[House Report 104-281]
[From the U.S. Government Publishing Office]



                                                                       
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-281
_______________________________________________________________________


 
     SENIOR CITIZENS HOUSING SAFETY AND ECONOMIC RELIEF ACT OF 1995

_______________________________________________________________________


October 18, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


   Mr. Leach, from the Committee on Banking and Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 117]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Banking and Financial Services, to whom was 
referred the bill (H.R. 117) to amend the United States Housing 
Act of 1937 to prevent persons having drug or alcohol use 
problems from occupying dwelling units in public housing 
projects designated for occupancy by elderly families, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Senior Citizens Housing Safety and 
Economic Relief Act of 1995''.

SEC. 2. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO PROHIBIT ADMISSION OF 
                    DRUG OR ALCOHOL ABUSERS TO ASSISTED HOUSING.

  Section 16 of the United States Housing Act of 1937 (42 U.S.C. 1437n) 
is amended--
          (1) in the section heading by striking ``income''; and
          (2) by adding at the end the following new subsection:
  ``(e) Authority to Limit Admission of Drug or Alcohol Abusers.--
          ``(1) In general.--Notwithstanding any other provision of 
        law, a public housing agency may establish standards for 
        occupancy in public housing dwelling units and assistance under 
        section 8, that prohibit admission to such units and assistance 
        under such section by any individual--
                  ``(A) who currently illegally uses a controlled 
                substance; or
                  ``(B) whose history of illegal use of a controlled 
                substance or use of alcohol, or current use of alcohol, 
                provides reasonable cause for the agency to believe 
                that the occupancy by such individual may interfere 
                with the health, safety, or right to peaceful enjoyment 
                of the premises by other residents.
          ``(2) Consideration of Rehabilitation.--In determining 
        whether, pursuant to paragraph (1), to deny admission or 
        assistance to any elderly person based on a history of use of a 
        controlled substance or alcohol, a public housing agency may 
        consider whether such elderly person--
                  ``(A) has successfully completed a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or use of alcohol (as applicable);
                  ``(B) has otherwise been rehabilitated successfully 
                and is no longer engaging in the illegal use of a 
                controlled substance or use of alcohol (as applicable); 
                or
                  ``(C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or use of alcohol (as applicable).''.

SEC. 3. DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES.

  (a) In General.--Section 7 of the United States Housing Act of 1937 
(42 U.S.C. 1437e) is amended to read as follows:
         ``designated housing for elderly and disabled families
  ``Sec. 7. (a) Authority To Provide Designated Housing.--
          ``(1) In general.--Subject only to provisions of this section 
        and notwithstanding any other provision of law, a public 
        housing agency for which a plan under subsection (d) is in 
        effect may provide public housing projects (or portions of 
        projects) designated for occupancy by (A) only elderly 
        families, (B) only disabled families, or (C) elderly and 
        disabled families.
          ``(2) Priority for occupancy.--In determining priority for 
        admission to public housing projects (or portions of projects) 
        that are designated for occupancy as provided in paragraph (1), 
        the public housing agency may make units in such projects (or 
        portions) available only to the types of families for whom the 
        project is designated.
          ``(3) Eligibility of near-elderly families.--If a public 
        housing agency determines that there are insufficient numbers 
        of elderly families to fill all the units in a project (or 
        portion of a project) designated under paragraph (1) for 
        occupancy by only elderly families, the agency may provide that 
        near-elderly families may occupy dwelling units in the project 
        (or portion).
          ``(4) Limitation on occupancy in projects for elderly 
        families.--
                  ``(A) In general.--Subject only to the provisions of 
                subsection (b) and notwithstanding any other provision 
                of law, a dwelling unit in a project (or portion of a 
                project) that is designated under paragraph (1) for 
                occupancy by only elderly families or by only elderly 
                and disabled families shall not be occupied by any 
                individual who is not an elderly person and--
                          ``(i) who currently illegally uses a 
                        controlled substance; or
                          ``(ii) whose history of illegal use of a 
                        controlled substance or use of alcohol, or 
                        current use of alcohol, provides reasonable 
                        cause for the agency to believe that the 
                        occupancy by such individual may interfere with 
                        the health, safety, or right to peaceful 
                        enjoyment of the premises by other tenants.
                  ``(B) Consideration of rehabilitation.--In 
                determining whether, pursuant to subparagraph (A), to 
                deny occupancy to any individual based on a history of 
                use of a controlled substance or alcohol, a public 
                housing agency may consider the factors under section 
                16(e)(2).
  ``(b) Standards Regarding Evictions.--
          ``(1) Limitation.--Except as provided in paragraph (2), any 
        tenant who is lawfully residing in a dwelling unit in a public 
        housing project may not be evicted or otherwise required to 
        vacate such unit because of the designation of the project (or 
        portion of a project) pursuant to this section or because of 
        any action taken by the Secretary or any public housing agency 
        pursuant to this section.
          ``(2) Requirement to evict nonelderly tenants in housing 
        designated for elderly families who have current drug or 
        alcohol abuse problems.--The public housing agency 
        administering a project (or portion of a project) described in 
        subsection (a)(4)(A) shall evict any individual who occupies a 
        dwelling unit in such a project and who currently illegally 
        uses a controlled substance or whose current use of alcohol 
        provides a reasonable cause for the agency to believe that the 
        occupancy by such individual may interfere with the health, 
        safety, or right to peaceful enjoyment of the premises by other 
        residents. This paragraph may not be construed to require a 
        public housing agency to evict any other individual who 
        occupies the same dwelling unit as the individual required to 
        be evicted.
  ``(c) Relocation Assistance.--A public housing agency that designates 
any existing project or building, or portion thereof, for occupancy as 
provided under subsection (a) shall provide, to each person and family 
relocated in connection with such designation--
          ``(1) notice of the designation and relocation, as soon as is 
        practicable for the agency and the person or family;
          ``(2) comparable housing (including appropriate services and 
        design features), which may include tenant-based rental 
        assistance under section 8, at a rental rate that is comparable 
        to that applicable to the unit from which the person or family 
        has vacated; and
          ``(3) payment of actual, reasonable moving expenses.
  ``(d) Required Plan.--A plan under this subsection for designating a 
project (or portion of a project) for occupancy under subsection (a)(1) 
is a plan, prepared by the public housing agency for the project and 
submitted to the Secretary, that--
          ``(1) establishes that the designation of the project is 
        necessary--
                  ``(A) to achieve the housing goals for the 
                jurisdiction under the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act; and
                  ``(B) to meet the housing needs of the low-income 
                population of the jurisdiction; and
          ``(2) includes a description of--
                  ``(A) the project (or portion of a project) to be 
                designated;
                  ``(B) the types of tenants for which the project is 
                to be designated;
                  ``(C) any supportive services to be provided to 
                tenants of the designated project (or portion);
                  ``(D) how the agency will secure any additional 
                resources or housing assistance that is necessary to 
                provide assistance to nonelderly disabled families that 
                would have been housed if occupancy in project were not 
                restricted pursuant to this section; and
                  ``(E) how the design and related facilities (as such 
                term is defined in section 202(d)(8) of the Housing Act 
                of 1959) of the project accommodate the special 
                environmental needs of the intended occupants.
For purposes of this subsection, the term `supportive services' means 
services designed to meet the special needs of residents.
  ``(e) Review of Plans.--
          ``(1) Review and notification.--The Secretary shall conduct a 
        limited review of each plan under subsection (d) that is 
        submitted to the Secretary to ensure that the plan is complete 
        and complies with the requirements of subsection (d). The 
        Secretary shall notify each public housing agency submitting a 
        plan whether the plan complies with such requirements not later 
        than 60 days after receiving the plan. If the Secretary does 
        not notify the public housing agency, as required under this 
        paragraph or paragraph (2), the plan shall be considered, for 
        purposes of this section, to comply with the requirements under 
        subsection (d) and the Secretary shall be considered to have 
        notified the agency of such compliance upon the expiration of 
        such 60-day period.
          ``(2) Notice of reasons for determination of noncompliance.--
        If the Secretary determines that a plan, as submitted, does not 
        comply with the requirements under subsection (d), the 
        Secretary shall specify in the notice under paragraph (1) the 
        reasons for the noncompliance and any modifications necessary 
        for the plan to meet such requirements.
          ``(3) Standards for determination of noncompliance.--The 
        Secretary may determine that a plan does not comply with the 
        requirements under subsection (d) only if--
                  ``(A) the plan is incomplete in significant matters 
                required under such subsection; or
                  ``(B) there is evidence available to the Secretary 
                that challenges, in a substantial manner, any 
                information provided in the plan.
          ``(4) Treatment of existing plans.--Notwithstanding any other 
        provision of this section, a public housing agency shall be 
        considered to have submitted a plan under this subsection if 
        the agency has submitted to the Secretary an application and 
        allocation plan under this section (as in effect before the 
        date of the enactment of the Senior Citizens Housing Safety and 
        Economic Relief Act of 1995) that have not been approved or 
        disapproved before such date of enactment.
  ``(f) Effectiveness.--
          ``(1) 5-year effectiveness of plan.--A plan under subsection 
        (d) shall be in effect for purposes of this section only during 
        the 5-year period that begins upon notification under 
        subsection (e)(1) of the public housing agency that the plan 
        complies with the requirements under subsection (d). An agency 
        may extend the effectiveness of the designation and plan for an 
        additional 2-year period beginning upon the expiration of such 
        period (or the expiration of any previous extension period 
        under this sentence) by submitting to the Secretary any 
        information needed to update such plan.
          ``(2) Savings provision.--Any application and allocation plan 
        approved under this section (as in effect before the date of 
        the enactment of the Senior Citizens Housing Safety and 
        Economic Relief Act of 1995) before such date of enactment 
        shall be considered to be a plan under subsection (d) that is 
        in effect for purposes of this section for the 5-year period 
        beginning upon such approval.
  ``(g) Inapplicability of Uniform Relocation Assistance and Real 
Property Acquisitions Policy Act of 1970.--No tenant of a public 
housing project shall be considered to be displaced for purposes of the 
Uniform Relocation Assistance and Real Property Acquisitions Policy Act 
of 1970 because of the designation of any existing project or building, 
or portion thereof, for occupancy as provided under subsection (a) of 
this section.
  ``(h) Inapplicability to Indian Housing.--The provisions of this 
section shall not apply with respect to low-income housing developed or 
operated pursuant to a contract between the Secretary and an Indian 
housing authority.''.
  (b) Lease Provisions.--Section 6(l) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(l)) is amended--
          (1) by redesignating paragraph (6) as paragraph (7); and
          (2) by inserting after paragraph (5) the following new 
        paragraph:
          ``(6) provide that any occupancy in violation of the 
        provisions of section 7(a)(4) shall be cause for termination of 
        tenancy; and''.

SEC. 4. STANDARDS FOR ASSISTED HOUSING LEASE TERMINATION AND EXPEDITED 
                    GRIEVANCE PROCEDURE.

  (a) Public Housing Agency Grievance Procedure.--Section 6(k) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(k)) is amended, in 
the first sentence of the matter following paragraph (6), by striking 
``criminal'' the first place it appears and all that follows through 
``such premises'' and inserting ``activity described in subsection 
(l)(5) of this section or section 8(d)(1)(B)(iii)''.
  (b) Public Housing Leases.--Section 6(l) of the United States Housing 
Act of 1937 (42 U.S.C. 1437d(l)) is amended by striking paragraphs (4) 
and (5) and inserting the following new paragraphs:
          ``(4) require that the public housing agency may not 
        terminate the tenancy except for violation of the terms or 
        conditions of the lease, violation of applicable Federal, 
        State, or local law, or for other good cause;
          ``(5) provide that the public housing agency may terminate 
        the tenancy of a public housing resident for any activity, 
        engaged in by the resident, any member of the resident's 
        household, or any guest or other person under the resident's 
        control, that--
                  ``(A) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other residents 
                or employees of the public housing agency or other 
                manager of the housing;
                  ``(B) threatens the health or safety of, or right to 
                peaceful enjoyment of their premises by, persons 
                residing in the immediate vicinity of the premises; or
                  ``(C) is criminal activity (including drug-related 
                criminal activity);''.
  (c) Section 8 Housing Leases.--Section 8(d)(1)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(B)) is amended by 
striking clauses (ii) and (iii) and inserting the following new 
clauses:
          ``(ii) the owner shall not terminate the tenancy except for 
        violation of the terms and conditions of the lease, violation 
        of applicable Federal, State, or local law, or other good 
        cause;
          ``(iii) the owner may terminate the tenancy of the tenant of 
        a unit for any activity, engaged in by the tenant, any member 
        of the tenant's household, or any guest or other person under 
        the tenant's control, that--
                  ``(I) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other tenants or 
                employees of the owner or manager of the housing;
                  ``(II) threatens the health or safety of, or right to 
                peaceful enjoyment of their residences by, persons 
                residing in the immediate vicinity of the premises; or
                  ``(III) is criminal activity (including drug-related 
                criminal activity); and''.

SEC. 5. EXTENSION OF FHA MORTGAGE INSURANCE PROGRAM FOR HOME EQUITY 
                    CONVERSION MORTGAGES.

  (a) Extension of Program.--The first sentence of section 255(g) of 
the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking 
``September 30, 1995'' and inserting ``September 30, 2000''.
  (b) Limitation on Number of Mortgages.--The second sentence of 
section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
amended by striking ``25,000'' and inserting ``50,000''.
  (c) Eligible Mortgages.--Section 255(d)(3) of the National Housing 
Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as follows:
          ``(3) be secured by a dwelling that is designed principally 
        for a 1- to 4-family residence in which the mortgagor occupies 
        1 of the units;''.

                  Background and Need for Legislation

  Provisions Concerning Drug or Alcohol Abusers in Public Housing and 
                       Section 8 Assisted Housing

    Currently, public housing and other assisted housing 
programs are designed to provide housing for elderly families 
separate from family housing. The elderly housing developments 
are open to eligible individuals over 62 years of age, or 
single people of any age who have mental or physical 
disabilities according to the American With Disabilities Act.
    The mixing of populations has led to a number of problems 
that our senior citizens should not tolerate. Many elderly 
residents who anticipated a quiet, all-elderly environment are 
frightened and disturbed, experience clashes in lifestyles, and 
tend to find an increase in complaints proportionate to the 
increase in the building's young and disabled population. 
Moreover, young disabled people in these elderly developments 
are dissatisfied as well. Some complain that their elderly 
neighbors treat them with suspicion and resentment.
    In 1992, Congress responded to reports that including non-
elderly handicapped and disabled persons in housing occupied by 
elderly persons was creating difficulties and personal safety 
problems and disrupting management. This response resulted in a 
considerable effort to re-write the laws regarding mixed 
populations in Title VI of the Housing and Community 
Development Act of 1992 (Pub. H. 102-550).
    Under Title VI, public housing authorities and federally 
assisted apartment owners could designate certain buildings as 
``elderly only'' so long as they implemented a plan to provide 
alternative housing for those non-elderly residents who were 
eligible for federally assisted housing and who otherwise may 
have been eligible for a unit in an elderly building. The 
Committee, however, was very clear that current non-elderly 
residents could not be evicted without cause and that Public 
Housing Authorities [PHA] or landlords could not leave units 
vacant for excessive periods of time while seeking eligible 
elderly tenants. After a pre-determined time period, the PHA or 
landlord was expected to fill a vacant unit with either an 
elderly resident or the next eligible resident on the waiting 
list, elderly or not.
    According to the HUD Inspector General, HUD's rules 
implementing Title VI have proven overly burdensome and 
complicated for PHAs attempting to receive ``elderly only'' 
designations. In fact, out of 3,400 PHAs, only 10 such plans 
have been approved by HUD.
    While the provisions of the 1992 Act represented a step in 
the right direction, the Committee has been made aware that 
serious problems persist. This problem is especially true in 
buildings where the current level of non-elderly residents 
remains high or where non-elderly tenants continue to be 
admitted. Elderly residents continue to expect quiet, trouble-
free, all-elderly environments but are continually frightened 
and concerned over the presence of a small and growing minority 
of unruly non-elderly residents.
    In an effort to address a recognized flaw in Title VI that 
non-elderly tenants be admitted to an elderly building when no 
eligible elderly person is available, Representative Grams, in 
the 103d Congress, offered an amendment during the subcommittee 
markup of H.R. 3838, the Housing and Community Development Act 
of 1994, to prohibit occupancy by substance abusers and 
alcoholics in mixed population housing. After considerable 
debate and subsequent discussion, a modified Grams amendment 
was accepted at full committee. This amendment provided 
expedited eviction proceedings if a resident's behavior 
``constitutes a threat to the health, safety, or right to 
peaceful enjoyment of the premises.'' This provision would be 
particularly important in those situations where young, 
disabled persons engage in inappropriate conduct, including 
drug-related activities.
    During floor consideration of the Housing and Community 
Development Act of 1994, Representative Blute offered an 
amendment, which passed by voice vote, that requires a 
screening process to prevent non-elderly former substance 
abusers from being accepted into senior facilities. The 
amendment would have forced the eviction of non-elderly 
residents in these facilities who commit crimes or cause 
disturbances that affect the health, safety, or well being of 
other residents after three documented infractions. The 
amendment did not take effect because the Senate failed to pass 
a Housing bill before the close of the 103d Congress.
    As originally introduced on January 4, 1995, H.R. 117, the 
Senior Citizens Housing Safety Act of 1995, prohibits the 
placement of current or former drug and alcohol abusers in 
public housing that is designated for elderly or elderly and 
disabled families, notwithstanding any other provisions of law.

         Provisions Concerning Home Equity Conversion Mortgages

    The Home Equity Conversion Mortgage [HECM] Insurance 
Demonstration was authorized by Section 417 of the Housing and 
Community Development Act of 1987, which amended Section 255 of 
the National Housing Act to permit elderly homeowners to borrow 
against the equity in their home. These loans are originated by 
FHA-approved lenders and subsequently purchased by the 
secondary market.
    A reverse mortgage is a loan against the value of a home, 
for which the borrower is not required to make payments until 
the home is sold. There are four ways that a Senior can access 
cash through the reverse mortgage--lump sum, line of credit to 
be tapped by personal checks, a monthly payment in the form of 
a lifetime guaranteed monthly payment, or a combination of 
monthly payments and line of credit options.
    Borrowers must be at least 62 years old to qualify. The 
median age of HECM borrowers has been 76 years old, with most 
borrowers between 71 and 81 years old, and 5 percent of 
borrowers over 90 years old. These HECM borrowers usually have 
below average income at approximately $10,368, with Social 
Security income approximately at $8,126.
    The borrower retains ownership of the property and may sell 
the home and move at any time, keeping the sales proceeds in 
excess of the mortgage balance. An FHA-insured reverse mortgage 
need not be repaid until the borrower moves, sells, or dies. 
When the loan is due and payable, if the loan balance exceeds 
the value of the property, the borrower (or the heirs) will owe 
no more than the value of the property.
    In a March 15, 1995 report to Congress entitled 
``Evaluation of the Home Equity Conversion Mortgage Insurance 
Demonstration'', HUD noted that approximately 300 to 400 HECM 
loans are closed each month, totalling approximately 13,000 
HECM loans closed. There have been 550 loans terminated, of 
which 37 percent can be specifically identified as being due to 
death of the borrower, 34 percent due to the borrower moving 
out of the mortgage property, and 8 percent due to a pay off in 
which the borrower remained in the property. The reasons for 
the termination of the remaining 21 percent are not known, 
although HUD suspects that some of these are due to unreported 
deaths.
    FHA's authority to insure reverse mortgages under the HECM 
demonstration program lapsed on Oct. 1 of this year. H.R. 1934, 
Housing Subcommittee Chairman Lazio's Home Equity Conversion 
Mortgage Program Extension Act of 1995, extends the HECM 
program for another 5 years through September 30, 2000. It also 
allows FHA to insure reverse mortgages on 1- to 4-family homes, 
in which a HECM-eligible owner resides.
    Acceptance for this program is growing rapidly, but FHA 
insurance authority is necessary until the program is fully 
accepted by the private sector.
    The House passed VA/HUD Appropriations bill for fiscal 1996 
proposes to extend the HECM program for one year. By including 
this legislation as part of the Senior Citizens Housing Safety 
and Economic Relief Act of 1995, the Committee believes it can 
avoid any lapses in this very useful and effective program now 
or at the end of fiscal year 1996.

                   Purpose and Summary of Legislation

        authority to limit admission of drug and alcohol abusers

    Currently, the admissions screening and termination 
policies in public and assisted housing are inadequate and, 
sometimes, are not enforced. The purpose of H.R. 117, the 
Senior Citizens Housing and Economic Relief Act of 1995, is to 
strengthen these policies and protect the residents of public 
and assisted housing, particularly senior citizens and 
children, from the problems associated with drug addicts and 
alcoholics.
    To accomplish this purpose, Public Housing Authorities 
[PHAs] may decide against providing housing assistance to 
individuals who are currently using drugs.\1\ Additionally, 
individuals with a history of abuse of drugs or alcohol, or who 
currently use alcohol, may not receive assistance if the PHA 
has reasonable cause to believe they would interfere with the 
health, safety or right to peaceful enjoyment of the premises 
by other residents. Clearly, the requirement of ``reasonable 
cause'' allows PHAs to consider whether applicants have 
successfully completed or continue to participate in a 
supervised rehabilitation program.
    \1\ The Fair Housing Amendments Act, Section 504 of the 
Rehabilitation Act and the Americans With Disabilities Act explicitly 
exclude from the definition of a person with a disability any 
individual who is currently engaged in the illegal use of a controlled 
substance. Nothing in this legislation should be construed to imply 
that current users of illegal drugs are eligible as persons with 
disabilities for purposes of housing programs. Additionally, the 
legislation should not be construed to imply that residents or 
applicants for assistance who are classified as mentally disabled 
because of a previous abuse of drugs or alcohol are no longer 
considered disabled for purposes of housing programs.
---------------------------------------------------------------------------
    To ensure that elderly applicants, who are recovering 
addicts, are eligible for assistance, the legislation 
explicitly provides that PHAs may consider whether the 
applicant has successfully completed or continues to 
participate in a supervised drug or alcohol treatment program. 
Moreover, the PHA cannot preclude an elderly person from 
receiving assistance if there is no reason to believe that an 
individual not currently using drugs or alcohol will endanger 
residents or employees of public or assisted housing, or will 
not display behavior that interferes with the peaceful 
enjoyment of the premises by other residents.
    To prevent arbitrary actions by a PHA to preclude an 
eligible resident from receiving assistance, safeguards are 
established in the legislation. PHAs must establish uniform 
occupancy standards, rules and regulations about their 
admissions policies for every resident, including persons with 
histories of drug or alcohol abuse. The standards adopted will 
form the basis for determining how and when individuals can be 
excluded from occupancy based on their past history of abuse. 
For example, PHAs could request information about the 
applicant's recovery and behavior from sources such as social 
workers, rehabilitation specialists, former landlords, and 
probation officers. PHAs could also consider whether the 
individual has been a recovering addict for a substantial 
period of time.
    The Committee cannot emphasize strongly enough, however, 
that PHAs must have the ultimate decision-making authority 
related to administering their admissions and occupancy 
standards. After all, it is the PHA that is in the position of 
confirming that an applicant is statutorily eligible to receive 
the assistance and can comply with the provisions of the lease 
agreement.
    PHAs must proactively create fair, but stringent admissions 
and occupancy standards to maintain a quality living 
environment for every resident. Additionally, performance and 
behavior admission requirements must be clearly defined in the 
lease. Applicant screening methods should be targeted toward 
determining the likelihood that any applicant will be able to 
meet the essential requirements of tenancy as expressed in the 
lease, which include:
          (1) paying the rent;
          (2) using facilities and equipment reasonably and 
        safely;
          (3) not interfering with the rights and enjoyment of 
        others, and not damaging the property of others;
          (4) complying with the rules and regulations of the 
        PHA and with health and safety codes;
          (5) not engaging in activities that threaten the 
        health, safety, or right to peaceful enjoyment of other 
        residents; and,
          (6) not engaging in criminal activities on or near 
        the premises.

                           designated housing

    Title VI of the Housing and Community Development Act of 
1992 establishes the process PHA's must follow to designate 
housing as senior-only, disabled-only, or senior and disabled-
only. These provisions are burdensome and overly-restrictive as 
well as micromanaged by Federal bureaucrats. To end this 
situation, the Committee adopted an amendment enhancing the 
authority of PHAs to use their discretion to designate housing 
for certain populations. The legislation deregulates housing 
authorities and streamlines the process by which authorities 
may designate housing for specific populations.
    There is widespread agreement by senior citizens, the 
housing industry, and Congress that, in buildings designated 
for elderly families, PHAs must be allowed to limit occupancy 
only to senior citizens. Since 1988, when the Fair Housing Act 
Amendments expanded the definition of ``disabled'' to include 
former abusers of drugs and alcohol, young substance abusers 
have been mixed-in with frail seniors in public and assisted 
housing. According to the American Association of Retired 
Persons [AARP], mixing young persons (even though classified as 
mentally disabled) in apartment complexes with single women who 
are, on average, 76 years old, has dramatically changed a 
strong, supportive atmosphere into one filled with disruption 
and fear.
    Moreover, Ms. Susan Gaffney, the HUD Inspector General 
[IG], in an October 12, 1995, letter to the Committee, stated 
that the existing system invites abuse by criminals who wish to 
conduct their drug activities in the relatively secure 
environment of senior-only apartment buildings. According to 
the IG, ``[c]riminals who are bent on `beating the system' can 
easily defer illegal drug use for a brief period and enter a 
rehabilitation program.'' Once in a rehabilitation program, 
these persons claim ``disabled'' status as recovering drug 
abusers and are eligible to be admitted to elderly public 
housing or section 8 housing.
    The IG's concern is not unsubstantiated. For example, the 
IG related that Gerald McHale, Deputy Superintendent of the 
Boston Police Department, has made her aware of situations 
where drug users qualify as ``disabled'' after entering a drug 
rehabilitation program for as little as 30 days. After gaining 
admission to senior housing, the ``disabled'' drug users and 
their associates begin functioning from formerly quiet elderly 
residential areas that now serve as secure locations for drug 
trafficking. These observations are consistent with comments 
from representatives of the International Association of Chiefs 
of Police.
    The Committee Print allows housing authorities to limit 
occupancy in designated housing to the type of resident for 
which the building is designated. Clearly, senior citizens 
disabled by a former addiction are not automatically excluded 
from admission unless the PHA can show that they would 
interfere with the peaceful enjoyment of the premises by other 
senior citizens. To ensure this policy, the legislation 
explicitly provides PHAs with the option of considering a 
former abuser's rehabilitation record when deciding whether to 
preclude them from living in public or assisted housing. 
Additionally, housing authorities may provide relocation 
assistance to families who are not abusing drugs or alcohol or 
displaying inappropriate behavior but who no longer are 
eligible to remain in a designated building by providing them 
with comparable public housing or by providing a Section 8 
certificate or voucher.
    Many PHAs are reluctant to evict residents classified 
``disabled'' even when those residents have returned to a life 
of addition. The Committee reiterates that no law protects 
current users of illegal controlled substances. Evictions of 
these persons should be pursued aggressively and quickly.
    The legislation also limits HUD's authority to disapprove a 
PHA's five-year designation plan. Plans may not be disapproved 
by HUD unless they are incomplete in a substantial manner, or 
HUD can prove the information required to be in the plan is 
inaccurate. By this action, the Committee acknowledges that 
local decisions are preferable to federal micromanagement.

    Standards for Assisted Housing Lease Termination and Expedited 
                          Grievance Procedure

    The Committee Print provides PHAs with the authority to 
amend and change existing and future leases to allow tenancy to 
be terminated if leaseholders, their family members, or their 
guests, act inappropriately or engage in any kind of criminal 
behavior. ``Actual knowledge'' by the leaseholder is not a 
precondition to lease termination if a family member or a guest 
engages in inappropriate behavior or criminal activity.
    While the Committee acknowledges that this authority is 
broad, it is not the Committee's intention that the authority 
be used arbitrarily or capriciously by a PHA. Nevertheless, the 
Committee expects every PHA to act aggressively to terminate 
the tenancy of residents who endanger other residents by their 
action or the actions of people who are their guests even if 
they do not commit the act themselves or have direct knowledge 
of the act.
    The Committee believes it is time to stop protecting 
individuals that violate their lease at the expense of their 
neighbors and the community environment; the priority for the 
PHA must be to provide for the peaceful enjoyment of the 
premises by the families who live there, especially senior 
residents. Only by taking these measures will Congress help to 
ensure that public and assisted housing does not continue to be 
perceived as ``housing of the last resort.''

               Home Equity Conversion Mortgage Extension

    The Home Equity Conversion Mortgage Extension lapsed on 
October 1, 1995. The VA/HUD Appropriations bill for fiscal year 
1996 proposes to extend the program for one year. The Committee 
recognizes that the reverse mortgage program's origination 
activity has significantly increased as many eligible seniors 
learn about the program. According to a HUD March 15, 1995 
report to Congress, the Department noted that approximately 300 
to 400 HECM loans are closed each month; there are 
approximately 13,000 closed HECM loans. Until the program is 
reauthorized, HUD will no longer be able to offer FHA insurance 
for many eligible seniors who need the equity to supplement 
their limited incomes.
    Additionally, the current law is inconsistent regarding 
eligible single family properties for FHA mortgage insurance. 
Section 203(b) of the National Housing Act provides authority 
for FHA to insure mortgages where there is an amortized 
schedule requiring payment over the life of the loan. Unlike 
the 203(b) program, which covers the most significant number of 
mortgages, the HECM program covers reverse mortgages where the 
loan will not be paid until the homeowner dies, sells or moves 
away from the mortgaged property. The 203(b) program recognizes 
as single family homes, properties with one to four units; the 
HECM program recognizes only one unit dwellings. Thus, the HECM 
program precludes an entire class of senior homeowners who may 
want access to the equity in an owner-occupied home with a 
maximum of four units.
    This legislation will extend the HECM program through 
September 30, 2000 and extends eligibility to 1- to 4-family 
homes, provided that it is the primary residence of the 
borrower.

                                Hearing

    The Committee on Banking and Financial Services held a 
hearing on ``The Senior Citizens Housing Safety and Economic 
Relief Act of 1995'' on October 12, 1995.
    Testifying before the Committee were: The Honorable Peter 
Blute; The Honorable Michael Patrick Flanagan; The Honorable 
James P. Moran; The Honorable Ray LaHood; Mr. John Mather, 
Chairman, Legislative Council, Massachusetts Chapter of the 
National Association of Housing and Redevelopment Officials; 
Ms. Anneliessa Belculfino, a senior citizen residing in public 
housing, Worcester, Massachusetts; and, Ms. Marion Johnson, an 
employee of the Elder Home Care, Worcester, Massachusetts. In 
addition, the Committee received letters of support for the 
Committee Print from the National Assisted Housing Management 
Association, the National Association of Home Builders, the 
American Association of Retired Persons, and American 
Association of Homes and Services for the Aging.

                   Committee Consideration and Votes

                      (Rule XI, Clause 2(1)(2)(B))

    On October 12, 1995, the Committee met in open session to 
mark up the Committee Print entitled the ``Senior Citizens 
Housing Safety and Economic Relief Act of 1995.'' The Committee 
considered, as original text for purposes of amendments, the 
Committee Print which incorporated the principles of H.R. 117, 
originally introduced by Mr. Blute, and H.R. 1934, originally 
introduced by Mr. Lazio.
    During the markup, the Committee approved 3 amendments by 
voice vote. The Committee also defeated 1 amendment by voice 
vote. Two amendments were withdrawn and a third amendment was 
withdrawn on the promise to work towards incorporating 
acceptable language in a floor amendment. Immediately following 
the mark up, the Committee called up H.R. 117 and moved to 
strike everything after the enacting clause and inserted the 
Committee Print, as amended.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings and recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI and clause 4(c)(2) of rule X of 
the Rules of the House of Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of rule XI of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority for increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    The cost estimate pursuant to Clause 2(l)(3)(C) of rule XI, 
of the Rules of the House of Representatives and Section 403 of 
the Congressional Budget Act of 1974 follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 18, 1995.
Hon. James A. Leach,
Chairman, Committee on Banking and Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 117, the Senior 
Citizens Housing Safety and Economic Relief Act of 1995, as 
ordered reported by the House Committee on Banking and 
Financial Services on October 12, 1995.
    The estimate shows the budgetary effects of the committee's 
proposals over the 1996-2000 period. This estimate assumes the 
bill will be enacted by November 15, 1995.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: H.R. 117.
    2. Bill title: Senior Citizens Housing Safety and Economic 
Relief Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Banking and Financial Services on October 12, 1995.
    4. Bill purpose: The bill would amend certain provisions in 
the United States Housing Act of 1937 that cover federal 
housing assistance provided to elderly and handicapped 
families. This bill also would extend the Federal Housing 
Administration's [FHA's] authority to insure reverse mortgages 
under the Home Equity Conversion Mortgage insurance program for 
another five years.
    5. Estimated cost to the Federal Government:

----------------------------------------------------------------------------------------------------------------
                                                                       1996     1997     1998     1999     2000 
----------------------------------------------------------------------------------------------------------------
Authorizations of Appropriations:                                                                               
    Extension of HECM Program:                                                                                  
        Estimated budget authority.................................       -7       -8       -8       -8       -8
        Estimated outlays..........................................       -7       -8       -8       -8       -8
----------------------------------------------------------------------------------------------------------------

    The costs of this bill would fall within budget function 
370.
    6. Basis of estimate: Sections 2, 3, and 4 of the bill 
would amend certain provisions of current law that authorize 
public housing and rental assistance for low-income families 
with elderly or disabled members. These amendments would give 
public housing agencies additional authority to develop and 
enforce standards for housing assistance, particularly in the 
areas of controlled substance use and alcohol abuse. The bill 
clarifies the conditions under which non-elderly persons with 
substance abuse problems can be evicted from housing projects 
intended to be for elderly or disabled persons exclusively. 
Agencies would also be provided further authority to keep 
projects or parts of projects for the use of elderly tenants. 
Implementation of these changes would have no significant 
impact on the federal budget.
    Section 5 of this bill would extend the Home Equity 
Conversion Mortgage program to September 30, 2000. Authority 
for this program lapsed on October 1, 1995. The bill also would 
enable FHA to insure up to 50,000 reverse mortgages over the 
1996-2000 period, thus adding about $3.5 billion in insured 
mortgages to the FHA portfolio over this period. This insured 
loan limit would allow FHA to expand the program by about 
35,000 mortgages from the current level of 15,000. Because this 
type of mortgage is estimated to have negative credit 
subsidies, any increase in volume would result in an outlay 
reduction to the appropriations from FHA's General and Special 
Risk Insurance program account. Over the 1996-2000 period, CBO 
estimates that this provision would result in an outlay 
reduction of about $39 million.
    7. Pay-as-you-go considerations: None.
    8. Estimated cost to State and local governments: None.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Suzanne Mehlman and Brent Shipp.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                    Congressional Accountability Act

    The reporting requirement under section 102(b)(3) of the 
Congressional Accountability Act (P.L. 104-1) is inapplicable 
because this legislation does not relate to terms and 
conditions of employment or access to public services or 
accommodations.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that H.R. 117 
will have no significant inflationary impact on prices and 
costs in the national economy.

                      Section-by-Section Analysis

    Section 1.--Short Title.--Establishes the title of the 
legislation: The ``Senior Citizens Housing Safety and Economic 
Relief Act of 1995.''
    Section 2.--Authority For Public Housing Agencies to 
Prohibit Admission of Drug or Alcohol Abusers to Assisted 
Housing.--Amends Section 16 of the United States Housing Act of 
1937, governing resident eligibility requirements. The 
legislation authorizes PHAs to establish occupancy standards 
that prohibit admission to federally assisted apartment 
buildings by applicants who currently use illegal drug. 
Additionally, the provision gives PHAs the authority to 
establish occupancy standards to preclude individuals whose 
history of illegal use of drugs, or whose use of alcohol 
creates a reasonable belief that the applicant may interfere 
with the health, safety or peaceful enjoyment of the facilities 
by families who reside in the apartment or apartment complex.
    In determining whether to deny housing assistance to an 
elderly person with a history of drug addiction or alcoholism, 
the PHA may consider whether the person successfully completed 
a rehabilitation program or is currently participating in a 
rehabilitation program.
    Section 3.--Designated Housing for Elderly and Disabled 
Families.--Amends Section 7 of the United States Housing Act of 
1937 by providing PHAs with authority to designate housing for 
occupancy by only elderly families, only disabled families, or 
elderly and disabled families and may establish priority for 
such housing based upon the type of family. Likewise, PHAs may 
choose to provide housing for near-elderly families if vacant 
apartments cannot be filled because there are insufficient 
numbers of elderly families.
    If a building is designated as senior-only, disabled-only, 
or senior and disabled housing, PHAs are required to prohibit 
admission or occupancy of the building by individuals (i) who 
currently use illegal controlled substances, or (ii) whose 
history of illegal use of controlled substances or alcohol or 
current use of alcohol provides reasonable cause for the agency 
to believe that they will interfere with the peaceful enjoyment 
of or safety of the residents who live in the facility. To 
implement this prohibition, the PHA may adopt lease provisions 
that specifically state that persons abusing drugs or alcohol 
are violating the lease.
    PHAs must establish occupancy standards for their inventory 
of non-designated public and assisted housing, particularly 
regarding admitting non-elderly and disabled persons who a 
history of abuse of illegal drugs or alcohol. In establishing 
these standards, if a person with a history of drug or alcohol 
abuse is elderly, PHAs may consider whether the individual 
successfully completed a rehabilitation program or is currently 
participating in a rehabilitation program.
    Non-elderly residents already living in designated 
buildings may not be evicted unless their behavior is 
inappropriate. However, if the non-elderly person is using 
illegal substances, or if their history of use of illegal drugs 
or alcohol provides a reasonable cause for the agency to 
believe their occupancy interferes with the health and safety 
of the other residents, the PHA may evict them.
    If a family is dislocated because a building is designated 
for a specific population, the PHA may provide other comparable 
public housing or tenant-based assistance. Additionally, 
reasonable moving expenses must be paid by the PHA. The Uniform 
Relocation Assistance and Real Property Acquisitions Policy Act 
of 1970 is not applicable to this provision.
    Before a building can be designated, PHAs must submit to 
HUD a plan establishing that the designation is necessary to 
achieve housing needs and goals of the low-income population in 
the jurisdiction. The plan must describe: (1) the designated 
project or building; (2) the classification of residents for 
the designated project or building; (3) any supportive services 
provided; (4) agency resources necessary to provide services to 
the non-elderly disabled families that might have been housed 
in the project or building; and (5) the design and related 
facilities accommodating the special environmental needs of the 
intended occupants. The plan is operative for five years and 
may be extended for an additional two years by submitting 
information necessary for update.
    HUD must approve or disapprove the plan with 60 days or the 
plan is deemed approved. The plan may be disapproved only in 
those instances where (1) the plan is incomplete in significant 
mattes or (2) evidence available to the Secretary challenges 
the information provided in the plan. Plans submitted under 
Section 7, prior to enactment of the Senior Citizens Housing 
Safety and Economic Relief Act of 1995, are considered as 
having been submitted under this subsection.
    Section 4.--Standards for Assisted Housing Lease 
Termination and Expedited Grievance Procedure.--Amends Section 
6 of the United States Housing Act of 1937 by allowing PHA's 
authority to change lease terms (including current agreements) 
and expedite grievance procedures: (1) for good cause; (2) if 
the behavior of a resident, member of resident's household, or 
guest threatens the health or safety or right to peaceful 
enjoyment of the premises by other residents, employees, or 
neighbors; or (3) if the resident or guest engages in any type 
of criminal activity.
    Section 5.--Extension of FHA Mortgage Insurance Program for 
Home Equity Conversion Mortgages.--Section 5 amends Section 
255(g) of the National Housing Act by extending the 
authorization period for the Home Equity Conversion Mortgage 
Demonstration Program through September 30, 2000. This 
provision increases the number of mortgages insured under this 
demonstration program to 50,000 and extends eligibility to 1- 
to 4-family unit residences where at least one unit is owner-
occupied.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                   UNITED STATES HOUSING ACT OF 1937

          * * * * * * *

                  contract provisions and requirements

  Sec. 6. (a) * * *
          * * * * * * *
  (k) The Secretary shall by regulation require each public 
housing agency receiving assistance under this Act to establish 
and implement an administrative grievance procedure under which 
tenants will--
          (1) * * *
          * * * * * * *
          (6) be entitled to receive a written decision by the 
        public housing agency on the proposed action.
For any grievance concerning an eviction or termination of 
tenancy that involves any [criminal activity that threatens the 
health, safety, or right to peaceful enjoyment of the premises 
of other tenants or employees of the public housing agency or 
any drug-related criminal activity on or near such premises] 
activity described in subsection (l)(5) of this section or 
section 8(d)(1)(B)(iii), the agency may (A) establish an 
expedited grievance procedure as the Secretary shall provide by 
rule under section 553 of title 5, United States Code, or (B) 
exclude from its grievance procedure any such grievance, in any 
jurisdiction which requires that prior to eviction, a tenant be 
given a hearing in court which the Secretary determines 
provides the basic elements of due process (which the Secretary 
shall establish by rule under section 553 of title 5, United 
States Code). Such elements of due process shall not include a 
requirement that the tenant be provided an opportunity to 
examine relevant documents within the possession of the public 
housing agency. The agency shall provide to the tenant a 
reasonable opportunity, prior to hearing or trial, to examine 
any relevant documents, records, or regulations directly 
related to the eviction or termination.
  (l) Each public housing agency shall utilize leases which--
          (1) * * *
          * * * * * * *
          [(4) require that the public housing agency may not 
        terminate the tenancy except for serious or repeated 
        violation of the terms or conditions of the lease or 
        for other good cause;
          [(5) provide that any criminal activity that 
        threatens the health, safety, or right to peaceful 
        enjoyment of the premises by other tenants or any drug-
        related criminal activity on or near such premises, 
        engaged in by a public housing tenant, any member of 
        the tenant's household, or any guest or other person 
        under the tenant's control, shall be cause for 
        termination of tenancy; and]
          (4) require that the public housing agency may not 
        terminate the tenancy except for violation of the terms 
        or conditions of the lease, violation of applicable 
        Federal, State, or local law, or for other good cause;
          (5) provide that the public housing agency may 
        terminate the tenancy of a public housing resident for 
        any activity, engaged in by the resident, any member of 
        the resident's household, or any guest or other person 
        under the resident's control, that--
                  (A) threatens the health or safety of, or 
                right to peaceful enjoyment of the premises by, 
                other residents or employees of the public 
                housing agency or other manager of the housing;
                  (B) threatens the health or safety of, or 
                right to peaceful enjoyment of their premises 
                by, persons residing in the immediate vicinity 
                of the premises; or
                  (C) is criminal activity (including drug-
                related criminal activity);
          (6) provide that any occupancy in violation of the 
        provisions of section 7(a)(4) shall be cause for 
        termination of tenancy; and
          [(6)] (7) specify that with respect to any notice of 
        eviction or termination, notwithstanding any State law, 
        a public housing tenant shall be informed of the 
        opportunity, prior to any hearing or trial, to examine 
        any relevant documents, records or regulations directly 
        related to the eviction or termination.
For purposes of paragraph (5), the term ``drug-related criminal 
activity'' means the illegal manufacture, sale, distribution, 
use, or possession with intent to manufacture, sell, 
distribute, or use, of a controlled substance (as defined in 
section 102 of the Controlled Substances Act (21 U.S.C. 802)).
          * * * * * * *

                          [designated housing

  [Sec. 7. (a) Authority To Provide Designated Housing.--
          [(1) In general.--Notwithstanding any other provision 
        of law, a public housing agency whose allocation plan 
        under subsection (f) (and any biannual update) has been 
        approved by the Secretary may, to the extent provided 
        in the allocation plan, provide public housing projects 
        (or portions of projects) designated for occupancy by 
        (A) only elderly families, (B) only disabled families 
        (subject to the provisions of subsection (e)), or (C) 
        elderly and disabled families.
          [(2) Priority for occupancy.--In determining priority 
        for admission to public housing projects (or portions 
        of projects) that are designated for occupancy as 
        provided in paragraph (1), the public housing agency 
        may make units in such projects (or portions) available 
        only to the types of families for whom the project is 
        designated. Among such types of families, preference 
        for occupancy in such projects (or portions) shall be 
        given according to the preferences for occupancy under 
        section 6(c)(4)(A).
          [(3) Eligibility of near-elderly families.--If a 
        public housing agency determines (in accordance with 
        regulations established by the Secretary) that there 
        are insufficient numbers of elderly families to fill 
        all the units in a project (or portion of a project) 
        designated under paragraph (1) for occupancy by only 
        elderly families, the agency may (pursuant to the 
        approved allocation plan under subsection (f) for the 
        agency) provide that near-elderly families who qualify 
        for preferences for occupancy under section 6(c)(4)(A) 
        may occupy dwelling units in the project (or portion).
          [(4) Vacancy.--Notwithstanding the authority under 
        paragraphs (1) and (2) to designate public housing 
        projects (or portions of projects) for occupancy by 
        only certain types of families, a public housing agency 
        shall make any dwelling unit that is ready for 
        occupancy in such a project (or portion of a project) 
        that has been vacant for more than 60 consecutive days 
        generally available for occupancy (subject to the 
        requirements of this title) without regard to such 
        designation.
      [(b) Availability of Housing.--
          [(1) Tenant choice.--The decision of any disabled 
        family not to occupy or accept occupancy in an 
        appropriate type of project or assistance made 
        available to the family under this title shall not 
        adversely affect the family with respect to a public 
        housing agency making available occupancy in other 
        appropriate projects in public housing or assistance 
        under this title.
          [(2) Discriminatory selection.--Paragraph (1) shall 
        not apply to any family who decides not to occupy or 
        accept an appropriate dwelling unit in public housing 
        or to accept assistance under this Act on the basis of 
        the race, color, religion, sex, disability, familial 
        status, or national origin of occupants of housing or 
        the surrounding area.
          [(3) Appropriateness of dwelling units.--This section 
        may not be construed to require a public housing agency 
        to offer occupancy in any dwelling unit assisted under 
        this Act to any family who is not of appropriate family 
        size for the dwelling unit.
  [(c) Prohibition of Evictions.--Any tenant who is lawfully 
residing in a dwelling unit in the project may not be evicted 
or otherwise required to vacate such unit because of the 
designation of the project (or portion of a project) or because 
of any action taken by the Secretary of Housing and Urban 
Development or any public housing agency pursuant to this 
section.
  [(d) Accommodation of Housing and Service Needs.--In 
designing, developing, otherwise acquiring and operating, 
designating, and providing housing and assistance under this 
title, each public housing agency shall meet, to the extent 
practicable, the housing and service needs of eligible families 
applying for assistance under this title, as provided in any 
allocation plan of the agency approved under subsection (f). To 
meet such needs, public housing agencies may, wherever 
practicable and in accordance with any allocation plan of the 
agency--
          [(1) provide housing in which supportive services are 
        provided, facilitated, or coordinated, mixed housing, 
        shared housing, family housing, group homes, congregate 
        housing, and other housing as the public housing agency 
        considers appropriate;
          [(2) carry out major reconstruction of obsolete 
        public housing projects and reconfiguration of public 
        housing dwelling units; and
          [(3) provide tenant-based assistance under section 
        811(b)(1).
  [(e) Application for Designated Housing for Disabled 
Families.--
          [(1) Requirement.--A project (or portion of a 
        project) may be designated under subsection (a)(1) for 
        occupancy by only disabled families only if the public 
        housing agency administering the project complies with 
        the other requirements of this section and the 
        Secretary approves an application under this subsection 
        for such designation. The Secretary shall establish the 
        form and procedures for submission and approval of 
        applications under this subsection.
          [(2) Contents.--An application under this subsection 
        shall contain--
                          [(i) a description of the projects 
                        (or portions of projects) to be 
                        designated (which may include group 
                        homes, independent living facilities, 
                        units in multifamily housing 
                        developments, condominium housing, 
                        cooperative housing, and scattered site 
                        housing);
                          [(ii) a supportive service plan--
                                  [(I) describing the needs of 
                                persons with disabilities that 
                                the housing is expected to 
                                serve;
                                  [(II) providing for delivery 
                                of supportive services 
                                appropriate to meet the 
                                individual needs of persons 
                                with disabilities occupying the 
                                housing;
                                  [(III) describing the 
                                experience of the applicant (or 
                                service providers) in providing 
                                such services;
                                  [(IV) describing the manner 
                                in which such services will be 
                                provided to such persons; and
                                  [(V) identifying any State, 
                                local, other Federal, or other 
                                funds available for providing 
                                such services; and
                          [(iii) any other information or 
                        certification that the Secretary 
                        considers appropriate.
          [(3) Approval.--The Secretary may approve an 
        application under this subsection only if the Secretary 
        determines that--
                          [(i) the persons with disabilities 
                        occupying the housing will receive 
                        supportive services based on their 
                        individual needs;
                          [(ii) the applicant (or service 
                        providers) have sufficient experience 
                        in providing supportive services;
                          [(iii) residential supervision will 
                        be provided in the housing sufficient 
                        to facilitate the provision of 
                        supportive services; and
                          [(iv) the supportive services are 
                        adequately designed to meet the special 
                        needs of the tenants.
          [(4) Supportive services.--For purposes of this 
        subsection, the term ``supportive services'' means 
        services designed to meet the special needs of tenants, 
        and may include meal services, health-related services, 
        mental health services, services for nonmedical 
        counseling, meals, transportation, personal care, 
        bathing, toileting, housekeeping, chore assistance, 
        safety, group and socialization activities, assistance 
        with medications (in accordance with any applicable 
        State laws), case management, personal emergency 
        response, and other appropriate services.
  [(f) Allocation Plans.--
          [(1) Requirement.--A public housing agency may not 
        designate a project (or portion of a project) for 
        occupancy under subsection (a)(1) unless the agency 
        submits an allocation plan under this subsection and 
        the plan is approved under paragraph (4) of this 
        subsection.
          [(2) Contents.--An allocation plan submitted under 
        this subsection by a public housing agency shall 
        include--
                  [(A) a description of the projects (or 
                portions of projects) to be designated and the 
                types of tenants occupying such projects (or 
                portions);
                  [(B) a description of the estimated pool of 
                applicants for such housing, based on the 
                waiting lists for such housing, and any 
                information collected in the comprehensive 
                housing affordability strategy under section 
                105 of the Cranston-Gonzalez National 
                Affordable Housing Act for the jurisdiction 
                within which the area served by the public 
                housing agency is located;
                  [(C) a statement identifying the projects or 
                portions of projects (including the buildings 
                or floors) to be designated for occupancy under 
                subsection (a)(1) for only certain types of 
                families, the types of families who will be 
                eligible for occupancy in such projects (or 
                portions), and the reasons for the designation;
                  [(D) documentation of the number of units in 
                the projects (or portions) identified under 
                subparagraph (C) which became vacant and 
                available for occupancy during the preceding 
                year;
                  [(E) an estimate of the number of units in 
                the projects (or portions) identified under 
                subparagraph (C) that will become vacant and 
                available for occupancy during the ensuing 2-
                year period;
                  [(F) a description of the occupancy policies 
                and procedures, including procedures for 
                maintaining waiting lists for eligible 
                applicants who are elderly families or disabled 
                families for occupancy in units in projects 
                administered by the agency sufficient to 
                document the number and duration of instances 
                in which housing assistance for eligible 
                applicants will be denied or delayed by the 
                agency because of a lack of appropriately 
                designated units;
                  [(G) a plan for securing sufficient 
                additional resources that the agency owns, 
                controls, or has received preliminary 
                notification that it will obtain, or for which 
                the agency plans to apply, that will be 
                sufficient to provide assistance to not less 
                than the number of nonelderly disabled families 
                that would have been housed if occupancy in 
                such units were not restricted pursuant to this 
                section; and
                  [(H) any comments of agencies, organizations, 
                or persons with whom the public housing agency 
                consults under paragraph (3).
          [(3) Development.--In preparing the initial 
        allocation plan, or updates of a plan under paragraph 
        (5), for submission under this subsection, a public 
        housing agency shall consult with the State or unit of 
        general local government in whose jurisdiction the area 
        served by the public housing agency is located, public 
        and private service providers, advocates for the 
        interest of eligible elderly families, disabled 
        families, and families with children, and other 
        interested parties.
          [(4) Approval.--
                  [(A) Criteria.--The Secretary shall approve 
                an allocation plan, or an updated plan, 
                submitted under this subsection if the 
                Secretary determines that, based on the plan 
                and comments submitted pursuant to paragraph 
                (2)(H)--
                          [(i) the information contained in the 
                        plan is complete and accurate and the 
                        projections are reasonable;
                          [(ii) implementation of the plan will 
                        not result in excessive vacancy rates 
                        in projects (or portions of projects) 
                        identified in paragraph (2)(C); and
                          [(iii) the plan under paragraph 
                        (2)(G) can reasonably be achieved.
                  [(B) Notification.--
                          [(i) In general.--The Secretary shall 
                        notify each public housing agency 
                        submitting an allocation plan under 
                        this subsection in writing of approval 
                        or disapproval of the plan.
                          [(ii) Timing.--A plan shall be 
                        considered to be approved if the 
                        Secretary does not notify the public 
                        housing agency of approval or 
                        disapproval of the initial or revised 
                        plan within (I) 90 days after the 
                        submission of any plan that contains 
                        comments pursuant to paragraph (2)(H), 
                        or (II) 45 days for any other plan.
                          [(iii) Resubmission.--If the 
                        Secretary disapproves the plan, the 
                        Secretary shall, for a period of not 
                        less than 45 days following the date of 
                        disapproval, permit amendments to, or 
                        resubmission of, the plan.
                  [(C) Rule of construction.--The approval of 
                an allocation plan or updated plan under this 
                subsection may not be construed to constitute 
                approval of any request for assistance for 
                major reconstruction of obsolete projects, 
                assistance for development or acquisition of 
                public housing, or assistance under section 
                811(b)(1) of the Cranston-Gonzalez National 
                Affordable Housing Act, that are contained in 
                the plan pursuant to subparagraph (H).
          [(5) Biannual update.--
                  [(A) In general.--Each public housing agency 
                that owns or operates a project (or portion of 
                a project) that is designated for occupancy 
                under subsection (a)(1) shall update the plan 
                of the agency under this subsection not less 
                than once every 2 years, as the Secretary shall 
                provide. The Secretary shall notify each public 
                housing agency submitting an updated plan under 
                this paragraph of approval or disapproval of 
                the updated plan as required under paragraph 
                (4)(B), and the provisions of such paragraph 
                shall apply to updated plans under this 
                paragraph.
                  [(B) Contents.--The updated plan shall 
                include--
                          [(i) a review of the data and 
                        projections contained in the allocation 
                        plan and the most recent update 
                        submitted under this subsection;
                          [(ii) an assessment of the accuracy 
                        of the projections contained in such 
                        plan and update;
                          [(iii) a statement of the number of 
                        times a vacancy was filled pursuant to 
                        subsection (a)(4);
                          [(iv) a statement of the number of 
                        times an application for housing 
                        assistance by an eligible applicant was 
                        denied or delayed because of a lack of 
                        appropriately designated units; and
                          [(v) a plan for adjusting the 
                        allocation, if necessary, in accordance 
                        with the needs identified pursuant to 
                        this subparagraph.
                  [(C) Standards for approval.--The Secretary 
                shall establish standards for preparation, 
                submission, and approval of updated plans.
  [(g) Prohibition of Coercion.--No elderly or disabled family 
residing in any public housing project may be required to 
accept services.]


          designated housing for elderly and disabled families


  Sec. 7. (a) Authority To Provide Designated Housing.--
          (1) In general.--Subject only to provisions of this 
        section and notwithstanding any other provision of law, 
        a public housing agency for which a plan under 
        subsection (d) is in effect may provide public housing 
        projects (or portions of projects) designated for 
        occupancy by (A) only elderly families, (B) only 
        disabled families, or (C) elderly and disabled 
        families.
          (2) Priority for occupancy.--In determining priority 
        for admission to public housing projects (or portions 
        of projects) that are designated for occupancy as 
        provided in paragraph (1), the public housing agency 
        may make units in such projects (or portions) available 
        only to the types of families for whom the project is 
        designated.
          (3) Eligibility of near-elderly families.--If a 
        public housing agency determines that there are 
        insufficient numbers of elderly families to fill all 
        the units in a project (or portion of a project) 
        designated under paragraph (1) for occupancy by only 
        elderly families, the agency may provide that near-
        elderly families may occupy dwelling units in the 
        project (or portion).
          (4) Limitation on occupancy in projects for elderly 
        families.--
                  (A) In general.--Subject only to the 
                provisions of subsection (b) and 
                notwithstanding any other provision of law, a 
                dwelling unit in a project (or portion of a 
                project) that is designated under paragraph (1) 
                for occupancy by only elderly families or by 
                only elderly and disabled families shall not be 
                occupied by any individual who is not an 
                elderly person and--
                          (i) who currently illegally uses a 
                        controlled substance; or
                          (ii) whose history of illegal use of 
                        a controlled substance or use of 
                        alcohol, or current use of alcohol, 
                        provides reasonable cause for the 
                        agency to believe that the occupancy by 
                        such individual may interfere with the 
                        health, safety, or right to peaceful 
                        enjoyment of the premises by other 
                        tenants.
                  (B) Consideration of rehabilitation.--In 
                determining whether, pursuant to subparagraph 
                (A), to deny occupancy to any individual based 
                on a history of use of a controlled substance 
                or alcohol, a public housing agency may 
                consider the factors under section 16(e)(2).
  (b) Standards Regarding Evictions.--
          (1) Limitation.--Except as provided in paragraph (2), 
        any tenant who is lawfully residing in a dwelling unit 
        in a public housing project may not be evicted or 
        otherwise required to vacate such unit because of the 
        designation of the project (or portion of a project) 
        pursuant to this section or because of any action taken 
        by the Secretary or any public housing agency pursuant 
        to this section.
          (2) Requirement to evict nonelderly tenants in 
        housing designated for elderly families who have 
        current drug or alcohol abuse problems.--The public 
        housing agency administering a project (or portion of a 
        project) described in subsection (a)(4)(A) shall evict 
        any individual who occupies a dwelling unit in such a 
        project and who currently illegally uses a controlled 
        substance or whose current use of alcohol provides a 
        reasonable cause for the agency to believe that the 
        occupancy by such individual may interfere with the 
        health, safety, or right to peaceful enjoyment of the 
        premises by other residents. This paragraph may not be 
        construed to require a public housing agency to evict 
        any other individual who occupies the same dwelling 
        unit as the individual required to be evicted.
  (c) Relocation Assistance.--A public housing agency that 
designates any existing project or building, or portion 
thereof, for occupancy as provided under subsection (a) shall 
provide, to each person and family relocated in connection with 
such designation--
          (1) notice of the designation and relocation, as soon 
        as is practicable for the agency and the person or 
        family;
          (2) comparable housing (including appropriate 
        services and design features), which may include 
        tenant-based rental assistance under section 8, at a 
        rental rate that is comparable to that applicable to 
        the unit from which the person or family has vacated; 
        and
          (3) payment of actual, reasonable moving expenses.
  (d) Required Plan.--A plan under this subsection for 
designating a project (or portion of a project) for occupancy 
under subsection (a)(1) is a plan, prepared by the public 
housing agency for the project and submitted to the Secretary, 
that--
          (1) establishes that the designation of the project 
        is necessary--
                  (A) to achieve the housing goals for the 
                jurisdiction under the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing 
                Act; and
                  (B) to meet the housing needs of the low-
                income population of the jurisdiction; and
          (2) includes a description of--
                  (A) the project (or portion of a project) to 
                be designated;
                  (B) the types of tenants for which the 
                project is to be designated;
                  (C) any supportive services to be provided to 
                tenants of the designated project (or portion);
                  (D) how the agency will secure any additional 
                resources or housing assistance that is 
                necessary to provide assistance to nonelderly 
                disabled families that would have been housed 
                if occupancy in project were not restricted 
                pursuant to this section; and
                  (E) how the design and related facilities (as 
                such term is defined in section 202(d)(8) of 
                the Housing Act of 1959) of the project 
                accommodate the special environmental needs of 
                the intended occupants.
For purposes of this subsection, the term ``supportive 
services'' means services designed to meet the special needs of 
residents.
  (e) Review of Plans.--
          (1) Review and notification.--The Secretary shall 
        conduct a limited review of each plan under subsection 
        (d) that is submitted to the Secretary to ensure that 
        the plan is complete and complies with the requirements 
        of subsection (d). The Secretary shall notify each 
        public housing agency submitting a plan whether the 
        plan complies with such requirements not later than 60 
        days after receiving the plan. If the Secretary does 
        not notify the public housing agency, as required under 
        this paragraph or paragraph (2), the plan shall be 
        considered, for purposes of this section, to comply 
        with the requirements under subsection (d) and the 
        Secretary shall be considered to have notified the 
        agency of such compliance upon the expiration of such 
        60-day period.
          (2) Notice of reasons for determination of 
        noncompliance.--If the Secretary determines that a 
        plan, as submitted, does not comply with the 
        requirements under subsection (d), the Secretary shall 
        specify in the notice under paragraph (1) the reasons 
        for the noncompliance and any modifications necessary 
        for the plan to meet such requirements.
          (3) Standards for determination of noncompliance.--
        The Secretary may determine that a plan does not comply 
        with the requirements under subsection (d) only if--
                  (A) the plan is incomplete in significant 
                matters required under such subsection; or
                  (B) there is evidence available to the 
                Secretary that challenges, in a substantial 
                manner, any information provided in the plan.
          (4) Treatment of existing plans.--Notwithstanding any 
        other provision of this section, a public housing 
        agency shall be considered to have submitted a plan 
        under this subsection if the agency has submitted to 
        the Secretary an application and allocation plan under 
        this section (as in effect before the date of the 
        enactment of the Senior Citizens Housing Safety and 
        Economic Relief Act of 1995) that have not been 
        approved or disapproved before such date of enactment.
  (f) Effectiveness.--
          (1) 5-year effectiveness of plan.--A plan under 
        subsection (d) shall be in effect for purposes of this 
        section only during the 5-year period that begins upon 
        notification under subsection (e)(1) of the public 
        housing agency that the plan complies with the 
        requirements under subsection (d). An agency may extend 
        the effectiveness of the designation and plan for an 
        additional 2-year period beginning upon the expiration 
        of such period (or the expiration of any previous 
        extension period under this sentence) by submitting to 
        the Secretary any information needed to update such 
        plan.
          (2) Savings provision.--Any application and 
        allocation plan approved under this section (as in 
        effect before the date of the enactment of the Senior 
        Citizens Housing Safety and Economic Relief Act of 
        1995) before such date of enactment shall be considered 
        to be a plan under subsection (d) that is in effect for 
        purposes of this section for the 5-year period 
        beginning upon such approval.
  (g) Inapplicability of Uniform Relocation Assistance and Real 
Property Acquisitions Policy Act of 1970.--No tenant of a 
public housing project shall be considered to be displaced for 
purposes of the Uniform Relocation Assistance and Real Property 
Acquisitions Policy Act of 1970 because of the designation of 
any existing project or building, or portion thereof, for 
occupancy as provided under subsection (a) of this section.
  (h) Inapplicability to Indian Housing.--The provisions of 
this section shall not apply with respect to low-income housing 
developed or operated pursuant to a contract between the 
Secretary and an Indian housing authority.

                    lower income housing assistance

  Sec. 8. (a) * * *
          * * * * * * *
  (d)(1) Contracts to make assistance payments entered into by 
a public housing agency with an owner of existing housing units 
shall provide (with respect to any unit) that--
          (A) * * *
          (B)(i) the lease between the tenant and the owner 
        shall be for at least one year or the term of such 
        contract, whichever is shorter, and shall contain other 
        terms and conditions specified by the Secretary;
          [(ii) the owner shall not terminate the tenancy 
        except for serious or repeated violation of the terms 
        and conditions of the lease, for violation of 
        applicable Federal, State, or local law, or for other 
        good cause;
          [(iii) provide that any criminal activity that 
        threatens the health, safety, or right to peaceful 
        enjoyment of the premises by other tenants, any 
        criminal activity that threatens the health, safety, or 
        right to peaceful enjoyment of their residences by 
        persons residing in the immediate vicinity of the 
        premises, or any drug-related criminal activity on or 
        near such premises, engaged in by a tenant of any unit, 
        any member of the tenant's household, or any guest or 
        other person under the tenant's control, shall be cause 
        for termination of tenancy; and]
          (ii) the owner shall not terminate the tenancy except 
        for violation of the terms and conditions of the lease, 
        violation of applicable Federal, State, or local law, 
        or other good cause;
          (iii) the owner may terminate the tenancy of the 
        tenant of a unit for any activity, engaged in by the 
        tenant, any member of the tenant's household, or any 
        guest or other person under the tenant's control, 
        that--
                  (I) threatens the health or safety of, or 
                right to peaceful enjoyment of the premises by, 
                other tenants or employees of the owner or 
                manager of the housing;
                  (II) threatens the health or safety of, or 
                right to peaceful enjoyment of their residences 
                by, persons residing in the immediate vicinity 
                of the premises; or
                  (III) is criminal activity (including drug-
                related criminal activity); and
          * * * * * * *

               [income] eligibility for assisted housing

  Sec. 16. (a) Not more than 25 per centum of the dwelling 
units which were available for occupancy under public housing 
annual contributions contracts and section 8 housing assistance 
payments contracts under this Act before the effective date of 
the Housing and Community Development Amendments of 1981, and 
which will be leased on or after such effective date shall be 
available for leasing by low-income families other than very 
low-income families.
          * * * * * * *
  (e) Authority To Limit Admission of Drug or Alcohol 
Abusers.--
          (1) In general.--Notwithstanding any other provision 
        of law, a public housing agency may establish standards 
        for occupancy in public housing dwelling units and 
        assistance under section 8, that prohibit admission to 
        such units and assistance under such section by any 
        individual--
                  (A) who currently illegally uses a controlled 
                substance; or
                  (B) whose history of illegal use of a 
                controlled substance or use of alcohol, or 
                current use of alcohol, provides reasonable 
                cause for the agency to believe that the 
                occupancy by such individual may interfere with 
                the health, safety, or right to peaceful 
                enjoyment of the premises by other residents.
          (2) Consideration of Rehabilitation.--In determining 
        whether, pursuant to paragraph (1), to deny admission 
        or assistance to any elderly person based on a history 
        of use of a controlled substance or alcohol, a public 
        housing agency may consider whether such elderly 
        person--
                  (A) has successfully completed a supervised 
                drug or alcohol rehabilitation program (as 
                applicable) and is no longer engaging in the 
                illegal use of a controlled substance or use of 
                alcohol (as applicable);
                  (B) has otherwise been rehabilitated 
                successfully and is no longer engaging in the 
                illegal use of a controlled substance or use of 
                alcohol (as applicable); or
                  (C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) 
                and is no longer engaging in the illegal use of 
                a controlled substance or use of alcohol (as 
                applicable).
          * * * * * * *
                              ----------                              


                SECTION 255 OF THE NATIONAL HOUSING ACT

demonstration program of insurance of home equity conversion mortgages 
                         for elderly homeowners

      Sec. 255. (a) * * *
          * * * * * * *
  (d) Eligibility Requirements.--To be eligible for insurance 
under this section, a mortgage shall--
          (1) * * *
          * * * * * * *
          [(3) be secured by a dwelling that is designed 
        principally for a 1-family residence and is occupied by 
        the mortgagor;]
          (3) be secured by a dwelling that is designed 
        principally for a 1- to 4-family residence in which the 
        mortgagor occupies 1 of the units;
          * * * * * * *
  (g) Limitation on Insurance Authority.--No mortgage may be 
insured under this section after September 30, [1995] 2000, 
except pursuant to a commitment to insure issued on or before 
such date. The total number of mortgages insured under this 
section may not exceed [25,000] 50,000. In no case may the 
benefits of insurance under this section exceed the maximum 
dollar amount established under section 203(b)(2) for 1-family 
residences in the area in which the dwelling subject to the 
mortgage under this section is located.
          * * * * * * *
                             MINORITY VIEWS

    The Democratic Members of the Committee on Banking and 
Financial Services endorse the Senior Citizens Housing Safety 
and Economic Relief Act of 1995 with reservations. We applaud 
several of the provisions, including the changes to the mixed 
populations provisions and the extension and expansion of the 
Home Equity Conversion Mortgage program. Indeed, many of the 
policy changes in this bill were enacted by the House last year 
during consideration of omnibus housing reauthorization 
legislation that failed to pass the Senate.
    However, this bill includes several provisions that we 
believe represent important policy changes about which we have 
had little debate and discussion. They represent much more than 
mere corrections; and we would have preferred regular order 
rather than the extraordinary process of corrections day for 
provisions which may not become law during this session of 
Congress. We also find it somewhat ironic that we must abdicate 
regular order to amend the United States Housing Act of 1937 
which the Chairman of the Subcommittee on Housing and Community 
Opportunity proposes to repeal in H.R. 2406, his public housing 
and rental assistance program reform legislation.
    Many of the changes proposed in occupancy standards, both 
admission and eviction policy, and lease and grievance 
procedures for public housing and the section 8 housing 
assistance program are policies and procedures for screening 
and eviction that housing authorities should be employing 
without statutory requirement. They simply are sound management 
practices.
    However, in making these statutory clarifications, the 
Minority is concerned that efforts to ``protect'' the elderly 
and other residents of public and section 8 housing from 
actions of others that threaten their safety, health, and 
peaceful enjoyment do not unfairly and arbitrarily infringe on 
the rights of innocent and law abiding tenants.

                               admissions

    The Committee bill clarifies what current law permits with 
respect to the provision of assistance to former and current 
drug users or alcohol abusers. With regard to admission and 
screening procedures, the Committee bill directs the public 
housing authority [PHA] to review an applicant's ``history'' to 
determine whether that applicant's use of drugs or abuse of 
alcohol give the PHA reasonable cause to believe that the 
applicant will threaten the health, safety and welfare of 
residents. The Minority notes that extra caution must be taken 
by the PHA in conducting a search of a potential tenant's 
``history'' so that the PHA not inadvertently infringe on a 
resident's privacy rights as provided by the Constitution of 
the United States.
    We also are concerned that the term ``history'' must be 
well defined. Housing authorities under the guise of the term 
``history'' should not be able to deny assistance simply 
because a former landlord or a former neighbor with a grudge 
paints an unfavorable portrait of a prospective tenant; nor 
should housing authorities look back to actions that the 
applicant took years before he/she applies for housing. As an 
example someone who was convicted of a crime of illegal use of 
a controlled substance years ago and has since been law abiding 
should not automatically be denied admission to public housing 
or section 8 housing. We believe that in establishing standards 
to review ``history,'' housing authorities should take great 
care to limit their review to verifiable and relevant 
information.
    We were pleased that an amendment offered by Representative 
Flake and Waters, and passed by voice vote, distinguishes that 
a PHA, in reviewing an elderly applicant's ``history'', may 
consider the positive actions taken by the applicant, such as 
enrollment or completion of a supervised rehabilitation 
program, to control his/her addictions. This amendment goes a 
long way to ameliorating our concern that the application 
process for public housing and section 8 certificates not be 
applied unfairly and arbitrarily.
    Without the inclusion of the Flake/Waters amendment, we 
believe that H.R. 117 would have authorized the creation of 
different standards of review for the elderly and the non-
elderly; the disabled and the elderly; and the poor and the 
rich. The Minority believes that every citizen--regardless of 
their income, disability or age--deserves equal protection 
under the law. We remain concerned that H.R. 117 does not 
entirely protect that Constitutional right, even with the 
inclusion of the constructive amendment of Representatives 
Flake and Waters.
    Finally, in the course of the debate regarding ``history'', 
Democratic Members expressed their concern that applicants, who 
have been denied assistance due to the PHA's evaluation of the 
applicant's ``history'', be provided and administrative process 
under which he/she may appeal the PHA's ruling. Current federal 
law does not guarantee that right except on the basis of 
disability, although some state laws do. Democratic Members 
would urge PHAs, out of regard for fairness, to create an 
appeals process for those applicants denied housing on the 
basis of history and not covered under the rubric of the Fair 
Housing Amendments Act, the Americans for Disabilities Act, and 
section 504 of the 1973 Rehabilitation Act.

                               evictions

    The Committee bill changes current law in that it broadens 
the grounds for evictions in the lease from ``drug-related 
criminal activity'' to a ``any'' activity that threatens the 
health, safety or right to peaceful enjoyment of the premises, 
as well. In the event that a resident violates the terms of the 
lease, the PHA may evict the resident under expedited grievance 
procedures. We would emphasize that the grievance process, 
however, must uphold the resident's right to due process.
    The Committee bill further requires PHAs to evict non-
elderly disabled who reside in buildings designated for the 
elderly and who threaten the health safety and peaceful 
enjoyment of elderly residents due to the non-elderly 
resident's abuse of alcohol and use of drugs. The Minority 
applauds the Majority for recognizing at our behest that PHAs 
may evict disabled non-elderly only for justifiable cause and 
current behavior. However, we would urge the housing 
authorities carefully to define justifiable cause and current 
behavior. However, we would urge the housing authorities 
carefully to define justifiable cause and current behavior. If 
a case arises in which a disabled person in good standing in 
the community falls off the wagon once, disrupting the other 
residents peaceful enjoyment of the premises, depending on the 
severity of the disturbance, that resident should not summarily 
be evicted.
    Democratic Members agree that PHAs should have the 
discretionary authority to evict problematic tenants; but not 
to the extent that the PHA tramples tenants' right. The bill 
provides that tenant may be evicted for the actions of others. 
We would urge PHAs to proceed cautiously in terminating a 
tenant's housing assistance if that tenant truly is unaware 
that members of the household are engaging in activity in 
violation of the lease.

                    mixed populations' designations

    The Democratic Members support much-need corrections to the 
1992 mixed populations law that permits PHAs to designate 
elderly-only, disabled-only or elderly-disabled housing, a 
policy that was initiated on a bipartisan basis during the 102d 
Congress H.R. 117, as amended by the Committee, adds another 
chapter to the debate.
    The correction to the designation process is one that 
streamlines the PHA's planning and application process while 
continuing to balance the needs of the elderly and the disabled 
in the community. The Minority's only concern with regard to 
the corrections is that the Committee has not heard testimony 
regarding the current process. The Committee held its first 
hearing of the 104th Congress on the problems plaguing public 
housing communities of elderly and disabled resident the same 
day as the mark-up and without hearing all viewpoints.
    However, we commend the Majority for provisions which 
continue to balance the housing needs of the elderly with those 
of the nonelderly disabled population; for protecting current 
residents from eviction in order to achieve designations; for 
authorizing relocation assistance; and for requiring that 
within each plan for designation as housing authority include 
plans for providing appropriate social and supportive services.
    We note, however, that there are no assurances that funding 
will be available for providing that relocation assistance. 
Further we continue to believe that if appropriate services are 
provided to the elderly and disabled, that the two populations 
can live together harmoniously. On balance, Democratic Members 
of the Committee support this legislation. But we would 
encourage PHAs to exercise their discretion in providing 
housing assistance to many of the most vulnerable in our 
communities carefully and fairly.

                                   Henry B. Gonzalez.
                                   Cleo Fields.
                                   Bruce F. Vento.
                                   Barney Frank.
                                   Floyd H. Flake.
                                   Tom Barrett.
                                   Maurice D. Hinchey.
                                   Nydia M. Velazquez.
                                   Lucille Roybal-Allard.
                                   Melvin L. Watt.
                                   Maxine Waters.
                                   Paul E. Kanjorski.
                                   John J. LaFalce.
                                   Ken Bentsen.
                                   Albert R. Wynn.
                                   Kweisi Mfume.
                  ADDITIONAL VIEWS OF REP. JOE KENNEDY

    I strongly support the efforts of H.R. 117 to make public 
housing safe for our senior citizens both through better 
screening of potential tenants prior to admission, and more 
streamlined procedures for throwing out the bad actors who 
threaten the peaceful enjoyment by senior citizens of public 
housing. This is an effort I have long supported and fought 
for.
    I also support the provision allowing public housing 
authorities to create elderly-only, disabled-only, and mixed 
population housing, depending on local needs.
    The problem is, given the housing budgets passed by the 
Republicans, we should understand that the likely outcome of 
these measures is to reduce the amount of housing built for 
disabled Americans. They have also voted time and again to cut 
funds for senior housing and to raise rents on seniors.
    The Republicans are paying lip service to elderly housing. 
Earlier this year however, they opposed an amendment I offered 
to the HUD Appropriations bill that would have repealed an 
increase in rents the elderly are charged for assisted housing. 
The Republicans voted to drastically slash public housing 
funding, despite the fact that about one-third of public 
housing residents are elderly. They eliminated incremental 
section 8 vouchers that the Secretary had been using to move 
out non-elderly tenants from elderly-only public housing. So, 
when it comes to funding, the Republicans are prepared to 
abandon the elderly.
    We need to increase funding for housing for the disabled so 
that the power to create elderly only and disabled-only housing 
is not simply an empty power.

                                                       Joe Kennedy.

                                
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