[Congressional Record Volume 145, Number 30 (Thursday, February 25, 1999)]
[Senate]
[Pages S2028-S2029]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 485. A bill to provide for the disposition of unoccupied and 
substandard multifamily housing projects owned by the Secretary of 
Housing and Urban Development; to the Committee on Banking, Housing, 
and Urban Affairs.


                          urban homestead act

  Mr. McCAIN. Mr. President, today I introduce the Urban Homestead act, 
a bill designed to reform the way in which the Department of Housing 
and Urban Development (HUD) disposes of unoccupied and substandard 
housing stock.
  In summary, the Urban Homestead Act would require HUD, every six 
months, to publish in the National Register a complete listing of all 
single, and multi-family housing stock that has been in the 
Department's inventory for at least six months. Further, HUD is 
required to publish a complete listing of all substandard housing stock 
in the same manner. Locally based community development corporations 
would then be allowed to petition HUD for possession of these 
properties. HUD would be required to transfer the properties to the CDC 
free of cost.
  There are few more obnoxious examples of government inefficiency and 
ineffectiveness than that of HUD's inability to address the housing 
needs of low-income families. HUD is notorious for its bloated 
bureaucracy and malfeasance in administering our nations public housing 
assistance programs. Nowhere is this ineptitude more glaringly obvious 
than in HUD's disposition of housing stock.
  In our nation's inner cities, there are thousands of quiet heroes, 
struggling against and conquering near-insurmountable obstacles in 
efforts to revitalize their communities. They are winning the battle 
one house, one street, one neighborhood at a time.
  These organizations are as unique as the communities and 
neighborhoods in which they work their magic. It is their ability to 
adapt to the local demands of their neighborhoods which is the key to 
their success. However, one challenge which is the same, regardless of 
what community they are operating in, is the vacant house. These 
abandoned houses play host to all types of criminal activity. They are 
crack houses, centers of gang activities, and prostitution. You name 
it. The abandoned house has become a symbol of urban blight.
  I ask my colleagues, who do you think is to blame for this outrage? A 
slum lord, or an absentee owner, perhaps a greedy land speculator? In 
some instances, this may be the case. But a principal culprit 
responsible for kneecapping the efforts of these neighborhood heroes is 
non-other-than the Department of Housing and Urban Development. Many of 
these homes are the product of FHA foreclosures. They are the product 
of lax lending habits and pathetic administration of the HUD property 
disposition program.
  Well, Mr. President, it is my intention to put HUD out of the 
slumlord business. The legislation I introduce today sends a very 
simple message to HUD. They have six months to get a property on the 
market and sold. If they fail to get the job done, they're going to 
have to turn the property over to a CDC and they'll get the job done 
for them.
  By channeling these properties into the hands of CDCs providing home 
ownership opportunities to low-income families, we will be 
accomplishing several important objectives. First, we will be placing a 
valuable resource into the hands of not-for-profits who may otherwise 
lack the capital resources to purchase the housing stock. Secondly, we 
get the property back in circulation. In doing so, it ceases to be a 
center for criminal activity and a symbol of blight. Finally, and most 
important, these organizations will use this housing stock to do what 
HUD has failed to accomplish. They will provide low-income families a 
piece of the American dream--a chance at home ownership.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 485

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Urban Homestead Act of 
     1999''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Community development corporation.--The term 
     ``community development corporation'' means a nonprofit 
     organization whose primary purpose is to promote community 
     development by providing housing opportunities to low-income 
     families.
       (2) Low-income families.--The term ``low-income families'' 
     has the same meaning as in section 3(b) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)).
       (3) Multifamily housing project.--The term ``multifamily 
     housing project'' has the same meaning as in section 203 of 
     the Housing and Community Development Amendments of 1978 (12 
     U.S.C. 1701z-11).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (5) Severe physical problems.--A dwelling unit shall be 
     considered to have ``severe physical problems'' if such 
     unit--
       (A) lacks hot or cold piped water, a flush toilet, or both 
     a bathtub and a shower in the unit, for the exclusive use of 
     that unit;
       (B) on not less than 3 separate occasions, during the 
     preceding winter months was uncomfortably cold for a period 
     of more than 6 consecutive hours due to a malfunction of the 
     heating system for the unit;
       (C) has no functioning electrical service, exposed wiring, 
     any room in which there is not a functioning electrical 
     outlet, or has experienced not less than 3 blown fuses or 
     tripped circuit breakers during the preceding 90-day period;
       (D) is accessible through a public hallway in which there 
     are no working light fixtures, loose or missing steps or 
     railings, and no elevator; or
       (E) has severe maintenance problems, including water leaks 
     involving the roof, windows, doors, basement, or pipes or 
     plumbing fixtures, holes or open cracks in walls or ceilings, 
     severe paint peeling or broken plaster, and signs of rodent 
     infestation.
       (6) Single family residence.--The term ``single family 
     residence'' means a 1- to 4-family dwelling that is held by 
     the Secretary.
       (7) Substandard multifamily housing project.--A multifamily 
     housing project is ``substandard'' if not less than 25 
     percent of the dwelling units of the project have severe 
     physical problems.
       (8) Unit of general local government.--The term ``unit of 
     general local government'' has the same meaning as in section 
     102(a) of the Housing and Community Development Act of 1974 
     (42 U.S.C. 5302).
       (9) Unoccupied multifamily housing project.--The term 
     ``unoccupied multifamily housing project'' means a 
     multifamily housing project that the Secretary certifies in 
     writing is not inhabited.

     SEC. 3. DISPOSITION OF UNOCCUPIED AND SUBSTANDARD PUBLIC 
                   HOUSING.

       (a) Publication in Federal Register.--
       (1) In general.--Subject to paragraph (2), beginning 6 
     months after the date of enactment of this Act, and every 6 
     months thereafter, the Secretary shall publish in the Federal 
     Register a list of each unoccupied multifamily housing 
     project, substandard multifamily housing project, and other 
     residential property that is owned by the Secretary.
       (2) Exception for certain projects and properties.--
       (A) Projects.--A project described in paragraph (1) shall 
     not be included in a list published under paragraph (1) if 
     less than 6 months have elapsed since the later of--
       (i) the date on which the project was acquired by the 
     Secretary; or
       (ii) the date on which the project was determined to be 
     unoccupied or substandard.
       (B) Properties.--A property described in paragraph (1) 
     shall not be included in a list published under paragraph (1) 
     if less than 6 months have elapsed since the date on which 
     the property was acquired by the Secretary.
       (b) Transfer of Ownership to Community Development 
     Corporations.--Notwithstanding section 203 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1701z-11) 
     or any other provision of Federal law pertaining to the 
     disposition of property, upon the written request of a 
     community development corporation, the Secretary shall 
     transfer to the community development corporation ownership 
     of any unoccupied multifamily housing project, substandard 
     multifamily housing project, or other residential property 
     owned by the Secretary, if the project or property is--
       (1) located in the same unit of general local government as 
     the community development corporation; and
       (2) included in the most recent list published by the 
     Secretary under subsection (a).
       (c) Satisfaction of indebtedness.--Prior to any transfer of 
     ownership under subsection (b), the Secretary shall satisfy 
     any indebtedness incurred in connection with the project or 
     residence at issue, either by--
       (1) cancellation of the indebtedness; or
       (2) reimbursing the community development corporation to 
     which the project or residence is transferred for the amount 
     of the indebtedness.

[[Page S2029]]

     SEC. 4. EXEMPTION FROM PROPERTY DISPOSITION REQUIREMENTS.

       No provision of the Multifamily Housing Property 
     Disposition Reform Act of 1994, or any amendment made by that 
     Act, shall apply to the disposition of property under this 
     Act.

     SEC. 5. TENANT LEASES.

       This Act shall not affect the terms or the enforceability 
     of any contract or lease entered into before the date of 
     enactment of this Act.

     SEC. 6. PROCEDURES.

       Not later than 6 months after the date of enactment of this 
     Act, the Secretary shall establish, by rule, regulation, or 
     order, such procedures as may be necessary to carry out this 
     Act.
                                 ______