[Congressional Record (Bound Edition), Volume 149 (2003), Part 23]
[House]
[Pages 32144-32148]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     AMERICAN DREAM DOWNPAYMENT ACT

  Mr. LEACH. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate 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, and ask for its 
immediate consideration in the House.
  The SPEAKER pro tempore (Mr. Renzi). The Chair has been informed that 
this request has been cleared by both leaderships under the Speaker's 
guidelines.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  The Clerk read the Senate bill, as follows:

                                 S. 811

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

     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.
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.

[[Page 32145]]

       ``(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

     SEC. 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)).
       (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.

[[Page 32146]]



     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--
       (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:

[[Page 32147]]

       ``(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 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--

[[Page 32148]]

       (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.

  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

                          ____________________