[Congressional Record (Bound Edition), Volume 149 (2003), Part 23]
[Senate]
[Pages 31301-31310]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2212. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 2799, making appropriations for the Departments of 
Commerce, Justice, and State, the Judiciary, and related agencies for 
the

[[Page 31302]]

fiscal year ending September 30, 2004, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 54, beginning on line 1, strike all through line 7.
                                 ______
                                 
  SA 2213. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 2799, making appropriations for the Departments of 
Commerce, Justice, and State, the Judiciary, and related agencies for 
the fiscal year ending September 30, 2004, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 30, line 10, strike ``$36,994,000'' and insert 
     ``$41,994,000''.
                                 ______
                                 
  SA 2214. Mr. ENSIGN (for Mr. Voinovich (for himself and Mr. Carper)) 
proposed an amendment to the bill S. 610, to amend the provisions of 
title 5, United States Code, to provide for workforce flexibilities and 
certain Federal personnel provisions relating to the National 
Aeronautics and Space Administration, and for other purposes; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``NASA Flexibility Act of 
     2003''.

     SEC. 2. COMPENSATION FOR CERTAIN EXCEPTED PERSONNEL.

       (a) In General.--Subparagraph (A) of section 203(c)(2) of 
     the National Aeronautics and Space Act of 1958 (42 U.S.C. 
     2473(c)(2)(A)) is amended by striking ``the highest rate of 
     grade 18 of the General Schedule of the Classification Act of 
     1949, as amended,'' and inserting ``the rate of basic pay 
     payable for level III of the Executive Schedule,''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the first day of the first pay period 
     beginning on or after the date of enactment of this Act.

     SEC. 3. WORKFORCE AUTHORITIES.

       (a) In General.--Subpart I of part III of title 5, United 
     States Code, is amended by inserting after chapter 97, as 
     added by section 841(a)(2) of the Homeland Security Act of 
     2002 (Public Law 107-296; 116 Stat. 2229), the following:

      ``CHAPTER 98--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

``Sec.
``9801. Definitions.
``9802. Planning, notification, and reporting requirements.
``9803. Restrictions.
``9804. Recruitment, redesignation, and relocation bonuses.
``9805. Retention bonuses.
``9806. Term appointments.
``9807. Pay authority for critical positions.
``9808. Assignments of intergovernmental personnel.
``9809. Science and technology scholarship program.
``9810. Distinguished scholar appointment authority.
``9811. Travel and transportation expenses of certain new appointees
``9812. Annual leave enhancements.
``9813. Limited appointments to Senior Executive Service positions.
``9814. Qualifications pay.
``9815. Reporting requirement.

     ``Sec. 9801. Definitions

       ``For purposes of this chapter--
       ``(1) the term `Administration' means the National 
     Aeronautics and Space Administration;
       ``(2) the term `Administrator' means the Administrator of 
     the National Aeronautics and Space Administration;
       ``(3) the term `critical need' means a specific and 
     important safety, management, engineering, science, research, 
     or operations requirement of the Administration's mission 
     that the Administration is unable to fulfill because the 
     Administration lacks the appropriate employees because--
       ``(A) of the inability to fill positions; or
       ``(B) employees do not possess the requisite skills;
       ``(4) the term `employee' means an individual employed in 
     or under the Administration;
       ``(5) the term `workforce plan' means the plan required 
     under section 9802(a);
       ``(6) the term `appropriate committees of Congress' means--
       ``(A) the Committees on Government Reform, Science, and 
     Appropriations of the House of Representatives; and
       ``(B) the Committees on Governmental Affairs, Commerce, 
     Science, and Transportation, and Appropriations of the 
     Senate;
       ``(7) the term `redesignation bonus' means a bonus under 
     section 9804 paid to an individual described in subsection 
     (a)(2) thereof;
       ``(8) the term `supervisor' has the meaning given such term 
     by section 7103(a)(10); and
       ``(9) the term `management official' has the meaning given 
     such term by section 7103(a)(11).

     ``Sec. 9802. Planning, notification, and reporting 
       requirements

       ``(a) Not later than 90 days before exercising any of the 
     workforce authorities made available under this chapter, the 
     Administrator shall submit a written plan to the appropriate 
     committees of Congress. Such plan shall be approved by the 
     Office of Personnel Management.
       ``(b) A workforce plan shall include a description of--
       ``(1) each critical need of the Administration and the 
     criteria used in the identification of that need;
       ``(2)(A) the functions, approximate number, and classes or 
     other categories of positions or employees that--
       ``(i) address critical needs; and
       ``(ii) would be eligible for each authority proposed to be 
     exercised under this chapter; and
       ``(B) how the exercise of those authorities with respect to 
     the eligible positions or employees involved would address 
     each critical need identified under paragraph (1);
       ``(3)(A) any critical need identified under paragraph (1) 
     which would not be addressed by the authorities made 
     available under this chapter; and
       ``(B) the reasons why those needs would not be so 
     addressed;
       ``(4) the specific criteria to be used in determining which 
     individuals may receive the benefits described under sections 
     9804 and 9805 (including the criteria for granting bonuses in 
     the absence of a critical need), and how the level of those 
     benefits will be determined;
       ``(5) the safeguards or other measures that will be applied 
     to ensure that this chapter is carried out in a manner 
     consistent with merit system principles;
       ``(6) the means by which employees will be afforded the 
     notification required under subsections (c) and (d)(1)(B);
       ``(7) the methods that will be used to determine if the 
     authorities exercised under this chapter have successfully 
     addressed each critical need identified under paragraph (1);
       ``(8)(A) the recruitment methods used by the Administration 
     before the enactment of this chapter to recruit highly 
     qualified individuals; and
       ``(B) the changes the Administration will implement after 
     the enactment of this chapter in order to improve its 
     recruitment of highly qualified individuals, including how it 
     intends to use--
       ``(i) nongovernmental recruitment or placement agencies; 
     and
       ``(ii) Internet technologies; and
       ``(9) any workforce-related reforms required to resolve the 
     findings and recommendations of the Columbia Accident 
     Investigation Board, the extent to which those 
     recommendations were accepted, and, if necessary, the reasons 
     why any of those recommendations were not accepted.
       ``(c) Not later than 60 days before first exercising any of 
     the workforce authorities made available under this chapter, 
     the Administrator shall provide to all employees the 
     workforce plan and any additional information which the 
     Administrator considers appropriate.
       ``(d)(1)(A) The Administrator may from time to time modify 
     the workforce plan. Any modification to the workforce plan 
     shall be submitted to the Office of Personnel Management for 
     approval by the Office before the modification may be 
     implemented.
       ``(B) Not later than 60 days before implementing any such 
     modifications, the Administrator shall provide an 
     appropriately modified plan to all employees of the 
     Administration and to the appropriate committees of Congress.
       ``(2) Any reference in this chapter or any other provision 
     of law to the workforce plan shall be considered to include 
     any modification made in accordance with this subsection.
       ``(e) Before submitting any written plan under subsection 
     (a) (or modification under subsection (d)) to the Office of 
     Personnel Management, the Administrator shall--
       ``(1) provide to each employee representative representing 
     any employees who might be affected by such plan (or 
     modification) a copy of the proposed plan (or modification);
       ``(2) give each representative 30 calendar days (unless 
     extraordinary circumstances require earlier action) to review 
     and make recommendations with respect to the proposed plan 
     (or modification); and
       ``(3) give any recommendations received from any such 
     representatives under paragraph (2) full and fair 
     consideration in deciding whether or how to proceed with 
     respect to the proposed plan (or modification).
       ``(f) None of the workforce authorities made available 
     under this chapter may be exercised in a manner inconsistent 
     with the workforce plan.
       ``(g) Whenever the Administration submits its performance 
     plan under section 1115 of title 31 to the Office of 
     Management and Budget for any year, the Administration shall 
     at the same time submit a copy of such plan to the 
     appropriate committees of Congress.
       ``(h) Not later than 6 years after the date of enactment of 
     this chapter, the Administrator shall submit to the 
     appropriate committees of Congress an evaluation and analysis 
     of the actions taken by the Administration under this 
     chapter, including--
       ``(1) an evaluation, using the methods described in 
     subsection (b)(7), of whether the authorities exercised under 
     this chapter successfully addressed each critical need 
     identified under subsection (b)(1);

[[Page 31303]]

       ``(2) to the extent that they did not, an explanation of 
     the reasons why any critical need (apart from the ones under 
     subsection (b)(3)) was not successfully addressed; and
       ``(3) recommendations for how the Administration could 
     address any remaining critical need and could prevent those 
     that have been addressed from recurring.
       ``(i) The budget request for the Administration for the 
     first fiscal year beginning after the date of enactment of 
     this chapter and for each fiscal year thereafter shall 
     include a statement of the total amount of appropriations 
     requested for such fiscal year to carry out this chapter.

     ``Sec. 9803. Restrictions

       ``(a) None of the workforce authorities made available 
     under this chapter may be exercised with respect to any 
     officer who is appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(b) Unless specifically stated otherwise, all workforce 
     authorities made available under this chapter shall be 
     subject to section 5307.
       ``(c)(1) None of the workforce authorities made available 
     under section 9804, 9805, 9806, 9807, 9809, 9812, 9813, 9814, 
     or 9815 may be exercised with respect to a political 
     appointee.
       ``(2) For purposes of this subsection, the term `political 
     appointee' means an employee who holds--
       ``(A) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character; 
     or
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined in section 
     3132(a)).

     ``Sec. 9804. Recruitment, redesignation, and relocation 
       bonuses

       ``(a) Notwithstanding section 5753, the Administrator may 
     pay a bonus to an individual, in accordance with the 
     workforce plan and subject to the limitations in this 
     section, if--
       ``(1) the Administrator determines that the Administration 
     would be likely, in the absence of a bonus, to encounter 
     difficulty in filling a position; and
       ``(2) the individual--
       ``(A) is newly appointed as an employee of the Federal 
     Government;
       ``(B) is currently employed by the Federal Government and 
     is newly appointed to another position in the same geographic 
     area; or
       ``(C) is currently employed by the Federal Government and 
     is required to relocate to a different geographic area to 
     accept a position with the Administration.
       ``(b) If the position is described as addressing a critical 
     need in the workforce plan under section 9802(b)(2)(A), the 
     amount of a bonus may not exceed--
       ``(1) 50 percent of the employee's annual rate of basic pay 
     (including comparability payments under sections 5304 and 
     5304a) as of the beginning of the service period multiplied 
     by the service period specified under subsection 
     (d)(1)(B)(i); or
       ``(2) 100 percent of the employee's annual rate of basic 
     pay (including comparability payments under sections 5304 and 
     5304a) as of the beginning of the service period.
       ``(c) If the position is not described as addressing a 
     critical need in the workforce plan under section 
     9802(b)(2)(A), the amount of a bonus may not exceed 25 
     percent of the employee's annual rate of basic pay (excluding 
     comparability payments under sections 5304 and 5304a) as of 
     the beginning of the service period.
       ``(d)(1)(A) Payment of a bonus under this section shall be 
     contingent upon the individual entering into a service 
     agreement with the Administration.
       ``(B) At a minimum, the service agreement shall include--
       ``(i) the required service period;
       ``(ii) the method of payment, including a payment schedule, 
     which may include a lump-sum payment, installment payments, 
     or a combination thereof;
       ``(iii) the amount of the bonus and the basis for 
     calculating that amount; and
       ``(iv) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed, and the effect of the termination.
       ``(2) For purposes of determinations under subsections 
     (b)(1) and (c)(1), the employee's service period shall be 
     expressed as the number equal to the full years and twelfth 
     parts thereof, rounding the fractional part of a month to the 
     nearest twelfth part of a year. The service period may not be 
     less than 6 months and may not exceed 4 years.
       ``(3) A bonus under this section may not be considered to 
     be part of the basic pay of an employee.
       ``(e) Before paying a bonus under this section, the 
     Administration shall establish a plan for paying recruitment, 
     redesignation, and relocation bonuses, subject to approval by 
     the Office of Personnel Management.
       ``(f) No more than 25 percent of the total amount in 
     bonuses awarded under subsection (a) in any year may be 
     awarded to supervisors or management officials.

     ``Sec. 9805. Retention bonuses

       ``(a) Notwithstanding section 5754, the Administrator may 
     pay a bonus to an employee, in accordance with the workforce 
     plan and subject to the limitations in this section, if the 
     Administrator determines that--
       ``(1) the unusually high or unique qualifications of the 
     employee or a special need of the Administration for the 
     employee's services makes it essential to retain the 
     employee; and
       ``(2) the employee would be likely to leave in the absence 
     of a retention bonus.
       ``(b) If the position is described as addressing a critical 
     need in the workforce plan under section 9802(b)(2)(A), the 
     amount of a bonus may not exceed 50 percent of the employee's 
     annual rate of basic pay (including comparability payments 
     under sections 5304 and 5304a).
       ``(c) If the position is not described as addressing a 
     critical need in the workforce plan under section 
     9802(b)(2)(A), the amount of a bonus may not exceed 25 
     percent of the employee's annual rate of basic pay (excluding 
     comparability payments under sections 5304 and 5304a).
       ``(d)(1)(A) Payment of a bonus under this section shall be 
     contingent upon the employee entering into a service 
     agreement with the Administration.
       ``(B) At a minimum, the service agreement shall include--
       ``(i) the required service period;
       ``(ii) the method of payment, including a payment schedule, 
     which may include a lump-sum payment, installment payments, 
     or a combination thereof;
       ``(iii) the amount of the bonus and the basis for 
     calculating the amount; and
       ``(iv) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed, and the effect of the termination.
       ``(2) The employee's service period shall be expressed as 
     the number equal to the full years and twelfth parts thereof, 
     rounding the fractional part of a month to the nearest 
     twelfth part of a year. The service period may not be less 
     than 6 months and may not exceed 4 years.
       ``(3) Notwithstanding paragraph (1), a service agreement is 
     not required if the Administration pays a bonus in biweekly 
     installments and sets the installment payment at the full 
     bonus percentage rate established for the employee, with no 
     portion of the bonus deferred. In this case, the 
     Administration shall inform the employee in writing of any 
     decision to change the retention bonus payments. The employee 
     shall continue to accrue entitlement to the retention bonus 
     through the end of the pay period in which such written 
     notice is provided.
       ``(e) A bonus under this section may not be considered to 
     be part of the basic pay of an employee.
       ``(f) An employee is not entitled to a retention bonus 
     under this section during a service period previously 
     established for that employee under section 5753 or under 
     section 9804.
       ``(g) No more than 25 percent of the total amount in 
     bonuses awarded under subsection (a) in any year may be 
     awarded to supervisors or management officials.

     ``Sec. 9806. Term appointments

       ``(a) The Administrator may authorize term appointments 
     within the Administration under subchapter I of chapter 33, 
     for a period of not less than 1 year and not more than 6 
     years.
       ``(b) Notwithstanding chapter 33 or any other provision of 
     law relating to the examination, certification, and 
     appointment of individuals in the competitive service, the 
     Administrator may convert an employee serving under a term 
     appointment to a permanent appointment in the competitive 
     service within the Administration without further competition 
     if--
       ``(1) such individual was appointed under open, competitive 
     examination under subchapter I of chapter 33 to the term 
     position;
       ``(2) the announcement for the term appointment from which 
     the conversion is made stated that there was potential for 
     subsequent conversion to a career-conditional or career 
     appointment;
       ``(3) the employee has completed at least 2 years of 
     current continuous service under a term appointment in the 
     competitive service;
       ``(4) the employee's performance under such term 
     appointment was at least fully successful or equivalent; and
       ``(5) the position to which such employee is being 
     converted under this section is in the same occupational 
     series, is in the same geographic location, and provides no 
     greater promotion potential than the term position for which 
     the competitive examination was conducted.
       ``(c) Notwithstanding chapter 33 or any other provision of 
     law relating to the examination, certification, and 
     appointment of individuals in the competitive service, the 
     Administrator may convert an employee serving under a term 
     appointment to a permanent appointment in the competitive 
     service within the Administration through internal 
     competitive promotion procedures if the conditions under 
     paragraphs (1) through (4) of subsection (b) are met.
       ``(d) An employee converted under this section becomes a 
     career-conditional employee, unless the employee has 
     otherwise completed the service requirements for career 
     tenure.
       ``(e) An employee converted to career or career-conditional 
     employment under this

[[Page 31304]]

     section acquires competitive status upon conversion.

     ``Sec. 9807. Pay authority for critical positions

       ``(a) In this section, the term `position' means--
       ``(1) a position to which chapter 51 applies, including a 
     position in the Senior Executive Service;
       ``(2) a position under the Executive Schedule under 
     sections 5312 through 5317;
       ``(3) a position established under section 3104; or
       ``(4) a senior-level position to which section 5376(a)(1) 
     applies.
       ``(b) Authority under this section--
       ``(1) may be exercised only with respect to a position 
     that--
       ``(A) is described as addressing a critical need in the 
     workforce plan under section 9802(b)(2)(A); and
       ``(B) requires expertise of an extremely high level in a 
     scientific, technical, professional, or administrative field;
       ``(2) may be exercised only to the extent necessary to 
     recruit or retain an individual exceptionally well qualified 
     for the position; and
       ``(3) may be exercised only in retaining employees of the 
     Administration or in appointing individuals who were not 
     employees of another Federal agency as defined under section 
     5102(a)(1).
       ``(c)(1) Notwithstanding section 5377, the Administrator 
     may fix the rate of basic pay for a position in the 
     Administration in accordance with this section. The 
     Administrator may not delegate this authority.
       ``(2) The number of positions with pay fixed under this 
     section may not exceed 10 at any time.
       ``(d)(1) The rate of basic pay fixed under this section may 
     not be less than the rate of basic pay (including any 
     comparability payments) which would otherwise be payable for 
     the position involved if this section had never been enacted.
       ``(2) The annual rate of basic pay fixed under this section 
     may not exceed the per annum rate of salary payable under 
     section 104 of title 3.
       ``(3) Notwithstanding any provision of section 5307, in the 
     case of an employee who, during any calendar year, is 
     receiving pay at a rate fixed under this section, no 
     allowance, differential, bonus, award, or similar cash 
     payment may be paid to such employee if, or to the extent 
     that, when added to basic pay paid or payable to such 
     employee (for service performed in such calendar year as an 
     employee in the executive branch or as an employee outside 
     the executive branch to whom chapter 51 applies), such 
     payment would cause the total to exceed the per annum rate of 
     salary which, as of the end of such calendar year, is payable 
     under section 104 of title 3.

     ``Sec. 9808. Assignments of intergovernmental personnel

       ``For purposes of applying the third sentence of section 
     3372(a) (relating to the authority of the head of a Federal 
     agency to extend the period of an employee's assignment to or 
     from a State or local government, institution of higher 
     education, or other organization), the Administrator may, 
     with the concurrence of the employee and the government or 
     organization concerned, take any action which would be 
     allowable if such sentence had been amended by striking `two' 
     and inserting `four'.

     ``Sec. 9809. Science and technology scholarship program

       ``(a)(1) The Administrator shall establish a National 
     Aeronautics and Space Administration Science and Technology 
     Scholarship Program to award scholarships to individuals that 
     is designed to recruit and prepare students for careers in 
     the Administration.
       ``(2) Individuals shall be selected to receive scholarships 
     under this section through a competitive process primarily on 
     the basis of academic merit, with consideration given to 
     financial need and the goal of promoting the participation of 
     individuals identified in section 33 or 34 of the Science and 
     Engineering Equal Opportunities Act.
       ``(3) To carry out the Program the Administrator shall 
     enter into contractual agreements with individuals selected 
     under paragraph (2) under which the individuals agree to 
     serve as full-time employees of the Administration, for the 
     period described in subsection (f)(1), in positions needed by 
     the Administration and for which the individuals are 
     qualified, in exchange for receiving a scholarship.
       ``(b) In order to be eligible to participate in the 
     Program, an individual must--
       ``(1) be enrolled or accepted for enrollment as a full-time 
     student at an institution of higher education in an academic 
     field or discipline described in the list made available 
     under subsection (d);
       ``(2) be a United States citizen or permanent resident; and
       ``(3) at the time of the initial scholarship award, not be 
     an employee (as defined in section 2105).
       ``(c) An individual seeking a scholarship under this 
     section shall submit an application to the Administrator at 
     such time, in such manner, and containing such information, 
     agreements, or assurances as the Administrator may require.
       ``(d) The Administrator shall make publicly available a 
     list of academic programs and fields of study for which 
     scholarships under the Program may be utilized and shall 
     update the list as necessary.
       ``(e)(1) The Administrator may provide a scholarship under 
     the Program for an academic year if the individual applying 
     for the scholarship has submitted to the Administrator, as 
     part of the application required under subsection (c), a 
     proposed academic program leading to a degree in a program or 
     field of study on the list made available under subsection 
     (d).
       ``(2) An individual may not receive a scholarship under 
     this section for more than 4 academic years, unless the 
     Administrator grants a waiver.
       ``(3) The dollar amount of a scholarship under this section 
     for an academic year shall be determined under regulations 
     issued by the Administrator, but shall in no case exceed the 
     cost of attendance.
       ``(4) A scholarship provided under this section may be 
     expended for tuition, fees, and other authorized expenses as 
     established by the Administrator by regulation.
       ``(5) The Administrator may enter into a contractual 
     agreement with an institution of higher education under which 
     the amounts provided for a scholarship under this section for 
     tuition, fees, and other authorized expenses are paid 
     directly to the institution with respect to which the 
     scholarship is provided.
       ``(f)(1) The period of service for which an individual 
     shall be obligated to serve as an employee of the 
     Administration is, except as provided in subsection (h)(2), 
     24 months for each academic year for which a scholarship 
     under this section is provided. Under no circumstances shall 
     the total period of obligated service be more than 4 years.
       ``(2)(A) Except as provided in subparagraph (B), obligated 
     service under paragraph (1) shall begin not later than 60 
     days after the individual obtains the educational degree for 
     which the scholarship was provided.
       ``(B) The Administrator may defer the obligation of an 
     individual to provide a period of service under paragraph (1) 
     if the Administrator determines that such a deferral is 
     appropriate. The Administrator shall prescribe the terms and 
     conditions under which a service obligation may be deferred 
     through regulation.
       ``(g)(1) Scholarship recipients who fail to maintain a high 
     level of academic standing, as defined by the Administrator 
     by regulation, who are dismissed from their educational 
     institutions for disciplinary reasons, or who voluntarily 
     terminate academic training before graduation from the 
     educational program for which the scholarship was awarded, 
     shall be in breach of their contractual agreement and, in 
     lieu of any service obligation arising under such agreement, 
     shall be liable to the United States for repayment within 1 
     year after the date of default of all scholarship funds paid 
     to them and to the institution of higher education on their 
     behalf under the agreement, except as provided in subsection 
     (h)(2). The repayment period may be extended by the 
     Administrator when determined to be necessary, as established 
     by regulation.
       ``(2) Scholarship recipients who, for any reason, fail to 
     begin or complete their service obligation after completion 
     of academic training, or fail to comply with the terms and 
     conditions of deferment established by the Administrator 
     pursuant to subsection (f)(2)(B), shall be in breach of their 
     contractual agreement. When recipients breach their 
     agreements for the reasons stated in the preceding sentence, 
     the recipient shall be liable to the United States for an 
     amount equal to--
       ``(A) the total amount of scholarships received by such 
     individual under this section; plus
       ``(B) the interest on the amounts of such awards which 
     would be payable if at the time the awards were received they 
     were loans bearing interest at the maximum legal prevailing 
     rate, as determined by the Treasurer of the United States,

     multiplied by 3.
       ``(h)(1) Any obligation of an individual incurred under the 
     Program (or a contractual agreement thereunder) for service 
     or payment shall be canceled upon the death of the 
     individual.
       ``(2) The Administrator shall by regulation provide for the 
     partial or total waiver or suspension of any obligation of 
     service or payment incurred by an individual under the 
     Program (or a contractual agreement thereunder) whenever 
     compliance by the individual is impossible or would involve 
     extreme hardship to the individual, or if enforcement of such 
     obligation with respect to the individual would be contrary 
     to the best interests of the Government.
       ``(i) For purposes of this section--
       ``(1) the term `cost of attendance' has the meaning given 
     that term in section 472 of the Higher Education Act of 1965;
       ``(2) the term `institution of higher education' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965; and
       ``(3) the term `Program' means the National Aeronautics and 
     Space Administration Science and Technology Scholarship 
     Program established under this section.
       ``(j)(1) There is authorized to be appropriated to the 
     Administration for the Program $10,000,000 for each fiscal 
     year.

[[Page 31305]]

       ``(2) Amounts appropriated under this section shall remain 
     available for 2 fiscal years.

     ``Sec. 9810. Distinguished scholar appointment authority

       ``(a) In this section--
       ``(1) the term `professional position' means a position 
     that is classified to an occupational series identified by 
     the Office of Personnel Management as a position that--
       ``(A) requires education and training in the principles, 
     concepts, and theories of the occupation that typically can 
     be gained only through completion of a specified curriculum 
     at a recognized college or university; and
       ``(B) is covered by the Group Coverage Qualification 
     Standard for Professional and Scientific Positions; and
       ``(2) the term `research position' means a position in a 
     professional series that primarily involves scientific 
     inquiry or investigation, or research-type exploratory 
     development of a creative or scientific nature, where the 
     knowledge required to perform the work successfully is 
     acquired typically and primarily through graduate study.
       ``(b) The Administration may appoint, without regard to the 
     provisions of section 3304(b) and sections 3309 through 3318, 
     but subject to subsection (c), candidates directly to General 
     Schedule professional, competitive service positions in the 
     Administration for which public notice has been given (in 
     accordance with regulations of the Office of Personnel 
     Management), if--
       ``(1) with respect to a position at the GS-7 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant baccalaureate degrees, a baccalaureate degree in a 
     field of study for which possession of that degree in 
     conjunction with academic achievements meets the 
     qualification standards as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.0 or 
     higher on a 4.0 scale and a grade point average of 3.5 or 
     higher for courses in the field of study required to qualify 
     for the position;
       ``(2) with respect to a position at the GS-9 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position;
       ``(3) with respect to a position at the GS-11 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position; or
       ``(4) with respect to a research position at the GS-12 
     level, the individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position.
       ``(c) In making any selections under this section, 
     preference eligibles who meet the criteria for distinguished 
     scholar appointments shall be considered ahead of 
     nonpreference eligibles.
       ``(d) An appointment made under this authority shall be a 
     career-conditional appointment in the competitive civil 
     service.

     ``Sec. 9811. Travel and transportation expenses of certain 
       new appointees

       ``(a) In this section, the term `new appointee' means--
       ``(1) a person newly appointed or reinstated to Federal 
     service to the Administration to--
       ``(A) a career or career-conditional appointment or an 
     excepted service appointment to a continuing position;
       ``(B) a term appointment;
       ``(C) an excepted service appointment that provides for 
     noncompetitive conversion to a career or career-conditional 
     appointment;
       ``(D) a career or limited term Senior Executive Service 
     appointment;
       ``(E) an appointment made under section 203(c)(2)(A) of the 
     National Aeronautics and Space Act of 1958 (42 U.S.C. 
     2473(c)(2)(A));
       ``(F) an appointment to a position established under 
     section 3104; or
       ``(G) an appointment to a position established under 
     section 5108; or
       ``(2) a student trainee who, upon completion of academic 
     work, is converted to an appointment in the Administration 
     that is identified in paragraph (1) in accordance with an 
     appropriate authority.
       ``(b) The Administrator may pay the travel, transportation, 
     and relocation expenses of a new appointee to the same 
     extent, in the same manner, and subject to the same 
     conditions as the payment of such expenses under sections 
     5724, 5724a, 5724b, and 5724c to an employee transferred in 
     the interests of the United States Government.

     ``Sec. 9812. Annual leave enhancements

       ``(a) In this section--
       ``(1) the term `newly appointed employee' means an 
     individual who is first appointed--
       ``(A) as an employee of the Federal Government; or
       ``(B) as an employee of the Federal Government following a 
     break in service of at least 90 days after that individual's 
     last period of Federal employment, other than--
       ``(i) employment under the Student Educational Employment 
     Program administered by the Office of Personnel Management;
       ``(ii) employment as a law clerk trainee;
       ``(iii) employment under a short-term temporary appointing 
     authority while a student during periods of vacation from the 
     educational institution at which the student is enrolled;
       ``(iv) employment under a provisional appointment if the 
     new appointment is permanent and immediately follows the 
     provisional appointment; or
       ``(v) employment under a temporary appointment that is 
     neither full-time nor the principal employment of the 
     individual;
       ``(2) the term `period of qualified non-Federal service' 
     means any period of service performed by an individual that--
       ``(A) was performed in a position the duties of which were 
     directly related to the duties of the position in the 
     Administration which that individual will fill as a newly 
     appointed employee; and
       ``(B) except for this section, would not otherwise be 
     service performed by an employee for purposes of section 
     6303; and
       ``(3) the term `directly related to the duties of the 
     position' means duties and responsibilities in the same line 
     of work which require similar qualifications.
       ``(b)(1) For purposes of section 6303, the Administrator 
     may deem a period of qualified non-Federal service performed 
     by a newly appointed employee to be a period of service of 
     equal length performed as an employee.
       ``(2) A decision under paragraph (1) to treat a period of 
     qualified non-Federal service as if it were service performed 
     as an employee shall continue to apply so long as that 
     individual serves in or under the Administration.
       ``(c)(1) Notwithstanding section 6303(a), the annual leave 
     accrual rate for an employee of the Administration in a 
     position paid under section 5376 or 5383, or for an employee 
     in an equivalent category whose rate of basic pay is greater 
     than the rate payable at GS-15, step 10, shall be 1 day for 
     each full biweekly pay period.
       ``(2) The accrual rate established under this subsection 
     shall continue to apply to the employee so long as such 
     employee serves in or under the Administration.

     ``Sec. 9813. Limited appointments to Senior Executive Service 
       positions

       ``(a) In this section--
       ``(1) the term `career reserved position' means a position 
     in the Administration designated under section 3132(b) which 
     may be filled only by--
       ``(A) a career appointee; or
       ``(B) a limited emergency appointee or a limited term 
     appointee--
       ``(i) who, immediately before entering the career reserved 
     position, was serving under a career or career-conditional 
     appointment outside the Senior Executive Service; or
       ``(ii) whose limited emergency or limited term appointment 
     is approved in advance by the Office of Personnel Management;
       ``(2) the term `limited emergency appointee' has the 
     meaning given under section 3132; and
       ``(3) the term `limited term appointee' means an individual 
     appointed to a Senior Executive Service position in the 
     Administration to meet a bona fide temporary need, as 
     determined by the Administrator.
       ``(b) The number of career reserved positions which are 
     filled by an appointee as described under subsection 
     (a)(1)(B) may not exceed 10 percent of the total number of 
     Senior Executive Service positions allocated to the 
     Administration.
       ``(c) Notwithstanding sections 3132 and 3394(b)--
       ``(1) the Administrator may appoint an individual to any 
     Senior Executive Service position in the Administration as a 
     limited term appointee under this section for a period of--
       ``(A) 4 years or less to a position the duties of which 
     will expire at the end of such term; or
       ``(B) 1 year or less to a position the duties of which are 
     continuing; and
       ``(2) in rare circumstances, the Administrator may 
     authorize an extension of a limited appointment under--
       ``(A) paragraph (1)(A) for a period not to exceed 2 years; 
     and

[[Page 31306]]

       ``(B) paragraph (1)(B) for a period not to exceed 1 year.
       ``(d) A limited term appointee who has been appointed in 
     the Administration from a career or career-conditional 
     appointment outside the Senior Executive Service shall have 
     reemployment rights in the agency from which appointed, or in 
     another agency, under requirements and conditions established 
     by the Office of Personnel Management. The Office shall have 
     the authority to direct such placement in any agency.
       ``(e) Notwithstanding section 3394(b) and section 3395--
       ``(1) a limited term appointee serving under a term 
     prescribed under this section may be reassigned to another 
     Senior Executive Service position in the Administration, the 
     duties of which will expire at the end of a term of 4 years 
     or less; and
       ``(2) a limited term appointee serving under a term 
     prescribed under this section may be reassigned to another 
     continuing Senior Executive Service position in the 
     Administration, except that the appointee may not serve in 1 
     or more positions in the Administration under such 
     appointment in excess of 1 year, except that in rare 
     circumstances, the Administrator may approve an extension up 
     to an additional 1 year.
       ``(f) A limited term appointee may not serve more than 7 
     consecutive years under any combination of limited 
     appointments.
       ``(g) Notwithstanding section 5384, the Administrator may 
     authorize performance awards to limited term appointees in 
     the Administration in the same amounts and in the same manner 
     as career appointees.

     ``Sec. 9814. Qualifications pay

       ``(a) Notwithstanding section 5334, the Administrator may 
     set the pay of an employee paid under the General Schedule at 
     any step within the pay range for the grade of the position, 
     if such employee--
       ``(1) possesses unusually high or unique qualifications; 
     and
       ``(2) is assigned--
       ``(A) new duties, without a change of position; or
       ``(B) to a new position.
       ``(b) If an exercise of the authority under this section 
     relates to a current employee selected for another position 
     within the Administration, a determination shall be made that 
     the employee's contribution in the new position will exceed 
     that in the former position, before setting pay under this 
     section.
       ``(c) Pay as set under this section is basic pay for such 
     purposes as pay set under section 5334.
       ``(d) If the employee serves for at least 1 year in the 
     position for which the pay determination under this section 
     was made, or a successor position, the pay earned under such 
     position may be used in succeeding actions to set pay under 
     chapter 53.
       ``(e) Before setting any employee's pay under this section, 
     the Administrator shall submit a plan to the Office of 
     Personnel Management and the appropriate committees of 
     Congress, that includes--
       ``(1) criteria for approval of actions to set pay under 
     this section;
       ``(2) the level of approval required to set pay under this 
     section;
       ``(3) all types of actions and positions to be covered;
       ``(4) the relationship between the exercise of authority 
     under this section and the use of other pay incentives; and
       ``(5) a process to evaluate the effectiveness of this 
     section.

     ``Sec. 9815. Reporting requirement

       ``The Administrator shall submit to the appropriate 
     committees of Congress, not later than February 28 of each of 
     the next 6 years beginning after the date of enactment of 
     this chapter, a report that provides the following:
       ``(1) A summary of all bonuses paid under subsections (b) 
     and (c) of section 9804 during the preceding fiscal year. 
     Such summary shall include the total amount of bonuses paid, 
     the total number of bonuses paid, the percentage of the 
     amount of bonuses awarded to supervisors and management 
     officials, and the average percentage used to calculate the 
     total average bonus amount, under each of those subsections.
       ``(2) A summary of all bonuses paid under subsections (b) 
     and (c) of section 9805 during the preceding fiscal year. 
     Such summary shall include the total amount of bonuses paid, 
     the total number of bonuses paid, the percentage of the 
     amount of bonuses awarded to supervisors and management 
     officials, and the average percentage used to calculate the 
     total average bonus amount, under each of those subsections.
       ``(3) The total number of term appointments converted 
     during the preceding fiscal year under section 9806 and, of 
     that total number, the number of conversions that were made 
     to address a critical need described in the workforce plan 
     pursuant to section 9802(b)(2).
       ``(4) The number of positions for which the rate of basic 
     pay was fixed under section 9807 during the preceding fiscal 
     year, the number of positions for which the rate of basic pay 
     under such section was terminated during the preceding fiscal 
     year, and the number of times the rate of basic pay was fixed 
     under such section to address a critical need described in 
     the workforce plan pursuant to section 9802(b)(2).
       ``(5) The number of scholarships awarded under section 9809 
     during the preceding fiscal year and the number of 
     scholarship recipients appointed by the Administration during 
     the preceding fiscal year.
       ``(6) The total number of distinguished scholar 
     appointments made under section 9810 during the preceding 
     fiscal year and, of that total number, the number of 
     appointments that were made to address a critical need 
     described in the workforce plan pursuant to section 
     9802(b)(2).
       ``(7) The average amount paid per appointee, and the 
     largest amount paid to any appointee, under section 9811 
     during the preceding fiscal year for travel and 
     transportation expenses.
       ``(8) The total number of employees who were awarded 
     enhanced annual leave under section 9812 during the preceding 
     fiscal year; of that total number, the number of employees 
     who were serving in a position addressing a critical need 
     described in the workforce plan pursuant to section 
     9802(b)(2); and, for employees in each of those respective 
     groups, the average amount of additional annual leave such 
     employees earned in the preceding fiscal year (over and above 
     what they would have earned absent section 9812).
       ``(9) The total number of appointments made under section 
     9813 during the preceding fiscal year and, of that total 
     number, the number of appointments that were made to address 
     a critical need described in the workforce plan pursuant to 
     section 9802(b)(2).
       ``(10) The number of employees for whom the Administrator 
     set the pay under section 9814 during the preceding fiscal 
     year and the number of times pay was set under such section 
     to address a critical need described in the workforce plan 
     pursuant to section 9802(b)(2).
       ``(11) A summary of all recruitment, relocation, 
     redesignation, and retention bonuses paid under authorities 
     other than this chapter and excluding the authorities 
     provided in sections 5753 and 5754 of this title, during the 
     preceding fiscal year. Such summary shall include, for each 
     type of bonus, the total amount of bonuses paid, the total 
     number of bonuses paid, the percentage of the amount of 
     bonuses awarded to supervisors and management officials, and 
     the average percentage used to calculate the total average 
     bonus amount.''.
       (b) Clerical Amendment.--The table of chapters for part III 
     of title 5, United States Code, is amended by adding at the 
     end the following:

``98. National Aeronautics and Space Administration.........9801''.....

                                 ______
                                 
  SA 2215. Mr. ENSIGN (for Mr. Inhofe (for himself and Mr. Jeffords)) 
proposed an amendment to the bill H.R. 1006, to amend the Lacey Act 
Amendments of 1981 to further the conservation of certain wildlife 
species; as follows:

       On page 2, strike lines 11 through 14 and insert the 
     following:
       ``(g) Prohibited Wildlife Species.--The term `prohibited 
     wildlife species' means any live species of lion, tiger, 
     leopard, cheetah, jaguar, or cougar or any hybrid of such 
     species.''.
       On page 3, line 1, strike ``live animal of a''.
       On page 3, strike lines 20 through 22 and insert the 
     following:
       ``(A) is licensed or registered, and inspected, by the 
     Animal and Plant Health Inspection Service or any other 
     Federal agency with respect to that species;
       On page 4, line 12, insert ``listed in section 2(g)'' after 
     ``animals''.
       On page 4, line 14, insert ``listed in section 2(g)'' after 
     ``animals''.
       On page 5, line 3, strike the quotation marks and the 
     following period.
       On page 5, between lines 3 and 4, insert the following:
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out subsection (a)(2)(C) 
     $3,000,000 for each of fiscal years 2004 through 2008.''.
                                 ______
                                 
  SA 2216. Mr. ENSIGN (for Mr. Shelby) proposed an amendment to the 
bill S. 811, to support certain housing proposals in the fiscal year 
2003 budget for the Federal Government, including the downpayment 
assistance initiative under the HOME Investment Partnership Act, and 
for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

                    TITLE I--DOWNPAYMENT ASSISTANCE

Sec. 101. Short title.
Sec. 102. Downpayment assistance initiative.

             TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Demonstration program for elderly housing for 
              intergenerational families.
Sec. 204. Training for HUD personnel regarding grandparent-headed and 
              relative-headed families issues.

[[Page 31307]]

Sec. 205. Study of housing needs of grandparent-headed and relative-
              headed families.

   TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT 
                              ADJUSTMENTS

Sec. 301. Hybrid arms.
Sec. 302. FHA multifamily loan limit adjustments.

               TITLE IV--HOPE VI PROGRAM REAUTHORIZATION

Sec. 401. Short title.
Sec. 402. Hope VI program reauthorization.
Sec. 403. Hope VI grants for assisting affordable housing through main 
              street projects.

              TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 501. Funding for insular areas.

                    TITLE I--DOWNPAYMENT ASSISTANCE

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``American Dream Downpayment 
     Act''.

     SEC. 102. DOWNPAYMENT ASSISTANCE INITIATIVE.

       (a) Downpayment Assistance Initiative.--Subtitle E of title 
     II of the Cranston-Gonzalez National Affordable Housing Act 
     (42 U.S.C. 12821) is amended to read as follows:

                     ``Subtitle E--Other Assistance

     ``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

       ``(a) Definitions.--In this section:
       ``(1) Downpayment assistance.--The term ``downpayment 
     assistance'' means assistance to help a family acquire a 
     principal residence.
       ``(2) Home repairs.--The term ``home repairs'' means 
     capital improvements or repairs that--
       ``(A) are identified in an appraisal or home inspection 
     completed in conjunction with a home purchase; or
       ``(B) are completed within 1 year of the purchase of a 
     home, and are necessary to bring the housing into compliance 
     with health and safety housing codes of the unit of general 
     local government in which the housing is located, including 
     the remediation of lead paint or other home health hazards.
       ``(3) Participating jurisdiction.--The term ``participating 
     jurisdiction'' means a State or unit of general local 
     government designated under section 216.
       ``(4) State.--The term ``State'' means any State of the 
     United States and the District of Columbia.
       ``(b) Grant Authority.--The Secretary may award grants to 
     participating jurisdictions to assist low-income families to 
     achieve homeownership, in accordance with this section.
       ``(c) Eligible Activities.--
       ``(1) In general.--
       ``(A) Downpayment assistance.--Subject to subparagraph (B), 
     grants awarded under this section may be used only for 
     downpayment assistance toward the purchase of single family 
     housing (including 1 to 4 unit family dwelling units, 
     condominium units, cooperative units, and manufactured 
     housing units which are located on land which is owned by the 
     manufactured housing unit owner, owned as a cooperative, or 
     is subject to a leasehold interest with a term equal to at 
     least the term of the mortgage financing on the unit, and 
     manufactured housing lots) by low-income families who are 
     first-time home-buyers.
       ``(B) Home repairs.--Not more than 20 percent of the grant 
     funds provided under subsection (d) to a participating 
     jurisdiction may be used to provide assistance to low-income, 
     first-time home-buyers for home repairs.
       ``(2) Limitations.--
       ``(A) Amount of assistance.--The amount of assistance 
     provided to any low-income families under paragraph (1) shall 
     not exceed the greater of--
       ``(i) 6 percent of the purchase price of a single family 
     housing unit; or
       ``(ii) $10,000.
       ``(B) Participation.--A participating jurisdiction may not 
     use any amount of a grant awarded under this section to 
     provide funding to an entity or organization that provides 
     downpayment assistance if the activities of that entity or 
     organization are financed in whole or in part, directly or 
     indirectly, by contributions, service fees, or other payments 
     from the sellers of housing.
       ``(d) Formula Allocation.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall allocate any amounts made available for assistance 
     under this section to each State that is a participating 
     jurisdiction in an amount equal to a percentage of the total 
     allocation that is equal to the percentage of the national 
     total of low-income households residing in rental housing in 
     the State, as determined on the basis of the most recent 
     census data compiled by the Bureau of the Census.
       ``(2) Participating jurisdictions other than states.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     fiscal year, of the amount allocated to each State under 
     paragraph (1), the Secretary shall further allocate from such 
     amount to each participating jurisdiction located within such 
     State an amount equal to the percentage of the allocation 
     made to the State under paragraph (1) that is equal to the 
     percentage of the State-wide total of low-income households 
     residing in rental housing in such participating 
     jurisdiction, as determined on the basis of the most recent 
     census data compiled by the Bureau of the Census.
       ``(B) Limitation.--
       ``(i) In general.--Direct allocations made under 
     subparagraph (A) shall be made to a local participating 
     jurisdiction only if--

       ``(I) the participating jurisdiction has a total population 
     of 150,000 individuals or more, as determined on the basis of 
     the most recent census data compiled by the Bureau of the 
     Census; or
       ``(II) the participating jurisdiction would receive an 
     allocation of $50,000 or more.

       ``(ii) Reversion.--Any allocation that would have otherwise 
     been made to a participating jurisdiction that does not meet 
     the requirements of clause (i) shall revert back to the State 
     in which the participating jurisdiction is located.
       ``(e) Reallocation.--If any amounts allocated to a 
     participating jurisdiction under this section become 
     available for reallocation, the amounts shall be reallocated 
     to other participating jurisdictions in accordance with 
     subsection (d).
       ``(f) Applicability of Other Provisions.--
       ``(1) In general.--Except as otherwise provided in this 
     section, grants made under this section shall not be subject 
     to the provisions of this title.
       ``(2) Applicable provisions.--In addition to the 
     requirements of this section, grants made under this section 
     shall be subject to the provisions of title I, sections 
     215(b), 218, 219, 221, 223, 224, and 226(a) of subtitle A of 
     this title, and subtitle F of this title.
       ``(3) References.--In applying the requirements of subtitle 
     A referred to in paragraph (2)--
       ``(A) any references to funds under subtitle A shall be 
     considered to refer to amounts made available for assistance 
     under this section; and
       ``(B) any references to funds allocated or reallocated 
     under section 217 or 217(d) shall be considered to refer to 
     amounts allocated or reallocated under subsection (d) or (e) 
     of this section, respectively.
       ``(g) Housing Strategy.--To be eligible to receive a grant 
     under this section in any fiscal year, a participating 
     jurisdiction shall include in its comprehensive housing 
     affordability strategy developed under section 105 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12705) for such fiscal year--
       ``(1) a description of the anticipated use of any grant 
     received under this section;
       ``(2) a plan for conducting targeted outreach to residents 
     and tenants of public housing, trailer parks, and 
     manufactured housing, and to other families assisted by 
     public housing agencies, for the purpose of ensuring that 
     grant amounts provided under this section to a participating 
     jurisdiction are used for downpayment assistance for such 
     residents, tenants, and families; and
       ``(3) a description of the actions to be taken to ensure 
     the suitability of families receiving downpayment assistance 
     under this section to undertake and maintain homeownership.
       ``(h) Report.--Not later than June 30, 2006, the 
     Comptroller General of the United States shall submit a 
     report containing a State-by-State analysis of the impact of 
     grants awarded under this section to--
       ``(1) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(2) the Committee on Financial Services of the House of 
     Representatives.
       ``(i) Sunset.--The Secretary shall have no authority to 
     make grants under this Act after December 31, 2007.
       ``(j) Relocation Assistance and Downpayment Assistance.--
     The Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (84 Stat. 1894) shall not 
     apply to downpayment assistance under this section.
       ``(k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $200,000,000 for 
     each of fiscal years 2004 through 2007.''.

             TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE

     SECTION 201. SHORT TITLE.

       This title may be cited as the ``Living Equitably: 
     Grandparents Aiding Children and Youth Act of 2003'' or the 
     ``LEGACY Act of 2003''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--The term ``child'' means an individual who--
       (A) is not attending school and is not more than 18 years 
     of age; or
       (B) is attending school and is not more than 19 years of 
     age.
       (2) Covered family.--The term ``covered family'' means a 
     family that--
       (A) includes a child; and
       (B) has a head of household who is--
       (i) a grandparent of the child who is raising the child; or
       (ii) a relative of the child who is raising the child.
       (3) Elderly person.--The term ``elderly person'' has the 
     same meaning as in section 202(k) of the Housing Act of 1959 
     (12 U.S.C. 1701q(k)).

[[Page 31308]]

       (4) Grandparent.--
       (A) In general.--The term ``grandparent'' means, with 
     respect to a child, an individual who is a grandparent or 
     stepgrandparent of the child by blood or marriage, regardless 
     of the age of such individual.
       (B) Case of adoption.--In the case of a child who was 
     adopted, the term includes an individual who, by blood or 
     marriage, is a grandparent or stepgrandparent of the child as 
     adopted.
       (5) Intergenerational dwelling unit.--The term 
     ``intergenerational dwelling unit'' means a qualified 
     dwelling unit that is reserved for occupancy only by an 
     intergenerational family.
       (6) Intergenerational family.--The term ``intergenerational 
     family'' means a covered family that has a head of household 
     who is an elderly person.
       (7) Private nonprofit organization.--The term ``private 
     nonprofit organization'' has the same meaning as in section 
     202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
       (8) Qualified dwelling unit.--The term ``qualified dwelling 
     unit'' means a dwelling unit that--
       (A) has not fewer than 2 separate bedrooms;
       (B) is equipped with design features appropriate to meet 
     the special physical needs of elderly persons, as needed; and
       (C) is equipped with design features appropriate to meet 
     the special physical needs of young children, as needed.
       (9) Raising a child.--The term ``raising a child'' means, 
     with respect to an individual, that the individual--
       (A) resides with the child; and
       (B) is the primary caregiver for the child--
       (i) because the biological or adoptive parents of the child 
     do not reside with the child or are unable or unwilling to 
     serve as the primary caregiver for the child; and
       (ii) regardless of whether the individual has a legal 
     relationship to the child (such as guardianship or legal 
     custody) or is caring for the child informally and has no 
     such legal relationship with the child.
       (10) Relative.--
       (A) In general.--The term ``relative'' means, with respect 
     to a child, an individual who--
       (i) is not a parent of the child by blood or marriage; and
       (ii) is a relative of the child by blood or marriage, 
     regardless of the age of the individual.
       (B) Case of adoption.--In the case of a child who was 
     adopted, the term ``relative'' includes an individual who, by 
     blood or marriage, is a relative of the family who adopted 
     the child.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.

     SEC. 203. DEMONSTRATION PROGRAM FOR ELDERLY HOUSING FOR 
                   INTERGENERATIONAL FAMILIES.

       (a) Demonstration Program.--The Secretary shall carry out a 
     demonstration program (referred to in this section as the 
     ``demonstration program'') to provide assistance for 
     intergenerational dwelling units for intergenerational 
     families in connection with the supportive housing program 
     under section 202 of the Housing Act of 1959 (12 U.S.C. 
     1701q).
       (b) Intergenerational Dwelling Units.--The Secretary shall 
     provide assistance under this section only to private 
     nonprofit organizations selected under subsection (d) for use 
     only for expanding the supply of intergenerational dwelling 
     units, which units shall be provided--
       (1) by designating and retrofitting, for use as 
     intergenerational dwelling units, existing dwelling units 
     that are located within a project assisted under section 202 
     of the Housing Act of 1959 (12 U.S.C. 1701q);
       (2) through development of buildings or projects comprised 
     solely of intergenerational dwelling units; or
       (3) through the development of an annex or addition to an 
     existing project assisted under section 202 of the Housing 
     Act of 1959 (12 U.S.C. 1701q), that contains 
     intergenerational dwelling units, including through the 
     development of elder cottage housing opportunity units that 
     are small, freestanding, barrier free, energy efficient, 
     removable dwelling units located adjacent to a larger project 
     or dwelling.
       (c) Program Terms.--Assistance provided pursuant to this 
     section shall be subject to the provisions of section 202 of 
     the Housing Act of 1959 (12 U.S.C. 1701q), except that--
       (1) notwithstanding subsection (d)(1) of that section 202 
     or any provision of that section restricting occupancy to 
     elderly persons, any intergenerational dwelling unit assisted 
     under the demonstration program may be occupied by an 
     intergenerational family;
       (2) subsections (e) and (f) of that section 202 shall not 
     apply;
       (3) in addition to the requirements under subsection (g) of 
     that section 202, the Secretary shall--
       (A) ensure that occupants of intergenerational dwelling 
     units assisted under the demonstration program are provided a 
     range of services that are tailored to meet the needs of 
     elderly persons, children, and intergenerational families; 
     and
       (B) coordinate with the heads of other Federal agencies as 
     may be appropriate to ensure the provision of such services; 
     and
       (4) the Secretary may waive or alter any other provision of 
     that section 202 necessary to provide for assistance under 
     the demonstration program.
       (d) Selection.--The Secretary shall--
       (1) establish application procedures for private nonprofit 
     organizations to apply for assistance under this section; and
       (2) to the extent that amounts are made available pursuant 
     to subsection (f), select not less than 2 and not more than 4 
     projects that are assisted under section 202 of the Housing 
     Act of 1959 (12 U.S.C. 1701q) for assistance under this 
     section, based on the ability of the applicant to develop and 
     operate intergenerational dwelling units and national 
     geographical diversity among those projects funded.
       (e) Report.--Not later than 36 months after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     Congress that--
       (1) describes the demonstration program; and
       (2) analyzes the effectiveness of the demonstration 
     program.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated $10,000,000 to carry out this section.
       (g) Sunset.--The demonstration program carried out under 
     this section shall terminate 5 years after the date of 
     enactment of this Act.

     SEC. 204. TRAINING FOR HUD PERSONNEL REGARDING GRANDPARENT-
                   HEADED AND RELATIVE-HEADED FAMILIES ISSUES.

       Section 7 of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3535) is amended by adding at the 
     end the following:
       ``(t) Training Regarding Issues Relating to Grandparent-
     Headed and Relative-Headed Families.--The Secretary shall 
     ensure that all personnel employed in field offices of the 
     Department who have responsibilities for administering the 
     housing assistance program under section 8 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437f) or the 
     supportive housing program under section 202 of the Housing 
     Act of 1959 (12 U.S.C. 1701q), and an appropriate number of 
     personnel in the headquarters office of the Department who 
     have responsibilities for those programs, have received 
     adequate training regarding how covered families (as that 
     term is defined in section 202 of the LEGACY Act of 2003) can 
     be served by existing affordable housing programs.''.

     SEC. 205. STUDY OF HOUSING NEEDS OF GRANDPARENT-HEADED AND 
                   RELATIVE-HEADED FAMILIES.

       (a) In General.--The Secretary and the Director of the 
     Bureau of the Census jointly shall--
       (1) conduct a study to determine an estimate of the number 
     of covered families in the United States and their affordable 
     housing needs; and
       (2) submit a report to Congress regarding the results of 
     the study conducted under paragraph (1).
       (b) Report and Recommendations.--The report required under 
     subsection (a) shall--
       (1) be submitted to Congress not later than 12 months after 
     the date of enactment of this Act; and
       (2) include recommendations by the Secretary and the 
     Director of the Bureau of the Census regarding how the major 
     assisted housing programs of the Department of Housing and 
     Urban Development, including the supportive housing for the 
     elderly program under section 202 of the Housing Act of 1959 
     (12 U.S.C. 1701q) can be used and, if appropriate, amended or 
     altered, to meet the affordable housing needs of covered 
     families.

   TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT 
                              ADJUSTMENTS

     SEC. 301. HYBRID ARMS.

       (a) In General.--Section 251(d)(1)(C) of the National 
     Housing Act (12 U.S.C. 1715z-16(d)(1)(C)) is amended by 
     striking ``five'' and inserting ``3''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to mortgages executed on or after the date of the 
     enactment of this title.

     SEC. 302. FHA MULTIFAMILY LOAN LIMIT ADJUSTMENTS.

       (a) Short Title.--This section may be cited as the ``FHA 
     Multifamily Loan Limit Adjustment Act of 2003''.
       (b) Maximum Mortgage Amount Limit for Multifamily Housing 
     in High-Cost Areas.--Sections 207(c)(3), 213(b)(2)(B)(i), 
     220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 
     231(c)(2)(B), and 234(e)(3)(B) of the National Housing Act 
     (12 U.S.C. 1713(c)(3), 1715e(b)(2)(B)(i), 
     1715k(d)(3)(B)(iii)(II), 1715l(d)(3)(ii)(III), 
     1715l(d)(4)(ii)(II), 1715v(c)(2)(B)), and 1715y(e)(3)(B)) are 
     each amended--
       (1) by striking ``110 percent'' and inserting ``140 
     percent''; and
       (2) by inserting ``, or 170 percent in high cost areas,'' 
     after ``140 percent''.
       (c) Catch-up Adjustments to Certain Maximum Mortgage Amount 
     Limits.--
       (1) Section 207 Limits.--Section 207(c)(3)(A) of the 
     National Housing Act (12 U.S.C. 1713(c)(3)(A)) is amended by 
     striking ``$11,250'' and inserting ``$17,460''.
       (2) Section 213 Limits.--Section 213(b)(2)(A) of the 
     National Housing Act (12 U.S.C. 1715e(b)(2)(A)) is amended--

[[Page 31309]]

       (A) by striking ``$38,025'' and inserting ``$41,207'';
       (B) by striking ``$42,120'' and inserting ``$47,511'';
       (C) by striking ``$50,310'' and inserting ``$57,300'';
       (D) by striking ``$62,010'' and inserting ``$73,343'';
       (E) by striking ``$70,200'' and inserting ``$81,708'';
       (F) by striking ``$49,140'' and inserting ``$49,710'';
       (G) by striking ``$60,255'' and inserting ``$60,446'';
       (H) by striking ``$75,465'' and inserting ``$78,197''; and
       (I) by striking ``$85,328'' and inserting ``$85,836''.
       (d) Rehabilitation and Neighborhood Conservation Housing 
     Mortgage Insurance.--Section 220(d)(3)(B)(iii) of the 
     National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii) is 
     amended--
       (1) by striking ``with respect to dollar amount limitations 
     applicable to rehabilitation projects described in subclause 
     (II),'' and inserting ``; (III)''; and
       (2) by redesignating subclauses (III) and (IV) as 
     subclauses (IV) and (V), respectively.

               TITLE IV--HOPE VI PROGRAM REAUTHORIZATION

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``HOPE VI Program 
     Reauthorization and Small Community Mainstreet Rejuvenation 
     and Housing Act of 2003''.

     SEC. 402. HOPE VI PROGRAM REAUTHORIZATION.

       (a) Selection Criteria.--Section 24(e)(2) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is 
     amended--
       (1) by striking the matter preceding subparagraph (A) and 
     inserting the following:
       ``(2) Selection criteria.--The Secretary shall establish 
     criteria for the award of grants under this section and shall 
     include among the factors--'';
       (2) in subparagraph (B), by striking ``large-scale'';
       (3) in subparagraph (D)--
       (A) by inserting ``and ongoing implementation'' after 
     ``development''; and
       (B) by inserting ``, except that the Secretary may not 
     award a grant under this section unless the applicant has 
     involved affected public housing residents at the beginning 
     and during the planning process for the revitalization 
     program, prior to submission of an application'' before the 
     semicolon at the end;
       (4) in subparagraph (H), by striking ``and'' at the end;
       (5) by redesignating subparagraph (I) as subparagraph (L); 
     and
       (6) by inserting after subparagraph (H) the following:
       ``(I) the extent to which the plan minimizes permanent 
     displacement of current residents of the public housing site 
     who wish to remain in or return to the revitalized community 
     and provides for community and supportive services to 
     residents prior to any relocation;
       ``(J) the extent to which the plan sustains or creates more 
     project-based housing units available to persons eligible for 
     public housing in markets where the plan shows there is 
     demand for the maintenance or creation of such units;
       ``(K) the extent to which the plan gives to existing 
     residents priority for occupancy in dwelling units which are 
     public housing dwelling units, or for residents who can 
     afford to live in other units, priority for those units in 
     the revitalized community; and''.
       (b) Definition of Severely Distressed Public Housing.--
     Section 24(j)(2)(A)(iii) of the United States Housing Act of 
     1937 (42 U.S.C. 1437v(j)(2)(A)(iii)) is amended--
       (1) in subclause (I), by striking ``or'' at the end;
       (2) in subclause (II), by inserting ``or'' after the 
     semicolon at the end; and
       (3) by inserting at the end the following:
       ``(III) is lacking in sufficient appropriate 
     transportation, supportive services, economic opportunity, 
     schools, civic and religious institutions, and public 
     services, resulting in severe social distress in the 
     project;''.
       (c) Study of Elderly and Disabled Public Housing Needs.--
     Not later than 18 months after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit a report to Congress regarding the extent of severely 
     distressed elderly and non-elderly disabled public housing, 
     and recommendations for improving that housing through the 
     HOPE VI program or other means, taking into account the 
     special needs of the residents.
       (d) Authorization of Appropriations.--Paragraph (1) of 
     section 24(m) of the United States Housing Act of 1937 (42 
     U.S.C. 1437v(m)(1)) is amended by striking ``, 2001, and 
     2002'' and inserting ``through 2006''.
       (e) Extension of Program.--Section 24(n) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437v(n)) is amended by 
     striking ``September 30, 2004'' and inserting ``September 30, 
     2006''.

     SEC. 403. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING 
                   THROUGH MAIN STREET PROJECTS.

       (a)  Purposes.--Section 24(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437v(a)) is amended by adding after 
     and below paragraph (4) the following:

     ``It is also the purpose of this section to provide 
     assistance to smaller communities for the purpose of 
     facilitating the development of affordable housing for low-
     income families that is undertaken in connection with a main 
     street revitalization or redevelopment project in such 
     communities.''.
       (b) Grants for Assisting Affordable Housing Developed 
     Through Main Street Projects in Smaller Communities.--Section 
     24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) 
     is amended--
       (1) by redesignating subsection (n) as subsection (o); and
       (2) by inserting after subsection (m) the following new 
     subsection:
       ``(n) Grants for Assisting Affordable Housing Developed 
     Through Main Street Projects in Smaller Communities.--
       ``(1) Authority and use of grant amounts.--The Secretary 
     may make grants under this subsection to smaller communities. 
     Such grant amounts shall be used by smaller communities only 
     to provide assistance to carry out eligible affordable 
     housing activities under paragraph (4) in connection with an 
     eligible project under paragraph (2).
       ``(2) Eligible project.--For purposes of this subsection, 
     the term `eligible project' means a project that--
       ``(A) the Secretary determines, under the criteria 
     established pursuant to paragraph (3), is a main street 
     project;
       ``(B) is carried out within the jurisdiction of smaller 
     community receiving the grant; and
       ``(C) involves the development of affordable housing that 
     is located in the commercial area that is the subject of the 
     project.
       ``(3) Main street projects.--The Secretary shall establish 
     requirements for a project to be consider a main street 
     project for purposes of this section, which shall require 
     that the project--
       ``(A) has as its purpose the revitalization or 
     redevelopment of a historic or traditional commercial area;
       ``(B) involves investment, or other participation, by the 
     government for, and private entities in, the community in 
     which the project is carried out; and
       ``(C) complies with such historic preservation guidelines 
     or principles as the Secretary shall identify to preserve 
     significant historic or traditional architectural and design 
     features in the structures or area involved in the project.
       ``(4) Eligible affordable housing activities.--For purposes 
     of this subsection, the activities described in subsection 
     (d)(1) shall be considered eligible affordable housing 
     activities, except that--
       ``(A) such activities shall be conducted with respect to 
     affordable housing rather than with respect to severely 
     distressed public housing projects; and
       ``(B) eligible affordable housing activities under this 
     subsection shall not include the activities described in 
     subparagraphs (B) through (E), (J), or (K) of subsection 
     (d)(1).
       ``(5) Maximum grant amount.--A grant under this subsection 
     for a fiscal year for a single smaller community may not 
     exceed $1,000,000.
       ``(6) Contribution requirement.--A smaller community 
     applying for a grant under this subsection shall be 
     considered an applicant for purposes of subsection (c) 
     (relating to contributions by applicants), except that--
       ``(A) such supplemental amounts shall be used only for 
     carrying out eligible affordable housing activities; and
       ``(B) paragraphs (1)(B) and (3) shall not apply to grants 
     under this subsection.
       ``(7) Applications and selection.--
       ``(A) Application.--Pursuant to subsection (e)(1), the 
     Secretary shall provide for smaller communities to apply for 
     grants under this subsection, except that the Secretary may 
     establish such separate or additional criteria for 
     applications for such grants as may be appropriate to carry 
     out this subsection.
       ``(B) Selection criteria.--The Secretary shall establish 
     selection criteria for the award of grants under this 
     subsection, which shall be based on the selection criteria 
     established pursuant to subsection (e)(2), with such changes 
     as may be appropriate to carry out the purposes of this 
     subsection.
       ``(8) Cost limits.--The cost limits established pursuant to 
     subsection (f) shall apply to eligible affordable housing 
     activities assisted with grant amounts under this subsection.
       ``(9) Inapplicability of other provisions.--The provisions 
     of subsections (g) (relating to disposition and replacement 
     of severely distressed public housing), and (h) (relating to 
     administration of grants by other entities), shall not apply 
     to grants under this subsection.
       ``(10) Reporting.--The Secretary shall require each smaller 
     community receiving a grant under this subsection to submit a 
     report regarding the use of all amounts provided under the 
     grant.
       ``(11) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Affordable housing.--The term `affordable housing' 
     means rental or homeownership dwelling units that--
       ``(i) are made available for initial occupancy to low-
     income families, with a subset

[[Page 31310]]

     of units made available to very- and extremely-low income 
     families; and
       ``(ii) are subject to the same rules regarding occupant 
     contribution toward rent or purchase and terms of rental or 
     purchase as dwelling units in public housing projects 
     assisted with a grant under this section.
       ``(B) Smaller community.--The term `smaller community' 
     means a unit of general local government (as such term is 
     defined in section 102 of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5302)) that--
       ``(i) has a population of 50,000 or fewer; and
       ``(ii)(I) is not served by a public housing agency; or
       ``(II) is served by a single public housing agency, which 
     agency administers 100 or fewer public housing dwelling 
     units.''.
       (c) Annual Report.--Section 24(l) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437v(l)) is amended--
       (1) in paragraph (3), by striking ``; and'' and inserting 
     ``, including a specification of the amount and type of 
     assistance provided under subsection (n);'';
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following:
       ``(4) the types of projects funded, and number of 
     affordable housing dwelling units developed with, grants 
     under subsection (n); and''.
       (d) Funding.--Section 24(m) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437v(m)) is amended by adding at the 
     end the following:
       ``(3) Set-aside for main street housing grants.--Of the 
     amount appropriated pursuant to paragraph (1) for any fiscal 
     year, the Secretary shall provide up to 5 percent for use 
     only for grants under subsection (n).''.

              TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

     SEC. 501. FUNDING FOR INSULAR AREAS.

       (a) Definition of Insular Areas.--Section 102(a) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5302(a)) is amended by adding at the end the following:
       ``(24) The term `insular area' means each of Guam, the 
     Northern Mariana Islands, the Virgin Islands, and American 
     Samoa.''.
       (b) Definition of Unit of General Government.--The first 
     sentence of section 102(a)(1) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5302(a)(1)) is amended--
       (1) by inserting ``and'' after ``Secretary;''; and
       (2) by striking ``; and the Trust Territory of the Pacific 
     Islands''.
       (c) Statement of Activities and Review.--Section 104 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5304) is amended--
       (1) in subsection (a)(1)--
       (A) in the first sentence--
       (i) by striking ``or'' after ``State,''; and
       (ii) by inserting ``or under section 106(a)(3) by any 
     insular area,'' after ``government,''; and
       (B) in the second sentence--
       (i) by striking ``and in the case of'' and inserting a 
     comma; and
       (ii) by inserting ``and insular areas receiving grants 
     pursuant to section 106(a)(3),'' after ``106(d)(2)(B),'';
       (2) in subsection (e)(1), by striking ``section 106(b) or 
     section 106(d)(2)(B)'' and inserting ``subsection (a)(3), 
     (b), or (d)(2)(B) of section 106''; and
       (3) in subsection (m)--
       (A) in paragraph (1), by inserting ``(a)(2),'' after 
     ``under subsection''; and
       (B) in paragraph (2), by striking ``government--'' and 
     inserting ``government other than an insular area--''.
       (d) Allocation and Distribution of Funds.--Section 106(a) 
     of the Housing and Community Development Act of 1974 (42 
     U.S.C. 5306(a)) is amended--
       (1) in the first sentence of paragraph (1)--
       (A) by striking ``an appropriation Act'' and inserting 
     ``appropriation Acts''; and
       (B) by striking ``in any year'' and inserting ``for such 
     fiscal year'';
       (2) in paragraph (2), by inserting ``under paragraph (1) 
     and after reserving such amounts for insular areas under 
     paragraph (2)'' after ``tribes'';
       (3) in paragraph (3), by striking ``paragraphs (1) and 
     (2)'' and inserting ``paragraphs (1), (2), and (3)''
       (4) by redesignating paragraphs (2) and (3) (as so amended) 
     as paragraphs (3) and (4); and
       (5) by inserting after paragraph (1) the following:
       ``(2) For each fiscal year, of the amount approved in 
     appropriation Acts under section 103 for grants for such 
     fiscal year (excluding the amounts provided for use in 
     accordance with section 107), the Secretary shall reserve for 
     grants to insular areas $7,000,000. The Secretary shall 
     provide for distribution of amounts under this paragraph to 
     insular areas on the basis of the ratio of the population of 
     each insular area to the population of all insular areas. In 
     determining the distribution of amounts to insular areas, the 
     Secretary may also include other statistical criteria as data 
     become available from the Bureau of the Census, but only if 
     such criteria are contained in a regulation promulgated by 
     the Secretary after notice and public comment.''.
       (e) Conforming Amendment.--The first sentence of section 
     106(d)(1) of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5306(d)(1)) is amended by striking 
     ``paragraphs (1) and (2)'' and inserting ``paragraphs (1), 
     (2), and (3)''.
       (f) 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 subparagraph (A); and
       (B) by redesignating subparagraphs (B) through (H) as 
     subparagraphs (A) through (G), respectively; and
       (2) in subsection (b)--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (7) as 
     paragraphs (1) through (6), respectively.
       (g) Regulations.--The Secretary of Housing and Urban 
     Development shall issue regulations to carry out the 
     amendments made by this section, which shall take effect not 
     later than the expiration of the 90-day period beginning on 
     the date of the enactment of this Act.

                          ____________________