[Congressional Record Volume 146, Number 100 (Thursday, July 27, 2000)]
[Senate]
[Pages S7867-S7881]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD:
  S. 2968. A bill to empower communities and individuals by 
consolidating and reforming the programs of the Department of Housing 
and Urban Development; to the Committee on Banking, Housing, and Urban 
Affairs.


                    local housing opportunities act

  Mr. ALLARD. Mr. President, today I am introducing the ``Local Housing 
Opportunities Act'', legislation to empower communities and individuals 
by consolidating and reforming HUD programs. I ask unanimous consent 
that the following section-by-section description of the bill be 
printed in the Record and that the text of the bill be printed in the 
Record following the description.
  In 1994, there were 240 separate programs at the Department of 
Housing and Urban Development (HUD). By 1997, the number of programs 
had grown to 328. Many of these programs have never been authorized by 
Congress, and operate under questionable legal authority. While the 
number of HUD programs has grown, HUD's workforce has declined from 
12,000 employees in 1995 to 9,000 employees today. As a result, scarce 
resources are diverted away from core housing and enforcement programs, 
dramatically increasing the risks of mismanagement and fraud. HUD 
remains the only Cabinet level agency designated by the General 
Accounting Office (GAO) as ``High Risk''. In order to promote the 
interests of taxpayers and improve the delivery of services to 
beneficiaries, Congress should transfer more programs to

[[Page S7868]]

the States and localities and enact legislation to consolidate, 
terminate, and streamline HUD programs.

                     Section-by-Section Description

       I. Prohibition of Unauthorized Programs at the Department 
     of Housing and Urban Development--Prohibits HUD from carrying 
     out any program that is not explicitly authorized in statute 
     by the Congress. This provision takes effect one year after 
     the effective date to give the Congress sufficient time to 
     authorize those programs that it wishes to maintain. Within 
     60 days of the date of enactment the Department of Housing 
     and Urban Development shall provide a report detailing every 
     HUD program along with the statutory authorization for that 
     program. This report shall be provided annually to the Senate 
     Committee on Banking, Housing and Urban Affairs, the Senate 
     Subcommittee on Housing and Transportation, the House 
     Committee on Banking and Financial Services, and the House 
     Subcommittee on Housing and Community Opportunity.
       II. Elimination of Certain HUD Programs--Terminates certain 
     programs as recommended by the HUD Secretary in the ``HUD 
     2020 Program Repeal and Streamlining Act''. The Department 
     has determined that these programs are unnecessary, outdated, 
     or inactive.
       Community Investment Corporation Demonstration--never 
     funded, superseded by the Community Development Financial 
     Institutions program administered by the Department of the 
     Treasury.
       New Towns Demonstration Program for Emergency Relief of Los 
     Angeles--not funded since FY 1993.
       Solar Assistance Financing Entity--not funded in recent 
     years.
       Urban Development Action Grants--discontinued program, not 
     funded in recent years.
       Certain Special Purpose Grants--not funded since FY 1993 
     and FY 1995.
       Moderate Rehabilitation Assistance in Disasters--no 
     additional assistance for the Moderate Rehabilitation program 
     has been provided (other than for the homeless under the 
     McKinney Act) since FY 1989.
       Rent Supplement Program--not funded for many years.
       National Home Ownership Trust Demonstration--authority 
     expired at the end of FY 1994.
       Repeal of HOPE I, II, and III--all HOPE funds have been 
     awarded, no additional funding has been requested since FY 
     1995, and no future funding is anticipated.
       Energy Efficiency Demonstration Program, section 961 of 
     NAHA--never funded.
       Technical Assistance and Training for IHAs--no funds have 
     been provided for this program since FY 1994.
       Termination of the investor mortgages portion of the 
     Section 203(k) rehabilitation mortgage insurance program as 
     recommended by the HUD IG. Investor rehabilitation mortgages 
     constitute approximately 20% of the loans insured under this 
     program, and recent IG audits have found this portion of the 
     program to be particularly vulnerable to fraud and abuse by 
     investor-owners. The larger portion of the program for owner/
     occupants is retained.
       Certificate and Voucher Assistance for Rental 
     Rehabilitation Projects--rental rehabilitation program has 
     been repealed, section 289 of NAHA.
       Single Family Loan Insurance for Home Improvement Loans in 
     Urban Renewal Areas--unnecessary.
       Single Family and Multifamily Mortgage Insurance for 
     Miscellaneous Special Situations, section 223 (a)(1)-(6) and 
     (8)--obsolete.
       Single Family Mortgage Insurance for so-called ``Modified'' 
     Graduated Payment Mortgages, section 245 (b)--insurance 
     authority terminated in 1987 but provision never repealed.
       War Housing Insurance--authority for new insurance 
     terminated in 1954, but provision never repealed.
       Insurance for Investments (Yield Insurance)--program never 
     implemented, but authority and provision never repealed.
       National Defense Housing--authority for new insurance 
     terminated in 1954, but provision never repealed.
       Rural Homeless Housing Assistance--not funded since FY 
     1994, all HUD homeless assistance will be part of the 
     McKinney Homeless Assistance Performance Fund created under 
     this legislation.
       Innovative Homeless Initiatives Demonstration--not funded 
     since FY 1995, all HUD homeless assistance will be part of 
     the McKinney Homeless Assistance Performance Fund created 
     under this legislation.
       During the remainder of 2000, the Senate Housing and 
     Transportation Subcommittee will hold hearings on this 
     discussion draft. At that time the Subcommittee will solicit 
     the recommendations of the Department, the IG, the GAO, and 
     other organizations for other HUD programs that can be 
     streamlined or eliminated. This legislation also provides for 
     the creation of a ``HUD Consolidation Task Force'' which will 
     report to the Congress with recommendations on how to reduce 
     the number of programs at HUD through consolidation, 
     termination, or transfer to other levels of government.
       III. HUD Consolidation Task Force--Mandates the creation of 
     a task force that will focus exclusively on legislative and 
     regulatory options to reduce the number of HUD programs. The 
     task force will consist of three individuals: the Comptroller 
     General of the United States, the HUD Secretary, and the HUD 
     Inspector General. Within six months of the enactment of this 
     legislation, the task force will produce a report outlining 
     options to reduce the number of HUD programs through 
     consolidation, elimination, and transfer to other levels of 
     government. The report will be provided to the Senate and 
     House Housing Subcommittees as well as the Senate and House 
     Banking Committees.
       I. Community Development Block Grant Authorization (CDBG) 
     and Prohibition of Set-Asides and Earmarks--Restores local 
     control over the CDBG program by prohibiting Congressional 
     set-asides and earmarks not specifically authorized in 
     statute. The original intent of CDBG was that program dollars 
     would be allocated directly to cities and states according to 
     formula. In FY 1999 over 10 percent of the funds were 
     earmarked for specific projects (the earmarks have increased 
     steadily in recent years). CDBG was last authorized in 1994, 
     this legislation would authorize the program through FY 2005, 
     with an initial authorization of $4,850,000,000 in FY 2001.
       II. Community Notification of Opt-Outs--Requires that when 
     HUD receives notice of a Section 8 opt-out that it forward 
     that notice within 10 days to the top elected official for 
     the unit of local government where the property is located. 
     This supplements the requirement in Section 8 (c)(8)(A) of 
     the Housing Act of 1937 that HUD and tenants be notified one 
     year in advance if a Section 8 opt-out is anticipated.
       III. Urban Homestead Requirement--Directs that HUD-held 
     properties that have not been disposed of within six months 
     following acquisition by HUD or a determination that they are 
     substandard or unoccupied, shall be made available upon 
     written request for sale or donation to local governments or 
     Community Development Corporations (CDCs).
       IV. Permanent ``Moving To Work'' Authorization--Continues 
     the deregulation of Public Housing Authorities (PHAs) by 
     opening the ``Moving To Work'' program to all PHAs. This 
     program was authorized as a demonstration in the 1996 VA/HUD 
     Appropriation bill and granted up to 30 PHAs the option to 
     receive HUD funds as a block grant. The program provides 
     autonomy from HUD micro-management and the freedom to 
     innovate with reforms such as work requirements, time limits, 
     job training, and Home ownership assistance. The Secretary 
     shall approve an application under this program for all but 
     the lowest performing PHAs unless the Secretary makes a 
     written determination, within 60 days after receiving the 
     application, that the application fails to comply with the 
     statutory provisions authorizing the ``Moving to Work'' 
     program.
       Consolidate HUD Homeless Assistance Funds into the 
     ``McKinney Homeless Assistance Performance Fund''--Combines 
     HUD's McKinney programs (Supportive Housing Program, Shelter 
     Plus Care, Section 8 Moderate Rehabilitation for Single Room 
     Occupancy Dwellings, Safe Havens, Rural Homeless Housing 
     Assistance, and the Emergency Shelter Grants), into a single 
     McKinney Homeless Assistance Performance Fund ( and 
     authorizes funding through FY 2003, at an initial level of 
     $1,050,000,000 in FY 2001). Distributes funds according to 
     the CDBG block grant formula with 70 percent to units of 
     local government and 30 percent to states.
       Eligible units of local government include metropolitan 
     cities, urban counties, and consortia. The formula is to be 
     reviewed after one year with a statutory requirement that HUD 
     provide alternative formulas for the Congress to consider. 
     State funds are available for use in areas throughout the 
     entire state. Codifies and requires a Continuum of Care 
     system by grant recipients. The Continuum of Care submission 
     is linked with the Consolidated Plan. Every three dollars of 
     federal block grant money is to be matched with one dollar of 
     state or local money. Funds qualifying for the match are the 
     same as those currently permitted under the Emergency Shelter 
     Grants program, and would include salaries paid to staff, 
     volunteer labor, and the value of a lease on a building. 
     There is a five year transition period--state and local 
     governments would receive no less than 90 percent of prior 
     award amounts (average for FY 96-99) in the first year after 
     enactment, 85 percent in the second year after enactment, 80 
     percent in the third and fourth year after enactment, and 75 
     percent in the fifth year after enactment. Eligible projects 
     and activities include emergency assistance, safe haven 
     housing, transitional housing, permanent housing, supportive 
     services for persons with disabilities, single room occupancy 
     housing, prevention, outreach and assessment, acquisition and 
     rehabilitation of property, new construction, operating 
     costs, leasing, tenant assistance, supportive services, 
     administrative (generally limited to 10 percent of funds), 
     capacity building, targeting to subpopulations of persons 
     with disabilities. Performance measures and benchmarks are 
     included, along with periodic performance reports, reviews, 
     and audits.
       I. Mutual and Self-Help Housing Technical Assistance and 
     Training Grants Program--Reauthorizes technical assistance 
     grants to facilitate the construction of self-help housing in 
     rural areas. Program beneficiaries are required to contribute 
     a significant amount of sweat equity to the construction of 
     the homes that they will own. Authorizes funding of $40 
     million for FY 2001 and 2002, and $45 million for FY 2003-
     2005.
       II. Improve the Rural Housing Repair Loan Program for the 
     Elderly--Increases the amount for which a promissory note is 
     considered a sufficient security for housing repairs from 
     $2,500 to $7,500.

[[Page S7869]]

       III. Enhance Efficiency of Rural Housing Preservation 
     Grants--Eliminates the existing statutory requirement that 
     prohibits a State from obligating more than 50 percent of its 
     Housing Preservation Grants allocation to any one grantee. 
     Many states receive only a small amount from this formula 
     program. In many cases the money can only be most effectively 
     invested in one project.
       IV. Project Accounting Records and Practices--Requires 
     section 515 rural housing borrowers to maintain records in 
     accordance with GAAP (Generally Accepted Accounting 
     Principles).
       V. Operating Assistance for Migrant Farmworker Projects 
     Authority--Permits rural housing operating assistance 
     payments in migrant and seasonal farm labor housing 
     complexes.
       I. Authorization of Appropriations for Rental Vouchers for 
     Relocation of Witnesses and Victims of Crime--Authorizes 
     specific funding for vouchers for victims and witnesses of 
     crime. These vouchers were authorized in the Quality Housing 
     and Work Responsibility Act of 1998 (QHWRA). No funds have 
     yet been appropriated and HUD has yet to write regulations. 
     The current authorization directs the Secretary to 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 reported to an appropriate law enforcement 
     authority, and requires that PHAs notify tenants of the 
     availability of such funds. This legislation would authorize 
     a funding level in each of FY 2001-2005 of $25,000,000.
       II. Revise the HUD Lease Addendum--Prohibits the HUD lease 
     addendum from overriding local law. Participating housing 
     providers and residents sign a three-party lease along with 
     the public housing authority. The law requires the attachment 
     of a HUD Lease Addendum (HUD Form 52647.3) which overrides 
     some local market provisions and practices, holding the 
     voucher resident to a non-standard lease contract. The use of 
     federally promulgated forms that counter local practice 
     incurs additional training, legal and management costs. The 
     voucher lease addendum shall be nullified to the extent that 
     it conflicts with State or local law.
       III. Reduce the Burden of Housing Quality Standard 
     Inspections--Provides the option that Housing Quality 
     Standard inspections be conducted on a property basis rather 
     than a unit basis. Currently each individual unit that is 
     rented under the program must be inspected for compliance 
     with HUD's Housing Quality Standards. Individual inspections 
     are a time-consuming administrative headache for PHAs and 
     Section 8 landlords, result in slow unit turnover, and 
     significant lost revenue. This legislation provides the 
     Section 8 landlord with the option to have annual inspections 
     conducted on a property or building basis, rather than a unit 
     basis.
       IV. HUD Report to the Congress on Ways to Improve the 
     Voucher Program--Requires that the HUD Secretary solicit 
     comments and recommendations for improvement in the voucher 
     program through notice in the Federal Register. Six months 
     after enactment, the Secretary shall submit to the House and 
     Senate Housing Subcommittees and the House and Senate Banking 
     Committees a summary of the recommendations received by the 
     Secretary regarding suggestions for improvement in the 
     voucher program.
       I. Reauthorize the Self-Help Homeownership Opportunity 
     Program (SHOP)--Reauthorizes the SHOP program which provides 
     funding for land and infrastructure purchases to facilitate 
     self-help housing. Utilized by Habitat for Humanity and the 
     Housing Assistance Council. Reauthorize through FY 2005, 
     beginning with $25 million in FY 2001. Adds new language 
     allowing an additional year to use funds for local groups 
     building five or more homes (increase from two years to three 
     years), and also making it possible for local and national 
     non-profit organizations using SHOP funds to advance their 
     own money to purchase property, pending the environmental 
     review approvals, to be repaid from federal funds after the 
     environmental reviews have been approved.
       II. Capacity Building for Community Development and 
     Affordable Housing Program--Reauthorizes and increases grants 
     to non-profits to expand affordable housing capacity. 
     Presently authorized for The Enterprise Foundation, Local 
     Initiatives Support Corporation, Habitat for Humanity, 
     Youthbuild USA, and the National Community Development 
     Initiative. Expands access to this program to include the 
     ``National Association of Housing Partnerships'' and 
     authorizes a funding level of $40 million for each of FY 
     2001-2003. Amounts must be matched three to one from other 
     sources.
       III. Work Requirement for Public Housing Residents: 
     Coordinate Federal Housing Assistance with State Welfare 
     Reform Work Programs--Requires that able-bodied and non-
     elderly public housing residents be in compliance with the 
     work requirements of welfare reform in their state. Those 
     unable to comply would be provided the opportunity to engage 
     in community service or participate in an economic self-
     sufficiency program. There is substantial overlap in families 
     receiving welfare and those benefitting from assisted 
     housing. Among families with children, it is estimated that 
     72 percent of those who live in public housing receive some 
     type of welfare. These families are currently subject to 
     Welfare Reform work requirements and this provision simply 
     applies the requirement to the remaining able-bodied 
     recipients of federal housing assistance. Public housing was 
     originally conceived as temporary assistance for working low-
     income families to help them during times of financial 
     distress. Recent housing legislation has recognized this fact 
     by placing increasing emphasis on self-sufficiency. These 
     efforts should be coordinated with the self sufficiency 
     efforts of Welfare Reform. PHAs shall monitor compliance with 
     the state work requirement. There shall be an exception for 
     the elderly and disabled, and as with Welfare Reform, there 
     will be a broad definition of work including; employment, 
     community service, vocational and job training, work 
     associated with self help housing construction, refurbishing 
     publicly assisted housing, the provision of certain child 
     care services, and participation in education programs or 
     economic self-sufficiency programs. This work requirement 
     will replace the 8 hour per month ``Community Service'' 
     Requirement that exists in current law for residents of 
     public housing. Public Housing Authorities shall not be 
     prohibited by this legislation from implementing more 
     stringent work requirements and States electing the housing 
     assistance block grant would be excluded from this 
     requirement and be free to design their own self-sufficiency 
     requirements.
       IV. Flexible Use of CDBG Funds to Maintain Properties--
     Amends Section 105(a)(23) of the Housing and Community 
     Development Act, which currently authorizes use of CDBG 
     funding for activities necessary to make essential repairs 
     and payment of operating expenses needed to maintain the 
     habitability of housing units acquired through tax 
     foreclosure proceedings in order to prevent abandonment and 
     deterioration of such housing in primarily low- and moderate-
     income neighborhoods. This language is amended to permit the 
     use of CDBG funds for property upkeep in instances in which a 
     court has wrested effective control of a distressed 
     residential property from the owner and appointed a 
     responsible third party (often a non-profit organization or 
     other owner/manager of properties in the area) to operate the 
     property on an interim basis as administrator, although legal 
     title remains with the original owner.
       IV. Allows Vouchers in Grandfamily Housing Assisted with 
     HOME Dollars--Permits flexible use of Section 8 vouchers in 
     Grandfamily Housing assisted with HOME dollars. Current law 
     restricts the level of Section 8 assistance that may be used 
     in projects assisted with HOME funds. This legislation 
     creates an exception to the general rule for projects 
     designed to benefit Grandfamilies, by permitting the use of 
     Section 8 vouchers at the Fair Market Rent (FMR) level by 
     Grandparents choosing to live in low income housing projects 
     assisted with HOME dollars. This change is designed to assist 
     low-income, elderly residents and their grandchildren for 
     whom they provide full-time care and custody.
       V. Simplified FHA Downpayment Calculation.--Makes permanent 
     the temporary simplified FHA downpayment calculation provided 
     in section 203(b) of the National Housing Act. The current 
     downpayment calculation on FHA loans is needlessly complex. 
     Recent appropriations bills have included a simplified pilot 
     program that replaces the current multi-part formula with a 
     single calculation based solely on the appraised value of the 
     property. The simplified formula yields substantially the 
     same downpayment result as the multi-part formula.
       VI. Authorize the Use of Section 8 Funds for Downpayment 
     Assistance--Permits tenants to receive up to one year's worth 
     of Section 8 assistance in a lump sum to be used toward the 
     down payment on a home. This compliments innovative programs 
     that allow the use of Section 8 assistance for mortgage 
     payments.
       VII. Reauthorize the Neighborhood Reinvestment Corporation 
     through 2003--Reauthorizes the Neighborhood Reinvestment 
     Corporation, a congressionally chartered, public non-profit 
     corporation established in 1978 to revitalize declining 
     lower-income communities and provide affordable housing. 
     Funding is authorized at $90 million in FY 2001, and $95 
     million in each of FY 2002 and 2003.
       Provides States the option to receive certain federal 
     assisted housing funds (tenant assistance programs) in the 
     form of a block grant. Modeled on Welfare Reform, this would 
     give States the freedom to innovate absent HUD micro-
     management. States accepted into the program would sign a 
     five year performance agreement with the federal 
     government that details how the State intends to combine 
     and use housing assistance funds from programs included in 
     the performance agreement to advance low income housing 
     priorities, improve the quality of low income housing, 
     reduce homelessness, and encourage economic opportunity 
     and self-sufficiency. States electing the block grant 
     would determine how funds are distributed to state 
     agencies, Public Housing Authorities, project owners, and 
     tenants. During the first year of the performance 
     agreement States would receive the highest of the prior 
     three years funding for each program included in the 
     performance agreement. There would then be an annual 
     inflation adjustment in each future year until Congress 
     (following consultation with HUD) enacts a formula that 
     reflects the relative low-income/affordable housing needs 
     of each State. A performance agreement submitted to the 
     Secretary would have to be approved by the Secretary 
     unless the Secretary makes a written determination, within 
     60 days after

[[Page S7870]]

     receiving the performance agreement, that the performance 
     agreement fails to comply with provisions of the Act. 
     Eligible programs for inclusion in the block grant shall 
     include: the voucher program for rental assistance under 
     section 8(o) of the United States Housing Act of 1937; the 
     programs for project-based assistance under section 8 of 
     the United States Housing Act of 1937; the program for 
     housing for the elderly under section 202 of the Housing 
     Act of 1959; the program for housing for persons with 
     disabilities under section 811 of the Cranston-Gonzales 
     National Affordable Housing Act. The distribution of block 
     granted funds within the State from programs included in 
     the performance agreement shall be determined by the 
     Legislature and the Governor of the State. In a State in 
     which the constitution or state law designates another 
     individual, entity, or agency to be responsible for 
     housing, such other individual, entity, or agency shall 
     work in consultation with the Governor and Legislature to 
     determine the local distribution of funds. Existing 
     contracts involving federal housing dollars shall be 
     honored by the States until their expiration. States shall 
     at such point handle the renewal of all contracts. A State 
     may not use more than 3 percent of the total amount of 
     funds allocated to such State under the programs included 
     in the performance agreement for administrative purposes. 
     Performance criteria shall include at a minimum a measure 
     of; the improvement in housing conditions, the number of 
     units that pass housing quality inspections, the number of 
     residents that find employment and move to self-
     sufficiency, the level of crime against residents, the 
     level of homelessness, the level of poverty, the cost of 
     assisted housing units provided, the level of assistance 
     provided to people with disabilities and to the elderly, 
     success in maintaining the stock of affordable housing, 
     and increasing homeownership. If at the end of the 5-year 
     term of the performance agreement a State has failed to 
     meet at least 80 percent of the performance goals 
     submitted in the performance agreement, the Secretary 
     shall terminate the performance agreement and the State or 
     community shall be required to comply with the program 
     requirement, in effect at the time of termination, of each 
     program included in the performance agreement. To reward 
     States that make significant progress in meeting 
     performance goals, the HUD Secretary shall annually set 
     aside sufficient funds to grant a reward of up to 5 
     percent of the funds allocated to participating States.

            Sense of the Congress Supporting Tax Incentives


  Sense of the Congress That the Low Income Housing Tax Credit State 
    Ceilings and the Private Activity Bond Caps Should Be Increased

       It is the sense of the Congress that the Low Income Housing 
     Tax Credit and Private Activity Bonds have been valuable 
     resources in the effort to increase affordable housing.
       It is the sense of the Congress that the Low Income Housing 
     Tax Credit and Private Activity Bonds effectively utilize the 
     ability of the states to deliver resources to the areas of 
     greatest need within their jurisdictions.
       It is the sense of the Congress that the value of the Low 
     Income Housing Tax Credit and the Private Activity Bonds have 
     been eroded by inflation.
       Therefore, be it resolved, That the Low Income Housing Tax 
     Credit State Ceilings should be increased by forty percent in 
     the year 2000, and that the level of the state ceilings 
     should be adjusted annually to account for increases in the 
     cost-of-living, and
       That the Private Activity Bond Caps should be increased by 
     fifty percent in the year 2000, and that the value of the 
     caps should be adjusted annually to account for increases in 
     the cost-of-living.
       I. Tighten Language on Lobbying Restrictions on HUD 
     employees--Prohibits employees at HUD from lobbying, or 
     attempting to influence legislation before the Congress. This 
     language is based on current restrictions on Department of 
     Interior employees. No federally appropriated funds may be 
     used for any activity that in any way tends to promote public 
     support or opposition to legislation, a nomination, or a 
     treaty. The President, the Vice President and Senate 
     confirmed agency officials are exempt from these provisions. 
     However, these individuals may not delegate their authority 
     to any other employees of the Department. Provides civil 
     money penalties against non-exempt employees who 
     independently violate the statute, and against exempt 
     employees who have delegated their lobbying authority.
       II. The Department of Housing and Urban Development shall 
     promulgate regulations under the provisions of this Act 
     within 6 months of the enactment of this Act.
                                  ____


                                S. 2968

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Local 
     Housing Opportunities Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective date.

                     TITLE I--PROGRAM CONSOLIDATION

Sec. 101. Prohibition of unauthorized programs at the Department.
Sec. 102. Elimination and consolidation of HUD programs.
Sec. 103. HUD consolidation task force.

                    TITLE II--COMMUNITY EMPOWERMENT

Sec. 201. Reauthorization of community development block grants and 
              prohibition of set-asides.
Sec. 202. Community notification of opt-outs.
Sec. 203. Urban homestead requirement.
Sec. 204. Authorization of Moving to Work program.

                 TITLE III--HOMELESS ASSISTANCE REFORM

Sec. 301. Consolidation of HUD homeless assistance funds.
Sec. 302. Establishment of the McKinney Homeless Assistance Performance 
              Fund.
Sec. 303. Repeal and savings provisions.
Sec. 304. Implementation.

                        TITLE IV--RURAL HOUSING

Sec. 401. Mutual and self-help housing technical assistance and 
              training grants authorization.
Sec. 402. Enhancement of the Rural Housing Repair loan program for the 
              elderly.
Sec. 403. Enhancement of efficiency of rural housing preservation 
              grants.
Sec. 404. Project accounting records and practices.
Sec. 405. Operating assistance for migrant farm worker projects.

                        TITLE V--VOUCHER REFORM

Sec. 501. Authorization of appropriations for rental vouchers for 
              relocation of witnesses and victims of crime.
Sec. 502. Revisions to the lease addendum.
Sec. 503. Report regarding housing voucher program.
Sec. 504. Conducting quality standard inspections on a property basis 
              rather than a unit basis.

                    TITLE VI--PROGRAM MODERNIZATION

Sec. 601. Assistance for self-help housing providers.
Sec. 602. Local capacity building for community development and 
              affordable housing.
Sec. 603. Work requirement for public housing residents: coordination 
              of Federal housing assistance with State welfare reform 
              work programs.
Sec. 604. Simplified FHA downpayment calculation.
Sec. 605. Flexible use of CDBG funds.
Sec. 606. Use of section 8 assistance in grandfamily housing assisted 
              with HOME funds.
Sec. 607. Section 8 homeownership option downpayment assistance.
Sec. 608. Reauthorization of Neighborhood Reinvestment Corporation.

                  TITLE VII--STATE HOUSING BLOCK GRANT

Sec. 701. State control of public and assisted housing funds.

                 TITLE VIII--PRIVATE SECTOR INCENTIVES

Sec. 801. Sense of Congress regarding low-income housing tax credit 
              State ceilings and private activity bond caps.

                         TITLE IX--ENFORCEMENT

Sec. 901. Prohibition on use of appropriated funds for lobbying by the 
              department.
Sec. 902. Regulations.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``Committees'' means--
       (A) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Subcommittee on Housing and Transportation 
     of that Committee; and
       (B) the Committee on Banking and Financial Services of the 
     House of Representatives and the Subcommittee on Housing and 
     Community Opportunity of that Committee;
       (2) the term ``Department'' means the Department of Housing 
     and Urban Development; and
       (3) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development.

     SEC. 3. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act or an 
     amendment made by this Act, this Act and the amendments made 
     by this Act shall take effect on October 1, 2001.

                     TITLE I--PROGRAM CONSOLIDATION

     SEC. 101. PROHIBITION OF UNAUTHORIZED PROGRAMS AT THE 
                   DEPARTMENT.

       (a) In General.--Beginning on the effective date of this 
     Act, the Secretary may not carry out any program that is not 
     explicitly authorized by Federal law.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committees a report, which shall include a detailed 
     description of each program carried out by the Department, 
     and the statutory authorization for that program or, if no 
     explicit authorization exists, an explanation of the legal 
     authority under which the program is being carried out.

     SEC. 102. ELIMINATION AND CONSOLIDATION OF HUD PROGRAMS.

       (a) Community Investment Corporation Demonstration.--
     Section 853 of the Housing and Community Development Act of 
     1992 (42 U.S.C. 5305 note) is repealed.
       (b) New Towns Demonstration Program for Emergency Relief of 
     Los Angeles.--

[[Page S7871]]

     Title XI of the Housing and Community Development Act of 1992 
     (42 U.S.C. 5318 note) is repealed.
       (c) Solar Assistance Financing Entity.--Section 912 of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 
     5511a) is repealed.
       (d) Urban Development Action Grants.--
       (1) UDAG repeal.--Section 119 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5318) is repealed.
       (2) Conforming amendments.--Title I of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is 
     amended--
       (A) in section 104(d)(1), by striking ``or 119'' and ``or 
     section 119'';
       (B) in section 104(d)(2), by striking ``or 119'';
       (C) in section 104(d)(2)(C), by striking ``or 119'';
       (D) in section 107(e)(1), by striking ``, section 
     106(a)(1), or section 119'' and inserting ``or section 
     106(a)(1),'';
       (E) in section 107(e)(2), by striking ``section 106(a)(1), 
     or section 119'' and inserting ``or section 106(a)(1)''; and
       (F) in section 113(a)--
       (i) in paragraph (2), by adding ``and'' at the end;
       (ii) by striking paragraph (3); and
       (iii) by redesignating paragraph (4) as paragraph (3).
       (e) Special Purpose Grants.--Section 107 of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5307) is 
     amended--
       (1) in subsection (a)(1)--
       (A) by striking subparagraphs (C), (D), and (G);
       (B) by redesignating subparagraphs (E), (F), (H), and (I) 
     as subparagraphs (C), (D), (E), and (F), respectively; and
       (C) in subparagraph (D) (as redesignated) by striking 
     ``(6)'' and inserting ``(5)''; and
       (2) in subsection (b)--
       (A) in paragraph (4), by adding ``and'' at the end;
       (B) by striking paragraphs (5) and (7);
       (C) by redesignating paragraph (6) as paragraph (5); and
       (D) in paragraph (5) (as redesignated) by striking ``; 
     and'' and inserting a period.
       (f) Moderate Rehabilitation Assistance in Disasters.--
     Section 932 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437c note) is repealed.
       (g) Rent Supplement Program.--
       (1) Repeal.--Section 101 of the Housing and Urban 
     Development Act of 1965 (12 U.S.C. 1701s) is repealed.
       (2) References.--Any reference in any provision of law to 
     section 101 of the Housing and Urban Development Act of 1965 
     (12 U.S.C. 1701s) shall be construed to refer to that section 
     as in existence immediately before the effective date of this 
     Act.
       (h) National Homeownership Trust Demonstration.--Subtitle A 
     of title III of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12851 et seq.) is repealed.
       (i) Hope Programs.--
       (1) Repeal of hope i program.--
       (A) Hope i program repeal.--Title III of the United States 
     Housing Act of 1937 (42 U.S.C. 1437aaa et seq.) is repealed.
       (B) Conforming amendments.--
       (i) United states housing act of 1937.--Section 8(b) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(b)) is 
     amended--

       (I) in paragraph (1), by striking ``(1) In general.--''; 
     and
       (II) by striking paragraph (2).

       (ii) Housing and community development act of 1974.--
     Section 213(e) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 1439(e)) is amended by striking ``(b)(1)'' 
     and inserting ``(b)''.
       (2) Repeal of hope ii and iii programs.--
       (A) Hope ii.--Subtitle B of title IV of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12871 et 
     seq.) is repealed.
       (B) Hope iii.--
       (i) In general.--Subtitle C of title IV of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12891 et 
     seq.) is repealed.
       (ii) Closeout authority.--Notwithstanding the repeal made 
     by clause (i), the Secretary may continue to exercise the 
     authority under sections 445(b), 445(c)(3), 445(c)(4), and 
     446(4) of title IV of the Cranston-Gonzalez National 
     Affordable Housing Act (as amended by subparagraph (C) of 
     this paragraph) after the effective date of this Act, to the 
     extent necessary to terminate the programs under subtitle C 
     of title IV of that Act.
       (C) Amendment of hope iii program authority for closeout.--
       (i) Sale and resale proceeds.--Section 445 of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 12895) is 
     amended--

       (I) in subsection (b), by striking ``costs'' and all that 
     follows through ``expenses,'';
       (II) in subsection (c)(3), by striking ``the Secretary 
     or''; and
       (III) in subsection (c)(4)--

       (aa) in the first sentence, by striking ``Fifty percent of 
     any'' and inserting ``Any''; and
       (bb) by striking the second and third sentences.
       (ii) Eligibility of private property.--Section 446(4) of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12896(4)) is amended to read as follows:
       ``(4) The term `eligible property' means a single family 
     property containing not more than 4 units (excluding public 
     housing under the United States Housing Act of 1937, or 
     Indian housing under the Native American Housing Assistance 
     and Self-Determination Act of 1996).''.
       (3) Conforming amendments.--
       (A) In general.--Title IV of the Cranston-Gonzalez National 
     Affordable Housing Act is amended--
       (i) by striking sections 401 and 402 (42 U.S.C. 1437aaa 
     note; 12870);
       (ii) in section 454(b)(2) (42 U.S.C. 12899c(b)(2)), by 
     striking ``to be used for the purposes of providing 
     homeownership under subtitle B and subtitle C of this 
     title''; and
       (iii) in section 455 (42 U.S.C. 12899d), by striking 
     subsection (d) and redesignating subsections (e) through (g) 
     as subsections (d) through (f), respectively.
       (B) Department of housing and urban development act.--
     Section 7(r)(2) of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535(r)(2)) is amended--
       (i) in subparagraph (A), by striking ``titles I and II'' 
     and inserting ``title I''; and
       (ii) in subparagraph (K), by striking ``titles II, III, and 
     IV'' and inserting ``title II''.
       (j) Energy Efficiency Demonstration.--Section 961 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12712 note) is repealed.
       (k) Technical Assistance and Training for IHAs.--Section 
     917 of the Housing and Community Development Act of 1992 
     (Public Law 102-550; 106 Stat. 3882) is repealed.
       (l) Elimination of Investor-Owners Under the Section 203(k) 
     Program.--Section 203(g)(2) of the National Housing Act (12 
     U.S.C. 1709(g)(2)) is amended--
       (1) in subparagraph (D), by adding ``or'' at the end;
       (2) by striking subparagraph (E); and
       (3) by redesignating subparagraph (F) as subparagraph (E).
       (m) Certificate and Voucher Assistance for Rental 
     Rehabilitation Projects.--Section 8(u) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(u)) is repealed.
       (n) Mortgage and Loan Insurance Programs.--
       (1) In general.--Sections 220(h), 245(b), and titles VI, 
     VII, and IX of the National Housing Act are repealed.
       (2) Additional amendments.--The National Housing Act is 
     amended--
       (A) in section 1 (12 U.S.C. 1702), by striking ``VI, VII, 
     VIII, IX'' each place it appears and inserting ``VIII,'';
       (B) in section 203(k)(5) (12 U.S.C. 1709(k)(5)), by 
     striking the second sentence; and
       (C) in section 223 (12 U.S.C. 1715n)--
       (i) by striking subsection (a) and inserting the following:
       ``(a) In General.--Notwithstanding any of the provisions of 
     this Act and without regard to limitations upon eligibility 
     contained in any section or title of this Act, other than the 
     limitation in section 203(g), the Secretary is authorized 
     upon application by the mortgagee, to insure or make 
     commitments to insure under any section or title of this Act 
     any mortgage--
       ``(1) given to refinance an existing mortgage insured under 
     this Act, except that the principal amount of any such 
     refinancing mortgage shall not exceed the original principal 
     amount or the unexpired term of such existing mortgage and 
     shall bear interest at such rate as may be agreed upon by the 
     mortgagor and the mortgagee, except that--
       ``(A) the principal amount of any such refinancing mortgage 
     may equal the outstanding balance of an existing mortgage 
     insured pursuant to section 245, if the amount of the monthly 
     payment due under the refinancing mortgage is less than that 
     due under the existing mortgage for the month in which the 
     refinancing mortgage is executed;
       ``(B) a mortgagee may not require a minimum principal 
     amount to be outstanding on the loan secured by the existing 
     mortgage;
       ``(C) in any case involving the refinancing of a loan in 
     which the Secretary determines that the insurance of a 
     mortgage for an additional term will inure to the benefits of 
     the applicable insurance fund, taking into consideration the 
     outstanding insurance liability under the existing insured 
     mortgage, such refinancing mortgage may have a term not more 
     than twelve years in excess of the unexpired term of such 
     existing insured mortgage; and
       ``(D) any multifamily mortgage that is refinanced under 
     this paragraph shall be documented through amendments to the 
     existing insurance contract and shall not be structured 
     through the provisions of a new insurance contract; or
       ``(2) executed in connection with the sale by the 
     Government of any housing acquired pursuant to section 1013 
     of the Demonstration Cities and Metropolitan Development Act 
     of 1966.''; and
       (ii) in subsection (d)(5), by striking ``A loan'' and all 
     that follows through ``and loans'' and inserting ``Loans''.
       (o) Transition Rules.--
       (1) Effect on contracts.--The repeal of program authorities 
     under this section shall not affect any legally binding 
     obligation entered into before the effective date of this 
     Act.
       (2) Savings provisions.--
       (A) In general.--Except as otherwise provided in this Act, 
     any funds or obligation authorized by, activity conducted 
     under, or mortgage or loan insured under, a provision of law 
     repealed by this section shall continue to be governed by the 
     provision as in existence immediately before the effective 
     date of this Act.

[[Page S7872]]

       (B) Insurance.--The insurance authorities repealed by 
     subsection (n)(1) and the provisions of the National Housing 
     Act applicable to a mortgage or loan insured under any of 
     such authorities, as such authorities and provisions existed 
     immediately before repeal, shall continue to apply to a 
     mortgage or loan insured under any of such authorities prior 
     to repeal, and a mortgage or loan for which, prior to the 
     date of repeal, the Secretary has issued a firm commitment 
     for insurance under any of such authorities or a Direct 
     Endorsement underwriter has approved, in a form acceptable to 
     the Secretary, a mortgage or loan for insurance under such 
     authorities.

     SEC. 103. HUD CONSOLIDATION TASK FORCE.

       (a) In General.--There is established a task force to be 
     known as the ``HUD Consolidation Task Force'', which shall--
       (1) consist of the Comptroller General of the United 
     States, the Secretary, and the Inspector General of the 
     Department; and
       (2) conduct an analysis of legislative and regulatory 
     options to reduce the number of programs carried out by the 
     Department through consolidation, elimination, and transfer 
     to other departments and agencies of the Federal government 
     and to State and local governments.
       (b) Report.--Not later than 6 months after the effective 
     date of this Act, the HUD Consolidation Task Force shall 
     submit to the Committees a report, which shall include the 
     results of the analysis under subsection (a)(2).

                    TITLE II--COMMUNITY EMPOWERMENT

     SEC. 201. REAUTHORIZATION OF COMMUNITY DEVELOPMENT BLOCK 
                   GRANTS AND PROHIBITION OF SET-ASIDES.

       (a) Reauthorization.--The last sentence of section 103 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5303) is amended to read as follows: ``For purposes of 
     assistance under section 106, there is authorized to be 
     appropriated $4,850,000,000 for fiscal year 2001 and such 
     sums as may be necessary for each of fiscal years 2002 
     through 2005.''.
       (b) Prohibition of Set-Asides.--Section 103 of the Housing 
     and Community Development Act of 1974 (42 U.S.C. 5303) is 
     amended--
       (1) by inserting ``(a) In General.--'' after ``Sec. 103.''; 
     and
       (2) by adding at the end the following:
       ``(b) Prohibition of Set-Asides.--Except as provided in 
     paragraphs (1) and (2) of section 106(a) and in section 107, 
     amounts appropriated pursuant to subsection (a) of this 
     section or otherwise to carry out this title (other than 
     section 108) shall be used only for formula-based grants 
     allocated pursuant to section 106 and may not be otherwise 
     used unless the provision of law providing for such other use 
     specifically refers to this subsection and specifically 
     states that such provision modifies or supersedes the 
     provisions of this subsection.
       ``(c) Point of Order.--Notwithstanding any other provision 
     of law, it shall not be in order in the Senate to consider 
     any measure or amendment that provides for a set-aside 
     prohibited under subsection (b). The point of order provided 
     by this subsection may only be waived or suspended by a vote 
     of three-fifths of the members of the Senate duly chosen and 
     sworn.''.

     SEC. 202. COMMUNITY NOTIFICATION OF OPT-OUTS.

       Section 8(c)(8)(A) of the Housing Act of 1937 (42 U.S.C. 
     1437f(c)(8)(A)) is amended by adding at the end the 
     following: ``Upon receipt of a written notice under this 
     subparagraph, the Secretary shall forward a copy of the 
     notice to the top elected official for the unit of local 
     government in which the property is located.''.

     SEC. 203. URBAN HOMESTEAD REQUIREMENT.

       (a) Disposition of Unoccupied and Substandard Public 
     Housing.--
       (1) Publication in federal register.--
       (A) In general.--Subject to subparagraph (B), beginning 6 
     months after the effective date 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.
       (B) Exception for certain projects and properties.--
       (i) Projects.--A project described in subparagraph (A) 
     shall not be included in a list published under subparagraph 
     (A) 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.

       (ii) Properties.--A property described in subparagraph (A) 
     shall not be included in a list published under subparagraph 
     (A) if less than 6 months have elapsed since the date on 
     which the property was acquired by the Secretary.
       (b) Transfer of Unoccupied and Substandard HUD-Held Housing 
     to Local Governments and Community Development 
     Corporations.--Section 204 of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is 
     amended--
       (1) by striking ``Flexible Authority.--'' and inserting the 
     following: ``(a) Flexible Authority for Disposition of 
     Multifamily Projects.--''; and
       (2) by adding at the end the following:
       ``(b) Transfer of Unoccupied and Substandard Housing to 
     Local Governments and Community Development Corporations.--
       ``(1) Definitions.--In this subsection:
       ``(A) Community development corporation.--The term 
     `community development corporation' means a nonprofit 
     organization whose primary purpose is to promote community 
     development by providing housing opportunities for low-income 
     families.
       ``(B) Cost recovery basis.--The term `cost recovery basis' 
     means, with respect to any sale of a residential property by 
     the Secretary, that the purchase price paid by the purchaser 
     is equal to or greater than or equal to the costs incurred by 
     the Secretary in connection with such property during the 
     period beginning on the date on which the Secretary acquires 
     title to the property and ending on the date on which the 
     sale is consummated.
       ``(C) Multifamily housing project.--The term `multifamily 
     housing project' has the meaning given the term in section 
     203 of the Housing and Community Development Amendments of 
     1978.
       ``(D) Qualified hud property.--The term `qualified HUD 
     property' means any property that is owned by the Secretary 
     and is--
       ``(i) an unoccupied multifamily housing project;
       ``(ii) a substandard multifamily housing project; or
       ``(iii) an unoccupied single family property that--

       ``(I) has been determined by the Secretary not to be an 
     eligible property under section 204(h) of the National 
     Housing Act (12 U.S.C. 1710(h)); or
       ``(II) is an eligible property under such section 204(h), 
     but--

       ``(aa) is not subject to a specific sale agreement under 
     such section; and
       ``(bb) has been determined by the Secretary to be 
     inappropriate for continued inclusion in the program under 
     such section 204(h) pursuant to paragraph (10) of such 
     section.
       ``(E) Residential property.--The term `residential 
     property' means a property that is a multifamily housing 
     project or a single family property.
       ``(F) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(G) Severe physical problems.--The term `severe physical 
     problems' means, with respect to a dwelling unit, that the 
     unit--
       ``(i) 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;
       ``(ii) 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;
       ``(iii) has no functioning electrical service, exposed 
     wiring, any room in which there is not a functioning 
     electrical outlet, or has experienced 3 or more blown fuses 
     or tripped circuit breakers during the preceding 90-day 
     period;
       ``(iv) is accessible through a public hallway in which 
     there are no working light fixtures, loose or missing steps 
     or railings, and no elevator; or
       ``(v) 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.
       ``(H) Single family property.--The term `single family 
     property' means a 1- to 4-family residence.
       ``(I) Substandard.--The term `substandard' means, with 
     respect to a multifamily housing project, that 25 percent or 
     more of the dwelling units in the project have severe 
     physical problems.
       ``(J) Unit of general local government.--The term `unit of 
     general local government' has the meaning given that term in 
     section 102(a) of the Housing and Community Development Act 
     of 1974.
       ``(K) Unoccupied.--The term `unoccupied' means, with 
     respect to a residential property, that the unit of general 
     local government having jurisdiction over the area in which 
     the project is located has certified in writing that the 
     property is not inhabited.
       ``(2) Transfer authority.--Notwithstanding the authority 
     under subsection (a) and the last sentence of section 204(g) 
     of the National Housing Act (12 U.S.C. 1710(g)), the 
     Secretary of Housing and Urban Development shall transfer 
     ownership of any qualified HUD property included in the most 
     recent list published by the Secretary under subsection (a) 
     to a unit of general local government having jurisdiction for 
     the area in which the property is located or to a community 
     development corporation which operates within such a unit of 
     general local government in accordance with this subsection, 
     but only to the extent that units of general local government 
     and community development corporations submit a written 
     request for the transfer.
       ``(3) Timing.--The Secretary shall establish procedures 
     that provide for--
       ``(A) time deadlines for transfers under this subsection;
       ``(B) notification to units of general local government and 
     community development corporations of qualified HUD 
     properties in their jurisdictions;
       ``(C) such units and corporations to express interest in 
     the transfer under this subsection of such properties;
       ``(D) a right of first refusal for transfer of qualified 
     HUD properties to such units and corporations, under which 
     the Secretary shall accept an offer to purchase such a 
     property made by such unit or corporation during a period 
     established by the Secretary,

[[Page S7873]]

     but in the case of an offer made by a community development 
     corporation only if the offer provides for purchase on a cost 
     recovery basis; and
       ``(E) a written explanation, to any unit of general local 
     government or community development corporation making an 
     offer to purchase a qualified HUD property under this 
     subsection that is not accepted, of the reason that such 
     offer was not acceptable.
       ``(4) Other disposition.--With respect to any qualified HUD 
     property, if the Secretary does not receive an acceptable 
     offer to purchase the property pursuant to the procedure 
     established under paragraph (3), the Secretary shall dispose 
     of the property to the unit of general local government in 
     which property is located or to community development 
     corporations located in such unit of general local government 
     on a negotiated, competitive bid, or other basis, on such 
     terms as the Secretary deems appropriate.
       ``(5) Satisfaction of indebtedness.--Before transferring 
     ownership of any qualified HUD property pursuant to this 
     subsection, the Secretary shall satisfy any indebtedness 
     incurred in connection with the property to be transferred, 
     by canceling the indebtedness.
       ``(6) Determination of status of properties.--To ensure 
     compliance with the requirements of this subsection, the 
     Secretary shall take the following actions:
       ``(A) Upon enactment.--Not later than 60 days after the 
     effective date of the Local Housing Opportunities Act, the 
     Secretary shall assess each residential property owned by the 
     Secretary to determine whether the property is a qualified 
     HUD property.
       ``(B) Upon acquisition.--Upon acquiring any residential 
     property, the Secretary shall promptly determine whether the 
     property is a qualified HUD property.
       ``(C) Updates.--The Secretary shall periodically reassess 
     the residential properties owned by the Secretary to 
     determine whether any such properties have become qualified 
     HUD properties.
       ``(7) Tenant leases.--This subsection shall not affect the 
     terms or the enforceability of any contract or lease entered 
     into with respect to any residential property before the date 
     that such property becomes a qualified HUD property.
       ``(8) Use of property.--Property transferred under this 
     subsection shall be used only for appropriate neighborhood 
     revitalization efforts, including homeownership, rental 
     units, commercial space, and parks, consistent with local 
     zoning regulations, local building codes, and subdivision 
     regulations and restrictions of record.
       ``(9) Inapplicability to properties made available for 
     homeless.--Notwithstanding any other provision of this 
     subsection, this subsection shall not apply to any property 
     that the Secretary determines is to be made available for use 
     by the homeless pursuant to subpart E of part 291 of title 
     24, Code of Federal Regulations (as in effect on January 1, 
     2000), during the period that the properties are so 
     available.
       ``(10) Protection of existing contracts.--This subsection 
     may not be construed to alter, affect, or annul any legally 
     binding obligations entered into with respect to a qualified 
     HUD property before the property becomes a qualified HUD 
     property.''.
       (c) 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 section and the amendments made 
     by this section.

     SEC. 204. AUTHORIZATION OF MOVING TO WORK PROGRAM.

       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) is amended--
       (1) in the section heading, by striking ``demonstration'' 
     and inserting ``program'';
       (2) in subsection (a), by striking ``this demonstration'' 
     and inserting ``this section'';
       (3) in subsection (b)--
       (A) in the first sentence--
       (i) by striking ``demonstration''; and
       (ii) by striking ``up to 30'';
       (B) in the third sentence, by striking ``Under the 
     demonstration, notwithstanding'' and inserting 
     ``Notwithstanding''; and
       (C) by striking the second sentence;
       (4) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``demonstration'' and inserting ``program under this 
     section'';
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``demonstration'';
       (ii) in subparagraph (B), by striking ``demonstration'' and 
     inserting ``section''; and
       (iii) in subparagraph (E), by striking ``demonstration 
     program'' and inserting ``program under this section''; and
       (C) in paragraph (4), by striking ``demonstration'' and 
     inserting ``program under this section'';
       (5) by striking subsection (d) and inserting the following:
       ``(d) Approval of Applications.--Not later than 60 days 
     after receiving an application submitted in accordance with 
     subsection (c), the Secretary shall approve the application, 
     unless the Secretary makes a written determination that the 
     applicant has a most recent score under the public housing 
     management assessment program under section 6(j)(2) of the 
     United States Housing Act of 1937 (or any successor 
     assessment program for public housing agencies), that is 
     among the lowest 20 percent of the scores of all public 
     housing agencies.'';
       (6) in subsection (e)--
       (A) in paragraph (1), by striking ``this demonstration'' 
     and inserting ``the program under this section''; and
       (B) in paragraph (2), by striking ``demonstration'' and 
     inserting ``program under this section'';
       (7) in subsection (f), by striking ``demonstration under 
     this part'' and inserting ``program under this section'';
       (8) in subsection (g)--
       (A) in paragraph (1), by striking ``this demonstration'' 
     and inserting ``the program under this section''; and
       (B) in paragraph (2), by striking ``demonstration'' and 
     inserting ``program under this section'';
       (9) in subsection (h), by striking ``demonstration'' each 
     place it appears and inserting ``program under this 
     section'';
       (10) in subsection (i), by striking ``demonstration'' and 
     inserting ``program under this section''; and
       (11) in subsection (j), by striking ``demonstration'' and 
     inserting ``program''.

                 TITLE III--HOMELESS ASSISTANCE REFORM

     SEC. 301. CONSOLIDATION OF HUD HOMELESS ASSISTANCE FUNDS.

       The purposes of this title are to facilitate the effective 
     and efficient management of the homeless assistance programs 
     of the Department by--
       (1) reducing and preventing homelessness by supporting the 
     creation and maintenance of community-based, comprehensive 
     systems dedicated to returning families and individuals to 
     self-sufficiency;
       (2) reorganizing the homeless housing assistance 
     authorities under the Stewart B. McKinney Homeless Assistance 
     Act into a McKinney Homeless Assistance Performance Fund;
       (3) assisting States and local governments, in partnership 
     with private nonprofit service providers, to use homeless 
     funding more efficiently and effectively;
       (4) simplifying and making more flexible the provision of 
     Federal homeless assistance;
       (5) maximizing the ability of a community to implement a 
     coordinated, comprehensive system for providing assistance to 
     homeless families and individuals;
       (6) making more efficient and equitable the manner in which 
     homeless assistance is distributed;
       (7) reducing the Federal role in local decisionmaking for 
     homeless assistance programs;
       (8) reducing the costs to governmental jurisdictions and 
     private nonprofit organizations in applying for and using 
     assistance; and
       (9) advancing the goal of meeting the needs of the homeless 
     population through mainstream programs and establishing 
     continuum of care systems necessary to achieve that goal.

     SEC. 302. ESTABLISHMENT OF THE MCKINNEY HOMELESS ASSISTANCE 
                   PERFORMANCE FUND.

       Title IV of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11361 et seq.) is amended to read as follows:

       ``TITLE IV--McKINNEY HOMELESS ASSISTANCE PERFORMANCE FUND

     ``SEC. 401. DEFINITIONS.

       ``In this title:
       ``(1) Allocation unit of general local government.--
       ``(A) In general.--The term `allocation unit of general 
     local government' means a metropolitan city or an urban 
     county.
       ``(B) Consortia.--The term `allocation unit of general 
     local government' may include a consortium of geographically 
     contiguous metropolitan cities and urban counties, if the 
     Secretary determines that the consortium--
       ``(i) has sufficient authority and administrative 
     capability to carry out the purposes of this title on behalf 
     of its member jurisdictions; and
       ``(ii) will, according to a written certification by the 
     State (or States, if the consortium includes jurisdictions in 
     more than 1 State), direct its activities to the 
     implementation of a continuum of care system within the State 
     or States.
       ``(2) Applicant.--The term `applicant' means a grantee 
     submitting an application under section 403.
       ``(3) Consolidated plan.--The term `consolidated plan' 
     means the single comprehensive plan that the Secretary 
     prescribes for submission by jurisdictions (which shall be 
     coordinated and consistent with any 5-year comprehensive plan 
     of the public housing agency required under section 14(e) of 
     the United States Housing Act of 1937) that consolidates and 
     fulfills the requirements of--
       ``(A) the comprehensive housing affordability strategy 
     under title I of the Cranston-Gonzalez National Affordable 
     Housing Act;
       ``(B) the community development plan under section 104 of 
     the Housing and Community Development Act of 1974; and
       ``(C) the submission requirements for formula funding 
     under--
       ``(i) the Community Development Block Grant program 
     (authorized by title I of the Housing and Community 
     Development Act of 1974);
       ``(ii) the HOME program (authorized by title II of the 
     Cranston-Gonzalez National Affordable Housing Act);

[[Page S7874]]

       ``(iii) the McKinney Homeless Assistance Performance Fund 
     (authorized under this title); and
       ``(iv) the AIDS Housing Opportunity Act (authorized by 
     subtitle D of title VIII of the Cranston-Gonzalez National 
     Affordable Housing Act).
       ``(4) Continuum of care system.--The term `continuum of 
     care system' means a system developed by a State or local 
     homeless assistance board that includes--
       ``(A) a system of outreach and assessment, including drop-
     in centers, 24-hour hotlines, counselors, and other 
     activities designed to engage homeless individuals and 
     families, bring them into the continuum of care system, and 
     determine their individual housing and service needs;
       ``(B) emergency shelters with essential services to ensure 
     that homeless individuals and families receive shelter;
       ``(C) transitional housing with appropriate supportive 
     services to help ensure that homeless individuals and 
     families are prepared to make the transition to increased 
     responsibility and permanent housing;
       ``(D) permanent housing, or permanent supportive housing, 
     to help meet the long-term housing needs of homeless 
     individuals and families;
       ``(E) coordination between assistance provided under this 
     title and assistance provided under other Federal, State, and 
     local programs that may be used to assist homeless 
     individuals and families, including both targeted homeless 
     assistance programs and other programs administered by the 
     Departments of Veterans Affairs, Labor, Health and Human 
     Services, and Education; and
       ``(F) a system of referrals for subpopulations of the 
     homeless (such as homeless veterans, families with children, 
     battered spouses, persons with mental illness, persons who 
     have chronic problems with alcohol, drugs, or both, persons 
     with other chronic health problems, and persons who have 
     acquired immunodeficiency syndrome and related diseases) to 
     the appropriate agencies, programs, or services (including 
     health care, job training, and income support) necessary to 
     meet their needs.
       ``(5) Grantee.--The term `grantee' means--
       ``(A) an allocation unit of general local government or 
     insular area that administers a grant under section 
     408(b)(1); or
       ``(B) an allocation unit of general local government or 
     insular area that designates a public agency or a private 
     nonprofit organization (or a combination of such 
     organizations) to administer grant amounts under section 
     408(b)(2).
       ``(6) Homeless individual.--The term `homeless individual' 
     has the same meaning as in section 103 of this Act.
       ``(7) Insular area.--The term `insular area' means the 
     Virgin Islands, Guam, American Samoa, and the Northern 
     Mariana Islands.
       ``(8) Low-demand services and referrals.--The term `low-
     demand services and referrals' means the provision of health 
     care, mental health, substance abuse, and other supportive 
     services and referrals for services in a noncoercive manner, 
     which may include medication management, education, 
     counseling, job training, and assistance in obtaining 
     entitlement benefits and in obtaining other supportive 
     services, including mental health and substance abuse 
     treatment.
       ``(9) Metropolitan city.--The term `metropolitan city' has 
     the same meaning as in section 102(a) of the Housing and 
     Community Development Act of 1974.
       ``(10) Person with disabilities.--The term `person with 
     disabilities' means a person who--
       ``(A) has a disability as defined in section 223 of the 
     Social Security Act;
       ``(B) is determined to have, as determined by the 
     Secretary, a physical, mental, or emotional impairment 
     which--
       ``(i) is expected to be of long-continued and indefinite 
     duration;
       ``(ii) substantially impedes his or her ability to live 
     independently; and
       ``(iii) is of such a nature that such ability could be 
     improved by more suitable housing conditions;
       ``(C) has a developmental disability, as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act; or
       ``(D) has the disease of acquired immunodeficiency syndrome 
     or any conditions arising from the etiologic agent for 
     acquired immunodeficiency syndrome, except that this 
     subparagraph shall not be construed to limit eligibility 
     under subparagraphs (A) through (C) or the provisions 
     referred to in subparagraphs (A) through (C).
       ``(11) Private nonprofit organization.--The term `private 
     nonprofit organization' means a private organization--
       ``(A) no part of the net earnings of which inures to 
     benefits of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(12) Project sponsor.--The term `project sponsor' means 
     an entity that--
       ``(A) provides housing or assistance for homeless 
     individuals or families by carrying out activities under this 
     title; and
       ``(B) meets such minimum standards as the Secretary 
     considers appropriate.
       ``(13) Recipient.--The term `recipient' means a grantee 
     (other than a State when it is distributing grant amounts to 
     State recipients) and a State recipient.
       ``(14) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(15) State.--The term `State' means each of the several 
     States and the Commonwealth of Puerto Rico. The term includes 
     an agency or instrumentality of a State that is established 
     pursuant to legislation and designated by the chief executive 
     officer to act on behalf of the jurisdiction with regard to 
     provisions of this title.
       ``(16) State recipient.--The term `State recipient' means 
     the following entities receiving amounts from the State under 
     section 408(c)(2)(B):
       ``(A) A unit of general local government within the State.
       ``(B) In the case of an area of the State with significant 
     homeless needs, if no State recipient is identified, 1 or 
     more private nonprofit organizations serving that area.
       ``(17) Unit of general local government.--The term `unit of 
     general local government' means--
       ``(A) a city, town, township, county, parish, village, or 
     other general purpose political subdivision of a State;
       ``(B) the District of Columbia; and
       ``(C) any agency or instrumentality thereof that is 
     established pursuant to legislation and designated by the 
     chief executive officer to act on behalf of the jurisdiction 
     with regard to provisions of this title.
       ``(18) Urban county.--The term `urban county' has the same 
     meaning as in section 102(a) of the Housing and Community 
     Development Act of 1974.
       ``(19) Very low-income families.--The term `very low-income 
     families' has the same meaning as in section 104 of the 
     Cranston-Gonzalez National Affordable Housing Act.

     ``SEC. 402. AUTHORIZATIONS.

       ``(a) In General.--The Secretary may make grants to carry 
     out activities to assist homeless individuals and families in 
     support of continuum of care systems in accordance with this 
     title.
       ``(b) Funding Amounts.--There are authorized to be 
     appropriated to carry out this title, to remain available 
     until expended--
       ``(1) $1,050,000,000 for fiscal year 2001;
       ``(2) $1,070,000,000 for fiscal year 2002; and
       ``(3) $1,090,000,000 for fiscal year 2003.

     ``SEC. 403. APPLICATION.

       ``(a) In General.--Each applicant shall submit the 
     application required under this section in such form and in 
     accordance with such procedures as the Secretary shall 
     prescribe. If the applicant is a State or unit of general 
     local government, the application shall be submitted as part 
     of the homeless assistance component of the consolidated 
     plan.
       ``(b) Continuum of Care Submission.--
       ``(1) In general.--The allocation unit of general local 
     government, insular area, or State shall prepare, and submit 
     those portions of the application related to the development 
     and implementation of the continuum of care system, as 
     described in paragraph (2) or (3), as applicable.
       ``(2) Submission by allocation unit of general local 
     government or insular area.--The allocation unit of general 
     local government or insular area shall develop and submit to 
     the Secretary--
       ``(A) a continuum of care system consistent with that 
     defined under section 401(4), which shall be designed to 
     incorporate any strengths and fill any gaps in the current 
     homeless assistance activities of the jurisdiction, and shall 
     include a description of efforts to address the problems 
     faced by each of the different subpopulations of homeless 
     individuals;
       ``(B) a multiyear strategy for implementing the continuum 
     of care system, including appropriate timetables and budget 
     estimates for accomplishing each element of the strategy;
       ``(C) a 1-year plan, identifying all activities to be 
     carried out with assistance under this title and with 
     assistance from other HUD resources allocated in accordance 
     with the consolidated plan, and describing the manner in 
     which these activities will further the strategy; and
       ``(D) any specific performance measures and benchmarks for 
     use in assessing the performance of the grantee under this 
     title that are in addition to national performance measures 
     and benchmarks established by the Secretary.
       ``(3) Submission by state.--The State shall develop and 
     submit to the Secretary--
       ``(A) a continuum of care system consistent with that 
     defined under section 401(4), which shall be designed to 
     incorporate any strengths and fill any gaps in the current 
     homeless assistance activities of the jurisdiction, and shall 
     include a description of efforts to address the problems 
     faced by each of the different subpopulations of homeless 
     individuals;
       ``(B) a multiyear strategy for implementing the continuum 
     of care systems in areas of the State outside allocation 
     units of general local government, including the actions the 
     State will take to achieve the goals set out in the strategy;
       ``(C) a 1-year plan identifying--
       ``(i) in the case of a State carrying out its own 
     activities under section 408(c)(2)(A), the activities to be 
     carried out with assistance under this title and describing 
     the manner in which these activities will further the 
     strategy; and

[[Page S7875]]

       ``(ii) in the case of a State distributing grant amounts to 
     State recipients under section 408(c)(2)(B), the criteria 
     that the State will use in distributing amounts awarded under 
     this title, the method of distribution, and the relationship 
     of the method of distribution to the homeless assistance 
     strategy; and
       ``(D) any specific performance measures and benchmarks for 
     use in assessing the performance of the grantee under this 
     title that are in addition to national performance measures 
     and benchmarks established by the Secretary.
       ``(c) Submission Requirements for Applicants Other Than 
     States.--Each application from an applicant other than a 
     State shall include, at a minimum--
       ``(1) the continuum of care submission described in 
     subsection (b)(2);
       ``(2) a determination on whether the assistance under this 
     title will be administered by the jurisdiction, a public 
     agency or private nonprofit organization, or the State, as 
     appropriate under subsections (b) and (c) of section 408;
       ``(3) certifications or other such forms of proof of 
     commitments of financial and other resources sufficient to 
     comply with the match requirements under section 405(a)(1);
       ``(4) a certification that the applicant is following a 
     current approved consolidated plan;
       ``(5) a certification that the grant will be conducted and 
     administered in conformity with title VI of the Civil Rights 
     Act of 1964, section 504 of the Rehabilitation Act of 1973, 
     and the Fair Housing Act, and the grantee will affirmatively 
     further fair housing; and
       ``(6) a certification that the applicant will comply with 
     the requirements of this title and other applicable laws.
       ``(d) Submission Requirements for States.--Each application 
     from a State shall include--
       ``(1) the continuum of care submission described in 
     subsection (b)(3);
       ``(2) certifications or other such forms of proof of 
     commitments of financial and other resources sufficient to 
     comply with the match requirements under section 405(a)(1);
       ``(3) a certification that the applicant is following a 
     current approved consolidated plan;
       ``(4) a certification that the grant will be conducted and 
     administered in conformity with title VI of the Civil Rights 
     Act of 1964, section 504 of the Rehabilitation Act of 1973, 
     and the Fair Housing Act, and the grantee will affirmatively 
     further fair housing; and
       ``(5) a certification that the State and State recipients 
     will comply with the requirements of this title and other 
     applicable laws.
       ``(e) Application Approval.--The application shall be 
     approved by the Secretary unless the Secretary determines 
     that the application is substantially incomplete.

     ``SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES; CONTINUUM OF 
                   CARE APPROVAL.

       ``(a) Eligible Projects.--Grants under this title may be 
     used to carry out activities described in subsection (b) in 
     support of the following types of projects:
       ``(1) Emergency assistance.--Assistance designed to prevent 
     homelessness or to meet the emergency needs of homeless 
     individuals and families, including 1 or more of the 
     following:
       ``(A) Prevention.--Efforts to prevent homelessness of a 
     very low-income individual or family that has received an 
     eviction notice, notice of mortgage foreclosure, or notice of 
     termination of utilities, if--
       ``(i) the individual or family cannot make the required 
     payments due to a sudden reduction in income or other 
     financial emergency; and
       ``(ii) the assistance is necessary to avoid imminent 
     eviction, foreclosure, or termination of services.
       ``(B) Outreach and assessment.--Efforts designed to inform 
     individuals and families about the availability of services, 
     to bring them into the continuum of care system, and to 
     determine which services or housing are appropriate to the 
     needs of the individual or family.
       ``(C) Emergency shelter.--The provision of short-term 
     emergency shelter with essential supportive services for 
     homeless individuals and families.
       ``(2) Safe haven housing.--A structure or a clearly 
     identifiable portion of a structure that--
       ``(A) provides housing and low-demand services and 
     referrals for homeless individuals with serious mental 
     illness--
       ``(i) who are currently residing primarily in places not 
     designed for, or ordinarily used as, a regular sleeping 
     accommodation for human beings; and
       ``(ii) who have been unwilling or unable to participate in 
     mental health or substance abuse treatment programs or to 
     receive other supportive services; except that a person whose 
     sole impairment is substance abuse shall not be considered an 
     eligible person;
       ``(B) provides 24-hour residence for eligible individuals 
     who may reside for an unspecified duration;
       ``(C) provides private or semiprivate accommodations;
       ``(D) may provide for the common use of kitchen facilities, 
     dining rooms, and bathrooms;
       ``(E) may provide supportive services to eligible persons 
     who are not residents on a drop-in basis;
       ``(F) provides occupancy limited to not more than 25 
     persons; and
       ``(G) provides housing for victims of spousal abuse, and 
     their dependents.
       ``(3) Transitional housing.--Housing and appropriate 
     supportive services that are designed to facilitate the 
     movement of homeless individuals to permanent housing, 
     generally within 24 months.
       ``(4) Permanent housing and permanent housing and 
     supportive services for persons with disabilities.--Permanent 
     housing for homeless individuals, and permanent housing and 
     supportive services for homeless persons with disabilities, 
     the latter of which may be designed to provide housing and 
     services solely for persons with disabilities, or may provide 
     housing for such persons in a multifamily housing, 
     condominium, or cooperative project.
       ``(5) Single room occupancy housing.--A unit for occupancy 
     by 1 person, which need not (but may) contain food 
     preparation or sanitary facilities, or both, and may provide 
     services such as mental health services, substance abuse 
     treatment, job training, and employment programs.
       ``(6) Other projects.--Such other projects as the Secretary 
     determines will further the purposes of title I of the 
     Homelessness Assistance and Management Reform Act of 1997.
       ``(b) Eligible Activities.--Grants under this title may be 
     used to carry out the following activities in support of 
     projects described in subsection (a):
       ``(1) Homelessness prevention activities.--Short-term 
     mortgage, rental, and utilities payments and other short-term 
     assistance designed to prevent the imminent homelessness of 
     the individuals and families described in subsection 
     (a)(1)(A).
       ``(2) Outreach and assessment.--Drop-in centers, 24-hour 
     hotlines, counselors, and other activities designed to engage 
     homeless individuals and families, bring them into the 
     continuum of care system, and determine their individual 
     housing and service needs.
       ``(3) Acquisition and rehabilitation.--The acquisition, 
     rehabilitation, or acquisition and rehabilitation of real 
     property.
       ``(4) New construction.--The new construction of a project, 
     including the cost of the site.
       ``(5) Operating costs.--The costs of operating a project, 
     including salaries and benefits, maintenance, insurance, 
     utilities, replacement reserve accounts, and furnishings.
       ``(6) Leasing.--Leasing of an existing structure or 
     structures, or units within these structures, including the 
     provision of long-term rental assistance contracts.
       ``(7) Tenant assistance.--The provision of security or 
     utility deposits, rent, or utility payments for the first 
     month of residence at a new location, and relocation 
     assistance.
       ``(8) Supportive services.--The provision of essential 
     supportive services including case management, housing 
     counseling, job training and placement, primary health care, 
     mental health services, substance abuse treatment, child 
     care, transportation, emergency food and clothing, family 
     violence services, education services, moving services, 
     assistance in obtaining entitlement benefits, and referral to 
     veterans services and referral to legal services.
       ``(9) Administration.--
       ``(A) In general.--Expenses incurred in--
       ``(i) planning, developing, and establishing a program 
     under this title; and
       ``(ii) administering the program.
       ``(B) Limitations.--Not more than the following amounts may 
     be used for administrative costs under subparagraph (A):
       ``(i) 10 percent of any grant amounts provided for a 
     recipient for a fiscal year (including amounts used by a 
     State to carry out its own activities under section 
     408(c)(1)(A)).
       ``(ii) 5 percent of any grant amounts provided to a State 
     for a fiscal year that the State uses to distribute funds to 
     a State recipient under section 408(c)(1)(B).
       ``(10) Capacity building.--
       ``(A) In general.--Building the capacity of private 
     nonprofit organizations to participate in the continuum of 
     care system of the recipient.
       ``(B) Limitations.--Not more than the following amounts may 
     be used for capacity building under subparagraph (A):
       ``(i) 2 percent of any grant amounts provided for a 
     recipient for a fiscal year (including amounts used by a 
     State to carry out its own activities under section 
     408(c)(1)(A)).
       ``(ii) 2 percent of any grant amounts provided to a State 
     for a fiscal year that the State uses to distribute funds to 
     a State recipient under section 408(c)(1)(B).
       ``(11) Other activities.--Other activities as the Secretary 
     determines will further the purposes of title I of the 
     Homelessness Assistance and Management Reform Act of 1997.
       ``(c) Targeting to Subpopulations of Persons With 
     Disabilities.--Notwithstanding any other provision of law, 
     projects for persons with disabilities assisted under this 
     title may be targeted to specific subpopulations of such 
     persons, including persons who--
       ``(1) are seriously mentally ill;
       ``(2) have chronic problems with drugs, alcohol, or both; 
     or
       ``(3) have acquired immunodeficiency syndrome or any 
     conditions arising from the etiologic agency for acquired 
     immunodeficiency syndrome.

     ``SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE OF EFFORT.

       ``(a) Matching Requirement.--
       ``(1) In general.--Each recipient shall make contributions 
     totaling not less than $1 for every $3 made available for the 
     recipient

[[Page S7876]]

     for any fiscal year under this title to carry out eligible 
     activities. At the end of each program year, each recipient 
     shall certify to the Secretary that it has complied with this 
     section, and shall include with the certification a 
     description of the sources and amounts of the matching 
     contributions. Contributions under this section may not come 
     from assistance provided under this title.
       ``(2) Calculation of amounts.--In calculating the amount of 
     matching contributions required under paragraph (1), a 
     recipient may include--
       ``(A) any funds derived from a source, other than 
     assistance under this title or amounts subject to subsection 
     (b);
       ``(B) the value of any lease on a building; and
       ``(C) any salary paid to staff or any volunteer labor 
     contributed to carry out the program.
       ``(b) Limitation on Use of Funds.--No assistance received 
     under this title may be used to replace other funds 
     previously used, or designated for use, by the State, State 
     recipient (except when a State recipient is a private 
     nonprofit organization), allocation unit of general local 
     government or insular area to assist homeless individuals and 
     families.

     ``SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT SPONSORS, 
                   AND OWNERS.

       ``(a) Use of Assistance Through Private Nonprofit 
     Organizations.--
       ``(1) In general.--Each recipient shall ensure that at 
     least 50 percent of the grant amounts that are made available 
     to it under this title for any fiscal year are made available 
     to project sponsors that are private nonprofit organizations.
       ``(2) Waiver.--The Secretary may waive or reduce the 
     requirement of paragraph (1), if the recipient demonstrates 
     to the Secretary that the requirement interferes with the 
     ability of the recipient to provide assistance under this 
     title because of the paucity of qualified private nonprofit 
     organizations in the jurisdiction of the recipient.
       ``(b) Housing Quality.--Each recipient shall ensure that 
     housing assisted with grant amounts provided under this title 
     is decent, safe, and sanitary and complies with all 
     applicable State and local housing codes, building codes, and 
     licensing requirements in the jurisdiction in which the 
     housing is located.
       ``(c) Prevention of Undue Benefit.--The Secretary may 
     prescribe such terms and conditions as the Secretary 
     considers necessary to prevent project sponsors from unduly 
     benefiting from the sale or other disposition of projects, 
     other than a sale or other disposition resulting in the use 
     of the project for the direct benefit of very low-income 
     families.
       ``(d) Confidentiality.--Each recipient shall develop and 
     implement procedures to ensure the confidentiality of records 
     pertaining to any individual provided services assisted under 
     this title for family violence prevention or treatment or for 
     such medical or other conditions as the Secretary may 
     prescribe, and to ensure that the address or location of any 
     project providing such services will, except with written 
     authorization of the person or persons responsible for the 
     operation of such project, not be made public.
       ``(e) Employment of Homeless Individuals.--
       ``(1) In general.--To the maximum extent practicable, the 
     Secretary shall ensure that recipients, through employment, 
     volunteer services, or otherwise, provide opportunities for 
     homeless individuals and families to participate in--
       ``(A) constructing, renovating, maintaining, and operating 
     facilities assisted under this title;
       ``(B) providing services so assisted; and
       ``(C) providing services for occupants of facilities so 
     assisted.
       ``(2) No displacement of employed workers.--In carrying out 
     paragraph (1), recipients shall not displace employed 
     workers.
       ``(f) Occupancy Charge.--Any homeless individual or family 
     residing in a dwelling unit assisted under this title may be 
     required to pay an occupancy charge in an amount determined 
     by the grantee providing the assistance, which may not exceed 
     an amount equal to 30 percent of the adjusted income (as 
     defined in section 3(b) of the United States Housing Act of 
     1937 or any other subsequent provision of Federal law 
     defining the term for purposes of eligibility for, or rental 
     charges in, public housing) of the individual or family. 
     Occupancy charges paid may be reserved, in whole or in part, 
     to assist residents in moving to permanent housing.

     ``SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.

       ``(a) Insular Areas.--
       ``(1) Allocation.--For each fiscal year, the Secretary 
     shall allocate assistance under this title to insular areas, 
     in an amount equal to 0.20 percent of the amounts 
     appropriated under the first sentence of section 402(b).
       ``(2) Distribution.--The Secretary shall provide for the 
     distribution of amounts reserved under paragraph (1) for 
     insular areas pursuant to specific criteria or a distribution 
     formula prescribed by the Secretary.
       ``(b) States and Allocation Units of General Local 
     Government.--
       ``(1) In general.--For each fiscal year, of the amounts 
     appropriated under the first sentence of section 402(b) that 
     remain after amounts are reserved for insular areas under 
     subsection (a), the Secretary shall allocate assistance 
     according to the formula described in paragraph (2).
       ``(2) Formula.--
       ``(A) Allocation.--The Secretary shall allocate amounts for 
     allocation units of general local government and States, in a 
     manner that ensures that the percentage of the total amount 
     available under this title for any fiscal year for any 
     allocation unit of general local government or State is equal 
     to the percentage of the total amount available for section 
     106 of the Housing and Community Development Act of 1974 for 
     the same fiscal year that is allocated for the allocation 
     unit of general local government or State.
       ``(B) Minimum allocation.--
       ``(i) Graduated minimum grant allocations.--A State, 
     metropolitan city, or urban county shall receive no less 
     funding in the first fiscal year after the effective date of 
     this Act than 90 percent of the average of the amounts 
     awarded annually to that jurisdiction for homeless assistance 
     programs administered by the Secretary under this title 
     during fiscal years 1996 through 1999, not less than 85 
     percent in the second full fiscal year after the effective 
     date of this Act, not less than 80 percent in the third and 
     fourth fiscal years after the effective date of this Act, and 
     not less than 75 percent in the fifth full fiscal year after 
     the effective date of this Act, but only if the amount 
     appropriated in each such fiscal year exceeds $1,000,000,000. 
     If that amount does not exceed $1,000,000,000 in any fiscal 
     year referred to in the first sentence of this paragraph, the 
     jurisdiction may receive its proportionate share of the 
     amount appropriated which may be less than the amount in such 
     sentence for such fiscal year.
       ``(ii) Reduction.--In any fiscal year, the Secretary may 
     provide a grant under this subsection for a State, 
     metropolitan city, or urban county, in an amount less than 
     the amount allocated under those paragraphs, if the Secretary 
     determines that the jurisdiction has failed to comply with 
     requirements of this title, or that such action is otherwise 
     appropriate.
       ``(C) Study; submission of information to congress related 
     to alternative methods of allocation.--Not later than 1 year 
     after the effective date of the Local Housing Opportunities 
     Act, the Secretary shall--
       ``(i) submit to Congress--

       ``(I) the best available methodology for determining a 
     formula relative to the geographic allocation of funds under 
     this subtitle among entitlement communities and 
     nonentitlement areas based on the incidence of homelessness 
     and factors that lead to homelessness;
       ``(II) proposed alternatives to the formula submitted 
     pursuant to subclause (I) for allocating funds under this 
     section, including an evaluation and recommendation on a 75/
     25 percent formula and other allocations of flexible block 
     grant homeless assistance between metropolitan cities and 
     urban counties and States under subparagraph (A);
       ``(III) an analysis of the deficiencies in the current 
     allocation formula described in section 106(b) of the Housing 
     and Community Development Act of 1974;
       ``(IV) an analysis of the adequacy of current indices used 
     as proxies for measuring homelessness; and
       ``(V) an analysis of the bases underlying each of the 
     proposed allocation methods;

       ``(ii) perform the duties required by this paragraph in 
     ongoing consultation with--

       ``(I) the Subcommittee on Housing Opportunity and Community 
     Development of the Committee on Banking, Housing, and Urban 
     Affairs of the Senate;
       ``(II) the Subcommittee on Housing and Community 
     Opportunity of the Committee on Banking and Financial 
     Services of the House of Representatives;
       ``(III) organizations representing States, metropolitan 
     cities, and urban counties;
       ``(IV) organizations representing rural communities;
       ``(V) organizations representing veterans;
       ``(VI) organizations representing persons with 
     disabilities;
       ``(VII) members of the academic community; and
       ``(VIII) national homelessness advocacy groups; and

       ``(iii) estimate the amount of funds that will be received 
     annually by each entitlement community and nonentitlement 
     area under each such alternative allocation system and 
     compare such amounts to the amount of funds received by each 
     entitlement community and nonentitlement area in prior years 
     under this section.

     ``SEC. 408. ADMINISTRATION OF PROGRAM.

       ``(a) In General.--The Secretary shall prescribe such 
     procedures and requirements as the Secretary deems 
     appropriate for administering grant amounts under this title.
       ``(b) Allocation Units of General Local Government and 
     Insular Areas.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     allocation unit of general local government or insular area 
     shall administer grant amounts received under subsection (a) 
     or (b) of section 407 for any fiscal year.
       ``(2) Agencies and organizations designated by 
     jurisdiction.--
       ``(A) Designation of other entities to administer grant 
     amounts.--An allocation unit of general local government or 
     insular area may elect for any fiscal year to designate a 
     public agency or a private nonprofit organization (or a 
     collaboration of such organizations) to administer grant 
     amounts received under subsection (a) or (b) of section 407 
     instead of the jurisdiction.

[[Page S7877]]

       ``(B) Provision of grant amounts.--The Secretary may, at 
     the request of a jurisdiction under subparagraph (A), provide 
     grant amounts directly to the agency or organization 
     designated under that subparagraph.
       ``(c) States.--
       ``(1) In general.--The State--
       ``(A) may use not more than 15 percent of the amount made 
     available to the State under section 407(b)(2) for a fiscal 
     year to carry out its own homeless assistance program under 
     this title; and
       ``(B) shall distribute the remaining amounts to State 
     recipients.
       ``(2) Distribution of amounts to state recipients.--
       ``(A) In general.--
       ``(i) Options.--States distributing amounts under paragraph 
     (1)(B) to State recipients that are units of general local 
     government shall, for each fiscal year, afford each such 
     recipient the options of--

       ``(I) administering the grant amounts on its own behalf;
       ``(II) designating (as provided by subsection (b)(2)) a 
     public agency or a private nonprofit organization (or a 
     combination of such organizations) to administer the grant 
     amounts instead of the jurisdiction; or
       ``(III) entering into an agreement with the State, in 
     consultation with private nonprofit organizations providing 
     assistance to homeless individuals and families in the 
     jurisdiction, under which the State will administer the grant 
     amounts instead of the jurisdiction.

       ``(ii) Effect of designation.--A State recipient 
     designating an agency or organization as provided by clause 
     (i)(II), or entering into an agreement with the State under 
     clause (i)(III), shall remain the State recipient for 
     purposes of this title.
       ``(iii) Direct assistance.--The State may, at the request 
     of the State recipient, provide grant amounts directly to the 
     agency or organization designated under clause (i)(II).
       ``(B) Application.--
       ``(i) In general.--The State shall distribute amounts to 
     State recipients (or to agencies or organizations designated 
     under subparagraph (A)(i)(II), as appropriate) on the basis 
     of an application containing such information as the State 
     may prescribe, except that each application shall reflect the 
     State application requirements in section 403(d) and evidence 
     an intent to facilitate the establishment of a continuum of 
     care system.
       ``(ii) Waiver.--The State may waive the requirements in 
     clause (i) with respect to 1 or more proposed activities, if 
     the State determines that--

       ``(I) the activities are necessary to meet the needs of 
     homeless individuals and families within the jurisdiction; 
     and
       ``(II) a continuum of care system is not necessary, due to 
     the nature and extent of homelessness in the jurisdiction.

       ``(C) Preference.--In selecting State recipients and making 
     awards under subparagraph (B), the State shall give 
     preference to applications that demonstrate higher relative 
     levels of homeless need and fiscal distress.

     ``SEC. 409. CITIZEN PARTICIPATION.

       ``(a) In General.--Each recipient shall ensure that 
     citizens, appropriate private nonprofit organizations, and 
     other interested groups and entities participate fully in the 
     development and carrying out of the program authorized under 
     this title.
       ``(b) Allocation Units of General Local Government and 
     Insular Areas.--The chief executive officer of each 
     allocation unit of general local government or insular area 
     shall designate an entity, which shall assist the 
     jurisdiction--
       ``(1) by developing the continuum of care system and other 
     submission requirements, and by submitting the system and 
     such other submission requirements for its approval under 
     section 403(b);
       ``(2) in overseeing the activities carried out with 
     assistance under this title; and
       ``(3) in preparing the performance report under section 
     410(b).
       ``(c) State Recipients.--The chief executive officer of the 
     State shall designate an entity which shall assist the 
     State--
       ``(1) by developing the continuum of care system and other 
     submission requirements, and by submitting the system and 
     such other submission requirements for its approval under 
     section 403(b);
       ``(2) in determining the percentage of the grant that the 
     State should use--
       ``(A) to carry out its own homeless assistance program 
     under section 408(c)(1)(A); or
       ``(B) to distribute amounts to State recipients under 
     section 408(c)(1)(B);
       ``(3) in carrying out the responsibilities of the State, if 
     the State enters into an agreement with a State recipient to 
     administer the amounts of the State recipient under section 
     408(c)(2)(A)(i)(III);
       ``(4) in overseeing the activities carried out with 
     assistance under this title; and
       ``(5) in preparing the performance report under section 
     410(b).

     ``SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS, AND GRANT 
                   ADJUSTMENTS.

       ``(a) National Performance Measures and Benchmarks.--The 
     Secretary shall establish national performance measures and 
     benchmarks to assist the Secretary, grantees, citizens, and 
     others in assessing the use of funds made available under 
     this title.
       ``(b) Grantee Performance and Evaluation Report.--
       ``(1) In general.--Each grantee shall submit to the 
     Secretary a performance and evaluation report concerning the 
     use of funds made available under this title.
       ``(2) Timing and contents.--The report under subsection (a) 
     shall be submitted at such time as the Secretary shall 
     prescribe and contain an assessment of the performance of the 
     grantee as measured against any specific performance measures 
     and benchmarks (developed under section 403), the national 
     performance measures and benchmarks (as established under 
     subsection (a)), and such other information as the Secretary 
     shall prescribe. Such performance measures and benchmarks 
     shall include a measure of the number of homeless individuals 
     who transition to self-sufficiency, and a measure of the 
     number of homeless individuals who have ended a chemical 
     dependency or drug addiction.
       ``(3) Availability to public.--Before the submission of a 
     report under subsection (a), the grantee shall make the 
     report available to citizens, public agencies, and other 
     interested parties in the jurisdiction of the grantee in 
     sufficient time to permit them to comment on the report 
     before submission.
       ``(c) Performance Reviews, Audits, and Grant Adjustments.--
       ``(1) Performance reviews and audits.--The Secretary shall, 
     not less than annually, make such reviews and audits as may 
     be necessary or appropriate to determine--
       ``(A) in the case of a grantee (other than a grantee 
     referred to in subparagraph (B)), whether the grantee--
       ``(i) has carried out its activities in a timely manner;
       ``(ii) has made progress toward implementing the continuum 
     of care system in conformity with its application under this 
     title; and
       ``(iii) has carried out its activities and certifications 
     in accordance with the requirements of this title and other 
     applicable laws; and
       ``(B) in the case of States distributing grant amounts to 
     State recipients, whether the State--
       ``(i) has distributed amounts to State recipients in a 
     timely manner and in conformance with the method of 
     distribution described in its application;
       ``(ii) has carried out its activities and certifications in 
     compliance with the requirements of this title and other 
     applicable laws; and
       ``(iii) has made such performance reviews and audits of the 
     State recipients as may be necessary or appropriate to 
     determine whether they have satisfied the applicable 
     performance criteria set forth in subparagraph (A).
       ``(2) Grant adjustments.--The Secretary may make 
     appropriate adjustments in the amount of grants in accordance 
     with the findings of the Secretary under this subsection. 
     With respect to assistance made available for State 
     recipients, the Secretary may adjust, reduce, or withdraw 
     such assistance, or take other action as appropriate in 
     accordance with the performance reviews and audits of the 
     Secretary under this subsection, except that amounts already 
     properly expended on eligible activities under this title 
     shall not be recaptured or deducted from future assistance to 
     such recipients.

     ``SEC. 411. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

       ``No person in the United States shall, on the ground of 
     race, color, national origin, religion, or sex, be excluded 
     from participation in, be denied the benefits of, or be 
     subjected to discrimination under any program or activity 
     funded in whole or in part with funds made available under 
     this title. Any prohibition against discrimination on the 
     basis of age under the Age Discrimination Act of 1975 or with 
     respect to an otherwise qualified individual with a 
     disability, as provided in section 504 of the Rehabilitation 
     Act of 1973, shall also apply to any such program or 
     activity.

     ``SEC. 412. RETENTION OF RECORDS, REPORTS, AND AUDITS.

       ``(a) Retention of Records.--Each recipient shall keep such 
     records as may be reasonably necessary--
       ``(1) to disclose the amounts and the disposition of the 
     grant amounts, including the types of activities funded and 
     the nature of populations served with these funds; and
       ``(2) to ensure compliance with the requirements of this 
     title.
       ``(b) Access to Documents by the Secretary.--The Secretary 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records of any recipient 
     that are pertinent to grant amounts received in connection 
     with this title.
       ``(c) Access to Documents by the Comptroller General.--The 
     Comptroller General of the United States, or any duly 
     authorized representative of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records of any recipient that 
     are pertinent to grant amounts received in connection with 
     this title.''.

     SEC. 303. REPEAL AND SAVINGS PROVISIONS.

       (a) Authority To Provide Assistance.--Beginning on the 
     effective date of this Act, the Secretary may not make 
     assistance available under title IV of the Stewart B. 
     McKinney Homeless Assistance Act (as in existence immediately 
     before such effective date), except pursuant to a legally 
     binding commitment entered into before that date.
       (b) Law Governing.--Any amounts made available under title 
     IV of the Stewart B.

[[Page S7878]]

     McKinney Homeless Assistance Act before the effective date of 
     this Act shall continue to be governed by the provisions of 
     that title, as they existed immediately before that effective 
     date, except that each grantee may, in its discretion, 
     provide for the use, in accordance with the provisions of 
     title IV of the Stewart B. McKinney Homeless Assistance Act 
     (as amended by this title), of any such amounts that it has 
     not obligated.
       (c) Status of Funds.--
       (1) In general.--Any amounts appropriated under title IV of 
     the Stewart B. McKinney Homeless Assistance Act before the 
     effective date of this Act that are available for obligation 
     immediately before such effective date, or that become 
     available for obligation on or after that date, shall be 
     transferred and added to amounts appropriated for title IV of 
     the Stewart B. McKinney Homeless Assistance Act (as amended 
     by this title), and shall be available for use in accordance 
     with the provisions of such title IV.
       (2) Availability.--Any amounts transferred under paragraph 
     (1) shall remain available for obligation only for the time 
     periods for which such respective amounts were available 
     before such transfer.

     SEC. 304. IMPLEMENTATION.

       (a) Initial Allocation of Assistance.--Not later than the 
     expiration of the 60-day period following the date of 
     enactment of an Act appropriating funds to carry out title IV 
     of the Stewart B. McKinney Homeless Assistance Act (as 
     amended by this title), the Secretary shall notify each 
     allocation unit of general local government, insular area, 
     and State of its allocation under the McKinney Homeless 
     Assistance Performance Fund.
       (b) Issuance of Necessary Regulations.--Notwithstanding 
     section 7(o) of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535(o)), the Secretary shall 
     issue such regulations as may be necessary to implement any 
     provision of title I of this Act, and any amendment made by 
     this title, in accordance with section 552 or 553 of title 5, 
     United States Code, as determined by the Secretary.
       (c) Use of Existing Rules.--In implementing any provision 
     of this title, the Secretary may, in the discretion of the 
     Secretary, provide for the use of existing rules to the 
     extent appropriate, without the need for further rulemaking.

                        TITLE IV--RURAL HOUSING

     SEC. 401. MUTUAL AND SELF-HELP HOUSING TECHNICAL ASSISTANCE 
                   AND TRAINING GRANTS AUTHORIZATION.

       Section 513(b) of the Housing Act of 1949 (42 U.S.C. 
     1483(b)) is amended by striking paragraph (8) and inserting 
     the following:
       ``(8) For grants under paragraphs (1)(A) and (2) of section 
     523(b)--
       ``(A) $40,000,000 for fiscal year 2001;
       ``(B) $45,000,000 for fiscal year 2002; and
       ``(C) $50,000,000 for fiscal year 2003.''.

     SEC. 402. ENHANCEMENT OF THE RURAL HOUSING REPAIR LOAN 
                   PROGRAM FOR THE ELDERLY.

       Section 504(a) of the Housing Act of 1949 (42 U.S.C. 
     1474(a)) is amended by striking ``$2,500'' and inserting 
     ``$7,500''.

     SEC. 403. ENHANCEMENT OF EFFICIENCY OF RURAL HOUSING 
                   PRESERVATION GRANTS.

       Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is 
     amended--
       (1) by striking subsection (c);
       (2) in subsection (d)(3)(H), by striking ``(e)(1)(B)(iv)'' 
     and inserting ``(d)(1)(B)(iv)''; and
       (3) by redesignating subsections (d) through (i) as 
     subsections (c) through (h), respectively.

     SEC. 404. PROJECT ACCOUNTING RECORDS AND PRACTICES.

       Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is 
     amended by striking subsection (z) and inserting the 
     following:
       ``(z) Accounting and Recordkeeping Requirements.--
       ``(1) Accounting standards.--The Secretary shall require 
     that borrowers in programs authorized by this section 
     maintain accounting records in accordance with generally 
     accepted accounting principles for all projects that receive 
     funds from loans made or guaranteed by the Secretary under 
     this section.
       ``(2) Record retention requirements.--The Secretary shall 
     require that borrowers in programs authorized by this section 
     retain for a period of not less than 6 years and make 
     available to the Secretary in a manner determined by the 
     Secretary, all records required to be maintained under this 
     subsection and other records identified by the Secretary in 
     applicable regulations.
       ``(aa) Double Damage Remedy for Unauthorized Use of Housing 
     Projects Assets and Income.--
       ``(1) Action to recover assets or income.--
       ``(A) In general.--The Secretary may request the Attorney 
     General to bring an action in a district court of the United 
     States to recover any assets or income used by any person in 
     violation of the provisions of a loan made or guaranteed by 
     the Secretary under this section or in violation of any 
     applicable statute or regulation.
       ``(B) Improper documentation.--For purposes of this 
     subsection, a use of assets or income in violation of the 
     applicable loan, loan guarantee, statute, or regulation shall 
     include any use for which the documentation in the books and 
     accounts does not establish that the use was made for a 
     reasonable operating expense or necessary repair of the 
     project or for which the documentation has not been 
     maintained in accordance with the requirements of the 
     Secretary and in reasonable condition for proper audit.
       ``(C) Definition of person.--In this subsection, the term 
     `person' means--
       ``(i) any individual or entity that borrows funds in 
     accordance with programs authorized by this section;
       ``(ii) any individual or entity holding 25 percent or more 
     interest of any entity that borrows funds in accordance with 
     programs authorized by this section; or
       ``(iii) any officer, director, or partner of an entity that 
     borrows funds in accordance with programs authorized by this 
     section.
       ``(2) Amount recoverable.--
       ``(A) In general.--In any judgment favorable to the United 
     States entered under this subsection, the Attorney General 
     may recover double the value of the assets and income of the 
     project that the court determines to have been used in 
     violation of the provisions of a loan made or guaranteed by 
     the Secretary under this section or any applicable statute or 
     regulation, plus all costs related to the action, including 
     reasonable attorney and auditing fees.
       ``(B) Application of recovered funds.--Notwithstanding any 
     other provision of law, the Secretary may apply any recovery 
     of funds under this subsection to activities authorized under 
     this section and such funds shall remain available until 
     expended.
       ``(3) Time limitation.--Notwithstanding any other statute 
     of limitations, the Attorney General may bring an action 
     under this subsection at any time up to and including 6 years 
     after the date that the Secretary discovered or should have 
     discovered the violation of the provisions of this section or 
     any related statutes or regulations.
       ``(4) Continued availability of other remedies.--The remedy 
     provided in this subsection is in addition to and not in 
     substitution of any other remedies available to the Secretary 
     or the United States.''.

     SEC. 405. OPERATING ASSISTANCE FOR MIGRANT FARM WORKER 
                   PROJECTS.

       Section 521(a)(5)(A) of the Housing Act of 1949 (42 U.S.C. 
     1490a(a)(5)(A)) is amended in the last sentence by striking 
     ``project'' and inserting ``tenant or unit''.

                        TITLE V--VOUCHER REFORM

     SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR RENTAL VOUCHERS 
                   FOR RELOCATION OF WITNESSES AND VICTIMS OF 
                   CRIME.

       Section 8(o)(16) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(16)) is amended--
       (1) in subparagraph (A), by striking ``Of amounts made 
     available for assistance under this subsection'' and 
     inserting ``Of the amount made available under subparagraph 
     (C)'';
       (2) in subparagraph (B), by striking ``Of amounts made 
     available for assistance under this section'' and inserting 
     ``Of the amount made available under subparagraph (C)''; and
       (3) by adding at the end the following:
       ``(C) Authorization of appropriations.--In addition to 
     amounts made available to carry out this section for each 
     fiscal year, there is authorized to be appropriated to carry 
     out this paragraph $25,000,000 for each fiscal year.''.

     SEC. 502. REVISIONS TO THE LEASE ADDENDUM.

       Section 8(o)(7)(F) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(7)(F)) is amended striking the period at 
     the end and inserting the following: ``, except that--
       ``(i) the provisions of any such addendum shall supplement 
     any existing standard rental agreement to the extent that the 
     addendum does not modify, nullify, or in any way materially 
     alter any material provision of the rental agreement; and
       ``(ii) a provision of the addendum shall be nullified only 
     to extent that the provision conflicts with applicable State 
     or local law.''.

     SEC. 503. REPORT REGARDING HOUSING VOUCHER PROGRAM.

       (a) In General.--The Secretary shall publish in the Federal 
     Register a notice soliciting comments and recommendations 
     regarding the means by which the voucher program under 
     section 8(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(o)) may be changed and enhanced to promote 
     increased participation by private rental housing owners.
       (b) Report.--Not later than 6 months after the effective 
     date of this Act, the Secretary shall submit to the 
     Committees a report on the results of the solicitation under 
     subsection (a), which shall include a summary and analysis of 
     the recommendations received, especially recommendations 
     regarding legislative and administrative changes to the 
     program described in subsection (a).

     SEC. 504. CONDUCTING QUALITY STANDARD INSPECTIONS ON A 
                   PROPERTY BASIS RATHER THAN A UNIT BASIS.

       Section 8(o)(8) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(8)) is amended--
       (1) in the paragraph heading, by inserting ``and 
     properties'' after ``units'';
       (2) in subparagraph (A)--
       (A) by striking ``Except as provided'' and inserting the 
     following:
       ``(i) Inspection requirement.--Except as provided''; and
       (B) by adding at the end the following:
       ``(ii) Inspection and certification on a property-wide 
     basis.--

       ``(I) In general.--For purposes of this subparagraph, each 
     owner shall have the option

[[Page S7879]]

     of having the property of the owner inspected and certified 
     on a property-wide basis, subject to the inspection 
     guidelines set forth in subparagraphs (C) and (D).
       ``(II) Certification.--Owners of properties electing a 
     property-wide inspection and not currently receiving tenant-
     based assistance for any dwelling unit in those properties 
     may elect a property-wide certification by having each 
     dwelling unit that is to be made available for tenant-based 
     assistance inspected before any housing assistance payments 
     are made. Any owner participating in the voucher program 
     under this subsection as of the effective date of Local 
     Housing Opportunities Act shall have the option of electing 
     property-wide certification by sending written notice to the 
     appropriate administering agency. Any property that is 
     inspected and certified on a property-wide basis shall not be 
     required to have units in the property inspected individually 
     in conjunction with each new rental agreement.'';

       (3) in subparagraph (C)--
       (A) in the first sentence--
       (i) by inserting ``or property'' after ``dwelling unit''; 
     and
       (ii) by inserting ``or property'' after ``the unit''; and
       (B) in the second sentence, by inserting ``or properties'' 
     after ``dwelling units''; and
       (4) in subparagraph (D), in the first sentence--
       (A) by inserting ``or property'' after ``dwelling unit'';
       (B) by inserting ``or property'' after ``payments contract 
     for the unit''; and
       (C) by inserting ``or property'' after ``whether the 
     unit''.

                    TITLE VI--PROGRAM MODERNIZATION

     SEC. 601. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

       (a) Reauthorization.--Section 11 of the Housing Opportunity 
     Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
     amended by striking subsection (p) and inserting the 
     following:
       ``(p) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     fiscal year 2001 and such sums as may be necessary for each 
     of fiscal years 2002 and 2003.''.
       (b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing 
     Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
     note) is amended by inserting before the period at the end 
     the following: ``, which may include reimbursing an 
     organization, consortium, or affiliate, upon approval of any 
     required environmental review, for nongrant amounts of the 
     organization, consortium, or affiliate advanced before such 
     review to acquire land''.
       (c) Deadline for Recapture of Funds.--Section 11 of the 
     Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
     12805 note) is amended--
       (1) in subsection (i)(5)--
       (A) by striking ``if the organization or consortia has not 
     used any grant amounts'' and inserting ``the Secretary shall 
     recapture any grant amounts provided to the organization or 
     consortia that are not used'';
       (B) by striking ``(or,'' and inserting ``, except that such 
     period shall be 36 months''; and
       (C) by striking ``within 36 months), the Secretary shall 
     recapture such unused amounts'' and inserting ``and in the 
     case of a grant amounts provided to a local affiliate of the 
     organization or consortia that is developing 5 or more 
     dwellings in connection with such grant amounts''; and
       (2) in subsection (j), by inserting ``and grant amounts 
     provided to a local affiliate of the organization or 
     consortia that is developing 5 or more dwellings in 
     connection with such grant amounts'' before the period at the 
     end.
       (d) Technical Correction.--Section 11(e) of the Housing 
     Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
     note) is amended by striking ``consoria'' and inserting 
     ``consortia''.

     SEC. 602. LOCAL CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT 
                   AND AFFORDABLE HOUSING.

       Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 
     9816 note) is amended--
       (1) in subsection (a), by inserting ``National Association 
     of Housing Partnerships,'' after ``Humanity,''; and
       (2) in subsection (e), by striking ``$25,000,000'' and all 
     that follows before the period and inserting ``to carry out 
     this section, $40,000,000 for each of fiscal years 2001 
     through 2003''.

     SEC. 603. WORK REQUIREMENT FOR PUBLIC HOUSING RESIDENTS: 
                   COORDINATION OF FEDERAL HOUSING ASSISTANCE WITH 
                   STATE WELFARE REFORM WORK PROGRAMS.

       (a) In General.--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. 36. WORK REQUIREMENT.

       ``(a) In General.--Each family residing in public housing, 
     shall comply with the requirements of section 407 of the 
     Social Security Act (42 U.S.C. 607) in the same manner and to 
     the same extent as a family receiving assistance under a 
     State program funded under part A of title IV of that Act (42 
     U.S.C. 601 et seq.).
       ``(b) Work Requirements.--
       ``(1) Annual determinations.--
       ``(A) Requirement.--For each family residing in public 
     housing that is subject to the requirement under subsection 
     (a), the public housing agency shall, 30 days before the 
     expiration of each lease term of the family under section 
     6(l)(1), review and determine the compliance of the family 
     with the requirement under subsection (a) of this subsection.
       ``(B) Due process.--Each determination under subparagraph 
     (A) shall be made in accordance with the principles of due 
     process and on a nondiscriminatory basis.
       ``(C) Noncompliance.-- If a public housing agency 
     determines that a family subject to the requirement under 
     subsection (a) has not complied with the requirement, the 
     agency--
       ``(i) shall notify the family--

       ``(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 family enters into an agreement 
     under clause (ii) of this subparagraph, the family's lease 
     will not be renewed; and

       ``(ii) may not renew or extend the family'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 family providing for the family to 
     cure any noncompliance with the requirement under paragraph 
     (1), by participating in an economic self-sufficiency program 
     (as defined in section 12(g)) for or contributing to 
     community service as many additional hours as the family 
     needs to comply in the aggregate with such requirement over 
     the 12-month term of the lease.
       ``(2) 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 family who was subject to the requirement under 
     subsection (a) and failed to comply with the requirement.
       ``(3) 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.''.
       (b) Conforming Amendment.--Section 12(c) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437j(c)) is repealed.

     SEC. 604. SIMPLIFIED FHA DOWNPAYMENT CALCULATION.

       Section 203(b) of the National Housing Act (12 U.S.C. 
     1709(b)) is amended--
       (1) in paragraph (2), by striking subparagraph (B) and all 
     that follows through ``applicability of this requirement.'' 
     and inserting the following:
       ``(B) not to exceed an amount equal to--
       ``(i) 98.75 percent of the appraised value of the property, 
     if such value is equal to or less than $50,000;
       ``(ii) 97.65 percent of the appraised value of the 
     property, if such value is in excess of $50,000 but not in 
     excess of $125,000;
       ``(iii) 97.15 percent of the appraised value of the 
     property, if such value is in excess of $125,000; or
       ``(iv) notwithstanding clauses (ii) and (iii), 97.75 
     percent of the appraised value of the property, if such value 
     is in excess of $50,000 and the property is in a State for 
     which the average closing cost exceeds 2.10 percent of the 
     average, for the State, of the sales price of properties 
     located in the State for which mortgages have been executed, 
     as determined by the Secretary, except that, in this clause, 
     the term `average closing cost' means, with respect to a 
     State, the average, for mortgages executed for properties in 
     the State, of the total amounts (as determined by the 
     Secretary) of initial service charges, appraisal, inspection, 
     and other fees and costs (as the Secretary shall approve) 
     that are paid in connection with such mortgages.''; and
       (2) by striking paragraph (10).

     SEC. 605. FLEXIBLE USE OF CDBG FUNDS.

       Section 105(a)(23) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5305(a)(23)) is amended by striking 
     ``housing units acquired'' and all that follows before the 
     semicolon and inserting the following: ``housing (A) acquired 
     through tax foreclosure proceedings brought by a unit of 
     State or local government, or (B) placed under the 
     supervision of a court for the purpose of remedying 
     conditions dangerous to life, health, and safety, in order to 
     prevent the abandonment and deterioration of such housing 
     primarily in low- and moderate-income neighborhoods''.

     SEC. 606. USE OF SECTION 8 ASSISTANCE IN GRANDFAMILY HOUSING 
                   ASSISTED WITH HOME FUNDS.

       Section 215(a) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12745(a)) is amended by adding at the 
     end the following:
       ``(6) Waiver of qualifying rent.--
       ``(A) In general.--For the purpose of providing affordable 
     housing appropriate for families described in subparagraph 
     (B), the Secretary may, upon the application of the project 
     owner, waive the applicability of paragraph (1)(A) with 
     respect to a dwelling unit if--
       ``(i) the unit is occupied by such a family, on whose 
     behalf tenant-based assistance is provided under section 8 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437f);
       ``(ii) the rent for the unit is not greater than the 
     existing fair market rent for comparable units in the area, 
     as established by the Secretary under section 8 of the United 
     States Housing Act of 1937; and
       ``(iii) the Secretary determines that the waiver, together 
     with waivers under this paragraph for other dwelling units in 
     the project, will result in the use of amounts described in 
     clause (iii) in an effective manner that will improve the 
     provision of affordable housing for such families.

[[Page S7880]]

       ``(B) Eligible families.--A family described in this 
     subparagraph is a family that consists of at least 1 elderly 
     person (who is the head of household) and 1 or more of such 
     person's grandchildren, great grandchildren, great nieces, 
     great nephews, or great great grandchildren (as defined by 
     the Secretary), but does not include any parent of such 
     grandchildren, great grandchildren, great nieces, great 
     nephews, or great great grandchildren. Such term includes any 
     such grandchildren, great grandchildren, great nieces, great 
     nephews, or great great grandchildren who have been legally 
     adopted by such elderly person.''.

     SEC. 607. SECTION 8 HOMEOWNERSHIP OPTION DOWNPAYMENT 
                   ASSISTANCE.

       (a) Amendments.--Section 8(y) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(y)) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6) the following:
       ``(7) Downpayment assistance.--
       ``(A) Authority.--A public housing agency may, in lieu of 
     providing monthly assistance payments under this subsection 
     on behalf of a family eligible for such assistance and at the 
     discretion of the public housing agency, provide assistance 
     for the family in the form of a single grant to be used only 
     as a contribution toward the downpayment required in 
     connection with the purchase of a dwelling for fiscal year 
     2001 and each fiscal year thereafter to the extent provided 
     in advance in appropriations Acts.
       ``(B) Amount.--The amount of a downpayment grant on behalf 
     of an assisted family may not exceed the amount that is equal 
     to the sum of the assistance payments that would be made 
     during the first year of assistance on behalf of the family, 
     based upon the income of the family at the time the grant is 
     to be made.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect immediately after the amendments made by 
     section 555(c) of the Quality Housing and Work Responsibility 
     Act of 1998 take effect pursuant to such section.

     SEC. 608. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT 
                   CORPORATION.

       Section 608(a)(1) of the Neighborhood Reinvestment 
     Corporation Act (42 U.S.C. 8107(a)(1)) is amended by striking 
     the first sentence and inserting the following: ``There is 
     authorized to be appropriated to the corporation to carry out 
     this title $90,000,000 for fiscal year 2001, $95,000,000 for 
     fiscal year 2002, and $95,000,000 for fiscal year 2003.''.

                  TITLE VII--STATE HOUSING BLOCK GRANT

     SEC. 701. STATE CONTROL OF PUBLIC AND ASSISTED HOUSING FUNDS.

       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. 37. STATE HOUSING BLOCK GRANT.

       ``(a) Purpose.--The purpose of this section is to create 
     options for States and to provide maximum freedom to States 
     to determine the manner in which to implement assisted 
     housing reforms.
       ``(b) Authority.--Notwithstanding any other provision of 
     law, a State may assume control of the Federal housing 
     assistance funds available to residents in that State 
     following the execution of a performance agreement with the 
     Secretary in accordance with this section.
       ``(c) Performance Agreement.--
       ``(1) In general.--A State may, at its option, execute a 
     performance agreement with the Secretary under which the 
     provisions of law described in subsection (d) shall not apply 
     to such State, except as otherwise provided in this section.
       ``(2) Approval of performance agreement.--A performance 
     agreement submitted to the Secretary under this section shall 
     be approved by the Secretary unless the Secretary makes a 
     written determination, within 60 days after receiving the 
     performance agreement, that the performance agreement is in 
     violation of the provisions of this section.
       ``(3) Terms of performance agreement.--Each performance 
     agreement executed pursuant to this section shall include 
     each of the following provisions:
       ``(A) Term.--A statement that the term of the performance 
     agreement shall be 5 years.
       ``(B) Application of program requirements.--A statement 
     that no program requirements of any program included by the 
     State in the performance agreement shall apply, except as 
     otherwise provided in this Act.
       ``(C) List.--A list provided by the State of the programs 
     that the State would like to include in the performance 
     agreement.
       ``(D) Use of funds to improve housing opportunities for 
     low-income individuals and families.--Include a 5-year plan 
     describing the manner in which the State intends to combine 
     and use the funds for programs included in the performance 
     agreement to advance the low-income housing priorities of the 
     State, improve the quality of low-income housing, reduce 
     homelessness, reduce crime, and encourage self-sufficiency by 
     achieving the performance goals.
       ``(E) Performance goals.--
       ``(i) In general.--A statement of performance goals 
     established by the State for the 5-year term of the 
     performance agreement that, at a minimum measures--

       ``(I) improvement in housing conditions for low-income 
     individuals and families;
       ``(II) the increase in the number of assisted units that 
     pass housing quality inspections;
       ``(III) the increase in economic opportunity and self-
     sufficiency and increases the number of residents that obtain 
     employment;
       ``(IV) the reduction in crime and assistance to victims of 
     crime;
       ``(V) the reduction in homelessness and the level of 
     poverty;
       ``(VI) the cost of assisted housing units provided;
       ``(VII) the level of assistance provided to people with 
     disabilities and to the elderly;
       ``(VIII) the success in maintaining and increasing the 
     stock of affordable housing and increasing home ownership.
       ``(IX) sets numerical goals to attain for each performance 
     goal by the end of the performance agreement.

       ``(ii) Additional indicators of performance.--A State may 
     identify in the performance agreement any indicators of 
     performance such as reduced cost.
       ``(F) Fiscal responsibilities.--An assurance that the State 
     will use fiscal control and fund accounting procedures that 
     will ensure proper disbursement of, and accounting for, 
     Federal funds paid to the State or community under this Act. 
     Recipients will use Generally Accepted Accounting Principles 
     (GAAP).
       ``(G) Civil rights.--An assurance that the State will meet 
     the requirements of applicable Federal civil rights laws 
     including section 25(k).
       ``(H) State financial participation.--An assurance that the 
     State will not significantly reduce the level of spending of 
     State funds for housing during the term of the performance 
     agreement.
       ``(I) Annual report.--An assurance that not later than 1 
     year after the execution of the performance agreement, and 
     annually thereafter, each State shall disseminate widely to 
     the general public, submit to the Secretary, and post on the 
     Internet, a report that includes low-income housing 
     performance data and a detailed description of the manner in 
     which the State has used Federal funds to provide low-income 
     housing assistance to meet the terms of the performance 
     agreement.
       ``(4) Amendment to performance agreement.--A State may 
     submit an amendment to the performance agreement to the 
     Secretary under the following circumstances:
       ``(A) Reduce scope of performance agreement.--Not later 
     than 1 year after the execution of the performance agreement, 
     a State may amend the performance agreement through a request 
     to withdraw a program from such agreement. Upon approval by 
     the Secretary of the amendment, the requirements of existing 
     law shall apply for any program withdrawn from the 
     performance agreement.
       ``(B) Expand scope of performance agreement.--Not later 
     than 1 year after the execution of the performance agreement, 
     a State may amend its performance agreement to include 
     additional programs and performance indicators for which it 
     will be held accountable.
       ``(d) Eligible Programs.--
       ``(1) In general.--The provisions of law referred to in 
     subsection (c), are--
       ``(A) the voucher program for rental assistance under 
     section 8(o) of the United States Housing Act of 1937;
       ``(B) the programs for project-based assistance under 
     section 8 of the United States Housing Act of 1937;
       ``(C) the program for housing for the elderly under section 
     202 of the Housing Act of 1959;
       ``(D) the program for housing for persons with disabilities 
     under section 811 of the Cranston-Gonzales National 
     Affordable Housing Act; and
       ``(2) Allocation amounts.--A State may choose to combine 
     funds from any or all the programs described in paragraph (1) 
     without regard to the program requirements of such 
     provisions, except as otherwise provided in this Act.
       ``(3) Uses of funds.--Funds made available under this 
     section to a State shall be used for any housing purpose 
     other than those prohibited by State law of the participating 
     State.
       ``(e) Within-State Distribution of Funds.--The distribution 
     of funds from programs included in the performance agreement 
     from a State to a local housing agency within the State shall 
     be determined by the State legislature and the Governor of 
     the State. In a State in which the State constitution or 
     State law designates another individual, entity, or agency to 
     be responsible for housing, such other individual, entity, or 
     agency shall work in consultation with the Governor and State 
     legislature to determine the local distribution of funds.
       ``(f) Set-Aside for State Administrative Expenditures.--A 
     State may use not more than 3 percent of the total amount of 
     funds allocated to such State under the programs included in 
     the performance agreement for administrative purposes.
       ``(g) Level of Block Grant.--
       ``(1) In general.--During the initial 5 years following 
     execution of the performance agreement, a participating State 
     shall receive the highest level of funding for the 3 years 
     prior to the first year of the performance agreement in each 
     program included in the block grant. This level will be 
     adjusted each year by multiplying the prior year's amount by 
     the cost-of-living adjustment determined under section 
     1(f)(3) of the Internal Revenue Code of 1986.
       ``(2) Formula.--Six months after the effective date of the 
     Local Housing Opportunities Act, the Secretary shall submit 
     to Congress

[[Page S7881]]

     recommendations for a block grant formula that reflects the 
     relative low-income level and affordable housing needs of 
     each State.
       ``(h) Performance Review.--
       ``(1) In general.--If at the end of the 5-year term of the 
     performance agreement a State has failed to meet at least 80 
     percent of the performance goals submitted in the performance 
     agreement, the Secretary shall terminate the performance 
     agreement and the State shall be required to comply with the 
     program requirement, in effect at the time of termination, of 
     each program included in the performance agreement.
       ``(2) Renewal.--A State that seeks to renew its performance 
     agreement shall notify the Secretary of its renewal request 
     not less that 6 months prior to the end of the term of the 
     performance agreement. A State that has met at least 80 
     percent of its performance goals submitted in the performance 
     agreement at the end of the 5-year term may reapply to the 
     Secretary to renew its performance agreement for an 
     additional 5-year period. Upon the completion of the 5-year 
     term of the performance agreement or as soon thereafter as 
     the State submits data required under the agreement, the 
     Secretary shall renew, for an additional 5-year term, the 
     performance agreement of any State or community that has met 
     at least 80 percent of its performance goals.
       ``(i) Performance Reward Fund.--To reward States that make 
     significant progress in meeting performance goals, the 
     Secretary shall annually set aside sufficient funds to grant 
     a reward of up to 5 percent of the funds allocated to 
     participating States.
       ``(j) Definitions.--In this section:
       ``(1) Community.--The term `community' means any local 
     governing jurisdiction within a State.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(3) State.--The term `State' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     Guam, the United States Virgin Islands, the Commonwealth of 
     the Northern Mariana Islands, and American Samoa.''.

                 TITLE VIII--PRIVATE SECTOR INCENTIVES

     SEC. 801. SENSE OF CONGRESS REGARDING LOW-INCOME HOUSING TAX 
                   CREDIT STATE CEILINGS AND PRIVATE ACTIVITY BOND 
                   CAPS.

       (a) Findings.--Congress finds that--
       (1) the low-income housing tax credit and private activity 
     bonds have been valuable resources in the effort to increase 
     affordable housing;
       (2) the low-income housing tax credit and private activity 
     bonds effectively utilize the ability of the States to 
     deliver resources to the areas of greatest need within their 
     jurisdictions; and
       (3) the value of the low-income housing tax credit and the 
     private activity bonds have been eroded by inflation.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the State ceiling for the low-income housing tax credit 
     should be increased by 40 percent in the year 2000, and the 
     level for the State ceiling should be adjusted annually to 
     account for increases in the cost of living; and
       (2) the private activity bond cap should be increased by 50 
     percent in the year 2000, and the value of the cap should be 
     adjusted annually to account for increases in the cost of 
     living.

                         TITLE IX--ENFORCEMENT

     SEC. 901. PROHIBITION ON USE OF APPROPRIATED FUNDS FOR 
                   LOBBYING BY THE DEPARTMENT.

       (a) In General.--Subchapter III of chapter 13 of title 31, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1354. Prohibition on lobbying by the Department of 
       Housing and Urban Development

       ``(a) Prohibition.--Except as provided in subsection (b), 
     unless such activity has been specifically authorized by an 
     Act of Congress and notwithstanding any other provision of 
     law, no funds made available to the Department of Housing and 
     Urban Development by appropriation shall be used by such 
     agency for any activity (including the preparation, 
     publication, distribution, or use of any kit, pamphlet, 
     booklet, public presentation, news release, radio, 
     television, or film presentation, video, or other written or 
     oral statement) that in any way tends to promote public 
     support or opposition to any legislative proposal (including 
     the confirmation of the nomination of a public official or 
     the ratification of a treaty) on which congressional action 
     is not complete.
       ``(b) Exceptions.--
       ``(1) President and vice president.--Subsection (a) shall 
     not apply to the President or Vice President.
       ``(2) Congressional communications.--Subsection (a) shall 
     not be construed to prevent any officer or employee of the 
     Department of Housing and Urban Development from--
       ``(A) communicating directly to a Member of Congress (or to 
     any staff of a Member or committee of Congress) a request for 
     legislation or appropriations that such officer or employee 
     deems necessary for the efficient conduct of the public 
     business; or
       ``(B) responding to a request for information or technical 
     assistance made by a Member of Congress (or by any staff of a 
     Member or committee of Congress).
       ``(3) Public communications on views of president.--
       ``(A) In general.--Subsection (a) shall not be construed to 
     prevent any Federal agency official whose appointment is 
     confirmed by the Senate, any official in the Executive Office 
     of the President directly appointed by the President or Vice 
     President, or the head of any Federal agency described in 
     subsection (e)(2), from communicating with the public, 
     through radio, television, or other public communication 
     media, on the views of the President for or against any 
     pending legislative proposal.
       ``(B) Nondelegation.--Subparagraph (A) does not permit any 
     Federal agency official described in that subparagraph to 
     delegate to another person the authority to make 
     communications subject to the exemption provided by that 
     subparagraph.
       ``(c) Comptroller General.--
       ``(1) Assistance of inspector general.--In exercising the 
     authority provided in section 712, as applied to this 
     section, the Comptroller General may obtain, without 
     reimbursement from the Comptroller General, the assistance of 
     the Inspector General within the Department of Housing and 
     Urban Development when any activity prohibited by subsection 
     (a) of this section is under review.
       ``(2) Evaluation.--One year after the date of enactment of 
     this section, the Comptroller General shall report to the 
     Committee on Banking and Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate on the implementation of this 
     section.
       ``(3) Annual report.--The Comptroller General shall, in the 
     annual report under section 719(a), include summaries of 
     investigations undertaken by the Comptroller General with 
     respect to subsection (a).
       ``(d) Penalties and Injunctions.--
       ``(1) Penalties.--
       ``(A) In general.--The Attorney General may bring a civil 
     action in the appropriate district court of the United States 
     against any person who engages in conduct constituting an 
     offense under this section, whether such offense is due to 
     personal participation in any activity prohibited in 
     subsection (a) or improper delegation to another person the 
     authority to make exempt communications in violation of 
     subsection (b)(3), and, upon proof of such conduct by a 
     preponderance of the evidence, such person shall be subject 
     to a civil penalty of not less than $5,000 and not more than 
     $10,000 for each violation.
       ``(B) Other remedies not precluded.--The imposition of a 
     civil penalty under this subsection does not preclude any 
     other criminal or civil statutory, common law, or 
     administrative remedy, which is available by law to the 
     United States or any other person.
       ``(2) Injunctions.--
       ``(A) In general.--If the Attorney General has reason to 
     believe that a person is engaging in conduct constituting an 
     offense under this section, whether such offense is due to 
     personal participation in any activity prohibited in 
     subsection (a) or improper delegation to another person the 
     authority to make exempt communications in violation of 
     subsection (b)(3)--
       ``(i) the Attorney General may petition an appropriate 
     district court of the United States for an order prohibiting 
     that person from engaging in such conduct; and
       ``(ii) the court may issue an order prohibiting that person 
     from engaging in such conduct if the court finds that the 
     conduct constitutes such an offense.
       ``(B) Other remedies not precluded.--The filing of a 
     petition under this section does not preclude any other 
     remedy which is available by law to the United States or any 
     other person.
       ``(e) Definition.--In this section, the term `Federal 
     agency' means--
       ``(1) any executive agency, within the meaning of section 
     105 of title 5; and
       ``(2) any private corporation created by a law of the 
     United States for which the Congress appropriates funds.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 13 of title 31, United States Code, is amended by 
     inserting after the item relating to section 1353 the 
     following:

``1354. Prohibition on lobbying by the Department of Housing and Urban 
              Development.''.

       (c) Applicability.--The amendments made by this section 
     shall apply to the use of funds after the effective date of 
     this Act, including funds appropriated or received on or 
     before that date.

     SEC. 902. REGULATIONS.

       Not later than 6 months after the date of enactment of this 
     Act, the Secretary shall issue such regulations as may be 
     necessary to carry out this Act and the amendments made by 
     this Act.
                                 ______