a public housing agency for authorization, with or without 
     financial assistance under this title, to demolish or dispose 
     of a public housing project or a portion of a public housing 
     project (including any transfer to a resident-supported 
     nonprofit entity), the Secretary shall approve the 
     application, if the public housing agency certifies--
       ``(1) in the case of--
       ``(A) an application proposing demolition of a public 
     housing project or a portion of a public housing project, 
     that--
       ``(i) the project or portion of the public housing project 
     is obsolete as to physical condition, location, or other 
     factors, making it unsuitable for housing purposes; and
       ``(ii) no reasonable program of modifications is cost-
     effective to return the public housing project or portion of 
     the project to useful life; and
       ``(B) an application proposing the demolition of only a 
     portion of a public housing project, that the demolition will 
     help to ensure the viability of the remaining portion of the 
     project;
       ``(2) in the case of an application proposing disposition 
     by sale or other transfer of a public housing project or 
     other real property subject to this title--
       ``(A) the retention of the property is not in the best 
     interests of the residents or the public housing agency 
     because--
       ``(i) conditions in the area surrounding the public housing 
     project adversely affect the health or safety of the 
     residents or the feasible operation of the project by the 
     public housing agency; or
       ``(ii) disposition allows the acquisition, development, or 
     rehabilitation of other properties that will be more 
     efficiently or effectively operated as low-income housing;
       ``(B) the public housing agency has otherwise determined 
     the disposition to be appropriate for reasons that are--
       ``(i) in the best interests of the residents and the public 
     housing agency;
       ``(ii) consistent with the goals of the public housing 
     agency and the public housing agency plan; and
       ``(iii) otherwise consistent with this title; or
       ``(C) for property other than dwelling units, the property 
     is excess to the needs of a public housing project or the 
     disposition is incidental to, or does not interfere with, 
     continued operation of a public housing project;
       ``(3) that the public housing agency has specifically 
     authorized the demolition or disposition in the public 
     housing agency plan, and has certified that the actions 
     contemplated in the public housing agency plan comply with 
     this section;
       ``(4) that the public housing agency--
       ``(A) will notify each family residing in a project subject 
     to demolition or disposition 90 days prior to the 
     displacement date, except in cases of imminent threat to 
     health or safety, consistent with any guidelines issued by 
     the Secretary governing such notifications, that--
       ``(i) the public housing project will be demolished or 
     disposed of;
       ``(ii) the demolition of the building in which the family 
     resides will not commence until each resident of the building 
     is relocated; and

[[Page H9389]]

       ``(iii) each family displaced by such action will be 
     offered comparable housing--

       ``(I) that meets housing quality standards;
       ``(II) that is located in an area that is generally not 
     less desirable than the location of the displaced person's 
     housing; and
       ``(III) which may include--

       ``(aa) tenant-based assistance, except that the requirement 
     under this clause regarding offering of comparable housing 
     shall be fulfilled by use of tenant-based assistance only 
     upon the relocation of such family into such housing;
       ``(bb) project-based assistance; or
       ``(cc) occupancy in a unit operated or assisted by the 
     public housing agency at a rental rate paid by the family 
     that is comparable to the rental rate applicable to the unit 
     from which the family is vacated;
       ``(B) will provide for the payment of the actual and 
     reasonable relocation expenses of each resident to be 
     displaced;
       ``(C) will ensure that each displaced resident is offered 
     comparable housing in accordance with the notice under 
     subparagraph (A); and
       ``(D) will provide any necessary counseling for residents 
     who are displaced; and
       ``(E) will not commence demolition or complete disposition 
     until all residents residing in the building are relocated;
       ``(5) that the net proceeds of any disposition will be 
     used--
       ``(A) unless waived by the Secretary, for the retirement of 
     outstanding obligations issued to finance the original public 
     housing project or modernization of the project; and
       ``(B) to the extent that any proceeds remain after the 
     application of proceeds in accordance with subparagraph (A), 
     for--
       ``(i) the provision of low-income housing or to benefit the 
     residents of the public housing agency; or
       ``(ii) leveraging amounts for securing commercial 
     enterprises, on-site in public housing projects of the public 
     housing agency, appropriate to serve the needs of the 
     residents; and
       ``(6) that the public housing agency has complied with 
     subsection (c).
       ``(b) Disapproval of Applications.--The Secretary shall 
     disapprove an application submitted under subsection (a) if 
     the Secretary determines that--
       ``(1) any certification made by the public housing agency 
     under that subsection is clearly inconsistent with 
     information and data available to the Secretary or 
     information or data requested by the Secretary; or
       ``(2) the application was not developed in consultation 
     with--
       ``(A) residents who will be affected by the proposed 
     demolition or disposition;
       ``(B) each resident advisory board and resident council, if 
     any, of the project (or portion thereof) that will be 
     affected by the proposed demolition or disposition; and
       ``(C) appropriate government officials.
       ``(c) Resident Opportunity To Purchase in Case of Proposed 
     Disposition.--
       ``(1) In general.--In the case of a proposed disposition of 
     a public housing project or portion of a project, the public 
     housing agency shall, in appropriate circumstances, as 
     determined by the Secretary, initially offer the property to 
     any eligible resident organization, eligible resident 
     management corporation, or nonprofit organization acting on 
     behalf of the residents, if that entity has expressed an 
     interest, in writing, to the public housing agency in a 
     timely manner, in purchasing the property for continued use 
     as low-income housing.
       ``(2) Timing.--
       ``(A) Expression of interest.--A resident organization, 
     resident management corporation, or other resident-supported 
     nonprofit entity referred to in paragraph (1) may express 
     interest in purchasing property that is the subject of a 
     disposition, as described in paragraph (1), during the 30-day 
     period beginning on the date of notification of a proposed 
     sale of the property.
       ``(B) Opportunity to arrange purchase.--If an entity 
     expresses written interest in purchasing a property, as 
     provided in subparagraph (A), no disposition of the property 
     shall occur during the 60-day period beginning on the date of 
     receipt of that written notice (other than to the entity 
     providing the notice), during which time that entity shall be 
     given the opportunity to obtain a firm commitment for 
     financing the purchase of the property.
       ``(d) Replacement Units.--Notwithstanding any other 
     provision of law, replacement public housing units for public 
     housing units demolished in accordance with this section may 
     be built on the original public housing location or in the 
     same neighborhood as the original public housing location if 
     the number of the replacement public housing units is 
     significantly fewer than the number of units demolished.
       ``(e) 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 project, or 
     among projects, or with other housing for the purpose of 
     improving living conditions of, or providing more efficient 
     services to, residents.
       ``(f) 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 by the public housing agency, 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.
       ``(g) Uniform Relocation and Real Property Acquisition 
     Act.--The Uniform Relocation and Real Property Acquisition 
     Policies Act of 1970 shall not apply to activities under this 
     section.
       ``(h) Relocation and Replacement.--Of the amounts 
     appropriated for tenant-based assistance under section 8 in 
     any fiscal year, the Secretary may use such sums as are 
     necessary for relocation and replacement housing for dwelling 
     units that are demolished and disposed of from the public 
     housing inventory (in addition to other amounts that may be 
     available for such purposes).''.
       (b) Homeownership Replacement Plan.--
       (1) In general.--Notwithstanding subsections (b) and (c) of 
     section 1002 of the Emergency Supplemental Appropriations for 
     Additional Disaster Assistance, for Anti-terrorism 
     Initiatives, for Assistance in the Recovery from the Tragedy 
     that Occurred At Oklahoma City, and Rescissions Act, 1995 
     (Public Law 104-19; 109 Stat. 236), subsection (g) of section 
     304 of the United States Housing Act of 1937 (42 U.S.C. 
     1437aaa-3(g)) is repealed.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective with respect to any plan for the 
     demolition, disposition, or conversion to homeownership of 
     public housing that is approved by the Secretary after 
     September 30, 1995.
       (c) Treatment of Frost-Leland Provisions.--Notwithstanding 
     any other provision of law, on and after the date of 
     enactment of this Act, the public housing projects described 
     in section 415 of the Department of Housing and Urban 
     Development--Independent Agencies Appropriations Act, 1988 
     (Public Law 100-202; 101 Stat. 1329-213), as in effect on 
     April 25, 1996, shall be eligible for demolition under--
       (1) section 9 of the United States Housing Act of 1937, as 
     amended by this Act; and
       (2) section 14 of the United States Housing Act of 1937, as 
     that section existed on the day before the date of enactment 
     of this Act.
       (c) Applicability.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT 
                   CORPORATIONS.

       (a) Resident Management.--Section 20 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437r) is amended--
       (1) in subsection (b)(4), by inserting after ``materials'' 
     the following: ``, rent determination, community service 
     requirements,'';
       (2) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Assistance Amounts.--A contract under this section 
     for management of a public housing project by a resident 
     management corporation shall provide for--
       ``(1) the public housing agency to provide a portion of the 
     assistance to agency from the Capital and Operating Funds to 
     the resident management corporation in accordance with 
     subsection (e) for purposes of operating the public housing 
     project covered by the contract and performing such other 
     eligible activities with respect to the project as may be 
     provided under the contract;
       ``(2) the amount of income expected to be derived from the 
     project itself (from sources such as rents and charges);
       ``(3) the amount of income to be provided to the project 
     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 project that exceeds the 
     income estimated under the contract shall be used for 
     eligible activities under subsections (d)(1) and (e)(1) of 
     section 9.'';
       (3) in subsection (d), by striking paragraph (3) and 
     redesignating paragraph (4) as paragraph (3);
       (4) in subsection (e)--
       (A) by redesignating paragraph (4) as paragraph (6);
       (B) by striking the subsection designation and heading and 
     all that follows through the end of paragraph (3) and 
     inserting the following:
       ``(e) Direct Provision of Operating and Capital 
     Assistance.--
       ``(1) In general.--The Secretary shall directly provide 
     assistance from the Operating and Capital Funds to a resident 
     management corporation managing a public housing development 
     pursuant to a contract under this section, but only if--
       ``(A) the resident management corporation petitions the 
     Secretary for the release of the funds;
       ``(B) the contract provides for the resident management 
     corporation to assume the primary management responsibilities 
     of the public housing agency; and
       ``(C) the Secretary determines that the corporation has the 
     capability to effectively discharge such responsibilities.
       ``(2) Use of assistance.--Any assistance from the Operating 
     and Capital Funds provided to a resident management 
     corporation pursuant to this subsection shall be used for 
     purposes of operating the public housing developments of the 
     agency and performing such other eligible activities with 
     respect to public housing as may be provided under the 
     contract.
       ``(3) Responsibility of public housing agency.--If the 
     Secretary provides direct funding to a resident management 
     corporation under this subsection, the public housing agency 
     shall not be responsible for the actions of the resident 
     management corporation.
       ``(4) Calculation of operating fund allocation.--
     Notwithstanding any provision of section 9 or any regulation 
     under such section, and subject to the exception provided in 
     paragraph (3), the portion of the amount received by a public 
     housing agency under section 9 that is due to an allocation 
     from the Operating Fund and that is allocated to a public 
     housing project managed by a resident management corporation 
     shall not be less than the public housing agency per unit 
     monthly amount provided in the previous year as determined on 
     an individual project basis.

[[Page H9390]]

       ``(5) Calculation of total income.--
       ``(A) Subject to subparagraph (B), the amount of funds 
     provided by a public housing agency to a public housing 
     project managed by a resident management corporation may not 
     be reduced during the 3-year period beginning on the date of 
     enactment of the Housing and Community Development Act of 
     1987 or on any later date on which a resident management 
     corporation is first established for the project.
       ``(B) If the total income of a public housing agency 
     (including any amounts from the Capital or Operating Funds 
     provided to the public housing agency under section 9) is 
     reduced or increased, the income provided by the public 
     housing agency to a public housing project managed by a 
     resident management corporation shall be reduced or increased 
     in proportion to the reduction or increase in the total 
     income of the public housing agency, except that any 
     reduction in amounts from the Operating Fund that occurs as a 
     result of fraud, waste, or mismanagement by the public 
     housing agency shall not affect the funds provided to the 
     resident management corporation.''; and
       (C) in paragraph (6)(A) (as so redesignated by subparagraph 
     (A) of this paragraph), by striking ``the operating subsidies 
     provided to'' and inserting ``the allocations from the 
     Operating Fund for''; and
       (5) by striking subsections (f) and (g).
       (b) Purchase By Resident Management Corporations.--Section 
     21 of the United States Housing Act of 1937 (42 U.S.C. 1437s) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(A), by striking ``comprehensive 
     improvement assistance under section 14'' and inserting 
     ``assistance from the Capital Fund'';
       (B) in paragraph (3)(A)(v), by striking ``minimum safety 
     and livability standards applicable under section 14'' and 
     inserting ``housing quality standards applicable under 
     section 6(f)'';
       (C) in paragraph (7)--
       (i) by striking ``Annual contributions'' and inserting 
     ``Capital and operating assistance'';
       (ii) in the first sentence, by striking ``pay annual 
     contributions'' and inserting ``provide assistance under 
     section 9''; and
       (iii) by striking the last sentence and inserting the 
     following: ``Such assistance may not exceed the allocation 
     for the project under section 9.''; and
       (D) in paragraph (8), by striking ``Operating subsidies.--
     Operating subsidies'' and inserting ``Operating fund 
     allocation.--Amounts from the Operating Fund'';
       (2) in subsection (b)(3)--
       (A) by striking ``a certificate under section 8(b)(1) or a 
     housing voucher'' and inserting ``tenant-based assistance''; 
     and
       (B) by striking ``fair market rent for such certificate'' 
     and inserting ``payment standard for such assistance''; and
       (3) in subsection (d), by inserting ``, as in effect before 
     the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998,'' after 
     ``section 6(c)(4)(D)''.

     SEC. 533. CONVERSION OF PUBLIC HOUSING TO VOUCHERS; REPEAL OF 
                   FAMILY INVESTMENT CENTERS.

       (a) In General.--Section 22 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437t) is amended to read as follows:

     ``SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.

       ``(a) Authority.--A public housing agency may convert any 
     public housing project (or portion thereof) owned by the 
     public housing agency to tenant-based assistance, but only in 
     accordance with the requirements of this section.
       ``(b) Conversion Assessment.--
       ``(1) In general.--To convert public housing under this 
     section, a public housing agency shall conduct an assessment 
     of the public housing that includes--
       ``(A) 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 tenant-based 
     assistance under section 8 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 project for the remaining useful life 
     of the project;
       ``(B) an analysis of the market value of the public housing 
     project both before and after rehabilitation, and before and 
     after conversion;
       ``(C) an analysis of the rental market conditions with 
     respect to the likely success of the use of tenant-based 
     assistance under section 8 in that market for the specific 
     residents of the public housing project, including an 
     assessment of the availability of decent and safe dwellings 
     renting at or below the payment standard established for 
     tenant-based assistance under section 8 by the agency;
       ``(D) the impact of the conversion to tenant-based 
     assistance under this section on the neighborhood in which 
     the public housing project is located; and
       ``(E) a plan that identifies actions, if any, that the 
     public housing agency would take with regard to converting 
     any public housing project or projects (or portions thereof) 
     of the public housing agency to tenant-based assistance.
       ``(2) Timing.--Not later than 2 years after the effective 
     date under section 503(a) of the Quality Housing and Work 
     Responsibility Act of 1998, each public housing agency shall 
     conduct an assessment under paragraph (1) or (3) of the 
     status of each public housing project owned by such agency 
     and shall submit to the Secretary such assessment. A public 
     housing agency may otherwise undertake an assessment under 
     this subsection at any time and for any public housing 
     project (or portion thereof) owned by the agency. A public 
     housing agency may update a previously conducted assessment 
     for a project (or portion thereof) for purposes of compliance 
     with the one-year limitation under subsection (c).
       ``(3) Streamlined Assessment.--At the discretion of the 
     Secretary or at the request of a public housing agency, the 
     Secretary may waive any or all of the requirements of 
     paragraph (1) or (3) or otherwise require a streamlined 
     assessment with respect to any public housing project or 
     class of public housing projects.
       ``(c) Criteria for Implementation of Conversion Plan.--A 
     public housing agency may convert a public housing project 
     (or portion thereof) owned by the agency to tenant-based 
     assistance only pursuant to a conversion assessment under 
     subsection (b) that one year and that demonstrates that the 
     conversion--
       ``(1) will not be more expensive than continuing to operate 
     the public housing project (or portion thereof) as public 
     housing;
       ``(2) will principally benefit the residents of the public 
     housing project (or portion thereof) to be converted, the 
     public housing agency, and the community; and
       ``(3) will not adversely affect the availability of 
     affordable housing in such community.
       ``(d) Conversion Plan Requirement.--A public housing 
     project may be converted under this section to tenant-based 
     assistance only as provided in a conversion plan under this 
     subsection, which has not been disapproved by the Secretary 
     pursuant to subsection (e). Each conversion plan shall--
       ``(1) be developed by the public housing agency, in 
     consultation with the appropriate public officials, with 
     significant participation by the residents of the project (or 
     portion thereof) to be converted;
       ``(2) be consistent with and part of the public housing 
     agency plan;
       ``(3) describe the conversion and future use or disposition 
     of the project (or portion thereof) and include an impact 
     analysis on the affected community;
       ``(4) provide that the public housing agency shall--
       ``(A) notify each family residing in a public housing 
     project (or portion) to be converted under the plan 90 days 
     prior to the displacement date except in cases of imminent 
     threat to health or safety, consistent with any guidelines 
     issued by the Secretary governing such notifications, that--
       ``(i) the public housing project (or portion) will be 
     removed from the inventory of the public housing agency; and
       ``(ii) each family displaced by such action will be offered 
     comparable housing--

       ``(I) that meets housing quality standards;
       ``(II) that is located in an area that is generally not 
     less desirable than the location of the displaced person's 
     housing; and
       ``(III) which may include--

       ``(aa) tenant-based assistance, except that the requirement 
     under this clause regarding offering of comparable housing 
     shall be fulfilled by use of tenant-based assistance only 
     upon the relocation of such family into such housing;
       ``(bb) project-based assistance; or
       ``(cc) occupancy in a unit operated or assisted by the 
     public housing agency at a rental rate paid by the family 
     that is comparable to the rental rate applicable to the unit 
     from which the family is vacated;
       ``(B) provide any necessary counseling for families 
     displaced by such action;
       ``(C) ensure that, if the project (or portion) converted is 
     used as housing after such conversion, each resident may 
     choose to remain in their dwelling unit in the project and 
     use the tenant-based assistance toward rent for that unit; 
     and
       ``(D) provide any actual and reasonable relocation expenses 
     for families displaced by the conversion; and
       ``(5) provide that any proceeds to the agency from the 
     conversion will be used subject to the limitations that are 
     applicable under section 18(a)(5) to proceeds resulting from 
     the disposition or demolition of public housing.
       ``(e) Review and Approval of Conversion Plans.--The 
     Secretary shall disapprove a conversion plan only if--
       ``(1) the plan is plainly inconsistent with the conversion 
     assessment for the agency developed under subsection (b);
       ``(2) there is reliable information and data available to 
     the Secretary that contradicts that conversion assessment; or
       ``(3) the plan otherwise fails to meet the requirements of 
     this section.
       ``(f) Tenant-Based Assistance.--To the extent approved by 
     the Secretary, the funds used by the public housing agency to 
     provide tenant-based assistance under section 8 shall be 
     added to the annual contribution contract administered by the 
     public housing agency.''.
       (b) Savings Provision.--The amendment made by subsection 
     (a) shall not affect any contract or other agreement entered 
     into under section 22 of the United States Housing Act of 
     1937, as such section existed immediately before the 
     effective date under section 503(a) of the Quality Housing 
     and Work Responsibility Act of 1998.

     SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO 
                   INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.

       The United States Housing Act of 1937 is amended by 
     striking section 25 (42 U.S.C. 1437w) and inserting the 
     following new section:

     ``SEC. 25. 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--

[[Page H9391]]

       ``(1) a request for transfer of management of such housing 
     is made and approved in accordance with subsection (b); and
       ``(2) the Secretary or the public housing agency, as 
     appropriate pursuant to subsection (b), determines that--
       ``(A) due to the mismanagement of the agency, 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 located in an area such that the 
     housing is subject to recurrent vandalism and criminal 
     activity (including drug-related criminal activity); and
       ``(C) the residents can demonstrate that the elements of 
     distress for such housing specified in subparagraphs (A) and 
     (B) can be remedied by an entity or entities, identified by 
     the residents, that has or have a demonstrated capacity to 
     manage, with reasonable expenses for modernization.
       ``(b) Request for Transfer.--The responsibility and 
     authority for managing specified housing may be transferred 
     only pursuant to a request made by a majority vote of the 
     residents for the specified housing that--
       ``(1) in the case of specified housing that is owned by a 
     public housing agency that is designated as a troubled agency 
     under section 6(j)(2)--
       ``(A) is made to the public housing agency or the 
     Secretary; and
       ``(B) is approved by the agency or the Secretary; or
       ``(2) in the case of specified housing that is owned by a 
     public housing agency that is not designated as a troubled 
     agency under section 6(j)(2)--
       ``(A) is made to and approved by the public housing agency; 
     or
       ``(B) if a request is made to the agency pursuant to 
     subparagraph (A) and is not approved, is subsequently made to 
     and approved by the Secretary.
       ``(c) Capital and Operating Assistance.--Pursuant to a 
     contract under subsection (d), the Secretary shall require 
     the public housing agency for specified housing to provide to 
     the manager for the housing, from any assistance from the 
     Capital and Operating Funds under section 9 for the agency, 
     fair and reasonable amounts for the housing for eligible 
     capital and operating activities under subsection (d)(1) and 
     (e)(1) of section 9. 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 aggregate 
     amount of assistance from such Funds 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 public housing agency plan of such agency.
       ``(d) Contract Between Secretary and Manager.--
       ``(1) Requirements.--Pursuant to the approval of a request 
     under this section for transfer of the management of 
     specified housing, the Secretary shall enter into a contract 
     with the eligible management entity.
       ``(2) Terms.--A contract under this subsection shall 
     contain provisions establishing the rights and 
     responsibilities of the manager with respect to the specified 
     housing and the Secretary and shall be consistent with the 
     requirements of this Act applicable to public housing 
     projects.
       ``(e) Compliance With Public Housing Agency Plan.--A 
     manager of specified housing under this section shall comply 
     with the approved public housing agency 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 public 
     housing agency plan.
       ``(f) 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 
     public housing agency plan for the agency transferring 
     management of the housing.
       ``(g) 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.
       ``(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 
     project, any of the following entities:
       ``(A) Nonprofit organization.--A public or private 
     nonprofit organization, which may--
       ``(i) include a resident management corporation; and
       ``(ii) not include the public housing agency that owns or 
     operates the project.
       ``(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 or operates 
     the project).
     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 nonprofit organization.--The term `public 
     nonprofit organization' means any public entity that is 
     nonprofit in character.
       ``(6) Specified housing.--The term `specified housing' 
     means a public housing project or projects, or a portion of a 
     project or projects, 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 project of 
     which it is part to make transfer of the management of the 
     building feasible for purposes of this section.''.

     SEC. 535. DEMOLITION, SITE REVITALIZATION, REPLACEMENT 
                   HOUSING, AND TENANT-BASED ASSISTANCE GRANTS FOR 
                   PROJECTS.

       (a) In General.--Section 24 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437v) is amended to read as follows:

     ``SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT 
                   HOUSING, AND TENANT-BASED ASSISTANCE GRANTS FOR 
                   PROJECTS.

       ``(a) Purposes.--The purpose of this section is to provide 
     assistance to public housing agencies for the purposes of--
       ``(1) improving the living environment for public housing 
     residents of severely distressed public housing projects 
     through the demolition, rehabilitation, reconfiguration, or 
     replacement of obsolete public housing projects (or portions 
     thereof);
       ``(2) revitalizing sites (including remaining public 
     housing dwelling units) on which such public housing projects 
     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) building sustainable communities.
       ``(b) Grant Authority.--The Secretary may make grants as 
     provided in this section to applicants whose applications for 
     such grants are approved by the Secretary under this section.
       ``(c) Contribution Requirement.--
       ``(1) In general.--The Secretary may not make any grant 
     under this section to any applicant unless the applicant 
     certifies to the Secretary that the applicant will--
       ``(A) supplement the aggregate 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; and
       ``(B) in addition to supplemental amounts provided in 
     accordance with subparagraph (A), if the applicant uses more 
     than 5 percent of the amount of assistance provided under 
     this section for services under subsection (d)(1)(L), provide 
     supplemental funds from sources other than this section in an 
     amount equal to the amount so used in excess of 5 percent.
       ``(2) Supplemental funds.--In calculating the amount of 
     supplemental funds provided by a grantee for purposes of 
     paragraph (1), the grantee may include amounts from other 
     Federal sources, any State or local government sources, any 
     private contributions, the value of any donated material or 
     building, the value of any lease on a building, the value of 
     the time and services contributed by volunteers, and the 
     value of any other in-kind services or administrative costs 
     provided.
       ``(3) Exemption.--If assistance provided under this title 
     will be used only for providing tenant-based assistance under 
     section 8 or demolition of public housing (without 
     replacement), the Secretary may exempt the applicant from the 
     requirements under paragraph (1)(A).
       ``(d) Eligible Activities.--
       ``(1) In general.--Grants under this section may be used 
     for activities to carry out revitalization programs for 
     severely distressed public housing, including--
       ``(A) architectural and engineering work;
       ``(B) redesign, rehabilitation, or reconfiguration of a 
     severely distressed public housing project, including the 
     site on which the project is located;
       ``(C) the demolition, sale, or lease of the site, in whole 
     or in part;
       ``(D) 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;
       ``(E) payment of reasonable legal fees;
       ``(F) providing reasonable moving expenses for residents 
     displaced as a result of the revitalization of the project;
       ``(G) economic development activities that promote the 
     economic self-sufficiency of residents under the 
     revitalization program;
       ``(H) necessary management improvements;
       ``(I) leveraging other resources, including additional 
     housing resources, retail supportive services, jobs, and 
     other economic development uses on or near the project that 
     will benefit future residents of the site;
       ``(J) replacement housing (including appropriate 
     homeownership downpayment assistance for displaced residents 
     or other appropriate replacement homeownership activities) 
     and rental assistance under section 8;
       ``(K) transitional security activities; and
       ``(L) necessary supportive services, except that not more 
     than 15 percent of the amount of any grant may be used for 
     activities under this paragraph.

[[Page H9392]]

       ``(2) Endowment trust for supportive services.--In using 
     grant amounts under this section made available in fiscal 
     year 2000 or thereafter for supportive services under 
     paragraph (1)(L), a public housing agency may deposit such 
     amounts in an endowment trust to provide supportive services 
     over such period of time as the agency determines. Such 
     amounts shall be provided to the agency by the Secretary in a 
     lump sum when requested by the agency, shall be invested in a 
     wise and prudent manner, and shall be used (together with any 
     interest thereon earned) only for eligible uses pursuant to 
     paragraph (1)(L). A public housing agency may use amounts in 
     an endowment trust under this paragraph in conjunction with 
     other amounts donated or otherwise made available to the 
     trust for similar purposes.
       ``(e) Application and Selection.--
       ``(1) Application.--An application for a grant under this 
     section shall demonstrate the appropriateness of the proposal 
     in the context of the local housing market relative to other 
     alternatives, and shall include such other information and 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 
     and shall include such factors as--
       ``(A) the relationship of the grant to the public housing 
     agency plan for the applicant and how the grant will result 
     in a revitalized site that will enhance the neighborhood in 
     which the project is located and enhance economic 
     opportunities for residents;
       ``(B) the capability and record of the applicant public 
     housing agency, or any alternative management entity 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 applicant 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 project;
       ``(E) the need for affordable housing in the community;
       ``(F) the supply of other housing available and affordable 
     to families receiving tenant-based assistance under section 
     8;
       ``(G) the amount of funds and other resources to be 
     leveraged by the grant;
       ``(H) the extent of the need for, and the potential impact 
     of, the revitalization program; and
       ``(I) such other factors as the Secretary considers 
     appropriate.
       ``(3) Applicability of selection criteria.--The Secretary 
     may determine not to apply certain of the selection criteria 
     established pursuant to paragraph (2) when awarding grants 
     for demolition only, tenant-based assistance only, or other 
     specific categories of revitalization activities. This 
     section may not be construed to require any application for a 
     grant under this section to include demolition of public 
     housing or to preclude use of grant amounts for 
     rehabilitation or rebuilding of any housing on an existing 
     site.
       ``(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) Disposition and Replacement.--Any severely distressed 
     public housing disposed of pursuant to a revitalization plan 
     and any public housing developed in lieu of such severely 
     distressed housing, shall be subject to the provisions of 
     section 18. Severely distressed public housing demolished 
     pursuant to a revitalization plan shall not be subject to the 
     provisions of section 18.
       ``(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 within a reasonable timeframe, 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 other 
     applicants 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 6(j)(2);
       ``(B) any public housing agency for which a private housing 
     management agent has been selected, or a receiver has been 
     appointed, pursuant to section 6(j)(3); and
       (C) any public housing agency that is designated as 
     troubled pursuant to section 6(j)(2) and 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) Severely distressed public housing.--The term 
     `severely distressed public housing' means a public housing 
     project (or building in a project)--
       ``(A) that--
       ``(i) 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 
     project;
       ``(ii) is a significant contributing factor to the physical 
     decline of and disinvestment by public and private entities 
     in the surrounding neighborhood;
       ``(iii)(I) is occupied predominantly by families who are 
     very low-income families with children, are unemployed, and 
     dependent on various forms of public assistance; or
       ``(II) has high rates of vandalism and criminal activity 
     (including drug-related criminal activity) in comparison to 
     other housing in the area;
       ``(iv) cannot be revitalized through assistance under other 
     programs, such as the program for capital and operating 
     assistance for public housing under this Act, or the programs 
     under sections 9 and 14 of the United States Housing Act of 
     1937 (as in effect before the effective date under under 
     section 503(a) the Quality Housing and Work Responsibility 
     Act of 1998), because of cost constraints and inadequacy of 
     available amounts; and
       ``(v) in the case of individual buildings, is, in the 
     Secretary's determination, sufficiently separable from the 
     remainder of the project of which the building is part to 
     make use of the building feasible for purposes of this 
     section; or
       ``(B) that was a project described in subparagraph (A) that 
     has been legally vacated or demolished, but for which the 
     Secretary has not yet provided replacement housing assistance 
     (other than tenant-based assistance).
       ``(3) 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 project involved, including 
     literacy training, job training, day care, transportation, 
     and economic development activities.
       ``(k) Grantee Reporting.--The Secretary shall require 
     grantees of assistance under this section to report the 
     sources and uses of all amounts expended for revitalization 
     plans.
       ``(l) Annual Report.--The Secretary shall submit to the 
     Congress an annual report setting forth--
       ``(1) the number, type, and cost of public housing units 
     revitalized pursuant to this section;
       ``(2) the status of projects identified as severely 
     distressed public housing;
       ``(3) the amount and type of financial assistance provided 
     under and in conjunction with this section; and
       ``(4) the recommendations of the Secretary for statutory 
     and regulatory improvements to the program established by 
     this section.
       ``(m) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated for grants under this section 
     $600,000,000 for fiscal year 1999 and such sums as may be 
     necessary for each of fiscal years 2000, 2001, and 2002.
       ``(2) Technical assistance and program oversight.--Of the 
     amount appropriated pursuant to paragraph (1) for any fiscal 
     year, the Secretary may use up to 2 percent for technical 
     assistance or contract expertise. Such assistance or contract 
     expertise 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.
       ``(n) Sunset.--No assistance may be provided under this 
     section after September 30, 2002.''.
       (b) Applicability.--The amendment made by this section is 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 536. HOMEOWNERSHIP.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.), as amended by the preceding provisions of this 
     Act, is further amended by adding at the end the following 
     new section:

     ``SEC. 32. RESIDENT HOMEOWNERSHIP PROGRAMS.

       ``(a) In General.--A public housing agency may carry out a 
     homeownership program in accordance with this section and the 
     public housing agency plan of the agency to make public 
     housing dwelling units, public housing projects, and other 
     housing projects available for purchase by low-income 
     families for use only as principal residences for such 
     families. An agency may transfer a unit pursuant to a 
     homeownership program only if the program is authorized under 
     this section and approved by the Secretary.
       ``(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, assisted, or operated, 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

[[Page H9393]]

     employment or participation in employment counseling or 
     training activities, criminal activity, participation in 
     homeownership counseling programs, evidence of regular 
     income, and other requirements. In the case of purchase by an 
     entity for resale to low-income families, the entity shall 
     sell the units to low-income families within 5 years from the 
     date of its acquisition of the units. The entity shall use 
     any net proceeds from the resale and from managing the units, 
     as determined in accordance with guidelines of the Secretary, 
     for housing purposes, such as funding resident organizations 
     and reserves for capital replacements.
       ``(d) Right of First Refusal.--In making any sale under 
     this section, the public housing agency shall initially offer 
     the public housing unit at issue to the resident or residents 
     occupying that unit, if any, or to an organization serving as 
     a conduit for sales to any such resident.
       ``(e) Protection of Nonpurchasing Residents.--If a public 
     housing resident does not exercise the right of first refusal 
     under subsection (d) with respect to the public housing unit 
     in which the resident resides, the public housing agency--
       ``(1) shall notify the resident residing in the unit 90 
     days prior to the displacement date except in cases of 
     imminent threat to health or safety, consistent with any 
     guidelines issued by the Secretary governing such 
     notifications, that--
       ``(A) the public housing unit will be sold;
       ``(B) the transfer of possession of the unit will occur 
     until the resident is relocated; and
       ``(C) each resident displaced by such action will be 
     offered comparable housing--
       ``(i) that meets housing quality standards;
       ``(ii) that is located in an area that is generally not 
     less desirable than the location of the displaced resident's 
     housing; and
       ``(iii) which may include--

       ``(I) tenant-based assistance, except that the requirement 
     under this subclause regarding offering of comparable housing 
     shall be fulfilled by use of tenant-based assistance only 
     upon the relocation of such resident into such housing;
       ``(II) project-based assistance; or
       ``(III) occupancy in a unit owned, operated, or assisted by 
     the public housing agency at a rental rate paid by the 
     resident that is comparable to the rental rate applicable to 
     the unit from which the resident is vacated;

       ``(2) shall provide for the payment of the actual and 
     reasonable relocation expenses of the resident to be 
     displaced;
       ``(3) shall ensure that the displaced resident is offered 
     comparable housing in accordance with the notice under 
     paragraph (1);
       ``(4) shall provide any necessary counseling for the 
     displaced resident; and
       ``(5) shall not transfer possession of the unit until the 
     resident is relocated.
       ``(f) Financing and Assistance.--A homeownership program 
     under this section may provide financing for acquisition of 
     housing by families purchasing under the program, or for 
     acquisition of housing by the public housing agency for sale 
     under the program, in any manner considered appropriate by 
     the agency (including sale to a resident management 
     corporation).
       ``(g) 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.
       ``(h) 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.
       ``(i) 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) some or all of the economic gain derived from any 
     such resale occurring during the 5-year period beginning upon 
     purchase of the dwelling unit by 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)(A) 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.
       ``(j) Net Proceeds.--The net proceeds of any sales under a 
     homeownership program under this section remaining after 
     payment of all costs of the sale shall be used for purposes 
     relating to low-income housing and in accordance with the 
     public housing agency plan of the agency carrying out the 
     program.
       ``(k) Homeownership Assistance.--From amounts distributed 
     to a public housing agency under the Capital Fund under 
     section 9(d), or from other income earned by the public 
     housing agency, the public housing agency may provide 
     assistance to public housing residents to facilitate the 
     ability of those residents to purchase a principal residence, 
     including a residence other than a residence located in a 
     public housing project.
       ``(l) Inapplicability of Disposition Requirements.--The 
     provisions of section 18 shall not apply to disposition of 
     public housing dwelling units under a homeownership program 
     under this section.''.

     SEC. 537. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO 
                   TENANT-BASED ASSISTANCE.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new section:

     ``SEC. 33. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING 
                   TO TENANT-BASED ASSISTANCE.

       ``(a) Identification of Units.--Each public housing agency 
     shall identify all public housing projects of the public 
     housing agency that meet all of the following requirements:
       ``(1) The project is on the same or contiguous sites.
       ``(2) The project is determined by the public housing 
     agency to be distressed, which determination shall be made in 
     accordance with guidelines established by the Secretary, 
     which guidelines shall take into account the criteria 
     established in the Final Report of the National Commission on 
     Severely Distressed Public Housing (August 1992).
       ``(3) The project--
       ``(A) is identified as distressed housing under paragraph 
     (2) for which the public housing agency cannot assure the 
     long-term viability as public housing through reasonable 
     modernization expenses, density reduction, achievement of a 
     broader range of family income, or other measures; or
       ``(B) has an estimated cost, during the remaining useful 
     life of the project, of continued operation and modernization 
     as public housing that exceeds the estimated cost, during the 
     remaining useful life of the project, of providing tenant-
     based assistance under section 8 for all families in 
     occupancy, based on appropriate indicators of cost (such as 
     the percentage of total development costs required for 
     modernization).
       ``(b) Consultation.--Each public housing agency shall 
     consult with the appropriate public housing residents and the 
     appropriate unit of general local government in identifying 
     any public housing projects under subsection (a).
       ``(c) Plan for Removal of Units From Inventories of 
     PHA's.--
       ``(1) Development.--Each public housing agency shall 
     develop and carry out a 5-year plan in conjunction with the 
     Secretary for the removal of public housing units identified 
     under subsection (a) from the inventory of the public housing 
     agency and the annual contributions contract.
       ``(2) Approval.--Each plan required under paragraph (1) 
     shall--
       ``(A) be included as part of the public housing agency 
     plan;
       ``(B) be certified by the relevant local official to be in 
     accordance with the comprehensive housing affordability 
     strategy under title I of the Housing and Community 
     Development Act of 1992; and
       ``(C) include a description of any disposition and 
     demolition plan for the public housing units.
       ``(3) Extensions.--The Secretary may extend the 5-year 
     deadline described in paragraph (1) by not more than an 
     additional 5 years if the Secretary makes a determination 
     that the deadline is impracticable.
       ``(4) Review by secretary.--
       ``(A) Failure to identify projects.--If the Secretary 
     determines, based on a plan submitted under this subsection, 
     that a public housing agency has failed to identify 1 or more 
     public housing projects that the Secretary determines should 
     have been identified under subsection (a), the Secretary may 
     designate the public housing projects to be removed from the 
     inventory of the public housing agency pursuant to this 
     section.
       ``(B) Erroneous identification of projects.--If the 
     Secretary determines, based on a plan submitted under this 
     subsection, that a public housing agency has identified 1 or 
     more public housing projects that should not have been 
     identified pursuant to subsection (a), the Secretary shall--
       ``(i) require the public housing agency to revise the plan 
     of the public housing agency under this subsection; and
       ``(ii) prohibit the removal of any such public housing 
     project from the inventory of the public housing agency under 
     this section.
       ``(d) Conversion to Tenant-Based Assistance.--
       ``(1) In general.--To the extent approved in advance in 
     appropriations Acts, the Secretary shall make budget 
     authority available to a public housing agency to provide 
     assistance under this Act to families residing in any public 
     housing project that, pursuant to this section, is removed 
     from the inventory of the agency and the annual contributions 
     contract of the agency.
       ``(2) Conversion requirements.--Each agency carrying out a 
     plan under subsection (c) for removal of public housing 
     dwelling units from the inventory of the agency shall--
       ``(A) notify each family residing in a public housing 
     project to be converted under the plan

[[Page H9394]]

     90 days prior to the displacement date, except in cases of 
     imminent threat to health or safety, consistent with any 
     guidelines issued by the Secretary governing such 
     notifications, that--
       ``(i) the public housing project will be removed from the 
     inventory of the public housing agency; and
       ``(ii) each family displaced by such action will be offered 
     comparable housing--

       ``(I) that meets housing quality standards; and
       ``(II) which may include--

       ``(aa) tenant-based assistance, except that the requirement 
     under this clause regarding offering of comparable housing 
     shall be fulfilled by use of tenant-based assistance only 
     upon the relocation of such family into such housing;
       ``(bb) project-based assistance; or
       ``(cc) occupancy in a unit operated or assisted by the 
     public housing agency at a rental rate paid by the family 
     that is comparable to the rental rate applicable to the unit 
     from which the family is vacated.
       ``(B) provide any necessary counseling for families 
     displaced by such action;
       ``(C) ensure that, if the project (or portion) converted is 
     used as housing after such conversion, each resident may 
     choose to remain in their dwelling unit in the project and 
     use the tenant-based assistance toward rent for that unit;
       ``(D) ensure that each displaced resident is offered 
     comparable housing in accordance with the notice under 
     subparagraph (A); and
       ``(E) provide any actual and reasonable relocation expenses 
     for families displaced by such action.
       ``(e) Cessation of Unnecessary Spending.--Notwithstanding 
     any other provision of law, if, in the determination of the 
     Secretary, a project or projects of a public housing agency 
     meet or are likely to meet the criteria set forth in 
     subsection (a), the Secretary may direct the agency to cease 
     additional spending in connection with such project or 
     projects until the Secretary determines or approves an 
     appropriate course of action with respect to such project or 
     projects under this section, except to the extent that 
     failure to expend such amounts would endanger the health or 
     safety of residents in the project or projects.
       ``(f) Use of Budget Authority.--Notwithstanding any other 
     provision of law, if a project or projects are identified 
     pursuant to subsection (a), the Secretary may authorize or 
     direct the transfer, to the tenant-based assistance program 
     of such agency or to appropriate site revitalization or other 
     capital improvements approved by the Secretary, of--
       ``(1) 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 
     project or projects pursuant to section 14 of the United 
     States Housing Act of 1937 (as in effect immediately before 
     the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998);
       ``(2) 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 project or projects;
       ``(3) 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 project or projects pursuant to section 5(j)(2) of the 
     United States Housing Act of 1937, as in effect immediately 
     before the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998; and
       ``(4) in the case of an agency receiving assistance 
     pursuant to the formulas under section 9, any amounts 
     provided to the agency which are attributable pursuant to the 
     formulas for allocating such assistance to such project or 
     projects.
       ``(g) Removal by Secretary.--The Secretary shall take 
     appropriate actions to ensure removal of any public housing 
     project identified under subsection (a) from the inventory of 
     a public housing agency, if the public housing agency fails 
     to adequately develop a plan under subsection (c) with 
     respect to that project, or fails to adequately implement 
     such plan in accordance with the terms of the plan.
       ``(h) Administration.--
       ``(1) In general.--The Secretary may require a public 
     housing agency to provide to the Secretary or to public 
     housing residents such information as the Secretary considers 
     to be necessary for the administration of this section.
       ``(2) Applicability of section 18.--Section 18 shall not 
     apply to the demolition of public housing projects removed 
     from the inventory of the public housing agency under this 
     section.''.
       (b) Conforming Amendment.--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) is repealed.
       (c) Transition.--
       (1) Use of amounts.--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 section 33 of the United States Housing Act of 
     1937 (as added by subsection (a) of this section).
       (2) Savings provision.--Notwithstanding the amendments made 
     by this section, section 202 of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1996 (42 U.S.C. 14371 note) and 
     any regulations implementing such section, as in effect 
     immediately before the enactment of this Act, shall continue 
     to apply to public housing developments identified by the 
     Secretary or a public housing agency for conversion pursuant 
     to that section or for assessment of whether such conversion 
     is required prior to enactment of this Act.

     SEC. 538. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new section:

     ``SEC. 34. SERVICES FOR PUBLIC HOUSING RESIDENTS.

       ``(a) In General.--To the extent that amounts are provided 
     in advance in appropriations Acts, the Secretary may make 
     grants to public housing agencies on behalf of public housing 
     residents, or directly to resident management corporations, 
     resident councils, or resident organizations (including 
     nonprofit entities supported by residents), for the purposes 
     of providing a program of supportive services and resident 
     empowerment activities to provide supportive services to 
     public housing residents or assist such residents in becoming 
     economically self-sufficient.
       ``(b) Eligible Activities.--Grantees under this section may 
     use such amounts only for activities on or near the property 
     of the public housing agency or public housing project that 
     are designed to promote the self-sufficiency of public 
     housing residents or provide supportive services for such 
     residents, including activities relating to--
       ``(1) physical improvements to a public housing project in 
     order to provide space for supportive services for residents;
       ``(2) the provision of service coordinators or a congregate 
     housing services program for elderly individuals, elderly 
     disabled individuals, nonelderly disabled individuals, or 
     temporarily disabled individuals;
       ``(3) the provision of services related to work readiness, 
     including education, job training and counseling, job search 
     skills, business development training and planning, tutoring, 
     mentoring, adult literacy, computer access, personal and 
     family counseling, health screening, work readiness health 
     services, transportation, and child care;
       ``(4) economic and job development, including employer 
     linkages and job placement, and the start-up of resident 
     microenterprises, community credit unions, and revolving loan 
     funds, including the licensing, bonding, and insurance needed 
     to operate such enterprises;
       ``(5) resident management activities and resident 
     participation activities; and
       ``(6) other activities designed to improve the economic 
     self-sufficiency of residents.
       ``(c) Funding Distribution.--
       ``(1) In general.--Except for amounts provided under 
     subsection (d), the Secretary may distribute amounts made 
     available under this section on the basis of a competition or 
     a formula, as appropriate.
       ``(2) Factors for distribution.--Factors for distribution 
     under paragraph (1) shall include--
       ``(A) the demonstrated capacity of the applicant to carry 
     out a program of supportive services or resident empowerment 
     activities;
       ``(B) the ability of the applicant to leverage additional 
     resources for the provision of services; and
       ``(C) the extent to which the grant will result in a high 
     quality program of supportive services or resident 
     empowerment activities.
       ``(d) Matching Requirement.--The Secretary may not make any 
     grant under this section to any applicant unless the 
     applicant supplements amounts made available under this 
     section with funds from sources other than this section in an 
     amount equal to not less than 25 percent of the grant amount. 
     Such supplemental amounts may include--
       ``(1) funds from other Federal sources;
       ``(2) funds from any State or local government sources;
       ``(3) funds from private contributions; and
       ``(4) the value of any in-kind services or administrative 
     costs provided to the applicant.
       ``(e) Funding for Resident Organizations.--To the extent 
     that there are a sufficient number of qualified applications 
     for assistance under this section, not less than 25 percent 
     of any amounts appropriated to carry out this section shall 
     be provided directly to resident councils, resident 
     organizations, and resident management corporations. In any 
     case in which a resident council, resident organization, or 
     resident management corporation lacks adequate expertise, the 
     Secretary may require the council, organization, or 
     corporation to utilize other qualified organizations as 
     contract administrators with respect to financial assistance 
     provided under this section.''.
       (b) Assessment and Report by Secretary.--Not later than 3 
     years after the date of the enactment of the Quality Housing 
     and Work Responsibility Act of 1998, the Secretary of Housing 
     and Urban Development shall--
       (1) conduct an evaluation and assessment of grants carried 
     out by resident organizations, and particularly of the effect 
     of the grants 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.
       This subsection shall take effect on the date of the 
     enactment of this Act.

     SEC. 539. MIXED-FINANCE PUBLIC HOUSING.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.), as amended by the preceding provisions of this 
     Act, is further amended by adding at the end the following 
     new section:

[[Page H9395]]

     ``SEC. 35. MIXED FINANCE PUBLIC HOUSING.

       ``(a) Authority.--A public housing agency may own, operate, 
     assist, or otherwise participate in 1 or more mixed-finance 
     projects in accordance with this section.
       ``(b) Assistance.--
       ``(1) Forms.--A public housing agency may provide to a 
     mixed-finance project assistance from the Operating Fund 
     under section 9, assistance from the Capital Fund under such 
     section, or both forms of assistance. A public housing agency 
     may, in accordance with regulations established by the 
     Secretary, provide capital assistance to a mixed-finance 
     project in the form of a grant, loan, guarantee, or other 
     form of investment in the project, which may involve drawdown 
     of funds on a schedule commensurate with construction draws 
     for deposit into an interest-bearing escrow account to serve 
     as collateral or credit enhancement for bonds issued by a 
     public agency, or for other forms of public or private 
     borrowings, for the construction or rehabilitation of the 
     development.
       ``(2) Use.--To the extent deemed appropriate by the 
     Secretary, assistance used in connection with the costs 
     associated with the operation and management of mixed-finance 
     projects may be used for funding of an operating reserve to 
     ensure affordability for low-income and very low-income 
     families in lieu of the availability of operating funds for 
     public housing units in a mixed-finance project.
       ``(c) Compliance With Public Housing Requirements.--The 
     units assisted with capital or operating assistance in a 
     mixed-finance project shall be developed, operated, and 
     maintained in accordance with the requirements of this Act 
     relating to public housing during the period required by 
     under this Act, unless otherwise specified in this section. 
     For purposes of this Act, any reference to public housing 
     owned or operated by a public housing agency shall include 
     dwelling units in a mixed finance project that are assisted 
     by the agency with capital or operating assistance.
       ``(d) Mixed-Finance Projects.--
       ``(1) In general.--For purposes of this section, the term 
     `mixed-finance project' means a project that meets the 
     requirements of paragraph (2) and is financially assisted by 
     private resources, which may include low-income housing tax 
     credits, in addition to amounts provided under this Act.
       ``(2) Types of projects.--The term includes a project that 
     is developed--
       ``(A) by a public housing agency or by an entity affiliated 
     with a public housing agency;
       ``(B) 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, managing member, or otherwise participates in the 
     activities of that entity;
       ``(C) by any entity that grants to the public housing 
     agency the right of first refusal and first option to 
     purchase, after the close of the compliance period, of the 
     qualified low-income building in which the public housing 
     units exist in accordance with section 42(i)(7) of the 
     Internal Revenue Code of 1986; or
       ``(D) in accordance with such other terms and conditions as 
     the Secretary may prescribe by regulation.
       ``(e) Structure of Projects.--Each mixed-finance project 
     shall be developed--
       ``(1) in a manner that ensures that public housing units 
     are made available in the project, by regulatory and 
     operating agreement, master contract, individual lease, 
     condominium or cooperative agreement, or equity interest;
       ``(2) in a manner that ensures that the number of public 
     housing units bears approximately the same proportion to the 
     total number of units in the mixed-finance project as the 
     value of the total financial commitment provided by the 
     public housing agency bears to the value of the total 
     financial commitment in the project, or shall not be less 
     than the number of units that could have been developed under 
     the conventional public housing program with the assistance, 
     or as may otherwise be approved by the Secretary; and
       ``(3) in accordance with such other requirements as the 
     Secretary may prescribe by regulation.
       ``(f) Taxation.--
       ``(1) In general.--A public housing agency may elect to 
     exempt all public housing units in a mixed-finance project--
       ``(A) from the provisions of section 6(d), and instead 
     subject such units to local real estate taxes; and
       ``(B) from the finding of need and cooperative agreement 
     provisions under section 5(e)(1)(ii) and 5(e)(2), but only if 
     the development of the units is not inconsistent with the 
     jurisdiction's comprehensive housing affordability strategy.
       ``(2) Low-income housing tax credit.--With respect to any 
     unit in a mixed-finance project 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 may be set at levels not to exceed the amounts 
     allowable under that section, provided that such levels for 
     public housing residents do not exceed the amounts allowable 
     under section 3.
       ``(g) Use of Savings.--Notwithstanding any other provision 
     of this Act, to the extent deemed appropriate by the 
     Secretary, to facilitate the establishment of 
     socioeconomically mixed communities, a public housing agency 
     that uses assistance from the Capital Fund for a mixed-
     finance project, to the extent that income from such a 
     project reduces the amount of assistance used for operating 
     or other costs relating to public housing, may use such 
     resulting savings to rent privately developed dwelling units 
     in the neighborhood of the mixed-finance project. Such units 
     shall be made available for occupancy only by low-income 
     families eligible for residency in public housing.
       ``(h) Effect of Certain Contract Terms.--If an entity that 
     owns or operates a mixed-finance project, that includes a 
     significant number of units other than public housing units 
     enters into a contract with a public housing agency, the 
     terms of which obligate the entity to operate and maintain a 
     specified number of units in the project as public housing 
     units in accordance with the requirements of this Act for the 
     period required by law, such contractual terms may provide 
     that, if, as a result of a reduction in appropriations under 
     section 9 or any other change in applicable law, the public 
     housing agency is unable to fulfill its contractual 
     obligations with respect to those public housing units, that 
     entity may deviate, under procedures and requirements 
     developed through regulations by the Secretary, from 
     otherwise applicable restrictions under this Act regarding 
     rents, income eligibility, and other areas of public housing 
     management with respect to a portion or all of those public 
     housing units, to the extent necessary to preserve the 
     viability of those units while maintaining the low-income 
     character of the units to the maximum extent practicable.''.
       (b) Regulations.--The Secretary shall issue such 
     regulations as may be necessary to promote the development of 
     mixed-finance projects, as that term is defined in section 
     3(b) of the United States Housing Act of 1937 (as amended by 
     this Act).
       Subtitle C--Section 8 Rental and Homeownership Assistance

     SEC. 545. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.

       (a) In General.--Section 8(o) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)) is amended to read as 
     follows:
       ``(o) Voucher Program.--
       ``(1) Authority.--
       ``(A) In general.--The Secretary may provide assistance to 
     public housing agencies for tenant-based assistance using a 
     payment standard established in accordance with subparagraph 
     (B). The payment standard shall be used to determine the 
     monthly assistance that may be paid for any family, as 
     provided in paragraph (2).
       ``(B) Establishment of payment standard.--Except as 
     provided under subparagraph (D), the payment standard for 
     each size of dwelling unit in a market area shall not exceed 
     110 percent of the fair market rental established under 
     subsection (c) for the same size of dwelling unit in the same 
     market area and shall be not less than 90 percent of that 
     fair market rental.
       ``(C) Set-aside.--The Secretary may set aside not more than 
     5 percent of the budget authority made available for 
     assistance under this subsection as an adjustment pool. The 
     Secretary shall use amounts in the adjustment pool to make 
     adjusted payments to public housing agencies under 
     subparagraph (A), to ensure continued affordability, if the 
     Secretary determines that additional assistance for such 
     purpose is necessary, based on documentation submitted by a 
     public housing agency.
       ``(D) Approval.--The Secretary may require a public housing 
     agency to submit the payment standard of the public housing 
     agency to the Secretary for approval, if the payment standard 
     is less than 90 percent of the fair market rental or exceeds 
     110 percent of the fair market rental.
       ``(E) Review.--The Secretary--
       ``(i) shall monitor rent burdens and review any payment 
     standard that results in a significant percentage of the 
     families occupying units of any size paying more than 30 
     percent of adjusted income for rent; and
       ``(ii) may require a public housing agency to modify the 
     payment standard of the public housing agency based on the 
     results of that review.
       ``(2) Amount of monthly assistance payment.--Subject to the 
     requirement under section 3(a)(3) (relating to minimum rental 
     amount), the monthly assistance payment for a family 
     receiving assistance under this subsection shall be 
     determined as follows:
       ``(A) Tenant-based assistance; rent not exceeding payment 
     standard.--For a family receiving tenant-based assistance, if 
     the rent for the family (including the amount allowed for 
     tenant-paid utilities) does not exceed the applicable payment 
     standard established under paragraph (1), the monthly 
     assistance payment for the family shall be equal to the 
     amount by which the rent (including the amount allowed for 
     tenant-paid utilities) exceeds the greatest of the following 
     amounts, rounded to the nearest dollar:
       ``(i) 30 percent of the monthly adjusted income of the 
     family.
       ``(ii) 10 percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency and a part of those payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by that agency to meet the 
     housing costs of the family, the portion of those payments 
     that is so designated.
       ``(B) Tenant-based assistance; rent exceeding payment 
     standard.--For a family receiving tenant-based assistance, if 
     the rent for the family (including the amount allowed for 
     tenant-paid utilities) exceeds the applicable payment 
     standard established under paragraph (1), the monthly 
     assistance payment for the family shall be equal to the 
     amount by which the applicable payment standard exceeds the 
     greatest of amounts under clauses (i), (ii), and (iii) of 
     subparagraph (A).
       ``(C) Families receiving project-based assistance.--For a 
     family receiving project-based assistance, the rent that the 
     family is required to pay shall be determined in accordance 
     with section 3(a)(1), and the amount of the housing 
     assistance payment shall be determined in accordance with 
     subsection (c)(3) of this section.
       ``(3) 40 percent limit.--At the time a family initially 
     receives tenant-based assistance under

[[Page H9396]]

     this section with respect to any dwelling unit, the total 
     amount that a family may be required to pay for rent may not 
     exceed 40 percent of the monthly adjusted income of the 
     family.
       ``(4) Eligible families.--To be eligible to receive 
     assistance under this subsection, a family shall, at the time 
     a family initially receives assistance under this subsection, 
     be a low-income family that is--
       ``(A) a very low-income family;
       ``(B) a family previously assisted under this title;
       ``(C) a low-income family that meets eligibility criteria 
     specified by the public housing agency;
       ``(D) a family that qualifies to receive a voucher in 
     connection with a homeownership program approved under title 
     IV of the Cranston-Gonzalez National Affordable Housing Act; 
     or
       ``(E) a family that qualifies to receive a voucher under 
     section 223 or 226 of the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990.
       ``(5) Annual review of family income.--
       ``(A) In general.--Reviews of family incomes for purposes 
     of this section 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.
       ``(B) Procedures.--Each public housing agency administering 
     assistance under this subsection 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 assistance from the agency is complete and 
     accurate. Each public housing agency shall, not less 
     frequently than annually, conduct a review of the family 
     income of each family receiving assistance under this 
     subsection.
       ``(6) Selection of families and disapproval of owners.--
       ``(A) Preferences.--
       ``(i) Authority to establish.--Each public housing agency 
     may establish a system for making tenant-based assistance 
     under this subsection available on behalf of eligible 
     families that provides preference for such assistance to 
     eligible families having certain characteristics, which may 
     include a preference for families residing in public housing 
     who are victims of a crime of violence (as such term is 
     defined in section 16 of title 18, United States Code) that 
     has been reported to an appropriate law enforcement agency.
       ``(ii) Content.--Each system of preferences established 
     pursuant to this subparagraph 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 5A(f) and under 
     the requirements applicable to the comprehensive housing 
     affordability strategy for the relevant jurisdiction.
       ``(B) Selection of tenants.--Each housing assistance 
     payment contract entered into by the public housing agency 
     and the owner of a dwelling unit) shall provide that the 
     screening and selection of families for those units shall be 
     the function of the owner. In addition, the public housing 
     agency may elect to screen applicants for the program in 
     accordance with such requirements as the Secretary may 
     establish.
       ``(C) PHA disapproval of owners.--In addition to other 
     grounds authorized by the Secretary, a public housing agency 
     may elect not to enter into a housing assistance payments 
     contract under this subsection with an owner who refuses, or 
     has a history of refusing, to take action to terminate 
     tenancy for activity engaged in by the tenant, any member of 
     the tenant's household, any guest, or any other person under 
     the control of any member of the household that--
       ``(i) threatens the health or safety of, or right to 
     peaceful enjoyment of the premises by, other tenants or 
     employees of the public housing agency, owner, or other 
     manager of the housing;
       ``(ii) threatens the health or safety of, or right to 
     peaceful enjoyment of the residences by, persons residing in 
     the immediate vicinity of the premises; or
       ``(iii) is drug-related or violent criminal activity.
       ``(7) Leases and tenancy.--Each housing assistance payment 
     contract entered into by the public housing agency and the 
     owner of a dwelling unit--
       ``(A) shall provide that the lease between the tenant and 
     the owner shall be for a term of not less than 1 year, except 
     that the public housing agency may approve a shorter term for 
     an initial lease between the tenant and the dwelling unit 
     owner if the public housing agency determines that such 
     shorter term would improve housing opportunities for the 
     tenant and if such shorter term is considered to be a 
     prevailing local market practice;
       ``(B) shall provide that the dwelling unit owner shall 
     offer leases to tenants assisted under this subsection that--
       ``(i) are in a standard form used in the locality by the 
     dwelling unit owner; and
       ``(ii) contain terms and conditions that--

       ``(I) are consistent with State and local law; and
       ``(II) apply generally to tenants in the property who are 
     not assisted under this section;

       ``(C) shall provide that during the term of the lease, the 
     owner shall not terminate the tenancy except for serious or 
     repeated violation of the terms and conditions of the lease, 
     for violation of applicable Federal, State, or local law, or 
     for other good cause;
       ``(D) shall provide that during the term of the lease, any 
     criminal activity that threatens the health, safety, or right 
     to peaceful enjoyment of the premises by other tenants, any 
     criminal activity that threatens the health, safety, or right 
     to peaceful enjoyment of their residences by persons residing 
     in the immediate vicinity of the premises, or any violent or 
     drug-related criminal activity on or near such premises, 
     engaged in by a tenant of any unit, any member of the 
     tenant's household, or any guest or other person under the 
     tenant's control, shall be cause for termination of tenancy;
       ``(E) shall provide that any termination of tenancy under 
     this subsection shall be preceded by the provision of written 
     notice by the owner to the tenant specifying the grounds for 
     that action, and any relief shall be consistent with 
     applicable State and local law; and
       ``(F) may include any addenda required by the Secretary to 
     set forth the provisions of this subsection.
       ``(8) Inspection of units by pha's.--
       ``(A) In general.--Except as provided in paragraph (11), 
     for each dwelling unit for which a housing assistance payment 
     contract is established under this subsection, the public 
     housing agency shall inspect the unit before any assistance 
     payment is made to determine whether the dwelling unit meets 
     the housing quality standards under subparagraph (B).
       ``(B) Housing quality standards.--The housing quality 
     standards under this subparagraph are standards for safe and 
     habitable housing established--
       ``(i) by the Secretary for purposes of this subsection; or
       ``(ii) by local housing codes or by codes adopted by public 
     housing agencies that--

       ``(I) meet or exceed housing quality standards, except that 
     the Secretary may waive the requirement under this subclause 
     to significantly increase access to affordable housing and to 
     expand housing opportunities for families assisted under this 
     subsection, except where such waiver could adversely affect 
     the health or safety of families assisted under this 
     subsection; and
       ``(II) do not severely restrict housing choice

       ``(C) Inspection.--The determination required under 
     subparagraph (A) shall be made by the public housing agency 
     (or other entity, as provided in paragraph (11)) pursuant to 
     an inspection of the dwelling unit conducted before any 
     assistance payment is made for the unit. Inspections of 
     dwelling units under this subparagraph 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 or, 
     in the case of any public housing agency that provides 
     assistance under this subsection on behalf of more than 1250 
     families, before the expiration of a reasonable period 
     beginning upon such request. The performance of the agency in 
     meeting the 15-day inspection deadline shall be taken into 
     consideration in assessing the performance of the agency.
       ``(D) Annual inspections.--Each public housing agency 
     providing assistance under this subsection (or other entity, 
     as provided in paragraph (11)) shall make an annual 
     inspection of each assisted dwelling unit during the term of 
     the housing assistance payments contract for the unit to 
     determine whether the unit is maintained in accordance with 
     the requirements under subparagraph (A). The agency (or other 
     entity) 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 5(h).
       ``(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 subsection.
       ``(9) Vacated units.--If an assisted family vacates a 
     dwelling unit for which rental assistance is provided under a 
     housing assistance payment 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.
       ``(10) Rent.--
       ``(A) Reasonableness.--The rent for dwelling units for 
     which a housing assistance payment contract is established 
     under this subsection shall be reasonable in comparison with 
     rents charged for comparable dwelling units in the private, 
     unassisted local market.
       ``(B) Negotiations.--A public housing agency (or other 
     entity, as provided in paragraph (11)) shall, at the request 
     of a family receiving tenant-based assistance under this 
     subsection, assist that family in negotiating a reasonable 
     rent with a dwelling unit owner. A public housing agency (or 
     such other entity) shall review the rent for a unit under 
     consideration by the family (and all rent increases for units 
     under lease by the family) to determine whether the rent (or 
     rent increase) requested by the owner is reasonable. If a 
     public housing agency (or other such entity) determines that 
     the rent (or rent increase) for a dwelling unit is not 
     reasonable, the public housing agency (or other such entity) 
     shall not make housing assistance payments to the owner under 
     this subsection with respect to that unit.
       ``(C) Units exempt from local rent control.--If a dwelling 
     unit for which a housing assistance payment contract is 
     established under this subsection is exempt from local rent 
     control provisions during the term of that contract, the rent 
     for that unit shall be reasonable in comparison with other 
     units in the market area that are exempt from local rent 
     control provisions.
       ``(D) Timely payments.--Each public housing agency shall 
     make timely payment of any amounts due to a dwelling unit 
     owner under this subsection. The housing assistance payment

[[Page H9397]]

     contract between the owner and the public housing agency may 
     provide for penalties for the late payment of amounts due 
     under the contract, which shall be imposed on the public 
     housing agency in accordance with generally accepted 
     practices in the local housing market.
       ``(E) Penalties.--Unless otherwise authorized by the 
     Secretary, each public housing agency shall pay any penalties 
     from administrative fees collected by the public housing 
     agency, except that no penalty shall be imposed if the late 
     payment is due to factors that the Secretary determines are 
     beyond the control of the public housing agency.
       ``(11) Leasing of units owned by pha.--If an eligible 
     family assisted under this subsection leases a dwelling unit 
     (other than a public housing dwelling unit) that is owned by 
     a public housing agency administering assistance under this 
     subsection, the Secretary shall require the unit of general 
     local government or another entity approved by the Secretary, 
     to make inspections required under paragraph (8) and rent 
     determinations required under paragraph (10). The agency 
     shall be responsible for any expenses of such inspections and 
     determinations.
       ``(12) Assistance for rental of manufactured housing.--
       ``(A) In general.--A public housing agency may make 
     assistance payments in accordance with this subsection on 
     behalf of a family that utilizes a manufactured home as a 
     principal place of residence. Such payments may be made only 
     for the rental of the real property on which the manufactured 
     home owned by any such family is located.
       ``(B) Rent calculation.--
       ``(i) Charges included.--For assistance pursuant to this 
     paragraph, the rent for the space on which a manufactured 
     home is located and with respect to which assistance payments 
     are to be made shall include maintenance and management 
     charges and tenant-paid utilities.
       ``(ii) Payment standard.--The public housing agency shall 
     establish a payment standard for the purpose of determining 
     the monthly assistance that may be paid for any family under 
     this paragraph. The payment standard may not exceed an amount 
     approved or established by the Secretary.
       ``(iii) Monthly assistance payment.--The monthly assistance 
     payment for a family assisted under this paragraph shall be 
     determined in accordance with paragraph (2).
       ``(13) PHA project-based assistance.--
       ``(A) In general.--If the Secretary enters into an annual 
     contributions contract under this subsection with a public 
     housing agency pursuant to which the public housing agency 
     will enter into a housing assistance payment contract with 
     respect to an existing structure under this subsection--
       ``(i) the housing assistance payment contract may not be 
     attached to the structure unless the owner agrees to 
     rehabilitate or newly construct the structure other than with 
     assistance under this Act, and otherwise complies with this 
     section; and
       ``(ii) the public housing agency may approve a housing 
     assistance payment contract for such existing structures for 
     not more than 15 percent of the funding available for tenant-
     based assistance administered by the public housing agency 
     under this section.
       ``(B) Extension of contract term.--In the case of a housing 
     assistance payment contract that applies to a structure under 
     this paragraph, a public housing agency may enter into a 
     contract with the owner, contingent upon the future 
     availability of appropriated funds for the purpose of 
     renewing expiring contracts for assistance payments, as 
     provided in appropriations Acts, to extend the term of the 
     underlying housing assistance payment contract for such 
     period as the Secretary determines to be appropriate to 
     achieve long-term affordability of the housing. The contract 
     shall obligate the owner to have such extensions of the 
     underlying housing assistance payment contract accepted by 
     the owner and the successors in interest of the owner.
       ``(C) Rent calculation.--For project-based assistance under 
     this paragraph, housing assistance payment contracts shall 
     establish rents and provide for rent adjustments in 
     accordance with subsection (c).
       ``(D) Adjusted rents.--With respect to rents adjusted under 
     this paragraph--
       ``(i) the adjusted rent for any unit shall be reasonable in 
     comparison with rents charged for comparable dwelling units 
     in the private, unassisted, local market; and
       ``(ii) the provisions of subsection (c)(2)(C) shall not 
     apply.
       ``(14) Inapplicability to tenant-based assistance.--
     Subsection (c) shall not apply to tenant-based assistance 
     under this subsection.
       ``(15) Homeownership option.--
       ``(A) In general.--A public housing agency providing 
     assistance under this subsection may, at the option of the 
     agency, provide assistance for homeownership under subsection 
     (y).
       ``(B) Alternative administration.--A public housing agency 
     may contract with a nonprofit organization to administer a 
     homeownership program under subsection (y).
       ``(16) Rental vouchers for relocation of witnesses and 
     victims of crime.--
       ``(A) Witnesses.--Of amounts made available for assistance 
     under this subsection in each fiscal year, the Secretary, in 
     consultation with the Inspector General, shall make available 
     such sums as may be necessary for the relocation of witnesses 
     in connection with efforts to combat crime in public and 
     assisted housing pursuant to requests from law enforcement or 
     prosecution agencies.
       ``(B) Victims of crime.--
       ``(i) In general.--Of amounts made available for assistance 
     under this section in each fiscal year, the Secretary shall 
     make available such sums as may be necessary for the 
     relocation of families residing in public housing who are 
     victims of a crime of violence (as that term is defined in 
     section 16 of title 18, United States Code) that has been 
     reported to an appropriate law enforcement agency.
       ``(ii) Notice.--A public housing agency that receives 
     amounts under this subparagraph shall establish procedures 
     for providing notice of the availability of that assistance 
     to families that may be eligible for that assistance.
       ``(17) Deed restrictions.--Assistance under this subsection 
     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. This paragraph may not be construed to affect 
     the provisions or applicability of the Fair Housing Act.''.
       (b) Conforming Amendment.--Section 8(f)(6) of the United 
     States Housing Act (42 U.S.C. 1437f(f)(6)) is amended by 
     inserting ``or (o)(13)'' after ``(d)(2)''.
       (c) Applicability.--Notwithstanding the amendment made by 
     subsection (a) of this section, any amendments to section 
     8(o) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)) that are contained in title II of this Act shall 
     apply with respect to the provision of assistance under such 
     section during the period before implementation (pursuant to 
     section 559 of this title) of such section 8(o) as amended by 
     subsection (a) of this section.

     SEC. 546. PUBLIC HOUSING AGENCIES.

       Section 3(b)(6) of the United States Housing Act of 1937 
     (42 U.S.C. 1437a(b)(6)) is amended to read as follows:
       ``(6) Public housing agency.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `public housing agency' means any State, county, 
     municipality, or other governmental entity or public body (or 
     agency or instrumentality thereof) which is authorized to 
     engage in or assist in the development or operation of public 
     housing.
       ``(B) Section 8 program.--For purposes of the program for 
     tenant-based assistance under section 8, such term includes--
       ``(i) a consortia of public housing agencies that the 
     Secretary determines has the capacity and capability to 
     administer a program for assistance under such section in an 
     efficient manner;
       ``(ii) any other public or private nonprofit entity that, 
     upon the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998, was 
     administering any program for tenant-based assistance under 
     section 8 of this Act (as in effect before the effective date 
     of such Act), pursuant to a contract with the Secretary or a 
     public housing agency; and
       ``(iii) 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 a program for tenant-based assistance section 8, or 
     is not performing effectively--
       ``(I) the Secretary or another public or private nonprofit 
     entity that by contract agrees to receive assistance amounts 
     under section 8 and enter into housing assistance payments 
     contracts with owners and perform the other functions of 
     public housing agency under section 8; 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 section 8, without regard to any otherwise applicable 
     limitations on its area of operation.''.

     SEC. 547. ADMINISTRATIVE FEES.

       Subsection (q) of section 8 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(q)) is amended to read as 
     follows:
       ``(q) Administrative Fees.--
       ``(1) Fee for ongoing costs of administration.--
       ``(A) In general.--The Secretary shall establish fees for 
     the costs of administering the tenant-based assistance, 
     certificate, voucher, and moderate rehabilitation programs 
     under this section.
       ``(B) Fiscal year 1999.--
       ``(i) Calculation.--For fiscal year 1999, the fee for each 
     month for which a dwelling unit is covered by an assistance 
     contract 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 
     (aa) for the first 600 units, 7.65 percent of the base 
     amount, and (bb) for any additional dwelling units under the 
     program, 7.0 percent of the base amount.

       ``(ii) Base amount.--For purposes of this subparagraph, the 
     base amount shall be the higher of--

       ``(I) the fair market rental established under section 8(c) 
     of this Act (as in effect immediately before the effective 
     date under section 503(a) of the Quality Housing and Work 
     Responsibility Act of 1998) 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 (aa) such fair 
     market rental for fiscal year 1994, or (bb) 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.
       ``(C) 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

[[Page H9398]]

     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.
       ``(D) 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.
       ``(E) Decrease.--The Secretary may decrease the fee for 
     units owned by a public housing agency to reflect reasonable 
     costs of administration.
       ``(2) Fee for preliminary expenses.--The Secretary shall 
     also establish reasonable fees (as determined by the 
     Secretary) for--
       ``(A) the costs of preliminary expenses, in the amount of 
     $500, for a public housing agency, except that such fee shall 
     apply to an agency only in the first year that the agency 
     administers a tenant-based assistance program under this 
     section, and only if, immediately before the effective date 
     under section 503(a) of the Quality Housing and Work 
     Responsibility Act of 1998, the agency was not administering 
     a tenant-based 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;
       ``(B) the costs incurred in assisting families who 
     experience difficulty (as determined by the Secretary) in 
     obtaining appropriate housing under the programs; and
       ``(C) extraordinary costs approved by the Secretary.
       ``(3) Transfer of fees in cases of concurrent geographical 
     jurisdiction.--In each fiscal year, if any public housing 
     agency provides tenant-based assistance under this section 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).
       ``(4) Applicability.--This subsection shall apply to fiscal 
     year 1999 and fiscal years thereafter.''.

     SEC. 548. LAW ENFORCEMENT AND SECURITY PERSONNEL IN ASSISTED 
                   HOUSING.

       Section 8 of the United States Housing Act of 1937 (42 
     U.S.C. 1437f) is amended--
       (1) by transferring and inserting subsection (z) after 
     subsection (y) (and before subsection (aa)); and
       (2) by adding at the end the following new subsection:
       ``(cc) Law Enforcement and Security Personnel.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, in the case of assistance attached to a structure, 
     for the purpose of increasing security for the residents of a 
     project, an owner may admit, and assistance under this 
     section may be provided to, police officers and other 
     security personnel who are not otherwise eligible for 
     assistance under the Act.
       ``(2) Rent requirements.--With respect to any assistance 
     provided by an owner under this subsection, the Secretary 
     may--
       ``(A) permit the owner to establish such rent requirements 
     and other terms and conditions of occupancy that the 
     Secretary considers to be appropriate; and
       ``(B) require the owner to submit an application for those 
     rent requirements, which application shall include such 
     information as the Secretary, in the discretion of the 
     Secretary, determines to be necessary.
       ``(3) Applicability.--This subsection shall apply to fiscal 
     year 1999 and fiscal years thereafter.''.

     SEC. 549. ADVANCE NOTICE TO TENANTS OF EXPIRATION, 
                   TERMINATION, OR OWNER NONRENEWAL OF ASSISTANCE 
                   CONTRACT.

       (a) Permanent Applicability of Notice and Endless Lease 
     Provisions.--
       (1) Notice.--Section 8(c) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f(c)) is amended--
       (A) by striking paragraphs (8) and (10); and
       (B) in paragraph (9), by striking the first sentence and 
     inserting the following new sentence: `` Not less than one 
     year before terminating any contract under which assistance 
     payments are received under this section, other than a 
     contract for tenant-based assistance under this section, an 
     owner shall provide written notice to the Secretary and the 
     tenants involved of the proposed termination, specifying the 
     reasons for the termination with sufficient detail to enable 
     the Secretary to evaluate whether the termination is lawful 
     and whether there are additional actions that can be taken by 
     the Secretary to avoid the termination.''.
       (2) Endless Lease.--Section 8(d)(1)(B) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(B)) is amended--
       (A) in clause (ii) by striking ``(ii)'' and all that 
     follows through ''the owner'' and inserting ``(ii) during the 
     term of the lease, the owner''; and
       (B) in clause (iii), by striking ``(iii)'' and all that 
     follows through ``any criminal activity'' the first place it 
     appears and inserting ``(iii) during the term of the lease, 
     any criminal activity''.
       (3) Permanent effectiveness of amendments.--The amendments 
     under this subsection are made on, and shall apply beginning 
     upon, the date of the enactment of this Act, and shall apply 
     thereafter, notwithstanding section 203 of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 (42 U.S.C. 
     1437f note) or any other provision of law (including the 
     expiration of the applicability of such section 203 or any 
     repeal of such section 203).
       (b) Exemption of Tenant-Based Assistance From Contract 
     Provisions.--Paragraph (9) of section 8(c) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437f(c)(9)), as 
     amended by subsection (a)(1) of this section, is further 
     amended--
       (1) by striking ``(9)'' and inserting ``(8)(A)''; and
       (2) by striking the third sentence and all that follows and 
     inserting the following:
       ``(B) In the case of owner who has requested that the 
     Secretary renew the contract, the owner's notice under 
     subparagraph (A) to the tenants shall include statements 
     that--
       ``(i) the owner currently has a contract with the 
     Department of Housing and Urban Development that pays the 
     Government's share of the tenant's rent and the date on which 
     the contract will expire;
       ``(ii) the owner intends to renew the contract for another 
     year;
       ``(iii) renewal of the contract may depend upon the 
     Congress making funds available for such renewal;
       ``(iv) the owner is required by law to notify tenants of 
     the possibility that the contract may not be renewed if 
     Congress does not provide funding for such renewals;
       ``(v) in the event of nonrenewal, the Department of Housing 
     and Urban Development will provide tenant-based rental 
     assistance to all eligible residents, enabling them to choose 
     the place they wish to rent; and
       ``(vi) the notice itself does not indicate an intent to 
     terminate the contract by either the owner or the Department 
     of Housing and Urban Development, provided there is 
     Congressional approval of funding availability.
       ``(C) Notwithstanding the preceding provisions of this 
     paragraph, if the owner agrees to a 5-year contract renewal 
     offered by the Secretary, payments under which shall be 
     subject to the availability of appropriations for any year, 
     the owner shall provide a written notice to the Secretary and 
     the tenants not less than 180 days before the termination of 
     such contract. In the event the owner does not provide the 
     180-day notice required in the immediately preceding 
     sentence, the owner may not evict the tenants or increase the 
     tenants' rent payment until such time as the owner has 
     provided the 180-day notice and such period has elapsed. The 
     Secretary may allow the owner to renew the terminating 
     contract for a period of time sufficient to give tenants 180 
     days of advance notice under such terms and conditions as the 
     Secretary may require.
       ``(D) Any notice under this paragraph shall also comply 
     with any additional requirements established by the 
     Secretary.
       ``(E) For purposes of this paragraph, the term 
     `termination' means the expiration of the assistance contract 
     or an owner's refusal to renew the assistance contract, and 
     such term shall include termination of the contract for 
     business reasons.''.
       (c) Multifamily Assisted Housing Reform and Affordability 
     Act of 1997.--Section 514(d) of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended by inserting at the end the following new 
     sentences: `In addition, if after giving the notice required 
     in the first sentence, an owner determines to terminate a 
     contract, an owner shall provide an additional written notice 
     with respect to the termination, in a form prescribed by the 
     Secretary, not less than 120 days prior to the termination. 
     In the event the owner does not provide the 120-day notice 
     required in the preceding sentence, the owner may not evict 
     the tenants or increase the tenants' rent payment until such 
     time as the owner has provided the 120-day notice and such 
     period has elapsed. The Secretary may allow the owner to 
     renew the terminating contract for a period of time 
     sufficient to give tenants 120 days of advance notice in 
     accordance with section 524 of this Act.''.

     SEC. 550. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Lower Income Housing Assistance.--Section 8 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f) is 
     amended--
       (1) in subsection (a), by striking the second and third 
     sentences;
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Rental 
     Certificates and''; and
       (B) in the first undesignated paragraph--
       (i) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (ii) by striking the second sentence;
       (3) in subsection (c)--
       (A) in paragraph (3)--
       (i) by striking ``(A)''; and
       (ii) by striking subparagraph (B);
       (B) in the first sentence of paragraph (4), by striking 
     ``or by a family that qualifies to receive'' and all that 
     follows through ``1990'';
       (C) by striking paragraphs (5) and (7); and
       (D) redesignating paragraph (6) as paragraph (5);
       (4) in subsection (d)(2)--
       (A) in subparagraph (A), by striking the third sentence and 
     all that follows through the end of the subparagraph;
       (B) in subparagraph (H), by striking ``(H)'' and all that 
     follows through ``owner'' and inserting ``(H) An owner''; and
       (C) by striking subparagraphs (B) through (E) and 
     redesignating subparagraphs (F) through (H) (as amended by 
     subparagraph (B) of this paragraph) as subparagraphs (B) 
     through (D), respectively;
       (5) in subsection (f)(7)--
       (A) by striking ``(b) or''; and
       (B) by inserting before the period the following: ``and 
     that provides for the eligible family to

[[Page H9399]]

     select suitable housing and to move to other suitable 
     housing''; and
       (6) by striking subsection (j);
       (7) by striking subsection (n);
       (8) in subsection (u)--
       (A) in paragraph (2), by striking ``, certificates''; and
       (B) by striking ``certificates or'' each place that term 
     appears; and
       (9) in subsection (x)(2), by striking ``housing certificate 
     assistance'' and inserting ``tenant-based assistance''.
       (b) HOPWA Grants for Community Residences and Services.--
     Section 861(b)(1)(D) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended 
     by striking ``certificates or vouchers'' and inserting 
     ``assistance''.
       (c) Section 8 Certificates and Vouchers.--Section 931 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437c note) is amended by striking ``assistance under 
     the certificate and voucher programs under sections 8(b) and 
     (o) of such Act'' and inserting ``tenant-based assistance 
     under section 8 of the United States Housing Act of 1937''.
       (d) Assistance for Displaced Residents.--Section 223(a) of 
     the Housing and Community Development Act of 1987 (12 U.S.C. 
     4113(a)) is amended by striking ``assistance under the 
     certificate and voucher programs under sections 8(b) and 
     8(o)'' and inserting ``tenant-based assistance under section 
     8''.
       (e) Rural Housing Preservation Grants.--Section 533(a) of 
     the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in 
     the second sentence by striking ``assistance payments as 
     provided by section 8(o)'' and inserting ``tenant-based 
     assistance as provided under section 8''.
       (f) Repeal of Moving to Opportunities for Fair Housing 
     Demonstration.--Section 152 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 1437f note) is repealed.
       (g) Assistance for Troubled Multifamily Housing Projects.--
     Section 201(m)(2)(A) of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended 
     by striking ``section 8(b)(1)'' and inserting ``section 8''.

     SEC. 551. FUNDING AND ALLOCATION.

       Section 213 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 1439) is amended--
       (1) by striking subsection (c); and
       (2) in subsection (d)--
       (A) in paragraph (1)(A)--
       (i) in clause (i), by adding at the end the following new 
     sentence: ``Amounts for tenant-based assistance under section 
     8(o) of the United States Housing Act of 1937 may not be 
     provided to any public housing agency that has been 
     disqualified from providing such assistance.''; and
       (ii) in clause (ii), by striking ``8(b)(1)'' each place it 
     appears and inserting ``8(o)'';
       (B) by striking paragraph (2); and
       (C) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively.

     SEC. 552. TREATMENT OF COMMON AREAS.

       Section 8(d) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(d)), as amended by the preceding provisions of 
     this Act, is further amended by adding at the end the 
     following new paragraph:
       ``(6) Treatment of common areas.--The Secretary may not 
     provide any assistance amounts pursuant to an existing 
     contract for project-based assistance under this section 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.''.

     SEC. 553. PORTABILITY.

       Section 8(r) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(r)) is amended--
       (1) in paragraph (2), by striking the last sentence;
       (2) in paragraph (3))--
       (A) by striking ``(b) or''; and
       (B) by adding at the end the following: ``The Secretary 
     shall establish procedures for the compensation of public 
     housing agencies that issue vouchers to families that move 
     into or out of the jurisdiction of the public housing agency 
     under portability procedures. The Secretary may reserve 
     amounts available for assistance under subsection (o) to 
     compensate those public housing agencies.'';
       (3) by striking ``(r)'' and all that follows through the 
     end of paragraph (1) and inserting the following:
       ``(r) Portability.--(1) In general.--(A) Any family 
     receiving tenant-based assistance under subsection (o) may 
     receive such assistance to rent an eligible dwelling unit if 
     the dwelling unit to which the family moves is within any 
     area in which a program is being administered under this 
     section.
       ``(B)(i) Notwithstanding subparagraph (A) and subject to 
     any exceptions established under clause (ii) of this 
     subparagraph, 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.
       ``(ii) The Secretary may establish such exceptions to the 
     authority of public housing agencies established under clause 
     (i).''; and
       (5) by adding at the end the following new paragraph:
       ``(5) Lease violations.--A family may not receive a voucher 
     from a public housing agency and move to another jurisdiction 
     under the tenant-based assistance program if the family has 
     moved out of the assisted dwelling unit of the family in 
     violation of a lease.''.

     SEC. 554. LEASING TO VOUCHER HOLDERS.

       Notwithstanding section 203(d) of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 (as contained 
     in section 101(e) of the Omnibus Consolidated Rescissions and 
     Appropriations Act of 1996 (Public Law 104-134; 42 U.S.C. 
     1437f note)), section 8 of the United States Housing Act of 
     1937 (42 U.S.C. 1437f) is amended by striking subsection (t). 
     This section shall apply beginning upon, and the amendment 
     made by this section is made on, and shall apply beginning 
     upon, the date of the enactment of this Act.

     SEC. 555. HOMEOWNERSHIP OPTION.

       (a) In general.--Section 8(y) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(y)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``A family receiving'' and all that follows through ``if the 
     family'' and inserting the following: ``A public housing 
     agency providing tenant-based assistance on behalf of an 
     eligible family under this section may provide assistance for 
     an eligible family that purchases a dwelling unit (including 
     a unit under a lease-purchase agreement) that will be owned 
     by 1 or more members of the family, and will be occupied by 
     the family, if the family'';
       (B) in subparagraph (A), by inserting before the semicolon 
     ``, or owns or is acquiring shares in a cooperative''; and
       (C) in subparagraph (B)--
       (i) by striking ``(i) participates'' and all that follows 
     through ``(ii) demonstrates'' and inserting ``demonstrates''; 
     and
       (ii) by inserting ``, except that the Secretary may provide 
     for the consideration of public assistance in the case of an 
     elderly family or a disabled family'' after ``other than 
     public assistance'';
       (2) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Determination of amount of assistance.--
       ``(A) Monthly expenses not exceeding payment standard.--If 
     the monthly homeownership expenses, as determined in 
     accordance with requirements established by the Secretary, do 
     not exceed the payment standard, the monthly assistance 
     payment shall be the amount by which the homeownership 
     expenses exceed the highest of the following amounts, rounded 
     to the nearest dollar:
       ``(i) 30 percent of the monthly adjusted income of the 
     family.
       ``(ii) 10 percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency, and a portion of those 
     payments, adjusted in accordance with the actual housing 
     costs of the family, is specifically designated by that 
     agency to meet the housing costs of the family, the portion 
     of those payments that is so designated.
       ``(B) Monthly expenses exceed payment standard.--If the 
     monthly homeownership expenses, as determined in accordance 
     with requirements established by the Secretary, exceed the 
     payment standard, the monthly assistance payment shall be the 
     amount by which the applicable payment standard exceeds the 
     highest of the amounts under clauses (i), (ii), and (iii) of 
     subparagraph (A).'';
       (3) by striking paragraphs (3), (4), and (5) and inserting 
     the following new paragraphs:
       ``(3) Inspections and contract conditions.--
       ``(A) In general.--Each contract for the purchase of a unit 
     to be assisted under this section shall--
       ``(i) provide for pre-purchase inspection of the unit by an 
     independent professional; and
       ``(ii) require that any cost of necessary repairs be paid 
     by the seller.
       ``(B) Annual inspections not required.--The requirement 
     under subsection (o)(8)(A)(ii) for annual inspections shall 
     not apply to units assisted under this section.
       ``(4) Other authority of the secretary.--The Secretary 
     may--
       ``(A) limit the term of assistance for a family assisted 
     under this subsection; and
       ``(B) modify the requirements of this subsection as the 
     Secretary determines to be necessary to make appropriate 
     adaptations for lease-purchase agreements.''; and
       (4) by redesignating paragraphs (6), (7) (as previously 
     amended by this Act), and (8) as paragraphs (5), (6), and 
     (7), respectively.
       (b) Demonstration Program.--
       (1) In general.--With the consent of the affected public 
     housing agencies, the Secretary may carry out (or contract 
     with 1 or more entities to carry out) a demonstration program 
     under section 8(y) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(y)) to expand homeownership opportunities 
     for low-income families.
       (2) Report.--The Secretary shall report annually to 
     Congress on activities conducted under this subsection.
       (c) Applicability.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 556. RENEWALS.

       (a) In General.--Section 8 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(dd) Tenant-Based Contract Renewals.--Subject to amounts 
     provided in appropriation Acts, starting in fiscal year 1999, 
     the Secretary shall renew all expiring tenant-based annual

[[Page H9400]]

     contribution contracts under this section by applying an 
     inflation factor based on local or regional factors to an 
     allocation baseline. The allocation baseline shall be 
     calculated by including, at a minimum, amounts sufficient to 
     ensure continued assistance for the actual number of families 
     assisted as of October 1, 1997, with appropriate upward 
     adjustments for incremental assistance and additional 
     families authorized subsequent to that date.''.
       (b) Implementation.--The Secretary of Housing and Urban 
     Development shall implement the provision added by the 
     amendment made by subsection (a) through notice, not later 
     than December 31, 1998, and shall issue final regulations 
     which shall be developed pursuant to the procedures for 
     issuance of regulations under the negotiated rulemaking 
     procedure under subchapter III of chapter 5 of title 5, 
     United States Code, not later than one year after the date of 
     the enactment of this Act.

     SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall carry out a program during fiscal years 
     1999, 2000, and 2001 to demonstrate the effectiveness of 
     providing, directly to eligible families that own 
     manufactured homes and rent real property on which their 
     homes are located, tenant-based assistance for the rental of 
     such property that would otherwise be provided directly to 
     the owners of such real property under section 8(o)(12) of 
     the United States Housing Act of 1937.
       (b) Requirements.--The demonstration program under this 
     section shall be subject to the following requirements:
       (1) Scope.--The Secretary of Housing and Urban Development 
     shall carry out the demonstration program with respect to the 
     Housing Authority of the County of San Diego, in California, 
     and the Housing Authority of the City of San Diego, in 
     California.
       (2) Eligible families.--Under the demonstration program, 
     each public housing agency shall provide tenant-based 
     assistance under section 8(o) of the United States Housing 
     Act of 1937 on behalf of eligible families who rent real 
     property on which their manufactured homes are located and 
     which is owned by an owner who has refused to participate in 
     the section 8 program.
       (3) Participation arrangements.--Each public housing agency 
     participating in the demonstration program shall enter into 
     arrangements with families assisted under the program 
     providing for their participation in the program and may, to 
     the extent authorized by the Secretary, continue to provide 
     assistance in the same manner as under the demonstration 
     program after its conclusion to such participating families.
       (4) Waiver of other requirements.--Under the demonstration 
     program, the Secretary may waive, or specify alternative 
     requirements for, requirements established by or under 
     section 8 of the United States Housing Act of 1937 relating 
     to the provision of assistance under subsection (j) or 
     (o)(12) of such section.
       (c) Report.--Not later than March 31, 2002, the Secretary 
     shall submit a report to the Congress describing and 
     evaluating the demonstration program under this section.
       (d) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 558. AUTHORIZATIONS OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated for 
     providing public housing agencies with tenant-based housing 
     assistance under section 8 of the United States Housing Act 
     of 1937--
       (1) to provide amounts for incremental assistance under 
     such section 8--
       (A) for each of fiscal years 2000 and 2001, the amount 
     necessary to assist 100,000 incremental dwelling units in 
     each such fiscal year; and
       (B) for each of fiscal years 1999, 2002, and 2003, such 
     sums as may be necessary; and
       (2) such sums as may be necessary for each of fiscal years 
     1999, 2000, 2001, 2002, and 2003, for--
       (A) relocation and replacement housing for units that are 
     demolished and disposed of from the public housing inventory 
     (in addition to other amounts that may be available for such 
     purposes);
       (B) relocation of residents of properties that are owned by 
     the Secretary and being disposed of or that are discontinuing 
     section 8 project-based assistance;
       (C) the conversion of section 23 projects to assistance 
     under section 8;
       (D) carrying out the family unification program;
       (E) 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;
       (F) nonelderly disabled families affected by the 
     designation of a public housing development under section 7 
     of the United States Housing Act of 1937, the establishment 
     of preferences in accordance with section 651 of the Housing 
     and Community Development Act of 1992, 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;
       (G) housing vouchers for homeless individuals; and
       (H) housing vouchers to compensate public housing agencies 
     which issue vouchers to families that move into or out of the 
     jurisdiction of the agency under portability procedures.
       (b) Assistance for Disabled Families.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated, for tenant-based assistance under section 
     8 of the United States Housing Act of 1937, to be used in 
     accordance with paragraph (2), $50,000,000 for fiscal year 
     2000, 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 tenant-based assistance under section 8 of 
     the United States Housing Act of 1937 for nonelderly disabled 
     families (including such families relocating pursuant to 
     designation of a public housing development under 7 of such 
     Act or to 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 assistance under 
     such section 8).
       (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) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 559. RULEMAKING AND IMPLEMENTATION.

       (a) Interim Regulations.--The Secretary of Housing and 
     Urban Development shall issue such interim regulations as may 
     be necessary to implement the amendments made by this 
     subtitle and other provisions in this title which relate to 
     section 8(o) of the United States Housing Act of 1937.
       (b) Final Regulations.--The Secretary shall issue final 
     regulations necessary to implement the amendments made by 
     this subtitle and other provisions in this title which relate 
     to section 8(o) of the United States Housing Act of 1937 not 
     later then 1 year after the date of enactment of this Act.
       (c) Factors For Consideration.--Before the publication of 
     the final regulations under subsection (b), in addition to 
     public comments invited in connection with the publication of 
     the interim rule, the Secretary shall--
       (1) seek recommendations on the implementation of sections 
     8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the United States 
     Housing Act of 1937 and of renewals of expiring tenant-based 
     assistance from organizations representing--
       (A) State or local public housing agencies;
       (B) owners and managers of tenant-based housing assisted 
     under section 8 of the United States Housing Act of 1937;
       (C) families receiving tenant-based assistance under 
     section 8 of the United States Housing Act of 1937; and
       (D) legal service organizations; and
       (2) convene not less than 2 public forums at which the 
     persons or organizations making recommendations under 
     paragraph (1) may express views concerning the proposed 
     disposition of the recommendations.
       (d) Conversion Assistance.--
       (1) In general.--The Secretary may provide for the 
     conversion of assistance under the certificate and voucher 
     programs under subsections (b) and (o) of section 8 of the 
     United States Housing Act of 1937, as in effect before the 
     applicability of the amendments made by this subtitle, to the 
     voucher program established by the amendments made by this 
     subtitle.
       (2) Continued applicability.--The Secretary may apply the 
     provisions of the United States Housing Act of 1937, or any 
     other provision of law amended by this subtitle, as those 
     provisions were in effect immediately before the date of the 
     enactment of this Act (except that such provisions shall be 
     subject to any amendments to such provisions that may be 
     contained in title II of this Act), to assistance obligated 
     by the Secretary before October 1, 1999, for the certificate 
     or voucher program under section 8 of the United States 
     Housing Act of 1937, if the Secretary determines that such 
     action is necessary for simplification of program 
     administration, avoidance of hardship, or other good cause.
       (e) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.
           Subtitle D--Home Rule Flexible Grant Demonstration

     SEC. 561. HOME RULE FLEXIBLE GRANT DEMONSTRATION PROGRAM.

       The United States Housing Act of 1937 (42 U.S.C. 1437 et 
     seq.) is amended by adding at the end the following new 
     title:
           ``TITLE IV--HOME RULE FLEXIBLE GRANT DEMONSTRATION

     ``SEC. 401. PURPOSE.

       The purpose of this title is to demonstrate the 
     effectiveness of authorizing local governments and 
     municipalities, in coordination with the public housing 
     agencies for such jurisdictions--
       ``(1) to receive and combine program allocations of covered 
     housing assistance; and
       ``(2) to design creative approaches for providing and 
     administering Federal housing assistance based on the 
     particular needs of the jurisdictions that--
       ``(A) provide incentives to low-income families with 
     children whose head of the household is employed, seeking 
     employment, or preparing for employment by participating in a 
     job training or educational program, or any program that 
     otherwise assists individuals in obtaining employment and 
     attaining economic self-sufficiency;
       ``(B) reduce costs of Federal housing assistance and 
     achieve greater cost-effectiveness in Federal housing 
     assistance expenditures;
       ``(C) increase the stock of affordable housing and housing 
     choices for low-income families;
       ``(D) increase homeownership among low-income families;
       ``(E) reduce geographic concentration of assisted families;
       ``(F) reduce homelessness through providing permanent 
     housing solutions;
       ``(G) improve program management; and
       ``(H) achieve such other purposes with respect to low-
     income families, as determined by the participating local 
     governments and municipalities in coordination with the 
     public housing agencies;

[[Page H9401]]

     ``SEC. 402. FLEXIBLE GRANT PROGRAM.

       ``(a) Authority and Use.--The Secretary shall carry out a 
     demonstration program in accordance with the purposes under 
     section 401 and the provisions of this title. A jurisdiction 
     approved by the Secretary for participation in the program 
     may receive and combine and enter into performance-based 
     contracts for the use of amounts of covered housing 
     assistance, in the manner determined appropriate by the 
     participating jurisdiction, during the period of the 
     jurisdiction's participation--
       ``(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 through providing permanent 
     housing solutions;
       ``(3) to increase homeownership among low-income families; 
     or
       ``(4) for other housing purposes for low-income families 
     determined by the participating jurisdiction.
       ``(b) Period of Participation.--A jurisdiction may 
     participate in the demonstration program under this title for 
     a period consisting of not less than 1 nor more than 5 fiscal 
     years.
       ``(c) Participating Jurisdictions.--
       ``(1) In general.--Subject to paragraph (2), during the 4-
     year period consisting of fiscal years 1999 through 2002, the 
     Secretary may approve for participation in the program under 
     this title not more than an aggregate of 100 jurisdictions 
     over the entire term of the demonstration program. A 
     jurisdiction that was approved for participation in the 
     demonstration program under this title in a fiscal year and 
     that is continuing such participation in any subsequent 
     fiscal year shall count as a single jurisdiction for purposes 
     of the numerical limitation under this paragraph.
       ``(2) Exclusion of high performing agencies.--
     Notwithstanding any other provision of this title other than 
     paragraph (4) of this subsection, the Secretary may approve 
     for participation in the demonstration program under this 
     title only jurisdictions served by public housing agencies 
     that--
       ``(A) are not designated as high-performing agencies, 
     pursuant to their most recent scores under the public housing 
     management assessment program under section 6(j)(2) (or any 
     successor assessment program for public housing agencies), as 
     of the time of approval; and
       ``(B) have a most recent score under the public housing 
     management assessment program under section 6(j)(2) (or any 
     successor assessment program for public housing agencies), as 
     of the time of approval, that is among the lowest 40 percent 
     of the scores of all agencies.
       ``(3) Limitation on troubled and non-troubled phas.--Of the 
     jurisdictions approved by the Secretary for participation in 
     the demonstration program under this title--
       ``(A) not more than 55 may be jurisdictions served by a 
     public housing agency that, at the time of approval, is 
     designated as a troubled agency under the public housing 
     management assessment program under section 6(j)(2) (or any 
     successor assessment program for public housing agencies); 
     and
       ``(B) not more than 45 may be jurisdictions served by a 
     public housing agency that, at the time of approval, is not 
     designated as a troubled agency under the public housing 
     management assessment program under section 6(j)(2) (or any 
     successor assessment program for public housing agencies).
       ``(4) Exception.--If the City of Indianapolis, Indiana 
     submits an application for participation in the program under 
     this title and, upon review of the application under section 
     406(b), the Secretary determines that such application is 
     approvable under this title, the Secretary shall approve such 
     application, notwithstanding the second sentence of section 
     406(b)(2). Such City shall count for purposes of the 
     numerical limitations on jurisdictions under paragraphs (1) 
     and (3) of section 402(c), but the provisions of section 
     402(c)(2) (relating to exclusion of high-performing agencies) 
     shall not apply to such City.

     ``SEC. 403. PROGRAM ALLOCATION AND COVERED HOUSING 
                   ASSISTANCE.

       ``(a) Program Allocation.--In each fiscal year, the amount 
     made available to each participating jurisdiction under the 
     demonstration program under this title shall be equal to the 
     sum of the amounts of covered housing assistance that would 
     otherwise be made available under the provisions of this Act 
     to the public housing agency for the jurisdiction.
       ``(b) Covered Housing Assistance.--For purposes of this 
     title, the term `covered housing assistance' means--
       ``(1) operating assistance under section 9 (as in effect 
     before the effective date under section 503(a) of the Quality 
     Housing and Work Responsibility Act of 1998);
       ``(2) modernization assistance under section 14 (as in 
     effect before the effective date under section 503(a) of the 
     Quality Housing and Work Responsibility Act of 1998);
       ``(3) assistance for the certificate and voucher programs 
     under section 8 (as in effect before the effective date under 
     section 503(a) of the Quality Housing and Work Responsibility 
     Act of 1998);
       ``(4) assistance from the Operating Fund under section 
     9(e);
       ``(5) assistance from the Capital Fund under section 9(d); 
     and
       ``(6) tenant-based assistance under section 8 (as amended 
     by the Quality Housing and Work Responsibility Act of 1998).

     ``SEC. 404. APPLICABILITY OF REQUIREMENTS UNDER PROGRAMS FOR 
                   COVERED HOUSING ASSISTANCE.

       ``(a) In General.--In each fiscal year of the demonstration 
     program under this title, amounts made available to a 
     participating jurisdiction under the demonstration program 
     shall be subject to the same terms and conditions as such 
     amounts would be subject to if made available under the 
     provisions of this Act pursuant to which covered housing 
     assistance is otherwise made available under this Act to the 
     public housing agency for the jurisdiction, except that--
       ``(1) the Secretary may waive any such term or condition 
     identified by the jurisdiction to the extent that the 
     Secretary determines such action to be appropriate to carry 
     out the purposes of the demonstration program under this 
     title; and
       ``(2) the participating jurisdiction may combine the 
     amounts made available and use the amounts for any activity 
     eligible under the programs under sections 8 and 9.
       ``(b) Number of Families Assisted.--In carrying out the 
     demonstration program under this title, each participating 
     jurisdiction shall assist substantially the same total number 
     of eligible low-income families as would have otherwise been 
     served by the public housing agency for the jurisdiction had 
     the jurisdiction not participated in the demonstration 
     program under this title.
       ``(c) Protection of Recipients.--This title may not be 
     construed to authorize the termination of assistance to any 
     recipient receiving assistance under this Act before the date 
     of enactment of this title as a result of the implementation 
     of the demonstration program under this title.
       ``(d) Effect on Ability To Compete for Other Programs.--
     This title may not be construed to affect the ability of any 
     applying or participating jurisdiction (or a public housing 
     agency for any such jurisdiction) to compete or otherwise 
     apply for or receive assistance under any other housing 
     assistance program administered by the Secretary.

     ``SEC. 405. PROGRAM REQUIREMENTS.

       ``(a) Applicability of Certain Provisions.--Notwithstanding 
     section 404(a)(1), the Secretary may not waive, with respect 
     to any participating jurisdiction, any of the following 
     provisions:
       ``(1) The first sentence of paragraph (1) of section 3(a) 
     (relating to eligibility of low-income families).
       ``(2) Section 16 (relating to income eligibility and 
     targeting of assistance).
       ``(3) Paragraph (2) of section 3(a) (relating to rental 
     payments for public housing families).
       ``(4) Paragraphs (2) and (3) of section 8(o) (to the extent 
     such paragraphs limit the amount of rent paid by families 
     assisted with tenant-based assistance).
       ``(5) Section 18 (relating to demolition or disposition of 
     public housing).
       ``(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 
     406(a)(2).

     ``SEC. 406. APPLICATION.

       ``(a) In General.--The Secretary shall provide for 
     jurisdictions to submit applications for approval to 
     participate in the demonstration program under this title. 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 for the provision of housing 
     assistance with amounts received pursuant to this title 
     that--
       ``(A) is developed by the jurisdiction;
       ``(B) takes into consideration comments from the public 
     hearing, any other public comments on the proposed program, 
     and comments from current and prospective residents who would 
     be affected; and
       ``(C) identifies each term or condition for which the 
     jurisdiction is requesting waiver under section 404 (a)(1);
       ``(3) shall describe how the plan for use of amounts will 
     assist in meeting the purposes of, and be used in accordance 
     with, sections 401 and 402(a), respectively;
       ``(4) shall propose standards for measuring performance in 
     using assistance provided pursuant to this title based on the 
     performance standards under subsection (b)(4);
       ``(5) shall propose the length of the period for 
     participation of the jurisdiction is in the demonstration 
     program under this title;
       ``(6) 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 
     409(1)(B)), include the signed consent of the appropriate 
     executive officials of each unit included in the consortia;
       ``(7) 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), including a demonstration 
     that the applicant has a history of effectively administering 
     amounts provided under other programs of the Department of 
     Housing and Urban Development, such as the community 
     development block grant program, the HOME investment 
     partnerships program, and the programs for assistance for the 
     homeless under the Stewart B. McKinney Homeless Assistance 
     Act;
       ``(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

[[Page H9402]]

     from other funds available to the jurisdiction and will be 
     used only to carry out the plan;
       ``(8) 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;
       ``(9) shall--
       ``(A) clearly identify any State or local laws that will 
     affect implementation of the plan under paragraph (2) and any 
     contractual rights and property interests that may be 
     affected by the plan;
       ``(B) describe how the plan will be carried out with 
     respect to such laws, rights, and interests; and
       ``(C) contain a legal memorandum sufficient to describe how 
     the plan will comply with such laws and how the plan will be 
     carried out without violating or impairing such rights and 
     interests; and
       ``(10) shall identify procedures for how the jurisdiction 
     shall return to providing covered assistance for the 
     jurisdiction under the provisions of title I, in the case of 
     determination under subsection (b)(4)(B).

     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 each application 
     for participation in the demonstration program under this 
     title and shall determine and notify the jurisdiction 
     submitting the application, not later than 90 days after its 
     submission, of whether the application is approvable under 
     this title. If the Secretary determines that the application 
     of a jurisdiction is approvable under this title, the 
     Secretary shall provide affected public housing agencies an 
     opportunity to review and to provide written comments on the 
     application for a period of not less than 30 days after 
     notification under the preceding sentence. If the Secretary 
     determines that an application is not approvable under this 
     title, the Secretary shall notify the jurisdiction submitting 
     the application of the reasons for such determination. Upon 
     making a determination of whether an application is 
     approvable or nonapprovable under this title, the Secretary 
     shall make such determination publicly available in writing 
     together with a written statement of the reasons for such 
     determination.
       ``(2) Approval.--The Secretary may approve jurisdictions 
     for participation in the demonstration program under this 
     title, but only from among applications that the Secretary 
     has determined under paragraph are approvable under this 
     title and only in accordance with section 402(c). The 
     Secretary shall base the selection of jurisdictions to 
     approve on the potential success, as evidenced by the 
     application, in--
       ``(A) achieving the goals set forth in the performance 
     standards under paragraph (4)(A); and
       ``(B) increasing housing choices for low-income families.
       ``(3) Agreement.--The Secretary shall offer to enter into 
     an agreement with each jurisdiction approved for 
     participation in the program under this title providing for 
     assistance pursuant to this title for a period in accordance 
     with section 402(b) 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 (4)(A) of this subsection. If the 
     Secretary and the jurisdiction enter into an agreement, the 
     Secretary shall provide any covered housing assistance for 
     the jurisdiction in the manner authorized under this title. 
     The Secretary may not provide covered housing assistance for 
     a jurisdiction in the manner authorized under this title 
     unless the Secretary and jurisdiction enter into an agreement 
     under this paragraph.
       ``(4) Performance standards.--
       ``(A) Establishment.--The Secretary and each participating 
     jurisdiction may collectively establish standards for 
     evaluating the performance of the participating jurisdiction 
     in meeting the purposes under section 401 of this title, 
     which may include standards for--
       ``(i) moving dependent low-income families to economic 
     self-sufficiency;
       ``(ii) reducing the per-family cost of providing housing 
     assistance;
       ``(iii) expanding the stock of affordable housing and 
     housing choices for low-income families;
       ``(iv) improving program management;
       ``(v) increasing the number of homeownership opportunities 
     for low-income families;
       ``(vi) reducing homelessness through providing permanent 
     housing resources;
       ``(vii) reducing geographic concentration of assisted 
     families; and
       ``(viii) any other performance goals that the Secretary and 
     the participating jurisdiction may establish.
       ``(B) Failure to comply.--If, at any time during the 
     participation of a jurisdiction in the program under this 
     title, the Secretary determines that the jurisdiction is not 
     sufficiently meeting, or making progress toward meeting, the 
     levels of performance incorporated into the agreement of the 
     jurisdiction pursuant to subparagraph (A), the Secretary 
     shall terminate the participation of the jurisdiction in the 
     program under this title and require the implementation of 
     the procedures included in the application of the 
     jurisdiction pursuant to subsection (a)(10).
       ``(5) Troubled agencies.--The Secretary may establish 
     requirements for the approval of applications under this 
     section submitted by public housing agencies designated under 
     section 6(j)(2) as troubled, which may include additional or 
     different criteria determined by the Secretary to be more 
     appropriate for such agencies.
       ``(c) Status of PHAs.--This title may not 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.
       ``(d) PHA Plans.--In carrying out this title, the Secretary 
     may provide for a streamlined public housing agency plan and 
     planning process under section 5A for participating 
     jurisdictions.

     ``SEC. 407. TRAINING.

       ``The Secretary, in consultation with representatives of 
     public and assisted housing interests, may provide training 
     and technical assistance relating to providing assistance 
     under this title and may 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. 408. ACCOUNTABILITY.

       ``(a) Maintenance of Records.--Each participating 
     jurisdiction shall maintain such records as the Secretary may 
     require to--
       ``(1) document the amounts received by the jurisdiction 
     under this Act and the disposition of such amounts under the 
     demonstration program under this title;
       ``(2) ensure compliance by the jurisdiction with this 
     title; and
       ``(3) evaluate the performance of the jurisdiction under 
     the demonstration program under this title.
       ``(b) Reports.--Each participating jurisdiction shall 
     annually submit to the Secretary a report in a form and at a 
     time specified by the Secretary, which shall include--
       ``(1) documentation of the use of amounts made available to 
     the jurisdiction under this title;
       ``(2) any information as the Secretary may request to 
     assist the Secretary in evaluating the demonstration program 
     under this title; and
       ``(3) a description and analysis of the effect of assisted 
     activities in addressing the objectives of the demonstration 
     program under this title.
       ``(c) Access To Documents By Secretary and Comptroller 
     General.--The Secretary and the Comptroller General of the 
     United States, or any duly authorized representative of the 
     Secretary or the Comptroller General, shall have access for 
     the purpose of audit and examination to any books, documents, 
     papers, and records maintained by a participating 
     jurisdiction that relate to the demonstration program under 
     this title.
       ``(d) Performance Review and Evaluation.--
       ``(1) Performance review.--Based on the performance 
     standards established under section 406(b)(4), the Secretary 
     shall monitor the performance of participating jurisdictions 
     in providing assistance under this title.
       ``(2) Status report.--Not later than 60 days after the 
     conclusion of the second year of the demonstration program 
     under this title, the Secretary shall submit to Congress an 
     interim report on the status of the demonstration program and 
     the progress each participating jurisdiction in achieving the 
     purposes of the demonstration program under section 401.

     ``SEC. 409. 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 
     an agreement is made, a jurisdiction that has entered into an 
     agreement under section 406(b)(3) to receive assistance 
     pursuant to this title for such fiscal year.

     ``SEC. 410. TERMINATION AND EVALUATION.

       ``(a) Termination.--The demonstration program under this 
     title shall terminate not less than 2 and not more than 5 
     years after the date on which the demonstration program is 
     commenced.
       ``(b) Evaluation.--Not later than 6 months after the 
     termination of the demonstration program under this title, 
     the Secretary shall submit to the Congress a final report, 
     which shall include--
       ``(1) an evaluation the effectiveness of the activities 
     carried out under the demonstration program; and
       ``(2) any findings and recommendations of the Secretary for 
     any appropriate legislative action.

     ``SEC. 411. APPLICABILITY.

       ``This title shall take effect on the date of the enactment 
     of the Quality Housing and Work Responsibility Act of 
     1998.''.
  Subtitle E--Accountability and Oversight of Public Housing Agencies

     SEC. 563. STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUBLIC 
                   HOUSING AGENCIES.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall provide under subsection (e) 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.
       (b) Purposes.--The purposes of the study under this section 
     shall be--

[[Page H9403]]

       (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 and to evaluate whether such activities 
     should be eliminated, expanded, modified, or transferred to 
     other entities (including governmental and private entities) 
     to increase accuracy and effectiveness and improve 
     monitoring.
       (c) Evaluation of Various Performance Evaluation Systems.--
     To carry out the purposes under subsection (b), the study 
     under this section shall identify, and analyze the advantages 
     and disadvantages of various methods of regulating and 
     evaluating the performance of public housing agencies and 
     other providers of federally assisted housing, including the 
     following methods:
       (1) Current system.--The system pursuant to the United 
     States Housing Act of 1937, 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 section 6(j) of the United 
     States Housing Act of 1937.
       (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 and housing providers.
       (C) The study shall evaluate the feasibility and merit 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 estimate the costs involved in 
     developing and maintaining such an independent accreditation 
     program.
       (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.
       (d) Consultation.--The entity that, pursuant to subsection 
     (e), carries out the study under this section shall, in 
     carrying out the study, consult with individuals and 
     organizations experienced in managing public housing, private 
     real estate managers, representatives from State and local 
     governments, residents of public housing, families and 
     individuals receiving 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.
       (e) Contract to Conduct Study.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall enter into a contract, within 90 days of the enactment 
     of this Act, with a public or nonprofit private entity to 
     conduct the study under this section, using amounts made 
     available pursuant to subsection (g).
       (2) National academy of public administration.--The 
     Secretary shall request the National Academy of Public 
     Administration to enter into the contract under paragraph (1) 
     to conduct the study under this section. If such Academy 
     declines to conduct the study, the Secretary shall carry out 
     such paragraph through other public or nonprofit private 
     entities, selected through a competitive process.
       (f) Report.--
       (1) Interim report.--The Secretary shall ensure that, not 
     later than the expiration of the 6-month period beginning on 
     the date of the execution of the contract under subsection 
     (e)(1), the entity conducting the study under this section 
     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.
       (2) Final report.--The Secretary shall ensure that--
       (A) not later than the expiration of the 12-month period 
     beginning on the date of the execution of the contract under 
     subsection (e)(1), the study required under this section is 
     completed and a report describing the findings and 
     recommendations as a result of the study is submitted to the 
     Congress; and
       (B) before submitting the report under this paragraph to 
     the Congress, the report is submitted to the Secretary, 
     national organizations for public housing agencies, and other 
     appropriate national organizations 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 subparagraph (A).
       (g) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 564. PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM.

       Section 6(j) of the United States Housing Act of 1937 (42 
     U.S.C. 1437d(j)), as amended by the preceding provisions of 
     this Act, is further amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) The amount and percentage of funds provided to the 
     public housing agency from the Capital Fund under section 
     9(d) which remain unobligated by the public housing agency 
     after 3 years.'';
       (B) in subparagraph (D), by striking ``energy'' and 
     inserting ``utility'';
       (C) by transferring and inserting subparagraph (E) after 
     subparagraph (D);
       (D) by redesignating subparagraph (H) as subparagraph (K); 
     and
       (E) by inserting after subparagraph (G) the following new 
     subparagraphs:
       ``(H) The extent to which the public housing agency--
       ``(i) coordinates, promotes, or provides effective programs 
     and activities to promote the economic self-sufficiency of 
     public housing residents; and
       ``(ii) provides public housing residents with opportunities 
     for involvement in the administration of the public housing.
       ``(I) The extent to which the public housing agency--
       ``(i) implements effective screening and eviction policies 
     and other anticrime strategies; and
       ``(ii) coordinates with local government officials and 
     residents in the project and implementation of such 
     strategies.
       ``(J) The extent to which the public housing agency is 
     providing acceptable basic housing conditions.'';
       (2) in paragraph (2)--
       (A) in subparagraph (A)(i)--
       (i) by inserting after the first sentence the following: 
     ``Such procedures shall provide that an agency that fails on 
     a widespread basis to provide acceptable basic housing 
     conditions for its residents shall be designated as a 
     troubled public housing agency. The Secretary may use a 
     simplified set of indicators for public housing agencies with 
     less than 250 public housing units.''; and
       (ii) by striking ``under section 14'' and inserting ``for 
     assistance from the Capital Fund under section 9(d);
       (B) in subparagraph (A)(iii), by striking ``under section 
     14'' and inserting``for assistance from the Capital Fund 
     under section 9(d)'';
       (C) in subparagraph (B)(i)--
       (i) by inserting ``with more than 250 units'' after 
     ``public housing agency''; and
       (ii) by striking ``review conducted under section 14(p)'' 
     and inserting ``comparable and recent review''; and
       (D) in the first sentence of subparagraph (C), by inserting 
     ``(if applicable)'' after ``subparagraph (B)'';
       (3) in paragraph (5)(F), as so redesignated by the 
     preceding provisions of this Act, by striking ``program under 
     section 14'' and all that follows and inserting ``program for 
     assistance from the Capital Fund under section 9(d) and 
     specifies the amount of assistance the agency received under 
     such program.''; and
       (4) by adding at the end the following new paragraphs:
       ``(6)(A) To the extent that the Secretary determines such 
     action to be necessary in order to ensure the accuracy of any 
     certification made under this section, the Secretary shall 
     require an independent auditor to review documentation or 
     other information maintained by a public housing agency 
     pursuant to this section to substantiate each certification 
     submitted by the agency or corporation relating to the 
     performance of that agency or corporation.
       ``(B) The Secretary may withhold, from assistance otherwise 
     payable to the agency or corporation under section 9, amounts 
     sufficient to pay for the reasonable costs of any review 
     under this paragraph.
       ``(7) The Secretary shall apply the provisions of this 
     subsection to resident management corporations in the same 
     manner as applied to public housing agencies.''.

     SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING 
                   AGENCIES IN SUBSTANTIAL DEFAULT.

       (a) In General.--Section 6(j)(3) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(j)(3)) is amended--
       (1) in subparagraph (A)--
       (A) by striking clause (i) and inserting the following new 
     clause:
       ``(i) solicit competitive proposals from other public 
     housing agencies and private housing management agents which 
     (I) in the discretion of the Secretary, may be selected by 
     existing public housing residents through administrative 
     procedures established by the Secretary, and (II) if 
     appropriate, shall 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 programs of the agency;'';
       (B) in clause (iii), by striking ``under section 14'' and 
     inserting ``from the Capital Fund under section 9(d)''; and
       (C) by striking clause (iv) and inserting the following new 
     clauses:

[[Page H9404]]

       ``(iv) take possession of all or part of the public housing 
     agency, including all or part of any project or program of 
     the agency, including any project or program under any other 
     provision of this title; and
       ``(v) require the agency to make other arrangements 
     acceptable to the Secretary and in the best interests of the 
     public housing residents and families assisted under section 
     8 for managing all, or part, of the public housing 
     administered by the agency or of the programs of the 
     agency.''; and
       (2) by striking subparagraphs (B) through (D) and inserting 
     the following new subparagraphs:
       ``(B)(i) If a public housing agency is identified as 
     troubled under this subsection, the Secretary shall notify 
     the agency of the troubled status of the agency.
       ``(ii)(I) Upon the expiration of the 1-year period 
     beginning on the later of the date on which the agency 
     receives initial notice from the Secretary of the troubled 
     status of the agency under clause (i) and the date of the 
     enactment of the Quality Housing and Work Responsibility Act 
     of 1998, the agency shall improve its performance, as 
     measured by the performance indicators established pursuant 
     to paragraph (1), by at least 50 percent of the difference 
     between the most recent performance measurement and the 
     measurement necessary to remove that agency's designation as 
     troubled.
       ``(II) Upon the expiration of the 2-year period beginning 
     on the later of the date on which the agency receives initial 
     notice from the Secretary of the troubled status of the 
     agency under clause (i) and the date of the enactment of the 
     Quality Housing and Work Responsibility Act of 1998, the 
     agency shall improve its performance, as measured by the 
     performance indicators established pursuant to paragraph (1), 
     such that the agency is no longer designated as troubled.
       ``(III) In the event that a public housing agency 
     designated as troubled under this subsection fails to comply 
     with the requirements set forth in subclause (I) or (II), the 
     Secretary shall--
       ``(aa) in the case of a troubled public housing agency with 
     1,250 or more units, petition for the appointment of a 
     receiver pursuant to subparagraph (A)(ii); or
       ``(bb) in the case of a troubled public housing agency with 
     fewer than 1,250 units, either petition for the appointment 
     of a receiver pursuant to subparagraph (A)(ii), or take 
     possession of the public housing agency (including all or 
     part of any project or program of the agency) pursuant to 
     subparagraph (A)(iv) and appoint, on a competitive or 
     noncompetitive basis, an individual or entity as an 
     administrative receiver to assume the responsibilities of the 
     Secretary for the administration of all or part of the public 
     housing agency (including all or part of any project or 
     program of the agency).
     This subparagraph shall not be construed to limit the courses 
     of action available to the Secretary under subparagraph (A).
       ``(IV) During the period between the date on which a 
     petition is filed under subclause (III)(aa) and the date on 
     which a receiver assumes responsibility for the management of 
     the public housing agency under such subclause, the Secretary 
     may take possession of the public housing agency (including 
     all or part of any project or program of the agency) pursuant 
     to subparagraph (A)(iv) and may appoint, on a competitive or 
     noncompetitive basis, an individual or entity as an 
     administrative receiver to assume the responsibilities of the 
     Secretary for the administration of all or part of the public 
     housing agency (including all or part of any project or 
     program of the agency).
       ``(C) If a receiver is appointed pursuant to subparagraph 
     (A)(ii), in addition to the powers accorded by the court 
     appointing the receiver, the receiver--
       ``(i) may abrogate any contract to which the United States 
     or an agency of the United States is not a party that, in the 
     receiver's written determination (which shall include the 
     basis for such determination), substantially impedes 
     correction of the substantial default, but only after the 
     receiver determines that reasonable efforts to renegotiate 
     such contract have failed;
       ``(ii) may demolish and dispose of all or part of the 
     assets of the public housing agency (including all or part of 
     any project of the agency) in accordance with section 18, 
     including disposition by transfer of properties to resident-
     supported nonprofit entities;
       ``(iii) if determined to be appropriate by the Secretary, 
     may seek the establishment, as permitted by applicable State 
     and local law, of 1 or more new public housing agencies;
       ``(iv) if determined to be appropriate by the Secretary, 
     may seek consolidation of all or part of the agency 
     (including all or part of any project or program of the 
     agency), as permitted by applicable State and local laws, 
     into other well-managed public housing agencies with the 
     consent of such well-managed agencies; and
       ``(v) shall not be required to comply with any State or 
     local law relating to civil service requirements, employee 
     rights (except civil rights), procurement, or financial or 
     administrative controls that, in the receiver's written 
     determination (which shall include the basis for such 
     determination), substantially impedes correction of the 
     substantial default.
       ``(D)(i) If, pursuant to subparagraph (A)(iv), the 
     Secretary takes possession of all or part of the public 
     housing agency, including all or part of any project or 
     program of the agency, the Secretary--
       ``(I) may abrogate any contract to which the United States 
     or an agency of the United States is not a party that, in the 
     written determination of the Secretary (which shall include 
     the basis for such determination), substantially impedes 
     correction of the substantial default, but only after the 
     Secretary determines that reasonable efforts to renegotiate 
     such contract have failed;
       ``(II) may demolish and dispose of all or part of the 
     assets of the public housing agency (including all or part of 
     any project of the agency) in accordance with section 18, 
     including disposition by transfer of properties to resident-
     supported nonprofit entities;
       ``(III) may seek the establishment, as permitted by 
     applicable State and local law, of 1 or more new public 
     housing agencies;
       ``(IV) may seek consolidation of all or part of the agency 
     (including all or part of any project or program of the 
     agency), as permitted by applicable State and local laws, 
     into other well-managed public housing agencies with the 
     consent of such well-managed agencies;
       ``(V) shall not be required to comply with any State or 
     local law relating to civil service requirements, employee 
     rights (except civil rights), procurement, or financial or 
     administrative controls that, in the Secretary's written 
     determination (which shall include the basis for such 
     determination), substantially impedes correction of the 
     substantial default; and
       ``(VI) shall, without any action by a district court of the 
     United States, have such additional authority as a district 
     court of the United States would have the authority to confer 
     upon a receiver to achieve the purposes of the receivership.
       ``(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the 
     Secretary appoints an administrative receiver to assume the 
     responsibilities of the Secretary for the administration of 
     all or part of the public housing agency (including all or 
     part of any project or program of the agency), the Secretary 
     may delegate to the administrative receiver any or all of the 
     powers given the Secretary by this subparagraph, as the 
     Secretary determines to be appropriate and subject to clause 
     (iii).
       ``(iii) An administrative receiver may not take an action 
     described in subclause (III) or (IV) of clause (i) unless the 
     Secretary first approves an application by the administrative 
     receiver to authorize such action.
       ``(E) The Secretary may make available to receivers and 
     other entities selected or appointed pursuant to this 
     paragraph such assistance as the Secretary determines in the 
     discretion of the Secretary is necessary and available to 
     remedy the substantial deterioration of living conditions in 
     individual public housing projects or other related 
     emergencies that endanger the health, safety, and welfare of 
     public housing residents or families assisted under section 
     8. A decision made by the Secretary under this paragraph 
     shall not be subject to review in any court of the United 
     States, or in any court of any State, territory, or 
     possession of the United States.
       ``(F) In any proceeding under subparagraph (A)(ii), 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 
     all or part of the public housing agency in a manner 
     consistent with this Act and in accordance with such further 
     terms and conditions as the court may provide. The receiver 
     appointed may be another public housing agency, a private 
     management corporation, or any other person or appropriate 
     entity. The court shall have power to grant appropriate 
     temporary or preliminary relief pending final disposition of 
     the petition by the Secretary.
       ``(G) The appointment of a receiver pursuant to this 
     paragraph may be terminated, upon the petition of any party, 
     when the court determines that all defaults have been cured 
     or the public housing agency is capable again of discharging 
     its duties.
       ``(H) If the Secretary (or an administrative receiver 
     appointed by the Secretary) takes possession of a public 
     housing agency (including all or part of any project or 
     program of the agency), or if a receiver is appointed by a 
     court, the Secretary or receiver shall be deemed to be acting 
     not in the official capacity of that person or entity, but 
     rather in the capacity of the public housing agency, and any 
     liability incurred, regardless of whether the incident giving 
     rise to that liability occurred while the Secretary or 
     receiver was in possession of all or part of the public 
     housing agency (including all or part of any project or 
     program of the agency), shall be the liability of the public 
     housing agency.''.
       (b) Applicability.--The provisions of, and duties and 
     authorities conferred or confirmed by, the amendments made by 
     subsection (a) shall apply with respect to any action taken 
     before, on, or after the effective date of this Act and shall 
     apply to any receiver appointed for a public housing agency 
     before the date of enactment of this Act.
       (c) Technical Correction Regarding Applicability to Section 
     8.--Section 8(h) of the United States Housing Act of 1937 is 
     amended by inserting ``(except as provided in section 
     6(j)(3))'' after ``section 6''.
       (d) Implementation.--The Secretary may administer the 
     amendments made by subsection (a) as necessary to ensure the 
     efficient and effective initial implementation of this 
     section.
       (e) Applicability.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 566. AUDITS.

       Section 5 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d), as amended by the preceding provisions of this 
     Act, is further amended by inserting after subsection (g) the 
     following new subsection:
       ``(h) Audits.--
       ``(1) By secretary and comptroller general.--Each contract 
     for contributions for any assistance under this Act to a 
     public housing agency 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

[[Page H9405]]

     to any books, documents, papers, and records of the public 
     housing agency that are pertinent to this Act and to its 
     operations with respect to financial assistance under the 
     this Act.
       ``(2) Withholding of amounts for audits under single audit 
     act.--The Secretary may, in the sole discretion of the 
     Secretary, arrange for and pay the costs of an audit required 
     under chapter 75 of title 31, United States Code. In such 
     circumstances, the Secretary may withhold, from assistance 
     otherwise payable to the agency under this Act, 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. As agreed to by the 
     Secretary and the Inspector General, the Inspector General 
     may arrange for an audit under this paragraph.''.

     SEC. 567. 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 made available for 
     technical assistance under section 9(h) of the United States 
     Housing Act of 1937 (as amended by this Act).
       (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 projects 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 advisory 
     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 project, the 
     revitalization of the St. Thomas Homes project, 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 in a manner sufficient 
     that the Authority should be allowed to continue to operate 
     as the manager of the public housing of the Authority, the 
     Secretary shall (notwithstanding the conditions required 
     under section 6(j)(3)(A) of the United States Housing Act of 
     1937 for action under such section) petition under clause 
     (ii) of section 6(j)(3)(A) for the appointment of a receiver 
     for the Housing Authority, which receivership shall be 
     subject to the provisions of such section.
       (g) Regular Remedies.--Nothing in this section, or in the 
     cooperative endeavor agreement in effect between the 
     Secretary and the Housing Authority, may be construed to 
     prevent the Secretary from taking any action with respect to 
     the Housing Authority, in accordance with such section 
     6(j)(3) of the United States Housing Act of 1937 (42 U.S.C. 
     1437d(j)(3)), as amended by this Act, that is authorized 
     under section.
       (f) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 568. TREATMENT OF TROUBLED PHA'S.

       Section 105 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705) is amended by adding at the end 
     the following new subsection:
       ``(g) Treatment of Troubled Public Housing Agencies.--
       ``(1) 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 this section unless such plan includes a 
     description of the manner in which the State or unit will 
     provide financial or other assistance to such troubled agency 
     in improving its operations to remove such designation.
       ``(2) Definition.--For purposes of this subsection, the 
     term `troubled public housing agency' means a public housing 
     agency that, upon the effective date of the Quality Housing 
     and Work Responsibility Act of 1998, is designated under 
     section 6(j)(2) of the United States Housing Act of 1937 as a 
     troubled public housing agency.''.
     Subtitle F--Safety and Security in Public and Assisted Housing

     SEC. 575. PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND 
                   SECTION 8 ASSISTANCE.

       (a) Drug-Related and Criminal Activity Under Public Housing 
     Grievance Procedure.--Section 6(k) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(k)) is amended, in the 
     matter following paragraph (6)--
       (1) by inserting ``violent or'' before ``drug-related''; 
     and
       (2) by inserting ``or any activity resulting in a felony 
     conviction,'' after ``on or off such premises,''.
       (b) Termination of Tenancy in Public Housing.--Section 6(l) 
     of the United States Housing Act of 1937 (42 U.S.C. 1437d(l)) 
     is amended--
       (1) in paragraph (4) (as so redesignated by the preceding 
     provisions of this Act)--
       (A) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) a reasonable period of time, but not to exceed 30 
     days--
       ``(i) if the health or safety of other tenants, public 
     housing agency employees, or persons residing in the 
     immediate vicinity of the premises is threatened; or
       ``(ii) in the event of any drug-related or violent criminal 
     activity or any felony conviction;''; and
       (B) in subparagraph (C), by inserting before the semicolon 
     at the end the following: ``, except that if a State or local 
     law provides for a shorter period of time, such shorter 
     period shall apply'';
       (2) in paragraph (7) (as so redesignated by the preceding 
     provisions of this Act), by striking ``and'' at the end;
       (4) by inserting after paragraph (7) (as so redesignated by 
     the preceding provisions of this Act), the following new 
     paragraph:
       ``(7) provide that any occupancy in violation of section 
     576(b) of the Quality Housing and Work Responsibility Act of 
     1998 (relating to ineligibility of illegal drug users and 
     alcohol abusers) or the furnishing of any false or misleading 
     information pursuant to section 577 of such Act (relating to 
     termination of tenancy and assistance for illegal drug users 
     and alcohol abusers) shall be cause for termination of 
     tenancy;''.
       (c) Availability of Criminal Records for Tenant Screening 
     and Eviction.--Section 6(q) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437d(q)(1)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by striking ``subparagraph (B)'' and inserting 
     ``subparagraph (C)''; and
       (ii) by striking ``public housing'' and inserting ``covered 
     housing assistance'';
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Requests by owners of project-based section 8 
     housing.--A public housing agency may make a request under 
     subparagraph (A) for information regarding applicants for, or 
     tenants of, housing that is provided project-based assistance 
     under section 8 only if the housing is located within the 
     jurisdiction of the agency and the owner of such housing has 
     requested that the agency obtain such information on behalf 
     of the owner. Upon such a request by the owner, the agency 
     shall make a request under subparagraph (A) for the 
     information. The agency may not make such information 
     available to the owner but shall perform determinations for 
     the owner regarding screening, lease enforcement, and 
     eviction based on criteria supplied by the owner.'';
       (2) in paragraph (3)--
       (A) by striking ``Fee'' and inserting ``Fees''; and
       (B) by adding at the end the following new sentence: ``In 
     the case of a public housing agency obtaining information 
     pursuant to paragraph (1)(B) for another owner of housing, 
     the agency may pass such fee on to the owner initiating the 
     request and may charge additional reasonable fees for making 
     the request on behalf of the owner and taking other actions 
     for owners under this subsection.'';
       (3) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(8) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Adult.--The term `adult' means a person who is 18 
     years of age or older, or who has been convicted of a crime 
     as an adult under any Federal, State, or tribal law.
       ``(B) Covered housing assistance.--The term `covered 
     housing assistance' means--
       ``(i) a dwelling unit in public housing;
       ``(ii) a dwelling unit in housing that is provided project-
     based assistance under section 8, including new construction 
     and substantial rehabilitation projects; and

[[Page H9406]]

       ``(iii) tenant-based assistance under section 8.
       ``(C) Owner.--The term `owner' means, with respect to 
     covered housing assistance described in subparagraph (B)(ii), 
     the entity or private person (including a cooperative or 
     public housing agency) that has the legal right to lease or 
     sublease dwelling units in the housing assisted.''; and
       (4) by inserting after paragraph (4) the following new 
     paragraphs:
       ``(5) Confidentiality.--A public housing agency receiving 
     information under this subsection may use such information 
     only for the purposes provided in this subsection and such 
     information may not be disclosed to any person who is not an 
     officer, employee, or authorized representative of the agency 
     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 subsection to a public housing agency is 
     used, and confidentiality of such information is maintained, 
     as required under this subsection. The Secretary shall 
     establish standards for confidentiality of information 
     obtained under this subsection by public housing agencies on 
     behalf of owners.
       ``(6) Penalty.--Any person who knowingly and willfully 
     requests or obtains any information concerning an applicant 
     for, or tenant of, covered housing assistance pursuant to the 
     authority under this subsection 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 paragraph include an officer, employee, or authorized 
     representative of any public housing agency.
       ``(7) Civil Action.--Any applicant for, or tenant of, 
     covered housing assistance affected by (A) a negligent or 
     knowing disclosure of information referred to in this 
     subsection about such person by an officer, employee, or 
     authorized representative of any public housing agency, which 
     disclosure is not authorized by this subsection, or (B) any 
     other negligent or knowing action that is inconsistent with 
     this subsection, may bring a civil action for damages and 
     such other relief as may be appropriate against any public 
     housing agency 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.''.
       (d) Authority To Require Access to Criminal Records.--
     Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
     1437d), as amended by the preceding provisions of this Act, 
     is further amended by adding at the end the following new 
     subsection:
       ``(t) Authority To Require Access to Criminal Records.--A 
     public housing agency may require, as a condition of 
     providing admission to the public housing program or assisted 
     housing program under the jurisdiction of the public housing 
     agency, that each adult member of the household provide a 
     signed, written authorization for the public housing agency 
     to obtain records described in subsection (q)(1) regarding 
     such member of the household from the National Crime 
     Information Center, police departments, and other law 
     enforcement agencies.''.
       (e) Obtaining Information From Drug Abuse Treatment 
     Facilities.--Section 6 of the United States Housing Act of 
     1937 (42 U.S.C. 1437d), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(u) Obtaining Information From Drug Abuse Treatment 
     Facilities.--
       ``(1) Authority.--Notwithstanding any other provision of 
     law other than the Public Health Service Act (42 U.S.C. 201 
     et seq.), a public housing agency may require each person who 
     applies for admission to public housing to sign one or more 
     forms of written consent authorizing the agency to receive 
     information from a drug abuse treatment facility that is 
     solely related to whether the applicant is currently engaging 
     in the illegal use of a controlled substance.
       ``(2) Confidentiality of applicant's records.--
       ``(A) Limitation on information requested.--In a form of 
     written consent, a public housing agency may request only 
     whether the drug abuse treatment facility has reasonable 
     cause to believe that the applicant is currently engaging in 
     the illegal use of a controlled substance.
       ``(B) Records management.--Each public housing agency that 
     receives information under this subsection from a drug abuse 
     treatment facility shall establish and implement a system of 
     records management that ensures that any information received 
     by the public housing agency under this subsection--
       ``(i) is maintained confidentially in accordance with 
     section 543 of the Public Health Service Act (12 U.S.C. 
     290dd-2);
       ``(ii) is not misused or improperly disseminated; and
       ``(iii) is destroyed, as applicable--

       ``(I) not later than 5 business days after the date on 
     which the public housing agency gives final approval for an 
     application for admission; or
       ``(II) if the public housing agency denies the application 
     for admission, in a timely manner after the date on which the 
     statute of limitations for the commencement of a civil action 
     from the applicant based upon that denial of admission has 
     expired.

       ``(C) Expiration of written consent.--In addition to the 
     requirements of subparagraph (B), an applicant's signed 
     written consent shall expire automatically after the public 
     housing agency has made a final decision to either approve or 
     deny the applicant's application for admittance to public 
     housing.
       ``(3) Prohibition of discriminatory treatment of 
     applicants.--
       ``(A) Forms signed.--A public housing agency may only 
     require an applicant for admission to public housing to sign 
     one or more forms of written consent under this subsection if 
     the public housing agency requires all such applicants to 
     sign the same form or forms of written consent.
       ``(B) Circumstances of inquiry.--A public housing agency 
     may only make an inquiry to a drug abuse treatment facility 
     under this subsection if--
       ``(i) the public housing agency makes the same inquiry with 
     respect to all applicants; or
       ``(ii) the public housing agency only makes the same 
     inquiry with respect to each and every applicant with respect 
     to whom--

       ``(I) the public housing agency receives information from 
     the criminal record of the applicant that indicates evidence 
     of a prior arrest or conviction; or
       ``(II) the public housing agency receives information from 
     the records of prior tenancy of the applicant that 
     demonstrates that the applicant--

       ``(aa) engaged in the destruction of property;
       ``(bb) engaged in violent activity against another person; 
     or
       ``(cc) interfered with the right of peaceful enjoyment of 
     the premises of another tenant.
       ``(4) Fee permitted.--A drug abuse treatment facility may 
     charge a public housing agency a reasonable fee for 
     information provided under this subsection.
       ``(5) Disclosure permitted by treatment facilities.--A drug 
     abuse treatment facility shall not be liable for damages 
     based on any information required to be disclosed pursuant to 
     this subsection if such disclosure is consistent with section 
     543 of the Public Health Service Act (42 U.S.C. 290dd-2).
       ``(6) Option to not request information.--A public housing 
     agency shall not be liable for damages based on its decision 
     not to require each person who applies for admission to 
     public housing to sign one or more forms of written consent 
     authorizing the public housing agency to receive information 
     from a drug abuse treatment facility under this subsection.
       ``(7) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Drug abuse treatment facility.--The term `drug abuse 
     treatment facility' means an entity that--
       ``(i) is--

       ``(I) an identified unit within a general medical care 
     facility; or
       ``(II) an entity other than a general medical care 
     facility; and

       ``(ii) holds itself out as providing, and provides, 
     diagnosis, treatment, or referral for treatment with respect 
     to the illegal use of a controlled substance.
       ``(B) Controlled substance.--The term `controlled 
     substance' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       ``(C) Currently engaging in the illegal use of a controlled 
     substance.--The term `currently engaging in the illegal use 
     of a controlled substance' means the illegal use of a 
     controlled substance that occurred recently enough to justify 
     a reasonable belief that an applicant's illegal use of a 
     controlled substance is current or that continuing illegal 
     use of a controlled substance by the applicant is a real and 
     ongoing problem.
       ``(8) Effective date.--This subsection shall take effect 
     upon enactment and without the necessity of guidance from, or 
     any regulation issued by, the Secretary.''.

     SEC. 576. SCREENING OF APPLICANTS FOR FEDERALLY ASSISTED 
                   HOUSING.

       (a) Ineligibility Because of Eviction for Drug Crimes.--Any 
     tenant evicted from federally assisted housing by reason of 
     drug-related criminal activity (as such term is defined in 
     section 3(b) of the United States Housing Act of 1937 (42 
     U.S.C. 1437a(b)) shall not be eligible for federally assisted 
     housing during the 3-year period beginning on the date of 
     such eviction, unless the evicted tenant successfully 
     completes a rehabilitation program approved by the public 
     housing agency (which shall include a waiver of this 
     subsection if the circumstances leading to eviction no longer 
     exist).
       (b) Ineligibility of Illegal Drug Users and Alcohol 
     Abusers.--
       (1) In general.--Notwithstanding any other provision of 
     law, a public housing agency or an owner of federally 
     assisted housing, 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 
     illegally using 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, may 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 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

[[Page H9407]]

     household member, a public housing agency or an owner may 
     consider whether such household member--
       (A) has successfully completed a supervised drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable);
       (B) has otherwise been rehabilitated successfully and is no 
     longer engaging in the illegal use of a controlled substance 
     or abuse of alcohol (as applicable); or
       (C) is participating in a supervised drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable).
       (c) Authority To Deny Admission To Criminal Offenders.--
     Except as provided in subsections (a) and (b) of this section 
     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 drug-related or violent criminal 
     activity or other criminal activity which would adversely 
     affect the health, safety, or right to peaceful enjoyment of 
     the premises by other residents, the owner, or public housing 
     agency employees, the public housing agency or owner may--
       (1) deny such applicant admission to the program or to 
     federally assisted housing; and
       (2) 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.
       (d) Conforming Amendments.--The United States Housing Act 
     of 1937 is amended--
       (1) in section 6--
       (A) by striking subsection (r); and
       (B) by redesignating subsections (s), (t), and (u) (as 
     added by the preceding provisions of this Act) as subsections 
     (r), (s), and (t), respectively; and
       (2) in section 16 (42 U.S.C. 1437n), by striking subsection 
     (e).

     SEC. 577. TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL 
                   DRUG USERS AND ALCOHOL ABUSERS IN FEDERALLY 
                   ASSISTED HOUSING.

       (a) In General.--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 
     illegally using a controlled substance; or
       (2) whose illegal use (or pattern of illegal use) of a 
     controlled substance, or whose abuse (or pattern of 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.
       (b) Consideration of Rehabilitation.--In determining 
     whether, pursuant to subsection (a)(2), to terminate tenancy 
     or assistance 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--
       (1) has successfully completed a supervised drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable);
       (2) 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
       (3) is participating in a supervised drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable).

     SEC. 578. INELIGIBILITY OF DANGEROUS SEX OFFENDERS FOR 
                   ADMISSION TO PUBLIC HOUSING.

       (a) In General.--Notwithstanding any other provision of 
     law, an owner of federally assisted housing shall prohibit 
     admission to such housing for any household that includes any 
     individual who is subject to a lifetime registration 
     requirement under a State sex offender registration program.
       (b) Obtaining information.--As provided in regulations 
     issued by the Secretary to carry out this section--
       (1) a public housing agency shall carry out criminal 
     history background checks on applicants for federally 
     assisted housing and make further inquiry with State and 
     local agencies as necessary to determine whether an applicant 
     for federally assisted housing is subject to a lifetime 
     registration requirement under a State sex offender 
     registration program; and
       (2) State and local agencies responsible for the collection 
     or maintenance of criminal history record information or 
     information on persons required to register as sex offenders 
     shall comply with requests of public housing agencies for 
     information pursuant to this section.
       (c) Requests By Owners For PHA's To Obtain Information.--A 
     public housing agency may take any action under subsection 
     (b) regarding applicants for, or tenants of, federally 
     assisted housing other than federally assisted housing 
     described in subparagraph (A) or (B) of section 579(a)(2), 
     but only if the housing is located within the jurisdiction of 
     the agency and the owner of such housing has requested that 
     the agency take such action on behalf of the owner. Upon such 
     a request by the owner, the agency shall take the action 
     requested under subsection (b). The agency may not make any 
     information obtained pursuant to the action under subsection 
     (b) available to the owner but shall perform determinations 
     for the owner regarding screening, lease enforcement, and 
     eviction based on criteria supplied by the owner.
       (d) Opportunity To Dispute.--Before an adverse action is 
     taken with respect to an applicant for federally assisted 
     housing on the basis that an individual is subject to a 
     lifetime registration requirement under a State sex offender 
     registration program, the public housing agency obtaining the 
     record shall provide the tenant or applicant with a copy of 
     the registration information and an opportunity to dispute 
     the accuracy and relevance of that information.
       (e) Fee.--A public housing agency may be charged a 
     reasonable fee for taking actions under subsection (b). In 
     the case of a public housing agency taking actions on behalf 
     of another owner of federally assisted housing pursuant to 
     subsection (c), the agency may pass such fee on to the owner 
     making the request and may charge an additional reasonable 
     fee for making the request on behalf of the owner.
       (f) Records Management.--Each public housing agency shall 
     establish and implement a system of records management that 
     ensures that any criminal record or information regarding a 
     lifetime registration requirement under a State sex offender 
     registration program that is obtained under this section by 
     the public housing agency is--
       (1) maintained confidentially;
       (2) not misused or improperly disseminated; and
       (3) destroyed, once the purpose for which the record was 
     requested has been accomplished.

     SEC. 579. DEFINITIONS.

       (a) Definitions.--For purposes of this subtitle, the 
     following definitions shall apply:
       (1) Drug-related criminal activity.--The term ``drug-
     related criminal activity'' has the meaning given the term in 
     section 3(b) of the United States Housing Act of 1937 (42 
     U.S.C. 1437a(b)).
       (2) Federally assisted housing.--The term ``federally 
     assisted housing'' means a dwelling unit--
       (A) in public housing (as such term is defined in section 
     3(b) of the United States Housing Act of 1937 (42 U.S.C. 
     1437a));
       (B) assisted with tenant-based assistance under section 8 
     of the United States Housing Act of 1937;
       (C) in housing that is provided project-based assistance 
     under section 8 of the United States Housing Act of 1937, 
     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; or
       (I) in housing assisted under section 514 or 515 of the 
     Housing Act of 1949.
       (3) 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.
               Subtitle G--Repeals and Related Provisions

     SEC. 581. ANNUAL REPORT.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary shall submit a report to the Congress on--
       (1) the impact of the amendments made by this Act on--
       (A) the demographics of public housing residents and 
     families receiving tenant-based assistance under the United 
     States Housing Act of 1937; and
       (B) the economic viability of public housing agencies; and
       (2) the effectiveness of the rent policies established by 
     this Act and the amendments made by this Act on the 
     employment status and earned income of public housing 
     residents.
       (b) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 582. REPEALS RELATING TO PUBLIC HOUSING AND SECTION 8 
                   PROGRAMS.

       (a) In General.--The following provisions of law are hereby 
     repealed:
       (1) Public housing rent waivers for police.--Section 519 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437a-1).
       (2) 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).
       (3) Report regarding fair housing objectives.--Section 153 
     of the Housing and Community Development Act of 1992 (42 
     U.S.C. 1437f note).

[[Page H9408]]

       (4) Miscellaneous provisions.--Subsections (b)(1) and (c) 
     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).
       (5) Payment for development managers.--Section 329A of the 
     Housing and Community Development Amendments of 1981 (42 
     U.S.C. 1437j-1).
       (6) Public housing childhood development.--Section 222 of 
     the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note).
       (7) Indian housing childhood development.--Section 518 of 
     the Cranston-Gonzalez National Affordable Housing Act (12 
     U.S.C. 1701z-6 note).
       (8) Public housing comprehensive transition 
     demonstration.--Section 126 of the Housing and Community 
     Development Act of 1987 (42 U.S.C. 1437f note).
       (9) Public housing one-stop perinatal services 
     demonstration.--Section 521 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437t note).
       (10) Public housing mincs demonstration.--Section 522 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437f note).
       (11) Public housing energy efficiency demonstration.--
     Section 523 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437g note).
       (12) Omaha homeownership demonstration.--Section 132 of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3712).
       (13) Public and assisted housing youth sports programs.--
     Section 520 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11903a).
       (14) 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)).
       (15) Special projects for elderly or handicapped 
     families.--Section 209 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 1438).
       (b) Savings Provision.--Except to the extent otherwise 
     provided in this Act, the repeals made by subsection (a) 
     shall not affect any legally binding obligations entered into 
     before the effective date under section 503(a) of this Act.

     SEC. 583. PUBLIC HOUSING FLEXIBILITY IN CHAS.

       Section 105(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705(b)) is amended--
       (1) by transferring and inserting the flush material that 
     precedes the first paragraph that is designated as (17) 
     (relating to abbreviated housing strategies and consisting of 
     2 sentences) to the end of the subsection (following the last 
     numbered paragraph);
       (2) by redesignating the second paragraph that is 
     designated as paragraph (17) (as added by section 681(2) of 
     the Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3830)) as paragraph (20);
       (3) by redesignating paragraph (17) (as added by section 
     220(b)(3) of the Housing and Community Development Act of 
     1992 (Public Law 102-550; 106 Stat. 3761)) as paragraph (19);
       (4) in the second paragraph designated as paragraph (16) 
     (as so designated by section 220(c)(1) of the Housing and 
     Community Development Act of 1992 (Public Law 102-550; 106 
     Stat. 3762))--
       (A) by striking ``and'' at the end; and
       (B) by striking ``(16)'' and inserting ``(18)'';
       (5) in paragraph (16) (as added by section 1014(3) of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3908))--
       (A) by striking the period at the end and inserting a 
     semicolon; and
       (B) by striking ``(16)'' and inserting ``(17)'';
       (6) by redesignating paragraphs (11) through (15) as 
     paragraphs (12) through (16), respectively; and
       (7) by inserting after paragraph (10) the following new 
     paragraph:
       ``(11) describe the manner in which the plan of the 
     jurisdiction will help address the needs of public 
     housing;''.

     SEC. 584. USE OF AMERICAN PRODUCTS.

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

     SEC. 585. GAO STUDY ON HOUSING ASSISTANCE PROGRAM COSTS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study that provides an objective and 
     independent accounting and analysis of the full cost to the 
     Federal Government, public housing agencies, State and local 
     governments, and other entities, per assisted household, of 
     the Federal assisted housing programs, taking into account 
     the qualitative differences among Federal assisted housing 
     programs in accordance with applicable standards of the 
     Department of Housing and Urban Development.
       (b) Contents.--The study under this section shall--
       (1) analyze the full cost to the Federal Government, public 
     housing agencies, State and local governments, and other 
     parties, per assisted household, of the Federal assisted 
     housing programs, in accordance with generally accepted 
     accounting principles, and shall conduct the analysis on a 
     nationwide and regional basis and in a manner such that 
     accurate per unit cost comparisons may be made between 
     Federal assisted housing programs, including grants, direct 
     subsidies, tax concessions, Federal mortgage insurance 
     liability, periodic renovation and rehabilitation, and 
     modernization costs, demolition costs, and other ancillary 
     costs such as security; and
       (2) measure and evaluate qualitative differences among 
     Federal assisted housing programs in accordance with 
     applicable standards of the Department of Housing and Urban 
     Development.
       (c) Prohibition of Recommendations.--In conducting the 
     study under this section and reporting under subsection (e), 
     the Comptroller General may not make any recommendations 
     regarding Federal housing policy.
       (d) Federal Assisted Housing Programs.--For purposes of 
     this section, the term ``Federal assisted housing programs'' 
     means--
       (1) the public housing program under the United States 
     Housing Act of 1937, except that the study under this section 
     shall differentiate between and compare the development and 
     construction of new public housing and the assistance of 
     existing public housing structures;
       (2) the certificate program for rental assistance under 
     section 8(b)(1) of the United States Housing Act of 1937;
       (3) the voucher program for rental assistance under section 
     8(o) of the United States Housing Act of 1937;
       (4) the programs for project-based assistance under section 
     8 of the United States Housing Act of 1937;
       (5) the rental assistance payments program under section 
     521(a)(2)(A) of the Housing Act of 1949;
       (6) the program for housing for the elderly under section 
     202 of the Housing Act of 1959;
       (7) the program for housing for persons with disabilities 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act;
       (8) the program for financing housing by a loan or mortgage 
     insured under section 221(d)(3) of the National Housing Act 
     that bears interest at a rate determined under the proviso of 
     section 221(d)(5) of such Act;
       (9) the program under section 236 of the National Housing 
     Act;
       (10) the program for construction or substantial 
     rehabilitation under section 8(b)(2) of the United States 
     Housing Act of 1937, as in effect before October 1, 1983; and
       (11) any other program for housing assistance administered 
     by the Secretary of Housing and Urban Development or the 
     Secretary of Agriculture, under which occupancy in the 
     housing assisted or housing assistance provided is based on 
     income, as the Comptroller General may determine.
       (e) Report.--Not later than 12 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Congress a final report which shall contain the 
     results of the study under this section, including the 
     analysis and estimates required under subsection (b).
       (f) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 586. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG 
                   ELIMINATION ACT OF 1990.

       (a) Short Title.--This section may be cited as the ``Public 
     and Assisted Housing Drug Elimination Program Amendments of 
     1998''.
       (b) Findings.--Section 5122 of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11901) is amended--
       (1) in paragraph (2), by inserting ``or violent'' after 
     ``drug-related'';
       (2) in paragraph (4)--
       (A) by inserting ``and violent'' after ``drug-related''; 
     and
       (B) by striking ``and'' at the end;
       (3) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (4) by adding at the end the following new paragraphs:
       ``(6) the Federal Government should provide support for 
     effective safety and security measures to combat drug-related 
     and violent crime, primarily in and around public housing 
     projects with severe crime problems;
       ``(7) closer cooperation should be encouraged between 
     public and assisted housing managers, local law enforcement 
     agencies, and residents in developing and implementing anti-
     crime programs; and
       ``(8) anti-crime strategies should be improved through the 
     expansion of community-oriented policing initiatives.''.
       (c) Authority to Make Grants.--Section 5123 of the Anti-
     Drug Abuse Act of 1988 (42 U.S.C. 11902) is amended--
       (1) by inserting ``(a) In General.--'' before ``The'';
       (2) by striking ``tribally designated housing entities'' 
     and inserting ``recipients of assistance under the Native 
     American Housing Assistance and Self-Determination Act of 
     1996'';
       (3) by inserting ``and violent'' after ``drug-related''; 
     and
       (4) by adding at the end the following new subsection:
       ``(b) Consortia.--Subject to terms and conditions 
     established by the Secretary, public housing agencies may 
     form consortia for purposes of applying for grants under this 
     chapter.''.
       (d) Eligible Activities.--Section 5124 of the Anti-Drug 
     Abuse Act of 1988 (42 U.S.C. 11903) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4)(A), by striking ``drug-related crime 
     on or about'' and inserting ``drug-related or violent crime 
     in and around'';
       (B) in paragraph (6), by striking ``and'' at the end;

[[Page H9409]]

       (C) in paragraph (7)--
       (i) by striking ``tribally designated housing entity'' and 
     inserting ``recipient of assistance under the Native American 
     Housing Assistance and Self-Determination Act of 1996''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (8) by adding at the end the following new paragraph:
       ``(8) sports programs and sports activities that serve 
     primarily youths from public or other federally assisted low-
     income housing projects and are operated in conjunction with, 
     or in furtherance of, an organized program or plan designed 
     to reduce or eliminate drugs and drug-related problems in and 
     around such projects.''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``drug-related crime in'' and inserting ``drug-related crime 
     in and around''; and
       (B) in paragraph (2), by striking ``drug-related activity 
     at'' and inserting ``drug-related or violent activity in or 
     around''.
       (e) Applications.--Section 5125 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11904) is amended--
       (1) in subsection (a)--
       (A) by striking ``tribally designated housing entity'' and 
     inserting ``recipient of assistance under the Native American 
     Housing Assistance and Self-Determination Act of 1996'';
       (B) by striking ``crime on the premises'' and inserting 
     ``or violent crime in and around''; and
       (C) by inserting before the period at the end the 
     following: ``, which plan shall be coordinated with and may 
     be included in the public housing agency plan submitted to 
     the Secretary pursuant to section 5A of the United States 
     Housing Act of 1937'';
       (2) in subsection (b)--
       (A) in the matter that precedes paragraph (1), by striking 
     ``Except as'' and all that follows through ``on--'' and 
     inserting the following: ``The Secretary shall approve 
     applications under subsection (b) that are not subject to a 
     preference under subsection (b)(2)(A) on the basis of 
     thresholds or criteria such as--''; and
       (B) in paragraph (1), by striking ``crime problem in'' and 
     inserting ``or violent crime problem in and around'';
       (3) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``subsection (b)'' and inserting ``subsection (c)''; and
       (B) in paragraph (2), by inserting ``or violent'' after 
     ``drug-related'' each place it appears;
       (4) in subsection (d), by striking ``subsection (b)'' and 
     inserting ``subsection (c)'';
       (5) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively; and
       (6) by inserting after subsection (a) the following new 
     subsection:
       ``(b) 1-Year Renewable Grants.--
       ``(1) In general.--An eligible applicant that is a public 
     housing agency may apply for a 1-year grant under this 
     chapter that, subject to the availability of appropriated 
     amounts, shall be renewed annually for a period of not more 
     than 4 additional years, except that such renewal shall be 
     contingent upon the Secretary finding, upon an annual or more 
     frequent review, that the grantee agency is performing under 
     the terms of the grant and applicable laws in a satisfactory 
     manner and meets such other requirements as the Secretary may 
     prescribe. The Secretary may adjust the amount of any grant 
     received or renewed under this paragraph to take into account 
     increases or decreases in amounts appropriated for these 
     purposes or such other factors as the Secretary determines to 
     be appropriate.
       ``(2) Eligibility and preference.--The Secretary may not 
     provide assistance under this chapter to an applicant that is 
     a public housing agency unless--
       ``(A) the agency will use the grants to continue or expand 
     activities eligible for assistance under this chapter, as in 
     effect immediately before the effective date under section 
     503(a) of the Quality Housing and Work Responsibility Act of 
     1998, in which case the Secretary shall provide preference to 
     such applicant; except that preference under this 
     subparagraph shall not preclude selection by the Secretary of 
     other meritorious applications that address urgent or serious 
     crime problems nor be construed to require continuation of 
     activities determined by the Secretary to be unworthy of 
     continuation; or
       ``(B) the agency is in the class established under 
     paragraph (3).
       ``(3) Pha's having urgent or serious crime problems.--The 
     Secretary shall, by regulations issued after notice and 
     opportunity for public comment, set forth criteria for 
     establishing a class of public housing agencies that have 
     urgent or serious crime problems. The Secretary may reserve a 
     portion of the amount appropriated to carry out this chapter 
     in each fiscal year only for grants for public housing 
     agencies in such class, except that any amounts from such 
     portion reserved that are not obligated to agencies in the 
     class shall be made available only for agencies that are 
     subject to a preference under paragraph (2)(A).
       ``(4) Inapplicability to federally assisted low-income 
     housing.--The provisions of this subsection shall not apply 
     to federally assisted low-income housing.''.
       (f) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11905) is amended by striking paragraph 
     (5) and inserting the following new paragraph:
       ``(5) Recipient.--The term `recipient', when used in 
     reference to the Native American Housing Assistance and Self-
     Determination Act of 1996, has the meaning given such term in 
     section 4 of such Act.''.
       (g) Reports, Monitoring, and Funding.--Chapter 2 of 
     subtitle C of title V of the Anti-Drug Abuse Act of 1988 is 
     amended by striking sections 5127, 5128, 5129, and 5130 and 
     inserting the following new sections:

     ``SEC. 5127. REPORTS.

       ``(a) Grantee Reports.--The Secretary shall require 
     grantees under this chapter to provide periodic reports that 
     include the obligation and expenditure of grant funds, the 
     progress made by the grantee in implementing the plan 
     described in section 5125(a), and any change in the incidence 
     of drug-related crime in projects assisted under this 
     chapter.
       ``(b) HUD Reports.--The Secretary shall submit a report to 
     the Congress not later than 18 months after the date of the 
     enactment of the Quality Housing and Work Responsibility Act 
     of 1998 describing the system used to distribute funding to 
     grantees under this section, which shall include descriptions 
     of--
       ``(1) the methodology used to distribute amounts made 
     available under this chapter among public housing agencies, 
     including provisions used to provide for renewals of ongoing 
     programs funded under this chapter; and
       ``(2) actions taken by the Secretary to ensure that amounts 
     made available under this chapter are not used to fund 
     baseline local government services, as described in section 
     5128(b).
       ``(c) Notice of Funding Awards.--The Secretary shall cause 
     to be published in the Federal Register notice of all grant 
     awards made pursuant to this chapter, which shall identify 
     the grantees and the amount of the grants. Such notice shall 
     be published not less frequently than annually.

     ``SEC. 5128. MONITORING.

       ``(a) In General.--The Secretary shall audit and monitor 
     the programs funded under this chapter to ensure that 
     assistance provided under this chapter is administered in 
     accordance with the provisions of this chapter.
       ``(b) Prohibition of Funding Baseline Services.--
       ``(1) In general.--Amounts provided under this chapter may 
     not be used to reimburse or support any local law enforcement 
     agency or unit of general local government for the provision 
     of services that are included in the baseline of services 
     required to be provided by any such entity pursuant to a 
     local cooperation agreement under section 5(e)(2) of the 
     United States Housing Act of 1937 or any provision of an 
     annual contributions contract for payments in lieu of 
     taxation pursuant to section 6(d) of such Act.
       ``(2) Description.--Each public housing agency that 
     receives grant amounts under this chapter shall describe, in 
     the report under section 5127(a), such baseline of services 
     for the unit of general local government in which the 
     jurisdiction of the agency is located.
       ``(c) Enforcement.--The Secretary shall provide for the 
     effective enforcement of this section, which may include the 
     use of on-site monitoring, independent public audit 
     requirements, certification by local law enforcement or local 
     government officials regarding the performance of baseline 
     services referred to in subsection (b), and entering into 
     agreements with the Attorney General to achieve compliance, 
     and verification of compliance, with the provisions of this 
     chapter.

     ``SEC. 5129. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this chapter $310,000,000 for fiscal year 1999, 
     and such sums as may be necessary for fiscal years 2000, 
     2001, 2002, and 2003.
       ``(b) Set-Aside for Federally Assisted Low-Income 
     Housing.--Of any amounts made available in any fiscal year to 
     carry out this chapter not more than 6.25 percent shall be 
     available for grants for federally assisted low-income 
     housing.
       ``(c) Set-Aside for Technical Assistance and Program 
     Oversight.--Of any amounts appropriated in any fiscal year to 
     carry out this chapter, amounts shall be available to the 
     extent provided in appropriations Acts to provide training, 
     technical assistance, contract expertise, program oversight, 
     program assessment, execution, and other assistance for or on 
     behalf of public housing agencies, recipients of assistance 
     under the Native American Housing Assistance and Self-
     Determination Act of 1996, resident organizations, and 
     officials and employees of the Department (including training 
     and the 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 and to other 
     eligible grantees). Assistance and other activities carried 
     out using amounts made available under this subsection may be 
     provided directly or indirectly by grants, contracts, or 
     cooperative agreements.''.

     SEC. 587. 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; and
       (4) to evaluate the effectiveness of 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

[[Page H9410]]

     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 Secretary determines is in 
     such compliance issue a 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. 588. PROHIBITION ON USE OF ASSISTANCE 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 on 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 1999 or any succeeding fiscal year may be used to 
     assist directly in the relocation of any industrial or 
     commercial plant, facility, or operation, from 1 area to 
     another area, if the relocation is likely to result in a 
     significant loss of employment in the labor market area from 
     which the relocation occurs.''.

     SEC. 589. TREATMENT OF OCCUPANCY STANDARDS.

       (a) Establishment of Policy.--Not later than 60 days after 
     the date of the enactment of this Act, the Secretary of 
     Housing and Urban Development shall publish a notice in the 
     Federal Register for effect that takes effect upon 
     publication and provides that the specific and unmodified 
     standards provided in the March 20, 1991, Memorandum from the 
     General Counsel of the Department of Housing and Urban 
     Development to all Regional Counsel shall be the policy of 
     the Department of Housing and Urban Development with respect 
     to complaints of discrimination under the Fair Housing Act 
     (42 U.S.C. 3601 et seq.) on the basis of familial status 
     which involve an occupancy standard established by a housing 
     provider.
       (b) Prohibition of National Standard.--The Secretary of 
     Housing and Urban Development shall not directly or 
     indirectly establish a national occupancy standard.

     SEC. 590. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall, for not less than 10 jurisdictions that 
     are metropolitan cities or urban counties for purposes of 
     title I of the Housing and Community Development Act of 1974, 
     grant exceptions not later than 90 days after the date of the 
     enactment of this Act for such jurisdictions that provide 
     that--
       (1) for purposes of the HOME investment partnerships 
     program under title II of the Cranston-Gonzalez National 
     Affordable Housing Act, the limitation based on percentage of 
     median income that is applicable under section 104(10), 
     214(1)(A), or 215(a)(1)(A) for any area of the jurisdiction 
     shall be the numerical percentage that is specified in such 
     section; and
       (2) for purposes of the community development block grant 
     program under title I of the Housing and Community 
     Development Act of 1974, the limitation based on percentage 
     of median income that is applicable pursuant to section 
     102(a)(20) for any area within the State or unit of general 
     local government shall be the numerical percentage that is 
     specified in subparagraph (A) of such section.
       (b) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC 591. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.

       (a) In General.--Not later than 12 months after the date of 
     the enactment of this Act, the Inspector General of the 
     Department of Housing and Urban Development shall submit to 
     the Congress a report, which shall include information 
     relating to--
       (1) with respect to 1- to 4-family dwellings owned by the 
     Department of Housing and Urban Development, on a monthly 
     average basis--
       (A) the total number of units in those dwellings;
       (B) the number and percentage of units in those dwellings 
     that are unoccupied, and their average period of vacancy, and 
     the number and percentage of units in those dwellings that 
     have been unoccupied for more than 1 year, as of that date; 
     and
       (C) the number and percentage of units in those projects 
     that are determined by the Inspector General to be 
     substandard, based on any--
       (i) lack of hot or cold piped water;
       (ii) lack of working toilets;
       (iii) regular and prolonged breakdowns in heating;
       (iv) dangerous electrical problems;
       (v) unsafe hallways or stairways;
       (vi) leaking roofs, windows, or pipes;
       (vii) open holes in walls and ceilings; and
       (viii) indications of rodent infestation; and
       (2) with respect to multifamily housing projects (as that 
     term is defined in section 203 of the Housing and Community 
     Development Amendments of 1978) owned by the Department of 
     Housing and Urban Development on a monthly average basis--
       (A) the total number of units in those projects;
       (B) the number and percentage of units in those projects 
     that are unoccupied, and their average period of vacancy, and 
     the number and percentage of units in those projects that 
     have been unoccupied for more than 1 year, as of that date; 
     and
       (C) the number and percentage of units in those projects 
     that are determined by the Inspector General to be 
     substandard, based on any--
       (i) lack of hot or cold piped water;
       (ii) lack of working toilets;
       (iii) regular and prolonged breakdowns in heating;
       (iv) dangerous electrical problems;
       (v) unsafe hallways or stairways;
       (vi) leaking roofs, windows, or pipes;
       (vii) open holes in walls and ceilings; and
       (viii) indications of rodent infestation; and
       (3) the Department's plans and operations to address 
     vacancies and substandard physical conditions described in 
     paragraphs (1) and (2).
       (b) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 592. USE OF ASSISTED HOUSING BY ALIENS.

       (a) In General.--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).
       (b) Effective Date.--The amendments made by this section 
     are made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 593. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE 
                   MORTGAGE PROGRAM.

       (a) Mortgage Insurance Authority.--Section 255(g) of the 
     National Housing Act (12 U.S.C. 1715z-20(g)) is amended by 
     striking the first 2 sentences and inserting the following 
     new sentence: ``The aggregate number of mortgages insured 
     under this section may not exceed 150,000.''.
       (b) Other Approaches to Consumer Education.--Section 255(f) 
     of the National Housing Act (12 U.S.C. 1715z-20(f)) is 
     amended by adding after paragraph (5) the following:
     ``The Secretary shall consult with consumer groups, industry 
     representatives, representatives of counseling organizations, 
     and other interested parties to identify alternative 
     approaches to providing consumer information required by this 
     subsection that may be feasible and desirable for home equity 
     conversion mortgages insured under this section and other 
     types of reverse mortgages. The Secretary may, in lieu of 
     providing the consumer education required by this subsection, 
     adopt alternative approaches to consumer education that may 
     be developed as a result of such consultations, but only if 
     the alternative approaches provide all of the information 
     specified in this subsection.''.
       (c) Funding for Counseling and Consumer Education and 
     Outreach.--Section 255 of the National Housing Act (12 U.S.C. 
     1715z-20) is amended by adding at the end the following new 
     subsection:
       ``(l) Funding for Counseling and Consumer Education and 
     Outreach.--Of any amounts made available for any of fiscal 
     years 2000 through 2003 for housing counseling under section 
     106 of the Housing and Urban Development Act of 1968, up to a 
     total of $1,000,000 shall be available to the Secretary in 
     each such fiscal year, in such amounts as the Secretary 
     determines appropriate, for the following purposes in 
     connection with home equity conversion mortgages insured 
     under this section:
       ``(1) Counseling.--For housing counseling authorized by 
     section 106 of the Housing and Urban Development Act of 1968.
       ``(2) Consumer education.--For transfer to the departmental 
     salaries and expenses account for consumer education and 
     outreach activities.''.
       (d) Conforming Amendments.--Section 255 of the National 
     Housing Act (12 U.S.C. 1715z-20) is amended--

[[Page H9411]]

       (1) in the section heading, by striking ``demonstration 
     program of'';
       (2) in subsections (a) and (i)(1), by striking 
     ``demonstration'' each place it appears;
       (3) in subsection (a)--
       (A) in paragraph (1), by inserting ``and'' after the 
     semicolon at the end;
       (B) in paragraph (2), by striking ``; and'' at the end and 
     inserting a period; and
       (C) by striking paragraph (3);
       (4) by striking subsection (k) (relating to reports to 
     Congress); and
       (5) by redesignating subsection (l) (as added by subsection 
     (c) of this section) as subsection (k).
       (e) Disclosure Requirements and Prohibition of Funding of 
     Unnecessary or Excessive Costs.--
       (1) In general.--Section 255(d) of the National Housing Act 
     (12 U.S.C. 1715z-20(d)) is amended--
       (A) in paragraph (2)--
       (i) in subparagraph (B), by striking ``and'' at the end;
       (ii) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) has received full disclosure, as prescribed by the 
     Secretary, of all costs charged to the mortgagor, including 
     costs of estate planning, financial advice, and other 
     services that are related to the mortgage but are not 
     required to obtain the mortgage, which disclosure shall 
     clearly state which charges are required to obtain the 
     mortgage and which are not required to obtain the mortgage; 
     and''
       (B) in paragraph (9)(F), by striking ``and'';
       (C) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (D) 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.''.
       (2) Implementation.--
       (A) Notice.--The Secretary of Housing and Urban Development 
     shall, by interim notice, implement the amendments made by 
     paragraph (1) 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 
     subparagraph (B) of this paragraph.
       (B) Regulations.--The Secretary shall, not later than the 
     expiration of the 90-day period beginning on the date of the 
     enactment of this Act, issue final regulations to implement 
     the amendments made by paragraph (1). Such regulations shall 
     be issued only after notice and opportunity for public 
     comment pursuant to the provisions of section 553 of title 5, 
     United States Code (notwithstanding subsections (a)(2) and 
     (b)(3)(B) of such section).
       (f) Effective Date.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 594. 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, 2000''.
       (b) 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).''.
       (c) Effective Date.--The amendments made by this section 
     are made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 595. NATIVE AMERICAN HOUSING ASSISTANCE.

       (a) Subsidy Layering Certification.--Section 206 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4136) is amended--
       (1) by striking ``certification by the Secretary'' and 
     inserting ``certification by a recipient to the Secretary''; 
     and
       (2) by striking ``any housing project'' and inserting ``the 
     housing project involved''.
       (b) Inclusion of Homebuyer Selection Policies and 
     Criteria.--Section 207(b) of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4137(b)) is amended--
       (1) by striking ``Tenant Selection.--'' and inserting 
     ``Tenant  and Homebuyer Selection.--'';
       (2) in the matter preceding paragraph (1), by inserting 
     ``and homebuyer'' after ``tenant''; and
       (3) in paragraph (3)(A), by inserting ``and homebuyers'' 
     after ``tenants''.
       (c) Repayment of Grant Amounts for Violation of Affordable 
     Housing Requirement.--Section 209 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4139) is amended by striking ``section 205(2)'' and 
     inserting ``section 205(a)(2)''.
       (d) Amendment to United States Housing Act of 1937.--
     Section 7 of the United States Housing Act of 1937 (42 U.S.C. 
     1437e) is amended by striking subsection (h).
       (e) Miscellaneous.--
       (1) Definition of indian areas.--Section 4(10) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103(10)) is amended to read as follows:
       ``(10) Indian area.--The term `Indian area' means the area 
     within which an Indian tribe or a tribally designated housing 
     entity, as authorized by 1 or more Indian tribes, provides 
     assistance under this Act for affordable housing.''.
       (2) Cross-reference.--Section 4(12)(C)(i)(II) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4103(12)(C)(i)(II)) is amended by striking 
     ``section 107'' and inserting ``section 705''.
       (3) Local cooperation agreements.--Section 101(c) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4111(c)) is amended to read as follows:
       ``(c) Local Cooperation Agreement.--Notwithstanding any 
     other provision of this Act, grant amounts provided under 
     this Act on behalf of an Indian tribe may not be used for 
     rental or lease-purchase homeownership units that are owned 
     by the recipient for the tribe unless the governing body of 
     the locality within which the property subject to the 
     development activities to be assisted with the grant amounts 
     is or will be situated has entered into an agreement with the 
     recipient for the tribe providing for local cooperation 
     required by the Secretary pursuant to this Act.''.
       (4) Exemption from taxation.--Section 101(d) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4111(d)) is amended--
       (A) by striking the subsection designation and subsection 
     heading and all that follows through the end of paragraph (1) 
     and inserting the following:
       ``(d) Exemption From Taxation.--Notwithstanding any other 
     provision of this Act, grant amounts provided under this Act 
     on behalf of an Indian tribe may not be used for affordable 
     housing activities under this Act for rental or lease-
     purchase dwelling units developed under the United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) or with amounts 
     provided under this Act that are owned by the recipient for 
     the tribe unless--
       ``(1) such dwelling units (which, in the case of units in a 
     multi-unit project, shall be exclusive of any portions of the 
     project not developed under the United States Housing Act of 
     1937 or with amounts provided under this Act) are exempt from 
     all real and personal property taxes levied or imposed by any 
     State, tribe, city, county, or other political subdivision; 
     and''; and
       (B) in paragraph (2), in the matter preceding subparagraph 
     (A), by inserting ``for the tribe'' after ``the recipient''.
       (5) Submission of indian housing plan.--Section 102(a) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4112(a)) is amended--
       (A) in paragraph (1), by inserting ``(A)'' after ``(1)'';
       (B) in paragraph (1)(A), as so designated by subparagraph 
     (A) of this paragraph, by adding ``or'' at the end;
       (C) by striking ``(2)'' and inserting ``(B)''; and
       (D) by striking ``(3)'' and inserting ``(2)''.
       (6) Clarification.--Section 103(c)(3) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4113(c)(3)) is amended by inserting ``not'' 
     before ``prohibited''.
       (7) Applicability of provisions of civil rights.--Section 
     201(b)(5) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4131(b)(5)) is amended--
       (A) by striking ``Indian tribes'' and inserting ``federally 
     recognized tribes and the tribally designated housing 
     entities of those tribes''; and
       (B) by striking ``under this subsection'' and inserting 
     ``under this Act''.
       (8) Eligibility.--Section 205(a)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4135(a)(1)) is amended--
       (A) in subparagraph (A), by striking ``and'' at the end; 
     and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) in the case of a contract to purchase existing 
     housing, is made available for purchase only by a family that 
     is a low-income family at the time of purchase;
       ``(C) in the case of a lease-purchase agreement for 
     existing housing or for housing to be constructed, is made 
     available for lease-purchase only by a family that is a low-
     income family at the time the agreement is entered into; and
       ``(D) in the case of a contract to purchase housing to be 
     constructed, is made available for purchase only by a family 
     that is a low-income family at the time the contract is 
     entered into; and''.
       (9) Tenant selection.--Section 207(b)(3)(B) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4137(b)(3)(B)) is amended by striking ``of 
     any rejected applicant of the grounds for any rejection'' and 
     inserting ``to any rejected applicant of that rejection and 
     the grounds for that rejection''.
       (10) Availability of records.--Section 208 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4138) is amended--
       (A) in subsection (a), by striking ``paragraph (2)'' and 
     inserting ``subsection (b)''; and
       (B) in subsection (b), by striking ``paragraph (1)'' and 
     inserting ``subsection (a)''.
       (11) IHP requirement.--Section 184(b)(2) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) 
     is amended by striking ``that is under the jurisdiction of an 
     Indian tribe'' and all that follows before the period at the 
     end.
       (12) Authorization of Appropriations.--Section 184(i)(5)(C) 
     of the Housing and Community Development Act of 1992 (12 
     U.S.C. 1715z-13a(i)(5)(C)) is amended by striking ``note'' 
     and inserting ``not''.

[[Page H9412]]

       (13) Environmental review under the indian housing loan 
     guarantee program.--Section 184 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
       (A) by redesignating subsection (k) as subsection (l); and
       (B) by inserting after subsection (j) the following:
       ``(k) Environmental Review.--For purposes of environmental, 
     review, decisionmaking, and action under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
     any other law that furthers the purposes of that Act, a loan 
     guarantee under this section shall--
       ``(1) be treated as a grant under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.); and
       ``(2) be subject to the regulations promulgated by the 
     Secretary to carry out section 105 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4115).''.
       (14) Public availability of information.--
       (A) In general.--Title IV of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161 
     et seq.) is amended by adding at the end the following:

     ``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

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

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

       (15) Ineligibility of indian tribes.--Section 460 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899h-1) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal year 1998''.
       (16) Treatment of previous amendments.--Section 402 of The 
     Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) is 
     amended by striking subsection (e).
       (f) Effective Date.--The amendments made by this section 
     are made and shall apply beginning upon the date of the 
     enactment of this Act.

     SEC. 596. CDBG PUBLIC SERVICES CAP.

       (a) In General.--Section 105(a)(8) of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is 
     amended by striking ``1998'' and inserting ``2000''.
       (b) Effective Date.--The amendment made by this section is 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 597. MODERATE REHABILITATION PROGRAM.

       (a) Reprogramming.--Notwithstanding any other provision of 
     law, but only to the extent specifically provided in advance 
     in a subsequent appropriations Act, the Secretary of Housing 
     and Urban Development shall reprogram funds under contracts 
     NY36K113004 and NY36K113005 of the Department of Housing and 
     Urban Development and shall allocate such funds to the City 
     of New Rochelle, New York. Such allocation shall be 
     consistent with the requirements of the HOME Investment 
     Partnerships Act. This section shall take effect on the date 
     of the enactment of this Act.
       (b) Exception Projects.--Section 524(a)(2) of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42 U.S.C. 1437f note) is amended--
       (1) by inserting ``and subject to section 516 of this 
     subtitle'' after ``Notwithstanding paragraph (1)''; and
       (2) by striking ``the base rent adjusted by an operating 
     cost adjustment factor established by the Secretary'' and 
     inserting ``the lesser of existing rents, adjusted by an 
     operating cost adjustment factor established by the 
     Secretary, fair market rents (less any amounts allowed for 
     tenant-purchased utilities), or comparable market rents for 
     the market area''.
       (c) Effective Date.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 598. NATIONAL CITIES IN SCHOOLS PROGRAM.

       From amounts that are or have been recaptured in the Annual 
     Contributions for Assisted Housing account, before any 
     rescissions of such amounts, $5,000,000, shall be transferred 
     to the National Cities in Schools Community Development 
     Program account, to remain available until expended, that the 
     Secretary of Housing and Urban Development shall make 
     available to carry out the National Cities in Schools 
     Community Development Program under section 930 of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550, 106 Stat. 3672, 3887). This section shall take 
     effect on the date of the enactment of this Act.

     SEC. 599. TENANT PARTICIPATION IN MULTIFAMILY HOUSING 
                   PROJECTS.

       (a) In General.--The last sentence of subsection (a) of 
     section 202 of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1715z-1b(a)) is amended by 
     inserting before the period at the end the following: ``, or 
     a project which receives project-based assistance under 
     section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f) or enhanced vouchers under the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990, the 
     provisions of the Emergency Low Income Housing Preservation 
     Act of 1987, or the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997''.
       (b) Applicability.--The amendment made by this section is 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599A. CLARIFICATION REGARDING RECREATIONAL VEHICLES.

       (a) In General.--Section 603(6) of the Manufactured Housing 
     Construction and Safety Standards Act of 1974 (42 U.S.C. 
     5402(6)) is amended by inserting before the semicolon at the 
     end the following: ``; and except that such term shall not 
     include any self-propelled recreational vehicle''.
       (b) Applicability.--The amendment made by this section is 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599B. DETERMINATION OF LOW-INCOME ELIGIBILITY FOR 
                   HOMEOWNERSHIP ASSISTANCE.

       (a) Income Targeting.--Section 214(2) of the Cranston-
     Gonzalez National Affordable Housing Act is amended by 
     striking ``at the time of occupancy or at the time funds are 
     invested, whichever is later''.
       (b) Qualification as Affordable Housing.--Section 215(b)(2) 
     of such Act is amended to read as follows:
       ``(2) is the principal residence of an owner whose family 
     qualifies as a low-income family--
       ``(A) in the case of a contract to purchase existing 
     housing, at the time of purchase;
       ``(B) in the case of a lease-purchase agreement for 
     existing housing or for housing to be constructed, at the 
     time the agreement is signed; or
       ``(C) in the case of a contract to purchase housing to be 
     constructed, at the time the contract is signed;''.
       (c) Applicability.--The amendments made by this section are 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599C. AMENDMENTS TO RURAL HOUSING PROGRAMS.

       (a) Permanent Extension of Underserved Areas Program.--
     Section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 
     1479(f)(4)(A)) is amended--
       (1) in the first sentence, by striking ``fiscal year 1998'' 
     and inserting ``each fiscal year''; and
       (2) in the second sentence, by striking ``such fiscal 
     year'' and inserting ``each fiscal year''.
       (b) Permanent Extension of Section 515 Program.--
       (1) Authority to make loans.--Section 515(b) of the Housing 
     Act of 1949 (42 U.S.C. 1485(b)(4)) is amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (4), (5), and (6), respectively.
       (2) Set-aside for nonprofit entities.--The first sentence 
     of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(w)(1)) is amended by striking ``fiscal year 1998'' and 
     inserting ``each fiscal year''.
       (c) Loan Guarantee Program for Multifamily Rental Housing 
     in Rural Areas.--Section 538 of the Housing Act of 1949 (42 
     U.S.C. 1490p-2) is amended--
       (1) in subsection (t), by striking ``fiscal year 1998'' and 
     inserting ``each fiscal year''; and
       (2) by striking subsection (u) and inserting the following 
     new subsection:
       ``(u) Tax-Exempt Financing.--The Secretary may not deny a 
     guarantee under this section on the basis that the interest 
     on the loan or on an obligation supporting the loan for which 
     a guarantee is sought is exempt from inclusion in gross 
     income for purposes of chapter I of the Internal Revenue Code 
     of 1986.''.
       (d) Farm Labor Housing Eligibility for Low-Income Housing 
     Tax Credit Financing.--The first sentence of section 514(a) 
     of the Housing Act of 1949 (42 U.S.C. 1484(a)) is amended by 
     inserting ``, or any nonprofit limited partnership in which 
     the general partner is a nonprofit entity,'' after ``private 
     nonprofit organization''.
       (e) Optional Conversion of Rental Assistance Payments to 
     Operating Subsidy for Migrant Farmworker Projects.--
       (1) In general.--Section 521(a) of the Housing Act of 1949 
     (42 U.S.C. 1490(a)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Operating assistance for migrant farmworker 
     projects.--
       ``(A) Authority.--In the case of housing (and related 
     facilities) for migrant farmworkers provided or assisted with 
     a loan under section 514 or a grant under section 516, the 
     Secretary may, at the request of the owner of the project, 
     use amounts provided for rental assistance payments under 
     paragraph (2) to provide assistance for the costs of 
     operating the project. Any project assisted under this 
     paragraph may not receive rental assistance under paragraph 
     (2).
       ``(B) Amount.--In any fiscal year, the assistance provided 
     under this paragraph for any project shall not exceed an 
     amount equal to 90 percent of the operating costs for the 
     project for the year, as determined by the Secretary. The 
     amount of assistance to be provided for a project under this 
     paragraph shall be an amount that makes units in the project 
     available to migrant farmworkers in the area of the project 
     at rates not exceeding 30 percent of the monthly adjusted 
     incomes of such farmworkers, based on the prevailing incomes 
     of such farmworkers in the area.
       ``(C) Submission of information.--The owner of a project 
     assisted under this paragraph shall be required to provide to 
     the Secretary, at least annually, a budget of operating 
     expenses and estimated rental income, which the Secretary may 
     use to determine the amount of assistance for the project.
       ``(D) Definitions.--For purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) The term `migrant farmworker' has the same meaning 
     given such term in section 516(k)(7).
       ``(ii) The term `operating cost' means expenses incurred in 
     operating a project, including expenses for--
       ``(I) administration, maintenance, repair, and security of 
     the project;

[[Page H9413]]

       ``(II) utilities, fuel, furnishings, and equipment for the 
     project; and
       ``(III) maintaining adequate reserve funds for the 
     project.''.
       (2) Conforming amendments.--Title V of the Housing Act of 
     1949 (42 U.S.C. 1471 et seq.) is amended--
       (A) in section 502--
       (i) in subsection (c)(1)(A)(i), by striking ``or (a)(2)'' 
     and inserting ``, (a)(2), or (5)'';
       (ii) in subsection (c)(4)(B)(ii), by inserting before the 
     period at the end the following: ``, or additional assistance 
     or an increase in assistance provided under section 
     521(a)(5)'';
       (iii) in subsection (c)(4)(B)(iii), by ``or 521(a)(5)'' 
     after ``section 521(a)(2)'';
       (iv) in subsection (c)(4)(B)(v), by inserting before the 
     period at the end the following: ``, or current tenants of 
     projects not assisted under section 521(a)(5)'';
       (v) in subsection (c)(5)(C)(iii)--

       (I) by striking the second comma; and
       (II) by inserting ``or any assistance payments received 
     under section 521(a)(5),'' before ``with respect''; and

       (vi) in subsection (c)(5)(D), by inserting before the 
     period at the end the following: ``or, in the case of housing 
     assisted under section 521(a)(5), does not exceed the rents 
     established for the project under such section'';
       (B) in the second sentence of subparagraph (A) of section 
     509(f)(4), by striking ``an amount of section 521 rental 
     assistance'' and inserting ``from amounts available for 
     assistance under paragraphs (2) and (5) of section 521(a), an 
     amount'';
       (C) in section 513(c)(2)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or contracts for operating assistance under section 
     521(a)(5)'' after ``section 521(a)(2)(A)'';
       (ii) in subparagraph (A), by inserting ``or operating 
     assistance contracts'' after ``contracts'';
       (iii) in subparagraph (B), by striking ``rental'' each 
     place it appears; and
       (iv) in subparagraph (C), by inserting ``or operating 
     assistance contracts'' after ``contracts'';
       (D) in section 521(a)(2)(B)--
       (i) by inserting ``or paragraph (5)'' after ``this 
     paragraph''; and
       (ii) by striking ``which shall'' and all that follows 
     through the period at the end and inserting the following: 
     ``. The budget (and the income, in the case of a project 
     assisted under this paragraph) shall be used to determine the 
     amount of the assistance for each project.'';
       (E) in section 521(c), by striking ``subsection (a)(2)'' 
     and inserting ``subsections (a)(2) and (a)(5)'';
       (F) in section 521(e), by inserting after ``recipient'' the 
     following: ``or any tenant in a project assisted under 
     subsection (a)(5)''; and
       (G) in section 530, by striking ``rental assistance 
     payments with respect to such project under section 
     521(a)(2)(A)'' and inserting ``assistance payments with 
     respect to such project under section 521(a)(2)(A) or 
     521(a)(5)''.
       (f) Rural Housing Guaranteed Loans.--Section 502(h)(6)(C) 
     of the Housing Act of 1949 (42 U.S.C. 1472(h)(6)(C)) is 
     amended by striking ``, subject to the maximum dollar amount 
     limitation of section 203(b)(2) of the National Housing Act'' 
     each place it appears.
       (g) Applicability.--The amendments made by this section are 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599D. REAUTHORIZATION OF NATIONAL FLOOD INSURANCE 
                   PROGRAM.

       (a) Program Expiration.--Section 1319 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
     ``September 30, 1998'' and inserting ``September 30, 2001''.
       (b) Emergency Implementation of Program.--Section 1336(a) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4056(a)) is amended by striking ``September 30, 1998'' and 
     inserting ``September 30, 2001''.
       (c) Applicability.--The amendments made by this section are 
     made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599E. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

       (a) National Competitive Grants.--Section 11 of the Housing 
     Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
     note) is amended--
       (1) in subsection (a), by striking ``to--'' and all that 
     follows and inserting the following: ``to national and 
     regional organizations and consortia that have experience in 
     providing or facilitating self-help housing homeownership 
     opportunities.'';
       (2) in subsection (b)--
       (A) in paragraph (4), by striking ``Habitat for Humanity, 
     its affiliates, and other''; and
       (B) in paragraph (5), by striking ``similar to the 
     homeownership program carried out by Habitat for Humanity 
     International,'';
       (3) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) National Competition.--The Secretary shall select 
     organizations and consortia referred to in subsection (a) to 
     receive grants through a national competitive process, which 
     the Secretary shall establish.'';
       (4) in subsection (e), by striking paragraph (2) and 
     inserting the following new paragraph:
       ``(2) Assistance to affiliates.--Any organization or 
     consortia that receives a grant under this section may use 
     amounts in the fund established for such organization or 
     consortia pursuant to paragraph (1) for the purposes under 
     subsection (d) by providing assistance from the fund to local 
     affiliates of such organization or consoria.'';
       (5) in subsection (f)--
       (A) in the subsection heading, by striking ``to Other 
     Organizations''; and
       (B) in the matter preceding paragraph (1), by striking 
     ``subsection (a)(2)'' and inserting ``subsection (a)'';
       (6) by striking subsection (g);
       (7) in subsection (h)--
       (A) by striking the first sentence; and
       (B) in the second sentence, by striking ``subsection 
     (a)(2)'' and inserting ``subsection (a)'';
       (8) in subsection (i)(5), by inserting ``(or, in the case 
     of grant amounts from amounts made available for fiscal year 
     1996 to carry out this section, within 36 months)'' before 
     the comma;
       (9) in subsection (j), by inserting ``(or, in the case of 
     grant amounts from amounts made available for fiscal year 
     1996 to carry out this section, within 36 months)'' before 
     the second comma;
       (10) in subsection (k)(1), by striking ``under subsection 
     (a)(1) or (a)(2)'';
       (11) by redesignating subsection (p) as subsection (q);
       (12) by inserting after subsection (o) the following new 
     subsection:
       ``(p) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated for fiscal 
     years 1999 and 2000 such sums as may be necessary.''; and
       (13) in the section heading, by striking ``HABITAT FOR 
     HUMANITY AND OTHER''.
       (b) Savings Provisions.--Notwithstanding the amendments 
     made by subsection (a), any grant under section 11 of the 
     Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
     12805 note) from amounts appropriated in fiscal year 1998 or 
     any prior fiscal year shall be governed by the provisions of 
     such section 11 as in effect immediately before the enactment 
     of this Act, except that the amendments made by paragraphs 
     (8) and (9) of subsection (a) of this section shall apply to 
     such grants.
       (c) Effective Date.--This section shall take effect, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

     SEC. 599F. SPECIAL MORTGAGE INSURANCE ASSISTANCE.

       (a) In General.--Section 237 of the National Housing Act 
     (12 U.S.C. 1715z-2) is amended--
       (1) in subsection (b), by inserting ``not more than 26 
     percent of the total principal obligation (including such 
     initial service charges, and such appraisal, inspection, and 
     other fees as the Secretary shall approve) of'' before ``any 
     mortgage'';
       (2) in paragraph (c)(2) by striking ``$18,000:'' and all 
     that follows through the end of the paragraph and inserting 
     ``$70,000;'';
       (3) in paragraph (c)(3)--
       (A) by inserting ``, prior to and during the 12 months 
     immediately following the purchase of the property, from a 
     community development financial institution under section 
     103(5) of the Community Development Banking and Financial 
     Institutions Act of 1994'' after ``budget, debt management, 
     and related counseling''; and
       (B) by striking ``and'' at the end;
       (4) in paragraph (c)(4)--
       (A) by striking ``25'' and inserting ``36''; and
       (B) by striking the period and inserting ``; and'';
       (5) in subsection (c), by adding at the end the following 
     new paragraphs:
       ``(5) require the mortgagor to be subject, if necessary, to 
     a default mitigation effort undertaken by an intermediary 
     community development financial institution under section 
     103(5) of the Community Development Banking and Financial 
     Institutions Act of 1994, that is acting as a sponsor and 
     pass-through of insurance under section 203 and is approved 
     by the Secretary;
       ``(6) involve a total principal obligation (including such 
     initial service charges, and such appraisal, inspection, and 
     other fees as the Secretary shall approve) that is not more 
     than 90 percent of the value of the property for which the 
     mortgage is provided; and
       ``(7) involve a total principal obligation (including such 
     initial service charges, and such appraisal, inspection, and 
     other fees as the Secretary shall approve) in which the 
     mortgagor has equity (as defined by the Secretary) of not 
     less than 10 percent and such equity shall be subordinate to 
     the interest of the Secretary in the mortgaged property.'';
       (6) in subsection (d), by striking ``and (2)'' and 
     inserting ``(2) to families living in empowerment zones and 
     enterprise communities (as those terms are defined in section 
     1393(b) of the Internal Revenue Code of 1986 (26 U.S.C. 
     1393(b)) who are eligible for homeownership assistance, and 
     (3)'';
       (7) in subsection (e), by striking ``public or private 
     organizations'' and inserting ``community development 
     financial institutions under section 103(5) of the Community 
     Development Banking and Financial Institutions Act of 1994'';
       (8) in subsection (f), by striking ``all mortgages'' and 
     inserting ``the portions of mortgages'';
       (9) by redesignating subsection (g) as subsection (j); and
       (10) by inserting after subsection (f), the following new 
     subsections:
       ``(g) Mortgages insured under this section shall be subject 
     to an insurance premium fee of not more than 1.25 percent of 
     the total mortgage principal obligation (including such 
     initial service charges, and such appraisal, inspection, and 
     other fees as the Secretary shall approve).
       ``(h) Before insuring a mortgage under this section, the 
     Secretary shall enter into such contracts or other agreements 
     as may be necessary to ensure that the mortgagee or other 
     holder of the mortgage shall assume not less than 10 percent 
     and not more than 50 percent of any loss on the insured 
     mortgage, subject to any reasonable limit on the liability of 
     the mortgagee or holder of the mortgage that may be specified 
     in the event of unusual or catastrophic losses that may be 
     incurred by any one mortgagee or mortgage holder.
       ``(i) No guarantees may be issued under section 306(g) for 
     the timely payment of interest or principal on securities 
     backed, in whole or in part, by mortgages insured under this 
     section.''.

[[Page H9414]]

       (b) Effective Date.--The amendments under by this section 
     are made on, and shall apply beginning upon, the date of the 
     enactment of this Act.

     SEC. 599G. REHABILITATION DEMONSTRATION GRANT PROGRAM.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall, to the extent amounts are provided in 
     appropriation Acts to carry out this section, carry out a 
     program to demonstrate the effectiveness of making grants for 
     rehabilitation of single family housing located within 10 
     demonstration areas designated by the Secretary. Of the areas 
     designated by the Secretary under this section--
       (1) 6 shall be areas that have primarily urban 
     characteristics;
       (2) 3 shall be areas that are outside of a metropolitan 
     statistical area; and
       (3) 1 shall be an area that has primarily rural 
     characteristics.
     In selecting areas, the Secretary shall provide for national 
     geographic and demographic diversity.
       (b) Grantees.--Grants under the program under this section 
     may be made only to agencies of State and local governments 
     and non-profit organizations operating within the 
     demonstration areas.
       (c) Selection Criteria.--In selecting among applications 
     for designation of demonstration areas and grants under this 
     section, the Secretary shall consider--
       (1) the extent of single family residences located in the 
     proposed area that have rehabilitation needs;
       (2) the ability and expertise of the applicant in carrying 
     out the purposes of the demonstration program, including the 
     availability of qualified housing counselors and contractors 
     in the proposed area willing and able to participate in 
     rehabilitation activities funded with grant amounts;
       (3) the extent to which the designation of such area and 
     the grant award would promote affordable housing 
     opportunities;
       (4) the extent to which selection of the proposed area 
     would have a beneficial effect on the neighborhood or 
     community in the area and on surrounding areas;
       (5) the extent to which the applicant has demonstrated that 
     grant amounts will be used to leverage additional public or 
     private funds to carry out the purposes of the demonstration 
     program;
       (6) the extent to which lenders (including local lenders 
     and lenders outside the proposed area) are willing and able 
     to make loans for rehabilitation activities assisted with 
     grant funds; and
       (7) the extent to which the application provides for the 
     involvement of local residents in the planning of 
     rehabilitation activities in the demonstration area.
       (d) Use of Grant Funds.--Funds from grants made under this 
     section may be used by grantees--
       (1) to subsidize interest on loans, over a period of not 
     more than 5 years from the origination date of the loan, made 
     after the date of the enactment of this Act for 
     rehabilitation of any owner-occupied 1- to 4-family 
     residence, including the payment of interest during any 
     period in which a residence is uninhabitable because of 
     rehabilitation activities;
       (2) to facilitate loans for rehabilitation of 1- to 4-
     family properties previously subject to a mortgage insured 
     under the National Housing Act that has been foreclosed or 
     for which insurance benefits have been paid, including to 
     establish revolving loan funds, loan loss reserves, and other 
     financial structures; and
       (3) to provide technical assistance in conjunction with the 
     rehabilitation of owner-occupied 1- to 4-family residences, 
     including counseling, selection contractors, monitoring of 
     work, approval of contractor payments, and final inspection 
     of work.
       (e) Definition of Rehabilitation.--For purposes of this 
     section, the term ``rehabilitation'' has the meaning given 
     such term in section 203(k)(2)(B) of the National Housing Act 
     (12 U.S.C. 1709(k)(2)(B)).
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     such sums as may be necessary for each of fiscal years 1999 
     through 2003.
       (g) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 599H. ASSISTANCE FOR CERTAIN LOCALITIES.

       (a) Use of HOME Funds For Public Housing Modernization.--
     Notwithstanding section 212(d)(5) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12742(d)(5)), 
     amounts made available to the City of Bismarck, North Dakota 
     or the State of North Dakota, under subtitle A of title II of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12741 et seq.) for fiscal year 1998, 1999, 2000, 2001, 
     or 2002, may be used to carry out activities authorized under 
     section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 1437l) for the purpose of modernizing the Crescent 
     Manor public housing project located at 107 East Bowen 
     Avenue, in Bismarck, North Dakota, if--
       (1) the Burleigh County Housing Authority (or any successor 
     public housing agency that owns or operates the Crescent 
     Manor public housing project) has obligated all other Federal 
     assistance made available to that public housing agency for 
     that fiscal year; or
       (2) the Secretary of Housing and Urban Development 
     authorizes the use of those amounts for the purpose of 
     modernizing that public housing project, which authorization 
     may be made with respect to 1 or more of those fiscal years.
       (b) Consultation With Affected Areas in Settlement of 
     Litigation.--In negotiating any settlement of, or consent 
     decree for, significant litigation regarding public housing 
     or section 8 tenant-based assistance that involves the 
     Secretary and any public housing agency or any unit of 
     general local government, the Secretary shall seek the views 
     of any units of general local government and public housing 
     agencies having jurisdictions that are adjacent to the 
     jurisdiction of the public housing agency involved, if the 
     resolution of such litigation would involve the acquisition 
     or development of public housing dwelling units or the use of 
     vouchers under section 8 of the United States Housing Act of 
     1937 in jurisdictions that are adjacent to the jurisdiction 
     of the public housing agency involved in the litigation.
       (c) Treatment of PHA Repayment Agreement.--
       (1) 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.
       (2) Alternative Repayment Options.--During the period 
     referred to in paragraph (1), the Secretary shall assist the 
     housing authority referred to in such paragraph to identify 
     alternative repayment options to the plan referred to in such 
     paragraph and to execute an amended repayment plan that will 
     not adversely affect the housing referred to in such 
     paragraph.
       (3) Rule of construction.--This subsection may not be 
     construed to alter--
       (A) any lien held by the Secretary pursuant to the 
     agreement referred to in paragraph (1); or
       (B) the obligation of the housing authority referred to in 
     paragraph (1) 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).
       (d) Ceiling Rents For Certain Section 8 Properties.--
     Notwithstanding any other provision of law, within 30 days 
     after the date of the enactment of this Act, the Secretary 
     shall establish ceiling rents for the Marshall Field Garden 
     Apartments Homes in Chicago, Illinois, at rent levels, in the 
     determination of the Secretary made in consultation with the 
     owner, that facilitate retaining or attracting working class 
     families.
       (e) Application for Moving to Work Demonstration Program.--
     Upon the submission of an application for participation in 
     the moving to work demonstration program under section 204 of 
     the Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (as contained in section 101(e) of the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996; 42 
     U.S.C. 1437f note) by the Charlotte Housing Authority of 
     Charlotte, North Carolina, or the Housing Authority of the 
     City of Pittsburgh, Pennsylvania, the Secretary of Housing 
     and Urban Development shall--
       (1) consider such application, notwithstanding--
       (A) the limitation under subsection (b) of such section on 
     the number of public housing agencies that may participate in 
     such program; or
       (B) any limitation regarding the date for the submission of 
     applications for participation in such program; and
       (2) approve or disapprove the application based on the 
     criteria for selection for participation in such program, 
     notwithstanding the limitations referred to in paragraph (1) 
     of this subsection.
       (f) Use of Project to Benefit Low-Income Persons.--The 
     project funded by the Secretary of Housing and Urban 
     Development under the supportive housing program of title IV 
     of the Stewart B. McKinney Homeless Assistance Act through 
     grant number FL 29T90-1285 (commonly known as Royal Pointe) 
     shall be considered to have been approved pursuant to section 
     423(b)(3) of such Act as of December 31, 1995 for use for the 
     direct benefit of low-income persons.
       (g) 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''.
       (h) Funding for Purchase and Conversion of Existing 
     Assisted Housing.--Notwithstanding any other provision of 
     law, and only to the extent specifically provided in a 
     subsequent appropriations Act, from any amounts previously 
     appropriated for Annual Contributions for Assisted Housing or 
     for the Public Housing Capital Fund and not obligated by the 
     Secretary, the Secretary may make available to the Lockport 
     Housing Authority in Lockport, New York, such sums as may be 
     necessary for use in accordance with section 5 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437c) for the purchase 
     and rehabilitation of a project that is assisted under 
     section 8 of such Act and located on a site contiguous to the 
     site of a public housing project administered by the agency.
       (i) Rural and Tribal Assistance.--From the amounts that 
     were made available to the Secretary under the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1998, for grants for 
     rural and tribal areas pursuant to the 5th undesignated 
     paragraph of the heading ``Community Planning and 
     Development--community development block grant programs'' 
     (Public Law 105-65; 111 Stat. 1357), the Secretary shall 
     provide from any amounts remaining unobligated--

[[Page H9415]]

       (1) $2,800,000 for seed money for a multi-State rural 
     homeownership campaign administered by the Rural 
     Opportunities Affordable Housing Finance Alliance; and
       (2) $500,000 to the Rural Housing Institute of the 
     Muscatine Center for Strategic Action.
       Notwithstanding any other provision of this Act, this 
     subsection shall take affect only to the extent specifically 
     provided in a subsequent appropriations Act.
       (j) Community Services Demonstration.--
       (1) Authority.--The Secretary of Housing and Urban 
     Development shall, to the extent amounts are appropriated to 
     carry out this subsection, provide financial assistance to 
     the Bethune-Cookman College in Volusia County, Florida (in 
     this subsection referred to as the ``College''), in 
     accordance with the provisions of this subsection, for the 
     College to establish and operate, as a national 
     demonstration, the Bethune-Cookman Community Services Student 
     Union Center.
       (2) Use.--Any financial assistance provided to the College 
     pursuant to this subsection shall be used by the College for 
     the construction, maintenance, and endowment of the Bethune-
     Cookman Community Services Student Union Center through--
       (A) the acquisition of necessary equipment, including 
     utility vehicles; or
       (B) the acquisition of necessary real property;
       (3) Application.--The Secretary shall provide financial 
     assistance under this subsection only pursuant to application 
     by the College for such assistance at such time, in such 
     manner, and providing such information as the Secretary of 
     Housing and Urban Development may reasonably require.
       (4) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary for 
     assistance under this subsection. Any amounts appropriated 
     pursuant to this subsection shall remain available until 
     expended.
       (k) Independence Square Foundation.--Notwithstanding any 
     other provision of law, including 28 U.S.C. 516, the 
     Secretary of Housing and Urban Development shall enforce the 
     use agreement entered into between the Secretary and the 
     Independence Square Foundation of Newport, Rhode Island: 
     Provided further, That such enforcement shall include the 
     option of instituting civil litigation to determine the 
     current applicability of the aforementioned use agreement or 
     petition for the issuance of an injunction to prevent the 
     demolition of the property subject to the aforementioned use 
     agreement.
       (l) Removal of HOPE VI Demolition Requirement.--The 
     Secretary may approve otherwise qualified applications 
     received in response to a notice published at 63 Federal 
     Register 15489 (March 31, 1998) for grants from the 
     $26,000,000 set-aside of amounts made available under the 
     head `REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING 
     (HOPE VI)' in the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 1998 (Public Law 105-65, 111 Stat. 1354) 
     without regard to whether such applications propose or plan 
     demolition of obsolete public housing projects.
       (m) Effective Date.--This section shall take effect on, and 
     the amendments made by this section are made on, and shall 
     apply beginning upon, the date of the enactment of this Act.

               TITLE VI--FHA PROPERTY DISPOSITION REFORM

     SEC. 601. SINGLE FAMILY CLAIMS REFORM AND SALE OF PROPERTY.

       (a) Revision of Claims Procedures.--Section 204 of the 
     National Housing Act (12 U.S.C. 1710) is amended by striking 
     ``Sec. 204.'' and all that follows through the end of 
     subsection (a) and inserting the following:
       ``Sec. 204. (a) In General.--
       ``(1) Authorized claims procedures.--The Secretary may, in 
     accordance with this subsection and terms and conditions 
     prescribed by the Secretary, pay insurance benefits to a 
     mortgagee for any mortgage insured under section 203 through 
     any of the following methods:
       ``(A) Assignment of mortgage.--The Secretary may pay 
     insurance benefits whenever a mortgage has been in a monetary 
     default for not less than 3 full monthly installments or 
     whenever the mortgagee is entitled to foreclosure for a 
     nonmonetary default. Insurance benefits shall be paid 
     pursuant to this subparagraph only upon the assignment, 
     transfer, and delivery to the Secretary of--
       ``(i) all rights and interests arising under the mortgage;
       ``(ii) all claims of the mortgagee against the mortgagor or 
     others arising out of the mortgage transaction;
       ``(iii) title evidence satisfactory to the Secretary; and
       ``(iv) such records relating to the mortgage transaction as 
     the Secretary may require.
       ``(B) Conveyance of title to property.--The Secretary may 
     pay insurance benefits if the mortgagee has acquired title to 
     the mortgaged property through foreclosure or has otherwise 
     acquired such property from the mortgagor after a default 
     upon--
       ``(i) the prompt conveyance to the Secretary of title to 
     the property which meets the standards of the Secretary in 
     force at the time the mortgage was insured and which is 
     evidenced in the manner provided by such standards; and
       ``(ii) the assignment to the Secretary of all claims of the 
     mortgagee against the mortgagor or others, arising out of 
     mortgage transaction or foreclosure proceedings, except such 
     claims as may have been released with the consent of the 
     Secretary.

     The Secretary may permit the mortgagee to tender to the 
     Secretary a satisfactory conveyance of title and transfer of 
     possession directly from the mortgagor or other appropriate 
     grantor, and may pay to the mortgagee the insurance benefits 
     to which it would otherwise be entitled if such conveyance 
     had been made to the mortgagee and from the mortgagee to the 
     Secretary.
       ``(C) Claim without conveyance of title.--The Secretary may 
     pay insurance benefits upon sale of the mortgaged property at 
     foreclosure where such sale is for at least the fair market 
     value of the property (with appropriate adjustments), as 
     determined by the Secretary, and upon assignment to the 
     Secretary of all claims referred to in clause (ii) of 
     subparagraph (B).
       ``(D) Preforeclosure sale.--The Secretary may pay insurance 
     benefits upon the sale of the mortgaged property by the 
     mortgagor after default and the assignment to the Secretary 
     of all claims referred to in clause (ii) of subparagraph (B), 
     if--
       ``(i) the sale of the mortgaged property has been approved 
     by the Secretary;
       ``(ii) the mortgagee receives an amount at least equal to 
     the fair market value of the property (with appropriate 
     adjustments), as determined by the Secretary; and
       ``(iii) the mortgagor has received an appropriate 
     disclosure, as determined by the Secretary.
         (2) Payment for loss mitigation.--The Secretary may pay 
     insurance benefits to the mortgagee to recompense the 
     mortgagee for all or part of any costs of the mortgagee for 
     taking loss mitigation actions that provide an alternative to 
     foreclosure of a mortgage that is in default (including but 
     not limited to actions such as special forbearance, loan 
     modification, and deeds in lieu of foreclosure, but not 
     including assignment of mortgages to the Secretary under 
     section 204(a)(1)(A)). No actions taken under this paragraph, 
     nor any failure to act under this paragraph, by the Secretary 
     or by a mortgagee shall be subject to judicial review.
       ``(3) Determination of claims procedure.--The Secretary 
     shall publish guidelines for determining which of the 
     procedures for payment of insurance under paragraph (1) are 
     available to a mortgagee when it claims insurance benefits. 
     At least one of the procedures for payment of insurance 
     benefits specified in paragraph (1)(A) or (1)(B) shall be 
     available to a mortgagee with respect to a mortgage, but the 
     same procedure shall not be required to be available for all 
     of the mortgages held by a mortgagee.
       ``(4) Servicing of assigned mortgages.--If a mortgage is 
     assigned to the Secretary under paragraph (1)(A), the 
     Secretary may permit the assigning mortgagee or its servicer 
     to continue to service the mortgage for reasonable 
     compensation and on terms and conditions determined by the 
     Secretary. Neither the Secretary nor any servicer of the 
     mortgage shall be required to forbear from collection of 
     amounts due under the mortgage or otherwise pursue loss 
     mitigation measures.
       ``(5) Calculation of insurance benefits.--Insurance 
     benefits shall be paid in accordance with section 520 and 
     shall be equal to the original principal obligation of the 
     mortgage (with such additions and deductions as the Secretary 
     determines are appropriate) which was unpaid upon the date 
     of--
       ``(A) assignment of the mortgage to the Secretary;
       ``(B) the institution of foreclosure proceedings;
       ``(C) the acquisition of the property after default other 
     than by foreclosure; or
       ``(D) sale of the mortgaged property by the mortgagor.
       ``(6) Forbearance and recasting after default.--The 
     mortgagee may, upon such terms and conditions as the 
     Secretary may prescribe--
       ``(A) extend the time for the curing of the default and the 
     time for commencing foreclosure proceedings or for otherwise 
     acquiring title to the mortgaged property, to such time as 
     the mortgagee determines is necessary and desirable to enable 
     the mortgagor to complete the mortgage payments, including an 
     extension of time beyond the stated maturity of the mortgage, 
     and in the event of a subsequent foreclosure or acquisition 
     of the property by other means the Secretary may include in 
     the amount of insurance benefits an amount equal to any 
     unpaid mortgage interest; or
       ``(B) provide for a modification of the terms of the 
     mortgage for the purpose of recasting, over the remaining 
     term of the mortgage or over such longer period pursuant to 
     guidelines as may be prescribed by the Secretary, the total 
     unpaid amount then due, with the modification to become 
     effective currently or to become effective upon the 
     termination of an agreed-upon extension of the period for 
     curing the default; and the principal amount of the mortgage, 
     as modified, shall be considered the `original principal 
     obligation of the mortgage' for purposes of paragraph (5).
       ``(7) Termination of premium obligation.--The obligation of 
     the mortgagee to pay the premium charges for insurance shall 
     cease upon fulfillment of the appropriate requirements under 
     which the Secretary may pay insurance benefits, as described 
     in paragraph (1). The Secretary may also terminate the 
     mortgagee's obligation to pay mortgage insurance premiums 
     upon receipt of an application filed by the mortgagee for 
     insurance benefits under paragraph (1), or in the event the 
     contract of insurance is terminated pursuant to section 229.
       ``(8) Effect on payment of insurance benefits under section 
     230.--Nothing in this section shall limit the authority of 
     the Secretary to pay insurance benefits under section 230.
       ``(9) Treatment of mortgage assignment program.--
     Notwithstanding any other provision of law, or the Amended 
     Stipulation entered as a consent decree on November 8, 1979, 
     in Ferrell v. Cuomo, No. 73 C 334 (N.D. Ill.), or any other 
     order intended to require the Secretary to operate the 
     program of mortgage assignment and forbearance that was 
     operated by the Secretary pursuant to the Amended Stipulation 
     and

[[Page H9416]]

     under the authority of section 230, prior to its amendment by 
     section 407(b) of The Balanced Budget Downpayment Act, I 
     (Public Law 104-99; 110 Stat. 45), no mortgage assigned under 
     this section may be included in any mortgage foreclosure 
     avoidance program that is the same or substantially 
     equivalent to such a program of mortgage assignment and 
     forbearance.''.
       (b) Effective Date.--The Secretary shall publish a notice 
     in the Federal Register stating the effective date of the 
     terms and conditions prescribed by the Secretary under 
     section 204(a)(1) of the National Housing Act, as amended by 
     subsection (a) of this section. Subsections (a) and (k) of 
     section 204 of the National Housing Act, as in effect 
     immediately before such effective date, shall continue to 
     apply to any mortgage insured under section 203 of the 
     National Housing Act before such effective date, except that 
     the Secretary may, at the request of the mortgagee, pay 
     insurance benefits as provided in subparagraphs (A) and (D) 
     of section 204(a)(1) of such Act to calculate insurance 
     benefits in accordance with section 204(a)(5) of such Act.
       (c) Repeal of Redundant Provision.--Subsection (k) of 
     section 204 of the National Housing Act (12 U.S.C. 1710(k)) 
     is hereby repealed.
       (d) Authority To Sell.--Section 204(g) of the National 
     Housing Act (12 U.S.C. 1710(g)) is amended by adding at the 
     end the following new sentence: ``The Secretary may sell real 
     and personal property acquired by the Secretary pursuant to 
     the provisions of this Act on such terms and conditions as 
     the Secretary may prescribe.''.
       (e) Authority To Insure Mortgage.--Section 223(c) of the 
     National Housing Act (12 U.S.C. 1715n(c)) is amended--
       (1) by striking ``him'' each place it appears and inserting 
     ``the Secretary''; and
       (2) by inserting before ``of any property acquired'', the 
     following: ``, including a sale through another entity acting 
     under authority of the fourth sentence of section 204(g),''.
       (f) Loss Mitigation.--Section 230 of the National Housing 
     Act is amended--
       (1) by redesignating subsections (a) through (e) as (b) 
     through (f); and
       (2) by inserting a new subsection (a) as follows:
       ``(a) Upon default of any mortgage insured under this 
     title, mortgagees shall engage in loss mitigation actions for 
     the purpose of providing an alternative to foreclosure 
     (including but not limited to actions such as special 
     forbearance, loss modification, and deeds in lieu of 
     foreclosure, but not including assignment of mortgages to the 
     Secretary under section 204(a)(1)(A)) as provided in 
     regulations by the Secretary.''.
       (g) Penalty.--Section 536(a) of the National Housing Act is 
     amended by inserting at the end of paragraph (2) the 
     following:
       ``In the case of the mortgagee's failure to engage in loss 
     mitigation activities, as provided in section 536(b)(1)(I), 
     the penalty shall be in the amount of three times the amount 
     of any insurance benefits claimed by the mortgagee with 
     respect to any mortgage for which the mortgagee failed to 
     engage in such loss mitigation actions.''.
       (h) Violation.--Section 536(b)(1) of the National Housing 
     Act is amended by inserting after subparagraph (h) the 
     following:
       ``(I) Failure to engage in loss mitigation actions as 
     provided in section 230(a) of this Act.''.

     SEC. 602. DISPOSITION OF HUD-OWNED SINGLE FAMILY ASSETS IN 
                   REVITALIZATION AREAS.

       Section 204 of the National Housing Act (12 U.S.C. 1710) is 
     amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection:
       ``(h) Disposition of Assets in Revitalization Areas.--
       ``(1) In general.--The purpose of this subsection is to 
     require the Secretary to carry out a program under which 
     eligible assets (as such term is defined in paragraph (2)) 
     shall be made available for sale in a manner that promotes 
     the revitalization, through expanded homeownership 
     opportunities, of revitalization areas. Notwithstanding the 
     authority under the last sentence of subsection (g), the 
     Secretary shall dispose of all eligible assets under the 
     program and shall establish the program in accordance with 
     the requirements under this subsection.
       ``(2) Eligible assets.--For purposes of this subsection, 
     the term `eligible asset' means any of the following assets 
     of the Secretary:
       ``(A) Properties.--Any property that--
       ``(i) is designed as a dwelling for occupancy by 1 to 4 
     families;
       ``(ii) is located in a revitalization area;
       ``(iii) was previously subject to a mortgage insured under 
     the provisions of this Act; and
       ``(iv) is owned by the Secretary pursuant to the payment of 
     insurance benefits under this Act.
       ``(B) Mortgages.--Any mortgage that--
       ``(i) is an interest in a property that meets the 
     requirements of clauses (i) and (ii) of subparagraph (A);
       ``(ii) was previously insured under the provisions of this 
     Act; and
       ``(iii) is held by the Secretary pursuant to the payment of 
     insurance benefits under this Act.
     For purposes of this subsection, an asset under this 
     subparagraph shall be considered to be located in a 
     revitalization area, or in the asset control area of a 
     preferred purchaser, if the property described in clause (i) 
     is located in such area.
       ``(C) Future interests.--Any contingent future interest of 
     the Secretary in an asset described in subparagraph (A) or 
     (B).
       ``(3) Revitalization areas.--The Secretary shall designate 
     areas as revitalization areas for purposes of this 
     subsection. Before designation of an area as a revitalization 
     area, the Secretary shall consult with affected units of 
     general local government and interested nonprofit 
     organizations. The Secretary may designate as revitalization 
     areas only areas that meet one of the following requirements:
       ``(A) Very-low income area.--The median household income 
     for the area is less than 60 percent of the median household 
     income for--
       ``(i) in the case of any area located within a metropolitan 
     area, such metropolitan area; or
       ``(ii) in the case of any area not located within a 
     metropolitan area, the State in which the area is located.
       ``(B) High concentration of eligible assets.--A high rate 
     of default or foreclosure for single family mortgages insured 
     under the National Housing Act has resulted, or may result, 
     in the area--
       ``(i) having a disproportionately high concentration of 
     eligible assets, in comparison with the concentration of such 
     assets in surrounding areas; or
       ``(ii) being detrimentally impacted by eligible assets in 
     the vicinity of the area.
       ``(C) Low home ownership rate.--The rate for home ownership 
     of single family homes in the area is substantially below the 
     rate for homeownership in the metropolitan area.
       ``(4) Preference for sale to preferred purchasers.--The 
     Secretary shall provide a preference, among prospective 
     purchasers of eligible assets, for sale of such assets to any 
     purchaser who--
       ``(A) is--
       ``(i) the unit of general local government having 
     jurisdiction with respect to the area in which are located 
     the eligible assets to be sold; or
       ``(ii) a nonprofit organization;
       ``(B) in making a purchase under the program under this 
     subsection--
       ``(i) establishes an asset control area, which shall be an 
     area that consists of part or all of a revitalization area; 
     and
       ``(ii) purchases all interests of the Secretary in all 
     assets of the Secretary that, at any time during the period 
     which shall be set forth in the sale agreement required under 
     paragraph (7)--

       ``(I) are or become eligible assets; and
       ``(II) are located in the asset control area of the 
     purchaser; and

       ``(C) has the capacity to carry out the purchase of 
     eligible assets under the program under this subsection and 
     under the provisions of this paragraph.
       ``(5) Agreements Required for Purchase.--
       ``(A) Preferred purchasers.--Under the program under this 
     subsection, the Secretary may sell an eligible asset as 
     provided in paragraph (4) to a preferred purchaser only 
     pursuant to a binding agreement by the preferred purchaser 
     that the eligible asset will be used in conjunction with a 
     home ownership plan that provides as follows:
       ``(i) The plan has as its primary purpose the expansion of 
     home ownership in, and the revitalization of, the asset 
     control area, established pursuant to paragraph (4)(B)(i) by 
     the purchaser, in which the eligible asset is located.
       ``(ii) Under the plan, the preferred purchaser has 
     established, and agreed to meet, specific performance goals 
     for increasing the rate of home ownership for eligible assets 
     in the asset control area that are under the purchaser's 
     control. The plan shall provide that the Secretary may waive 
     or modify such goals or deadlines only upon a determination 
     by the Secretary that a good faith effort has been made in 
     complying with the goals through the homeownership plan and 
     that exceptional neighborhood conditions prevented attainment 
     of the goal.
       ``(iii) Under the plan, the preferred purchaser has 
     established rehabilitation standards that meet or exceed the 
     standards for housing quality established under subparagraph 
     (B)(iii) by the Secretary, and has agreed that each asset 
     property for an eligible asset purchased will be 
     rehabilitated in accordance with such standards.
       ``(B) Non-preferred purchasers.--Under the program under 
     this subsection, the Secretary may sell an eligible asset to 
     a purchaser who is not a preferred purchaser only pursuant to 
     a binding agreement by the purchaser that complies with the 
     following requirements:
       ``(i) The purchaser has agreed to meet specific performance 
     goals established by the Secretary for home ownership of the 
     asset properties for the eligible assets purchased by the 
     purchaser, except that the Secretary may, by including a 
     provision in the sale agreement required under paragraph (7), 
     provide for a lower rate of home ownership in sales involving 
     exceptional circumstances.
       ``(ii) The purchaser has agreed that each asset property 
     for an eligible asset purchased will be rehabilitated to 
     comply with minimum standards for housing quality established 
     by the Secretary for purposes of the program under this 
     subsection.
       ``(6) Discount for preferred purchasers.--
       ``(A) In general.--For the purpose of providing a public 
     purpose discount for the bulk sales of eligible assets made 
     under the program under this subsection by preferred 
     purchasers, each eligible asset sold through the program 
     under this subsection to a preferred purchaser shall be sold 
     at a price that is discounted from the value of the asset, as 
     based on the appraised value of the asset property (as such 
     term is defined in paragraph (8)).
       ``(B) Appraisals.--The Secretary shall require that each 
     appraisal of an eligible asset under this paragraph is based 
     upon--
       ``(i) the market value of the asset property in its `as is' 
     physical condition, which shall take into consideration age 
     and condition of major mechanical and structural systems; and
       ``(ii) the value of the property appraised for home 
     ownership.
       ``(C) Discount classes.--The Secretary, in the sole 
     discretion of the Secretary, shall establish the discount 
     under this paragraph for an

[[Page H9417]]

     eligible asset, which shall be in one of the following 
     amounts:
       ``(i) Standard discount.--In the case only of eligible 
     assets with asset properties that, at the time of sale under 
     this subsection, do not meet the standards for housing 
     quality established pursuant to paragraph (5)(B)(ii), an 
     amount that--

       ``(I) is appropriate to provide reasonable resources for 
     the improvement such assets; and
       ``(II) takes into consideration the financial safety and 
     soundness of the Mutual Mortgage Insurance Fund.

       ``(ii) Deep discount.--In the case only of eligible assets 
     described in clause (i) for which the Secretary determines a 
     deep discount is appropriate, an amount that exceeds the 
     amount of a standard discount under clause (i). In making a 
     determination whether a deep discount is appropriate, the 
     Secretary may consider the condition of the asset property, 
     the extent of resources available to the preferred purchaser, 
     the comprehensive revitalization plan undertaken by such 
     purchaser, or any other circumstances the Secretary considers 
     appropriate.
       ``(iii) Minimal discount.--In the case only of eligible 
     assets with asset properties that, at the time of sale under 
     this subsection, meet or substantially meet the standards for 
     housing quality established pursuant to paragraph (5)(B)(ii), 
     an amount that is less than the amount of a standard discount 
     under clause (i) of this subparagraph and is sufficient to 
     provide assistance to the preferred purchaser in meeting 
     costs associated with compliance with the program 
     requirements under this subsection.
       ``(D) Determination of discount class.--The Secretary 
     shall, in the sole discretion of the Secretary, establish a 
     method for determining which discount under clause (i) or 
     (ii) subparagraph (C) shall be provided for an eligible asset 
     that is described in such clause (i) and sold to a preferred 
     purchaser. The method may result in the assignment of 
     discounts on any basis consistent with subparagraph (C) that 
     the Secretary considers appropriate to carry out the purposes 
     of this subsection.
       ``(7) Sale agreement.--The Secretary may sell an eligible 
     asset under this subsection only pursuant to a sale agreement 
     entered into under this paragraph with the purchaser, which 
     shall include the following provisions:
       ``(A) Assets.--The sale agreement shall identify the 
     eligible assets to be purchased and the interests sold.
       ``(B) Revitalization area and asset control area.--The sale 
     agreement shall identify--
       ``(i) the boundaries of the specific revitalization areas 
     (or portions thereof) in which are located the eligible 
     assets that are covered by the agreement; and
       ``(ii) in the case of a preferred purchaser, the asset 
     control area established pursuant to paragraph (4)(B)(i) that 
     is covered by the agreement.
       ``(C) Financing.--The sale agreement shall identify the 
     sources of financing for the purchase of the eligible assets.
       ``(D) Binding agreements.--The sale agreement shall contain 
     binding agreements by the purchaser sufficient to comply 
     with--
       ``(i) in the case of a preferred purchaser, the 
     requirements under paragraph (5)(A), which agreements shall 
     provide that the eligible assets purchased will be used in 
     conjunction with a home ownership plan meeting the 
     requirements of such paragraph, and shall set forth the terms 
     of the homeownership plan, including--

       ``(I) the goals of the plan for the eligible assets 
     purchased and for the asset control area subject to the plan;
       ``(II) the revitalization areas (or portions thereof) in 
     which the homeownership plan is operating or will operate;
       ``(III) the specific use or disposition of the eligible 
     assets under the plan; and
       ``(IV) any activities to be conducted and services to be 
     provided under the plan; or

       ``(ii) in the case of a purchaser who is not a preferred 
     purchaser, the requirements under paragraph (5)(B).
       ``(E) Purchase price and discount.--The sale agreement 
     shall establish the purchase price of the eligible assets, 
     which in the case of a preferred purchaser shall provide for 
     a discount in accordance with paragraph (6).
       ``(F) Housing quality.--The sale agreement shall provide 
     for compliance of the eligible assets purchased with the 
     rehabilitation standards established under paragraph 
     (5)(A)(iii) or the minimum standards for housing quality 
     established under paragraph (5)(B)(ii), as applicable, and 
     shall specify such standards.
       ``(G) Performance goals and sanctions.--The sale agreement 
     shall set forth the specific performance goals applicable to 
     the purchaser, in accordance with paragraph (5), shall set 
     forth any sanctions for failure to meet such goals and 
     deadlines, and shall require the purchaser to certify 
     compliance with such goals.
       ``(H) Period covered.--The sale agreement shall establish--
       ``(i) in the case of a preferred purchaser, the time period 
     referred to in paragraph (4)(B)(ii); and
       ``(ii) in the case of a purchaser who is not a preferred 
     purchaser, the time period for purchase of eligible assets 
     that may be covered by the purchase.
       ``(I) Other terms.--The agreement shall contain such other 
     terms and conditions as may be necessary to require that 
     eligible assets purchased under the agreement are used in 
     accordance with the program under this subsection.
       ``(8) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Asset control area.--The term `asset control area' 
     means the area established by a preferred purchaser pursuant 
     to paragraph (4)(B)(i).
       ``(B) Asset property.--The term `asset property' means--
       ``(i) with respect to an eligible asset that is a property, 
     such property; and
       ``(ii) with respect to an eligible asset that is a 
     mortgage, the property that is subject to the mortgage.
       ``(C) Eligible asset.--The term `eligible asset' means an 
     asset described in paragraph (2).
       ``(D) Nonprofit organization.--The term `nonprofit 
     organization' means a private organization that--
       ``(i) is organized under State or local laws;
       ``(ii) has no part of its net earnings inuring to the 
     benefit of any member, shareholder, founder, contributor, or 
     individual; and
       ``(iii) complies with standards of financial responsibility 
     that the Secretary may require.
       ``(E) Preferred purchaser.--The term `preferred purchaser' 
     means a purchaser described in paragraph (4).
       ``(F) Unit of general local government.--The term `unit of 
     general local government' means any city, town, township, 
     county, parish, village, or other general purpose political 
     subdivision of a State.
       ``(9) Secretary's discretion.--The Secretary shall have the 
     authority to implement and administer the program under this 
     subsection in such manner as the Secretary may determine. The 
     Secretary may, in the sole discretion of the Secretary, enter 
     into contracts to provide for the proper administration of 
     the program with such public or nonprofit entities as the 
     Secretary determines are qualified.
       ``(10) Regulations.--The Secretary shall issue regulations 
     to implement the program under this subsection through 
     rulemaking in accordance with the procedures established 
     under section 553 of title 5, United States Code, regarding 
     substantive rules. Such regulations shall take effect not 
     later than the expiration of the 2-year period beginning on 
     the date of the enactment of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1999.''.
       Titles I, II, III, IV, and VI of this Act may be cited as 
     the ``Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1999''.
       And the Senate agree to the same.
     Jerry Lewis,
     Tom DeLay,
     James T. Walsh,
     David L. Hobson,
     Joe Knollenberg,
     R. Frelinghuysen,
     Mark W. Neumann,
     Roger Wicker,
     Bob Livingston,
     Louis Stokes,
     Alan B. Mollohan,
     Marcy Kaptur,
     Carrie P. Meek,
     David E. Price,
     Dave Obey,

                                Managers on the Part of the House.

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

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 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 
     the fiscal year ending September 30, 1999, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying report.
       The language and allocations set forth in House Report 105-
     610 and Senate Report 105-216 should be complied with unless 
     specifically addressed to the contrary in the conference 
     report and statement of the managers. Report language 
     included by the House which is not changed by the report of 
     the Senate or the conference, and Senate report language 
     which is not changed by the conference is approved by the 
     committee of conference. The statement of the managers, while 
     repeating some report language for emphasis, does not intend 
     to negate the language referred to above unless expressly 
     provided herein. In cases in which the House or Senate have 
     directed the submission of a report, such report is to be 
     submitted to both House and Senate Committees on 
     Appropriations.

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration


                              MEDICAL CARE

       Appropriates $17,306,000,000 for medical care, instead of 
     $17,361,395,998 ($17,057,396,000 in the medical care account 
     and an additional $303,999,998 in Sec. 427 of the General 
     Provisions) as proposed by the House and $17,250,000,000 as 
     proposed by the Senate.
       The amount provided for medical care is an increase of 
     $278,025,000 above the VA's budget request and reflects the 
     high priority the conferees place on ensuring quality health 
     care for veterans. The VA is to propose how it plans to spend 
     these additional funds, including the increased number of 
     veterans that will be able to receive health care, in

[[Page H9418]]

     the operating plan. That plan is to be submitted within 30 
     days of enactment of the appropriations bill.
       Delays the availability of $778,000,000 of the medical care 
     appropriation in the equipment and land and structures object 
     classifications until August 1, 1999, instead of delaying the 
     availability of $777,000,000--a net of $846,000,000 in the 
     medical care account and a reduction in that amount of 
     $69,000,000 as provided in Sec. 425 of the General 
     Provisions--as proposed by the House and $687,000,000 as 
     proposed by the Senate.
       Deletes language proposed by the House and stricken by the 
     Senate earmarking $6,000,000 of the medical care 
     appropriation for the Musculoskeletal Disease Center. Funding 
     for this activity is included in the medical and prosthetic 
     research appropriation.
       Restores language proposed by the House and stricken by the 
     Senate transferring not to exceed $22,633,000 from the 
     medical care appropriation to the general operating expenses 
     appropriation for expenses of the Office of Resolution 
     Management (ORM) and the Office of Employment Discrimination 
     Complaint Adjudication (OEDCA), amended to transfer not to 
     exceed $27,420,000 ($25,690,000 for ORM and $1,730,000 for 
     OEDCA). Additional information on funding for these two 
     offices is included under the VA's administrative provisions 
     section of this report.
       Deletes language proposed by the Senate earmarking 
     $14,000,000 for the homeless grant program and $6,000,000 for 
     the homeless per diem program, and expanding authorized 
     homeless assistance activities. In deleting the bill 
     language, the conferees agree that not less than $20,000,000 
     of fiscal year 1999 medical care funds shall be made 
     available for the homeless grant and homeless per diem 
     programs.
       Inserts language proposed by the Senate earmarking 
     $10,000,000 of fiscal year 1999 medical care funds for 
     implementation of the Primary Care Providers Incentive Act, 
     contingent upon enactment of authorizing legislation, amended 
     to earmark not to exceed $10,000,000.
       The conferees have provided $3,000,000 for the Center of 
     Excellence at the Truman Memorial VA Medical Center which 
     would support such activities as clinical studies on 
     hypertension, surfactants, and lupus erythematosus.
       The conferees note concerns have been expressed that the 
     use of local pay surveys may be of questionable validity in 
     determining nurse pay rates, and urge the Department to 
     address this matter expeditiously. The VA is to prepare a 
     report on its plans to address this concern and submit it to 
     the House and Senate authorization and appropriations 
     committees by December 1, 1998.
       The conferees are aware of a recently released General 
     Accounting Office report titled ``VA Health Care: More 
     Veterans Are Being Served, but Better Oversight Is Needed.'' 
     The VA is directed to take immediate steps to implement the 
     report's recommendations. The VA is also directed to report 
     to the Committees on Appropriations by February 1, 1999 on 
     proposals to address the recommendations contained in the 
     report.


                    MEDICAL AND PROSTHETIC RESEARCH

       Appropriates $316,000,000 for medical and prosthetic 
     research, instead of $320,000,000 ($310,000,000 in the 
     medical and prosthetic research account and an additional 
     $10,000,000 in Sec. 423 of the General Provisions) as 
     proposed by the House and $310,000,000 as proposed by the 
     Senate.
       Inserts language earmarking $6,000,000 of the increase in 
     the medical and prosthetic research appropriation for the 
     Musculoskeletal Disease Center, instead of earmarking such 
     funds in the medical care appropriation as proposed by the 
     House. The Senate did not propose such an earmarking of 
     funds.
       Last year's conference agreement included $10,000,000 for 
     research into Parkinson's Disease. The conferees agree that 
     the VA is to utilize up to $10,000,000 of the recommended 
     increase to expand research into Parkinson's Disease.
       The fiscal year 1998 medical and prosthetic research 
     appropriation included $12,500,000 for research relating to 
     Persian Gulf War illnesses. The conferees expect the VA to 
     maintain such research as a high priority in fiscal year 
     1999.


      MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES

       Appropriates $63,000,000 for medical administration and 
     miscellaneous operating expenses, instead of $60,000,000 as 
     proposed by the House and the Senate.
       The Under Secretary for Health has identified high priority 
     areas that need to be strengthened for better results in the 
     delivery of healthcare. To support these higher priority 
     activities, VA has started a reduction-in-force in the Office 
     of Facilities Management's (OFM) tactical support function. 
     To provide time to explore other options for funding these 
     services, the conferees have agreed to a one-time increase of 
     $3,000,000 to support enhanced clinical, quality and 
     performance management activities. The conferees note that 
     Price Waterhouse recently completed, at the request of the 
     Veterans Health Administration, an independent review of the 
     Office of Facilities Management. That review recommended a 
     number of changes to improve the management of VA facility 
     infrastructure. The conferees expect that the Department will 
     develop a plan for implementing Price Waterhouse's 
     recommendations, wherever appropriate, and any decisions made 
     pursuant to the future of OFM's tactical support functions 
     are to be made consistent with that report. The VA is to 
     prepare a report for the Committees on Appropriations, to be 
     submitted concurrently with the fiscal year 2000 budget 
     request, on its long-range plans for the Office of Facilities 
     Management. The conferees do not expect that any reductions-
     in-force will be required in fiscal year 1999, unless the VA 
     fails to submit an acceptable alternative proposal.

                      Departmental Administration


                       GENERAL OPERATING EXPENSES

       Appropriates $855,661,000 for general operating expenses as 
     proposed by the House, instead of $854,661,000 as proposed by 
     the Senate.
       The $6,000,000 increase above the budget request is for the 
     activities associated with restructuring the Veterans 
     Benefits Administration (VBA) so as to improve the timeliness 
     and accuracy of processing the various types of claims. The 
     average time it currently takes to process claims is not 
     acceptable. The availability of the increase is subject to 
     the submission of a detailed operating plan for VBA that 
     closely follows the recommendations of the National Academy 
     of Public Administration.
       In the past, the VA has not had realistic plans to improve 
     service delivery to veterans. The VBA should set realistic 
     goals for timeliness and accuracy for each different type of 
     claim and develop a multi-year plan for attaining these 
     goals--commensurate with the level of resources requested and 
     planned for the future. Goals and plans should be developed 
     not only at the national level, but also for each regional 
     office. Regional office directors should then be held 
     accountable for achieving those individual goals. The 
     performance among regional offices should also be compared. 
     The conferees recognize that it will take time to improve the 
     delivery of services to veterans, and need plans with annual 
     goals to measure the progress realized each year. The VA is 
     to prepare a detailed report for the Committees on 
     Appropriations on these goals and plans. The report is to be 
     submitted concurrently with the fiscal year 2000 budget 
     request.


                        NATIONAL CEMETERY SYSTEM

       Restores language proposed by the House and stricken by the 
     Senate transferring not to exceed $86,000 from the national 
     cemetery system appropriation to the general operating 
     expenses appropriation for expenses of the Office of 
     Resolution Management and the Office of Employment 
     Discrimination Complaint Adjudication, amended to transfer 
     not to exceed $90,000 ($84,000 for ORM and $6,000 for OEDCA). 
     Additional information on funding for these two offices is 
     included under the VA's administrative provisions section of 
     this report.


                      OFFICE OF INSPECTOR GENERAL

       Appropriates $36,000,000 for the Office of Inspector 
     General as proposed by the Senate, instead of $32,702,000 as 
     proposed by the House.
       Inserts language transferring not to exceed $30,000 from 
     the Office of Inspector General appropriation to the general 
     operating expenses appropriation for expenses of the Office 
     of Resolution Management ($28,000) and the Office of 
     Employment Discrimination Complaint Adjudication ($2,000). 
     Although the House and the Senate did not propose similar 
     language, the VA planned to seek a small amount of 
     reimbursement for the two new offices from this 
     appropriation. Additional information on funding for these 
     two offices is included under the VA's administrative 
     provisions section of this report.


                      CONSTRUCTION, MAJOR PROJECTS

       Appropriates $142,300,000 for construction, major projects 
     as proposed by the Senate, instead of $143,000,000 as 
     proposed by the House. The conference agreement includes the 
     following changes from the budget estimate:
       +$20,800,000 for ambulatory care improvements at the Louis 
     Stokes Cleveland VA Medical Center.
       +$25,200,000 for construction of an ambulatory care 
     addition at the Tucson VA Medical Center.
       +$7,500,000 for additional gravesite development at the 
     Jefferson Barracks National Cemetery.
       +$9,500,000 for nursing unit renovations at the Lebanon, 
     Pennsylvania VA Medical Center.
       -$17,700,000 from available unobligated balances in the 
     working reserve.
       Inserts language authorizing that not to exceed $125,000 of 
     unobligated funds in the working reserve in the construction, 
     major projects appropriation may be made available for 
     necessary expenses of the redevelopment of the Pershing Hall 
     building in Paris, France. The conferees expect that these 
     funds, and funds previously made available, will be totally 
     reimbursed in future years. Although not proposed by the 
     House or the Senate, the VA has requested this language.
       The conferees urge the Secretary to establish a new 
     national cemetery in Eastern Kentucky. The VA is to utilize 
     such sums as may be necessary to initiate the planning phase. 
     Planning should include site selection, acquisition, and 
     design. A report on the progress of the initial phase of this 
     project should be submitted to the Committees on 
     Appropriations by March 31, 1999.
       A mental health enhancement project has been proposed by 
     Veterans Integrated Service Network 17 for the Dallas VA 
     Medical

[[Page H9419]]

     Center. The conferees urge the Administration to give 
     consideration to including $24,200,000 for this project in 
     its fiscal year 2000 budget request.


       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

       Appropriates $90,000,000 for grants for construction of 
     state extended care facilities as proposed by the Senate, 
     instead of $101,000,000 ($80,000,000 in the grants for 
     construction of state extended care facilities account and an 
     additional $21,000,000 in Sec. 432 of the General Provisions) 
     as proposed by the House.


                       ADMINISTRATIVE PROVISIONS

       Restores language, section 109, proposed by the House and 
     stricken by the Senate renaming the Salisbury VA Medical 
     Center in North Carolina as the ``W. G. (Bill) Hefner 
     Salisbury Department of Veterans Affairs Medical Center.''
       Deletes language proposed by the Senate authorizing the 
     reimbursement of expenses for the Office of Resolution 
     Management and the Office of Employment Discrimination 
     Complaint Adjudication from other VA appropriations beginning 
     in fiscal year 1999. Funding for these two offices in fiscal 
     year 1999 is provided by language transferring amounts in 
     medical care ($27,420,000--$25,690,000 for ORM and $1,730,000 
     for OEDCA), national cemetery system ($90,000--$84,000 for 
     ORM and $6,000 for OEDCA), and Office of Inspector General 
     ($30,000--$28,000 for ORM and $2,000 for OEDCA) to the 
     general operating expenses appropriation. In addition, 
     $2,209,000 is assumed in the general operating expenses 
     appropriation for these activities. The House proposed 
     similar transfer language. The VA, on an informal basis, has 
     recently indicated the need for a 43 percent increase 
     ($9,812,000) above the funding level assumed in the fiscal 
     year 1999 budget request for ORM. The conferees question the 
     requirement for such a large increase and have provided a 
     more realistic addition of 22 percent. All funds for these 
     two offices should be requested in the general operating 
     expenses appropriation in fiscal year 2000.
       Inserts language, section 110, proposed by the Senate 
     authorizing the Secretary of Veterans Affairs to convey land 
     in Tuscaloosa County, Alabama, to the University of Alabama.
       Inserts new language, section 111, renaming the Cleveland 
     Department of Veterans Affairs Medical Center in Cleveland, 
     Ohio, as the ``Louis Stokes Cleveland Department of Veterans 
     Affairs Medical Center.'' The conferees are taking this 
     action in recognition of Congressman Stokes' long and 
     distinguished service in support of veterans and veterans 
     programs.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

       Inserts a modification to Senate report language requiring 
     HUD to provide beginning March 1, 1999, an annual review of 
     the HUD 2020 plan.
       Deletes direction to HUD to provide a report regarding 
     unexpended balances by January 15, 1999, as proposed by the 
     House.

                       Public and Indian Housing


                        Housing Certificate Fund

             (Including Transfers and Rescission of Funds)

       Appropriates $10,326,542,030 for the housing certificate 
     fund, instead of $10,240,542,030 as proposed by the House and 
     $10,013,542,030 as proposed by the Senate. The conference 
     agreement includes:
       --$9,600,000,000 for expiring section 8 contracts, as 
     proposed by the House instead of $9,540,000,000 as proposed 
     by the Senate;
       --$0 for section 8 amendments, as proposed by the Senate 
     instead of $97,000,000 as proposed by the House;
       --$10,000,000 for regional opportunity counseling, as 
     proposed by the House instead of $0 as proposed by the 
     Senate; and,
       --$283,000,000 for welfare-to-work section 8 rental 
     assistance vouchers, instead of $100,000,000 as proposed by 
     the House and $40,000,000 as proposed by the Senate.

     The conferees agree to fund 50,000 housing vouchers to 
     address concerns raised by the Administration that reforms 
     included in the public housing legislation attached to 
     this appropriation measure may unduly disadvantage very 
     low-income families on waiting lists. Though this is not 
     the intent of the reforms, there is no clear data on the 
     potential extent of this problem and the conferees want to 
     be sensitive to the inevitable fear of the unknown. 
     Therefore, HUD is directed to design a protocol that 
     tracks the impact of the various reform measures on very 
     low-income families on waiting lists, to analyze the 
     information and to report any findings and conclusions to 
     the Senate and House Banking committees and the House and 
     Senate VA, HUD and Independent Agencies subcommittees. HUD 
     should brief the Committees and Subcommittees about the 
     methodology they plan to utilize to meet this request by 
     March 1, 1999.
       Deletes language proposed by the House authorizing HUD to 
     waive any administrative requirements or any provision of the 
     United States Housing Act of 1937 with regard to welfare-to-
     work vouchers.
       Inserts a modification to clarify that the welfare-to-work 
     program is not intended to exclude families receiving time-
     limited tenant-based rental assistance under state or local 
     initiatives.
       Rescinds $1,650,000,000 from excess section 8 funds, 
     specifically from section 8 amendments and from the section 8 
     moderate rehabilitation program, instead of $1,400,000,000 as 
     proposed by the Senate.
       Inserts language proposed by the House to expand tenant 
     protection eligibility to families being relocated due to a 
     HOPE VI revitalization plan.
       Inserts a modification to report language proposed by the 
     House directing rather than urging HUD to revise its 
     Performance Plan to incorporate measurable goals and outcomes 
     for the welfare-to-work program and to include those goals in 
     HUD's 1999 Operating Plan.
       Like the House and Senate bills, the conference agreement 
     provides funding for so-called ``enhanced'' or ``sticky'' 
     vouchers, to be provided to residents who lose the benefit of 
     housing affordability restrictions when owners prepay 
     federally assisted mortgages. Because questions have been 
     raised as to whether these vouchers are renewable, the 
     conferees would like to emphasize their intention that 
     enhanced vouchers (funded under this or prior appropriations 
     bills) are renewable from year to year under the same terms 
     and conditions, and have included language clarifying this 
     point. Because appropriations for renewal of section 8 
     certificates and vouchers are now provided on an annual 
     basis, it is not possible for HUD or public housing 
     authorities to enter into binding commitments to provide this 
     assistance for terms longer than one year. However, the 
     Appropriations Committees have made it a high priority to 
     ensure that sufficient funding is provided each year to allow 
     for renewal of all expiring section 8 assistance, including 
     enhanced vouchers.
       The conferees agree to include a technical amendment 
     clarifying the terms of enhanced vouchers. Under this 
     amendment, if the income of a family with such a voucher 
     drops significantly (because of job loss, retirement or death 
     of a family member, for example), the rental payment required 
     of that family will be reduced, so that the percentage of 
     income paid in rent by that family does not exceed the 
     greater of (1) the percentage paid in rent before the 
     mortgage prepayment that triggered the enhanced voucher, or 
     (2) the normal section 8 payment standard of 30 percent. The 
     conferees intend HUD to issue regulations or other 
     appropriate guidance implementing this provision.


                 section 8 reserve preservation account

       Deletes language proposed by the Senate requiring HUD to 
     collect amounts recaptured from section 8 tenant-based 
     assistance.


                      public housing capital fund

                     (including transfers of funds)

       Appropriates $3,000,000,000 for the public housing capital 
     fund, as proposed by the House instead of $2,550,000,000 as 
     proposed by the Senate.
       Inserts language, as an administrative provision, 
     prohibiting funds from being used to support any units not 
     funded prior to October 1, 1998, except for those funded 
     under the HOPE VI program. Appropriated amounts for the 
     Capital Fund and the Operating Fund are predicated on the 
     current number of public housing units. Adding thousands of 
     units of formerly state or locally subsidized housing, as 
     included in Title V, would cause a significant hardship to 
     existing developments by decreasing available funds. This 
     prohibition applies to both the Public Housing Capital and 
     Operating Funds.


                     public housing operating fund

       The conferees support the efforts of public housing 
     authorities to use private funds to make capital improvements 
     in order to lower energy costs and believe this program could 
     lead to significant long-term savings for a small investment. 
     To accomplish this, HUD should consider the savings that are 
     recognized from existing energy performance contracts and 
     encourage future contracts under the Performance Funding 
     System and the incentives provided by section 118 of the 
     Housing and Community Development Act of 1987. In addition, 
     HUD should educate field office staff as to the usefulness of 
     this program.


             drug elimination grants for low-income housing

                     (including transfer of funds)

       Appropriates $310,000,000 for drug elimination grants, as 
     proposed by the Senate instead of $290,000,000 as proposed by 
     the House. Of the amount provided, $20,000,000 is for the New 
     Approach Anti-Drug program, as proposed by the Senate.
       The conferees are concerned with the overall implementation 
     and effectiveness of the New Approach Anti-Drug program and, 
     therefore, expect the Department to provide the committees 
     with a report on both the implementation and effectiveness of 
     the program by May 15, 1999.


          revitalization of severely distressed public housing

                               (HOPE VI)

       Appropriates $625,000,000 for the revitalization of 
     severely distressed public housing program, an increase of 
     $25,000,000 above the House and Senate recommendations. The 
     conferees agree to increase the appropriation in recognition 
     of the significant contributions the program makes to 
     replacing nonviable public housing with affordable homes and 
     apartment buildings that are safe, that fit into the 
     neighborhood landscape, and that provide needed services for 
     the families who live in them. The appropriation includes 
     $15,000,000 for technical assistance, as proposed by the 
     Senate instead of $10,000,000 as proposed by the House.
       Inserts a restriction requiring that funds appropriated to 
     this account are used for

[[Page H9420]]

     HOPE VI program activities, as proposed by the House.


                  native american housing block grants

                     (including transfers of funds)

       Appropriates $620,000,000 for Native American block grants, 
     as proposed by the House instead of $600,000,000 as proposed 
     by the Senate.
       Limits the guarantee of the Title VI Indian federal 
     guarantees program to $54,600,000, as proposed by the House 
     instead of $217,000,000 as proposed by the Senate.
       Transfers $200,000 to salaries and expenses for 
     administrative costs associated with the Title VI guarantee 
     program, as proposed by the House.
       Directs HUD to provide annual, rather than semi-annual, 
     reports to the Committees evaluating the Native American 
     housing block grant program.


           indian housing loan guarantee fund program account

                     (including transfer of funds)

       Transfers $400,000 to salaries and expenses for 
     administrative costs associated with the Indian housing loan 
     guarantee program, as proposed by the House.


                 rural housing and economic development

       Appropriates $25,000,000 for rural housing and economic 
     development, instead of $35,000,000 as proposed by the 
     Senate. The conference agreement provides:
       --$4,000,000 for capacity building at the state and local 
     level, of which $1,000,000 is for development of a 
     clearinghouse of ideas for innovative strategies for rural 
     housing and economic development and $3,000,000 is for direct 
     capacity building funding to local rural nonprofits, 
     community development corporations and Indian tribes; and,
       --$21,000,000 to fund Indian tribes, state housing finance 
     agencies, state community and/or economic development 
     agencies, local rural nonprofits and community development 
     corporations for innovative housing and economic development 
     activities in rural areas. Of this amount, $5,000,000 is for 
     seed funding for Indian tribes, nonprofits and community 
     development corporations that are located in areas that have 
     limited capacity for the development of rural housing and for 
     economic development.
       The conferees urge HUD, in consultation with USDA, to award 
     these funds not necessarily to the poorest of all 
     communities, but to develop balanced guidelines that 
     recognize need but also that recognize those grantees and 
     projects that are innovative and forward-looking and that can 
     be duplicated as a successful model to meet rural needs 
     throughout the country.

                   Community Planning and Development


              Housing Opportunities for Persons with Aids

       Appropriates $215,000,000 for housing opportunities for 
     persons with AIDs, instead of $204,000,000 as proposed by the 
     House and $225,000,000 as proposed by the Senate.
       Deletes language proposed by the Senate requiring HUD to 
     submit a report to Congress summarizing all technical 
     assistance provided in this account. The conferees, however, 
     direct HUD to provide this information to the VA, HUD and 
     Independent Agencies Subcommittees.
       The conferees agree to reiterate the request, proposed in 
     both the House and Senate reports, for a reexamination of 
     this program--particularly its formula for distributing 
     funds.
       Under current law, 90 percent of HOPWA funds are 
     distributed on a formula basis. States and metropolitan areas 
     qualify for funding when the cumulative number of AIDS cases 
     in the locality exceeds 1,500. Three quarters of the formula 
     funds are then distributed among all qualifying states and 
     metropolitan areas based on proportionate shares of 
     cumulative cases. The remaining one quarter is distributed to 
     qualifying metropolitan areas with above-average current 
     incidence of AIDS.
       This approach of giving states and metro areas entitlement 
     to a portion of formula funds when the cumulative number of 
     AIDS cases (since the early 1980s) crosses a fixed numerical 
     threshold leads to an increase in the number of qualifying 
     jurisdictions each year. This requires available funds to be 
     spread more thinly each year. The rising number of qualifying 
     jurisdictions is a major reason why the Appropriations 
     Committees have sought to provide annual increases for this 
     program, but the conferees are not at all confident that 
     budgetary conditions will allow future funding to keep pace 
     with the annual increases in eligible jurisdictions.
       In addition, as more metro areas cross the threshold and 
     qualify, the rest of the state often loses all funding, as 
     subtracting the metro area often brings the number of cases 
     in the balance of the state below the threshold. The 
     conferees have once again included temporary grandfathering 
     language to preserve funding for another year for states 
     caught in these circumstances, but believe a more permanent 
     solution is needed.
       The conferees appreciate the detailed report submitted by 
     the Department in response to requests in last year's 
     appropriations reports. However, that report recommended 
     against a change in the formula, primarily because of the 
     importance of maintaining stability in this program. The 
     conferees recognize the virtue of stability, but point out 
     that aspects of the present system are not particularly 
     stable--in fact, the ``bonus'' portion of the formula (the 
     portion that uses current incidences of AIDS cases relative 
     to the current national average) produces wide annual swings 
     in funding for some jurisdictions. More importantly, as noted 
     above, the conferees are concerned that the present system 
     cannot be sustained without annual appropriations increases 
     larger than can be realistically expected.
       For all these reasons, the conferees urge the authorizing 
     committees, the Department, and the AIDS housing community to 
     consider whether it is time to redesign the basic funding 
     formulas for the HOPWA program--giving particular attention 
     to means of basing eligibility and allocations on better 
     measures of relative current need, and perhaps also 
     considering whether a competitive element should be 
     introduced so as to channel some extra funds to areas with 
     particularly well developed and successful programs.
       None of the above is intended to express doubt concerning 
     the very real needs that the HOPWA program serves. Rather, 
     the conferees are concerned that the current funding approach 
     may be unsustainable and anxious that scarce funding be 
     distributed so as to address the highest priority needs and 
     reward the best performing programs.

                   Community Development Block Grants


                     (Including transfers of funds)

       Appropriates $4,750,000, 000 for community development 
     grants, as proposed by the Senate instead of $4,725,000,000 
     as proposed by the House. The conferees agree to the 
     following earmarks:
       --$50,000,000 for section 107 grants, as proposed by the 
     House instead of $32,000,000 as proposed by the Senate. The 
     conference agreement provides the following earmarks:
       --$3,000,000 is for community development work study,
       --$10,000,000 is for historically black colleges and 
     universities with $1,000,000 for Dillard University in New 
     Orleans, Louisiana,
       --$7,500,000 is for the Community Outreach Partnerships 
     program,
       --$7,000,000 is for insular areas,
       --$7,500,000 is for technical assistance,
       --$8,500,000 is for management information systems, and
       --$6,500,000 is for Hispanic Serving Institutions with 
     $850,000 for the San Bernardino Community College District;
       --$3,000,000 is for 1999 Special Olympics World Summer 
     Games;
       --$12,000,000 is for the City of Oklahoma City, Oklahoma, 
     to deal with the costs of the Oklahoma City bombing;
       --$15,000,000 is for Capacity Building for Community 
     Development and Affordable Housing, authorized by section 4 
     of P.L. 103-120, as in effect before June 12, 1997. The 
     conferees note that the capacity building program has been in 
     place for several years, and believe that an assessment would 
     be appropriate. Accordingly, the conferees request the 
     Department to report to the authorizing and appropriations 
     committees, no later than April 1, 1999, regarding its 
     assessment of the effectiveness of this program and 
     recommendations for the future. The report should address, 
     among other matters, whether eligibility for grants should be 
     expanded to other specified organizations or otherwise 
     changed, or whether grants should be awarded through an open 
     competition.
       --$55,000,000 for supportive services, as proposed by the 
     Senate instead of $50,000,000 as proposed by the House. Of 
     that amount, $20,000,000 is earmarked for service 
     coordinators and congregate services as proposed by the House 
     instead of $10,000,000 as proposed by the Senate;
       --$20,000,000 for grants to eligible grantees under section 
     11 of the Self-Help Housing Opportunity Program Extension Act 
     of 1996, as proposed by the House, and $7,500,000 for Habitat 
     for Humanity International for capacity building activities;
       --$225,000,000 for economic development grants, instead of 
     $50,000,000 as proposed by the House and $85,000,000 as 
     proposed by the Senate. The conferees agree to the following 
     targeted economic development grants:
       --$500,000 for the Chabot Observatory and Science Center in 
     the City of Oakland, California for a science education 
     center;
       --$500,000 to the City of Oceanside, California for 
     activities associated with the City of Oceanside's 
     Redevelopment Project;
       --$600,000 to the Alameda County Housing Agency--the 
     Housing and Community Development Department for the Alameda 
     County Homeless Base Conversion in Oakland, California;
       --$500,000 to Golden Gate University in San Francisco, 
     California for the Golden Gate University Agricultural 
     Business Resource Center project in Monterrey, California;
       --$500,000 to the Inland Valley Development Agency for San 
     Bernardino International Airport in San Bernardino, 
     California for activities associated with the base conversion 
     project;
       --$500,000 to the City of Los Angeles, California for the 
     activities associated with the economic redevelopment of the 
     City of Los Angeles' Santa Barbara Plaza project;
       --$600,000 to the University of San Diego in San Diego, 
     California for the development of the University of San Diego 
     Science and Education Research Center to provide education 
     and training of low income students;
       --$100,000 to CALSTART in the Los Angeles International 
     Airport in Los Angeles, California for an electric vehicle 
     rental demonstration;
       --$1,000,000 to the Lake Champlain Science Center in 
     Burlington, Vermont for development activities;
       --$1,000,000 to the City of Barre, Vermont for downtown 
     development;

[[Page H9421]]

       --$300,000 to the Vermont Housing and Conservation Board 
     for affordable housing activities in Bennington, Vermont;
       --$200,000 to Burlington Community Land Trust for a multi-
     generational center in Burlington, Vermont;
       --$250,000 to the Vermont Technical College, in Randolph, 
     Vermont for the Vermont Technology Workforce Training 
     Initiative;
       --$250,000 to the Town of Wells River, Vermont for downtown 
     redevelopment activities;
       --$800,000 to the City of Dubuque, Iowa for work associated 
     with the development of the Upper Mississippi River National 
     Wildlife and Fish Refuge Interpretive Center in Dubuque, 
     Iowa;
       --$1,000,000 to the City of Sioux City, Iowa for the 
     restoration of the Warrior Hotel in Sioux City, Iowa to be 
     used for adult day care and other direct services;
       --$700,000 to City of Cedar Rapids, Iowa for revitalization 
     in the Cedar Rapids, Iowa Southside neighborhood development 
     project;
       --$500,000 to the City of Waterloo, Iowa for affordable 
     housing development in Waterloo, Iowa
       --$750,000 for the New Jersey Community Development 
     Corporation to rehabilitate a site in Paterson, New Jersey to 
     establish an employment opportunity center;
       --$750,000 to Cumberland County, New Jersey for the City of 
     Bridgeton, New Jersey redevelopment project;
       --$500,000 to Covenant House for the construction of a 
     residential and community service center in Newark, New 
     Jersey;
       --$500,000 to New Community Corporation to develop 
     abandoned property in Newark, New Jersey;
       --$500,000 for the Lower Essex Street Waterfront 
     redevelopment project in Rahway, New Jersey;
       --$3,000,000 for the construction of a Science/Computer 
     teaching center at Wheeling Jesuit University in Wheeling, 
     West Virginia;
       --$2,000,000 to Hawaii Housing Authority for the work 
     associated with the construction of the Community Resource 
     Center at Kuhio Homes/Kuhio Park Terrace in Honolulu, Hawaii;
       --$250,000 to the County of Hawaii for infrastructure 
     development in Puna, Hawaii;
       --$250,000 to the County of Maui, Hawaii for the 
     acquisition of the Malama Family Recovery Center to provide 
     counseling and support to at risk women of substance abuse;
       --$500,000 to the City of Ozark, Arkansas for the 
     development of its downtown area as a tourist destination;
       --$500,000 to the Turtle Mountain Community College in 
     North Dakota, for the Turtle Mountain Economic Development 
     and Education Complex;
       --$500,000 to the Rural Economic Area Partnership 
     Investment Board in North Dakota for rural and economic 
     development activities;
       --$250,000 to the Atlantic Beach Community Development 
     Corporation in Horry County, South Carolina for activities 
     associated with economic development in Horry County, South 
     Carolina;
       --$250,000 to the School of Public Health at the University 
     of South Carolina in Columbia, South Carolina to consolidate 
     its programs in a new central location;
       --$500,000 to Dillon County, South Carolina for the 
     restoration of the Dillon County Library;
       --$1,500,000 to the City of Milwaukee for the second phase 
     of the riverwalk development in Milwaukee's Historic Third 
     Ward;
       --$1,000,000 to the City of Sioux Falls, South Dakota for 
     the downtown restoration and redevelopment purposes;
       --$400,000 to the Greater Huron Development Corporation for 
     economic development efforts in the Huron, South Dakota 
     community;
       --$500,000 to the Northern Hills Community Development 
     Corporation for economic development efforts in the Lead, 
     South Dakota area;
       --$350,000 to the City of Woonsocket, South Dakota for 
     infrastructure improvements at the city's industrial park;
       --$350,000 to the City of Mobridge, South Dakota for 
     economic development expansion and development purposes;
       --$200,000 to the Mitchell Economic Development Corporation 
     to construct an access road and make improvements at the 
     Railroad Industrial Park in Mitchell, South Dakota;
       --$100,000 to the Sioux Falls Downtown Economic Development 
     Incentive Fund for business development in the City of Sioux 
     Falls, South Dakota;
       --$200,000 to the City of Webster, South Dakota for 
     infrastructure improvements to the community's industrial 
     park;
       --$200,000 to the City of Siseton, South Dakota for 
     business development purposes;
       --$500,000 the Boston Symphony Orchestra in Boston, 
     Massachusetts for the restoration of the Boston Symphony 
     Hall;
       --$750,000 to the Antelope Valley Partnership for the 
     redevelopment of Lincoln, Nebraska;
       --$250,000 to the Inner City Education and Recreation 
     Foundation in Chicago, Illinois to rehabilitate vacant inner 
     city parcel;
       --$650,000 to Bethel New Life in Chicago, Illinois for 
     economic development efforts at the former St. Anne's 
     hospital site in Chicago, Illinois;
       --$500,000 to the Enterprise Foundation in Columbia, 
     Maryland for multi-state welfare-to-work child care 
     initiative;
       --$250,000 for development efforts in the Scottsdale 
     subdivision of Harvey, Louisiana;
       --$500,000 to the East Baton Rouge Health Alliance in East 
     Baton Rouge Parish, Louisiana for economic development, 
     health promotion and disease prevention;
       --$250,000 to the Wing Luke Museum in the international 
     district of Seattle, Washington for rehabilitation and 
     expansion of the Wing Luke Museum;
       --$500,000 to the City of Seattle, Washington for the 
     rehabilitation and new construction associated with the Noji 
     Gardens Homesight project;
       --$100,000 to the Mountain Association for Community 
     Economic Development for economic development activities in 
     Kentucky;
       --$750,000 to the Boys and Girls Club of Las Vegas, Nevada 
     for activities associated with the renovation and expansion 
     of the existing education and recreation facility;
       --$900,000 to the City of Tampa, Florida for the 
     refurbishment of the West Tampa El Centro Espanol Building;
       --$500,000 to the City of Portland, Oregon for Phase 2 of 
     the Portland Central City Streetcar project to provide 
     service to the emerging North Macadam district;
       --$500,000 to the Navajo Nation in Shiprock, New Mexico for 
     a multi-purpose center to be used as a safe haven for at-risk 
     Indian juveniles;
       --$250,000 to the Bayview Citizens for Social Justice in 
     Norhthampton County, Virginia for economic development 
     activities;
       --$250,000 to the Museum for African Art in New York, New 
     York;
       --$1,500,000 to Prince George's County Maryland for work 
     associated with the Manchester Square Redevelopment Project 
     in Suitland, Maryland;
       --$1,500,000 to Montgomery County, Maryland for economic 
     development and revitalization in the southern Silver Spring 
     business district;
       --$1,500,000 to the Maryland Department of Housing and 
     Community Development to establish a national Pediatric 
     Functional Imaging Center, to serve as a job training site 
     for individuals with neurological impairments, located in a 
     federally designated empowerment zone;
       --$100,000 to Payne Memorial Outreach, Inc. in Baltimore, 
     Maryland for economic development efforts related to the 1701 
     Madison Avenue Redevelopment Project;
       --$400,000 to Garret County, Maryland, for activities 
     related to development activities associated with the 
     Highview Apartments Redevelopment Project in Oakland, 
     Maryland;
       --$250,000 to the Baltimore City Unity Partnership, Inc. 
     for economic development and community revitalization 
     activities in Baltimore, Maryland;
       --$750,000 to the Maryland State Department of Housing and 
     Community Development for relocation of residents of Wagners 
     Point community in Baltimore, Maryland;
       --$300,000 to the Santa Fe, NM Neighborhood Housing Service 
     to create the Self-Help Housing Loan Fund;
       --$300,000 to the City of Kansas City, KS to demolish the 
     Huron Building and the Security Bank Building;
       --$1,600,000 to the St. Stephen Lifestyle Enrichment Center 
     Campus for renovations in Louisville, KY;
       --$750,000 to the City of Riverside, CA for the expansion 
     of the Goeske Senior and Disabled Citizens Center;
       --$100,000 to the City of Riverside, CA for Phase II of the 
     Citrus Park.
       --$150,000 to the County of Riverside, CA for the Riverside 
     School of the Arts at Riverside Community College;
       --$1,000,000 to the City of San Diego, CA for the San Diego 
     Childrens Convalescent Hospital;
       --$200,000 to Ascension Parish, LA for parks and recreation 
     development;
       --$100,000 to the City of Plaquemine, LA for the 
     development of the City Activity Center;
       --$50,000 to the City of Plaquemine, LA for the historic 
     train depot;
       --$250,000 to the Los Angeles County Development 
     Commission, CA for the Growing Experience at the Carmelitos 
     Center;
       --$250,000 to the Los Angeles County Development 
     Commission, CA for the Telemedicine project at the Carmelitos 
     Center;
       --$350,000 to Marshall County, AL for the Lewis Mountain 
     drinking water infrastructure improvements;
       --$1,000,000 to Etowah, AL for the Lake Gadsden 
     infrastructure improvements;
       --$500,000 to the Nevada Rural Health Centers, NV for the 
     Nevada Mobile Mammography unit for a mammovan;
       --$250,000 to Westhampton Beach, NY for the renovation and 
     revitalization of the Westhampton Beach Performing Arts 
     Center;
       --$1,000,000 to Ball State University, IN for the Muncie-
     Delaware County Workforce Development Initiative;
       --$1,000,000 to Indiana University in Bloomington, IN for 
     the renovation of the Midwest Proton Radiation Institute;
       --$450,000 to Rural Enterprises in the City of Durant, OK 
     for the purpose of assisting businesses in economically 
     distressed rural areas;
       --$500,000 to the City of Topeka, KS for drinking water 
     infrastructure;
       --$250,000 to Pittsburg State University, KS for facilities 
     improvements at the Kansas Technology Center;
       --$500,000 to Riverton, UT for the restoration of the civic 
     center;
       --$650,000 to the City of Bernalillo, NM for the completion 
     of the youth center;

[[Page H9422]]

       --$500,000 to Rampo College of New Jersey, NJ for the 
     construction of the Center for Performing and Visual Arts;
       --$1,000,000 to CALSTART for creation and relocation of 
     business incubator activities associated with the cities of 
     Pasadena, CA and Camarillo, CA;
       --$250,000 to Elizabethtown, KY for the revitalization of 
     the State Theater;
       --$250,000 to Liberal, KS for the revitalization effort of 
     the Original Town of Liberal Revitalization Corporation;
       --$100,000 to Gamaliel, KY for construction costs 
     associated with the Gamaliel Fire House;
       --$100,000 to Tompkinsville, KY for construction costs 
     associated with the Community Development Training Center;
       --$130,000 to Columbia, KY for construction of the Adair 
     County Community Development Training Center to retrain 
     displaced textile workers in the area;
       --$100,000 to the City of Russellville, KY for water system 
     infrastructure improvements;
       --$20,000 to Central City, KY for the GISH Playground site 
     improvements as well as the purchase of new equipment;
       --$300,000 to the Ewing Naval Warfare Center Reuse 
     Committee, NJ for economic redevelopment of the area;
       --$50,000 to Somerset County Board of Social Services, NJ 
     for AGAPE House Homeless Shelter;
       --$500,000 to Cathedral City, CA for infrastructure 
     improvement needs related to the bridge over crossing at 
     Interstate 10 and Date Palm Drive;
       --$500,000 to the University of New Hampshire, NH for 
     library and laboratory enhancements as well as 
     telecommunications access;
       --$500,000 to the University of Montana, Missoula, MT for 
     the planning, design and establishment of a Research 
     Development Enterprise;
       --$1,250,000 to City of Charlotte, NC for economic 
     development in the Wilkinson Boulevard Corridor;
       --$250,000 to the Arkansas Enterprise Group of Arkadelphia, 
     AR to address child care issues in conjunction with welfare 
     to work initiatives;
       --$500,000 to County of Tulare, CA for the Tulare 
     International Trade Center;
       --$1,000,000 to the City of Youngstown, OH for the 
     Southside Medical Center campus;
       --$600,000 to the City of Kendleton, Fort Bend County, TX 
     for upgrading the sewer and water system;
       --$500,000 to the nonprofit 1490 Enterprises Community 
     Center in Buffalo, NY for renovation of the community center;
       --$100,000 to Wayne State University, MI for the renovation 
     of Hilberry Theater;
       --$1,000,000 to Wittenberg University, OH for Phase I of 
     the science facility renovation project;
       --$500,000 to County of Fresno, CA for Westcare's Fresno 
     County Community Healthcare campus to provide low-income 
     health care services;
       --$1,000,000 to the Tampa Port Authority, FL for economic 
     development and revitalization efforts;
       --$1,500,000 to the County of Sacramento, CA for the 
     Sacramento Urban League Workforce Development Center;
       --$500,000 to Houghton College, NY for the costs associated 
     with the development of an academic Fine Arts Center;
       --$500,000 to the County of Fairfax, VA for revitalization 
     efforts at Bailey's Crossroads and Annandale, VA;
       --$200,000 to Abington Township, PA for the Abington 
     Township library construction and renovation project;
       --$530,000 to the Norristown Borough, PA for construction 
     of a parking garage;
       --$10,000 to the Wissahickon Public Library, Blue Bell, PA 
     for technology infrastructure;
       --$10,000 to the Conshohocken Public Library, Borough of 
     Conshohoken, PA for technology infrastructure;
       --$175,000 to Montgomery County, PA for the acquisition of 
     a senior adult activity center;
       --$25,000 to Conshohocken Borough, PA for the construction 
     of a Veterans memorial;
       --$50,000 to Montgomery County, PA for the Hatboro Borough 
     library renovation and construction project;
       --$250,000 to the City of Stockton, CA for the acquisition 
     and rehabilitation of the Old Stockton Hotel;
       --$250,000 to the Edison Welding Institute, Columbus, OH 
     for a specialized job training program related to welfare to 
     work initiatives in central Ohio;
       --$350,000 to the City of Citrus Heights, CA for 
     transitional cost of the City's recent incorporation;
       --$125,000 to the City of Folsom, CA for the Brownfields 
     Redevelopment project at Folsom City Landfill and Corporation 
     Yard;
       --$125,000 to Placer County, CA for the regional wastewater 
     treatment facility;
       --$250,000 to the City of Newhall, CA for the Newhall 
     Metrolink Station;
       --$250,000 to the City of Lancaster, CA for construction of 
     the National Soccer Activity Center;
       --$250,000 to the City of Lancaster, CA for costs 
     associated with the 50th District Agricultural Association 
     Fairgrounds relocation;
       --$250,000 to Ventura County, CA for construction of Rail 
     Tunnel 26;
       --$750,000 to the City of Sardis, MS for a wastewater 
     treatment facility;
       --$250,000 to the Town Silver City, NM for wastewater 
     treatment facility upgrades;
       --$1,000,000 to Holmes County, OH for the Northeast Ohio 
     Health Outreach Network;
       --$1,000,000 to Newstead, NY for construction costs 
     associated with a library;
       --$350,000 to the City of Hammond, LA for historic Columbia 
     Theater renovations;
       --$750,000 to City Park in New Orleans, LA for 
     infrastructure and renovation needs;
       --$750,000 to the City of Covington, LA for the Community 
     Workforce Development Center;
       --$350,000 to Grace House in New Orleans, LA for facility 
     improvements;
       --$1,000,000 to the Audubon Institute Living Sciences 
     Museum in New Orleans, LA;
       --$300,000 to the University of New Orleans, LA for the 
     Welfare Entrepreneurship program;
       --$500,000 to the County of San Bernardino, CA for the 
     Shack Attack program in the Morongo Basin and other desert 
     areas in the County;
       --$1,000,000 to the City of Redlands, CA for the 
     redevelopment initiatives near the historic Fox Theater;
       --$500,000 to the City of Redlands, CA for the 
     reconstruction of the Alabama Street Bridge;
       --$1,000,000 to the City of Highland, CA for construction 
     of the Highland Community Center;
       --$1,000,000 to the City of Loma Linda, CA for 
     infrastructure improvements at Redlands Boulevard and 
     California Streets;
       --$300,000 to the Town of Apple Valley, CA for the Happy 
     Trails Chidrens Foundation for site improvements at Cooper 
     Home;
       --$250,000 to the County of San Bernardino, CA for a public 
     park facility to serve the Children's Forest, Hoffman 
     Elementary School, Rim of the World Recreation and Park 
     District and local businesses;
       --$500,000 to the Boys and Girls Club of Redlands for the 
     development of a youth facility, Redlands, CA;
       --$375,000 to Clearfield Borough, PA for the Dimeling Hotel 
     renovation project for senior living apartments;
       --$2,750,000 to the Olympic Regional Development Authority, 
     NY for upgrades at Mt. Van Hoevenberg Sports Complex;
       --$750,000 to St. Josephs Hospital Health Center for the 
     Central New York Cardiac Care and Hemodialysis Enhancement 
     Center in Syracuse, NY;
       --$2,000,000 to the Childrens Center of Brooklyn, NY for 
     the construction of a facility to house educational and 
     therapeutic programs for disabled preschool children;
       --$400,000 to the City of Syracuse, NY for the Museum of 
     Science and Technology;
       --$100,000 to the Sally Coyne Health Care Center for 
     Independence in North Syracuse, NY;
       --$200,000 to the Boys and Girls Club in Syracuse, NY for 
     the renovation of existing facilities;
       --$500,000 to Wyoming County, PA for the construction of a 
     residential and treatment facility for autistic adults;
       --$500,000 to City of Scranton, PA for the Goodwill 
     Industries elderly housing project at the former North 
     Scranton Intermediate School;
       --$500,000 to the City of Scranton, PA to replace the 
     treatment and residential facility in Scranton which serves 
     and houses children in need of mental health, behavioral, and 
     protective services;
       --$500,000 to Lacawanna County, PA to improve the site 
     tipple and yard in Lacawanna County Coal Mine;
       --$500,000 to Morristown, NJ for economic redevelopment 
     initiatives;
       --$500,000 to Science Park in Newark, NJ for academic and 
     infrastructure needs;
       --$500,000 to the Stevens Institute of Technology 
     Laboratory Business Innovation in Hoboken, NJ;
       --$500,000 to the University of Oklahoma, OK for Phase I of 
     planning for incubator operations at the Advanced Research 
     Park;
       --$500,000 to the City of San Juan Capastrano, CA for 
     construction of a Boys and Girls Club of Capastrano Valley;
       --$1,250,000 to the University of Connecticut, for the 
     continued construction of the Agriculture Biotechnology 
     Laboratory in Storrs, CT;
       --$500,000 to Montgomery County, MD for the Easter Seals 
     Break-Away Senior Day Care Center;
       --$1,500,000 to the Detroit Rescue Mission Ministries for 
     infrastructure repairs, Detroit, MI;
       --$1,000,000 to the Mill Springs Battlefield Association 
     for the construction of an interactive visitors center and 
     museum at the Mill Springs Battlefield in Pulaski County, KY;
       --$225,000 to the City of Logan, UT for the Logan City 
     Trails/Transportation project;
       --$75,000 to the City of Logan, UT for the Logan City 
     Willow Park Zoo;
       --$200,000 to the City of Layton, UT for the completion of 
     the Kays Creek Corridor project in northeast Layton;
       --$500,000 to the Haymarket Center's Community and Family 
     Learning Center, Chicago, IL for the comprehensive substance 
     abuse treatment center;
       --$650,000 to the City of Jacksonville, FL for the 
     Talleyrand Redevelopment Project;
       --$100,000 to the City of Jacksonville Beach, FL for water 
     and wastewater infrastructure improvements;
       --$500,000 to the University of Cincinnati Medical Center, 
     OH for an addition to and renovation of the Medical Sciences 
     Building;
       --$250,000 to the County of San Bernardino, CA for the 
     Running Springs Downtown Revitalization Project;

[[Page H9423]]

       --$750,000 to the non-profit Charter Schools Development 
     Corporation for working capital and design of a credit 
     enhancement program required to leverage private financing 
     for charter school facilities using the District of Columbia 
     as a model for a national approach;
       --$500,000 to Pacific Union College, Angwin, CA for the 
     Nappa Valley Resource Center development a welfare to 
     technology job training program;
       --$1,000,000 to the California State University, Long 
     Beach, CA to implement an affordable, disaster resistant, 
     energy efficient housing program in conjunction with the City 
     of Omaha, NE;
       --$275,000 to Warren County, VA for asbestos remediation 
     and lead paint removal at the Avtex Superfund Site in Front 
     Royal, VA.
       --$2,500,000 for the University of Alaska Museum, 
     Fairbanks, Alaska;
       --$350,000 for the Noel Wien Memorial Library in Fairbanks, 
     Alaska;
       --$2,500,000 for the Alaska Vocational Technical Center in 
     Seward, Alaska for a maritime vessel simulator;
       --$500,000 for the Homer Dock in Homer, Alaska;
       --$2,000,000 for the University of Missouri for the Center 
     for Life Sciences;
       --$700,000 for the Little Sisters of the Poor in Kansas 
     City, Missouri for the renovation and reconstruction of 
     affordable housing;
       --$350,000 for the Guadalupe Center in Kansas City, 
     Missouri;
       --$4,000,000 for the City of St. Louis for the Washington 
     Avenue Loft District Streetscape Improvements, consistent 
     with the 1998 Downtown Now! Plan;
       --$1,500,000 for Provo, Utah the revitalization of the 
     historic downtown business center;
       --$500,000 for the Redevelopment Agency of Salt Lake City, 
     Utah for the redevelopment of the Gateway District;
       --$500,000 for SHARE House to build a new non-medical 
     detoxification center in Missoula County, Montana;
       --$750,000 for the Samuel U. Rodgers Community Health 
     Center in Kansas City, Missouri, for community revitalization 
     and capital improvement projects;
       --$250,000 for the Family Health Center in Columbia, 
     Missouri for the delivery of health care services for low-
     income patients;
       --$250,000 for the Children's Center of Southwest Missouri 
     for capital improvement projects;
       --$2,500,000 for the City of Kansas City for the Liberty 
     Memorial Monument for renovation;
       --$1,000,000 for the City of Durango, Colorado to develop 
     the Cultural Arts Complex of southwest Colorado;
       --$1,000,000 for the City of Aurora for the redevelopment 
     of the Fitzsimmons Army base;
       --$1,000,000 for the Arapahoe House in Denver, Colorado for 
     rehabilitation needs and services.
       --$600,000 for Bethune-Cookman College Daytona Beach, 
     Florida;
       --$1,000,000 for the City of Brookhaven, Mississippi for 
     renovating historic Whitworth College buildings in 
     Brookhaven, Mississippi;
       --$500,000 for the City of Jackson, Mississippi for 
     creating a youth entrepreneurship program;
       --$250,000 for renovation, accessibility and asbestos 
     remediation for the Wellstone Neighborhood Center, Wellstone, 
     Missouri;
       --$900,000 to support homeless initiatives, with $300,000 
     for the Bond Center in Pine Lawn, Missouri, $300,000 for the 
     Kitchens in Springfield, Missouri and $300,000 for Rose 
     Brooks in Kansas City, Missouri;
       --$500,000 for Nottoway County, Virginia for the 
     revitalization of its governmental complex.
       --$1,000,000 for Project Social Care in Brooklyn, New York;
       --$1,000,000 for Touro Law Center in Long Island, New York 
     for its relocation project;
       --$2,000,000 for the Hispanic Cultural Center in 
     Albuquerque, New Mexico;
       --$600,000 for the Jardin de los Ninos homeless daycare 
     center in Las Cruces, New Mexico;
       --$2,000,000 for the North Carolina State Museum of Natural 
     Resources for the construction and installation of 
     interactive natural history exhibits;
       --$300,000 for the City of Rockingham, North Carolina for a 
     Neighborhood Level Park;
       --$300,000 for Richmond County, North Carolina for a 
     neighborhood park;
       --$250,000 for the Beech Glenn Community of Madison County, 
     North Carolina for a community library, daycare, adult 
     education, recreational activities and facilities for youth 
     leagues;
       --$250,000 for Buncombe Technical Community College, North 
     Carolina for a small business incubator;
       --$250,000 for Blue Ridge Community College, North Carolina 
     for the Blue Ridge Environmental Training Center;
       --$250,000 for the Aycock Recreational Complex in 
     Henderson, North Carolina;
       --$250,000 for Edenton, North Carolina for waterfront 
     renovation;
       --$2,000,000 for the Pacific Science Center in Seattle, 
     Washington;
       --$500,000 for the renovation of the opera house at 
     Enosburg, Falls, Vermont;
       --$500,000 for Crawford County, Georgia for a community 
     development center in Roberta, Georgia;
       --$500,000 for a community development center/courthouse 
     annex project in Crawford county, Georgia for use in 
     facilitating increases in social service needs associated 
     with significant population growth;
       --$1,000,000 for the King Urban Life Center in Buffalo, New 
     York for an early childhood school and community center;
       --$1,400,000 for Columbia University for its Audubon III 
     Project in New York City;
       --$2,500,000 to the City of Kellogg, ID for the restoration 
     of Milo Creek in Kellogg and Wardner, Idaho;
       --$2,000,000 for Campbellsville University in Kentucky to 
     implement a job training partnership;
       --$2,000,000 for Jarrell, Texas for a public park and a 
     storm shelter;
       --$2,500,000 for a new science and mathematic facility at 
     the University of Alabama in Tuscaloosa, Alabama;
       --$500,000 for Calhoun County Community College Advance 
     Manufacturing Center in Decatur, Alabama;
       --$1,000,000 for the City of Huntsville for the development 
     of the Center for Early Southern Life at Alabama Constitution 
     Village;
       --$2,000,000 for Pittsburgh, Pennsylvania to redevelopment 
     the Sun Company/LTV Steel site in Hazelwood, PA;
       --$250,000 for the development of a business development 
     center and a job training center in the underserved 
     communities of Central and South Philadelphia;
       --$1,000,000 for Wilkes-Barre, PA for a downtown 
     revitalization project;
       --$1,200,000 for the development of the Riverbend Research 
     and Training Park in Post Falls, Idaho;
       --$600,000 for Marguerite's Place, a shelter for battered 
     women, in Nashua, N.H.;
       --$300,000 for Keystone Hall, a drug and rehabilitation 
     Center in Nashua, N.H.;
       --$100,000 for Southern New Hampshire Services for homeless 
     outreach in Nashua, N.H.;
       --$450,000 to the Great Lakes Science Center, in Cleveland, 
     Ohio to further the creation, renovation and upgrade of the 
     Great Ideas Community and Great Lakes Environment Exhibits;
       --$500,000 to John Carroll University in Cleveland, Ohio 
     for the Bohannon Science Center's advancement of the Center 
     for Science Education, Teaching and Technology;
       --$500,000 to the Cleveland Public Library in Cleveland, 
     Ohio for the academic enrichment and workforce development 
     project;
       --$500,000 to the Amistad Development Corporation in 
     Cleveland, Ohio for the Lee Harvard Shopping Center and 
     District infrastructure enhancement and redevelopment 
     investment initiative;
       --$500,000 to the Jewish Community Center of Cleveland, 
     Ohio for the restoration and upgrade of daycare facilities 
     and enhancement of services and programs for children and 
     seniors;
       --$500,000 to the Murtis H. Taylor Multi-Service Center in 
     Cleveland, Ohio for furthering a full range of community 
     outreach and social services delivery and enhancement;
       --$350,000 to the Cleveland Boys and Girls Club in 
     Cleveland, Ohio for the enhancement of youth and community 
     outreach, and human and economic capital development and 
     investment;
       --$800,000 to Cleveland Housing Network, Inc. in Cleveland, 
     Ohio for furthering the lease purchase housing initiative on 
     the east side of Cleveland;
       --$1,000,000 to the Playhouse Square Foundation in 
     Cleveland, Ohio for the four-theater complex Allen Theatre 
     restoration project;
       --$1,000,000 to the City of Parkersburg, West Virginia for 
     economic development and downtown revitalization efforts;
       --$250,000 to the Vandalia Heritage Foundation, a 501(c)(3) 
     organization which promotes community and economic 
     development in northern West Virginia;
       --$200,000 to the Institute for Software Research in 
     Fairmont, West Virginia to be used for capital equipment, 
     operational expenses, and program development;
       --$350,000 to the City of Fairmont, West Virginia to be 
     distributed as follows: $250,000 for the Fairmont Community 
     Development Partnership and $100,000 for the Friends of 
     Highgate;
       --$400,000 to the town of Thomas, West Virginia for 
     downtown revitalization and historic preservation;
       --$2,200,000 to the City of Toledo, Ohio to address 
     improvements to central city neighborhoods, the historic main 
     public library, and downtown area projects, and to leverage 
     the potential of Toledo's not-for-profit community 
     development corporations;
       --$2,200,000 to the Alternatives Program of Dade County, 
     Inc. for rehabilitation of distressed buildings in the 
     Edison-Little River neighborhood in Miami, Florida;
       --$650,000, to the City of Durham, North Carolina for 
     economic and neighborhood revitalization efforts;
       --$700,000 to the City of Mackinac Island, Michigan for 
     renovation of the historic Mackinac County courthouse;
       --$950,000, to the North West Concentrated Employment 
     Program in Ashland, Wisconsin for education, training, 
     counseling, emergency assistance, and related services for 
     displaced workers and their families;
       --$150,000 to the Saint Vincent Archabbey in Latrobe, 
     Pennsylvania for restoration of the historic Saint Vincent 
     Abbey grist mill;

[[Page H9424]]

       --$240,000 to the Fort Ligonier Association for restoration 
     of buildings at Fort Ligonier, Pennsylvania;
       --$185,000 to the Salisbury-Elk Lick School District in 
     Somerset County, Pennsylvania to construct a community center 
     to house intergenerational technology and early childhood 
     programs as well as a library;
       --$150,000 to the Redevelopment Authority of Cambria 
     County, Pennsylvania for a waterline extension;
       --$75,000 to the City of Latrobe, Pennsylvania for 
     demolition of buildings to open lots for new development;
       --$200,000 to Fallingwater in Mill Run Pennsylvania, to 
     construct a water treatment facility;
       --$400,000 to the City of Tacoma, Washington to implement 
     its downtown redevelopment plan;
       --$300,000 to the City of Minneapolis, Minnesota for the 
     restoration of Dania Hall;
       --$300,000 to the City of Minneapolis, Minnesota for the 
     Portland Place housing development initiative;
       --$500,000 to the Los Angeles Brotherhood Crusade for the 
     Brotherhood Business Development and Capital Fund;
       --$700,000 to the City and County of San Francisco, 
     California for community revitalization efforts in the 
     Visitacion Valley neighborhood;
       --$450,000 to the City of Lake Station, Indiana for 
     rehabilitation of sewer lines;
       --$400,000 to ADVANCE, of Whittier, California for 
     community economic development activities, including 
     technical assistance and outreach to small businesses in the 
     Los Angeles County region;
       --$450,000 to the Village of Port Chester, New York for 
     downtown revitalization;
       --$50,000 to the Mount Hope Housing Company of New York 
     City for the renovation of various aspects of a multi-use 
     community center;
       --$300,000 to the New York City Department of Parks and 
     Recreation for the rebuilding and restoration of Joyce Kilmer 
     Park in the South Bronx;
       --$400,000 to Arlington County, Virginia to assist the 
     county in developing an innovative low income housing program 
     to facilitate home ownership for families displaced through 
     the redevelopment of the Arna Valley apartments;
       --$50,000 to the McLean Revitalization Corporation in 
     McLean, Virginia to implement the McLean revitalization plan 
     developed by Fairfax County for the aging McLean business 
     district;
       --$400,000 for the North County Community Development 
     Corporation in North Adams, Massachusetts for the 
     construction of a small business incubator;
       --$350,000 to the Arizona Science Center to provide science 
     and technology education and training opportunities to low-
     income and minority students in downtown Phoenix;
       --$250,000 to the National Children's Advocacy Center in 
     Huntsville, Alabama for construction of a new facility;
       --$100,000 to Alabama A&M University in Normal, Alabama for 
     renovation of historic buildings on the university's campus;
       --$50,000 to Princess Theater in Decatur, Alabama for 
     renovation and operation of the current facility;
       --$750,000 to the Oregon Garden Project to construct a 
     wastewater treatment, education and training facility in 
     Silverton, Oregon;
       --$500,000 to the City of Buffalo, New York for 
     improvements to LaSalle Park;
       --$250,000 to the Town of Tonawanda, New York for 
     demolition of abandoned grain elevators;
       --$500,000 to Great Brook Valley Health Center, Inc. in 
     Worcester, Massachusetts to support a capital expansion 
     project to increase health services to the poor and indigent;
       --$200,000 to Assumption College in Worcester, 
     Massachusetts for construction of the Joseph P. Kennedy, Jr. 
     Science and Technology Center;
       --$100,000 to the Appalachian Health Services Cooperative 
     in Hillsboro, Ohio for a rural Medicaid health cooperative 
     among Highland District Hospital, Brown County General 
     Hospital and Adams County Hospital;
       --$400,000 to the Portsmouth Metropolitan Housing Authority 
     in Portsmouth, Ohio for air conditioning of housing units;
       --$400,000 to the Far From Home Foundation in Indianapolis, 
     Indiana to provide substance abuse treatment and transitional 
     housing for homeless veterans;
       --$400,000 to the City of San Diego Redevelopment Agency 
     for development of the retail portion of City Heights Urban 
     Village in San Diego, California;
       --$300,000 to the City of Bad Axe, Michigan for a water and 
     sewer project;
       --$100,000 to Harambee Institute in St. Louis, Missouri to 
     continue expansion of facilities providing educational 
     guidance and encouragement to children and adults interested 
     in pursuing a career in the arts;
       --$100,000 to the St. Louis Black Repertory Company, to 
     further the expansion and renovation of a facility to provide 
     cultural arts activities for the St. Louis metropolitan area;
       --$150,000 to Better Family Life, Inc. in St. Louis, 
     Missouri to assist with the construction of new facilities 
     offering school-based programs and cultural programs;
       --$100,000 to The Black World History Wax Museum in St. 
     Louis, Missouri for structural renovation and improvements in 
     the building's accessibility and safety;
       --$50,000 to Grace Hill Neighborhood Services in St. Louis, 
     Missouri to improve community services at a facility 
     dedicated to strengthening low-income neighborhoods in North 
     St. Louis;
       --$300,000 to Williamsburg County, South Carolina for the 
     Williamsburg County Industrial Park;
       --$50,000 to the Westside Association for Community Action 
     in Chicago, Illinois for its community development, job 
     training, drug prevention and juvenile delinquency prevention 
     programs;
       --$50,000 to the Coalition for United Community Action in 
     Chicago, Illinois for job training and development programs;
       --$50,000 to the Chinese American Service League in 
     Chicago, Illinois for community development, and social 
     services programs;
       --$50,000 for SANKOFA of Chicago, Illinois for housing 
     counseling, rehabilitation, and tenant education programs;
       --$350,000 to the City of Salinas, California for 
     development of housing and daycare facilities for farmworker 
     families;
       --$400,000 to Memphis Incubator System, Inc. to establish a 
     business incubator in Memphis, Tennessee;
       --$500,000 to the Rural Development and Finance Corporation 
     to seed a special opportunities fund, underwrite project 
     technical assistance, and make capacity-building grants to 
     rural community development corporations along the Texas/
     Mexico border;
       --$200,000 to the Village of Dixmoor, Illinois for the 
     purchase and renovation of a building for a community and 
     senior center and for the acquisition of adjacent land for 
     recreation park development and open space preservation;
       --$200,000 to Metropolitan Family Services in Chicago, 
     Illinois for the purpose of renovating and expanding the 
     Calumet Center;
       --$300,000 to Covenant House/Texas for their transitional 
     housing program for runaway and homeless youth;
       --$350,000 to the City of Dallas, Texas for redevelopment 
     initiatives in the southern areas of the city;
       --$400,000 to the Commonwealth of Massachusetts, of which 
     $250,000 is for the Arlington-Boston Bike Path and $150,000 
     is for the Minuteman Commuter Bikeway;
       --$400,000 to the Southside Institutions Neighborhood 
     Alliance of Hartford, Connecticut for neighborhood 
     revitalization efforts;
       --$300,000 to the Cleveland Botanical Garden of Cleveland, 
     Ohio for development of an environmental educational 
     facility;
       --$1,600,000 to Spelman College in Atlanta, Georgia for 
     development of a science center;
       --$300,000 to Schenectady Family Health Services in 
     Schenectady, New York, for facilities expansion;
       --$300,000 to the Rockaway Development and Revitalization 
     Corporation in New York City, for rehabilitation of a 
     building for use as a commercial incubator facility;
       --$300,000 to the Northeast Ventures Corporation in Duluth, 
     Minnesota for economic development projects in northeastern 
     Minnesota;
       --$400,000 to the Southern West Virginia Community and 
     Technical College in Williamson, West Virginia for 
     construction and furnishing of a library;
       --$400,000 to the Apollo Theatre Foundation in New York 
     City, for renovation and upgrades to the theatre;
       --$200,000 to Project Restore of Los Angeles, California 
     for the Los Angeles City Civic Center Trust, to revitalize 
     and redevelop the Civic Center neighborhood;
       --$150,000 to the Southeast Rio Vista Family YMCA, for 
     development of a child care center in the City of Huntington 
     Park, California;
       --$50,000 to the City of Los Angeles for redevelopment of a 
     former prison site;
       --$100,000 to the City of Richmond, Virginia for an 
     alternative school program in the East End community of 
     Richmond;
       --$50,000 to Best Friends, Inc. in Newport News, Virginia 
     for its work with at-risk and economically disadvantaged 
     adolescent girls;
       --$100,000 to Hampton University in Virginia for a high-
     speed technology information network;
       --$350,000 to the City of Petersburg, Virginia for the 
     creation of the Appomattox Regional Governor's School for 
     Technology and the Arts in Petersburg;
       --$300,000 to the University of Rochester Medical Center in 
     Rochester, New York for its Institute of Biomedical Sciences;
       --$350,000 to the Delta Foundation in Greenville, 
     Mississippi for its Urban Revolving Business Fund;
       --$300,000 to the Brooklyn (New York) campus of Long Island 
     University, to support the renovation of a community-based 
     performing arts facility;
       --$500,000 to the Black Women's Forum in Los Angeles, 
     California for site acquisition and construction of a multi-
     purpose center;
       --$350,000 to Marin County, California for development of a 
     cultural and community center in the Marin City region of the 
     county;
       --$50,000 to the City of Rialto, CA for construction at the 
     city's Teen Center.
       --$42,500,000 for Youthbuild, instead of $35,000,000 as 
     proposed by the House and $40,000,000 as proposed by the 
     Senate. The conferees agree that not more than $2,500,000 of 
     the funds shall be used for capacity building activities; and
       --$25,000,000 for the Neighborhood Initiatives program, as 
     proposed by the House.

[[Page H9425]]

       Deletes a provision earmarking $20,000,000 for Brownfields, 
     as proposed by the House. The conferees agree to provide 
     $25,000,000 for Brownfields in a separate account as proposed 
     by the Senate.
       Deletes a provision providing $70,000,000 for lead-based 
     paint hazard reduction program and prohibiting funds for the 
     healthy homes initiative, as proposed by the Senate. The 
     conferees agree to provide $80,000,000 for the lead-based 
     paint hazard reduction program and the healthy homes 
     initiative in a separate account, as proposed by the House.
       Inserts language proposed by the Senate that no more than 
     $250,000 of the funds made available for emergencies may be 
     used for a non-federal cost-share of a project funded by the 
     Corps of Engineers.
       The conferees agree that HUD shall not require additional 
     states to implement the Integrated Disbursement and 
     Information System (IDIS) until problems associated with it 
     are corrected. The problems include, but are not limited to, 
     the lack of a fully functioning Electronic Data Interchange, 
     full internet capacity, and complete reporting abilities. HUD 
     shall report to Congress, no later than January 1, 1999, as 
     to the specific corrective actions being taken to resolve 
     existing system problems for current state users.


                       Brownfields Redevelopment

       Appropriates $25,000,000 for brownfields redevelopment, as 
     proposed by the Senate.


                  Home Investment Partnerships Program

       Appropriates $1,600,000,000 for the HOME program, as 
     proposed by the House instead of $1,550,000,000 as proposed 
     by the Senate. An earmark of $17,500,000 is provided for 
     housing counseling, instead of $10,000,000 as proposed by the 
     House and $25,000,000 as proposed by the Senate.
       The conference agreement directs rather than recommends 
     that HUD develop a process for measuring the performance of 
     housing counseling agencies as proposed by the House.
       The conferees are aware that the McGuire House, an 
     unoccupied low-income housing project in Prince George's 
     County, Maryland, has been vacant for quite some time. The 
     conferees, therefore, encourage HUD to work with the County 
     to redevelop this property, thereby assisting in the economic 
     development of the area.


                       Homeless Assistance Grants

       Appropriates $975,000,000 for homeless assistance grants, 
     as proposed by the House instead of $1,000,000,000 as 
     proposed by the Senate.
       Inserts language proposed by the House authorizing HUD to 
     review obligated amounts, and to deobligate those funds if 
     appropriate, particularly if it seems likely a contract is 
     unlikely to be performed. The conferees note that 
     deobligating these funds should result in a funding level 
     significantly above $1,000,000,000.
       Inserts language requiring at least 30% of the 
     appropriation be directed to permanent housing, as proposed 
     by the Senate.
       Inserts language requiring a 25% match by grantees for 
     services, as proposed by the Senate.
       Inserts language proposed by the House authorizing HUD to 
     use 1% of funds appropriated for technical assistance and for 
     tracking systems needed to collect information on the 
     unduplicated number of clients serviced and the disposition 
     of the client exiting homeless programs.

                            Housing Programs


                    Housing for Special Populations

       Appropriates $854,000,000 for housing for special 
     populations, instead of $839,000,000 as proposed by the House 
     and $870,000,000 as proposed by the Senate. For section 202 
     housing for the elderly, $660,000,000 is appropriated instead 
     of $645,000,000 as proposed by the House and $676,000,000 as 
     proposed by the Senate. The conferees reiterate Senate report 
     language directing $1,000,000 of the funds to the Maryland 
     Department of Housing and Community Development to build 
     Caritas House and for expanding the St. Ann Adult Medical Day 
     Care facility.

                     Federal Housing Administration


             FHA--MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

                     (Including Transfers of Funds)

       Limits obligations for direct loans to no more than 
     $100,000,000 as proposed by the Senate instead of $50,000,000 
     as proposed by the House.
       Deletes language proposed by the Senate providing 
     $25,000,000 for enforcement of standards on FHA insured 
     multifamily projects.


             FHA--GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

                     (Including Transfer of Funds)

       Limits obligations for the principal amount of direct loans 
     to no more than $50,000,000, of which no more than 
     $30,000,000 is for bridge financing, as proposed by the 
     House, instead of limiting obligations for direct loans to no 
     more than $120,000,000, of which no more than $100,000,000 
     was for bridge financing as proposed by the Senate.
       Deletes report language proposed by the Senate directing 
     HUD to refrain from conducting bulk mortgage sales of FHA-
     insured single family mortgages.
       The conferees are concerned that HUD has invested 
     considerable time and resources in developing a policy 
     statement that clarifies its position on lender-paid mortgage 
     broker fees and their legality under the Real Estate 
     Settlement Procedures Act. Congress never intended payments 
     by lenders to mortgage brokers for goods or facilities 
     actually furnished or for services actually performed to be 
     violations of subsections (a) or (b) (12 U.S.C. Sec. 2607) in 
     its enactment of RESPA. Publishing a policy statement could 
     provide invaluable guidance to consumers, brokers, and the 
     courts. The conferees are concerned about the legal 
     uncertainty that continues absent such a policy statement. 
     The conferees direct HUD to clarify its position on lender 
     payments to mortgage brokers within 90 days after the 
     enactment of this appropriation Act. The conferees expect HUD 
     to work with representatives of industry, Federal agencies, 
     consumer groups, and other interested parties on this policy 
     statement.
       HUD is instituting a new, computerized, uniform physical 
     inspection requirement for its FHA-insured and its subsidized 
     multifamily housing. This new requirement is part of the 
     Department's efforts to obtain an objective, comprehensive 
     assessment of the condition of the overall HUD multifamily 
     portfolio. The conferees understand that the housing industry 
     generally supports these efforts, but the initial 
     implementation of this new procedure will impose cost burdens 
     on private companies with existing contracts with mortgage 
     investors. For purposes of prudent and equitable 
     implementation of the new system, the conferees believe HUD 
     should contract for a portfolio-wide baseline review of its 
     multifamily housing stock. The conferees expect HUD to use 
     money in the General Insurance and Special Risk Fund or 
     section 8 amounts or other funding, as appropriate and 
     proportional, for the purpose of paying for all or part of 
     the cost of implementing the new physical inspection 
     standards.

                    Policy Development and Research


                        Research and Technology

       Appropriates $47,500,000 for research and technology, 
     including $10,000,000 for PATH, as proposed by the House 
     instead of $36,500,000 as proposed by the Senate.
       Deletes language prohibiting funds from being used for 
     demonstration programs unless they already exist or are 
     authorized in this legislation, as proposed by the Senate. 
     The conferees agree, however, that new demonstration programs 
     not specifically authorized shall not receive funds from this 
     account unless approved in the HUD Operating Plan or in a 
     reprogramming request.
       Inserts a modification directing, rather than urging, HUD 
     to collaborate with the Swope Parkway Health Center in Kansas 
     City, as proposed by the Senate.
       Inserts direction to HUD requiring it to cooperate with 
     other federal agencies and the housing industry, and to 
     engage in PATH activities that will provide research, 
     development, testing, and engineering protocols for building 
     materials and methods, as described in the Industry 
     Implementation Plan of the Residential National Construction 
     Goals. The conferees direct HUD to furnish the VA, HUD and 
     Independent Agencies subcommittees with an operating plan for 
     PATH, including specific and measurable goals, no later than 
     December 31, 1998, and a draft evaluation report describing 
     progress made toward meeting those goals no later than April 
     30, 1999.
       Inserts direction requesting from HUD a report due by June 
     30, 1999, on the impact on the welfare population residing in 
     federally subsidized public housing located in those states 
     that have declined federal Welfare-to-Work funds to determine 
     if any positive or negative impact has occurred because of 
     the state's decision to decline these federal funds.

                   FAIR HOUSING AND EQUAL OPPORTUNITY


                        Fair Housing Activities

       Appropriates $40,000,000 for fair housing activities, as 
     proposed by the House instead of $35,000,000 as proposed by 
     the Senate. The conferees agree to the distribution of funds 
     in the House report.
       Deletes language proposed by the Senate directing HUD to 
     develop policy guidelines on aspects of Fair Housing by 
     August 1, 1999.

                     OFFICE OF LEAD HAZARD CONTROL


                         Lead Hazard Reduction

       Appropriates $80,000,000 for lead hazard reduction, as 
     proposed by the House instead of $70,000,000 as proposed by 
     the Senate.
       Provides that $70,000,000 of the total appropriation shall 
     be for lead hazard reduction, including $2,500,000 for 
     CLEARCorps, as proposed by the House, and $10,000,000 shall 
     be for the Healthy Homes Initiative, instead of $20,000,000 
     as proposed by the House. The conferees agree to the set-
     asides and directives contained in the House report.

                     Management and Administration


                         SALARIES AND EXPENSES

                     (Including Transfer of Funds)

       Appropriates $985,826,000 for salaries and expenses as 
     proposed by the House instead of $992,826,000 as proposed by 
     the Senate.
       Inserts language proposed by the Senate prohibiting HUD 
     from employing more than 77 schedule C and 20 non-career SES 
     employees.
       The House report requested a report from HUD regarding its 
     procedures for determining whether various functions should 
     be contracted out or performed in-house. The conferees are 
     appreciative of HUD's timely response to this request, but 
     are somewhat alarmed by the content of that response.

[[Page H9426]]

       HUD's response seems to be saying that its only real 
     procedures for determining whether a function should be 
     contracted out are those procedures required under OMB 
     Circular A-76, but that the Department has not actually 
     conducted an A-76 review in a number of years. The response 
     explains why, in HUD's view, this lack of reviews does not 
     violate Circular A-76. However, the Committee's concern was 
     not so much whether HUD contracting out decisions violate the 
     law, but rather whether these decisions make sense. In 
     particular, the Committee was concerned that HUD's desire to 
     meet stringent personnel reduction goals has led to 
     contracting out of functions that could be performed more 
     efficiently or less expensively in-house. The conferees 
     reiterate these concerns, and urge the Department to 
     reconsider whether it needs further controls and analytical 
     procedures to make sure that contracting out is done only 
     when it is cost effective to do so.


                      Office of Inspector General

                     (Including Transfers of Funds)

       Appropriates $81,910,000 for the Office of Inspector 
     General, as proposed by the House instead of $66,850,000 as 
     proposed by the Senate.
       Inserts language clarifying the Inspector General's 
     authority over personnel matters within the Office of 
     Inspector General.


             Office of Federal Housing Enterprise Oversight

                         Salaries and Expenses

                     (Including Transfer of Funds)

       Appropriates $16,000,000 for the Office of Federal Housing 
     Enterprise Oversight (OFHEO) as proposed by the Senate, 
     instead of $16,551,000 as proposed by the House.


                       ADMINISTRATIVE PROVISIONS

       Inserts modification to language proposed by the Senate by 
     eliminating additional public and assisted housing reform 
     extenders.
       Inserts language agreed to by the conferees clarifying 
     Freddie Mac's ability to lower the costs of providing low 
     downpayment loans by using lower cost methods of protecting 
     against the risk of default with the approval of their safety 
     and soundness regulator.
       Deletes language proposed by the House providing for a 
     lower rent subsidy based on the cost of an efficiency 
     apartment instead of a one-bedroom. Inserts language proposed 
     by the Senate to provide incentives for refinancing 
     multifamily projects originally financed with FAF bonds.
       Inserts language proposed by the Senate prohibiting 
     prosecution of persons under the Fair Housing Act.
       Deletes language proposed by the Senate requiring public 
     notice and comment in rulemaking procedures.
       Inserts modification to language proposed by the Senate to 
     permanently make Brownfields an eligible activity under the 
     CDBG program as proposed by the Senate.
       Inserts language proposed by the Senate providing HUD with 
     flexibility to make rehabilitation grants and loans in 
     disposing of HUD-owned and HUD-held properties.
       Deletes language proposed by the Senate making technical 
     corrections to the Housing For Persons With AIDS (HOPWA) 
     program.
       Deletes language proposed by the House to extend public 
     housing reforms.
       Deletes language proposed by the House to delay for three 
     months the reissuance of section 8 vouchers and certificates.
       Inserts language proposed by the House making changes to 
     the HOPWA formula to correct anomalies that result in the 
     loss of funds for a state when the incidence of AIDS in a 
     large city within the state increases.
       Inserts language proposed by the House allowing PHAs to 
     draw down capital grants funds on construction-related 
     schedules and deposit the funds in an escrow account to 
     collateralize bonds for construction and rehabilitation.
       Inserts language proposed by the House eliminating the 
     shopping incentive in the section 8 program.
       Inserts language proposed by the House allowing HUD, 
     through negotiated rulemaking, to review the current 
     performance funding system (PFS).
       Inserts language proposed by the Senate extending HUD's 
     multifamily mortgage insurance risk-sharing programs through 
     fiscal year 1999.
       Inserts modification to language proposed by the Senate 
     extending the FHA single-family streamlined downpayment 
     demonstration program to every state.
       Inserts language proposed by the Senate providing funding 
     for implementing IDIS.
       Inserts language proposed by the Senate making technical 
     corrections to nursing home lease terms.
       Deletes language proposed by the Senate prohibiting the use 
     of enterprise zones and empowerment communities as criteria 
     in awarding program grants. The conferees have dropped the 
     prohibition against HUD awarding additional grant points 
     because a jurisdiction has been designated as an empowerment 
     zone or enterprise community. Instead, HUD is directed to 
     establish criteria for identifying high-performing 
     empowerment zones and enterprise communities and to provide 
     the committees with the criteria and a list of all high-
     performing empowerment zones and enterprise communities. HUD 
     further is directed to provide bonus points, where 
     appropriate, only to such high-performing areas for purposes 
     of awarding grants.
       Deletes language proposed by the Senate requiring HUD to 
     notify the Committees on Appropriations of all grant awards 
     at least 24 hours before public or private announcements. The 
     conferees are concerned that HUD has not provided adequate 
     notice of awards on a timely basis and expect HUD to make 
     timely notice of awards to all members, regardless of 
     party affiliation.
       Inserts language proposed by the Senate enabling Native 
     Americans to have access to the use of emergency CDBG funds.
       Deletes language proposed by the Senate requiring HUD to 
     make all recaptured funds subject to a reprogramming request.
       Deletes language proposed by the Senate prohibiting HUD 
     from providing tuition payments under the community builders 
     program. The conferees believe that education and educational 
     opportunities are an important component of federal 
     employment, but remain concerned over some costs that may be 
     considered excessive. The conferees direct HUD, as part of 
     its operating plan, to provide a review of all education 
     programs and activities (including the Community Builders 
     program) available to HUD employees, as well as a breakdown 
     of all costs associated with these programs and activities. 
     All proposed programs and activities shall be subject to 
     approval as part of the operating plan approval process.
       Inserts language proposed by the Senate to provide funding 
     flexibility to a project in Bismarck, North Dakota.
       Inserts language proposed by the House extending for one 
     year a provision that waives the 15% public service cap for 
     the City and County of Los Angeles. The conferees note their 
     concern, however, about continuing this extension beyond this 
     fiscal year. Therefore, HUD is directed to provide a report 
     to the Subcommittees on VA, HUD and Independent Agencies on 
     what the City and County do with these additional funds. In 
     the report, the City and County should explain the nexus 
     between the public services cap and the riots for which the 
     cap was waived.
       Deletes language proposed by the Senate making technical 
     changes to portfolio reengineering legislation.
       Inserts a modification to language proposed by the Senate 
     requiring five months notice to residents and local 
     governments of an owner's intent to prepay the mortgage note 
     in preservation-eligible projects. The conferees direct HUD 
     to provide guidance regarding the notice requirement so that 
     it includes an explanation of alternative housing assistance, 
     such as enhanced housing vouchers, that will be made 
     available to residents in buildings where affordability 
     restrictions are removed.
       Inserts language proposed by the Senate clarifying that 
     Indian Housing Authorities or tribally designated housing 
     entities are eligible to receive Drug Elimination Grants.
       Inserts language proposed by the Senate authorizing HUD to 
     provide information and to buy information on the multifamily 
     FHA-insured program.
       Inserts language proposed by the Senate allowing HUD to 
     auction HUD-held and HUD-owned multifamily mortgages until 
     December 31, 2002.
       Inserts language proposed by the Senate redirecting 
     $250,000 to the Central Vermont Revolving Loan Fund.
       Inserts modification to language proposed by the Senate 
     requiring HUD to provide an annual report to Congress on 
     management deficiencies found in the FHA audited financial 
     statement by eliminating language that conditions 
     implementation of the FHA loan limits on receipt of this 
     report.
       Deletes language proposed by the Senate requiring owners of 
     preservation-eligible properties to file a one-year notice of 
     prepayment.
       Inserts modification to language proposed by the Senate 
     requiring disclosure to consumers about the costs of FHA-
     insured mortgages as compared to conventionally insured 
     mortgages and by changing the effective date of the 
     disclosure.
       Inserts modification to language proposed by the Senate by 
     making excess rent rules applicable to certain section 236 
     projects.
       Inserts modification to language increasing the FHA single 
     family loan limits, as proposed by the Senate, allowing 
     uniformity within metropolitan statistical areas.
       Inserts language which would recapture 1996 HOPE VI grant 
     funds awarded to the Housing Authority of Baltimore City 
     (HABC) for development efforts at the Hollander Ridge housing 
     development. The funds are to be recaptured if HUD decides to 
     rescind the grant award. The bill also includes language 
     which directs HUD to award the recaptured funds to HABC if 
     HABC applies for a future HOPE VI grant for Hollander Ridge 
     and the application meets the criteria of the applicable 
     NOFA.
       Inserts language agreed to by the conferees canceling any 
     liability to the Federal Government for outstanding principal 
     balance of the public facilities loan for the Town of Hobson 
     City, Alabama.
       Inserts language agreed to by the conferees providing a one 
     day grace period for the City of Wichita and Sedgwick County, 
     Kansas, for submission of Continuum of Care Homeless 
     Assistance program.
       Inserts new language increasing the community development 
     block grants public service cap for the City of Miami. The 
     City of Miami shall provide an annual report to HUD and the 
     Committees on Appropriations on the use of these public 
     service funds. The Department shall provide the Committees on 
     Appropriations with a report on the lessons learned by the 
     City's use of these funds.

[[Page H9427]]

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                         SALARIES AND EXPENSES

       Appropriates $26,431,000 for salaries and expenses as 
     proposed by the House instead of $26,931,000 as proposed by 
     the Senate. The amount provided represents an increase of 
     $2,500,000 above the budget request, which the conferees 
     expect will be used by the Commission to continue reducing 
     the backlog of maintenance requirements.
       Language proposed by the Senate with respect to the Liberty 
     Memorial Monument has not been retained.

             Chemical Safety and Hazard Investigation Board


                         SALARIES AND EXPENSES

       Appropriates $6,500,000 for salaries and expenses as 
     proposed by the House and the Senate. Language contained in 
     both the House and Senate bills which would limit the Board 
     to three career Senior Executive Service positions has been 
     retained.

                       Department of the Treasury


              COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

       Appropriates $80,000,000 for the Community Development 
     Financial Institutions Fund, as proposed by the House, 
     instead of $55,000,000 as proposed by the Senate. The 
     conferees encourage the CDFI to give full and equal 
     consideration to credit unions and specialized community 
     development credit unions as eligible entities for grants, 
     loans, and technical assistance. By their very existence, 
     credit unions are grassroots community development 
     institutions, and the CDFI should encourage and assist credit 
     unions in taking a lead in their communities.

                   Consumer Product Safety Commission


                         Salaries and Expenses

       Appropriates $47,000,000 for the Consumer Product Safety 
     Commission, salaries and expenses, instead of $46,000,000 as 
     proposed by the House and $46,500,000 as proposed by the 
     Senate. The conferees agree to delete a general provision 
     which was included in the House bill which appropriated an 
     additional $5,000,000 for this account.
       The conferees have included language in the bill which 
     requires the Commission to contract with the National Academy 
     of Sciences' Committee on Toxicology to study the potential 
     toxicologic risks of all flame-retardant chemicals identified 
     by the Commission as likely candidates for use in residential 
     upholstered furniture for the purpose of meeting regulations 
     proposed by the Commission for flame resistance of 
     residential upholstered furniture. The NAS study shall assess 
     toxicologic hazards to human health, including 
     carcinogenicity, mutangenicity, neurotoxicity, and other 
     chronic and acute effects to consumers exposed to fabrics 
     intended to be used in residential upholstered furniture 
     which would be chemically treated to meet the Commission's 
     proposed flame resistance standards. The study shall also 
     assess potential human exposures to such flame-retardant 
     chemicals in residential upholstered furniture, and research 
     needed to fill important data gaps related to toxicologic 
     risks of flame-retardant chemicals. The NAS shall complete 
     the report within 12 months of finalizing arrangements with 
     the Commission, and shall submit the final report to the 
     Congress. The Commission, before promulgating any notice of 
     proposed rulemaking or final rule setting flammability 
     standards for residential upholstered furniture, shall 
     consider fully the findings of the NAS. The conferees have 
     provided $500,000 for the NAS study.
       In addition, the conferees direct that the General 
     Accounting Office conduct a review of the process the 
     Commission has conducted regarding a possible rulemaking 
     establishing a standard for upholstered furniture 
     flammability, including consideration of the potential 
     toxicity of the chemicals which would be used as flame 
     retardants, cost-benefit analysis, and consideration of the 
     percentage of residential fire deaths stemming from small 
     open flames relative to other sources. As part of this study, 
     the conferees request the GAO to review the major causes of 
     household fires, including fires caused by cigarette smoking 
     and small open flames. The Commission is to consider the GAO 
     findings and recommendations prior to promulgating a final 
     rule on upholstered furniture flammability. This issue is 
     addressed in Section 423.
       The conferees direct the General Accounting Office to study 
     and report on the effect of the child sleepwear standard 
     currently in effect as a result of changes adopted by the 
     Consumer Product Safety Commission in January, 1997. The GAO 
     is to review children's burn incident data for the 18-month 
     period of July 1997 through January 1999 and compare this 
     data to child burn incident data from the prior four years. 
     GAO shall also assess the information and education campaign 
     which has been undertaken by the Commission and the apparel 
     and retail industry since the new standards took effect in 
     January 1997, to determine whether it effectively maximized 
     children's safety. The Commission shall consider and 
     substantively address the findings of the GAO and additional 
     information collected through the National Electronic 
     Information Surveillance System on burn data as it considers 
     revisions to the children's sleepwear standards. This issue 
     is addressed in section 429.

             Corporation for National and Community Service


       NATIONAL AND COMMUNITY SERVICE PROGRAMS OPERATING EXPENSES

       Appropriates $425,500,000 for national and community 
     service programs operating expenses as proposed by the 
     Senate. The House proposed termination of the Corporation for 
     National and Community Service from funds appropriated in 
     fiscal year 1998.
       Limits funds for administrative expenses to not more than 
     $28,500,000, instead of $27,000,000 as proposed by the 
     Senate. The conferees agree that additional funds are needed 
     to achieve better financial management, and have provided 
     $1,500,000 above the fiscal year 1998 level with the 
     expectation that the Corporation will find $1,500,000 from 
     existing lower priority administrative expenses activities 
     and redirect those funds to urgent program administration 
     needs such as financial management, data base and related 
     financial systems development, and Year 2000 computer 
     problems. The conferees note that approximately the same 
     level of funding is provided for administrative expenses of 
     the Corporation in the Labor-Health and Human Services-
     Education appropriations bill, making a total of 
     approximately $57,000,000 available for program 
     administration. To ensure the availability of additional 
     funds for these urgent program administration needs, the 
     conference agreement also includes bill language earmarking 
     not to exceed $3,000,000 of administrative expenses funding 
     for this purpose. In addition, the conferees understand that 
     the majority of the $3,000,000 appropriated in fiscal year 
     1996 for reforms of the financial management system will be 
     spent in fiscal years 1999 and 2000. The $3,000,000 
     appropriated in this bill, together with $3,000,000 
     appropriated in fiscal year 1996, will provide significant 
     funding to improve financial management and other urgent 
     program administration activities.
       The conferees intend that the Corporation will submit to 
     the House and Senate Committees on Appropriations within 60 
     days of the enactment of this Act a detailed plan for the 
     expenditure of the $3,000,000 in funds reserved to meet 
     urgent program administration needs. Further, the Corporation 
     will provide regular updates to the House and Senate 
     Committees on Appropriations every 60 days on the use of 
     these funds in accordance with that plan. The conferees also 
     intend that the Office of Inspector General will, within 30 
     calendar days after the submission of each such report, 
     including the plan for the expenditure of the $3,000,000 for 
     urgent needs, independently review and comment upon each 
     report submitted by the Corporation.
       Limits funds for quality and innovation activities to not 
     more than $28,500,000, instead of $30,000,000 as proposed by 
     the Senate.
       Limits funds as proposed by the Senate to not more than: 
     $2,500 for official reception and representation expenses; 
     $70,000,000 for education awards, of which not to exceed 
     $5,000,000 shall be available for national service 
     scholarships for high school students performing community 
     service; $227,000,000 for AmeriCorps grants, of which not to 
     exceed $40,000,000 may be for national direct programs; 
     $5,500,000 for the Points of Light Foundation; $18,000,000 
     for the civilian community corps; $43,000,000 for school-
     based and community-based service-learning programs; and 
     $5,000,000 for audits and other evaluations.
       Inserts language proposed by the Senate which prohibits 
     using any funds for national service programs run by Federal 
     agencies; provides that, to the maximum extent feasible, 
     funds for the AmeriCorps program will be provided 
     consistent with the recommendation of peer review panels; 
     and provides that, to the maximum extent practicable, the 
     level of matching funds shall be increased, education only 
     awards shall be expanded, and the cost per participant 
     shall be reduced.
       The House proposed that the Corporation be terminated and 
     did not include any of the foregoing limitations or 
     provisions proposed by the Senate.


                      OFFICE OF INSPECTOR GENERAL

       Appropriates $3,000,000 for the Office of Inspector General 
     as proposed by the Senate. The House proposed the orderly 
     termination of the Office of Inspector General from 
     previously appropriated funds.

                       Court of Veterans Appeals


                         SALARIES AND EXPENSES

       Appropriates $10,195,000 for salaries and expenses as 
     proposed by the House, instead of $10,000,000 as proposed by 
     the Senate.

                    Environmental Protection Agency


                         SCIENCE AND TECHNOLOGY

       Appropriates $650,000,000 for science and technology 
     instead of $656,505,000 as provided by the House and 
     $643,460,000 as provided by the Senate.
       The conferees have agreed to the following increases to the 
     budget request:
       1. $1,250,000 for continuation of the California Regional 
     PM 10 and 2.5 air quality study.
       2. $2,500,000 for EPSCoR.
       3. $400,000 for continuation of the study of livestock and 
     agricultural pollution abatement at Tarleton State 
     University.
       4. $3,000,000 for the Water Environment Research 
     Foundation.
       5. $2,700,000 for continued research on urban waste 
     management at the University of New Orleans.
       6. $800,000 to establish an environmental molecular 
     toxicology program at the University of Montana.
       7. $2,000,000 for the Mickey Leland National Urban Air 
     Toxics Research Center.

[[Page H9428]]

       8. $4,000,000 for the American Water Works Association 
     Research Foundation, including $1,000,000 for continued 
     research on arsenic.
       9. $2,000,000 for the National Decentralized Water Resource 
     Capacity Development Project, in coordination with EPA, for 
     continued training and research and development program.
       10. $1,500,000 for the Integrated Petroleum Environmental 
     Consortium project.
       11. $800,000 for the National Center for Atlantic and 
     Caribbean Reef Research at the Rosenstiel School of Marine 
     and Atmospheric Science.
       12. $1,900,000 for continued Salton Sea research, at the 
     University of Redlands.
       13. $1,800,000 for continued research on treatment 
     technologies relating to perchlorate managed by AWWARF on 
     behalf of the East Valley Water District, California.
       14. $2,000,000 for the Lovelace National Environmental 
     Respiratory Center.
       15. $4,000,000 to CE-CERT at the University of California/
     Riverside for the development of a next generation 
     environmental chamber to enable advanced research into 
     atmospheric processes under low NOx conditions 
     ($3,000,000) and for the development of test track research 
     facilities ($1,000,000).
       16. $800,000 to the University of New Hampshire to develop, 
     test, and evaluate innovative technologies for enhanced 
     bioremediation of organically contaminated bedrock aquifers.
       17. $2,500,000 for the Gulf Coast Hazardous Substance 
     Research Center.
       18. $1,000,000 for the development, design, and 
     implementation of a research effort on tributyltin based ship 
     bottom paints at Old Dominion University.
       19. $1,750,000 for the National Jewish Medical and Research 
     Center for research on the relationship between indoor and 
     outdoor pollution and the development of respiratory 
     diseases.
       20. $800,000 for the university portion of the Southern 
     Oxidants Study.
       21. $1,250,000 for the Center for Air Toxic Metals at the 
     Energy and Environmental Research Center.
       22. $1,000,000 for the Texas Regional Institute for 
     Environmental Studies to test new cost-effective 
     environmental restoration technologies.
       23. $1,000,000 for the Institute for Environmental and 
     Industrial Science at Southwest Texas State University.
       24. $6,000,000 for the Mine Waste Technology Program and 
     the Heavy Metal Water Program at the National Environmental 
     Waste Technology, Testing, and Evaluation Center.
       25. $1,000,000 for the Alabama Center for Estuarine 
     Studies.
       26. $2,000,000 for the Center for Environmental Research, 
     Education and Training at the University of Maryland-
     Baltimore County, for research on watershed science, 
     ecological and environmental impacts of urban and suburban 
     development, fate and transport of contaminants from urban 
     and rural land use, and analysis of large spatial data sets.
       27. $500,000 for the Brazos River Authority for poultry 
     pollution abatement research in the Brazos Navasota 
     watershed.
       The conferees have agreed to the following reductions from 
     the budget request:
       1. $19,955,000 from the climate change research program.
       2. $6,358,000 from the global change research program.
       3. $4,000,200 from the Advanced Measurement Initiative.
       4. $8,372,000 from the Project EMPACT.
       5. $11,654,800 as a general reduction.
       Within the funds provided for science and technology, the 
     conferees direct that $2,000,000 be used to continue the 
     initiative to transfer technology developed in Federal 
     laboratories to meet the environmental needs of small 
     companies in the Great Lakes region. This initiative should 
     be accomplished through a NASA sponsored Midwest regional 
     technology transfer center working in collaboration with an 
     HBCU from the region.
       For fiscal year 1999, the conferees have provided 
     $46,700,000 for continued research on particulate matter 
     (PM), an increase of $18,000,000 above the budget request. 
     The conferees note that the actual obligation of 1998 funds 
     has, for many reasons, not proceeded at the pace originally 
     expected. Nevertheless, the Agency has established July, 2002 
     as the date for completion of the next NAAQS review, and it 
     is thus imperative that research be well underway and where 
     possible, providing important data for the review and 
     decision-making process. The conferees strongly commend the 
     Agency for its fine efforts to date in working with the 
     National Academy of Sciences (NAS) and others on this 
     important research matter, and expect that the research funds 
     provided for fiscal year 1999 will be obligated as quickly as 
     possible. In this regard, the Agency is instructed not to 
     await approval of the annual operating plan prior to 
     obligation of these funds.
       As previously noted, the Agency has established July, 2002 
     as the date for completion of the next NAAQS review. Because 
     of the time necessary to conduct additional PM research, the 
     conferees are concerned that the schedule established by EPA 
     may not allow for adequate consideration of research that 
     will result from the enhanced fiscal years 1998 and 1999 
     appropriations. The conferees strongly urge EPA to amend its 
     PM NAAQS review schedule by reducing the Agency's drafting 
     time and internal review time to provide as much time as 
     possible for the consideration of new research.
       Finally, with respect to the speciation component of the 
     Agency's PM monitoring plan, the conferees request that the 
     NAS assist EPA's Clean Air Science Advisory Committee (CASAC) 
     by providing recommendations regarding the number and 
     location of monitors and specific objectives and operating 
     conditions for the various types of speciation monitors in 
     EPA's plan. Also, NAS should evaluate the adequacy of the 
     speciation component of the monitoring plan to characterize 
     those constituents of PM that are biologically active. The 
     NAS is expected to facilitate a thorough peer review of the 
     speciation component of EPA's monitoring plan by CASAC.
       EPA's recently published Contaminated Sediment Management 
     Strategy states that EPA will not proceed with clean-up of a 
     contaminated sediment site if the short-term and long-term 
     impacts of dredging are determined to cause more 
     environmental harm than leaving the contaminants in place. 
     The conferees believe, however, that EPA is proceeding with 
     some orders to dredge even though the evaluations called for 
     in EPA's own policies have not been undertaken. Further, a 
     National Academy of Sciences evaluation of dredging 
     technology required by the House Appropriations Committee in 
     fiscal year 1998, is not yet available. The conferees expect 
     EPA will implement its Contaminated Sediment Management 
     Strategy by evaluating the short-term and long-term impacts 
     of the proposed clean-up in relation to the reduction of 
     risks to human health and the environment and other benefits.
       It is vital that EPA and the Congress have the benefit of 
     the NAS study on remediation technologies for contaminated 
     sediments, including dredging, to assess the ability of 
     various methods to attain the environmental objectives of 
     the remediation, and the potential of these methods to 
     cause greater harm to the environment or other problems. 
     The conferees urge EPA to await the completion of the NAS 
     study before spending any Superfund money on dredging, 
     initiating any new dredging action, or issuing any more 
     dredging orders. Exceptions to this should be considered 
     where EPA has found on the record that the contaminated 
     sediment poses a significant threat to the public health 
     to which an urgent or time critical response is necessary, 
     remedial and/or removal alternatives to dredging have been 
     fully evaluated, an appropriate site for disposal of the 
     contaminated material has been selected, and the potential 
     impacts of dredging, associated disposal, and alternatives 
     have been explained to the affected community. The Agency 
     should take all reasonable steps to assure the expeditious 
     completion of the NAS study.
       The conferees understand that portions of EPA's 1994 draft 
     dioxin reassessment have been widely criticized within the 
     scientific community and by EPA's own Science Advisory Board 
     (SAB). The SAB's report, ``A Second Look at Dioxins'' 
     (November 1995) noted numerous weaknesses with the risk 
     characterization and dose-response chapters of the 
     reassessment. In particular, the SAB criticized EPA's 
     conclusion that dioxins have the potential to produce a broad 
     spectrum of effects in humans at or near current background 
     levels. The SAB directed EPA to ensure that its conclusions 
     were based on a more complete consideration of available 
     scientific studies.
       The conferees understand that EPA is preparing to release a 
     revised reassessment for public review, followed by a second 
     SAB review. The final dioxin reassessment, particularly the 
     risk characterization chapter, will provide the basis for 
     future federal policies and regulations relating to dioxin 
     and other chemicals. The conferees believe it is essential 
     that EPA fully address concerns raised by the SAB and 
     recommend that the Agency reconvene a SAB panel which would 
     include those members of the original Panel whose expertise 
     is germane to the redrafted portions of the reassessment.
       There are several aspects of tropospheric ozone formation 
     that would benefit from targeted research and investigation, 
     including NOx-limited conditions (as can be the case in rural 
     areas and urban areas with cleaner air), multi-day stagnation 
     events, and the changes in levels of ozone and particulate 
     matter caused by emissions of ozone precursors in ambient 
     air. Therefore, the conferees are providing $3,000,000 for 
     the development of an environmental chamber to enable 
     scientific research into the atmospheric processes involved 
     in the formation of ozone and particulate matter. More 
     precise tools are required to improve understanding and 
     modeling of the potential of volatile organic compounds 
     (VOCs) to affect ozone formation in the ambient air, 
     including the process that forms pollutants in rural and 
     cleaner urban environments, as recommended by the 1991 
     National Academy of Sciences/National Research Council's 
     ``Rethinking the Ozone Problem in Urban and Regional Air 
     Pollution.'' The new large chamber will provide information 
     that EPA and state regulators can use to develop more cost-
     effective strategies for controlling pollution. In 
     particular, this chamber will allow more accurate 
     measurements of positive and negative reactivity of VOC 
     emissions from architectural coatings.
       Not later than 45 days after the date of enactment of this 
     Act, the Administrator of the Environmental Protection Agency 
     (EPA) shall enter into an agreement with the National Academy 
     of Sciences (NAS) to conduct a comprehensive study of the 
     effects of

[[Page H9429]]

     copper in drinking water on human health. Once completed, the 
     Administrator of the EPA shall review the NAS study, and 
     report to the Congress on what plans the agency has to review 
     the copper action level pursuant to section 1412(b)(9) of the 
     Safe Drinking Water Act.


                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

       Appropriates $1,848,000,000 for environmental programs and 
     management instead of $1,856,000,000 as proposed by the House 
     and $1,840,500,000 as proposed by the Senate. The conferees 
     have included bill language providing a limitation on the use 
     of funds to implement or administer the interim guidance 
     relating to title VI of the Civil Rights Act of 1964, with 
     certain exceptions, as proposed by the House. The conferees 
     note that this provision does not provide the Agency 
     statutory authority to implement its Environmental Justice 
     Guidance. Rather, it simply clarifies the applicability of 
     the Interim Guidance with respect to certain pending cases as 
     an administrative convenience for the Agency. With respect to 
     any cases that may be pending before EPA and that are not or 
     will not be covered by the Interim Guidance, the conferees 
     urge EPA to resolve such cases as expeditiously as possible 
     and without undue delay.
       It is the conferees' understanding that the currently filed 
     South Bronx complaint is covered by the Interim Guidance and 
     should be dealt with expeditiously.
       The conferees have also adopted new language prohibiting 
     the use of funds to take certain actions for the purpose of 
     implementing or preparing to implement the Kyoto Protocol, 
     instead of language proposed by the House. The conferees note 
     that this restriction on the use of funds shall not apply to 
     the conduct of education activities and seminars by the 
     Agency.
       The conferees note that several programs funded through 
     this Act conduct science and technology research that are 
     associated partly with global climate change. To the extent 
     that the conferees have funded this work, they have done so 
     based on each program's individual merits of contributing to 
     issues associated with domestic energy production, national 
     energy security, energy efficiency and cost savings, related 
     environmental assessments, and general energy emission 
     improvements. The bill language is intended to prohibit funds 
     provided in this bill from being used to implement actions 
     called for solely under the Kyoto Protocol, prior to its 
     ratification.
       The Byrd-Hagel Resolution which passed in 1997 (S. Res. 98) 
     remains the clearest statement of the will of the Senate with 
     regards to the Kyoto Protocol, and the conferees are 
     committed to ensuring that the Administration not implement 
     the Kyoto Protocol without Congressional consent. The 
     conferees recognize, however, that there are also 
     longstanding energy research programs which have goals and 
     objectives that, if met, could have positive effects on 
     energy use and the environment. The conferees do not intend 
     to preclude these programs from proceeding, provided they 
     have been funded and approved by Congress.
       To the extent future funding requests may be submitted 
     which would increase funding for climate change activities 
     prior to Senate consideration of the Kyoto Protocol (whether 
     under the auspices of the Climate Change Technology 
     Initiative or any other initiative), the Administration must 
     do a better job of explaining the components of the programs, 
     their anticipated goals and objectives, the justification for 
     any funding increases, a discussion of how success will be 
     measured, and a clear definition of how these programs are 
     justified by goals and objectives independent of 
     implementation of the Kyoto Protocol. The conferees expect 
     these items to be included as part of the fiscal year 2000 
     budget submission for all affected agencies.
       The conferees have agreed to the following increases to the 
     budget request:
       1. $2,500,000 for the Michigan Biotechnology Institute for 
     continued development of viable cleanup technologies.
       2. $1,300,000 for the Lake Wallenpaupack, Pennsylvania 
     environmental restoration project.
       3. $130,000 for the Saint Vincent watershed environmental 
     restoration project.
       4. $500,000 for continued activities of the Small Business 
     Pollution Prevention Center at the University of Northern 
     Iowa.
       5. $1,300,000 for the Great Lakes National Program Office.
       6. $750,000 for the painting and coating compliance project 
     at the University of Northern Iowa.
       7. $550,000 for continuation of the Idaho Water Initiative.
       8. $1,700,000 for the Sacramento Regional County Sanitation 
     District to continue the cost-shared Sacramento River Toxic 
     Pollution Control Project. This appropriation and previously 
     appropriated funds shall be administered by the Sacramento 
     Regional County Sanitation District in accordance with the 
     workplans submitted by the District.
       9. $1,300,000 for continuation of a water reuse 
     demonstration project in Yucca Valley ($500,000) and the 
     continuation of a water distribution system study in Twenty-
     nine Palms ($800,000), California.
       10. $600,000 for ongoing activities at the Canaan Valley 
     Institute.
       11. $3,000,000 for the Southwest Center for Environmental 
     Research and Policy (SCERP).
       12. $2,600,000 for the National Institute for Environmental 
     Renewal to establish a regional environmental data center, 
     and to develop an integrated, automated water quality 
     monitoring and information system for watersheds impacting 
     the Chesapeake Bay.
       13. $500,000 for continuation of the Small Water Systems 
     Institute at Montana State University.
       14. $11,362,000 for rural water technical assistance 
     activities and groundwater protection for a total program 
     level of $13,050,000. The distribution of funds is as 
     follows: $8,000,000 for the National Rural Water Association; 
     $2,100,000 for the Rural Community Assistance Program; 
     $400,000 for the Groundwater Protection Council; $1,550,000 
     for Small Flows Clearinghouse; and $1,000,000 for the 
     National Environmental Training Center.
       15. $900,000 for implementation of the National Biosolids 
     Partnership Program.
       16. $3,000,000 for continuation of the New York and New 
     Jersey dredge decontamination project.
       17. $900,000 for continued work on the water quality 
     management plans for the Onondaga and Cayuga County, New York 
     watersheds.
       18. $400,000 for continued work on the Cortland County, New 
     York aquifer protection plan, $150,000 of which is for 
     planning and implementation of the Upper Susquehanna 
     watershed.
       19. $900,000 for continued work on the Soil Aquifer 
     Treatment Demonstration Project.
       20. $400,000 for operation of the Long Island Sound Office.
       21. $900,000 for the Southern Appalachian Mountain 
     Institute.
       22. $900,000 for continued operations of the California 
     Urban Environmental Research and Education Center.
       23. $1,300,000 for a one-year demonstration of Project 
     SEARCH (Special Environmental Assistance for Regulations of 
     Communities and Habitat) in Idaho.
       24. $2,200,000 for the National Center for Excellence for 
     Environmental Management at the University of Findlay.
       25. $400,000 to analyze the environmental and public health 
     impacts of waste transfer stations in Hunts Point, South 
     Bronx, New York, with inclusion of the community in the 
     design and implementation of the study.
       26. $100,000 to the Miami-Dade County Department of 
     Environmental Resources management to expand the existing 
     education program.
       27. $200,000 for the Snohomish River Basin Work Group to 
     perform a comprehensive watershed analysis, including a 
     quantitative water quality study of the Snohomish River. 
     Special attention in the study should be given to the lower 
     reaches of the river.
       28. $2,200,000 for the Federal Energy Technology Center and 
     EPA Region III to conduct a comprehensive acid mine drainage 
     cleanup program.
       29. $400,000 to initiate a surface water improvement 
     demonstration project in Mecklenberg, North Carolina.
       30. $125,000 to the University of Louisville for the 
     establishment of a regional environmental finance center at 
     the Kentucky Institute for the Environment and Sustainable 
     Development.
       31. $200,000 to Ventura County, California for development 
     of the Calleguas Creek watershed management plan.
       32. $2,600,000 to Lycoming County, Pennsylvania to assist 
     in the development of a comprehensive CSO plan.
       33. $2,200,000 to the Lake Pontchartrain Basin Foundation 
     circuit rider water quality initiative in Fluker Chapel and 
     Mandeville, Louisiana.
       34. $3,100,000 for the Environmental Technology 
     Commercialization Center (ETC2) in Cleveland, Ohio.
       35. $2,000,000 to support efforts to address the causes, 
     mechanisms, and health and environmental effects of 
     Pfiesteria.
       36. $500,000 for treatment of uranium contamination of well 
     heads within the Morongo Valley Community Service District, 
     California.
       37. $3,000,000 for the New River, California environmental 
     restoration project by the Imperial Irrigation District.
       38. $8,500,000 to the Salton Sea Authority for extensive 
     planning, development, and permitting requirements.
       39. $650,000 for water restoration activities at the City 
     of Stockton, California.
       40. $650,000 for watershed management initiatives at Santa 
     Ana River, Riverside County, California.
       41. $320,000 for the St. Mary's River, Maryland watershed 
     management and monitoring program.
       42. $1,500,000 for training grants under 104(g) of the 
     Clean Water Act.
       43. $500,000 for the Small Public Water System Technology 
     Center at Western Kentucky University.
       44. $500,000 for the Small Public Water System Technology 
     Center at the University of Missouri-Columbia.
       45. $500,000 for the Small Public Water System Technology 
     Center at the University of New Hampshire.
       46. $3,000,000 to continue the demonstration project 
     involving leaking fuel tanks in rural Alaska villages.
       47. $1,000,000 for water quality monitoring in the 
     Tennessee River basin through the Alabama Department of 
     Environmental Management.
       48. $1,250,000 to continue the onsite wastewater treatment 
     demonstration program through the Small Flows Clearinghouse.

[[Page H9430]]

       49. $2,000,000 for the New York City watershed protection 
     program.
       50. $500,000 for EPA's Office of Sustainable Ecosystems and 
     Communities and the Hawaii Department of Health to conduct 
     demonstration projects to aid communities on the islands of 
     Maui and Molokai to meet successfully the water quality 
     permitting requirements for rehabilitating native Hawaiian 
     fish ponds.
       51. $2,500,000 for the King County, Washington molten 
     carbonate fuel cell demonstration project.
       52. $800,000 for the National Center for Vehicle Emissions 
     Control and Safety for onboard diagnostic research.
       53. $5,000,000 under section 104(b) of the Clean Water Act 
     for America's Clean Water Foundation for implementation of 
     on-farm environmental assessments for hog production 
     operations, with the goal of improving surface and 
     groundwater quality.
       54. $500,000 for the Coordinated Tribal Water Quality 
     Program through the Northwest Indian Fisheries Commission.
       55. $500,000 for the Ala Wai Canal watershed improvement 
     project.
       56. $500,000 for a study of dioxin in the Ohio River basin.
       57. $100,000 to continue the Design for the Environment for 
     Farmers Program to address the unique environmental concerns 
     of the American Pacific area and the need to develop and 
     adopt sustainable agricultural practices for these fragile 
     tropical ecosystems.
       58. $1,000,000 for the Lake Champlain management plan.
       59. $1,500,000 for the National Alternative Fuels Vehicle 
     Training Program.
       60. $250,000 for a pilot program to evaluate the most cost-
     effective technologies for treating non-point sources of 
     phosphorus in the Lake Sammamish, Washington watershed.
       61. $250,000 to work with farmers and the Natural Resources 
     Conservation Service in Vermont to adopt best management 
     practices to reduce phosphorus runoff into Lake Memphremagog.
       62. $750,000 for the Chesapeake Bay Small Watershed Grants 
     Program.
       63. $1,000,000 to strengthen the State Small Business 
     Ombudsman and Technical Assistance programs as authorized by 
     section 507 of the Clean Air Act.
       64. $500,000 for the Office of Regulatory Management and 
     Information (ORMI) to involve small local governments in the 
     regulatory process as envisioned by the Regulatory 
     Flexibility Act (RFA) and the Small Business Regulatory 
     Enforcement Fairness Act (SBREFA). ORMI serves as the 
     coordinating body for EPA's SBREFA compliance. SBREFA and RFA 
     require EPA to notify small entities--small businesses and 
     small local governments--and actively involve them in the 
     rulemaking process, including participation on SBREFA panels.
       65. $200,000 for the Hawaii Department of Agriculture and 
     the University of Hawaii College of Tropical Agriculture and 
     Human Resources to develop agriculturally based remediation 
     technologies.
       66. $100,000 for the City of Philadelphia to study the 
     impact on the Delaware River watershed of vacant and 
     abandoned land in Philadelphia, determine the environmental 
     and economic benefits of remediation, and implement 
     mitigation measures.
       67. $2,000,000 for the Food and Agricultural Policy 
     Research Institute's Missouri watershed initiative project to 
     link economic and environmental data with ambient water 
     quality.
       68. $1,000,000 for the Animal Waste Management Consortium 
     through the University of Missouri, working with Iowa State, 
     North Carolina State, Michigan State, Oklahoma State, and 
     Purdue Universities to supplement ongoing research, 
     demonstration, and outreach projects associated with animal 
     waste management.
       69. $500,000 for the Environmentors projects involving the 
     matching of young people with environmental science 
     professionals to work on environmentally oriented research 
     projects.
       70. $1,000,000 for the City of West Palm Beach, Florida for 
     its wetlands-based potable water reuse program including 
     stormwater and wastewater recycling.
       71. $300,000 for the Dry Creek Channel project in Sandy, 
     Utah, to design and implement a non-point source project in 
     conjunction with the ongoing Jordan River non-point source 
     project, including the creation of wetlands to control urban 
     stormwater runoff.
       72. $2,000,000 for the University of Missouri Agroforestry 
     Center to support the agroforestry floodplain initiative on 
     non-point source pollution.
       73. $300,000 for the Northeast States for coordinated air 
     use management.
       74. $1,000,000 for the Columbia Basin groundwater 
     management assessment.
       75. $500,000 for the Urban Rivers Awareness Program at the 
     Academy of Natural Sciences in Philadelphia to develop a new 
     environmental science program.
       76. $2,000,000 for education, outreach, technical studies, 
     and training to minimize lead hazards created during home 
     improvement and repainting projects. To make lead dust 
     testing more available and affordable, the conferees urge EPA 
     to develop a relevant one-day sampling technician training 
     course and to encourage recognition of this discipline.
       77. $1,000,000 for an expansion of EPA's efforts related to 
     the government purchase and use of environmentally preferable 
     products under Executive Order 12873, including life cycle 
     analysis.
       78. $200,000 to develop a technical guidance manual for use 
     by permit reviewers and product specifiers to ensure 
     appropriate uses of preserved wood in applications including 
     housing, piers, docks, bridges, utility poles, and railroad 
     ties.
       79. $2,000,000 for the State of Missouri Department of 
     Natural Resources for a clandestine methamphetamine lab 
     cleanup project.
       80. $200,000 for the Fairmount Water Works Interpretive 
     Center for environmental education activities.
       81. $500,000 for the CCAR-Greenlink Compliance Assistance 
     Center.
       82. $500,000 for the City of Gainesville to address 
     stormwater discharges from the Sweetwater Basin into Paines 
     Prairie and the Florida Aquifer.
       83. $400,000 for the Small Water Systems Technology 
     Assistance Center at the University of Alaska in Sitka.
       84. $500,000 for the Treasure Valley Hydrologic project.
       85. $150,000 to sample and conduct hydrologic 
     investigations of occurrence, distribution, and 
     characteristics of radium in groundwater in the Magothy and 
     Patapsco Aquifers in Anne Arundel, Baltimore and Harford 
     Counties, Maryland.
       86. $225,000 to enable the EPA and the Maryland Bureau of 
     Mines to map and conduct a geologic/hydrologic investigation 
     of the Kempton Abandoned Mine Complex in West Virginia and 
     Maryland.
       87. $225,000 to support a cooperative research and 
     demonstration project with the State of Maryland to determine 
     the feasibility of using poultry litter as a fuel to generate 
     electric power.
       88. $400,000 for Iberville Parish, Louisiana, to complete 
     cleanup of Water District #3.
       The conferees have agreed to the following reductions from 
     the budget request:
       1. $1,598,000 from the Urban Livability Program.
       2. $1,000,000 from the OSWER Chemical Action Prevention 
     program.
       3. $1,000,000 from GLOBE.
       4. $9,638,000 from the Montreal Protocol Multilateral Fund.
       5. $86,002,000 from Climate Change Technology Initiative.
       6. $10,331,000 from Office of Enforcement programs.
       7. $11,500,000 from Project EMPACT.
       8. $126,218,000 as a general reduction. In determining the 
     base from which to apply the general reduction specified for 
     this account, the Agency shall first deduct from the total 
     the items of Congressional interest specifically listed in 
     the conference report and statement of the managers for the 
     fiscal year 1999 VA-HUD and Independent Agencies 
     Appropriations Act, and in the House and Senate Committee 
     reports.
       9. $5,000,000 from sustainable development challenge 
     grants.
       The National Estuary Program has been fully funded at the 
     budget request level, and the conferees direct that not more 
     than $4,300,000 of this amount is available for EPA's 
     intramural costs of the program. Similarly the conferees note 
     that the National Environmental Education and Training 
     Foundation has been funded at the statutory level.
       The conferees note the success of the cooperative lead-
     based paint real estate notification program, and have been 
     informed that additional resources for this program are no 
     longer necessary.
       Within the amounts provided for the Clean Water Action 
     Plan, $3,500,000 is intended to support groundwater and 
     source water protection efforts in priority watersheds that 
     primarily encompass small communities and/or rural areas. 
     These resources should support source water assessment and 
     protection activities at the local level, integration of 
     groundwater concerns into watershed assessment and 
     restoration plans, implementation of wellhead protection 
     programs locally, and/or field technicians supporting 
     communities considering new groundwater/source water 
     ordinances targeted at high risk watersheds. The primary 
     intent of this language is to assist small communities in 
     meeting Federal drinking water standards and to assist those 
     communities in contributing to the achievement of state water 
     quality standards. These funds are to be distributed through 
     a competitive solicitation and EPA is to report to the 
     Committees on Appropriations within 60 days of enactment of 
     this Act on its plans for such solicitation.
       The conferees are concerned regarding the progress that has 
     been made by the Agency in dealing with the matter of 
     potential security risks associated with EPA's proposal to 
     make available via the Internet or other means risk 
     management plan (RMP) data submitted to the Agency pursuant 
     to Clean Air Act section 112(r). The conferees strongly urge 
     that EPA continue to work on this issue in close consultation 
     with the Federal Bureau of Investigation and other security 
     experts so that EPA may implement distribution of the RMP 
     data in a manner that strikes the appropriate balance between 
     methods of public dissemination and legitimate national 
     security and anti-terrorist concerns. To that end, the 
     conferees direct the Federal Bureau of Investigation to 
     submit to Congress no later than December 1, 1998 a written 
     report containing the Bureau's recommendations for the 
     appropriate methods of public dissemination of RMP data 
     submitted to the EPA pursuant to Clean Air Act section 112(r) 
     and further direct the Agency

[[Page H9431]]

     to provide to the Congress monthly updates as to its progress 
     in working with the FBI and other Federal agencies to develop 
     appropriate RMP protocol guidelines. In this regard, the 
     conferees expect the Agency to include a final proposal, 
     including the use of such appropriate protocols, as part of 
     the fiscal year 1999 operation plan.
       The conferees are concerned that EPA is not providing for 
     adequate public participation in the proposed regional haze 
     rule-making. The conferees note that the EPA has noticed a 
     supplemental, but strictly limited, comment period on 
     ``information related'' to the proposed rule, i.e. the 
     proposal submitted by the Western Governors and the recently 
     enacted Inhofe Amendment to TEA-21. The conferees are 
     concerned, however, that the notice precludes adequate 
     discussion of the full WGA proposal and fails to provide 
     adequate notice of how EPA proposes to integrate the Inhofe 
     Amendment into the previously proposed rule. In addition to 
     the procedural flaws, the conferees are concerned about the 
     lack of consideration of issues that were inadequately 
     addressed in the proposed rule, such as smoke from fires on 
     public lands, road dust, and emissions from foreign sources, 
     and other significant issues raised by the States. EPA is 
     therefore strongly encouraged to re-propose the regional 
     haze rule in its entirety for public comment so that the 
     public can understand how EPA proposes to integrate these 
     important issues into the rule. Finally, the conferees 
     note with approval the House committee report language 
     providing resources for the formation of additional 
     visibility transport commissions to define reasonable 
     progress for improving visibility in their respective 
     Class I areas.
       The conferees urge EPA to (1) develop, after a period of 
     public comment, a guidance document to facilitate the conduct 
     of water quality and designated use reviews for CSO-receiving 
     waters; (2) provide technical and financial assistance to 
     states and EPA regions to conduct these reviews; and (3) 
     submit a report to the relevant authorizing and 
     appropriations committees of the House and Senate by December 
     1, 1999 on the progress of meeting the requirements set forth 
     above.
       Of the funds provided for the Chesapeake Bay Program, the 
     conferees direct that $200,000 shall be made available for 
     the Alliance for the Chesapeake Bay to conduct a 
     comprehensive evaluation of the Program, including a review 
     of the institutional framework, progress in meeting watershed 
     restoration commitments, and emerging issues which may affect 
     present and future estuary conditions. The conferees expect 
     the report to include options and recommendations for 
     improving the Chesapeake Bay Program and be used as the basis 
     for the development of a comprehensive plan to guide the 
     restoration effort as it continues beyond the year 2000. The 
     report and plan shall be completed for review and adoption by 
     the Executive Council no later than the end of calendar year 
     2000.
       Additionally, the conferees encourage the Agency to study 
     the feasibility of real time automated water quality 
     monitoring within the watershed of the Chesapeake Bay at its 
     tributaries.
       The conferees are concerned that the EPA has acted 
     unilaterally to contract with a private entity for a study of 
     the Salton Sea, and that this study will address matters 
     related to the allocation of Colorado River waters, which is 
     the exclusive responsibility of the Secretary of the 
     Interior. The Administrator is directed to consult with the 
     Salton Sea Authority and the Secretary of the Interior before 
     initiating any action related to the Salton Sea, and the 
     Administrator is prohibited from using any funds to support 
     any work or work product related to the allocation of water 
     from the Colorado River.
       The conferees commend the work done by the Safety, Health 
     and Environmental Management Division in the Office of 
     Administration for their work to develop peer-reviewed tools 
     and products for use by EPA and other Federal agencies to 
     improve their compliance with environmental and occupational 
     health and safety requirements. Particular note is taken of 
     the thorough and effective use of peer review. The Agency is 
     urged to assess the feasibility of making these important 
     compliance tools available to state and local governments.
       The conferees recognize the Agency's efforts in issuing a 
     rule regarding the safe handling of halons. This rule, if 
     properly enforced, should assure continued significant 
     environmental benefits while placing only minimal burdens on 
     industry. The conferees are concerned that the rule as 
     written does not provide adequate guidance to the fire 
     protection industry and others who handle halons as to what 
     operating policies should be followed to comply with the 
     rule.
       The conferees strongly encourage the EPA to achieve 
     compliance with this rule by requiring that no persons or 
     entities may dispose of halon-containing equipment except by 
     sending it for halon recycling to a manufacturer, fire 
     equipment dealer, or recycler operating in accordance with 
     ASTM, NFPA, and/or ISO industry standards (as referenced in 
     the preamble of rule 63 Fed. Reg. 11084, March 5, 1998) and 
     that no persons or entities shall dispose of halon or import 
     halon which is recovered but not reclaimed except by sending 
     it for halon recycling to a recycler operating in accordance 
     with the ASTM, NFPA, and/or ISO industry standard. Imported 
     reclaimed halon must meet industry standards.
       EPA recently issued two reports to Congress addressing 
     mercury emissions, including the ``Mercury Study Report to 
     Congress,'' issued in December, 1997, and the ``Study of 
     Hazardous Air Pollutant (HAP) Emissions from Electric Utility 
     Steam Generating Units-Final Report to Congress,'' issued in 
     February, 1998. In April, 1998, EPA entered into a settlement 
     agreement whereby the Agency intends to make a regulatory 
     determination by November 15, 1998 regarding the potential 
     need for controls on utility mercury emissions. Research 
     needs in this regard include unresolved issues about mercury 
     speciation and the transport, fate, and effects of mercury. 
     Moreover, currently there are no commercially available, 
     cost-effective technologies to significantly control mercury 
     emissions from utilities.
       In order to help fill research gaps, EPA is participating 
     in funding: (1) the joint Federal-State Lake Superior Study 
     on mercury transport; and (2) the government-wide National 
     Health and Nutrition Examination Survey on fish consumption 
     and mercury ingestion. In addition to these studies, EPA is 
     directed to enter into a contract, within 60 days of the 
     enactment of this Act, with the National Academy of Sciences 
     (NAS) to perform a comprehensive review of mercury health 
     research and prepare recommendations on the appropriate level 
     for a mercury exposure reference dose. The conferees intend 
     that the NAS complete the study and recommendations within 18 
     months of entering into this contract, complete all work 
     within a budget of $1,000,000 of available EPA funds. It is 
     the conferees intent that there be no further extension of 
     time for completion of the NAS study beyond 18 months from 
     the date of the EPA contract. Finally, it is also the 
     conferees intent that EPA not issue any regulatory 
     determination for mercury emissions from utilities until EPA 
     reviews the results of the NAS study.


                      office of inspector general

       Appropriates $31,154,000 for Office of Inspector General, 
     the same as proposed by the House and the Senate.


                        buildings and facilities

       Appropriates $56,948,000 for buildings and facilities 
     instead of $60,948,000 as proposed by the House and 
     $52,948,000 as proposed by the Senate. The conferees have 
     provided $36,000,000 for continued construction of the new 
     consolidated research facility at Research Triangle Park, 
     North Carolina. With this year's funding, the conferees note 
     that some $236,000,000 of the $272,700,000 authorized for 
     this project has been appropriated.


                     hazardous substance superfund

       Appropriates $1,500,000,000 for hazardous substance 
     superfund as proposed by both the House and the Senate. The 
     conferees have included bill language making available for 
     obligation on October 1, 1999 an additional $650,000,000 for 
     Superfund response actions, only if specific reauthorization 
     of the Superfund occurs on or before August 1, 1999. The 
     language requires the Congressional Budget Office to make 
     appropriate scorekeeping adjustments if such reauthorization 
     does not occur.
       The conferees have also included bill language which 
     deletes the sunset provisions contained in sections 119 
     (e)(2)(C) and 119 (g)(5) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980. The 
     deletion of these two provisions will make it possible for 
     Superfund cleanup contractors to obtain more easily surety 
     bonds for new contracts.
       The conferees have agreed to the following fiscal year 1999 
     program levels:
       $1,000,000,000 for Superfund response/ cleanup actions, 
     including the budget request for Brownfields.
       $155,000,000 for enforcement activities.
       $130,000,000 for management and support, including 
     $12,237,000 for the Office of Inspector General.
       $40,000,000 for research and development activities, to be 
     transferred to the Science and Technology account.
       $60,000,000 for the National Institute of Environmental 
     Health Sciences, including $23,000,000 for worker training 
     and $37,000,000 for research activities.
       $76,000,000 for the Agency for Toxic Substances and Disease 
     Registry. Included within this level of funding is $2,000,000 
     for new children's health and medical monitoring activities, 
     subject to a detailed spending plan to be submitted as part 
     of the fiscal year 1999 operating plan. Also included within 
     the funds provided herein is $4,000,000 for minority health 
     professions, $2,500,000 for continuation of a health effects 
     study on the consumption of Great Lakes fish, and $2,000,000 
     for continued work on the Toms River, New Jersey cancer 
     evaluation and research project.
       $39,000,000 for interagency activities, including 
     $29,000,000 for activities of the Department of Justice, 
     $650,000 for OSHA, $1,100,000 for FEMA, $2,450,000 for NOAA, 
     $4,800,000 for the Coast Guard, and $1,000,000 for the 
     Department of the Interior.
       While the conferees have again this year provided the full 
     budget request of $91,000,000 for the Brownfields program, 
     there nevertheless remains concern that this growing program, 
     though very important and worthy, is draining scarce 
     resources from the equally important and worthy Superfund 
     response program. In the short-term, the conferees strongly 
     urge the Agency to fully review this program and make program 
     reductions wherever feasible which do not adversely impact 
     the integrity of the program. For the long-term, the 
     conferees request the Agency to review other possible means 
     of funding this

[[Page H9432]]

     program and report back to the Committees on Appropriations 
     by April 1, 1999 on the results of this review.
       The conferees remain concerned that EPA has begun cleanup 
     activities at the Agriculture Street, New Orleans landfill 
     Superfund site without including the option of using buyout 
     authority. The conferees expect the Agency to continue to 
     explore aggressively this option with local authorities, as 
     well as other Federal agencies for a possible solution. The 
     Agency is directed to report back to the Committees on 
     Appropriations by January 15, 1999 on actions to address this 
     problem.
       The conferees expect EPA to finalize the guidance document 
     governing disbursements of funds to parties performing 
     response actions at a site where a special account has been 
     established. The conferees further direct that special 
     account funds be appropriately disbursed to the parties 
     consenting to undertake response actions at the facility to 
     reimburse such response efforts. The conferees recognize that 
     the Agency is entitled to a reasonable retention of special 
     account funds for past and future response costs of the 
     United States and any affected State.


                leaking underground storage tank program

       Appropriates $72,500,000 for leaking underground storage 
     tank program instead of $70,000,000 as provided by the House 
     and $75,000,000 as provided by the Senate. Bill language has 
     been included which expands the use of LUST funds pursuant to 
     new authorization under section 9004 (f) of the Solid Waste 
     Disposal Act.
       Again this year, the conferees direct that no less than 85 
     percent of the appropriated level be provided to the states 
     and tribal governments.


                           oil spill response

       Appropriates $15,000,000 for oil spill response, the same 
     as proposed by the House and the Senate.


                   state and tribal assistance grants

       Appropriates $3,386,750,000 for state and tribal assistance 
     grants instead of $3,233,132,000 as proposed by the House and 
     $3,255,000,000 as proposed by the Senate.
       Bill language provides the following program levels:
       $1,350,000,000 for Clean Water State Revolving Fund 
     capitalization grants.
       $775,000,000 for Safe Drinking Water State Revolving Fund 
     capitalization grants.
       $880,000,000 for state and tribal program/categorical 
     grants, including $200,000,000 for section 319 non-point 
     source pollution grants, $115,529,300 for section 106 water 
     quality grants, and an increase above the budget request of 
     $5,343,000 for section 103/105 air quality grants. The 
     conferees note that the Clean Water Action Plan has been 
     fully funded at the budget request level.
       $50,000,000 for high priority U.S./ Mexico border projects. 
     Within this amount, the conferees have provided $1,000,000 
     for the U.S./Mexico Foundation for Science. The amount 
     provided for fiscal year 1999 represents a decrease of 
     $25,000,000 below the fiscal year 1998 level. The conferees 
     have agreed to this reduction in view of the fact that the 
     recipients of border funds-principally the International 
     Boundary and Water Commission, the North American Development 
     Bank, and the Border Environment Cooperation Commission-have 
     been slow to make project commitments. Of the $375,000,000 
     appropriated to date for this program, EPA anticipates it 
     will have $124,000,000 that has not been committed to a 
     particular project by the end of the fiscal year.
       $30,000,000 for grants to address drinking water and 
     wastewater infrastructure needs of Alaska rural and native 
     villages.
       $301,750,000 for special needs drinking water, wastewater 
     and groundwater infrastructure grants.
       The conferees have included bill language which reaffirms 
     that funds appropriated this year, and in previous years, for 
     grants for Drinking Water State Revolving Funds and other 
     water infrastructure grant programs under section 1452 of the 
     Safe Drinking Water Act are not to be reserved by the 
     Administrator for conducting drinking water health effect 
     studies. As in previous years, funding for health effects 
     studies is provided under the Science and Technology account.
       Bill language has also been included which for fiscal year 
     1999 and prior years permits states to include as principal 
     amounts considered to be the cost of administering State 
     Revolving Fund loans to eligible borrowers.
       The conferees note that the categorical grant activity 
     contains the following environmental grants, State/tribal 
     program grants, and assistance and capacity building grants: 
     (1) nonpoint source (sec. 319 of the Federal Water 
     Pollution Control Act); (2) water quality cooperative 
     agreements (sec. 104(b)(3) of FWPCA); (3) public water 
     system supervision; (4) air resource assistance to State, 
     local, and tribal governments (secs. 105 and 103 of the 
     Clean Air Act); (5) radon State grants; (6) water 
     pollution control agency resource supplementation (sec. 
     106 of the FWPCA); (7) wetlands State program development; 
     (8) underground injection control; (9) Pesticides Program 
     implementation; (10) lead grants; (11) hazardous waste 
     financial assistance; (12) pesticides enforcement grants; 
     (13) pollution prevention; (14) toxic substances 
     enforcement grants; (15) Indians general assistance 
     grants; and, (16) underground storage tanks. The funds 
     provided in this account, exclusive of the funds for the 
     SRFs and the special water and wastewater treatment 
     projects, may be used by the Agency to enter into 
     performance partnerships with States and tribes rather 
     than media-specific categorical program grants, if 
     requested by the States and tribes. The performance 
     partnership/categorical grants are exempt from the 
     Congressional reprogramming limitation.
       The conferees agree that the special needs funds are 
     provided as follows:
       1. $30,000,000 for Boston Harbor wastewater needs.
       2. $2,610,000 for continued wastewater needs in Bristol 
     County, Massachusetts.
       3. $6,525,000 for New Orleans wastewater needs.
       4. $11,310,000 to implement combined sewer overflow 
     improvements in Richmond ($5,655,000) and Lynchburg, 
     ($5,655,000), Virginia.
       5. $8,700,000 for continuation of the Rouge River National 
     Wet Weather Demonstration project.
       6. $3,045,000 for wastewater, sewer overflow, and water 
     system needs of the Westfall Municipal Sewage Authority 
     ($1,740,000), and Jefferson Township, Lackawanna County 
     ($1,305,000), Pennsylvania .
       7. $1,000,000 for the Olivenhain, California water 
     infrastructure project.
       8. $870,000 for the combined sewer overflow project for 
     Sacramento, California.
       9. $8,700,000 for water system improvements at Lake 
     Hopatcong, New Jersey.
       10. $13,050,000 for continued planning and implementation 
     of a storm water abatement system in the Doan Brook Watershed 
     Area, Ohio.
       11. $7,395,000 for wastewater infrastructure needs for 
     Jefferson Parish ($2,350,000); Baton Rouge ($2,000,000); and 
     Grand Isle ($3,045,000), Louisiana.
       12. $8,700,000 for alternative water source development for 
     the Southwest Florida, St. John's River, Northwest Florida, 
     and South Florida Water Management Districts.
       13. $1,800,000 for wastewater infrastructure improvements 
     for the City of Port Huron, Michigan.
       14. $2,175,000 for the Grand Rapids, Michigan combined 
     sewer overflow project.
       15. $2,828,000 for water system and wastewater 
     infrastructure requirements for the Somerset Township 
     Municipal Authority ($1,088,000) and for the Johnstown-
     Cambria County Airport ($1,740,000), Pennsylvania.
       16. $1,305,000 for ongoing work at the Geysers Recharge 
     Project in Northern California.
       17. $8,700,000 for continued clean water improvements of 
     Onondaga Lake.
       18. $7,047,000 for wastewater and water system improvement 
     needs for the Centerville/Cumberland Valley Township 
     ($261,000); the Houtzdale Borough Municipal Authority 
     ($174,000); the Northern Blair Regional Sewer Authority 
     ($696,000); the Richfield Borough Joint Municipal 
     Authority ($348,000); Chambersburgh Borough ($2,175,000); 
     the Letterkenny Reuse Authority ($522,000); the Lewistown 
     Municipal Water Authority ($696,000); and the 
     Hollidaysburg Borough ($2,175,000), Pennsylvania.
       19. $8,700,000 for water supply and wastewater needs for 
     the City of Paintsville ($1,900,000); Pike County, Mountain 
     Water District ($2,200,000); the City of Fleming Neon 
     ($1,500,000); the City of Salyersville ($500,000); Wolfe 
     County ($1,700,000); and the City of Booneville ($900,000), 
     Kentucky.
       20. $2,610,000 for wastewater infrastructure improvements 
     at Artesia, New Mexico.
       21. $4,000,000 for the St. Louis Metropolitan Sewer 
     District Meramac River enhancement and wetlands protection 
     project.
       22. $5,350,000 for wastewater and sewer infrastructure 
     needs for DeSoto County ($2,675,000) and the City of Jackson 
     ($2,675,000), Mississippi.
       23. $1,740,000 for wastewater facilities and improvements 
     in Essex County, Massachsetts.
       24. $3,000,000 for the Milwaukee Metropolitan Sewerage 
     District interceptor system.
       25. $1,305,000 for the Miami-Dade County sanitary sewer 
     overflow demonstration project.
       26. $2,610,000 for wastewater improvements at Florida City, 
     Florida.
       27. $2,450,000 for the basin stormwater retention and reuse 
     project at Big Haynes Creek, Georgia.
       28. $5,655,000 for the tunnel and reservoir project (TARP) 
     of the Metropolitan Water Reclamation District in Chicago, 
     Illinois.
       29. $5,000,000 for sewer and stormwater infrastructure 
     needs at Bozeman, Montana.
       30. $4,900,000 for the Mille Lacs regional wastewater 
     treatment facility, Minnesota.
       31. $1,555,000 for wastewater, sewer, and water 
     infrastructure needs in Lovelock ($1,305,000) and Moapa 
     Valley Water District ($250,000), Nevada.
       32. $3,750,000 for combined sewer overflow requirements of 
     the Passaic Valley Sewerage Commission, New Jersey.
       33. $12,500,000 for water, wastewater, and system 
     infrastructure development and improvements for the Yucaipa 
     Valley Water District ($4,500,000); the Lower Owens River 
     Project in Inyo County ($3,000,000); the City of Barstow 
     ($3,000,000); and the San Timoteo Creek environmental 
     restoration project in Loma Linda ($2,000,000), California.
       34. $1,740,000 for water reuse system improvements for 
     Riverton, Utah.
       35. $2,500,000 for water supply needs for Brownsville, 
     Texas.
       36. $1,741,000 for drinking water infrastructure needs for 
     White Oak, Wolfe Branch Utility District ($653,000), and for 
     Frankfort, Potter Chapel, and the Island Ford area, Sunbright 
     Utility District ($1,088,000), Tennessee.

[[Page H9433]]

       37. $4,350,000 for sewage treatment facilities to reduce 
     nitrogen flowing into the Susquehanna River and ultimately 
     into the Chesapeake Bay.
       38. $283,000 for the reservoir restoration project in 
     Albemarle City, North Carolina.
       39. $1,305,000 for the water runoff and sewer treatment 
     program of the San Diego Coastal Low Flow Storm Diversion 
     Project.
       40. $1,435,000 for wastewater infrastructure improvements 
     for Springettsbury Township/City of York ($1,000,000) and 
     Delta Borough ($435,000), Pennsylvania.
       41. $2,133,000 for wastewater infrastructure improvements 
     for the City of San Diego, California.
       42. $3,000,000 for water supply needs of the Lake Marion 
     Regional Water Agency, South Carolina.
       43. $500,000 for a groundwater replenishment system for 
     Orange County, California.
       44. $1,305,000 for the Connecticut River, Massachusetts and 
     Connecticut combined sewer overflow project.
       45. $653,000 for the interceptor collection project at 
     Avondale, Arizona.
       46. $870,000 for the MERTS wastewater treatment facility at 
     South Tongue Point, Oregon.
       47. $1,000,000 for the Sonoma County Water Agency, Russian 
     River Restoration project.
       48. $2,500,000 for completion of the export pipeline 
     replacement to protect Lake Tahoe.
       49. $2,200,000 for the Charleston Water Conservancy 
     District, Utah to meet sewer infrastructure needs associated 
     with the 2002 Winter Olympic games.
       50. $1,000,000 for the Ogden City, Utah water and sewer 
     system.
       51. $1,600,000 for the town of Mountain Village and 
     Telluride, Colorado for a shared sewer system upgrade.
       52. $2,500,000 for the City of Winterset, Iowa for sewer 
     system improvements.
       53. $7,000,000 for the Village of Hempstead, New York for 
     water system improvements.
       54. $500,000 for the City of Hartford, South Dakota for the 
     upgrade of its wastewater treatment plant.
       55. $2,000,000 for the City of Berlin, New Hampshire for 
     water infrastructure improvements.
       56. $5,000,000 for the City of Cumberland, Maryland to 
     separate and relocate the city's combined sewer and 
     stormwater system.
       57. $4,750,000 for improvements to the St. Maries, Idaho 
     drinking water system.
       58. $1,200,000 for the village of Jemez Springs, New Mexico 
     to improve its wastewater treatment system.
       59. $3,500,000 for the City of Springfield, Vermont to 
     upgrade its wastewater system.
       60. $4,900,000 for the City of Grand Forks, North Dakota 
     water treatment plant relocation project.
       61. $5,600,000 for the Eastern Band of Cherokee Indians, 
     North Carolina, Big Cove Community wastewater collection 
     project.
       62. $8,000,000 for Jackson County, Mississippi for 
     remaining construction of pipeline and water treatment 
     improvements.
       63. $2,000,000 for Anderson County, Kentucky to renovate 
     the Alton Water District's sewer system.
       64. $1,550,000 for the City of Kinston, North Carolina 
     wastewater treatment improvements.
       65. $350,000 for the Green River Water District, Hart 
     County, Kentucky, for water system improvements.
       66. $1,200,000 for the Matanuska-Susitna Borough, Alaska 
     water and sewer improvements.
       67. $1,700,000 for the City of Anchorage for water system 
     improvements involving the town of Girdwood, Alaska.
       68. $1,000,000 for the City of Fairbanks, Alaska for water 
     system improvements.
       69. $1,000,000 for the Middleburg/Franklin Township, 
     Pennsylvania wastewater improvement project.
       70. $2,250,000 for the City of Sparks, Nevada to construct 
     a water treatment facility including nitrogen removal.
       71. $3,000,000 for Geneva County, Alabama drinking water 
     system improvements.
       72. $1,000,000 for the Goodwater Utilities Board, Alabama 
     to connect the town of Goodwater with Alexander City.
       73. $4,000,000 for the Kansas City Blue River wastewater 
     treatment plant improvements.
       74. $1,000,000 for Somerset County, Maryland wastewater 
     treatment improvements in support of biological nutrient 
     removal.
       75. $2,500,000 for the three rivers wet weather 
     demonstration project, Allegheny County, Pennsylvania, to 
     eliminate separate sewer flows.
       76. $1,000,000 to support Springfield, Missouri efforts for 
     phosphorus removal at the Southwest Wastewater Treatment 
     Plant.
       77. $10,000,000 for a National Community Decentralized 
     Wastewater Demonstration Project. The conferees expect this 
     project will help ``jump start'' the process of technology 
     transfer of various decentralized wastewater treatment 
     options. Three geographically and geologically diverse sites 
     have been determined for this project, and include Warren, 
     Vermont ($1,500,000), Block Island/Green Hill Pond, Rhode 
     Island ($3,000,000), and LaPine, Deschutes County, Oregon 
     ($5,500,000). Each of these communities has already expended 
     considerable resources in the development of these projects, 
     and it is the conferees intention that such previous 
     expenditures be counted toward a local cost share for these 
     projects only of 25 percent.
       78. $1,000,000 for the City of Arnold, Pennsylvania for 
     sewer system infrastructure improvements.
       79. $250,000 for the City of McCall, Idaho for water 
     infrastructure improvements, including filtration needs.
       80. $1,000,000 for wastewater treatment system improvements 
     in the Lake Tomahawk Sanitary District, Wisconsin.


                          working capital fund

        The conferees have included bill language which makes 
     technical changes to the Agency's Working Capital Fund.


                        administrative provision

        The conferees have included new language, in lieu of 
     language proposed by the Senate, which limits the use of 
     appropriated funds to issue or to establish an interpretation 
     or guidance relating to fats, oils, and greases which does 
     not recognize and provide for the differences of 
     environmental effects and physical, chemical, biological, and 
     other characteristics of edible and non-edible fats, oils, 
     and greases as defined in the Edible Oil Regulatory Reform 
     Act, Public Law 104-55. The language further requires the 
     Administrator to issue regulations amending 40 C.F.R. 112 to 
     comply with the requirements of Public Law 104-55 not later 
     than March 31, 1999.
        The conferees have not included bill language proposed by 
     the Senate regarding a limitation on the use of funds to 
     enable the export of government-owned ships for dismantling.

                   Executive Office of the President


                Office of Science and Technology Policy

       The conferees are in receipt of a report on Nuclear 
     Magnetic Resonance (NMR) technology which focuses on new 
     research opportunities. The report was developed by a 
     committee of renowned NMR spectroscopists, assembled at the 
     suggestion of the National Science Foundation. This recently 
     released report calls for interagency collaboration to expand 
     utilization of NMR. The conferees encourage the Science 
     Advisor to review this report and, if appropriate, assist in 
     developing an interagency solution for this important 
     opportunity.


  COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF ENVIRONMENTAL QUALITY

       Appropriates $2,675,000 for the Council on Environmental 
     Quality and Office of Environmental Quality as proposed by 
     the House instead of $2,575,000 as proposed by the Senate. 
     The conferees direct that no less than $100,000 of the 
     appropriated amount be used by CEQ for work on the NEPA 
     Reinvention project. The conferees expect that, among other 
     Reinvention activities, CEQ will use these funds to support 
     efforts to establish a memorandum of understanding between 
     the Federal Energy Regulatory Commission and other 
     appropriate Federal departments and agencies to expedite 
     review of natural gas pipeline projects.
       Again this year, bill language has been included which 
     stipulates that for fiscal year 1999 there will be just one 
     member of the Council on Environmental Quality and that 
     individual will serve as chairman. Language is also included 
     again this year which prohibits CEQ from using funds other 
     than those appropriated directly to CEQ under this heading. 
     The conferees expect CEQ to implement this provision in a 
     manner consistent with its implementation during fiscal year 
     1998.

                  Federal Emergency Management Agency


                            disaster relief

       Appropriates $307,745,000 for disaster relief as proposed 
     by the House instead of $846,000,000 as proposed by the 
     Senate.
       The conferees have agreed to include language in the bill 
     making available $40,000,000 from section 404 hazard 
     mitigation grant funding available to the State of California 
     for pilot projects to demonstrate seismic retrofit 
     technology. Of this amount, FEMA is directed to use 
     $5,000,000 in fiscal year 1999 to conduct a pilot project of 
     seismic retrofit technology on an existing welded steel frame 
     building at California State University, San Bernardino. FEMA 
     is directed to report to the Committees on Appropriations of 
     the House and Senate, on or before March 31, 1999, and again 
     on or before June 30, 1999, regarding progress made toward 
     completion of this retrofit and development of an essential 
     data base. The conferees recommend that FEMA establish a 
     steering committee to receive input from industry 
     associations and the technical community regarding the 
     appropriate use of updated building codes and industry 
     standards in performing this type of retrofit.


                         Salaries and Expenses

       Appropriates $171,138,000 for salaries and expenses as 
     proposed by the House instead of $170,000,000 as proposed by 
     the Senate.
       While the conferees are unable to provide additional funds 
     for salaries and expenses above the original budget request, 
     the conferees strongly support adequate funding for 
     consequence management planning activities associated with 
     preparing for a terrorist incident involving chemical and/or 
     biological weapons, and urge FEMA to make necessary resources 
     available for such activities.
       The conferees direct FEMA to provide $400,000 and necessary 
     workyears, in addition to funds requested in the budget, to 
     administer the dam safety program as authorized by section 
     12(e) of the National Dam Safety Program Act.
       The conferees understand that there may be a need for a new 
     headquarters facility for FEMA which meets its special needs. 
     The Agency should review this matter and, if appropriate, 
     develop a workable plan to address this requirement.

[[Page H9434]]

                      Office of Inspector General

       Appropriates $5,400,000 for the Office of Inspector General 
     as proposed by the Senate instead of $4,930,000 as proposed 
     by the House.


              Emergency Management Planning and Assistance

       Appropriates $240,824,000 for emergency management planning 
     and assistance instead of $231,674,000 as proposed by the 
     House and $239,000,000 as proposed by the Senate.
       The conferees agree to provide $25,000,000 for the Project 
     Impact program; $11,000,000 to address the requirements 
     outlined in the July 9, 1998 budget amendment for anti-
     terrorism; $3,500,000 for an emergency operations center in 
     Monroe County, Pennsylvania; $1,000,000 for a pilot program 
     to demonstrate two-foot contour mapping by the Louisiana Oil 
     Spill Coordinator's Office; $1,600,000 for development of an 
     emergency communications system for Pointe Coupe Parish, 
     Louisiana; and $400,000 for a University of Missouri-Columbia 
     Fire and Rescue Training Institute pilot program for hazards 
     materials response training.
       The conferees have included language in the bill which 
     modifies the House language with regard to a smoke detector 
     pilot project. The conferees agree that $750,000 is to be 
     provided to the U.S. Fire Administration to conduct a nation-
     wide pilot project to distribute smoke detectors in the 20 
     statistical areas at highest risk for residential fires. The 
     program should also include an educational component designed 
     to encourage the proper installation and maintenance of smoke 
     detectors. The conferees note that previous smoke detector 
     distribution and education programs have been successful 
     by enlisting the support and cooperation of various state 
     and local departments or organizations, and the Fire 
     Administrator is encouraged to pursue such cooperation. 
     The U.S. Fire Administration shall transmit the results of 
     its pilot project to the Congress and the Consumer Product 
     Safety Commission upon completion of the project.
       In addition, the conferees agree to provide a total of 
     $3,500,000 for the Dam Safety Program which is $2,000,000 
     above the budget request; and an increase of $5,500,000 for 
     State and Local Assistance grants. The conferees expect state 
     and local authorities to plan for a 50-50 cost share starting 
     with fiscal year 2000. Finally, the conferees have included 
     $824,000 for MERS equipment and direct FEMA to provide a 
     report to the Committees on Appropriations which outlines the 
     total requirements for the MERS program.


                     National Flood Insurance Fund

       The conferees have included bill language which authorizes 
     the National Flood Insurance Program for fiscal year 1999. 
     Without this authorization, new flood insurance policies 
     could not be written throughout the fiscal year.

                    General Services Administration


                      Consumer Information Center

       Appropriates $2,619,000 for the Consumer Information Center 
     as proposed by the House instead of $2,419,000 as proposed by 
     the Senate.

             National Aeronautics and Space Administration

       Appropriates a total of $13,665,000,000 for National 
     Aeronautics and Space Administration instead of 
     $13,328,200,000 as proposed by the House and $13,615,000,000 
     as proposed by the Senate.
        The conferees have included bill language in section 434 
     renaming NASA's Lewis Research Center in Cleveland, Ohio the 
     John H. Glenn Research Center at Lewis Field, in honor of 
     retiring U.S. Senator John H. Glenn. The conferees are taking 
     this action in recognition of Senator Glenn's significant 
     contributions and achievements in the field of space 
     exploration and research.
       The conferees agree to retain the current NASA account 
     structure for fiscal year 1999, but have included provisions 
     which will restrict the use of non-space station funds for 
     space station related activities. The conferees direct NASA 
     to provide as part of its fiscal year 2000 budget submission 
     a separate account for the international space station. The 
     conferees have taken this action because of concern that the 
     current account structure may facilitate the easy movement of 
     funding from other human space flight activities into the 
     space station program without timely or adequate notification 
     to the Congress.
       The conferees agree to remove language included in the 
     House bill which prohibits the use of fiscal year 1999 funds 
     for initiation of the Triana mission to be positioned at the 
     Earth-Sun LaGrange-1 point. The conferees understand that 
     NASA has selected a peer reviewed mission concept with 
     enhanced science, which may also incorporate commercial 
     involvement. The conferees understand that the enhanced 
     mission estimate is $75,000,000, with a Shuttle launch by 
     December 2000, and expect that NASA will outline a funding 
     plan for initiation of Triana in the operating plan.
       The conferees agree to include a general provision which 
     provides indemnification and cross-waivers of liability with 
     regard to the X-33 and X-34 programs. The language included 
     in the conference agreement is the Senate bill language with 
     some technical changes.
       Of the amounts approved in the following appropriations 
     accounts, NASA must limit transfers of funds between programs 
     and activities to not more than $500,000 without prior 
     approval of the Committees on Appropriations. Further, no 
     changes may be made to any account or program element if it 
     is construed to be policy or a change in policy. Any activity 
     or program cited in this report shall be construed as the 
     position of the conferees and should not be subject to 
     reductions or reprogramming without prior approval of the 
     Committees on Appropriations of the House and Senate. 
     Finally, it is the intent of the conferees that all carryover 
     funds in the various appropriations accounts be subject to 
     the normal reprogramming requirements outlined above.
       In determining the base from which to apply the general 
     reductions for NASA, the Agency shall first deduct from the 
     total the items of Congressional interest specifically listed 
     in the conference report and statement of the managers for 
     the fiscal year 1999 VA-HUD and Independent Agencies 
     Appropriations Act, and in the House and Senate Committee 
     reports.


                           HUMAN SPACE FLIGHT

       Appropriates $5,480,000,000 for human space flight. The 
     House had proposed $5,309,000,000 in this account. The Senate 
     had proposed two new accounts, International Space Station 
     and Launch Vehicles and Payload Operations, with a total of 
     $5,541,000,000. Within the amount provided, the appropriation 
     for space shuttle is $3,028,000,000, the appropriation for 
     payload and utilization is $182,000,000, and the 
     appropriation for space station development related 
     activities is $2,270,000,000.
       The amount provided for space shuttle operations is 
     $31,000,000 below the budget request. These funds have been 
     transferred to the mission support account to cover emergent 
     requirements in the areas of personnel compensation and 
     travel. In addition, the conferees direct NASA to provide 
     $3,000,000 for the U.S. Space and Rocket Center in 
     Huntsville, Alabama.
       The amount provided for the international space station 
     program is $2,270,000,000, the same as the budget request. 
     The first two elements of the station are essentially ready 
     for launch in November and December of 1998. The critical 
     third element, the Russian-provided service module, still 
     requires some assembly and has been scheduled for launch in 
     April of 1999. Currently the launch date of the service 
     module is in a state of flux and further delay will most 
     likely occur. The conferees are very concerned about the 
     status of the space station development schedule and in 
     particular the impact of the economic and political situation 
     in Russia. Because of this concern, the conferees will not 
     endorse fiscal year 1999 transfer payments to the Russian 
     Government at this time. The conferees have included a 
     general provision which directs NASA to explore avenues other 
     than government to government transfer payments to ensure 
     adequate funding finds its way to the enterprises which are 
     providing services and equipment for the space station 
     program. The conferees will not approve any movement of funds 
     to compensate for Russian nonperformance until a report is 
     provided to the Committees on Appropriations of the House and 
     Senate detailing the reasons for accepting or rejecting 
     alternative financial arrangements, including government to 
     government transfers, U.S. government to foreign contractor 
     arrangements, and U.S. contractor to foreign contractor 
     arrangements. The conferees expect to receive the report 
     within 60 days of enactment of this Act.


                  SCIENCE, AERONAUTICS AND TECHNOLOGY

       Appropriates $5,653,900,000 for science, aeronautics and 
     technology. The House had proposed $5,541,600,000 in this 
     account. The Senate had proposed two new accounts, science 
     and technology, and aeronautics, space transportation, and 
     technology, with a total of $5,562,400,000. The amount 
     provided is $196,500,000 above the budget request for 
     science, aeronautics and technology. The amount provided 
     consists of:
       $2,119,200,000 for space science, an increase of 
     $60,800,000 to the budget request.
       $263,500,000 for life and microgravity sciences, an 
     increase of $21,500,000 to the budget request.
       $1,413,800,000 for earth sciences, an increase of 
     $41,800,000 to the budget request.
       $1,338,900,000 for aeronautics and space transportation, an 
     increase of $33,900,000 to the budget request.
       $380,000,000 for mission support, no change from the budget 
     request.
       $138,500,000 for academic programs, an increase of 
     $38,500,000 to the budget request.
       Specific program adjustments are outlined below.


                             Space Science

       The conferees agree to the following changes to the budget 
     request:
       1. A general reduction of $21,200,000.
       2. An increase of $20,000,000 for the Mars 2001 program.
       3. An increase of $10,500,000 for Cross Enterprise Advance 
     Technology Development.
       4. An increase of $12,000,000 for Next Generation Space 
     Telescope.
       5. An increase of $11,000,000 for Sun-Earth connecting 
     advanced technology development to provide full funding for 
     Solar-B, continue microsatellite technology, and support 
     launch of solar stereo by 2002.
       6. An increase of $1,000,000 for an astronomical satellite 
     telescope operated at Western Kentucky University.
       7. An increase of $10,000,000 for Space Solar Power.
       8. An increase of $1,000,000 for the Near Earth Asteroid 
     Tracking program.

[[Page H9435]]

       9. An increase of $2,000,000 for a Science Center at 
     Glendale Community College.
       10. An increase of $2,500,000 for the Bishop Museum/Mauna 
     Kea Astronomy Education Center.
       11. An increase of $2,000,000 for the Chabot Observatory 
     and Science Center, Oakland, CA.
       12. An increase of $2,000,000 for a center on life in 
     extreme thermal environments at Montana State University in 
     Bozeman.
       13. An increase of $2,000,000 for Montana State University 
     in Bozeman to carry out research into advanced hardware and 
     software technologies for development of advanced 
     optoelectronic materials.
       14. An increase of $2,000,000 for an atmospheric research 
     small expendable deployed phase-B study.
       15. An increase of $4,000,000 for the University of Alabama 
     in Huntsville on behalf of the Center for Space Science and 
     Technology Alliance to establish the National Center for 
     Space Science and Technology adjacent to existing optics and 
     material university research laboratories in Huntsville, 
     Alabama.


                     life and microgravity sciences

       The conferees agree to the following changes to the budget 
     request:
       1. An increase of $15,000,000 for a shuttle mission which 
     accommodates research payloads. The conferees, remain 
     concerned about the lack of shuttle-based science missions in 
     fiscal year 1999. Additional research missions during space 
     station assembly are critical for providing scientists the 
     opportunity to develop research capabilities needed for 
     optimal utilization of the International Space Station. 
     Therefore, the conferees have provided $15,000,000 for such a 
     mission. NASA is directed to submit, as part of its operating 
     plan, a schedule for accomplishing this mission in fiscal 
     year 1999.
       2. An increase of $6,500,000 for space radiation research.


                             earth sciences

       The conferees agree to the following changes to the budget 
     request.
       1. A general reduction of $11,200,000.
       2. An increase of $25,000,000 to support EOS AM-1 launch 
     requirement, including interoperability of the EOS ground 
     systems.
       3. An increase of $10,000,000 for a remote sensing project 
     at Mississippi State University.
       4. An increase of $3,500,000 for the NASA International 
     Earth Observing System Natural Resource Training Center at 
     the University of Montana, Missoula.
       5. An increase of $2,000,000 for Environmental Computer 
     Center at Oregon State University.
       6. An increase of $2,000,000 for an institute for research 
     in commercial remote sensing applications at the University 
     of Missouri-Columbia.
       7. An increase of $1,000,000 for the Pipelines project at 
     Iowa State University/Southern University-Baton Rouge.
       8. An increase of $1,000,000 for the consortium for the 
     application of space data to education (CASDE).
       9. An increase of $5,500,000 for biodiversity-related 
     science programs at the American Museum of Natural History.
       10. An increase of $3,000,000 for the Regional Application 
     Center in Cayuga County, New York.


                  aeronautics and space transportation

       The conferees agree to the following changes to the budget 
     request.
       1. A general reduction of $13,850,000.
       2. An increase of $6,000,000 for studies of liquid flyback 
     booster systems.
       3. An increase of $4,000,000 for studies of a fifth stage 
     solid rocket booster system.
       4. An increase of $20,000,000 for NASA participation in the 
     Air Force Military Space Plane project.
       5. An increase of $6,000,000 for hybrid propulsion testing.
       6. An increase of $5,000,000 for the six NASA Regional 
     Technology Transfer Centers for programs to link women and 
     minority owned businesses and businesses from distressed 
     communities.
       7. An increase of $2,000,000 for the Midwest Technology 
     Transfer Center for the Garrett Morgan initiative throughout 
     Ohio and the Great Lakes region.
       8. An increase of $1,500,000 for MSE-Technology 
     Applications, Western Environmental Technology Office.
       9. An increase of $3,000,000 for a small business incubator 
     program for two new incubators, at least one of which is to 
     be located in Florida.
       10. An increase of $250,000 for the Institute for Software 
     Research (ISR) in Fairmont, West Virginia which will support 
     a collaborative research effort between ISR and NASA Dryden 
     to ensure cost effectiveness and safety for NASA programs 
     through basic research.


                         mission communications

       The conferees have provided $380,000,000 for Mission 
     Communications, the same as the budget request and the Senate 
     level and a reduction of $5,000,000 from the House proposed 
     funding level.


                           academic programs

        The conferees have agreed to the following changes to the 
     budget request.
       1. An increase of $5,600,000 for the National Space Grant 
     College and Fellowship Program.
       2. An increase of $5,400,000 for the NASA EPSCoR program. 
     The increase results in a total funding level of $9,600,000 
     in fiscal year 1999. The conferees expect the program to be 
     operated out of NASA headquarters and to permit each awardee 
     to pursue research in any or all of the four NASA strategic 
     enterprises. Finally, the conferees expect NASA to report to 
     the Committees on Appropriations by March 1, 1999 on how it 
     intends to aggressively expand future appropriations for this 
     program so as to help diversify the university base which 
     NASA research activities support.
       3. An increase of $3,500,000 for academic and 
     infrastructure needs at the University of Redlands.
       4. An increase of $1,000,000 for a residential aerospace 
     education center at NASA Glenn Research Center.
       5. An increase of $2,000,000 for a center for advanced 
     information technology at the University of Maryland, College 
     Park.
       6. An increase of $11,600,000 for Historically Black 
     Colleges and Universities. Of this amount, $10,000,000 is to 
     be applied to the SEMMA program as specified in House Report 
     105-610, and $1,600,000 is for a grant to Morgan State 
     University for capital renovations and environmental 
     remediation at the University's multipurpose facility to 
     facilitate its effective use for the conduct of math and 
     science education workshops to at-risk student in middle and 
     high school.
       7. An increase of $9,400,000 for the Partnership Awards 
     program.


                            MISSION SUPPORT

       Appropriates $2,511,100,000 for mission support instead of 
     $2,458,600,000 as proposed by the House and $2,491,600,000 as 
     proposed by the Senate. The amount provided includes 
     $2,000,000 for settlement of claims associated with the 
     Integrated Test Facility at the Dryden Flight Research 
     Center, and $1,500,000 for completion of facilities at the 
     Stennis Space Center. The amount provided also includes an 
     increase of $31,000,000, derived from the human space flight 
     account, to cover emergent requirements related to lower than 
     anticipated personnel retirements/buyouts, increased costs 
     associated with retirement system changes, government-wide 
     pay rate changes, and higher requirements for travel funding. 
     The conferees hereby increase NASA's travel limitation by 
     $1,400,000.
       The conferees continue to believe that the Administrator 
     should work closely with the City of Downey, California 
     regarding the disposition and excessing of Parcels 1 and 2 of 
     the NASA Industrial Plant, Downey, to the City. It is the 
     agreement of the conferees that this property be conveyed 
     to the City for economic/industrial development in an 
     expeditious manner. The conferees direct the Administrator 
     to submit a report by February 1, 1999, outlining a plan 
     for transfer of Parcels 1 and 2 to the City of Downey. The 
     report should identify any potential obstacles to timely 
     transfer, including environmental considerations, 
     proposals for overcoming those obstacles, and a timetable 
     by which orderly transfer could be effected.
       The conferees continue to prohibit the use of funds 
     appropriated or otherwise made available to the National 
     Aeronautics and Space Administration by this Act, or any 
     other Act enacted before the date of enactment of this Act, 
     by the Administrator of NASA to relocate aircraft of the 
     National Aeronautics and Space Administration based east of 
     the Mississippi River to the Dryden Flight Research Center in 
     California.


                      OFFICE OF INSPECTOR GENERAL

       Appropriates $20,000,000 for the Office of Inspector 
     General as proposed by the Senate, instead of $19,000,000 as 
     proposed by the House.

                  National Credit Union Administration


                       CENTRAL LIQUIDITY FACILITY

       Appropriates $2,000,000 for the National Credit Union 
     Administration for the Community Development Revolving Loan 
     Program for credit unions as authorized by Public Law 103-
     325, as proposed by the House instead of $1,000,000 as 
     proposed by the Senate.

                      National Science Foundation


                    RESEARCH AND RELATED ACTIVITIES

       Appropriates $2,770,000,000 for research and related 
     activities instead of $2,815,000,000 as proposed by the House 
     and $2,725,000,000 as proposed by the Senate. Bill language 
     is included which provides a limitation of $257,460,000 for 
     Polar research and operations support. The conferees have 
     also included bill language which prohibits the expenditure 
     of funds after September 30, 1998 for activities associated 
     with the administration of the Internet.
       Specific bill language which provided $50,000,000 for a 
     comprehensive research initiative on plant genomes for 
     economically significant crops as proposed by the Senate has 
     not been included, however, the conferees have included 
     $50,000,000 for such an initiative within the overall 
     research program funded through this account. This amount 
     represents an increase of $10,000,000 above the budget 
     request.
       The conferees note that the amount provided the research 
     and related activities account represents an increase of 
     nearly $225,000,000, or eight percent, over the comparable 
     fiscal year 1998 level. The Foundation is expected to spread 
     this increase across all research directorates in a 
     proportional manner consistent with the budget proposal. 
     Within this framework, the Foundation is expected to make 
     every effort to maximize resources for the Ocean, Earth and 
     Atmospheric Sciences programs. The conferees also note that 
     the GLOBE program has been provided up to $2,000,000.

[[Page H9436]]

       For the U.S. Arctic Research Program, the conferees have 
     provided up to $22,000,000, an increase of up to $12,500,000 
     above the budget request. These additional funds are intended 
     to support ongoing and planned high priority research in 
     the Arctic region, including appropriate logistic needs. 
     Prior to the obligation of these additional resources, the 
     conferees expect the Foundation to provide a detailed 
     spending plan on the use of these funds. Such plan should 
     be submitted as part of the fiscal year 1999 operating 
     plan.
       The conferees have not included provisions as contained in 
     the Senate report which created three new research centers 
     for applied molecular biology and which provided funds to 
     establish three new centers under the KDI program. The 
     conferees believe that support for doctoral I and doctoral II 
     institutions (as classified by the Carnegie Foundation) is 
     critical if the nation is to fully develop its human 
     resources with respect to science and engineering research. 
     The conferees recognize that NSF support for these 
     institutions currently exceeds $150,000,000 or about eight 
     percent of the total NSF research budget. Nevertheless, the 
     conferees expect the NSF to take all appropriate steps to 
     enhance the resources available for doctoral I and II 
     institutions, including taking steps to ensure that all 
     directorates below the NSF-wide average increase grants for 
     these institutions to achieve no less than this eight percent 
     level. Moreover, the conferees direct the Foundation to 
     review the need for the establishment of new centers to meet 
     the purposes as proposed by the Senate, and review the 
     desirability and feasibility of establishing a new and 
     separate pool of resources to benefit doctoral I and II 
     institutions. The conferees expect these reviews to be 
     completed and submitted to the Committees on Appropriations 
     no later than April 1, 1999.
       The conferees believe that the ``Grand Challenges'' 
     identified in the National Research Council's recent report, 
     ``Opportunities in Ocean Science,'' contains valuable 
     perspectives on the benefit derived by broad coordinated 
     research investigations. The NSF director shall communicate 
     the findings of the report, and counsel with The National 
     Ocean Leadership Council and the Office of Management and 
     Budget, to define ocean science initiatives that will help 
     realize the economic and environmental benefits described in 
     the report.
       Within amounts provided in this account, $1,500,000 is for 
     continued operation of the RaDiUs database program. The 
     conferees note that this database may represent a useful tool 
     in the analysis of all research and development expenditures 
     throughout the Federal government, and request the Foundation 
     to report by May 1, 1999 on its assessment of the value and 
     usefulness of this program. The amount provided is in 
     addition to other amounts provided to the Foundation for CTI 
     services.


                        major research equipment

       Appropriates $90,000,000 for major research equipment as 
     proposed by the House instead of $94,000,000 as proposed by 
     the Senate. Included within this amount is $9,000,000 for the 
     Millimeter Array, $22,000,000 for the Large Hadron Collider, 
     $20,000,000 for Polar support aircraft upgrades, and 
     $39,000,000 for continued maintenance and construction of new 
     facilities in Antarctica.


                     education and human resources

       Appropriates $662,000,000 for education and human resources 
     instead of $642,500,000 as proposed by the House and 
     $683,000,000 as proposed by the Senate.
       The conferees have included bill language renaming the 
     Alliances for Minority Participation (AMP) Program after 
     retiring Congressman Louis Stokes. The purpose of the AMP 
     Program is to build partnerships among different kinds of 
     institutions of higher education for the express purpose of 
     attracting and retaining minority students in academic 
     programs that lead to degrees in science and engineering. 
     Congressman Stokes has been equally committed to building 
     partnerships and alliances throughout his distinguished 
     career. It is therefore fitting that this program which 
     embodies these important principles be redesignated the Louis 
     Stokes Alliances for Minority Participation Program.
       Within the amount provided, $46,000,000 is for the Informal 
     Education Program, and an increase of $10,000,000 above the 
     budget request is provided for the EPSCoR program.
       The conferees have provided $13,500,000 through the 
     education and human resources account for education reform 
     initiatives targeted to underrepresented populations served 
     through the nation's historically black colleges and 
     universities (HBCUs). Of these amounts, $7,500,000 shall be 
     allocated for graduate level activities, and $6,000,000 for 
     undergraduate activities under the UPUR program established 
     in House Report 105-297. The undergraduate funds are to be 
     augmented with an additional $2,000,000 from the research and 
     related activities account for a total UPUR program level for 
     fiscal year 1999 of $8,000,000.
       For fiscal year 1998, $6,000,000 was provided for this 
     program by the NSF instead of $12,000,000 as intended by the 
     conferees. As a result, fewer institutions were given the 
     opportunity to compete for available resources. It is the 
     intent of the conferees that all eligible institutions, 
     including those which were granted awards in fiscal year 
     1998, be given equal opportunity to compete for funds 
     provided for fiscal year 1999. It is also the intent of the 
     conferees that awards be of sufficient size so as to meet the 
     needs of the competing institutions. However, it is not the 
     intent of the conferees that NSF establish either a minimum 
     or a maximum award size in the determination of grant 
     recipients. Rather, each application should be judged on its 
     merits without regard to its proposed cost. Finally, the 
     Foundation is urged to indicate in its fiscal year 2000 
     budget submission how it intends to sustain the UPUR 
     initiative at appropriate funding levels.


                         salaries and expenses

       Appropriates $144,000,000 for salaries and expenses as 
     proposed by the House instead of $136,950,000 as proposed by 
     the Senate.


                      office of inspector general

       Appropriates $5,200,000 for the Office of Inspector General 
     as proposed by the House and the Senate.

                 Neighborhood Reinvestment Corporation


          payment to the neighborhood reinvestment corporation

       Appropriates $90,000,000 for the Neighborhood Reinvestment 
     Corporation as proposed by the House instead of $60,000,000 
     as proposed by the Senate. Language is included which 
     provides $25,000,000 for a pilot homeownership initiative, as 
     proposed by the House.

                        Selective Service System


                         salaries and expenses

       Appropriates $24,176,000 for salaries and expenses as 
     proposed by the House, instead of $24,940,000 as proposed by 
     the Senate.

                      TITLE IV--GENERAL PROVISIONS

       Restores language proposed by the House and stricken by the 
     Senate permitting EPA, NSF, and NASA funds to be used for an 
     endowment for the United States/Mexico Foundation for 
     Science, amended to make technical modifications to the 
     language.
       Retains language proposed by the Senate limiting the use of 
     funds appropriated to the Department of the Housing and Urban 
     Development.
       Deletes language proposed by the House and stricken by the 
     Senate establishing new loan limits for Federal Housing 
     Administration mortgages, providing additional appropriations 
     of $10,000,000 for VA's medical and prosthetic research 
     account and $70,000,000 for the National Science Foundation's 
     research and related activities account, and defining the 
     term ``area.'' The Senate proposed language establishing new 
     loan limits for Federal Housing Administration mortgages 
     under HUD's administrative provisions. New FHA loan limits 
     and revised definitions are addressed under HUD's 
     administrative provisions section, and the appropriations for 
     the VA and NSF accounts are addressed under those 
     appropriating paragraphs.
       Inserts and modifies language proposed by the House, 
     directing the Consumer Product Safety Commission to contract 
     with the National Academy of Sciences for a study of flame 
     retardant chemicals under consideration for use in 
     upholstered furniture. The study is to be completed prior to 
     promulgation of a notice of proposed rulemaking or final 
     rulemaking.
       Deletes language proposed by the House and stricken by the 
     Senate reducing the amount of medical care funds with delayed 
     availability. The total amount of funds with delayed 
     availability is addressed under the medical care account.
       Deletes language proposed by the House and stricken by the 
     Senate regarding child sleepwear flammability standards, and 
     inserts new language directing the Consumer Product Safety 
     Commission to address sleepwear standards.
       Deletes language proposed by the House and stricken by the 
     Senate reducing funds for non-overhead administrative 
     expenses of the Federal Housing Administration by a total of 
     $303,999,998 and increasing funds for VA's medical care 
     account by the same amount. All funds for these activities 
     are addressed under the FHA and VA's medical care accounts.
       Deletes language proposed by the House and stricken by the 
     Senate prohibiting the use of FEMA funds to permit the use of 
     seismic hazard mitigation program funds to relocate a 
     hospital.
       Restores language proposed by the House and stricken by the 
     Senate prohibiting the use of funds in this Act for research 
     on reducing methane emissions from livestock.
       Restores language proposed by the House and stricken by the 
     Senate prohibiting funds in this Act from being used to carry 
     out Executive Order 13083 concerning federalism.
       Deletes language proposed by the House and stricken by the 
     Senate reducing funds for HUD's housing opportunities for 
     persons with AIDS (HOPWA) account by $21,000,000 and 
     increasing funds for VA's grants for construction of state 
     extended care facilities account by the same amount. Funding 
     for these activities is addressed under HUD's HOPWA and VA's 
     grants for construction of state extended care facilities 
     accounts.
       Deletes language proposed by the House and stricken by the 
     Senate restricting the use of funds in this Act for 
     implementation of section 12B.2(b) of the Administrative Code 
     of San Francisco.
       Deletes language proposed by the Senate placing certain 
     conditions on entities that receive grants providing 
     emergency shelter for homeless individuals.
       Inserts language proposed by the Senate modifying the 
     National Fallen Firefighters Foundation Act to eliminate the 
     cap on staffing, amended to make technical changes.

[[Page H9437]]

       Inserts language proposed by the Senate prohibiting 
     individuals convicted of methamphetamine manufacture from 
     receiving public housing assistance.
       Deletes language proposed by the Senate regarding maximum 
     travel distance for veterans to health care facilities.
       Deletes language proposed by the Senate regarding detailed 
     justifications for salary and expenses activities of the 
     agencies in the bill. While the committee of conference has 
     deleted the bill language, it remains concerned with the lack 
     of detail contained in the budget justifications submitted by 
     some of the agencies in the bill. As such, all of the 
     departments and agencies are directed to provide detailed 
     justifications for all salary and expenses activities, 
     including personnel compensation and benefits, consulting 
     costs, professional services or technical service contracts 
     regardless of the dollar amount, contracting out costs, 
     travel and other standard object classifications for all 
     headquarters offices, regional offices, or field 
     installations and laboratories, including the number of full-
     time equivalents per office, and the personnel compensation, 
     benefits and travel cost for each Secretary, Assistant 
     Secretary, Administrator, or other major operating office.
       Inserts language proposed by the Senate allowing the Office 
     of Science and Technology Policy to contract with the 
     National Academy of Sciences for a study to develop methods 
     for evaluating federally funded research and development 
     programs.
       Inserts language proposed by the Senate which provides 
     indemnification and cross-waivers of liability with regard to 
     the X-33 and X-34 flight test programs.
       Inserts language proposed by the Senate providing land 
     allotments to Alaska native Vietnam-era veterans, amended to 
     reduce the eligibility period to three years, decrease the 
     amount of lands subject to allotment, and provide the 
     Secretary of the Interior with discretion regarding which 
     lands are subject to allotment, among other changes.
       Inserts new language directing the National Aeronautics and 
     Space Administration to report on alternative methods of 
     contracting with Russian entities.
       Inserts new language renaming NASA's Lewis Research Center 
     in Cleveland, Ohio the John H. Glenn Research Center at Lewis 
     Field, in honor of retiring U.S. Senator John H. Glenn.
       Inserts new language waiving the statutory waiting period 
     prior to adoption of new accounting standards for NASA.

              TITLE VI--SINGLE FAMILY PROPERTY DISPOSITION

       Inserts language providing HUD with additional flexibility 
     to choose the most cost-effective methods of paying insurance 
     claims and disposing of acquired notes or homes under FHA 
     single family programs. Specifically, the provision:
       (1) reorganizes the current section 204(a) of the National 
     Housing Act and eliminates obsolete or redundant provisions;
       (2) provides a new claims payment procedure that permits 
     HUD to pay a claim upon assignment of the mortgage rather 
     than upon conveyance of the property;
       (3) authorizes HUD to take assignment of the notes and 
     transfer them to private parties for servicing, foreclosure 
     avoidance, foreclosure, property management, and asset 
     disposition; and,
       (4) provides HUD with authority, similar to the FHA 
     multifamily disposition program, that allows FHA to be an 
     equity participant in private entities.
       Additionally, the provision allows a structured financing 
     for asset disposition in which FHA retains an equity 
     interest, thereby increasing the value of the asset over 
     simple asset sales. It eliminates the precise statutory 
     formula for determining insurance benefits due a mortgagee by 
     allowing HUD to adjust the additions and deductions 
     prospectively through administrative action, to reflect new 
     information, changing conditions, and state law requirements.
       The conferees wish to impress upon HUD the importance of an 
     aggressive and effective loss mitigation program. Such a 
     program could keep families in their homes longer and would, 
     most certainly, decrease losses to the FHA insurance fund. 
     Currently, HUD's mortgage servicers have no affirmative duty 
     to undertake loss mitigation activities. Therefore, the 
     conference agreement has included language requiring loss 
     mitigation activities upon default of a mortgage. Failure by 
     a mortgagee to engage in loss mitigation activities could 
     result in a penalty of three times the amount of any 
     insurance benefits claimed by the mortgagee. The conferees 
     urge HUD, in conjunction with the lending community, to 
     develop a comprehensive loss mitigation program and to 
     propose to the Congress any statutory changes necessary to 
     implement such a program.
       Finally, the provision substitutes a requirement of 
     disclosure of information regarding pre-foreclosure sales for 
     the counseling currently required before use of pre-
     foreclosure sales and eliminates a requirement excluding the 
     use of loss mitigation tools by enabling mortgagees to make 
     better use of recasting and forbearance as part of loss 
     mitigation. Inserts language requiring HUD to treat certain 
     FHA single family assets in certain distressed neighborhoods 
     differently than those in non-revitalization areas in order 
     to make the areas sustainable and to diminish the number of 
     properties sold to speculators. The provision is designed to 
     stabilize the neighborhood by encouraging homeownership of 
     good, decent, and structurally sound homes, and replaces the 
     current ``right of first refusal'' and discount system.
       HUD is required, in conjunction with local stakeholders, to 
     establish revitalization areas. These areas are determined on 
     the basis of whether they have a high proportion of low 
     income households, a high number of troubled assets, or a low 
     rate of homeownership.
       Additionally, the legislation provides for the 
     establishment of smaller asset control areas within the 
     larger revitalization areas. In those targeted areas, HUD and 
     local partners shall implement an agreement to increase the 
     level of repair and the level of owner occupant purchasers in 
     those specially targeted areas. To encourage these 
     agreements, HUD is authorized to offer pricing discounts that 
     are based on an appropriate appraisal. HUD is obligated to 
     offer, and the local partners are obligated to take, all FHA 
     single family assets that are or that become available in 
     these areas.
       Once the revitalization and asset control areas are 
     determined, assets offered for sale must be repaired so 
     purchasers are not saddled with high repair costs. The 
     conferees believe that adequate rehabilitation and 
     renovations must be made to these homes to make them 
     attractive to buyers as well as to increase the stability of 
     the neighborhood. Therefore, rehabilitation standards should 
     include whether the homes are in good, safe and habitable 
     condition, whether major systems are dependable and in good 
     repair, and whether the properties are marketable to owner 
     occupants given the standards and preferences of the local 
     community. Though preferred purchasers may incorporate higher 
     rehabilitation standards, non-preferred purchasers must meet 
     at least minimum property standards, as determined by HUD.
       The conferees believe that increasing homeownership in 
     these areas is particularly important if they are to become 
     sustainable. Therefore, assets (within the control of the 
     purchasers) in these areas must be sold to owner occupants in 
     a proportion that matches, if not exceeds, the proportion of 
     owner occupants in the metropolitan area. Though HUD is given 
     the authority, in certain circumstances, to waive this 
     provision, any deviations are expected to be rare and 
     merit consultation with local units of government and 
     other involved parties. The conferees do not intend for 
     HUD to waive the homeownership requirement for solely 
     economic consideration. Downward deviations should be only 
     for the purpose of strengthening the revitalization of the 
     areas in which they may occur.
       The conferees direct HUD to report to Congress annually on 
     the number and characteristics of areas designated, or 
     rejected, as revitalization and asset control areas. The 
     report should include the number of eligible assets within 
     each area and the basis for any rejection of designation.


                   conference total--with comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1999 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1998 amount, the 1999 
     budget estimates, and the House and Senate bills for 1999 
     follow:

New budget (obligational) authority, fiscal year 1998...$88,392,163,000
Budget estimates of new (obligational) authority, fiscal 93,688,871,105
House bill, fiscal year 1999.............................94,375,545,030
Senate bill, fiscal year 1999............................93,331,942,030
Conference agreement, fiscal year 1999...................93,390,780,030
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1998..+4,998,617,030
  Budget estimates of new (obligational) authority, fiscal -298,091,075
  House bill, fiscal year 1999.............................-984,765,000
  Senate bill, fiscal year 1999.............................+58,838.000

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

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

[[Page H9438]]



                          ____________________